2019 DRD - Fritz Burns Pool Management and Operations4Q�r�
June 7, 2019
Mr. Kevin Kalman
General Manager
Desert Recreation District
45305 Oasis Street
Indio, CA 92201
Re: Management and Operations Agreement for Frtiz Burns Pool
Dear Mr. an,
I am transmitting this letter to follow-up to our phone conversation regarding the
Management and Operations Agreement for Fritz Burns Pool (Agreement) between the
Desert Recreation District (DRD) and the City of La Quinta (City). After the City Council
approved this agreement on May 7, 2019, we mutually discussed that that the City Council
modified the work program and related cost parameters during said Council meeting. You
informed me that these modifications may have altered the terms DRD agreed to for the
Fritz Burns Pool operations. I would like to clarify the City's intent and understanding of
the business terms. Subsequent discussions with individual City Council Members confirmed
the following understanding of the City's position:
Term: The initial term of this Agreement shall run from June 15, 2019 to May 31,
2020; the Agreement may annually be extended for two additional years but only
upon mutual agreement of both parties.
Quarterly Check -in: As requested by the City Council on May 7, 2019, DRD and City
staffs will meet and review the pool operations and associated expenses on a
quarterly basis, with the first meeting/evaluation occurring in September 2019.
Subsequently, the City Council shall receive an update, with the first update
occurring at the October 1, 2019 City Council meeting.
City Fritz Burns Pool Budget: On May 7, 2019, the City Council directed staff to
budget $100,000 for fiscal 2019/20 to fund non -maintenance pool operations. The
revised DRD pool operations budget (based upon discussions between Maureen
Archuleta from DRD and Robert Ambriz with the City) is $140,999; given that the
first quarterly review will occur in October after the summer pools season ends:, both
DRD and the City will gain an understanding of net operating costs (actual program
costs less program fee income), which the City Council will review at their October
ta aiKra
1, 2019 meeting. If the City's budget must then be adjusted based upon both parties
understanding of the fall, winter and spring pool programming, the City will be in a
position to do so before additional programming commitments are incurred by either
pa rty.
• Agreement Termination: Either party may terminate the Agreement upon 30-day
notice.
I trust that this clarifies the City's understanding of the Agreement. If needed, the City will
process an amendment if DRD feels this is necessary. I suggest this occur in July 2019 so
that we may together ensure that pool operations are underway in June 2019. Please
contact me with questions or concerns.
S1nC rely,
4 rank Spevacek
City Manager
cc: La Quinta City Council
Gilbert Villalpando, Acting Facilities Director
Robert Ambriz, Parks Superintendent