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HomeMy WebLinkAboutItem 21 - Cabrillo Tennis CenterParks, Recreation, and Community Services www.santa-ana.org/parks Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report January 16, 2024 TOPIC: Cabrillo Tennis Center AGENDA TITLE Second Amendment to the Agreement with Matchpoint Tennis Academy LLC ("Matchpoint) for the Management, Operation, and Maintenance of the Cabrillo Tennis Center RECOMMENDED ACTION Authorize the City Manager to execute the second amendment to the agreement with Matchpoint Tennis Academy LLC to adjust the terms and conditions of Section 4 in the agreement and reduce the term from 15 years to 10 years with an expiration date of December 31, 2029 with the option for a one 5-year extension (Agreement No. A-2024- XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION On December 17, 2019, the City Council approved a license agreement with Matchpoint Academy LLC for the operation and maintenance of the Cabrillo Tennis Center for a 15- year term from January 1, 2020 to December 31, 2034. As part of the agreement, Matchpoint agreed to begin Cabrillo Tennis Center facility improvements including the installation of two (2) clay tennis courts; the installation of one (1) center tennis court; the installation of a fence, in accordance to Park Maintenance Division standards, around the entire facility; all lighting at the facility to be retrofitted to LED lighting; and replace two (2) air conditioning units. All facility improvements were scheduled to be completed by December 31, 2023. As a result of the COVID-19 pandemic, engineering and construction progress was delayed for the installation of the clay tennis courts, the installation of the center tennis court, and the installation of the fence around the facility. An amendment was approved to extend the deadline for Matchpoint to complete the installation of two (2) clay tennis courts at the Facility for six (6) months until June 30, 2021. Cabrillo Tennis Center January 16, 2024 Page 2 However, due to longer than anticipated construction delays resulting from the COVID- 19 pandemic, staff is requesting additional time for the facility improvements. With that consideration and in order to avoid future breach of contract scenario, the Parks, Recreation and Community Services Agency (PRCSA) is recommending that 1) Delivery dates associated with Subsections 4.1, 4.2, and 4.3 of the original agreement be adjusted; and 2) the term of the agreement be reduced from fifteen (15) years to ten (10) years in order to ensure Matchpoint is accountable for the terms and conditions in the agreement. After several meetings with Matchpoint representatives, the following amendments are being proposed to provide additional time for the facility improvements to be made. Facility Improvement Original Term & Condition Amended Term & Condition 4.1 Installation of two (2) clay Installed and operational no Installed and operational no tennis courts later than December 31, later than December 31, 2020 2025 4.2 Installation of one (1) Installed and operational no Installed and operational no center tennis Court later than December 31,2023 later than December 31, 2026 4.3 Fencing to be installed Fence to be completed no Fence to be completed no around the entire facility later than December 31, later than December 31, 2023 2027 The City recognizes under Section 4.0 Improvements to the Facilities that Subsections 4.4 and 4.5 have been completed and have met the terms and conditions of the original agreement. Both the City and Matchpoint agree that all other terms and conditions agreed to in the original agreement will remain unchanged. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Agreement Amendment Submitted By: Hawk Scott, Executive Dir. of Parks, Recreation and Community Services Approved By: Tom Hatch, Interim City Manager SECOND AMENDMENT TO AGREEMENT FOR THE MANAGEMENT, OPERATION, AND MAINTENANCE OF THE CABRILLO TENNIS CENTER THIS SECOND AMENDMENT to the above -referenced agreement is entered into on January 16, 2024. by and between Matchpoint Tennis Academy LLC, a Califomia limited liability company ("Matchpoint") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On December 17, 2019, City and Matchpoint entered into Agreement (A-2019-241) for the management, operation, and maintenance of the Cabrillo Tennis Center ("Facility") located at 800 N. Cabrillo Park Drive, Santa Ana, California ("Agreement"). B. On April 1, 2020, City and Matchpoint executed a First Amendment (A-2020-060) to the Agreement to allow for additional time to complete installation of two (2) clay tennis courts at the Facility because of the closure of the Facility due to the COVID-19 pandemic ("First Amendment"). C. The Agreement remains in effect through December 31, 2034. D. Pursuant to the terms of the Agreement and First Amendment, Matchpoint is required to make certain improvements to the Facility, including the installation of two (2) clay tennis courts at the Facility no later than June 30, 2021, one (1) center tennis court at the Facility no later than December 31, 2023, and fencing to be installed around the entire Facility no later than December 31, 2023. E. As a result of the global Coronavirus (COVID-19) pandemic, engineering and construction progress was delayed for the installation of the clay tennis courts, the installation of the center tennis court, and the installation of the fence around the Facility. F. The parties now wish to amend the Agreement to reduce the term of the Agreement and adjust the delivery dates associated with the installation of the clay tennis courts, center tennis court, and the fence around the Facility. The Parties therefore agree: 1. Section 2.0, TERM OF AGREEMENT, is hereby amended to reduce the term of this Agreement to ten (10) years from the commencement date of January 1, 2020 and shall expire on December 31, 2029, with the option for one (1) five (S) year extension exercisable by a writing by the City Manager and City Attorney, unless terminated earlier in conformance with Sections 9 and 10 of the Agreement. 2. Section 4.0, IMPROVEMENTS TO THE FACILITIES, subsections 4.1, 4.2, and 4.3 are hereby amended to read as follows: Page 1 of 2 Section 4.1 Operator shall, in connection with its maintenance responsibilities, cause two (2) clay tennis courts to be installed at the Facilities in a location determined by the City. The two (2) clay tennis courts shall be completed and operational no later than December 31, 2025. All costs association with construction of the two (2) clay tennis courts shall be paid by Operator. Section 4.2 Operator shall, in connection with its maintenance responsibilities cause one (I ) center tennis court to be installed at the Facilities in a location determined by the City. The one (1) center tennis court shall be completed and operational no later than December 31, 2026. All costs associated with construction of the one (I ) center tennis court shall be paid by Operator. Section 4.3 Operator shall, in connection with its maintenance responsibilities cause a fence to be installed around the entire Facilities in a location determined by the City. City will have final approval of the location, material and design of the fence. The fence will be completed no later than December 31, 2027. 3. Except as modified by this Second Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first written above. ATTEST Jennifer L. Hall City Clerk APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney By: --Brandon Salvatierra Deputy City Attorney RECOMMENDED FOR APPROVAL Hawk Scott Executive Director Parks, Recreation, and Community Services Agency CITY OF SANTA ANA Thomas R. Hatch Interim City Manager MATCHPOINT TENNIS ACADEMY, LC� , Name: C(S De v� r4VLt t Title: tie. j-6-Yl rilcx; <CtV r Page 2 of 2