Title
Receive a presentation from A&D Narigi Consulting, LLC, regarding an Operations Update for Laguna Seca Recreation Area.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors receive a presentation from A&D Narigi Consulting, LLC, regarding an Operations Update for Laguna Seca Recreation Area.
SUMMARY/DISCUSSION:
A&D Narigi Consulting, LLC (A&D) was awarded the management agreement for Laguna Seca Recreation Area effective January 1, 2020. A&D has requested to present directly to the Board of Supervisors an operations update which is attached.
Within the presentation prepared by A&D, is a section outlining financial data where a subtotal is titled "NOI before MoCo" in both FY 2020/21 and FY 2021/22. To add clarity, NOI refers to Net Operating Income which is a defined term in the management agreement as "the fiscal year annual net operating income (or portion thereof) derived from or arising out of activities at the Management Premises. NOI shall be determined on a cash basis by calculating all Gross Revenue received on a fiscal yar basis minus all fiscal year operational expenses including Management Fee Expenses and Allowed Expenses." The presentation of a subtotal "NOI before MoCo" does not represent the mutually agreed upon determination of NOI. A&D is presenting a subtotal which may present the appearance that "MoCo" expenses are not related to operations or subject to NOI calculations, however the "MoCo" labeled expenses are mission critical services for operations as follows:
Fiscal Year 2020/21 Fiscal Year 2021/22
Contract Oversight/Accounting $346,646 $359,752
Insurance Coverage $283,126 $381,746
Courier Services $1,623 $1,987
Fleet Lease/Services $214,778 $261,001
Cost Plan $150,677 $960,738
Total Act...
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