R7I-Accept Recomm To Reject Proposals Catering-Concession Services For MBCCCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution accepting the recommendation of the City Manager to reject all proposals received pursuant to Request For
Proposals (RFP) No. 39-11/12 for Catering And Concession Services for the Miami Beach Convention Cent~r; approving a
one-year extension of the current Catering And Concessions Services Agreement between the City Of Miami Beach and
Service America Corporation D/B/A/ Centerplate for the Miami Beach Convention Center, with said extension commencing on
October 1, 2012, and terminating, for convenience and without cause, on September 30, 2013; and further referring to the
Finance and Citywide Projects Committee a discussion regarding the issuance of Request For Proposals (RFP) for Catering
and Concession Services for the Miami Beach Convention Center.
Ke Intended Outcome Su orted:
Improve convention center facility
Issue:
mmission Adopt the Resolution?
Item Summary/Recommendation:
The Current agreement commenced on March 1, 2007 and expires on September 30, 2012 and two (2) successive, five (5)
year renewal options at the City's discretion.
The Convention Center Advisory Board (CCAB), at its June 7, 2011 meeting, discussed whether or not the City should exercise
the five (5) year renewal option available in the current Agreement between the City and Service America Corporation
(Centerplate) for catering and concession services for the Miami Beach Convention Center, or, in the alternative, issue a new
Request for Proposals. The CCAB recommended the City issue a new RFP for catering and concession services at the
Convention Center.
The Finance and Citywide Projects Committee discussed this item at its October 27, 2011, meeting and expressed general
satisfaction with Centerplate. The renewal was discussed at the December 14, 2011 City Commission meeting, and the
Administration was directed to issue an RFP and referred the scope of service to the Finance & Citywide Projects Committee.
RFP No. 39-11/12 was issued on April 25, 2012, after incorporating the comments from the March Finance and Citywide
Projects Committee meeting. The deadline for receipt of proposals was June 8, 2012. Two (2) proposals were received from
Aramark Corporation and Ovations Food Service.
On May 22, 2012 and June 7, 2012, the City received letters from Centerplate, which among other things, requested that the
City discontinue the RFP process due, in part, to potential conflict of interest issues alleged as a result of Global Spectrum's
management of the MBCC and Ovations Food Service, one of the proposers to the RFP being owned by the same parent
company, Comcast Corporation. Centerplate also stated that they had chosen not to respond to the RFP due to this alleged
conflict.
Based on a subsequent analysis conducted by the City Attorney's Office and Administration concerning a potential challenge to
the particular RFP process including the potential filing of an ethics complaint against the City with the Miami-Dade County
Ethics Commission, it is the recommendation of the Administration to reject all proposals received pursuant to the RFP and
extend the existing agreement for an additional one year. The extension also provides sufficient time to re-draft and issue a
new RFP, solicit proposals, and award a new agreement. The Administration further recommends the Mayor and City
Commission refer to the Finance and Citywide Projects Committee and discussion regarding the issuance of a new Request for
Proposals (RFP) for Catering and Concession Services for the Miami Beach Convention Center.
ADOPT THE RESOLUTION.
Advisory Board Recommendation:
l N/A
Financial Information:
Source of Funds;
Finance Dept
Financial Impact Summary:
Department Director
Amount
MIAMI BEACH 581
Account Approved
AGENDA ITEM -.1..->---"---=:........--
DA TE __.'--I,Jo::;;......__'--
& MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie Brooks, Interim City Manager
DATE; September 12, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER TO REJECT ALL PROPOSALS RECEIVED PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 39-11/12 FOR CATERING AND
CONCESSION SERVICES FOR THE MIAMI BEACH CONVENTION CENTER;
APPROVING A ONE-YEAR EXTENSION OF THE CURRENT CATERING AND
CONCESSIONS SERVICES AGREEMENT BETWEEN THE CITY AND SERVICE
AMERICA CORPORATION D/B/A/ CENTERPLATE FOR THE MIAMI BEACH
CONVENTION CENTER, WITH SAID EXTENSION COMMENCING ON
OCTOBER 1, 2012, AND TERMINATING, FOR CONVENIENCE AND WITHOUT
CAUSE, ON SEPTEMBER 30, 2013; AND FURTHER REFERRING TO THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE A DISCUSSION
REGARDING THE ISSUANCE OF REQUEST FOR PROPOSALS (RFP) FOR
CATERING AND CONCESSION SERVICES FOR THE MIAMI BEACH
CONVENTION CENTER.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME
Improve the convention center facility.
BACKGROUND
On April 11, 2006, the Mayor and City Commission approved the issuance of Request for
Proposals (RFP) No. 22-05/06, to Provide Professional Food and Beverage Facilities
Management Services for the Miami Beach Convention Center; with an option to manage food
and beverage services at other city cultural facilities. This RFP was issued in advance of
Centerplate's expiring contract on February 28, 2007. Centerplate, doing business originally as
Volume Services America, Inc., held the exclusive food and beverage services contract at the
Miami Beach Convention Center since December 17, 1986. The original contract had an initial
term of fifteen years, and the City Commission exercised a five (5) year renewal term on May
16, 2001, via Resolution No. 2001-24393.
Following a review of all proposals received, the RFP Evaluation Committee and the City
Administration recommended Centerplate as the top-ranked proposer. Subsequently, the City
Commission adopted Resolution No. 2006-26316, authorizing the Mayor and Clerk to execute a
agreement with Centerplate, upon completion of successful negotiations by the Adminsitration.
582
Convention Center Food & Beverage Agreement
City Commission Agenda
September 12, 2012
Page 2 of3
The current Agreement commenced on March 1, 2007, and expires on September 30, 2012.
The Agreement also includes two (2) successive, five (5) year renewal options, at the City's
discretion.
CONVENTION CENTER ADVISORY BOARD
As previously stated, the initial term of Centerplate's Agreement with the City expires on
September 30, 2012. In anticipation of same, the Convention Center Advisory Board (CCAB), at
its June 7, 2011 meeting, discussed whether or not the City should exercise the first five (5)
year renewal option available under the current Agreement, or issue a new Request for
Proposals (RFP). The CCAB recommended, that the City issue a new RFP for catering and
concession services at the Convention Center.
FINANCE AND CITYWIDE PROJECTS COMMITTEE-OCTOBER 2011
The Finance and Citywide Projects Committee (FCWPC) first discussed this item at its October
27, 2011, meeting. The Committee expressed general satisfaction with Centerplate.
Staff recommended that, should a renewal be proposed, it be broken down into a smaller term,
with year-by-year renewals. In that manner, any performance issues could be addressed. The
Committee recommended that the City exercise the option to renew for two (2) years with three
one ( 1) year renewals.
CITY COMMISSION ACTION -DECEMBER 2011
As per the FCWPC recommendation on October 27, 2011 meeting, The Administration
presented a resolution at the December 14, 2011, City Commission meeting seeking
authorization to enter into negotiations with Centerplate for renewal of the current agreement.
After discussing the item, the City Commission directed the Administration to issue a new RFP,
and referred the scope of services to the Finance & Citywide Projects Committee to review the
criteria prior to RFP issuance.
FINANCE AND CITYWIDE PROJECTS COMMITTEE-MARCH 2012
The Committee recommended:
• Changing score weighting on Experience and Qualifications and Past Performance
based on Client Surveys from 25% to 35%;
• reducing the weight of Business and Creative Marketing Plan from 25% to 15%;
• including a food quality criterion;
• including asking proposers to include a detailed plan of how they will raise survey scores
to 93% or above; and
• that the criteria for "comparable facility" be more defined, to include the size of the facility
that is to be compared, the minimum amount of revenue, and minimum volume of
surveys.
REQUEST FOR PROPOSALS
Request for Proposals (RFP) No. 39-11/12 was issued on April 25, 2012. A pre-proposal
meeting to provide information to the proposers submitting a response and a site tour was held
on May 7, 2012. Eight (8) companies participated in the meeting and site tour. The deadline for
receipt of proposals was June 8, 2012 at 3:00 pm. BidNet issued bid notices to 33 prospective
proposers, and 6 additional proposers were notified via e-mail, which resulted in the receipt of
two (2) proposals in response to the RFP from Aramark Corporation, and Ovations Food
Service.
583
Convention Center Food & Beverage Agreement
City Commission Agenda
September 12, 2012
Page 3 of3
CENTERPLATE LETTERS
On May 22, 2012, the City received a letter from Centerplate which, among other things, alleged
a conflict of interest by Global Spectrum, and requested the City discontinue the RFP process
and extend Centerplate's current contract for one (1) year. The City received a second letter
from Centerplate on June 7, 2012, again alleging a conflict of interest as a result of Global
Spectrum's participation in certain aspects relating to possible input that they may have
provided the City in the initial stages of the RFP process, as well as Global Spectrum's
relationship with Ovations Food Service, one of the proposers (the relationship being that Global
and Ovations were owned by the same parent company, Comcast Corporation). Centerplate
also stated that they had chosen not to respond to the RFP.
The City Attorney's Office and Administration reviewed the issues raised in Centerplate's letter,
both in terms of potential challenges to the RFP, as well as the likelihood of the filing of a
complaint by Centerplate against the City with the Miami-Dade County Commission on Ethics.
In light of the letter issues, even if ultimately successfully defended by the City, trusting the
integrity of this particular RFP process and, further, given the fact that the issues had been
raised at the outset of the process and prior to evaluation of proposals, the Administration
recommends the City Commission exercise its right under the RFP to reject all proposals,
finding such rejection to be in the best interest of the City.
Concurrent with the rejection, the Administration also recommends that the current Agreement
be extended for one-year, commencing on October 1, 2012, and terminating on September 30,
2013. The one (1) year extension is being recommended because the first six (6) months
(October -March) of the fiscal year are when peak usage of the Convention Center occurs and
changing the food and beverage operator during this period of time could be detrimental to the
success of scheduled events and the operations of the facility. Additionally, a month to month
extension could impact employee morale and retention, which is critical to providing quality
customer service. Finally, the extension also provides sufficient time to re-draft and issue a new
RFP and complete the new solicitation process.
The Administration further recommends the Mayor and City Commission refer to the Finance
and Citywide Projects Committee a discussion regarding the issuance of a new Request for
Proposals (RFP) for Catering and Concession Services for the Miami Beach Convention Center.
CONCLUSION
The Adminsitration recommends the Mayor and City Commission adopt the Resolution
accepting the recommendation of the City Manager to reject all proposals received pursuant to
Request For Proposals (RFP) 39 -11/12 for Catering And Concession Services for the Miami
Beach Convention Center; and further approve a one-year extension of the current Catering
And Concessions Services Agreement between the City and Service America Corporation
d/b/a/ Centerplate for the Miami Beach Convention Center, with said extension commencing on
October 1, 2012, and terminating, for convenience and without cause, on September 30, 2013.
Furthermore, the Administration recommends the Mayor and City Commission refer to the
Finance and Citywide Projects Committee and discussion regarding the issuance of a new
Request for Proposals (RFP) for Catering and Concession Services for the Miami Beach
Convention Center.
T:\AGENDA\2012\9-12-12\MBCC Food & Beverage Amendment 2 Memo.doc
584
RESOLUTION NO.-----
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER TO REJECT
ALL PROPOSALS RECEIVED PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 39-11/12 FOR CATERING AND
CONCESSION SERVICES FOR THE MIAMI BEACH
CONVENTION CENTER; APPROVING A ONE-YEAR
EXTENSION OF THE CURRENT CATERING AND
CONCESSIONS SERVICES AGREEMENT BETWEEN THE
CITY AND SERVICE AMERICA CORPORATION D/B/A/
CENTERPLATE FOR THE MIAMI BEACH CONVENTION
CENTER, WITH SAID EXTENSION COMMENCING ON
OCTOBER 1, 2012, AND TERMINATING, FOR CONVENIENCE
AND WITHOUT CAUSE, ON SEPTEMBER 30, 2013; AND
FURTHER REFERRING TO THE FINANCE AND CITYWIDE
PROJECTS COMMITTEE DISCUSSION REGARDING THE
ISSUANCE OF A NEW REQUEST FOR PROPOSALS (RFP)
FOR CATERING AND CONCESSION SERVICES FOR THE
MIAMI BEACH CONVENTION CENTER.
WHEREAS, on September 6, 2006, the City Commission adopted Resolution No. 2006-
26316, authorizing the Mayor and Clerk to execute an agreement with Service America
Corporation D.B.A. Centerplate, for catering and concession services for the Miami Beach
Convention Center (the Agreement); and
WHEREAS, the initial term of the Agreement expires on September 30, 2012, and
includes two (2) successive, five (5) year renewal options at the City's discretion; and
WHEREAS, at the December 14, 2011 City Commission meeting, the Administration
was directed to issue a Request for Proposals (RFP) for the aforestated services, and referred
discussion of the RFP scope of services to the Finance & Citywide Projects Committee (to
review the criteria prior to RFP issuance); and
WHEREAS, RFP No. 39-11/12 was issued on April 25, 2012, after incorporating the
comments from the Finance and Citywide Projects Committee meeting; the deadline for receipt
of proposals was June 8, 2012 at 3:00 pm; and
WHEREAS, BidNet issued bid notices to 33 prospective proposers, and an additional six
(6) proposers were notified via e-mail; this resulted in the receipt of two (2) proposals from
Aramark Corporation, and Ovations Food Service; and
WHEREAS, on May 22, 2012 and June 7, 2012, the City received letters from
Centerplate which, among other things, requested that the City discontinue the RFP process
due, in part, to potential conflict of interest issues alleged as a result of Global Spectrum's
management of the MBCC, and Ovations Food Service (one of the proposers to the RFP) being
owned by the same parent company, Comcast Corporation; and
WHEREAS, the City Attorney's Office and Administration reviewed the issues raised in
Centerplate's letter; both in terms of potential challenges to the RFP, as well as the likelihood of
the filing of a complaint by Centerplate against the City with the Miami-Dade County
Commission on Ethics; and
585
WHEREAS, the City Attorney's Office and the Administration have concluded that, even
if the City is ultimately successful in defending the City, trusting the integrity of this particular
RFP process and, further, given the fact that the issues raised by Centerplate, it would be
prudent, given that the RFP process is in the initial stages and evaluation of proposals has not
commenced, for the City Commission to exercise its right under the RFP and reject all
proposals, finding such rejection to be in the best interest of the City; and
WHEREAS, concurrent with the rejection, the Administration also recommends that the
current Agreement be extended for one-year, commencing on October 1, 2012, and terminating
on September 30, 2013; and
WHEREAS, the one (1) year extension is being recommended because the first six (6)
months (October -March) of the fiscal year are when peak usage of the Convention Center
occurs, and changing the food and beverage operator during this period of time could be
detrimental to the success of scheduled events and the operations of the facility; and
WHEREAS, the extension also provides sufficient time to re-draft and issue a new RFP
and complete the new solicitation process; and
WHEREAS, the Administration further recommends the Mayor and City Commission
refer to the Finance and Citywide Projects Committee a discussion regarding the issuance of a
new Request for Proposals for Catering and Concession Services for the Miami Beach
Convention Center.
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 recommendation of the City Manager to reject all proposals
received pursuant to Request For Proposals (RFP) No. 39-11/12 for Catering and Concession
Services for the Miami Beach Convention Center; approve a one-year extension of the current
Catering and Concessions Services Agreement between the City and Service America
Corporation D/B/A/ Centerplate for the Miami Beach Convention Center, with said extension
commencing on October 1, 2012, and terminating, for convenience and without cause, on
September 30, 2013; and further referring to the Finance and Citywide Projects Committee a
discussion regarding the issuance of a new Request For Proposals (RFP) for Catering and
Concession Services for the Miami Beach Convention Center.
PASSED AND ADOPTED THIS __ DAY OF----' 2012
ATTEST:
CITY CLERK
T:\AGENDA\2012\9-12-12\MBCC Food & Beverage Amendmenl 2 Reso~doc
MAYOR
586
APPROVED AS TO
FORM & LANGUAGE
__.._ .... FOR EXECUTION