Agenda - 12-05-2005-5l - Laserfiche WebLink

Browse Search

2 Management Agreement At the November 2, 2005 regular meeting, the Board gave preliminary approval to an agreement with Recreation Factory Partners (RFP) for their overall management of the SportsPlex facility and programming. Since that time, staff and the County s project manager have held numerous conversations and meetings with RFP to identify potential operational issues and policies and the County's outlook regarding those, RFP's initial approach to managing the facility will be to evaluate existing staff, programs, and structure and to make incremental adjustments (or major changes, should the need to do so become evident) during the interim budget period that will run from closing through the end of June 2006. RFP will explore options for enhancing the current food service operation with an eye towards encouraging facility users to stay on site for meals and snacks. RFP is expected to be able to acquire some products and services at discounted rates resulting from their wider operations throughout North Carolina, but will also explore opportunities to buy goods and services locally in keeping with the County's economic development goals, At this December 5 meeting, the BOCC is requested to formally approve the management agreement with RFP. The agreement will run through June 30, 2008, and will be subject to renewal thereafter based on mutual consent of the County and RFP. Changes from the version of the agreement reviewed by the BOCC at the November 2 meeting (including "filling in the blanks") are highlighted in the attached, updated version of the management agreement. SportsPlex Operating Budget Staff have worked with RFP tc develop a SportsPlex operating budget that will cover the period from closing through June 30, 2006. Detailed revenues and expenditures will be managed and tracked on a daily basis by RFP using their own accounting software, The County will account for overall SportsPlex operations, capital expenditures, and debt service through a separate enterprise fund. A thumbnail review of anticipated operating revenue and expenses for the balance of FY 2005-06 is included in the "Financial Impact" section of this abstract.. A budget amendment formally establishing the necessary appropriation for the balance of FY 2005-06 will be brought back for BOCC approval at the December 13 meeting, The interim SportsPlex operating budget is purposefully based on current operations experience and infrastructure, relying heavily on the numbers audited by Blackmon & Sloop, for several key reasons: 1) to prevent any immediate interruption in the expected services and quality of customer service during the transition in ownership; 2) to most efficiently assume the operations of swell-established going concern; and 3) to allow the County, as owner, and its new manager (RFP) to best navigate and manage the experience of assuming control of the going concern and prepare a more accurate operating budget in line with improved operating efficiencies for FY 2006-2007 and beyond, The SportsPlex Operating Budget for FY 2006-2007 will be developed jointly between RFP and County staff through the normal annual budget process starting in January 2006, Recommended capital improvements will also be developed in accordance with the County's 2006-16 CIP schedule. The operating and capital budgets for the first full fiscal year of County ownership will be reviewed, discussed, and approved by the BOCG as part of the overall 2006- 2007 budget process.