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MAYOR & COMMON COUNCIL AND
COMMUNITY DEVELOPMENT COMMISSION
MEETING BACKUP
MEETING DATE: May 15, 2006
DEPUTY: Linda Hartzel
ITEM NO. STATUS
6 Continued to July 10, 2006
II Continued to June 20, 2006
41 Continued to July 10, 2006
43 Continued 10 Julv 10, 2006
45 Continued to July 10, 2006
46 Laid over to July 10, 2006
R51 Continued to June 20, 2006
.
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, INC.
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:
lP!illDc,
Agenda Item No. -L1
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 I, 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:
Seetion 1.
follows:
Section 5.04 of the Lease IS hereby amended to now read as
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 ,~h({1I he rcspollsihle lor
gr()und\'keq)iIlJ~ on u year-round basis.. using em/J/oyeds) (UuLor l.'Olllrdc[or(S) dIU! .pre
under the tiir~C1 supervision of the .Tenant and shall be experienced in the care and.
maintenance of professional baseball fields. Tenant .,hall assure that professional.
standards are maintained. ,7he Cit)' agrees to credit Tenant Slj{),OOO ml1lUld~\' beginning
with the 2()()(' SCdSOn. und increasing hy ]0 <J (JI1lUWUy therc(~/i('r. in recoxnhilll1 (!( Ihe
vdluc uFthe pI'ol'i,-io!l o(g!'o/llld'lkccping .h:rvices bv tIlL! jf.::nanl.
Section 2.
follows:
21.0 Except as specifically provided in rhis s"ctio/l or in subsection 21.03
below, City shall, at its sole cost and expense and at all times, keep the Stadium and
Section 2 1.0 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
. Deleted: City and Tenant agrees to
equally provide funding for two grounds-
keepers, approved by both City and
_~~__~~~~~~'~l_~~~~~~,
, Deleted:
; Deleted: Said groundskeepers shall be
, City emp]~::s~.~"=_~~_
. Deleted: general
r----------
Deleted:
Deleted: and City shall cooperate in the
direction and super,1Sion of the
~_~o~d~_ke_~~!_~_:o_=~~=______
Deleted: The hirmg of the
groundskeepers shall be understood to be
approximatelyS42,OOO in value for each
~~~~dskeeper
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, loca] 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, eil.\" ,;'u//
mainlain.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 andlor smoke
detection systems and equipment, fire hydrants, fixtures, wall (interior and exterior), .
sound system, ,foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights,
dr;FCWUYS. parking lots, .knc~)s, rl'lafning lyall,", signs, .'iicA~wu/ks and parkwuys /ocwcu
in. 011, O/)OUl. ()I' (/t!iact'lIf tu the Stadium. TL'nanl shull he rcsponsihle .!ilr mailllCllunce
alld rc/wir of Il1e j)!uyillg lidd. dugolfts. hacks/op, stadiunI seals, alld landscaping" eft)
u;:f"i.'t's !o !legoriafc lI'llIJ Tendnllix the use ofgrounuskccf'lIIg equipment mrlled hy rIll:
Cfly, eilher hy /mrch.f.';C or !cu.,'c (I( a rl:osonuh/c rule ll'ilh Ihe o/Jlio17 10 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 boathy The Tenant shall clean public restroom,', remove dehris jhml 1he
/J/uying field and fJarking lots. and nwil1laill lun(l\caping including playing jield
maimellance. grounds keering and lining lInd prerarufio!l o( fhc field liw rId)' hy
proj('sSionU!/F frained Kround.\kel:per. The City shal~ clean parking lo!s.,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
Deleted: maintenance and repair shall
include the playing field, dugouts,
- Deleted: scoreboard
~ed: backsto~,__
. Deleted: driveways. parking lots,
fences, retaining walls, signs. sidewalks
and parkways localedin, on, about. or
adjacent to the Stadium
" Deleted: City and
. Deleted: jointly
Deleted: Such debris shall be bagged
and placed by Tenant in acenlra! location
for City collection
- Deleted: remove debris from the
playing field lots
----- ,.--.........-..,
;o_Delet~"",~~.p~blic restrooms,
Deleted: maintain landscaping.
including playing fie1d maintenance.
grounds keeping and lining and
preparation of the field for play by
__~~!~~~~~_~Iy trained groun~~eepe~._
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