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Home My WebLink AboutC29402B - FY 2013-14 - Mgmt-Opratns Svcs at PDAC Contract No. C29402B CITY OF PALM DESERT CITY MANAGER'S OFFICE STAFF REPORT REQUEST: APPROVE CONTRACT NO. C29402B, A ONE-YEAR EXTENSION WITH THE FAMILY YMCA OF THE DESERT, FOR MANAGEMENT AND OPERATIONS SERVICES AT THE PALM DESERT AQUATIC CENTER FOR FY 2013/2014 SUBMITTED BY: Ryan Stendell, Senior Management Analyst CONTRACTOR: Family YMCA of the Desert 43-930 San Pablo Ave. Palm Desert, CA 92260 DATE: June 13, 2013 CONTENTS: Second Amendment to Agreement YMCA Correspondence Recommendation By Minute Motion: 1. Approve Contract No. C29402B, 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 Second Amendment. Funds are available in Fund 242 Accounts and have been included in the proposed FY 2013/2014 operating budget. Back�round At its meeting of February 10, 2011, the City Council awarded Contract No C29400B to The Family YMCA of the Desert. The contract includes all management and operations services for the Palm Desert Aquatic Center and provides for finro extensions of one year each. Staff has been very pleased with the first and second years 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 52 percent recovery rate for the third full year of operations and is hopeful that number will be exceeded. Exhibit B of the Second Staff Report Family YMCA of the Desert Second Amendment to Agreement June 13, 2013 Page 2 of 2 Amendment outlines the total program budget for FY 2013/2014, which is inclusive of all utilities and maintenance expenses paid to operate the facility. YMCA is requesting to carry forward the contract for one more year with no changes from the second year's agreement. Revenues are doing well, and expenses are slightly down over year one. Year one's final recovery rate was 52%; staff is estimating a higher return in year finro, but it will not be known until year-end. Staff will prepare a year-end report and present it to the Council, likely in August. Fiscal Analvsis Staff presented a budget totaling $1,310,134.00 during the budget sessions in April with a projected income of $680,234.00 representing a 52 percent recovery goal. Staff has continued to increase the yearly recovery expectations similar to that shown in the original Ballard King report that was created prior to the opening of the facility. Our goal is to achieve the 60 percent recovery goal initially desired by the City Council. Prepared By: Review a d oncur: Ryan Stendell Mark Gre n ood, P.E. Senior Management Analyst Director o P blic Works CITY COUNCtL��TION APPROVED DENiED aul S. Gib on, Director of Finance RECEIVED OTHER MEET ��,DA � � ; AYES:��C App val: NOES: C..� ABSEN'I: � ABSTAIN: J M. Wohlmuth, City Manager VERIFIED BY � Original on File with City� rk s Office CONTRACT NO. C294026 SECOND 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, 2013. 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, 2013, through June 30, 2014." B. (5) Fixed Manaaement Fee: The first paragraph of section 5 is amended as follows: The CITY agrees to pay the CONSULTANT a monthly fixed management fee of an amount not to exceed 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) Percentaae Manaqement Fee shall be deleted in its entirety. D. Exhibit B ("Program BudgeY') has been amended for FY 2013/2014 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 , 2013. CITY OF PALM DESERT Family YMCA of the Desert A Municipal Corporation Jan C Harnik, Mayor Robert Ballew, CEO Attest: Approved as to Content: Rachelle D. Klassen, City Clerk Mark Greenwood, P .E. City of Palm Desert, California Director of Public Works Approved as to Form: David J. Erwin, City Attorney CONTRACT NO. C294026 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) CONTRACT NO. C29420B EXHIBIT B PALM DESERT AQUATIC CENTER PROGRAM BUDGET FY 13/14 2073-2014 G/LNumbers DescripGon PtO�a�13f78"tl�°� I REVENUE: 3-1-91-1310-12-00 PD Aquatiu Daily Admissi 373,000.00 3-1-41-1310-12-00 PD Aquatics Daily Admissi 0.00 3-1d1-1310.12-00 PD Aquatics Daily Admissi 0.00 3-1-91-1310-12-00 PD Aquatiu Daily Admissi 0.00 3-1-41-1320.12-00 PD Aquatics Program Inwm 105,000.00 3-1-41-0750-12•00 ReMal E ui meM 2,700.00 3-1-41-0151-12-00 Rentailncome 64,500.00 3-1-41-0310-72-00 A uatics S ecial Event 2,200.00 3-1-41•1410-12-00 Food Income 53,000.00 3-1-47-1415-12-00 Bevera e Income 19,500.00 3-1-41-1417-12•00 Resalelncome 10,000.00 TOTAL REVENUE �9��•� SALARIES: 3-1-41-2112-12-00 Salaries Manager 71,000.00 3-1-41-2115-12-00 Salaries Maintenance 45,000.00 3-1-41-2120-12-00 Salaries Swim Instructor 37,450.00 3-1-03-2122�12-00 Salaries Life Guards 325,577.00 3-1-41-2124-12-00 Salaries Concesslon 23,807.00 3-1-41-2125-12-00 Salaries Su ervisor Pro ram 40,000.00 3-1-41-2127-12-00 Salaries Pool Supervisor 34,000.00 3-1-41-2152•12-00 Salaries Customer Svc 75,000.00 3-1-41-2210-12-00 Health Insurence Ezp 22,000.00 3-1-41-2220-12-00 Retirement 6,800.00 3-1-41-2300-12-00 Payroll Tax Exp 51,000.00 3-1-41-2320-12-00 Unemployment Expense 23,000.00 3-1-41-2330-12-00 Workers Comp Exp 20,000.00 TOTAL SALARIES 774,634.00 OTHER EXPENSES: 3-1-41-2492-12-00* Contrect Svc Maintenance 75,000.00 3-131-2510-12-00 Office Supplies 4,250.00 3-1-91-2520-12-00 lanitorial Ezpense 8,800.00 3-1-41-2540.12-00 Progrem Supplies 4,300.00 3•1-01-2545-12A0* Pool Chemical Expense 89,020.00 3-1-41-2548-12-00 Concession5upplies 1,000.00 3•1-43-2550-12-00 Food Expense 18,500.00 3-1-41-2552•12-00 Beverage Expense 6,500.00 3-1-41-2570.12-00 Merchandise 5,000.00 3-1-41-2610.12-00* TelephoneEapense 3,750.00 3-1•41-2611-12-00 Manager Cell Phone Expense 480.00 3-1-41-2710•12-00 PostageExp 1,500.00 3-1-41-2820-12-00 finger rints/Medfcal Clearente 2,550.00 3-1•41-2831-12-00* Electricfty 90,000.00 3-1-41-2832-12-00* Gas 13,000.00 3-1-01-283612-00* Water 9,000.00 3-1d1-2841•12-00 Maint&Repair Bidg 5,000.00 3-1-41-2910-12-00 Rental Equipment 1,000.00 3-1-41d108-12-00 OtherSpecialEventEzpense 1,000.00 3-1-41d110-12-00 P/RMarketingExp 20,000.00 3-1�413351-12-00 Troining/Conference 4,000.00 3-1-913520-12-00 Dues/Or anizational 500.00 3-1-41•3760-12-00 Bank Charges 13,500.00 3-1-41-3810•12-00 Insurance Ezpense 15,000.00 3-1-41-3900-12-00 Miscellaneous Expense 4,000.00 First Aid 700.00 3-1�1-3980-12-00 Employment Promo/Staff App 400.00 3-1-913982-12-00 Empioyee Untform Exp 3,000.00 * Regulatory Permit fees' Z��`��04 . Management Fee 90,000.00 Admin Fee�eniee nasea on a«uai exoenses� 42,000.00 Total Other Ex enses 535 800.00 Total Salaries&Other Ex nses 1,310,134.00 NET INCOME/LOSS 680,234.00 Expenses noted with*are paid directly by City staff. 1 From' nPCPrt�A�FOCa)aoLmm To: S nd il.Rvan Subject: does this work? p�; Tuesday,May 07,2013 1:4726 PM May 7, 2013 To Ryan Stendell From Rob Ballew CEO YMCA of the Desert RE: contract extension The Family YMCA of the Desert,would like to request the extension of our contract(contract number c29401), with the city of Palm Desert for the operation of the Palm Desert Aquatic Center. This extension would be for the fiscal year 2013-2014. It has been our honor to be part of the partnership with the city in the opening and development of this wonderful aquatic center. siNCE�E��! �PDB Bf�ILEk/ FAMILY YMCA OF THE DESERT CEO WK 760-341-9622 CEL 760-485-2968