HomeMy WebLinkAbout16 C.S. ADULT SOFTBALL 10-03-94Inter-Com
mATE: September 28, 1994
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY SERVICES DEPARTMENT
COMMUNITY SERVICES ADOLT SOFTBA'r.'r. PROGRAM
~ECOMMENDATION:
Pleasure of the Council.
FISCAL IMPACT:
In fiscal year 1993/94 the adult softball program and tournament
rentals generated about $200,000. The cost to provide the program
was $145,000. This included one full time Sports Field Specialist
to set up fields and oversee the program. This also covered all
direct program costs such as vehicles, contract services and
supplies. Electrical cost for lighting which is expended from the
Public Works budget was additionally covered.
Cost for the entire Sports Division for fiscal year 1993/94 was
$174,000 which included costs for one full time Recreation
Supervisor and other sports programs such as the youth track meet
and the summer basketball clinic.
Staff has contacted a potential contractor, Major League Softball,
who has not yet responded with a financial analysis. A copy of a
letter from the organization is attached (Attachment A).
BACK~I~OUND & DISCUSSION:
With the upcoming opening of theTustin Sports Park in estimated to
be April 1995, Commissioner Ken Royal requested staff to
investigate the possibility of contracting the adult softball
program. A report regarding softball operations was presented to
the Commission at the September 15, 1994 Meeting (Attachment B).
As a result of discussion at the meeting, the Commission
recommended tha~ the matter be discussed by the City Council. The
Commission asked that Council direct staff to develop a Request For
Proposal (RFP) for contracting the adult softball program. The
Commission recommended that the RFP should include a guaranteed
income to the City and a provision for the contractor to provide a
job for the employee currently running the program.
Commissioner Royal proposed the motion for several reasons. To
date, the City Council has directed that operations of the new
Tustin Sports Park be cost recovering. A guaranteed income would
alleviate the City from financial concerns that might occur if the
current program does not expand to fill all available fields. A
concern regarding the maintenance of the fields at Columbus Tustin
Park was also raised. Commissioner Royal felt an outside
contractor could provide a safer program by having the equipment to
perform field maintenance more frequently. At this point the
Sports Park will be maintained by existing City maintenance
personnel.
Council policy directs Community Services programs to recover
direct costs plus administrative overhead. The City's adult
softball program does recover costs. Adult softball fees recover
all direct program costs, administrative overhead and more than 75
percent of the cost of the professional staff that oversees other
programs. Staff recommended that the Commission review current
fees and suggest increases that could provide funds for additional
field maintenance as part of the fiscal analysis for the Sports
Park Operating Plan.
Staff cited loss of control over field usage as a major drawback to
contracting. Presently the City shares the fields at Columbus
Tustin Park with several youth groups including AYSO, little league
and youth football. In addition, Tustin High girl's softball uses
the fields for home games. While the RFP could be drafted to allow
time for other field uses, with an outside contractor running adult
softball, most programming would be limited to adult softball. The
City could lose the flexibility to accommodate community youth
groups, especially groups who need assistance on short notice.
Contracting could also result in the displacement of full time City
staff. The RFP could be written so that the contractor would be
required to employ the Sports Field Specialist.
Plans are that some new operations at the Tustin Sports Park may be
contracted or privatized. Staff has developed an RFP for tennis
and food concessions. Revenue from a City run adult softball
program at the Sports Park is expected to be about $88,500
annually, as was noted in the Sports Park Master Plan. Maintenance
of the fields may be performed by existing staff reassigned to
Community Services due to the recent contracting for custodial
services.
If the City Council decides to ~irect staff to solicit proposals
for the administration of the adult softball program, it is
recommended that the proposals be reviewed in connection with the
Sports Park Operating Plan. The Plan will be submitted to the City
Council in February 1995.
Rec~a~ion S[pervisor
Susan M. Jones
Recreation Superintendent
Attachments:
A - Letter from Major League Softball
B - Report to Parks and Recreation
Adult Softball Program
Commission,
September 15, 1994
Mr. Gary Magill
Recreation Supervisor
City of Tustin
Attachment A
Dear Mr. Magill:
Thank you for your response to the Adult Softball Program Questionnaire. Though I have already spent a
substantial amount of time preparing our analysis, it is simply impossible to provide due diligence to this kind of
work in tour working days. A comprehensive report will follow next week, however, my preliminary findings are as
follows:
1) While providing the same program features at a tee of $400.00 or $425.00 per team. MLS would offer a royalty
structure that would guarantee the City of Tustin a Net Cash Expectation (or net margin) that is no fewer than 25
percent greater than the margin presently generated by the program:
2) In the scenario described above, MLS would warrant that program participants would enjoy substantial serv~c
level improvmems in three significant areas: field maintenance and field conditions, officiating and program
awards;
3) MLS would be in a position to increase the marketing effort and add on unique program features (such as
computerzied scoring) in an effort to create more interest and maximize the use of both the Tustin Sports Park and
.Columbus Tustin facilities:
4) The City of Tustin would enjoy the benefits of being an additionally insured party on MLS's $2,000,000 general
liability insurance policy, as you know, one personal injury, loss could wipe out years of financial ga{n: and
5) MLS would be able to offer the current Sports Field Specialist a position with the Corporation as his experience
with the program would definitely be a benefit.
Detailed numerical data and a report substantiating these findings will tbllow next week. I appreciate your
cooperation throughout this process and should you have questions regarding the in/brmation contained herein do
not hesitate to contact me. ~
Sincerely.
David R. Johnson
president
MAJOR LEAGUE SOFTBALL, iNC.
621 EAST WALNUT AVENUE, BURBANK, CA. 91501 · (818) 500-9480
Attachment B
%TE:
September 8, 1994
TO:
FROM:
SUBJECT:
PARKS AND RECREATION COMMISSION
COMMUNITY SERVICES STAFF
ADULT SOFr~A?.T. ~ OPERATIONS
Receive and file.
Commissioner Royal requested information on the organization of the
adult softball leagues and the .potential cost savings of
privatization. At the annual conference Commissioner Royal spoke
with a representative of Major League Softball (MLS), a firm that
has contracts with several Orange County Cities to run adult
softball programs. Major League Softball is conducting a detailed
financial analysis of the Tustin program. The Commission will be
updated after staff has reviewed the results of the analysis.
Presently the Tus~in softball registration fee is $400 for a ten
game season. Four seasons are offered each year with more than 110
teams each season. Currently all games are played on the four
fields at Columbus Tustin Park. The fee was increased $50 from
$350 beginning in the winter 1993 season. Exhibit A contains
results fromthe 1994 SCMAFsurvey of entry fees. In Orange County
the a~erage fee, charged per team, per game is $38. In Tustin the
fee per game per team is $40.
A program analysis (Exhibit B) from the most recently completed
season, spring 1994, shows that revenue was $45,650 and direct
expenditures were $34,464. All direct costs including 1/4 of the
Sports Field Specialist position and all sports field lighting
charges have been included. The resulting differential of $11,186
represents a 25% margin over direct program costs.
Total revenue from softball league registration and tournament
rentals for the past three years are presented in Exhibit C.
Revenue from fiscal year 1993/94 was $199,698. Expenditures for
1993 were $174,017 which shows that the 7020 sports division
recovers all costs.
For budgeting purposes for efficiently handling utility payments
are accounted for in the Public Works budget and are not included
in the Community Services budget. These costs are included in the
program analysis to assure that program fees are covering costs.
Annual expenses for lighting are about $36,000. While total
program expenditures have risen 12% since 1992, revenue has
increased 20%.
The sports division budget also includes expenses for the annual
youth track meet and summer youth basketball clinic. While the
sports division includes the entire salary and benefit costs of a
full time Recreation Supervisor, as well as a full-time Specialist.
It is estimated that the Supervisor in charge of adult sports
spends only about 10% of his time involved in the management of the
adult softball program. The Sports Field Specialist also is
available for other program duties as well.
DI$~
With the exception of salaries and benefits paid to permanent City
staff, most of the softball program is already privatized. About
1/3 of the sports budget is paid to independent contractors. This
is also the way the recreation classes are provided with a majority
of the budget being contract services.
Umpires working for Tustin are independent contractors paid $19 per
game. The Sports Field Specialist performs most of the field
maintenance but an independent contractor provides assistance off
hours at a cost of about $100 per week. Another contractor is
brought in annually to renovate and grade all four fields at a cost
of $2,800. In addition, a contractor is paid $100 per season to
generate league schedules. The City files Form 1099MISC with the
Internal Revenue Service for any contractor who earns more than
$600 annually.
A preliminary review of the advantages and disadvantages of
contracting with Major League Softball follows:
The City could derive a guaranteed income from softball
leagues and tournaments. The guaranteed income amount
would be determined when the specific services desired
and method of payment are determined.
MLS would limit liability to the City by providing
insurance coverage in the amount of $2 million, naming
the City as additionally insured. Over the past four
years there have been about ten claims filed against the
City involving softball. Staff is not aware of the
resolution of the cases but settlements would most likely
be for less than $2 million. This would not prevent the
City from being sued or pro~essing claims. ~While this~
may reduce ~egal -costs, there still will be fees for
processing claims.
MLS renovates playing fields on a quarterly basis.
Infields are graded and outfield areas heavily impacted
by softball are sodded.
MLS provides computerized scorekeeping and newsletters.
MLS provides marketing and team registration. Presently
Community Services clerical staff take registration.'
Tustin leagues have been mostly filled for the last ten
years and so an extensive marketing campaign has not been
necessary.
Disadvanta es
1.
The position of Sports Field Specialist would be
eliminated displacing a permanent full-time City
employee. The Council has been opposed to laying off any
permanent full-time employees unless absolutely
necessary.
Adult softball is a very successful and popular program
with more than 8,000 participants on about 475 teams per
year. The City would only have limited input regarding
fees, salaries and other aspects of the program. Strict
audit c6ntrols and a system to monitor complaints would
have to be developed.
Softball in Tustin would be reduced to a business. MLS
is primarily concerned with making money. The Tustin
leagues have a unique small town atmosphere. In the last
survey conducted regarding softball, many respondents
reported that while they were unhappy with the conditions
of the fields they played in Tustin due to the efforts of
the Sports Field SpecialiSt. The current Specialist has
worked at the Columbus Tustin softball fields for the
past 20 years. Other activities, such as roller hockey
and soccer would not be supported by ~LS and would
require staff assistance from the City at additional
cost.
There is a joint use agreement with the School District
for Columbus Tustin Park. Staff would have to contact
the District for approval of any changes and an RFP
process would have to be conducted.
RECO A ONS:
.~ prelimihary review~of the privatization of the adult softball
program has led staff to make the following recommendations:
1) Review the option regarding total privatization of the
adult softball program with an outside firm should the
position of Sports Field Specialist be vacated.
2) Evaluate softball fees and recommend increases.
3) Develop a marketing strategy for the adult softball
program at the Sports Park as a part of the operating
plan. The City is building three new fields at the
Tustin Sports Park that will be opening in spring 1995.
Staff must develop a plan to ensure that all seven of the
fields will be used to benefit of the community.
Staff requests input from the Commission regarding these
recommendations. If the City were to contract with an outside firm
to run the softball program, an RFP would have to be developed and
a contract opened for public bid. Because the program is so
successful, staff suggests that no changes be made at this time.
Gar~Mag~l~
Recreation Superv.isor
Attachments
Susan M. Jones ~
Recreation Superintendent
Exhibit A:
Exhibit B:
Exhibit C:
1994 SCMAF Team Survey entry Fee Results
Spring 1994 Softball Program Analysis
Adult Softball Revenue and Expense Report 1991-93
CITY O.F TUSTIN Exhibit B ,_
;OMMUNITY SERVICES DEPARTMENT.
~dicate
~sident
' Non-
~sident
~laries,
;uipment,
Supplies
PROGR~ SOFTBALL
REVENUES
110, participants
EXPENDITURES
(#) (~t~)
Umpi res
.Maintenance
1/4 Sports Specia)ist
580 Softballs
T-Shirts
Trophies
1/4 Field Grade
Lights
Chalk
PROGRAM ANALYSIS
SESSION DATES
@ $ 400 : $_ 44.000
@ $ 275 : $ 1,650
@ $,, = $
0 5 = $
TOTAL REVENUES
(Rate)
@ $' : $ 11,020
@ $' : $ 835
@ $ = $ 8,998
@ $....3.65 = $ 2,117
@ $ : .$ 1,620
@ $ : $ 348
@ $, : $ 700
4/11/94 - 6/24/94
$ 45,650
cility
@ $ : $ 8,371
@ $ = $ 455
@ S : S
@ S : S
*If shared with another group, explain.
:~ms
,LUATION:
tS
@S
oS
Prior Session Summa~ ]
(This same quarter I yr. ago).
Participants]
Revenue
Expenditures
TOTAL EXPENDITURES:
D I FFERENTIAL:
34,464
$ 11,186
Exhibit C
ADULT SOFTBALL
REVENUE & EXPENSE REPORT
1991-1993
Revenue
Expenses
1993/94 1992/93 1991/92
$199,698 $189,100 $166~532
174,017 ~ ~
25,681 20,011 11,198