OIG No. 21-05: Contract Oversight Lincoln Road Antiques and Collectibles MarketJoseph M. Centorino, Inspector General
TO:
FROM:
DATE:
RE:
File
Joseph M. Centorino, Inspector General
October 20, 2020
Contract Oversight-Lincoln Road Antiques and Collectibles Market
OIG No. 21-05
Al legations:
On July 30, 2020, the Office of Inspector General (OIG) received a complaint from Mr. James
LaMorte. Mr. LaMorte owns Metro Flea Miami, LLC (hereinafter Metro Flea) and is a vendor with
the City. Metro Flea, until recently, had managed and operated the open-air street market in
Lummus Park.
Mr. LaMorte's complaint stated that he submitted a proposal pursuant to a Request for Letters of
Interest (RFLI 2019-318-WG) to manage and operate the Lincoln Road Antiques and Collectibles
Market. However, prior to the deadline for submissions, the existing vendor began accepting
money and reservations for future dates. Mr. LaMorte alleged that the current vendor had
communications with the Procurement Department well before the deadline for submissions, and
during the Cone of Silence, and was informed that its contract would be extended. He cites
advertising by the vendor on social media as the basis for his belief. Mr. LaMorte believes the
procurement process was a "farce" and complained that he never heard back from the City
regarding his proposal.
Background:
The City and Production Sud, Inc. entered into a contract, pursuant to RFP 2013-317-ME, for the
management and operation of the Lincoln Road Antique and Collectibles Market. The contract
had been in effect for five years and was scheduled to expire on September 30, 2019.
In anticipation of the expiration, on August 26, 2019 the City issued a Request for Letters of
Interest (RFLI 2019-318-WG) for the Management and Operation of Street Markets in two
locations: Lincoln Road Green Market and Lincoln Road Antiques and Collectibles Market. The
deadline for submissions was September 11, 2019.
After the RFU was issued, but prior to September 11, 2019, the Administration asked the City
Manager to approve a month-to-month renewal for a term not to exceed one year on Production
Sud's contract. The Manager signed the approval on September 6, 2019.
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As of September 11, 2019, the City had received 3 proposals for the Antiques and Collectibles
Market, including Mr. Lamorte's. On September 12, 2019, Procurement Director, Alex Denis, sent
Production Sud, Inc. a letter via email requesting its agreement to a month-to-month extension of
the existing contract for a term not to exceed one year. Production Sud, Inc. signed and returned
the agreement on September 23, 2019. The Lincoln Road Antiques and Collectibles Market
continued to operate until early 2020 when it was forced to stop operating due to Covid-19.
On September 16, 2020, the City Manager recommended that the Mayor and City Commission
authorize the Administration to finalize negotiations with Production Sud, Inc. for the Lincoln Road
Antiques and Collectibles Market pursuant to RFU 2019-318-WG.
Inquiry:
Special Agent Jani Singer emailed and spoke with Mr. James LaMorte regarding his complaint.
Mr. LaMorte explained that he had seen social media postings by Production Sud, Inc. and/or
Louis Bondi (Production Sud's representative) advertising and soliciting for vendors for the
Antiques Market. Mr. LaMorte stated that the advertisements were for future dates and the only
way Mr. Bondi would have known to move forward with advertising would be if he had
communicated with someone from the Procurement Department and knew he would be awarded
the contract. Mr. LaMorte alleged that the procurement process was a "farce," that the City did
not acknowledge his proposal and that they had predetermined that they were extending
Production Sud's contract. Mr. LaMorte tried to find the social media postings but was not able
to do so. He did provide his email correspondence with the City wherein he inquired why
Production Sud, Inc. was able to sign up vendors and advertise a "new season" prior to and during
the bidding process. He also provided a screen shot of an email from the City of Miami Beach
which advertised events in October 2019. That email did not mention the Antiques Market. He
had no further information.
Special Agent Singer searched Facebook and found a posting by the Friends of Lincoln Road.
The post included a flyer by Production Sud, Inc. announcing Lincoln Road Antique Market show
dates in October and November 2019 and directing vendors to a website for directions and
contract information.
Special Agent Singer spoke with Mr. Bondi about the posting on Facebook. Mr. Bondi explained
that antique dealers participate in markets around the state of Florida and need show dates well
in advance so that they can plan their business activities. Mr. Bondi stated that he started taking
contracts for the October 2019 shows in September 2019. He also acknowledged advertising on
social media as well as in the Miami Herald. This was his standard procedure. As his contract
with the City did not expire until September 30, 2019, this was permissible activity. Mr. Bondi
stated that had his contract not been renewed, he would have told the contracted vendors to work
with the new manager of the Antiques Market and taken a loss on the advertisement dollars.
Mr. Bondi stated that he did not have any conversation with anyone in the City regarding his
proposal until he was advised that his contract would be extended month to month via email.
After the extension was agreed to, he had a conversation with Justin Karr in the Economic
Development Department to discuss the proposal. This sequence of events was confirmed by a
review of email exchanges between the parties. On September 12, 2019, the day after the RFU
expired, Monica Garcia, a Procurement Department staff member, emailed Mr. Bondi the
proposed contract extension agreement. It was signed and returned to the Procurement
Department on September 23, 2019. And, on October 8, 2019, Justin Karr emailed Mr. Bondi
asking to speak with him about the market and his proposal.
Page 2 of 4
Special Agent Singer discussed the sequence of events with Mr. Mark Millisits, the Division
Director for the Property Management Department. Mr. Millisits stated that the procurement team
did not have enough time to review, select and negotiate with a new vendor before the expiration
of Production Sud's contract on September 30, 2019. Consequently, they made the decision to
extend the contract for a month to have the opportunity to review the proposals from all vendors
and not leave the City without a functioning market.
Contrary to the allegation made by Mr. LaMorte that he never heard anything from the City
regarding his proposal, on October 11, 2019, via an email to james@metroflea.miami, Mr. Millisits
sent Mr. LaMorte a letter thanking him for his proposal and advising him that his company was
not selected. The same letter was sent on October 11, 2019 to all of the other proposers who did
not get selected. It should also be noted that the RFLI specifically says "The City is not required
to act upon any information obtained through this RFLI. The City may consider releasing a
competitive solicitation as a result of the information obtained via this RFLI, may pursue a
procurement based on the purchase authorities expressed in its administrative code, or may take
no action as a result of this RFLI."
Production Sud operated the Lincoln Road Antiques and Collectibles Market on a month to month
contract until COVID-19 forced it to close.
On September 16, 2020 in a letter to the City Commission, the City Manager recommended that
the Mayor and Commission authorize the Administration to finalize negotiations with Production
Sud for the Lincoln Road Antiques and Collectibles Market and execute a negotiated agreement.
The decision was based on the following:
1. Production Sud proposed an annual minimum guarantee of $34,034.18.
2. Production Sud's guarantee was a 20% increase in revenue share for the City of Miami
Beach.
3. Production Sud had been operating this market for the last 25 years.
4. Production Sud produces consistently reliable production with quality
vendors/products, reliable accounting records, and responsive management staff.
In choosing not to select Metro Flea, the decision was based on the following:
1. Metro Flea offered an annual minimum guarantee of $15,000.
2. Metro Flea had previously managed two markets in Lummus Park and demonstrated
a need for significant oversight by City staff.
The final proposer, Just Brands, provided no revenue proposal or financial component as required
by the RFLI, and wanted to modify the market's scope and direction contrary to the City's desires.
Conclusion:
In the Miami Beach City Code, Division 4, Section 2-486 (a)(1), the "Cone of Silence" is defined
as a prohibition on "any communication regarding a particular request for proposal, request for
qualifications or bid between a potential vendor, service provider, bidder, lobbyist, or consultant
and the city's administrative staff including, but not limited to, the city manager and his or her staff.
The cone of silence shall terminate according to Section 2-486 (b)(1) at the time the city manager
makes his or her written recommendation as to the selection of a particular RFP, RFQ or bid to
the city commission."
Page 3 of 4
There is no evidence to show that the City administrative staff had any communication regarding
Mr. Bondi's proposal between August 26, 2019 when the RFU was published and September 11,
2019 when it expired.
Mr. LaMorte's complaint is unfounded.
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Date
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washington Avenue, 6" Floor, Miami Beach, FL 33139
Tel: 305.673.7020 • Fax: 305.587.2401 • Hotline: 786.897.111I
Email: CityofMiamiBeachOIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
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