Title
a. Consider approving a two three-year management agreement between Monterey County and Sports Car Racing Association of the Monterey Peninsula (SCRAMP) retroactive from January 1, 2017, for management services at the Laguna Seca Raceway Area (LSRA); and
b. Authorizing the Chair of the Board to execute the Agreement. (REVISED VIA SUPPLEMENTAL)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Consider approving a two three year management agreement between Monterey County and Sports Car Racing Association of the Monterey Peninsula (SCRAMP) retroactive from January 1, 2017, for management services at the Laguna Seca Raceway Area (LSRA); and
b. Authorizing the Chair of the Board to execute the Agreement.
SUMMARY/DISCUSSION:
The Sports Car Racing Association of the Monterey Peninsula (SCRAMP) has a long history of operating and managing the race track and other facilities located within the Laguna Seca Recreational Area (LSRA). SCRAMP's most recent concession agreement expired on March 31, 2014 and since then it has operated and managed the race track on a month-to-month basis.
The County has been negotiating with responding parties for a long-term concession agreement; however, with the 2017 racing season quickly approaching, the County needs operation and management services. For this purpose, the County and SCRAMP reached mutually acceptable terms for the operation and management of the LSRA. The short-term agreement supplants the holdover agreement under which SCRAMP and the County have operated.
SCRAMP will receive an annual Management Fee from the County for the performance of its services, an amount equal to SCRAMP's annual actual management costs. To insure adequate cash flow for SCRAMP to perform its obligation under the agreement, the County will provide SCRAMP a Management Fee Advance of $270,000 on the last day of each month for the length of the agreement. At the end of each calendar year, the County and SCRAM...
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