Resolution 2020-31457 RESOLUTION NO. 2020-31457
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
NEIGHBORHOOD AND QUALITY OF LIFE COMMITTEE AND OF THE CITY
MANAGER, AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING
REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF
THE CITY; AND APPROVING AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A CONCESSION AGREEMENT BETWEEN THE CITY
AND SOUTH POINTE CAFÉ LLC ("CONCESSIONAIRE"), FOR THE
MANAGEMENT AND OPERATION OF A FOOD AND BEVERAGE
CONCESSION, LOCATED IN A PORTION OF THE SOUTH POINTE PARK
PAVILION BUILDING, CONSISTING OF APPROXIMATELY 240 SQUARE
FEET; SAID CONCESSION AGREEMENT HAVING A TERM OF ONE (1)YEAR,
WITHOUT ANY RENEWAL OPTIONS, COMMENCING ON DECEMBER 1, 2020
AND ENDING ON NOVEMBER 30, 2021.
WHEREAS, on September 15, 2010, the Mayor and City Commission adopted Resolution
No. 2010-27485, authorizing the Administration to enter into negotiations with Blissberry, LLC
("Blissberry"), as the top-ranked proposer pursuant to Request for Proposals (RFP) No. 34-09/10,
for the management and operation of a food and beverage concession located in a portion of the
South Pointe Park Pavilion Building; and further authorizing the Mayor and City Clerk to execute
an agreement, upon conclusion of successful negotiations; and
WHEREAS, the resulting Concession Agreement, dated November 24, 2010, contained
an initial term of two (2)years, commencing on December 1, 2010 and ending on November 30,
2012, with three (3) renewal options for one (1) year each, at the City Manager's sole discretion;
and
WHEREAS, prior to the expiration of the Concession Agreement, Blissberry submitted a
letter to the City requesting to extend the Concession Agreement for a period of five (5) years;
and
WHEREAS, on May 6, 2015, the Mayor and City Commission adopted Resolution No.
2015-29008, accepting the recommendation of the Finance and Citywide Projects Committee,
and waiving, by 5/7ths vote, the competitive bidding requirement, finding such waiver to be in the
best interest of the City; and approving the Mayor and City Clerk to execute a new Concession
Agreement with Blissberry; and
WHEREAS, subsequently the Concession Agreement between the City and Blissberry,
LLC, dated July 1, 2015, was assigned to South Pointe Café LLC ("Concessionaire") on
September 1, 2016; and
WHEREAS, in a letter dated September 14, 2020, Concessionaire requested a new
Concession Agreement for a period of five (5) years, commencing on December 1, 2020 and
ending on November 30, 2025; and
WHEREAS, this matter was discussed at the September 23, 2020 meeting of the
Neighborhood and Quality of Life Committee ("NQLC") and the NQLC recommended in favor of
waiving competitive bidding and executing a new lease with Concessionaire for a period of one
(1) year, during which time the Administration should issue a request for proposals (RFP) for a
long term agreement; and
WHEREAS, the Administration recommends in favor of accepting the recommendation of
the Neighborhood and Quality of Life Committee to waive competitive bidding and execute a new
lease with Concessionaire for a period of one (1)year.
NOW THEREFORE, BE IT 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, and accept the recommendation of the Neighborhood
and Quality of Life Committee and of the City Manager, and waive, by 5/7th vote, the competitive
bidding requirement, finding such waiver to be in the best interest of the City; and approve
and authorize the Mayor and City Clerk to execute a concession agreement between the City and
South Pointe Café LLC ("Concessionaire"), for the management and operation of a food and
beverage concession, located in a portion of the South Pointe Park Pavilion Building, consisting
of approximately 240 square feet; said concession agreement having a term of one (1) year,
without any renewal options, commencing on December 1, 2020 and ending on November 30,
2021.
PASSED AND ADOPTED this I` day of 0C"7 2020.
,0004:270,
Dan Gelber, Mayor
ATTEST:
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Resolutions -R7 C
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 14, 2020
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
NEIGHBORHOOD AND QUALITY OF LIFE COMMITTEE AND OF THE CITY
MANAGER, AND WAIVING, BY 517TH VOTE, THE COMPETITIVE BIDDING
REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST
OF THE CITY;AND APPROVING AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A CONCESSION AGREEMENT BETWEEN THE CITY
AND SOUTH POINTE CAFE LLC ("CONCESSIONAIRE"), FOR THE
MANAGEMENT AND OPERATION OF A FOOD AND BEVERAGE
CONCESSION, LOCATED IN A PORTION OF THE SOUTH POINTE PARK
PAVILION BUILDING, CONSISTING OF APPROXIMATELY 240 SQUARE
FEET; SAID CONCESSION AGREEMENT HAVING A TERM OF ONE (1)
YEAR, WITHOUT ANY RENEWAL OPTIONS, COMMENCING ON DECEMBER
1, 2020 AND ENDING ON NOVEMBER 30, 2021.
BACKGROUND/HISTORY
On September 15, 2010, the Mayor and City Commission adopted Resolution No. 2010-27485,
authorizing the Administration to enter into negotiations with Blissberry, LLC ("Blissberry"), as the
top-ranked proposer pursuant to Request for Proposals (RFP) No. 34-09/10,for the management
and operation of a food and beverage concession located in a portion of the South Pointe Park
Pavilion Building; and further authorizing the Mayor and City Clerk to execute an agreement, upon
conclusion of successful negotiations.
The resulting Concession Agreement, dated November 24, 2010, contained the following basic
terms and conditions:
Concession Area: A portion of. the South Pointe Park Pavilion Building, consisting of
approximately 240 square feet
Initial Term: Two (2) years commencing on December 1, 2010 and ending on November 30,
2012
Renewal Options: Three (3) renewal options for one (1) year each, at the City Manager's sole
discretion.
Concession Fee: Fifteen percent(15%)of gross sales
Page 819 of 1576
Minimum Guarantee: Nine thousand dollars ($9,000)annually, paid at the beginning of each
contract year,with annual Consumer Price Index(CPI)increases, starting in the third year.
Blissberry's gross sales, and the corresponding fees paid to the City, are illustrated in the chart
below.
Contract Gross Minimum True-Up Total
Year Period Sales %Inaease Guarantee (15%of Gross) Rent
P 12/10-11/11 $ 74,652 - $ 9,000 $ 2,198 $ 11,198
2 12/11-11/12 $ 124,846 67% $ 9,000 $ 9,727 $ 18,727
3 12/12-11/13 $ 174,240 40% $ 9,576 $ 16,560 $ 26,136
4 12/13-11/14 $ 224,666 29% $ 9,711 $ 23,989 $ 33,700
5 12/1411/15 $ 243,226 8% $ 9,945 $ 26,539 $ 36,484
$ 841,630 $ 126,245
56 Month Average $ 2,254
*Reflects Eight(8)Months of Sales Due to Delayed Opening
Prior to the expiration of the Concession Agreement, Blissberry submitted a letter to the City
requesting to extend the Concession Agreement for a period of five (5) years. Subsequently,
Blissberry requested that the concession fee be reduced from fifteen percent (15%) of gross
sales to ten percent(10%)of gross sales.
On May 6, 2015,the Mayor and City Commission adopted Resolution No. 2015-29008, accepting
the recommendation of the Finance and Citywide Projects Committee, and waiving, by 5/7ths
vote,the competitive bidding requirement, finding such waiver to be in the best interest of the City;
and approving the Mayor and City Clerk to execute a new Concession Agreement with Blissberry,
containing the following basic terms and conditions:
Concession Area: A portion of the South Pointe Park Pavilion Building, consisting of
approximately 240 square feet
Initial Term: Five (5) years commencing on December 1, 2015 and ending on November 30,
2020
Renewal Options: None
Concession Fee: Ten percent(10%)of gross sales
Minimum Guarantee: Twenty-five thousand dollars ($25,000)annually, payable in equal quarterly
installments of six thousand two hundred and fifty dollars ($6,250),on the first day of each quarter,
with annual Consumer Price Index(CPI)increases.
ANALYSIS
Assignment from Blissberry. LLC to South Pointe Cafe LLC
The Concession Agreement between the City and Blissberry, LLC, dated July 1, 2015, was
assigned to South Pointe Café LLC ("Concessionaire")on September 1, 2016. The assignment
required the reasonable consent of the City Manager, which was also provided on September 1,
Page 820 of 1576
2016.
Concessionaire's gross,sales, and the corresponding fees paid to the City, are illustrated in the
chart below.
Contract Gross Minimum True-Up Total
Year Period Sales %Increase Guarantee (10%of Gross) Rent
6 12/15-11/16 $ 194,545 -20% $ 25,000 - $ 25,000
7 12/16-11/17 $ 275,898 42% $ 25,023 $ 2,567 $ 27,590
8 12/17-11/18 $ 354,237 28% $ 25,305 $ 10,119 $ 35,424
9 12/18-11/19 $ 415,216 1796 $ 25,988 $ 15,534 $ 41,522
10* 12/19-11/20 - - $ 26,431 - -
$1,239,896 $ 129,535
48 Month Average $ 2,699
*Current contract year impacted by Covid-19 and concession closure.
As reflected above, since taking over the concession operation three (3) years ago,
Concessionaire has consistently increased gross sales over the previous six (6) years of gross
sales achieved by the previous operator. The highest annual gross sales achieved by the previous
operator was $243,226 while the highest annual gross sales achieved by the current operator was
$415,216. This represents a 71% increase. However, due to the decrease in the concession
fees paid to the City under the current contract (Percentage of Gross Sales decreased from 15%
to 10%), the concession fees received by the City in conjunction with said gross sales only
increased by 14% ($36,484 to $41,522). Similarly, over the term of the two contracts,the average
concession fees received by the City have only increased 20%($2,254 to$2,699 monthly).
Current comparable food and beverage concession agreements in the City include the Boucher
Brothers Beachfront Concession Agreement at 21st & 46th Streets which, over the last three
years, has resulted in a Percentage of Gross Sales paid to the City of approximately twenty-two
percent (22%) of food and beverage sales. This includes food and beverage sales both on the
beach and from the upland concession buildings. Additionally, the Boucher Brothers Beachfront
Concession Agreement at Lummus Park contains a Percentage of Gross Sales paid to the City of
fifteen percent(15%)for food and beverage sales.
As contained in the attached letter dated September 14, 2020 (attached hereto as Exhibit A),
Concessionaire has requested a new Concession Agreement for a period of five (5) years,
commencing on December 1, 2020 and ending on November 30, 2025. Per Concessionaire's
letter, since taking over the operation in 2016, Concessionaire has expanded the products offered
and has invested over $10,000 in equipment (i.e. refrigerators, espresso machine, convection
oven, blenders, juicers, etc.). Additionally, Concessionaire has hired approximately thirty current
and former Miami Beach High School students. Concessionaire also included a letter of support
from the President of the Friends of South Pointe Elementary Children& Education Foundation.
Neighborhood and Quality of Life Committee
This matter was discussed at the September 23, 2020 meeting of the Neighborhood and Quality
of Life Committee ("NQLC"). The NQLC recommended in favor of waiving competitive bidding
and executing a new lease with Concessionaire for a period of one (1) year, during which time the
Administration should issue a request for proposals (RFP)for a long term agreement.
Page 821 of 1576
CONCLUSION
The Administration recommends in favor of accepting the recommendation of the Neighborhood
and Quality of Life Committee to waive competitive bidding and execute a new lease with
Concessionaire for a period of one (1)year. Additionally,the Administration recommends, in order
to be more consistent with other concession agreements in the City, increasing the concession fee
to fifteen percent(15%)of gross sales. Additionally, based on the gross sales for contract years
2018 and 2019, the Administration recommends increasing the Minimum Guarantee to thirty-six
thousand dollars ($36,000) annually, payable in equal quarterly installments of nine thousand
dollars ($9,000)each.
Lastly, Concessionaire had operated a food and beverage concession within the Flamingo Park
pool area under a special events pop-up permit in 2019. Even though the concession did not
generate a significant amount of gross sales (approximately$4,000 monthly),the amenity was well
received by pool and park patrons. The Administration recommends authorizing the City Manager
to have the discretion to include, at a future date, the Flamingo Park concession in the ,new
agreement with South Pointe Café LLC.
Applicable Area
South Beach
Is this a"Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
No No
Strategic Connection
Neighborhoods-Evolve parks and green spaces to meet the changing needs of the community.
Legislativ@ Tracking
Property Management
Sponsor
Commissioner Michael Gongora
ATTACHMENTS:
Description
❑ Exhibit A- Letter from Concessionaire dated September 14, 2020
Page 822 of 1576
TO:
City of Miami Beach
September 14, 2020
Re: Request for renewal of Food & Beverage concession at South Pointe Park Pavillion Building
This is to respectfully request the renewal of the Food & Beverage concession at South Pointe
Park Pavillion Budding in Miami Beach,for the next term starting December 1 ,2020 through
November 30, 2025.
This company has been continuously operating said concession from September 2016.
Unfortunately we were forced to close in March 2020 due to the COVID19-related ordinances
and could only recently reopen, although at a much reduced volume due to restrictions and
lack of demand.
As a Miami Beach resident with two children enrolled at South Pointe Elementary and who are
frequent visitors of the Park, it has always been my goal to do our part in improving the quality
of the offer and the overall experience at the Park, as well as representing Miami Beach in the
best way possible to tourists.
With that in mind,we heavily expanded the assortment, adding exclusively local vendors,
among which:
- GelatoGo,gelato, based in Miami Beach;
- Daakzen,popsicles,based in Hialeah,FL;
- Popsy,popsicles, based in Doral, FL;
- Mayer Franco,homemade empanadas, Miami, FL
To support this expansion we invested in additional equipment for a total amount exceeding
$10,000, including:
o 3 display refrigerators,featuring locally made, healthy popsiscles
O 1 display refrigerators to add locally made,artisan gelato
O 1 high-quality, Italian commercial espresso/cappuccino machine;
O 1 convection oven to bake fresh croissant,empanadas, and pizza, all locally
made;
o POS system
Page 823 of 1576
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o Blenders
o Juicers
In the spirit of contributing to the Community and being the Ambassadors of Miami Beach to
visitors,we hired current and former Miami Beach High students(see attached document).
We also cooperated with the South Pointe Elementary and FOSPE (Friends of South Pointe
Elementary),as indicated in the attached letter.
As a result of these renewed efforts and the support from the Community and Park's visitors,
sales have more than doubled from 2016,also resulting in improved revenues for the City.
We remain at your disposal for any additional information you may require
Sincerely,
South Pointe Cafe LLC
Stefano Cavinato
. Managing Member
Page 824 of 1576
c Siilrt/r ('ri/O
SOUTH POINTE CAFE: MIAMI BEACH BEST FIRST JOB
Since 2016, South Pointe Café has been operating the City of Miami Beach concession at South
Pointe Park.
During the last four years, it has employed 30 young men and women, all students or graduates
of Miami Beach High School.
We believe working at South Pointe Café has provided a meaningful experience, often the very
first work experience, helping to develop several skills, including exposure to sales,food
preparation,customer service, inventory management.
Also, we believe that Miami Beach residents are best motivated to interact with the many
tourists as well as establish a positive relationship with fellow residents who frequent the Park.
Hourly wages have always exceeded $10 per hour.
It is our intention to continue the same policy and offer the same opportunity to many more
students or past students.
Page 825 of 1576
June 15, 2020
TO WHOM IT MAY CONCERN
Dear Sir/Madam:
As requested, I am writing this letter in support of South Pointe Café and its owner Stefano
Cavinato.
Stefano has been a dedicated father of two children attending Miami Beach South Pointe
Elementary and a long-time resident of Miami Beach.
A large number of children attending South Pointe Elementary spend a great deal of time at
nearby South Pointe Park and it is reassuring to know that the concession at the Park is
managed by a school parent and attended to by employees who are all residents of Miami
Beach and current or former students of Miami Beach Senior High School.
In December 2019 South Pointe Café hosted a fundraising event and generously donated a %of
the event's profits to FOSPE. We are looking forward to more similar opportunities in the
future.
We hope Stefano will continue in its role at South Pointe Park and we remain at your disposal
for additional information.
Ca7 u46,z
Casey Wood
President of FOSPE Children & Education Foundation (aka FOSPE, Inc.)
A registered 501c3 nonprofit
(305) 431-0209
caseytwood@gmail.com
www.fospefoundation.org
Page 826 of 1576