A longtime tennis pro has sued the city of Coronado, alleging a contract given to a Texas company to run the community’s tennis concessions was fraudulent and in violation of city codes.
The issue stems from 2020, when the city sought bids to operate the Tennis Concession at the Coronado Tennis Center. A group from Texas, known as Impact Activities, submitted a bid to run the Tennis Center. This included running the Pro Shop and making schedules for classes.
When Impact Activities submitted its bid, the company said that everything would stay the same, according to the suit filed in May of 2021.
That meant a group of tennis professionals who taught in Coronado could operate as they always used to, according to Mario DiLonardo, a tennis pro who had been teaching tennis in Coronado for over 11 years.
Full support of tennis coaches?
Impact Activities’ bid stated that they had the full support of the tennis coaches on Coronado. However, DiLonardo disputes that claim.
The city chose the Texas firm after it obtained the most points through a bidding process implemented by Coronado, and the contract was awarded in February 2021, according to Coronado’s Communications and Engagement Officer Andrea McCullough.
Impact Activities was now responsible for operating the entire Tennis Center, working with the city for tennis events and advertising, among other duties, as stated in the proposal.
The company has denied any allegations of wrongdoing and city officials declined to comment for this story.
Points of concern
However, a few points of concern emerged when Impact Activities took over.
“During the bidding process, Joel Meyers (“Meyers”) a fellow CTC pro who was part of Impact’s team and the local managing agent for Impact, told the pros working at the CTC that if they endorsed Impact’s bid and Impact won, they would all be able to keep their jobs and make more money,” reads the first amended complaint in a lawsuit filed by DiLonardo.
Impact Activities put the support they had gained in their bid from the tennis pros, and they had also listed DiLonardo as one of the them who offered support, DiLonardo said.
However, in a series of emails given to The Coronado News, DiLonardo shows that he never offered his support.
He said in an interview that Impact Activities never put in writing what DiLonardo – and other pros – would be specifically supporting by backing the company.
“False statements”
“In their document, there are false statements…that’s a material aspect of the bid,” said Rob Wendt, a Coronado resident and another bidder for the proposal for tennis concessionaire.
According to the rules of Coronado’s proposal, Impact Activities’ bid should not have been chosen on that issue, and there was a false premise on the bid, says DiLonardo.
DiLonardo points to the city’s proposal that says each bid shall include a statement that all information included in the proposal is true and accurate as represented by the presenter.
Any proposal containing information proven false shall be considered rejected by Coronado.
Even though DiLonardo said he didn’t back Impact Activities’ bid as stated by the company, the city chose Impact Activities as the concessionaire.
DiLonardo: Contract not renewed
And following Impact Activities’ takeover as concessionaire, DiLonardo said he was told his contract would not be renewed.
That means he could no longer teach in Coronado, even though Impact Activities told the pros they would be able to keep their jobs, he said.
Some residents in Coronado such as Catherine Baker also have been dismayed by the situation.
She wrote in a Facebook group that the Texas company was “asking for upwards of 50% of the pros fees,” and set limits to where they can teach.
City’s role questioned
The city’s role also has been questioned in the suit.
At the time of the bid in 2021, there was a Coronado city employee, Samantha Nelson, who was employed by the Parks and Recreations Department.
She “managed the tennis program for the City of Coronado. She was the City’s in-house coordinator for the RFP,” as stated in the first amended complaint.
That was a conflict of interest and violated city policy, according to the lawsuit.
Nelson was a part of the bid process with the city by being its in-house coordinator for the RFP while simultaneously being offered a better salary with Impact Activities, according to the bid.
“Sam is excited about joining the Impact team as we will guarantee her more hours and therefore greater income,” stated Impact Activities’ bid.
City’s code of ethics
According to the City of Coronado Administrative Procedures Code of Ethics, “[a]ny official or employee who has a substantial or controlling financial interest in any business entity, transaction, or contract with the City…[Sh]e shall refrain from voting upon or otherwise participating in the transaction or making of such contract or sale.”
The lawsuit said Nelson’s involvement in helping pick Impact Activities was improper, because Nelson would be offered more money if Impact Activities won.
“She’s working with the people who are the ones judging the selection.”
-Brent Pettersson, a bidder commenting on the role of city employee Samantha Nelson.
“She’s working with the people who are the ones judging the selection,” says Brent Pettersson, another bidder for the Tennis Concession.
Impact Activities said “all of Mr. DiLonardo’s allegations are denied,” but the company declined further comment, citing the ongoing litigation.
Nelson and Coronado officials did not respond to questions.
