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2015-28996 Reso RESOLUTION NO. 2015-28996 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADMINISTRATION TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR THE MANAGEMENT AND OPERATION OF CONCESSION STAND BUILDINGS AND BEACHFRONT CONCESSION AREAS, LOCATED ADJACENT TO THE PUBLIC PARKING LOTS AT 21ST AND 46TH STREETS. WHEREAS, on October 14, 2009, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets; and WHEREAS, RFP No. 05-09/10 was issued on October 20, 2009, and proposals were sent or provided to over eighty-five (85)firms and concessionaires; and WHEREAS, on May 12, 2010, the City Commission adopted Resolution No. 2010-27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, Inc. ("Concessionaire"); and further authorized the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration; and WHEREAS, the City and Concessionaire executed a Concession Agreement, dated November 22, 2010, for an initial term of two (2) years commencing on November 1, 2010 and ending on October 31, 2012,with three(3) renewal options for one(1)year each (the Agreement); and WHEREAS, Concessionaire exercised all three (3) of its renewal options and the Agreement is scheduled to end on October 31, 2015; and WHEREAS, Concessionaire submitted a letter to the City requesting to extend the Agreement for a period of five (5) years, which would entail a 5/7m waiver of the competitive bidding requirement; and WHEREAS, in the event the City Commission does not approve the waiver of the competitive bidding requirement, the Administration would recommend that the City Commission approve the issuance of a new Request for Proposals (RFP), for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby approve and authorize the Administration to issue a Request for Proposals (RFP) for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. PASSED and ADOPTED this 15 day of P r i / 2015. ATTEST: 41101,- 411' ?AS tr , fael E. Granado, City !`lerk Philip 'vi =' - or Bel% T:AGENDA g rill.CED\ ' ••�rcoidT�,�11���,x RESO 2(4-15-15).docx ,�e INCORP ORATED •h= 4 y �N. s 411'<�l 2 6����.. APPROVED AS TO FORM & LANGUAGE &FOR XEC TION (.2g1 ' — 4 - - City Attorney " Date MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members of the City Commission FROM: Jimmy Morales, City Manager a1 DATE: April 15, 2015 SUBJECT: A DISCUSSION REGARDING THE MANAGEMENT AND OPERATION OF CONCESSION STAND BUILDINGS, AND BEACHFRONT CONCESSION AREAS, CURRENTLY OPERATED BY TIM WILCOX, INC. ("CONCESSIONAIRE"), LOCATED ADJACENT TO THE PUBLIC PARKING LOTS AT 21ST AND 46TH STREETS. ADMINISTRATION RECOMMENDATION Adopt either Resolution A or Resolution B, attached hereto and incorporated herein by reference. BACKGROUND On October 14, 2009, the City Commission authorized the issuance of a Request for Proposals (RFP)to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. RFP No. 05-09/10 was issued on October 20, 2009, and proposals were sent or provided to over eighty-five (85)firms and concessionaires. On May 12, 2010, the City Commission adopted Resolution No. 2010-27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, Inc.; and further authorized the Mayor and City Clerk to execute a concession agreement (the Agreement) upon completion of successful negotiations by the Administration. ANALYSIS The Agreement contains the following material terms: Concession Area: Concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets Initial Term: Two (2) years commencing on November 1, 2010, and ending on October 31, 2012 Renewal Options: Three (3) renewal options for one (1) year each (Note: the third, and last, renewal option will expire on October 31, 2015). I Concession Fee: A percentage of gross sales exceeding $250,000 as follows: Agenda Item 9'E Date MS' Commission Memorandum Tim Wilcox, Inc.-Beachfront Concession Agreement April 15, 2015 Page 2 of 3 Gross Receipts PG $250,000 26% $300,000 27% $350,000 28% $400,000 29% $450,000 30% Minimum Guarantee: Forty eight thousand dollars ($48,000) annually, paid at the beginning of each contract year For the first four (4) years of the Agreement, Concessionaire's gross sales, at each concession locations, are itemized in the following chart: Contract 21st Street 46th Street Gross Year Period Concession Chairs Concession Chairs Sales 1* 11/10- 10/11 73,124 59,463 18,933 16,836 168,356 2 11/11-10/12 50,893 79,307 29,883 42,140 202,224 3 11/12-10/13 61,198 96,629 19,535 38,047 215,408 4 11/13- 10/14 100,534 133,911 18,042 29,465 281,952 285,750 369,310 86,393 126,489 867,941 655,060 212,881 I *Reflects Nine(9) Months of Sales Due to Delayed Opening For the first four(4) years of the Concession Agreement, Concessionaire's gross sales, and the corresponding fees paid to the City, are illustrated in the following chart: (%of Gross Contract Gross Minimum Over 250K) Total Year Period Sales %Increase Guarantee 26% Rent 1* 11/10-10/11 168,356 - 48,000 0 48,000 2 11/11-10/12 202,224 20% 48,000 0 48,000 3 11/12-10/13 215,408 7% 48,000 0 48,000 4 11/13-10/14 281,952 31% 48,000 8,308 56,308 867,941 200,308 *Reflects Nine(9) Months of Sales Due to Delayed Opening Concessionaire is currently in its final renewal term, ending on October 31, 2015, and has submitted a letter to the City (attached hereto as "Exhibit A"), requesting to extend the concession agreement for a period of five (5)years. Actually, since the Agreement is in its final renewal term, the Concessionaire's request must entail negotiation of a new concession agreement. In the event the City Commission agrees to waive the competitive bidding requirement and grant Concessionaire a new Agreement, the City Manager would recommend such waiver subject to said new agreement containing the following minimum terms: Commission Memorandum Tim Wilcox, Inc.—Beachfront Concession Agreement April 15, 2015 Page 3 of 3 • Term: Initial three (3) year term, with two (2) one (1) year renewal options, at the City's sole discretion; • Minimum Guarantee: $65,000 annually, payable in equal quarterly installments of $16,250 each; and • Concession Fees: Gross Percentage of Receipts Gross Receipts $0-$250,000 26% $250,001-$300,000 27% $300,001-$350,000 28% $350,001-$400,000 29% $400,001 and over 30% Each incremental increase in Gross Receipts shall result in the corresponding percentage rate contained above. For example, if Concessionaire's Gross Receipts are $325,000, the Concession Fee paid for the first$250,000 shall be 26% ($65,000), the Concession Fee paid for the next$50,000 shall be 27% ($13,500) and the Concession Fee paid for the last $25,000 shall be 28% ($7,000), resulting in a total Concession Fee of$85,500. In the alternative, if the City Commission elects not to waive the competitive bidding requirement, the Administration seeks authorization to prepare and issue a Request for Proposals for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the Public Parking Lots at 21st and 46th Streets. The Finance and Citywide Projects Committee (FCWPC) considered this matter at its March 2, 2015 meeting and referred the matter to the Commission without a recommendation. CONCLUSION AND RECOMMENDATION The Administration seeks a recommendation from the City Commission regarding the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the Public Parking Lots at 21st and 46th Streets, and recommends that the Mayor and City Commission authorize the Administration to negotiate a new concession agreement with Concessionaire, pursuant to Resolution A; or, in the alternative, authorize the Administration to pursue a Request for Proposals, pursuant to Resolution B. JLM/KGB/MAS/MMM Exhibits: A Letter From Concessionaire Resolution A Resolution B T:\AGENDA\20151ApriRTCED1Tim Wilcox\Tim Wilcox MEMO(4-15-15).docx Exhibit A February 17,2015 Dear Mr. Morales, I would like to request that my beach concession agreement be renewed for an additional five years. My contract expires in October 31,2015. I feel that we are just now capturing the progress of the Collins Park neighborhood. When we started it was a real construction zone with very little parking. In the last 18 months as parking and hotel rooms have come on line our business also improved,as well as the rent we pay to the city. We had 30 percent growth last year and expect the same for period this year. I will be speaking at the finance committee on Monday where I will lay out a detailed plan for growing the business over the next five years. My company has worked hard to give the beach goers a first class experience when they come to use the beach at 22nd street and 45 street.Still 45 street Is very challenging due to the beach erosion and lack of parking. At this time I feel we are the best company for this Job.We have gotten to know these beaches so well over the last five years and have great ideas to continue growing the beach experience.We have reinvested in equipment and our constantly improving our customer service experience. If you would like to meet to discuss anything about this agreement or my projections for the future growth of these concessions please feel free to contact me. I can be reached anytime at 305-970-7147 . Sincer: Yours i • Ti othy W cox RESOLUTION A RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER AND WAIVING, BY 5/7TH VOTE,THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY,AND AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A CONCESSION AGREEMENT, BASED UPON THE MINIMUM TERMS SET FORTH IN THIS RESOLUTION, BETWEEN THE CITY AND TIM WILCOX, INC., FOR THE MANAGEMENT AND OPERATION OF CONCESSION STAND BUILDINGS AND BEACHFRONT CONCESSION AREAS, LOCATED ADJACENT TO THE PUBLIC PARKING LOTS AT 21ST AND 46T" STREETS; AND IF SUCCESSFUL, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE AGREEMENT. WHEREAS, on October 14, 2009, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets; and WHEREAS, RFP No. 05-09/10 was issued on October 20, 2009, and proposals were sent or provided to over eighty-five (85)firms and concessionaires; and WHEREAS, on May 12, 2010, the City Commission adopted Resolution No. 2010-27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, Inc. (Concessionaire); and further authorized the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration; and WHEREAS, the City and Concessionaire executed a concession agreement, dated November 22, 2010, for an initial term of two (2) years commencing on November 1, 2010 and ending on October 31, 2012, with three (3) renewal options for one (1)year each (the Agreement); and WHEREAS, Concessionaire exercised all three(3) of its renewal options, and the Agreement is scheduled to end on October 31, 2015; and WHEREAS, Concessionaire submitted a letter to the City requesting to extend the Agreement for a period of five (5)years; and WHEREAS, the Administration submitted Concessionaire's request to the Finance and Citywide Projects Committee (FCPC) at its March 2, 2015 meeting, and the FCPC referred the request to the City Commission; and WHEREAS, in the event the City Commission agrees to waive the competitive bidding requirement and authorize the Administration to negotiate a new agreement with Concessionaire, the City Manager would recommend such waiver subject to the new agreement containing the following minimum terms: • Term: Initial three (3) year term, with two (2) one (1) year renewal options, at the City's sole discretion; • Minimum Guarantee: $65,000 annually, payable in equal quarterly installments of $16,250 each; and • Concession Fees, as follows: Gross Percentage of Receipts Gross Receipts $0-$250,000 26% $250,001-$300,000 27% $300,001-$350,000 28% $350,001-$400,000 29% $400,001 and over 30% NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby accept the recommendation of the City Manager, and waive, by 517th vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City, and authorize the Administration to negotiate a new concession agreement, based upon the minimum terms set forth in this Resolution, between the City and Tim Wilcox, Inc., for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th streets; and if successful, authorize the City Manager and City Clerk to execute the Agreement. PASSED and ADOPTED this day of 2015. ATTEST: Rafael E. Granath), City Clerk Philip Levine, Mayor T:\AGENDA\2015Wpril\TCED\Tim Wilcox\Tim Wilcox RESO 1(4-15-15).docx RESOLUTION B RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADMINISTRATION TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR THE MANAGEMENT AND OPERATION OF CONCESSION STAND BUILDINGS AND BEACHFRONT CONCESSION AREAS, LOCATED ADJACENT TO THE PUBLIC PARKING LOTS AT 21sT AND 46TH STREETS. WHEREAS, on October 14, 2009, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets; and WHEREAS, RFP No. 05-09/10 was issued on October 20, 2009, and proposals were sent or provided to over eighty-five (85)firms and concessionaires; and WHEREAS, on May 12, 2010, the City Commission adopted Resolution No. 2010-27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, Inc. ("Concessionaire"); and further authorized the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration; and WHEREAS, the City and Concessionaire executed a Concession Agreement, dated November 22, 2010, for an initial term of two (2) years commencing on November 1, 2010 and ending on October 31, 2012, with three(3) renewal options for one (1)year each (the Agreement); and WHEREAS, Concessionaire exercised all three (3) of its renewal options and the Agreement is scheduled to end on October 31, 2015; and WHEREAS, Concessionaire submitted a letter to the City requesting to extend the Agreement for a period of five (5) years, which would entail a 5/7th waiver of the competitive bidding requirement; and WHEREAS, in the event the City Commission does not approve the waiver of the competitive bidding requirement, the Administration would recommend that the City Commission approve the issuance of a new Request for Proposals (RFP), for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby approve and authorize the Administration to issuance a Request for Proposals (RFP) for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. PASSED and ADOPTED this day of 2015. ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor T:AGENDA120151Apri11TCED\Tim Wilcox1Tim Wilcox RESO 2(4-1 5-15).docx COMMISSION ITEM SUMMARY Condensed Title: A discussion regarding the management and operation of concession stand buildings, and beachfront concession areas, currently operated by Tim Wilcox, Inc. ("Concessionaire), located adjacent to the public parking lots at 21st and 46th Streets. Key Intended Outcome Supported: N/A Supporting Data(Surveys,Environmental Scan,etc.): N/A Item Summary/Recommendation: On October 14, 2009,the City Commission authorized the issuance of a Request for Proposals(RFP)to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. RFP No. 05-09/10 was issued on October 20, 2009,and proposals were sent or provided to over eighty-five(85)firms and concessionaires. On May 12, 2010, the City Commission adopted Resolution No. 2010-27391, accepting the recommendation of the City Manager pertaining to the ranking of firms;authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, Inc.; and further authorized the Mayor and City Clerk to execute a concession agreement upon completion of successful negotiations by the Administration. The concession agreement was for an initial term of two(2)years, commencing on November 1,2010 and terminating on October 31, 2012, with three (3) additional one (1) year renewal terms. Concessionaire is currently in its final renewal term, commencing on November 1, 2014 and ending on October 31, 2015, and has requested an additional five(5)year extension. Concessionaire currently pays a concession fee, based on a percentage of gross sales, ranging from 26% to 30%, including a minimum guarantee of$48,000 annually. In the event the City Commission agrees to waive the competitive bidding requirement and grant Concessionaire a new agreement,the City Manager would recommend such waiver subject to said new agreement containing: 1)a term of three (3) years with two (2) additional one (1) years renewal terms, at the City's sole discretion, 2) a minimum guarantee of $65,000 annually and 3)a revised schedule of percentage rent resulting in additional fees to the City. In the alternative, if the City Commission elects not to waive the competitive bidding requirement,the Administration seeks authorization to prepare and issue a Request for Proposals for the management and operation of concession stand buildings and beachfront concession areas,located adjacent to the Public Parking Lots at 21st and 46th Streets. The Administration seeks a recommendation from the City Commission regarding the management and operation of concession stand buildings and beachfront concession areas,located adjacent to the Public Parking Lots at 21st and 46th Streets,and recommends that the Mayor and City Commission authorize the Administration to negotiate a new concession agreement with Concessionaire;or,in the alternative,authorize the Administration to pursue a Request for Proposals. Advisory Board Recommendation: N/A Financial Information: Source of Amount Account Funds: 1 N/A Financial impact Summary: City Clerk's Office Legislative Tracking: Max Sklar,ext.6116 Sign-Offs: Department Director Assistant City Manager City Manager MAS KGB JLM T.\AGENDA\2015\April\TCED\Tim Wilcox\Tim Wilcox SUM(4-15-15).docx tiA MIAMIBEACH AGENDA ITEM, DATE RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER AND WAIVING, BY 517TH VOTE,THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY,AND AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A CONCESSION AGREEMENT, BASED UPON THE MINIMUM TERMS SET FORTH IN THIS RESOLUTION, BETWEEN THE CITY AND TIM WILCOX, INC., FOR THE MANAGEMENT AND OPERATION OF CONCESSION STAND. BUILDINGS AND BEACHFRONT CONCESSION AREAS, LOCATED ADJACENT TO THE PUBLIC PARKING LOTS AT 21ST AND 46TH STREETS; AND IF SUCCESSFUL, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE AGREEMENT. WHEREAS, on October 14, 2009, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets; and WHEREAS, RFP No. 05-09/10 was issued on October 20, 2009, and proposals were sent or provided to over eighty-five (85)firms and concessionaires; and WHEREAS, on May 12, 2010, the City Commission adopted Resolution No. 2010-27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, Inc. (Concessionaire); and further authorized the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration; and WHEREAS, the City and Concessionaire executed a concession agreement, dated November 22, 2010, for an initial term of two (2) years commencing on November 1, 2010 and ending on October 31, 2012,with three (3) renewal options for one (1) year each (the Agreement); and WHEREAS, Concessionaire exercised all three (3) of its renewal options, and the Agreement is scheduled to end on October 31, 2015; and WHEREAS, Concessionaire submitted a letter to the City requesting to extend the Agreement for a period of five(5) years; and WHEREAS, the Administration submitted Concessionaire's request to the Finance and Citywide Projects Committee (FCPC) at its March 2, 2015 meeting, and the FCPC referred the request to the City Commission; and WHEREAS, in the event the City Commission agrees to waive the competitive bidding requirement and authorize the Administration to negotiate a new agreement with Concessionaire, the City Manager would recommend such waiver, subject to the new agreement containing the following minimum terms: • Term: Initial three (3) year term, with two (2) one (1) year renewal options, at the City's sole discretion; • Minimum Guarantee: $65,000 annually, payable in equal quarterly installments of$16,250 each; and • Concession Fees, as follows: Gross Percentage of Receipts Gross Receipts $0-$250,000 26% $250,001-$300,000 27% $300,001-$350,000 28% $350,001-$400,000 29% $400,001 and over 30% NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby accept the recommendation of the City Manager, and waive, by 517th vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City, and authorize the Administration to negotiate a new concession agreement, based upon the minimum terms set forth in this Resolution, between the City and Tim Wilcox, Inc., for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th streets; and if successful, authorize the City Manager and City Clerk to execute the Agreement. PASSED and ADOPTED this day of 2015. ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor T:\AGENDA12015 April\TCED\Tim Wilcox\Tim Wilcox RESO 1 (4-15-15).docx APPROVED AS TO FORM & LANGUAGE FO : ECU ION 4- ( - (5 City Attorney h. 'N Date