DEPARTMENT: Parks and Recreation
DEPARTMENT HEAD: Xavier Urrutia
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Amendment to the Softball Lease and Management Agreement with San Antonio Amateur Softball Association
SUMMARY:
This ordinance authorizes Amendment No. 2 to the Softball Lease and Management Agreement with San Antonio Softball Association to incorporate food and beverage concessions and implement other minor contract changes.
BACKGROUND INFORMATION:
The City is a party to a Softball Lease and Management Agreement with the San Antonio Amateur Softball Association (SAASA), a non-profit organization established in 1959 and the local affiliate of the Amateur Softball Association of America. Under the terms of this Agreement, which commenced in the summer of 2012, SAASA is responsible for the operation, management and maintenance of the City's Class A softball complexes and adult softball program. The complexes are Kennedy Softball Complex in Kennedy Park, Koger Stokes Softball Complex in San Pedro Springs Park and Alva Jo Fischer Softball Complex in Lady Bird Johnson Park.
SAASA has provided food and beverage concessions at the softball complexes for many years; since 1975 at Alva Jo Fischer, 1981 at Kennedy, and 1992 at Koger Stokes. The term of the current concession agreement ends on December 31, 2013, and the proposed amendment will begin on January 1, 2014.
Incorporating the concessions functions into the existing Softball Lease and Management Agreement is recommended to provide for seamless and integrated operations at the complexes. Revenue from concessions will further support SAASA's obligations to operate, manage and maintain these City complexes to provide quality public recreational activities.
The agreement allows the City's Parks and Recreation Department to utilize the complexes for its youth softball program in the summer and fall of 2012. By mutual agreement, the City has continued this use in 2013 and expects to continue it at least through the summer of 2014. In consideration of this extended use, the City will continue to pay the cost of utility services at the Complexes until such time as the youth program use ceases.
The current agreement established field reservation fees for adult and youth use at the City rate that was in effect at that time with limitations on future increases. The City's adopted FY 2014 operating budget reflects an increase in the Parks and Recreation Department's field rental fee structure. The Amendment includes a provision allowing SAASA to establish its rental rates, which will be subject to the approval of Parks and Recreation and may not exceed rates for comparable facilities. This change will allow SAASA the flexibility to establish rental rates based on market conditions.
Additional changes in the Amendment include SAASA's commitment to add healthier foods and beverages to their menu offerings and the addition of Liquor Liability insurance coverage associated with its concession operations.
ISSUE:
This Ordinance will authorize Amendment No. 2 to the Softball Lease and Management Agreement to incorporate concessions and implement other minor contract changes. The Amendment is subject to the approval of City Council.
ALTERNATIVES:
The City could elect not to authorize this Amendment and develop and release a solicitation for a third party to provide this service.
FISCAL IMPACT:
Under the current concession agreement, SAASA pays the City 18% of gross sales, providing payment to the City of $49,833.06 in FY 2013. This Amendment allows SAASA to retain all revenue associated with concessions, thus allowing SAASA to fully meet all of their obligations under the Agreement, which include the operation, management and maintenance of these three softball complexes. All City maintenance and repair costs associated with the facilities will cease and SAASA will pay all expenses, with exception of utilities. This will result in approximately $20,000 of savings as compared to FY 2013. In consideration of the City's youth softball program use, the City will continue to pay the cost of utilities at the Complexes.
RECOMMENDATION:
Staff recommends approval of the Amendment No. 2 of the Softball Lease and Management Agreement.