sr-032211-3jCity Council Meeting: March 22, 2011
Agenda Item: ~'"cS
To: Mayor and City Council
From: Barbara Stinchfield, Director, Community & Cultural Services
Subject: Modification of Contract with Strategic Advisory Group for Consulting
Services Related to the Civic Auditorium
Recommended Action
Staff recammends that the City Council authorize the City Manager to negotiate and
execute a modification to a Professional Services Agreement with Strategic Advisory Group
in the amount of $65,000 to provide financial and industry analysis in conjunction with the
development of a final agreement with the Nederlander Organization. The new two year
total agreement with Strategic Advisory Group will be $135,000.
Executive Summary
In April 2010, the City retained the services of the Strategic Advisory Group {SAG), a
national consulting firm with extensive expertise in convention and performing arts
centers, to assist in the analysis of the potential agreement with the Nederlander
Organization {Nederlander} for the Civic Auditorium. Staff recommends modifying the
agreement in the amount of $65;000 to retain the firm's consulting services to conduct
additional analysis on financing the needed capital improvements and professional
assistance in negotiating the final presenting agreement with Nederlander. The two year
agreement will not exceed $135,000.
Background
SAG was retained in April 2010. City Council authorization was not required for the
original contract since the total of $70,000 was below the threshold for Council approval.
On ~rlarch 8, 2011 the City Council approved the negotiated business terms with
Nederlander for apublic/private partnership to program the Civic Auditorium and
authorized the City Manager to negotiate a presenting agreement with Nederlander.
City Council also directed staff to explore alternate methods of financing the renovation
of the Civic Auditorium.
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Discussion
SAG, a national consulting firm with extensive expertise in convention and performing
arts centers, was selected in 2010 through a Request for Proposals process to assist in
the analysis of Nederlander's proposal, in particular in benchmarking it in relation to
agreements in place at facilities around the country. Staff recommends modifying the
agreement with SAG to two years and expanding the scope of work to include both the
development of an analysis of possible methods of funding the renovation of the Civic
.Auditorium, as well as an hourly rate to assist, as needed, in the development of the
final agreement with Nederlander. The total amount of the additional services will not
exceed $65,000.
ContractorlConsultant Selection
The City issued a Request for Proposals in March 2010. An interdepartmental group
reviewed the proposals and conducted interviews with finalists. SAG was selected
based on their experience and expertise with similar facilities around the country.
Financial impacts & Budget Actions
The contract modification to be awarded to SAG is $65,000. Funds are included in the
Civic Center Planning and Design project account at Account #0170772.589000.
Prepared by: Jessica Cusick, Cultural Affairs Manager
Approved:
Forwarded to Council:
~.,
Barbara Stinchfield Rod Gould
Director; Community & Cultural Services City Manager
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Reference Contract No.
9348 (CCS).