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. 2. Continue to establish pool schedules administratively, using the following priorities as general guides: • A commitment to first expand and serve the needs of the adult swim community-particularly the establishment of a consistent, year-round lap swim schedule. Beyond this, other uses of the pool should be governed by: • The City's Enterprise Fund philosophy and market demand/ pricing. • To the degree that it can be accomplished within the context of the guidelines given above for both fees and use schedules, Council did express an interest in, and encouraged staff to pursue (through negotiations with the contractor}, a broad array of swim opportunities (specifically lap swim, masters, swim opportunities for children in grades K-12, swim lessons, and recreational/family swim opportunities) as opposed to a narrow scope of programs. Current Agreement with the California Sports Center for the Provision of Public Swim Programs at the Fremont High School Pool On May 21, 2002, City Council approved a 63 month (5 V. year) license agreement with California Sports Center (CSC) to provide for public swim programs at the Fremont High School 50-Meter Pool. The agreement required the contractor to provide, to the degree possible within the context of market- March 27, 2007 Proposals for Operation of Fremont High School Pool Page 5 of32

based programming, a broad array of swim opportunities such as lap swim, masters programs, swim opportunities for children in grades K-12, swim lessons for all ages, and recreational/family swim opportunities, diving, water exercise classes, and safety and training classes. The agreement required no payment to the City for the first 6 months (July through December of 2002) to allow the contractor to make an investment in equipment, supplies and staff training and to develop swim programs and create a customer base before making substantial payments for facility use. Payments increased over the following years to reflect growth in the swim programs and increasing revenues. The Licensee was required to assume responsibility for payment of water, gas and electric for the swim building (not the pool), garbage for any City and/ or contractor programs, and maintenance of the interior of the public swim building. Under the supervision of California Sports Center, Fremont High School 50- Meter Pool opened to the public for the first time on July 2, 2002. Since this time, performance by the California Sports Center has been consistent with the operational agreement. Customer satisfaction surveys conducted by the contractor reflect the general public's satisfaction with their programs and services. Additionally, CSC staff has been responsive to all requests for information made by staff and questions that have been raised by members of the public. During the period of this license agreement, City staff has from time to time received complaints from the public primarily related to the temperature of the public swim building. Unfortunately, when the building was constructed the thermostat for the building was connected to the school's control unit and the City and the licensee are unable to control the temperature in the locker rooms of the public swim building. In addition, the building does not have air conditioning and can get quite warm during the summer. Staff has had a series of discussions with the school district staff in an attempt to resolve this situation; however, as yet there has been no resolution. A former employee of the Licensee has made repeated allegations of unsafe conditions at the pool. City staff has investigated these allegations and discussed the issues raised with the contractor. While there is always room for improvement in any operation, staff found the contractor's safety regulations and policies to be consistent with or exceeding those used in City aquatics programs and no significant issues were identified. A recent customer satisfaction survey showed that over 95% of the surveyed customers indicated they were "Very Satisfied" with programs, services and the level of safety provided by California Sports Center. While the genesis of the Fremont High School (FHS) project was to provide a venue for adult lap swimming and the only program related requirement in the existing agreement is a mandated minimum number of lap swim lanes and set March 27, 2007 Proposals for Operation of Fremont High School Pool Page 6of32

daily times (Please refer to page 14 -- Schedule Requirements -- of Attachment A: Request for Proposal #F0610-34 - issued October 30, 2006,) both City Council and members of the public have expressed interest in the scope of programs offered at the Fremont High School Pool and the operational cost to the City for the pool and related programs.

Financial Performance for the Operation of the Fremont High School Pool Operations for Public Use The following chart provides fiscal details for City revenues and expenditures related to the operation of the Fremont Pool under the current agreement with California Sports Center. FHS Swim Pool Revenue from Revenue from City's Net Operational Contract Endowment Operational (Loss)/ Year Operator Fund Costs Gain to City - 'FY'o21o3 $11,636 $93,316 $120,161 ($15~209)* FY 03/04 $36,951 $32,335 ($117 ,849) ($48,563) FY 04/05 $47,121 $25,748 ($82 ,385)** (:J9,516) FY 05/06 $51,000*** $32,402 ($121,659)*** (IJ38,257)

Budget for FY $51,000 $41,600 ($129,928) (:J37,328) 06/07 *This represents the first year of the contract. Per the Agreement with the Contract Operator, no payment was required for the first six months to allow for start up costs associated with the new program. In addition, Endowment Fund revenue for this year is higher than in subsequent years because it represents the pooling of interest accrued since the start of the Endowment Fund in 1999. **Based on invoices received from FUHSD it appears utility and maintenance costs for the year were much lower than other years. However, staff believes this may have been a one-time anomaly. ***One $12,000 payment from CSC was recorded as a credit against expenses, artificially lowering City's recorded operational costs while understating revenues from the contractor. Here the table is adjusted to show the corrected revenues and operational costs. EXISTING POLICY The following sections of the City's Open Space and Recreation Sub-Element, address issues of operating and contracting for the operation of the public's use of the Fremont High School Swim Pool and providing swim programs to the public: March 27, 2007 Proposals for Operation of Fremont High School Pool Page 7 of32

Open Space and Recreation Sub-Element Policy 2.2 B.4. Use entrepreneurial strategies to identify and reach new markets for programs, services and revenue generation, and to strengthen relationships within existing markets. Policy 2.2 B.6. Leverage available resources by pursuing co-funded and/or cooperative agreements for provision and maintenance of programs, facilities, and services, in order to maximize benefits to the community. Partners may include, but are not limited to, school districts, non-profit groups, governmental agencies and businesses. Policy 2.2 D.l. Give priority to services, facilities and amenities that are not readily available through other providers within or near Sunnyvale. Policy 2.2 D.3. Give priority to services, facilities and amenities that fulfill a basic need or teach basic skills (e.g., non-competitive, developmental sports instruction such as learn to swim given priority over competitive sports programming). Policy 2.2 D.4. Give priority to services, facilities and amenities in which the community demonstrates interest. Policy 2.2 D.S. Give priority to services, facilities and amenities that benefit a greater number of residents. Policy 2.2 D.7. Give priority to services, facilities and amenities that can be used by multiple users or serve multiple purposes. Policy 2.2 E.3. Provide recreation and enrichment programs, services, facilities and amenities to underserved areas and/or populations of the City. Underserved areas and/ or populations could be due to geography, gender, economics or ethnicity, etc. The following sections of the City's Fiscal Management Sub Element also address issues of operating and contracting for the operation of the public's use of the Fremont High School Swim Pool: Fiscal Management Sub-Element- Community Recreation Fund Policies The General Fund subsidy received by the Community Recreation Fund shall be fixed at the FY 2006/2007 level as the base year and increased annually by the inflation factor included in the recommended budget for the upcoming year. Any increase in service levels by City Council not covered by an increase in revenues will result in a corresponding increase to the General Fund subsidy. Any action by City Council to decrease revenues of the Community Recreation Fund not covered by a decrease in operating costs will result in a corresponding increase to the General Fund subsidy. March 27,2007 Proposals for Operation of Fremont High School Pool Page 8 of32

Council Policy 7.3.6: Managing for Competitiveness Guidelines, 1: The premise of this policy is that competitive service delivery produces value for City residents and that either in-house or alternative service delivery methods may produce superior service value. Guidelines, 5: In situations involving currently contracted-out and new services, a similar process will be used to determine if the City can deliver the service competitively... The external service provider will be retained unless City staff can demonstrate the cost and quality effectiveness are equivalent to or greater than the external service provider or where the potential savings from outside service delivery is greater than the projected cost of basic transition and ongoing service delivery costs for the same level of service. Guidelines, 10: Ensure Managing for Competitiveness Efforts Result in the Desired Service Outcomes. Whether a service is retained in-house or delivered by an external service provider, the City should seek to ensure that desirable quality and cost outcomes are met. In order of priority, desired managed competition outcomes are:

e Better service at lower cost. • Better service at equal cost. • Equal service at lower cost If at least one of the desired service outcomes cannot be clearly identified at the conclusion of a managed competition process, the current service provider (City staff or external provider) will retain the service. Service Selection Criteria (excerpts). • Nature of service: the extent to which a service is self-contained or a component of a larger service delivery system. • Cost Savings Potential: The degree to which managing competitively is likely to reduce or avoid future costs without compromising the quality of the service.

DISCUSSION The current license agreement with the California Sports Center for public use of the Fremont High School pool expires on August 31, 2007. To provide adequate time for an operator (new or existing) to implement, plan, advertise, staff and train for the operation of public swim programs beginning September 1, 2007, the City initiated a "RFP" process on October 30, 2006 (Please see Attachment A: Request for Proposal #F0610-34- issued October 30, 2006.) March 27, 2007 Proposals for Operation of Fremont High School Pool Page 9of32

Staff determined that the Request for Proposals process was most appropriate for this contract. Unlike an Invitation for Bids, which requires contract award to the lowest responsive and responsible bidder, a Request for Proposals allows proposal evaluation based upon factors in addition to price. It is also worth pointing out that this it technically not a "purchase" and, therefore, is exempt from the City's standard competitive bidding requirement. Solicitation of Qualified Proposals On October 30, 2006, the City issued Request for Proposal (RFP) #F0610-34 for Operation of Public Swimming Programs at Fremont High School Pool. The RFP sought proposals from qualified individuals or organizations interested in entering into a long-term agreement to provide public swim programs at the Fremont High School Pool, commencing on September 1, 2007. The RFP was developed based on previous Council policy direction for establishing pool schedules, consistent with the guidance provided by City Council at the February 4, 2002, Study Session which was also stipulated in the current license agreement with California Sports Center. In the RFP, the City sought an operator who shares and will incorporate the City's values of safety, customer service and fiscal responsibility, as well as the willingness to provide a broad array of public swim programming at the Fremont High School Pool. As specified in RFP #F0610-34, the City's specific objectives in selecting a pool operator are: A. To enter into a long-term business relationship with an effective entity to operate the Fremont High School public swimming programs. (The City prefers to enter into a license agreement with a single provider.) B. To provide a safe, cheerful, wholesome, comfortable and service-friendly atmosphere in which patrons can enjoy swimming activities. C. To ensure the provision of quality swimming programs and services in the following order of priority: • Adult lap swimming (The minimum required lap swim schedule was identified in RFP); • Other adult swimming programs such as Masters swim or other competitive programs, classes, water exercise, etc); • Other youth or community activities (lessons, competitive swimming, recreation or family swims, etc.). D. To establish an equitable, fair and just level of financial return to the City. E. To establish appropriate staffing levels, qualifications and responsibilities to ensure the provision of safe, quality programs. March 27, 2007 Proposals for Operation of Fremont High School Pool Page 10 of32

Proposals Received in Response to RFP #F0610-34 A pre-proposal walkthrough of the Fremont High School pool facility was held on November 15, 2006. Subsequently, proposals were received from two non­ profit organizations and one for-profit business. Three (3) proposals were submitted to the City for evaluation by staff. The three proposers are: 1. California Sports Center (Please refer to Attachment B.) 2. Northwest YMCA (Please refer to Attachment C.) 3. Santa Clara Swim Club (Please refer to Attachment D.) Evaluation criteria were established to help staff objectively evaluate the proposals and to identify the most qualified proposer(s), those with expertise and experience in the provision of public swimming programs. These criteria were provided to potential proposers in the RFP documentation and are listed below: Evaluation Crj_teria A. Completeness of Proposal and Adherence to Specified Format

B. Proposed Services • Proposer background information • Proposed swimming programs or service and proposed staffing • Proposal for use and/ or remodel of swim building and facility • Proposal for replacement of equipment and furnishings • Safety Plan • Start up strategy (if appropriate) C. Financial and Longevity Aspects of Proposal • Financial return to the City (amount and whether equitable throughout the license agreement term) .. Yearly Operations Summary (clarity and completeness of business plan and whether plan is realistic) • Start up strategy (completeness of financial statements and whether proposer is capable of supporting future obligations) • How long proposer has been in business • Length of time for proposed agreement

Individuals and organizations interested in submitting proposals were instructed to include specific information and to present the information in a pre-defined format. During the review process, it was necessary for staff to contact Northwest YMCA and Santa Clara Swim Club to obtain missing or incomplete information and also to ask them for additional or clarifying information. March 27, 2007 Proposals for Operation of Fremont High School Pool Page 11 of32

Assuming Council was to select one of these proposers, staff would begin negotiations with that organization, clarify any remaining issues and request modifications to the base proposal as necessary. This could include changes to the proposed schedule for hours available for family swim. However, to the degree that any City desired changes were made that impact the profitability of a contractor's proposal, the contractor may request corresponding adjustments to the planned payment to the City.

Evaluation of Proposals Staff reviewed each of the three proposals that were submitted based on the criteria that were included in the RFP. Listed below for comparison are the more critical factors affecting the evaluation of each proposal that was submitted for consideration, along with the pros and cons of each proposal. It should be noted that if Council were to modify its existing policy significantly as it pertains to priorities and policies for operating the Fremont Pool, the evaluation of the three proposals that have been received would also change. Additionally, it may be necessary to reject all three proposals and solicit new proposals based on any new policy or modified policy. For example, if lap swimming and other adult swim opportunities were no longer the top priorities for programming, the respondents to the RFP as well as other potential service providers would need to be given the opportunity to propose a program to address the new priorities. Those proposals would likely have different cost and revenue models associated with them.

A fourth alternative to the three proposals is also provided at the end of this section of the report, which considers City Recreation Division operation of the Fremont High School Pool. A summary table comparing the four alternatives is included at the end of this section.

Proposal One- California Sports Center ICSC) A. Completeness of Proposal and Adherence to Specified Format: • Provided all information requested in the RFP in first submittal.

B. Proposed Services: • esc is a for-profit corporation. esc operates seven different sports training facilities in Sunnyvale, San Jose and Santa Clara, focusing on aquatics and gymnastics programming. • CSC proposes a mix of community swim programs including adult lap swim, masters, water exercise, senior swims and rates, adult and youth lessons, youth competitive swim readiness, open swim, youth and adult water polo, camps, safety training, rental use/ outside facility group use (rent by the lane hour f swim meets). Their proposal meets or exceeds minimum required swim schedule for lap swimmers March 27, 2007 Proposals for Operation of Fremont High School Pool Page 12 of32

requested in the RFP. Resident and non-resident rates apply utilizing City-supplied differential. No membership criteria are proposed. The esc staffing plan is adequate to provide programming as proposed. • The CSC proposal provides for full public (non-high school) use of the swim building and facility and programs the pool from 5:30 a.m. until 10:00 p.m. weekdays and 7:00a.m. until 7:00p.m. on weekends for a variety of community uses. This includes daily lap swimming times and "Open Swim" times from mid-June to mid- August daily Monday through Saturday from 1:00 - 3:00 p.m. with additional "Family Swims" from June 1 - September 30th on Fridays from 6:30 - 8:00 p.m. and Sundays from 6:00" 7:30p.m. The contractor also proposes working with City to: ~ Add air conditioning and/ or improve air circulation to the locker rooms; ~ Add a cover or awning over the main office door for greeting customers; ~ Build a more permanent cover for the waiting area/bleachers for parents of students in lessons; and ~ Add lane line reels for 50 meter dedicated use. • Proposal addresses replacement of equipment and furnishings. Includes plans to add electronic security in and around the pool building with particular view of deck. • Provides a detailed emergency action plan and safety information. • esc has a designated safety coordinator. • No start up strategy is needed, as the contractor is the current licensee operating the pool on behalf of the City.

C. Financial and Longevity Aspects of Proposal • Offers an established and increasing annual payment to the City over the proposed eight years of the agreement - $48,000 each year for the first three years; $51,000 each year for the second three years and $54,000 each year for the last two years. It should be noted that this contractor in its existing contract has been paying the City $48,000 a year, plus an end of the summer payment, which was $4,000 for FY 2006/2007. • esc provided a clear, complete and realistic business plan. • esc provided complete financial statements supporting its ability to manage the programs at Fremont Pool throughout the proposed contract period. • esc has been in business since 1987, has operated a pool at Blackford High School in San Jose for 10 years and the Fremont High School Pool for approximately five years. • esc proposes an eight (8) year agreement with two additional five [5] year extensions. March 27,2007 Proposals for Operation of Fremont High School Pool Page 13 of32

D. Snapshot of Performance as Existing Licensee. Since California Sports Center is currently providing the services at Fremont High School Pool, their performance is relevant. • Over 95% of customers from a recent customer satisfaction survey indicated they were "Very Satisfied" with programs, services and safety. • The CSC program has grown to almost $438,000 in gross revenues annually with a return to the City of $48,000 annually. It should be stressed that gross revenue does not equate to net profit, but serves as one indicator of the volume of revenues or participation at the Fremont Pool. The City does not require the contractor to report net profit as payments are based on a predetermined flat fee rather than a percent of profit and cannot provide an accurate estimate of this figure. • Participation in the public swim programs at Fremont Pool (excluding use by the high school) has included more than 20,000 participant hours for lap swim; 4,000 participant hours for recreation/open swim and over 2,500 participant hours for lessons. • The mix of service (or programming) has included more than the required amount of lap swimming, in addition to youth and adult lessons, family swim times, a masters program, rentals to the Sunnyvale Swim Club and other private groups.

Pros and Cons of Proposal One - California Sports Center Pros: e The California Sports Center offers a good quality swimming program using nationally recognized certifications (American Red Cross). & The California Sports Center proposal would continue to provide a broad mix of community swim programs, and would meet the City's requirements for adult lap swimming. o Because this proposer has been operating the Fremont High School Pool for the City, they already possess an understanding of the City/District agreement and have established excellent working relationships with both agencies. (Please refer to Attachment E - Letter of Support from Fremont Union High School District in Support of California Sports Center.) "' There would be no start-up period with CSC, allowing for the continuation of existing programs with minimal disruption to the public. • The CSC proposal guarantees the highest level of financial return to the City of all four proposals. • The CSC proposal would insulate the City from any increases in costs for providing the public portion of the Fremont High School Pool operations while guaranteeing a rate of return to the City for term of agreement, thus managing any negative impact on Community Recreation Fund. March 27, 2007 Proposals for Operation of Fremont High School Pool Page 14 of32

Cons: • Despite the fact that CSC has met all requirements in its existing contract and proposes to continue providing a broad array of programming, some members of the public perceive there to be a conflict of interest in allowing any for-profit entity to provide services on behalf of the City.

• The guaranteed payment offered in the current proposal is less than what CSC currently pays to the City. Staff believes that this could be negotiated.

Proposal Two - Northwest YMCA A. Completeness of Proposal and Adherence to Specified Format • The initial YMCA proposal was incomplete as they did not provide all of the information requested in the RFP. Despite a request for additional information the YMCA proposal remains incomplete and does not include yearly operations business plan summaries for the last three years of the proposed five year agreement as requested in the RFP.

B. Proposed Services

& The YMCA is a not-for-profit organization with many years of financial stability and experience in providing high quality "learn to swim" programs and other types of aquatics programming. • The YMCA proposal offers a good mix of community swim programs including adult lap swim, youth swim team, water exercise, rehabilitation, family swim/ events, lessons, springboard diving, synchronized swimming classes, fitness classes, masters swimming and youth and adult water polo. The YMCA use plan exceeds the minimum required swim schedule for lap swim and their staffing plan is adequate to provide programming as proposed. • As a membership based organization, the proposed fee schedule is grouped into three priority levels: :1> Priority level #1 - Sunnyvale residents and YMCA facility members (individuals or families paying monthly dues which in turn allows them to access all YMCA facilities in the Santa Clara Valley- currently set at $71/Bay Area adult plus one time enrollment fee of $75 or $122/Bay Area family plus one time enrollment fee of $125); );- Priority level #2 - YMCA Program members ($25 annual fee, allowing individuals and families to enroll in YMCA programs); and, );- Priority level #3 - Non-Sunnyvale residents. March 27, 2007 Proposals for Operation of Fremont High School Pool Page 15of32

If Council were to select this proposal, staff would work with the YMCA organization to clarifY how these priorities would actually affect participants, particularly Sunnyvale residents. • The proposal provides financial assistance for families who are unable to pay for programs and services. • The YMCA proposes no changes or remodeling work to the swim building and facility. Maintenance of the public swim building would be done by YMCA staff. • The YMCA proposal programs the pool for public (non-high school) use from 6:00 a.m. until 8:30 p.m. weekdays and 7:30 a.m. until 1 p.m. on weekends for a variety of community uses. This includes daily lap swimming times and weekday "Open Swim" times. A listing of the equipment and furnishings that the YMCA will provide are included in the proposal. • Proposal includes a good safety plan and information regarding: YMCA standards and guidelines for instructor/ guard to participant ratios and skills taught; requirements and training for staff; and a brief outline of how specific emergency situations would be addressed (rescue, first aid, lightning, fog, chemical imbalance, turbidity, contamination, earthquake and missing person). • The YMCA proposal does not provide a detailed start up strategy for operating public swim programs at the Fremont High School Pool, time line or approach to initiating activities there. The proposal does identify desired staffing levels, provide a draft programming schedule, detail how supplies and computers would be ordered and who would manage the overall operation.

C. Financial and Longevity Aspects of Proposal

$ The YMCA does not include offers of payment to the City in the first year of operation. Revenue payments to the City in future years are based on "revenue sharing" with payments of 50% of the YMCA's net profit, starting with the second year of operation. The YMCA has not provided an estimate of what the projected net profit will be, in fact showing a projecting a net loss for both years of budget data provided. s The YMCA business plan is incomplete and does not include any estimates of net income, upon which a financial return to the City is based. • The YMCA provided independent auditors' report and financial statements showing the financial position of the organization. The organization has substantial assets. • The YMCA has been in business for 150 years and Northwest YMCA is in its 34th year of operation. • The YMCA proposes a minimum of a five (5) year agreement. March 27,2007 Proposals for Operation of Fremont High School Pool Page 16 of32

Pros and Cons for Proposal Two - Northwest YMCA Pros: • The YMCA offers a good quality, nationally recognized swimming program • The YMCA currently offers community swim programs in the area. • The Northwest YMCA proposal includes a broad array of swim activities for all ages. • The Northwest YMCA's organizational objectives are generally compatible with City Parks and Recreation objectives.

Cons: • The YMCA does not provide any guarantee of financial return to the City but instead only a percentage of net revenue sharing in exchange for exclusive use of the public portions of the Fremont High School Pool schedule. This proposal offers the lowest level of financial return to the City of the three formal proposals. The budget data provided (for two years only) projects a net loss for both years. • The hours of operation proposed by the YMCA are far less than the current operator, i.e. only open until 1 p.m. on weekends. e The proposed profit sharing payments to the City creates a complex process, which would involve defining what revenues and expenses are to be considered in determining "net profit'' and would result in the need to examine financial records frequently and audit the results. e The YMCA proposal would make Fremont High School Pool into a membership facility. While Sunnyvale residents would seem to get the same rate as those who are members of the YMCA (without having to become members), it could be confusing to the public. Additionally, non-Sunnyvale residents who are members of the YMCA would potentially receive the same benefits as Sunnyvale residents. o Establishing a new operator at the pool will result in some level of disruption to the public now using the facility. o The current licensee, CSC, pays the full cost of water, gas and electric for the swim building and garbage for City and licensee's programs. This proposal does not clearly address the cost of the swim building utilities. This issue could have a negative impact on the financial return to the City depending on the outcome of final negotiations for an agreement.

$ The Northwest YMCA proposal would insulate the City from any increases in costs for providing the public portion of the Fremont High School Pool operations but would not guarantee any rate of return to the City for the term of agreement.

Proposal Three - Santa Clara Swim Club A. Completeness of Proposal and Adherence to Specified Format • The initial Santa Clara Swim Club proposal was incomplete as they did not provide all of the information requested in the RFP. While the club March 27, 2007 Proposals for Operation of Fremont High School Pool Page 17 of32

responded to requests for additional information, the budget figures particularly as they relate to payments to the City, have changed considerably.

B. Proposed Services • This non-profit currently operates a program for over 500 swimmers at the International Swim Center through agreement with the City of Santa Clara. The Santa Clara Swim Club mission statement indicates the Club's goal is to place swimmers on the US Olympic Swim Team. The structure of the Club is based on monthly payments/memberships for the competitive and adult masters departments and is governed by a volunteer Board of Directors. • The proposal identifies a limited mix of community swim programs consistent with the Club's structure of three departments: (a) learn-to­ swim for children and adults; (b) competitive swim for ages 6 through college; and, (c) masters/adult fitness). The proposal did not indicate what the minimum number of lap swim hours would be provided. Additionally, the proposal did not include a detailed proposed schedule with detailed content. There is no mention of intention to provide open swim times. Their proposals' schedule for public (non-high school) use appears to be 6:00 a.m. to 8:00 p.m. weekdays and 8:00 a.m. to 11:00 a.m. on Saturdays. The proposal did not include specific staffing plans beyond hiring a single site manager, which equates to a manager on site for a little more than half the operating hours proposed. • The lesson program has per session fees with continuing participants and their siblings being given priority for registration. Priorities for Sunnyvale residents are not mentioned. • The organization offers a scholarship program based on proof of income; however, the proposal does not provide information as to what other criteria, if any, is used to determine eligibility for the scholarship program. o Does not address plans for use and/or remodel of swim building and facility. o Does not address provision or replacement of equipment and furnishings. .. Did not provide a safety plan as is called for in the RFP. There are several references to certified staff and to training, but no specific safety information. • Start up strategy is to bring its current programs (run at the International Swim Center in Santa Clara) to Fremont High School Pool.

C. Financial and Longevity Aspects of Proposal • Initial proposal indicated that the City would receive an unspecified share of profits. Subsequent revisions offered a set fee of $48,000 plus March 27,2007 Proposals for Operation of Fremont High School Pool Page 18 of32

profit sharing payments increasing from 10% for the first year to 15% the second year and 20% for years three, four and five. The Club estimates the five yearly profit sharing amounts to be $1,500, $9,750, $22,000, $27,000 and $31,000. • The Santa Clara Swim Club did not provide a complete proposal. There were significant differences between iterations of the business plan that has led to some staff concerns about the reliability of the data. • Program runs with no debt and a "minor" profit with remainder of monies put into savings for future growth and development. The Club's program has had a consistent growth rate over the past 6 years. " Club has been in existence for 55 years and the "learn to swim" program has been in existence for almost 6 years. • Proposed a 5 year agreement (re-negotiate length of agreement after 3 years).

Pros and Cons for· Proposal Three, Santa Clara Swim Club Pros: • The Club offers a good quality instructional program using their own class structure that leads to their competitive program. • The Club has an excellent competitive program.

$ The Santa Clara Swim Club currently offers community swim programs in this area. • The proposal offers a set annual payment with the possibility of additional profit sharing revenue each year. • If the figures in the most recent iteration of their business plan are accurate, the Santa Clara Swim Club's proposal would insulate the City from any increases in costs for providing the public portion of the Fremont High School Pool operations while guaranteeing a rate of return to the City and including the possibility of additional revenue sharing payments for term of agreement, thus managing impact on Community Recreation Fund.

Cons: • The Santa Clara Swim Club proposed a limited program structure, and does not include such things as family swim or rentals. Adult fitness classes are only for those participating in the Masters or pre-masters program. No specifics were provided to show whether or not the proposed schedule would meet City's requirement for lap swimming. • This proposal provides the second greatest guaranteed financial return to the City, with potentially higher overall return in outer years assuming the estimates of net profits are accurate. However, in the most recent iteration staff believes the figures are overly ambitious given the limited scope of the SCSC proposal. The proposed profit sharing payments to the City creates a complex process involving defining what revenues and what expenses are to be considered and examining financial records to audit the results. March 27,2007 Proposals for Operation of Fremont High School Pool Page 19 of32

• Establishing a new operator will result in some level of disruption to the public now using the facility. e The service mix would likely meet the City's minimum requirement for lap swimming as defined in the RFP, but would not meet the overall objective of a broad array of swim activities. The service mix would likely be developed to meet the Santa Clara Swim Club's organizational goal of placing swimmers on the US Olympic Swim Team. • This proposal does not clearly address the cost of the swim building utilities. This issue could have a negative impact on the financial return to the City depending on the outcome of final negotiations for an agreement. • This proposal does not address plans for use and/ or remodel of swim building and facility or for provision or replacement of equipment and furnishings. • This proposal does not provide a safety plan. • The hours of operation proposed by the Santa Clara Swim Club are far less than the current operator, i.e. only open until 11 a.m. on Saturdays and no Sunday time. • It would be difficult or awkward at best for any other local or area youth swim club (such as the Sunnyvale Swim Club) to hold practices and meets in a facility operated by the Santa Clara Swim Club. • This group's initial proposal was missing significant required elements. Staff needed to request additional information on subsequent, follow up submittals as well. Staff believes the figures in the most recent submittal may be overly ambitious, particularly given the limited scope of service the Club proposes.

Alternative Four - City of Sunnyvale, Recreation Division City staff has developed a fourth alternative for Council consideration. This alternative would have the City's Recreation Division take over direct responsibility for operating the public use portion of the pool at Fremont High School rather than managing a license agreement with a contractor. To aid Council in comparing the three outside proposals against the alternative to have the City take over operation of the pool, the following information has been structured similarly to the three proposals:

A. Completeness of Alternative and Adherence to Specified Format: • Recreation Division staff has prepared a program plan and estimated budget (Please see Attachment F: Revenue and Expense Details for Operation by Recreation Division, City of Sunnyvale and Attachment G: Sample Schedule Assuming Operation by Recreation Division, City of Sunnyvale.) March 27,2007 Proposals for Operation of Fremont High School Pool Page 20 of32

B. Proposed Services: " The City is a municipal government. Through its Department of Parks and Recreation, the City currently operates aquatics programs at five sites and oversees the license agreement for the public swim program at the Fremont High School Pool. • The City proposes a mix of community swim programs involving adult lap swim (this could include senior swim times and rates), masters, water exercise, adult and youth lessons, recreation/ open swim, and rental to outside groups. Lanes could be rented by the hour for water polo groups, camps, swim teams and meets, etc.) The schedule would exceed the minimum required swim schedule established for lap swimmers. Proposal calls for a pool manager on site during all hours of operation. • The Recreation Division would plan for full use of the swim building and pool facility. Plan includes use of the pool from 6:00 a.m. until 10:00 p.m. weekdays and 7:00a.m. until 7:00p.m. on weekends. While staff is not suggesting any specific renovations or remodels at this time, staff has been working with the existing contractor to address issues with temperature of the swim building, security and other enhancements, and would intend to continue to develop solutions whether a licensee or the City is directly providing services at the pool. • Proposal would require new equipment and furnishings, which are accounted for in proposed start up costs. • Staff anticipates adapting the safety plans and procedures that are already in place at other City-run pools for use at the Fremont pool. • There would be a ramp-up period as job classifications and specifications would need to be developed for the positions required to operate a seven day a week, year-round public swim program. Following the creation of the appropriate positions, new employees would be recruited and programming put in place. It could take six to ten months to put the appropriate staffing in place.

C. Financial and Longevity Aspects of Alternative: • Instead of a payment to the City as put forward in the other proposals, the estimated annual budget for operation by the Recreation Division would require an increase in the annual transfer from the General Fund to the Community Recreation fund of approximately $155,384 for the first year. This amount would slowly decrease to approximately $128,000 at the 5111 year. Additionally, there will also be the loss of the annual license payment to the City (now budgeted at $51,000 annually) and one time start up costs of approximately $43,000. • While the cost estimates for staffing have been minimized by using SEIU regular part-time positions to fill the pool supervision function as compared to higher cost SEA regular full-time positions, the City's March 27, 2007 Proposals for Operation of Fremont High School Pool Page 21 of32

proposed staffing still is more costly than comparable staffing would be in the private and non-profit sectors. Other costs, such as IT rental rates, also run higher than the private and non-profit sectors. For example, this program would be charged its share of the overall costs to operate the Citywide network and telephone infrastructures as well as a share of the annual replacement costs for those same infrastructures. • The City has offered in the past, and currently offers, similar public swim programs at other City operated pools in the area and can be expected to maintain the expertise and ability to continue that level of service. • There would be no membership criteria; however, resident and non­ resident considerations would be used for setting fees and priority of use. • Funding would be through each two-year budget in the City's Resource Allocation Plan.

Pros and Cons for Alternative Four - City of Sunnyvale, Recreation Division Pros: • The City of Sunnyvale offers a good quality swimming program, using nationally recognized certifications (American Red Cross). • The City of Sunnyvale currently offers community swim programs at other swim pool locations in Sunnyvale. • This alternative would place the City in closer and more direct control with City staff determining how the program will be operated and the type of programming to be offered at the facility.

Cons: • The cost for this alternative is significantly greater than with any of the other proposals (annual estimated budget, initial startup costs, the elimination of an annual payment from the licensee and indirect impact to other City Divisions and Departments). • City employee costs, internal service charges and other overhead costs make it challenging to compete from a fiscal perspective with a private business or non-profit organization. e Revenue would not be guaranteed (as in two of the other proposals), thus providing greater financial risk exposure to the Community Recreation Fund. For example, California Sports Center guarantees a minimum payment of $48,000 regardless of how well, or poorly, the business does. In this case the California Sports Center accepts the cost and risk of doing business. • Establishing a new operator will result in some level of disruption to the public now using the facility. • A private operator can offer a different approach to marketing and the creation of new and different markets (such as private lessons). March 27, 2007 Proposals for Operation of Fremont High School Pool Page 22 of32

• Due to hiring, training and promotional time lines, it is unlikely the City could have the staff, procedures and policies in place to meet the time line to be fully operational by September 1, 2007.

Summary Comparison of Proposals

California Northwest Santa Clara City of Sports YMCA Swim Club Sunnyvale Center Completeness Complete Incomplete Incomplete N/A of Proposal Lap Swim Yes Yes Unclear Yes Requirement Met Hours of 5:30a.m.- 6:00a.m.- 6:00a.m.- 6:00a.m.- Operation 10:00 p.m. 8:30p.m. 8:00p.m. 10:00 p.m. weekdays; 7:00 weekdays; weekdays; weekdays; a.m. -7:00 7:30a.m.- 8:00a.m.- 7:00a.m.- p.m. weekends 1:00 p.m. 11:00 a.m. 6:00p.m. weekends Saturdays weekends

"Open Swim" Mid-June- Monday- None Summer: Mid-August Friday 11:30 - Monday- Monday- 1:30 and 6:00 Friday 12- Saturday 1 - 3 -8:00 1:30; Saturday p.m. 12:30-2:30 June- September Fridays 6:30 - 8:30 p.m. and Sundays 6- 7:30p.m. March 27,2007 Proposals for Operation of Fremont High School Pool Page23 of32

California Northwest Santa Clara City of Sports YMCA Swim Club Sunnyvale Center Mix of Broad array of Broad array of Limited array Broad array of Services programming programming of programming programming • adult lap swim • adult lap swim • adult lap • masters • masters swim • water exercise • youth swim • adult lap swim • masters Water exercise • senior swims team • Pre-masters • Adult lessons • adult lessons a water exercise • Masters • Youth lessons • youth lessons • rehabilitation • Learn to swim • • youth • family -adults • Open swim competitive swim/ events • Learn to swim • Rental use, swim • lessons -youth including camps, water readiness • springboard Competitive • open swim diving • polo, private for youth 6- rentals, etc. • youth water • synchronized college age polo swimming • adult water classes polo • fitness classes ~camps • youth water • safety training polo o rental • adult water usejoutside polo facility group Benefit or $246,000 No guaranteed Guaranteed Estimated Cost to the payment to payment to payment of negative net City to City over 5 City; 50% of $240,000 over impact of Provide years; net profit after 5 years. $155,384 in Public Swim $405,000 second year. Revised the first year, Programs at payment to No estimate of proposal or $702,047 City over 8 net profits estimates over 5 years Fremont High years. provided. possible (including 3% School Pool* additional annual $91,250 in inflation after profit sharing first year). over 5 years, Additional 1- although these time start-up numbers are costs of estimates and $43,000. speculative. *Th1s chart compares comparable serv1ces across the three proposals and the alternative of the City providing the services directly. It does not include the City's additional share of maintenance and utility costs for the pool and public shower /locker room facility under its agreement with the Fremont Union High School District, nor does it include the revenue from the Endowment Fund. March 27, 2007 Proposals for Operation of Fremont High School Pool Page24of32

FISCAL IMPACT The City's direct costs under its agreement with the Fremont Union High School District are the same regardless of whether the City or an outside contractor manages the public use of the Fremont Pool. Therefore, the information estimating expenditures and costs for the City's direct operations of the pool is limited to those new costs and revenues that would accrue were the City to assume direct responsibility for managing the public use of the pool. The impact of all four proposals, therefore, can be compared, because they all represent the same bundle of services. The financial details are listed for each year of the proposed options. Please refer to the following chart.

I : ·····.····· · . · •·· ·•·. Pro:2osa11•" Califorl1ia S:eorts Center ·.· · · .·. ·. :.·:.. •· ·· · :• • Agreement Formula Used to Calculate Net Revenue/(Cost) to City Year . Return. to City First Guaranteed Payment $48,000 ·-· ,_,~econd ---· f---· Guaranteed Payment $48,000 I Third Guaranteed Payment $48,000 ourth Guaranteed Payment $51,000 I Fifth----- Guaranteed Payment $51,000 Sixth Guaranteed Payment $51,000 r-: - ~venth Guaranteed Payment $54,000 Eighth Guaranteed Payment $54,000 --··- - --··-" - Total for Years 1- 5 $246,000 Total for Years 1 - 8 $405,000

...... Pro}!osal 2 - NORTHWEST YMCA .· •· : . . ... ·.·.. . First No payment $0 Second ==1 50% of Net Profit $-0- (Net loss projected) Third 50% of Net Profit No data provided Fourth 50% of Net Profit No data provided Fifth 50% of Net Profit No data provided -· " - -- .. Total for Years 1 - 5 Unknown March 27,2007 Proposals for Operation of Fremont High School Pool Page 25 of32

~-·- ...... - ••.-... ·-_ .. _·•--····• ·. Pre>posal 3 - Sarita Clara Swim Club ·-- •• --_ .. _-.-_ ... ·····-·-- . First Guaranteed Payment+ 10% $48,000 + est. $1,500 -$49,500-· of net 2rofit Second Guaranteed Payment + 15% $48,000 +est. $9,750 -$57,750 of net profit Third Guaranteed Payment + 20% $48,000 + est. $22,000 = $70,000 of net profit Fourth Guaranteed Payment+ 20% $48,000 +est. $27,000 =$75,000 of net profit Fifth Guaranteed Payment + 20% $48,000 +est. $31,000- $79,000 of net profit ----·· -- -- Total for Years 1- 5 (Low end of rang~ represents guaranteed payments. High end of range includes revenue sharing which are $240,000- $331,250 based on estimates and are speculative.) ___ .,. -.--.·_. -Alternative 4- SunnyVale Recreation Division* --- •--- _•---- ·_-._-_ ·-- _-_ ·--•-- .- .. _ r--:-·-·-··-· -· -- .... First Estimated Costs - Revenue ($155,384) + ($43,000 in start-up costs) Second Estimated Costs - Revenue ($145,214) Third Estimated Costs - Revenue ($138,448) Fourth -- Estimated Costs - Revenue ($134,400) Fifth Estimated Costs - Revenue ($128,601) Total for Years 1 - 5 ($745,047) *Includes 3% annual mflat10n factor for each year begmnmg m Year 2.

5-Year Comparison of Proposals

Any significant change in City policy that impacts the current priority, mix of programs and/ or fees charged to user groups will have an effect on the operator (contractor or City) to maintain revenues at the current or proposed level and could change the financial estimates in this report.. Additionally, it may be necessary to reject all three proposals and solicit new proposals based on any new or modified policy. For example, if lap swimming and other adult swim opportunities were no longer the top priorities for programming, the proposers would not be able to count on the same volume of revenue associated with lap and masters swimming and would instead need to develop new assumptions for participation under the new programming priorities. In addition, if the required service mix were to change, other service providers might be interested in submitting a proposal, while one or more of the current proposers might want to remove themselves from consideration.

It should also be remembered that the program currently requires a subsidy, even after allowing for the payments made by the Contractor to the City and March 27, 2007 Proposals for Operation of Fremont High School Pool Page 26 of32 after the contribution from the Endowment Fund. This is because of the City's share of pool utilities and maintenance, as well as the utility and maintenance costs of the public swim building. In accordance with the agreement between the Fremont Union High School District and the City, these costs will be ongoing, regardless of who manages the public use of the pool. However, with an outside contractor managing the pool, there is an opportunity to recover the utility and maintenance costs of the public swim building.

The next table, therefore, projects the net cost of the entire pool operation under the different proposals. (Please see Attachment H for detailed version of this table: Estimated Full Cost to City of Fremont High School Pool (Programmatic and Pool Maintenance.) Attachment I provides a side-by-side comparison of each of the proposals planned revenues and expenditures: Comparison of Proposals for Provision of Public Swim Programs and Yearly Operations of Fremont High School Pool.)

Estimated Full Cost to City of Fremont High School Pool _ jProgramming and Maintenance) . - Proposall Proposal2 Proposal3 Alternative 4

California Northwest Santa Clara Sunnyvale Sports Center YMCA Swim Club Recreation Division** 5 Yr. Total (Cost) I $246,000 Unknown $240,000 to ($754,473) Revenue for Provision $331,250* of Programming (including start-up costs) 5 Year Cost for City's ($594,012) ($594,012) ($594,012) ($594,012) Share of Maintenance (Under Agreement with District) 5 Year Revenue from $241,200 $241,200 $241,200 $241,200 Endowment Fund ·-·-· Full Cost to City of {$H)6,812) {$352,812)** {$ll2,812) ($1,097,859) Fremont High School to {$21,562) Pool (Programming and Maintenance). .. *This proposal mcludes both a guaranteed annual payment and an addttiOnal % profit sharing, so the total income could be higher or lower. **Includes 3% annual inflation factor. ***Actual costs could be lower to the degree that Northwest YMCA made revenue sharing payments to the City.

CONCLUSION The license agreement with California Sports Center (CSC) ends August 2007. At this time, City Council has the opportunity to consider whether CSC should continue as the provider of public swim programs at the Fremont High School March 27, 2007 Proposals for Operation of Fremont High School Pool Page 27 of32

Pool, whether the City should identify another operator to manage public use of the pool, or whether the City should take on this responsibility directly. This is not the first time the question of who should be managing the public's use of the Fremont High School Pool has been asked. Council members, at the time the pool was being developed, had to determine whether or not public operation of the Fremont High School Pool would be handled by the Recreation Division or an outside service provider. The answer at that time was to enter into an agreement with the California Sports Center.

The contents of this report are provided to assist Council in answering this question now. Three qualified organizations have submitted proposals to assume public operation of the Fremont High School Pool. Of these three, only one organization, California Sports Center, provided a complete and comprehensive response to the City's request for proposals. All three proposals reviewed by staff were from organizations with good experience and expertise in conducting successful swim programs; however, the proposals from Northwest YMCA and Santa Clara Swim Club were lacking critical information. Both the California Sports Center and the Northwest YMCA proposed a broad array of public swim opportunities, while the Santa Clara Swim Club proposed a more limited array of programming. The fourth alternative considers the Sunnyvale Recreation Division as the direct provider of this service. The Recreation Division is well-qualified to run aquatics programs and the plan assembled by staff provides for a broad mix of services.

Of the four proposals put forward in this report, Santa Clara Swim Club's proposal offers the highest potential rate of return to the City, followed by the California Sports Center's proposal. However, the revenue sharing projections contained in the Santa Clara Swim Teams' proposal are quite ambitious given the limited scope of service that is proposed. Northwest YMCA's proposal offers no guaranteed revenue stream to the City. The most expensive proposal of the four would be to have the City's Recreation Division operate the pool directly. If the City were to take on public operation of the pool, the change in service delivery method would result in additional costs that are not fully covered by an increase in revenue. This, then, will result in a corresponding increase in the General Fund subsidy to the Community Recreation Fund. While staff has worked diligently to develop a program proposal that is programmatically and fiscally reasonable, the fact is that City employee costs, internal service charges and other overhead costs make it challenging to compete from a fiscal perspective with a private business or non-profit organization.

Under the fourth alternative of having the Sunnyvale Recreation Division operate the pool directly, the City would have more direct control over programming and scheduling than with a contractor. This may or may not result in increased customer satisfaction. There will always be competing demands for service. If the service mix is altered to address the needs of one March 27, 2007 Proposals for Operation of Fremont High School Pool Page 28of32 constituency, there is likely to be another constituency that has been displaced. This challenge already exists for the City's current licensee. If the City were operating the pool directly, there would potentially be increased community and political pressure for guaranteed access, reduced fees and free use. If Council were to grant those requests there would be a negative impact on the Community Recreation Fund.

From purely a financial perspective, it is clear that working with an outside service provider is consistent with the City's Enterprise Fund philosophy and managing for competitiveness policy, both of which suggest that making the pool facility as self-sufficient as possible is a reasonable strategy. Contracting with a private operator for public use of the Fremont High School Pool provides a significant cost savings to the City while also providing a diverse scope of swim programs to the community with a high degree of quality customer satisfaction.

PUBLIC CONTACT Public contact was made through posting of the Parks and Recreation Commission agenda and Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, and the availability of the report in the City Clerk's office, Library, Parks and Recreation Administration office, Corporation Yard, Community Center and Senior Center.

Notice of Commission and City Council meetings regarding this report was also distributed to the "Friends of the Parks and Recreation" mailing list (a list of organizations and individuals who have expressed an interest in parks and recreation issues). A copy was also provided to the California Sports Center, the Northwest YMCA and the Santa Clara Swim Club. Signs have been posted at the Fremont High School Pool advising pool users of the Parks and Recreation Commission public hearing on March 14, 2007, and the City Council public hearing on March 27, 2007.

The Parks and Recreation Commission conducted a public hearing at their March 14, 2007, meeting. Five members of the public spoke in favor of staffs recommendation, including Eelco Bergman, the president of the Sunnyvale Swim Club. In addition, David Peterson, owner and Director of the California Sports Center, spoke, expressing his desire to continue California Sports Center's contract with the City to operate Fremont Pool. There were no speakers in opposition to staffs recommendation. March 27, 2007 Proposals for Operation of Fremont High School Pool Page 29 of32

ALTERNATIVES

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.

2. City Council directs staff to negotiate an agreement with Northwest YMCA for operation of the Fremont High School Swimming Pool commencing on September 1, 2007 for a period of five (5) years.

3. City Council directs staff to negotiate an agreement with Santa Clara Swim Club for operation of the Fremont High School Swimming Pool commencing on September 1, 2007 for a period of five (5) years.

4. City Council directs staff to negotiate a proposed agreement as specified by Council, with one of the proposers.

5. City Council rejects all three of the proposals for contractual operation of public swim programs at the Fremont High School Swim Pool and directs staff to prepare a budget supplement beginning in FY 2007/2008 to authorize an increase in the subsidy from the General Fund to the Community Recreation Fund of $207,810 for the first year. These resources would enable City staff to assume operation of the Fremont High School Swim Pool.

6. Other action as determined by Council. Council action to establish specific use policies or set fees will affect all of the financial estimates outlined in this report.

RECOMMENDATION Staff is recommending 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. This recommendation is based on the following information.

Of the three proposals received, the California Sports Center's stood out as a well written, complete document, offering a broad array of swim programs with no additional layer of membership fee structure or conflicting program interest with local swim groups. This proposal provides a strong guaranteed financial return to the City based on pre-established amounts which would in turn not require any financial audits to review costs, revenues and establish a profit margin. The proposal also offered the longest contract period. Based on these facts and excellent past experience with this contractor, staff concluded that March 27, 2007 Proposals for Operation of Fremont High School Pool Page 30of32 the proposal from the California Sports Center was the best overall proposal for the City. Therefore staff recommends an agreement with California Sports Center for an eight (8) year period with two possible additional extensions of five (5) years each be approved by Council. An additional benefit is that this specific provider offers the most likely scenario for providing seamless, uninterrupted service to the public beyond the expiration date of the current agreement because they are the current service provider.

As noted earlier in the Discussion Section of the report, the performance of the existing licensee, California Sports Center should be considered in evaluating their proposal. As with any operation, there have been periodic complaints from unsatisfied customers; however, over 95% of customers from a recent customer satisfaction survey indicated they were "Very Satisfied" with programs, services and the level of safety provided by California Sports Center. Despite the emphasis on adult programming and a market-based approach to the provision of services, staff and the California Sports Center have worked hard to create a balanced program. Over the past five years, CSC has provided a diverse mix of services ranging from adult lap swim, water exercise classes, lessons for all ages and ability levels, open/recreation swim times, water polo for youth and adult, and rentals to outside groups such as the Sunnyvale Swim Club. Participation in these activities has steadily increased over time.

One of the most significant factors influencing the decision to contract out or have the City directly provide public swim programs at the Fremont High School Pool is the costs associated in having City staff directly provide public swim programs. The Community Recreation Fund does not currently have the staff or budget resources to take on the significant amount of additional work required to self-operate the Fremont High School Pool. The proposal to have the Recreation Division take on the year-round provision of public swim programs at the pool reflects higher costs, particularly in staffing, than do the three outside proposals. The cost estimates for staffing have been minimized by using SEIU regular part-time positions to fill the pool supervision function as compared to higher cost SEA regular full-time positions. In addition to the direct program costs, hiring additional City employees will impact the Human Resources Department and the associated costs for recruitment and selection, including background checks, TB test and drug testing that are required for all Recreation positions.

If the City takes over public operation of the Fremont High School Pool there will be start-up costs of approximately $43,000 for the purchase of equipment and supplies. The City would assume the full cost and responsibility maintaining the public swim building, which is currently being paid for by the licensee. The estimated net cost increase to the City of approximately $754,473 over five years does not appear to be offset by a significant increase in benefits to the community. March 27, 2007 Proposals for Operation of Fremont High School Pool Page 31 of32

Other factors to consider include the time line required to create and implement promotional materials, develop City job classifications and specifications, complete the hiring process for new positions and train employees. These steps would need to be completed before the City would be in a position to take on operational control of public use of the pool at Fremont High School. Staff believes there could be significant challenges in accomplishing these tasks by September 1, 2007, given the number of recruitments that are anticipated over the next few months to fill vacancies left by potential retirements during this same period. It is likely that the City would not be able to begin offering public swim programs effective September 1, although every attempt would be made to do so.

While the Request for Proposals that was distributed last fall did not specify the type of payment formula that could be proposed, a fixed or set payment amount provides a guaranteed level of revenue for the City, and is the least complicated method to manage. In other words, there would be no need for detailed descriptions of what is considered revenue and expenses when calculating a "net profit," nor any need for the submittal or financial audit of the licensee's records. It also provides the City a stable base for budgeting purposes. The proposals to operate the Fremont High School Swim Pool varied significantly in the amount of money returned to the City, both on a yearly basis and over the life of the proposed agreements. The proposal from the YMCA offers revenue sharing payments, based on a percentage of the annual net profit, but provides no estimate of what those profits would be, after projecting net losses in the first two years. The Santa Clara Swim Club proposal initially offered a percentage of net revenues, while subsequent information offered the City a guaranteed amount of revenue each year and an additional payment based on a percentage of annual net profit. Staff believes these revenue sharing estimates to be overly ambitious, particularly given the limited scope of service the Club proposes. The California Sports Center proposes a guaranteed amount paid to the City each year.

The Parks & 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. March 27, 2007 Proposals for Operation of Fremont High School Pool Page 32 of32

Reviewed by:

David A. Lewis Director, Parks and Recreation

Prepared by: Nancy Bolgard Steward, Superintendent of Recreation; John Lawrence, Recreation Supervisor; and, Jenny L. Shain, Part-Time Manager ~~~ 6 Mary J. · ey Director, Finance

. ~-by ~~my Chan.':\J-=-.."'-Y~"-""'""'-'-­ U City Manager

Attachments A. Request for Proposal #F0610-34- issued October 30, 2006 B. Copy of Proposal from the California Sports Center C. Copy of Proposal from the Northwest YMCA D. Copy of Proposal from the Santa Clara Swim Club E. Letter of Support from Fremont Union High School District in Support of California Sports Center F. Revenue and Expense Details for Operation by Recreation Division, City of Sunnyvale G. Sample Schedule Assuming Operation by Recreation Division, City of Sunnyvale H. Estimated Full Cost to City of Fremont High School Pool (Programmatic and Pool Maintenance) I. Comparison of Proposals for Provision of Public Swim Programs and Yearly Operations of Fremont High School Pool. Summary of Business Plan Proposals. ATTACHMENT A

Request for Proposals #F0610-34 and Draft Agreement Issued October 30, 2006 ATTACHMENT A

CITY OF SUNNYVALE, CALIFORNIA

REQUEST FOR PROPOSALS NO. F0610-34 FOR OPERATION OF PUBLIC SWIMMING PROGRAMS AT FREMONT IDGH SCHOOL POOL

October 30, 2006

PROPOSALS DUE: WEDNESDAY, DECEMBER 6, 2006, AT 3:00PM

In the Office of the Purchasing Division City Hall Annex 650 West Olive Avenue POBox3707 Sunnyvale, CA 94088-3707

BUYER: DREAMA HOWARD (408) 730-7396

RECOMMENDED PRE-PROPOSAL WALKTHROUGH: Date and Time: Wednesday, November 15, 2006, at 2 p.m. Location: Fremont High School Pool 1279 Sunnyvale-Saratoga Road Sunnyvale, CA 94087 Request for Proposals No. F06!0-34 Page2

TABLE OF CONTENTS

Section Section Title Page

I. Invitation 3

II. City Objectives 3

III. Instructions to Proposers 3

IV. Background 6 v. License Elements 8

VI. Proposal Fonnat 11

Attaclnnent A Schedule Requirements 14

Attaclnnent B. Yearly Operations Summary 15

Attaclnnent C. City-District Agreement

Attaclnnent D. Draft Agreement Request for Proposals No. F0610-34 Page3

I. INVITATION

The City of Sunnyvale is seeking proposals from qualified individuals or organizations interested in entering into a long-term agreement to provide public swimming program, at the Fremont High School 50-meter swim pool facility at 1279 Sunnyvale-Saratoga Road, Sunnyvale, California, commencing on September 1, 2007. By agreement, the pool use has been divided into City, School or shared use times. During the shared use times, the City of Sunnyvale will have a designated number of lanes for use. At all times, the City will have a dedicated locker/shower/office building for exclusive use. The Fremont Union High School District will be responsible for its school-related swimming programs and for the maintenance of the swim pool (filtration, heating, vacuuming, etc.).

II. CITY OBJECTIVES

The City of Sunnyvale is well known for excellence in customer service and fiscal responsibility. The City seeks a swimming program operator who shares these essential values and who will incorporate them into the public swimming programs at the Fremont High School swim pool. The City's specific objectives in selecting a swimming program operator are noted below:

A. To enter into a long-term business relationship with an effective entity to operate the Fremont High School public swimming programs. (The City prefers to enter into a license agreement with a single provider.) B. To provide a safe, cheerful, wholesome, comfortable and service-friendly atmosphere in which patrons can enjoy swimming activities. C. To ensure provision of quality swimming programs and services in the following order of priority: 1. Adult lap swimming (see Attachment A- Schedule Requirements); 2. Other adult swimming programs (potentially a Masters or other competitive program, classes, water exercise, etc); 3. Other youth or community activities (lessons, competitive swimming, recreation or family swims, etc.). D. To establish an equitable, fair and just level of financial return to the City. E. To establish appropriate staffing levels, qualifications and responsibilities to ensure the provision of safe, quality programs. m. INSTRUCTIONS TO PROPOSERS

A. Submission of Proposals - Proposers shall submit an original plus five (5) copies of the proposal. Proposals should be submitted in a sealed envelope, clearly marked "Request for Proposals #F0610-34" prior to Wednesday, December 6, 2006, at 3 p.m. to: Purchasing Division City Hall Annex 650 West Olive Avenue PO Box 3707 Smmyvale CA 94088-3707

B. Pre-Proposal Walkthrough - A pre-proposal walkthrough of the Fremont High School swim pool facility located at 1279 Sunnyvale-Saratoga Road, Smmyvale, California, will be held on Wednesday, November 15, 2006, at 2 p.m. Attendance is not mandatory, but highly recommended. The purpose of Request for Proposals No. F0610-34 Page4

the walkthrough is to discuss City objectives, to allow proposers to examine the facility, to answer proposer questions, and/or to clarify the City's requirements, if necessary. Written addenda may be issued to all prospective proposers if deemed appropriate and necessary by the City. Those who wish to participate in the walkthrough should meet at the pool site promptly at 2 p.m.

The City shall presume that any proposer who submits a proposal is thoroughly familiar with all specifications and requirements of the Request for Proposals (RFP). The failure or omission to examine any form, instrument or document or to examine the existing facility and! or equipment and furnishings shall in no way relieve the proposer from any obligation in respect to the proposal.

C. Proposal Preparation - The proposal should clearly describe proposer's expertise and experience in the provision of public swinuning programs and services. The proposal must closely adhere to the requirements of this RFP and must be presented in the established format. Failure to comply with RFP requirements may result in rejection of a proposal.

D. Questions about Proposal Procedures or Specifications - Questions regarding the specifications or proposal procedures, etc., should be addressed to Dreama Howard, Buyer, at (408) 730-7396. All information provided in the Request for Proposals and its supporting documents is based on information from a variety of sources. No representation or warranty is made with respect thereto. Additional feasibility and marketing studies, etc., are the responsibility of the proposer.

E. Late Proposals- Any proposal received after the proposal deadline cannot be considered.

F. Rights Reserved by the City- The City reserves the right to: 1. Postpone the date and time announced for receipt of proposals by issuance of an Addendum at any time prior to the deadline for receipt of proposals; 2. Reject any proposal that is conditional in any way or that contains erasures or irregularities of any kind, items not called for, items not in conformity with applicable law, changes, additions, alternate proposals, or any other modifications of the proposal form which are not in accordance with the proposal documents; 3. Make such investigations as deemed necessary to determine the ability of proposer to perform the specified services; 4. Reject any proposal if the evidence submitted by or investigation of the proposer or City's past experience with proposer under another contract fails to satisfy the City that the proposer is properly qualified to successfully perform the obligations of the license; 5. Reject any or all proposals and to waive any informality in any proposal; 6. Determine the proposal(s) most advantageous to the City; 7. Consider proposals for a period of sixty (60) days following the deadline for receipt of proposals before deciding which proposal, if any, to accept. 8. Waive any informality in any proposal. 9. Modify the terms of the eventual agreement as the result of a City Council study issue regarding the services described in this RFP.

G. Modification or Withdrawal of Proposals

1. Before Date and Time for Receipt of Proposals - Proposals that contain mistakes discovered by a proposer before the date and time for receipt of proposals may be modified or withdrawn by Request for Proposals No. F0610-34 Page 5

written notice to the City's Purchasing Officer received prior to the deadline. Any modification shall be clearly identified as such and shall be made in writing, executed and submitted in the same form and marmer as the original proposal.

2. After Date and Time for Receipt of Proposals - A proposer alleging a mistake in a proposal may be permitted to withdraw its proposal if the proposer alleges that the mistake made proposal pricing materially different than intended, provided that the proposer gives written notice of the mistake and the marmer in which it occurred to the City's Purchasing Officer within five (5) calendar days following the deadline for receipt of proposals and the City's Purchasing Officer deems it to be in the best interest of the City.

H. Cost of Proposal Preparation - The City of Sunnyvale will not pay costs incurred by the proposer in proposal preparation. All such costs shall be borne by the proposer. All submitted materials shall become the property of the City of Sunnyvale.

I. Exceptions to the RFP - Any exceptions to RFP specifications, terms and conditions must be clearly stated in the proposal.

J. Proposal Evaluation and Award - Tlus is a Request for Proposals for qualified proposers with expertise and experience in the provision of public swimming programs. A review board composed of City staff will evaluate written proposals. Scoring by the review board will identify the proposer most likely to meet the City's needs. Maximum Evaluation Criteria . Points Possible Completeness of Proposal and Adherence To Specified Format 10 Proposed Services 30 • Proposer background information • Proposed swimming programs or service and proposed staffing • Proposal for use and/or remodel of swim building and facility • Proposal for replacement of equipment and furnishings • Safety Plan • Start up strategy (if appropriate) Financial and Longevity Aspects of Proposal 60 • Financial return to the City (amount and whether equitable throughout the license agreement term) • Yearly Operations Summary (clarity and completeness ofbusiness plan and whether plan is realistic) • Start up strategy (completeness of financial statements and whether proposer is capable of supporting future obligations) • How long proposer has been in business • Length of time for proposed agreement Maximum Points Possible 100

Proposers may be required to make an oral presentation before the City review board at a City site.

The selection process will conclude with City's identification of the proposer whose proposal is most Request for Proposals No. F06! 0-34 Page 6

likely to meet the City's needs. License negotiations will closely follow.

Should license negotiations fail to conclude with an agreement acceptable to both parties, the City will release, at its own discretion, the first considered proposer and begin negotiations with subsequent candidate(s).

All proposals shall be held in strict confidence by the City until the conclusion of negotiations and the execution of a license agreement with the successful proposer.

K. Non-Collusion Certification - By submitting a proposal, the proposer is certifying that he/she has not directly or indirectly been collusive with any other proposer in the preparation and submission of the proposal. If at any time it shall be found that the person, firm or corporation engaged in collusive activity, the person, finn or corporation shall be liable to the City for all loss or damage which the City may suffer as the result of the collusive activity, including but not limited to, the cost of advertising and awarding a replacement license for the service. This does not restrict the ability to collaborate with other individuals or groups to submit a joint proposal.

L. Proposal Oneninl!:: Granting of License - Proposals will be publicly opened on Wednesday, December 6, 2006, at or shortly after 3 p.m. in the Sunnyvale City Hall Annex, 650 West Olive, Sunnyvale, CA 94086. Only the names and addresses of proposers will be read aloud at that time. A license will be granted through a license agreement with the proposer whose proposal is determined to be the most advantageous for the City.

M. License Documents - The license documents will consist of this Request for Proposals; its attachment( s ), if any; the successful proposer's signed proposal; and a license agreement executed by the parties.

IV. BACKGROUND

A. Background - For a number of years, the Sunnyvale Department of Parks and Recreation has provided a diverse and extensive variety of swimming programs to the public. The City has operated swimming programs at Washington, Lakewood, Columbia, Peterson and Sunnyvale Middle School pools.

In response to public requests, the Sunnyvale City Council has considered several possible expansions of adult swim opportunities, including the possible construction of a public shower building at Sunnyvale Middle School pool and the year-round operation of the Lakewood pool.

In April 1999, the Fremont Union High School District advised the City of its intent to demolish two existing swim pools and to construct a new 30-meter swim pool at the Fremont High School campus. The District queried the City's interest in partnering in the construction, operation, use and maintenance of a pool larger than 30 meters, indicating that an estimated contribution from the City would be $1 million in capital expenditures and an unknown annual operating cost. Council directed staff to proceed with a feasibility study for a 50-meter swim pool partnership with the Fremont Union High School District. In July 2000, the City entered into a 25-year agreement with the school district for the construction and operation of a 50-meter swim pool at Fremont High School. Several public input meetings were held; and a basic pool design was completed. The pool opened to the public in June, 200 I, and has been operated under a license agreement with California Sports Center since that time. Request for Proposals No. F061 0-34 Page 7

B. Swim Pool Facility - The Fremont High School swim facility is located at Fremont High SchooL The 50-meter pool is located between the main gymnasium and the school locker rooms (see Attachment C, Exhibit A). The pool has eight (8) lanes of 50 meters and twenty-three (23) cross pool lanes of25 yards. Two (2) of the 25-yard lanes extend into a small shallow "L" section at one end (see Attachment C, Exhibit A) and are not usable for lap or competition swimming. The pool also has two (2) !-meter diving boards and one (1) 3-meter diving board. School district personnel shall maintain the pool facility.

C. Swim Building- There is a separate 2,800 square foot building (approximate size) exclusively for the use of the City and/or the City's licensed swimming program operator. Inside the building, located at the north end of the pool, are locker rooms, user group offices, a lifeguard control room, a training/teaching room and storage rooms (see Attachment C, Exhibit A). This building is referred to as "the Bathhouse" in Attachment C - City-District Agreement.

D. Hours of Use- The swim pool facility is available for use daily from 5 a.m. through 10 p.m. The City will have at least partial use of the pool during all these hours. The City-District agreement outlines the exact number of swim pool lanes for City and school district use throughout the year and establishes an annual review of the use schedule between the City and the school district (see Exhibit C of Attachment C- City-District Agreement).

E. Swim Pool Equipment - Lane lines, pool blankets, reels, starting blocks, diving boards, and H/C lift are available and will be replaced, when necessary, jointly by the school district and City (per Attachment C- City-District Agreement). With the permission of the City, other equipment may be used and/or stored at the facility by the licensee.

F. Issues To Be Considered by Proposer During Proposal Preparation

1. Parking -Parking will be an issue, regardless of who operates the new swim facility. City's agreement with the school district requires that thirty-four (34) reserved parking spaces be designated for swim pool use only and for the school district to provide exclusive use of these reserved spaced from 5 a.m. to 5 p.m. during school days only. During non-school days and off hours, parking will be on a "first come, first served" basis; and there are many activities on the campus, including after school student programs and functions, adult education classes, high school and City sports programs, etc.

2. Joint Use- The pool will be a joint use facility with some exclusive use and some joint use time periods. The City-District agreement allows fifteen ( 15) occurrences (with various time requirements for notification) during which the school district will have priority and/or exclusive use (see Attachment C - City-District Agreement, pages 8 and 9). This priority and/or exclusive use will be reiterated in any license agreement between the City and the successful proposer. Clear and concise communication and coordination between the licensee, school district and City will be essentiaL

3. Limited Use - The City and school district have agreed that the use of SCUBA equipment will not be permitted in the pooL The use of any watercraft (row boats, canoes, kayaks, etc.) is also restricted and may only be used in the pool by special written permission from the City. This Request for Proposals No. F06!0-34 Page 8

restriction will also be included in any license agreement between the City and the successful proposer. The City also retains the rights to utilize any of the City's swim pool use time not specifically identified for use by the licensee.

V. LICENSE ELEMENTS

The elements and terms of the license agreement will be negotiated between the City and the successful proposer. The City has entered into several license agreements in past years. Each agreement is unique and contains terms and conditions, consideration, and obligations which are specific to the licensed activity and designed to provide a fair distribution of revenue and responsibilities between the parties. Each license agreement is negotiated in confidence but becomes a public document once executed.

While each license is unique, all contain certain elements which are standard requirements of the City. These requirements are described in this section and should be considered by proposers when completing their estimates of business operating expenses for submission with the proposal.

A. Indemnification and Insurance - The following paragraphs are typical of those included in all City of Sunnyvale license agreements:

1. Indemnification

Licensee shall indemnify, defend, and hold harmless the City and Fremont Union High School District, their officers, employees, and agents from and against any and all claims, demands, orders, decrees or judgments for injury or death or damage to any person or property, loss, damage and liability occasioned by, growing out of or arising out of, or resulting from any act or omission on the part of licensee, its agents, or employees, or arising from the use of any improvements thereon or therein by any person or persons, or arising out of the operation or maintenance or dangerous or defective condition of the portions of the Fremont High School swim pool facility occupied or used by licensee, or any structure, facility or thing erected or placed thereon or therein

2. Insurance

At a minimum, Licensee shall obtain, at its own expense and from an admitted insurer authorized to operate in California, the insurance coverage detailed below and shall submit Certificate(s) of Insurance to the City of Sunnyvale Purchasing Division, 650 West Olive Avenue, PO Box 2707, Sunnyvale, CA 94088-3707; fax (408) 730-7710.

Licensee shall take out and maintain during the life of the contract Workers' Compensation and Employer's Liability Insurance for its employees. The amount of insurance shall not be less than $1,000,000 per accident for bodily injury or disease.

Licensee shall take out and maintain during the life of the contract such Commercial General Liability Insurance as shall protect Licensee, the City, the District, their officials, officers, directors, employees and agents from claims which may arise from services performed under the contract, whether such services are performed by Licensee, by the City, by the District, their officials, officers, directors, employees or agents or by anyone directly or indirectly employed by Request for Proposals No. F06!0-34 Page9

any of them. The amount of insurance shall not be less than the following: Single Limit Coverage Applying to Bodily and Personal Injury Liability and Property Damage: $1,000,000.

The liability insurance shall include, but shall not be limited to: • Protection against claims arising from bodily and personal injury and damage to property, resulting from Licensee's, City's or District's operations and use of owned or non-owned vehicles. • Coverage on an "occurrence" basis. • Broad form property damage liability. Deductible shall not exceed $5,000 without prior written approval of the City. • Notice of cancellation to the City's Purchasing Division at least thirty (30) days prior to the cancellation effective date.

The following endorsements shall be attached to the liability insurance policy, and copies shall be submitted with the Certificate(s) ofinsurance: • The policy must cover complete contractual liability. Exclusions of contractual liability as to bodily injuries, personal injuries and property damage must be eliminated. • The City and the District shall be named as additional named insureds with respect to the services being performed under the contract. • The coverage shall be primary insurance so that no other insurance effected by the City or the District will be called upon to contribute to a loss under this coverage.

Licensee shall be solely responsible for insuring (if desired and at its own cost and expense) any furnishings, fixtures, equipment, merchandise and supplies provided under the terms of the license agreement against loss or damage from fire, theft, or any other cause.

B. Utilities and Maintenance

1. The charges for water, gas, electricity, chemicals, garbage, sewer and repairs for operation of the swim pool and cleaning of the pool/deck will be paid by the District who will, in turn, charge the City for one-half of all such costs.

2. All charges for gas, electricity, garbage and maintenance of the interior of the City's swim building will be paid by the City or by the licensee.

3. Licensee shall be responsible for installing and removing pool blankets as prescribed in the joint use agreement and for paying any penalties for failure to discharge those duties (see Attachment C - City-District Agreement, page 7).

4. Licensee shall be responsible for:

a. Telephone costs.

b. Cost for replacement oflost keys or re-keying oflocks at City's discretion. Request for Proposals No. F06!0-34 Page 10

c. Furnishing and paying for supplemental janitorial services required during the day. Supplemental janitorial services furnished and paid by licensee shall include the cleaning of windows (inside and outside), toilets, showers, floor coverings and walls.

d. Keeping the portions of the swim building occupied by licensee in a clean and sanitary condition and reasonably free from rubbish at all times to the satisfaction of the City. (The City expressly reserves the right to inspect the facility at all times by and through its authorized representatives.)

e. Training its staff on maintenance procedures for all City-District equipment used by licensee.

C. Financial and Service Level Reporting

1. Licensee shall report to the City, the number of individuals participating in the various aquatic programs and the times those programs are conducted. Reports shall be due 15 days after each month.

D. Compliance with Laws; Inspections

1. Licensee shall be in full compliance with the Surmyvale Municipal Code and other ordinances of the City; all rules, regulations, and policies of the City; and all applicable laws of Santa Clara County, the State of California and the United States of America.

2. Within fifteen (15) days of occurrence, licensee shall provide to the City copies of any and all reports of inspections conducted by fire and/ or health regulatory agencies, including any recommended and/or required actions contained in the reports.

E. Performance Deposit

Prior to exercising any of the privileges and rights of the license, licensee shall deposit with the City a minimum of $5,000 to guarantee full and faithful performance of all license requirements. City may make withdrawals from this performance deposit to cover the cost of licensee's failure to fully and faithfully perform all requirements of the license agreement. Licensee shall deposit additional monies to replenish the performance deposit upon being billed by City for any withdrawals. Any balance remaining shall be returned to licensee upon the termination of the license.

F. Termination

1. City reserves the right to terminate any license granted as the result of this Request of Proposals under the following conditions:

a. Licensee is in default of any payment due the City or in the performance of any duty or obligation contained in the license agreement and fails to correct such a default within five (5) days of receipt of written notice from the City. Request for Proposals No. F06I0-34 Page 11

b. Licensee fails to keep in full force and effect the policies of insurance or performance deposit required by the license agreement and fails to correct such a default within five (5) days of receipt of written notice from the City.

2. Should either of the conditions stated above exist, the license agreement and all rights and privileges granted by the agreement shall immediately (without any demand or notice from the City, written or oral) cease and become void; and representatives of the City may immediately enter and take immediate and sole possession of the portions of the swim building occupied by licensee. Such an action shall not prejudice City's right to recover from licensee any payment due the City.

G. Payments; Considerations

1. Licensee shall pay all amounts due to the City in a timely fashion. I 2. The payment arrangement which will be considered by the City includes, but is not limited to, a fee paid to the City on a quarterly basis for rights to occupy and operate within the facility areas as licensed by the City.

VI. PROPOSAL FORMAT

Proposals shall include the specific information identified below. To expedite review by the City, information must be presented in the following sequence and format by number.

A. Proposer Background Information

1. Legal structure of entity submitting proposal; i.e. sole proprietor, partnership, corporation, etc. If a partnership or corporation, indicate the ownership, rights and roles of each member of the partnership or corporation. Preference will be given to a single proposal providing multiple programs or services. Single proposers, consisting of consortiums, joint ventures, or other partnership ventures, must clearly establish that all license negotiation responsibilities will rest solely with one individual, firm or legal entity. 2. All principals of entity submitting proposal and a contact person with contact address and phone number. 3. Business and personal references of all principals as well as for the proposing entity, if applicable. 4. Related experience of principals, including number of years, type of business, positions held, special training, certifications, level of authority, etc. 5. Proof of financial ability to fulfill probable license commitments, including ability to provide future equipment and furnishing replacements per licensee's schedule. 6. Has proposer been or is the subject of a bankruptcy or insolvency proceeding or subject to assignment for the benefit of creditors. 7. Any additional information that will assist the City in evaluating the proposal. Request for Proposals No. F0610-34 Page 12

B. Proposed Swim Program Services

Proposal shall include a detailed description of the proposed services, including, but not limited to:

I. Whether the proposer proposes to meet the required swim schedule (see Attachment F - Schedule Requirements); 2. Intended use of various areas of the facility; 3. Type( s) of services or programs offered; 4. Qualifications of proposer's staff and the number of employees proposer will provide for each program or service; 5. Safety plan covering the various types of swim programs and activities included in this proposal; 6. Number of hours, lanes occupied and participants planned for each program or service; 7. Proposed fee schedule for programs or services and pricing for any sales items; 8. Type and extent of advertising and/or promotions (including City publications); 9. Involvement of principal(s)/owner(s) in operations; I 0. Proposed license term, such as five years with an opportunity to extend in five year increments if both parties agree. (The City will consider any length of license term up to June 30, 2025.) All proposed terms shall begin on September I, 2007. II. Proposer's approach to scheduling. (The City encourages creativity.) 12. Other information, as necessary, to fully describe proposed services.

C. Swim Building Maintenance

The proposal shall specify who will perform routine maintenance of the interior portions of the City's swim building (see Attachment C, Exhibit A), including, but not limited to:

I. Cleaning, trash removal, stocking paper supplies, keeping all locks and fasteners in a state of repair, etc; 2. Repair and replacement of all windows within the portion of the building occupied by licensee that were not broken as the result of any act or neglect of licensee; and 3. Janitorial services and routine maintenance of the swim building and surrounding deck space (except those janitorial services identified as the responsibility of the licensee in Section V - License Elements, paragraph B (4)( c)).

D. Use and/or Remodel of Swim Building and Facility

The proposal shall indicate if the proposer intends to invest in the remodel or alteration of the swim building, facility, or additional equipment, including the proposed amount of licensee investment, and if the intent is to combine the proposer's investment with City capital funding (see Attachments A, B, & C). Proposal should indicate swim building use requirements (including exclusive use) and a plan for maintenance of the building interior (whether by proposer, by City or by a combination of both).

E. Equipment and Furnishings

The proposal shall include a list of the existing equipment and furnishings that will be required for the proposed programs or services. The proposal shall also include a replacement schedule for the existing equipment and furnishings due to normal wear and tear or for any other reason, including the source of Request for Proposals No. F06J 0-34 Page 13

equipment replacement capital. Proposal should include what, if any, additional equipment will be required and who will be responsible for purchasing, maintaining and replacing that equipment.

F. Yearly Operations Summary (Business Plan)

The proposal shall include a Yearly Operations Summary (completed Attachment B) for each year of the proposed tenn of the license. For example: If a five-year license is proposed, five Yearly Operations Summary Forms must be completed and submitted with the proposal. The proposed operations plan shall address and will be evaluated based upon: • The Proposed Return to the City • Budget Plan • Financial Stability

G. Start Up Strategy

The proposal shall include a description of the proposed start up strategy and all related costs, including, but not limited to:

1. Required furnishings and floor coverings; 2. Required expendable equipment, including kick boards, pace clocks, pull buoys, etc.; 3. Supplies and materials required in the operation of services and programs; 4. Staffing level, including a resume of the person who will manage the operation, all required positions and number of staff in each position, qualifications, functions, and pay rates; 5. Proposed staff training. 6. Proposed marketing plan (including proposed City publications); 7. Proposed written revenue handling procedures and policies; 8. Proposed written safety procedures and policies; and 9. Other information, as necessary, to fully describe start up strategy.

H. Signature

The proposal must be signed by either the proposer or an officer, partner or other representative duly authorized to sign such proposals on behalf of the proposer. If not signed by the proposer, a notarized resolution of the governing board of the entity establishing such authority to the signer must be attached. Request for Proposals No. F06!0-34 Page !4

Attachment A

Schedule Requirements

The City of Sunnyvale is interested in ensuring the provision of unstructured adult lap swimming opportunities. To accomplish this goal, the contract operator of public swim times at the Fremont High School 50-meter swimming pool shall include, as a minimum requirement, the following amount of lap swimming lanes and times.

Minimum Adult Lap Swim Times Minimum Number of25-yard lanes

Monday- Friday 6:00am- 8:00am 4lanes 11 :30am- I :30pm 4 lanes 6:00pm- 8:00pm 6lanes

Saturday and Sunday 8:00am- II :OOam 6lanes

These times and lane numbers must be maintained for unstructured adult lap swimmers and may not be used for other programs or activities such as Masters Swimming, swim instruction, coaching, etc. Additional lanes may be designated for lap swimming at the program provider's discretion, based upon observed need.

The public swim program schedule will be reviewed on a regular basis and may, upon mutual agreement between City and contract operator, be revised. Request for Proposals No. F061 0-34 Page 15

Attachment B Yearly Operations Business Plan Summary For Operation of Public Swimming Programs at Fremont High School Public

Business Plan for Year of a ___-year agreement Gross Revenues:

Activity Fees $

Rentals $

Miscellaneous Sales/Services $

$ Year Total Gross Revenues Gross Operating Expenses:

Labor/Management $

Office Supplies $

Expendable Equipment $

General Supplies $

Maintenance/Repairs $

Insurances and Misc. Expenses (taxes, interest, etc.) $

Marketing/Publicity $

Return to City (rent, %, etc.) $

Year Total Gross Operating Expenses $

Year Net Operator Profit or (Loss) $ Debt Retirement:

Year Total Debt Retirement $

ATTACHMENT A

DRAFT

AGREEMENT BETWEEN THE CITY OF SUNNYVALE AND FOR THE MANAGEMENT, OPERATION AND SUPERVISION OF PUBLIC SWIMMING PROGRAMS AT FREMONT HIGH SCHOOL POOL

This Agreement dated ______, 2007, is by and between the City of Sunnyvale, a municipal corporation of the State of California (hereinafter "City"), and ("CONTRACTOR"), to manage, operate and supervise the public swimming programs at Fremont High School Pool, for a term beginning on 12:01 a.m. on September 31, 2007, and ending at 12:01 a.m. on unless sooner terminated pursuant to the provisions contained in this Agreement. Nothing in this Agreement shall become primary to or supercede any part of the City of Sunnyvale-Fremont Union High School District Agreement dated July 18, 2000 (as it currently exists or as hereafter amended), regarding the joint operation of the 50-meter swim pool and adjacent pool building at Fremont High School.

SECTION 1. DEFINITIONS. As used in this Agreement, the words and phrases noted, unless provided otherwise, shall have the following meanings: A. "City Council" means the City Council of the City of Sunnyvale. B. "City-District Agreement" means an Agreement, dated July 18, 2000, Between the City of Sunnyvale and the Fremont Union High School District for the Development and Operation of a 50-Meter Swimming Pool and Related Facilities at Fremont High School.

C. "Department" means the Department of Parks and Recreation of the City of Sunnyvale. D. "Director" means the Director of the Department of Parks and Recreation of the City of Sunnyvale. E. "District" or "School District" means the Fremont Union High School District

1 F. "CONTRACTOR's Employee" means any person employed by and paid solely by Contractor, for any of the following purposes: (1) to supervise or give lessons and instructions in swimming; or (2) to assist in the day-to-day operation of the swimming programs, pool or related activities, including collection of monies. G. "Pool" means the Fremont High School Swim Pool, a 50-meter by 25- yard pool, located at 1279 Sunnyvale-Saratoga Road, California. H. "Pool Building" means a single-story structure, located at the north end of Fremont High School Pool (approximately 2,800 sq. ft. in size containing locker rooms, lavatories, offices, lifeguard control room, teaching/training room, and storage rooms) located at 1279 Sunnyvale-Saratoga Road, California.

I. "Swimmers" means members of the public using the pool facilities. J. "Shall" is mandatory.

SECTION 2. EXCLUSIVE USE. City grants to Contractor the exclusive use of the Pool Building and the City's portion of the Pool to be occupied only for publicly offered aquatic related programs and as a related on-site office, and for no other purpose. Contractor shall occupy and operate the Pool Building and City's portion of Pool use under this Agreement, consistent with the City-District Agreement. Contractor is granted the exclusive right to provide all public swimming programs at the Fremont High School Pool other than those provided by City or its employees in connection with programs authorized and mutually agreed to by the Director and Contractor. The hours of operation will be daily between 5:00 a.m. and 10:00 p.m. with specific pool use, including shared or joint use as outlined in the City-District Agreement, unless agreed upon by the School District, City and Contractor, and except during times of closure due to maintenance and repairs or as modified by written agreement of the parties. SECTION 3. PRIVILEGES AND DUTIES OF CONTRACTOR. Contractor shall perform each duty and obligation imposed herein in full compliance with the Sunnyvale Municipal Code and other ordinances of City, and all applicable laws of the County of Santa Clara, State of California and the United States of America and the terms of the City-District Agreement. Specifically, Contractor shall: A. Obtain and pay for any business license or permit required by the

2 Sunnyvale Municipal Code (as it currently exists or as hereafter amended) or any other City ordinance, or law of the County of Santa Clara or State of Califomia or the United States of America. B. Pay any and all taxes including, but not limited to, personal property taxes, and sales and use taxes assessed against Contractor, or any possessory interest in the Pool and Pool Building, including inventories used in performing the duties and obligations under this Agreement. SECTION 4. SCOPE OF PROGRAMMING. Contractor shall: A. Provide, to the degree that it can be accomplished within the context of market-based programming, a broad array of swim opportunities (such as lap swim, masters programs, swim opportunities for children in grades K-12, swim lessons for all ages, and recreational/family swim opportunities, diving, water exercise classes, safety and training classes and other aquatic related activities) as opposed to a narrow scope of programs and all other services customarily provided by a sWim professional, either by personally or by qualified contractor's employees; B. Provide, at an acceptable level to the public, swimming lessons and instructions and all related services as required by the Director; C. If possible under market conditions, schedule swim meets at the Pool and Pool Building for special interest groups so as to assure the best overall, well­ rounded swim program for the community; D. Operate, manage and supervise the Pool and Pool Building. SECTION 5. SWIM PROGRAMS. With regard to operating, managing and supervising the swim programs, Contractor shall: A. Organize, establish and conduct fee-based swimming programs which include the specifically required adult lap swimming schedule set forth in Attachment A. Contractor covenants that the swim programs shall be supervised and/or conducted by professional personnel, all of whom will have current and legally approved training, including, but not limited to, certification m cardiopulmonary resuscitation, use of AED equipment and certification in lifeguarding (and/ or water safety instruction) for the purposes of supervising public swimming activities.

3 B. Perform services as may be deemed necessary by Contractor including, but not be limited to, the following: (1) Selecting, training, supervising and assuming responsibility for conduct, appearance and performance of contractor's employees; (2) Providing such equipment and teaching aids as may be necessary; C. Employing, in connection with the foregoing operations at Contractor's sole cost and responsibility, such contractor's employees as deemed necessary; provided, however, that: (1) Within ten (10) days following receipt of written notice from City that a particular of contractor is not satisfactory to City for good cause, Contractor shall dismiss that employee forthwith; and (2) When performing duties for the Contractor, no employee of Contractor shall be deemed to be an employee, agent or representative of City at any time or for any purpose whatsoever; and (3) Contractor shall require all its employees to be neatly dressed and courteous at all times, and to refrain from boisterous or objectionable conduct or littering around and about the Pool, Pool Building and Fremont High School premises. (4) Contractor shall reqmre and be responsible for any and all background checks and fingerprinting necessary to comply with applicable state laws. D. For the purpose of tracking service levels, provide the City accurate number of monthly participants in various swim programs offered by Contractor and its employees at the Pool and Pool Building by the 15th day of the following month. SECTION 6. FACILITY SUPERVISION. With regard to facility supervision, the Contractor shall be responsible for operating, managing and supervising the Pool and Pool Building, including but not limited to: A. Enforcing all rules and regulations. B. Regulating the swimming and conduct of the swimmers. C. Notifying the Director or their designee of any incident, accident or injury involving removal from the facility of a participant or contractor employee by

4 ambulance, police or fire personnel. D. Supervising the Pool and Pool Building, preserving order, maintaining cleanliness and providing for security of the Pool and Pool Building, including keeping trespassers off of the Pool and Pool Building and preventing injury to the Pool and Pool Building by swimmers and others. During shared-use times with the District, Contractor is not responsible for those people accessing the facility through District's programs or entryway(s) or for those portions of the pool School District uses. E. Keeping the Pool and Pool Building open for the specified, minimum number of adult lap swim hours set by agreement between Contractor and the Director, as set forth in Attachment A. F. Keeping locker rooms and lavatories open at all times that the Pool is open by Contractor for public swimming or related business and keeping locker rooms closed and locked at all other times. G. During operating hours, inspecting and maintaining locker rooms, showers and lavatories to assure clean and operational conditions that meet health codes and is acceptable for providing public activities. H. Maintaining Pool Building in a safe, clean, sanitary and acceptable condition for dealing with the public, reasonably free from trash and rubbish. I. Repairing and replacing any equipment as required in order to maintain Pool Building in good condition, with exception of items noted in Section 12. With the permission of the City, other aquatic-related equipment may be used and/or stored at the facility by the Contractor. J. Responding to concerns raised by the public in a timely, professional and helpful manner which will involve having a staff person at the Pool, or readily available to answer questions and provide information at all times the Pool is open for public use. K. Remove and replace swim pool blankets in accordance with the City­ District Agreement and payment of any penalties due to failure to replace the swim pool blankets. SECTION 7. SCHEDULE AND FEES. With regard to schedules and fees, Contractor shall be responsible for:

5 A. Providing a six-month schedule of Pool use (December through May and June through November) by November 1 and May 1 for each following six­ month period, for each year this Agreement is in place. The schedule is subject to approval by the Director or their designee. B. Maintain the minimum number of hours of adult lap swimming for which the Pool and Pool Building is to be kept open each day and each week as per Attachment A (Schedule Requirements) unless otherwise mutually agreed to, in writing, between both parties. C. Establishing all fees on an annual basis (January of each year), including a potential range or percentage increase, through a market­ based approach and consistent with the City's enterprise philosophy, including resident/non-resident fee differentials and other subsidies where appropriate. The fees are subject to approval by the City. D. Posting and notifying the public of fees and changes to fees. E. Collecting and depositing all fees, charges and receipts for individual participation, for individual and group swim instruction, and for all swim reservations of the Pool and Pool Building. F. Honoring the rights of participants to waiver of fees, upon presentation by participants of an authorized City of Sunnyvale fee waiver form. Contractor shall keep accurate records of all fee waivers and shall provide City with such records not later than ten (10) days after the end of each calendar quarter for reimbursement and not later than June 25th for the last quarter (fee waivers are not valid beyond June 15 of each fiscal year). SECTION 8. ADDITIONAL DUTIES OF CONTRACTOR. Contractor shall, in addition to the foregoing duties: A. At Contractor's discretion, maintain, sell and rent a stock of merchandise, supplies and equipment sufficient to meet customer demand and suitable for use at the Pool and Pool Building including, for example, clothing, eye goggles, towels, books and other swim equipment and supplies, provided that the makes or lines of swim merchandise, supplies and equipment so handled shall be representative, in quality, price and type, of those makes and lines of swim merchandise generally available to the public in this area.

6 B. At Contractor's discretion, maintain and operate vending machines for the sales of food and beverages provided that within ten (10) days following receipt of written notice from City that a particular product or machine is not satisfactory to City for whatever reason, Contractor shall remove or have vendor remove that product or machine forthwith. C. Pay all charges for water, gas and electric service to the Pool Building, which, per the City-District Agreement, will be metered or measured separately. D. Furnish and pay all charges for telephone, cable, internet or any other audio or visual services which relate to the Contractor's use of the Pool and Pool Building operations. E. Furnish and pay all costs in connection with maintaining the interior of the Pool Building together with routine maintenance thereof, the janitorial services to include, but not limited to, cleaning of windows (inside and outside), removal of trash, and the routine maintenance of interior furnishings, equipment and fixtures. The Contractor shall keep the appearance of the Pool and Pool Building locker areas in a safe, clean and sanitary condition and reasonably free from rubbish during operating hours, to the satisfaction of City, which expressly retains and reserves the right to inspect the Pool and Pool Building at a;ny reasonable time for this purpose. Contractor shall provide and maintain high-quality equipment and other interior furnishings or devices required to operate the Pool and Pool Building. F. Furnish and pay all charges for office supplies. G. Contractor, at Contractor's own expense, may with the written approval of City change the locks on the rooms covered by this Agreement. If Contractor chooses to change the locks, two (2) master keys must be submitted to City immediately upon making such change. If the City is or becomes responsible for ongoing maintenance of the building interior, Contractor will make available to the City the necessary number of keys for maintenance personnel. The City, at its option, may make copies of the master keys available to the School District for maintenance and emergency purposes. H. Communicate through the City any problems or concerns regarding issues covered by City-District Agreement. SECTION 9. PROHIBITED ACTIVITIES. Contractor shall not do any of the

7 following without having first obtained the written consent of City: A. Install or permit installation or use of any pinball machine, video game or similar equipment. B. Except on approved bulletin boards, attach, hang or otherwise affix any sign or advertising matter on the exterior or interior of the Pool or Pool Building. C. Allow any newspaper rack, vending machine or other sales device to be placed and maintained outside the Pool or Pool Building whether attached or free­ standing, or anywhere in the Pool and Pool Building, except as authorized herein. D. Permit third parties to distribute or sell goods, wares or merchandise either within the interior or exterior of the Pool or Pool Building, or anywhere on the Fremont High School property. E. Assign or transfer this Agreement or any of the rights or privileges herein granted, or any part thereof. This Agreement cannot be assigned involuntarily or by operation or process of law. F. Make any alterations, changes or additions to the Pool or Pool Building, or to any fixtures or equipment owned by City or School District without first having obtained written consent of City or School District, as appropriate, and provided that any alterations, changes or additions consented to shall be made at the sole cost of Contractor and shall become the property of City and/or School District upon termination of this Agreement. G. Let, sublet or assign the Pool or Pool Building, or any portion thereof. H. Commit, permit or allow any nuisance or waste in, or injury to the Pool or Pool Building or any portion of either, or to permit the use of the Pool or Pool Building for any illegal or immoral purpose. I. Have any financial or other interest in the control, operation or promotion of any other swim program or establishment located within three (3) miles from the Fremont High School Pool, it being the intent of the City of Sunnyvale that the management and operation of the Pool and Pool Building shall be the sole swimming program offered by the Contractor within the immediate area, unless otherwise agreed upon by the parties. J. Owners or Directors of Contractor or site manager/supervisor, without permission from the City, become an officer or member of any swim club or

8 organization of swimmers formed or to be formed at the Pool or Pool Building or in any organization in which participation would conflict or create the perception .of conflicting, with the City's desire to provide reasonable public access to a broad array of aquatic programs held at the Pool and Pool Building, particularly in situations involving the granting of swimming privileges. K. Bind or attempt to bind City to any contracts or other obligations of any nature. L. Use or instruct in the use of any SCUBA equipment in the Pool. M. Offer or provide any discount, special privileges or service to a City employee that is not also available to the general public. SECTION 10. DEPOSIT, PAYMENTS TO CITY, RECORDS AND ACCOUNTS. A. Contractor, in consideration of the privileges and rights allowed by this Agreement, shall pay to the City a fee of$ per ______B. Payments are to be in quarterly installments, each to be one-quarter of the annual amount to be paid to the City and are due (i.e., must be received) no later than the last working day of March, June, September and December of each year. C. Contractor shall maintain on a current basis complete records from which the attendance and scheduled use (from all sources) can be readily ascertained. Contractor shall furnish any and all information and reports on the aforementioned information which may be required by City, shall permit access to books, records and accounts by City or its representatives upon demand for the purposes of investigation to ascertain compliance with all applicable rules, regulations, and orders and for the purpose of evaluating and monitoring Contractor's performance and compliance with the provisions of this Agreement.

SECTION 11. COMPENSATION OF CONTRACTOR. Contractor, as compensation for the services performed under the terms of this Agreement, shall be entitled by City to keep and retain all fees (including non-resident differential) and revenues collected from all operations of the Pool and Pool Building Jess the amounts paid to City pursuant to SECTION 10. SECTION 12. DUTIES OF CITY. City shall, in conjunction with Contractor's

9 service, do or have done by the City and/or the School District pursuant to the City-District Agreement, the following: A. Publicize the Contractor's swim program in the Department's "Activities Guide". B. Reimburse the Contractor for waivers of fees honored pursuant to SECTION 7.F. C. Work with the Contractor in the promotion of swim meets and swim programs as related to Department-sponsored or special agreement swim programs. D. Pay all charges for utilities furnished other than those to be paid for by Contractor. E. Maintain the Pool and appurtenant structures, including but not limited to diving boards, stands, ladders, bleachers, posts and poles, lighting and other plumbing or electrical systems, fences, grounds and adjacent improved off­ street parking areas. F. Be responsible for maintaining the structural elements and systems of the Pool and Pool Building, including the roof, in the condition existing at the time the Contractor takes possession of the premises, excepting normal wear and tear, consistent with the terms of the City-District Agreement. "Structural elements and systems" includes skYlights, foundation, footings, floor slab, flooring, structural walls, parking areas, and plumbing, electrical and heating systems. If the state of disrepair (except normal wear and tear) is due to the action of the Contractor, its agents or clients, necessary repairs or replacements shall be charged to Contractor as additional rent. G. Repair and replace all broken windows within the Pool Building other than any broken as a result of any act of negligence by Contractor, it's agents or clients. H. Purchase and replace water polo nets, lane lines, backstroke flags, pool blankets, reels, starting blocks, diving boards, and handicapped lift when necessary, consistent with the City-District Agreement) other than any damage as a result of any act of negligence by Contractor, its agents or clients in which case necessary repairs or replacements shall be charged to Contractor as additional rent.

10 I. Reserve, clearly mark and monitor thirty-four (34) parking spaces for Pool during the normal school year (typically late August through mid-June). As detailed in the City /District Agreement. SECTION 13. INDEMNIFICATION. Contractor shall indemnify and hold harmless the City of Sunnyvale and the School District, their officers, employees and agents, from and against any and all claims, demands, orders, decrees or judgments for injury or death or damage to person or property, loss, damage and liability (including all costs and attorneys' fees incurred in defending any claim, demand or cause of action), occasioned by, growing out of, or arising or resulting from any act or omission on the part of Contractor, or its agents or employees, arising or resulting from the performance of any services required herein to be performed by Contractor or arising from the use of the Pool or Pool Building by Contractor, or its agents, clients or employees, or arising from the use of any buildings or improvements thereon or therein by any person or persons, or arising out of the operation or maintenance of dangerous or defective condition of the Pool or Pool Building, or any other structure, facility or thing erected or placed in the Pool or Pool Building and under the control or supervision of the Contractor. SECTION 14. INSURANCE. Contractor shall and will, during the period commencing on the date on which this Agreement is issued and continuing without interruption until this Agreement is canceled, revoked or otherwise terminated, and at its own cost and expense, provide and maintain in such form and with a company or companies satisfactory to City and District, a policy or policies of each of the following types of insurance to wit: A. Single-limit coverage applying to bodily and personal injury liability, including liability for death, and property damage, or a combination thereof, in an amount not less than One Million Dollars ($1,000,000) per "occurrence" basis with a minimum Two Million Dollars ($2,000,000) aggregate; provided, however, as follows: (1) City and School District shall be separately named as an additional insured in all of said insurance policies; (2) A contractual liability endorsement shall be included in each insurance policy, extending coverage to include the liability assumed under

11 Paragraph A; and (3) Professional liability or errors and omissions coverage. B. Workers Compensation Insurance and Employers Liability Insurance for all employees of Contractor in statutory limits. D. Any policy of insurance required of Contractor shall also contain an endorsement providing that thirty (30) days' notice must be given in writing to City and to District of any pending change in the liability or of any cancellation or modification of the policy. E. In the event of a serious accident or incident involving a response by emergency personnel (police, fire, ambulance) or an event deemed to potentially involve a lawsuit against the Contractor, District or City, the Contractor shall contract the City's contract liaison or the Director immediately following the conclusion of any emergency actions or procedures. F. Contractor shall fill out and forward to the City and to District a comprehensive accident report on any injury deemed to be serious or potentially involving a law suit that takes place in and around the Pool or Pool Building within two working days (a working day being typically Monday through Friday but not including those holidays during which the Pool and Pool Building is closed). G. Contractor shall have the sole responsibility of insuring (if it so desires and at its own cost and expense) any furnishings, fixtures, equipment, merchandise and supplies required to be provided under the terms of this Agreement against loss or damage from fire, theft or any other cause. SECTION 15. BOND REQUIREMENTS. Contractor, before exercising any of the privileges and rights set forth in this Agreement, and at its own costs and expense, shall deposit and maintain with City at all times a minimum of Five Thousand Dollars ($5,000). in cash or bond, to guarantee full and faithful performance of all the duties, obligations, covenants and agreements contained in this Agreement to be performed by Contractor or any employee of Contractor, including, but not limited to, payment of monies required to be paid to City at the times and in the manner specified in this Agreement. City may make withdrawals from this guarantee fund to cover the cost of failure to fully and faithfully perform as stated above, or to reimburse City monies required to be paid to City which are

12 not so paid. Contractor shall deposit additional monies to replenish the guarantee fund upon being billed by City for withdrawals from the fund. Any balance remaining shall be returned to Contractor upon the termination of this Agreement, provided that Contractor or any employee of Contractor is not in default in the payment of any monies required to be paid to City, or in the performance of any duty, obligation, covenant or agreement contained herein. SECTION 16. TERMINATION. A. City reserves the right to terminate this Agreement: (1) If at any time Contractor is in default in the payment of any fees or any other monies required to be paid to City, or in the performance of any duty, obligation, covenant or agreement contained herein (time expressly declared to be of the essence), upon five (15) days written notice to Contractor and Contractor fails to correct such default within the five (15) day period; provided, however, that: (a) Contractor shall not be entitled to and expressly waives any other form of demand or notice (written or oral); (b) City shall have the full right, at its election, to enter Pool and Pool Building and take immediate and sole possession thereof; (c) City shall have the right to bring suit for and collect all monies required to be paid to City and which shall have accrued up to the time of entry described above; (d) Upon such termination, this Agreement and all rights and privileges herein agreed to shall become void to all intents and purposes whatsoever; or (2) If Contractor fails to keep in full force and effect at any time the policies of insurance or faithful performance deposit required above upon five (15) days written notice to Contractor and Contractor fails to correct such default within the five (15) day period. B. Either party may terminate this Agreement for any reason upon 120 calendar days written notice to the other. SECTION 17. DEFAULT AND BREACH BY CONTRACTOR: If the City so chooses, this Agreement and all rights and privileges herein shall immediately (and

13 without any demand or notice written or oral) cease, determine, come to an end, and become void, and the City immediately may enter Pool and Pool Building and take immediate and sole possession thereof, without prejudice to the right of City to recover from Agreement all unpaid monies required to be paid to City and which shall have accrued up to the time of the entry described above, if: A. Contractor at any time during the term of this Agreement becomes insolvent, or if proceedings in bankruptcy shall be instituted by or against Contractor, or if Contractor shall be adjudged bankrupt or insolvent by any pool owner, or if a receiver or trustee in bankruptcy or a receiver of any property of Contractor shall be appointed in any suit or proceeding brought by or against Contractor, or if Contractor shall make an assignment for the benefit of creditors, or if any action is taken against or suffered by Contractor under any insolvency or bankruptcy act. B. If during the term of this Agreement either dies, or by reason of incapacity, or otherwise, is unable to personally perform the duties, obligations, covenants or agreements contained herein for a period of ninety (90) consecutive days. SECTION 18. SURRENDER OF PREMISES AND REMOVAL OF PROPERTY. A. Upon expiration of the term of this Agreement, or upon the sooner termination of such term from whatever cause, Contractor: (1) May remove any and all furnishings, fixtures, equipment, merchandise and supplies installed or purchased by Contractor; provided, however, that: (a) Any item of personal property described above not so removed shall be deemed abandoned by Contractor to City and absolute title thereto shall vest in City immediately; (b) Contractor is not then in default in the payment of any fees, portion of gross revenue or any other required to be paid to City, or in the performance of any duty, obligation, covenant or agreement contained herein; (c) Contractor shall leave the Pool and Pool Building appurtenances in good order, condition and state of repair, reasonable wear and tear and damage by the elements excepted, together with any alterations, changes,

14 additions or improvements thereto; and (d) Contractor shall be responsible for any damage to the Pool or Pool Building and occasioned by the removal of any furnishings, fixtures or equipment; and for such damage, if any, City shall have lien on the items of personal property until such damages be paid. (2) Shall peaceably and quietly leave, surrender and yield up to City and District the Pool and Pool Building. B. In the event of termination of this Agreement, because of the default of Contractor upon any of the grounds set forth above or in the event of the automatic termination of this Agreement, City reserves the right to remove any personal property belonging to Contractor from the Pool and Pool Building and to store such personal property at the sole cost and expense of Contractor, and City shall have a lien on such personal property for and until all and any storage charges are paid. SECTION 19. DISCRIMINATION PROHIBITED. Neither Contractor nor any officer, agent, or employee thereof shall discriminate in the employment of persons to perform any service or activity at the swim facility, or discriminate against any person in the use or access to the Pool or Pool Building on account of race, color, national origin, ancestry, religion, sex, sexual orientation, physical handicap, or medical condition in violation of any law, or on account of any other basis for discrimination prohibited by law. SECTION 20. NOTICES. Any action, notice or request required to be taken, given or made by City hereunder may be taken, given or made by the City Manager of City or such other person or persons as they may authorize for the purpose. A. All notices, requests or other papers required to be given or delivered to Contractor shall be deemed to be duly and properly given or made if mailed to Contractor, postage prepaid, addressed to:

or personally delivered to Contractor at such address, or at such other address as

15 Contractor may designate in writing to City. B. All notices, requests or other papers required to be given or delivered to City shall be deemed to be duly and properly given or made if mailed to City postage prepaid, addressed to: Director of Parks and Recreation City of Sunnyvale City Hall Annex P.O. Box 3707 Sunnyvale, CA 94088-3707 or personally delivered to Director of Parks and Recreation at City Hall, 650 West Olive Avenue, Sunnyvale, California, or at such other address as City may designate in writing to Contractor. SECTION 21. ATTORNEY FEES. The prevailing party in any action brought to enforce the terms of this Agreement or arising out of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with such an action from the other party. SECTION 22. NATURE OF AGREEMENT. MODIFICATIONS.

A. This Agreement does not constitute a contract of employment and the relation of master and servant, employer and employee, does not and shall not exist between City and ______, Contractor or any of its employees. Contractor is and at all times shall be deemed to be an independent contractor. B. This Agreement does not constitute a deed or grant of any easement by the City of Sunnyvale and does not constitute a lease. C. No assurances or inducements of any kind not specifically set forth in the Agreement have been made to Contractor by anyone authorized by City to cause Contractor to execute this Agreement. D. Failure of City or Contractor to insist upon a strict performance of any of the duties, obligations, conditions, covenants or agreements contained in this Agreement shall not be deemed a waiver of any subsequent breach or default in the duties, obligations, conditions, covenants or agreements herein contained. E. Rights of City or Contractor hereunder shall be cumulative and not altemative and shall be in addition to any and all rights which either party shall have as a matter of Jaw.

16 F. No agent, officer or employee of City has any authority to vary or extend the term of this Agreement or any duty, obligation, covenant or agreement contained herein, or to make any statements or representations conceming this Agreement, or the rights and privileges set forth herein, except such as are set forth in any written addendum to this Agreement which has been approved by the City Council. G. This document represents the entire agreement between City and Sports Center. This agreement may be amended only by written instrument, signed by both City and Contractor. Except as may be expressly provided in this Agreement to the contrary, all provisions of this Agreement are expressly made conditions. IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT.

ATTEST: CITY OF SUNNYVALE ("CITY")

By ______By ______City Clerk City Manager

APPROVED AS TO FORM: ("CONTRACTOR")

By ______By ______City Attorney

Name and Title

By ______

Name and Title

17 ATTACHMENT B

Copy of Proposal from the California Sports Center ATTACHMENT B

Corporate office: 838 Malone Rd. San Jose CA 95125 Phone: 408-269-5437; FAX: 408-269-5430 www .calsportscenter .com Email: [email protected] Swim Complex: 1283 Sunnyvale/Saratoga Rd., Sunnyvale CA 9087 Phone: 408-732-2257; FAX: 408-732-7058

December 5, 2006

Proposal No. F0610-34

FOR OPERATION OF PUBLIC SWIMMING PROGRAMS AT FREMONTHIGHSCHOOLPOOL aka: SUNNYVALE SWIM COMPLEX

SUBMITTED BY California Sports Center David M. Peterson, Director

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280~5437; Malone Rd: 269-5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page2

INTRODUCTION

The California Sports Center accepts the opportunity to submit our proposal to the City of Sunnyvale to continue our operations at the Sunnyvale Swim Complex at Fremont High School. As the operator for the City since the pool opened in July of2002, we are proud to have implemented multiple new programs and offered very diverse progranuning for all citizens of Sunnyvale to enjoy and local companies to use as a resource for fitness for their employees. We have also met the challenge of collaborating closely with the school district. We recogoize the need for the City to review other proposals for consideration, but also believe that we are best suited to continue and further develop the operations at tills pool. \Ve intend to expru1d on our successful programs, while also continuing to reach a diverse population and offer new programs, times, and ideas to expand the possibilities and opportunities for aquatics programming for the entire community.

Within a City well known for excellence in customer service and fiscal responsibility, California Sports Center has successfully launched this newer collaboration fonned between the Fremont Union High School District and the City providing the expected excellence. Our objectives would be to match that of the City in extending our relationship for the coming years. We would hope to: A. Enter into a long tenn business relationship. B. Continue to work toward achieving outstanding approval ratings as were received recently with surveys to all patrons for a safe, effective, service-friendly atmosphere and we will continue to uphold California Sports Center's mission, vision, and values (attached.) C. Continue to meet the priorities set forth in the RFP, but shall continue to offer expanded services in the following priority order: a. Adult Lap Swimming b. Masters team development, water exercise, dedicated senior swim times (and rates), lessons specifically for adults, adult water polo, and other adult swimming programs. c. Youth program development for lessons, deemed by our own past customers as the best in the valley; competitive swim readiness -both development toward team, and non-competitive higher level development for high school sports -particularly to support Fremont High School whenever possible. d. Family swims and 'Open' sunnner swim opportunities. e. Safety training for the community at large, as well as regular coaches training and development- a key to California Sports Center's many successes. f. Outside facility group use for the community development of competitive teams. D. Pay the City a fair, equitable and just level of compensation for the facility use and programming offered. E. Maintain the highest quality staff from the start of their positions, through on-going trainings, to their promotions or departures into new and better opportunities.

We look forward to the City's strong consideration to our proposal details to meet the City's needs and to entering into negotiations as soon as possible.

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280~5437; Malone Rd: 269~5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center @ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page3 CALIFORNIA SPORTS CENTER'S PROPOSAL

A. BACKGROUND INFORMATION

1. The California Sports Center (CSC) is a California Corporation structured as a Sub­ chapter S Corp. We have operated as such since 1991 when we incorporated. Before incorporating we were known as the California Gymnastics Center, owned and founded in 1987 by David Peterson. CSC operates seven (7) different sports training facilities in Sunnyvale, San Jose, and Santa Clara. Our focus has been on aquatics and gymnastics prograuuning- both specialized sports. One of our locations is also a contract with the City of Sunnyvale to provide the gymnastics instruction for all recreational gymnastics classes at the City's Indoor Sports Center under the direction of the Parks & Recreation Dept

2. The principal owners of the corporation are David & Anne-Marie Peterson. Our Corporate office and general contact information is as follows: a. David M. Peterson California Sports Center 838 Malone Rd. San Jose CA 95125 phone: 408-269-5437; fax: 408-269-5430 email: [email protected] . web address: www.calsportscenter.com

b. Additional contacts for direct management questions are Ricky Silva and Alanna O'Leary. Both are co-Managers AM shift and PM shift respectively, and can be reached at 408-732-2257.

3. References (more available upon request.) a. Business. i. Steve McCray, Corporate Attorney for CSC Hoge, Fenton, Jones, and Appel, Inc in San Jose. ii. Lynda Boman, Corporate CPA for CSC 111. Shelley Hanson, D&G Sports (equipment supplier) b. Personal (of David Peterson, Principal) i. John Kennett, Rotary Club of San Jose ii. John Rimbach, friend iii. Fr. Jon Pedigo, Pastor

4. Previous to operating this location, CSC operated a pool at Blackford High School for 10 years (1991-2001). Additionally CSC is the premier gymnastics training facility in San Jose. Our focus has been specialized sports and youth training within the sports/activities we offer for nearly 20 years (next year is our 20th Anniversary in business.) A resume of the founder, Dave Peterson is Attachment 1 for your review. Until becoming a stay at home mom and now a Director/CFO of California Sports Center, Aune was a credentialed school teacher, born and raised in San Jose. She received her degree and credential from Chico State University. Providing the opportunity to be the best you can be- Since 1987 Race Street: 280w5437; Malone Rd: 269-5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Su!Ulyvale Swim Complex: 732~2257; Santa Clara: 615~3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt; Corporate Office: 269-5437 RFP No. F061 0-34- Sunnyvale Swim Complex, Fremont High School Page4

CSC's real strength in operations at the pool remains the outstanding staff that CSC hires­ particularly it's leadership team. The pool's operational hours are divided into two halves each week day. There is a 'Shift Manager' assigned to each half of the day, M-F. These two Managers have the most experience in direct operations of the pool and the programs we offer. Each position is outlined with specific responsibilities sharing the development, oversight, and measurement of each swim program or administrative duty they are assigned. Sharing of the direct management responsibilities creates a broad knowledge of each other's roles and improving the overall customer service needs for nearly every operating hour programs are offered. Should one manager be out, the other covers, and the facility is never left with a leadership void in the case of a major change. In addition, weekly meetings are held with Dave Peterson, there is regular financial oversight on location by Anne Peterson, and regular oversight and trainings by CSC's Manager of Program Development, Christopher Brown. CSC believes it has a team ofleaders umnatched at any pool in the area. The resumes of both Shift Managers are Attachments 2 & 3 for your review.

5. Financially, California Sports Center has operated as a successful small business for nearly 20 years (since 1987). We currently have gross sales that exceed $2.5 million annually and are continuing to grow- both fmancially and in our services (locations).

In order to properly account for each of our locations income and expenses - particnlarly those involving City contracts, we have divided each of the separate location operations into separate divisions, all of which should be able to operate independently of each other. Annual budgets. are developed each November and signed off ln December for the next fiscal year. These are developed and signed off by Site Manager(s), the Manager of Program Development, and the Directors (Principals.) The resnlts or 'actuals' are then reviewed monthly and more extensively each quarter. These confidential actual reports for the Sunnyvale Swim Complex are available upon request. Annual budgeting includes plans for funding new equipment, furniture, and capital expenditures as needed. We also maintain a cash reserve to supply emergency funds for capital expenditures for unplanned expenses.

CSC also maintains a business license with the City of Sunnyvale and has been a member of the Sunnyvale Chamber of Commerce since begiJming operations here in the summer of 2002.

6. There is no issue with our credit or fmancial standings. Neither CSC, nor it's Principals, have ever been involved in bankruptcy or insolvency proceedings, or been subject to assignment for the benefit of creditors.

7. Why choose California Sports Center. As mentioned above, California Sports Center bas been the operator of this new facility since it's official opening in June of2002. The contract was signed on June 1, and we were ready for a public ceremony and "open swim" by June 22 and began full operations by July 8. Within a very short time we hired staff, prepared the facility, purchased equipment and supplies, finalized and ordered registration forms, and completed so many other unnamed things. With excellence in mind, we have

Providing the opportunity to be the best you can be- Since 1987 Race Street 280"5437; Malone Rd: 269-5437; Ross Ave: 264-5439; Great Oaks: 360~9400; Sunnyvale Swim Complex: 732~2257; Santa Clara: 615-3199; Sunnyvale Gymna~tics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School PageS

taken the operation of this pool to new levels of service. We have properly and professionally represented the City of Sunnyvale to the best of our ability and believe that our background, knowledge, understanding, and now direct experience in the operation of this pool in this community is vitally important to its on-going success. Areas we feel extremely proud of in our operations the past 4+ years include: a. Most important to CSC is that Safety is #1. We do not hesitate to address safety concerns humbly, but feel extremely confident that there is no safer pool in the entire county and quite possibly the State or nation. This will be further addressed in B.3.i. and B.'S of the RFP. A recent customer survey speaks for itself in this regard with 96'r0 of the respondents rating our safety as Hvery'~ or Hextremely'' ~are, and 98~~ find the facility "clean and inviting". A summary and the actual responses are available from City staff or upon request

b. We were instrumental in developing the on-going regular communications between the development contractor, the school district, and the City. We developed the minutes/notes sharing responsibility with district staff member Gene Longinetti and met nearly monthly for the first two years of operations and now still quarterly. Notes are now maintained by the City with our regular attendance to meetings.

c. We have worked very hard to maintain regular communications with the district at every leveL i. administratively with the appropriate district personnel and on location the schools Vice Principal (there have been three separate contacts at this level since August of 2002), and ii. regarding athletics, with the Athletic Director and the coaches on the pool deck every day.

d. We helped develop the needs assessment for the pool building with regular ·'punch lists' of work to be completed which we maintained for review and further held the co_ntractors accountable for work as best as possible before they departed the campus and the district signed off on the building project Along the way we identified muitiple design flaws and reported them accordingly. We currently maintain a punch list for regular maintenance items in and around the pooL

e. We helped develop signage for the parking lot which helps protect spaces for the community and which would otherwise be used by students and school personneL We assist in monitoring the parking and report abuses when possible or necessary.

f. We quickly and professional address each and every concern or issue that is brought to our attention by customers or by the City for customers. We strive to always find a compromised satisfaction to issues or concerns and above all work to educate the customers, City staff, and elected representatives on the limitations the facility has and that we have as an operator. And when asked to meet with Parks & Recreation staff, or the City's elected representatives, we do not hesitate to make ourselves available.

Providing the opportunity to be the best you can be -· Since 1987 Race Street 280~5437; Malone Rd: 269-5437; Ross Ave: 264~5439; Great Oaks: 360~9400; Sunnyvale Swim Complex: 732~2257; Santa Clara: 615-3199~ Sunnyvale Gymnastics: 823~8492; Coming soon, The Center@ Fender Mt; Corporate Office: 269-5437 RFP No. F0610-34 Sunnyvale Swim Complex, Fremont High School Page6

And finally under #7, I would extend that California Sports Center is ready to continue to address the needs of the City as it relates to programming and services. As noted in our introduction, we have led operations at this pool from the Grand Openllig to the present and developed great relations with our customers, the City staff, and the District staff and we feel quite proud of that fact. We are best suited with our background and experience to work with the City staff to creatively consider new ideas and expand cost effective services for all to enjoy.

B. PROPOSED SwiM PROGRAJ.Vi At'!D SERviCES

1. California Sports Center would have absolutely no problem meeting AND exceeding the required swim schedule for lap swimmers as outlined in the RFP. As has been the case since opening, we have maintained a priority for adult swimmers in all our scheduling and in new and additional offerings that expand the options for adults to swim regularly. Our limitations in lane availability beyond very few holidays, have only been by cause/notification of district priority or their exclusive uses (per the City/District Agreement) and up to 6 community events or competitions per year in support of the local Jr. swim programs. How do we EXCEED the progran1s expectations? a. Increase the daily lanes available to lap swimmers beyond the # of lanes outlined as a minimum in the RFP attachment. b. Increase the# of hours lanes are available throughout the SUU1iller schedule (extending one hour each weekday morning; extending 1. 5 hours each weekday afternoon; and dedicating lap swim lanes on the weekend 'open' swim times in the afternoons.) c. Add 'seniors' only dedicated lanes and tin1es available prior to the noon rush and at the same tin1e as our water exercise classes. Giving more healthy options for seniors and reducing the parking issues that can occur at the standard noon lap swim. d. Increased adult offerings for learning in1proved trainllig through the "CSC Masters - Sunnyvale" program and adult lessons, which further increased the number of lanes available for adult swimmers. e. Offer 50 Meter lane setups (long course) in the SUU1ller mornings and holidays and now winter Thursday's too.

2. CSC utilizes the various areas of the facility in every way possible. We've outlined these areas as follows: a. Main office: Customer Service, lap swin1 and other program sign in, and lesson registration. The main office is also known on the original plans as the 'lifeguard station'. Though originally designed less for customer service than it should have been, it is the sites main greeting station and is open for business throughout the operational day. 6am- 8pm weekdays; Sam- 5pm weekends. b. Training room: Directly behind the main office is the stafftrainllig room and would be best described as a Multi-purpose Work Room. This space is the largest dedicated open space in the facility besides each of the women's and men's locker rooms. Regularly used as the staff room, we disseminate staff information, keep

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280-5437; Malone Rd: 269-5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 61 5-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page7

staff boxes, maintain staff lockers in this room, and use it as a break room too. It is also used as a community room. All community lifeguard training classes are held here along with community First Aid and CPR classes. Community events use this room for hospitality or meetings too. This room is also used for general meetings of the pool staff and management and is the home of the City/District!CSC meetings. This is also the main office supply storage area with secure closets and cabinets. c. There are three 'storage' areas within the facility, each with a secure roll up door. One is used as an area for snacks and as a pro-shop with customer items of interest, the other two are used for equipment storage. One of the three is also a roof access room so has limited uses. d. There are two separate offices. One is used as the Managers office. The other is used as an office for program coordinators. e. There is one small secure maintenance closet with the appropriate drainage for a mop sink and janitorial supplies. f. The locker rooms are the remaining two spaces used specifically as locker rooms for customers, staff, and the general public associated with the programs offered. The nature of the public access of the school property prevents us from barring general public use, but we do our best to monitor the use and do not allow the school to gain general access for classes or teams due to the fact that they have their own locker rooms and campus bathrooms.

CSC would be responsible for all general maintenance of all areas within the building and is responsible for costs associated with normal wear and tear of these rooms, areas, walls, ceilings, floors, fixtures, etc.

3. Types of services to be offered include a diverse offering outline in (a.) through(!.) below. It is our goal to provide all the services and programs listed directly as the operator, but important to note that there are organizations, such as the parent run (formerly City co­ sponsored) local swim team SUNN, that can provide outstanding services and support to purely competitive athletes. esc refers to these groups as 'rental groups' and supports them with limited lane time as long as their programs do not directly conflict with our owu It remains our objective to ensure such uses are in fact limited and that a diverse amount of programming is offered throughout all the operational times available to the City uses. We propose the following services be continued and improved:

a. Lap Swimming- an open swim at times outlined in Attachment A per the City's requirements, plus the added times in the surmner that have become well !mown. We will be outlining a fow more additional hours during the late spring, summer, and fall as apart ofexpanded 'open swim' (f below) planning on Sunday's.

b. CSC Masters - Sunnvvale. This program was started officially in 2004 with Califomia Sports Center registering as a team called "CSC Masters - Sunnyvale". This group of adult swirmners receives coached training during designated times and in designated lanes for their training. Times are offered 6 days a week and shall be increased due to the dedication of these swimmers in new non-peak use times.

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280·5437; Malone Rd: 269-5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center @ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School PageS

c. Water Exercise classes. This program was tested in the summer of2005, and started year 'round in the summer of 2006. Classes are offered in the mornings at 10:3031n only. We will continue to develop new clients and reach out to organizations and groups within the community that might be interested in a fun fitness opportunity in the water for adults. As we expand and advertise the new dedicated senior lap swim times (below), we would hope to see additional interest in the exercise class. The lack of available lanes in the evenings and early mornings, due to other uses, prevent any other offerings than mornings or early afternoons.

d. Dedicated senior lap swim times. i. As noted in #1 above, these times and days will be set with dedicated lanes available for qualified seniors. These will be designed at times in to the s31ne times as the water exercise classes so they can choose their activity for that day.

e. Adult Lessons. These are very popular lessons for adult beginners through intermediate and includes "Intro to Masters" programs including skill specific clinics for the adult interested in a more serious levels of swimming.

f. Youth Lessons. CSC has a comprehensive program of developing skills and progressions that is second to none in the valley. Our focus on 'le31n to swim' as well as more advanced skills development in a fun and safe environment works toward the many competitive swim opportunities available in the area. This has customers coming back year after year and most importantly referring their family and friends regularly to get their lessons from esc. i. We offer group lessons for local preschools in the mornings. ii. Pre-competitive swinnning is a class based program to prepare the more advanced swimmer toward te31n or high school competitive swimming. iii. A new summer recreational league will be piloted in summer of2007 to allow the community at large to participate in local summer competitions without the year 'round obligation of a competitive team. iv. A new ParentTot class is offered in the early fall, and late spring in the mornings -weather permitting.

g. Open Swim. This is a summer progr31n open to the public which will be available Monday-Saturday from mid-June to mid-August. Our offerings are controlled in large part by the City/District agreement which prevents availability until the high school is officially out for summer ("mid-June") and we must end this program offering as soon as after-school sports begin ("mid-August.") i. CSC accommodates several area groups and organizations during open swim with a group rate for larger numbers of kids and we provide appropriate staffmg to address all their safety concerns. Groups include: The local YMCA in Cupertino, the high school summer "Math Club", local sports camp operators, and area preschools are a few examples.

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280~5437; Malone Rd: 269~5437; Ross Ave: 264~5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- SUlll)yvale Swim Complex, Fremont High School Page9

ii. We are considering a NEW program called the "IOOdg Open Swim Day!" In this new program we would offer an evening swim for the whole family whenever the temperature hits 1OOdgs in Sunnyvale. This would take some serious planning and understanding from various regular users since lanes would have to be opened up from regular use, potentially affecting adult lap swimmers. This would be necessary to accommodate the unknown # of attendees of all ages to an open swim. We would also have to be sure we have additional lifeguards on 'standby' for such days. The temp measurement would have to be gauged in someway public and consistent To accomplish this it is our hope that the City will help us gain support of the school district in utilizing their public reader board signage at the front of schooL It is our belief that they have a time and temperature option on that sign. We need only get them to agree to advertise the open swim opportunity on the same reader board to make it more viable, or more 'public.' This would be offered throughout the spring, sunrmer, and falL iii. We believe that there is enough interest to re-consider the expansion of the public "open swim" to include Sunday afternoons. This will be tested in the sunrmer of2007, prior to the start of the new contract Pending participation, it will be continued regularly and possibly into the fall given our control of the pool on that day.

h. Water polo. i. Youth programming. This would be a developmental program of skills for those under the age of 14. These students would eventually become high school program competitors. ii. Adult progranuning. This has been and will continue to be a growing program for adults. We offer this from 8:00-9:30pm twice a week currently and would continue that time and consider adding evenings.

i. Safety training. The California Sports Center is one of the American Red Cross's ptimary training grounds for lifeguard training and CPR for the Professional Rescuer. We have offered and will continue to offer a broad range of safety classes taught by representatives of the ARC. Our own long time staff member, Kim Doyle (a esc part-time employee for over 15 years) teaches these classes along with other certified visiting instructors. Classes are offered in March, April, May, June, and September. We're also open to meeting the needs of the community should additional classes need to be offered such as Water Safety Instruction (WSI). i. Kim Doyle also oversees our Jr. Lifeguard program which introduces younger students to the rigors oflifegnarding and instructing swim lessons. ii. CSC also offers regular community classes for First Aid and CPR at this facility as well as other esc facilities throughout the area.

Providing the opportunity to be the best .YOU can be- Since ] 987 Race Street: 280~5437; Malone Rd: 269~5437; Ross Ave: 264~5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page 10

j. Summer camps. Community interest for summer camps focused around aquatics, and including other activities is under consideration. A test program will be piloted in the summer of2007 including skills clinics and training camps for youth.

k. Regular rental group use. These are outside organizations offering programs which CSC either cannot provide or which esc chooses not to provide. They support long running community programs such as Panda Swim Club and SUNN Swim Team. Operating independently, they continue to meet the needs of the community by offering competitive swim programs. Technically offering something to the community that we choose not to while they remain in good standing.

I. Community event facility use. There are no more than 6 weekend days a year allowed to set aside for outside groups to come in to the facility for local, regional, or national events. These have been primarily local USA Swimming competitions and camps and USA Water Polo tournaments. Annual events have included: Pacific Swimming 10 and under championship and skills camp; SUNN's annual big event, USA Water Polo Women's qualifYing tournament, and Silicon Valley Swim League Championships including several local cabana clubs. We limit the number due to the fact that the District could also call for up to 15 days in the school year for priority or exclusive use of the pool per the City/District agreement. It is our goal to minimize the total number of days per year which may cause disruption to our regular swim programs, particularly lap swimmers.

4. Qualifications of, and the number of, staff for our programs. CSC has a basic structure for the pool that matches that of all our locations. The pool will have two 'shift' managers - one for the first half of the day, the other for the second half. These managers report directly to the Directors (Principals) at CSC. They are assisted by several corporate support positions such as the Manager of Program Development, Christopher Brown; the CSC Safety Coordinator, Kim Doyle; Human Resources, Christy Duzac; and of course they have the support of their colleagues, 6 other managers of CSC locations. These shift managers have principal responsibility to the entire program and deck operation as well as their entire staff from lifeguards, to instructors, to coordinators. Daily coordination and collaboration of our own programs with the district and with other facility users is critical to successful management at this pool. CSC's 'org chart' is as follows: a. Directors i. Managers 1. Coordinators (program specific oversight'responsibility). a. Customer Service staff b. Instructor/Guards (teach lessons and guards as assigned) i. Instructor only ii. Assistant team coaches c. Lifeguards (guarding responsibilities only-no instruction)

Providing the opportunity to be the best you can be - Since 1987 Race Street: 280-5437; Malone Rd: 269-5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page 11

Qualifications of the staff vary based on the responsibility of the staff member, but all CSC employees (company wide) are required to maintain basic First Aid and CPR certification. Lifeguards, most Coordinators, and Managers are required to maintain ARC lifeguard certification and CPR for the Professional Rescuer or the equivalent. Nearly all instructors are also guard certified, but the few instructors without certification are permitted to instruct as long as there is a lifeguard on duty. This occurs mostly in the summer with the increased focus on, and availability of; lessons. I have enclosed the resumes of the shift managers, one of which was hired prior to the signing of the current contract with the City in June of 2002.

5. CSC has an officiai Emergency Action Pian tEAP) for tile pooi. See Attachments 4 & 5. This is printed and posted for all to see at the pool. Staff are repeatedly tested and of course required certifications cover emergencies in their training. Every accident and incident at the pool is required to be written and reported to management of the pool, the Safety Coordinator, the Manager of Program Development, and the Directors. If the Shift Manager and a Director agree it's appropriate, the City will also be informed. Follow up occurs each time, but the level of the follow up depends on the severity of the incident. Each action is taken as an opportunity to lerun and improve.

Specific to progran1s, there is a whistle code known and practiced by all on staff at the pool. This is part of standard lifeguard training. The challenge has been getting the school district staff to recognize these codes as an important link in safe pool activity and respond accordingly during hours when the district is present with their staff ru1d progran1s. So far­ no problems have occurred which were not respected by district staff.

CSC has also been instrwnental in working with the District to develop safety procedures for access to chemical supply rooms and how to create or paint 'safety zones' around doorways leading to such rooms.

6. CSC plans to continue to operate the pool from 5:30!l.ll1 until! O:OOpm weekdays; and from 7 :OOan1 until 7:OOpm on weekends. Current progf!l.ll1s fill the pool during peak times, utilizing all23 lanes, with programs and uses as outlined above in #3. The majority of peak times are noted in "6.b." below. When the district lanes restrict our use, we consolidate programs into the allowable lanes and the poolnses are clearly impacted. Challenges include: a. Getting customers to understand the shared use of the pool with the school district and that we have absolutely no say over certain lanes at certain times of the day. There are times the pool is half empty, but we are not allowed to use the lanes due to district uses. Written communication is provided, but we actively spend I: I tinle with any customer that needs better clarity or understanding as to the limitations we have as the City's operator within the City/District Agreement. b. We need more lanes during peak times. Peak is 6-8am, II :30-1 :30pm, and 3-8pm. c. Having slightly higher water temperatures wonld be welcome by a majority. However, the pool mandate maintains the temperature at 80dg +/- 2 degrees per the City/District agreement. Most serious lap swimmers appreciate this temperature, but seniors tend to appreciate the warmer days as do children leanling to swim.

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280-5437; Malone Rd: 269-5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page 12

The following table outlines our expected uses moving into the new contract, however we do have an established monthly reporting to the City of daily participation and total participation hours. The full report is available upon request. The lanes are assigned after first removing any possible use by the district, then in order of priority as outlined above with adult lap swim as the first priority, but with the primary objective to provide diversity in the choices residents have.

Pro!!:ram overview Av!!:. users Avi!. cost (for #7 below) Lan swimmers 2100 swims ner mo. $3.80 ner swim* CSC Masters - Sunnyvale 25 team members $55.00 per month+ team fees Water Exercise 15 per month $4.00 per swim Senior rate noon Ian swimmers 25 per month $2.50 per swim Lessons (youth & adult) 300 per month $50.00 per month OoenSwim 3000 per summer $2.00 per swim Water nolo lessons 20 per month $80.00 per month Water polo adult drop in 25 coming 8x/mo. $4.00 per swim Safety Training 70 per year $190.00 per class Summer Camus 16percamp $225.00 per camp Rental groups 250 per month $10.00 per hr. per laue Facility uses 2400 per vear $1000.00 per day

7. Proposed fees for programs. We have outlined the average fee for each program in the table with #6 above. Because of the many uses and program one person can attend, the number of users vs number of swims can be complicated. CSC has worked with the City to create accurate numbers of actual participants and participation hours and record and report this information monthly. The full annual report is available upon request. The rates noted in the table are resident rates. Non-residents always pay more as defmed by City staff. a. *The lap swim fee is the most complicated given the many options for the swimmers. The drop-in 1x rate is currently $5.75. The 12 punch pass is $47.00. The monthly pass is $52.00. We also would offer an annual pass once our contract is renewed. Monthly pass holders can attend as many tunes in a month as they would like during the scheduled times. The punch pass aud drop-ins must use a punch for each visit or program they're involved in. b. Each year, CSC has been obligated to review the fees with the Parks and Recreation staff. Our fees are based on a market approach to programs and services available elsewhere in and around the City of Sunnyvale. All prices are structured on a resident vs. non-resident fee with the difference provided to us by City staff. c. Attachment 6 is the first two pages of our 2006 pricing which was reviewed/approved in December of 2005 by city staff and includes all programs. d. We are in the process of completing the 2007 pricing with planned changes to improve (reduce) the pricing for monthly fees for lap swimmers to encourage a move from drop-in and punch pass users to more monthly passes. Such a move, assuming more regular participation, would allow us to move toward automated sign in (such as card swipe attendance) and auto payments.

1 Providin2:.._.. the OD.< 1'JOitunitv,) to be the best .,vou can be-- Since 1987 Race Street: 280MS437; Malone Rd: 269w5437; Ross Ave: 264*5439; Great Oaks: 360*9400; Sunnyvale Swim Complex: 732M2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page 13

e. When reviewing fees annually we review the following: i. program demand- program requests, customer survey's, and general input. ii. Diversified prograntming choices · iii. lane availability iv. how to increase a programs participation to a level that would allow for decreased individual pricing and increased income. v. staffmg requirements to support the program (lessons vs. guarding vs. office support) vi. City staff input f. registration is available nearly all hours-of operation- 7 days per week. g. forms of payment accepted include cash, check, and credit card.

8. Type and extent of advertising. CSC is constantly reviewing our advertising mediums. Our website www.calsportscenter.com is becoming a No.I resource of information by users and those interested in programs. We are listed or linked with multiple organizations complimentary websites such as Silicon Valley Tri-Club, and Pacific Masters. CSC regularly advertises with print ads in the Snnnyvale SUNN, the Bay Area Parent Magazine, the Cupertino Courier, and various other neighborhood newspapers. We have received support of the local schools and multiple community groups to handout general information flyers for lessons and programs. We maintain a full page of programming in the City of Snnnyvale Activity Guide. We have participated in Snnnyvale Chamber of Commerce events such as their Annual Art and Wine Festival. We also participate in City events when held at the community center. With our recent work for the city in the gymnastics prograntming we also promote this pool and other pools of the city to the parents of the children of the gymnastics classes.

We are in constant review of advertising particularly asking how our customers hear about us. Approximately $500 per month is allocated to this site specifically, but our combined budget for print advertising exceeds $50,000 per year for CSC and we constantly reference the pool complex in our documents.

9. The Principal's involvement in the pool operations is on-going and regular. There are two principals: a. As the Founder/CEO/Director of the company I, Dave Peterson, wrote this RFP from start to fmish with review and input by appropriate personnel. I meet weekly with the shift managers and attend regular pool staff meetings on location at the pool and am regularly available to answer questions by all staff anytime 24/7. I have personally responded to City staff requests for meetings whenever and wherever they request them. I attended the council meetings when so expected in receiving the first contract and would welcome the opportunity to do so again and further explain all the great things that we have done and would hope to do in developing a new contract. I have attended all but two City/District/CSC meetings over the last 4+ years. These were held monthly for over two years, and are now held every other month. I am directly involved in all contract negotiations.

Providing the oppmtunity to be the best you can be- Since 1987 Race Street: 280-5437; Malone Rd: 269-5437; Ross Ave: 264~5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page 14

b. As the Chief Financial Officer/Director of CSC, Anne Peterson oversees the financials of the company and develops the job descriptions and hires all "office coordinators" for all CSC locations. She is on location at the pool at least once per week to review fmances and programs as well as meeting regularly with Managers to review budgets, monthly actuals, and performance of office staff. Anne is also directly involved with staff trainings and creating a fun environment for all employees. By education, her profession is teaching and with a predominately young staff, she is able to educate staff on how to give their best through creative learning opportunities. Coupled with Christopher Brown, the Manager of Program Deveiopment and CSC's key coaches coach, our t;taf[training is the best in the west. c. Though we maintain a separate corporate office in San Jose our participation at the pool is consistent with the needs of the community and management.

10. Term of the agreement. a. California Sports Center is proposing an initial 8 year contract agreement to end August 30, 2015; with two additional5 year options to extend through the term of the City/District agreement. This would allow for consistent operations and allow the City to consider changes appropriately in 8 years and again each of 5 years thereafter in leading to an end or renewal with the District for operations beginning in 2025. b. We would also encourage the City to amend the City/District agreement to end Sunday, August 31,2025 so as to provide the citizens of Sunnyvale a complete summer program the final year at the pool without disruption. August 16 would be the last Saturday of pool use activities before the after-school district programs begin and the school returns to normal activity. Turnover of the facility operations on Monday, September 1, 2025 would allow for two weeks after activities end to properly vacate and prepare the facility for new operations to begin.

11. California Sports Center's approach to scheduling. Given the complex management of the City/District agreement for district use of hours/lanes . for regular school classes and their after-school aquatics sports, we review our regular scheduling at least quarterly, but it never ends there. a. Monthly reviews of certain programs all the way down to daily changes on the deck are made regularly and as needed. b. Our focus has always been on providing diverse programming while meeting the needs of the city contract for lap swim hours and lanes and that of the districts needs. c. We limit the number of lanes and hours that swim teams can use the pool, while at the same time further developing lessons for all ages- which in turn has created a growing demand for more lanes for lap swimmers and more advanced students. It's a positive "Catch 22''. d. Our goal will be to increase new program times and improve class options for those more flexible in their daily schedules (the retired and seniors, the stay at home moms, young parents interested in parent-tot classes). We have begun offering mid­ morning classes and will expand on this more if given the opportunity to do so in the coming years.

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280~5437; Malone Rd: 269~5437; Ross Ave: 264~5439; Great Oaks: 360~9400; Sunnyvale Swim Complex: 732~2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823w8492; Coming soon, The Center @ Fender Mt.; Corporate Office: 269-543 7 RFP No. F06!0-34- Sunnyvale Swim Complex, Fremont High School Page 15

12. Other information that makes California Sports Center the best choice for the City. Children make up a great part of CSC's overall business, but at the swim complex less than half of the regular participants are kids. The adult participants are key to t!Jis pools use and we recognize that and continue to work to improve on it. We consider the smaller fanilly owned business approach to all our actions a critical part of our many successes in this community. CSC has over 100 people employed throughout all our programs with 20 regularly at the pool. We strive to involve everyone in decisions and yet remain focused as owners -as the heads of the family- on what we believe is right and fair for all concerned. We have attached our nJission, vision, and values for your review and consideration. Attachment 7. These are the values we turn to when we need an answer to a concern or issue for which we need direction.

Finally, CSC would like to be sure there is little if any disruption to the programs and services offered at the pool. Whether the City operates it themselves or another operator is selected, the rebuilding of a new program operator will most certainly cause concern for regularly participating residents who, as a strong majority have been very happy with our prograronJing and services. Over 95% of customers from a recent customer satisfaction survey indicated they were Very Satisfied with programs, services, and safety. CSC allows for the operation to continue seamlessly while allowing the City to negotiate any needed provisions for service changes in to the next contract.

C. SWIM BUILDING MAINTENANCE.

1. General cleaning, trash removal, stocking of paper supplies, and general maintenance of the locker rooms, locks, and fasteners, etc., will be maintained by CSC management and staff throughout each day. We would complete the appropriate work orders and communicate to tl1e City staff as needed for any repairs agreed between ilie two parties as to responsibilities. 2. Repair and replacement of windows, light bulbs, and fixtures that break or fall under need for repair due to nonnal wear and tear, shall be overseen by the management. Where appropriate CSC will hire contractors or services to do certain work. Windows shall be replaced by, either district, city, or CSC's contractor, Speedy Glass, and paid by CSC. 3. A professional janitorial services company has been hired to service ilie facility on a regular basis throughout the year. 7 days per week at least 9 months out of the year. During the reduced activity of the winter months these services are cut back in lieu of internal staff responsibilities for full-time staff.

D. USE AND REMODELING OF THE BUILIDING AND FACILITIES.

CSC would propose to work with the City to improve the facility in many ways that relate to customer service requests by clients and for improved maintenance. This should include: 1. adding air conditioning or at least improved air circulation to the locker rooms. 2. adding a cover or awning over the main office door for greeting customers under cover. The current building design does not accommodate the customer standing in the rain to do sign ups or sign ins - throughout the wet times of ilie year.

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280~5437; Malone Rd: 269~5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F0610-34- Sunnyvale Swim Complex, Fremont High School Page 16

3. building a more permanent cover for the waiting area/bleachers for parents of students in lessons. 4. add lane line reels for 50 Meter dedicated use.

F. EQUIPMENT AND FURNISHINGS

CSC has already invested in the furniture needed for all the areas. Regular maintenance and replacement would occur annually or as needed. Annual budgets include expenditures for up to $2000 per year for such items. This also includes regular maintenance of required safety equipment and suppiies. esc would do the foiiowing with a new contract: 1. Improve the fencing or ground markings of the pool for improved ingress and egress of participants to the pool itself. esc already has an area with temporary decorative fencing that helps maintain safety and provides a controlled viewing area for the parents waiting for kids to complete lessons. We would add more of this type of control in other areas of the complex. 2. Replace some of the general office furniture currently being used in the multi-purpose room. 3. Add wall mounted pace clocks to the pool. 4. Work closely with the District to improve and be allowed to use the scoring and timing equipment for events. 5. Add electronic security in and around the pool building with particular view of deck areas. Internal security would include alarms. External security would include use of digital recording devices during closures would protect the pool and deck areas.

G. YEARLY OPERATIONS SUMMARY (Business Plan)

CSC has attached its Yearly Operations Summary Forms for the proposed 8 years of operation. Attachment 8. This was submitted for each year and in a one page sununary of all 8 years. The City's retnrn is outlined as $48,000 each year for the first three years; $51,000 each year for the second three years, and $54,000 each year for the last two years. CSC maintains all operational income and expenses as outlined. Annual operating expenses average over $500,000 annually to maintain the level of services outlined. As outlined in this document, our annual budgeting process begins in November each year for the fiscal year January-December. Our budgets are much more detailed than the sununary requests.

H. START UP STRATEGY

CSC is in need of no start up, and therefore does not have a start up strategy. As the pools first and ouly operator the frrst 5 years, we would not need to 'start up'. We are the only operator that can guarantee continued operations at this pool without disruption. All items # 1-9 have been addressed as continuing operations in the above documentation.

Providing the opportunity to be the best you can be- Since 1987 Race Street: 280~5437; Malone Rd: 269-5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; SunnyvaJe Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 RFP No. F061 0-34- Sunnyvale Swim Complex, Fremont High School Page 17

In closing, we look fmwa.rd to working with the City of Sunnyvale to continue the operations at the Sunnyvale Swim Complex and hope that this proposal meets with the City's approval. If selected for the opportunity to negotiate a new contract, CSC will work closely with the City staff in all aspects of providing the community with outstanding diverse programs.

As per the requirements set forth in this RFP No. 0610-34. I, the undersigned, submit the above as a planned operation tor the City of Sunnyvale's use as outlined in the referenced City/District Agreement for the Sunnyvale Swim Complex at Fremont High School. ,~DQ~·~- David M. Peterson Director I Principal California Sports Center [email protected] 408-269-5437

Yrovlcimg- .,. tl1e. Oj)portLmltv. to "1'be t:1e oest vou can l)e- 0'.::,mce i'"0'7 ':76 ~ ' ~ ~ Race Street: 280~5437; Malone Rd: 269~5437; Ross Ave: 264-5439; Great Oaks: 360-9400; Sunnyvale Swim Complex: 732-2257; Santa Clara: 615-3199; Sunnyvale Gymnastics: 823-8492; Coming soon, The Center@ Fender Mt.; Corporate Office: 269-5437 I I

I I

I I

I I 838 Malone Rd 408·269·5437 phone San Jose, CA 95126 408-269-5430 fax dave@ca!sportscenter.com Dave Peterson

Business Founder/Director- California Sports Center. San Jose based small business with over 100 employees. Direct responsibility in three main areas, the competitive team program, the managers of each of 7 locations, and general oversight of all future development and community outreach.

Owner/Director since 1987 of California Sports Ceimter • Founded 1987, Incorporated 1991. Privateyouthsportstraining. • 7 locations - San Jose, Santa Clara, Sunnyvale; 100 employees • Gross sales $2.4M in 2005; on track for $2.8M in 2006. • Currentiy teaching over 2000 children and over 300 adults weekly - gymnastics, dance, swimming, and related in a private setting.

Bean:! of Directors, Rotary Club of San .lose • 420 members. Member since 1992; Elected to the board for 2003-2005 • Chainnan, Enterprtse Leadership Conference, 2002

Board of Directors, San .Jose Medical Center Foundation • Currently Secretary; Joined the board in December, 2002 • Worked for the board developing a Youth Philanthropy community project from June 2001 to June 2002.

Founding Board Member, School Health Centers, 3/0~03 • A multi-million dollar public benefit corporation fonned to continue development of on-site community health centers on school sites. Professional Member, USA Gymnastics. Since 1960 Member, Northern CA Boys Gymnastic Association Member, Northern CA Women's Gymnastics Association instructor Specialist, San .lose State Univ., 1997-2001

1979-83 San Jose State University San Jose, CA • B.S. Physical Education, 1983

Family Ricky D. Silva

Summary of Qualifications

o Aquatics experience: Developing aquatics programs for all levels of swimmers. Developing and overseeing a comprehensive budget. Coordinating swim lesson progranis and preRcompetitive programs. Coaching all levels of swimmers from novice to national level. Pool maintenance experience. Hiring, training and supervising lifeguards, assistant coaches.. swim instructors and office staff. Contract negotiation and on-site management of with parent run organizations, USA Swimming groups and events, multi-sport clubs and organizations and other related community groups. Speaker at the 1997 American Red Cross State conference.

• Aquatics courses: CPR for the Professional Rescuer, First Aid, Safety Training for Swim Coaches, Certified Pool Operator, Lifeguard Training, American Swim Coaches Association Levels l, II and Til as well as Master's Coaches School and 8 and under coaching school. Attended numerous aquatics conferences including ASCA World Conferences in 96, 97,03 and 04, Age Group Coaches College at the Olympic Training Center in Colorado Springs and the ASCA Napa Clinic. .

e Community relations: Developing and coordinating marketing and public relations campaigns within the local community as well as on a national level. Writing and securing funding through grants and special community funds. Overseeing campaign budgets, managing and recruiting volunteers throughout the community. Trained and certified as a Public Information Office with the American Red Cross.

Accomplishments within Pacific and USA Swimming

• Nominated in 2004 and 2005 for Pacific Swimming Age Group coach of the year • Head Coach of the Pacific Swimming 2004 Western Zone All Star Team (Redding) • Head Coach of the Pacific Swimming 2005 Quad Team in (Long Beach) • Head Coach of the Pacific Swimming 11~12 select camp in 2006, 2002 and 2001 • Coach for the USA swimming Western Zone select camp (University ofUtah 2006) • Head Coach and/or Manager of the Zone I North All star team in 2005, 2004 and 2002. • Currently a member of the Pacific Swimming Age Group Committee and Camps Committee e Past vice chair of Zone 1 North of Pacific Swimming/Current secretary (2006~2007) • Assistant coach for the Pacific Swimming Western Zone team in 2001 (Maui) • Assistant coach for the Pacific Swimming Quad team in 2001 (Las Vegas)

Professional Experience

May 2002-present California Sports Center Aquatics Shift Manager/Head Mruters Coach Created a comprehensive aquatics program at Fremont High School in Sunnyvale (2002.) Since its inception, the program has grown to almost $500,000 in gross sales, and includes programs such as swim lessons, a masters swim team, adult and youth water polo, lap swim, recreational swim, pre-competitive program, triathlon training and rental groups (swim schools and USA swim team.) Created program schedules and negotiated pool use with the Fremont High School District and the City of Sunnyvale. Manage a staff of over 30 part time employees, including coaches, instructors, guards and office staff. Currently the Head Coach ofCSC Masters-Sunnyvale, which was fuunded in 2003. 2001-present Palo Alto Stanford Aquatics, Palo Alto California Head Age Group Coach-Rinconada site Coordinate and develop two groups of swimmers ages 11-13 and pre-competitive. Oversee the age group program, which includes over 220 swimmers ages 14 and under and three assistant coaches. Since joining the Palo Alto Swim Club in 200 I (now Palo Alto Stanford Aquatics) the team has grown to over 700 swimmers. The Rincon ada site currently has over 260 swimmers. Created and currently coach a pre-competitive swim program in 2005, which has grown to over 40 swimmers and has generated additional revenue used to cover pool rental costs. One of several coaches who created PASA­ which is currently the ranked. by USA swimming as first in Pacific Swimming 14"' overall in the United States.

• Far Western Champions in 2005 (long course) Third at sunnner Sectionals large team division (over 40 swimmers attended) • Zone 1 North Champions in 2006 and 2005. • Developed swimmers at our site (since 2001) who have acheived Junior National, Senior National and Olympic Trials time standards. • 13 year old swimmer achieved USA Junior National and US open times (200 breast) in 2006. Three sectional swimmers in 2006 (13-14 group) • Two swimmers selected by USA Swimming for the Zone Select camp in 2006 • Swimmers have broken over 50 PASA team records • Two swimmers have broken Pacific Swimming records • Swimmers have achieved 18 Top 16 times in the country • Three swimmers selected by Pacific Swimming as LSC pacific swimmers of the year in their age groups.

1995-2001 SOLO Swim Club, Menlo Park, CA Head Age Group Coach-I 99 5-200 I Head Coach- 1999'2000

• Finished in the top 12 at Far Westerns in 1995 and 1996 • Finished in the top 3 at Zones in 1995 • Several swimmers selected by Pacific Swimming for Western Zones • Ten finalists at CCS championships in 2000. • Three swinuners selected as Pacific Swimming top 3 swimmers 1997-2001

1994-1997,2000-2001 City of Menlo Park Head Coach/Aquatics Coordinator-2001 Seasonal employee-guardlinsttuctor/coach (1994-2001)

02/1999-06/2000 ImproveNet, Inc. (Project Manager)

09/1995-06/1997 American Red Cross (Community Resource Coordinator) Palo Alro Area Chapter

09/1994-06/1995 Gemini Aquatics (Pre-Senior Coach)

09/1992-06/1994 Anaheim Aquatics Association (Head Age Group Coach-Canyons Site)

Education

1995 California State UnivHsity, Fullerton, CA B.A. in Communications-emphasis in Public Relations

References (available upon request) ~wuw0f~ Alanna O'Leary

OBJECTIVE Enthusiast for advancing youth bettennent programs specializing in aquatics

QUALIFICATION IDGHLIGHTS • More than 5 years experience working with students of all ages in educational enviromnent • Successful assistance of studies and athletics with student athletes

PROFESSIONAL EXPERIENCE 2003-Present llead Coach • Boulder Aquateens- Boulder, CO. • Motivational coaching of athletes ages 8-18 striving for national competitons • Coach representative and consultant on board of directors • As Regional Educational Chair organized, developed and delivered elite educational clinics with Olympic clinicians • Micromanaged assistant coaches with sensitivity and compassion for their work, educational and personal commitments G Developed parent~coach relationships for positive, constructive results

05/0 l-06/06 Instructor- Boulder Community Hospital (Mapleton Therapy Pool)- Boulder, CO. • Design of gentle and individual instruction for students in therapy pool environment fur aquatic development, injury prevention and technique • Coordinated scheduling and ongoing positive public relations with clients • Helped maintained safe, constructive environment for optimal learning experience

08/03-08/04 Performance Swimmer-World Entertainment- Sea World, San Antonio, TX. • Dedicated member of team responsibility for choreography of show material, safety precautions, injury prevention and cooperative teamwork

04/04-08/04 l11structor- Love to Swim School- San Antonio, TX. • Developed lessons and small group instruction of swimmers ages 4 to 15 • Created and maintained secure, comfurtable environment condusive for learniog

10/02- 8/03 Medical Assistant- Rocky Mountain Cancer Centers- Boulder, CO. • Maintained organization and care for clinical oncology practice • Developed team work with physicians and clioical staff for effective patient visits

02/99-08/00 Justructor- De Anza Cupertino Aquatics- Cupertino, CA. • High energy small group instruction of all ability levels

05/97-09/99 Assistant Manager Aquatics Program/II!structor - California Sports Center- San Jose, CA. • Developed and maintained excellent customer relations and care of patrons • Continuous organization and allocation of students into proper class levels

EDUCATION Completed 2002 University of Colorado at Boulder, Boulder, CO. Molecular, Cellular, and Developmental Biology, B.A

ADDITIONAL ACCOMPLISHMENTS • NCAA swimming career 1997-2002. • UCSC record for the 200 backstroke in NCAA Division II!lJI • USA National Team, Synchronized Swimming (1994-1997)

Keterences available upon request #A(_.·.·~~~ WHISTLE DESCRiPTIONS 2 SHORT, 1 LONG-activates EAP 1 SHORT-attention getting 1 LONG-signifies end of a program

Fremont Pool EAP

I. Lifeguard recognizes someone in need of innnediate help

2. Lifeguard activates EAP by blowing whistle three times- 2 short, I long (evacuate pool) All staff provide back-up coverage, additional help Control byt>i.ai:ul~rs, deal with part:ui/guun.liau, assisting guard-multiple viotims, Clearing the rest of the facility. Staff in office at the time of whistle calls EMS personnel if necessary. ALWAYS use cordless phone where possible, so you can remain on line to dispatch, and move around if necessary. 3. Staff member brings out the First Aid Kit hanging in the office and AED.

4. Lifeguard follows General Rescue Procedure for water or land. Water- survey scene and safely enter water -determine if victim is distressed, passive, active -perform appropriate rescue -move victim to safety -remove from water using backboard if unable to leave on their own -provide emergency care -perfonn primary survey (CABC) -call 91 I if no breathing, no pulse, anything determined that threatens the victims life (i.e. sever bleeding, spinal, bums, sudden illness, diabetic shock, cardiac arrest, beat ) -after 911 call, large gate must be opened with Fl key, and CSC staff or volunteer remain in parking lot to flag down and direct EMS -perform secondary survey

Land Emergencies - survey the scene and approach victim -provide care as necessary

5. Lifeguard notifY manager- manager or acting manager on duty

6. Manager to notifY Dave Peterson if injury is serious or fatal408 210-3561

7. Manager, or staff designated by manager, or bead lifeguard of shift will interview witnesses *Remember, FACTS only* -this is done privately in one of the offices

8. Lifeguard who made rescue fills out accident/incident report- anyone else involved must also fill out an accident/incident report form

9. All equipment used in rescue must be checked out and made ready for next use. All supplies must be replenished, and secondary backboard made available before re-opening

10. Corrective action taken for any situation that may have contributed to the incident before facility re-opens.

11. Follow up with staff discussion- TBD by incident (involved personnel and memo to all staff) C a I

I" EMERGENCY ACTION PLAN WHISTLE DESCRIPTIONS: 1 SHORT- attention getting 1 LONG- signifies the end of a program e.g. Adult Lap Swim

~···························································································• • • • • ~ 2 short, 1 long - activates EAP, and evacuate the pool. ~ : .• • • : ...•••••••...... •••....•..••••••...... ••••••....•••••.....•••.•••...... •••.....••. ~

}> Lifeguard activates EAP by blowing the appropriate whistle

}> All patrons MUST leave the water immediately

>- Lifeguard follows General Rescue Procedures for water or land

}> Lifeguard notifies Manger

>- Manager notifies Director ofCSC -Dave Peterson 408 269-5437

>- Manager, or staff designated by manager, will interview witnesses

>- Accident/incident reports will be filed

>- All equipment used in rescue will be checked out and made ready for next use.

>- Corrective action taken for any situation that may have contributed to the incident

before the facility re-opens

Providing the opportunity to be the best you can be Physical Address is: Sunnyvale Swim Complex; Fremont High School 1283 Sunnyvale-Saratoga Rd., Sunnyvale, 94087 Corporate Office: 838 Malone Rd, San Jose, CA, 95125 Phone: 408-732-2257; FAX: 408-732-7058 www.calsportscenter.com

2006 Fee Schedule as of February 15, 2006 & good through December, 2006 Sunnyvale Swim Complex

Adult Programs

In 2006, CSC is increasing its fees between 3-5% for most programs and will continue to maintain at or above the required number of lanes for lap swimming as agreed in the CSC/City agreement. The "CSC Masters - Sunnyvale" program requires monthly fees and continued registration with Pacific Swim US Masters to participate in scheduled workouts in reserved "Masters" lanes. Registration will determine the need and desire for specific "coached" times and additional lanes for training. Extra lanes, when available and reserved for Masters swimmers, will only be available to those having a current registration card with Pacific Swim US Masters. All the "lap swim" lanes required within the CSC/City agreement, will be maintained during the masters swim times. Family Lap Swim is a new program that will also be offered with designated times and additional lanes for the family.

Resident Non-Resident Rates per person Rates per person Lap Swim Drop in $5.75 per day $7.75 per day Lap Swim (punch card 12x) $47.00 $57.00 •:• Senior Rate (55+yrs) $30(mid-day only; M-F) $40.00 (mid-day only; M-F) Lap Swim (Monthly) $52.00 $62.00 Lap Swim (6 months) $290.00 $355.00 Lap Swim (12 months) $525.00 $625.00 Water Exercise Classes $6.75 $8.75 CSC Masters Swimmers* $55.00 monthly+ $25/quarter. $65.00 monthly+ $25/quarter. Masters Drop-in $6.75 per day $8.75 per day *Registration with Pacific Swim/US Masters is required. Forms are available from the front office.

Summer Open Swims

In 2006, CSC has scheduled the public "Open swim" for weekdays Monday- Friday 1:00pm- 3:00pm June 19-August 18 and Saturdays 1:00pm-3:00pm from June 24- August 19. In offering this program we have an "Open Swim Pass" available for individuals- yonth and adults. Passes will only be good for the times noted above for "Open Swim". Resident Non-Resident Rates per person Rates per person

Individual Drop in $2.00 $3.00 Individual Summer Season Pass Early Bird $45; after June 1 -$59. $55/$69

Providing the opportunity to be the best yott con be Corporate Office: 269-5437; Great Oaks: 360-9400; Race Street: 280-5437; Willow Glen-Malone Rd: 269-5437 Santa Clara-Benton Ave: 615-3199; Cambrian-Ross Ave: 264-5439; Sunnyvale: 269-5437 Lessons In 2006, CSC will continue to offer lessons to the public with more offerings and earlier signup opportunities. Group and semi-private lessons will be offered throughout the year, Monday through Friday and Saturdays as well. Lessons will included a focus around all the safety components of the American Red Cross- "Learn to Swim" program, and be enhanced by CSC's personalized approach to improved stroke development for competitive development opportunities. Lessons will be defmed within two seasons -the school year (September-May monthly fees) and the summer (June­ August session fees). Each 'month' will consist of 4 weeks as defmed by the CSC Attendance Calendar.

Resident Non-Resident Lessons Rates per person Rates per person September-May (per month- 4 weeks in a month) Group Lessons $52.00 per month ( 4 lessons) $62.00 per month ( 4lessons) Semi-Private Lessons $60.00 per month (4lessons) $70.00 per month (4lessons) Saturdays are as listed above throughout the year.

June-August (two week sessions) MJW/F (6lessons) Tu/Th {41essons) M-F (10 lessons) Semi-private (Level1-3) $80.00 $56.00 $126.00 Group Lessons (Level4-6) $75.00 $50.00 $115.00 Sibling discounts are offered in the swnmer only at 25% off the second, third, etc., for children of the same household. The rates listed for June-August are resident rates. Non-residents will pay $10 more per siguup.

Pre-Competitive (monthly) $81.00 $91.00 Private Lessons Signup at the office. Costs are determined by the instructors.

Age Group (youth) Waterpolo $17 5 (continuous 8 week sessions -two months combined) (non-residents +$1 0) Drop in Waterpolo (adults) same as lap swim rates same as lap swim rates

Other Uses In addition, CSC will continue to offer opportunities for group use when it can be scheduled in or around all regular activities. This includes one time and monthly uses.

Resident Non-Resident Rates per person Rates per person One time per lane use $15.00/hr./lane $17.00/hr./lane One time exclusive use $1500.00/day $1750.00/day Monthly Group Use Fees $12/hour/lane for short course; $33/hour/lane for long course (negotiable)

Specialized Classes/Camps TBD TBD Lifeguard Training $199.00 same Jr. Lifeguard Program $150.00 same Water Safety Instructor (WSI) $TBD san:\e American Red Cross CPRJFA $45.00 same

o Fee Waivers are available through the City of Sunnyvale Parks and Recreation. o Sign in will be required, or roll will be taken for specified classes, each time the pool is used. o Residents will be required to show proof of residency with each purchase.

For additional information ask for the Program Descriptions that support the programs and fees noted above, or visit us on the web at www.calsportscenter.com, or call us at 732-2257. Providing the opportunity to be the best you can be Corporate Office: 269~5437; Great Oaks: 360~9400; Race Street: 280~5437; Willow Glen~Malone Rd: 269~5437 Santa Clara~Benton Ave: 615~3199; Cambrian~Ross Ave: 264-5439; Sunnyvale: 269-5437 OUR MISSION To provide the opportunity to become the best you ean be. OUR VISION We provide building bloeks for sueeess through physieal aetivities, where ehampions train and everyone is welcome. OUR VALUES * We believe that everyone should be given the opportunity to participate in physical aetivities. *We believe success is growing to reach your potential

* We value satisfied eustomers. * We value our talented employees and their eontinued growth & education.

* We value a safe, healthy environment for all. * We believe that profitability is essential to our future suceess. * We value healthy competition. * We value fun. 2007-2008 esc AttachmentS

INCOME

Activity Fees $352,593.00 (Lap, Lessons, Masters, Pre-camp, Lifeguard training, Open Swim, Water Polo, Water Fitness) Rental Income $64,000.00 Other Sales/Services $2,000.00

Gross Revenues $418,593.00

EXPENSES

Payroll including taxes $284,000.00 Office Supplies $3,000.00 Expendable Equipment $2,000.00 General Supplies $3,600.00 Maintenance/Repairs/Cleaning $20,000.00 Insurance (Liablility & Workers Camp.) $33,000.00 Marketing/Publicity $6,000.00 Professional Fees (Accounting, Legal, Payroll) $5,000.00 Telephone $1,800.00 Utilities Paid to City $10,000.00 Return to City $48,000.00

Total Expenses $416,400.00

Net Profit $2,193.00

Based on 5% fee increase annually 2008-2009 esc Attachment g

INCOME

Activity Fees $370,222.65 (Lap, Lessons, Masters, Pre-comp, Lifeguard training, Open Swim, Water Polo, Water Fitness) Rental Income $66,000.00 Other Sales/Services $2,000.00

Gross Revenues $438,222.65

EXPENSES

Payroll including taxes $298,200.00 Office Supplies $3,000.00 Expendable Equipment $2,000.00 General Supplies $3,800.00 Maintenance/Repairs/Cleaning $20,600.00 Insurance (Liablility & Workers Comp.) $34,650.00 Marketing/Publicity $6,000.00 Professional Fees (Accounting, Legal, Payroll) $5,250.00 Telephone $1,800.00 Utilities Paid to City $10,000.00 Return to City $48,000.00

Total Expenses $433,300.00

Net Profit $4,922.65

Based on 5% fee increase annually 2009-2010 CSC Attachment~

INCOME

Activity Fees $388,733.78 (Lap, Lessons, Masters, Pre-comp, Lifeguard training, Open Swim, Water Polo, Water Fitness) Rental Income $68,000.00 Other Sales/Services $2,000.00

Gross Revenues $458,733.78

EXPENSES

Payroll including taxes $313,110.00 Office Supplies $3,100.00 Expendable Equipment $2,500.00 General Supplies $3,800.00 Maintenance/Repairs/Cleaning $21,218.00 Insurance (Liablility & Workers Comp.) $36,382.50 Marketing/Publicity $6,000.00 Professional Fees (Accounting, Legal, Payroll) $5,512.50 Telephone $1,800.00 Utilities Paid to City $10,000.00 Return to City $48,000.00

Total Expenses $451,423.00

Net Profit $7,310.78

Based on 5% fee increase annually 2010-2011 esc AttachmentS

INCOME

Activity Fees $408,170.47 (Lap, Lessons, Masters, Pre-comp, Lifeguard training, Open Swim, Water Polo, Water Fitness) Rental Income $70,000.00 Other Sales/Services $2,000.00

Gross Revenues $480,170.47

EXPENSES

Payroll Including taxes $328,765.50 Office Supplies $3,100.00 Expendable Equipment $3,500.00 General Supplies $3,900.00 Maintenance/Repairs/Cleaning $21,854.54 Insurance (Liablility & Workers Comp.) $38,201.63 Marketing/Publicity $6,000.00 Professional Fees (Accounting, Legal, Payroll) $5,788.13 Telephone $1,900.00 Utilities Paid to City $11,000.00 Return to City $51,000.00

Total Expenses $475,009.79

Net Profit $5,160.68

Based on 5% fee increase annually 2011-2012 esc AttachmentS

INCOME

Activity Fees $428,579.00 (Lap, Lessons, Masters, Pre-camp, Lifeguard training, Open Swim, Water Polo, Water Fitness) Rental Income $72,000.00 Other Sales/Services $2,000.00

Gross Revenues $502,579.00

EXPENSES

Payroll including taxes $345,203.78 Office Supplies $3,100.00 Expendable Equipment $2,000.00 General Supplies $3,900.00 Maintenance/Repairs/Cleaning $22,510.18 Insurance (Liablility & Workers Camp.) $40,111.71 Marketing/Publicity $6,200.00 Professional Fees (Accounting, Legal, Payroll) $6,077.53 Telephone $1,900.00 Utilities Paid to City $11,000.00 Return to City $51,000.00

Total Expenses $493,003.19

Net Profit $9,575.81

Based on 5% fee increase annually 2012-2013 CSC Attachment~

INCOME

Activity Fees $450,007.94 (Lap, Lessons, Masters, Pre-comp, Lifeguard training, Open Swim, Water Polo, Water Fitness) Rental Income $74,000.00 Other Sales/Services $2,000.00

Gross Revenues $526,007.94

EXPENSES

Payroll including taxes $362,463.96 Office Supplies $3,150.00 Expendable Equipment $2,000.00 General Supplies $4,000.00 Maintenance/Repairs/Cleaning $23,185.48 Insurance (Liablility & Workers Comp.) $42,117.29 Marketing/Publicity $6,200.00 Professional Fees (Accounting, Legal, Payroll) $6,381.41 Telephone $1,900.00 Utilities Paid to City $11,000.00 Return to City $51,000.00

Total Expenses $513,398.14

Net Profit $12,609.80

Based on 5% fee increase annually 2013-2014 CSC Attachment f8

INCOME

Activity Fees $472,508.34 (lap, Lessons, Masters, Pre-camp, Lifeguard training, Open Swim, Water Polo, Water Fitness) Rental Income $76,000.00 Other Sales/Services $2,000.00

Gross Revenues $550,508.34

EXPENSES

Payroll including taxes $380,587.16 Office Supplies $3,150.00 Expendable Equipment $3,500.00 General Supplies $4,000.00 Maintenance/Repairs/Cleaning $23,881.05 Insurance (liablility & Workers Camp.) $44,223.16 Marketing/Publicity $6,500.00 Professional Fees (Accounting, Legal, Payroll) $6,700.48 Telephone $2,000.00 Utilities Paid to City $12,000.00 Return to City $54,000.00

Total Expenses $540,541.84

Net Profit $9,966.50

Based on 5% fee increase annually 2014-2015 CSC Attachment S

INCOME

Activity Fees $496,133.76 (Lap, Lessons, Masters, Pre-camp, Lifeguard training, Open Swim, Water Polo, Water Fitness) Rental Income $78,000.00 Other Sales/Services $2,000.00

Gross Revenues $576,133.76

EXPENSES

Payroll including taxes $399,616.52 Office Supplies $3,150.00 Expendable Equipment $2,000.00 General Supplies $4,000.00 Maintenance/Repairs/Cleaning $24,597.48 Insurance (Liablility & Workers Comp.) $46,434.31 Marketing/Publicity $6,500.00 Professional Fees (Accounting, Legal, Payroll) $7,035.50 Telephone $2,000.00 Utilities Paid to City $12,000.00 Return to City $54,000.00

Total Expenses $561 ,333.81

Net Profit $14,799.95

Based on 5% fee increase annually ATTACHMENT C

Copy of Proposal from the Northwest YMCA ATTACHMENT C y

YMCA We build strong kids, strong families, strong communities.

December 6, 2006

Dear Mr. Lawrence and Review Committee:

Enclosed is a proposal from the Northwest YMCA to partner with the City of Sunnyvale and the Fremont Union High School District to operate the pool at Fremont High School. The YMCA is very interested in partnering to deliver programs to the city. We bring a number of unique attributes including important experience in aquatics safety, training, and programming for all ages to this potential partnership. The YMCA has been the nation's leading provider of swim lessons for over 100 years. We also base our program operations on our 4 core values of caring, honesty, respect and responsibility, and will incorporate the developmental assets identified by the Search Institute into our youth and family programs.

We have included a draft budget with the proposal with an estimated income. This is a draft because the time frame for the RFP precluded doing the necessary market research to determine demand and income potential. We are confident about the expenses required to deliver the amount of programs as defined in the proposal. Ifthe city would like to further explore working with the YMCA to manage this resour.ce for the community, we would be eager to work with you. If we determine that the enrollment can support the expenses, we would be willing to negotiate the management of net funds.

We look forward to hearing from you.

Sincerely, ~~~~ Elaine Glissmeyer

Northwest YMCA • 20803 Alves Drive • Cupertino, CA 95014 408.257.7160 • Fax: 408.257.6948 Request for Proposals No. F061 0-34 For Operation of Public Swimming Programs at Fremont High School Pool

A. Proposer Background Information I. Northwest YMCA, a branch of the Santa Clara Valley YMCA. CA Corporation, 50l(c)(3) 2. Elaine Glissmeyer, Executive Director 20803 Alves Drive, Cupertino CA 95014

3. Business references are: Amy Chan, City of Sunnyvale Richard Lowenthal, City of Cupertino Ben Picard, Sunnyvale School District 4. Shelly Hopkins, Aquatic Director: 15 years of Aquatic Management experience in non-profit, municipality and for-profit industries. She is certified to train YMCA lifeguards and swim instructors as well as all American Red Cross Health & Safety courses. Shelly is fully responsible for the aquatics department at the Northwest YMCA in the following ways: human resource cycle, fiscal management and budgeting, direction and leadership. She is also the Santa Clara Valley Cabinet chair for all six branches whose duties include: meeting management, serving as a resource for other branches, and coordination of association-wide trainings. 5. Attached is YMCA of Santa Clara Valley Association Financial Statement. 6. We have never been the subject of a bankruptcy or insolvency proceeding. 7. For 139 years, the YMCA of Santa Clara Valley has established itself as both a leader of not-for-profit businesses and as a leader of youth and family programming. With a membership constituency base in excess of I 00,000 individuals and families -half of which are youth 18 years and younger- and governed by a core of policy and program volunteers numbering more than 2,300, the YMCA exemplifies a growing and vibrant not-for-profit, community organization. Founded in 1867, the YMCA of Santa Clara Valley is a multi-faceted, non­ profit human services organization dedicated to providing vital programs and services that help build strong kids, strong families, and strong communities.

B. Proposed Swim Program Services I. YMCA will meet the required Adult lap swim schedule. 2. The office and training space will be used as a classroom for lifeguard and swim instructors. We will use the office spaces for a Pool Manager and other lead staff. 3. We will offer a variety of aquatic progranuning, including but not limited to: YMCA swim lessons, YMCA youth swim team, youth and adult water polo classes, spring board diving, YMCA Masters swim team, family nights, lap swim, family swim, synchronized swimming classes, YMCA SPLASH week, aqua fit and deep water running classes. 4. All lifeguards will meet CA state requirements and we will adhere to the National YMCA Swim Lesson ratios as well as the Santa Clara Valley YMCA lifeguard policy of 1 :25 ratio for participants in the water. 5. Safety plan- all YMCA swim lessons will remain within National guidelines for ratio and skills taught. Beghmer levels will remain in shallow area of th~;> pool and advanced classes will be in the deeper area. Lap swim and all pool activities will be life guarded by certified staff maintaining a minimum ratio of 1 guard to 25 participants. Masters coach, water polo coach and youth swim team coaches will be certified lifeguards, however, will not be counted in the 1 :25 ratio as they will be teaching a class. Synchronized swimming and diving coaches will each have a minimum of 3 years experience in their field of expertise and will follow guidelines set by national standards. 6. We have allotted 41.5 hours per week for lap swim with a minimum of 6 Janes at each time. Swim lessons will be held in the first 4 - 5 lanes starting in the shallow are of the pool and have approximately 100 participants per session. Aqua fitness will be held in the shallow end of the pool, deep water running will be held in the 6 foot or deeper area. 7. Proposed fee schedule for programs as follows: Levell- Residents and YMCA facility members, Level2- YMCA Program Members, Level 3 -Non­ Residents. In addition, the YMCA provides financial assistance for families who are unable to pay for programs and services. The YMCA will decide if there is a need to provide resale items to the public. 8. Advertising and/or promotions will involve the City of Sunnyvale Activity Guide, along with YMCA mailers, promotional items in local newspapers and two 50 page mutli-colored YMCA brochures distributed to over 70,000 households in August and March in addition to flyers passed out at 7 different Sunnyvale school campuses. 9. We are a non-profit organization and our Metropolitan Office will be involved in all negotiations. I 0. The YMCA would like to propose a license term for a minimum of 5 years beginning on Sept. 1, 2007. 11. We have designed a pool schedule DRAFT- see attached document. The YMCA is very confident that we can build a schedule to provide a variety of programs that works to meet the needs and interests of the community while following the required lap swim schedule. We are a community based organization and plan to provide opportunities to other organizations who would like to rent the facility for their needs. 12. The YMCA has been involved in Aquatics programming for over 150 years. The YMCA is very excited to have this opportunity to provide its' wide variety of safe and quality aquatic programming to the residents of Sunnyvale.

C. Swim Building Maintenance I. General cleaning and trash duties and maintenance will be performed by on-site YMCA aquatic staff 2. Repair and replacement of all windows that are broken as a result of YMCA staff negligence will be replaced by the YMCA. 3. Supplemental janitorial duties in locker room and shower area will be performed by current YMCA service provider DCS.

D. Use and/or remodel of Swim Building and Facility At this time,the YMCA sees no need to remodel the existing swim building, facility, or additional equipment. Swim building offices will be used exclusively by the YMCA staff and participants of classes that require classroom use. Locker rooms will be available to all participants and parents Maintenance of the building interior will be maintained by both the City and the YMCA.

E. Equipment and Furnishings Existing equipment that will be required include: Lifeguard chairs, lane lines (25 yards), and disabled use chair lift. The YMCA will purchase other supplies listed in Section G. The YMCA believes that the school district and City of Sunnyvale shall be held to providing the above listed items as these are required for school progranuning.

F. Yearly Operations Summary (Business Plan) See attached document. We drafted first two years but need more research and data to solidify numbers and project further.

G. Start Up Strategy I. Required furnishings and floor coverings such as desks, rugs, and computers will be provided by the YMCA 2. Required expendable equipment - kick boards, pull buoys, pace clocks and all swim lesson equipment (barbells, float belts, toys, etc) will be purchased by the YMCA. 3. Office supplies, computer and materials will be ordered through the YMCA. 4. Shelly Hopkins, Aquatic Director, will manage the overall operation. A pool manager will manage day-to-day operations. There will always be a lifeguard on duty during YMCA program times and will remain in the required ratio of 1:25. YMCA trained swim instructors will teach all lessons and will remain the YMCA of the USA required ratios. There will be 1 pool manager at $15/hour, 25 lifeguards and swim instructors at $12/hour, 6 aquatic specialty instructors at $15/hour: Water Fitness, Masters Swimming, Youth Swim Team, Youth & Adult Water Polo, Spring Board Diving and Synchronized SV\

Business Plan for First Two Years.

Gross Revenues:

Activity Fees $ 213,552

Rentals $42,240 Miscellaneous Sales/Services $0 Year l Total Gross Revenues $255,792 Gross Operating Expenses:

Labor/Management $ 223,891 Office Supplies $500 Expendable Equipment $ 100 General Supplies $ 3,005 Maintenance/Repairs $ 11,000 Insurances and Misc. Expenses (taxes, interest, etc.) $70,124 Marketing/Publicity $4000 Return to City (rent,%, etc.) $50% of net Year_ Operating Expenses $ 312,620 Year _Net Operator Profit or (Loss) $ Unknown at this time Debt Retirement:

Year --Debt Retirement $0 YMCA of Santa Clara Valley Balance Sheet

Fund: All funds Branch: All branches Period: October 2006

Major October 2006 September 2006 October 2005 Acct Descrietion Amount Amount Amount 60 Change Funds 4,085 4,085 4,085 61 Bank Accounts 1,845,436 1,435,190 2,208,226 62 Short-Term Investments 4,108,955 3,928,039 1,716,111 63 Accounts Receivable 1,272,439 1,076,344 1,179,399 64 Pledge and Grant AIR 23,286 29,474 79,162 65 Inventories-Sale or Use 15,116 15,476 10,365 66 Prepaid Expenses 601,109 575,136 803,073 67 Long·Term Investments 3,755,795 3,755,795 3,436,758 69 Fixed Assets 20,553,952 20,553,952 21,566,925 Total Assets 32,180,173 31,373,492 31,004,105

71 Accounts Payable 474,681 584,497 480,290 72 Accrued Expenses 1,433,406 1,384,488 1,365,400 73 Other Current Liabilities 77,528 116,947 249,738 74 Deferred Support and Revenue 1,429,951 1,481,278 1,260,856 75 Long-Term Liabilities 4,520,000 4,520,000 4,995,000 76 YTD Reserves and Clearing 557,321 417,991 543,988 79 Club and Group Accounts 89,055 41,131 22,938 Total Liabilities 8,581,942 8,546,332 8,918,210

81 Current Surplus/Deficit 516,158 (254,913) (235,528) 82 Accumulated Fund Balance 23,082,073 23,082,073 22,321,423 Total Fund Balance 23,598,231 22,827,160 22,085,895

Total Liab and Fund Balance 32,180,173 31,373,492 31,004,105

121612006 12:09 PM Page 1 of 1 YMCA of Santa Clara Valley Income Statement~MonthwYTO-Annual Comparison Association Statement for Period October 2006

Fund: 01 General Operating Fund Branch: All branches consolidated Department: All departments consolidated

M

21 Salaries & Wages 1,282,748 !,272,517 (10,231) 1,160,729 (122,019) 6,063,629 6,045,762 (17,867) 5,659,1!4 (404,515) 16,951,075 22 Employee Benefits 186,334 198,529 12,195 !81,160 (5,174) 768,593 795,418 26,825 746,520 {22,073) 2,426,171 2l Payroll Taxes !60,606 l$4,871 4,265 146,249 {14,356) 768,949 776,437 7,488 121,645 (47,305) 2,183,713 24 Professional Service Fees !10,559 41,819 (62,680) 33,707 (76,852) 435,044 345,291 (89,753) 390,959 (44,085) m,247 25 Supplies 170,801 156,975 (13,826) 150,830 (19,971) 762,934 751,124 (11,810) 759,180 (3,755) 1,932,231 Telephone 13,251 14,163 912 17,945 (5,306) 100,124 103,512 3,448 100,866 742 297,759 27" Postage and Delivery Services 13,290 18,732 5,442 12,154 (1,137) 109,923 87,202 (22,721) 93,555 {16,368) 313,249

28 Occupmcy Costs 190,099 289,010 (1,089) 292,539 2,440 1,153,457 1,200,~81 41,\24 1,124,222 (29,236) 3,530,806 29 Equipment Costs 107,629 81,840 (25,789) 29,123 (78,506) 200,930 206,201 5,271 205,546 4,616 470,186 Jl Public Relations! Advertising 21,640 30,703 3,063 !5,246 {12,393) 212,691 206,162 (6.529) 127,760 (84,931} 665,124 l2 Vehicle and Transportation 36,696 29,317 (7,319} 28.003 (8,693) 324,006 338,169 14,163 330,971 6,965 674,339 Conferences and Mee1ings 28,84! 35,078 6,237 31,013 2,233 102,278 98,588 (3,690) 71,3&3 (30,895) 232,968 "JS Membership Dues 22,005 21,094 (911) 19,841 (2,164) 88,935 87,903 (1,032) 80,062 (8,873) 266,939 36 Awards and Gr.lnts 0 0 0 0 0 0 0 0 0 0 2,500 Insurance Premiums 33,221 33,219 (2) 31,706 (1,515) !32,&84 132,881 (J) 126,826 (6,058} 398,653 ")9 Miscel!anwus (1,956) 3,288 11,244 (3,103) 4,B52 31,112 13,790 {17,322} 51,698 20,586 256,653 48 Intra YMCA Expense Allocations 35,492 38,269 2,171 47,\50 l\,658 14!,968 149,.317 7,349 147,565 5,591 408,491 55 Interest/Bank Cha!ges 37,100 42,143 5,043 41,334 4,234 178,691 187,234 8,543 !95,029 16,338 527,022 58 Equipment Purchases 0 0 0 0 0 0 0 0 S,.824 8,824 0 59 Loans and Reserves 103,838 103,760 UB) 102.525 (1,313 415,353 415,820 466 410.102 (5,252 1,246, II 1

(70,747} 2,~38,212 {323,982) 11,991,50~ 11,941,452 (50,052) 11,351,826 {639,671) 33,557,837 To!nl Expen~e 2,662,194 2,591,447 "" 50,666 104,168 53,502 144,743 94,0 343,471 648,422 304,951 456,820 113,349 0

12/6/2006 12:09 PM Page1 of1 DRAFT- Northwest YMCA Fremont HS Pool Schedul1~-DRAFT September 7- December 16,2007 (14 Weeks)

I :30pm - 2:30pm I :30pm -2:30pm Arthritis Exercise Arthritis Exercise -7:45pm -7:45pm Revi:;ed 11/17/2006 Fitness Fitness Revenue Handling Procedures

Cash: o Sign member up for requested program o Receipt cash o Give a part of receipt to participant o Have another staff member verify cash and initial at bottom of receipt o Drop 2nd part of receipt and cash in a clear bag immediately into safe

Check: o Sign participant up for requested program o Receipt Check o Give a part of receipt to participant o Staple check to receipt and put in bag

Credit Card: o Sign participant up for requested program o Run credit card o Receipt credit card o Have participant sign merchant copy and give back credit card o Staple customer copy of credit card receipt to printer receipt and give to participant o Staple Merchant copy to printer receipt and put in bag

End of Shift: o Before shift ends, take time to fill out an End of Shift Report o Count up all of your checks and credit cards and fill out the End of Shift Report appropriately. o If dropped cash, write "dropped" in cash section o Have another staff member verify amounts o Drop cash bag in safe Northwest YMCA Fremont High School Monthly Family Event Calendar 2007 September Dive - In Movie Night

October Family Challenge - Halloween Fun Relays & Treats

November Family Aqua Boot Camp- fitness fun to get ready to eat turkey!

December Family Swim-A-Thon-to raise funds for Sunnyvale families in need

2008 January Ring in the New Year Swim Party

February Polar Bear Swim- hot chocolate & snacks afterwards

March Luck of the Irish- find the treasures in the pool!

April Water Safety Information- practice rescue skills and important safety tips for being safe in and around water

May Summer Fun Program Preview- Water Polo, Synchronized Swimming and Springboard Diving . June Family Splash Challenge- Creative Jumps & Dives

July Family Challenge- Synchronized swimming

August Family Challenge- Water Polo YOUNG MEN,S CHRISTIAN .ASSOCIATION OF SANTA CLARA VALLEY

JUNE 30, 2006

INDEPENDENT AUDITORS' REPORT

AND

FINANCIAL STATEMENTS ·HQQP& STRQNGuP

Consultants and Independent Anditors' Rep~Jrt

Business Advisors BOARD OF DIRECTORS YOUNG MEN'S CHRISTIAN ASSOCIATION OF SANTA CLARA VALLEY San Jose, California 1744 Sand Hill No ad

We have audited the accompanying statement of financial position of the Young Men's lvfen/o Pal'k Christian Association of Santa Clara Valley (the Association) as of June 30, 2006 aod the related :Statements of activities, functional expenses aod cash flows for the year then ended. These fmancial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year's summarized comparative information has been derived from the Association's 650.854.8700 fiscal year ended June 30, 2005 financial statements and, in our report dated September 29, 2005, we expressed an unqualified opinion on those finaocial statements. ji.1x 650.854.7666 We conducted our audit in accordance with auditing staodards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the finaocial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the finaocial position of the Young Men's Christiao Association of Santa Clara Valley as otJune 30, 2006, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

San Francisco

A-fenlo Park September 29, 2006 Young Men's Christian Association of Santa Clara Valley

Statement of Activities

Year ended June 30, 2006 (with come.arative totals for the )!.ear ended June 30, 2005)

2006 2005 Temporan1y Permanently Unrestricted Restricted Restricted Total Total Revenue: Membership dues $ ll,395~24 $ 11,395,324 $ 11,1l3,853 Child care 8,161,325 8.161.325 7,565,835 Program and camp fees 7,712,140 7,712,140 7,465,275 Fees and grants from government agencies 2,170,821 2,170,821 1,672,014 Contributions 1,543,697 $ 1,324,002 $ 3,418 2,871,117 1,941,950 Investment income 249,297 _35,251 284,548 164,532 Miscellaneous revenue 268,058 268,058 227,570 United Way allocation 4,009 73,027 77,036 122,943 Net assets released from restrictions 817,251 (817,251)

Total revenue 32,321,922 615,029 3418 32,940,369 30,273,972

Expenses: Program services: Health and We!lness 11,068,525 I 1,068,525 10,899,579 Youth, Teen, Camp and Afterschool 8,785,603 8,785,603 7,875,722 Child Care 7 400 083 7 400,083 7 021,556

Total Ero!,!;ram services 27!254,21 J 27,254dll 251796!857

Supporting services: Management and general 4,221,125 4,221,125 3,680,268 Oevelo ment 425,943 425,943 381,947

Total sueEortins services 4,647,068 4,647,068 4,062,215

Payments to the YMCA of the USA 278,440 278,440 262,290

Total cxEenscs 32!179,719 32,179,719 30,121,362

Change In Net Assets 142,203 615,029 3,418 760,650 152,610

Net Assets1 be~nning of;iear 20,790,442 997,885 533,098 221321!425 22!168,815

Net Assets, end of year $ 20,932,645 $ 1,612,914 $ 536,516 $ 23,082,075 $ 22,321,425

The accompanying notes are an integral part oftl1is statement. 3 Young Men's Christian Association of Santa Clara Valley

Statement of Cash Flows

Years ended June 30, 2006 2005

Cash Flows from Operating Activities: Change in net assets $ 760,650 $ 152,610 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 1,506,381 1,579,680 Loss on disposa1 of property and equipment 16,409 42,295 Net realized/unrealized (gain) loss on investments. (29,394) 22,361 Capital campaign pledges (550,226) (69,167) Changes in operating assets and liabilities: Pledges receivable (3,774) 58,025 Accounts receivable (234,102) 33,672 Allowance for doubtful accounts and pledges 70,650 101,733 Prepaid expenses 38,199 (49,241) Accounts payable and accrued expenses 340,797 178,278 Deferred revenue 350,402 (453,871) Deferred rent (22,302) (16,002) Net cash 2rovided by OE:eratinlk activities 2,243,690 1,580,373 Cash Flows from Investing Activities: Purchases of investments (2,902,669) (2,064,846) Proceeds from sale of investments 2,228,167 1,837,916 Increase in certificate proceeds held in trust (5,717) (4,587) Investment in insurance trust (89,838) Proceeds from sale of fixed assets 9,964 Purchase of ca2ital assets (519,781) (1,153,955) Net cash used bJ:: investing activities (1,190,036) (1,475,310) Cash Flows from Financing Activities: Payments on certificates of participation (460,000) (440,000) Ca£ital camE:ai~ contributions received 667,260 4,855 Net cash used by financing activities 207,260 (435,145) Increase (Decrease) in Cash and Cash Equivalents 1,260,914 (330,082) Cash and Cash Equivalents, beginning of year 3,613,595 3,943,677

Cash and Cash Equivalents, end of yeat $ 4,874,509 $ 3,613 595

Supplemental Information: Interest ,eaid $ 238,908 $ 256,886

The accompanying notes are an integral part of this statement. 5 Young Men's Christian Association of Santa Clara Valley

Notes To Financial Statements

Youth. Teen. Camping and Afterschool Programs

Youth programs promote an appreciation of one's own worth and build essential developmental assets. Y cuth sports focus on the fttll and equal participation of a~l: every child plays in every game. YMCA youth sports programs also help to strengthen families. Parents coach teams and attend games, often with brothers and sisters, to watch kids play. Young people participating in sports build lifelong positive attitudes, healthy habits of exercise, teamwork and learn ways to have fun as adults.

Youth sports programs value cooperation over competition, fair play over winning at any cost, good feeling and good health over a good score, and building self esteem over beating the opponent. The Association knows that with this approach everyone wins-victorious in spirit, mind, and body.

Parent/Child programs such as Y Adventure-guides, that bring fathers and children together, nurture the important bond between parents and children. Association Parent/Child programs emphasize the importance of quality time spent together, and dispels the myth that family time must be expensive and hectic.

Association teen programs provide young adults with healthy, positive role models to help them develop and enhance self-esteem, build assets and good values, including, cooperation, respect for one's body, good citizenship, and a strong work ethic. Teen activities are among the most rapidly growing YMCA programs nationwide, reflecting the growing awareness that adolescents need structure and activities, especially in the after-school hours. The Association engages teens in activities through Youth and Government, youth service clubs, Y-Achievers, Citizen School and Teen Centers, and special events.

The Association's day, resident and specialty camps provide fun for kids while they make new friends, build new skills and grow in self-reliance. Many of our Association's day, resident and family camps use natural settings to teach youth about the wonders of the world around them and how they can take good care of it. All camps teach and reinforce the YMCA's four core values: Caring, Honesty, Respect and Responsibility, while emphasizing healthy, positive character development. Our Association serves more than 18,500 people through traditional day camps, sports, arts, and specialty day camps, as well as resident and travel camps for yonth and teens, and family camps designed for the whole family.

The Association is committed to serving youth aftersch.ool. The enactment and subsequent funding of Proposition 49 presented the YMCA with the opportunity to collaborate with school districts and community organizations to provide comprehensive afterschool programs for 30 elementary and middle school campuses (with capacity for over 2,900 students). Afterschool programs, operating only on school days, focus on academic achievement, educational enrichment, and recreation. The primary outcome for the programs is increased academic achievement, as measured by the STAR exam and homework completion rates. Our staff are in partnership with the school and parents, often providing the link between the two. Locally, the YMCA of Santa Clara Valley is the largest provider of afterschool programs.

7 Young Men's Christian Association of Santa Clara Valley

Notes To Financial Statements

The Association uses the allowance method to determine uncollectible receivables. The allowance is based on pdor years' expedence and management analysis of specific promises made or amounts due. d. Investments

Investments are valued at their fair value, with realized and unrealized gains and losses reflected in the Statement of Activities. Mutual funds and equity secudties are valued at quoted market pdces. Notes, bonds, certificates of deposit and money market funds are valued at face value, which approximates fair value. e. Land, Buildings aud Eouipment

Land, buildings aud equipment are stated at cost or, if donated, at fair value at the date of the gift. Items costing less than $5,000 are charged to expense. Depreciation is computed using the straight-line method over estimated useful lives ranging from three to fifty years. Leasehold improvements are amortized over the lesser of the related lease tenn or the estimated useful lives of the related assets. f. Deferred Revenue

Income from membership dues and program registration fees is deferred and recognized over the pedods to which the dues and fees relate. g. Revenue recognition

Membership dues, child care revenue, program and camp fees and fees and grants from government agencies are recognized when the services relating to the revenues are provided.

Contributions are recognized as revenue at their fair value when the donor makes an unconditional promise to give to the Association. Donor-restdcted contdbutions are reported as increases in temporarily or permanently restdcted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestdcted net assets and reported in the Statement of Activities as net assets released from restrictions. -

Conditional promises to give are recognized only when the conditions on which they depend are snbstantially met and the promises become unconditional.

9 Young Men's Christian Association of Santa Clara Valley

Notes To Financial Statements

Note 3- Investments:

Investments, at fair value, are comprised of the following at June 30, 2006:

Certificates of deposit $2,097,000 Equity securities 1,633,948 Govermnen""f and corporate notes and bonds 946,826 Mutual funds 243,835 Money market funds 84,487

Investment income was comprised of the following for the year ended June 30, 2006:

Interest and dividends $ 283,629 Net realized losses ( 12,391) Net unrealized gains 41,785 Less: Investment fees ( 28,475)

$ 284,548

Note 4- Land, Buildings and Equipment:

At June 30, 2006, land, buildings and equipment and accumulated depreciation and amortization were as follows:

Land $ 1,765,825 Land improvements 2,631,386 Buildings and improvements 26,682,776 Furniture, equipment and vehicles 6,234,234 Leasehold improvements 419,026 Construction in progress 76,932

37,810,179 Less accumulated depreciation and amortization 17,390,912

$ 20,419 267

I I Young Men's Christian Association of Santa Clara Valley

Notes To Financial Statements

Future maturities of Certificates are as follows for the years endiog June 30:

2007 $ 475,000 2008 .Jvv,vvvI:' An f\AI"\ 2009 520,000 2010 250,000 2011 265,000 Thereafter 2,985 000

$4,995,000

Note 6- Commitments:

The Association leases a facility under a non-cancelable operatiog lease. The lease agreement expires io February 2010, with the option to renew for two additional five-year terms. Under terms of the lease, the Association is responsible for maiotaining liability and property damage iosurance and for paying certaio allocable operating expenses. The lease agreement provides for a period of free rent and scheduled rent iocreases over the term of the lease. Rent expense is being recorded on the straight-lioe method over the term of the lease. Deferred rent represents the excess of rent expense over the cash payments. Rent expense was $296,940 for the year ended June 30, 2006. Future minimum payments to be made under this lease are as follows:

Year endiog June 30, 2007 $ 303,000 2008 309,000 2009 315,000 2010 213 000

$1 140,000

ln addition, the Association has operating lease agreements for equipment, vehicles and facility sites used for child care and program events. Rent expense under such leases was $1,764,000 for the year ended June 30, 2006. Future mioimum lease payments for these leases over the next five years are not expected to change significantly from that amount.

13 Young Men's Christian Association of Santa Clara Valley

Notes To Financial Statements

Note 9- Concentration of Risk:

The Association has defined its financial instruments, which are potentially subject to credit risk as cash~ receivables and investments.

The Association regularly holds cash deposits in financial institutions in excess .of federally insured limits. Receivables are due from various individuals, foundations, and government agencies· and an allowance of approximately $52,000 exists for possible doubtful accounts. Pledges receivable are due from various individuals and are reduced by an allowance for doubtful accounts. Investments are held in various investment vehicles as described in Note 3.

Note 10- Related Party:

The Association, along with other YMCAs, is a participant in a mutual insurance company, Y -Mutual Insurance, Ltd. (Y-Mutual). Y -Mutual provides primary coverage for property, general liability, automobile, and workers' compensation. The Association's Chief Executive Officer is a member ofY-Mutual's Board of Directors, which is a non-compensated position. The Association paid general liability and workers' compensation premiums of $926,460 to Y -Mutual in the year ended June 30, 2006. Dividends and other distributions by Y -Mutual to the participants are paid at the discretion ofY-Mutual's Board of Directors. Distributions are allocated to participants based on their loss experience and original investment. Y -Mutnal did not declare a distribution for 2006.

The Association and the YMCA of the Mid-Peninsula (Mid-Pen) in conjunction with their desire to develop an alliance between the two organizations have entered into an agreement whereby the two entities will share certain finance and information technology personnel. The costs related to this agreement will be reimbursed to the Association by Mid-Pen on a monthly basis. The Association recognized income or expense reductions of approximately $371,000 related to this agreement during the year ended June 30, 2006.

Two members of the branch board of managers provided $248,607 of janitorial services and $289,050 of printing and mailing services to the branches for the year ending June 30, 2006. Other immaterial amounts of services or goods were provided to the YMCA by other branch board members.

15 Young Men's Christian Association of Santa Clara Valley

Notes To Financial Statements

Note 13- Government Contracts: . During the year ended June 30, 2006 government funding as required to be reported by certain government agreements, was as follows:

Government Agency/ Gross Program Title Award Revenue Expense

San Jose Unified School District MOU for Intramural Sports 2005-2006 $ 20,000 $ 20,002 $ 20,002 SJ High School Y -Achievers 26,939 26,939 26,939

City of San Jose Willow Glen HS- Homework Center (YMCA) for 2005 -2006 25,186 25,186 25,186 San Jose After School Level-3 Program for School Year 2005-2006 891,272 884,277 884,277 21" Century Additional Funding 87,306 87,306 87,306 21" Century Summer Extension 22,734 22,734 22,734 San Jose After School Program- Lietz & Farnham 72,824 65,482 65,482 Cornerstone-Healthy Neighbor- hoods Venture Fund Program 49,286 49,286 49,286 21" Century Community Learning 10,233 10,223 10,233 21" Century Community Learning Centers Literacy 38,000 38,000 38,000 Mayfair Grant 53,466 53,466 53,466

Santa Clara County Cornerstone (Dept. Family & Children Services) 30,000 7,379 7,379 Noontime Sports -Burbank 16,000 16,018 16,018 Nutrition Center 121,400 121,317 121,317

City of Morgan Hill Centennial Recreation Center 44,198 44,198 44,198 Senior Center 75,000 75,000 75,000

17 Young Men's Christian Association of Santa Clara Valley

Notes To Financial Statements

Government Agency/ Gross Program Title Award Revenue Expense

U.S. Dept. of Education Carol M. White Physical Education Program 145,211* 145,211 145,211

U.S. Dept. ofHea1th & Human Services Activate AMERICA 50,571 50,571 50,571

U.S. Dept. of Health & Human Services Steps Grant 7,500 5,000 5,000

$2 297,011 $2,170,821 $2,170 821

* This award is shared with the YMCA of the Mid-Peninsula. The gross amount of the award is $1,347,123. The amount that is ultimately passed through to the Association over the three years of the grant is unknown at this time.

19 ATTACHMENT D

Copy of Proposal from Santa Clara Swim Club ATTACHMENT D

SANTA CLARA SWIM CLUB

PROPOSAL FOR OPERATION OF PUBLIC SWIMMING PROGRAMSATFREMONTHIGHSCHOOLPOOL (No. F0610-34)

December 6, 2006

Santa Clara Swim Club 2625 Patricia Drive Santa Clara, California 95051 408-246-5050

John Bitter, CEO/Head Coach Terrence O'Malley, Director of Learn-to-Swim TABLE OF CONTENTS

I. HISTORY AND BACKGROUND OF CLUB II. DESCRIPTION OF SWIM PROGRAMS III. MANAGEMENT AND ADMINISTRATION IV. STARTUPSTRATEGY V. SUMMARY VI. APPENDIX

PROPOSAL NO. F0610-34 FOR OPERATION OF PUBLIC SWIMMING PROGRAMS AT FREMONT HIGH SCHOOL POOL I. History and Background of Club:

The Santa Clara Swim Club was founded in 1951 by George Haines, considered one of the finest swim coaches in the history of the sport. With a rich tradition in the history of amateur athletics, swimmers such as Donna DeVarona, Mark Spitz, Don Schollander, Chris Von Saltza, Tom Wilkens, and Pablo Morales have trained and competed for the Santa Clara. The club has produced 33 Olympic Gold medals, 12 silver, and I 0 bronze medals during its proud history. From the days of the legendary coach George Haines, to its current Head Coach John Bitter, Santa Clara has remained committed to developing champions not just in the pool, but also in all walks of life. Discipline, sportsmanship, hard work, and team involvement are stressed thl'oughout the program.

Today, Santa Clara Swim Club continues to carry on that tradition of contribution to the sport of swimming in the United States. Recognized within the Club Excellence Program sponsored by United States Swimming (Silver Medal status for the year 2006-2007), Santa Clara continues to create an environment where all levels, ages, and abilities are given an opportunity to enjoy the sport of swimming. But unlike the origins of yesterday, we also recognize the changing environment within the sport. Our roots were born in competitive swimming, but today we are a developed swim structure, which provides programs for learn-to-swim, as well as for adult fitness and competition. Our club has grown from its beginnings to become a swim fanlily of over 500 swimmers, participating in the sport through one of the many programs we offer at the George Haines International Swim Center in Santa Clara.

The business structure of the Santa Clara Swim Club is one of a nonprofit public benefit corporation organized and existing in the County of Santa Clara pursuant to the laws of the State of California. A CEO, the Head Coach, runs the daily operation of the club with the assistance of an elected volunteer Board of Directors (see attachment I., Bylaws of the Santa Clara Swim Club). The CEO, Head Coach is in charge and is responsible for all swim programs under the corporation with the assistance of a full-time staff which includes, a Business Manager, a Director of Learn-to-Swim, an Office Manager, and a staff of 10 additional full-time employees plus 15 part-time employees. The make-up of the club is to provide a full compliment of swinuning programs for all levels and ages of swinuners.

As a corporation we operate under a budget approved by the Board of Directors. Our fiscal year runs from January to December of each year. As a nonprofit corporation we are separate from the City of Santa Clara, but we are also responsible to the City of Santa Clara in terms of rental agreements, rental dues, facility upgrades, and general maintaining of city rules for a property owned by the City of Santa Clara. Our responsibilities to the City of Santa Clara are not unlike the responsibilities described in this proposal between the contractor and the City of Sunnyvale. Just as the City of Sunnyvale has certain requirements for operation, the City of Santa Clara has the same or similar requirements that we must abide by in order to maintain our presence at their

1 facility. The Head Coach serves as the sole representative between the club and the City of Santa Clara's Park and Recreation Department. References within the department include, Larry Wolfe, Head of Park and Recreation, Rick Hutchinson, Nicole Y om1g, and the maintenance department for the city, which includes Mike Gilpatrick and Jay Selig. Our working relationship between the club and City of Santa Clara has been one of mutual respect and vision as to what is best for both parties during the 55 years of existence of the club.

All members of the coaching staff are United States certified coaches and continual education is mandatory for all members of the coaching staff through United States Swimming and American Swim Coaches Association. Many of om current coaches and staff members are products of our internal training and have grown up through the club and therefore have a thorough llilderstanding of the cultme and environment of what is Santa Clara Swim Club. The Head Coach, John Bitter, has been involved in the sport of swimming for 20 years as a coach, administrator; and another 10 years as a competitive swimmer himself. A graduate of the University of Arizona, with Masters work completed in Sports Management from the University of San Francisco, Coach Bitter became the club's sixth Head Coach in August of2005. Coach Bitter served as the Associate Head Coach at Santa Clara from 1995 to 2005 and prior to that had been Head Coach at the Las Vegas Gold Swim Club, the Click Tucson Swim Club, and at Ventana Canyon Country Club in Tucson, Arizona. He has also served as an assistant coach at University of Nevada Las Vegas and at the University of Arizona.

The Santa Clara Swim Club has a rich and prestigious history in the South Bay and in the sport of swimming. We have created a swim structure that offers a multi-level swim environment that has something for all ages and levels of swimmers. From our Learn-to­ Swim Programs for children and adults, to our competitive swim program for ages 6 through college, to our Pre-Masters and Masters progran1s for adults, we have attempted to create a model for swimming excellence from birth on. Besides being a full-service swim club, we also run several major swim meets each year at our facility. This s=er will make the 40'11 year of our International Swim Meet that regularly brings the best in our sport to the area. In its history many World, American, and Foreign National records have been set while in competition at our meet. We have also run three Masters Nationals in the past 10 years, which bring approximately 1500 adult swimmers to the area to compete. Weekends such as these bring our club accolades, but also bring business and tax revenue into the city, another win-win situation for the area.

In smnmary, we are a full-service club, but also a full-service organization that understands the potential that can be gained through the Fremont High School for both sides and we look forward to having this oppmtunity to make this happen. In the following sections more detail will be given in regards to the descriptions of our programs, om fees, our management and administration and what we can bring to the Fremont pool. On behalf of the Santa Clara Swim Club, thank you for taking the time to consider our proposal.

2 II. Description of Swim Programs:

As an established swim organization, we see the running of the Fremont facility as a way to extend our programs and to capture a broader audience of potential and interested swimmers. After reading the requirements of the City of Sunnyvale for this facility, we would be fulfilling all needs requested by the City of Sunnyvale to provide a certified and profitable Learn-to-Swim program, a established and recognized Masters/Adult Fitness program, while also utilizing some of the lanes and times for our competitive program. Attached is a copy of our current swim program structures and the fees we charge (attachment II). Rather than introducing a new concept to this facility, we would expand our current program to this facility.

The club is comprised of three deprutments under the umbrella that is Santa Clara Swim Club. The first department is Learn-to-Swim orthe Santa Clara Swim School. Please see attachment III for description of this program. The second is the competitive program, which is the largest in tenns of revenue created. Please see attachment Il. for description of fees and progrrun. Finally, the Masters program is our third department under the umbrella of the club. Please see attachment IV. for description ofthis program.

The goal of each department is to create a swim environment that fosters growth and development and fun for the participant, while also maintaining a certified and recognized staffthat is both knowledgeable and friendly. It is the goal of the CEO, Head Coach, in conjunction with each area to make sure the fees established provide for a bottom line profit for the organization, but not at the expense of staff salaries and overpricing the consumer. Within the organization we also have established a scholarship program for those swim participants who truly are in need. It has long been a principle of the organization to not turn away any person who desires to be apart of our swim program due to finances.

IlL Management and Administration:

With a full-time staff of 10, plus 15 prut-time employees, we feel we are already capable of hru1dling the addition of another facility under our swim structure. If needed, we do have the ability to expand our staff within the cmrent club's budget. Staff members are hired at the discretion of the Head Coach and the Director of Learn-to-Swim. Santa Clara Swim Club provides a competitive financial package for our full-time employees. Besides offering fair and equitable salaries we also provide health care for our primary employees and opp01tunities for all family members and prut-time employees. Within our budget we also provide for general equipment upkeep and purchasing each yeru·. At our current home, we are responsible for the lane lines, pace clocks, kickboards, pull buoys, etc. and we have established a yearly inventory and purchasing of such items to always stay al1ead. All of these budgetary items are funded through our fee structure, our endowment progrrun, and through grants we have received from United States Swimming. Also we have janitorial staff that cleans the offices and team room weekiy. Giving them additional work at a satellite facility is easy to incorporate into their cunent

3 employment contract. The City of Santa Clara is responsible for the general maintenance of the pool, i.e. chemicals and for the cleaning of the locker rooms. We would be willing to discuss our need to clean the locker rooms and do not see this point as an issue if given the contract to run this facility.

The management of Santa Clara Swim Club is one that operates with the Head Coach serving as CEO and principle decision maker for all matters regarding water, and program structure. The club is also represented by a volunteer Board of Directors (see attachment I for By-Laws of club) that is responsible for fund raising activities and for volunteer commitments, and for the hiring of the CEO of the club. The board meets monthly and all board meets are open to the general membership. Board elections are held each year and are also open to all members who have been with the club for more than a year and who are current on their dues.

In expanding to another facility, the scope of the programs offered and the responsibility of the programs will still fall under the guise of the Head Coach. A separate facility or site manger would be hired either from within the current staff or from outside to ensure daily management of all programs at Fremont High School. This employee would be responsible to the Head Coach. The Head Coach and the Director of Learn-to-Swim would handle all contacts between the City of Sunnyvale and Santa Clara Swim Club, but the on-site supervisors would handle any daily or immediate issues for the Learn-to­ Swim and for the competitive and Masters programs. Our goal in running this facility is to keep the contacts to a minimum and to maintain a direct line of communication with the principle players within each organization. Too many people assun1ing responsibility will only serve to create more possibilities for misinterpretations and unneeded confusion later on.

IV. Start up Strategy

Our start up strategy at the Fremont High School site would be to bring all our current programs to the facility, while also preserving the adult usage reqnirements already specified in the proposal. During the week we would offer Masters swimming from 5:00 am to 8:00am, from 11:30 am to 1:30pm and from 6:00pm to 8:00pm. Our Learn-to­ Swim programs would run from 8:00am to 11:30 am and from 3:00pm to 7:00pm Monday through Friday. Saturday and Sunday, adult swimming would be offered from 8:00 am to 11 :00 am and on Saturdays we would offer lessons from 8:00 am to 11 :30 am. Our competitive progran1 would be offered daily from 4:00pm to 7:00pm, Monday through Friday and from 8:00 am to 11:00 am on Saturday. Additional hours for the competitive program may occnr given growth, time of year, and program expansion as needed.

In conjunction wi1h the programs offered by the club, we would be hiring an on-site supervisor at a cost to be determined, pins we would be transferring several of our curr-ent staff to the Fremont pool to run the programs offered. Our goal is to keep the initial years cost at a minimum until we gain a foothold into the community and expand the program base. In the past six years we have had a consistent 2% to 5% growth within our

4 competitive program, a steady growth within our Jesson program (see attachment III), and a constant revenue source within our Masters program. With the addition of the Pre­ Masters program we have added additional revenue to our budget. As the programs grow, additional staff would be added to supplement the projected growth patterns. In terms of percentage to profit for salaries, office supplies, etc. we would hold this at 45% to 55% of income. Adding in the additional costs of insurance, equipment fund, etc. the bottom line profit margin left would be around 30% to 3 5 %. In order for this to be a viable working facility for our club we hope to generate a 10% working profit to our club with the remainder being used as compensation to the City of Sunnyvale and to retirement of debt. To give you a summary of projected hard numbers would be random at this point, but what we can predict is percentage growth given our history in Santa Clara and the quality of programs we would be establishing in Sunnyvale. The Santa Clara Swim Club is a solvent organization with over $100,000 set aside in savings. Yearly we run the club at a minor profit, with the remainder of monies being put into savings for future growth and development. Verification of our financial solvency would be made available if a contract with our organization is considered truly viable to the City of Sunnyvale.

The major advantage we have in this area is that many of the start up items that are needed to run this facility we already maintain within our current program. Insurance, equipment fund, hired staff and paid salaries, office supplies, etc. are already within our budget. We understand that with the addition of another pool come increased costs to our club, but we feel given our current cash flow and our lack of debt and current savings, we have the fmancial backing to make the first year start up happen without any hardship to our current club structure. It will be our ability to market, promote, and establish our programs within the Fremont High School pool that will determine our ability to make this a successful win-win situation for both sides. We enter this proposal willing to take a Joss in the first year if necessary in order to get our programs into asatellite site and to expand our base of operations and opportunities. We are also in the business of running a business and we do not intend to run anything at a loss to us and we feel that what we have to offer and what we can bring in tenus of expertise, history, and program stability will create the profitable environment that we want and that the City of Sul11lyvale would like for the future of the Fremont High School pool. Finally, we would be looking for a five-year contract renewable after the third year for a term to be detennined at that time.

VI. Summary:

The Santa Clara Swim Club has a history that is long and storied in the history of the spmt of swi1m1Jing and in this valley. From our humble beginnings to what we are today, we continue to redefine our swim structure in order to provide the best programs for all swimmers, regardless of age. In looking towards our future we feel we must continue to push and expand our services outside of our current home in Santa Clara. We have reached our maximum at the International Swim Center in terms of pool utilization and the number of swimmers we run through our programs on a daily basis. We have continued to be creative as more numbers have joined our swim family, but we understand the need for the future and that need is to expand to other facilities. The pool

5 at Fremont is a beautiful complex and the agreement between the city and the school district is one of mutual respect for each and for the growth of swimming in the area in general. It is here that we feel we can be of assistance to both sides, while also helping ourselves and our future demands for growth. We are proud of the product we have created, proud of what we have developed and seen grown in the past six years and we welcome the opportunity to make these same things happen in the future with the City of Sunnyvale. In closing we feel you will see a partnership with the Santa Clara Swim Club as one that will be of mutual respect, mutual understanding, and mutual growth for both in terms of usage, but in terms of compensation. We look forward to your questions and to your critique, but we also hope that we are given the opportunity to bring what we are so proud of in Santa Clara to the Fremont High School pool in Sunnyvale.

6 APPENDIXES

PROPOSAL NO. F.0610-34 FOR OPERATION OF PUBLIC SWIMMING PROGRAMS AT FREMONT IDGH SCHOOL POOL Appendix I: Mission Statement and Club By-Laws

The Sru1ta Clrua Swim Club is in existence to produce champions in the real and full mea11ing of the word. In order to achieve this, the club has established as its goal the placement of swimmers on the United State Olympic Swim Terun.

Achievement of this goal involves having our swimmers first drerun about qualifYing for the Olympic Trials, then helping them make this drea.."11 into more than a mere desire, but into a belief of actually making the terun once they qualify for the Trials. This cru1 happen only if the program is properly designed to get it done, a11d the swinuners through dedication to the pla11 make it work. It's not a thing that happens by accident, but will happen day-to-day, group-to-group, week-to-week, level-to-level, year-to-year of consistent work that never losses sight of the goal. It's the job of the coach to offer such a program, but the responsibility of the swimmer who has the dream to do what the plan calls for, consistently.

No runount of money, private lessons, or having the right friends gets you on the United States Olympic Swin1 Tea111. In the sport of swimming the fastest two in each event on a specific certain day once every four years go, a11d the rest go home a11d watch it on television. And this is the very element that gives the swimmer a real cha11ce at becoming a chrunpion. It's not winning that is the key here, but it's self-realization that each swinuner Call attain through the process of honest effort a11d the attempt to become a11 Olympic Chrunpion.

When it's all said a11d done, a swimmer races in a la11e all by themselves, a11d win or lose, only one person gets credit or has blrune to hold for the effort. A swinuner truly sta11ds exposed to the world at the end of a race. A bad race plan, poor preparation, a bad start or turn, a11d even a terrible stroke all rest totally upon the person who just filled up that la11e in the race. The truth about the situation stares that person right in the eyes a11d really ca11't be hidden.

If the person has done it the way it was to be done, has been consistent in their efforts, has thought a11d worked up to their full real capacity, then that person will come to the realization of just how special and unique they really are. The self-realization of who a11d what they have become, a11d not a mere outcome, is really what sport is all about. Being a champion is the stretching of oneself toward full potential in a never-ending process toward being the best one can be. The beauty the sport of swimming, just like the reality oflife is that there need be no loser and everyone call win. A well-aimed a11d administered program Call be a difference maker. Sa11ta Clara Swim Club has been so designed! BYLAWS of the SANTA CLARA SWIM CLUB

Article I: NAME and CAPACITY

The name of tbis corporation shall be the SANTA ClARA SWIM CLUB, hereinafter referred to as "SCSC". SCSC is a nonprofit public benefit corporation organized and existing in the County of Santa Clara pursuant to the laws of the State of California. The Fiscal Year of the Corporation shall be January through December.

Article II: OBJECTIVES and PURPOSE

The objectives and purpose of SCSC shall be as follows:

• To provide facilities, training, and encouragement for increased proficiency in amateur swimming. ' To further the interests, education, and participation in swimming in the community. 0 To encourage and develop good sportsmanship, individual integrity, and team play in swimming. 0 To maintain membersbip with U.S. Swimming and Pacific Swimming, abiding by the rules and regulations for competitive swimming.

Article Ill: MEMBERSHIP

SECTION 1. MEMBERSffiP CATEGORIES

1. Voting membership shall include:

• The parents or legal guardians of minor age competitors in SCSC 0 Legally responsible adult competitors who regularly contribute full dues and financial obligation

This voting membersbip requires that dues, fees, and financial obligations be not more than sixty(60)days delinquent subject to review by the Board of Directors.

SECTION 2 OUALIF1CATIONS

Qualifications for membersbip includes approval of the coaching staff, acceptance of membership application by the Board, and payment of required dues, fees, and financial obligations associated with membership in sese. SECTION 3 RESIGNATION

Resignation from SCSC shall be in writing to the Treasurer stating effective date.

SECTION 4 TERMINATION of MEMBERSHIP

Loss of membership due to failure to comply with the purposes and objectives of SCSC may be reviewed by the Board if written request for review is made to the Board five (5) days prior to the next scheduled Board Meeting.

Bylaws of the Santa Clara Swim Club page ~ 1- of -8- pages Revised: 9114/01 ARTICLE IV: BOARD of DIRECTORS SECTION 1 NUMBER

The Board of Directors , hereinafter referred to as the "Board", shall consist ofthe following members, and five (5) members of the Board shall constitute a quorum at any Board meeting.

a) President b) Vice President c) Treasurer d) Secretary e) Head Coach f) Board Member at Large g) Board Member at Large h) Board Member at Large i) Board Member at Large

SECTION 2 ELECTION and TERM of OFFICE

The term of office for a member of the Board of Directors shall be two (2) years. Four (4) Directors shall be elected at the annual meeting in even numbered years, and four (4) Directors shall be elected at the annual meeting in odd numbered years. Directors may serve successive terms of office The Head Coach serves as a voting member of the Board for the duration of his/her tenure.

A slate of candidates shall be submitted by the Board to the membership. Additional nominees shall be accepted from the floor provided proper approval has been obtained from the nominee.

SECTION 3 VACANCIES

Vacancies on the Board shall be filled by appointment of the remaining Board members and shall be served until the next annual election. Resignations from the Board shall be tendered in writing. Two unexcused absences from Board meetings during a fiscal year shall be considered a written resignation.

SECTION 4 MEETINGS

Board meetings shall be held monthly; the time and place to be determined by the Board. A monthly meeting may be cancelled if not required and special meetings may e called when necessary by the President, or in his/her absence, the Vice President. Members wishing to appear before the Board must call or write any Board member at least a week prior to the scheduled meeting, who will inform the President, so that they may be placed upon the agenda.

The Board may invoke Executive Session for a period during any meeting where no regular members may attend.

Minutes shall be kept. Minutes and treasurer's report, with the noted exception of Executive Session, shall be available for review by the membership.

During the first meeting of the Board of Directors following the annual meeting and election of new Board members, the newly constituted Board shall allocate committee assignments.

General membership meetings shall be conducted according to Roberts Rules of Order.

Bylaws of the Santa Clara Swim Club page -2- of -8- pages Revised: 9/J~Ol SECTION 5 CONFLICTS of INTEREST

If business coming before the Board has a material financial effect on a Board member or a member of his/her family, that member shall notify the Board and shall not participate in voting on that issue.

In the case that SCSC has occasion to contract with a member for goods or services, the member's bid will be selected only if it is the most advantageous to sese. Non-voting membership shall include:

• Minor-age competitors in sese • Adult competitors who regularly contribute less than full dues andlor financial obligation . • Adult persons interested in the promotion of competitive aquatics who have made application to, or been extended an invitation by, the Board of Directors of SCSC.

SECTION 6 INDEMNIFICATION

1. Right of Indemnity

To the fullest extent permitted by law, SCSC shall indermlify its directors, officers, employees, and other persons described in Section 5238(a) of the California Corporation Code, including persons formerly occupying any such position, against all expenses, judgements, fmes, settlements, and other amounts actually and reasonably incurred by them in conjunction with any "proceeding" as that term is used in that Section, and including by or in the right of the corporation, by reason of the fact that the person is or was a person described in that Section. "Expenses", as used in these Bylaws, shall the same meaning as in Section 5238(a) of the California Corporation Code.

2. Approval of Indemnity

On written request to the Board by any person seeking indemnification under Section 5238(B) or 5238(c) of the California Corporations Code, the Board shall promptly determine, under Section 5238(e) of the California Corporations Code whether the applicable standard of conduct set forth in Section 5238(b) or 5238(c) has been met and, if so, the Board shall authorize inderrulification. If the Board cannot authorize indemnification because the number of directors who are parties to the proceeding with respect to which indemnification is sought prevents the formation of a quorum of Directors who are not parties to that proceeding, the Board shall promptly call a meeting of members. At that meeting, the members shall determine under Section 5238( e) of the California Corporations Code whether the applicable standard of conduct set forth· in Section 5238(b) or 5238(c) has been met and, if so, the members present at the meeting shall authorize inderrulification.

Bylaws of the Santa Clara S·wim Club page -3- of -8- pages Revised: 9/14101 ARTICLEV: DUTIES of the BOARD of DIRECTORS SECTION 1 PRIMARY DUTIES of the BOARD of DIRECTORS

The Board of Directors of SCSC shall:

1. Determine SCSC' s mission, set policies for its operations, and establish its general course from year to year. 2. Establish fiscal policy and boundaries, including budgets and fmancial controls. 3. Develop and maintain adequate financial resources for the activities of the organization. 4. Select, evaluate, and fix the tenure of the Head Coach of SCSC; prescribe any powers and duties for him/her that are consistent with law and with these Bylaws; and fix his/her compensation. 5. Develop and maintain communication links with the community. 6. Ensure that the provisions of SCSC' s charter and of pertinent law are being observed. 7. Allow discretionary expenditures of up to TWOTHOUSAND FIVE HUNDRED DOLLARS ($2500.00) authorized by the President.

SECTION 2 SCOPE of POWER

Subject to the provisions of the California Nonprofit Corporation Law and any limitations set forth in these Bylaws, the affairs of SCSC shall be managed, and all corporate powers shall be exercised, by or nuder the Board of Directors. Specifically:

1. The Board shall establish financial procedures for SCSC in accordance with appropriate accounting standards and the requirements of law. , 2. The Board may authorize any officer or agent to enter into any contract in the name of an on behalf of sese. 3. No other persons may collect funds, make contracts, incur expenses, or initiate any actions in the name of SCSC without prior approval of the Board. 4. The Board may not incur indebtedness beyond income for any purpose in the name of sese without the approval of one-half of the listed, eligible voting membership.

SECTION 3 SPECIFIC DUTIES of the BOARD of DIRECTORS

1. The Board shall develop, and publish in the first quarter of the fiscal year, an annual budget. 2. The Board shall annually review the objectives of SCSC and shall publish in the first quarter of the fiscal year its specific objectives for the year. 3. The Board shall establish, and amend as necessary, policies that clearly define the dues structure, the fund raising or financial obligations, and the service obligations of all members. Penalties, including revocation of membership, shall be established and imposed for noncompliance with these policies. 4. The Board shall conduct a formal, annual evaluation of the Head Coach, and shall cause the Head Coach to conduct similar armual appraisals of his/her coaching staff. To that end, the Head Coach shall submit, at the September meeting of the Board, his/her goals for the coming year. 5. The Board shall confer with the Head Coach in his/her decisions concerning the hire and tenure of staff or assistant coaches.

Bylaws of the Santa Clara Swim Club page -4- of -8- pages Revised: 9/14/01 6. The Board shall establish an annual budget and guidelines for the compensation of all employees of sese. 7. The Board shall annually appoint advisory Standing Committees to ensure the continuity of certain functions central to the operation of SCSC. The Board shall take appropriate steps, either through ex officio membership on the committees o:i through direct reporting structures, to ensure adequate Board overview of all Standing Committee activities. The Standing Committees shall include, but not be limited to: .

, Meets. This committee, consisting of at least one Board member and at least three regular voting m.embers with swimmers in diffetent age groups, shall be responsible for planning, coordinating, and advising the Board about meets hosted by sese. ' Membership. This committee, consisting of at least one Board member and at least three regular voting members with swimmers in different age groups, shall be responsible for, but not be limited to, developing and implementing recruitment strategies, for tracking retention at all levels in the program, and for maintaining and distributing a Member Handbook. , Finance. This committee, consisting of at least one Board memberitnd at least three regular voting members with swimmers in different age groups, shall be responsible for, but not be limited to, developing and implementing fund raising strategies such as meet advertising, corporate sponsorships, scrip program, booster club, credit program, and team store.

SECTION 4 SPECIFIC DUTIES of OFFICERS

President. Subject to such powers as are invested in the Board of Directors as a body, and subject to the control of the Board of Directors in general, the President shall supervise, direct, and control the business affairs of sese. The President shall preside at meetings of the J:loard of Directors and at general meetings of the membership. He/she shall sign and execute, in the name of SCSC, all item and instruments authorized by the Board. In addition, he/she shall have such other powers and perform such other duties as may be prescribed by the Board.

Vice President. In the absence or disability of the President, the Vice President shall perform all the duties of the President, and when so acting, shall have all the power, and be subject to all the restrictions upon the President. In addition, he/she shall have such other powers and perform such other duties as may be prescribed by the Board.

Secretary. The Secretary shall:

• Have the custody of, and care of the general corporate records of sese • Give notice of all meetings of the members and the Board of Directors as prescribed in the Bylaws • Keep a true and complete record of the proceedings of all meetings of the Board of Directors and all general meetings of the members • Publish the minutes of all meetings of the Board of Directors and of all general meetings of the members as prescribed in the Bylaws • Conduct the official correspondence of the SCSC Board of Directors

In addition, he/she shall have such other powers and perform such other duties as my be prescribed by the Board.

Bylaws of the Santa Clara Swim Club page .:5- of -8- pages Revised: 9114/01 Treasurer or Chief Financial Officer. The Treasurer shall:

• Have fiduciary responsibility for all funds of SCSC: Collect, Deposit, and Account for all funds and other valuables obtained by the club from all sources available which collect ftinds on behalf of SCSC. Assure the proper delegation of this responsibility if it becomes necessary to have others collect, deposit and account for money received by SCSC. Deposit these assets in the name of the corporation with such depositories as may be designated by the Board. ' Disburse all funds of the Corporation as instructed by the Board ' Keep and maintain a regular set of books showing all financial transactions of SCSC and reflecting at all times the true financial condition of SCSC. The books of account shall be subject to an annual audit and shall be open to inspection by the Board at any reasonable time or to any member in good· standing after five (5) days' prior written notice so requesting ' Submit financial statements to the membership and to the Board as prescribed in these Bylaws, whenever requested by the Board, and as required for the filing of tax reports 0 Issue monthly billings to the membership and collect all fees and monies due SCSC • Maintain a current roster of all members in good standing and inform the Board when members become delinquent more than one months' dues or other financial obligation to sese

In addition, he/she shall have such other powers and perform such other duties as may be prescribed by the Board.

ARTICLE VI: MEETINGS of MEMBERS

SECTION 1 ANNUAL MEEfiNG

An annual meeting of the SCSC membership shall be held in the middle to late August for the­ purpose of electing members of the Board of Directors, hearing financial reports, and for the transaction of such other business as may come before the membership. Quarterly meetings may be held to report progress toward annual goals.

SECTION 2 SPECLO,.L MEEfiNGS of the MEMBERS

·Special meetings of the SCSC membership may be called at any time by the President and/or must be call under the direction of the Board, or upon written request and statement of purpose signed by ten (10) voting members of sese. SECTION 3 WRITTEN NOTICE of MEMBERSHIP MEETINGS

All SCSC meetings of membership (annual, quarterly, or special) shall have written notification. mailed to the membership indicating purpose, time, date, and place at least ten ( 10) days prior to the meeting. The quorum for all membership meetings shall be those members present. Only matters included in the mailed notice may be voted upon.

SECTION 4 VOTING MEMBERS

Those members of SCSC eligible to vote at meetings shall be those in good standing as listed on the Treasurer's current membership roster. One vote per family. A majority of votes cast shall decide the issue. No voting by proxy shall be permitted.

Bylaws of the Santa Clara Swim Club page H6- of -8-·pages Revised: 91!4101 SECTION 5 CONDUCT of MEETINGS

The conduct of meetings shall be under the direction of the President of the Board of SCSC, or in bis/her absence, the Vice President. Complete minutes shall be kept by the Secretary. All meetings shall be conducted under Robert's Rules of Order and tbis document.

ARTICLE VII: DUTIES of the HEAD COACH The Head Coach shall:

• Manage the day-to-day operations of SCSC, and, as Program Director, develop, implement, and maintain a strong swimming program at all levels

• Have sole supervisory responsibility for the swimming activities of all competitive members

• Recruit, screen, and hire (or dismiss) all assistance coaches aud office staff consistent with practices detailed in Section 3, Paragraph 5 of these Bylaws.

0 Train, supervise, and annually review assistant coaches and office staff

0 Advise and assist the Board of Directors in its conduct of the affairs of SCSC, except that he/she shall excuse him/herself from discussions directly relating to his/her own performance and compensation

In addition, he/she shall have such other powers and perform such other duties as may be prescribed by the Board.

ARTICLE VIII: AMENDMENTS

SECTION 1 ADOPTION of BYLAWS

These Bylaws shall be adopted when approved by a two-tbirds (2/3) majority of those voting members who are present at a regular meeting and voting on the question of adoption.

SECTION 2 AMENDMENT PROPOSALS

Amendments to these Bylaws may be proposed by the Board or the general membersbip. A request for amendment by the membership must be submitted to the Board, in writing, accompanied by a petition signed by a minimum of ten (10) voting members.

SECTION 3 ADOPTION of AMENDMENTS

Adoption of amendments to the Bylaws shall be made by a two-tbirds (2/3) majority of those present casting an affirmative vote at a general membership meeting. A quorum for all membership meetings regularly called shall be those members present, provided a written notice has been given to the members ten (10) days prior to such a meeting. Amendments, if adopted, become effective immediately.

Bylaws of the Santa Clara Swim Club page -7- of -8- pages Revised: 9114101 ARTICLE IX: PROPERTY

Responsibility for the acquisition, management, and care of all SCSC equipment shall be vested in the coaching staff under the supervision and approval of the Board. The property and name of sese is irrevocably dedicated to charitable purposes and no part of the net income or assets of sese shall ever inure to the benefit of any director, officer, or member thereof, or to the benefit of any private person.

==== END OF DOCUMENT =====

Bylaws of the Santa Clara Swim Club page -8- of -8- pages Revised: 9114101 Appendix II:

SANTA CLARA SWIM CLUB NEW FEE SHCEDULES (Effective January 2007)

Stroke Drill and Evaluation Month (September): $85/month per swimmer

October to August Fee Schedule: Swim Group 1'1 Swimmer Additional Swimmers

Junior Bell $80/month $65/month

. Bell/White $100/month $75/month

Bell/Yellow $120/month $75/month

Bell/Blue $125/month $75/month

Pre-N ationa! $140/month $85/month

National $!50/month $85/month

HijSh School Varsity/ Nov. to Feb. Training $200/season

College Swimmers/ Summer Training $275/season

SCSC Registration (911----3/31) $80/yearly (4/1----8/31) $40/yearly

US Swimming Registration $50/yearly

Membership Policy:

*The Santa Clara Swim Club is a nonprofit organization. Our monthly swim dues structure provides funding for our professional coaching staff and our premier, highly competitive, year-round swim program. 1 *Swim Dues: Based on the fee schedule above, are billed on the 15tl' and due by the 30 1!. A late fee of$15 will apply to late payments of30 days, a $20 fee will apply for payments that 60 days past due, and payments that are 90 days past due a late fee of $25

1 will be applied. Families that are 60 days past due will have their team store credit suspended and will be ineligible to participate in team travel trips. *New swimmers: MUST complete and submit a "Tryout Registration" form prior to trying out and/or participating in a practice session. Forms are available in the team office. After submitting the completed fom1, new swimmers are eligible to participate in one swim practice before deciding to join the team. The first month's dues are based on the date of the first scheduled regular practice. If the first scheduled workout is prior to the 15th of the month, full monthly dues are owed. If the frrst scheduled workout is on or 11 after the l5t , half monthly dues are owed for the first month.

REGULAR SEASON TRY-OUTS ARE HELD ON A DAILY BASIS BETWEEN 4:45 PM AND 5:30PM. A TRY-OUT FORM MUST BE COMPLETED PRIOR TO EVALUATION OF ATHLETE. UPON DECISION to join AND when appropriate GROUP placement is detennined by coaching staff, ALL FORMS AND FEES MUST BE PAID IN FULL.

*All forms must be completed and turned in to Business Office prior to beginning regular sessions. Office hours are as follows: Monday: 2:00pm to 7:00pm, Tuesday through Friday: 12:00 pm to 7:00pm, and Saturday: 8:00am to 12:00 pm. *Multiple Swimmers: Families with more than t!n·ee (3) swimmers in the program will be capped at a maximum of $300 per month. If your fee schedule is less, you will pay that amount, but you will not be charged more than $300 per month if your fee schedule equals a higher total. *Monthly fees do not include aJUlual registration, Pacific Swimming Registration or aJUlual family fundraising obligation. *Membership Cards: Upon receipt of registration fonns and all necessary payments, a SCSC Membership card will be issued to each member of your swim family. This membership card is the property of Santa Clara Swinl Club. The card will be valid as long as account is paid up to date. Failure to do so can result in revoked privileges of membership to SCSC. We ask that swimmers and family members maintain the card with them when at the pool. We are issuing membership cards as a way to better enforce and control who is in the facility when we are miming workouts. *Notification Requirements: All requests for extended absences or separation from the team must be written and received in the Business Office by the 15th of the month prior to the effective date. *Leave of Absence (LOA): (i.e., vacation, high school swinnning, water polo, other sports) With prior written notification, a swimmer may be absent for one or more full calendar months and will receive a monthly LOA Credit equal to 50% of the swinmler's monthly dues. *Exceptions: With prior Wl"itten notification, Junior Bell swimmers are exempt from Leave of Absence (LOA) dues. *Extended LOA: With prior written notification, a swinnner may be absent six (6) or more calendar months and dues will be waived. Upon return, ELOA swimmers must pay any applicable fees (registration, USA-S registration), and past due balances and the cunent month's dues before resuming practice. *Medical LOA: Dues will be waived for any illness or injury if the swi.:tmner is absent for one or more calendar months. (Physician written verification required.)

2 *Important Note: Monthly dues are required of ALL swimmers; swim dues will not be prorated based upon attendance.

TRAVEL TEAMS: All out-of-town meets (travel to other Local Swim ... LSC's), the cost of transportation, lodging, and meals are the responsibility of the parents. A billing statement breaking down these costs will be mailed to those swimmers traveling and payment is due to the Business Office. Swimmers with delinquent dues will NOT be pennitted to participate in team travel trips.

Minimum Fundraising and Volunteer Requirements:

In addition to the fees outlined above, all team members have a minimum fundraising and voltmteer commitment to the club.

*Fundraising Commitment-There are currently two (2) primary fundraising activities: advertising sales for International, and Swim-a-Thou. The Board establishes armually the mininmm levels of family/swimmer pmticipation. For the swim yem· 2006/2007, the minimums are ($1 00) for ad sales for the Intemational and ($50) for the Swim-a-Thon. Families that fail to meet these minimums will be billed these mnounts.

*Volunteer Commitment: The team utilizes a "Service Hour" system to keep our nationally recognized, prestigious meets rnnning smoothly, and to facilitate daily operations. Families with swimmers in the Bell groups, Pre-National, and National have a yearly connnitrnent of 50 hours, of which 15 must be devoted to the International and 10 to Zones and/or Fall Meet. Members of the Junior Bell program have a yearly connnitment of 12 hours. Please keep the handy Volunteer Quick Guide on your refrigerator for easy reference and important dates. In addition to these Meet hours, other ways to earn hours are as follows:

Ad Campaign: Sell an ad for $1500 eam 10 hours Sell an ad for $1200 earn 9 hours Sell an ad for $1000 eam 8 hours Sell an ad for $500 eam 5 hours Sell an ad for $300 eam 3 hours

Housing for Intemational Meet: 8 hours earned per swimmer

Other volunteer opportunities will be posted on the Volunteer Board in the team room and on our web site (www.santaclm·aswimclub.org ).

IMPORTANT NOTE: Unfulfilled volunteer hours will be billed at $25 per hour at the end of the swim season in August. A fine of $75 per hour will be charged to individuals who sign up to do volunteer hours a11d fail to show up to do them without prior notice given to Volunteer Coordinator, or Volunteer Chair for that job. We need your presence,

3 skills, knowledge, great attitude, and energy not your money. So please mark your calendars today. eScrip: Another program offered through Santa Clara Swim Club is our eScrip Program. To sign up, visit www.escrip.com and register today. eScrip is a no-brainer way to fundraise and it is safe and simple. There are no receipts to turn in and e-Scrip tracks your account securely, electronically, and automatically. Our group ID# is 139607847.

4 Appendix III:

Learn to Swim Program www.santaclaraswimclub.org 408-246-5003

The Santa Clara Swim Club's Learn-To-Swim program is for pre­ competitive swimmers ages 6 months and older. The program is designed to teach each child a solid foundation of swimming fundamentals in an instructional environment, giving the student the tools to enjoy a lifetime of success in the sport of swimming. Santa Clara Swim School (SCSC) Scope of work: Detail outline

The Santa Clara Swim Club Swim School is in a position to provide a Satellite Program with the experienced and professional services listed below:

1) A Professional and Successful Learn to Swim program. 2) Management and administration of customers and staff. 3) Professional Swim Instructors

1. Professional & Successful Swim Program

History

The Santa Clara Swim School started in June 2000 at the George Haines International Swim Center with less than 200 lessons a week and a staff of 7 instructors. We had very limited pool time and had to work around a schedule.

6 years later, we average at least 1700 lessons a week topping off at 1900 a week during our busy sessions (Spring and Fall). We have been able to hold at least 80% retention of students from session to session, and our staff has grown to 50 employees.

This success has been accomplished by having a structured program which we describe as follows:

• Lessons are offered in sessions generally 10 weeks in length. • Classes are offered twice a week on Mon/Wed or Tue/Th. Once a week classes are offered on Fri or Sat. • All lessons are half an hour in length. • The Student ratio is 4/1 except for the WaterBabies classes which are 6/1. • We start with students at 6 months old up to adults. • Lessons are offered in the morning from 8:00 a.m. to 11:30 a.m. and in the afternoon from 3:00 p.m. to 7:00 p.m. Saturdays we have lessons from 8:00a.m. to 11:30 a.m. only. During winter months, in order to hold 1700 lessons a week it is indispensable that the swimming pool is indoors. At the Santa Clara Swim Center during this time we set up a "Bubble" structure that covers the entire pool where the lessons are held. For this reason the lesson program at Sunnyvale HS will only be possible during the months of April through October, which means we would be able to run swimming lessons for the Spring, Summer and Fall Sessions.

2. Management and Administration

As part of our commitment to the success of the Swim School, we have several policies and requirements.

The Swim School pool needs to have a minimum water temperature of 81 degrees, enough parking and clean up kept water and deck space. We also need locker rooms for women and men and those need to be kept clean at all times.

Management and Administration Supervisor

We have a full time Manager/Director in charge of all the administrative and registration polices which we describe as follows:

• Currently enrolled students are given the priority to keep their same time/same day for lessons during registration times. They are also given priority to change day or time and add a sibling. • Registration for new students is held on a Saturday and it is a walk in registration only. ~ There are no make ups or refunds for missed classes. • Students may withdraw from classes at any time. The full balance remaining in the session stays at the Swim School. If the student wishes to get a refund, there is a $20 administration fee. • Sessions are to be paid in full at the time of registration. • We offer financial aid based on proof of income. • Method of payment may be by check, credit cao d (Visa/Mastercard) or cash.

Deck supervisor

During lesson times, the Santa Clara Swim School provides a Deck Supervisor to greet the parents and help them with any questions they may have about iessons, instructors or concerns about the deveiopment of their children. Part of his/her responsibilities is to assist and evaluate constantly the performance of our swim instructors, as well as make sure of the safety of our students at any time.

3. Professional Swim Instructors

60"lo of our instructors have been in the Santa Clara Swim Club for more than two years. They all go though an application of employment, followed by an interview by the director of the Swim School and 3-4 weeks of training. It is mandatory to have training in the water as well as classroom clinics where the Swim School takes pride in making sure the instructor understands the method that we used and why we use it.

• We have all types of instructors: Swim instructors from other swim schools, moms, high school students, swimmers, coaches, etc. • Different Nationalities: Latino, Indian, European, Caucasian, etc. • We have instructors that speak several languages: Spanish, German, English, French, Farsi, Hebrew, Russian.

We offer our staff the opportunity to get all their certifications through the Santa Clara Swim School

• CPR (American Heart Association) • First Aid (Red Cross) • Life Guard (Fire Department). We keep our staff updated with seminars about teuching programs for children and adults as well as new techniques presented at the International Convention of Swim Schools held every year in the month of October.

Summary:

It is the goal of the Santa Clara Swim School to provide a Long term service to a Satellite Program One that will involve growing as the school grows. Responsibilities listed that now appear broad, will narrow and focus with greater emphasis on execution and results.

Business development and management is a process that only has a start date. It is product and partnership evolution that needs consistency and familiarity to be effective.

At this stage, the city is as responsible for the success of a Satellite Program School as is the Swim Program. We believe our experience will greatly benefit the city of Sunnyvale's growth to success as "we know what it takes".

The task we have outlined would require a staff in excess of 10, sese and my team can provide this service to the city of Sunnyvale. We are experienced, knowledgeable, and most of all non territorial. Your success is our success.

We will provide the staff and equipment for the lessons . .30 day termination notice for the first 6 months After six months 60 day termination notice required. Time management and cost per lesson is to be managed by the Santa Clara Swim School.

Attached you will find some graphs and summary of our other satellite program we run at HARKER HS. Our pool hours are from 5:30-7:30 Monday, Wednesday, Friday and Saturday (8:15-12:00). This program is available 30 weeks a year, during the spring, summer and fall sessions. Start up Strategy

The Swim School Learn-to-Swim Program; Will run from March through November each year. We wiii need 7 ianes starting at the shaiiow part of the pooi.

Lessons will be schedule Monday/Wednesday and Saturday And the Pre competitive program will run Tuesday/Thursday and Friday.

SCSC PROGRAMS SCSC PROGRAMS SCSC PROGRAMS SCSC PROGRAMS SCSC PROGRAMS SCSC PROGRAMS SCSC PROGRAMS SCSC PROGRAMS SCSC PROGRAMS ADULT LAP SWIMMING ADULT LAP SWIMMING ADULT LAP SWIMMING ADULT LAP SWIMMING ADULT LAP SWIMMING ADULT LAP SWIMMING PRECOMP '-' LTS PRECOMP:.. LTS PRECOMP - LTS sWIM .SCHOOL - L TS SWIM SCHOOL- LTS SWIM.S(;HQQI., -LTS SWIM SCHOOL - L TS Start up Strategy (Financial)

We will run in 3 sessions, at approximately 10 weeks long each Spring Summer Fall

Average cost per session:

Once a week $120.00 Twice a week $240.00

Lesson cost will be: $12/lesson Lesson length: t hour Teacher Student ratio: 4:1

Payroll will range 40-50"/o of Income:

Director/Supervisor Annual Salary: $60,000 Deck Supervisor Annual Salary: $ 30,000 Average payroll Instructor/hr: $15.00

Total per Session per Week

. M/W T/TH FRI SAT Lessons/week 384 150 75 192 $/week $4,608.00 $1,800 $900.00 $2,304.00 Payroll Director/week 1,250 Deck superv. 750 Staff 2,000 Total 4,000 41 "/o Lesson/Student Growth

Session Register Students Total.Lessons

Spring 05 161 1614 Summer 05 162 1275 Fall 05 161 1443 Spring06 136 1362 Summer 06 242 2155 Fall 06 202 2000

Total Lesson Growth 2500

2000

1500

1000

500

0 Spring 05 Summer 05 Fall 05 Spring 06 Summer 06 Fall 06 Series2 1614 1275 1443 1362 2155 2000

Register Students

300 250 200 150 100 50 0

Students Appendix IV.: Santa Clara Masters Swim Program www.sautaclaraswimclub.org

The Masters program at Santa Clara Swim Club is designed as a fitness program, allowing the intended swimmer an opportunity to receive quality sets aimed at pushing the individual's level of conditioning. And while our program is designed to offer optimal opportunities for increased conditioning, we also offer a Pre-Masters program that is designed to educate, teach, and encourage those adults new to sport about the joys of swimming and what it can do for your overall quality of life. CulTently we have four coaches who work directly with the Masters program. The Head Coach, John Bitter, Assistant Coach Liubov Pohilenco, Jamie Benes, and Susie Blake. Our Pre-Masters coaches are Jason York and Mario Moran. Each of these staff members has been with the club for more than three years. With a certified staff in place and the ability to expand the staff under the culTent payroll structure, we have at our disposal a quality staff that can bring to the Fremont facility an adult fitness program that will meet the needs for the City of Sunnyvale and the Fremont pool.

The structured program culTently offered at Santa Clara is as follows:

Monday though Friday: 5 am to 8 am and 6:15pm to 7:30pm Saturday: 9:30am to 11:00 am Sunday: 9:00am to 10:30 am and 4:00pm to 5:15pm

The Pre-Masters progran1 is offered at the following times:

Monday through Friday: 6:30am to 7:30am 12:00 pm to 1:00pm

The City of Santa Clara offers a weekly noontime swim that they have elected to hold on to, but if given the opportunity we would expand our current Masters program to offer day time structured swim hours.

Masters membership varies throughout the year, but the progran1 at Santa Clara has ranged in profit numbers as high as $97,896.36 for the year to as low as $54,517.29 for the year. Our general membership within the program is made up of all levels and varieties of swimmers, including competitive, open water, triathletes, and just fitness. The primaty problem we have found with our Masters program is convenience of location and hours, which is why we see the Fremont location as an excellent opportunity for us to expand our program to better meet these demands of the adult swimmer. Having the opportunity to offer our program at another facility with greater freedom of hours, gives us an opportunity to capture that interested swimmer who is more prone to swim at a facility closer to home or during hours that agree more to their daily schedule. Given cetiain restraints upon us at the International Swim Center with the multitude of programs we are attempting to run each day and the hours we are allowed to mn them, has capped our ability to expand this segment of our swim operation.

The fee structure and program paperwork has been attached to this appendix. All billing is mn through our business office, with many ways for the potential swimmer to pay their monthly, yearly dues.

Summary:

It is the goal of the Santa Clara Masters to provide a long-tenn service to a satellite location. If given the opportunity we will provide for the Fremont location an established adult fitness program, a pre-Masters learning program, and a staff that is already certified and recognized for their ability to coach and run a successful adult program. Our ability to expand outside of our current stmcture is one of endless possibilities and we welcome the chance to bring our program to the Fremont pool and to create a partnership that is truly beneficial to both sides of the proposal. Fee Schedule:

Mandatory: $50.00 ($35.00 to USMS for insurance and Pacific Masters registration; $15.00 to sese for administrative club fees)

Option l: $408.00 per year (offers flexibility to st.virn as often as you would like anrl the yearly due is a discounted rate)

Option 2: $2.16.00 per 6 months

Oj;tion 3: $45.00 per month for nrst swimmer/$35 per month for second swimmer

Option 4: (for city of Santa Clara residents only) $40 per month for t!rst swimmer/$30 per month for second swimmer

Option 5: $25.00 per month for SCSC swim team parents

Option 6: $5.00 daily drop-ins, for guests, out oftcwn USMS swimmers (pay directly to coacrJ mnning workout)

Membership Policy:

1. Santa Clara Swim Club is a nonprofit organization. Swim dues provide the high quality coaching and programs uecessary to support the overall mission of the club. 2. Swim Dues, based off the "Fee Schedule" are billed on the 15th and due by the end of every month. (Late Fee;$JO} 3. New Swimmers may have one (1) Free practice to evaluate the program. Once you commit to the program, you swim one workout in that month; you wiil be billed for that month. 4. Enrollment fonn must be complete with «11 fees/dues paid at the start of first workout attending. Forms can be mailed in, dropped off at sese office, or handed to coach running ·,;vorkout. 5. Notification r•equirements: All requests for extended absences or se~aration from the team must be written and received in the sese oHice by the 15' of the month prior to the effective date. 6. For yearly and 6-month payees, leave of absence will be given and credit will be eamed fur extended breaks from program, medical illness of injury, etc. Written notii!Gation is required and must be submitted to the :SCSC office to eam credit towards dues already paid.

Member: ______Date:------SmYia Cll·ua Swim Ouh MmsteJrs fro-gram CQlll's!'!~!!L!Etui!t_s_~@..!!·msJc !)j:i~\l'!.'"t\iL!Q.warQls t]!!!l. SC_§.'[; Masters lf'r(!g!:!!m

1) Swim in a lane where you can make the intervals. 2) Do the prescribed set, unless you have notified the coach and have infonr.ed others in the lme. 3) Whennecessa.ry, help with pulling covers before moming workouts and setting up pool foy ;,vorkout 4) In the evenings during the ±all, winter, and spring months, help with putting covers on at the conclusion of workout. 5) Clear deck of any stray water bottles, kickboarcls, puil buoys, etc. following workout. 6) Always be aware of those in your lane, in front, behind, and in the lanes adjacent to yours. 7} Circle swim at all times. 8) Workout lanes are for workout, lap lanes are for lap swimming. Lap swilruners communicate with others swimming in your lane, no side-by-side swimming, and · circle swimming only. 9) No children, swim!Tters under the age of 19 allowed during Masters workouts. 10) Do not enter the pool unless SCSC coar:h is present. 11) AU directions, rules, etc. given by SCSC coaches must be adhered to. Failure to do so c&.n result in suspension from program 12) As a member of the sese Masters you will be issued a membership card upon receipt of first payment that you should keep with you at all times. You maybe askecl by sese personal to produce membership card when entering facility, etc. ATTACHMENT E

Letter of Support from Fremont Union High School District in Support of California Sports Center ATTACHMENT E

FREMONT UNioN HIGH ScHOOL DisTRICT Cupertino, Fremon~ Homestead, Lynbrook, Monta Vista High Schools and AdultiCommunity Education Polly M. Bove, SuperintendentofSclwols

February 22, 2007

David A. Lewis Director of Parks and Recreation City of Sunnyvale 505 West Olive. Avenue, Suite 115 Sunnyvale, CA 94088

Dear Mr. Lewis,

On behalf ofFremont Union High School District, I would like to take the time to give you some feedback regarding the Joint Use Agreement that we currently have in place for the Fremont High School Swimming Pool. Since the pool's opening in 2002, the District has been pleased with the way that the pool has been operated.

We understand that the agreement that the City has with California Sports Center is currently up for renewal and that there is a possibility that there could be a change. Please know that from our point of view the School District, the City and the community have been well served by the current operator. If a change to another operator were to occur we would hope that it would be a smooth transition and we trust that the City would see to it that the District would feel no negative effect.

Sincerely,

Fremont Union High School District

Christine Mallery Director of Business and Property Services

BoARD oFTRusrEEs: Kathryn Ho, Nancy A. Newton, Barbara F. Nunes, Homer H. C. Tong, Bill Wil.son 589 West Fremont Avenue (408) 522-2200 Post Office Box F FAX (408) 245-5325 Sunnyvale, CA 94087 AN EQUAL OPPOJU'UNITY EMPLOYER http://www.fuhsd.orgl ATTACHMENT F

Revenue and Expense Detail for Operation by the City of Sunnyvale ATTACHMENT F City of Sunnyvale Recreation Division Alternative to Operate Fremont Pool Yearly Operation Summary (Business Plan)- First Year ITEM DETAILS ANNUAL AMOUNT REVENUE i $183,540 .J\.ctiYit;\r.£ees ------«•~------·--·--···-~--- "*------~•••m•~- Adult Lap SwimjAvg. 1,950 participants X 12 mos. X $4 fee -- /$93,600 ... i ______,_;_.---·--··--- ·------·--Mast~;:-s Swi~iAvg. 20 participants )Cl2-mos. X $55 fe~ !$13,200 ------'------·------Recreation Swim!Avg. 1,000 participants X 3 Mos. X $2 fee i$6,000 ------Lessons (All Age~)~ 1,380-classasX avg. ~f3 people in each--~l,;:~-sx$1-:3:5op~;'f$5-5,89o_____ !person' !.

''' 0,. oNo• . ·--~··-•••-•••~•- ·-·-•·--•"·~- -·--·~------·-··. ---·w-;;:ter E;e~ciseli, 1oo pariX~iparit~3C$E:5o-per cia-;8r~e · ·-- -$T4,85o Rentals 7,200 lane hrs@ $10 each $72,000 Miscellaneous Sales1 Service $0 TOTAL REVENUE $255,540 EXPENDITURES f I~R b§obo_~j1\l!8flf'lg"!Il.e.l.1.t. "··-·· . ... . ,_.,_,~ Staff- Supervisory* 3 pool mgrs*@ Reg. P/T Facility Attendant I! (5,408 hrs X $214,401'" $29.61 = $161,131 + Y2 of a Recreation Coordinator I!* for 1 supervision ($54,270)

Staff Part Time* · ifPano •.-lo Instructors, Coaches !$1''\4 F.37 Office Supplies Paper, pens, etc. $2,000 Expendable Equipment Lane markers, pace clocks, kick boards, hand buoys, etc. $2,000

General Supplies Cleaning supplies, first aid supplies, etc. $2,000 Maintenance/Repairs (Swim Internal Service Charges to Cover Maintenance Provided $38,886 Building) by City Facilities Management Insurances and Misc. Expenses nja (taxes, interest, etc.) Marketing/Publicity Ads, flyers, posters, additional pages in Activity Guide, etc. $6,000

Utilities & Trash PG&E&Trash $11,000 IT Internal Service Charges No IT rental rate in first year. Purchase of 4 phones, 3 $0 computers and 1 cash drawer part of start-up. Return to City (rent, %, etc) nja Total G!:oss Operating Expenses** $410,924 Net Operator Profit or (Loss)-- Year 1** 1$155 384 *Job studies have not been done for these positions so the actual cost may be higher or lower than this estimate.

**There will also be an unknown amount of additional cost for internal Recreation Division support (registration, publicity, etc) and to other departments (Finance, HR, OCA, OCM) for additional services required for self operation of the FHS Pool. These services include reports, deposits, audits, hiring, payroll, developing and reviewing policies procedures, risk & insurance, budget preparation and reporting, (etc).

Note: There will also be one time start up costs of approximately $43,000. City of Sunnyvale Recreation Division Alternative to Operate Fremont Pool Yearly Operation Summary {Business Plan)- Second Year ITEM I DETAILS I ANNUAL REVENUE Activity Fees $209,550

Rentals 7,200 lane hrs @ $10 each $72,000 Miscellaneous Sales/ Service $0 TOTAL REVENUE $281,550 TOTAL INFLATED REVENUE $289,997 EXPENDITURES Labor /Management $351,222 ' Staff- Supervisory* 13 pool mgrs*@ Reg. P/T Facility Attendant II (5,408 hrs Xi: 14,401 l$29.61 = $161,131 + 'h of a Recreation Coordinator II* for ii supervision ($54,270) Staff- Part Time* -·--·!Lifeguarct~-;J,.;structors, 'c"o;,;h-;;- · ":~c·:·::l::·n;:··g;::s;::-:1·-·-·l Office Supplies Paper pens etc. $2,000 Expendable Equipment Lane markers, pace clocks, kick boards, hand buoys, etc. $2,000

General Supplies Cleaning supplies, first aid supplies, etc. $2,000 Maintenance/Repairs (Swim Internal Service Charges to Cover Maintenance Provided $38,886 Building) by City Facilities Management Insurances and Misc. Expenses nfa (taxes, interest, etc.)

Marketing/ Publicity Ads, flyers, posters, additional pages in Activity Guide, etc. $6,000

Utilities & Trash PG&E&Trash $11,000 IT Internal Service Charges IT rental rate for 4 phones, 3 computers and 1 cash $9,426 drawer Return to City (rent, %, etc) nfa Total Gross Operating Expenses** $422,534 Total Inflated Gross Operating Expenses** $435,210 Net Operator Profit or {Loss) --Year 2** {$145,214) '

Note: 3% annual inflation factor applied for each year past the base year. City of Sunnyvale Recreation Division Alternative to Operate Fremont Pool Yearly Operation Summary (Business Plan)- Third Year ITEM I DETAILS ANNUAL REVENUE Activity Fees $224,400

1--~- ... ____ ... ---... - ...... ------~-----~-JE"':~_o_n ______------~------. --~-- .. ------· ------· ------. -~--L~------Water Exercisel1,100 participants X $13.50 per class fee $14,850 Rentals 7,200 lane hrs@ $10 each $72,000 Miscellaneous Sales I Service $0 TOTAL REVENUE $296,400 TOTAL INFLATED REVENUE $314,451 EXPENDITURES Labor /Management $355,589 Staff- Supervisory* )3 pool mgrs*@ Reg. PfT Facility Attendant II (5,408 hrs X :$214,401 l$29. 1 = $161,131 + 'h of a Recreation Coordinator II* for

'"'""' > Instructors, Coaches $141,188 Office Supplies Paper, Pens, etc. Expendable Equipment Lane markers, pace clocks, kick boards, hand buoys, etc. $2,000

General Supplies Cleaning supplies, first aid supplies, etc. $2,000 Maintenance/Repairs (Swim Internal Service Charges to Cover Maintenance Provided $38,886 Building) by City Facilities Management Insurances and Misc. Expenses nfa (taxes, interest, etc.)

Marketing/ Publicity Ads, flyers, posters, additional pages in Activity Guide, etc. $6,000

Utilities & Trash PG&E&Trash $11,000 IT Internal Service Charges IT rental rate for 4 phones, 3 computers and 1 cash $9,426 drawer Return to City (rent, %, etc) nfa Total Gross Operating Expenses** $426,901 Total Inflated Gross Operating Expenses** $452,899 Net Operator Profit or (Loss) --Year 3** (111138,449)

Note: 3% annual inflation factor applied for each year past the base year. City of Sunnyvale Recreation Division Alternative to Operate Fremont Pool Yearly Operation Summary (Business Plan) - Fourth Year ITEM I DETAILS I ANNUAL REVENUE l Activity Fees ! $234,090 -······~ ------AdultL;;pswimiAvg:--2-;-6oop;;;:-ticipant;-X:12 m;;-~~-x $4_fe_e______T$l24)oo ···-

--···-----~----·-~ MMtersS;im!Avg:3o partiZipantsX:12ffi;~: x $55-fee ········---- j$19,8oa··----

"""""" ··· ------R"~;:;;:-;;·;;i;;;;:;··s-;;;:;;-1 Avg;:·J:,iooJ);;~ti~i:P;;m-t"~xTM:-;;_-x:· $2·r~~------T$6;-6oo-~····· ------Le-;sons (All Ages)! i,680 ,;iasses Xa;;g_ of 3'peopl~-in each cla~s X $13~50 perj$68,040_____ )person l "-""~"-""-~·-~ """ --·--··~····--· .. ···--·~·-··-·_j"_""" ·--···-·-··· ·· · ····-·-w;;;:~;: E:~ercisei1,1oo :Partici:P;;;:;i~ x$i'3.5o:Perclas-;;· Tee $14,850 Rentals 7,200 lane hrs@ $10 each $72,000 Miscellaneous Sales f Service $0 TOTAL REVENUE $306,090 TOTAL INFLATED REVENUE $334,473 EXPENDITURES Labor /Management $357,773

Staff- Supervisory* ~~of ool mgrs*@ Reg. P/T Facility Attendant II (5,408 hrs X $214,401 9 1 = $161, 131 + 'h of a Recreation Coordinator II* for !'<1]~ '>C>UH ($54,270) --···· Staff- Part Time* Life,-mmls, Instructors, Coaches $143,372 Office Supplies Paper pens, etc. $2 000 Expendable Equipment Lane markers, pace clocks, kick boards, hand buoys, etc. $2,000

General Supplies Cleaning supplies, first aid supplies, etc. $2,000 Maintenance/Repairs (Swim Internal Service Charges to Cover Maintenance Provided $38,886 Building) by City Facilities Management Insurances and Misc. Expenses nja (taxes, interest, etc.)

Marketing/ Publicity Ads, flyers, posters, additional pages in Activity Guide, etc. $6,000

Utilities & Trash PG&E&Trash $11,000 IT Intern a! Service Charges IT rental rate for 4 phones, 3 computers and 1 cash . $9,426 drawer Return to City (rent, %, etc) nja Total Gross Operating Expenses** $429,085 Total Inflated Gross Operating Expenses** $468,873 Net Operator Profit or (Loss) -- Year 4** (111134,400)

Note: 3% annual inflation factor applied for each year past the base year. City of Sunnyvale Recreation Division Alternative to Operate Fremont Pool Yearly Operation Summary (Business Plan)· Fifth Year ITEM I DETAILS I ANNUAL REVENUE Activity Fees $234,090 --··----·-----~-~------, ------~------~----+------·-- Adult Lap Swim!Avg, 2,600 participants X 12 mos. X $4 fee i$124,800 --~--~~---·-.,~··---·---~-~---·-;::;---;-j~-M--•~""'""-•----·~--~ ... -~.---·----·--•••-·-~~---~···--~--~-"----··-~---·•• Masters Swim!Avg, 30 participants X 12 mos. X $55 fee /$19,800 ------R:~;;-;~ation -s:;;;iill!A:;;g:J.~Toor;;;-rticipant'sx 3 M'o~-:-x$2-r~;;------·r$6;6oo· ------Le~sons(AllAgeSJi 1 ,680-classes x:l~iot3"j)eopie'in each elMs X $13.'5o perj$68:040 )person ---~-UN ______,_, .. , -·-----~·-""""'""''"--~.J.,,., ...... ,_,,,_,_,,,,,_,,,.,...... ,,,._, ___,,_H,.,,, •.__,,,,_,.,,, '""'"""'"'""'"'"'"""''"'•••••~·~-·~·-•"-"'""'-·-· "'""""''""'""'"'"""''-"'"-··~"-· .• ··-A'·-··-----·-' .. ··· ·-····------.. --. Water Exercise!1,100 participants X $13.50 per class fee i $14,850 Rentals 7,200 lane hrs@ $10 each $72,000 Miscellaneous Sales j Service $0 TOTAL REVENUE . $306,090 TOTAL INFLATED REVENUE $344,507 EXPENDITURES Labor j Management $349,038 ------···-·------~--~--··------··--~------~<-·--~~·--- Staff- Supervisory* !3 pool mgrs*@ Reg, P /T Facility Attendant II (5,408 hrs X $214,40 c·--- 1 /$29.61 = $161,131 + /2 of a Recreation Coordinator II* for :supervision ($54,270) ------·-·-·---··--~----L---·---·--••o·------•••-----·--·-•••-·• ·------Staff- Part Time* lLifeguards, Instructors, Coaches $134,637 Office Supplies Paper, pens etc. $2 000 Expendable Equipment Lane markers, pace clocks, kick boards, hand buoys, etc. $2,000

. General Supplies Cleaning supplies, first aid supplies, etc. $2,000 Maintenance/Repairs (Swim Internal Service Charges to Cover Maintenance Provided $38,886 Building) by City Facilities Management Insurances and Misc. Expenses nja (taxes, interest, etc.)

Marketing/ Publicity Ads, flyers, posters, additional pages in Activity Guide, etc. $6,000

Utilities & Trash PG&E&Trash $11 000 IT Internal Service Charges IT rental rate for 4 phones, 3 computers and 1 cash $9,426 drawer Return to City (rent, %, etc) nja Total Gross Operating Expenses** $420,350 Total Inflated Gross Operating Expenses** $473,108 Net Operator Profit or (Loss) .. Year 5** ($128,601)

Note: 3% annual inflation factor applied for each year past the base year. ATTACHMENT G

Sample Schedule Assuming Operation by the City of Sunnyvale ATTACHMENT G

Sample Schedule Assuming Operation by City of Sunnyvale (Proposal Four- Sunnyvale Recreation Division)

Adult Lap Swimming (Year Round- 3 672 hours) ' Monday- Friday 6:00am to 8:00am Monday- Friday 11 :30am to 1:30pm Monday- Friday 6:00pm to 8:00pm Saturday & Sunday 8:00am to 11 :OOam

Masters Swimming (Year Round- 765 hours) Monday - Friday 6:15-7:30 AM Monday- Friday 11:45-1:00 PM Tuesday & Thursday 6:30-7:45 PM Saturday 8:15-9:30 AM

Water Exercise (Year Round- 829 hours) Monday- Friday 6:15-7:30 AM Monday -Friday 11:45-1:00 PM Tuesday & Thursday 6:30-7:45 PM Saturday 8:00-9:30 AM

Instruction (Summer Months- 231 hou rs) Monday- Friday 9:00-11:45AM Monday - Friday 1:30- 3:00PM Saturday 9:00-11:30 AM

I ns t rue f 1on (S pnng. & Fa II Mon th s- 120 hours) Monday - Friday 9:30-11:00 AM Monday- Friday 3:00- 6:00 PM Saturday 9:30-11:00 AM

Recreation Swim (Summer Months -100 hours) Monday- Friday 12:00-1:30 PM Saturday 12:00-2:30 PM

Group Rentals (Rentals by lane - 1,83 6*) Monday- Friday 6:00 -9:00AM Monday- Friday 3:00-10:00 PM Saturday 8AM-9 PM Sunday 8AM-9 PM ¥T1me available for rental use Note: The times that activities are offered are listed, however it is the number oflanes available that dictate how many people can participate in that activity. ATTACHMENT H

Estimated Full Cost to City of Fremont High School Pool (Programmatic and Pool Maintenance) Estimated Full Cost to City of Fremont High School Pool (Programmatic and Pool Maintenance) ATTACHMENT H

Proposal 1: Cal Proposal2: Proposal 3: Santa Clara Sports Center Northwest YMCA Swim Team Alternative 4: City Recreation Division Revenue*l Expense*l Net

.s"""' t) Start-Up Costs n/a nja n/a ($43,000)l ($43,000) s 0 Year 1 $48,000 $0 $48,000 to 49,500 $255,540: ($410,924)[ ($155,384) ~S:J._

~;;,!lYear 2 $48,000 $0 $48,000 to 57, 750 $289,997! ($435,210)l ($145,214) 2 g Year 3 $48,000 unknown to $314,451 j ($452,899)! ($138,449) o.- ~ $48,000 70,000 " Year 4 $51,000 unknown $48,000 to 75,000 $334,473 j ($468,873)! ($134,400) "' Year 5 $51,000 unknown $48,000 to 79,000 $344,507! ($473,108)\ ($128,601) 5YearTotal $246,000 unknown $240,000 to $331,250 $1,538,967 j ($2,241,014)l ($702,047) il)1l.,)4-',.....,-+-' ($111,885) ($111,885) ($111,885) 1 ($111,885)1 ($111,885) tti (.) ~ g .5:l Year 1 , , ~~s~~ rnr.::vr:n·,.... Year 2 ($115,241 ($115,241) ($115,241) l ($115,241)l ($115,241) _c.BE Cl ($118,699) ($118,699) ($118,699) ($118,699) ..... r.:: b.0-:8 Year 3 j ($118,699Jj u ·a <>:-~ ($122,260) ($122,260) ($122,260) ($122,260Jj ($122,260) '-< ;;;; >-. " Year4 .2....,~ +' 0 <: Year 5 ($125,927) ($125,927) ($125,927) ! ($125,927Jj ($125,927) 15 ::J u 5Year Total ($594,012) ($594,012) ($594,012) ($594,012)! ($594,012)

~ $41,600 $41,600 $41,600 $41,6001 so+> Year 1 1 $41,600 ~ 5 Year 2 $49,900 $49,900 $49,900 $49,900\ 1 $49,900' " s Year3 $49,900 $49,900 $49,900 $49,900j $49,900 ;:i<: "0 "-o $49,900 $49,900 $49,900 $49,900[ i) <: Year 4 $49,900! l>:r'ii Year 5 $49,900 $49,900 $49,900 $49,900\ $49,900 5YearTotal $241,200 $241,200 $241,200 $241200j ,1 $241,200 ii:§8J18 Year 1 ($22,285) ($!0,285) ($70,285) $297,140 i ($565,809)/ $2,345,976 (.)a=~~

Comparison of Proposals for Provision of Public Swim Programs and Yearly Operations of Fremont High School Pool. - Summary of Business Plan Proposals ATTACHMENT I

Comparison of Proposals for Provision of Public Swim Programs FHS Pool Yearly Operations Business Plan Summary

Business Plan for Year 1 of 5 Year Agreement

Proposal1: I Proposal 2: i Proposal 3: I Alternative 4: California Sports J Northwest YMCA 1 Santa Clara Swim I City Recreation

=--;:;:------+~-G@!ltllL L .. .L.... ~ ...... G.!!I.P...... L. .... J!ivi!!i!m Gross Revenues: i ' I --.m~-~··-··-.. --~'-"~''~'"'··--~••·•~·•-·• ·-••~""· """--~-, .. ·~-oMn .... -.,-,, __, '"'"'''"' "- r ,,,, ,.. "'-~'"'' """"'"• ". ., ... ,_.,, _,.,L,,- , __,.,,,,._,,,._,, , ,_.,.,,_.,,,...... , -•-•~..,, .,, , , ,, ,,,,-0 ActivityFees . . . $352,593 1 $213,5521 . $200,0001 $183,540

~~~~~~s~:·:~: :: :·:::..··:··::· w • ~=···...... ·:.·.:.·.~64;22i5r.·· . :· }!?:?~or::·j4~:iJaoT ...... ····•~72~69<5: Miscellaneous Sales/Services $2,000 i $0 : $0 , $0

~~:r·=·T~!:I·=~~~~~~~~!nu~~: .: : ...... ~~!~;s~~J.·. w~:]255,792:; ...... j24~;~~~~:r· ]~~~ 15,411

Gross Operating Expenses: ' : 1 Caf:iortManagement ·· . ········· · .. . $284,6661 ···$223,891/ . ·$115,ooor· $349,038 $2;ooo · $2:aoo $2,666

~3i3;88§ nla ~~~~:-~~;,~~·~;;:=;::~]IL~~;~~lf_=;iif.. $6,6()if ····· nia Return to City (rent, %, etc.) ...... $48,000 1 50% of neV $48,0001

~~;~~~~:-,~~$··==·•...~•== ····~···.••:.::·• .:···=·=:.::·····~·····•••• ••.. : ::···•••·:...Jf~~~I..... ···=~: ..~}:/:...... ·:::.:::~;:J...... ••.••• ~j; Utilities Paidto City ...... $10,000 1 $0 · . $0 : . . $11,000 tfl~t~rfi~J§efiilqi)·c;liaif!~T-~·~·: ···.·:···.·:~:.....·:·~.: ·.···:·.~:.: ..·... ·. . ..:.: ..ni~T· ...... f1'~]:.··.···· ...... :.. ··.·.~7<>1=: ....··· : : ]a

Yt~t~~1 !c:>~IJI(;!()SS QpllriJtiiiQ ~:,Jpen'!IIIS...... w ...... •.. ~416!400i ...... ~~1~,62~ .. L...... ~~~3,0~~J ...... ~41 0,~24 Year 1 Net Operator Profit or (Loss) $2,193 I ($56,828) $15,000 1 ($155,384) - . ··-··------~-~---- ..-~------·-----·-·· ---·------·-····------.------~~------····------..·------~--.,------····· ---. -~------·--~------·--- ...... --r··· .. ------·-- oelltRetirement: ··+

Yearifofaf566t'Reiiremer1C ...... r11~1· n/a ----~-·-" - ---~----·---~------...... ! .ACiaitiaiiaT!JarmeliTiociiy(hi%·c;rtJeiiliccimeJ. $1,500 ! £~ ill: ! .... Comparison of Proposals for Provision of Public Swim Programs FHS Pool Yearly Operations Business Plan Summary

Business Plan for Year 2 of 5 Year Agreement

Proposal1: , Proposal 2: , Proposal 3: Alternative 4: California Sports l Northwest YMCA l Santa Clara Swim I City Recreation I '

~g@!!!~L, 1~----- ,,,.... Q!YlL . , .....!::liYliiQn ... Gross Revenues: flcifvTiy ··········· Fees· ...... ·-· $3'7o;223l - ··$213);521· $3oo:ooo1 '$269,556'' R:eiitais ·- .,.. ··-··- -~-·~-----'"'--·------~--y. ------. - ----~------.-;-- "--~------···-··-·-·· ------f-·- · - · · $66,000! $42,240! $48,000I -$72:666 .., ... ' ...... , ...... , ...•...... , ~·· ························! ... $6 Miscellaneous '·' . saiesiser\ilces 2 suhioiai:DnJiiiiaiea'Grass'Reveliues g~?al······ ·· ~?a!· ·· ~?ar$281,550 vear2fotafGrossR:eveilues* ········ ~$438;2231 ,... '$255,7921 $348,oooT ~~89,~97 "'"'"" """~'""W""'--

§ro~s~e>i>:er~~ri!i'~ii:e~~:e~=:-- ······-:····~·-.: -: ~·-~~.J==~- ~: :~· : I:·•··•••••···:~ · .·: : I ··...... Labor/Management $298,200I $223,891: $165,0001 $351,222 ~-w-·--•·••-•••·-• •-- ·-••••--•'•·••••-••·->.· •'-m«- • "•••·•••···- ••-••-·•-•"-m••••-- - '''''"- •••·- • •- -•·•••-••<••- •••• 'jW .,.. - •• ·--- -- "''""-'"''' --• ·,-.,,,, ·• ~,,,,_,"·''''" ___ , __ ,._(,"' - , ,_., • •••• •• Office Supplies . . . $3,000I .. $500 l . . $10,0001 . ... $2,000 Expenda6ieEquipment - · ·· $2;oooT .. $Toor ·········· $5,ooo1 ·$2:o0o Generaisuppfies...... $3:a66T . $3,665T ... $5,666f $2,666 Maintenance/Repairs · ...... $26;6661 .. $1'i,oooT · ········.$16,6oo l $38,886

~fF~:~~:~:U~~~~sc.:·Exp~n~~;,·~~xe~;Jnf~r~sC~icT·· .....$j~~g~~~········ ······•·$~~:6~~~1 ··· · ~~~:~~n·· ..$ .~6~ 6 R:etl!rn.tociiy(reilC%, etcY $4s:aoof · so% ofne!i~ $4s:6ooi · ·········nla ...... -...... ····~· ..··•·· ...... ~~...... ··~...... , ...... ~-.~...... I Professional fees $5,250! n/aJ n/a) · --.~-" ··--~-~-.. ·------' - ----~------·------·"t-- "''' ______,__ ,-~-----' ------··-·; Telephone $1,8001 n/a! n/a! n/a ,,,.,."'' ''''"''""'''"----~--~•••---•-.''"m'''"'' ••- '' ••~•••• "' ,.,.,.,,, o- "''~' • • ''"""''" <->"Wm<'< - • ••m o- ,,,,,_ m -• • - '""'" ••-• •-••Moo••-' '''i''"''' ,, ••~•',, .; __,,, ",, ,., -""''' Utilities Paid to City $10, 000 1 $0 : $0 i ·$11,6oo "''''''' '''"•-•••••··'-''"·-•·-·••••~"'''''""''''••'''''"'• ._,,., "''' .,,,,,,,M - '-·•••-••-•-"' •••-•••• •• , , '""'" ... -· o •••·•· '''''·''"m , ,, ""'<•W , ~~"••• ••~o.<-_. .__._,(_"'~'" IT Internal Service Charges n/a I n/a I n/a' ·~"$9,426 sZiblatilTJn71lrla7eCiGrass·o'PeraHniti{Jefises····•······~ ····· ·• •• ············.···•········.. n7a/ $422,534 ·0 · · - · ·· n7af· n/a:··· ·· vear2 fotaiGrosso!ieratili9E:xiien&e&· · •••• • ··~·$433,3oo 1 ······ $312,62o~- $283,ooo1 ···· $435,210 '>• .--~·~"''~"".,,,,,_,~,~-~---~--- ~-"~•~·•••• <-~~m- -·~•••m~•--···-c-•-~'"'**""""'·•··-.~•••<>< •-•••' m-. .__.._,~ «"< •~••••<>•• <-•~«--•~•----•--~•->•--.- ,., "" , -.'"'-~m-.,,_,~-•-•r-w•--•>'"* - -"-"' '"""•••-••- ''"""''"~"'"'•--.,--, (~J45~14) _ye~2.Net Oflf~f!!to.r!'r()fi!O':(I,.<>IlllL . . . 0 . • ~

'''"'"'"'""0"~" ~··· ....······ ······· ······· ...... ·········· nhil.... ·· ·ntai vearifo!afi5et:ifReHremenT...... · n/a[ -~------~------·--·-----·----·------. ------~------~-<------~------·-----.- ""'"l'------,,------.-~------______,____ - Ji.(J(JitfonaT/Jaymentio ciiy (15%oi iVerincome r r · ··········· $9:?so

*Revenue and Expense totals include annual inflation factor of 3% beginning in Year 2. Comparison of Proposals for Provision of Public Swim Programs FHS Pool Yearly Operations Business Plan Summary

Business Plan for Year 3 of 5 Year Agreement

Proposal1: i Proposal 2: I Proposal 3:- j Alternative 4: California Sports [ Northwest YMCA : Santa Clara Swim I City Recreation

=---:::------J ·~···~···g!!!!~!!L...L . g!!!l? ...... L.. Qjyj§iQ!! . Gross Revenues: ! I 1 .ActiiiHyFees~· . . . . . - ...... ······· ..$388,7:34 r- ········. T ...... $4oo;oo()T ... . $224,466 1 14 ~!~~r~n~i~i~~~~~~~~~~~n~~~•=~·=.:.~~·····.. ·--~~·~~n:~~t1 · ::···•••·=~·=~V ······ ...... •..$:::~::: vear31'otaiGrossR.eveiiues .. ... ····· $458;7341 r· $448,oooT . $314,451 ~=:::::=·:·:.~:·~==:.:·:::: :: .:·:·:·.::.: ::.:...... ::: =·•I ' .... ················ ·..1.·· . . ·:··::··········· · Gross Operating Expenses: , , i

1

~~~:i~~;:~-:~~~-~~~~-~J~~fji ::;=~f[{ftt•••~:]lj Insurances and Misc. Expenses (taxes, interest, etc.) $36,383 ! : $20,000 i n/a f0:~~1<:eti69i~~§llc]!X·=:·· ::: ··· ::::: ::················· ······=· ... j~,-~o<)J ~ :·. ::·:··.. ~?i:J;<:i<:i<:il= ···········~~.<)<)a Return to City (rent, %, etc.) $48,000 I . $48,000 i n/a '' ,,_--, ·-••-·"~"-'o~..o"'""'"TH•~•·~"''"- ~--·-•ww•••••-•~•,,,., ·o -~•••~"~'"">-•-••••-m•--· ,.,,. _ .. ,,~••• •···~--• •'•••-"""-" ..-••·•~~~-~.,.. , --~~ 0 ,.~.-·""'""' ••-~ ,,,_,,.. ,,,_.-.-~--"

1

[~~~t~7l~~~;~~~~~~~~~~,n;~;~e~~~;:~~·:..~..·· ·::-::~_=·~ :~~~Sl:.·~::=···· ··· ··-·····~f~)·· ·.. -~·· •.$:iH~r

-- -~----.--.•.---~--~.,~--. ---- •• ,.- --- ••-..-.~------~~------~-.------"~"'··-·-----~------· .,, ..,,_,.,...... --~------.-. ------' """" ------___, __il ______-.------_.. ., •. , ... -----

YIIil~~.!~!ill~r~t;ll_()pllrl!!illJI l§lcel!ll!lllll ··-·- ...... ~<1~.1., ..~

Yeilr3tl.fi1t()pl!rat~!l'r~fitC)rJL.o,!ls). ~~~~8,44,~) ...... $7131~j $11~,000!...... olliitR.eiireme.nt:··· ;·------vear3.i'oiaiBe6fRetiremenf niai. i17aJ ····r ...,...... •..•.... ···•········ -+------...... A.C!CiitJonaiiJarmeiitia·cfir(2o%oftlletiiicomeT· ! $22,000 !

*Revenue and Expense totals include annual inflation factor of 3% beginning in Year 2. Comparison of Proposals for Provision of Public Swim Programs FHS Pool Yearly Operations Business Plan Summary

Business Plan for Year 4 of 5 Year Agreement

Proposal1: i Proposal2: . Proposal 3: 'I Alternative 4: California Sports [ Northwest YMCA ' Santa Clara Swim , City Recreation

...!<~!l~L.. . : ...... !ross"Reveliues n/a; • n/al $306,090 Year 4TotafGross.Reven.ues ...... ~J~o~.m: ~J~9~,o~o:...... J3~4,473 -- -~-•><«------'"~~~------~""''"~-«--'"""'"~""'~ .. ' . ' ·e:;r()~~~C>~~~tiri~]liii~~~tlll:·:·::·~·· :.: : ,- .. ····.·.·~·=· ::··:·..~: ·· :j ······························ ·I ·························· _,______------I ······ ...... $245,0.60 l Labor/Management ...... $345,204 1 $357,773 I ················$16;6o6·j $2,666 ...... $s:6oorm···· "0 ·ii>2:oaif ~!~~~i[~~~~ip~eir••:·.=::~===•=··=::. .,::.= ~:· .. ··t~~~rl :2"' '$2;666 <:3<3D<3!al§.uppli~~ ...... E~QQJ r := =}5,992./ e ' $10,000 ' ]~~.~~~ a. n/a fu~~~g;~~~n~e~i:~~.~xp~6~~ct~l<~~.:il£i~r:~~C~tt;I: · ..... :J~~J~l] ------~ $6,QQO ~![~~T;~lyb~~~*··· ··· ·· ·$~~: 0 %."etc.)·········· ·· ·· ········· ················ ·· · ·· ~ggI [=··~..~~· ·J!u~~~r··· 0 n/a J5raressionaiieiis...... ·-········· ~ ...... ··· ....~ $6;67if1 ··· ·· z , nia• n/a - --~-~------··------~-----"'"----~------" ···----'"------""--~---'""'""------~------·------~--..---- i ~-~------·-----1------~------Telephone ...... nla' n/a $1 ,900 ' ...... Vi;iiiiesf5aiCiiociiy· .···~········m····. -·mm·····~··· ·...... $1{656] ·········$ol· . - $11,666 ··········· ······· ...... niai m ·•m••••· $9;426 TiiiiteriiaiseiVice7j!Jarges · · ····· · ....m .. m. •• ·····~···- • .. • iiial .. subioiili:TiiiiiinatedGross~o/ieraiiiif:J.E:x/ienses········· ···· ····•···...•.·.·... · · nia1 $~~~.o~in· Ii~~:~~l ~;~Efk:I:~~r~~fl~~:i~ri~~~f=~~··..~..··· ·········· ··•··•·•····===~~i~~~~~·l $13s;oooi · ($134;4oo) , .. ,,,,,,,, .. ·,m•,,,·••••••••• ,. ~~ •••••'•••••·'"••••••••·• oel:itketiremeiii:······ lm•••••••••••••••m•••m•l ··· ·· ········ Y"eilr4 fotafbeilt"R€itiremenT · ···n!at· · n/a

.. L.. ------~.,.,.-----~-~~-]-~--- A.CICiitianai}JaymentiociiY.·r2o%atilietTiicomeY····· ' $27,ooo I

*Revenue and Expense totals include annual inflationfactor of 3% beginning in Year 2. Comparison of Proposals for Provision of Public Swim Programs FHS Pool Yearly Operations Business Plan Summary

Business Plan for Year 5 of5 Year Agreement

Proposal1: · Proposal 2: , Proposal 3: Alternative 4: California Sports ! Northwest YMCA i Santa Clara Swim City Recreation 1 g!.mt!!r . " L__ " ...... ••..••••.••.. .J;?!!!IL ...... Di'l!!lioP Gross Revenues: Activity Fees $472,508 ' $500,000 $234,090

R:eniafs~ $76,066. $48,060 $7?,006 tViisC:eiiaiieous.saiesiseiVices $2,000 $0 $0 siii:!ioli:il:··UlifiifiiilecTGrossRevenues n/a nia $306,090 vears'totafGro&sRevenues* ·············· ·· ····· ········ ... $550,508 $548,000 $344,507 ~--• ----~~>••>•«• --~··~-- •••--><-.•oe -• --~~~•••'o·-~~~"" •• -~-~"'""'

Grosso~eratiii9Exilenses: $380,587 ' $275;ooo $349,038 ~~t%~~~~~nl~~!·_::··==···· $3,150 i $1o:ooo $2,ooo Expendable Equipment $3,500 . "0 $5,000 $2,000 1 Q) i3enerafsiJi>rilies~··· ~- · ·· · ·· · $4;6oo "0-,; . $5,000 $2,000 KilaiiiieiiiinceiRepairs· · ···· · ······················· $23,881 e $10,000 $38,886 (l_ liisura~nces.aiid.Kilisc.Expenses(!axes,·i;;!eresfeicT····$44,223 $20,000 n/a

1 . $6,500 "' $20,000 $6,000 ~~;t~ro~~~b~~~*..~~~~~~·;::.::·-=:::·:·:·.·· · ::·: ·· 0-"' $54,000 0 $48,000 n/a ?ir!kssiana/lees ··· ························ ··· $6,700 z n/a n/a feler"harie·········· ········ ······· ····· ···· ················· ···· · · ·· · · . $2,000. n/a n/a Utiiiiies?aicTioCiiY··· ················ ········ $12,000 I $o $11,000 TtiliternaTseiVJCecliariles· · ·········· ·· n/a n/a $9,426 sublaiaFTJninfiaieciGrossoiieraiiniJE:x/Jenses n/ai n/a $420,350 Year:s·TataiGro&soiieratiniiExpen&es•···················· $540,541 i $393,000 $473,108 .... $9,967 $155;ooo ($128,601) y~~r=sf:i~t.Q:!i~!~!Cif~!Ci:fl:if:irJ~Ci~L.::. :::.:...

·oebt Retirement:"······································ -·······················

"- .•. -----·"------~------·-····-·---.------·------·---- Year 5 Total Debt Retirement n/a n/a n/a

ACiCiilionaT/JaVmenTioc7iV(2o%ai7venn<::aine5..· $31,000

*Revenue and Expense totals include annual inflation factor of 3% beginning in Year 2. FFP Anticipated Usage CSC Actual Usage in 2006*

4,000 lap swims/mo 2,065 lap swims/mo

200 member masters swim team 22 member masters swim team

1 , 152 more sessions of aquatic lessons 2,737 more sessions of aquatic lessons (2520 swim, 151 pre-comp, 66 polo) (ave 228 users/mo) 7, 500 more uses for recreation 3,994 uses for recreation

Increase swim team size to 250 or 10,000 lane hrs/yr Increased swim team size to 160 and uses 9,000 lane hrs/yr (75 dependant on the continued use of SMS)

Lap swim participant hours is 4,797/mo ave or 57,564 annually. Factor is 2 or 3 Participant hrs lessons:11,364. (8,608 swim, 1,172 pre-comp, 1,584 polo}. F,actor is 1 Open swim participant hours is 7,988 annually Factor is 2 Masters swim participant hours is 9,630 annually. Factor is 1.5

* From usage pdf from Dave Peterson, March 23rd, 2007

Received via phone from Dave Peterson an revised via emails (D. Peterson, R Silva, N Steward) SUNN is guaranteed 9,000 lane hours a year Estimated that the other swim teams run about 5,000 lane hours a year • Newark's Flying Fish group is 67% SV resident • Sunnyvale's Panda group is 31% SV resident * Cupertino's Dolphin group is 17% SV resident

Verbal info from SUNN, (Eiko and Lisa), at Commission meeting, March 14th They pay $3 per lane hour They are guaranteed 9,000 lane hours a year They have raised dues by 50% since the pool opened. They have increased the roster from around 90 (before the pool opened) to 160 today. Contingencies for approval of CSC contract at Fremont Pool 2007

!) Contractor may never eliminate (or reduce to almost nothing) one of the 'Big Five' swim functions. lap swimming (already guaranteed) masters swimming swim team lessons (min open/recreational swim

2) Contractor must improve usage in both masters swimming and open swimming. Masters swimming, increase to 50 members Increase open swimming usage to 6,000 users (especially on the weekends)

3) Contractor must increase offerings in the water exercise area.

4) Pricing must always favor the drop in/punch card payment method compared to a monthly pay plan. (Monthly plan should be cost effective only for those who use pool more than 3X week.)

5) Regarding swim team rentals, contractor must allow Sunnyvale-based groups to have priority over non-Sunnyvale-based groups AND groups with a majority of Sunnyvale residents over those who do not contain a majority of Sunnyvale members (less than 50% Sunnyvale residents) if they desire the same Jane hour.

6) Maintenance and housekeeping of the public shower facility (the bathhouse) should receive a 'very good' rating by participants. All repairs must always be completed within six months.

City Council should review ALL rates and ALL rate increases always.

Six month review, all contingencies met or pay penalty.