HomeMy WebLinkAboutC29401 Extention Family YMCA Management and Operations Services at PD Aquatic CenterContract No. C29401
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: APPROVE CONTRACT NO. C29401, A ONE-YEAR EXTENSION
WITH THE FAMILY YMCA OF THE DESERT, FOR
MANAGEMENT AND OPERATIONS SERVICES AT THE PALM
DESERT AQUATIC CENTER FOR FY 2012/2013
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
CONTRACTOR: Family YMCA of the Desert
43-930 San Pablo Ave.
Palm Desert, CA 92260
DATE: May 24, 2012
CONTENTS: First Amendment to Agreement
YMCA Correspondence
Recommendation
By Minute Motion:
1. Approve Contract No. C29401, a one-year extension with Family
YMCA of the Desert (YMCA) for management and operations services
at the Palm Desert Aquatic Center; and
2. Authorize the Mayor to execute the First Amendment.
Funds are available in Fund 242 Accounts and have been included in the proposed FY
2012/2013 operating budget.
Background
The City Council awarded Contract No C29400 on February 10, 2011, to The Family
YMCA of the Desert. The contract includes all management and operations services for
the Palm Desert Aquatic Center, and provides for two extensions of one year each.
Staff has been very pleased with the first full year of operations and many of the
successes can be attributed to the team that has been assembled by the YMCA. Staff
has estimated a conservative 48 percent recovery rate for the second full year of
operations and is hopeful that number will be exceeded. Exhibit B of the First
Staff Report
Family YMCA of the Desert First Amendment to Agreement
May 24, 2012
Page 2 of 2
Amendment outlines the total program budget for FY 2012/2013, which is inclusive of all
utilities and maintenance expenses paid to operate the facility.
The YMCA has agreed to reduce the amount of indirect administration costs from
$60,000 to $42,000 based on the actual expenses incurred in the first year of
operations. The original contract with the YMCA had two provisions for management
fees; a fixed monthly management fee, and a percentage -based management fee to be
paid at the end of the year based on exceeding projected income amounts. The
percentage -based management approach has been used with success at Desert Willow
in that an operator has incentive for exceeding revenue goals. The YMCA has indicated
that they feel this approach does not fit the Aquatic Center because we are dealing with
a higher level of safety. After extensive discussion, staff and the YMCA have agreed to
the first one-year extension that pays the YMCA a monthly fixed management fee of
$7,500. The City also reimburses the YMCA for indirect administration costs which are
will be billed based on actual hours spent and will not exceed $42,000 per year. The
provision dealing with the percentage -based management fee has been deleted. The
City will likely issue a Request for Proposals for FY 2013/2014 as part of the budget
process, and will look to include a strong incentive based management approach.
Fiscal Analysis
Staff presented a budget of $1,288,871.38 at the City Council budget meeting of April
30, 2012. Exhibit B of the First Amendment indicates a total expenditure of
$1,304,871.38, representing a net increase of $16,000 from what the City Council
reviewed at the budget study session.
Prepared By: Depart
yan Stendell
Senior Management Analyst
Paul S. Gibson, Director of Finance
roval:
n M. Wohlmuth, City Manager
Mark G ee wood, P.L1
Directof of Public Works
CITY COUNCIL ACTION
APPROVED ✓ DENTED
RECEIVED OTHER
AYESrQ(l l
NOES:
ABSENT: C
ABSTAIN:
VERIFIED BY:
Original on File with City Urk's Office
CONTRACT NO. C29401
FIRST AMENDMENT TO AGREEMENT
WHEREAS, the City of Palm Desert ("City") and Family YMCA of the Desert
("Consultant"), entered into an agreement, dated February 10, 2011, to provide Management and
Operations Services at the Palm Desert Aquatic Center ("Agreement'), the parties wish to amend
the Agreement effective July 1, 2012.
NOW, THEREFORE, the parties agree as follows:
A. (1) Term is amended to add the following paragraph to the end of the existing section,
as amended.
"The term of this Agreement is extended, and shall include the time period from July 1,
2012, through June 30, 2013."
B. (5) Fixed Management Fee: The first paragraph of section 5 is amended as follows:
The CITY agrees to pay the CONSULTANT a monthly fixed management fee of
11 000.00 ("Fixed Management Fee"). The Fixed Management Fee shall be paid
monthly, in arrears, within 30 days of receipt of the invoice.
C. (6) Percentage Management Fee shall be deleted in its entirety.
D. Exhibit B ("Program Budget') has been amended for FY 2012/2013 and is included herein.
E. All other terms and conditions of the Agreement shall remain unchanged, and shall remain
in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed
the day of , 2012.
CITY OF PALM DESERT Family YMCA of the Desert
A Municipal Corporation
Robert A. Spiegel, Mayor
Attest:
Rachelle D. Klassen, City Clerk
City of Palm Desert, California
Approved as to Form:
Robert Ballew, CEO
Approved as to Content:
Mark Greenwood, P E.
Director of Public Works
David J. Erwin, City Attorney
CONTRACT NO. C29401
CONTRACTOR NOTARY ACKNOWLEDGMENT
State of California }
} SS
County of Riverside }
On 20 , before me, , a Notary Public, personally
appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
Signature
(Seal)
CITY NOTARY ACKNOWLEDGMENT
State of California }
)SS
County of Riverside }
On 20 , before me, , a Notary Public, personally
appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
Signature (Seal)
EXHIBIT B
PALM DESERT AQUATIC CENTER PROGRAM BUDGET FY 12/13
2012-2013
G/LNumbers
Description
Propoa.dFy1v13Budol
REVENUE:
3-1.41-1310-12-00
PD Aquatics Daily Admissi
373,000.00
3-1.41-1310-12=00
PD Aquatics Daily Admissi
0.00
3-1-41-1320-12-00
PD Aquatics Daily Admissi
0.00
3.1-41-1320.12.00
PD Aquatics Daily Admissi
0.00
3.1.41.1320.12.00
PD Aquatics Program Incom
105,000.00
3-1-41-0150-12-00
Rental Equipment
2,700.00
3-1-41-0151.12-00
Rental Income
64,500.00
3-1-41-0310.12-00
Aquatics Special Event
2,200.00
3-1-41-1410-12-00
Food Income
49,500.00
3-1-41-1415.12-00
Beverage Income
18,5DO.D0
3-1-41-1417.12-00
Resale Income
5,050.00
TOTALREVENUE
620450.00
SALARIES:
3-1-41-2112-12-00
Salaries Manager
69,996.DO
3-1-41-2115-12-00
Salaries Maintenance
46,200.00
3-1-41-2120-12-00
Salaries Swim Instructor
37450.00
3-1-41-2122-12-00
Salaries Life Guards
320 577.00
3-1.41-2124.22-00
Salaries Concession
23,340.00
3-1-41.2125.12.00
Salaries Supervisor Program
39264.00
3-1-41-2127-12-00
Salaries Pool Supervisor
34.000.00
3.1.41.2152.12.00
Salaries Customer Svc
83,105.00
3.1.41.2210.12.00
Health Insurance UP
12,78000
3-1-41-2220-12-00
Retirement
6,74B.00
3.1-41-2300.22.00
Payroll Tax Exp
50 025.80
3-1.41.2320.12.00
Unemployment Expense
22,887.62
3-1-41-2330-12-DO
Workers Comp Exp
19 617.96
TOTAL SALARIES
765 991.38
OTHER EXPENSES:
3.1.41.2442.12-00*
Contract Svc Maintenance
75,000.0D
3-1.41-2510.12-00
Office Supplies
4,250.00
3-1.41-2520-12-00
Janitorial Expense
15,OOD.00
3-1-41-2540-22-00
Program Supplies
4,30D.00
3-1.41-2545-12-DD*
Pool Chemical Expense
90,000.00
3-1-41-2548.12-00
Concession Supplies
1,000.00
3-1.41-2550-12-DO
Food Expense
18,500.00
3-1-41-2552-12-DO
Beverage Exnse
6,500.00
3-1-41-2570.12.00
Merchandise/Soft goods
2,95D.00
3-1-41-2572-12-00
Merchandise/Logo
1,050-00
3-1-41-2610-12-00*
Telephone Expense
3,750.00
3-1-41-2611-12-OD
Manager Cell Phone Expense
480.06
3-1-41-2710-12-00
Postage Exp
1,500.00
3-1.41.2820.12.OD
Fingerprints/Medical Clearance
2,550.00
3-1-41-2831-12-00*
Electricity
90,000.00
3.1-41-2832-12-00*
Gas
20,000.00
3.1.41-2836-12-00*
Water
9,000.00
3-1-41.2841-12-00
Maim&Repair Bldg
1,500.00
3.1-41.2910.12.00
Rental Equipment
1,000.00
3-1-02-3108-12-oD
Other Special Event Expense
1,000.00
3-1-41-3110.12-DO
P/R Marketing Exp
12,500.00
3-1-41-3120-12-00
Printing
6,000.00
3-1-41-3351-12-00
Training/Conference
4,000.00
3-1-41-3520-12-00
Dues/Organizational
500.00
3-1-41-37fi0-12-00
Bank Charges
8,050.00
3-1-41.3830.12.00
Insurance Expense
15,000.00
3-1-41-3900-12-00
Miscellaneous Expense
7,100.00
First Aid
1,000.00
3-1-41-39OG-12.00
Employment Promo/Staff App
400.00
3-1-41-3992-12-00
Employee Uniform Exp
3,000.00
Management Fee
90,000.00
Admin Fee lenled Eased oo aceval e.peosesl
42,000.00
Total Other E ens"
538 880.00
Total Salaries & Other Ex stress
1,304,871.38
NET INCOME! LOSS
684,421.38
Expenses noted with * are paid directly by City staff.
FOR YOUTH DEVELOPMENT
FOR HEALTHY LIVING
FOR SOCIAL RESPONSIBILITY
February 22, 2012
Mr. John Wohlmuth, City Manager
City of Palm Desert
73-510 Fred Waring Dr.
Palm Desert, CA 92260
Dear John,
In February of 2011, our YMCA entered into an agreement with the City of Palm
Desert to manage the Palm Desert Aquatic Center. The staff and Board of this
YMCA feel this first year has been a great partnership with the City of Palm Desert.
We see the Aquatic Center as an important link in providing recreation and fitness
programs to our community. The YMCA wishes to continue our management
agreement of the Aquatic Center, for the maximum time the City can authorize.
Sincerely,
Rob Ballew
Executive Director
Family YMCA of the Desert
FAMILY YMCA OF THE DESERT
43-930 San Pablo Ave., Palm Desert, CA 92260
760-341-9622 Fax:760-779-9651
www.ymcaofthedesert.org