DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Patricia Muzquiz Cantor, Executive Director
COUNCIL DISTRICTS IMPACTED: 2
SUBJECT:
Event Merchandise Services at the Alamodome
SUMMARY:
An Ordinance authorizing an Event Merchandise Services Agreement with River City Merchandising, LLC, to provide staffing and equipment to sell event approved merchandise at the Alamodome during event days for a one-year term with two, one-year renewal options. This is a revenue agreement valued at approximately $220,000.00 annual commissions to the City and approximately $30,000.00 in annual service fees to River City Merchandising, LLC.
BACKGROUND INFORMATION:
This ordinance is requesting City Council consideration and action for a proposal submitted by River City Merchandising, LLC to provide staffing and equipment to sell event approved merchandise at the Alamodome during event days. The Convention and Sports Facilities (CSF) Department hosts a wide range of events at the Alamodome. The Alamodome is a 65,000 seat multi-purpose sports and entertainment facility that hosts events such as concerts, boxing, cheer competitions, motor sports, ice shows, conventions, community events, civic events, soccer, basketball and football games.
The City currently has an informal agreement for event merchandise services at the Alamodome. The new contract would provide consistency in servicing the events booked at the Alamodome.
On February 24, 2020, a Request for Proposal was released to solicit a vendor for event merchandise services. The RFP was advertised in the San Antonio Express-News, TVSA channel, the City’s Bidding and Contracting Opportunities website, the San Antonio e-Procurement System (SAEPS) and an email notification was released to a list of potential Respondents. The proposals were due on March 30, 2020. A total of one (1) firm responded to the RFP and was deemed eligible for review. Due the pandemic and CSF furloughs, the committee resumed the evaluation process in the fall.
The Evaluation Committee consisted of representatives from the Convention and Sports Facilities Department and Valero Alamo Bowl. The Evaluation Committee reviewed the one proposal on October 13, 2020. The proposal was evaluated based on the published criteria of the RFP, which included: Experience, Background, and Qualifications, Proposed Plan, Price, the Local Preference Program (LPP), and the Veteran-Owned Small Business Preference Program (VOSB). After committee review and discussion, River City Merchandising, LLC was recommended for award by the evaluation committee based on consensus scoring.
Due diligence conducted for the respondent to the above solicitation included a search of federal and state debarment lists, prohibited political contributions, conflicts of interest, delinquent City/County taxes, outstanding payments to the City, payment of state franchise fees as well as a search of the internet for pertinent business information. No material findings were noted that would prevent the City from awarding to the selected vendor.
River City Merchandising, LLC is a local small business in San Antonio with over 40 years of extensive experience in the event merchandise industry with clients throughout Texas, Louisiana, and Arizona.
The initial term of the agreement shall be July 1, 2021 through June 30, 2022. Two additional one-year renewals at the City’s option shall also be authorized by this ordinance.
ISSUE:
This contract will secure an event merchandise services provider that can work with Licensees that book events at the Alamodome and collect revenues for the Alamodome for these services.
This contract is within the scope of the SBEDA Program. However, due to lack of available firms and/or subcontracting opportunities, the Goal Setting Committee was unable to apply a SBEDA tool to this contract.
The Local Preference Program was applicable to this contract, and the recommended respondent is a local business headquartered within the incorporated San Antonio city limits.
The Veteran-Owned Small Business Preference Program was applicable to this contract. However, the recommended respondent is not a Veteran-Owned Small Business.
ALTERNATIVES:
Should this agreement not be approved, the Alamodome would need to enter into multiple informal agreements with a provider based on their availability to handle the event merchandise sales for events booked at the Alamodome. This would provide inconsistency in event merchandise services and would negatively impact events and revenue to the City.
FISCAL IMPACT:
This Ordinance authorizes the execution of an agreement for event merchandise services with River City Merchandising, LLC, to provide event merchandise services for the Convention and Sports Facilities Department. Annual commissions are expected to be $220,000.00 and $30,000.00 in service fees to River City Merchandising, LLC. This agreement is estimated to generate approximately $660,000.00 over the one-year initial term and the two, one-year renewal options of the agreement. All revenues generated from this agreement will be deposited into the Community and Visitor Facilities Fund.
RECOMMENDATION:
Staff recommends awarding the event merchandise services agreement to River City Merchandising, LLC for a one-year term with two, one-year renewal options. This agreement will generate approximately $250,000.00 in revenue during the initial term. Of this revenue, the City’s annual commissions are expected to be $220,000.00 and $30,000.00 in annual service fees to River City Merchandising, LLC.
This agreement was procured by means of a Request for Proposal and the Contract Disclosure Form is attached.