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HomeMy WebLinkAbout2004-25528 Reso RESOLUTION NO. 2004-25528 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONCESSION AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE MARKET COMPANY, INC., FOR THE MANAGEMENT AND OPERATION OF AGREEN MARKET IN THAT PORTION OF THE LINCOLN ROAD PUBLIC RIGHT-OF-WAY, BETWEEN DREXEL AVENUE AND LENOX AVENUE; SAID AGREEMENT HAVING AN INITIAL TERM OF ONE (1) YEAR, COMMENCING ON APRIL 1,2004, AND EXPIRING ON MARCH 31, 2005, WITH AN OPTION TO RENEW, AT THE CITY'S SOLE DISCRETION, FOR AN ADDITIONAL ONE YEAR TERM, SUBJECT TO THE TERMS PROVIDED IN THE AGREEMENT WHEREAS, on July 31, 2002, the Mayor and City Commission adopted Resolution No. 2002-24947, approving the issuance of Request for Proposals No. 57-01/02, for the operation and management of a green market on a portion of the Lincoln Road right of way, a street market on a portion of the Espanola Way right-of-way, and a street-market on Normandy Island on Rue Vendome (the RFP); and WHEREAS, said RFP was issued, proposals were received from interested parties, and after an evaluation and selection process, recommendations were forwarded to the Mayor and City Commission; and WHEREAS, on March 19,2003, via Resolution 2003-25154, the Mayor and City Commission approved the selection of The Market Company, Inc. (Market Company) and authorized the City Administration to negotiate three (3) separate concession agreements for a: 1) Lincoln Road Green Market; 2) Espanola Way Street Market; and 3) Normandy Village Street Market; and WHEREAS, the Administration has negotiated with The Market Company and agreement has been attained with regard to the Lincoln Road Green Market Concession Agreement, as attached hereto; and WHEREAS, said Agreement has an initial term of one (1) year, commencing on April 1 ,2004, and expiring on March 31,2005, with an option to renew, at the City's sole discretion, for an additional one (1) year term; and WHEREAS, said Concession Agreement is also terminable for convenience by either party and without cause, upon thirty (30) days written notice to the other party. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission approve and authorize the Mayor and City Clerk to execute the attached Concession Agreement by and between the City Of Miami Beach and the Market Company, Inc., for the Management and Operation of a Green Market in that Portion of the Lincoln Road Public Right-of-Way, between Drexel Avenue and Lenox Avenue; said Agreement having an initial term of one (1) year, commencing on April 1, 2004, and expiring on March 31,2005, with an option to renew, at the City's sole discretion, for an additional one year term, subject to the terms provi d in the Agreement. iw~ r. CITY CLERK PASSED AND ADOPTED THIS 17th day of Ma JMG:CMC:JD:rlr F:\DDH P\$ALL\ASSET\MARKETS\lINCOLNROAD\lINCOLNMARKET.RES.DOC APPROVEDNl1O FORM&LANGUAGE a FOR EXECUTION f~ 3/;-,/ tli Oata CllY OF MIAMI BEACH COI\INIISSION ITEM SUMMARY m Condensed Title: A Resolution Approving A Concession Agreement Between The City And The Market Company, Inc., For The Operation Of A Street Market On Espanola Way, Between Washington and Drexel Avenues, With An Initial Term Of One Year (April 1 , 2004 to March 31, 2005), With An Option To Renew, At The City's Sole Discretion, For An Additional One Year Term. A Resolution Approving A Concession Agreement Between The City And The Market Company, Inc., For The Operation Of A Green Market On Lincoln Road, Between Lenox and Drexel Avenues, With An Initial Term Of One Year (April 1,2004 to March 31, 2005), With An Option To Renew, At The City's Sole Discretion, For An Additional One Year Term. A Resolution Approving A Concession Agreement Between The Ci\y And The Market Company, Inc., For The Operation Of A Street Market On Rue Vendome, Between 718 Street and Normandy Drive, With An Initial Term Of One Year (April 1, 2004 to March 31,2005), With An Option To Renew, At The City's Sole Discretion, For An Additional One Year Term. Issue: Shall the Mayor and City Commission approve the Agreements with the Market Company for; 1) Espanola Wa Street Market; 2 Lincoln Road Green Market; and 3 Normand Villa e Street Market? Item Summa /Recommendation: On July 31,2002, the Mayor and City Commission approved the issuance ofRFP 57-01/02 for the operation and management of a green market on Lincoln Road, a street-market on Espanola Way, and a street- market on Rue Vendome. Said RFP was issued, and proposals received, and after an evaluation/selection process, recommendations were forwarded to the Mayor and City Commission. On March 19, 2003, the Mayor and City Commission approved the selection of the Market Company and authorized the Administration to negotiate three (3) separate concession agreements. The Administration and the Market Company have negotiated and agreement has been reached on three separate Concession Agreements for, 1) Espanola Way, 2) Lincoln Road, and 3) Normandy Village. For each market, the Market Company has agreed to pay the City a minimum guaranteed amount annually, equal to 75% of its prior calendar year (2003) gross receipts, or 15% percent of its gross receipts, whichever is greater. If 2004 revenues exceed 2003 revenues, the payments will increase as follows; 1) if revenues exceed110% of prior year revenues, an additional 2.5% of those revenues that exceed 100% through and including 120% of prior year revenues, will be remitted; and 2) if revenues exceed 120% of prior year revenues, an additional 5% of those revenues that exceed 120% of prior year revenues will also be remitted. For each market a security deposit, equal to approximately one month's rent (based on the average of 2003 revenues) will be remitted. Each market agreement has an initial term of one year (April 1 , 2004 to March 31,2005), with an option to renew each, atthe City's discretion, foran additional 1 year term. The Administration recommends that the Ma or and Ci Commission ado t the Resolutions. Adviso Board Recommendation: Finance and Ci ide Pro'ects Committee December 22, 2003 Financial Information: Approved . Assistant City Manager City Manager n 11~ l- AGENDA ITEM DATE R7D 3-17-0lL CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beach.f1.us COMMISSION MEMORANDUM From: Mayor David Dermer and Members of the City Commission Jorge M. GOnzalez~ City Manager Date: March 17, 2004 To: Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONCESSION AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE MARKET COMPANY, INC., FOR THE MANAGEMENT AND OPERATION OF A STREET MARKET IN THAT PORTION OFTHE ESPANOLA WAY PUBLIC RIGHT -OF- WAY, BETWEEN WASHINGTON AVENUE AND DREXEL AVENUE, SAID AGREEMENT HAVING AN INITIAL TERM OF ONE (1) YEAR, COMMENCING ON APRIL 1,2004, AND EXPIRING ON MARCH 31,2005, WITH AN OPTION TO RENEW, AT THE CITY'S SOLE DISCRETION, FOR AN ADDITIONAL ONE YEAR TERM, SUBJECT TO THE TERMS PROVIDED IN THE AGREEMENT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONCESSION AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE MARKET COMPANY, INC., FOR THE MANAGEMENT AND OPERATION OF A GREEN MARKET IN THAT PORTION OFTHE LINCOLN ROAD PUBLIC RIGHT-OF- WAY, BETWEEN DREXEL AVENUE AND LENOX AVENUE, SAID AGREEMENT HAVING AN INITIAL TERM OF ONE (1) YEAR, COMMENCING ON APRIL 1,2004, AND EXPIRING ON MARCH 31,2005, WITH AN OPTION TO RENEW, AT THE CITY'S SOLE DISCRETION, FOR AN ADDITIONAL ONE YEAR TERM, SUBJECT TO THE TERMS PROVIDED IN THE AGREEMENT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONCESSION AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE MARKET COMPANY, INC., FOR THE MANAGEMENT AND OPERATION OF A STREET MARKET IN THAT PORTION OF THE RUE VENDOME PUBLIC RIGHT-OF- WAY, BETWEEN 71sT STREET AND NORMANDY DRIVE, SAID AGREEMENT HAVING AN INITIAL TERM OF ONE (1) YEAR, COMMENCING ON APRIL 1, 2004, AND EXPIRING ON MARCH 31, 2005, WITH AN OPTION TO RENEW, ATTHE CITY'S SOLE DISCRETION, FOR AN ADDITIONAL ONE YEAR TERM, SUBJECT TO THE TERMS PROVIDED IN THE AGREEMENT ADMINISTRATION RECOMMENDATION Adopt the Resolutions, ANALYSIS On July 31,2002, the Mayor and City Commission adopted Resolution No. 2002-24947, approving the issuance of Request for Proposals (RFP) 57-01/02 for the operation and management of a green market on a portion of the Lincoln Road right-of-way, a street-market on a portion of the Espanola Way right-of-way, and a street-market on Normandy Island on Rue Vendome. Said RFP was issued, and proposals were received from several interested parties. After an evaluation and selection process, recommendations were forwarded to the Mayor and City Commission. On March 19, 2003, via Resolution 2003-25154, the Mayor and City Commission approved the selection of the Market Company, Inc. (Market Company) and authorized the Administration to negotiate three (3) separate concession agreements: 1) Lincoln Road Green Market (includes fruits, vegetables, juices, nuts and other related products; plants and cut flowers) 2) Espanola Way Street Market (include arts and crafts; cut flowers and plants; fruits, juices, nuts, and other related products) 3) Normandy Village Street Market (include arts and crafts; fruits, vegetables, cut flowers, orchids and other related green market products; tropical fruit preserves, dressings, dried fruits and nuts, honey and organic produce) The Administration has since met on several occasions with the Market Company, as well as with certain merchant organizations, neighborhood associations, and local property owners regarding the aforementioned agreements. The Administration, recommended that the matter be referred to the Finance and Citywide Projects Committee (Committee), in order to seek the Committee's direction, from a policy perspective, on the following issues that remained outstanding and unresolved. Oriainallv Proposed Fees for Vendor/Merchant Spaces . Market Company proposed a reduced rate for adjoining storefront merchants . The City Administration proposed that booth fees be consistent regardless of vendor status (whether adjoining storefront merchant or not) Oriainallv Proposed Security/Off-duty Police . Market Company proposed that off-duty police presence only be required during the initial four hours (including set-up) and final four hours (including load-out) of operation. . The City Administration proposed that those markets which require street closure (Espanola Way and Normandy Isle) have off-duty police presence daily, during all hours of operation (including set-up and load-out times), which is consistent with the City's policy for street closures. Oriainallv Proposed Financial Remuneration to the City . RFP required a minimum of 10% of gross receipts by the market producer(s) for each of the three (3) market agreements. . Market Company originally proposed the following annual monetary retum to the City: Lincoln Road: 15% of gross revenues to City (approximately $13,500 based on Market Company's 2003 estimate of $90,000 in gross revenues); plus $12,000 to Lincoln Road Marketing Inc., which represents 13% of projected gross revenues, (approximately $6,000 to Lincoln Road Marketing, Inc. and $6,000 for Lincoln Road street market publicity). Espanola Wav: 15% of gross revenues to City (approximately $18,000 based on Market Company's 2003 estimate of $120,000 in gross revenues); plus $18,000 to the Espanola Way Association, which represents 15% of projected gross revenues (approximately $9,000 in cash and $9,000 in in- kind services to the Espanola Way Association). Normandv Villaae: 15% of gross revenues to the City; plus approximately $6,000 in in-kind services to the North Beach Development Corporation, for market entertainment and special event production. As part of the negotiations, the Administration requested the Market Company remit, directly to the City, the additional remunerations referenced above, that would inure to the benefit of the area associations so that the City Commission could determine the proper allocation methodology and intended use and beneficiaries. However, during said negotiations, the Market Company indicated that said additional amounts are no longer being paid and that circumstances have changed, affecting the market revenues and price proposals submitted with respect to the additional remuneration, thereby offering only the 15% retum to the City. On December 22, 2003, the Finance and Citywide Projects Committee recommended that the Administration and the Market Company revisit these issues, reach mutual agreement regarding same, and bring closure to the three (3) concession agreements. Commissioner Bower agreed to facilitate the mediation ofthe outstanding issues. As a result of a January 3, 2004, on-site meeting at Espanola Way, which was attended by Commissioner Bower, Market Company representatives and City Administrative staff, and several subsequent meetings to bring closure to any outstanding issues, the parties agreed to the following terms and conditions: 1. Security durina Set-up and Move-Out: a. In a compromise regarding the Market Company's request to not provide an "Off-cluty" Police Officer during market "set-up" and "move-out" periods, a mutual agreement has been reached that a City Field Monitor would assume responsibility for a portion of the required hours and the Market Company would reimburse the City for the costs of said Field Monitor position, for a minimum of four (4) hours daily during "set-up" times on Saturday and Sundays. Said Field Monitorwould be responsible for monitoring all three markets as follows: Saturdav (4 hours) Espanola Way (2 hours) Normandy Market (2 hours) Sunday (4 hours) Espanola Way Market (2 hours) Lincoln Road Market (2 hours) b. The Market Company has further agreed that an "Off-duty" Police Officer, as required, shall be hired by them, for a minimum of four (4) hours daily during "move-out" periods on Friday, Saturday and Sunday, for the Espanola Way Market only. 2. Financial Remunerations to the City: a. Minimum Annual Guarantee: i. The Market Company has agreed to pay the City a minimum guaranteed amount annually, equal to 75% of its prior calendar year (2003) gross receipts, based on the amount of monies paid to the City, via its Special Event Permit during said calendar year period. b. Percentaae of Gross: i. In exchange for the City not regulating the fees the Market Company shall charge vendors/merchants for booth space, the Market Company agrees to remit, on monthly basis, fifteen (15%) percent of its gross receipts. In the event that the Market Company's calendar year 2004 revenues exceed the previous calendar year (2003) revenues, the Market Company agrees to increase its payments to the City in accordance to the following scale: 1. if revenues exceed11 0% of prior year revenues, the Market Company shall remit to the City an additional 2.5% 1 of those revenues that exceed 100% through and including 120% of the prior year revenues; and 2. if revenues exceed 120% of prior year revenues, the Market Company shall remit to the City an additional 5%2 of those revenues that exceed 120% of the prior year revenues to the City c. Based on the foregoing, and more specific to each market, minimum annual financial remuneration to the Citywill be: i. Lincoln Road: The greater of 15% of its gross revenues, or a minimum guaranteed amount of $8,400 (based on approximately 75% of Market Company's calendar year 2003 actual revenues remitted to City of $11,137. via their respective Special Event Permits) ii. Espanola Wav: The greater of 15% of its gross revenues, or a minimum guaranteed amount of $12,300 (based on approximately 75% of Market Company's calendar year 2003 actual revenues remitted to City of $16,367, via their respective 2003 Special Event Permits) iii. Normandv Villaae: The greater of 15% of its gross revenues, or a minimum guaranteed amount of $3,500 (based on approximately 75% of Market Company's calendar year 2003 actual revenues remitted to City of $4,595, via their respective 2003 Special Event Permits) d. Security Deposit: i. The Market Company has agreed to pay a security deposit, in an amount equal to approximately one month's rent, based on the average of revenues remitted to the City, via its Special Eyents Permit for calendar year 2003. 1. Lincoln Road: $1,000 (based on approximately 1/12lh of actual revenue remitted to the City by the Market Company of $11,137, via its respective Special Event Permits for calendar year 2003) 2. Espanola Way: $1,400 (based on approximately 1/1ih of actual revenue remitted to the City by the Market Company of $16,367, via its respective Special Event Permits for calendar year 2003) 3. Normandy Villaae: $400 (based on approximately 1/121h of actual revenue remitted to the City by the Market Company of $4,595, via its respective Special Event Permits for calendar year 2003) 1 Effectively equates to 17.5% of gross revenues between 100% and 120% of prior year revenue 2 Effectively equates to 20% of gross revenues that exceed 120% of prior year revenue The Administration recommends that the Mayor and City Commission approve three (3) separate Concession Agreements by and between the City of Miami Beach and the Market Company, Inc., for the management and operation of: 1) for the Lincoln Road Green Market, 2) for the Espanola Way Street Market, and 3) for the Normandy Village Street Market, said agreements each having an initial term of one (1) year, commencing on April 1 ,2004, and expiring on March 31, 2005, with options to renew each, at the City's sole discretion, for an additional one year term. -:lVi,. JMG\CMC\JD\r1y ~6 F:\ODHP\$ALL \ASSE1\MarketslEspanolaWaylEspanolaMarket.MEM.doc