HomeMy WebLinkAboutCC AG PKT 2004-09-27 #W AGENDA REPORT
DATE: September 27, 2004
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: June Yotsuya, Assistant City Manager
SUBJECT: APPROVAL OF AGREEMENT WITH BIXBY RANCH
COMPANY FOR INTERIM MANAGEMENT AND
MAINTENANCE OF OLD RANCH TENNIS CLUB AND
REPORT ON STATUS OF FUTURE OPERATION OF
FACILITY
SUMMARY OF REQUEST:
Staff recommends City Council:
1. Provide authorization to City Manager to contract with Bixby Ranch Company
for interim management and maintenance of Old Ranch Tennis Club and,
2. Provide authorization to City Manager and staff to proceed with physical
improvements to the property not to exceed $500,000 in order to improve the
tennis facility for public recreational use and if necessary, use Design -Build
Contracts per the Charter to perform all necessary design build requirements for
the project
BACKGROUND:
On September 23, 2004, the City took possession of the Old Ranch Tennis Club site. City staff
is moving forward with the Request for Proposals process to secure a lessee to operate the tennis
club as a municipal recreational facility. The contract negotiations have not been completed but
staff anticipates making a recommendation in the next month.
Because the facility was accepted in an "as is" condition and was originally operated privately,
there are physical improvements that are needed before the City can open it up for public
recreational use. To accommodate the current users, staff was asked to explore a method to keep
the club open during renovation of the facility. Staff has negotiated an agreement with Bixby
Ranch Company to continue to maintain the current level of operation, without any public play,
during the interim period. The proposed agreement covers a minimum period of three months
with the City reimbursing Bixby for actual monthly expenses minus monthly revenue, plus a
management fee of $5000 per month. This is estimated to be approximately $10,000 per month
Agenda Item W
September 27, 2004
City Council Agenda Report —Old Ranch Tennis Club, Interim Operating Agreement with Bixby
Ranch Company and Status of Future Operation of Facility
and not expected to exceed $15,000 per month. The cost to continue the present operation at the
club is calculated to be $30,000 to $45,000 for a three -month period. This expenditure should be
paid for out of funds dedicated to the City through the Bixby Old Ranch Towne Center
Development Plan. An alternative is to remain completely closed during the renovation but that
may directly affect the club's ability to sustain its current membership when the facility reopens.
As mentioned previously, the Tennis Club property requires physical improvements to the site in
order to improve the facility for public recreational use, including ADA requirements, insurance
liability upgrades and other facility maintenance needs. Public Works Department has prepared
cost estimates for the anticipated improvements (Attachment A) from $259,000 for basic priority
improvements up to $634,000 for other needed upgrades. The cost of future annual ongoing
maintenance is estimated to be approximately $160,000 per year (Attachment B) including
utilities, janitorial services, landscape maintenance, court maintenance and other miscellaneous
repairs.
Staff recommends that the source of funding for the proposed improvements come from the
monies received as part of the Bixby Old Ranch Towne Center Development Plan and
consideration be given to setting aside additional money to cover future ongoing maintenance
expenses that have not been provided for in the adopted two -year budget. Part of the
recommendation is for authorization to proceed with physical improvements to the tennis club
property in an amount not to exceed $500,000 that will cover a large portion but not all of the
capital repairs. A two -year maintenance program will cost $320,000, and if not funded through
the Bixby monies, will need to be allocated from undesignated general fund balances.
Construction and contract procurement will be in accordance with the City Charter and the City
will act as the General Contractor. The City's existing maintenance service providers will be
requested to provide services through negotiated costs or time and material costs. In addition,
the Public Works Department is also requesting the authority to use Design -Build Contracts in
accordance with the Charter for certain aspects of the work. In certain instances where detailed
design is required such as conversion of restrooms, Design -Build may expedite project
completion and reduce project costs. At this time, Public Works will be working under a tight
construction schedule and will attempt to complete major repairs by the end of the year.
However, as construction planning can sometimes experience setbacks, staff understands that
some flexibility must be considered in balancing the construction work with the transitional
operation of the facility under the Bixby tennis operation agreement as well as with the future
lessee. The projected construction schedule is slated for three months but may end up going into
the next calendar year.
FISCAL IMPACT:
If public improvements and ongoing maintenance costs are not allocated from the monies
received from Bixby Ranch Company, then consideration will need to be given to using non -
allocated General Fund monies for these expenses. Attachment C is a summary of proposed
expenses.
September 27, 2004
City Council Agenda Report —Old Ranch Tennis Club, Interim Operating Agreement with Bixby
Ranch Company and Status of Future Operation of Facility
RECOMMENDATION:
Submitted by:
J e Yots fa, Assi City Manager
Reviewed by:
, ,,, e %
Mar K. Vukojevic, P.E.
Interim Director of Public Works /City Engineer
NO DA b APP',I.1 # 4„ air s
John Bahorski, City Manager
achments
Old Ranch Tennis Club Attachme A DRAFT
Preliminary Opinion of Probable Cost' Capital Repairs
From To
Option 1: Basic Priority Range $ 230,000 $ 290,000
Option 2: Basic + Upgrades Range $ 580,000 $ 680,000
Option 1: Basic
Repair _ _ T` _ Source __ _ _Pr iority_ Option 2: Upgrades
Clubhouse (37) -
1 Replace /Install Electrical - exit signs FCA $ 2,000 $ 2,000
2 Electrical - 60A switch, enclosure FCA $ 1,500 $ 1,500
Replace Hot Water Heater, Strap &
3 Piping FCA $ 1,500 $ 1,500
4 Replace HVAC - air pump FCA $ 28,000 $ 28,000
ADA Upgrades - create unisex restroom
5 FCA $ 16,000 $ 16,000
Install Handicap Ramp 1(from walkway
6 to Clubhouse) FCA $ 12,000 $ 12,000
Install Handicap Ramp 2 (from
7 Clubhouse to court level) FCA $ 19,000 $ 19,000
8 Remodel (Remove Glass Partition) JPIA $ 15,000
9 Remodel Kitchen (basic) JPIA $ 20,000
10 Tile repairs JPIA $ 2,000 $ 2,000
11 Paint exterior Visual $ 7,000
12 Paint Interior Visual $ 7,000
Plumbing and electrical fixture upgrade
13 Visual $ 7,500
14 New tables & chairs Visual $ 8,000
__ __ Total $ 82,000 $ 146,500
Entry- _ Gate /Site (37C) - -- ,, _ . ? .
Replace Drinking Fountain
1 Refrigeration unit FCA $ 1,000 $ 1,000
Replace damaged & corroded 100W
incandescent lighting fixtures (walkway
2 lighting) FCA $ 6,000
Replace damaged and corroded high
pressure sodium (H.P.S) light fixtures
3 (court lighting) FCA $ 65,000
4 Repave Parking Area FCA $ 26,000 $ 26,000
5 Landscape area behind cell towers PW $ 7,000
Landscaping - Remove dead material,
trim overgrowth and thinning out;
6 exterior 60 %, interior 40% PW $ 24,000
Landscaping - Irrigation repairs and
7 replacement PW $ 8,000
Landscaping - thatching, aeration and
8 fertilization of tun` PW $ 10,000
g Landscaping - plant unplanted areas pW $ 10,000
Landscape upgrades, flowers, shrubs,
10 trees PW $ 10,000
11 Replace Kiosk Visual $ 2,500
12 Drainge outlet repair Visual $ 2,000 $ 2,000
13 ADA - stair rails JPIA $ 5,000 $ 5,000
14 Resurface 2 courts Visual $ 15,000
Total $ 34,000 $ 191,500
9/20/2004 1
Old Ranch Tennis Club Attachment A DRAFT
Preliminary Opinion of Probable Cost* Capital Repairs
• From To
Option 1: Basic Priority Range $ 230,000 $ 290,000
Option 2: Basic + Upgrades Range $ 580,000 $ 680,000
Option 1: Basic
- Repair Source - T - Priority Option 2: Upgrades
Locker /Shower /Restroom (37A) .
1 Electrical Repairs- 150A panel FCA $ 3,000 $ 3,000
2 Electrical Repairs- exterior Tight (1) FCA $ 500 $ 500
3 ADA Upgrades - restroom (2) FCA $ 18,000 $ 18,000
4 Minor Repair Roof FCA $ 1,500 $ 1,500
5 Replace 5 ton NC FCA $ 13,000 $ 13,000
6 Replace siding FCA $ 18,000
Refurbish & ADA exterior & court yard
7 doors FCA $ 5,000 $ 5,000
8 Paint window frames FCA $ 2,000
9 Spot Repair lockers FCA $ 300
10 Spot Repair drywall ceiling FCA $ 300
11 Paint interior FCA $ 12,000
12 Replace carpet FCA $ 11,000
13 Replace Roof FCA $ 32,000 $ 32,000
14 Sauna ADA (entry modifications) JPIA $ 5,000 $ 5,000
15 Replace various plumbing fixtures Visual $ 12,000
Total $ 78,000 $ 133,600
Work Out Room (37B)
1 Spot Repair Siding FCA $ 1,500
2 Paint window frames FCA $ 400
3 Paint Exterior FCA $ 900
4 Paint interior FCA $ 1,400
ADA entrance (replace doors and
5 walkway) ACM $ 5,000 $ 5,000
6 Demo wooden patio Visual $ 2,000
6 New work out equip pieces (4) Visual $ 5,000
Total $ 5,000 $ 16,200
GRANDTOTAL
Grand Total $ 199,000 $ 487,800
Inspection /PM 29,850 73,170
Contingency 29,850 73,170
$ 259,000 $ 634,000
* Actual construction costs may vary depending on changes to labor and material rates, work
package size, and construction timeline. An additional $100,000 in general remodeling work is
also recommended for the locker facility in addition to the amounts listed for Option 2.
9/20/2004 2
Attachement B
Maintenance
Old Ranch Tennis Club DRAFT
Preliminary Opinion of Probable Cost*
Maintenance
Item Annual Monthly
1 Electricity $ 29,000 $ 2,417
2 Gas $ 3,000 $ 250
3 Water $ 12,000 $ 1,000
4 Telephone $ 2,000 $ 167
5 Landscape $ 51,000 $ 4,250
6 Janitorial $ 23,000 $ 1,917
7 Misc Repairs & maint. $ 12,000 $ 1,000
8 Court Resurfacing (2 per yr) $ 10,000 $ 833
9 Court Cleaning $ 18,000 $ 1,500
$ 160,000 $ 13,333
Attachment C
City of Seal Beach
Analysis of Bixby Ranch Company Contribution for the Tennis Club
Year - to Date Contribution from Bixby Ranch Company 107,000
Amount to be Contributed from Bixby Ranch Company 893,000
Total Contribution $1,000,000
Amount expended on preliminary project designs (8,700)
Admin expenses re: attorney, prop transfer, etc. (10,000)
Contribution amount available $ 981,300
Proposed Expenditures for Old Ranch Tennis Club
Public Improvement upgrades (500,000)
Two year budget for ongoing maintenance (320,000)
Bixby Ranch Company interim operating agreement (45,000)
Remaining Balance
116,300
The City is currently negotiating an operating agreement with a new lessee regarding expenses
and revenue projections. The ongoing maintenance expenses may•go up or down slightly based
on the final outcome of negotiations. Based on figures received by the leading candidate for the
operating contract, the projected annual revenues are minimal and city accounting practices
do not permit revenues received for the tennis club to directly offset tennis club expenditures.
Therefore, revenue is not considered a factor in the proposed expenditure plan.
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