2012-27997 Reso RESOLUTION NO. 2012-27997
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE AT ITS MAY 179 2012
MEETING TO EXTEND, ON A MONTH-TO-MONTH BASIS, THE
MANAGEMENT AND OPERATING AGREEMENTS BETWEEN THE CITY AND
THE MARKET COMPANY FOR THE OPERATION OF THE GREEN MARKETS
ON LINCOLN ROAD AND NORMANDY ISLE AND BETWEEN THE CITY AND
PRODUCTION SUD, INC., FOR THE OPERATION OF THE ANTIQUE AND
COLLECTIBLES MARKET ON LINCOLN ROAD, FOR A PERIOD NOT TO
EXCEED EIGHT (8) MONTHS, COMMENCING ON OCTOBER 1, 2012 AND
ENDING NO LATER THAN MAY 31,2013;AND, AUTHORIZING THE CITY TO
PROCEED IN PREPARING AND ISSUING A REQUEST FOR PROPOSALS
(RFP)FOR THE MANAGEMENT AND OPERATION OF STREET MARKETS IN
MIAMI BEACH AT VARIOUS LOCATIONS.
WHEREAS, On September 6, 2006, the Mayor and City Commission adopted Resolution
No. 2006-26281, awarding, pursuant to RFP 30-05/06,the operation and management of the Green
Markets on Lincoln Road, Espanola Way and Normandy Isle to The Market Company, Inc., and the
operation and management for the Antique and Collectibles Market on Lincoln Road to Production
Sud, Inc., (hereinafter referred to collectively as "Markets"); and
WHEREAS,the City entered into four(4)separate Management and Operating Agreements
(`Agreements"), governing each of the Markets, respectively, commencing on October 1, 2006
and terminating on September 9, 2009; and
WHEREAS, the Agreements provided for an extension of the respective terms for an
additional three (3) years, which was approved by the City on July 1St, 2009; and
WHEREAS, with no additional renewal options remaining and the current terms are set to
expire on September 30, 2012; and
WHEREAS, at the May 17, 2012, meeting of the Finance and Citywide Projects Committee
(FCWPC), the FCWPC recommended to initiate a new Request for Proposals (RFP) process to
solicit interest in managing and operating street markets on Lincoln Road, Normandy Village and in
a suitable location around the Collins Park area; and,
WHEREAS, the FCWPC also recommended expanding the scope of the RFP to include
other areas of the City, provided however,the locations involved have the support of the respective
neighborhood and/or neighborhood association, do not interfere with traffic circulation and parking
and don't pose any life-safety and/other code-related problems; and
WHEREAS, the FCWPC further recommended that in order to fully explore all options in
developing a proper scope for the RFP and so as not to cause an interruption in schedule for the
Markets, to extend the existing Agreements with The Market Company and Production Sud on a
month-to-month basis, until such time as the Administration was prepared to proceed with an RFP
process; and
T:\AGENDA\2012\9-12-12\Market Agreements Extension-Reso.doc
WHEREAS, subsequent to the May 17, 2012 meeting of the FCWPC, concern was
expressed over the timing of the RFP process and the possible conflict involved due to the lead time
required in booking vendors for the Markets, which on account of the seasonality and timing of the
larger market circuit calendar, typically occurs at least six months ahead of season; and
WHEREAS, staff therefore further recommends extending the existing Agreements with The
Market Company and Production Sud on a month-to-month basis, for a period not to exceed eight
(8) months, commencing on October 1, 2012 and ending no later than May 31, 2013; and to further
coincide the issuance of the RFP and the ensuing selection process as close as possible to this
schedule, so as to minimize potential booking conflicts between with the Market Operators and their
vendors.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission, hereby accept the
recommendation of the Finance and Citywide Projects Committee at its May 17, 2012 meeting to
extend, on a month-to-month basis,the Management and Operating Agreements between the City
and The Market Company, Inc., for the operation of the Green Markets on Lincoln Road and
Normandy Isle and between the City and Production Sud, Inc.,for the operation of the Antique and
Collectibles Market on Lincoln Road, for a period not to exceed eight (8) months, commencing on
October 1, 2012 and ending no later than May 31, 2013; and, authorizing the Administration to
proceed in preparing and issuing a Request for Proposals(RFP)for the Management and Operation
of Street Markets in Miami Beach at various locations.
PASSED and ADOPTED this 12th day of 5e 't; 2012.
ATTEST:
Matti H rr e ra Bower, Mayor
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T:\AGENDA\2012\9-12-12\Market Agreements Extension-Reso.doc
1
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution extending, on a month-to-month basis, the Management and Operating Agreements between the City and The
Market Company, Inc., for the operation of the Green Markets on Lincoln Road and Normandy Isle and between the City and
Production Sud, Inc., for the operation of the Antique and Collectibles Market on Lincoln Road, for a period not to exceed
eight (8) months, commencing on October 1, 2012 and ending May 31, 2013; and, authorizing the Administration to proceed
in preparing and issuing a Request for Proposals(RFP)for the Management and Operation of Street Markets in Miami Beach
at various locations.
Key Intended Outcome Supported:
Increase satisfaction with recreational programs.
Supporting Data (Surveys, Environmental Scan, etc.):
Issue:
Whether the City Commission should approve an extension of the current Management and Operating Agreements and
further authorize the issuance of an RFP for the Management and Operation of Street Markets in Miami Beach at various
locations.
Item Summary/Recommendation:
On September 6, 2006, pursuant Resolution No. 2006-26281, the City entered into three (3) separate Management and
Operating Agreements with The Market Company, Inc., for the operation of the Green Markets on Lincoln Road, Espanola
Way and Normandy Isle. A separate Management and Operating Agreement was provided to Production Sud, Inc. for
operation of the Antique and Collectibles Market on Lincoln Road. All agreements commenced on October 1, 2006 and
terminated on September 9, 2009. On July 1, 2009, the City approved the sole renewal option provided for in the respective
Agreements, extending the terms for an additional three (3)years, which are now set to expire on September 30, 2012, with
no renewal options remaining. On May 17, 2012, the Finance and Citywide Projects Committee (FCWPC), recommended to
initiate a new Request for Proposals (RFP) process to solicit interest in managing and operating street markets on Lincoln
Road, Normandy Village and in a suitable location around the Collins Park area, as well as to expand the scope to include
other areas of the City. The FCWPC further recommended that in order to fully explore all options in developing a proper
scope for the RFP and so as not to cause an interruption in schedule for the Markets, to extend the existing Agreements with
The Market Company and Production Sud on a month-to-month basis, until such time the Administration was prepared to
proceed with an RFP process. Subsequent to the FCWPC meeting, concern was expressed over the timing of the RFP
process and the possible conflict involved due to the lead time required in booking vendors for the Markets, which on account
of the seasonality and timing of the larger market circuit calendar, typically occurs at least six months ahead of season. The
Administration therefore recommends extending the existing Agreements with The Market Company and Production Sud on a
month-to-month basis, for a period not to exceed eight (8) months, commencing on October 1, 2012 and ending May 31,
2013. Ideally,the issuance of the RFP and the ensuing selection process will be tied as close as possible to this schedule, so
as to minimize potential booking conflicts between with the Market Operators and their vendors.
Advisory Board Recommendation:
Finance & Citywide Projects Committee, May 17, 2012 - Actions noted above
Financial Information:
Source of Funds: Amount Account Approved
Total
OBPI
Financial Impact Summary: N/A
City Clerk's Office Legislative Tracking:
Anna Parekh, extension 6471
Sign-Offs: Department
Director Assistant Ci a r City Man r klit
AP MS KB
T:WGENDA\2012\09-12-12\Markets Agreement Extension-Sum.doc
AGENDA ITEM 7�
1W I AM I OB" E:AC H" DATE 12 la
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie Brooks, City Manager
DATE: September 12, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE AT THEIR MAY 179 2012 MEETING TO EXTEND ON A
MONTH-TO-MONTH BASIS THE MANAGEMENT AND OPERATING
AGREEMENTS BETWEEN THE CITY AND THE MARKET COMPANY
FOR THE OPERATION OF THE GREEN MARKETS ON LINCOLN
ROAD AND NORMANDY ISLE; AND THE MANAGEMENT AND
OPERATING AGREEMENT BETWEEN THE CITY AND PRODUCTION
SUD, INC., FOR THE OPERATION OF THE ANTIQUE AND
COLLECTIBLES MARKET ON LINCOLN ROAD, FOR A PERIOD NOT
TO EXCEED EIGHT (8) MONTHS, COMMENCING ON OCTOBER 1,
2012 AND ENDING MAY 319 2013; AND, AUTHORIZING THE CITY TO
PROCEED IN PREPARING AND ISSUING A REQUEST FOR
PROPOSALS (RFP) FOR THE MANAGEMENT AND OPERATION OF
STREET MARKETS IN MIAMI BEACH AT VARIOUS LOCATIONS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
KEY INTENDED OUTCOME SUPPORTED
Increase satisfaction with recreational programs
BACKGROUND
On September 6, 2006, the Mayor and City Commission adopted Resolution No. 2006-26281,
awarding, pursuant to RFP 30-05/06, the operation and management of the Green Markets on
Lincoln Road, Espanola Way and Normandy Isle to The Market Company, Inc., and the
operation and management for the Antique and Collectibles Market on Lincoln Road to
Production Sud, Inc.
The permitted uses for each market are as follows:
Lincoln Road Green Market: includes fruits, vegetables, juices, nuts and other related
products; plants and cut flowers;
Espanola Way Street Market: included arts and crafts; cut flowers and plants; fruits, juices,
nuts, and other related products;
September 12, 2012
Resolution Extending the Existing Market Agreements and
Authorizing the Issuance of an RFP for the Management
And Operation of Street Markets in Miami Beach.
Page 2 of 5
Normandy Village Street Market: includes arts and crafts; fruits, vegetables, cut flowers,
orchids and other related green market products; tropical fruit preserves, dressings, dried
fruits and nuts, honey and organic produce;
Antiques and Collectibles Market: includes antiques; vintage goods; and collectibles.
The City entered into four separate Management and Operating Agreements governing each of
the Markets, each commencing on October 1, 2006 and terminating on September 9, 2009.
The Agreements provided for an extension of the respective terms for an additional three (3)
years, which was approved by the City on July 1 st, 2009. It should be noted that shortly after the
renewal options were approved, the Espanola Way Market was closed due to lack of interest by
the vendors. With no additional renewal options remaining and the current terms set to expire
on September 30, 2012, the Administration seeks input on whether to initiate a new competitive
bid process to solicit interest in managing and operating street markets in multiple locations on
Miami Beach.
ANALYSIS
Since October 1, 2006, The Market Company has been operating its Green (Farmers) Markets
on Lincoln Road, Normandy Isle and until August, 2009, on Espanola Way. As noted above,
The Market Company's markets are generally engaged in the sale of cut flowers and plants,
fruits, vegetables and other edible products, including fresh fruits, dried fruits, vegetables, nuts,
preserves, pickled items, jams, jellies, juices, smoothies and other non-alcoholic beverages.
The "Green Market" concept was specifically adopted for Lincoln Road so as not to compete
with merchants in the area. During the same period, Production Sud has operated its Antiques
and Collectibles Market on Lincoln Road, engaging in the sale of antiques, vintage goods and
collectibles, including but not limited to, jewelry, bric-a-brac, reproductions, memorabilia, art,
and creative uses of recycled components. For allowing the Markets to operate in their
respective locations, the City receives rent equivalent to the greater of a fixed percentage of
concessionaire's gross receipts (PG) or an established minimum guarantee (MG) as follows:
-Rent Received -
Market: PG% MG FY 08/09 FY 09/10 FY 10/11
Lincoln Road Green 15.0% $ 8,820 $ 9,530 $10,338 $13,111
Mkt
Normandy Isle Mkt 15.0% $ 3,675 $ 4,213 $ 4,262 $ 4,258
Antiques & 12.5% $35,128 $29,450 $34,608
Collectibles Mkt $29,400
The City also receives certain additional rent from the Concessionaires to cover the cost of field
monitoring at $19.85/hour for a maximum of 2 hours per event; $100.00 paid in four equal
quarterly installments of $25.00 each to cover the cost of pressure cleaning; and $4.00 per
market day for each vendor that requires electrical service.
A summary of terms for each of the Markets is included as "Exhibit A"to this memorandum.
Lincoln Road Green Market
The Lincoln Road Green Market is held every Sunday on the Lincoln Road Mall from
Washington Avenue to Meridian Avenue with an average of 20 vendors; operating
between the hours of 9:00 a.m. until 6:30 p.m.
September 12, 2012
Resolution Extending the Existing Market Agreements and
Authorizing the Issuance of an RFP for the Management
And Operation of Street Markets in Miami Beach.
Page 3 of 5
As noted in the table above, the Lincoln Road Green Market has consistently exceeded
its annual MG remittal to the City and continues to be a viable event for both the
Concessionaire and the City. It should be noted however, that due to the significant
increase in the number of sidewalk cafe permits issued on Lincoln Road since the
inception of the Markets, there has been, on occasion, friction between the restaurants
and the Markets over the displacement of some of their vendors.
Normandy Village (Isle) Market
The Normandy Market operates every Saturday on Rue Vendome with an average of 13
vendors. The street is closed to traffic during the Market's operation. The Market
Company continues to manage and operate this market as it has over the past few years
with little change in vendors or emphasis. Although not a high profit return to the City,
this market is primarily frequented by the surrounding community.
Antiques & Collectibles Market
The Antiques & Collectibles Market, operated by Production Sud, is held on Sunday with
operating hours of 9:00 a.m. until 6:00 p.m. twice a month from October through May.
The Market currently operates on Lincoln Road between Meridian Avenue and Michigan
Avenue; Michigan Avenue between South Lincoln Lane and North Lincoln Lane; and the
west side of Jefferson Avenue, between South Lincoln Lane and North Lincoln Lane,
with an average of 128 vendors (+/-).
It should be noted that due to the renovations and modifications to the 1100 block of
Lincoln Road that were completed in November, 2009, the Antiques and Collectibles
Market was not permitted to return to the block, resulting in the loss of approximately 30
vendor locations. To compensate for the reduction in space, the Antiques & Collectibles
Market was allowed to expand from two rows to three rows of tents on Michigan Avenue.
Even so, the Market was reduced from approximately 130 spaces to 110 spaces,
resulting in a loss of revenues and requiring staff to explore various options to add the
spaces back without conflicting with the Lincoln Road Green Market and without creating
circulatory, parking and/or life-safety issues. In August, 2011, Staff was able to secure
the west side of Jefferson Avenue between South Lincoln Lane and North Lincoln Lane,
which was able to accommodate an additional 18 vendors. This new location has since
made up for the concessionaire's loss of the 1100 block.
Collins Park Market
On October 14, 2009, pursuant to a request from the Collins Park Neighborhood Association
(CPNA), the City Commission approved a temporary Management and Operating Agreement
with The Market Company to operate a farmer's market adjacent to Collins Park on a trial basis
for a period of one (1) year, commencing on January 1, 2010 and ending on December 31,
2010. The Market was located on 22nd Street between Collins Avenue_and Liberty Avenue,
which was not the location of choice for the CPNA or the Concessionaire, who would have
preferred a location in the Park itself. It should be noted that an exhaustive amount of time was
spent at a staff and Committee level in identifying and agreeing to the approved location for the
Market. The Park and the Central Boulevard located on the east side of Collins Avenue were
firmly ruled out due to a variety of concerns involving accessibility/ADA issues, maintenance-
related impacts, Historic Preservation issues, and parking and circulatory impediments. Staff
also looked at Park Avenue and Liberty Avenue as potential locations, but ruled them out, on
September 12, 2012
Resolution Extending the Existing Market Agreements and
Authorizing the Issuance of an RFP for the Management
And Operation of Street Markets in Miami Beach.
Page 4 of 5
account of their lack of visibility from public areas, which in effect would hide the market instead
of activating the Park. The 22"d Street location was deemed the most viable on account of its
high degree of visibility adjacent to the Park, the minimum impact to traffic circulation and the
minimal loss of parking spaces during market days.
The Collins Park Market started operations on January 3, 2010, and was scheduled to run every
Sunday from 9:00 a.m. to 6:00 p.m. However, the construction of Collins Park and surrounding
streetscape areas (including 22"d Street), had not been completed and was running behind
schedule. Also, abnormally cold and windy conditions prevailed in the area for most of the first
two months of operation, discouraging both pedestrian traffic as well as vendors from attending.
Furthermore, an inadequate power supply to provide electricity for some of the vendors resulted
in frequent electrical outages due to overloading of the circuits. For these reasons, The Market
Company elected to terminate its Agreement with the City on March 31, 2010.
It should be noted however, that despite The Market Company's experience with this location, it
is still determined to be the most viable and functional for the Collins Park neighborhood,
particularly since it is no longer subject to the mostly construction-related interruptions it was
affected by before. Furthermore, in light of the few restaurants in the area, no sidewalk cafes
and no local grocery store, a new market in this location could potentially be expanded to allow
for a broader spectrum of products to be sold, including, but not limited to, prepared foods, arts
and crafts, and the inclusion of live entertainment.
Also, while the electrical supply along this section of 22"d Street is still limited to Christmas tree
lighting outlets located atop the light poles along the north sidewalk, staff would recommend
allowing the use of quiet (whisper) generators by those vendors needing to operate electrical
equipment, such as blenders and toaster ovens. The agreements governing the Green Markets
currently preclude the use of generators so as to mitigate any chance of noise disturbances as
well as to minimize opportunities for vendors to engage in the production and sale of certain
prohibited items such as prepared foods. While this provision may still apply to future market
agreements involving Lincoln Road and Normandy Isle, an exception should be considered for
Collins Park.
Finance and Citywide Projects Committee Recommendation
At the May 17, 2012, meeting of the Finance and Citywide Projects Committee (FCWPC), the
Administration reported that the original intent of bringing the Markets to Miami Beach was to
establish an ancillary activity to attract new business for the merchants in the areas in which
they are located, particularly during the summer and off-season months. However, since the
number of vendors participating in the Green Markets is significantly reduced during the
summer and off-season and the Antiques and Collectibles Market only operates from October
through May, the Markets have not been a significant source of new business for area
merchants. On the other hand, they continue to be a popular draw on weekends for local area
residents and visitors and for which reason, the FCWPC concurred with the Administration's
recommendation to initiate a new Request for Proposals (RFP) process to solicit interest in
managing and operating street markets on Miami Beach in one or more of the four locations
identified above. The FCWPC also concurred with staff's recommendation to expand the scope
of the RFP to include other areas of the City, provided however, the locations involved have the
support of the respective neighborhood and/or neighborhood association, do not interfere with
traffic circulation and parking and don't pose any life-safety and/other code-related problems.
The FCWPC further recommended that in order to fully explore all options in developing a
proper scope for the RFP, and so as not to cause an interruption in schedule for the Markets, to
September 12, 2012
Resolution Extending the Existing Market Agreements and
Authorizing the Issuance of an RFP for the Management
And Operation of Street Markets in Miami Beach.
Page 5 of 5
extend the existing management agreements with The Market Company and Production Sud on
a month-to-month basis, until such time as the Administration was prepared to proceed with an
RFP process.
CONCLUSION
Subsequent to the May 17, 2012 meeting of the FCWPC, Production Sud expressed concern
over the timing of the RFP process, on account of the possible conflict in lead time involved in
booking vendors for the Antique and Collectibles Market. Typically, vendor contracts are
executed at least six to twelve months ahead of the Market's season, which starts in October.
Therefore and in accordance with the FCWPC's recommendation, the Administration
recommends extending the existing management agreements with The Market Company and
Production Sud on a month-to-month basis, for a period not to exceed eight (8) months,
commencing on October 1, 2012 and ending May 31, 2013. Ideally, the issuance of the RFP
and the ensuing selection process will be tied as close as possible to this schedule, so as to
minimize potential booking conflicts between with the Market Operators and their vendors.
KB\MS\AP\KOB
r
TAAGENDA\2012\9-12-12\Market Agreements Extension Mem.doc
Cc: Max Sklar, Assistant City Manager
Anna Parekh, Director REH&CD