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sr-032409-1bc7r __ ~~~Y of 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 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 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. 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 $1,686,098, 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 3 Reference Contract No. 9045 (CCS).