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HomeMy WebLinkAboutC36620 - Mgmt and Staffing of the PD Aquatic Ctr Contract No. C36620 STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: May 10, 2018 PREPARED BY: Johnny Terfehr, Management Analyst REQUEST: Request for approval to award Contract No. C36620 for Professional Services to the Family YMCA of the Desert, Palm Desert, California, for management and staffing of the Palm Desert Aquatic Center for $165,000 plus reimbursement of all costs. Recommendation By Minute Motion: 1. Award Contract No. C36620 for professional services to the Family YMCA of the Desert ("YMCA"), Palm Desert, California, for management and staffing of the Palm Desert Aquatic Center; 2. Authorize the Mayor to execute the Agreement. If the above actions are approved, funds are available in the following accounts: Aquatic Contracted Labor, Account No. 2424549-4802101 Prof - Other, Account No. 2424549-4309000 Prof— Other, Admn Expenses, Account No. 2424549-4309300 COGS - Food & Merchandise, Account No. 2424549-4801100 Strategic Plan High quality facility management and staffing at the Palm Desert Aquatic Center (PDAC) sustains one of the City's premier recreational facilities. The proposed action will further the goals of the Strategic Plan by providing pervasive recreation opportunities for residents and visitors. Background Analysis The current contract for management of PDAC ends June 30, 2018. In January 2018, the City issued a request for proposals for management the Aquatic Center. A competitive bidding process was conducted resulting proposals from the YMCA of the Desert and Standguard Aquatics. The proposals were reviewed and scored by a panel of staff from April 26, 2018 - Staff Report Award Contract No. C36620 for Professional Services to Family YMCA of the Desert Page 2 of 3 Standguard Aquatics. The proposals were reviewed and scored by a panel of staff from various City departments. Staff conducted interviews with principals from both organizations and made their evaluations based on qualifications of the firm, management approach, proposed services, and completeness of response. The YMCA scored highest of the two proposals based on these factors. The cost proposals were sufficiently different in approach to make a direct comparison of cost difficult. The YMCA continued with its model of a flat management fee of $165,000 per year (increased from $132,000) plus reimbursement of costs. Standguard proposed an operational management fee of $598,800 which includes costs except those related to programming and concessions. Instead, Standguard proposed cost sharing for revenues associated with programming and concessions but the City would still reimburse for costs associated with both. Since the grand opening of the facility in June of 2011, the YMCA has done an excellent job managing the facility. PDAC has a score of 4.5 out of 5 on TripAdvisor.com and 4 out of 5 on Yelp.com. In addition, staff has received very few complaints about the management the Aquatic Center, but rather, consistently receives compliments about the professionalism and courtesy of staff along with the excellent overall condition of the facility. The YMCA is dedicated to operating a safe facility, to providing a community oriented management philosophy, and to maintaining the facility in excellent condition, consistent with the City's maintenance standards at other City-owned facilities. While certain features can be out of service temporarily for maintenance, the Aquatic Center has not had to close due to lack of staffing or maintenance failures under the management of the YMCA. Based on the proposal evaluation scores, interview scores, and the simple management fee plus reimbursement of costs financing approach, staff is recommending that the City continue its relationship with the YMCA as operator of the Aquatic Center. Fiscal Analysis The YMCA has not requested an increase in its management fee since PDAC opened in 2011. In this proposal, the YMCA is requesting a 25 percent increase in the management fee bringing the total from $132,000 to $165,000 per year. Funds for this increase are available in the Aquatic Center FY 2018/2019 budget. April 26, 2018 - Staff Report Award Contract No. C36620 for Professional Services to Family YMCA of the Desert Page 3 of 3 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N//6‘, 04e-- '1/44. Robert W. Hargreaves Ryan Stendell ,1a et Moore Lauri Aylaian City Attorney Director of Community Director of Finance City Manager Development VENDOR: YMCA of the Desert 43-930 San Pablo Ave Palm Desert, CA 92260 ATTACHMENTS: Agreement YMCA Management Proposal YMCA Cost Proposal CONTRACT NO. C36620 PROPOSED DRAFT AGREEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of , 20 , by and between THE CITY OF PALM DESERT, a municipal corporation, hereinafter referred to as "CITY" and , hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, CONSULTANT is a corporation, the principal members of which are Professional CONSULTANTS duly registered under the laws of the State of California; and WHEREAS, CITY desires to engage CONSULTANT to render certain technical and professional services as set forth in Exhibit "A" (CONSULTANT'S Proposal of Services) in connection with the management and operation of the City of Palm Desert Aquatic Center, Exhibit"B" Request for Proposal for Contract No. C36620 issued January 10, 2018, and within the financial constraints of Exhibit "C" Palm Desert Aquatic Center Program Budget (as may be amended from year to year by the City Council through the annual budget process). NOW, THEREFORE, the parties hereto agree as follows: (1) TERM: (1.1) The term of this Agreement shall commence on July 1, 2018 ("Commencement Date") and continue through June 30, 2019 ("Termination Date"). Notwithstanding the foregoing, however, either Party may terminate this Agreement without cause at any time by delivery to the other Party of 90 days written notice. Either Party may terminate this Agreement for cause at any time by delivery to the other Party of 30 days written notice. In any such case, the CONSULTANT shall be paid the reasonable value of the services rendered, based upon a pro rata portion of CONSULTANTS Fixed Management Fee, up to the time of the termination. The CONSULTANT shall keep adequate records to substantiate costs and provide copies of original timecards in the event of termination or suspension. (1.2) The CITY, at its option, may extend the term of this Agreement for up to four one-year contract extensions based on CONSULTANT'S performance and mutual agreement. In the event of the exercise of such option by the CITY, all other terms of this Agreement shall remain the same, except for the new Termination Date, as agreed to by the Parties. (2) CITY hereby agrees to engage CONSULTANT to perform the technical and/or professional services as hereinafter set forth. (3) CONSULTANT shall perform all work necessary within the schedules provided herein to complete the services set forth in Exhibit "A" attached hereto and by reference incorporated herein and made a part hereof. The RFP (Exhibit "B" and all its contents are incorporated herein and made a part hereof. (4) All information, data, reports and records and maps as are existing and available from the CITY and necessary for the carryings out of the work outlined in Exhibit "A" hereof shall be furnished to CONSULTANT without charge by CITY and CITY shall cooperate in every way reasonable in the carrying out of the work without delay. CONSULTANT agrees to work closely with City staff in the performance of services and shall be available to City's staff, consultants and other staff at all reasonable times. (5) CONSULTANT represents that, it employs or will employ at its own expense, all personnel required in performing the services under this Agreement. CONSULTANT certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the services. CONSULTANT verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. (6) All of the services required hereunder will be performed by CONSULTANT or under its direct supervision, and all personnel engaged in the work shall be qualified and shall be authorized or permitted under state and local law to perform such services. CONSULTANT shall perform all services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. CONSULTANT represents and maintains that it is skilled in the professional calling necessary to perform the services. CONSULTANT warrants that all employees and subconsultants shall have sufficient skill and experience to perform the services assigned to them. As provided for in the indemnification provisions of this Agreement, CONSULTANT shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the CONSULTANT's failure to comply with the standard of care provided for herein. Any employee of the CONSULTANT or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the safety of persons or property, or any employee who fails or refuses to perform the services in a manner acceptable to the City, shall be promptly removed by the CONSULTANT and shall not be re-employed to perform any of the services. (7) The execution of this Agreement by the parties hereto does not constitute an authorization to proceed. CITY's Director of Community Development has not authorized CONSULTANT to proceed. (8) Designee of the City: Until such time as CONSULTANT shall have received written notice to the contrary, the "designee of the City: as that term is used herein, shall be the City Manager. (9) The CONSULTANT warrants that he has not employed or retained any company or person, other than a bona fide employee working solely for the consultant, to solicit or secure this Agreement, and that he has not paid or agreed to pay any company or person, other than a bona fide employee working solely for the consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the right to annul this Agreement without liability or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. (10) The right is reserved by the CITY to terminate the Agreement at any time and without cause upon seven (7) days written notice to CONSULTANT of such termination, and specifying the effective date thereof. In any such case, the CONSULTANT shall be paid the reasonable value of the services rendered, based upon CONSULTANT'S standard hourly rates, up to the time of the termination. The CONSULTANT shall keep adequate records to substantiate costs and provide copies of original timecards in the event of termination or suspension. CONSULTANT may not terminate this Agreement except for cause. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. (11) All documents including tracings, drawings, estimates, reports, investigations and computations shall be delivered to and become the property of the CITY. CITY acknowledges and agrees that all plans, specifications, reports and other design documents prepared by CONSULTANT pursuant to this Agreement shall be used exclusively on this project and shall not be used for any other work without the written consent of CONSULTANT. In the event CITY and CONSULTANT permit the re-use or other use of the plans, specifications, reports or other design documents, CITY shall require the party using them to indemnify and hold harmless CITY and CONSULTANT regarding such re-use or other use, and CITY shall require the party using them to eliminate any and all references to CONSULTANT from the plans, specifications, reports and other design documents. (12) The CONSULTANT shall comply with all federal, state and local laws, ordinances and regulations applicable to work and shall give all notices required by law. CONSULTANT shall be liable for all violations of such laws and regulations in connection with services. If CONSULTANT performs any work knowing it to be contrary to such laws, rules and regulations, CONSULTANT shall be solely responsible for all costs arising therefrom. CONSULTANT shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. (13) No change in the character or extent of the work to be performed by the CONSULTANT shall be made except by supplemental authority in writing between CITY and the CONSULTANT. The supplemental authority shall set forth the changes of work, extension of time and adjustment of the fee to be paid by CITY to the CONSULTANT, if any. (14) In connection with the execution of this Agreement, the CONSULTANT shall not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin. The CONSULTANT shall take affirmative actions to insure equal employment opportunity and that employees are treated, during their employment, without regard to their race, religion, color, sex or national origin. Such actions shall include, but not limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay, or other forms of compensation and selection for training, including apprenticeship. This clause shall be included in each related subcontract, if any, awarded by the CONSULTANT. (15) The CITY agrees to pay the CONSULTANT a fixed Management Fee for the period of this Agreement to the expiration of the term, CONSULTANT shall receive a "Fixed Management Fee" of $13,750.00 per month. The Fixed Management Fee shall be paid monthly, in arrears, within 30 days of receipt of the invoice. In addition to the Fixed Management Fee, the CITY shall, on a monthly basis, reimburse CONSULTANT for costs and expenses incurred by CONSULTANT in performing the services under this Agreement as identified in Exhibit "A" and Exhibit "B" of this Agreement. However, CONSULTANT shall not exceed the Palm Desert Aquatic Center Program Budget ("Program Budget") amount without prior consent of the City Council. The Program Budget is included herein as Exhibit "C" (16) Aquatic Center Accounts: The Aquatic Center shall cause to be established bank accounts for the operations of the Aquatic Center at a banking institution (which banking institution shall be determined by the City), such accounts to be in the City's name. CONSULTANT will collect and deposit daily in the Aquatic Center Accounts designated by the City all monies received from the operations of the Aquatic Center. (16.1) All revenues generated by the Aquatic Center shall be the property of the City. Revenue collection procedures shall be in accordance with the method approved by the City. The deposit shall be made with the bank no later than the next business day following the date on which the revenues are collected. A duplicate copy of the deposit receipt identifying the amount collected by CONSULTANT and its deposit with the bank shall be delivered by CONSULTANT to the designee of the City on a weekly basis, or, at the option of the City, CONSULTANT shall provide the City with a weekly bank deposit report via a computerized "on-line" reporting system. (16.2) Until such monies or other things of value have been deposited in the City's account and verified by the bank in accordance with this Agreement, CONSULTANT bears all risk of loss therefore, including, but not limited to, damage, destruction, disappearance, theft, fraudulent, or any dishonest or unlawful act, or other hazard, irrespective of location and whether by CONSULTANT's employees or any other person or entity. Should such an event or act occur, CONSULTANT shall notify as soon as possible the designee of the City and the County Sheriff and CONSULTANT shall prepare a report of such incident. CONSULTANT shall notify the City of any operational changes deemed necessary by CONSULTANT to safeguard the City's monies or things of value. (16.3) CONSULTANT shall require of the bank holding the City's funds that all funds be secured to such an extent and in such a manner as is required by applicable law in connection with the deposit of funds of a public entity. (16.4) Accounting System: CONSULTANT shall design, establish, implement and maintain procedures for the accounting and control of the revenues from the time of their collection by CONSULTANT to the time of deposit at the bank. This shall include a system of internal controls to account for all gross revenues. Such procedures shall include each of the accounting and cash control processes identified recommended by CONSULTANT and approved by the designee of the City, which approval shall not unreasonably be withheld. (16.5) Books and Records: CONSULTANT shall maintain in accordance with GAAP (Generally Accepted Accounting Principles) adequate books of account with respect to its management and operations of the facilities and shall maintain such books at its local offices in Palm Desert, California. CONSULTANT shall keep full an accurate books of account and such other records as are necessary to reflect the results of the operation of the Aquatic Center. For this purpose, CONSULTANT agrees it will make available to the City at all times all books and records in CONSULTANT's possession relating to the Aquatic Center, including contract documents, invoices and construction records. All accounting records shall be maintained in accordance with GAAP and shall be maintained in a cash format for each Operating Year. All such books, records, and reports shall be maintained separately from other facilities operated by CONSULTANT. CONSULTANT agrees to maintain reasonable and necessary accounting, operating, and administrative controls relating to the financial aspects of the Aquatic Center, and such controls shall provide checks and balances designed to protect the Aquatic Center, CONSULTANT, and the City. CONSULTANT shall maintain all financial and accounting books and records for a period of at least three years after the expiration or earlier termination of this Agreement, and the City shall have the right to inspect and audit such books and records during such period as provided below. CONSULTANT shall provide the City with a verification and accounting system as directed by the City for all monies, gross receipts, revenues, fees and charges collected at the Aquatic Center. Such system shall include: (a) Recordation of all sales by means of a cash register, which will display the amount of each sale and automatically issue a customer's receipt. The cash registers used by CONSULTANT shall be approved by the City. Said cash registers shall in all cases have locked in sales total transaction counters that are constantly accumulating and which cannot, in any case, be reset, and in addition, a tape loaded within the cash registers on which transaction numbers and sales details are imprinted. Beginning and ending cash register readings shall be made a matter of daily record. In the event of a mechanical or electrical failure of cash register, CONSULTANT shall record by hand all collections and issue a customer receipt in like manner. (b) Entry of each and every Aquatic Center users name on entry log. (c) Totaling of Aquatic Center users at the end of each day and reconciliation of fee category totals on cash register detail tapes. (d) Maintenance of a daily log book detailing the number of Aquatic Center users by fee category and total amount of cash collected by fee category. (16.6) Inspection: The City or its authorized agents, auditors, or representatives shall have the right during normal business hours to review, inspect, audit, and copy the books, records, invoices, deposit receipts, canceled checks, and other accounting and financial information maintained by CONSULTANT in connection with the operation of the Aquatic Center. All such books and records shall be made available to the City at the Aquatic Center, unless the City and CONSULTANT agree upon another location. The CONSULTANT, at its own expense, shall have the right to retain an independent accounting firm to audit the books and records of the Aquatic Center on an annual basis. The City's rights under this Section shall continue after termination of this Agreement. (16.7) Reports to City: CONSULTANT shall deliver to the City the following financial statements, in a form reasonably acceptable to the City: (16.7.1) Within 20 days after the end of each calendar month, a statement of Gross Revenues, showing the results of operation of the Aquatic Center for such month and for the Operating Year to date, which statement shall include sufficient detail to reflect all Gross Revenues, Aquatic Center Expenses and the Fixed Management Fee. Such statements shall include a budget comparison, a variance report, and such other customary reports as may reasonably be requested by the City. Such statement shall be certified as correct by an authorized financial officer of CONSULTANT. Such statement shall be in a form reasonably acceptable to the City; and (16.7.2) Within 30 days after the end of each Operating Year, a statement of profits, losses, and Gross Revenues, showing the results of operation of the Aquatic Center for such Operating Year which statement shall include sufficient detail to reflect all Gross Revenues, Aquatic Center Expenses, the Fixed Management Fee, and the Percentage Management Fee (if applicable) for such period. Such statement shall be certified as correct by an authorized officer of CONSULTANT. Such statements shall include a budget comparison, a variance report, and such other customary reports as may reasonably be requested by the designee of the City. If requested by the designee of the City, and at the sole expense of the City, these financial statements shall be certified by an independent certified public accountant acceptable to the designee of the City and provided to the City within 90 days after the end of the Operating Year. CONSULTANT shall provide to the designee of the City, within 30 days of end of each calendar month, that calendar month's payroll register by department and individual. If CONSULTANT fails to provide to the City any monthly or annual statement at the time and in the manner specified in this Agreement, this failure shall constitute a material default under this Agreement and the City shall have the right, in addition to any other rights or remedies it may have under this Agreement, to conduct an audit to determine these sales, and CONSULTANT shall immediately reimburse the City for the cost of the audit on written demand by the City. If the actual monthly or annual Gross Revenues shown by any audit of the City (whether hereunder or under Sections 16.5 or 16.6) is found to be three percent or greater than the amount of the Gross Revenues shown on the statement provided by CONSULTANT, or if there are any other material irregularities, the overstatement or such irregularities shall be deemed willful and the City may terminate this Agreement upon written notice given at any time within 60 days after receipt of the audit by the City. If at any time CONSULTANT causes an audit of CONSULTANT's business at the Aquatic Center to be made by an independent accountant, CONSULTANT shall furnish the City a copy of the report of this audit at no cost to the City, within ten days after CONSULTANT's receipt of the audit report. (16.8) CONSULTANT Payroll and Accounting Software: CONSULTANT shall provide the City with all computerized data in a format acceptable to the designee of the City. (17) Publicity: Any commercial advertisements, press releases, articles, or other media information using the City's name shall be subject to the prior approval of the City, which approvals shall not be unreasonably withheld. (18) This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attomey's fees and all other costs of such action. (19) Term: The term of this Agreement shall be from July 1, 2018 through June 30, 2019, or to such later date as may be agreed in writing between parties. This Agreement allows for four one-year contract extensions based on Contractor's performance and mutual agreement. (20) This Agreement shall be binding on the successors and assigns of the parties, but it shall not be assigned by the CONSULTANT without written consent of the CITY. (21) The CONSULTANT shall be an independent contractor, not an employee of the CITY. The services shall be performed by CONSULTANT or under its supervision. Consultant will determine the means, methods and details of performing the services subject to the requirements of this Agreement. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of CONSULTANT or any of CONSULTANT's officers, employees, or agents, except as set forth in this Agreement. CONSULTANT shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. CONSULTANT shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. (22) Prohibited interests are as follows: No officer, member or employee of the CITY during his tenure or one year thereafter shall have any interest, direct or indirect, in this Agreement or the proceeds thereof. The parties hereto covenant and agree that to their knowledge no member of the City Council, officer or employee of the CITY has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in business of the contracting party other than the CITY, and that if any such interest comes to the knowledge of either party at any time a full and complete disclosure of all such information will be made in writing to the other party or parties, even if such interest would not be considered a conflict of interest under applicable laws. The CONSULTANT hereby covenants that he has, at the time of this Agreement, no interest, and that he shall not acquire any interest in the future, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed pursuant to this Agreement. The CONSULTANT further covenants that in the performance of this work no person having any such interest shall be employed by the CONSULTANT. (23) To the fullest extent permitted by law, CONSULTANT shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of CONSULTANT, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the CONSULTANT's services, the project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorney's fees and other related costs and expenses. To the fullest extent permitted by law, CONSULTANT shall defend, with counsel of City's choosing and at CONSULTANT's own cost, expense and risk, any and all claims, suits, actions or other proceedings of every kind covered directly above that may be brought or instituted against City or its directors, officials, officers, employees, volunteers and agents. CONSULTANT shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, volunteers and agents as part of any such claim, suit, action or other proceeding. CONSULTANT shall also reimburse City for the cost of any settlement paid by City or its directors, officials, officers, employees, agents or volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City's attorney's fees and costs, including expert witness fees. CONSULTANT shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. CONSULTANT's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers, employees, agents, or volunteers. The CONSULTANT shall submit to CITY, prior to the issuance of the Notice to Proceed, certification of adequate coverage for "errors and omission" insurance in amounts approved by the City Attorney. Any such insurance shall not be canceled prior to written notice to and approval from the CITY. (24) The City shall not be responsible for payment for services by the CONSULTANT that are directly related to addressing discrepancies, errors, omissions, ambiguities, etc. in services provided by the CONSULTANT. (25) In case of conflicts within the contract documents, the document precedence shall be as follows: (a) This Agreement; (b) Request for Proposal issued January 10, 2018 (c) Exhibit "A" (CONSULTANT'S Proposal of Services, and any written modifications thereto). (26) This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both parties. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. CONSULTANT shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. (27) CONSULTANT has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective party. This Agreement may be signed in counterparts, each of which shall constitute an original. IN WITNESS WHEREOF, said parties have executed this Agreement the date first hereinabove written. CITY OF PALM DESERT Company Name Municipal Corporation Sabby Jonathan, Mayor Authorized Signature Date: Date: ATTEST: Rachelle D. Klassen, City Clerk APPROVED AS TO CONTENT: Ryan Stendell Robert W. Hargreaves, City Attorney Director of Community Development Family YMCA of the Desert Proposal to City of Palm Desert Aquatic Center Letter of Transmittal pg.1 Qualifications,Related Experience and References of Consultant .pg. 2 Management Approach (Tab 1) Key Personnel Proposed to Perform Work pg. 4 Proposed Subcontractors pg. 5 Staff References, Resumes, and Certifications Please see attached appendix pg. 1 Project Organization Chart Please see attached appendix pg. 13 Statement of Intent pg. 6 Proposed On-site Non-management Staffing Levels pg. 6 Proposed Services (Tab 2) Management and Operations of the Aquatic Center .pg. 8 Water Slide Daily Operation Checklist Please see attached appendix pg. 14 Weekly Cleaning Checklist Please see attached appendix pg. 15 Facility Rental Pricing Structure Please see attached appendix pg. 30 Sign Philosophy pg. 14 Recruitment and Hiring Process .pg. 14 Day to Day Operations and Training .pg. 16 Lifeguard In-service 2018 Dates and Policy Please see attached appendix pg. 31 2018 In-Service Training Schedule Please see attached appendix pg. 32 Lifeguard Training Program and Lifeguard Rotation Process ...pg. 17 11 Guard Rotation Map Please see attached appendix pg. 33 Program Development ,.pg. 18 Online Facility Calendar Please see attached appendix pg. 34 Pool Maps Please see attached appendix pg. 35 Swim Lesson Evaluation Form Please see attached appendix pg. 36 YMCA Program/Registration and Fitness Class Waiver Form Please see attached appendix pg. 37 LE I I ER OF TRANSMITTAL TO: Johnny Terfehr, Management Analyst City of Palm Desert FROM: Family YMCA of the Desert A. Robert Ballew, CEO Family YMCA of the Desert 43-930 San Pablo Ave. Palm Desert CA, 92260 Telephone No.: 760-341-9622 Fax No.: 760-779-9651 E-Mail: Desertymcaceo@aol.com B.None C. Our proposal will remain valid for no less than 120 days from submittal D. Signa a of authorized YMCA Representative Signs a of authorized YMCA Representative E. I a st that the information in this proposal is true and correct. Rob allew, CEO, Family YMCA of the Desert Page ; 1 YMCA of the Desert's current budget is $8,486,160.00. As of January 2018 our long term and fixed assets total$397,118.70 and we currently have $1,642,847.40 in reserve and savings accounts. Our total liabilities as of January 2018 are $491,173.16. This organization does not have any conditions such as bankruptcy, office closures, mergers, or litigations that would adversely affect it. Firm's Experience: YMCA's have always lead the charge in sports and exercise. Aquatics has been one of the strong points of the YMCA dating back to 1907 when the Detroit YMCA started the first organized swim lessons in the country.From 1907 to now the YMCA has taught more people to swim than any other organization in the country.The Family YMCA of the Desert has operated pool programming for 35 years around the desert. Including,but not limited to the city of Palm Desert and the city of La Quinta pool operations. We have provided trained staff, from lifeguards to swim instructors and management level staff from finance to HR,to run the complete programming and swim operations. In 2011 the Family YMCA of the Desert had the pleasure of assisting the city of Palm Desert in the development and the opening of the Palm Desert Aquatic Center. The Family YMCA of the Desert has been overseeing the operations and management of the aquatic center since its inception and for the past 7 years.The PDAC has seen as many as 115,000 guests through the gates in a years' time and few emergencies of any kind have happened. All emergencies that have taken place have been dealt with swiftly, professionally and with no loss of life.All state and county inspections have been passed. As well, there has never been a state/county forced closure to any of the pools, rides,or concessions. Proposed subcontractors: There are no proposed subcontractors at this time. Page 3 David has been instrumental in the development and expansion of all programming at the Aquatic Center. Mike Marshall, Maintenance Supervisor—Ongoing • Mike has been with the Family YMCA of the Desert for 6 years. He was hired to oversee the maintenance operations of the Palm Desert Aquatic Center. He has extensive knowledge and a daily working understanding of all pool and facility related equipment and maintenance operations. Vanessa Walker, CFO—Ongoing • Vanessa has direct oversite of all revenue and expenses of the Palm Desert Aquatic Center. She has been with the Family YMCA of the Desert for 16 years and was a key component in the initial budget development. She is the financial liaison to the city. Alisa Williams,HR—Ongoing • Alisa has been with the Family YMCA of the Desert for 10 years. As the Human Resource Director for the Family YMCA of the Desert she has employee oversite of all employees through the YMCA including the 60+staff at the Aquatic Center. Cassidy Hadden,Lifeguard Supervisor—Ongoing • Cassidy has worked for the Aquatic Center through the Family YMCA of the Desert for 2 years. She oversees the Lifeguard staff operations and trainings. Alexandria Espinosa Program Manager—Ongoing Page 15 Lifeguard staff increases as the bather load increases or conditions warrant. Swim Instructors—Preschool class age operates at a 1 to 4 ratio. Elementary class age operates at a 1 to 6 ratio. Keeping the instructor to student ratio is imperative for safety, learning, fiscal responsibility and best practices. All swim classes follow the Red Cross Learn-to-Swim curriculum covering ages 6 mo.-17 years of age. These include Parent-child, Preschool levels 1- 3,Grade school levels 1-5 and Rec Swim Team. Fitness Instructors—One instructor per adult fitness class. Classes include water exercise, yoga, spin, land exercise, masters swim,personal training, adult learn to swim. When a class has less than three attendees the class is cancelled. Front Desk—During operational hours there is always one or two people at the front desk depending on the season and busyness. They handle check-ins, answering questions, cash transactions,registration for programs,taking phone calls. Concessions—Concessions is open seasonally. During open hours there is always two and up to four staff members depending on the season and busyness. One staff takes orders and handles transactions,and the other staff member handles and distributes food. As business increases staff increases as well. All concession staff have food handler cards. Janitorial—Slow season October—March,there is one PT staff cleaning locker rooms, unisex changing areas and offices thoroughly 2x per week. Busy season April-September there are two PT staff sharing the work load 2x per week. Maintenance—Along with the FT Maintenance Supervisor two PT staff share a 24 hour work week as they clean deck space,pools,play structures and deck furnishings. Page 1 7 while engaged in surveillance. An emergency whistle code will be employed and understood by all lifeguards. o Rescue hip packs must be worn at all times. Packs will be adequately supplied with resuscitation mask and non-latex gloves. • Backup Duty Lifeguard o When not needed on deck or to assist customers,they check dressing rooms for behavior problems or horseplay. Assist in rendering first aid to injured persons, assist deck lifeguard as required,do clean up or maintenance as necessary. o If numbers do not justify a full complement of staff, the supervisor on duty may release excess lifeguards from work. • No lifeguard should work more than 8 hours in one day. • For all injuries, complete injury reports form(s) are required and passed on to the supervisor who gets it to the Aquatic Manager. See lifeguard rotation map appendix page 33 Water Chemistry: • Lead Lifeguard is required to check and record pool chemistry every 2 hours. • Water chemistry is adjusted by maintenance personnel as needed before opening,during duty hours and at closing. See forms used appendix page 21 Communication: Good communication is vital at the Palm Desert Aquatics Center. Communication includes verbal and non-verbal communication,hand signals, whistle blasts,radio contact,and written communication. Signs and brochures at the front desk communicate safety rules. Management Page 9 Concessions: The concessions stand adheres to all Riverside County health codes and regulations. All staff who handles unpackaged food has current Riverside County Food Handler cards and they are overseen by a Food Safety Manager. Concessions has consistently received an A rating from Riverside County Health. Locker Rooms: • Children 5 years and over must use the locker room of their own sex. If this presents a difficulty,family changing rooms are available. • Towel snapping, running, or rough play is not allowed in the locker rooms. • No food or drink allowed in the locker rooms. Multi-use Room:See attached appendix page 17 Financial Operations The Family YMCA of the Desert accounting department will provide financial operations including but not limited to; budgeting payroll,collecting,reporting, and accounting for all revenues and expenditures, and detailed budget preparation of all income and expenses statements. In order to achieve organizational accountability,reconciliations are completed monthly for all asset and liability accounts. Payroll is processed on the fifth and twentieth of every month. Accounts payable processes checks weekly and purchase orders are used for purchasing. All checks over$1,500.00 require two signatures. As well, financial statements are printed for department heads to review for accuracy and planning. The Financial Committee meets monthly and reviews the income statement, along with a balance sheet and cash flow for the organization. The income statement is then forwarded to the Executive and Board Committee for approval. Page , 11 • Incident/Injury Reporting • Injury Response and Emergency Procedures • Injury Response and Emergency Procedures for Slides • Minor Injury Procedures • Fire Emergency • Criminal Activity • Severe Weather and Natural Disasters • 'Thunder/Lightning Storms • Power Failure • Chlorine Spill or Leak Procedure Evacuation Routes—See attached appendix page 18 Emergency Action Plan Flowchart—See attached appendix page 19 Fecal Incident Response Log—See attached appendix page 20 Water Chemistry Test Log Sheet—See attached appendix page 21 Annual Pool Tarp Training—See attached appendix page 22 Policy Development The following bullet points have detailed procedures that the Family YMCA of the Desert developed for the Palm Desert Aquatic Center in 2011. These procedures are currently in use and stated in the Palm Desert Aquatic Center Lifeguard Policy and Procedure Manual (PPM). A copy of the PPM will be provided upon request. Page I13 within the community, depending on the positions being filled. We utilize high school and college job boards and actively network with leaders in the community or in their field to stay abreast of qualified candidates. High school water polo and swim teams are targeted directly to give youth of the community job experience opportunities utilizing the skills they have mastered through their teams. We've ensured that the job description for each job being filled is accurate and current and identifies the core competencies needed for the job. We've established a written screening process that ensures all hires meet the YMCA's highest standards and possess the core competencies for success in their positions at the YMCA. Systematically we use screening techniques, the employment application,background checks, reference checks,etc.—to screen out applicants who are at risk to abuse youth or vulnerable adults. We've developed and maintain an updated recruiting plan to anticipate and meet the YMCA's current and future staffing needs. We employ a variety of legal, effective tools and techniques, beyond the basic interview, to assess a candidate's qualifications for the position; this may include online tools, interview guides, phone screening, swim testing etc. The minimum age for employment is sixteen(16)with a valid work permit. All employees over the age of eighteen(18)are to be fingerprinted upon hire. After fingerprints have been processed through the State of California Department of Justice, and FBI,results will be received by the Human Resource Department and held confidential. Continued employment is subject to fingerprinting clearance. Any employee is subject to termination of employment if the Criminal History warrants such action.Additionally, employees must notes the Association of any arrest and/or convictions other than minor traffic violations, within five (5) days. Failure to do so may result in disciplinary action up to and including termination. The YMCA recognizes its responsibility to help provide a safe and productive work environment for all employees. In Page 15 Refer to Key Personnel and Proposed Work and Proposed Non-Management Positions(pages 4- 8)for the staffing plan. Refer to the Recruitment and Hiring Process(page 14)for the orientation process. Pre-Service and In-Service Training Plan: Refer to the Recruitment and Hiring Process and the Lifeguard Training Program,(page 14, 17). Lifeguard In-service 2018 Dates and Policy-See attached appendix page 31 2018 In-service Training Schedule -See attached appendix page 32 Lifeguard Training Program and Lifeguard Rotation Process—Employed lifeguards shall hold in good standing the American Red Cross Certification for lifeguarding also known as lifeguard for the Professional Rescuer which includes Lifeguarding, CPR,AED and First-Aid. In addition to this certification,guards who have guarded for a year or are returning after one season must have and maintain a Title 22 certification. Swimming ability is one of the most important prerequisites to become a Red Cross lifeguard and guard at a pool with a depth of 15 feet. The guard must be able to swim breaststroke and front crawl and have the endurance to swim for long distances during the testing process. The swimming test includes 300 yards of non-stop swimming, 100 yards of front crawl, 100 yards of breaststroke and another 100 yards of either breaststroke or front crawl. Because of the depth of the pool, guards are also required to perform a time trial test consists of swimming 20 yards, surface diving to 15 % feet, retrieving a ten pound weight,and treading with the weight held out of the water with both hands on the weight 20 yards back to the starting point,placing the weight on the deck and exiting the water from the deck going into a standing position in 1 minute and 46 seconds or less.In addition to Page 117 user groups rent out space and we adjust operational hours as it is financially beneficial. User groups have the opportunity to rent space at the facility with a 24 hours' notice. All of this requires the pool schedule to be fluid. Programs are scheduled using an online calendar that is shared with the general public.See an example attached appendix page 34. Detailed lane availability is also put on a MAP. See example in the attached appendix page 35. How to make swimming classes responsive and/or inclusive to persons with disabilities: 1. Safe entries into the water via a hoist, lift, or supported entry down a ramp. 2. Specific instructions for aids in the water, so they can help with activities for children with physical disabilities in a planned and structured way. 3. Information for people with disabilities in the class,particularly if they are swimming for the first time at the facility. 4. Group activities for people with physical disabilities which take their needs into account (eg.rolling front to back, learning to maintain body position, being comfortable using an aid to float). 5. Individual activities which are designed as an exercise for people with a disability, such as push off from the wall and float into a glide position, or doing a safe slide into the pool,or learning to propel in the water wearing a life jacket. 6. Swim class lessons planned in advance to best accommodate children with disabilities without compromising the skills they will learn. 7. Safe exit from the pool. Monitoring and evaluating programs for improvements and fiscal responsibility: Page 19 Marketing—The YMCA will use various forms of social media to keep all audiences engaged throughout the year. Target audiences will vary based on the season.March-September we will target families for our group swim lessons,and recreational swim. Public and Private schools are targeted April-June for school field trips and full facility rentals. The YMCA advertises through our website,social media, constant contact, and has recently purchased billboard space to advertise the Aquatic Center. Procurement Planning Proposed Services—Our standard purchase policy would stay in place, for items over$1,000.00 we would require 3 bids and PO's need purchaser's signature along with those of the department head and CEO. Items are inspected at time of delivery and once accepted that are logged in as assets. The YMCA will continue to write grants to enhance equipment for programs, life-saving equipment,first aid supplies, lifeguard supplies and facility management supplies.Labor needs will be handled by our Human Resources department. We advertise our available jobs to the public through a variety of announcements. Selection is based on qualifications; we do not discriminate due to race,age,religion or sex. Furthermore, Aquatic positions may require several certifications and those will be inspected for current status. All YMCA employees are fingerprinted and checked through the State Attorney General's office for any convictions. All new YMCA personnel will receive child abuse training and certification along with first aid and customer service training. Safety training will be ongoing on a weekly basis and simulated emergency drills will be conducted on a regular basis. Fee Schedule The City developed a fee structure for general admission in 2011 that is still in place and has not seen any increases. We suggest that a cost of living study be done to look at possible fee Page 121 Family YMCA of the Desert Proposal to City of Palm Desert Aquatic Center Index Staff Resumes and Certifications pg.l Project Staff Organization Chart pg. 13 Water SIide Daily Operation Checklist pg. 14 Weekly Cleaning Duties Checklist pg. 15 Facility User/Staff Checklist pg. 17 Evacuation Routes ..pg. 18 Emergency Action Plan Flowchart pg. 19 Fecal Incident Response Log ..pg. 20 Water Chemistry Test Log Sheet pg. 21 Annual Pool Tarp Training pg. 22 Swim Testing ..pg. 23 Facility Rental Policies pg. 25 Facility Rental Group Use Requirements pg. 26 Facility Rental Pricing Structure .pg. 30 Lifeguard In-service 2018 Dates and Policy pg. 31 2018 In-service Training Schedule pg. 32 11 Guard Rotation Map ...pg. 33 Online Facility Calendar pg. 34 Pool Maps pg. 35 Swim Lesson Evaluation Form pg. 36 YMCA Program/Registration Form and Fitness Class Waiver Form pg. 37 Fee Schedule ...pg. 38 Aquatic Front Desk Manager January 2012—April 2014 Family YMCA of the Desert Palm Desert, CA • Managed Front Desk staff and operations • Implemented ongoing policies and procedures • Hired, evaluated, disciplined and terminated Front Desk staff as necessary • Trained staff in customer service and the P.O.S.system Aquatic Front Desk and Concessions Manager April 2011—December 2011 Family YMCA of the Desert Palm Desert, CA • Created rates for retail,food and beverage items • Oversaw merchandise, inventory, purchasing,and handling food • Oversaw both front desk and concessions staff • Trained concessions and front desk staff prior to the facility opening in customer service and P.O.S.system CERTIFICATIONS: • Aquatic Facility Operator(AFO) • American Red Cross Lifeguard Instructor • American Red Cross Lifeguard/CPR/First Aid/AED • American Red Cross First Aid for Public Safety Personnel(Title 22) REFERENCES: Karen Creasey karen( karencreasev.com (760)218-3640 Former Palm Desert Aquatic Center Manager Mario Garcia (714)681-3041 Knorr Systems Inc. Field Supervisor Stephanie Greene stephanie@fgcreative.com (760)773-1707 CEO FG Creative Laurie King (760)641-9099 Lap Swim Patron Appendix Page 12 Mike Marshall 52290 Silver Star Trail • La Quinta, CA • mmarshali.vmcaPgmail.com • 760.504.5108 EDUCATION: Bachelor of Arts in Early Childhood Education Graduated 2003 San Diego State University San Diego, CA San Diego Fire Academy 2008-2010 Miramar College San Diego, CA EXPERIENCE: Maintenance Supervisor 2012—Present Family YMCA of the Desert Palm Desert, CA Owner/Operator 2009—2011 Precision Aquatics San Diego, CA Technician and Repair Manager 2005—2011 Golden State Pools San Diego, CA Technician 2002—2005 Guaranteed Pools San Diego, CA Technician 1998—2003 Bills Pool Service San Diego, CA Lifeguard 1994—1999 Scripps Ranch Swim and Racquet Club Son Diego, CA CERTIFICATIONS: • Aquatic Facility Operator(AFO) • Certified Pool Operator(CPO) • American Red Cross Lifeguard Instructor • American Red Cross Lifeguard/CPR/First Aid/AED • American Red Cross First Aid for Public Safety Personnel (Title 22) • Lochinvar Heater Certified • Scissor and Boom Lift Certified • Professional Pool Operators of America(PPOA) • National Recreational Parks Association(NRPA) • Heating Vacuum and Air Conditioned Trained PROFESSIONAL SUMMARY: Certified Commercial Swimming Pool Operator with over 20 years of related experience. Detail and result oriented, hands on professional. High energy,goal based leader with 5 years of on-site management of facility and staff. Core Appendix Page 14 . Anthony Bingham tonvbinghamsd@gmail.com (858)386-2676 IT Manager-City of Dallas, 7X William Howell whowell@williamihowell.com (619)994-2398 Attorney ��SIFV ccr,,„ors "-..� YS(1 _4 � olRcucation and Pra,gss 0 Mike B Marshall ((;::\::I‘sps••i•de••tl•.•.‘i....1i.0...i...m.._1d.O1i11.� !� r `— -ra-•q/ Aquatic facility Qpcmtor l [ W.q5 i.0 41111e4:: i1 uw011,2., 11^v •\'�• 11••M..YJI !:.......At. 11 1 Iu. { ',it..., .' t. ti lk. L.�00 0lnae - t IV .L American Service Training Certificate T, Red Crosa • ll.f►..o r t..dr T►.r t f ._ Mike Marshall a - �' "'` _.- Certificate of Completion T.JW emirs a.6..1 cJ I'..1' Jnl f i "•1.Poe... • ' i n a.nca.... ��.d.r.u\l.1.. , Mike Marshall ).� su.W.e..Q1+Iw1 s1..1...1�.•,1..... 1 add accestay eceresMed le h..mmcs a 0M+/Mers ey(...wen'✓.,.v.. .i _ L'fepandecFeu A6tHL'AED.aid 2Teen,yc; grs*.11R1:.�dL i.• Pool Neuttr.Ser kr S.•.Faar ctn:WOW tY �,�, /�1 ��77 Amman Red Cron 3'1i.": ele.. , g(- /4/,. Aaw,..Id tlr a...r'/ Y'." D.leC .'.d o1.�1�:2IT -�'��w.'• un✓uc»n pavd x.ps c....o c..ae. Ch.l...4. t,.Yin\i[t N.A.. t. `�ii. taw.. t.rt .1 • .7,\. I'!. TfIY 11• 1 .. .1f. I e.rr.+ - .1:' {L?.4.4(r)., I {ka .L American ... American T Red Cross T. Red Crass Certificate of Completion Certificate of Completion Mike Marshall Mike Marshall raf fuet.t32 Iy c2toletad'immure,'nr hes'accessibly cmpef.d regcaarwds la UapbavengT.9 Aq VR.•AEO•vallf 2 Y Emerge,-Y O .•vald 2 Yeenezod:une Pa7e9ar4 TrKr .veld 1 Yea rot Md b?to Peesolrel lime 12)•veed 3 Yeas eal.q%arcrg!nimbi.q9d 2 Years craxlW ay conaa<ml De Memnon Rod Golf Mmcan Rod Goss _ .k. Dal.Convivial ce24.2Crd it-. OM Comptide 1 L'16.2017 ,llt,_ unrxt et Kasen C.ew, wee..a ema. heCuctars Kann Gorier Csatmril a.se I...e1 K.,*,..a Tb.r*as.Es..a.r ...,..-,.-.- 10,4'»...^ Appendix Page 16 • Schedule appointments for a large medical practice. • Multi-task in a fast paced environment. CERTIFICATIONS: • American Red Cross Lifeguard Instructor • American Red Cross Lifeguard/CPR/First Aid/AED • American Red Cross Water Safety Instructor • International Food Safety Manager • American Red Cross First Aid for Public Safety Personnel(Title 22) REFERENCES: Veronica Bayne bav603( aol.com 760.485.3078 Las Palmas OB/GYN—Office Manager Ed Lerma ed( lggsprimesteakhouse.com 760.771.9911 LG's Prime Steakhouse—LQ Manager Kathie Maxwell connectionsareusPhotmail.com 415.990.7693 Palm Desert Aquatic Center—Private Swim Lesson Client American American Red Cross Red Cross Certificate of Completion Certificate of Completion Alexandria Espinosa Alexandria Espinosa nes 4Kceaanely ceeryle d ieesutmenu hr Nu stccnestay compenaal npesvuento cor les,aneny2'rst AAl'CPF/ACA-vale 7 Test Wety SaMY IN?Jtb Court*-wee 2 Taus canketed W canNCLd by Amax an Rea Ct011 .13 IKarc en Red Close Due Canpete•J D11211011 • OJtleCmpnoa 04.bb'YJ17 c',.•: laanucterr Owls Keyes ammo wro L1Sblxn. 1edi Tea hePICA c..rr¢ts•• lwri a+>m.►wc to rf.Whir•.w n..YNar'I nEV'..l.�V.a^e+ 141) Q. t NATION AL REGISTRY OF Foots SAFETY PRoFESSIONALS4D America Red Grossn ALEXANDRIA RENEE ESPINOSA �—,i+ NAs Suceeseruuv^.An•Fneo Ts.t[Reouutyem ro.I TII• Certificate of Completion r INTERNATIO M NAL Poop SAFETY ANAG et: UNDER 00TN Alexandria Espinosa CONFERENCE FOR FOOD PROTECTION STANDARDS net t.cessb.►y cave*:nsaummotsW AND LSO/tEC 1702A STANDARDS LdApusetp Insautc.lad 7 Teen matinee try Aro-leen Rea Ccelt ey..ST, rr A PRCSgfNT: �-- Data Concatee or:szo'1Y ,�~•"• I.-� i. 1 ta LAIYRCHCLJ LTROI CAE tnstnxmz Kahn Geesey rwewo Goa Wm, ••• •:7:" I34JC DATC JIILT 2D.2017 �T.Mp...ere•.Y ... Exy-PeATIoN DATt'JUL,20.2022 -f..•.•-q CeR MCATII No:2I3472ON ..c,..,....aaL...r y: Tarr rorPCISO1D • American Red Cross Lifeguard Instructor • American Red Cross First Aid for Public Safety Personnel (Title 22) REFERENCES: Rene Hickey info@renesaquatics.com 760.329.3212 All Desert Aquatics, Inc.—Aquatics Director Bob Bell bellbob@hotmail.com 760.880.5135 Ecclesiastical Leader Kyle Pleming kplemingPdrd.us.com 760.972.1033 Desert Recreation District—Aquatics Director Leslie Greasby beachbabv61@ttmail.com 562.631.7774 Coachella Valley Unified School District—Lifeguard Juba!Lotze juballotze@gmail.com 619.955.3530 Director of Institutes .i, American .j_ American T Red Cross 'T Red Cross Certificate of Completion Certificate of Completion Cassidy Hadden Cassidy Hadden na surnsrtay canUdsud taoo.aments b nes S.K2eutugy sonpMad toquolonOots lot ooat-orar Poengsm Trarrec•NO,J 1 YurAdn .i v'U Eme*pexy Orryan•vafd I YsrfU,gu$fl Tnt AE CPP,AED.said 2 Vows Lioperdog ustru:me•veld 2 Yews co:Wool by c0noxia0 by Ammon R rd Cost Moms Red CtOS$ r: Date CQnUe.3 O4222017 1 ttte.: 17 Oau Compbrca D Mucous Ir%%nog ufa.•o scan trsrucm s Ksen Creamy a.swo a ss✓ *aloft.w tam a.or T.w,r..n,w.v.sa fs.=.MOW., ROM. er• American American Red Crises Red Cross Certificate of Completion Certificate of Completion Cassidy Hadden Cassidy Hadden has successhty Lamle/El nrwrrnens to Om cassLSy comoa100 rocusemrrt 4x Wales Solely eselcta Consover,R.-Eiery.said 2 Yeas Fret Ast b Purr c Satay Osrwv d)T.ae 22)-rats!O Yuri cdnrnc7e0 h csical 0 W Ammo Rod C.on S:. Morton Red C1au 7 t.' Ufa CzerVotea OC'1MO le -4.2 NO*CaaWud 0111772017 tortuous Rena S HALM/ a aw D frail✓ lnsaxIars Kann Cauey c.rwo :VOA,S$uaa ar.ac 1$I 1 wsaaern ns'a.ar.rere�. +'•nwa �• Appendix Page 110 • Complete forms in accordance with company procedures. • Review work done by others to check for accuracy and ensure that company format policies are followed, and recommend revisions. • Prepare and mail checks • Order and dispense supplies SKILLS AND CERTIFICATIONS: • Troubleshooting • Food and Merchandise Purchasing • Accounts Payable and receivable • Staff Supervision • Customer Service • English Language • Self-Motivator • Riverside County Food Handler Certificate • Operation and Inventory Control PROFESSIONAL SUMMARY: Accomplished and energetic Administrator.Motivated with strong organizational and prioritization abilities.Areas of expertise include Customer Service, Inventory Control,and Maintaining Cash Handling Policies and Procedures. REFERENCES: Carol(Boeddiker) Marx 707.812.3796 Tom Boeddiker 650.867.5449 Karen Creasey 760.218.3640 1, 1 1,8 1.4,6<t••r t,p n:_1.tr.f•<t.-}l•;....r _...•� .... Katherine Lorenz (.. ..1,.. .1 41 af36bf-hdb4O b *ler1:cc.r..fi lir it • n I Appendix Page 112 Water Slide(s)/ Pool Inspection Daily Operation Date: Technician: BEFORE SLIDES ARE TURNED ON: Test"e" Stop for Proper Operation Clean and remove any trash or debris on stairs and platform Visually and Physically inspect stairway,ramps and tower structure for any lose bolts,joint movement, stair cracking, loose or missing caulk, and any other unsafe structural issues. Record and report any findings to proper maintenance personnel Wallc/crawl both slides with bare feet. Check for debris or obstructions, chips or cracks,bubbles on slide surface, rough seems, and slide joints missing caulk material. Verify rubber guard over lip of closed slide entrance Check all signage intact and not faded (height, rules, occupancy, weight requirements) 48" Height requirement ruler on base of stairs and top platform Check swimming pool water levels Check and Record Recreation Pool water sample, record in log book Verify Location of all related safety equipment (Backboard, Life Ring and Hook) Inspect and verify pool drains intact and not loose - Lifeguard required in water with bare feet AFTER SLIDES ARE TURNED ON: Check and record slide flowmeters- Blue/Open: White/Closed: Report any leaks in plumbing slide joints Report any unsafe conditions to supervisor Air Horn and Rescue Tube to top of slides guard station Appendix Page 114 Weekly Cleaning Duties Check List LLG Initial: ��-...r.Kw.te Moe Tees Ved Tiers Fri Sat Sea j I Chair: M Table: O Spider Web:. OIM Ho:c M i...rI1..:/.t..►.•• n.1s;....a... oIM Tra:A OIM RArtiek Betl.rsrm rofm Swap Bathroom OM Toilet 01M Sink: oft Mirror O Vacuum Carpet O Chair: O Table: O Window:(bide) Parkiag Lot A Tra:A Can O Window: FA Tra:b Pickup M Sweep Entryway M Ho:c Entryway O ....,.a.,.e..•••.... O ......r............. First Ail Roam A Tra:Is A Rwrt.ekB4throont A Orgsnir.B4thr..m A Sink A Toilet A Swap A Table: A Refrigerator A Chair: A Locker: I A Laundry t l I A Organize Room I A R.•trtlCl ••N_►•.5. JIJ-MZ'ay V=egos..? .4= 9'' Appendix Page 16 EVACUATION ROUTES Evacuation route maps have been posted in each work area. The following information is marked on the evacuation maps: 1. Emergency exits 2. Primary and secondary evacuation routes 3. Location of fire extinguishers 4. Location of AED 5. Assembly points 6. Site personnel should know at least two evacuation routes. Cin•ojPo,“Desert Civic ter Aquatic Center • PARKING .: ...'_a< • aro nawnar 1�.No7• AI$• * t _• : t - ri — al 4 • Aquatic.-- Center 1 L__.i _1 1111 i F...c n;.star•.na I N::ra.1.13 613,c• �+ a?an>(I _•.a:,3C::1:414•.YH•Fa** p4.41"Lee:4 2.1 4P,11 Appendix Page 118 'MICA Palm Desert Aquatics Fecal Inci{lent Response Lou Person Conducting Contamination Response Supervisor on Duty Date(mm/sigke y)of Incident Response Time of Incident Response water Feature or Area Contaminated Type/Form of Contamination i Water: Fetal Incident (Formed Stool or Diarrhea),vomit, Diced Time that Water Feature was Closed Staba&zer Used in Water Feature(Yes/No) Water Quaky Measurements c... 1 2 3 4 u &Pm.to Caw 4esenm-a Free Residual chlorine (1-4 are measurements spread evenly thru the closure time) PH (1-4 are measurements spread ever*thru the closure time) Date(mm/ )that water Feature was Reopened Time that Water Feature was Reopened Total Contact Tone (Time from when dairdectant reached desired level to when dainfectant levels were reduced prior to oPerinYr) Remedntion Procedure(s) Used and Comments/Notes Appendix Page 120 Annual Pool Tarp Training Name: Title: Date: Training Time: am/pm TO am/pm -Staff Member use only- I, ,have become familiar with the operations of the tarp reels. I am confident in my knowledge concerning tarping and un-tarping the pools, covering the tarp reel,using the hand cranks, anchoring the reel with the safety stop,and having demonstrated this to my supervisor. I have properly demonstrated tarping procedures under my supervisor's supervision and will maintain all the rules from here forth. -Tarp Supervisor use only below- I, , do affirm that this employee has been visibly observed to have the ability to properly tarp on all pools. This employee has demonstrated the ability, knowledge, and confidence to use tarps in accordance with the Palm Desert Aquatic Center operating procedures and is authorized to tarp the pools. Supervisor Signature: Date: -Un-Tarp Supervisor use only below- I, , do affirm that this employee has been visibly observed to have the ability to properly un-tarp all pools. This employee has demonstrated the ability, knowledge,and confidence to use tarps in accordance with the Palm Desert Aquatic Center operating procedures and is authorized to un-tarp the pools. Supervisor Signature: Date: Appendix Page 1 22 It is up to the lifeguard conducting the test to determine if the swimmer is strong enough to be safe in deep water. 10. When is the swim test conducted? On a busy day, swim tests are conducted on a regular schedule such as every 15 minutes,or every hour. However,a lifeguard may provide good customer service by offering a swim test at any time they are available to do so. 11. What if a customer does not pass the swim test? They are not given a bracelet so they must swim in the shallow areas. They may try again at a future time. Appendix Page 124 PDAC Facility Use/Rental Requirements USERS agree to abide by the following space payment requirements: 1. USERS renting the facility on a consistent basis will be required to pay the full monthly rent by the I.' of each month or by the date on the current invoice for the current month use. 2. Nonpayment may be sent to collections and may result in denial of subsequent applications for all future use of any PDAC facilities. 3. If the full monthly rent or any other charges are not received by the CONTRACTOR on or before 5 business days after the full monthly rent due date,the USER must pay a$50.00 late fee in addition to the full monthly rent. 4. All payments must be received by the 5th business day of the immediate month following use. Note: if the payment is late on or before the 5th business day of the month the Iate fee will be charged. 5. A$150.00 security deposit is required upon acceptance by Contractor of this Facility Use Agreement to rent facilities. This deposit can be applied towards the first month's rent(if long term agreement is accepted)or be returned to USER within 2 working weeks following event providing no damage to property was incurred. Under certain approved circumstances, CONTRACTOR may waive the deposit. 6. Sub-letting of any and all space to any club or organization other than the USER appearing on this agreement is strictly prohibited. 7. Any facility space booked after hours may be subject to increased rates. 8. A 30 day advanced notice is required for termination of this contract. The last month's rent payment will be expected to be paid in full 9. A 24 hour notice for lane or use additions and/or cancellations is required. If a 24 hour cancellation notice is not given the USER will be charged for lanes and/or use booked for that day. Contracts can be initiated with 24 hour notice, provided there is space available and all contract requirements are met,with an additional charge of three times the regular rental fee. 10. The accepted forms of payment are: Cash,Check*,Visa,MasterCard or American Express. Payments must be made at the Palm Desert Aquatic Center or mailed to The Family YMCA of the Desert Attn. Palm Desert Aquatic Center. 43930 San Pablo Drive Palm Desert CA,92260 11. Return checks will incur a$50.00 fee. 12. USER shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation,blanket contractual liability.CONTRACTOR&CITY,their officers,officials, agents, and employees shall be included as insured on the policy. USER shall file certificates of such insurance with the CONTRACTOR/CITY which shall be endorsed to provide thirty (30) days' notice to the CONTRACTOR/CITY of cancellation or any change of coverage or limits. If a copy of the insurance certificate is not on file prior to the event, CONTRACTOR/CITY may deny access to the facility. USER shall report any personal injuries or property damage arising at any time during and/or arising out of or in any way connected with USER's use or occupancy of the CONTRACTOR/CITY facilities and adjoining property to the CONTRACTOR Manager or his/her designee,in writing and as soon as practicable. Appendix Page j 26 PALM DESERT Aci4JATIC CENTER CODE OF CONDUCT: The Palm Desert Aquatic Center (PDAC) is owned by the city of Palm Desert, but the day-to- day management of the PDAC is operated by the Family YMCA of the Desert (YMCA). The City of Palm Desert provides the daily Admission Fee structure, the direction to bring in outside groups and teams, the finances to operate the facility, and input on some policy issues. The YMCA staff is in charge of setting operational policies and procedures, rules and regulations, and providing oversight of safety and use. Program fees (differing from daily Admission Fees) are set by the YMCA in consultation with the City of Palm Desert. While on the deck of the PDAC, all patrons renting facility space must adhere to the following Code of Conduct: 1. The PDAC encourages an atmosphere of working together with mutual respect between staff and all patrons. We expect all patrons and staff member's to treat each other professionally, based on mutual respect,trust,and individual dignity. 2. It must be viewed to be a privilege to use or work at the Aquatic Center. Failure to utilize or work at the facility professionally, or discuss issues professionally can result in dismissal from the PDAC. 3. Bullying will not to be tolerated in any form.(as defined by USA Swimming) 4. Aggressive and/or abusive behavior and/or profanity is not permitted. 5. The Aquatic Manager or her/his designee has complete authority to close the pool if safety is a concern or for the following reasons: • Water temperature • Unsafe Weather Conditions • Water quality • Structural,equipment failure, or maintenance requirements • Full facility rental or special program use warranting a closure b. The Aquatic Manager or her/his designee will make concerted efforts to communicate pool schedules, maintenance issues, and pertinent information to coaches and patrons. Please direct all concerns and/or questions to the Aquatic Manager. 7. For all user groups that are coached: Coaches must sign in at the front desk upon arrival. All subsequent program users are also required to check-in at the front desk upon arrival. 8. Swimmers with a group/team swimming in rented space are not allowed to enter the water until a coach is present on deck. 9. All program coaches must sign off on Lane Use Sheet following program use. 10. All patrons must comply with facility rules,policies, and procedures at all times. 11.All user groups are expected to be considerate and clean up after use while at the PDAC. 12.In the interest of swimmer safety, coaches and patrons must refrain from engaging in conversation with or distracting lifeguards while they are on duty. 13. It is expected that all coaches, staff, and users give and distribute accurate and true information regarding the PDAC facility, the users of the facility and the use of the facility. Appendix Page 1 28 • 2S lard-Recreational Pool ! SO Meter Compsptic•e Pool • SS.00 per Lmepabou.r25 yard short course 05yards) SSOO per lsaeperhour short cotsse • 5S5 DOp hr."'$110.00p hr'"for slides (25 yards,un-ezclin ve pool use. • SSOAOp ha*JS105.0Ophr"•for 25 yard short course lane me • SIO.00 per limper how long course • (all five lanes)with:MD depth pool(does not inclade terapy" ' - (5araeters,00a-ezclusr•e pool use) catch pool) •Esdudve use of the shallow section: For use of the entire recreatioml pool with slides: • • 335.00p,hz.•1S45.00p hr." • S 155.00p hr.'i Sl SO.00p hr."'for less than 50 Exclusive use of the diving boards S 150.OJp h•.•!52'05.08p hr•'for 51-i 5 • S S D 00ple••S 1o5.00p hr.•' • S205.00p In•!S230.0Op hr."fa-6-100 Exclusive use of the entire 50 meter competition pool • S230.00p 1s.•15255 OOp hc"fee 101.125 • •without diving boards or starting blocks: Please Ball 5:,r poops larger than 125 people 5330.03p hr.•: 5430.00p-hr.•• General Pool Infarntanon Exclusive use of the entire 50 meter competition pool • The two slides can be used with this pool :With diving boards aadlorstarting block= (one closed albs side and or.*open tube slide) • S 3S0.0Op hr.•'S505.00p hr.•' • Pool nr be-aced h three:smote sac:on:: • -zero depth entry wadin;pool(typically used for duabil-' General Pool Information sr:elan and parses-chdd classes) • Pool may be turd into(16)25 yard short coarse lanes or • One tterspy pool:typically used for therapy ad SAID (3)50 meter long court a Imes bits excuses, Pool has G)1=eter diva:;boards and C)3 meter dis xg • (5)25 yard short course lanes t_•yfeally used 5srlap boards swim • Pool is 3'6••to 4'6"as the shallow end end progresses to • P;at typically operates at a tctpera:a*of S4 dare=. 15'6'•at the deepest ezrt Splash Playground: • Pool typically operates et a teaperaaue of S 1 degrees • SS0.00phr.•;S105.00p 1st•• • dxhe'Jcrr_itcLivz_ ••en.px:do: • Fnfm r 4:Rc:der_• •a voYe tidy tall Faditt Rental .• S 6C0.00 p hrS-51/4"..00 p .a .• Full facility rental includes recreatinpool, 50mpool,dt- • in boards,water slides,splash playground,locker rooms, • and multiuse room. • Full facility raatals are made by request,and spprovalmust be �snted. • A minimum of 2 hours must be rented. •Home Team Swim Meet Rental Rates • Home team meet fee is S2600 CO for the day. This includes ; 4 l.i.ieruards.I M .n a;?r on Duty gift Super ,nor, 1 Front Desk staff • • Facility mana_amentresery the right to requse additional lifeguards at S20 per hr. I Pa:Y Dew Appendix Page ] 30 2018 In-Service Training Schedule January 13th February 10th March 10th April 14th CAP(review/first time) Chapter 3 - Chapter 9- Chapter 2 - Surveillance and Chapter 10-First Aid Recognition Cardiac Emergencies Facility Safety Reports and Forms Fecal Rule/Policy Enforcement Contamination Simple Active Extrications w/CPR Spinal SWIM Rescues May 12th May 26th June 14th July 14th Chapter 11 - Chapter 1 - All Staff In-Service Chapter 4 - The Professional Caring for Head,Neck Lifeguard CAP(first time) Injury Prevention EAP drills w/Front Desk Chapter 10-First Spinal Injuries Chapter 7- Staff Aid Before Providing Attendance Policy/Calling Care Out Scanning Drills/Zone and Victim Policies and Coverage Assessment Procedures Spinal SWIM SWIM Rule/Policy Enforcement July 28th August 18th September 15th October 13th Chapter 9- Water Polo Set-up Chapter 3 - Tarp Training Surveillance and Cardiac Emergencies Paper Plate Awards Recognition CPR Practice Stroke/Heart Attack Weather Reminder SWIM November 10th December 15th Chapter 9- Chapter 1 - The Professional Cardiac Emergencies Lifeguard Chapter 8- Extrications w/CPR Breathing Emergencies Conscious and SWIM fully clothed Unconscious Choking SWIM Appendix Page 132 Tue Feb 6 5.30am-7.00am IT Piranhas -Lap Pool Lanes 6-8 t 4 8:15am-9.15am Restorative Yoga-Multi-Use Room CI o 8:50am-9.45am Deep Water Exercise-Lap Pool Lanes 12-16 CI :o 10:00am-10:45am Arthritis Water Exercise.Rec.Pool CI 0 11:00am-4:00pm Desert Swim Academy -Rec.Pool Lane 5 0 o 3:15pm-5:45pm E Xavier Water Polo -Lap Pool Lanes 9-16 CI rr 3:30pm-5:00pm E PDSC -Lap Pool Lanes 1-8 CI 4:00pm-5:00pm PDSC -Rec.Pool Lanes 1-3 t3 4:00pm-5:00pm a Desert Swim Academy -Rec.Pool Lanes 4 t? o 5:00pm-6:00pm .7 PDSC -Lap Pool Lanes 1-6 CI o 5:00pm-6:00pm Desert Swim Academy -Rec.Pool Lane 5 Q 6:00pm-6:30pm 7E'PDSC-Lap Pool Lanes 3-6 0 0 6:00pm-7:00pm Tritons -Lap Pool Lanes 9& 10 0 0 6:15pm-7:00pm E. Shallow Water Exercise- Shallow End&Lanes 1 &2 CI 0 Wed Feb 7 5:30am-6 30am C Tritons-Lap Pool lanes 7&8 CI 0 8:00am-10.00am '='Tritons-Lap Pool Lane 3 L] 9:00am-9:45am Shallow Water Bootcamp -Rec. Pool CI 0 10:50am-11:45am C Deep Water Boot Camp- Lap Pool Lanes 12-16 CI 0 11:00am-12.00pm PDAC Masters -Lap Pool Lanes 6-8 tEl o 11:00am- 1:00pm - Management Meeting -Multi-Use Room CI 0 3:00pm-5:00pm PDSC -Lap Pool Lanes 1-6 Q 0 3:15pm-5.45pm Xavier Water Polo-Lap Pool Lanes 10-16 O 0 3:30pm-4.30pm PDAC Rec. Swim Team -Lap Pool Lanes 7-9 t3 :0 4:00pm-6:00pm PDSC -Lap Pool Shallow End Lane A t3 0 5:00pm-6:00pm r PDSC-Lap Pool Lanes 1-8 0 X0 6:00pm-7:30pm Piranhas -Lap Pool Lanes 1 &2 CI 0 6:00pm-8:00pm Scorpions Water Polo-Lap Pool Lanes 7-16 tEl 0 6:30pm-7:30pm Piranhas -Lap Pool Lanes 3-6 C] 0 7:00pm-8.00pm Tritons-Lap Pool Lane 4 0 .0 Appendix Page 34 Swim Lesson Evaluation Form Thank you for joining the Palm Desert Aquatic Center this session we have enjoyed working with you and we hope to see you again! Please fill out this evaluation of our program as we would love any feedback provided! Thank you and have a great day! Participant Name: Participant Class time: Participant Class name(Please circle): Parent-child A B Pre-school 1 2 3 Level 1 2 3 4 5 Rec. Team Instructor Name: Date: Did your child enjoy his/her instructor?(1 lowest, 10 highest) 1 2 3 4 5 6 7 8 9 10 Did your child's swimming abilities improve while in the session? 1 2 3 4 5 6 7 8 9 10 Did your child enjoy this class? 1 2 3 4 5 6 7 8 9 10 Was the instructor on time and prepared for the lesson? 1 2 3 4 5 6 7 8 9 10 Would you return for another session? Yes No Would you recommend this program to a friend? Yes No Any additional comments: Appendix Page 136 Fee Schedule: General Admission Non-Resident-$165.00 Adult(13-59) Palm Desert Resident-$4.00 Adult Annual Pass Non-Resident-$6.00 Palm Desert Resident- $550.00 Non-Resident-$825.00 Youth/Senior(6-12 & 60+) Palm Desert Resident- $3.00 Youth/Senior Annual Pass Non-Resident- $4.50 Palm Desert Resident- $420.00 Non-Resident-$630.00 Junior(2-5) Palm Desert Resident- $2.50 Water Exercise Pass Non-Resident-$3.75 Palm Desert Resident-$65.00 Non-Resident-$85.00 Programs Water Exercise Drop-In Masters Monthly Pass Palm Desert Resident-$6.00 Adult- $50.00 Non-Resident- $8.00 Student(COD& CSUSB) -$40.00 Masters Swim Drop-In Fitness Pass $10.00 (All Fitness Classes&Lap Swim) $99.00 Restorative Yoga Drop-In $15.00 Group Swim Lessons Palm Desert Resident-$60.00 Passes Non-Resident-$80.00 Adult Punch Card 25 Palm Desert Resident- $94.00 Private Swim Lessons Non-Resident-$142.00 'h hr. Palm Desert Resident-$30.00 `/z hr.Non-Resident-$40.00 Youth/Senior Punch Card 25 Palm Desert Resident- $65.00 lhr. Palm Desert Resident-$50.00 Non-Resident-$98.00 l hr.Non-Resident-$60.00 Adult 3 Month Pass '/z hr. l Opk. Palm Desert Resident-$270.00 Palm Desert Resident-$150.00 '/z hr. lOpk.Non-Resident-$360.00 Non-Resident- $225.00 1 hr. l Opk. Palm Desert Resident-$450.00 Youth/Senior 3 Month Pass 1 hr. l Opk.Non-Resident-$540.00 Palm Desert Resident-$110.00 Appendix Page 138 Family YMCA of the Desert Palm Desert Aquatic Center Cost Proposal 2018-2019 Salaries $Cost Other Expenses $Cost Salaries Manager _ 65,000 Office Supplies 3,000 - Salaries Instructors 99,948 Janitorial Expense 5,900 Salaries Life Guards 299,713 i ; Supplies First Aid 1,000 Salaries Concession -22,870 j Program Supplies 6,514 Salaries Supervisor Programs 51,000 Concession Supplies 2,500 Salaries LG Supervisor 50,000 Food Expense 18,500 Salaries Customer Service 80,518 ' Beverage Expense 6,500 I Salaries Pool Admin 37,621 Merchandise/Soft Goods 7,000 Salaries Maintenance Supervisor 60,000 Managers Cell Phone Expense 216 Salaries Maintenance/Janitor 20,550 Fingerprints/Medical Clearance 2,000 I Salaries Security 10,638 Maintenance&Repair Building 17,200 1 Health Insurance 22,500 _ Rental Equipment -_ _ 1,000 { Retirement 21,090 Other Special Event Expense 800 Payroll Tax _ 61,036 P/R Marketing Expense 200 1 Unemployment Expense 19,946 Printing _ _ 900 Workers Comp Expense 39,893 Transportation Expense 425 1 Total Salaries 962,323 Training/Conference 3,500 Dues/Organizational 175 I Bank Charges _- 9,085 Insurance Expense 21,960 Miscellaneous Expense 700 Employment Promo/Staff Appraisal 400 Totals $Cost Employee Uniform Expense 4,800 Total Salaries 962,323 • Management Fee 112,500 ----- - -- - - -- ; Administration Cost 52,500 Total Other Expenses 279,275 - --_- .-_ 1 Total Other Expenses 279,275 Total Salaries/Other Expense 1,241,598 ___ 25. P/R Marketing—This has not always been needed but at times additional marketing is utilized. 26. Printing—Rack cards printed for the 3 seasons. 27. Transportation—Reimbursement for staff that go out to pick up supplies,food, beverage or go to a meeting/training. 28. Training/Conference—Planning for Title 22 trainer certification,lifeguard instructor trainer certification,water safety instructor trainer certification,adult learn to swim instructor,and heat exchanger training. 29. Dues—Cost to renew Costco membership. 30. Bank Charges—These are the fees for credit card services and bank activity fees. 31. Insurance Expense—This is an estimate based on prior year. 32. Miscellaneous—This line item is needed at times;therefore a small amount has been budgeted. 33. Employment Promo—This is to recognize employee of the month,and to reimburse items for employee meetings. 34. Employee Uniform—Uniform expense not only includes shirt and shorts but also items such as whistle,badge,rescue tube and hip pack. 35. Management&Administration—An analysis was completed based on number of hours that administration dedicates to PDAC for areas such as Human Resources and Finance. Additionally costs for computer support;office supplies,audit costs,utilities and P/R Marketing have been incorporated. Reflecting back to the original reimbursement amount set in 2013,a 25%increase is needed. TO: Johnny Terfehr FROM: David Keyes—Aquatics Manager Rob Ballew—Executive Director Vanessa Walker—Director of Finance 2018-2019 COST PROPOSAL NARRATIVE SALARIES: 1. Manager—No increase added. 2. Instructors—This increase is due to state pay increases and additional private swim lessons that we plan on having. 3. Life Guards—Less staff are budgeted as a new Supervisor will take on additional duties,but due to pay increases this line item has increased. 4. Concessions—Only needed March—Sept.when concessions is open. 5. Supervisor Programs—Oversees all lane/facility rentals,supervises swim and fitness instructors and completes trainings for staff. 6. Lifeguard Supervisor—Supervises all lifeguards and serves as back up for administration. 7. Customer Service—Only state pay increases were added;staffing stayed steady. 8. Pool Admin—Hourly full time position to complete deposit,oversee inventory and purchase food, beverage and retail items.Oversees concessions staff during season. 9. Maintenance Supervisor/Janitor/Security—This includes the Maintenance Supervisor with a needed increase,staff that clean the facility and security needed during season. 10. Health Insurance—This is an estimate based on prior year as new rates have not been completed. 11. Retirement—Retirement is only for full time employees that have worked over 1,000 hours in 2 consecutive years.They earn 8%in retirement benefits. 12. Payroll Tax/Unemployment—Calculated at current rates. 13. Workers Comp Expense—We have yet to receive updated rates. Budgeted based on prior year actuals. OTHER EXPENSES: 14. Office Supplies—David feels that based on their current needs;this is accurate. 15. Janitorial—This is budgeted to only go up slightly. 16. First Aid—Expenses slightly higher due to needs. 17. Program Supplies—This is budgeted to only go up slightly as we would like to purchase new mannequins for the Red Cross/Lifeguard Certification classes. 18. Concessions/Food/Beverage—Kept consistent to prior year. 19. Merchandise—This has gone up as there have been more need for kick boards,goggles and pull buoys. 20. Cell Phone—Budget amount decreased.Will only be needed to reimburse 25%of David's phone. 21. Fingerprint/Medical Clearance—Every new hire must be fingerprinted and TB tested. 22. Maintenance& Repair—Staying close to prior year actual. 23. Rental Equipment—This is for the purchase of fins,life vests,locks,kickboards,and life buoys. Purchases made in the spring and summer. 24. Other Special Event—Items purchased in the fall for Y Be Fit and in the spring for the Underwater Easter Egg Hunt. FAMILY YMCA OF THE DESERT Financial Statements Year ended June 30,2017 (With Independent Auditors'Report Thereon) l FAMILY YMCA OF THE DESERT Financial Statements Year ended June 30,2017 TABLE OF CONTENTS Page Independent Auditors'Report I Financial Statements: Statement of Financial Position 3 Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 7 i Notes to the Financial Statements 8 Supplementary Information: Schedule of Federal and State Awards 20 Combining Statement of Financial Position 21 Combining Statement of Activities 22 Schedule of Expenditures by State Categories 23 Reconciliation of CDE and GAAP Expense Reporting 24 Schedule of Reimbursable Equipment Expenditures 25 Schedule of Reimbursable Renovation and Repair Expenditures 26 Schedule of Reimbursable Administrative Costs 27 Audited Attendance and Fiscal Report for California State Preschool Program 28 Audited Reserve Account Activity Report 31 Notes to Supplementary Information 32 Independent Auditors'Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 33 Schedule of Findings and Questioned Costs 35 Status of Prior Year Audit Findings 36 1 ell) I Eav is Fa r r Davis Farr LLP 2301 Dupont Drive I Suite 200 I!nine.CA 92612 CERTIFIED PUBLIC ACCOUNTANTS Main:949..174 2020 I Fax:949.263.5520 Board Members Family YMCA of the Desert Palm Desert,California Independent Auditors'Report Report on the Financial Statements We have audited the accompanying financial statements of the Family YMCA of the Desert, which comprise the statement of financial position as of June 30, 2017, and the related statements of activities, functional expenses and cash flows for the year then ended and related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors'Responsibility Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.In making those risk assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Family YMCA of the Desert as of June 30,2017 and the changes in its net assets and its cash flows for the year then ended,in conformity with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the Family YMCA of the Desert 2016 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated October 14, 2016. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2016 is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Matters Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information, as required by the California Department of Education, is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and in conformity with the Guide for Auditing Child Development, Nutrition, and Adult Basic Education Programs issued by the California Department of Education.In our opinion,the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Requirements Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 11, 2017 on our consideration of the Family YMCA of the Desert's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Family YMCA of the Desert's internal control over financial reporting and compliance. ecia September 11,2017 Irvine,California 2 Family YMCA of the Desert Statement of Financial Position June 30,2017 (with comparative totals as of June 30,2016) 2017 2016 Assets Cash and cash equivalents $ 3,472,054 3,286,939 Investments(note 3) 452,925 451,347 Unconditional promises to give(note 4) 24,164 73,195 Accounts receivable 306,893 365,124 Prepaid expenses 33,677 38,549 Inventory 4,546 4,485 Other assets(note 4) 50,085 49,587 Buildings and equipment,net(note 5 and 6) 317,386 322,208 Total assets $ 4,661,730 4,591,434 Liabilities and Net Assets Accounts payable $ 75,114 169,876 Accrued expenses 282,518 302,151 Agency funds-aquatic program (note 12) 249,050 326,362 Unearned revenue(note 10) 128,093 118,670 Total liabilities 734,775 917,059 Net assets(note 13): Unrestricted: Undesignated 2,733,441 2,466,983 Board designated 313,156 353,069 Total unrestricted net assets 3,046,597 2,820,052 Temporarily restricted 880,358 854,323 Permanently restricted - - Total net assets 3,926,955 3,674,375 Total liabilities and net assets $ 4,661,730 4,591,434 See accompanying notes to financial statements 3 Family YMCA of the Desert Statement of Activities Year ended June 30,2017 (with comparative totals for the year ended June 30,2016) Temporarily Permanently Totals Unrestricted Restricted Restricted 2017 2016 _ Support and Revenue: Contributions $ 903,181 23,000 - 926,181 855,198 Private foundation grants 411,065 - - 411,065 452,633 Government grants 361,087 - - 361,087 226,739 CDE childcare contracts and grants 1,275,827 - - 1,275,827 1,061,891 ASES childcare contracts 2,042,266 - - 2,042,266 2,004,824 United way 45,138 - - 45,138 43,757 Special events,net(note 15) 164,564 - - 164,564 178,902 Memberships 45,223 - - 45,223 47,943 Program services 2,628,447 - - 2,628,447 2,694,483 Interest and dividends 6,241 3,035 - 9,276 7,863 Other income 246 - - 246 3,124 Total support and revenues 7,883,285 26,035 - 7,909,320 7,577,357 Expenses: Program Services: ASES child care 2,137,475 - - 2,137,475 2,047,993 State CDE preschool 1,146,853 - - 1,146,853 979,413 General child care 1,318,999 - - 1,318,999 1,339,669 Aquatics 974,237 - - 974,237 861,044 Other programs 1,671,590 - - 1,671,590 1,617,385 Total program services expenses 7,249,154 - - 7,249,154 6,845,504 Supporting services Management and general 180,422 - - 180,422 I47,941 Fundraising 227,164 - - 227,164 188,180 Total supporting services expenses 407,586 - - 407,586 336,121 Total expenses 7,656,740 - - 7,656,740 7,181,625 Increase(decrease)in net assets 226,545 26,035 - 252,580 395,732 Net assets at beginning of year 2,820,052 854,323 - 3,674,375 3,278,643 Net assets at end of year $3,046,597 880,358 - 3,926,955 3,674,375 See accompanying notes to financial statements 4 Family YMCA of the Desert Statement of Functional Expenses Year ended June 30,2017 (with comparative information for the year ended June 30,2016) Supporting Services Management Totals Subtotal and General Fundraising Subtotal 2017 2016 4,224,913 78,191 129,158 207,349 4,432,262 $ 4,278,772 17,708 6,115 - 6,115 23,823 32,302 - 13,144 - 13,144 13,144 17,579 - 21,440 - 21,440 21,440 16,237 63,465 11,200 - 11,200 74,665 67,225 174,086 1,665 2,750 4,415 178,501 130,526 120,427 4,485 1,164 5,649 126,076 89,102 146,925 - - - 146,925 145,678 359,110 8,164 6,447 14,611 373,721 286,222 83,140 9,781 4,891 14,672 97,812 55,526 338,537 8,382 2,794 11,176 349,713 335,915 35,251 7,327 1,582 8,909 44,160 46,580 26,430 - 5,892 5,892 32,322 32,930 193,942 19,430 - 19,430 213,372 238,472 589,607 58,493 1,030 59,523 649,130 533,399 312,028 5,398 8,918 14,316 326,344 315,901 158,317 6,050 9,992 16,042 174,359 154,288 4,789 836 279 1,115 5,904 4,454 240,688 213 - 213 240,901 270,980 - - 51,050 51,050 51,050 48,715 17,945 597 - 597 18,542 16,774 11,775 2,031 - 2,031 13,806 16,033 45,122 2,429 1,217 3,646 48,768 48,015 84,949 (84,949) - - (84,949) - - 7,249,154 180,422 227,164 407,586 7,656,740 $ 7,181,625 See accompanying notes to financial statements 6 Family YMCA of the Desert Statement of Cash Flows Year ended June 30,2017 (with comparative totals for the year ended June 30,2016) 2017 2016 Cash flows from operating activities: Increase in net assets $ 252,580 395,732 Adjustments to reconcile increase(decrease)in net assets to net cash provided by operating activities: Depreciation and amortization 74,665 67,225 Net unrealized and realized(gain)loss on investments (1,503) (1,484) Proceeds from disposal of fixed assets - 3,000 (Increase)decrease in unconditional promises to give 49,031 (30,387) (Increase)decrease in accounts receivable 58,231 99,487 (Increase)decrease in prepaid expenses 4,872 (1,273) (Increase)decrease in inventory (61) 616 (Increase) decrease in other assets (498) (268) Increase(decrease)in accounts payable (94,760) 114,308 Increase (decrease)in accrued expenses (19,634) (62,088) Increase(decrease)in agency funds-aquatic program (77,312) 50,817 Increase(decrease)in unearned revenue 9,423 31,005 Net cash provided by operating activities 255,034 666,690 Cash flows from investing activities: Proceeds from sale of investments 44,288 - Purchase of fixed assets (69,843) (45,562) Net cash flows provided(used)by investing activities (25,555) (45,562) Net increase(decrease)in cash and cash equivalents 229,479 621,128 Cash and cash equivalents at beginning of year 3,286,939 2,665,811 Cash and cash equivalents at end of year $ 3,5I6,418 3,286,939 There were no significant noncash investing and financing activities for the years ended June 30,2017 and 2016. See accompanying notes to financial statements 7 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (1) Nature of Organization Family YMCA of the Desert(the"Organization") was incorporated on July 19, 1982, for the purpose of providing recreational and other programs for the benefit of its members and for the community at large.The corporate office is Iocated in Palm Desert,California. The Organization offers program services in Palm Desert and at various sites and childcare facilities throughout the Coachella Valley region of Southern California. The Organization is both publicly and privately funded. The Organization has childcare service contracts with local school districts and with the California Department of Education (CDE). The Organization receives grants from local city governments, private donations, membership fees and program service fees. The Organization also has an operating agreement with the City of Palm Desert (the "City") to manage the City's Aquatics Center. Child care fees represent the largest component of program service income. After-school preschool and child care contracts with local school districts represent the largest component of government grants. (2) Summary of Significant Accounting Policies (a) Basis of Accounting The financial statements of the Family YMCA of the Desert have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. (b) Financial Statement Presentation The Family YMCA of the Desert has implemented the financial statement presentation recommended by the Financial Accounting Standards Boards(FASB) in its Accounting Standards Codification (ASC) 958-205, Presentation of Financial Statements. Under ASC 958-205, the Family YMCA of the Desert is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets,and permanently restricted net assets. (c) Support and Revenue Annual contributions are generally available for unrestricted use in the related year unless specifically restricted by the donor. Unconditional promises to give are recorded as revenue when received. Unconditional promises to give that are expected to be collected within one year are recorded at net realizable value. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discounts on those amounts are computed using risk-free interest rates applicable to the years in which the promises are received. Amortization of the discounts is included in contribution revenue. Conditional promises to give are not included as support until the conditions are substantially met. An allowance for uncollectible promises is provided based on management's evaluation of potential uncollectible promises receivable at year-end. 8 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (2) Summary of Significant Accounting Policies,(continued) (c) Support and Revenue,(continued) Grants and other contributions of cash and other assets are reported as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished,temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Endowment contributions are permanently restricted by the donor. Contributions of donated noncash assets are recorded at their fair value in the period received. Contributions of donated services that create or enhance nonfinancial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at their fair values in the period received. Program service fees (primarily childcare fees) are recorded when services are provided. (d) Cash and Cash Equivalents The Family YMCA of the Desert considers cash, demand deposits, money market funds and all highly liquid debt instruments purchased with an original maturity of three months or less to be cash and cash equivalents. The following items on the statement of financial position were considered cash and cash equivalents for purposes of the Statement of Cash Flows as of June 30,2017: Petty cash $ 1,760 Demand deposits 3.514,658 Total 53.516.418 These accounts may,at times,exceed federally insured limits. The Family YMCA of the Desert has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents. (e) Investments The Family YMCA of the Desert's investments are carried at fair value using quoted market prices with gains and losses included in the Statement of Activities. Investments can include certificates of deposit, equities, U.S. government bonds and corporate bonds. The funds are subject to gains or losses of principal based on fluctuations in market prices. 9 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (2) Summary of Significant Accounting Policies,(continued) (f) Fair Value Measurements Accounting Standards Codification ("ASC") 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The Organization accounts for its investments under ASC 820. The Statement establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Organization's assumptions (unobservable inputs). Determining where an asset or liability falls within that hierarchy depends on the lowest level input that is significant to the fair value measurement as a whole. An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The hierarchy consists of three broad levels as follows: Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Level 3 — Pricing inputs are unobservable for the instrument and include situations where there is little, if any, market activity for the instrument. The inputs into the determination of fair value require significant management judgment or estimation. In some instances, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such instances, an instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Market price is affected by a number of factors, including the type of instrument and the characteristics specific to the instrument, as well as the effects of market, interest and credit risk. Instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgement used in measuring fair value. It is reasonably possible that changes in values of these instruments will occur in the near term and that such changes could materially affect amounts reported in the Organization's financial statements. 10 • FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (2) Summary of Significant Accounting Policies,(continued] (g) Receivables Grants, contracts and accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a provision for bad debt expense and an adjustment to a valuation allowance based on its assessment of the current status of individual receivables from grants and contracts and individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a debit to the valuation allowance and a credit to the applicable receivable. (h) Other Assets Amounts reported as "other assets"include the expected value of a life insurance policy and a time-share unit that was donated. This asset was capitalized at its fair market value at the time of donation.This asset is not subject to depreciation. (i) Property and Equipment The Organization's property and equipment are recorded at cost, or in the case of donated items, at estimated fair market value at the date of the gift. Maintenance and repairs are expensed when incurred and betterments are capitalized. Property and equipment are depreciated using the straight-line method over their estimated useful lives of three to thirty years. It is the policy of the Organization to capitalize all assets$1,500 and greater. (j) Capitalized Lease Cost Capitalized lease cost is stated at cost and is being amortized over its useful life of thirty-five years using the straight-line method. (k) Donations and Contributions Unconditional promises to give and contributions received are recognized as revenues or gains in the period received. Unconditional promises to give due in future years are recorded at their net realizable value. Contributions with donor-imposed restrictions are reported as temporarily or permanently restricted revenues. Temporarily restricted net assets are reclassified to unrestricted net assets when an expense is incurred that satisfies the donor- imposed restriction or when a time restriction has been met. • 11 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (2) Summary of Significant Accounting Policies. (continued) (1) Contributed Services,Materials and Facilities Contributions of services are recognized if the services received create or enhance non-financial assets or require specialized skills, are purchased by individuals possessing those skills, and would typically need to be purchased if not provided by donation. Contributions of donated noncash assets are recorded at their fair value in the period received. The Organization occupies and offers on-site program services at facilities owned by local cities. The Organization does not pay rent for the use of such facilities. The estimated fair rental value of contributed facilities is recorded as contribution revenue. The Organization receives donated services from a variety of unpaid volunteers assisting the Organization in its program services and fundraising campaigns. No amounts for such donated services have been recognized in the accompanying financial statements since no objective basis is available to measure the value of such services. Contributed services requiring specific expertise are recognized in the accompanying financial statements. The Organization recognizes contributed rent expense on certain facilities. Donated rent, supplies and vehicles for the year ended June 30, 2017 totaled $232,652. The fair value of contributed rent, vehicles and supplies has been measured on a nonrecurring basis using quotes prices in active or inactive markets for the same or similar assets. (m) Income Taxes The Organization is a California nonprofit corporation, which operates as a public charity and is exempt from Federal and State Corporate income taxes under Section 501 (cx3) of the Internal Revenue Code and similar state statutes. Therefore, no provision is made for current or deferred income taxes. The Organization uses the same accounting methods for tax and financial reporting. U.S. Generally Accepted Accounting Principles provide accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has reviewed the significant tax positions taken by the Organization in its federal and state information returns and believes that none of the tax positions taken by the Organization will result in contingent tax liabilities. The Organization's tax and information returns are subject to examination by federal and state taxing authorities, generally for three and four years respectively,after they are filed. (n) Expense Allocation The costs of providing the various programs and other activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited. 12 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (2) Summary of Significant Accounting Policies,(continued) (o) Net Assets To ensure observance of limitations and restrictions placed on the use of financial resources available to the Family YMCA of the Desert,the accounts of the Family YMCA of the Desert are maintained in accordance with the principles of net asset accounting. This is the procedure by which financial resources for various purposes are classified for accounting and reporting purposes into net asset classification established according to their nature and purpose. Separate accounts are maintained for each net asset classification; however, in the accompanying financial statements, net asset classifications that have similar characteristics have been combined into net asset groups as noted below. Net assets and revenue, gains, expenses, and losses are classified as unrestricted, temporarily restricted, or permanently restricted,as follows: • Unrestricted net assets represent the portion of net assets over which the governing board has discretionary control for general operations of the Organization. The only limits on unrestricted net assets are limits resulting from contractual agreements. • Temporarily restricted net assets consist of the portion of net assets resulting from contributions,pledges and other inflows of assets whose use by the Organization is limited by donor-imposed restrictions that expire by passage of time or accomplishment of purpose. When the purpose/time restrictions are accomplished, the temporarily restricted net assets arc reclassified to unrestricted net assets. • Permanently restricted net assets consist of contributions, such as permanent endowment funds, subject to donor imposed stipulations that the principal be maintained permanently by the Family YMCA of the Desert. Generally, the donors permit the Family YMCA of the Desert to use all or part of the income earned on these assets. (p) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. However, management anticipates any variances to be immaterial. 13 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (2) Summary of Significant Accounting Policies,(continued) (q) Prior Year Data Selected information regarding the prior year has been included in the accompanying financial statements. Certain reclassifications have been made to prior year amounts in order to conform to the current year presentation. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Family YMCA of the Desert's prior year financial statements,from which this selected financial data was derived. (3) Investments The following table presents investments recorded at fair value as of June 30, 2017 and indicates the fair value hierarchy of the valuation techniques used to measure fair value as described in note 2(f). Total Level 1 Level 2 Level 3 Cerificates of deposit $ 452,925 - 452.925 - Total investments ,$ 452.925 �—_ Q.,452.92,1 - (4) Unconditional Promises to Give and Split Interest Agreements The amount of unconditional promises to give at June 30,2017 was as follows: Sustaining Campaign $ 24,164 Less: allowance for uncollectible pledges Net unconditional promises to give $ 24.164 Amounts of unconditional promises to give due in: Less than one year $ 24,164 One to five years More than five years r$ 24.164 Bad debts expense of $13,144 was recorded during the year in connection with the sustaining campaign. 14 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 ‘4) Unconditional Promises to Give and Split Interest Agreements,(continued) The YMCA has been named a beneficiary in a split interest agreement. The Organization's beneficial interest in split interest agreements is reported as part of other assets and carried at fair value,which the Organization has estimated based on the present value of the expected future cash inflows. Based on donor life expectancy and discount rate of 4.5% based on the risk of the agreement, the fair value of the Organization's interest is$39,795 as of June 30, 2017. (5) Property and Equipment Property and equipment at June 30,2017 are summarized as follows: Building Improvement and Modulars $ 719,090 Leased Building 250,000 Office Equipment and Furniture 206,155 Automobiles 172,520 Computer Equipment 31,633 Program and Educational Equipment 197,892 1,577,290 Less:Accumulated Depreciation (1,259,904) 317.386 Depreciation and amortization expense was$74,665 for the year ended June 30,2017. (6) Capitalized Lease Cost In May 1989, the Organization entered into a lease to occupy its current facility from the City of Palm Desert (the "City"). The lease had an initial term of ten years commencing on May 1, 1990,with two options to extend the lease term for twenty-five years each. In February 1999, the lease term was subsequently modified to an initial term of fifteen years.In August 2005,the lease terms were again modified to extend the initial lease term for one additional year to expire on May 1, 2006. Each twenty-five year option requires the Organization to pay for expansion of the facility by 5,000 square feet. The Organization is responsible for all utilities, taxes and repairs to the facility as well as providing adequate insurance coverage. During a previous year, additional negotiations between the Organization and the City of Palm Desert resulted in submission of facility expansion plans to the City. A final architectural design for the Organization's existing facility has not yet been identified and a written lease extension contract has not yet been executed. The initial consideration for the Organization to occupy the facility was to deed two acres of land (valued at $150,000) to the City of Palm Desert as well as paying $100,000 in cash,for a total of$250,000. Amortization expense for the year ended June 30,2017 was $7,143. Accumulated amortization at June 30, 2017, was $187,500. The net value of the 15 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 capital lease at year end was $62,500 and was included with property and equipment on the statement of financial position. (7) Operating Leases The Organization leases certain office equipment, storage space and facilities under operating leases on a month-to-month basis and long-term leases with expiration dates reaching to June 2019. Future minimum payments under operating lease arrangements are as follows: Fiscal year: 2018 $ 52,600 2019 46.200 Total $ 98.800 Some of the Organization's child care centers and day camp facilities are leased on an annual basis with cancellation clauses or on a month to month basis. The Organization also leases facilities owned by several local cities with annual rents of $1 or less. Contributed rent expense is recognized on such lease arrangements. For the year ended June 30, 2017, contributed rent totaling$158,385 on various sites leased from local cities was recognized as contribution revenue and rent expense. During 2011, the Organization entered into a one-year lease with a board member. The lease agreement has since been extended for each year since. Operating rent of$13,200 was paid to this Board of Trustee member for the year ended June 30, 2017. Other rental expense for equipment, storage facilities, childcare and other program facilities for the year ended June 30,2017 was$51,210. (8) Employee Benefit Plan The Organization contributes on behalf of its employees to the YMCA Retirement Fund defined contribution pension plan.Under the plan,contributions were made based on 8% of the employee's annual salary. All full-time employees,at least 21 years of age,become eligible to participate in the plan after two years and 1,000 hours of service. Pension expense for the year ended June 30,2017 was $174,359.This plan is administered by the National YMCA. (9) Accumulated Vacation Accumulated unpaid employee vacation benefits are recognized as accrued expenses in the accompanying financial statements. The liability is recognized in the program to which the liability relates. The value of accumulated vacation leave at June 30, 2017 is as follows: Non-CDE Sponsored Programs $ 75,977 CDE Programs 16,503 92.480 16 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (10) Unearned Revenue Unearned revenue liability at June 30,2017 is comprised of the following: Childcare and general program fees $ 103,350 Aquatics program fees 14,802 QRIS program fees 9.941 Total $$l 28__,093 Unearned revenue fees for childcare, aquatics and other general programs were applied towards program revenues in the next fiscal year. (11) CDE Child Development Reserves Child development contractors with the California Department of Education are allowed, with prior CDE approval, to maintain a reserve account from unexpended child development contract funds. Transfers from a reserve account are considered restricted income for child development programs, but may be applied to any of the contracts that are eligible to contribute to that particular program type. The Organization maintains a reserve account for its center based state preschool program and funds are deposited into an interest-bearing account. These funds are considered to be CDE funds, for which the Organization is merely acting as an agent holding the funds on behalf of the CDE. Upon termination of all child development center-based contracts with the CDE, unspent reserve funds have to be returned back to the CDE. (12) Agency Funds The Aquatics Program is supported by the City of Palm Desert. City support funds in excess of program expenses are held in a separate account and are refunded back to the City periodically. Agency funds totaling$249,050 have been reported as a liability in the statement of financial position, since these funds are considered to be unearned amounts associated with contracts to provide an aquatic program for the community of Palm Desert. (13) Net Assets Board designated and temporarily restricted net assets were available at June 30,2017 for the following purposes: 17 FAMILY YMCA OF THE DESERT Notes to the Financial Statements Year ended June 30,2017 (13) Net Assets, (continued) Unrestricted Board Temporarily Designated Restricted New facilities fund $ 227,113 862,713 Future maintenance 55,221 - Programs - 17,645 Unemployment liability reserve 30,822 $ 31 l56 r8a5$ During the past several years,the New Facilities Fund has borrowed from the Operating Fund to cover expenses related to capital campaign activities totaling $278,796. A due to/from has been established in the books for tracking purposes, but has been eliminated for financial statement reporting purposes. (14)_ Related Party Transactions As discussed in Note 7,facilities rent of$13,200 was paid to a Board of Trustee member for the year ended June 30, 2017. The Organization maintains banking relationships with several financial institutions. Two board members work at these institutions. The Organization had outstanding employee loans of $1,300 at June 30, 2017. This amount is made up of several staff that received training as part of their hiring requirements paid for by the Organization. The staff will reimburse the Organization through payroll deduction in the next fiscal year. (15) Special Events Golf Other Hoedown Tournament Events Total Special event revenue $219,390 35,751 88,397 345,266 Less direct expenses (81,584) (9,314) (89,804) (180,702) Net support from special events 1$ 131.806 • 437 _CL407) _ (& (16) Commitments apd Contingencies The YMCA is a defendant in a lawsuit.At date of issuance, it was premature to calculate outcome and range of loss related to this Iawsuit. The YMCA has insurance that they anticipate will cover the full range of potential loss. (17) Subsequent Events Subsequent events have been evaluated through September 11, 2017, which is the date the financial statements were available to be issued. 18 SUPPLEMENTARY INFORMATION 19 Family YMCA of the Desert Schedule of Federal and State Awards Year Ended June 30,2017 Federal Program Reimbursable State CFDA Grantor's of Award Revenue Disbursement/ Reserve Grantor Number Number Amount Recognized Expenditures Fund U.S,Department of Aericulture Passed through California Department of Education: Child and Adult Care Food Program 10.558 S 96,916 96,916 112,938 - Total Department Expenditures 96,916 96,916 112,938 - Child Development Division State Preschool 93.596 and 93.575 CSPP-5340 1,164,132 1,118,376 1,049,937 68,439 Total Department Expenditures 1,164,132 1,118,376 1,049,937 68,439 Total Expenditures of Federal and State Awards $ 1,261,048 1,215,292 1,162,875 68,439 Sec accompanying notes to the supplementary information 20 Family YMCA of the Desert Combining Statement of Financial Position June 30,2017 State Non CDE Preschool Sponsored Program Programs Total Assets Cash and cash equivalents $ 71,853 3,400,201 3,472,054 Investments - 452,925 452,925 Unconditional promises to give,net - 24,164 24,164 Accounts receivable 65,314 241,579 306,893 Prepaid expenses - 33,677 33,677 Inventory - 4,546 4,546 Other assets - 50,085 50,085 Land,buildings and equipment,net 58,770 258,616 317,386 Interfund Receivable(Payable) (11,270) 11,270 - Total assets $ 184,667 4,477,063 4,661,730 Liabilities and Net Assets Accounts payable $ 12,599 62,515 75,114 Accrued expenses 43,106 239,412 282,518 Agency funds-aquatic program - 249,050 249,050 Deferred revenues 9,941 118,152 128,093 Total liabilities 65,646 669,129 734,775 Net assets: Unrestricted: Undesignated 119,021 2,614,420 2,733,441 Board designated - 313,156 313,156 Total unrestricted net assets 119,021 2,927,576 3,046,597 Temporarily restricted - 880,358 880,358 Permanently restricted - - - Total net assets 119,021 3,807,934 3,926,955 Total liabilities and net assets $ 184,667 4,477,063 4,661,730 See accompanying notes to the supplementary information 21 Family YMCA of the Desert Combining Statement of Activities Year ended June 30,2017 State Non CDE Preschool Sponsored Program Programs Totals Support and Revenue: Program Revenues: Program services $ 49,447 2,579,000 2,628,447 Memberships - 45,223 45,223 CDE childcare 1,068,115 42,090 1,110,205 CDE food contracts 96,916 68,706 165,622 QRIS childcare 27,528 - 27,528 ASES childcare - 2,014,738 2,014,738 Total program revenues 1,242,006 4,749,757 5,991,763 Other Support: Contributions - 1,743,471 1,743,471 Investment income,net 16 9,260 9,276 Gain on sale of assets - 246 246 Special events,net of direct expenses _ - 164,564 164,564 Total Other Support 16 1,917,541 1,917,557 Total support and revenues 1,242,022 6,667,298 7,909,320 Expenses: Program Services: Child Care 1,I46,853 3,456,474 4,603,327 Aquatics - 974,237 974,237 Other Programs - 1,671,590 1,671,590 Total program services expenses 1,I46,853 6,102,301 7,249,154 Supporting services Management and general - 180,422 180,422 Fundraising - 227,164 227,164 Total supporting services expenses - 407,586 407,586 Total expenses 1,146,853 6,509,887 7,656,740 Increase(decrease)in net assets 95,169 157,411 252,580 Net assets at beginning of year 23,852 3,650,523 3,674,375 Net assets at end of year $ 119,021 3,807,934 3,926,955 See accompanying notes to the supplementary information 22 Family YMCA of the Desert Schedule of Expenditures by State Categories Year Ended June 30,2017 State Preschool Program 1000 Certified salaries $ 355,075 2000 Classified salaries 293,002 3000 Employee benefits 159,519 4000 Books and supplies 99,926 4400 Non-capitalized equipment - 5000 Services and other operating expenses 152,188 6400 Other approved capital outlay - 6500 New equipment 2,194 Depreciation of use allowance - Start-up expenses - Indirect Costs 84,949 Total expenses claimed for reimbursement $ 1,146,853 We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that amounts claimed by the contractor were eligible for reimbursement,reasonable,necessary,and adequately supported, according to governing laws,regulations and contract provisions. See accompanying notes to the supplementary information 23 Family YMCA of the Desert Reconciliation of CDE and GAAP Expenses Reporting Year Ended June 30,2017 State Preschool Program Reimburseable expenses per audited fiscal reports $ 1,146,853 Program expenses per GAAP financial reports 1,146,853 Difference Different between CDE and GAAP reporting $ See accompanying notes to the supplementary information 24 Family YMCA of the Desert Schedule of Reimbursable Equipment Expenditures Year Ended June 30,2017 State Preschool State Program Grants Total Unit cost under$7,500 per item Unit cost over$7,500 per item with prior written approval - - - Unit cost over$7,500 per item without prior written approval - -Total See accompanying notes to the supplementary information 25 Family YMCA of the Desert Schedule of Reimbursable Renovation and Repair Expenditures Year Ended June 30,2017 State Preschool State Program Grant Total Unit cost under$10,000 per item Unit cost over$10,000 per item with prior written approval - - Unit cost over$10,000 per item without prior written approval - -Total See accompanying notes to the supplementary information 26 Family YMCA of the Desert Schedule of Reimbursable Administrative Costs Year Ended June 30,2017 State Preschool State Program Grant Total Director salaries S 26,180 - 26,180 Clerical salaries 22,133 - 22,133 Employee benefits 2,445 - 2,445 Payroll taxes 3,566 - 3,566 Insurance 2,688 - 2,688 Audit fees 14,485 - 14,485 Indirect costs: Direct services 84,949 - 84,949 Total $ 156,446 - 156,446 See accompanying notes to the supplementary information 27 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: FAMILY YMCA OF THE DESERT Vendor No. T774 Fiscal Year Ended: June 30,2017 Contract No. CSPP-6352 Independent Auditor's Name: DAVIS FARR LLP COLUMN A COLUMN 13 COLUMN C COLUMN b COLUMN E SECTION I-CERTIFIED CHILDREN CUMULATIVE DAYS OF ENROLLMENT FISCAL.YEAR PER AUDIT cuMULATIVE FISCAL ADJUSTMENT Jt ��LAEM FORM CDFS e501 ADJUSTMENTS YEAR PER AUDIT FACTOR PER AUDIT Three and Four Year Olds - Full-time-pius - 1.1800 - Full-time 12,922 12,922 1.0000 12,922.000 Three-quarters-time - 0.7500 - One-half-time 16,146* 16,146 0.6196 10,004.062 Exceptional Needs Full-time-plus - 1.4160 - Fuil-time - 1.2000 - Three-quarters-time - 0.9000 - One-half-time - 0.6196 - Umited and Non-English Proficient Fuu-time-pins - 1.2980 - Full-time 4,293 4,293 1.1000 4,722.300 Three-quarters-time - _ 0.8250 - One-half-time - 0.6196 - At Risk of Abuse or Neglect Full-time-pins - 1.2950 - FuM-time - 1.1000 - Three-quarters-tine - 0.8250 - One-half-time - 0.6196 - Severely Disabled Full-time-plus - 1.7700 - Full-time - 1.5000 - Tlree-quarters-Umo - 1.1250 - One-half-time - 0.6196 - TOTAL DAYS OF ENROLLMENT 33,361 - 33,361 `'•— ".' ' 27 648.362 DAYS OF OPERATION - I :',7 DAYS OF ATTENDANCE - ! 7:17.- !r''- __ O NO NONCl:R7lrltu CHILDREN-Check box,omit page 2&continue to Section Al It no noncentfie i children were enrolled,'n the program. Comments-If necessary.attach additional sheets to explain adjustments: AUD 8501,Page 1 of 4(FY 2018-17) California Department of Education 28 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs • Agency Name: FAMILY YMCA OF THE DESERT Vendor No. T774 Fiscal Year End: June 30,2017 Contract No. CSPP-6352 COLUMN A - COLUMN B COLUMN C CUMULATIVEAuerr FISCAL YEAR PEA A,ONEMA ENT CUMULATIVE RSCAL INCREASE OR SECTION III-REVENUE FOAM CL1f3 a701 YEAR PGA Mori INCREASE) RESTRICTED INCOME Child Nutrition Programs $96,916 $96,916 County Maintenance of Effort(EC§6279) 0 Uncashed Checks to Providers 0 Other(Specify): 0 Other(Specify): 0 Subtotal- $96,916 $0_ $96,916 Transfer from Reserve-General 0 Transfer from Reserve-Professional Development 0 Subtotal $0 $0, $0 Family Fees for Certified Chldren 49,447 49,447 Interest Earned on Apportionments 16 16 UNRESTRICTED INCOME Family Fees for Noncertlfied Children 0 Head Start Program(EC§8235(b)) 0 Other(Specify): 0 Other(Specify): 0 TOTAL REVENUE $146,379 $0 $148,379 SECTION IV-REIMBURSABLE EXPENSES Direct Payments to Providers(FCCH Only) $0 1000 Certificated Salaries 355,075 355,075 2000 Classified Salaries 293,002 293,002 3000 Employee Benefits 159,519 159,519 4000 Books and Suppiles 99.926 99,926 5000 Services and Other Operating Expenses 152,188 — 152,188 6100/6200 Other Approved Capital Outlay 0 6400 New Equipment(pnpram-related) 2,194 2,194 6500 Replacement Equipment(program-related) 0 Depreciation or Use Allowance 0 Stan-Up Expenses(service level exemption) 0 Budget Impasse Credit 0 Indirect Costs Rate: 8.02% tea A srac.aree,et 64.949, 84,949 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $1,146,853 $0 $1,146,853 TOTAL ADMINISTRATIVE COSTS nvoumonno ivanmrl $156,446 $0 $156,446 FOR CDE-A&I USE ONLY: Independent Auditor's Assurances on Agency's compliance with Contract Funding Terms and Conditions and Program Requirements of the California Department of Education,Early Education and Support DMalon: Eagtbay,armament and attendance records are being maintained as required(check YES or NO): COMMENTS-If necessary,attach additional sheets to'roan adjustments: a YES o NO-Explain any dsatpandes. Reimbursable esperwe calmed above are/Sables for reYnbusemenL reasonable,necessary.and adequately supported(cheek YES a NO): AYE o NO-Explain any dstrepanda. ❑ NO SUPPLEMENTAL REVENUES OR EXPENSES•o►eck arc and omit page 4'Mere are no supplemental revenues or expenses to report. AUD 8501,Page 3 or 4(FY 2016-17) CaEbmla Department of Education 29 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: FAMILY YMCA OF THE DESERT Vendor No. T774 Fiscal Year End: June 30,2017 Contract No. CSPP-8352 COLUMN A - COLUMN B COLUMN C CUMULATIVE FISCAL AUDn-ADJUSTMENT CU?ULATNE FISCAL YEAR YEAR PER FORM CDFS INCREASE OR SECTION V-SUPPLEMENTAL REVENUE 8601 (DECREASE) PER AUDIT Enhancement Funding $27,528 $27,528 Other(Specify): 0 Other(Specify): 0 Other(Specify): 0 TOTAL SUPPLEMENTAL REVENUE $27,528 $0 $27,528 SECTION VI-SUPPLEMENTAL EXPENSES EXPENSES RELATED TO SUPPLEMENTAL REVENUE 1000 Certificated Salaries $0 2000 Classified Salaries 0 3000 Employee Benefits 0 4000 Books and Supplies 0 5000 Services and Other Operating Expenses 27.528 27,528 6000 Equipment/Other Capital Outlay 0 Depreciation or Use Allowance 0 Indirect Costs 0 NONREIMBURSABLE EXPENSES 6100-6500 Nonreimbursable Capital Outlay 0 Other.e.g.,Entertainment Expenses 0 Other(Specify): 0 Other(Specify): 0 TOTAL SUPPLEMENTAL EXPENSES $27,528 $0 $27,528� COMMENTS-If necessary,attach additional sheets to explain adjustments. i AUD 8501,Page 4 of 4(FY 2016-17) Caifomia Department of Education 30 AUDITED RESERVE ACCOUNT ACTIVITY REPORT Agency Name: FAMILY YMCA OF THE DESERT Fiscal Year End: June 30,2017 Vendor No. T774 Independent Auditors Name: DAVIS FARR LLP RESERVE ACCOUNT TYPE(Check One): COLUMN A COLUMN B COLUMN C 0 Center Based AUDIT ❑ Resource and Rerenal PER AGENCY ADJUSTMENT PER AUDIT INCREASE OR ❑ Attemattve Paymertt (DECREASE) LAST YEAR: 1.Beginning Balance(mat equal ending Wanes from Last Years AUD 9530-A) $15,036 $15,036 2.Plus Transfers from Contracts to Reserve Account (based on last years post-audit CDFS R530,Section N) Contract No.CSPP-6352 $68,439 $68,439 Contract No. 0 Contract No. 0 _ Contract No. 0 Contract No. 0 Contract No. 0 Total Transferred from Contracts to Reserve Account $68,439 $0 $68,439 '3.Less Excess Reserve to be Billed (diet es a positive amount any excess amount dated by CDFS on Isst years post-audit CDFS 95301 $0 4.Ending Balance on Last Years Post-Audit CDFS 9530 $83,475 $0 $83,475 THIS YEAR: 5.Plus Interest Earned This Year on Reserve Funds (cotamn A neat agree with this years CDFS 9530-A,Section tt) $4 $4 B.Less Transfers to Contracts from Reserve Account (column A amounts mint agree with this years CDFS 9530-A,Section it;and column C Founts naal be reported on this years AUD forms for respective contracts): CSPP-General Contract No. $0 Contract No. 0 _ CSPP-Professional Development Contract No. SO Contract No. 0 Subtotal $0 S0 $0 Other Contracts Contract No. $0 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 _ Subtotal S0 $0 S0 Total Transferred to Contracts from Reserve Account $0 S0 $0 7.Ending Balance on June 30,2017 (column A must agree with this years cops 9530-A,Section IV) $83,479_ $0 $83,479 COMMENTS-If necessary,attach additional sheets to explain adjustments: AUD 9530-A,Page 1 d 1(FY 2016-17) Caffomis Depurtmerd d Education 31 FAMILY YMCA OF THE DESERT Notes to Supplementary Information Year ended June 30,2017 (1) Summary of Significant Accounting Policies (a) Basis of Accounting The accompanying combining statements of financial position, activities and changes in net assets have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. Other supplementary schedules have been prepared in accordance with the Funding Terms and Conditions and Program Requirements of the California Department of Education(CDE). (b) Allowable Indirect Costs Indirect costs are only applicable to the 1000-5000 series of general ledger expenditure accounts in the California School Accounting Manual. In accordance with CDE Funding Terms and Conditions,indirect costs cannot be charged on capital outlay expenditures in the 6000 series accounts. (c) Use of Estimates The preparation of supplementary information in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from those estimates. (2) Federal Awards The Agency's federal awards for the fiscal year ended June 30,2017 were less than$750,000. (3) Equipment and Property Purchased with CDE Funds A capitalization threshold of $1,500 is used for property and equipment acquired under CDE contracts. The CDE has a reversionary interest in property and equipment purchased with state funds. (4) Reconciliation of CDE and GAAP Expense Reporting As discussed in Note 1 above, the CDE supplementary information is presented in accordance with CDE reporting requirements. CDE program funds expended for assets that would normally be capitalized and depreciated under GAAP are reported as program expenditures in the CDE schedules. To address such reporting differences, the supplementary information includes a Reconciliation of CDE and GAAP Expense Reporting. 32 400 I Dav is Fa r r Davis e,CA LP 2301 Dupont Dart!,Suite 200 i Irvine.CA 92612 CERTIFIED PUBLIC ACCOUNTANTS Main:949.474.2020I Fax:949.263.5520 Board Members Family YMCA of the Desert Palm Desert,California Independent Auditors'Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Family YMCA of the Desert(the "Organization"), which comprise the statement of financial position as of June 30, 2017, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements,and have issued our report thereon dated September 11,2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Organization's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore,material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit,and accordingly, we do not express such an opinion. The results of our tests disclosed one instance of noncompliance or other matters that are required to be reported under Government Auditing Standards. 33 Board of Trustees Family YMCA of the Desert Page 2 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. Pa coo . eLP September 11,2017 Irvine, California 34 • FAMILY YMCA OF THE DESERT Summary Schedule of Prior Audit Findings Year ended June 30,2017 There were no prior audit findings for the year ended June 30,2016. 36