City Council

Agenda Request

Agenda Of:

05/06/08

Agenda Request No:

III G

Initiated By:

Andrew Temple,
Management Assistant II

Responsible Department:

Business & Intergovernmental Relations

Presented By:

Regina Morales

Director of Economic Development

Department Head:

Joe Esch,
Executive Director, Business & Intergov Relations

 

 

Additional Department. Head (s):

 

Subject / Proceeding:

Consideration of and action on authorizing execution of a contract with CSL International for services associated with determining the feasibility of Minor League Baseball in Sugar Land

Exhibits:

Contract with CSL International

Clearances

Approval

Legal:

Joe Morris,

city attorney

Executive Director:

Joe Esch, Business & Intergovernmental Relations

Purchasing:

Charles Eads,

Interim Purchasing Manager

Asst. City Manager:

n/a

Budget:

Bryan guinn,

budget manager

City Manager:

Allen Bogard/for AB

Budget

Expenditure Required:  $

88,000.00

Current Budget:  $

88,000.00

Additional Funding:  $

n/a

Recommended Action

Consideration of and action on  authorizing execution of a contract with CSL International for services associated with determining the feasibility of minor league baseball in Sugar Land.

Executive Summary

Following City Council approval of a conceptual site plan for the Cultural/Entertainment District on April 15, 2008, the City is proceeding with further refining the conceptual plan as well as the potential venues located within it.  To assist the City in this refining process the Sugar Land 4B Corporation approved a budget adjustment and funding resolution on April 24, 2008 to fund expenses associated with this next phase of work.  One line item within that budget adjustment was to pay for expenses associated with determining the feasibility of minor league baseball in Sugar Land.

 

In turn, the contract for consideration below will direct consultants from CSL International to assist the City in determining the feasibility of minor league baseball in Sugar Land and specifically a minor league ballpark located within the Cultural/Entertainment District.  CSL International is widely regarded as an expert in their field on these matters and has recently been integral in assisting other communities such as the County of Gwinnett, Georgia in studying these projects and their impacts upon local communities.

 

Through the contract, CSL International will follow a similar process to the recently completed feasibility analysis for the indoor concert venue project which they also conducted for the City.  Specifically CSL consultants will follow a four phased approach involving a:

 

1)      Sugar Land Market Analysis

2)      Financial Analysis

3)      Economic Impact Analysis

4)      Funding Analysis

 

Staff anticipates the study to take approximately 8-12 weeks from contract approval to completion.  This study will in turn provide critical data in helping the City Council to decide whether baseball is in the long-term interests of the citizenry and whether it will be a good fit for the community.    

 

Staff therefore recommends approval of the contract with CSL International in the amount of $88,000.00 to assist the City in determining the feasibility of minor league baseball in Sugar Land.  Funding is available upon approval of the budget allocation also included in this agenda.

Exhibits

 

 

 

                                                         CITY OF SUGAR LAND

                                               GENERAL SERVICES CONTRACT

                                                                Form Revised 10/16/06

 

This Contract (Contract) is made between the City of Sugar Land, (City), and Contractor.  The City and Contractor agree to the terms and conditions of this Contract, which consists of the following parts: 

 

I.    Summary of Contract Terms

II.  Signatures

III. Standard Contractual Provisions

IV. Special Terms and Conditions

V.  Contract Attachments

 

 

I. Summary of Contract Terms.      

 

Contractor:                                      Conventions, Sports & Leisure International   

Description of Services:                   Perform a Market and Financial Feasibility Study for Minor League Ballpark in Sugar Land, Texas

Maximum Contract Amount:              $88,000

Effective Date:                                 On the latest date of the dates executed by both parties

Termination Date:                             Upon completion of all obligations by both parties

 

 

II.  Signatures.  By signing below, the parties agree to the terms of this Contract:    

 

 

CITY OF SUGAR LAND*                                              CONTRACTOR:

 

 

________________________________                      __________________________________

Signed by:   Date: __________________                    Title:______________________________

____City Manager 

____Assistant City Manager                          Date:  _____________________________ 

____Director 

____ Program Manager

 

*Contract Signature Authority:           Program Manager -$2,999 or less

                                                      Director - $3,000 to $15,000

                                                      Executive Director/City Manager/Assistant City Managers - $15,000 to $25,000         

Attest:  City Secretary

 

 

_________________________________

 

Reviewed for Legal Compliance:

 

 

III.  Standard Contractual Provisions.

 

A.  Definitions.   

 

Contract means this Standard Services Contract.   

 

Services means the services for which the City solicited bids or received proposals as described in this Contract.

 

B.  Services and Payment.  Contractor will furnish Services to the City in accordance with the terms and conditions specified in this Contract.  Contractor will bill the City for the Services provided at intervals of at least 30 days, except for the final billing. The City shall pay Contractor for the Services in accordance with the terms of this Contract, but all payments to be made by the City to Contractor, including the time of payment and the payment of interest on overdue amounts, are subject to the applicable provisions of Chapter 2251 of the Government Code.

      

            C.  Termination Provisions. 

 

            (1) City Termination for Convenience.   Under this paragraph, the City may terminate this Contract during its term at any time for the City’s own convenience where the Contractor is not in default by giving written notice to Contractor.  If the City terminates this Contract under this paragraph, the City will pay the Contractor for all services rendered in accordance with this Contract to the date of termination.  

 

            (2) Termination for Default.  Either party to this Contract may terminate this Contract as provided in this paragraph if the other party fails to comply with its terms.  The party alleging the default will give the other party notice of the default in writing citing the terms of the Contract that have been breached and what action the defaulting party must take to cure the default.  If the party in default fails to cure the default as specified in the notice, the party giving the notice of default may terminate this Contract by written notice to the other party, specifying the date of termination.  Termination of this Contract under this paragraph does not affect the right of either party to seek remedies for breach of the Contract as allowed by law, including any damages or costs suffered by either party.      

 

(3) Multi-Year Contracts and Funding.  If this Contract extends beyond the City’s fiscal year in which it becomes effective or provides for the City to make any payment during any of the City’s fiscal years following the City’s fiscal year in which this Contract becomes effective and the City fails to appropriate funds to make any required Contract payment for that successive fiscal year and there are no funds from the City’s sale of debt instruments to make the required payment, then this Contract automatically terminates at the beginning of the first day of the City’s successive fiscal year of the Contract for which the City has not appropriated funds or otherwise provided for funds to make a required payment under the Contract.

 

D.  Liability and Indemnity.  Any provision of any attached contract document that limits the Contractor’s liability to the City or releases the Contractor from liability to the City for actual or compensatory damages, loss, or costs arising from the performance of this Contract or that provides for contractual indemnity by one party to the other party to this Contract is not applicable or effective under this Contract.  Except where an Additional Contract Document provided by the City provides otherwise, each party to this Contract is responsible for defending against and liable for paying any claim, suit, or judgment for damages, loss, or costs arising from that party's negligent acts or omissions in the performance of this Contract in accordance with applicable law. This provision does not affect the right of either party to this Contract who is sued by a third party for acts or omissions arising from this Contract to bring in the other party to this Contract as a third-party defendant as allowed by law.

 

E.  Assignment.  The Contractor shall not assign this Contract without the prior written consent of the City.

 

F.      Law Governing and Venue.  This Contract is governed by the law of the State of Texas and a lawsuit may only be prosecuted on this Contract in a court of competent jurisdiction located in or having jurisdiction in Fort Bend County, Texas. 

 

G.  Entire Contract.  This Contract represents the entire Contract between the City and the Contractor and supersedes all prior negotiations, representations, or contracts, either written or oral.  This Contract may be amended only by written instrument signed by both parties.

 

            H. Independent Contractor.  Contractor shall perform the work under this Contract as an independent contractor and not as an employee of the City.  The City has no right to supervise, direct, or control the Contractor or Contractor’s officers or employees in the means, methods, or details of the work to be performed by Contractor under this Contract.  The City and Contractor agree that the work performed under this Contract is not inherently dangerous, that Contractor will perform the work in a workmanlike manner, and that Contractor will take proper care and precautions to insure the safety of Contractor’s officers and employees.

 

I.  Dispute Resolution Procedures.  The Contractor and City desire an expeditious means to resolve any disputes that may arise between them regarding this Contract.  If either party disputes any matter relating to this Contract, the parties agree to try in good faith, before bringing any legal action, to settle the dispute by submitting the matter to mediation before a third party who will be selected by agreement of the parties. The parties will each pay one-half of the mediator’s fees.   

 

J.       Attorney’s Fees.  Should either party to this Contract bring suit against the other party for breach of contract or for any other cause relating to this Contract, neither party will seek or be entitled to an award of attorney’s fees or other costs relating to the suit.   

 

            K.  Severability.  If a court finds or rules that any part of this Contract is invalid or unlawful, the remainder of the Contract continues to be binding on the parties.   

 

            IV.  Special Terms or Conditions. None.

 

            V.  Additional Contract Documents.  The following specified documents attached to this Contract are part of this Contract, except as follows:  any provision contained in any of the Contractor’s Additional Contract Documents specified below that conflicts with a Contract provision not included in the Contractor’s Additional Contract Documents, does not apply to this Contract. 

 

            A.  Contractor’s Additional Contract Documents:

 

                  1.  Conventions, Sports & Leisure International Scope of Services (7 pages)

 

            B.  City’s Additional Contract Documents: None.

 

                   

 

 

 

 

 

 

 

 

 

 

 


March 31, 2008

 

Mr. Joe Esch

Executive Director

Business & Intergovernmental Relations

City of Sugar Land

2700 Town Center Blvd North

Sugar Land, TX 77479

 

 

Dear Mr. Esch,

 

This letter sets forth our understanding of the terms and objectives of our agreement with the City of Sugar Land (“Client”) to provide a market and financial feasibility study of a proposed minor league ballpark in Sugar Land, Texas.  This letter also provides the nature and limitations of the services we will provide, conditions of our work, and related fee arrangements.

 

SCOPE OF SERVICES

 

The primary focus of the analysis will be to assist in the evaluation of the potential development of a new minor league ballpark in the City of Sugar Land.  Our workplan consists of a project methodology divided into four phases, as follows:

 

        Phase I.                  Market Analysis

Phase II.                 Financial Analysis

Phase III.               Economic Impact Analysis

Phase IV.               Funding Analysis

 

The following pages provide a detailed description of our scope of services and the approach to be applied to the project tasks.

 

Phase I.  Market Analysis

 

The primary purpose of this phase is to evaluate the market viability of a potential new minor league ballpark and franchise in Sugar Land.  A market viability analysis for a project of this nature is typically comprised of four sub-tasks: an analysis of the local market, a minor league baseball analysis, a comparable/competitive facility analysis and a quantified market analysis.

 

The results of this phase will provide a comprehensive assessment of the market potential for a new minor league ballpark and franchise in Sugar Land broken down by specific user groups and types.  From this data, operating scenarios will be developed which will quantify the number and type of events, attendance levels, per capita spending, ticket prices, parking rates and other quantifiable measures.

 

Task 1.  Analysis of the Sugar Land Market Area

 

In this task, the size, demographics and growth potential of the Sugar Land area over the next several years would be assembled and compared to other markets hosting similar minor league ballparks.  The purpose of this exercise will be to determine the initial viability of the marketplace to support a new ballpark based on a comparison of several different market variables.  This analysis will identify historic, current and projected trends relative to the area such as income, employment, population, retail sales, effective buying power and the number of companies, professional firms and associations with the potential wherewithal to license premium seating and other upscale amenities.  The evaluation of these characteristics will serve as an important component for our analysis of market demand for potential events and premium seating since these indicators serve as a gauge for anticipated demand in the marketplace.

 

Task 2.  Minor League Baseball Analysis

 

This analysis will include an overview of minor league baseball leagues and franchises currently operating in North America, including independent and MLB-affiliated leagues.  This analysis will include information on the current structure of minor league baseball, as well as an analysis of industry trends in areas such as attendance, new ballpark construction and other such aspects of minor league baseball in recent years.  Based on our understanding of the project, an MLB-affiliated franchise could potentially play at the proposed ballpark, pending the approval of the Houston Astros franchise.  Alternatively, a franchise playing in one of several independent baseball leagues could potentially utilize the proposed ballpark.  As such, this task will include analyses of the history and trends of affiliated and independent leagues currently operating in the southern U.S.  We will analyze each potential league’s history and past performance from a standpoint of attendance, facility development and, to the extent possible, franchise and league financial performance.

 

Task 3.  Comparable and Competitive Facility Analysis

 

The primary purpose of this analysis is to assemble and analyze a variety of industry data relevant to this project including event levels, attendance, ticket prices, premium seating prices, and physical and operational characteristics from existing comparable minor league ballparks.  In addition, an analysis of facilities and franchises in the greater Houston region that may potentially compete with the new ballpark and its tenant baseball franchise will be conducted.  Information on planned or discussed facilities will also be considered.  The analysis of comparable facilities will include such items as:

 

·         seating capacity and configuration;

·         event levels by types of users;

·         premium seating/pricing inventory;

·         rental terms;

·         attendance levels;

·         ticket pricing;

·         per capita spending;

·         advertising/naming rights;

·         attendance by team/league;

·         private club and restaurants;

·         available parking;

·         financial operating results;

·         ownership and operational structure;

·         financing mechanisms and revenue sources; and,

·         other similar information.

 

Members of CSL have been involved in hundreds of similar projects over the past 15 years.  In performing the analyses required for these projects, we have developed an extensive database of facility development, financing, physical characteristics and operational characteristics for facilities throughout North America.  This data provides a basis from which to evaluate the amenities of a state-of-the-art minor league ballpark.  This analysis will also provide a benchmark as to the level of programmed space planned for this project compared to other industry competition.

 

Task 4.  Quantified Market Analysis

 

The primary purpose of this analysis is to further refine the work performed in the previous tasks and assess the market demand of the Sugar Land area for a minor league ballpark and franchise.  In performing an analysis of the potential event market for any project, we rely on industry research data, comparable facility data, and information provided from potential users of the type of facility under consideration.  As part of this task, we will contact potential users of the proposed ballpark to determine the types of non-tenant events that could be held at the facility.  Typically, we employ a survey procedure that focuses on potential facility users in order to quantify the likelihood of particular event segments using a new facility, and the specific amenities they may require.  This analysis will allow us to evaluate specifically how the potential event markets impact overall ballpark utilization and operational success.  The survey will include, but will not be limited to, organizations or individuals from the following groups:

 

·         national, regional and local event promoters

o        concerts

o        other sporting events

·         local collegiate athletics;

·         area high schools;

·         public and trade show organizers;

·         local religious and civic organizations; and,

·         other similar groups.

 

Data compiled will include the type of event, potential attendance, number of potential events, rental revenues, attendee spending and other pertinent quantifiable data.  This type of analysis provides quantified estimates by market segment of the number and characteristics of events that could utilize the ballpark on an annual basis.

 

By combining survey results with the analysis results generated in previous tasks, we will be able to identify the event markets that represent the primary sources of demand for a new minor league ballpark in Sugar Land.  This information will assist in assessing the overall event and attendance levels that could be achieved at a new ballpark. 

 

 

Phase II.  Financial Analysis

 

A critical factor in evaluating the overall viability of a project is the associated financial operating performance.  To address this issue, we will develop a computer-based model capable of extensive sensitivity analysis for the various facility scenarios, sizes and configurations as identified in the previous phase.  The model assumptions will be based on the estimated levels of event utilization and attendance derived from the market analysis for a new ballpark.  The model will present the estimated operating results representing the initial years of operations under each potential development and operating scenario.  Operating revenues and expenditures related to the proposed facility will be quantified by event type and source, including the following: