2001-24646 Reso
RESOLUTION NO:
2001-24646
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A CONCESSION AGREEMENT BY AND BETWEEN
THE CITY OF MIAMI BEACH AND BOUCHER BROTHERS
MIAMI BEACH, LLC, FOR THE MANAGEMENT AND
OPERATION OF BEACHFRONT CONCESSIONS ON THE
BEACHES SEAWARD OF LUMMUS PARK, OCEAN TERRACE
AND NORTH SHORE OPEN SPACE PARK, MIAMI BEACH,
FLORIDA, IN ACCORDANCE WITH REQUEST FOR
PROPOSALS (RFP) NO. 22-00/01; SAID AGREEMENT
HAVING AN INTIAL TERM OF FIVE (5) YEARS,
COMMENCING ON NOVEMBER 5, 2001, AND EXPIRING
ON NOVEMBER 4, 2006, WITH AN OPTION TO RENEW
FOR AN ADDITIONAL FIVE (5) YEAR TERM, SUBJECT
TO THE RENEWAL TERMS PROVIDED IN THE AGREEMENT
WHEREAS, on October 2, 1985, the Mayor and City Commission
approved a Concession Agreement, dated November 7, 1985, between
the City 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, with a termination
date of November 4, 2000; and
WHEREAS, said Concession Agreement, was scheduled to expire on
November 4, 2000, and, as such, on October 18, 2000, the Mayor and
City Commission approved an amendment to the Concession Agreement,
providing in part for a one year extension, to expire on November
4, 2001, to allow for the issuance of a Request for Proposals (RFP)
for the future operation of beachfront concessions on the beaches
seaward of Lummus Park, Ocean Terrace and North Shore Open Space
Park; and
WHEREAS, on February 21, 2001, the Mayor and City Commission
authorized the issuance of said RFP No. 22-00/01and same was
subsequently issued; and
WHEREAS, on July 18, 2001, the Mayor and City Commission
authorized the Administration to negotiate with Boucher Brothers
Miami Beach, LLC as the successful proposer in response to the RFP;
and
WHEREAS, the Administration has successfully negotiated the
attached Concession Agreement with Boucher Brothers Miami Beach,
LLC, for the operation and management of beachfront concessions,
including beach equipment rentals, food and beverage sales, and
watersport rentals, on the beaches seaward of Lummus Park, Ocean
Terrace and North Shore Open Space Park; said Agreement commencing
on November 5, 2001, and expiring on November 4, 2006, with an
option to renew for an additional five (5) year term, subject to
the renewal terms contained in the Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
City Commission authorize the Mayor and City Clerk to execute the
attached Concession Agreement by and between the City of Miami
Beach and Boucher Brothers Miami Beach, LLC, for the management and
operation of beachfront concessions on the beaches seaward of
Lummus Park, Ocean Terrace and North Shore Open Space Park, Miami
Beach, Florida, in accordance with RFP No. 22-00/01; said Agreement
having an initial term of five (5) years, commencing on November 5,
2001, and expiring on November 4, 2006, with an option to renew for
an additional five (5) year term, subject to the renewal terms
contained in the Agreement.
PASSED AND ADOPTED THIS 17th day of
October
, 2001.
~rP~
1/J
Attest:
CITY CLERK
MAYOR
JMG:CMC:JD:rlr
T:\AGENDA\2001\SEPOSOl\REGULAR\BOUCHER.RES 9/14/01
AP"~_Al1O
FOAM. LANGuAGe
aFOREXECUTlON
/l J J U f)ull.-:.... "-IIf~ .1
/~~ .....
CITY OF MIAMI BEACH
m
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
COMMISSION MEMORANDUM
FROM:
Mayor Neisen O. Kasdin and
Members of the City Commission
Jorge M. Gonzalez '\. ~ ~
City Manager U~
DATE: October 17,2001
TO:
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE A CONCESSION
AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH
AND BOUCHER BROTHERS MIAMI BEACH, LLC, FOR THE
MANAGEMENT AND OPERATION OF BEACHFRONT
CONCESSIONS ON THE BEACHES SEAWARD OF LUMMUS
PARK, OCEAN TERRACE AND NORTH SHORE OPEN SPACE
PARK, MIAMI BEACH, FLORIDA, IN ACCORDANCE WITH
REQUEST FOR PROPOSALS (RFP) NO. 22-00/01; SAID
AGREEMENT SHALL HAVE AN INTIAL TERM OF FIVE (5)
YEARS, COMMENCING ON NOVEMBER 5, 2001, AND
EXPIRING NOVEMBER 4, 2006, WITH AN OPTION TO RENEW
FOR AN ADDITIONAL FIVE (5) YEAR TERM, AS PROVIDED IN
THE CONCESSION AGREEMENT.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
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 beachfront
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 that 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),
was scheduled to expire on November 4, 2000.
AGENDA ITEM If] c...
DATE It? - /7-eJ I
September 20, 2001
Commission Memorandum
Concession Agreement - Boucher Brother Miami Beach, LLC.
Page 2 of 8
On October 18, 2000, the Mayor and City Commission adopted Resolution No. 2000-
24137, approving Amendment NO.4 to the Concession Agreement, extending its term for
a period of one year, pending the issuance of a Request for Proposals (RFP), and
providing that Penrod Brothers operate a Pilot Concession Program on the beaches east
of North Shore Open Space Park and Ocean Terrace.
On February 21, 2001, the Mayor and City Commission authorized the Administration to
issue the RFP for the management and operation of beachfront concessions limited to the
beaches seaward of Lummus Park, Ocean Terrace and North Shore Open Space Park.
Said RFP was issued, three responsive proposals were received, and on July 18, 2001,
the Mayor and City Commission directed the Administration to negotiate with Boucher
Brothers Miami Beach, LLC. On September 20, 2001, the Mayor and City Commission
requested a deferral of the Agreement to allow for full board participation and with direction
to provide financing flexibility within the Agreement. The Administration has successfully
negotiated the attached Concession Agreement with Boucher Brothers, including
consideration of the following comments previously received from the City's Marine
Authority and Beach Preservation Committee, as well as comments from the Ocean Drive
Association and the Mayor and City Commission.
Marine Authoritv Recommendations
On August 23, 2001, the Marine Authority met, reviewed the watersports related section
of the proposed Concession Agreement. In keeping with their previous
recommendations, because of safety concerns, they continue to recommend that there
be no watersport channels south of 15th Street, and as such recommended that the
watersport component be deleted from the Concession Agreement. However, the
Authority went on to resolve, that in the event the City opted to include the Lummus
Park watersport channel, then the following language should be included in the
Concession Agreement:
. The maximum engine size of any rental motorized personal watercraft (PWC)
should not exceed 750 Cubic Centimeters (CCs); chase vessels should not exceed
1200 CCs. However, in the event the 750's were no longer manufactured then the
City Manager should have discretion on approving other comparable equipment
. As new fuel injected, four (4) stroke engines are developed and become available,
the concessionaires would have a two-year window to replace their watercraft with
the new models
. All tickets for rental of PWC should only be sold at hotels. No ticket sales on the
beach
September 20, 2001
Commission Memorandum
Concession Agreement - Boucher Brother Miami Beach, LLG.
Page 3 of 8
. Channel to be revocable at City Commission's option, or if there is a change in
policy
. That there be a maximum of six PWC for rent at any time
. One chase vessel for first four PWC and 2 chase vessels for five or more PWC
. Chase vessel(s) to be located at eastern end of channel, if any PWC are in the
water
. Ratio of employees to PWCs
. 2 PWC - 2 employees
. 3 to 4 PWC - 3 employees
. 5 to 6 PWC - 4 employees
. Concessionaire must complete a written report in the event of any accident or
collision involving a PWC and submit same to the Marine Patrol or Beach Patrol
. Channel to be located in the proximity of 13th Street
On September 11, 2001 the Marine Authority met again and while no formal action was
taken, many of their recommendations have been included in the negotiated Agreement.
Although the Authority recommended a maximum of 6 PWCs, the Agreement provides for
a maximum of 8 PWCs, but in that event Concessionaire is required to have no less than
3 employees on site.
Beach Preservation Committee Recommendations
On September 11, 2001, the Beach Preservation Committee met to specifically address
the Concession Agreement. The Committee voted to recommend that the Beachfront
Concession Agreement be modified to guarantee that sufficient portions of frontage
beach remain free of concession facilities and equipment, to assure unhindered access
and traditional uses of the beach to the public. On October 9, 2001, the Committee met
and revisited the chair deployment issue. Recommendations on chair deployment, as
well as previous recommendations related to general beach concession issues, are
outlined below:
. Beach Chair Deployment:
. a 100 foot wide buffer zone should be maintained to the north and to the
south of all lifeguard stands
. at the midpoint of the areas between 13th and 14'" Streets, and 9'" and 10'"
Streets, a 100 foot wide area shall be initially maintained free of chairs or
equipment, unless and until a demand is created
September 20, 2001
Commission Memorandum
Concession Agreement - Boucher Brother Miami Beach, LLC.
Page 4 of 8
. the southernmost and northernmost 50 feet of the Lummus beach
concession area shall not be encumbered by beach chairs or any other
equipment, except if specifically requested for use by a handicapped patron
. Watersport channels south of 15th Street should be prohibited, and as such
recommended that the watersport component be deleted from the Concession
Agreement
. Storage facilities for umbrellas and chair pads should be limited to horizontal
units measuring (4' high x 4'wide x 8' long)
Ocean Drive Association
The Ocean Drive Association recommended the following:
. Keep the watersport channel at the 9th Street location, where it currently exists
. Permit sale of limited sundry items
. No cooking on Lummus Beach
Hotel Association
At an unrelated workshop that was held to address beach concession issues that are
seaward of privately owned upland properties, the Hotel Association provided the following
recommendations related to beachfront concession operations:
. Chair deployment should not be limited nor restricted and be left to the sole discretion
of concessionaires to allow for greatest flexibility and provide for optimum service to
beach patrons
. Storage facilities should stand upright (vertical) (approx. 8' high x 8' wide x 10' long) to
provide for reduction in number of storage facilities and allow for maximum preservation
of equipment
Proposed Concession Agreement
Below is a listing of the salient points of the proposed Concession Agreement:
1. Execution Date: Date of adoption by the City Commission.
2. Commencement Date: November 5, 2001.
3. Concession Area(s): Includes the beaches east of Lummus Park, Ocean Terrace
September 20, 2001
Commission Memorandum
Concession Agreement - Boucher Brother Miami Beach, LLC.
Page 5 of 8
and North Shore Open Space Park and provides for 100 foot buffer zones adjacent
(to the north of and to the south of) to the lifeguard stands; said buffer areas will be
maintained free of equipment. Additionally, within the Lummus beach concession
area, at the midpoint of 13th and 14th Streets, and 9th and 10th Streets, a 100 foot
wide area will be initially maintained free of chairs or equipment, unless and until a
demand is created; and the southernmost and northernmost 50' of the Lummus
beach concession area, shall not be encumbered by beach chairs or any other
equipment, except if specifically requested for use by a handicapped patron.
4. Services to be provided:
. Beach Equipment Rental (to include the rental of beach chairs, umbrellas, sun
canopies, and chair pads)
. Food and Beverage Sale (Monty's Miami Beach, LLC is being approved as the
sub-concessionaire to provide food and beverage services). Menus of foods
and beverages to be sold and prices for same are attached as an exhibit to the
Concession Agreement, and must be approved by the City.
. Sundry Item Sale (types of items to be sold and prices for same are attached as
an exhibit to the Concession Agreement, and must be approved by the City.)
Note: this is an optional service which may be revoked at the City's discretion
. Watersport Equipment Rental (this shall include the rental of wave runners,
kayaks, banana boats, and para-sail rides)
Note: at this time the watersport concession is approved only for a channel to
be located in the proximity of 9th Street. Future watersport concessions at a
designated site(s) on Ocean Terrace and/or North Shore Open Space Park will
be subject to Marine Authority review and a community input process. The
rental of watersport equipment is also contemplated as an optional service and
may be revoked at the City's discretion.
5. Fees to the City:
. Beach Equipment/Food and Beverage: Concessionaire has agreed to pay to
the City twenty percent (20%) of its gross receipts, or a minimum guaranteed
amount of $412,500 per annum, whichever is greater. Said minimum guarantee
shall be paid on March 5, 2002, and on the anniversary date of the
Commencement Date each year thereafter, and shall be increased by 5% each
year.
. Optional Services (watersport rentals and sundry sales): Concessionaire
has agreed to pay to the City twenty percent (20%) of its gross receipts, or a
minimum guaranteed amount of $30,000 per annum, whichever is greater. Said
minimum guarantee shall be paid on March 5, 2001, and on the anniversary
September 20, 2001
Comm~&onMemomndum
Concession Agreement - Boucher Brother Miami Beach, LLC.
Page 6 of 8
date of the Commencement Date each year thereafter, and shall be increased
by 5% each year.
6. Term: Five (5) years, with a five (5) year option. In the fifth year of the Agreement,
the concessionaire shall provide notice to City and parties shall negotiate
exclusively with each other for a period of 60 days, to extend the term for the
additional five (5) year period on such reasonable terms and conditions, as mutually
agreed to, with exception of the financial terms which will be as follows if agreement
is reached on renewal:
. Minimum investment in capital of no less than $500,000 and not to exceed
$800,000.
. Beach equipment rental fees, with or without options, as applicable, will
commence at the greater of:
A) the 5th year minimum guarantee, escalated by 5%, or
B) the average annual rental paid during the first five (5) year term,
defined as "the new minimum guarantee".
The annual fee for the renewal term will be the greater of the A) the new
minimum guarantee or B) 20% of gross beach equipment rental receipts, with
or without options, escalated annually by 5% during the renewal term.
. Food and beverage rental fees will commence at the greater of:
A) the 5th year minimum guarantee, escalated by 5% or
B) the average annual rental paid during the first five (5) year term,
defined as "the new minimum guarantee".
The annual fee for the renewal term will be the greater of the A) the new
minimum guarantee or B) 20% of gross beach equipment rental receipts,
escalated annually by 5% during the renewal term.
7. Site Plan(s) for placement of beach equipment and maximum numbers: The
City shall approve site plans for placement of beach equipment, per Concession
Area, layouts are attached as exhibits to the Concession Agreement. Additionally,
in order to address, quantify, and be able to enforce "density issues," the
Concessionaire shall attach an exhibit delineating the maximum number of chairs
to be placed within a particular site, which address weekdays, weekends, and
holidays. Concessionaire shall be allowed a daily Set Up Period (anytime prior to
10:00 a.m. daily) during which time it will be allowed to set up to the maximum
number of equipment for a given area. In order to further address density concerns,
if 33% of concessionaire's beach equipment that is set up in a particular area, has
not been rented by 1 :00 p.m. on daylight savings time or 2:00 p.m. on standard
time, of the same day, Concessionaire shall remove non-rented equipment in
excess of the 33% vacancy factor.
September 20, 2001
Commission Memorandum
Concession Agreement - Boucher Brother Miami Beach, LLG.
Page 70f8
8. Design of Concession Facilities, Storage Facilities and Equipment: The design
of the facilities and equipment is attached to the Agreement and was reviewed by
the Design Review Board on September 14, 2001, and deferred to the October 16,
2001 meeting. As of the date of this writing the DRB had not yet met so a verbal
report will be provided to the City Commission. Nonetheless, Concessionaire must
obtain Design Review approval prior to the placement of any facilities on the beach.
Design staff level review approval has been granted for chairs, umbrellas,
dispensing/storage facilities but not for food and beverage dispensing facilities.
9. Cooking: As set forth by the Mayor and City Commission on September 20, 2001,
cooking and heating by Concessionaire will not be permitted in the Concession.
However, the Concessionaire is requesting clarification as to their ability to be
permitted to cook and heat in the North Shore Open Space Park and Ocean
Terrace Concession Area(s), throughout the initial term of the Agreement.
10. Financial wherewithal: Upon execution of this Agreement and in no event no later
than ten (10) days after execution, and until March 5, 2001, the Concessionaire will
provide: A) $412,500 Letter of Credit; B) proof of equipment purchases, and; C)
letter of commitment from a financial institution evidencing the financing ability
11. Minimum Financial Contribution: On or before March 5, 2002, a minimum capital
investment of $800,000 in equipment purchases and/or leases.
12. Payment and Performance Bond: Upon Commencement Date and throughout the
term of the Agreement, the Concessionaire will provide a $200,000 performance
bond or Letter of Credit.
13. Assignments/transfers in ownership: No assignment of this Agreement will be
permitted. Transfers in ownership not exceeding 33.4% will require prior approval
of the City Manager, and if exceeding 33.4% will require prior approval by the City
Commission.
14. Maintenance: Concessionaire shall be responsible for the daily maintenance and
clean up of all Concession Areas and the adjacent dunes.
15. Hours of Operation: The concession operation will open no earlier than one (1)
hour after sunrise and close no later than one (1) hour before sunset.
September 20, 2001
Commission Memorandum
Concession Agreement - Boucher Brother Miami Beach, LLC.
Page 80f8
16. Special Events: The City will continue to issue permits for special events and if
issued within the Concession area, if the permittee does not utilize the
Concessioniare for food and beverage services, then the special event permittee
will be required to remit 20% of the gross revenues to the City. The City agrees to
remit 30% of said amount to the Concessionaire. If the permittee utilizes the
Concessionaire for food and beverage services, then the Concessionaire will remit
the required 20% fee for said service. City reserves the right to displace
concessionaire for City produced special events and/or City produced productions.
In light of the pending response from the State of Florida regarding proposed
comprehensive amendments to the Rules and Regulations for Beachfront Concession
Operations, the proposed Agreement includes language requiring that Boucher Brothers
conform with any action or determinations made by the State.
The Administration recommends that the Mayor and City Commission approve the
attached Concession Agreement with Boucher Brothers Miami Beach, LLC, for the
operation and management of beachfront concessions on the beaches seaward of
Lummus Park, Ocean Terrace and North Shore Open Space Park.
JMG:CMC~
T:\AGENDA \2001'\t:cT1701 IREGULARIBOUCHER.MEM