Item No. 5
Town of Atherton
CITY COUNCIL STAFF REPORT – CONSENT AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: ROBERT OVADIA, PUBLIC WORKS DIRECTOR
DATE: SEPTEMBER 16, 2026
SUBJECT: FOURTH AMENDMENT TO THE AGREEMENT FOR TENNIS
FACILITY MANAGEMENT SERVICES BETWEEN THE TOWN
AND PLAYER CAPITAL TENNIS
RECOMMENDATION
It is recommended that the Council approve the fourth amendment to the Tennis Facility Management Services Agreement with Player Capital Tennis clarifying court reservations and cancellation policies related to Tennis and Pickleball use at Holbrook-Palmer Park, and approving their initial one-year Extension Term.
BACKGROUND
The City Council awarded Player Capital Tennis (PCT) as the contractor to manage the tennis facilities in Holbrook Palmer Park starting September 25, 2014. The original contract provided for an initial term of one (1) year from the date of execution, with two (2) additional three (3) year term extensions for a total of seven (7) years, upon mutual agreement.
The first amendment, executed on January 3, 2018, formally extended the agreement through the approved seven (7) year term, ending September 26, 2021. The second amendment, executed on October 8, 2021, extended the contract term through September 26, 2023, with an allowance for two (2) additional one (1) year terms upon mutual agreement. The third amendment, effective September 27, 2023, adjusted Town Compensation and extended the contract through September 26, 2026, with an allowance to extend the agreement for up to two additional one (1) year terms upon mutual agreement.
PCT has been actively managing the tennis courts and reservation system for the tennis courts at Holbrook-Palmer Park. Pursuant to the terms of the original Tennis Facility Management Agreement, Player Capital Tennis currently pays the Town a flat rate of $50,000 per year ($4,167 per month) for the opportunity to manage the tennis facility and have exclusive rights to provide tennis instruction at the tennis facility. This fee helps in providing funds to maintain the tennis facility.
Player Capital Tennis Amendment to
Tennis Facility Management Agreement
SEPTEMBER 16, 2026
With the addition of pickleball use at the Holbrook-Palmer Park tennis courts, there has been an increased demand in court use and reservations.
ANALYSIS
The City Council, at its July 15, 2026, meeting directed staff to work with Player Capital to develop parameters to increase availability of the pickleball courts including opening availability of the joint use tennis/pickleball court (Court 1) to additional pickleball hours, when not reserved for tennis, development and implementation of a cancellation/no-show policy, and to begin discussions regarding overall use.
There was an expressed desire by community members and members of the P&R Committee to better define and potentially limit court usage by Player Capital Tennis. Such an adjustment would require a renegotiation with Player Capital Tennis and would be influenced by the potential conversion of the clay court to a hard court and associated conversion of the joint use court to permanent pickleball, which would impact overall availability of tennis courts. The P&R Committee has been discussing guidance and what limitations may be best regarding the blocking out of courts for instructional use. Staff will continue to listen to needs and perspectives as outlined by the P&R Committee as it initiates conversations towards a more formal contractual amendment outlining limitations on court usage associated with tennis lessons.
This fourth (4th) amendment to the Agreement for Tennis Facility Management Services would, concurrent with the first 1-year Extension Term, clarify reservation priority, open pickleball reservations on Court 1 when the court is not reserved for tennis use, and require the development of a no-shows and cancellation policy. This amendment would also limit instructional use to three courts on weekend/holiday mornings.
Future negotiations regarding court availability and potential limits on instructional use would follow feedback from the Park and Recreation Committee regarding needs and final determination and timing of the conversion of the clay tennis court to a hard court and implementation of fulltime pickleball use on Court 1.
FISCAL IMPACT
No fiscal impact anticipated at this time.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Goal A - Preserve Small Town Character & Quality of Life • Goal F - Build Community & Promote Civic Engagement
POLICY FOCUS
Player Capital Tennis Amendment to
Tennis Facility Management Agreement
SEPTEMBER 16, 2026
The policy focus should center on the desire to retain professional tennis facility management services at the Holbrook-Palmer Park tennis courts, while managing use and court availability.
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission.
ATTACHMENTS
1. Fourth Amendment to the Agreement for Tennis Facility Management between the Town and Player Capital Tennis