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LTC 286-2018 Request for Letters of Interest (RFLI) NO. 2018-185AM1BEACH OFFICE OF THE CITY MANAGER LTC# 286-2018 LETTER , 0 COMMISSION TO: Dan Gelber and Members of the Cit Commissi FROM: Jimmy L. Morales, City Manager DATE: May 18, 2018 SUBJECT: REQUEST FOR LETTERS OF INTEREST (RFLI) NO. 2018 -185 -WG CHRISTMAS TREE CONCESSIONAIRE The purpose of this Letter to Commission is to provide a status update regarding Request for Letters of Interest (RFLI) No. 2018 -185 -WG for Christmas Tree Concessionaire. At the September 25, 2017 City Commission meeting, pursuant to agenda item R9AE, the Mayor and City Commission directed staff to attempt to identify a Christmas tree concessionaire for the 2018 holiday season. Accordingly, the Administration issued Request for Letters of Interest (RFLI) 2018 -185 -WG for Christmas Tree Concessionaire seeking responses from firms or non- profit organizations interested in operating a Christmas tree concession within the City. RFLI responses were due April 20, 2018. The Procurement Department issued solicitation notices to 441 firms and organizations, including those identified by the Tourism, Community and Economic Development Department performing these services locally. However, no responses to the RFLI were received. As a result, staff queried prospective proposers to determine why no responses to the RFLI were received. The common response was that Christmas tree concessions require a great deal of resources and manpower and the revenue margins are very small. The queried vendors stated their reluctance to invest the necessary resources to establish the concession given, what they have deemed to be, potentially low sales volume. As a reminder, the aforementioned RFLI represents the City's second attempt to solicit proposals for a Christmas tree concession. In August 2017, the Administration issued a previous RFLI that also resulted in no responses. j JLM/KGB/E / D/KB/WG c: Kathie Brooks, Assistant City Manager Eva Silverstein, TCED Director Alex Denis, Procurement Director F:\PURC\Solicitations\2018\2018-185-WG Christmas Trees Concession\LTC - RFLI 2018-185-WG.docx