A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN RECOMMENDATION OF THE CITY MANAGER AND WAIVING, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT, AS PERMITTED UNDER SECTION 2-367 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 3 TO THE AGREEMENT, DATED JUNE 5, 2013, WITH SERVICE AMERICA CORPORATION D/B/A CENTERPLATE (CENTERPLATE) FOR CATERING CONCESSIONS AT THE CITY OF MIAMI BEACH CONVENTION CENTER; SAID AMENDMENT (1) EXPANDING THE SCOPE OF THE AGREEMENT TO INCLUDE THE FOOD AND BEVERAGE SERVICES FOR TWO CITY FACILITIES (CLUBHOUSE BUILDINGS), LOCATED WITHIN THE 21ST STREET COMMUNITY CENTER COMPLEX (CURRENTLY KNOWN AS THE “CARL FISHER CLUBHOUSE” AND THE “LITTLE STAGE THEATER”), CURRENTLY BEING RENOVATED AND REPURPOSED FOR USE AS DINING AND CATERING FACILITIES; AND (2) APPROVING CENTERPLATE’S CAPITAL CONTRIBUTION, IN AN AMOUNT NOT TO EXCEED $750,000, FOR THE CLUBHOUSE BUILDINGS; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL AMENDMENT.

The Administration recommends that the Mayor and Commission waive the formal competitive bidding requirement, by a 5/7ths vote, as permitted under Section 2-367(e) of the City Code, and to approve Amendment #3 as being in the best interest of the City and the overall Convention Center campus.

With the anticipated completion of renovations to the historic Carl Fisher Clubhouse, located in Collins Canal Park, to the north of the MBCC, Centerplate has proposed to extend their agreement to include the food and beverage services operation and management of this facility with the same financial structure as outline in their existing MBCC agreement (Exhibit A and Exhibit B). 

The Carl Fisher Clubhouse will consist of two facilities: the main clubhouse which will be programmed as event space and the annex which, as described below, will be activated as a food & beverage establishment (although still available for use as event space on select occasions, as has already been requested by many event producers).  

To ensure continuity of operations in the overall Miami Beach Convention Center campus, the administration recommends the waiver of the competitive bidding requirement and approval of the proposed Amendment No. 3, extending the scope of the Agreement to include the facilities currently known as the Carl Fisher Clubhouse for the term of their existing contract set to expire in September 30, 2022.  As part of this existing contract terms, Centerplate's contract will be extended for the number of months that the building has been under renovation up until the date that TCO is achieved, which could very likely take their existing contract unto 2021 or 2022.   

All parties believe that this venue is an integral part and extension of the Convention Center and having a third party operator could negatively impact the efforts of Spectra and Centerplate, in booking events in all venues on the campus, while utilizing this space as additional sales revenue to incoming conventions and event producers.

The City will maintain full authority related to all food and beverage operation and management decisions regarding concepts, food and beverage pricing, quality, sales, marketing and P&L oversight.

The City will also have final say in the staffing levels and personnel of the food and beverage service operation and organizational management.

Accordingly, the new financial structure regarding inclusion of the Carl Fisher Clubhouse includes:

Decor: Centerplate will invest up to $750,000.00 in capital to cover the initial infrastructure for the Carl Fisher Clubhouse to turn the venue into the desired look and feel. 

Management Fee: Centerplate receives a management fee of 7% of gross receipts. This provides an incentive for all parties to have a focused sales effort and grow revenue for the future.

Net Operating Profit: Net Operating Profit is distributed to the City and Centerplate on a regular schedule. The City receives 95% of the Net Operating Profit, and Centerplate receives 5% of the Net Operating Profit. 

This also solidifies the collective goal to operate efficiently while delivering high quality services. Profit sharing at 5% is an opportunity for the City to make more money, while putting goals in place regarding sales targets; this is an incentive to increase the margins within food and beverage and to allow the City full control and decision making related to pricing and overall market approach.

Projected Revenues and Incomes

The current agreement provides the City with increased control over the financial and operational management which will give the City the ability to actively participate ensuring the most effective financial approach is in place and have decision-making ability in delivering a first class experience for local groups and conventions.

Quality and service standards; staffing, selection of events, financial interests. The City has developed a series of initiatives with Centerplate and Spectra and will now be positioned to ensure those standards are implemented and maintained in all spaces in the Convention Center campus. The City can also be active in the pursuit of local social business and set parameters for pricing going forward, as well as choosing the chef that will be in place.

This new fee structure is anticipated to deliver increase overall "net" revenue to the City. This is due to the fact that the City is reviewing all financial results monthly. 

The Administration believes that this amendment will enhance the Convention Center campus and set a solid strategy and success for the Convention Center and the quality of clients it will attract, while providing the community with an exciting new venues.