Title
Consider a memorandum/resolution awarding RFP#25-10, Killeen Civic and Conference Center Mixed Beverage Service to Let Us Do the Cooking, in the amount of $105,000 annually.
Body
DATE: March 4, 2024
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: Management Services Agreement for Mixed Beverage Service Operations
BACKGROUND AND FINDINGS:
The City of Killeen holds a mixed beverage license from the Texas Alcoholic Beverage Commission (TABC) for the Killeen Civic and Conference Center Complex to provide alcoholic beverage services for its clients. The license includes the Killeen Civic and Conference Center, Special Events Center and Rodeo Arena and Grounds. The city obtained Mixed Beverage and Beverage Cartage permits in April 2005, and added a catering permit in 2011 in order to provide mixed beverage service to other authorized City facilities.
The city has maintained a management agreement with Let Us Do the Cooking LLC., for several years. The current management agreement expires March 12, 2025.
City staff hosted a pre-proposal meeting in February 2025, which was attended by two entities. The RFP closed on January 22, 2025, with two proposals received: AyeBartender and Let Us Do the Cooking, LLC.
In February 2025, staff met with both proposers and evaluated their proposals based on the criteria outlined in the RFP. After careful consideration, staff selected Let Us Do the Cooking, LLC. Their proposal included several new services that have the potential to generate additional revenue for the city.
As part of this selection, staff is proposing a three-year management services agreement. If both parties agree, the agreement may be extended for up to two (2) additional two-year terms.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
Staff recommends approval of the management services agreement to provide (1) a continued mixed beverage service to customers, (2) an enhanced level of service of mixed beverage services, and (3) provide additional services that will enhance customer service options and potential revenue for the City.
CONFORMITY TO CITY POLICY:
Yes
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
Annually the City has budgeted $105,000 for the management fee for mixed beverage service.
Is this a one-time or recurring revenue/expenditure?
This is a recurring expenditure.
Is this revenue/expenditure budgeted?
Yes, this expenditure is budgeted in 214-54250-500-540-000000.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
Staff recommends City Council awarding RFP#25-10, Killeen Civic and Conference Center Mixed Beverage Service to Let Us Do the Cooking in the amount of $105,000 annually, and authorize the City Manager, or designee, to execute any and all change orders within the amounts set by State and Local Law.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
RFP Response
Agreement
Presentation