NGMA
Response to Questions from proposers
#1
1. Please clarify if the 12 page maximum for Tab 2 includes the financial statements, or if these may be
supplied in addition to the 12 pages of content.
The 12 page maximum does not apply to the financial statements.
2. Please advise if the 25 page maximum for Tab 4 applies to the proforma schedules, or if they are
exempt from the page count restrictions.
The 25 page maximum does not apply to the proforma schedules.
3. Could you please identify the major feeder markets for each of the six locations?
The NGMA does not have specific information on feeder markets for the six locations. Experience tells
us that the primary feeder market is metro Atlanta and within a 75 mile radius of each location.
4. Is there an advertising agency that has been retained to work with the six hotels, or individually? If so,
who is/was the company?
No.
5. Could you please provide an outline of the current portfolio management organization a. Organizational chart for regional support of operations, sales and marketing, revenue
management, reservations, golf, and other support areas.
b. An organizational chart for each location.
The NGMA does not have this information. Site location org charts have been requested from the
current operator and will be posted when received.
6. Are all of the personnel that are listed in regional offices charged back to the portfolio operation or
NGMA?
Yes – to the operations.
7. How are reservations taken for all hotels & activities?
On line or direct to the site.
8. Is there a current reservation call center that is being used, if so, who is it?
No
9. What is the current cost per reservation?
The NGMA does not have information related to the cost per reservation.
10. Is the regional office that is located in Alpharetta, GA, charged back to the portfolio or NGMA?
Regional sales office expenses are allocated to each site and are charged to the monthly operating
budget of the site as a marketing expense.
11. Who holds the lease on the current regional offices and is it transferable?
The NGMA does not have information on the rental status of the regional office.
12. Are there any exclusions that would prevent a new operator to hire any and all existing staff members
throughout the portfolio operation?
No
13. What is the current agreement as to how management fees are structured? Is it different per
location? Is it all base fees or a combined based and incentive?
Management fees are identified in the current management agreement that was provided. Current
fee is 3.5% of gross revenues. The NGMA also pays a monthly fixed amount at some of the sites to
cover the expenses of managing the non-revenue producing assets. There is not an incentive based
fee.
14. Does the current operator receive any other remuneration for other services or expenses outside of
management fees for management of the portfolio assets?
Yes – the current contract allows for reimbursable expenses. These are approved in the annual budget
process.
15. Are there fees or expenses that are charged from NGMA to the portfolio operation? If so, can you
provide a brief description?
No fees or expenses are charged from NGMA.
16. Are there any major vendor contracts or agreements that are currently in place and that a new
operator would be bound to? If yes, what are they?
Yes, the state has a contract with Coca Cola and some telecommunications services are provided via
state contract.
17. What current programs exist at each of the locations for measuring guest satisfaction?
Written and on line feedback forms.
18. If there is a measurement program in place, may we have 2014 results by property?
The NGMA will request this information from the current operator.
19. What was the source of funding for Phase 1 renovation?
Taxable General Obligation Bonds issued by the State of Georgia.
20. Has Phase 2 funding been acquired, and what is source of funding?
No, the NGMA has requested Phase 2 funding. The funding source, which is not determined by the
NGMA, has not been determined.
21. Has funding been acquired for the proposed energy management system? If so, what is source of
funding?
No funding has been acquired. The program is designed to be funded from third party lenders.
22. Other than Phase 2 & Energy program, are there other major capital project(s) (similar to the size of
Phase 1 & 2) that current management or NGMA are considering or desire?
None planned. The NGMA will continue to explore long term options for new hotel rooms at Unicoi
State Park.
23. Are there formally arranged meetings between the current management operator and NGMA? If so,
what is frequency?
Not currently.
24. Please clarify sections 2.2 and 5.4 that state the operator will bear the cost of employee expenses. It
reads as though the cost for all hourly and salaried staff that work at the properties will need to be
built in to the Fee proposed to NGMA.
The proposed fee should not include any expenses for employee expenses. Employee expenses are
funded by the operations budget. The draft QMA may have included language that was used in
previous contracts at other state owned facilities. The NGMA apologizes for any confusion.