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CITY COUNCIL AGENDA REPORT

City of AnaheimCONVENTION, SPORTS & ENTERTAINMENTDEPARTMENT

DATE: OCTOBER 6, 2015FROM: CONVENTION, SPORTS & ENTERTAINMENT

DEPARTMENTSUBJECT: AGREEMENT BETWEEN ARAMARK SPORTS AND

ENTERTAINMENT SERVICES, LLC AND THE CITY OF ANAHEIM FOR EXCLUSIVE FOOD AND BEVERAGE SERVICES AT THE ANAHEIM CONVENTION CENTER

ATTACHMENT (Y/N): YES ITEM # 13

RECOMMENDATION:

That the City Council, by Motion,

1. Approve the Concessions Agreement, by and between Aramark Sports and Entertainment Services, LLC and the City of Anaheim, granting Aramark the exclusive right to provide food and beverage service at the Anaheim Convention Center; and

2. Authorize and direct the Executive Director of the Convention, Sports & Entertainment Department to execute this Agreement and any other related documents, including all actions necessary to implement and administer the Agreement.

DISCUSSION:

The City of Anaheim (City) has enjoyed a long and successful relationship with Aramark Sports and Entertainment Services (Aramark) for the exclusive management of the food and beverage operation at the Anaheim Convention Center (Center). Aramark’s current agreement expires at the end of the year and the extension provision contained within had already been exercised. To that end, and in keeping with City of Anaheim contracting requirements, staff conducted an open Request for Proposal process for the selection of the Center’s food and beverage provider.

In May, the staff and its food service consultant, William Caruso, Founder and President of William Caruso & Associates, prepared a Request for Proposal (RFP) document inviting qualified food and beverage providers to submit their detailed proposals to the City for the opportunity to provide exclusive food and beverage services at the Center. The RFP was advertised and distributed to the following well-known food and beverage providers within the convention center industry:

Agreement with Aramark Sports and Entertainment Services, LLC for Exclusive Food and Beverage Services at the Anaheim Convention CenterOctober 6, 2015Page 2 of 3

Aramark Sports and Entertainment Services Centerplate Corporation Levy Restaurants Premier Food Services Legends Hospitality Ovations Food Service Sodexo Culinaire International Sportservice Corporation

The RFP identified the following minimum qualifications for the food and beverage providers:

Continuous operation for the past five (5) years or more and five (5) years’ experience in providing food and beverage services within a convention center.

Minimum annual gross revenue of not less than $10,000,000 in at least one venue for a minimum of five (5) consecutive years.

Commitment to provide $2M to be used for the procurement of kitchen equipment, smallwares and related items associated with the kitchen and food and beverage operations related to the Betterment VII expansion project.

Financial resources, which in the opinion of the City, are sufficient to meet the operating requirements, including inventory, management and staff, necessary to provide food and beverage services to clients, exhibitors and guests of the Center.

Demonstrate the ability to supplement management and catering staff for major event needs.

Prospective food service providers were required to submit their proposal along with evidence of their qualifications to the City by June 26, 2015. Proposals were received from three providers: Aramark Sports and Entertainment Services, Premier Food Services and the Centerplate Corporation.

In order to ensure a thorough and impartial evaluation of the proposals, the City created a committee for the review of the proposals and attendance at the Oral Interview/Presentations. The Review Committee was comprised of:

David Meek, Convention Center Manager; Tom Morton, Executive Director, Convention, Sports and Entertainment Dept.; Tom Philip, Financial Services Manager, Convention, Sports and Entertainment Dept.; Chris Snyder, President, Taps Fish House & Brewery, The Catch & Lillie’s Q; Ed Munson, President and CEO, Cypress Chamber of Commerce and President of the

City of Anaheim’s Community Center Authority; Jay Burress, President and CEO, Visit Anaheim; Greg Garcia, Deputy City Manager.

Agreement with Aramark Sports and Entertainment Services, LLC for Exclusive Food and Beverage Services at the Anaheim Convention CenterOctober 6, 2015Page 3 of 3

Each member of the Review Committee scored the written Proposals submitted and also attended and scored an Oral Interview/Presentation. The evaluation criteria included items such as:

Experience in large convention center operations – similar buildings Financial resources and capability to perform the services required Management and Operational Qualifications Marketing, Merchandising and Sales Creativity On site Management Team Qualifications Bottom Line Financial Results to the City Sustainability and Overall Business Plan

The Review Committee, in a majority vote, recommended awarding the exclusive food and beverage service agreements for the Center to Aramark. A majority of the Review Committee agreed that while both Premier Food Services and the Centerplate Corporation submitted very good proposals and had excellent references from the venues in which they serve, Aramark excelled. Aramark proved more qualified based on their experience in comparable sized venues, the experience and qualifications of the proposed General Manager and Executive Chef, commitment to sustainability and the creativity of their future proposed programs and breadth of menus offered.

The proposed Agreement for food and beverage services at the Center would run from January 1, 2016 through December 31, 2022, with three additional one year options. Aramark will receive an annual base management fee of $650,000 or 4% of Gross Receipts, whichever is less, for their services and be eligible for Incentive Fees up to an additional 20% of the base fee paid by the City, per year, contingent upon established performance criteria.

IMPACT ON BUDGET:

Revenues generated from the Agreement will be used to support operations in the Convention, Sports and Entertainment Department.

Respectfully submitted,

Tom Morton, Executive DirectorConvention, Sports & Entertainment Department

Attachment:1. Aramark Sports and Entertainment Agreement – Anaheim Convention Center