HomeMy WebLinkAboutContract 26345 f CITY SECRETARY
CONTRACT NO.
RENEWAL AND AMENDMENT OF CONTRACT
FOR FOOD AN BEVERAGE CONCESSION AT
FORT WORTH CONVENTION CENTER
STATE OF TEXAS
KNOW ALL PERSONS BY THESE PRESENTS:
COUNTY OF TARRANT
WHEREAS, on June 14, 1994, the Commissioners Court of Tarrant County,
Texas (hereinafter refereed to as the "County") acting through its County Judge entered
into a contract with Fine Host Corporation, a Delaware Corporation, of Greenwich,
Connecticut (hereinafter referred to as the "Concessionaire") to provide a food,
beverage, and related concession operation at the Fort Worth/Tarrant County
Convention Center; and
WHEREAS, on October 28, 1997, the City purchased from the County the Fort
Worth/Tarrant County Convention Center and all rights, terms and conditions of said
Contract were assigned to the City of Fort Worth (hereinafter referred to as "City"). The
name of the Fort Worth/Tarrant County Convention Center was subsequently changed
to the Fort Worth Ccnvention Center (hereinafter referred to as the "Center"); and
WHEREAS, the City of Fort Worth and Fine Host Corporation understand and
agree that all rights of the Commissioners Court of Tarrant County, Texas under the
original contract were assigned in full to the City; and
WHEREAS, on June 22, 1994 and in accordance with Section 901 of the
Contract, Concessionaire entered into as Assignment of Rights Under Concession
Contract with Tarrant County Concessions, L.L.C., a Texas limited liability company and
certain rights, terms and conditions of Concessionaire under said Contract were
assigned to Tarrant County Concessions, L.L.C. Concessionaire assigned all rights
under said contract to Tarrant County Concessions, L.L.0 except those set forth in
SECTION 608, INVESTMENT IN THE CENTER and SECTION 1102(3), PROCEDURE
FOR TERMNATION AND REPOSSESSION. A copy of the Assignment Contract is
attached hereto and made a part hereof as Exhibit"A".
WHEREAS, pursuant to Section 1204, entitled "SECTION 204.AMENDMENTS",
of the original contract between the County and the Concessionaire, said Contract may
be amended from time to time by written contract duly authorized and executed by
representatives from all the parties hereto; and
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WHEREAS, the Contract provided for a six-year primary term beginning July 1,
1994 and for one (1) five (5) year renewal option thereafter; and
WHEREAS, City, Concessionaire and the Tarrant County Concessions, L.L.C.,
now parties under the contract, desire to renew and extend said Contract, as amended,
for a new primary term of three (3) years with two (2) one-yearrenewal options and with
the further amendments to the terms and provisions as provided herein;
NOW, THEREFORE, City, Concessionaire and the Tarrant County Concessions,
L.L.C. agree to renew, extend and amend the Contract as follows:
1. Section 201, Term of Contract, is hereby amended to read as follows:
"Section 201. TERM OF CONTRACT. This contract shall be in effect for
a period of three (3) years, beginning July 1, 2000 and ending June 30, 2003.
This contract may, however be extended for two (2) one-year periods, on the
same terms and conditions specified herein, provided, however, such
extension or any further changes to the original contract as herein amended
must be approved by the Fort Worth City Council.
Upon expiration of the initial term or extension, Concessionaire and Tarrant
County Concessions, L.L.C. agree to hold over under the terms and
conditions of this Contract for such a period of time as is reasonably
necessary to obtain a replacement Concessionaire, provided such period
shall not exceed ninety (90) days."
2. Section 301, Concession Rental, is hereby amended to read as follows:
"SECTION 301. CONCESSION RENTAL. For the rights and privileges
granted, the Concessionaire and Tarrant County Concessions, L.L.C. shall
pay the City, through its Director, each month during the term hereof, the
following amounts:
(A)
A percentage of adjusted gross sales (as defined here as the gross
sales less sales tax) on all basic concession items sold, including, but
not limited to, all soft drinks, beer, alcoholic beverages, peanuts,
popcorn, cotton candy, chips, doughnuts, hamburgers, pretzels,
sandwiches, hot dogs, french fries, chili dogs, coffee, barbecue and
pizza. The percentage shall be based on the following formula:
For adjusted gross sales up to $800,000 annually:
(contract year basis) 35.5 percent
For adjusted gross sales of$800,001 and over, annualy� -7�G -.�,f��GI�D
1117 � G?15 ;
38.5 percent
(B)
When the Concessionaire and Tarrant County Concessions, L.L.C.
operates as a caterer (defined in this paragraph only as the sale of
group meals or food to an organization) and the billing is to that one
organization, (not an individual sale of food) a flat fee of twelve (12)
percent of adjusted gross receipts (as defined in this paragraph only as
less sales tax and service charges) or any other percentage of gross
receipts as approved by the Fort Worth City Council will be paid to the
City by payment directly to the Center. However, it is agreed that no
percentage increases over the amount of twelve (12) percent will begin
before the opening date of the new ballroom at the Fort Worth
Convention Center.
When operating as a caterer providing alcoholic beverages, the fee as
to those alcoholic beverages will remain as established concession
rates.
3. Section 302, Notice, Place and Manner of Payments, is hereby amended to
read as follows:
"SECTION 302. NOTICE, PLACE AND MANNER OF PAYMENTS.
Payments shall be made by check at the office of the Director at the Center,
or at such place within the City of Fort Worth, Texas as the Director may
hereafter notify Concessionaire or Tarrant County Concessions, L.L.C., and
shall be made in legal tender of the United States.
4. Section 303, Payments, is hereby amended in part to read as follows:
SECTION 303. PAYMENTS. All payment due the City shall be due and
payable without demand at the office of the Director.
The remainder of this section shall remain in full force and effect.
5. The City, Concessionaire and Tarrant County Concessions, L.L.C.
understand and agree that for clarification purposes, in each Section,
beginning with Section I and throughout the remainder of the Contract, the
phrase "Tarrant County Commissioners Court" shall be understood to mean
the "City of Fort Worth".
6. The City, Concessionaire and Tarrant County Concessions, L.L.C.
understand and agree that for clarification purposes, in each Section,
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beginning with Section I and throughout the remainder of the Contract, the
words "Executive Director" shall be understood to mean "Director".
7. The City, Concessionaire and Tarrant County Concessions, L.L.C.
understand and agree that for clarification purposes, in each Section,
beginning with Section I and throughout the remainder of the Contract, the
phrase "Fort Worth/Tarrant County Convention Center" shall be understood
to mean "Fort Worth Convention Center".
8. The City, Concessionaire and Tarrant County Concessions, L.L.C.
understand and agree that for clarification purposes, in each Section,
beginning with Section I and throughout the remainder of the Contract, the
word "County" shall be understood to mean "City".
9. All of the terms and provisions of the original Contract between the County
and the Concessionaire shall remain in full force and effect except as
specifically amended herein.
EXECUTED on this. the ��� day of , 2000.
ATTEST: CITY F T OR H
X� - B
r- I -JAll) y
Ct City ecretary Mike Groomer
Assistant City Manager
APPROVED AS TO FORM
AN LEGALITY: Contract Authorization
Assistant4 Attorney bate
Date: G uo
ATTEST:1------- FINE ST CORPO TION
4
------ �\
By:
Corporate Secretary Chris Verros, Group President
of Recreation and Leisure
�CCUM
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Hp �C .
ATTEST: TARRANT COUNTY CONCESSIONS,
L. a xas limited liability
mpany
B
Corporate Secretary
STATE OF TEXAS
COUNTY OF TARRANT
BEFORE ME, the undersigned authority, a Notary Public in and for the State
of Texas, on this day personally appeared Mike Groomer, known to me to be the
person whose name is subscribed to the foregoing instrument, and acknowledged to
me that the same was the act of the City for Fort Worth and that he executed the
same as the act of the said City of Fort Worth for the purposes and consideration
therein
expressed and in the capacity herein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this Ad-- day of
lc�v.4 pry,V,)o �,� , 2000.
N u b I i c in a d r the ate of
Texas
n / ; - �; SARAH JANE ODLEe
STATE OF I 1,'�.��1 ALL} l*ply *. NOTARY PUBLIC
State of Texas
Comm. Exp.
04
COUNTY OF � l �� 01 23 20'32
BE RE KE, the undersigned authority, a Notary Public in and for the State
of r( on this day personally appeared Chris Verros, Group President of
Recreation and Leisure for FINE HOST CORPORATION, known to me to be the person
whose name is subscribed to the foregoing instrument, and acknowledged to me that the
same was the act of the Fine Host Corporation and that he executed the same as the act
of the said Fine Host Corporation, this being attested by the corporate secretary for Fine
Host Corporation as evident by his/her signature, for the purposes and consideration
therein expressed and in the capacity herein stated.
J
lVE UN ER MY HAND AND SEAL OF OFFICE, this 1. �� t day of
<E 2000.
(;:::A I/(a/
II
iwubl', in an rfor the St a of
ANGELINE TAYLOR
NOTARY PUBLIC
My Commission Expires August 31,2 ` OMCMI PECOM
� u�J 'C`� IV
STATE OF
COUNTY OF
offfEFORE ME, the undersigned authority, a Not�a.�( Public in and for the State
l-� , on this day personally appeared G'� h C. r n ti 1400- r f ( for
TARRANT COUNTY CONCESSIONS, L.L.C., a Texas limited liability company known
to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that the same was the act of the Tarrant County Concessions,
L.L.C. and that he executed the same as the act of the said Tarrant County
Concessions, L.L.C, t ty
, for the purposes and consideration
therein expressed and in the capacity herein stated.
ftVEN UNDER MY HAND AND SEAL OF OFFICE, this / day of
2000.
NtPublic in and for ttotate of
JANIS M.JONES
WON{{�,�/P�.uubblic,State of Texas
MY CORIrtIIBS m E*res
�':•,g�:'�'' SEPTEMBER 25,2003
City of Fort Worth, Texas
4"11yor And Council communication
DATE REFERENCE NUMBER LOG NAME PAGE
8/1/00 C-18173 25HOST 1 of 3
SUBJECT RENEWAL, EXTENSION, AND CONSIDERATION OF AMENDMENT TO THE
CONTRACT WITH THE FINE HOST CORPORATION FOR CONCESSION SERVICES
AT THE FORT WORTH CONVENTION CENTER
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a three-year contract
with two one-year options for renewal, extension, and amendment of the original contract between the
Fine Host Corporation and the Commissioners Court of Tarrant County for concessions at the Fort
Worth/Tarrant County Convention Center, subject to the changes identified below.
DISCUSSION:
In 1994, the Commissioners Court of Tarrant County, acting through its County Judge, entered into a
contract with the Fine Host Corporation to provide food, beverage, and related concessions at the Fort
Worth/Tarrant County Convention Center.
On June 22, 1994, Fine Host Corporation assigned its rights, title and interest in the Concession
Contract, except Section 608 entitled INVESTMENT IN THE CENTER and Section 1102(3) entitled
PROCEDURE FOR TERMINATION AND REPOSSESSION to Tarrant County Concessions, L.L.C., a
Texas limited liability corporation.
On October 28, 1997, the City of Fort Worth purchased the Fort Worth/Tarrant County Convention
Center from Tarrant County and assumed all rights and obligations under the existing contract.
Concessions have been provided to the Convention Center under the terms of this contract since its
inception in 1994.
Section 1204, entitled "SECTION 1204. AMENDMENTS," provides for the amendment of the contract
by written contract if authorized and executed by representatives of all the parties.
Section 608 of the existing contract, entitled "SECTION 608. INVESTMENT IN THE CENTER,"
contains an investment clause wherein Fine Host Corporation invested $800,000 in equipment and
permanent improvements that were to be amortized over a ten-year period. Under the terms of the
contract, if the City or the Fine Host Corporation elects not to renew, the Fine Host Corporation will be
due, from the City, approximately $80,000 for each year remaining under the ten-year amortization
period which represents the unamortized portion of investment for the equipment and improvements.
City of Fort Worth, Texas
"agar and coun"K communication
DATE REFERENCE NUMBER LOG NAME PAGE
8/1/00 CA 8173 25HOST 2 of 3
SUBJECT RENEWAL, EXTENSION, AND CONSIDERATION OF AMENDMENT TO THE
CONTRACT WITH THE FINE HOST CORPORATION FOR CONCESSION SERVICES
AT THE FORT WORTH CONVENTION CENTER
The original contract allowed for the payment to Tarrant County of 42.5 percent of gross annual sales
up to $2,000,000 and 45.0 percent for annual sales in excess of $2,000,000. The amended contract
provides for payment to the City of 35.5 percent of gross sales up to $800,000 and 38.5 percent for
sales in excess of $800,000. The percentage decrease in the amended contract reflects the downturn
in arena business (i.e., hockey games and concerts) since the 1994 execution of this contract, and is
more in line with the current business standards. Based on Fort Worth Convention Center revenues
for 1999, it is estimated that the amount payable to the City will be reduced by approximately $63,000
per year due to the amended contract's reduction in percentage of gross sales on all basic concession
items.
The original contract between the Commissioners Court of Tarrant County and the Fine Host
Corporation was for six years beginning July 1, 1994 and ending June 30, 2000, with an option to
renew for one five-year period. It is the desire of the Public Events Department to extend this contract
for the amended term in order to maintain the present level of service to the facility.
Key Changes from Current Contract:
The primary term of the contract will be for three (3) years, from July 1, 2000 through June 30, 2003.
The City may extend, at its option, this contract for two (2) one-year terms upon approval of the City
Council.
The formula determination for the percentage of gross sales due the City changed from a gross sales
(gross sales less sales tax) amount of $2,000,000 to $800,000, with a percentage change of 42.5
percent to 35.5 percent. For gross sales (gross sales less sales tax) in the amount of $800,001 or
more, the percentage change is from 45.0 percent to 38.5 percent.
The flat fee of twelve (12) percent of gross receipts paid to the City when the concessionaire operates
as a caterer may be changed to any other percent as approved by the Fort Worth City Council.
However, there will be no percentage increase until the date of the opening of the new ballroom.
r
City of Fort Worth, Texas
"affor and council communication
DATE REFERENCE NUMBER LOG NAME PAGE
8/1/00 C-18173 25HOST 3 of 3
SUBJECT RENEWAL, EXTENSION, AND CONSIDERATION OF AMENDMENT TO THE
CONTRACT WITH THE FINE HOST CORPORATION FOR CONCESSION SERVICES
AT THE FORT WORTH CONVENTION CENTER
FISCAL INFORMATION/CERTIFICATION:
The Public Events Department will be responsible for collection of funds due the City under this
agreement.
E MG:k
F
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to) APPROVED
Mike Groomer 6140 GG01 443373 0252000 CITY COUNCIL
P Originating Department Head:
AUG 1 2000
Kirk Slaughter 8151 (from)
Additional Information Contact: City secretary of the
City of,ort wortk Texas
4
Sarah Fullenwider 7619
W