TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, Acting City Manager
FROM:
George Gabriel, Assistant to the City Manager
SUBJECT:Title
Consideration of a Resolution Approving a Memorandum of Understanding with the Bay Club Company Regarding Constructing and Operating an Aquatic Facility and Related Project in Cooperation with the City (Acting City Manager Mirzakhanian).
(Estimated Time: 30 Min.)
ADOPT RESOLUTION NO. 24-0094
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 24-0094 approving a Memorandum of Understanding (MOU) with the Bay Club Company regarding constructing and operating an aquatic facility and related project in cooperation with the City.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action. However, as indicated in the MOU the City will be solely responsible for and bear all of the City’s reasonable expenses, including, without limitation, expenses of legal counsel, and other advisors, incurred at any time in connection with pursuing, negotiating and consummating the transactions associated with the MOU. Once these legal and consultant cost estimates are fully identified, staff will return to City Council to request an additional appropriation from the unreserved General Fund balance.
BACKGROUND:
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.
The Begg Pool Facility has reached the end of its useful life and requires significant pool, mechanical, electrical, plumbing, locker room, accessibility, safety, and additional upgrades due to age and level of deterioration.
At the May 7, 2024, meeting, City Council received and filed a report regarding the Begg Pool Modernization study findings and conceptual design options. Additionally, City Council directed staff to:
1. Hire a consultant to conduct a poll regarding community priorities for funding Begg Pool upgrades;
2. Continue discussions with the Bay Club regarding their proposal for a new community pool; and
3. Research the costs associated with ensuring the pool remains safe for the next two to three years.
DISCUSSION:
Consistent with Council direction, staff continued discussions with the Bay Club regarding their proposal for a new community pool. As such, the Bay Club and the City have negotiated an MOU expressing an intent to construct and operate an aquatic facility and related project in cooperation with the City of Manhattan Beach.
Key provisions of the MOU include:
1. Bay Club would construct two (2) swimming pools, one (1) junior pool (depth 3-4 feet) and one (1) 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 98 Park Place, 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. Bay Club will enter into a long-term ground lease for the real property at 98 Park Place, Manhattan Beach, CA with the City 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. Upon signing this MOU, Bay Club will order Phase 1, and as needed Phase 2, environmental reports on the Real Property, at Bay Club’s expense.
8. The City and Bay Club will each be solely responsible for and bear all of their reasonable expenses, including, without limitation, expenses of legal counsel, and other advisors, incurred at any time in connection with pursuing, negotiating and consummating the transactions contemplated hereby.
9. Bay Club and the City will work to immediately address 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.
The proposal set forth in the proposed MOU is valid through 5:00pm PDT on August 31, 2024.
CONCLUSION:
Staff recommends that the City Council adopt Resolution No. 24-0094 approving a Memorandum of Understanding with the Bay Club Company regarding constructing and operating an aquatic facility and related project in cooperation with the City.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed action 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 activity is not subject to CEQA. Thus, no environmental review is necessary at this time.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 24-0094
2. Memorandum of Understanding - Bay Club Company