Loading...
HomeMy WebLinkAbout12/17/1999 BAKERSFIELD NOTICE OF CANCELLATION OF THE SPECIAL MEETING OF THE COMMUNITY SERVICES COMMITTEE OF THE COUNCIL OF THE CITY OF BAKERSFIELD NOTICE IS HEREBY GIVEN that the special meeting of the Community Services Committee of the City Council scheduled for Friday, December 17, 1999, at 12:00 noon, in the City Manager's Conference Room, Second Floor of City Hall, Suite 201, 1501 Truxtun Avenue, Bakersfield, California, has been canceled. DATED: December 16, 1999 Alan Christensen, Assistant City Manager AC:jp BAKERSFIELD Jacquie Sullivan, Chair Patricia J. DeMond Randy Rowles Staff: Alan Christensen SPECIAL MEETING NOTICE COMMUNITY SERVICES COMMITTEE of the City Council - City of Bakersfield Friday, December 17, 1999 12:00 noon City Manager's Conference Room 1501 Truxtun Avenue, Suite 201 Bakersfield, CA AGENDA 1. ROLL CALL 2. ADOPT OCTOBER 22, 1999 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. STAFF UPDATE AND COMMITTEE DISCUSSION REGARDING ICE SKATING FACILITY PROPOSED BY MEMBERS OF THE COMMUNITY Special guest: Brad Becken, President, Ice Specialty Entertainment, Inc., which operates facilities in L,~os Angeles, San Diego, San Jose and around the Country. 5. ADJOURNMENT AC:jp DRAFT BAKERSFIELD ~'Y-~ _~~ Jacquie Sullivan, Chair Alan Tandy, City Manager Patricia J, DeMond Staff: Alan Christensen Randy Rowles AGENDA SUMMARY REPORT SPECIAL MEETING COMMUNITY SERVICES COMMITTEE Friday, October 22, 1999 12:00 noon City Manager's Conference Room 1. ROLL CALL Call to Order at 12:20 p.m. Present: Councilmembers Jacquie Sullivan, Chair; and Patricia J. DeMond Absent: Councilmember Randy Rowles 2. ADOPT JUNE 2, 1999 AGENDA SUMMARY REPORT Deferred to the next meeting. 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. STAFF UPDATE AND COMMITTEE DISCUSSION REGARDING ICE SKATING FACILITY PROPOSED BY MEMBERS OF THE COMMUNITY City Manager Alan Tandy stated that for some months, through the Economic-Community Development Department, staff has been contacting companies in the ice facility business to see if we could attract some interest here. After contacting several companies, two firms responded with interest and actually visited and looked at possible sites. It would be premature to give out names, but both have multiple facilities, are well known and established in the business. Staff has done research on other ice facilities in California and has found that in very large markets, such as Los Angeles, the facilities are typically privately born, financed and operated. In markets for our size, it is more customary for such facilities to be municipally owned with a leased-operation to a private sector operator or have a management agreement. The primary issue in getting a firm here would be that it is a developmental market that would need to tap market potential through promotion/advertising. Someone coming in to start a facility and build DRAFT COMMUNITY SERVICES COMMITTEE Friday, October 22, 1999 Page -2- it from the ground up would be 'looking at large advertising expenses, which would result in several years of less than full return on their investment. Therefore, such an operation would need incentives from the City in order to make it feasible. A single-sheet facility fully equipped without land is about $3.4 million and a double-sheet facility about $5.2 million. The firms that have come here have been given a list of the kinds of incentives that the City has. The availability of the incentives would be dependent on factors such as the specific nature of the proposal, the geographic location chosen for the site, and some incentives are available only with either pdvate or public ownership. It is most likely with our market conditions that we would be looking at an Enterprise Zone and/or redevelopment project area location because we have more tools in those areas to assist a facility to come into being. During our discussions with the firms, they indicated there might be some support from the business community. Once the companies have a chance to see how much revenue the business will generate, know their expenses, the size of the proposed facility (single or double sheet) and what they need to achieve for full financing, we can match it up with location possibilities and the kinds of incentives which might be available from the City or pdvate business community. In the next few weeks we should have a concept of their proposed projects and whether their interest seems to be firm. B. STAFF UPDATE AND COMMITTEE DISCUSSION REGARDING ENTRy SIGNS AND BEAUTIFICATION OF ENTRANCES TO THE CITY Alan Chdstensen stated entry signs have been suggested as a way to improve the image and the identification of Bakersfield. Staff has been working on different design concepts. There are two phases. The first phase is the large monument signs as you enter the City and the second phase will be smaller entry signs used at freeway entrances. The Committee reviewed the eight different potential designs for the first phase monument concept, possible locations, size, readability and cost. (The designs are on the City's Web Site.) The cost range is from $15,000 to $80,000 depending on the design chosen. At this time, there are no identified sources of funding. As progress is made toward the design, issues which will need to be resolved are how to pay for the signs and their upkeep/maintenance and securing private property for placement of the signs on Highway 99 and Interstate 5 as CalTrans right-of-way may be difficult' to obtain. Staff will continue to go out into .the community to generate interest and continue looking for funding sources, perhaps sponsors for the signs. The City Manager directed Don Hoggatt, Public Works Park and Landscape Designer, to focus on three or four of the designs that the Committee thought were best, while keeping their comments and suggestions in mind. Mayor Bob Pdce spoke regarding his-interest in getting these signs put up, at least two while he is still in office. He wants to re-activate his Economic Advisory Committee and get them involved and interested in working on this. The Mayor would like to take this task on and work in conjunction with the Committee. Committee Chair Sullivan stated she would welcome the Mayor's help with the project. DRAFT COMMUNITY SERVICES COMMITTEE Friday, October 22, 1999 Page -3- C. KEEP AMERICA BEAUTIFUL PRESENTATION BY THE RECREATION AND PARKS DEPARTMENT Recreation and Parks Director Stan. Ford stated that money was approved in the 1999-2000 Budget for "Keep America BeautifUl" and wanted to update the committee on the upcoming program. A video on the Keep America Beautiful program was shown to the Committee. The Keep Amedca Beautiful (KAB) System is a behavior-based approach to prevent littering and .improve waste handling practices, such as recycling, at the grassroots level through education and community-wide involvement. The KAB System requires a commitment from citizens, businesses, elected and public officials, and civic leaders to work together in identifying local concerns, getting the facts, involving the people, planning and focusing on results, and providing positive reinforcement. It provides long-term solutions, rather that focusing on one-time cleanup events. Parks Supervisor Terry McCormick, who will be the project coordinator, pointed out that the first step is the payment of a one-time entry fee, based on population, of $4,500 for certification in the program, and it requires a letter from the Mayor stating that Bakersfield wants to become a "Keep Amedca Beautiful" city. The fee includes training of the coordinator and a workshop for the people on the committee. There is an annual fee of $350. Along the way, after certification, volunteers from the community from business/industry, local government, education, neighborhoods, finance, civic, and public relations need to be chosen by the Council to make up a subcommittee. Mr. Ford stated that he already has a firm, Castle and Cooke, who is interested in participating in the program by planting flowers in 38 entry ways, such as by the signs as you enter Silver Creek. The Committee discussed the importance of beautification, recycling, bulky-items day, and litter control. The City Manager stated that since it's clear that this Committee, and Council as a whole, want to proceed with beautification of the City and the certification fee was approved in the 1999-00 Budget, staff will proceed with certification and then bring this back to the Committee for further direction. 5. ADJOURNMENT The meeting was adjourned at 1:20 p.m. Attendance: Mayor Bob Pdce, City Manager Alan Tandy; Assistant City Manager' Alan Christensen; City Attorney Bart Thiltgen; and Recreation and Parks Director Stan Ford; Parks Supervisor Terry McCormick; Park and Landscape Designer Don Hoggatt; Fire Chief Ron Fraze; Deputy Fire Chief Gary Hutton; Tammi Brown, reporter KUZZ; John Genter, ACN Communications; and Steve DeBranch, Castle and Cooke. cc: Honorable Mayor and City Council S:~C\CSCommittee\cs99oct22summa ry.wpd BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM December 13, 1999 TO: COMMUNITY SERVICES COMMITT, EE~' /I,./ FROM: ALAN TANDY, CITY MANAGER SUBJECT: ICE RINK Recently the City Council sent to the Community Services Committee a referral in response to citizen requests for an ice skating facility. A copy of the first report to the Committee, dated October 18, 1999, is enclosed. The purpose of this memo is to supplement that information. A total of four firms have now responded, in some form, to our calls. Three have visited Bakersfield. The fourth had visited several years ago when affiliated with another firm. At this point, the interest level would probably be characterized more accurately as "browsing", rather than final interest after serious study. None of these firms would locate here as a standard private sector investment. It simply does not "pencil out" in that way. At an absolute minimum, land would have to be provided, as well as other incentives to lower the construction cost. The measure of benefit to the City would have to include factors such as job creation, economic revitalization of a project area, and quality of life issues, in addition to the recreational aspect. Major issues could be characterized, as follows: 1) VVhere would the money come from to build it? There appear to be three theoretical models, as follows: At an absolute minimum, land would have to be provided, as well as other incentives to lower the computed cost. The measure of benefit to the City would have to include factors such as job creation, economic revitalization of a project area, and quality of life issues, in addition to the recreational aspect. a) Private sector loaned or generated. This appears unlikely, based on preliminary contacts. Some capital contribution may be obtained but not the majority of the funds. I b) Certificates of Participation (similar to bonds, they are called "COPS") that involves issuance by a non-profit corporation, in concert with the Redevelopment Agency or City. There appear to be models done for other Community Services Committee December 13, 1999 Page 2 recreational facilities, some of which do not fall back to the City for debt repayment. The debt is secured by the land and building, and the revenues the building produces. It would require subsidy to make this work - land and/or job creation incentives, for example, which would reduce the debt to an appropriate level to make the COPS saleable. This is preliminary; more information is needed to determine if the COPS can be sold, based on the specifics of our market. c) City debt - with repayment obligation. This is the easiest but, of course, carries the need to repay if, in fact, revenues are not adequate to cover debt service. In an ideal world, the management contract would repay the principal and interest. This version would also require a subsidy to reduce capital costs. It would carry a considerably lower interest rate than A or B above, perhaps as much as 1 to 1-1/2%. Summary of Issue Private capital is the most desirable and least likely. The not for profit COP issue without recourse to the City is the next most attractive i_f the economics work. Debt issuance with the obligation to repay would only be recommended if alternates A and B are not possible. 2) Where would the building be located? In theory, it could be located on any appropriate commercial zone, with the following limitations: a) It must make business sense to the operator. A location which made patrons feel uncomfortable dropping off children, for example, would not work, nor would a location that was hard to see or access. b) It should be central enough to serve the entire City population. c) We know that "making it happen" will require incentives. We have far more tools in redevelopment project areas and areas of block grant eligibility than we do elsewhere. d) A potential site between M and N, at California, has been identified. Other locations that fit the above can be considered, as well. If the City center project happens, that opens up new opportunities, such as land trades, to facilitate this site. The City Center would also make it a stronger project, as the visibility of the facility is enhanced by people passing it to go to the theatres, restaurants, etc. Ideas about alternate sites should be generated as quickly as possible, so that cost and acceptability to the interested firms can be studied. Community Services Committee December 13, 1999 Page 3 3) Single sheet of ice or add space for other ice / non-ice events? The difference is really between about a 30,000 square foot building used only for skating, or a 60,000 square foot building with one ice rink and a second area used for multiple purposes. Obviously, the smaller building is cheaper to build, estimated at $3.4 million (without land) and cheaper to operate. The larger building would be estimated in the $5.2 million range, and it requires more land, so that cost increases, as well.. The extra space could serve multiple needs. It could be used for roller hockey, indoor soccer, volleyball (we recently had a request from the volleyball club to rent the Civic), dance lessons, self defense lessons, after school drop in athletic program, etc. Just as the Condors need ice for practice, if we get arena football and/or indoor soccer, those teams will need a practice facility and a place to do youth lessons, etc. In short, it becomes something of a community center, based on modest charges for use. We do have demands for such space regularly, and the Recreation and Parks Department could certainly help schedule, book, and program it, if the facility is owned by a non profit or the City. Recreation and Parks is putting together some information from known needs for space and from a recent survey to show what demands are now not being met in the community. The economics would not improve if space is added, however. Even with charges for use, more subsidy would be needed for the larger multi purpose version, than the ice alone version. Its use would be much more diverse and broad based, however. Going with the larger version would help address Council goals to facilitate the development of cultural and recreational facilities and to promote programs for youth. It also, of course, makes it more costly and difficult to achieve. An alternate would be to start with the smaller structure and design it to be expandable at a future date. Guidance from the Committee on this issue would be valuable. 4) Even with all of the reasonable incentives the City can offer, private sector support and donations may be critical to getting this done. What next? The various firms have individualized approaches to studying the issue further. Some wanted names of people in town with interest in hockey, figure skating, etc. Others are reviewing demographic data. It is likely that we will end up with varying levels of interest at the end of that process, with one or more firms pulling out, even before specifics are discussed. There may also be differing philosophies on the smaller or larger model as different firms take different approaches. Please do not assume that this opportunity will be competitively sought after. More likely is the scenario that we will be fortunate to have an interested, qualified firm at the end of the process. Community Services Committee December 13, 1999 Page 4 In terms of steps, the following would be indicated: 1) Further financial/legal research is needed to determine which method can be used to generate the money to build. 2) We need to either focus on the larger or the smaller version in order to make discussions productive. 3) We need to keep exchanging concepts / proposals with the interested parties to more precisely define what level of incentives is necessary for the best deal, if a deal can be made. 4) If there are business or private sector donations or contributions out there, now is the time to come forward! 5) Staff will run some financial models and plans to help determine if the project is affordable. AT:rs Attachment cc: Honorable Mayor and City Council ~g ',-~. :2-87-1999 11:11AH FRO~ NATIONAL SPORTS SVCS.423 894 3704 P. 2 BRKERSFIELD CONDORS; I:)ROFE, , IDNRL HDCKEY Coasf LeQgue I er ield (enlmnial Gorden December 7, 1999 Mr. Alan Tandy City Manager City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Alan, The Bakersfield Condors certainly endorse the addition of a recreationa'l ice rink ~o the Bakersfield community. The Condors would be willing to offer the following assistance to a developer, ownership interest or facility management company - I. Purchase of ice time for practice when Centennial Garden is .not available. Based on previous usage, t~e Condors would rent approximately 80 - 90 hours of ice time in the new facility 2. Transference to the new facility of the righ~ to operate the Junior Condors Hockey League program. Presently, the JCHL has 88 members generating approximately $38,000.00 in gross revenues from participants. 3. Donation of 300 pairs 'i~f'rental skates purchased new in October 1999.' Total value at time of purchase ~exceeded $15,000. 4. Transference to the new facility a summer hockey school generating a minimum of 20 rental hours at the ice rink. 5. Discount admission to selected Condors games with coupon distributed at ice rink. 6. Distribution of coupons and promotional:materials to drive traffic into the ice rink at every Condor game. 7. Complimentary advertisement in the Condors yearbook. 8. Access to Condors databases (season ticket holders, youth fan club, etc.) for direc~ mail and telephone solicitation 9. Player appearances.and mascot appearances at the ice rink. 10. Additional cross marketing between 'the Condo~s and the venue es determined. P.O. Box 1806 Bakersfield, ~A 9330:3.1506 (805) ]24-PUCK (7825). t:Qx: (805) :]24-6929. ....................... voav. bakerffieidcondo,.com 12-07-1999 11=12AM FROM NATIONAL SPORTS SVCS 423 894 3704 The Condors look forward to working with the City of IBakersfield end any interested parties in an effort to make a recreational ice rink a reality. In addition to the above, the Condors would certainly make a financial contribution to the project in exchange for reduction in per game rental fee at Centennial Garden. Since~,,ly, ~ Davidson President cc: Jonathan Fleisig Matt Riley DEPARTMENT OF RECREATION AND PARKS DATE: December 9, 1999 TO: Alan Tandy, City Manager FROM: Stan Ford, Director of Recreation and Parks SUBJECT: Potential Demand/Use of Indoor Space I have reviewed the survey information that the department has collected in the past year, as well as other input we have received regarding demand for recreation facilities and programs. The department recently received a draft of our master plan. Although the highest demand identified in the plan is for aquatic facilities, there is a substantial need for indoor, multi-purpose space (i.e. community center). A major factor in determining this need is the fact that the city is substandard in it's provision of this type of space. This is based on established national standards for facilities. In analyzing the potential use of additional indoor space, should it become available, our data indicates high existing interest in indoor basketball (55.4% of the citizens) as well as a strong demand for additional indoor facilities such as gymnasiums (61.4%). Demand for new programs include: · Aerobics 53.&% · Arts and Crafts 64.3% · Basketball 59.0% · Cooking 56.2% · Dance 53.0% · Drawing and Painting 58.8% · Volleyball 54.8% There a much higher demand for city-wide events. Activities such as: · Arts and Crafts Fairs 82.3% · Car Shows 62.1% · Cooking Competitions 65.8% · Dances 67.8% · Exhibit/Product Fairs 69.0% · Holiday Events 80.3% · Pet Shows 70.8% Any of these activities would be well-suited for a large, multi-purpose facility. Availability of a facility to meet this need is limited in Bakersfield. There is a need, and the potential, for the department to offer any of these programs, if the facility was available. Some of these program demands could also be met through private-sector provision. All of the activities, especially the city-wide events, have good revenue potential. City-wide events would likely generate more revenue and require minimal modification to a large, common space. Whereas, accommodating activities such as basketball and aerobics would generate a smaller, more consistent revenue, but would require some space dedicated to each activity, as well as some equipment, setup, and storage. BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM October 18, 1999 TO: Community Services Commi~/~ee/r..- FROM: Alan Tandy, City Manager~ SUBJECT: Public Ice Rink Efforts to Date Contacts have been made with multiple firms in the business. Two have expressed enough interest to visit Bakersfield, explore potential sites, and discuss the possibility. Key Issues · If there were a clear profit to be made in our market size as a purely private business venture, Bakersfield would already have a facility. Most often, in our size market, rinks are thought of like parks, as a publically owned recreation / quality of life amenity. Lease back arrangements to private sector operators are common, which may (if prices are right), cover debt service, as well as operation and maintenance costs. · A ball park estimate of costs runs + $3.4 million for a single sheet to + $5.2 for a double sheet. Both figures are without land but do include equipment. · We can get interest and a quality operator, but it will require incentives and possible generation of the capital. · Private sector support / contributions / donations through the Bakersfield Foundation (501C3) would be enormously helpful. Staff will continue to work with potentially interested firms. The primary issue is developing a plan that is economically feasible with acceptable and affordable terms for all parties. AT:rs