Agenda Item 20: Lease Agreement with San Marcos Lions Club

[COSM_Admin]

Consider approval of Resolution 2021-65R, approving the First Amended and Restated Lease Agreement between the City of San Marcos and the San Marcos Lions Club providing for a five year lease of a portion of the City Recreation Building located in City Park for an annual rent of $11,900.00 with an option to renew for up to two additional five year terms upon mutual agreement; authorizing the City Manager or his designee to execute the lease agreement on behalf of the City; and declaring an effective date.

 

[JHughson]

In 2.06 of the lease (new terms) we have:
B. This donation will be provided in the form of a Lions Club Grant to the San Marcos Parks and Recreation Department for the purposes of funding improvements within the river parks.
Please define what would be considered "improvements" in the river parks.
I suggest listing what we consider the "river parks" by name.
Could it be more trash cans?
Better trash cans?
More playground equipment?

3.01 states "Recreation Center building" - is this the formal name of THAT side of the building other-wise known as The City Rec Hall? Some people get confused with the term "Recreation Center" and our Activity Center.

 

[MBaker]

Why did staff not gather the FOIA-able information regarding donations to the City, County, School District?

What members of the Parks Department or high level City Staff are members of the Lions Club?

According to the Memo it seems they could raise tube rental rates again and likely make a similar income AND be healthier for our river, right?

Also, the memo points out that MOST of their businesses (92%) are not local residents and yet didn't the LC's previous memo indicate that 'most' of their business was locals. Were they intentionally misleading us or what data were they using to draw that conclusion? If the increased $2 fee is not largely impacting locals and only those that come to visit, wouldn't that still have a net positive impact on their added economic value to the City?

If I had the numbers correct from staff in the last meeting, there were three different fund amounts indicated that subsidize the cleaning of trash in our parks related to their business model (15k, 33k, 97k = $145,000). So every year we're paying $145k and only earning the ~$11k in rent, plus whatever we get from their concession sales, plus whatever they decide to donate?

What items do they sell in their concessions, and are they all 'River friendly'?

 

[MDerrick]

This donation will be provided in the form of a Lions Club Grant to the San Marcos Parks and Recreation Department for the purposes of funding improvements within the river parks.

I understand there is an issue with the LC donating to the salaries of our rangers (don't want rangers to feel beholding to Lion's club etc), however the need for more rangers was at the top of the list for the board. The Mayor and I met with Rangers regarding budget shortages last year, and they are in dire need. Can these funds be spent on park improvements, while also allowing PARD’s general budget to free-up money to support our rangers – more full-time employees needed amongst many other things. They must also provide court bailiff’s, do all incident reports for our fire department, swift water rescue, rescues from hiking trails, individuals who got drunk on the river and were reported missing by their group – it’s a huge job with a totally unsustainable budget and many part-time employees that can choose to not show-up without consequences.

3.03. In exchange for the right to sell concessions in Rio Vista Park, the Lion's Club will make an annual donation to the San Marcos Parks and Recreation Department in the amount of $285 per day that the concession stand is open. 71 days X $285 = $20K. was an escalator for inflation on prices. (2.44 increase in 2018) discussed? Also, will this free-up PARD's general budget to provide for more rangers?

 

[COSM_Admin]

Response provided by Drew Well, Director of Parks & Recreation

Questions from Mayor Hughson

In 2.06 of the lease (new terms) we have:
B. This donation will be provided in the form of a Lions Club Grant to the San Marcos Parks and Recreation Department for the purposes of funding improvements within the river parks.
Please define what would be considered "improvements" in the river parks.
Non-routine park maintenance items would be considered improvements. For example, these monies would not go to fund our mowing contract with Easter Seals. Projects like restroom improvements, additional garbage/recycling “bear proof” receptacles or projects that would usually be funded by the Capital Improvements fund.

I suggest listing what we consider the "river parks" by name.
If you would like to make an amendment to add them the Lions Club is fine with that. River Parks are defined on our website: http://sanmarcostx.gov/1364/San-Marcos-River-Parks

Could it be more trash cans? Yes

Better trash cans? If by “better” you mean installation of the “bear proof” receptacles vs the older receptacles, then yes.

More playground equipment? Yes

3.01 states "Recreation Center building" - is this the formal name of THAT side of the building other-wise known as The City Rec Hall? Some people get confused with the term "Recreation Center" and our Activity Center. That is a typo and we will correct it to ensure for consistency. It should be “City Recreation Building” throughout. Thank you for bringing that to our attention.

Questions from CM Baker

Why did staff not gather the FOIA-able information regarding donations to the City, County, School District?
Staff was not directed by the City Council on March 16 to gather additional data beyond what was previously provided.

What members of the Parks Department or high level City Staff are members of the Lions Club? No members of the Parks and Recreation Department management nor members of City Manager’s Office are members of the San Marcos Lions Club.

According to the Memo it seems they could raise tube rental rates again and likely make a similar income AND be healthier for our river, right? If they wanted to raise rental rates again they have that option. The potential impact to the river as it correlates to an increase in rental rates is unknown.

Also, the memo points out that MOST of their businesses (92%) are not local residents and yet didn't the LC's previous memo indicate that 'most' of their business was locals. Were they intentionally misleading us or what data were they using to draw that conclusion? If the increased $2 fee is not largely impacting locals and only those that come to visit, wouldn't that still have a net positive impact on their added economic value to the City?
The survey data in the study provided that it was collected on-site, by TXP, Inc., from 1,293 responses at the Lions Club over the course of Summer 2017 and that 92% of those responses were not local. The Lions Club, in their response to the Parks and Recreation Advisory Board’s recommendation resolution, reported that during the 2019 Season, the most popular zip code of customers had the 78666 zip code. The Lions Club collects this information through customer surveys almost daily. The last question posed regarding the “added economic value to the City” is confusing as I’m not sure what you are really asking. Raising the rental fee by $2 resulted in fewer tube rentals which would indicate fewer people renting tubes, would suggest fewer people in town spending money. However, we do not have the data to reflect if the number of out of town visitors renting tubes increased or decreased during 2019 that would provide a better assessment as to the overall economic impact to the community.

If I had the numbers correct from staff in the last meeting, there were three different fund amounts indicated that subsidize the cleaning of trash in our parks related to their business model (15k, 33k, 97k = $145,000). So every year we're paying $145k and only earning the ~$11k in rent, plus whatever we get from their concession sales, plus whatever they decide to donate?
Of the $145k that you mentioned only the $97,680 is actually general fund dollars that are budgeted and it does not solely involve litter removal. That is the Easter Seals contract amount within includes mowing and additional litter pickups on weekends from Memorial Day to Labor Day. We would utilize this contract regardless of the tube rental being in operation due to higher park patronage during the summer months. The $15k is funded using eco-tourism funds and the $33k is funded by the Habitat Conservation Program.

What items do they sell in their concessions, and are they all 'River friendly'?
Items sold currently include drinking water, soft drinks, prepackaged foods and snacks, t- shirts, and river related merchandise. It is unknown at this time how many of those items are “river friendly”.

Questions from CM Derrick

I understand there is an issue with the LC donating to the salaries of our rangers (don't want rangers to feel beholding to Lion's club etc), however the need for more rangers was at the top of the list for the board.
The Lions Club donations are not used to fund personnel. It has been used to purchase equipment.

The Mayor and I met with Rangers regarding budget shortages last year, and they are in dire need. Can these funds be spent on park improvements, while also allowing PARD’s general budget to free-up money to support our rangers – more full-time employees needed amongst many other things.
A separate Parks Improvements Donation fund is being proposed that will be specifically for river park improvements. Examples are referenced above in response to Mayor Hughson’s questions.

They must also provide court bailiff’s, do all incident reports for our fire department, swift water rescue, rescues from hiking trails, individuals who got drunk on the river and were reported missing by their group – it’s a huge job with a totally unsustainable budget and many part-time employees that can choose to not show-up without consequences.
To clarify a couple of things stated above: Mr. Huffman is not responsible for reporting all incident reports for the fire department, he is responsible for filing required reports per TCOLE for members of the Fire Marshal’s Office. We do not have an issue with part-time or full-time employees reporting to work, but if an employee fails to report to work as scheduled progressive discipline is followed as provided within the Employee Handbook.

3.03. In exchange for the right to sell concessions in Rio Vista Park, the Lion's Club will make an annual donation to the San Marcos Parks and Recreation Department in the amount of $285 per day that the concession stand is open. 71 days X $285 = $20K. was an escalator for inflation on prices. (2.44 increase in 2018) discussed?
No, it was not. The increase was not on concession sales, but on tube rental pricing. The $285/day was in an effort for the donation to be at around $20k each year since the operating days fluctuates from year to year as referenced in 3.03. The $285 per operating day is proposed through the next five year term and could be readdressed for the following five year renewal if desired by City Council.

Also, will this free-up PARD's general budget to provide for more rangers?
Having the predictability of the funding unlike in years past would allow staff to plan use of general fund dollars and those could be available for additional PT personnel, but the donation monies themselves will not go specifically to fund personnel.