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HomeMy WebLinkAbout2004-25645 Reso RESOLUTION NO. 2004-25645 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 1 TO THE MANAGEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND SMG FOR THE MIAMI BEACH CONVENTION CENTER AND JACKIE GLEASON THEATER OF THE PERFORMING ARTS; SAID AMENDMENT ELECTING TO HAVE SMG OPERATE, MANAGE, AND PROMOTE THE BYRON-CARL YE THEATER, THE COLONY THEATER, AND THE ACORN THEATER, FOR AN INITIAL TWO (2) YEAR TERM, COMMENCING ON OCTOBER 1, 2004, AND ENDING ON SEPTEMBER 30, 2006, WITH AN OPTION TO RENEW FOR TWO (2) ADDITIONAL ONE (1) YEAR TERMS, AT THE CITY'S DISCRETION, AT AN ADDITIONAL FEE NOT TO EXCEED $40,000 PER YEAR; PROVIDING FURTHER FOR PAYMENT BY SMG TO THE CITY OF THE ADDITIONAL CAPITAL CONTRIBUTION, AS DEFINED IN AMENDMENT NO. 1. WHEREAS, on October 15, 2003, the Mayor and City Commission approved Resolution No. 2003-25381, approving and authorizing the Mayor and City Clerk to execute a Management Agreement between the City and SMG for the management, promotion, and operation of the Miami Beach Convention Center (the Convention Center) and Jackie Gleason Theater of the Performing Arts (the Theater), including, without limitation, all adjacent grounds, sidewalks, rights-of-way and marshaling areas, but not including the adjacent parking lots (collectively with the Convention Center and Theater, the Facility) located in the City of Miami Beach, Florida (the Agreement); and WHEREAS, pursuant to Section 2.2 of the Agreement, the City may elect, upon thirty (30) days written notice to SMG, at any time during the Management Term or any Renewal Term, as such terms are defined in the Agreement, to have SMG operate, manage and promote other City cultural facilities (including, without limitation, the Byron- Carlyle Theater, the Acorn Theater, the Band Shell, andlor the Colony Theater); and WHEREAS, accordingly, the City has hereby elected, as provided for in the attached Amendment No. 1 to the Agreement, to have SMG operate, manage and promote the following City cultural facilities: a) Byron-Carlyle Theater, located at 500 7151 Street, Miami Beach, FL 33141; b) Colony Theater, located at 1040 Lincoln Road, Miami Beach, FL 33139; c) Acorn Theater, located at 2100 Washington Avenue, Miami Beach, FL 33139; and WHEREAS, said Amendment is for a term of two (2) years, commencing on October 1, 2004, and ending on September 30, 2006, with two (2) additional one (1) year renewal terms, at the City's discretion, for an additional annual Management Fee not to exceed $40,000; and WHEREAS, additionally, upon approval of the attached Amendment No.1, SMG shall pay to the City an Additional Capital Contribution, said amount as defined in the attached Amendment. 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 approve and authorize the Mayor and City Clerk to execute the attached Amendment NO.1 to the Management Agreement between the City and SMG for the Miami Beach Convention Center and Jackie Gleason Theater of the Performing Arts; said Amendment electing to have SMG operate, manage, and promote the Byron-Carlye Theater, the Colony Theater, and the Acorn Theater, for an initial two (2) year term, commencing on October 1,2004, and ending on September 30,2006, with an option to renew for two (2) additional one (1) year terms, at the City's discretion, at an additional fee not to exceed $40,000 per year; providing further for payment by SMG to the City of the Additional Capital Contribution, as defined in Amend t NO.1. PASSED AND ADOPTED this 28th day of ,2004. ATTEST: 711~ CrM~~ ~/ CITY CLERK I JMG/CMC/mas F:\alloIAGUR\RESOS-ORDlSMG Amendment No. 1- Reso.doc APPROVED AS TO FORM & lANGUAGE & FOR EXECUTION A 1/1//0Y' \.... Date CITY OF. MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: Amendment NO.1 to the Management Agreement between the City of Miami Beach, Florida and SMG for the Miami Beach Convention Center and Jackie Gleason Theater of the Performing Arts to include the manaqement and ooeration of additional cultural facilities. Issue: Whether to approve a resolution amending the Management Agreement between the City of Miami Beach and SMG for the Miami Beach Convention Center and Jackie Gleason Theater of the Performing Arts to include the manaqement and operation of additional cultural facilities. Item Summary/Recommendation: On October 15, 2003, the Mayor and City Commission approved Resolution No. 2003-25381, approving and authorizing the Mayor and City Clerk to execute a Management Agreement between the City and SMG for the management, promotion, and operation of the Miami Beach Convention Center (the Convention Center) and Jackie Gleason Theater of the Performing Arts (the Theater). Pursuant to Section 2.2 of the Agreement, the City may elect to have SMG operate, manage and promote other City cultural facilities (including, without limitation, the Byron-Carlyle Theater, the Acorn Theater, the Band Shell, andlor the Colony Theater). The Administration has researched the most viable options for professional theater management at the venues. It is the recommendation of staff that the over arching goal of the operations of the Colony and Byron Carlyle Theaters is to ensure an open process for the support of small and emerging local arts organizations and develop a unique and diverse cultural experience in keeping with our thriving tropical metropolis. As per the City's contract with SMG which specified a fee not to exceed $50,000 for these services, the City has negotiated an agreed upon management fee of $40,000 annually, and all personnel, including a manager, would be operating expenses of the venues, similar to the operating relationship the City has established with SMG for the management of the Miami Beach Convention Center and Jackie Gleason Theater. This theater management structure also includes the Colony and Little Stage (Acorn) Theaters. The Administration believes it is in the best interest of the City of Miami Beach to include these additional facilities in this new theater management structure to ensure consistent management, as well as to gain economies of scale. The Administration recommends the adootion of the resolution. Adviso Board Recommendation: Reviewed and approved by the Cultural Arts Council at their July 9 2004 meeting. Furthermore, it was brou ht as an informational item to the Convention Center Adviso Board on Jul 2ih 2004. Financial Information: Amount to be expended: Source of Funds: D Finance Dept. AGENDA ITEM C 7 L DATE 7-:<8'-tJY CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 COMMISSION MEMORANDUM From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez Q.~ City Manager ov- 0 A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING AMENDMENT NO.1 TO THE MANAGEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND SMG FOR THE MIAMI BEACH CONVENTION CENTER AND JACKIE GLEASON THEATER OF THE PERFORMING ARTS TO INCLUDE THE MANAGEMENT AND OPERATION OF ADDITIONAL CULTURAL FACILITIES. Date: July 28, 2004 To: Subject: ADMINISTRATION RECOMMENDATION Approve the resolution. ANALYSIS 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 (1) the MBCC and the Gleason, or (2) the Gleason only, with an option to manage and market other City Cultural Facilities to include but not limited to: the Byron-Carlyle Theater, the Rotunda, the Acorn Theater, the bandshell and/or the Colony Theater. On October 15, 2003, the Mayor and City Commission approved Resolution No. 2003- 25381, approving and authorizing the Mayor and City Clerk to execute a Management Agreement between the City and SMG for the management, promotion, and operation of the Miami Beach Convention Center (the Convention Center) and Jackie Gleason Theater of the Performing Arts (the Theater). Pursuant to Section 2.2 of the Agreement, the City may elect, upon thirty (30) days written notice to SMG, at any time during the Management Term or any Renewal Term, as such terms are defined in the Agreement, to have SMG operate, manage and promote other City cultural facilities (including, without limitation, the Byron-Carlyle Theater, the Acorn Theater, the Band Shell, andlor the Colony Theater). As you know, the Byron Carlyle Theater recently opened and the Colony Theater is presently under renovation and scheduled to open in the near future under the City's jurisdiction. As such, the Administration has researched the most viable options for professional theater management at the venues. It is the recommendation of staff that the over arching goal of the operations of the Colony and Byron Carlyle Theaters is to ensure an open process for the support of small and emerging local arts organizations and develop a unique and diverse cultural experience in keeping with our thriving tropical metropolis. This will be important for not only effective marketing and audience development but for creating a solid prospectus for increased financial support in the future. The management structure is pivotal to this process. July 28, 2004 Commission Memorandum SMG Amendment No. 1 Page 20fS The Administration believes that exercising the option in the current management contract with SMG is the most expedient method and best option available to the City for getting immediate theater management in place. SMG has demonstrated their ability to manage small theaters through their current national portfolio and the City believes SMG is more than capable of operating both the Byron Carlyle and Colony Theaters and would clearly offer potential cost efficiencies. Furthermore, AMS recently completed a study in which there was a detailed assessment of the existing performing arts venues in Miami Beach and their management systems. This study made a series of recommendations including a structure for managing the Byron Carlyle and Colony Theaters. That recommendation was a hybrid model where SMG would assume the portion of the theater management related to services (marketing, ticketing, box office and concessions) and another independent entity would assume the operationslfacility management (facility-related services, technical assistance and staff, programming, rentals, maintenance) portion. While this model was recommended by the AMS study, there is unanimous concern about the difficulties and confusion that could arise with two individual companies responsible for managing the theaters. Having two separate entities involved in the day-to-day management of the venues lends to potential breakdowns in communication. City Staff discussed the communication concerns with AMS after reviewing their recommendation. AMS recommended this model in order to take advantage of SMG's core competencies and address the concerns expressed by the non-profit/performing arts organizations. It is with this goal that the City Administration and SMG have negotiated a management structure for the additional facilities and have developed a model which, the Administration believes incorporates the AMS suggested hybrid and addresses the perceived concerns of the non-profit/performing arts organizations. The management structure assumes the City Tourism and Cultural Development Department would handle the booking and overall oversight of the facility and its mission and objectives. SMG would then provide operational support services, to include event Front of House functions (ushers, ticket takers, box office, and security) and overall facility operations management services (financials, housekeeping, maintenance). The City through the Tourism and Cultural Development Department will drive the marketing functions, with SMG staff providing some support through its existing MBCCIJGT staff. The arrangement is detailed more specifically in the attached contract amendment and Exhibit A. The following summarizes the responsibilities outlined in the amendment: City Manaaement Responsibilities General Management: . Liaison with local arts organizations . Liaison with City of Miami Beach Administration July 28, 2004 Commission Memorandum SMG Amendment No. 1 Page 3 ofS . Develop and oversee missionlstrategic vision for Additional Facilities . Develop, in conjunction with SMG, marketing program for Additional Facilities with any final program approvals to be made by the City . Develop annual budget in conjunction with SMG, with final approval of Additional Facilities budgets by Tourism and Cultural Development Department Director, prior to submission of SMG budget to City Administration and City Commission . Tourism and Cultural Development Department will be responsible for marketing and promotion of the Additional Facilities Booking . Answer telephone booking inquiries . Show Additional Facilities to all potential clients . Keep Calendar of Events for availability and holds . Generate and execute agreements for rental of Additional Facilities . Disseminate booking and contract information to respective SMG departments Facility Operations . The City's Public Works Department Property Management Division will be responsible for maintaining all major components, including but not limited to roof, lift station, elevators, and fire control panel. SMG Responsibilities Business Operations: . Verify or purchase Insurance . Accept payments (deposits and final payment) . Prepare Settlements . Prepare payroll for SMG employees . Procure operating supplies . Process Accounts Payable . Process Accounts Receivable . Assist in the development of Annual Budget . Generate Monthly Financial Statements Facility Operations: . Schedule the opening and closing of the Additional Facilities as per users' needs . Maintain utilities and telephone service . Venue cleaning . Venue security . Maintain all theater non-production equipment in working condition . Oversee maintenance contracts as necessary . Maintain Additional Facilities in accordance with and in conformance to local fire and safety laws . Coordinate and assist Property Management and Capital Improvement Projects Office in the installation and quality control of all capital improvements July 28, 2004 Commission Memorandum SMG Amendment No. 1 Page 4 of 5 . Provide marketing assistance as requested for events and venue . Collaborate and obtain prior City approval, in connection with any advertising, promotion, socialization or sponsorship opportunities in connection with the Additional Facilities, as well as assist with the development of any future marketing plans, advertising buys, and website development. Event Operations . Provide House Manager, ushers and ticket takers . Staff, operate, and maintain concession operations . Provide security as required by City . Coordinate with users for special receptions, events Production: . Provide Stage Manager, who will: o Contact users for technical riders o Evaluate time necessary to set up show (time in theatre) o Supervise the load-in 1 show I and load out of every production o Provide crew o Update technical rider, light plot, ground plan and any other material needed in advance by users, performers, etc... o Provide show crew billing sheets to SMG Finance for settlement o Provide point person to answer technical questions regarding venue. o Maintain all theater production equipment in excellent working condition (order replacement parts and lamps for all equipment) o Work with City on grants Box Office . Build shows . Daily settlements . Show settlements . Answer telephone inquiries . Maintain regular box office hours per budgeted allowances As per the City's contract with SMG which specified a fee not to exceed $50,000 for these services, the City has negotiated, an agreed upon management fee of $40,000 annually, and all personnel, including a House Manager, will be accounted for as operating expenses of the venues, similar to the operating relationship the City has established with SMG for the management of the Miami Beach Convention Center and Jackie Gleason Theater. The City's contract with SMG also states that SMG will pay the City an additional $62,500 as "Additional Capital Contribution" should the City elect to have SMG manage the additional facilities. This sum is equal to twenty-five (25%) of the management fee earned by SMG over the term of the agreement, including the renewal option, over 5 years. Pro rating the management fee for the Colony Theater and assuming management of the additional facilities continues through the renewal term of the agreement, the additional capital contribution paid by SMG to the City will be $37,500 over the remaining four years. July 28, 2004 Commission Memorandum SMG Amendment No. 1 Page 5of5 Such prorated amount is reflected in the attached amendment. The City Administration also feels the concerns of the non-profit/performing arts organizations can be further addressed through an established contractual tier rental rate program. Proposed rental rates for the facilities are submitted as a separate item in this Commission agenda for your consideration. As you may notice, this theater management structure also includes the Colony and Little Stage (Acorn) Theaters. The Administration believes it is in the best interest of the City of Miami Beach to include these additional facilities in this new theater management structure to ensure consistent management, as well as to gain economies of scale. This recommended management structure was reviewed and approved by the Cultural Arts Council at their July 9th 2004 meeting. Furthermore, this Amendment No. 1 to the management agreement was brought as an informational item to the Convention Center Advisory Board on July 2ih 2004. CONCLUSION The Mayor and the City Commission should approve the resolution authorizing Amendment No.1 to the Management Agreement between the City of Miami Beach, Florida and SMG for the Miami Beach Convention Center and Jackie Gleason Theater of the Performing Arts to include the management and operation of additional cultural facilities. JMG/C~/MAS T:\AGENDA\2004UuI2804\Regular\SMG Amendment No. 1.CM.doc