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Home My WebLink About2011-11-14 12-010 ORDERCOUNCIL ACTION Item No. 1 2 Q 10 Date: November 14, 2011 Item/Subject: Order, Authorizing Execution of a Contract with Global Spectrum, L.P. for Pre - Opening Consulting Services for the New Arena/Meeting Complex — Bass Park Responsible Department: Finance Commentary: This Order will authorize execution of a contract with Global Spectrum, LP for Pre -Opening Consulting Services for the new arena/meeting complex. In June 2011, the Council authorized staff to begin negotiations with Global Spectrum, L.P. to operate the new arena and meeting complex. The parties have met and discussed contract options, and have finalized terms and conditions. At this time, the attached Contract for pre -opening consulting services is ready for Council consideration. The proposed scope of service includes operational design/construction consulting, identifying candidates for key staff positions, operational start-up, facility marketing, sponsorship sales, event booking and food and beverage services. The contract term is November 1, 2011 through June 30, 2012 at a cost of $3,000 per month, plus expenses (i.e. travel, advertising, promotions/brochures, etc.). The estimated total cost of the contract is $59,000. The parties will continue to meet to negotiate a proposed management services agreement. The scope of that agreement will encompass the pre -opening consulting services as well as the management of the current facility and grounds effective July 1, 2012. Department Head Manager's Comments: City Manager Associated Information: Order, Proposed Contract Budget Approval: Adequate funds are available within the Arena Fund for this initial contract. , ! ��Z Finance Director Legal Approval: Introduced for X Passage First Reading Referral 404� City Solicitor Page _of_ Assigned to Councilor - Durgin CITY OF BANGOR 121 010 November 14, 2011 (TITLE.) Order, Authorizing Execution of a Contract with Global Spectrum, L.P. for Pre -Opening Consulting Services for the New Arena/Meeting Complex - Bass Park By the City Council of the City of Bangor.• ORDERED, THAT, Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor, to execute a contract with Global Spectrum for pre -opening consulting services for the new arena/meeting complex at Bass Park. Said contract shall be substantially the same as attached hereto and in a final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL November 14, 2011 Motion Made and Seconded for_Passage Passed CITY CLERK X12-010 ORDER (TITLE,)Authorizing Execution of a Contract with Global Spectrum, L.P.. for Pre Opening Consulting Services for the New Arena/Meeting Complex Bass Park Assigned to Councilor 7hL� % ® T� 1�' 010 �od�N As of November 1, 2011 City of Bangor, Maine 73 Harlow Street Bangor, Maine 04401 Attn: Debbie Cyr, Finance Director Re: New Bangor Arena and Convention Center Dear Ms. Cyr: You have informed us that Global Spectrum, L.P. ("GS") has been selected by the City of Bangor (the "City") to consult on, operate and manage the to -be -constructed Bangor Arena and Convention Center, scheduled to open on September 2013 (collectively, the "New Facilities"), and the existing Bangor Fairgrounds ("Fairgrounds"). In connection therewith, the parties will be negotiating a long-term agreement pursuant to which GS will provide pre -opening operational services for the New Facilities, and, following their opening, provide management and operational services for the New Facilities and the Fairgrounds. In the meantime, the City desires to engage Global beginning as of November 1, 2011 to provide certain pre -opening consulting services with respect to the New Facilities. The purpose of this letter is to document our agreement regarding such pre -opening consulting services. Our agreement is as follows: Term; Termination. (a) The term of this agreement ("Term") shall begin as of November 1, 2011 and shall expire on June 30, 2012, (b) Either party hereto may terminate this agreement in the event of a material breach by the other party, which material breach is not cured within thirty (30) days of written notice to the breaching party describing such material breach in reasonable detail. 2. Services. (a) During the Term, GS shall provide the following consulting services with respect to the New Facilities for the benefit of the City (the "Services"): Operational Design and Construction Consulting • Review design drawings and make recommendations for operational improvements 12 010 • Review and comment on change order requests from an operational perspective • Identify show promoter requirements and relay to design team • Identify necessary patron services and amenities and relay to design team • Assist with food, beverage operational design issues • Identify Information technology requirements • Identify storage needs and potential issues • Identify additional revenue opportunities (signage, food and beverage, merchandising, parking) • Review designs for communications systems (including alarm systems) • Develop FF&E Budget • Work with City to determine purchasing procedures for FF&E • Attend regular progress meetings with design/construction and management team Staffin • Identify candidates for General Manager • Identify candidates for Sales Manager (Convention Sales) • Identify candidates for Director of Corporate Sales • Identify candidates for Director of Operations / Fair Manager Operational Start -Up • Develop booking and scheduling policy • Establish and get approval from City on rental rates and service fees • Create facility producer's guide • Develop User Rental Contract and submit to the City for its approval • Maintain booking calendar; schedule and contract events • Target first year events • Advise on ticketing solution • Determine office locations for staff Facility Marketing • Establish community relations and exposure to industry via media releases, speakers bureau, paid advertising and/or direct mail • Begin to develop Facility web -site Sponsorship Sales — Subiect to the paragraph at the end of this section, Global shall cause its affiliate, Front Row Marketing Services, L.P. ("FRMS"), to provide the following services (the "FRMS Services") • Begin a naming rights analysis to define approximate value of the proposed naming rights for the New Facility • Meet with the City to discuss some possible naming rights candidates and to discuss procurement / selection of partners in the New Facilities and how that process can possibly be leveraged • Begin work on naming rights proposal deck Page 2 2 010 • Begin putting together list of City -area advertisers and potential naming rights partners • Do evaluation to price out suite / premium seating value • Work with architect / City on what type of signage will be in the New Facilities (what will eventually be for sales) • When naming rights analysis is complete, present findings to the City • After City signs off on naming rights evaluation, parties to agree on a "go to market asking price • Complete naming rights presentation for City approval • City and FRMS to discuss a "Top 10 list" for potential naming rights partners • Develop proposed pricing for suites / premium seating for City approval • Complete marketing / sales deck for suites / premium seating for City approval • Begin presentations of naming rights to "Top 10 list". City will assist in the coordination of certain meetings • Schedule meetings for some key categories for the New Facilities, such as soda, beer, waste management, internet needs, etc. FRMS will compile a full list to present to the City • Commence sale of suites • Announce official on -sales date for suites • Develop invitations to target list to visit the Marketing Center • Develop suite license form and letter of intent • Develop RFP's for manufacturers of advertising inventory and premium seating FF&E • Develop sales reporting documents for the City • Meet with key personnel with regard to the Bangor Fair • Assist in driving revenue for the Bangor Fair Provision of the FRMS Services is subject to FRMS being engaged by December 31, 2011 to provide commercial rights marketing services (i.e., marketing and sale of sponsorship, advertising and premium seating rights) at the New Facilities on terms acceptable to FRMS. In the event FRMS is not engaged to provide such services with respect to the New Facilities by such date, the FRMS Services shall not be provided hereunder. The parties acknowledge that any engagement of FRMS to provide such services will be subject to the approval of the City. Event Booking • Develop Calendar of Events • Work with CVB to establish formal collaborative booking relationship • Target specific events for the convention center • Target specific events for the arena • Establish positive and cooperative relations with promoters • Review all potential event revenue streams and establish programs to maximize revenue Page 3 1.2 01.0 • Maintain /improve upon current relationships with established Bass Park Users • Review "Meeting Planner Guide" with the CVB Food & Beverage • Establish food and beverage service plans for concessions • Establish food and beverage service guidelines for catering • Review food and beverage FF&E needs (b) The City acknowledges that GS shall not engage any on-site staff under this agreement, and all Services shall be performed by GS off-site or otherwise through short-term trips to the City (the costs of which shall be reimbursed to GS as provided in Section 3 below). The City shall provide reasonable advance notice to GS (at least 2 weeks) prior to any travel as requested by the City, in order to allow GS employees to schedule their time appropriately and to enable GS to secure preferable airline rates. (c) The City acknowledges that neither GS nor its employees, agents, or affiliates are architects, general contractors or engineers, and that their services provided under this agreement are based on their operational knowledge of arenas and convention centers and should not be construed as a representation of architectural, construction or engineering practices. Neither the City nor any of its respective officials, agents, contractors, consultants or representatives will rely upon GS or its employees, agents or affiliates as having architectural, construction or engineering expertise. 3. Compensation to GS; Expense Reimbursement. (a) As consideration for GS's provision of the Services, the City shall pay GS Three Thousand Dollars ($3,000) per month during the Term ($24,000 total). Payment of such monthly fee shall be made to GS by the 15th day of each month during the Term. (b) Additionally, the City shall reimburse GS for all pre -approved, out-of-pocket expenses incurred by GS and its employees in connection with its duties hereunder, including without limitation expenses incurred by GS and its employees for travel (airfare, hotel, meals, and ground transportation) related to its activities hereunder, and expenses for promotional materials generated by GS for the New Facilities. GS shall invoice the City on a monthly basis for such expenses, and the City shall reimburse GS for such expenses within thirty (30) days of invoice. All invoices for expense reimbursement shall be accompanied with attached back-up documentation such as hotel invoices, airline ticket passenger receipts, food/beverage receipts, etc. 4. Contract Administrator. Each party shall appoint a contract administrator who shall monitor such party's compliance with the terms of this Agreement and serve as the point of contact for any questions or issues in connection with this Agreement. GS' contract administrator shall be Doug Higgons, or his designee. The City's contract administrator shall be Page 4 12 01.0 Catherine Conlow, or her designee. Either party may changes its contract administrator upon notice to the other party. 5. Miscellaneous. The parties agree that GS is being engaged by the City hereunder as an independent contractor, and nothing contained in this agreement shall be deemed to create, whether express or implied, a partnership, joint venture, or employment relationship between GS and the City. This agreement constitutes the entire agreement of the parties with respect to the subject matter hereof, and may be amended only by a written agreement executed by an authorized representative of each party. In no event shall either party be liable or responsible for any consequential, indirect, incidental, punitive, or special damages (including, without limitation, lost profits) whether based upon breach of contract or warranty, negligence, strict tort liability or otherwise, and each party's liability for damages or losses hereunder shall be strictly limited to direct damages that are actually incurred by the other party. The Agreement is entered into under and pursuant to, and is to be construed and enforceable in accordance with, the laws of the State of Maine, without regard to its conflict of laws principles. This Agreement may be executed in counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same document. This Agreement may be executed by the parties and transmitted by facsimile or electronic transmission, and if so executed and transmitted, shall be effective as if the parties had delivered an executed original of this Agreement. If you are in agreement with the foregoing, please sign below evidencing your intent to be legally bound hereby. Sincerely, GLOBAL SPECTRUM, L.P. By: Name: Title: AGREED AND ACKNOWLEDGED: CITY OF BANGOR, MAINE By: Name: Title: Page 5