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HomeMy WebLinkAbout12/15/2009, C8 - 2010 SAN LUIS BASEBALL STADIUM USE AGREEMENTS I council j acEnaa RepoiA ]�N ba c8 CITY O F SAN LUIS O B I S P O FROM: Betsy Kiser, Parks & Recreation Director Prepared By: James P. Bremer, Recreation Supervisor SUBJECT: 2010 SAN LUIS BASEBALL STADIUM USE AGREEMENTS RECOMMENDATION As recommended by the Advisory Committee on Joint Use of Recreational Property 1) Authorize the Mayor to execute an amendment to the agreement between the City of San Luis Obispo and Rattlers Baseball Development Group, INC. for use of San Luis Obispo Baseball Stadium for the 2010 season. 2) Authorize the Mayor to execute an amendment to the agreement between the City of San Luis Obispo and the San Luis Obispo Baseball Alliance, LLC for use of San Luis Obispo Baseball Stadium for the 2010 season. DISCUSSION Background The San Luis Obispo Baseball Stadium, located in Sinsheimer Park, is heavily used by youth and adult baseball organizations as a home field for games and tournaments. During the summer months which are the peak of the baseball usage for the Stadium, Babe Ruth Baseball and Men's Senior Baseball Leagues along with two collegiate baseball organizations, the Rattlers Baseball Development Group, INC. (Rattlers) and the San Luis Obispo Baseball Alliance, LLC (Blues), utilize the facility. "Three years ago, a request for proposal (RFP) was issued to interested collegiate level teams wishing to use the Stadium for game play. The Blues and Rattlers both submitted successful proposals and have operated their seasons since then under an agreement with the City. The Rattlers have maintained a consistent organization over the years and last year the City extended their existing agreement with only a few minor amendments. However, ownership changes have plagued the Blues organization since the initial agreement and last year a decision was made not to automatically extend their agreement after problems occurred the previous year with payment of the facility use fees. Rather, a new agreement was drafted that included an option to extend for another year if all terms and conditions of the agreement were met this past season. Cg 2010 San Luis Baseball Stadium Use Agreements Page 2 Advisory Body Review The Advisory Committee on Joint Use of Recreational Property (JUC) has oversight of the priorities for use of San Luis Obispo Baseball Stadium and has been actively involved in the process of having two collegiate level teams at the Stadium. After receiving a year-end evaluation report at its August 2009 meeting regarding the successful activities by both teams during the past summer season, the JUC recommended that City Council extend agreements for both teams for the 2010 season (see Attachment 1.) SLO Rattlers Extended Agreement The Rattlers baseball organization has been using the San Luis Obispo Baseball Stadium since May 2007. Since its first permitted use, the organization has been a very good tenant and its management team has worked well with the City. General Manager Dave Hite has worked closely with City staff on all areas of their scheduled use of the stadium. Based on a year-end evaluation of the 2009 season and input from the JUC, staff agrees with a one-year extension of the Rattler's current agreement with a minor amendment to permit the organization to split its use fee into two payments: one payment due five days prior to the first game of the season and the balance due on June 28, 2010. Staff feels this is a reasonable accommodation given the Rattlers track record of positive adherence to the terms and conditions of their use agreement and the rules and regulations of the Stadium. SLO Blues The Blues organization has undergone new ownership for each of the past three seasons and during this time, staff has experienced a number of issues with its use of the stadium. Previous ownership problems involved mediation, non-payment of user fees, and difficulties with how the Stadium was used. However, through it all, General Manager Mike Lara has remained a constant, responsible and reliable contact during each ownership change and through his efforts, communication and contract performance has steadily improved between the Blues and the City. Again based on a year-end evaluation that was favorable, staff agrees with a one-year extension of the Blues Use Agreement, amended to reflect the following terms: 1. provide one security officer for monitoring the areas around the Stadium; 2. permission for a storage unit to be on site; 3. issuance of a key for access to the facility other than the concession stand; and 4. permission for a bounce house to be available for children during games. The Blues also requested a two-payment plan, but due to the instability of team ownership over the past several years, staff is recommending that term of payment of use fees remain the same, with full payment due five working days prior to the first scheduled use. T:\Council Agenda ReportsTarks&Recreation CAR\2010 Stadium Use Agreements\stadium use agreement CAR 111009- final.doc p 2010 San Luis Baseball Stadium Use Agreements Page 3 Future Uses Both agreements with the Blues and Rattlers will expire at the end of the 2010 season. Previously, the City Council directed the release of a RFP to collegiate level baseball teams for a formal plan to use San Luis Obispo Baseball Stadium. Staff is proposing that the same RFP process be used to determine use of the Stadium for 2011 and will return to Council for permission to release the RFP in the summer of 2010 with the intent of retaining two collegiate level teams at the Stadium (as previously directed by Council). CONCURRENCES At its August 25, 2009 meeting, the JUC supported the extension of the agreements to both organizations. FISCAL IMPACT Use fees from the Rattlers Baseball Development Group, INC and the San Luis Obispo Baseball Alliance, LLC will be charged under the current fee schedule. Revenues are anticipated to be around $23,000.00 for the two agreements. Parks & Recreation and Public Works staff will continue to supervise and manage Stadium activities. ATTACHMENTS 1. August 25, 2009 Minutes of the Advisory Committee on Joint Use of Recreational Property 2. Amendment to Agreement between the City of San Luis Obispo and the Rattlers Baseball Development Group, INC for use of San Luis Obispo Baseball Stadium 3. Amendment to Agreement between the City of San Luis Obispo and the San Luis Obispo Baseball Alliance, LLC for use of San Luis Obispo Baseball Stadium T:\Council Agenda Reports\Parks&Recreation CAR\2010 Stadium Use Agreements\stadium use agreement CAR 111009- final.doc CS -3 �71nt",l'lub�y,+ Advisory Committee on Joint Use of Recreational Property DRAFT MINUTES Ludwick Community Center 864 Santa Rosa Tuesday, August 25, 2009 12:00 p.m. CALL TO ORDER: Chair Michael Parolini called the meeting to order at 12:05 p.m. ROLL CALL: Committee Members Nancy Cochran, Stew Jenkins, Colin Jones and David Hensinger(representing PRC) ABSENT: Stephen Cairns and Jesse Bilsten STAFF: City of San Luis Obispo: James Bremer, Recreation Supervisor; Linda Fitzgerald, Recreation Manager; Marti Reynolds, Supervising Administrative Assistant and Todd Beights, Parks and Urban Forest Supervisor 1. Public Comment None. 2. Consideration of Minutes MOTION: (Jenkins/Cochran) Approve the July 28, 2009 minutes as submitted. Approved- 5 Yes: 0 No: 2 Absent (Bilstein, Cairns) 3. Request for Use of Sinsheimer Park Tennis Courts Recreation Supervisor Bremer and Recreation Manager Fitzgerald explained background of Sinsheimer Tennis Court Use. Chair Parolini clarified that the 10 a.m. to 11 a.m. time slot can be approved without Committee consent. Fitzgerald confirmed B Teams requests for Tuesday had already been received and that permits will be done by the end of the week. Committee Member Jenkins commended staff for their work on this matter. MOTION: (Jenkins/Parolini) Approve the requests from the Central Coast Women's Tennis Leagues "A", "A-West" and "A" teams to use four tennis courts at Sinsheimer Park on Wednesdays between 9:00 a.m. and 10:00 a.m. Approved—5 Yes: 0 No: 2 Absent (Bilstein, Cairns) Ciala'erWmellUCminmeJ'f1041 fFY,JJ.114 Orn/f.l(iL'.SJimrfreO(1C ATTACHMENT 1 4. San Luis Obispo Rattlers (SLO Rattlers) and San Luis Obispo Baseball Alliance, LLC (SLOBALL) Use Agreement: Recreation Supervisor James Bremer gave a summary report on the 2009 Stadium use by SLO Rattlers and SLOBALL. Felt there was good communication throughout the season and that field use went very well. Bremer encouraged Committee members to continue relationship and endorse extension of agreements with both teams for future. MOTION: (Jenkins/Jones) Based on staff report of good relationship in past season, endorse the extension of the current agreements with SLO Rattlers and SLO BALL through the 2010 season; staff to negotiate issues prior to submitting an amendment to the agreement for each part for City Council approval. Approved—S Yes: 0 No: 2 Absent (Bilstein. Cairns) 5. Staff Report Recreation Manager Fitzgerald reported a temporary solution to SLO Rugby's need for a (local) practice field. In communications with Terry Conner, the comer area west of the Santa Rosa Skate Park seems agreeable. This will allow two years in which to find an alternative before construction of the new skate park. Parks and Urban Forest Supervisor Beights stated using the softball fields at El Chorro after the season is over is still his suggestion, although realizes the location is not ideal. Chair Parolini inquired as to the looks of Damon Garcia Field after a month of soccer use. Supervisor Beights felt it was doing well, particularly compared to the first cycle, and that products used to bolster durability are working. Main issues now are effects of recycled water. Recycled water uses a pump delivery drive system with inconsistent pressure and flows (potable water is gravity fed and consistent). Process of treatment for recycled water results in higher nitrate and sodium levels which build up in the root zone although effects aren't seen for a few years. Normal rainfall years push sodium out of the root zone; weather patterns have been abnormal as of late. Even native plants only tolerate conditions awhile before perishing. Stated looking at more salt tolerant options and that adding nitrogen helps grass grow faster to recover, however;.hours then increase for mowing and line-painting of playing fields. Recreation Manager Fitzgerald added same conditions are being seen at Laguna Lake Golf Course although a more tolerant bent grass is being tried there to combat effects of reclaimed water sodium build up. Discussions on potable options followed. Added that French, Islay and Laguna Lake just started using recycled water however the soil profiles differ there in that they are less sandy. 6. Additional Items No additional items. ADJOURNMENT Meeting was adjourned at 12:31 p.m. to the September 22, 2009 Joint Use Committee Meeting to be held at 12:00 p.m. at the Ludwick Community Center. �+ lcs 'J� Ir',ruPiiET AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE RATTLERS BASEBALL DEVELOPMENT GROUP, INC. FOR USE OF SAN LUIS OBISPO BASEBALL STADIUM THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on this of , 2009 by an between the City of San Luis Obispo, a municipal corporation, herein after referred to as CITY, and the Rattlers Baseball Development Group, INC, herein after referred to as RATTLERS. WHEREAS, on April 10, 2008 the City entered into an Agreement with the Rattlers to lease the San Luis Obispo Baseball Stadium at 900 Southwood Drive in Sinsheimer Park for approved uses through August 23, 2008 and was extended for the 2009 season on December 2, 2008; and WHEREAS, pursuant to Section 5.6 of the Agreement, the City Council, on , 2009, authorized the extension of the Agreement to continue through August 26, 2010; NOW THEREFORE, in consideration for their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. Section 3 -Fees, Licenses and Insurance 3.1 Facility Use Fees Rental fees will reflect the current approved rates at the time the agreement, or any subsequent amendment thereto, is executed. The City will not honor fee waiver requests for this use. A payment schedule with two equal installments will be used for billing of the rental; Permittee will be given the installment amounts at the time the permit is processed. The first payment will be due no later than five (5) working days prior to the first scheduled game of the each season. The second and final payment will be due by June 28, 2010. Any additional charges incurred during the season shall be due immediately upon presentation of a revised permit. 2. All other terms and conditions of the Agreement remain in full effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. ATTEST: CITY OF SAN LUIS OBISPO By: Elaina Cano, City Clerk Mayor David F. Romero �g -6:0 ATVDNWI APPROVED AS TO FORM: RATTLERS BASEBALL DEVELOPMENT GROUP, INC By: onat . Lowell, City Attorney 3 AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND SAN LUIS OBISPO BASEBALL ALLIANCE, LLC FOR USE OF SAN LUIS OBISPO BASEBALL STADIUM THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on this of , 2009 by and between the City of San Luis Obispo, a municipal corporation, herein after referred to as CITY, and the San Luis Obispo Baseball Alliance, LLC, herein after referred to as BLUES. WHEREAS, on March 18, 2009 the City entered into an Agreement with the Blues to lease the San Luis Obispo Baseball Stadium at 900 Southwood Drive in Sinsheimer Park for approved uses through August 27, 2009; and WHEREAS, pursuant to Section 5.6 of the Agreement, the City Council, on 12009, authorized the extension of the Agreement to continue through August 26, 2010; NOW THEREFORE, in consideration for their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows- 1. Section 3 -Fees, Licenses and Insurance 3.1 Facility Use Fees Rental fees will reflect the current approved rates at the time the agreement, or any subsequent amendment thereto, is executed. The City will not honor fee waiver requests for this use. No later than five (5) working days prior to the first scheduled game of the each season of use pursuant to the Agreement or any subsequent extension thereof, all use fees in conjunction with the use permit are due and payable to the City. Any additional charges incurred during the season shall be due immediately upon presentation of a revised permit. 2. Section 4—Operation and Management Plan 4.2 Security Guards: Permittee shall provide one security officer, who is employed by a bonded private security service, for the purpose of monitoring the stadium area, alcohol sales and consumption, and outside the parking lot area. Permittee may be required to supply additional bonded security officers at the direction of the City. 4.8 Storage: Permittee has permission to bring in a single storage unit to be placed in an area of the field to be determined by the Parks Maintenance Supervisor. No alcohol is allowed to be stored in this unit. Permittee may store concession items, except alcohol, in the concession/press box building and storage unit, subject to availability of storage and County Health regulations. Items are stored at the Permittee's own risk. If Permittee wishes to store additional items on site, written permission from City must be obtained in advance. Permittee will remove all equipment from the facility by Thursday, August 26, 2010. If City finds items /10 t-fj -0 ATTACHMER.T 3 stored after Thursday, August 26, 2010, those items will be removed and disposed of without notice to Permittee and Permittee shall bear all associated cost with removal. 4.18 Opening of the Facility: The Permittee will be granted a GK2 key for access to the facility three hours before the scheduled game time. Access is only granted to the field, BBQ and seating area.. City staff will arrive at a time designated by the Permittee to open the concession/press box building. 4.19 Bounce House: Permittee will be allowed to use the area outside the Stadium located near the first base side gate access, for placement of a bounce house during their permitted use times. Final location of the bounce house will be at the discretion of the Parks Supervisor. 3. All other terms and conditions of the Agreement remain in full effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. ATTEST: CITY OF SAN LUIS OBISPO By: Elaina Cano, City Clerk Mayor David F. Romero APPROVED AS TO FORM: SAN LUIS OBISPO BASEBALL ALLIANCE, LLC By: Jo P. Lowell, City Attorney �gl' I From: mail.slocbe.com[SMTP:LESLIE@SLOCBE.COM] RECEIVE® Sent: Friday, January 22, 2010 4:31:14 PM To: Council, SloCity JAM 2 51010 Subject: Consent Agenda Item C-8 Auto forwarded by a Rule SLO�II 'CITY CLERK Mayor Dave Romero �Ne� Kms- CSE Honorable Ma Y C'[ty 1R62 D[FT�2[c[L Members of the City Council A%7-. Cary Ge l+r f7C��2fyLD I would greatly appreciate your removing from the Consent Agenda item C-8 regarding a lease for use of the stadium for summer 2010 season and postponing it until spring. Since you have just hired a new city attorney I believe it would be in the best interest of everyone to give her a chance to familiarize herself with all the issues herein before going forward with a new contract. As you may recall,I spoke last year urging the city to go forward with the 2009 use of the stadium. I felt that would give everyone a chance to resolve this ownership issue,generate some funds to keep the team viable and meanwhile would be providing baseball to the community. The ownership of the Blues baseball team is still in litigation. Although this ownership issue was supposed to goto mediation this summer,that has not happened.The disputed owner at that time, Joe Vergara,who took the team back when buyer Stevie Mac defaulted on a payment in October 2008, has since sold the team to another person,Jim deLucia,the owner of Silverado Stages. There is a lawsuit working its way through court on behalf of other former owners that will be. coming up in February 2010 as to the legality of the sale to Stevie Mac without payment and now the legality of the subsequent sale to Mr. deLucia. There are minority shareholders who have still not been paid from the first sale. I question the wisdom of the city signing a lease or agreement for the coming season and beyond with any organization on behalf of this team since there are still so many outstanding debts to former shareholders and ongoing litigation regarding who actually owns the team. I spoke in favor of going forward last year with a contract because I hoped that that would buy time to straighten this out. But that did not happen, and as.a result, I cannot support the same failed strategy fora second year. I would ask that you not sign a contract for Blues baseball until the ownership issue has been resolved. The courts will decide who owns the team. By signing a contract with anyone on behalf of the team while ownership is still in litigation,the city may be involving itself in future litigation. I would strongly urge you to let this wind its way through the courts. A speedy resolution would be the best result for all involved. I would hope some agreement could be worked out between all parties so that a contract for stadium use could still be inked before the start of baseball season. By not signing an agreement tonight,you will be helping to bring about this resolution by forcing all parties to the table-exactly what we had hoped would happen last year. Alternately, if the city is still bound and determined to move ahead despite these ownership issues and current litigation,I would ask that a clause be added that the use contract goes with the team ownership. If the ownership issues can be resolved in court,the responsibility for the lease and its payment would go with the ownership of the team. It would be very awkward in this case for one entity to have a contract and the other entity to own the team. Given the litigious nature of all parties and the lack of cash and clear communication, I can only see more lawsuits arising from that.This too might work to force all parties to mediate in good faith and resolve this before baseball season. I do not know if this is legally feasible but again this underscores the need for legal review by the city attorney. Thank you and I would be happy to discuss this matter further should the need arise. Very truly yours, Leslie Halls, SLO city resident and minority shareholder 1359 Oceanaire Drive San Luis Obispo, CA 93405