SR 02-26-2019 3E
City Council
Report
City Council Meeting: February 26, 2019
Agenda Item: 3.E
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To: Mayor and City Council
From: Karen Ginsberg, Director, Community & Cultural Services
Subject: Extension of Lifeguard Services Agreement with Los Angeles County
Recommended Action
Staff recommends that the City Council authorize the City Manager to n egotiate and
execute a first modification to agreement #9045 in the amount of $150,000 with the
County of Los Angeles for lifeguard services. This will result in a 15-year amended
agreement with a new total amount not to exceed $43,533,594, with future year funding
contingent on Council budget approval.
Summary
The current ten-year agreement with Los Angeles County for lifeguard services at Santa
Monica State Beach expires on April 21, 2019. The agreement provides for a one -time
five-year extension, upon mutual agreement by the City and County, which increases
the term to 15 years. Staff of both agencies have reviewed the current level of service
and agree that the terms of the current agreement sufficiently fulfill public safety needs.
The annual payment formula would remain the same, with a total of approximately $17
million in payments over the five years from the Beach Fund. In addition, a one-time
appropriation from the Beach Fund of $150,000 for major repairs over the five-year
period would be recommended as part of the FY 2019-20 Exception Year CIP Budget.
Discussion
The City has contracted with Los Angeles County to provide lifeguard services at Santa
Monica State Beach since 1974. 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. Staff assigned to Santa Monica include two captains, 19 ocean
lifeguards, and ocean lifeguard specialists. Specialized equipment such as emergency
response vehicles, rescue boat, and a helicopter are provided by the County of Los
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Angeles Fire Department as part of the emergency response. The County is often the
first responder to emergencies on the beach, in the water, and on or near the Pier.
City Council approved the current ten-year agreement on March 24, 2009. The
agreement expires on April 21, 2019 and includes a five-year extension option by
mutual agreement. The contract’s funding formula covers 100% of the County’s actual
operating costs, a percentage of the County’s administrative overhead, and an annual
Consumer Price Index (CPI) adjustment. Funding for lifeguard services is covered by
the Beach Fund; the recent ten-year projection includes both the operating and capital
costs proposed in the five-year extension. The FY 2018-19 contract amount is
$3,171,186; the City will have paid approximately $26 million over the ten-year
agreement period. Exhibit A shows the actual contract payments and includes annual
estimates for the five-year extension, based on CPI and overhead projections, for total
payments of approximately $17 million over the next five years.
The current agreement also includes $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. All but $23,000 of the
$485,000 has been used to renovate and repair the facility, including repainting the
exterior, replacing the roof, installing a new storage shed, upgrading the security
system, installing a generator, and renovating and updating the kitchen and office space
to provide required overnight accommodations. A portion of the remaining $23,000 will
be used to repair and repave the parking lot at the headquarters. Staff is recommending
that an additional $150,000 from the Beach Fund be allocated for major repairs over the
five-year extension period as part of the FY 2019-20 Exception Year CIP Budget. These
funds would be used for additional identified repairs including replacement and
improvements to the fence around the headquarters, repainting the building, and other
major repairs during the five-year period.
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Representatives of the Fire, Finance, and Community and Cultural Services
departments met with the County Fire Chief Deputy, Deputy Chief, and Acting Chief
Lifeguard in July 2018 to review the current level of services and costs. Although costs
continue to rise each year, primarily due to an increase in overhead and recent
negotiated salary increases for County Fire Department employees, staff recommends
staying with the current terms for the next five years rather than negotiating a new
agreement. Since the base costs are set and the variables of CPI and overhead are
known historically, there would be predictability of the contract costs. As beach
attendance continues to increase, (there were 18 million visitors in 2017 according to
the lifeguard counts), it would not be in the public interest to reduce service levels or
make changes to the operation. Lifeguard performance is consistently rated high by
City departments and the public, and there is a long history of cooperation among the
public safety agencies serving Santa Monica State Beach. There are no viable
alternatives to a contract with the County for lifeguard services. As part of the contract
review in 2009, staff estimated that it would cost the City $5 million annually to provide
the same services. Those costs would be considerably higher at current salary rates.
Past Council Actions
Meeting Date Description
03/24/09 (attachment B) Approval of agreement with Los Angeles County for lifeguard
services
Financial Impacts and Budget Actions
Staff seeks authority to increase the amount of the contract with Los Angeles County for
Lifeguard Services The contract extension is for five years.
Contract Modification Request
Agreement # Current
Authorized
Amount
Modified
Request
Amount
FY 2018-19
Account Number
Total Contract
Amount
9045 $25,898,594 $17,000,000 11400001.552010 $42,898,594
9045 $485,000 $150,000 C1105280.689000 $ 635,000
$43,533,594
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Future year funding is contingent on Council budget approval.
Prepared By: Judith Meister, Beach Manager
Approved
Forwarded to Council
Attachments:
A. Exhibit A Contract Payments
B. Exhibit B: Lifeguard Contract 2009
Lifeguard Contract Payments
Actual thru 2018-19 and Projected thru 2023-24
Exhibit A
Base Amount
December
CPI %CPI Amount
Adjusted
Base Cost
Overhead
%
Overhead
Amount
Subtotal
Amount
Catch -up
Payment
Total Annual
Payment Fiscal Year
1,576,564 0.00%- 1,576,564 9.50%149,774 1,726,338 1,726,338 2008-09
1,576,564 -0.60%(9,459) 1,567,105 19%297,750 1,864,854 100,000 1,964,854 2009-10
1,667,195 2.50%41,680 1,708,874 13.77%235,312 1,944,187 100,000 2,044,187 2010-11
1,808,782 1.60%28,941 1,837,723 13.51%248,276 2,085,999 100,000 2,185,999 2011-12
1,937,723 2.20%42,630 1,980,353 13.34%264,179 2,244,532 100,000 2,344,532 2012-13
2,080,353 2.00%41,607 2,121,960 14.31%303,652 2,425,612 100,000 2,525,612 2013-14
2,221,960 1.20%26,664 2,248,623 14.53%326,725 2,575,348 100,000 2,675,348 2014-15
2,348,623 0.30%7,046 2,355,669 17.01%400,581 2,756,250 100,000 2,856,250 2015-16
2,455,669 1.90%46,658 2,502,327 21.70%543,030 3,045,357 3,045,357 2016-17
2,502,327 2.20%55,051 2,557,378 18.41%470,685 3,028,064 3,085,269 2017-18
2,557,378 2.40%61,377 2,618,755 18.41%481,982 3,100,737 3,171,186 2018-19
2,618,755 2.40%62,850 2,681,605 18.40%493,415 3,175,020 3,175,020 2019-20
2,502,327 1.70%42,540 2,544,867 21.24%540,530 3,085,396 3,085,269 2017-18
2,544,866 1.47%37,282 2,582,148 22.81%588,988 3,171,186 3,171,186 2018-19
2,582,148 1.42%36,667 2,618,815 24.51%641,872 3,260,686 3,260,686 Projected 2019-20
2,618,815 2.00%52,376 2,671,191 23.00%614,374 3,285,565 3,285,565 Projected 2020-21
2,671,191 2.00%53,424 2,724,615 23.00%626,661 3,351,276 3,351,276 Projected 2021-22
2,724,615 2.00%54,492 2,779,107 23.00%639,195 3,418,302 3,418,302 Projected 2022-23
2,779,107 2.00%55,582 2,834,689 23.00%651,979 3,486,668 3,486,668 Projected 2023-24
Lifeguard Contract Payments
Actual thru 2018-19 and Projected thru 2023-24
Exhibit B
Base Amount
December
CPI %CPI Amount
Adjusted
Base Cost
Overhead
%
Overhead
Amount
Subtotal
Amount
Catch -up
Payment
Total Annual
Payment Fiscal Year
1,576,564 0.00%- 1,576,564 9.50%149,774 1,726,338 1,726,338 2008-09
1,576,564 -0.60%(9,459) 1,567,105 19%297,750 1,864,854 100,000 1,964,854 2009-10
1,667,195 2.50%41,680 1,708,874 13.77%235,312 1,944,187 100,000 2,044,187 2010-11
1,808,782 1.60%28,941 1,837,723 13.51%248,276 2,085,999 100,000 2,185,999 2011-12
1,937,723 2.20%42,630 1,980,353 13.34%264,179 2,244,532 100,000 2,344,532 2012-13
2,080,353 2.00%41,607 2,121,960 14.31%303,652 2,425,612 100,000 2,525,612 2013-14
2,221,960 1.20%26,664 2,248,623 14.53%326,725 2,575,348 100,000 2,675,348 2014-15
2,348,623 0.30%7,046 2,355,669 17.01%400,581 2,756,250 100,000 2,856,250 2015-16
2,455,669 1.90%46,658 2,502,327 21.70%543,030 3,045,357 3,045,357 2016-17
2,502,327 2.20%55,051 2,557,378 18.41%470,685 3,028,064 3,085,269 2017-18
2,557,378 2.40%61,377 2,618,755 18.41%481,982 3,100,737 3,171,186 2018-19
2,618,755 1.42%37,186 2,655,941 24.51%650,971 3,306,913 3,306,913 Projected 2019-20
2,655,941 2.00%53,119 2,709,060 23.00%623,084 3,332,144 3,332,144 Projected 2020-21
2,709,060 2.00%54,181 2,763,241 23.00%635,546 3,398,787 3,398,787 Projected 2021-22
2,763,241 2.00%55,265 2,818,506 23.00%648,256 3,466,763 3,466,763 Projected 2022-23
2,818,506 2.00%56,370 2,874,876 23.00%661,222 3,536,098 3,536,098 Projected 2023-24
REFERENCE:
Modified
Contract No. 9045
(CCS)