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F0610-34, for Operation of Public Swimming Programs at Fremont High School Pool Was Distributed

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F0610-34, for Operation of Public Swimming Programs at Fremont High School Pool Was Distributed REPORT TO MAYOR AND COUNCIL NO: 07·100 March 27, 2007 SUBJECT: Proposals for Operation of Fremont High School Pool REPORT IN BRIEF In July 2000, the City entered into a 25-year agreement with the Fremont Union High School District for the construction and operation of a 50-meter swim pool at Fremont High School. The pool opened to the public in July 2002, and public swim programs have been provided under a license agreement with California Sports Center since that time. The current license agreement expires August 31, 2007. To maintain uninterrupted operation of the public swim programs, staff initiated a process in fall 2006 to solicit proposals from qualified service providers to manage and operate public swim programs at the Fremont High School Pool. On October 30, 2006, Request for Proposals #F0610-34, for Operation of Public Swimming Programs at Fremont High School Pool was distributed. (Please refer to Attachment A - Request for Proposal #F0610-34- issued October 30, 2006.) City staff has prepared a broad overview of the three proposals that resulted from this process and have created an additional alternative of how public swim programs could be provided by the City's Recreation Division should City Council choose to decline all three of the proposals that have been submitted. Based on the scope of programs proposed, the impact to the current users of the pool, California Sport Center's performance over the past five years, and the financial benefit to the City and the Community Recreation Fund, staff is recommending that City Council approve Alternative # 1, direct staff to negotiate an agreement with California Sports Center for the continued operation of the Fremont High School Swim Pool. The Parks and Recreation Commission conducted a public hearing on this report at their regularly scheduled meeting on March 14, 2007, and voted 4-0 (Commissioner Lawson absent) to recommend Alternative No. 1: City Council directs staff to negotiate an agreement with California Sports Center for operation of the Fremont High School Swimming Pool commencing on September 1, 2007 for a period of eight (8) years with two possible additional extensions of five (5) years each. BACKGROUND Over the years, the Sunnyvale Department of Parks and Recreation has provided an extensive array of public swim programs. The City operates summer session aquatics programs at the Washington Park, Lakewood School, Issued by the City Manager Revised 04·12·2004 March 27,2007 Proposals for Operation of Fremont High School Pool Page 2 of32 Columbia Middle School, Peterson Middle School and Sunnyvale Middle School pools. The pool at Washington Park is the only one owned by the City, and additional programming occurs there in spring and fall. Public swim programs are provided at the four other pools through special use agreements between the City and the Sunnyvale Elementary School District and the Santa Clara Unified School District (Peterson). Brief History of the City/School Partnership for the Construction and Operation of a 50-meter Pool at Fremont High School In April 1999, the Fremont Union High School District (FUHSD) contacted the City of Sunnyvale regarding the possibility of joint development of a 50-meter pooL FUHSD indicated that if the City did not choose to enter into joint development of a new pool that the District would plan to build a 30-meter pool. Around this same time, a new community group, the Friends of Fremont Pool, formed for the purpose of providing community support for construction of the proposed 50-meter pool and raising funds to establish a $1,000,000 endowment fund to offset the City's on-going operating costs should the pool be constructed. Friends of Fremont Pool eventually raised $833,001, which is expected to provide an estimated $41,600 towards annual operating costs in FY 2007/2008 and $49,900 in FY 2008/2009. City Council directed staff in June of 1999 to proceed with a feasibility study to consider the proposed City I School District partnership for the development and operation of a 50-meter pool at Fremont High School. Council specifically limited the scope of the study to be undertaken to a 50-meter pool, rather than exploring other configurations and amenities, acknowledging that the minimum pool depth, pool temperature and lane length were most conducive to competitive and lap swimming. There was a great deal of discussion about what type of pool was most needed in the community, and Council was aware of the interest of some citizens in a "community" pool facility which might have included such features as: zero depth entry, play features, slides, etc., but which would not have addressed the needs of adult swimmers. Council chose to move forward with exploring the joint construction of a 50-meter pool, focusing on the needs of adult and competitive swimmers rather than on the broad needs of the general citizenry, in order to take advantage of the partnership potential with the school district and of the money the Friends of Fremont Pool committed to raise on behalf of a 50-meter pool. The study included consideration of a new public shower /locker room facility in order to enable the public to use the new pool when District locker rooms were reserved for use by students and at the same time as school was in session. March 27,2007 Proposals for Operation of Fremont High School Pool Page 3 of32 The results of the study affirmed findings that a 50-meter pool would be most conducive to competitive and lap swimming, and would not be ideal for family swim or other general community uses. The study also highlighted staffs' intent to seek a third party to operate the public use of any new pool as a means of limiting future costs to the City. Following the completion of the study, City Council endorsed the concept of a joint use agreement between the City and the Fremont Union High School District for the construction of a 50-meter pool May 2, 2000. The City entered into a joint use agreement with the Fremont Union High School District on July 18, 2000 to construct and operate the 50- meter pool. The 25-year agreement with the District divides pool use into City, School and shared use times. During the shared use times, the City has a designated number of lanes for use. Based on the District's needs for instructional and competitive use, the number of lanes allocated to the City varies during the day, between the days of the week and throughout the year. The design of the Fremont Pool is specific to the needs and use of high school aged students, and is designed for competitive uses. The shape, depth and temperature of the pool are dictated by high school competitive and instructional needs. This in turn dictates the types of community uses that will best be served by the pool. As part of the project, the District also constructed and provided exclusive use to the City of a public swim building, which contains lockers and shower rooms, offices and a training classroom. The agreement holds the District responsible for all school-related swimming programs and for the maintenance of the swim pool (filtration, heating, vacuuming, etc.) and of the school locker rooms. The cost of the swim pool maintenance is split between the District and City (50% each). In accordance with the agreement the costs for maintenance and utilities for the public swim building are the responsibility of the City. This responsibility has been transferred to the contractor, under the terms of the agreement between the City and California Sports Center. Staff estimates annual costs to be approximately $39,000 were the City to be providing the maintenance itself. Solicitation of Private Entity to Provide Public Swim Programs at Fremont High School Pool When the City entered into the agreement with the Fremont Union High School District, it was determined that the City did not have the staff or budget resources to operate the Fremont High School Pool for public use and a decision was made to locate an outside contractor or organization that would provide public swim programs on behalf of the City. In February 2001, the City issued a request for proposals to manage the public's use of the pool. Two proposals were received; however, they did not adequately address the needs and proposed operations at the pool and they were rejected. March 27, 2007 Proposals for Operation of Fremont High School Pool Page 4 of32 On May 14, 2001, the City issued a second request for proposals to provide public swim programs at the Fremont High School Pool. City staff subsequently began negotiating with the most qualified contractor, California Sports Center (CSC). A Joint Study Session with the City Council and the Parks and Recreation Commission was held on February 4, 2002, regarding pool fees and use schedules. A memo to Council from the Director of Parks and Recreation, dated February 7, 2002, documents the guidance given staff by Council during the February 4, 2002, joint study session with the Parks and Recreation Commission, relative to the 50-meter pool partnership with the Fremont Union High School District. Staff utilized this input in setting priorities and negotiating terms with the California Sports Center for operation of the Fremont Pool. The specific policy guidance provided by City Council included the following: 1. Continue to use established City policy governing the Community Recreation's Enterprise Fund to develop recommended fee schedules for the pool. These policies revolve around market-based pricing, but also include the consideration of resident/ non-resident fee differentials and other subsidies where appropriate.
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