#04 Approve lease with Youth Baseball for batting cages (File Res. #2010-686)R LEISURE SERVICES DEPARTMENT MEMORANDUM
March 26, 2010
TO: City Council
FROM: Tom Malone, Management Analyst
SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to
Execute a Lease with Janesville Youth Baseball, Inc. for the
Operations of the Batting Cages (File Resolution #2010-686)
Summary
In 2008 the City of Janesville acquired the property located at 937 S. Jackson
Street. This property was previously the home of Swinger’s batting cages and
the acquisition included the batting facilities. Following the acquisition the City
entered into a one-year lease with Janesville Youth Baseball to operate the
batting cages. The purpose of this memo is to provide an update on the financial
impact of the lease with Janesville Youth Baseball for 2009 and review leasing
options for 2010.
Request
Janesville Youth Baseball, Inc. (JYB) requests the City renew their batting cage
lease for four months in 2010. After the lease period expires they would no
longer operate or be responsible for the area.
Recommendation
Staff recommends the City Council adopt File Resolution #2010-686 authorizing
the City Manager to execute an operating lease with Janesville Youth Baseball,
Inc. for the batting cage facility at 937 S. Jackson Street.
Suggested Motion
I move the Council approve File Resolution #2010-686 authorizing the City
Manager to execute an operating lease with Janesville Youth Baseball, Inc. for
the batting cage facility at 937 S. Jackson Street.
City Manager Recommendation
At the initial discussion, the City had the gross revenues that were projected, but
not the anticipated expenses. After reviewing the anticipated expenses along
with the fact of the initial partnership in building the batting cage, I encourage the
City Council to approve the proposed contract.
Background
In April 2008, the City purchased a batting cage facility located at 937 S. Jackson
Street (previously referred to as “Swinger’s”). The original plan for this acquisition
was to hold it as public open space or future redevelopment of the South
Jackson Street corridor. Following the acquisition, the City entered into a lease
agreement with Janesville Youth Baseball for the operation of the batting cage
facility. The purpose of this partnership was to provide an outlet for batting cage
services in the City, while allowing JYB to generate revenue for their Youth
Sports Complex expansion and the City to offset its annual expenses for the
property. The City’s expenses in 2009 were $4,526.69, while the revenue
received totaled $1,671.75; therefore, the City lost $2,854.94 through this lease
agreement, primarily due to facility and equipment repairs, supplies and utilities.
2010 Lease
JYB would like to renew their lease for a four month period in 2010, from April
thst
30 to August 31. When staff performed analysis to understand the fiscal
impact of the lease under this scenario, a loss of about $4,200 was calculated.
When staff shared concerns with JYB about executing a lease that is projecting a
loss at this amount, JYB became amenable to other options to make the terms
more favorable to the City’s general fund budget.
Contract Terms
The contract would be for a four month lease. The City would pay property
insurance, mow and pick up trash. The City would also be responsible for any
property repair. JYB would be required to have liability insurance and would need
to receive permission from staff prior to doing any improvements to the facility.
JYB would be responsible for utilities, supplies and equipment maintenance. JYB
would not pay any percentage of annual gross revenue to the City.
JYB expects to earn $14,000 in gross revenue in 2010. They project their
expenses to be $10,500 in 2010, taking into consideration JYB’s responsibilities
for utilities, supplies and equipment maintenance, as outlined in the attached
contract.
The City’s costs under this contract scenario would be for property insurance and
any required building repairs; however, these costs would be the responsibility of
the City whether we execute a lease with JYB or not.
Analysis
Leasing the batting cages to JYB has many positive attributes, including
providing batting cage services to the public that would not otherwise be
available; providing JYB an additional opportunity to earn revenue for their
expansion plans at the Youth Sports Complex, thus benefitting the community at
large; and furthering the City’s partnership with JYB.
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JYB has asked for a four month lease because the batting cages are typically
closed in late July or early August. After Little League has finished in mid July,
keeping the facility open is not profitable because the cost of labor exceeds
revenue. Additionally, 2010 is the last year that JYB will ask the City to lease the
cages and the facility will not be needed after August. As a result there should
be no additional utility expense because the power can be shut off after August.
JYB has stated that they would not be transferring the batting cage equipment to
the new Youth Sports Complex because of the age and amount of maintenance
required to upkeep the equipment. The burden of the equipment would then fall
to the City. Staff feels that the equipment is too old and would require too much
maintenance to operate.
Cc: Jay Winzenz, Administrative Services Director
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Resolution # 2010-686
A Resolution Authorizing the City Manager to Execute a Lease Extension Amendment
with Janesville Youth Baseball, Inc. to Operate the Batting Cages
at 937 S. Jackson Street Through August 31, 2010
WHEREAS, the City of Janesville owns the property at 937 S. Jackson Street, Janesville,
otherwise known as the Batting Cages, and
WHEREAS, the batting cage property includes an outdoor batting cage facility with lights
and six pitching stations, a building used for facility operations and a parking lot, and
WHEREAS, Janesville Youth Baseball, Inc., a non-profit organization, is interested in
executing a lease with the City of Janesville for the operations the batting cages as a public
recreational facility for the City of Janesville, and
WHEREAS, such lease contract, terms and conditions are permitted by law and the
Common Council is empowered to enter into such lease contract, pursuant to sections 66.0101,
62.11(5), 62.22, and 62.23(17) (b), and other pertinent Wisconsin Statutes, and
WHEREAS, it is in the best interest of and of benefit to the City of Janesville, the
community, and surrounding area to execute and enter into this lease extension amendment
with Janesville Youth Baseball, Inc. for the operations of the batting cages,
NOW THEREFORE BE IT RESOLVED by the Common Council of the City of Janesville
that it hereby authorizes the City Manager or his representative to execute and enter into, on
behalf of the City of Janesville, a lease extension amendment agreement to operate the batting
cages at 937 S. Jackson Street, Janesville, Wisconsin,
BE IT FURTHER RESOLVED by the Common Council that the City Manager or his
representative is hereby authorized to negotiate, renew, extend, and execute such documents,
papers, agreements, and forms, to take whatever other actions, and to make whatever minor
changes to the lease agreement and other related documents, papers, agreements, and forms
as the City Manager or his representative may, from time to time, find necessary, desirable
and/or beneficial to effectuate the lease agreement, the amendment, and/or the intent of this
resolution on the City’s behalf.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk City Attorney
Proposed by: Leisure Services
Prepared by: Management Assistant
LEASE AGREEMENT BETWEEN
THE CITY OF JANESVILLE AND
JANESVILLE YOUTH BASEBALL, INC.
AGREEMENTCITY OF JANESVILLE
This is made by and between the , a
Wisconsin Municipal Corporation, hereinafter referred to as the “City”, and
JANESVILLE YOUTH BASEBALL, INC
., a non-profit organization, hereinafter
referred to as “JYB”.
WHEREAS
, the City is the owner of the Batting Cages at 937 S. Jackson Street,
Janesville, Wisconsin, and
WHEREAS
, the City is interested in leasing the operations of the batting cages to a
qualified organization, and
WHEREAS
, JYB desires to lease this facility from the City, and
WHEREAS
, it is in the best interest of the City and its residents to promote the use of
the batting cages, and
WHEREAS
, the Janesville Common Council authorized the leasing of this facility to
JYB through their approval of File Resolution #201009-686593 on April 27, 200912,
2010,
NOW, THEREFORE
, in consideration of the fulfillment of the obligations of both
IT IS MUTUALLY AGREED
parties hereinafter set forth, as follows:
Premises
1.: The City exclusively leases to JYB for the term and conditions
hereinafter set forth, those premises situated in the City of Janesville, County of
Rock, State of Wisconsin, known as the Batting Cages and located at 937 S.
Jackson Street.
Term
2.: The term of this lease shall be for four (4) monthsone (1) year, or portion
thereof, beginning on April 298, 201009 and ending on AugustApril 310, 2010.
There shall be an option for the continued annual renewal of this lease for a
period of four (3) total years and concluding on April 30, 2012. At that time, the
parties may agree to update the lease if appropriate. The JYB shall notify the City
of their intent to lease or not lease the batting cages for the next year by January 1
of the following year.
Rent
3.: JYB will not be required to pay rent to the City due to their responsibilities
for utilities, supplies and equipment maintenance at the facility.
Use of the Facility
4.: JYB agrees to use the premises for baseball and softball
pitching and batting services and other activities as are normally carried out at
such recreational facilities. JYB and all employees, volunteers and agents will
comply with all codes, ordinances and policies of the City as they may affect the
use of public property.
Hours and Season of Operation
5.: JYB shall submit to the City for review their
recommended hours of operation. JYB has the right to modify the hours open
(days and time) at their discretion based on weather conditions, special
promotions or other seasonal variations. JYB may also determine, at their
discretion, the opening and closing date(s) of this facility.
Assignment and Subleasing
6.: JYB shall not mortgage, hypothecate, pledge or
otherwise encumber or assign the lease herein created; neither shall JYB sublet or
sublease the leased premises in whole or in part.
City Responsibilities
7.: the City shall throughout the term of this lease, at its own
expense, be responsible for the following activities and associated costs:
a)The City will pay for all grounds maintenance to include grass mowing,
trimming trees and bushes, weed spraying and snow removal.
b)The City will provide keys and padlocks to the building and batting cages.
c)Property insurance through the State Insurance Fund.
JYB Responsibilities
8.: JYB shall throughout the term of this lease, at its own
expense, be responsible for the following activities and associated costs:
a)JYB will pay for all utilities to include electrical, water, storm sewer,
sanitary sewer and fire protection (no telephone or cable TV).
b)JYB will pay for any supplies necessary to manage the batting cages, such
as token or balls.
c)Wages and fringe benefits for all JYB employees. JYB is an independent
contractor and none of its employees, members, officers, agents or
representatives shall be considered employees, agents or representatives of
the City. The City shall not be liable for and worker’s compensation,
insurance, payments or negligence on the part of JYB resulting from either
personal or property damage to any person.
d)Cost for liability and workers compensation insurance.
e)Wisconsin State sales tax on appropriate income categories.
f)Site signage for the batting cage business.
g)Maintain a reasonably clean and orderly site free of trash and litter. JYB
will advise the City in a timely fashion of any major mechanical problems
or equipment failures which need attention.
h)Have each participant sign a waiver of liability statement.
i)Shall collect all fees and in no way shall the City be responsible for
collecting any fees, or in any way be responsible for management or
oversight of the operation.
j)JYB shall employ competent and courteous employees and staff the
facility with the appropriate number of employees to maintain good
customer service.
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k)JYB may establish reasonable rules and procedures.
l)JYB is responsible for securing any an all licenses and permits which may
be required by any agency or governmental body.
m)Secure the building and property at the close of the business day.
Equipment Repairs and Maintenance
9.: JYB will be responsible for the day to
day operation, maintenance and repairs of premises to include the mechanical
pitching equipment. JYB will also be responsible for major mechanical failures
and breakdowns of the pitching equipment. Depending on the circumstances,
JYB reserves the right to not repair equipment which is at the end of its life
expectancy or if replacement parts are not available. The buildings and
equipment, and any and parts thereof, which are the property of the City shall
remain the property of the City and upon the expiration or termination of this
agreement, JYB shall surrender possession of said premises and equipment to the
City in as good or better condition as when first occupied by JYB, fair wear and
tear considered. Any additional equipment purchased by JYB, such as a pitching
machine, shall remain the property of JYB.
Insurance
10.: JYB shall obtain, at its own expense, comprehensive general liability
including bodily and property damage coverage of at least $2,000,000 each
person ; $2,000,000 each occurrence and $3,000,000 aggregate naming the City
and JYB as insured under JYB’s policy. Such insurance shall cover all activities
in and about the leased premises and shall indemnify and save harmless the City
from and against all losses, costs (including attorney fees), damages, expenses and
liability (including statutory liability), in connection with claims for damages as a
result of injury or death of any person or property damage to any property which
may arise from any act or neglect on or about the leased premises by JYB and all
other persons. JYB shall furnish the City with a certificate of insurance
evidencing the coverage as defined above. JYB shall insure all of their employees
in accordance with the law in the State of Wisconsin. JYB shall provide statutory
coverage for work related injuries and with limits of $1,000,000 each accident,
$1,000,000 disease policy limit, and $1,000,000 disease each employee. JYB
shall take such actions as necessary to protect the health, safety and welfare of the
public. JYB shall provide a thirty (30) day notice of cancellation for the City in
the event of cancellation, non-renewal or reduction of coverage.
Miscellaneous
11.:
a)JYB shall obtain the City’s permission before making any major
improvements or upgrades to the facility infrastructure.
b)JYB shall not unlawfully discriminate upon the basis of race, gender,
color, national origin, creed or disability against any person wishing to
utilize the premises for its stated purpose.
c)The City and any of its employees, officers, agents and representatives
may enter upon and remain upon the premises at any time and without
prior notice to JYB for authorized purposes and activities.
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d)This lease may be terminated, modified or amended at any time upon the
mutual agreement of the parties hereto. Termination of agreement shall
require 30 day advance notice.
e)The contract shall be subject to termination, non-renewal, and non-
extension at any time by the City without cause and without prior notice.
The City shall have the right, in its sole discretion, to forthwith terminate
and void this agreement and all rights of JYB hereunder, without notice,
with impunity, and without incurring any liability to JYB or any other
person.
f)This agreement shall be enforced, pursuant to the laws of the State of
Wisconsin.
g)JYB agrees to sign an inventory list of equipment and supplies to include
balls, bats, batting helmets, etc. and said list shall become a part of this
agreement.
Contact Parties
12.:
FOR THE CITY:
Rebecca Smith
Management Assistant
18 N. Jackson Street
P. O. Box 5005
Janesville, WI 53547-5005
608/755-3104
FOR THE JYB:
David Ellis, President
532 Somerset Drive
Janesville, WI 53546
608/754-2949
IN WITNESS WHEREOF
, the parties have executed this lease agreement, pursuant to
authority duly granted, on this ___ day of _______________, 201009.
City of Janesville Janesville Youth Baseball, Inc.
By: ____________________________ By: _______________________
Eric J. Levitt, City Manager Dave Ellis, President
By: ____________________________ By: _______________________
Jean A. Wulf, City Clerk-Treasurer Witness
Approved as to form. City Attorney
March 22, 2010March 26, 2009
_____________
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