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HomeMy WebLinkAbout19-Parks & Recreation MAYOR & COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION MEETING BACKUP MEETING DATE: 12/18/06 DEPUTY: Linda Hartzel ITEM NO. STATUS ]9 Continued to January 8, 2007 R27 Continued to January 22,2007 32 Ordinance laid oyer to January 8, 2007 , CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Date: December 5, 2006 Subject: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE A MANAGEMENT SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND FOR THE GAME, LLC TO PROVIDE MANAGEMENT SERVICES AT THE SAN BERNARDINO SOCCER COMPLEX FOR THE PERIOD OF JANUARY I, 2007 THROUGH DECEMBER 31, 2012. From: Lemuel P. Randolph, Director Dept: Parks, Recreation & Community Services Dep!. MICC Meeting Date: December 18, 2006 Synopsis of Previous Council Action: May 17,2004 - Resolution 2004-131, Approval of consultant agreement with Bruce C. Daniels for management of Soccer Complex. June 19,2006 - Resolution 2006-229, Approval of services agreement with Coast Soccer League for management of Soccer Complex through September 18, 2006. September 5, 2006 - Resolution 2006-318, Approval of services agreement with Coast Soccer League for management of Soccer Complex through December 31, 2006. Adopt Resolution. ./ /J~/ /' i ~~.~ / ?/' Igna re Recommended Motion: Lemuel P. Randolph Phone: 5030 Contact person: Supporting data attached: Staff Report Reso & Cootract Ward: 7 FUNDING REQUIREMENTS: Amount: None Source: (Ace!. No.) NIA (Ace!. Description) NIA Finance: Council Notes: Agenda Item No. / ~/!C? / O(p . e e CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the Mayor to execute a Management Services Agreement between the City of San Bernardino and For The Game, LLC to provide management services at the San Bernardino Soccer Complex for the period of January 1,2007 through December 31, 2012. Background: A management services agreement with Coast Soccer League (CSL) for the management of the San Bernardino Soccer Complex ends on December 31, 2006. A Request For Proposal for professional management of the San Bernardino Soccer Complex was distributed to a list of prospective sports venue management companies. Listed companies included: U.S. Youth Soccer Los Angeles Memorial Sports Arena Coast Soccer League San Bernardino ChamberofComtnerce Cal South Los Angeles Galaxy NOS Events Center Oregon Adult Soccer For the Game, LLC NeugeOOw"& A;mciates SB. Cmvention& VJSitDrs Bureau For The Game, LLC was the only company to submit a proposal that met the RFP requirements. An initial interview was conducted by Department Staff on November 14, 2006, followed by an interview on November 30, 2006, with the City Manager and Director of Parks, Recreation and Community Services. Since the opening of the Complex in 1996, the City has attempted different management strategies for the Complex. During the first 6-years of operation the CYSA - South San Bernardino Soccer Foundation was responsible for the facility's management. As a result of poor performance of this operator, a lawsuit was filed resulting in the City assuming management authority. Over the last 5 years the City has provided management oversight through various combinations of direct and contracted services. These services have included (2) management contractors. The current management operator, CSL is also a major facility user through its hundreds of affiliated soccer teams. This puts CSL in a competitive advantage when competing youth soccer organizations are negotiating for event venues during specific weekends. For The Game, LLC has provided a proposal to manage the Complex as an independent, private management team unaffiliated with current users of the complex. For The Game, LLC proposes a 5-year management plan for the Soccer Complex that involves comprehensive management services of all operations, including turf and well maintenance, field reservation and preparation, parking concessions, food concessions, non-food concesssions marketing, sponsorship, community relations, and building maintenance. The company has assembled a professional team of consultants and partners that collectively bring a host of experience in the areas of venue and event management; profitable food and beverage facility operations; sports field turf management and maintenance; soccer specialty retail sales; I. e e e professional, amateur, and youth soccer and other sport marketing; soccer and other sport league and tournament operations and sponsorship management. They propose providing a first year operating budget of $847,0.0.0. growing to a fifth year budget of $1,0.28,0.0.0., with immediate capital investment improvements to the infrastructure of $30.0.,0.0.0.. For the Game will be responsible for the creation and funding of the entire operating budget which will be funded through revenue streams listed in the agreement including concessions, field use, parking, sponsorships etc. They also guarantee the City a monthly payment of $5,0.0.0. and a 50.% share of net revenue. In addition they have agreed to assure their performance obligation by opening an irrevocable $250.,0.0.0. letter of credit. Financial Impact: Upon approval of this agreement starting January 1,20.0.7, 10.0.% of the soccer complex operating cost will be the responsibility of For the Game LLC. For the Game will also be required to make a monthly payment of$5o.o.o. to the City. This payment will be used as an offset if there is a fund balance deficit in the FY 0.6/0.7 Soccer Fund due to any outstanding costs incurred by the City through December 31, 20.0.6. Any remaining revenue from the monthly payments will be held in the Soccer Fields capital account. Recommendation: Adopt Resolution.