TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Mark Leyman, Parks and Recreation Director
Melissa McCollum, Senior Recreation Manager
Gilbert Gamboa, Acting City Engineer
Michael Codron, Interim Community Development Director
Adam Finestone, Planning Manager
Patricia Matson, Senior Management Analyst
SUBJECT:Title
Consideration of an Update and Next Steps Regarding the Existing Memorandum of Understanding with The Bay Club Company to Construct and Operate an Aquatic Facility with the City (No Budget Impact) (City Manager Mirzakhanian).
(Estimated Time: 1 Hr.)
DISCUSS AND PROVIDE DIRECTION
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council receive the update, discuss the matter, and provide direction to staff on whether the City should continue pursuing the potential construction and operation of an aquatic facility by The Bay Club Company (Bay Club) on City-owned property currently leased to Bay Club.
FISCAL IMPLICATIONS:
Fiscal impacts are currently limited to the staff time dedicated to evaluating the proposed project. Future fiscal impacts will be identified and bought to City Council for consideration, as needed, if the project continues to move forward.
BACKGROUND:
Begg Pool
The City operates the Begg Pool Facility as part of a long-standing Joint Use Agreement with the Manhattan Beach Unified School District (MBUSD), the owner of the parcel. Originally built in the 1950s, Begg Pool is twenty-five yards long, six lanes wide, and approximately four-feet deep. The pool hosts a variety of recreation programs and classes, including swim lessons, lap swimming, swim team, water aerobics, summer camp programs, water safety classes, recreational water play, and required Manhattan Beach Middle School physical education swim classes (Begg Pool Summer Season Schedule Attachment).
As identified at previous City Council meetings, the Begg Pool Facility is reaching the end of its useful life and, due to age and level of deterioration, requires significant upgrades including: pool, mechanical and electrical equipment, plumbing, locker room, accessibility, safety, etc.
To help inform the City’s decisions related to Begg Pool, including whether to repair or replace the facility, True North Research conducted a statistically valid aquatics survey in 2022 and HMC Architects completed a Begg Pool Modernization Study (Study) in 2024. Key community input included requests for more water to serve community needs (larger pool/pools), upgraded restroom facilities and locker rooms, increased pool availability, increased recreation programming, increased seating and shade to support aquatics activities, and solutions for traffic, site access, and parking concerns. Additionally, the Study provided two potential options to update Begg Pool either via renovation of the existing shallow pool and support buildings or through the design of a new aquatics center to include one 25-yard shallow pool, one 35-meter competition pool, and support buildings at the site. Both options included new parking, an access drive, and a pedestrian ramp. The estimated cost for these options were identified in 2024 as $27.9 million (renovation) and $40.3 million (new aquatics center) with proposed add-ons, that included Peck Avenue corridor improvements for expanded parking, expanded use of solar, and phased construction, at an additional cost of up to $8.9 million. The projected annual operating costs were identified as $800,000 for the renovation option and $1.8 million for the new aquatics center option. Current operating costs for Begg Pool are approximately $650,000 annually. The survey and modernization study are linked below:
Link to the True North 2022 Aquatics Center Survey: https://www.manhattanbeach.gov/home/showpublisheddocument/54643/638520757263170000
Link to the HMC Architects 2024 Begg Pool Modernization Study: https://manhattanbeach.legistar.com/View.ashx?M=F&ID=12894289&GUID=22C5489B-57F3-40F7-ADB7-6EF106AB4392
Findings from the 2022 survey indicated most respondents were either very interested (35%) somewhat interested (21%) or slightly interested (11%) in a new Aquatics Center. Approximately one-quarter (25%) of respondents professed no interest and the remainder were either unsure (6%) or unwilling to answer the question. While interest in a new Aquatics Center was found to be widespread, the same interest did not exist in terms of support for strategies to fund one. The strategy with the most support (71%) was to increase fees paid by those who use City aquatics and recreation facilities and programs to raise funds for a new center. There was little support for strategies such as increasing local property taxes or local sales tax. While supported by a majority of respondents, raising fees for users and programs alone would not cover the costs identified in the Begg Pool Modernization Study that are needed to complete the full renovations or construct a new center.
In the 2022 survey, participants were also asked to select all public or club pools that members of their household use. The most common response was Begg Pool (41% of respondents), followed by the Bay Club Pool (25%), El Segundo/Wiseburn Aquatics Center (21%), the Club Pool/Manhattan Country Club Pool (20%), Mira Costa High School Pool (14%), Hawthorne Pool (10%), Redondo Union High School Aquatic Center (6%), Badminton Club Pool (5%), Torrance Aquatics Center (4%), and Torrance Victor E Benstead Plunge (3%). Five of the pools on this list are available to the public. Rates for lap and recreational swim at the five public pools currently range from $3 to $7 per use.
Council Direction and Related Actions
On May 7, 2024, City Council received and filed the report regarding the Begg Pool Modernization Study findings and conceptual designs. City Council directed staff to:
1. Direction: Hire a consultant to conduct a poll regarding community priorities for funding Begg Pool upgrades.
Action: A statistically valid survey was conducted by True North Research in June 2024 as part of research related to a possible ballot measure establishing a one-half cent sales tax to fund general city services, such as repairing/upgrading community facilities. Begg Pool did not rank as highly as other possible upgrades/funding priorities in the community survey.
Link to the True North Research 2024 Sales Tax Feasibility Survey:
https://manhattanbeach.legistar.com/View.ashx?M=F&ID=13127637&GUID=2EBB71E7-208D-4C43-8196-F9A14EF6B750
2. Direction: Continue discussions with Bay Club regarding their proposal for a new community pool.
Action: A MOU with Bay Club was executed and is discussed below.
3. Direction: Research the costs associated with ensuring the pool remains safe for the next two to three years.
Action: Staff has met with MBUSD to obtain repair quotes for the top three priorities: plumbing repairs, perimeter concrete pool deck and drainage repairs, and replacing the perimeter site fencing in order to extend the useful life of Begg Pool and keep aquatics programs in operation. The priority plumbing repairs will be the first repairs to be completed and are projected to begin on September 2, 2025. Staff will continue to coordinate with MBUSD regarding the completion of all priority upgrades Staff included $825,178 in the FY 2026 CIP to cover the costs of these upgrades. Additionally, Bay Club is prepared to contribute up to $1 million toward hard costs to help cover direct construction costs for upgrades to Begg Pool, regardless of whether the new aquatics facility proceeds. The donation will be made through the LoveMB Foundation. It is worth noting that the priority repairs are anticipated to extend the useful life of Begg Pool by a few years, but they do not address many of the facility and site deficiencies documented in the Study. There continues to be the possibility that future equipment failures could impact operations.
While there is demand from the community to upgrade the site at Begg Pool, without support for additional funding mechanisms for a full renovation or construction of a new center, any major technical failures could lead to the closure of the pool until funds are secured.
Memorandum of Understanding with Bay Club
On August 20, 2024, the City Council approved an MOU with the Bay Club (Attachment) expressing an intent to construct and operate an aquatic facility and related project in cooperation with the City of Manhattan Beach on City-owned property currently leased to Bay Club.
Key provisions of the current MOU include:
1. Bay Club would construct two swimming pools, one junior pool (depth 3-4 feet) and one competition pool (depth 5-6 feet), as well as a proper facility including locker room buildings with appropriate site ingress, egress and parking, located at LA County Assessor’s Identification Number (AIN): 4138-026-900 in Manhattan Beach, CA (the “Aquatic Center”). Bay Club will fund the project costs to build the Aquatic Center estimated between $10-$15 million.
2. Bay Club will work with City staff in developing the program experience, including accommodating select City programming.
3. The Aquatic Center would be owned and operated by Bay Club with special privileges for City residents.
4. The parties would extend the existing lease for a portion of the real property at AIN 4138-026-900 on terms mutually agreed by the parties as part of the documentation.
5. City residents will be eligible to use the Aquatic Center for a daily walk-up fee only available to City residents (e.g., $15 per day) with first priority for programs at the Aquatic Center for City residents.
6. Bay Club will be willing to partially fund a solution for the Begg Pool, with a contribution of up to $1 million.
7. Bay Club was required to perform a Phase 1 environmental report, at Bay Club’s expense.
8. Bay Club will pay for a parking study to analyze whether sufficient parking exists for the Aquatic Center and whether, after installation of an appropriate accessibility ramp, the initial proposed location of Aquatic Center will be acceptable.
City Staff and Bay Club representatives have met several times over the past year to continue discussions and determine if the construction and operation of the described aquatics facility would be of benefit to the City.
DISCUSSION:
Staff has reached a point where it is pertinent to return to City Council to provide an update, to discuss some of the findings, and determine whether staff should continue to pursue the project.
Completed Items
Phase 1 Environmental Reporting
Per the provisions of the MOU, Bay Club completed the Environmental Site Assessment Phase 1 Report (Attachment). The Phase 1 report did not recommend the need for a Phase 2. The Phase 1 found the proposed project would not likely face exposure to contaminants (the report discussed contaminants well below 100 feet below grade). The report recommended a site management plan be prepared and noted the existing monitoring well network may require relocation (monitoring wells to be discussed later in the report).
Title Report
Bay Club submitted a preliminary Title Report (Attachment) that confirms that the property is owned by the City of Manhattan Beach and leased to Bay Club.
Ingress/Egress to Manhattan Village Senior Villas
Bay Club held preliminary community meetings with the Senior Villas. The original conceptual design of the proposed aquatics facility blocked the only ingress and egress to the property. However, these concerns have since been addressed through a second set of conceptual designs submitted to the City (Draft Conceptual Designs – Schemes M and N Attachments).
Programming Considerations
Based on the community input mentioned above and the expertise of City aquatics staff in providing high-quality, well-attended programs at Begg Pool, the City initially requested dedicated time at the new facility to expand City swim lessons, junior guard preparation classes, swim team, water aerobics, and lap swimming.
Through discussions, Bay Club has clarified that their vision is to operate the new aquatics facility similar to their other 90+ pools. They will have control over revenue streams, operating costs, and scheduling. While they can work with the City in developing the program experience, all programming and services will be provided directly by Bay Club staff and not City staff. Bay Club, as the owner and operator, will ultimately have control over the program schedule and will operate the facility with programming similar to their other aquatics facilities (see Bay Club Sample Schedule Attachment - schedules vary by season).
Bay Club has ensured that Manhattan Beach residents will have priority access to the facility for daily use and aquatics programs. They do not have to be members of Bay Club to utilize the facility.
Fees for daily use and programs have yet to be negotiated, but Bay Club emphasized that prices will need to be higher than Begg Pool due to the costs of building a new facility. While not confirmed, the last fee suggested by Bay Club for resident daily use would be approximately $15.00 per use. Currently, the lap swim fee at Begg Pool is $5 for residents and $7 for nonresidents. Recreational swim is $3 for residents and $5 for nonresidents. If the project moves forward, the final proposed fees will be memorialized in the future lease, and staff may return to City Council to determine whether the City desires to subsidize or partially subsidize the fees for residents to utilize the facility.
A new pool with priority access for residents addresses select community needs expressed in recent surveys, including additional water, upgraded aquatics facilities, and expanded programming. Additionally, it is possible that a second community pool in Manhattan Beach may decrease operational impacts on Begg Pool overall.
Pool Details
Pool Depth
Per the provisions in the MOU, Bay Club would construct two swimming pools, one junior pool (depth 3-4 feet) and one competition pool (depth 5-6 feet). Bay Club has since clarified that the maximum depth they are willing to consider for the small pool is 3.5 feet and 6 feet for the large pools.
Community input from the Begg Pool Modernization Study expressed a preference for a pool that could accommodate water polo. Competitive water polo would require a pool depth of at least 6.5 feet. However, as the owner and operator of the facility, Bay Club will determine the final pool depth based on their intended programming, which may not include activities requiring a pool deeper than 6 feet.
Conceptual Designs
As mentioned above, Bay Club submitted a second set of draft conceptual designs (Schemes M and N). It is important to note that Scheme N only incorporates a lap pool. Depending upon final designs, it is possible that only one pool may fit in the leased space. The current conceptual designs fall within an area that is already leased to Bay Club for the purpose of parking.
Funding
The two conceptual designs for the proposed facility (Draft Conceptual Designs – Scheme M and N Attachments), have estimated project costs ranging from approximately $8 to $12 million. Bay Club has indicated that they have a maximum expenditure threshold for the proposed project. Upon staff’s evaluation of the project, a few key items have been identified that could increase their overall cost. If additional items are identified further in the review process that require extensive funding, the project itself may become cost prohibitive for Bay Club.
Considerations with Potential Financial Impacts
Parking Study
The proposed location for the new aquatics facility is currently occupied by existing parking spaces. Based on the current conceptual designs, the project would result in a net loss of approximately 30 parking spaces.
The existing parking lot is already heavily utilized, even without the addition of a new facility. Staff’s preliminary assessment indicates that the future parking demand generated by the aquatics facility, in addition to the existing demand, is likely to exceed the available capacity.
Should the City Council direct staff to move forward with the project, a parking study would need to be completed to fully evaluate how parking is being utilized in the immediate area and if demand will exceed capacity. Bay Club has confirmed that they will cover the costs associated with the parking study.
Required Entitlements and Agreements
If the City Council chooses to move forward, Bay Club will need to submit an application for a Planned Development Plan amendment to change the current land use allowances and conduct an environmental review pursuant to the California Environmental Quality Act (CEQA). Additionally, an amended lease and an updated MOU for the project would need to be addressed. Bay Club has confirmed that they will cover the costs associated with the entitlements and CEQA review.
Retaining Wall
A retaining wall may be required at the project site, pending final design specifications. This additional construction element could increase project costs and may impact Bay Club’s funding limit. More detailed design and engineering would need to occur to determine the full financial impact of a potential retaining wall.
Building Permits
Should the Planned Development Plan amendment be approved, the next step in the development process would be preparation and submittal of building plans. Building plans are routed and reviewed by multiple divisions and departments within the City (building, planning, engineering, fire, etc.) and require more detailed plans than required during the entitlement phase of the project. Upon approval of the building plans, building permits will be issued and inspections will occur throughout the construction process. Bay Club’s cost estimate includes costs associated with the preparation and review of building plans, as well as costs associated with issuance of building permits and inspections during the construction phase.
Additional Considerations
Relocation of Monitoring Wells
There are two monitoring wells at the potential project site, managed by Honeywell to observe and assess groundwater conditions. These wells are located on the east and south sides of the existing parking lot and are 80 to 100 feet deep for data collection. Bay Club and City staff have contacted Honeywell to discuss their plans for decommissioning and relocating the wells. Honeywell has confirmed they can move the wells slightly to the south near the perimeter of Manhattan Village Field at Honeywell’s expense, if the project moves forward. Exact locations will be decided after the finalization of the redevelopment plan. Replacement wells will be installed at the same depths and with similar designs as the current ones. The final decommissioning and relocation plan will be coordinated with the City and the Bay Club after approval by the California Regional Water Quality Control Board and the necessary permits from Los Angeles County Department of Public Health. The estimated downtime for relocation is a few weeks and may impact parking and field access, depending on the new monitoring wells’ locations.
Summary of Benefits and Drawbacks
Potential Benefits:
• Residents would gain a new aquatics option to meet community needs, with priority access.
• The City would not be responsible for construction or operational costs related to the project.
• A new aquatics facility could decrease the demand on Begg Pool.
Potential Drawbacks:
• The City would not be in control of programming at the site.
• The suggested user fee is higher than current public pool use rates.
• Potential parking challenges may arise due to current and expected demand.
Summary of Next Steps
If City Council directs staff to proceed with the project in partnership with Bay Club, staff anticipates the following next steps:
• Update the existing MOU, if required, to reflect the next phase of the project
• Conduct a parking study to assess current and projected parking demand in the proposed site and surrounding area
• Bay club to submit a Planned Development Plan amendment, other applicable entitlements, and initiate the required CEQA review
• Begin discussions related to lease terms
• Potential relocation of monitoring wells
• Complete additional public outreach
CONCLUSION:
In light of the information provided herein, staff recommends that the City Council discuss and provide direction regarding whether the City should continue to proceed with efforts to advance the potential construction and operation of an aquatic facility by Bay Club as described in the existing MOU. If directed to proceed, staff will reevaluate the MOU and, if required, return with an updated MOU for City Council’s consideration.
PUBLIC OUTREACH:
Past Outreach:
True North Research conducted a statistically valid survey about Manhattan Beach residents’ experiences, opinions, and priorities related to aquatics, Begg Pool, and a potential new Aquatics Center in 2022.
Community meetings to explore options for modernizing the Begg Pool facility were held November 13, 2023, and February 27, 2024.
Additional input was gathered by consultants and staff in many individual and small group discussions with stakeholders and via a second survey in 2023 with over 1,400 responses.
The Parks and Recreation Commission discussed the Begg Pool Modernization Study monthly from August 2023 to March 2024.
The City Council discussed the Begg Pool Modernization Study findings and conceptual designs at their meeting on May 7, 2024, and the Manhattan Beach Unified School District Board of Trustees discussed the Begg Pool Modernization Study findings and conceptual design at their meeting on May 15, 2024.
The City Council discussed the MOU with the Bay Club regarding constructing and operating an aquatics facility at their meeting on August 20, 2024.
Recent Outreach:
The City sent a notification out to approximately 1,500 individuals who requested updates about the Begg Pool project, and to the Manhattan Village Mall, Westdrift Hotel, Kinecta property at 1440 Rosecrans Avenue, Manhattan Village HOA and the Senior Villas, to inform them that this item would appear on the September 2, 2025, City Council meeting agenda. Additionally, the agenda was posted online and in physical locations in accordance with applicable law; and was sent via an e-notification to all individuals that request to be notified when a City Council agenda is posted.
ENVIRONMENTAL REVIEW:
The City has reviewed the discussion item for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the discussion item is not subject to CEQA. Thus, no environmental review is necessary. Should the City undergo any Planning Entitlements related to the efforts to advance the potential construction and operation of an aquatic facility by Bay Club as described in the existing MOU, applicable CEQA compliance will be evaluated and completed at that time.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Bay Club MOU – August 20, 2024
2. Environmental Site Assessment Phase 1 Report and Title Report (Web-Link Provided)
3. Begg Pool Summer Season Schedule
4. Bay Club Sample Schedule
5. Draft Conceptual Design – Scheme M
6. Draft Conceptual Design – Scheme N
7. PowerPoint Presentation