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HomeMy WebLinkAboutItem 18 - Aquatics Programs Management and Operation Services Parks, Recreation, and Community Services www.santa-ana.org/parks Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report January 18, 2022 TOPIC: Aquatics Programs Management and Operation Services AGENDA TITLE: Amendment Agreement with Blueray Management, LLC for Management and Operation Services of the Aquatics Programs at City Pools (General and Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the agreement with Blueray Management, LLC for the operation services of the aquatics program at City pools to include maintenance of the pools and increase the compensation by $263,060, for an annual amount not to exceed $432,527, which includes a 10% contingency, for the final term of their agreement from February 1, 2022 through January 31, 2023 and a total agreement amount not to exceed $771,461 over the total term of the agreement from February 1, 2020 through January 31, 2023, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On January 21, 2020, the City Council approved an agreement with Blueray Management, LLC for the management and operation services of the aquatics programs at City pools. To improve efficiencies by adding pool maintenance services to the existing agreement with Blueway, the City is requesting an amendment to the agreement to include those additional services at a cost of $65,940 per year. Additionally, staff recommends an amendment to the agreement with Blueray to accommodate the increase in insurance-related costs for Blueray to operate and manage the program. Blueray’s original insurance provider can no longer provide the City-required insurance coverage. As a result, Blueray requested price quotes from other insurance companies and discovered that the premium amount was dramatically more (approximately $158,000 more) than was included in their original budget to operate and manage the aquatics program. It is no longer financially feasible for Blueray to continue with the final renewal option of the agreement and comply with the insurance requirements. The City desires to continue the aquatics program with Blueray as the operator of the pools. Therefore, in order for the arrangement to be financially feasible and allow Blueray to continue with the Aquatics Programs Management and Operation Services January 18, 2022 Page 2 2 3 7 8 last renewal option of the agreement, staff recommends an increase in compensation for this final term. An overall 10% contingency has also been included in the annual compensation amount to provide for any unforeseen service request for the management or maintenance of the pools. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and available in the following account for the current fiscal year and will be budgeted in the following account for next fiscal year: Fiscal Year Accounting Unit-Account # Fund Description Accounting Unit, Account Description Amount FY 21-22 01213020-62300 Cannabis Public Benefit Fund PRCSA Youth Services- Contractual Services Professional $84,733.50 FY 21-22 01113230-62300 General Fund Recreation & Community Services-Contractual Services Professional $157,800.00 FY 21-22 01113250-62320 General Fund Park Facilities-Buildings & Ground Maintenance & Repair $54,475.00 FY 22-23 01213020-62300 Cannabis Public Benefit Fund PRCSA Youth Services- Contractual Services Professional $84,733.50 FY 22-23 01113250-62320 General Fund Park Facilities-Buildings & Ground Maintenance & Repair $50,785.00 TOTAL $432,527.00 EXHIBIT(S) 1. Agreement Amendment Submitted By: Lisa Rudloff, Executive Dir. of Parks, Recreation and Community Services Approved By: Kristine Ridge, City Manager Page 1 of 4 FIRST AMENDMENT TO AGREEMENT WITH BLUERAY MANAGEMENT, LLC TO OPERATE AND MANAGE ALL CITY POOLS THIS FIRST AMENDMENT to the above-referenced agreement is entered into on January 18, 2022, by and between Blueray Management, LLC, a California company (“Provider”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”). RECITALS A.The parties entered into Agreement No. A-2020-007 (“Agreement”) dated January 21, 2020, to provide public pool management, including staffing, training, safety (lifeguard) services. B.On November 30, 2020, the parties exercised the first of two (2) optional one-year extensions of the Agreement through January 20, 2022 (A-2020-007-01). The Agreement is current and in- effect. C.The parties wish to amend the Agreement to exercise the final extension term of the Agreement; increase the Scope of Work for operation services of the aquatics program at city pools to include maintenance of the pools; increase the overall compensation for this Agreement to provide compensation for the increased services for maintenance, and increased insurance costs for provision of services from the Agreement and the increased scope of services; amend the payment schedule related to the maintenance services; and amend the Agreement to provide revised insurance requirements for inclusion of the increased scope and for services provided from the original Agreement. The Parties therefore agree: 1.Section 1, Scope of Work, is hereby amended to increase the scope of services, as detailed in the attached Exhibit A-1 to this First Amendment, for operation services of the aquatics program at city pools to include maintenance of the pools. 2.Section 2.b, Compensation, is hereby amended to increase the annual amount for this final extended term, to cover costs from the Agreement, the increased scope of services, and insurance costs, as detailed below, and shall not exceed $432,527. This annual not-to-exceed amount for this extended term includes a 10% contingency for services required at the sole discretion of the City. The total sum to be expended under this Agreement shall not exceed $771,461. The annual amount shall be paid out in monthly installments, as detailed in Exhibit A-2 to this First Amendment. 3.Section 3, Term, is amended to extend the term of the Agreement until January 20, 2023. 4.Section 5, Insurance, is amended to remove the original insurance requirements and replace said insurance requirements as follows: Prior to undertaking performance of work under this Agreement, Provider shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a.Minimum Scope and Limit of Insurance 1.Commercial General Liability Insurance. Provider shall maintain commercial general liability insurance, which shall include, but not be limited to, protection Exhibit 1 Exhibit 1 Exhibit 1 Exhibit 1 Exhibit 1 Exhibit 1 Exhibit 1 Exhibit 1 Exhibit 1 Exhibit 1 Exhibit 1