The organization that runs the city’s outdoor sports complex will present its two-year review of operations at Wednesday’s Morgan Hill City Council meeting, and request an amendment to the contract that replaces the current flat payment schedule with a share of revenues.
The city signed a contract with the nonprofit Morgan Hill Youth Sports Alliance to run the 38-acre complex of artificial and natural turf soccer fields in 2010. Part of the five-year agreement required the MHYSA to present a review of field usage and financial performance after the first two years.
As the facility operator, the MHYSA is responsible for maintaining the facility, scheduling field use for soccer and other sports, and collecting fees from complex patrons.
In return, the organization pays the city a quarterly fee that has increased over the last two years, topping out at a total of $130,000 per year, or 15 percent of annual revenue – whichever is greater – starting in the current fiscal year, according to the contract signed in 2010.
The MHYSA has proposed revising that payment to schedule to $65,000 per year, plus 15 percent of revenue from advertising, sponsorships, grants, camps and clinics.
The city’s parks and recreation commission considered MHYSA’s proposal at its Sept. 18 meeting, and voted 4-1 to recommend the council approve the proposal.
Even though that would result in a reduction of $65,000 to the city’s general fund by July 1, 2013, and even though MHYSA’s financial report shows it ran the facility at about a $21,000 loss for the fiscal year that ended June 30, the commission was convinced the MHYSA “has established strong community relationships (and) enhanced Morgan Hill’s sports destination reputation,” according to a city staff report.
Furthermore, the MHYSA assured the commission that it is preparing to implement an “aggressive marketing campaign” to promote the facility.
When it was awarded the contract, MHYSA staff vowed to open up the facility to a wider variety of uses, which now include not just soccer but also lacrosse, flag football, rugby and special events such as this summer’s No-Bull BBQ Cookoff.
The contract also requires the MHYSA to make “reasonable efforts” to ensure at least 60 percent of field use hours are devoted to local residents and community groups. The MHYSA has not reached that benchmark with only 40 percent local use, but parks commissioners thought that would be difficult to achieve since most weekends – when the most hours are available – are devoted to regional youth soccer tournaments.
The City Council meeting will take place 7 p.m. Wednesday, at City Hall Council Chambers, 17555 Peak Ave.
