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Council Meeting DEe 0 9 1991
December 9,1997 Santa Monica, CA
TO Mayor and City Council
From City Staff
Subject RecommendatIon to Authorize the City Manager to Negotiate and Execute
an Agreement with Los Angeles County for lifeguard ServIces
Introduction
ThiS report requests that the City Council authorize the City Manager to negotiate and
execute an agreement wIth Los Angeles County for lifeguard services at Santa Monica
State Beach
Background
Smce 1974 the City has contracted with Los Angeles County to provide lifeguard
servIces at Santa MOnica State Beach Under thIS arrangement, the CIty has paId 36%
of gross revenues received from the operation of the beach, Includmg parkmg lots,
conceSSions, and leases In recent years, the City staff has Initiated diSCUSSions with
both the County and the State on how best to provide the most cost-effective service
while malntalnmg a high level of public safety
Discussion
One of the key considerations m the City's diSCUSSions with the County has been to
develop a compensation formula that IS equitable, predIctable, and reflects the cost of
servIce The percentage of gross revenues formula currently In effect resulted In Wo n
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DEe 0 9 1997
fluctuations from year to year of payments to the County The annual lifeguard
payments for the past fIve years are shown below
Year LJfeauard Payment Gross Revenues
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1992-93 $1,500,651 $3,398,403
1993-94 $ 896,753 $2,451.412
1994-95 $1,364,085 $2,896,176
1995-96 $1,225,348 $3,507,737
1996-97 $1,623,972 $4.511,033
While beach revenues are highly dependent upon weather conditions, the recent
Increase In beach revenues, particularly parking revenues. reflects changes In beach
usage patterns to year-round activitIes such as skating and bicycling, an Increase In
Pier VIsitors and an Increase In those attending speCial events such as the Cirque du
Solell Generally, these activIties have not reqUired an Increase In lifeguard services
The proposed methodology for calculating compensation for lifeguard servIces IS based
upon a flat fee-far-service that the County has Implemented In Its current contracts wIth
other beach cIties The proposed payment IS a flat fee which represents the City of
Santa MOnica's proportIonate share of the total cost of Los Angeles County lifeguard
services City staff has analyzed the County's cost data and apportionment formula
and has determined that the annual payment of $1,158.145 for the base year of the
contract IS reasonable based on servIces provided
Staff also evaluated the cost to the City If \t were to prOVide ItS own lifeguard services
as It did prior to 1974 Based on the current level of lifeguard service that cost would
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exceed the proposed payment amount Since the State no longer provides lifeguard
services, there IS no other contracting option
The proposed term IS five years, begmmng with the current 1997-98 fiscal year The
annual payment will be adjusted each year by the percentage Increase or decrease m
the Consumer Price Index (CPI) The contract Includes a provIsion for carrying over a
portion of the City's obligation If the City encounters cash flow problems due to
fluctuations In beach revenues and also Includes a "meet and confer" provIsion In the
event of a natural catastrophe or extraordinary economIc circumstances The
remaining terms of the contract are similar to the pnor agreement and continue the
current high quality of service and public safety standards
BudaetlFiscallmDact
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The 1997-98 adopted budget Includes a projected payment amount of $1 ,258,095 In
Account 11-400-522-00000-5506-00000, which was based on the percentage-of-
revenue formula under the prior contract The new payment amount for FY 1997-98 IS
$1,158,145 whIch Will result In $99,950 savings to the Beach Fund
Recommendation
Staff recommends that the City CounCil authorize the City Manager to negotiate and
execute an Agreement with Los Angeles County for lifeguard services at Santa Monica
State Beach
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Prepared by Barbara Stinchfield I Director
Judith Meister, Beach Manager
Community and Cultural ServIces Department
Glgl Decavalles-Hughes, Senior Administrative Analyst
Fmance Department
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