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Prospectus Questions and Answers

Prospectus
Project Meeting 7/9/07
General/Misc
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Additional Questions and Answers
September 26, 2007

Q:  Regarding the redevelopment process of Lake Berryessa, we are trying to ascertain the Bureau of Reclamation guide lines as to what kind and size of trees that can be cut down to accomplish the project.

A:   Without full development plans, we can not perform an environmental evaluation.  Once Reclamation awards contracts the development plans will be evaluated within the NEPA process and questions like this can be readily answered.  Please submit your plan accordingly.  Keep in mind that there will be some negotiations that will take place after award to finalize and clear the development plan.

Q: How do I access the Auto Cad files on the Prospectus website?

A:  If you do not have AutoCad, navigate to the following website and download the free AutoDesk Design Review software.

Q:  If you receive no proposals for a particular concession area, what will Reclamation do?

A:  Reclamation may consider closing the concession area; operate it in a reduced manner without a concession contractor as a government operation; re-advertise the opportunity to operate a concession at that specific location.  

Q: Recently an audit was performed by Reclamation on the current concession contractors financial documents for the past few years. Does that audit fulfill most of Criterion B4(a): Financial Health and History of Meeting Financial Obligations?

A: Reclamation can not advise any offeror on the quality of or the content of any submission until recieved in the final proposal. The evaluation team will determine how well any submission rates against any criterion

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Q: Please define the Cultural Resource of Lake Berryessa as referred to in the prospectus many times.

A: Cultural Resources are considered, archeological, historic or pre-historic remains, structures, and artifacts. Please see excerpts from the FEIS dated November 2005.

Archeological Resources - The first systematic cultural resource studies in the reservoir area were conducted prior to 1957, during construction of Monticello Dam. During the course of that work, 53 archeological sites were recorded; of these, 48 were inundated with the filling of the reservoir. Subsequent work, including two archeological investigations in the 1970s and 1980s, documented 29 more sites at Lake Berryessa. Many of these sites are partly or fully submerged during periods of high water. The most recent surveys concluded that many of the area’s cultural resources are buried; therefore, in most instances, cultural resources are identified only where the overlying ground surface area has been eroded or disturbed. Documented archeological sites at the reservoir consist of isolated artifacts, artifact scatters, artifact concentrations, campsites and large village sites. The large village sites were located adjacent to the major drainages and are now well below low-water levels. No documented sites are listed on or potentially eligible for listing on the National Register of Historic Places.   More...
  • Historical Resources - Rancho Las Putas, located on Putah Creek and covering most of Berryessa Valley, was originally a Mexican land grant consisting of eight square leagues. Mexican Governor Micheltorean granted the 35,515.82-acre parcel to Jose and Sixto (Sisto) Berryessa in 1843. The grant was confirmed by the United States Supreme Court in 1855, after California became part of this country. By 1866, Rancho Las Putas was being subdivided for settlement and development. That same year, the town of Monticello was laid out within the boundaries of the former rancho. By 1867, a hotel and store were in operation there and the whole valley was taken up by new settlers. No historical remains related to these developments and located on Reclamation-administered lands surrounding the reservoir are listed or eligible for listing on the National Register of Historic Places.   More...

Q:  Please refer to Part 5 Principal Factor 4 - Attachment No. 2 - the form titled:  ACQUISITION AND START-UP COST "Initial Improvements" please define Initial.  First week?  First year?  The redevelopment process?

A:  Initial improvements are those improvements that are necessary for the operation to provide the required and authorized services as demonstrated in the proposal package.  For example, if your proposal package shows the replacement of certain assets which are necessary for the required services, then this would be part of the initial improvements and should be completed in a timely manor.  The specific time frame is hard to define in the proposal as Reclamation is not currently aware of what services adjustments you might propose.  Some improvements could be done in a matter of weeks while other could take months

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Q:   Principal Factor 3 - Business Structure B3 (a) does not address a Limited Liability Company (LLC) entity.  The Information requested is either for a corporation, partnerships or joint ventures.  As an example LLC’s do incorporate and do not have Articles of Incorporation.  Can an offeror change the verbiage that addresses an offering by an LLC without the proposal being viewed as non-responsive?

A:  Yes, an Offeror should provide the appropriate description of their Business Structure if it does not fit within the descriptions provided.  

Q:  The RFP requires a format that uses 1) number of covers sold by meal period and 2) avg check per cover by meal period.  How does the Bureau want this information presented?  Would you all like us to break this up into breakfasts, lunches and dinners sold per year?  Or is there another way we should be doing this.

A:  A meal period refers to Breakfast, Lunch, or Dinner.  Offerors could present this data in whichever way they feel best serves their own needs.  For Reclamation, it is a factor of the overall feasibility and designed to help determine if an Offeror is logically and realistically doing business projections.  Reclamation could evaluate the data if an Offeror said 100,000 covers per year at $20 each(avg.) but might be somewhat better if displayed as 25,000 breakfast covers @ $11, 40,000 lunches at $16, and 35,000dinners @ $32.  An Offeror may propose a facility where they do not intend to offer breakfast or one in which lunch and dinner are all the same and could be expressed as 'Lunch/Dinner.  There is some flexibility in how an Offeror may present this information, please use your best judgement.

Q:  When new construction takes place within the concession area will the construction contractor be working for the Bureau of Reclamation? 

A:  No, the incoming concession contractor will be responsible for all construction contracts and construction activities authorized and approved by Reclamation.  The construction contractors will work for the new concession contractor.

Q:  Is there a Bureau of Reclamation standard set of specifications?  

A:  Reclamation utilizes industry standard specifications.  All construction activities are required to meet local, state and Federal codes.  Prior to construction, all plans and specs must be approved by Reclamation.

Q:  What is the current retail pricing method used by Reclamation to direct concessioners on retail merchandise pricing? Would you please provide whatever guidelines that are in use currently?

A:  Currently retail pricing is being monitored by Reclamation in the existing contracts.  Reclamation intends to utilize the Concession Guidelines to develop pricing methods in future contracts.

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Q:  Will the same retail pricing method be used going forward or what is Reclamations plan.

A:  Please see Chapter 7 of the Concession Guidelines available on the Prospectus website or directly at this link. For those parties familiar with the NPS rate approval approach, this is nearly identical.

Q:  What pricing approach is used by Reclamation Lakewide with regards to pricing (e.g. flat $ per gallon, mark-on/up % per gallon)? 

A:  Please see previous answer.

Q:   We understand that if a successful offeror has decided not to retain the existing boat slips, the appraised value would not have to be paid.  Is this correct?

A:   Yes.  Unless Reclamation directs the existing concession contractor to not remove the existing boat slips.

Q:   If a successful offeror plans to replace all existing slips, how long could the existing slips be retained in order to maintain service?  We anticipate that it would take 2 years to remove the existing slips in an orderly fashion and replace them with a quality product.

A:   Offerors should describe in their proposal how and when they proposed to replace existing slips.  Assuming Reclamation would allow the existing slips to remain for a short time (2 years as identified in this question), the replacement time frame of 2 years is probably not excessive, as long as the existing slips are maintained in satisfactory condition and there is a firm replacement date.

This prospectus does not propose to limit the ability of a new incoming concession contractor from negotiating property transfer with an outgoing concession contractor.  For example, a successful offeror may specify what facilities they would like to go into the new contract and if Reclamation agrees will direct the existing contractor to not remove those facilities.  The new contractor must then pay the appraised value to the existing contractor for those facilities.  Additionally, that same offeror may propose an arrangement with the outgoing contractor that allows the short-term use of certain facilities (slips in this example) while they begin re-development and until such time as new docks can be placed.  Such a proposal could be as simple as agreeing to take on the responsibility of eventual removal, a rental rate, or a percentage of the revenue derived from their use for the period of time the slips remain.  This arrangement would be made by willing participants.  In such a case Reclamation could direct the willing parties to treat the slips as though they were personal property and would not be a part of the compensation determination. 

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Q:  Concession revenues available in the near term will be substantially less than existing revenues due to the removal of all long term trailer sites.  The entire cost of maintaining and operating treatment facilities will then fall on a much smaller revenue base.  Much of the existing infrastructure will not be needed (for example roads and utility distribution to trailer sites.  Due to the age and condition of the water and effluent treatment systems, they will have to be eventually replaced.  Almost all above ground power, water and sewer will have to be replaced in the near term (from immediately to a maximum of two years) and all in-ground power, water and sewer is likely to be replaced (and expanded) over 5 to 7 years.  There is no economic viability to purchase existing power, water and sewer infrastructure when the cost of removal, at a later date, will be a significant cost in itself.  Our determination is that the cost of purchasing water, sewer and power systems (that will be completely replaced at a future date) is prohibitive.  Therefore the question is:  Can a new concessionaire use the above described infrastructure without a cost element?

A:  No.  In your example, the existing infrastructure is the property of the current concessionaires.  If a new concessionaire wants to utilize the infrastructure, they have 3 choices that have varying levels of risk.

Reclamation may direct that certain permanent facilities not be removed and must be purchased at the appraised fair value from the existing contractor by the successful offeror.  The facilities then become the property of the incoming concession contractor and are managed, maintained or replaced according to the concession contract.
  1. The successful offeror may identify those facilities it wishes to use under the new contracts, if Reclamation agrees and approves those facilities, Reclamation will direct the existing contractor to not remove them and the new concession contractor must purchase them at the identified appraised value.  If this option is selected then the facilities become the property of the incoming concession contractor and are managed, maintained or replaced according to the concession contract.
  2. Indicate no interest in any type of purchase but indicate they would use it initially if it remains and then be responsible for the removal and thereby remove that responsibility from the existing contractor.  Similar to the previous answer regarding boat slips, the offeror may propose an arrangement with the outgoing contractor that allows the short-term use of certain facilities while they begin re-development and until such time as the facilities can be replaced, provided Reclamation has not directed the existing contractor to remove those facilities.  Such a proposal could be as simple as agreeing to take on the responsibility of eventual removal, a rental rate, or a percentage of the revenue derived from their use for the period of time the property remains.  This arrangement would be made by willing participants.  In such a case Reclamation would not direct the existing concession contractor to remove the property and would treat the exchange as though it was personal property and would not be a part of the compensation determination.

Q:  Can you please answer the following questions from Part 6 of the Operation Plan Titled MARINA SERVICES? 

“All boats must meet U.S. Coast Guard (USCG), Federal, and State regulations regarding sanitation.” 
I agree with this statement but how are we to enforce this?  Are we to inspect every boat that launches?  If so will the Bureau of Reclamation be doing the same at the free launch ramp?

“Vessel 26 feet long and longer carrying seven passengers of more must have a minimum crew of one certified operator and one deck hand” 
Is this for commercial boats or all boats?  If it is for all boats is how is this to be enforced?  Will the Bureau of Reclamation be enforcing this at the free launch ramp?

“A service boat with towing capacity will be on call 24 hours a day during the season for mechanical emergency problems……”  
Is this required if there are no boat rentals?  Can there be a charge for this service?

A:  Please review the following wording in the TEXT BOX that precedes this section of the prospectus on Operating Plans (PART 6 Exhibit G):

Introduction to Operating Plan for this Prospectus - The following Draft Operating Plan is provided to serve as a guide/template for bidders to utilize in preparing an Operating Plan that addresses their unique proposal.  There may be parts of this Operating Plan that bidders do not believe fit their proposal or there may be additional factors that bidders believe need to be added to properly address their proposal.  In either instance bidders can adapt this format to meet their anticipated needs.  All bidders do need to be aware however, that Reclamation retains the right to make changes to any eventual final Operating Plan proposed by any successful bidder(s).

This ‘Introduction’ makes it clear that the section of the prospectus on Operating Plans does not apply in all instances.  Furthermore if Reclamation believes that there are areas not properly addressed they will make changes before executing any final contract as per the last sentence in the text box. 

Since it is under the section titled MARINA SERVICVES and is a part of the Operating Plan for Concession Operations the references here, unless otherwise obvious, only apply to rental craft.  If you are not proposing any services that apply to some of these particular requirements then those requirements will not apply.  If you permit some rental boats to be out overnight, including houseboats, then yes you will need the availability of someone to function as a service boat in case of a breakdown.  This does not mean that a particular person has to be on duty being paid for all those 24 hours but someone qualified would need to be available to go on duty to provide assistance if contacted.  Yes you can charge for this service unless the nature of the problem is because a rental boat has maintenance problems that are not specifically attributable to inappropriate operations or other failures of the renter.  This is a reasonable part of supporting your business operation with the public.

The Operating and Maintenance plans and other attachments to a specific concessionaire’s contract do not necessarily apply at other commercial or public locations unless there is some reason to also identify and enforce them.  Since no business is being conducted at the free launch areas contractual requirements of the concessionaires do not apply.

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Prospectus
Project Meeting 7/9/07
General/Misc
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Please direct questions to Janet Rogers, Park Manager
(707) 966-2111, x105