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HomeMy WebLinkAbout04/07/2009, C3 - USE AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO BASEBALL ALLIANCE, LLC FO council Mnaft q -'4 - cq j accnaa wpoin C3 CITY OF SAN LUIS OBISPO FROM: Betsy Kiser, Parks & Recreation Director Prepared By: James P. Bremer, Recreation Supervisor SUBJECT: USE AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO BASEBALL ALLIANCE, LLC FOR USE OF THE SAN LUIS OBISPO BASEBALL STADIUM FOR 2009 RECOMMENDATION 1. Approve an agreement with San Luis Obispo Baseball Alliance, LLC for use of the San Luis Obispo Baseball Stadium for the 2009 season. 2. Authorize the Mayor to execute the agreement between the City of San Luis Obispo and the San Luis Obispo Baseball Alliance, LLC. DISCUSSION Background For more than 40 years, the San Luis Obispo Baseball Stadium (SLO Stadium) has hosted the activities of many local baseball organizations, including Babe Ruth Baseball, San Luis Obispo High School, Cuesta College, Central Coast Men's Baseball and a semi-pro team - the SLO Blues. In 2007, a new semi-pro team, the SLO Rattlers,joined the list of facility users. During that season, tension between the two semi-pro teams became so adversarial that outside mediation was required in order for the teams to cooperatively share the facility. Due to the 2007 use issues, City staff was directed by Council to release a Request for Proposal (RFP) for use of the stadium in 2008 by any semi-pro team. As expected, the SLO Blues and the SLO Rattlers both submitted proposals. Ultimately, the two teams reached an agreement on how they would work together if both were allowed to use the stadium and the City subsequently entered into a use agreement with each organization. Just prior to the start of the 2008 season, the SLO Blues were sold and new management took over operation of the team. Under the new management team, the 2008 season went smoothly and the relationship between the SLO Blues, SLO Rattlers and the City improved greatly. Then in August 2008, the SLO Blues defaulted on their use agreement by failing to pay use permit. fees. The existence of an outstanding balance ($11,612.07) was shared with the District Attorney's office, and the City exercised the cancellation clause of the agreement. The District Attorney's office concluded that fraud was involved and filed criminal charges against the team's management..The City denied further use of the stadium to the SLO Blues. 03 -- I Use Agreement—City and SLOBALL, LLC Page 2 Current Situation In February 2009, a new semi-pro baseball organization called the San Luis Obispo Baseball Alliance, LLC (SLOBALL) approached the City requesting use of the SLO Stadium for the 2009 season. Operating under the SLO Blues name, SLOBALL submitted a 2009 proposal for use and supplied documentation to the City Attorney supporting its ownership of the "SLO Blues" name and logo and denying any affiliation with the previous SLO Blues organization. Based on previous direction from Council allowing two semi-pro baseball teams to simultaneously use SLO Stadium, staff prepared a Use -Agreement between the City and SLOBALL for the 2009 season. The agreement is for one year with an option to renew for a second year if all terms of the agreement are met. The recommended agreement, which is available for review in the Council Reading File, is modeled after recent use agreements. With regard to the 2009 season, the majority of available professional baseball dates have already been allocated to the Rattlers; this proposed agreement will allow SLOBALL an opportunity to use dates not yet allocated consistent with the expectations of the City. JUC Review Because use of SLO Baseball Stadium falls under the purview of the Advisory Committee on Joint Use of Recreational Facilities (JUC), the proposed use agreement between the City and SLOBALL was presented to the JUC at its March 24, 2009 meeting. During the public comment period, questions surfaced regarding whether SLOBALL or the previous ownership has the right to use the"SLO Blues"name and logo. Although any dispute over ownership rights to use "SLO Blues" is a private matter between the two organizations and would not affect the use agreement with the City, the JUC requested that the item be postponed until it had more information on past history. It agreed to hold a Special Meeting on March 31 so that SLOBALL was not delayed in moving forward with its season. Staff will follow up with a red file item on the JUC's action from the special meeting. CONCURRENCES The City Attorney has reviewed the proposed use agreement for content and concurred that the new business is not representing the ownership of the former SLO Blues organization. He also confirmed that the use agreement contains an indemnification/hold harmless clause that effectively protects the City from any legal action that SLOBALL may encounter. The Advisory Committee on Joint Use of Recreational Property postponed the item at its March 24 meeting and will consider the use agreement at a Special Meeting scheduled for March 31. Minutes from that meeting will be provided prior to the Council meeting. C3 -CZ Use Agreement—City and SLOBALL, LLC Page 3 FISCAL IMPACT The City will recover revenue from the SLOBALL for use of the Stadium under the current fee schedule. Anticipated revenues will be approximately $10,000, although SLOBALL is still working with staff to set its exact schedule for the season. All fees will be paid in full before scheduled use begins. Parks & Recreation and Public Works staff will continue to supervise Stadium activities and maintain the facility. Council Reading File: 1. San Luis Obispo Baseball Alliance, LLC—SLO Baseball Stadium 2009 Proposal for Use 2. Use 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 2009 Season T:\Council Agenda Reports\Parks and Recreation CAR\CAR-SLOBALL Use Agreement for the SLO Stadium 4.7.09 C3 -3 FOR IMMEDIATE RELEASE !]'COUNCIL C3'CDD DIR �/nr6e SIN DIR Contact: Joe Vergara, (805)471-6407, 'oe'uicecharterinternet.c k�h6"O-co7yirrse a'FIRE CHIEF Daniel McGee(805) 512-9606, dan(a�,mcgeez.net LeATTORNEY 2pw DIR R-CLERK/ORIG MPOLICE CHF RED FILE 13 DEPT HEADS ZrREC DIR C�UTIL DIR - MEETING AGENDA NEW SLO BLUES TO TAKE UP CAUSE ON BEHAI: — [�"HR OR DATE ITEM OF THOSE INJURED BY PAST OWNER NllJnnlCf � � �� a ry The SLO Baseball Alliance, which is taking over the reigns of the San Luis Blues baseball team for the 2009 season, has decided to help assure those people owed money from Steven McPherson are paid. McPherson, also known as Stevie Mac, is currently facing criminal charges for what has turned into some sort of bad-check writing saga that ended up with a lot of people not getting paid. Stevie Mac purportedly purchased the team last year on the premise that he would be taking the Blues to new heights. A.lot of people believed him, and supported his efforts. But when people weren't getting paid, his charm and promises suddenly gave way to a harsh reality. Stevie Mac had a history of writing bad checks, and bilking people out of their money. "This is just not the sort of thing I nor the people in this community are accustomed to having happen to them"says Joe Vergara,who sold the team to Stevie Mac in 2008, and who is still owed a considerable amount of money from Mac. The team has been a long-time favorite of the local community for baseball entertainment, and many people have been supporters of the team. "His actions have put a big black-eye on the face of the Blues, and it hurt the entire community," says Vergara. Vergara,one of the founders of Jamba Juice, regained control over the SLO Blues team through a separate entity comprised of local, community supporters who did not want to see the Blues disappear after over 50 years of local existence because of what may turn out to be the criminal actions of one man whom a lot of people trusted. The SLO Baseball Alliance, which is comprised of a small group of investors and a local board of advisors, aims at revamping the SLO Blues into a true community asset dedicated to the local area and its many supporters. For this reason, according to spokeswoman for the Blues, Sheila.Kearns,"it became obvious to the board that some healing needs to occur to address the injury caused by Stevie Mac to the community." According to Attorney Daniel McGee, the SLO Baseball Alliance is not connected to the San Luis Obispo Blues Baseball, Inc., which was the legal entity purchased by Stevie Mac, so there is no basis for paying Mac's debts or righting his potential criminal activities. "Nevertheless," says McGee, "it is difficult to accept that innocent community members, some of which were kids, will be left high and dry if somebody doesn't step up and do something." Vergara is leading a legal effort to get back the money lost by everyone. Vergara says that anyone potentially injured by Stevie Mac's wrongful actions should contact Vergara or McGee. Meanwhile, the new board of the SLO Baseball Alliance is setting aside profits and looking at fundraisers to assure these people are paid, in addition to the civil suit being brought by Vergara on behalf of everyone hurt. "Fundraisers are going to take place, first to get those kids paid, and then everyone else hurt last year will get paid, too" according to Kearns, also tasked with fundraising by the new board for this specific purpose. "I fully expect that the community of San Luis Obispo will step up to the cause, as well, and recover much stronger than before." ��iiiii����llllllllll�" IIIIIU COUNCILRED FILE MEETING AGENDA DA o ITEM # -L-i MEMORANDUM March 31, 2009 OCOLINCIL [Er COD DIR I ,Er,eAE)0ri1x6'A B"FIN DIR TO: City Council CHIEF L�'FIRE ZO ATTORNEY e'pw DIR f U-CLERKVORIG 2`POLICE CHF VIA: Ken Hampian, City Manager ❑ DEPT HEADS Z"REC DIR E P�3 ZrUTIL DIR r2�+ Q HR DIR_ FROM: Betsy Kiser, Parks & Recreation Director NaO nr `-`-Louvu - Linda Fitzgerald, Recreation Manager �Liry Ajc.k SUBJECT: Outcome of March 31 Joint Use Committee Meeting-SLOBALL Stadium Use Agreement As indicated in the staff report, the Advisory Committee on Joint Use of Recreational Property postponed taking action on the Agreement between the City and SLOBALL for use of SLO Baseball Stadium for the 2009 season at their March 24 meeting as a result of questions regarding the use of the "SLO Blues"name. The JUC held a special meeting on March 31 to get further information from staff as there were several questions regarding the legal status of the name "SLO Blues"as far as ownership of the name and results of previous Council action on the 2008 Blues agreement. SLOBALL contends that it owns the assets and the name "SLO Blues'but wished to separate itself from the former ownership due to the legal difficulties of the previous owner. Tim Golden, former SLO Blues owner, through his legal counsel, disputes the claim of ownership to the assets. The JUC indicated that they were merely approving an agreement for use of the Stadium and any legal issues with the use of the SLO Blues name is outside of their scope. The JUC approved the agreement on a vote of 3-2, with 2 members absent. Draft minutes from the March 24 and March 31 JUC meetings are attached for Council's review. Attachments: I. Draft Minutes from March 24, 2009 Joint Use Committee Meeting 2. Draft Minutes from March 31, 2009 Joint Use Committee Special Meeting ATTACHMENT 1 i Advisory Committee on Joint Use of Recreational Property DRAFT MINUTES City/County Library Conference Room 995 Palm Street Tuesday, March 24, 2009 12:00 p.m. CALL TO ORDER: Chair Michael Parolini called the meeting to order at 12:04 p.m. ROLL CALL: Committee Members Terry Conner, Nancy Cochran, Stew Jenkins (arrived late), Colin Jones and Craig Kincaid(representing PRC) ABSENT: Stephen Cairns STAFF: City of San Luis Obispo: Linda Fitzgerald, Recreation Manager; James Bremer, Recreation Supervisor; and Marti Reynolds, Supervising Admin. Asst. 1. Public Comment None. 2. Consideration of Minutes MOTION: (Cochran/Conner)Approve the February 24, 2009 minutes as submitted. Approved 3 yes: 0 no: 2 abstained/unable: 2 absent (Cairns, Jenkins absent at this time) 3. 2009 Facility Use Grant Program Order of the three items rearranged per the City Attorney. Each of the recommendations were discussed and voted upon separately. Second recommendation regarding SLO Rugby Club was then reviewed first. Committee Member Terry Conner recused himself as he is a representative of SLO Rugby. 1) Recommend no allocation to SLO Rugby Club as requested amount does not qualify for funding. Opened for Public Comment: • Dan Ainsworth: Comment regarding the allocation in general and not on SLO Rugby specifically. Feels grant funding is interpreted incorrectly and that the Ilhslnrellf•mnlCburlcil Red Fd"ISLOBA/J.Ag,,,. &03.14.09 D,,o JUCM/ wr .DOC ATVrHMENT 1 Advisory Committee on Joult Use of Recreational Property - page 2 March 24, 2009 Minutes subcommittee recommendation on reimbursement does not meet needs. The City bundles there fees ($66) whereas Cuesta, for example, does not and can cost 2 to 3 times more. MOTION: (Jones/Cochran) Recommend no allocation to SLO Rugby Club. Approved 5 yes: 0 no: I abstained/unable: I absent (Cairns) Committee Member Jenkins stated would like to see subsidized use of facilities, more aggressive at scheduling use when facility available for future consideration. Thinks subcommittee did good job of evaluating program. Recreation Manager Fitzgerald pointed out there is time to re-evaluate before next grant season in 2011. Committee Member Conner returned to the meeting. Public Comment: • Dan Ainsworth was given the opportunity to resummarize his comment for the full Committee. Feels subcommittee misreading intent of reimbursement. Paying twice as much for non-City facilities as they do not bundle fees. His concern is with the policy only; suggested removing item and giving all funding to the Soccer Club. At Chair Parolini's request, Recreation Supervisor Bremer explained for the committee the section on "like fees" eligible for reimbursement and that requests for those fees aren't eligible if not similar. Recreation Manager Fitzgerald pointed out it is a grant program and the JUC can allocate what it decides is right. Chair Parolini agreed that it is nice to have a grant program available and reminded that criteria was set up on purpose last year to follow with a clear ranking system that was not present in previous years. Concerns should have come forward last fall when setting criteria. As there will be no more grants until 2011 due to City budget shortfalls, the matter will be reviewed again at the end of 2010, prior to the 2011-2013 Financial Plan development. 2) Recommend a grant allocation of$98.00 to Central Coast Baseball. MOTION: (Jones/Parolini) Recommend a grant allocation of$98.00 to Central Coast Baseball. Approved 5 yes: 0 no: I abstained(Conner): I absent (Cairns) ATT44CyMENT 1 Advisory Committee on Joint Use of Recreational Property page 3 March 24, 2009 Minutes 3) Recommend a grant allocation of$6,617.00 to the San Luis Obispo Soccer Club (note figure change from original agenda item of $6715 listed in error but was correct in staff report). Committee Member Jenkins questioned grant in relation to Damon Garcia and Cal Poly fees. Chair Parolini explained Facility Grant and youth organizations and how figure was determined. Committee had questions of Dan Bryden , representing SLO Soccer Club, who stated the majority of tournament revenue goes back into the club for youth scholarships. MOTION: (Cochran/Jones) Recommend a grant allocation of 56,617.00 to the San Luis Obispo Soccer Club Approved 6 yes: 0 no: I absent (Cairns) 4. San Luis Obispo Baseball Alliance, LLC (SLOBALL) Use Agreement Action: Approve the agreement between the City of San Luis Obispo and SLOBALL for the 2009 season and direct staff to forward the committee's recommendation to the City Council. Recreation Supervisor Bremer relayed the request received from the San Luis Obispo Baseball Alliance (SLOBALL) for stadium use. Currently, Babe Ruth and the Men's Baseball League have requests through mid-May and the SLO High School has pulled out of the rest of the year. Dan Ainsworth of Men's Baseball League has requested other open dates that may be available now since there is no current permit for a 2"d semi- professional team to use the stadium for 2009. Public Comment: Kirk Endres, attorney representing Tim Golden, stated that, although he has not seen the proposal from SLOBALL, wishes to clarify that SLOBALL does not represent the SLO Blues, cannot own the SLO Blues, and is not to use the same logo. Paperwork disputing the Alliance will be filed in court before April 7. If this motion on the agreement is approved on using the strength of the SLO Blues name, he is opposed for this reason. Recreation Manager Fitzgerald stated would reflect in staff report. Chair Parolini asked for confirmation that Mr. MacPherson is no longer associated with the SLO Blues. Mr. Endres stated if Mr. MacPherson does own any part he has made it known he is willing to sign over to Mr. Golden. Committee Member Jenkins asked for clarification on the absence of SLO Blues in the staff report. Recreation Manager Fitzgerald stated the agreement was cancelled when the SLO Blues defaulted on payment, therefore, the agreement was not extended. ATTfir,HMENT 1 Advisory Committee on Joint Use of Recreational Property page 4 March 24, 2009 Minutes Recreation Supervisor Bremer clarified that SLOBALL is a new organization and that legal issues of logo use, etc. are between the SLO Blues and SLOBALL and not the City. Mr. Endres stated that they would make sure previous commitments would be settled before his client would approach the City for an agreement again. Mr. Ainsworth questioned scheduling preference of a new organization over Men's Baseball to which Recreation Manager Fitzgerald reminded of the priorities of use to semi-professional and Babe Ruth teams first. Committee Member Conner asked for verification on the Council's decision last year regarding use by the SLO Blues and SLO Rattlers. Recreation Manager Fitzgerald stated that since she did not have the information readily available, she could not answer that question. MOTION: (Conner/Jones) Postpone the approval the agreement between the City of San Luis Obispo and SLOBALL for the 2009 season because actual verbage from the previous action on the City Council's decision between SLO Blues and SLO Rattlers is unavailable. Approved.i yes; 0 no: I abstained: 1 absent (Cairns) The Committee discussed need for a special meeting. Recreation Manager Fitzgerald said Council would meet next on April 21 which would allow staff a window of time to prepare information for a special meeting of the Committee beforehand. Would notify the SLOBlues and SLOBALL to attend. Special Meeting discussed. Recreation Manager Fitzgerald reminded that City Council can choose to take action without the approval of the Committee. Committee Member Jenkins recommended review of various sections including but not limited to sections 4.2, 4.4, 4.10, and 4.12 regarding security guards, pay toilets, game scheduling etc. and potentially rewording 4.1 to establish procedure for priority of selection of games/fines. Recreation Supervisor Bremer explained how process of scheduling worksand that he sets bi-annual meetings prior to seasons with all users present. MOTION: (Jenkins, Conner) Un-Table Item 4 and take no action today. Direction may include further study, including insurance. Motion was withdrawn after further discussion. MOTION: (Jenkins/Conner) Un-Table Item 4. Approved 6 yes: 0 no: 1 absent (Cairns) ATTA�t� ;� T Advisory Committee on Joie i Use of Recreational Property page 5 March 24, 2009 Minutes MOTION: (Jenkins/Conner) Committee directs staff to remove SLOBALL agreement from Council consent agenda and provide JUC with.further information on the stadium use with SLOBALL present, then place on special meeting agenda. Approved 5 yes: I no (Parolini): 1 absent (Cairns) MOTION: (Jenkins) Staff consider section 3.3 insurance and consider rewriting 4.1 as well as work with staff on sections 4.2, 4.4, 4.10 to clary issues of permittee at own expense. Motion died for lack of a second. Recreation Manager Fitzgerald explained during the RFP process, there needed to be even treatment for all teams involved. Committee expressed discussion take place at end of season. Committee agreed to hold Special Meeting on March 31, 2009. Mr. Endres and SLOBALL representatives will be notified. 5. Recognition of Outgoing Member Terry Conner Chair Parolini presented a plaque to Terry Conner commemorating his outstanding service to the Committee from 2005-2009. Committee Member Conner thanked the Committee for their hard work. 6. Staff Reports There was no staff report. 7. Additional Items None. ADJOURNMENT Meeting was adjourned at 1:20 p.m. to a special Joint Use Committee Meeting, to be held on March 31, 2009, 12:00 p.m. at the City/County Library Community Room. ATTAGH!AEUT 2 ADVISORY COMMITTEE ON JOINT USE OF RECREATIONAL PROPERTY March 31,2009 Special Meeting DRAFT Minutes PRESENT: Chair Michael Parolini, Vice Chair Colin Jones,Committee Members Nancy Cochran,Terry Conner and Stephen Cairns ABSENT: Committee Members Stew Jenkins and Jill Lemieux STAFF: Recreation Manager Linda Fitzgerald and Recreation Supervisor James Bremer Meeting was called to order at 12:07 pm by Chair Parolini PUBLIC COMMENT PERIOD: No public comment received. AGREEMENT BETWEEN CITY AND SLOBALL, LLC FOR USE OF SLO BASEBALL STADIUM FOR 2009 SEASON: Recreation Manager-Fitzgerald gave a brief summary of the staff report, focusing on the questions raised at the March 24 meeting regarding the previous actions by the Council regarding Stadium uses in 2008. Chair Parolini opened up the floor for public comment: Joe Vergara,representing San Luis Obispo Baseball Alliance,LLC(SLOBALL),thanked the JUC for their time. He wanted the Committee to move forward on the action item and to look at the facts regarding the SLOBALL proposal. Chal Fanning declined to speak but was available for questions regarding SLOBALL. Dan McGee, legal counsel representing SLOBALL, indicated that the Blues would continue in some form or fashion. Postponing the approval of the agreement affects the ability of the team to seek sponsorships for their upcoming season. He stated that the Blues ownership is not in question and the issue at hand is only for the use of the Stadium for 2009 by an additional semi-pro baseball team. Kirk Endres, legal counsel for Tim Golden,stated there was no change in their position . from the last JUC meeting. He said if the JUC is moving forward on the agreement,to do so if the agreement is for a group not the SLO Blues. If the group is representing themselves as the SLO Blues,then there would be legal action filed. Tim Golden indicated that Kirk Endres is representing his interests and chose not to speak. ATTACHIMERT ? Rich Reynolds made statements about the validity of the information and that only one team should be given use of the Stadium. He commented that Dan Ainsworth from Men's Senior Baseball should also be represented. He wanted someone to pay the Blues' debt from 2008 and felt SLOBALL should make that payment to the City to cover the debt from last year. Chair Parolini closed the public comment period and asked for committee input. Vice Chair Jones asked Mr. Vergara if SLOBALL is intending to operate as the SLO Blues. Mr. Vergara stated that the 2008 team was SLO Blues, Inc.,owned by Stephen MacPherson,and that his group wanted to separate themselves from the previous ownership. Mr. McGee indicated that SLOBALL owns the assets from SLO Blues, Inc as Mr. MacPherson defaulted on several conditions of the previous agreement he had with Mr. Vergara. Committee Member Cochran clarified that the action to be taken by the JUC was to just consider approval the agreement and not to get involved who owns the name"SLO Blues." Committee Member Conner said that he was in favor of an agreement for a second team to be allowed into the Stadium but would not endorse the proposal if the new team chose to use the Blues name. He stated that the legal action between the two groups would hurt the community and that the negative press could hurt the Blues in the long run. Committee Member Cairns indicated that the committee is addressing the agreement at hand and that use of the Blues name would not affect the agreement. Vice Chair Jones asked Mr.Vergara about using the Blues name. Mr. Vergara stated that he had been working with the City to clarify their use of the name and the ownership of the team and that they had the right to use the SLO Blues name, logo and branding associated with the name. Committee Member Conner suggested to Mr. Vergara that they should operate under another name for the team until the issue with the SLO Blues name is resolved. Mr. Vergara said it would not be realistic for their group to not operate as the SLO Blues for the upcom mg season. ------------------------ - comment B6i):Use it aounie - -_ - neptive? Chair Parolini stated that use of the Blues name is irrelevant and that the JUC is simply approving an agreement for use of the Stadium. He also clarified,along with Recreation Manager Fitzgerald,that the outcome of the legal matter with Mr. MacPherson is still pending and that at this point,there is one spot available for a semi-pro team to use SLO Baseball Stadium this season. Previous Council decision was for the use of the stadium by no more than 2 semi-pro teams. Chair Parolini commented that the battle for the use of the stadium could heat up should all three groups become organized for use of the stadium next season. Recreation ATTACHMEWT ? • Manager Fitzgerald stated that the agreement before the JUC was for one year term with a one year option;the Rattlers have a second year's extension on their current agreement. She indicated that if both parties have a successful season,the options on both agreements are likely to be extended for the 2010 season. MOTION: (Cochran/Cairns)Approve the agreement between the City of San Luis Obispo and SLOBALL, LLC for use of SLO Baseball Stadium for 2009. Approved 3-2 (Jones,Conner voting no;Jenkins,Lemieux absent) Meeting was adjourned at 12:37pm to the regular JUC meeting scheduled for Tuesday, April 28,2009. Page 1 of I i Attachments can contain viruses that may harm your computer.Attachments may not display correctly. Council, SloCity From: joejuice@charterinternet.com Doejuice@charterintemet.com] Sent: Tue 4/7/2009 9:12 AM To: Council,SloCity Cc: Subject: San Luis Obispo Baseball Alliance Attachments: [j City Council Letter.doc(141KB) D San Luis Obispo Baseball Alliance Partner Information.doc(1461(B) �� Sar Luis Obispo Baseball Alliance Mission Statement.doc(141KB) D Blues History.doc(145KB) Good Morning— We wanted to provide some information to you about the San Luis Obispo Baseball Alliance. We look forward to seeing you at tonight's City Council meeting. Warmest regards, Joe Vergara RED FILE ; 12TOUNCIL - CDD121" OIR �-' IR MEETING AGENDA `"`""�e CrF R C C�'FjRE CHIEF at ITEM # 3---- N-ATTORNEY C�'PDIP DATE 2 ❑ EPT HEA S C b RCHF Q---- I�UTILDIR 21'HR Cly T/hfS IGOLc UCcL https://mail.slocity.org/exchange/sloc itycouncil/Inbox/S an%2OLu is%200bispo%20B aseball... 4/7/2009 r r �V I S C y - o d BASEBALL April 6, 2009 Dear City Council Members, Thank you for your service to the City of San Luis Obispo. We are grateful for the opportunity to share with you who the San Luis Obispo Baseball Alliance is, what our mission is, and a piece of the rich history of the San Luis Obispo Blues. Since December 2008, we have been working diligently with the Department of Parks and Recreation, the .San Luis Obispo City Attorney, and the Joint Use Committee to share our plans to lease San Luis Obispo Stadium and to bring the SLO Blues Baseball Team back for the 2009 "season. We have ' provided all necessary documentation to prove ownership of the team by SLO Baseball Alliance, LLC, We have been working to provide jobs in our community, to operate a high caliber summer collegiate baseball program, and restore goodwill in hard economic times. We are all volunteering hours of hard work to save this piece of history and to provide a place where the community can come to enjoy quality family entertainment. We look forward to your approval and the privilege of keeping Blues Baseball alive on the Central Coast. Sincerely, Joe Vergara Dan McGee Chal Fanning Mike Lara Attachments ta, eI Q � y O m ':r BASEBALL SLO BASEBALL ALLIANCE, LLC Joseph Vergara - President Joe moved to San Luis Obispo from Santa Barbara in 1986 to attend Cal Poly. His longtime involvement in the natural foods industry led to him to co-founding Juice Club and then Jamba Juice in 1990. Joe has been actively involved with the Cal Ripken and Babe Ruth leagues for 7 years, having coached or served on the Board in each of those years. His love for baseball and the Central Coast were the reasons that Joe began investing in the Blues in 2005, with the vision of creating the best summer collegiate team in the state. Joe is now back as the majority owner of the Blues and actively involved in all aspects of the team. Choi Fanning- Head Coach, Managing Partner Chal returns for his 7m season with the Blues. Since helping spearhead the revival of the modern Blues in 1994, Fanning has accomplished a record as head coach of 207 wins-123 loses. Serving as the skipper from 1994-1997 and 2006 to current, Fanning has combined his community and local roots with national baseball powers to help bring a brand of baseball to SLO that fans have come to enjoy. After playing high school baseball for Paso Robles(87'grad), Cuesta College (89'-90') and Cal Poly (9l '-92') as well as an 8 year collegiate coaching career (Cuesta College 96', University of Missouri 97'-02', and Cal Poly 03'), Fanning has coached or recruited 5 players in Major Leagues, over 100 drafted players, and 16 All Americans. Most notable is Blues Alum (96') and two time Major League All-Star now taking over closer duties for Los Angeles Angels, Brian Fuentes. Mike Lara - Pitching Coach, Managing Partner Mike is back with the Blues for his 9th year as pitching coach. His past includes 20 years as a high school coach, in Atascadero and Santa Maria. He also serves as pitching coach for the So Cal Cardinals, a scout team based in Thousand Oaks, It features some of the best high school players in Southern California. Mike has served as a scout for the San Diego Padres and the last two years for the St. Louis Cardinals. Twenty - four of his past ballplayers have signed professional contracts. Daniel McGee- Director of Administration, Managing Partner Dan is a local attorney with a passion for local Blues baseball. He is highly involved in youth sports and the community. Having grown up with Blues baseball, his goal in getting involved with the Blues has been to assure that the team remains a strong community asset. He acts as the business and administrative side of the Blues, as well as providing legal counsel. r %31S p Q o y O BASEBALL SLO Baseball Alliance, LLC Mission Statement The mission of the San Luis Obispo Baseball Alliance is to preserve the history and viability of the Blues baseball team, to support and enhance summer collegiate baseball on the Central Coast, to create jobs in the San Luis Obispo community, and to provide high quality family entertainment. We are dedicated to creating a culture where we hold ourselves to the highest standards of integrity and ethics in all that we do. We are deeply connected to and unified by our passionate dedication to the San Luis Obispo community and we strive to maintain the unique experience of living on the Central Coast. VV 1 S C �1 @I 4J 0 m ` BASEBALL The San Luis Obispo Blues began in 1946 when founding manager Sandy Leguina gathered a group of WWII vets coming home to San Luis Obispo, who wanted to play baseball. He added a few younger players and began the season as the San Luis Obispo Merchants playing against semipro and town teams from throughout California. It was only a few weeks later that George Baker, sports editor of the Telegram-Tribune newspaper, commented in a column that any team worth anything should be called something more colorful than the "Merchants." He offered the name "Blues" and said that if no one else could suggest a better name, he would start calling them that. He referenced that their uniforms had blue lettering and blue stockings and declared that any objections should be addressed to his desk, "else in the future we will" use the new name. So his article on the Blues' June 30, 1946, game with the Los Angeles Cubs, a highly regarded semipro team, was headlined "Blues to Meet LA Cubs." That, incidentally, was a contest won by the Blues, 8-1. The team developed land near Mission San Luis Obispo that was owned by the Catholic diocese as its home field. Located adjacent to where Mission College Prep now sits, that site is now used by MCP high school as the home field for its athletic program. There is still a handful of players from the late 40s and early 50s that reside in the Central Coast area, and can be spotted occasionally at home games of the Blues, including Eddie Angelo, Jerry Hurley, Hal Martin, Dick Morrow, Buddy Rosa, Ron Rodenberger, Charles "Doc" Seger, and Jim Zanoli. The Blues became directly connected to the roots of Little League, Babe Ruth, youth baseball, and the American Legion baseball programs in San Luis Obispo when, during the 1950s and 1960s, it was Leguina and other members of the team who provided the organizational leadership, coaches, and other resources for the various leagues and teams. Many men who have gone on to play or manage in the Major League Baseball have played for or against the SLO Blues over the years, among them Hall of Famer Leroy "Satchel" Paige, Jim Lonborg, Chuck Estrada, Mel Queen, Joe Amalfitano, Rocky Bridges, Jim-Lefebvre, Dean Treanor, Tom VMorgan, Virgil Trucks, Tom Hutton, Andy Messersmith, and Brian Fuentes. The Law Office of Daniel M. McGee N4t2� Cody Cr�+rL ,/ Z'COUNCIL _ RED FILE Attorney at Law E g% pG?,,,nINCIIN D R41124 Nipomo Street,Suite C ���61IIEETINQ A®EN®A San Luis Obispo,CA 93401 p%�ORNEY lyRy pIpHIEFITSM (805) 512-9606 0 dan@mcgeez.net CLERK/ORIG uCE CHF❑ DEPT HEADSEC DIR� OUTIL DIR April 4, 2009 '�`R"° �FR DIP. �NEw 7i122� / CBu(/C(L To: Mayor and City Council of the City of San Luis Obispo i erg! Subject: Use Agreement Between the City of San Luis Obispo and the SLO Baseball Alliance, LLC, for use of SLO Stadium (April 7,2009, Consent Item) Honorable Mayor and City Council Members, I represent the interests of the SLO Baseball Alliance, LLC, with regard to the proposed use agreement with the City of San Luis Obispo. This letter is an attempt to provide you with relevant and pertinent facts surrounding the proposed use, and the new entity desiring use of the facility. There has recently been a lot of local attention given to the acts of Steven McPherson("Stevie Mac") and what appears to be fraudulent actions impacting the community and the long tradition of San Luis Obispo Blues baseball entertainment. The SLO Blues have been in the local community for over 50 years, having received official recognition and endorsement by this City Council in 1946. The SLO Baseball Alliance was formed in order to seek preservation of this long-standing tradition of SLO Blues baseball, and to possibly repair some of the damages inflicted on the community by creating a board of community-involved people to oversee the team and assure some of the problems plaguing the team in the past are not repeated. The San Luis Obispo Blues Baseball, Inc. was purchased by Stevie Mac, albeit it now appears that the entire agreement may have been a sham. That issue is being reviewed by the appropriate authorities, and may not be resolvable for some time. Meanwhile,the SLO Baseball Alliance has attempted to assure that all of its actions are documented and appropriate. Joe Vergara of the SLO Baseball Alliance held a promissory note defaulted upon by Stevie Mac. This has allowed the SLO Baseball Alliance to utilize the assets foreclosed upon by Vergara. Understandably,the City of San Luis Obispo required indemnification and assurances that the SLO Baseball Alliance was a legal entity, with appropriate rights to call its baseball team, the`Blues." This has been accomplished, and it is therefore not relevant in this discussion for the City Council to adjudicate this issue. Nonetheless, the existence of the SLO Blues has become a community issue requiring some address. Other individuals,besides Stevie Mac, have alleged some ownership interests in the SLO Blues. I have reviewed any and all documentation regarding these claims, and they frankly do not exist. This said, it does not preclude anyone from alleging an ownership interest, nor does it prevent anyone from filing a formal complaint. If it becomes a legal matter to be resolved, it will necessarily be resolved outside of this City Council forum. The SLO Baseball Alliance has provided appropriate assurances to the City in this regard. It would therefore be a shame for the City Council to make a i decision that prevents the SLO Baseball Alliance from moving forward with a 2009 season,based on allegations that have nothing to do with approval of a use agreement. I urge the City Council to review the matter at hand solely with regard to the proposed use agreement, and avoid a potentially emotional discussion of Stevie Mac and the Blues, Inc. This agreement is between the SLO Baseball Alliance, LLC, and the City. Sincerely, /signed/sent via email 44-09/ Daniel M. McGee Attorney at-Law