The Seal Beach City Council unanimously approved a new agreement with First Serve Tennis to manage the Seal Beach Tennis Center at the Monday, July 25 council meeting.
Tim Kelsey, director of community services, said the agreement would reduce the center’s deficit.
During an April council meeting, Director of Administrative Services Robbeyn Bird told the council that the tennis center had been running a deficit of about $70,000 a year from 2006 to 2010.
Cathy Jacobson-Guzy, chief executive officer of First Serve Tennis, Inc., has been running the Seal Beach Tennis Center since Jan. 1, 2009.
According to last week’s staff presentation by Kelsey, staff projected a $70,000 deficit for the fiscal year 2010-11. However, the actual deficit was $64,000.
According to Kelsey’s report, city staff contacted tennis center vendors to discuss ways of reducing expenses.
For the next fiscal year, landscape maintenance will be reduced by 10 percent, the manager’s draw will be reduced by 20 percent and First Serve staff will take over all janitorial responsibilities.
“The anticipated savings that the city can expect to see for 2011/12 is $37,133,” Kelsey wrote. “This would reduce the anticipated deficit from approximately $64,000 to approximately $26,867 for the fiscal year 2011/12.”
Staff recommended another change to the management agreement.
Under the new agreement, Jacobson-Guzy would be paid half of any profits from running the center up to $12,000 in addition to the money she will be paid to manage the facility.
The city would receive the other half of any profits made by the center.
Councilman Gary Miller asked how the city could monitor the center’s budget on a monthly basis.
Kelsey said First Serve provides detailed information on the 15th day of each month. Kelsey said the center doesn’t operate with an adopted budget.
Jacobson-Guzy also said the center doesn’t have an adopted budget.
“Is there any possibility of increasing membership fees?” Miller asked.
City Manager Jill Ingram said tennis center fees would be a component of an up-coming study of city fees.
Miller said Jacobson-Guzy was doing a good job, considering the recession.
Miller said he would like to see her get a fee of up to $24,000 if the center turns a profit. Jacobson-Guzy said it would be a blessing if the center reached that goal.
Miller said he had been at the tennis center and found staff were doing a good job when she wasn’t there.
During oral communications, several tennis club members spoke in favor of the new contract.
The council agreed to Miller’s proposed change to the contract.
