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HomeMy WebLinkAbout2026-06-23 - AGENDA REPORTS - THE CUBE OPERATOR AGMT AMENDAgenda Item• 22 CITY OF SANTA CLARITA W AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: June 23, 2026 SUBJECT: THE CUBE ICE AND ENTERTAINMENT CENTER OPERATOR AGREEMENT AMENDMENT DEPARTMENT: Recreation and Community Services PRESENTER: Kyle Lopez RECOMMENDED ACTION City Council: Authorize an amendment to the existing agreement with JV Ice at the Cube, LLC to extend the term until September 30, 2026, for management of The Cube Ice and Entertainment Center and increase expenditure authority in the amount $644,379, for a total contract amount not to exceed $3,175,783. 2. Authorize the City Manager or designee to execute the contract amendment and all associated documents, subject to City Attorney review. BACKGROUND On February 23, 2021, the City Council awarded a five-year contract to JV Ice at the Cube, LLC (JVI) for the management and operation of The Cube Ice and Entertainment Center (The Cube). The City of Santa Clarita (City) and JVI are opting to exercise one of the five-year renewals and have been negotiating a new agreement that reflects updated operational and financial provisions based on the facility's first five years of operation. While City staff has been working toward bringing a finalized agreement to the City Council for consideration, JVI recently informed the City that additional time is needed to complete its review of the proposed terms. As a result, the parties will not be able to finalize negotiations of a new agreement and complete legal review prior to the expiration of the current agreement on June 30, 2026. To ensure continuity of facility operations and management services while negotiations are completed, staff recommends a three-month extension of the existing agreement through Page 1 Packet Pg. 151 September 30, 2026. The extension will allow sufficient time for the City and JVI to finalize a new agreement, complete legal and bond counsel review, and return to the City Council with a newly negotiated agreement anticipated for consideration in August 2026. In addition, the amendment would increase the contract expenditure authority from $2,531,404 to $3,175,783 to cover the additional three months of operational and management services during the extension period. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT The resources required to implement the recommended action are contained within the City of Santa Clarita's adopted FY 2026-27 budget. Page 2 Packet Pg. 152