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2000-24137 RESO Revised : ' RESOLUTION NO: 2000-24137 (REVISED) A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE AMENDMENT NO. 4 TO THE CONCESSION AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND PENROD BROTHERS, INC. FOR RENTAL OF EQUIPMENT WITH FOOD AND BEVERAGE SERVICE AT PIER PARK, OCEANFRONT PARK, AND LUMMUS PARK; FURTHER WAIVING, BY 517THS VOTE, THE COMPETITIVE BIDDING REQUIREMENT TO ALLOW PENROD BROTHERS, PURSUANT TO THIS AMENDMENT NO.4, TO OPERATE A PILOT CONCESSION PROGRAM AT NORTH SHORE OPEN SP ACE PARK AND THE BEACH AREA ADJACENT TO OCEAN TERRACE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY WHEREAS, on October 2, 1985, the Mayor and City Commission adopted Resolution No. 85-18222, approving a Concession Agreement, dated November 7,1985, between the City and Penrod Brothers for the rental of beach equipment, water recreation equipment and food and beverage service at Pier Park, Oceanfront Park, and Lummus Park; and WHEREAS, on July 23, 1986, the Mayor and City Commission adopted Resolution No. 86-18539-A, approving Amendment No.1 to the Concession Agreement, dated August 13, 1986; and WHEREAS, on September 3,1986, the Mayor and City Commission adopted Resolution No. 85-18571, approving Amendment No.2 to the Concession Agreement, dated September 4, 1986; and WHEREAS, on April 20, 1988, the Mayor and City Commission adopted Resolution No. 85-19223, approving Amendment No, 3 to the Concession Agreement, dated April 22, 1988; and WHEREAS, said Concession Agreement, as amended, is scheduled to expire on November 4, 2000; and WHEREAS, on May 10, 2000, the Administration recommended, and the Mayor and City Commission concurred, that the issuance of a new Request for Proposals (RFP) for the future operation and management ofbeachfront concessions be referred to a Joint Meeting of the Land Use and Development Committee and Finance/Citywide Projects Committee; and WHEREAS, on September 21, 2000, at the Joint Meeting of the Land Use and Development Committee and Finance/Citywide Projects Committee it was recommended that the Administration negotiate a one year extension with Penrod Brothers while the proposed Rules and Regulations for Beachfront Concession Operations are being considered by the State of Florida, community meetings with interested parties are held, and a new RFP is finalized; and WHEREAS, the Land Use and Development Committee and Finance/Citywide Projects Committee further recommended that, as part of the negotiations, consideration be given to adopting a revenue sharing formula which would provide additional income to the City, and the possible inclusion of a Pilot Concession Program to establish the feasibility of servicing the beaches east of North Shore Open Space Park and Ocean Terrace; and WHEREAS, the Administration and Penrod Brothers have negotiated Amendment No.4 to the Concession Agreement, which includes provisions for a one year extension, beginning on November 5, 2000, and ending on November 4,2001; an increase to the City's revenue from 10% of gross revenues, to 15% of gross revenues; an increase to the rates permitted for the rental of lounge chairs from $5.00 per chair, to a maximum of$10 per chair, from November through May; and the addition of a Pilot Beach Concession Program to service the beaches east of North Shore Open Space Park and Ocean Terrace. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and City Clerk are authorized to execute the attached Amendment No.4 to the Concession Agreement between the City of Miami Beach and Penrod Brothers, Inc. for the rental of beach equipment, water recreation equipment, and food and beverage service at Pier Park, Oceanfront Park, and Lummus Park; further waiving, by 5/7ths vote, the competitive bidding requirement to allow Penrods, pursuant to this Amendment No.4, to operate a Pilot Concession Program at North Shore Open Space Park and the beach area adjacent to Ocean Terrace, finding such waiver to be in the best interest of the City. PASSED AND ADOPTED THIS 18th day of October ,2000. Attest: f;J MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION k~f~ CITY CLERK JMG:CMC:JD:rd ~ /.O-30-ab F:\DDHP\$ALLIASSE1iBE C P _2000\PEN~2.RES 10/12/00.2 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miaml-beach.ftus L.T.C. No. L 3 ! - 2000 LETTER TO COMMISSION October 31, 2000 TO: Mayor Neisen 0, Kasdin and Members of the City Commission Jorge M. Gonzalez '\. I ~ City Manager 'Ij <Y~ 0 SUBJECT: Clarification and Correction of October 18, 2000 City Commission Agenda Item R-7-N FROM: On October 18, 2000, the City Commission approved item R-7 -N which created a fourth amendment to the existing Concession Agreement between the City of Miami Beach and Penrod Brothers, Inc. Part of said amendment included the operation of a Pilot Program at North Shore Open Space Park (78th Street-87th Terrace), As a point of clarification, the Pilot Program not only encompassed the North Shore Open Space Park area, but also included the beach area adjacent to Ocean Terrace (73rd-75th Street). This LTC shall serve as notice to the City Commission of the Administration's intent to clarify the aforementioned by correcting Commission Memorandum No. 806-00, Resolution 2000-24137 and Amendment No.4 to the Concession Agreement to include the beach area adjacent to Ocean Terrace as part of the Pilot Program, JMG:C~C:JD:r1r ~ cc: Robert Parcher, City Clerk Jose Damien, Asset Manager UDDHPISALLIASSETlBEACHFRN\PUBLlCIRFP _2000IPENROD.L TC CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.mlami-beach.f1.us COMMISSION MEMORANDUM NO. 806-00 (REVISED) TO: Mayor Neisen Kasdin and Members ofthe City Commission DATE: October 18, 2000 FROM: Jorge M. Gonzalez City Manager SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE AMENDMENT NO. 4 TO THE CONCESSION AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND PENROD BROTHERS, INC. FOR RENTAL OF EQUIPMENT WITH FOOD AND BEVERAGE SERVICE AT PIER PARK, OCEANFRONT PARK, AND LUMMUS PARK; FURTHER WAIVING, BY S!7THS VOTE, THE COMPETITIVE BIDDING REQUIREMENT TO ALLOW PENROD BROTHERS, PURSUANT TO THIS AMENDMENT NO.4, TO OPERATE A PILOT CONCESSION PROGRAM AT NORTH SHORE OPEN SPACE PARK AND THE BEACH AREA ADJACENT TO OCEAN TERRACE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY ADMINISTRATION RECOMMENDATION: Adopt the Resolution. BACKGROUND: On November 7, 1985, the Mayor and City Commission adopted Resolution No. 85-18222, approving a Concession Agreement between the City of Miami Beach and Penrod Brothers, Inc. (Penrod Brothers) for the operation and management of beach front concessions, including rental of beach equipment, water recreation equipment, and food and beverage service at Pier Park, Oceanfront Park, and Lummus Park. The Concession Agreement which was subsequently amended on August 13, 1986, via Resolution No. 86-18539 (Amendment No.1), on September 4, 1986, via Resolution No. 85-18571 (Amendment No.2), and April 20, 1988, via Resolution No. 88-19223 (Amendment No.3), is scheduled to expire on November 4, 2000. On May 10, 2000, the Administration recommended that the Mayor and City Commission refer the matter of issuance of a new Request for Proposals (RFP) for the operation and management of the respective beachfront concessions to a joint meeting of Land Use and Development Committee and Finance/Citywide Projects Committee (Joint Committee). The Mayor and City Commission AGENDA ITEM R-7-N REVISED DATE 10/18/00 concurred and the matter was so referred. On September 21, 2000, the Joint Committee recommended that the Administration negotiate a one year extension with Penrod Brothers while the Rules and Regulations for Beachfront Concession Operations (Rules and Regulations) are being considered by the State of Florida, community meetings with interested parties are held, and a new RFP is finalized. As part of the negotiations the Joint Committee asked that consideration be given to a revenue sharing formula, which would provide additional income to the City, the possible inclusion of a pilot concession program to establish the feasibility of servicing the beaches east of North Shore Open Space Park, and potentially consider the inclusion of maintenance service to the restroom facilities in the parks,. As to the latter, the Administration and Penrod Brothers agreed that the issue of restroom facility maintenance should be addressed in the future RFP, and as such it was not included in the amendment. The proposed extension was based on the following recommended time line: Conclusion of Rules and Regulations issues with the State of Florida City Commission approval of Rules and Regulations Meetings with community organizations/interested parties Issuance of new RFP Receipt of Proposals Evaluation of Proposals Proposer selected by City Commission Negotiation of Concession Agreement A ward of Concession Agreement by City Commission New Concession Agreement begins October 2000 November 2000 November/December 2000 December 'OO/January 2001 February/March 2001 April 2001 May 2001 July-September 2001 September 2001 November '01 Additionally, attached hereto is a copy of a letter received from Marlo Courtney, representing the Ocean Drive Association. Mr. Courtney expresses support, on behalf of the Ocean Drive Association, relative to the Administration's recommendation and proposed timetable to extend the existing Concession Agreement for a one year period. This Amendment No. 4 to the Concession Agreement, which was negotiated between the Administration and Penrod Brothers addresses the following issues: . Penrod Brothers shall be responsible for enhancing its beach cleaning and maintenance efforts including manual sifting of sand, and removal of debris on a daily basis on all beaches under the purview of this Concession Agreement. . Penrod Brothers shall be responsible for enhancing its cleaning efforts in the dune area on all beaches under the purview of this Concession Agreement, including manual removal of debris on a daily basis, in accordance with, and as may be permitted by Federal, State, County, and municipal law. . Prices charged by Penrod Brothers to patrons for the rental of beach (lounge) chairs may be increased from five dollars ($5.00) per chair per day, to a maximum often dollars ($10.00) per chair per day for the months from November through May, which may include other items such as a beach towel, which is now charged for separately. . Penrod Brothers will operate a pilot beach concession program, subject to the same terms and conditions of the existing Concession Agreement, as amended, at North Shore Open Space Park and the beach area adjacent to Ocean Terrace on weekends and holidays, and may consider expanding such services to week days, as warranted, The approval of said pilot program will require a 5/7ths vote of the Mayor and City Commission since it is in an area not specifically identified in the existing Concession Agreement, as amended. . The percentage of gross revenues payable to the City by Penrod Brothers will increase from ten percent (10%) to fifteen percent (15%). Below please find a schedule of the revenues to the City for the prior eleven (11) month period and the projected revenues to City under the proposed amendment. It is estimated that as a result of the increase in percentage of gross to the City, coupled with the increase in chair rental charges, approximately $126,517 will be generated as additional revenue to the City, for an eleven (11) month period. Period FY 99-00 (II months) FY 00-01 (II months) Estimated additional REVENUE REPORTED CITY REVENUE PROJECTED CITY Revenue to the BY PENROD SHARE FOR PENROD SHARE City in FY 00-01 Chairs Only Overall 10%of Chairs Only Overall 15%of (II months) Gross Gross 10/99 $ 38,089 $ 75,210 $ 7,521 $ 38,089 $ 75,210 $ 11,281 $ 3,760 11/99-5/00 $ 581,448 $ 1,040,728 $ 104,072 $930,316 $ 1,389,597 $ 208,440 $ 104,367 6/00-8/00 $ 184,223 $ 367,808 $ 36,781 $ 184,223 $ 367,808 $ 55,171 $ 18,390 I Total II $ 803,760 I $ 1,483,746 I $ 148,3741 I $ 1,268,918 I $ 1,832,615 I $ 274,89211 $ 126,5171 Chair revenue numbers are based on current the ratio of overall"rentals" which includes "chairs" and "umbrellas." The percentage of "chair" rentals ranges from approximately 70% to 86% depending on the month and averages 79% yearly. A 20% dilution factor has been assumed in projection ofFY 00-01, for the period of 11/99-5/00 "Chairs Only" revenue. . The term of the Concession Agreement, as amended, shan be extended for a one (1) year period beginning on November 5, 2000, and ending on November 4, 2001. . An other terms and conditions of the Concession Agreement, as amended, shall remain in fun force an effect. The Administration recommends that the Mayor and City Commission approve Amendment No.4 to the Concession Agreement and waive, by 5/7ths vote, the competitive bidding requirement to anow Penrod Brothers to operate a Pilot Concession Program at North Shore Open Space Park as it would be in the best interest of the City. The term extension contained therein will provide an opportunity to finalize the Rules and Regulations for Beachfront Concession Operations, and confer with, and seek input from, the Ocean Drive Association and other interested parties with regard to the new RFP, while ensuring the non-interruption of services to beach patrons, and provide for a short term pilot program to establish the feasibility of a long term beach concession program at North Shore Open Space Park and the beach area adjacent to Ocean Terrace. JMG:CMC:JD:rd F:\DDHP\$ALL IASSETlBEACHFRN\PUBLlC\RFP _ 2000IPENROD2.MEM 10/12/00.2 :,y~};: iI ,/ ,- Tel. 30~ ~31-4411 Ocran Drive Association 804 Oce8ll Drive Miami Beach, Florida 33139 Fax 305 673-3106 September 21, 2000 Christina C ucrvo Assistant City Manager City of Miami Beach 1700 Conventio.n C enter Drive Miami Beach, Florida 33139 Re: Beach Concession Reouests For Propos~ls Dear Christina. Thank you for forwarding me the administration recommendations and the timetable regarding the RFP process for the Lummus Park Beach concessions, I believe that the two outlined recommendations in the manager's memorandum to the members of the Land Use and Development Committee. and the subs~uent timetable we developed are acceptable, Please make sure that the administrationi makes it', best efforts to stay with this time ~~ . The Ocean Drive Association recogniZl'S the importance of this RFP and will be very involved in all aspects o[lhis very significant issue Thank you [or your assistance, , , \, .',~~~ i;\~"i:~.~,:'?~:~J ~~,I"~' ~"?"!~;:,~~1'~ :. ~;~..~< -); , \ :"" :," .';;..''-- ~. 't:;.~';:. :: ..:-:...,-~ --. ::,' ;,- <:~~ J; ~~:';y' i ~ _ ,~~,.~~ ~ ,_:{<~-; '.':" i~1 ",.,: .....""w'~".J<;,~ , ~ " '.} '':-I:{::ft;:~:~~~~,~t:F~~:."'' -, . AMENDMENT No.4 TO CONCESSION AGREEMENT This Fourth Amendment to the Concession Agreement, dated November 27,1985, for the operation and management of beachfront concessions, including rental of beach equipment, water recreation equipment and food and beverage service at Pier Park, Oceanfront Park, and Lummus Park, between the CITY OF MIAMI BEACH (City), a Florida Municipal Corporation, having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, and PENROD BROTHERS, INC. (Penrod Brothers), having its principal office at One Ocean Drive, Miami Beach, Florida, is entered into this 1st day of November, 2000. WITNESSETH WHEREAS, on October 2, 1985, the Mayor and City Commission adopted Resolution No. 85-18222, approving a Concession Agreement between the City and Penrod Brothers for the rental of beach equipment, water recreation equipment and food and beverage service at Pier Park, Oceanfront Park, and Lummus Park; and WHEREAS, on July 23, 1986, the Mayor and City Commission adopted Resolution No. 86-18539-A, approving Amendment No.1 to the Concession Agreement, dated August 13, 1986; and WHEREAS, on September 3,1986, the Mayor and City Commission adopted Resolution No, 85-18571, approving Amendment No.2 to the Concession Agreement, dated September 4, 1986; and WHEREAS, on April 20,: 1988, the Mayor and City Commission adopted. Resolution No. 85-19223, approving Amendment No.3 to the Concession Agreement, dated Apri122, 1988; and WHEREAS, said Concession Agreement is scheduled to expire on November 4, 2000, and as such the City and Penrod Brothers have agreed to extend the Concession Agreement, for a one (1) year period. NOW, THEREFORE, the City and Penrod Brothers mutually agree that the Concession Agreement, as amended, be further amended as follows: 1. The Concession Agreement shall be extended for a one (1) year period beginning on November 5,2000, and ending on November 4, 2001. 2. Penrod Brothers shall be responsible for enhancing its beach cleaning and maintenance efforts, to include manual sifting of sand, and removal of debris on a daily basis on all beaches under the purview of this Concession Agreement. 3. Penrod Brothers shall be responsible for enhancing its cleaning efforts in the dune area on all beaches under the purview of this Concession Agreement, to include manual removal of debris on a daily basis, in accordance with, and as may be permitted by, Federal, State, County, and municipal law. \ i 4. Prices charged by Penrod Brothers to patrons for the rental of beach (lounge) chairs may be increased from five dollars ($5.00) per chair, per day, to a maximum often dollars ($10,00) per chair, per day, but only for the months from November through May; otherwise, such lounge chair rental rates (i,e. for the months from June through October) shall remain at five dollars ($5.00) per chair, per day. 5. The percentage of gross revenues payable to the City by Penrod Brothers, as defined in Section 16, entitled "RENTAL", of the Concession Agreement, will increase from ten percent (10%), to fifteen percent (15%). 6. Penrod Brothers will operate a Pilot Beach Concession Program, subject to the same terms and conditions of the existing Concession Agreement, as amended, at North Shore Open Space Park and the beach area adjacent to Ocean Terrace, on weekends and holidays, Expansion of such services to week days may be considered, if warranted, when requested by Penrod Brothers and upon the prior written consent by the City Manager. 7. All other terms and conditions of the Concession Agreement, as amended, shall remain in full force an effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No.4 to the Concession Agreement to be executed by their duly authorized officials on the day first above indicated. ATTEST: CITY OF MIAMI BEACH, FLORIDA APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 1U ~ ~DBROTHERS,INC. c Attomey 0a1Il ~~VOR ~d' p~ CITY CLERK ~\A.A-. ~-'-~ ~e..~ Authorized Signatory ~f\~~ ?':::N~\) ~~...> Name and Title of Signatory JMG:CMC:JD:rd F:\DDHP\$ALLIASSET\BEACHFRN\PUBLIC\RFP _ 2000IPENR0D2.AMD 10/12/00.2