Loading...
HomeMy WebLinkAbout13- Administrator's Office CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION From: Fred Wilson, City Administrator Subject: Request for Qualifications - Stadium Marketing/Facility Dept: Administrator ' s Office OGIN Operations Manager Date: May 18, 1998 �' A L Synopsis of Previous Council action: 03/18/98 -- Ways and Means Committee takes no action on this item, pending completion of the 'Stadium audit . 05/20/98 -- Recommended for approval by Ways and Means Committee Request for Qualifications for a stadium marketing/ facility operations manager for the San Bernardino Stadium. Recommended motion: Approve the Request for Qualifications for a stadium marketing/facility operations manager for the San Bernardino Stadium. Signature Contact person: Fred Wilson Phone: 5122 Supporting data attached: Yes Ward: 3 FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.) (Acct. Description) Finance: Council Notes: 75-0262 Agenda Item No. STAFF REPORT Background On March 18, 1998, the Ways and Means Committee discussed various issues concerning the management of the San Bernardino Stadium. Information was also provided concerning past actions regarding stadium management (Attachment A) . It was recommended that a contract be considered with a full service management company to both manage and market the stadium. The Committee tabled this item pending completion of the stadium audit . That audit has now been completed. Request for Qualifications : Stadium Marketing/Operations Manager Parks Superintendent Ed Yelton and Purchasing Manager John Murphy have developed a Request for Qualifications (RFQ) for a contractual marketing and operations management service for the stadium (Attachment B) . The RFQ is structured so that respondents can propose to provide marketing services, stadium operations management services, or both. The Mayor and Council retain the right to accept or reject either or both portions of a given proposal , so that the city has maximum flexibility. The RFQ will be released upon approval of the Mayor and Council . The vendor list will include all respondents to the first RFP released by the previous administration. The list of these respondents is attached (Attachment C) . Recommendations It is recommended that the Committee approve the RFQ for a stadium marketing/facility operations manager for the San Bernardino Stadium. Attachment A C I T Y O F S A N B E R N A R D I N 0 INTEROFFICE MEMORANDUM CITY ADMINISTRATOR' S OFFICE DATE : March 12 , 1998 TO : Mayor Judith Valles FROM: Fred Wilson, City A strator SUBJECT: Stadium Management *0 ------------------------------------------------------------------- At the direction of former Mayor Minor, Ray Salvador, former Assistant to the Mayor, served as Interim Stadium Manager for the last 18 months . In the Fall of 1996, Mr. Salvador was directed by the Mayor to send out a Request for Qualifications for a Stadium Manager. Advertisements appeared in the local newspapers, the Los Angeles Times, and the major trade journal, the International Association of Assembly Managers Journal . Approximately twenty individuals and management companies responded. A Committee composed of Mayor Minor, Tim Steinhaus, Lorraine Velarde, and Ray Salvador reviewed the responses and narrowed them down to approximately six qualified respondents . Subsequently, it was deemed that all of the options presented were too expensive, and the option of using a local vendor with extensive experience in facility management and special event security for $25, 000 per year, plus 200 of the net revenue from any vendor-secured events, was presented to the RDA Committee on March 11, 1997, and voted down. In the Fail of 1997, at the direction of the Mayor, a new RFQ for a stadium marketing manager was sent cut to previous respondents as well as advertised in local papers (see Attachment A for comprehensive listing of respondents) . The RFQ stated that the City was seeking "to contract with an experienced facility promoter to market the stadium on a year-round basis and bring in other uses/events in order to provide additional revenue and exposure for this redevelopment project area. " The responses were then evaluated for qualifications and the 'list was narrowed to four. Of the four entities invited to interview, two declined. As a result of this process, the following options for Stadium management were considered: 1; Contract with Professional Management Company to provide full-service event management for the facility - Centennial Management Group was interviewed in the Fall of 1997 . Centennial is a Professicnal Group based in West Valley City, Utah. The compa.^.-_; was established in the Fall of 1996 , however, the principals of the company have experience in the sports and entertainment industries . Thev currently have a twenty-five rear full management contract for the 13 , 000 seat "E" Center of West Valley City, Utah dhome of the Utah Memo to Mayor Valles March 12 , 1998 Page 2 Grizzlies International Hockey League team) when they have over 120 events planned annually. The company also provides management consulting for the Detroit Opera House, a 2 , 800 seat theater opened in April of 1996 . Proposed Cost for full-service event management of the City of San Bernardino multi-use Stadium: $8 , 000 per month ($96, 000 annually) , plus an incentive fee of 100 of gross revenues generated on the City' s behalf from the operation of the Stadium for uses other than Stampede baseball . Scope of responsibility: Management function encompasses operations, booking, marketing, personnel, contract management, event generation, event management, sales, financial, and administrative management . No revenue generation guarantees . 2) Contract with a Marketing Professional - The Committee also interviewed Rene Guy Boisvert in the Fall of 1997 . Mr. Boisvert is a marketing professional out of Oakland, California, who has worked in the entertainment/event and sports related industries since 1980 . Proposed Cost : $60, 000 - $70 , 000 annually Scope of Responsibility: Experienced facility promoter to market the stadium on a year-round basis to bring in other events/uses in order to provide additional revenue and exposure . In conjunction with City, Marketing Manager would compile a marketing plan with performance thresholds for review at end of each contract year. Focus on development and implementation of creative marketing processes and programs to increase sales volume and improve profitability of the Stadium. Again, there are no revenue generation guarantees . A City employee dedicated -o handling the day-to-day operations of the stadium facility on site would be required should this option be selected. 3 ) Hire City employee to provide on-site facility management, and perform as facility promoter to market the stadium on a year- round basis and bring in other uses/`events . Anticipated Cost : $50 , 000 - $ '0 , 000 annually Memo to Mayor Valles March 12 , 1998 Page 3 As a point of reference, three Cities in our area that have municipal stadiums are operating under the following scenarios : Lake Elsinore: Currently in negotiations with TMC Development Company for full stadium maintenance, operation and event scheduling. Under the new contract, there would be no cost to the City. Revenue to the City ($75, 000 per year in years 1-5, and $150, 000 annually, years 6-15) to be placed in city capital reserve account for stadium repairs . Lancaster: City contracts with a part-time person 4-5 hours per day (paid for through transient occupancy tax) to market and promote the Antelope Valley to the film industry, coordinate logistics with the film crews . Contract with Baseball Club brings in $300 , 000 per year. Of this amount, $161, 000 is paid by the team for city staff (three full time; fifteen part-time employees) to provide ballfield, custodial and stadium cleanup and utilities during baseball season. The balance ($139, 000) of the contract amount is applied to debt retirement . During the off-season (September-February) the stadium is treated like any other park facility with maintenance and operations expenses (two full-time employees) budgeted through the Parks Department budget . Off-season revenue last year totaled $40 , 000 . Rancho Cucamonga: Management under Community Services Department . Maintenance under Public Works Department . Professional promoter hired on fee basis 'for large community events . Marketing efforts limited to promotional packet paid for with redevelopment funds ; letters to movie industry, local community brochure, speaking engagements and local cable television. City Subsidy - $159 , 000 per year . Memo to Mayor Valles March 12, 1998 Page 4 The San Bernardino Stadium is currently being maintained on an interim basis by the Parks, Recreation, and Community Services Department under the direction of Annie Ramos . Upon consulting with Ms . Ramos and former Assistant to the Mayor, Ray Salvador, and in light of the identified stadium management options, it is my recommendation that we contract with a full service management company to manage the facility. Further, I recommend that this issue be forwarded to the Ways and Means Committee for review. If you concur, I will see that the item is placed on the next scheduled Ways and Means Committee agenda. f Attachment 3 D§H�7 REQUEST FOR QUALIFICATIONS STADIUM MARKETING/FACILITY OPERATIONS MANAGER I . INTRODUCTION The City of San Bernardino, with a population of 184 , 000 , has developed a 5 , 000 seat, multi-use stadium which is currently in its second full year of operation. The primary tenant is the San Bernardino Stampede, a Class A minor league baseball team affiliated with the Los Angeles Dodgers . The Stampede schedule is comprised of 70 home games played between April and September. The stadium is designed to host other sports activities such as football and soccer, and can accommodate entertainment activities such as concerts, rodeos and has been used for television commercials . Additionally, the facility includes a 1, 700 space fully improved parking lot which can be used for auto/RV/boat shows . II . REQUEST FOR QUALIFICATIONS AND PROPOSALS The City desires to contract out the operations and marketing of the city stadium. In that regard, the City is requesting qualifications and proposed plans from interested parties . Currently, the City maintains the playing field. All landscape and hardscape areas and custodial services are contracted out . The City will receive proposals for either a Marketing Plan or a Stadium Operations Plan as separate items or you may propose a plan for both marketing and operations . III . SCOPE OF SERVICES 1 . Marketing Plan: Develop and implement a marketing plan booking events and provide management control over events to include, but not limited to: production requirements, contractual and insurance considerations, ticketing, financial management, security coordination, facility preparation and restoration, food and beverage and merchandising services, general logistical event coordination and client communication. 2 . Stadium Operation : Provide proposal and indicate your knowledge of the tasks involved in daily stadium operations to include : inspection and 1 maintenance of playing field, lighting and lighting fixtures, plumbing and appurtenant fixtures, seating, sky boxes, parking lots, landscape and hardscape, custodial services, and any related operational areas such as dugouts, dressing rooms, concessions areas, offices, public common areas, elevators, etc . Should your plan include sub- contracting the- various services, provide, along with your own, the qualifications of the sub- contractors . In addition, please respond to how you would deal with "after hours" service calls and give your definition of "after hours" operations . IV. CRITERIA FOR SELECTION The contract will be awarded to the most qualified individual , firm or team of firms . The Stadium Marketing/Facility Operations Manager must be able to demonstrate compelling ability to meet the following criteria in providing the services necessary for the facility. 1 . Have the adequate technical and financial resources for performance . Such resources shall include sound administrative, financial and marketing services . 2 . Have a positive record of performance on past facility projects . 3 . Ability to ensure the integrity of each event so as not to tarnish the facility reputation throughout the community or its reputation among event promoters . 4 . Ability to manage and market the entire facility including the surrounding parking areas for events . S . Ability to create the proper image for the stadium and to ensure the high standard of upkeep to maintain the facility and the playing field. 6 . In a separate sealed envelope, provide a cost estimate for services . The estimate should include the percent for incentive fee . V. SUBMISSION REQUIREMENTS 2 Respondents shall submit two (2) copies of qualifications containing the following information: 1 . A brief introduction of the proposed individual/team arrangement that identifies each member, as well as organization and relationship structure . 2 . Identify experience on facilities of comparable size and scope . Provide owner names, addresses and telephone numbers, size and description of facility, cost and specific role/services performed. 3 . Identify key personnel who will be assigned to this facility including summaries of qualifications and relevant experience . 4 . Response will first be reviewed without consideration of the cost proposal . After the initial selection is made based solely on qualifications, the most qualified offeror (in the City' s exclusive estimation) will review/justify the cost proposal with a city representative . If an agreement cannot be reached, the next best qualified offeror will be considered etc . VI. SUBMITTAL INFORMATION All questions relating to this request for qualifications should be directed to : John Murphy, Purchasing Manager at (909) 384-5085 . VII . LIMITATIONS 1 . All information and materials submitted will become the property of the City. Individual/Firms should not submit proprietary or confidential business information unless they believe such information is critical to the presentation. Proprietary information should be clearly identified as such. The City will protect such proprietary or confidential information to the extent the law allows . 2 . This request for qualifications does not commit the City to award a contract or to pay any costs 3 incurred in the preparation of response to this request . 3 . The City reserves the right to accept or reject any or all proposals received as a result of this request; to negotiate with qualified Stadium Marketing/Facility Operations Managers, or to cancel in part or in its entirety, this request for qualifications, if it is determined to be in the best interest of the City to do so. VIII . PROPOSAL SCHEDULE Proposal Submittal Deadline : Target Date for Selection of Stadium Marketing/Facility Operations Manager Target Date for Contract to Start IX. CONTRACTUAL REQUIREMENTS The successful respondent will enter into a contract with the City to provide Stadium Marketing/Facility Operations Management services as proposed. The requirements for a contract include : 1 . Proof of insurance for workers compensation, disability benefits, comprehensive general liability of $1 million; comprehensive auto liability of $1 million and provide to the City a certificate from the insurance company naming the City as additional insured. 2 . The length of the contract shall be negotiated with the selected Stadium Marketing/Facility Operations Manager. 3 . Appropriate business license as required by the San Bernardino Municipal Code . EY/tjg STADIUM 4 Attachment C SAN BERNARDINO STADIUM RESPONSES TO INITIAL REQUEST FOR QUALIFICATIONS Colin Bissett and Associates - Waverly, PA William J. Boggs - Treasure Island, FL Rene Boisvert - Oakland, CA Catalyst Management Group - Yucaipa, CA Terri J. W. Carlos - San Bernardino, CA Centennial Management Group, Inc. - West Valley City, UT Anthony Davis/Associates Entertainment Services - Bloomington, CA Paula Fogg - San Bernardino, CA Robin Garb - Malibu, CA Garrett Management Enterprises - San Bernardino, CA Andy Gray - San Bernardino, CA John LeCompte - Alta Loma, CA Elizabeth (Libby) Lesch - Oklahoma City, OK James R. Markham - Grand Terrace, CA John Mazzola, CFE - Tampa, FL National Orange Show - San Bernardino, CA San Bernardino Convention & Visitors Bureau - San Bernardino, CA Murray A. Sislen - Utica, New York Garrett Saracho - Montebello, CA Michael Scafuto (Mt. High Entertainment) - Alta Loma, CA Michael Schetzel - Savannah, GA Tom Scharf - Highland, CA Leslie Ann Sonnenklar - Houston, TX David Venerose, Jr. - Youngstown, OH James J. Wehmeier - San Antonio, TX Sylvana M. Zermeno - Colton, CA