HomeMy WebLinkAboutMemo - Waiver Competitive BiddingCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDi1M
TO: Johnny Martinez, P.E.
City Manager
FROM: Di?el Interim Director
Department of Public Facilities
DATE: November 30, 2011 PLE:
SUBJECT: Waiver of Competitive Bidding for
Management Services at the Knight
Center
REFERENCES: _
ENCL65URES:
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 Miami
Convention Center/James L. Knight International 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. International Knight
Center. This agreement is to expire, as amended, on March'31, 2012.
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 I-95 ("North Side
• assets" );'and (ii) explore the 'scerianos that conteiriplite•the redevelopment of the assets 'located
on the south side of -the 1-95 ramp ("South Side assets") and/or amending or entering into a new
lease with the Hyatt. With the exploration of these scenarios continuing and the uncertainty of
the long term use of this site, we believe it is in the best interest of the City to extend the
agreement with Global for an initial one (1) year period, with one (1) one year renewal option,
effective April 1, 2012. 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. The proposed extension would
remain effective under the terms and conditions that currently exist, effective April 1, 2012.
Per the existing agreement, Global is responsible for managing and .operating the Miami
Convention Center/James L. Knight International Center, including marketing, ticketing, event
booking,' accounting, maintenance, and capital improvements. The agreement originally included
language which established a base management fee of $97,200 plus expenses, a 120 day optional
City termination clause, and City discretion to audit accordingly. In January 2010, Global's
agreement was amended by -the City Commission to include the expanded management and
operation of approximately 35,000 additional square feet of meeting and conference, space at the
Miami Convention Center/James L. Knight International Center, an area formerly leased to the
University of Miami.
Johnny Martinez
November 30, 2011
Page 2
Due tc the University of Miami's early departure, Global's base management fee was increased
by $40,000 for a total of $137,200, which includes the management of the and operations the
Miami Convention Center/James L. Knight International Center, including marketing, ticketing,
event -booking'
accounting, maintenance, and capital -improvements and the Miami Conference
Center area.
Additionally, the, Department conducted a study and found Global Spectrum's current
management fee, as competitively bid in 1997, to be the lowest per square foot amongst other
public venues in the Southeastern United States:..
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 Miami Convention Center/James L. Knight International .
Center -to provide for an extension of the agreement for one (1) year with one (1) one year
option, effective April 1, 2012, under the same terms and conditions.
Please indicate your preference below.
rove isapproved: Dater
........................................
Jo Martinez, E. City anager
Approved / Disapproved:, Date: _2 a
K neth Robertsou!Purchasina Director