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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Fred Wilson, City Manager
Subject: RESOLUTION AUTHORlZING THE
MAYOR TO EXECUTE AMENDMENT NO.2 TO
THE LEASE BETWEEN THE CITY OF SAN
BERNARDINO AND THE SAN BERNARDINO
STAMPEDE, INC.
Dept: City Manager's Office
Date: June 27,2006
MICC Meeting Date:
Synopsis of Previous Council Action:
January 24, 2002 - Mayor and Council adopt Resolution 2002-29, authorizing an amendment to the lease
with the San Bernardino Stampede, Inc.,
June 1996 - Mayor and Council approve a lease with the San Bernardino Stampede, Inc., for the use of
the City's baseball stadium
Recommended Motion:
Adopt resolution, and authorize the Director of Finance amend the fi
the staff report.
Contact person: Lori Sassoon; Lemuel Randolph Phone: 5122
Supporting data attached: staff report resolution Ward: 3
agreement
FUNDING REQUIREMENTS:
Amount: None
Source: (Accl. No.)
(Accl. Description)
Finance:
Council Notes:
J<-eS() , eJObb-J5'K
Agenda Item No. LJ I
7/10/0(,
STAFF REPORT
Subiect:
Resolution authorizing the Mayor to execute Amendment No.2 to the lease between the City of
San Bernardino and the San Bernardino Stampede, Inc.
Backe:round:
The City has had a lease with the San Bernardino Stampede (now the Inland Empire 66ers of San
Bernardino) for the use of the City's baseball stadium since 1996, when the stadium was first
constructed. In 2002, the lease was amended to revise some of the lease terms, and to
incorporate a partnership with Arrowhead Credit Union to rename the stadium Arrowhead Credit
Union Park.
Representatives from the City and the Team have agreed in principle that it is in the best interests
of both parties to reassign responsibility for playing field maintenance from the City to the Team.
Under the current lease, the City is responsible for groundskeeping and related functions, with
the City and the Team equally sharing the cost. The gross cost for salaries and benefits for
groundskeeping in FY 05-06 is anticipated to total $153,600, and is budgeted at $156,200 for FY
06-07. The Team's reimbursement to the City of its 50% of these costs is one of the subjects of
an ongoing dispute. For the last several years, the team has not paid the full 50% of these costs.
While the City's groundskeeper and crew have done an excellent job maintaining the fields, this
work requires very long hours during the baseball season, resulting in employee burn-out. The
incumbent groundskeeper would like to return to the regular park maintenance functions, and
there are currently openings available to accommodate the full-time employees in that area. The
Team believes it can provide the same level of service at a lower cost, which will provide
savings for both parties. The proposed lease amendment (attached) details the roles of the Team
and the City in greater detail. The amendment also makes minor clean-up changes to reflect the
actual roles that the City and the Team have at the stadium.
The proposed lease amendment will assign the groundskeeping and other related functions to the
Team effective July II, 2006. The City will compensate the team up to $80,000 per year
beginning in this first year, with the amount escalating by cpr annually. The City will be
credited $40 per stadium seat for each seat repaired or replaced, up to a maximum credit for
$10,000.
Financial impact:
The total budget for salaries and benefits for the stadium is estimated to be $156,200 in FY 06-
07. With the approval of this lease amendment, the budget can be amended to delete these
expenditures. Some maintenance and operations (M&O) savings will also be realized. The new
maximum expenditure of $80,000 will be budgeted in Account No. 133-461-5505 to reflect the
payment that will be made to the Team in accordance with the lease amendment.
Revenues to the Stadium Fund, which were projected to total $150,000, will also be reduced to
reflect the loss ofthe 50% reimbursement from the Team.
'7) //) ~~
These actions will result in no net impact to the Stadium Fund as follows:
Delete salarylbenefits costs: $156,200
Reduce misc. M&O costs: 2,000
Loss of 50% reimbursement: (78, I 00)
(estimated amount)
Payment to Team per lease amendment:
Net cost:
(80,000)
$ -0-
If the lease amendment is approved, the final FY 2006-07 Budget will be amended to reflect
these changes.
Recommendation:
Adopt resolution, and authorize the Director of Finance to amend the final FY 06-07 Budget as
outlined in the staff report.
Strikethrough/ormot 6-17-06
AMENDMENT NO.2 TO LEASE
WHEREAS, the parties hereto agree to amend this Lease which shall be to the
benefit of both parties; and
WHEREAS, this amendment shall not affect the rights and obligations of the
parties hereto, including the right to pursue any legal or equitable remedy to enforcement
of the terms and conditions of the Lease;
Now, therefore, the Lease dated June 18, 1996, and amended on January 24,
2002. by and between the City of San Bernardino (hereinafter referred to as "City") and
San Bernardino Stampede, Inc., now known as the Inland Empire 66ers Baseball Club of
San Bernardino, Inc. (hereinafter referred to as "Tenant"), is hereby amended effective
July 1,2006 as follows:
Section I. Section 5.04 of the Lease IS hereby amended to now read as
follows:
5.04 Tenant shall use its best efforts to control the conduct, demeanor and
appearance of its officers, agents, employees, representatives, customers, guests, invitees,
contractors and others doing business with it upon the premises. For events which
Tenant is responsible, Tenant shall have employees at the Stadium capable of
communicating instructions to persons occupying the Stadium during events provided for
in this Lease and to reasonably offer safety directions to those occupants, including, but
not limited to, the direction of an evacuation in the event of emergency. Tr..;'IlWl( .~h.l// he
1\'SfO/lsihlL' lor ;:nmndsk('('Jling" 01/ II year-round basis, usillg cmp/o)"t.:t.'fSi .1Ii..! 01'
;..:oflll"(A'lrWl.'IJ IJWl JIrC under the,pirr.:<..'{ supervision of the ;Tenant and shall be experienced
in the care and maintenance of professional baseball fields. Tl!IlUIll shall as-'lIrc [liar
rro((','s;O/lU! sW/ldurd, ,we muinlain,'d The CifY shall acdil Tl:llulll S80,()(!fI ,"-h"11 .\','ur
I~( rhis lL~asc, hcginning on Del'..:mf,('r J!. ]()(Hi. Th..n:(~fi('r. said "mOl/lit sh,d! h~'
illl:r"'(lscd y..:ar!r hy ,he CO/lSlIlIl..'r Priel' !ndl'.r vf tlh' BUrl!ClU (~l' Luhor SWlis,ic.\ {l,hl.!
L".S. Dc'parllm.:m ()f Luhor jiw .~!! CrhulI ('omlfm..:rs. Los .4ngcles-Rin.;.'rside-Orallge
('ul/ilt)'. AI! !t..:ms, (IW(!-!I)S-/"", !OOl ("(:pr') frum Dj;'l'emhcr I?( Ihe prl.Tiou.\ Vl'(1r
through .\"1I1\'n1he)" O(lhl' c'urrenl .1'('(1r (l'(/IW!(I" U f\u..'/rl'-mllnm /h'riodJ Fo,. ilIuHrufio!l.
. Deleted: City and TefWII asrees 10
equally pro\'ide hmding for two srounds-
keepers, approved by both City Ind
Tenanl. on I NU-time equiulml.
Deleted: Said groundskeepen shall be
CitycmplO)'ees
. Deleted: general
Deleted: City
. Deleted: The hiring oftbe
groundskeepen shall be understood to be
appro1cirnalely S42,OOO in value for each
. !!1oundskeeper
ffh' cFI.-'Ji! inal.!il\l'}i1r }()fr shull hi.: l!h'!'l'n'l'lIla:;l' mal.!(/'\(.' in CPI/rum Dt'I..'.:mher ~()06
lhmugh\()\"('mhl'r :()()~,
5.04.1 Cil)" Ugn.'L'S 10 IJl'gOliuh' H'irh T.:nam.l{lr rite Lm: u/groul1J.,kl.'..:pillj?
c111ll1'Jnl'!Il (l\\"!h'J hy Ihl.' Cil.\". .:irh.:/" hI' rurd}()se or h'dSL' al {/ ri..'u.'wlwh/e rille wilh rhe
()/Iflon to purdlJ't:',
5.04.2 Tilt' eil;.' ullci T.:nwll (/1\; mnfrl? and i.KkJ/()wlt!dgt! rhl! playingjidd
nlusf h~' nlJi/lIJi!h,J (0 a slundurd us r..:quircd hy Class A prqli:.'isional ha'it!hu/l, }{ujor
/"t:agu<..' Busch,tll. Iht' \w;o!Ju! h,WClUlion and Ih..: Ca/~/(Jrniu LCUKUC, If due In
Und\'Uhl"Nc or unlor,'SiXII ..irClIfIISftllk'CS, Ilk' Tl.'llullI is lInJhlt' 10 pl.'!itl1'nI illt:
::l"II/lIlcl,j'l'cpi!lg \l'n'hl'\ (/l'\~'rihl'J h":/"l'ill. Ihe CilY og/"\.',;\' tn ncgllfidle wilh T.:naml()/"
lhl'I'Cr!flrlt1dtli.'t' o! ...did s,'/Ticcs
Section 2. Section 21.0 of the Lease is hereby amended to now read as
follows:
:> /.11/ Except as specifically provided in this sedion or ill subsection 21.03
below. City shall, at its sole cost and expense and at all times, keep the Stadium and
every part thereof in good order, condition and repair, structural and non-structural
whether or not such portion of the Stadium is requiring repair, or the means of repairing
the same, are reasonably or readily accessible to City, and whether or not the need for
such repairs occurs as a result of Tenant's use, any prior use, the elements or the age of
such portion of the premises. Said maintenance and repair shall be at a level which
satisfies the standards for Class A professional baseball facilities imposed by Major
League Baseball, the National Association and the California League. and any successors
thereto, local building codes and ordinances, and any changes which may occur in any of
those from time to time. Without limiting the generality of the foregoing, City ,/'al/
main/a In ,all equipment or facilities serving the Stadium. such as plumbing, heating, air
conditioning, ventilating, electrical, lighting facilities, flIe sprinkler and/or standpipe and
hose or other automatic Hre extinguishing s)-'stem, including Hre alarm and/or smoke
detection systems and equipment, fire hydrants, fixtures, wall (interior and exterior),
.,sound system, backstop"radiwfI St'dls, foundations, ceilings, roofs, floors, wirlciows,
doors, plate glass. skylights, landscaping, d/'irLH'(/.\"S, {lurking lOls,lenccs, r('laining walls,
,i::.'I.', \id~'\l'd!ks Jlld fhll'/..'trun lu("ulc'J ill. (In. uhn/lf, or mljaccl1llo the Stadium Tl..'lhJ/1l
2
Deleted: maintenance and repair shall
include thcplayingfield.dugOUl5.
Deleted: Koreboard.
shall h....' l't!s['onsihl~' .fur malnlef7unct! and rt'lhllr of' ,he f,hlymg Jield. wId Tilt! rollllnt.'
n/oil/kllWICe (!( rh.: dugoU/s'l(' Tenant flwlher agrees !o take dOH'11 lht! nack..'ilOp prior to '!
lzoll-ho'ic"a/! t!\"L'nllltld rais,--' tlh' huck..\IOI' 'upon th..: CUn/plt.'liol1 of/he IIOIl-hasen,,/! t!vcnl,
TCIl.tnl cwu;nw.:.\ [(J (/Ssumc tlO liahility regardillg !h~' hacks lop as Ihe Cit)' shall muintuin
r'o..',\plJnsihility I()r Insp..:....'/ioll and repair of'said hat+..top. City shall provide a 24 hour
"on call" maintenance representative seven days per week.
l /() 1.1
The Cay and Tenun! acknowledJ:e that (I portiun (~(Ihel;dd
n1wlll'o..'IlWk:C al.!dll Jc.\l..'/'ih..:J in SL'(Jioll j,O-!-H'ClS 10 indudi! tht:' il1stallatiol1 al/dor
1\,/lJir I!ilhc slJdilln/ ,\~\l{S TlI,-1 l'llr hcrr:fq' {/'},recs (o continue Ihe d1!lics olinstallation
./fIef r,'/),IIt" l:ul1,-' ,~h/Jillm \CdIS as tU..'l'd,IJ The Cily shull he credited u(lol raft' o!SIfJ.(J()
.tllr ,-'och s,:ur Illar is /'L'phxr.:J {Jr n:/ltlU\'d. Th..: [ot.JI amOl/nt credited to {he CilY shull he
(k'Judt'd ul:,uiml Ilh'.fidd nwi!llL'llullct.' a..:.Jil. Tile lOwl afnounl[O hf..' C/\'Jit..:d 10 tilt! CilY
for .\tudmm _h'aI rL'plw.:f..'meJTlrepair .\l1all nol t!.Y<..:eed SI(),()()() tlnmw!ly, altluJ//gh il may
he le'ss
Section 21.02 of the Lease is hereby amended to now read as
Section 3.
follows:
21.02 .Tenant shall provide routine maintenance after baseball events, as follows:
Tenant shall remove debris from seats. walkways, grandstand and bleachers, office space,
and ticket boothy h'lhJnt shall clcc.ln puMi,: rr.:slrollms, rL'ff/OH.' Jchris fi.om Ihe pluying
u~'1d LlnJ pJrking lots. (/nJ maiflfuin Ihl;' pluYinglidJ, il/I...'luuing grouJlJskt'~pi/Jg, lil/illg,
l/li.! [/I~' j.'rc/hU"wio/l ()llh,'li~lJl;)r phl.l' hy j)r()ll..',\si()lla/~l' rruinl'd ,l!r()ut/(.bk~.'':pL'r. The
jJ!uyingli..:iJ shdll he mailllaineJ in (x(;ordallt'1! H'ilh indusTr)' Slwujurds The City shal~
clean parking lots.,and make repairs required for operation of the Stadium such as repair
of asphalt surface, irrigation system repairs, plumbing repairs, electrical repairs and
painting for cosmetic purposes.
]
. Dtieted: dri,'~ays, parlUng lou.
fences, maDwlg walls. ligns, side...a11u
andparkwa~Ioc:atedin..OD,lbout.or
adjKl:d:totbeSladium
, Deleted: City and
De~ed: jointly
Deleted: Such debris shall be bagged
and placed by T mant in a ccntrallocation
for City collection
, Deleted: remo\'e debris from the
pla)ing field and paricing lots
Deleted: and public rutrooms,
Deleted: maintain landscaping.
induding playing field maintenance,
grounds keepinS and lining and
preparation oftbe field for play by
professionally trained 8fOUI1CIskceper,
DATED:
S/G.\l Tl RE P.I(iE TO fE lSE A.I/ESD.lfE\T
/
,2006
"
APPROVED AS TO FoRM:
James F. Penman
City Anomey
I DATED:
,2006
CITY OF SAN BERNARDINO
/
By:
Mayor Patrick J. Morris
ATTEST:
Rachel Clark, City Clerk
I.\U.\D D/P/RE 66ERS S./SESALL
CUB (iF sn BER\ARDI.\O IYC,
Deleted: SAN BERNARDlNO
ST A.~[PEDE. INC.
By:
Name:
Title:
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE
AMENDMENT NO. 2 TO THE LEASE BETWEEN THE CITY OF SAN
BERNARDINO AND THE SAN BERNARDINO STAMPEDE, INC.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is hereby authorized and
directed to execute on behalf of said City Amendment No.2 to the Lease between the City of
San Bernardino and the San Bernardino Stampede, Inc., a copy of which is attached hereto,
marked Exhibit "A" and incorporated herein by reference as though fully set forth at length.
SECTION 2. The authorization to execute the above referenced agreement IS
rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage
of this resolution.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE
AMENDMENT NO. 2 TO THE LEASE BETWEEN THE CITY OF SAN
BERNARDINO AND THE SAN BERNARDINO STAMPEDE, INC.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and Common Council of the City of San Bernardino at a
meeting thereof, held on the
, 2006, by the following vote, to wit:
_ day of
Council Members:
AYES
NAYS
ABSTAIN ABSENT
ESTRADA
BAXTER
MCGINNIS
DERRY
KELLEY
JOHNSON
MC CAMMACK
City Clerk
The foregoing resolution is hereby approved this
day of
2006.
Patrick J. Morris, Mayor
City of San Bernardino
26 JAMES F. PENMAN,
City ~torney ;/
27 By: ~ :),~
O /
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AMENDMENT NO.2 TO LEASE
WHEREAS, the parties hereto agree to amend this Lease which shall be to the
benefit of both parties; and
WHEREAS, this amendment shall not affect the rights and obligations of the
parties hereto, including the right to pursue any legal or equitable remedy to enforcement
of the terms and conditions of the Lease;
Now, therefore, the Lease dated June 18, 1996, and amended on January 24,
2002, by and between the City of San Bernardino (hereinafter referred to as "City") and
San Bernardino Stampede, Inc., now known as the Inland Empire 66ers Baseball Club of
San Bernardino, Inc. (hereinafter referred to as "Tenant"), is hereby amended effective
July II, 2006 as follows:
Section 1. Section 5.04 of the Lease IS hereby amended to now read as
follows:
5.04 Tenant shall use its best efforts to control the conduct, demeanor and
appearance of its officers, agents, employees, representatives, customers, guests, invitees,
contractors and others doing business with it upon the premises. For events which
Tenant is responsible, Tenant shall have employees at the Stadium capable of
communicating instructions to persons occupying the Stadium during events provided for
in this Lease and to reasonably offer safety directions to those occupants, including, but
not limited to, the direction of an evacuation in the event of emergency. Tenant shall be
responsible for groundskeeping on a year-round basis, using employee(s) and/or
contractor(s) that are under the direct supervision of the Tenant and shall be experienced
in the care and maintenance of professional baseball fields. Tenant shall assure that
professional standards are maintained. The City shall credit Tenant $80,000 each year of
this lease, beginning on December 31, 2006. Thereafter, said amount shall be increased
yearly by the Consumer Price Index of the Bureau of Labor Statistics of the U.S.
Department of Labor for All Urban Consumers, Los Angeles-Riverside-Orange County,
All Items, (1982-1984= I 00) ("CPI") from December of the previous year through
November ofthe current year (equally a twelve-month period). For illustration, the credit
increase for 2007 shall be the percentage increase in CPI from December 2006 through
November 2007.
1/5/20062:41 PM
5.04.1 City agrees to negotiate with Tenant at a time agreed to by the
parties for the use of groundskeeping equipment owned by the City, either by purchase or
lease at a fair market value with the option to purchase, subject to the limitations of the
City Charter and the San Bernardino Municipal Code.
5.04.2 The City and Tenant are aware and acknowledge the playing field
must be maintained to a standard as required by Class A professional baseball, Major
League Baseball, the National Association and the California League. If, due to
unavoidable or unforeseen circumstances, the Tenant is unable to perform the
groundskeeping services described herein, the City agrees to negotiate with Tenant for
the performance of said services.
Section 2. Section 21.0 of the Lease IS hereby amended to now read as
follows:
21.0 I Except as specifically provided in this section or in subsection 21.03
below, City shall, at its sole cost and expense and at all times, keep the Stadium and
every part thereof in good order, condition and repair, structural and non-structural
whether or not such portion of the Stadium is requiring repair, or the means of repairing
the same, are reasonably or readily accessible to City, and whether or not the need for
such repairs occurs as a result of Tenant's use, any prior use, the elements or the age of
such portion of the premises. Said maintenance and repair shall be at a level which
satisfies the standards for Class A professional baseball facilities imposed by Maj or
League Baseball, the National Association and the California League, and any successors
thereto, local building codes and ordinances, and any changes which may occur in any of
those from time to time. Without limiting the generality of the foregoing, City shall
maintain all equipment or facilities serving the Stadium, such as plumbing, heating, air
conditioning, ventilating, electrical, lighting facilities, fire sprinkler and/or standpipe and
hose or other automatic fire extinguishing system, including fire alarm and/or smoke
detection systems and equipment, fire hydrants, fixtures, wall (interior and exterior),
sound system, backstop, stadium seats, foundations, ceilings, roofs, floors, windows,
doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls,
signs, sidewalks and parkways located in, on, about, or adjacent to the Stadium. Tenant
shall be responsible for maintenance and repair of the playing field, and the routine
7/512006 2:47PM
2
maintenance of the dugouts,. Tenant further agrees to take down the backstop prior to a
non-baseball event and raise the backstop upon the completion of the non-baseball event.
Tenant continues to assume no liability regarding the backstop as the City shall maintain
responsibility for inspection and repair of said backstop. City shall provide a 24 hour "on
call" maintenance representative seven days per week.
21.01.1 The City and Tenant acknowledge that a portion of the field
maintenance credit described in Section 5.04 was to include the installation and/or repair
of the stadium seats. The City hereby agrees to continue the duties of installation and
repair of the stadium seats as needed. The City shall be credited a flat rate of $40.00 for
each seat that is replaced or repaired. The total amount credited to the City shall be
deducted against the field maintenance credit. The total amount to be credited to the City
for stadium seat replacement/repair shall not exceed $10,000 annually without further
agreement of the parties, although said credit may be less than that amount.
Section 3. Section 21.02 of the Lease is hereby amended to now read as
follows:
21.02 Tenant shall provide routine maintenance after baseball events, as follows:
Tenant shall remove debris from seats, walkways, grandstand and bleachers, skyboxes,
office space, and ticket booth. Tenant shall clean public restrooms, remove debris from
the playing field and parking lots, and maintain the playing field, including
groundskeeping, lining, and the preparation of the field for play by professionally trained
groundskeeper. The playing field shall be maintained in accordance with industry
standards. The City shall, clean parking lots and make repairs required for operation of
the Stadium such as repair of asphalt surface, irrigation system repairs, plumbing repairs,
electrical repairs and painting for cosmetic purposes.
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7/5120062:47 PM
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SIGNATURE PAGE TO LEASE AMENDMENT
DATED:
,2006
CITY OF SAN BERNARDINO
By:
Mayor Patrick J. Morris
APPROVED AS TO FORM:
ATTEST:
Rachel Clark, City Clerk
DATED:
,2006
INLAND EMPIRE 66ERS BASEBALL
CLUB OF SAN BERNARDINO, INC.
By:
Name:
Title:
7/5120062:47 PM
4
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
'--'
From: Fred Wilson, City Manager
Subject: RESOLUTION AUTHORIZING THE
MAYOR TO EXECUTE AMENDMENT NO.2 TO
THE LEASE BETWEEN THE CITY OF SAN
BERNARDINO AND THE SAN BERNARDINO
STAMPEDE, INe.
Dept: City Manager's Office
Date: June 13, 2006
MICC Meeting Date: June 19, 2006
Synopsis of Previous Council Action:
January 24, 2002 - Mayor and Council adopt Resolution 2002-29, authorizing an amendment to the lease
with the San Bernardino Stampede, Inc.,
June 1996 - Mayor and Council approve a lease with the San Bernardino Stampede, Inc., for the use of
the City's baseball stadium
Recommended Motion:
Adopt resolution
-
Contact person: Lori Sassoon; Lemuel Randolph Phone: 5122
Supporting data attached: staff report resolution Ward: 3
agreement
FUNDING REQUIREMENTS:
Amount: None
Source: (Acct. No.)
(Acct. Description)
Finance:
'-
Council Notes:
{!;I!~; !J1o-lq-o~: .:IF/I Jf ~/;w/e6 #3
f);:t~:.J ~ &/~~/o(" - Q,;,i;t; 7/IO/CI{,
Agenda Item No. - ~ ~ , I.
71:r~ ()~
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Fred Wilson, City Manager
Subject: RESOLUTION AUTHORIZING THE
MAYOR TO EXECUTE AMENDMENT NO.2 TO
THE LEASE BETWEEN THE CITY OF SAN
BERNARDINO AND THE SAN BERNARDINO
STAMPEDE, INe.
Dept: City Manager's Office
Date: June 13, 2006
MICC Meeting Date: June 19, 2006
Synopsis of Previous Council Action:
January 24, 2002 - Mayor and Council adopt Resolution 2002-29, authorizing an amendment to the lease
with the San Bernardino Stampede, Inc.,
June 1996 - Mayor and Council approve a lease with the San Bernardino Stampede, Inc., for the use of
the City's baseball stadium
Recommended Motion:
Adopt resolution
Contact person: Lori Sassoon; Lemuel Randolph Phone: 5122
Supporting data attached: staff report resolution Ward: 3
agreement
FUNDING REQUIREMENTS:
Amount: None
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
c,/WJJt,
Agenda Item No. --1J
STAFF REPORT
Subiect:
Resolution authorizing the Mayor to execute Amendment No.2 to the lease between the City of
San Bernardino and the San Bernardino Stampede, Inc.
Backl!:round:
The City has had a lease with the San Bernardino Stampede (now the Inland Empire 66ers of San
Bernardino) for the use of the City's baseball stadium since 1996, when the stadium was first
constructed. In 2002, the lease was amended to revise some of the lease terms, and to
incorporate a partnership with Arrowhead Credit Union to rename the stadium Arrowhead Credit
Union Park.
Representatives from the City and the Team have agreed in principle that it is in the best interests
of both parties to reassign responsibility for playing field maintenance from the City to the Team.
Under the current lease, the City is responsible for groundskeeping and related functions, with
the City and the Team equally sharing the cost. The gross cost for salaries and benefits for
groundskeeping in FY 05-06 is anticipated to total $153,600, and is budgeted at $156,200 for FY
06-07. The Team's reimbursement to the City of its 50% of these costs is one of the subjects of
an ongoing dispute. For the last several years, the team has not paid the full 50% of these costs.
While the City's groundskeeper and crew have done an excellent job maintaining the fields, this
work requires very long hours during the baseball season, resulting in employee burn-out. The
incumbent groundskeeper would like to return to the regular park maintenance functions, and
there are currently openings available to accommodate the full-time employees in that area. The
Team believes it can provide the same level of service at a lower cost, which will provide
savings for both parties. The proposed lease amendment (attached) details the roles of the Team
and the City in greater detail.
The proposed lease amendment will assign the groundskeeping and other related functions to the
Team effective July 1,2006. The City will compensate the team $80,000 per year beginning in
this first year, with the amount escalating by 2% annually.
Financial impact:
The total budget for salaries and benefits for the stadium is estimated to be $156,200 in FY 06-
07. With the approval of this lease amendment, the budget can be amended to delete these
expenditures. Some maintenance and operations (M&O) savings will also be realized. The new
expenditure of $80,000 will be budgeted in Account No. 133-461-5505 to reflect the payment
that will be made to the Team in accordance with the lease amendment.
Revenues to the Stadium Fund, which were projected to total $150,000, will also be reduced to
reflect the loss of the 50% reimbursement from the Team.
These actions will result no net impact to the Stadium Fund as follows:
Delete salarylbenefits costs: $156,200
Reduce misc. M&O costs: 2,000
Loss of 50% reimbursement: (78, I 00)
(estimated amount)
Payment to Team per lease amendment:
Net cost:
(80.000)
$ -0-
If the lease amendment is approved, the final FY 2006-07 Budget will be amended to reflect
these changes.
Recommendation:
Adopt resolution, and authorize the Director of Finance amend the final FY 06-07 Budget as
outlined in the staff report.
Strikethrough format 6-12-06
AMENDMENT TO LEASE
The Lease dated June 18, 1996, and amended on January 24, 2002, by and
between the City of San Bernardino (hereinafter referred to as "City") and San
Bernardino Stampede, Inc. (hereinafter referred to as "Tenant"), is hereby amended as
follows:
Section l.
follows:
5.40 Tenant shall use its best efforts to control the conduct, demeanor and
Section 5.04 of the Lease is hereby amended to now read as
appearance of its officers, agents, employees, representatives, customers, guests, invitees,
contractors and others doing business with it upon the premises. For events which Tenant
is responsible, Tenant shall have employees at the Stadium capable of communicating
instructions to persons occupying the Stadium during events provided for in this Lease and
to reasonably offer safety directions to those occupants, including, but not limited to, the
direction of an evacuation in the event of emergency. Tenant shall be responsible lilr
grouHd\'kceping, Oil a..Y~a1"-:roUlld,~asis~l1siflgt'f11pl()yee(\) and/or cmltractor(\') thatP~('
under the pirecl supervision of the]enanl and shall be experienced in the care and
maintenance of professional baseball fields. Tenant .,hall assure that professional
standards are maintained. the Cit)'(lgrt>e.vf()Cl'edAt, Tt:nant $80,000 annua/~v beginning
with the 2006 season. and increasing by ]% annually thereafter. in rCf.'ogllition (~( fhe
vall/f;.~ (~lth(;} provision (~f groundskeeping services by the Tenant.
Section 2.
follows:
21.0 Except as specifically provided in this seetio/l or in subsection 21.03
below, City shall, at its sole cost and expense and at all times, keep the Stadium and
Section 21.0 of the Lease is hereby amended to now read as
every part thereof in good order, condition and repair, structural and non-structural
whether or not such portion of the Stadium is requiring repair, or the means of repairing
the same, are reasonably or readily accessible to City, and whether or not the need for
such repairs occurs as a result of Tenant's use, any prior use, the elements or the age of
such portion of the premises. Said maintenance and repair shall be at a level which
.' r Deleted: City and Tenant agrees-~~.'---l
equally provide funding for two grounds. ,
I keepers, approved by both City and 'I
Tenant, on a full.time equivalent,
'0....__...__.__.._. __""",..."..._j
"jo;;hOted,. -- --l
, Deleted: Said groundskeepers shall be 1
City employees
~general .J
[Deleted: City.. ......,.)
f'i';leted: and City shall cooperate in the'l
, direction and supervision of the I
u~roundskeepers to )
'[ Deleted: The hiring of the
groundskeepers shall be understood to be
, approximately $42,000 in value for each
, groundskeeper
satisfies the standards for Class A professional baseball facilities imposed by Major
League Baseball, the National Association and the California League, and any successors
thereto, local building codes and ordinances, and any changes which may occur in any of
those from time to time. Without limiting the generality of the foregoing, City shall
maintain,all equipment or facilities serving the Stadium, such as plumbing, heating, air
conditioning, ventilating, electrical, lighting facilities, fire sprinkler and/or standpipe and
hose or other automatic fire extinguishing system, including fire alarm and/or smoke
detection systems and equipment, fire hydrants, fIXtures, wall (interior and exterior), .
sound system, foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights,
driveways. parking lots, fences, retaining }Falls. signs, sidewalks alld parkways located
in, 011, aboUl, or l1(jjace1l! to the Smdiwn. Tenant shall be responsiblt~ fhr maintenance
and repair (~l,he pla)'ingfiefd. dugouts, backstop, stadiunI Sf.'ats. and landscaping'\"({~r_.
agrees to negotiate with Tenantfhr the use q(ground\'keeping equipment <.Hvned by the
Cilv. eilher bv purchase or lease at a reasonable rale willi Ihe option to purchase. City
shall provide a 24 hour "on call" maintenance representative seven days per week.
Section 3.
follows:
21.02 .Tenantshall,provide routine maintenance afterbasebaU events, as follows:
Tenant shall remove debris from seats, walkways, grandstand and bleachers, office space,
Section 21.02 of the Lease is hereby amended to now read as
and ticket booth... TIle Tenant sJudICli;'(IJ1Pu/JIi~' restroom\', J'(Jm()ve debri~j;'(ml fhe
playing field and parking lots, llnd ma;,uain landscaping. including playing jield
maintenance. ground,; kE'l!ping and fining und preparation qf the field jbr play hy
proji>ssionallv lrained groundskeeper. The City shal~ clean parking lots"and make repairs,.
required for operation of the Stadium such as repair of asphalt surface, irrigation system
repairs, plumbing repairs, electrical repairs and painting for cosmetic purposes.
2
r 'J
' Deleted: maintenance and repair shall
~clude the playing field, dugouts,
("''''.''''''..-------......-..-....-------
-'1 Deleted: scoreboard
'--.....-..----.--"'.
-[ Deleted: backst~;:~__~
, ,
.-1 Deleted: driveways, parking lots, I
fences, retaining walls, signs, sidewalks
! and parkways located in, on, about, or .'1
! adjacent to the Stadium
'....-..-------..-.---..--
- ..r[;Id;;d;""c;'~'~d
l Deleted: jointly
]
,. ]
- r Deleted: Such debris shall be bagged ]
I and placed by Tenant in a central location
for City collection
_ -~ Deleted: remove debris from the
i playing field and parking lots
'>,...-,......,'..,'..............,".."'''''''-.....-..-..-----.-..---...-....,-..-
\ Deleted: and public restrooms,
u~
I
I
I
Deleted: maintain landscaping,
including playing field maintenance,
grounds keeping and lining and
preparation of the field for play by
~~sional~,~ trained groundskeeper,
DATED:
APPROVED AS TO FORM:
James F. Penman
City Attorney
DATED:
AMENDMENT TO LEASE
,2006
,2006
CITY OF SAN BERNARDINO
By:
Mayor Patrick J. Morris
ATTEST:
Rachel Clark, City Clerk
SAN BERNARDINO STAMPEDE, INC.
By:
Name:
Title:
3
1
2
3
4
5
6
7
8
9
10
11
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE
AMENDMENT NO. 2 TO THE LEASE BETWEEN THE CITY OF SAN
BERNARDINO AND THE SAN BERNARDINO STAMPEDE, INC.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is hereby authorized and
directed to execute on behalf of said City Amendment No.2 to the Lease between the City of
San Bernardino and the San Bernardino Stampede, Inc., a copy of which is attached hereto,
marked Exhibit "A" and incorporated herein by reference as though fully set forth at length.
12 SECTION 2. The authorization to execute the above referenced agreement is
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage
of this resolution.
III
III
III
III
III
III
III
III
III
III
III
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 Approved as to
Form:
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE
AMENDMENT NO. 2 TO THE LEASE BETWEEN THE CITY OF SAN
BERNARDINO AND THE SAN BERNARDINO STAMPEDE, INC.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and Common Council of the City of San Bernardino at a
meeting thereof, held on the
_ day of
, 2006, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN ABSENT
ESTRADA
BAXTER
MCGINNIS
DERRY
KELLEY
JOHNSON
MC CAMMACK
City Clerk
The foregoing resolution is hereby approved this
day of
2006.
Patrick J. Morris, Mayor
City of San Bernardino
25
26 JAMES F. PENMAN,
City Attorney
27 By:
28
AMENDMENT TO LEASE
The Lease dated June 18, 1996, and amended on January 24, 2002, by and
between the City of San Bernardino (hereinafter referred to as "City") and San
Bernardino Stampede, Inc. (hereinafter referred to as "Tenant"), is hereby amended as
follows:
Section 1. Section 5.04 of the Lease IS hereby amended to now read as
follows:
5.40 Tenant shall use its best efforts to control the conduct, demeanor and
appearance of its officers, agents, employees, representatives, customers, guests, invitees,
contractors and others doing business with it upon the premises. For events which Tenant
is responsible, Tenant shall have employees at the Stadium capable of communicating
instructions to persons occupying the Stadium during events provided for in this Lease and
to reasonably offer safety directions to those occupants, including, but not limited to, the
direction of an evacuation in the event of emergency. Tenant shall be responsible for
groundskeeping on a year-round basis, using employee(s) and/or contractor(s) that are
under the direct supervision of the Tenant and shall be experienced in the care and
maintenance of professional baseball fields. Tenant shall assure that professional standards
are maintained. The City agrees to credit Tenant $80,000 annually beginning with the
2006 season, and increasing by 2% annually thereafter, in recognition of the value of the
provision of groundskeeping services by the Tenant.
Section 2. Section 21.0 of the Lease is hereby amended to now read as
follows:
21.0 Except as specifically provided in this section or in subsection 21.03
below, City shall, at its sole cost and expense and at all times, keep the Stadium and
every part thereof in good order, condition and repair, structural and non-structural
whether or not such portion of the Stadium is requiring repair, or the means of repairing
the same, are reasonably or readily accessible to City, and whether or not the need for
such repairs occurs as a result of Tenant's use, any prior use, the elements or the age of
such portion of the premises. Said maintenance and repair shall be at a level which
satisfies the standards for Class A professional baseball facilities imposed by Major
League Baseball, the National Association and the California League, and any successors
thereto, local building codes and ordinances, and any changes which may occur in any of
those from time to time. Without limiting the generality of the foregoing, City shall
maintain all equipment or facilities serving the Stadium, such as plumbing, heating, air
conditioning, ventilating, electrical, lighting facilities, fire sprinkler and/or standpipe and
hose or other automatic fire extinguishing system, including fire alarm and/or smoke
detection systems and equipment, fire hydrants, fixtures, wall (interior and exterior), ,
sound system, foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights,
driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways located
in, on, about, or adjacent to the Stadium. Tenant shall be responsible for maintenance
and repair of the playing field, dugouts, backstop, stadium seats, and landscaping,. City
agrees to negotiate with Tenant for the use of groundskeeping equipment owned by the
City, either by purchase or lease at a reasonable rate with the option to purchase. City
shall provide a 24 hour "on call" maintenance representative seven days per week.
Section 3. Section 21.02 of the Lease is hereby amended to now read as
follows:
21.02 Tenant shall provide routine maintenance after baseball events, as follows:
Tenant shall remove debris from seats, walkways, grandstand and bleachers, office space,
and ticket booth.. The Tenant shall clean public restrooms, remove debris from the
playing field and parking lots, and maintain landscaping, including playing field
maintenance, grounds keeping and lining and preparation of the field for play by
professionally trained groundskeeper. The City shall, clean parking lots and make repairs
required for operation of the Stadium such as repair of asphalt surface, irrigation system
repairs, plumbing repairs, electrical repairs and painting for cosmetic purposes.
2
AMENDMENT TO LEASE
DATED:
,2006
CITY OF SAN BERNARDINO
By:
Mayor Patrick 1. Morris
APPROVED AS TO FORM:
ATTEST:
James F. Penman
City Attorney
Rachel Clark, City Clerk
DATED:
,2006
SAN BERNARDINO STAMPEDE, INC.
By:
Name:
Title:
3
. ..
.
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 711 D 10 0 Item #
Vote: Ayesli"J~~~ 3
Change to rnotion to amend original documents 0
LJI
JOOb- ~<;~
Absent '6---
Resolution #
Abstain 'e--
Companion Resolutions
NuII/VoidAfter: ~D days/ ql~f\lo
Resolution # On Attachment~ ~ution of attachment stored separately: 0
PUBLISH 0 POST 0 RECORD W/COUNTY 0 By:
D.. Sro'''' Moym ~/II~
Date of Mayor's Signature: 7,' O(p
Date of Clerk/CDC Signature: Ofp
Reso. Log Updated: )a
Seal Irnpressed: ~
Reso. # on StaffRepo~:
Date Merno/Letter Sent for Signature:
I" Rerninder Letter Sent:
Date Returned:
2nd Rerninder Letter Sent:
Not Returned: 0
Request for Council Action & Staff Report Attached: Yes-X- No By_
Updated Prior Resolutions (Other Than Below): Yes NoL By_
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Yes NoL By_
Updated CDC Personnel Folders (5557): Yes Not By_
Updated Traffic Folders (3985,8234,655,92-389): Yes No By_
Copies Distributed to:
Anirnal Control
City Administrator
City Attorney
Code Cornpliance
Developrnent Services
Others:
D~EDA
ft~acilities
.....a-ti r\.R... Finance
o Fire Department
o Human Resources
o Information Services
o Parks & Recreation
~ VVt6}tt~ Police Departrnent
o Public Services
o Water Department
o
~ti~
o
o
o
Nm"'~ ~ ~ ft
~ ~~. ~~~8J1~~~ -. r .~!ftV
Ready to File: _
Date:
Revised 12/18/03
. .
;
;.
OFFICE OF THE CITY CLERK
RACHEL G. CLARK, C.M.C. - Crrv CLERK
300 North "D" Street. San Bernardino. CA 92418-0001
909.384.5002. Fax: 909.384.5158
www.sbcity.org
'"
July 18, 2006
David Colella
Law Offices of Fullerton, Lemann, Schaefer, and Dominick
215 N. "D" Street, I 51 Floor
San Bernardino, CA 92401
Dear Mr. Colella: .
At the Mayor and Common Council meeting of July 10, 2006, the City of San Bernardino
adopted Resolution No. 2006-258 - Resolution authorizing the Mayor to execute Amendment No.
2 to the lease between the City of San Bernardino and the San Bernardino Stampede, Inc.
Enclosed is one (I) original agreement and two (2) duplicate original agreements to be executed
by the San Bernardino Stampede, Inc. Please obtain signatures in the appropriate locations and
forward a fully executed original agreement and one (I) duplicate executed agreement to the City
of San Bernardino. Please retain one executed duplicate agreement for your records.
Please be advised that the agreement will be null and void if not executed within sixty (60)
days or by Friday, September 8, 2006.
If you have any questions, please contact Dodie Otterbein, Records Management Coordinator at
(909) 384-5002.
Sincerely,
Yet'l1 cltfJ...}Y'wILly,','-..-
Sandra Medina
Assistant to the City Clerk
Enclosure
Cc: Lori Sassoon, Assistant City Manager
CITY OF SAN BERNARDINO
ADOPTED SHARED VALUES: Integrity. Accountability. Respect for Human Dignity. Honesty