REPORT TO THE CITY COUNCIL March 8, 2018 FROM: WILMA QUAN-SCHECTER, City Manager Office of the Mayor & City Manager BY: BRUCE RUDD, Interim Assistant City Manager Office of the Mayor & City Manager SUBJECT ..Title Actions pertaining to improvements at Chukchansi Park funded by the Chukchansi Park Capital Reserve fund: 1. ***RESOLUTION - 60th amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $1,200,000 for non-structural capital improvements at Chukchansi Park (Requires 5 affirmative votes) (Subject to Mayor's veto) 2. Adopt a finding of Categorical Exemptions per staff determination, pursuant to Sections 15301, 15302, and 15303 of the California Environmental Quality Act Guidelines 3. Approve the use of up to $1,200,000 for non-structural capital improvements at Chukchansi Park consistent with the Third Amendment to the Amended and Restated Sublease Agreement between the City of Fresno and Fresno Baseball Club, LLC. ..Body RECOMMENDATION Approve the list of recommended capital improvements and repairs in accordance with Third Amendment to the Amended and restated Stadium Sublease Agreement between the City of Fresno and Fresno Baseball Club, LLC. EXECUTIVE SUMMARY On June 26, 2017, the Council approved Third Amendment to the Amended and restated Stadium Sublease Agreement between the City of Fresno and Fresno Baseball Club, LLC. which established a capital replacement/improvement fund that would be used to fund the cost of repairing and/or upgrading Chukchansi Stadium. In accordance with the amended lease, the City has met with the new ownership group who has identified an initial list of repairs/improvements that would either reduce the cost of operations or improve the overall fan experience. BACKGROUND On June 26, 2017, the Council unanimously approved the Third Amendment to the Amended and restated Stadium Sublease Agreement between the City of Fresno and Fresno Baseball Club, LLC. Included in this amendment is a requirement by the parties to fund a capital replacement account that would be used to cover the cost of replacing and/or upgrading Chukchansi Stadium. Pursuant to Section 8, subsection (a), Capital Improvement, the City has met with the new ownership group who has developed an initial list of capital improvements that could be completed within the next 2-3 months. These projects would either reduce operating expenses or improve the ability to better serve the public by increasing the number of opportunities in which food and beverages can be purchased. The recommended list of projects includes; * Creating an area in which attendees can congregate along the left field side field side of the ballpark * Replacement and existing heating ventilation and air conditioning controllers * Install a new beer line system and large portable concession stands * Minor painting of egress and ingress signage * Replacement of existing boiler (hot water) * Replacement and extension of existing netting system * Replacement of trash cans It should be noted that this list is not inclusive of other projects that were identified through previous assessments (e.g., turf/irrigation replacement, technology upgrades) that will need to occur in the next few years, but will require additional design and engineering work to be completed before these projects can actually begin. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Categorical Exemption set forth in California Environmental Quality Act (CEQA) Guidelines Sections 15301 (existing facilities), 15302 (replacement or reconstruction), and 15303 (new construction or conversion of small structures) which exempts the repair, maintenance, or minor alteration of existing structures or facilities, replacement or reconstruction of existing structures or facilities and construction and location of limited numbers of new, small facilities or structures. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented because this item does not include an award of a construction or services agreement. FISCAL IMPACT The Capital Reserve Account has a current balance of $5.25 million. Preliminary estimate for all the projects is $1.2 million. If this resolution is approved, the reserve account will have a balance of $4.05 million. Attachment: AAR No. 2017-165