February 24, 2004

SUBJECT: Proposed Change to Tennis Center License Agreement

REPORT IN BRIEF

On November 11, 2003, City Council reviewed Report to Council 03-380 and approved transfer of the License to operate the Sunnyvale Tennis Center from Jan Young to Brian Garrow. At that time, Council also approved a number of minor modifications to the previous License, all effective January 1. 2004.  However, Mr. Garrow has since suggested another, more significant change to the License. He has asked that the License be assigned to his company, B.G. Tennis, Inc. rather than to himself. Staff has reviewed this request and considers it reasonable and not in conflict with City interests. Therefore, staff recommends that this modification to the License be approved.

BACKGROUND

Mr. Jan Young has operated the Sunnyvale Tennis Center since its inception in 1976. This has been a positive and fiscally successful means of providing tennis services to the community. On November 11, 2003, Council approved transfer of the License Agreement (including minor modifications) to Mr. Brian Garrow (reference RTC 03-380).

Following Council’s November 11, 2003, action, Mr. Garrow requested an additional modification that would require Council’s additional approval. He has asked that the License be assigned to his company, B.G. Tennis, Inc. rather than to himself. Because the close timelines did not allow an opportunity for Parks and Recreation Commission and City Council to review this proposed change prior to January 1, 2004, Jan Young has remained in place as Licensee to date. Please see Attachment A, Memorandum to Mayor and City Council dated December 10, 2003.

This report reviews Mr. Garrow’s interests and requested modification and presents a revised Agreement for Council’s consideration.

EXISTING POLICY

Sunnyvale Tennis Center License Agreement (Attachment B).

DISCUSSION

Since the November 11, 2003, City Council approval of transfer of the Sunnyvale Tennis Center operating License from Jan Young to Brian Garrow, staff has worked with Mr. Garrow to secure transfer of the Agreement.

With concern for managing liabilities, Mr. Garrow requested that the License be assigned to his company B.G. Tennis, Inc. rather than to himself individually. City Attorney’s Office and Parks and Recreation Department staff have reviewed this request and included language to that effect in the proposed new Agreement (please see Attachment B). While altering assignment of the License, this change requires that Brian Garrow continue in the specific role of Tennis Professional for the Center. In this manner, the License will belong to the corporation while day-to-day operations will be managed by Mr. Garrow as was previously intended.

Staff has met with Mr. Garrow and reviewed proposed language for the Agreement. Language has been developed that meets the needs of both parties. The attached License Agreement for operation of the Sunnyvale Tennis Center protects City interests while allowing the License to be assigned to B.G. Tennis, Inc.

Staff sees no negative outcomes to the proposed change and recommends that Council approve the License Agreement as attached.

FISCAL IMPACT

Approval of requested change to the License Agreement would have no impact on the financial terms of the Agreement and would result in neither a positive nor negative fiscal impact to operating or capital budgets.

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.

The Parks and Recreation Commission conducted a public hearing on this issue during its regularly scheduled meeting on February 11, 2004.

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

ALTERNATIVES

1. City Council approves the License Agreement to operate Sunnyvale Tennis Center be modified to name B.G. Tennis Inc. as Licensee and authorizes City Manager to effect such a change.

2. City Council does not approve the License Agreement to operate Sunnyvale Tennis Center be modified to name B.G. Tennis Inc. as Licensee and authorizes City Manager to effect such a change.

3. Other action as Council determines.

RECOMMENDATION

Staff recommends Alternative 1 above.

The Parks and Recreation Commission held a public hearing and reviewed this report on February 11, 2004. An initial motion to further clarify the definition of “Tennis Center Food Services” failed, after which the Commission voted unanimously to recommend Alternative 1 (4-0, DeWolf absent).

Prepared by:

Curtis Black
Superintendent of Parks
Parks and Recreation Department

Reviewed by:

Robert A. Walker
Director, Parks and Recreation

Approved by:

Amy Chan
Acting City Manager

Attachments

A. Informational Memorandum to City Council dated December 10, 2003

B. License Agreement for Operating the Sunnyvale Tennis Center (pdf format)