JIM SCHAAD ASSISTANT CITY MANAGER August 29, 2019 Terance Frazier Central Valley Community Sports Foundation 1411 Tuolumne Street, Suite Fresno, California 93721 RE: Granite Park Ground Lease and Service Agreement Contracts Dear Mr. Frazier, I would like to address several items related to the Granite Park Facility: First, the Central Valley Community Sports Foundation (Foundation) has brought to the City of Fresno's (City) attention that numerous lamps for baseball field lighting at the facility have failed, causing a nighttime safety concern. The Foundation has asked the City for assistance in replacing these lamps. The Ground Lease Agreement between the City and the Foundation clearly states that the Foundation shall at its own cost and expense and without any cost or expense to the City, assume all maintenance, security, repair, landscaping and associated costs for Granite Park. In order to address the safety cdncern, the City has agreed to have forty-four (44) lamps professionally removed and replaced with genuine MUSCO product at a cost not to exceed $6,534. The City will provide a receipt to the Foundation upon completion of work and warranty will be through the manufacturer. The Foundation has verbally agreed to reimburse the City for this expense using the digital billboard installation starting bonus or billboard rent revenues, whichever is earlier. In the event that the construction of the digital billboard is delayed beyond the date that the next Service Agreement Payment is due to the Foundation from the City, the full amount expended by the City for lamp replacement will be deducted from the City?s payment. Attached is an agreement that, upon execution by both parties, will allow the City to move fonNard with lamp replacement. Please sign the agreement, and return it to my attention within 30 days of this letter if the Foundation would like to proceed as outlined above. Of?ce of the City Manager City Hall 2600 Fresno Street 0 Fresno, California 93721-3600 (559) 621?7784 - FAX (559) 621-7776 - CENTRAL VALLEY COMMUNITY SPORTS FOUNDATION August 29, 2019 Page 2 of 3 I would also like to follow up on items that the Foundation agreed to provide to the City in our June 6, 2019, meeting. These included: 0 Financial records (ledger and backup documentation): The Foundation stated this information would be available for our Finance Department's review at the end of June 2019. 0 Transfer of Granite Park interests: The Foundation indicated the desire to transfer interest from the Foundation to Central California Baseball Association for Gateway Ice Center as those funds currently are appropriated in the same accounts as Granite Park as identified in the audit. The Foundation was to check with the lender to ensure this was possible. . Feedback on a list of City proposed agreement changes: At our June meeting, the Foundation agreed to review and provide feedback on a list of City proposed changes to the ground lease and service agreement to reconcile current operations versus terms of those agreements. Once the City receives the above items, we can move fonNard with scheduling a meeting to continue future discussions on the contract. Additionally, the Service Agreement between the City and the Foundation requires the Foundation to carry minimum levels of insurance. The last provided insurance documentation indicates coverage expired on February 11, 2019. City staff has requested current coverage documentation from the Foundation's insurance provider on multiple occasions for the past several months, but the City has yet to receive documentation. This creates a concern that future claims resulting from Granite Park activities may not be covered. Please submit certified copies of the required policies, including all endorsements immediately. Lastly, please provide an update on the status of the payment for water utilities at the property. My understanding is that the account is two months overdue, with an outstanding balance of $24,680. Our staff is prepared to assist the Foundation with a payment plan option, if no contact is made within the next 30 days, the water service will be shut off. Your attention and prompt response to these matters is appreciated. If you have questions or concerns, please contact me via phone at (559) 621-7784 or Jim.Schaad@fresno.gov. CENTRAL VALLEY COMMUNITY SPORTS FOUNDATION August 29, 2019 Page 3 of 3 Sincerely, Attachment: Granite Park Light Replacement Agreement cc: Lee Brand, Mayor Wilma Quan, City Manager Jane Sumpter, Assistant City Manager Laura Merrill, Deputy City Manager Michael Lima, Controller/Finance Director