Resolution 2019-30860 RESOLUTION NO., 2019-30860
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER PURSUANT TO INVITATION TO NEGOTIATE (ITN) NO. 2019-138-KB,
FOR HYDROPONIC FARMING PARTNERSHIP (THE "PROJECT"), AND
AUTHORIZING THE ADMINISTRATION TO ENTER INTO SIMULTANEOUS
NEGOTIATIONS WITH FREIGHT FARMS, INC., THE TOP RANKED PROPOSER,
AND ENERGY COST SOLUTIONS GROUP, LLC, THE SECOND HIGHEST RANKED
PROPOSER, WITH SUCH NEGOTIATIONS TO INCLUDE FINAL SITE SELECTION,
SITE DEVELOPMENT, SELECTION OF PLANT MATERIALS, COMMUNITY
INVOLVEMENT, AND FINANCIAL CONSIDERATIONS FOR THE PROJECT;
FURTHER, PROVIDING THAT THE FINAL SELECTION OF THE RECOMMENDED
PROPOSER, AND FINAL SCOPE FOR THE PROJECT, SHALL BE SUBJECT TO
THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION.
WHEREAS, the Economic Development Department — Office of Real Estate is seeking
opportunities to produce more food with fewer resources than conventional farming, without
dependence and arable land availability and external climate conditions; and
WHEREAS, on May 2018, the City discussed a temporary pilot program for a hydroponic farm
in North Beach (or other areas of the City) (the "Project"); and
WHEREAS, on June 27, 2018, Dover Kohl presented an initial conceptual design entitled The
Plan for the West Lots (the "West Lots Plan") that specifically proposes a hydroponic farm as an eco-
friendly design principle; and
WHEREAS, on September 26, 2018, the Sustainability and Resiliency Committee (SRC)
recommended the next best steps was to issue a solicitation and allow the experts to provide their
ideas; and
WHEREAS, on February 13, 2019, the City Commission approved the issuance of ITN No.
2019-138-KB, Hydroponic Farming Containers; and
WHEREAS, on February 13, 2019, the City Commission approved the City Manager appointed
Evaluation Committee (the "Committee"), comprised of Heather Shaw, Assistant Director, Tourism &
Culture Department, Flavia Tonioli, Sustainability Manager, Environment & Sustainability Department,
Daniel Veitia, Resident and Planning Board Member, Justin Karr, Real Estate Asset Specialist, Office of
Real Estate, and Rodney Knowles, Division Director, Greenspace; and
WHEREAS, on April 1, 2019, the City received a total of three (3) proposals from the following
firms: CEA Advisors LLC, Energy Cost Solutions Group, LLC, and Freight Farms, Inc.; and
WHEREAS, the Committee convened on May 13, 2019, to consider the proposals received; and
WHEREAS, the Committee was provided an overview of the project, information relative to the
City's Cone of Silence Ordinance and the Government Sunshine Law, as well as general information on
the scope of services and a copy of each proposal, and was instructed to score and rank each proposal
pursuant to the evaluation criteria established in the ITN for qualitative factors; and
WHEREAS, the Committee's evaluation process resulted in the following order of ranking:
1st ranked proposer: Freight Farms, Inc.;
2nd ranked proposer: Energy Cost Solutions Group, LLC;
3rd ranked proposer: CEA Advisors LLC; and
WHEREAS, after reviewing the results of the Evaluation Committee process, including proposer
qualifications, the City Manager further exercised his due diligence and evaluated the cost submitted by
each proposer; and
WHEREAS, upon considering both qualitative and quantitative factors, the City Manager
recommends that the Mayor and City Commission authorize the Administration to enter into
simultaneous negotiations with Freight Farms, Inc., the top ranked proposer, and Energy Cost
Solutions Group, LLC, the second highest ranked proposer;
WHEREAS, although the proposed Project has the potential to be beneficial to the entire
community, the development of the Project is in its very early stages and there are many considerations
for the Administration to further evaluate and discuss with the proposers, including: the specific site for
the hydroponic farm; the types, sizes and layout of the containers; the plant materials to be grown; the
financial considerations for the Project, including the potential for revenue to be yielded by the City;
community involvement; and regulatory approvals, among other terms; and
WHEREAS, because the foregoing open items will likely require direction from the Mayor and
City Commission as to the scope of the Project, the Administration proposes that following negotiations,
the selection of the final recommended proposer, and the details concerning the final scope for the
Project, shall be subject to prior approval by the Mayor and City Commission.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the
recommendation of the City Manager, pursuant to Invitation to Negotiate (ITN) No. 2019-138-KB for
Hydroponic Farming Containers; authorizing the administration to enter into simultaneous negotiations
with Freight Farms, Inc., the top ranked proposer, and Energy Cost Solutions Group, LLC, the second
highest ranked proposer, with such negotiations to include final site selection, site development,
selection of plant materials, community involvement, and financial considerations for the Project;
further, providing that the final selection of the recommended proposer, and the final scope for the
Project, shall be subject to the prior approval of the Mayor and City Commission.
PASSED AND ADOPTED this S day of 3144e- 2019.
Dan Gelber, Mayor
ATTEST: ;
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Rafael, . Gra�do, City Clerk APPROVED rib ;u
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&FOR EXECUTION
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Date
Agenda Item R7 D
Date 6-'5-
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMIS •N MEMORANDUM
TO: Mayor Dan Gelber and Members . the City • mmission
FROM: Jimmy L. Morales, City Manager '
DATE: June 5, 2019
•
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PURSUANT TO INVITATION TO NEGOTIATE (ITN) NO. 2019-
138-KB, FOR HYDROPONIC FARMING PARTNERSHIP (THE "PROJECT"),
AND AUTHORIZING THE ADMINISTRATION TO ENTER INTO
SIMULTANEOUS NEGOTIATIONS WITH FREIGHT FARMS, INC., THE TOP
RANKED PROPOSER, AND ENERGY COST SOLUTIONS GROUP, LLC, THE
SECOND HIGHEST RANKED PROPOSER, WITH SUCH NEGOTIATIONS TO
INCLUDE FINAL SITE SELECTION, SITE DEVELOPMENT, SELECTION OF
• PLANT MATERIALS, COMMUNITY INVOLVEMENT, AND FINANCIAL
CONSIDERATIONS FOR THE PROJECT; FURTHER, PROVIDING THAT THE •
FINAL SELECTION OF THE RECOMMENDED PROPOSER, AND FINAL
SCOPE FOR THE PROJECT, SHALL BE , SUBJECT TO THE PRIOR
APPROVAL OF THE MAYOR AND CITY COMMISSION.
RECOMMENDATION
Approve the resolution accepting the recommendation of the City Manager, pursuant to
Invitation to Negotiate (ITN) No. 2019-138-KB for Hydroponic Farming Containers;
authorizing the administration to enter into simultaneous negotiations with Freight Farms,
Inc., the top ranked proposer, and Energy Cost Solutions Group, LLC, the second highest_
ranked proposer, with such negotiations to include final site selection, site development,
selection of plant materials, community involvement, and financial considerations for the
project; further, providing that the final selection of the recommended proposer, and the
final,scope for the project, shall be subject to the prior approval of the Mayor and City
Commission.
BACKGROUND
The North Beach Master Plan, adopted by the City Commission in 2016, included
guidance on planning for the West.Lots—the eight, vacant lots owned by the City and
spanning from 79th to 87th Streets across Collins Avenue from the North Shore Oceanside
Park. In 2018, the City hired consultants Dover, Kohl & Partners, the authors of the,North
Beach Master Plan, to further examine future,use(s) for the eight West Lots.
At community charrettes and meetings regarding both North Beach and the West Lots,
residents expressed a need for better access to fresh, healthy food and an interest in a
community garden. On/May 16, 2018, the City Commission referred to the Sustainability
& Resiliency Committee (SRC) a discussion regarding a temporary incubation pilot for a
hydroponic farm in North Beach or other areas of the City. Staff examined different areas
in the community that could house a hydroponic farm but did not identify any vacant City
buildings that would suitably accommodate a container farm.
Commission Memorandum
INVITATION TO NEGOTIATE(ITN)NO. 2019-138-KB, HYDROPONIC FARMING PARTNERSHIP
June 5, 2019
Page 12
At the June 27, 2018 City Commission meeting, Dover Kohl presented its conceptual
design known as the West Lots Plan. Dover Kohl's study was directly informed by
community input and recommended incorporating civic and social uses which complement
the passive park. Further, the West Lots Plan indicated a preference for lower height and
less impactful uses in the inner core of the West Lots. Dover Kohl specifically suggested
a hydroponic farm as an ecofriendly design principle that would support the Plan's key
recommendations.
In light of the presentation, the City Commission included funding for West Lots
redevelopment as a G.O. Bond item in the November 6, 2018 election. Dover Kohl
suggested several possible locations for the container farm, including the North Beach
Yard site on West Lot 3 (between 81st and 82nd Streets), or in conjunction with other
potential developments proposed in the West Lots Plan, including the proposed eco-park
on Lot 2(between 80th and 81st Streets) or the proposed tropical garden on Lot 6(between
84th and 85th Streets).
At.its September 26, 2018 meeting, the SRC recommended issuance of a solicitation and
allowing the experienced responders to provide their ideas. SRC also agreed with
Procurement's recommendation to utilize the Invitation to Negotiate (ITN) process. On
October 17, 2018, the City Commission accepted SRC's recommendation to develop a
solicitation seeking proposals from firms interested in partnering with the City to create
container farming opportunities in the West Lots.
ITN PROCESS
On February 13, 2019, the City Commission approved the issuance of Invitation to
Negotiate (ITN) No. 2019-138-KB, For Hydroponic Farming Partnership. On February 14,
2019, the ITN was issued. A voluntary pre-proposal conference to provide information to
proposers submitting a response was held on February 26, 2019. Three addenda were
issued. The Procurement Department issued bid notices to 66 companies utilizing
wwwcpublicpurchase.com website. 31 prospective bidders accessed the advertised
solicitation. ITN responses were due and received on March 26, 2019.
The City received proposals in response to the ITN from the following three (3) firms:
CEA Advisors LLC, Energy Cost Solutions Group, LLC ("ECSG"), and Freight Farms, Inc.
("Freight Farms")
February 13, 2019, the City Commission approved the City Manager appointed Evaluation
Committee. The Evaluation Committee convened on May 13, 2019, to consider proposals
received. The Committee was comprised of Heather Shaw, Assistant Director, Tourism &
Culture Department, Flavia Tonioli, Sustainability Manager, Environment & Sustainability
Department, Daniel Veitia, Resident and Planning Board Member, Justin Karr, Real Estate
Asset Specialist, Office of_ Real Estate, and Rodney Knowles, Division Director,
Greenspace. The Committee was provided an overview of the project, information relative
to the City's Cone of Silence Ordinance and the Government Sunshine Law. The
Committee was also provided with general information on the scope of services and a
,copy of each proposal. The Committee was instructed to score and rank each proposal
pursuant to the evaluation criteria established in the ITN.
Commission Memorandum
INVITATION TO NEGOTIATE(ITN)NO. 2019-138-KB,HYDROPONIC FARMING PARTNERSHIP
June 5,2019
Page 13 •
The evaluation process resulted in the ranking of proposers as indicated in Attachment A,
in the following order:
1st- Freight Farms, Inc.
2nd- Energy Cost Solutions Group, LLC
3rd- CEA Advisors LLC
r '
Freight Farms, Inc.
Freight Farms was established in 2010 and are the lead developers in the containerized
farm industry. Since then Freight Farms has gone on to develop several iterations of the ,
farms, starting with the Leafy Green Machine TM and recently unveiling the new Greenery
this year. Freight Farms are currently in 39 different states and 15 countries around the
world with close to 240 farms sold to date. In addition, Freight Farms was the first to
emerge as an Agriculture Technology "Ag Tech" leader and to build a farm inside of a
shipping container.
Energy Cost Solutions Group, LLC ,
ECSG was founded in 2009 by Jason Biondi. According to their proposal,\ECSG has been
the LEED consultant on LEED for Existing Buildings, LEED New Construction, LEED
Commercial Interiors, LEED Schools and LEED Core and Shell project certifications.
ECSG also states they are well experienced, communicative, especially responsive and
particularly equipped to work seamlessly with all stakeholders, in order to gain greater
understanding of the social, economic and environmental impacts of the project. ECSG
works alongside the projects design and construction teams, from design development
through certificate of occupancy, to ensure that the high quality of work required for LEED
certification is achieved. ECSG also has intent to meeting the City's, hydroponic produce
production goals, while including elements of resilient design, sustainability in operations
and community outreach.
CITY MANAGER'S RECOMMENDATION
I have reviewed the proposals submitted and the results of the Evaluation Committee
process. I concur with the Evaluation Committee that Freight Farms and ECSG submitted
the top proposals; however, neither bidder appears to have submitted a fully developed
concept that is ready for award. While the hydroponic container farm project as part of the
West Lots development has the potential to be beneficial to the entire community, the
proposals received are very general and there are many considerations for the
Administration to further evaluate,,including: the specific site for the hydroponic farm; the
types, sizes and layout of the containers; the plant materials to be grown; the financial
considerations, including any revenue or costs to the City; community input; and regulatory
approvals, among other terms. Accordingly, I am proposing that the Administration
simultaneously negotiate with the two top-ranked proposers, Freight Farms and ECSG,
regarding the terms and final scope of the hydroponic farming project. Because the
foregoing open items and final scope of the project will likely require direction from the
Mayor and City Commission, the Administration will present the results of the negotiation
process and any recommendations for next steps to the City Commission at its September
11, 201901meeting.
(
JLM/ST/BM/ D/KB
Attachments:
Attachment A— valuation Committee Rankings
Resolution
Resolutions - R7 D
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: June 5, 2019
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER, PURSUANT TO INVITATION TO NEGOTIATE (ITN)
NO. 2019-138-KB, FOR HYDROPONIC FARMING PARTNERSHIP.
(ITEM TO BE SUBMITTED IN SUPPLEMENTAL)
ANALYSIS
Legislative Tracking
Economic Development/Procurement
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