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Agenda 09/24/2024 Item #11G (Fourth Extension and Amendment to Agreement No. 17-7152 “Parks and Recreation Pickleball Concessionaire,” with Pickleball Enterprises LLC, d/b/a Naples Pickleball Center)9/24/2024 Item # 11.G. ID#: 2024-1172 Executive Summary Recommendation to approve the Fourth Extension and Amendment to Agreement No. 17-7152 “Parks and Recreation Pickleball Concessionaire,” with Pickleball Enterprises LLC, d/b/a Naples Pickleball Center, to provide a five-year extension through 2032, clarify agreement terms including public use of courts, maintenance responsibilities, and utility costs, and authorize the Chairman to sign the attached Amendment. OBJECTIVE: Recommend approval of the Fourth Extension and Amendment to the Agreement with Pickleball Enterprises LLC, d/b/a Naples Pickleball Center, to provide a five-year extension and clarify agreement terms. CONSIDERATIONS: The Pickleball Concessionaire Agreement for East Naples Community Park (ENCP) was originally approved October 24, 2017, Item 16.D.8. Pickleball Enterprises LLC provides pickleball services year-round at ENCP. Pickleball Enterprises LLC has expanded its ownership to include members of Pickleball 4 America and Spirit Promotions, LLC. The Fourth Amendment is designed to provide a more comprehensive and collaborative approach to pickleball services at ENCP. The current Concessionaire Agreement is valid through October 2027. Pickleball Enterprises LLC has worked with staff to amend and extend the existing Concessionaire Agreement from the current expiration date of October 24, 2027 through October 24, 2032. The Amendment assigns greater maintenance and utility cost responsibility to the vendor and clarifies several contract provisions that will facilitate operating efficiency. The Fourth Amendment provides the following: • The current agreement runs through October 2027. This amendment extends the agreement through October 2032 • Pickleball Enterprises LLC takes on responsibility for all capital maintenance for the pickleball facilities at East Naples Community Park (including court resurfacing as required) which is estimated to be $400K over the three years of the existing term and $600K in the extended term. • Pickleball Enterprises LLC will take on an extra $50K in utility cost consideration in the current term and an estimated $150K in the extended term. • Expanded hours of operation further minimizing the County’s staffing and expenses while better defining public access to courts by memorializing the courts needed for open public play and the U.S. Open Pickleball Academy. Public court access is increasing from 6 to 9 courts with greater hours of opportunity for public pickleball access. • Pickleball Enterprises LLC projects revenue to increase by 60-75% over the first three years through expanded programming resulting in higher commissions for the County • Provides for new amenities that will benefit both pickleball members and County residents who use the facility, including expanded youth programs, better leagues & instruction, and expanded food & beverage operations. Staff and Pickleball Enterprises LLC will continue to refine operations as needed and bring forth future amendments as necessary to facilitate the provision of services to the public. FISCAL IMPACT: The agreement calls for the Concessionaire to remit 15% of gross revenue. Remittances for the current fiscal year are estimated to be $205,000. The Concessionaire will also provide a phased-in consideration for utilities of $5,000 in FY25, $15,000 in FY26, $30,000 in FY27 and future. Maintenance considerations provided by the Concessionaire have an estimated value of $400,000 over the remaining years of the existing contract term. GROWTH MANAGEMENT IMPACT: There are no Growth Management impacts associated with this Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. – Page 1876 of 4908 CMG RECOMMENDATIONS: Approve the Fourth Extension and Amendment to Agreement No. 17-7152 “Parks and Recreation Pickleball Concessionaire,” with Pickleball Enterprises, LLC, d/b/a Naples Pickleball Center, to provide a five-year extension through 2032, clarify agreement terms including public use of courts, maintenance responsibilities, and utility costs, and authorize the Chairman to sign the attached Amendment. PREPARED BY: James Hanrahan, Interim Division Director Parks and Recreation Division ATTACHMENTS: 1. Concessionaire 4th Amendment MD signed 2. 17-7152 - ENCP PB Original Agrmt 2017.10 3. 17-7152 - ENCP PB 1st Amendment 2019.10 4. 17-7152 - ENCP PB 2nd Amendment 2020.12 5. 17-7152 ENCP PB 3rd Amendment FullyExec Page 1877 of 4908 Page 1878 of 4908 Page 1879 of 4908 Page 1880 of 4908 Page 1881 of 4908 Page 1882 of 4908 Page 1883 of 4908 Page 1884 of 4908 Page 1885 of 4908 Page 1886 of 4908 Page 1887 of 4908 Page 1888 of 4908 Page 1889 of 4908 Page 1890 of 4908 Page 1891 of 4908 the correction of any deficiency as cited by such inspectors; failure to comply shall be considered a material breach of the Agreement. 23. WAIVER OF INTERFERENCE. The Concessionaire hereby waives all claims for compensation for loss or damage sustained by reason of any interference with the concession operation by any public agency or official in enforcing their duties or any laws or ordinances. Any such interference shall not relieve the Concessionaire from any obligation hereunder. 24. WAIVER OF LOSS FROM HAZARD. The Concessionaire hereby expressly waives all rights, claims, and demands and forever releases and discharges the County from all demands, claims, actions and causes of action arising from this Agreement, except intentional torts. 25.NO LIENS. Concessionaire will not suffer or, through its actions or by anyone under its control or supervision, cause to be filed upon the property any lien or encumbrance of any kind. In the event any lien is filed, Concessionaire shall cause such lien to be discharged within ten (10)days after written notice to do so from the County. 26.ORDERLY OPERATIONS, ETC. The Concessionaire shall have a neat and orderly operation at all times and shall be solely responsible for necessary housekeeping services to properly maintain the premises. There shall be no living quarters, nor shall anyone be permitted to live on the premises. 27.EMPLOYEES; MANAGER. The Concessionaire shall employ people to work at this facility who are neat, clean, well-groomed and courteous. All employees shall observe all the graces of personal grooming. Subject to the American with Disabilities Act, Concessionaire shall supply competent employees, who are physically capable of performing their employment duties and the County may require the Concessionaire to remove an employee it deems careless, incompetent, insubordinate or otherwise objectionable and whose continued employment on Collier County property is not in the best interest of the County. All Concessionaire employees shall wear shirts and shorts with the Concessionaire's logo or other identifying marking. The Concessionaire shall have an experienced manager overseeing the concession operations at all times when open for business. When the manager is absent, the operation shall be directed by an assistant manager, experienced and trained in Concession operations and at least twenty-one (21) years of age. All managers will be Food Safe Compliant with all State of Florida and Collier County "Serve Safe" requirements and licenses. There shall be an after-hours contact person available by telephone and the contact phone number shall be provided to the Director of Parks and Recreation, or Designee. Background checks and drug tests must be conducted on all employees prior to performing services at the concessions which is to be conducted by the County's Facilities Management staff at the expense of the Concessionaire. The Concessionaire must have a drug and alcohol policy consistent with County Policies (CMA 5312). 28.HOURS OF OPERATION. During the term of this Agreement programs and concession will be adequately staffed on days and times approved by the Parks and Recreation Director or his/her designee. Days and hours will be posted and any changes from posted hours will be communicated within seven (7) days of the change. The operation should continue throughout the year including applicable holidays. Page I 8 Contract# 17-7152 Parks and Recreation Pickleball Concession}'jr,El:'\{�c✓qc� i·-,.,_,,,,.J' Page 1892 of 4908 Page 1893 of 4908 Page 1894 of 4908 Page 1895 of 4908 Page 1896 of 4908 Page 1897 of 4908 Page 1898 of 4908 Page 1899 of 4908 Page 1900 of 4908 Page 1901 of 4908 16F2 EXTENSION AND AMENDMENT OF PARKS AND RECREATION PICKLEBALL CONCESSIONAIRE AGREEMENT THIS EXTENSION and AMENDMENT AGREEMENT is made and entered into this oa day ofakob<le, 2019, by and between Collier County, a political subdivision of the State of Florida ("County"), and Pickleball Enterprises LLC d/b/a Pickleball Pro Shop of Collier County Pickleball Pro Shop") authorized to do business in Florida. RECITALS: WHEREAS,the parties entered into a Concessionaire Agreement dated October 24,2017, a copy of which is attached to this Agreement, wherein Pickleball Pro Shop was granted the privilege to provide concession services and comprehensive management at East Naples Community Park for a term of 3 years with two 1-year renewals; and WHEREAS, both parties wish to extend and amend the Concessionaire Agreement on the terms and conditions set forth below; and WHEREAS, with the recommendation of the Tourist Development Council, the Collier County Board of County Commissioners has reviewed and approved this extension and amendment of the Concessionaire Agreement and specifically finds that doing so promotes tourism. WITNESSETH: NOW, THEREFORE, in consideration of the promises and covenants contained herein, and other good and valuable consideration exchanged amongst the parties, the parties agree as follows: 1. All of the above RECITALS are true and correct and are hereby expressly incorporated herein by reference as if set forth fully below. 2. The Term of the Concessionaire Agreement is hereby extended for an additional five years. Accordingly, Pickleball Pro Shop will provide concession services and comprehensive management at East Naples Community Park for an additional five years following the expiration of the current Agreement (October 24, 2017 — October 24, 2027). There is no right to renew by either party. 3. The provisions of Paragraph 2 of the Concessionaire Agreement are hereby amended as follows: STATEMENT OF WORK. The County hereby grants to the Concessionaire,and the Concessionaire hereby accepts from the County, the privilege to provide concession services and comprehensive management at East Naples Community Park (ENCP), located at 3500 Thomasson Drive, Naples, FL 34112 in conformance with the purposes and for the periods stated herein and subject to all terms and conditions O5.COA.01260/01498053/I j Words Underlined are added;Words struckThrough are deleted. Page 1 of 4 Page 1902 of 4908 1 6F2 hereinafter set forth. It is not permissible for oth: '- • • entities to utilize the Agreement. 4, Paragraph 23 of the Sponsorship Agreement is hereby amended as follows: USES, The Concessionaire has exclusive rights to the current Pickleball facilities and the modular concession at ENCP, however nothing in this Agreement shall preclude the County from using the Pickleball facilities, public areas for public and civic purposes as deemed necessary, with advance written notice to the Concessionaire. The Concessionaire is authorized to conduct the following type of business and to provide the following services, and only such business and services, at ENCP the approved COA and as set forth below: 5.Paragraph 28 of the Sponsorship Agreement is amended as follows: HOURS OF OPERATION. During the term of this Agreement programs and concession will be adequately staffed on days and times approved by the Parks and Recreation Director or his/her designee. Days and hours will be posted and any changes from posted hours will be communicated within seven (7) days of the change. The operation should continue throughout the year including applicable holidays. The highest volume of activity and sales may occur during the seasonal / tourist months of November— April; it is the expectation of the awarded concessionaire that service will operate year-round except when conflicting with the US Open Pickleball Agreement or other Pickleball event that the CVB Sports Marketing team may schedule. 6.Paragraph 29 of the Sponsorship Agreement is amended as follows: PUBLIC USE OF THE FACILITIES. The Concessionaire shall be responsible to the Director of Parks and Recreation Division for the satisfactory and courteous operation of the programs and concessions at ENCP. Courts must be made available to the public every day from 12:00 PM—5:00 PM year-round except when tournaments are scheduled. However, this does not preclude the Concessionaire from scheduling promotional events, which might temporarily limit access to the event site, subject to the prior written approval for each event, on a case-by-case basis,by the Director of Parks and Recreation, or Designee. 7, Paragraph 52 is added as follows: Tournament & Academy Programming. The Concessionaire will provide three tournaments per year at East Naples Community Park during each fiscal year. Past examples of tournaments include: 05-C0A-01260/149805311 j Words Underlined are added; Words S4tek—TIfettgh are deleted. Page 2 of 4 Page 1903 of 4908 16F2 a. Florida State Pickleball Championships; b. Winter Classic; c. Southern Tropics. The Concessionaire shall lease the East Naples Community Park directly from the Collier County Parks and Recreation Division for tournament play and will comply with all then-current County requirements for the hosting of an event of this size including but not limited to when necessary:providing insurance,crowd control, parking, security, EMS, restroom facilities, waste removal, portable generators, showers, all deposits and full payments required prior to each event and other event operation expenses. The Concessionaire shall provide written reports to the Convention & Visitors Bureau (CVB) and Tourist Development Council (TDC) regarding attendance, sales, and overall impact on County visitation at each event within 60 days following the event. Such reports will be jointly communicated publicly by CVB staff and the Concessionaire following the completion of each tournament. The Concessionaire may apply for additional promotional funds from the CVB if these events can demonstrate that they promote tourism by attracting overnight visitors to Collier County and achieving regional, national, or international exposure. 8, Paragraph 53 is added as follows: Tournament Marketing. The Concessionaire has the responsibility to actively market the destination and programs at the ENCP location and Naples in general, The Naples, Marco Island, Everglades Convention & Visitors Bureau (CVB) may provide a 1:1 match for marketing programs and literature, not to exceed $20,000 per fiscal year subject to a recommendation by the Tourist Development Council and approval by the Board of County Commissioners. Proof of advertising eligible for matching funds, such as written marketing programs and literature, should be reviewed by the CVB Director, or Designee,prior to distribution to the public and must be submitted two (2)weeks prior to the actual advertising date. In addition to matching funding on marketing programs, Collier County shall assist with marketing of Concessionaire's events in some or all of the following: i. Year-round promotion on Collier County Convention and Visitors Bureau sports marketing website, Facebook, and Twitter channels; ii. Assistance with hotel logistics including gathering of rates and banquet needs; iii. On site visitor information table to assist with local attractions and suggestions for out of town visitors during tournament programs; iv. Assistance with Public Relations and Media Outreach; v. Explore providing signage to promote the Pickleball Academy and Pro Shop at ENCP. 05-CCA-012(0/1498053/11 Words Underlined are added; Words Struck-Through are deleted. Page3of4 Page 1904 of 4908 16F2 9. Excepting the above, all other terms and conditions of the Concessionaire Agreement continue in full force and effect. IN WITNESS WHEREOF,Pickleball Pro Shops and Collier County have respectively, by an authorized person or agent, hereunder set their hands and seals on the date and year first above written. ATTES :, r,,BOARD OF '410.i'.-- _ •MMISSIONERS CR,S1 1ZIfInL, Clerk COLIE • PLO •A B 411-_ 61 L.Y lerk W' iam L. Mc Daniel,Jr., Chat• -Ian n t.t t alt.; signat `OflI u Pickleball Enterprises, LLC t BY //It, / Jim ••w g I Approved as to form and legality: 9 eatAw ' / , . olleen M. Greene ' Assistant County Attorney Item# 1(cf&' 1 Agenda 1008x'1)O1Cate Date ZU -S/C? Reed 05•COA•01260l1498053/1] DepUty(ii@ikWordsUnderlinedareadded;Words Strutek Trough are deleted. Page4of4 Page 1905 of 4908 DocuSign Envelope ID: FACEF1A3-36F0-432E-9C8F-8C2A69EB0F1B 12/10/2020 DocuSign Envelope ID: B494EECD-2343-45D7-AAB2-D0A47F4EF99C Page 1906 of 4908 DocuSign Envelope ID: FACEF1A3-36F0-432E-9C8F-8C2A69EB0F1B 12/10/2020 Executive Director James Ludwig 12/10/2020 Sally Ashkar DocuSign Envelope ID: B494EECD-2343-45D7-AAB2-D0A47F4EF99C Robert Strommen Page 1907 of 4908 DocuSign Envelope ID: C0D2CFC8-F8F5-4587-88DC-43FE15D8FDAE11/3/2022Page 1908 of 4908 DocuSign Envelope ID: C0D2CFC8-F8F5-4587-88DC-43FE15D8FDAEManaging Partner11/3/2022Robert Strommen11/3/2022TomaskoRonaldPage 1909 of 4908