08. Cupertino Sports Center Pool
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-32110
FAX: (408) 777-3366
Website: www.cuoertino.org
CITY OF
CUPEIUINO
PARKS AND RECREATION DEPARTMENT
STAFF REPORT
Agenda Item Number L
Agenda Date: September 5, 2006
SUBJECT
Reject proposals received for use of the Cupertino Sports Center Pool. The lease for use ofthe
Cupertino Sports Center pool, with De Anza Cupertino Aquatics (DACA), expired on March 31, 2006.
DACA continued to rent the facility month-to-month, through the end of July.
BACKGROUND
Staff released an RFP for use of the facility on July 3, 2006 and received the three proposals detailed
on the attached spreadsheet (See Exhibit A). On August 15, 2006 the City Council reviewed the
proposals in closed session. All of the proposals require City investment to make the pool renovation
possible. The best-case scenario costs the City 350K over five years. Given the private investment
made in learn to swim facilities in the immediate vicinity (Sutton Swim School, DACA and the
YMCA), Council opined that using public money to compete in the swimming business, when the
service was already available, was not the best way to serve the community. Council asked staff to
return in open session for action to reject proposals. Council also requested an analysis of alternative
uses for the space and suggested that the Parks and Recreation Commission take input and make a
recommendation to Council.
DISCUSSION
The space is small, approximately 7000 square feet, or 1/6 an acre. It's the proportions of a tennis
court (in fact, that was probably the original intent - before someone doing the market analysis for the
private racket club - in the 1970's - decided pool-side cocktails would be more lucrative). There is an
existing bathhouse on site that is not ADA or code compliant. The utilities present on site are tied to
the sport center utilities.
The pool is located on Stevens Creek Blvd., adjacent to the sports center entry. A diagram showing its
location relative to other city facilities in the area is attached (See Exhibit B). The five single-family
homes (The Commons) closest to the pool area are buffered by three tennis courts and a sound wall.
To our knowledge, the swim school caused no noise or traffic impacts to the adjacent properties.
A number of Cupertino park needs are unmet. Some, like skateboarding and dog off leash areas are
familiar to Council. We get frequent requests for outdoor basketball. Our summer Roller Hockey
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Camp uses the Creekside Parking Lot, and the Saturday In-line Skating Classes use the City Hall
Parking Lot. The competition for parking spaces and co-existence with parked cars does not make
these arrangements ideal. There are a number of alternatives the public may want to comment on and
the Parks and Recreation Commission may contemplate before making a recommendation. To assist
with gathering public input, staff requests that the Council provide more direction to the Commission,
in the form of goals for the project, before the Commission conducts its first hearing.
Service vs. Profit:
Of specific concern in this analysis is the Council's expectation for profit generation. In the past, the
Council has made decisions in support of programs the private sector has not offered (racquetball and a
teen center) but then questioned the financial viability of the facility during budget reviews. As the
Commission takes input regarding the best use for the space, it is important to know what the Council's
expectations are regarding service vs. income. There will need to be some level of capital investment
in re-using the site; after we have narrowed the choices to two or three, we can return with preliminary
estimates.
ST AFF RECOMMENDATION
Reject all proposals received. Articulate goals for service/revenue at the site and ask the Parks and
Recreation Commission to take public comment on the alternatives. Ask the Parks and Recreation
Commission for a recommendation regarding re-use of the site.
SUBMITTED BY:
APPROVED FOR SUBMISSION
TO CITY COUNCIL:
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Therese Ambrosi Smith, Director
Parks and Recreation Department
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David W. Knapp, City Manager
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S orts Center Pool Pro osals Com .
arlson Exhibit A
Name Program Yrs. Proposed Lease Renewal Proposed Insurance Use of 5 yr. Total Project 5 Yr.
Type! Experience Mo/Rent Length Terms Capital Existing Rent & Cost Cost to
Start Investment Enclosure? Capital City
Date Investment
Maki Lessons all 15 years $4K/mo. after 7.5 yrs. w/ Renewal $250K + up $5.1 million Wants to $250K $600K $350K
ages/ 5 yrs renewal option after 5 front purchase from
abilities/ option yrs. DACA, or will
disabled after5 yrs. make
provisions for
Flexible another if
start date needed.
Water Swim 20 years $2K 5 yrs. Two options to If $500K $1 million Wants to $570K $600K $480K
Babies School. 4 years as renew, for 5 annual gross: aggregate purchase from potential, only
owner yrs. each. per incident DACA, or will $2K/mo. is or
Start Date: Must give 151 yr. will pay make guaranteed.
Spring 2007 renewal notice 10% of gross = provisions for (contingent on $30K if
at least I yr. $50K. another if hitting annual tenant
prior to 2nd yr. 20% of needed. gross revenue earns
expiration. gross = $ lOOK goals each of 5 $500K
90% of fair 3rd _5th yr. will years) gross rev.
market rent the pay $IOOK in each of
second each year. 5 yrs.
renewal.
If less than
$550K/year,
NO capital
investment
YMCA Private/ Cupertino $1/mo. for first 5 yrs. None specified $30K w/ yes Possibly $30,060 $600K $569,940
group swim YMCA has 5 6mo. Until Board purchase from
lessons, all years understanding approval DACA
ages/ expenence of utility and depending on
abilities. bubble costs the cost
Flexible
start date
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PROJECT LOCATION MAP
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g:\parks and recreation admin\sports center\grant\project location map.doc
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