REPORT TO THE CITY COUNCIL
October 12, 2017
FROM: WILMA QUAN-SCHECTER, City Manager
BRUCE RUDD, Assistant City Manger
Office of the City Manager
BY: WILLIAM C. OVERFELT, General Manager, SMG
Fresno Convention & Entertainment Center
SUBJECT
Title
Approve the Second Amendment to the Catering Services Agreement between SMG and Pardini's Inc. for the Fresno Convention & Entertainment Center.
Body
RECOMMENDATION
Staff recommends that the City Council approve the Second Amendment to the Catering Services Agreement between SMG and Pardini's Inc. (Second Amendment) for the Fresno Convention & Entertainment Center (FCEC) and authorize the City Manager to execute the agreement.
EXECUTIVE SUMMARY
Pardini's Inc. (Pardini's), is a locally owned and operated catering company who has been providing catering services to FCEC and has done so for the past seventeen years via contracts with SMG. Pursuant to the Amended and Restated Management Agreement between the City of Fresno and SMG, dated January 1, 2014 (the Management Agreement), all subcontracts related to FCEC must be approved by the City. The Second Amendment would extend the Catering Agreement for five years, will generate additional commission revenues paid by Pardini's on catering sales, and provide the parties with an option to extend the Catering Agreement for an additional five years, if mutually agreeable terms can be reached.
BACKGROUND
Pardini's, Inc. has been the catering services provider at FCEC for the past seventeen years. The current term was nearing expiration at which point the City engaged Pardini's and SMG in negotiating mutually agreeable terms for a Second Amendment to the current Catering Agreement.
Pursuant to the terms of the Catering Agreement, as amended, the parties have the option of extending the agreement for a five-year period upon mutually agreeable terms. As a result of these negotiations the parties have now reached a tentative agreement and seek Co...
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