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R-1999 - 01/25/2022 - SPORTS CORE - Resolutions Supporting Documents ITEM B.A.1 BOARD OF TRUSTEES MEETING VILLAGE of SAMUEL E. DEAN BOARD ROOM OAK B R , K BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Regular Board of Trustees Meeting of January 25, 2022 SUBJECT: Soccer Field Management Agreement FROM: Greg Summers,Village Manager 6,S. BUDGET SOURCE/BUDGET IMPACT: The proposed Soccer Management Agreement would net a minimum of$94,000 in Soccer Management Fees in 2022 and at least$70,000 to cover athletic field maintenance. The four subsequent years of the Soccer Management Agreement would net at least$100,000 annually and maintenance fees would increase by $1,000 annually throughout the life of the agreement. In addition to the base Soccer Management Fee, when the field manager realizes gross revenues in excess of $300,000 during any fiscal year, Village revenues will increase by capturing 75%of such excess amount. RECOMMENDED MOTION: I move the Village Board approve Resolution 2022-SC- AG-R-1999 "A Resolution Approving and Authorizing the Execution of an Agreement for the Management of Soccer Fields" Background/History: On November 23, 2021, the Village approved Resolution 2021-SC-AG-R-1976 authorizing the Village Attorney to enter into negotiations with Premier Athletic Management for soccer field management and bring back the tentative agreement for approval at a future Village Board Meeting. Subsequent to that meeting, staff and the Village Attorney worked with Premier Athletic Management and the draft agreement as previously reviewed by the Village Board to negotiate an agreement covering the full spectrum of soccer field management services. Substantive changes from the Soccer Management Agreement previously approved by the Village Board are as listed below: BOT AGENDA Page 1 6--S. • First year base management amount reduced to $94,000 in light of the two new fields not being available throughout 2022 due to new turf establishment. All subsequent years remain at $100,000 annually for the base amount in lieu of the CPI-U adjustments specified in the original draft. • Insurance coverage requirements were updated to reflect separate requirements for both the management company as well as the end users of the fields. Accordingly, coverages were matched to reflect those actually carried by the respective organizations as well as in consultation with the Illinois Risk Management Agency (IRMA) • A requirement was added for Premier Athletic Management to include the Village on the liability release that the end users execute to utilize the fields. • An obligation for Premier Athletic Management to purchase, inspect and maintain the goals and nets for use on the fields. • A reworded right of first refusal for the end users to continue to utilize the fields, at the then current field rate, for the initial five-year term regardless of whether the Village elects to exercise its rights of termination with Premier Athletic Management as specified in the agreement. • Village provision of a trash dumpster for waste disposal with an offsetting requirement for Premier Athletic Management to provide and service waste receptacles,placing the waste in the Village provided dumpster. • Affirmative requirement for Premier Athletic Management to contract for, manage, and pay for the portable toilet facilities used at the Athletic Fields. Staff believes that these revisions collectively represent an agreement consistent with the original draft as reviewed by the Village Board with minor adjustment required as more details of the overall operation were analyzed and considered. In any case, the agreement itself covers the full cost of maintenance and nets an additional (minimum) of$94,000 to $100,000 annually, as compared to the prior arrangement where all soccer revenues were received by the operator. Premier Athletic Management would also enter into a lease agreement for the "Soccer Office" commonly known as 700 Oak Brook Road. The lease agreement is listed separately on the January 25,2022 Village Board meeting agenda for approval. Recommendation: Staff recommends that the Village Board approve Resolution 2022-SC-AG-R-1999 "An Resolution Approving and Authorizing the Execution of an Agreement for the Management of Soccer Fields" BOT AGENDA Page 2