2001-24678 Reso 1
RESOLUTION NO:
2001-24678
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, WAIVING BY
Snths VOTE, THE COMPETITIVE BIDDING REQUIREMENT,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST
OF THE CITY, AND APPROVING A CONCESSION
AGREEMENT BY AND BETWEEN THE CITY OF MIAMI
BEACH AND PENROD BROTHERS, INC., FOR THE
MANAGEMENT AND OPERATION OF BEACH FRONT
CONCESSIONS ON THE BEACHES SEAWARD OF PIER
PARK, MIAMI BEACH, FLORIDA, THE TERM OF WHICH
SHALL BE ON A MONTH-TO-MONTH BASIS, AND
TERMINABLE WITHOUT CAUSE AND FOR CONVENIENCE,
WITH THIRTY (30) DAYS WRITTEN NOTICE, AT THE
CITY'S DISCRETION; FURTHER AUTHORIZING THE
ADMINISTRATION AND THE CITY ATTORNEY'S OFFICE
TO NEGOTIATE SAID CONCESSION AGREEMENT WITH
PENROD BROTHERS AND AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE SAME; SAID
CONCESSION AGREEMENT, IN ADDITION TO BEING
TERMINABLE FOR CONVENIENCE, AT THE CITY'S
DISCRETION, TO INCLUDE THE FOLLOWING TERMS AND
CONDITIONS: CONCESSIONAIRE SHALL ACKNOWLEDGE
AND AGREE TO BE BOUND BY THE CITY'S RULES AND
REGULATIONS FOR BEACH FRONT CONCESSION
OPERATIONS, AS AMENDED; CONCESSIONAIRE SHALL
OBTAIN ANY AND ALL NECESSARY LICENSES AND
PERMITS REQUIRED FOR ITS CONCESSION
OPERATIONS; CONCESSIONAIRE TO PAY CITY
ANNUALLY THE GREATER OF $10,000, OR 20% OF THE
GROSS REVENUES IT DERIVES FOR THE PRIVILEGE OF
OPERATING THE CONCESSION; AND CONCESSIONAIRE
TO COMPLY WITH THE CITY'S INSURANCE AND
INDEMNIFICATION REQUIREMENTS.
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
November4,2000;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,
which expired 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. 22-00/01 and same was subsequently issued without the
inclusion of Pier Park and Oceanfront Park; and
WHEREAS, on September 18, 2001, the City's Asset Manager received a request
from Penrod Brothers to enter into a concession agreement for the beachfront area
seaward of Pier Park; and
WHEREAS, the Administration deems that entering into a Concession Agreement
with Penrod Brothers would provide for a continued service to beach patrons and thus be
in the best interest of the City; and
WHEREAS, said Concession Agreement would provide for the same terms and
conditions as those required for concessions seaward of privately owned uplands.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission waive by 517ths vote, the competitive bidding requirement, finding such waiver
to be in the best interest of the City, and approve a Concession Agreement by and
between the City of Miami Beach and Penrod Brothers, Inc., for the management and
operation of beachfront concessions on the beaches seaward of Pier Park, Miami Beach,
Florida, the term of which shall be on a month-to-month basis, and terminable without
cause and for convenience, with thirty (30) days written notice, at the City's discretion; and
further authorize the Administration and the City Attorney's Office to negotiate said
Concession Agreement with Penrod Brothers and authorize the Mayor and City Clerk to
execute same; said Concession Agreement, in addition to being terminable for
convenience, at the city's discretion, to include the following terms and conditions:
Concessionaire shall acknowledge and agree to be bound by the City's Rules And
Regulations For Beachfront Concession Operations, as amended; Concessionaire shall
obtain any and all necessary licenses and permits required for its concession operations;
Concessionaire to pay City annually the greater of $10,000, or 20% of the gross revenues
it derives for the privilege of operating the concession; and Concessionaire to comply with
the City's insurance and indemnification requirements.
PASSED AND ADOPTED THIS 28th day of
November
,2001.
cu~
CITY CLERK
APPROVED AS 10
& lANGUAGE
& FOR EXeCUTION
MAYOR
Attest:
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DSfti
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami~beach.fl.us
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez ~
City Manager ~
DATE: November 28,2001
TO:
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, WAIVING BY 517ths VOTE, THE
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE
IN THE BEST INTEREST OF THE CITY, AND APPROVING A
CONCESSION AGREEMENT BY AND BETWEEN THE CITY OF MIAMI
BEACH AND PENROD BROTHERS, INC., FOR THE MANAGEMENT AND
OPERATION OF BEACHFRONT CONCESSIONS ON THE BEACHES
SEAWARD OF PIER PARK, MIAMI BEACH, FLORIDA, THE TERM OF
WHICH SHALL BE ON A MONTH-TO-MONTH BASIS, AND TERMINABLE
WITHOUT CAUSE AND FOR CONVENIENCE, WITH THIRTY (30) DAYS
WRITTEN NOTICE, AT THE CITY'S DISCRETION; FURTHER
AUTHORIZING THE ADMINISTRATION AND THE CITY ATTORNEY'S
OFFICE TO NEGOTIATE SAID CONCESSION AGREEMENT WITH
PENROD BROTHERS AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE SAME; SAID CONCESSION AGREEMENT, IN
ADDITION TO BEING TERMINABLE FOR CONVENIENCE, AT THE CITY'S
DISCRETION, TO INCLUDE THE FOLLOWING TERMS AND CONDITIONS:
CONCESSIONAIRE SHALL ACKNOWLEDGE AND AGREE TO BE BOUND
BY THE CITY'S RULES AND REGULATIONS FOR BEACH FRONT
CONCESSION OPERATIONS, AS AMENDED; CONCESSIONAIRE SHALL
OBTAIN ANY AND ALL NECESSARY LICENSES AND PERMITS
REQUIRED FOR ITS CONCESSION OPERATIONS; CONCESSIONAIRE
TO PAY CITY ANNUALLY THE GREATER OF $10,000, OR 20% OF THE
GROSS REVENUES IT DERIVES FOR THE PRIVILEGE OF OPERATING
THE CONCESSION; AND CONCESSIONAIRE TO COMPLY WITH THE
CITY'S INSURANCE AND INDEMNIFICATION REQUIREMENTS
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
AGENDA ITEM fi.7 fJ
.
DATE Ll-a~-Ol
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),
expired on November 4, 2000.
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 without the inclusion of the beaches east of Pier Park and
Oceanfront Park.
On September 18, 2001, the City's Asset Manager received a request from Penrod
Brothers to enter into a concession agreement for its continued operation of a beachfront
concession seaward of Pier Park. Pier Park is City-owned, and as the upland owner the
City would have to provide authorization in order for Penrod Brothers to continue operating
the beachfront concessions.
Due to Penrod's long-term lease for the upland portion of Pier Park, which expires May 6,
2026, Penrod's is the logical operator of the beachfront concession operation eastward of
their existing facility. This will provide a seamless and smooth operation between the
upland and beachfront properties consistent with other upland/beachfront operations and
therefore the 517ths waiver is deemed to be in the best interest of the City.
The Concession Agreement will provide for an annual concession fee to the City of the
greater of:
1) $10,000, which is the maximum that is being charged to concessions east of
privately owned uplands, or
2) 20% of the gross revenues Penrod derives from its beachfront concession
operations. (Note: food and beverage revenue will continue to be reported and
remitted by Penrod through its currently existing Lease Agreement for the
Penrod Complex located at 1 Ocean Drive).
Additionally, the terms and conditions of the Concession Agreement will be similar to all
other concession agreements associated with beaches seaward of privately owned upland
locations, and as such will require that Penrod Brothers comply with all aspects of the
City's Rules and Regulations for Beachfront Concession Operations.
The Administration recommends that that the Mayor and City Commission waive by 517ths
vote, the competitive bidding requirement, finding such waiver to be in the best interest of
the City, and approve a Concession Agreement by and between the City of Miami Beach
and Penrod Brothers, Inc., for the management and operation of beachfront concessions
on the beaches seaward of Pier Park, Miami Beach, Florida, the term of which shall be on
a month-to-month basis, and terminable without cause and for convenience, with thirty (30)
days written notice, at the City's discretion; and further authorize the Administration and
the City Attorney's Office to negotiate said Concession Agreement with Penrod Brothers.
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City of Miami Beach - City Clerk's Office Version No.
182
November 28, 2001/ REGULAR AGENDA / R7 - Resolutions
10:14:23 a.m.
R7B A Resolution Waiving By 5/7ths Vote, The Competitive Bidding Requirement, Finding
Such Waiver To Be In The Best Interest Of The City, And Approving A Concession Agreement
By And Between The City Of Miami Beach And Penrod Brothers, Inc., For The Management
And Operation Of Beachfront Concessions On The Beaches Seaward Of Pier Park, Miami
Beach, Florida, The Term Of Which Shall Be On A Month-To-Month Basis, And Terminable
Without Cause And For Convenience, With Thirty (30) Days Written Notice, At The City's
Discretion; Further Authorizing The Administration And The City Attorney's Office To Negotiate
Said Concession Agreement With Penrod Brothers And Authorizing The Mayor And City Clerk
To Execute Same; Said Concession Agreement, In Addition To Being Terminable For
Convenience, At The City's Discretion, To Include The Following Terms And Conditions:
Concessionaire Shall Acknowledge And Agree To Be Bound By The City's Rules And
Regulations For Beachfront Concession Operations, As Amended; Concessionaire Shall Obtain
Any And All Necessary Licenses And Permits Required For Its Concession Operations;
Concessionaire To Pay City Annually The Greater Of $10,000, Or 20% Of The Gross Revenues
It Derives For The Privilege Of Operating The Concession; And Concessionaire To Comply
With The City's Insurance And Indemnification Requirements.
(Economic Development)
ACTION: Resolution No. 2001-24678 adopted. Motion made by Commissioner Bower;
seconded by Commissioner Gross; Voice vote: 6-0; Absent: Commissioner Cruz. Christina
Cuervo and Joe Damien to handle.
City Clerk's Note: The City Clerk's Office was informed that the documents approved via this
resolution will not be executed. See Resolution 2004-25506.
Printed by City Clerk's Office
Date Printed: 4/8/2004 Time Printed: 9:50:17 AM
Source Database: C:\Data\foli04.2\Clerk182.nfo