HomeMy WebLinkAboutStaff Report 14308
City of Palo Alto (ID # 14308)
City Council Staff Report
Meeting Date: 5/9/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Approve and Authorize City Manager to Execute Non-Binding Letter of
Intent with First Tee Silicon Valley Towards Establishing a Public Private
Partnership for Practice Facility Infrastructure Improvements at the Baylands
Golf Links and Long-Term Facility Use Access for the First Tee Silicon Valley’s
Youth Development Teaching Program
From: City Manager
Lead Department: Community Services
Recommendation
Staff recommends that City Council:
A. Approve a Letter of Intent (Attachment A) towards establishing a Public Private
Partnership between the City of Palo Alto and First Tee Silicon Valley for practice
facility infrastructure improvements at the Baylands Golf Links and long-term facility
use access for First Tee Silicon Valley’s youth development teaching program; and
B. Direct staff to negotiate agreements for infrastructure improvements and a public
private partnership for facility access at the Baylands Golf Links.
Background
The First Tee is a national non-profit 501(c) program providing youth educational programs that
build character, instill life-enhancing values, and promote healthy choices through the game of
golf. In 2009, the local First Tee chapter, the First Tee of San Jose, began a collaboration with
the Community Services Department (CSD) by offering a pilot program teaching life skills to
youth at the Palo Alto Municipal Golf Course. The pilot program was initiated with a CSD co-
sponsorship providing the golf course as a teaching and practice facility.
Participants in the pilot program participated with a diverse group of people and learned to
resolve conflicts, build confidence, and set goals. This program focused on nine core values of
honesty, integrity, sportsmanship, respect, confidence, responsibility, perseverance, courtesy,
and judgment.
Upon establishment of the pilot program in 2009 the First Tee of San Jose and its successor
organization, First Tee Silicon Valley (FTSV) and CSD have continued the collaboration. In 2013,
FTSV was incorporated and granted tax exempt non-profit status by the Internal Revenue
Service. FTSV assumed the program of its predecessor and has actively taught classes each
City of Palo Alto Page 2
season since the pilot program except during the golf course’s closure for a full course
renovation in 2016. Upon reopening as the Baylands Golf Links in 2018, FTSV resumed their
youth development program.
Currently, FTSV teaches eight-week sessions for three to four days a week. The program classes
are held in the afternoon and mostly use practice facilities such as lawn areas, a practice
putting green, a practice chipping green, and the driving range. Occasionally, participants play
on course as they progress in their skill learning.
Annually, FTSV teaches over 1,100 youth at a few golf courses in the region and has an outreach
program reaching 14,000 youth in schools and local communities. Youth participants range
between 2nd grade through 12th grade. Participants of all backgrounds participate in the
program, and financial assistance is offered by FTSV to ensure opportunities for all youth. FTSV
programs serve a large region, extending as far south as Hollister in San Benito County and as
far north as San Mateo in San Mateo County. Teaching facilities and courses are located at
Gavilan College in Gilroy, Rancho del Pueblo Golf Course in San Jose, and the Baylands Golf
Links. At the Baylands Golf Links, approximately 40% of the FTSV participants are Palo Alto
youth.
The collaboration has allowed for FTSV and CSD to deliver youth services to the community.
Due to the success of the program and a desire to expand its programing reach in Palo Alto and
the Mid-Peninsula, FTSV is proposing a formal Public Private Partnership (PPP) with the City.
FTSV seeks further youth development opportunities, infrastructure improvements to practice
and teaching facilities, and long-term usage access at the Baylands Golf Links for an initial 15-
year term with mutual renewals towards a 50-year partnership of non-exclusive usage.
Discussion
The location of the Baylands Golf Links is ideal for the regional population which FTSV seeks to
serve. However, the practice facilities require modification and improvements to be
appropriate for expanding FTSV’s programs. FTSV proposes investing in facility infrastructure
improvements to allow for safely using practice areas at the golf course. At present, the youth
practice and short game practice areas adjacent to both sides of the driving range remain
underutilized and mostly closed due to the trajectory of driving range balls being higher than
the height of the current retention netting creating a hazard for use. With the proposed
infrastructure improvements raising the height of the netting and poles, the underutilized
practice areas would be available for programs of FTSV, the Community Services Department,
and the contracted course operator.
Additional ball retention nets would be installed at the youth practice area to prevent balls
from entering the adjacent trail and Embarcadero Road. Lastly, there would be some
modification of the turf and contours of the youth practice area for the teaching needs of FTSV.
A visual depiction of the practice areas is in Figure A contained in Attachment B.
City of Palo Alto Page 3
FTSV is proposing to fundraise the cost for the initial facility infrastructure improvements
(estimated to be $4.2 million in 2019) and seeks a Letter of Intent (LOI) to substantiate with
potential donors the purpose of fundraising and the City’s acknowledgment of working towards
a long-term partnership. The ongoing maintenance of these improvements is expected to be
negotiated as part of the partnership discussion.
The LOI recognizes that the City and FTSV wish to collaborate on a long-term Public Private
Partnership regarding infrastructure improvements to practice facilities and securing non-
exclusive facility use access for FTSV’s youth development program. Staff is proposing an initial
term of 15 years as indicated in the LOI. The 15 years is in alignment with the anticipated
lifespan of the netting. Subsequent renewals towards a 50-year partnership are to be mutually
agreed upon with a cost share of future infrastructure repairs and improvements.
As an essential element of the partnership proposal is fundraising by FTSV, which according to
FTSV will only be successful if they can substantiate the City’s position as a partner, staff has
prepared a non-binding Letter of Intent (LOI) to facilitate discussion towards an agreement and
partnership. Staff requests that City Council approve the LOI and direct staff to negotiate an
agreement with FTSV and to return to City Council within 18 months for review and approval.
Should a partnership and infrastructure improvements allow for successful expansion of youth
programming, FTSV has a larger vision for further investments in additional facility
improvements including covered driving range stalls, relocation of the cart wash area and range
ball machines, constructing a new practice putting green, and constructing a learning center.
The learning center would consist of high-performance driving range stalls with technological
teaching tools, a meeting space, offices, bathrooms, and storage.
If the driving range netting improvements proposed in the FTSV partnership are not
constructed, the existing netting of the driving range will need to be replaced at the current
height by the City within the next few years because the nets are at the end of their useful life.
If the City opts to explore constructing a 2nd story to the driving range at the Baylands Golf
Links, both the netting and height of the poles would need to be replaced by the City. A 2nd
story would necessitate a feasibility assessment of costs, return on investment, and footprint
expansion of the driving range. Additionally, a ball trajectory study would need to be
performed to determine the appropriate height of netting and poles along with approval from
the Federal Aviation Administration due to the adjacent airport. Should the City potentially opt
to explore the 2nd story to the driving range, FTSV and the City would need to further discuss
the impact of the City exploring a 2nd story driving range.
Timeline
Upon establishment of a Letter of Intent, staff and FTSV will develop and negotiate project and
facility use agreements within 18 months to present to City Council for review. With an LOI,
FTSV will pursue fundraising and public outreach for the partnership proposal.
City of Palo Alto Page 4
Resource Impact
As the LOI is non-binding and intended to facilitate discussion towards agreements, it does not
commit either party to any agreement or contract. Financial resources for staff time are
established in the operating budgets of respective departments.
Note that there are other community service and recreation projects of interest in Palo Alto
such as the construction of a 2nd story of the driving range at the Baylands Golf Links, skatepark
renovations or replacement, and potential construction of a new gym and wellness center that
might overlap with the donor base of FTSV’s project and create fundraising obstacles. In
addition, staff will need to prioritize these projects because current staffing levels do not have
the capacity to oversee the development and implementation of major new community service
and recreation projects.
FTSV proposes to cover the cost of the initial facility infrastructure improvements (estimated to
be $4.2 million in 2019) through fundraising efforts. The ongoing maintenance of these
improvements is expected to be negotiated as part of the partnership discussion. Financial
impacts resulting from any agreements would be identified upon presentation to City Council
for review and approval.
Policy Implications
If infrastructure improvements at the golf course are constructed, a Park Improvement
Ordinance will be required for park development. The Ordinance will be prepared and
presented to City Council at the point when the actual project agreement is ready for City
Council approval.
Stakeholder Engagement
FTSV introduced a long-term PPP to the Parks and Recreation Commission (Commission) at
their October 27, 2020 meeting (agenda). FTSV returned to the Commission on September 28,
2021 (agenda) and the Commission recommended that Council direct staff to develop an LOI or
Memorandum of Understanding between the City and FTSV towards establishing a PPP for
youth development and infrastructure improvements at the Baylands Golf Links. OB Sports is
the City’s contracted course operator and currently coordinates regularly with FTSV, most
frequently to schedule FTSV programming at BGL seasonally. FTSV and City staff have been in
communication with OB Sports about FTSV’s proposal.
Environmental Review
The approval of the Letter of Intent does not qualify as a ‘project’ under the California
Environmental Quality Act (CEQA), California Public Resources Code section 21065 and the
CEQA guidelines, Title 14, section 15378, therefore, no environmental assessment is required at
this time.
Attachments:
City of Palo Alto Page 5
• Attachment A - FTSV LOI
• Attachment B - Figure A Diagram Practice Facilities
CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100
May 10, 2022
George Maxe, President & CEO First Tee of Silicon Valley
2797 Park Ave., Suite 207
San Jose, CA 95050
RE: Letter of Intent for Mutual Cooperation and Support between the City of Palo Alto and the First Tee
Silicon Valley to Facilitate a Public Private Partnership at Baylands Golf Links
Dear Mr. Maxe:
The City of Palo Alto (the "City") and the First Tee Silicon Valley (“FTSV") have enjoyed a positive
relationship since 2009. FTSV develops youth through the game of golf throughout Silicon Valley, by
providing educational programs that build character, instilling life-enhancing values, and promoting
healthy choices through the game of golf. FTSV teaches all youth 2nd – 12th grade regardless of
background. Since 2009, FTSV has provided these quality programs at Baylands Golf Links (“BGL”).
FTSV now wishes to collaborate and negotiate a long-term public private partnership to expand and
enhance First Tee’s programs by achieving the following strategic objectives:
1. Completing the designated BGL "Youth Practice Area" for use by FTSV for its programming and
educational efforts;
2. Providing specific infrastructure improvements at the BGL:
a. Raise netting of Driving Range to prevent range balls from entering adjacent practice
areas.
b. Construct new ball retention netting between Youth Practice Area and Embarcadero Rd.
to prevent practice balls from entering adjacent walkway and road.
3. Securing long-term access to other BGL facilities and long-term use rights at BGL for FTSV; and
4. Expanding FTSV's youth golf programing to thousands of local youth.
FTSV endeavors to fundraise and invest in BLG to construct the netting infrastructure improvements
listed above (estimated in 2019 to be $4.2 million or more) in order to make the BGL FTSV’s permanent
Mid-Peninsula location for up to fifty (50) years, with an initial agreement of 15 years based on an
estimated life expectancy of improvements and subsequent options for mutual renewals. This proposed
partnership is predicated on FTSV raising the funds needed for the netting infrastructure improvements.
FTSV’s long-term vision for Palo Alto and the Mid-Peninsula is to grow annual participation to over 1,000
youth at the golf course and 5,000 outreach youth by 2025. This vision represents 350% growth from
DocuSign Envelope ID: 7EA357A4-F251-42E5-8807-55D16C28385D
CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100
2019 participation of 290 youth). FTSV’s approach is to provide high quality golf course classes while
conducting outreach off-site at schools and in youth programs. FTSV’s vision is to use the BGL Youth
Practice Area for golf course classes and to host outreach field trips. FTSV’s initiative will include other
key City stakeholders and collaborators, such as, OB Sports (BGL Operator); Forrest Richardson &
Associates (BGL Architect); and Wadsworth Golf Construction (BGL Contractor), as well as users, such as,
Gunn High School, Palo Alto High School, and East Palo Alto Junior Golf.
The City does not have budgeted funds or its own plans to make the range netting height
improvements, and the City desires to fully open the youth practice area and the short game practice
area of the BGL and engage in a long-term partnership for youth golf programming. The City and FTSV
envision that the Community Service Department’s mission, core programs, and services would be
enhanced with a strong public-private partnership between the City and FTSV that is comprised of
mutual understanding and goals.
The City and FTSV are interested in undertaking and completing the project proposed above in
accordance with one or more agreements subject to mutually acceptable terms and conditions. The City
and FTSV will endeavor to negotiate a potential agreement over the next eighteen (18) months, as
practicable. Elements to be negotiated in the agreement(s) include:
• Length of Partnership and cost share of future upkeep, repairs, and capital improvement (such
as future netting and pole replacement).
• City contracting requirements and possible City collaboration associated with the selection of a
construction firm to install the poles and nets, and to complete the designated BGL “Youth
Practice Area”.
• Establishment of a timeframe and details, including but not limited to project funding,
pertaining to project construction, maintenance, and facility use.
• Acknowledgement of coordination with various City departments such as Community Services,
Planning, Development Services, Utilities, Public Works, Transportation, Administrative Services,
Purchasing, Real Estate, and Legal.
• Review by environmental agencies, environmental stakeholders, the City’s Architectural Review
Board, the City’s Planning and Transportation Commission, and possibly other City Boards or
Commissions.
• Acknowledgement the City may explore a 2nd story driving range which may require
coordination with the FTSV construction project.
• Options for either party to ‘exit’ a partnership.
Upon FTSV acceptance of this letter, FTSV will continue raising funds for the netting infrastructure
improvements at the BGL facility at FTSV’s sole discretion. FTSV will undertake a community outreach
and fundraising program to garner the community's input and support for the Project. The City will
provide reasonable staff support and other assistance to work with the FTSV in negotiation of an
DocuSign Envelope ID: 7EA357A4-F251-42E5-8807-55D16C28385D
CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100
agreement(s) that covers the points identified above. All agreements are subject to the approval of the
City Council, and this letter does not bind them to any specific decision or approval.
This letter is not a binding contract between the City and FTSV and does not establish a legal partnership
or any other legal relationship. Nor shall this letter create any reliance on either party to act or not act in
any specific way. It is intended to facilitate discussion of the key agreement terms and conditions of the
agreement(s) relating to the project, and it is only an expression of the basis on which the City and FTSV
would enter into the agreements regarding the project.
The City requests the FTSV’s acknowledgement of this letter below in order to facilitate further
discussion of the key terms and conditions of a proposed agreement(s) concerning the project.
Sincerely,
Ed Shikada, City Manager
Copies to:
Kristen O’Kane, Director, Community Services
Brad Eggleston, Director, Public Works
Kiely Nose, Director, Administrative Services
Daren Anderson, Assistant Director, Community Services
Tim Shimizu, Assistant City Attorney
Lam Do, Superintendent, Open Space, Parks, and Golf
First Tee Silicon Valley hereby acknowledges a mutual interest in developing appropriate agreements
between the Parties described above.
__________________________ __________________
George Maxe, President & CEO First Tee Silicon Valley Date
DocuSign Envelope ID: 7EA357A4-F251-42E5-8807-55D16C28385D
4/25/2022
Attachment B