New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 5 - STATE PARKS AND RECREATION › Part 5 - CONCESSION ACTIVITIES › Section 19.5.5.10 - CONCESSION CONTRACT PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Following a proposal's acceptance, the division shall enter
				  into negotiations with the successful offeror for a concession contract to
				  operate the concession or with a concessionaire to amend an existing concession
				  contract. To the extent 19.5.5.10 NMAC contradicts an existing concession
				  contract in effect on May 15, 1997, 19.5.5.10 NMAC shall not apply to those
				  contracts unless they are renegotiated or amended. The concession contract's
				  provisions shall be consistent with the following requirements.
A. The concession contract's term shall be
				limited to the shortest period possible and the term shall not exceed five
				years unless justified by at least the following: the amount of a
				concessionaire's investment, the capital improvements made or to be made on the
				premises and the types of services offered. Under no circumstances shall the
				concession contract's term exceed 30 years. The division may terminate the
				concession contract for the concessionaire's noncompliance with the concession
				contract or 19.5.5 NMAC, or if the division's lease or other agreement with the
				landowner (
e.g.
United States department of the interior,
				bureau of reclamation) from which the division leases the land or reservoir
				terminates.
B. Each concession
				contract shall include a legal description or a detailed map that defines the
				area in which the concession will operate.
C. A concession contract is subject to
				limitations applicable federal and state agencies place on the division. The
				division reserves the right to install park facilities and utilities and to use
				the park for authorized purposes. The division reserves the right to close the
				park or the concessionaire's operations for reasonable law enforcement or
				safety purposes.
D. A concession
				contract shall require the concessionaire to pay the division a monthly
				concession fee, based on a flat fee or a percentage of the concessionaire's net
				receipts from sales and services. The concessionaire shall submit the
				concession fee and a monthly report detailing net receipts from sales and
				services on a division provided form to the concessions administrator at the
				division office in Santa Fe. The concession fee and monthly report shall be
				postmarked no later than 5:00 p.m. on the 25th day of the month after the
				reporting month, unless the 25th falls on a Saturday, Sunday or
				state-recognized holiday in which case the concession fee and monthly report
				shall be postmarked no later than 5:00 p.m. of the next business day. The
				concessionaire's failure to submit the concession fee and monthly report shall
				result in a penalty fee of 10 percent of the concession fee for the month that
				is late or $50.00, whichever is greater.
E. The concession contract shall include a
				schedule for construction. If the schedule for construction includes
				improvements to publicly owned property, the division may authorize the
				concessionaire in writing to expend a percentage of amounts due the division in
				lieu of remitting them to the division for construction and alterations to
				publicly owned property to benefit the park. Improvements shall be consistent
				with the park management and development plan and the concessionaire shall
				obtain the division's, and if applicable the landowner's, prior approval for
				the improvements.
F. The concession
				contract shall require the concessionaire to have liability insurance naming
				the state of New Mexico, the department and the division, and if applicable the
				landowner from which the division leases the land or reservoir, as co-insured,
				and indemnifying the state of New Mexico, the department and the division, and
				if applicable the landowner from which the division leases the land or
				reservoir, for public liability, personal injury and property damage in amount
				equal to or greater than the liability limits set forth in NMSA 1978, Section
				41-4-19, as it
				may be amended from time to time along with worker's compensation insurance, if
				applicable, prior to taking control of the concession premises.
G. The concession contract shall require the
				concessionaire, prior to taking control of the concession premises, to have the
				greater of:
(1) financial assurance
				satisfactory to the division conditioned upon the faithful performance of the
				concession contract in a minimum amount of 10 percent of the gross receipts
				from sales and services for the prior year; or
(2) financial assurance satisfactory to the
				division conditioned upon the faithful performance of the concession contract
				in a minimum amount of $5,000 annually, by performance bond or irrevocable
				letter of credit; if the receipts are anticipated to be less than $50,000, the
				division shall consider the concession operation's size and nature and may
				reduce the financial assurance amount.