Title
Receive Financial Performance Reports and a report on a Potential Concession Agreement for the Laguna Seca Recreational Area.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors receive the following reports on Laguna Seca Recreation Area (LSRA):
a. LSRA Financial Report for Fiscal Years (FY) 2007 through 2022, and Current-Year Estimate Report for FY 2023; and
b. Potential Concession Agreement Report.
SUMMARY/DISCUSSION:
Background:
The Laguna Seca Recreational Area (LSRA) has been in existence since 1957, with the first event at Laguna Seca Raceway taking place on November 9, 1957. Owned by the County of Monterey (County) and operated under the Parks Division of the Public Works, Facilities and Parks Department (PWFP) since November 1, 2021, LSRA is open year-round and includes the WeatherTech(r) Raceway at Laguna Seca, campgrounds, hospitality venue, and a public rifle and pistol shooting range. Please refer to Attachment A for a location map.
The methods of management of LSRA have changed over time. From 1957 to 1974, the Sports Car Racing Association of Monterey Peninsula (SCRAMP), leased the property from the Army and managed the track independently. In 1974, LSRA was deeded to the County of Monterey and SCRAMP operated the facility under a long-term concession agreement. SCRAMP moved to a month-to-month concession agreement from March 2014 to January 1, 2017, and then from January 1, 2017 to December 31, 2019, under a management agreement. In December 2019, the County entered into a management agreement with A&D Narigi Consulting, LLC., (A&D) from January 1, 2020, to the present.
Financial Performance:
The Financial Reports present LSRA revenue, expenses, and net income/(loss) by fiscal year for the past seventeen years. Prior to FY 2021, LSRA accounting was reported under General Fund, Parks Unit. In FY 2021, a policy decision was made to transition LSRA accounting to an Enterprise Fund. The key differences between a G...
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