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14. Consideration of a license agreement with San Jose Arena Management to operate an outdoor holiday ice rink in Downtown Pleasanton Director of Economic Development Pamela Ott gave the staff report, stating the license agreement has been submitted to operate a holiday temporary ice rink in Downtown Pleasanton. She presented an artist’s rendering of the rink. The rink will be called, The Shark’s Holiday Ice at Pleasanton, and key partners will be the City and San Jose Arena Management. Staff sees this bringing a recreational attraction not currently in the Tri-Valley area and also an economic stimulus for the Downtown. They estimate 20,000 to 30,000 holiday visitors will add to the vitality of the City. The library site was chosen that runs along Old Bernal Avenue and considerations were reviewed for electricity and proximity to parking. The City will lease the site to San Jose Arena Management for $1 per year and while this site was chosen, the license agreement states the site could be changed to a different location in future years. Most of the ice skating will be in the afternoons and evenings, and the City site lends itself to parking and visitors. Staff acknowledges there will be some impacts to the library but staff is working on bringing in additional resources for parking, which might include the 3-acre parcel across the street and whether it can be leased short-term. Ms. Ott highlighted the license agreement, stating it is a 3-year agreement starting this year with an option for an additional 2 years. It will operate 7 days a week generally from noon to 10:00PM and early on the weekends. She noted that San Jose Arena Management will generally manage the fabrication, installation, operation, and tear down of the 14,000 foot ice rink, equipment, and provide professional management, staffing and maintenance during the hours of operation. Part of the license agreement addressed collaborating to provide third parties to come in and provide concessions, but staff would prefer those people go to the downtown before and after visiting and patronize local shops. The City will be extending utilities to the site and voice and data line infrastructure. The City will cover the cost for electricity up front and would be reimbursed from operating revenues. Ms. Ott said the staff report discusses operating revenues and expenses, it is expected on-site ticket sales and sponsorship will cover expenses, and tickets can also be purchased through the City’s Parks and Recreation center. She discussed staff’s work to acquire corporate sponsorships and the City’s investment would be a $30,000 annual sponsorship. If during any particular year, the City was not able to achieve any of the three corporate sponsorships, the investment would be $40,000 and staff acknowledges other cities pay considerably more than this. The City will also conduct a financial review of the operation after the holiday season ends and after operating expenses are calculated, the cost of electricity and security personnel will be deducted and reimbursed back to the City. From this point, net operating profit would be identified; the license agreement specifies that 90% of the net proceeds be distributed to community-based organizations, which will be worked out with the City and the Sharks. Any operating losses would be absorbed by San Jose Arena Management. Mayor Hosterman questioned and confirmed with Ms. Ott that San Jose Arena Management is developing a sponsorship package at varying levels, and Mayor Hosterman suggested contacting Dave Duffield who she felt would have a big interest in being a sponsor. Councilmember McGovern confirmed that the rink is 14,000 square feet and not 1400 square feet. She questioned and confirmed that the Fire Marshal limits the number of skaters, which was somewhere around 125 skaters at any one time. City Council Minutes Page 17 of 20 April 21, 2009