Resolution 2024-33232 RESOLUTION NO. 2024-33232
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING AMENDMENT NO. 6 TO THE
MANAGEMENT AGREEMENT DATED OCTOBER 7, 2013 BETWEEN THE
CITY OF MIAMI BEACH AND GLOBAL SPECTRUM L.P. D/B/A OVG360 FOR
THE MIAMI BEACH CONVENTION CENTER (EXISTING AGREEMENT) TO
EXTEND THE TERM OF THE EXISTING AGREEMENT ON A MONTH TO
MONTH BASIS FOR AN ADDITIONAL THREE (3) MONTHS, COMMENCING
ON OCTOBER 1, 2024 AND EXPIRING NO LATER THAN DECEMBER 31,
2024, TO ALLOW THE PARTIES ADDITIONAL TIME TO FINALIZE THE KEY
TERMS OF THE NEW AGREEMENT; APPROVING THE WAIVER, BY 5/7TH
VOTE, OF THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN
SECTION 2-367 OF THE CITY CODE; AND FURTHER, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO.6.
WHEREAS, the City and Global Spectrum L.P. ("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, on September 23, 2016, the City Manager accepted notice to terminate the
agreement for Global as manager and operator of the Colony Theater effective, September 30,
2016;and
WHEREAS, on September 12, 2018, in Resolution No. 2018-30508, the Mayor and City
Commission approved Amendment No. 2 to the Agreement, extending the term thereof through
September 30, 2022; and
WHEREAS, on September 11, 2019, in Resolution No. 2019-30986, the Mayor and City
Commission approved Amendment No. 3 to the Agreement, approving an increase in Global's
monthly impress amount and established a Global funded annual internship contribution; and
WHEREAS, on June 23, 2021, in Resolution No. 2021-31754, the Mayor and City
Commission approved Amendment No. 4 to the Agreement providing for the management and
maintenance, by Global, of Collins Canal Park, the two (2) clubhouse buildings formerly known
as the Carl Fisher Clubhouse and Little Stage Theaters, and Pride Park, including the mangroves
along Collins Canal with the footprint of the park; provided for an additional annual fee of seventy-
five thousand dollars ($75,000) in consideration of the additional scope, and extended the term
of the Agreement to March 31, 2024; and extended the term of the agreement for 18 months
resulted in the misalignment of the term of the Agreement with the City's fiscal year; and
WHEREAS, in June 2022, Global notified the City of a merger between Global and Oak
View Group and its intent to operate and manage the Miami Beach Convention Center under the
fictitious name"OVG360"; and
WHEREAS, on February 21, 2024, in Resolution No. 2024-32912, the Mayor and City
Commission approved Amendment No. 5 to the Agreement extended the term by six(6)months,
to align with the related Sodexo Live! and GMCVB agreements. Accordingly, the amended term
of the Agreement will commence on April 1, 2024 and expire on September 30, 2024; and
WHEREAS, Amendment No. 6 to the Agreement allows the parties additional time to
finalize the key terms of the new agreement.
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 authorize Amendment No. 6 to the management agreement dated October
7, 2013, between the City of Miami Beach and Global Spectrum L.P. d/b/a OVG360 for the Miami
Beach Convention Center (existing agreement)to extend the term of the existing agreement on
a month to month agreement,for an additional three(3)months,commencing on October 1,2024,
and expiring no later than December 31, 2024, to allow the parties additional time to finalize the
key terms of the new; approve the waiver, by 5/7th vote, of the formal competitive bidding
requirement in Section 2-367 of the City Code;and further, authorize the Mayor and City Clerk to
execute Amendment No. 6.
PASSED AND ADOPTED this II day of Pp/el/bee 2024.
ATTEST:
Rafael . Gran do, City Clerk Steven Meiner, Mayor
if-::, •. s`` APPROVED AS TO
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City Attorney OM' Date
Agenda Item C7G
Date 9-//--2y
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager Ceti
DATE: September 11, 2024
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING AMENDMENT NO. 6 TO THE
MANAGEMENT AGREEMENT DATED OCTOBER 7, 2013 BETWEEN THE CITY
OF MIAMI BEACH AND GLOBAL SPECTRUM LP. D/B/A OVG360 FOR THE
MIAMI BEACH CONVENTION CENTER(EXISTING AGREEMENT)TO EXTEND
THE TERM OF THE EXISTING AGREEMENT ON A MONTH TO MONTH BASIS
FOR AN ADDITIONAL THREE (3) MONTHS, COMMENCING ON OCTOBER 1,
2024 AND EXPIRING NO LATER THAN DECEMBER 31, 2024, TO ALLOW THE
PARTIES ADDITIONAL TIME TO FINALIZE THE KEY TERMS OF THE NEW
AGREEMENT; APPROVING THE WAIVER, BY 5/7TH VOTE, OF THE FORMAL
COMPETITIVE BIDDING REQUIREMENT IN SECTION 2-367 OF THE CITY
CODE; AND FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE AMENDMENT NO. 6.
RECOMMENDATION
It is recommended that the Mayor and City Commission adopt the resolution approving
Amendment No. 6 to the Management Agreement dated October 7, 2013 between the City and
Global Spectrum L.P. d/b/a/OVG360 for the management of the Miami Beach Convention Center
on a month to month basis, not to exceed an extended term of three(3)months, expiring no later
than December 31, 2024.
BACKGROUND/HISTORY
On July 17, 2013, the Mayor and City Commission adopted Resolution No. 2013-28276,
authorizing the City and Global Spectrum, L.P.("Global")to negotiate and execute a Management
Agreement for the management of the Miami Beach Convention Center("MBCC")and the Colony
Theater, (as amended and modified, and referred to herein as the "Management Agreement" or
"Agreement").
On October 7, 2013, the Administration entered into a Management Agreement with Global with
an initial term of three(3)years commencing on October 1, 2013 and expiring on September 30,
2016, with two (2) one-year renewal options.
Pursuant to Resolution No. 2015-29191, the Mayor and City Commission approved Amendment
No. 1 to the Agreement, extending the term through September 30, 2020.
Pursuant to a letter dated September 23, 2016, the City and Global confirmed the City's
termination for convenience of Global's responsibilities as manager and operator of the Colony
Theatre, as permitted in subsection 12.2(c) of the Agreement. Global's management
responsibilities for the Miami Beach Convention Center did not change.
In October 2018, the City and Global executed Amendment No. 2 (authorized by Resolution No.
2018-30508), 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 total term of nine (9) years,
including all prior renewals and extensions.
In September 2019, pursuant to Resolution No.2019-30986,Amendment No. 3 to the Agreement
increased Global's monthly imprest amount and established a Global-funded annual internship
contribution.
On June 23, 2021, the Mayor and City Commission adopted Resolution No. 2021-31754,
approving Amendment No. 4 to the Agreement providing for the management and maintenance,
by Global, of Collins Canal Park, the two (2) clubhouse buildings formerly known as the Carl
Fisher Clubhouse and Little Stage Theaters, and Pride Park, including the mangroves along
Collins Canal within the footprint of the park. The amendment also provided for an additional
annual fee of seventy-five thousand dollars ($75,000) in consideration of the additional scope,
and extended the term of the Agreement to March 31, 2024. Because the agreement was
extended for 18 months, this extension resulted in the misalignment of the term of the Agreement
with the City's fiscal year.
In June 2022, Global notified the City of a merger between Global and Oak View Group and in
August 2022, Global notified the City of its intent to operate and manage the Miami Beach
Convention Center under the name"OVG360".
On February 21,2024,via Resolution No.2024-32912,the Mayor and City Commission approved
Amendment No. 5 to the Agreement which extended the term by six (6) months, from April 1,
2024, through September 30, 2024, to align with the related Sodexo Live! and Greater Miami
Convention and Visitors Bureau (GMCVB) agreements.
ANALYSIS
International and domestic conventions, conferences and destination meetings are returning to
pre-COVID-19 pandemic levels. To ensure continuity of the management and oversight of the
Miami Beach Convention Center campus, particularly in view of the anticipated construction and
opening of the convention center hotel, it is critical to create symmetry amongst the convention
center-related management,operations and sales agreements during the upcoming critical period
of reputation growth. Among its various responsibilities, OVG360 is charged with marketing,
promoting, and booking clients at the Miami Beach Convention Center, often in collaboration with
the GMCVB.
Tangentially, following a competitive solicitation process (ITN 2023-338-ND) and pursuant to
Resolution No. 2023-32722 adopted on September 13, 2023, the Administration is currently
negotiating an agreement with OVG360 for management and operation of the Miami Beach
Convention Center campus. The Administration intends to bring forward for consideration by the
Mayor and City Commission a new management agreement with OVG360. It is the
Administration's recommendation to approve Amendment No. 6 to the Agreement to extend the
term on a month to month basis by up to three (3)months, until such time as the new agreement
is approved and executed. Accordingly, the amended term of the month to month Agreement will
commence on October 1, 2024 and expire no later than December 31, 2024, pending approval of
the new management agreement.
Although OVG360 was the sole proposer pursuant to Invitation to Negotiate (ITN)2023-338-ND
for management of the Miami Beach Convention Center campus, given the proposed extension
contemplated by Amendment No. 6 is not pursuant to the solicitation, the Administration
recommends a waiver, by 5/7th vote of the competitive bidding requirement in Section 2-367(e)
of the City Code.
LOBBYIST DISCLOSURE
In accordance with Resolution No. 2023-32857, adopted by the City Commission on December
13, 2023, the following information has been provided by the Administration as it relates to the
subject resolution.
1. Was the Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
2. If so, specify name of lobbyist(s)and principal(s): N/A
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 management fee (currently at
approximately$373,000 annually) is subject to annual increases based on the lesser of three(3)
percent or the consumer price index(CPI). Operating expenses related to managing, maintaining,
promoting, and marketing the MBCC (including personnel expenses) are funded by the City.
Operating revenues offset operating expenses.
This amendment does not contemplate any changes to the existing financial terms of the
Management Agreement. Funding is currently budgeted and allocated for this purpose.
The forthcoming MBCC management agreement, to be presented at a later date, is intended to
continue generating revenue for the City, with the selected management firm, OVG360,
compensated on an agreed-upon, fixed management fee with incentive fees based on
performance.
CONCLUSION
The Administration recommends that the City Commission approve Amendment No. 6 to the
Agreement.As set forth above,Amendment No.6 shall require a waiver of the competitive bidding
requirement in Section 2-367(e)of the.City Code, finding such waiver to be in the best interest of
the City.
STRATEGIC CONNECTION
Prosperity—Develop the Convention Center campus
Resolutions -C7 G
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: September 11, 2024
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING AMENDMENT NO. 6 TO THE
MANAGEMENT AGREEMENT DATED OCTOBER 7, 2013 BETWEEN THE CITY
OF MIAMI BEACH AND GLOBAL SPECTRUM L.P. D/B/A OVG360 FOR THE MIAMI
BEACH CONVENTION CENTER (EXISTING AGREEMENT) TO EXTEND THE
TERM OF THE EXISTING AGREEMENT ON A MONTH TO MONTH BASIS FOR
AN ADDITIONAL THREE (3) MONTHS, COMMENCING ON OCTOBER 1, 2024
AND EXPIRING NO LATER THAN DECEMBER 31, 2024, TO ALLOW THE
PARTIES ADDITIONAL TIME TO FINALIZE THE KEY TERMS OF THE NEW
AGREEMENT; APPROVING THE WAIVER, BY 5/7TH VOTE, OF THE FORMAL
COMPETITIVE BIDDING REQUIREMENT IN SECTION 2-367 OF THE CITY CODE;
AND FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE
AMENDMENT NO. 6.
RECOMMENDATION
Item to be submitted in Supplemental.
BACKGROUND/HISTORY
ANALYSIS
FISCAL IMPACT STATEMENT
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE)was published on:
See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
Page 316 of 1377
CONCLUSION
Applicable Area
Citywide
Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
No No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
Economic Development
Sponsor(s)
Co-sponsor(s)
Condensed Title
Amendment 6, Miami Beach Convention Center Management Agreement. ED
Page 317 of 1377