2012-28037 Reso RESOLUTION NO! 2012 -28037
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, REJECTING THE SOLE
PROPOSAL SUBMITTED IN RESPONSE TO REQUEST FOR
PROPOSALS NO. 37- 11/12, FOR THE MANAGEMENT AND
OPERATION OF FOOD AND BEVERAGE CONCESSIONS IN
- PARK PARK POOL AND NORMANDY ISLE PARK POOL (THE
RFP).
WHEREAS, on March 21, 2012 the City Commission approved the issuance of
Request for Proposals for the management and operation of food and beverage
concessions in Flamingo Park pool and Normandy Isle Park pool; and
WHEREAS, RFP No. 37 -11/12 for the management and operation of food and
beverage concessions in Flamingo Park pool and Normandy Isle Park pool was issued
on July 10, 2012, with a deadline for receipt of proposals of August 3, 2012; and
WHEREAS,. BidNet issued bid notices to 23 prospective proposers, and
additional proposers were notified via e-mail by the Procurement Division; and
WHEREAS, on August 10, 2012, only one (1) responsive proposal was received
in response to the RFP, from Blissberry, LLC (hereinafter Blissberry or Proposer); and
WHEREAS, Blissberry's proposal only involved the operation of the Flamingo
Park pool concession; and
WHEREAS, on August 30, 2012, an Evaluation Committee appointed by the
Interim City Manager, convened to evaluate the sole proposal; and
WHEREAS, during the Committee meeting, the Proposer was made aware of a
concurrent RFP process to operate the Tennis Center and new pro -shop facility located
in close proximity to the Flamingo Park Pool Concession which the Proposer deemed
could impact the concession operations; and
WHEREAS, discussion also focused on the challenges faced by the Proposer in
amortizing the costs of the necessary improvements to the concession facility, as well as
the limited initial term; and
WHEREAS, subsequent to the Evaluation Committee's meeting, Blissberry
informed the City of its reservations in proceeding in light of issues and concerns that
were raised during the meeting; and
WHEREAS, the Administration therefore recommends rejecting the sole proposal
received pursuant to Request for Proposals No. 37 -11/12 for the Management and
Operation of Food and Beverage Concessions in Flamingo Park Pool and Normandy
Park Pool (the RFP); and
WHEREAS, the Administration will conduct an Industry Review pro_ cess in order 3
to develop feasible terms and conditions prior to issuing a new RFP.
NOW THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH hereby reject the sole proposal
submitted in response to Request for Proposals No 37 -11/12 for the management and
operation of the food and beverage concessions in Flamingo Park Pool and Normandy
Isle Pool (the RFP).
PASSED and ADOPTED this 24 day of October, 2012
ATTEST: O
I NCORP 0 I� Jorge R. Exposito
RATEfl.. Vice -Mayor
CIT '� 26
T:\NGENDM2012 \10 -24 -12 \RFP 37 -11 -12 Pool Concessions Rejection Reso.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
ZL
(� 1
ity r ey ate
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Rejecting The Sole Proposal
Submitted In Response To Request For Proposals No. 37- 11/12, For The Management And Operation Of Food And
Beverage Concessions In Flamingo Park Pool And Normandy Isle Park Pool The RFP).
Key Intended Outcome Supported:
Increase resident satisfaction with the level of services and facilities.
Supporting Data (Surveys, Environmental Scan, etc.) According to the 2012 Survey, residents reported visiting
various cultural and recreational venues including parks and beaches more frequently in 2012 than in 2009. The typical
resident visited City parks and recreational facilities 58 times and went the beach 67, times in 2012, supporting the need
for concession operations in these areas.
Issue:
Shall the Mayor and City Commission adopt the resolution?
Item Summa /Recommendation:
On July 10, 2012, pursuant to the approval of the City Commission, RFP No. 37 -11/12 was issued for the management
and operation of food and beverage concessions in Flamingo Park pool and Normandy Isle Park pool, with a deadline for
receipt of proposals of August 10, 2012. Only one (1) responsive proposal was submitted in response to the RFP, from
Blissberry, LLC. a privately held company established in Miami Beach since 2006 (Blissberry or Proposer). The proposal
was only to operate the Flamingo Park pool concession.
On August 30, 2012, an Evaluation Committee appointed by the Interim City Manager convened to evaluate the sole
proposal. Following a presentation -by the proposer, the Committee proceeded to deliberate and evaluate the proposal
according to the criteria as set forth in the RFP, recommending unanimously to enter into negotiations with Blissberry for
the management and operation of the Flamingo Park pool concession.
Subsequent to the Evaluation Committee's meeting, Blissberry informed the City of its reservations in proceeding based
on the terms it had proposed, given .certain issues and concerns that the Proposer was made aware of during the
meeting, including a concurrent RFP process to operate the Tennis Center and new pro -shop facility located in close
proximity to the Flamingo Park Pool Concession stand which is anticipated to be in operation in May, 2013, as well as
potential challenges in amortizing its anticipated build -out and start-up costs, given that the initial term of the contract is
only for two years. -- .
Based on the circumstances, the Administration recommends that the Mayor and the City Commission reject the sole
proposal received pursuant to Request for Proposals No. 37 -11/12 for the Management and Operation of Food and
Beverage Concessions in Flamingo Park Pool and Normandy Park Pool (the RFP). The Administration will conduct an
Industry Review process in order to develop feasible terms and conditions prior to re-issuing the RFP.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds:
Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Anna Parekh ext. 6471
Sign-Offs:
Departmen Director Acting sistant C' ger T Interim Ci anager
AP MA PDW KGB
TA AGENDA\201 \10 -24 -12 \RFP 37 -11 -12 Pool Conces ns R jection Summary.doc
M
IAMIBEACH' AGENDA ITEM 6 7I
NW DATE
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 G. Brooks, Interim City Manager
DATE: October 24, 2012
'SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, REJECTING THE SOLE PROPOSAL SUBMITTED IN
RESPONSE TO REQUEST FOR PROPOSALS - NO. 37- 11/12, FOR THE
MANAGEMENT AND OPERATION OF FOOD AND BEVERAGE CONCESSIONS IN
FLAMINGO PARK POOL AND NORMANDY ISLE PARK POOL (THE RFP)
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME
Increase Resident satisfaction with level of services and facilities.
BACKGROUND
On March 21, 2012 the City Commission approved the issuance of Request for Proposals
(RFP) for the. management and operation of food and.beverage concessions in Flamingo Park
pool and Normandy Isle Park pool.
The intent of the RFP was to grant to the successful Proposer the exclusive right, during the
term of the agreement, to manage and operate food and beverage concessions at one or both
of the existing concession facilities in the following City Parks:
Park Address /Location Existing Concession Facility
Normandy Isle Park Pool 7030 Trouville Esplanade Permanent 9X9 concrete structure
Flamingo Park Jefferson Ave & 11 Street Permanent 9X9 concrete structure
The two (2) concession facilities identified above were being made available in their present "AS
IS" "WHERE IS" condition. Proposals involving one or both of these concession facilities were to
include -a detailed estimate of all interior and exterior improvements to the concession facilities
reasonably necessary for the successful Proposer(s) to operate such facilities for the intended
uses defined in the RFP. It should further be noted that. all such improvements to the
concession facilities were expected to be performed at the sole cost and expense of the
successful Proposer.
The successful Proposer(s) would have been authorized to provide, prepare, and /or sell the
following in the Concession areas:
• Non - alcoholic beverages,
• Prepared and /or pre - packaged foods,
October 24, 2012
City Commission Memorandum
RFP 37 -11112 - Pool Concessions
Page 2 of 4
• Sundries, generally including, but not limited to sun care products, hats, swim
goggles, fins and floatation equipment
Proposers were also advised of the City's Exclusive Non - alcoholic Beverage Agreement with
Coca -Cola Refreshments USA, requiring at all times that Proposers sell Coca -Cola beverage
products, and price such products of similar type and /or volume in a manner equal or greater to
the pricing of the Coca -Cola vending machine products. Proposers were also informed of the
City's Agreement with Bettoli Trading Corp. for the sale of snacks and ice cream at various
locations throughout the City. Proposers were informed that their items could not be sold at a
lower price than similar items sold in vending machines contracted by the City.
Proposers were also informed that should the City enter into any exclusive endorsement and /or
sponsorship agreement for products sold, rented, distributed, or otherwise used by the
Concessionaire, then Concessionaire shall be required to sell, rent, distribute, or use only the
products under the City's exclusive endorsement and /or sponsorship agreement, and may not
sell, rent, distribute, or otherwise use products produced by the City's exclusive sponsor's
competitors.
The RFP also contained the following parameters:
Term
Any agreement entered into by the City and a successful Proposer(s), would be for an initial
term of two (2) years with an option to renew for an additional three (3) one (1) year periods, at
the City's sole option and discretion, through its City Manager.
Percentage of Gross (PG):
The successful Proposer(s) would pay the City a percentage of the Proposer's gross receipts
(PG) of no less than 15 %.
Security Deposit:
Upon execution of the agreement, the successful Proposer would furnish the City with a
Security Deposit which would be the equivalent of no less than 15% of Proposer's projected
gross receipts for six (6) months of the first year of operation.
Request for Proposals Process
RFP No. 37 -11/12 was issued on July 10, 2012, with a deadline for receipt of proposals of
August 3, 2012. A pre - proposal conference to provide information to the proposers submitting a
response was held on July 20, 2012. Two addenda were issue to answer questions by
prospective proposers, hence postponing the deadline to August 10, 2012.
BidNet issued bid notices to 23 prospective proposers, and additional proposers were notified
via e-mail by the Procurement Division. The notices resulted in the receipt of only one (1)
responsive proposal from Blissberry, LLC. a privately held company established in Miami Beach
since 2006. The proposal was only to operate the Flamingo Park pool concession.
It should be noted that Blissberry currently operates the concession located in South Pointe
Park, which has been operating since 2010. As of the date of the receipt of proposals pursuant
October 24, 2012
City Commission Memorandum
RFP 37 -11112 - Pool Concessions
Page 3 of 4
to this RFP, Blissberry's sales for 2012 in the South Pointe concession were $84,809, which
exceeded the minimum guarantee of $9,000 annually for that contract.
On August 22, 2012, the Interim City Manager via Letter to Commission (LTC) No. 222 -2012,
appointed an Evaluation Committee (the "Committee ") consisting of the following individuals:
■ Manny Marquez, Revenue Manager, Finance Department
■ Mark Milisits, Leasing Specialist, Real- Estate, Housing, Community Development
■ Andrew Plotkin, Facility Manager, Parks and Recreation Department
■ Frankie Trullenque, Resident, CMB Leadership Academy Graduate
■ Tim Wilcox, Resident & Business Owner
The Committee convened on August 30, 2012 to evaluate the sole proposal received. The
Committee was provided with general information on the scope of services, and received a
presentation from Blissberry, LLC, followed by a question and answer session.
Blissberry proposed to operate the Flamingo Park pool concession only. Blissberry proposed to
pay the City a Minimum Guaranteed Annual Concession Fee of $4,500 ($375 /month), and a
15% percentage of gross receipts, whichever is greater.
Following the presentation, the Committee proceeded to deliberate and evaluate the proposal
according to the criteria as set forth in the RFP, recommending unanimously to enter into
negotiations with Blissberry, LLC for the management and operation of the Flamingo Park pool
concession.
ANALYSIS
During the Evaluation Committee meeting, Blissberry was informed of a concurrent RFP
process to operate the Tennis Center and new pro -shop facility located in close proximity to the
Flamingo Park Pool Concession stand, which is anticipated to be in operation in May, 2013.
Since the pro -shop facility is also expected to carry refreshments and snacks, Blissberry
expressed concerned over the potential competitive impact to its operating projections.
Discussion also focused on the challenges faced by the proposer in amortizing its anticipated
build -out and start-up costs, given that the initial term of the contract is only for two years, of
which at least three to four months would be dedicated to fixing up and rendering the space
operational. The Committee also inquired as to why the proposer had not considered including
the Normandy Pool concession in its submittal. The reasons included. the short seasonality of
the operation (limited to the summer months), the disappointing operating figures reported by
the current concessionaire and the location of the Coca -Cola and Bettoli vending machines,
coupled with the non - compete and Coca -Cola purchase requirements, all of which precluded
this location from consideration by the proposer.
Subsequent to the Evaluation Committee's meeting, Blissberry informed the City of its
reservations in proceeding based on the terms it had proposed, given the issues and concerns
that were raised during the meeting.
October 24, 2012
City Commission Memorandum
RFP 37 -11112 - Pool Concessions
Page 4 of 4
CONCLUSION
Based on the foregoing information, the Administration recommends that the Mayor and the City
Commission reject the sole proposal received pursuant to Request for Proposals No. 37 -11/12
for the Management and Operation of Food and Beverage Concessions in Flamingo Park Pool
and Normandy Park Pool (the RFP). The Administration will conduct an Industry Review
process in order to develop feasible terms and conditions prior to re- issuing the RFP.
KGB / aP /KOB
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