2017 Dec 14 - CC MIN SPC SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
EL SEGUNDO UNIFIED SCHOOL DISTRICT BOARD OF EDUCATION
TUESDAY, DECEMBER 14, 2017
EL SEGUNDO POLICE DEPARTMENT
EMERGENCY OPERATIONS CENTER (EOC)
348 Main St., EI Segundo, CA 90245
6:00 PM
6:00 P.M. SESSION
CALL TO ORDER— Mayor Fuentes
PLEDGE OF ALLIGIANCE — Emilee Layne, ESUSD Board President
ROLL CALL
Mayor Fuentes - Present
Mayor Pro Tem Boyles - Present
Council Member Dugan - Present
Council Member Brann - Present
Council Member Pirsztuk - Present
PUBLIC COMMUNICATION — (Related to City Business Only— 5 minute limit per
person, 30 minute limit total)
Michelle Keldorf, resident, encourage council and school board to continue to work
together for the benefits of the community as a whole.
Barbara Briney, resident, expressed her concerns about the Plunge and thanked
Richard Lundquist for his contribution.
Melissa McCaverty, resident, expressed her concerns about the Plunge.
SPECIAL ORDERS OF BUSINESS:
Greg Carpenter, City Manager, introduced the facilitator, Karen Orlansky, Management
Partners.
Karen Orlansky, facilitator, stated she will be working from the agenda attached to the
City's agenda.
1. Consideration and possible action regarding those items set forth on Exhibit 1
(Joint Meeting agenda from Management Partners, Attachment 2.A and
Attachment 2.13) (some of which relate to City aquatic facilities and some of
which relate to the relationship and financial issues that affect both the City and
School District)
Recommendation — 1) Take action on or provide direction regarding those
matters identified on Exhibit 1.
Greg Carpenter, City Manager, explained and introduced the item and explained that he
along with Facilitator, Karen Orlansky and Superintendent, Melissa Moore have been
working together over the last couple of months to respond to the issues that were
raised at the previous meeting.
Karen Orlansky, Facilitator, discussed and clarified the answers to the questions from
the previous meeting.
Council and School Board discussion.
Greg Carpenter, City Manager and Melissa Moore, ESUSD Superintendent, provided
and overview and clarification of the issues and possible options regarding Attachment
for Agenda Item 2.A.
2. Discussion, consideration and possible action to 1) Review options and terms of
a potential agreement or revise the existing Joint Use Agreement (regarding the
shared use of City and School District facilities) 2) Formalizing the terms between
the City and EI Segundo Unified School District regarding the new EI Segundo
Aquatics Center at Wiseburn High School at 201 N. Douglas Street and Urho
Saari Swim Stadium (also known as the plunge located at 219 West Mariposa
Ave ((Joint Meeting agenda from Management Partners, Attachment 2.A and
Attachment 2.13)
Recommendation — 1) Discuss the potential financial and use terms of the
agreement(s) with the EI Segundo Unified School District Board; and,2) Provide
direction to the City Manager on the terms and format of an agreement(s)
between the City and ESUSD for future use of the new EI Segundo Aquatics
Center.
Greg Carpenter, City Manager and Melissa Moore, ESUSD Superintendent, spoke on
the outline of issues and options of Attachment for Agenda Item 2.B.
Council and School Board Discussion.
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total)
Lee Davis, resident, expressed gratitude for Council and School Board for the tentative
agreement.
Chris Tichy, resident, commented on the issues of the plunge.
***Attached are meeting notes provided by Karen Orlansky, facilitator, Management
Partners.
ADJOURNMENT at 7:30PM
Lili Sandoval, Deputy City Clerk I
Management
Partners
Joint Meeting
El Segundo City Council and Board of Education,El Segundo Unified School District
City of El Segundo Police Department,EOC
348 Main Street,El Segundo, CA 90245
December 14, 2017, 6:00 PM
Meeting,Pur
To discuss and reach agreement on:
o The process for formalizing the terms of ESUSD's use of the El Segundo Aquatics Center,
including the length of the use agreement; and
ESUSD's financial contribution to the City toward the renovation of the Plunge:methodology for
calculating,total amount, and timing of payment(s).
1. Opening Items
A. Welcome and Call to Order (Mayor,Board President)
B. Pledge of Allegiance
C. Agenda Hearing Period—Public Communication(Mayor,Board President)
2. Discussion and Possible Action
The joint meeting will be facilitated by Karen Orlansky,Management Partners
A. Review of Answers to Questions and Interests Amendments from
October 10,2017 Joint Meeting (See Attachment 2.A, pages 1-3) 10 minutes
B. Overview of the Issues to be Decided (City Manager and Superintendent)
(See Attachment 23,pages 4-5.) 10 minutes
C. Discussion and Possible Action(City Council Members,Board Members) 90 minutes
D. Review of Agreed-Upon Next Steps (City Manager and Superintendent) 5 minutes
3. Closing Items
A. Brief Remarks—Oral Communication from the Audience
B. Adjournment
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Attachment for Agenda Item 2.A
Answers to Questions from Members of the City Council and ESUSD Board
1. What was the basis for ESUSD's estimate that the ESUSD use rate at the Plunge is 24%of
total pool time available?
The calculation is the number of scheduled school-related program hours at the Plunge divided into
the total number of hours the Plunge is operational on an annual basis.More specifically,ESUSD
swimming and water polo programs utilize approximately 876 hours of the 3,650 total operational
hours at the Plunge. The usage varies during season, off-season,and summer practice schedules,
and can fluctuate depending on match,meet and tournament schedules.The Recreation and Parks
Department has reviewed and verified the ESUSD analysis.
2. Do you expect ESUSD's use rate at the new El Segundo Aquatics Center to be equivalent,
lower,or higher than ESUSD's use of the Plunge?
The projected usage of ESUSD programs at the new facility will increase the number of hours to
include the addition of before-school morning practices and possibly an additional tournament. The
increase in hours,however, will not result in an increase in the overall percentage of ESUSD's usage
at the new facility due to the fact that the El Segundo Aquatics Center will offer 2-3 times more
programmable pool space than currently available at the Plunge.
3. What is the rate of return that ESUSD is earning on the$22 million received from sale of the
surplus school site?
On November 14 2017, the ESUSD Board of Education approved a Memorandum of Understanding
with the Los Angeles County Treasurers Office to authorize the Superintendent to place$16 Million
of the Imperial Street School proceeds into a special investment.The rate of the return on the
investment has yet to be determined,but more likely will fall within a range of 2% to 3.25%. The
remaining balance of$6.625 Million earns 1.39%.
4. How was the annual operating deficit of the new El Segundo Aquatics Center estimated to be
$600K, and what is the City's plan for addressing this?
According to the most recent financial projections,the City's annual operating deficit for the new
Aquatics Center is expected to be approximately$100K as a stand-alone facility.The current
operating deficit of the City's existing aquatics facilities (Plunge+2 outdoor seasonal pools)is
$556K. When the new Aquatics Center is fully operational, the Plunge is expected to generate
increased revenue, and the total projected net deficit for the entire City Aquatics Program is as
follows in the table on the next page, which uses data projected for the second full year of
operations.
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Attachment for Agenda Item 2.A
The Plunge/Outdoor Pools New Aquatics Center Total
Expenses Total $ 731,729 $ 1,067,800 $ 1,799,529
Revenue Total $ 254,274 $ 974,669 $ 1,228,943
Net Revenue(Deficit) $ (477,455) $ (93,131) $ (570,586)
The City is optimistic that the addition of the new Aquatics Center will be cost-neutral to the overall
General Fund budget. Revenues generated at both the Plunge and the new Aquatics Center will
offset about 68%of the expenses.The revenue projections are based on assumptions that the City
will establish fees consistent with current market conditions, program fees will incrementally
increase, and non-traditional aquatics programming(e.g., SCUBA) and event rentals will be a vital
component to achieving cost-recovery.
S. Could ESUSD enter into an agreement with Wiseburn regarding ESUSD's use of the new El
Segundo Aquatics Facility?
The City of El Segundo and Wiseburn entered into a Settlement Agreement in which the City agreed
to operate the aquatics facility. In order to modify this arrangement, all parties would have to agree
to amend the Settlement Agreement and Wiseburn.and ESUSD would need to agree to the terms of
the operation of the aquatics facility. This possibility has not been discussed with Wiseburn.
In addition,ESUSD has stated that they do not have the capabilities(staffing, finances) or desire to
operate the new El Segundo Aquatics Facility. There is also the question of whether such an
arrangement would meet the objectives of serving broader community access to the facility and how
the programming at this facility would coordinate with the operations of the Plunge.
6. Could the City of El Segundo sell the Plunge to ESUSD?
The City of El Segundo could sell the Plunge to ESUSD if the school district had an interest in
purchasing it.However,the school district has no interest in purchasing the Plunge.
7. If the City and ESUSD reach an agreement on ESUSD's financial contribution,then will the
City also agree to a three-way joint use agreement for the new El Segundo Aquatics Center?
The response to this question is subject to discussion at the Joint Meeting scheduled for December
14, 2017.
8. Regarding the City's options 2 and 3,what is the amount the City is looking for?
The response to this question is subject to discussion at the Joint Meeting scheduled for December
14, 2017.
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Attachment for Agenda Item 2.A
Updated List of Interests*
ffivol ffim' m
An ongoing collegial,constructive,and trusting An ongoing collegial,constructive,and trusting
working relationship between and among the working relationship between and among the
leadership and staff of the City of El Segundo, leadership and staff of the City of El Segundo,
ESUSD,and Wiseburn USD. ESUSD,and Wiseburn USD.
Timely resolution of the current question Timely resolution of the current unresolved
regarding ESUSD's dollar contribution to the issue regarding ESUSD's dollar contribution to
funding of aquatics facilities used by ESUSD's the funding of aquatics facilities used by
students. ESUSD's students within ESUSD boundaries.
Timely resolution of any outstanding issues
regarding ESUSD's future use of the El Segundo
Aquatics Center.
Providing quality recreation services to all Ensuring a quality and predictable aquatics
members of the El Segundo community, program for ESUSD students,to include
especially the children. formalizing ESUSD's future use of the El
Segundo Aquatics Center and SAARI Plunge in
an agreement that has longevity and employs
language to foster a collegial and trusting
relationship.
Exercising fiscal responsibility,which includes Maintaining appropriate resources and services
entering into agreements that have sufficient for ESUSD,to include exercising fiscal
flexibility to allow for termination in order responsibility.
to avoid increasing the City's financial;
liability.
Following through on any previously made Ensuring that there is a legal nexus to tie any
commitments,e.g.,the January 2016 settlement financial contribution ESUSD would make to the
agreement. City compliant with the laws regarding the
expenditure of school district funds in the State
of California.
*Revisions to the table are shown in bold font.
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Attachment for Agenda Item 2.B
Outline of Issues and Options
A. The Agreement for ESUSD's Use of the El Segundo Aquatics Center
1. Structure of the Use Agreement
Optic is
a. A three-part agreement among the City, El Segundo USD, and Wiseburn USD.
b. A two-part agreement between the City and ESUSD that outlines the
contribution to the Plunge AND a three-part agreement(City, ESUSD,
Wiseburn USD) that outlines ESUSD usage of the Aquatics Center.
c. A two-part agreement between the City and ESUSD that outlines the
contribution to the Plunge AND a two-part agreement (City & ESUSD) that
outlines ESUSD usage of the Aquatics Center.
d. Other?
2. Length of the Agreement
O_ntions
a. 10 years, which equates to the term of the current Joint Use Agreement for
Public Recreation Facilities, negotiated between ESUSD and the City of El
Segundo in 2012.
b. 25 years, which equates to the term of the Settlement Agreement negotiated
between Wiseburn USD and the City of El Segundo in 2016.
c. Other?
B. ESUSD's financial contribution
1. Amount and methodology
0j:)fl ans (coot ria. WatI OXCJ .a.•k'
a. Calculate an amount as the percent of ESUSD's use of the Plunge applied to the
cost of renovating the Plunge. The City and ESUSD agree that the current
estimate of 24% fairly represents the usage: 24% of$2,398,020, equates to
$576,362.
b. Calculate an amount based on the estimated costs of the equipment needed in
the new El Segundo Aquatics Center. The City has provided the District with a
proposed necessary equipment list that totals roughly$400,000.
c. Calculate an amount based on the estimated future operating costs of ESUSD's
use of the El Segundo Aquatic Center.
d. Establish a cap on the amount(s) for purposes of budget and planning
purposes.
e. Other?
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Attachment for Agenda Item 2.B
2. Timing of financial contribution
Ontions
a. One-time lump sum
b. Schedule of payments over time
c. Combination of lump sum and schedule of payments over time
d. Other?
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