2001-24678 ResoRFP) 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 APPROVEDAS10 lANGUAGE
FOR EXeCUTION MAYOR
Attest:
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.
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
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.JMG:C~
J~T:\AGENDA\2001IN0V2B01 IREGULARIPENROD FNL.MEM.DOC
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