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Anaheim, CA 92802
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CITY COUNCIL AGENDA REPORT
City of Anaheim
CONVENTION, SPORTS & ENTERTAINMENT
DEPARTMENT
DATE: MAY 17, 2022
FROM: CONVENTION, SPORTS & ENTERTAINMENT DEPARTMENT
SUBJECT: FIRST AMENDMENT TO THE 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 # 02
RECOMMENDATION:
That the City Council, by Motion, approve and authorize the Executive Director of Convention, Sports & Entertainment to execute the First Amendment to the Concessions Agreement by and between Aramark Sports and Entertainment Services, LLC (Aramark) and the City of Anaheim (City), for food and beverage operations to modify the available three optional one-year extension periods to one collective three-year renewal period to extend the Agreement through December 31, 2025, add a 12-month notice of termination without cause provision, and reduce the annual Base Management Fee payable by the City to Aramark by $294,000 annually and establish the new annual minimum Base Management Fee payable during the extension period to be either the lesser of (a) Two Percent (2.00%) of Gross Receipts per year, or (b) $356,000 per year.
DISCUSSION:
The City has enjoyed a decades long and successful relationship with Aramark for the exclusive management of the food and beverage operation at the Anaheim Convention Center (ACC). They have also represented the ACC and gained national acclaim for their sustainability efforts and played a large role in our Gold LEED certification.
Additionally, over the length of their partnership with the City, Aramark’s community service efforts have provided over 30 tons of food product for local, not-for-profit entities.
In 2015, the City of Anaheim completed a Request for Proposal (RFP) for exclusive food and beverage services at the ACC and as a result of this effort, City Council awarded a seven-year Agreement, with three one-year extensions, to Aramark. The current management fee agreement allows for net revenues from the food and beverage operation at the ACC to be retained by the City, to help offset operating costs, and the City pays Aramark a management fee for managing these services.
First Amendment between Aramark Sports and Entertainment Services, LLC and the City of Anaheim May 17, 2022
Convention Center management determined that it was in the City’s and ACC’s best interest to combine the three optional one-year available renewals into one collective three-year term extending the Agreement through December 31, 2025. The proposed Amendment also contains a 12-month notice of termination without cause provision.
The First Amendment also reduces the Base Management Fee payable by the City to Aramark by $294,000 annually and establishes the new annual minimum Base Management Fee payable during the extension period to be either the lesser of (a) Two Percent (2.00%) of Gross Receipts per year, or (b) $356,000 per year. All other terms of the Agreement remain unchanged.
IMPACT ON BUDGET:
Sufficient funds are available in the Convention Center’s FY 21/22 Enterprise Fund budget. Funding for subsequent years will be subject to Council’s approval of budget appropriations.
Respectfully submitted,
Tom Morton, Executive Director
Convention, Sports & Entertainment Department
Attachments:
1. First Amendment
2. Agreement