HomeMy WebLinkAboutAgenda - 10-25-2012 - 2
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ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date:October 25, 2012
Action Agenda
Item No.2
SUBJECT:
PotentialLicense Agreement –Hillsborough Youth Athletic Association
DEPARTMENT:PUBLIC HEARING: (Y/N)No
Environment, Agriculture,
Parks and Recreation
(DEAPR) & CountyAttorney
ATTACHMENT(S):INFORMATION CONTACTS:
A)Proposed Draft License AgreementDavid Stancil, 245-2510
B)Staff Memorandumand Table of John Roberts, 245-2318
Anticipated Costs/Benefits
C)Map of Cedar Grove Park
PURPOSE:
To review a proposed draft license agreement for the use of baseball/softball fields
at Cedar Grove Park and Fairview Park by the Hillsborough Youth Athletic Association (HYAA),
including a proposed revised agreement with changes proposed by staff and the County
Attorney.
BACKGROUND:
The HYAA is a non-profit entity that began in the late 1960’s and
incorporated in 1976 to “offer the youth in the Hillsborough community an opportunity to
participate in a fun and safe baseball/softball program that:
•encourages a healthy balance between the recreational and competitive aspects of the game,
•emphasizes the meritorious values of teamwork, sportsmanshipand respect for all others
•promotes building the confidence and self-esteem of each player through encouragement and
praise,
•strives to develop in its players an understanding of the game relative to the age of the child,
and
•develops skills in each player throughinstruction and practice.”
HYAA operated youth baseball and softball programs in spring 2012 with 550 baseball
participants and 130 softball participants. A fall instructional league is also held, with around
230 baseball and 100 softball participants.
Over the past year, County staff hasperiodically engaged in discussions with HYAA
representatives about the possibility of working together on youth baseball and softball
provision.In June 2011, a proposed Memorandum of Agreement that would have allowed
HYAA to take over the County’s sanctioned Little League program (a program operated by
Orange County from 2005-2010) was presented to the HYAA Board, but was not considered
desirable and not accepted.One of the likely drawbacks to this agreement was the inability of
staff to waive or lower fees for field usage that have long existed in the County’s fee schedule
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(and are now referenced in the Facilities Use Policy).While the door was left open to further
dialogue, no further meetings after a December 2011 status meeting were held. At that time,
HYAA indicated it wasprepared to move forward with itscurrent programs and current field
locations, which itdid for the 2012 seasons.
At the same time, with the County no longer operating a Little League baseball program, or girls
youth softball (a County Recreation program which dated back to the 1970’s), many of the
County’s ball fields at Cedar Grove Park, Efland-Cheeks Park and the new Fairview Park were
seeing little or irregular usage. During budget discussions in June 2012, the Board
contemplatedthis situation and instructed staff to re-open discussions with HYAA to see if an
arrangement to allow HYAA usage of these fields could be crafted – while making note of the
costs and benefits associated with such an arrangement.
Accordingly, in summer 2012, staff and HYAA representatives reconvened to discuss
possibilities. The recent License Agreement with the Eno River Farmers Market was noted as a
possible base template for an agreementfor field usage.Rather than County staff attempting
to guess at desiredarrangements and provisions for HYAA, the group agreed HYAA should
draft a possible license agreementfor review.
HYAAcreated a draft License Agreement, which was received and discussed inSeptember.
County staff and the County Attorney’s office provided feedback and proposed changes to
some sections of the draft, which were then shared with HYAA. County staff and HYAA
representatives then met on October 9 and created the attached draft License Agreement(with
some minor subsequent tweaks). The Agreement, among other items, provides for:
Lease of the three ball fields at Cedar Grove Park, and limited use of the one field at
Fairview Park, beginning in March 2013.
The three fields at Cedar Grove Park would be leased from a) March 1 – July 31, and b)
from September 1 – November 1,from 9am-4pm on Saturdays, and from 5:30pm-9pm
on Tuesday-Friday(and on Mondays prior to opening day for practices).
Thefield at Fairview Park would be usedon one Sunday between March and November
(to be identified) between 8am and 4pm for a free community outreach event for skill
clinics and baseball/softball skills competitions for youth.
At both sites, additional days and times could be reserved for clinics, rain make-ups, etc.,
on a “first-come, first-serve” basis, per prior agreement and approval.
Exceptions to this schedule would be conveyed to HYAA by the County at least 60 days
in advance, with an alternate facility provided bythe County.
The agreement may be temporarily suspended by the County in the event of a public
emergency in which the fieldsare needed, without penalty to the County or HYAA.
The County would agree not to schedule other events on ball fields at either site during
the leased times, and the County would make utilities (powerandwater) available.
HYAA does not plan to use field lights, but these would be billed at current rates if used.
HYAA would have access to restrooms and water fountains at the sites during the listed
times.
A storage shed would be placed at Cedar Grove by HYAAat a location to be determined,
which would be the property of HYAA and remain through the term of the Agreement.
The County mayoperate concessions, if deemed financially practical, and retain
revenues from concessions as a contribution toward field usage and other costs.
Alternatively, the County may make arrangement with a third-party to operate
concessions.
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The payment for this license is proposed to be $3,000 annuallythroughout the term of
the agreement, payable in advance. HYAA would not issue sublicenses for use of either
facility, and doing so would constitute a breach of contract.(Note: HYAA’s proposal was
for a payment of $1,000, and HYAA continuesto express preference for that amount).
The proposed Agreement is a one-year termbeginning March 1, 2013, and is renewable
by the County and HYAAfor a same or longer term.To help HYAA with certaintyabout
field availability, renewal discussions would begin in summer 2013. Either party may
terminate the Agreement at any time by written 60-days notice – except that termination
during a paid season would not take effect until the end of the contracted playing
season.
HYAAwouldclear the fields of trash and debris into a County-supplied solid waste
container,and would drag the fields after each use with HYAA equipment.
The County would provide ground maintenance, including restrooms, fencing, bases,
pitching mounds and rubbers, and dugouts. The proposal would have the County ensure
all fields were freshly dragged, lined and painted at least 30 minutes prior to each day’s
start time. HYAA would then be responsible for “between-game” and “end-of-day” field
preparation and maintenance. If rain or other circumstances preclude thisarrangement,
HYAA would line the field on these days.
County staff would retain final decisions on field usage in the event of rain or inclement
weather, but would do so in consultation with HYAA. Decisions about field cancellations
would be in a manner timely for both parties.
HYAA would obtain general liability insurance of $1,000,000 or moreand endorse the
County as an additional insured.
An HYAA representative shall meet annually with the County Manager or his/her
designee to review the Agreement, discuss compliance and special events or
modifications. Provisions are also made for any possible damage beyond normal “wear
and tear” to be evaluated at the end of the season.
While the proposed License Agreement represents a compromise worked on by HYAA and
County staff, there are still a number of issues that are important to acknowledge. These
issues, plus potential costs and benefits from the proposed Agreement, are addressed in the
attached staff memorandum. In summary, these issues are:
The proposed license fee payment of $3,000 compares to $49,613 if fees were charged
based on hours of usage, or $350 compared to actual hours of billed use in 2010-11.
Increased costs for materials, equipment and facility repairs and seasonal staff are
difficult to accurately assess, but staff estimatesindicate the County may incur new costs
of $13,782in conjunction with the agreement.
The County could operate concessions during HYAA usage, but staffing costs appear to
substantially exceedrevenues. Having a third-party non-profit provider mayresolve this
issue and provide the County with up to $1,755 in additional revenue to offset costs.
Some costs would be incurred in the current fiscal year and are unbudgeted.
The potential for precedents may exist via this agreement, and staff recommends an
evaluation mechanism or template be created before any new such agreements are
considered.
The usage by HYAA will result in ball fields being in use again for youth baseball and
softball, meeting a number of County goals for recreation and public health.
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HYAA representatives and County staff have worked on the attached agreement and are in
basic agreement on the provisions included, with the exception of the recommended dollar
amount.HYAA’s original proposal was for a payment of $1,000. HYAA hasexpressed interest
in keeping this amountand looking for other ways to address costs.
FINANCIAL IMPACT:
The proposed agreement includesan annual lump-sum payment of
$3,000 for the uses of the Cedar Grove and Fairview facilities as defined above. (Note: HYAA
continues to prefer their original $1,000 amount.) The County may also receive revenue from
concessions if a third-party vendor is used (up to $1,755), and HYAA would provide some field
maintenance in-kind. This comes to $4,755 in potential revenue forfield usage.
Based on the adopted fee schedule, the total billable cost of the proposed hours of usage would
be$49,613.It should, however, be noted that little regular use of these fields is currently being
made. Only $350 of billed reservations revenue was received in FY 2010-11,andas such the
proposed payment is not a loss of existing revenue, but an increase of $2,450. In comparison,
a recent rental of the Eurosport Soccer Center for a weekend tournament generated $7,000 in
concessions and usage fees. The proposed usage of the fields is, however, a significant
increase over traditional and budgeted levels of activity. This translates into increased costs for
equipment, materials, repairs, and staff resources(utilities are presumed atminimal cost).
These additional unbudgeted costs are estimated to be $13,782.
Finally, it is noteworthy to add that this would be the County’s first venture into long-term
reserved use of playing fields by one user, and as such afull evaluation of the costs and staff
resourcesrequired by such an arrangement may not be completely understooduntil one year of
actual expenses and revenues are seen (hence the proposed one-year term). An agreement of
this sort may set precedents for future expectations of field leasing beyond this proposed
Staff recommends that, prior to considering any further agreements of this
Agreement.
type, a full assessment be undertaken to create an evaluation mechanism or template to
assess possible agreements and their costs and benefits
.
RECOMMENDATION(S):
The Manager recommendsthat the Board review the proposed draft
License Agreement and the issues in the staff memorandum, and provide feedback and
direction to the Manager and staff. HYAA officials have indicated that a decision is needed by
November 12, 2012on their part in order to adequately plan for the spring 2013 season.
The Manager has the authority to execute this agreement if the Board sees the benefit of
establishing the relationship as outlined, pending final review and approval by staff and the
County Attorney.
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North Carolina ATTACHMENT ADRAFT
Orange County
LICENSE AGREEMENT
This License Agreement is made effective as of the 1stday of March 2013 by and
between the HILLSBOROUGH YOUTH ATHLETIC ASSOCIATION, INC. a North Carolina
non-profit corporation having an address of P.O. Box 577, Hillsborough, NC 27278 (“HYAA”)
and ORANGE COUNTY, NORTH CAROLINA, a body politic and corporate, a political
subdivision of the State of North Carolina, having an address of P.O. Box 8181, Hillsborough,
North Carolina 27278 (the “County”).
WITNESSETH:
WHEREAS, in 1976, HYAA was incorporated in the State of North Carolina as an
independent non-profit corporation by the filing of Articles of Incorporation with the North
Carolina Secretary of State; and
WHEREAS, HYAA is prepared for and desires to continue the administrative duties and
operational responsibilities for the HYAA youth baseball and softball programs; and
WHEREAS, the County desires HYAA to continue to provide the administrative duties
and operational responsibilities for the HYAA youth programs; and
WHEREAS, HYAA desires a license for the use of the County’s baseball and softball
facilities for HYAA’s youth programs subject to the terms of this License Agreement; and
WHEREAS, the County desires HYAA to utilize the county’s baseball and softball
facilities for HYAA’s youth programs subject to the terms of this License Agreement; and
WHEREAS, Cedar Grove Park is located at 5800 Hwy 86 N, Hillsborough, NC 27278;
and
WHEREAS,Fairview Parkislocated at 195 Torain Street, Hillsborough, NC 27278.
NOW, THEREFORE, for good and valuable consideration, and subject to the terms and
conditions hereinafter set forth, the County does hereby license unto HYAA and HYAA does
hereby accept as a provider of youth baseball and softball of the county the use of the County
baseball and softball facilitiesas described more fully herein.
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SECTION ONE
GRANT OF LICENSE: DESCRIPTION OF PREMISES AND HOURS OF OPERATION
County hereby grants to HYAA a license for usage of the three County-owned ballfields at
Cedar Grove Park and one ball field at Fairview Park as identified heretofore.
CEDAR GROVE PARK BALL FIELDS
HYAA shall be licensed hereby to use the three fields at Cedar Grove Park, as follows:
st
(A)Every Saturday throughout the term of this Agreement, between the 1of March
st
and the 31 of July during the hours of 9:00 AM - 4:00 PM (also known as Spring
stst
Season); and between the 1 of September through the 31 of October during the
hours of 9:00 AM - 4:00 PM(also known as Fall Season), with the exception of
one week in April and one week in September, when field aeration and top-
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dressing is performed, to be identified by the County prior to 1of March (Spring
st
Season) and 1of August (Fall Season)annually; and one Saturday in September
for an annual charity softball tournament to be determined by the County prior to
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August 1 annually.
(B)Every Tuesday, Wednesday, Thursday, and Friday throughout the term of this
stst
Agreement between the 1 of March and the 31of July during the hours of 5:30
stst
PM - 9:00 PM; and between the 1 of September throughthe 31 of October
during the hours of 5:30 – 9:00 PM; with the exception of one week in April and
one week in September, when field aeration and top-dressing is performed, to be
stst
identified by the County prior to 1 of March (Spring Season) and 1 of August
(Fall Season) annually; and one Friday in September for an annual charity softball
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tournament, to be determined by the County prior to August 1 annually. Due to
the unavailability of fields for the week of field aeration and top-dressing in April
and September, and the lack of availability on Mondays after “opening day” for
field maintenance and rest (as further described in subsection C below), the
County will make available fields at Efland-Cheeks Park at these timesfor HYAA
use, in lieu of the fields at Cedar Grove, if desired.
(C)Every Monday throughout the term of this Agreement between the 1st of March
st
and the “opening day” for HYAA Spring Season; and between the 1of
September and the “opening day’ for the Fall Season, for practice use only.
(D)Additional days and times throughout the calendar year to serve such specialty
clinics, tournaments, practices or rain make-ups conducted by HYAA on a “first
come,first serve” basis, as per Attachment A to this Agreement with thepre-
approval by the Director of the Orange County Department of Environment,
Agriculture, Parks and Recreation, or his/her designee. However, if a tournament
is scheduled, the fields to be used for the tournament shall remain unused for 48
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hours prior to the beginning of tournament play. This applies to all entities with
field reservations.
(E)Any exception to this schedule by the County shall be conveyed at least 60 days
in advance to HYAA and an alternate facility located and confirmed prior to
change in schedule. HYAA will commit to providing a schedule of planned hours
and days of actual usage as soon as schedules are finalized, but in no case less
than five (5) working days in advance of both the Spring and Fall Seasons as
defined in subsections Aand B above;
(F) In the event of a public emergency situation in which the Cedar Grove Parkball fields
are needed for County use during a time scheduled for HYAA Cedar Grove field use, the
County may temporarily suspend the terms of this License Agreement without penalty to
County or HYAA or such suspension being deemed a breach of this License Agreement.
F)County hereby agrees not to schedule other events on the Cedar Grove Park ballfields
during the times and dates set forth in sections 1(A-E) above.However, as a public park,
the park shall remain open for other use by residents during operating hours. This
Agreement does not connote exclusive rights for park usage beyond the facilities
specified herein. Due to limited parking at the site, HYAA shall encourage car-pooling.
County further agrees to make utilities (including power and water) available to HYAA
to be included in the license rate and to provide HYAA with access to restrooms and
water fountains at the Park during the times and days listed above. If field lighting is
needed, fees for lighting as applicable in the Orange County Fee Schedule shall apply in
addition to the License Fee.. Payment shall be made within 30 days of the invoice.
County reserves the right to temporarily restrictHYAA’saccess to the Park facilities
until payment is received. It is the intention of HYAA to not require the use of field
lights. However, during the Fall Season when games may conclude at dusk, this may
result in an inability to complete post-game field grooming work as described in Section
Six later in this Agreement
FAIRVIEW PARK BALL FIELD
HYAA shall be permitted hereby to use the ball field at Fairview Park as follows:
(G)One Sunday between March and November from 8:00 AM – 4:00 PM for a free
community outreach event holding skill clinics and baseball and softball skill
competitions for local youth;
(H)Additional days and times throughout the calendar year to serve such specialty clinics,
practices or rain make-ups conducted by HYAA on a “first come,first serve” basis, as
per Attachment A to this Agreement and with the pre-approval by the Director of the
Orange County Department of Environment, Agriculture, Parks and Recreation, or
his/her designee;
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(I)Any exception to this schedule by the County shall be conveyed at least 60 days in
advance to HYAA and an alternate facility located and confirmed prior to change in
schedule. HYAA will commit to providing a schedule of planned hours and days of
actual usage as soon as schedules are finalized, but in no case less than five (5) working
days in advance of both the Spring and Fall Seasons as defined in subsection A and/or B
above;
(J)In the event of a public emergency situation in which the Fairview Park fieldis needed
for County use during a time scheduled for the Fairview Park field use, the County may
temporarily suspend the terms of this License Agreement without penalty to County or
HYAA or such suspension being deemed a breach of this License Agreement.
(K)In the event of a public emergency situation in which the Fairview Park ball field is
needed for County use during a time scheduled for HYAA field use, the County may
temporarily suspend the terms of this License Agreement without penalty to County or
HYAA or such suspension being deemed a breach of this License Agreement.
(L) County hereby agrees not to schedule other events on the FairviewPark baseball/softball
fieldduring the times and dates set forth in sections 1(A-D) above. However, as a public
park, the park shall remain open for other use by residents during operating hours. This
Agreement does not connote exclusive rights for park usage beyond the facilities
specified herein. Due to limited parking at the site, HYAA shall encourage car-pooling.
County further agrees to make utilities (including water) available to HYAA to be
included in the license rate and to provide HYAA with access to restrooms and water
fountains during the times and days listed above. Power at Fairview Park is only
accessible at the picnic shelter and may only be available if the shelter is unused. If field
lighting is needed, fees for lighting as applicable in the Orange County Fee Schedule
shall apply in addition to the License Fee. Payment for any lighting shall be invoiced in
November of each year, and made within 30 days of the invoice. County reserves the
right to temporarily suspend HYAA access to the Park until payment is received.
SECTION TWO
LIMITATION TO DESCRIBED PURPOSE
HYAA shall utilize the Cedar Grove and Fairview Park ball fields for the limited purpose
of operating a youth baseball and softball program in Orange County. Any other use of the Cedar
Grove and Fairview Park ball fieldsmust comply with all applicable federal, state and local laws
and must be approved in writing by the County at least sixty (60) days prior to the intended use.
Any such other use shall constitute an expansion subject to the terms set out in this Section Two.
The County agrees to allow placement of a storage shed owned by HYAA at the Cedar
Grove Park, at a location designated by the County. This shed and the contents of the shed will
be the property of HYAA and removed at the time this Lease is no longer valid. Orange County
will sell concessions or cause concessions to be sold, at HYAA scheduled events, at its
discretion, with proceeds or vending fees from such concessions to help offset costs of field
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maintenance, increased materials, increased equipment use, breakage, and other costs that the
County will or mayincur as part of this Agreement.
SECTION THREE
ANNUAL PAYMENTS
HYAA shall pay County for this license at the rate of $3,000 annually for the use of the
three Cedar Grove Park ball fields, and the use of Fairview Park ball field, as outlined here and
through the term of this agreement. Fees are payable in advance. Such invoices shall be levied
90 days prior to commencement of period for which payment shall be madewithin thirty (30)
days of receipt.
SECTION FOUR
TERM & TERMINATION
THIS License Agreement shall be valid for aninitial period of one (1) year, beginning
March 1, 2013. This term is renewable by County and HYAA upon mutual assent for an
additional two (2) year term, up to two terms in advance prior to its natural expiration. County
agrees to begin the process of renegotiation or renewal of the term in the summer of 2013, such
that HYAA may know the intention of renewal by October 2013 for scheduling and planning
purposes. HYAA shall provide the County with ninety days (90) prior written notice of its
intention to renew the agreement. Previously-approved field usage reservations made by other
entities prior to October 12, 2012, that may be in conflict with planned usage set forth in this
Agreement, shall be honored and considered as exceptions to the Agreement.
Either party may terminate this License Agreement at any time, without regard to
payment periods by giving written notice to the other specifying the date of termination. County
and HYAA shall provide the other party a minimum of sixty (60) days prior written notice of its
intent to terminate this Agreementexcept during seasons for which HYAA already has
scheduled and paid for activity, in which case the period of notice shall be the conclusion of he
contracted playing season.
SECTION FIVE
HYAA CONTACT
HYAA hereby provides County with the contact information of two (2) individuals
whom County may contact during the hours in which HYAAis using the County ball fields to
address any and all immediate issues that may arise in regard to this License Agreement. Notice
by electronic mail shall be sufficient for purposes of this License Agreement. Any notice
required by this License may be made by delivering said notice to both individuals listed below
at either the physical or post office address provided or at the electronic mail address provided.
Notice shall not be deemed to be delivered unless receipt is acknowledged by responsible parties.
HYAA and County shall provide each other with an “emergency” contact phone number.
Name: ________________________ Name: _________________________
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Address: _______________________ Address: _______________________
______________________________ _______________________________
Phone: ________________________ Phone: _________________________
Email: ________________________ Email: _________________________
SECTION SIX
CONDITION OF CEDAR GROVE AND FAIRVIEW PARK FIELDS,WEATHER USAGE
DECISIONS& COMPENSATION FOR DAMAGE
HYAA shall clear the utilized baseball and softball fields and restrooms of all trash and
debris at the end of each day into a designated solid waste container at Cedar Grove Park,
supplied by the County. As there is no such container at Fairview Park, trash and debris will be
bagged by HYAA and disposed of by HYAA at receptacles which HYAA has access to.
HYAA agrees that it shall drag the utilized fields after each use (including the end of play
for the day) with HYAA equipment except as provided in Section One (F) where the onset of
dusk in Fall Season precludes this possibility. If either County or HYAA suffer occasional field
maintenance equipment breakdowns, each party shall reasonably attempt make its equipment
available to the other to assist in field preparation.
The County agrees to maintain the grounds including restrooms, fields, fencing, bases,
pitching mounds and rubbers and dugouts ensuring a safe environment.
The County agrees to have all required fields freshly dragged, lined and painted 30
minutes prior to each game start time. HYAA will be responsible for lining and dragging of
fields between games. HYAA will purchase and apply field preparation materials (such as “Plus-
5,” “Turface” or other like materials). In case of rain or other circumstances that impedes the
County’s ability to line the field,HYAA will take responsibility for lining the field on that day.
Example: If County staff lines the field at 4:30 PMand rain washes away the lines we realize
staff has gone home for the day. Therefore if the field dries out before a 6:00 PM game time, and
play is determined to be allowable, HYAA will then be responsible for the second lining.
Final decisions on the availability of fields described herein, during or subsequent to rain events
or adverse weather, will be made by the County Department of Environment, Agriculture, Parks
and Recreation – in consultation with HYAA. Such decisions, to minimize field damage and
maintain safe conditions, shall be made in consultation with a designated HYAA representative
via a “walk-through” of the fields to be used prior to scheduled play. Efforts will be made to
make such cancellation decisions in a timely manner which meets the interests of both parties.
In February of each year, HYAA and County representatives shall meet for an annual “work
day” at Cedar Grove Park to discuss the upcoming season, plan for service provision and go over
conditions of use as described herein or in other County policies or ordinances.
At the conclusion of each season, any damage beyond normal “wear and tear” standards to park
ball fields or facilities outlined in this Agreement used by HYAA, and which are directly
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attributable to HYAA activity, shall be reconciled. The County will notify HYAA of any such
damage, implement repairs, and bill HYAA for reimbursement. HYAA shall notify the County
of any disputed charges within 10 business days of receipt of invoice. Payment shall be made
within 30 days of receipt. It is expected that resolution to any damages will be addressed prior to
first reservation date of the next playing season. However, the County reserves the right to
temporarily restrict HYAA’s access to the fields until payment is received.
SECTION SEVEN
INSURANCE& GENERAL RELEASE
HYAA shall obtain, at its sole expense, general liability insurance insuring against any
and all losses at the Cedar Grove and Fairview Park ball fields as described herein during
HYAA’s use thereof. This policy shall provide coverage in the amount of no less than One
Million Dollars ($1,000,000). Insurance policies shall be (1) endorsed to show Orange County
as additional insured, as their interests may appear and (2) a copy provided to the County by
HYAA.
HYAA shall obtain from each of the participants or their legal guardians, a signed
general release of liability form discharging the County from any liability for personal injury or
property damage sustained during participation in the HYAA programs.
SECTION EIGHT
RELATIONSHIP OF PARTIES
It is expressly agreed and understood that this License Agreement shall not operate or be
construed to create the relationship of landlord and tenant between County and HYAA
whatsoever.
SECTION NINE
INDEMNIFICATION
HYAA agrees to defend, indemnify, and hold harmless the County, for all loss, liability,
claims or expense (including reasonable attorney’s fees) arising from bodily injury, including
death or property damage, to any person or persons caused in whole or in part by the negligence
or misconduct of HYAA, during HYAA licensed use, except to the extent same are caused by
the negligence or willful misconduct of the County.
It is the intent of this section to require HYAA to indemnify the County to the extent
permitted under North Carolina law.
SECTION TEN
MISCELLANEOUS
It is agreed that this Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of North Carolina.
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As noted in Section Two, the County will operate or cause to be operated concessions at
the Cedar Grove Park ball fieldsfor HYAA activities, at its discretion, to offset costs of field
maintenance, increased materials, increased equipment use, breakage, and other costs that the
County will incur as part of this Agreement.
HYAA shall not issue sublicenses for the use of the Cedar Grove or Fairview Park ball
fields described herein. Any sublicense shall be void and any attempt to issue a sublicense shall
constitute breach of this License Agreement.
An HYAA representative shall meet annually with the County Manager or County
Manager’s designee to review this License Agreement, discuss the Parties’ compliance
therewith, review proposed special HYAA events as described in Section One (C), and discuss
suggested modifications thereto. Any cases of sustained field damage from possible overuse will
also be evaluated at this meeting.
The failure of the County to require compliance by the HYAA with any provisions of this
License Agreement or the waiver by the County of any breach of this agreement shall not
constitute a waiver of any claim for damages by the County for any breach of this License
Agreement or a waiver of any other required compliance with the terms of this License
Agreement.
Any modification of this Agreement or additional obligation assumed by either party in
connection with this Agreement shall be binding only if evidenced in writing signed by each
party or an authorized representative of each party.
By signing below, the representative of HYAA warrants that he/she is authorized to
execute this Agreement on behalf of HYAA, and that he/she has obtained all authorizations,
approvals, and resolutions from HYAA that are necessary in order to duly bind HYAA to this
Agreement.
SIGNATURE PAGE TO FOLLOW
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In witness whereof, each party to this agreement has caused it to be executed on the date first
written above.
HILLSBOROUGH YOUTH ATHLETIC ASSOCIATION, INC.
By:
Name:
Title:
ORANGE COUNTY, NORTH CAROLINA
By:
Orange County
Approved as to technical content:
_______________________________
David Stancil, Department Director
This instrument has been pre-audited in the manner required by the Local Government Budget
and Fiscal Control Act:
_______________________________
Financial Services Director
Approved as to form and legal sufficiency:
_______________________________
Office of the County Attorney
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Attachment B
To:Frank Clifton, County Manager
From:David Stancil, Environment, Agriculture, Parks and Recreation Director
Date:October 25, 2012
Re:Proposed HYAA License Agreement
This summer, HYAA representatives and County staff began discussing the
natureof a possible agreement for the use of ball fields at County parks. In
September, HYAA submitted a proposed License Agreement based on the Eno
River Farmers Market agreement template. The County Attorney’s office and
staff from DEAPR have provided suggested changes, and on October 9
representatives from HYAA and the County came to basic understanding on a
proposed License Agreement (attached) dated 10-15-2012.
HYAA proposes to use all three ball fields at the County’s Cedar Grove Park from
March 1 to July31, and then again from September 1 to October 31, in the
following manner:
Tuesday through Friday from 5:30 pm to 9:00 pm;
Saturdays from 8:00 am to 4:00 pm; and
Mondays from 5:30 pm to 9:00 pm for practices, until the HYAA “opening
day” (approximately March 1 - early April, and September 1-15)
Other days and times to be scheduled for practices, makeup games,
tournaments, etc.
HYAA also proposes to use the ball field at Fairview Park for one Sunday
between March and November for skill clinics and community outreach, as well
1
as possible makeup days, clinics and practices as needed.
The nature and scope of this agreement is substantially larger than any previous
such agreement for use of recreation facilities at parks. As such, consistent with
the Board of Commissioners’ direction in June, we have attempted to address
1
For purposes of this memo, the analysis of revenues and costs are focused on the planned
regular usage at Cedar Grove Park, and does notattempt to account for the singular/occasional
use at Fairview, which should generate far less cost.
1
15
Attachment B
the potential costs and revenues or benefits that may be associated with entering
into such an Agreement.
With the County no longer running a Little League baseball or softball program
(which operated from 2005-2010), staff certainly shares the interest in making
fields available for use by community groups and the many societal benefits that
children gain from participating in team sports. Having ball fields not presently in
use be availablefor the activity for which they were designed is a net gain for the
entire community.
However, as we venture into potential partnerships of this nature, it is also
important to assess, as best we can prior to actual observation, the issues, costs
and benefits associated with such an arrangement. This memorandum attempts
to provide information that helps evaluate the pros and cons, both financial and
otherwise, of the proposed agreement – and identify issues for the future that
should be acknowledged.
Financial Costs and Benefits of Proposed Agreement
1.
The table at Attachment 1summarizes some key categories of revenue
(proposed new revenue and revenue foregone) and estimated costs to the
County (material, equipment, and staff) related to a more-extensive usage of the
facilities at Cedar Grove Park in question.Staff and HYAA representatives have
worked to explore cost-cutting measures and creative ways to address needs
associated with the planned usage, although more opportunities may certainly
exist.
2
The proposed agreement would have HYAA pay an annual fee of $3,000for the
usages outlined aboveand spelled out in greater detail in the agreement. By way
of comparison, as shown in the table, this $3,000 license fee is relative to:
Approximately $49,613 in billable hours of usage at Cedar Grove Park
under the Orange County Fee Schedule (and Facilities Use Policy). This
does not include potential field lighting charges; or
$350in actual revenuethat wasreceived during FY 2010-11 for use of the
3
same fields and same hours as proposedin the agreement.
As shown in Attachment 1, the fees that would apply in the Orange County Fee
Schedule are 16 times that which is proposed as the lump-sum payment. One
additional component of this that may augment the $3,000 payment could be
possible concessions revenue(or the cumulative concessions vending fee
estimated at $1,755 that would apply under the Fee Schedule) to this figure to
get a more realistic estimate of the true revenues comparison. However, staff’s
analysis as shown on the following pages is that County-run concessions will
2
HYAA continues to prefer their original offer of $1,000 payment for the year.
3
It should be noted that while there was little revenue gained in FY 2010-11, there was also little
to no expense to prepare fields for play, greatly decreasing the associated costs.
2
16
Attachment B
actually cost more in personnel and inventory costs than projected revenue
received.
However, the comparison to fee-based usage of all of the requested hours is
misleading, as it is basedon an assumption that fees for those hours of field
usage would in fact be received from other entities. This has not been the case
($350 total in FY 2010-11), and makes the comparison above a theoretical one.
It must be noted that in the last fiscal year, little usage of the fields in question
occurred(excluding a large September softball tournament), and thus the actual
revenue figure of $350 from FY 2010-11is the equivalent term of the agreement
(March-July, September-October) proposed by HYAA for that year, and is over
eighttimes less thanthe proposed $3,000 License Fee rate in the agreement.
Estimates of potential concessions revenueare difficult to project. Based on
figures from HYAA, we may expect to see gross concessionssales of up to
$4,200-$5,600per year. However, if the County operates concessions, there will
be significant associated costs for purchases of sale inventory and paid seasonal
staff,which will be required to undergo food safety training. Net proceeds of
concessions revenue for the County are usually about 30% of sales(after
subtracting purchases and personnel costs), making the net revenue expectation
based on HYAA estimates around $1,260 - $1,680per year.
However, staff notes that the potential for concessions revenue isa significant
unknown.The cost of paying staff to sell concessions may outweigh any
revenues gained.As such, having a third-party concessions vendor may be
desirable. There are indications that an area church, which sells concessions as
a side venture, may be willing to undertake concessions sales (and pay the
vending fees of up to $1,755 as per the Fee Schedule).
$4,755
The total of license agreement and potential concessions revenue is .
2.Estimated Costs Associated withthe License Agreement
Without actual observations or a frame of reference for assessing costs
associated withHYAA’s proposeduse of the Cedar Grove (and to a much-lesser
degree, Fairview) ballfields, an estimate of costs that will accrue to the County
as a result of the usage is difficult to project. The true measure and assessment
of these costs will not be known until after one (or more accurately, multiple)
years of observation and actual expenses are accounted for. For purposes of
agreement renewal, it is hoped that the spring season of 2013 will enable tweaks
to the agreement, if needed.
With that caveat, however, there are several areas where staff projectstypes of
costs that may result fromthe agreement. For example, there will certainly be
substantially-increased usage of thefields, restrooms, water fountains and
3
17
Attachment B
parking lots than that seen (and budgeted for) in previous years.HYAA’s
proposed usage will exceed any previous field and facility usage levels. For
example, when the County ran Little Leaguebaseball and softball in 2005-2010,
there were considerably fewer games being played, and only about half of those
games were at Cedar Grove.Therefore, itis difficult to place an exactnumber on
the impact of proposed increased usage. However, the items below make an
attempt to assess this:
1.There will be increased costs for materials, ranging from restroom and
cleaning supplies, to field lining materials, to increased purchases of items
such as temporary fencing, bases and paint. Staff’s best estimate of this
increase is that these portions of Cedar Grove Park operating costs may
4
increase from around $3,559to $10,141.
2.Potential increases in equipment and facility wear and tear and repairs.
The County’s “SandPro” field maintenance machine will be used an
estimated 50% more than it has been used the last two years. Mowers will
be used more frequently. How will this equate to frequency of repairs? Will
the restrooms (one male, one female) and the septic system handle the
increase in wastewater flow without issue?Once again, itis very difficult to
anticipate the potential costs associated with this factor, but staff would
suggest that the equipment repair portion of the Cedar Grove Park
operating costs may increase from ($1,200to $2,200) at a minimum.
3.Potential increases and/or changes in working hours for Parks staff. The
increase in facility usage mayrequire approximately 50% of the time of
oneadditional seasonal staff personat this facility to address the needs of
the license agreement. It may also require the existing Park Manager to
occasionally work, leave and return to work for evening games.If the
County operates concessions, additional seasonal employeeswould be
needed to work the concessions trailer, which if fully-open would be
around25 hours per week. (These seasonal employeeswould also work
at other locations.) The estimated cost associated for the additional Parks
seasonal position (projected at17.5hours per week, at the living wage of
$10.97/hourplus Social Security/FICA) is $6,200for the term of the
agreement.The estimated cost for concessions seasonal staffing(25
5
hours per week, same rate of pay) would be $8,561.As previously
noted, the costs of staffing concessions appears to be considerably more
than possible revenues, and another approach to concessions appears to
be desirable.
4.Potential damagesto the facility are an unknownfactor. While HYAA has
the best of intentions and will likely work hard to help care for the facilities,
the very volume of increased usecreates greaterpotential for damages,
whether to restrooms, water fountains or even field conditions.No cost
4
This does not include potential concessions materials and inventory.
5
If concessions sales do not cover the County’s costs, concessions could only be made available
on Saturdays, on a limited schedule, or not at all.
4
18
Attachment B
estimate is available for this potential area – staff proposes to evaluate
this over the 2013 season.
The total projected County cost above, based on the usage in the proposed
$13,782
agreement - and not including concessions revenue or costs - is .
Note – if the agreement is pursued for 2012, some of thesecosts will be incurred
in the current fiscal year (the term included four months of FY 11-12, from March
1– June 30). The costs identified above are not budgeted. If the agreement is
approved, staff proposes to closely track costs associated with the usage, and
would work with Financial Services to identify other funding to cover the new
costs through June 30, 2012.If concessions are provided by the County as
outlined above, a budget amendment to address revenues and expenditures for
concessions between March 1 and June 30 may be needed to cover the
remainder of the fiscal year.
If the agreement is approved, and costs are as projected, budget increases (or
augmentation of revenue) willbe needed for FY 2013-14 to address this usage.
3.Other Issues and Implications for the Future
The proposed use of the fields at Cedar Grove Park (and the clinic day at
Fairview Park) will create positive impacts by having the ball fields return to
playing use, for which they were intended and previously used (to a lesser
degree).
However, there are implications and other issues that should be acknowledged
and tracked during the first year of the proposed agreement in order to evaluate
impacts on the facilities in question – as well asimplications and impacts on
County policy and procedures going forward.
As previously noted, if the projected costs and revenues are accurate,
there will likely need to be a budget increase for Cedar Grove Park
operating and personnel budgets for FY 2013-14(or a revenue increase
from HYAA).
One challenge may be to ensure access for public use of the park (picnic
shelters, etc.) during the Agreement reservationperiod. The agreement
encourages HYAA users to carpool to save parking spaces.
Precedents – This agreement has the potential to be the harbinger of a
number of new similar requests for offline, non-reservation based facility
usage. Staff has not fully-examined the implications of these possibilities,
and recommends that, before considering any furthernew license
agreementsof this type, County staffdevelop an evaluation mechanism or
templateto determine whether such an agreement is beneficial, prudent
andcost-effective.
5
19
Attachment B
There are some discretionary components of the proposed agreement,
such as the process for making special reservations (as in Section One
(D), and a mutual understanding on when fieldconditions areplayable and
how cancellations are made, that will need to be addressed by staff and
HYAA. This could be done as a part of the completion of the agreement
before signature, after Board approval.
Staff will need to address a potential issue with scheduled Sunday adult
softball league play (fields were previously lined on Fridays for these
games, but now will need to be lined on Saturday afternoons).
Plans for changes and improvements at the Northern Human Services
Center will need to be factored into agreement renewal to ensure
construction and field usage can occur safely.
4.Conclusion
In conclusion, the proposed agreement would allow for fields at Cedar Grove
Park to be used again for youth baseball and softball and provide a public service
as noted above. Encouraging youth recreation and team play provides lifetime-
learning, teaches teamwork, and promotes a variety of recreation and public
health needs.
The proposed agreement would provide for these activities to happen at a
County park site. However, there are substantial costs associated with the
operation and maintenance of the fieldsand facilities, which would be increased
dramatically in some cases by entering into the agreement.
As noted above, staff does have a concern about thepotential for creating
precedents that may be inconsistent with the provisions or intentions of the
adopted Facility Use Policy and fee schedule. However, one component about
an agreement with HYAA is different from others that may come forward, and is
worthy of note. Orange County does not currently operate a youth baseball and
softball program. In this sense, an agreement with HYAA to use ball fields at
County parks fills a void in recreation programming, whereas other agreements
for different sports or activities may be in competition with County-run programs
orprograms at County-owned facilities (such as Sportsplex). This void was
created when the County ceased running Little League baseball in 2010.
It is not anticipated that the same type of license agreement approach would be
appropriate at County facilities that are constructed and used largely for
tournaments and significant-planned reservationusage, such as Eurosport
Soccer Center. In that case, the facility is equally a County “park” andasoccer
complex, and the new expanded reservation schedule seems to be providing
more field time (and reservations revenue to cover operating costs).
One approach to license agreements such as this onewould be to ensure that
the County is “made whole” after revenues and costs are assessed…that the
6
20
Attachment B
revenues and in-kind contributions are equivalent to the costs to the County for
usage, increased maintenance and operating costs.That said, there may be
cases where the Board wishes to consider whether a “subsidy” of a potential
non-profit provider is warranted, and that may change the balance and
complexity of the overall question.
Please let me know if I can provide any additional information.
Copies:Michael Talbert, Assistant County Manager
7
21
Attachment B
Attachment 1
Table of Projected Revenues
Category Projected Revenues
License Fee $3,000
Concessions Vendor Fee $1 ,755
In-Kind Services Field lining / dragging
Other ?
Total $4,755
Table of Projected Orange County Costs
Category Projected Costs
Increased Materials Purchases $6,582
Additional Equipment $1 ,000
Repair/Facility "Wear and Tear"
Increased Seasonal Staff Hours $6,200
(17.5 per week during term)
Other/ Damages ?Fuel for mowers?
Total $13,782
Concessions is shown as a potential third-party provider that would pay vebnding
fees. The vendor may chose not to staff all events —the amount shown for
revenue assume concessions to be sold on all days.
6 HYAA prefers a license fee of$1,000.
These would be in-kind services, but are not offsetting revenues for County costs shown in the
companion costs table.
8 This category includes, lime, toiletries and cleaning supplies, "Quick-Dry', paint, bases and a
new temporary fence for games for younger age groups.
8
Paved I Lighted I Measured
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Picnic Shelter wl (1/3 mile)
Rest Rooms _
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111 1
----- ---- '
- --- --- - -� --- ------ Cedar Grove Park
�, \ i ---- — -- Master Plan
Adopted 4/2005
Phase I Completed 4/2009
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