Contracts

September 2018 Fair Board Meeting Agenda Packet Posted

Check It Out (1)

The full agenda packet with the contracts has been posted. Choose the “September 27, 2018” meeting to access the files. Please share with others who are interested.
https://ocfair.com/public-information/public-meetings/

Master Site Plan Process (See 18_09_Staff_Reports_A_J1)
The plan is to hold one (1) public meeting in October and finalize the Master Site Plan in November.

Equestrian Center and Facility Wide Infrastructure Analysis (See 18_09_Staff_Reports_A_J1)
The proposal is to analyze the infrastructure of the Equestrian Center and then sometime in 2019 to analyze the infrastructure of the bulk of the Fairgrounds. An analysis of infrastructure needs to be done before the Master Site Plan is created in order to determine infrastructure which needs to be updated or replaced. The Fairgrounds has $55 million in reserves, so money is not the problem. Staff is considering using the Equestrian Center for storage space. See “Long Term Storage Solutions.”

Sales Tax Collection and Remittance to City (See 18_09_Staff_Reports_A_J1)
Fairgrounds staff take the position that a City business license is not required. Fairgrounds staff discuss sales tax and point out contract language requiring reporting of sales tax but does not state that Fairgrounds staff will be active in having sales properly reported to allow money to earned in the City to be returned to the City. Should the City implement a gate tax, a per drink tax, and/or a parking tax to receive revenue from the Fairgrounds?

Long Term Storage Solutions (See 18_09_Staff_Reports_A_J1)
Solutions for long term storage are needed. Offsite storage space can be rented for about $100K per year or a Butler building could be constructed or the Equestrian Center space could be used for storage.

New Safety and Security Board Policy (See 18_09_Staff_Reports_A_J1)
The proposed policy is:
Draft Policy 2.12

The CEO will not operate without safety and security planning, procedures and training for the protection of the Association, the staff and guests.

1. Operate without an Incident Command Procedure/Emergency Preparedness Plan, reviewed by appropriate governmental agencies, and communicated to key staff, vendors and production personnel.

To this end;

A. The CEO will schedule a security meeting with the appropriate security partner representatives and two policy representatives from the Board of Directors prior to the start of the annual OC Fair and once in the approximate mid-point of the annual OC Fair.

The CEO will ensure the continued development and delivery of Security, Health and Safety training annually for staff and management of the OC Fair & Event Center.

The CEO will ensure the annual budget supports continuing investment in technology and equipment for Security, Health and Safety.

The CEO will ensure the ongoing investment in staff/management continuing education in Security, Health and Safety for the advancement of procedures and best practices.

The CEO will ensure risk management facility inspections are conducted regularly and corrections are made in a timely manner.

 

Approval of Travel Request to San Antonio, TX (See 18_09_Staff_Reports_A_J1)
State travel is prohibited to states such as Texas which discriminate against same sex couples or their families or on the basis of sexual orientation, gender identity, or gender expression. The proposed trip is to the annual International Association of Fairs and Expositions (IAFE) allegedly for training. CEO Kramer is making a presentation on “How to Market Your Facilities” and “Creating Community Giveback Programs on Your Fairgrounds with Any Budget”. Ken Karns is presenting in a panel on “Fairgrounds Master Planning - Developing a Vision.” This is an unneeded trip at Public expense and does little to benefit the Public.

Checks and Contracts:
Cash and cash equivalent reserves are over $55 million. See 18_09_Financial-Packet_Aug


Fragomen, Del Rey, Bernsen & Loewy, LLP is an immigration law firm which was previously engaged to process VP of Operations Ken Karns NAFTA TN clearance and H-1B work visa. Fragomen was paid $5,800.00 on June 7, 2018, using check 84090. See 18_09_Financial-Packet_Aug


Ray Cammack Shows (RCS) which operates the carnival and midway was paid $7,535,495.71 for the 23 day run of the 2018 OC Fair. This money leaves Orange County and does not return. See 18_09_Financial-Packet_Aug Electronic Payments Summary August 2018


Straub Distributing / Anheuser-Busch paid $156,712.00 in sponsorship fees. See contract SA-272-18SP in 18_09_Standard_Agreements1

Contact Information to Follow Up on Issues

Contact the Fair Board 

Chair Barbara Bagneris bbagneris@ocfairboard.com
Vice Chair Robert Ruiz rruiz@ocfairboard.com
Newton Pham npham@ocfairboard.com
Sandra Cervantes scervantes@ocfairboard.com
Doug La Belle dlabelle@ocfairboard.com
Gerardo Mouet gmouet@ocfairboard.com
Ashleigh Aitken aaitken@ocfairboard.com

Contact CEO Kathy Kramer kramer@ocfair.com

Contact VP of Operations Ken Karns  kkarns@ocfair.com

Contact VP of Business Development Michele Richards mrichards@ocfair.com


Master Site Plan: "Development Report"

When Everything is for Sale (1)

The Master Site Plan process is a revenue centered process, not a community, education, agriculture, or recreation centered process.  This is the section from the winning proposal for the Master Site Plan process which discusses the plans for development of the Master Site Plan. It should be noted that multiple requests have been made for documents regarding this work and no documents have been produced. [A] This section is from pgs. 24-25 of the C. H. Johnson Consulting, Inc. proposal:

TASK 8 – MASTER SITE PLAN DEVELOPMENT

This task will produce a Master Site Plan Report containing summary of key findings and initial recommendations for planning and future use of the Fairgrounds. Our recommendations will stem from a thorough understanding of background data, community input, operational and facilities optimization, market demand, and the OCFEC mission, thereby translating community-based programming and operational strategies into physical place-making that serves the County for generations to come.

The master site planning will include evaluation of local market demand to formulate and evaluate alternative approaches to uses, relationship of uses, phasing, and integration of existing activities.

The cohesive development of a comprehensive, data-driven, visionary MSP will be the culmination of the well- established fluid exchange of information (data) and ideas from the Internal and Community Stakeholders which will empower the 32nd District Agricultural Association’s Board of Directors to make the most informed decisions regarding the future of how OCFEC will fulfill its Mission Statement: “Celebration of Orange County’s Communities, Interests and Heritage.”

TASK 8.1 – MASTER SITE PLAN

Following the Options Workshop/Meetings, and based on additional input from internal and community stakeholders, we will prepare a Master Site Plan with initial recommendations for future use of the OCFEC site and facilities.

Our team’s approach to physical master planning will stem from an understanding of local conditions and an intimate relationship with the site, including topography, drainage, existing uses, relationship to surroundings, and the social context of human activities. It will incorporate sustainable, low impact development techniques that will allow a more intensified program of uses to “sit lightly” on the land. The master plan will be suitable as a basis for detailed site planning and entitlement processing to be conducted as part of a future contract.

The master planning process will translate community-based, evidence-driven programming and operational strategies into physical place-making. This will include alternative land use concepts that describe different approaches to uses, relationship of uses, phasing, and integration of existing activities.

  • Establish zones for County Fair and other major events, active and passive open space, neighborhood and community destinations and recreation, and economic “drivers” including an optimized mix of new infill development.

  • Integrate usable buildings and outdoor spaces that will provide efficiency and serve as high-functioning venues for community activities.

  • Address site drainage through sustainable system integrated into the roadway and open space network.

  • Incorporate sustainable landscape strategies and a multi-purpose open space system.

  • Design for walkability and interconnected urban form and compact relationship of complementary uses.

  • Create possibilities for a hierarchy of circulation, entry, identity, and image for key landmarks, with more private or support uses buffered and served by more minor roadways.

TASK 8.2 – PREPARE REPORT DELIVERABLES

The Consulting Team, in conjunction with the Executive Management Team and Key Management Support, and Master Site Plan Committee, will prepare drafts and a final fully documented 10-Year OCFEC Master Site Plan that addresses the best options for the District and addresses all of the key issues and planning process listed in your RFP. A presentation will be made to the full Board of Directors for review prior to implementation.

 

[A] The documents showing the work performed may have been disposed of or in the custody or control of another unnamed state or local agency or may not be able to be located according to CEO Kathy Kramer. 

Contact CEO Kathy Kramer at kkramer@ocfair.com

Contact VP of Operations Ken Karns who is in charge of the Master Site Plan at kkarns@ocfair.com

Contact Fair Board Directors Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk by emailing Summer Angus sangus@ocfair.com

C. H. Johnson Consulting, Inc. from Chicago, IL  is the contractor for the Master Site Plan process. A copy of the entire proposal is available on the "OC Fairgrounds Documents" page listed on the right side of this page. We have no idea why the OC Fairgrounds hired a company from Chicago and could not find a planning firm in the Los Angeles-Orange County area or even in California.   

This is one in a series of posts looking at individual Master Site Plan tasks to gain a greater understanding of how the OC Fair Board Directors (Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk) and Executive Management want to push the OC Fairgrounds away from being the fairground we currently enjoy. 

 


Who's Who at the Fairgrounds: Heroes Hall Museum vs. Heroes Hall Veterans Foundation

Check It Out (1)

Heroes Hall Museum (Museum) is owned and operated by the 32nd District Agricultural Association (32nd DAA) which is the state agency owning and operating the OC Fairgrounds. The Museum was built by the state with the state providing most of the funding. Most of the funding for operations, outreach, and other needs comes from the state. The Public can make a donation directly to the Museum of money or historical items, but the donation is not tax deductible. Volunteer opportunities are available by contacting Museum staff.

Heroes Hall Veterans Foundation (Foundation) is a private organization which has a contractual relationship with the 32nd DAA. The Foundation does not own or operate the Museum or provide the majority of Museum operating funds. The Foundation raises money which may be used for a variety of purposes and is not required to give all money raised to the Museum.


Who’s Who at the Fairgrounds: Tandem

Benjamins Question (2)

Tandem, formerly known as California Performance Marketing Group (CPMG) was hired to sell premium space at the annual OC Fair (called Platinum Partners), sponsorships, and group ticket sales. In 2015, outside the view of the Public, a decision was made to eliminate the state employees selling year round event rentals and to outsource all year round event sales to Tandem.

Tandem is paid on commission and receives free office space at the OC Fairgrounds. The commission schedule is:

Sponsorship Sales

Cash from new sponsors, mobile marketing tours and premium space renters 15%

Cash from renewing sponsors, mobile marketing tours and premium space renters 8%

 

Sponsorship Trade

Budget-relieving trade, both new and renewing 3%

 

Incremental Cash

Incremental cash from renewing sponsors, mobile marketing tours, and premium space renters 15%

 

Event Sales

Cash from new events (rent only) 25%

Cash from first event renewal (rent only) 17%

Cash from subsequent event renewals (rent only) 8%

 

Group Ticket Sales

Cash from new group ticket sales (25 or more tickets) 15%

Cash from renewing group ticket sales (25 or more tickets) 8%

 

Tandem’s contract runs through 2018.  Download Tandem Contract Amendments


Who’s Who at the Fairgrounds: Orange County Market Place

Chicken Question (2)

Tel Phil no longer operates the Orange County Market Place and has assigned the lease to Spectra. The lease runs through 2024 with a 10 year option to renew. Rent started at $1,700,000 per year in 2014 and increases to $2,668,500 in 2034.

A copy of the lease with amendments is here:  Download OC Market Place Agreement Amendments


Who's Who at the Fairgrounds: Spectra

Money Question (2)
Spectra, formerly known as Ovations, is a part of Comcast Spectacor, which has contracts to provide food, beverage and alcohol services at the OC Fairgrounds. Spectra pays a commission of 34% of gross sales of food and non-alcoholic beverages; 10% of gross catering sales; 40% of gross beer, wine and spirit sales; and 50% of the amount received by Spectra for commissions, fees or buyouts during events. Spectra holds the Alcoholic Beverage Control (ABC) license for the OC Fairgrounds because governmental agencies are not allowed to have ABC licenses. The contract runs until 2024.

Current Contract  Download Spectra Ovations Contract with Amendment

 


Who’s Who at the OC Fairgrounds: Equestrian Center

At the corner of Arlington Drive and Newport Blvd, across the street from TeWinkle Park, is the equestrian center. The approximately 7.5 acre facility includes stables, riding arenas, wash areas, and hot walkers, among other amenities. The facility is owned by the state and operated under contract with an outside operator. Terms of the operations contract include payment of the greater of $3000 per month or 10% of the operators gross revenue each month in addition to expenses specified in the contract. The agreement is on a month to month basis.

The current lease is here  Download Equestrian Center Lease


$252,369 Contract for a Master Site Plan Process Has Unmet Needs & Unanswered Questions

What They Arent Telling You (1)

The Master Site Plan process cost the Public who own the OC Fairgrounds $252,369, and the Public was allowed one (1) meeting to have input. Work on the Master Site Plan started in October 2016. Board members, executive management, staff, and contractors were given opportunities for input to steer the process before the Public was given their one (1) meeting in June 2016.

The contract cost was increased by 30% in October 2017 with the contract amendment not made public until December 2017. When CEO Kathy Kramer was asked why the 30% increase in the contract amount was needed, CEO Kramer could not explain why the additional funds were required or what would be done with the additional funds. CEO Kramer claimed that the scope of work or deliverables had not changed and that the schedule had not changed even though the contract now cost 30% more, which does not make sense. CEO Kramer also could not explain why the contract was extended by a year.  

The contract with the Master Site Plan contractor is here: Download Johnson Consulting Amended Agreement

The proposal for Master Site Plan services which is now defines the work to be performed is here:

 Download Johnson Consulting Response to OC Fair Master Site Plan MS-12-16 8.19.16...