HomeMy WebLinkAboutOB 1 C.T. PARK CONCESS 06-16-86NDA
6-86
Inter Corn
,]lINE 10, 1986
TO:
FROM:
SU BJ ECT:
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY SERVICES DEPARTMENT
COLLINBUS TUSTIN PARK CONCESSION STAND PROPOSAL
RECOMMENDATION:
Council to authorize the Community Services staff, with assistance from the City
Attorney's Office, to draft an agreement between the City of Tustin and Mr. Dave
Ascher for the use and renovation of the Columbus Tustin Park Concession Stand.
BACKGROUND:
At the April 7, 1986 meeting, the Tustin City Council directed the Community
Services staff to work with the City Attorney to ensure all legal requirements
are met and whether such a proposal requires open competitive bids.
Attached is a copy of the findings from the City Attorney, which states that the
property Mr. Ascher wishes to lease is owned by the City and is not subject to
any agreement between the City and the Tustin Unified School District. The City
may lease property owned, held, or controlled by it for a period not to exceed
55 years without competitive bidding requirements. And finally, Mr. Ascher's
proposal to operate a concession stand at Columbus Tustin Park is not restricted
by any statue or existing agreement concerning parkland uses.
With Council Approval, staff will begin drafting an agreement.
Susan M. Jones
Recreation Superintendent
Royleen A. White, Director
Community & Administrative Services
SMJ:sk
Attachment
DATE:
TO:
FROH:
SUBJECT:
,701~ 5 · 1986
~SUSAN JONES, PARKS AND RECREATION DEPARTMENT
Inter-Corn
9 i986
CITY ATTORNEY
COLUMBUS TUSTIN PARK CONCESSION STAND PROPOSAL
Mr. Dave Ascher has submitted a proposal to the City of Tustin
requesting the opportunity to operate a snack bar to be located
in the Columbus Tustin Park, with a percentage of the profits of
the concession stand to be donated to local youth sports programs
and a percentage to the City as payment for lease of City-owned
property. Mr. Ascher has estimated that the costs of forming a
business entity to operate the stand, modifying the concession
stand structure to meet County Health Department requirements,
providing for insurance, licensing and supplies, will range be-
tween $10,000.00 and $12,000.00.
Mr. Ascher has proposed that the business entity formed to run
the concession stand would pay to the City five percent (5%) of
the monthly gross after one (1) year. Prior to the first full
year of operation, fees paid to the City would be as follows:
A®
B.
C.
D.
First Quarter - 1% of Monthly Gross
Second Quarter - 2% of Monthly Gross
Third Quarter - 3% of Monthly Gross
Fourth Quarter - 4% of Monthly Gross
A monthly accounting statement would be presented to the City on
or before the 15th of each month. An insurance policy would be
purchased of not less than $1,000,000.00 for public liability and
a policy of not less than $25,000.00 for property damage.
We have researched any legal requirements or prohibitions which
may pertain to Mr. Ascher's proposal. The park area includes
properties of the Tustin Unified School District, the Orange
County Flood Control District, and the City of Tustin. The
existing concession building which Mr. Ascher desires to lease is
located on a portion of the property owned by the City, not
subject to an agreement between the City and the School District
for a portion of the park occupied by lighted ballfields, and a
portion of the tennis courts.
A city may lease property owned, held, or controlled by it, for a
period of not to exceed 55 years, without competitive bidding
requirements, and may lease it for 99 years if certain conditions
are met, including the requirement that the lease be competi-
tively bid. Accordingly, it would appear that the parkland
property which includes the concession building may be leased to
Mr. Ascher. In addition, the construction or modification of
buildings on the parkland property by private persons is not
inconsistent with permitted park purposes if the building is
constructed with the permission of the City Council, the building
is attractive, is 'of a type of architecture approved by the City
Council, and the building is used for public meetings or for
meetings of historical or patriotic organizations.
In conclusion, the City may lease the property in question to Mr.
Ascher for a period not to exceed 55 years, without competitive
bidding. Mr. Ascher's proposal to operate a concession stand at
Columbus Tustin Park furthermore is not restricted by any statute
or existing agreement concerning parkland uses.
If you have any questions in regard to this matter, please do not
hesitate to contact the undersigned.
CITY ATTORNEY
SUZANNE ATKINS
DEPUTY CITY ATTORNEY
SDA:cj :D: 05/14/86 (6)
SDA:cj :R: 06/05/86 (6)
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