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Santa Moniea`°
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
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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 year-
round 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.
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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 $1,686,098, 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 $1,991,000 and $2,293,000, 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
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Reference Contract No.
9045 (CCS).