CITY OF HURST REQUEST FOR QUALIFICATIONS FOR CONFERENCE CENTER MANAGEMENT SERVICES

Transcription

1 CITY OF HURST REQUEST FOR QUALIFICATIONS FOR CONFERENCE CENTER MANAGEMENT SERVICES The City of Hurst is seeking a full-service conference center operating company (Facility Operator) to manage the day-to-day operations of the Hurst Conference Center that is scheduled to open in the Fall of The successful Facility Operator will be awarded a 24-month contract with the City. At the City's option, the contract may be renewed for three additional 12-month periods. Please forward your qualifications in a sealed envelope to the address listed in Paragraph 1 of the Instructions to Prospective Facility Operators. Include one original and five copies. Designate on the front, lower, left-hand corner of your response envelope, the following: Qualification Reference Number: Subject: Qualifications for Conference Center Management Services Submission Deadline: 2:00 P.M., Wednesday, May 13, 2009 NOTE: Submissions received after this deadline cannot be considered. admin-conf cntr fac operator RFQ spec's-0409.doc (1)

2 TABLE OF CONTENTS Scope and Intent...Cover Page Instructions to Prospective Facility Operators...Page 3 Requested Services...Page 4 Signature Page...Page 7 Insurance Requirements, Attachment I...Page 8 admin-conf cntr fac operator RFQ spec's-0409.doc (2)

3 INSTRUCTIONS TO PROSPECTIVE FACILITY OPERATORS 1. SUBMISSION ADDRESS AND DEADLINE Completed proposals will be received in Risk/Purchasing, City Hall, 1505 Precinct Line Road, Hurst, TX until the proposal submission deadline (closing time and date) as stated on the cover page. Proposal responses received after the closing time and date will be returned to the sender unopened. Faxed responses are not considered sealed and cannot be accepted. 2. SIGNATURES All proposals are required to be signed by an authorized representative of the entity submitting the proposal. Proposals received unsigned will not be accepted. 3. DURATION OF CONTRACT AND FEE ADJUSTMENTS The successful Facility Operator will be awarded a twenty four (24) month contract effective the date of award. Prices must not be increased for the entire initial contract period. At the City s option, the contract may be renewed for three (3) additional twelve (12) month periods, then from month-to-month until a new contract is established or the contract is terminated. The service provided under this contract may be subject to a price adjustment at the time of each renewal based on mutual agreement between the City and the Facility Operator. Any request for a price increase must be presented to the City at least 90 days before the expiration of the current contract. 4. TERMINATION OF AGREEMENT The City reserves the right to terminate the contract with thirty (30) days written notice if the successful Facility Operator fails to perform in a manner acceptable to the City. Upon delivery of such notice by the City to the successful Facility Operator, the Facility Operator shall discontinue all services in connection with the performance of this contract and shall proceed to cancel promptly any existing orders and contracts insofar as such orders or contracts are chargeable to this contract. As soon as practicable after receipt of notice of termination, the Facility Operator shall submit a statement to the City for payment of that portion of the contract successfully performed. 5. INSURANCE The successful Facility Operator shall meet the minimum insurance requirements as defined in Attachment II. admin-conf cntr fac operator RFQ spec's-0409.doc (3)

4 REQUESTED SERVICES INTRODUCTION The City of Hurst is seeking a full-service conference center operating company (Facility Operator) to manage the day-to-day operations of the Hurst Conference Center that is scheduled to open in the Fall of Prospective management companies will be charged with the responsibility of representing the City to area businesses, consumer show promoters, and area residents seeking a top quality venue for social events. We expect the prospective operator of the facility to provide full-service meeting coordination, and established a negotiable marketbased pricing schedule of rental rates and service fees. The City is open to the concept of a management company leasing the facility from the City in exchange for a base rent and a predetermined number of days the facility will be used by the City. The City has reasonable expectations of rent schedule and does not expect the rent to cover the facility s capital costs or debt service. OVERVIEW OF HURST The City of Hurst is located half way between downtown Fort Worth and DFW Airport and has an estimated population of 38,500. As Hurst is surrounded by numerous other cities, the estimated population within a ten-minute drive is approximately 335,000. Because Hurst is 96% built out, city planners aggressively pursue high-quality, market-based, mixed-use projects that responsibly redevelops older projects that are under utilized. Hurst and the surrounding area are home to the following companies that are known to book routine meetings: Bell Helicopter, IBM, Mary Kay, and Con-Way Southern Express. Hurst and the surrounding cities have six nationally branded hotels with 626 guestrooms. The following are located within walking distance of the proposed site: Hyatt Place with 125 rooms that was renovated in Hampton Inn and Suites with 96 rooms that opened in Holiday Inn Hotel and Suites with 90 rooms that opened in Additional hotel development is likely as there are adjacent and nearby tracts that will become viable for hotel development in future years. PROJECT DESCRIPTION Our market study confirms that an unmet need exists for a state-of-the-art meetings facility that can accommodate small day meetings, large banquets, and community-based consumer shows. Hurst is well located for accommodating these events because it is connected to the rest of the Dallas-Fort Worth area via two major freeways traveled by an estimated 175,000 cars per day. Meetings demand in the area has strong counter-cyclical patterns with midweek corporate meetings and weekend banquets and small regional consumer shows. admin-conf cntr fac operator RFQ spec's-0409.doc (4)

5 The City is building a state-of-the-art meeting facility encompassing 50,000 square feet and 250 parking spaces of which 190 are located under the building. Components of the facility will include: A 14,400-square foot hotel-quality ballroom with divisible areas as small as 900 square feet; Six meeting rooms totaling 5,700 square feet; A 2,500-square foot patio area with a water feature and fireplace that can be used for receptions, weddings, and other special events; A sophisticated board room with 15 executive chairs over looking the City s signature view down Thousand Oaks Drive; A 1,200-square foot prep kitchen area to be used by off-site caterers; and A spacious prefunction area with high levels of finish. The City has plans to place decorative signage with a scrolling marquee visible from Highway 121/183 (Airport Freeway) that will advertise upcoming events. The facility will be equipped with state-of-the-art audio-visual equipment and top quality tables, chairs and portable risers. A copy of the floor plans for the facility is available for download at FACILITY OPERATOR RESPONSIBIITIES The Facility Operator will be responsible for the successful operation of the facility with particular attention to the following areas: Set operating budget of revenues, expenses, and reserve for replacement; Set market based rental rates and booking policy; Recruit and manage staff for professional meeting coordination; Provide for top quality catering by either operating in-house catering department or negotiating with local restaurateurs; Proactively market the facility to area companies; and Special consideration will be given to responders that actively pursue the promotion of regional consumer shows. OPERATING EXPECTATIONS Based on the results of our market study updated in 2008, the proposed facility could attract more than 78,000 attendees annually by the third year of operation and generate nearly $975,000 in rental revenue and approximately $1,005,000 in catering revenue (expressed in 2007 dollars). A copy of the consultants report discussing demand segments and potential competitors is available upon request. admin-conf cntr fac operator RFQ spec's-0409.doc (5)

6 We expect the operating revenue of the facility to cover all its operating costs beginning the second full year of operation. We do not expect facility operations to retire any of the debt incurred in developing the facility. The facility will be equipped with a caterer s preparation kitchen with the intent that the Facility Operator will maintain an approved list of area caterers (and restaurants) to provide the highest quality food services to the facility. The Facility Operator will set minimum standards for caterers and be allowed to collect a commission from the caterers for providing lead generation and meeting coordination. The Facility Operator will be allowed to hold the liquor license for the facility and keep the associated profit. The Facility Operator will have the freedom to pursue events that maximizes revenue to the center and profit to the operator within the bounds of the market demand and competitor pricing. With respect to consumer shows, the Facility Operator will have the freedom to self-promote or co-promote consumer shows by sharing in the gate fees, exhibitor fees, and advertising costs so long as events meet certain moral and ethical standards. The City will declare one year in advance up to 20 specific dates that will be used for City sponsored events. For these events, the Facility Operator will waive the caterer food service commissions. CAPITAL CONSIDERATION AND RESERVE FOR REPLACEMENT The City has budgeted for the furniture, fixtures, and equipment (FF&E) for the facility to ensure the highest quality and longevity. The City will seek input from the Facility Operator on the specifications of the equipment. Through mutual determination between City and Facility Operator, a reserve for replacement account will be established and held by the City. The Facility Operator will be allowed to apply for release of those funds for the replacement of FF&E capital items. Capital items purchased with public funds are subject to State and City procurement statutes. MINIMUM REQUIREMENTS OF FACILITY OPERATOR Applicant companies should have a minimum of five years experience operating conference centers and small exposition facilities. Applicant companies should submit the following materials (6 copies) for consideration by the City: Overview of the company List of current facilities managed or operated by Applicant List of past facilities managed or operated by Applicant Biographies of principals and staff of Applicant Company List of references from vendors, suppliers, and facility owners admin-conf cntr fac operator RFQ spec's-0409.doc (6)

7 Facility Operator s Company Name: Authorized Representative: Signed: Title: Address: City, State & Zip: Telephone: ( ) Fax #: ( ) Address: Date: admin-conf cntr fac operator RFQ spec's-0409.doc (7)

8 ATTACHMENT I INSURANCE SECTION A. Prior to the approval of a service contract by the City, the successful Facility Operator shall furnish a completed Insurance Certificate to the City, which shall be completed by an agent authorized to bind the named underwriters/insurance carriers to the coverages, limits, and termination provisions shown thereon. INSURANCE COVERAGE REQUIRED SECTION B. Subject to the Facility Operator s right to maintain reasonable deductibles in such amounts as are approved by the City, the Facility Operator shall obtain and maintain in full force and effect for the duration of this contract, and any extension hereof, at the Facility Operator s sole expense, insurance coverage written by companies approved by the State of Texas and acceptable to the City, in the following types and amounts: 1. TYPE Workers Compensation and Employer s Liability Statutory AMOUNT $100,000/500,000/100, TYPE Commercial General (Public) Liability insurance including coverage for the following: a. Premises Operations b. Independent contractors c. Products/completed operations d. Personal injury e. Advertising injury f. Contractual liability g. Medical payments AMOUNT Combined single limit for bodily injury and property damage in the amount of $2 Million per occurrence or its equivalent. 3. TYPE Comprehensive Automobile insurance, including coverage for loading and unloading hazards, for: a. Owned/leased vehicles b. Non-owned vehicles c. Hired vehicles AMOUNT Combined single limit for bodily injury and property damage in the amount of $1 Million per accident or its equivalent. admin-conf cntr fac operator RFQ spec's-0409.doc (8)

9 4. TYPE Garage Liability or similar insurance to cover exposures arising from the management of the conference center parking facilities. AMOUNT $1 Million per occurrence and aggregate 5. TYPE Liquor Liability insurance including coverage for the following: a. Assault & Battery Coverage b. Defense Costs c. Employees Covered d. Damage Definition Includes Mental Damages AMOUNT Combined single limit for bodily injury and property damage in the amount of $2 Million per occurrence or its equivalent REQUIRED PROVISIONS The Facility Operator agrees that with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate, or its attachment, the following required provisions: A. Name the City of Hurst and its officers, employees, and elected representatives as additional insureds, (as the interest of each insured may appear) as to all applicable coverage; B. Provide for 30 days notice to the City for cancellation, nonrenewal, or material change; 10 days notice for workers compensation coverage; C. The Facility Operator agrees to waive subrogation against the City of Hurst, its officers, employees, and elected representatives for injuries, including death, property damage, or any other loss to the extent same may be covered by the proceeds of insurance; D. All copies of the certificates of insurance shall reference the project name or bid number for which the insurance applies; admin-conf cntr fac operator RFQ spec's-0409.doc (9)

10 E. Provide for notice to the City of Hurst at the two addresses shown below by registered mail. NOTICES The Facility Operator shall notify the City in the event of any change in coverage and shall give such notices not less than 30 days prior to the change. The notice must be accompanied by a replacement Certificate of Insurance. All notices shall be given to the City at the following two addresses: City Administration City Hall 1505 Precinct Line Road Hurst, TX Risk/Purchasing City Hall 1505 Precinct Line Road Hurst, TX admin-conf cntr fac operator RFQ spec's-0409.doc (10)