2010-27391 Reso- ~ 2010-27391 j
RESOLUTION NO.~ _ .~
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
. MIAMI BEACH, FLORIDA, ACCEPTING -THE RECOMMENDATION OF THE CITY
MANAGER; PURSUANT TO REQUEST FOR PROPOSALS (Rf P) NO. 05-09/10,
FOR THE MANAGEMENT AND OPERATION OF CONCESSION STANDS AND
BEACHFRON;T CONCESSIONS, LOCATED EAST OF COLLINS AVENUE, AT
.. BOTH 21 sr STREET AND 46T" STREET; AND AUTHORIZING THE ~ .
ADMINISTRATION TO ENTER LNT® NEGOTIATIONS 11VITH -THE TOP-RANKED
. FIR1lII, M & M CONCESSIONS; `1NC.; SHOULD THE ADMINISTRATION NOT BE
~~ ~ ~ ABLE TO SUCCESSFULLY NEGOTIATE AN AGREEMENT WITH THE TOP-
1 RANKED FIRM, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE-WITH .
a THE SECOND-RANKED FIRM, SB CAFE; LLC..; AND FURTHER AUTHORIZING
THE MAYOR ,AND C1TY .CLERK TO EXECUTE AN AGREEIlIIENT, UPON
` " . ~ : ~ ' CONCLUSION OF SUCCESSFUL NEGOTIATIONS. "
VIiHEREAS, on' October 14, 20~9~, the Mayor and City Commission approved the
.. issuance ofRequest for Proposals (RFP) No. 05-09/10, for the Management and Operation
= of Concession Stands and Beachfront Concessions, located East of Collins Avenue, at .both
~21 St Street and 46th Street (the "RFP"); and "
WHEREAS, the successful proposer- must agree to manage and operate. both
concession `areas; and ~ .
" ~ WHEREAS, on October. 20, _2009; the RFP was issued with an opening date of
~~: .December 17, 2009; and
.
WHEREAS, notices were sent to over 85 prospective proposers resulting in the
receipt of three (3) proposals from. SB Cafe, LLC, M & M Concessions, lnc. and Esteban's
Pace, lnc.; and
WHEREAS; the City °Manager, " V,ia Letter to Commission '(LTC) No: 100-201.0,
appointed :the following individuals as committee members:
• Jennifer Massolo, Miami Beach Resident, Leadership Academy;
- • ~ Ana Cordero, Miami Beach Resident, and Waterfront Protection Committee (Chair);
• Robert Reboso, Asset :Management;
• ..John Oldenburg; Assistant Director, Parks and Recreation; _
'. Amani Ayers., Miami Beach Resident, Leadership Academy;
• .~ Kumar Prakash, Miami . Beach Resident, Leadership Academy, Board. Member, "
- - ~ "Collins -Park. Neighborhood ~ Association, Board Member, CMB's Homeless
Committee; and
. .
WHEREAS, theCommittee convened on April.26, 2010 to listen to presentations and
conduct uestion and answer ,session with ~ all three 3 res onsive
q O p proposers and after
discussinng their individual perceptions of the proposers' .:qualifications; experience, .and
competence, heCommittee members unanimously ranked; M & M Concessions as the top-
'° ~ ra ked firm, and. SB Cafe; as the second-ranked firm; and
. ~ 1PVHEREAS, the.. City Manager has. reviewed and concurs with the Evaluation
Committee's recommendation. .
NOW,,THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF TH''E CITY OF MIAMI BEACH,. FLORIDA, that the Mayor and City ,Commission hereby
accept the- recommendation of the City Manager,pursuant to Request for .Proposals (RFP)
No. 05-09/10, for the :Management and.;Operation of Concession Stands and Beachfront
.:
Concessions, ,located .East of Collins Avenue, at both 21St Street and 46t" Street;. and
authorizing .the Administration to enter .into negotiations with the top-ranked firm, M & M
.Concessions,- lnc.; should the Administration not The .able to successfully negotiate an
agreement with the top-.ranked firm;. authorizing. the Administration to negotiate with the
- second-ranked firm, SB Cafe, L_LC, and further authorizing the Mayor and City- Clerk. to
execute an agreement upon. conclusion of successful negotiations.
i. ~ . -
PASSED ~AIVD ADOPTED THIS _ ~~ DAY OF ~ ~ .2010.
.
ATTEST:
. ~ ,
-.
_^~CITY CLERK O:R ,.
}- T:\AGENDA\2010\May. 12\Consent\RfP 05-09-1-0 For the Management and Operation of Concession Stands -
RESO.doc .
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. ~ APPROVED AS TO
. ~ FORM & LANGUAGE , .
.. ~~
. - _. . ~ FOR EXECUTION
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Condensed Title:
COMMISSION ITEM SUMMARY
A Resolution Accepting The City-Manager's Recornmendatiort Pertaining To The Ranking For The
Management And Operation Of Concession Stands And Beachfront Concessions, Located East Of
Collins .Avenue, At 21st Street And 46th Street, Authorizing The Administration To Enter Into
Ne otiations, .And Authorizin the Ma or And Cit Clerk to Execute An A reement.
Ke Intended Outcome SupporEed:
Maximize Miami Beach as a destination brand.
Supporting Data (Surveys, Environmental Scan,. etc.):
20Q8 Survey indicates that 91 % of visitors and 81 % of international visitors indicated they definitely
would or very likely would return to Miami Beach in the future. This indicates a strong repeat business
for Miami Beach.
Issue: .
Shall the City Commission approve the City Manager's ,recommendation?
Item Summa /Recommendation: ~ -
On October 14, 2009, the Mayor and City Commissiortapproved the issuance of Requestfor.Proposals
(RFP} No. 05-09/10, for the Management and Operation of Concession Stands. and Beachfront
Concessions, located East of Collins Avenue,. at both 21st Street and 46t" Street (the "RFP").
The City will grant to the successful proposer, the exclusive right, during the Term of this Agreement, "to
manage and operate the concession areas located east"of Collins Avenue at'both 21St Street and 46th
Street, as described herein, in the following areas (hereinafter referred to collectively as the
"Concession Areas"}. The successful proposer must~agree to manage and' operate both concession
.areas.
On October 20, 2009, the RFP was issued with an opening date of December 17, .2009 and notices.
were sent to over 85 prospective proposers resulting in the receipt ofthree j3}proposals from SB Cafe,
LLC, M & M Concessions, Inc. and Esteban's Place,, Inc.
The Term of this Agreement will be for a period of two (2) years with the. sole option and discretion of
the City, to renew for an additional three (3}, one year periods.
The City Manager, via a Letter to Commission (LTC) No.100-2010, appointed the Committee which
convened on April 26, 2010 to listen to presentations and conduct question and answer session with
alt three (3) responsive proposers. After discussing their individual perceptions of the proposers'
qualifications, experience, and competence, the Committee members unanimously ranked, M & M
Concessions as the top--ranked firm, and SB Cafe, as the second-ranked firm.
APPROVE THE AWARD OF CONTRACT.
Financial' Inf~rmafic~n~
Source of ;.'Amount : Account
- Approved .
Funds: 7..
O$PI ~ .: Total:.,,
Financial Impact~Summary: Revenue Generating:
Cite Clerk's Dffice Le islative Trackin
" Gus Lopez,.. Ext: 6641
Sian=Offs::. /1
De ent D;i or stant Cit Mana er : ' - Mana .e~' .
GL AP ~ I'DW , JMG
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- ~ i
. ~ City of Miami Beath, 1700 Convention Center Drive, Miami Beach., Florida 33139, www.miamibeachfl.gov
~~ ~ ~ C4MMIS.SION MEMORANDUM
TO: ~ Mayor Matti Herrera Bower'and Members of the City Commission
FROM:: Jorge M. Gonzalez, City Manager
.. DATE: May 12, 2010
SUBJECT: A RESOLUTION OF THE MAYOR ~ CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE. RECOMMENDATION Of THE CITY MANAGER,
PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 05-09/1:0, FOR THE
MANAGEMENT AND.OPERATION OF CONCESSION STANDS AND BEACHFRONT
CONCESSIONS, LOCATED EAST OF COLLINS AVENUE, AT BOTH 21ST STREET AND
. - ,
° 46T" STREET; AND AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP-RANKED FIRM, M & M CONCESSIONS, INC.;
SHOUL®THE ADMINfSTRATION NOT BE ABLE TO SUCCESSFULLY NEGOTIATE AN
. -. AGREEMENT WITH.. THE TOP-RANKED FIRM, AUTHORIZING THE ADMINISTRATION
TO NEGOTIATE WITH THE'SECOND-RANKED FIRM, SB CAFE, LLC.; AND FURTHER
AUTHOR~LZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT, UPON
~~ CONCLlJS1ON OF SUCCESSFUL NEGOTIATIONS.
-ADMINISTRATION RECOMMENDATION
Adopt the F~esolution. ,
.~ _ KEY INTENDED OUTCOMES SUPPORTED
~' 'Maximize Miami Beach as a destination brand.
BACKGROUND
On July 11, 2007, the Mayor and City Commission accepted the City Manager's recommendation,
" ' ' ~ authorizing the Administration to enter into negotiations with the top-ranked firm of Toby's
~" ~ Concession Services, Inc. ("Toby's") for the management and operation of concession stands and
beachfront concessions; located east of Collins Avenue at both 21St Street and 46th Street.. An
F ~ agreement was executed-with Toby's for. a concession term of January 15; 2008, through January 14,
. ~ 201.0. However, after one year's operations, Toby's failed to remit payment due to the City in January
2009, was subsequently deemed to be in default of its contractual ob igations, and was notified on
' . April 10; 2009, that the occupancy under the Concession Agreement was terminated: The
one
.. ~` C essionaire was allowed to remove its personal property from the premises, and in accordance
with the `Concession Agreement, the City drew down on the. concessionaire's $50,000 Irrevocable
Letter of Credit, and closed its file.
. ~ ~ On October 14; 2009,. the Mayor and City Commission approved the issuance of Request for .
. Proposals ('RFP) No. 05-09/10, for~the Management and Operation of Concession Stands and
- Beachfront Concessions, located East of Collins Avenue, at both 21st Street and 46th Street. (the
. RFP PROCESS ~ .
On October 20; 2009,. the- RFP was issued .with an opening date of December 17, 2009. A Pre-
proposa meeting to provide information to prospective proposers was held on November 5, 2009. A
Commission .Memo
RFP 05-09/10 -FOR THE ;MANAGEMENT AND OPERATION OF CONCESSION STANDS AND BEACHFRONT
CONCESSLONS, LOCATED EAST OF COLLINS AVENUE, AT BOTH 21ST STREET AND 46T" STREET
.May 12, 2010.. .
non-mandatory site visit was held on November 1.3, 2009. BidNet sent notices to 20 prospective
proposers; BidSync-sent no ices to prospective proposers of which 65 viewed the RFP.
The following three (3) proposals were. received by the RFP deadline for receipt of proposals:
• SB Cafe, LLC..
• M&M Goncessions, fnc.
• Esteban's Place, Inc.
t
"The City Manager, via Letter to Commission (LTC) No. -1.00-2010, -appointed an Evaluation
' Committee ("The Committee") consisting of the following individuals:
• Jennifer Massolo; Miami Beach Resident, Leadership Academy;
. Ana Cordero, Miami Beach Resident, and Waterfront Protection Committee {Chair);
• Robert Reboso, Asset Management;
. • John Oldenburg, Assistant .Director, Parks and Recreation.;
• Amani Ayers, Miami .Beach Resident; Leadership Academy;- and
• Kumar Prakash, Miami Beach Resident, Leadership Academy, Board Member, Collins Park
~' ~ Neighborhood Association, Board Member,_ CMB's Homeless. Committee.
. SCOPE OF SERVICES: ~ .
t _ The City will grant to the successful proposer, the exclusive right,. during the Term. of this Agreement,
to manage and operate the conce_ salon areas. located east of Collins Avenue at .both 21 St Street and
46t"Street, as described herein, in the following areas (.hereinafter referred to collectively as the
"Concession Areas`').
The successful proposer must agree to manage and operate. both concession areas and will be
authorized to conduct the following kinds of business(es) within the Concession Areas, as provided
~. below, all a# its sole cost and expense:.
- ~ ~ 21St Street Concession and 46th Street. Concession Areas:
PERMITTED USES: .
. ~ 1. ~ Operate and manage the concession stand, which shall sell and/or provide the following:
• Non-alcoholic beverages.. .
• Prepared and/or prepackaged foods.
.Beach related sundries.
2. ~ Operate and manage the beachfront concession,. which shall sell and/or provide the
following:
• Rental of chairs, pads, towels, umbrellas and sun canopies.
SCHEDULE OF OPERATION:
Successful proposer's operations shall, be open on the Concession Area, in accordance with the
schedule-outlined: befow,_weather or events of force majeure permitting.
Days of Operation: seven days a week;.365 days a year
Hours of Operation:. opening shall occur no earlier than one (1) .hour after
1 sunrise and close at sunset
Any'change in the days or~hours of operation require the prior written consent of the City Manager
including, but not limited to, change in the days and hours of operation requested pursuant to the
. 2~
Commission Memo-
RFP 05-09/10 =FOR THE .MANAGEMENT AND OPERATION OF CONCESSION STANDS AND $EACHFRONT
CONCESSIONS, LOCATED -EAST OF COLLINS AVENUE, AT BOTH 21ST STREET AND 46T" STREET
. ~ .: May 12, 2010
#.
Agreement.
CONCESSION FEES;
- .Security Deposit:
Upon execution of the Agreement,, the successful proposer shall furnish the City with a Security
i Deposit; as agreed to by the~City. Said Security Deposit shall. serve to secure successful proposers.
,` performance in accordance with the provisions of the Agreement. In the event the successful
proposer faits to perform in accordance with said provisions,. the City may retain said Security
deposit, as well as pursue any and alt other legal remedies provided herein, or as may be provided
by applicable law. ~ ~.
MinimumGuarantee (MG):
In consideration of the City executing the Agreement and granting the rights provided in the .
Agreement, the successful proposer shall pay to the City a Minimum Guaranteed Annual Concession
. Fee (MG). -
Percentage of Gross (PG):
During the. initial term, and` any renewal term, of the Agreement, successful proposer shall pay the
City a percentage of successful ,proposer's gross receipts (PG). 1n the event that the annual PG is
~l less than the MG amount provided in the Agreement, then the: successful proposer shall also pay to
the. City,.on an annual basis, the difference between the PG amount and the MG amount.
. i
.. ~ ~-In the event that the City, at its sole discretion, chooses to extend the term of this Agreement for any
{ renewal term, the. renewal term MG shall be subject to negotiations.
TERMS OF AGREEMENT
;.-
. The Term of this Agreement will be for a period of two (2) years with the sole option and discretion of
- the City, to renew for an additional three {3), one, year periods.
EVALUATION PROCESS
f - ~ - ~ -
. On April 26, 2010, the Committee convened to listen to presentations and conduct~questions and
answers session with all three~(3) responsive proposers.. -The Committee unanimously agreed: to
. - nominate Mrs. Ana Corderp as Corrimittee Chair.
i In determining the best qualified firms, the Committee thoroughly discussed the proposals, taking into
consideration both the benefits and challenges that each of the Concession Areas present by nature
. of their respective .locations. Therefore, in order to recommend the most qualified proposer, two.
major factors had to be present in contemplating future success of the venues;
1. Concession/food and beverage {'F&B) and beach equipment rental. experience;
2. The .level and quality of service to be extended.
Although all fhree (3) proposals were deemed responsive, the .proposal submitted by M&M
Concessions (`M&M") stood out with the most complete and thought-out operational and financial.
plan, addressing both the concession stand. operations as welt as~the rental of beach equipment.
SB Cafe's operational plan only addresses the food concession aspect and. didn't address the rental
. of beach equipment, while the proposal submitted by Esteban's Place contained no operational detail
.. ~~ ~ other than the approximate number of employees anticipated to operate each location.
., ~ 3
9
Commission Memo
', ~. ` RFP 05-09/10 -FOR THE MANAGEMENT AND OPERATION OF CONCESSION STANDS AND- 'BEACHFRONT
CONCESSIONS, LOCATED EAST OF COLLfNS-AVENUE,. AT BOTH 21ST STREET AND 46T"~ STREET
- . ~ May 12, 2010 -
M& M included a detailed operation plan that projects costs associated with pricing its menus and
beach rental equipment as well as their methodology for operating each location..
As noted in the following table, the proposed fee structure to the City varied significantly between the
,; ~ .three proposa'Is. Although M&M's Minimum Guarantee (MG) is $48,000 which. is lower than .that
proposed by SB Cafe and Esteban's .Place, it is proposing an initial Percentage of Gross (PG) of 20%
of its concession/food- and beverage sales and 30% of .its beach rental .receipts, which will then
a escalate based on the. actual volume of sales. SB .Cafe is proposing an MG of $50.,000 and a PG of
20% of it gross receipts, wvhile Esteban's Place is proposing one of two options, either a flat MG of
$55;101 with no PG and no escalation provision or an MG of $40,101 and a PG of 10% of its gross
'receipts; subject to a 5.5% escalation in the third year {subject to renewal of its contract).
In all three cases, the proposed fee structures are significantly .more realistic than what had been
s committed and agreed to originally by Toby's (the former Concessionaire), which included an MG of
' ~ ~ $120,501 and a PG of 31 % of gross receipts. In 2008, the former Concessionaire only grossed.
$172,000 in sales for its 21St Street and 46th Street locations combined. 1t should be noted that each
. of the three proposers were: provided with the former Concessionaire's monthly sales reports as a
basis for.structuring their respective fee proposals.
~ ..
After presentations conducted by all three (3) proposers, the Committee proceeded to deliberate and
evaluate each proposer according to the criteria as set forth in the RFP;-for a total of 100 points:
Proposed,Minimum Guarantee (MG) & Percentageof
_RFP 05-09-10 Gross PG Fee. Structure
.:
1 S year MG - $48,000 ($24,000 from concession operations
. and $24,000 from beach rental equipment); PG 20% from
. ~ concession operations and. 30% on beach rental equipment).
M&M Escalation rovision for PG based on annual sales revenues.
MG - $50,000 ~ annually or PG of 2Q% of gross receipts,
SB CAFE whichever is rester.
-~ Option 1 - MG $55,101 w/ no PG; or
Option 2 - MG $40,101 plus, a PG of 10% of gross receipts.
ESTEBAN'S PLACE Commencin in the third ear, .PG will increase. b 5.5%
Criteria Sco:rin We..'`ht°'
Financial capability to perfor-m the services. outlined in the RFP; and
A Proposed minimum guaranteed revenue or percentage;: of gross sales to the ~ 30
Cit
B Experience.and qualifications of the Proposer; Management team's 35
ex erience and uaiifications; and Past erformance. ~ ,
C Methodology and approach relative to ensuring successful Concessions; and 20
Customer Service Plans . ~ '
~~~ ~ .Past Performance`Based on Client Surveys ~~ ~ 15
D Volume and quality of surveys submitted by clients.
The Committee ,cored and ranked each proposer as~follows:
4
.: ~ ....Commission Memo
..
RFP 05-09/10 -FOR THE- MANAGEMENT AND OPERATION OF CONCESSION STANDS AND BEACNFRONT
CONCESSIONS, LO-GATED EAST OF COLLINS AVENUE, AT BOTH 21ST STREET AND 46T" STREET .
. May 12, 201.0- .
Based on the scores and rankings, the Committee members unanimously ranked M & M
:. ~ Concessions, Inc. as the top-ranked firm, and SB Cafe, as the second-ranked firm. A motion was
. ~ , presented -by Chairperson~Ana Cordero.,-seconded byKumar Prakash,-and unanimously approved by
the Committee.
The Committee recognized that M'&M presented the most complete and creative proposal, paired
` .with the operator's extensive experience and understanding of Miarni Beach business and local
operations.
M&M's owner, Mr. Wi cox, has over 30.years of experience combined in the beach concession and
food and .beverage business, a i of which has been on Miami Beach. His experience includes, but is
not limited to, operating Beaches Bar and Grill, the Tikki Hut Pooi Bar and the gift shop at the Days
` - ' ~. ~ `Inn Hotel at 43~d Street and Collins Avenue, operating the beach area concession at 23`d Street and
.Collins Avenue for the owners of the Da s .Inn, ownin and o eratin Free Spirits Sports Cafe, Liquor
Y ~9 P 9
Lounge, Dewey' Tavern, Ted's Hideaway, and Bar-B-Q Beach Restaurant.
GON~CLUS101~'
- The Administration recommends that the Mayor and Gity Commission adopt the attached
Resolution accepting the recommendation of the City Manager pursuant to Request for Proposals
(RFP) No. 05-09/10, fo-r the Management and Operation of Concession Stands and Beachfront
Concessions, located East of Collins Avenue, at both 21St Street and 46th Street; and authorizing
. the Administration to enter into negotiations with the top-ranked firm, M&M Concessions, lnc.;
should he Administration not be able to successfully negotiate an agreement with the top-ranked
firm, authorizing the Administration to negotiate with the second-ranked. firm, SB Cafe, LLC.; and
further authorizing. the Mayor and ,City Clerk to execute an agreement upon conclusion of
: _. _successful negotiations.
T`.\AGENDA\2010\May 12\Consent\RFP 05-09-10 For the Management and Operation of Concession Stands'-MEMO.doc
r. _
RFP 05-09-
10 Robert
Reboso John
Oldenbur ` Jennifer
Massolo Ana
Cordero ' Amani
A ers Prakash
Kumar -Aggregate _
Totals
'. M&M ~96 1 96 1 96 1 100 1 1-00 1 100 1 6 (1)
.. SB CAFE... 86 2 ~ 90 2 ~ 73 2 70 2 _ :80.2 83 3 13 (2)
ESTEBAN'S
_~ FLACE
82 3
~ 75 3
50 3
40 3
58 3
94 2 ,
17 3
5