RFP PR-23-297Addendum 2 Q&A.pdf

Department of Financial Management 411 West Ocean Boulevard, 6th Floor

Long Beach, CA 90802

(562) 570-6425

March 20, 2024

NOTICE TO PROPOSERS

ADDENDUM NO. 2

RFP No. PR-23-297 Tennis & Pickleball Contractor

This addendum changes and supersedes the language in the original RFP. Please acknowledge receipt of this addendum by signing and submitting with your proposals. Any proposer who fails to submit this addendum may be disqualified.

The City would like to remind Proposers that pursuant to Section 5.2.26 of the RFP, the City will not be responsible for or bound by any oral communication or any other information or contact that occurs outside the official communication process specified herein, unless confirmed in writing by the City Contact.

The City would like to make the following updates:

Through this addendum, the City shall clarify that the award from this RFP will include 1) a lease to operate and manage the Billie Jean King and El Dorado Tennis Centers (collectively:

Centers) and 2) a permit to conduct contract classes for the instruction of tennis and pickleball.

References to instruction in the RFP refer to classes available through the City of Long Beach’s Department of Parks, Recreation and Marine (Department).

The Awarded Contractor shall offer instruction in tennis and pickleball, through instructors certified by an accredited association, at the Centers and municipal court locations designated by the Department. Contract class locations may be found in the Spring 2024 Long Beach Parks, Recreation and Marine Recreation Connection (Recreation Connection).

https://longbeach.gov/park/recreation-programs/programs-and-classes/ Under the existing permit, the Contractor pays the City the greater of $750 a month or ten percent of monthly gross receipts. As consideration for the collection and processing of online registration on behalf of the Contractor, an administration and promotional charge of $2.00 per registered student is collected by the City. The current permit also provides for up to two (2) pages of advertising in the quarterly published Recreation Connection.

For the new permit, the terms, conditions, administration and promotional charge, and Recreation Connection advertising will be determined through negotiation. For the purpose of this RFP, the Proposer may assume the method of payment will remain either the greater of a negotiated amount or a percentage of monthly gross receipts. The administration and promotional charge may be periodically adjusted to recover the actual costs associated with contract class registrations and advertising.

As part of the response to the RFP, Proposers shall demonstrate that they have the skills and knowledge to conduct a contract class program, including administrative capabilities and https://longbeach.gov/park/recreation-programs/programs-and-classes/

Addendum # 1 RFP PR-23-268 experience to support the programs offered. The Awarded Contractor shall be responsible for all reports and obligations with respect to instructors.

Sections of the RFP are revised as follows:

• Summary is revised to read “The City of Long Beach, through its Parks, Recreation, and

Marine Department, seeks proposals from qualified and experienced tennis and pickleball concessionaires (Contractor) to operate, manage, and maintain the City’s two tennis and pickleball centers, and offer instruction at the two major tennis and pickleball centers and various municipal court locations in the City.”

• The first paragraph in Section 1.1 Project Summary is revised to read “The City of Long

Beach’s (City) Parks, Recreation, and Marine Department (PRM) is seeking proposals from qualified and experienced tennis and pickleball concessionaires (Contractors) to operate, program, and maintain the grounds and equipment. Ideally, the City is looking for a customer-focused Contractor who has the desire, expertise, and means to maintain an on-site presence and enhance the public’s use of the Billie Jean King (BJK) and El

Dorado (El Dorado) Tennis and Pickleball Centers (collectively: Centers). In addition, the Contractor will offer contract classes in tennis and pickleball at the City’s two tennis and pickleball centers and municipal court locations specified by the City.”

• Section 4.3 under Method of Approach, question 13 is revised to read “A separate permit will be issued to the Awarded Contractor to conduct classes in tennis and pickleball instruction at the Centers and municipal courts locations. Explain how your firm would approach operating a contract class program. Describe your proposed services, including private and group lessons, as well as youth and adult programs. What are your programmatic goals and objectives? What do you look for in an instructor?”

The questions and answers are as follows:

1. Q: My name is Garrett. I work for Dominator Sports in Utah. We manufacture rust-proof, all aluminum basketball, pickleball, and lighting products (dominatorhoop.com). I saw your bid for your upcoming pickleball courts and I was reaching out to see if we could offer you our products at a significant discount? Or, if you hire out the job and assign the builder to purchase the product, could I get access to the companies bidding on the job in order to offer them our products? Any information would be greatly appreciated!

A. RFP No. PR-23-297 is seeking proposals from qualified and experienced tennis and pickleball concessionaires to operate, manage, maintain, and offer instruction at the City of Long Beach’s (City) tennis & pickleball centers. Solicitations for products are not part of the scope of this RFP. Information regarding the Proposers who submitted proposals in response to this RFP may be requested through the City of Long Beach’s Public Records Request website at the following:

https://longbeachca.govqa.us/WEBAPP/_rs/(S(wmaja3gyroebxcbpmysql53j))/supporthom e.aspx

2. Q: Who is running the City programs right now and why is it open for bidding?

A: The current operator managing the Billie Jean King and El Dorado Tennis & Pickleball

Centers (Centers) is Bridge Enterprises, Inc. (Contractor). The Contractor assumed Lease

Agreement No. 28222 (Lease) from the previous operator, First Serve Tennis, Inc., on

November 1, 2021.

The City issued the RFP because the Lease is due to expire on December 31, 2024.

3. Q: What are the current terms of the contract?

A: The Lease began on April 1, 2003. On November 14, 2023, the Long Beach City Council approved an extension of the term of the Lease through December 31, 2024.

4. Q: What percentage does the current owner pays now to the City?

A: The current Contractor pays the higher of either a monthly rent derived from an adjusted annual minimum based on 80% of the prior three years' average or 10 percent (10%) of monthly gross receipts from court fees, food and beverage, taxable merchandise, and tournament fees.

5. Q: Do they pay electricity?

A: The City’s Lease with the current Contractor states the City will pay for electricity at the

Centers, as well as other utilities. The Contractor, however, may be responsible for paying a portion of the utilities under certain circumstances. The Awarded Contractor should expect to pay for phone and internet service. Other utilities will be decided through negotiation. See page 7 of the RFP for estimated electricity and gas costs.

6. Q: Are you allowed to run tournaments at the locations?

A: Yes, the Awarded Contractor will be allowed to run tournaments at the locations.

7. Q: Where are the tennis courts or facilities/ address located?

A: Please see page 5 of the RFP.

8. Q: What is the revenue for the last 5 years, profit?

A: See Exhibit A for revenue information. The City’s Lease with the current Contractor requires the higher of either a monthly rent based on an adjusted annual minimum based on 80% of the prior three years average or ten percent (10%) of monthly gross receipts from court fees, food and beverage, taxable merchandise, and tournament fees.

https://longbeachca.govqa.us/WEBAPP/_rs/(S(wmaja3gyroebxcbpmysql53j))/supporthome.aspx https://longbeachca.govqa.us/WEBAPP/_rs/(S(wmaja3gyroebxcbpmysql53j))/supporthome.aspx

9. Q: I am interested in submitting proposal for the RFP No PR-23-297. Will you please send me the copy of current lease/contract?

A: The Lease Agreement is available via the City Clerk website at the link below. The

Lease Agreement number is 28222.

https://citydocs.longbeach.gov/CityContracts/CustomSearch.aspx?SearchName=CityCont racts&_gl=1*o509qe*_ga*MjAzNDc0NzkwNy4xNzA2Mjk1OTIx*_ga_DH0765KYTY*MTcw

NzQxMDUwNi4yOC4xLjE3MDc0MTIwODUuNTkuMC4w&cr=1

If the link does not work, go to https://longbeach.gov/, click Departments, click City Clerk;

click City Contract, click ‘Seach City Contracts Index’; enter 28222 for the Contract Number;

then click Submit.

10. Q: Is the current contract on line? I tried finding it on the City of Long Beach Website with no luck.

A: Please see the answer to Question 9.

11. Q: Do you have a monthly income average for El Dorado & BIllie Jean King?

A: Please see the answer to Question 8 and Exhibit A. Monthly averages may be calculated using the data from Exhibit A.

The Lease with the current Contractor does not require the Contractor to separate revenue based on location.

12. Q: Who maintains the public restrooms that are located at the BIllie Jean King courts?

A: The Contractor is responsible for maintaining the restrooms located on the back side of the bleachers at the Billie Jean King Tennis Center.

13. Q: Currently, do the junior academy students and private lessons by instructors run fees through the pro shop cash register or do the instructors pay a weekly or monthly fee?

A: Currently, Junior Academy students pay the academy directly. The academy pays a monthly fee to the Contractor. For private instruction, students pay the instructor who pays court rental fees to the Contractor.

The management of the Junior Academy and private lessons at the Centers is coordinated by the Contractor. Proposers should conduct their research as part of their due diligence in responding to the RFP. The City is interested in how the Proposer would manage instruction at the Centers.

14. Q: What were the gross revenues for El Dorado Tennis & Pickleball center for each of the years 2018-2023?

https://citydocs.longbeach.gov/CityContracts/CustomSearch.aspx?SearchName=CityContracts&_gl=1*o509qe*_ga*MjAzNDc0NzkwNy4xNzA2Mjk1OTIx*_ga_DH0765KYTY*MTcwNzQxMDUwNi4yOC4xLjE3MDc0MTIwODUuNTkuMC4w&cr=1 https://citydocs.longbeach.gov/CityContracts/CustomSearch.aspx?SearchName=CityContracts&_gl=1*o509qe*_ga*MjAzNDc0NzkwNy4xNzA2Mjk1OTIx*_ga_DH0765KYTY*MTcwNzQxMDUwNi4yOC4xLjE3MDc0MTIwODUuNTkuMC4w&cr=1 https://citydocs.longbeach.gov/CityContracts/CustomSearch.aspx?SearchName=CityContracts&_gl=1*o509qe*_ga*MjAzNDc0NzkwNy4xNzA2Mjk1OTIx*_ga_DH0765KYTY*MTcwNzQxMDUwNi4yOC4xLjE3MDc0MTIwODUuNTkuMC4w&cr=1 https://longbeach.gov/

A: Please see the answer to Question 8 and Exhibit A. The Lease with the current

Contractor does not require the Contractor to separate revenue based on location.

15. Q: What were the gross revenues for Billie Jean King Tennis & Pickleball center for each of the years 2018-2023?

A: Please see the answer to Question 8 and Exhibit A. The Lease with the current Contractor does not require the Contractor to separate revenue based on location.

16. Q: What were the categorized breakdowns of gross revenues for both facilities. Please provide the greatest degree of itemization possible including:

• Private lesson revenue by subcontractors

• Group lesson revenue by subcontractors

• Court rental revenue

• Facility rental revenue

• USTA-sanctioned tournament revenue

• Unsanctioned event revenue

• Adult USTA League Team Revenue

• Junior Team Tennis Revenue

• Pro Shop revenue

• Camps (eg. Summer, Winter, Spring)

• Other revenue

A. The City’s Lease with the current Contractor does not require the provision of categorized breakdowns as requested in Question 16. See Exhibit A for revenue information. The Proposer should demonstrate that they have the experience and knowledge to price these items and determine the estimated revenue.

17. Q: What was the breakdown in gross revenues for the pro shop for the years 2018-2023 (to the extent possible to categorize). Please provide the greatest degree of itemization possible including:

• Racquet sales

• Paddle sales

• Stringing sales

• Racquet bag, overgrip, clothing and other pro shop sales

• Vending sales

A: Please see the answer to Question 16.

18. Q: Will the city make available for inspection the concessionaire’s monthly reports showing daily and monthly gross receipts and receipts of charges from instructors?

A: Please see Exhibit A for monthly gross receipts provided by the Contractor from 2018 to

2023. An estimate of monthly averages may be calculated using the data from Exhibit A.

19. Q: What were the total expenditures by the City for the tennis facilities for each of the years

2019-2023? Please provide detailed information to the extent possible.

A: The City does not have a list of expenditures for the Centers as requested. The Awarded

Contractor is responsible for maintaining the facilities and improvements.

Some capital improvement projects may be eligible for reimbursement with advanced written approval from the Director of Parks, Recreation and Marine and if funds are available in the Tennis Trust Account. Please see below for the list of approved expenditures from the Tennis Trust Account for the years of 2020 to 2023. (No reimbursements were requested in the year 2019.)

Requests for reimbursement from the Tennis Trust Account are evaluated individually based on the current situation, urgency, safety, and long-term capital improvements of the Centers, not by past precedent. All requests for expenditures from the Tennis Trust Account require written pre-approval from the Director of Parks, Recreation and Marine.

20. Q: What were the total expenditures by the concessionaire for the years 2019-2023 that were reimbursed by the City? Please provide a list of projects completed for which reimbursement was granted.

A: Please see the answer to Question 19.

21. Q: Please list any requests for reimbursement by concessionaire for the tennis centers over the last ten years that were denied by the City.

A. The City does not have a list of requests for reimbursement that were denied prior to

2022. Below are requests from 2022 that were denied. These were considered general maintenance and the responsibility of the Contractor.

Requests for reimbursement from the Tennis Trust Account are evaluated individually based on the current situation, urgency, safety, and long-term capital improvements of the

Centers, not by past precedent. All requests for expenditures from the Tennis Trust Account require written pre-approval from the Director of Parks, Recreation and Marine.

22. Q: Will the winning bidder have the exclusive right to provide tennis and pickleball instruction at the centers? Will the winning bidder be required to rent courts, subcontract or otherwise allow other tennis professionals and/or instructional companies teach and run programming at the facility?

A: The City is open to the Proposer’s recommendation on these items.

23. Q: What are the current prices charged by the tennis center (or teaching pros at the tennis center) for the following:

a. Private tennis lessons

b. Group tennis lessons

c. Private pickleball lessons

d. Group pickleball lessons

e. Tennis Court rental

f. Pickleball Court rental

g. USTA league play

h. Junior Team Tennis

i. Summer Tennis Camp (by day and/or by week)

A: Please see answer to Question 16.

24. Q: Are there any other city facilities available for use by the concessionaire for either afterschool activities or camp activities? Examples: swimming pool, classroom space, etc.?

A: The Lease with the current Contractor does not include the use of other City facilities.

The City is open to all new ideas to use other City facilities and the Centers for afterschool or camp activities.

25. Q: Does the City have a joint use agreement with the Long Beach Unified School District for use of facilities (including tennis courts)?

A: The City has joint use agreements with Long Beach Unified School District. The agreements do not include the use of the Centers; however, Agreement No. 24449 describes the reciprocal use of certain facilities for education, community recreation, and other civic activities. Lease No. 13009 allows for the City’s use of tennis courts at Naples

Elementary School for recreational tennis programs.

The City is open to ideas that would include Long Beach Unified School District use of the

Centers.

26. Q: Does the City provide any maintenance services at the facilities (eg. washing courts, blowing courts, landscaping, etc.)?

A: The City does not provide maintenance services at the Centers. Maintenance, such as the tasks listed above, are the responsibility of the Contractor.

27. Q: Who is responsible for court resurfacing and repairs/replacement of windscreens?

A: The Contractor is responsible for court resurfacing and repairs/replacement of the windscreens.

28. Q: Is court resurfacing considered a capital improvement project that the City will pay for?

A: Court resurfacing is considered a capital improvement project. The Contractor may request reimbursement for capital improvement projects. With advanced written approval of the Director of Parks, Recreation and Marine, reimbursement may be paid out of the

Tennis Trust Account. Reimbursement is dependent on the availability of funds in the account.

Payments from the Contractor are deposited in the Tennis Trust Account. Expenditures from the Tennis Trust Account are to be expended for the purchase, maintenance, operation or improvement of the grounds, buildings, structures, equipment, or facilities for public tennis at the Centers and are subject to the City’s purchasing and labor compliance requirements.

By responding to this RFP, the proposer agrees to accept the Centers ‘as-is.’

29. Q: Who is responsible for repairs/replacement of court lights and fixtures?

A: The Contractor is responsible for repairs/replacement of court lights and fixtures unless pre-approval for an expense has been received in writing from the Director of Parks, Recreation and Marine. Approval is given on a request-by-request basis and is not guaranteed. By responding to this RFP, the Proposer agrees to accept the Centers ‘as-is’.

See Question 28 for information on the Tennis Trust Account.

30. Q: How many courts at each center must remain open for “free court time” for students and seniors between the 3:00-5:00pm?

A: The Lease does not specify how many courts must remain open for free court use time.

This is open to discussion, and the City will consider suggestions from Proposers.

31. Q: How much “free court time” must be extended to City for City sponsored tournaments, exhibitions, etc.? Is there a limit to the number of hours or days? Are there currently any regularly scheduled tournaments and/or activities that occur on an annual basis, and if so, what are such activities and when do they take place?

A: The Lease does not specify the amount of free court time that must be extended to the

City for City-sponsored events, nor does it provide the number of hours or days. The City currently does not have any regularly scheduled tournaments and/or activities that occur on an annual basis at the Centers. The City, however, reserves the right to schedule such events with advance notice to the Awarded Contractor. The amount of free court time to be extended to the City is open to discussion, and the City will consider suggestions from

Proposers.

The Lease does not require the current operator to provide the City with a list of regularly scheduled tournaments and/or activities. Proposers are encouraged to conduct their own research as part of their due diligence in responding to the RFP. It is the Proposer's responsibility to investigate the site as long as it does not cause a disruption to the operations at the Centers.

32. Q: How many courts are currently used at each center on a weekly basis from 3:00-5:00pm for free non-reserved play?

A: See the answer to Question 30.

33. Q: Are there certain days/times that the dual striped courts are currently being exclusively dedicated to either tennis or pickleball use (if so, what are the days/times)?

A: The current Contractor offers pickleball by private reservation only. Information about the times and dates may be found on the Contractor’s website at the following:

https://www.lbctennis.com/pickleball

34. Q: What is the maximum number of courts at each facility that may be used for lessons?

A: The Lease does not specify the maximum number of courts that may be used for lessons at each facility. The City is open to suggestions and will entrust the Awarded Contractor to be the subject matter expert on how lessons will be managed.

35. Q: What is the maximum number of courts at each facility that may be used for programming

(USTA leagues, clinics, etc) vs. open for public reservation?

A: The Lease does not specify the maximum number of courts at each facility that may be used for programming. The City is open to suggestions and will entrust the Awarded

Contractor to be the subject matter expert on how programming will be managed.

36. Q: Can you provide a sample weekly court reservation schedule that identifies current usage patterns at each facility (eg. courts reserved for lessons, courts being booked by general public, courts pre-reserved for usta league matches and practices, courts used for pickleball lessons, courts booked for social events, etc.) ?

https://www.lbctennis.com/pickleball

A: The Lease does not require the Contractor to provide information regarding usage patterns at the Centers. The Proposer may assume that usage is higher during the primetime hours (Monday through Friday, 4:00 p.m. to close and all-day weekends) and mornings.

Proposers are encouraged to conduct their own research as part of their due diligence in responding to the RFP.

37. Q: Will the City allocate a portion of rent to an ongoing capital improvement fund?

A: See Question 28 for information on the Tennis Trust Account.

38. Q: What is the Tennis Trust Account and how much money is currently in it? How is that account funded?

A: As of February 16, 2024, the Tennis Trust Account has a balance of $137,617.56. See

Question 28 for information on the Tennis Trust Account.

39. Q: Can you provide a summary of all Tennis Trust Account expenditures from 2010 to present?

A: Please answer to Question 19.

40. Q: Are there any specific regulations, lease provisions, or court use policies that we should be aware of and must adhere to?

A: The City considers the award of this RFP to be an opportunity to update the regulations, lease provisions, and court use policies with new exhibits and lease language. At this time, those changes have not been decided and will be part of the negotiations with the Awarded

Contractor. It is suggested that Proposers review the RFP and current Lease for specific regulations, lease provisions, or court-use policies presently being implemented.

41. Q: For purposes of this RFP, are independent contractor teaching professionals considered

“subcontractors”?

A: Yes, an independent contractor teaching professional would be considered a subcontractor.

42. Q: Can the City please provide the financials for the year 2023 and 2022, including the total revenues and total expenses for each facility, if available?

A: Please see Question 8 and Exhibit A.

43. Q: What is the current rent amount that the City is receiving from the current vendor for the management of the two tennis centers? How much total rent did the City receive in 2023 and 2022 from the tennis vendor?

A: Please see Question 8 and Exhibit A.

44. Q: What is the ideal timeline that the City would like a potential new vendor to begin services of the City centers?

A: The current Contractor is expected to continue operating the Centers through December

31, 2024. It is anticipated that the award will be announced by the end of September and the Awarded Contractor will start in January of 2025.

45. Q: Is the vendor solely responsible for all capital improvements or will the City assist? Is there any maintenance cap on what the vendor has to pay vs what the City will help with?

A: The Awarded Contractor is responsible for all capital improvements at the Centers.

Please see the answer to Question 28.

46. Q: Can the City provide any reports on facility usage from 2023, such as, number of court rentals, number of league teams, number of tennis players, number of pickleball players?

A: Please see the answer to Question 36.

47. Q: Will the City post the answers to these questions online?

A: Yes, the City will post the answers to the questions online via Long Beach Buys.

48. Q: Are capital improvements subject to prevailing wage?

A: Yes, all capital improvement projects at the Centers are subject to prevailing wage provisions of Sections 1770 et seq. of the California Labor Code. In addition, capital improvement projects may be subject to the City’s Project Labor Agreement, as interpreted and applied by the City in its sole discretion.

49. Q. As the Centers are built out, are there any plans to expand or add new courts?

A. The City is in the process of conducting a study to add dedicated pickleball courts at the

Billie Jean King Center. The timeframe for installation has not been determined; however, funding for the project has been identified.

PREPARED BY: Janet Kariuki, Buyer I

ACKNOWLEDGED BY:

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