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R9E-Discuss Concession Stand Bldgs -Beachfront Concession Areas At 21st And 46thCily ol ltiomi Bcoch, l7O0 Convenlion Cenler Drive, Miomi Beoch, f lorido 33 I 39, www.miomibeochfl.gov FROM: DATE: COMMISSION MEMORANDUM Mayor Philip Levine and Members of the City Commission Jimmy Morales, City Manag ", ff7,April 15,2015 TO: MIAMIBEACH Concession Area: lnitialTerm: RenewalOptions: Concession Fee: SUBJECT: A DISCUSSION REGARDING THE IUANAGEMENT AND OPERATION OF CONCESSION STAND BUILDINGS, AND BEACHFRONT CONCESSION AREAS, CURRENTLY OPERATED BY TIIT'I WILCOX, !NC. ("CONCESS|ONAIRE"), LOCATED ADJACENT TO THE PUBLIC PARKING LOTS AT 21ST AND 46TH STREETS. ADMINISTRATION RECOMME NDATION Adopt either Resolution A or Resolution B, attached hereto and incorporated herein by reference. BACKGROUND On October 14,2009, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. RFP No. 05-09/10 was issued on October 20, 2009, and proposals were sent or provided to over eigh$-five (85) firms and concessionaires. On May 12,2010, the City Commission adopted Resolution No. 2010-27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, lnc.; and further authorized the Mayor and City Clerk to execute a concession agreement (the Agreement) upon completion of successful negotiations by the Administration. ANALYSIS The Agreement contains the following material terms: Concession stand buildings, and beachfront conoession areas, located adjacent to the public parking lots at 21't and 46th Streets Two (2)years commencing on November 1,2010, and ending on October 31,2012 Three (3) renewal options for one (1) year each (Note: the third, and last, renewal option will expire on October 31, 2015). A percentage of gross sales exceeding $250,000 as follows: Aoenda ttem RqEDate-Ft=l=711 @mmissbn Memqandum Tim Wilcox, lnc. - Beachfronf Conoessbn Agrcement Apfl 15, 2015 Page 2of 3 Gross Receiots PG $250.000 260/o $300.000 27o/o $350,000 28o/o $400,000 29o/o $450.000 30o/o tlnlmum Guarantee: Forty eight thousand dollars ($48,000) annually, paid at the beginning of each contract year For the first four (4) years of the Agreement, Concessionaire's gross sales, at each con@ssion locations, are itemized in the following chart: For the fir$ four (4) years of the Conoession Agreement, Concessionaire's gross sabs, and the conesponding fees paid to the City, are illustrated in the following chart: (% of Gross C,ontract Gross Minimum Over25(X) Year Perlod Sales % Incrcase Guanntee 26flo 1* LULO-LOILL 158,356 - 48,m 0 2 LilLL-L0lL2 202,224 2W6 ,$,m0 0 3 tutz-Loll3 275,M 7% ,18,m0 0 4 tLlLS-L0lt4 281,%2 3L% 48,m 8F08 861,r4L *Reflects Nine (9) Months of Sales Due to Delayed Opening Total Rent 48,m0 48,m0 48,000 Concessionaire is cunently in its final renewal term, ending on October 31,2015, and has submitted a letter to the City (attached hereto as 'Exhibit A'), requesting to extend the concession agreement for a period of five (5) years. Actually, since the Agreernent is in its final renewal term, the Goncessionaire's request must entail negotiation of a new concession agreement. ln the event the City Commission agrees to waive the competitive bidding requirement and grant Concessionaire a new Agreement, the City Manager would recommend such waiver subject to said new agreement containing the following minimum terms: Contract Year 1* 2 3 4 Pedod lyto- tolLl tuLt- Loltz 1L172- t0lt3 Llls- toh4 Reflects Nine (9) Months of Sales Due to Delayed Opening 21st Street Concession Chairs 73,124 59,453 6L198 96,629 Gross Sales 168,355 202,224 215,M 48th Strcet Concession Chairc 1&933 15,836 29,883 42,1q 19,535 38,U7 712 Commission Memorandum TimWihox, lnc. - Beachfronl Concessbn Agreement Aprill5, 2015 Page3d3 o Term: lnitial three (3) year term, with two (2) one (1) year renewal options, at the City's sole discretion; Minimum Guarantee: $65,000 annually, payable in equal quarterly installments of $16,250 each; and @: 6ross Receipts Percentage of Gross Receipts so- S2so.(m 26% S2s0.m1- $m.mo 27% s300.001- s3s0,m 28% $so.ml- S4m.(m 2996 S4m.m1and over w6 Each incremental increase in Gross Receipts shall result in the conesponding percentage rate contained above. For example, if Concessionaire's Gross Receipts are $325,000, the Conession Fee paid for the first $250,000 shall be 260/0 ($65,000), the Concession Fee paid for the next $50,000 shall be 27o/o ($13,500) and the Concession Fee paid for the last $25,000 shall be 28o/o ($7,000), resulting in a total Concession Fee of $85,500. ln the alternative, if the Ci$ Commission elects not to waive the competitive bidding requirement, the Administration seeks authorization to preparc and issue a Request for Proposals for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the Public Parking Lots at 213t and 46n Streets. The Finance and Citywide Projects Committee (FCWPC) considered this matter at its March 2, 2015 meeting and refened the matterto the Commission without a recommendation. CONCLUSION AND RECOIIUENDATION The Administration seeks a recommendation from the City Gommission regarding the management and operation of concession stand buildings and beachfrcnt concession areas, focated adjacent to the Public Parking Lots at 21"t and 46h Streets, and recommends that the Mayor and City Commission authorize the Administration to negotiate a new conoession agreement with Concessionaire, pursuant to Resolution A; or, in the atternative, authorize the Administration to pursue a Request for Proposals, pursuant to Resolution B. JLIIVKGB/MAS/MMM Exhibits:A Letter From Concessionaire Resolution A Resolution B T:\AGENDA\20'l S\ApriltTCED\Tim Wilcox\Tim Wilcox MEMO (,1-1 5-l 5).docx 713 Exhibit A 714 February 77,20!5 Dear Mr. Morales, I would like to requestthat my beach conoession agreement be renaled for an additionalflve years. My contract e4clres in October 31,2015, I feel that we are Just now capturlng the progress of the Colllns Park neighborhood. When we started lt was a realconstruction zone wlth very lltth parklng. ln the last 18 months as par*ing and hotel rooms have ome on line our buslness also lmproved, as urcll as the rent we pay to the Oty. We had 30 percent growth last year and expeA the same for period thls year. I will be speaking at the finance committee on Monday where I will tay out a detalled plan for growing the business over tfie next five years. My company has worked hard b give the beach goers a first class experience when they come to use the beach at 22nd skeet and 45 street. Still45 street ls very challenging due to the beach erosion and lack of pa*ing. At this time I feel we are the best company for thls Job. We have gotten to know these beaches so well over the last flve years and have great ldeas to contlnue growlng the beach experlence. We have relnvested in equlpment and our constantly lmprovlng our customer servlce experlence. lf you would like to meEt to discuss anything about thls agreemant or my proJectlons for the future growth of these concessions please feef free to contact me. I can be reached anytlme at 305-970-7147 . 715 RESOLUTION A RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COiIiiISS!ON OF THE CITY OF TIAMI BEACH, FLORIDA, AqCEPTING THE RECOMMENDATION OF THE CITY i'ANAGER AND wArvtNG, ByszrH vorE, THE cotpETlnvE BtoDtNG REeurREmENT, FINDTNG SUCH WAIVER TO BE IN THE BEST INTEREST OF THE GITY, AND AUTHORZING THE ADi'INISTRATION TO NEGOTIATE A CONCESSION AGREEMEI{T, BASED UPON THE MINIiIUU TERTS SET FORTH IN THIS RESOLUTION, BETWEEN THE CTTY AND TlT WILCOX, ING., FOR THE MANAGEiIENT AND OPERATION OF CONCESSION STAND BUILDINGS AND BEACHFRONT CONCESSTON_ AREAS, LOCATED ADJACENT TO THE puBlrc pARKrNc Lors AT zrs lro lerH stReErs; AND rF succEssFuL, AUTHORIZING THE CITY ITIANAGER AND CITY CLERK TO EXECUTE THE AGREEMENT. WHEREAS, on October 14,2009, the City Commission authorized the issuance of a Request for Proposab (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets; and WHEREAS, RFP No. 05-09/10 was issued on October 20,2009, and proposals were sent or provided to over eighty-five (85) firms and concessionaires; and WHEREAS, on May 12, 2010, the City Commission adopted Resoh.rtion No. 2010-27391, acoepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, lnc. (Concessionaire); and further authorized the Mayor and City Clerk to execute an agreernent upon completion of successful negotiations by the Administration; and WHEREAS, the City and Concessionaire executed a conoession agreement, dated November 22,2010, foran initial term of two (2) years commencing on November 1,2010 and ending on October 31,2012, with three (3) renewal options for one (1) year each (the Agreement); and UUIIEREAS, Concessionaire exercised allthree (3) of its renewal options, and the Agreement is scheduled to end on October 31, 2015; and VYIIEREAS, Concessionaire submitted a letter to the Gity requesting to extend the Agreement for a period of five (5) yeas; and VUIIEREAS, the Administration submitted Concessionaire's request to the Finance and Citywide Projects Committee (FCPC) at its March 2,2015 meeting, and the FCPC refened the request to the City Commission; and W{EREAS, in the event the City Commission agrees to waive the competitive bidding requirernent and authorize the Administration to negotiate a new agreernent with Concessionaire, the City Manryer would recommend such waiver subject to the new agreement containing the following minimum terms: 716 . Term: lnitial three (3) year term, with two (2) one (1) year renewal options, at the City's sole discretion;o Minimum Guarantee: $65,000 annually, payable in equal quarterly installments of $16,250 each; and. Concession Fees, as follows: 6rcss RecelsB Percentage of Gross Receiots s0- s2s0.000 26% S2so m1- s3rn.trn 2n6 S3m.m1- S3so-mo 2896 s350.m1- qrn.(m 2Yo Szlfl).01and over w6 NOW, THEREFORE, BE ]T DULY RESOLVED THAT THE MAYOR AND CITY COTITISSION OF THE CITY OF illAtl BEACH, FLORIDA, hereby accept the recommendation of the City Manager, and waive, by 5l7s vote, the competitive bidding requirament, finding sudt waiver to be in the best interest of the City, and authorize the Administration to negotiate a nc,w concession agreement, based upon the minimum terms set forth in this Resolution, between the Ci$ and Tim Wilcox, !nc., for the management and oper:ation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21"t and 46m streets; and if successful, authorize the City Manager and City Clerk to execute the Agreement. PASSED and ADOPTED this day of AfiEST: Rafael E. Granado, Gity Clerk Philip Levine, iiayor 2015. T:\AGENDA\201 5\Aprll\TGED\Tim Wilcox\Tim Wllcox RESO 1 (4-1 5-1 5).docx 717 RESOLUTION B A RESOLUTION OF THE MAYOR AND CITY COi'TIISSION OF THE CITY OF MIATI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADil|NISTRATION TO ISiSUE A REQUEST FOR PROPOSALS (RFP) FOR THE TANAGEUENT AND OPERATION OF GONCESSION STAND BUILDINGS AND BEACHFRONT CONCESSION AREAS, LOCATED ADJACENT TO THE PUBLIC PARKING LOTS AT 21ST AND 46IH STREETS. UV}IEREAS, on Octobet 14,2009, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets; and WHEREAS, RFP No. 05-09/10 was issued on October 20, 2009, and proposals were sent or provided to over eighty-five (E5) firms and concessionaires; and WHEREAS, on May 12, 2010, the City Commission adopted Resolution No. 201G27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, lnc. ("Concessionaire"); and further authorized the Mayor and City Clerk to execute an agreement upon completion of sucoessful negotiations by the Administration; and UI}IEREAS, the City and Concessionaire executed a Concession Agreement, dated November 22,2010, for an initial term of two (2) years commencing on November 1,2010 and ending on October 31,2012, with three (3) renewal options for one (1) year each (the Agreement); and YY}IEREAS, Concessionaire exercised allthrce (3) of its renewal options and the Agrcement is scheduled to end on Odober 31, 2015; and UTIIEREAS, Concessionaire submifted a letter to the City requesting to extend the Agreement for a period of five (5) yearc, which would entail a Sflh waiver of the competitive bidding requirement;ard UUIIEREAS, in the event the City Commission does not approve the waiver of the competitive bidding reguirement, the Administration would recommend that the City Commission approve the issuance of a new Request for Proposals (RFP), for the management and operation of conoession stand buildings and beachfront concession aneas, located adjacent to the public parking lots at 21st and 46th Streets. 718 NOW THEREFORE, BE 1T DULY RESOLVED THAT THE MAYOR AND CITY COillllSSlON OF THE GffY OF tllAMl BEACH, FLORIDA, hereby approve and authorize the Administration to issuance a Request for Proposals (RFP) for the management and operation of concession stand buildings and beachfront concession areas, located adjaent to the public parking lots at 21st and 46th Streets. PASSED and ADOPTED this day of 2015. ATTEST: Raf;ael E. Granado, Glty Glerk Philip Levine, liayor T:\AGENDA\201 5\April\TCED\Tim Wihor\Tim Wilcox RESO 2 ('l-'l 5-1S).docx 719 T.\AGENOA\201 5\April\TCED\Tinr Wilcox\Tim Wrlcox SUM (4-1 5-1 5).docx COMMISSION ITEM SUMMARY Condeneed TlUe: A discussion regarding the management and operalion of concession stand buildings, and beachfront conoession areas,l curenfy operated by Tim Wilcox, lnc. (Concessionaire), located adjacent to the public parking lots at 21' and 46"' Streets. Il/A Suppordng Data (Surveys, Environmental Scan, etc.): N/A On Odober 14, 2C[}9, the City Commission authorized the issuance of a Request for Proposals (RFP) to sdldt proposals for the manag€ment and operation of concession stand buildings, and beachfont concession areas, located adjacent to the public parkirp lots at 21st and 46th Streets. RFP No. 0$09/10 was issued on Oclober 20,2W9, and propoeals were s€nt or provided to over eighty-five (85) frms and concessionaires. On May 12,2010, the City Cornmission adopted Resolution No. 201G27391, ampting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations witr the topranked firm of Tim Wilcox lnc.; and further authorized the Mayor and City Clerk to execute a concession agreernent upon completion of successful negotiatiors by the Administration. The concession agreernent was for an initial term of two (2) years, commercing on Novernber 1, 2010 and terminating on Odober 31,2012, with three (3) additional one (1) year renewallerms. Concessionaire is ornently in its final renanral term, @mmencing on Novernber 1,2014 and ending on October 3'1, 2015, and has requested an additional fve (5) year exlension. Concessionaire a.rrenUy pays a concession fee, based on a percentage of gross sales, ranging fiorn 260/0 to 30p/o, induding a minimum guarantee of $48,000 annually. ln tre errent the City Commission agrees to waive the compditive bidding requirement and grant Concessionaire a nai, agreement, the City Manager would reoommend sudr waiver subject to said nsrv agreement containlngr 1) a term of three (3) years with tu,o (2) additional one (1) years renerval terms, at the Cit/s sole discretion, 2) a mirimum guarantee of $66,000 annually and 3) a revised schedule of percentage rent resultirB in addUonal fees to the City. ln the altemative, if he City Commission elects not to waive the competitive bidding requiranent" th€ Administration s€eks authorization b prepare and issue a Request for Proposals for the managernent and operation of concession stand buildings and beacfifont concesslon areas, located adjacent to the Public Parking Lots at 21st and 46th Streets. The Administration seeks a re@mmendation fiom the City Commission regarding the managernent and operation of concession stand buildings and beachfiont ooncession areas, located adjacent to the Public Parking Lots at 21st and 46tit Streets, and recommends that the Mayor and City Commission authorize the Adminisilrdion to negotido a neu, concessiofl agreement wih Concessionaire; or, in the altemative, authorize the Admini$ration to pursue a Request for Proposals. N/A Sklar, ext.61 E MIAMIBEACH AGENDA |?Eill 720 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMESIoN OF THE CITY OF ilIIATI BEACH, FLORIDA, ACCEPTING THE REGOMTENDATION OF THE CITY IIANAGER AND wArvrNG, By srt'vorE, THE coirpETtnvE BTDDING REeutREtENT, FINDTNG SUCH WAIVER TO BE !N THE BEST INTEREST OF THE C]TY, AND AUTHORZING THE ADMINISTRATION TO NEGOTIATE A GONCESSION AGREETENT, BASED UPON THE MINN,IUM TERMS SET FORTH IN THIS RESOLUTION, BETUVEEN THE CITY AND TIII' wlLCOX, ING., FOR THE ilIANAGEMENT AND OPERATION OF CONCESSION STAND BUILDINGS AND BEACHFRONT CONCESSTON AREAS, LOCATED AIUACENT TO THE puBLrc pARKTNG Lors AT 2rst AND mn sTREETS; AND rF succEssFul, AUTHOR'ZING THE CITY i'IANAGER AND C]TY CLERK TO EXECUTE THE AGREEI'ENT. WHEREAS, on October 14,2009, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets; and WHEREAS, RFP No. 05-09/10 was issued on October 20,2009, and proposals were sent or provided to over eighty-five (85) firms and concessionaires; and WHEREAS, on May 12, 20'10, the City Commission adopted Resolution No. 2010-27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim Wilcox, lnc. (Concessionaire); and further authorized the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration; and WHEREAS, the City and Concessionaire executed a concession agreement, dated November 22,2010, for an initial term of two (2) years commencing on November 1,2010 and ending on October 31,2012, with three (3) renewal options for one (1) year each (the Agreement); and WHEREAS, Concessionaire exercised allthree (3) of its renewal options, and the Agreement is scheduled to end on October 31, 2015; and UV}IEREAS, Concessionaire submitted a letter to the City requesting to extend the Agreement for a period of five (5) yearc; and WHEREAS, the Administration submifted Concessionaire's request to the Finance and Citywide Projects Committee (FCPC) at its March 2,2015 meeting, and the FCPC refened the request to the City Commission; and WHEREAS, in the event the City Commission agrees to waive the competitive bidding requirement and authorize the Administration to negotiate a new agreement with Concessionaire, the City Manager would recommend such waiver, subject to the new agreement containing the following minimum terms: . Term: lnitial three (3) year term, with two (2) one (1) year renewal options, at the Clty's sole discretion;o Minimum Guarantee: $65,000 annually, payable in equal quarterly installments of $16,250 each; and 721 . Concession Fees, as follows: Gross Receiots Percentage of Gross Receipts s0 - s2s0,000 26% S2so.m1- s3oo.ooo 27% s300.m1- s3s0.000 28% s3s0,001- 900.0m 29/o Srt00,001and over 3Mo NOW THEREFORE, BE IT DULY RESOLVED THAT THE ITIIAYOR AND CITY COTUMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby accept the recommendation of the City Manager, and waive, by 5t7h vote, the competitive bidding requirement, finding such waiver to bi in the best interest of the City, and authorize the Administration to negotiate a new concession agreement, based upon the minimum terms set forth in this Resolution, between the City and Tim Wilcox, lnc., for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21't and 46th streets; and if successful, authorize the City Manager and City Clerk to execute the Agreement. PASSED and ADOPTED this day of 2015. ATTEST: Rafael E. Granado, City Glerk Phillp Levine, Mayor T:\AGEN DA\201 SBpril\TCED\Tim Wilcox\Tim Wilcox RESO 1 (4-1 $1 5). docx APPROVED AS TO FORM & LANGUAGE 4-t-t5 - Dote 722 RESOLUTION NO. A RESOLUTION OF THE iIAYOR AND CITY COMi'ISSION OF THE CITY OF T,IIAiiI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADilIN|STRATION TO TSSUE A REQUEST FOR PROPOSALS (RFp) FOR THE iiANAGEiIIENT AND OPERATION OF CONCESSION STAND BUILDINGS AND BEACHFRONT CONCESSION AREAS, LOCATED ADJACENT TO THE PUBLIC PARKTNG LOTS AT 213TAND 46II{ STREETS. WHEREAS, on October 14,2009, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals for the management and operation of concession stand buildings, and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets;and WHEREAS, RFP No. 05-09/10 was issued on October 20,2009, and proposals were sent or provided to over eighty-five (85) firms and concessionaires; and WHEREAS, on May 12, 2010, the City Commission adopted Resolution No. 201&27391, accepting the recommendation of the City Manager pertaining to the ranking of firms; authorized the Administration to enter into negotiations with the top-ranked firm of Tim \Mlcox, lnc. ('Concessionaire"); and further authorized the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration; and WHEREAS, the City and Concessionaire executed a Concession Agreement, dated November 22,2010, for an initial term of two (2) years commencing on November 1,2010 and ending on October 31, 2012, with three (3) renewal options for one (1) year each (the Agreement); and WHEREAS, Concessionaire exercised allthree (3) of its renewal options and the Agreement is scheduled to end on October 31, 2015; and WHEREAS, Concessionaire submitted a letter to the City requesting to extend the Agreement for a period of five (5) years, which would entail a 5/7b waiver of the competitive bidding requirement;and WHEREAS, in the event the City Commission does not approve the waiver of the competitive bidding requirement, the Administration would recommend that the City Commission approve the issuance of a new Request for Proposals (RFP), for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. 723 NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMIIIIISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby approve and authorize the Administration to issue a Request for Proposals (RFP) for the management and operation of concession stand buildings and beachfront concession areas, located adjacent to the public parking lots at 21st and 46th Streets. PASSED and ADOPTED this ATTEST: day of _2015 T:\AGENDA\201 S\AprihTCED\Tim Wilcox\Tim Wlcox RESO 2 (4-1 5-1 s).docx Rafael E. Granado, City Glerk Philip Levine, Mayor APPROVED AS TO FORM & LANGUAGE & FOREXECUTION).L0*,f - 4't-5 CityAtlorpy - Dole 724