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HomeMy WebLinkAbout41-City Manager . . . ORIGINAL " 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: 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. III III III III III III III III III III III fii). 'i) )/Jl) [1 {;. 1 2 3 4 5 6 7 8 9 10 11 12 13 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 / 28 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. III III III 7/5120062:47 PM 3 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