formal invitation for bids

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CITY OF LAREDO ________________________________________________________________________ City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 1 of 9 REQUEST FOR PROPOSAL RELATED TO MANAGEMENT OF THE LAREDO ENTERTAINMENT CENTER ISSUED BY CITY OF LAREDO,TEXAS JULY 2, 2008

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Page 1: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 1 of 9

REQUEST FOR PROPOSAL

RELATED TO

MANAGEMENT OF THE LAREDO ENTERTAINMENT CENTER

ISSUED BY

CITY OF LAREDO,TEXAS

JULY 2, 2008

Page 2: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 2 of 9

FORMAL REQUEST FOR PROPOSALS MANAGEMENT OF THE LAREDO ENTERTAINMENT CENTER

Notice is hereby given that the City of Laredo is now accepting sealed proposals, subject to the terms and conditions and other contract provisions, from qualified firms experienced in managing sports and entertainment facilities and that are interested in providing management services for the Laredo Entertainment Center (LEC) as specified herein. Copies of the proposal specifications may be obtained from the Finance Department – Purchasing Division, 5512 Thomas Ave., Laredo, Texas 78041 or by downloading from our website: www.ci.laredo.tx.us. Proposals will be received at the Office of the City Secretary, P.O. Box 579, 1110 Houston Street, Laredo, Texas 78042 until 5:00 P.M. on August 5, 2008 and all proposals submitted will be publicly acknowledged at 3:00 P.M. on August 6, 2008. RFP: Management Services for the Laredo Entertainment Center FY08-106 Proposals if mailed: City of Laredo – City Secretary C/O Gustavo Guevara Jr. City Hall – Third Floor PO Box 579 Laredo, Texas 78042-0579

Hand Delivered: City of Laredo – City Secretary C/O Gustavo Guevara Jr. City Hall – Third Floor 1110 Houston Laredo, Texas 78040

The City of Laredo reserves the right to reject any and all proposals, and to waive any minor irregularities. “The undersigned affirms that they are duly authorized to submit a proposal to the City of Laredo, that this company, corporation, firm, partnership or individual has not prepared this bid in collusion with any other vendor, and that the contents of this RFP as to prices, terms or conditions of said proposal have not been communicated by the undersigned nor by any employee or agent to any other person engaged in this type of business prior to the official opening of this proposal. By submitting this proposal the vendor agrees to the City of Laredo proposal specifications and all terms and conditions stipulated in the proposal document” Firm Name:______________________________________ Signer’s Name ____________________________________

(Please Print or Type) Address: ________________________________________

Signature ________________________________________ of person authorized to sign bid

City, State, Zip Code: ______________________________

Date: ___________________________________________

Telephone Number: _______________________________ Fax: ____________________________________________

Prompt Payment Discount: ________ % ________ days If no discount is offered, Net 30 days will apply.

Indicate Status: _______ Corporation _______ Partnership ______ Sole Proprietorship

_______ Other (specify) ______________ State how long under its present name _________________ Tax Identification Number: _________________________

Email address: ____________________________________

Please submit one original signature document and six copies.

Page 3: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 3 of 9

FORMAL REQUEST FOR PROPOSALS MANAGEMENT OF THE LAREDO ENTERTAINMENT CENTER

1.0 INDRODUCTION The City of Laredo, Texas is accepting responses to this Request for Proposals (RFP) from firms experienced in managing sports and entertainment facilities and that are interested in providing management services for the Laredo Entertainment Center (LEC) located in Northeast Laredo. The management firm shall oversee all aspects of the arena including operations, concessions, scheduling, ticketing, and marketing. Firms responding to this RFP must be prepared to undertake, in the most efficient manner, all aspects of facility management, marketing, and operations of the Laredo Entertainment Center. Respondents to this RFP shall be expected to meet or exceed the minimum qualifications set forth in this RFP document. The intent of this RFP is to select a facility management entity that is qualified and capable of operating and managing the Laredo Entertainment Center on behalf of the City of Laredo. 1.1 Laredo is located in southwest Texas, approximately 150 miles southwest of San Antonio, Texas. It is a home-rule

city with a population of approximately 225,000 and covers about 32 square miles 1.2 The Laredo Entertainment Center is a state-of-the-art multipurpose facility. The 178,000 square foot facility boasts a seating capacity of 10,000 with 14 luxury suites, six meeting rooms and a private club. It has 32,000 square feet of continuous open floor space. 1.3 Facility Information: Concert End Stage -- 9622 capacity Concert 3/4 House -- 6780 capacity Concert 1/2 House -- 4144 capacity Ice Hockey -- 8065 capacity Arena Football -- 8067 capacity Basketball -- 8665 capacity Over 2,000 well-lit parking spaces Two food courts TV monitors in concession areas Team store Six box office windows Six spacious meeting rooms Custom made, adjustable scoreboard weighing 10,500 lbs. Ice Rink -- 200 ft. x 85 ft. 1.4 Anchor Tenant The Central Hockey League, Laredo Bucks Hockey team serves as the anchor tenant at the LEC. The team has captured two President’s Cups and has a combined 146-32-12 record through six seasons at the LEC. 1.5 Pre-Proposal Conference A pre-proposal conference has been scheduled for Thursday, July 17, 2008 at 1:30 PM at the Laredo Entertainment Center, located at 6700 Arena Boulevard, Laredo, Texas 78041. This will be the only opportunity for interested firms/individuals to tour the facility.

Page 4: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 4 of 9

2.0 COST OF PROPOSAL This RFP does not commit the City of Laredo to pay any costs incurred by any vendor in preparation and/or

submission of a proposal, or for procuring or contracting for the services and items to be furnished under this RFP. All costs directly or indirectly related to responding to this RFP (including all costs incurred in providing supplementary documentation) will be borne by the vendor.

3.0 EQUAL OPPORTUNITY EMPLOYER

The successful vendor will be required to comply with all applicable Equal Opportunity laws and regulations.

4.0 OWNERSHIP OF PROPOSALS All documents submitted in response to this request for proposal (RFP) will become the property of the City of Laredo.

5.0 REJECTION OF PROPOSALS Proposals may be rejected if they show any alteration of words or figures; additions not called for, conditional or

uncalled-for alternate proposals, incomplete proposals, erasures, or irregularities of any kind, or contain any unbalanced values. Proposals tendered or delivered after the official time designated for receipt of proposal shall not be considered

6.0 RIGHT TO WAIVE IRREGULARITIES Proposals will be considered as being “irregular” if they show any omission, alterations of form, additions, or

conditions not called for, unauthorized alternate proposals, or irregularities of any kind. The City reserves the right to waive minor irregularities in the proposals. This right is the sole discretion of the

City of Laredo.

7.0 WITHDRAWAL OF PROPOSALS Proposals may be withdrawn by written notice received by the City of Laredo’s Purchasing Agent and City Secretary prior to the exact hours and date specified for receipt of proposals. A proposal may also be withdrawn in person by a vendor or his authorized representative, provided his identity is made known and he signs a receipt for the proposal, but only if the withdrawal is made prior to the exact hour and date specified for receipt of proposals.

8.0 AMENDING OF PROPOSALS

A vendor may submit an amended proposal before the deadline for receipt of proposals. Such amended proposals must be complete replacements of a previously submitted proposal and must be clearly identified as such in the transmittal letter. The City of Laredo will not merge, collate or assemble proposal materials.

9.0 PROPOSAL OFFER FIRM

Responses to this RFP, including cost, will be considered firm for one hundred and twenty (120) days after the latter of: 1.) the due date for receipt of proposals; or 2.) the date of receipt of a vendor’s last, best and final offer (if requested) submitted.

10.0 RFP TERMINATION The City of Laredo reserves the right, at his sole and unqualified discretion, to cancel this RFP at any time. The City of Laredo reserves the right to reject any or all proposals submitted in response to this RFP.

11.0 CONSIDERATION OF PROPOSALS Discussions may be conducted with responsible vendors capable of being selected for the award for the purpose of clarification. Until award of the contract is made by the City of Laredo, the right will be reserved to reject any or all proposals, to re-advertise for new proposals, or to proceed with the work in any manner as may be considered in the best interest of the City of Laredo

Page 5: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 5 of 9

12.0 TERM The City of Laredo desires to enter into an initial contract term of three years with one, three-year renewal option. Additional renewal is contingent upon mutual agreement by both parties and successful performance reviews.

13.0 APPLICABLE SPECIFICATIONS

The contractor shall at all times observe and comply with all Federal and State laws which, in any manner, affect the operation and provision of this service and attest to such in its proposal.

14.0 SUBMISSION OF RESPONSE TO THE RFP AND REQUIRED SUBMITTALS Respondents are asked to submit a detailed response to the Request for Proposal (RFP). Respondents are asked to submit one original signature document and six copies. Respondents are asked to submit their response to the RFP questions and include sufficient information regarding its qualification’s and support material that will allow the City of Laredo staff to evaluate your proposals. 15.0 AWARD OF CONTRACT:

This contract will be awarded the responsible offeror whose proposal is determined to be the most advantageous to the City of Laredo taking into account the evaluation factors include in this request for proposal. The selection of firm to perform these services will be subject to review and approval by the City Council.

Selection of a firm for possible oral presentations and for final consideration by the City will be based on the following criteria. 16.0 The City will review and evaluate the qualifications of facility management entities who respond to this RFP. Respondents must meet or exceed the following criteria:

• The entity must be legally capable of operating within the State of Texas; • The entity, or the individual firms that comprise a joint venture, must have at least five consecutive years

of current experience managing and operating public assembly facilities; • The entity, or the individual firms that comprise a joint venture, must currently operate at least one public

assembly facility that is currently home to a sports franchise; • The entity, or the individual firms that comprise a joint venture must have current experience operating

such a facility on behalf of a public entity, such as the City of Laredo.

Evaluation Criteria

Experience in the Industry Network of Promoters Ticket Master Sales

20%

Experience in the Region

20%

Compensation Management fee 20% Food and Beverage Fee 10% Other fees 5%

35%

Quality of Management Team 10% Marketing Plan 5% Financial Soundness 10%

Total 100%

Page 6: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 6 of 9

17.0 REQUIREMENTS OF THE RESPONSE Responses should be prepared simply and economically, providing a straightforward and concise description of the responder's experience and qualifications related to the operation and management of the Arena. At a minimum, the following information should be included in the response to this RFQ. This outline is not all-inclusive and respondents can provide additional information as deemed appropriate. In order to ensure a uniform review process and to obtain the maximum degree of comparability, the submissions in response to this RFQ must be organized in the following manner: 17.1 General Information Provide a transmittal letter that specifically states the responder's understanding of the work to be accomplished and briefly outlines the responder's strengths in providing the required services. The letter should also state that responder meets or exceeds the minimum qualification criteria outlined previously. This letter should be signed by an authorized corporate officer for each entity included as a team proposal. Include the name of responder's firm/entity, address, telephone number, name of contact person, and the title of the RFP. Provide a description of the proposing entity's current legal status (i.e. Corporation, Partnership, Sole Proprietor, Joint Venture, etc.) Provide the proposing entity's current Federal and State Identification Numbers. 17.2 Firm Background and Qualifications Provide a profile of your organization and describe its legal structure, principal officers and organizational structure. The responder must identify and distinguish between its own experience and qualifications and that of any parent entity, predecessor and/or wholly-owned or partially-owned subsidiary of the responder. Provide a copy of any organization profile, sales brochure or other documentary information pertaining to your organization. Provide resumes of key personnel and principals of the organization. Identify the extent to which each principal executive or staff member will be involved in the management of the LEC and whether such involvement will be on a fully informed daily basis or in an advisory capacity. Provide audited and certified financial statements for your organization's last three years of operation. If the responder is a Joint Venture, a copy of the Joint Venture agreement must be submitted for each party. Provide a complete and detailed history of your organization's facility management experience for the last five years. Information provided should include a description of services provided, examples of successful operational strategies and the term of the management contract. Provide a list of all facilities managed by your organization on behalf of a public entity that host major league professional sports franchises. Provide an explanation of your entity's experience in working with public entities and other entities that market facilities for a public entity, including cooperative efforts. Provide examples of the non-sporting events your organization has booked at arenas similar to the LEC, indicating the name of the event(s), where and when the event(s) occurred, and the event(s) attendance. Using specific examples, explain how your organization has effectively booked top-rated concert and family shows.

Page 7: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 7 of 9

17.3 Management Plan - Provide an explanation of the overall philosophy on how you would manage and operate the LEC. This may include: An overview of the plan for transitioning from the existing management entity to your organization, including key steps, a timeline of critical milestones and a description of roles and responsibilities; A suggested management organizational chart for key management of the LEC, including positions at the corporate and local levels; Description of the reporting structure between facility management and your corporate offices and to the City; Description of the resident management personnel that could be assigned to the LEC; Actual examples of management/financial reports used by your organization to advise governmental entities of performance. 17.4 Marketing Plan — Provide an explanation of the overall philosophy you would use to market the Laredo Entertainment Center, including: Provide an overview of marketing and promotional concepts that will further the goals of the LEC as a premier venue and maximize the benefits of the LEC to South Texas / Northern Mexico area. Describe your approach to booking/scheduling, promoting, advertising and marketing events at the LEC. Describe past experience working with entities such as the Laredo Bucks Hockey team or other entities in marketing and booking events. Describe how event scheduling and promoting will be coordinated with the Laredo Hockey team or other entities. Identify any competing facilities managed by your organization, including any facilities in the State of Texas regardless of size, and any facilities anywhere in the United States that are of such a size or in such a market as to compete with the LEC for booking events. Present a plan for preventing any conflict of interest in managing competing facilities. 17.5 Financial Plan — provide an explanation of the overall financial plan for the LEC, including: Summarize your proposed strategy for minimizing the annual operating expenses and maximizing the annual operating revenues of the LEC. Your strategy should be based on your existing understanding of the LEC operations and/or your overall approach for maximizing revenues and minimizing expenses. Understanding that the City will be financially responsible for and will have final approval of capital improvements, please provide a description of your entity's role with respect to identifying and prioritizing capital improvements, including approval, billing, purchasing and letting of contracts.

Page 8: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 8 of 9

17.6 Compensation Proposal Please provide an outline of a potential compensation proposal that you may be willing to enter into if selected as the Laredo Entertainment Center facility manager. The City is seeking creative compensation proposals, which may include, but should not be limited to, the following basic structures: At Risk Operator Structure — in such a scenario, the selected entity would be solely responsible for the operations of the LEC, retaining all operating revenues and accepting responsibility for all operating expenses, including any potential operating losses. Base and Incentive Fee Structure — under this plan, the selected entity would receive a base fee and potential incentive fee in exchange for operating the facility, while all operating revenues and expenses would be allocated to the City. Other Compensation Plan — please identify any alternative compensation plans related to the operation of the LEC that the City should consider as a part of your submission. This could include options for risk sharing, marketing participation or such options which could further promote the success of the LEC and limit the City's operating exposure. The intent of this request is to obtain a preliminary understanding of the potential compensation structures that may be required in a new management agreement for the LEC.

Page 9: FORMAL INVITATION FOR BIDS

CITY OF LAREDO

________________________________________________________________________

City of Laredo-Purchasing Division, 5512 Thomas Ave. Laredo, Texas 78041 Phone 956.790.1800 Fax 956.790.1805 Page 9 of 9

RESPONDANT INSTRUCTIONS: Proposals are to be submitted in a sealed envelope clearly marked: Proposal: Management Services for the Laredo Entertainment Center Proposal Deadline: 5:00 PM on August 5, 2008 Public Acknowledgement Of proposals received: 3:00 PM on August 6, 2008 If mailed: City of Laredo – City Secretary C/O Gustavo Guevara, Jr. PO Box 579 Laredo, Texas 78042-0579 If hand delivered: City of Laredo – City Secretary C/O Gustavo Guevara, Jr. City Hall – Third Floor 1110 Houston Street Laredo, Texas 78040 Required submittals: Attestations and disclosures

Communication with City: All questions must be directed in writing to:

City of Laredo Francisco Meza, Purchasing Agent 5512 Thomas Ave. Laredo, Texas 78041 Phone: 956.790.1800 Fax: 956.790.1805 Email address: [email protected]

Respondents are requested to direct all questions regarding the request for proposal to the City of Laredo - Purchasing Agent, who will serve as contact person on behalf of the City. Disregarding this requirement will be considered grounds for disqualification of the proposing firm and rejection of the proposal.

Notification to Finalists. The Purchasing Agent will notify appropriate firm(s) that the City wishes to interview them and will establish the time for those interviews. Notification to Non-finalists. The Purchasing Agent will notify those firms, which will not be interviewed. The City reserves the right to invite additional firms to be interviewed should a selection not be made from those chosen as finalists.

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