sr-041012-3gCity Council Meeting: April 10, 2012
Agenda Item: 3 °C-1
To: Mayor and City Council
From: Karen Ginsberg, Community and Cultural Services Director
Subject: Request for Rejection of all Bids Received for Surf Camps and Classes
Recommended Action
Staff recommends that the City Council:
1. Reject all bids received for City surf camps and classes.
2. Direct staff to proceed with offering a second Independent Provider permit to Perfect
Day Surf Camp in lieu of awarding a City Provider contract.
Executive Summary
In November, 2011 the City issued a Request for Proposal (RFP) for youth surf camps
and classes on Santa Monica State Beach for June 1, 2012 — May 31, 2013. Four bids
were received and evaluated by an independent review panel and by a separate
interview panel. Following this process one of the bidders informed staff that they were
no longer interested in contracting with the City, leaving three remaining bids. Staff has
assessed the City's options and believes it is no longer in the City's best interest to
contract for surf camps and classes. Instead, staff's intention is to offer a second permit
to Perfect Day Surf Camp to independently operate surf camps and classes on Santa
Monica State Beach for July 1, 2012 — May 31, 2013.
Background
On January 22, 2008, City Council amended the City's Municipal Code sections
regarding surfing instruction and group beach and water activities. Pursuant to revised
ordinance sections 4.08.025 and 4.08.060, youth surf camps and all surfing instruction
for compensation must be authorized by the City of Santa Monica. In order to receive
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City authorization and become a City contractor or obtain a City permit, interested
parties are required to respond to an RFP.
Discussion
In November 2011, the City issued an RFP for a City Provider to conduct youth surf
camps and youth and adult surf classes on Santa Monica State Beach for June 1, 2012
— May 31, 2013. The RFP was posted on Planet Bids and the Community Recreation
Division webpage with notices sent to local surf shops and to over 100 contacts on the
City's surfing interest list. Four proposals were received and evaluated by
representatives from the Community and Cultural Services Department, Los Angeles
County Lifeguards, and the City of Manhattan Beach for experience and history,
operations, health and safety, outreach and marketing, proposed fee schedule, and
proposed compensation. The RFP review panel members independently rated each of
the proposals against the evaluation criteria. In addition, an interview panel comprised
of City staff interviewed each of the applicants to aid in the final recommendation.
The recommended bidder, Surf Diva, Inc., has since notified staff that they are no
longer interested in contracting with the City. After careful consideration of the other
three respondents to the RFP, staff is recommending that the City not contract with any
of them. Information has come to light that the respondent that rated second, Surf
Academy Collective, LLC continues to have ongoing federal tax issues, which raises a
high concern that they may be unable to adequately finance their surf camp operations
in the City, perform all terms and conditions of the contract, and complete the City's surf
program, which would adversely impact the community and require greater
expenditures of City resources. Further, subsequent to review of proposals, Surf
Academy Collective, LLC, advised City staff that Surf Academy Collective, LLC, had
been dissolved and that SurfSTAR International, LLC, would take its place; however, no
documentation was provided to support this change. Given the uncertainty of Surf
Academy Collective's ability to finance and sustain the City's surf program, which was
part of the RFP evaluation criteria, and the lack of information regarding their business
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reorganization, staff does not recommend that this respondent be selected. The
remaining two respondents to the RFP, Beach Sports, Inc., and Star -Surf, were not
highly recommended by either the initial review panel or the interview panel. Therefore
staff is recommending that a contract to operate surf camps and classes not be
awarded for FY 2012 -13,
Next Steps
Through an RFP process conducted in 2009, Perfect Day Surf Camp was selected as
the surf camp independent provider and currently holds a City permit at lifeguard tower
6 to operate surf camps and classes. This permit may be renewed for one additional
year and pursuant to the terms of the 2009 RFP the City has the discretion to change
lifeguard tower assignments and the number of permits issued. Therefore, it is staff's
intention to offer Perfect Day Surf Camp an additional permit to operate surf camps and
classes at lifeguard towers 27 -28 for July 1, 2012 — May 31, 2013. Under the second
permit, Perfect Day Surf Camp would offer a similar surf camp and classes program as
a City Provider would have provided.
Financial Impact and Budget Actions
Contract payments for FY 2012 -13 for City contracted surf camps and classes are
included in the FY 2011 -13 budget at account 11522.555010 with anticipated revenues
at account 11522.401311. The net revenue to the City for contracted surf camps and
classes was anticipated to be approximately $30,000 based on the City retaining 20% of
the activity fee. As required by their City permit, Perfect Day Surf Camp provides the
City with 20% of their gross revenues. Therefore, as long as registration for Perfect Day
Surf Camp reaches previous registration levels for contracted City camps and classes,
there will be no net impact on the City's budget.
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In addition, unlike contracted surf camps and classes where the City provides on -site
staffing, handles registration, and markets the program, these responsibilities will be
performed by Perfect Day Surf Camp, thereby saving City staff time and resources.
Prepared by: Kathy LePrevost, Community Recreation Manager
Approved:
Karen Ginsberg
Director, Comm ity and C Iturr
Services Department
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Forwarded to Council:
Rod Gould
City Manager