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APPROVE MOTION AUTHORIZING AN AGREEMENT WITH CALIFORNIA GRAPETTES GIRLS FASTPITCH SOFTBALL FOR THE MANAGEMENT OPERATION, REPAIR, AND MAINTENANCE OF ARNAIZ SOFTBALL COMPLEX
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a motion approving findings that support an exception to the competitive bidding process and authorizing the City Manager to execute a five-year agreement with California Grapettes Girls Fastpitch Softball, also known as California Grapettes Girls Softball, Inc., for the operation and maintenance of Arnaiz Stadium. It is further recommended that this approval authorize the City Manager to take appropriate actions to carry out the purpose and intent of the motion.
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Summary
The Arnaiz Stadium is currently operated by John Fuhrman under a three-year agreement. The agreement concludes in August 2017, as recently amended, with a holdover agreement in place until a new operator is approved. Staff conducted a Request for Proposals (RFP) in April 2017 to select a new operator. The City received four responses. The current operator is retiring and did not apply for the RFP. After a review of qualifications, experience, financial status, and references, staff recommends that City Council approve a facilities management agreement with California Grapettes Girls Fastpitch Softball (Grapettes) for the operation of Arnaiz Stadium (Complex).
The attached agreement (Attachment A) will provide a tiered payment to the City for the use of the Complex. The Operator will pay eight hundred dollars ($800) per month for year one, nine hundred dollars ($900) per month for year two, and one thousand dollars ($1,000) per month for three, four, and five. The Operator will use all sources of revenue to pay operations, daily maintenance expenses, and repairs under $5,000.
DISCUSSION
Background
The Complex is a premier softball facility located at 3329 Morada Lane. The Complex comprises 9.51 improved and landscaped acres, which includes four lighted fields, stadium seating with a capacity of 1,200, a concession building, bathrooms, electronic scoreboards, a garage, and parking. The facility provides the community with recreational and competitive youth baseball and girls’ and women’s softball training, games, and tournaments. It is well maintained and well operated and attracts 32 tournaments annually, including the California Collegiate Athletic Association (CCAA) Division II Women’s Softball Tournament.
The Complex was built in 2000 by a private business. In 2009, the City purchased the Complex from Morada Investments with tax exempt bond financing funds. The purchase included an operating agreement to continue services to the community for one three-year term and two additional one-year options. John Fuhrman served as the facility manager during that time. In August 2012, Morada Investments asked City permission to assign the contract directly to John Fuhrman who continued to meet the terms and conditions of the Morada Investments Agreement until 2014 when the Agreement expired. In 2013, prior to the expiration of the agreement, the City Council approved an RFP, and John Fuhrman was chosen as the most qualified respondent. The current agreement expires in August 2017 with holdover options until a new operator is named.
Present Situation
The Community Services Department issued a RFP for the Operations and Maintenance of the Arnaiz Stadium on April 20, 2017. Staff directly contacted eight prospective vendors, advertised in The Record, and posted on the City’s Bid Flash website. The City received four (4) responses on May 18, 2017. All proposals were deemed eligible. John Fuhrman is retiring in 2017 and did not choose to respond to the RFP.
The RFP review committee, consisting of representatives from the Recreation Division of Community Services and Purchasing Division of Administrative Services, invited the four respondents to interview. Committee members then rated each proposal based on demonstrated relationships and experience with girls’ and women’s softball teams, experience promoting and directing tournaments, and experience with field maintenance and facility operations. The Grapettes provided the highest ranked RFP, a comprehensive plan, detailed budget, solid references, and a vision for the future. Staff recommends awarding an operations agreement to the Grapettes for Arnaiz Stadium.
As the selected operator, the Grapettes will provide a tiered payment to the City for the use of Arnaiz Stadium. They will pay eight hundred ($800) per month for year one, nine hundred ($900) per month for year two, and one thousand ($1,000) per month for years three, four, and five.
The Grapettes will pay 100% of daily operations and maintenance, utilities, water, field maintenance, facility repairs, and improvements with a value of $5,000 or less. The Facility is 17 years old, and the City should plan for needed capital improvements. The operator will develop 1, 5, and 10-year capital improvement needs, and the City will review and prioritize them during the Citywide Capital Improvement Plan Budget Process.
The agreement will be managed by the Community Services Department Recreation Division who will provide regular inspections with Public Works staff and coordinate quarterly meetings. The operator will provide monthly and annual reporting.
Findings
Stockton Municipal Code 3.68.070 provides that the City Council can authorize the award of a contract without the requirement of competitive bidding in those cases where facts exist that support and justify the exception to the competitive bidding process. Below are proposed findings for making such an exception:
1. Use of an RFP process is appropriate in this case because rather than basing selection on the lowest bidder, operator selection relies more on the evaluation of professional qualifications, experience operating and maintaining a facility, and performance in the girls’ softball industry. Use of this specialized criteria helps ensure the selection of an operator that will provide experienced care in a professional, responsive, and timely manner.
2. A successful operator must demonstrate the capacity to correctly maintain softball fields, have strong partnerships in the softball community, and operate the Stadium with best practices during tournaments and other softball activities. In addition, an operator must have the financial capacity to provide the equipment and supplies needed to start fall tournaments in September.
3. Selection of an operator based only on cost, rather than experience would lower the quality and integrity of services. Using an RFP ensures the City has a well maintained, well-operated facility for the next five years. The Grapettes were chosen based on this process and therefore are the most qualified operator
FINANCIAL SUMMARY
The total revenue is estimated to be $9,600 to $12,000 annually for five years, which is consistent with revenues the City has been receiving. The Operator will not share additional revenue sources of concessions, advertising, practice fees, etc. The City will be responsible for paying major capital repairs over $5,000. The Operator will pay 100% of daily operations and maintenance, utilities and water, as well as maintenance and equipment charges with a value of $5,000 or less. Revenue will be deposited in facility and maintenance account (643-0501).
Attachment A - Arnaiz Facility Management Agreement