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HomeMy WebLinkAboutMemo 1CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO : FROM Pedro G. Hernandez City Manager ( Laura L. Bib y, Director Department of Public Facilities DATE : FILE : June 12, 2007 SUBJECT : Waiver of Competitive Bidding for Management Services at the Knight REFERENCESCenter ENCLOSURES: This memorandum serves to request your authorization to seek Commission approval to waive competitive bidding procedures and further extend the existing Management Agreement with Global Spectrum Limited Partnership ("Global") for management and operation of the James L. Knight Center, in accordance with Section 18-85 of the City of Miami Code. Resolution #97-662, approved by the City Commission on September 23, 1997, authorized the City Manager to enter into a management agreement with Global to provide professional services for the management of the Miami Convention Center/James L. Knight Center. This agreement is scheduled to expire on September 30, 2007. On May 10, 2007, the City Commission authorized the City Manager to: (i) prepare an invitation for bid for the sale of the city -owned property located on the north side of 1-95 ("North Side assets"); and (ii) explore the scenarios that contemplate the redevelopment of the assets located on the south side of the I-95 ramp ("South Side assets") and/or amending or entering into a new lease with the Hyatt. With the exploration of these scenarios underway and the uncertainty of the long term use of this site, the administration believes it is in the best interest of the City to extend the agreement with Global for an initial six (6) month period. If at that time, plans for the site are developing such that the facility in its current form would not be operational for an extended period of time, we propose that the City Manager have the authority to exercise the renewal options. If plans are not progressing as such and the City anticipates the site remaining status quo for an extended period of time, the administration would proceed in rebidding these management services. The proposed extension would remain effective under the terms and conditions that currently exist, effective October 1, 2007. Per the existing agreement, Global is responsible for managing and operating the James L. Knight Center, including marketing, ticketing, event booking, accounting, maintenance, and capital improvements. The agreement includes language which establishes a base management fee of $97,200 plus expenses, a 120 day optional City termination clause, and City discretion to audit accordingly. Pedro G. Hernandez June 12, 2007 Page 2 Based on the foregoing, we request your approval to seek Commission authorization to waive competitive bidding procedures and amend the existing Management Agreement with Global for management and operation of the James L. Knight Center to provide for an extension of the agreement for six (6) months with three (3) one (1) year options, effective October 1, 2007, under the same terms and conditions. Please indicate your preference Disapproved: Pedro G. H (pprove isapproved: G1e z, City Manager aPpt chasing Director Date: /7.49/07 Date: