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Home My WebLink About2006-26286 Reso Inc RESOLUTION NO. 2006-26286 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO.1 TO THE AGREEMENT. WITH VOLUME SERVICE AMERICAN, d/b/a CENTERPLATE, FOR CONCESSION SERVICES AT THE CITY OF MIAMI BEACH CONVENTION CENTER AND JACKIE GLEASON THEATER, DATED DECEMBER 17,1986; SAID AMENDMENT ALLOWING FOR THE ABILITY TO SERVICE CATERING FUNCTIONS FOR PERSONS, FIRMS, AND/OR CORPORATIONS WHICH ARE NOT LESSEES OF EXHIBIT HALLS AT THE MIAMI BEACH CONVENTION CENTER. WHEREAS, the City entered into an Agreement with Volume Services America (now Centerplate) on December 17, 1986, to provide exclusive food and beverage services at the Miami Beach Convention Center (MBCC) and Jackie Gleason Theater (TOPA) for a period of fifteen (15) years (the Agreement); and WHEREAS, the City renewed the Agreement on May 16, 2001, for an additional five (5) year period, extending through February 28, 2007; and WHEREAS, the Agreement prohibits Centerplate from providing food and beverage services to users of the MBCC not leasing an exhibit hall; and WHEREAS, changes in the Miami Beach hospitality industry dictate that this prohibition is no longer in the best interest of the City; and WHEREAS, the City desires to maximize usage and reduce operating deficits at the MBCC; and WHEREAS, the elimination of such prohibition would allow the City the ability to move toward said goals. 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 approve and authorize the Mayor and City Clerk to execute Amendment No.1 to the Agreement with Volume Services America, d/b/a Centerplate, for Concession Services at the City of Miami Beach Convention Center and Jackie Gleason Theater, dated December 17, 1986; said Amendment allowing for the ability to service catering functions for persons, firms, and/or corporations w ch a not lessees of exhibit halls at the Miami Beach Convention Center. PASSED AND ADOPTED this 6th day' of ber, 2006. ~r P~dw, CITY CLERK Robert Parcher MAYOR FORM & LANGUAGE David Dermer & FO EXECUTION .~ Date COMMISSION ITEM SUMMARY Condensed Title: AMENDMENT TO CENTERPLATE AGREEMENT TO ALLOW THE MIAMI BEACH CONVENTION CENTER TO BOOK LOCAL CATERING EVENTS. Ke Intended Outcome Su orted: Improve availability and accessibility of major events. Issue: This item allows for the amending of the Agreement with Centerplate, food and beverage provider for the Miami Beach Convention Center, to allow food and beverage provision to users of the Center not leasinq an exhibit hall. Item Summary/Recommendation: The Agreement with Centerplate, initially approved December 17,1986 and renewed on May 16, 2001, prohibits it from providing food and beverage services to users of the Miami Beach Convention Center which do not lease an exhibit hall. The clause was inserted at the recommendation of the Miami Beach hotel industry. However, due to changes in the industry, there is no longer a strong sentiment in favor of continuing this prohibition. Additionally, the desire to increase revenues and decrease operating deficits for the Center would encourage the decision to rescind the prohibition. The Commission has expressed its sentiment to not include the prohibition in a future food and beverage Agreement, scheduled to begin in March 2007, and thus the Administration is asking the Commission to amend the current Agreement with Centerplate to allow the ability to service this type of business before March 2007. Adviso Board Recommendation: This item was recommended by the Convention Center Advisory Board at its regular meeting of March 28, 2006. Financial Information: Source of Amount Account Approved Funds: 1 D 2 3 4 OBPI Total Financial Impact Summary City Clerk's Office Legislative Tracking: I ~ in ...... MIAMIBEACH AGENDA ITEM DATE ~7F ?~ -t:J" & MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager(~ ~ September 6, 2006 ./ TO: DATE: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH APPROVING OF AN AMENDMENT TO THE AGREEMENT WITH CENTERPLATE TO ALLOW FOR THE ABILITY TO SERVICE CATERING FUNCTIONS NOT UTILIZING EXHIBIT HALLS AT THE MIAMI BEACH CONVENTION CENTER. ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission approve the proposed resolution. BACKGROUND On December 17, 1986, the City entered into an Agreement with Volume Services America for the exclusive provision of food and beverage services at the Miami Beach Convention Center (MBCC) and Jackie Gleason Theater (JGT) through an initial term of fifteen years, expiring on February 28, 2002. That Agreement was extended with Centerplate, successor through name change to Volume Services America, on May 16, 2001 for an additional five year term, through February 28, 2007. Section 2.F. of the Agreement, entitled CaterinQ Functions, states in part: Concessionaire covenants and agrees that it will not, directly or indirectly, provide, supply or serve food or beverage at the Convention Center or in any room or facility therein to, or at the insistence of any person, firm or corporation which is not a lessee of hall space at the Convention Center, unless such lessee is the City. It is the intent of this provision that food or beverage shall not be provided at the Convention Center except in connection with a bona fide convention, trade show, public show, entertainment event, consumer show or similar event normally associated with convention centers, unless the lessee is the City. This provision was included at the recommendation of the local hotel industry so that the Center, whose construction and operations are funded by the Convention Development Tax generated by local hotels, would not compete with those same local hotels for local and social banquet and catering business. However, with the recent changes in the hotel inventory in the City of Miami Beach, as well as the current dearth of larger banquet spaces in the City brought about by renovation projects, especially at the Fountainebleau Resort & Towers, the hotel industry opposition to the ability of the Center to host these local and social banquet events has diminished considerably. In its recent issuance of a Request for Proposals for exclusive food and beverage services at the MBCC and JGT for the time following the current term of Centerplate, the Commission eliminated the above restriction for any future Agreement. Additionally, with the increasing operational deficit of the Center due to escalating costs and the hesitancy to raise rates accordingly due to competitive factors in the industry, it is important to identify additional revenue sources for the City at the Center. The lifting of this restriction will allow us to make a significant impact on revenue stream opportunities without affecting current users. An additional benefit to this action is the ability of Centerplate to develop a more consistent workforce and therefore further improve service delivery by having a steadier stream of business to service, rather than having to endure large gaps of time between conventions and meetings requiring high level catering services. The word of mouth of this impending change has already brought significant interest from potential lessees. We have commitments already for the Miami Art Museum Gala, Jackson Memorial Hospital Foundation, a private bar mitzvah, and are also in active discussions for a wedding and at least three other gala dinners, all to occur within the next ten months. Many of these events would not have been able to occur with the restriction on meeting room catering still in place. SMG will include marketing initiatives in future marketing plans for this opportunity. This item was discussed in the context of issuance of the food and beverage RFP for the Center at the Finance & Citywide Projects Committee, and the Committee recommended rescinding the prohibition from the future Agreement, but did not take formal action as regards the current Agreement. Furthermore, at its regular meeting of March 28, 2006, the Convention Center Advisory Board recommended removal of the clause prohibiting catering of functions not using an exhibit hall. CONCLUSION The Administration recommends that the City Commission approve the proposed resolution and amendment. T:\AGENDA\2006\sep0606\consent\Comm Item Centerplate Amendment 090606 Memo.doc