Title
a. Approve and authorize the Monterey County Laguna Seca Representative to sign a two-year nonstandard Event Agreement between Krave Group, LLC dba MotoAmerica and the County of Monterey with a term of April 1, 2022 through December 31, 2023, to sanction and produce the Geico Motorcycle MotoAmerica Superbike SpeedFest at Monterey to be held at WeatherTech® Raceway at Laguna Seca on July 8-10, 2022 for a base fee of $27,500, and on a 2023 date, to be agreed upon in writing by the parties, for a base fee of $30,000;
b. Approve nonstandard insurance provisions as recommended by the Contracts/Purchasing Officer; and
c. Approve and authorize the Monterey County Laguna Seca Representative to execute up to three (3) future amendments to this Agreement where the total amendments do not exceed 10% ($3,000) of the agreement amount and do not significantly change the scope of work, subject to County Counsel approval.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Monterey County Laguna Seca Representative to sign a two-year nonstandard Event Agreement between Krave Group, LLC dba MotoAmerica and the County of Monterey with a term of April 1, 2022 through December 31, 2023, to sanction and produce the Geico Motorcycle MotoAmerica Superbike SpeedFest at Monterey to be held at WeatherTech® Raceway at Laguna Seca on July 8-10, 2022 for a base fee of $27,500, and on a 2023 date, to be agreed upon in writing by the parties, for a base fee of $30,000;
b. Approve nonstandard insurance provisions as recommended by the Contracts/Purchasing Officer; and
c. Approve and authorize the Monterey County Laguna Seca Representative to execute up to three (3) future amendments to this Agreement where the total amendments do not exceed 10% ($3,000) of the agreement amount and do not significantly change the scope of work, subject to County Counsel approval.
SUMMARY/DISCUSSION:
Krave Group, LLC, dba MotoAmerica (Krave) is located in Costa Mesa, California, and is the commercial rights holder of the American Motorcyclist Association (AMA) Superbike Championship known as MotoAmerica. Krave wishes to enter into a two-year Event Agreement (Agreement) to sanction and produce the Geico Motorcycle MotoAmerica Superbike SpeedFest at WeatherTech® Raceway at Laguna Seca. The race is sanctioned by the AMA and Federation Internationale De Motocyclisme (FIM) North America. The MotoAmerica series crowned their first champions in 2015, and they returned to Laguna Seca in 2019 for an annual race event. The 2022 race will be held on July 8-10, 2022; the 2023 race will be held on a date to be agreed upon in writing by the parties.
This proposed nonstandard Event Agreement (Attachment A) provides for Krave to pay the County an Event Fee of $27,500 in 2022 and $30,000 in 2023. In addition to the Event Fee, the Agreement includes: (1) a 50/50 split between Krave and the County of revenue from the sale of all tickets, parking, and camping revenue; (2) the County retains one hundred percent (100%) of sales from concessions, karting, parade laps, track activities, retail store sales, and corporate hospitalities; and (3) expenses will be allocated on a shared basis between Krave and County. Sponsorships will be obtained in cooperation with Krave.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel and Auditor-Controller’s Office reviewed and approved the proposed Agreement as to form and fiscal provisions, respectively. Risk Management reviewed and approved the nonstandard insurance provisions.
FINANCING:
This Agreement is revenue generating for Fund 453 Laguna Seca Budget and a split of expenses between the County and Krave. There is sufficient funding in Laguna Seca Recreation Area Fund 453, Appropriation Unit CAO046, to cover the increased fees in this Agreement in Fiscal Year 2021-22. Future cost for services for the remainder of this Agreement will be included in Fiscal Year 2022-23 Recommended Budget in Fund 453, under its new Appropriation Unit PFP067.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The recommended action supports the Board of Supervisors Strategic Initiatives for Economic Development and Administration. Use of the services will assist in conducting quality events at Laguna Seca facilities and improve the effectiveness of County services. This, in turn, will generate revenue to sustain the park facility and promote economic development by attracting domestic and international visitor dollars that will stimulate the local economy.
X Economic Development
X Administration
Health and Human Services
Infrastructure
Public Safety
Prepared by: Dona Luna, Management Analyst II (831) 755-5455
Reviewed by: Bryan Flores, Chief of Parks
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities, & Parks
Attachment:
Attachment A-Proposed Nonstandard Krave Event Agreement
(Attachment is on file with the Clerk of the Board)