Resolution 2018-30507 RESOLUTION NO. 2018.30507
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN
RECOMMENDATION OF THE CITY MANAGER AND WAIVING, BY 5/7TH
VOTE, THE COMPETITIVE BIDDING REQUIREMENT PURSUANT TO
SECTION 2-367 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN
THE BEST INTEREST OF THE CITY, AND APPROVING, IN SUBSTANTIAL
FORM, AMENDMENT NO. 2 TO THE CITY'S AGREEMENT WITH SERVICE
AMERICA CORPORATION D/B/A CENTERPLATE ("CENTERPLATE") FOR
CATERING CONCESSIONS AT THE CITY OF MIAMI BEACH CONVENTION
CENTER, WITH SAID AMENDMENT NO. 2 RESTRUCTURING THE
FINANCIAL TERMS OF THE AGREEMENT TO PROVIDE FOR CITY TO
RECEIVE 95% OF THE NET OPERATING PROFIT OF THE CATERING AND
CONCESSION OPERATIONS AT THE CONVENTION CENTER, AND
EXTENDING THE TERM OF THE AGREEMENT FOR AN ADDITIONAL TWO
(2) YEAR PERIOD, COMMENCING ON OCTOBER 1, 2020 AND EXPIRING
ON SEPTEMBER 30, 2022; AND FURTHER, AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE THE FINAL AMENDMENT NO. 2 UPON
FORM APPROVAL BY THE CITY ATTORNEY.
WHEREAS, the City is the owner of the Miami Beach Convention Center (the
"Convention Center" or"Facility") located in the City of Miami Beach, Florida; and
WHEREAS, on December 12, 2012, the Mayor and City Commission approved the
issuance of Invitation to Negotiate No. 059-2013ME For Food and Beverage for the Convention
Center(the ITN); and
WHEREAS, on June 5, 2013, the City adopted Resolution No. 2013-28241, accepting
the proposal submitted by Centerplate pursuant to the ITN, and the parties thereby executed the
Agreement as of June 5, 2013; and
WHEREAS, the initial term of the Agreement expired on June 30, 2016; and
WHEREAS, in Resolution No. 2016-29369, and to ensure continuity of services for a full
operational year following the completion of the Miami Beach Convention Center Renovation
Project, the Mayor and City Commission waived the competitive bidding requirement and
approved an additional two-year extension of the term, following the expiration of all contractual
renewal options, for a term expiring on September 30, 2020; and
WHEREAS, to ensure that a high standard of quality catering and food and beverage
operation is in place during the critical initial years following the completion of the Convention
Center Project, the City Manager recommends the waiver of the competitive bidding
requirement and approval of the proposed Amendment No. 2, which would (1) extend the term
of the Agreement for an additional two years; and (2) restructure the financial terms to provide
additional financial benefits to the City for the remaining two years of the term, as well as for the
extended term, in the form of 95% of the net operating profit of the catering and F&B operations
at the MBCC (after payment of all operating expenses) ; and
WHEREAS, the proposed Amendment No. 2 is attached hereto as Exhibit 1 to the
Commission Memorandum accompanying this Resolution.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the written recommendation of the City Manager and waive, by 5/7th
vote, the competitive bidding requirement pursuant to Section 2-367 of the City Code, finding
such waiver to be in the best interest of the City, and approves, in substantial form, Amendment
No. 2 to the City's Agreement with Service America Corporation D/B/A Centerplate
("Centerplate") for catering concessions at the City of Miami Beach Convention Center, with
said Amendment No. 2 restructuring the financial terms of the Agreement to provide for City to
receive 95% of the net operating profits of the catering and concession operations at the facility,
and extending the term of the Agreement for an additional two (2) year period, commencing on
October 1, 2020 and expiring on September 30, 2022; and further, authorize the Mayor and City
Clerk to execute the final Amendment No. 2 upon form approval by the City Attorney.
PASSED AND ADOPTED this /a day of September, 2018.
Attest: / Mayor Dan Gelber
City Clerk Rafael E. Granado
APPROVES STO
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MIAM BEACH Date SizlB
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfi.gov
COMMISSION MEMORANDUM
To: Mayor Dan Gelber and Members of he City Com ssion
FROM: Jimmy L. Morales, City Manager
•
DATE: September 12, 2018 Il
SUBJECT:
A RESOLUTION OF THE MAYOR D CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING HE WRITTEN RECOMMENDATION OF THE
CITYMANAGE AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING
REQUIREMENT PURSUANT TO SECTION 2-367 OF THE CITY CODE, FINDING
SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY,AND APPROVING,
IN SUBSTANTIAL FORM,AMENDMENT NO.2 TO THE CITY'S AGREEMENT WITH
SERVICE AMERCIA CORPORATION D/B/A CENTERPLATE ("CENTERPLATE")
FOR CATERING CONCESSIONS AT THE CITY OF MAIM! BEACH CONVENTION
CENTER, WITH SAID AMENDMENT NO. 2 RESTRUCTURING THE FINANCIAL
TERMS OF THE AGREEMENT TO PROVIDE FOR CITY TO RECEIVE 95%OF THE
NET OPERATING PROFIT OF THE CATERING AND CONCESSION OPERATIONS
AT THE CONVENTION CENTER, AND EXTENDING THE TERM OF THE
AGREEMENT FOR AN ADDITIONAL TWO (2)YEAR PERIOD, COMMENCING ON
OCTOBER 1, 2020 AND EXPIRING ON SEPTEMBER 30, 2022; AND FURTHER,
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL
AMENDMENT NO. 2 UPON FORM APPROVAL BY THE CITY ATTORNEY.
RECOMMENDATION
Administration recommends approval
ANALYSIS
The City of Miami Beach entered into a catering and concessions service agreement Miami
Beach Convention Center("MBCC') on June 5, 2013 with Service America Corporation d/b/a
Centerplate ('Centerplate'). This agreement was amended, by Amendment No. 1 dated July
1, 2016, to extend the agreement from July 1, 2016 to September 30, 2020.
The proposed amendment extends the term of the Agreement through to September 2022
and modifies the management and fee structure of the agreement. In consideration of the
two year extension, Centerplate will make a capital investment of$150,000 toward food
service capital projects that is in addition to the $300,000 capital investment required in the
existing contract.
The goal of the modification is to transition the relationship, between the City and
Centerplate, from the current Concession Agreement, where Centerplate was granted a right
to make all catering and concession management and operational decisions for MBCC and
received all profits for their services, to an agreement where the City and Centerplate are
positioned as partners (financially and operationally)for more success and increased overall
flexibility in the relationship. Centerplate will continue to provide food and beverage service
and be a key participant. The key opportunity, for the City, is to position the City as the
decision maker in strategic decisions and reap the financial benefit of higher margins. This is
especially important with the opening of the Grand Ballroom and opportunities for social
catering that the ballroom will create, but which will also necessitate greater flexibility than in
the past.
CONCLUSION
Under the new management structure decisions that will have a financial impact on the
catering and food & beverage operations at the Facility (whether such decisions are revenue-
related or expense-related), the City is the lead decision maker, including annual review and
approval of Centerplate's proposed line item budget (prepared in accordance with the City's
instructions and requirements including staffing and wage rate(s), and other employee
expense information) and any proposed modifications to the budget during the year.
The new financial structure would be
Management Fee: Instead of the current concession agreement which is a flat fee
based on revenue which is a 20-26% fee to the city, which flows through Spectra and is
paid to the City.
Centerplate will receive a management fee of 7% of gross receipts. This provides an
incentive for all parties to have a focused sales effort and grow revenue for the future.
• Net Operating Profit: Net Operating Profit will be distributed to the City and
Centerplate monthly. The City shall receive 95% of the Net Operating Profit, and
Centerplate will receive 5% of the Net Operating Profit. This also solidifies the collective
goal to operate efficiently while delivering high quality. Profit sharing at 5% is an
opportunity for the City to make more money; this is an incentive to increase the margins
within food and beverage and allow the City full control and decision making related to
pricing and overall market approach.
This structure is projected to increase the City's revenue potential by an estimated of 25%-
30% per year. Based on FY2019 and FY2020 CP projected Total Sales, revenue to the City,
over the course of the extension, is projected to be $5.8 million, based off of projected total
sales as well as a 35% margin. When compared to the current fee structure at 20% of gross
receipts the City is only projected to see $4.4 million in revenue over the course of the
extension. Thus, the new structure is estimated to deliver$1.4 million or 30% more revenue
to the City.
In addition to the potential for increased revenues and the additional capital investment of
$150,000, new agreement would provide the City with the following benefits:
Increased control over the financial and operational management which will give the
city the ability to actively participation insuring the most effective financial approach is in
place and have decision-making ability in delivering a first class experience for local
groups and conventions.
• Quality and service standards; staffing, selection of events, financial interests. The
City has developed a series of initiatives with Centerplate and Spectra and will now be
positioned to insure those standards are implemented and maintained. The City can also
be active in the pursuit of local social business and set parameters for pricing going
forward.
• This new fee structure is anticipated to deliver increase overall "net" revenue to the
City. This is due to the fact that the City will review all financial results monthly. The City
has conducted interviews with other Convention Centers and the net revenue that was
reported will deliver improved financial results.
Management fee structure instead of a concession agreement flat fee based on
revenue. This provides an incentive for all parties to have a focused sales effort and grow
revenue for the future.
Enhanced decision making, which will give the City full authority related to all decision
within food and beverage including pricing, quality, sales, marketing and P&L oversight.
The City will have final say in the staffing levels and personnel of the food and beverage
operation and organizational management.
The Administration believes that moving to the new model of operation with Centerplate and
extending the agreement by two (2)years will give the City the opportunity to fully implement
a solid food and beverage strategy and operation.
KB/hs
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN
RECOMMENDATION OF THE CITY MANAGER AND WAIVING, BY 517TH
VOTE, THE COMPETITIVE BIDDING REQUIREMENT PURSUANT TO
SECTION 2-367 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN
THE BEST INTEREST OF THE CITY, AND APPROVING, IN SUBSTANTIAL
FORM, AMENDMENT NO. 2 TO THE CITY'S AGREEMENT WITH SERVICE
AMERICA CORPORATION D/B/A CENTERPLATE ("CENTERPLATE") FOR
CATERING CONCESSIONS AT THE CITY OF MIAMI BEACH CONVENTION
CENTER, WITH SAID AMENDMENT NO. 2 RESTRUCTURING THE
FINANCIAL TERMS OF THE AGREEMENT TO PROVIDE FOR CITY TO
RECEIVE 95% OF THE NET OPERATING PROFIT OF THE CATERING AND
CONCESSION OPERATIONS AT THE CONVENTION CENTER, AND
EXTENDING THE TERM OF THE AGREEMENT FOR AN ADDITIONAL TWO
(2) YEAR PERIOD, COMMENCING ON OCTOBER 1, 2020 AND EXPIRING
ON SEPTEMBER 30, 2022; AND FURTHER, AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE THE FINAL AMENDMENT NO. 2 UPON
FORM APPROVAL BY THE CITY ATTORNEY.
WHEREAS, the City is the owner of the Miami Beach Convention Center (the
"Convention Center" or"Facility) located in the City of Miami Beach, Florida; and
WHEREAS, on December 12, 2012, the Mayor and City Commission approved the
issuance of Invitation to Negotiate No. 059-2013ME For Food and Beverage for the Convention
Center(the ITN); and
WHEREAS, on June 5, 2013, the City adopted Resolution No. 2013-28241, accepting
the proposal submitted by Centerplate pursuant to the ITN, and the parties thereby executed the
Agreement as of June 5, 2013; and
WHEREAS, the initial term of the Agreement expired on June 30, 2016; and
WHEREAS, in Resolution No. 2016-29369, and to ensure continuity of services for a full
operational year following the completion of the Miami Beach Convention Center Renovation
Project, the Mayor and City Commission waived the competitive bidding requirement and
approved an additional two-year extension of the term, following the expiration of all contractual
renewal options, for a term expiring on September 30, 2020; and
WHEREAS, to ensure that a high standard of quality catering and food and beverage
operation is in place during the critical initial years following the completion of the Convention
Center Project, the City Manager recommends the waiver of the competitive bidding
requirement and approval of the proposed Amendment No. 2, which would (1) extend the term
of the Agreement for an additional two years; and (2) restructure the financial terms to provide
additional financial benefits to the City for the remaining two years of the term, as well as for the
extended term, in the form of 95% of the net operating profit of the catering and F&B operations
at the MBCC (after payment of all operating expenses) ; and
WHEREAS, the proposed Amendment No. 2 is attached hereto as Exhibit 1 to the
Commission Memorandum accompanying this Resolution.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the written recommendation of the City Manager and waive, by 5/7 h
vote, the competitive bidding requirement pursuant to Section 2-367 of the City Code, finding
such waiver to be in the best interest of the City, and approves, in substantial form, Amendment
No. 2 to the City's Agreement with Service America Corporation D/B/A Centerplate
("Centerplate") for catering concessions at the City of Miami Beach Convention Center, with
said Amendment No. 2 restructuring the financial terms of the Agreement to provide for City to
receive 95% of the net operating profits of the catering and concession operations at the facility,
and extending the term of the Agreement for an additional two (2) year period, commencing on
October 1, 2020 and expiring on September 30, 2022; and further, authorize the Mayor and City
Clerk to execute the final Amendment No. 2 upon form approval by the City Attorney.
PASSED AND ADOPTED this day of September, 2018.
Attest: Mayor Dan Gelber
City Clerk Rafael E. Granado
APPROVE. .3 TO
FORM &LAN,' "JAGE
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City Attorney R Date
AMENDMENT NO.2 TO THE AGREEMENT BETWEEN
THE CITY OF MIAMI BEACH AND
SERVICE AMERICA CORPORATION D/B/A CENTERPLATE
FOR CATERING CONCESSIONS AT THE
CITY OF MIAMI BEACH CONVENTION CENTER
This Amendment No. 2 is made effective as of ("Effective Date"), by and
between the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation having its
principal office at 1700 Convention Center Drive, Miami Beach, Florida, 33139 ("City"), and
Service America Corporation d/b/a CENTERPLATE, a Delaware corporation whose address is
2187 Atlantic Street, Stamford, CT 06902 ("Concessionaire" or "Centerplate"), and hereby
amends the Catering and Concessions Services Agreement dated as of June 5, 2013 (the
"Agreement"), as follows:
RECITALS
WHEREAS, the City is the owner of the Miami Beach Convention Center (the
"Convention Center"or"Facility")located in the City of Miami Beach, Florida; and
WHEREAS,the parties entered into the Catering and Concessions Services Agreement on
June 5, 2013 (the"Agreement"); and
WHEREAS, the parties entered into an extension of the Agreement from July 1, 2016
through and including September 30, 2020, in accordance with Amendment No. 1 dated July 1,
2016 (the"First Amendment"); and
WHEREAS, the parties now desire to extend the term of the Agreement through and
including September 30, 2022 and to modify the fee structure and certain other terms and
conditions of the Agreement as set forth herein;
NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements
herein contained, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged,the parties intending to be legally bound,hereby agree as follows:
1. The aforesaid recitals are true and correct and incorporated by reference herein.
2. Unless otherwise expressly stated herein, all capitalized terms shall have the
respective meanings ascribed in the Agreement.
3. Section 1 is hereby amended to include the following terms:
"Management Fee" shall mean the percentage of Gross Receipts that Centerplate
shall receive, as more fully described in Section 6 of this Amendment No. 2, in
consideration for providing catering and food and beverage services at the Facility.
"Net Operating Profits"shall be calculated by subtracting the Operating Expenses
from the total Gross Receipts. The Operating Expenses shall mean the out-of-
pocket costs incurred and paid by Concessionaire pursuant to this Agreement and
the Annual Operating Budget (as defined herein), and shall consist of, the actual
expense of the food and beverage product, on-site direct payroll, payroll taxes,
fringe benefits, depreciation and amortization of the Additional Investment
(including Centerplate's Additional Investment made in Amendment No. 1), costs
paid to service providers and other expenses directly related to providing catering
and food and beverage services at the Facility, repair and maintenance, cleaning,
credit card fees (net of discounts or fees received from credit card or debit card
providers),office supplies,insurance, contractual reserves required pursuant to the
Agreement,including the Marketing Reserve Fund, Capital Reserve Fund, and the
Management Fce.
"Net Operating Losses" shall mean the deficit, if any, of Gross Receipts less the
Operating Expenses.
4. Section 1 definition of"Gross Receipts" is hereby deleted and replaced with the
following:
"Gross Receipts"shall mean the total amounts received by Concessionaire from the
provision of Services hereunder, whether arising from sales, rentals, license fees,
service charges, administrative fees, concession fees or other payments, and
whether evidenced by cash, check, credit, charge account or otherwise, and shall
include, without limitation, the amounts received from the sale of all Food and
Beverage Items at the Facility, together with the amoumt received from all orders
taken or received at the Facility, whether such orders be filled from there or
elsewhere,less only: (1)the amount of any federal,State or local sales or other such
tax collected in connection with the sale of Food and Beverage Items and paid to
the appropriate Governmental Authority; and (2) the amount of any gross receipts
tax, rent tax or similar tax.
5. Beginning October 1, 2018, the current structure of the Agreement is hereby
changed from a commission based structure to a Profit Sharing/Management Fee structure.
6. Section 5.3 is hereby deleted and replaced with the following:
"Centerplate shall receive a Management Fee equal to (7%) of Gross Receipts,
payable in twelve(12)monthly installments."
7. The Net Operating Profit shall be distributed to the City and Centerplate monthly,
unless otherwise agreed to by the City and Centerplate. The City shall receive 95% of the Net
Operating Profit, and Centerplate shall receive 5% of the Net Operating Profit. Centerplate shall
not be entitled to any compensation under this Agreement, except for the Management Fee, and
5%of the Net Operating Profit, if any.
8. If during any monthly accounting period there are Net Operating Losses,
Centerplate shall accrue any such deficit until the next monthly accounting period when sufficient
Net Operating Profits are available to pay Centerplate any amount due, with an annual settlement
or"true up"of Net Operating Losses accrued from October 1 through September 30th of each year
of the Renewal Term. Any Net Operating Losses, if any, shall be reimbursed to Centerplate
annually, and payable within forty-five (45) days of City's acceptance of the final accounting
thereof.
9. The renewal term of the Agreement ("Renewal Term") shall be extended for two
(2) years. This renewal shall commence on October 1, 2020 and shall expire at midnight on
September 20,2022 ("Termination Date"), unless earlier terminated pursuant to the provisions of
this Agreement.
10. Section 4.2 is hereby amended to include the following:
"4.2. Additional Capital Investment. Centerplate shall directly invest up to
$300,000 carried over as of October 1, 2018, plus an additional $150,000
("Additional Investment") toward food service capital projects ("Additional
Investment Expenditures"), with the nature and scope of such Additional
Investment Expenditures to be made by mutual agreement of the parties."
11. The Additional Investment shall be amortized and/or depreciated over the existing
and extended term, commencing on the date of expenditure or date or installation, whichever is
last in time. If the Agreement expires or terminates for any reason whatsoever prior to
Centerplate's complete amortization of the Additional Investment,the unamortized portion of the
Additional Investment shall be reimbursed to Centerplate by the City before Centerplate shall be
required to vacate the Convention Center.
12. Beginning on September 1, 2018,and continuing on an annual basis thereafter,one
percent(1%)of Gross Receipts shall be contributed to the Equipment Replacement Reserve Fund.
The Equipment Replacement Reserve Fund shall be used by Centerplate to purchase, repair,
replace, or update equipment required by Centerplate. Centerplate will present desired
expenditures to City for approval. Unused amounts in the Equipment Replacement Reserve Fund
shall be carried forward from year to year. Any funds remaining in the Equipment Replacement
Reserve Fund at the end of the Renewal Term shall be paid to the City.
13. As it relates to decisions that will have a financial impact on the catering and food
& beverage operations at the Facility (whether such decisions are revenue-related or expense-
related),the City Manager(or his or her designee as stated from time to time in writing by the City
Manager)is the lead decision maker. In furtherance of the foregoing:
a. Centerplate shall annually prepare and submit to the City Manager, prior to
February 1°` of each City fiscal year (Oct. 1-Sept. 30'h of each calendar year)
(each, a"Fiscal Year"), an annual operating budget for the next Fiscal Year,to
meet the scope of services and objectives under this Agreement (the "Annual
Operating Budget"). Such budget shall contain appropriate line items for Gross
Receipts and Operating Expenses (including the Management Fce, Marketing
Reserve Fund and Equipment Reserve Fund), and the projected Net Operating
Profit or Net Operating Loss, along with a proposed cash flow budget based on
the proposed Annual Operating Budget.
h. The Annual Operating Budget is to be prepared in accordance with the City's
instructions and requirements. The Annual Operating Budget shall be
presented in a monthly format,with comparisons to the prior year(commencing
in the second Fiscal Year) and current year budget and actual. The Annual
Operating Budget shall include a detailed listing of recommended staffing and
wage rate(s), and other employee expense information, for those employees
who will be funded by the City as an Operating Expense.
c. The Annual Operating Budget shall be subject to approval by the City Manager.
The City shall make reasonable efforts to approve any proposed Annual
Operating Budget within forty-five (45) days after receipt thereof; provided,
however, that the City shall not be penalized, or otherwise waive its rights to
approve or disapprove the proposed budget, or any portion thereof,if the City
exceeds the forty-five(45) day period provided herein.
d. Centerplate, in incurring Operating Expenses hereunder, shall not exceed the
Annual Operating Budget, without the prior written approval of the City
Manager. hi the event Centerplate is required to make expenditures in excess of
the amount included in the Annual Operating Budget,because of emergencies or
operational necessity, and provided such expenditures are reasonable and
otherwise reimbursable as an Operating Expense hereunder, Centerplate shall
request written approval from the City Manager prior to making such
expenditure(s). The Annual Operating Budget may be modified during any
contract year at the direction of, and subject to the prior written approval of,the
City Manager, or his/her authorized designee, provided, however, that any
modifications that are anticipated to lead to Net Operating Losses for any Fiscal
Year shall be subject to the prior approval of the City Commission. The City
understands and agrees that imposed discounts affect the economic performance,
and the City does not hold Centerplate accountable for budget differences that
result from imposed discounts. Furthermore, the parties understand and agree
that the Annual Operating Budget includes income and expense projections that
are not guaranteed by either party, and actual results may vary, provided,
however,that Centerplate shall not exceed the Annual Operating Budget without
the prior written approval of the City Manager or City Commission (as
applicable). The parties agree to meet monthly, after each finalized P&L, to
review the previous months results and to discuss material changes to the yearly
forecast,and any budget amendments, if any, that may be required.
d. Notwithstanding any provision to the contrary in this Agreement, as amended,
Centerplate's consent shall be required for any request by the City for
Centerplate to reduce its pricing for any Services (including labor), such that
any Services would be offered on an in-kind basis or below cost. Unless
Centcrplate has agreed to any such request, all pricing determinations shall be
made in accordance with the Agreement's terms(including Section 6.5 thereof),
and Centerplate shall have no obligation to provide any Services on an in-kind
or below cost basis.
e. With respect to the operating budget for Fiscal Year 2018/19,subject to the City
Manager's review and approval of the detailed line item operating budget for
Fiscal Year 2018/19, Centerplate shall commence performance of the Services,
as of October I, 2018, consistent with the FY 2018/19 budget information
Centerplate has previously submitted to the City.
f. The parties will use diligent, good-faith efforts to collaborate with each other.
However,after such diligent,good-faith efforts have been exhausted, and in the
event of an unresolved dispute,the City Manager's determination shall be final,
for purposes of the administration and operation of the catering and food and
beverage services provided at the Facility. If, as a result of any such
administrative determination, either party believes it has a claim arising under
the Agreement, or that any amounts are due to it pursuant to the terms of the
Agreement, then the parties agree to mediate any such dispute in good faith
before proceeding to any legal remedy or enforcement in a court of competent
jurisdiction. Any use of a third-party mediator, if any, shall be at the mutual
agreement of the parties, and the mediation costs shall be borne equally by the
parties.
14. Except as expressly set forth in this Amendment No. 2, all other terms and
conditions set forth in the Agreement shall remain in full force and effect. If there is any
inconsistency between the provisions of this Amendment No. 2 and the provisions of the
Agreement or Amendment No. 1, the provisions of this Amendment No. 2 shall prevail.
[Signature Page Follows]
y1
IN WITNESS WHEREOF, thoarties have hereunto affixed their corporate seals attested bythe
P rP
hand(s) of their proper officer(s) duly authorized in that behalf
FOR CITY: CITY OF MIAMI BEACH,FLORIDA
ATTEST:
By:
Rafael E.Granado,City Clerk Dan Gelber,Mayor
Date
FOR CENTERPLATE SERVICE AMERICA CORPORATION
DBA CENTERPLATE
ATTEST:
By:
Secretary Title
Print Name Hadi Monavar
Date Date
APPROVED AS TO
FORM&LANGUAGE
&FOR EXECUTION
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City Attorney Risio to
Resolutions - R7 V
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 12, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN RECOMMENDATION OF
THE CITY MANAGER AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE
BIDDING REQUIREMENT PURSUANT TO SECTION 2-367 OF THE CITY CODE,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND
APPROVING AMENDMENT NO. 2 TO THE CITY'S AGREEMENT WITH SERVICE
AMERICA CORPORATION D/B/A CENTERPLATE ("CENTERPLATE") FOR
CATERING CONCESSIONS AT THE CITY OF MIAMI BEACH CONVENTION
CENTER, WITH SAID AMENDMENT NO. 2 RESTRUCTURING THE FINANCIAL
TERMS OF THE AGREEMENT TO PROVIDE FOR CITY TO RECEIVE 95% OF
THE NET OPERATING PROFIT OF THE CATERING AND CONCESSION
OPERATIONS AT THE CONVENTION CENTER, AND EXTENDING THE TERM
OF THE AGREEMENT FOR AN ADDITIONAL TWO (2) YEAR PERIOD,
COMMENCING ON OCTOBER 1, 2020 AND EXPIRING ON SEPTEMBER 30, 2022;
AND FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE
AMENDMENT NO. 2.
(ITEM TO BE SUBMITTED IN SUPPLEMENTAL)
RECOMMENDATION
ITEM TO BE SUBMITTED IN SUPPLEMENTAL.
ANALYSIS
CONCLUSION
Legislative Tracking
Tourism, Culture and Economic Development
ATTACHMENTS:
Description
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❑ Centerplate Extension Reso
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