UMA WITH PHOENIX KART RACING ASSOCIATION.PDF
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Phoenix Kart Racing Association
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Use Management Agreement
Between
Maricopa County
And
Phoenix Kart Racing Association, Inc.
For the Promotion, Redevelopment, Management, Operation, and Maintenance of the
Phoenix Kart Racing Association Facility located at Adobe Dam Regional Park
#C_________________
This Use Management Agreement (hereinafter referred to as “Agreement”) is entered into between Maricopa
County, a political subdivision of the State of Arizona (hereinafter referred to as “County”), acting on behalf of
its Parks and Recreation Department (hereinafter referred to as “MCPRD”) and Phoenix Kart Racing Association,
Inc., an Arizona nonprofit corporation (hereinafter referred to as “Concessionaire”). The County and the
Concessionaire are collectively referred to as “Parties” or individually as a “Party.”
RECITALS
WHEREAS, the County is authorized to enter into this Agreement pursuant to A.R.S. §§11-201, 11-
251 and 11-933; and
WHEREAS, the County believes the public interest can best be served by contract operation and
redevelopment of the existing asphalt kart racing recreational facility at Adobe Dam Regional Park (“Park”)
which comprises a portion of the Maricopa County Regional Parks System; and
WHEREAS, the County and the Flood Control District of Maricopa County, a political subdivision of
the State of Arizona (“District”), entered into that certain Joint Use Agreement, dated September 8, 1981, as
amended by that certain (i) First Amendment to Joint Use Agreement dated June 21, 1993, recorded as Document
No. 1993-0421100 on June 29, 1993, in the Official Records of Maricopa County, Arizona (“MCR”); (ii) Second
Amendment to Joint Use Agreement dated May 19, 1999, recorded as Document No. 1999-0513221 on May 28,
1999, and re-recorded as Document No. 1999-0666862 on July 14, 1999, in the MCR; (iii) Third Amendment to
Joint Use Agreement dated June 7, 2006, recorded as Document No. 2006-0840478 on June 22, 2006, in the
MCR; and (iv) Fourth Amendment to Joint Use Agreement dated September 22, 2016, recorded as Document
No. 2016-0763640 on October 18, 2016, in the MCR (collectively, the Joint Use Agreement); and
WHEREAS, this Agreement is the result of a solicitation (Serial #180246-ITN Promote, Manage,
Operate, Maintain and Improve the Existing Kart Racing Complexes, or Provide an Alternate Recreational
Facility at Adobe Dam Regional Park) released by the County on June 26, 2018 (“ITN”); and
WHEREAS, Concessionaire submitted a response to the ITN and desires to design, improve, expand,
and redevelop the existing Phoenix Kart Racing Association facility on approximately twenty-four (24) acres of
the Park (the “Complex”) as described in Concessionaire’s ITN response (“ITN Response”); and
WHEREAS, the Parties agree the intent of this Agreement is solely for the development, operation,
maintenance, management, and improvement of the Complex and does not convey any interests in land or any
property rights.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements
herein contained and other good and valuable consideration, the sufficiency and adequacy of which the Parties
acknowledge, the Parties agree as follows:
1.
Recitals. The Recitals, by this reference, shall be incorporated herein and made a part of this Agreement.
2.
Definitions.
A. Adjusted Gross Revenue: All Gross Revenue (defined below) generated by a concession adjusted
downward for limited MCPRD authorized deductions.
B. Annual Management Plan (AMP): The AMP is an annual review conducted jointly by the Parties
to review present, and the next year’s plan for development and/or operations of the Complex, as a
Phoenix Kart Racing Association
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fully described in Exhibits 1 through 11 of this Agreement, all of which are attached hereto and
incorporated herein by this reference.
C. Contract Year: A Contract Year is from January 1st through December 31st, except the first
Contract Year of this Agreement, which will be from the Effective Date (as defined in Section 5(A)
below, through December 31, 2021.
D. Gross Revenue: Gross revenue is all monies and/or other revenues generated and/or received by
the Concessionaire’s operations on, or associated with, the Complex before allowable deductions.
The allowable deductions are set forth in Exhibit 8 – Accounting and Fees.
E. Market Value: Market Value is the value of improvements owned by Concessionaire as shall be
determined by a certified real estate appraiser, as defined per A.R.S §32-3601, who is experienced
at appraising recreational facilities and is agreed upon by the Parties unless otherwise noted in this
Agreement.
F. Minimum Fee: A base concession fee required to be paid by the Concessionaire to the County in
the amount of either: (1) a specified fixed amount; or (2) based on a percentage of total Gross
Revenue or Adjusted Gross Revenue (as defined hereinabove) in accordance with the payment
schedule outlined in this Agreement.
G. Opening Date: The Opening Date is the date the Complex, or a portion thereof, initially opens to
the public.
3.
Incorporation of ITN. The ITN and the ITN Response are incorporated herein and made part of this
Agreement by reference. If there is any conflict between the provisions of the ITN, ITN Response, and
this Agreement, the provisions of this Agreement shall supersede and control.
4.
Scope of the Complex.
A. The County hereby grants the Concessionaire the right to design, redevelop, expand, manage and
operate the Complex with the improvements illustrated in Exhibit 1 – Complex Conceptual Site
Plan, which is more fully described in Exhibit 2 – Complex Activities and Parameters as attached
hereto and made a part hereof.
B. The Complex shall conform, at a minimum, to each of the descriptions, terms, and conditions set
forth in Exhibits 1 through 11 of this Agreement, all of which are attached hereto and incorporated
herein by this reference, and shall comply with the requirements of the pertinent land patent(s), the
existing Park’s master plan and/or the Park’s updated master plan, and the District’s Flood
Impoundment Restrictions and Guidelines (Exhibit 3 - Development of the Complex - Appendix
One Flood Impoundment Area Guideline and Restrictions), Phoenix City Streams Flood Control
Project regulations, any approved amendments or revisions thereto.
C. The Concessionaire shall not use Complex for purposes other than uses permitted under the terms
of this Agreement without express written consent and approval of County.
D. The Concessionaire, at its sole cost and expense, shall obtain all applicable permits, environmental
compliances, taxes, assessments, fees, and other expenses of any nature associated with the
operation, redevelopment, improvement, and expansion of the Complex, as well as management,
operation, and maintenance of the Complex, as more fully described in Exhibits 1 through 11
attached hereto and made a part hereof. Notwithstanding the foregoing, the Concessionaire shall
not be liable for any expenses for or associated with improvements initiated by the County and the
District for their purposes and unrelated to Concessionaire activities.
E. At the time of execution of this Agreement, Concessionaire anticipates the cost of Complex
redevelopment and expansion to be approximately two hundred fifity thousand dollars ($250,000).
F. Concessionaire shall complete the design and construction of the Complex in accordance with the
schedule below and Exhibit 3 – Development of the Complex, attached hereto and made a part
hereof.
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Year
PKRA Phasing Schedule (Subject to Funding)
1-2
Design and Construct an Arrive and Drive Kart Racing
Upgrade Track Lighting
Installation of Spectator Seating and/or Bleachers
Install Additional Storage Units for Karts
3
Design and Construct a Drone Obstacle Course
Install Additional Storage Units for Karts Design and Construct an Off-Road Track
4
Install Additional Storage Units for Karts
5-20
Design and Construct Additional Contemplated Improvements set forth in Exhibit 2
1) If development impediments described in Exhibit 3 – Development of the Complex cause the
improvements proposed in Years 1-4 of the Complex to extend past the years set forth in the
Phasing Schedule in this Section F, the County may, but is not required to, grant a reasonable
extension of the construction completion year, not to exceed two (2) years.
2) If Concessionaire concludes, in its reasonable judgment, that it will be unable to build all of the
improvements proposed on Exhibit 1– Complex Conceptual Site Plan and/or develop and use
a significant portion of the land due to development impediments as noted in Exhibit 3 -
Development of the Complex, then, in the County’s sole discretion, either: (i) the
Concessionaire shall immediately cease to use the portion of the land that cannot be developed
and, within sixty (60) calendar days of Concessionaire’s notification to the County that the land
cannot be developed as set forth in this Agreement, the Parties shall amend this Agreement to
reflect the reduction in the size of the Complex and the revised Complex elements; or (ii) the
County may terminate the Agreement in accordance with Section 6 of this Agreement.
G. If any of the proposed improvements to the Complex require a new or modified Occupancy Permit
or Partial Occupancy Permit, the Concessionaire shall not occupy the Complex or that portion of
the Complex until the Occupancy Permit or Partial Occupancy Permit is issued by the jurisdictional
authorities, along with the written consent and approval of the County. Concessionaire shall
commence operations and maintenance of each new improvement within the Complex within six
(6) months from receipt of the new or modified Occupancy Permit (if applicable) and the written
consent of the County.
H. The Concessionaire shall not commence with any modifications to the Complex, permitted plans,
or any new construction, development, or improvements after Complex completion without the
express written consent and approval of the County and the District.
5.
Term and Fees.
A. The term of this Agreement shall be Twenty (20) years (“Term”), commencing on the date it is fully
executed by the Parties (“Effective Date”).
B. Renewal Term. Upon Concessionaire’s request, at the County’s sole discretion, and upon mutual
agreement of the Parties, this Agreement may be renewed for up to three (3) terms of five (5) years
each (each a “Renewal Term”) subject to each of the following conditions:
1) The Concessionaire shall provide written notice of a request to renew or not to renew no later
than one hundred and eighty (180) calendar days prior to the date the Term or Renewal Term,
as the case may be, is scheduled to expire; and
2) The Renewal Term shall be upon the same terms and conditions as the final year of the initial
Term except that the Parties shall negotiate a reasonable adjustment to the Annual Fee and
Additional Fees Over Minimum, as defined and administered in Exhibit 8 – Accounting and
Fees, attached hereto and made a part hereof, upon the start of the Renewal Term. The
reasonable adjustments shall be based on, but not limited to, Market Value of the property,
Concessionaire’s investment of capital improvements and ongoing maintenance costs, revenue
generation and sustainability of Concessionaire’s recreational activity(ies); and
3) The Renewal Term shall be approved by the County and the District; and
4) The Parties hereby agree neither the County nor the District, shall be liable to the
Concessionaire or any of its officers, employees, agents, or contractors at law or in equity for
not approving a Renewal Term.
C. Fees. The Concessionaire shall pay the County Annual Minimum Fees as shown in the fee payment
schedule below (“Fee Payment Schedule”) and as administered in Exhibit 8 - Accounting and
Fees.
Fee Payment Schedule
Phoenix Kart Racing Association
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6.
Termination.
A. This Agreement may be terminated for cause in whole or in part, at any time, by the County, upon
sixty (60) calendar days prior notice to the Concessionaire without any penalty or liability to County.
Concessionaire and its employees, agents, officers, directors, members, successors, or assigns
hereby waive any and all rights to bring any claim against County or its employees, agents, officers,
directors, members, successors or assigns from or relating in any way to County’s termination of
this Agreement. Representative reasons for “cause” include, but are not limited to: (i) the real
property, or a portion thereof, reverts to the agency from which any patent was received; (ii) the real
property is no longer useful for a recreational purpose; and/or (iii) new requirements imposed upon
the County make a continuation of the Agreement unreasonable.
B. The Parties acknowledge that this Agreement is subject to cancellation pursuant to the provisions
of A.R.S. § 38-511.
C. This Agreement may be terminated without cause with the mutual agreement of the Parties. The
Party requesting the termination must submit its request, in writing, a minimum of one hundred
eighty (180) calendar days in advance of the requested termination date. Notice of the request for
termination shall be sent to the other Party pursuant to the notice provisions set forth in Section 15
of this Agreement. If the request for termination is initiated by the Concessionaire, the County may
select an interim operator (or may choose to become the interim operator) to act as the
Concessionaire until a replacement concessionaire has been selected. Within forty-five (45)
calendar days of the date the interim operator commences operations, or sooner if the Parties agree,
the Concessionaire shall pro-rate any membership fees, fees paid for a future service or other fees
and shall pay such pro-rated amount to the interim operator. The Concessionaire shall pay to the
interim operator all security deposits received by Concessionaire for tournaments, events, or
functions be held at the Complex, scheduled after the termination date of this Agreement.
D. Should the Concessionaire, with the consent of the County, continue to provide the services
described hereinafter the expiration of the Term and/or any Renewal Term, without having entered
into a subsequent agreement of like nature and content to this Agreement, this shall be deemed a
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holdover of the Complex on a month-to-month basis, not to exceed a period of twelve (12) months,
with all of the terms and conditions of this Agreement to continue in full force and effect. If the
Parties have not entered into a new agreement by the end of the twelve (12) month period, the
Concessionaire is required to vacate and may no longer holdover.
7.
Default.
A. It shall be a default and breach of this Agreement by Concessionaire if any of the following shall
occur at any time during the Term or Renewal Term:
1) Failure to make payment of any monetary sums specified to be paid by the Concessionaire
under this Agreement on or before the date the same shall become due, and such failure
continues for a period of thirty (30) calendar days after notice of such default is given to the
Concessionaire.
2) Failure of the Concessionaire to make satisfactory progress, in the County’s sole discretion, to
meet the mutually agreed-upon annual milestones set forth for each Contract Year.
3) Failure to operate and maintain the Complex, as more fully described in Exhibits 2 through
11, attached hereto and made a part hereof, pursuant to the terms and conditions of this
Agreement, where such failure continues for a period of thirty (30) calendar days after notice
of such default is given to the Concessionaire, provided, however, that if such default is of a
nature that it cannot reasonably be cured within said thirty (30) calendar days, then the cure
period may be extended by the County, in writing, for such longer time as may be reasonably
necessary, so long as the Concessionaire commences to cure the failure within said thirty (30)
day period, in good faith and with due diligence, and thereafter diligently and continuously
pursues the same to completion.
4) A breach of Concessionaire’s representations and warranties set forth in Section 13 of this
Agreement.
5) Institution or filing by or against the Concessionaire of insolvency, receivership or bankruptcy
proceedings or any other proceedings for the settlement of Concessionaire’s debts and not
dismissed within ninety (90) calendar days from the date of such filing or institution.
6) Appointment of a receiver, guardian, conservator, trustee or assignee, or any other similar
officer or person to take charge of all of the property or businesses of the Concessionaire and
such appointment is not vacated within ninety (90) calendar days after the date of appointment.
7) Any general assignment for the benefit of creditors by Concessionaire.
8) All of the Concessionaire’s assets located at the Complex or interest in the Complex being
subjected to attachment, execution or other judicial seizure.
9) Insolvency of the Concessionaire.
10) Concessionaire’s dissolution or ceasing to do business.
B. Upon determination by the County that the Concessionaire is in default, the County shall be entitled,
at its discretion and selection, to exercise one or more of the following remedies:
1) Terminate this Agreement, without penalty or liability to the County, by giving the
Concessionaire notice of termination. Upon the issuance of the notice of termination, all of the
Concessionaire’s rights in the Complex and under this Agreement shall terminate immediately.
Within the notice of termination, the County, in its sole discretion, shall direct the
Concessionaire to (i) surrender and vacate the Complex, and the County may enter and take
possession of the Complex and eject all parties in possession, or eject some and not others, or
eject none; or in the alternative, (ii) the County may, at the Concessionaire’s sole cost, and
expense (1) demolish and/or remove all, or a portion of, improvements on the Complex and
return the property, or a portion of the property, to a condition as similar as possible to the
condition of the property at the time of execution of this Agreement; and/or (2) remove all
personal property, trade fixtures, equipment, and inventory owned by Concessionaire and repair
any damage caused to the Complex as a result of the removal of built-in fixtures; and/or (3)
remove all garbage and debris, to include inoperable or obsolete equipment, from the Complex,
all by the date(s) specified by the County.
a) Termination under this Section shall not relieve the Concessionaire of the obligation for
payment of any sums then due to the County or from any claim for damages previously
accrued or then accruing against the Concessionaire. In addition, if the Concessionaire
fails to remove all personal property and garbage/debris from the Complex in the
timeframes specified by the County, Concessionaire shall pay all costs incurred by the
County to remove and dispose of such property in any manner it may deem desirable,
within thirty (30) calendar days of receipt of an invoice from the County
b) If the Agreement is terminated for default, the Concessionaire shall, and hereby covenants
to, peaceably and quietly surrender the Complex to the County and to execute and deliver
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to the County such instruments as shall be required by the County, to evidence termination
of the Concessionaire’s rights hereunder, its interest herein, and to certify that the
Concessionaire has not encumbered the Complex.
2) The County may exercise any other remedy available at law or in equity.
C. It shall be a default and breach of this Agreement by County if the County fails to perform any of
its material obligations hereunder and such failure to perform continues for a period of thirty (30)
calendar days after written notice thereof from the Concessionaire to the County (unless such failure
cannot reasonably be cured within thirty (30) calendar days. In this event, the County shall have
commenced curing said breach or failure within said thirty (30) calendar day period and shall
diligently pursue cure of the failure or breach to completion to avoid being in default). Should the
County continue to be in default without the pursuit of a cure, the Concessionaire may terminate
this Agreement with a ninety (90) calendar day written notice to the County.
8.
Surrender. Upon the expiration date or any termination date for reasons other than the default of the
Concessionaire, the Concessionaire shall, unless otherwise approved by the County, within sixty (60)
calendar days from the expiration date or termination date of this Agreement, at the County’s sole
discretion, conduct three (3) or more of the following tasks:
A. Execute a Certificate of Acknowledgement that the Concessionaire has vacated and relinquished all
possessory rights to the Complex to the County as well as represent and warrant that the
Concessionaire has not encumbered the Complex; and/or
B. Demolish and/or remove all, or a portion of, the improvements on the Complex as specified by the
County and return the property to a condition as similar as possible to the condition of the property
at the time of execution of this Agreement; and/or
C. Remove all personal property, trade fixtures, equipment, and inventory owned by Concessionaire
from the Complex and repair any damage caused to the Complex as a result of the removal of built-
in fixtures. Any such items not removed within the specified timeframe shall be deemed to be
abandoned by Concessionaire. Concessionaire shall pay all costs incurred by the County to remove
and dispose of such property in any manner it may deem desirable, within thirty (30) calendar days
of receipt of an invoice from the County; and/or
D. Remove all garbage and debris, including inoperable or obsolete equipment, from the Complex. If
Concessionaire fails to remove all garbage and debris (including inoperable or obsolete equipment)
within such timeframe, Concessionaire shall pay all costs incurred by the County to remove and
dispose of said items within thirty (30) calendar days of receipt of an invoice from the County.
9.
Financing.
A. The Concessionaire may not mortgage or encumber any improvements that are permanently affixed
to the land or any lands upon which the Complex lies. Improvements that can be disassembled and
removed without damage to the underlying real estate are not considered permanently affixed (e.g.,
above groundwater treatment).
B. The Concessionaire or any of its contractors or subcontractors shall not have any authority to create
any lien against the County for labor, materials, or services furnished by the Concessionaire, its
contractors, or subcontractors. If, because of any act or omission (or alleged act or omission) of the
Concessionaire, any mechanic’s, materialman’s or other liens, charge or order for the payment of
money shall be filed or recorded against the County (whether or not such lien, charge or order is
valid or enforceable as such), the Concessionaire shall immediately notify the County. The
Concessionaire will, at its own expense, cause the same to be canceled and discharged of record
within thirty (30) calendar days after the Concessionaire received notice of the filing thereof, or the
Concessionaire may, within the said period of time, furnish to the County a bond satisfactory to the
County against said lien, charge or order, in which case the Concessionaire will have the right in
good faith to contest the validity or amount thereof, as provided by law.
10.
Indemnification and Insurance.
A. The Concessionaire, for itself, its agents, officers, directors, partners, vendors, contractors,
employees, assignees, sub-concessionaires, licensees, invitees, or any and all other persons claiming
rights through the Concessionaire, shall, to the fullest extent permissible by law, indemnify, defend
and hold harmless the County, including agents, officers, directors, and employees thereof, from
and against any and all loss or expense of any nature whatsoever, incurred as a result of any claim
or suit of any nature whatsoever, which arises in any way, either by neglect, willfulness, action,
omission to act or other failures of any nature whatsoever pursuant to this Agreement. The
Concessionaire shall be liable and responsible for, including but not limited to, reasonable attorneys’
fees, court costs, awards and other expenses relating to the defense against claims or litigation,
incurred by the County. This clause shall, in all instances, be interpreted to find that the obligation
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to defend, indemnify, and hold harmless does fall to Concessionaire. The scope of this
indemnification does not extend to the sole negligence of the County.
B. The Concessionaire shall secure and maintain the following insurance coverage within five (5)
business days of the Effective Date:
1) Public liability insurance, including bodily injury/property damage, auto liability, products and
completed operations liability, liquor liability, and contractual liability, providing limits of no
less than two million dollars ($2,000,000) per claim and four million dollars ($4,000,000)
aggregate limits, or evidence of self-insurance acceptable to the County, for injuries or damage
received or sustained by any person(s), or property at the Complex.
2) Waiver of Subrogation/recovery against the County shall be included in all policies.
3) Coverage must include sexual molestation for the limits of $1,000,000 per occurrence and
$2,000,000 aggregate.
4) Environmental cleanup and pesticide/herbicide coverage shall be included unless
documentation provided by the Concessionaire that this is not available or feasible.
5) Worker’s Compensation, if applicable, with limits not less than $1,000,000 for each accident,
$1,000,000 disease for each employee, and $1,000,000 disease policy limit.
6) Property insurance in an amount sufficient to rebuild the improvements in case of a casualty
loss. Concessionaire shall notify the Contract Administrator immediately upon any property
insurance claim submission. County will be an “additional payee” pursuant to such policy. The
Concessionaire will be entitled to receive and shall be obligated to apply insurance proceeds to
repair or reconstruct damaged improvements. Insurance proceeds shall be disbursed pursuant
to customary construction lending practices in the Phoenix, Arizona area, as such repair and
restoration are being made and subject to such procedures as the County may reasonably require
monitoring the application of such proceeds.
7) The insurance coverages will be reviewed annually, no later than December 31 of each year, as
part of the AMP pursuant to the terms of the Agreement. The County reserves the right to
request a copy of all claims (including but not limited to incident reports, damages).
8) The County reserves the right to revise the minimum required limits of insurance during the
term of this Agreement, provided the changes are consistent with market conditions, prudent
business judgment, and industry standards.
C. The County and the District shall be named as “additional insureds” under all policies of insurance.
Copies of all insurance policies or certificates thereof will be made available to the County upon
request. Copies of the Certificate of Insurance will be furnished annually to the County. The County
will be given thirty (30) calendar days advance written notice of cancellation of a policy, non-
renewal, or change in coverage or limits.
D. The Concessionaire assumes all risk of loss and shall be responsible for any and all losses to the
Complex and all improvements, acquired or developed within the Complex after the Effective Date.
The loss to the Complex may result from but is not limited to, theft, vandalism, fire and any fire-
fighting activities (including prescribed burns), floods, droughts, landslides, rising waters, winds,
falling limbs or trees and acts of God. If, prior to commencement of, or during, the Term or Renewal
Term of this Agreement, any property, real or personal, under the control of the Concessionaire or
any buildings or improvements or such fixtures or equipment on, below, above, or appurtenant to
the Complex at the commencement of the Term or Renewal Term or hereafter erected, installed or
placed thereon shall be destroyed or damaged in whole or in part by any cause except condemnation,
the Concessionaire will notify the County immediately. The Concessionaire will immediately
secure the area to prevent injury, vandalism, or further damage to persons, improvements, and
contents thereof and direct its insurer to make any payment to the appropriate Party.
E. If the destroyed or damaged buildings, improvements, fixtures or equipment under the control of
the Concessionaire are capable of restoration, in the reasonable judgment of the County and
Concessionaire, this Agreement shall continue in full force and effect, except that established fees
payable to the County by the Concessionaire, to the extent not covered by insurance, shall be abated
to the extent that the damage or restoration interferes with the Concessionaire’s operations. The
Concessionaire agrees to cooperate in the determination of the abatement or other relief to be
provided by furnishing all information requested relative to its operations, permitting examination,
and audit of all accounting records kept in connection with the conduct thereof. , The abatement of
fees may be negotiated in relation to the percentage of damage. Fee abatement(s) may be granted
for a period of not more than one hundred eighty (180) calendar days. The Concessionaire will, as
soon after the damage as reasonably possible, apply for all permits required to restore damaged
improvements, and complete restorations within a date mutually agreeable to the Parties. Should
such damage or destruction occur within thirty-six (36) months of this Agreement’s scheduled Term
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date or Renewal Term, or if the damage destroys in excess of fifty percent (50%) of the appraised
value of the Complex on the date of loss (as determined by an independent appraiser), then the
Concessionaire or the County shall have the option to terminate this Agreement in whole or in part.
If this Agreement is terminated pursuant to this provision, any insurance proceeds shall be applied
first to remove any damaged or destroyed improvements and second to pay any loans to the
Concessionaire secured by its interest in this Agreement or any property covered hereby. The
balance of the proceeds shall be divided by the County and the Concessionaire in equal proportions.
11.
Assignment.
A. The Concessionaire shall not transfer, sell or assign, transfer or subcontract, in whole or in part, the
Concessionaire’s rights or interests in the Agreement without the prior written approval of the
County.
B. The Concessionaire shall provide at least ninety (90) calendar days prior to the date of the proposed
transfer, written notice of a sale, or assignment of this Agreement, so any requested analysis, study,
and subsequent County approval can be completed prior to the effective date of the transfer, sale or
assignment.
1) The Concessionaire shall deposit with the County a minimum nonrefundable administrative
transfer fee (“Administrative Fee”) of two thousand five hundred dollars ($2,500.00) upon
notification of a potential sale, transfer, or assignment to reimburse County for administrative
costs associated with the transaction.
2) In connection with a full transfer, sale or assignment to a designated assignee, the
Concessionaire shall provide the County, for review, any information requested by the County
for purposes of transfer, sale or assignment of this type of business operation including, but not
limited to, the following:
a.
Business and management capability of the designated assignee; and
b. A financial analysis of the Complex operation, including an appraisal of real property
improvements and/or furniture, fixtures and equipment that are included in the transaction,
be conducted before approving a transfer, sale or assignment; and
c.
A background check, including a financial profile and criminal history of the key
individuals of the designated assignee.
C. The Concessionaire, upon no less than ninety (90) calendar days prior written notice to the County,
may partner or subcontract with other entity(ies) to operate units of the Complex, provided that, all
gross revenues from partners, subcontractors, vendors and events shall be included in revenue
reporting as per Exhibit 8 - Accounting and Fees. Concessionaire is responsible for all actions,
liabilities, and damages of partners, subcontractors, or other entity(ies).
12.
Compliance Requirements.
A. The Concessionaire, for itself and all subcontractors, if any, shall not discriminate against any
employee or applicant for employment because of race, age, handicap, disability, color, religion,
sex, sexual orientation, or national origin. The Concessionaire shall comply with Title VI and Title
VII of the Federal Civil Rights Act, the Federal Rehabilitation Act the Age Discrimination in
Employment Act the Americans with Disabilities Act of 1990, A.R.S. §41-1461 et. seq., A.R.S.
§41-1492 et. seq., 29 U.S.C. §721 (Section 504) and Arizona Executive Order 75-5, which mandates
that all persons shall have equal access to employment opportunities.
B. The Concessionaire, for itself and all subcontractors, if any, agrees to comply with the Immigration
Reform and Control Act (I.R.C.A.) and Arizona statutes, in the performance of this Agreement and,
upon request, permit the County to inspect personnel records to verify such compliance.
C. The Concessionaire, for itself and all subcontractors, if any, shall comply and warrants full
compliance with all federal immigration laws and regulations that relate to their employees, and
their compliance with A.R.S. §23-214 et seq. A breach of this warranty shall be deemed a material
breach of this Agreement that is subject to penalties up to and including termination of this
Agreement. The County retains the right to inspect the papers of Concessionaire or sub-
concessionaires’ employee(s) who work on the Complex to ensure that the Concessionaire or sub-
concessionaire is complying with the warranty provided above. The Concessionaire shall make all
papers and employment records of the said employee(s) available during normal working hours in
order to facilitate such an inspection. Nothing herein shall make any Concessionaire or sub-
concessionaire an agent or employee of the County.
D. The Concessionaire for itself and all subcontractors, if any, warrants that it complies with
verification of employment eligibility and E-Verify Program.
E. If Concessionaire engages in for-profit activity and has ten (10) or more employees, and if this
Agreement has a value of one hundred thousand dollars ($100,000) or more, Concessionaire certifies
it is not currently engaged in and agrees for the duration of this Agreement to not engage in, a
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boycott of goods or services from Israel. This certification does not apply to a boycott prohibited by
50 U.S.C. § 4842 or a regulation issued pursuant to 50 U.S.C. § 4842.
13.
Concessionaire’s Representations. Concessionaire represents and warrants to the County that the
following statements are true and correct:
A. No person or selling agency has been employed or retained to solicit or secure this Agreement upon
an agreement or understanding for a commission, percentage, brokerage, or contingency fee,
excepting bona fide employees or bona fide established commercial or selling agencies maintained
by the Concessionaire for the purpose of securing business. For breach or violation of this warranty,
County shall have the right to recover the full amount of such commission, percentage, brokerage,
or contingency fee.
B. This Agreement is not intended to constitute, create, give to, or otherwise recognize a joint venture
agreement or partnership or formal business organization of any kind between the County and the
Concessionaire and the rights and obligations of the Parties shall be only those expressly set forth
in this Agreement.
C. No person(s) supplied by the Concessionaire in the performance of obligations under the Agreement
is/are considered to be the County’s employees, and no rights of the County’s civil service,
retirement, or personnel rules apply to such person(s).
D. The Concessionaire has total responsibility for determining employee eligibility, all salaries, wages,
insurance of any type, bonuses, retirement withholdings, worker’s compensation, other employee
benefits, and all taxes and premiums appurtenant thereto concerning such persons and shall save
and hold the County harmless with respect thereto.
E. The Concessionaire will ensure full compliance with all applicable terms and conditions of this
Agreement by its agents, employees, vendors, and contractors (including subcontractors of any tier)
and their respective employees. Failure or refusal of the Concessionaire or its agents, employees,
vendors, contractors, sub-contractors, or their employees to comply with these terms and conditions
will be deemed a breach of this Agreement.
F. The Concessionaire has not been debarred, suspended, proposed for debarment, declared ineligible,
or voluntarily excluded from covered transactions by any Federal department or agency.
G. The Concessionaire has not within a three (3) year period preceding this Agreement been convicted
of or had a civil judgment rendered against them for the commission of fraud or a criminal offense
in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local)
transaction or contract under a public transaction; violation of Federal or State antitrust statutes or
commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making
false statements or receiving stolen property.
H. The Concessionaire is not presently indicted or otherwise criminally or civilly charged by a
government entity (Federal, State, or local) with the commission of any of the offenses enumerated
in paragraph (G) of this certification.
I.
The Concessionaire has not, within a three (3) year period preceding this Agreement, had
transactions terminated for default.
The Concessionaire shall include, without modification, Sections 13(F) through 13(I) above in all lower
tier covered transactions (e.g., transactions with vendors, contractors) and in all solicitations for lower
tier covered transactions related to this Agreement.
14.
Representation and Warranties of County. County represents and warrants to the Concessionaire that
the existing land and improvements are being presented “as-is, where-is” as of the Effective Date of this
Agreement. The County does not imply or provide any warranty with respect to the physical aspects of
the Complex except as set forth herein.
15.
Notices.
All notices required under this Agreement shall be in writing and given by email delivery with read
receipt, United States Post Office certified mail with return receipt requested, or by commercial courier
served with a receipt, or by hand delivery with a receipt, to each Party’s following address, or such other
address as either Party may notify the other in writing as provided herein. Any such notice shall be
considered served when communication is received and signed for, or delivery is refused or returned to
the sender as unclaimed.
For the County:
Maricopa County Parks & Recreation Department
Attn: Contract Administrator
41835 N. Castle Hot Springs Road
Morristown, AZ 85342
Email: emily.miller@maricopa.gov
Phone: (602) 506-9511
Phoenix Kart Racing Association
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For the Concessionaire:
Phoenix Kart Racing Association
Attn: President
20118 N. 67th Avenue #300-179
Glendale, AZ 85308
Email: President@pkra.com
Phone: (602) 492-5278
16.
General Provisions.
A. The waiver by either Party of any breach of any one or more of the covenants, conditions or
provisions of this Agreement shall not be construed to be a waiver of any subsequent or other breach
of said covenants, conditions or provisions of this Agreement. Any failure on the part of either Party
to require or exact full and complete compliance with any of the covenants, conditions, or provisions
of the Agreement shall not be construed to, in any manner, change the terms hereof or preclude such
Party from enforcing the full provisions of this Agreement.
B. The paragraph or section headings used in this Agreement are for the purpose of convenience or
reference only. They shall not be construed in any manner, or to any extent, to limit or to extend
the effect or meaning of the terms and provisions contained thereunder.
C. The Parties intend for this Agreement to comply with applicable laws. If any provision of this
Agreement is determined to be invalid, void, or illegal, then such determination shall not affect,
impair, or invalidate any other provision hereof, and the remaining provisions shall remain in full
force and effect, and the Parties shall use their commercially reasonable efforts to restate the invalid
provision to the end that it complies with applicable laws.
D. The Parties agree to act in good faith and with fair dealing with one another in the execution,
performance, and implementation of the terms and provisions of this Agreement. Whenever the
consent, approval or other action of a Party is required under any provision of this Agreement, such
consent, approval or other action shall not be unreasonably withheld, delayed or conditioned by a
Party unless the provision in question expressly authorizes such Party to withhold or deny consent
or approval or decline to take action in accordance with a different standard, in which case the
consent or approval or the decision not to take action may be withheld, delayed or conditioned in
accordance with the different standard.
E. Except as may be otherwise expressly and specifically set forth in this Agreement, no person or
entity shall be deemed a third-party beneficiary of any of the provisions of this Agreement.
F. The Concessionaire agrees to collect data related to recreation uses occurring within the Complex.
The County, or its designated representative, will provide the forms on which to collect the data.
The Concessionaire will not be required to collect or release data to the County that violates any
privacy statutes, regardless of the originator, or is of a nature that identifies specific individuals as
users of the Complex.
G. There is reserved to the County and their successors or agents, the right of the officers, agents,
employees, licensees, and permittees, or the designees of public bodies, at all proper times and
places, freely to have ingress to, passage over, and egress from all of the said lands, to exercise,
enforce, and protecting their rights and the terms and conditions described in and reserved by this
Agreement, including the right of physical entry to the area for inspection, monitoring, or any other
purpose consistent with any right or obligation of the County under any law or regulation, or to
survey Park users and customers at the Complex. Unless there is an emergency, the right of entry
by County must be coordinated with the Concessionaire to ensure safe entry and reasonable flow of
business.
H. The Concessionaire shall not commit or permit any illegal, morally questionable nuisance or unsafe
condition to be created or maintained on the Complex. The Concessionaire shall not operate or
knowingly permit the operation of any illegal acts upon the Complex.
I.
The Concessionaire hereby agrees and shall provide, obtain and maintain, at its sole cost and
expense, all operating permits and licenses and shall comply with all applicable federal, state,
county, local and city statutes, laws, ordinances, rules, regulations, and instructions, including
MCPRD’s rules and regulations (see Exhibit 11 - Park Rules), in effect now or as may be amended
or added, which apply to the development, management, operation and maintenance of the Complex,
as more fully described in Exhibits 1 through 11, attached hereto and made a part hereof, and to
keep fully informed of, and in compliance with, any changes or revisions thereto. Upon the securing
of appropriate permits and licenses to sell liquor, the Concessionaire shall provide, at its sole cost
and expense, all insurance required for liquor sales. In addition to compliance with legal
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requirements, the Concessionaire shall exercise prudent, responsible, and experienced judgment in
the serving of liquor for consumption in designated areas at the Complex.
J.
This Agreement shall be deemed to be made under, and shall be construed in accordance with and
shall be governed, interpreted and regulated by, the laws of the State of Arizona, and arbitration
proceedings, if applicable, or suit to enforce any provision of this Agreement or to obtain any remedy
with respect hereto may be brought in the Superior Court of the State of Arizona, Maricopa County,
and for this purpose, each Party hereby expressly and irrevocably consents to the jurisdiction of said
Court.
K. If suit or action is commenced to enforce compliance with any term, covenant or condition of this
Agreement, including any action undertaken in the context of bankruptcy proceedings, the Party not
prevailing shall pay to the prevailing party a sum which the trial judge determines is reasonable as
attorney fees to be allowed in the suit or action and court costs. If an appeal is taken from any
judgment or decree in the suit or action, the Party not prevailing on the appeal shall pay the
prevailing Party such further sum as the appellate court shall adjudge reasonable as attorney fees
on appeal and court costs.
L. The occurrence of any of the following events shall excuse performance of such obligations of a
Party as are rendered impossible or reasonably impracticable to perform while such continues:
strikes; lockouts; acts of God; governmental restrictions; enemy or hostile governmental action; fire
or other casualties; and other causes beyond the reasonable control of the Party obligated to perform
(each an event of “Force Majeure”).
M. Concessionaire covenants and warrants that the person executing this Agreement on behalf of the
Concessionaire is duly authorized to sign this Agreement and agrees to provide proof of such
authorization, for example, bylaws or a resolution, prior to the execution of this Agreement.
N. This Agreement does not create a leasehold estate, and District shall at all times remain the title
holder of the real property.
O. The MCPRD Director or his/her delegee shall administer this Agreement.This Agreement may be
executed in two or more counterparts, each of which shall be deemed an original but all of which
together shall constitute the same instrument. Faxed, electronically transmitted, and copied
signatures are acceptable as original signatures.
P. Time is of the essence of this Agreement. If the date for performance of any obligation hereunder
or the last day of any period provided herein shall fall on a Saturday, Sunday or legal holiday, then
said date for performance or period shall expire on the first day thereafter which is not a Saturday,
Sunday or legal holiday.
Q. This Agreement, together with any amendments and exhibits attached hereto, constitutes the entire
Agreement between the Parties and sets forth all of the covenants, promises, agreements, conditions
or understandings, either oral or written, between the Concessionaire and the County, and those
agreements that are executed contemporaneously herewith. This Agreement shall be construed as
a whole and in accordance with its fair meaning and without regard to any presumption or other rule
requiring construction against the party drafting this Agreement. This Agreement cannot be
modified or changed except by a written instrument executed by the Concessionaire and the County.
The Concessionaire and the County have reviewed this Agreement and have had the opportunity to
have it reviewed by legal counsel.
IN WITNESS HEREOF, the Parties have executed this Agreement on the date indicated.
PHOENIX KART RACING ASSOCIATION, INC.
Signature
Date
By:
Printed Name, Titla
Phoenix Kart Racing Association
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RECOMMENDED BY:
RJ Cardin
Date
Director, Maricopa County Parks & Recreation Dept.
MARICOPA COUNTY
____________________________________________
Chairman
Date
Board of Supervisors
ATTEST
Clerk of the Board
Date
Approved as to Form:
__________________________________
Attorney for Maricopa County
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Exhibit 1 – Complex Conceptual Site Location at Adobe Dam Regional Park
(Not to Scale)
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Exhibit 1 (continued)
Legal Description
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Exhibit 1 (continued)
Complex Conceptual Site Plan
Exhibit 1 (continued)
Complex Conceptual Site Plan
(Not to Scale)
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Exhibit 2 - Complex Activities and Parameters
Exhibit 2 - Complex Activities and Parameters, as stated herein, sets forth the allowable uses of the Complex.
This Exhibit will be reviewed annually, no later than December 31 of each year, as part of the AMP pursuant to
the terms of the Agreement.
The Concessionaire is authorized to organize, administer, and supervise kart racing competitions and other
recreational activities which include, but are not limited to, organization and facilitation of races, practices, and
tournaments, as well as provide instructional programs and clinics as provided herein for Concessionaire’s
recreation programs at the Complex.
1.
Complex Use. Concessionaire shall have exclusive right to schedule use of the Complex and for
conducting Complex Special Events (see Section 4 below).
2.
Complex Residency. The establishment of a residence, either temporary or permanent, shall not be
permitted on the Complex or within the Park.
3.
Complex Activities.
A. The Complex shall be open to the public. The Concessionaire is anticipated to provide or construct
the following additional structures, support facilities, and infrastructure for recreational activities
associated with the improvements as stated herein:
1) Additional bleachers
2) Upgraded lighting
3) Solar
4) Additional storage units
5) Additional control towers
B. The Concessionaire is anticipated to provide the following recreational racing activities at the
Complex:
1) Remote Control Car Racing
2) Arrive and Drive Motorsports Kart Rentals
3) Closed Low Obstacle Course Drone Racing Course
4) Competitive Bicycle Racing
5) Off-Road Racing Track (off road karts and UTV’s)
6) Speedway Bikes
7) Quarter Midget Karts
8) Other types of activities approved in advance by MCPRD
4.
Complex Special Events. Special Events are defined as events and activities outside of regular-seasonal
practices and races, such as overnight use of lands for trailers, tents, camping. Special Events require
submission of a Special Use Permit (SUP).
A. Special Use Permits (SUPs). The Concessionaire shall, through coordination with the Contract
Administrator and/or the Park Supervisor, coordinate the planning of SUPs for approval by MCPRD
and District.
1) For planning purposes, it is preferred that the Concessionaire submit annually to MCPRD (by
November 1) the tentative dates of all Special Events anticipated to occur in the upcoming
calendar year. MCPRD may combine annual activities into an annual SUP for approval by
MCPRD and District.
2) Special Event not among the annual planned activities SUP must be submitted to the Contract
Administrator sixty (60) calendar days prior to the event date.
3) SUP applications shall contain a full written description, a timeline of the event, and a map
showing the location of the event.
4) SUPs may require an addendum to the Emergency Evacuation Plan (see Exhibit 9 – Safety).
5) Special Event overnight use of any temporary structures (e.g., tents, trailers), or vehicles of any
type (including recreational vehicles) located below the 100-year standard project flood pool
elevation is not permitted on the Complex or within the Park without prior authorization. Such
authorization may be obtained through the submission of a SUP with a map illustrating the
location of the overnight use.
a) The Concessionaire shall assist in arranging security for vendors and their vehicles that
remain on the Complex overnight. The County assumes no liability for any vendor
vehicles, equipment or merchandise located on the Complex.
b) The Park volunteers or staff shall not be assigned the additional responsibility for the
security of vendor vehicles, equipment, or merchandise.
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c) The Concessionaire may charge a fee for overnight recreational vehicle parking; all fees
charged will be reported on the Monthly Income Statement as “other revenue” (See Exhibit
8 - Accounting and Fees).
d) All overnight recreational vehicle parking shall be self-contained.
6) Additional recreational vehicle parking beyond the Complex boundaries may be coordinated
with the Contract Administrator and/or Park Supervisor, of which the occupants will pay the
County the published primitive overnight parking/camping fee.
7) SUP’s may be modified within the reasonable notification to the Contract Administrator (e.g.,
weather caused delay would require immediate notification; event cancelation would require a
minimum of thirty (30) calendar day notification).
8) There is always a possibility that any SUP may be canceled by County and/or District due to a
public safety concern.
B. Special Event Vendors. The Concessionaire may invite outside vendors to support Special Events
through the sale of vendor products.
1) The Concessionaire assumes all liability for outside vendors and is responsible for obtaining all
required licenses, permits, liability, and shall pay all appropriate taxes as well as to conduct all
appropriate income reporting.
2) The County and the District shall be listed as additionally insured on each Certificate of
Insurance required per Agreement Section 10 Indemnification and Insurance.
3) The County is not liable for the failure of vendors to comply with these obligations; however,
it is the responsibility of Concessionaire to ensure the outside vendors are aware of these
requirements and the County reserves the right to remove from the Complex any vendor who
is not in compliance with these requirements or vendors with products or merchandise deemed
inappropriate.
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Exhibit 3 – Development of the Complex
Exhibit 3 – Development of the Complex, as stated herein, sets forth the guidelines for the planning, design,
permitting, and construction of the Complex. This Exhibit will be reviewed annually, no later than December 31
of each year, as part of the AMP pursuant to the terms of the Agreement.
1.
Planning.
A. The Complex shall be developed with the improvements and activities set forth in Exhibit 2 -
Complex Activities and Parameters.
B. The Concessionaire shall provide conceptual site plans to identify specific Complex Elements, as
defined below, and infrastructure requirements for each proposed phase of development as set forth
in the Phasing Schedule in Section 4(F) of this Agreement to MCPRD and to the District (through
District’s portal). As defined, Complex Elements are those proposed elements identified in the ITN
Response that are supported by the County at the time of the execution of this Agreement, and any
other facilities that may be agreed upon from time-to-time between Concessionaire, County, and
District.
1) Conceptual site plans should be sufficiently detailed and include information on land use and
construction (i.e., locations of public/non-public access, tracks, buildings, fences.); and
2) If applicable, identify and provide to MCPRD and District studies that outline the infrastructure
needs for the Complex. The studies shall include an analysis of infrastructure capacity and
identification of all permitting and agreements needed to provide the required infrastructure.
C. Within sixty (60) days prior to the onset of each Contract Year set forth in the Phasing Schedule in
Section 4(F) of this Agreement, the Concessionaire shall submit a detailed timeline of the
Concessionaire’s proposed milestones for the upcoming Contract Year for MCPRD and District
review and approval. In addition to the timeline submittal:
1) Concessionaire shall meet with representatives of MCPRD and the District, upon notice from
MCPRD and/or District, but in no event on less than a semi-annual basis, to discuss the
Concessionaire’s progress in achieving the Contract Year goals. Nothing contained herein shall
be construed as prohibiting any meeting from occurring via telephone or another electronic
forum, upon mutual agreement of the Parties, unless the circumstances necessitate in person
meeting(s).
2) Not fewer than five (5) business days prior to each such meeting, Concessionaire shall provide
written reports to MCPRD and District that provide a progress update on each of
Concessionaire’s responsibilities and identify compliance with the approved timeline.
D. In the event Concessionaire does not make satisfactory progress, in the County’s sole discretion, to
meet the mutually agreed-upon annual milestones set forth for each Contract Year, it shall be
considered a default of this Agreement.
2.
Development.
A. The Concessionaire shall, at its sole cost and expense, shall pay all costs associated with the
Complex design, plan preparation, development, and obtaining all permits from applicable
jurisdictions and all associated costs and fees thereof.
B. The Concessionaire shall design and develop the Complex, at its sole cost and expense, with the
improvements set forth in Exhibit 2 - Complex Activities and Parameters.
C. The Concessionaire shall work to procure commodities, services, and facilities that protect and
enhance the overall environment in a diligent, professional, and credible manner within reasonable
fiscal constraints. Practices should include sustainable design features, water conservation
practices, and recycling programs where applicable.
D. Development or improvements may require the completion of the National Environmental Policy
Act (“NEPA”) reviews, cultural resource compliance, or other permits before any improvements or
construction activities commence. The Concessionaire must plan its activities and provide MCPRD,
District, and relevant permitting agencies sufficient time to review all drawings and proposals,
prepare NEPA documentation, as well as prepare and review other documentation as required. Refer
to Exhibit 4 - Resource Management for additional compliance parameters.
E. The Concessionaire understands that the Complex is located within an impoundment area and is
subject to flooding. All proposed development and improvements must adhere to the Adobe Dam
Impoundment Area Guidelines (“Guidelines”) as indicated in Exhibit 3 Development of the
Complex - Appendix One Flood Impoundment Area Guideline and Restrictions.
F. Concessionaire shall participate, as deemed appropriate by MCPRD, in any effort to amend the Park
Master Plan, including, without limitation, participation in public outreach, or public meetings.
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G. The Concessionaire agrees to schedule and conducts any improvements or construction activity on
the Complex in a manner that minimizes hazards and inconvenience to the public.
H. Proposed construction materials stockpiling and/or equipment staging areas are subject to the prior
approval of the MCPRD and District. A plan that, at a minimum, specifies the quantity, type, and
location of the materials/equipment to be stockpiled/stored/staged, the proposed safety and security
for the staging area(s), and a stormwater protection plan, shall be submitted for approval to MCPRD
and District a minimum of sixty (60) calendar days in advance of the proposed activity. Stockpiling
of material on the streets or in the public right-of-way is not allowed at any time.
3.
Plan Approval. All development and improvement plans for new construction or improvements shall be
submitted, in writing, to MCPRD and to the District (through the District’s portal) for its prior review
and written approval at the conceptual level, thirty percent (30%), sixty percent (60%) and ninety percent
(90%) stages and final stamped sets as required by the respective permitting agency. Final stamped sets
will include the budget, construction schedule, and anticipated dollar expenditures. Any deviation from
the final plans must be approved in writing by MCPRD and/or District. The Concessionaire may
commence construction upon MCPRD’s written notice to proceed after MCPRD and District have
received approved plans and specifications, and the Concessionaire has secured the necessary permits,
licenses, and all other approvals required for the construction of the Complex.
4.
Infrastructure. Required infrastructure improvements, which include, but are not limited to, the
following, shall be developed as necessary to serve the development and/or accommodate traffic to and
from the Complex:
A. Roads.
The County-maintained existing road(s) within the Park are shown in black on Exhibit
1 – Complex Conceptual Site Plan attached hereto and made a part hereof.
B. Water.
1) County and District expressly disclaim all warranties, whether expressed or implied, and make
no representations concerning the availability, quality, or sufficiency of any type of water for
present or future use.
2) Potable water is currently provided by the City of Phoenix.
3) The Concessionaire, at its sole cost and expense, shall pay for all costs associated with potable
water and the delivery of potable water to and within the Complex.
C. Waste Water System.
1) Wastewater will need to be disposed of through a septic system or use of chemical toilets
depending upon the planning and permitting restrictions.
2) Concessionaire shall be responsible for all costs for wastewater disposal, to include all costs
associated with the design, permitting, construction, purchase, and maintenance of the
system(s) to be used in support of disposal of wastewater for Concessionaire’s Complex, unless
otherwise stated in this Agreement. Regulated substances may not be disposed of in sewer or
septic systems (See Exhibit 4 - Resource Management).
D. Electrical.
1) Concessionaire shall be responsible for providing, maintaining, and paying the fees for the
delivery and use of electricity to and within the Complex to include all meters at no cost to
County unless otherwise stated in this Agreement.
2) Transferring the account or establishing a new account for the electrical service at the existing
facility is also the responsibility of the Concessionaire.
E. Easements. The County and District reserve the right to establish or modify access or utility
easements through the Complex:
1) If the proposed new or modified easement is solely for the benefit of County and/or District,
then the costs of design, permitting, construction, and maintenance of the easement and
improvements located therein will be the responsibility of County and/or District. Reasonable
notice will be provided to the Concessionaire of the location of the proposed easement(s) and
improvements. Construction will be coordinated with Concessionaire.
2) If Concessionaire requests relocation of any existing utilities or new utility installation and/or
new or modified access, Concessionaire shall submit the proposed location(s) of the
easement(s) and improvement(s) to MCPRD and District for MCPRD’s and District’s review
and approval prior to submission to the appropriate planning and permitting authorities. The
Concessionaire shall be responsible for all costs associated with the aforementioned
relocation/installation of utilities and/or access to include all fees, permits, and construction.
4.
Impediments to Development. The Parties recognize that the Concessionaire has not had the benefit of
a contingency period under this Agreement which would enable it to confirm: (i) the ability to obtain all
permits required to complete the improvements contemplated by this Agreement and this Exhibit 3 –
Development of the Complex; (ii) that there are no obstacles to development such as unfavorable soil
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conditions, soil contamination, access limitations, and similar matters; and (iii) that there are no other
unanticipated impediments to development such as neighborhood opposition or political opposition to
any aspect of the proposed projects to be undertaken in the Complex, therefore, the Parties agree that the
development of the Complex may be limited and that the elements and features of the Complex are
subject to reasonable change by the Concessionaire to accommodate directives from regulatory agencies,
changes in the marketplace, changes in federal or state statutes or policy, changes dictated by planning
and permitting guidelines or restrictions, changes dictated by opposition to any proposed development,
the inability to obtain utility services or materials to operate any proposed element of the Complex; and
the need to remodel and renovate features. If any of the aforementioned items impede the proposed
development set forth in the ITN Response and the Agreement, Concessionaire shall promptly notify
MCPRD of the impediment and coordinate in good faith with MCPRD to address a possible solution
which may include an amendment to this Agreement. The County will, in its sole discretion, make the
decision(s) pertaining to whether development may deviate from the ITN Response and Agreement, and
such decision(s) cannot be appealed.
5.
As-Built Plans. As defined, As-Built Plans shall be a final drawing produced at the completion of the
Complex.
A. As-Built Plans will be submitted to the permitting agencies upon completion of construction of the
Complex or any future improvements.
B. One (1) electronic copy of As-Built Plans and specifications shall be furnished to MCPRD and the
District within sixty (60) calendar days of completion of construction of the Complex or future
improvements. The Concessionaire will be responsible for the costs incurred for additional plans
as may be required.
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Exhibit 3 Development of the Complex - Appendix One
Flood Impoundment Area Guideline and Restrictions
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Exhibit 4 - Resource Management
Exhibit 4 - Resource Management, as stated herein, provides the resource management and environmental
compliance parameters. This Exhibit will be reviewed annually, no later than December 31 of each year, as part
of the AMP pursuant to the terms of the Agreement.
The Concessionaire is responsible for ensuring that adequate resource management and environmental practices
are adhered to as set forth herein. The Concessionaire agrees to comply with all environmental laws and
regulations and to take such other actions as may be reasonably required to protect against environmental
liabilities.
1.
Environmental Compliance.
A. Environmental Review. The Concessionaire, at the Concessionaire’s sole expense, shall be
responsible for the completion of all applicable environmental studies or assessments, and obtaining
all applicable permits, licenses as well as conducting any type of environmental mitigation that may
be required within the Complex. For reference, the Environmental Assessments for the Park are
listed on Exhibit 4 Resource Management – Appendix One.
B. Air Quality. The Concessionaire, at the Concessionaire’s sole expense, shall be responsible for
obtaining all air quality permits, and/or licenses to ensure compliance with the Maricopa County air
and dust control, water and waste control regulations, as well as any other applicable federal, state
and local statutes, regulations and ordinances as they pertain to environmental protection.
C. Hazardous and Regulated Materials.
1) For the purposes of this Agreement, the term “regulated substances” shall include substances
defined as “regulated substances,” “hazardous waste,” “hazardous substances,” “hazardous
materials,” “toxic substances” or “pesticides” in the Resource Conservation and Recovery Act,
as amended by the Hazardous and Solid Waste Amendments of 1984, the Comprehensive
Environmental Response, Compensation, and Liability Act, as amended in 1986 to include
Superfund Amendments and Reauthorization Act, the Hazardous Materials Transportation Act,
the Toxic Substance Control Act, the Federal Insecticide, Fungicide, and Rodenticide Act, the
relevant local and state environmental laws, and the regulations, rules, and ordinances adopted
and publications promulgated pursuant to the local, state and federal laws.
2) Management and proper disposal of all hazardous material is the responsibility of the
Concessionaire. Any such hazardous substances must be disposed of pursuant to and in
compliance with all required laws and regulations concerning the use and disposal of such
regulated materials. The Concessionaire must keep appropriate and required documentation
relating to the management and disposal of all regulated materials.
3) If the Concessionaire’s activities result in a release of any regulated substances or any adverse
environmental impacts, the Concessionaire shall be solely responsible for any and all resulting
site assessment(s), studies, remediation and clean-up costs required to restore the property to as
close to its original condition as possible.
D) Regulated Use.
1) The Concessionaire will provide to County upon the start of any construction activities, and
within ninety (90) calendar days of the Opening Date, a complete list identifying all regulated
substances including, but not limited to, hazardous material or petroleum products to be stored
at the Complex. Changes from the initial list shall be provided by the Concessionaire to the
County, in writing, as they occur. The Concessionaire shall keep safety data sheets on site for
all regulated substances as required by law.
2) The Concessionaire shall prepare and implement any necessary remediation action plan in
accordance with all applicable federal, state, county, and city statutes, laws, ordinances, rules,
and regulations in the event Concessionaire causes any contamination of the Complex or the
Park.
3) The Concessionaire shall provide, within twenty-four (24) hours of its knowledge, verbal
notification to the County, in accordance with Section 15 of this Agreement, information on
any event or occurrence at the Complex which may or does result in pollution or contamination
affecting lands, water or facilities owned or managed by the County or adjacent properties.
2.
Pest / Weed Control and Animal Salvage.
A. The Concessionaire, at the Concessionaire’s sole expense, shall be responsible for managing vermin
and other pests, including weeds, on all lands and facilities within the Complex. In the event of
visible evidence of pest(s) infestation, Concessionaire will restore the area to as close to its original
condition as possible. Thirty (30) calendar days after the Effective Date of this Agreement, the
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Concessionaire shall develop and submit for MCPRD and District approval, an integrated Pest
Management Plan, defined as a plan that details a safe and environmentally sensitive control or
eradication of potential pests at the Complex. At a minimum, the Pest Management Plan needs to
include the product name, Material Safety Data Sheet, (MSDS) and applied solution ratio. The Pest
Management Plan will be evaluated annually by MCPRD.
B. The Concessionaire, at the Concessionaire’s sole expense, shall be responsible for complying with
all training (federal, state, county, and local), operational, and licensing requirements pertinent to
and required for the application of pesticides in Arizona. The applicator shall hold all necessary
licenses and registrations required for the lawful application of pesticides, herbicide, fungicide,
fertilizer, and similar chemicals/substances. The Concessionaire shall keep safety data sheets on
site for those materials and products set forth above as required by law.
C. The Concessionaire, at the Concessionaire’s sole expense, shall be responsible for securing all
permits and plans for the protection and/or relocation of endangered, threatened, or protected species
of wildlife in any area(s) of land disturbance (including potholing associated with construction or
operation of the Complex) per State/Federal guidelines. Two resources that may assist
Concessionaire with their research to determine required permits are i) Environmental Review from
Arizona Game and Fish https://azhgis2.esri.com/ and ii) the US Fish & Wildlife Services
http://ecos.sws.gov/ipac/.
3.
Historic and Archeological Resources. The County has no knowledge of the presence of any artifacts,
antiquities, human remains, or other items of archeological, scientific, or cultural interest, which would
impede the development of the Complex. However, the Concessionaire shall take all reasonable and
necessary precautions to protect and preserve any and all antiquities or other objects of archeological,
paleontological, cultural, historical, or scientific interest that it finds on County lands within the
Complex. These objects include, but are not limited to, historic or prehistoric ruins, human remains,
funerary objects, and other artifacts. Should such sites or objects, or evidence of sites or objects, be
discovered, the Concessionaire shall:
A. Immediately suspend all work involving the area in question, make a reasonable effort to protect
and stabilize such discovery and provide a verbal notification to MCPRD’s Contract Administrator,
in accordance with Section 15 of this Agreement, of the existence of such discovery.
B. Forward a written report of their findings to MCPRD’s Contract Administrator in accordance with
Section 15 of this Agreement, and not resume work until written authorized to proceed is issued by
the County.
C. At its sole cost and expense, have the area inspected to determine its historical significance and
required next action (e.g., salvage, test excavations, and resumption of construction). If the property
has been determined to be a site of archeological significance, the removal of the artifacts will be
the responsibility of the County. All objects salvaged from public lands are the property of the
United States Government and will be turned over to County for disposition.
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Exhibit 4 Resource Management Appendix One
Environment Assessments for the Adobe Mountain Dam Recreation Area
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Phoenix Kart Racing Association
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Exhibit 5 – Preventative Maintenance and Capital Improvements
Exhibit 5 – Preventative Maintenance and Capital Improvements, as stated herein, provides the preventative
maintenance and capital improvement parameters for the Complex. This Exhibit will be reviewed annually, no
later than December 31 of each year, as part of the AMP pursuant to the terms of the Agreement.
The Concessionaire shall perform Complex preventative maintenance and capital improvements as stated in the
Agreement and as identified in Exhibit - 5 Preventative Maintenance and Capital Improvements Appendix
One, attached hereto and made a part hereof, diligently and professionally satisfactory to the County in
compliance with all applicable statutes, laws, ordinances, rules, and regulations.
1.
Preventative Maintenance and Repairs. Concessionaire shall be responsible for the preventative
maintenance and repairs of all infrastructures, roadways, structures, wet utilities, dry utilities, equipment,
and facilities/amenities within, or associated with/within the Complex. By definition, “Preventative
Maintenance” means those activities that are completed to maintain an area, facility or piece of
equipment in a safe, properly functioning condition that complies with commercial operating standards
for that specific amenity and/or equipment as applicable. Preventative Maintenance, as used in this
Section, does not refer to those activities defined below in Section 2.
A. The Concessionaire is responsible for all Preventative Maintenance costs and can expend from the
Maintenance Account designated for maintenance and repair of existing facilities, structures, and
other improvements as defined in Exhibit 8 - Accounting and Fees.
B. The Concessionaire, within thirty (30) calendar days of the Effective Date of the Agreement, shall
develop and submit to MCPRD a Preventative Maintenance Plan (“PMP”) incorporating the
Concessionaire’s PMP responsibilities, as referenced in Section 1 above, pertaining to the Complex.
2.
Capital Improvements Projects. Capital Improvement Projects (“CIP”) are defined as new construction
or major repair and/or replacement of building components, which substantially extend the useful life of
the existing facilities. Concessionaire shall be responsible for all Capital Improvement costs and shall
maintain the Complex in a commercially reasonable manner to prevent disrepair within, or associated
with, the Complex.
A. Beginning with Contract Year two (2) and within ninety (90) calendar days after the end of each
Contract Year thereafter, the Concessionaire shall provide to the County, for its review, an Annual
Capital Improvement Project Plan (“ACIPP”) for the ensuing year. The ACIPP shall include a
budget that details any planned expenditures from the CIP Fund, as defined in Exhibit 8 –
Accounting and Fees.
B. In the event the County and the Concessionaire disagree on the proposed CIP expenditures for any
Contract Year, then the determination of Concessionaire shall control so long as it is consistent with
the provisions of this Section 2.
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Exhibit 6 - Marketing and Media
Exhibit 6 - Marketing and Media, as stated herein, provides the marketing and media parameters for the
Complex. This Exhibit will be reviewed annually, no later than December 31 of each year, as part of the AMP
pursuant to the terms of the Agreement.
The Concessionaire is responsible for ensuring that all Complex media, advertising materials, and marketing is
family oriented and is reviewed and/or approved by MCPRD, as noted herein.
1.
Press Releases and Media Distribution. The Concessionaire will provide the Contract Administrator,
via email, a courtesy copy of all media releases.
2.
Marketing & Advertising.
A. Advertisements, signs, circulars, brochures, letterheads, and other media or materials shall not
misrepresent in any way the accommodations or services provided.
B. All printed advertising shall include a statement to the effect that the Complex is being operated as
“A Concessionaire of Maricopa County at Adobe Dam Regional Park.”
C. The Concessionaire is authorized to accept family-oriented advertising from other Park
concessionaires and vendors not located (Outside Vendors) at the Park that desire to advertise their
respective business to visitors of the Complex.
D. The Concessionaire is authorized to assess a fee for advertising requested by Outside Vendors (See
Exhibit 8 - Accounting and Fees).
3.
Signage. Concessionaire, at its sole cost and expense, may provide signs or other advertising to be posted
on County land outside the Complex, subject to County and District approval, and any other applicable
administrative agency approvals and permits as to location, design, size, color, and content, prior to
construction or use thereof.
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Exhibit 7 - Administrative Functions
Exhibit 7 - Administrative Functions, as stated herein, provides the procedures for the daily administration of
the Complex. This Exhibit will be reviewed annually, no later than December 31 of each year, as part of the AMP
pursuant to the terms of the Agreement.
The Concessionaire shall provide administrative functions as stated herein and in the Agreement in a diligent,
professional, and credible manner satisfactory to the County in compliance with all applicable statutes, laws,
ordinances, rules, and regulations.
1.
The Concessionaire shall pay, at its sole cost and expense, for all costs associated with employment and
management of all of Concessionaire’s personnel, including volunteers, for the operation of the
Complex. The Concessionaire is fully responsible for the proper supervision of all its employees,
volunteers, contractors, subcontractors, vendors, and all patrons using the Complex.
2.
Schedules.
A. Operating Schedule. Within sixty (60) calendar days of the Effective Date and by January 2nd of
each calendar year thereafter, the Concessionaire shall submit to MCPRD for review and comment,
and as part of the AMP, an annual operating schedule showing the intended hours and days of
operation. The Concessionaire may modify the annual operating schedule, based on their prudent
business judgment; however, Concessionaire shall provide MCPRD notice, in writing, of such
changes thirty (30) calendar days prior to becoming effective or as soon as reasonably practicable.
Hours of operation may be adjusted by Concessionaire or County; however, no event will begin
before 6:00 a.m. or proceed past posted Park closing hours without written authorization from
MCPRD.
B. Rate Schedules. Within sixty (60) calendar days of the Opening Date and by January 2nd of each
calendar year thereafter, the Concessionaire will submit to MCPRD, for review and comment and
as part of the AMP, a general price list for goods and services that will be charged to the public.
Concessionaire may modify the rates and prices based on their prudent business judgment.
However, the Concessionaire shall provide MCPRD notice, in writing, of such change within thirty
(30) calendar days prior to becoming effective or as soon as reasonably practicable. The
Concessionaire will post, and at all times keep on public display, the prices, rates, and charges for
all goods and services, as well as the acceptable forms of payment.
3.
Complex Annual Evaluation. An annual evaluation (see Exhibit 7 – Administrative Functions
Appendix One Complex Annual Visual Evaluation Template, attached hereto and made a part
hereof) by MCPRD’s Contract Administrator in cooperation with appropriate County and District staff,
will be made of the quality of operation and maintenance of the Concessionaire’s operation within the
Complex and compliance with all terms of this Agreement to determine if there are areas of deficiency
to be addressed and corrected.
A. As an integral part of the evaluation process, and as a demonstration of the Concessionaire’s
commitment to public safety and its long term investment and interests, the Concessionaire shall
obtain annual inspections, done by a third-party inspector, of the Complex (e.g. building structures,
roofing, foundations, electrical and fire systems) and shall provide MCPRD a copy of said
inspections, at no cost to the County.
B. The Concessionaire shall fully cooperate with County in this evaluation process, and any deficiency
determination shall be at the sole discretion of the County. County will afford Concessionaire thirty
(30) calendar days to respond to such evaluation and provide a timeline, not to exceed ninety (90)
calendar days from the date of the evaluation, or more upon mutual agreement of the Parties to
correct any deficiencies that are required to be made to comply with this Agreement. Failure to
correct deficiencies identified by County shall be considered an event of default that is curable in
accordance with the provisions set forth in Section 7(A)(2) of this Agreement.
C. The County shall administer this Agreement diligently and professionally. The Concessionaire may
also evaluate County, on an annual basis, as to compliance with all terms of this Agreement to
determine if there are areas of deficiency to be addressed and corrected. The County shall fully
cooperate with the Concessionaire in this evaluation process.
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Exhibit 7 - Administrative Functions
Appendix One – Complex Annual Visual Evaluation
Please refer to Complex Annual Third Party Inspection for Specific Conditions of the Complex
Template
Name of Complex:
PKRA
Location:
Adobe Dam Regional Park
Date of Evaluation:
Name of Concessionaire Representative: _________________________
MCPRD Representative Date
County Representative
Date
PKRA Representative Date
District Representative
Date
Description
Acceptable
Needs
Attention Comments
A.
Buildings and Public Area Conditions:
1
Roadway / Entrance
2
Main buildings and concessions
3
Restrooms / Portable Restrooms
4
Bleachers
5
Public parking areas
6
Weed /Rodent Control
7
Litter and trash control
8
Signage
9
Other:
B.
Complex Specific:
1
Appearance/maintenance of tracks
2
Complex lighting
3
Fencing/barriers
4
Bleachers
5
Fire extinguishers readily available
6
Floatable items contained
7
Other:
C. Maintenance and Repair Facility Observations
1
Dust control measures evident and effective:
2
Debris stockpiles / containment thereof
3
Equipment Buildings / Storage Areas conditions:
4
Storm prevention
5
SDS “Right-To-Know” Station in Place; SDS sheets posted
6
Manifests kept and logged on all contained/disposed of
petroleum-based products, tires, or batteries
7
Regulated substances containment / Hazmat placards / Spill
Prevention Plan
8
Other:
D.
Customer Service
1
Examples of customer comments about service, pricing,
policies, and quality
2
Example of a complaint that was received and how it was
resolved
F.
Compliance:
1
Is the Concessionaire compliant with A.R.S. §41-4401
2
Annual Operating Permits and Licenses (food, liquor, etc)
copies provided
3
Annual third-party inspections (building, roofing, foundations,
electrical & fire) copies provided
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Exhibit 8 – Accounting and Fees
Exhibit 8 - Accounting and Fees, as stated herein, provides administrative procedures for payments of annual
and minimum fees, payment of utilities, as well as provides procedures for the establishment of a Maintenance
Account Fund (defined below in Section 4) and a Capital Improvement Fund (defined below in Section 5) for
the Complex. This Exhibit will be reviewed annually, no later than December 31 of each year, as part of the AMP
pursuant to the terms of the Agreement.
The Concessionaire shall maintain an accounting system and pay all fees as stated herein and in the Agreement
in a timely manner and in compliance with all applicable statutes, laws, ordinances, rules, and regulations.
1.
Complex Use Fees. By definition, Complex Use Fees are fees paid by the Concessionaire to County for
the use of the Complex. The Concessionaire is responsible for the management and collection of all
Complex Use Fees.
2.
GAAP. The Concessionaire will maintain an accounting system which conforms to the Generally
Accepted Accounting Principles (“GAAP”) and which accurately reflects an accounting of the
Concessionaire’s entire operation of the Complex. These financial records will be retained for a seven
for a (7) year period from each current Contract Year. These financial records will also be made available
for an annual inspection or audit by County, federal, or state government, their agents, or employees.
A. Annual Financial Report. Within ninety (90) calendar days of the end of each calendar year, the
Concessionaire, at its own expense, will prepare and submit to County an Annual Financial Report
(“AFR”) stating the income and expenses, including a balance sheet, of the entire operation within
the Complex for the calendar year just completed. The AFR shall be audited by a Certified Public
Accountant prior to submittal. The AFR shall include a statement that the amounts shown in the
financial report are consistent with those included by the Concessionaire’s federal and state income
tax returns relating to the Concessionaire’s operation of the Complex. If these are not the same, a
statement explaining any differences shall be included. If the Concessionaire’s books, records, and
other documents relevant to this Agreement are not sufficient to support and document fiscal
activity, the Concessionaire will, within twenty (20) calendar days of the auditor’s report, make
payment to the County for any amounts not adequately supported and documented.
B. Audit. The County has the right to audit payment records (payment records are defined as monthly
revenue reports, AFR, and any other payments made to the County during the respective Contract
Year) for timeliness and accuracy. Any fees determined to be due County will be invoiced to the
Concessionaire with payment due within twenty (20) calendar days of invoice. Overpayment to
County will be credited to the Concessionaire during the next billing period or fee payment period
with an invoice acknowledging overpayment.
3.
Fees and Statements.
A. Minimum Fee. During the Term and Renewal Term of this Agreement, the Concessionaire will pay
the County a Minimum Fee due to the 15th of the month following the Effective Date representing
Contract Year one (1) and on January 1st of each subsequent Contract Year, in accordance with the
Fee Payment Schedule (see Agreement Section 5(C)). In the alternative, for the subsequent
Contract Years, the Minimum Fee may be paid in twelve (12) monthly installments with a due date
on the 15th of each current month (e.g., June Minimum Fee due date is June 15). The County shall
invoice for the Minimum Fee.
B. Monthly Income and Attendance Statement. A sample monthly Income and Attendance statement
are attached as Exhibit 8 – Accounting and Fees Appendix One Monthly Income and
Attendance Statement (Income and Attendance Statement). The Concessionaire shall prepare the
Income and Attendance Statement and email it to MCPRD within fifteen (15) calendar days from
month end as directed in Section 3(E) below, e.g., June 30th month-end; the due date is July 15th.
1) Gross Revenue. Includes, but is not limited to, the following:
a.
Complex revenues, admission fees, race entry fees, vendor fees, and Special Events (as
defined in Exhibit 2 – Complex Activities and Parameters).
b. Rental fees from any other type of rental amenity (i.e., karts, safety equipment, storage
containers).
c.
Membership fees and/or dues.
d. Fees collected for services not listed above, e.g., internet/WiFi services.
e.
Sub-tenant, independent contractors, and sub-concessions gross revenue sales shall be
included as part of Concessionaire’s gross revenue.
f.
Merchandise, equipment, food, and beverage concession sales.
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g. Fees charged for programs, lessons and instructions provided by Concessionaire’s staff or
monthly fee charged to sublicensees, or instructors functioning as independent contractors
at the Complex.
h. Promotional or advertising income received by or paid to Concessionaire in exchange for
displays, promotions, advertising, or other business transacted at the Complex.
2) Adjusted Gross Revenue Authorized Deductions:
a.
The amount of any tax imposed upon the Concessionaire or upon the customer, regardless
of whether or not the amount of tax is stated to customers as a separate charge, or any state
or local sales, transaction privilege or use taxes required by law to be included in or added
to the purchase price and collected from the consumer or purchaser.
b. The cost of holding Special Events that are in addition to regular operating costs.
c.
Sales from MCPRD merchandise available on consignment through the Concessionaire.
d. Any part of the sales price of any goods previously sold and returned by the purchaser to
the Concessionaire, which is refunded by the Concessionaire by way of cash or credit
allowances.
e.
The value of any merchandise, supplies, or equipment exchanged or transferred from or to
other business locations of the Concessionaire.
f.
Receipts in the form of refunds from, or the value of, merchandise, supplies, or equipment
returned to shippers, suppliers, or manufacturers.
g. Receipts from the sale or the trade-in of any furniture, trade fixtures, or equipment used on
the Complex and owned by the Concessionaire.
h. The amount of any cash or quantity discounts received from sellers, suppliers, or
manufacturers.
i.
The amounts of any discounts given to the Concessionaire’s employees.
j.
The amount of Capital Improvement Project Fund set aside from the previous Contract
Year (see Section 5 below).
k. Credit card charges payable to credit card issuers.
C. Other Fees. Invoices generated by the County for utilities or other fees are due no later than twenty
(20) calendar days after the date of the invoice (“Due Date”).
D. All reports, fees, and payments due County will be sent to:
Reports:
Email: emily.miller@maricopa.gov
Fees/Payments, if by credit card:
Phone 602-506-9500
Reports/Fees/Payments, if mailed:
Maricopa County Parks and Recreation Department
c/o Finance Department
41835 N. Castle Hot Springs Road
Morristown, AZ 85342
E. Late Payment Fee. A late payment fee of ten percent (10%) for every thirty (30) days after the
invoice due date. Late fees will be due not later than twenty (20) days after the date of the invoice
from County.
4.
Maintenance Account. The Concessionaire agrees to set up a maintenance account (“Maintenance
Account”) with a minimum fund balance of five thousand dollars ($5,000.00), by the conclusion of the
first Contract Year of operation. The funds deposited into this account shall be used to maintain the
Complex in a commercially reasonable manner and keep the Complex in good repair in accordance with
the preventative maintenance plan (see Exhibit 5 –Preventative Maintenance and Capital
Improvements).
A. The Concessionaire will maintain control of the Maintenance Account; however, County retains the
option to audit the Maintenance Account deposits and expenditures. The County will review the
Maintenance Account annually, no later than December 31 of each year, as part of the AMP pursuant
to the terms of the Agreement.
B. The Concessionaire will continue to make deposits into the Maintenance Account annually for each
Contract Year after the conclusion of the first Contract Year of operation as appropriate to maintain
an annual minimum balance of five thousand dollars ($5,000.00) .
C. The funds in the Maintenance Account shall be transferred to the County in the event that the
Concessionaire defaults and/or terminates this Agreement early without a replacement operator.
5.
Capital Improvement Project Fund (CIPF). Concessionaire agrees to set up a CIPF for capital
improvements and/or major maintenance and repair of existing facilities, structures, and other
improvements to substantially extend the useful life of the Complex. (See Exhibit 5 - Preventative
Maintenance and Capital Improvements).
A. Beginning ninety (90) calendar days after conclusion of first Contract Year of operation, the
Concessionaire shall deposit annually two and one-half percent (2.5%) of the annual operating costs
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of the prior Contract Year into the CIPF for each upcoming calendar year for each track facility.
The CIPF shall not fall below five thousand dollars ($5,000.00) in any calendar year.
B. The Concessionaire may direct the investment of the CIPF until needed for CIPs.
C. The funds in the CIPF shall be transferred to the County in the event that the Concessionaire defaults
or upon the termination of this Agreement.
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Exhibit 8 – Accounting and Fees
Appendix One – Sample Monthly Income and Attendance Statement
Description
Amount
Description
Amount
Pit Admission Fees
Pit Admission
Participant Racing Fees
Participant Racing
Membership Fees/Dues
Members
Spectator Admission Fees
Spectactors
Sponsorship Fees
Volunteers
Rentals:
Karts
Total Attendance:
Gear/Equipment
Track
Pit
Storage
Special Events
Food and Beverage
Merchandise
Advertizing/Promotional
Contributions
Services (i.e., WiFi, lessons)
Sub-Concessions/Sub-Tenant
Other
Sub-Total Gross Revenue:
Description
Amount
Cost of holding Special Events
Trophies/Prize Money
Food and Beverage - Cost of Sale
Merchandise - Cost of Sale
Taxes
Refunds
CIP fund set aside from previous
year - allocated monthly
Other:
Sub-Total Authorized Deductions:
Total Adjusted Gross Revenue
INCOME AND ATTENDANCE STATEMENT
Phoenix Kart Racing Association
Gross Revenue
Attendance
Authorized Deductions
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Exhibit 9 - Safety
Exhibit 9 - Safety, as stated herein, provides the safety parameters for the Complex. This Exhibit will be
reviewed annually, no later than December 31 of each year, as part of the AMP pursuant to the terms of the
Agreement.
The Concessionaire is responsible for ensuring that adequate safety measures and personnel are on-site at all times
during Complex operating hours. All activities and events conducted by the Concessionaire will be conducted in
conformance with all relevant industry standards and in compliance with all applicable federal, state, and local
statutes, regulations, and ordinances relating to safety.
1.
Security. The Concessionaire, at its sole cost and expense, shall provide security measures to protect the
Complex, its employees and/or contractors, and the public.
2.
Safety Program.
A. The Concessionaire shall develop and implement a written safety program thirty (30) calendar days
prior to the scheduled Opening Date and provide a copy of the program to MCPRD. All activities
and events conducted by the Concessionaire shall be conducted in conformance with all relevant
industry standards for safety and in compliance with all applicable federal, state, local safety,
occupational health regulations, statutes, laws, and ordinances.
B. The safety program shall include a self-inspection of all equipment, facilities, and work processes
by qualified concession personnel to verify compliance with established federal, state, county, and
local safety and occupational health regulations. Changes or amendments to the safety program will
be submitted to MCPRD as they occur.
3.
Suspend Operations. The County will have the authority to immediately suspend any of the
Concessionaire’s operations if it is determined that there is an imminent risk or threat to the public,
employees, or Park staff. Such suspension shall remain in effect until the risk or threat has been resolved
to the reasonable satisfaction of the County. Such suspension will be without liability to County for any
Concessionaire losses, including, but not limited to, lost income, wages, or other compensation, which
may be claimed by the Concessionaire.
4.
Reporting.
A. The Concessionaire shall immediately report to the County any event which results in death, serious
injury, or medical transport. Reports shall be submitted to the Contractor Administrator, Park
Supervisor, and the Regional Superintendent as per the MCPRD organizational flow chart set forth
in Exhibit 10 MCPRD Organizational Chart.
B. The Concessionaire shall annually provide the Contract Administrator copies of all insurance claims
(to include but not limited to incident reports) within thirty (30) calendar days after the end of each
calendar year.
5.
Park Access and Closure.
A. The Concessionaire reserves the right to deny any person's use of portions of the Complex when it
reasonably believes that such use poses a direct threat to the health or safety of others or the
Complex.
B. The Concessionaire may restrict public access within the Complex during hours of operation and
non-operation for reasons of security or health and safety.
C. The County also reserves the right to close any area of the Park, including the area in which the
Complex is located, when deemed necessary for public safety and health purposes without any
liability to County for any Concessionaire losses, including, but not limited to, lost income, wages
or other compensation which may be claimed by the Concessionaire. Prior to taking such action,
MCPRD will attempt to coordinate said actions with the Concessionaire to minimize adverse impact
to the Complex operation.
D. The County may establish limits of visitation at any portion of the Complex, based on public health
and safety, or any other reason deemed by the County to be in the public interest (defined below),
in the judgment of the County, without any liability to County for any Concessionaire losses,
including, but not limited to, lost income, wages or other compensation which may be claimed by
the Concessionaire. By definition, “public interest” means, among other things, any action taken
by the County necessary to ensure public safety and health as well as safety of Park property, curb
civil unrest, for fire prevention, for flood prevention/clean-up or for other natural events which could
adversely impact the Park or users thereof. Prior to taking such action, MCPRD will attempt to
coordinate said actions with the Concessionaire to minimize adverse impact to the Complex
operation.
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6.
Emergency Evacuation Plan (“EEP”). The purpose of an EEP is to provide emergency evacuation
guidelines in the event emergency evacuations is necessary. The Concessionaire shall, upon the
Effective Date, provide the Contract Administrator with the name and phone numbers of a primary and
secondary point-of-contact to be notified in the event of an evacuation.
A. Each EEP requires the approval of County and District. MCPRD will coordinate County and
District approval of the EEP.
B. The Concessionaire shall train all contractors, vendors, employees, and volunteers of the Complex
regarding the details of the EEP within fourteen (14) calendar days of their first day of employment,
volunteering, or working at the Complex.
C. The Concessionaire shall update the point-of-contact list as changes occur and shall provide a copy
of the list within seven (7) calendar days of contact change to the Contract Administrator.
D. An amended EEP may be required for Special Event functions or Special Event SUP’s (see Exhibit
2 – Complex Activities and Parameters).
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Exhibit 10 - MCPRD Organizational Chart
(TBD)
Organizational Flow Chart
RJ Cardin, Director
602-506-9500
rjcardin@maricopa.gov
Contract Administration
Emily Miller
Contract Administrator
602-506-9511
emily.miller@maricopa.gov
Operations and Facility Management
Jennifer Waller
Operations Manager
602-506-9500
jenniferwaller@mail.maricopa.gov
Teresa Retterbush
Insert Eastside Regional Superintendent
480-888-5353
Teresa.Retterbush@maricopa.gov
Adobe Mountain Regional Park
Darci Kinsman
Park Supervisor
602-506-2930 ext. 8
Darci.kinsman@maricopa.gov
Phoenix Kart Racing Association
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Exhibit 11 – Park Rules
MARICOPA COUNTY PARKS AND RECREATION
PARK RULES
Adopted August 13, 2003 by the Maricopa County Board of Supervisors
Revised January 13, 2016 by the Maricopa County Board of Supervisors
R-101 DEFINITIONS
The following definitions shall determine meanings for certain facilities, objects, entities or activities.
1. “Abandoned Vehicle” means any vehicle, boat, trailer, or structure, which shows evidence of being left unattended for a period of 48
hours unless displaying an official permit indicating a stay in excess of 48 hours.
2. “Aircraft” means a structure or device for navigation of the air that is supported either by its own buoyancy or by the dynamic action of
the air against its surface.
3. “Camping” means erecting a tent or shelter or arranging bedding, or both, for the purpose of, or in such a way as will permit, overnight
use; or parking a trailer camper or other vehicle for the purpose of remaining overnight.
4. “Commission” means the Maricopa County Parks and Recreation Commission.
5. “County” means Maricopa County.
6. “Department” means the Maricopa County Parks and Recreation Department.
7. “Loudspeaker or public address system” means a device to amplify or direct sound.
8. “Maricopa County Park(s)” means any land or areas under the control of the Maricopa County Board of Supervisors which has been
designated as a Park, Recreation Area or Conservation Area.
9. “Roads” means the entire width between the boundary lines of every way when any part thereof is open, kept or maintained for use by the
public for purposes of vehicular travel.
10. “Special Use Permit” means commercial or non-commercial permits issued by the Department for activities outside a park’s activity
design or which excludes the general public or for which there is monetary gain.
11. “Swimming” means to propel one’s self in water by natural means; consequently aquatic activities including the full or partial use of
inner tubes, air mattresses or personal support devices.
12. “Designated Trail” means an authorized recreational trail designed, constructed, and maintained according to standards within the
county manual; it is within Maricopa County Parks’ boundaries and has been included in the Maricopa County Park trail system inventory.
R-102 SPECIAL USE PERMITS, FEES AND APPROVALS
1. Special Use Permits shall be required for eligible non-profit, government or private, as well as commercial uses.
2. For eligible non-profit uses, a Special Use Permit is required of any person or group for any activity outside each park’s activity design,
or for the use of specific park areas that require the exclusion of general public usage.
3. A Special Use Permit shall also be obtained in advance by any person or group wishing to use a Maricopa County Park for eligible
commercial uses.
4. Park Impact Fees for Special Use Permits shall be negotiated by the Department based on the expenses related to the administration of
the activity, protection of the park and visitors, and in accordance with established fee schedules when applicable.
5. The Department may require commercial applicants to enter into an agreement with the County for a negotiated percentage of gross
receipts not to exceed twenty (20) percent.
6. The Department may require the permittee to post a deposit against damage and clean-up expense, provide a certificate of insurance
naming the department as additionally insured, and/or provide for adequate medical, sanitary and security services.
7. A performance and payment bond may be required from any permitee who is providing a service that was solicited to provide any event
or activity sponsored by the department.
8. The Department may impose conditions on the conduct of any activity, which are necessary to protect the area and maintain its
availability as a public park.
9. A Special Use Permit is not required for any person operating under the provisions of a valid special use or commercial management
concessions agreement with the department.
10. Special Use Permit applications, which are compatible with the management objectives of the individual park, may be refused for health
and safety reasons or to protect the park from significant damages. With respect to competing non-profit uses, the use of park space shall be
granted on a first-come, first-served basis. With respect to competing commercial uses, informal Proposals shall be solicited and the Special
Use Permit awarded to that concessionaire which offers to provide the County with the highest potential revenue and/or best recreational
value to park patrons, provided the concessionaire does not have a poor performance history on any prior permits.
11. All persons entering a park under a Special Use Permit are subject to all entrance and/or use fees, and all rules and regulations
concerning park resource and facility use. The total amount of entrance fees owed by persons entering a park under a Special Use Permit,
may be calculated in advance and paid in accordance with terms negotiated as part of the Special Use Permit.
12. A decision by the Department concerning any Special Use Permit may be appealed to the Commission.
13. Applications for Special Use Permits may be obtained from an authorized representative of the Department.
R-103 VIOLATIONS AND PENALITIES
1. Any person who violates any of these rules shall be guilty of a Class 2 misdemeanor.
2. Any person who violates any of these rules may also be evicted for failure to comply.
THE FOLLOWING ACTS ARE PROHIBITED IN MARICOPA COUNTY PARKS:
R-104 ENTRY, USE, OCCUPANCY, FEES
1. Entering, using, or occupying of a Maricopa County Park or its facilities, designated trails or waterways under the supervision and control
of the Department for any purpose when said parks or areas are posted against such entrance, use, occupancy or where barriers exist.
2. Entering upon or using for any purpose, the land, water or facilities within the boundaries of Maricopa County Parks when a fee, rental,
admission or other consideration has been established for such land, water or facilities, unless the person entering or using such land, water
or facility has paid said fee, rental, admission or other consideration.
Phoenix Kart Racing Association
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Exhibit 11 – Park Rules
(Continued)
R-105 ANIMALS AND PETS
1. Riding, permitting or allowing livestock, saddle, pack, or draft animals except on designated trails or areas under special permit issued by
the Department or by special provisions of a use management agreement.
2. Possessing, allowing or permitting a dog and/or other pets in a Maricopa County Park, unless the same shall be under immediate control
on a leash not exceeding 6 feet in length, except the leash requirement shall not apply to dogs while being used in hunting, or in field trials,
or while being trained, when upon lands open to such uses and it does not interfere with other park activities.
3. Possessing, allowing or permitting a dog in a Maricopa County Park without a current dog license.
4. Allowing dogs or other pets, other than seeing-eye or hearing guide dogs, within the confines of public park buildings.
5. Allowing dogs and/or other animals to create a nuisance, noise or disturbance in any area.
6. Failure of owners of pets to properly remove and dispose of any waste.
7. Scattering and/or depositing the ashes of any animal.
R-106 DISCHARGE OF FIREARMS, HUNTING AND TRAPPING
1. Except as provided by state law, discharging a firearm, shooting with bow and arrow, or setting traps except in locations provided for that
purpose and as permitted by Arizona Game and Fish rules.
R-107 MOTOR VEHICLES AND BICYCLES
1. Operating any motorized vehicle except on roads and parking areas designated by the Department for such purpose.
2. Abandoning any vehicle in any area of a Maricopa County Park. Vehicles violating this section may be towed at the owner’s expense.
3. Parking a motor vehicle or trailer or other device towed by a motor vehicle in such a manner whereby roads, parking areas or other traffic
ways or traffic are blocked or otherwise impeded. Vehicles violating this section may be towed at the owner’s expense if such violation
constitutes blockage of any emergency lane or otherwise interferes with park operations.
4. Operating a bicycle in a careless or reckless manner, or in disregard of the safety of any person or property.
5. Utilizing bike ramps in non-designated areas.
6. Operating, without permission from the County, any motorized skateboard, motorized scooter, moped or like device.
R-108 WATERCRAFT AND SWIMMING
1. Bringing into, or operating any watercraft upon any body of water, except at such places and in such manner as designated for such use or
purpose by the Department.
2. Storing or leaving any watercraft without first obtaining a permit issued by the Department or its authorized concessionaire.
3. Swimming in areas posted against such use.
4. Cliff jumping.
R-109 VANDALISM
1. Destroying, damaging, or removing any tree, shrub, wildflower, cactus, or any other vegetation, or any other vegetative product or by-
products without first obtaining a written permit from the Department.
2. Destroying, damaging, defacing or removing any County property or property administered by the Department.
R-110 LITTERING
1. Depositing or abandoning garbage, sewage, refuse, trash, waste, or other obnoxious material, except in receptacles or containers provided
for such purposes.
2. Throwing or breaking any glass, plastic or ceramic object leaving shards or other fragments on park property.
R-111 PUBLIC BEHAVIOR
1. Conducting one’s self in a disorderly or intoxicated manner, or using threatening, abusive, or boisterous or insulting language, or
conducting or participating in a disorderly assembly, or to solicit for any purpose.
2. Engaging in noisy conduct, operating generators or motors, operating radios, or otherwise making loud or disturbing noises that may
disturb the peace of the area between the hours of 10:00 p.m. and 6:00 a.m.
3. Public urination or public defecation.
4. Engaging in noisy conduct that disturbs the peace.
R-112 CAMPING
1. Camping without first obtaining a written permit issued by the Department
2. Failure to obey all written or posted camping regulations.
R-113 FIRES
1. Building fires except in designated places.
2. Building fires in any area posted against such use.
3. Building wood or charcoal fires at any time posted against such activity (during fire ban).
4. Use of gas or propane stove or grills when use is prohibited (during extreme fire ban).
5. Abandoning any fire without completely extinguishing it.
6. Allowing a fire to escape from control.
R-114 PUBLIC OR COMMERCIAL ACTIVITES
1. Conducting any activity or assembly outside the individual park’s activity design or requiring the use of park areas which exclude the use
by the general public without first obtaining a Special Use Permit from the Department.
2. Posting, placing, or distributing advertising material; erecting a fence or barrier (except under specific use management or lease
agreements), constructing or occupying improvements; or enclosing County administered lands without first obtaining a Special Use Permit
from the Department.
Phoenix Kart Racing Association
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Exhibit 11 – Park Rules
(Continued)
3. Using a loudspeaker, or public address system, or amplifier without first obtaining a Special Use Permit from the Department.
4. Using County administered lands for a commercial purpose without first obtaining a Special Use Permit or use management or lease
agreement from the Department.
R-115 GLASS BOTTLES
1. Possessing glass, ceramic or hard frangible plastic beverage bottles.
R-116 AIRCRAFT AND ENGINE POWERED MODELS
1. Operating any passenger carrying aircraft of any nature or parachute, including parasailing, except in areas designated for such use by the
Department or in an emergency situation.
2. Operating engine powered models and/or toys in any park area not designated for such use or in such a manner that it could be a hazard
to the public.
R-117 INTERFERENCE WITH A PARK RANGER OR A PARK POLICE OFFICER
1. Interfering with any Park Ranger and/or Park Police Officer in the discharge of the Park Ranger’s and/or Park Police Officer’s duties.
2. Failing or refusing to obey any lawful command of any Park Ranger and/or Park Police Officer or other Certified Peace Officer.
R-118 TRAILS
1. Damaging, blocking, restricting or otherwise interfering with the use of a trail.
2. Throwing or rolling rocks or other items into valleys or canyons, down hillsides, mountainsides or trails.
3. Leaving a designated trail or walkway between trailheads.
4. Operating a bicycle, riding a horse, or hiking, except on trails designated for that use.
5. Failure to follow any sign that dictates the use or behavior on a trail.