HomeMy WebLinkAbout2001-24573 RESO
RESOLUTION NO. 2001-24573
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
TWO ONE-YEAR RENEWAL OPTIONS OF THE MANAGEMENT
SERVICES AGREEMENT FOR THE MIAMI BEACH CONVENTION
CENTER AND THE JACKIE GLEASON THEATER OF THE
PERFORMING ARTS WITH SMG (FORMERLY KNOWN AS
SPECTACOR MANAGEMENT GROUP), SAID AGREEMENT
DATED OCTOBER 1,1998; SAID RENEWAL TERM COMMENCING
ON OCTOBER 1, 2001, AND ENDING ON SEPTEMBER 30, 2003;
SAID RENEWAL TERM CONDITIONED UPON AND SUBJECT TO
THE NEGOTIATED TERMS SET FORTH IN THIS RESOLUTION,
AND TO BE MEMORIALIZED IN WRITING IN A DOCUMENT TO BE
SUBMITTED BY SMG AND APPROVED BY THE
ADMINISTRATION AND CITY ATTORNEY'S OFFICE.
WHEREAS, on December 19,1990, the City entered into a Management Services
Agreement with Spectacor Management Group (SMG) for the management of the Miami
Beach Convention Center (MBCC) and the Jackie Gleason Theater of the Performing Arts
(Gleason), said Agreement for an initial term of three-years, commencing on January 1,
1990, and ending December 31, 1993; and
WHEREAS, on June 30, 1993, the City exercised its option to extend the
Agreement for two successive one-year terms covering the period of January 1, 1994,
through December 31, 1995; and
WHEREAS, on April 19, 1995, the City Commission approved the waiver of formal
bidding procedures for the Management Agreement, and authorized approval of a new
Agreement, for the period of October 1, 1995, through September 30, 1998; and
WHEREAS, on December 5, 1997, the City issued Request for Proposals (RFP)
No. 5-97/02, seeking proposals from qualified firms for the management and operation of
MBCC and Gleason, and SMG was deemed the first ranked proposer; and
WHEREAS, on July 15, 1998, the City approved a new Management Agreement,
for the period of October 1, 1998, through September 30,2001, with two one-year renewal
terms; and
WHEREAS, the Administration would herein recommend that the Mayor and City
Commission approve both renewal terms, subject to and conditioned upon the foregoing
newly negotiated terms being incorporated into the existing Agreement; and
WHEREAS, the following new terms are herein agreed to by the City and SMG as
consideration for the City's approval of the aforestated two one-year renewal terms, with
respect to payment of the Incentive Fee by the City, pursuant to Article III of the
Agreement:
A. 40 percentage credits on maintenance of facilities and equipment, for meeting
or exceeding the maintenance goals set forth in the approved and adopted
maintenance and operation manual for MBCC and Gleason, including the
comprehensive preventive maintenance program;
B. 20 percentage credits on financial performance for MBCC as follows:
. 2% increase over the previous contract year 5 percentage credits
of the incentive year
. 2.1 - 4% increase over previous contract year
. Over 4% increase over previous contract year
7 percentage credits
8 percentage credits;
C. 10 percentage credits on monitoring of the food and beverages services
provided by Volume Services America, to be apportioned as follows:
. Improvements in client evaluation results 3 percentage credits
. Per capita sales increase at MBCC 4 percentage credits
. Per capita of sales increase at Gleason 3 percentage credits;
D. 30 percentage credits on booking of events at the Gleason Theatre.
. 210 booked use days 30 percentage credits
. 200 booked use days 25 percentage credits
. 190 booked use days 20 percentage credits
. 180 booked use days 15 percentage credits;
and
WHEREAS, in addition to the above SMG will also provide $15,000, upon
commencement of each option year (for a total of $30,000) for the establishment of a
scholarship fund for needy Miami Beach residents pursuing a career in Public Facilities
Management or Hospitality Management; and
WHEREAS, SMG also agrees to provide to the City, upon commencement of the
option term, the sum of $66,000, to be used at the City's discretion; and
WHEREAS, at its regular meeting on July 24, 2001 the Convention Center Advisory
Board passed a motion to recommend the City's exercise of the renewal options, by the
terms negotiated herein for the period of October 1, 2001 through September 30, 2003.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission herein approving the two one-year renewal options of the Management
Services Agreement for the Miami Beach Convention Center and the Jackie Gleason
Theater of the Performing Arts with SMG (formerly known as Spectacor Management
Group), said Agreement dated October 1, 1998; said renewal term commencing on
October 1, 2001, and ending on September 30, 2003; said option terms conditioned upon
and subject to the negotiated terms set forth in this Resolution, and to be memorialized in
writing in a document to be submitted by SMG and approved by the Administration and
City Attorney's Office.
PASSED AND ADOPTED THIS 5th day of September
,2001.
Attest:
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CITY CLERK
1~ MAYOR
JMG/MDB/rar
T:\AGENDA\2001\sep0501\REGULAR\$mgmanagementagreementRESO.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
CITY OF MIAMI BEACH
To;
From:
Subject:
COMMISSION MEMORANDUM
Mayor Neisen O. Kasdin and
Members of the City Commission
Jorge M. Gonzalez a . - ~
City Manager . P"" D
A RESOLUTION F THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE TWO ONE-YEAR RENEWABLE OPTIONS OF
THE MANAGEMENT SERVICES AGREEMENT FOR THE MIAMI BEACH
CONVENTION CENTER AND THE JACKIE GLEASON THEATER OF THE
PERFORMING ARTS BETWEEN THE CITY OF MIAMI BEACH AND SMG
FORMERLY KNOWN AS SPECT ACOR MANAGEMENT GROUP, RENEWAL
OF SAID AGREEMENT COMMENCING ON OCTOBER 1, 2001, AND ENDING
ON SEPTEMBER 30, 2003.
Date: September 5, 2001
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
On December 19, 1990, the City of Miami Beach entered into a Management Services
Agreement with Spectacor Management Group (SMG) for the management of the Miami
Beach Convention Center (MBCC) and the Jackie Gleason Theater of the Performing Arts
(Gleason). The Agreement was for an initial term of three-years, commencing on January
1,1990, and ending December 31,1993. On June 30,1993, the City exercised its option
to extend the Agreement for two successive one-year terms covering the period of January
1, 1994, through December 31, 1995. On April 19, 1995, the City Commission approved
the waiver of formal bidding procedures for the Management Contract, thus extending the
Management Services Agreement with SMG, and approving a new Agreement for the
period of October 1, 1995, through September 30, 1998.
On December 5,1997, the City of Miami Beach issued Request for Proposals (RFP) No.
5-97102, seeking proposals from qualified firms for the management and operation of
MBCC and/or Gleason. On April 1, 1998, the City Commission adopted a Resolution for
the Administration to enter into negotiations for a Management Services Agreement with
the recommended firm of SMG pursuant to the recommendation of the City Manager and
the Evaluation Committee.
AGENDA ITEM _R 76-
DATE q-S--CJ(
September 5, 2001
Commission Memorandum
SMG Agreement Renewal
Page 2 of 4
On July 15, 1998, the City approved the Agreement for the period of October 1, 1998
through September 30, 2001 with two one-year renewable options.
The current Agreement calls for the extension of the term, and at the City's option, for up
to two additional one-year terms under the same conditions as currently included in the
Agreement which are:
. Base management fee of $271,798, to be adjusted annually by CPI.
. Incentive fee, to a maximum of base management fee, to be earned based on the
following criteria:
30 percentage credits tied to deficit reduction as compared to the preceding
three-year average loss. The incentive will not exceed the deficit reduction
realized.
The City shall award SMG up to 45 percentage credits for meeting or exceeding
the maintenance goals set forth in the approved and adopted maintenance and
operation manual for the facilities, including the comprehensive preventive
maintenance program. Such evaluation shall take into account the quarterly
review of the Property Management Department and a yearly review by an
outside independent party, such as the Miami-Dade County General Services
Administration Property Management Division. Additionally, on a monthly basis,
a maintenance report will be submitted to the Convention Center Advisory Board
(CCAB) for their review.
25 percentage credits based on oversight of food and beverage services
provided by Volume Services America.
Improvements in client evaluation results
7 percentage credits
Per capita sales increase at Convention Center
11 percentage credits
Per capita of sales increase at Gleason Theater
7 percentage credits
. SMG's contribution to the City of $33,000 for each option year exercised, to be used
at the City's discretion.
The following terms were negotiated for the approval of the two-one year options:
A. 40 percentage credits on maintenance of facilities and equipment, as for meeting
or exceeding the maintenance goals set forth in the approved and adopted
maintenance and operation manual for the facilities, including the
September 5, 2001
Commission Memorandum
SMG Agreement Renewal
Page 3 of 4
comprehensive preventive maintenance program. Such evaluation shall take
into account the quarterly review of the Property Management Department and
a yearly review by an outside independent party, such as the Miami-Dade
County General Services Administration Property Management Division.
Additionally, on a monthly basis, a maintenance report will be submitted to the
CCAB for their review.
B.
20 percentage credits on net financial performance.
. 2% increase over previous year
. 2.1 - 4% increase over previous year
. Over 4% increase over previous year
5 percentage credits
7 percentage credits
8 percentage credits
"Exclude Microsoft revenue and expense from 2000/2001 from incentive calculations
in 2001-2002.
"Excludes increase in concession sales due to percentage increase in extended
Volume Services America Agreement.
"For purposes of incentive calculations in the renewal period, any increase in
Windstorm Insurance from the 2000/2001 actual expense will not be considered.
C.
10 percentage credits on monitoring of the food
provided by Volume Services America.
. Improvements in client evaluation results
. Per capita sales increase at Convention Center
. Per capita of sales increase at Gleason Theater
and beverages services
3 percentage credits
4 percentage credits
3 percentage credits
D. 30 percentage credits on booking of events at the Gleason Theatre.
. 210 booked use days 30 percentage credits
. 200 booked use days 25 percentage credits
. 190 booked use days 20 percentage credits
. 180 booked use days 15 percentage credits
SMG will provide $15,000 at the commencement of each option year exercised ($30,000
total) for the establishment of a scholarship fund for needy Miami Beach residents pursuing
a career in Public Facilities Management or Hospitality Management.
Also, as per the existing Agreement, SMG agreed to provide to the City $66,000 for the
two-year extension to be used at the City's discretion.
The CCAB assisted the Administration with recommendations during the negotiation
period.
September 5, 2001
Commission Memorandum
SMG Agreement Renewal
Page 4 of4
The CCAB met on June 26, 2001 to discuss the terms negotiated for the renewal options.
On July 24, 2001 the CCAB passed a motion to recommend the exercising of the renewal
options as negotiated for the period of October 1, 2001 through September 30, 2003.
The City Administration recommends that the City Commission approve the Resolution.
JMG:CMC:~ICd
Attachment
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PrIvate Management for Public Fadlltles
Wes Westley
President & CEO
Mr. Jorge M. Gonzalez
City Manager
City of Miami Beach
1700 Convention Center Dr.
4th Floor
Miami Beach, FL 33139
November 30,2001
Dear Mr. Gonzalez:
Weare pleased that the Board of Commissioners of the City of Miami Beach has chosen to award
the two one-year extensions to SMG for the management of the Miami Beach Convention Center
and the Jackie Gleason Theater. This letter shall serve as our acknowledgement and agreement of
the action taken by the Commission on September 5, 2001.
The extension shall be applicable to the Management Services Agreement originally approved by
the Commission on July 15, 1998, and shall extend the term of said Agreement, per Section VI. B).
through September 30, 2003. All terms and conditions of the Agreement shall remain in effect,
with the exception of the replacement of Section III. B). 1).,2)., and 3). with the following:
. 40 points on maintenance of facilities, as for meeting or exceeding the maintenance
goals set forth in the approved and adopted maintenance and operation manual for the
facilities, including the comprehensive preventive maintenance program. Such
evaluation shall take into account the quarterly review of the Property Management
Department and a yearly review by an outside independent party, such as the Miami-
Dade County General Services Administration Property Management Division.
Additionally, on a monthly basis, a maintenance report will be submitted to the CCAB
for their review.
. 10 points on oversight of the food and beverages services provided by Volume Services
America
o Improvements in client evaluation results
o Per capita sales increase at Convention Center
o Per capita of sales increase at Gleason Theater
3 points
4 points
3 points
. 20 points on net financial performance
~ November 30,2001
Stadiums + Arenas + Convention Centers + Theaters
701 Mar/fet Street + 4th Floor + Philadelphia, PA 19106 + Voice: 215.592.6604 + Fax: 215.592.0361
'- >.
o 2% increase over previous year
o 2.1 - 4% increase over previous year
o Over 4% increase over previous year
5 points
7 points
8 points
o Exclude Microsoft revenue and expense from 2000/2001 from incentive
calculations in 2001-2002
o Excludes increase in concession sales due to percentage increase in extended
Volume Services America Agreement
o For purposes of incentive calculations in the renewal period, any increase in
Windstorm Insurance from the 2000/20001 actual expense will not be
considered
· 30 points on booking of events at the Gleason Theatre
o 210 hooked use days =
o 200 booked use days =
o 190 booked use days =
o 180 booked use days =
30 points
25 points
20 points
15 points
SMG will provide $15,000 for each option year exercised ($30,000) for the establishment of a
scholarship fund for needy residents pursuing a career in Public Facilities Management or
Hospitality Management. Also, as per the existing Agreement, SMG agrees to provide to the City
$66,000 for the two-year extension.
Weare pleased to have been the managing agent on behalf of the City of Miami Beach for the
Miami Beach Convention Center and Jackie Gleason Theater since 1991, and proud of the
accomplishments we've achieved while working with the City to bring the Center and Theater to
their current prestigious positions. We look forward to continuing our relationship and providing
exemplary service for many years to come.
Sincerely,
\\~
d 0 Jo~Lez
City Manager
City of Miami Beach
Wes Westley
cc: Thom Connors, SMG
John Bums, SMG
Bob McClintock, SMG
Doug Tober, SMG
APPROVED AS TO
FORM & LANGUAGE
~ A FOR EXECUTION
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Attest:
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November 30, 2001
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An SMG Managed Facility
Miami Beach Convention Center
Jackie Gleason Theater
MEMORANDUM
TO:
Jorge Gonzalez
City Manager
Douglas w. TObe~\r.MI\
General Manager '~ .
FROM:
RE:
Letter of Agreement
DATE:
April 29, 2002
Attached please find an executed copy of the letter of agreement between the City of Miami
Beach and SMG.
DWT/gm
Cc: Christina Cuervo, Asst. City Manager
Robert Parcher, City Clerk
Gus Lopez, Procurement
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