Loading...
HomeMy WebLinkAbout38- City Administrator's CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION From: Fred Wilson, City Administrator Subject: Management and Marketing of the San Bernardino Stadium Dept: City Administrator ' s Office Date: September 28, 1998 ORIGINAL Synopsis of Previous Council action: June 1, 1998 - Mayor and Council approve issuance of a Request for Qualifications for a Stadium marketing and/or facility operations manager . Recommended motion: 1. Direct staff to negotiate with Big Red Apple for management and marketing services for the San Bernardino Stadium. or 2. Direct staff to negotiate with Big Red Apple for management and marketing services for both the San Bernardino Stadium and the California Theater . or 3. Direct staff to pursue other options for Stadium management and marketing. Signature Fred Wilson X 5122 Contact person: Phone: Supporting data attached: yes Ward: FUNDING REQUIREMENTS: Amount: To be determined Source: (Acct. No.) (Acct. Description) Finance: Council Notes: l�lSI qg 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. It was recommended that a contract be considered with a management company to market the stadium and manage events. On June 1, 1998, the Mayor and Council approved the recommendation of the Ways and Means Committee to issue a Request for Qualifications for a stadium marketing and/or facility operations manager for the Stadium. The RFQ stated that the city was seeking to contract with an experienced facility manager to develop and implement a marketing plan. The plan would include marketing the stadium on a year-round basis to generate additional revenues, and maximize the use of the facility for the benefit of the community. On June 15, 1998, the RFQ was sent out to nine (9) individuals and firms, including respondents to the previous RFQ. The RFQ was also advertised in local papers. Four(4) responses were received by the due date. A committee was formed with representatives from the Mayor's Office, City Administrator's Office, Finance, and Parks, Recreation, and Community Services to review the proposals and rank them in order of their qualifications. The four respondents were ranked in the following order: 1. Big Red Apple (San Bernardino, CA) 2. Rainy Day Productions (Oakland, CA) 3. Recreational Management Services Corporation(Utica, NY) 4. Andrew Gray(San Bernardino, CA) The committee interviewed representatives from the top two firms. Initially, the proposal by Rainy Day Productions was recommended to the Ways and Means Committee for approval. Based on information provided by additional references, however, the proposal by Rainy Day Productions was rejected, and subsequent meetings were held with Mr. Bob Lewis of Big Red Apple. Proposal by Big Red ed Apple Big Red Apple was established in 1974. The company provided facilities management and marketing services for the Orange Show from 1986-1994. Mr. Lewis' resume (Attachment A) and Big Red Apple's most recent proposal are attached(Attachment B). The proposal is for a two year contract for$65,000 annually,plus 15% of gross rent and other income. Big Red Apple would assume responsibility for marketing the stadium and facilitating special events, while Parks, Recreation, and Community Services would continue to handle maintenance and grounds- keeping. An agreement with Big Red Apple would potentially increase the use of the stadium and its recognition as an excellent facility. In the future, the potential exists to also increase revenues and offset the Stadium Fund deficit. In the short term, there would be a larger deficit in the Stadium Fund until additional revenues are received. No funds have been budgeted for stadium management services. The proposal by Big Red Apple is not primarily performance-based, and no minimum level of revenue for the City is guaranteed. A more performance-based contract would provide an excellent performance incentive for the contractor to aggressively market the facility, and minimize the City's financial risk. Recommendations The Mayor and Council have a number of alternatives. First,based upon the presentation today by Mr. Lewis, the Council could direct staff to negotiate with Big Red Apple concerning stadium management and marketing. Secondly, the Council could also direct staff to consider a contract with Big Red Apple for both the Stadium and the California Theater. Mr. Lewis had also submitted an earlier proposal to manage both the Stadium and the California Theater for$72,000 annually,plus 10% of gross rent and 5% of other income (Attachment Q. Currently, other options for theater management are being considered by EDA. If the Council is interested in this approach, it would be further reviewed by the RDA Committee. As a third alternative, staff could pursue other options for providing services, such as a partnership with the Convention and Visitors Bureau(CVB). It is recommended that the Mayor and Council allow Mr. Lewis to make a presentation regarding his proposal, then adopt one of the following motions: 1. Direct staff to negotiate with Big Red Apple for management and marketing services for the San Bernardino Stadium; 2. Direct staff to negotiate with Big Red Apple for management and marketing services for both the San Bernardino Stadium and the California Theater; or 3. Direct staff to pursue other options for stadium management and marketing. Attachment A BOB LEWIS President BIG RED APPLE 650 South " E" Street San Bernardino, CA 92408 (909) 885-3112 BUSINESS EXPERIENCE: 1974 to Present • Created Big Red Apple as a local entertainment development firm specializing in wide ranging productions for the Inland Empire market.Company prepares and implements performance scheduling, cash flow projections, capital expenditures and operating budgets. Develops and implements corporate sponsorship programs. Designs public relations programs,lays out advertising campaigns and marketing strategies.Manages manpower requirements including theatrical technicians,stagehands,ushers, security and box office personnel. ACHIEVEMENTS: • Produced over 1,000 live, name-talent shows in the Inland Empire, including Elvis Presley,The Rolling Stones,Bill Cosby,David Copperfield,The Highwaymen,George Carlin and James Whitmore. (See attached list). • Supervised local production for the "White House Communications Agency" for President Ronald Reagan's 1988 visit to San Bernardino. • Aided in the establishment of the "Inland Empire Auto Show" now in its ninth year encompassing over 100,000 sq. ft. of exhibit space. • Consulted with the City of Moreno Valley Parks & Recreation Department Outdoor Concert Series since 1992. Currently produce "The 4th of July Family Fun Fest" and the Nike PGA Golf Tournament for the City of Moreno Valley. • Supervised local production for "Miss Teen USA" Pageant, a live CBS network, nationally televised event. • Served as Director of Facilities and Director of Marketing for the National Orange Show on a contract basis 1986-1994. Supervised the remodeling of all major facilities. Successfully prepared and negotiated long term contracts for the operation of the outdoor market place swap meet, restaurant, food and beverage concessions and the stadium. • Supervised the conversion of the Orange Pavilion at the National Orange Show Grounds, into a 5,000 seat multi-purpose public facility. Included consulting on stage construction,theatrical curtaining,lighting, sound,and design of new dressing rooms. BOB LEWIS / BIG RED APPLE Page 2 ACHIEVEMENTS (continued) • Managed the Swing Auditorium (7,2000 capacity) which in its last year staged forty- four (44) major touring shows. Total attendance exceeded 220,000 paid, with revenues in excess of $1,8000,000 (a 147% increase in seven years of management). • Developed long-term union contract with the International Alliance of Theatrical Stage Employees (IATSE) • Sponsorship and marketing management for the Orange Show Speedway since 1994. • Developed and implemented La Opinion Newspaper marketing plan for Orange Show Marketplace. • Produced PRCA and Mexican rodeos,_ and monster truck events in the Orange Show Stadium. • Attained corporate sponsorship goals of $775,500 in the past seven (7) years. COMMUNITY ACTIVITIES: • Production management for"Christmas Tree Lane",Santa Claus Inc.,in San Bernardino and Palm Springs. • Production work for: National Charity League, March of Dimes Birth Defects Foundation, Riverside Black History Month Committee,Inland Council of Children's Home Society of California, Panhellenic of San Bernardino, and Assistance League of San Bernardino. Cinco de Mayo Benefit Festival for Radio KCAL. Produced,marketed and advertised "The Highwaymen" benefit for Loma Linda Children's Hospital. The following is a partial list of entertainment events Big Red Apple has brought to the San Bernardino market. Eric Clapton Rainbow Saxon Rick Nelson Van Cliburn Bad Company ELP New Order Ukrainian Dance Company The Thompson Twins AC/DC Humble Pie Kenny Rogers Uriah Heep Molly Hatchett Ice-T Mahogany Rush Deep Purple Charlie Pride Rush Marshall Tucker ZZ Top Toto Red Skelton The Eurythmics Roy Clark Journey Dottie West Thin Lizzy Leon Russell Willie Nelson Ronnie Milsap Jethro Tull Judas Priest Lynyrd Skynyrd Run DMC The Pretenders Jimmy Buffett Alice Cooper Dokken Led Zepplin Blood,Sweat&Tears Rick James Stryper Statler Brothers Bill Cosby Prince Keel Black Oak Arkansas Kool&the Gang Motley Cru Iggy Pop Blue Oyster Cult Fleetwood Mac Ted Nugent The Modernaires James Brown Steely Dan Eddie Rabbitt L.L. Cool J Harlem Globetrotters Tina Turner Sammy Hagar War Kenny G Iron Maiden The Whispers Lakeside REO Speedwagon U.F.O. Cameo Yes Santana Triumph Cheap Trick Black&Blue Black Sabbath Barbara Mandrell Aerosmith John Anderson Peggy Fleming The Barkays Smokey Robinson Tina Marie Creedence Clearwater Wayne Newton Queensryche Dana Dane Revival Marvin Gaye Lizzie Borden Force MD Fat Boys Atlantic Starr Boz Skaggs Twisted Sister Devo The Isley Brothers Rare Earth .38 Special Waylon Jennings Psychedelic Furs Quiet Riot Maze Jimmy Hendrix Bon Jovi Johnny Winter Ricky Van Shelton Bob Hope Frank Zappa Conway Twitty Great White Joan Jett& the Blackhearts Climax Blues Band Dana Carvey Brenda Lee Alabama Janis Joplin Joe Walsh Woody Herman Eddie Money Ronnie James Dio New Edition Johnny Cash Hank Williams Jr. Yngwie Malmsteen W.A.S.R Tammy Wynette Shalamar George Jones Savoy Brown Boston The O jays David Copperfield Earth,Wind &Fire Charlie Daniels The Byrds Scorpions Pat Travers The Tubes Tai Mahal Ratt Kiss The Fixx Lacy J. Dalton Stevie Ray Vaughn Herbie Mann Cinderella Jefferson Starship Rough Cut Loretta Lynn David Lee Roth Zapp Orchestral Maneuvers Def Leppard Bellamy Brothers Ringling Bros. Circus in the Dark Oingo Boingo Tom T. Hall Crosby,Stills &Nash Elvis Presley Helen Reddy Paula Kelly Lisa Lisa &Cult Jam Jose Feliciano Y&T Krokus George Strait Ice Capades Lee Michaels Night Ranger The Gap Band Procul Harem Joe Stampley Klymaxx Bread Rod Stewart Robin Trower Foghat Ballet Folklorico de Mexico Rose Royce Ray Price Whodini The Rolling Stones Moody Blues UTFO Tiara John Denver Ozzie Osbourne Whitesnake Con Funk Shun Beach Boys ELO Missing Persons Outlaws Elton John Foreigner B.B. King Peter Frampton Oak Ridge Boys The Grateful Dead Poison 2. COMPARABLE FACILITIES AND EVENTS As is indicated in my Resume, over the past twenty-five years I have successfully marketed, developed and/or operated a number of successful events and venues which demonstrate my ability to maximize the potential use and good will of the Stadium as an asset to the community. I believe the following are representative of the relevance, diversity and depth of my experience: Location Venue and/or Event San Bernardino, CA 1962-71. National Orange Show. Developed and trained the San Bernardino Roller Derby team, the Bobcats (later to become the Hollywood Stars); promoted and marketed the Roller Derby games, for a total of over 500 near sell-out events. Negotiated the rental agreement for use of the Damus Building, including its renaming as "Roller Game Hall;" and marketed and reconfigured the facility for Roller Derby and other events, including concerts, professional boxing and wrestling. Owned and/or managed all food and beverage and merchandise concessions, negotiated all facility rental contracts, and booked all team and other events. Maintained positive relationship with the landlord, the Roller Derby teams, Roller Derby League, and events managers. Australia 1971-72. Produced and marketed over 200 nationally televised events (5 events per week over two 20-week seasons) for Roller Derby, Inc., throughout Australia. I also supervised the operations necessary for the events(construction of tracks, staging, set up and removal of tracks in indoor and outdoor facilities), negotiated union contracts and hired construction and stage crews. Tokyo, Japan 1973. Produced and marketed over 30 nationally televised events for Roller Derby, Inc., supervised operations, negotiated union contracts and hired construction and stage crews. San Bernardino, CA 1962-84. National Orange Show, Swing Auditorium. Promoted, negotiated contracts for and produced over 400 live name-talent shows and events (starting with 6 events a year, and ending with 44 events in the year the building was destroyed). Managed merchandise, stage crews and all staffing for events. San Bernardino, CA 1974-76. With home office in San Bernardino, was assistant to Col. Tom Parker, responsible for all concert revenue, merchandise and promotional materials for Elvis Presley national tours, consisting of 78 concerts. Conducted all final settlements with concert facilities. —1— San Bernardino, CA 1984-86. National Orange Show. Supervised the conversion of the Orange Pavilion into a 5,000 seat multi-purpose public facility which would accommodate a broad range of events (women's volleyball, wrestling, ice skating and ice shows, concerts, trade shows, etc.). San Bernardino, CA 1986-94. National Orange Show. Served as Director of Facilities and Director of Marketing for the National Orange Show, on a contract basis. Supervised remodeling of all major exhibit buildings and facilities; prepared and negotiated long-term contracts for operation of outdoor marketplace swap meet, restaurant, food and beverage concessions and the National Orange Show Stadium. Developed long-term union contract with the International Alliance of Theatrical Stage Employees ("IATSE," the stage hands). San Bernardino, CA 1989-present. Provided production management in a variety of local venues for local events such as Headdress Ball, Santa Claus, Christmas Tree Lane, National Charity League, March of Dimes Birth Defects Foundation, Inland Council of Children's Homes Society of California, Panhellenic of San Bernardino, and the Assistance League of San Bernardino. San Bernardino, CA 1994-96. Provided marketing and advertising for the Civic Light Opera. San Bernardino, CA 1994-present. National Orange Show Speedway. Contracted for sponsorship and marketing/advertising for the NASCAR stock car racing in the National Orange Show Stadium. Promoted, marketed and advertised PRCA and Mexican Rodeos, Monster Truck events and concerts in the Stadium. I also contracted for and supervised ground preparation, design, staging and construction of specialized facilities for these events in the stadium infield. San Bernardino, CA 1984-present. National Orange Show. Booked, produced, supervised and/or marketed a broad range of events, including recreational vehicle shows (Carmay and La Mesa RV), Circus Vargas, trade shows (Money Store, Home and Garden Show), festivals (Cinco de Mayo, Mexican Food for Less Festival), the nationally televised production of Miss Teen U.S.A. Pageant, President Ronald Reagan's 1988 visit to San Bernardino, and the Inland Empire Auto Show (1990-1998). Attendance at these events, and the National Orange Show Speedway events, ranged from 3,000 to 10,000 in one day, to over 100,000 for five-day shows. Moreno Valley, CA 1992-present. Assisted the City of Moreno Valley, and its Parks and Recreation Department on events, including the Summer Concerts in the Park series and the annual Fourth of July Family Fun Fest. Provided a full-scale marketing plan for sale of tickets, advance sale and on-site staffing for the events, and logistical support in planning parking areas. Contracted for and worked within the City's budget in booking all talent, providing logistical —2— support, staging, sound and lighting, power requirements, facilities and all required rental equipment. Attendance at the Fourth of July festival has grown from 10,000 in 1995 to over 20,000 in 1997, with anticipated attendance in 1998 of 30,000. Concert events for the last three years have featured Three Dog Night, the Turtles, and America. Moreno Valley, CA 1994-98. Worked with the City of Moreno Valley in producing the Inland Empire Nike PGA Golf Tournament and Exhibit Village. Provided total event management, including the development of full-scale marketing, sponsorship, advertising, negotiation and contracting with outside contractors and vendors for all production services and logistical support with various City and County agencies. Attendance at this event exceeded 10,000 in 1997. I believe the letters of reference submitted with this proposal provide appropriate information from those persons who have first-hand knowledge of my background and experience, commitment to the Inland Empire and San Bernardino in particular, my ability to perform and achieve the goals of this proposal, and my reputation in the community. —3— Attachment B September 28 , 1998 PRODUCTION AND ENTERTAINMENT BY HAND DELIVERY DEVELOPMENT Fred Wilson, City Administrator CITY OF SAN BERNARDINO 300 North "D" Street San Bernardino, CA 92418 Re : Summary of Proposal for Management and Marketing of the San Bernardino Stadium Dear Mr. Wilson: As requested, this letter will set forth a summary of my proposal for management and marketing of the San Bernardino Stadium, which supersedes our previous discussions and my previous proposals . Based in large part on performance, this proposal represents a substantial cost savings to the City, yet retains my ability to provide professional management, marketing and development of the Stadium as a major community cultural and entertainment venue . My long-term commitment to and experience in the community lend strong support to this joint effort to expand and enhance the potential of the Stadium in the years to come . This proposal is based on the following basic terms : 1 . Initial two (2) year contract, with two, one (1) year renewal options . Performance will be reviewed annually; the contract will be terminable by the City for cause, on thirty (30) days' notice . "Cause" for termination will be defined as abandonment, breach of contract, conviction of a criminal (non-traffic) offense, or failure to abide by City ordinances or regulations, after notice . 2 . $65, 000 annually, payable monthly, plus fifteen percent (150) of gross rental income and gross income from other sources generated through the efforts of Big Red Apple . "Gross rental income" and "other income" will be defined in the contract . 3 . The City shall provide appropriate office space in the Stadium, including telephones, basic computer equipment and access compatible with City systems . 909-853112 4 . The City will budget and commit a minimal amount for start- FAX RH6(r64 up marketing and advertising, in an amount not less than $15, 000 , based on the submission of appropriate requests and P.O.Box 5742 verification of expenditures by Big Red Apple . SAN BERNARDINO CA 92412-5742 F . Wilson: Proposal for Stadium/Theatre September 28 , 1998 Page Two I believe this proposal realizes a cost savings for the City of more than 50% of what is presently expended for management and marketing of other entertainment venues in the City, and represents a significant reduction from my previous proposal , in exchange for the performance-based revenue sharing standard set forth above . While I sincerely believe that joint management of the Stadium and the California Theatre would result in a strong enhancement of the City' s ability to bring new audiences to the downtown area for a diverse range of activities, greater ability to work with established performing arts groups, and the ability to offer and promote two venues more economically, I believe this proposal represents the most cost effective way to independently develop the potential of the Stadium. Another essential element of this proposal is my strong desire to assist the City in renegotiating key terms of the Stadium lease, and in obtaining financial commitments and community incentives for enhancing the potential use of the Stadium. For example, funding sources should be actively pursued for expanding the potential use of the Stadium parking lot, and for quality staging, lighting and sound for community-sponsored events . This funding and flexibility for Stadium use could be achieved in part through a renegotiated lease; and in part by seeking private commitments (or sponsorships) for upgrades to the Stadium. This proposal is based on my firm belief and commitment that the Stadium is an essential anchor in focusing attention on the downtown area, and that it can be professionally managed and marketed in a manner which promotes the goals of the City, providing a key venue for a broad range of community-sponsored events, and through which the present positive community momentum may be directed. I further believe that my twenty-five year track record in the community clearly demonstrates both my administrative, financial and marketing abilities, my professionalism and my commitment to the betterment and promotion of the City of San Bernardino as a positive focal point in the Inland Empire . Thank you for the opportunity to submit this proposal . I look forward to presenting my proposal in more detail in the near future . Yours sincerely, Obb L 1 President Attachment C pp? PRODUCTIONAND September 21 , 1998 ENTERTAINMENT DEVELOPMENT BY HAND DELIVERY Fred Wilson, City Administrator CITY OF SAN 13ERNARDINO 300 North "D" Street San Bernardino, CA 92418 Re : Summary of Proposal for Management of the California Theatre and the San Bernardino Stadium Dear Mr. Wilson: As was requested at the September 18 , 1998 , meeting with you and Mayor Valles, this letter will set forth a summary of my proposal for joint management of the California Theatre of Performing Arts and the San Bernardino Stadium. This proposal supersedes my previous proposals, and represents a substantial cost savings to the City through joint, professional , management, marketing and development of San Bernardino' s two major community cultural and , entertainment venues . This proposal is based on the following basic terms : 1 Three (3) year contract, with one three (3) year renewal option. 2 . $72 , 000 annually, payable monthly, plus ten percent (10%) of gross rental income and five percent (5%) of gross income from other sources generated through the efforts of Big Red Apple . "Gross rental income" and "other income" will be defined in the contract . 3 . The City shall provide appropriate office space in the Theatre and the Stadium, including telephones, basic computer equipment and access compatible with City systems . 4 . The City will budget and commit a minimal amount for start- up marketing and advertising, in an amount not less than 909-853112 $15 , 000, based on the submission of appropriate requests and FAX 88KH6 verification of expenditures by Big Red Apple . P.O.Box 5742 SAN BERWDINO CA 92412-5742 F. Wilson: Proposal for Stadium/Theatre September 21 , 1998 Page Two I believe this proposal realizes a cost savings for the City of more than 50% of what is presently expended for management and marketing of the California Theatre plus the average of the proposals presently being reviewed by the City for the Stadium. Joint management of both venues will also result in enhanced ability to bring new audiences to the downtown area for a diverse range of activities, greater ability to work with established performing arts groups, and the ability to offer and promote two venues more economically. I would also like to assist the City in renegotiating key terms of the Stadium lease, and in obtaining financial commitments and community incentives for enhancing the potential use of the Stadium. For example, funding sources are desirable for expanding the potential use of the Stadium parking lot, and for quality staging, lighting and sound for community-sponsored events . This proposal is based on my firm belief and commitment that the Stadium and the California Theatre are essential anchors in focusing attention on the downtown area, and that they can be professionally managed and marketed in a manner which promotes the goals of the City, providing two venues for a broad range of community-sponsored events, and through which the present positive community momentum in this direction may be directed. I further believe that my twenty-five year track record in the community clearly demonstrates both my administrative, financial and marketing abilities, and my commitment to the betterment and promotion of the City of San Bernardino as a positive focal point in the Inland Empire . Thank you for the opportunity to submit this proposal . I look forward to presenting my proposal in more detail in the near future . Yours sincerely, �iL&e s President