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90-20044 RESO RESOLUTION NO. 90-20044 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE A SECOND AMENDMENT TO THE CONCESSION AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND SERVICE AMERICA CORPORATION. WHEREAS, the City of Miami Beach ("city") and Service America corporation ("Concessionaire") entered into an Agreement on December 17, 1986 (the "Agreement") for concession services at the Miami Beach Convention Center and TOPA: and WHEREAS, the city and Concessionaire have entered into a First Amendment to the Agreement on May 8, 1987: and WHEREAS, pursuant to Change Order No. 42 of the contract between the city and George Hyman Construction Company (the "contractor"), for construction of the Convention center, the city on March 2, 1989 authorized payment to the Contractor for kitchen changes in total amount of $394,462,00: and WHEREAS, Concessionaire has already made payment of $251,189.00 against Change Order No. 42, leaving a balance of $143,273.00: and WHEREAS, the city negotiated Change Order No. 80 dated July 13, 1988, with Contractor for a delay claim arising out of kitchen changes and underground utilities of $325,000.00: and WHEREAS, the city and concessionaire wish to settle their differences relating to Change Order No. 42 and Change Order No, 80: and WHEREAS, the city entered into a construction contract with Contractor on December 21, 1988 for the "West Wraparound" portion of the Convention center, and the parties wish to clarify Concessionaire's commitment to food service furnishings, fixtures and equipment for the West Wraparound: and WHEREAS, the Concessionaire has requested the city to authorize a food court or "branding concept" in a portion of the West Wraparound food service area, whereby the Concessionaire would serve name brand food products at several locations within the West Wraparound food service area, but also continue to offer a cafeteria style service serving various hot meals, sandwiches, salads and other items: and WHEREAS, the city and percentage rental rate of 18% Wraparound: and WHEREAS, the parties wish to provide that in the event of termination of the Agreement prior to the expiration of the term, that any successor concessionaire would be required to pay Concessionaire the undepreciated balance of concessionaire's $2.45 million investment in FF&E: and concessionaire have negotiated a for the food court area in the West 1 " WHEREAS, an appropriate Second Amendment to the Concession Agreement has been negotiated, the city Manager has recommended its execution and the city Attorney has approved it as to form. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and the city Clerk are hereby authorized to execute the Second Amendment to the Concession Agreement between the city of Miami Beach and Service America Corporation, PASSBD and ADOPTBD this ATTEST: ~~~~~Ji<~C:,~ PNB/lm FORM APPROVED LEGAL DEPT. BY~~/Z6... 7hZ./9~ , , Date 2 " " . '. . SECOND AMENDMENT TO AGREEMENT BBTWEEN CITY OP MIAMI BEACH AND SBRVICE AMERICA CORPORATION POR CONCBSSION SERVICBS AT THE MIAMI BEACH CONVENTION CBNTBR AND TOPA THIS Second Amendment to Agreement made and entered into this 8th day of October 1990 by and between the CITY OF MIAMI BEACH, a Florida municipal corporation (hereinafter called "city") , having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida 33139, and Service America Corporation, a Delaware Corporation, duly authorized to do business in Florida, with offices at 88 Gate House Road, Stamford, Connecticut 06904 (hereinafter called "Concessionaire"). . I T N B S S B T H WHEREAS, the city and Concessionaire entered into an Agreement on December 17, 1986 (the "Agreement") for concession services at the Miami Beach Convention Center and TOPA; and WHEREAS, the City and Concessionaire have entered into a First Amendment to the Agreement on May 8, 1987; and WHEREAS, pursuant to Change Order No. 42 of the contract between the City and George Hyman Construction Company (the "Contractor"), for construction of the Convention Center, the City on March 2, 1989 authorized payment to the Contractor for kitchen changes in total amount of $394,462,00; and 1 .' ,. WHEREAS, Concessionaire has $251,189.00 against Change Order No, $143,273,00; and WHEREAS, the City negotiated Change Order No, 80 dated July 13, 1988, with Contractor for a delay claim arising out of kitchen changes and underground utilities of $325,000.00; and WHEREAS, the city and Concessionaire wish to settle their differences relating to Change Order No, 42 and change Order No, 80; and WHEREAS, the City entered into a construction contract with Contractor on December 21, 1988 for the "West Wraparound" portion of the Convention center, and the parties wish to clarify Concessionaire's commitment to food service furnishings, fixtures and equipment for the West Wraparound; and WHEREAS, the Concessionaire has requested the city to authorize a food court or "branding concept" in a portion of the West Wraparound food service area, whereby the Concessionaire would serve name brand food products at several locations within the West Wraparound food service area, but also continue to offer a cafeteria style service serving various hot meals, sandwiches, salads and other items; and WHEREAS, the City and Concessionaire have negotiated a percentage rental rate of 18% for the food court area in the West Wraparound; and WHEREAS, the parties wish to provide that in the event of termination of the Agrement prior to the expiration of the term, already made payment of 42, leaving a balance of 2 " that any successor concessionaire would be required to pay Concessionaire the undepreciated balance of Concessionaire's $2,45 million investment in FF&E, NOW, THEREFORE, the City and the Concessionaire, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, agree as follows: 1. The above reci tations are true and correct and are incorporated herein by reference. 2. Concessionaire hereby authorizes payment in full in the amount of $394,462.00 paid by the City to George Hyman for the kitchen changes under Change Order No. 42. Since Concessionaire previously paid $251,189,00 against this account, the balance of $143,273,00 is authorized by Concessionaire to be deducted from the $2,3 million Convention Center FF&E account held by the city, and which as of June 21, 1990 has a balance of $675,514.14, 3. The City hereby waives any claim against Concessionaire arising out of or relating to the delay claim which the City paid the Contractor pursuant to Change Order no. 80 in the amount of $325,000.00 for work performed by the Contractor prior to July 13, 1988, 4. Section 6.A. of the Agreement is hereby amended to read as follows: A. As additional consideration for the granting of the exclusive rights granted to 3 Concessionaire under this Agrement, Concessionaire shall invest the sum of $2,300,00 (T;..'e Uilliel'l Three Iltlftarsa 'l'ftetlsafta Dellars) $2.450.000 (Two Million Four Hundred Fiftv Thousand Dollars) in FF&E for the expanded Convention Center. The Concessionaire agrees to allocate $150,000.00 of the $2,45 million to FF&E for the West WraDaround Dortion of the Convention Center, The equipment owned by Concessionaire and in use in the Convention Center at an approximate cost of $256,000, which is included in this Agreement as Exhibit C, shall not be included in computing the investment requirement herein. The additional $150,000 in FF&E shall be paid over to the city in cash within thirty (30) days of execution of this Second Alnendment, and shall be held by the City and administered in accordance with Section 6 of the Agreement. 5, section 25 of the Agreement is hereby amended to read as follows: 25. Termination, If the Concessionaire is in default pursuant to Section 24 hereof, the City may terminate this Agreement and revoke the privilege of the Concessionaire to come upon the City's property for purposes of which this Concession was granted and may oust and remove all parties who may be present upon or occupying any part of the premises for the purpose of exercising any rights so revoked, in accordance with the procedures set forth in Section 24. In the event of termination of this agreement by city or abandonment by concessionaire, Concessionaire shall thereby waive and forfeit all its investment in FF&E and all general construction payment, whether or not disbursed, In the event that this Agreement is terminated prior to the expiration of the initial term or Concessionaire abandons the premises, and Concessionaire thereby forfeits its FF&E, and general construction support payment, then City shall tlSS its eeet sfferts te re-bid the contract in SUbstantially the same manner as the bidding process for this Agreement, subject to then prevailing market conditions, and citv shall reauire in the reauest for bids that anv successor Concessionaire shall Dav to Concessionaire the undeDreciated balance of Concessionaire's $2,45 4 \ million investment in the FF&E. For the Durooses of this Aareement deDreciation of the FF&E shall mean straiaht line deDreciation based on a lO-vear life: Drovided further. however. that in the event that no bidder resDonds to the reauest for bids. there shall not be anv obliaation on the Dart of the citv to Dav or reauire anv other Dartv to Dav Concessionaire the undeDreciated balance of the FF&E. ci t.y shall pay 87C.:r t:e eSJ\sc.ssisnaire. any paymeJ\~ rc.ec.i~ed tram t.he. flew CSJ\66ssieftairc fer ~h6 HJ\ac.preeiat.ed FF&E ana/ey ~eJ\c.ral eeJ\s~ruet.ieJ\ a~pper~ paymeJ\~, lees any aHa all clfPc.J\ses iftel:lrrca 8lul/er lesses sliffe.rc.a ey Cit.y, iBelusiJ\g flit.l:lre pc.reeJ\~agc rCBt.al lesses, resl:11 tiftg tram t.lic de.fa'tll t. er abaruiefllllcJ\t. . 6, The City hereby authorizes Concessionaire to implement a food court branding concept in a portion of the Wraparound food service area, whereby the Concessionaire will serve brand name food products at several locations in the West Wraparound food service area, but also continue to offer a cafeteria style service serving various hot meals, sandwiches, salads and other offerings similar to those offered in the cafeteria on the east side of the Convention Center. 7. Section 20A of the Agreement is hereby amended to read as follows: A. Consideration, For the exclusive right to operate the food, beverage and catering concessions in the city of Miami Beach Convention Center complex and City of Miami Beach Theater of the Performing Arts, the concessionaire expressly agrees to pay to the City (in addition to the general construction support payment and the investment in furnishings, fixtures and equipment) the following monetary consideration, whichever sum mav be areater: 5 .. Minimum Annual Rental Three Hundred Thousand ($300,000.00) Dollars until the Convention Center Expansion is substantially complete per the Architect's plans (Both new east side and existing west side substantially completed and available for use by Convention Center lessees.) After the Convention Center expansion is complete Five Hundred Thousand ($500,000.00) Dollars, OR Percentaqe Rentals Twenty-five (25%) per cent of all gross receipts for concession sales, and miscellaneous sales; and Eiqhteen (18%) Der cent of all qross receiDts for the food court sales in the West WraDaround food service area; and Ten (10%) per cent of all gross receipts for catering sales; and Twenty-five (25%) per cent of all gross receipts for sales of alcoholic beverages; and Ten (10%) of all gross receipts for cafeteria sales; and Ten (10%) per cent of gross receipts for sales of tobacco products, 8, The parties agree to revise in a mutually agreeable format the forms set forth as Exhibit H to the Agreement to reflect the inclusion of the food court sales, 9, This Second Amendment shall supercede the Agreement and the First Amendment and in the event of any inconsistencies between the terms and conditions of the Agreement or the Fist Amendment, and this Second Amendment shall prevail. 45 'J IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed and their corporate seals to be affixed, attested by their witnesses and the City Clerk this ~ day of October , 1990, ATTEST: fORM APPROVED LEGAL DEPT. By c;;7~7?~ DIte 7 II B /90 , I 1i~~.1;Ju.,vk~K:J.....-.A t.~~ ~OCITY CLERK ' SERVICE AMERICA CORPORATION BY:~~ vice.. PRES Jt'NT ATTEST: ~~ /Jss', S~CRET Y PNB: 1m REF:SERVAME.AME 062590 7