SunnyvaleRTC

November 11, 2003

SUBJECT: Proposed Transfer of Tennis Center License from Jan Young to Brian Garrow (03-380)

The City’s Las Palmas Tennis Center complex has been operated under license agreement by Mr. Jan K. Young since it was first developed in 1976. Based on Mr. Young’s outstanding management of the Tennis Center, that license agreement has been renewed several times. The existing license agreement is not due to expire until January 1, 2012. However, the existing agreement allows Mr. Young to transfer the license under certain conditions with the approval of City Council. Mr. Young has previously communicated to the City his desire to transfer the license as of January 1, 2004, to Mr. Brian Garrow. This report explores the possibility of such a transfer and recommends that such a transfer be approved.

BACKGROUND

Mr. Jan K. Young has managed the Las Palmas Tennis Center complex under a license agreement with the City ever since it was first constructed in 1976 (See Attachment A, “Tennis Center License Agreement.”). The first agreement had a life of ten years. That agreement was extended in 1987, 1988, 1989, 1990, 1991, 1994, and most recently in 1997. The existing license agreement is not due to expire until January 1, 2012. The 15-year life of the existing agreement takes into consideration Mr. Young’s financial contributions to the recent renovation of the Las Palmas Tennis Center (which included additional parking, three additional courts, and development of a concession stand), allowing him sufficient time to recoup his investments.

At the time that the existing agreement was developed, however, Mr. Young knew that he might not remain the operator of the Tennis Center for another 15 years. For this very reason, the terms of the existing agreement afford Mr. Young the option of assigning or transferring the license to another operator no earlier than January 1, 2004, and subject to City Council approval. That approval is to be based upon a determination by City Council that:

a) the proposed assignee or transferee is sufficiently qualified to exercise the license; and

b) the proposed assignee or transferee has been sufficiently trained by the Licensee (Mr. Young) for a period of not less than one (1) year on a full-time, continuous basis.

On April 13, 2002, Mr. Young advised the City of his desire to transfer his license to operate the Las Palmas Tennis Center to Mr. Brian Garrow effective January 1, 2004.

On December 6, 2002, staff advised City Council and the Parks and Recreation Commission of Mr. Young’s intentions to pursue a formal transfer of the license to Mr. Garrow effective January 1, 2004, and of his plans to prepare Mr. Garrow to assume that license agreement. (See Attachment D, “Memo to City Council and Parks and Recreation Commission.”) Mr. Garrow would assume the current license agreement (with minor modifications) which expires January 1, 2012.

EXISTING POLICY

Sunnyvale Tennis Center License Agreement (Attachment A).

DISCUSSION

Proposed Transfer of License

Jan Young has operated the Sunnyvale Tennis Center since it was first opened in 1976. He has performed admirably as the licensee and has developed a wealth of experience and knowledge with regard to related operations.

The Tennis Center has flourished under Mr. Young’s oversight. From pro shop services to coaching philosophies, the Tennis Center reflects the strong influence of Mr. Young. Several physical improvements have been made during his watch, including a significant expansion in the number of courts. During his tenure, the Tennis Center was awarded the distinction of “Outstanding Tennis Facility” by the United States Tennis Association. Similarly, Mr. Young has influenced the growth and character of players, ranging from those who play for fun to those who have gone on to become nationally ranked professionals. (Mr. Garrow is a good example of the latter.)

Mr. Young has cultivated a growing and devoted following of tennis players at the Tennis Center--from lessons to league play, from tournaments to drop-in play, Mr. Young has provided a broad range of tennis opportunities for those of all skill levels.

Mr. Young is also well-known for his engaging, respectful demeanor. Always smiling, never demanding, Mr. Young has led by example, shown creativity and initiative, and worked through difficult issues calmly and objectively. He has been responsive to both the public and to staff and has provided the highest caliber of customer service.

For all these reasons, the City and the Tennis Center will miss Mr. Young. His proposed departure is completely voluntary, and he leaves on the best of terms. After more than a quarter century as licensee of the Tennis Center, he is simply ready for a change of pace.

Qualifications and Training of Mr. Garrow

Fortunately, Mr. Young has worked as hard at finding a replacement for himself as he has at all his other endeavors. The proposed assignee, or transferee, Mr. Brian Garrow, has been employed by Mr. Young at the Tennis Center since June of 2000. In March, 2001, Mr. Young began training Mr. Garrow to succeed him as licensee of the Tennis Center. As a result, Mr. Garrow has received well over the one year’s training required by the agreement between the City and Mr. Young.

Mr. Garrow came to the Tennis Center with an impressive resume, both as a professional player (ranked as high as #93 in the world in singles and #12 in doubles!) and as a coach (brought both the UCLA and Pepperdine University teams to top ten rankings in the NCAA). While not essential to the successful operation of the Tennis Center, these credentials can do nothing but help the Tennis Center to thrive.

Mr. Young’s own endorsement of Mr. Garrow (See Attachment B, “Endorsement of Mr. Garrow by Mr. Young”) is also meaningful to staff. Mr. Young indicates “He is more than qualified to handle this position. I believe the tennis program in our community will be more than happy to have a person of Mr. Garrow’s tennis skills, education, experience, character, tennis contacts, reputation and drive in this leadership position. I have known Brian since he was three years old, over 30 years ago, and he has always impressed me with his accomplishments. Equally important, Mr. Garrow is a really nice individual. This last statement is unusual in a business transaction, but to me it is of primary importance. Mr. Garrow has been introduced to the Sunnyvale Tennis Club. He is slowly developing a positive relationship with them, and they like him very much. Likewise our staff at Las Palmas thinks very highly of Mr. Garrow, so the transition should be seamless.”

Mr. Garrow has now had an opportunity to demonstrate overall leadership and management at the center, and staff has met several times with him to discuss the possibility of his becoming the new licensee. Staff believes Mr. Garrow would perform very well as the Tennis Center licensee, and that the City would be hard-pressed to find a more suitable replacement for Mr. Young.

Minor Modifications to Agreement

§ The proposed transfer of license from Mr. Young to Mr. Garrow has caused both parties, as well as City staff, to spend considerable time of late reviewing the terms of the license agreement. As a result, several minor modifications are being proposed. It is critical to note, however, that these are modifications staff would have recommended regardless of whether or not Mr. Young intended to pursue the transfer of license. In other words, the bulk of the proposed modifications have nothing to do with the transfer of license—this is simply a convenient time to make minor revisions. Please see Attachment C, “Proposed Revisions to Tennis Center License Agreement.”

FISCAL IMPACT

The transfer of the Sunnyvale Tennis Center license will have no impact on the financial terms of the agreement between the City and the licensee. However, one could effectively argue that the transfer of operations from one individual (Mr. Jan K. Young) to another (Mr. Brian Garrow) could have a meaningful impact (positive or negative) on the operation of the Tennis Center, including revenue streams. This is why Council approval, based upon the qualifications of the proposed new operator, is required in order to effect a transfer of the license.

PUBLIC CONTACT

Public contact was made through posting of the Parks and Recreation Commission agenda and Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the City Clerk’s office, Library, Parks and Recreation Administration office, Corporation Yard, Community Center, Senior Center and Sunnyvale Tennis Center.

Flyers notifying the public of the Commission’s intent to study this matter and of the Council’s intent to take action were posted at the Sunnyvale Tennis Center and the City’s neighborhood park and school tennis courts (see Attachment E, “Flyer Noticing Public of Proposed Transfer of License”).

On October 22, 2003, the Parks and Recreation Commission conducted a public hearing on this issue during its regularly scheduled meeting.

Copies of this report were provided to Mr. Jan Young, Mr. Brian Garrow, and the Sunnyvale Tennis Club.

ALTERNATIVES

1. City Council approves Mr. Jan K. Young’s proposal to transfer his license to operate Sunnyvale Tennis Center to Mr. Brian Garrow effective January 1, 2004, and authorizes the City Manager to effect such a transfer.

2. City Council does not approve Mr. Jan K. Young’s proposal to transfer his license to operate Sunnyvale Tennis Center to Mr. Brian Garrow effective January 1, 2004.

3. City Council approves the recommended revisions to the Sunnyvale Tennis Center license agreement as noted in Attachment C, and authorizes the City Manager to effect said changes.

4. City Council does not approve the recommended revisions to the Sunnyvale Tennis Center license agreement as noted in Attachment C.

RECOMMENDATION

Staff recommends Alternatives 1 and 3 above.

Parks and Recreation Commission reviewed this report on October 22, 2003, and heard supportive information provided by the president of the Sunnyvale Tennis Club, as well as a brief statement from proposed licensee Brian Garrow. The Parks and Recreation Commission unanimously recommended Alternatives 1 and 3 as recommended by staff.

Prepared by:

Robert A. Walker
Director, Parks and Recreation Department

Reviewed by:

Mary Bradley
Director, Finance Department

Approved by:

Robert S. LaSala
City Manager

Attachments

A. Sunnyvale Tennis Center License Agreement

B. Endorsement of Mr. Garrow by Mr. Young

C. Proposed Revisions to Tennis Center License Agreement

D. Memo to City Council and Parks and Recreation Commission

E. Flyer Noticing Public of Proposed Transfer of License (.pdf format)