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HomeMy WebLinkAboutItem No. 04 Stadium Operations, Maintenance & Management City of Lake Elsinore 130 South Main Street Lake Elsinore,CA 92530 www.lake-elsinore.org UIKE.Cw[,i'll101 F. �''' Text File File Number: ID# 17-698 Agenda Date:6/28/2018 Version: 1 Status:Approval Final In Control:Oversight Board File Type:Report Agenda Number:4) City of Lake Elsinore Page 1 Printed on 6/26/2018 REPORT TO OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE To: Chairperson Kelley and Members of the Oversight Board From: Barbara Leibold, Successor Agency Counsel Date: June 28, 2018 Subject: Stadium Operations, Maintenance &Management Recommendation 1. Adopt A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AN EXTENSION TO THE RESTATED FIFTH AMENDMENT TO THE STADIUM INTERIM MANAGEMENT AGREEMENT. 2. Direct the Executive Director of the Successor Agency to submit the Resolution and Extension to the State Department of Finance upon receipt by the Successor Agency of the Department's determination approving the Restated Fifth Amendment. 3. Adopt A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING A SECOND RESTATED FIFTH AMENDMENT TO THE STADIUM INTERIM MANAGEMENT AGREEMENT. 4. Direct the Executive Director of the Successor Agency to submit the Resolution and Second Restated Fifth Amendment to the State Department of Finance upon receipt by the Successor Agency of the Department's determination denying the Restated Fifth Amendment. Background The former Redevelopment Agency of the City of Lake Elsinore constructed the Lake Elsinore Diamond Stadium ("Stadium") as a redevelopment project to stimulate redevelopment activities in the "Back Basin" area of the City consistent with the Redevelopment Plan for the Rancho Laguna Redevelopment Project No. III. The Stadium was completed in 1994 and has been home to the Storm minor league baseball team for 24 seasons pursuant to various license and maintenance agreements. Despite positive economic projections, the Stadium has always cost more to operate than the revenues it generates. A summary of the History of the Diamond Stadium is attached. In October 2000, the Stadium Operator/Lessee abandoned the Stadium on the basis of reported significant financial losses. In response, the Agency commenced negotiations with the Storm to mitigate damages and ensure the Storm's continued use of the Page 1 of 5 Stadium Operations, Maintenance & Management June 28, 2018 Stadium. As a result of these negotiations, the Redevelopment Agency entered into certain agreements in 2001/2002 involving the operation and maintenance of the Stadium, including a License Agreement, a Stadium Field and Maintenance Agreement, and a Concession License Agreement(collectively, the "Stadium Operations Contracts"). Pursuant to the Stadium Operations Contracts, the Storm licensed and maintained the Stadium for baseball games and other Storm events. An affiliate of the Storm, Golden State Concessions and Catering, Inc. ("Golden State"), operated the concessions at the Stadium. Under the Stadium Operations Contracts, the Agency's management, operation and maintenance costs were significant and the Stadium operated at a loss requiring significant Redevelopment Agency subsidies. In 2005, in an effort to reduce the Agency's Stadium expenses, the Agency commenced negotiations with Diamond Stadium Group (DSG) to undertake all of the Stadium operations, maintenance and management responsibilities. The Storm LP, Golden State and DSG share common controlling ownership. Negotiations between the Agency and DSG resulted in June 2007 amendments to the Stadium Operations Contracts and a new Stadium License, Lease and Management Agreement (the "2007 Management Agreement"). DSG fulfilled all aspects of the 2007 Management Agreement which reduced the Agency's Stadium-related costs. However, DSG reported annual losses under the 2007 Management Agreement and in June 2011 chose to exercise its right to terminate the 2007 Management Agreement effective December 31, 2012. Upon termination of the 2007 Management Agreement, the rights and responsibilities for Stadium management, operations and maintenance were again divided in accordance with the Stadium Operations Contracts; however, at that time, the Successor Agency did not have the resources to satisfactorily perform its obligations. On December 11, 2012, the Successor Agency approved the Stadium Interim Management Agreement ("Interim Agreement") to provide for the efficient and cost effective management, maintenance and operation of the Stadium by the Storm through 2013. A First Amendment to the Interim Agreement was approved in September 2013. A Second Amendment to the Interim Agreement was approved in September 2014, a Third Amendment was approved in September 2015, and a Fourth Amendment was approved in September 2016. The State Department of Finance ("Department") approved the Interim Agreement and the First through Fourth Amendments and allocated Real Property Tax Trust Funds (RPTTF) for Stadium obligations in accordance with the Successor Agency's Recognized Obligations Payment Schedules (ROPS). The Interim Agreement and the First, Second, Third and Fourth Amendments have been successfully implemented to provide for efficient and cost effective management, maintenance and operation of the Diamond Stadium ensuring performance under the Successor Agency's enforceable obligations. Page 2 of 5 Stadium Operations, Maintenance & Management June 28, 2018 In January 2018, the Successor Agency and the Oversight Board approved a Fifth Amendment to the Stadium Interim Management Agreement which provided for an initial two-year term commencing July 1, 2018 and, unless terminated early by either party, renewing automatically for up to three two-year Renewal Terms and one six-month Extension Term. The outside expiration of the Fifth Amendment ran concurrent with the expiration of the Stadium Operations Contracts on December 31, 2026. The Department rejected the Fifth Amendment and the Executive Director terminated the Fifth Amendment in accordance with the early termination provisions. The Department subsequently denied the allocation of RPTTF for Stadium obligations requested by the Successor Agency and approved by the Oversight Board on its ROPS 18-19. On May 1, 2018, the Successor Agency met with the Department for a Meet and Confer consultation regarding the Department's initial determination. In light of the pending June 30, 2018 expiration of the Fourth Amendment and the uncertainty of the allocation of RPTTF for Stadium operations pending the Department's Meet and Confer determination, on May 8, 2018, the Successor Agency approved a Restated Fifth Amendment with the Storm for a one-year term commencing July 1, 2018 and expiring June 30, 2019. The Restated Fifth Amendment was submitted to and approved by the Oversight Board on May 16, 2018 and submitted to the Department. In approving the Restated Fifth Amendment, the Successor Agency and the Oversight Board made findings that (i) the Stadium Operations Contracts were enforceable obligations, (ii) upon expiration of the Fourth Amendment, the burden of maintaining, managing and operating Diamond Stadium under the Stadium Operations Contracts will fall onto the Successor Agency, and (iii) the Successor Agency lacks the personnel and the expertise to fulfil these contractual obligations. Both entities also found that the Restated Fifth Amendment is in the best interests of the affected taxing entities because the Storm's skills, knowledge and resources will provide continued, efficient and cost effective management, maintenance and operation of the Diamond Stadium, which will protect the public's investment in the Stadium, provide for continued maintenance of the Successor Agency's asset consistent with its enforceable obligations, minimize costs and mitigate against potential breach of contract and related damages. Following submittal to the Department of the Restated Fifth Amendment, the Department issued its final determination of the ROPS 18-19 denying the requested RPTTF for Stadium operations and finding that the Stadium Operations Contracts have expired. The Department also stated that its review of the Restated Fifth Amendment was not complete and therefore could not form the basis for an allocation of RPTTF. The Department's review of the Restated Fifth Amendment must be completed by July 2, 2018. Discussion The Successor Agency disagrees with the Department's determination and is evaluating all available options consistent with its position that the Stadium Operations Contracts are enforceable obligations through December 31, 2026. The scope and nature of these discussions is the subject of Successor Agency Closed Session. However, without Page 3 of 5 Stadium Operations, Maintenance & Management June 28, 2018 waiving the arguments supporting its position or alternative long-term actions, the Successor Agency must address immediate concerns relating to the ongoing operations, maintenance and management of the Stadium. As of the writing of this Report, the Department has not issued its determination of the Restated Fifth Amendment and the Successor Agency must consider alternatives to address next steps in the event of Department approval or denial. In the event the Department approves the Restated Fifth Amendment, the Successor Agency will have certainty as to Stadium operations and allocation of RPTTF through June 30, 2019. While the expiration of the Restated Fifth Amendment coincides with the fiscal year ROPS cycle, it falls in the middle of baseball season. In order to avoid the uncertainty and disruption resulting from the June 30 expiration, the Successor Agency and the Storm desire to extend the Restated Fifth Amendment for three months to September 30, 2019. The proposed extension will allow for ongoing operations, maintenance and management of the Stadium through the 2019 baseball season. No capital projects are proposed during the three-month extension period. The Successor Agency approved the proposed Extension at its June 26, 2018 meeting and directed staff to present the Extension to the Oversight Board with a recommendation to approve and to submit to the Department for review upon receipt by the Successor Agency of the Department's determination approving the Restated Fifth Amendment. Alternatively, if the Department rejects the Restated Fifth Amendment, the Successor Agency must provide for immediate short-term Stadium operations through the 2018 baseball season and for events scheduled through the 2018 calendar year. To address such immediate short-term operational concerns, the Successor Agency and the Storm propose a Second Restated Fifth Amendment for a six-month term through December 31, 2018. The proposed six-month Second Restated Fifth Amendment to the Stadium Interim Management Agreement provides for operations, maintenance and management consistent with the Restated Fifth Amendment, but defers all but two scheduled capital projects. The proposed capital projects are 1) improvements to the Diamond Club kitchen and 2) replacement of the Stadium elevator, both of which are immediately necessary to comply with health and safety regulations and ADA requirements. The proposed capital budget is $225,000. Other capital needs will be deferred during the proposed six-month term to allow the Successor Agency to fully evaluate the short-term and long-term options relating to the Stadium in light of the recent change in the Department's determination regarding RPTTF funding. The Successor Agency approved the Second Restated Fifth Amendment at its June 26, 2018 meeting and directed staff to present the Second Restated Fifth Amendment to the Oversight Board with a recommendation to approve and to submit to the Department for review only upon receipt by the Successor Agency of the Department's determination denying the Restated Fifth Amendment. Page 4 of 5 Stadium Operations, Maintenance & Management June 28, 2018 Attachments: A. Stadium History B. Resolution Approving An Extension To Restated Fifth Amendment To The Stadium Interim Management Agreement C. Extension To Restated Fifth Amendment To Stadium Interim Management Agreement D. Resolution Approving A Second Restated Fifth Amendment To The Stadium Interim Management Agreement E. 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OB-2018- A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AN EXTENSION TO THE RESTATED FIFTH AMENDMENT TO THE STADIUM INTERIM MANAGEMENT AGREEMENT Whereas, the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore ("Oversight Board") has been established to wind down the affairs of the former Redevelopment Agency of the City of Lake Elsinore in accordance with the California Health and Safety Code; and, Whereas, in 2012, the Successor Agency and the Oversight Board approved the Stadium Interim Management Agreement dated January 1, 2013 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Interim Agreement") in order to provide for the efficient and cost effective management, maintenance and operation of the Stadium pursuant to a License Agreement, a Stadium Field and Maintenance Agreement, and a Concession License Agreement (collectively, the "Stadium Operations Contracts") which were entered into by the former Redevelopment Agency in 2001/2002 and are enforceable obligations of the Successor Agency; and Whereas, following approval by the Oversight Board and the Successor Agency, the Interim Agreement was submitted to and approved by the State Department of Finance; and Whereas, in 2013, the Successor Agency and the Oversight Board approved the First Amendment to Stadium Interim Management Agreement dated January 1, 2014 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "First Amendment") and following such approval by the Oversight Board and the Successor Agency, the First Amendment was submitted to and approved by the State Department of Finance; and, Whereas, in 2014, the Successor Agency and the Oversight Board approved the Second Amendment to Stadium Interim Management Agreement dated January 1, 2015 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Second Amendment") and following such approval by the Oversight Board and the Successor Agency, the Second Amendment was submitted to and approved by the State Department of Finance; and, Whereas, in 2015, the Successor Agency and the Oversight Board approved the Third Amendment to Stadium Interim Management Agreement dated January 1, 2016 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Third Amendment") and following such approval by the Oversight Board and the Successor Agency, the Third Amendment was submitted to and approved by the State Department of Finance; and, Whereas, in 2016, the Successor Agency and the Oversight Board approved the Fourth Amendment to Stadium Interim Management Agreement dated January 1, 2017 by and between-the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Fourth Amendment") and following such approval by the Reso No. OB-2018-_ Page 2 of 3 Oversight Board and the Successor Agency, the Fourth Amendment was submitted to and approved by the State Department of Finance; and, Whereas, the Interim Agreement and the First, Second, Third and Fourth Amendments were listed on the Successor Agency ROPS and an allocation of Real Property Tax Trust Funds ("RPTTF") was approved allowing for the efficient and cost effective management, maintenance and operation of the Diamond Stadium pursuant to the Interim Agreement and the First, Second, Third and Fourth Amendments; Whereas, the Fourth Amendment expires June 30, 2018 and in order to provide for the continued efficient and cost effective management, maintenance and operation of the Diamond Stadium, the Oversight Board approved a Restated Fifth Amendment to the Interim Agreement ("Restated Fifth Amendment') on May 16, 2018 which was submitted to the State Department of Finance; and Whereas, the Successor Agency is awaiting determination by the State Department of Finance regarding the Restated Fifth Amendment which, if approved, will expire June 30, 2019; and Whereas, consistent with the legislative authorization contained in AB 1484 and SB 107 allowing successor agencies to enter into enforceable obligations for the purpose of maintaining the assets of the former redevelopment agency and implementing underlying contracts and agreements, the Successor Agency seeks to extend the Restated Fifth Amendment for three additional months to September 30, 2019 in order to provide for the continued, efficient and cost effective management, maintenance and operation of the Stadium and to avoid expiration of the Restated Fifth Amendment in the middle of the 2019 baseball season which would result in significant uncertainty, disruption and potential financial liabilities. NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Based on the information presented in the staff report and testimony received, the Successor Agency finds (i) that the Stadium Operations Contracts and the Restated Fifth Amendment are enforceable obligations of the Successor Agency, (ii) the proposed Extension to the Restated Fifth Amendment is reasonable and necessary to satisfy the Successor Agency's enforceable obligations and to protect and maintain the assets of the former Redevelopment Agency, (iii) that Real Property Tax Trust Fund revenues requested by the Successor Agency in the ROPS 18-19 included funds necessary to meet the Successor Agency's enforceable obligations and the amended ROPS 18-19 will request the shortfall in RPTTF, and (iv) that the Extension to the Restated Fifth Amendment is in the best interests of the taxing entities because the Storm's skills, knowledge and resources will provide continued, efficient and cost effective management, maintenance and operation of the Diamond Stadium which will protect the public's investment in the Stadium, provide for continued maintenance of the Successor Agency's asset consistent with its enforceable obligations, minimize costs, avoid the significant uncertainty, disruption and potential financial liabilities that would result from the expiration of the Restated Fifth Amendment in the middle of the 2019 baseball season and mitigate against potential breach of contract and related damages. Based on the above findings, the Successor Agency approves the Extension to Restated Fifth Amendment to the Reso No. OB-2018-_ Page 3 of 3 Stadium Interim Management Agreement by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP. Section 3. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this resolution are severable. The Oversight Board hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. Section 4. This Resolution shall take effect from and after the date of its passage and adoption in accordance with, and subject to, all applicable requirements of the Health & Safety Code. Passed, Approved and Adopted by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, this 28th day of June, 2018. Genie Kelley, Chair ATTEST: Susan M. Domen, MMC Oversight Board Secretary STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Susan M. Domen, MMC, Secretary of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, hereby certify that Resolution No. OB-2018- was adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore at a Special meeting held on the 28th day of June, 2018 by the following vote: AYES: NOES: ABSTAIN: ABSENT: Susan M. Domen, MMC Oversight Board Secretary EXTENSION TO RESTATED FIFTH AMENDMENT TO STADIUM INTERIM MANAGEMENT AGREEMENT This Extension to Restated Fifth Amendment to Stadium Interim Management Agreement ("Extension") is made and entered into as of , 2018 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore ("Successor Agency"), and the Lake Elsinore Storm LP, a California limited partnership ("Storm"). RECITALS A. The Successor Agency and the Storm entered into that certain Restated Fifth Amendment to Stadium Interim Management Agreement for Professional Services dated as of May 8, 2018 (the "Restated Fifth Amendment"). Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Restated Fifth Amendment. B. The Restated Fifth Amendment will expire June 30, 2019 which falls in the middle of the 2019 baseball season which would result significant uncertainty, disruption and potential financial liabilities. C. The Successor Agency and Storm desire to extend the term of the Restated Fifth Amendment to September 30, 2019 in order to provide for continued efficient and cost effective management, maintenance and operation of the Premises through the 2019 baseball season in accordance with the Restated Fifth Amendment. NOW, THEREFORE, incorporating the foregoing recitals herein, and in consideration of the mutual covenants and conditions set forth herein and in the Restated Fifth Amendment, Successor Agency and the Storm agree as follows: 1. Section 6.1 of the Interim Agreement, "Term" as amended by Section 3 of the Restated Fifth Amendment is hereby deleted in its entirety and replaced with the following: 6.1 Term. The term of this Interim Agreement (hereinafter the "Term") shall commence on the Effective Date and shall, unless earlier terminated in accordance with Sections 6.2, 19, or 20 hereof, shall expire September 30, 2019. 2. All references to "June 30, 2019" in the Restated Fifth Amendment shall be replaced with "September 30, 2019". 3. Except for the changes specifically set forth herein, all other terms and conditions of the Restated Fifth Amendment shall remain in full force and effect. [SIGNATURES ON NEXT PAGE] @BCL@603CCA65.docx 1 IN WITNESS WHEREOF, the parties have executed this Extension to Restated Fifth Amendment to Stadium Interim Management Agreement on the respective dates set forth below. "SUCCESSOR AGENCY" SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE Dated: By: Grant Yates, Executive Director ATTEST: SUCCESSOR AGENCY SECRETARY By: Susan M. Domen, MMC APPROVED AS TO FORM: LEIBOLD McCLENDON & MANN, P.C. Successor Agency Counsel By: Barbara Leibold "STORM" LAKE ELSINORE STORM LP, a California limited partnership By: GJJ STORM MANAGEMENT, LLC, a California limited liability company Its: General Partner Dated: By: Gary E. Jacobs, Manager @BCL@603CCA65.docx 2 RESOLUTION NO. OB-2018- A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE SECOND RESTATED FIFTH AMENDMENT TO THE STADIUM INTERIM MANAGEMENT AGREEMENT Whereas, the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore ("Oversight Board") has been established to wind down the affairs of the former Redevelopment Agency of the City of Lake Elsinore in accordance with the California Health and Safety Code; and, Whereas, in 2012, the Successor Agency and the Oversight Board approved the Stadium Interim Management Agreement dated January 1, 2013 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Interim Agreement") in order to provide for the efficient and cost effective management, maintenance and operation of the Stadium pursuant to a License Agreement, a Stadium Field and Maintenance Agreement, and a Concession License Agreement (collectively, the "Stadium Operations Contracts") which were entered into by the former Redevelopment Agency in 2001/2002 and are enforceable obligations of the Successor Agency; and Whereas, following approval by the Oversight Board and the Successor Agency, the Interim Agreement was submitted to and approved by the State Department of Finance; and Whereas, in 2013, the Successor Agency and the Oversight Board approved the First Amendment to Stadium Interim Management Agreement dated January 1, 2014 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "First Amendment") and following such approval by the Oversight Board and the Successor Agency, the First Amendment was submitted to and approved by the State Department of Finance; and, Whereas, in 2014, the Successor Agency and the Oversight Board approved the Second Amendment to Stadium Interim Management Agreement dated January 1, 2015 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Second Amendment") and following such approval by the Oversight Board and the Successor Agency, the Second Amendment was submitted to and approved by the State Department of Finance; and, Whereas, in 2015, the Successor Agency and the Oversight Board approved the Third Amendment to Stadium Interim Management Agreement dated January 1, 2016 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Third Amendment") and following such approval by the Oversight Board and the Successor Agency, the Third Amendment was submitted to and approved by the State Department of Finance; and, Whereas, in 2016, the Successor Agency and the Oversight Board approved the Fourth Amendment to Stadium Interim Management Agreement dated January 1, 2017 by and between the Successor Agency-of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the "Fourth Amendment') and following such approval by the Reso No. OB-2018-_ Page 2 of 3 Oversight Board and the Successor Agency, the Fourth Amendment was submitted to and approved by the State Department of Finance; and, Whereas, the Interim Agreement and the First, Second, Third and Fourth Amendments were listed on the Successor Agency ROPS and an allocation of Real Property Tax Trust Funds ("RPTTF") was approved allowing for the efficient and cost effective management, maintenance and operation of the Diamond Stadium pursuant to the Interim Agreement and the First, Second, Third and Fourth Amendments; Whereas, the Fourth Amendment expires June 30, 2018 and in order to provide for the continued efficient and cost effective management, maintenance and operation of the Diamond Stadium, the Oversight Board approved a Restated Fifth Amendment to the Interim Agreement ("Restated Fifth Amendment') on May 16, 2018 which was submitted to the State Department of Finance; and Whereas, the Successor Agency is awaiting determination by the State Department of Finance regarding the Restated Fifth Amendment which, if rejected, will expire June 30, 2018 in the middle of the 2018 baseball season causing significant disruption, uncertainty and potential financial liabilities; and Whereas, consistent with the legislative authorization contained in AB 1484 and SB 107 allowing successor agencies to enter into enforceable obligations for the purpose of maintaining the assets of the former redevelopment agency and implementing underlying contracts and agreements, the Successor Agency seeks provide for the continued, efficient and cost effective management, maintenance and operation of the Stadium and to retain the Storm to carry out such continuing obligations on an interim basis through December 31, 2018 in accordance with the proposed Second Restated Fifth Amendment to the Interim Agreement. NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Based on the information presented in the staff report and testimony received, the Successor Agency finds (i) that the Stadium Operations Contracts are enforceable obligations of the Successor Agency, (ii) that the proposed Second Restated Fifth Amendment to the Interim Agreement is reasonable and necessary to satisfy the Successor Agency's enforceable obligations and to protect and maintain the assets of the former Redevelopment Agency, (iii) that Real Property Tax Trust Fund (RPTTF) revenues requested by the Successor Agency in the ROPS 18-19 included funds necessary to meet the Successor Agency's enforceable obligations and the amended ROPS 18-19 will request the shortfall in RPTTF, and (iv) that the Second Restated Fifth Amendment to the Interim Agreement is in the best interests of the taxing entities because the Storm's skills, knowledge and resources will provide continued, efficient and cost effective management, maintenance and operation of the Diamond Stadium which will protect the public's investment in the Stadium, provide for continued maintenance of the Successor Agency's asset consistent with its enforceable obligations, minimize costs, avoid the significant uncertainty, disruption and potential financial liabilities that would result from the expiration of the Interim Agreement in the middle of the 2018 baseball Reso No. OB-2018-_ Page 3 of 3 season and mitigate against potential breach of contract and related damages. Based on the above findings, the Successor Agency approves the Second Restated Fifth Amendment to the Stadium Interim Management Agreement by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP in substantially the form attached and in such final form as approved by Successor Agency- Counsel and submitted to and approved by the Oversight Board. Section 3. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this resolution are severable. The Oversight Board hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. Section 4. This Resolution shall take effect from and after the date of its passage and adoption in accordance with, and subject to, all applicable requirements of the Health & Safety Code. Passed, Approved and Adopted by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, this 28th day of June, 2018. Genie Kelley, Chair ATTEST: Susan M. Domen, MMC Oversight Board Secretary STATE OF CALIFORNIA } COUNTY OF RIVERSIDE } ss. CITY OF LAKE ELSINORE } I, Susan M. Domen, MMC, Secretary of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, hereby certify that Resolution No. OB-2018- was adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore at a Special meeting held on the 28th day of June, 2018 by the following vote: AYES: NOES: ABSTAIN: ABSENT: Susan M. Domen, MMC Oversight Board Secretary SECOND RESTATED FIFTH AMENDMENT TO STADIUM INTERIM MANAGEMENT AGREEMENT THIS SECOND RESTATED FIFTH AMENDMENT TO STADIUM INTERIM MANAGEMENT AGREEMENT (the "Fifth Amendment"), dated for identification as of 2018, is made by and between the SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE ("Successor Agency"), and the LAKE ELSINORE STORM LP, a California limited partnership ("Storm"). RECITALS The following recitals are a substantive part of this Fifth Amendment: A. The City Council of the City of Lake Elsinore adopted a redevelopment plan (the "Redevelopment Plan") for an area within the City known as the Rancho Laguna Redevelopment Project Area 3 (the "Project Area") by way of its approval of Ordinance No. 815 on September 8, 1987, as thereafter amended by Ordinance No. 987 adopted on November 22, 1994. B. In furtherance of the Redevelopment Plan and that certain First Amendment to Amended and Restated Option Agreement Under Threat of Condemnation and Irrevocable Offer To Donate Stadium Site and Stadium Access Parcel and Unconditional Acceptance Subject To Covenants, Conditions, Restrictions and Reservations ("Offer to Donate") dated August 5, 1993, the former Redevelopment Agency of the City of Lake Elsinore acquired certain real property for redevelopment purposes and thereafter, in 1994, completed the "Lake Elsinore Diamond Stadium" on property donated for purposes of developing a minor league professional baseball stadium. C. In furtherance of the Redevelopment Plan and the covenants, conditions, restrictions and reservations set forth in the Offer to Donate restricting the use of the property as a minor league professional baseball stadium for a minimum of fifty years, the former Redevelopment Agency operated, managed and maintained the Lake Elsinore Diamond Stadium and the property (collectively, the Premises") pursuant to various agreements, including the Stadium Operations Contracts. D. Following the dissolution of the former Redevelopment Agency, the Successor Agency entered into that certain Stadium Interim Management Agreement dated January 1, 2013 (the "Interim Agreement") to provide for the performance of the enforceable obligations under the Stadium Operation Contracts and the Offer to Donate, including maintenance, management, promotion and operations of the Premises. Capitalized terms used herein which are not otherwise defined herein shall have the meaning ascribed to them in the Interim Agreement. E. The Interim Agreement was successfully implemented during calendar year 2013 to provide for efficient and cost effective management, maintenance and operation of the Premises. Second @BCL(a 603C6BC3.doc - 1 - F. In order to provide for continued efficient and cost effective management, maintenance and operation of the Premises for calendar year 2014, the Successor Agency and the Storm entered into that certain First Amendment (2014) to Stadium Interim Management Agreement dated September 24, 2013 (the "First Amendment"). G. In order to provide for continued efficient and cost effective management, maintenance and operation of the Premises for calendar year 2015,the Successor Agency and the Storm entered into that certain Second Amendment (2015) to Stadium Interim Management Agreement dated September 23, 2014 (the"Second Amendment"). H. In order to provide for continued efficient and cost effective management, maintenance and operation of the Premises for calendar year 2016,the Successor Agency and the Storm entered into that certain Third Amendment (2016) to Stadium Interim Management Agreement dated September 22, 2015 (the "Third Amendment"). I. In order to provide for continued efficient and cost effective management, maintenance and operation of the Premises for January 1 2017 — June 30, 2018, the Successor Agency and the Storm entered into that certain Fourth Amendment (2017-2018) to Stadium Interim Management Agreement dated September 27, 2016 (the"Fourth Amendment"). J. The obligations set forth in the Interim Agreement, First Amendment, Second Amendment, Third Amendment and Fourth Amendment have been included in prior Recognized Obligation Payment Schedules (ROPS) approved by the Successor Agency, the Oversight Board of the Successor Agency("Oversight Board") and the Department of Finance ("DOF"). K. The Fourth Amendment will expire on June 30, 2018 and the parties desire to enter into this Second Restated Fifth Amendment to provide for the immediate continued efficient and cost effective management, maintenance and operation of the Premises for the period commencing July 1, 2018 through December 31, 2018. L. Capital repairs necessary to protect the structural components and operational systems of the twenty-four (24) year old Stadium and to protect the safety of the players and the spectators consistent with applicable laws and NAPBL standards will be deferred to the maximum extent possible during the term to provide for ongoing discussions regarding long- term Stadium operations. M. In accordance with Health and Safety Code ("HSC") Section 34177(o)(1), the Successor Agency adopted and submitted to DOF a Recognized Obligation Payment Schedule ("ROPS") for the period from July 1, 2018 through June 30, 2019 which includes the Successor Agency obligations set forth in this Fifth Amendment and lists, among other things, as enforceable obligations of the Successor Agency, the following obligations related to the Premises as more fully described and referenced therein: (i) Concession License Agreement, as amended("Concession Agreement"); (ii) License Agreement, as amended("License Agreement"); (iii). Stadium Field and Maintenance Agreement, as amended ("Maintenance Agreement"); Second @BCL@603C6BC3.doc -2 - (iv) Stadium operations and maintenance obligations; and (v) the Interim Agreement. N. Consistent with the legislative authorization contained in HSC Section 34171 allowing successor agencies to enter into enforceable obligations for the purpose of maintaining the assets of the former Redevelopment Agency and implementing underlying contracts and agreements, the Successor Agency seeks to (a) enter into this Second Restated Fifth Amendment in order to provide for the continued, efficient and cost effective management, maintenance and operation of the Premises and to avoid expiration of the Fourth Amendment in the middle of the 2018 baseball season which would result in significant uncertainty, disruption and potential financial liabilities, and (b) retain the Storm, which possesses the experience and qualifications to continue to carry out such obligations. O. In furtherance of the purpose and intentions of the parties with respect to the Interim Agreement,the parties hereto agree to amend the Interim Agreement as provided herein. AGREEMENT NOW THEREFORE, in consideration of the foregoing Recitals and the terms contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,the parties do hereby agree as follows: 1. Review Meetings. Section 2.4 of the Interim Agreement, entitled "Review Meetings"is hereby amended and restated in its entirety as follows: 2.4 Review Meetings. (a) Monthly Meetings. As often as necessary, but in no event less than one time per month during the Maintenance Term, the General Manager, or designee, and the Executive Director, or designee, shall meet at a mutually agreed upon time and place in order to discuss the condition of the Stadium and the performance of the Storm hereunder and any other applicable issues. (b) Annual Inspection/Facilities Review. During September 2018, the General Manager, or designee, and the Executive Director, or designee, shall (i) inspect the Stadium and conduct a facilities review to assess the condition of the Stadium and capital repair needs, and (ii) review the annual revenues and operating expenses for the July 1, 2017- June 30, 2018 to assess operational efficiencies. Prior to December 31, 2018, the General Manager, or designee, and the Executive Director, or designee, shall complete an Annual Operating Budget and Schedule of Capital Repairs, including estimated costs, for the 2019 calendar year. 2. Utilities. Section 5 of the Interim Agreement, entitled "Utilities" is hereby amended and restated in its entirety as follows: 5. Utilities. Notwithstanding any contrary provision contained in the Stadium Operations Contracts, the Storm shall be responsible for the payment of Second @BCL@603C6BC3.doc - 3 - all Utilities regardless of whether the utility account is in the name of the Storm, the Successor Agency or City of Lake Elsinore. The Storm agrees to cooperate with the Successor Agency to explore ways to incorporate the use of or replace existing systems with alternative clean energy and to improve energy efficiency, including electrical utility savings by way of power purchase agreements through the Southwest Riverside County Energy Authority. An energy assessment will be conducted during the Annual Inspection/Facilities Review pursuant to Section 2.4(b) and an amount equal to any savings accounted for from the prior fiscal year shall be subtracted from the Additional Interim Management Fee to be paid for the following fiscal year pursuant to Section 7.2(d). 3. Term of Agreement; Termination. Section 6 of the Interim Agreement, entitled "Term of Agreement; Termination," is hereby deleted in its entirety and replaced with the following: 6. Term of Agreement; Termination 6.1. Term. The term of this Interim Agreement (hereinafter the "Term") shall commence on the Effective Date and shall, unless earlier terminated in accordance with Sections 6.2, 19, or 20 hereof, shall expire December 31, 2018. 6.2. Rights of Termination. (a) Default. The Successor Agency and Storm shall have the right to terminate this Interim Agreement as a result of an uncured Default hereunder. Any such termination shall be made in accordance with Sections 19 or 20. (b) Party's Property and Offset. Upon termination of this Interim Agreement under this Section 6.2, all materials and equipment purchased by either parry hereunder in connection with this Interim Agreement shall remain that parry's property. In addition, the Storm shall be entitled to payment for all of the Storm=s services rendered hereunder through the effective date of any such termination. 4. Stadium Use. Section 4.3 of the Interim Agreement, entitled "Stadium Use," is hereby deleted in its entirety and replaced with the following: 4.3. Stadium Use. (a) Storm Games. During the Term, the Storm shall play its home baseball games at the Stadium, including pre-season, regular season and play-off games as scheduled by the League and shall have the right to use the Stadium for baseball practices and workouts. Upon receipt from the League,but in no event later than the 151h of November of each year during the Term, the Storm will provide the Executive Director of the Successor Agency with the written, proposed schedule for all professional baseball games involving the Storm for the coming baseball season including all pre- season games, a reasonable number of dates to be held for playoff games, as required by the League, and practices and workouts (collectively,the AStorm Games@). Second @BCL@603C6BC3.doc -4- (b) Other Storm Events. In addition to the use of the Stadium for the Storm Games, the Storm shall have the right to use the Stadium for non-baseball related exhibitions, ceremonies or events (the AOther Storm Events@) on dates which the Stadium is not otherwise in use for Storm Games or other reserved uses, at its sole cost and expense, without any additional license fee or charge incurred, except for Storm's obligation with respect to maintenance as provided herein and subject to the conditions set forth below. i. Lake Elsinore Diamond Stadium. All promotional and marketing materials for all Other Storm Events shall include the name "Lake Elsinore Diamond Stadium." ii. Special Event Permit. The Storm shall obtain a Special Event Permit for all Other Storm Events from the City of Lake Elsinore in accordance with Chapter 5.108 of the Lake Elsinore Municipal Code, as now exists or as may hereafter be amended, including submittal of an application not less than sixty (60) days prior to the event and compliance with the Special Event Permit Requirements for Other Storm Events (Exhibit "D" attached hereto and incorporated by reference herein) and such additional conditions of approval as may be deemed necessary or appropriate by the City in connection with the issuance of a Special Event Permit for the Other Storm Event. Concurrent with the submittal of the special event application package to the City, the Storm shall notify the Executive Director in writing of the proposed date and title of the Other Storm Event and a promotional/marketing plan demonstrating the anticipated attendance. ii. Governmental Regulations/Permits. The Storm shall comply with all applicable local, state, and federal laws, ordinances, rules, regulations and requirements (including without limitation land use and zoning, environmental, labor and prevailing wage, occupational Health & Safety, building and fire codes) in connection with the promotion and operation of Other Storm Events and shall apply for, secure, maintain and comply with all required licenses and/or permits. The Storm shall use commercially reasonable efforts to cause any users of the Stadium to report and pay sales taxes as generated within the City in accordance with all applicable laws. iii. Quality Standards. The Storm shall conduct Other Storm Events in accordance with the highest standards for cleanliness and quality and shall comply with all applicable terms and conditions of this Agreement and the Stadium Operations Contracts. (c) City/Agency Use. The Successor Agency, for itself and on behalf of the City of Lake Elsinore, reserves the right to use the Stadium, including without limitation, the Agency Suite, the Diamond Club and conference room for meetings, conferences and other events provided the Successor Agency notifies the Storm in advance. Notwithstanding the foregoing, the Storm shall have the right to use the Stadium on the days set forth in the schedule for the Storm Games and for Other Storm Events approved in accordance with the provisions of Section 4.3 (b) and the Successor Second @BCL@603C6BC3.doc - 5- Agency will not schedule any other events at the Stadium on the day of a Storm Game or other Storm Event if such event would interfere with the Storm=s use of the Stadium. (d) Agency Suite. For all Storm Games and Other Storm Events, free of any charge to Successor Agency, the Storm shall (i) secure and deliver to the Successor Agency tickets and parking passes for use of the Agency Suite, or (ii) provide reasonable alternative methods of access to the Agency Suite and Agency Parking. In the event the Successor Agency elects not to use the Agency Suite for any Other Storm Event, the Storm, including its representatives and invitees, may use the Agency Suite. The Storm shall indemnify and hold the Successor Agency and the City harmless from any loss, cost or expense or damage to Successor Agency property associated or in connection with use of the Agency Suite by third parties. 5. Compensation. Section 7 of the Interim Agreement, entitled"Compensation," is hereby deleted in its entirety and replaced with the following: 7. Compensation 7.1. Stadium Operations Contracts Compensation Recap. Pursuant to the Stadium Operations Contracts, the Storm and/or the Successor Agency are entitled to compensation during the Term as follows: (a) License Fee: Under the License Agreement, the Storm is required to pay to the Successor Agency a License Fee in the amount of$261,236 for the period commencing July 1, 2018 through December 31, 2018. (b) Percentage of Concessions: Under the Concession Agreement, the Storm's affiliate, Golden State, is required to pay Successor Agency a percentage of the GRCS pursuant to Section 6 thereof(the "GRCS Concession Fee."). (c) Annual Maintenance Fee: Under the Maintenance Agreement, Successor Agency is required to pay Storm an Annual Maintenance Fee in the amount of$121,956 for the period commencing July 1, 2018 through December 31, 2018. 7.2. Storm Compensation. Commencing upon the Commencement Date (July 1, 2018), and continuing through the expiration of the Term, as consideration for the performance of the services set forth herein, the Storm shall be compensated as follows: (a) Assignment of GRCS Concession Fee. Successor Agency hereby assigns Successor Agency's right to payment of the GRCS Concession Fee under the Concession Agreement to the Storm during the Term, estimated at$17,000; and (b) Waiver of License Fee. Successor Agency hereby waives Successor Agency's right to payment of the License Fee under the License Agreement during the Term as an offset against the payments due by the Successor Agency to the Storm hereunder; and Second @BCL@603C6BC3.doc - 6- (c) Payment of Annual Maintenance Fee. Successor Agency shall continue to pay the Annual Maintenance Fee as identified in Section 7.1(c) (i.e., of $121,956 for the period commencing July 1, 2018 through December 31, 2018. (d) Payment of Additional Interim Management Fee. Successor Agency shall pay to Storm an "Additional Interim Management Fee" in the amount of $234,073 for the period commencing July 1, 2018 through December 31, 2018,which shall be payable in equal monthly installments. The Annual Maintenance Fee together with the Additional Interim Management Fee will result total cash payment from the Successor Agency to the Storm of $356,029 for the period commencing July 1, 2018 through December 31, 2018 as consideration for services provided under the Stadium Operations Contracts and this Interim Agreement, which aggregate amount shall be payable in equal monthly installments of$59,338 for the period commencing July 1, 2018 through December 31, 2018. The Storm acknowledges and agrees that in no event will the Successor Agency be required to provide the Storm with any other form of payment for performance of the services as provided in this Interim Agreement. The parties acknowledge that the historic operating costs of the Stadium equal or exceed the compensation due to Storm hereunder and that it is in each of the party's best interests to enter into this Agreement for the efficient use and operation of the Stadium. 6. Capital Repairs. Section 8 of the Interim Agreement, entitled"Capital Repairs," is hereby deleted in its entirety and replaced with the following: 8. Capital Repairs. To the maximum extent allowable the Capital Repairs set forth in the Capital Repair Schedule (Exhibit "C") shall be deferred to allow the parties to evaluate and discuss long-term Stadium operations; provided, however, the two items with estimated costs in the aggregate amount of two Hundred Twenty-Five Thousand Dollars ($225,000) are immediately necessary to comply with health and safety regulations and ADA requirements and shall be budgeted for the period commencing July 1, 2018 through December 31, 2018. Prior to December 31, 2018, the General Manager, or designee, and the Executive Director, or designee, shall review, update as necessary, and complete the projected Capital Repair Schedule in accordance with Section 2.4(b). The Executive Director or designee will designate certain Capital Projects that shall be subject to the Department of Public Works' direct administration of the bid process and award of contract consistent with the applicable legal requirements. The Storm will undertake and complete such other Capital Repairs as set forth in Exhibit "C" only as are mutually agreed in writing. To the extent that The Storm undertakes such other Capital Repairs not undertaken by the Successor Agency, The Storm shall obtain not less than three (3) bids from qualified contractors unless otherwise excused by the Executive Director. Without limiting the Second @BCL@603C6BC3.doc - 7- Executive Director's discretion, the bidding requirement herein may be excused in situations involving emergencies and sole source contractors. In addition, The Storm acknowledges the general requirement that certain Capital Repairs are subject to the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates with respect to certain capital improvements, repairs and maintenance work paid for in whole or in part out of public funds. Accordingly, The Storm agrees to, in the administrative of the bidding and contractor selection process, inform prospective bidders of the requirement to comply with the Prevailing Wage Laws. The Storm may confer with the Executive Director and seek direction with respect to whether or not a certain Capital Repair is subject to the Prevailing Wage Law. Prior to The Storm awarding a contract for a Capital Repair to a qualified contractor, the Executive Director shall: (i) confirm that The Storm has followed the proper bidding procedures for selection of a contractor; and(ii) approve the selection of the contractor and the form of any agreement between The Storm and the contractor. Upon completion of the Capital Repair (or a component thereof supporting a deposit or in-progress reimbursement), The Storm shall deliver to the Executive Director a written reimbursement request and supporting documentation (such as third party invoices, lien releases and cancelled checks). To the extent that the reimbursement request is for a completed Capital Repair, The Storm shall, if applicable, submit as-built drawings or similar plans and specifications for the items to be reimbursed. 7. Insurance. Section 10 of the Interim Agreement, entitled "Insurance" is hereby amended and restated in its entirety as follows: 10. Insurance. The Storm shall maintain insurance as set forth in Section 13 of the License Agreement at all times during the term of this Interim Agreement. In addition, the Storm shall maintain liquor liability coverage in an amount not less than $5 million at all times during the term of this Interim Agreement. The liquor liability coverage required pursuant to this Section 10 -shall be separate from the coverage that may be required by the City of Lake Elsinore as a condition of approval to a Special Event Permit obtained in accordance with Section 4.3(b)herein. 8. City Manager/Executive Director. The City Manager of the City of Lake Elsinore serves in the capacity as Executive Director of the Successor Agency and all references to "City Manager" in the Interim Agreement shall be synonymous with "Executive Director" as used in this Fifth Amendment and vice versa. 9. Accuracy of Recitals. The Parties acknowledge the accuracy of the foregoing Recitals, which are incorporated herein by this reference. Second @BCL@603C6BC3.doc - 8 - 10. Authority; Priority of Amendment. This Fifth Amendment is executed by the Parties' authorized representatives. Except as expressly modified herein, all of the terms of the Interim Agreement shall remain unchanged and in full force and effect, and the Parties shall continue to fulfill their respective obligations under the Interim Agreement as amended by this Fifth Amendment. To the extent of any conflict between the terms of the Interim Agreement and the terms of this Fifth Amendment,the terms of this Fifth Amendment shall control. 11. CatMons. The captions appearing in this Fifth Amendment are for convenience only and are not a part of this Fifth Amendment and do not in any way limit, amplify, define, construe, or describe the scope or intent of the terms or provisions of this Fifth Amendment. 12. Counterparts. This Fifth Amendment may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute but one and the same document. 13. Commencement Date. The provisions of this Second Restated Fifth Amendment shall commence on July 1, 2018 (the"Commencement Date"). [SIGNATURES ON NEXT PAGE] Second @BCL@603C6BC3.doc - 9- IN WITNESS WHEREOF, the parties have executed this SECOND RESTATED FIFTH AMENDMENT TO STADIUM INTERIM MANAGEMENT AGREEMENT on the respective dates set forth below. "SUCCESSOR AGENCY" SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE Dated: By: Grant Yates, Executive Director ATTEST: SUCCESSOR AGENCY SECRETARY By: Susan M. Domen,MMC APPROVED AS TO FORM: LEIBOLD McCLENDON&MANN,P.C. Successor Agency Counsel By: Barbara Leibold "STORM" LAKE ELSINORE STORM LP, a California limited partnership By: GJJ STORM MANAGEMENT, LLC, a California limited liability company Its: General Partner Dated: By: Gary E. Jacobs,Manager Second @BCL@603C6BC3.doc - 1 0 - EXHIBIT "C" CAPITAL REPAIR SCHEDULE DIAMOND STADIUM CAPITAL REPAIR SCHEDULE DESCRIPTION Estimate Amount Budgeted CONCESSION STAND#3 - COMPLIANCE $295,000 $0 - deferred HEALTH CODE REPLACE APPLIANCES IN CONCESSION $75,000 $0 -deferred - STAND#3 STEEL BEAMS IN RAFTERS-REPLACEMENT $350,000 $0-deferred SIDEWALK REPAIRS/REPLACEMENT $100,000 $0—deferred UTILITY BOXES -REPAIRS/REPLACEMENT $170,000 $0—deferred SECURITY SYSTEM REPLACEMENT $119,950 $0- deferred SUITE CABINET REPAIRS/REPLACEMENT $495,000 $0 - deferred UNDERGROUND SEWER AND PLUMBING $450,000 $0 - deferred PIPE REPAIRS PRESS BOX AND INTERNAL BROADCAST $250,000 $0 - deferred SOUND SYSTEM DIAMOND CLUB KITCHEN-COMPLIANCE $75,000 $75,000 HEALTH CODE MAINTENANCE CREW-EQUIPMENT $130,000 $0- deferred REPLACEMENT ELEVATOR REPLACEMENT $150,000 $150,000- $2,659,950 $225,000 EXHIBIT "C" EXHIBIT "D" LAKE ELSINORE DIAMOND STADIUM SPECIAL EVENT PERMITS REQUIREMENTS OTHER STORM EVENTS 1. Spectator Parking and Attendants: a. The location of spectator parking is designated as the Diamond Stadium Parking lot(s)A & C. Parking Lot D is available excluding the fenced habitat area. b. Parking Lot D must be cleared of all weeds, graded and properly stripped with parking stalls and travel lanes. c. Appropriate Staffing for parking fees and direction is required. 2. ADA Compliant: a. Provide ADA Accessible Parking as close as practicable to the tract and admission area. b. Provide ADA Restrooms as near as practicable to the track and concession stands. c. Have personnel ready to assist handicap patrons as needed. 3. Event Access: a. Event access shall be coordinated with City Public Works Department Staff. b. No modifications to dirt right of way are permitted(levee,Malaga Rd). c. During hours of event operation,no vehicles shall be permitted to drive into, around, inside or leave the Event(base area). d. Access across private property for the Event Obstacle Course and Parking shall be secured with notarized right of entry permission. 4. Vendors &Exhibitors: a. All vendors selling food shall have the appropriate Riverside County Health Department Permits and submit to the Special Events Coordinator 20 days prior to event. b. All vendors selling products/services are required to maintain a City of Lake Elsinore Business License during the duration of the event (for convenience, the City offers one-day business licenses). c. A minimum of an eight-foot aisle way shall be provided between concessions, waste and sanitation facilities. d. Food vendors shall provide the equivalent of two 30-gallon trash containers within ten(10) feet of their concessions. e. Organizers shall provide one (1) standard booth space free of charge to the City. 5. Removable Fencing a. All removable fencing (bike or concert) must be secured as on immovable object. Each section must be secured so it cannot be broken, separated or moved by patrons. The Fire Marshal and Law Enforcement representative shall inspect the fencing prior to gates-opening for the event. EXHIBIT "D" 6. Crowd Control: a. All security officers must be crowd control trained. 7. Generators: a. All liquid fuel generators shall have secondary containment and a spill kit located within 100 feet of the secondary containment. 8. Amplified Sound&Noise Level: a. Amplified sound, live music and performances are permitted during the event. b. The Organizers shall not violate the City's noise ordinance by disturbing the peace. 9. ABC Licensing and Permits: a. ABC Application to be submitted to the Sheriff s Department no later than 20 days prior to the event. b. Applicant must comply with any and all requirements regulations indicated by the Department of Alcoholic Beverage Control. The issuance of an ABC letter is conditional and is subject to revocation for any violation of the Alcohol Beverage Control Act or other state law. Adequate security measures must be in place to secure all alcoholic beverages from patrons and to prevent accessibility to minors. i. Beer-ID checks on all persons 21 years and older wishing to purchase alcohol AND PUT A WRISTBAND ON EVERY PERSON 21 YEARS OR OLDER. H. Limit of one (1) alcohol beverage per person per sale. iii. Alcohol sales to cease one (1)hour prior to end of event 10. Event Staffing: a. Applicant will provide a detailed security plan indicating security staffing levels and assignments subject to Sheriffs approval 20 days prior to the event. 11. Law Enforcement: To Be Determined Based on Dates, Times, Location&Anticipated Attendance a. Motor Officers - b. Officers- c. Sheriff Sgt. - d. Mileage- 12. Accessibility of Law Enforcement and Emergency Responders: a. There shall be unobstructed access ways into the event for Law Enforcement and other emergency responders. There shall be clearly marked, unobstructed exits for patrons in the case of an emergency or the need for evacuation arises. 13. The Fire Safety requirements of the Lake Elsinore Fire Protection Planning are hereby referenced as a separate attachment and incorporated herein as part of the City's conditions of approval. EXHIBIT "D" 14. Traffic Control: a. Traffic Control implementation and operation shall be according to the California Manual of Uniform Traffic Control Devices (CAMUTCD) or another City approved plan. b. Signal timing coordination may be required at the discretion of the City Traffic Engineer. c. Provide diagram in support of sufficient parking(i.e approx. 3,500 spaces for attendance of 10,000)—to be adjusted based on anticipated attendance. 15. Portable Toilets and Wash Stations: a. All portable toilets and rinse stations shall be placed on level ground, be anchored and have secondary containment. b. Provide sufficient#of portable toilets (regular and ADA accessible) for anticipated event turnout. Contact your rental source for guidance. 16. Trash and Clean-Up: a. CR&R has an exclusive franchise for trash service in the City. They shall be used for trash containers for recycled and non-recycled trash/waste and for trash disposal. b. Regular and recyclable trash containers shall be placed throughout the Vendor Village (aka Lot B) and parking lots (aka Lots A, C and D). c. Clean-up of Lot B, Vendor Village shall be accomplished using dry clean-up methods; in the event wet clean-up is warranted, catch basins shall be protected and at no time shall runoff be directed to the Levee/Lake area. d. Best Management Practices shall be implemented during clean-up; no discharge into the Lake or City storm drain system is allowed. e. Organizers are responsible for same day clean-up of any tracking from the Event onto City streets (Diamond Circle,Malaga Road, Pete Lehr Drive,etc.) 17. Environmental: a. Organizers are responsible for ensuring that pollutants from the event do not enter the lake. City Municipal Code 14.08 defines "Pollutant"as: "Pollutant"means anything which causes the deterioration of water quality such that it impairs subsequent and/or competing uses of the water. Pollutants may include but are not limited to paints, oil and other automotive fluids, soil,rubbish, trash, garbage, debris, refuse,waste, hazardous waste, chemicals, animal waste, offensive matter of any kind. b. If event dirt is imported from outside the back basin area, it shall be removed from the back basin area after the event. i. A haul route is required for all import. ii. Hauling from a site in within the City limits requires a grading permit on the export site. i i i. For import of more than 5,000 cubic yards, City Council Approval is required. c. If event dirt is-secured from within the back basin area, it may be returned to the source. All disturbed areas shall be returned to the pre-disturbance condition as closely as possible. d. Catch basins in the field maintenance area shall be protected from event related EXHIBIT "D" discharge. e. If a rain event is forecast(10% chance or better) or occurring during a scheduled event, off site catch basins at Pete Lehr and Malaga Road shall be protected. 18. Insurance: a. The Organizer(s) shall provide the City with a certificate(s) of insurance in the following amounts (subject to change based upon review of Special Event Permit Application): ❑ General Aggregate Per Event: $5,000,000 ❑ Auto Liability: $1,000,000 ❑ Workers Comp: $1,000,000 ❑ Alcohol: $5,000,000 b. The Organizer's shall use the following additionally insured statement: City of Lake Elsinore its officers, elected and appointed officials, officers, agents, and employees are named as additional insured per attached ISO form CG201011 85. 19. Promotion/Marketing Plan: a. The Organizer(s) shall provide the City with a promotional/marketing plan demonstrating the anticipated attendance. b. All promotional/marketing materials shall include the name"Lake Elsinore Diamond Stadium." 20. The City assumes no responsibility for event related damage or repairs to the Stadium. 21. Summary of Fees: City Permit Application Processing Fee: Prevailing Rate as of Application Date City Refundable Security Deposit Fee: " City Department Inspection Fee: " Sheriffs Law Enforcement Fees (Paid to RSO): " 22. The Special Event Permit may be revoked summarily by the City for non-compliance with any of these conditions as set forth above. Required information/documentation due no later than twenty(20) days prior to the event to the City of Lake Elsinore Special Event Coordinator: ❑ Conditions of Approval(2 copies with wet signatures and initials) ❑ Payment of Event Fees ❑ Security Deposit(on-file) ❑ Vendor List ❑ Business License(s) ❑ Health Department Permit ❑ Insurance Documentation ❑ Fire Safety Plan ❑ Traffic Control Plan EXHIBIT "D"