CITY OF ORLANDO
COUNCIL AGENDA ITEM

Items Types:
Business and Financial Services 		For Meeting of:
July 28, 2014
District: ALL From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No
Subject:
Amendment Two to Orlando Venues Food Service Management Agreement with Orlando Foodservice Partners, RFP10-0043A
Summary:

The City issued a Request for Proposal to provide Food Service Management for its Orlando Venues Department for an initial five year term with five one-year optional term extensions. On February 22, 2010, City Council approved the Advisory Committee's ranking and authorized the Director of Purchasing to sign an agreement with the top ranked firm, Orlando Foodservice Partners. The Director of Purchasing executed the contract for a term that started July 9, 2010.

On November 4, 2013 City Council approved the First Amendment to Agreement to exercise existing options to renew the Agreement five (5) years after Orlando Food Service Partners committed to $3,500,000 for Citrus Bowl renovations.  Both the City and its primary tenants have been satisfied with the performance of Orlando Foodservice Partners to date and it has met the City's financial performance projections.

Orlando Venues has requested a Second Amendment to the subject Agreement to include changes to the Orlando Venues. Amendment Two will include food service at the new City soccer stadium. Orlando Foodservice Partners will provide assistance needed in designing the soccer stadium kitchens at no cost to the City.  Amendment Two also includes updates to the Agreement to reflect the improvements being made to the Citrus Bowl and the net commission rates applicable for the renovated stadium design.  Rates are based on figures that Orlando Foodservice Partners originally had in its RFP, which remain the best in the concessions industry.  Finally, Amendment Two includes termination of food service by Orlando Foodservice Partners at the Bob Carr Performing Art Center effective October 1, 2014 when its management is scheduled to be turned over to Dr. Phillips Performing Arts Center. 
Fiscal & Efficiency Data:

This amendment to the Food Service Management agreement supports the Soccer Stadium Use Agreement which ensures the City does not end the year with a loss on the operations of the Stadium, guaranteeing the Soccer Stadium will break even.  Any increase of revenues in the stadium from any source will be used to offset expenses.  At the end of the year, the Team is responsible for reimbursing the City to bring the stadium to a break even position.

 

Under this Soccer Stadium Use Agreement the Team is entitled to one hundred percent (100%) of any commissions paid by Concessionaire during Team events and the City is entitled to one hundred percent (100%) commissions during other events.  Any City revenues derived from this contract will be included in the calculation of City Soccer Stadium-Related Operating Revenues for purposes of covering operating expenses incurred by the City in connection with its Soccer Stadium Management Responsibilities.  While there is a small possibility that concessions for other events will result in creating net profit for the stadium, it is not expected that increased revenue from concessions will result in net profit, and, as a result, such revenue will simply reduce the Team’s break even payment to the City.

 

According, this amendment to the Food Service Management agreement has no financial impact to the City.
Recommended Action:

Approval of the Second Amendment to Agreement for Food Service Management for Orlando Venues and authorization for execution by the City's Chief Procurement Officer.
Agenda Item attachment(s) on file in the City Clerks Office.
Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.
Contact: David Billingsley
Approved By:

Department Date and Time
Budget Outside Routing Approval 7/17/2014 12:01 PM
City Clerk 7/17/2014 12:19 PM
ATTACHMENTS:
Name: Description: Type:
BFS_-_Second_Amendment_to_Food_Service_Agreement_final.docx Second Amendment to Food Service Agreement Backup Material
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