TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Leigh Sears, Concessions Manager
SUBJECT: Approval of Lake Berryessa Interim Concession Contracts
RECOMMENDATION
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Director of Public Works requests approval of and authorization for the Chair to sign the following Agreements for the term November 1, 2023 though October 31, 2024 with an option to extend for one additional year, in return for 3% of gross revenue from operating the resort areas at Lake Berryessa:
1. Agreement No. 240192B for the Steele Canyon resort area with Steele Canyon Campground, Inc.; and
2. Agreement No. 240193B for the Spanish Flat resort area with Spanish Flat Campground, LLC.
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EXECUTIVE SUMMARY
The Spanish Flat and Steele Canyon resort areas at Lake Berryessa are currently operated under interim concession contracts with Sun Lake Berryessa LLC (Sun Communities). Sun Communities assumed operation of these resort areas while it investigated the feasibility of developing and operating both sites long-term. On June 27, 2023, Sun Communities announced it was no longer pursuing a long-term agreement for the resort areas, and that it would cease operating the sites on October 31, 2023.
The new interim concession contracts are with the same operators Sun Communities hired to run the Steele Canyon and Spanish Flat resort areas. They formed new corporate entities to assume operations because they will no longer be working for Sun Communities. They will operate the resort areas under substantially the same terms and conditions as the existing interim contracts, in return for paying the County 3% of the gross revenue realized from operating the sites.
FISCAL & STRATEGIC PLAN IMPACT
Is there a Fiscal Impact?
Yes
Is it currently budgeted?
No
Is it Mandatory or Discretionary?
Discretionary
Discretionary Justification:
Sun Communities is ceasing operations on October 31, 2023.
Is the general fund affected?
No
Future fiscal impact:
County will receive 3% of gr...
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