Loading...
SR - AGR-3473.D - BALL FIELD MAINTENANCE ADULT SOFTBALLAGENDA ITEM Meeting Date: October 14, 2014 ReviewedNer' ied By: City Manager TO: Honorable Mayor and Finance Dire for Members of the City Council To Be Present y: Marie Knight THRU• John W. Sibley X Cons Calendar _ City Mgr Rpts • City Manager Council Reports _ Legal Affairs Boards /Crates _ Public Hrgs Admin Reports Plan/Environ FROM: Marie Knig 01� Community Se ices Direct r 1. SUBJECT Ball Field Maintenance and Adult Softball Program Services Agreement 2. SUMMARY Agreement between the City of Orange and Major League Softball Inc., for the maintenance of City -owned and/or operated adult softball fields, the administration of the City's adult softball program, and the use of the Maintenance Garage at Hart Park. 13. RECOMMENDATION Approve the Ball Field Maintenance and Program Services Agreement and authorize the Mayor and City Clerk to execute the agreement on behalf of the City. 4. FISCAL IMPACT It is estimated the City will receive approximately $78,000 in annual General Fund revenue through this agreement for the administration of the adult softball program. In addition, the agreement saves the City an estimated $154,000 in administrative costs to run the program. 5. STRATEGIC PLAN GO 3: Enhance and promote quality of life in the community b. Deliver high quality and safe recreational, social, environmental, educational and cultural services. e. Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services. ITEM 10/14/14 1 6. BACKGROUND and DISCUSSION J Background In 1986 the City contracted with Major League Softball, Inc. (MLS) to assign umpires and scorekeepers only for the City's adult softball program to save City resources that would be spent to provide these portions of the program in- house. Since this time, the following elements have been added to this agreement: 1) a Lease Agreement which allows MLS to utilize a small portion of the Maintenance Garage at Hart Park as an office and equipment storage area, 2) the City revised the agreement to have MLS provide ball field maintenance services, which include standard ball diamond maintenance, athletic infield treatments, and ball field preparation (lining and dragging of each infield in preparation for a game). Initially these services were provided by in -house maintenance staff and the contracting of these services was an expenditure savings to the General Fund of $16,875 and 3) the City replaced the umpire /scorekeeper contract service package with a full- service Operating Services Agreement that provides for program administration, officiating services, storekeeping services, and field maintenance /preparation as it relates to adult softball. Under this agreement the City retains a portion of the registration fees paid by each team to cover our costs. Research has been conducted as each contract renewal period approached to find comparable companies that provide the same services to the scale of MLS, however, the research has concluded that there is not a local corporation or organization that can provide these same services. In January 2010, the City entered into a new five year full- service agreement (Operating Agreement, the Ball Field Maintenance Agreement and the Maintenance Garage Lease Agreement) with MLS. The differences from the prior contract included the following: 1) a revised methodology for calculating the revenue paid to the City by MLS and 2) the lease rate of the Maintenance Garage was increased from $400.00 to $510.00 per month for use of increased space at the Maintenance Garage. Since MLS was determined to be the only full- service contract provider, the contract with MLS was considered on a "sole source" basis. This agreement is set to expire on January 1, 2015. Discussion At this time staff has negotiated with MLS for another five year frill- service agreement. Through staff research and communication with other local municipalities, staff has again determined Major League Softball is the only local "full service" (program administration, officiating services, storekeeping services, awards and field maintenance /preparation) adult softball provider to meet the requested services offered by the City of Orange. N ITEM 10/14/14 Services provided to the City of Orange through this agreement. 1. Softball Leagues - This agreement allows MLS to provide our City -wide Adult Softball Leagues. Currently, the adult softball program utilizes Hart Park Diamonds #2 and #3, Shaffer Park and Steve Ambriz Memorial Park six days a week, Monday — Friday and Sundays. Approximately 11,000 adults a year participate in four sessions annually. Three sessions are 10 weeks long and one is 8 weeks. The current cost per team per session for a ten game season is $600.00 for new teams and $565.00 for returning teams, which includes all umpire, scorekeeper, and forfeits bond fees. The fee proposed for the new agreement is $615.00 for new teams and $580.00 for returning teams due to an increase in administrative costs and in an effort to maintain a competitive rate. This proposed fee is equivalent to the City of Fullerton which offers a comparable league to the City of Orange. Based on these fees, MLS will receive approximately $269,875 in registration fees, with the remainder going straight to the umpires and scorekeepers. Per the agreement, the City will received 29% of those fees, which is approximately $78,000. MLS uses the remainder of the fees to fund their operations which includes; collecting and processing all registration fees, submitting quarterly league payments, program marketing, field preparation and maintenance, game schedules, electronic scorekeeping, league awards, staff and umpire schedules, as well as complete online registration, league statistics and ball field maintenance and insurance. 2. Tournaments - In addition to annual league play, this agreement will provide for one -day tournaments at City of Orange facilities. These one -day tournaments allow participants to compete in a variety of softball formats of play and also serve as a key marketing tool to showcase the adult softball programs offered in the City of Orange and increase future participation. 3. Ball Field Maintenance - MLS shall provide Ball Field Maintenance Services for the Shaffer Ball Field, Steve Ambriz Fields #1 & #2, and Hart Ball Fields #2 & #3. The MLS Standard Ball Field Maintenance System and Infield Treatment Program ensure softball fields are safe and in high quality game conditions. Various services provided by MLS in the agreement include: providing infield mix, laser leveling, edging of the infield perimeters, conduct base peg measurements and ball field lighting tests, minor infield grading and sod replacement, and scarifying. MLS will also clean out dugouts, paint foul lines and coed arcs (City will provide paint), water -blast the infield perimeter borders every other week and drag and water fields before each day's games. In addition to providing high quality softball fields, the Ball Field Maintenance program provided by MLS saves the City approximately $61,674 in staff costs that would otherwise need to be funded by the General Fund. 3 ITEM 10/14/14 4. On -Site Presence — MLS desires to continue to lease a portion of the Maintenance Garage at Hart Park for administrative services and activities directly related to the Ball Field Maintenance and Softball Program Services Agreement. The current monthly lease fee is $510.00 and it will be increased 12% to $575.00. The monthly lease fee is based on the following factors: the Maintenance Garage is a specialized space; there is an inherent benefit to the City and its adult softball participants of having MLS on -site in Orange; and that there is no other market for use of this space. The increase represents an adjustment for the current estimated value of the use of the facility, which was increased in 2010 based on square footage only. The lease fee has not otherwise been increased since 1994. Cost Recovery Research & Proiected Revenue The Community Services Department has created an adult softball rate model to ensure the adult softball program is full cost recovery to the City. Recovery items included in the rate model are staff time, maintenance items, lighting, overhead, and an amortized field use cost. It was determined the City needs to retain 29% of the gross revenue collected for league fees to fully offset our costs. For one -day tournaments it has been determined the City needs to retain 18% of the gross revenue collected for tournament fees to fully offset its costs. It is estimated the City will receive approximately $78,000 in annual General Fund revenue through this agreement which is 29% on average of the registration fees. 7. ATTACHMENTS 77::::1 • Ball Field Maintenance and Adult Softball Program Services Agreement 4 ITEM 10/14/14