QandA Ver1_Updated_Bagby.pdf

Prospectus for Campground and Related Granger-Thye Concessions, Mt. Hood National Forest, Bagby Hot Springs and Campground

Version 1 (07/30/2021)

Questions with Answers for the Prospectus Offering

Q: How does new Executive Order (EO) 14026 on the minimum wage for federal contractors affect applicants responding to a prospectus?

A: The minimum wage for federal contractors established by the new EO has not yet become effective.

Pending the effective date of the new minimum wage for federal contractors, applicants for a campground concession permit should base their projected labor expenses on the existing applicable minimum wage for federal contractors or the minimum wage that applies in the state where the concession is located, whichever is higher.

The Forest Service will provide guidance on implementation of the new minimum wage for federal contractors once the U.S. Department of Labor issues a final rule implementing the executive order.

For more information on EO 14026: https://www.whitehouse.gov/briefing-room/presidential-actions/2021/04/27/executive-order-on-increasing-the-minimum-wage-for-federal-contractors/

Q: How does EO 14026 affect evaluation of applications submitted in response to a prospectus?

A: Although wage rates are not a specific evaluation criterion, the Agency expects applicants to base information in their application on the existing applicable minimum wage for federal contractors or the minimum wage that applies in the state where the concession is located, whichever is higher.

The Forest Service will provide guidance on implementation of the minimum wage for federal contractors once the U.S. Department of Labor issues a final rule implementing the new EO.

For more information on EO 14026, see https://www.whitehouse.gov/briefing-room/presidential-actions/2021/04/27/executive-order-on-increasing-the-minimum-wage-for-federal-contractors/.

Q: What is the current direction for how to implement Consolidated Fee Payments?

A: Consolidated fee payments are addressed in the prospectus document, form FS-2700-34:

“ <GT Fee Offset Work That Costs More Than the Amount of the Annual Land Use Fee. One way to maximize the amount of the land use fee available for offset is to group multiple sites under one permit.

Another way to accomplish a large project is to consolidate land use fee payments for up to 5 years. The consolidated land use fee will be determined by converting the annual land use fee proposed by the holder to a flat amount, and multiplying it by the number of years the consolidated land use fee payment will cover. To compute the flat fee, determine the average land use fee for the concession for the last 3 years.

Multiply the average fee (adjusted, if necessary, based on expansion or contraction of the concession) by the number of years (not to exceed 5) that the land use fee will be consolidated. Consolidated land use fee payments must be negotiated after an applicant is selected, rather than required, unless land use fees are consolidated to pay for GT fee offset work that costs more than $250,000, as discussed below.>

<Increased Permit Term for Construction That Costs More Than $250,000. When a government-owned concession facility needs reconstruction or improvement that costs more than $250,000 and a https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.whitehouse.gov%2Fbriefing-room%2Fpresidential-actions%2F2021%2F04%2F27%2Fexecutive-order-on-increasing-the-minimum-wage-for-federal-contractors%2F&data=04%7C01%7C%7C033a1f7cd4d7452ed26908d93677e363%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C637600710812438686%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=bFYZonqZDPDgY4%2F9H6bGxuMHwJ5jGVeb38ge5UFczvY%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.whitehouse.gov%2Fbriefing-room%2Fpresidential-actions%2F2021%2F04%2F27%2Fexecutive-order-on-increasing-the-minimum-wage-for-federal-contractors%2F&data=04%7C01%7C%7C033a1f7cd4d7452ed26908d93677e363%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C637600710812438686%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=bFYZonqZDPDgY4%2F9H6bGxuMHwJ5jGVeb38ge5UFczvY%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.whitehouse.gov%2Fbriefing-room%2Fpresidential-actions%2F2021%2F04%2F27%2Fexecutive-order-on-increasing-the-minimum-wage-for-federal-contractors%2F&data=04%7C01%7C%7C033a1f7cd4d7452ed26908d93677e363%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C637600710812438686%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=bFYZonqZDPDgY4%2F9H6bGxuMHwJ5jGVeb38ge5UFczvY%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.whitehouse.gov%2Fbriefing-room%2Fpresidential-actions%2F2021%2F04%2F27%2Fexecutive-order-on-increasing-the-minimum-wage-for-federal-contractors%2F&data=04%7C01%7C%7C033a1f7cd4d7452ed26908d93677e363%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C637600710812438686%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=bFYZonqZDPDgY4%2F9H6bGxuMHwJ5jGVeb38ge5UFczvY%3D&reserved=0

Prospectus for Campground and Related Granger-Thye Concessions, Mt. Hood National Forest, Bagby Hot Springs and consolidated fee payment of more than 5 years is needed to finance the project, a 10-year term, with the option to extend the term an additional 5 years based on satisfactory performance, may be offered. The extended term must be offered competitively, and a minimum consolidated fee payment of $250,000 must be required. This option should not be used for concession offerings that historically have fees that are insufficient to cover the construction cost even when consolidated or that have no revenue history.>”

“Optional Consolidated Land Use Fee Payment. Applicants may propose a consolidated fee payment for up to 5 years during the initial permit term or extension of the term to finance a GT fee offset project.

The consolidated land use fee payment will be determined by multiplying the average annual gross revenue of the offering for the past 3 years (adjusted, if applicable, based on expansion or contraction of the concession) by the number of years the land use fee payments will be consolidated, and multiplying the product by the percentage of gross revenue proposed by the applicant. If the Forest Service will perform the GT fee offset work using a collection agreement, the entire consolidated land use fee payment must be made when the first land use fee payment otherwise would have been due. If the holder will perform the GT fee offset work, the holder must commence that work within the first 6 months of the consolidated fee period and must complete the work within 18 months of the beginning of the consolidated fee period. The consolidated land use fee payment will not be reconciled based on actual gross revenues.”

Q: Which pass discounts are concessionaires required to honor?

A: Per form FS-2700-34 and Forest Service Manual (FSM) 2340, Agency policy is to offer 50% discounts to Senior and Access pass holders for single occupancy campsites, regardless of operator (Concession or Agency). Please see section II. B. Pass Discounts in the prospectus document for further details.

Q: Is there a focus on site preservation: does the Forest Service want to keep all buildings?

Could cabins be removed?

A: The Bagby Guard Station and outbuilding are historic properties, listed on the National Register of Historic Places. These are the only two structures at Bagby Hot Springs that retain significant historical value. Appropriate management uses for historic properties are those that preserve and protect those attributes that make them historically, architecturally, or culturally significant and that maximize their agency and public benefit (FSH 2309.12 34.1, 34.3).

Removal of the cabin and outbuilding would constitute an extraordinary circumstance and require additional analysis outside the scope of the proposed permitting process.

Q: Is it possible to make changes to historical buildings?

A: Yes, however, all proposed changes will need to be analyzed and approved by the Forest Service. Proposed changes will require review under Section 106 of the National Historic Preservation Act (NHPA), which requires each federal agency to identify and assess the effects its actions may have on historic buildings.

Stabilization, rehabilitation, restoration, interpretation, and adaptive use are all strategies available for preservation and protection of historic properties. The Department of Interior provides guidelines to federal agencies and their partners on implementing these strategies in a

Prospectus for Campground and Related Granger-Thye Concessions, Mt. Hood National Forest, Bagby Hot Springs and way that is consistent with the requirements of the National Historic Preservation Act (https://www.nps.gov/tps/standards/four-treatments.htm).

Q: There appears to be contradictory information on the historic shed; does the forest interested in demolition or preservation?

A: From a Heritage Management perspective, preservation of both structures would be most desirable. However, Heritage is only one of many resource and management concerns related to the Bagby Hot Springs area. Certain proposals may outline a long-term management strategy of the area that enhances, preserves, and protects those aspects of the historic property through preservation of the Guard Station alone. This would require the same analysis and review by the Forest Service as outline in Question Two.

Q: Why did the Forest Service decide to make this offering a resort permit since Bagby Hot Springs and Campground have been managed as part of a larger campground concession?

A: The results of the Bagby Hot Springs and Campground Request for Expressions of Interest indicated that there was viable, competitive interest in operating the site as a standalone. Though this site has been part of a campground concession, the dominant use is soaking in the tubs filled with hot spring water rather than simply camping. The resort use code was chosen because it fit well with the predominant use and also offered a 20-year term length allowing a concessionaire ample time to recoup financial investments in the site.

Q: Has there been a hazard/risk analysis associated with converting the pit toilets to composting toilets in the hot springs area? Will there be a way to separate liquid and solid waste? Will these toilets be accessible according to American’s with Disability Act (ADA) guidance?

A: Forest staff have researched and analyzed the use of composting toilets for several sites on the forest. The toilets to be installed at Bagby Hot Springs will separate urine from solid waste at the source, divert it and allow it to be treated onsite. Solid waste will decompose on site and/or be stored in bags for removal at infrequent intervals.

The toilets are be accessible according to ADA guidance.

Q: Will the Forest maintain the toilets at the hot springs? Will the toilets be replaced during the contract with current concessionaire or wait until next contract?

A: Routine maintenance is completed by the concessionaire under the special use authorization.

The current pit toilets are scheduled to be replace in fall 2021 with composting type toilets.

Q: What is the difference between maintenance that is the responsibility of the permit holder and maintenance that is the responsibility of the Forest Service?

https://www.nps.gov/tps/standards/four-treatments.htm

Prospectus for Campground and Related Granger-Thye Concessions, Mt. Hood National Forest, Bagby Hot Springs and

A: From Forest Service Handbook (FSH) 2709.11, Chapter 50:

“(d) Holder Maintenance, Reconditioning, or Renovation. Maintenance, reconditioning, or renovation (MRR) that neither materially adds to the value of the property nor appreciably prolongs its life and that serves only to keep the facility in an ordinary, efficient operating condition, such as, from an accounting or tax perspective, work that may be expensed, but not capitalized, including but not limited to interior decorating, interior painting, vandalism repair, repair of broken windows, light bulb replacement, cleaning, unplugging drains, drive belt replacement, preventive maintenance, lubrication of motors, greasing, servicing, inspecting, oiling, adjusting, tightening, aligning, watering, weeding, sweeping, waxing, refinishing picnic tables, routine housekeeping, and general snow removal.

(e) Government Maintenance, Reconditioning, Renovation, or Improvement. Maintenance reconditioning, renovation, or improvement (MRRI) that arrests deterioration, improves and upgrades facilities, and appreciably prolongs the life of the property, including but not limited to installing a new roof, new floor, or new siding; rebuilding boilers; replacing pipes, pumps, and motors; repairing or maintaining the paths, lands, walks, walls, or landscaping adjacent to other federally owned structures; replacing vault toilets with flush facilities, paving interior roads, upgrading facilities, and installing utilities; and performing exterior painting and refinishing (other than repair of unsightly visual marks caused by everyday use) and that is performed at the sole discretion of the Authorized Officer.”

Q: How does the fee offset work under the Granger-Thye Act work?

A: There are two options: Holder-performed fee offset work and Forest Service or Forest Service contractor performed work paid for by the holder. From FSH 2709.11, Chapter 50:

“E. HOLDER-PERFORMED FEE OFFSET WORK

1. Work in Lieu of Cash Payments. Notwithstanding clauses VI.A and C, the cost of work performed by the holder pursuant to a Granger-Thye fee offset agreement as provided in clause VI.D.2 may be credited in lieu of cash payments against the annual permit fee, provided that the work has been accomplished in accordance with the Granger-Thye fee offset agreement and has been accepted as completed by the Forest Service before the end of the holder’s fiscal year. In the absence of an approved fee offset agreement, payment shall be made in accordance with clauses VI.A and C.

2. Documentation of Expenses. Prior to reimbursement or credit for Granger-Thye fee-offset work, the holder shall submit sufficient documentation to allow the Authorized Officer to determine that the costs claimed are allocable to the Granger-Thye fee offset agreement, actual, reasonable, and not unallowable.

3. Final Payment. The Forest Service shall reconcile annually the actual permit fee against permit fee payments made and credit given by the Forest Service for fee offset work. The holder shall pay any additional fees owed for the past year’s operations within 30 days of billing.

4. Overpayment. Overpayment of the permit fee will be reimbursed by the Forest Service only if paid pursuant to clause VI.A. Credit for offset work pursuant to clause VI.D.2 is limited to the amount of the annual permit fee; expenses will not be reimbursed if they are greater than the annual permit fee.”

Prospectus for Campground and Related Granger-Thye Concessions, Mt. Hood National Forest, Bagby Hot Springs and

Also from FSH 2709.11, Chapter 50 related to work performed by the Forest Service or Forest Service contractor and paid for by the permit holder:

“2. Granger-Thye Fee Offset Agreement. The Forest Service and the holder shall enter into a Granger-Thye fee offset agreement that specifies the government maintenance, reconditioning, renovation and improvement (MRRI) to be used to offset the permit fee. The agreement shall specify that the Forest Service will perform the work or contract with a third party to perform the work. The agreement shall specify which projects are to be used for offset each year.

3. Payments. The holder shall deposit permit fee payments [annually or quarterly] into a cooperative account. All deposits shall be retained by the Forest Service until expended or, if unutilized in 5 years, shall be deposited into the U.S. Treasury.”

The work to be performed is developed in collaboration and agreed to at a meeting between the Forest Service and the concessionaire prior to the work beginning each fiscal year.

Please see pages 13 and 14 of the prospectus.

Q: Do contractors who perform work on the site improvements need to be licensed?

A: Yes.

Q: Is there conflict when concessionaires are contractors?

A: If the concessionaire proposes to do maintenance and/or construction work on the improvements under permit, they need to hire licensed contractors. If they or their employees are licensed contractors, they can be approved to complete the work.

Q: Are concessionaires responsible for all costs from contractors?

A: If the holder performs the work or contracts the work to be completed, yes, they are responsible for all contractor-related costs.

Q: Where does the money come from to complete the work?

A: Annual land use fees, owed by the concessionaire for operating the site, are used to invest in the facility.

Q: Are concessionaire fees based on revenue?

A: Yes, the fee to the government is a percentage of adjusted gross revenue proposed by the applicant (see page 21 of the prospectus).

Q: Can individuals submit applications to maintain and operate the site or does it have to be a group.

Prospectus for Campground and Related Granger-Thye Concessions, Mt. Hood National Forest, Bagby Hot Springs and

A: Except for members of Congress, Resident Commissioners, and current Forest Service employees, any individual or entity may apply. All applicants have an equal opportunity to apply.

Q: How will the Forest Service ensure fees associated with use of the site remain within reach for people of all economic groups?

A: Fees associated with use of the site are proposed by the applicant and evaluated as part of the overall application package. However, the Forest Service reserves the right to regulate the rates charged to the public. Please see Section C.4. Fees Charged to the Public, page 20 of the prospectus.

Q: Will camping be allowed in the hot springs area?

A: The Forest Service may consider proposals for uses in the hot springs area that include overnight opportunities as long as they align with the historic nature of the hot springs.

Q: Is there ability to use electric quad or other motorized vehicle for bringing material in?

A: The current concessionaire has written approval to use a small ATV and a trailer to move materials and supplies between the trailhead area and hot springs. The forest would likely continue to approve this sort of use to complete maintenance and upgrades in the hot springs area so long as there are no long-term resource impacts.

Q: What does the Forest Service think of private soaking stalls?

A: The Forest Service doesn’t have a preference for the type of soaking experience (group or private) offered by the concessionaire at the hot springs.

Q: Is there a better route for maintenance rather than the trail? Could a reroute be made or proposed?

A: The trail from the parking area into the hot springs area is the only developed route between the parking area and the hot springs and it is bounded by Congressionally designated Wilderness on either side. It is highly unlikely an alternate route would be approved for use or constructed.

Q: Can concessionaires reuse salvageable wood from the bath houses (2 and 3)?

A: With prior approval from the authorized officer, salvageable materials from the bathhouse and other improvements may be reused.

Q: What things does Forest Service want to move forward with the concessionaire?

A: The Forest Service wants the facilities and amenities at Bagby Campground and Hot Springs to provide safe and high-quality recreation opportunities and experiences for the visiting public.

Prospectus for Campground and Related Granger-Thye Concessions, Mt. Hood National Forest, Bagby Hot Springs and

Q: When will Bagby open again? Will buildings be closed up and locked to avoid further damage?

A: At this time, it is unknown when the campground and hot springs will re-open. When the Oregon Department of Transportation has completed hazard tree removal, the forest will re-evaluate the Highway 224 closure. When it is safe to access the site, Forest staff will work with the current concessionaire to re-open the site to the public.

Q: Will it be possible for concessionaire to use available material in the area? Such as logs, etc. Is it possible to use salvageable material from bathhouse #2 since it is no longer usable?

A: Use of on-site materials, such as standing trees, is unlikely. There may be opportunities to use down trees with authorized officer approval.

It may be possible to use salvageable material from bathhouse #2 with authorized officer approval.

Q: Can concessioner take out resources to build necessary parts and bring them back (i.e., can a timber guild take wood from Bagby to their shop to build necessary structures for the site)?

A: It may be possible to use materials collected on site to build amenities in another location and return those amenities to the site.

Q: Could construction begin before the new permit term begins?

A: The current permit expires 12/31/2022. Any proposed construction prior to that date would need to be approved by the Forest Service and agreed to and coordinated with the current concessionaire.

Q: Would it be possible to replace the current tubs (in particular, the single tubs) and add more waiting areas or expand current waiting areas.

A: Proposals to modify existing structures and amenities would need to be analyzed under National Environmental Policy Act and receive approval from the authorized officer.

Q: Are there any plans make improvements along Highway 224 to protect the area against mudslides, future wildland fires, etc.? If the Forest is closed how will that affect concessionaire revenue?

A: The Forest Service is not aware of any specific plans to address potential natural events. If the area is closed, it is likely concessionaire revenue will be impacted negatively. Potential applicants may want to consider obtaining loss of business insurance.

Prospectus for Campground and Related Granger-Thye Concessions, Mt. Hood National Forest, Bagby Hot Springs and

Q: Is the parking lot open to possible expansion for camping spots?

A: Any proposal to construction camping sites in the trailhead parking area would need to be analyzed under NEPA guidelines and approved by the authorized officer.

Q: Are campground fees included in the revenue?

A: The fee revenue provided in the prospectus (page 1) only includes day use revenue. Fees associated with overnight campground use were not reported separately for 2017 – 2019.

Q: Is adherence to ADA guidelines a requirement in design process for site and buildings?

A: Any Government maintenance, reconditioning, renovation, or improvement must meet ADA/Architectural Barriers Act Accessibility Guidelines, where applicable, as well as the Forest Service Outdoor Recreation Accessibility Guidelines.