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HomeMy WebLinkAboutR-99-0388J-99-338 5/14/99 RESOLUTION NO. 9 9 a 3 S U A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE CITY MANAGER'S RECOMMENDATION TO ACCEPT THE PROPOSAL RECEIVED FROM JAIME S. ANGULO AND CESAR R. SOTO AS BEING THE MOST QUALIFIED TO PROVIDE PROFESSIONAL MANAGEMENT SERVICES FOR THE CITY -OWNED TOWER THEATER; AUTHORIZING THE CITY MANAGER TO NEGOTIATE WITH JAIME S. ANGULO AND CESAR R. SOTO; AND DIRECTING THE CITY MANAGER TO PRESENT THE NEGOTIATED AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO THE CITY COMMISSION FOR RATIFICATION AND APPROVAL. WHEREAS, the City of Miami pursuant to the City Code of the City of Miami, issued a Request for Proposals (RFP) on February 9, 1998 for the management of the City -owned Tower Theater; and WHEREAS, in response to the Request For Proposals, three proposals were received; and WHEREAS, an Evaluation Committee, appointed by the City Manager, to evaluate the qualifications and related information provided by the three proposers, finds that the proposal of Jaime S. Angulo and Cesar R. Soto is the highest ranked and most ATTACHMENT %1- CP!'Y' CO]MMSSXON MEETING OF JUN 0 Uq 1999 Resolution Na 99- 388 G qualified proposal to provide the required professional services; and WHEREAS, the City Manager, taking into consideration the findings of the Evaluation Committee, recommends the proposal of Jaime S. Angulo and Cesar R. Soto be accepted; and WHEREAS, the City Manager has transmitted to the City Commission his recommendation and has included herein the Evaluation Report from the aforementioned Evaluation Committee; and WHEREAS, the above actions and evaluation procedures have been performed in accordance with applicable City Charter and Code provisions; and WHEREAS, notwithstanding the ranking of any of the proposers, the City Commission has the discretion to eliminate any recommended proposer for any reason regardless of ranking; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The Miami City Commission hereby approves the City Manager's recommendation to accept, based on the findings of the Evaluation Committee for the Professional Management of the Tower Theater, the proposal received from Jaime S. Angulo and Cesar R. Soto, as being the most qualified to provide the professional management services for the Tower Theater, subject 7 t,- to satisfaction, in the sole discretion of the City, of the following conditions not later than July 15, 1999: a. Incorporation, pursuant to applicable laws, of the entity that will serve as the operator of the Tower Theater; b. Incorporation, pursuant to applicable laws, of a non-profit corporation to serve as a fund raising entity for the Tower Theater; C. Submission of the following to the City: (i) operating plan, including operating budget and projected financial return to the City; (ii) Financing plan; (iii) Financial strategy; (iv) Such other documents as may be requested by the City. Section 3. The City Manager is hereby authorized'- to negotiate an agreement, in a form acceptable to the City Attorney, with Jaime S. Angulo and Cesar R. Soto, for the management of the Tower Theater, taking into consideration the suggestions in the Evaluation Committee Report attached hereto and made a part hereof. Section 4. In the event that the City Manager cannot negotiate an agreement which, in the opinion of the City Manager, is fair, competitive and reasonable with the first ranked proposed, the City Manager is hereby authorized to terminate such �i The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. 3 - 99— Job negotiation and to proceed to negotiate with the second most qualified proposer(s). In the event that City Manager fails to negotiate a satisfactory agreement with the second proposer(s), then City Manager is authorized to undertake negotiations with the third most qualified proposer(s). Section 5. The City Manager is hereby directed to present the negotiated management agreement to the City Commission at its earliest scheduled meeting for its ratification and approval. Section 6. This Resolution shall become effective immediately upon its adoption and signature of the Mayor Y PASSED AND ADOPTED this 8th day of June 1999. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2.36, since the Mayor did not indicate approval of this legislation by signing it in the designated place Provided, said legislation now becomes effective with the elapse of ten (10dZ-;; regarding same, without the Mayor t*a ATTEST: WALTER J. FOEMAN CITY CLERK AS ,,FbRM &?CORRECTNESS :& TTORNEY �19379 : RCL zr If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. 4r I FOR PROFESSIONAL MANAGEMENT OF THE TOWER THEATER Prepared By: City of Miami Department of Real Estate and Economic Development April 19, 1999 89- 388 PROFESSIONAL MA, EMENT OF THE TOWER THEATER- EVALt ON COMMITTEE REPORT TABLE OF CONTENTS PAGE INTRODUCTION —2 EVALUATION COMMITTEE RECOMMENDATION 3 BACKGROUND 3 PUBLIC OUTEACH, NOTIFICATION AND. PARTICIPATION 4 RESPONSES TO REQUEST FOR PROPOSALS -- 5 PROPOSAL SUMMARIES AND ANALYSIS 5 EVALUATION COMMITTEE PROCEEDINGS RECOMMENDATIONS TO BE INCORPORATED INTO THE MANAGEMENT AGREEMENT 12 LIST OF EXHIBITS— 1. Completed Evaluation Forms 2. Evaluation Summary Sheet, Teams Ranked in Order 99- 9088 PROFESSIONAL MA XNENT OF THE TOWER THEATER- EVAL, ION COMMITTEE REPORT INTRODUCTION The City of Miami issued a Request for Proposals (RFP) for the Professional Management of the Tower Theater on February 9, 1998. The RFP sought a qualified and experienced firm for the management, operation and maintenance of the City - owned Tower Theater, located at 1508 S.W. 81' Street, from qualified commercial cinema operating firms and/or individuals. Four (4) proposals were received by the City Clerk on April 30, 1998, and transmitted to the Department of Real Estate and Economic Development (formerly the Department of Planning and Development). The Department administered the evaluation process. The Evaluation Committee for the Professional Management of the Tower Theater has concluded its evaluation,of the three (3) proposals and interviews of the teams. (One - proposer withdrew prior to the first interview.) The Committee's Evaluation Report is hereby transmitted to the City Manager Donald H Warshaw. Based on the findings of the Committee, the City Manager will present his recommendation to the City Commission as to the most qualified team to provide management services for the Theater. If the recommendation is accepted by the Miami City Commission, the Commission may authorize the City Manager to enter into negotiations with the recommended team for a management agreement. The negotiated agreement will be scheduled before the Commission for approval. Z 99- 088 11 PROFESSIONAL MA iEMENT OF THE TOWER THEATER- - EVAL. ION COMMITTEE REPORT EVALUATION COMMITTEE RECOMMENDATION The Evaluation Committee for the Professional Management of the Tower Theater has made the following recommendations to the City Manager: Mr. Jaime S. Angulo & Mr. Cesar R. Soto Cinema Theater Miami -Dade NO 1 10700 SW 881' Court Management, County Miami, FL 33176 Film Festival Mr. Santiago Hernandez, Jr., President and Ms. Regla Paz Cinema Theater City of Miami NO 2 SOUTH FLORIDA CINEMAS CORP. Management 782 NW Le Jeune Road Miami, FL 33126 Mr. Andres M. Del Campo Cinema Miami -Dade NO 3 President Theater County VALENTINO CINEMA INC. Management 8524 SW 8th Street Miami, FL 33144 Mr. Gregory von Hausch President and Executive Director • Cinema Theater Management, Fort Lauderdale, N/A Withdrew prior to THE FORT LAUDERDALE Film Festival Broward first INTERNATIONAL FILM FESTIVAL County interview, 2625 East Sunrise Blvd. Ft. Lauderdale, FL 33304 letter dated June 16, 1998, on file BACKGROUND This process is being carried out pursuant to City Code Section 18-80 on Competitive Negotiations. The City Manager appointed six (6) members to serve on the Evaluation Committee for the Professional Management of the Tower Theater. The individuals were recommended to serve on the Committee based on their professional management experience, ability, and willingness to serve. One of the appointees, Mr. Tomas Garcia Fusty, was unable to attend the first scheduled meeting of the Evaluation Committee, Therefore, Mr. Fusty was not eligible to attend any of the subsequent 3 J9- i 1 PROFESSIONAL M� ;EMENT.OF THE TOWER THEATER - EVAL, ION COMMITTEE REPORT Committee meetings. The Committee was comprised of five (5) members as listed below. The Committee met four times. City staff from the Department of Real Estate and Economic Development (REED) and the City Attorney's Office administered the process. The meetings were duly advertised and recorded. !�VALUATION. COMMITTEE MEMBER TITLE DEPARTMENT/ORGANIZATION Michael Brown President Wometco Enterprises Rem Cabrera Chief of Miami -Dade Cultural Affairs Cultural Council Development Neida Galvez Account Supervisor Department of Finance, City of Miami Nelson Gayton Producer Crayon Pictures Entertainment, Inc. Oliverio Sanchez Project Manager I Bermello Ajamil & Partners, Inc. PUBLIC OUTREACH, NOTIFICATION AND PARTICIPATION In order to receive the greatest number of qualified proposals, the Department of Real Estate and Economic Development administered an extensive mailing and notification campaign promoting the Request for Proposals for the Professional Management of the Tower Theater. In cooperation with the City's Office of Media Relations, press releases of the RFP in English and Spanish were sent through the news wire services. The Project Manager, Lilia Medina, faxed the press releases to over seventy (70) contacts in the film, theater and entertainment industries (trade publications such as Daily Variety and Backstage, production departments in film schools, cultural and tourism governmental entities). The relevant vendors from the list of the City's Procurement Department were also notified. The public notice for the RFP was listed in the City's Web Page on the Internet. The RFP document was mailed or released to nineteen (19) individual requestors as noted in the Department of REED request logs on file at the Department's offices. 4 J9- 0`s8 APROFESSIONAL MA1 rMENT OF THE TOWER THEATER - EVAL#. ON COMMITTEE REPORT B RESPONSES TO REQUEST FOR PROPOSALS The initial proposal submission deadline to the RFP was March 12, 1998. At that time, the Department of Real Estate and Economic Development reviewed two proposals _ received by that date and found them to be non -responsive in accordance with Section VI. Submission Requirements of the RFP. Therefore, the submission deadline was extended until Thursday, April 30, 1998. The two proposals mentioned above were re- submitted and two new proposals met the extended deadline. PROPOSAL SUMMARIES AND ANALYSIS The following proposal summaries and analysis is based solely on the proposal documents submitted by the three proposer teams and comments of a clarifying nature only, made at the oral presentations. In addition, the analysis addresses the information presented in response to the RFP evaluation criteria. 1. Jaime S. Angulo and Cesar R. Soto The team was ranked first by the Evaluation Committee. One member of the team has over twenty-five years experience in managing theaters such as "art house" cinemas. The other member has three (3) years of experience in coordinating and managing the Hispanic Film Festival of Miami. The program outlined in their proposal appears reasonable to meet the City's operating goals and management objectives to create a cinema and cultural facility of regional importance. At this time, the team has not yet incorporated. However, the team is proposing to incorporate into a non-profit organization. One of the members has been successful in receiving grants funding for the Hispanic Film Festival from Miami -Dade County. The team addressed the food service component of the Theater by proposing multicultural fare tied to monthly cultural events. The operating budget was based on an existing one -screen cinema and does not reflect the multi -purpose program the City supports for the Tower Theater. Without a definitive financing plan, the financing strategy and operator's financial capability cannot be assessed. The team did not respond clearly to the need for initial operating capital. The economic return to the City (management fee and percentage from gross income) needs to be further defined and appears optimistic. 2. South Florida Cinema Corp. The team was ranked second by the Evaluation Committee. The principal has over twenty years experience in managing first -run commercial cinema complexes such as Ocean Cinemas on L.eJeune Avenue. The principal has minimal experience showing foreign language films and ancillary cultural events. The principal has no f experience with non-profit organizations. The principal has some understanding of the 99- i 0O PROFESSIONAL MA iEMENT OF THE TOWER THEATER - EVAL. .'ION COMMITTEE REPORT City's operating goals and management objectives. The principal made references to the importance of the Welcome and interpretive Center and had approached a neighborhood -based development corporation. The team is incorporated but, the entity is newly formed and has no prior financial history. The operating budget was very general and appears understated. Without a definitive financing plan, the financing strategy and operator's financial capability cannot be assessed. The principal stated that the economic return to the City was minimal, at best. 3. Valentino Cinema, Inc. The team was ranked third by the Evaluation Committee. The team has extensive experience in operating first -run commercial cinemas such as Valentino Cinema on S.W. V1 Street. The team specializes in English language films with Spanish sub -titles. The team addressed the food service component by providing the regular concession offerings found in most cinemas. Although the team suggested that they would exhibit, organize and promote what the audience and market desired, the program proposed was not reasonable to meet the City's operating goals and management objectives. The team had no experience working with non-profit organizations. 'The principals appear capable of investing equity. However, without a definitive financing plan, the financing strategy and operator's financial capability cannot be assessed. The economic return to the City (management fee and percentage from gross income) needs to be further defined and appears very optimistic. EVALUATION COMMITTEE PROCEEDINGS Meeting of June 24, 1998 On Wednesday, June 24, 1998, the Evaluation Committee for the Professional Management of the Tower Theater convened at 1:00 p.m. for the first time to interview the three (3) proposing teams and evaluate their proposals. All Committee members were in attendance. The RFP for the Professional Management of the Tower Theater and copies of the three responses to the RFP had been mailed previously to all members of the Evaluation Committee on Thursday, June 18, 1998. The Evaluation Committee was tape recorded and the meeting was advertised in the Miami Daily Business Review as a public meeting and notice posted throughout the City of Miami Riverside Center Building. A summary of the June 24, 1998, proceedings is as follows: 6 99- �88 PROFESSIONAL MAP XMENT OF THE TOWER THEATER- EVALL ION COMMITTEE REPORT 1, The project name, date and committee members were introduced for the record, followed by a general briefing regarding the applicability of the "Government in the Sunshine Law" by Assistant City Attorney Julie O. Bru. The law requires that: 1) meetings of public boards must be open to the public, 2) reasonable notice of such meetings must be given, and 3) minutes of the meetings must be taken. 2. In response to a question on public notice, the Assistant City Attorney Julie O. Bru advised that additional advertisement was not required. 3. An overview of the Evaluation Committee process and the responsibility of its members was given by the staff. 4. The scope of the physical rehabilitation project for the Tower Theater, the RFP document, the City's plans and expectations for its future operation and current funding shortfalls were discussed to ensure a common level of understanding of the overall Tower Theater project. a. Several members of the Evaluation Committee expressed concerns about the competitiveness of the Tower Theater as a commercial twin cinema theater and the potential lack of financial profit these management teams would be able to obtain for the City of Miami. There was much discussion on the programming required for the theater to serve as a regional cultural center and its ability to revitalize the Latin Quarter District. 6. The Evaluation Committee was informed of the potential grant from the State expected to assist in funding for the purchase of the audio/video equipment and food preparation/concession equipment. It is important to note that each proposer team was advised by letter on July 31, 1998 that the city administration was attempting to obtain grant funds, although there was no guarantee that additional grant funds would be awarded for the equipment. The teams at the interviews were advised of the possibility of the grant not being obtained and the subsequent need to fund the equipment needs of the Theater, possibly by the selected proposer. Each team confirmed it could do so and desired to continue with the process. 7. The staff informed the Evaluation Committee of the findings and conclusions regarding each response to the RFP. None of the three teams were certified by the Office of M/WBE. Several oral and written attempts had been made to contact the teams concerning the documentation; one of the teams, South Florida Cinema Corp., has not submitted any of the requirements, the team of Jaime S. Angulo and Cesar R. Soto is not incorporated or a non-profit organization, and, therefore, is not documented, and Valentino Cinema did submit some of the forms at the interview on Wednesday, June 24, 1998 but, their submittal is not complete. 7 0 9 - � 5 0 IN PROFESSIONAL MAI EVENT OF THE TOWER THEATER - EVALL ON COMMITTEE REPORT 8. The Evaluation Committee agreed not to allot any points for the criteria "extent of Minority/Women participation" due to the ineligibility of one of the proposers and the non -responsiveness of two of the proposers. 9. The Committee then agreed to make their final decisions concerning points for the "extent of MinorityNVomen participation" on the next day of scheduled interviews, Friday, June 26, 1998, to allow. any last minute forms submitted by the proposers for certification to be filed. _ 10. Staff provided information in determining whether the firms were located within the City incorporated boundaries for the local preference category. The Evaluation Committee agreed to allocate five (5) points to the one proposer, South Florida Cinema Corp., located within the City of Miami. t.. 11. The Committee was advised that proposals were to be evaluated solely on the basis of criteria contained in the RFP (pp.12-19), and the Evaluation Criteria forms provided in the Committee's packet. 12. A question on background checks of the proposers was posed. Assistant City Attorney, Julie O. Bru, advised the committee members that the review would be done at the time of executing the management agreement between the City and the selected proposer. 13. The evaluation criteria, scoring, and ranking as established in the RFP (pp.17-19) was discussed and the evaluation forms, based on those criteria, were accepted by the Evaluation Committee. 14. Jose Casanova from the Department of Planning provided an overview of the current construction status of the Tower Theater and development in the Latin Quarter District. 15. The Evaluation Committee took an intermission at 2:50 p.m. 16. The Evaluation Committee reconvened after its intermission at 3:15 p.m. on June 24, 1998, for the first presentation by Valentino Cinema, Inc. represented by Andres M. del Campo, Cesar M. del Campo and Andrew P. Marrero. The Evaluation Committee individually evaluated each proposal and held open discussions regarding the expertise and benefits of each proposal. 17. The members of Valentino Cinema, Inc. gave their presentation, which ended at 4:05 p.m. s tr.. I PROFESSIONAL MAA eMENT OF THE TOWER THEATER - EVALL ON COMMITTEE REPORT 18. The Assistant City Attorney advised the Evaluation Committee of the rules and requirements of the State Sunshine Law. 19. The team headed by Jaime S. Angulo and Cesar R. Soto presented its presentation at 4:15 p.m. 20. At the conclusion of each presentation, Committee members posed questions to each team member. 21. Between presentations and at the conclusion of all presentations, the Committee held discussions on the merits of the teams, their range of expertise and experience, and their ability to meet the City's objectives and plan for the Theater. 22. The Evaluation Committee adjourned at 4:55 p.m. to reconvene on Friday, June 26, 1998, at 1:00 p.m. Meeting of June 26, 1998 On Friday, June 26, 1998, the Evaluation Committee met a second time to conduct the interview of the third proposer at 1:20 p.m. All members of the Committee were in attendance. Although two representatives, Rosario Kennedy and Carlos Martell, of the team of South Florida Cinema Corp. made the interview on time which began at 2:20 p.m., the principal team members, Santiago Hernandez, Jr. and Regla R. Paz, listed in the proposal were not able to attend the interview for personal reasons. The Committee decided to begin the interview and asked general questions until 2:50 p.m. On the subject of programming and financing, the Committee determined that the principal team members needed to be present for a thorough presentation. The Committee decided not to rank the third proposer until another interview with the team was scheduled. The Committee determined it would reconvene the first week in September to complete the process. The staff of the City of Miami attending the Evaluation Committee meeting on June 26, 1998, were the following: Arleen R. Weintraub, Assistant Director; Lilia Medina, Project Manager; Janet Watson, Project Representative from the Department of Real Estate and Economic Development; Julie O. Bru, Assistant City Attorney, Law Department; Marva L. Wiley, M/WBE Supervisor, Purchasing Department, Minority/Women Business Affairs Office; and Jose Casanova, Planner II, Department of Planning. 9 i I4' 29— cl8J ko wo PROFESSIONAL M< pEMENT OF THE TOWER THEATER - EVAL ION COMMITTEE REPORT Meetinas of March 11 and 23, 1999 On Thursday, March 11 and Tuesday, 23, 1999, the Evaluation Committee for the Professional Management of the Tower Theater convened to conduct the final presentation and interviews of the evaluation process for professional management _ services. All members of the Committee were in attendance on both dates. The three teams were invited to make presentations. The Committee meeting was advertised as a public meeting in the Miami Business Review. Notices were also posted and the proceedings were recorded. The project, date and committee members were introduced for the record. On March 11, 1999, at 9:00 a.m. the Committee convened to interview two of the three teams for the final presentation, the proceedings are as follows: Erdal Donmez, Director, Department of Real Estate and Economic Development provided the status of the project, assisted by Lilia Medina, Project Manager. The evaluation process was then reviewed by the committee members and staff for clarity. Each Committee member voiced strong reservations as to the proposals that were received. There are huge gaps in each response to the RFP. There are major differences between the proposals and vision of each of the teams. The Committee agreed strongly that the most viable vision for the management of the Theater would be a multi -component programming plan that would make the Theater a dynamic venue to function as a destination point for tourists and residents from throughout the County. It was then suggested that the City incorporate a mechanism such as a foundation or a non-profit organization with aggressive fundraising experience in cultural and special events. One Committee member suggested an educational partnership with the universities of UCLA and FIU. Most importantly, the Committee was concerned about the start up cost of the facility, and questions on these issues were directed to each proposers during the interview. The team of Jaime S. Angulo and Cesar R. Soto was interviewed between 10:30 a.m. to 11:15 a.m. The team of Valentino Cinema, Inc. was interviewed between 11:30 a.m. to 12:15 p.m. A brief discussion of the parking issues was discussed by the Committee. A summary of the Committee's concerns and questions that were directed to the proposers are as follows: 1. What was the proposers vision in their programming, operations, fundraising, marketing and promotions relative to the greater community and audience? 10 99`61 0U8 0 1 PROFESSIONAL MAA :MENT OF THE TOWER THEATER - EVALL :)N COMMITTEE REPORT 2. How much are the proposers willing to commit financially to the project? 3. What are some of the initiatives that could be used in the days the theater isn't being utilized as a twin -screen cinema? 4. What are their intentions towards programming the Welcome and Interpretive Center? 5. Who would be managing the food service component? 6. Who will be overseeing the operation on a daily basis? 7. Would they be looking for subsidies from the City since the theater may not be commercially viable? 8. How much are they expecting to receive from this venture? 9. What is their backup plan in worst case scenario? 10. How long would it take to break even? 11. How much would be the compensation to the City? In between presentations and at the conclusion of all presentations, the Committee discussed the merits of each team and their range of expertise and experience. Meeting adjourned at 1:55 p.m. On March 23, 1999, the Committee convened at 9:00 a.m. to interview the third team, South Florida Cinema Corporation, Inc. Lilia Medina, Project Manager, reviewed the evaluation process of the previous Committee meeting of March 11, 1999. She also updated the Committee on the physical rehabilitation of the Theater and floor plans, expected funding for the audio/visual and concession equipment, status on the substantial completion of the rehabilitation of the Theater and distributed a memorandum from Ilene Temchin, Assistant City Attorney on alternatives for the evaluation recommendations. Effie McCartney, Assistant to the Director, Purchasing Department, relayed information regarding participation by minority and/or women -owned business enterprises (M/WBE). None of the proposer teams were certified for M/WBE participation and no points were assigned to the three teams. The team of South Florida Cinema Corporation, Inc. was given points for having an office located within the corporate City limits, as noted in the RFP. These decisions are reflected in the Committee's Evaluation forms. South Florida Cinema Corporation, Inc. was interviewed between 10:30 to 11:15 a.m. after which the Committee completed its scoring and ranking on individual evaluation forms for the three proposer teams. The forms were signed and dated (see Exhibit 1). All totals were verified by staff. 99-- 88 PROFESSIONAL MA, EMENr OF THE TOWER THEATER - EVAL ION COMMITTEE REPORT The ranking of each team was announced publicly by each Committee member and recorded in the Ranking Summary form by staff. Each Team's new total score was ranked based on the highest score receiving a rank of #1, the next highest score a rank of #2, and next the rank of #3. (see attached Evaluation Summary Sheet, Exhibit 2) The Committee's final rank order recommended to the City Manager is as follows: #1 Jaime S. Angulo and Cesar R. Soto. #2 South Florida Cinema Corporation, Inc. #3 Valentino Cinema, Inc. RECOMMENDATIONS TO BE INCORPORATED INTO THE MANAGEMENT AGREEMENT The Committee recommends the following (not in any order of importance) based on the proposers written and oral responses to the Committee's review and interviews: 1. An advisory board should be created to oversee the operation of the Tower Theater. This should be done before agreement negotiations. If it is agreed that a non-profit organization manages the Theater, the organization creates the advisory board. In negotiations on the agreement, the City may request that a member of the. board be represented by the City. 2. City should assess the future mission of the Theater, not as a commercial first -run cinema facility, but as a destination for multi -component programming for tourists and residents from throughout Miami -Dade County. 3. City should provide a copy of the budget and specifications for the audio/visual equipment to the selected proposer for review and input. 4. Audio/visual equipment must meet the needs of the varied programs and activities that may be scheduled at the Theater, and the equipment should be considered as part of the revenue wherein it can be sold or depreciated overtime. 5. City should establish a partnership with the selected operator relating to the Welcome and Interpretive Center. 6. Terms of agreement may specify clauses in the criteria stipulating that if after two years no funds are generated, the City is entitled to contract with another operator. The two year period may not be enough time for a new organization and venue to be established. 7. City should request a personal guarantee from the selected operator. S. City should have access to the theater under specific terms and conditions. 9. City needs to clarify exactly what is needed in a non-profit 501(c)3 organization. A workshop could be scheduled to review these issues with the selected operator, the City, the Evaluation Committee and maybe other 12 29- 388 t -V-- PROFESSIONAL MAP. EMENT OF THE TOWER THEATER- EVALL ON COMMITTEE REPORT relevant users of the Theater. The non-profit organization may be independent to operate the cultural events and programming. 10. Selected operator will need to seek foundation grants. 11. Suggested a cut off point in the financial capability of the proposer in order to negotiate the agreement. 12. A minimal Management Fee for rent per the financial strategy noted in the RFP should be written into the agreement. 13. City should hold a neighborhood town meeting to update the area residents on the status of the entire Theater project. 14. The selected operator should consider renting the theater for screening dailies to the film industry, since this type of venture is in high demand. The selected operator may run a retrospective cinema house that showcase old movie classics on a regular basis. Meeting adjourned at 12:30 p.m. The staff of the City of Miami attending the Evaluation Committee meetings on March 11 and 23, 1998, were the following: Erdal Donmez, Director; Arleen R. Weintraub, Assistant Director; Lilia Medina, Project Manager; Janet Watson, Project Representative from the Department of Real Estate and Economic Development; Ilene Temchin, Assistant City Attorney, Law Department; and Effie McCartney, Assistant to the Director Supervisor, Purchasing Department, Minority/Women Business Affairs Office. 13 � W ZIO 19N City of Miami, Department of Planning & Development — (--am PROFESSIONAL MANAGEMENT OF THE TOWER THEATER EVALUATION C.A REFERENCE. Crty of Miami Code, section 18.80 Instn,cbons Earn member of the Evaluation Committee will evaluate Individual team proposals and Indicate a numerical score In the appropriate column for each crttede. PROJECT Professional Management of the Tower Theater EVALUATION CRITERIA ft/fil, Aulg,od Team Designation Andres M. Del Campo Valentino Cinema, Inc. Jaime S. Angulo & Cesar Soto Santiago Hemandez South Florida Cinema Co. General management/operation -qualifications and experience in cinema, stage events, exhibit planning and concessions services. ',23 f -� Operator's financial capabilitiy. Financial strategy which provides for the Management Fee.to be derived from Net Income and provides a Percentage from Gross Income after a certain breakpoint, to be paid to the City. t2O /) Compatibility of operating and management plan to operating 10 goals and management objectives. ll C; Extent of Minodty[Women participation. 5 Local preference, if applicable. 5 U /) TOTAL 100 RANK113 , 1. I Commmw Member Name: �� �� �(� l' :�!•"! C>0 Committee Member signs a., 00 � . Dare: Page 'W City of Miami, Department of Planning & Development a�- M61r _ PROFESSIONAL. MANAGEMENT OF THE TOWER THEATER EVALUATION REFERENCE City of Miami Code, Section 18.80vd InstranS Each member of the Evaluation Committee will evaluate Individual team proposals and Indicate a numerical score In the appropriate column for each criteria. PROJECT Professional Management of the Tower Theater EVALUATION CRITERIA Port, Team Designation A..y,,.d Andres M. Del Campo Jaime S. Angulo Santiago Hernandez Valentina Cinema, Inc. &Cesar Soto South Florida Cinema Co. General management/operation -qualifications and experience in cinema, stage events, exhibit planning and concessions services. -z-3 L Operator's financial capabilitiy. l� 15 1 Financial strategy which provides for the Management Fee to be 20 derived from Net Income and provides a Percentage from Gross Income after a certain breakpoint, to be paid to the City. G v ,r �-r-4rJ• Compatibility of operating and management plan to operating 10 goals and management objectives. Extent of MlnorityNVomen participation. 5 U O Local preference, if applicable. 6 _ 5 TOTAL 100jj R C: 1 Committee ember Name: 1�{\\t L S• 0 A ('3 �r Committee Member Signature: Date: 1 Pape RANKM L[ 11 City of Miami, Department of Planning & Development PROFESSIONAL MANAGEMENT OF THE TOWER THEATER EVALUATION REFERENCE City of Miami Code, Section 18.80 Instrumons Eacn memoer of the Evaluation Committee will evaluate individual team proposals and Indicate a numerical score In the appropriate column for each criteria. PROJECT Professional Management of the Tower Theater C►/AI IIATink! POIT9PIA I o,,,,,,. I Team DesignaUon Assigned Andres M. Del Campo Valentino Cinema, Inc. Jaime S. Angulo & Cesar Soto Santiago Hernandez South Florida Cinema Co. General managementloperation - qualifications and experience in cinema, stage events, exhibit planning and concessions services. 30 Subtotal Operator's financial capabilitiy. 30 Subtotal .'ry i+A�d �l "' ii Cii ?/+ roii�i3::„ed . v' .• i Financial strategy which provides for the Management Fee to be derived from Net Income and provides a Percentage from Gross income after a certain breakpoint, to be paid to the City. 20 0 �� Subtoial `' i�#ti r J'It�.4rtYt:"`•\'�.4b1.',': �p :..•.'::. :, Compatibility of operating and management plan to operating goals and management objectives. 10 J� Subtotal {:' 1� lr ca;•' Extent of Minority/Women participation. 5 G� Subtotai 7.0.77177"'¢7x°Z).7 :�i' r'V" i E Local preference, if applicable. 5 Subtotof �'.ja3i'<itll 3 nRA. <, 'iil17' >�+ 'A 7 TOTAL 100 RANK C2 Cif C� Commffee Member i Committee Member GO Page 0 t' City of Miami, Department of Planning & Development PROFESSIONAL MANAGEMENT OF THE TOWER THEATER Nl �l T Z ~ EVALUATION REFERENCE. Crty of Miami Code, Section 18.80 instructions E&M member of the Evaluation Commitlee will evaluate IndNldusl team proposals and Indkate a numer{cat score In the appropriate column for each crfleria. PROJECT' Professional Management of the Tower Theater EVALUATION CRITERIA Point. Team Designation Autgned Andres M. Del Campo Jaime S. Angulo Santiago Hernandez Valentino Cinema, Inc. & Cesar Soto South Florida Cinema Co. r eneral managemendoperation - qualifications and experience cinema,stage events, exhibit planning and concessions I� Z 7 '4- ervices. 7 Operators financial capabilitiy. 30�S Financial strategy which provides for the Management Fee to be 20 derived from Net Income and provides a Percentage from Gross Income after a certain breakpoint, to be paid to the City. i Compatibility of operating and management plan to operating 10 goals and management objectives. s Extent of MinorityMomen participation. 5 Local preference, if applicable. 5 :... ;stir, ' tr .�+t•� s'; • TOTAL 100 43 RANK I C.A ,3 �tC� YlON CommrtfeeMemberName: itiBe Member Signature: Date: 3 ^ 23 - �? Page Ir 114 City of Miami, Department of Planning & Development PROFESSIONAL MANAGEMENT OF THE TOWER THEATER EVALUATION REFERENCE City of Miami Code, Section 18.80 tnstrucxans Each member of the Evaluation Committee will evaluate Individual team proposals and Indicate a numartcal soore In the appropriate column for each oriterta. PROJECT Professional Management of the Tower Theater EVALUATION CRITERIA Polnta ream Designation Assigned Andres M. Del Campo Jaime S. Angulo Santiago Hernandez Valentino Cinema, Inc. & Cesar Soto South Florida Cinema Co. General managementloperation - qualifications and experience in cinema, stage events, exhibit planning and concessions - ^ services. Operator's financial capabilitiy. 3 Financial strategy which provides for the Management Fee.to be 20 derived from Net Income and provides a Percentage from Gross Income after a certain breakpoint, to be paid to the City. Compatibility of operating and management plan to operating 10 goals and management objectives. Extent of Minority/Worrten participation. 5 Local preference, if applicable. 5 .41 s T07AL 100 RANK I � Commdt" Member Name: �C61JeyyD �jGGNG L = G0) Corruninee Member Signature: Dare: 3 As /5-V Page _ ty� 1.. 0 m G'f ry n 0 CIO 00 City of Miami, Department of Planning & Development PROFESSIONAL MANAGEMENT OF THE TOWER THEATER EVALUATION SUMMARY SHEET COMMITTEE MEMBERS Oliverio Sanchez _ Michael Brown Rem Cabrera Nelson Gayton Neida Galvez _ TOTAL FINAL RANK Andres M. Del Campo Valentino Cinema Date: 3- A 3 ^ , Fg— inking Summary Jaime S. Angulo &Cesar Soto 4t.2 Santiago Hernandez South Florida Cinema Co. 4- FZ 3�a3�9g t' CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and Members of the City Commission FROM: DonaHWarshaw City Manager RECOMMENDATION DATE: r - FILE SUBJECT: Tower Theater Professional Management Recommendation REFERENCES: For Commission Meeting of ENCLOSURES: June 8, 1999 It is respectfully recommended that the Miami City Commission adopt the attached Resolution approving the City Manager's recommendation to accept the proposal received from the team of Jaime S. Angulo and Cesar R. Soto, based on the findings of the Evaluation Committee as being the most qualified team to provide professional management services for the City -owned Tower Theater; authorizing the City Manager to negotiate with the team of Jaime S. Angulo and Cesar R. Soto; and, directing the City Manager to present the negotiated agreement to the City Commission for ratification and approval. The attached Resolution specifies conditions to be met no later than July 15, 1999 by the recommended team to enable negotiations of an agreement to proceed, subject to satisfaction in the sole discretion of the City. EVALUATION PROCESS FOR PROFESSIONAL MANAGEMENT SERVICES The Department of Real Estate and Economic Development administered the evaluation process for professional management services of the Tower Theater and has prepared the attached documentation. As required by the City of Miami Code Section 18.80 on Competitive Negotiations, the Department convened an Evaluation Committee appointed by the City Manager to evaluate the qualifications and related information provided by the three teams responding to the City's Request for Proposals (RFP) for the Professional Management of the Tower Theater. The Evaluation Committee met four times and recommended to the City Manager the team of Jaime S. Angulo and Cesar R. Soto as the highest ranked team and as most qualified to provide the required professional services for this project, subject to the team meeting the following conditions not later than July 15, 1999, to enable negotiations of an agreement to proceed in a timely manner: 1. Incorporation of the entity that will serve as the operator of the Tower Theater 2. Incorporation of a non-profit corporation to serve as a fund raising entity 99- �68 L 5 The Honorable Mayor and Members of the City Commission Page 2 3. Submittal to the City of the following: (a) Operating plan, including operating budget and projected financial return to the City (b) Financial plan (c) Financial strategy (d) Such other documents as may be requested by the City BACKGROUND The Theater is not designed to operate solely as a twin -screen commercial cinema since it was acquired by the City in 1991 as the centerpiece of economic rehabilitation plans for the Latin Quarter. As noted in the RFP, the City identified the following operating goals and management objectives for the Theater: • To create a cinema and cultural facility of regional importance that will attract local residents and visitors to a diverse and unique program • To create a space for specialty events promoting the cinematographic arts • To create a Welcome and Interpretive Center to educate the public on Little Havana and the Cuban exile • To rehabilitate the Theater as a means for economic and cultural revitalization of the Latin Quarter and greater community • To establish a management organization at the professional level of service providing diverse cinematic programs and cultural events • To manage the Theater in an efficient manner to fully support the annual cost of operation while maintaining a professional level of service • To program the Theater to stimulate retail activity in the area and promote economic investment and job development This complex project requires a management organization experienced in operating a cinema facility and, more importantly, to create a destination for multi -component programming for tourists and residents from throughout Miami -Dade County. In order to receive the greatest number of qualified proposals, the Department of Real Estate and Economic Development administered an extensive mailing and notification campaign promoting the RFP. The three teams that responded to the RFP, through the evaluation process and interviews directed by a highly professional Evaluation Committee, are aware of the programming, operations, fundraising, marketing and promotional issues necessary to guarantee a viable Theater. r 99- 388 The Honorable Mayor and Members of the City Commission Page 3 The City expects the selected operator to meet and successfully integrate the functions of three major components (twin -screen cinema, Welcome and Interpretive Center, and food service) and, an operating program that is based on the above City goals and management objectives. The City, in return, has contributed $2,750,600 to physically rehabilitate the historic Tower Theater. B/ED/ARW/LIM 99- 388 IM.