Title
Recommendation to Authorize the Interim City Manager, or Designee, to Enter into a Joint Use Agreement with Alameda Unified School District (AUSD) for the Operation and Maintenance of the District Swimming Pools, Including an Addendum Regarding Renovation of the Emma Hood Swim Center at Alameda High School, and Authorize the Interim City Manager, or Designee, to Disburse Payment of $7,500,000 to AUSD; and
Adoption of Resolution Amending the Recreation and Parks Department General Fund Operating Budget for Fiscal Year 2022-23 to Increase Operating Expenditures for Pool Maintenance; and
Adoption of Resolution Amending the Fiscal Year 2022-23 Budget Authorizing an Appropriation of $7,500,000 Unassigned Residual General Fund Balance to Capital Improvement Project C55800 (Emma Hood Pool Repairs) and Increasing Expenditures in Said Project by $7,500,000 to Fund 50% of the Emma Hood Swim Center Improvements. (Recreation 10051400) [Not heard September 6, 2022]
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The Alameda Unified School District (AUSD) and the City jointly operate the Emma Hood Swim Center (at Alameda High School) and Encinal Swim Center (at Encinal High School). There are four swimming pools total between the two sites. Since 2011, the City and AUSE have been parties to a series of joint use agreements which sets forth the maintenance, operations and use of those four pools. The current joint use agreement was entered into in 2016.
Staff is now bringing a new Joint Use Agreement (JUA) to the City Council. Under the new proposed JUA, AUSD will continue to be responsible for overseeing maintenance while the City oversees scheduling of user groups. Each agency will fund 50% of operations and maintenance costs. It includes City access to program activities at both Emma Hood Swim Center and Encinal High School Swim Center during regular school hours.
The proposed JUA also includes an Addendum regarding the renovation of the Emma Hood Swim Center. This renovation is required due to the age and poor condition of the Emma Hood Swim Center. The Addendum outlines terms for the design, funding and construction of this funded project which will be jointly funded by the City and AUSD.
Staff is seeking authorization for the Interim City Manager, or designee, to enter into the proposed JUA, including authorization to disburse payments of up to $7.5 million for the renovation of the Emma Hood Swim Center. Staff is also bringing two budget resolutions to the City Council for its consideration. The first budget resolution proposes increasing Recreation and Parks Department expenditures for the City’s 50% share of annual operating expenses. The second budget resolution appropriates $7,500,000, which is 50% of the total project cost for the Emma Hood Swim Center improvement project, from the General Fund Unassigned Residual Fund Balance to Capital Improvement Project C55800 (Emma Hood Pool Repairs) per the City Council direction on June 21, 2022 as part of the FY 2022-23 Mid-Cycle Budget adoption.
BACKGROUND
Pursuant to a series of joint use agreements between the City and AUSD dating back to 2011, the two agencies have shared maintenance and operation costs for the four pools at Emma Hood Swim Center and Encinal Swim Center. Since 2016, AUSD has been responsible for overseeing the maintenance of both swim centers under the joint use agreements.
Emma Hood and Encinal Swim Centers serve the high school swimming, water polo and diving teams, numerous youth and adult community aquatics teams and are the only locations for Alameda Recreation and Parks Department (ARPD) swim lessons, recreation swim and other aquatic programming. Under the current joint use agreement, the City and community organizations utilize an average of 65.5% of the schedule and the AUSD high schools utilize an average of 34.5% of the time. These hours have remained fairly consistent over the years with the City’s share increasing as the City now offers programs during the school day at Emma Hood Swim Center and soon will add programs during the school day at Encinal High School.
Due to its age and condition, the County of Alameda is requiring that the Emma Hood Swim Center undergo a substantial renovation. Under the Addendum to the proposed JUA, the City and AUSD would both commit to share the costs - not to exceed $7.5 million per agency - of a full renovation of the Emma Hood Swim Center. The City included $7.5 million as part of the FY 2022-23 Mid-Cycle budget approval. The voters approved AUSD’s Measure B bond which included this funding for AUSD. AUSD anticipates starting the community input process for the renovation project early this fall.
DISCUSSION
The proposed JUA is consistent with the prior joint use agreements between the two agencies. The key terms include the following:
• The term is five years, expiring on June 30, 2027.
• The agencies will share equally the utility costs.
• AUSD will be responsible for performing all maintenance, including custodial, equipment and pool services, with the two agencies sharing those costs.
• Within 90 days of the execution of the JUA, AUSD and City staff will develop and implement a Preventative Maintenance Plan to be enforced for the entire term. AUSD will notify the City of planned preventative maintenance work and collaborate on a schedule that accommodates both agencies.
• AUSD will communicate when maintenance is planned that requires pool closure and will coordinate with the City on the best times to do so. The City will communicate all pertinent information from AUSD regarding use limitations with all community groups.
• Advanced written approval is required for any maintenance, repair or capital equipment project with a cost greater than $15,000. If there is an emergency repair required to address a health and safety condition, AUSD shall request City approval but may proceed with the repair if that approval is not received within 24 hours.
• City will continue to schedule user groups and retain all associated fees. Uses may not be scheduled later than 9:30pm with 30-minutes allowed for groups to vacate the premises. City will also be required to secure the facilities. If either of these are not met then additional fees could be assessed on the City.
• Scheduling will be determined in April and December of each year through a meeting of AUSD and City staff to jointly create and approve a use schedule. Once this schedule is approved, it cannot be changed without prior 30-day notification. Each party will make a reasonable attempt to accommodate requests, however once the schedule is complete, any changes will be at the sole discretion of the party with the schedule use for that requested time period. The exception is post-season championship games and related practices for high school aquatics teams which only require a one-week notification to the City.
• City will have access to AUSD wireless internet services and storage space.
• A security plan for Encinal High School Swim Center has been approved by the Division of State Architect. Therefore, once this construction is completed by AUSD, as funded by the City, then ARPD will have daytime access to this swim center during the week. The JUA acknowledges that if daytime use is impacting classroom instruction then both parties will meet to address and accommodate those issues. The City also agreed to not use whistles, bullhorns or amplified music during school instruction hours.
As noted above, the proposed JUA also contains an Addendum regarding the design, funding and construction of the Emma Hood Swim Center. These terms were included as an Addendum to the standard joint use agreement so that the renovation project could move forward expeditiously. The Alameda County Department of Environmental Health is closing the Emma Hood Swim Center in December 2023. Given this upcoming deadline, it is imperative for the City and AUSD to set forth their agreement both to split the costs of construction (not to exceed $7.5 million per agency) and for the requirements of the new swim center.
The key terms of the Addendum include the following:
• Both the City and AUSD will contribute up to $7.5 million for the construction costs.
• Guidelines for the design, construction and funding reimbursement schedule of Emma Hood Swim Center.
• The City and AUSD have equal design approval with the understanding that it must meet California Interscholastic (CIF) - North Coast Section requirements for aquatic facility design.
• The City will be included in all meetings with the project design team.
• AUSD will host community input meetings and the City is responsible to outreach to the broader community to ensure all residents are invited to these meetings.
• The City will be included and have equal budget approval in major decisions that impact the project budget.
• AUSD will bill the City in the amount of $2.5 million each time it reaches $5 million in total project expenditures.
• AUSD is responsible to manage the project construction.
• The City will participate in decisions during construction that may impact use and operations.
• Both agencies will work diligently and cooperatively to begin construction by March 30, 2024. This schedule includes the required permit process by the Department of the State Architect which generally takes up to 12 months.
The term of the proposed JUA is June 30, 2027. Assuming that the construction of the Emma Hood Swim Center is completed prior to June 30, 2027, however, the City and AUSD have agreed to enter into a new joint use agreement that will take into account the features of the newly constructed Emma Hood Swim Center. Given the long history between the City and AUSD sharing costs and usage, staff predicts that the cost sharing and usage between the two agencies will remain as they have been to date, with each agency bearing 50% of the operations and maintenance costs. Under the current schedule, the City and community groups utilize 65.5% of the four pools and the high schools utilize 34.5%. Once the City is able to use Encinal High School Swim Center during daytime school hours, the City usage will increase. These usage hours have remained fairly consisted and are not anticipated to change significantly once the renovated Emma Hood Swim Center opens.
Once a new joint use agreement for the Emma Hood Swim Center is proposed, the City Council will have the opportunity to approve the terms at that time.
At this time, Staff is requesting that the City Council approve the proposed new JUA and its Addendum, as well as the two related budget resolutions. Staff is also requesting that the City Council authorize the Interim City Manager, or designee, to disburse payments of up to $7.5 million for the renovation for the Emma Hood Swim Center.
ALTERNATIVES
• Approve the proposed Joint Use Agreement with AUSD for the operation and maintenance of the Alameda Unified School District Swim Centers, which includes an Addendum requiring the City to pay up to $7.5 million for the renovation of the Emma Hood Swim Center; approve the two budget resolutions; and authorize the Interim City Manager to disburse up to $7.5 million to AUSD for the renovation of the Emma Hood Swim Center
• Do not approve the proposed Joint Use Agreement or two budget resolutions and provide direction to staff on changes to the Joint Use Agreement with AUSD, including the Addendum for the renovation of the Emma Hood Swim Center.
FINANCIAL IMPACT
Funds are appropriated for the payment of the JUA in the ARPD FY 2022-23 Mid-Cycle budget in the amount of $80,000. At the time of budget development, it was anticipated that the Emma Hood swim center would be closed by the Alameda County Department of Environmental Health. That closure was extended to December 2023, thus additional funds are now required to fully fund the anticipated cost of $180,000 for the City’s 50% cost share to operate and maintain both swim centers for FY 2022-23.
In FY 2021-22, the Recreation Fund (280), which housed ARPD’s recreation expenditures and revenues budget, was closed. Revenues and expenditures from recreation activities are now housed in the General Fund. Unaudited FY end 2021-22 General Fund revenues and expenditures reflect that ARPD exceeded its revenue forecast in excess of $500,000, while ARPD expenditures are projected to end the FY approximately $692,000 under budget. These excess funds were returned to the General Fund balance at the end of FY 2021-22 and are available to be allocated for the additional cost required to fully fund 50% of the cost, in the amount of $100,000, to operate and maintain the Swim Centers in FY 2022-23.
As reflected in the City’s FY 2020-21 Annual Comprehensive Financial Report, the City had $39.40 million in Residual Unassigned General Fund Balance available for appropriation. As part of the FY 2022-23 Budget conversation, the City Council directed staff to set aside $7,500,000 of these funds to fund 50% of the Emma Hood Swim Pool Repairs project. Adoption of the attached Resolution would appropriate these funds to the Capital Improvement Project C55800 (Emma Hood Pool) from the General Fund Unassigned Residual Fund Balance.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15301 of CEQA Guidelines (Operation of Existing Facilities).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the Interim City Manager, or designee, to enter into a Joint Use Agreement with Alameda Unified School District (AUSD) for the operation and maintenance of the district swimming pools, including an addendum regarding renovation of the Emma Hood Swim Center at Alameda High School, and authorize the Interim City Manager, or designee, to disburse payment of $7,500,000 to AUSD; and
Adopt the resolution amending the General Fund Operating Budget for Fiscal Years 2021-23 to increase operating expenditures for pool maintenance; and
Adopt the resolution amending the Fiscal Year 2022-23 budget authorizing an appropriation of $7,500,000 unassigned residual General Fund balance to Capital Improvement Project C55800 (Emma Hood Pool Repairs) and increasing expenditures in said project by $7,500,000 to fund 50% of the Emma Hood Swim Center Improvements.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Joint Use Agreement
cc: Nancy Bronstein, Interim City Manager