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HomeMy WebLinkAboutProposed Improvements to Huntington Beach Sports Complex - P oa��T�NGTp�, 2000 Main Street, 4"4 Huntington Beach,CA 92648 City of Huntington Beach APPROVED 7-0 '11Foe4;� FOR FURTHER REVIEW — `- couNri�P`.' ITEM TO RETURN TO CITY COUNCIL ON 8/18/26 File #: 26-584 MEETING DATE: 7/7/2026 Subject: Study Session: Proposed Improvements to Huntington Beach Sports Complex Attachments: 1. PowerPoint Presentation City of Huntington Beach Page 1 of 1 Printed on 7/1/2026 powered by LegistarT"" 19 City Council/Public Financing ACTION AGENDA July 7, 2026 Authority COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS Councilman Williams appointed Rosalind Price to Community and Library Services Commission; Council Woman Van Der Mark appointed Jeanne Paris to Community and Library Services Commission AB 1234 REPORTING - None OPENNESS IN NEGOTIATION DISCLOSURES Councilman Williams, Council Woman Van Der Mark, Councilman Gruel spoke to Police Officers Association (POA); Councilman Burns met with Huntington Beach Firefighters' Association (HBFA) President CITY MANAGER'S REPORT 11. 26-584 Study Session: Proposed Improvements to Huntington Beach Sports Complex Community and Library Services Director Ashley Wysocki presented information regarding improvements to the Huntington Beach Sports Complex. City Council voted to send this item back to the Finance Commission and the subcommittee for further review. Staff to provide information needed and Council continues to review project as needed. Item to return to August 18th City Council meeting. Approved 7-0 CONSENT CALENDAR(Items 12-17) City Clerk 12. 26-565 Approved and Adopted Minutes Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes of June 16, 2026. Approved 7-0 Page 6 of 7 o J Q -5 (Ito C-) wo d V N O = W Uix W CO Oc L � o C9 it' zz 2 U COMMUNtTV DRIVEN. FUTURE FOCUSED. SPORTS COMPLEX CHALLENGES WHERE 0,� HISTORIC FACILITY USAGE I/V E STARTED City of HB historically budgeted/staffed the Sports Complex operation to support 30-35%facility usage. Prior to 2021,the City of Huntington Beach operated the HB Sports Complex under the Community&Library Services Department. U. 2. . HISTORIC NET REVENUE "2 In 2018/19,the Sports Complex generated a net revenue of$17,237. In 2021,the City issued an RFP seeking an operating team,to assist in expanding participation, improving the customer experience, increasing field utilization,and positioning the complex as a premier destination for youth and amateur sports. MULTIPLE PARK MANAGEMENT PROVIDERS �� Landscape,concessions,field maintenance,building maintenance, events/community programming,etc.were all managed by seperate departments or third-party service providers. V AGING INFRASTRUCTURE/DEFERRED MAINTENANCE Capital infrastructure investment had largely been deferred for 15 years. HUNTINGTON CENTRAL PARK SPORTS COMPLEX 2 COMMUNITY DRIVEN. FUTURE rn!'t icFn HIGHLIGHTS WHERE sms. 0 11 PARKING REVENUE D AY City parking revenue has increased from$110,411 in FY 21/22 to$726,126 in FY 24/25. A LONG-TERM PARTNERSHIP FACILITY USAGE HBSC PARTNERS & CITY OF HUNTINGTON BEACH uz The Complex has increased from 35%usage($17,237 in City net revenue)to 95%usage,producing$218,887 in City revenue share in 2025. HBSC has transformed the Huntington Beach Sports Complex into a more active, accessible, and financially sustainable community asset—serving more users, creating more opportunities,and generating greater resources for future investment. UJ CAPITAL IMPROVEMENTS HBSC Partners has invested$650K in park infrastructure,including enclosed dugouts on all fields,flexible fencing to facilitate larger events,and installing a new sports turf field. COMMUNITY OUTREACH 04 Launched a community outreach program, in November 2025,which has provided over 850 of our local youth with camps,clinics,and$16,000 in GuUNCIL ACTION scholarships. On 9/7/21, City Council unanamously approved an Operational/Management Agreement between the City of Huntington 05 EXPANDED PROGRAMMING Beach and HBSC Partners, LLC,for Facility Management and Operation The Sports Complex has broadened program offerings to include more camps, Services at the Huntington Central Park Sports Complex sports training,flag football, lacrosse,volleyball,and soccer programming. HUNTINGTON CENTRAL PARK SPORTS COMPLEX 3 COMMUNITY DRIVEN. FUTURE FOCUSED. WHERE WE ARE TODAY ONGOING CHALLENGES As the complex serves nearly three times the number of users and participation continues to increase,strategic improvements are necessary to meet both current needs and future demand. i.....1 .1. 2x - 3x $ 1 . 1M ,... 17M LANDSCAPE MAINTENANCE INCREASE LED LIGHTING UPGRADES GALLONS OF WATER CONSUMED ANNUALLY The current landscape maintenance contract will expire in FY The City Capital Improvement Pan contemplates a five phase 23 acres or natural grass Welds consume an estimated 1/M 27/28 and is projected to increase 2-3 times in subsequent years LED lighting retrofit project. Two of five phases have yet to be gallons of water annually. funded/completed. IIIM DEFERRED INFRASTRUCTURE REPAIRS BATTING CAGE CLOSURE LIMITATIONS ON FIELD USE Public Works recently replaced a failed water pump at the site and The original batting cages have been closed due to safety concerns Flag Football,Soccer,Lacrosse,amongst other sports require a the 20+year old irrigation system components continue to since July 2024. The replacement of the existing cages is grass/turf surface. The baseball/softball infield surfaces limit the experience failures. A complete irrigation system replacement is estimated to cost$330,000. However,training modalities have flexibility and field use for other purposes. estimated at$5.2M. evolved and this presents an opportunity to build a modernized, state-of-the-art training facility. HUNTINGTON CENTRAL PARK SPORTS COMPLEX COMMUNITY DRIVEN. FUTURE FOCUSED. HIGHLIGHTS THE NEXT 1... U T I O N O RISE TRAINING CENTER Evoh A training facility that supports modern training modalities for local athletes and provides broader community wellness training. BUILDING THE FUTURE OF COMPETITION AND () MULTIPURPOSE SPORTS COMPLEX COMMUNITY v� Maximize the flexibility,usability,and availability of fields for various sports and events. Our vision is to create a community hub that benefits everyone—leveraging capital investment to deliver new infrastructure, expanding recreational opportunities for our residents,and generating recurring revenue that supports the future of the Huntington Beach Sports Complex. BRAND PRESENCE Continued expansion with partners that are looking to enhance community experiences,support youth development,and invest in the future of one of Southern California's most active sports destinations. HUNTINGTON CENTRAL PARK SPORTS COMPLEX To 06 o oo 0 t. Pill%1 CL = d m w t N ~ a a EW c : Gov `° n �O Wo0 ,^ 4' ;g : U HID W ~ O W C N Q — C W u t > Zr ° o S Ns- Q' W > a "IL; v All � E s W w L " an Y QQ 0 Cr) Z G O C 7 = J E c O a W v 0 0 O ♦ N "- C L N 7 w t lc 2 F— a N ;L v D Z 2 r.4 L^ u cu _ C . d 3 p C 'n O T O a) °' 2O E -p O c '•V 'E 2N 3 Ud W�•__E a; n E 0 u • c v• .o > a ill " _ �p L N B N w E a W 1:-% 0 C .= a v v E �a o .o Q B N 6 1 x Z U NM n' 4) p O W > c w 3 E O tp O V N O .D N E I ' ' 0` O Q oo N ae E •RE Tm V • v � m S 0 O E ec0 a 0- E vLI > Q Z E m N A N v o d ~-- a " v c Z c E WQ 5 ' ; .z O C4 m u .C'33 33 E p' C ' E 0 o i- Z v — ci W ... . W J Z It L •N6O. MOM L oaW O outco a f► c 0 c >. ""° a CI W ° c Cl) o _ L l� E p • Z H v x Xd ' v O W A c a W c -I C ° r g o Z ' l ' " � oCC z0. > SUJ C, •-• -0 .0 .0 LU I-- .s. � Z a, m7E0 z IP cad " C W N O. C Z Im.mN p Z O = U COMMUNITY DRIVEN. FUTURE FOCUSED. ILIIIKo # / ' - .0I1W-, 416 r 0 r A , .J . ite . • OA OA / '' ON J - . iii%/ Ill .4,,././/, . .: Ivor, ,c....-.. J. r TRAINING CENTER FLOORPLAN HUNTINGTON CENTRAL PARK SPORTS COMPLEX COMMUNITY DRIVEN. FUTURE FOCUSED. illif •-ir . 6 -/I- .. "1:? . \ . ,, :: .1 ,-- 1. I .. \- . ‘....I.,4: ELEIKO ELEIKO .,._ WWI_ TRAINING CENTER RENDERINGS HUNTINGTON CENTRAL PARK SPORTS COMPLEX ~ m > O n, � o W c N N ce >r v u 11.;O o 70 a w c } c p ea m• '0 ° c al v '° c :0.1: U a' w .0- Z 3 v v E c — O N-0 a! o _ C c N _O s N "» c _ • a F- 4 -° c n '-a r 0 tn. u F- v m > o C Q U) '" c -A c) au op W O > E a c v au v U O a N _v E , v ✓ � r- Ep :E. v D wy c. E Er: A c a Z c ._ ✓ W > v ° a o 4.. v >p u a °' c = c N L o r w E c c Cr) z m 'O N a v •GO > m v 4 7 c a • Z., W orL P% $ VN, CU O m u E c c ler .4-::• al N ♦., vi V al J V 3 t _> > T_x N � La 4, a Y aJ CO ,. Ti Z a N � a c o CI w 22 p G• a d uai u a > m O • N cle 4 ,c...1.. m G0. tl) o m L a N m vi 6. N U X11 }I- N ' 10 V a c w 4.1 c EP- J .Q o y . c x m y m ro O- Z. A cus- o L W o J DII oH W D p ~ v V ._ � as � _ c _ s � �� � Z v, c a 5 >2 4, m < a 3 O OWNS U O a z x LLI VI O J v + w c0 1i• ;sc, aA U L cc E cyl 05 C p p H .c co y w 0 O c a _, Z Ere W O 3 O ~ di CC o z O a • U E c Q' W v u m w ~ W Z WQ jiii f- Z 1 CO if o z m O x U COMMUNITY DRIVEN. FUTURE FOCUSED. WHEN ONE FIELD BECAME SPORTS TURF HBSC's conversion of a single field to artificial turf served as a proof of concept,demonstrating increased utilization, improved field reliability,expanded programming opportunities,and stronger revenue potential. 4 . 3 5 x ..., 1 . 8 fin . . REVENUE MULTIPLE GALLONS SAVED : , ,.. _. .___ •. Field F:$27,420-➢$119,340 annually Tens of millions of gallons across the full complex , MULTIPURPOSE FIELD LOW MAINTENANCE + ; ► , - _AS ` ....MA=7••••; _ , J J,,mart - L. /. _ _ _ Multiple field configurations provide soccer,baseball, By eliminating fertilizer,pesticides,weekly landscaping . .._ and football overlays,maximizing the flexibility and maintenance,and semi-annual reseeding,this field has ‹- utilization of the field.As the most requested and transitioned to a low-maintenance system requiring — — ._._, heavily used field within the complex,it demonstrates only routine brushing and leveling to maintain optimal the exceptional value of a multi-purpose playing performance. surface that can accommodate a wide range of sports . and community activities. • HUNTINGTON CENTRAL PARK SPORTS COMPLEX 13 -. a C E c 3 O j▪ ,0 N o v Ci CO — D v D Vi CI) ° r o l- 'n N CU c m .O Cl . N U a 0 CU v N i ,Q WE a U o a v a C Z C 72 E Y cu Q l'_' To u C m N Z o 0 a -o a r LLII— _c • v a CU ~ + E _0 O y, z o `° = a '^ Q o o fl or• '6 v p + -I w o v 0 N J r -o ro z. a s C +� O O ui O w O O O v a .E L W L d0 Q N - Q m L a O.0 Cu z ° —u u Z 7 •c 0 Q ' W a CO J -10 ca '°>- o do '0- C H c in t J Cr' co m t O -O o a III W rs v J ` O_p O O — > = w MIMI .. E o .� I p' J o a.0= O w c .E ° o O Eo LL D_ al,_ ` a 3 m Q' o m -o LU E N p H Cr, a s a Ce a N ro ,- m m moo a 0, co Wi >' cu IX ›. I U O a Z O ul a . LI moos O o o a Ci O L to bum. Z V • p c w c .c- IQ Q E C x1.01 W c a V 0 c d O l— a O � a v c • O 4. a u a a v 0 LL, -O O ', E +J co CC la V cam '° o a cc W p oo «' E a u Z -, _ a h (7 • a E o co) Li.. mem v Y x LU = w Y Q a ce Z v m 0 0- 94 :;..9-1-U w v L4S0.E a +-' J U O UJ c oo c E z o Z L 0 E W C t U W :� o O 0 mil0 o LU a.E a C F- z z D 0 I v COMMUNITY DRIVEN. FUTURE FOCUSEP WHAT ARE THE FINANCIAL TERMS & CONDITIONS The following terms and conditions are critical to supporting the proposed capital improvements, generating an appropriate return on investment(ROI),and delivering long-term value to both HBSC and the City of Huntington Beach. MANAGEMENT e.GRFEMENT TERM (20 YEARS) A longer operating term provides the financial certainty needed to recover project costs and ensure sustained benefits for both HBSC and the City of Huntington Beach CITY REVENUE SHARE(15%) City revenue share will be fixed to ensure ROI and cashflow for both HBSC and the City of Huntington Beach. EVENT RENTAL RATES INCREASE($595 PER FIELD/DAY\ Rental rates for tournaments/events will increase to reflect the premium venue profile. ANNUAL PARKING REVENUE CONTRIBUTION: Years 1-5($900K),Years 6-10($800K),Years 11-15($700K),Years 16-20 ($500K) City to contribute Sports Complex parking revenue toward the capital improvement debt service.The contribution will decrease over the term ot the agreement and expire once debt service is paid. OPERATIONS AND MAINTENANCE EXPENSES HBSC will include all O&M expenses for the training center and sports turf(including repair/replacement) under it's management agreement responsibilities. HUNTINGTON CENTRAL PARK SPORTS COMPLEX COMMUNITY DRIVFN. FUTURE FOCUSED. WHAT IS THE BOTTOM LINE RISE TRAINING CENTER SPORTS TURF CONVERSION LED LIGHTING RETROFIT $3.3M $13.8M $1 .1M TOTAL CAPITAL INVESTMENT TOTAL CAPITAL INVESTMENT TOTAL CAPITAL INVESTMENT $1.8M in initial capital investment $8M initial capital investment $1.1M one-time capital investment $75K/Yr.capital replacement $50K capital replacement `Includes 25 year warranty $4.8M full replacement(Year 10) 24/25 Financials (City Income): Proposed Project Proforma* (City Income): Revenue Share($1,291,464 x 16%) $206,634 Parking Revenue $726,126 Revenue Share($2,440,000 x 15%) $366,000 Annual Operating Income $932,760 Parking Revenue(Annualized @$1M Gross/yr) $275,000 Water Savings $80,000 Annual Approximate City Costs: Landscape Maintenance Savings $385,000 Water $88,000 Annual Operating Income $1,076,000 Field Maintenance $130,000 Electricity $100,000 Annual City Costs Methane Monitoring $231,000 Electricity $100,000 Methane Monitoring $231,000 Projected Capital Improvement Costs(annualized over 20 years): LED Lighting Conversion($1,100,000) $55,000 Projected Capital Improvement Costs: $0 Batting Cage Replacement($330,000) $16,500 Deferred Maintenance:Irrigation($5,200,000) $260,000 ANNUALIZED NET INCOME $745,000 ANNUALIZED NET INCOME $52,260 *Estimated based on average of 20 year projections HUNTINGTON CENTRAL PARK SPORTS COMPLEX 13 a.4Trai ► ONE I 11.11Ywit? le° I HSI VIISION • SPORTS COMPLEX COMMUNITY DRIVEN. FUTURE FOCUSED. 4 BUILD A PREMIER SPORTS FINANCIAL SUSTAINABILITY OPERATIONAL EFFICIENCY ADDRESS DEFERRED DESTINATION MAINTENANCE NEEDS With a training center,multipurpose utility Create a financially sustainable community Maximize the use of resources while Reduce accumulated infrastructure backlog, fields,and upgraded lighting,the HB Sports asset that can support ongoing operations, minimizing operational costs,allowing the restore facility to a state of good repair,and Complex will become a preferred destination facility improvements,and expanded Sports Complex and the City of Huntington implement a proactive maintenance approach for youth sports,athletic development,and recreational opportunities without placing an Beach to deliver exceptional community that preserves asset value and improves community recreation in Southern California. undue burden on taxpayers. value. safety. IMPOMINIP rov a ty Council with an amended management agreement, between the City of HB and HBSC Partners, LLC to include 1)the construction of a new training .46 center, 2) conversion of existing fields to sports turf, and 3) completion of the LED lighting retrofit project under price and terms mutually agreeable to the parties. HUNTINGTON CENTRAL PARK SPORTS COMPLEX - 20-YEAR LEASE EXTENSION SUMMARY 14 (Jo J cs a N >- 0 � = Ce 1 61 LL1 OQ. O Et LL V J Q � W CCI 1.11 O � I- o C7 it" Z Z Z � O Ici COMMUNITY DRIVEN. FUTURE FOCUSED. SPORTS COMPLEX CHALLENGES WHERE HISTORIC FACILITY USAGE VV E STARTED 0 ri City of HB historically budgeted/staffed the Sports Complex operation to support 30-35%facility usage. Prior to 2021,the City of Huntington Beach operated the HB Sports Complex under the Community&Library Services Department. HISTORIC NET REVENUE �� In 2018/19,the Sports Complex generated a net revenue of$17,237. In 2021,the City issued an RFP seeking an operating team,to assist in expanding What was the r�ss� participation, improving the customer experience, increasing field utilization, and g positioning the complex as a premier destination for youth and amateur sports. MULTIPLE PARK MANAGEMENT PROVIDERS �� Landscape,concessions,field maintenance, building maintenance, events/community programming,etc.were all managed by seperate departments or third-party service providers. r AGING INFRASTRUCTURE/DEFERRED MAINTENANCE Capital infrastructure investment had largely been deferred for 15 years. HUNTINGTON CENTRAL PARK SPORTS COMPLEX 2 COMMUNITY DRIVEN. FUTURE FOCUSED. HIGHLIGHTS WHERE PARKING REVENUE Ii (F 4 �. TODAY 0`' City parking revenue has increased from$110,411 in FY 21/22 to$726,126 in FY 24/25. A LONG-TERM PARTNERSHIP HBSC PARTNERS & CITY OF HUNTINGTON BEACH I U2 FACILITY USAGE The Complex has increased from 35%usage($17,237 in City net revenue)to 95%usage, producing$218,887 in City revenue share in 2025. HBSC has transformed the Huntington Beach Sports Complex into a more active, 88k water, 130k field maintenance, 100k electricity, 231k, methane accessible,and financially sustainable community asset—serving more users, monitor, $39.6k restrooms Total Expenses: $588,600 creating more opportunities,and generating greater resources for future -369,713 investment. 03 CAPITAL IMPROVEMENTS HBSC Partners has invested$650K in park infrastructure, including enclosed dugouts on all fields,flexible fencing to facilitate larger events,and installing a new sports turf field. Who did do you hire for the turf? Permitted? COMMUNITY OUTREACH 04 Launched a community outreach program,in November 2025,which has provided over 850 of our local youth with camps,clinics,and$16,000 in GuuNCIL ACTION scholarships. On 9/7/21,City Council unanamously approved an Operational/Management Agreement between the City of Huntington 05 EXPANDED PROGRAMMING Beach and HBSC Partners, LLC,for Facility Management and Operation Services at the Huntington Central Park Sports Complex The Sports Complex has broadened program offerings to include more camps, sports training,flag football, lacrosse,volleyball,and soccer programming. HUNTINGTON CENTRAL PARK SPORTS COMPLEX 3 COMMUNITY DRIVEN. FUTURE FOCUSED. WHERE WE ARE TODAY ONGOING CHALLENGES As the complex serves nearly three times the number of users and participation continues to increase, strategic improvements are necessary to meet both current needs and future demand. 'All in $1,877675 -38M to -17M � 1 Based upon what? 7x - 3x 1 . 1M 7M LANDSCAPE MAINTENANCE INCREASE LED LIGHTING UPGRADES GALLONS OF WATER CONSUMED ANNUALLY The current landscape maintenance contract will expire in FY The City Capital Improvement Plan contemplates a tive phase 23 acres of naturai grass tielas consume an estimated 1/M 27/28 and is projected to increase 2-3 times in subsequent years LED lighting retrofit project. Two of five phases have yet to be gallons of water annually. funded/completed. Merchants weigh in on this? Got to competitive RFP iWhat methodology? - 15.4 acres of grass? Revenue loss during shut down? DEFERRED INFRASTRUCTURE REPAIRS BATTING CAGE CLOSURE LIMITATIONS ON FIELD USE Public Works recently replaced a failed water pump at the site and The original batting cages have been closed due to safety concerns Flag Football,Soccer,Lacrosse,amongst other sports require a the 20+year old irrigation system components continue to since July 2024. The replacement of the existing cages is grass/turf surface. The baseball/softball infield surfaces limit the experience failures. A complete irrigation system replacement is estimated to cost$330,000. However,training modalities have flexibility and field use for other purposes. estimated at$5.2M. evolved and this presents an opportunity to build a modernized, state-of-the-art training facility. HUNTINGTON CENTRAL PARK SPORTS COMPLEX COMMUNITY DP", 'FM rr lrr ror rnrr rcrr HIGHLIGHTS THE NEXT E\O L U T I O N 01 RISE TRAINING CENTER A training facility that supports modern training modalities for local athletes and provides broader community wellness training. BUILDING THE FUTURE OF COMPETITION AND COMMUNITY 02 MULTIPURPOSE SPORTS COMPLEX Maximize the flexibility, usability,and availability of fields for various sports and events. Our vision is to create a community hub that benefits everyone—leveraging capital investment to deliver new infrastructure,expanding recreational r opportunities for our residents,and generating recurring revenue that supports the future of the Huntington Beach Sports Complex. BRAND PRESENCE Continued expansion with partners that are looking to enhance community experiences,support youth development,and invest in the future of one of Southern California's most active sports destinations. HUNTINGTON CENTRAL PARK SPORTS COMPLEX 5 tUbaR,2 � R a 11111 mfillX1 °I b > - _ a \ \ \\\ /$ # s m ` 3 @ - � { ( 2 & ' { _ 8 \ z a � -I ( 27G cu t ` / \ il = ce c. \ / \ \ O / /} q O ■ * E \ Qa ) / & § E 2 z Ce \ C g._ - 8 • - \ LLI .-E• \ o = • ) a » limn _• \ ) ) \ O . 411. 2 o w � � Z � \ \ o � �D cu \ � \ | I � \ O « j & { \ { b / Ee tE { [ < K { ~ / � ® S 0 a e � E LLJE m 111111 • \ S n . � . \ -' Z - & O O — / \ \sEa o I } \ O — co III 2 O o 2 _ U) / § / $ / 2 f 4 - $ c w ~ O. \ U � � � 0 2 P ' / \ 0 0. .... _ \\ � § Q � ; c z 2g Z \ w \ « \ \ \/ / 2 \ ILI / z = c 2 2 cc � k _ Q COMMUNITY DRIVEN. FUTURE FOCUSED. it TIP filitA, it - -'5- *- . ...4: • 1. 111 TRAINING CENTER FLOORPLAN HUNTINGTON CENTRAL PARK SPORTS COMPLEX COMMUNITY DRIVEN. FUTURE FOCUSED. Illill -- :: ; .,,. -mo1.—,_....:,„:::. 1 II OP ' -....' ij ,I1-,r „1. i-N. oil 'r • 41 4 I ELEIKO ELEIKO . / ....-1NEA.. TRAINING CENTER RENDERINGS HUNTINGTON CENTRAL PARK SPORTS COMPLEX Ln >. 0 co o Y c o v o a O 7 .m - c > } c• _ '- c E F a y vv ?.- g; co v v vl Z 3 a, u E C. — v a, Z Li c O _ N > � � � a l— m'^a ° c 0 ((1 ` ' u D af+ 7i. O pU) c >o L :' aCZ0.,' WO : : : Uxvaa,UatN H W N v — d O D Ec N O 7 a Z C• . roc E y W > Ti, ° -0 O Or > N -O ? of U O L. al Z `0 m w E a L O W `" 7 E c a, O > O N •_ O 7 w o W v L v '" N G io > E � c -a +. G v N 6! 7 L ' a 41 = 1--, O L D .O C X C ` +.. G Y a p L- 3 T Z O 0 0 WN f:' CU 0 0 I.f. O 0 C v 7 O a a � sv > m v v - v a• a , a a v E a II I E ° H a a w° v J o o c of a • x CO v C • a w c v o za o N W N o O J Lll oiI LL aw _ = m � Z x O '^ v Illr. Q o• o _• m a a Um al z al 2, Imwm re _ U Qi a . Q 0 j X J O O .= o d O � , -2 :.,-.,..7. 0 v o c a V o• -C u o o co L1J (n Ol C a E 0 ... .c C .v c O I-. O i V) ro d 41.. pW Z E CO O ° =z. 14 W W O• 3 O ~ a) ii ; FE ZOa E U J v z vi u.1 W 0 E W Z U a v r p 2 O G W Q v .o H IL U ° aw z O = U COMMUNITY DRIVEN. FUTURE FOCUSED. WHEN ONE FIELD BECAME SPORTS TURF HBSC's conversion of a single field to artificial turf served as a proof of concept, demonstrating increased utilization, improved field reliability, expanded programming opportunities, and stronger revenue potential. 4. 35x 1 . 8 M REVENUE MULTIPLE GALLONS SAVED Field F:$27,420-4 5119,340 annually Tens of millions of gallons across the full complex MULTIPURPOSE FIELD LOW MAINTENANCE Multiple field configurations provide soccer,baseball, By eliminating fertilizer,pesticides,weekly landscaping : . • ' _ `: - and football overlays,maximizing the flexibility and maintenance,and semi-annual reseeding,this field has utilization of the field.As the most requested and _ q transitioned to aloes-maintenance system requiring --,�• r — --_ _ heavily used field within the complex,it demonstrates only routine brushing and leveling to maintain optimal ii_ , the exceptional value of a multi-purpose playing performance. • surface that can accommodate a wide range of sports and community activities. BOOM 11016, • • HUNTINGTON CENTRAL PARK SPORTS COMPLEX COMMUNITY DRIVEN. FUTURE FOCUSED. THE NEXT EVOLUTION All in lighting $1 ,877,675 _ $40k savings/yr = — 46+ years ROI? LED LIGHTING RETROFIT In addition to superior sustainability and performance, converting the sports complex to LED lighting delivers a mix of operational,financial, and user-experience benefits. There is an estimated 40% reduction in KW hours. 2 3 REDUCED ENERGY COST BETTER FIELD VISIBILITY AND SAFETY LOWER MAINTENANCE COST 70%reduction in electricity consumption from traditional Brighter more uniform light distribution reduces LED lights last 50,000+hours in compared to 6,000 lamp sports field lighting. Instant on/off capability further shadows/glare,improves ball tracking,and increases safety hours for traditional metal halide bulbs. This results in increases scheduling flexibility and energy control. for athletes and officials. fewer lift rentals,bulb replacements,and operational downtime. STATUS S Through it's Capital Improvement Planning process the City has completed two(of five) phases of LED lighting retrofits. With Phase III,being approved in the 26/27 budget,two phases remain to be completed. HUNTINGTON CENTRAL PARK SPORTS COMPLEX COMMUNITY DRIVEN. FUTURE FOCUSED. WHAT ARE THE FINANCIAL TERMS & CONDITIONS The following terms and conditions are critical to supporting the proposed capital improvements, generating an appropriate return on investment(RO1), and delivering long-term value to both HBSC and the City of Huntington Beach. MANAGEMENT AGREEMENT TERM (20 YEARS\ A longer operating term provides the financial certainty needed to recover project costs and ensure sustained benefits for both HBSC and the City of Huntington Beach CITY REVENUE SHARE (15%) Down from 16% City revenue share will be fixed to ensure ROI and cashflow for both HBSC and the City of Huntington Beach. EVENT RENT1I. RATES INCREASE ($595 PER FIELD/DAY) Rental rates for tournaments/events will increase to reflect the premium venue profile. ANNUAL PARKING REVENUE CONTRIBUTION: Years 1-5($900K),Years 6-10($800K),Years 11-15($700K),Years 16-20($500K) City to contribute Sports Complex parking revenue toward the capital improvement debt service.The contribution will decrease over the term of the agreement and expire once debt service is paid. ^0FPATIONS AND MAINTENANCE EXPENSES HBSC will include all O&M expenses for the training center and sports turf(including repair/replacement) under it's management agreement responsibilities. HUNTINGTON CENTRAL PARK SPORTS COMPLEX 12 COMMUNITY DRIVEN. FUTURE FOCUSED. WHAT IS THE BOTTOM LINE RISE TRAINING CENTER SPORTS TURF CONVERSION LED LIGHTING RETROFIT $3.3M $13.8M $1 .IM TOTAL CAPITAL INVESTMENT TOTAL CAPITAL INVESTMENT TOTAL CAPITAL INVESTMENT $1.8M in initial capital investment $8M initial capital investment $1.1M one-time capital investment $75K/Yr.capital replacement $50K capital replacement `Includes 25 year warranty $4.8M full replacement(Year 10) 24/25 Financials (City_ Income): Proposed Project Proforma* (City Income): Revenue Share($1,291,464 x 16%) $206,634 Parking Revenue 5726,126 Revenue Share($2,440,000 x 15%) $366,000 Annual Operating Income $932,760 Parking Revenue(Annualized @$1M Gross/yr) 5275.000 Water Savings $80,000 Annual Approximate City Costs: Landscape Maintenance Savings $385,000 Water $88,000 Annual Operating Income $1,076,000 Field Maintenance $130,000 Income? Electricity $100,000 Annual City Costs Methane Monitoring $231,000 Electricity Not part of HBSC RFP or Agreement $100,000 Methane Monitoring $231,000 Projected Capital Improvement Costs(annualized over 20 years): LED Lighting Conversion($1,100,000) $55,000 Projected Capital Improvement Costs: $0 Batting Cage Replacement($330,000) $16,500 Deferred Maintenance:Irrigation($5,200,000) $260,000 ANNUALIZED NET INCOME $745,000 ANNUALIZED NET INCOME $52,260 *Estimated based on average of 20 year projections Text HUNTINGTON CENTRAL PARK SPORTS COMPLEX 13 ONE ,litiot7I-to„ ,1 I FIR VISION • SPORTS COMPLEX COMMUNITY DRIVEN. FUTURE FOCUSED. 4 BUILD A PREMIER SPORTS FINANCIAL SUSTAINABILITY OPERATIONAL EFFICIENCY ADDRESS DEFERRED DESTINATION MAINTENANCE NEEDS With a training center,multipurpose utility Create a financially sustainable community Maximize the use of resources while Reduce accumulated infrastructure backlog, fields,and upgraded lighting,the HB Sports asset that can support ongoing operations, minimizing operational costs,allowing the restore facility to a state of good repair,and Complex will become a preferred destination facility improvements,and expanded Sports Complex and the City of Huntington implement a proactive maintenance approach for youth sports,athletic development,and recreational opportunities without placing an Beach to deliver exceptional community that preserves asset value and improves community recreation in Southern California. undue burden on taxpayers. value. safety. r`rovi•e Council with an amended management agreement, between the City of HB and HBSC Partners, LLC to include 1)the construction of a new training center. 2)conversion of existing fields to sports turf, and 3)completion of the LED lighting retrofit project under price and terms mutually agreeable to the parties. HUNTINGTON CENTRAL PARK SPORTS COMPLEX - 20-YEAR LEASE EXTENSION SUMMARY 14