Resolution 2023-32722RESOLUTION NO. 2023-32722
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER PURSUANT TO
INVITATION TO NEGOTIATE (ITN) NO. 2023-338-ND, FOR
MANAGEMENT AND OPERATION OF THE MIAMI BEACH
CONVENTION CENTER CAMPUS; AUTHORIZING THE
ADMINISTRATION TO NEGOTIATE WITH GLOBAL SPECTRUM, L.P.
D/B/A OVG360; AND FURTHER REQUIRING THAT THE FINAL TERM
SHEET BE SUBJECT TO APPROVAL BY THE MAYOR AND CITY
COMMISSION.
WHEREAS, on May 17, 2023, the Mayor and City Commission approved the
issuance of the Invitation to Negotiate (ITN) No. 2023-338-ND for Management and
Operation of the Miami Beach Convention Center Campus; and
WHEREAS, Invitation to Negotiate No. 2023-338-ND (the "ITN") was released on
May 19, 2023; and
WHEREAS, a voluntary pre -proposal meeting was held on May 31, 2023; and
WHEREAS, on July 3, 2023, the City received a sole proposal from Global
Spectrum, L.P. d/b/a OVG360; and
WHEREAS, on July 11, 2023, the City Manager, via Letter to Commission No.
313-2023, appointed an Evaluation Committee consisting of: Kathie Brooks, Consultant,
Office of the City Manager; Jose Del Risco, Assistant Director, Parks and Recreation
Department; Francisco Garcia, Division Director, Facilities and Fleet Management
Department; Laurence Herrup, Chair, Convention Center Advisory Board; Matt Kenny,
Assistant Director, Marketing and Communications Department; Julissa Kepner, Board
Vice Chair/Convention Sales Committee Chair, Greater Miami & Miami Beach
Convention and Visitor's Bureau; General Manager, Miami Marriott Biscayne Bay; and
Heather Shaw, Assistant Director, Economic Development Department; and
WHEREAS the Evaluation Committee convened on July 28, 2023, to review and
score the proposal; and
WHEREAS, the Evaluation Committee received an overview of the project,
information relative to the City's Cone of Silence Ordinance and the Government
Sunshine Law, general information on the scope of services, and a copy of the
proposal; and
WHEREAS, the Evaluation Committee was instructed to score and rank the sole
proposal pursuant to the evaluation criteria established in the ITN; and
2023
WHEREAS, after reviewing the submission, the City Manager concurs with the
evaluation committee and recommends that the Mayor and City Commission authorize
the Administration to enter into negotiations with Global Spectrum, L.P. d/b/a OVG360-1
and further, authorize the City Manager and City Clerk to execute an agreement upon
the conclusion of successful negotiations by the Administration.
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 recommendation of the City Manager, pursuant to
Invitation to Negotiate (ITN) No. 2023-338-ND, for Management and Operation of the
Miami Beach Convention Center Campus-, authorize the Administration to enter into
negotiations with Global Spectrum, L.P. d/b/a OVG360, as the sole proposer-, and
further require that the final term sheet be subject to approval by the Mayor and City
Commission.
PASSED AND ADOPTED this
ATTEST:
SEP 2 0
Rafae E. Granado, City Clerk
S\�'Q
`' .E
..........9
IKORP ORAIED`
13 day of Sfp4e�4b"r 2023.
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
�-6-23
City Attorney @oY Date
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 13, 2023
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER PURSUANT TO INVITATION TO NEGOTIATE (ITN)
NO. 2023-338-ND, FOR MANAGEMENT AND OPERATION OF THE MIAMI
BEACH CONVENTION CENTER CAMPUS; AUTHORIZING THE
ADMINISTRATION TO NEGOTIATE WITH GLOBAL SPECTRUM, LP. D/B/A
OVG360; AND FURTHER REQUIRING THAT THE FINAL TERM SHEET BE
SUBJECTTO APPROVAL BYTHE MAYORAND CITYCOMMISSION.
It is recommended that the Mayor and City Commission approve the Resolution authorizing the
Administration to negotiate a management agreement with Global Spectrum, L.P. d/b/a
OVG360, the sole proposer for Invitation to Negotiate (ITN) No. 2023-338-ND for
management and operation of the Miami Beach Convention Center campus. The Resolubon
requires that the agreement be subject to approval by the Mayor and City Commission.
The solicitation is currently under the cone of silence.
,(eM*Ilj ► I o . •:
Located in the heart of Miami Beach, the newly renovated Miami Beach Convention Center
("MBCC") is a state-of-t *-art, flexible special event and exhibition space that welcomes more
than 600,000 visitors annually hosting 67 regional, national, and international events. The MBCC
is recognized for its excellence as a destination of choice, creating significant economic impact
for the City of Miami Beach and the region. The MBCC campus encompasses 1.4 million
square feet of indoor space, inclusive of four (4) exhibition halls totaling approximately 500,000
square feet, a grand ballroom of approximately 61,000 square feet, a pre -function area of
approximately 18,000 square feet, 84 meeting rooms, and four (4) junior ballrooms, with
approximately nine (9) acres of public green space, an 800-space rooftop parking facility, and
approximately $10 million of public art.
In 2013, the Administration entered into a Management Agreement ("Agreement') with Global
Spectrum, L.P., d/b/a Spectra Venue Management (ne OVG360, a division of the Oak View
Group) for the management of the Miami Beach Convention Center and Colony Theater via
Resolution No. 2013-28276. In initial term of the agreement was for three (3) years, from
Page 41 of 2938
October 1, 2013, to September 30, 2016, with two (2) one-year renewal options. In September
2016, the City terminated OVG360's responsibilities to manage and operate the Colony
Theater.
The original term (including renewal options) included a period from 2013 to 2018; however,
pursuant to Resolution No. 2015-29191, Amendment No. 1 to the Agreement extended the
term through September 30, 2020. In October 2018, prior to the expiration of the then extended
term, the Mayor and City Commission adopted Resolution No. 2018-30508 authorizing
Amendment No. 2, extending the term of the Agreement for an additional two (2) years,
commencing on October 1, 2020, and expiring on September 30, 2022, for a then total term of
nine (9) years. In September 2019, pursuant to Resolution No. 2019-30986, Amendment No. 3
to the Agreement increased OVG360's monthly imprest amount and established an OVG360-
funded annual internship contribution. In June 2021, Amendment No. 4 modified the Agreement
to include the management and maintenance of Pride Paris and Collins Canal Paris, including the
Carl Fisher Clubhouse and Annex (ne Rum Room and Venu), and extended the term of the
Agreement for an additional eighteen (18) months, with the expiration of the term to occur on
March 31, 2024, for a total term of ten (10) years and six (6) months. All renewal options have
been exhausted.
While OVG360 is currently responsible for managing the MBCC campus, note that Sodexo
Live! (previously known as Centerplate) is separately and exclusively contracted to manage all
food and beverage services and operations through September 30, 2026. To ensure continuity
of management operations during the critical years leading up to the completion of the adjacent
800-room Grand Hyatt MBCC hotel (targeted to open in 2026), renovation of the Fillmore
Theater, and the growth of international and domestic convention, conference, and destination
group sales, on May 17, 2023, the Administration recommended, and the Mayor and City
Commission authorized the issuance of Invitation to Negotiate (ITN) No. 2023-338-ND for
management and operations of the MBCC campus.
On May 19, 2023, the ITN was issued seeking proposals from convention facility management
companies capable of providing a full range of comprehensive management, operations, and
maintenance services for the Miami Beach Convention Center campus. The Procurement
Department issued bid notices to 14,019 companies through the e-procurement system and 57
email notifications to various real estate, property, building, and business management
companies including but not limited to small and disadvantaged businesses. The ITN process
invited submittals from qualified firms that have proven experience in major market convention or
exhibition facility management and operations.
Forty-four (44) prospective bidders accessed the advertised solicitation. A voluntary pre -
proposal conference was held on May 31, 2023, to provide information to proposers submitting
a response. One (1) firm attended the pre -proposal conference. Despite significant efforts by
staff to identify and notify viable firms of the ITN, on July 3, 2023, a sole proposal was received
from Global Spectrum, L.P. d/bla OVG360.
On July 11, 2023, the City Manager appointed the Evaluation Committee via LTC # 313-2023.
The Evaluation Committee convened on July 28, 2023, to consider the proposal received. The
Committee was comprised of Kathie Brooks, Consultant, Office of the City Manager; Jose Del
Risco, Assistant Director, Parks and Recreation Department; Francisco Garcia, Division
Director, Facilities and Fleet Management Department; Laurence Herrup, Chair, Convention
Page 42 of 2938
Center Advisory Board; Matt Kenny, Assistant Director, Marketing and Communications
Department; Julissa Kepner, Board Vice Chair/Convention Sales Committee Chair, Greater
Miami & Miami Beach Convention and Visitor's Bureau; General Manager, Miami Marriott
Biscayne Bay; and Heather Shaw, Assistant Director, Economic Development Department.
The Committee was provided an overview of the purpose of the solicitation, information relative
to the Citys Cone of Silence Ordinance, and the Government Sunshine Law. The Committee
was also provided with general information on the scope of services and a copy of the proposal.
The Committee determined that OVG360 was qualified and should be considered for
negotiations (see Attachment A).
Global Spectrum, L.P. was founded in 1994 as a management consulting firm. In November
2021, the Oak View Group acquired Global Spectrum, L.P., forming OVG360, a full -service
venue management company. According to its marketing materials, OVG360 strives to add
value through excellence and innovation in booking and premium content development, venue
management and consulting, sustainable operations, public health and public safety, hospitality
and food services, parting and mobility services, and more. It provides a holistic service model
that includes sales, marketing, analytics, and operational support. As OVG360 is the incumbent
providing these services to the City, it should be noted that the City has been satisfied with its
worts over the term of the existing agreement.
Since initially taking over the management of the MBCC, not only has OVG360 hosted
hundreds of events, including Art Basel Miami Beach and the Super Bowl LIV Fan Experience,
but it has placed MBCC at the top tier of convention centers earning various awards and
recognition from national meeting publications around the country, including most recently
Association, Convention & Facilities Magazine's 2023 Distinctive Achievement Award.
Moreover, thanks to its partnership and collaboration with the City and its stakeholders, OVG360
has overcome various obstacles, such as the $640 million renovation of the venue, hurricanes
and rain events, Zika virus, and the COVID-19 pandemic all while protecting [one of] the Citys
most valuable assets and supporting the community in times of need. OVG360 understands
the importance of the MBCC within the greater Miami Beach community and intends to ensure
that the MBCC's operation remains best -in -class. Its future plans for the MBCC campus
include increasing industry exposure, maximizing sponsorship revenue, and ensuring a
seamless integration and maximum collaboration with the new Grand Hyatt hotel.
SUPPORTING SURVEY DATA
Based on the 2022 Miami Beach Community Survey, 84.1% of local businesses think the
MBCC contributes positively to the overall value of doing business in Miami Beach. The City
seeks to negotiate an agreement to enhance the MBCC as a local economic driver.
FINANCIAL INFORMATION
Nationally, convention centers typically operate with a financial subsidy while providing a broader
indirect economic impact to the community through tourism and hospitality -related visitor
spending. The MBCC is supported and funded by revenue generated by the MBCC (including
rentals, food, and beverage sales), Resort Tax (Convention Development Tax), and Miami
Beach Redevelopment Agency (RDA) tax increment revenue. The new MBCC management
agreement is intended to continue generating revenue for the City, with the selected company
being compensated on an agreed -upon, fixed management fee with incentives based on
performance. The management fee (currently at approximately $363,000 annually) is subject to
Page 43 of 2938
annual increases based on the lesser of 3 percent or the consumer price index (CPI).
Additionally, the current incentive is capped at the value of the annual management fee.
Operating expenses related to managing, maintaining, promoting and marketing the MBCC
(including personnel expenses) are funded by the City. Operating revenues offset operating
expenses. The financial considerations of the agreement will be negotiated with the
selected firm and presented to the City Commission for consideration and approval.
CONCLUSION
After reviewing the submission and the Evaluation Committee's rankings and commentary, it is
evident that OVG360 has the experience necessary to manage and operate the MBCC
campus. OVG 360 is one of the largest venue management firms globally, partnering with more
than 400 facilities across North America and over 60 convention centers, some of similar size
and magnitude to the MBCC campus (the Atlantic City Convention Center in Atlantic City, NJ,
and the Duke Energy Convention Center in Cincinnati, OH) to provide unmatched services
across venue management, hospitality, and partnerships.
Additionally, in partnership with the Administration, OVG360 has already committed to fostering
and promoting more resident -centric activations and accessibility at Pride Park to better align
with community needs. For the reasons stated herein, it is recommended that the Mayor and
City Commission approve the Resolution authorizing the Administration to negotiate with Global
Spectrum, L.P. d/b/a OVG360, the sole proposer for Invitation to Negotiate (ITN) 2023-338-
ND, provided that the final agreement be subject to approval by the Mayor and City
Commission.
Applicable Area
South Beach
Is this a "Residents Riaht Does this item utilize G-0-
• Know" item, pursuant t• • 1•Funds?
City Code Section 2-14?
No No
Lea6slative Tracking
Economic Development/Procurement
ATTACHMENTS:
Description
o Attachment A
o Resolution
Page 44 of 2938
Pape 45 of 2938