REQUEST FOR QUALIFICATIONS RFQ # 10586

Transcription

1 COUNTY OF MONTEREY CONTRACTS/PURCHASING DIVISION 1488 SCHILLING PLACE SALINAS, CA (831) REQUEST FOR QUALIFICATIONS RFQ # Concession Management and Operations Services Laguna Seca Recreation Area (LSRA) (Mazda Raceway) Monterey County Parks Department RESPONSES are due by 3:00 pm (PST) on Friday, July 1, 2016

2 CONTENTS SOLICITATION DETAILS SECTION INTENT BACKGROUND CALENDAR OF EVENTS PRE-PROPOSAL CONFERENCE/SITE VISIT COUNTY POINTS OF CONTACT PROGRAM SUMMARY AND FINANCIAL INFORMATION CONCESSION AGREEMENT QUALIFICATION PACKAGE REQUIREMENTS SUBMITTAL INSTRUCTIONS & CONDITIONS RFP QUALIFICATION PACKAGE REVIEW PROCESS CONCESSION AGREEMENT AWARD GENERAL CONDITIONS SEQUENTIAL CONCESSION AGREEMENT NEGOTIATIONS AGREEMENT TO TERMS AND CONDITIONS COLLUSION RIGHTS TO PERTINENT MATERIALS ATTACHMENTS/EXHIBITS AND RFQ SIGNATURE PAGE APPENDIX A: LSRA MAPS APPENDIX B: ADDITIONAL LSRA INFORMATION SIGNATURE PAGE Page

3 SOLICITATION DETAILS SECTION 1.0 INTENT 1.1 It is the intent of this Request for Qualifications (hereinafter referred to as RFQ ) to solicit responses from Entity or Entities, singly or jointly (hereinafter referred to as Respondent ), qualified to enter into a Concession Agreement to provide Management and Operations Services (hereinafter referred to as Services ) for Laguna Seca Recreational Area (hereinafter referred to as LSRA ) facility owned by County of Monterey (hereinafter referred to as County when referring to the County Government). LSRA is one of several public recreational facilities under the jurisdiction of County Parks Department. LSRA has 542 acres of available space for recreational uses as defined by the facility use permit. The premier facility associated with LSRA is a facility currently known as Mazda Raceway Laguna Seca (hereinafter referred to as Raceway ). Located in a spectacular setting, Raceway is an internationally recognized, highly-regarded racetrack that supports unique motorsports events. Raceway also hosts a large number of other outdoor activities and events not specifically associated with motorsports industry events. 1.2 The information obtained through this RFQ process shall include an expression of Respondent s interest in providing the specified Services and evidence of the requisite experience, technical, managerial, and financial qualifications to manage and operate LSRA under a long term Concession Agreement. Respondent-submitted RFQ Qualification Packages will be the primary basis for determining which Respondents are best qualified to provide Services to manage and operate the facilities, activities and events as generally identified in this RFQ document. The RFQ process is intended to allow for formal exchange of information between County and Respondents regarding their qualifications including management expertise and financial capability to provide Services. County reserves the right to negotiate a long-term concession agreement with any qualified Respondent to this RFQ. 1.3 The facilities, programs and activities that are the subject of this RFQ include the management, promotion, maintenance, operation, and capital improvement of the following: Raceway and its major and minor events Track Rental Program Campgrounds and site rentals Lakebed Event Area rentals and special events Hospitality Pavilion rentals and special events Pistol and Rifle Range (optional) All race track, water, sewer, road, bridge, facility, and other infrastructure facilities within LSRA and supporting LSRA 3 Page

4 1.3.8 Processing the application for facility use permits, including approvals and oversight of the conduct of special events conducted by other entities except County-sponsored activities Provision of, either directly or through contract, security, transportation, police, emergency response, ambulance, and other services supporting a one-stop service to users and activities conducted within LSRA. 1.4 County seeks a long term Concession Agreement with a highly qualified Concessionaire to operate, maintain, and make capital improvements at LSRA such that it would be operated as a self-sustaining enterprise of County. The LSRA enterprise is intended to operate under a separate accounting and financial reporting framework for the public services provided at LSRA that is fully supported by user fees and charges and other sources of derived revenue. The Concession Agreement would include regular periodic payments to County to be negotiated. 1.5 Over-arching County objectives include transforming, over time, Raceway into a state-ofthe-art venue for motorsports and ancillary activities; develop the other LSRA facilities to optimize their suitability to provide satisfying recreational experiences to the public; improve coordination, management and maintenance of LSRA facilities and activities; produce revenues to recover capital and overhead/operations costs associated with LSRA; ensure that Concessionaire is stable and profitable; and provide the public with quality recreational facilities and experiences. 1.6 Respondents and/or their proposed management teams should have at a minimum at least 5 years of experience in the motorsports industry involving comparable (to Raceway) operations and promoting and managing large scale events. 1.7 The successful Respondent will demonstrate: 1) it has the requisite operating experience and dedicated technical, managerial, and financial resources to manage, maintain, develop and invest in the LSRA enterprise to ensure that Raceway and other LSRA facilities remain competitive over time; 2) it will offer programs, activities and events that raise sufficient revenue to maintain and improve LSRA facilities; 3) it can provide unique and satisfying recreational experiences for County residents and the general public; and 4) it can plan, manage and execute a capital improvement masterplan for LSRA; 5) it can work successfully with motorsports sanctioning bodies, promoters and media; and 6) it can generate and sustain positive economic impacts for the region and County. 1.8 County will review responses to this RFQ and at its sole discretion choose a course of action determined to be in County s best interest. Section 10 of this document provides more information about the review process that will enable County to select one or more Finalists eligible for award of the Concession Agreement. 4 Page

5 2.0 BACKGROUND 2.1 Background Information: Raceway is currently managed by Sports Car Racing Association of the Monterey Peninsula (SCRAMP). SCRAMP has managed Raceway pursuant to a Concession Agreement that is currently extended on a month-to-month basis. The current Raceway Concession Agreement can be accessed on the web at: With the imminent expiration of the month-to-month Concession Agreement with the current Concessionaire, County has elected to undertake this RFQ process to identify the best qualified Respondents interested in serving as its Concessionaire for LSRA beginning in calendar year RFQ Qualification Packages submitted in accordance with the instructions herein will be evaluated and ranked. It is anticipated that one or more Finalists will be selected to move forward in the final phase of the selection process, which could include requesting Service proposals and/or direct negotiations for the new Concession Agreement. The goal is to have the Concession Agreement awarded in October 2016 such that Concessionaire can prepare for and provide Services for the 2017 Racing Event Season. County reserves the right to determine any other course of action that is in its best interest Monterey County has 434,000 residents, with most living in cities, several of which are located on California s beautiful Pacific Coast. The region has a world-wide reputation for its scenic beauty, mild Mediterranean climate, varied recreational opportunities, agricultural production, unique historical importance, and hospitality. The agriculture industry accounts for $4.5 billion in annual farm-gate income to the region and is a major producer of wine grapes; dozens of local wineries have tasting rooms in the County and its cities. Tourism accounts for more than $2 billion of economic activity annually LSRA is one of Monterey County s most outstanding recreational venues. It is situated midway between the Monterey Peninsula and the Salinas Valley Area, along the State Highway 68 corridor and is accessible from both State Highway 101 and State Highway 1. Monterey County is served by Monterey Peninsula Regional Airport located just five miles from LSRA. LSRA is within 1.5 hours driving distance from Silicon Valley and 2 hours driving distance from San Francisco; there is a strong population draw within easy driving distance. There are numerous attractions in the region that draw large throngs of people from the region and beyond, particularly on weekends and holidays The Concessionaire will be required to manage all Services currently undertaken at LSRA by County except the Rifle and Pistol Range (which is optional). County believes that LSRA facilities are under-utilized and therefore additional revenue 5 Page

6 opportunities are available. Furthermore, the fees associated with facilities and programs operated by County are regulated by the Government Code and therefore its fees are restricted to cost-recovery. As a Concession operation, more fee options are available, such as market-based pricing. It is evident that there is unrealized revenue available due to a combination of underutilized potential and fee restrictions and limited capital investment in LSRA facilities over the years. Additional background information regarding LSRA is provided in this RFQ document. Appendix A provides a map of LSRA site. Appendix B addresses questions and provides more details about LSRA. A photo gallery of Raceway is also available at the following web link: Required Scope of Operational and Management Responsibility: Daily Maintenance and Management of Raceway Facilities Management of Raceway Track Rental Operations Management of up to 5 Major Racing Events Management of LSRA Facility Use Permits Daily Management and Maintenance of Campground Facilities Management of the following Additional Rental Areas Lakebed Event Area Hospitality Pavilion (Formerly Red Bull Energy Center) Management and Maintenance of the Pistol & Rifle Range (optional) Management, Maintenance and Capital Improvement of all race track, water, sewer, road, bridge, buildings, structures and supporting facilities, and other infrastructure supporting the race track and greater LSRA. 3.0 CALENDAR OF EVENTS 3.1 Issue RFQ Monday, May 31, Pre-Proposal Meeting/Site Visit Friday, June 10, :00AM to 3:00PM, PST 3.3 Deadline for Written Questions Friday, June 17, RFQ Response Submittal Deadline (to submit Qualifications Package) Estimated Dates for On-Site Finalists Presentations/Interviews Friday, July 1, :00PM, PST Monday, July 25 th & Tuesday, July 26 th, Estimated Determination of Finalist(s) August Page

7 3.7 Estimated Determination by Board of Supervisors of Next Step of the Selection Process Late August 2016 This schedule is subject to change as necessary, however, the RFQ Qualification Package response deadline date will not be moved to an earlier date though it is conceivable it could be extended to a later date. 3.8 FUTURE ADDENDA: Potential Respondents that received notification of this solicitation by means other than through mail from County shall contact the designated point of contact designated within Section 5.0 County Points of Contact. Inclusion on the mailing list is the only way to ensure timely notification of any addenda and/or information that may be issued prior to the solicitation submittal date. It is anticipated that County will issue several Addenda to provide additional information and address questions that may arise. It is Respondent s sole responsibility to ensure and confirm it is on the list to receive all addenda associated with this RFQ process by either informing County Point of Contact of its mailing and information or regularly checking County s Solicitation Center web page at: Addenda will be posted on the website the day they are released. 3.9 County will issue an addendum to the RFQ after the pre-bidders conference/site visit if County considers that additional clarifications are needed All questions must be directed to the individual listed in Section 5.0 County Points of Contact. Written responses to submitted questions will be provided to all known parties in an addendum. It is Respondent s responsibility to inform County in writing of its interest in the RFQ. 4.0 PRE-PROPOSAL CONFERENCE/SITE VISIT A Pre-Proposal Conference/Site Meeting will be conducted on one day only; Friday, June 10, 2016, from 10:00am to 3:00pm at the Hospitality Pavilion located within LSRA located at 1025 Monterey-Salinas Highway 68, Salinas CA LSRA may only be toured during the Pre-Proposal Conference/Site Meeting as there will not be any individual tours given or arranged other than the one identified above. Nothing in this section, however, should be interpreted as prohibiting an independent non-hosted site visit during the normal course of business of the Raceway and other LSRA facilities. Attendance is strongly encouraged for potential Respondents that did not previously attend a Site Visit for the RFEI process. 7 Page

8 5.0 COUNTY POINTS OF CONTACT 5.1 Questions and correspondence regarding this solicitation shall be directed to: Primary Contact for County: Michael R. Derr Contracts/Purchasing Officer 1488 Schilling Place Salinas, CA PHONE: (831) FAX: (831) All questions regarding this RFQ solicitation shall be submitted in writing ( or FAX is acceptable). The questions will be researched and responses will be communicated to all known potential Respondents sometime after the deadline for receipt of questions. There is no obligation for County to address all questions. Responses may be released in serial addenda insofar as the questions may require significant research or decision-making. 5.3 The deadline for submitting written questions regarding this solicitation is indicated in the Calendar of Events herein. Questions submitted after the deadline will not be addressed unless they are deemed to be critical by County. 5.4 Only answers to questions communicated by formal written addenda will be binding. 5.5 Prospective Respondents shall not contact County officers or employees with questions or suggestions regarding this solicitation except through the primary contact person listed above. Any unauthorized contact may be considered undue pressure and cause for disqualification from the RFQ process. 6.0 PROGRAM SUMMARY AND FINANCIAL INFORMATION 6.1 Laguna Seca Recreation Area (LSRA): Raceway LSRA is a 542 acre recreation area that is owned by County. Among other things it is home to Laguna Seca Raceway, also known as Mazda Raceway Laguna Seca. (Mazda currently has naming rights to Raceway.) Raceway is the pre-eminent facility located within the LSRA as it has world-wide recognition for its unique 11-turn, 2.24 mile racetrack and the major racing events that have been conducted there for more than 50 years. The operation of Raceway involves the following responsibilities: management of the racetrack and the conduct of special motorsports 8 Page

9 events; the on-going maintenance of Raceway facilities including the racetrack and ancillary facilities and structures located within Raceway boundaries (County also currently shares in some of this responsibility); managing the Track Rental Program; promoting the activities and events associated with racing; promoting and overseeing a robust volunteer program to support special racing events; recommending and executing capital repairs and improvements to the facilities; and serving as the fiscal agent for the collection of Raceway associated revenues and their dispensation in accordance with the Concession Agreement. There are many circumstances where current County-operated LSRA facilities, such as Hospitality Pavilion, Campgrounds and Lakebed, support Raceway activities and events Raceway currently hosts 5 major races and up to 6 minor events such as SCCA races. The major events scheduled for 2016 are IMSA WeatherTech Sports Car Championship/Continental Tire Monterey Grand Prix, Motul FIM Superbike World Championship/GEICO Motorcycle U.S. Round, Rolex Monterey Motorsports Reunion, Mazda Road to Indy and the Pirelli World Challenge. County currently issues a permit for one significant event, the Sea Otter Classic, but under the terms of the current Concession Agreement County may schedule up to 35 event days per year, within certain restrictions on their attendance. During non-event days, the track is scheduled for maintenance, film/photo shoots, press days, testing, driving schools, motorcycle schools and car clubs, among others. In 2016, the track rentals included hosting the Stage 4 finish of the AMGEN Tour of California. The scheduling of all of the above is a function of the Track Rental Program Campgrounds There are 3 designated campgrounds that include in total 99 improved RV sites with electrical and water service, 4 restroom buildings (2 showers), community water points, and 71 improved tent sites. In addition there are several hundred unimproved camping sites that do not have any amenities. These facilities are available on a rental basis for the general public and special events. The Campgrounds are integral to some of the events conducted at the racetrack Raceway as well as other events conducted by third parties. County currently maintains and operates the campgrounds. It is intended that the new Concessionaire will manage and maintain the Campgrounds Hospitality Pavilion LSRA features a 5,200 square foot multi-purpose facility called Hospitality Pavilion (formally Red Bull Energy Center when it was sponsored) that was constructed 10 years ago. Maximum capacity is Page

10 6.1.4 Lakebed Event Area seated, 850 standing. It has a 20 foot deck overlooking the racetrack, controlled access, a serving area with a refrigerator and barbecue pits for caterers, a rooftop deck used for major events, level gravel areas adjacent suitable for tents, and ample storage facilities. Pavilion is rented by the public for business meetings, special events and weddings. It is a popular facility during race events. County currently maintains and operates Pavilion and intends that this responsibility will be undertaken by the new Concessionaire Surrounded on three sides by the race track, Lakebed is used for small and mid-sized events when the track is rented and it serves as the main festival/expo area for major events when the track is not in use. Large events have used Lakebed as the main festival space. These events include music festivals, recreational and charitable running and biking events, and others. Examples of such events include Spirit West Coast, Laguna Seca Days and the Sea Otter Classic. Lakebed can accommodate up to 20,000 people, depending upon how the space is used. There are two small lakes adjacent to Lakebed, three 165 x120 grass areas surrounded by decomposed granite; a paved pathway with electrical pedestals for vendors; a restroom building, a small Range Rover driving course and a small building that has been used as a first aid station or office. County currently maintains and operates Lakebed and it is intended that this responsibility will be undertaken by the new Concessionaire Rifle and Pistol Range Range includes 15 rifle and 10 pistol shooting stalls with several different yardages available at each station. Ammunition can be purchased onsite and there are reactive steel and paper targets available for purchase as well. The facility is available for rental to the general public and gun clubs. The property includes a Peace Officer Range that is operated by the County s Peace Officers Association. The public Range is open Friday through Monday year round, though it is closed during large special events and 2 annual holidays. Over the last year the range was open 195 days. County currently operates the public Range and it is optional for this responsibility to be undertaken by the new Concessionaire Facility Use Permits Permits are required for special activities and events conducted within the LSRA. Except for Raceway, LSRA Facility Use Permits are currently administered by County Parks Department staff subject to policies and regulations in effect for the particular use requested. The responsibility for 10 Page

11 administering such permits will be the new Concessionaire, subject to guidelines provided by County through the Concession Agreement. 6.2 Revenue Generated from LSRA Programs and Activities: Raceway This financial information applies to all of the program operations undertaken by SCRAMP, the current Concessionaire. SCRAMP is a nonprofit corporation that is required to file Tax Form 990, a public document, each calendar year The most recent available Form 990 filed by SCRAMP is for Tax Year SCRAMP reported gross revenue of $10,914,078. The 2014 revenues are characterized as: $2,726,361 from Gate Admissions; $4,973,396 from Other Support and Revenue; $3,090,728 from Sponsorships; and $123,953 from Net Income from Sales SCRAMP s 2013 Form 990 reported gross revenue of $15,233,895. The revenues are characterized as: $4,787,795 from Gate Admissions; $3,656,147 from Sponsorships; $6,431,798 from Other Support and Revenue; $218,000 from Contributions, Gifts and Grants; and $140,155 from Net Income from Sales SCRAMP s (most recent financials) Tax Year 2014 financial statements can be accessed at: Campgrounds, Hospitality Pavilion and Lakebed Area This financial information applies to the program operations of the facilities and activities currently managed by County in LSRA. (It does not include Raceway activities currently managed by Concessionaire and Rifle and Pistol Range currently managed by County). The revenue is derived primarily from rental and use fees. For County fiscal year 15/16 (July-June), the projected revenue is $525,000. It should be noted that the County has not widely promoted the availability of these facilities and it is believed that active promotion of their availability could lead to a significant increase in their public use and thus increased revenue. 11 Page

12 6.2.3 Rifle and Pistol Range This financial information applies to the Range as a stand-alone facility currently operated by County and does not include the Peace Officer Range. For FY 15/16, the revenue derived from range rentals is projected to be $ Like the other LSRA facilities operated by County, it is likely that active promotion could potentially result in significant increase in public use leading to more revenue Revenue from Track Rental Receipts and Concession Agreement Payments County currently receives 80% of the revenue from the Track Rental program. County also receives revenue from periodic fixed payments and 5% gross receipts payments required of Concessionaire. The projected FY 16/17 revenue from the Track Rental program is $1,800,000 and $490,000 is projected from the Concessionaire s obligations. 7.0 CONCESSION AGREEMENT 7. 1 Its intended that the Concession Agreement will ultimately be a long-term, multi-year agreement in order to provide the Concessionaire the ability to recover start-up costs, finance capital expenses and other investments in LSRA, provide regular periodic payments and ensure continuity of programming. County will negotiate with Finalist(s) to establish the terms of the Concession Agreement. While the current Concession Agreement with SCRAMP will provide important information about the Concessionaire- County relationship and some of the significant issues that will be addressed, it should not be assumed it will be a model for the new Concession Agreement, especially since it is anticipated that the scope of Services will be substantially expanded by shifting operating and maintenance responsibility for LSRA as generally described herein and the degree of County oversight will be substantially diminished. County is interested in considering other forms and terms of Concession Agreement that will provide appropriate authority for the Concessionaire to manage Services and maximize the benefits to both parties. 8.0 QUALIFICATION PACKAGE REQUIREMENTS 8.1 CONTENT AND LAYOUT: Respondent shall provide the information as requested and as applicable to the Services proposed to be undertaken by Respondent. The Qualifications Package shall be organized as directed in the instructions included within this section. Headings and section numbering utilized in the Qualification Package shall be the same as those identified in the table. Qualification Packages shall include at a minimum, but not limited to, the following information in the format indicated: 12 Page

13 Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Qualification Package Layout; Organize and Number Sections as Follows: COVER LETTER (INCLUDING CONTACT INFO) RECEIPT OF SIGNED ADDENDA (IF ANY) SIGNATURE PAGE TABLE OF CONTENTS SCOPE OF SERVICE OPERATIONS BUSINESS MANGEMENT/NARRATIVE FINANCIAL MANAGEMENT NARRATIVE OPERATION ISSUES NARRATIVE EXCEPTIONS ADDITIONAL REQUIREMENTS Section 1 Requirements: Cover Letter and Contact Information: All proposals must be accompanied by a cover letter not exceeding the equivalent of 2 single-sided pages (minimum 12 point) and provide the name, address, telephone number, address and fax number of Respondent s primary contact person during the RFQ solicitation process through to potential Concession Agreement award. Signed Signature Page and Signed Addenda: If any addenda(s) were released for this solicitation, Qualification Packages submitted without this page will be deemed nonresponsive. All signatures must be manual and in BLUE ink. All prices and notations must be typed or written in BLUE ink. Errors may be crossed out and corrections printed in ink or typed adjacent, and must be initialed in BLUE ink by the person signing the proposal. Table of Contents Respondents are instructed to provide County with detailed information in narrative form and with supplemental visual aids, as deemed appropriate by the applicant. Section 2, Scope of Service Operations: Confirm in a narrative response that Respondent will undertake the following operations if selected in serving as Concessionaire for LSRA. Raceway Campgrounds Hospitality Pavilion Lakebed Event Area Rifle and Pistol Range (Optional) 13 Page

14 All race track, water, sewer, road, bridge, facility and capital improvements at LSRA Section 3, Business/Management Narrative: Provide a detailed description of the organization of the business Organization/Entity that is proposed to serve as Concessionaire for LSRA and the scope of Services contemplated to be undertaken. Include a description of the role and relationship of any parent companies or partnerships involved. Provide an organizational chart for the Concession Agreement management structure and also an organizational chart that depicts the reporting/business relationships with other Entities. Provide an Executive Summary of the qualifications and experience of the proposed Organization/Entity and management team that would operate the Concession Agreement with the scope of operations identified by Respondent within Section 2 above. Identify the key personnel who will be assigned to serve in a significant management capacity for the Concession Agreement and the role/position that each will undertake. Provide a one page profile/resume for each identified individual, except that the qualifications of the individual that will serve as the Chief Operating Officer/Executive and the individual that will serve as the Chief Financial Officer should be detailed. If individuals for significant management positions are not yet identified, describe the qualifications that will be sought and the timeframe for hiring. Provide a Vision Statement for Raceway and the other required LSRA facilities over a time span of 20 to 30 years. This Vision Statement should be constrained by known use and other restrictions noted within this document, however, other programmatic elements may be identified if it is noted that they may never be feasible unless known restrictions are modified. Provide a list and one page profile of each member of any Board that will be responsible for oversight of Concession Agreement performance. Provide a list with contact information of six business references for the responsible Entity(s). Provide, for the Entity(s) responsible for the Concession Agreement performance, its management and/or its affiliations, detailed information about years of experience in the motorsports industry, managing large venues and the overall financial magnitude of comparable operations such as annual gross revenue (may be approximated or in a range). Describe Entity(s) relationship and experience with sanctioning bodies, promoters and media. Provide examples. If Entity is a partnership, provide the names of the partners and a brief profile of each of them if not provided pursuant to the above. Respond to the following question. Why should Respondent be selected as County s Concessionaire for this important venture? Section 4, Financial Management Narrative: The following financial information of the Respondent* must be submitted: 14 Page

15 Audited Financial Statements for the past four fiscal years including all schedules and attachments. Submit the most current Monthly and Year-to-Date Income and Expense Statements, including Balance Sheet, Income Statement and Change in Financial Position Statement. Also submit a recent credit report for the Entity(s) involved with this RFQ. Provide a description of the financial management system and organizational relationships that will be in place to support the operation of the Concession Agreement. Describe the capacity of Respondent to finance startup costs associated with the Concession Agreement and finance capital expenses associated with LSRA to be recovered by future income available from a multi-year agreement. Provide assurances that demonstrate Respondent s likelihood of maintaining fiscal stability for the duration of a multi-year Concession Agreement. Address any negative public information that may be associated with any aspect of the finances of Respondent. Provide a certification by Respondent s chief representative that the information provided in this Section is reliable and ensure that all statements submitted are signed by a certified CPA. *In the event that the Entity that will operate the Concession Agreement is a LLC or some form of partnership, address the requested information by providing the information of the principal parent Entity that is responsible for the Concession Agreement. If there are other arrangements in place and there are questions about how to respond, please contact County Point of Contact for guidance. Section 5, Operation Issues Narrative: There are a number of issues that County and Concessionaire will encounter with the implementation of a new Concession Agreement. Several of these issues are identified below. Please address the following questions: It is County s intent to negotiate a new multi-year Concession Agreement to span a significant period of time, projected as years. If there is a minimum time span that would be desired or required by the Respondent, identify the required period of time within the response. County anticipates that there would be a renewal provision in the Agreement. How would Respondent deal with a transition from the current Concession Agreement in terms of potentially hiring experienced staff from the current Concessionaire, should that transition occur? County policies emphasize a preference, but not an absolute requirement, for hiring local contractors and vendors. To what extent will Respondent be willing and able to do this? The current Concessionaire augments its workforce by recruiting many volunteers for special events and some on-going part-time assignments. What is the experience and intent of Respondent in engaging volunteers? The current Concessionaire supports several local non-profit agencies, largely by providing financial support for agencies that provide volunteers from their memberships. Is this a practice that Respondent would emulate and/or is there an alternative way that Respondent would support local non-profit agencies? 15 Page

16 LSRA is located in the scenic hills of the primary highway corridor that connects Monterey Peninsula with Salinas. Local residents in particular have understandable sensitivities to traffic and noise, though as a group they are reasonably tolerant with the activity currently conducted at LSRA. In addition the LSRA has environmental sensitivities within its boundaries. What is the experience and approach that Respondent would pursue in addressing these and other environmental matters? Please provide examples to illustrate this. While County is interested in the deal points of a Concession Agreement that may be proposed by a Respondent selected as a Finalist, County does not have the financial resources to invest its General Fund resources to subsidize operational/overhead or capital expenses associated with LSRA facilities and activities managed by Concessionaire. The Concession will be structured as a self-sustaining enterprise. It is envisioned that Concessionaire s payments to County will be comprised of a combination of base regular periodic payments and sharing a percentage of annual revenue derived from the Concession. Once the Finalist(s) is selected, County will be requesting a detailed Services proposal and multi-year pro-forma for the Concession operations and capital investments. These materials should not be provided at this time. Section 6, Exceptions: Submit any and all exceptions to this solicitation on separate pages, and clearly identify the top of each page with EXCEPTION TO MONTEREY COUNTY RFQ SOLICITATION RFQ #10586 Each Exception shall reference the page number and section number, as appropriate. Respondent should note that the submittal of an Exception does not obligate County to revise the terms of the RFQ. 8.2 ADDITIONAL REQUIREMENTS: To be considered responsive, submitted RFQ Qualification Packages shall adhere to the following: Eight (8) sets of the Qualification Packages (one original proposal marked Original plus seven copies) shall be submitted in response to this solicitation. Each copy shall include a cover indicating the company name submitting, and reference the RFQ # In addition, submit one (1) electronic version of the entire proposal or Qualifications Package on a CD, DVD, or USB memory stick. Additional copies may be requested by the County at its discretion Qualification Packages shall be prepared on 8-1/2 x 11 paper, preferably bound with front and back covers. Fold out charts, tables, spreadsheets, brochures, pamphlets, and other pertinent information or work product examples may be included as Appendices Reproductions of the Monterey County Seal shall not be used in any documents submitted in response to this solicitation Respondent shall not use white-out or a similar correction product to make late changes to any hard copy versions of their qualifications package but may instead line out and initial in BLUE ink any item which no longer is applicable or accurate. 16 Page

17 8.2.5 To validate the Qualification Package, Respondent shall submit the SIGNATURE PAGE (contained herein) with the Qualification Package. Qualification Packages submitted without the appropriately executed SIGNATURE PAGE shall be deemed non-responsive. The signature must be manual, in BLUE ink, and included with the original copy of the Qualification Package. Photocopies of the Signature Page may be inserted into the remaining 5 copies. All notations must be typed or written in BLUE ink in the original RFQ response copy as well. Errors may be crossed out and corrections printed in BLUE ink or typed adjacent, and must be initialed in BLUE ink by the person signing the SIGNATURE PAGE. * In the event Respondent is a form of partnership of two or more parent Entities, the SIGNATURE PAGE should be duplicated and signed by a principal of each participating entity CONFIDENTIAL OR PROPRIETARY CONTENT: Any page of the RFQ Package that is deemed by Respondent to be a trade secret by the Respondent shall be clearly marked CONFIDENTIAL INFORMATION or PROPRIETARY INFORMATION at the top of the page. County will not disclose proprietary information to the public unless required by law, however County cannot guarantee that such information will be held confidential. 9.0 SUBMITTAL INSTRUCTIONS & CONDITIONS 9.1 Submission Identification Requirements: ALL SUBMISSIONS MAILED OR DELIVERED CONTAINING RFQ QUALIFICATION PACKAGES MUST BE SEALED AND BEAR ON THE OUTSIDE, PROMINENTLY DISPLAYED IN THE LOWER LEFT CORNER OF THE FACE OF THE SUBMISSION: THE SOLICITATION NUMBER RFQ #10586 and the RESPONDENT ENTITY S NAME. 9.2 Mailing Address: Qualification Packages shall be mailed to County at the mailing address indicated on the Signature Page of this solicitation. 9.3 Due Date: Qualification Packages must be received by County ON OR BEFORE the time and date specified, at the location and to the person specified on the Signature Page of this solicitation. It is the sole responsibility of the Respondent to ensure that the Qualifications Package is received at or before the specified time. Postmarks, electronic transmissions, and facsimiles are not acceptable. Qualification Packages received after the deadline shall be rejected and returned unopened. 9.4 Shipping Costs: Unless stated otherwise, the F.O.B. for receivables shall be destination. Charges for transportation, containers, packaging and other related shipping costs shall be borne by the shipper. 17 Page

18 9.5 Acceptance: Qualification Packages are subject to acceptance at any time within 120 days after opening. County reserves the right to reject any and all Qualification Packages, or part of any Qualification Package, to postpone the scheduled deadline date(s), to make an award in its own best interest, and to waive any informalities or technicalities that do not significantly affect or alter the substance of an otherwise responsible qualification package and that would not affect a Respondent s ability to perform the work adequately as specified. 9.6 Ownership: All submittals in response to this solicitation become the property of County. If a Respondent does not wish to submit a Qualification Package but wishes to acknowledge the receipt of the request, the reply envelope shall be marked NO BID. 9.7 Compliance: Qualification Packages that do not follow the format, content and submittal requirements as described herein, or fail to provide the required documentation, may receive lower evaluation scores or be deemed non-responsive RFP QUALIFICATION PACKAGE REVIEW PROCESS 10.1 Submitted Qualification Packages will be reviewed for completeness by County Purchasing Department staff. Those deemed compliant will be subject to the Qualification Package review process. The review process will be conducted by a team of individuals called the Independent Review Panel (hereinafter referred as IRP ). The IRP as a group will have individuals experienced in a variety of relevant business management skills including: motorsports industry; leadership and management: finance; recreation programming and special events; and promotions and public/media relations. Members of the IRP shall not have legally recognizable conflicts of interest, allegiance or affiliation to any individual Respondent The IRP will evaluate and rate each Qualification Package using standard criteria provided by County. The elements to be considered include but are not limited to the following general categories: Experience and Proven Performance. The relevant experience and performance of Respondent, its principals and key staff in motorsports, special events, promotions, concession agreements, management, capital projects execution and public/media relations Management and Organization. The qualifications of the management team and key personnel proposed and the suitability of the organizational structure, including Boards, proposed to oversee and operate the Concession Financial Stability, Accountability and Capability. The track record of Respondent in achieving industry standards in financial reporting and accountability, the stability of Respondent s financial performance over several years, the wherewithal to finance Concession startup costs and potentially capital expenses in the early years of a long term Agreement projecting future revenues 18 Page

19 will recover the expenses (which is subject to Concession Agreement negotiations) Scope of Services. It is required that Respondent agrees to manage and operate all LSRA facilities and activities with the exception of the Rifle and Pistol Range. The priority, however, is to operate Raceway. The ability of Respondent to successfully operate Raceway is paramount in the decision of which Respondent will be selected as Finalist for the Concession Agreement Ability to Address County Objectives. County objectives are expressed in various sections of this RFQ document Qualification Package Evaluation and Site Visit Each compliant Qualification Package will be evaluated by the IRP. If during the evaluation process, the IRP is unable to determine a Respondent s ability to perform, the IRP has the option of requesting additional information the IRP deems necessary to make this determination. Respondent will be notified by the County Point of Contact and will be permitted 3 working days to comply with any such request(s) Once the IRP concludes its initial evaluation and ranking, it is anticipated (though not necessarily certain) that the Respondents submitting the highest-ranked Qualification Packages will be requested to appear before the IRP to provide a formal presentation and respond to questions. July 25 and 26 are held open for that purpose and Respondents must be prepared to have representatives available to attend on either day. Once the presentations are completed, the IRP will consider the contents of the presentations and establish its final rankings and recommendation(s) Recommendation Following the assessment of submitted proposals, the IRP will make a recommendation(s) to the Monterey County Board of Supervisors which will have the final approval authority for the selected Concessionaire Each Respondent will be notified as to the IRPs recommendation regarding the selected Finalist(s) for the Concession. All media releases pertaining to the award and or recommendation shall only be made by County Any Respondent that is not recommended to receive the Concession Agreement by the IRP may request a debriefing conference (exit interview) with County staff for the purpose of discussing only its Qualification Package. 19 Page

20 10.5 Concession Agreement Negotiations Final award of the Concession Agreement is contingent upon the successful negotiations. Negotiations shall be confidential and not subject to disclosure to competing Respondents unless an agreement is reached Concession Agreement Implementation An implementation plan and timeline will be developed with the successful Respondent upon completion of successful negotiations CONCESSION AGREEMENT AWARD GENERAL CONDITIONS 11.1 Multiple Award(s): County has the option to award a portion or portions of this contract to multiple qualified Respondents at the sole discretion of and benefit to County Board of Supervisors: The determination of whether to consider the Respondent for a Finalist may be subject to approval by the County Board of Supervisors Interview: County reserves the right to interview selected Respondent before a Concession Agreement is awarded. The costs of attending any interviews are the Respondent s responsibility Incurred Costs: County is not liable for any cost incurred by Respondent relative to any aspect of this solicitation Notification: Respondents that have submitted a Qualifications Package will be notified of the selection of Finalist(s) immediately after the decision is formally adopted In County s Best Interest: The award(s) resulting from this solicitation will be made to Respondent that submit(s) a response that, in the sole opinion of County, best serves the overall interest of County, however, County has no obligation to select a Finalist(s) or select a Concessionaire as a result of this RFQ process Guaranteed Value: County does not guarantee a minimum or maximum dollar value for any Agreement(s) resulting from this solicitation process SEQUENTIAL CONCESSION AGREEMENT NEGOTIATIONS 12.1 County intends to pursue Concession Agreement negotiations with one or more Respondents that are deemed the most qualified in the sole opinion of County, and which is in accordance with the criteria as described within this solicitation. It is anticipated, but not required, that County will require a detailed Services proposal from Finalist(s) before commencing negotiations. If the negotiations are unsuccessful, in the opinion of either 20 Page

21 County or Concessionaire, County may pursue Concession Agreement negotiations with the Respondent that submitted a RFQ Qualification Package that County deems to be the next best qualified to provide the services, or County may issue a new solicitation or take any other action which it deems to be in County s best interest AGREEMENT TO TERMS AND CONDITIONS 13.1 Concessionaire selected through this process will be expected to execute a formal Concession Agreement with County for the provision of Services which have been generally identified in this document. The Agreement shall be written by County in a standard format approved by County Counsel. Terms and Conditions for the Concession Agreement are not available at this time and will be developed in collaboration with Finalist(s) selected for negotiations COLLUSION 14.1 Respondent shall not conspire, attempt to conspire, or commit any other act of collusion with any other interested party for the purpose of secretly, or otherwise, establishing an understanding regarding rates or conditions to the solicitation that would bring about any unfair conditions RIGHTS TO PERTINENT MATERIALS 15.1 All responses, inquiries, and correspondence related to this solicitation and all reports, charts, displays, schedules, exhibits, and other documentation produced by the Respondent that are submitted as part of the submittal will become the property of the County when received by the County and may be considered public information under applicable law. Any proprietary information in the submittal must be identified as such and marked CONFIDENTIAL INFORMATION or PROPRIETARY INFORMATION. County will not disclose proprietary information to the public, unless required by law; however, County cannot guarantee that such information will be held confidential. 21 Page

22 ATTACHMENTS/EXHIBITS AND RFQ SIGNATURE PAGE Appendix A: LSRA Maps Appendix B: Additional LSRA Information (Note: This Appendix will be issued as an addendum on June 1, 2016.) Please visit http. if the addendum is not received by mail or .) Signature Page APPENDIX A: LSRA MAPS 22 Page

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26 APPENDIX B: ADDITIONAL LSRA INFORMATION Appendix- B will be forth coming at a later date to be determine and will be issued under a separate written addendum for RFQ # Page

27 SIGNATURE PAGE COUNTY OF MONTEREY RFQ #10586 CONTRACTS/PURCHASING DIVISION ISSUE DATE: Monday May 31, 2016 RFQ TITLE: Concession Management Services Laguna Seca Recreation Area (LSRA) (Mazda Raceway) Monterey County Parks Department RFQ RESPONSE PACKAGES ARE DUE IN THE OFFICE OF THE CONTRACTS/PURCHASING OFFICER BY: 3:00 P.M., LOCAL TIME, on Friday, July 1, 2016 QUESTIONS ABOUT THIS RFQ SHALL BE DIRECTED TO: Michael R. Derr Contracts/Purchasing Officer (831) MAILING ADDRESS: COUNTY OF MONTEREY CONTRACTS/PURCHASING DIVISION 1488 SCHILLING PLACE SALINAS, CA RESPONDENT MUST INCLUDE THE FOLLOWING IN EACH SUBMITTED QUALIFICATION PACKAGE (1 original plus 7 copies): ALL REQUIRED CONTENT AS DEFINED PER SECTION 8.0 HEREIN This Signature Page must be included with your submittal in order to validate your proposal. Packages submitted without this page will be deemed non-responsive. CHECK HERE IF YOU HAVE ANY EXCEPTIONS TO THIS SOLICITATION. RESPONDENTS MUST COMPLETE THE FOLLOWING TO VALIDATE I attest that to the best of my knowledge the information provided in this submittal is reliable and that I am an official officer representing my business entity and authorized with signatory authority to present this Qualifications Package. Company Name: Date: Signature: Phone: Fax: Printed Name: Title: Street Address/PO Box: City: State ZIP: License No. (if applicable): License Classification (if applicable): 27 Page