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2011-27577 Reso RESOLUTION NO. 2011 -27577 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, ON A MONTH -TO -MONTH BASIS UNTIL SUCH TIME THAT THE ADMINISTRATION FULLY EVALUATES THE POTENTIAL OPTION FOR CORPORATE . SPONSORSHIP AND EITHER APPROVES A SPONSORSHIP AGREEMENT OR A NEW CONTRACT IS AWARDED VIA THE COMPETITIVE BIDDING PROCESS, THE FOLLOWING LEASE SCHEDULES WITH SIEMENS FINANCIAL SERVICES FOR TURF EQUIPMENT, AS SPECIFIED HEREIN, FOR THE MIAMI BEACH GOLF CLUB, PURSUANT TO SIEMENS MASTER LEASE AGREEMENT WITH THE CITY: 1) LEASE SCHEDULE #729 - 0051308 -001, RETROACTIVE TO MAY 30, 2010; 2) LEASE SCHEDULE #729- 0051308 -002, RETROACTIVE TO JULY 17, 2010; 7 AND 3) LEASE SCHEDULE #729- 0051308 -003, RETROACTIVE TO JANUARY 10, 2011; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ALL LEASE SCHEDULES WITH SIEMENS FINANCIAL SERVICES; • AND FURTHER AUTHORIZING THE CITY MANAGER, AT HIS DISCRETION, TO TERMINATE THE MASTER AGREEMENT AND /OR SCHEDULES. WHEREAS, the City's current lease(s) agreement with Siemens Financial Services, for various pieces of Toro turf maintenance equipment used to maintain the golf course at Miami Beach Golf Club, have expired or are nearing expiration; and WHEREAS, in order to continue the golf course operations, the Administration is seeking the approval to proceed on a month -to -month basis under the leases until such time as either a sponsorship agreement is approved, or a new contract is awarded via the competitive bidding process; and WHEREAS, it should be noted that the issuance of an Invitation To Bid ("ITB") for the golf course equipment is being temporarily delayed in order to permit the Administration to fully examine a potential corporate sponsorship opportunity that could provide the required equipment at or below the competitive market price while providing the City revenue as a result of an agreed upon sponsorship package; and WHEREAS, the current master lease agreement is pursuant to State of Florida Contract No. 515- 630 -06 -1, and per the following three Lease Schedules #729- 0051308 -001 , 002 and 003, for golf course turf grooming equipment; and WHEREAS, the Parks & Recreation Department is currently working workin with the Procurement Division on specifications for an ITB to provide a Purchase Price, and /or a Fair Market Value Lease Option for 48- months, should that be necessary for any or all of the required equipment; and • WHEREAS, in order to maintain the existing service level, it is recommended that the Mayor and City Commission extend the current lease agreements with Siemens Financial Services, which expired on May 30, 2010, July 17, 2010, and January 11, 2011, on a month -to- month basis, terminable at the discretion of the City Manager, until such time that the Administration can fully vet the potential options of the corporate sponsorship opportunity and pp Y once determined and if necessary, initiate a competitive bidding process that will conclude with an award of an agreement to provide the balance of any golf course equipment needed for the operation of the City golf course(s); and WHEREAS, this process may take from three (3) to six (6) months endin progress of p gp g the sponsorship opportunity and any required ITB process, including City Commission award. i NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve, on a month -to- month basis until such time that the Administration can fully evaluate the potential option for corporate sponsorship, the following lease schedules with Siemens Financial Services, for turf equipment as specified herein, for the Miami Beach Golf Club, pursuant to Siemens master lease agreement with the City: 1) lease schedule #729- 0051308 -001 retroactive to May 30, 2010; 2) lease schedule #729- 0051308 -002, retroactive to July 17, 2010; and 3) lease schedule #729 - 0051308 -003, retroactive to January 10, 2011; and hereby authorize the Mayor and City . Clerk to execute all lease schedules with Siemens Financial Services; and further authorize the City Manager, at his discretion, to terminate the master lease agreement and/or schedules. AND FURTHER AUTHORIZE THE CITY MANAGER AT HIS DISCRETION. PASSED and ADOPTED this gl day of January, 2011. Y rY, ATTEST: 10 jej, (AkkA 41,1 A 1 41 _ / G am- d a....,........ M A TI HERRE - A BOWER MAYOR ROBERT PARCHER, CITY CLERK T:\AGENDA\2011 \1 -19 -11 \Siemens Lease to Extend Golf Equipment Leases on Month -to -Month Basis- Resolution.doc APPROVED AS TO FORM & LANGUAGE _ g di FO' ELUTION .•• ) ) � Ittomey • = to 1:5( COMMISSION ITEM SUMMARY Condensed Title: A Resolution Approving On A Month -To -Month Basis Until Such Time That The Administration Can Fully Evaluate The Potential Option For Corporate Sponsorship, The Following Lease Schedules With Siemens Financial Services, For Turf Equipment As Specified Herein, For The Miami Beach Golf Club, Pursuant To Siemens Master Lease Agreement With The City: 1) Lease Schedule #729- 0051308 -001, Retroactive To May 30, 2010; 2) Lease Schedule #729 - 0051308 -002, Retroactive To July 17, 2010; And 3) Lease Schedule #730 - 0051308 -003, Retroactive To January 11, 2011; Authorize The Mayor And City Clerk To Execute All Lease Schedules With Siemens Financial Services; And Further Authorize The City Manager At His Discretion to terminate the master lease agreement and /or schedules. Key Intended Outcome Supported: Increase Satisfaction with Recreational Programs Supporting Data (Surveys, Environmental Scan, etc.): Miami Beach Customer Survey indicates 84.9% of residents rated the City's Recreation programs as either excellent or good. Issue: 1 Shall the Mayor and City Commission adopt the resolution? I Item Summary /Recommendation: The City's current lease(s) agreements with Siemens Financial Services, for various pieces of Toro turf maintenance equipment used to maintain the golf course at Miami Beach Golf Club, have expired. It °should be noted that the issuance of ITB for the golf course equipment is being temporarily delayed in order to permit the Administration to fully examine a potential corporate sponsorship opportunity that could provide some or all of the required equipment at or below the competitive market price, while providing the City revenue as a result of an agreed upon sponsorship package. In order to maintain the existing service level and continue the golf course operations, it is recommended that the Mayor and City Commission extend the current agreement with Siemens Financial Services, which expires in January, 2011, on a month -to -month basis, terminable at the discretion of the City Manager, until such time that the Administration can fully vet the potential options of the corporate sponsorship opportunity. In addition and if necessary, staff will initiate a competitive bidding process that will conclude with an award of an agreement to provide some or all of any golf course equipment needed for the operation of the City golf course(s) that may not be available through the corporate sponsor. This process may take from three (3) to six (6) months pending progress of the final negotiation and approval of the potential sponsorship agreement and any ITB process, including City Commission award. , The Administration recommends the Commission adopt the attached resolution. Advisory Board Recommendation: Financial Information: Source of Amount Account Funds: 1 Parks & Recreation Department, operations budget account number $35,200 011- 0970 - 000323. 2 3 OBPI Total $35,200 Financial Impact Summary: The funding is allocated in the current Parks and Recreation Department's budget for golf course operations. City Clerk's Office Legislative Tracking: Kevin Smith, Parks & Recreation Director Sign -Offs: Department Director A si - nt Ci Manager City Manager er _ - g _... KS HMF JMG 4111110- T:\AGENDA\2011 \1 -19 -11 \Siemens Lease to Exten • Golf Equipment Leases on Month- .-Month Basis- Summary.do . AGENDA ITEM C 71 OA, "' DATE 14 1/ o 0 s 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: Jorge M. Gonzalez, City Manage DATE: January 19, 2011 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING ON A MONTH -TO- MONTH BASIS UNTIL SUCH TIME THAT THE ADMINISTRATION CAN FULLY EVALUATE THE POTENTIAL OPTION FOR CORPORATE SPONSORSHIP, THE FOLLOWING LEASE SCHEDULES WITH SIEMENS FINANCIAL SERVICES, FOR TURF EQUIPMENT AS SPECIFIED HEREIN, FOR THE MIAMI BEACH GOLF CLUB, PURSUANT TO SIEMENS MASTER LEASE AGREEMENT WITH THE CITY: 1) LEASE SCHEDULE #729 - 0051308 -001, RETROACTIVE TO MAY 30, 2010; 2) LEASE SCHEDULE #729 - 0051308 -002, RETROACTIVE TO JULY 17, 2010; AND 3) LEASE SCHEDULE #729- 0051308 -003, RETROACTIVE TO JANUARY 10, 2011; AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE ALL LEASE SCHEDULES WITH SIEMENS FINANCIAL SERVICES; AND FURTHER AUTHORIZE THE CITY MANAGER AT HIS DISCRETION TO TERMINATE THE MASTER AGREEMENT AND /OR SCHEDULES. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING Funding for the Lease of golf course turf maintenance equipment for the Miami Beach Golf Course is available in the Parks & Recreation Department, operations budget account number 011- 0970 - 000323. ANALYSIS The City's current lease(s) agreement with Siemens Financial Services, for various pieces of Toro turf maintenance equipment used to maintain the golf course at Miami Beach Golf Club, have expired or are nearing expiration. In order to continue the golf course operations the Administration is seeking the approval to proceed on a month-to- month extension until such time that a new contract is awarded via competitive bidding process. It should be noted that the issuance of ITB for the golf course equipment is being temporarily delayed in order to permit the Administration to fully examine a potential corporate sponsorship opportunity that could provide some or all of the required Commission Memorandum January 19, 2010 Siemens Lease Agreement Page2of2 equipment at or below the competitive market price, while providing the City revenue as a result of an agreed upon sponsorship package. The current lease agreement is pursuant to State of Florida Contract No. 515- 630 -06 -1, and per the following three Lease Schedules #72900513808 -001, 002 and 003, for golf course turf grooming equipment. The first lease is #729 - 0051308 -001, for three (3) each Toro Mid Duty Utility vehicles ($458.93 /month), for a 48- month lease period covered for May 30, 2006, thru May 30, 2010. The second lease is #729- 0051308 -002, for one (1) each Toro Workman model #2110, Mid Duty Utility Vehicle; and two (2) each Toro Ground Master #328 ($850.21/month), for a 48 -month lease period covered for July 17, 2006, thru July 17, 2010) The third is #730- 0051308 -003, for four (4) each Toro Workman mid duty utility vehicles; two (2) each Toro Sand Pro Bunker Rakes; three (3) each Toro Greens - master Triplex Riding Greens - mower; four (4) each Greens - masters flex Premium Putting Green Mower; four (4) each Toro Trans Pro 80 Walking Greens -mower trailer; one (1) each Toro Versa -Vac Sweeper; two (2) each Salsco Roller with Trailer; and one (1) each Toro Pro Core Aerator ($4,551.50 /month), for a 48 -month lease period covered from January 17, 2007, thru January 17, 2011. The Parks & Recreation Department is currently working with the Procurement Division on specifications for an Invitation to Bid to provide a Purchase Price, and or a Fair Market Value Lease Option for 48- months to be issued should a corporate sponsorship agreement not be recommended or approved, or for any particular pieces of equipment that cannot or will not be included in a sponsorship agreement (e.g. company cannot provide comparable equipment or at a competitive price). CONCLUSION In order to maintain the existing service level, it is recommended that the Mayor and City Commission extend the current agreement with Siemens Financial Services, which expires in January, 2011, on a month -to -month basis, terminable at the discretion of the City Manager, until such time that the Administration can fully vet the potential options of the corporate sponsorship opportunity. In addition and if necessary, staff will initiate a competitive bidding process that will conclude with an award of an agreement to provide the balance of the golf course equipment needed for the operation of the City golf course(s) that may not be available through the corporate sponsor. This process may take from three (3) to six (6) months pending progress of the sponsorship opportunity and the ITB process, including City Commission award. J M G/H M F/G L/KS /cd T:WGENDA\2011 \1 -19 -11 \SiemensMemoFinal.doc