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Item 4GCity of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork M E M O R A N D U M April 10, 2018 TO: Shana Yelverton, City Manager FROM: Chris Tribble, Director of Community Services SUBJECT: Renewal of Southlake Tennis Center Management Agreement ________________________________________________________________ Action Requested: City Council approval of a renewal of the Southlake Tennis Center Management Agreement with Stephen and Mia Poorman (dba Roxy Tennis LLC) Background Information: The current agreement between the City of Southlake and Stephen and Mia Poorman (dba Roxy Tennis LLC), was approved by City Council April 3, 2012, for management of the tennis center for an initial term that expired December 31, 2015. The agreement included three (3) successive three-year renewal options with City Council approval. In June 2015, City Council opted to renew the agreement for the first, 3-year renewal term, set to expire December 31, 2018. The proposed renewal is for a three (3) year term, January 1, 2019—December 31, 2021, and would be the second renewal option. Updates to the proposed Agreement address performance measures through customer satisfaction surveys utilizing a Net Promoter Score method; and a waiver to the City “no alcohol” policy for contractor sponsored events and private facility rentals outside of normal operating hours. The proposed Agreement will allow alcohol at the tennis center during tennis center events, and provide Roxy Tennis LLC the opportunity to allow facility use rentals for private events where alcohol may be requested. Roxy Tennis will accept responsibility that private rentals where alcohol may be allowed, will comply with all City guidelines and policies, and abide by TABC rules. Based on the performance of Roxy Tennis, LLC throughout the existing agreement, staff recommends the renewal of the 4G - 1 Shana Yelverton, City Manager Meeting Date – April 17, 2018 Page 2 of 2 City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork agreement for the management of the tennis center and to provide tennis services to the community. Financial Considerations: The Contractor is responsible for all staffing, equipment, supplies, telephone, food & beverage, and retail inventory costs. The Contractor pays the City 20% of gross revenue for leagues and 25% of gross revenue for tournament play (approximately $18.000 - $21,000 annually). In no event will the annual payment to the City be less than $15,000. Strategic Link: This item is linked to the City’s Strategy Map related to the focus area of Performance Management and Service Delivery and meets the Corporate Objectives to Collaborate with Select Partners to Implement Service Solutions. Citizen Input/ Board Review: Parks & Recreation recommended approval (6-0) April 9, 2018 City Council consideration April 17, 2018 Legal Review: City Attorney reviewed previous agreement. Alternatives: City Council decision to renew the Southlake Tennis Center Management Agreement with Roxy Tennis, LLC City Council decision not to renew the Southlake Tennis Center Management Agreement with Roxy Tennis, LLC Supporting Documents: Proposed renewal agreement Staff Recommendation: Approve renewal of the Southlake Tennis Center Management Agreement with Roxy Tennis, LLC, for the term January 1, 2019– December 31, 2021. 4G - 2 4G - 3 4G - 4 4G - 5 4G - 6 4G - 7 4G - 8 4G - 9 4G - 10 4G - 11 4G - 12 4G - 13 4G - 14 4G - 15 4G - 16 4G - 17 4G - 18 4G - 19 4G - 20 4G - 21 4G - 22 4G - 23 4G - 24 4G - 25 4G - 26