REPORT TO COUNCIL
SUBJECT
Title
Approval of a Status Report on the Lease Agreement Between the City of Santa Clara and the Police Activities League (PAL) for the Operation of a BMX Track
Report
COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets
BACKGROUND
At its April 19, 2022 meeting, the City Council directed staff to provide a status report at the May 24, 2022 Council meeting on the following issues related to the lease agreement with PAL:
1. PAL's ability to comply with insurance requirements outlined in the lease agreements;
2. The willingness of USA BMX to continue to work with PAL in sanctioning racing activities;
3. The feasibility of the City assuming responsibility for BMX operations; and
4. The status of a fiscal audit proposed by PAL related to BMX operations.
The purpose of this report to Council is to provide the requested information.
DISCUSSION
1. Insurance
As of May 19, 2022, PAL is fully compliant with the insurance requirements outlined in the City Ground Lease Agreement. (The original ground lease and two amendments are attached as Attachments 1, 2 and 3.) As such, PAL is now able to resume BMX operations at the facility. It is anticipated that BMX programming will have resumed prior to the presentation of this report to City Council on May 24, 2022.
2. USA BMX
On May 11, 2022, staff received an email from USA BMX stating that they are no longer willing to work with the PAL Board and officially requested that the City of Santa Clara vote to turn the lease over to either USA BMX directly or the City's Park and Recreation Department so USA BMX could work directly with one of these two entities. In light of this statement by USA BMX, it is anticipated that the Santa Clara site will not be eligible for sanctioned events after May 24, 2022.
3. City staff assuming responsibility for BMX track
As staff evaluated the feasibility of assuming responsibility for BMX operations, several factors were taken into considerati...
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