Here is what I have and it does not work as of yet. (I had to replace all the angle brackets for square brackets to post it.)

    [ EditItemTemplate ]
           [ mm:mmLabel ID="lblTime" runat="server" Text=' [ %# DisplayLocalTime(Eval("Spot_Time"))%] ' ] [ /mm:mmLabel ]
    [ /EditItemTemplate ]

The method is:

  protected string DisplayLocalTime(Object value)
  {
       DateTime utcTime = (DateTime)value;
       DateTime localTime = utcTime.ToLocalTime();
       string displayTime = localTime.ToShortTimeString();

       return displayTime;
  }

I can set a breakpoint in the method and it never fires. If I can get the method to fire, then I can set the required local time per the data setting.
Tim