I can't seem to place a lifeguard chair around the pool I built. It keeps showing red.

Also, how about lifeguards? How do I get those.

is there enough room for the chair? and there are no life guards in the game

The only problem I could see would be lack of space. The only lifeguards in the game are the ones created when you place down a lifeguard chair, and they are purely cosmetic, doing nothing but sit in the chair.