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City Council Report
City Council Meeting: March 24, 2009
Agenda Item: r~
To: Mayor and City Council
From: Barbara Stinchfield, Director, Community & Cultural Services Subject: Contract with the County of Los Angeles for Lifeguard Services on Santa Monica State Beach
Recommended Action
Staff recommends that Council (1) authorize the City Manager to negotiate and execute a new contract with the Los Angeles County Fire Department for lifeguard services on Santa Monica State Beach and (2) appropriate additional funds in the amount of 66,806 for FY 2008-09.
Executive Summary
The City contracts with the Los Angeles County Fire Department ( LACED) to provide year-round lifeguard services on Santa Monica State Beach. The current agreement expired in December 2006 and LACED has since been operating on a month to month term pending a new agreement. The proposed new lifeguard agreement has a term of ten years with a five year extension option by mutual agreement. The contract will escalate the City's reimbursement of County expenses from 30-40% to 100%, starting with a 6% increase in the first year's annual payment followed by an annual increase based on CPI plus a $ 100,000 escalator plus a percentage of the County's administrative overhead. The estimated value of the 10-year contract is $28 million.
The FY 2008-09 contract increase requires an additional appropriation of $66,806. The future annual increases to the contract will be ircluded in the City's FY 2009- 10Proposed Budget and the FY 2010-11 Budget Plan. The contract also provides 485,000 in previously ear-marked funds for capital improvements to the lifeguard headquarters facility. Funds for the initial annual increases have been included in the City's FY 2008-09 Budget and FY 2009-10 Budget Plan.
Discussion
Since 1974, the City has contracted with Los Angeles County to provide lifeguard services at Santa Monica State Beach. Services provided under the agreement include lifeguard coverage for the entire beach seven days a week, year-round; 24-hour a day emergency response for regional emergencies; and 24-hour a day paramedic support to the community. Equipment provided by the County as part of this service includes four 1 emergency response vehicles, rescue boat, and Black Hawk helicopter. The County is often the first responder to emergencies on the beach, in the water, and on or near the Pier.
The current agreement expired in December 2006 and IACFD has since been operating on a month to month term pending a new agreement. The proposed new agreement with the County uses the same County structure for the delivery of yearround services as previous agreements and has a term of ten years with a five year extension option by mutual agreement. To bring the City's reimbursement level in line with the County's actual operating costs, the proposed contract will escalate the City's reimbursement to County from 30-40% to 100% of costs, starting with a 6% increase in the first year's
annual payment followed by an annual increase based on CPI plus a 100,000 escalator. The proposed contract also includes a percentage of the County's administrative overhead, which had not been included in previous agreements.
In addition, the proposed contract provides $485,000 in previously appropriated funds for capital improvements to the lifeguard headquarters facility. These funds were accumulated in the previous contract for the purpose of improving or expanding the Lifeguard Headquarters located at 1642 Ocean Front Walk. The headquarters was built in the 1950s and is owned by the City of Santa Monica. While the County has made extensive repairs to the structure over the years, the building is in need of substantial renovations and improvements to continue to be a viable facility for lifeguard operations.
The accumulated $485,000 will be used by the County for renovation, replacement or expansion of lifeguard facilities as approved by the City. Beyond this amount, the City will not be obligated to provide for capital improvements but, as the building owner, agrees to attempt to identify funding for such improvements from various sources such as the recent federal economic stimulus package.
2 The remaining terms of the agreement are similar to the prior agreement and continue the current high quality of service and public safety standards.
Financial Impacts & Budget Actions
The estimated value of the 10-year contract is $28 million. The estimated cost of the contract for FY 2008-09 is $ 1, 098, 686, which requires an additional budget appropriation of $66,806 to account 11522.555060 to fund the contract for the remaining months of FY 2008-09. The estimated cost of the contract in FY 2009-10 and FY 2010-11 will be approximately $1, 000991, and $2, 000, 293, respectively. Funds for the annual increases in the contract will be included in the City's FY 2009-10 Proposed Budget and the FY 2010-11 Budget Plan in account 11522.555060.
Alternatives
Staff prepared an initial estimate of the cost of providing lifeguard services directly through the City. The cost for year one would be approximately $5 million and would escalate each year with changes in the Consumer Price Index for expenses and Cost Of Living Adjustments for staff.
Prepared by: Callie Hurd, Open Space Manager
Approved: Forwarded to Council:
Barbara Stinchfield ,~~ L!amont Ewell
Director, Community & Cultural Services LZity Manager
3 Reference Contract No.
9045 (CCS).
AN AMENDMENT TO THE COMMUNITY RECREATION AGREEMENT
2 FOR LIFEGUARD SERVICES BETWEEN THE COUNTY OF LOS ANGELES 3 AND CITY OF SANTA MONICA
4 5 This amendment to the Community Recreation Agreement for Lifeguard Services 6 ("Agreement") is made and entered into on the 21st day of April , 20jjL_, 7 by and between the City of Santa Monica, hereinafter referred to as "CITY," and the County 8 of Los Angeles, hereinafter referred to as "COUNTY."
9 10 RECITALS
11 WHEREAS, the CITY and COUNTY entered into the above-referenced Agreement on 12 Apri121, 2009, which allowed the COUNTY, through the Consolidated Fire Protection District 13 of Los Angeles County (DISTRICT) to provide lifeguard services within the CITY for a period 14 of 10 years, with one optional5-year extension; and
15 WHEREAS, the CITY and the DISTRICT mutually desire to amend the Agreement to 16 extend the term of the Agreement for one optional 5-year extension; and 17 WHEREAS, the CITY and the DISTRICT mutually agree that the CITY shall continue 18 to set aside additional funds for the purpose of maintaining the Lifeguard Headquarters 19 located at 1642 Ocean Front Walk ("Major Repairs Reserve Fund") during the 5-year 20 extension.
21 NOW, THEREFORE, IN CONSIDERATION of the promises, covenants, 22 representations, and agreements set forth herein, the parties mutually agree as follows:
23 1. This amendment shall extend the Agreement for an additional five-year period unless 24 action is taken by either party to terminate by giving at least two years' advance written 25 notice to the other party of its intention to terminate. 26 2. Both the CITY and the DISTRICT acknowledge the importance of maintaining the 27 Major Repairs Reserve Fund for the purpose of improving and repairing the Lifeguard 28 -I-
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Headquarters. As part of the adoption of its FY 2019-20 Budget, the CITY shall set aside and make available an additional $150,000 for the Major Repairs Reserve Fund for the DISTRICT to utilize during this 5-year extension period.
All other terms and conditions of the Agreement shall remain the same and in full force and effect.
1 IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the 2 date first written above.
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CITY OF SANTA MONICA
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8 9 DATEJY\~ [4 WI] I
10 11 APPROVED AS TO FORM :
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14 By d--~~ 15 City Attorney
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28 CONSOLIDATED FIRE PROTECTION
DISTRICT OF LOS ANGELES COUNTY
By ~(d;J
DATE t;J/;:n 17
APPROVED AS TO FORM:
MARY C. WICKHAM
County Counsel
By c,WA..
Deputy ~sJh
ATTEST:
By: ~Jtn~t~ DENISE ANDERSON-WARREN
City Clerk