Management of Jobing.com Arena

Request for Proposal Related to: Management of Jobing.com Arena Issued by: (Date)

Introduction The (City), through its Materials Management Department, is accepting responses to this Request for Proposal (RFP) from firms experienced in managing sports and entertainment facilities and that are interested in providing management services for the Jobing.com Arena located at 9400 West Maryland Avenue, Glendale, Arizona 85305. Firms responding to this RFP must be prepared to undertake, in the most efficient manner, all aspects of Arena management, marketing and operations of Jobing.com Arena. Respondents to this RFP are expected to meet or exceed the minimum qualifications set forth in this RFP. The intent of this RFP is to identify those facility management entities that are qualified and capable of operating and managing Jobing.com Arena and that are interested in providing management services for the Jobing.com Arena on behalf of the City. Timing The timeline for RFP submittal is as follows: Request for Proposal Issue Date (Date) Responses due to City by X p.m. local time (Date) After responses have been received by the date noted above, the Selection Committee will identify those respondents considered to be qualified to proceed with the selection process, based on the minimum requirements set forth in this RFP. The minimum criteria to be met by potential respondents are provided later in this document under the section entitled Qualification Process. After respondents are identified as meeting the qualifications set forth in this RFP, the City will begin negotiations directly with one or more of the qualified entities. The Selection Committee also may choose to interview respondents. If the Selection Committee elects to conduct interviews, the interviews would be held at Glendale City Hall on (date). Response Submission Responses to this RFP are due by X:00 p.m. on (date). Six (6) entire sets of the proposal response shall be submitted, with one (1) hard copy marked as original and one (1) CD-ROM containing all original documents. The response shall complete all sections of the solicitation in the format given in the space provided. If additional space is needed than what is given, enter See attachment for detail. Submittal of the proposal material (including CD-ROM) by the Respondent in response to this 2

RFP shall be construed as the Respondent s intent to be bound by any resultant contract. The Respondent shall bear all costs associated with submitting the proposal, including proposal preparation, site visitation or any travel connected with submission of the proposal. The City shall have no liability whatsoever for such costs. All responses shall incorporate by reference the Scope/Specifications, Standard Terms and Conditions, Special Terms and Conditions and any attachments. The "Standard Terms and Conditions" applicable to this solicitation are posted on the Internet. They are available for review and download at the City of Glendale Materials Management Internet home page, www.glendaleaz.com/purchasing. Respondents are advised to review all provisions of the Standard Terms and Conditions for this solicitation. The City reserves the right to accept, reject, and to waive any minor informalities in any offer not deemed to be in the best interest of the City or negotiate modifications to any proposal as it shall determine in its sole discretion to be in the best interest of the City. However, each respondent must provide all information as requested in order for the proposal to be considered and may be disqualified for failure to submit any required attachment/exhibit/schedule, or for submitting incomplete or nonresponsive information, exhibits, attachments or schedules. Failure to include all the items may result in a proposal being rejected. Responses shall be delivered to the City on or before: Date: Time: To: City of Glendale Attn: Materials Management 5850 West Glendale Avenue, Suite 330 Glendale, Arizona 85301-2599 Responses received after the deadline will not be accepted. It is neither Materials Management s responsibility nor practice to acknowledge receipt of any response as a result of the Request for Proposal process. It is the Responder s responsibility to assure that a response is received in a timely manner. RFP Inquiries Prospective responders may only direct questions in writing to the designated contact person specific to this RFP: Name Title Dept City of Glendale 5850 West Glendale Avenue Glendale, Arizona 85301 Email: Fax: 3

All questions are due no later than X:00 p.m., (Date). Questions will be answered in writing by (Date). The department contact person is the only individual who can be contacted about the project by Respondents before the proposal deadline. The department contact cannot vary the terms of the RFP. Evaluation Criteria The criteria is listed in order of relative importance. Business Plan 30% Operational Plan 30% Organizational Background & Experience 10% Compensation Proposal 15% Facility Improvements 10% References 5% Evaluation Panel Submittals will be evaluated by an evaluation panel. Award shall be made to the responsive, responsible Respondent whose proposal is determined to be the most advantageous to the City. Jobing.com Arena Background In November of 2001, the City of Glendale entered into development agreements with The Ellman Companies for the development and operation of Westgate City Center, a 228-acre mixed use project anchored by a multi-purpose facility, known then as Glendale Arena, which was designed as the home of the NHL Coyotes. The development agreements provided for the City to fund up to $180,000,000 for the construction of the Arena facility. Construction commenced in early 2002. On December 26, 2003, Glendale Arena opened its doors to the public. The approximately 604,000 square foot Arena, owned by the City of Glendale was built as a state-of-the-art, multi-purpose facility on 13.5 acres. The Arena can seat nearly 19,000 with 5,500 parking spaces accommodated through a joint use agreement with Westgate City Center. On October 25, 2006, Jobing.com purchased the naming rights to the facility for $30 million over 10 years. Located in the heart of the Sports and Entertainment District, Jobing.com Arena attracts over one (1) million visitors to more than 100 sports and entertainment events annually. Qualification Process The City will review and evaluate the qualifications of facility management entities who respond to this RFP. Those Respondents deemed to have met or exceeded the minimum selection criteria below will then be provided with access to specific Arena operational information. The evaluation of qualified firms will be made by a group of individuals selected by the City. This 4

Selection Committee will review all responses to this RFP and will identify qualified entities according to the evaluation criteria. Respondents must meet or exceed the following criteria: The firm must be legally capable of operating within the State of Arizona; The firm, 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 firm, or the individual firms that comprise a joint venture, must be currently operating or must have operated an arena of comparable size to Jobing.com Arena within the last five (5) years; and The firm, or the individual firms that comprise a joint venture, must have current experience in operating such a facility on behalf of a public entity, such as the City of Glendale. The City reserves the right to reject any or all responses or parts of responses, to negotiate modifications of responses submitted, and to negotiate specific elements within a response. The City has a variety of ordinances and policies which may or may not apply to a subsequent agreement including, but not limited to, living wage, affirmative action, and the Small and Underutilized Business Program. Application of these requirements will be determined based on the structure of any subsequent agreement. Requirements of the Response Responses should provide 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 RFP. 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 RFP must be organized in the following manner: A. General Information a. Provide a transmittal letter that specifically states the Respondent s understanding of the work to be accomplished and briefly outlines the Responder s strengths in providing the required services. This 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 firm included as a team proposal. b. Include the name of Responder s firm/entity, address, telephone number, name of contact person, and the title of the RFP. c. Provide a table of contents that provides clear identification of the written material by section and by page number. d. Provide a description and supporting proof of the proposing firm s current legal status 5

e. Provide the proposing firm s current Federal and State Identification Numbers B. Firm Background and Qualifications a. Provide a profile of the responding firm 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. b. Provide a copy of any organization profile, sales brochure or other documentary information pertaining to responding organization. c. 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 Jobing.com Arena and whether such involvement will be on a fully informed daily basis or in an advisory capacity. d. Provide audited and certified financial statements for the responding firm 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. e. Provide a complete and detailed history of the responding firm 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. f. Provide a list of all facilities managed by the responding firm on behalf of a public entity that host major league professional sports franchises. g. Provide an explanation of the responding firm s experience in working with public entities and other entities that market facilities for a public entity, including cooperative efforts. h. Provide examples of the non-sporting events the responding firm has booked at arenas similar to Jobing.com Arena, indicating the name of the event(s), where and when the event(s) occurred, and the event(s) attendance. Using specific examples, explain how the responding firm has effectively booked top-rated concert and family shows. C. Operational Plan a. Management Plan - Provide an explanation of the overall philosophy on how the responding firm would manage and operate the Jobing.com Arena. This may include: i. An overview of the plan for transitioning from the existing management entity to the responding firm, including key steps, a timeline of critical milestones and a description of roles and responsibilities; ii. A suggested management organizational chart for key management of the Jobing.com Arena, including positions at the corporate and local levels; iii. Description of the reporting structure between facility management and the responding firm s corporate offices and to the City; iv. Description of the resident management personnel that could be assigned to the Jobing.com Arena; 6

v. Actual examples of management/financial reports used by the responding firm to advise governmental and other external entities of performance. b. Marketing Plan Provide an explanation of the overall philosophy the responding firm would use to market the Jobing.com Arena, including: i. Provide an overview of marketing and promotional concepts that will further the goals of the Jobing.com Arena as a premier venue and maximize the benefits of the Jobing.com Arena to the greater Valley. ii. Describe responding firm s approach to booking/scheduling, promoting, advertising and marketing events at the Jobing.com Arena. iii. Identify any competing facilities managed by the responding firm, including any facilities in the State of Arizona or in the Southwest region, 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 Jobing.com Arena for booking events. Present a plan for preventing any conflict of interest in managing competing facilities. c. Financial Plan provide an explanation of the overall financial plan for the Jobing.com Arena, including: i. Summarize the proposed strategy for minimizing the annual operating expenses and maximizing the annual operating revenues of the Jobing.com Arena. As noted previously, the city will provide the most recent available operating and financial statements to those organizations deemed to meet the minimum qualification requirements, therefore your strategy should be based on your existing understanding of the Jobing.com Arena s operations and/or the responding firm s overall approach for maximizing revenues and minimizing expenses. Due to the current arrangement with the National Hockey League, the current year s operating statements may not be available. d. Anchor Tenant Plan Provide an explanation of the firm s experience with attracting an anchor tenant for a facility comparable to Jobing.com Arena, including: i. Provide substantiation of past experience successfully attracting an anchor tenant to an already existing facility comparable to Jobing.com Arena ii. Provide prospective anchor tenants being considered for Jobing.com Arena D. Compensation Proposal a. Please provide an outline of a potential compensation proposal that the responding firm may be willing to enter into if selected as the Jobing.com Arena manager. The City is seeking creative compensation proposals, which may include, but should not be limited to, the following basic structures: 7

i. At Risk Operator Structure in such a scenario, the selected entity would be solely responsible for the operations of Jobing.com Arena, retaining all operating revenues and accepting responsibility for all operating expenses, including any potential operating losses. ii. Base and Incentive Fee Structure under this plan, the selected firm 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. iii. Other Compensation Plan please identify any alternative compensation plans related to the operation of Jobing.com Arena 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 Jobing.com Arena and limit the City s operating exposure. b. Due to the preliminary nature of this RFP and the information provided, it is understood that any proposed compensation structure will be subject to review of the detailed financial information for Jobing.com Arena. 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 Jobing.com Arena. Special Terms and Conditions Term of Agreement with Option to Extend There shall be one (1) initial term of agreement for a five (5) year period. The City may, at its option and with the approval of the Lessee, extend the term of this agreement an additional two (2) terms of five (5) years for each renewable term at the end of the initial contract period. The Lessee shall be notified in writing by the City Materials Manager of the City's intention to extend the contract period at least thirty (30) calendar days prior to the expiration of the original contract period. Price adjustments will only be reviewed during contract renewal. Price All prices quoted shall be firm and fixed for the specified contract period. Insurance The Contractor, performing as an independent Contractor, is fully responsible for providing Workers Compensation or other applicable insurance coverage for itself and its employees throughout the term of this contract and any renewals; the City shall have no responsibility of liability for such insurance coverage. The Contractor must provide to the City of Glendale a copy of the policy or a certification by the insurance carrier showing the Contractor to have in effect during the term of this contract a General Liability Insurance policy, which shall be the primary coverage for Contractor activities under this contract. The coverage limits of such insurance shall not be less than those listed below. 8

The insurance company issuing the policy required above shall have an AM Best financial rating of A- or better and be authorized by the State of Arizona Department of Insurance to transact business within the State. The certificate and policy shall name the City of Glendale as an additional insured and shall be primary and non-contributory coverage. The City shall also be an additional insured to the full limits of the liability insurance purchased by the Contractor even if those limits of liability are in excess of those required by this contract. The City reserves the right to terminate any Contractor agreement if the Contractor fails to maintain such insurance coverage. The Contractor must provide certification of insurance compliance within 10 calendar days after notification of award. Certification must include: name and address of insurance company; policy number; liability coverage amounts; a statement the policy will not be canceled or failed to be renewed without thirty (30) days written notice to the City. Certification to be submitted to: Materials Management, 5850 West Glendale Avenue, Suite 317, Glendale, Arizona 85301. Minimum Scope and Insurance Commercial general liability insurance in the amount of $2,000,000 single limit per occurrence. Such insurance must include broad form contractual coverage, property damage and personal injury coverage, products/completed operations coverage, premises/operations coverage, personal/advertising injury coverage, and, if applicable, host liquor liability coverage. The general aggregate limit shall be twice the occurrence limit. Commercial automobile liability insurance for all owned, non-owned, and hired vehicles in the amount of $2,000,000 combined single limit for bodily injury and property damage per occurrence. Property coverage for all improvements and fixtures on the property in an amount not less than the full replacement value thereof. Such other types and amounts of insurance as the City s Risk Manager may reasonably determine to be necessary for the Contractor s operations. Workers Compensation -The Contractor must be in full compliance with the provisions of the Arizona Workers Compensation Law A.R.S. Section 23-901 et seq., as amended, and all rules and regulations of the Industrial Commission of Arizona. The Contractor shall secure payment of compensation to employees by insuring the payment of such compensation with the State Compensation Fund or any insurance company authorized by the Insurance Department of Arizona to transact business in the State of Arizona. The Contractor further agrees that he shall require any and all Sub-contractors performing work under the agreement to comply with said Workers Compensation Law. It is expressly 9

understood and agreed that all persons employed directly or indirectly by the Contractor, or any of his Sub-contractors, shall be considered the employees of such Contractor, or his Subcontractor(s). Permits and Licenses The Contractor shall be responsible for determining and securing, at his/her expense, any and all licenses and permits that are required by any statute, ordinance, rule or regulation of any regulatory body having jurisdiction in any manner connected with providing operations and maintenance of the facility. Such fees shall be included in and are part of the total proposal cost. During the term of the contract, the Contractor shall notify the City in writing, within two (2) working days, of any suspension, revocation or renewal. Performance Surety Requirements The performance surety shall be in the form of a bond, cashier's check, certified check or money order. Personal or company checks are not acceptable unless certified. Letters of credit are not acceptable. Individual sureties are not acceptable. The successful Contractor shall, at the time of entering into the contract, furnish a performance surety in the form of a bond, money order or certified or cashier's check, in the amount of $250,000 guaranteeing the faithful performance of the contract by the Contractor. If a bond is submitted, it must be written on the form provided by the City as an attachment to the proposal documents. The attorney-in-fact that executes the bond on behalf of the surety shall affix to the bond a certified and current copy of the power of attorney. The bond must be written by a surety with an AM Best financial rating of A- or better and be authorized by the State of Arizona, Department of Insurance to transact business within the State. Individual sureties and letters of credit are not acceptable. References The Contractor must provide with the offer four (4) references from companies or organizations in good standing with their respective state regulators for whom the Contractor has provided similar products/services in the last thirty-six (36) months. Also include company name, address, phone number, contact person, a description of the products/services provided with a description of any major variation to the requirements of this solicitation. Notice of Intent to Award Information about the recommended award for this solicitation will be posted on the Internet. The information will be available for review on the City of Glendale Materials Management Internet home page www.glendaleaz.com/purchasing immediately after the City has completed its evaluation process of the offers received. If you have any questions, or would like further information about an intended award, contact the contract analyst immediately. Any protest must 10

be submitted to the Materials Manager no later than seven (7) calendar days from the date of posting on the Internet. Financial Records and Audits The Contractor will maintain thorough financial records of its activities in accordance with generally accepted accounting principles. The City of Glendale reserves the right to audit the records of the Contractor once each year of the agreement term or at its convenience. The Contractor will pay to the City of Glendale the cost of executing the required audit. The Contractor will make available all sales records and posting information required to perform such an audit. The City of Glendale reserves the right to execute physical audits of the Contractor s posting to verify revenues at any time during the term of this contract. Indemnification To the fullest extent permitted by law, Contractor must defend, indemnify, and hold harmless City and its elected officials, officers, employees and agents (each, an Indemnified Party, collectively, the Indemnified Parties ), for, from and against any and all claims, demands, actions, damages, judgments, settlements, personal injury (including sickness, disease, death, and bodily harm), property damage (including loss of use), infringement, governmental action and all other losses and expenses, including attorneys fees and litigation expenses (each, a Demand or Expense ; collectively, Demands or Expenses ) asserted by a third-party (i.e. a person or entity other than City or Contractor) and that arises out of or results from the breach of this Agreement by the Contractor or the Contractor s negligent actions, errors or omissions (including any Subcontractor or other person or firm employed by Contractor), whether sustained before or after completion of the Project. This indemnity and hold harmless provision applies even if a Demand or Expense is in part due to the Indemnified Part s negligence or breach of a responsibility under this agreement, but in that event, Contractor shall be liable only to the extent the Demand or Expense results from the negligence or breach of a responsibility of Contractor or of any person or entity for whom Contractor is responsible. Contractor is not required to indemnify any Indemnified Parties for, form, or against any Demand or Expense resulting from the Indemnified Party s sole negligence or other faults solely attributable to the Indemnified Party. Foreign Prohibition Contractor certifies under A.R.S. 35-391 et seq. and 35-393 et seq., that it does not have, and during the term of this Agreement will not have, scrutinized business operations, as defined in the preceding statutes, in the countries of Sudan or Iran. 11

NOTE: In addition to completing this Section electronically and including it in the CD-ROM submittal, a printed version with original signature shall be submitted with CD-ROM at the time of offer due date and time. Respondent certifies that they have read, understand, and will fully and faithfully comply with this solicitation, its attachments and any referenced documents. Proposer also certifies that the prices offered were independently developed without consultation with any of the other Respondents or potential Respondents. Authorized Signature Company's Legal Name Printed Name Address Title City, State & Zip Code Telephone Number FAX Number Authorized Signature Email Address Date For questions regarding this offer: (If different from above) Contact Name Phone Number Fax Number Email Address FEDERAL TAXPAYER ID NUMBER: 12

Arizona Sales Tax No. Tax Rate Proposer certifies it is a: Proprietorship Partnership Corporation Minority or woman-owned business: Yes No 13