Title
Consider a memorandum/resolution approving an agreement with Zenner USA awarding naming rights for the Family Aquatics Center and four athletic fields within the Killeen Athletic Complex.
Body
DATE: May 20, 2025
TO: Kent Cagle, City Manager
FROM: Antonio Murphy, Executive Director of Parks and Recreation
SUBJECT: Award naming rights to Zenner USA for the Family Aquatics Center and the choice between four athletic fields
BACKGROUND AND FINDINGS:
On January 21, 2025, the City Council awarded RFP-25-03, Consultant for City Park Facilities Sponsorship agreements, to Sportsman Solutions. The scope of services includes evaluating the City’s facilities to determine their naming rights values and documenting the methodology used for these assessments. A flat commission pricing structure applies to all service phases, with 20% of the gross commissions allocated to Sportsman Solutions and 80% to the City. All agreements proposed by Sportsman Solutions would be submitted for a vote and must receive approval from the City Council.
Sportsman Solutions engaged in discussions with Zenner USA about securing naming rights for the Family Aquatics Center and four athletic fields within the Killeen Athletic Complex. The proposed agreement entails a commitment of $25,000 dollars per year for five years, with the option for two additional five-year terms. The City would retain $20,000 annually, potentially totaling $300,000 after the commission to Sportsman Solutions is deducted. Additionally, the estimated cost for signage is $5,925, which will be shared equally between the City and Zenner USA, resulting in a cost of $2,963 for the City.
After careful review, the staff has concluded that this initiative will generate valuable revenue for the Parks Department. It enhances funding for aquatic facilities and programs, increases marketing opportunities, and fosters community partnerships. This revenue also allows for the development of new programs and special events, boosts participation, and enhances the division’s credibility through association with reputable sponsors. Overall, it strengthens the aquatics division’s impact and reach within the community.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to state and local policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
$25,000 dollars per year for the next five years, with the option for two additional five-year extensions at the same price point. The City would retain $20,000 annually, potential totaling $300,000 after the commission to Sportsman Solutions is deducted.
Is this a one-time or recurring revenue/expenditure?
Recurring: Annual sponsorship revenue account ($25,000) and commission expense (20%)
One-time: City’s estimated portion of signage costs ($2,963 in FY25).
Is this revenue/expenditure budgeted?
No, this program was not included in the FY 2025 budget.
If not, where will the money come from?
Revenue and expense budgets will be included in the year-end budget amendments, based on this contract.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Upon approval of this resolution, funding will be added through the year-end budget amendment in the Parks and Recreation Special Revenue Fund as follows:
Revenue: Naming Rights Account 260-44120-300-301-660010
Commission to Sportsman Solutions: Professional Services Account 260-54250-300-301-660010
City’s share of signage costs: Capital Outlay Account 260-56415-300-301-660010.
RECOMMENDATION:
Staff recommends City Council approve the agreement awarding naming rights to Zenner USA for five years with the option for two additional five-year terms, and that the City Manager or designee be authorized to execute all contract documents and any and all change orders as allowed per State law.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Contract Verification
RS-25-009
Agreement
Certificate of Interested Parties
Presentation