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Home My WebLink AboutR-03-0624J-03-478 05/22/03 0 3 ,_ RESOLUTION N0. A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO TERMINATE THE AGREEMENT WITH CATERING BY DAVID LYNN, INC. (CONCESSIONAIRE) FOR THE PROVISION OF FOOD AND BEVERAGES AT THE ORANGE BOWL STADIUM; FURTHER, BY A FOUR-FIFTHS (4/5 THS) AFFIRMATIVE VOTE, RATIFYING, APPROVING AND CONFIRMING THE CITY MANAGER'S FINDING THAT A VALID EMERGENCY EXISTS, WAIVING THE REQUIREMENTS FOR COMPETITIVE BIDDING PROCEDURES AND AWARDING A CONCESSION AGREEMENT, UNDER SUBSTANTIALLY THE TERMS SET FORTH IN "ATTACHMENT B," ATTACHED AND INCORPORATED, TO BOSTON CONCESSIONS GROUP, INC., TO REPLACE THE CURRENT CONCESSIONAIRE. WHEREAS, Catering By David Lynn, Inc. is the current concessionaire for the Orange Bowl Stadium; and WHEREAS, David Lynn has failed to pay the City of Miami compensation from November 2002 through March 2003 and has an outstanding balance of $330,182.90; and CITY COSMON A EET-c OF 1-1 s3z'.union No. 0 624 WHEREAS, the Department of Conferences, Conventions and Public Facilities made several attempts to obtain payment from David Lynn, Inc. (Concessionaire), and has issued a Notice of Default; and WHEREAS, Paragraph XVII of the Agreement with David Lynn (Concessionaire) qives the City Commission the richt to terminate the Agreement as a result of the Concessionaire's default; and WHEREAS, the City has formed a selection committee and has begun the formal Request For Proposal ("RFP") process to replace the concessionaire, which has been developed incorporating recommendations from the Orange Bowl Advisory Board and the Hammes Company; and WHEREAS, the City Manager has found that a valid emergency exists to waive the formal RFP process and to enter into an agreement with a temporary concessionaire not to exceed a three-month period; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Page 2 of 4 03— 94r4 Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Manager is authorized!' to terminate the Agreement with Catering by David Lynn, Inc. (Concessionaire) for the provision of food and beverages at the Orange Bowl Stadium. Section 3. By a four-fifths (4/5th,) affirmative vote, the City Manager's finding that an emergency exists, waiving the requirements for competitive sealed bidding procedures is ratified, approved and confirmed, and awarding a concession agreement, under substantially the terms set forth in "Attachment B," attached and incorporated, to Boston Concessions Group, Inc. to replace the current concessionaire, is approved, pending the completion of the formal RFP process for a permanent concessionaire. Section 4. The City Manager is further authorized!/ to execute a Concession Agreement, under substantially the terms set forth in "Attachment B," attached and incorporated. ii The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. Page 3 of 4 �3- s24 Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.' PASSED AND ADOPTED this 22nd day of May , 2003. ATTEST: s�/_ • .I PR CILLA A. THOMPSON CI CLERK '21 c MANUEL A. DIAZ, Y R ESS If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 4 of 4 03- 624 Attachment A - Event Date Event Rent Utilities Tax On Utilities Total 11-21-02 U of M vs. Pittsburgh $103,811.40 $3,221.62 $209.41 $107,242.43 12-07-02 U of M vs. Virginia Tech $146,799.60 $4,525.75 $294.17 $151,619.52 12-14.02 Bowl Before the Bowl $3,067.35 $96.86 $6.30 $3,170.51 01-11-03 Honduras vs. Germany $12,794.43 $385.92 $27.01 $13,207.36 01-18,-03 Tomeo de Las Americas $10,842.59 $327.24 $22.91 $11,192.74 01-22-03 Torneo de Las Americas $6,348.25 $191.70 $13.42 $6,553.37 01-25-03 Tomeo de Las Americas $10,278.78 $307.61 $21.53 $10,607.92 02-08-03 USA vs Argentina $21,738.50 $662.60 $46.38. $22,447.48 03-05 & 8- 03 Soccer $1,399.31 $43.22 $3.02 $1,445.55 04-05-03 Canes Festas $4,700.31 $145.96 $10.22 $4,856.49 04-30-03 Colombia vs Honduras $5,293.66 $159.50 $11.16 $5,464.32 Total $337,807.69 Credits ( $ 7,624.76) Salestaxletwl2-0S-02 Total Outstanding Amount $ 330,182.90 03- 6 '4- ATTACHMENT -B The following are the basic terms and conditions pursuant to which the City of Miami agrees to grant the Concessionaire the exclusive right to operate Concessions in the Concession Areas at the Orange Bowl Stadium (the "Stadium"). Definitions: a. "Concessions" means the sale of food and beverages in the Concession Areas (herein defined) to patrons of events at the Stadium and all operations necessarily incidental to such sale in accordance with the provisions of this Agreement. b. "Concession Areas" means all food and refreshment stands and vending areas in the interior of the Stadium and in the area between the exterior of the Stadium structure and the green picket fence surrounding the structure. "Concession Areas" does not mean the Press Boxes, tenant office spaces, City office spaces, City's operation spaces, Athletic Club, or any adjacent areas outside the confines of the Location. C. "Gross Receipts" means all moneys paid or payable to the City for sales made or services rendered at or from the Concession Areas, or from any other source related directly or indirectly to the Concessions, and revenues from Subcontractor Items (herein defined), whether collected or uncollected, for cash or credit. Gross Receipts includes all moneys from any temporary or permanent concessionaire, whether made from temporary or permanent stands, or to customers in the seating areas or concourse areas by the Concessionaire's employees, traveling concessionaires, hawkers or hustlers, whether collected or uncollected, for cash or credit.. Gross Receipts shall be computed prior any deduction for "spoilage or "shortage". Inventory Disappearances or shrinkage up to a maximum of one percent (1%) of gross receipts are excluded from the "gross receipts" provided, that any such inventory disappearances or shrinkage's must be immediately reported to the City. d. Subcontractor(s) means those individuals hired by the Concessionaire to sell concession products authorized by the City Manager or designee in writing (Subcontractor Items"). Subcontractors are also referred to as "Third Party Vendor(s)". 1. Term: The term shall be three (3) months commencing June ! 2003 and terminating August , 2003. The City shall have the option to extend the term on a month-to-month basis upon the same terms and conditions contained herein, by giving Concessionaire at least thirty (30) days prior written notice. 03- 624 2. Compensation: Subject to the provisions of Section 5 below, the Concessionaire shall pay to the City compensation based on a percentage of Gross Receipts, as follows, not later than the fifteenth (15) day each month. 40% Food Sales 40% Alcohol Sales 42% Third Party Vendor Sales 3. Subcontracting: Concessionaire agrees that it shall not subcontract the sale of any of the following items: soda, hot dogs, sausage sandwiches, hamburgers, candy, popcorn, and potato chips. Subcontracting with a third party vendor for other Subcontractor Items must be agreed upon in advance and in writing by the City Manager or designee and shall be limited to portable stands. 4. Food Quality: Concessionaire shall provide the best quality of both food and beverage products to the patrons of the Stadium, and the City reserves the right to determine whether a particular product or ingredient complies with the aforementioned standard. 5. Guarantee: Based on the list of scheduled events and estimated concessions revenues to the City listed in Attachment C, Concessionaire has agreed to 1 guarantee a minimum of $150,000 return to the City during the initial 3 month term.. In the event that one or more of the scheduled events listed in Attachment C are cancelled or postponed, and as result thereof, there is a significant reduction in the amount of Gross Receipts, then the City and the Concessionaire agree to renegotiate the amount of the Guarantee, in good faith Upon commencement of the term, Concessionaire shall deposit with the City the amount of the Guarantee. 6. Insurance: Concessionaire is required to provide and maintain, during the term of this agreement, current insurance, as approved by the City' Risk Management as follows: I. Commercial General Liability A. Limits of Liability Bodily Injury and Property Damage Liability Combined Single Limit Each Occurrence $1,000,000 General Aggregate Limit $2,000,000 Personal and Adv. Injury $1,000,000 Products/Completed Operations $1,000,000 Fire Damage Liability (any One Fire) $50,000 Note: Liquor Liability should be endorsed if beer and wine is sold at establishment. II. Business Automobile Liability A. Limits of Liability Bodily Injury and Property Damage Liability Combined Single Limit 03- 624 Any Auto Including Hired, Borrowed or Non -Owned Autos Any One Accident $300,000 III. Worker's Compensation Limits of Liability As defined in Chapter 440 of the Florida Statutes City of Miami/Orange Bowl should be named as an additional insured with respects to General Liability and Automobile Coverage. 7. Licenses: The Concessionaire shall pay for and obtain all licenses and permits necessary for the operation of the Concessions, including those required for the on -premise sale of liquor, beer and wine, Concessionaire represents and warrants that it currently has, and at all times during the term hereof shall maintain, all licenses and permits required for the fill and proper performance of this Agreement. 8. Maintenance/Cleanup: The Concessionaire shall repair and maintain, at his own cost and expense, all Concession equipment and furnishings needed to conducts its operation. The Concessionaire and City shall jointly conduct a walk through of the concession areas prior to the concessionaire's occupation to inventory the equipment and condition of the concession areas, including equipment. The Concessionaire shall provide its own janitorial services, and shall pick up, clean and dispose of all litter for all space assigned or used in its operations. The Concessionaire shall also clean and keep all Concession areas free of debris before, during and after events. In additional, the Concessionaire shall provide at its own expense, all garbage, trash, and rubbish receptacles within the confines of its designated vending areas, and shall provide sufficient numbers of receptacles for its own use. Dumping of such receptacles and the removal of trash, rubbish, and garbage from Concession Areas shall be the responsibility of the Concessionaire. 9. Audit and Inspection Rights: The City shall have the right to audit, or caused to be audited those books and records of Concessionaire which are related to the Concessionaire's performance under this Agreement for a period of up to (3) years following the expiration of the Term. Concessionaire agrees to maintain all such books and records at its principal place of business I, in Miami -Dade, Florida for a period of three (3) years after Expiration of the Term. 03- 624 ATTACHMENT C The following is a list of events scheduled to be held at the Orange Bowl Stadium DATE EVENT ESTIMATED ATTENDANCE ESTIMATED PER CAP ESTIMATED CITY REVENUES @40% OF GROSS CONCESSION SALES 06-07-03* Venezuela vs Honduras 7,500 4.65 $ 12,977 06-26-03* Venezuela vs Peru 7,500 4.65 $ 12,977 07-13-03** Gold Cup/Jamaica vs Colombia 20,000 4.65 $ 34,605 07-15-03** Gold Cup/Guatemala vs Jamaica 15,000 4.65 $ 25,953 07-17-03** Gold Cup/Colombia vs Guatemala 20,000 4.65 $ 34,605 07-20-03** Gold Cup/Quarterfinal 25,000 4.65 $ 43,256 07-23-03** Gold Cup/Semifinal Match 25,000 4.65 $ 43,256 07-26-03** Gold Cup/Third Place 25,000 4.65 $ 43,256 08-01-03*** Fair Play Cup -Club Teams 5,000 4.65 $ 8,651 08-03-03*** Fair Play Cup -Club Teams 5,000 4.65 $ 8,651 Estimated Revenues to City $ 268,186 * Processing contract ** Executed contract *** Tentatively scheduled All events are subject to cancellation. 03-, 6 ? 4