The URL can be used to link to this page

Home My WebLink AboutC33470 - Negotiate Opeartions at the PDAC Contract No. G33470 CITY OF PALM DESERT CITY MANAGER'S OFFICE STAFF REPORT REQUEST: CONSIDERATION FOR APPROVAL TO AUTHORIZE STAFF TO NEGOTIATE A NEW OPERATIONS CONTRACT WITH THE FAMILY YMCA OF THE DESERT FOR SERVICES AT THE PALM DESERT AQUATIC CENTER. SUBMITTED BY: Ryan Stendeil, Senior Management Analyst CONTRACTOR: Family YMCA of the Desert 43-930 San Pablo Avenue Palm Desert, California 92260 DATE: April 10, 2014 CONTENTS: Correspondence from YMCA Recommendation By Minute Motion, direct staff to negotiate a new operations contract with the Family YMCA of the Desert (YMCA) for services provided at the Palm Desert Aquatic Center. Backqround The YMCA was selected as the operator of the Palm Desert Aquatic Center in early 2011. Not knowing how the first several years of operations would go, staff was apprehensive to propose a long term agreement for operations services. The City Council in 2011 approved staff's recommendation of a one-year agreement with the option of two one-year e�ctensions. The contract as approved today provides reimbursement to the YMCA for all expenses related to the Aquatic Center, and a management fee paid to the YMCA on a monthly basis. The total budget for the Aquatic Center(utilities included) is approximately 1.3 million dollars. Since the grand opening of the facility in June of 2011 the YMCA has done a good job in managing this facility. The YMCA conducted a nationwide hiring campaign which resulted in the selection of Ms. Karen Creasey to manage the facility. This turned out to be a wise choice as Ms. Creasey has represented both the YMCA and the City in an extremely positive manner. The staff at the Aquatic Center has invested a lot of time and energy into making this a successful facility. As a result the City will likely realize its cost recovery goal of 60% in year 3 rather than in year 5 as originally proposed. For these reasons staff is somewhat apprehensive about starting over with any new Contract No. C33470 Staff Report Authorize Negotiations with YMCA for a New Operations Contract April 10, 2014 Page 2 of 2 operator of the facility. Staff is recommending that the City Council authorize staff to negotiate a new agreement with the YMCA which would continue the successful operations of Aquatic Center. Fiscal Analvsis The initial contract with the YMCA is expiring at the end of this fiscal year. The YMCA has indicated they are happy with the terms of the agreement including the management fee included in the budget. The YMCA's only request is to have a longer term for the agreement. If approved by the City Council, staff will review options for a longer term, negotiate a new agreement with the YMCA, and bring it back to the Council for review. Submitted By: Revi d and Concur: yan Stendell Paul Gibson, Director of Finance Senior Management Analyst CITY COUNCIL�ON APPROVED DENiED App� vaL RECENED OTHER �� n. MEETI G D - U �- I � � AYES: �� 6171 ' � C' 'e Gf/ �I', � /) ' J n M. Wohlmuth, City Manager NOF,S: � ABSENT: � ATiSTAIN: VI;RIF[ED BY: � Original on File with City erk's Office * Approved the recommendation, with additional direction that �taff negotiate a five-year contract. 5-0 CITY 0 � Pfll �l DES � R1 73-510 FREll WARING DRIVE PALM DESERT, CALIFORNIA 92260-25�8 TEL: �60 346-o6i� F�vt: 760 340-0574 info@palm-deser t.org OFFICEOFTHE CITY MANAGER February 21, 2014 Family YMCA of the Desert Rab Baliew, CEO 43-930 San Pablo Ave. Palm Desert, California 92260 Dear Mr. Ballew: Subject: Proposed Contract Amendment at Palm Desert Aquatic Center I am in receipt of your email dated February 5, 2014, regarding extending the operations contract at.the Palm Desert Aquatic Center (PDAC). I would like to commend the YMCA and staff for all efforts on behalf of the City. The PDAC has become a popular attraction and is providing recreation opportunities to many of Palm Desert's residents and CoacheUa Valley swimmers. I am supportive of taking a request to the City Council recommending we negotiate a long-term contract with the YMCA as you have proposed. However, I would propose that we keep the management fee at $132,000 annually with a CPI increase in year three of the contract. If you concur with this amount, I will place an item on the next City Council agenda requesting approval to negotiate a new contract with the YMCA. If you believe the management fee should be greater, I offer you an opportunity to justify the increase to City staff. Please let me know if you have any additional questions or comments. 1 can be reached at {760) 346-0611 extension 305, or by email at iwohlmuthCa�city_ofpalmdesert.orq. Sincerefy, OHN M. WOHLMUTH CITY MANAGER JMW:rs � �^,,�� From: � YM A O(a�aol. om To: \Nohimuth.lohn Cc: vwalker(a�desertvmca.ora:]LATTING(aIRHLAWFIRM.COM;kcreasey123(a�q�nail.mm;Stendell.Rvan Subject: CiTY OF PD AQUATIC CENTER CONTRACT Date: Friday,March 21,2014 3:35:58 PM Attach ments: 20140225130935224.odf March 21, 2014 John Wohlumth city manager Palm Desert re: PDAC contract Dear John In reference to your letter dated 2-21-2014 proposed contract amendment PDAC Please move forward with the management fee of$132,000 as part of the long term contract befinreen the city and YMCA. We enjoy the partnership and look forward to a continued relationship of serving our community. Please advise me as when this will be on the council agenda so i can be there to answer any questions. s�N�E,PE�� PIIB BffLLEl.t/ FAMILY YMCA OF THE DESERT CEO WK 760-341-9622 CEL 760-485-2968 �