SUBJECT/RECOMMENDATION:
Title
Approve First Amendment to the Venue License Agreement between the City and Ruth Eckerd Hall Inc. for the management and operation of The BayCare Sound and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On May 19, 2022, the City Council approved staff entering contract negotiations with Ruth Eckerd Hall (REH) to manage, program and operate the Venue and on December 8, 2022 a Venue License Agreement between the City and REH was approved. The grand opening of the park and the Sound occurred on June 28, 2023.
Prior to this, on April 15, 2021, staff was authorized to issue an RFP to seek consultant services for naming rights and sponsorships for Imagine Clearwater and on March 3, 2022, City Council approved issuing a purchase order to Superlative Group Inc. for Phase I, development of a Valuation Report. Following the delivery of the Valuation Report the Council approved entering Phase II, Sales Services, which began on February 2, 2023. Approximately one year later on March 7, 2024, the City Council approved a Naming Rights Agreement between BayCare Health Systems Inc. and the City naming the venue “The BayCare Sound.”
During the first year of operations of The BayCare Sound both the City and REH have recognized a need to amend the original agreement to provide for clarification and definition of some operational issues which will strengthen the agreement and relationship between the City and REH. These changes and additions to the agreement will allow REH and the City to provide for more effective and efficient operations of The BayCare Sound.
Most of the contractual amendments are intended to reflect the operational standards that have been developed and in use by both parties since the approval of the original agreement. Some of the key issues that have been negotiated and may be of specific interest to the Council and the public can be found in the “Term Sheet Between City and REH”.
REH has always been aware of their responsibility to pay for all utility costs associated with use of the Venue. The amended language clarifies what this will be. Following is a list of the utilities and percentages being paid by REH and justification as to why these percentages apply.
Electricity - 100%: The Venue is metered separately from the remainder of Coachman Park and these bills are directly attributed to REH.
Water, Sewer, Wastewater
• Restroom on the Hill - 100%: This restroom (at the northeast quadrant of the Sound near the library) is not opened to the public and serves REH or City Events only.
• Main Building including Main Restroom - 50%: This restroom is used by the public year-round except for the 35 performance days REH uses the Venue. Since the building is serviced by a 2-inch meter there is a minimum usage charge which neither REH nor the city combined will exceed. Thus, the City and REH agreed to share the minimum charge of $4,906.98 per month on a 50/50 basis.
• Vendor Area in Plaza and Green in the Park - 50%: There is a 1 ½ inch meter that services the vendor plaza area about 35 times a year and the park the remainder of the year. Like the main restrooms there is a minimum usage charge that neither REH nor the city combined will exceed. Thus, the City and REH agreed to share the minimum charge of $886 per month on a 50/50 basis.
Trash Compactor - 25%: The compactor is used 365 days a year by city staff to dispose of trash gathered in the park while REH uses the compactor only during event days. On average the compactor is emptied four times a month therefore REH agreed to pay for one compactor pull per month or 25% of the yearly bill.
Storm Water Fee - REH is responsible to pay the proportionate stormwater fees for the impervious areas (2.51 acres) within the Venue.
Rest Room Supplies - 0%: The city is responsible to open, close, clean and stock these restrooms 365 days per year for use by the public, while REH cleans and stocks the restrooms only for their performances. Since REH pays 100% of electricity cost for the rest rooms staff is recommending that the city donate restroom supplies for use by REH. Operationally this works best for both parties.
Sponsor tickets - REH will provide 10 highest priced tickets per event to the venue sponsor, at no cost to the city or venue sponsor. This has an estimated cost of $56,000 a year.
Amendment adjusts the perimeter fencing as indicated in the attachment.
City staff and REH are supportive of this amendment as it will provide a more stable business model that allows REH to operate the Venue as successful as they can, thus providing quality entertainment for the community, while at the same time allowing the citizens to enjoy many of the amenities of the Venue when not in use by REH.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A
STRATEGIC PRIORITIES:
Approval of this amendment supports several Strategic Plan Objectives, including:
• 1.5: Embrace a culture of innovation that drives continuous improvement and successfully serves all our customers.
• 2.1: Strengthen public-private initiatives that attract, develop, and retain diversified business sectors.
• 2.2: Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth. and
• 2.3: Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events.
