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APPROVE AGREEMENT WITH HAGGERTY CONSTRUCTION, INC TO COMPLETE MLB-REQUIRED RENOVATIONS AT BANNER ISLAND BALLPARK
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve Notice of Exemption No. NOE21-24 under the California Environmental Quality Act (CEQA) for the Renovation of the Ballpark System at Banner Island Ballpark, Project No. EV23607 (Exhibit 1).
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
3. Authorize a budget amendment to appropriate $1,500,000 from the Venues Fund balance to CIP Project No EV23607 for the Banner Island Ballpark Renovation Project.
4. Authorize a budget amendment to transfer and appropriate $2,500,000 from the General Fund balance to CIP Project EV23607.
5. Reallocate and appropriate an additional $100,000 in American Rescue Plan Act (ARPA) funds from Business Attraction and Expansion ARPA Project #EARP207 to CIP Project No. EV2307 for the Banner Island Ballpark Renovation Project.
6. Approve a Standard Agreement in the amount of $6,100,000 to Haggerty Construction, INC. for the Banner Island Ballpark Renovation, Project No. EV23607 (Exhibit 2).
7. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The City is in a 25-year lease with the Stockton Ports Baseball Team (Attachment A) to provide a professional quality baseball facility for the team to play, practice and host home league games. The Ports are affiliated with MLNB+ as a development team playing in the Single A Division. At the onset of the current lease, Banner Island Ballpark (Ballpark) was constructed in 2005. Except for the scoreboard replacement, some technology upgrades, storm repairs and on-going maintenance, the Ballpark has not seen an upgrade since it was constructed. Major League Baseball (MLB) performed a facility audit of the Ballpark in 2022 and found multiple areas that did not meet their new standards. Most notably, the Ballpark did not meet standards in the following areas: lack of female umpire/staff locker room facilities, independent team commissary spaces, larger pitching/batting tunnel, field lighting, and other team space needs. To meet these new standards, the City contracted with Pendulum Studio, INC. (Pendulum) to create conceptual and construction plans.
Following two unsuccessful solicitations for a contractor to provide construction services to perform the needed renovation, the City reached an agreement with Haggerty Construction, INC. to complete the needed work. MLB has set a goal of having all minor-league ballparks meet the new standards by the beginning of the 2024-25 season. Stockton has been granted a one-year extension, but must show commitment and steady accomplishment to remain in good standing with MLB. With the approval of the construction agreement, phasing and construction will begin immediately. The Ballpark will be completed in phases to avoid interruption to the Ports’ regular season, which begins in late March. The expected timeline for full project completion will extend eighteen months.
DISCUSSION
Background
The City entered a 25-year lease with Seventh Inning Stretch, INC., owner of the Stockton Ports, to provide a baseball facility that meets the standards of MLB. Failure to meet MLB standards could cause the team to lose their accreditation with MLB, potentially jeopardizing the team and subjecting the City to financial repercussions. Once being informed of the MLB facility audit and areas of concern, the City has worked diligently with the Ports organization to assess the needs and forge a path to compliance. Pendulum, the architect hired to complete renovation plans, began with a conceptual design of the project that reuses existing space as possible to minimize the need for new build. The project has been scrutinized for the best, most financially responsible means of raising the Ballpark to MLB standards.
Present Situation
On March 28, 20204 the City issued PUR-24-028 for a contractor to provide comprehensive construction services for the renovation project. No bids responded by closing of PUR-24-028 on May 23, 2024. Contractors who had been present during the mandatory job walk were surveyed as to why they had not submitted a bid. The most common concern raised by the contractors was the City’s requirements set forth in the Community Workforce Training Agreement (CWTA). Concern for this project and the time constraints enforced by MLB led the City to discuss this project during CWTA renewal negotiations. On August 17, 2024, Council approved an amendment extending the CWTA for an additional five years and excluded the Banner Island Ballpark Project from the terms of the agreement if no bids were received after it was re-advertised and bid a second time. On September 12, 2024, PUR 25-004 was issued to again solicit bids for Banner Island Ballpark. Once again, no bids were received. Thus, the CWTA does not apply to this project.
The City reached out to Haggerty Construction, INC. (Haggerty), a local company located in Stockton that had experience completing repairs at the Ballpark after storm damage. The City negotiated a contract with Haggerty for the needed construction services. The cost submittal was scrutinized against the architect’s estimated project cost and adjustments were made to arrive at the current contract amount, which is within the anticipated project budget.
Pursuant to Stockton Municipal Code (SMC) 3.68.070 Council may approve findings which support an exception to the competitive bidding process. The findings are as follows:
1. The City does not have sufficient staff available to undertake this project.
2. The City negotiated a contract following two advertising of bids and no valid bids were received in accordance with SMC section 3.68.070.A.6.
The Local Employment Ordinance (Stockton Municipal Code, Section 3.68.095) and the Local Preference Ordinance (Stockton Municipal Code, Section 3.68.090) were both applied to the bidding process. However, neither were a factor in this selection, as no bids were received through two formal bid advertisements.
ENVIRONMENTAL CLEARANCE
The project conforms with the City’s General Plan, pursuant to California Government Code section 65402. The project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA), as specified under California Code of Regulations section 15301, since it involves an existing facility and the modifications to the existing facility will involve negligible or no expansion of use. The renovation of the Ballpark will continue to support one ballpark as was originally designed.
FINANCIAL SUMMARY
Funding to support the agreement with Haggerty will include: $2.0 million from ARPA funding allocated through Resolution No. 2024-10-30-0301, $2.5 million of General Fund balance, $1.5 million from Venues Fund balance, and an additional $100K of ARPA funding from ARPA Project #EARP207. Funds will be budgeted in the Banner Island Ballpark Renovation CIP Project #EV23607.
Attachment A - Ports License Agreement