HomeMy WebLinkAboutContract 31742-A3 CITY SECRETARY
CONTRACT NO. 31112—L3
THIRD AMENDMENT TO CITY SECRETARY
CONTRACT NO. 31742,A CONTRACT FOR EXCLUSIVE FOOD,BEVERAGE AND
ALCOHOLIC BEVERAGE SERVICES WITH OMNI HOTELS MANAGEMENT
CORPORATION
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Tt ��tvtThis Third Amendment to City Secretary Contract Number 31742("Third Amendment") is by
and between the City of Fort Worth,a home-rule municipality of the State of Texas,acting by and through
its duly authorized Assistant City Manager, and Omni Fort Worth Partnership, L.P. ("Omni"), a limited
partnership organized and existing under the laws of the State of Delaware to provide food, beverage,
alcoholic beverage, and related concession and catering operations at the Fort Worth Convention Center
("Center")acting by and through its duly authorized representative.
WHEREAS, City and Omni are parties to City Secretary Contract ("CSC") Number 31742, a
contract under which the Omni provides food,beverage and alcoholic beverage and related concession and
catering services at the Center;
WHEREAS, the parties amended CSC Number 31742 to revise the start date of the term to
December 1, 2008,the same being CSC Number 37798 ("First Amendment");
WHEREAS, the parties amended CSC Number 31742 a second time to permit buyouts in certain
situations and revise the concession rental payments to more accurately reflect the intent of the parties,the
same being CSC Number 31742-A2 ("Second Amendment")(CSC Numbers 31742,37798, and 31742-A2
are collectively referred to herein as the"Contract");
WHEREAS, effective January 1, 2013, Omni Hotels Management Corporation granted, sold,
transferred, and assigned all of its right, title, and interest in and to the Contract to Omni Fort Worth
Partnership, L.P., , which has been represented to the City as an affiliate of Omni Hotels Management
Corporation;
WHEREAS, the Contract is set to expire November 30, 2018, and the parties desire to extend the
primary term of the Contract for an additional ten years, with two renewal options of five years each;
WHEREAS, the parties also desire, among other things, to increase the percentage of Gross
Receipts to be paid to the City from Catering Services from 20% to 28%; and
NOW,THEREFORE, in consideration of the mutual covenants herein expressed,the parties agree
as follows:
I.
AMENDMENTS
1. Section 2.01, "Term of Contract", is hereby amended in its entirety to extend the term of
the Contract an additional 10 years, with two renewal options of five years each. Section 2.01 of
the Contract is amended to read as follows:
"SECTION 2.01. TERM OF CONTRACT. The primary term of this Contract
will be for a period of twenty yearFbeginnilngn Decem r 1, 2008 and expiring
RECORD
Third Amendment to CSC 31742 RETARY I ofs
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on November 30,2028("Primary Term"),subject to early terminated as provided
in the Contract. The City and Omni may,by written mutual consent,elect to extend
the term of this Contract under the same terms and conditions for two additional
five(5)year periods(each a"Renewal Term"). Notification of intent to extend the
Contract shall be given in writing to the other party at least 60 calendar days prior
to the expiration of the Primary Term or the first Renewal Term,where applicable.
There will be no second Renewal Term if the first Renewal Term is not exercised.
Upon expiration of the Primary Term or Renewal Term, as applicable, or earlier
termination by the City, Omni agrees to hold over under the terms and conditions
of this Contract for such period of time as it reasonably necessary to obtain a
replacement concessionaire, provided such period shall not exceed 90 days."
2. Section 3.01,"Concession Rental"is amended to increase the percentage of Gross Receipts
that Omni pays to the City for Catering Services from 20%to 28%and shall read as follows:
"3.01 CONCESSION RENTAL. For the rights and privileges granted, Omni
shall pay the City, through its Director, each month during the term hereof, the
following amounts:
(A)Thirty-six percent (36%) of Gross Receipts from the sale of all basic
concession items, including, but not limited to, all soft drinks, beer,
alcoholic beverages, peanuts, cotton candy, chips, doughnuts,
hamburgers, pretzels, sandwiches,hot dogs,chili dogs,coffee,barbecue
and pizza.
(B) When Omni provides Catering Services,a flat fee of twenty-eight percent
(28%) of Gross Receipts will be paid to the City. When operating as a
caterer providing alcoholic beverages, the fee as to those alcoholic
beverages will remain at established concession rates.
(C)Fifty percent (50%) of Gross Receipts from any Concession Services
provided by Third-Party Vendors. All Third-Party Vendors must be
approved,in writing,by the Director or that person's authorized designee
prior to providing any Concession Services at the Center.
The City agrees to meet periodically with Omni at Omni's request to discuss
new concession, food and beverage items to be provided at the Center and
proposed improvements to the Concession Premises. If deemed appropriate
by the City and Omni, the percentages in this Section 3.01 may be
renegotiated as a result of the new items or improvements proposed by Omni,
in which event the parties will execute an amendment to this Contract
modifying such amounts."
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3. Section 5.03, "Personnel", is amended to include the City in the selection process for
general managers concerning Omni's operations under this Contract and shall read as follows:
"(A) Omni shall be entitled to employ such employees on the premises as are
necessary to perform the services required of it hereunder.
(B) Omni agrees to employ, train, and supervise personnel with appropriate
qualifications and experience and in sufficient number to provide all of the services
appropriate for the concessions granted herein with a minimum delay for the
patrons. Omni must abide by all federal, state, and local laws, rules, and
regulations concerning the hiring, training, and employment of its employees.
Employees must be clean,neat,courteous,efficient,properly trained,and attendant
to patrons of the facilities. Employees must be attired in clean uniforms at all times
when the facility is open to patrons and must wear a badge with the employee's
name or number legibly imprinted. In any event, the uniforms and identification
badges will be consistent with the standards set in the industry and will be
reasonably priced given the nature and quality of the event or attraction.
(C) Within thirty (30) calendar days after the execution of this Third
Amendment by all parties, Omni must provide the Director with an updated and
current organizational chart, as it concerns Omni's operations under this Contract,
reflecting staffing levels and positions. Omni,with the written consent of the City,
which will not be unreasonably withheld, may reduce the staffing levels and
number of positions if it makes reasonable business sense to do so, but such
reduction will only be permitted if it does not cause any decrease in the level of
service required of Omni under this Contract.
(D) Omni and the City will mutually agree to the process governing selection
of the position that is responsible for overseeing the operations under this Contract,
including, but not limited to, a general manager or equivalent position or title.
Omni agrees than any person selected for the position that is responsible for
overseeing the operations under this Contract will be qualified to perform any and
all responsibilities required herein to the highest quality industry standards.
4. Section XII, "Miscellaneous Provisions" is amended to add Section 12.13 to
address statutory requirements under Chapter 2270 of the Texas Government Code
concerning the boycott of Israel. Section 12.13 will read as follows:
"SECTION 12.13 BOYCOTT. Omni acknowledges that in accordance with
Chapter 2270 of the Texas Government Code,the City is prohibited from entering
into a contract with a company for goods or services unless the contract contains a
written verification from the company that it: (1) does not boycott Israel; and (2)
Third Amendment to CSC 31742 3 of 5
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will not boycott Israel during the term of the contract. The terms"boycott Israel"
and"company"shall have the meanings ascribed to those terms in Section 808.001
of the Texas Government Code. By signing this contract, Omni certifies that
Omni's signature provides written verification to the City that Omni: (I) does
not boycott Israel, and (2) will not boycott Israel during the term of this
Contract."
H.
MISCELLANEOUS
1. All terms and conditions of the Contract not addressed herein remain in full force and effect
and are binding upon the parties.
2. All terms in this Third Amendment that are capitalized but not defined shall have the
meanings assigned to them in the Contract.
IN WITNESS WHEREOF,the City and Omni have caused this Third Amendment to be executed
and delivered by their duly authorized representatives in Fort Worth,Tarrant County, Texas on day
of 2018.
CITY OF FORT WORTH OMNI FORT WORTH PARTNERSHIP,L.P.
By: By: Omni Fort Worth GP Corporation
`S11 an Alanis Its: General Partner
Assistant City Manager
APPROVAL MMENDED: B
JName
Title: "'-
By: T
Kirk Slaughter
Director of Public Events
APPROVED AS TO FORM
AND LEGALITY:
Tylera ac
Assistant C' orney
ATTEST:
OFFICIAL RECORD
CITY SECRETARY
Third Amendment to CSC 31742 4 of 5
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City Secretary j
Contract Compliance Manag c�
By signing, I acknowledge that I a P responsible
for the monitoring and administration o t s contract, including
ensurin 1 performance and repo ing requirements.
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Title: Atji U A55 1,5 f D I M
Authorization:
M&C Numbers: C-20619 (April 27, 2005); C-22985 (August 26, 2008); C-28078 (January 24, 2017); C-
28775 (August 7,2018)
Form 1295:2018-351605
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
Third Amendment to CSC 31742 5 of 5
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FmH
COUNCIL ACTION: Approved As Amended on 8/7/2018
DATE: 8/7/2018 REFERENCE **C-28775 LOG NAME: 250MNICATERINGAMEND2018
NO..
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Third Amendment to City Secretary Contract No. 31472 31742, an Agreement
with Omni Fort Worth Partnership, L.P., for Exclusive Food, Beverage and Alcoholic
Beverage Services at the Fort Worth Convention Center, to Extend the Term and
Increase the Percentage of Gross Receipts Payable to the City for Catering Services
(COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Third Amendment to City
Secretary Contract Number 31472 31742, an Agreement with Omni Fort Worth Partnership, L.P., for
exclusive food, beverage and alcoholic beverage services at the Fort Worth Convention Center to:
1. Extend the term of the Agreement an additional ten years, to expire on November 30, 2028 and
include two additional five year extensions; and
2. Increase the percentage of gross receipts payable to the City for catering services from 20 percent
to 28 percent.
DISCUSSION:
On April 27, 2005, the City and Omni Hotels Management Corporation (Omni Corp) entered into an
Agreement for exclusive food, beverage and alcoholic beverage services at the Fort Worth
Convention Center for a term of ten years to be effective six months after the Omni Fort Worth Hotel
opened for business (Agreement) (CSC No. 31742 31742). The Agreement was amended to revise
the term to be effective beginning on December 1, 2008 and expiring on November 30, 2018 (CSC
No. 37798). Effective January 1, 2013, Omni Hotels Management Corporation assigned the
Agreement to its affiliate, Omni Fort Worth Partnership, L.P. (Omni Partnership).
The City and the Fort Worth Convention Center attendees have been very pleased with the quality of
service provided by both Omni Corp and Omni Partnership during the Agreement. As a result, staff is
recommending that the term of the Agreement be extended an additional ten years, such that it
expires on November 30, 2028 and, further, that it include two optional renewal periods of five years
each.
Staff also recommends increasing the catering commission payable to the City from 20 percent to 28
percent of gross receipts. It is anticipated that this may increase revenues to the City in an estimated
amount of$400,000.00-$500,000.00 per year, based upon revenues generated over the past three
years.
The Fort Worth Convention Center is located in COUNCIL DISTRICT 9 and serves the entire City.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that there will be not be a negative impact to the Fiscal Year 2018
budget of the Public Events Department upon approval. The Public Events Department is
http://apps.cfwnet.org/council_packet/mc review.asp?ID=25905&councildate=8/7/2018 9/24/2018
M&C Review Page 2 of 2
responsible for the collection of funds due the City under this Agreement.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
FROM
Fund Department Account Project I Program Activity Budget Reference# Amount
ID I I ID I Year Chartfield 2
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Kirk Slaughter(2501)
Additional Information Contact: Andrea Wright(2502)
ATTACHMENTS
Form 1295 Omni.pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=25905&councildate=8/7/2018 9/24/2018
CERTIFICATE OF INTERESTED PARTIES
FORM 3.295
1of1
Complete Nos,1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos,1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business. 2018-351605
Omni Hotels Management Corporation
Dallas,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 05/10/2018
being filed.
The City of Fort Worth,Texas Date Acknowled ed
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a
description of the services,goods,or other property to be provided under the contract.
31742
Food and Beverage provider at the Fort Worth Convention Center
Nature of interest
4
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling Intermediary
5 Check only if there is NO Interested Party.
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6 UNSWORN DECLARATION
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My name is and my date of birth is ) /�
My address is !���Q�( _ V c �( r7` ALf� 7;y1p !j LJ
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(street) (city) (state) (zip code) (country)
I declare under penalty of perjury that the foregoing is true and correct,
Executed in�`� -n.� County. State of on the day of 20_J4 .
(month) (year)
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�►'Aa�o,s SHERI GAIL HADDOCK
�=_Notary Public,State of Texas Signature of author' agent of contracting business entity
Comm. 0 -07-2021 (Declarant)
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