TITLE
MOTION AUTHORIZING RELEASE OF REQUEST FOR PROPOSALS (RFP) FOR THE OPERATION OF ARNAIZ SOFTBALL COMPLEX
RECOMMENDATION
It is recommended that the City Council adopt a motion approving the findings and authorizing a Request for Proposals (RFP) for the management, operation, and maintenance of Arnaiz Softball Complex; and authorizing the City Manager to take appropriate actions to carry out the purpose and intent of the motion.
BODY
Summary
The Arnaiz Softball Complex is one of the premier softball complexes in Northern California. The complex is currently well maintained and operated, attracts over thirty-two (32) softball tournaments per year, and has hosted the California Collegiate Athletic Association (CCAA) Division II Women's Softball Tournament since 2011.
In 2009, the City purchased the property from Morada Investments, LLC, and entered into a three-year exclusive agreement with Morada Investments, LLC, to operate and maintain the softball complex with an option to renew for two additional one year terms. John Furhman operated the softball complex on behalf of Morada Investments, LLC. In June of 2013, Morada Investments, LLC, requested, and the City agreed to, assignment of the agreement from Morada Investments LLC, directly to John Furhman per Section 11 of the Agreement. This assignment was executed in September of 2013. John Furhman operated the facility under Morada Investments LLC, and continues to manage and operate the during the last and final option term in the agreement which expires July 31, 2014.
Before the Agreement expires, the City will need to establish a process to evaluate and choose a new operator by releasing a Request for Proposals (RFP). The goal of this RFP is to select a qualified vendor with the proven ability to manage, operate and maintain a facility of this caliber and size. The best qualified operator should understand how to operate this facility (without subsidy by the City) while generating guaranteed revenue for the City.
DISCUSSION
Background
The Arnaiz Softball Complex was privately operated for five years before the City used $3,500,000 from four existing assessment districts to finance the acquisition of the softball complex as well as acquisition of and improvements to Equinoa Park. Four resolutions made changes and modifications in the proceedings and amended/revised the Engineer's Reports for four assessment Districts: La Morada Assessment District via Resolution 09-0197, Morada Ranch Assessment District via Resolution 09-0198, Morada North Assessment District via Resolution 09-0199, and Mosher Assessment District via Resolution 09-0200. A fifth resolution approved a Joint Acquisition Agreement to Construct and/or Acquire Public Improvements with Morada Investments, LLC via Resolution 09-0201. A sixth resolution authorized the execution of an agreement with Morada Investments LLC for operation and maintenance of the Arnaiz Staidum for a period of three years with two additional one year terms via resolution 09-0202.
Located at Morada Lane and Holman Road, the Arnaiz Park Softball Complex is approximately 9.51 acres and contains four lighted fields, stadium seating (capacity of 1,200), a concessions building, bathrooms, announcer's booth, electronic scoreboards, an equipment garage, and ample parking. The City purchased the facility and contracted with Morada Investments LLC for operation. Morada Investments, LLC then contracted with John Furhman for the operations. The current agreement was assigned by Morada Investments, LLC to the City to be a direct agreement with John Furhman who operated the facility on behalf of Morada Investments, LLC. This Agreement requires the operator to pay all expenses related to maintenance and operation of the facility. In exchange for exclusive operating rights, the City receives $750 per tournament. With interest in both recreational and competitive softball continuing to grow, Stockton has been the location for numerous state and local tournaments. The City of Stockton has an obligation to provide parks and open space for use by the community. This recreational facility continues to address the growing softball needs in Stockton. In addition to the recreational value, activity at the Arnaiz Softball Complex benefits the local economy. A regional or state softball tournament can provide an economic impact of $50,000 per event.
Present Situation
Multi-year staffing reductions in both City Facility Maintenance and Recreation Departments would make it challenging for the City of Stockton to take over the facility maintenance, repair, and operations. The City does not presently possess necessary expertise, personnel and equipment to operate, maintain the softball complex. An RFP will allow staff to find an operator who is a well-qualified facility manager experienced with high-demand softball complexes.
Scope of Work Requirements
The City of Stockton would like to solicit proposals for a full-service facility management agreement from operators with a proven history of facility operation as well as positive relationships within the local, regional, state, and national softball communities. The City's intent is that Arnaiz Softball Complex be used to its full capacity to serve the community for recreational and competitive youth and young adult softball training, games and tournaments thereby enhancing the use and enjoyment of the facility. It is expected that the operator should be responsible for the management, operation, and maintenance of the Arnaiz Softball Complex, including, but not limited to, comprehensive scheduling (training, games, and tournaments), marketing, concession sales, and maintenance (field, grand stand structure, pedestrian areas, and ticket booth). The selected operator will be responsible for all expenses to operate Arnaiz Softball Complex while providing the City with a monthly payment based on a percentage of gross revenue with an expected minimum guarantee.
Selection Timetable
Advertisement: March 2014
Proposal Opening: May 2014
Recommendation to Council: June 2014
Findings
In order for the City to authorize the issuance of this RFP as an exception to the competitive bidding process, in accordance with Section 3.68.070 of the Stockton Municipal Code, the City must adopt findings to justify this exception. The findings are as follows:
1. A strict cost-competitive basis for the selection of a professional may lower the quality and thoroughness of the services to be provided.
2. The RFP process will provide a robust, fair and through process for solicitation of proposals from reputable operators capable of performing services contemplated by the City. The RFP process should identify how prospective operators have the necessary expertise to run the facility in a professional and cost effective manner in keeping with best practices in the industry.
3. Selection of a professional solely on the basis of initial cost can result in unnecessary additional long-term costs to the City for system operation and maintenance.
4. A competitive bidding process with detailed specifications to obtain a uniform price proposal would not afford the City the ability to obtain the quality and unique expertise required for a full range of skills required to make the facility successful; therefore, a uniform price proposal would not be in the best interest of the City.
5. The department has not operated this facility in the past. While facility operations could be assumed by the City Community Services Department, it would be more cost effective to find an experienced full-service facility manager.
FINANCIAL SUMMARY
There is no significant financial impact to issue a Request for Proposal as the City reserves the right to not award. Sufficient funds are available in Recreation's Administration account 044-3611-590 to cover minor administrative costs involved in processing the Request for Proposal. Should an award be recommended, staff will present findings and budget to Council in a separate agenda item.