SOEC operator to receive extension
The private-sector operator of the South Okanagan Events Centre campus should be directly awarded a contract extension that could run through 2038, council is expected to hear today.
Spectra Venue Management (previously known as Global Spectrum) has been running the SOEC since it opened in 2008, with the Philadelphia-based company currently under contract until June 30, 2019.
City facilities manager Bregje Kozak writes in her report to council ahead of today’s meeting that staff has already come to terms with Spectra on a proposed contract extension at the company’s request.
Key terms of the 10-year deal, which would also include two five-year renewal options, include leaving the annual administration fee at $272,000 plus inflation, capping Spectra’s performance bonus at $100,000 annually and killing a performance penalty fee.
The proposal would also see $150,000 that had been earmarked by the city for attracting new events converted into general use funds for the greater benefit of the facility.
Kozak’s report also explains how staff, with the help of an outside adviser, ruled out either putting the contract to tender or brining it in-house.
In March 2013, the city issued requests for proposals for food and beverage, management, ticketing and marketing, and received responses from three companies, including Spectra.
“After an extensive evaluation and procurement process, the city stayed with Spectra because they knew the market and were able to provide the best value for Penticton,” writes Kozak. “Running another competitive RFP is unlikely to yield different results from those of 2013.
“An RFP process is time-consuming and expensive for both the city and proponents and should only be used if serious consideration needs to be given to replace the current vendor.”
As for bringing the service in-house, the city “does not have the expertise or resources to operate the faciltity with municipal staff,” says Kozak.
Also on council’s agenda are housekeeping changes related to political signage and a request for a manual recount following this fall’s municipal election.
Director of corporate services Laurie Darcus writes in her report that three people have asked council to fund a manual recount the day after the election to “dispel concerns” about the accuracy of vote-counting machines.
She estimates the cost of a manual recount at $4,500 to $6,500, but suggests rejecting the request outright.
“In speaking to Elections BC, they strongly recommend against a post-election manual count unless it is directed by judicial review,” Darcus writes.
“They also advised that the vote-tabulating machines that the City of Penticton uses have been shown to be accurate.”
Another contentious matter for council today will be the fate of an illegal, over-height retaining wall at 2753 Evergreen Dr. that has been the subject of previous stories in The Herald and Okanagan Weekend.
The meeting begins at 1 p.m. in council chambers with committee of the whole, followed immediately by the regular meeting, including the election issue.
Council will then reconvene at 6 p.m. for a public hearing on a proposal to rezone 1386 Commercial Way from wrecking yard to general industrial, before moving into other land matters, including the SOEC contract and the wall at 2753 Evergreen Dr.