REPORT TO THE CITY COUNCIL
FROM: RUTH F. QUINTO, CPA, Assistant City Manager
Office of the City Manager
MICHAEL ROGERS, Assistant City Manager
Office of the City Manager
THROUGH: BRIAN BARR, Director
General Services Department
BY: MELISSA PERALES, Purchasing Manager
General Services Department, Purchasing Division
SUBJECT
Title
Approve the award of a contract to provide catering and concession services to Pardini’s Inc. of Fresno, California, at the Fresno Convention and Entertainment Center for three years with two optional one-year extensions, and authorize the City Manager, or designee, to negotiate and execute the contract subject to approval as to form by the City Attorney’s Office (Bid file 12400335)
Body
RECOMMENDATION
Staff recommends Council approve the award of a contract to provide catering and concession services to Pardini’s Inc. of Fresno, California, at the Fresno Convention and Entertainment Center for three years with two optional one-year extensions, and authorize the City Manager, or designee, to negotiate and execute the contract subject to approval as to form by the City Attorney’s Office
EXECUTIVE SUMMARY
The General Services Department, Purchasing Division, solicited proposals through the Request for Proposals (RFP) process for catering and concession services at the Fresno Convention and Entertainment Center, which includes Selland Arena, Valdez Hall, Saroyan Theater, and the Convention Center. Pardini’s was selected based upon their diverse cuisines and ability to provide multiple types of cuisines simultaneously for multiple events held on the same day. They have over 200 staff members and have invested in mobile equipment to meet special event demand needs.
BACKGROUND
The Office of the City Manager is responsible for administering the services agreement for catering and concession services at the Fresno Convention and Entertainment Center. This includes Selland Area, Valdez Hall, Saroyan Theater, and the Convention Center.
The City seeks a food service contractor with the capability to provide catering and concession services for large conventions to small meetings and large public events to small private affairs. The Fresno Convention Center and Entertainment Center offers a variety of flexible spaces which requires a food service contractor with the ability to provide multiple types of cuisines at once. This is critical to the success and appeal of the Convention Center.
For catered events, the client will contract with and pay the food service contractor directly for the catering services provided at the event. The food service contractor will then remit to the Convention Center operator the portion of the proceeds that represents the City’s agreed-upon share of the proceeds as shown in the attached Exhibit A. These net proceeds will be reflected in the operator’s Annual Operating Budget as “ancillary income.”
For concessions, the contractor will be paid $5,500 per month directly from the Convention Center operator. The contractor will provide concession services. The contractor will then remit to the Convention Center operator the proceeds less 6.5% of the gross sales as a management incentive fee. These net proceeds will be reflected in the operator’s Annual Operating Budget as “ancillary income.”
The City’s net revenue to the Fresno Convention and Entertainment Center from catering and concessions is estimated at $500,000 annually.
The Request for Proposals was published on Planet Bids on April 25, 2024, and advertised in the Business Journal on May 3, 2024. Subsequently, there were 290 potential proposers notified by Planet Bids, five of which downloaded the RFP documents. Proposals were received from Pardini’s, Inc. and SMG Food and Beverage, LLC dba SAVOR by the May 16, 2024 deadline.
To evaluate the proposals, an Evaluation Committee was formed. The Committee was made up of staff from the City Manager’s Office, General Services Department, PARCS Department, and an external member who has former experience in arena/stadium management responsibilities with the University of Idaho, the University of Florida, and the City of Seattle. The Committee held an initial meeting on June 14, 2024. Proposals were evaluated based on the following criteria, as listed in the RFP:
1. Experience and past performance based on references and information provided.
2. Ability to meet the stated service requirements.
3. Conformance to the terms and conditions of the RFP.
4. Financial stability based on information provided.
5. Ability to prepare and provide a variety of culturally ethnic dishes for a diverse local community or list of caterers you will partner with to prepare and provide Hmong, Indian, Armenian, Mexican, Chinese, and Filipino, other cultural ethnic dishes on a large scale, this would include special meals to meet religious dietic needs.
6. Cost as shown on the proposal form.
7. Other related information.
Additionally, interviews were held with both proposers on June 17, 2024. At the conclusion of the interviews, the committee unanimously agreed that Pardini’s, Inc. offers the best value and fit for the City.
Pardini’s is the current food service vendor at the convention center. They demonstrated a thorough understanding of the City’s needs, provided a detailed and clear proposal, and showed strong local staffing and vendor partnerships. In their proposal, they demonstrated their ability to provide multiple types of cuisines simultaneously for multiple events held on the same day. Pardini’s demonstrated the ability to meet demand with over 200 staff members with equipment to support multiple events. This includes five mobile catering kitchens, two food specific concession trailers, three mobile refrigeration trucks, and tableware/buffet equipment for over 2,000 guests. No other proposer demonstrated the ability to support these needs with existing resources.
Pardini’s demonstrated the importance of accommodating different types of dietary preferences and restrictions, including food safety practices. They can prepare and provide ethnic cuisines from around the world. They recognize that some cultural groups appreciate the ability to use a third-party cater who specializes in in their cultural cuisine, such as Indian and Hmong cuisines. In these situations, Pardini’s will partner with the third-party vendor to provide the requested service.
Their cost proposal was more competitive and aligned with the City’s budget constraints. Additionally, Pardini’s will provide a 25% discount for all City of Fresno events and a 5% discount for food and non-alcoholic beverages for all Fresno residents.
The full committee evaluation of both proposers is attached to this report.
Staff recommends Council authorize the City Manager, or designee, to negotiate and execute the contract subject to approval as form by the City Attorney’s Office.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference was considered during the evaluation. Pardini’s Inc. is a local business as defined in the Fresno Municipal Code.
FISCAL IMPACT
The funding has been included in the department’s line-item budget as part of the FY2025 adopted budget to cover the cost of catering and concession services.
Attachments:
Proposal Evaluation and Committee Report
Exhibit A - Revenue and Cost Structure