Resolution 2018-30508 RESOLUTION NO. 2018-30508
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN
RECOMMENDATION OF THE CITY MANAGER AND WAIVING, BY5/7TH
VOTE, THE COMPETITIVE BIDDING REQUIREMENT PURSUANT TO
SECTION 2-367 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN
THE BEST INTEREST OF THE CITY, AND APPROVING AMENDMENT
NO. 2 TO THE CITY'S AGREEMENT WITH GLOBAL SPECTRUM, L.P.
D/B/A SPECTRA VENUE MANAGEMENT ("GLOBAL"), FOR THE
OPERATION, MANAGEMENT, MAINTENANCE, PROMOTION AND
MARKETING OF THE MIAMI BEACH CONVENTION CENTER,WITH SAID
AMENDMENT NO. 2 EXTENDING THE TERM OF THE AGREEMENT FOR
AN ADDITIONAL TWO YEAR PERIOD, COMMENCING ON OCTOBER 1,
2020 AND EXPIRING ON SEPTEMBER 30, 2022; FURTHER,
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE
AMENDMENT NO. 2.
WHEREAS, on July 17, 2013,the Mayor and City Commission adopted Resolution
No. 2013-28276, authorizing the City and Global to negotiate and execute a Management
Agreement between the City and Global Spectrum, L.P., d/b/a Spectra Venue
Management ("Global") for the management of the Miami Beach Convention Center,
Colony Theater(the "Management Agreement"); and
WHEREAS, subsequently, the Administration entered into a Management
Agreement with Global with an initial term that commenced on October 1, 2013 through
September 30, 2016, with two one-year renewal options; and
WHEREAS, in Resolution No. 2015-29191, the Mayor and City Commission
approved Amendment No. 1 to the Agreement, extending the term of the Management
Agreement through September 30, 2020; and
WHEREAS, the City is currently in the process of completing the Miami Beach
Renovation and Expansion Project ("MBCC Project"), which, since 2015, substantially
reduced the availability of the Convention Center for events,thereby limiting Global's ability
to book events and generate revenues under the Management Agreement; and
WHEREAS, to ensure continuity of operations during the critical initial years
following the completion of the Convention Center Project,the City Manager recommends
the waiver of the competitive bidding requirement and approval of the proposed
Amendment No. 2, a copy of which is attached to the Commission Memorandum
accompanying this Resolution, with said Amendment No. 2 extending the term of the
Agreement for an additional two years, commencing on October 1, 2020 and expiring on
September 30, 2022, for a total term of nine years, including all prior renewals and
extensions.
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 hereby accept the written recommendation of the City Manager and waive, by
5/7th vote, the competitive bidding requirement pursuant to Section 2-367 of the City Code,
finding such waiver to be in the best interest of the City, and approving Amendment No. 2
to the City's agreement with Global Spectrum, L.P. D/B/A Spectra Venue Management
("Global"), for the operation, management, maintenance, promotion and marketing of the
Miami Beach Convention Center, with said Amendment No. 2 extending the term of the
Agreement for an additional two year period, commencing on October 1, 2020 and expiring
on September 30, 2022; and further authorizing the Mayor and City Clerk to execute
Amendment No. 2.
PASSED and ADOPTED this is day of 5e/41(44er: 2018.
ATTEST:
an Gelber, Mayor
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Rafael E. Granado, City Clerk
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 12, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN RECOMMENDATION OF
THE CITY MANAGER AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE
BIDDING REQUIREMENT PURSUANT TO SECTION 2-367 OF THE CITY CODE,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND
APPROVING AMENDMENT NO. 2 TO THE CITY'S AGREEMENT WITH GLOBAL
SPECTRUM, L.P. D/B/A SPECTRA VENUE MANAGEMENT ("GLOBAL"), FOR THE
OPERATION, MANAGEMENT, MAINTENANCE, PROMOTION AND MARKETING
OF THE MIAMI BEACH CONVENTION CENTER, WITH SAID AMENDMENT NO. 2
EXTENDING THE TERM OF THE AGREEMENT FOR AN ADDITIONAL TWO
YEAR PERIOD, COMMENCING ON OCTOBER 1, 2020 AND EXPIRING ON
SEPTEMBER 30, 2022; FURTHER, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AMENDMENT NO. 2.
RECOMMENDATION
The Administration recommends that the City extend the Management Agreement with Spectra
Management Group to operate, manage, maintain, promote and market the Miami Beach
Convention Center by two(2) years to expire September 30, 2022.
ANALYSIS
On July 17, 2013, the Mayor and City Commission adopted Resolution No. 2013-28276, authorizing
the City and Global to negotiate and execute a Management Agreement between the City and Global
Spectrum, L.P., d/b/a Spectra Venue Management ("Global") for the management of the Miami
Beach Convention Center, Colony Theater(the"Management Agreement").
Subsequently, the Administration entered into a Management Agreement with Global with an initial
term that commenced on October 1, 2013 through September 30, 2016, with two one-year renewal
options.
In Resolution No. 2015-29191, the Mayor and City Commission approved Amendment No. 1 to the
Agreement, extending the term of the Management Agreement through September 30, 2020.
In Fall 2018, the $620 million renovated and e>q>anded Miami Beach Convention Center ("MBCC")
will reopen to great expectations from the local, regional and national communities. After three (3)
years of living and working through construction which substantially reduced the availability of MBCC
for events, thereby limiting Global's ability to book events and generate revenues under the
Management Agreement, the renovated center will now host 500,000 square feet of renovated e#>ibit
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space, a 60,000 square foot grand ballroom, 20,000 square foot glass rooftop junior ballroom and 84
meeting rooms. The Center can now host now more than 10,000 for a formal dinner, accommodate
800 vehicles in rooftop parking, and will continue to host world-class events such as Art Basel, CA
World, and launch new events such as Grand Basel, the 100th anniversary of the NFL - Super Bowl
LIV, and potentially the Democratic National Convention in 2020.
Currently, Global is contracted to operate, manage, maintain, promote and market the MBCC until
2020. During the renovation, the Center was managed by interim senior management. In the last few
months, Global has hired an assistant general manager as well as reorganized the personnel
structure in an effort to be more effective, efficient and productive. In addition, as of September 4, a
new general manager has assumed the oversight of the daily operations and strategic leadership of
MBCC to position the Center competitively in the national and international meetings and events
community and manage the final touches of the renovations. This individual brings two decades of
management experience with the two convention centers in Boston, MA. and I personally interviewed
him and am excited about his joining the team.
With the assistance and direction of senior City of Miami Beach leadership, MBCC will build upon
clear, consistent and strategic goals; leverage strategic relationships and partnerships; re-engage
with the community; continue to attract and retain the best in class professional team members and
vendors; and keep ahead of competition and position MBCC amongst the top globally significant
convention centers in the world.
To ensure continuity of operations during the critical initial years following the completion of the
Convention Center Project and the retention of talented senior management staff, the City Manager
recommends the waiver of the competitive bidding requirement and approval of the proposed
Amendment No. 2, a copy of which is attached to the Commission Memorandum accompanying this
Resolution, with said Amendment No. 2 extending the term of the Agreement for an additional two
years, commencing on October 1, 2020 and expiring on September 30, 2022, for a total term of nine
years, including all prior renewals and
extensions.
CONCLUSION
In view of the impending re-opening of MBCC, the new change in Global's senior staffing, and the
potential for the Center to host major events such as the Super Bowl and Democratic National
Convention in 2020, the Administration recommends a waiver of the City's competitive bidding
requirements of Section 2-367 of the City Code, for the limited purpose of authorizing an additional
extension of the Management agreement for a two (2) year period, as it is in the best interests of the
City to extend the Management Agreement for the operation, management, maintenance, promotion
and marketing of MBCC through September 30, 2022 to ensure continuity of management and
delivery of services for the MBCC.
KEY INTENDED OUTCOMES SUPPORTED
Mabmize The Miami Beach Brand As A World Class Destination
Legislative Tracking
Tourism, Culture and Economic Development
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ATTACHMENTS:
Description
o Global Spectrum Amendment 2 Resolution
❑ Amendment No. 2 - Management Agreement CMB and Global Spectrum LP for MBCC
Page 1574 of 1802
AMENDMENT NO. 2 TO THE MANAGEMENT AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND GLOBAL SPECTRUM L.P.
FOR THE MIAMI BEACH CONVENTION CENTER
This Amendment No. 2 to the Management Agreement, is made and entered into this
day of , 2018, by and between the CITY OF MIAMI BEACH,
FLORIDA, a municipal corporation having its principal office at 1700 Convention Center
Drive, Miami Beach, Florida, 33139 (City), and GLOBAL SPECTRUM, L.P., d/b/a
Spectra Venue Management, a Delaware limited partnership, whose current address is
3601 S. Broad Street, Philadelphia, PA 19148-5290 ("Global").
RECITALS
WHEREAS, the City and Global are parties to a Management Agreement, dated
October 7, 2013, pursuant to which the City engaged Global to manage and operate the
Miami Beach Convention Center (the Management Agreement, as so amended and
modified, is referred to herein as the"Agreement"); and
WHEREAS, the initial term of the Agreement was three (3) years, ending on
September 30, 2016, subject to the City's right to extend the term for an additional two
(2)years; and
WHEREAS, on October 21, 2015, in Resolution No. 2015-29191, the Mayor and
City Commission approved Amendment No. 1 to the Agreement, extending the term
thereof through September 30, 2020; and
WHEREAS, capitalized terms used herein and not defined herein shall have the
meaning given to such terms in the Agreement.
NOW, THEREFORE, in consideration of the mutual premises, covenants and
agreements herein contained, and other good and valuable consideration, in receipt and
adequacy of which are hereby acknowledged and intending to be legally bound, the City
and Global hereby amend the Agreement as follows:
1. The aforestated recitals are true and correct and incorporated by
reference herein.
2. The City hereby extends the Term of the Agreement for an
additional two (2) year period (the "2020 Renewal Term")with such 2020 Renewal Term
commencing on October 1, 2020, and ending on September 30, 2022. Global hereby
accepts such extension, and hereby confirms that the 2020 Renewal Term shall
commence on October 1, 2020, and end on September 30, 2022.
3. No Further Modifications. Except as provided in this Amendment
No. 2, the Agreement remains unmodified and in full force and effect. All references to
the Agreement in the Agreement or in any other document referencing the Agreement
shall be deemed to refer to the Agreement as amended hereby.
(REMAINDER OF PAGE LEFT INTENTIONALLY BLANK)
Page 1577 of 1802
IN WITNESS WHEREOF, this Amendment has been duly executed by
the parties hereto as of the day and year first above written.
ATTEST: CITY OF MIAMI BEACH, FLORIDA
Rafael E. Granado, City Clerk Dan Gelber, Mayor
GLOBAL SPECTRUM, L.P. d/b/a
Spectra Venue Management
ATTEST:
Chief Operating Officer
Secretary
Print Name
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