Pool Usage - City of Los Alamitos

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Pool Usage - City of Los Alamitos
City of Los Alamitos
Agenda Report
February 16, 2016
Discussion Items
Item No: 10A
To:
Mayor Richard D. Murphy and Members of the City Council
Via:
Bret M. Plumlee, City Manager
From:
Corey
Subject:
Pool Usage
Lakin, Recreation &
Community Services Director
SummaPy: After several meetings over the last year and a half with staff from the
Joint Forces Training Base ( JFTB), in late January the JFTB and their Morale, Welfare
and Recreation ( MWR) component of the Base, finalized a proposal for the City of Los
Alamitos to use the JFTB pool. MWR will be operating the pool and the JFTB
Department of Public Works (DPW) will be maintaining the pool, giving the City an
opportunity to pay rent in exchange for use of the pool starting March 1, 2016.
Recommendations:
1.
Continue to rent lanes at the Joint Forces Training Base ( JFTB) pool on a per
lane basis for programs in which anticipated expenditures are equal to or less
than the anticipated revenues starting April 1, 2016;
2.
Cease Lap and Recreational Swimming beginning March 1 , 2016 and continue to
offer all other programs through March 31, 2016, completing "Winter" session;
3.
Continue to work with JFTB staff to assist with the transition from the City
operating the facility to Morale, Welfare and Recreation ( MWR) staff operating
the facility;
4.
Help transition the other pool User Groups by continuing to allow them to
sublease" the pool from the City on a per lane basis and charge them the hourly
fees determined by the JFTB, plus staffing costs as required by the JFTB and
MWR starting March 1, 2016;
5.
Provide Lifeguards if needed at the JFTB for a reimbursable cost of $ 15 per hour
per lifeguard until JFTB MWR has their lifeguards hired and working;
6.
Sell any and all lifeguard and pool deck equipment that the City doesn' t need to
the JFTB MWR in
exchange
for
a reduction
in
pool rent;
7.
Authorize the Mayor to execute an agreement approved by the City Attorney that
the
City' s costs, role, staffing requirements, liability, etc., that is
consistent with the current understanding, based upon the information afforded to
the City at this time.
outlines
Background
In early 1996 a Sublicense Agreement between the Military Department of the State of
California and the United Stated Water Polo Federation ( USAWP) was provided for a
twenty ( 20) year term, after USAWP determined the Joint Forces Training Base ( JFTB)
pool would be a good location for training, after having been unused since 1991. In
February 1998, the Mayor met with representatives from USAWP, the California
National Guard, the County of Orange, the City of Cypress, Los Alamitos Unified School
District, Shore Aquatics, and the private spa and pool industry to gauge support for
restoring the 50 meter pool to full operational use. In October 1998, the City signed a
Modification to Sublicense" with three parties on the modification: the JFTB, USA
Water Polo Federation and the City of Los Alamitos. The agreement placed
responsibility on the City to assume all rights and responsibilities for the renovation,
maintenance and operation of the pool for the benefit of current and potential users. The
City, over the next 18 years, spent millions of dollars in upgrades, renovations, and daily
maintenance and operations of the pool to get it to being one of the busiest pools in
Southern California with nearly 250, 000 people visiting the pool annually.
In light of the ending lease agreement on February 29, 2016, several meetings between
the JFTB and City staff and elected officials took place over the past year and a half.
Originally, there were various options presented to the City for operations and
maintenance of the pool including a very expensive " License AgreemenY' and then the
JFTB Morale, Welfare, and Recreation ( MWR) assuming control of the pool starting
September 1, 2016.
in mid- January, Mayor Murphy, Mayor Pro Tem Hasselbrink, City Manager Plumlee,
and
Recreation &
Community Services Director Lakin met with Brigadier General ( BG)
Reddicks and seven of his staff to receive a briefing on the transition of the pool back to
JFTB MWR starting March 1, 2016, with the City and all other user groups, except USA
Water Polo, paying $ 150 per hour to rent the pool ( USA Water Polo would continue to
pay what they are currently paying through the 2016 Olympics). After a request by
Mayor Pro Tem Hasselbrink to keep the current rental prices in place for the next six
months during the " transition- period", BG Reddicks agreed to take a closer look at the
costs and determine a final cost.
On Monday, February 1, 2016, Mayor Murphy, City Manager Plumlee, Administrative
Services Director AI- Imam,
and
Recreation &
Community Services Director Lakin met
with BG Reddicks and his team again and received the pool rental costs for the City and
other User Groups. This document was revised on February 9, 2016, providing the pool
users with a three month " phasing- in" period for the pool rental fees. This means that
renters of the pool ( except USA Water Polo) would pay $ 62 per hour in the months of
March, April
and
May,
and
starting in June, $ 98 per hour to rent the entire pool. JFTB
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and MWR staff explained that the pool would be divided into 18 " short course" lanes
and 8 " long course" lanes in order to be rented at a per- lane hourly cost of $ 5. 45 per
hour ( short course) or $ 12. 25 per hour ( long course) when the fee is $ 98 per hour.
When the pool rent is $ 62 per hour, the hourly fees are anticipated to be $ 3. 45 per hour
short course) or $ 7. 75 per hour ( long course). The JFTB said that the City and USA
Water Polo would begin as the only " renters" of the pool until the other User Groups
transition to individual agreements with JFTB MWR.
Discussion
Since the final costs for pool rent were determined by the JFTB, City staff has looked at
each aquatic program the City offers to determine the anticipated expenditures and
revenues for the remainder of this fiscal year and next fiscal year.
For this fiscal year, it is anticipated that the JFTB MWR will not have their staff in place
by March 1, 2016, as they are scheduling to review the applications for the three
positions
starting the
week of
February 15'". In the meantime, JFTB staff and the MWR
Council will operate the pool. Therefore, in order to not disrupt the current Winter
session of City programs and ease the transition for the other pool User Groups, staff is
recommending renting the pool for all City- operated programs ( except Lap Swimming
and Recreational Swimming) through the end of March 2016. Lap Swimming will result
in significant expenditures with minimal revenues due to the unknown daily attendance
and since Recreational Swimming is free to the public, it would operate at a loss.
Additionally, during this transition, staff is recommending continuing to sublease the
pool to the other User Groups ( except USA Water Polo) at the cost the JFTB is charging
the City for the per lane pool rent. If the City is required to provide Lifeguards, then the
City will seek a credit of $ 15 per hour per lifeguard from MWR, since their hourly charge
includes lifeguards, or, the City will charge the User Groups an additional $ 15 per hour
per lifeguard. Staff will work with MWR and the User Groups to have them sign their
individual contracts with MWR by April 1, 2016 or sooner, at which time the City will only
rent pool space for City-operated programs. If the transition takes longer, the costs for
pool rent to the other groups would be the same in April and May as in March, and
therefore staff would recommend assisting until May 31, 2016.
City staff will continue to work with JFTB and MWR staff to help with a smooth transition
and to aid in reducing the cost of rent for the City. If the City needs to provide lifeguards,
the City will seek a reduction of rent, since the hourly rental rate quoted by MWR
includes the cost of lifeguards. Additionally, the City can sell its lifeguard and pool deck
equipment to JFTB MWR at " fair market value" in order to further reduce the cost of
renting the pool.
Once the transition is complete and MWR is fully staffed, City staff is recommending
only continuing programs that are revenue- direct expenditure neutral or better. These
programs include swimming lessons (group, private and semi- private) and possibly
Deep Water Aerobics, Masters swimming, and Junior Lifeguards. These three programs
are typically breakeven or provide more revenue than the direct expenditures. Staff
recommend continuing to offer swimming lessons year-round since the cost of providing
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lessons and revenues taken in are equivalent. Deep Water Aerobics is more popular
during the warmer months, so staff recommend offering this program for six months out
of the year, as long as the costs and revenues are equal or better. Additionally, staff
plan to speak with the current Masters swimmers to determine if they are willing to pay
more and/ or meet less in order to continue having the program offered at the JFTB pool.
Currently, the program meets five days a week for an hour and a half each day and with
15- 18 members swimming daily, the program does well. However, in order for the
program to break even, the monthly cost for the program would need to increase from
69 per month to at least $ 85 per month, plus the cost of
United States Masters
Swimming ( USMS) membership, which is $ 54 for the calendar year. Lastly, based on
the current model for Junior Lifeguards, registration would need to be at least 20
participants in order for the program to break even. Therefore, if enough registration is
accepted, then staff would recommend offering the Junior Lifeguard program.
The other City-offered programs ( Lap Swimming, Recreational Swimming, Junior
Lifeguard Conditioning Camp, Lifeguarding, and Water Safety Instructor) are not
recommended to be continued due to the significant expense for renting pool space and
the uncertainty as to the number of participants who would register consistently. This
would be recommended for one year, or as long as the current fees from MWR are in
place, at which time a reevaluation of the aquatics program could be determined at that
time. Lap Swimming is a drop- in program with an unknown number of paid attendees
each day and the JFTB staff said they would likely be offering a similar program.
Recreational Swimming is free and therefore would just cost the pool rent with no
revenue. Junior Lifeguard Conditioning Camp, Lifeguarding and Water Safety Instructor
were already breakeven programs that had fluctuating participation. Therefore, with the
pool rent added into the cost, these programs would end up costing the City more and
therefore, is not recommended to be continued.
The City is recommending retaining all of its Water Safety Instructors due to the
continuation of the programs at the JFTB, but ceasing the hiring of Lifeguards and
training of current staff in American Red Cross Lifeguarding. Since the JFTB MWR staff
is lifeguarding for all programs at the pool, the City does not and should not continue to
train the staff in Lifeguarding due to the additional liability and repetitive nature of doing
so. Rather, the City staff will focus on teaching children and adults to be water safe
through swimming lessons and Junior Lifeguards and physically fit through the Masters
swimming program and Deep WaterAerobics.
Staff has spoken with nearly all of the current User Groups who utilize the JFTB for their
training, matches and meets to discuss the implications on each organization. Most
organizations have expressed concerns about the significant increase in pool rent.
While none have indicated that they will completely cease their aquatics programming
at the JFTB, several have indicated they have begun searching for less expensive
venues. Likely at least one or two of the groups will vacate the JFTB pool in the near
future.
Staff is also looking into other alternatives. This includes vacating the JFTB pool for
another pool like the Los Alamitos High School pool. Under the current agreements, the
City would not be required to pay pool rent at LAHS, but pay for a custodian to open
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and close the pool, costing $ 58 per hour for that individual' s salary and benefits. While
this cost is more expensive than renting the JFTB pool, it leaves open the possibility for
discussion with the Los Alamitos Unified School District for a Joint Use Agreement that
would enable the City to utilize the high school pool for future aquatics programming.
Additionally, this summer, the high school is expected to undergo major repairs,
possibly closing much of the campus for activities. Therefore, staff would not
recommend moving the City programs to the high school this summer.
As of February 10, 2016, the City has not received an agreement from the JFTB nor
MWR for usage of the pool starting March 1, 2016. If the City does not receive an
acceptable agreement, and consensus between the entities cannot be reached, the City
will not operate any programs nor provide any lifeguards until an agreement is signed
by both parties. Unfortunately, this provides little time for the City to review and make
changes to any proposed agreement from the JFTB and MWR; however, the liability of
aquatics activities and lifeguarding is extremely high and therefore City sanctioned
aquatic activities are not recommended until an agreement is in place.
Fiscal Impact
The Aquatics Division has typically operated on a breakeven basis with expenditures
generally offset with revenues. However, in FY 2015- 16 revenues are projected to be
261, 065 and expenditures are projected to be $ 309, 248. The program deficit in FY
2015- 16 of $ 48, 183 is largely due to pool maintenance repairs. Based on the new
arrangement with the JFTB, the City will no longer receive revenue from user groups for
use of the pool. However, the City will no longer be responsible for the repair or
maintenance of the pool nor will the City be responsible for utility costs or lifeguards.
The City will lease the pool on an hourly basis at $ 5.45 per lane. Recreation plans to
continue providing swimming lessons, which will operate on a break- even basis. The FY
2016- 17 preliminary General Fund budget includes $ 142, 360 of revenue and $ 132,466
of expenditures. The FY 2016- 17 expenditure budget includes $ 100, 000 in staffing
costs with the balance related to pool rent and supplies.
Submitte
By:
Approved By:
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Recreation &
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Bret M. Plumlee
Community
Services Director
City Manager
Fiscal Impact Approved By:
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Jason AI- Imam
Administrative Services Director
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February 16, 2016
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