From
Gary Yakesch
Title
Authorize city manager to execute a management agreement with American Resort Management Inc. to operate Epic Waters for an initial term of five (5) years with the option to renew for two (2) additional five (5) year terms
Presenter
Rick Herold, Director of Parks, Arts, and Recreation
Recommended Action
Approve
Analysis
In October 2014, City Council adopted an ordinance for architectural services with HKS Architects to begin design work on The Epic. Shortly after this, request for proposals were developed and distributed to aquatic management entities for consulting, pre-opening services, and operational management; these proposals were received in Purchasing on December 29, 2014. After evaluation, personal interviews were conducted on January 14, 2015 by a selection committee composed of city staff. Based on the qualifications and interviews, American Resort Management, Inc. was recommended for the consulting, pre-opening services and operational management of the waterpark - Epic Waters.
City Council approved an ordinance on March 3, 2015 to fund pre-opening consulting work for American Resort Management. Agenda item 15-4414 contained the ordinance as well as identified American Resort Management as the selected candidate for the operational management of Epic Waters.
Under the operational management agreement, American Resort Management Inc will have the exclusive right, authority and discretion to direct, supervise, manage and operate Epic Waters on a day-to-day basis during the term of the agreement. In return, American Resort Management Inc will receive 4% of gross revenues as base compensation as well as incentive compensation based on city approved performance criteria. All compensation (both base and incentive) and required appropriations (pre-opening, operational and capital) will be subject to approval through the annual city budget process. Pre-opening operational expenditures are anticipated to start in FY 2017.
This proposed management agreement was presented and approved by the Finance and Government Committee on June 7, 2016 and is now forwarded for City Council consideration with the June 21, 2016 agenda.
Financial Consideration
None at this time. Financial consideration will be approved through the annual city budget process.