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HomeMy WebLinkAbout2006-26316 Reso RESOLUTION NO. 2006-26316 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF FIRMS PURSUANT TO 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, IF DEEMED TO BE IN THE CITY'S BEST INTEREST; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED FIRM SERVICE AMERICA CORPORATION D/B/A CENTERPLATE, AND IF UNSUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH SERVICE AMERICA CORPORATION D/B/A CENTERPLA TE, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE SECOND-RANKED FIRM ARAMARK; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, the City's current agreement for the food and beverage concessionaire at the Miami Beach Convention Center (MBCC) provides for one additional renewal option of five years; however the Administration felt it was in the City's best interest to issue a new Request for Proposals (RFP) to ensure the MBCC provides quality food and beverage concession services to its users and attendees and (potentially) other cultural venues; and WHEREAS, on April 11, 2006, the Mayor and City Commission approved the issuance of 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 as deemed necessary by the City, to include: 1) the Jackie Gleason Theater of the Performing Arts; 2) the Colony Theater; and 3) the Byron Carlyle Theater; and WHEREAS, RFP No. 22-5/06 was issued on April 11, 2006, with an opening date of May 26, 2006; and WHEREAS, Bid Net issued bid notices to 25 prospective proposers, and the Procurement Division notified an additional nine (9) proposers which are members of the International Association of Assembly Managers (IAAM), which resulted in the receipt of following five (5) proposals: 1. Aramark; 2, Boston Culinary; 3. Centerplate; 4. Levy Restaurants; 5. Ovations; and WHEREAS, the City Manager, via Letter to Commission (LTC) No. 161- 2006, appointed an Evaluation Committee ("the Committee") consisting of the following individuals: Kathie Brooks Stuart Blumberg Hilda Fernandez, Joe Fontana Steven Hass Cathy Johnston Jeff Lehman Alan Randolph Lyan Tassler Director, Office of Budget and Performance Improvement; President, Greater Miami and the Beaches Hotel Association; Assistant City Manager, Committee Chair; Former Chairperson, Convention Center Advisory Board; Chairperson, Miami Beach Visitor & Convention Authority; Miami Boat Show; Board Member, Convention Center Advisory Board; Chairperson, Miami Beach Chamber of Commerce; Convention Services Director, Greater Miami Convention and Visitors Bureau; and WHEREAS, Committee member Mr. Alan Randolph was unable to attend; Randy Heinler, chairperson of the Miami Beach Convention Center Advisory Board, was appointed to replace Mr. Randolph; and WHEREAS, on August 23,2006, the Committee convened; and WHEREAS, the Committee agenda consisted of the following: 1) Introductions; 2) Project Overview; 3) Evaluation Criteria; 4) Government in the Sunshine Law; 5) Cone of Silence; and WHEREAS, a motion was made by Cathy Johnston, seconded by Steven Haas, and unanimously agreed by the Committee, that Service America Corporation d/b/a Centerplate, was the top-ranked firm, and Aramark was the second-ranked firm; and WHEREAS, the Committee, as part of its recommendation of Centerplate as the top-ranked firm, further recommended that Barton G. be contractually "locked-in"; and should the partnership between Barton G. and Centerplate end prior to the term of Centerplate's contract with the City, the City should reserve all approval rights as to Barton G.'s replacement; and WHEREAS, the City Manager was briefed on the Committee's recommendation and, after exercising his own due diligence, concurs with the Committee's recommendation, 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 pertaining to the ranking of firms pursuant to 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, if Deemed to Be in the City's Best Interest; authorizing the Administration to enter into negotiations with the top- ranked firm, Service America Corporation d/b/a Centerplate and, if unsuccessful in negotiating an agreement with Service America Corporation d/b/a Centerplate, authorizing the Administration to enter into negotiations with the second-ranked firm, Aramark; and further authorizing the Mayor and City Clerk to execute an Agreement upon completion of successful negotiations by the Administration. 1':1 PASSED AND ADOPTED THIS 6th ~ David Dermer ATTEST: IUkur P Cut L CITY CLERK Robert Parcher MA R" T:\AGENDA\2006\sep0606\Regular\Food & Be erag ESO.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION COMMISSION ITEM SUMMARY Condensed Title: A Resolution Accepting The Recommendation Of The City Manager Pursuant To Request For Proposals (RFP) No. 22-05/06, Food And Beverage Services For The Miami Beach Conyention Center and Other City Cultural Facilities, Authorizing The Administration To Enter Into Negotiations With The Top-Ranked Firm Service America Corporation D/B/A Centerplate, And If Unsuccessful, Authorizing The Administration To Enter Into Negotiations With The Second- Ranked Firm Aramark; And Further Authorizing The Mayor And City Clerk To Execute An A reement U on Com letion Of Successful Ne otiations B The Administration. Ke Intended Outcome Su orted: Improve Availability and Accessibility of Major Events Issue: Shall the City Commission Adopt the Resolution? Item Summary/Recommendation: 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 Conyention Center; with an option to manage food and beverage services at other city cultural facilities to include: 1) the Jackie Gleason Theater of the Performing Arts; 2) the Colony Theater; and 3) the Byron Carlyle Theater. An Evaluation Committee appointed by the City Manager, conyened and spent an entire day listening to presentations that included food and beverage tasting and question and answer sessions with each Proposer. The Committee unanimously agreed that Centerplate is the top-ranked firm and Aramark is the second-ranked firm. The Committee, as part of their recommendation of Centerplate as the top-ranked firm, further recommended that Barton G. be contractually "locked-in"; and should the partnership between Barton G. and Centerplate end prior to the term of Centerplate's contract with the City, that the City should reserve all approval rights as to Barton G.'s replacement. The City Manager was briefed on the Committee's recommendation and after exercising his due diligence, concurs with the Committee's recommendation. ADOPT THE RESOLUTION. Advisory Board Recommendation: I Financial Information: Source of Amount Account Approved Funds: 1 D 2 3 4 Finance Dept Total Financial Impact Summary: /I City Clerk's Office Legislativ","racking: Gus Lopez, extension 6641. ji^- Sian-Offs: CI HF 606\Regular\Food&BeverageSu City Manager Department Director JMG m ...." MIAMI BEACH AGENDA ITEM DATE R7t= q-~-o'" ~ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: SUBJECT: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager J..r-~ September 6, 2006 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF FIRMS PURSUANT TO 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, IF DEEMED TO BE IN THE CITY'S BEST INTEREST; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED FIRM SERVICE AMERICA CORPORATION D/B/A CENTERPLATE, AND IF UNSUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH SERVICE AMERICA CORPORATION D/B/A CENTERPLATE, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE SECOND-RANKED FIRM ARAMARK; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS On December 17, 1986, the City of Miami Beach entered into an Agreement with Volume Services America for the preparation and delivery of food and beverage services for the Miami Beach Convention Center and the Jackie Gleason Theater. This initial term was in affect for fifteen (15) years through February 2002. On May 16, 2001, the City Commission passed Resolution No. 2001-24393, which exercised a renewal option to the Agreement with Volume Services America for an additional five year term, which expires on February 28,2007. It should also be noted that in October 2004, Volume Services America changed the name of the company from Volume Services America Holdings, Inc. to Centerplate, Inc., who currently manages food/beverage services at the Miami Beach Convention Center and Jackie Gleason Theater. Commission Memo Re Food & Beverage Selection September 6, 2006 Page 20f7 In February 2005, the City issued Centerplate a notice of default due to continued service deficiencies at the Miami Beach Convention Center (MBCC) during a number of events in 2004 and 2005, but most significantly due to deficiencies experienced during the SAP Conference in January 2005. In accordance with the Agreement, Centerplate was provided with thirty (30) days to remedy the aforestated default. Subsequently, Centerplate made sufficient changes in staffing, which included 99% change in staff, and operations which resulted in significant quality improvements to cure the default. Since these changes have been made, the client surveys have substantiated that satisfactory changes were made. That said, the City recognizes that isolated incidents are likely to occur in large catering/concession operations. Although the current agreement does provide for one additional renewal option of five years, in light of the length of the current contract term (total 20 years), the Administration felt it was in the City's best interest to issue a Request for Proposals (RFP) to ensure the Miami Beach Convention Center continues to provide quality food and beverage concession services to the users and attendees of the Convention Center and potentially other cultural venues. This recommendation was presented to the Convention Center Advisory Board (CCAB) as an informational item at their February 28, 2006 meeting. No objections were raised. This matter was also discussed at the March 28, 2006, CCAB meeting. The aforementioned matter was also considered by the Finance and Citywide Projects Committee on March 23, 2006. At that time there was also a discussion on the prohibition, which has been in place for 20 years, that restricts the City's food and beverage concessionaire from hosting local catering events such as banquets, weddings, and large non-profit organization events at the Miami Beach Convention Center, when those events do not book an exhibit hall and are not conventions, trade shows, public shows, entertainment events, or consumer shows. The Finance and Citywide Projects Committee felt this was business the Convention Center should be allowed to compete for, especially since other local facilities like the Miami Performing Arts Center and Parrot Jungle are able to do so. Moreover, the City's largest hotel, the Fontainebleau, has closed for renovations and limits the availability of space in the City equipped to handle large catered functions. It is also important to note that the Miami Beach Convention Center is the only convention center in the Country with this prohibition, The Committee agreed the prohibition should be eliminated in current and future food and beverage agreements, The removal of the prohibition was also discussed during the Commission's Convention Center Workshop, with an agreement that the prohibition should be removed. The RFP issued contemplated the ability for social catering. In addition, a resolution on the September 6, 2006 Commission agenda proposes an amendment to the current concession agreement to allow this business during the balance of the current contract term, 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 to include: 1) the Jackie Gleason Theater of the Performing Arts; 2) the Colony Theater; and 3) the Byron Carlyle Theater. The RFP allows for the successful proposer to host local catering events such as banquets, weddings, and large non-profit organization events at the Miami Beach Convention Center. RFP No. 22-05/06 was issued on April 11, 2006 with an opening date of May 26, 2006. On April 26, 2006, a pre-Proposal submission meeting was held at the following address: Commission Memo Re Food & Beverage Selection September 6, 2006 Page 3 0'7 Miami Beach Convention Center 1901 Convention Center Drive -- Fourth Floor Executive Conference Room Miami Beach, FL 33139 As part of the pre-Proposal meeting, a tour of the facility including but not limited to the kitchen areas was provided to all in attendance. Attendance (in person or via telephone) was encouraged and recommended as a source of information but was not mandatory. Bid Net issued bid notices to 25 prospective Proposers. Additionally, nine (9) Proposers who are members of the International Association of Assembly Managers (IAAM) were notified e-mail, which resulted in the receipt of following five (5) proposals: 1, Aramark; 2, Boston Culinary; 3. Centerplate; 4. Levy Restaurants; and 5. Ovations. All five (5) Proposers were notified that the Evaluation Committee meeting was scheduled as follows: Date: VVednesday, August 23, 2006 Place: Miami Beach Convention Center Room B-117 1901 Convention Center Drive Miami Beach, FL 33139 Each Proposer was asked to provide the Evaluation Committee with a 15-minute presentation, followed by a 20-minute question and answer session. Time: Aramark 10:00 a.m. -- 10:55 a.m. Boston Culinary Group 11 :00 a.m, -- 11 :55 a.m. Centerplate 12 noon -- 12:55 p.m. Levy Restaurants 1 :00 p.m, -- 1 :55 p.m. 2:00 p.m. -- 2:55 p.m. Ovations Additionally, each Proposer was asked to prepare and provide a food display of their foods for tasting and sampling. Each Proposer was assigned their own room (all rooms were identical in dimension and base finish), with access to said room two days prior to their scheduled presentations. The rooms were assigned as follows: Commission Memo Re Food & Beverage Selection September 6, 2006 Page 4 of7 Aramark Boston Centerplate Levy Ovations Room B-112; Room B-113; Room B-114; Room B-115; and Room B-116. The City Manager via Letter to Commission (LTC) No, 161-2006, appointed an Evaluation Committee ("the. Committee") consisting of the following individuals: Kathie Brooks Stuart Blumberg Hilda Fernandez Joe Fontana Steven Hass Cathy Johnston Jeff Lehman Alan Randolph Lyan Tassler Director, Office of Budget and Performance Improvement. President, Greater Miami and the Beaches Hotel Association Assistant City Manager, Committee Chair Former Chairperson, Convention Center Advisory Board Chairperson, Miami Beach Visitor & Convention Authority Miami Boat Show Board Member, Convention Center Advisory Board Chairperson, Miami Beach Chamber of Commerce Convention Services Director, Greater Miami Convention and Visitors Bureau Mr. Alan Randolph was unable to serve as a Committee member as a result of his transition to a new job. Mr. Randolph was replaced by Mr, Randy Heimler, Chairperson, Miami Beach Convention Center Advisory Board. On August 23, 2006, the Committee convened and all Committee members were in attendance. The Committee agenda consisted of the following: 1) Introductions; 2) Project Overview; 3) Evaluation Criteria; 4) Government in the Sunshine Law; 5) Cone of Silence The following Evaluation Criteria was used to evaluate and rank the Proposers: A) Financial: (percentage = 35%) . Financial capability to perform the services outlined in the RFP; · Proposed commissions or services within maximum cost guidelines parallel to the goals and requirements of the City; . Commission proposal and other additional financial considerations; and · Provision of (availability of) daily financial data for each venue in a recognized GAAP format. B) Experience and qualifications and Past Performance Based on Client Surveys: (percentage = 30%) · Experience and qualifications of the Proposer in high-quality convention center, arena and/or restaurant food/beverage operations pertaining to catering /banqueting, concessions, special services, suite/club catering, bar services, restaurants, including VIP and other similar services; Management team's experience and qualifications; and · Volume and quality of surveys submitted by clients. Commission Memo Re Food & Beverage Selection September 6, 2006 Page 5 0'7 C) Operational expertise and procedures: (percentage = 20%) . Staff training/manual procedures; · Approach to customer service and maintenance of quality standards; . Ability to provide back-up management expertise on short notice; . Cash control computer system and interfaces to be provided; . Risk Assessment Plan(s); and . Service Plan(s). D) Business and Creative Marketing Plan (percentage = 15%) . Business and Marketing plans as presented for both food and beverage and catering concession services. After listening to presentations that included food and beverage tastings and question and answer sessions with each Proposer, the Committee deliberated, scored and ranked the Proposers as follows: COMMITTEE BOSTON MEMBER ARAMARK CULINARY CENTERPLATE LEVY OVATIONS Note: Number in parentheses ( ) below denotes ranking: Steven Haas 87 (3) 60 (5) 90 (1) 75 (4) 89 (2) Jeff Lehman 84 (2) 50 (4) 85 (1) 50 (4) 83 (3) Stuart Blumberg 85 (2) 65 (4) 90 (1) 55 (5) 75 (3) Randy Heimler 75 (2) 70 (3) 80 (1) 70 (3) 70 (3) Lyan Tassler 91 (1) 65 (4) 80 (3) 40 (5) 83 (2) Cathy Johnston 91 (1) 59 (5) 82 (3) 85 (2) 75 (4) Joe Fontanna 90 (1) 55 (5) 70 (2) 60 (4) 65 (3) Hilda Fernandez 82 (2) 80 (3) 84 (1) 76 (4) 80 (3) Kathy Brooks 82 (3) 75 (4) 88 (1) 74 (5) 85 (2) TOTAL 1ST PLACE 3 0 6 0 0 VOTES A motion was made by Cathy Johnston, seconded by Steven Haas and unanimously agreed by the Committee that Centerplate is the top-ranked firm and Aramark is the second-ranked firm. The Committee, as part of their recommendation of Centerplate as the top-ranked firm, further recommended that Barton G, be contractually "locked-in"; and should the partnership between Commission Memo Re Food & Beverage Selection September 6, 2006 Page 60f7 Barton G. and Centerplate end prior to the term of Centerplate's contract with the City, that the City should reserve all approval rights as to Barton G.'s replacement. Centerplate has formed an exclusive relationship with Barton G" a Miami-based event planning and production company. Barton G.'s involvement will help redefine culinary expectations at convention facilities, and in particular provide additional expertise for catering opportunities at our convention center. The optional enhancements offered to our clients through Centerplate's partnership with Barton G., are expected to take the Miami Beach Convention Center's food and beverage program to a new level. In addition to the culinary expertise and reputation that Barton G. brings to the City, Barton G. proposed to showcase the Miami Beach Convention Center and related facilities as preferred venues to their extensive list of social, corporate and philanthropic clients. Barton G.'s national client base, which includes numerous Fortune 500 corporations, provides limitless possibilities to the Miami Beach Convention Center for future programs and potential revenue. Centerplate's proposal included the following: Guaranteed Minimum Annual Rent of $1,250,000 (representing effective commission rate of 31.3% based on the first $4 million in annual Gross Receipts), plus the following additional commission percentage based on Gross Receipts: FROM TO CONCESSION RESTAURANT CATERING ALCOHOLIC 3RD FOOD & FOOD & FOOD & PARTY BEVERAGE BEVERAGE BEVERAGE BEVERAGE FIRMS $0 $4,000,000 0% 0% 0% 0% 0% $4,000,001 $7,500,000 30% 20% 22.5% 35% 55% $7,500,001 $10,000,000 32.% 22.5% 25% 37.5% 57.5% $10,000,001 $12,500,000 35% 25% 27,5% 40% 60% $12,500,001 $15,000,000 37.5% 27.5% 30% 42,5% 62.5% $15,000,001 and Greater 40% 30% 32.5% 45% 65% Capital Investment. Centerplate will invest up to $800,000 towards food and beverage capital projects to enhance the foodservice facilities at the Miami Beach Convention Center. This will include substantial upgrades to existing concession areas, creating unique brand experiences for visitors to the facility, Centerplate will also allocate 1.5% of Gross Receipts towards a Capital Reserve Fund. Marketing Reserve Fund. Centerplate will allocate the greater of an annual contribution of $20,000 or 1.5% of Catering Gross Receipts to a Marketing Reserve Fund to promote the food and beverage offerings (catering, concessions, etc.). In addition, Centerplate proposed to pre- fund $50,000 towards the Marketing Reserve Fund in order to start the marketing initiatives immediately. Commission Memo Re Food & Beverage Selection September 6, 2006 Page 70'7 Scholarship Fund. Centerplate proposed an annual contribution of $20,000. In addition, if the aggregate Gross Receipts at the Center for the first three years of the contract is greater than $20 million, Centerplate also proposed making a one time contribution of $50,000 to the scholarship fund (at the conclusion of the third contract year), The City Manager was briefed on the Committee's recommendation and after exercising his due diligence, concurs with the Committee's recommendation. Attached for your information, please find the following information relative to Centerplate's proposal to the City: 1, Letter from Barton G. dated May 26, 2006; 2, Centerplate's Financial Proposal; 3. Centerplate's Scholarship Fund Proposal (page 143); 4. Centerplate's Management Staff (pages 83 thru 86); 5. Business and Creative Marketing Business Plan (pages 127 thru 140); 6. Risk Assessment Plan (pages 111 thru 113); CONCLUSION The Administration recommends that the Mayor and City Commission adopt the attached resolution which accepts the recommendation of the City Manager pertaining to the ranking of firms pursuant to 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, if deemed to be in the city's best interest; authorizing the Administration to enter into negotiations with the top- ranked firm Service America Corporation d/b/a Centerplate, and if unsuccessful in negotiating an agreement with Service America Corporation d/b/a Centerplate, authorizing the Administration to enter into negotiations with the second-ranked firm Aramark; and further authorizing the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration, T:\AGENDA\2006\sep0606\Regular\Food & BeverageFINAL.doc - ~61A- MIAMI. CHICAGO. NEW YORK May 26, 2006 Dear Mr. Gus Lopez and Committee Members: Please let me take this opportunity to express my deep appreciation for your review and consideration of the proposed partnership between Centerplate and Barton G. at the Miami Beach Convention Center and related facilities. The Barton G, signature is synonymous with style, creativity and service, Our proposed partnership with Centerplate is unique within the industry and will enable us to redefine culinary expectations at convention facilities. The optional enhancements offered to your clients through this partnership will take The Miami Beach Convention Center's food and beverage program to a new level, forever changing the manner in which corporate meeting planners and social clients view high volume catering services. In addition to the culinary expertise and stellar reputation that Barton G. brings to this partnership, we will work in tandem with Centerplate to showcase the Miami Beach Convention Center and related facilities as preferred venues to our extensive list of social, corporate and philanthropic clients, Our national client base, which includes numerous Fortune 500 corporations, provides limitless possibilities to the Miami Beach Convention Center for future programs andjfotential revenue. /' / My deepest thanks for ~Howing us, in conjunction with Centerplate, to present our collective vision forthefutur~ of the Miami Beach Convention Center to you. /--.., Most sinc)refy, . /.......-- / BGW Design Limited, Inc, 3628 N,E. 2nd Avenue, Miami, Fforida 33137 Phone 305.576,8888 Fax:305.751.0040 www.bartong.com Miami Beach Convention Center Financial Proposal Centerplate is pleased to offer the following financial proposal to the City of Miami Beach (the "City") to operate the food and beverage services at the Miami Beach Convention Center (the "Center"), Jackie Gleason Theater, Byron-Carlyle Theater and Colony Theater ("Other City Facilities") under the terms and conditions outlined below, Scope of Services Exclusive right to operate all foodservice areas, bars, restaurants, refreshment stands and catering services to sell all food and beverage services at the Center and Other City Facilities, Term Initial tenn of five-years. The City, at its sole option and discretion, may further extend the agreement for up to two (2) additional successive five-year option periods. The extension options shall be mutually agreed by both parties. Capital Investment Centerplate will invest up to $800,000 ("Investment") comprised of the following: . Investment of$800,000 towards food and beverage capital projects as outlined in our capital budget to enhance the foodservice facilities at the Center during the first contract year. Investment shall be amortized on a five-year schedule from installation or deployment date, whichever is later, Investment would require industry standard buy-back provision in case of early tennination, If the food and beverage services agreement expires or tenninates for any reason whatsoever, with or without cause, prior to Centerplate's complete amortization of the investment, the unamortized portion of the investment will be reimbursed to Centerplate by the City or the successor concessionaire, In addition, CenterpIate shall rollover its unamortized investment balance under the current foodservice agreement at the Center, Commissions - Percentage of Gross Receipts Calculated on the increment and all tiers are adjusted by CPI Guaranteed Minimum Annual Rent of $1,250,000 (representing effective commission rate of 31.3% based on the first $4 million in annual Gross Receipts) plus the following commission percentage of Gross Receipts: Concessions Restaurant Catering (1] Food & & Food Cow! Food & Alcoholic Third party Annual Gross Receipts Beverage [2] Food & Bev. Beverage Beverage Subcontractor From: I To: % % % % % Zero $ 4,000,000 0.0% 0.0"/0 0.0% 0.0"10 0.0"10 $ 4,000,001 $ 7,500,000 30.0% 20.0"/0 22.5% 35.0"10 55.0"10 $ 7,500,001 $ 10,000,000 32.5% 22.5% 25.0% 37.5% 57.5% $ 10,000,001 $ 12,500,000 35.0% 25.0"/0 27.5% 40.0"10 60.0"10 $ 12,500,001 $ 15,000,000 37.5% 27.5% 30.0% 42.5% 62.5% $ 15,000,001 & Greater 40.0% 30.0"/0 32.5% 45.0"/0 65.0"10 [I] Percentage of amoWlt received by Centerplate from its third party subcontractor.;. [2] Centerplate proposes the same percentage rent for branded foods as the rates for the Concession Food & Beverage Sales, provided the commissions are decreased dolIar for dollar for the royalty fee (typically at 5.0"10 to 6.0"10 of sales) associated with the branded food concepts. Example is presented only to Illustrate methodology of calculation and does not establish expectation of actual results. ($ in th(Jl,sanJs) Low Mid !!i&h Concession Food and Beverage Sales $ 1,000 $ 1,100 $ 1,200 Restaurant Food and Beverage Sales 500 550 600 Catering Food and Beverage Sales 3.250 3,575 3,900 Alcoholic Beverage Sales 900 990 1,080 Other (Third Party Subcontractors) 600 660 720 Total Net Sales $ 6..258 S 6,875 $ 7,500 Minimum Base Rent 1.250 1.250 1.250 Other Contribution Centerplate shall make the following contribution: · Capital Reserve Fund As a % of Gross Receipts: 1,5% · Marketing Reserve Fund The greater of annual contribution of$20, 000 or As a % of Catering Gross Receipts: 1.5% In addition, we propose to advance or pre-fund $50,000 toward the Marketing Reserve Fund in order to start the marketing initiatives immediately. · Scholarship Fund Annual contribution of $20,000. In addition, if the aggregate Gross Receipts at the Center for the first three years of the contract is greater than $20 million, Center plate shall make a one time contribution of$50,OOO (at the conclusion of the third contract year). Alternative Extension Option If the five-year contIact ending June 30, 2011 is extended for a ten (10) year period, Centerplate proposes to invest $2.0 million toward foodservice equipment, upgrades and improvements during the first year of the extension period to be mutually agreed upon by both parties. Guaranteed minimum rent shall be as follows: Years I to 5 $1,250,000 Years 6 to 10 $1,350,000 Years 11 to 15 $1,450,000 All other terms outlined above would remain the same, Alternative Ballroom Option . If the ballroom under planning and development comes online during the initial contIact tenn, Centerplate proposes to invest up to $2.0 million in exchange for a ten-year contIact extension. Investment shall be based on (i) $1.5 million toward food and beverage capital projects to be mutually agreed by both parties (as outlined in our proposal) within 12 months prior to the completion of the ballroom, and (ii) $0.5 million toward marketing and promotional initiatives, In addition, we propose to pay the following commission percentage from the ballroom's Gross Receipts: Cate~ory From: To: Calculated on the increment and all tiers are adjusted by CPI Rent % Catering I Banquet Zero $1,000,001 $2,000,001 $3,000,001 $4,000,001 $5,000,001 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 and greater 25.0% 27.5% 30.0% 32,5% 35.0% 36,0% Guaranteed minimwn rent shall be as follows: Years 1 to 5 $1,250,000 Years 6 to 10 $1,350,000 Years 11 to 15 $1,450,000 All other terms outlined above would remain the same, The ancillary conditions are a critical part of this proposal, because they influence our ability to offer this type of commitment; thus, we have included a recap of those items as well, Other . The above commissions for the food and beverage services shall be paid as a percentage of Gross Receipts (total revenues less sales or other taxes, service charges, employee meals and reduced or at cost items), Gross Receipts will include the amount received by Centerplate from third party subcontractors and not the gross receipts generated by the subcontractors, . Proposal is based on tbe removal of the current restriction to pursue food and beverage catering business opportwrities for local social events sucb as banquets, wedding, and non-profit organization events that do not book an exhibit hall and are not conventions, trade shows, public shows, entertainment events, or consumer shows, . The Gross Receipts could potentially be affected if Centerplate does not have the rights to operate the Jackie Gleason Theater. Such reductions or deviations may negatively impact Centerplate's ability to generate sufficient operating income to support its investment. In consideration thereof, we propose to make an adjustment to the commissions payable to the City if the Jackie Gleason Theater is no longer part of the scope of services. . The foregoing proposal shall not constitute a binding obligation of Centetplate until (i) Centetplate and the City have negotiated and executed a definitive agreement (ii) the Board of Directors of Centerplate has approved the foregoing, without regard to good faith or any other standard, SCHOLARSHIP FuND Centerplate has been pleased to contribute towards tourism and travel scholarships for Miami Beach residents and graduates of Miami Beach High School who are interested in pursuing additional education in the food and hospitality industry. Since May, 2002, Centerplate has been proud to donate over $80,000 to support this worthy program. We propose to continue this support and pledge to contribute $20,000 annually. However, more importantly, we will dedicate ourselves to increasing awareness of the program as currently only six students are receiving the benefit of this incredible program. We would also pledge the time of our managers to visit schools to speak to students regarding careers in the hospitality industry in general and the Scholarship Fund specifically. We are well suited to assist in this endeavor because, prior to our partici- pation in the Scholarship Fund, we had publicized internships to attract and educate local students. In fact, that is how our very talented Director of Catering Sales, Tanny Lim, joined Centerplate. 143 c r plate '.ir,g special. S(J-IOLARSHIP FUND \lIA\lI BEACH ( (,\ \E"HION CENTER MANAGEMENT STAFF Centerplate understands that a professional, well-trained management team is critical to the efficient and successful operation of premier venues like those in Miami Beach. Centerplate has assembled a superior management team with unique knowledge of your facilities, Each of them exceeds the high standards Centerplate sets corporate-wide for its managers. Kyle Kandel, Centerplate' s senior executive responsible for your venues, brings an unparalleled level of experience to his position. Kyle has nearly 25 years of food service experience at some of the finest properties in the country, including: Premier Convention Centers Jacob Javits Center Washington, D,C, Fine Hotels andRestaurants St, Moritz, New York Maxim's, New York Garden City Hotel, Long Island Hyatt Regency Maui Resort and Spa, Maui United Nations Plaza Hotel, New York Boca Raton Resort, Florida Kyle is a Culinary Institute of America graduate and worked as a chef for over 15 years. In fact, he joined Centerplate as corporate executive chef. Very few can match Kyle's culinary and management background and, with his food service experience at Miami Beach, no executive is in a better position to partner with MBCC to build its future, Our culinary and management team in Miami Beach is very deep. Eric Bayne, our General Manager, has almost twenty years of convention center and entertainment venue experience. In fact he began his career in Miami in the late 1980s. Since that time, he has progressed through the management ranks with general management tenure at the Atlantic City Convention Center, Atlantic City, New Jersey; The Birmingham Jefferson Convention Complex, Birmingham, Alabama; the Arlington Convention Center, Arlington, Texas; the Lakeland Convention Center, Lakeland, Florida; and the Pyramid Arena, Memphis, Tennessee. Eric has also built a strong team, Our highly skilled Director of Catering Sales, Tanny Lim, joined us over 7 years ago with an extensive hospitality background and a degree in Hospitality Management, Of all ofTanny's many attributes, what makes her most special here in Miami Beach is her relationship with our clients. For those clients who hold multiple events here annually, Tanny is the confident liaison who already knows the intricacies of their events. They return to the Miami Beach Convention 83 : 'plate ~ special. () {'\ ![FICATIONS '- \1 j \ ] 13 [\CH (( i '\ \ ! '\j [(If, CENTEH c Centerplate C, c.~',i.,g sClr:-,e';hirlb special. QUALIFICATIONS MIAMI BEACH CON\TNTlON CENTER Center, not to find a Sales Person, but rather a good friend who has provided excellent service for many years. For first time clients, Tanny's experience and detailed knowledge of the facility, allows her to guide them through their events to the benefit of their guests. Carlos Segura, our Food and Beverage Director, brings experience and deep knowledge from a vast hotel, cruise ship and country club background. But even more important is the attitude which Carlos has instilled in our operations, Carlos continually challenges his team to be innovative and deliver truly delightful guest experiences. No coffee break is ever dull and ordinary, and he strives to make every buffet a work of art. This creative, can-do attitude has had a contagious effect on our entire culinary and service staff, driving our performance to new levels. He is a conscientious manager who leads his team by example to seek perfection consistently. Our proposed Executive Chef, Roderick Jackson, has over 12 years of experience in hospitality catering, most recently in Texas with experience gained at the American Bank Center Convention and Entertainment Complex, the Dallas Renaissance Convention Hotel, and the Dallas Convention Center. In fact in his most recent position in Corpus Christi, he was awarded the Best Caterer and Best Chef honors in two different competitions, Our highly talented Regional Executive Chef for the Southeast Region, Mike Pappas, is based in Jacksonville, As a former culinary professor, and with over ten years in the hospitality industry at premier hotels, restaurants and convention centers, he is formally recognized as one of the strongest chefs in our organization. For Centerplate, he has developed new and innovative menu concepts and was responsible for the successful execution and supervision of all of our events associated with the hosting of Super Bowl XXXIX, Chef Pappas has expertise in all aspects of food production, presentation and quality as well as a keen knowledge of food cost analysis, labor and inventory cost control, staff management and training. Chef Pappas has been instrumental, and will continue to be, in the development of new menus and presentation standards for our Miami Beach properties, In your Miami Beach facilities, we have built an incredibly strong team, all of whom are solely, and passionately, focused on your success, As we have in the past, we commit to provide you with direct executive support, Kyle Kandel is a member of Center plate's Senior Team and reports directly to our CEO, Janet Steinmayer, who is also actively involved in your business. We pride ourselves in hiring experienced managers and providing them the training and development opportunities to grow for the benefit of you, our client, 84 All of our management positions are expected to provide significant leadership to those employees who report to them. That is a given. However, our managers must also be able to lead and guide customers (meeting planners), partners (A/V, decorators), and suppliers. To be successful, our managers must be able to lead and persuasively communicate with those over whom they do not have formal control. Management job descriptions for each are as follows: General Manager With the latitude and expertise to make onsite decisions, the General Manager is ultimately responsible for all sales, operational and personnel activities relating to the preparation and delivery of all food and beverage service for our guests, Assistant General Manager/Food and Beverage Director The Assistant General Manager/Food and Beverage Director is generally responsible for overseeing operations and providing continuity in the absence of the General Manager, Specific duties include: · A primary focus on retail and restaurant operations. · Responsibility for catering services. · Personnel and Scheduling. · Oversight of the customer service and safety training programs provided for Centerplate employees, Executive Chef The Executive Chef is responsible for creating, maintaining and implementing new food concepts in all points of food service. In this role, it is expected that the Executive Chefwill accomplish the following: · Increase food quality and profits through effective control procedures that eliminate unnecessary waste and inefficiency, · Reduce liability risk through a stringent policy of safe working practices. · Enhance the positive perception of your facilities by delivering creative menus, high quality food and appealing tablescapes. Director of Catering The Director of Catering is responsible for the coordination and execution of all of Centerplate's catering services - from development of our marketing plan to service in function rooms, Among specific duties are: · Accountability for all catering sales, including development of an integrated effort to maximize those sales. · Co-promotion of Miami Beach in coordination with your sales personnel. 85 " (' : plate : "& special, QI,'\LIFICATIONS '\ 11\1\1l BrACH (,: \ I NT! ()'\ CENTEft c Centerplate Ctc.,,- ti"':~' ~Oritet hi ~,g special. QUALIFICATIONS 1\11A]\1I BEACH CO]\\TNTION CENTEH Catering Manager The Catering Manager reports to the Director of Catering and spear- heads new business efforts and the tactical application of our marketing plan to maximize annual revenues in Miami Beach. This is accomplished through: · Establishment of ties with business, social, civic and charitable organizations, · Creation of an effective presence at trade shows. · Coordination and planning of each event to ensure it captures or exceeds the customer's vision. · Enhancement of each event by serving as a creative and innovative subject matter expert for the customer, ultimately increasing sales. Retail Concessions Manager Reporting directly to the General Manager, the Retail Concessions Manager is responsible for all non-catered food service, Included in the responsibilities of the Retail Concessions Manager is: · Hiring, training and placement of staff. · Safety and sanitation standards in all areas, · Delivery of quality food, beverage and service. · Compilation of event histories and forecasting sales, · Marketing and merchandising of retail stands, 86 BUSINESS AND CREATIVE MARKETING Miami Beach Convention Center Centerplate envisions Miami Beach Convention Center not only as one of the nation's pre-eminent meeting facilities, but also as a year-round entertainment destination and event center for the Miami community. Retail Concessions We recognize that retail concession menus and food service environ- ments have a significant impact on the overall experience of many of your guests. Therefore, we have analyzed each area to provide you with menu and design concept proposals that will meet visitor expectations, reflect Miami Beach, and provide a dining experience seamless with your overall guest service vision, Our plan is to provide: · Retail concessions menus that deliver quality, taste and variety without sacrificing speed, We believe it is our obligation to add interest and excitement, with new flavors and preparations, and treat your visitors to something they didn't expect, especially at a quick-serve stand. · Environments to serve this food that are uniquely Miami Beach. In preparing for the future, our facility design team has already worked very closely with the company whose designs appear in this RFP, M3, A highly regarded member of the design profession, M3' s designs can be seen throughout the country, ranging from museums to prominent restaurants, Their work has appeared in many industry and business pub- lications and periodicals. To keep our retail menus fresh, Centerplate has an exclusive built-in advantage - our Culinary Leadership Network (CLN), the committee of our most talented and creative chefs system-wide, By establishing this forum of experts, we are able to maximize the talent of our entire staff, who together develop breakthrough recipes, share ideas, keep astride of shifting trends and standardize procedures. The exciting prospect for Miami Beach is that through the CLN, we will be able to share with you the latest advances that come out of everyone of our kitchens throughout North America, And that will keep the facili- ty's offerings fresh and cutting-edge. 127 C< .,.. '( rplate , " i' ;: s~ecial. fJ {'....1 ".'[' "~.' PLAlN ) .. ,"\.~, \11\MJ BEACH ( \ i ", \ 1\']1(/\ CENTH c (enterplate (I (S::I"'[ ~cr'",cth'r:g special. BUSINESS PLr\N MIA.r..lI BEACH CONYENTION CENTEH Our chefs have a disciplined approach to retail menu creation. We design each menu through local market analysis to ensure that the offerings are a match for local tastes, Subsequent review concentrates on more targeted consumer audiences - from kids to special diets to traditional vs. cutting edge. Our new Redefining Fresh program re-emphasizes our commitment to freshness - Fresh ingredients, Freshly prepared, in Fresh new ways resulting in the best-tasting meals possible, All of the following menus were created through a partnership of our chefs and operators to provide guests with a unique retail dining experience; one that will enhance their appreciation of your facility - by Creating Something Special. It is another part of Center plate's commitment to Create Something Special that separates us from off-the-rack services that our competitors often propose, At MBCC, our strategy is to provide customized solutions based on our on-going connection to Miami Beach and its visitor base, East Cafe \1'.": .....'. P1.~\ t. .""'" ,"~ .'" "i,;.I''' , ~ ~~' Centerplate has developed an exciting new concept for the East Cafe space, Babalu's Havana Grill. ,--,,' ~' Using traditional recipes and fine ingredients to deliver authentic flavor, Babalu's will serve tempting Cuban cuisine such as empanadas, tostones, maduros and a variety of Cuban Sandwiches. -' , .~ J!:., ~ However, the food won't be the only draw to Babalu's, the room itself will be entertaining featuring all the romance and adventure we associate with old Havana, Central to the space, hanging behind the buffet line, will be a massive weathered map of Cuba displayed in a distressed dark frame and illuminated by old fashioned clamshell lamps. However, this is just the beginning of the transformation, the walls flanking the buffet to left and right will be finished in a period fashion with dimensional shutters, aged walls and an illuminated Havana skyline seen through glazed window frames set into the walls. It will actually appear as if guests are viewing the cityscape from within a sultry, period Cuban nightclub. 128 We believe this Old Havana-themed restaurant concept is the first of its kind at any public facility in the nation, We will be providing your guests with a unique experience available only in Miami Beach. Not only will they be served delicious food, they will also be entertained by the environment of Babalu' s, Exhibition Hall Concessions Stands Our MBCC exhibition hall concepts will make a truly unique addition to the facility. They will offer quick-serve food that is higher quality, better tasting and served with more flair than anyone would ever anticipate from an exhibit hall's retail outlet. We have benchmarked the proposed menu items against offerings from best-in-class restaurants and we have performed strenuous perfecting in our own test kitchens on each. In addition, the operations and service systems are state-of-the-art and specifically designed to operate flawless- ly in a high volume venue like MBCC. At Centerplate, we don't believe convention center visitors should sacri- fice quality, taste or variety for speed, Rather, we think that it is our obli- gation to add interest and excitement, with new flavors and preparations, and treat the guests to choices and quality they didn't expect. Our policy is always to serve the best food possible, to serve it fresh and to serve it hot. Everything is served to the visitor fresh from preparation, We don't believe in pre-cooking and wrapping products to sit under a heat lamp and we won't serve visitors anything less than our best, We will include a number of options: alfresco Kitchen-style Italian specialties in a flavor-filled menu of exciting regional dishes - calzone and spicy sausages, zesty pizza, perfectly prepared pasta, and even crisp and robust Caesar salad, ~'!. ~i:,e~t~ll. I' I \; ~.. ~~. ,~~' , I Taste of the East Sophisticated Asian recipes using chicken, pork, tofu, vegetables and rice, accompanied by delicately subtle sauces 129 c : ~c::rplate :. . Z special. J) l c.:.:l'\F~S PL.AN' ) '. '~'.> ,. - \J I'. f\1I B L\CH C. }" \ I'\I]()'\ CLNTEH c Cer:terplate C~C;.;.et~~~g s,cmething special. BUSINESS PLAN 1\11/\1'111 BEACH CON\cENTION CENTER iT:i ~ 'iiIL7-, 'J ~~~~ ~~,{A E~~;C;~ . Tortilla Junction Mexican fare with South Florida flair. Bursting full bur- ritos. crisp and flavorful tacos and more - with all the. colorful. spicy tastes that give Mexican treats their distinct personality. Miami Beach Grill Fresh-grilled flavor plus quick-serve convenience. Big 1/3-pound burgers. crispy chicken tenders. and sizzling hot fries. 130 E.~ u.~ ~~ - ~~; go E:e~ ~ ii CD(/) ~.c~~i~ i~ ~~~; .gi~~.2~ ~~~@~j ~-~~.g~~~ < ~ ~i~~~~'g z ~ ~_~'j E3~ 8 CD ell we 0= ~ ~ ~ ~ c .. 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'" M '" o o r r ~ 51 ~ ! ..., Catering Menu Our theme, Creating Something Special, is the perfect description of how we approached the definition of our proposed Miami Beach Convention Center Catering Menu. While we welcome (and even encourage) special orders from our catering clients, we've also simplified ordering for them with a wide selection of chef designed reception packages, which include everything from pre- event appetizers to a variety of themed entrees and side dishes and luxurious desserts, The catering menu we have designed is extensive featuring our own gourmet creations, ethnic favorites and regional specialties. Just a few examples of our offerings designed specifically for Miami Beach include: Cocoa-Rubbed Beef Tenderloin Finished with black currants and a juniper berry bordelaise sauce Stuffed Chicken Fufu Served with sweet plaintains and Chihuahua cheese with red coconut coulis Mango Guava Cheesecake Garnished with berries, mango puree, and whipped cream In our experience, Creating Something Special for all of our guests, from meeting-goers to bridal parties, results in unique and memorable experiences, which translate into revenue increases that are equally memorable, Our recommended catering menu follows, 131 c ", ~.. e r plate : ;. "', c.', hi. [; special. 13 lSE\ESS PLAN ML\MI BEACH \\E!\'TION CENTER Jackie Gleason Theater We have been honored to support the prestigious Jackie Gleason Theater for the last ten years. In that time, we have hosted numerous catered events ranging from high school gradu- ations to speeches featuring corporate leaders to award shows and film festi- vals. Our event catering services include backstage catering, high vol- ume beverage service and custom catering in the Founders Room. We have also prided ourselves in tailoring our offerings to the show and audi- ence type, for example for child-friendly events we offer such kid favorites as as popcorn, hot dogs, fresh squeezed lemonade and gourmet- baked pretzels. Additionally, we downscale our bar operations to present a more family-appropriate atmosphere, JackieGLEASON lheater of Ihe Performing Arts Our specific physical enhancement recommendations are as follows: · Bar Areas 1. Purchase a wine cuvinet to enhance our International Wine Bar experience, A cuvinet uses nitrogen tanks to prevent oxy- gen from ruining the wine's flavor after a bottle has been opened. This will allow us to offer our guests fine wines by the glass in an efficient manner 2. Refinish all wood surfaces at all bar locations and add dramatic lighting at main bars to ensure an appealing environment 3. Artfully present premium liquor bottles and floral arrange- ments on the new architectural shelving to enhance the visual appeal and to drive additional sales 4. We will commission local Miami Beach artists to paint cultural scenes on canvas to further 'finish' the bar environments · Patio 1. Create an "Outdoor Cafe" Area (currently the smoking patio) featuring a LaVazza premium Italian coffee cart and other gourmet snacks. Our specific business-building recommendations are as follows: · We will more aggressively market our 'one-stop shopping' event system, Centerplate currently maintains a strong alliance network with local decorators, florists and other event support businesses, We will more formally promote this shared service solution to appeal to potential party planners, 133 .,;! I , !,{' I' fI1 "~_'._:!i>-"" , " ,',..",,1 '.r.t:.:~~; : plate special, 13 l :-]\TSS PLAJ.~ \1! \ 'Ii I 13L.\<:11 ( , ,',', I "i[( )'\ C[1\;TEH c Of note, these 'pre-designed' packages would also include an extremely special "Night at The Gleason with Barton G," featuring the drama of presentation for which Barton G, is justifiably acclaimed. Centerplate (" Lot:"g ~omt\.r.inf special. · We will also enhance our overall marketing materials with a special emphasis on our capability to create unique catered events in the Founders Room, Furthermore, we will partner with the City of Miami Beach and SMG to expand the Jackie Gleason Theater web site to feature our catering capabilities. · Additionally, to create overall awareness regarding our catering capabilities, we will hold tastings on specific event nights to highlight our capabilities to current theater-goers and send targeted mailings to specific event promoters and local companies to drive pre-show reception bookings. · Develop a cost effective backstage menu to be sent to all confirmed performances. BUSINESS PLA.t~ 1\1IAMI BEACH COJ\,'[NTlO]\ CENTER 134 Byron Carlyle Theater and Colony Theater ~ The Byron Carlyle Theater, in Miami Beach, is a fantastic place to enjoy the performing arts. Similarly, the Colony Theatre, located in the heart of the Lincoln Road district, is not only a beloved Art Deco landmark, but following its restoration, it will once again play host to the Miami Beach community as it provides a venue for a number of cultural arts programs. Critical to the smooth, high quality operations that Miami Beach theater-goers demand is a strong manager. We are extraordinarily fortunate to have Sonia Brito on staff. With an enormous amount of food-service experience here in Miami Beach, she not only has a deep grasp offoodservice management, but also an intimate knowledge of the Miami Beach market. She has managed our operations at the Jackie Gleason Theater for the past five years and recently added the Byron Carlyle Theater to her responsibilities. Our primary recommendations for both theaters concern the refurbishment of the refreshment stands to ensure that they are consistent with the architecture and ambiance of each facility. Importantly, as detailed in our Marketing Plan below, we will also strengthen our relationship with season ticket holders to drive incremental show purchasing as well as an increased number of catered events, 135 c plate special, Be SINESS PLAN M !Af\ll BEACH CON\TNTION CENTER MARKETING PLAN We have extensive experience not only in expertly serving guest func- tions, but also in attracting them. We are skilled in playing both the lead and supporting roles in the sales function of facilities throughout North America and we are eager to partner with you to continue to effectively market the Miami Beach Convention Center. We will build incremental revenues from events by soliciting additional booth catering business. Booth Catering Campaign An initial telemarketing campaign would focus on the exhibitors of key shows to drive booth catering, Working with an exhibitor contact list for each show, our catering sales professionals will contact each exhibitor and offer several options for food services in their booths. If the volume dictates, we may jointly elect to use third-party cus- tomer service professionals to place our outbound calls. The vendor selection and all scripts and training materials would be provided for MBCC approval. We are committed to using U.S,-based specialists only. Our catering sales professionals would also follow-up with exhibitors during show move-in days to inform them of food service options still available, Up-tiered menus physical improvements to the retail stands, and our exciting partnership with Barton G. will further enhance the perception of the Miami Beach properties, This is big news, and we will aggressively market these upgrades to garner additional social and corporate catering sales and to further enhance the reputation of the Center, We have a number of recommendations to deliver the "news" regarding Miami Beach's new and improved food service options: Direct Connection with Meeting Planners Through Centerplate's Customer Advisory Board, we have been able to forge close relationships with many of the nation's foremost meet- ing planners. This is a key distinction for Centerplate. 137 c .. plate i s pedal. \1.\ I~ K ETII\G PLAN \1!\ \11 BE:\CH (. .\1 '\IICi1' CENTER MARKETING PLAN We have extensive experience not only in expertly serving guest func- tions, but also in attracting them, We are skilled in playing both the lead and supporting roles in the sales function of facilities throughout North America and we are eager to partner with you to continue to effectively market the Miami Beach Convention Center. We will build incremental revenues from events by soliciting additional booth catering business. Booth Catering Campaign An initial telemarketing campaign would focus on the exhibitors of key shows to drive booth catering, Working with an exhibitor contact list for each show, our catering sales professionals will contact each exhibitor and offer several options for food services in their booths, If the volume dictates, we may jointly elect to use third-party cus- tomer service professionals to place our outbound calls, The vendor selection and all scripts and training materials would be provided for MBCC approval. We are committed to using U.S.-based specialists only. Our catering sales professionals would also follow-up with exhibitors during show move-in days to inform them of food service options still available. Up-tiered menus physical improvements to the retail stands, and our exciting partnership with Barton G, will further enhance the perception of the Miami Beach properties, This is big news, and we will aggressively market these upgrades to garner additional social and corporate catering sales and to further enhance the reputation of the Center. We have a number of recommendations to deliver the "news" regarding Miami Beach's new and improved food service options: Direct Connection with Meeting Planners Through Centerplate's Customer Advisory Board, we have been able to forge close relationships with many ofthe nation's foremost meet- ing planners, This is a key distinction for Centerplate. 137 plate '.[ special. \1 '\ IrK ETIJ\G PLAN \Tl \1\11 BEACH ( I I" , i'\T1Iil\ CENTUt Sampling We will invite key corporate leads, event planners, community VIPs, and the media to a special "Insider's Reception" prior to our public announcement of our partnership with Barton G, The guests will be excited by being treated to an "insider's "look at the facility enhancements. Equally impressive will be the spectacular catering presentation and entertainment. Premium Tasting and Exhibit We recommend partnering with an art gallery to host the ultimate Miami Beach art exhibit, The event would highlight the works of local artists paired with fine cuisine and live music, Miami Beach notables would serve as celebrity auctioneers to further the 'once-in- a-lifetime' nature ofthe evening. Of course, we will also include a gallery devoted to the event spaces available in each of your properties, Event Packages We will develop party packages for the social and corporate markets, for example: · Community groups · Weddings · Corporate Team Building · Fundraiser Receptions · Holiday · Children's Birthdays Tasting Room As we did successfully at the Colorado Convention Center, we recommend designing a Chef's tasting area to be located in the main kitchen. This area will be used to give potential groups a first hand look at the action of the kitchen, It also provides a professional venue for our Catering Sales team to showcase our cuisine and china, linen, floral, decor, and entertainment upgrades for their events. 139 c ;-: C ,plate - ~ c '~,", ~',: -,[ special. \1 \HKETING PLAN ~d 1,\"1] BEACH (, '<\FNTlC)1\ CENTER c Centerplate Cre;:.zt:Cif ,,:rr-ejhi",g special. l\iARKETING PLAN T\lIAMI BEACH CO.N\ENTION CENTEH Communication with Season Ticket Holders Season ticket holders are the most important customers in theater. We intend to assist you in their retention by keeping them informed of issues that concern them during the season and throughout the entire off-season as well. We will: · Keep all season ticket holders apprised of special events. · Hold regularly scheduled tastings to which they'll be invited. · Solicit their input on menu items, beverages and amenities. · Send them holiday samples of Centerplate baked goods. · Send them a "welcome back" greeting every year prior to the first show of the season. · Provide them a voucher to use the facilities for an off-season event at substantially reduced rates. This would give the theaters more of a year-round feel and promote off-season usage. Culinary Destination We will improve the perception of the MBCC as a culinary destination by developing a high profile for our Barton G. relationship in the Miami community. This will include visits to city-wide events, conferences, trade shows, and participation in Miami's culinary fairs. Additionally, there will be even more opportunity to market our services in social and corporate catering and we will formulate a potential client list to be contacted by our catering sales professionals outlining our new space and services. Relatedly, mail pieces, in the form of invitations, would be directed to key clients, notables and corporate executives to showcase our enhanced capabilities. In support ofthe Miami Beaach sales and marketing efforts, our resident Centerplate staff, and colleagues at Barton G., will drive additional business by Creating Something Special for your guests - by providing the highest quality event experiences imaginable. 140 RISK ASSESSMENT PLAN i Al~ \'~:1fI A risk assessment plan is valuable to identify the high level areas of risk to your satisfaction with a food service provider and to determine how well a provider can mitigate those risks. plate " special. The following are the primary risks to your satisfaction with any food service supplier and Centerplate's approach to eliminating each: 1. The provider's recommendations and solutions are 'cookie-cutter' and not specific to Miami Beach and its facilities. We define our business as Creating Something Special. We develop fresh, creative ideas that result in one-of.a-kind guest experi- ences. We also maintain a commitment to constantly elevate the culinary and service standards we offer our guests to restaurant quality and better. At the same time, we consistently aim to enhance the unique personality of each venue - increasing its excitement, its popularity and its bookings. This is unique to Centerplate~ we create services and solutions specific to each client rather than forcing "one-sized-fits-all" programs into multiple venus. Our Miami Beach approach is evident in our menus, our design, and our deep understanding of your objectives. Centerplate, as a company, is com- mitted to supporting you, and all of our clients, to draw out what is unique about each venue and to celebrate it. Our intention is that Miami Beach will serve as a model of what we want to achieve. Therefore, we can assure you that the success of your operations is as important to us as it is to you. PdSK /\>> LS5!\1E~T P L\:\ 2. The provider is inflexible and cannot react to my recommendations and new ideas. We strive to be true value-added partners and we are extremely flexible in accommodating and championing client-designed business building pro- grams. At Centerplate, we believe that our willingness to be flexible to our clients' needs is a strong building block for a solid partnership. As we have in the past, we look forward to supporting any Miami Beach-designed pro- gram, and will help your management to develop new and strong initiatives that will stimulate business growth. 3. The provider does not provide sufficient senior management atten- tion to Miami Beach. Centerplate's senior management team for Miami Beach is extremely strong. Furthermore, the reporting structure allows for streamlined and personal support. Eric Bayne, the General Manager, reports to Kyle Kandel, the Vice President, who, in turn, reports to Janet Steinmayer, our chief executive officer. '\], 'i I B F \C:]-I \' i '\i 1< )1" CENTEH 111 Kyle is in Miami Beach with great frequency and Janet has visited on a quarterly basis. All three are always available and dedicated to your success. And with your properties being our only accounts in the market, you can be assured of our undivided attention and that you will always receive our best resources regardless of any other events in the city. 4. The provider is simply an 'order taker' and does not proactively add value to my business. Our role is not simply to serve as your outsourced food service provider, but rather we also recognize our responsibility to add to the enjoyment of the visitor experience for all of your guests. To that end, we will be your subject matter expert - bringing you new ideas, challenging the status quo, and where appropriate, investing our capital to capture additional revenue streams. 5. Provider is unable to adequately attract or support the social catering market. Not only do we have a number of ideas to help you in driving the social business segnlent, as noted in our Marketing plan, but our partnership with Barton G. will ensure that there is truly no guest request that our combined teams will not be able to flawlessly execute. 6. Provider inadequately prepared to support community in an emer- gencysituation (e.g. hurricane). Our plan is in place and has been proven (and refined) over twenty years of experience. We consider ourselves active members of the community and we recognize our responsibility to assist shelter and feed our fellow citizens. One Miami Beach Procurement Director wrote of our preparedness during Hurricanes Wilma and Katrina: Center plate staff did an outstandingjob in preparing hundreds of meals on a daily basis often times with last minute "'pecial requests. The feedback received from City essential personnel (police officers, firefighters, public works, etc.) was 'very favorable. The responsive- ness of Carlos and his staffreflect great credit upon Center plate and its employees. We are honored to have been your partner for the past twentyyears~ we pledge to take the necessary steps to ensure that you are more than satisfied with our per- formance and support of your vision. Our plans for increasing the value of the opportunity for Miami Beach center around the addition of incremental revenue streams (building the social catering business) and generating additional sales from current business (improved retail concession outlets and additional in-theater amenities). For more detail, please see our Business and Creative Marketing section. 113 'plate . especial. RJSK -\:-, '-. FSST\1 [NT PLA:0! 1\ 1: UI.\CH \\] I!\I'\CE'\'TEH.