We manage many different types of recreation properties under
many different arrangements with government bodies.
However, the most common arrangement is for Recreation Resource
Management to operate a revenue-producing property under a
"special use permit" or concession. In these contracts,
Recreation Resource Management is responsible for all aspects of
managing the property, generally putting in place on site
employees and managers. RRM performs maintenance and
cleaning work for the property, and is responsible for most
normal operating expenses. In return, RRM collects all
revenues from the property, paying the government an agreed-upon
percentage of the revenues as a fee. Typically, these
contracts will specify the scope and quality standards of the
work to be performed, the operating hours and days, the maximum
fee rates, and, of course, the agreed-upon revenue share to
government.This type of contract structure has a number of
advantages over typical flat fee or cost plus outsourcing
contracts:
 | Government expenses are capped - since there are none! |
| The private operator, such as RRM, can work to improve
both expense levels and revenue generation at the property.
In our experience, there is usually much more value to be
created for the government in many recreation facilities from
revenue enhancement than through productivity |
| The contracts are not subject to year-to-year
appropriations processes. No money to pay facility
expenses or the private contractor has to be budgeted each
year |
While this is our preferred arrangement, we can work many
different ways. Call or write us and we can discuss your
needs. |
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