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Recommendation to authorize City Manager to execute any and all documents necessary for a supplemental agreement to Management Agreement No. 21667 with SMG, formerly known as Spectacor Management Group, for the completion of certain capital improvement projects at the Long Beach Convention and Entertainment Center located at 300 East Ocean Boulevard. (District 2)
DISCUSSION
The City is the owner in trust of the Long Beach Convention & Entertainment Center (Center), which is comprised of the Arena, Terrace Theater, Center Theater, and Exhibition Halls.
The City contracts with SMG to operate the Center under Management Agreement No. 21667. Under its agreement with the City, SMG is required to manage, operate, and maintain the Center in good condition, as well as to repair and replace damaged or defective Center improvements. Annually, the City allocates Tidelands Operating Funds to SMG to make those repairs and improvements.
The Long Beach Area Convention and Visitors Bureau (Bureau) is responsible for attracting convention business to the Center. It has negotiated a contract with The Sapling Foundation, a non-profit foundation, to host the Technology Entertainment Design (TED) Conference at the Center in February 2009. "The goal of the foundation is to foster the spread of great ideas; it aims to provide a platform for the world's smartest thinkers, greatest visionaries and most inspiring teachers, so that millions of people can gain a better understanding of the biggest issues faced by the world and a desire to help create a better future." This first-time event in Long Beach will provide an excellent opportunity to showcase the Center, as well as the City.
Minimal funds have been invested into the Center for maintenance and refurbishment and as a result, key features are in disrepair or out of date. As a result of oil revenues in the Tidelands fund, the opportunity now exists to invest in the Center.
The City and SMG have a five-year Capital Improvement Project List for the Center. In preparation for the TED event, SMG and the Bureau and City staff toured the Center to evaluate the condition of the facilities. Based on the tour, a listing of the capital improvement items requiring immediate repair or replacement has been developed. The list includes the following items:
1. Upgrade interior elevators for Terrace Theater (4)
2. Upgrade and refurbish Terrace Theater restrooms
3. Upgrade exterior elevators for Terrace and Center Theaters (2)
4. Remodel Arena restrooms
5. Design consultation fees
6. Replace Terrace Theater draperies
7. Upgrade elevators for Terrace Theater garage (2)
8. Replace Terrace and Center Theater furniture
9. Upgrade Terrace Theater amps and speakers
10. Upgrade freight elevator for Terrace Theater
11. Upgrade and refurbish Center Theater restrooms
12. Upgrade Center Theater lighting (Phase I)
13. Purchase 4,000 meeting room chairs
14. Repair Exhibition Hall roof
15. Paint interior and lobby ceilings of Arena
16. Upgrade lighting in Arena lobby
17. Recover Arena columns
18. Retrofit facility lighting
19. Purchase parking equipment
20. Replace carpeting in Grand Ballroom
21. Replace carpeting in Promenade
22. Upgrade Center Theater lighting (Phase II)
The above-mentioned items are listed in order of priority and are estimated to cost approximately $6,000,000, and will be funded by the Tidelands Operating Fund.
In an effort to finish the above-listed projects prior to next year's scheduled events, a Supplemental Agreement to Management Agreement No. 21667 must be entered into to authorize the additional improvements be managed by SMG. SMG shall oversee the capital improvement projects to ensure the bidding process complies with all City regulations and the resulting contracts comply with the State Labor Code, as well as with the City's insurance, bond and other performance requirements. Also, SMG shall confirm with the City that each project has been completed according to the terms of the given contract.
This letter was reviewed by Principal Deputy City Attorney J. Charles Parkin on August 12, 2008 and Budget Management Officer Victoria Bell on August 12, 2008.
SUSTAINABILITY
With respect to the proposed lighting retrofit projects, new ballast and bulbs can reduce energy consumption by up to 50 percent while providing the same or better quality of lighting. Retrofitting lights is among the easiest energy saving options to implement.
TIMING CONSIDERATIONS
City Council action is requested on September 2, 2008, in order to allow SMG to complete the capital improvement projects immediately.
FISCAL IMPACT
The Tidelands Operating Fund (TF 401) is restricted for use only within the tidelands area and cannot be used for other City infrastructure improvements. Funding for these projects will be appropriated in FY 08 through the Fourth Quarter Budget Adjustment and in the FY 09 budget. Funds are available to cover the projected need.
There is no impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
DENNIS J. THYS, DIRECTOR
DEPARTMENT OF COMMUNITY DEVELOPMENT
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PATRICK H. WEST |
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CITY MANAGER |