MEETING DATE:
April 8, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9423 - TRANSITION OF THE CITY’S AQUATICS PROGRAMMING FROM IN-HOUSE SERVICE DELIVERY TO A CONTRACTOR-PROVIDED MODEL, AND AUTHORIZING THE CITY MANAGER TO APPROPRIATE FUNDS IN THE FISCAL YEAR 2025-26 OPERATING BUDGET WITH RESPECT TO THE SAME
Body
Recommendation
Recommendation
ADOPT a resolution granting the City Manager authority to negotiate and execute agreements necessary to transition the City’s aquatics programming to a contractor-provided model, and to appropriate funds in the Fiscal Year 2025-26 operating budget.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Dynamic and Responsive Service Delivery
Planning for the Future
Good Governance
Relevant Department Goal
Deliver high-quality, accessible recreation programming to the San Marcos community
Executive Summary
By providing aquatics programming and access to public swimming pools, the City of San Marcos fulfills two important needs: teaching people to be safe in the water and promoting the health and wellness of the San Marcos community.
In recent years, city staff have faced several challenges in delivering on these needs:
• A nationwide shortage of lifeguards and general market competition for aquatics staff have made it difficult to attract and retain staff.
• Due to vacancies and turnover in key Parks & Recreation full-time management roles, customer service and program stability have suffered.
• Addressing these issues has required significant time, pulling Parks & Recreation Department staff and other city staff from other programs and services.
Because of these challenges, staff has concerns about the city’s current ability to deliver high quality, consistent aquatic programs and pool access, especially as the city prepares for the busy summer season. Staff evaluated options to address these needs, including a comprehensive best value analysis comparing the city’s existing model and a contractor-led model. Based on the findings, staff recommends transitioning to a contractor-provided model.
Discussion
Staff evaluated two options for aquatic programming: continued in-house delivery and contracting the program to a qualified vendor. The evaluation criteria included a cost comparison as well as qualitative factors. Staff found the contractor-led model to have several advantages:
|
|
In-House Model |
Contractor-led model |
|
Implementation timing |
Cannot stand up a program in time for summer |
Has staff resources to immediately take over operations without interruption |
|
Resources |
Lack ability to attract staffing needed |
Has extensive network of trained instructors and lifeguards |
|
Expertise |
Have not been able to attract and retain an experienced aquatics supervisor |
Extensive experience managing aquatics programs, including marketing, scheduling and programming |
|
Service |
Lack of staffing has diminished customer service and the overall level of service |
Provides a professional and consistent experience for residents |
|
Lessons |
Have had to cancel lessons at the last minute due to staffing |
Will provide reliable staffing and likely will expand lesson availability |
|
Scalability |
Less flexibility in adding and reducing staffing based on needs |
Has a large network of pool facilities and programs. Can assign resources where they are needed |
|
Efficiency |
Operating aquatic programs requires resources from other city departments, especially HR |
Specializes only in aquatic programs and will handle all staffing and the indirect costs associated with maintaining a trained aquatic workforce |
|
Risk |
Aquatic programs expose the city to liability and other legal risks |
Contractor assumes risk, while meeting the city’s high standards for safety |
|
Employees |
Part time staff may not work more than 999 hours, and many often want more. Wages based on tenure and fixed |
Contractor will hire all city aquatic staff interested in continuing in their roles, offering higher compensation, opportunity for more hours and incentive-based bonuses and increases |
|
Net cost |
$467,696 |
$470,597 |
Staff recommends proceeding with a sole source, negotiated contract process due to the limited number of vendors who offer this specialized service and the time-sensitive nature of this procurement to prevent service-disruption and risk-mitigation at the pool sites. This resolution would authorize the City Manager to finalize, negotiate and execute the contract with the vendor.
Environmental Review
This action is not a “Project” as defined by Section 15378 of the CEQA Guidelines and is therefore not subject to environmental review pursuant to CEQA Guidelines section 15060(c)(3).
Fiscal Impact
Approval of this resolution will authorize the City Manager to enter into an agreement with a contractor for aquatics program delivery and appropriate necessary funds in the FY 2024-25 operating budget. Funding needed for the FY25-26 will be added to the annual budget request to be presented to council. The anticipated contract cost is approximately $600,772 and will be offset in part by estimated revenue of $130,125. The transition will also reduce internal overhead costs, as well as internal staffing and HR-related costs.
Attachment(s)
Resolution
Prepared by: Darren Chamow, Acting Director of Parks & Recreation
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager