Agenda - 10-25-2012 - 2 - Laserfiche WebLink

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4 HYAA representatives and County staff have worked on the attached agreement and are in basic agreement on the provisions included, with the exception of the recommended dollar amount.HYAA’s original proposal was for a payment of $1,000. HYAA hasexpressed interest in keeping this amountand looking for other ways to address costs. FINANCIAL IMPACT: The proposed agreement includesan annual lump-sum payment of $3,000 for the uses of the Cedar Grove and Fairview facilities as defined above. (Note: HYAA continues to prefer their original $1,000 amount.) The County may also receive revenue from concessions if a third-party vendor is used (up to $1,755), and HYAA would provide some field maintenance in-kind. This comes to $4,755 in potential revenue forfield usage. Based on the adopted fee schedule, the total billable cost of the proposed hours of usage would be$49,613.It should, however, be noted that little regular use of these fields is currently being made. Only $350 of billed reservations revenue was received in FY 2010-11,andas such the proposed payment is not a loss of existing revenue, but an increase of $2,450. In comparison, a recent rental of the Eurosport Soccer Center for a weekend tournament generated $7,000 in concessions and usage fees. The proposed usage of the fields is, however, a significant increase over traditional and budgeted levels of activity. This translates into increased costs for equipment, materials, repairs, and staff resources(utilities are presumed atminimal cost). These additional unbudgeted costs are estimated to be $13,782. Finally, it is noteworthy to add that this would be the County’s first venture into long-term reserved use of playing fields by one user, and as such afull evaluation of the costs and staff resourcesrequired by such an arrangement may not be completely understooduntil one year of actual expenses and revenues are seen (hence the proposed one-year term). An agreement of this sort may set precedents for future expectations of field leasing beyond this proposed Staff recommends that, prior to considering any further agreements of this Agreement. type, a full assessment be undertaken to create an evaluation mechanism or template to assess possible agreements and their costs and benefits . RECOMMENDATION(S): The Manager recommendsthat the Board review the proposed draft License Agreement and the issues in the staff memorandum, and provide feedback and direction to the Manager and staff. HYAA officials have indicated that a decision is needed by November 12, 2012on their part in order to adequately plan for the spring 2013 season. The Manager has the authority to execute this agreement if the Board sees the benefit of establishing the relationship as outlined, pending final review and approval by staff and the County Attorney.