2003-25260 ResoRESOLUTION NO. 2003-25260
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER AND APPROVING THE SELECTION OF SMG, AS
THE SUCCESSFUL PROPOSER PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 33-02~03, AND FURTHER AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH SMG,
SUBJECT TO SUBMISSION OF A FIVE YEAR OPERATIONAL,
MARKETING AND BUDGETARY PLAN, FOR THE MANAGEMENT AND
OPERATION OF THE MIAMI BEACH CONVENTION CENTER, THE
JACKIE GLEASON THEATER OF PERFORMING ARTS, AND OTHER
FACILITIES.
WHEREAS, on July 15, 1998, the Mayor and City Commission adopted Resolution
No. 98-22850, which authorized execution of an Agreement with SMG for the
management and operation of the Miami Beach Convention Center (MBCC) and Jackie
Gleason Theater of the Performing Arts (TOPA) for three (3) years, with two (2) one-
year renewals; and
WHEREAS, on September 5, 2001, the Mayor and City Commission adopted
Resolution No. 2001-24573, which approved the two (2) one-year renewal terms which
will expire on September 30, 2003; and
WHEREAS, on October 25, 2002, the Finance and Citywide Projects Committee
convened and recommended the Administration issue a Request for Proposals (RFP)
seeking qualified firms for the management and operation of the MBCC and TOPA; and
WHEREAS, on January 8, 2003, the Mayor and City Commission adopted
Resolution No. 2003-25107, which authorized the issuance of an RFP for the
management and operation of MBCC and TOPA, as well as other City cultural facilities
to include, but not limited to, the Byron-Carlyle Theater, the Acorn Theater, the
bandshell and/or the Colony Theater; and
WHEREAS, RFP No. 33-02/03 was issued on February 24, 2003 with an opening
date of February March 21, 2003, which was subsequently changed to March 28, 2003
as a result of questions and requests for additional information from interested
proposers; and
WHEREAS, on March 28, 2003, the City received two (2) proposals from Waterford
Hotel Group, Inc. and SMG, respectively; and
WHEREAS, after reviewing both proposals, the Administration in consultation with
the City Attorney's Office, determined that Waterford's proposal was non-responsive
based on the following:
1. No audited financial statements were submitted as required by Section III B(a)
through (e) of the RFP;
2. No resumes for its key personnel were submitted as required by Section III B(8)
of the RFP;
3~ No credit report or credit history letters from financial institutions were submitted
as required by Section III B(10)(g) and (h); and
4. No public entity crime form was submitted as required by Section III A(5) of the
RFP; and
WHEREAS, the City Manager, via Letter to Commission (LTC) No. 88-2003,
appointed an Evaluation Committee ("the Committee") to review the SMG proposal,
consisting of the following individuals:
· Eva Barreto, Miami Beach Chamber of Commerce
· Stu Blumberg, President, Greater Miami & the Beaches Hotel Association
· Mayra Diaz Buttacavoli, Assistant City Manager
· Pablo Cejas, Lincoln Road Property Owner
· Joe Fontana, Convention Center Advisory Board Member
· Nancy Wolcott, Cultural Arts Council
· Trish Walker, Chief Financial Officer
· Eugene Woodard, Budget Advisory Committee
· Donna Shaw, Director of Tourism and Cultural Development; and
WHEREAS, on June 18, 2003, the Committee convened (Trish Walker and
Nancy Wolcott were unable to participate due to prior obligations) and was provided
with the following information:
1. Cone of Silence, Government in the Sunshine Law, and evaluation criteria by
Gus Lopez, Procurement Director; and
2. Project overview, background information, and scope of services by Christina
Cuervo, Assistant City Manager; and
WHEREAS, after SMG's presentation, the Committee conducted a thorough
question and answer session, which lasted more than one-hour, stressed the
importance of the contract negotiations and the need to focus on enhanced and
integrated marketing efforts, utilizing best practices from other markets, targeted and
enhanced sales efforts, based audience development assessments and market
research, greater oversight, direction and focus on quality in the food and beverage
operations provided by Centerplate and an aggressive competitive approach to
attract new bookings; and
WHEREAS, from the perspective of the Jackie Gleason Theater operations, the
Committee emphasized the need to collaborate and meet with the Performing Arts
Center Institute (PACI) to compliment facility bookings; and
WHEREAS, following the conclusion of the question and answer session the
Committee scored SMG's proposal, and recommended the following:
1. SMG as the successful proposer;
2. That prior to any contractual negotiations with SMG, a five-year plan be
completed with an operational and budget component for both MBCC and
TOPA;
3. That the incentive fee portion be subject to annual review and may be
renegotiated by mutual agreement;
4. That the one-time contribution of $400,000 be amortized over the term of the
contract rather than the 15-year period that was proposed by SMG; and
WHEREAS, the City Manager has reviewed the Evaluation Committee's
findings, as well as conducted his own independent review of the SMG proposal,
and concurs with the recommendation of the Evaluation Committee relative to the
selection of SMG as the successful proposer, pursuant to RFP No. 33-02/03.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
City Commission accept the recommendation of the City Manager and herein
approve the selection of SMG, as the successful proposer pursuant to RFP No. 33-
02/03, and further authorize the Administration to enter into negotiations with SMG
for the management and operation of the Miami Beach Convention Center, the
Jackie Gieason Theater of the Performing Arts, and other Facilities.
PASSED and ADOPTED this 2aa day of Jul7
,2003.
ATTEST:
CITY CLERK
4AYOR
T:~AGEN DA~2003\jul0203~'egular\SMG. Reso. Final.doc
N=PROVEO AS TO
FORM & LANGUAGE
& FOR EXECUTION
v/ ~R~ Attome~"~ Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution accepting the recommendation of the City Manager and approving the selection of SMG, as
the successful proposer pursuant to Request for Proposals (RFP) No. 33-02/03, and further authorizing the
Administration to enter into negotiations with SMG, subject to submission of a five year operational,
marketing and budgetary plan, for the Management and Operation of the Miami Beach Convention Center,
the Jack e Gleason Theater of Performin~l Arts, and other facilities.
Issue:
Shall the City Commission authorize the Administration to negotiate with SMG, the sole responsive bidder,
and SMG for the Management and Operation of the Miami Beach Convention Center, the Jackie Gleason
Theater of the Performing Arts, and other facilities?
Item Summary/Recommendation:
The Administration recommends that the Mayor and City Commission adopt the attached resolution which
accepts the City Manager's recommendation, and authorizes the Administration to enter into negotiations
with SMG for the Management and Operation of the Miami Beach Convention Center, the Jackie Gleason
Theater of the Performincj Arts, and other facilities.
Advisory Board Recommendation:
On October 25, 2002 the Finance and Citywide Projects Committee recommended the Administration
issue a Request for Proposals.
On August 27, 2002 and November 19, 2002, the Convention Center Advisory Board adopted motions
recommending that the City negotiate with SMG.
Financial Information:
Funds:
2
Finance Dept. Totai
city Clerk's Office Legislative Tracking:
Christina M. Cuervo
Sign-Offs:
City M~ge~~
[ DePartment Direct0, ~ist~ht C,~ Manager ..
I
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.rniarnibeachfl.gov
COMMISSION MEMORANDUM
To'.
From:
Subject:
Mayor David Dermer and Date: July 2, 2003
Members of the City Commission
M. Gonzalez ~
Jorge
City Manager
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER AND APPROVING THE
SELECTION OF SMG, AS THE SUCCESSFUL PROPOSER
PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 33-02~03,
AND FURTHER AUTHORIZING THE ADMINISTRATION TO ENTER
INTO NEGOTIATIONS WITH SMG, SUBJECT TO SUBMISSION OF A
FIVE YEAR OPERATIONAL, MARKETING AND BUDGETARY PLAN,
FOR THE MANAGEMENT AND OPERATION OF THE MIAMI BEACH
CONVENTION CENTER, THE JACKIE GLEASON THEATER OF
PERFORMING ARTS, AND OTHER FACILITIES.
ADMINISTRATIVE RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On July 15, 1998, the Mayor and City Commission adopted Resolution No. 98-22850,
which authorized execution of an Agreement with SMG for three (3) years with two (2)
one-year renewals.
On September 5, 2001, the Mayor and City Commission adopted Resolution No. 2001-
24573, which approved two (2) one-year extensions which will expire on September 30,
2003. Since the City's Agreement with SMG does not provide for any further renewal
options, on July 31, 2002, an item was referred to the Finance and Citywide Projects
Committee to discuss the future management of the Miami Beach Convention Center
(MBCC) and the Jackie Gleason Theater of the Performing Arts (TOPA).
On October 25, 2002, the Finance and Citywide Projects Committee convened and
recommended the Administration issue a Request for Proposals (RFP) seeking qualified
firms for the management and operation of the MBCC and TOPA.
On August 27, 2002 and November 19, 2002, the Convention Center Advisory Board
discussed the future management and operation of the MBCC and TOPA and adopted
motions at both meetings recommending that the City negotiate a no bid contract to the
current operators due to the lack of qualified competitive operators worldwide and
SMG's proven track record, their professional management and operational expertise.
Commission Memo
RFP 33-02/03 - Management and Operation of MBCC, TOPA, and Other Facilities
July 2, 2003
Page 2 of 8
On January 8, 2003, the Mayor and City Commission adopted Resolution No. 2003-
25107, which authorized the issuance of a RFP for the management and operation
of the Miami Beach Convention Center, the Jackie Gleason Theater of Performing Arts,
and City cultural facilities to include but not limited to: the Byron-Carlyle Theater, the
Acorn Theater, the bandshell and/or the Colony Theater.
RFP SCOPE OF SERVICES
The RFP described the proposer's responsibilities as to management and operation of
the facilities, including the goals and objectives of the City and maintenance and repair
requirements, and are enumerated below:
The selected proposer will be responsible for the complete management and
operation of the MBCC and TOPA. The selected proposer shall furnish all
management, supervision, labor, and services consistent with generally accepted
operations of a first-class Convention Center and/or Theater, and shall be
responsible for the maintenance of the buildings and equipment and marketing of
the facilities management of various product and service providers; coordination
of facilities utilization and scheduling.
The City may also elect to contract with the selected proposer to manage and/or
market other City cultural facilities such as the Byron-Carlyle Theater, the Acorn
Theater, the bandshell and/or the Colony Theater, during the term of the
contract. The City believes that the selected proposer will provide the added
benefit of being financially capable of promoting events, providing marketing
expertise and obtaining operational efficiencies for the other City venues.
The City established certain goals and objectives to guide the management and
operation of the City facilities. In addition, the City established specific standards
of operation, which constitute a framework for the management of the Facilities
by a private management firm.
4. All proposers were informed of the following minimum contract requirements:
a. A term of three (3) years with an option for two (2) additional one (1) year
periods at the City's discretion.
b. A performance bond requirement of $1,000,000.
c. A clause for termination of contract for convenience by the City with a 120-
day notification to the awarded management company.
d. A cure period/notice process to the clause on termination of contract for
default.
5. The RFP is for the management and operation of the MBCC and the
TOPA, and not for either of the facilities.
Commission Memo
RFP 33-02/03 - Management and Operation of MBCC, TOPA, and Other Facilities
July 2, 2003
Page 3 of 8
A minimum requirement of five years experience in management and
operation of a convention center facility and a performing arts center of
similar sizes by the firm and/or key personnel of the firm.
The structure of the RFP provides at the City's sole discretion and
option, to elect to negotiate with the successful operator to manage
and/or market other City cultural facilities such as the Byron-Carlyle
Theater, the Acorn Theater, the bandshell and/or the Colony Theater,
during the term of their contract.
The RFP also requires adherence to the City's Living Wage Ordinance
and other lobbying requirements.
RFP PROCESS
RFP No. 33-02/03 was issued on February 24, 2003 with an opening date of March 21,
2003, which was subsequently changed to March 28, 2003 as a result of questions and
request for additional information from interested proposers. A pre-proposal conference
to provide information to firms considering submitting a response was held on March 7,
2003.
On March 28, 2003, the City received two (2) proposals: 1) Waterford Hotel Group,
Inc.; and 2) SMG. The Administration in consultation with the City Attorney's Office,
determined that Waterford's proposal was deemed non-responsive based on the
following:
1. No audited financial statements were submitted as required by Section III B(a)
through (e) of the RFP.
2. No resumes for its key personnel were submitted as required by Section III B(8)
of the RFP.
3. No credit report or credit history letters from financial institutions were submitted
as required by Section III B(10)(g) and (h).
4. No public entity crime form was submitted as required by Section III A(5) of the
RFP.
The City Manager via Letter to Commission (LTC) No. 88-2003, appointed an
Evaluation Committee ("the Committee") consisting of the following individuals:
· Eva Barreto, Miami Beach Chamber of Commerce
· Stu Blumberg, President, Greater Miami & the Beaches Hotel Association,
(Chairman of the Evaluation Committee)
· Mayra Diaz Buttacavoli, Assistant City Manager
· Pablo Cejas, Lincoln Road Property Owner
· Joe Fontana, Convention Center Advisory Board Member
· Nancy Wolcott, Cultural Arts Council
· Trish Walker, Chief Financial Officer
Commission Memo
RFP 33-02/03 - Management and Operation of MBCC, TOPA, and Other Facilities
July 2, 2003
Page 4 of 8
· Eugene Woodard, Budget Advisory Committee
· Donna Shaw, Director of Tourism and Cultural Development
On June 18, 2003, the Committee convened (Trish Walker and Nancy Wolcott were
unable to participate due to prior obligations) and was provided with the following
information:
1. Cone of Silence, Government in the Sunshine Law, and evaluation criteria by
Gus Lopez, Procurement Director; and
2. Project overview, background information, and scope of services by Christina
Cuervo, Assistant City Manager.
The Committee was provided with a 15-minute PowerPoint presentation from Thom
Connors, SMG Senior Vice President of Convention Centers.
SMG'S PRESENTATION
SMG is:
· The World's Leading Private Facility Management Company
· 45 Convention Centers, 31 Theaters plus Arenas, Stadiums, and Other
Venues
· 9 Million Square Feet of Exhibit Space
· Host to over 4,500 Conventions, Trade Shows, and Special Events Last Year
with Over 16 Million Attendees
SMG's Credo: We Work for You:
· Client Satisfaction
· Client Accountability
· Community Involvement
· Operational Excellence
· Customer Service
· Profitability
· Employee Satisfaction
· Business Conduct
SMG's Key Personnel Experience:
· Sr. VP of Convention Centers Thom Connors. Over 25 years of industry
experience; 12 years of direct MBCC/JGT experience.
· Sr. VP of Booking Mike Evans. Over 30 years of industry experience;
operates SMG Booking network.
· GM Doug Tober. Over 22 years industry experience; 7 years with
MBCC/JGT.
Commission Memo
RFP 33-02/03 - Management and Operation of MBCC, TOPA, and Other Facilities
July 2, 2003
Page 5 of 8
· Remainder of Key Staff. Over 100 years combined industry experience; 55
years combined MBCC/JGT experience.
SMG's Goals & Objectives:
· Focus on Service
· Ongoing Training
· Mystery Shopper
· Focus on Technology
· Wireless: needs assessment with Intel
· Focus on Security
· Threat Assessment & Emergency Preparedness Training
· Focus on Sales and Bookings
· Telemarketing Blitzes
· Database Management & Lead Generation
· Corporate Booking Strategy
Convention Center Bookings:
· NMMA/IBEX Boatbuilders Show
· Fostered by SMG/NMMA relationship
· Shoe Market of the Americas (3/year)
· Local SMG sales efforts payoff
· ISC Motorsports Summit
· Generated from SMG/PGI relationship
· VNU Hospitality Design Show
· Assisted by SMGNNU relationship
· Clear Channel Exhibitions Opportunity
· Benefit from national SMG/CCE relationship
Convention Center New Bookings:
· NMMA/IBEX Boatbuilders Show
· Fostered by SMG/NMMA relationship
· Shoe Market of the Americas (3/year)
· Local SMG sales efforts payoff
· ISC Motorsports Summit
· Generated from SMG/PGI relationship
· VNU Hospitality Design Show
· Assisted by SMGNNU relationship
· Clear Channel Exhibitions Opportunity
· Benefit from national SMG/CCE relationship
Commission Memo
RFP 33-02/03 - Management and Operation of MBCC, TOPA, and Other Facilities
July 2, 2003
Page 6 of 8
TOPA Bookings:
· Diversification of Programming
· Introduction of Family Shows
· Cultivation of Contemporary Music Promoters
· Television Broadcast Origination
· Film Festivals
· Flexibility with Half-House Configuration
· SMG Corporate Bookings Leverage
· Weekly Booking Updates
· Packaged presentations to Agents and Promoters
· SMG/JAM Joint Venture
SMG Corporate Support for Miami Beach:
· IAEM Reception
· Microsoft
· Art Basel Negotiation
· Scholarship Funding
· Contribution to Miami Beach Ali-American City Travel Expenses
· Team SMG in Top 3 City Relay for Life Fundraisers
· Development of ARTEC Program w/MDCPS
· Annual 4th of July Celebration
· JGT Bookings
· Operational Audits
· Food and Beverage
· Security& Threat Assessment
SMG's Impact:
· Cumulative Net Operating Income of over $750,000 for the last 4 years
· Facility has received Facilities & Destinations Magazine Prime Site Award
for 5 consecutive years.
· A+ Performance Rating - between 96 & 97.5% of incentive criteria over the
last 4 years.
After SMG's presentation, the Committee conducted a thorough question and
session, which lasted more than one-hour. Evaluation Committee Members
stressed the importance of the contract negotiations; specifically, the need to focus
on enhanced and integrated marketing efforts; utilizing best practices from other
markets; targeted and enhanced sales efforts, based on audience development
assessments and market research; greater oversight, direction and focus on quality
Commission Memo
RFP 33-02103 - Management and Operation of MBCC, TOPA, and Other Facilities
July 2, 2003
Page '7 of 8
of the food and beverage operations provided by Centerplate; and, an aggressive
competitive approach to attract new bookings. From the Jackie Gleason Theater
operations, the Committee emphasized the need to collaborate and meet with the
PACT to complement facility bookings. Thom Connors felt the Gleason has
consistently had to reposition itself when new competitive facilities have come on
line in Miami-Dade, Broward and Palm Beach Counties. This will be a primary focus
of SMG and the cost benefit of ongoing reinvestments in the Theater should be
carefully evaluated.
Lastly, the Committee discussed SMG's interest and benefits in operating any or all
of the optimal facilities. SMG highlighted the programmatic technical operational
and marketing advantages that could be derived by their in-house staff capacities
and recognized the City will determine, in its sole discretion, how best to proceed
with the Optional Facilities upon conclusion of the Cultural Facilities Study currently
underway.
Following the conclusion of the question and answer session the Committee scored
SMG's proposals as follows:
EVALUATION SCORING OF SMG
Eva Stu Eugene Mayra Joe Pablo Donna
Barreto Blumberg Woodard Buttacavoli Fontana Cejas Shaw
Experience
& Qualifications 20 20 20 18 15 20 15
(Max - 20)
Quality of Management 20 20 20 18 15 20 15
Team (Max - 20)
Approach and
Methodology (Max - 15) 5 5 8 10 5 8 8
Marketing Plan(Max-15) 5 5 12 10 10 10 5
Fee Proposal (Max- 20) 10 15 20 18 10 10 10
Financial Stability
and Capability (Max- 10) 10 10 10 9 10 10 8
70 75 90 83 65 78 61
EVALUATION COMMITTEE'S RECOMMENDATIONS
1. Recommend SMG as the successful proposer. (Motion by Stu Blumberg,
Second by Eva Barreto, Vote 6-0 in favor of motion).
Commission Memo
RFP 33-02/03 - Management and Operation of MBCC, TOPA, and Other Facilities
July 2, 2003
Page 8 of 8
Recommended that prior to any contractual negotiations with SMG, that a
five-year plan be completed with an operational and budget component for
both the Convention Center and TOPA. (Motion by Stu Blumberg, Second by
Pablo Cejas, Vote 6-0 in favor of motion).
Recommended that the incentive fee portion be subject to annual review and
may be renegotiated by mutual agreement. (Motion by Pablo Cejas, Second
by Joe Fontana, Vote 4-2 in favor of motion).
Recommend that the one-time contribution of $400,000 be amortized over the
term of the contract rather than 15-year period that was proposed by SMG.
(Motion by Eugene Woodard, Second by Mayra Buttacavoli, Vote 6-0 in favor
of motion).
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the
attached resolution which accepts the City Manager's recommendation, and approves
the selection of SMG, as the successful proposer pursuant to Request for Proposals
(RFP) No. 33-02/03, and further authorizes the Administration to enter into negotiations
with SMG for the Management and Operation of the Miami Beach Convention Center,
the Jackie Gleason Theater of Performing Arts, and other facilities.
JMG/CMC/GL
T:~AGENDA~2003~Ul0203Vegular~SMG.MemO.dOC