Item Coversheet

Resolutions - C7  E




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:July  31, 2019
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO  REQUEST FOR QUALIFICATIONS (RFQ) NO. 2019-122-WG, FOR SPONSORSHIP AND NAMING RIGHTS CONSULTING SERVICES.

RECOMMENDATION

Adopt the resolution accepting the recommendation of the City Manager, pursuant to  Request for Qualifications (RFQ) No. 2019-122-WG,  for sponsorship and naming rights consulting services.

ANALYSIS

The City is interested in seeking to increase revenue generation through the strategic identification, cultivation, and solicitation of additional sponsorship and naming rights opportunities. As a result, the City is interested in engaging a consultant(s) to explore and assist with the desired goals for sponsorship and naming rights opportunities.

 

Corporate sponsorship and naming rights are the process of linking complimentary corporate brands for mutual benefit with business partners whose corporate missions are consistent with those of the City of Miami Beach (the “City”).  For the business, benefit is typically some form of advertising, public relations or facility naming rights.  While the business gains financially by marketing advantage and/or customer loyalty enhancement, the advantage to the City is primarily financial.  Corporations will pay the City for the ability to use or link with our City image and identity.

 

These marketing programs rise from the natural partnerships between city governments and the local, regional and national businesses they host and interact with in the daily course of business.  Corporate sponsorship and naming rights programs have emerged as a financially viable, ethically appropriate and aesthetically acceptable municipal financing tool.  As a world-class resort city, the City of Miami Beach is especially well positioned to implement this now well-established model for generating additional revenue. 

 

RFQ PROCESS

On February 13, 2019 the Mayor and City Commission approved the issuance of RFQ 2019-122-WG for Sponsorship and Naming Rights Consulting Services.  On February 14, 2019, the RFQ was issued.  A voluntary pre-proposal conference to provide information to proposers submitting a response was held on March 12, 2019.  Two addenda were issued.   The Procurement Department issued bid notices to 1022 companies utilizing www.publicpurchase.com website. 66 prospective bidders accessed the advertised solicitation.  RFQ responses were due and received on April 12, 2019. 

 

The City received proposals in response to the RFQ from the following four (4) firms: Fig Solutions; Global Spectrum L.P. dba Spectra Partnerships; Siinc LLC dba Siinc Agency; and The Superlative Group.

 

On February 13, 2019, the City Commission approved the City Manager appointed Evaluation Committee. The Evaluation Committee convened on June 24, 2019, to consider proposals received.  The Committee was comprised of Tonya Daniels, Director, Office of Communications, City of Miami Beach Monica Beltran, Assistant Director, Parking Department, City of Miami Beach Matt Kenny, Director, Tourism & Culture Department, City of Miami Beach Tameka Otto-Stewart, Director, Budget and Performance Improvement, City of Miami Beach and Margarita Kruyff, Assistant Director, Environmental and Sustainability Department, City of Miami Beach.  The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance and the Government Sunshine Law.  The Committee was also provided with general information on the scope of services and a copy of each proposal.  The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFQ. 

 

The evaluation process resulted in the ranking of proposers indicated in Attachment A, in the following order:

 

Group I Corporate Sponsorship

First Ranked – Global Spectrum LP DBA Spectra Partnerships

Second Ranked – The Superlative Group

Third Ranked – Siinc LLC DBA Siinc Agency

Fourth Ranked – Fig Solutions

 

Group II Naming Rights

First Ranked – Global Spectrum LP DBA Spectra Partnerships

Second Ranked – The Superlative Group

Third Ranked – Siinc LLC DBA Siinc Agency

Fourth Ranked – Fig Solutions

 

The following are brief bios of the first and second ranked firms based on the information contained in each firm’s proposal.

 

Global Spectrum LP DBA Spectra Partnerships

Spectra Partnerships is a leader in sales representation, strategic consulting, and analytics for sports and entertainment properties across North America. Their experienced sales team drives revenue for their clients and their properties via the marketing and sale of naming rights, corporate partnerships, advertising, premium seating, and hospitality.

 

As an industry expert, their Partnership division provides marketing and sales services for municipalities, convention centers, stadiums, arenas and other entertainment venues.  They currently support 120 client properties while generating over $70M in sales.  They believe that they are uniquely qualified to provide the services requested by the City based on the competitive advantages of Spectra.

 

Spectra proudly manages the Miami Beach Convention Center, which equips them with both an emotional investment in the community and familiarity of the market and venue; and that as a result, this will expedite the sales cycle.  Throughout their management of the Miami Beach Convention Center, Spectra has been providing oversight during the venues’ recent $620 million renovation which is expected to not only improve sales and booking for the convention center, but also impact room nights and tourism in the Miami-Dade area.

 

The Superlative Group

The Superlative Group are extremely focused on selling naming rights and sponsorships. Their team of sales executives have more than $2 billion worth of experience closing sponsorships, large and small. Their Total Campaign Management includes planning, prospecting, negotiating, contracting and auditing.

 

Their firm has extensive experience selling Naming Rights, Pouring Rights, Sponsorships, Premium Seating and Licensing for similarly situated entities throughout the United States.  In particular, they have experience with southern Florida, which includes previous work with the City of Miami Beach.

CONCLUSION

I have reviewed the submittals and the results of the Evaluation Committee process. In doing so, I note Spectra Partnerships has received unanimous top-ranking for both Group I (Corporate Sponsorships) and Group II (Naming Rights). Spectra has an extensive client list for which it has provided both naming rights and sponsorships. In addition to managing naming rights for nearly 30 properties in the last ten (10) years, Spectra has impressive credentials for sponsorship and advertising sales, currently supporting 120 client properties generating over $70 million in sales.

 

Another important benefit to Spectra’s proposal is that it has offered to hire and dedicate a locally-based, full-time employee who will be committed to managing the City’s engagement. In doing so, Spectra would assume the responsibilities of securing both cash donations and in-kind sponsorships for City events (ex. Fire on the Fourth, Youth Music Festival, Veterans Day, etc.), City programs (ex. SoundScape Cinema Series, Parks and Rec programs, etc.), and City initiatives (ex. City of Kindness, Recycling, Anti-Litter, etc.).  It would also be my goal to have Spectra assist in securing additional revenue generated by selling advertising through City-owned platforms such as MB Magazine, MB Trolley, and parking meter receipts.  The scope of work contemplated would include identifying and researching potential partners, prospecting, negotiating & securing funds or in-kind donations, assisting with activation implementation when appropriate as well as managing the partner relationships. This arrangement would allow the Office of Marketing & Communications to eliminate a full-time development coordinator position that is vacant.

 

Therefore, I recommend that the Mayor and City Commission approve the Resolution authorizing the Administration to enter into negotiations with Global Spectrum LP, DBA Spectra Partnerships, as the unanimous top ranked proposer for Group I - Naming Rights and Group II - Corporate Sponsorships; and, if unsuccessful in negotiating an agreement with Global Spectrum LP, DBA Spectra Partnerships, authorizing the administration to enter into negotiations with The Superlative Group, as the second ranked proposer for Group I - Naming Rights and Group II - Corporate Sponsorships; and authorizing the Mayor and City Clerk to execute an agreement upon successful negotiations by the Administration.

KEY INTENDED OUTCOMES SUPPORTED
Ensure Expenditure Trends Are Sustainable Over The Long Term

Legislative Tracking
Marketing and Communications/Procurement

ATTACHMENTS:
Description
Attachment A
Resolution