98-22706 RESO
RESOLUTION NO. 98-22706
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RANKING OF
RESPONSES RECEIVED AND AUTHORIZING THE ADMINISTRATION TO
ENTER INTO NEGOTIATIONS FOR A CONTRACT WITH THE NUMBER-
ONE RANKED FIRM, SPECTACOR MANAGEMENT GROUP, PURSUANT
TO RFP NO. 5-97/02 FOR THE MANAGEMENT AND OPERATION OF THE
MIAMI BEACH CONVENTION CENTER AND JACKIE GLEASON THEATER
OF THE PERFORMING ARTS FOR A THREE-YEAR PERIOD, WITH AN
OPTION FOR TWO ADDITIONAL ONE-YEAR PERIODS.
WHEREAS, the City issued a Request for Proposals (RFP) No. 5-97/02, for the
management and operation of the Miami Beach Convention Center and Jackie Gleason Theater of
the Performing Arts for a three-year period, with an option for two additional one-year periods; and
WHEREAS, specification packages for RFP No. 5-97/02 were issued on December 5, 1997,
resulting in two responses; and
WHEREAS, an Evaluation Committee, approved by the City Manager, and the Mayor and
City Commission, met on March 13, 1998, and March 20, 1998, and recommended the firm of
Spectacor Management Group; and
WHEREAS, the City Manager has reviewed the responses and the recommendation of the
Evaluation Committee and concurs with its recommendation.
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 herein accepts the recommendation of the City Manager now authorizing the
Administration to enter into negotiations with the number-one ranked respondent, Spectacor
Management Group, pursuant to RFP No. 5-97/92 for the Management and Operation of the Miami
Beach Convention Center and Jackie Gleason Theater of the Performing Arts for a Three-Year
Period, with an Option for Two Additional One-Year Periods.
PASSED and ADOPTED this -.kL day of April, 1998.
IJIJI
MAYOR
]Lz:~ f (U~
CITY CLERK
MDB:jf
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
~~31"6$
ty mey Date
MINUTES
EVALUATION COMMITTEE MEETING
RFP NO. 5-97/92, MANAGEMENT AND OPERATION OF THE MIAMI BEACH
CONVENTION CENTER AND JACKIE GLEASON mEA TER OF PERFORMING ARTS
MARCH 13, 1998,8:30 A.M.
The first Evaluation Committee meeting for this RFP was held on March 13, 1998, in the City Manager's
Large Conference Room, fourth floor of City Hall.
Evaluation Committee members in attendance included: Mayra Diaz Buttacavoli, James Sutter, Bill
Farkas, Jack Hartley, Artie Unger, and Raquel Vallejo. Leo Salome and Brad Krassner were unable to
attend, and Stu Blumberg relayed his questions via a conference telephone call. Judy Ford was present,
representing the Procurement office.
Ms. Buttacavoli made some opening remarks, and described the evaluation procedure to be followed. Mr.
Unger suggested that both proposers be present during presentations. Ms. Ford advised him that the
committee needed to follow the procedure set forth in the RFP.
Mr. Blumberg was reached by telephone. He requested that a written legal opinion be obtained regarding
whether Globe Facility Services' proposal is non-responsive:
-Because they did not submit the requested certified financial statement
-Because they do not have experience managing facilities of similar size
After further discussion, the committee also requested that the legal opinion also address whether the City
could accept a personal guaranty from an individual in lieu of the certified financial statement.
The committee was advised that the legal opinion would be requested and distributed to the committee
members before the presentations on March 20, 1998.
The committee voted for a Chairperson, with the following results:
Jack Hartley
Stu Blumberg
5 votes
2 votes
Ms. Buttacavoli discussed the evaluation criteria set forth in the RFP, and described the current contract
with SMG. The committee agreed that SMG would make the first presentation at 11 :00 a.m. on 3/20/98,
and that Globe would be scheduled at 1 :00 p.m. It was also agreed that the proposers would be allotted
20 minutes for presentations, with 30 minutes for questions and answers.
Committee members requested that they be provided with a matrix to be used for ranking during
presentations, and a copy of the existing SMG contract.
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ATTACHMENT #1
Minutes.S
180
CITY OF MIAMI BEACH
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO:
Sergio Rodriguez
City Manager V
Murray H. Dubbin . ~h~
City Attorney ~\k\~'W'
Raul 1. Aguila ~G\ ~
First Assistant Cit~ t.\ttorney
C.A.O. NO. 98-11
FROM:
C.M.O. NO. 4-3/98
DATE:
March 18, 1998
RE:
RFP EVALUATION COMMITTEE FOR THE MANAGEMENT AND
OPERATION OF THE MIAMI BEACH CONVENTION CENTER AND THE
JACKIE GLEASON THEATER OF THE PERFORMING ARTS
On December 5, 1997, the City issued Request for Proposals No. 5-97/02 for Management
and Operation of the Miami Beach Convention Center (Convention Center) and the Jackie Gleason
Theater of the Performing Arts (TOP A) for a Three- Year Period with Option for Two Additional
One- Year Periods at the City's discretion (RFP). Pursuant to the RFP's submission deadline on
February 6, 1998, two proposals were received from, respectively, Spectacor Management Group
(SMG), the City's current management firm at the Convention Center and TOP A, and Globe
Facilities Services (GFS). An Evaluation Committee appointed by the City Manager to consider
said proposals met on March 13, 1998, and requested that the Administration request a legal opinion
from this office on the following issues;
1. Is GFS's Statement of Combined Income and Expenses and bank reference
letter responsive to the City's request in the RFP for a Certified Financial
Statement for the last year?
2. In lieu of the Certified Financial Statement, would the City accept a personal
guaranty of financial commitment?
3. Additionally, is GFS responsive to the City's RFP in the area of "management
of facilities of similar size?"
Section 3 of the RFP, entitled "Proposal Format," sets forth required documentation to be
included in the submitted proposals. Among those requirements are "a summary of [the] past
2~~'~~""""'"''''-~~,,<1;r_~;,';~''i!.,:;m~,~~
ATTACHMENT #2
181
.//
The language in the RFP expressly states that "Proposals which do not include all required
documentation or are not submitted in the required format or which do not have the appropriate
signatures on each document, ~ be deemed to be non-responsive." (See Section III on page 14
of the RFP) [Emphasis Supplied]. Although the effect of GFS's failure to comply with the
requirementS in the RFP as above stated is ultimately a discretionary decision, the facts indicate that
the discretion has been substantially limited.
Should you have any questions or comments regarding the foregoing, please do not hesitate
to contact me.
RJAIlcw(F:1A rrOIAGURICA0\9"II.CAO)
3
183
MINUTES FROM EVALUATION COMMITTEE MEETING AND PRESENTATIONS
RFP 5-97/02 - MANAGEMENT & OPERATION OF MIAMI BEACH CONVENTION
CENTER AND JACKIE GLEASON THEATER OF THE PERFORMING ARTS
March 20, 1998, 10:30 a.m.
The Evaluation Committee meeting came to order at 10:50 a.m. Mayra Diaz Buttacavoli spoke
about the process to be followed during the evaluation.
A Conflict ofInterest Disclosure Form was collected from each committee member. Raul Aguila
of the City Attorney's office spoke to the committee about the legal opinion which had been
rendered regarding Globe's responsiveness to the City's RFP, and the responsibilities of the
committee.
Jack Hartley expressed his opinion that the requirements of a certified financial statement and
management of facilities of similar size should not have been included in the RFP.
A matrix was distributed to be used by the committee to make comments during the oral
presentations.
SMG started their presentation at 11 :25 a.m.; the committee allowed an additional 5 minutes for
summary. The question and answer session began at 11:50 a.m.
Jack Hartley
-What facilities managed by SMG operate at a profit?
-What is the reason for the increased usage of 25% at Convention
Center in the past vs. the decrease projected fOI: 1998/1999?
-Is there a conflict between bookings at Miami Beach Convention
Center and Fort Lauderdale Convention Center?
Leo Salom
-Discussed recent trend in acceleration of hotel bookings and how
that relates to the Convention Center.
Mayra D. Buttacavoli -What short-term bookings is SMG responsible for bringing to the
Convention Center?
- What possible operational changes to increase revenues are
recommended?
Artie Unger
-Asked SMG about the importance of "size" of facilities SMG
manages to this award.
Raquel Vallejo
- Talked about loss of Art Miami event; asked for description of the
Convention Centers booking policy
-Would SMG work with smaller cultural arts groups?
1
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ATTACHMENT #3
184
Brad Krassner
Stu Blumberg
Bill Farkas
-Asked about the production of Cook & Book show.
-Asked if$lOO,OOO grant is one-time only or annually.
-Asked about feasibility of SMG managing the parking, the way they
do at other facilities, to offset the deficit.
-Asked what the "game plan" is to increase revenues at TOP A.
- Talked about role of SMG as promoters as well as landlords.
-Discussed TOP A as a niche theater rather than a national theater.
Globe Facility Services, Inc. started their presentation at 1 :25 p.m., and went longer then the allowed
25 minutes, and the allowed 30 minutes for questions and answers.
Jack Hartley
Brad Krassner
Artie Unger
Bill Farkas
Stu Blumberg
Leo Salom
Raquel Vallejo
Jack Hartley
-Discussed the lack of a certified financial statement and how Globe
could guarantee a $500,000 savings annually.
-Asked how important it is that Globe has not managed facilities of
similar size.
- Talked about his familiarity with Globe and PFM's expertise in
facility management.
-Questioned Globe's profit level for this contract.
-Talked about increasing usage of more than one Convention Center
hall at a time as being a key issue.
-Asked about the different marketing to be useq for TOPA.
-Advised Globe about Service America's contract limitations.
-Advised Globe that the Greater Miami Convention and Visitors
Bureau office is located on-site at Convention Center.
-Expressed concern about a separate budget for TOPA not being
provided (TOP A is a profit-making facility, as opposed to the
Convention Center, which runs a deficit).
-Asked about the conflict of interest and competition for bookings
which exists between the Knight Center and TOP A.
-Asked if compensation fee was included in operating budget.
-Asked the number of years Mich Sauers was with SMG.
- Asked about PFM's participation in cultural arts and other
community activities.
-Asked if Globe had competed against SMG in the past.
2
185
Mayra D. Buttacavoli -Asked Globe about short-term bookings they were responsible for
at two other facilities they manage; also asked about long-term
booking policy.
-Asked about the occupancy at other facilities.
- Asked what the reduction of expenses were recommended at
Convention Center.
-Asked about opportunities to create additional revenue.
Artie Unger
-Asked if Globe has managed the communications at other facilities.
Stu Blumberg
-Questioned Globe's projected savings when number of employees
is similar to SMG's.
-Discussed competition with Orlando area - whether it is feasible to
raise rates at Miami Beach Convention Center.
- Asked who would be named as General Manager at Convention
Center.
After further discussion, the Evaluation Committee voted for the top-ranked proposer, as follows:
Voter Globe SMG
Leo Salom 1
Raquel Vallejo 1
Jack Hartley 1
Stu Blumberg 1
Bill Farkas 1
Jim Sutter 1
Mayra D. Buttacavoli I
Artie Unger I
Total 3 5
Brad Krassner stated that he found both proposers to be equal in quality.
M:\$CMB\TEMP\MINUTES. TOP
Attachment
3
186
I
ATIENDANCE SIGN-IN SHEET
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21.5 The FIRM agrees that the divulging or disclosure of any lead for future bookings ..If
at the CENTER by personnel of the FIRM to other competing public assembly
facilities ot' individuals, including any public assembly facilities owned or
operated by FIRM, is prohibited. The FI&\1 shall place in effect stringent
polides and procedures designed to prevent such occurrence. In the event the
Executive Director submits a written finding of fact of a specific disclosure of a
lead by CENTER pe~sonnel supponed by reasonable evidence, the culpable
individual(s) shall be immediately terminated or transferred from the CENTER
without any severance pay due from the CITY. CITY agrees that the transfer of
an event to another venue shall not be sufficient cause to justify such termination.
ARTICLE 22
COMPLIANCE WITH LAWS
22.1 The FIRM agrees to comply with aU local. state and federal ordinances and laws.
statutes, rules, and regulations; provided that the CITY will cooperate to the
extent necessary to enable compliance by the FIR1\l(.
22.2 APPLICA~lLITY OF CHARTER AND CODE PROVISIONS:
This Agreement is subject to the budget and fiscal provisions of the CITY's
Charter and Code. This requirement shall be controlling against any and all of the
other provisions of this Agreement
ARTICLE 23
.TERMlNATION O~ ~GBE~~EN:T
23.1
FIRM shall be in a default hereunder and CITY shall thereafter have the right to
terminate this Agreement if (i) FIRM shall fail to pay any sum payable herein
with five (5) business days after same is due and payable; or (ii) FIRM shall fail
to perform or comply with any of the other terms, covenants, agreements or
conditions hereof and such failure shall continue for more than thirty (30) days
after written notice thereof from EXEClmVE DIRECTOR In the event that the
FI~[ reasonably determines that an event of default is not susceptible to being
cured within the thirty (30) day period, FIRM shall not be considered in defuult if
FIRM shall within such thirty (30) day period have commenced with due
diligence and dispatch to cure such default and shall thereafter complete with.
dispatch and due diligence the curing of such default.
..,... .,
....J._.
The City shall have the right to 'terminate this Agreement in whole or in part for
convenience; by giving the FIRM is given not less than one hundred twenty (120)
days' written notice (delivered by certified mail, return receipt requested) of
intent to terminate. In event of notice of termination, the FIRM shall take all
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24
ATTACHMENT #4
188
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S3Xl I rls ~ ~BSO;:J
01: : C 1: :3661-i:l0-;:Jtll'l
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.f1.us
COMMISSION MEMORANDUM NO. J 91- 98
TO:
Mayor Neisen O. Kasdin and
Members of the City Co ission
DATE: April 1, 1998
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
Request to ut orize the Administration to Enter into Negotiations for a
Contract with the Recommended Firm, Spectacor Management Group (SMG),
Pursuant to Request For Proposals (RFP) No. 5-97/02 for the Management and
Operation of the Miami Beach Convention Center and Jackie Gleason Theater
of the Performing Arts for a Three-Year Period with an Option for Two
Additional One-Year Periods.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
FUNDING:
Funding will be available from the Convention Center/Theater Management Fee Budget Account
No. 440.0441.000354.
BACKGROUND:
On December 19, 1990, the City of Miami Beach entered into a management services agreement
with SMG for an initial term of three years, commencing on 1/1/90 and ending on 12/31/93, with
two optional one-year renewal terms, which were exercised. The City's agreement with SMG was
extended on June 30, 1993, and expires on September 30, 1998.
The City of Miami Beach issued RFP No. 5-97/02 on December 5, 1997, seeking proposals from
qualified firms for the management and operation of the Miami Beach Convention Center and/or the
Jackie Gleason Theater of the Performing Arts. The Convention Center is 503,000 sq. ft. of
ballroom, exhibit rooms and meeting room space. The seating at the Gleason Theater is 2,705.
Specifications were mailed to sixteen firms, and a pre-proposal meeting and site visit was conducted
on January 6, 1998. Prospective proposers submitted requests for additional information which
resulted in a five volume amendment. As a result, the deadline for receipt of proposals was amended
from January 23, 1998 to February 6, 1998. Proposals were received from Globe Facility Services,
Inc. and SMG.
The RFP was written to allow award for the management and operation of the Convention Center
and/or the Theater, and proposers were required to submit a proposal guaranty in the amount of
$15,000. The successful proposer will be required to furnish a Performance Bond in the amount of
Five-Hundred Thousand Dollars during the agreement period, and an Insurance Certificate naming
the City of Miami Beach as "additional insured."
174
AGENDA ITEM -R 2. A
DATE~
RFP 5-97/02
April 1, 1998
Page Two
ANALYSIS:
Globe Facility Services, Inc. (GFS), which is based in Tampa, submitted a proposal in association
with Private Facility Management (PFM) for the management and operation of both facilities. GFS
was founded in May, 1994 by its three principals, Nick Flaskay, Mich Sauers, and Ken Young.
None of the convention centers that GFS manages are of the size of the Miami Beach Convention
Center. The two Convention Centers managed by GFS are:
. Harborview Convention Center, Clearwater, FL - 65,000 sq. ft.
. Pueblo Convention Center, Pueblo, CO - 21,400 sq. ft.
Additionally, other facilities managed by GFS are:
· James L. Knight International Center, Miami, FL - 5,000 seat auditorium; 16,000 sq.ft.
exhibition space; 28,000 sq. ft. Miami Convention Center.
. West Palm Beach Auditorium, West Palm Beach, FL - 6,500 seat auditorium; 26,000 sq. ft.
exhibition space.
. Whittemore Center Arena, University of New Hampshire, Durham, NH - 7,617 seat
auditorium; 19,500 sq.ft. exhibition space.
· Colorado Springs World Arena, Colorado Springs, CO - 8,500 seat auditorium; 20,000 sq.ft.
exhibition space.
GFS has proposed a contractual relationship with PFM, under which PFM will be paid a percentage
ofGFS' fees for the management of the Jackie Gleason Theater of the Performing Arts. PFM, which
was incorporated in 1988, would provide an on-site representative to serve as General Manager, and
would be responsible for the booking and marketing of the theater. PFM currently manages four
theater facilities.
· The Barbara B. Mann Performing Arts Hall, Fort Myers, FL - 1,753 seats.
· The Coral Springs City Centre, Coral Springs, FL - 1,534 seats.
· The North Shore Center for the Performing Arts, Skokie, IL - 839 seats.
· The Providence Performing Arts Center, Providence, RI - 3,200 seats.
175
RFP 5-97/02
April 1, 1998
Page Three
ANALYSIS: (Continued)
SMG, who has provided management services for the Convention Center and Theater since 1991,
is a joint venture company of Chicago-based Hyatt Hotels and Philadelphia-based Aramark
Corporation. Senior Vice President Thom Connors would continue to coordinate support for the on-
site General Manager, Doug Tober, and his staff.
SMG operates 26 convention centers, 19 arenas, and 6 stadiums. SMG operates almost 90% of the
exhibit space that is privately managed in the U.S., including the City of Miami Beach facilities,
with some of the larger facilities being:
· National Trade Centre, Toronto, Canada - 1,050,000 sq.ft.
· Salt Palace Convention Center, Salt Lake City, UT - 700,000 sq.ft.
· Miami Beach Convention Center, Miami Beach, FL - 503,000 sq.ft.
· New Atlantic City Convention Center, Atlantic City, NJ - 487,000 sq.ft.
· Moscone Convention Center Complex, San Francisco, CA - 442,000 sq.ft.
Additionally, SMG manages 10 theater/auditoriums. Some of the larger facilities are:
· San Francisco Civic Auditorium, San Francisco, CA - 7,000 seats.
· Memphis Dixon-Myers Hall, Memphis, TN - 4,360 seats.
· Long Beach Terrace Theater, Long Beach, CA - 3,973 seats.
· Worcester Auditorium, Worcester, MA - 3,718 seats.
· Jacksonville Times Union Center, Jacksonville, FL - 3,200 seats.
· Jackie Gleason Theater of the Performing Arts, Miami Beach, FL - 2,705 seats.
The Evaluation Committee consists of the following persons:
Bill Farkas, Performing Arts Center member, Miami Beach resident.
Jack Hartley, Tourism & Convention Center Expansion Authority Chair, Miami Beach
resident, selected as Evaluation Committee Chair.
Artie Unger, CPA, Miami Beach resident.
Raquel Vallejo, Associate Director of Development, Museum of Science.
Stu Blumberg, Convention Center Advisory Board Chair
Leo Salom, Vice President of Operations, Fontainebleau Hilton Resort.
Brad Krassner, Convention Center Advisory Board member and Miami Beach resident.
Mayra Diaz Buttacavoli, Assistant City Manager.
James Sutter, Internal Auditor.
176
RFP 5-97/02
April 1, 1998
Page Four
ANALYSIS: (Continued)
The Evaluation Committee met on March 13, 1998 to discuss the evaluation criteria for this RFP and
the scheduling of oral presentations from the two submitting proposers. (See Attachment #1). The
Committee requested the Administration to obtain a legal opinion concerning the responsiveness of
GFS' proposal. The City Attorney's opinion is attached to this memorandum. (See Attachment #2).
Mr. Stu Blumberg was not present at the March 13, 1998 meeting, but participated by telephone.
Mr. Brad Krassner and Leo Salom also did not attend the first meeting but were present for the oral
presentations from the proposers on March 20, 1998. (See Attachment #3).
Each committee member was required to sign a Conflict of Interest Disclosure Form before the
presentations were heard. Twenty-five minutes were allowed for oral presentations from each firm,
followed by approximately thirty minutes for questions and answers.
Each proposal was evaluated in accordance with the evaluation criteria listed in the Request for
Proposals. During the committee's discussion, a listing of pros and cons by each committee member
for each firm was made. The following summarizes the comments.
a. Plan for the management, operation, and maintenance of the facilities.
SMG GLOBE
Plans for management & operation based Management and operation plans
on realistic concepts and plans. based on assmnptions, some of which
were incorrect.
Is familiar with facilities and has better
understanding of the operation.
No specific plan for management of
facilities. .
Geared toward maintenance and
operation offacilities. .
b. Evidence of in-house booking, promotion and/or co-promotion capabilities and marketing,
both national and local, to expand the use of the Convention Center & TOPA.
SMG GLOBE
Marketing strategy available from SMG; Conflict between TOP A and Knight Ctr.
new marketing plan includes Cook and contract; leads for future bookings cannot
Book Show. be disclosed to other competing public
facilities operated by GFS. (See Attachment
#4).
Aggressive marketing approach.
c. Professional experience in managing similar facilities, performance and national stature of
the firm and its higher level management.
SMG GLOBE
Currently manages 92% of private facilities; Experienced in managing much smaller
26 convention centers with more than 5.5 facilities - Harborview C.C. - 65,000
million sq.ft.; two facilities larger than sq.ft.; Pueblo C.C. - 21,400 sq. ft.
M.B. Convention Center; manages 10 theaters/
auditorimns. PFM currently manages 4 theaters; most
smaller than TOP A.
177
RFP 5-97/02
April 1, 1998
Page Five
ANAL YSIS: (Continued)
d. Demonstration of financial stability of the firm.
SMG
Provided a certified financial statement; demonstrated
stability.
GLOBE
Did not provide a certified fmancial
statement.
e. Resumes outlining the experience, education, and performance record of individuals who
would be instrumental in the management and operation of the Convention Center and/or
Jackie Gleason Theater of Performing Arts, and upper-level regional or national management
personnel who will have supervisory responsibility over the Center(s). Include references.
SMG GLOBE
Staff provided evidence of excellent professional
experience with strong managerial talent.
Local manager to be assigned was not
present during oral presentation.
f.
Financial plan/Budget for each of the facilities.
SMG
Indicated how revenues could be increased;
made specific recommendations.
GLOBE
Guarantee to reduce deficit by $500,000
annually after the first year.
Offered $100,000 grant to City, which can be
used for marketing.
No experience in budgeting for facilities of
this size, no budget for TOPA.
The Evaluation Committee voted as follows:
Voter Globe SMG
Leo Salom 1
Raquel Vallejo 1
Jack Hartley 1
Stu Blumberg 1
Bill Farkas 1
Jim Sutter 1
Mayra D. Buttacavoli 1
Artie Unger 1
Total 3 5
Brad Krassner stated that he found both proposers to be equal in quality.
In accordance with the terms of the RFP, the City Manager has reviewed the Evaluation
Committee's recommendation and concurs with the recommendation ofthe committee.
CONCLUSION:
The Mayor and Commission should accept the recommendation of the City Manager, and authorize
the Administration to negotiate a contract with SMG.
SR:.
Attachments
T:\AGENDA\APRO 198\REGULAR\5-9702.MEM
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