Meeting Summary
The City Council authorized the City Manager and City Attorney to execute a 5-year management services contract with Global Spectrum for the Heart of Oklahoma Exposition Center, with a 5-year renewal option. The approval is contingent upon identified modifications, including refining the non-solicitation clause. This decision aims to improve operational efficiencies, increase revenue, and secure an upfront capital investment for facility upgrades.
Key Decisions & Votes
Management Services Contract for Heart of Oklahoma Exposition Center
21:15The City Council authorized the City Manager and City Attorney to execute a 5-year contract with Global Spectrum (Spectra) for the management of the Heart of Oklahoma Exposition Center, with a 5-year renewal option. The approval is contingent on identified modifications, including refining the non-solicitation clause (6.3) to be more specific regarding management-level employees.
Upcoming Community Events
Youth Rodeo
Spectra staff will be on-site to observe operations for future efficiencies, staying out of the way.
International Youth Finals Rodeo
Free Fair
Financial Matters
Base Management Fee
An annual fixed fee proposed for management services.
Incentive Benchmarks (Quantitative)
Spectra can earn 20% of improvements over the $497,000 three-year average loss benchmark.
Incentive Benchmarks (Qualitative)
Spectra can earn up to $25,000 based on qualitative measures such as community engagement, innovative sales and marketing, and customer survey scores.
Upfront Capital Investment
Spectra's upfront investment to cover transition costs, corporate resources, account setup, marketing, website enhancements, an event marketing account, and facility upgrades.
Amortization of Investment
The $350,000 investment is amortized over 7 years. If the contract is not renewed after 5 years, the city would be responsible for paying back the remaining unamortized portion.
Projected Cumulative Savings
Projected savings over the first five years of the contract.
Projected Revenue Growth
Projected increase in revenue over the first five years of the contract.
Coming Up
Deadlines
- August 1st: Contract start date for Global Spectrum's management of the Expo Center.
Watch For
- Ratification of the final contract for management services at the Heart of Oklahoma Exposition Center at a regular meeting.
Announcements
- Health week is next week.
Agenda Summary
Management Services Contract for Heart of Oklahoma Exposition Center
Consideration and authorization to execute a contract with Global Spectrum (Spectra) for the management of the Heart of Oklahoma Exposition Center. The contract outlines a 5-year initial term with a 5-year option, a base management fee, incentive fees, and an upfront capital investment from Spectra.