Title
a. Approve a five-year Facility Use Agreement between the Sea Otter Classic, Inc., doing business as the Sea Otter Classic, and the County of Monterey to produce the Sea Otter Classic Sports Festival at the Laguna Seca Recreation Area for the years 2013-2017, with an option for a five-year extension from 2017 to 2022 on terms and conditions to be mutually agreed to by the parties, if exercised by both parties;
b. Authorize the Chair of the Board to sign the Agreement on behalf of the County; and
c. Authorize the Parks Director to issue Standard Form Special Event Permits each year (2013-2017) for the Sea Otter Classic Sports Festival, and enter into Memoranda of Understanding with the Sea Otter Classic, Inc., as necessary, to address specific details on maintenance and operations pursuant to the terms of the Agreement.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve a five-year Facility Use Agreement between the Sea Otter Classic, Inc., doing business as the Sea Otter Classic, and the County of Monterey to produce the Sea Otter Classic Sports Festival at the Laguna Seca Recreation Area for the years 2013-2017, with an option for a five-year extension from 2017 to 2022 on terms and conditions to be mutually agreed to by the parties, if exercised by both parties;
b. Authorize the Chair of the Board to sign the Agreement on behalf of the County; and
c. Authorize the Parks Director to issue Standard Form Special Event Permits each year (2013-2017) for the Sea Otter Classic Sports Festival, and enter into Memoranda of Understanding with the Sea Otter Classic, Inc., as necessary, to address specific details on maintenance and operations pursuant to the terms of the Agreement.
SUMMARY/DISCUSSION:
The Sea Otter Classic, Inc. has requested a five-year Agreement to produce the Sea Otter Classic Sports Festival, a four-day festival, at the Laguna Seca Recreation Area in the years 2013 through 2017 as a Parks Department primary special event weekend. County staff and the promoter have been engaged in active negotiations for over a year to ensure that the proposed agreement terms have been brought up to date, are consistent with other event agreements and operations, and continues to ensure that the best interests of the County are properly protected while affording event calendaring stability and a reasonable return to the promoter. As part of that process, and in an effort to avoid some of these transitional delays, in calendar year 2016, County staff and Sea Otter Classic Inc., are recommending that the parties meet and discuss and negotiate in good faith the potential mutually agreeable extension of this Agreement for an additional five year period, 2018 through 2022. The exact provisions and conditions of that extension, including but not limited to fees, window of Sports Festival dates, insurance, and/or available infrastructure shall be subject to negotiation or renegotiation at that time.
The Sea Otter Classic Sports Festival is the premier non-motorized mountain bike and cycling event in the World, and has been held at the Laguna Seca Recreation Area since 1991. This four-day event includes race competition, exhibits, and numerous cycling related activities. In addition to providing the community with another first class attraction, it also provides several non-profit organizations the opportunity to raise funds.
This event has occurred annually since 1991 pursuant to several five year term agreements; the current agreement extension expired January 1, 2013. Since its inception, annual attendance has increased from 14,000 to over 34,000 for the four days of the event, and has spotlighted the County in a very positive light. In addition, the event has been a financial success for the County and the relationship with the vendor has been positive throughout the event history. As a result of the event's success, the Sea Otter Classic is requesting an addition five-year agreement with a potential extension, if mutually agreeable in 2016 and upon mutually agreeable terms and conditions, for an additional five years after the initial term of the current recommended Agreement, to continue to effectively schedule, promote, and produce this elite event into the future.
The Sea Otter Classic has been in compliance with their prior agreements and annual use permits for special events at Laguna Seca Recreation Area.
OTHER AGENCY INVOLVEMENT:
Risk Management and County Counsel have reviewed this Agreement and approved it as to form. As with all other events at the Laguna Seca Recreation Area, the Sheriff's Department, Emergency Services, Health Department, California Highway Patrol and Monterey County Regional Fire District will be involved with approvals of the specific permits and plans for the event.
FINANCING:
The Agreement will provide between $100,000 and $110,000 in annual special event revenue during the initial five year term of the Agreement. The Agreement includes adjustments to increase revenue over the term of the Agreement, and fees to be charged are going to be specifically the subject of adjustment in the event that the Agreement option to extend for the additional five years is exercised.
Prepared by: Lavonne Chin, Special Events Manager, 831-758-3604
Approved by: Michael C. Ferry, Director of Parks/Chief Ranger, 831-755-4895
Attachments:
Laguna Seca Recreation Area Facility Use Agreement (on file with Clerk of the Board)