Historic Triangle Recreational Facilities Authority

City of Williamsburg Agenda Historic Triangle Recreational Facilities Authority Meeting Wednesday, June 14, 2023 @ 3:00 PM Stryker Center, Room 127, 412 N. Boundary Street, Williamsburg, VA 23185 Page 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF MINUTES 3.1. Minutes from the May 10, 2023 HTRFA Meeting 2-4 Historic Triangle Recreational Facilities Authority - May 10 2023 - Minutes - Pdf 4. BOARD MEMBER ANNOUNCEMENTS 5. REPORTS 5.1. Financial Report 5-7 Financials - May 2023 5.2. Executive Director's Report 5.3. Legal report 6. OPEN FORUM 7. CLOSED SESSION 8. PUBLIC HEARINGS 9. UNFINISHED BUSINESS 9.1. Presentation and Discussion Regarding Operating Models for the Historic 8 - 12 Triangle Regional Sports Complex - Brian Connolly, Founder and Managing Principal of Victus Advisors AIS-23-019 - Pdf 10. NEW BUSINESS 10.1. Consideration and Adoption of a Small Purchases Procedure 13 - 15 AIS-23-020 - Pdf 11. ADJOURNMENT Page 1 of 15  MINUTES Historic Triangle Recreational Facilities Authority Meeting Wednesday, May 10, 2023 412 N. Boundary Street, Williamsburg, VA 23185 3:00 PM 1. Call to Order 2. Roll Call Authority Members Present: Scott Stevens, Vice-Chair, James City County; Neil Morgan, Secretary, York County; Robbi Hutton, City of Williamsburg; John Carnifax, James City County; and Brian Fuller, York County Also present were Dan Siegel, Legal Counsel; Robyn Hansen, Legal Counsel; and Dustie McCay, Clerk Authority Members Absent: Andrew Trivette, Chair, City of Williamsburg Staff Members Present: Barbara Dameron, Finance Director and Nicole Trifone, Public Information Officer 3. Approval of Minutes a) Minutes from the March 8, 2023 Historic Triangle Recreational Facilities Authority meeting. Moved by Morgan, seconded by Carnifax, to approve the minutes of the March 8, 2023 meetings. By roll call vote 4-1-0 Ayes: Hutton, Morgan, Stevens, Carnifax Abstain: Fuller Absent: Trivette Mr. Fuller's abstention is due to not being at the March 8, 2023 meeting. 4. Board Member Announcements Page 1 of 3 Page 2 of 15  Historic Triangle Recreational Facilities Authority May 10, 2023 Vice Chair Stevens announced that several Authority Members visited the New Balance sports complex in Boston in April and expressed appreciation for the visit. 5. Reports a) Financial Report Barbara Dameron reviewed the April financials and advised there is a $8,522,467.53 change in the fund balance. b) Executive Director's Report N/A c) Legal report Dan Siegel, Authority Legal Counsel, advised that they are close to a final version of the lease with Colonial Williamsburg. 6. Open Forum Vice Chair Stevens opened the forum for public comment. There were none. 7. Closed Session None. 8. Public Hearings None. 9. Unfinished Business a) Presentation and Discussion of Phase 2 of the Additional Amenities Study Conducted by Victus Advisors - Brian Connolly, Founder and Managing Principal of Victus Advisors AIS-23-018 Brian Connolly reviewed the full draft report for Phase 1 and Phase 2 of the additional amenities study conducted. Mr. Connolly presented the analysis for comparable venues such as The St. James Sports, Health, Fitness & Entertainment Complex, Spooky Nook Sports, and Citynet Center (formerly The Bridge Sports Complex) and explained why Victus chose those facilities. He reviewed the inventory of additional amenity options, potential combinations, construction costs, benefits of each amenity, and the market for sports tourism in the Williamsburg area. Page 2 of 3 Page 3 of 15  Historic Triangle Recreational Facilities Authority May 10, 2023 10. New Business a) Presentation and Discussion Regarding Operating Models for the Historic Triangle Regional Sports Complex - Brian Connolly, Founder and Managing Principal of Victus Advisors AIS-23-017 Brian Connolly explained the management options for the sports complex as being operated by the public entity or contracting operations to a private entity, as well as the advantages and disadvantages of each. He also presented a hybrid option of public/private operations and explained that is usually developed because of unique aspects of the local community, and structured according to the specific strengths/weaknesses of local entities. Mr. Connolly showed the percentage of private and public operators in comparable regional public facilities. The next steps are for Victus to obtain the HTRFA's initial thoughts regarding the pros/cons of public operations versus private contract management. Victus will draft a sample RFP/RFQ document for solicitation of private operator interest and pricing to assist the Authority in making an educated decision on the operating model. Based on the results, Victus will develop specific operating analyses and recommendations for the Authority to consider. 11. Adjournment At 4:33 pm, there being no additional business before the Authority, the May 10, 2023 meeting of the Historic Triangle Recreational Facilities Authority was adjourned. Moved by Fuller, seconded by Hutton, to adjourn. By roll call vote 5-0-0 Ayes: Hutton, Morgan, Fuller, Stevens, Carnifax Absent: Trivette Andrew O. Trivette, Chair Dustie McCay, Clerk Page 3 of 3 Page 4 of 15  HISTORIC TRIANGLE RECREATIONAL FACILITIES AUTHORITY BALANCE STATEMENT May 31, 2023 FY 2023 FY 2023 FULL ACCT ACCT DESCRIPTION ORGINAL REVISED REMAINING BUDGET BUDGET FY 2023 ACTUAL ENCUMB BUDGET 007-00-0000-11001 -HTRFA CASH $ - $ - $ 8,515,213.75 $ - $ - 007-00-0000-11002 -HTRFA CASH-PAYROLL - - - - - 007-00-0000-13010 -ACCOUNTS RECEIVABLE - - - - - TOTAL ASSETS $ - $ - $ 8,515,213.75 $ - $ - 007-00-0000-25001 -ACCOUNTS PAYABLE $ - $ - $ - $ - $ - 007-00-0000-25060 -ACCRUED PAYROLL PAYABLE - - - - - TOTAL LIABILITIES - - - - - 007-00-0000-39030 ASSIGNED F.B. - DEBT SERVICE $ 7,497,407.78 007-00-0000-39999 -UNASSINGED FUND BALANCE - - 1,017,805.97 - - TOTAL BALANCE $ - $ - $ 8,515,213.75 $ - $ - TOTAL LIABILITIES AND FUND BALANCE $ - $ - $ 8,515,213.75 $ - $ - Page 5 of 15 Page 1 of 3  HISTORIC TRIANGLE RECREATIONAL FACILITIES AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR MONTH ENDED MAY 31, 2023 FY 2023 FY 2023 FULL ACCT ACCT DESCRIPTION ORGINAL REVISED FY 2023 REMAINING BUDGET BUDGET ACTUAL ENCUMB BUDGET REVENUE 007-00-0400-44440 - MAINT. OF EFFORT - WILLIAMSBURG $ - $ - $ 586,273.12 $ - $ - 007-00-0400-44441 DEBT SERVICE CTRB - WILLIAMSBURG 2,301,697.46 007-00-0400-44450 MAINT. OF EFFORT - JCC - - 542,302.64 - - 007-00-0400-44460 MAINT. OF EFFORT - YORK COUNTY - - 160,712.12 - - 007-00-0400-44465 - TOURISM ALLIANCE - - 5,195,710.32 007-00-0400-44200 INTEREST INCOME - - 107,884.42 - - TOTAL REVENUE $ - $ - $ 8,894,580.08 $ - $ - OPERATING EXPENDITURES 007-00-0500-51001 - SALARIES & WAGES $ - $ - $ - $ - $ - 007-00-0500-52001 - FICA - - - - - 007-00-0500-52002 - RETIREMENT-VRS - - - - - 007-00-0500-52005 - HOSPITALIZATION - - - - - 007-00-0500-52006 - GROUP LIFE INSURANCE - - - - - 007-00-0500-52016 - TRAINING - - - - - 007-00-0500-53002 - PROFESSIONAL SERVICES - - - - - 007-00-0500-530042- MAINTENANCE, BUILDINGS - - - - - 007-00-0500-530043- MAINTENANCE, OFFICE EQUIPMENT - - - - - 007-00-0500-53005B- OTHER LEGAL FEES - - 115,466.81 - - 007-00-0500-53006 - PRINTING - - - - - 007-00-0500-55101 - ELECTRICITY - - - - - 007-00-0500-55102 - HEATING - - - - - 007-00-0500-55103 - UTILITIES WATER/SEWER - - - - - Page 6 of 15 Page 2 of 3  HISTORIC TRIANGLE RECREATIONAL FACILITIES AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR MONTH ENDED MAY 31, 2023 FY 2023 FY 2023 FULL ACCT ACCT DESCRIPTION ORGINAL REVISED FY 2023 REMAINING BUDGET BUDGET ACTUAL ENCUMB BUDGET 007-00-0500-55201 - POSTAGE - - - - - 007-00-0500-55203 - TELECOMMUNICATION - - - - - 007-00-0500-55301 - INSURANCE - - - - - 007-00-0500-55410 - UNIFORMS & APPAREL - - - - - 007-00-0500-55413 - OTHER OPERATING SUPPLIES - - - - - 007-00-0500-55501 - TRAVEL -MILEAGE - - - - - 007-00-0500-55801 - DUES & ASSOCIATION MEMBERSHIPS - - - - - 007-00-0500-55838 - PRINCIPAL PAYMENTS - - - - - 007-00-0500-55839 - INTEREST PAYMENTS - - - - - 007-00-0500-55840 - COST OF BOND ISSUANCE - - - - - 007-00-0500-55869 - CONTINGENCY - - - - - 007-00-0500-55872A BANK FEES - - 4.00 - - 007-00-0500-58001 - LEASE/RENT OF EQUIPMENT - - - - - 007-00-0500-58003 - LEASE - LAND - - - - - TOTAL OPERATING EXPENDITURES $ - $ - $ 115,470.81 $ - $ - CAPITAL EXPENDITURES 007-00-0505-67080 - 2019-INDOOR SPORTS COMPLEX $ - $ - $ 263,895.52 $ - $ - NET CHANGE IN FUND BALANCE $ 8,515,213.75 BEGINNING FUND BALANCE - ENDING FUND BALANCE $ 8,515,213.75 Page 7 of 15 Page 3 of 3 Staff Contact Andrew Trivette, City Manager Agenda Item Wording Presentation, Discussion, and Direction to Staff Regarding Operating Models for the Historic Triangle Regional Sports Complex - Brian Connolly, Founder and Managing Principal of Victus Advisors Background Information A critical decision of the HTRFA Board is to select a proper operational model for the regional sports complex. Possible models include hiring a private provider, selecting one of the jurisdiction’s Parks and Recreation Departments, or a hybrid of those two. The Authority selected Victus Advisors to help guide the Board through a review of operating models, considerations of pros and cons, and selection of the best model for the Historic Triangle. A key component of the decision will be selecting a model that can best accommodate the balance of local use with the needs of sports tourism. This balance is essential in the shared use facility to ensure revenues are maximized while community, school, and public groups have access. It is anticipated that the Board will devote several meetings of the Authority to this consideration. The board began this discussion and evaluation at the May 2023 meeting and will continue their review with Victus Advisors at the June 14, 2023 meeting. The Board will consider teh release of an RFP for private operators to collect more information on cost and scope of services offered before aiming a decision on an operating model. Previous Relevant Action 05/10/2023 - Initial discussion of operating models with the board and Victus Staff Recommendation Staff recommends that the board authorize staff to proceed with an RFP for operating services. Attachments Draft RFP for Operational Services - Prepared by Victus Advisors Page 1 of 5 Page 8 of 15  Sports Complex Operations RFP Draft V1 – 06.13.23 Prepared by Victus Advisors 1. PROJECT BACKGROUND The Historic Triangle Recreational Facilities Authority (the Authority) is soliciting sealed proposals from qualified youth/amateur sports facility management firms to provide sports complex operations and marketing services for a new indoor sports center in Williamsburg, Virginia. It is the Authority’s intent to negotiate and award a contract to the best qualified firm that offers a proposal that is deemed to be in the Authority’s best interests, both economically and operationally, however the Authority expressly reserves the right to reject any or all bids, to waive any informalities or irregularities in the bids received, and to accept any bid which in its judgment, best serves the interest of the Authority. The Authority was formed by the City of Williamsburg, James City County, and York County to oversee the construction and management of regional sports and recreation facilities as part of the redevelopment of 160+ acres alongside the Colonial Williamsburg Visitor Center. The Authority is tasked with leasing the property, procuring the construction and financing for the project, and overseeing the operations of the facility once it has been constructed. The project site/location is shown below: (INSERT SITE MAP) The Authority voted unanimously in September 2022 to negotiate an interim agreement with MEB to design and build a regional indoor sports facility on the Colonial Williamsburg Visitor Center property in the City of Williamsburg. Architectural firms Clark Nexsen, Guernsey Tingle, and Timmons Group are also part of the MEB design-build team for this project, and they are currently working with the Authority to create 30% design drawings. The indoor sports facility will be at least 160,000 square feet (and likely up to 200,000 square feet) and include 12 basketball courts that can be converted to 24 volleyball courts, 36 pickleball courts, or a full- sized artificial turf (via a roll-out turf system). Additional amenities are also expected to include other revenue-generating activities, such as food/beverage options, clip n’ climb, ninja courses, etc. An initial draft concept plan (subject to change) is shown below for informational purposes: (INSERT CONCEPT LAYOUT) 2. PREFERRED OPERATING MODEL At this stage, the Authority is seeking to identify a potential long-term operating partner for the new sports complex. It is expected that this agreement would be for at least the first 5 years of facility operations, with mutual options for renewal, however the Authority is open to considering other models as proposed by the interested parties. The Authority’s preference is for a “hybrid” public/private option, where a private operator is primarily responsible for: a) day-to-day general management and maintenance of the facility, and b) marketing, 1|Page Page 2 of 5 Page 9 of 15  Sports Complex Operations RFP Draft V1 – 06.13.23 Prepared by Victus Advisors securing, and hosting sports tournaments and economic impact-generating events on the weekends; while the local parks and recreation departments will be responsible for running recreational sports programming during the week (primarily Monday through Thursday) that serves the needs of the Historic Triangle communities. It is currently envisioned that the local programming would require at least 8 of the 12 courts during the week, and the other 4 would be available for the operator to rent/lease to other local sports groups (club teams, leagues, etc.). It is expected that most tournament activity would be 2-day weekend tournaments, or 3-day tournaments over holiday weekends, however the Authority will also support other 3-5 day tournaments when possible with advance notice to the Authority so that they can adjust the local usage. The Authority recognizes that local programming having priority during the week may lessen the opportunity for additional revenues, and therefore the Authority would like the operator to work to maximize the potential for revenue from all other aspects of the facility. This may be through concessions and merchandise sales; rental of courts not served by recreation league play; other revenue- generating activities such as climbing walls, ropes courses, and ninja gyms; facility entry fees during tournaments; etc. The Authority is prepared to subsidize the operations of the venue if necessary, however the Authority will ultimately evaluate the operator on two primary criteria: a) generating incremental economic impact and hotel nights through multi-day regional/national youth and amateur sports tournament activity, and b) generating revenue to off-set operating costs/increase cost recovery. 3. PROPOSAL CONTENT REQUIREMENTS a) Cover Letter / Executive Summary of Proposal – Please submit a cover letter that expresses your interest in the project and highlights the key differentiators for your firm. (2-3 page maximum) b) Summary of Qualifications & Experience – Please provide a summary of firm history, background, and expertise, including up to 5 case studies of relevant sports facility management and sports tourism marketing efforts. If possible, please highlight any operating models that are similar to the “hybrid” public/private approach desired by the Authority. (2-3 pages for firm profile, and up to 5 pages for case studies) c) References – Please provide contact information for three (3) relevant client references. d) Recommended Operations & Marketing Plan – Please provide a narrative describing your recommended operating plan, given both your past relevant sports facility operating experience and the Authority’s preferred operating model described above. You may present one preferred operating plan, or you may provide several alternatives. The Authority is interested in understanding how you believe their vision may best be met through a long-term partnership with your firm. It is expected that this section could include, but may not be limited to an overview of your approach to general facility management, staffing plan, revenue generation, public/private hybrid model recommendations, local/regional support and partnership 2|Page Page 3 of 5 Page 10 of 15  Sports Complex Operations RFP Draft V1 – 06.13.23 Prepared by Victus Advisors opportunities, sports tourism marketing strategy, tracking of visitor data and overnight hotel stays, event hosting needs/requirements, unique/specific elements related to the Williamsburg location, etc. It should be noted that the Authority is interested in creative and innovative responses to this RFP, thus consideration will be given to suggested alternatives or additional services that may not be specifically listed. (no page limit) e) Proposed Cost of Services – Please provide a summary of proposed financial/contract terms that would be associated with your recommended services/operations plan(s). The Authority seeks to understand all potential costs that would be associated with partnering with your firm. (2-3 page maximum) f) Sample Operating Agreement – Please provide a sample sports facility operating agreement from a prior or existing public client. If possible, please provide an agreement that is similar to the operating model/approach preferred by the Authority. 4. PROPOSAL SUBMITTAL INSTRUCTIONS Please submit one (1) PDF copy of your proposal via email to: (EMAIL ADDRESS) Proposals must be submitted no later than: (INSERT DATE & TIME) Questions regarding this RFP must be submitted via email to (INSERT EMAIL ADDRESS) by (INSERT DATE/TIME) Proposals should be prepared simply, providing straightforward and concise responses to requests for information and descriptions of qualifications and capabilities. The Authority will not be responsible for any preparation or submission costs associated with your proposal. Please do not provide any additional marketing materials or other such information beyond what is requested in Section 3 above. 5. EVALUATION & AWARD Primary criteria for proposal evaluation are expected to include, in no particular order: a) Relevant Qualifications & Experience b) Quality of References c) Proposed Operating/Marketing Plan d) Cost of Services In the event that a single firm is uniquely qualified or clearly more highly qualified than other firms offering proposals for this service, the Authority may so state this fact, give a reasonable explanation for this decision and enter into negotiations with the uniquely qualified firm. The Authority reserves the right to reject any and all proposals and to waive any informality or technical defects if, in its judgment, the best interests of the Authority will be served as specified in Section 2.24319 of the Code of Virginia. 3|Page Page 4 of 5 Page 11 of 15  Sports Complex Operations RFP Draft V1 – 06.13.23 Prepared by Victus Advisors 6. RFP PROCESS TIMELINE • RFP Issued – Monday, June 26 • Q&A Deadline – Monday, July 10 by 5:00 PM EDT • Q&A Response – Friday, July 14 • Submittal Due Date – Friday, July 21 by 3:00 PM EDT • Interviews in Williamsburg – If necessary (tbd) Other Notes for HTRFA Discussion: • Can we issue by 6/26? A) Can feedback/edits be provided promptly? B) Who will convert to HTRFA template (Victus can if you provide template)? • We assumed digital/email submission was fine, since it would be more efficient for proposers and also for ease of review. Who should be the Q&A and Submittal contact(s)? • Do we want to have a pre-proposal conference? (Firms are likely not local. Probably not necessary.) • Do we want to have an Appendix with any additional information/materials beyond the site identification and conceptual layout? • Other comments/questions? 4|Page Page 5 of 5 Page 12 of 15 Staff Contact Andrew Trivette, City Manager Agenda Item Wording Consideration and Adoption of a Small Purchases Procedure Background Information The HTRFA legal counsel has advised that the Board should consider adopting a small purchases procedure that is fitting for the Authority. The drafted procedure is consistent with the Code of Virginia procurement requirements. Previous Relevant Action None Staff Recommendation Staff recommends the board adopt the small purchases procedure as drafted. Attachments HTRFA - Small Purchases Procedures Page 1 of 3 Page 13 of 15  Historic Triangle Recreational Facilities Authority Purchasing Procedures Adopted: Last Revised: TBD Last Reviewed: Due to the need for expediency in allowing for the efficient administration of the Historic Triangle Recreational Facilities Authority (HTRFA) the operations, procedures and methods employed in the procurement of higher valued goods and services are not appropriate for the purchase of lower valued items. Therefore, this policy for small purchase procedures is hereby published to govern the procurement of goods and services expected to cost $200,000 or less. The Chair or his designee shall make purchases of goods and services using the following based on the anticipated cost of such purchase: Part 1. General Requirements: A. All purchases of less than $10,000 (small purchase) may be transacted without formal price comparison between suppliers. However, the person responsible for purchasing shall exercise discretion and perform due diligence to ensure that prices are reasonable for the goods or services to be received. B. Purchases over $10,000 up to and including $50,000 will require two quotes, either provided in writing or reduced to writing from qualified sources for each purchase. The quotes shall be retained in your files for the appropriate period of time. Quotes may be solicited telephonically, by mail, facsimile, or electronically. C. Purchases over $50,000 and up to and including $200,000, shall require three quotes in writing from responsible sources. The written quotations must be retained in the purchase file for the period of time required by law. D. A single or term contract for the purchase of professional services for which the aggregate or the sum of all phases not expected to exceed $80,000 may be entered into without requiring competitive negotiation. E. Purchases where the estimated cost of all phases is expected to exceed $200,000 shall be procured of goods and services as described in the Virginia Public Procurement Act (Virginia Code §§ 2.2-4300, et seq.). Solicitations will be posted on the HTRFA website at least ten (10) days prior to the date set for receipt of bids. The Award notice will be posted on the HTRFA website for ten (10) days immediately following the actual time of the award. 1 Page 2 of 3 Page 14 of 15 Part 2. Cooperative Purchasing: For the purpose of increasing efficiency or reducing administrative expenses in any acquisition of goods, services, or construction, HTRFA may join and participate in cooperative procurement agreements with one or more other public bodies, private educational institutions, or agencies of the United States, so long as such procurement complies with the joint and cooperative procurement provisions and other provisions of the Virginia Public Procurement Act. Items purchased using a Virginia Department of General Services Statewide Contract (statewide contract) are deemed to comply with the Virginia Public Procurement Act and shall not require further competition. Part 3. Sole Source Purchases: Upon a determination in writing that there is only one source practicably available for that which is to be procured, a contract may be negotiated and awarded to that source without competitive sealed bidding or competitive negotiation. The writing shall document the basis for this determination. A written notice shall issue stating that only one source was determined to be practicably available, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. This notice shall be posted on HTRFA’s website. A copy of the written determination shall be attached to the purchase order, shall be maintained in the procurement file, and be retained for the period of time required by law. Part 4. Emergency Purchases: In emergency cases, competition is not required, however, it is encouraged if at all practical. HTRFA shall issue a written notice stating a contract is being awarded or has been awarded on an emergency basis, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. The notice shall be posted on HTRFA’s website. 2 Page 3 of 3 Page 15 of 15