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Home My WebLink AboutStaff Report 2303-1081CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, March 27, 2023 Council Chambers & Hybrid 5:00 PM Agenda Item 8.Approval of Contract Amendment Number One (1) with Team Sheeper, Inc., Authorizing One-Time Payment not-to-exceed $85,000 for Salaries Associated with the Rinconada Pool 45-day Closure for Replastering; CEQA status – not a project 1 8 2 1 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Community Services Meeting Date: March 27, 2023 Report #:2303-1081 TITLE Approval of Contract Amendment Number One (1) with Team Sheeper, Inc., Authorizing One- Time Payment not-to-exceed $85,000 for Salaries Associated with the Rinconada Pool 45-day Closure for Replastering; CEQA status – not a project. RECOMMENDATION Staff recommends that City Council approve and authorize the City Manager to execute the contract amendment between the City of Palo Alto and Team Sheeper, Inc., for compensation in the amount of $85,000 for salaries associated with the Rinconada Pool 45-day closure for replastering. During this closure, Team Sheeper, Inc. will be unable to offer programming for both the play and performance pools at Rinconada Park. BACKGROUND/DISCUSSION The City of Palo Alto’s Public Works Department will oversee the replastering project of the performance and play pools at Rinconada1 . The project started the week of March 6, 2023 and is scheduled for 45 calendar days. The replastering project is necessary as the surface is failing in both pools and could result in a shutdown by the Santa Clara County Health Department until improved. In addition to the replastering, other maintenance upgrades include servicing the sand filters, and replacing plumbing valves, basket strainers, pump impellers, float valves, make up water valves and light fixtures in the pool. The project will require both pools at Rinconada to be closed during this period. Team Sheeper provides swim lessons and other aquatics programs at the Rinconada Pool under 1 See staff report from December 19, 2022 at https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20221219/20221219pccsm- amendedtime.pdf#page=26 1 8 2 1 a revenue contract with the City.2 The City does not pay Team Sheeper directly for its services; rather, Team Sheeper’s compensation comes directly from the fees it charges for its programs. The City receives a percentage of this based on yearly revenue. In Fiscal Year 2022, the City’s revenue share was $15,085. Team Sheeper provides an annual report to the Parks and Recreation Commission in January of each year3. The amendment is intended to allow Team Sheeper to maintain their staffing and bridge this period when it will have no revenue during the temporary closure. Team Sheeper employs 78 people to serve Palo Alto, of which 6 are shared with other programs. Many of Team Sheeper’s staff who provide direct services to Palo Alto residents are full time, salaried employees and will be impacted by the Rinconada shutdown. Ensuring continuity of their employment during this shutdown period not only supports employees of the small business but will also allow for a swift and smooth opening with staff ready to resume services once the maintenance work is complete. If staff were to be laid off or resign due to the closure, the pool would need to be closed for a longer period, or reopened on a limited schedule until Team Sheeper could recruit and hire more staff. During the closure period, pool managers are working on summer programming and several of Rinconada Pool staff are assisting at Burgess Pool in Menlo Park as needed. This does not increase revenue at Burgess Pool because no additional programs have been added. The amount of $85,000 has been developed cooperatively between staff and Team Sheeper in order to meet payroll obligations only and does not include other costs such as health insurance, workers’ compensation, dues and subscriptions for registration software, payroll services, and other costs that Team Sheeper will still incur during this period. FISCAL/RESOURCE IMPACT A Budget Amendment was brought forward and approved by Council on February 13, 2023, as a part of the Mid-Year Budget Review Process (CMR 2212-0515). $85,000 in additional funding was appropriated to the Community Services Department Operating Budget for FY 2023 specifically for this purpose. No additional budgetary action is required. STAKEHOLDER ENGAGEMENT Team Sheeper has been communicating with users of Rinconada Pool and will continue to provide updates on the status of the project through their webpage and newsletter. They have created an FAQs page on their website here: https://paloaltoswim.com/welcome/pool- replaster-project-faq/ including a list of other pools available for use. To recognize the impact to residents who utilize Rinconada on a regular basis, Team Sheeper will be offering a reopening 2 See staff report from December 10, 2018 at https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2018/9909.pdf?t=62283.26 3 2022 Aquatics Annual Report (for the period January – October 2022) can be found at https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/parks-and- recreation-commission/agendas-minutes/2023-agendas-and-minutes/1-jan/2022-palo-alto-aquatics-annual- report.pdf 1 8 2 1 special to all Palo Alto Resident Lap and Masters swimmers of 30% off their monthly membership for one month. ENVIRONMENTAL REVIEW Approval of this amendment does not constitute a Project as defined by the California Environmental Quality Act. ATTACHMENTS Attachment A: Team Sheeper, Inc. Contract; C19173035 Amendment No. 1 APPROVED BY: Kristen O'Kane, Community Services Director Vers.: Aug. 5, 2019 Page 1 of 3 AMENDMENT NO. 1 TO CONTRACT NO. C19173035 BETWEEN THE CITY OF PALO ALTO AND TEAM SHEEPER, INC. This Amendment No. 1 (this “Amendment”) to Contract No. C19173035 (the “Contract” as defined below) is entered into as of March 6, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TEAM SHEEPER, INC., a California corporation, located at 501 Laurel Street, Menlo Park, CA 94025 (“CONTRACTOR”). CITY and CONTRACTOR are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing aquatics services for the City of Palo Alto offered at Rinconada Pool, 777 Embarcadero Road, Palo Alto, CA 94301 and other pools in Palo Alto. as detailed therein. B. The Parties now wish to amend the Contract in order to increasing the compensation by $85,000 for costs associated with the Rinconada Pool closure for replastering. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C19173035 between CONSULTANT and CITY, dated November 26, 2018 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 5. COMPENSATION FOR ORIGINAL TERM. of the Contract is hereby amended to read as follows: “5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any:  CITY SHALL PAY CONTRACTOR: Eighty Five Thousand Dollars ($85,000.00) as a one-time payment related to the Rinconada Pool closure in Spring 2023.  CONTRACTOR SHALL PAY CITY: See Exhibit C – Schedule of Fees DocuSign Envelope ID: 008F406D-9047-4C11-A7B0-4E52786EEC0C Vers.: Aug. 5, 2019 Page 2 of 3 SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 008F406D-9047-4C11-A7B0-4E52786EEC0C Vers.: Aug. 5, 2019 Page 3 of 3 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee TEAM SHEEPER, INC. Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: Attachments: None DocuSign Envelope ID: 008F406D-9047-4C11-A7B0-4E52786EEC0C Tim Sheeper CEO Carole Hayworth CFO