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15 <br />Attachment B <br />the potential costs and revenues or benefits that may be associated with entering <br />into such an Agreement. <br />With the County no longer running a Little League baseball or softball program <br />(which operated from 2005-2010), staff certainly shares the interest in making <br />fields available for use by community groups and the many societal benefits that <br />children gain from participating in team sports. Having ball fields not presently in <br />use be availablefor the activity for which they were designed is a net gain for the <br />entire community. <br />However, as we venture into potential partnerships of this nature, it is also <br />important to assess, as best we can prior to actual observation, the issues, costs <br />and benefits associated with such an arrangement. This memorandum attempts <br />to provide information that helps evaluate the pros and cons, both financial and <br />otherwise, of the proposed agreement – and identify issues for the future that <br />should be acknowledged. <br />Financial Costs and Benefits of Proposed Agreement <br />1. <br />The table at Attachment 1summarizes some key categories of revenue <br />(proposed new revenue and revenue foregone) and estimated costs to the <br />County (material, equipment, and staff) related to a more-extensive usage of the <br />facilities at Cedar Grove Park in question.Staff and HYAA representatives have <br />worked to explore cost-cutting measures and creative ways to address needs <br />associated with the planned usage, although more opportunities may certainly <br />exist. <br />2 <br />The proposed agreement would have HYAA pay an annual fee of $3,000for the <br />usages outlined aboveand spelled out in greater detail in the agreement. By way <br />of comparison, as shown in the table, this $3,000 license fee is relative to: <br />Approximately $49,613 in billable hours of usage at Cedar Grove Park <br />under the Orange County Fee Schedule (and Facilities Use Policy). This <br />does not include potential field lighting charges; or <br /> $350in actual revenuethat wasreceived during FY 2010-11 for use of the <br />3 <br />same fields and same hours as proposedin the agreement. <br />As shown in Attachment 1, the fees that would apply in the Orange County Fee <br />Schedule are 16 times that which is proposed as the lump-sum payment. One <br />additional component of this that may augment the $3,000 payment could be <br />possible concessions revenue(or the cumulative concessions vending fee <br />estimated at $1,755 that would apply under the Fee Schedule) to this figure to <br />get a more realistic estimate of the true revenues comparison. However, staff’s <br />analysis as shown on the following pages is that County-run concessions will <br />2 <br />HYAA continues to prefer their original offer of $1,000 payment for the year. <br />3 <br />It should be noted that while there was little revenue gained in FY 2010-11, there was also little <br />to no expense to prepare fields for play, greatly decreasing the associated costs. <br />2 <br /> <br />