VAA may take over Mcdermont

Lindsay council considering contract tonight

The Lindsay City Council will consider today authorizing the city manager to negotiate and execute a contract with VAA, Inc. to operate and manage the Mcdermont Field House.

City Manager Bill Zigler said the contract will contain a provision for VAA, Inc. to purchase Mcdermont in the future at a price determined by the city in 2018.

Even though the Mcdermont Field House is an asset to the Lindsay community as it benefits individuals, children, youth, families, businesses and schools, Zigler noted that the City of Lindsay is not the best entity to operate and manage the field house.

He said city council previously directed staff to issue an RFP for the operations and management of Mcdermont. Staff issued the RFP and tracked and documented all related activities.

Despite outreach through various media and directly to companies/brokers in the recreation/athletic center management industry and the public, the city received only one response. To the city’s advantage, Zigler said the one company was qualified to perform the management and operations at the field house, prompting staff to continue through the RFP process after reviewing the company’s proposal.

Zigler said the company, VAA, Inc., is a local company owned by Alfredo Velasco, Deici Avila and Clint Ashcraft, who are currently employed at Mcdermont as its managers and director.

“Their experience and entrepreneurial spirit in addition to meeting the RFP requirements makes VAA, Inc. the ideal company to take over the operations and management of Mcdermont,” Zigler said, adding that the RFP reviewers and interview participants scored VAA, Inc. highly for its experience and likelihood to succeed.

The next step in the process, Zigler said, is to finalize a contract to start Jan. 1, 2018. The contract is expected to have a five-year term with optional five-year renewal periods.

Additionally, Zigler said VAA, Inc. would like to purchase Mcdermont from the city, which he said will support the city’s desire to turn its focus to other services and community needs. Part of the contracting process will include establishing a time frame for

appraising Mcdermont and its related assets and to establish a purchase price.

Zigler said the city will assign its service contracts related to Mcdermont to VAA, Inc. Additionally, VAA, Inc. is committed to making the transition as smooth as possible.

If council directs staff to not contract with VAA, Inc., Zigler said the city would start preparing to close Mcdermont on Dec. 31 of this year.

However, by contracting

with VAA, Inc. for operations and management of Mcdermont Field House, Zigler said the city stabilizes its General Fund as cost overruns at Mcdermont pulled resources away from the General Fund. The city will continue to provide property insurance since it will continue to own the building. The city will also continue to pay debt service (lease payments).

He noted that VAA, Inc. will pay lease payments based on annual

net revenue on a graduated scale. These revenues, Zigler said, will help provide for debt service, other recreation or general needs in the city.

In other matters council will:

Receive reports by council members.

Receive a LHS student report by Denise Macias.

Receive a staff report and activity summary by City Manager Bill Zigler.

Consider approving a treasurer’s report

for November 2017.

Consider approving an opposition letter to National Parks Service.

Consider approving an opposition letter to SB 415.

Consider adding an additional use to the Highway Commercial Zoning District.

Receive an informational item regarding changes in the hours of operation at the City Finance Department.

The council meeting starts at 6 p.m. today at Lindsay’s City Hall.