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Resolution 2022-31987RESOLUTION NO. 2022-31987 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, TO REJECT ALL PROPOSALS RECEIVED PURSUANT REQUEST FOR PRPOSALS (RFP) NO. 2021 -188 -WG FOR PROFESSIONAL TENNIS MANAGEMENT AND OPERATIONS SERVICES AT THE CITY'S FLAMINGO PARK TENNIS CENTER. WHEREAS, on April 21, 2021, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) 2021 -188 -WG for Professional Tennis Management and Operations Services at the City's Flamingo Park Tennis Center (the "RFP"); and WHEREAS, the RFP responses were due and received on May 24, 2021; and WHEREAS, the City received proposals from the following seven firms: Casely Tennis Foundation, Inc., David Ensignia Tennis Academy, Inc., Sport Partners, LLC, Gorin Tennis Academy, Inc., Agape Tennis Academy, LLC, Tennis Revolution, LLC, and Club Med Academies; and WHEREAS, the proposal from Club Med Academies was determined to be non- responsive for failing to submit the minimum annual guarantee per the requirements of the RFP and, therefore, could not be further considered; and WHEREAS, the City Manager appointed an Evaluation Committee ("Committee"), comprised of: David Berger, Member, Parks and Recreational Facilities Advisory Board; Cindy Casanova, Assistant Director, Parks and Recreation Department; Zhaoming Guan, Recreation Superintendent, City of Miami; Lindsey Lovell, Board of Governors, Miami Beach Chamber of Commerce; and Stephanie Rosen, Vice -Chair, Parks and Recreational Facilities Advisory Board; and WHEREAS, the Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law, as well as general information on the scope of services, and a copy of each proposal; WHEREAS, the Committee was further instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP; and WHEREAS, the evaluation process resulted in the proposers being ranked by the Committee in the following order (See Attachment A): 1st ranked — Casely Tennis Foundation, Inc. 2nd ranked — David Ensignia Tennis Academy, Inc. 3rd ranked — Agape Tennis Academy, LLC 4th ranked — Tennis Revolution, LLC 5th ranked — Sport Partners, LLC 6th ranked — Gorin Tennis Academy, Inc. WHEREAS, the Parks and Recreation Department ("Department") has been operating the Flamingo Park Tennis Center ("Center") since February 2020; and WHEREAS, although challenges encountered due to the COVID pandemic were expected, the Center flourished, play increased, and the Department successfully rose to the occasion; and WHEREAS, additionally, the Department has instilled an increased level of trust and satisfaction with the tennis community, tennis patrons and instructors that had been strained by the previous management company; and WHEREAS, further, profitability rose significantly under the management of the Department, and more so than with the previous management company; and WHEREAS, notwithstanding the successful management of the Center by the Department, the Administration determined that it was in the best interest of the City to receive and evaluate proposals for the operation of the Center by a private entity, through the issuance of an RFP; and WHEREAS, it was the Administration's expectation that seeking proposals from private operators would result in opportunities to promote innovation, increase customer satisfaction, and yield higher revenue; and WHEREAS, while some proposals appear to propose revenue that is higher than is currently yielded by the Center, City staff does not believe that any of the proposals will result in the significant improvement of the Center operations, particularly with regard to customer satisfaction; and WHEREAS, based on the foregoing, the City Manager considers that it is in the City's best interest to reject all proposals received pursuant to the RFP, and continue with the in- house management of the Center. NOW, THEREFORE, BE IT DULY 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 City Manager, to reject all proposals received pursuant to Request for Proposals (RFP) 2021 -188 -WG for Professional Tennis Management and Operations Services at the City's Flamingo Park Tennis Center. PASSED and ADOPTEI)AN 20 day of 7"nkq'r 2022. ATTEST: �Fpp.?TED•` RAFA L E. GRANADO, CITY CLERK JAN 2 5 2022 DAN GELBER, MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City Attomey to -L C7 -Resolutions U MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: January 20, 2022 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO REJECT ALL PROPOSALS RECEIVED, PURSUANT REQUEST FOR PROPOSALS (RFP) NO. 2021 -188 -WG, FOR PROFESSIONAL TENNIS MANAGEMENT AND OPERATIONS SERVICES AT THE CITY'S FLAMINGO PARK TENNIS CENTER. RECOMMENDATION It is recommended that the Mayor and City Commission accept the City Manager's recommendation to reject all proposals received pursuant to Request for Proposals (RFP) 2021 -188 -WG for professional tennis management and operations services at the City's Flamingo Park Tennis Center. BACKGROUND/HISTORY On April 23, 2014, The City of Miami Beach entered into an agreement with Miami Beach Tennis Management, pursuant to RFP 095-2013ME, for tennis management and operations services at the City's Flamingo Paris and North Shore Tennis Centers. The Agreement stipulated a term of three (3) years with two (2) additional one-year renewal options for both Flamingo and North Shore Tennis Centers. However, on July 26, 2017, the Mayor and City Commission adopted Resolution No. 2017-29935, removing the North Shore Tennis Center from the scope of the Agreement. The management and operations of the North Shore tennis facility are currently not under consideration and are not part of the scope of this RFP. As a result of this action, Miami Beach Tennis Management would continue to operate only the Flamingo Park Tennis Center through May 31, 2019. Prior to the expiration of the contract with Miami Beach Tennis Management, on February 13, 2019, the City issued RFP No. 2019 -046 -WG, for professional tennis management and operation services at the City's Flamingo Park Tennis Center. On May 8, 2019, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with Miami Beach Tennis Management for the management and operations of the Flamingo Park Tennis Center. However, negotiations became protracted and, in January 2020, Miami Beach Tennis Management elected to end negotiations and move out of the facility by February 2020. Since that time, the City of Miami Beach Parks and Recreation Department has been managing the facility in the interim. Page 375 of 1313 The Parks and Recreation Department has received positive feedback from tennis players and coaches regarding its operation of the center. Notwithstanding, in an effort to solicit competition and evaluate available options, the Administration determined that it was in the best interest of the City to request proposals for the management and operations of the Flamingo Park Tennis Center, including instruction, programming, operations, and maintenance of the tennis courts, as Well as operations and management of the pro shop and the food and beverage concession. On April 21, 2021, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) 2021 -188 -WG for professional tennis management and operations services at the Cityis Flamingo Park Tennis Center. RFP responses were due and received on May 24, 2021. The City received proposals from the following seven firms: Casely Tennis Foundation, Inc., David Ensignia Tennis Academy, Inc., Sport Partners, LLC, Gorin Tennis Academy, Inc., Agape Tennis Academy, LLC, Tennis Revolution, LLC, and Club Med Academies. The proposal from Club Med Academies was determined to be non-responsive for failing to submit the minimum annual guarantee per the requirements of the RFP and, therefore, could not be further considered. The Evaluation Committee appointed by,the City Manager convened to consider the proposals received. The Committee was comprised of: David Berger, Member, Parks and Recreational Facilities Advisory Board; Cindy Casanova, Assistant Director, Parks and Recreation Department; Zhaoming Guan, Recreation Superintendent, City of Miami; Lindsey Lovell, Board of Governors, Miami Beach Chamber of Commerce; and Stephanie Rosen, Vice -Chair, Parks and Recreational Facilities Advisory Board. The Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided with general information on the scope of services and a copy of each proposal. The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP. The evaluation process resulted in the proposers being ranked by the Evaluation Committee in the following order (See Attachment A): 1 st ranked — Casely Tennis Foundation, I nc. 2nd ranked — David Ensignia Tennis Academy, Inc. 3rd ranked —Agape Tennis Academy, LLC 4th ranked — Tennis Revolution, LLC 5th ranked — Sport Partners, LLC 6th ranked — Gorin Tennis Academy, Inc. SUPPORTING SURVEY DATA Not Applicable. FINANCIAL INFORMATION Not applicable. Amount(s)/Account(s): Not applicable. Page 376 of 1313 CONCLUSION As previously stated, the Parks and Recreation Department has been operating the Flamingo Park Tennis Center since February 2020. Although challenges encountered due to the COVI D pandemic were expected, the tennis center flourished, play increased, and the Parks and Recreation Department successfully rose to the occasion. Additionally, the Parks and Recreation Department instilled an increased level of trust and customer satisfaction with the tennis community, tennis patrons and contracted instructors that had been strained with the previous management company. Further, profitability rose significantly when compared to the previous management company. During Fiscal Year 2021, the center generated approximately $1.39 million in revenue with a profit of approximately $266,000. In Fiscal Year 2022, the Department is projecting a revenue yield of approximately $1.51 million with an estimated profit of approximately $178,000. The profit projection is conservative to allow for potential increases in operating expenses. Notwithstanding the successful management of the center by the Parks and Recreation Department and the revenue yields, the Administration determined that it was in the City's best interest to consider proposals, through the issuance of an RFP, for privatizing center operations. It was the Administration's expectation that proposals from private operators would result in opportunities to promote innovation, increase customer satisfaction, and yield higher revenue. However, while some proposals seem to propose higher revenue than is currently yielded by the center, staff does not believe any of the proposals will result in significantly improved center operations, particularly with regard to customer satisfaction. It should be noted that while the City was in the transition of operating the tennis center from the previous management company in 2020, many tennis patrons expressed concerns to the Parks and Recreation Department that the privatizing of the management and operation of the center may sometimes lead to contractors being more concerned about profitability over customer experience, a consideration that the Department has been very cognizant of during its management of the facility. With regard to the high revenue yields included in some proposals, it is important to note that, based on historical data, it does not seem to be possible to achieve increased yields without an impact on maintenance and customer service, or an increase in fees. Further, the Administration does not believe that prioritizing a modest profit yield over customer satisfaction and service to residents and other center customers is advisable. Based on the foregoing, I believe it is in the City's best interest to reject proposals received pursuant to the RFP and continue with the in-house management of the center. The Parks and Recreation Department will continue to maximize the quality of tennis instruction and maintenance of the courts, while prioritizing a high level of customer satisfaction. Therefore, I recommend that the Mayor and City Commission accept the recommendation to. reject all proposals received pursuant to Request for Proposals (RFP) 2021 -188 -WG for Professional Tennis Management and Operations Services at the Citys Flamingo Park Tennis Center. Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Yes Does this item utilize G.O. Bond Funds? Yes Page 377 of 1313 Legislative Tracking Parks and Recreation/Procurement ATTACHMENTS: Description ❑ Attachment A ❑ Resolution Page 378 of 1313 IFP 2011.188 -WO Veteran's Points Revenue Pro oeal Revenue Proposal Points Agape Tennis Academy,LLC 0 S 180 40.00 12 Cesely Tennis Foundation, Inc 0 $ 300 000.00 20 David Ensignia Tennis Academy Inc. 0 $ 288,000.00 111 Prof"donel managenwlR and Operation Fladrigo Park 0 David Berger 219 999.99 g $� S ort Partners. LLC Cindy Casanova S 1811000.00 Zhsomin9 Own Tennis Revolu0on LLC 0 Lindsay Lovell 210,000.00 qr StephWs Rouen LOW T nls Center n` n8$ gg d Aggregate Totels Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal Qualitative Quantitative 8ubta"I Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal Agape Tennis Academy, LLC- 80 12 ._ 92 4 __71 12 83 2 72 _ 12 84, 3 76 12 88 4 72 12 84 4 17 3 Casely Tennis Foundation, ' _ _ Inc. __.._ ._ 77 _20 97 2 66 20 86 1 68 20 86, 1 72 20 92 1 73 20 93 David Ensignia Tennis _,_ _ _ _ Academy Inc. 80 19 99 1 ,_82 19 3 69 19 88 1 70 89 3 87 19 86 2 2 _,81— _19 Godn Tennis AcademyInc. 71 15 86 6 59 15 74 5 86 _ 15 83 4 68 15 83 6 89 15 84 4 25 8 5 art Partners, LLC _,___ _ 77 72 _. 89 5 81 12 73 8 68 12 76 5 73 12 _ 85 5 73 12 85 3 � 24 5 Tennis Revolution LLC _._ _ 80 11 94 3 84 14 78 4 81 14 75. 6 76 14 BO 2 80 _ 14 _._. 74 6 21 4 Proposer Veteran's Points Revenue Pro oeal Revenue Proposal Points Agape Tennis Academy,LLC 0 S 180 40.00 12 Cesely Tennis Foundation, Inc 0 $ 300 000.00 20 David Ensignia Tennis Academy Inc. 0 $ 288,000.00 79 Gorin Tennis Academy Inc. 0 $ 219 999.99 15 S ort Partners. LLC 0 S 1811000.00 12 Tennis Revolu0on LLC 0 210,000.00 14 FOR DISPLAY PURPOSES ONLY. FINAL RANKING DOES NOT CONSTITUTE AN AWARD RECOMMENDATION. Page 379 of 1313