APPROVAL OF THE FISCAL YEAR 2016-17 CAMELBACK RANCH - GLENDALE CAPITAL REPAIRS/REPLACEMENT PROGRAM; AUTHORIZATION FOR THE CITY MANAGER TO EXPEND FUNDS TO REIMBURSE CAMELBACK SPRING TRAINING, LLC, FOR CAPITAL REPAIRS MADE AT CAMELBACK RANCH - GLENDALE IN FISCAL YEAR 2016-17
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to approve the Fiscal Year (FY) 2016-17 Camelback Ranch - Glendale spring training facility Capital Repairs/ Replacement (CRR) Program, and to authorize the City Manager to expend funds to reimburse Camelback Spring Training, LLC, to pay for the identified capital repairs as they are completed throughout the fiscal year, in an amount not to exceed $836,752 in FY 2016-17. The attached CRR Program represents the best efforts of the City of Glendale and Camelback Spring Training, LLC, to predict the highest priority of items to be addressed in FY 2016-17. There may be on occasion unscheduled repairs that could arise that would take priority over, or change the priorities of the attached list.
Background
The City of Glendale is the owner of the Camelback Ranch - Glendale spring training facility located at 10710 West Camelback Road. This state-of-the-art baseball facility is the spring training home of the Los Angeles Dodgers and the Chicago White Sox. It is located on 125 acres at 111th Avenue west of the loop 101 between Camelback Road and Glendale Avenue. The facility opened in 2009.
The Management and Lease Agreement calls for the city to fund a CRR Program for the city-owned spring training facility. The costs for implementing a CRR Program is the responsibility of the City of Glendale and the costs for operating and basic maintenance of the facility is the responsibility of Camelback Spring Training, LLC.
Some of the projects in the FY 2016-17 CRR Program include: replacement of Chicago White Sox fields 1 & 2 for approximately $350,000; new netting and padding on 7 sets of minor field equipment for approximately $49,000; re-vinyl facility vehicular signage for approximately $30,000; and various HVAC repair and replacement for approximately $64,000.
Analysis
As with any type of facility, capital reinvestment is necessary to ensure the safety and enjoyment of those who use it. Additionally, as this facility is owned by the city, it is important to maintain the value of the asset with an appropriate CRR Program in place.
Under the terms of the agreement with Camelback Spring Training, LLC, the city is required to establish a Capital Repairs Account for the purpose of accumulating funds for the payment of the cost of Capital Repairs and Facility Upgrades. To this end, funds in the amount of $836,752 are programmed in FY 2016-17 to be used for payment to Camelback Spring training, LLC for approved capital repairs/ replacements.
In the past, payments for capital repairs to the facility were approved administratively by the City Manager. Starting last fiscal year, city staff developed an enhanced relationship with Camelback Spring Training, LLC in an effort to better oversee the facility and understand its needs to ensure this asset’s value in the future.
Staff worked with Camelback Spring Training, LLC to agree upon the necessity of the projects outlined in this fiscal year’s CRR Program and presents a total CRR Program for Council to approve before projects have been started and any funds are expended. Additionally, staff will ensure that all capital repairs/ replacement projects follow city purchasing guidelines.
Previous Related Council Action
On June 23, 2015, Council approved the FY 2015-16 CRR Program and authorized the Acting City Manager to expend funds to reimburse Camelback Spring Training, LLC for capital repairs made by the facility in an amount not to exceed $836,752.
On November 24, 2014, Council approved the FY 2014-15 CRR Program and authorized the City Manager to expend funds to reimburse Camelback Spring Training, LLC for capital repairs made to the facility in an amount not to exceed $836,752 in FY 2014-15.
On June 24, 2014, Council ratified the expenditure of funds to Camelback Spring Training; LLC in the amount of $400,253 for capital repairs completed in FY 2013-14 to the facility, and authorized the expenditure of funds in the amount of $26,014 to cover the remaining anticipated capital repairs for FY 2013-14.
On February 4, 2014, Council was updated on the life-cycle cost information for Camelback Ranch - Glendale spring training facility.
Community Benefit/Public Involvement
Proper maintenance and capital repairs to the Camelback Ranch - Glendale spring training facility are necessary for the safety and enjoyment of all individuals who work and attend events at this city-owned facility. In addition, it is necessary to invest capital dollars in this facility to maintain its value as an asset to the city.
Budget and Financial Impacts
Funding is available in the FY 2016-17 Capital Improvement Plan budget. Reimbursements to Camelback Spring Training, LLC for approved capital repairs/ replacements are not to exceed $836,752.
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Cost |
Fund-Department-Account |
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$836,752 |
2070-70801, Camelback Ranch Maintenance Reserve |
Capital Expense? Yes
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?