Rio Rancho Mayor Tom Swisstack and City Manager James Jimenez are hoping to lure in a new, successful management company for the Santa Ana Star Center.

On Monday, the city issued a request for proposal (RFP) for management and operations of its multi-purpose events center, which seats 6,500 people. Bids are due by 2 p.m. on Jan. 30 and Swisstack said a firm will be chosen within 60 to 90 days.

Global Entertainment, however, still operates the center and will operate it until a new management firm has been chosen. “We are trying to make this a smooth transition,” Swisstack said. “I think we have a cooperative effort with Global and we’re acknowledging that we are trying to end this in a peaceful fashion.”

Global has had some changes of their own as general manager and director of operations for the Star Center Matt Burcham resigned on Monday.

As for the new operator, Swisstack said it could be one firm that operates the center or different firms operating different aspects, like food, security, booking and general operations. He indicated he would prefer one general management firm.

“We are looking for the best qualified firm to run every aspect of the center,” Swisstack said. “Sometimes when you have individual firms running different operations there is a little competition or a little friction, but we will look at who is the best overall.”

According to the RFP, some of the duties include managing subcontracts, scheduling and promoting events, marketing, ticketing services and building/equipment maintenance. The firm will also be responsible for aiding the city in its transition from the current manager, Global Entertainment.

A non-mandatory, pre-proposal meeting will be held at 2 p.m. on Wednesday at the Santa Ana Star Center.

Interested firms must submit a management plan, which will be evaluated by Jimenez and other city staff chosen by Jimenez as well as an outside consultant.

The team evaluating the plans will use four criteria, awarding a possible 100 points.

A preference of up to five percent may be given to a local firm.

The largest chunk of the possible points, 35, comes from the firm’s approach to undertake the work described in the RFP.

Twenty-five possible points will be awarded for demonstrating an understanding of the city’s goals and objectives. Up to 20 points a piece will be awarded for budget projections and for the history, experience, and quality of past facilities managed by the firm.

To help oversee the project, the city will have an employee whose primary responsibility is to manage the contract. Jimenez said the city may hire a new employee or add the task to an existing employee’s job description.

Global, a Phoenix based-company, has yet to turn a profit managing the center since it opened in October of 2006.

The city signed a 10-year contract with Global in December of 2004. The contract, however, states that the city can terminate the contract if the center fails to produce sufficient revenue to cover debts the city incurred to build it.

In September, the city council directed city staff and Jimenez to conduct a review of how the Santa Ana Star Center is managed and operated.

Presently, the city is paying $1.4 million a year from the general fund to offset the $2.8 million a year debt service owed on $35.75 million bonds. The bonds were used to construct the 160,000-square-foot center in 2006.

Swisstack said that if the contract was not changed then the city would more than likely be on the hook for more than $2.3 million.

When the contract was signed in 2004, Global predicted profits from events would cover the payments.

To pay the debt service on these bonds, a surcharge of 12 percent is imposed on ticket sales, merchandise sales and all other revenue streams resulting from center operations. The state gets a two percent cut and the remaining 10 percent goes into a special debt service fund to provide for the required semiannual payments.

Making changes with the center has been one of the mayor’s focuses since being elected in March.

The debt service obligations for the Santa Ana Star Center run through June of 2024.