Sparks City Council Meeting 2/12/2018 2:00:00 PM

    Monday, February 12, 2018 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

General Business: 9.2

Title: Consideration, discussion and possible approval of Amendment No. 1 to the Lease Agreement (A-3966) between the City of Sparks and the Reno Rodeo Foundation dated February 25, 2013.
Petitioner/Presenter: Tracy Domingues, Parks & Recreation Director/Tracy Domingues, Parks and Recreation Director
Recommendation: That the City Council approve the amendment to the lease agreement dated February 25, 2013 between the Cityof Sparks and the Reno Rodeo Foundation.
Financial Impact: Unknown as electric and water service charges will be temporarily suspended.
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

The Reno Rodeo Foundation (RRF) is interested in extending their lease agreement with the City of Sparks for the maintenance and programming of the Gandolfo Rodeo Arena in Horseman’s Park at 2200 Loop Road.



Background:

According to a staff report by Parks and Recreation Director Les Hicks, Jr. dated June 14, 1993, “The City of Sparks acquired the 40-acre parcel in 1927 from the Federal Government. The deed, signed by Calvin Coolidge, states that the city can use the land for a city dump or municipal purposes.  In the 1970’s, the City of Sparks started transforming the old dump site into a professional rodeo area with holding chutes, grandstands, announcer’s booth and parking lot. The site presently (1993) consists of 3 different levels which are primarily used for parking and storage of trees and limbs removed by the Parks and Recreation Department.”

 

On July 28, 1980, the City of Sparks awarded a bid to Ferretto Construction Company to construct the road to Joe Gandolfo Arena at Horseman’s Park in the amount of $80,254.04. This road was and continues to be the access road to Horseman’s Park and the paving and maintenance is the city’s responsibility.

 

On May 24, 1982, the City Council passed and adopted a grant offered by the Reno/Sparks Convention Authority in the amount of $64,840 to defray the cost of installing improvements at the Gandolfo Arena in Horseman’s Park.      

 

On June 14, 1993, a lease agreement was proposed by Les Hicks and approved by City Council by and between Sierra Nevada Junior Rodeo, Inc. The lease was valid for a term of two years beginning 6/14/1993 and ending on 6/14/1995, with the option to renew for an additional two year term.  A letter dated 6/17/1997 to Mr. Gandolfo from the City Clerk stated “The City of Sparks wishes to extend the existing lease agreement for the ‘Gandolfo Arena’, from June 14, 1997, until a new lease agreement is approved by the City Council at a future Council Meeting. This probably will be sometime in July, 1997.”  Mr. Gandolfo signed this letter in agreement on 6/19/97.  There is no record of this lease being presented or approved by City Council in July, 1997 or later. Therefore, it is the opinion of the Assistant City Attorney that the lease is null and void.

 

On November 25, 2012, Sparks City Council approved staff to enter into lease negotiations with the Reno Rodeo Association (RRA). During negotiations, it was decided that the RRF would be better suited as a non-profit 501(c)3 organization to enter into the proposed lease agreement.

 

As of 1997, the City of Sparks Parks and Recreation Department continued to manage the use and maintenance of the Gandolfo Rodeo Arena.  Activity was closely monitored during the summers of 2011 and 2012.  It was determined that the city no longer had the expertise or resources to continue the maintenance and/or programming of this special use facility. In the best interest of efficiency and promotion of the Gandolfo Arena, staff prepared a lease agreement with the RRF.  The agreement went into effect February 25, 2013.

 

The RRF’s non-profit stated purpose is to enhance and enrich the lives of children and families in northern Nevada and to cultivate, foster and promote interest and participation in rodeo activities, entertainment, the proper care and management of domestic animals and western heritage experiences; and to provide and promote competitions, exhibitions, shows and entertainment of any and all descriptions for the general enjoyment and instruction of its members and the public. Staff believes that the RRF’s goals continue to be compatible with those of the city and that the RRF remains the best resource to provide the appropriate management, maintenance and programming of the Gandolfo Arena while enhancing the quality of life in Sparks.



Analysis:

Staff received a letter dated November 24, 2017, from RRF Executive Director Clara Andriola. The letter fulfills the provision of written notification required to extend the said agreement for another five years. The current agreement expires on February 24, 2018.

The amendment outlines changes in two items of the lease dated February 25, 2013:

  1. The first is a change of address for the RRF; and
  2. The second is the removal of charging the RRF for electricity and water usage at the facility. In 2017, staff discovered the City had overcharged the RRF for both electricity and water usage over the past five years. The RRF has agreed to this arrangement since the city cannot determine what amount to refund at this time. Staff will monitor the usage in 2018 in order to determine the amount of annual overcharges. Findings will be considered in future lease negotiations.

The Parks and Recreation Commission approved this amendment as presented on January 24, 2018.



Alternatives:

City Council may elect not to approve the proposed amendment to the lease agreement dated February 25, 2013 between the City of Sparks and the Reno Rodeo Foundation as presented by staff.

City Council may direct the City Manager to pursue another option.



Recommended Motion:

I move to approve the proposed amendment to the lease agreement dated February 25, 2013 between the City of Sparks and the Reno Rodeo Foundation as outlined by staff.



Attached Files:
     Letter from RRF opting to renew dtd 11.24.17.pdf
     2018 Reno Rodeo Lease Amendment Signed.pdf
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