Request for Proposals. Milton Reservoir Lease or License. Weld County, Colorado
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1 Request for Proposals Milton Reservoir Lease or License Weld County, Colorado Page 1 of 11
2 1.0 INTRODUCTION 1.1 Objectives The Farmers Reservoir and Irrigation Company ( FRICO ) is soliciting proposals for granting various lease privileges at the Milton Reservoir site ( Site ) effective January The Site offers a wide variety of potential recreational opportunities such as waterfowl hunting, fishing, boating (motorized and nonmotorized), and camping. The Site also offers a small amount of grazing land for cattle. This RFP is designed to solicit proposals for any part or all of the potential uses at the Site. 1.2 Background FRICO is a mutual ditch company organized for the purpose of delivering water to its stockholders. Milton Reservoir is part of the FRICO system of canals and reservoirs. The Reservoir has a surface area of approximately 1,445 acres when full. Normal operations fill the reservoir to a maximum depth of 37 feet. Milton Reservoir is located in unincorporated Weld County, Colorado, approximately 47 miles Northeast of Denver. The Site occupies part of Sections 3, 4, 9, 10, 11, 14, 15, 16, 22, and 23, Township 3 North, Range 65 West, of the 6 th P.M. In total, the Site is approximately 2,196 acres (see Exhibit A for map). The Site is currently zoned A (Agricultural). It is ultimately the proposer s responsibility to verify that its proposed use or uses comply with applicable County regulations. The successful proposer will be responsible for all costs and risks associated with any applicable development review process. No proposed use may adversely impact the primary purpose of the Site, which is the storage and delivery of water to FRICO s stockholders and customers. All proposals must specifically describe protections that will be implemented to protect this primary purpose. Page 2 of 11
3 1.3 Schedule of Events Release of Request for Proposals Deadline for Questions Distributions of RFP Amendments if applicable Deadline to Submit Proposal Notice of Award Thursday, July 7 th Thursday, July 28 th Thursday, August 4 th Thursday, September 8 th Thursday, October 6 th 1.4 Submission of Proposal Proposals must be mailed or delivered so that they are physically received by FRICO by 4:00 p.m., Mountain Time, on Thursday, September 8th, Late proposals will be considered in FRICO s sole discretion. Two paper copies and one digital copy of the proposal should be mailed or delivered in a sealed envelope. A label must be attached to the outside top left corner beneath the bidder's return address, stating that the contents are: Response to RFP - Do Not Open until 4:00 p.m., Thursday, September 8th, FRICO assumes no liability for incorrect addresses or failed delivery of Proposal packages by public or private carriers. 1.5 Instructions Follow the format required by the RFP. Ensure that the response is clear and concise. Provide complete answers to all questions and address all requirements. Nonresponsive proposals may be rejected. Submit two hardcopies AND one digital copy of the proposal. Submit the response on time. Proposals are evaluated based solely on the information and materials that they include. 1.6 Proposal Requirements The following items must be included in the proposal. Detailed requirements for each item are set out in Section Title Page Transmittal Letter Acknowledgment of RFP Requirements Compatibility with Lease Terms acknowledgement per section Bid Deposit Statement of Qualifications Description of Proposed Use and Development Page 3 of 11
4 1.6 Project Coordinator Proposals must be delivered to the Project Coordinator listed below. For information concerning the Request for Proposals (RFP) process, required format and the schedule of events, please direct your questions to the Project Coordinator: Eve Craven The Farmers Reservoir and Irrigation Company 80 South 27 th Avenue Brighton, CO Phone: , ext Optional Site Visit An on-site inspection of the Site is recommended. Please contact the Project Coordinator to schedule a site visit. 2.0 RFP PROCESS 2.1 Modification or Clarification of the Lease Proposal All recipients of this RFP should review its contents carefully. A recipient may make a written request for clarification of the RFP. Requests should be submitted by , with the subject line: Questions Related to the Milton Reservoir RFP and sent to the Project Coordinator no later than the date specified in the Schedule of Events. At its option, FRICO will issue amendment to modify or clarify the RFP in response to submitted questions. When applicable, FRICO will distribute the amendment by to all parties who have requested the same of the Project Coordinator. 2.2 Proposer Oral Presentation FRICO may select one or more proposers for in-person interviews in late September 2016, or may make an award to one or more proposers without conducting interviews. 2.3 Proposal Preparation and Submission Requirements The following Items must be included in the proposal. Failure to include any of these items may result in a nonresponsive determination, and the proposal may not be considered. Proposals are to be organized and presented as follows: Page 4 of 11
5 Section One: Title Page The title page must include the title of the Proposal being submitted, type of proposed activity, submittal date, and the name and logo of the company submitting the Proposal. Section Two: Transmittal Letter The Transmittal Letter must include the complete name and address of the proposer, and contact information for an authorized representative who can be contacted by FRICO concerning the proposal. It shall also include the notarized signature of the individual authorized to bind the proposer. Proof of authorization to sign on behalf of another or corporation must be provided if applicable. Section Three: Acknowledgment of RFP Requirements Proposer must acknowledge that he or she has read, understands, and will comply with each section/subsection of this RFP. Section Three of the response shall include the statement: On behalf of the proposer, the undersigned acknowledges that he or she has read, understands, and will comply with each and every term and requirement of the RFP. If the proposer cannot comply with each and every term and requirement, then the proposer shall instead include the statement: On behalf of the proposer, the undersigned acknowledges that he or she has read, understands, and will comply with each and every term and requirement of the RFP, except as follows: After the statement, the proposer shall provide a detailed explanation for any term or requirement that cannot be met. Section Four: Bid Deposit A bid deposit of five percent of the proposed annual lease or license payment must be submitted by cashier s check. The deposit will be applied to the first year s lease rent for the successful proposer. The bid deposit will be returned to proposers that are not selected. If the successful proposer fails to enter into a lease with FRICO then the bid deposit will be non-refundable (except as provided in Section 3.2). FRICO will verify, to its satisfaction, the financial capability of the person or entity seeking lease or license rights, and the legal authority of the person or entity to conduct business in the State of Colorado. The proposal shall include sufficient financial information (in the form of a statement of net worth and/or letters of reference or commitments for financing) or other relevant information that will allow FRICO to fully Page 5 of 11
6 evaluate the proposer's financial ability to construct, operate, and maintain its proposed use. Proposers must disclose past bankruptcy or loan defaults. Prior to making an award, FRICO reserves the right to perform credit checks and to request further information. Section Five: Statement of Qualifications A. Statement of Qualifications, Training, Experience, and Education. Each proposer shall list and describe the qualifications for each general partner or managing entity, and each principal employee who will directly oversee the development, operation and maintenance of the proposed use. Each statement of qualifications must discuss the person's training, experience, or education that relates to the proposed project. In any instance where a proposal indicates that separate legal entities will possess combined management, fiscal, or legal responsibilities, the proposer shall describe the legal relationship among the entities. All legal entities involved, if organized in a manner other than a sole-proprietorship, must be registered in good standing with the Colorado Secretary of State prior to finalizing any award under this RFP. Proposers are encouraged to provide the names and addresses of references. Where the proposer and its affiliates have experience in a project similar to that proposed, the proposer shall describe the prior project, its current status and financial condition. The proposer is encouraged to provide the names, addresses, and telephone numbers of references that have knowledge of the prior project and the proposer's involvement in it. B. Financial Ability and Cash Flow Analysis Include a summary of projected income, costs, and earnings for the first five years of the operation of the proposed use, along with a discussion of the economic assumptions upon which the projections are based. Any information the proposer wishes not be disclosed to third parties must be clearly identified as confidential. Section Six: Description of Proposed Use and Development A. Summary of Proposal The proposer shall provide the following information as a summary of the proposal: Description of proposed use and any related physical improvements; Page 6 of 11
7 Anticipated demand for the proposed project, and the projected market area to be served; Compatibility of the proposed project with surrounding uses, including but not limited to other recreational uses of the Site; An acknowledgment of responsibility for payment of all costs associated with constructing or installing improvements on the Site to support the proposed use. B. Conceptual Plan, Construction, and Operation All proposed buildings, infrastructure, landscaping and other improvements to the Site must be approved by FRICO and conform to all applicable land use regulations. Proposals must also be planned with adequate access, drainage and stormwater management infrastructure so as to meet regulatory requirements. The proposer shall include conceptual plans showing the following: The activities to be conducted The general location and projected scale (i.e., the number of people who will use the site for the proposed uses) of proposed uses; The general location of roads, parking, and campsites, if applicable The general location of hunting blinds, if applicable; The general description of infrastructure to be installed such as water lines, electrical utilities, gray water tanks, if any; The estimated cost of proposed improvements to the Site; and The anticipated schedule for construction of the improvements. Note that all plans, applications, and agreements to be executed or implemented by the successful proposer must be submitted to FRICO for approval before they are submitted (or re-submitted) to the County or other governmental entity for approval. FRICO may impose additional requirements in order to ensure that the project has no impact on reservoir operations. C. Protections, Rules and Regulations The proposal shall include the projected number of people that will be allowed on the site at any given time (e.g., the number of hunters, number of campers, and number of boats), as well as the proposed hours and days of operation for each proposed use. Rules and regulations for each type of use must ultimately be approved by FRICO and implemented by the successful proposer. The proposal shall include a general description of any key rules or regulations that the proposer anticipates will be implemented to protect the Site and the safety of users of the Site. Page 7 of 11
8 A management plan must ultimately be approved by FRICO and implemented by the successful proposer. The proposal shall include a general description of the key elements of the plan, which shall ensure that the Site will be protected from damage, and that Milton Reservoir will be protected from aquatic nuisance species and water quality degradation. Section Seven: Lease Fee The proposal shall include a proposed annual rent (or license fee) for a lease (or license) to conduct the proposed use(s) of the Site. Proposals for multiple uses or a proposal for all potential uses at the Site should include an itemized schedule of the proposed annual fee for each use. The proposal shall include a mechanism to verify market value adjustments based on reappraisal to true up the fee to the market value at 5 year intervals through the initial term. 3.0 TERMS AND CONDITIONS 3.1 Lease or License Format & Terms FRICO will provide a draft lease to the successful proposer based upon the proposed uses of the Site within 15 days of the Notice of Award. Proposer will have 30 days to provide comments on the draft lease to FRICO and an additional 15 days to execute the lease. The lease or license to the successful Proposer will at a minimum generally include language containing the following terms: A. An initial term of 10 to 15 years with option for an additional 10 years B. Annual lease or license fee payment C. Consumer Price Index adjustment to the annual lease or license fee payment, evaluated every 5 years D. Authorized uses under the lease or license E. Process for approvals for construction on the Site F. Designation of entrances and authorized roads on the Site G. Priority of reservoir operations H. Assumption of risk and indemnification of FRICO by lessee or licensee I. Commercial general liability insurance policy of at least $2,000, J. Cause for default and notice / ability to cure K. Cause for termination of lease or license L. Water quality disclosure and waiver M. Protection from aquatic nuisance species N. Reservation of limited recreation rights to FRICO FRICO expressly reserves the right to include additional terms and conditions based upon the proposed uses for the Site in the successful proposal. Page 8 of 11
9 3.2 Weld County Approvals Proposed uses and development may require approval through a Use by Special Review process with Weld County. This requirement may delay or halt lease or license execution. If the proposed uses are not approved by Weld County, the bid deposit will be refunded to the proposer. 3.3 Contract Execution A lease or license will be offered to the selected proposer if it is in the best interest of FRICO and if the proposed uses are not rejected by Weld County per Section 3.2. If FRICO is not able to negotiate a lease or license with the successful Proposer within 60 days after the notice of award, FRICO may terminate negotiations with the proposer and commence negotiations with another proposer, or reject all proposals, in FRICO s sole discretion. More time may be allowed for due diligence at the discretion of FRICO. 3.4 FRICO s Rights Reserved FRICO may reject any and all proposals if, in its discretion, it determines that none of the proposals is in the best interest of FRICO and its stockholders. FRICO may re-offer the site for lease or license if the proposals that are received are not acceptable to FRICO. 3.5 Limitations The use of the Site must not reduce its value Storage of any toxic or hazardous substances will not be allowed without the written consent of FRICO. Disposal of toxic or hazardous substances will not be allowed on the Site The use of the Site must comply with state, federal, and local laws and regulations. It is the sole responsibility of the proposer to ensure that the proposed use meets applicable legal requirements The successful proposer will be solely responsible for all costs to be incurred in the design, development, construction, operation, maintenance, repair, replacement, and removal, as appropriate, of all improvements upon the Site in support of the proposed use FRICO will not be liable for any costs incurred by the successful proposer or any other proposer in the preparation of any proposal, negotiation for lease or license, or procurement of financing for any portion of the proposal, lease, or license. Page 9 of 11
10 The successful proposer will be solely responsible for all design, installation, and construction of infrastructure and improvements, such as roads, parks, campsites, or utilities, if they are required by a local government as a condition of development If Site development results in excess native materials (topsoil, fill dirt, trees, etc.), FRICO may within the terms of the lease agreement: 1) reserve those materials and require transport of materials to a designated stockpile area on nearby FRICO property; 2) establish a market price and sell the material to the developer/contractor for use elsewhere, or 3) require developer to remove the material for off-site disposal The successful proposer will be responsible for the payment of all taxes, assessments, levies, fees, or other charges assessed upon the property owned by FRICO as a result of the proposed uses Any proposal not meeting these limitations or other criteria set out in this offering will be rejected at the discretion of FRICO FRICO reserves the right to waive technical defects in this RFP Upon expiration or cancellation of the lease or license, the title to all improvements and fixtures located on the Site and used in the operation and maintenance of the proposed use shall, at FRICO s discretion, vest in FRICO. The lease or license must describe in detail the manner and subject matter of the transfer to FRICO FRICO may require the successful proposer, at the expiration of the lease or license, to remove and or reclaim improvements constructed on the Site during the term of the lease or license, at the expense of the successful proposer FRICO may require security to ensure that the uses will be conducted as proposed with no harm to the financial or property interests of FRICO FRICO reserves the right to request additional information and data from the proposer to ascertain proposer s capabilities and desire to develop the Site. Any request for information by FRICO to the proposer is solely for the purpose of selecting a proposal and understanding its terms. Such a request shall not be considered to constitute a binding agreement or commitment by FRICO in any manner. Page 10 of 11
11 3.6 Costs of Preparing Proposal It is the responsibility of the successful proposer to finance, or obtain private financing for all costs associated with the design, construction and operation of the proposed uses. The proposer assumes the risk of loss in the submission of any proposal and in the operation of any proposed use. FRICO is not liable for any costs or consequential damages incurred by proposers in proposal preparation, negotiations, or any other costs that may result from activities in connection with this RFP. Page 11 of 11
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