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HomeMy WebLinkAboutYMCA of San Diego County - Maintenance & Operating Agreement - Las Palmas Pool and Camacho Recreation Center - 2013OPERATING AGREEMENT LAS PALMAS POOL AND CAMACHO GYM RECREATION CENTER This Operating Agreement is entered into between the CITY OF NATIONAL CITY, a municipal corporation (CITY). and YMCA OF SAN DIEGO COUNTY, a California nonprofit, public benefit corporation (YMCA), (collectively, the Parties) with reference to the following facts: RECITALS A. CITY owns the real property commonly known as Las Palmas Park, located in proximity to Newell Street, between 20th Street and 22nd Street, National City, California, as further described in Exhibit A and depicted on Exhibit B (the Park). B. YMCA is an experienced human services organization, nationally recognized in aquatics operations and wellness activities, and a well -respected charity in the greater San Diego community. C. CITY wishes to have YMCA operate those portions of the Park known as the Las Palmas Pool and the Camacho Gym Recreation Center with YMCA programs serving the local community. NOW, THEREFORE, in consideration of the foregoing facts, and in consideration of the promises and covenants hereinafter set forth, the parties agree as follows: ARTICLE 1 TERM OF AGREEMENT 1.1 Term. The term of this Operating Agreement shall be Five (5) years, commencing on the first day of the calendar month immediately following full execution of this Operating Agreement (the Commencement Date) and terminating on the anniversary of the Commencement Date five years thereafter. The Commencement Date shall be memorialized in writing and such document shall be executed by both parties. 1.2 Option to Extend Term. If YMCA is not in default of any provision of this Operating Agreement upon the expiration of the Term, YMCA may elect to extend the term of this Operating Agreement for up to one additional five (5) year term. Should either party seek to extend the term of this Operating Agreement after the initial five (5) year extension, the parties may do so only upon mutual agreement. 1.3 Option to Terminate. YMCA shall have the option to terminate this Operating Agreement, without cause, at any time after the first twelve (12) months after the Commencement Date upon one -hundred eighty (180) days written notice to CITY. The City shall have the option to terminate this Operating Agreement with cause, upon compliance with the notice of default provision in Article 12. 1 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 1.4 Annual Reporting by YMCA. YMCA shall provide annual reports to the City denoting National City participant numbers, total participant numbers, events coordinated, capital projects completed, total joint use time, budget, next year operating and maintenance plan and fee schedule, and any other pertinent statistics. YMCA shall provide City a written report on the first ninety (90) days of operation within the first six months of this Operating Agreement, which report shall include the same information as required in the annual report. ARTICLE 2 PREMISES 2.1 Delivery of Possession. For the purpose of operating the Las Palmas Pool and the Camacho Gym Recreation Center (the Premises) for the benefit of the citizens of National City, CITY shall deliver exclusive possession of the Premises to YMCA, subject to the covenants and conditions hereinafter set forth, on the Commencement Date. 2.2 Ownership of Personal Property and Improvements. The rights and obligations of the parties regarding the ownership of personal property and improvements on the Premises shall be as follows: 2.2.1 Ownership of Personal Property. All improvements existing on the Premises (Improvements), together with all fixtures permanently attached to the Premises (Fixtures), as of the Commencement Date shall remain the property of CITY during the Term. YMCA shall not remove any Improvements or Fixtures from the Premises nor waste, destroy, or modify any Improvements or Fixtures on the Premises, except as permitted by this Operating Agreement. 2.2.2 Ownership of Improvements and Fixtures. All of YMCA's furniture, furnishings, signs, and other personal property not permanently affixed to the Premises (Personal Property) shall remain the property of YMCA. YMCA shall, at its expense, repair any damage occasioned to the Premises or any Improvements by reason of the removal of any Personal Property. ARTICLE 3 PERMITTED USE 3.1 Permitted Uses. YMCA shall operate the Premises by providing for and facilitating the activities listed on the attached Exhibit C. which may be amended or replaced from time -to -time by agreement of the authorized representatives of the parties. 3.2 Use by Others. The YMCA may allow short term use of the Premises to other groups or organizations, subject to fees as imposed by YMCA. YMCA agrees to work with the Lions Club of National City to accommodate the OneSight annual program historically held at the Camacho Gym Recreation Center. 3.3 Consideration. YMCA's performance under this Operating Agreement shall serve as the sole consideration due CITY for YMCA's right to use and operate the Premises. YMCA may, in its sole discretion, charge for the use of the Premises and retain any and all remuneration collected. 2 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 3.4 CITY Residents. Participants seeking day use of the Premises who prove to YMCA's satisfaction that they are Residents of CITY shall not be required to become members of YMCA and shall be offered day use at a reduced rate. 3.5. Financial Assistance. As a charitable organization, YMCA offers financial assistance to qualified participants subject to the availability of funds. YMCA shall extend financial assistance to participants at the Premises under the same terms and conditions as applied to other YMCA facilities. 3.6 Compliance with Laws. YMCA, at its sole expense, shall procure, maintain and hold available for C1TY's inspection any governmental license or permit required for the proper and lawful conduct of YMCA's operation of the Premises. YMCA shall not use the Premises for any use or purpose in violation of the laws of the United States of America, or the laws, ordinances, regulations, orders or requirements of the State of California, the County of San Diego, the CITY, or of other lawful authorities. YMCA shall, at its expense, comply promptly with all applicable statutes, laws, ordinances, rules, regulations, orders, covenants and restrictions of record, and requirements in effect during the Term (Laws or Orders), regulating the use by YMCA of the Premises. 3.7 CITY Employees and Contract Instructors. All CITY employees and contract instructors currently working at the Premises who formally apply for employment with the YMCA for work at the Premises will be given due consideration and are guaranteed an interview. ARTICLE 4 UTILITIES 4.1 Utility Services. YMCA shall be responsible for maintaining utility services to the Premises, and shall provide and pay for all utilities or services necessary for its use and operation of the Premises during the Term, including but not limited to gas, water, electricity, trash, sewer charges and telephone. YMCA shall pay directly to the applicable utility company such charges, and CITY shall have no obligation to pay for such utility services. ARTICLE 5 REPAIRS; MAINTENANCE 5.1 YMCA's Repair and Maintenance Obligations. YMCA acknowledges that it has made a thorough inspection of the Premises and that it accepts the Premises "as -is" as of the Commencement Date, subject to the list of deferred maintenance items, attached as Exhibit D. To remediate some of those deferred maintenance items, CITY shall deposit with YMCA the sum of Two Hundred Fifty Thousand Dollars ($250,000.00) on the Commencement Date. YMCA shall pay for the costs of remediation of as many items on Exhibit D as it, in its sole discretion. deems possible using all of the deposited funds. YMCA shall give safety of the public the highest priority in deciding what items to remediate. YMCA shall expend the deposited funds no later than nine (9) months following the Commencement Date. YMCA shall provide an 3 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 accounting of all expenditures made related to the remediation of the deferred maintenance items within 30 days following the exhaustion of the deposited funds, but in any event, no later than 12 months following the Commencement Date. YMCA shall provide receipts, documents, and/or contracts for all remediation using CITY funds upon request by CITY. YMCA shall comply with all applicable state and/or local procurement and contracting requirements. Thereafter, YMCA shall, at its own cost and expense, repair, maintain in good and tenantable condition, ordinary wear and tear excepted, and replace, as necessary, the Premises; provided, however. that the sum of such costs and expenses shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) during the Term, and shall not exceed Fifty Thousand Dollars ($50,000.00) during any one year of the Term. YMCA's obligations hereunder shall apply regardless of whether the repairs, restorations, and replacements are ordinary or extraordinary, foreseeable or unforeseeable, capital or noncapital, or the fault or not the fault of YMCA, its agents, employees, invitees, visitors, or contractors. All replacements made by YMCA shall be of like size, kind, and quality to the items replaced. 5.2 CITY's Right to Inspect; CITY Not Obligated to Repair or Maintain. YMCA shall permit CITY to enter the Premises at all times during usual hours of operation to inspect the same, provided, however, that such entry shall not unreasonably interfere with YMCA's operation of the Premises. Nothing contained in this Article 5, however, shall be construed as creating any duty on the part of CITY to do any work which, under any provision of this Operating Agreement, YMCA may be required to do. 5.3 Prevailing Wages. YMCA shall, as obligated by law, pay prevailing wages for work performed on the Premises. ARTICLE 6 ALTERATIONS 6.1 Alterations. YMCA may, at its sole cost and expense, make such alterations, replacements, additions, or changes to the Premises, or may construct additional improvements on the Premises, as YMCA may find necessary or convenient for its operation of the Premises in accordance with construction plans submitted to and approved by the CITY. 6.2 Construction Permits and Licenses. YMCA shall procure, at its sole cost and expense, all permits and licenses that are or may now or in the future become necessary or required from any local governmental agency for the proposed construction of any Alterations. 6.3 As -Built Plans. Within sixty (60) days following a request from the CITY, YMCA, its Engineer or Architect shall furnish CITY with a complete set of "As -Built" plans of any Alteration. 4 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 ARTICLE 7 MECHANICS' LIENS; STOP NOTICES 7.1 Mechanics' Liens; Stop Notices. YMCA shall pay, or cause to be paid, the total cost and expense of all works of improvement, as that phrase is defined in the Mechanics Lien Law in effect at the place of construction, done by it, or caused to be done by it, on the Premises, and for all materials furnished for or in connection with any such work. If any lien or stop notice is filed against the Premises, YMCA shall cause the lien or stop notice to be discharged of record within one hundred eighty (180) days after it is filed. YMCA shall indemnify, defend, and hold CITY harmless from any and all liability, loss, damage, costs, attorneys' fees and all other expenses on account of claims of lien of laborers or materialmen or others for work performed or materials or supplies furnished for YMCA or persons claiming under YMCA. 7.2 Notice of Lien or Stop Notice. Should any claim of lien or stop notice related to YMCA's work of improvement of the Premises be filed against the Premises or any action be filed against the Premises or any action affecting the title to such property be commenced, the party receiving notice of such lien or stop notice or action shall immediately give the other party written notice thereof. 7.3 Notice of Nonresponsibility. CITY or its representatives shall have the right to post and keep posted on the Premises notices of nonresponsibility or such other notices which CITY may deem to be proper for the protection of CITY's interest in the Premises. YMCA shall, before the commencement of any work which might result in any such lien or stop notice, give to CITY written notice of its intention to do so in sufficient time to enable posting of such notices. ARTICLE 8 TAXES 8.1 Definition. "Taxes" shall mean all taxes, governmental bonds, special assessments, charges, or transfer taxes, license and transaction fees, including, but not limited to, (i) any state, local, federal income tax, or any real or personal property tax, (ii) increases in taxes attributable to YMCA's operation of the Premises, or (iii) any taxes which are essentially payments to a governmental agency, other than CITY, for the right to make improvements to the Premises. YMCA recognizes and agrees that this agreement may create a possessory interest subject to property taxation and that YMCA may be subject to the payment of taxes levied on such interest. YMCA agrees to pay, before delinquency, all taxes, assessments and fees assessed or levied upon the Premises. 8.2 Responsibility for Payment of Taxes. CITY shall not be obligated to pay any Taxes accruing against YMCA on the Premises or any interest of YMCA therein before, during the Term, or any extension thereof; all such payments shall be the sole responsibility of YMCA. In addition, YMCA shall be solely responsible for payment of any Taxes levied upon any Improvements, Fixtures or Personal Property located on the Premises, to the extent that such Taxes result from the operations or other activities of YMCA upon, or in connection with, the Premises. 5 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 ARTICLE 9 INDEMNIFICATION AND INSURANCE 9.1 YMCA's Indemnity. CITY shall not be liable for, and YMCA shall defend and indemnify CITY and the employees and agents of CITY (CITY Parties), against any and all claims, liability, damages, or costs (Claims) related to YMCA's improvement, operation or use of the Premises and arising either directly or indirectly from any act, error, omission or negligence of YMCA or its contractors, licensees, invitees, members, agents, servants or employees. YMCA shall have no obligation, however, to defend or indemnify CITY Parties from a Claim if it is determined by a court of competent jurisdiction that such Claim was caused by the sole negligence or willful misconduct of CITY Parties. 9.2 CITY's Indemnity. YMCA shall not be liable for, and CITY shall defend and indemnify YMCA and the employees and agents of YMCA (YMCA Parties), against any and all claims, liability, damages, or costs (Claims) related to CITY's improvement, operation, or use of the Park, excluding the Premises, and arising either directly or indirectly from any act, error, omission or negligence of CITY or its contractors, licensees, invitees, members. agents, servants or employees. The CITY shall have no obligation to defend or indemnify YMCA Parties for Claims related to the Premises. CITY shall have no obligation. however, to defend or indemnify YMCA Parties from a Claim if it is determined by a court of competent jurisdiction that such Claim was caused by the sole negligence or willful misconduct of YMCA Parties. 9.3 Covered Claims. The obligations of YMCA and CITY hereunder to indemnify, defend and hold each other harmless shall not apply to the extent that insurance carried by YMCA or CITY, other than any program of self-insurance carried by either party, covers any Claim. 9. 4 Insurance Obligations. The YMCA, at its sole cost and expense, shall purchase and maintain, when applicable, to purchase and maintain throughout the term of this Agreement, the following checked insurance policies: A. ❑ If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles ("any auto"). The policy shall name the CITY and its officers, agents and employees as additional insureds, and a separate additional insured endorsement shall be provided. C. Commercial General Liability Insurance, with minimum limits of $2,000,000 per occurrence and $4,000,000 aggregate, covering all bodily injury and property damage arising out of its operations under this Agreement. The policy shall name the CITY and its officers, agents and employees as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to this "project" or "location". 6 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of YMCA's employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Agreement. If YMCA has no employees subject to the California Workers' Compensation and Labor laws, YMCA shall execute a Declaration to that effect. Said Declaration shall be provided to YMCA by CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the YMCA shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. G. Insurance shall be written with only California admitted companies that hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. H. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the YMCA does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. 1. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. ARTICLE 10 HAZARDOUS MATERIALS 10.1 Hazardous Materials Laws -Definition. As used in this Article, the term "Hazardous Materials' Laws" means any and all federal, state or local laws or ordinances, rules, decrees, orders, regulations or court decisions (including the so-called "common law"), including without limitation the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C., sec.9601 et seq.), the Hazardous Materials Transportation Act, as amended (49 U.S.C., sec.1801 et seq.), and the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C., sec. 6901 et seq.), relating to hazardous substances, hazardous 7 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 materials, hazardous waste, toxic substances, environmental conditions on, under or about the Premises. soil and ground water conditions or other similar substances or conditions. 10.2 Hazardous Materials - Definition. As used in this Section the term "Hazardous Materials" means any chemical, compound, material, substance or other matter that: a. is a flammable, explosive, asbestos, radioactive nuclear medicine, vaccine, bacteria, virus, hazardous waste, toxic, overtly injurious or potentially injurious material, whether injurious or potentially injurious by itself or in combination with other materials; b. is controlled, referred to, designated in or governed by any Hazardous Materials Laws; c. gives rise to any reporting, notice or publication requirements under any Hazardous Materials Laws, or d. is any other material or substance giving rise to any liability, responsibility or duty upon the CITY or YMCA with respect to any third person under any Hazardous Materials Law. 10.3 YMCA's Representations and Warranties. YMCA represents and warrants that, during the Term or any extension thereof, YMCA shall comply with the following provisions of this Section unless otherwise specifically approved in writing by CITY, subject to the terms and conditions of YMCA's maintenance obligations provided elsewhere in this Operating Agreement: a. YMCA shall not cause or permit any Hazardous Materials to be brought, kept or used in or about the Premises by YMCA, its agents, employees, assigns, contractors or invitees, except as required by YMCA's permitted use of the Premises in the normal course of operations; b. Any handling, transportation, storage, treatment or usage by YMCA of Hazardous Materials that is to occur on the Premises following the Commencement Date shall be in compliance with all applicable Hazardous Materials Laws; c. Any leaks, spills, release, discharge, emission or disposal of Hazardous Materials which may occur on the Premises following the Commencement Date shall be promptly and thoroughly cleaned and removed from the Premises by YMCA at its sole expense, and any such discharge shall be promptly reported in writing to CITY, and to any other appropriate governmental regulatory authorities; d. No friable asbestos shall be constructed, placed on, deposited, stored, disposed of, or located by YMCA in the Premises; e. No underground improvements, including but not limited to treatment or storage tanks, or water, gas or oil wells shall be located by YMCA on the Premises without CITY's prior written consent; f. YMCA shall conduct and complete all investigations, studies, sampling, and testing procedures and all remedial, removal, and other actions necessary to clean up and remove all Hazardous Materials on, from, or affecting the Premises in accordance with all applicable Hazardous Materials' Laws and to the satisfaction of CITY: g. YMCA shall promptly supply C1TY with copies of all notices, reports, correspondence, and submissions made by YMCA to the United States Environmental Protection Agency, the United Occupational Safety and Health Administration, and any other local, state or federal authority which requires submission of any information concerning environmental matters or hazardous wastes or substances pursuant to applicable Hazardous Materials' Laws; and 8 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 h. YMCA shall promptly notify CITY of any liens threatened or attached against the Premises pursuant to any Hazardous Materials' Law. If such a lien is filed against the Premises, then, within the earlier of (i) twenty (20) days following such filing, or (ii) before any governmental authority commences proceedings to sell the Premises pursuant to the lien, YMCA shall either: (a) pay the claim and remove the lien from the Premises, or (b) furnish either (1) a bond or cash deposit reasonably satisfactory to CITY in an amount not less than the claim from which the lien arises, or (2) other security satisfactory to CITY in an amount not less than that which is sufficient to discharge the claim from which the lien arises. At the end of this Operating Agreement, YMCA shall surrender the Premises to CITY free of any and all Hazardous Materials and in compliance with all Hazardous Materials' Laws affecting the Premises. ARTICLE 11 ASSIGNMENT 11.1 CITY's Consent Required. YMCA shall not voluntarily or involuntarily assign or otherwise transfer all or any portion of its rights and duties under this Operating Agreement without CITY's prior written consent. Any attempted assignment or transfer without CITY's prior written consent shall be void. ARTICLE 12 DEFAULTS BY YMCA; REMEDIES 12.1 Events of Default: Remedies. If YMCA neglects or fails to perform or observe any of its obligations under the terms, covenants. or conditions contained in this Operating Agreement within thirty (30) days after written notice of default or, when more than thirty (30) days shall be required because of the nature of the default, if YMCA fails to cure such default after written notice thereof, then YMCA shall be liable to CITY for any and all damages sustained by CITY as a result of YMCA's breach and CITY may terminate this agreement. ARTICLE 13 DEFAULTS BY CITY; REMEDIES 13.1 Events of Default; Remedies. If CITY neglects or fails to perform or observe any of its obligations under the terms, covenants, or conditions contained in this Operating Agreement within thirty (30) days after written notice of default or, when more than thirty (30) days shall be required because of the nature of the default, if CITY fails to cure such default after written notice thereof, then CITY shall be liable to YMCA for any and all damages sustained by YMCA as a result of CITY's breach and YMCA may terminate this agreement. ARTICLE 14 ABANDONMENT 14.1 Abandonment. YMCA shall not vacate or abandon the Premises at any time during the Term nor permit the Premises to remain unoccupied for a period of longer than five (5) 9 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 consecutive days during the term of this Operating Agreement. These provisions shall not apply if the Premises are closed and operation is temporarily discontinued therein on account of strikes, lockouts, or similar causes beyond the reasonable control of YMCA. ARTICLE 15 DAMAGE OR DESTRUCTION 15.1 YMCAs Duty to Repair Casualty. Except as provided in this article and subject to the terms and conditions of YMCA's maintenance obligations provided elsewhere in this Operating Agreement, should the Premises be damaged by fire, earthquake, or any other identifiable event of a sudden, unexpected, or unusual nature (Casualty), YMCA, at YMCA's sole cost and expense, shall, as expeditiously as reasonably possible, repair any damages to the Premises, and repair, restore and replace any such damaged or destroyed Fixtures, Improvements or Personal Property. 15.2 Construction Provisions. In the event of any reconstruction of the Premises, Fixtures or Improvements required of YMCA pursuant to this Article, YMCA shall repair the Premises, and repair or rebuild such Fixtures and Improvements, to substantially the same condition they were in immediately preceding such Casualty. 15.3 No Abatement. In the event of reconstruction, replacement or repair by YMCA pursuant to this Article, YMCA shall continue its operations on the Premises during any such period to the extent reasonably practicable from the standpoint of prudent business management, and in continuing compliance with applicable laws and regulations. YMCA shall not be entitled to any compensation or damages from CITY for loss of use of the whole or any part of the Premises, YMCA's Personal Property, or any inconvenience or annoyance occasioned by such damage, reconstruction or replacement. 15.4 Major Destruction. Notwithstanding any of the foregoing provisions of this Article to the contrary, if, at any time after the Commencement Date, (i) the Improvements are damaged or destroyed to the extent of more than twenty-five percent (25%) of their replacement cost, or (ii) the damage is such that the Improvements cannot be repaired and restored within one hundred and eighty (180) days after the Casualty, then YMCA shall have the right to terminate this Operating Agreement upon thirty (30) days' prior written notice to CITY. ARTICLE 16 EMINENT DOMAIN 16.1 Condemnation. If all of the Premises is taken under eminent domain proceedings by a party other than CITY, or, if less than all of the Premises is taken under such proceeding and the part taken substantially impairs the ability of YMCA to use the remainder of the Premises for the purposes permitted by this Operating Agreement, then YMCA may terminate this Operating Agreement as of the date that the condemning authority takes possession by delivery of written notice of such election within twenty (20) days after YMCA has been notified of the taking or, in 10 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 the absence thereof, within twenty (20) days after the condemning authority shall have taken possession. 16.2 Continuation of Operating Agreement After Condemnation. If this Operating Agreement is not terminated by YMCA, it shall remain in full force and effect as to any portion of the Premises remaining, and this Operating Agreement will end as of the date possession of the part taken by the public entity as to the part of the Premises that is taken. 16.3 Award. All monies awarded in any condemnation shall belong to the CITY. CITY shall have no liability to YMCA for any award not provided by the condemning authority. ARTICLE 17 SALE OR MORTGAGE BY CITY 17.1 Sale or Mortgage. Subject to YMCA's rights under this Operating Agreement, CITY may, pursuant to existing and subsequently enacted CITY ordinances and State laws, at any time and without the consent of YMCA, sell, purchase, exchange, transfer, assign, lease, encumber or convey CITY's interest in whole or in part, in the Park (collectively referred to in this Article as a "Sale"). CITY shall provide to YMCA written notice of CITY's intent to a Sale pursuant to this Article at least ninety (90) days prior to said proposed transfer. 17.2 Release on Sale. From and after a Sale of CITY's entire interest in the Premises, CITY shall be release from all liability to YMCA and YMCA's successors and assigns arising from this Operating Agreement because of any act, occurrence or omission of CITY occurring after such Sale. 17.3 Right of First Refusal. Should CITY enter into a contract for a Sale, YMCA shall have the first right to take the place of the purchaser in such transaction. Should YMCA decline to exercise its right under this provision, and CITY thereafter modify any of the terms of the Sale, YMCA's right under this provision shall be to the modified Sale, and shall continue with any subsequent modification ARTICLE 18 SUBORDINATION; ATTORNMENT 18.1 Subordination. Without the necessity of any other document being executed and delivered by YMCA, this Operating Agreement is and shall be junior, subject and subordinate to any existing or future permits or approvals issued by the United States of America or any local, State or federal agency affecting the control or operation of the Premises; YMCA shall be bound by the terms and provisions of such permits or approvals. In addition, this Operating Agreement is and shall also be subject, subordinate and junior to all mortgages, deeds of trust, and other security instruments of any kind covering the Premises, or any portion thereof, as of the Commencement Date of this Operating Agreement. 18.2 Attornment. If any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by CITY covering the 11 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 Premises, YMCA shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as owner under this Operating Agreement. The CITY and any successor in interest to CITY shall not unreasonably impair, harass, or interfere with the business operations of YMCA on the Premises during the foreclosure process or upon taking ownership of the underlying fee title of said Premises. ARTICLE 19 CITY'S RIGHT OF ACCESS 19.1 Right of Entry. CITY, its agents, employees, and contractors may enter the Premises at any time in response to an emergency, and, at reasonable hours, upon prior reasonable notice to YMCA, to (a) inspect the Premises and Improvements; (b) determine whether YMCA is complying with its obligations in this Operating Agreement (including its obligations with respect to compliance with Hazardous Materials Laws); (c) post notices of nonresponsibility or similar notices; (d) inspect the progress of construction of any improvement; or (e) make repairs that this Operating Agreement requires or allows CITY to make, or make repairs to any adjoining space or utility services, or make repairs, alterations, or improvements to any other portion of the Premises; provided, however, that all work will be done as promptly as reasonably possible and so as to cause as little interference to YMCA as reasonably possible. ARTICLE 20 NOTICES 20.1 Notices. Whenever in this Operating Agreement it shall be required or permitted that notice or demand be given or served by either party to this Operating Agreement to or on the other, such notice or demand shall be in writing, mailed or personally delivered to the other party at the addresses specified below. Mailed notices shall be sent by United States Postal Service, postage prepaid and shall be deemed to have been given, delivered and received three (3) business days after the date such notice or other communication is posted by the United States Postal Service. All other such notices or other communications shall be deemed given, delivered and received upon actual receipt. Either party may, by written notice delivered pursuant to this provision, at any time designate a different address to which notices shall be sent. Lessor: CITY OF NATIONAL CITY City Manager City of National City 1243 National City Boulevard National City, CA 91950-4301 Lessee: YMCA OF SAN DIEGO COUNTY President YMCA of San Diego County 3708 Ruffin Road San Diego, CA 92123-1812 12 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 ARTICLE 21 NONDISCRIMINATION 21.1 Nondiscrimination. YMCA hereby covenants by and for itself, its successors, assigns and all persons claiming under or through it, that this Operating Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against, or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the use, operation, or enjoyment of the Premises. ARTICLE 22 RECORDS. ACCOUNTS AND AUDITS 22.1 YMCA's Duty to Keep Records. YMCA shall, at all times during the Term, and for a period of five (5) years following expiration or earlier termination of this Operating Agreement, keep or cause to be kept, true and complete books, records and accounts of all (i) construction undertaken pursuant to the rights conferred on YMCA under this Operating Agreement, and (ii) financial transactions in the operation of all business activities, of whatever nature, conducted pursuant to the rights granted by this Operating Agreement. Such records shall also include the source and disposition of all trash and other waste collected and disposed of by YMCA in the operation of its business. Said records must be supported by source documents such as sales slips, cash register tapes, purchase invoices or other pertinent documents. 22.2 CITY's Right to Audit. All YMCA's books or accounts and records shall be kept and made available at one location within the limits of the County of San Diego. CITY shall have the right at any reasonable time to examine and perform audits of YMCA's records pertaining to (i) construction undertaken pursuant to the rights conferred on YMCA under this Operating Agreement, and (ii) its operations on the Premises, including, without limitation, any records pertaining to YMCAs use of utilities on the Premises. The cost of said audits shall be borne by CITY; however, YMCA shall provide to CITY at YMCA's expense, necessary data to enable CITY to fully comply with each and every requirement of the State of California or by the United States of America for information or reports relating to this Operating Agreement and to YMCA's use of the Premises. ARTICLE 23 GENERAL PROVISIONS 23.1 Authority. YMCA represents and warrants that it has full power and authority to execute and fully perform its obligations under this Operating Agreement pursuant to its governing instruments, without the need for any further action, and that the person executing this Operating Agreement on behalf of YMCA is the duly designated agent of YMCA and is authorized to do so. 23.2 Captions. The captions and headings appearing in this Operating Agreement are inserted for convenience only and in no way define, limit, construe, or describe the scope or intent of the provisions of this Operating Agreement. 13 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 23.2 CITY Approval. Except where stated herein to the contrary, the phrases "CITY's approval," and "CITY's written approval" or such similar phrases shall mean approval of the City Manager of National City or said person's representative as authorized by said person in writing, which approval shall not be unreasonably withheld. 23.2 Cumulative Remedies. In the event of a default under this Operating Agreement, each party's remedies shall be limited to those remedies set forth in this Operating Agreement; any such remedies are cumulative and not exclusive of any other remedies under this Operating Agreement to which the non -defaulting party may be entitled. 23.3 Entire Agreement. This Operating Agreement, together with all addenda, exhibits and riders attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof, and all prior or contemporaneous agreements, understandings and representations, oral or written, are superseded. 23.4 Exhibits. All exhibits referred to herein are attached hereto and incorporated by reference: Exhibit A: Description of the Park Exhibit B: Map of the Premises Exhibit C: Schedule of Proposed Programs Exhibit D: Deferred Maintenance 23.5 Force Majeure. If either party is prevented or delayed from performing any act or discharging any obligation hereunder, because of any and all causes beyond either party's reasonable control, including unusual delays in deliveries, abnormally adverse weather conditions, unavoidable casualties, strikes, labor disputes, inability to obtain labor, materials or equipment, acts of God, governmental restrictions, regulations or controls, any hostile government actions, civil commotion and fire or other casualty, legal actions attacking the validity of this Operating Agreement or the CITY's or YMCA's operations of the Premises, or any other casualties beyond the reasonable control of either party ("Force Majeure"), performance of such act shall be excused for the period of such delay, and the period for performance of such act shall be extended for a period equivalent to the period of such delay. Force Majeure shall not include any bankruptcy, insolvency, or other financial inability on the part of either party hereto. 23.6 Governing Law. This Operating Agreement shall be governed, construed and enforced in accordance with the laws of the State of California. 23.7 Independent Contractor. YMCA acknowledges that it is an independent contractor; that it alone retains control of the manner of conducting its activities in furtherance of this Operating Agreement; and that it, as well as any persons, contractors or agents it may employ, are not employees of CITY for any purpose. 14 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 23.8 Interpretation. The provisions of this Agreement shall be liberally construed to effectuate its purpose. The language of all parts of this Agreement shall be construed simply according to its plain meaning and shall not be construed for or against either party. 23.9 YMCA's Operating Agreement Administration. YMCA confirms that YMCA's Operating Agreement Administrator has been given full operational responsibility for compliance with the terms of this Operating Agreement. YMCA shall provide CITY with a written schedule of its normal hours of business operation on the Premises, and YMCA's Operating Agreement Administrator or a representative designated thereby shall be available to CITY during YMCA's normal business hours, to resolve problems or answer question pertaining to this Operating Agreement and YMCA's operations on the Premises. 23.10 Modification. The provisions of this Operating Agreement may not be modified, except by a written amendment signed by both parties. 23.11 Partial Invalidity. If any provision of this Operating Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Operating Agreement shall not be affected thereby. Each provision shall be valid and enforceable to the fullest extent permitted by law. 23.12 Successors & Assigns. This Operating Agreement shall be binding on and inure to the benefit of the parties and their successors and assigns, except as may otherwise be provided herein. YMCA shall not assign this agreement to any other party unless approved in writing by CITY. 23.13 Time of Essence. Time is of the essence of each and every provision of this Operating Agreement. 23.14 Waiver. No provision of this Operating Agreement or the breach thereof shall be deemed waived, except by written consent of the party against whom the waiver is claimed. IN WITNESS WHEREOF, the CITY and YMCA have duly executed this Operating Agreement as of the day and year first above written. Date: 10 YMCA OF SAN D EGO COUNTY a California nonpr.fit, puic'be;efi corporation By. Bar.Ierdeli J oherty, sident & CEO [SIGNATURES CONTINUED ON FOLLOWING PAGE] 15 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 Date: told1I5 Date: 10 THE CITY OF NATIONAL CITY a municipal corporation By: Leslie Deese, City Manager Ap', oved as to form: I 411 Cl. lCity Attorney 16 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 EXHIBITA DESCRIPTION OF THE PARK LAS PALMAS PARK & CAMACHO RECREATION CENTER 1810 E. 22nd St. (619) 336-6756 Las Palmas Park is30 acres with a swimming pool, ball fields, tennis courts, picnic areas, playground equipment and Recreation Center/gymnasium. Camacho Recreation Center contains a gymnasium with basketball courts, bleachers and scoreboard. In addition, there are three classrooms, one large office, multiple storage closets, men and women's restrooms, and a janitor's closet. NATIONAL CITY MUNICIPAL POOL 1800 E. 22nd St. (619) 336-6758 Main pool is 50 meters by 19.8 meters (8 lanes of 50 meters) including one 3 meter diving board (9.8 feet) and two 1 meter diving boards. Activity pool is 70 feet long and at its widest it is 45 feet wide with a total area of 81,000 square feet. It has 4 different spray features and a 16 foot high slide with a ride length of 134.58'. The locker rooms are enclosed by a high wall and have a large changing area. There is a main pump room adjacent to the pool along with multiple storage rooms. 17 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 City Boundary Lease Boundary Las Palmas Park EXHIBIT "B" I I I I Feet 0 75 150 300 Exhibit 'B' APN: 561-360-51-00 2.26.13 EXHIBIT C SCHEDULE OF PROPOSED PROGRAMS FOR LAS PALMAS YMCA The following is a list of possible programs that, based upon community need and input, may be operated at the Las Palmas Park site; which includes Camacho Gymnasium and Las Palmas Pool. PROGRAM SEASON AGE RANGE Progressive swim lessons Year round 3 years to 12 years Private swim lessons Year round/as requested 5 years and up (including adults) Water polo/Wet ball Year round 8 years to $14 years SPLASH! Week (5-30 minute swim lessons) Spring break (1-2 weeks/as needed) 3 years to 12 years Parent -child swim lessons Year round 6 months to 3 years Masters Swim Year round 18 years and up Lap swim Year round Must be able to pass the swim test Youth Sports (may include basketball, flag football, soccer, volleyball, tennis, footsol) Year round (or as requested by the community) 4 years to 16 years Pee -wee sports (soccer, t-ball, multi- sport) Year round 3 years to 5 years Martial Arts (may include Tae Kwon Do, Jiu Jitsu, and/or Capoiera Year round 4 years and up (including adults) Gymnastics (parent/child) Year round 18 months to 3 years Dance (such as Ballet, Jazz, Hip Hop) & Kids Fitness Programs Year Round 3 years and up Tumbling (various levels) Year round 8 years to 17 years Group Exercise classes (may include Senior Exercise programs, Water Exercise, Zumba, Yoga, Pilates, group indoor cycling, interval training, step Year round 12 years and up 19 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 aerobics, cardio kick boxing) Specialized group exercise programs (may include Team Challenge, Boot Camp, TRX training, sport specific conditioning) Year round 12 years and up Day Camp During school breaks and school holidays 5 years to 14 years Family Programming (May include Family Health & Wellness, Family Nights, and other family events) Year Round Families Teen Programs (such as Adventure Camps, ESC, Youth & Government and Leadership Development) Year Round Seasonal Teens Various Community Events and Classes such as CPR/First Aid, Lifeguarding, Healthy Kids Day Year Round Youth, Teens and Families *These programs may be potential member benefits/included as part of a membership to the YMCA. CITY USE OF PREMISES City Use of Premises (Provided at Up to 5 Events per year Varies no cost except for direct costs such including Movie in the Park as Lifeguards) and National Night Out (upon mutual written agreement & schedule) Various Community Meetings Upon Mutual Written Varies Agreement & Schedule 20 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 EXHIBIT D DEFERRED MAINTENANCE Las Palmas Pool • Replace Water Slide Booster Pump and necessary plumbing. • Upgrade natural gas supply to meet BTU demand. • Repair and/or Replace leaky valves for Recreation pool filters. • Replace chemical feed tubes and connectors. • Remove and replace the competition pool expansion joints which requires draining and filling the pool, new chemicals to balance the water and labor for brushing and vacuuming while balancing the water. • Replace broken and missing coping tiles in competition pool. • Polish competition pool tiles lane lines. • Re -plaster Recreation pool. • Repair miscellaneous deck equipment. • Replace competition pool starting platforms. • Repaint Recreation pool's spraybow feature • Replace non-functional pool lights in both the Competition pool and Recreation pool. • Replace pool covers. • Confirm conformance to Virginia Graeme Baker Act. • Replace existing pool deck. • Flush out Pool Deck Drain Lines. • Sand and Paint various exterior eves. • Repair and/or replace bench seats at various locations. • Replace Door & Frame at pool equipment room. • Adjust & replace threshold at Aquatics Lobby Door. • Service Shower Valves. • P Trap Pads (ADA). Camacho Gym Recreation Center • Remove debris from roof drains. • Install 5' Cap Sheet at Perimeter Roof. • Repair Miscellaneous Roof Penetrations. • Demolish and Install new Sheet Metal/Flashing. • Trim Trees hanging over gym roof. • Replace Closures and adjust swing on Gym Doors. • Sand and paint various wood doors. • Secure Drinking Fountain to the Wall. • Seal up Roof Top Duct Work. Estimated Total Cost for Deferred Maintenance = $690,957 21 Las Palmas Park Operating Agmt Between City and YMCA 10.15.13 CA11F4,RNIA -. NATI CAI' 3 , ificoepowerro City Of National City October 29, 2013 Baron Herdelin-Doherty, President YMCA of San Diego 3708 Ruffin Road San Diego, CA 92123-1812 Dear Baron, This letter memorializes the commencement of the Las Palmas Park Operating Agreement between the City of National City and the YMCA. Per the terms of the executed agreement the commencement will occur on November 1, 2013. Please have an authorized YMCA representative countersign below to agree and accept this date. The City of National City looks forward to a strong partnership with the YMCA and appreciates your efforts to serve our community. Brad Raulston Agreed and accepted: YMCA representative 1243 National City Boulevard; National City, California 91950 Tel.: (619) 336.4250 Fax: (619) 336.4286 braulston@nationalcityca.gov RESOLUTION NO. 2013 — 66 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE A MAINTENANCE AND OPERATING AGREEMENT WITH THE YMCA IN SUBSTANTIAL CONFORMANCE WITH THE TERMS OF THE DRAFT MAINTENANCE AND OPERATING AGREEMENT TO MANAGE AND OPERATE THE NATIONAL CITY MUNICIPAL POOL AND CAMACHO RECREATION CENTER LOCATED IN LAS PALMAS PARK WHEREAS, the City of National City owns the real property commonly known as Las Palmas Park ("Park"), located in proximity to Newell Street, between East 20th Street and East 22nd Street; and WHEREAS, the YMCA is an experienced human services organization, nationally recognized in aquatics operations and wellness activities, and is a well -respected charity in the greater San Diego community; and WHEREAS, the City desires to have YMCA operate and maintain those portions of the Park known as the National City Municipal Pool and the Camacho Recreation Center with YMCA programs serving the local community; and WHEREAS, staff has been working with the YMCA of San Diego County -South Bay via ad hoc committee and recreation working group meetings for almost two years to negotiate a maintenance and operating agreement for the National City Municipal Pool and Camacho Gym; and WHEREAS, this Maintenance and Operating Agreement includes only the pool and the gym at Las Palmas Park. It does not include any of the fields or other programming outside of the pool and the gym. The Community Services Department and the Public Works Department would continue to manage programming for El Toyon Park (recreation center, field, and courts), Las Palmas Park (fields and tennis courts), Kimball Park (Kimball Senior Center, fields, and skate park), Casa de Salud and Manuel Portillo Youth Center, and all other park space in National City, as well as all contract instructors in those parks (with the exception of the pool and gym); and WHEREAS, due to the economic downturn and budgetary reductions, the reduction in staffing in the Community Services Department and of resources has led to reduced recreation center hours and programming for our residents, as well as rising deferred maintenance costs; and WHEREAS, a partnership with the YMCA is an opportunity for the City not only to expand access to the pool and the gym, but also to save operating costs and resolve the deferred maintenance for the facilities; and WHEREAS, the YMCA is committed to structuring their pricing to fit National City resident needs, including offering scholarships for qualifying families, which is part of their national model; and WHEREAS, during the negotiation period, City and YMCA staff worked on a draft maintenance and operations agreement, which includes programs, pricing, maintenance, employee transition, deferred maintenance, and more, based on feedback from the parks ad hoc committee and the Parks, Recreation, and Senior Advisory Board ("PRAB"). Resolution 2013 — 66 Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves a partnership with the YMCA to maintain and operate the municipal pool and Camacho gymnasium, and authorizes the City Manager to execute a Maintenance and Operation Agreement in substantial conformance with both the primary deal points in the attached draft agreement and Council's input on this date. PASSED and ADOPTED this 7th day of May, 201 ATTEST: Michael R. Dalla, ity Clerk PPRO ED AS TO FORM: u: is G itua Silva City Attorn on'Morrison, May Passed and adopted by the Council of the City of National City, California, on May 7, 2013 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California C erk of the City National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2013-66 of the City of National City, California, passed and adopted by the Council of said City on May 7, 2013. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: May 7, 2013 AGENDA ITEM NO. 23 ITEM TITLE: Resolution of the City of National City authorizing the City Manager to execute a Maintenance and Operating Agreement with the YMCA consistent with the primary deal points contained in the terms of the draft Maintenance and Operating Agreement to manage and operate the National City Municipal Pool and Camacho Recreation Center located in Las Palmas Park, with the exception of specific terms. PREPARED BY: Jessica Cissel DEPARTMENT: Community Se PHONE: (619) 336.4243 Brad Raulsto EXPLANATION: SEE ATTACHED STAFF REPORT APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: n/a ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Recommend approval of the resolution to partner with the YMCA. BOARD / COMMISSION RECOMMENDATION: Parks, Recreation, and Senior Citizen Advisory Board voted unanimously to support the partnership TTACHMENTS: 1) Staff report 2) Draft Maintenance and Operating Agreement 3) Resolution STAFF REPORT FOR YMCA MAINTENANCE AND OPERATING AGREEMENT (COMMUNITY SERVICES) Introduction City staff has been working with the YMCA of San Diego County -South Bay via ad hoc committee and recreation working group meetings for almost two years to negotiate a maintenance and operating agreement for the National City Municipal Pool and Camacho Gym. The item before you seeks approval of a maintenance and operating agreement containing the deal points detailed below, and in substantial conformance with the draft agreement attached (with City Council input on certain issues). Overall, this maintenance and operating agreement would turn over the pool and Camacho gym to the YMCA for operation of programs and the maintenance of these two facilities. This maintenance and operating agreement includes only the pool and the gym at Las Palmas Park. It does not include any of the fields or other programming outside of the pool and the gym. The Community Services Department and the Public Works Department would continue to manage programming for El Toyon Park (recreation center, field, and courts), Las Palmas Park (fields and tennis courts), Kimball Park (Kimball Senior Center, fields, and skate park), Casa de Salud and Manuel Portillo Youth Center, and all other park space in National City, as well as all contract instructors in those parks (with the exception of the pool and gym). Due to the economic downturn and budgetary reductions, the Community Services Department has been working with minimal resources to sustain the programs and recreation opportunities for the community. The reduction in staffing and resources has led to reduced recreation center hours and programming for our residents, as well as rising deferred maintenance costs. If the City Council desires to continue managing the facilities and offering the current programming at the current pricing, the Community Services Department will need additional resources and staff. A partnership with the YMCA is an opportunity for the City not only to expand access to the pool and the gym, but also to save operating costs and resolve the deferred maintenance for the facilities. The YMCA is committed to structuring their pricing to fit National City resident needs, including offering scholarships for qualifying families, which is part of their national model. The YMCA also has experience and current partnerships managing recreation programs in other San Diego County cities (i.e., City of Santee). Background In 2007, National City established its Strategic Plan with goals to improve quality of life and to achieve fiscal sustainability. To achieve fiscal sustainability, the strategic plan action 2C states, "Partner with Community Organizations and Regional Agencies to Pursue Our Legislative Platform and Aggressively Seek Funding from Local, State, & Federal Sources". To improve quality of life, strategic goal 3 actions include, "Continue to Provide Recreational Programs and Community Services, Maintain Existing Parks and Public Facilities and Find Funding to Construct Park Master Plans, Partner with the Port District to Build Aquatic Center, Granger Park, and Improve Public Access to the Harbor District, and Preserve and Promote Historic Resources and Cultural Assets". 1 The City has established partnerships, and Council decisions have created the opportunity to expand partnerships to sustain programs. Established partnerships include ARTS, the Greater San Diego Boys and Girls Club in Kimball Park, and the YMCA of San Diego County -South Bay Branch in Pepper Park (Aquatics Center). After a multi -year planning effort that culminated in the adoptions of the Westside Specific Plan, the General Plan Update, and the Downtown Specific Plan Amendment, in early 2011, the Successor Agency sold bonds to build facilities to improve quality of life. At the July 5, 2011 City Council meeting, the Parks, Senior, and Youth Ad Hoc committees were initiated by Council. Since that date, recreation working group meetings have been held between the City and our potential partners, the YMCA of San Diego County -South Bay Branch and the Greater San Diego Boys and Girls Club, to discuss how the City could maximize the bond money to create sustainable quality of life facilities and programs. Because there were capital resources (bond funds), but limited operating resources, staff discussed expanding partnerships with local non -profits to sustain operations. In late October and early November of 2011, Council was provided information on the progress of the quality of life facilities plan. The first public parks ad hoc meeting took place on November 21, 2011, and included Mayor Ron Morrison, Council member Sotelo-Solis, members of the Parks, Recreation, and Senior Advisory Board (PRAB) members (who are National City residents), a Public Art Committee member, and City staff. The YMCA partnership at Las Palmas Park was discussed at that meeting, along with subsequent parks ad hoc meetings on December 13, 2011, January 19, 2012, and April 24, 2012. Additional updates were provided to PRAB. During these park ad hoc committee meetings, City staff provided reports on current programs, fees, and participation numbers, as well as facility and park maintenance costs. In addition, there was conceptual planning done by Kimley Horn and Associates to incorporate ideas and discussion by City staff, non -profits, and the public. The initial estimates for the conceptual plans at Las Palmas Park show a need for additional funding. The South Bay YMCA expressed a desire to fundraise focally to generate monies to complete the project. Because the YMCA is a non-profit, they are able to leverage funds by local fundraising campaigns resulting in more resources for a final product/facility. A draft MOU between the City and the YMCA was provided to and approved by the YMCA at their board meeting on November 30, 2011, to solidify the partnership and initiate a fundraising campaign. At the December 6, 2011 meeting, the City Council was provided an update on the YMCA Board's position and directed staff to bring the draft MOU forward for Council review in January. At the January 10, 2012 meeting, the City Council adopted Resolution No. 2012-08, approving the MOU between the YMCA of San Diego County - South Bay Branch and the City for a 12-month period of negotiation of contemplated partnership to provide sustainable programs to National City residents at Las Palmas Park. During the negotiation period, City and YMCA staff worked on a draft maintenance and operations agreement, which includes programs, pricing, maintenance, employee transition, deferred maintenance, and more based on feedback from the parks ad hoc committee and PRAB. On January 17, 2013, the YMCA presented their program plan to PRAB. PRAB voted unanimously to support the partnership with 2 the YMCA at Las Palmas Park. At a recent South Bay YMCA board meeting there was a vote to approve the terms of the draft maintenance and operating agreement. Terms of the Agreement The attached draft maintenance and operations agreement for the National City Municipal Pool and Camacho Gym includes the following deal points: • Term: Five (5) years, with a five (5) year option to extend. o The length of the term (5 years) does not raise concerns. o Unilateral option to extend: As drafted, the extension can be exercised by the YMCA if it is not in breach of the agreement. The City would not have the option to exercise an extension. The City's agreements typically provide the City the option to extend agreements either unilaterally or upon mutual agreement. The YMCA has indicated they will not agree to a mutual extension provision. • Programs: The YMCA will maintain existing levels of service, and increase programming and hours of operation at the pool and Camacho gym. • Resident Access: The YMCA agrees to provide preference to the City of National City and discounted fees to its residents. A resident will not have to be a YMCA member to have daily access to the pool or gym. They can access the facilities through a daily resident rate. The YMCA will offer a scholarship program to all National City residents who meet the income requirements. • City Access: The City can have access to Camacho gym and the pool for City community meetings upon agreement by both parties. City can use the facilities at no cost when partnering (lifeguard fees may apply for special events outside of partnerships). City recreation program participants are not required to pay fees to the YMCA. The City will have pool use for five (5) special events per year, up to five (5) hours each. • Current Rentals (school teams/leagues): The YMCA may accommodate current National City schools, swim teams, and other sports organizations at the pool. Such users shall pay for such use at a mutually agreed upon rate with the YMCA. • Employees: The YMCA will guarantee all current employees and instructors an interview. (This would affect 31 part time employees: 1 aquatics manager, 13 lifeguards, 17 recreation aides; no full time employees would be impacted.) • Annual Reporting: The YMCA will provide an annual report to the City to include National City participant numbers, total participant numbers, events coordinated, capital projects completed, total joint use time, budget, next year operating and maintenance plan and fee schedule, and any other pertinent statistics. • Notice: The YMCA will give the City notice if the pool or gym will be closed for longer than a five (5) day period. 3 • Maintenance: The YMCA will accept premises in "as is" condition. The YMCA will maintain the pool and the gym. • Deferred Maintenance: City will provide $250,000 (out of the approximate $600,000 deferred maintenance estimate) to the YMCA to address major deferred maintenance issues. The YMCA will comply with bidding requirements in addition to prevailing wage. The YMCA will provide receipts for maintenance costs. • Utilities: The YMCA will pay for electric, water, and gas utilities, as well as pool chemicals that supply the pool and gym. • Exhibit "C" lists current and expanded programs for YMCA programs as well as City access. • Indemnity: The defend and indemnity provisions are structured so that the YMCA will defend and indemnify the City for injuries, claims, damages, etc., that are a result of their improvements, operations or use at the pool or the gym, unless the injury, etc., is caused by the sole negligence or willful misconduct of the City. In addition, the City will defend and indemnify the YMCA for injuries, claims, damages, etc., that are a result of the City's improvement, operation, or use of the Park, but specifically excludes the pool and gym from the City's obligation. The City's indemnity is not required if the injury, etc., was caused by the YMCA's sole negligence or willful misconduct. • Insurance: The YMCA has provided proof of insurance, however, the YMCA will not agree to setting minimum thresholds of insurance requirements. The YMCA has indicated that it does not want to specify insurance dollar amount requirements so that should the Board change their insurance amounts, it would not affect the agreement. The City generally requires minimum insurance dollar requirements to adequately protect the City's interests in all of its agreements. • Termination: The term as currently written allows the YMCA to terminate the agreement after 12 months upon 90 days' notice and the City could terminate the agreement for cause (breach) after complying with the notice provisions contained in the default sections. The City generally requires a termination for convenience provision so that it can respond to changing needs or priorities. The YMCA has stated their reasoning is based on its investment into the premises under the agreement. • Right of First Refusal: The YMCA seeks the right of first refusal should the City seek to sell the park. Financial Impact Regardless of the state of the bond funding, there are still limited operating resources and a significant amount of deferred maintenance at the facilities. As written, the draft agreement would save the City approximately $479,426 per year. In addition, the City would be contributing a one-time payment of 4 • • • $250,000 towards the estimated $600,000 deferred maintenance costs. If the City were to continue to sustain City recreation programs without this partnership with the YMCA, there would be a need for approximately $134,414 annually to fill the two frozen recreation supervisor positions and help manage the City's recreation programs. This would create a total offset of approximately $613,840 in FY 2013/2014. The additional annual costs to the City would be personnel costs of $134,414, and ongoing deferred maintenance costs. Whether the City decides to partner with the YMCA or not, there will be at least a $250,000 deferred maintenance cost. Without the partnership, the City would need to prioritize and address the additional $350,000 worth of deferred maintenance at the pool and the gym, which is currently being evaluated through the Capital Improvements Project (CIP) process. See the budget analysis below for more detail. Community Services Transition Plan Budget Anal sis 2013 Utilities!Overhead Personnel (Rec-PT) Personnel (Rec-FT)* M & 0 (PW) M & 0 (Rec) Rec revenue Totals Recreation Division 134,414.00 134414 Camacho Rec ` $49,200 $88,273 $4,450 $6,041 $147,964 Las Palmas Pool $200,000 $127,962 $57,000 $8,000 ($61,500) $331,462 . $613,840 Ions Summary Staff has arrived at agreement with the YMCA on most terms. There are, however, certain terms we bring to your attention which differ from what we generally include in agreements. Specifically, the following terms which are discussed above and included in the attached draft would benefit from City Council input: 1. Section 1.2 — the unilateral extension of a 5 year option exercisable only by the YMCA. This would provide the YMCA the Premises for up to 10 years. This provision is currently written to allow the unilateral extension. 2. Section 1.3 —the option to terminate for convenience can be exercised by the YMCA only, and the City can terminate for cause. 3. Section 9.4 —the parties have competing language regarding insurance. The YMCA has included general language that does not set forth minimum dollar amounts for insurance requirements. The City has specified the minimum levels of coverage in effort to adequately address the potential risk and insulate the City from such risk. 4. Section 17.3 — the right of first refusal is a provision that we have not typically included in agreements related to the use of our facilities, but we do not foresee selling Las Palmas Park as a likely scenario. 5 Recommendation Staff seeks the City Council's approval of the primary deal points as discussed above and input on the four items referenced in the Summary if the City Council does not concur with the YMCA's language. As this agreement is in draft form, staff seeks Council's authorization to allow the City Manager to execute a maintenance and operation agreement in substantial conformance with the deal points above (and the attached draft agreement) and as revised by Council's input today. Accordingly, the resolution before you for approval references this authorization and the approval to partner with the YMCA to maintain and operate the municipal pool and Camacho gymnasium. 6 OPERATING AGREEMENT LAS PALMAS POOL AND CAMACHO GYM RECREATION CENTER This Operating Agreement is entered into between the CITY OF NATIONAL CITY, a municipal corporation (CITY), and YMCA OF SAN DIEGO COUNTY, a California nonprofit, public benefit corporation (YMCA), (collectively, the Parties) with reference to the following facts: RECITALS A. CITY owns the real property commonly known as Las Palmas Park, located in proximity to Newell Street, between 20th Street and 22nd Street, National City, California, as further described in Exhibit A and depicted on Exhibit B (the Park). B. YMCA is an experienced human services organization, nationally recognized in aquatics operations and wellness activities, and a well -respected charity in the greater San Diego community. B. CITY wishes to have YMCA operate those portions of the Park known as the Las Palmas Pool and the Camacho Gym Recreation Center with YMCA programs serving the local community. NOW, THEREFORE, in consideration of the foregoing facts, and in consideration of the promises and covenants hereinafter set forth, the parties agree as follows: ARTICLE 1 TERM OF AGREEMENT 1.1 Term. The term of this Operating Agreement shall be Five (5) years, commencing on the first day of the calendar month immediately following full execution of this Operating Agreement (the Commencement Date) and terminating on the anniversary of the Commencement Date five years thereafter. The Commencement Date shall be memorialized in writing and such document shall be executed by both parties. 1.2 Option to Extend Term. If YMCA is not in default of any provision of this Operating Agreement upon the expiration of the Term, YMCA may elect to extend the term of this Operating Agreement for another like period of time. 1.3 Option to Terminate. YMCA shall have the option to terminate this Operating Agreement, without cause, at any time after the first twelve (12) months after the Commencement Date upon ninety (90) days written notice to CITY. The Citesshall have the option to terminate this Operating Agreement with cause, upon compliance with the notice of default provision in Article 12,. 1.4 Annual Reporting by YMCA. YMCA shall provide annual reports to the City denoting National City participant numbers, total participant numbers, events coordinated, capital projects completed, total joint use time, budget, next year operating and maintenance plan and fee schedule, and any other pertinent statistics. ARTICLE 2 PREMISES 1 Comment [CSI]: The City has requested that the option to extend be upon Mutual Agreement. The YMCA will not agree to a mutual provision. The YMCA has indicated they want the unilateral ability to extend the term . Comment [CS2]: The City typically has a termination for convenience provision in agreements for the use of their facilities. The YMCA has indicated they will not accept a termination for convenience, but are amendable to a provision that termination could occur should they breach the agreement. 2.1 Delivery of Possession. For the purpose of operating the Las Palmas Pool and the Camacho Gym Recreation Center (the Premises) for the benefit of the citizens of National City, CITY shall deliver exclusive possession of the Premises to YMCA, subject to the covenants and conditions hereinafter set forth, on the Commencement Date. 2.2 Ownership of Personal Property and Improvements. The rights and obligations of the parties regarding the ownership of personal property and improvements on the Premises shall be as follows: 2.2.1 Ownership of Personal Property. All improvements existing on the Premises (Improvements), together with all fixtures permanently attached to the Premises (Fixtures), as of the Commencement Date shall remain the property of CITY during the Term. YMCA shall not remove any Improvements or Fixtures from the Premises nor waste, destroy, or modify any Improvements or Fixtures on the Premises, except as permitted by this Operating Agreement. 2.2.2 Ownership of Improvements and Fixtures. All of YMCA's furniture, furnishings, signs, and other personal property not permanently affixed to the Premises (Personal Property) shall remain the property of YMCA. YMCA shall, at its expense, repair any damage occasioned to the Premises or any Improvements by reason of the removal of any Personal Property. ARTICLE 3 PERMITTED USE 3.1 Permitted Uses. YMCA shall operate the Premises by providing for and facilitating the activities listed on the attached Exhibit C, which may be amended or replaced from time -to -time by agreement of the authorized representatives of the parties. 3.2 Use by Others. The YMCA may allow short term use of the Premises to other groups or organizations, subject to fees as imposed by YMCA. 3.3 Consideration. YMCA's performance under this Operating Agreement shall serve as the sole consideration due CITY for YMCA's right to use and operate the Premises. YMCA may, in its sole discretion, charge for the use of the Premises and retain any and all remuneration collected. 3,4 CITY Residents. Participants seeking day use of the Premises who prove to YMCA's satisfaction that they are Residents of CITY shall not be required to become members of YMCA and shall be offered day use at a reduced rate. 3.5. Financial Assistance. As a charitable organization, YMCA offers financial assistance to qualified participants subject to the availability of funds. YMCA shall extend financial assistance to participants at the Premises under the same terms and conditions as applied to other YMCA facilities. 3.6 Compliance with Laws. YMCA, at its sole expense, shall procure, maintain and hold available for CITY's inspection any governmental license or permit required for the proper and lawful conduct of YMCA's operation of the Premises. YMCA shall not use the Premises for any use or purpose in violation of the laws of the United States of America, or the laws, ordinances, regulations, orders or requirements of the State of California, the County of San Diego, the CITY, or of other lawful authorities. YMCA shall, at its expense, comply promptly with all applicable statutes, laws, ordinances, rules, regulations, orders, covenants and restrictions of record, and requirements in effect during the Term (Laws or Orders), regulating the use by YMCA of the Premises. 2 3.7 CITY Employees and Contract Instructors. All CITY employees and contract instructors currently working at the Premises who formally apply for employment with the YMCA for work at the Premises will be given due consideration and are guaranteed an interview. ARTICLE 4 UTILITIES 4.1 Utility Services. YMCA shall be responsible for maintaining utility services to the Premises, and shall provide and pay for all utilities or services necessary for its use and operation of the Premises during the Term, including but not limited to gas, water, electricity, trash, sewer charges and telephone. YMCA shall pay directly to the applicable utility company such charges, and CITY shall have no obligation to pay for such utility services. ARTICLE 5 REPAIRS; MAINTENANCE 5.1 YMCA's Repair and Maintenance Obligations. YMCA acknowledges that it has made a thorough inspection of the Premises and that it accepts the Premises "as -is" as of the Commencement Date, subject to the list of deferred maintenance items, attached as Exhibit D. To remediate some of those deferred maintenance items, CITY shall deposit with YMCA the sum of Two Hundred Fifty Thousand Dollars ($250,000.00) on the Commencement Date. YMCA shall pay for the costs of remediation of as many items on Exhibit D as it, in its sole discretion, deems possible using all of the deposited funds. YMCA shall give safety of the public the highest priority in deciding what items to remediate. YMCA shall expend the deposited funds no later than nine (9) months following the Commencement Date. YMCA shall provide an accounting of all expenditures made related to the remediation of the deferred maintenance items within 30 days following the exhaustion of the deposited funds, but in any event, no later than 12 months following the Commencement Date. YMCA shall provide receipts, documents, and/or contracts for all remediation using CITY funds upon request by CITY. YMCA shall comply with all applicable state and/or local procurement and contracting requirements. Thereafter, YMCA shall, at its own cost and expense, repair, maintain in good and tenantable condition, ordinary wear and tear excepted, and replace, as necessary, the Premises; provided, however, that the sum of such costs and expenses shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) during the Term, and shall not exceed Fifty Thousand Dollars ($50,000.00) during any one year of the Term. YMCA's obligations hereunder shall apply regardless of whether the repairs, restorations, and replacements are ordinary or extraordinary, foreseeable or unforeseeable, capital or noncapital, or the fault or not the fault of YMCA, its agents, employees, invitees, visitors, or contractors. All replacements made by YMCA shall be of like size, kind, and quality to the items replaced. 5.2 CITY's Right to Inspect; CITY Not Obligated to Repair or Maintain. YMCA shall permit CITY to enter the Premises at all times during usual hours of operation to inspect the same, provided, however, that such entry shall not unreasonably interfere with YMCA's operation of the Premises. Nothing contained in this Article 5, however, shall be construed as creating any duty on the part of CITY to do any work which, under any provision of this Operating Agreement, YMCA may be required to do. 3 5.3 Prevailing Wages. YMCA shall, as obligated by law, pay prevailing wages for work performed on the Premises. ARTICLE 6 ALTERATIONS 6.1 Alterations. YMCA may, at its sole cost and expense, make such alterations, replacements, additions, or changes to the Premises, or may construct additional improvements on the Premises, as YMCA may find necessary or convenient for its operation of the Premises in accordance with construction plans submitted to and approved by the CITY. 6.2 Construction Permits and Licenses. YMCA shall procure, at its sole cost and expense, all permits and licenses that are or may now or in the future become necessary or required from any local governmental agency for the proposed construction of any Alterations. 6.3 As -Built Plans. Within sixty (60) days following a request from the CITY, YMCA, its Engineer or Architect shall furnish CITY with a complete set of "As -Built" plans of any Alteration. ARTICLE 7 MECHANICS' LIENS; STOP NOTICES 7.1 Mechanics' Liens; Stop Notices. YMCA shall pay, or cause to be paid, the total cost and expense of all works of improvement, as that phrase is defined in the Mechanics Lien Law in effect at the place of construction, done by it, or caused to be done by it, on the Premises, and for all materials furnished for or in connection with any such work. If any lien or stop notice is filed against the Premises, YMCA shall cause the lien or stop notice to be discharged of record within one hundred eighty (180) days after it is filed. YMCA shall indemnify, defend, and hold CITY harmless from any and all liability, loss, damage, costs, attorneys' fees and all other expenses on account of claims of lien of laborers or materialmen or others for work performed or materials or supplies furnished for YMCA or persons claiming under YMCA. 7.2 Notice of Lien or Stop Notice. Should any claim of lien or stop notice related to YMCA's work of improvement of the Premises be filed against the Premises or any action be filed against the Premises or any action affecting the title to such property be commenced, the party receiving notice of such lien or stop notice or action shall immediately give the other party written notice thereof. 7.3 Notice of Nonresponsibility. CITY or its representatives shall have the right to post and keep posted on the Premises notices of nonresponsibility or such other notices which CITY may deem to be proper for the protection of CITY's interest in the Premises. YMCA shall, before the commencement of any work which might result in any such lien or stop notice, give to CITY written notice of its intention to do so in sufficient time to enable posting of such notices. ARTICLE 8 TAXES 8.1 Definition. "Taxes" shall mean all taxes, governmental bonds, special assessments, charges, or transfer taxes, license and transaction fees, including, but not limited to, (i) any state, local, federal income tax, or any real or personal property tax, (ii) increases in taxes attributable to YMCA's operation of the Premises, or (iii) any taxes which are essentially payments to a governmental agency, other than 4 CITY, for the right to make improvements to the Premises. YMCA recognizes and agrees that this agreement may create a possessory interest subject to property taxation and that YMCA may be subject to the payment of taxes levied on such interest. YMCA agrees to pay, before delinquency, all taxes, assessments and fees assessed or levied upon the Premises. 8.2 Responsibility for Payment of Taxes. CITY shall not be obligated to pay any Taxes accruing against YMCA on the Premises or any interest of YMCA therein before, during the Term, or any extension thereof; all such payments shall be the sole responsibility of YMCA. In addition, YMCA shall be solely responsible for payment of any Taxes levied upon any Improvements, Fixtures or Personal Property located on the Premises, to the extent that such Taxes result from the operations or other activities of YMCA upon, or in connection with, the Premises. ARTICLE 9 INDEMNIFICATION AND INSURANCE 9.1 YMCA's Indemnity. CITY shall not be liable for, and YMCA shall defend and indemnify CITY and the employees and agents of CITY (CITY Parties), against any and all claims, liability, damages, or costs (Claims) related to YMCA's improvement, operation or use of the Premises and arising either directly or indirectly from any act, error, omission or negligence of YMCA or its contractors, licensees, invitees, members, agents, servants or employees. YMCA shall have no obligation, however, to defend or indemnify CITY Parties from a Claim if it is determined by a court of competent jurisdiction that such Claim was caused by the sole or concurrent negligence or willful misconduct of CITY Parties. 9.2 CITY's Indemnity. YMCA shall not be liable for, and CITY shall defend and indemnify YMCA and the employees and agents of YMCA (YMCA Parties), against any and all claims, liability, damages, or costs (Claims) related to CITY's improvement, operation, or use of the Park, excluding the Premises, and arising either directly or indirectly from any act, error, omission or negligence of CITY or its contractors, licensees, invitees, members, agents, servants or employees. The CITY shall have no obligation to defend or indemnify YMCA Parties for Claims related to the Premises. CITY shall have no obligation, however, to defend or indemnify YMCA Parties from a Claim if it is determined by a court of competent jurisdiction that such Claim was caused by the sole or concurrent negligence or willful misconduct of YMCA Parties. 9.3 Covered Claims. The obligations of YMCA and CITY hereunder to indemnify, defend and hold each other harmless shall not apply to the extent that insurance carried by YMCA or CITY, other than any program of self-insurance carried by either party, covers any Claim. 9. 44— Insurance Obligations. Each party " yinsurancc naming the other party as an additional insured. and proof of Automobile Liability, and Workers Compensation and Employer's Liability Insurance to the other party upon request. Insurance Obligations. The YMCA. at its sole cost and exjnse. shallpurchase and maintain. when applicable, to purchase and maintain throughout the term of this ALtreement. the following checked insurance policies: A. (l If checked. Professional Liability Insurance (errors and omissions) with minimum limits of $1.000.000 per occurrence. B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Aareeitient, with a minimum coverase of $5,000.000 Comment [CS3]: The YMCA will not agree to minimum levels of coverage being specified in the agreement. combined single limit per accident. Such automobile insurance shall include owned. non -owned. and hired vehicles ("any auto ).The policy shall name the (Il Y and its officers, atents and employees as additional insureds, and a separate additional insured endorsement shall he provided. C. Commercial General Liability Insurance. vith minimum limits of $2 000 000 per occurrence and $4.000.000 aggregate. emering all bodily injury and property damage arising out of its operations under this Agreement. The policy' shall name the (IlY and its officers. agents and employees as additional insureds_ and a seprate additional insured endorsement shall he provided. The general aggregate limit must apply solely to this "project" or "location . D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of YMCA's employees and employers' liability insurance with limits of at least $1 000 00_per accident, In addition. tlhe policy shall he endorsed V4itha waiver of subrogation in favor of the City_ Said endorsement shall be provided prior to commencement of'work under this Agreement. If YMCA has no employees subject to the California Workers' Compensation and Labor laws. YMCA shall execute a Declaration to that effect. Said Declaration shall he provided to YMCA by CITY. L. The aforesaid policies shall constitute primary insurance as to the CITY. its officers, employees_ and Volunteers. so that any otheLpolicies held by_the CITY shalt not contribute to any loss under said insurance. Said policies shallprovide for thirhJ>f) days prior written notice to the CITY of cancellation or material change. F. If required insurance coverage is_provided on a "claims made rather than `occurrence' form. the YMCA shall maintain such insurance coverage for three years after iiralion of the term (and any extensions" of this Agreement. In addition. the "retro" date must be on or before the date of this Agreement. G. Insurance shall he written with only ('alifornia admitted companies that hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide. or a company equal financial stability that is approved by the C'ITY'S Risk Manager. In the event coverage is provided by non -admitted "su[ylus lines" carriers. they must he included on the most recent California 1,ist of Eligible Surplus I.ines Insurers I I,I;SI1 fist) and otherwise meet rating requirements. 11.'Ellis Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are tiled with and approved by the CITY'S Risk Manager. If the YMCA does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement. the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement asprovided herein. 1. All deductibles and self -insured retentions in excess ofS10.000 must be disclosed to and approved by the CITY. ARTICLE 10 Formatted: Left HAZARDOUS MATERIALS 10.1 Hazardous Materials Laws -Definition. As used in this Article, the term "Hazardous Materials' Laws" means any and all federal, state or local laws or ordinances, rules, decrees, orders, regulations or court decisions (including the so-called "common law"), including without limitation the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C., sec.9601 et seq.), the Hazardous Materials Transportation Act, as amended (49 U.S.C., sec.1801 et seq.), and the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C., sec. 6901 et seq.), relating to hazardous substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on, under or about the Premises, soil and ground water conditions or other similar substances or conditions. 10.2 Hazardous Materials - Definition. As used in this Section the term "Hazardous Materials" means any chemical, compound, material, substance or other matter that: a. is a flammable, explosive, asbestos, radioactive nuclear medicine, vaccine, bacteria, virus, hazardous waste, toxic, overtly injurious or potentially injurious material, whether injurious or potentially injurious by itself or in combination with other materials; b. is controlled, referred to, designated in or governed by any Hazardous Materials Laws; c. gives rise to any reporting, notice or publication requirements under any Hazardous Materials Laws, or d. is any other material or substance giving rise to any liability, responsibility or duty upon the CITY or YMCA with respect to any third person under any Hazardous Materials Law. 10.3 YMCA's Representations and Warranties. YMCA represents and warrants that, during the Term or any extension thereof, YMCA shall comply with the following provisions of this Section unless otherwise specifically approved in writing by CITY, subject to the terms and conditions of YMCA's maintenance obligations provided elsewhere in this Operating Agreement: a. YMCA shall not cause or permit any Hazardous Materials to be brought, kept or used in or about the Premises by YMCA, its agents, employees, assigns, contractors or invitees, except as required by YMCA's permitted use of the Premises in the normal course of operations; b. Any handling, transportation, storage, treatment or usage by YMCA of Hazardous Materials that is to occur on the Premises following the Commencement Date shall be in compliance with all applicable Hazardous Materials Laws; c. Any leaks, spills, release, discharge, emission or disposal of Hazardous Materials which may occur on the Premises following the Commencement Date shall be promptly and thoroughly cleaned and removed from the Premises by YMCA at its sole expense, and any such discharge shall be promptly reported in writing to CITY, and to any other appropriate governmental regulatory authorities; d. No friable asbestos shall be constructed, placed on, deposited, stored, disposed of, or located by YMCA in the Premises; e. No underground improvements, including but not limited to treatment or storage tanks, or water, gas or oil wells shall be located by YMCA on the Premises without CITY's prior written consent; f. YMCA shall conduct and complete all investigations, studies, sampling, and testing procedures and all remedial, removal, and other actions necessary to clean up and remove all Hazardous Materials on, from, or affecting the Premises in accordance with all applicable Hazardous Materials' Laws and to the satisfaction of CITY; g. YMCA shall promptly supply CITY with copies of all notices, reports, correspondence, and submissions made by YMCA to the United States Environmental Protection Agency, the United Occupational Safety and Health Administration, and any other local, state or federal authority which 7 requires submission of any information concerning environmental matters or hazardous wastes or substances pursuant to applicable Hazardous Materials' Laws; and h. YMCA shall promptly notify CITY of any hens threatened or attached against the Premises pursuant to any Hazardous Materials' Law. If such a lien is filed against the Premises, then, within the earlier of (i) twenty (20) days following such filing, or (ii) before any governmental authority commences proceedings to sell the Premises pursuant to the lien, YMCA shall either: (a) pay the claim and remove the lien from the Premises, or (b) furnish either (1) a bond or cash deposit reasonably satisfactory to CITY in an amount not less than the claim from which the lien arises, or (2) other security satisfactory to CITY in an amount not less than that which is sufficient to discharge the claim from which the lien arises. At the end of this Operating Agreement, YMCA shall surrender the Premises to CITY free of any and all Hazardous Materials and in compliance with all Hazardous Materials' Laws affecting the Premises. ARTICLE 11 ASSIGNMENT 11.1 CITY's Consent Required. YMCA shall not voluntarily or involuntarily assign or otherwise transfer all or any portion of its rights and duties under this Operating Agreement without CITY's prior written consent. Any attempted assignment or transfer without CITY's prior written consent shall be void. ARTICLE 12 DEFAULTS BY YMCA; REMEDIES 12.1 Events of Default; Remedies. If YMCA neglects or fails to perform or observe any of its obligations under the terms, covenants, or conditions contained in this Operating Agreement within thirty (30) days after written notice of default or, when more than thirty (30) days shall be required because of the nature of the default, if YMCA fails to proceed -diligently -to cure such default after written notice thereof, then YMCA shall be liable to CITY for any and all damages sustained by CITY as a result of YMCA's breach and CITY may terminate this agreement. ARTICLE 13 DEFAULTS BY CITY; REMEDIES 13.1 Events of Defaul; Remedies. If CITY neglects or fails to perform or observe any of its obligations under the terms, covenants, or conditions contained in this Operating Agreement within thirty (30) days after written notice of default or, when more than thirty (30) days shall be required because of the nature of the default, if CITY fails to proceeddiligentay-to cure such default after written notice thereof, then CITY shall be liable to YMCA for any and all damages sustained by YMCA as a result of CITY's breach and YMCA may terminate this agreement. ARTICLE 14 ABANDONMENT 14.1 Abandonment. YMCA shall not vacate or abandon the Premises at any time during the Term nor permit the Premises to remain unoccupied for a period of longer than five (5) consecutive days during the term of this Operating Agreement. These provisions shall not apply if the Premises are closed and operation is temporarily discontinued therein on account of strikes, lockouts, or similar causes beyond the reasonable control of YMCA. 8 ARTICLE 15 DAMAGE OR DESTRUCTION 15.1 YMCAs Duty to Repair Casualty. Except as provided in this article and subject to the terms and conditions of YMCA's maintenance obligations provided elsewhere in this Operating Agreement, should the Premises be damaged by fire, earthquake, or any other identifiable event of a sudden, unexpected, or unusual nature (Casualty), YMCA, at YMCA's sole cost and expense, shall, as expeditiously as reasonably possible, repair any damages to the Premises, and repair, restore and replace any such damaged or destroyed Fixtures, Improvements or Personal Property. 15.2 Construction Provisions, In the event of any reconstruction of the Premises, Fixtures or Improvements required of YMCA pursuant to this Article, YMCA shall repair the Premises, and repair or rebuild such Fixtures and Improvements, to substantially the same condition they were in immediately preceding such Casualty. 15.3 No Abatement. In the event of reconstruction, replacement or repair by YMCA pursuant to this Article, YMCA shall continue its operations on the Premises during any such period to the extent reasonably practicable from the standpoint of prudent business management, and in continuing compliance with applicable laws and regulations. YMCA shall not be entitled to any compensation or damages from CITY for loss of use of the whole or any part of the Premises, YMCA's Personal Property, or any inconvenience or annoyance occasioned by such damage, reconstruction or replacement. 15.4 Major Destruction. Notwithstanding any of the foregoing provisions of this Article to the contrary, if, at any time after the Commencement Date, (i) the Improvements are damaged or destroyed to the extent of more than twenty-five percent (25%) of their replacement cost, or (ii) the damage is such that the Improvements cannot be repaired and restored within one hundred and eighty (180) days after the Casualty, then YMCA shall have the right to terminate this Operating Agreement upon thirty (30) days' prior written notice to CITY. ARTICLE 16 EMINENT DOMAIN 16.1 Condemnation. If all of the Premises is taken under eminent domain proceedings by a party other than CITY, or, if less than all of the Premises is taken under such proceeding and the part taken substantially impairs the ability of YMCA to use the remainder of the Premises for the purposes permitted by this Operating Agreement, then YMCA may terminate this Operating Agreement as of the date that the condemning authority takes possession by delivery of written notice of such election within twenty (20) days after YMCA has been notified of the taking or, in the absence thereof, within twenty (20) days after the condemning authority shall have taken possession. 16.2 Continuation of Operating Agreement After Condemnation. If this Operating Agreement is not terminated by YMCA, it shall remain in full force and effect as to any portion of the Premises remaining, and this Operating Agreement will end as of the date possession of the part taken by the public entity as to the part of the Premises that is taken. 16.3 Award. All monies awarded in any condemnation shall belong to the CITY. CITY shall have no liability to YMCA for any award not provided by the condemning authority. 9 ARTICLE 17 SALE OR MORTGAGE BY CITY 17.1 Sale or Mortgage. Subject to YMCA's rights under this Operating Agreement, CITY may, pursuant to existing and subsequently enacted CITY ordinances and State laws, at any time and without the consent of YMCA, sell, purchase, exchange, transfer, assign, lease, encumber or convey CITY's interest in whole or in part, in the Park (collectively referred to in this Article as a "Sale"). CITY shall provide to YMCA written notice of CITY's intent to a Sale pursuant to this Article at least ninety (90) days prior to said proposed transfer. 17.2 Release on Sale. From and after a Sale of CITY's entire interest in the Premises, CITY shall be release from all liability to YMCA and YMCA's successors and assigns arising from this Operating Agreement because of any act, occurrence or omission of CITY occurring after such Sale. 17.3 Right of First Refusal. Should CITY enter into a contract for a Sale, YMCA shall have the first right to take the place of the purchaser in such transaction. Should YMCA decline to exercise its right under this provision, and CITY thereafter modify any of the terms of the Sale, YMCA's right under this provision shall be to the modified Sale, and shall continue with any subsequent modification - ARTICLE 18 SUBORDINATION; ATTORNMENT 18.1 Subordination. Without the necessity of any other document being executed and delivered by YMCA, this Operating Agreement is and shall be junior, subject and subordinate to any existing or future permits or approvals issued by the United States of America or any local, State or federal agency affecting the control or operation of the Premises; YMCA shall be bound by the terms and provisions of such permits or approvals. In addition, this Operating Agreement is and shall also be subject, subordinate and junior to all mortgages, deeds of trust, and other security instruments of any kind covering the Premises, or any portion thereof, as of the Commencement Date of this Operating Agreement. 18.2 Attornment. If any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by CITY covering the Premises, YMCA shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as owner under this Operating Agreement. The CITY and any successor in interest to CITY shall not unreasonably impair, harass, or interfere with the business operations of YMCA on the Premises during the foreclosure process or upon taking ownership of the underlying fee title of said Premises. ARTICLE 19 CITY'S RIGHT OF ACCESS 19.1 Right of Entry. CITY, its agents, employees, and contractors may enter the Premises at any time in response to an emergency, and, at reasonable hours, upon prior reasonable notice to YMCA, to (a) inspect the Premises and Improvements; (b) determine whether YMCA is complying with its obligations in this Operating Agreement (including its obligations with respect to compliance with Hazardous Materials Laws); (c) post notices of nonresponsibility or similar notices; (d) inspect the progress of construction of any improvement; or (e) make repairs that this Operating Agreement requires or allows 10 Comment [C54]: The YMCA seeks a right of first refusal in case the City desires to sell the property. CITY to make, or make repairs to any adjoining space or utility services, or make repairs, alterations, or improvements to any other portion of the Premises; provided, however, that all work will be done as promptly as reasonably possible and so as to cause as little interference to YMCA as reasonably possible. ARTICLE 20 NOTICES 20.1 Notices. Whenever in this Operating Agreement it shall be required or permitted that notice or demand be given or served by either party to this Operating Agreement to or on the other, such notice or demand shall be in writing, mailed or personally delivered to the other party at the addresses specified below. Mailed notices shall be sent by United States Postal Service, postage prepaid and shall be deemed to have been given, delivered and received three (3) business days after the date such notice or other communication is posted by the United States Postal Service. All other such notices or other communications shall be deemed given, delivered and received upon actual receipt. Either party may, by written notice delivered pursuant to this provision, at any time designate a different address to which notices shall be sent. Lessor: CITY OF NATIONAL CITY Lessee: City of National City 1243 National City Boulevard National City, CA 91950-4301 YMCA OF SAN DIEGO CITY President YMCA of San Diego County 3708 Ruffin Road San Diego, CA 92123-1812 ARTICLE 21 NONDISCRIMINATION 21.1 Nondiscrimination. YMCA hereby covenants by and for itself, its successors, assigns and all persons claiming under or through it, that this Operating Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against, or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the use, operation, or enjoyment of the Premises. ARTICLE 22 RECORDS, ACCOUNTS AND AUDITS 22.1 YMCA's Duty to Keep Records. YMCA shall, at all times during the Term, and for a period of five (5) years following expiration or earlier termination of this Operating Agreement, keep or cause to be kept, true and complete books, records and accounts of all (i) construction undertaken pursuant to the rights conferred on YMCA under this Operating Agreement, and (ii) financial transactions in the operation of all business activities, of whatever nature, conducted pursuant to the rights granted by this Operating Agreement. Such records shall also include the source and disposition of all trash and other waste collected and disposed of by YMCA in the operation of its business. Said records must be 11 supported by source documents such as sales slips, cash register tapes, purchase invoices or other pertinent documents. 22.2 CITY's Right to Audit. All YMCA's books or accounts and records shall be kept and made available at one location within the limits of the County of San Diego. CITY shall have the right at any reasonable time to examine and perform audits of YMCA's records pertaining to (i) construction undertaken pursuant to the rights conferred on YMCA under this Operating Agreement, and (ii) its operations on the Premises, including, without limitation, any records pertaining to YMCAs use of utilities on the Premises. The cost of said audits shall be borne by CITY; however, YMCA shall provide to CITY at YMCA's expense, necessary data to enable CITY to fully comply with each and every requirement of the State of California or by the United States of America for information or reports relating to this Operating Agreement and to YMCA's use of the Premises. ARTICLE 23 GENERAL PROVISIONS 23.1 Authority. YMCA represents and warrants that it has full power and authority to execute and fully perform its obligations under this Operating Agreement pursuant to its governing instruments, without the need for any further action, and that the person executing this Operating Agreement on behalf of YMCA is the duly designated agent of YMCA and is authorized to do so. 23.2 Captions. The captions and headings appearing in this Operating Agreement are inserted for convenience only and in no way define, limit, construe, or describe the scope or intent of the provisions of this Operating Agreement. 23.2 CITY Approval. Except where stated herein to the contrary, the phrases "CITY's approval," and "CITY's written approval" or such similar phrases shall mean approval of the City Manager of National City or said person's representative as authorized by said person in writing, which approval shall not be unreasonably withheld. 23.2 Cumulative Remedies. In the event of a default under this Operating Agreement, each party's remedies shall be limited to those remedies set forth in this Operating Agreement; any such remedies are cumulative and not exclusive of any other remedies under this Operating Agreement to which the non -defaulting party may be entitled. 23.3 Entire Agreement. This Operating Agreement, together with all addenda, exhibits and riders attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof, and all prior or contemporaneous agreements, understandings and representations, oral or written, are superseded. 23.4 Exhibits. All exhibits referred to herein are attached hereto and incorporated by reference: Exhibit A: Description of the Park Exhibit B: Map of the Premises Exhibit C: Schedule of Proposed Programs Exhibit D: Deferred Maintenance 23.5 Force Majeure. If either party is prevented or delayed from performing any act or discharging any obligation hereunder, because of any and all causes beyond either party's reasonable control, 12 including unusual delays in deliveries, abnormally adverse weather conditions, unavoidable casualties, strikes, labor disputes, inability to obtain labor, materials or equipment, acts of God, governmental restrictions, regulations or controls, any hostile government actions, civil commotion and fire or other casualty, legal actions attacking the validity of this Operating Agreement or the CITY's or YMCA's operations of the Premises, or any other casualties beyond the reasonable control of either party ("Force Majeure"), performance of such act shall be excused for the period of such delay, and the period for performance of such act shall be extended for a period equivalent to the period of such delay. Force Majeure shall not include any bankruptcy, insolvency, or other financial inability on the part of either party hereto. 23.6 Governing Law. This Operating Agreement shall be governed, construed and enforced in accordance with the laws of the State of California. 23.7 Independent Contractor. YMCA. acknowledges that it is an independent contractor; that it alone retains control of the manner of conducting its activities in furtherance of this Operating Agreement; and that it, as well as any persons, contractors or agents it may employ, are not employees of CITY for any purpose. 23.8 Interpretation. The provisions of this Agreement shall be liberally construed to effectuate its purpose. The language of all parts of this Agreement shall be construed simply according to its plain meaning and shall not be construed for or against either party. 23.9 YMCA's Operating Agreement Administration. YMCA confirms that YMCA's Operating Agreement Administrator has been given full operational responsibility for compliance with the terms of this Operating Agreement. YMCA shall provide CITY with a written schedule of its normal hours of business operation on the Premises, and YMCA's Operating Agreement Administrator or a representative designated thereby shall be available to CITY during YMCA's normal business hours, to resolve problems or answer question pertaining to this Operating Agreement and YMCA's operations on the Premises. 23.10 Modification. The provisions of this Operating Agreement may not be modified, except by a written amendment signed by both parties. 23.11 Partial Invalidity. If any provision of this Operating Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Operating Agreement shall not be affected thereby. Each provision shall be valid and enforceable to the fullest extent permitted by law. 23.12 Successors & Assigns. This Operating Agreement shall be binding on and inure to the benefit of the parties and their successors and assigns, except as may otherwise be provided herein. YMCA shall not assign this agreement to any other party unless approved in writing by CITY. 23.13 Time of Essence. Time is of the essence of each and every provision of this Operating Agreement. 23.14 Waiver. No provision of this Operating Agreement or the breach thereof shall be deemed waived, except by written consent of the party against whom the waiver is claimed. 13 IN WITNESS WHEREOF, the CITY and YMCA have duly executed this Operating Agreement as of the day and year first above written. Date: YMCA OF SAN DIEGO COUNTY a California nonprofit, public benefit corporation By: Baron Herdelin-Doherty, President & CEO THE CITY OF NATIONAL CITY a municipal corporation Date: By: Approved as to form: City Attorney Date: By: 14 EXHIBIT A DESCRIPTION OF THE PARK LAS PALMAS PARK & CAMACHO RECREATION CENTER 1810 E. 22nd St. (619) 336-6756 Las Palmas Park is30 acres with a swimming pool, ball fields, tennis courts, picnic areas, playground equipment and Recreation Center/ gymnasium. Camacho Recreation Center contains a gymnasium with basketball courts, bleachers and scoreboard. In addition, there are three classrooms, one large office, multiple storage closets, men and women's restrooms, and a janitor's closet. NATIONAL CITY MUNICIPAL POOL 1800 E. 22nd St. (619) 336-6758 Main pool is 50 meters by 19.8 meters (8 lanes of 50 meters) including one 3 meter diving board (9.8 feet) and two 1 meter diving boards. Activity pool is 70 feet long and at its widest it is 45 feet wide with a total area of 81,000 square feet. It has 4 different spray features and a 16 foot high slide with a ride length of 134.58'. The locker rooms are enclosed by a high wall and have a large changing area. There is a main pump room adjacent to the pool along with multiple storage rooms. 15 EXHIBIT B MAP OF THE PREMISES 16 EXHIBIT C SCHEDULE OF PROPOSED PROGRAMS FOR LAS PALMAS YMCA The following is a list of possible programs that, based upon community need and input, may be operated at the Las Palmas Park site; which includes Camacho Gymnasium and Las Palmas Pool. PROGRAM SEASON AGE RANGE Progressive swim lessons Year round 3 years to 12 years Private swim lessons Year round/as requested 5 years and up (including adults) Water polo/Wet ball Year round 8 years to $14 years SPLASH! Week (5-30 minute swim lessons) Spring break (1-2 weeks/as needed) 3 years to 12 years Parent -child swim lessons Year round 6 months to 3 years Masters Swim Year round 18 years and up Lap swim Year round Must be able to pass the swim test Youth Sports (may include basketball, flag football, soccer, volleyball, tennis, footsol) Year round (or as requested by the community) 4 years to 16 years Pee -wee sports (soccer, t-ball, multi- sport) Year round 3 years to 5 years Martial Arts (may include Tae Kwon Do, Jiu Jitsu, and/or Capoiera Year round 4 years and up (including adults) Gymnastics (parent/child) Year round 18 months to 3 years Dance (such as Ballet, Jazz, Hip Hop) & Kids Fitness Programs Year Round 3 years and up Tumbling (various levels) Year round 8 years to 17 years Group Exercise classes (may include Senior Exercise programs, Water Exercise, Zumba, Yoga, Pilates, group indoor cycling, interval training, step aerobics, cardio kick boxing) Year round 12 years and up 17 Specialized group exercise programs (may include Team Challenge, Boot Camp, TRX training, sport specific conditioning) Year round 12 years and up Day Camp During school breaks and school holidays 5 years to 14 years Family Programming (May include Family Health & Wellness, Family Nights, and other family events) Year Round Families Teen Programs (such as Adventure Camps, ESC, Youth & Government and Leadership Development) Year Round Seasonal Teens Various Community Events and Classes such as CPR/First Aid, Lifeguarding, Healthy Kids Day Year Round Youth, Teens and Families *These programs may be potential member benefits/included as part of a membership to the YMCA. CITY USE OF PREMISES City Use of Premises (Provided at Up to 5 Events per year Varies no cost except for direct costs such including Movie in the Park as Lifeguards) and National Night Out (upon mutual written agreement & schedule) Various Community Meetings Upon Mutual Written Varies Agreement & Schedule 18 RESOLUTION NO. 2013 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE A MAINTENANCE AND OPERATING AGREEMENT WITH THE YMCA IN SUBSTANTIAL CONFORMANCE WITH THE TERMS OF THE DRAFT MAINTENANCE AND OPERATING AGREEMENT TO MANAGE AND OPERATE THE NATIONAL CITY MUNICIPAL POOL AND CAMACHO RECREATION CENTER LOCATED IN LAS PALMAS PARK WHEREAS, the City of National City owns the real property commonly known as Las Palmas Park ("Park"), located in proximity to Newell Street, between East 20th Street and East 22nd Street; and WHEREAS, the YMCA is an experienced human services organization, nationally recognized in aquatics operations and wellness activities, and is a well -respected charity in the greater San Diego community; and WHEREAS, the City desires to have YMCA operate and maintain those portions of the Park known as the National City Municipal Pool and the Camacho Recreation Center with YMCA programs serving the local community; and WHEREAS, staff has been working with the YMCA of San Diego County -South Bay via ad hoc committee and recreation working group meetings for almost two years to negotiate a maintenance and operating agreement for the National City Municipal Pool and Camacho Gym; and WHEREAS, this Maintenance and Operating Agreement includes only the pool and the gym at Las Palmas Park. It does not include any of the fields or other programming outside of the pool and the gym. The Community Services Department and the Public Works Department would continue to manage programming for El Toyon Park (recreation center, field, and courts), Las Palmas Park (fields and tennis courts), Kimball Park (Kimball Senior Center, fields, and skate park), Casa de Salud and Manuel Portillo Youth Center, and all other park space in National City, as well as all contract instructors in those parks (with the exception of the pool and gym); and WHEREAS, due to the economic downturn and budgetary reductions, the reduction in staffing in the Community Services Department and of resources has led to reduced recreation center hours and programming for our residents, as well as rising deferred maintenance costs; and WHEREAS, a partnership with the YMCA is an opportunity for the City not only to expand access to the pool and the gym, but also to save operating costs and resolve the deferred maintenance for the facilities; and WHEREAS, the YMCA is committed to structuring their pricing to fit National City resident needs, including offering scholarships for qualifying families, which is part of their national model; and WHEREAS, during the negotiation period, City and YMCA staff worked on a draft maintenance and operations agreement, which includes programs, pricing, maintenance, employee transition, deferred maintenance, and more, based on feedback from the parks ad hoc committee and the Parks, Recreation, and Senior Advisory Board ("PRAB"). Resolution 2013 — Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves a partnership with the YMCA to maintain and operate the municipal pool and Camacho gymnasium, and authorizes the City Manager to execute a Maintenance and Operation Agreement in substantial conformance with both the primary deal points in the attached draft agreement and Council's input on this date. PASSED and ADOPTED this 7th day of May, 2013. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney May 7th, 2013 National City Council Members We wish to express our concerns to you regarding the pool on 22"d Street. Many of us take Aquatic Aerobics three times a week at this pool. Because we are mostly seniors, this is very beneficial in keeping us flexible and healthy. We currently pay $1.50 a day (or $1.00 if we purchase a 30-day pass). We have two concerns on the projected partnership with the YMCA: One, of course, is that most of us can't afford to pay a lot more for these classes. This is not a wealthy neighborhood and most of us only have our social security to live on. Please keep this in mind as you listen to the proposal from the YMCA. We need you to look for options to keep the cost of these classes lower for us. We have been advised that you have allocated $30,000 to the Learn to Swim Program this year but, if we understand correctly, nothing has been allocated for the Aquatic Aerobic classes. Our second concern is the employees that work at this pool and instruct us three times a week. These associates are kind to us and treat us with respect. Please make sure they keep their jobs. The dedication with which they perform their jobs would be very hard to replace. Concerned , y� j caLL- D -� 1l � 7x //ieee-eitA4-e-Le- 41e 10 OLLVH JO 1110 n r l m May 5, 2013 Respectfully, Peggy Hupp (619) 585-8520 Mayor of National City National City Council Members YMCA Representatives I would like to tell you a little bit about the Aquatic Aerobics sessions. Tue, Thurs, and Sat 10:15 — 11:00 am. Most of the people are retired seniors on fixed incomes. Many of us are overweight and use this method to assist us in getting our much needed exercise. We look upon it as an excellent way to tone our muscles while we are dieting. Others find it helpful in maintaining their weight loss. Two people come in wheel chairs. One needs mechanical assistance to get into the pool. I have heard some mention how much the water and exercise relieves the muscle and joint pains that come with aging or from past surgeries. You aren't there yet, so you may not have considered this important benefit. After the class we free swim for a while. During this time I have come to the following conclusions. This class is a great way for the many single men and women to get out of the home and enjoy the companionship of others about the same age and going through the same ordeals. It is a much better way to talk with people other than salesmen that come to the door. And it is far safer. I have heard them discuss the various medical and other appointments they make. They will only make them on days or hours around the class. The SAT session increases with those who work. We all feel that the class is a major benefit and would like to see it remain available to us. We have a great time with the lifeguards who instruct the program. They do an excellent job. They vary the workouts so we use different muscles. They are patient in explaining how to do the exercises to new members or new exercises. They joke with us and seem to really like us and what they do. We do not want to lose them. Unfortunately several members of the class are away on a prior arranged trip. Several of them would have come tonight if they were in town. I have submitted a letter they o prepared and signed. Thank you for listening to me. I only have one other comment. The water coldrn 15? warmer. A Q, - n rr rn rn r -, n -{ CD 5/7/2013 City of National ity & YMCA artnership C0,111, PreseufBI 1011 riay 7, All ck1149p11/4 NATIOgia CITY mcouoNdc. 1 5/7/2013 Timeline • Spring 2011- City sold bonds to provide capital funding for Las Palmas Park • Spring 2011- Staff began to look into partnership options for sustainable operating for the long-term • July 5, 2011- City Council initiated the Parks Ad Hoc Committee • November 2011-April 2012 Parks Ad Hoc Meetings • January 2012- City Council approved MOU with the YMCA for a 12 month period of negotiation of contemplated partnership to provide sustainable programs at the pool and gym • January 2013- YMCA presented the program plan to the Parks, Recreation, and Senior Advisory Board (PRAB). PRAB voted unanimously to support the partnership • May 7, 2013- Draft maintenance and operating agreement to Council Partnership Basics: • The draft agreement includes only the municipal pool and Camacho Recreation Center. • The YMCA could continue existing programming as well as expanded program opportunities and expanded hours of operation. • Annual savings to the City to partner with the Y is approximately $613,840. • The City would incur a one-time investment of $250,000 toward deferred maintenance. • If the City continues its current operation it would require an additional $134,414 per year plus the cost of an estimated $600,000+ in deferred maintenance. • The Y will provide all current employees affected by the partnership a guaranteed interview. 2 5/7/2013 WE SEE STRENGTH IN COMMUNITY • The Y is community centered. We have been responding to community needs since our founding in 1844. - At the South Bay Y over 300 policy, program and fund raising volunteers lead our Y to respond to community needs for youth deve►opment, healthy living and social responsibility. • The Y brings people together: - Currently over 4,000 members and 50,000 residents - over half of which are children - learn, grow, and thrive at our South Bay Family Y. - Over 500 staff members connect people of all ages and backgrounds to meet community needs. 3 5/7/2013 THE Y NURTURES POTENTIAL 1. THE Y BELIEVES THAT EVERYONE DESERVES A CHANCE TO SUCCEED — NO MATTER THEIR BACKGROUND OR INCOME. In addition to providing affordable programs and services, the Y provides financial assistance by reducing fees or subsidizing those who cannot afford the full fee. Our Y collectively attracts over $475,000 in funding annually in support of our cause. • In 2011-2012, more than $500,000 was given in financial assistance and program subsidies to help our neighbors in need. 2. The Y seeks to increase resources to address unmet community needs and has a very successful record of community collaborations and partnerships. 4 5/7/2013 How the Y operates and what we bring to a partnership with the City of National City • As a nonprofit charitable organization, the Y has had to develop very practical and proven approaches to serving the broadest range of the population as possible and still remaining economically viable. • The Y offers its experience in financial development to provide assistance to those in need. • The Y would make available its experience and expertise in capital, project planning, project expertise and facility management. • The Y will provide detailed reporting on the outcomes of the partnership. Benefits (Continued) • The Y is committed to providing high quality programs and services, well trained personnel and well equipped and maintained facilities. A high value is placed on satisfaction and retention. • The Y brings established systems of accountability in customer care, staffing, training and operation of the facilities. • The Y has learned economies of scale and has developed centralized services both on a local and national basis that would be available in the operation of the Las Palmas Facilities. 5 5/7/2013 Benefits (continued) The YMCA's access to resources includes: Personnel Training and certification programs Human Resource Management Financial Development/Fundraising and Grant Writing • Finance and Fiscal Management • Marketing and Communications . Facility Planning, operations and management Technology • Program Development and Management Key Elements of our Successful Partnership The Y will provide programs and services at the Las Palmas Pool and Camacho Gymnasium and Recreation Center 6 5/7/2013 New & Expanded Programs - Pool Existing City Programs at Las Palmas Municipal Pool +Learn to Swim •Open Swim *Rentals •Classes *Aquacize •Adult Lap Swim Expanded Y Programs *Swim Lessons •Splash Week *Parent -Child Swim •Masters Swim & Swlm Team •LapSwimming *Introductory Water Polo/Wet Ball •Open Swimming •Mu!tipie Water Exercise Programs •Therapeutic Swim •Collaboration & Partnerships New & Expanded Programs - Camacho Gym Existing Programs • After School Clubs • Youth Sports • Contractual Classes • Rentals • Open Gym - Basketball & Volleyball • Summer Camps Expanded Y Program Opportunities • Youth Sports • Pee Wee Sports • Martial Arts • Tumbling/Gymnastics • Health & Wellness Programs including multiple Group Exercise programs and specialized group exercise programs • Day Camp (Year Round) • Dance • Family Programs • Senior Programs • Teen Programs 7 5/7/2013 Expanded Hours •Current Operation •Las Palmas Municipal Pool - approximately 2,850 hours per year •Camacho Gym & Recreation Center - approximately 2,000 hours per year •Expanded Y Operation - (at full operation) •Las Palmas Municipal Pool - approximately 3,500 hours per year •Camacho Gym & Recreation Center - approximately 3,570 hours per year Pricing As d non-profit public benefit corporation the standard the sr"MCA is held to is that programs and services must be generally affordable. Tli , YMCA sets its fees for programs based upon the costs associated vith operating those programs. u ,rldition to the services being aftordable, the YMCA provides financial assistance by reducing fees or subsidizing those that c.innot Safford the full fee established for YMCA programs and serviees. fhe YMCA v4111 provide multiple pricing strategies to serve the greatest nuniirer of people including resident pricing, non resident pricing, membership and day use or bundled packages. 8 5/7/2013 Employees • The YMCA of San Diego County's vision and goal is to be an employer of choice. • The Y will do its very best to assist current City employees in the transition. • All National City employees who apply for positions at the Y will be guaranteed an interview. • The YMCA will provide current employees opportunity to attend informational meetings such as a hiring workshop or career fairs. • The YMCA provides opportunities for career advancement and extended training opportunities. • Y employees have the opportunity to earn merit increases on an annual basis. In summary... The YMCA partnership would benefit the City of National City and ail who live and work in National City by: Sound fiscal planning and management practices aimed at establishing the least possible dependence on the City's general revenues. Experience in fund raising and in securing additional revenues for financial assistance and program subsidies. Expertise in the development, construction, operation and maintenance of facilities. Maintenance of high quality and responsive programs and services. Links to local and national resources • High quality Human resource management and training. • A collaborative approach to meeting the needs of residents. • The Y is committed to having a positive impact and being an integral part of the community. 9 5/7/2013 10 CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950 619-336-4228 phone / 619-336-4229 fax Michael R. Dalla, CMC - City Clerk YMCA OF SAN DIEGO COUNTY National City Municipal Pool & Camacho Recreation Center Maintenance & Operating Agreement Denise Davis (Planning) Forwarded Copy of Agreement to YMCA of San Diego County