Lions Club tubing lease under review

The San Marcos Parks and Recreation Advisory Board will review the City of San Marcos’ lease with the Lions Club Tube Rental, after concerns that the lease was not in the best interest of the citizens or the river. 

The Lions Club has leased the property and run the tube rental since 2011 after voters passed a proposition for the allowance of the long-term lease in 2010, but the parks board members believe that the frequency with which it runs and the rate of rent may be unfavorable to the river's ecology and residents.

At a monthly rate of $900, the lease is up for renewal in April. The lease has historically been signed in five-year increments, however, the parks board will consider shortening the next lease term, while they consider and potentially prepare to put the contract out for competitive bid. 

“Our role is to advise on the uses within the park and to advise on how revenue is recaptured,” board member Ryan McGillicuddy said. “Is the city getting the best bang for their buck off of an organization that is monetizing a use within the park? To the extent that that lease is fair or not, I think it's up to the city to negotiate. If it's in the city’s best interest to have a competitive bidding process, then that is a recommendation we can make?”

The committee brought forward a draft resolution making some recommended changes to the lease, which the San Marcos City Council would have to consider on its own. 

The resolution suggests limiting the days of operation to provide the river with a recharge from the tubing operation and allow citizens to utilize the river for active recreation. It also asks for an employee to be dedicated to trash pickup from the riverbed two hours each day. 

In light of city budget shortfalls, including recent parks fee increases and new paid parking, another part of the resolution suggests that the $900 monthly rate is not competitive and could be increased. If not a rental rate increase, the resolution proposes a surcharge per tube rental and shuttle ride.

The committee also asked for full transparency on revenue generated on the property in a bi-annual report detailing where the proceeds go. 

The Lions Club provided a list of 98 community organizations, including CASA of Central Texas, Hays County Brown Santa and the San Marcos River Foundation, to which it donates around $400,000 of its $1 million revenue. The organization pays around $500,000 in operating expenses and salaries annually.

After reviewing financials and the resolution, board member Frank Contreras raised a point that the contract may not be in the city’s best interest if there is no competitive process. 

Director of the Parks Department Drew Wells said the Lions Club does not have the exclusive rights to run the tube rental operation. The proposition that was passed in 2010 allowed for additional renewals of the lease every five years, subject to city council approval.

“If it's competitive, the Lions Club might win the bid each three years, but it may be more favorable for the city, with additional stipulations,” McGillicuddy said.

Lions Club President Dennis Gutierrez declined to answer a question during the meeting about whether the organization would be open to a competitive bidding process and said he would have to speak to his subcommittee members before responding.

After discussing potential unintended consequences and startup costs to a potential new vendor, the board members opted to send the lease back to the committee to work on making the current lease with the Lions Club more favorable to the city, and coming back to consider recommending a competitive process in the future. 

“The Lions Club is good for the community,” said board chair Diane Phalen. “I think they do a good job of the tube business. I think there were concerns about the city’s kind of beholden to them because they provide the rangers, it seems like the city isn’t getting a fair shake.”