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HomeMy WebLinkAbout2002-24820 Reso RESOLUTION NO. 2002-24820 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A MANAGEMENT AGREEMENT, IN A FORM SUBSTANTIALLY ATTACHED, BY AND BeTWEEN THE CITY OF MIAMI BEACH AND GREEN SQUARE, INC. FOR THE COMPREHENSIVE PROFESSIONAL TENNIS MANAGEMENT AND OPERATIONS SERVICES AT THE CITY'S FLAMINGO PARK TENNIS CENTER, IN ACCORDANCE WITH REQUEST FOR PROPOSALS (RFP) NO. 8-00101; SAID AGREEMENT SHALL HAVE AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON APRIL 15, 2002, AND EXPIRING APRIL 14, 2005, WITH OPTIONS TO RENEW FOR TWO ADDITIONAL ONE YEAR TERMS, ON A YEAR-TO- YEAR BASIS, AS PROVIDED IN THE AGREEMENT; INCLUDING AN OPTION FOR THE CITY TO TERMINATE SAID AGREEMENT, AT THE CITY'S CONVENIENCE AND WITHOUT CAUSE AT THE CONCLUSION OF THE SECOND YEAR OF THE INITIAL TERM AND A 90-DAY NOTICE/SUSPENSION CLAUSE BASED ON THE CLOSURE OF THE FLAMINGO TENNIS CENTER FOR PLANNED CONSTRUCTIONI RENOVATIONS. WHEREAS, as a result of concerns expressed about the operation of the City's Tennis Centers, the Administration undertook the development of an RFP for management of the two Tennis Centers; and WHEREAS, following this process the RFP was issued, proposals were received, reviewed and a recommended firm for the management and operations of the Flamingo Tennis Center was made; and WHEREAS, on January 9,2002, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the most qualified firm of Green Square, Inc., pursuant to RFP No. 8- 00/01 (the RFP) to manage and operate the Flamingo Tennis Center; and WHEREAS, the Administration and the Principals of Green Square have been meeting to negotiate the terms of this Agreement; and WHEREAS, these meetings have successfully concluded with the terms and conditions stated herein as the basis of the Agreement for the comprehensive professional tennis management and operations services at the City's Flamingo Tennis Center. 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 a Management Agreement, in a form substantially attached, by and between the City of Miami Beach and Green Square, Inc. for the Comprehensive Professional Tennis Management and Operations Services at the City's Flamingo Park Tennis Center, in accordance with the Request For Proposals (RFP) No. 8-00/01; said Agreement shall have an initial term of three (3) years, commencing on April 15, 2002, and expiring on April 14, 2005, with two options to renew for additional one year terms, on a year-to-year basis, as provided in the Agreement; including an option for the City to terminate said Agreement, at the City's convenience and without cause at the conclusion of the second year of the initial term and a 90-Day notice/suspension clause based on the closure of the Flamingo Park Tennis Center for planned construction/ renovations. PASSED and ADOPTED this 10th day April 20 2. APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~~fH ~~O,.. DATE T:\AGENDA\2002\APRI002\REGULAR\4-10-02 Green Square Agmt.RES.doc CI1Y HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 .WWW.ci.miami-beach.fI.us CITY OF MIAMI BEACH To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Date: April 1 0, 2002 Members of the City Commission Jorge M. Gonzalez ~ ~/ City Manager . tf'P D A RESOLUTION 0 HE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A MANAGEMENT AGREEMENT, IN A FORM SUBSTANTIALLY ATTACHED, BY AND BETWEEN THE CITY OF MIAMI BEACH AND GREEN SQUARE, INC. FOR THE COMPREHENSIVE PROFESSIONAL TENNIS MANAGEMENT AND OPERATIONS SERVICES AT THE CITY'S FLAMINGO PARK TENNIS CENTER, IN ACCORDANCE WITH REQUEST FOR PROPOSALS (RFP) NO. 8-00101; SAID AGREEMENT SHALL HAVE AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON APRIL 15, 2002, AND EXPIRING APRIL 14, 2005, WITH OPTIONS TO RENEW FOR AN ADDITIONAL TWO (2) ONE YEAR TERMS, ON A YEAR-TO-YEAR BASIS, AS PROVIDED IN THE AGREEMENT; INCLUDING AN OPTION FOR THE CITY TO TERMINATE SAID AGREEMENT, AT THE CITY'S CONVENIENCE AND WITHOUT CAUSE AT THE CONCLUSION OF THE SECOND YEAR OF THE INITIAL TERM AND A 90-DA Y NOTICEI SUSPENSION CLAUSE BASED ON THE CLOSURE OF THE FLAMINGO TENNIS CENTER FOR PLANNED CONSTRUCTIONI RENOVATIONS. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. ANALYSIS As a result of concerns expressed about the operation of the City's Tennis Centers, the Administration undertook the development of an RFP for management of the two Tennis Centers. In developing and refining the RFP, several meetings were held with several interested parties to obtain input and gain comments. Following this process the RFP was issued, proposals were received, reviewed and a recommended firm for the management and operations of the Flamingo Tennis Center was made. City Commission Memorandum March 20, 2002 Green Square Tennis Management Agreement Page 2 On January 9, 2002, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the most qualified firm, Green Square, Inc., pursuant to RFP No. 8-00/01 (the RFP) to manage and operate the Flamingo Tennis Center. The Administration and the Principals of Green Square, Inc. have been meeting to negotiate the terms of this Agreement and have successfully concluded with the terms and conditions stated herein as the basis of the Agreement for the comprehensive professional tennis management and operations services at the City's Flamingo Tennis Center. Additionally, the terms ofthe Agreement have been reviewed and approved by the City's outside Tax Counsel to ensure it complies with the requirements of the tax exempt bond proceeds that will be expended to renovate the Flamingo Tennis Center. Proposed Management Agreement Below is a listing of the salient points of the proposed Management Agreement: 1. Execution Date: Date of adoption by the City Commission. 2. Commencement Date: April 15, 2002. , 3. Premises to be Managed: The certain City-owned recreational facilities commonly known as the Flamingo Tennis Center located at 11th Street and Jefferson Avenue, together with all buildings, improvements and fixtures located thereon. 4. Services to be provided: The Premises solely for the operation of a public tennis facility. This use shall include the operation of the tennis courts, pro shop, and food and beverage facilities as approved by the City and the Contractor's office. Services shall include those customarily associated with the operation of a public tennis center and permitted special events related to the tennis center activities. Services shall include but not be limited to: · Provide, promote and instruct lessons in the game of tennis by certified tennis professionals to individuals, groups and clinics. Said service shall offer the tennis patron a choice of instructor level and hourly fee commensurate with the instructor's level. Such instruction is defined at minimum as: . Individual lesson - shall be shared with up to 3 tennis patrons. . Group lesson - shall be shared with up to 5 tennis patrons. . Clinics - shall be groups of no less than 4 and no more than 8 tennis patrons per instructor. City Commission Memorandum March 20, 2002 Green Square Tennis Management Agreement Page 3 · Coach tennis teams sanctioned and approved by the City's Parks and Recreation Department, such services to be provided for a coaching fee or free, depending on mutual advance agreement of the City. · Offer demonstrations of aspects of the game of tennis in promotion of the Center. Such instruction will be defined as a demonstration. Such demonstrations may be either for a fee or free of charge, depending on mutual advance agreement of the City. · Establishment, operation and tabulation of tournaments as requested by the City or facility tennis patrons, including participation in establishing specific needs for individual tournaments. · Promote junior tennis by establishing a junior tennis team at each center. Teams will play in a league with other Miami Beach or Miami Dade County Tennis Facilities. · Provide advice to the City of changes, regarding the tennis industry in general, tennis rules and regulations, equipment and promotional methods associated with the operation of public tennis facilities. · Provide Seasonal (three classes, each fall, winter and spring) group clinics at low cost (a per lesson fee for six to eight lessons to be negotiated and approved in advance by the City) to the community. · Overall Tennis Centers Management in accordance with City policy, directives and established policies including but not limited to: a. Tennis court reservation services b. Facility/court monitoring c. Tennis lessons reservations d. Food and beverage service (if applicable) e. Pro shop operations f. Courts/grounds/buildings maintenance to City specifications g. Booking of local, regional and state tennis tournaments h. Marketing, promotion and advertising of the City's Tennis Centers to residents, day guests and Miami Beach hotels. i. Must provide summer and specialty camps based on full day Recreational Division Camp format. j. Must adhere to all City of Miami Beach established tennis center rules (to be jointly developed by the City and Contractor.) k. Tennis professionals must posses and maintain an occupational license. I. Collection and accounting of all revenues. m. Payment and accounting of all expenses in a timely manner. City Commission Memorandum March 20, 2002 Green Square Tennis Management Agreement Page 4 n. Formulation and implementation of operating programs, business plans, and budgets. o. Handling of personnel including employment, (including certified background investigations), training, and terminations. p. Preparation of monthly and annual financial operating statements in a format acceptable to the City. q. Operate the facility in accordance with a City of Miami Beach Tennis Centers Policy Manual to be jointly prepared by the selected proposer and the City. r. At minimum comply with the City's facility and courts maintenance standards. 5. Fees Structure: The Contractor will collect all revenues generated at the Flamingo Tennis Center on behalf of the City and deposit them into an account established by the City. The City will then pay the Contractor from said account for the services stipulated in the Agreement. Until October 2002, the City will retain 10% of all revenue with no requirement that a subsequent monthly minimum fee be paid. The minimum fee amount will be annualized in the first year of the agreement in order to give the contractor some cash flow relief at the onset of their business. After the first year, the City will retain the larger of a minimum monthly payment of $4,000 or a percentage of gross revenues. The City's percentage is never less than 10% and increases to 15% at a gross revenues threshold of over $500,000 and 18% if gross revenues exceed $1 million. Specific financial terms are specified on Exhibit A of the attached agreement. The Contractor shall have access to the balance of funds remaining in established account to pay their management and operational expenses. There shall be a reconciliation of all accounting within 15 working days following the completion of each Agreement year (April 15th -April 14th). If there is a balance of the minimum annual guarantee due to the City or an adjustment of payment due to the City based on the incremental percentage of revenue sharing as stipulated in the Agreement, the Contractor shall submit the full amount to the City within 10 days of the settlement date. 6. Term: Three (3) years, with two (2) one-year extensions on a year to year basis at the City's option. Additionally, the City shall have the option to terminate this Agreement at the conclusion of the second year at its convenience and without cause andl or with ninety (90) days written notice to the Contractor should it be deemed necessary due to the construction of the Flamingo Tennis Center. It shall also be the City's option to suspend the terms and conditions of this Agreement during the period the Flamingo Tennis Center is under construction and resume it when the Center reopens, with no impact to the City or Contractor. 7. Payment and Performance Bond: Upon Commencement Date and throughout the term of the Agreement, the Contractor will provide a $100,000 performance bond, Letter of Credit or some other form of payment and performance guarantee acceptable to the City. City Commission Memorandum March 20, 2002 Green Square Tennis Management Agreement Page 5 8. Maintenance: The Contractor shall be responsible for the daily and routine maintenance of the buildings, facilities and courts at its sole expense the entire period this Agreement is in effect. The City shall continue to maintain all major electrical, HVAC and plumbing systems at its expense and further acknowledges that Contractor shall not be required to improve, repair, restore, refurbish, or otherwise incur any expense in improving or changing the condition of the Premises if same requires Contractor to exceed the threshold amount of $1,000 per occurrence. The Contractor shall not be responsible for major repairs to sports lighting, roofs, exterior walls, air- conditioning, plumbing, electrical system(s) or foundations. The City will be responsible for these costs. 9. Hours of Operation: The Contractor shall open and operate the Flamingo Tennis Center for play from 8:00 AM. to 9:00 P.M. every day of the year, with the exception of closures due to weather conditions or events of force majeure permitting, and certain holidays agreed upon by the Contractor and the City. Additionally, the Contractor acknowledges and agrees to prioritize utilization of courts for public usage by restricting lesson courts to not exceed four (4) courts during peak hours of play (8:00 AM to 11 :00 AM and 4:00 PM to 7:00 PM). Additionally court usage for lessons, programs and clinics during non-peak hours shall be subject to the approval of the City. At no time shall more than 50% of all courts be utilized for private lessons or other specialized tennis programs until 10 minutes after any non-peak hour and there are no tennis patrons waiting for a court, without the prior written approval of the City. During the time of reconstruction of the Flamingo Tennis Center, the terms of this agreement will be suspended. The City and the contractor will renegotiate temporary terms and conditions utilizing those facilities that can be made available elsewhere to sustain tennis operations. That temporary agreement will be presented to the Commission for approval. It is anticipated that reconstruction will be undertaken in approximately 2004. The Administration recommends that the Mayor and City Commission approve the attached Management Agreement with Green Square, Inc. for the Comprehensive Professional Tennis Management and Operations Services at the City's Flamingo Park Tennis Center. JMG:RCM:KS:cdc L:\CMGR\AGENDA\2002\APR1 002\REGULAR\4-1 0-02-Com.memo_ Green Sq Agmt.doc CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A Resolution of the Mayor and City Commission of Miami Beach, Florida authorizing the Mayor and City Clerk to execute a management agreement With Green Square, Inc. for the Comprehensive Professional Tennis Management and Operations Services at the City's Flamingo Tennis Center. Issue: Shall the City enter into an Agreement with Green Square, Inc. for the Comprehensive Professional Tennis Management and Operations Services at Flamingo Tennis Center and Authorize the Mayor and City Clerk to execute said Agreement. Item Summary/Recommendation: As a result of concerns expressed about the operation of the City's Tennis Centers, the Administration undertook the development of an RFP for management of the two Tennis Centers. The Administration issued the RFP, and received 11 responsive proposals. Upon receipt of the proposals the evaluation process took place. On January 9, 2002, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the most qualified firm of Green Square, Inc., pursuant to RFP No. 8-00/01 (the RFP) to manage and operate the Flamingo Tennis Center. The Administration and the Principals of Green Square, Inc. have negotiated and reached consensus on the terms and conditions as stipulated in the attached Agreement. Salient point of this Agreement include but are not limited to an initial three (3) year term with two (2) one year renewals at the City's discretion; the Contractor is to collect all revenues and deposit them in a City bank account. From this the Contractor will pay all operational expenses (except water), labor and a management fee. Additionally, the Contractor shall pay the City a minimum of $48,000 per year or a percentage of gross revenues, which ever is greater; manage the Tennis Center and offer a wide variety of tennis programs, lessons, clinics and other services (including a pro shop) for the residents and guests playing tennis at the Flamingo Tennis Center. Examples include youth and after school programs, individual and group lessons and youth and adult clinics. Additionally, the Contractor shall be responsible for the daily maintenance of the tennis courts and all other areas of the tennis center. Advisory Board Recommendation: The contents of the RFP were discussed extensively at several community and Commission Committee meetings prior to issuance. At the January 9, 2002, Commission meeting the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the most qualified firm of Green Square, Inc. Financial Information: Amount to be expended: D Finance Dept. Source of Funds: AGENDA ITEM C'7 P DATE --.!J-l()-02.