Agenda - 06-19-2012 - 5o - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 19, 2012 Action Agenda Item No. 5 -o SUBJECT: SportsPlex Facility Management Agreement Renewal DEPARTMENT: Environment, Agriculture, PUBLIC HEARING: (YIN) No Parks and Recreation (DEAPR) and Asset Management Services (AMS) ATTACHMENT(S): Original Management Agreement Renewal Agreement INFORMATION CONTACT: David Stancil, (919) 245 -2522 Pam Jones, (919) 245 -2652 PURPOSE: To consider renewing an agreement with Recreation Factory Partners, LLC, to provide facility management for the Triangle SportsPlex. BACKGROUND: Orange County acquired the Triangle SportsPlex in December of 2005. At that time, the Board of Commissioners directed that County employees not be utilized in the management of the facility. Based on its expertise in operating such facilities, Recreation Factory Partners, LLC ( "RFP ") was installed as the managing entity. In December 2007, the County renewed the agreement for one five -year term, which is set to expire June 30, 2013. RFP is considering some long -term development options within its overall business and has requested the County consider renewing the agreement at this time in order for the SportsPlex component to be considered appropriately in its business plan. Terms of the renewal as proposed are as follows: • The existing agreement will be renewed for a period of five years (through June 30, 2018), with an automatic renewal for an additional five years (through June 30, 2023) provided the aggregated prior five (5) year operating revenues exceed aggregated five (5) year operating expenditures by a combined, nominal amount of a guaranteed $1.2 million. In the event the revenue guarantees are not met, the County may choose to terminate the contract as of June 30, 2018, and the renewal through June 30, 2023 would not go take effect. The County may terminate the agreement for cause anytime by providing a 90 -day notice to RFP.