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HomeMy WebLinkAbout2026-28 Action Park Alliance , Inc - Amend 1 - X-Park Operations & MgmtMEMORANDUM CALIFORNIA - DATE: June 8, 2026------------ TO: Jon McMillen, City Manager FROM: Michael Calderon - Senior Management Analyst RE: AMEND NO. 1 - X PARK MANAGEMENT AND MAINTENANCE SERVICES WITH ACTION PARK ALLIANCE Please list the Contracting Party/ Vendor Name, any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. Authority to execute this agreement is based upon: ❑✓ Approved by City Council on May 5 (B2) & May 19 (C2), 2026 ❑ City Manager's signing authority provided under the City's Purchasing & Contracting Policy [Resolution No. 2023-008] for budget expenditures of $50,000 or less. ❑ City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for temporary employment positions. ❑ Department Director's or Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less. Procurement Method (one must a ❑ Bid RFP ❑ RFQ ❑ 3 written informal bids ❑ Sole Source ❑ Select Source ❑ Cooperative Procurement Requesting department shall check and attach the items below as appropriate: ❑✓ Agreement payment will be charged to Account No.: 101-3003-60190 ❑✓ Agreement term: Start Date July 1, 2026 ❑✓ Amount of Agreement, Amendment, Change Order, etc. End Date $ $542,839 June 30, 2028 REMINDER: Signing authorities listed above are applicable on the apprepate Agreement amount, not individual Amendments or Change Orders! Insurance certificates as required by the Agreement for Risk Manager approval Approved by: Oscar Mojica; Pending W/C Waiver; (MyCOl) Date: 6/9/2026 .❑ NOTE: Bonds (originals) as required by the Agreement (Performance, Payment, etc.) Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant FPPC regulation 18701(2) Business License No. Yes Expires: Requisition for a Purchase Order has been prepared (Agreements over $5,000) AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH ACTION PARK ALLIANCE This Amendment No. 1 ("Amendment 1") to Agreement for Contract Services ("Agreement") is made and entered into as of the 19'" day of May, 2026, ("Effective Date") by and between the City of La Quinta ("City"), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and Action Park Alliance Inc., a California Corporation with its principal place of business at 6824 S. Centinela Avenue, Los Angeles, California 90230 ("Contracting Party"). RECITALS WHEREAS, on or about May 16, 2023, the City and Contracting Party entered into an Agreement to provide X-Park management and operation services, for a total not to exceed amount of $1,273,817. The term of the Agreement expires on June 30, 2026 ("Initial Term"); and WHEREAS, the City and Contracting Party Mutually agree to amend Section 1.1 Scope of Services and related Exhibit A of the Agreement to expand services to 7-day operations year-round; and WHEREAS, the City and Contracting Party mutually agree to amend Section 2.1 Contract Sum and related Exhibit B of the Agreement to increase compensation by $1,112,819 for a total not to exceed amount of $2,386,636; and WHEREAS, pursuant to Section 3.4 Term, the City and Contracting Party mutually agree to extend the term of the Agreement for two additional years, from July 1, 2026, through June 30, 2028 ("Extended Term"). NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties agree as follows: AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. Section 1.1 Scope of Services is amended to read as follows: 1.1 Scope of Services. In Compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to X-Park management and operations, as specified in the "Scope of Services" attached hereto as "Exhibit A" and incorporated herein by this reference (the "Services"). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase "industry standards" shall mean those standards of practice recognized by one or more first-class performing similar services under similar circumstances. 2. "Exhibit A" — Scope of Services is amended as listed in "Exhibit A," attached hereto and incorporated herein by this reference. 3. Section 2.1 Contract Sum is amended to read as follows: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with the following revised "Exhibit B" (the "Schedule of Compensation") in a total amount not to exceed of Two Million Three Hundred Eighty -Six Thousand Six Hundred Thirty -Six Dollars ($2,386,636), for the life of the Agreement, encompassing the Initial and any Extended Terms (the "Contract Sum"), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party's rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 4. "Exhibit B" — Schedule of Compensation is amended as listed in "Exhibit B," attached hereto and incorporated herein by this reference. 5. Section 3.4 Term is amended to read as follows: 3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on July 1, 2023, and terminate on June 30, 2026 ("Initial Term"). This Agreement is being extended for two (2) additional years from July 1, 2026, through June 30, 2028 ("Extended Term"). This Agreement may not be extended any further. In all other respects, the original Agreement shall remain in effect. IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 1 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation SIGNED IN COUNTERPART JON McMILLEN, City Manager City of La Quinta, California Dated: ATTEST: SIGNED IN COUNTERPART MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: SIGNED IN COUNTERPART WILLIAM H. IHRKE, City Attorney City of La Quinta, California ACTION PARK ALLIANCE a California Corporation �k� KIRSTEN DERMER, CEO Action Park Alliance Dated: 6/8/26 IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 1 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation JON MeWfCLEN, City Manager of La Quinta, California Dated: 5-w 7Oz' ATTEST: _A46Lk2 MONIKA RADEV , City Jerk City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. ii-RKE, City Attorney City of La Quinta, California ACTION PARK ALLIANCE a California Corporation SIGNED IN COUNTERPART KIRSTEN DERMER, CEO Action Park Alliance Dated: Exhibit A Scope of Services Contracting Party agrees to operate, manage, maintain, and supervise the La Quinta X- Park facilities which includes the skate park, pro shop/concession building, and restrooms (Facilities). * La Quinta X-Park Hours of Operation and Staffing: Seven (7)-Day Operations Year Round • Monday — Friday — 1:00 pm — 2:00 pm — Two (2) staff • Monday— Friday— 2.00 pm — 10.00 pm —Three (3) staff • Saturday— Sunday— 10.00 am — 12.00 pm —Two (2) staff • Saturday— Sunday— 12.00 pm — 10.00 pm —Three (3) staff * The City and Contracting may periodically review additional or alternative hours of operation, and such hours may be adjusted upon mutual written agreement of both parties. Requests to change hours of operation based on weather, school schedules, or other factors must be submitted in writing a minimum of fourteen (14) days in advance and are subject to approval by the City. Observed Holiday Schedule: • The X-Park will be closed on Christmas Day, Thanksgiving, and Easter. Membership and Entry Fees: • Resident daily use fee: $2.00 • Resident annual membership fee: $25.00 • Non-resident daily use fee: $5.00 • Non-resident annual membership fee: $50.00 • Action Park Alliance, Inc. (APA) shall collect and retain 100% of the fees collected from concession sales and pro -shop sales. • Revenue generated from annual membership and day passes is retained by APA and applied towards compensation identified in Exhibit B (Schedule of Compensation) for Park operations. Membership and Entry Fees subject to change at the discretion of the City Manager. Programming: • Camps: Four 5-day camps per year, maximum 30 participants per session • Lessons & Clinics: Scheduled throughout the year TBD • Special Events: El Gato Classic, WCMX World Championship, etc., TBD • APA shall collect and retain 100% of revenue generated by public special events. Action Park Alliance (APA) Responsibilities Staffing and Security • The X-Park will be staffed with a minimum of two (2) qualified employees over the age of eighteen (18), at all times. • Additional staff members will be on duty for each session or activity where additional participants require it. A minimum of one staff person per 35 participants will be on duty at all times. • CPR Training —All APA employees must be CPR and First -Aid certified. • If there are union or prevailing wage requirements, costs may increase. • APA shall provide adequate security measures (video monitoring, alarm system, etc.), meeting APA's guidelines. Maintenance of Skatepark • APA will conduct daily park inspections; any significant findings, especially those that may present warranty issues, will be promptly reported to the City for further action. • Examples of maintenance that will be performed by APA are minor painting, trash removal, graffiti removal from within the fenced skatepark, and minor concrete patching (if not under warranty). • All structural, major, or warranty work needed will be reported to the City, who will be responsible for completing the repairs or filing warranty claims with the builder. • APA will facilitate and coordinate any necessary warranty filings and procedures. Maintenance of Pro Sh • All exterior maintenance of the pro shop building is the responsibility of the City, including major appliances, such as HVAC and electrical. • APA will maintain the interior of the pro shop building, including all fixtures provided, and will replace, at its cost, anything under $500.00. • If any warranty service is needed for any appliances or parts of the building, APA will coordinate the service with the City and maintain all appropriate documentation. Insurance/Liability • APA will require all participants to sign a liability waiver, releasing the City and APA of liability. These waivers must be signed by parent or legal guardian for anyone under the age of 18, and identification is required. Final wording of the waiver may be modified by the City's attorney/ risk manager. • APA will require safety gear to be worn at all times, in compliance with the laws of the State of California, and will enforce such requirements. • APA will maintain a liability policy naming the City (and all related parties), in the amounts of $1 M per occurrence, $2M aggregate. • APA will maintain an accident and excess medical insurance policy to drastically reduce the likelihood of lawsuits and insurance claims, especially for medical and injury reasons. Garbage Disposal • APA shall collect trash in the bins, and take it to the dumpster. Record -Keeping • APA will keep detailed injury reports, maintenance reports, liability waivers, and incident reports, both electronically and physically. • APA will report all major incidents and injuries to the City of La Quinta. • APA will complete and submit the required annual reporting and documentation to the State of California, to comply with recreational immunity provisions. • Complete financial information including detailed inventory tracking and all accounting. • APA provides quarterly park usage reporting to the City, and annual recap reporting. Taxac • APA will be responsible for the collection and payment of all sales taxes on sales of non-exempt items in the pro shop. • APA will be responsible for paying business personal property tax for its property within the pro shop building, including any fixtures and inventory. Any property taxes or special assessments for the building or the property shall be the responsibility of the City. Concessions Services • APA will maintain a fully -stocked concession operation, including drinks, water, snack foods, etc. Ratail (-,nnric • APA will maintain an inventory of necessary and replacement items, including skateboard decks, wheels, trucks, etc. Sponsorship • APA will work alongside the City of La Quinta to sell sponsorship for the skatepark, within any guidelines or restrictions from the City. Consultation • APA will provide consultation regarding any action sports events or marketing efforts in the city at no additional charge. City of La Quinta Responsibilities Skatepark • La Quinta shall provide a professionally designed and constructed skatepark. • Skatepark shall be in good condition, and meet all American Society for Testing and Materials (ASTM) guidelines. • Skatepark shall have adequate access control (fencing), meeting APA's guidelines. Pro shop building • The X Park pro shop building is approximately 1,400 square feet with working utilities, such as phone, internet, HVAC, electrical etc.; and contains concession operations and restrooms for APA's staff. I Itilitiac rn¢tc • The City shall be responsible for all ongoing utilities bills. Maintenance • The City will be responsible for major landscape and general site maintenance, including any repairs needed for lighting, fencing, and major concrete repairs. • The City will be responsible for minor landscape and general site maintenance within the fenced area of the skatepark. Garbage disposal TaxPc • The City shall be responsible for supplying a dumpster for APA to dispose of skatepark trash from skatepark participants. • Any property taxes or special assessments for the building or the property shall be the responsibility of the City. Marketing/ Promotion • The City shall include the APA skatepark in its monthly mailers and any other promotional materials it produces. Staffing Fees • The City's annual staffing fee to APA shall be payable quarterly, in advance of the beginning of each quarter. • The first two months' payments will bed ue upon the signing of the management agreement. Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed Two Million Three Hundred Eighty -Six Thousand Six Hundred Thirty -Six Dollars ($2,386,636) for the life of the Agreement, including the Initial and any Extended Terms (the "Contract Sum"), specified in detail per fiscal year in the table below, which includes a base amount and a compounded annual increase not to exceed 5% per year for fiscal years 2024/25, 2025/26, and 2026/27 for anticipated cost increases related to staffing, Consumer Price Index (CPI-U), insurance premiums, as well as compensation for unanticipated programming, events, or operation supplies requested by the City, except as provided in Section 1.7. The City may authorize a maximum increase of 5% for fiscal year 2027/28 or an increase based on the Local Consumer Price Index for Riverside, San Bernardino, and Ontario areas, whichever is less. The Contract Sum shall be paid to Contracting Party in installment payments in an amount identified in Contracting Party's schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. Quarterly invoices shall include a detailed accounting of revenue generated from annual memberships and day passes, along with documentation showing how such revenue is applied to offset the total cost of park operations. Contract Sum to be paid as follows: Seven -Day Operations Year -Round Fiscal Year Compensation 2023-2024 $ 404,078 2024-2025 $ 424,282 2025-2026 $ 445,457 Initial Term Total: $1,273,817 2026-2027 $ 542,839 2027-2028 $ 569,980 Extended Term Total: $1,112,819 GRAND TOTAL: $2,386,636 City of La Quinta CONSENT CALENDAR ITEM NO. 2 CITY COUNCIL MEETING May 19, 2026 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH ACTION PARK ALLIANCE FOR MANAGEMENT AND OPERATIONS OF THE LA QUINTA X-PARK RECOMMENDATION Approve Amendment No. 1 to Agreement for Contract Services with Action Park Alliance for management and seven-day operations year-round of the La Quinta X-Park, extending the term for two additional years, through June 30, 2028, for a total not to exceed amount of $1,112,819; and authorize the City Manager to execute the amendment. XECUTIVE SUMMARY • Since October 2021, the City has partnered with Action Park Alliance (APA) to oversee operations at the La Quinta X Park (Park). • APA has demonstrated success in operating the Park, delivering quality programs and events, maintaining a safe environment, and keeping the facility well maintained. • On May 5, 2026, Council approved amending APA's Agreement for Contract Services to extend the term for two additional years and to expand to seven-day operations year-round, which is reflected in Amendment No. 1 (Attachment 1). FISCAL IMPACT Costs for the expanded Park operations to seven -days per week year-round for the two- year extended term are detailed in the table below. A maximum of 5% or the local Consumer Price Index (CPI) for Riverside, San Bernardino, and Ontario areas, whichever is less is included for fiscal year (FY) 2027/28. Revenue generated by the Park will offset the annual expense of facility operations. Funding will be budgeted in the X-Park Programming Account No. 101-3003-60190. Seven Dav Operations Year -Round FY 2026/27 FY 2027/28 Extended Term Total Initial Term Total Contract Grand Total $542,839 $569,980 $1,112,819 $1,273,817 $2,386,636 13 BACKGROUND/ANALYSIS The La Quinta X-Park is one of the premier action sports facilities in Southern California, featuring a combi bowl, pump track, street course, pro shop, and a variety of programming. In August 2021, the City issued a request for proposals for skatepark management services, and APA was identified as the most qualified operator based on its experience and expertise in action sports programming and facility management. On October 19, 2021, Council approved an initial one-year agreement with APA, and on May 2, 2023, a subsequent agreement for a three-year term ending June 30, 2026. Since assuming operations, APA has maintained a safe, clean, and active facility while delivering programs and events that have increased public use and enhanced the Park's profile as a destination venue. Programming has included skate lessons, skate camps, and best trick contests, in addition to special events such as the WCMX World Championships and Hotwheels Superchargers. APA has also coordinated appearances by professional action sports athletes including Tony Hawk, Eddie Elguera, Steve Caballero, X Games Gold Medalist Leticia Bufoni, and the Red Bull Skate Team. Since opening, the Park's attendance has steadily increased, underscoring its growing popularity with residents and visitors. APA has helped drive this growth by managing the Park's membership program, which averages between 1,500 and 2,100 users each month and has issued more than 2,000 annual memberships to date. Extending the agreement ensures uninterrupted park operations and allows APA to continue delivering high -quality events and programs at the Park, with plans already underway to expand and enhance future offerings. On May 5, 2026, Council considered Amendment No. 1 and approved extending APA's services for two additional years, as well as expanding to seven-day operations year- round. The amendment has been revised per Council's direction above and the expanded hours are reflected in blue font in Exhibit A, which also provides for the ability to adjust hours of operations upon mutual agreement of both parties and executed in writing. ALTERNATIVES As Council approved proposed Amendment No. 1 to the agreement with APA on May 5, 2026, staff does not recommend an alternative. Prepared by: Michael Calderon, Senior Management Analyst Approved by: Christina Calderon, Community Services Deputy Director Attachment: 1. Amendment No. 1 to Agreement for Contract Services with APA 14 City of La Quinta BUSINESS SESSION ITEM NO. 2 CITY COUNCIL MEETING: May 5, 2026 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH ACTION PARK ALLIANCE FOR MANAGEMENT AND OPERATIONS OF THE LA QUINTA X PARK RECOMMENDATION Approve Amendment No. 1 to Agreement for Contract Services with Action Park Alliance for management and operations of the La Quinta X Park. XECUTIVE SUMMARY • Since October 2021, the City has partnered with Action Park Alliance (APA) to oversee operations at the La Quinta X Park (Park). • APA has demonstrated success in operating the Park, delivering quality programs and events, maintaining a safe environment, and keeping the facility well maintained. • Approving the proposed Amendment No. 1 (Attachment 1) would extend APA's services for two additional years, ensuring continuity of operations and programs. FISCAL IMPACT With the execution of this Amendment, revenue generated by the Park will offset the annual expense of facility operations. The fiscal impact varies based on hours and days of operation. Staff propose two options for Council consideration: • Option 1 — Expand Operations: Park open seven (7) days per week year-round for a total sum of $542,839 • Option 2 — Maintain Current Schedule: Park open five (5) days per week for six (6) months and seven (7) days per week for the remaining six (6) months for a total sum of $465,502 Both Extended Term options include an increase for fiscal year 2027/28 of a maximum of 5% or the Local Consumer Price Index (CPI) for Riverside, San Bernardino, and Ontario areas, whichever is less. Proposed compensation to be allocated for each option as follows: 123 OPTION 1 — Seven Dav Operations Year -Round FY 2026127 FY T 2027128 Extended Term Total Initial Term Total Contract Grand Total $542,839 $569,980 $1,112,819 $1,273,817 $2,386,636 OPTION 2 — Five Dav Operations Six Months. Seven Dav Operations Six Months FY 2026/27 FY 2027/28 Extended Term Total Initial Term Total Contract Grand Total $465,502 $488,777 $954,279 $1,273,817 $2,228,096 Funding will be budgeted in the X Park Programming Account No. 101-3003-60190. BACKGROUND/ANALYSIS The La Quinta X Park is one of the premier action sports facilities in Southern California, featuring a combi bowl, pump track, street course, pro shop, and a variety of programming. In August 2021, the City issued a Request for Proposals for skatepark management services, and APA was identified as the most qualified operator based on its experience and expertise in action sports programming and facility management. City Council approved an initial one-year agreement with APA on October 19, 2021, and approved a subsequent agreement on May 2, 2023, for a three-year term ending June 30, 2026. Since assuming operations, APA has maintained a safe, clean, and active facility while delivering programs and events that have increased public use and enhanced the Park's profile as a destination venue. Programming has included skate lessons, skate camps, and best trick contests, in addition to special events such as the WCMX World Championships and Hotwheels Superchargers. APA has also coordinated appearances by professional action sports athletes including Tony Hawk, Eddie Elguera, Steve Caballero, X Games Gold Medalist Leticia Bufoni, and the Red Bull Skate Team. Since opening, the Park's attendance has steadily increased, underscoring its growing popularity with residents and visitors. APA has helped drive this growth by managing the Park's membership program, which averages between 1,500 and 2,100 users each month and has issued more than 2,000 annual memberships to date. Extending the agreement would ensure uninterrupted park operations and allow APA to continue delivering high -quality events and programs at the Park, with plans already underway to expand and enhance future offerings. ALTERNATIVES Council may elect to modify and/or deny the proposed Amendment, however this would interrupt Park operations and programs until another service provider is contracted. Prepared by: Michael Calderon, Senior Management Analyst Approved by: Christina Calderon, Community Services Deputy Director 124 ATTACHMENT 1 AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH ACTION PARK ALLIANCE This Amendment No. 1 ("Amendment 1") to Agreement for Contract Services ("Agreement") is made and entered into as of the 20t" day of May, 2026, ("Effective Date") by and between the City of La Quinta ("City"), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and Action Park Alliance Inc., a California Corporation ("Contracting Party"). RECITALS WHEREAS, on or about May 16, 2023, the City and Contracting Party entered into an Agreement to provide X Park management and operation services, for a total not to exceed amount of $1,273,817. The term of the Agreement expires on June 30, 2026 ("Initial Term"); and WHEREAS, the City and Contracting Party Mutually agree to amend Section 1.1 Scope of Services and related Exhibit A of the agreement to include the additional services of 7-day operations year-round; and WHEREAS, the City and Contracting Party mutually agree to amend Section 2.1 Contract Sum and related Exhibit B of the Agreement to increase the total not to exceed compensation amount by $1,112,819 to $2,386,636 (Option 11 OR by $954,279 to $2,228,096 (Option 2�; and WHEREAS, pursuant to Section 3.4 Term, the City and Contracting Party mutually agree to extend the term of the agreement for two additional years, from July 1, 2026 through June 30, 2028 ("Extended Term"). NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties agree as follows: AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: Section 1.1 Scope of Services is amended to read as follows: 1.1 Scope of Services. In Compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to X-Park management and operations services, as specified in the "Scope of Services" attached hereto as "Exhibit A" and incorporated herein by this reference (the "Services"). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that 125 all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase "industry standards" shall mean those standards of practice recognized by one or more first-class performing similar services under similar circumstances. 2. "Exhibit A" — Scope of Services is amended as listed in "Exhibit A," attached hereto and incorporated herein by this reference. 3. Section 2.1 Contract Sum is amended to read as follows: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with the following revised "Exhibit B" (the "Schedule of Compensation") in a total amount not to exceed of TBD pending approval of Option 1 or Option 2, (TBD), for the life of the Agreement, encompassing the Initial and any Extended Terms (the "Contract Sum"), except as provided in Section 1.7. 4. Section 3.4 Term is amended to read as follows: 3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on July 1, 2023, and terminate on June 30, 2026 ("Initial Term"). This Agreement is being extended for two (2) additional years from July 1, 2026 through June 30, 2028 ("Extended Term"). This Agreement may not be extended any further. 5. "Exhibit B" — Schedule of Compensation is amended as listed in "Exhibit B," attached hereto and incorporated herein by this reference. In all other respects, the original Agreement shall remain in effect. 126 IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 1 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation JON McMILLEN, City Manager City of La Quinta, California Dated: ATTEST: MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California ACTION PARK ALLIANCE a California Corporation KIRSTEN DERMER, CEO Action Park Alliance Dated: 127 Exhibit A Scope of Services Contracting Party agrees to operate, manage, maintain, and supervise the La Quinta X- Park facilities which includes the skate park, pro shop/concession building, and restrooms (Facilities). La Quinta X-Park Hours of Operation and Staffing, pending approval of Option 1 or Option 2: UP I ION 1 — Seven (7)-Day Operations Year Round • Monday — Friday — 12:00 pm — 2:00 pm — Two (2) staff • Monday — Friday — 2:00 pm — 9:00 pm — Three (3) staff • Saturday — Sunday — 9:00 am — 12:00 pm — Two (2) staff • Saturday — Sunday — 12:00 pm — 9:00 pm — Three (3) staff Requests to change hours of operation based on weather, school schedules, or other factors must be submitted in writing a minimum of fourteen (14) days in advance and are subject to approval by the City. OPTION 2 — Five (5)-Day Operations Six (6) Months, Seven (7)-Day Operations Six (6) Months • Monday — Friday — 12:00 pm — 2:00 pm — Two (2) staff (November — April) • Monday — Friday — 2:00 pm — 9:00 pm — Three (3) staff (November — April) • Mondays and Tuesdays: CLOSED (May — October) • Saturday — Sunday — 9:00 am — 12:00 pm — Two (2) staff (May — October) • Saturday — Sunday — 12:00 pm — 9:00 pm — Three (3) staff (May — October) Requests to change hours of operation based on weather, school schedules, or other factors must be submitted in writing a minimum of fourteen (14) days in advance and are subject to approval by the City. Five (5)-day and seven (7)-day operation months may vary based on seasonal usage and Park attendance and is subject to approval by City staff. Observed Holiday Schedule: • The X-Park will be closed on Christmas Day, Thanksgiving, and Easter. Membership and Entry Fees: 128 • Resident daily use fee: $2.00 • Resident annual membership fee: $25.00 • Non-resident daily use fee: $5.00 • Non-resident annual membership fee: $50.00 • Action Park Alliance, Inc. (APA) shall collect and retain 100% of the fees collected from concession sales and pro -shop sales. • Revenue generated from annual membership and day passes is retained by APA and applied towards compensation identified in Exhibit B (Schedule of Compensation) for Park operations. Membership and Entry Fees subject to change at the discretion of the City Manager. Programming: • Camps: Four 5-day camps per year, maximum 30 participants per session • Lessons & Clinics: Scheduled throughout the year TBD • Special Events: El Gato Classic, WCMX World Championship, etc., TBD • APA shall collect and retain 100% of revenue generated by public special events. Action Park Alliance (APA) Responsibilities Staffina and Securi • The X-Park will be staffed with a minimum of two (2) qualified employees over the age of eighteen (18), at all times. • Additional staff members will be on duty for each session or activity where additional participants require it. A minimum of one staff person per 35 participants will be on duty at all times. • CPR Training —All APA employees must be CPR and First -Aid certified. • If there are union or prevailing wage requirements, costs may increase. • APA shall provide adequate security measures (video monitoring, alarm system, etc.), meeting APA's guidelines. 129 Maintenance of Skatepark • APA will conduct daily park inspections; any significant findings, especially those that may present warranty issues, will be promptly reported to the City for further action. • Examples of maintenance that will be performed by APA are minor painting, trash removal, graffiti removal from within the fenced skatepark, and minor concrete patching (if not under warranty). • All structural, major, or warranty work needed will be reported to the City, who will be responsible for completing the repairs or filing warranty claims with the builder. • APA will facilitate and coordinate any necessary warranty filings and procedures. Maintenance of Pro Sho • All exterior maintenance of the pro shop building is the responsibility of the City, including major appliances, such as HVAC and electrical. • APA will maintain the interior of the pro shop building, including all fixtures provided, and will replace, at its cost, anything under $500.00. If any warranty service is needed for any appliances or parts of the building, APA will coordinate the service with the City and maintain all appropriate documentation. Insurance/Liabil • APA will require all participants to sign a liability waiver, releasing the City and APA of liability. These waivers must be signed by parent or legal guardian for anyone under the age of 18, and identification is required. Final wording of the waiver may be modified by the City's attorney/ risk manager. • APA will require safety gear to be worn at all times, in compliance with the laws of the State of California, and will enforce such requirements. • APA will maintain a liability policy naming the City (and all related parties), in the amounts of $1 M per occurrence, $2M aggregate. • APA will maintain an accident and excess medical insurance policy to drastically reduce the likelihood of lawsuits and insurance claims, especially for medical and injury reasons. 130 Garbage Disposal • APA shall collect trash in the bins, and take it to the dumpster. Record -Keeping Taxes • APA will keep detailed injury reports, maintenance reports, liability waivers, and incident reports, both electronically and physically. • APA will report all major incidents and injuries to the City of La Quinta. • APA will complete and submit the required annual reporting and documentation to the State of California, to comply with recreational immunity provisions. • Complete financial information including detailed inventory tracking and all accounting. • APA provides quarterly park usage reporting to the City, and annual recap reporting. • APA will be responsible for the collection and payment of all sales taxes on sales of non-exempt items in the pro shop. • APA will be responsible for paying business personal property tax for its property within the pro shop building, including any fixtures and inventory. Any property taxes or special assessments for the building or the property shall be the responsibility of the City. Concessions Services • APA will maintain a fully -stocked concession operation, including drinks, water, snack foods, etc. Retail Goods • APA will maintain an inventory of necessary and replacement items, including skateboard decks, wheels, trucks, etc. Sponsorship • APA will work alongside the City of La Quinta to sell sponsorship for the skatepark, within any guidelines or restrictions from the City. 131 Consultation • APA will provide consultation regarding any action sports events or marketing efforts in the city at no additional charge. City of La Quinta Responsibilities Skatepark • La Quinta shall provide a professionally designed and constructed skatepark. • Skatepark shall be in good condition, and meet all American Society for Testing and Materials (ASTM) guidelines. • Skatepark shall have adequate access control (fencing), meeting APA's guidelines. Pro shoo buildin • The X Park pro shop building is approximately 1,400 square feet with working utilities, such as phone, internet, HVAC, electrical etc.; and contains concession operations and restrooms for APA's staff. I IfilitiPc rnctc • The City shall be responsible for all ongoing utilities bills. Maintenance • The City will be responsible for major landscape and general site maintenance, including any repairs needed for lighting, fencing, and major concrete repairs. • The City will be responsible for minor landscape and general site maintenance within the fenced area of the skatepark. Garbage disposal Taxes • The City shall be responsible for supplying a dumpster for APA to dispose of skatepark trash from skatepark participants. • Any property taxes or special assessments for the building or the property shall be the responsibility of the City. 132 Marketing/ Promotion The City shall include the APA skatepark in its monthly mailers and any other promotional materials it produces. Staffing Fees • The City's annual staffing fee to APA shall be payable quarterly, in advance of the beginning of each quarter. The first two months' payments will be due upon the signing of the management agreement. 133 Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is not to exceed Two Million Three Hundred Eighty -Six Thousand Six Hundred Thirty -Six Dollars ($2,386,636 (Option 1) OR Two Million Two Hundred Twenty - Eight Thousand Ninety -Six ($2,228,096 (Option 2) for the life of the Agreement, including the Initial and any Extended Terms (the "Contract Sum"), specified in detail per fiscal year in the table below, which includes a base amount and a compounded annual increase not to exceed 5% per year for fiscal years 2024/25, 2025/26, and 2026/27 for anticipated cost increases related to staffing, Consumer Price Index (CPI-U), insurance premiums, as well as compensation for unanticipated programming, events, or operation supplies requested by the City, except as provided in Section 1.7. The City may authorize a maximum increase of 5% for fiscal year 2027/28 or an increase based on the Local Consumer Price Index for Riverside, San Bernardino, and Ontario areas, whichever is less. The Contract Sum shall be paid to Contracting Party in installment payments in an amount identified in Contracting Party's schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. Quarterly invoices shall include a detailed accounting of revenue generated from annual memberships and day passes, along with documentation showing how such revenue is applied to offset the total cost of park operations. Contract Sum to be paid as follows (pending approval of Options 1 or Option 2): OPTION 1 — Seven -Day Operations Year -Round Fiscal Year Not to Exceed Annual Compensation 2023-2024 $404,078 2024-2025 $424,282 2025-2026 $445,457 2026-2027 $542,839 2027-2028 $569,980 Total Compensation: $2,386,636 OPTION 2 — Five -Day Operations Six Months, Seven -Day Operations Six Months Fiscal Year Not to Exceed Annual Compensation 2023-2024 $404,078 2024-2025 $424,282 2025-2026 $445,457 2026-2027 $465,502 2027-2028 $488,777 Total Compensation: $2,228,096 134