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1915.20r5
MIAMIBEACH
City Commission Meeting
ADDENDUM MATERIAL 1
City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive
July 31,2015
Mayor Philip Levine
Vice-Mayor Edward L. Tobin
Commissioner Michael Grieco
Commissioner Joy Malakoff
Comm issioner Micky Steinberg
Commissioner Deede Weithorn
Commissioner Jonah Wolfson
City Manager Jimmy L. Morales
City Attorney Raul J. Aguila
City Clerk Rafael E. Granado
Visrt us at www.miamibeachft.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Chapter 2, Article Vll, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the
registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the
City Gommission, any City Board or Committee, or any personnel as defined in the subject Code
sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office.
Questions regarding the provisions of the Ordinance should be directed to the Office of the City
Attorney.
ADDENDUM AGENDA
Moment Of Silence ln Honor Of Jacqueline Hertz, Great LadyAnd Resident Of Normandy lsland.
(Sponsored by Commissioner Michael Grieco)
R2 - Competitive Bid RePorts
R2A RequestApproval To lssue An Addendum To Request For Proposals (RFP) 2015-178-WG, For
Automated Teller Machine (ATM) Services AtVarious City-Owned Facilities, Amending The RFP
Revenue Proposal Form.
(Procurement)
4.
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4.
AGENDA
Moment Of Silence ln Honor Of Jacqueline Hertz, Great
Normandy lsland.
(Sponsored by Commissioner Michael Grieco)
Lady And Resident Of
Agenda ttem /
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COMMISSION ITEM SUMMARY
Condensed Title:
REQUEST APPROVAL TO ISSUE AN ADDENDUM TO REQUEST FOR PROPOSALS (RFP) 2015-178-
wG, FOR AUTOMATED TELLER MACHTNE (ATM) SERVICES AT VARTOUS C|TY-OWNED FACILITTES,
AMENDING THE RFP REVENUE PROPOSAL FORM.
Item Summary/Recommendation
On May 6, 2015, the Mayor and Commission approved the issuance of the subject RFP. Following the
issuance of the RFP and the Pre-Proposal meeting held to provide prospective bidders with an opportunity to
ask questions regarding any portion of the RFP or its process, the City received concerns from several bidders
regarding the format of the Revenue Proposal Form included in the RFP. Primarily, the concerns arose from
the current Revenue Proposal Form which requires bidders to provide both an annual minimum guarantee and
a revenue share to the City. The Revenue Proposal Form states that annual minimum guarantee plus the
revenue sharing proposal is to be added toqether to determine the points that will allocated to each proposer
for its revenue proposal. However, the Revenue Proposal Form appears contradictory to the Section 10 (p.27)
of the specifications.
The Administration has reviewed the concerns raised by bidders and believes that, despite the inadvertent
discrepancy, the intention was to allow bidder's to propose a revenue sharing structure based on a percentage
of gross sales, with a portion of the revenue to the City to be paid monthly as a minimum guarantee. ln this
manner, the City will receive a monthly minimum payment to be supplemented on an annual basis by a "true-
up" payment when the City's share of the agreed to revenue sharing proposal exceeds the minimum
guarantee. An example of this methodology is noted in the attached memo.
When the concerns first arose, staff believed it may have been more prudent to evaluate bidders on the
annual minimum guarantee as this is the only amount that will be fixed during the term of the contract. This is
due to the City's share of gross revenue fluctuating based on the percentage offered and each bidder's ability
to generate revenue. However, after further review, the Administration recommends that bidders be evaluated
on the proposed gross revenue share because, although not a guarantee, this amount could end up being
significantly higher than the minimum annual guarantee.
Therefore, the City Manager recommends releasing and addendum to the RFP amending the revenue
proposal form in accordance with the attached to clarify the City's intent that revenue proposal evaluation
points are to be allocated to the proposed percentage of revenue to be received by the City. The
Administration believes this will result in the best overall financial return for the City.
CONCLUSION
The City Manager recommends that the Mayor and City Commission of the City of Miami Beach, Florida,
approve the issuance of an addendum to the RFP, amending Appendix E, Revenue Proposal Form, of RFP
2015-178-WG, for the lnstallation and Operation of Citywide Automated Teller Machines (ATM) at Various City
Owned Facilities.
Advisorv Board Recommendation:
Financial lnformation :
SUuIy\PROCUREMENT JULY 3'1 \RFP 201
AGENDA ITEM R 2A
Build And Maintain Prioritv lnfrastructure With Full Accountabili
Financial lmpact Summary: All funds will have been previously approved for the described scope of work.
Alex Denis, Director Ext # 6641
(s MIAMIBEACH
178-WG A
o*'ra -? -31'ti5
MIAMIBEACH
City of Miomi Beoch, I 200 Convention Center Drive, Miomi Beoch, Florido 33I 39, www.miomibeochfl.gov
COMMISSION MEMORANDUM
TO:Mayor Philip Levine and Members oflthe City
FROM: Jimmy L. Morales, City Manager
DATE: July 31 ,2015
SUBIECT: REQUEST APPROVAL TO ISSUE AN ADDENDUM TO REQUEST
FOR PROPOSALS (RFP) 2015-178-WG, FOR AUTOMATED TELLER
MACHINE (ATM) SERVTCES AT VARTOUS C|TY-OWNED FAC|L!T|ES,
AMENDING THE RFP REVENUE PROPOSAL FORM.
ADMIN ISTRATION RECOMMENDATION
Approve the issuance of Addendum to the RFP.
BACKGROUND
On May 6, 2015, the Mayor and Commission approved the issuance of the
subject RFP. Following the issuance of the RFP and the Pre-Proposal meeting
held to provide prospective bidders with an opportunity to ask questions
regarding any portion of the RFP or its process, the City received concerns from
several bidders regarding the format of the Revenue Proposal Form included in
the RFP. Primarily, the concerns arose from the current Revenue Proposal Form
which requires bidders to provide both an annual minimum guarantee and a
revenue share to the City. The Revenue Proposal Form states that annual
minimum guarantee plus the revenue sharing proposal is to be added toqether to
determine the points that will be allocated to each proposer for its revenue
proposal. However, the Revenue Proposal Form appears contradictory to the
Section 10 (p. 27) of the specifications which states that:
During any term of the agreement, if the amount of the annual
[City's share of the gross revenue yielded by the operator] is
greater than the annual [Minimum Guarantee], then the successfu/
proposer shall pay to the City the difference between the [City's
share of the gross revenuel amount and the fMinimum Guarantee]
amount.
6
City Commission Memorandum - RFP for lnstallation, Operation, Maintenance, and Management of
Automated Teller Machines (ATM) at Vaious City-owned Facilities
May 6,2015
Page 2 of 2
The Administration has reviewed the concerns raised by bidders and believes
that, despite the inadvertent discrepancy, the intention was to allow bidder's to
propose a revenue sharing structure based on a percentage of gross sales, with
a portion of the revenue to the City to be paid monthly as a minimum guarantee.
ln this manner, the City witl receive a monthly minimum payment to be
supplemented on an annual basis by a "true-up" payment when the City's share
of the agreed to revenue sharing proposal exceeds the minimum guarantee. An
example of this methodology is noted below:
Proposed Revenue Share of 50% to the City $250,000
(Assume an Annual Gross Revenue Yield of
$5oo,ooo)
Proposed Annual Minimum Guarantee $25,000
"True-up" Amount Due to the City on Contract $225,0001
Anniversarv Date
$250,000 - $25,000 already paid in monthly installments.
When the concerns first arose, staff believed it may have been more prudent to
evaluate bidders on the annual minimum guarantee as this is the only amount
that will be fixed during the term of the contract. This is due to the City's share of
gross revenue fluctuating based on the percentage offered and each bidder's
ability to generate revenue. However, after further review, the Administration
recommends that bidders be evaluated on the proposed gross revenue share
because, although not a guarantee, this amount could end up being significantly
higher than the minimum annual guarantee.
Therefore, the City Manager recommends releasing and addendum to the RFP
amending the revenue proposal form in accordance with the attached to clarify
the City's intent that revenue proposal evaluation points are to be allocated to the
proposed percentage of revenue to be received by the City. The Administration
believes this will result in the best overall financial return for the City.
CONCLUSION
The City Manager recommends that the Mayor and City Commission of the City
of Miami Beach, Florida, approve the issuance of an addendum to the RFP,
amending Appendix E, Revenue Proposal Form, of RFP 2015-178-WG, for the
lnstallation and Operation of Citywide Automated Teller Machines (ATM) at
Various 60tv Owned Facilities.
Ikl!^l^5W^lfSJ#R"-Fp 2ols-.r7a-wc rnstaration and operation or Automated r6rer Machines (ArM) at various city-owned Facirities.-
ISSUANCE MEMO-doc
Page 2 ol 2
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REVISED
APPENDIX E
REVENUE PROPOSAL FORM
Proposer affirms that the prices stated on this form represents the entire cost of the items, except as otherwise allowed in this
RFP, in full accordance with the requirements of this RFP, inclusive of its terms, conditions, specifications and other
requirements stated herein, and that no claim will be made on account of any increase in wage scales, material prices,
delivery delays, taxes, insurance, cost indexes or any other unless a cost escalation provision is allowed herein and has been
exercised by the City Manager in advance. This Revenue Proposal Form shall be completed mechanically or, if manually, in
ink. Revenue Proposal Form completed in pencil shall be deemed non-responsive. Atl conections shall be initialed.
tThe Percentage Gross (PG) Revenue to be provided to the City shall be utilized to allocate Cost Points in the
Evaluation of Proposals.
zThe City Reserves the Right to Negotiate the Minimum Guaranteed Revenue to the City during Contract
Negotiations.
(c)
Total
(for point calculation
purposes only)
(A)
Percentage 0f
Revenue to City of
MiamiBeach
(B)
Gross Annual
Revenue
(for point calculation
Percentage Of Gross (PG)
Transaction/Surcharge Revenue To
Be Provided To The Ci
Authorized
Address:
T e:
Emailr
Authorized
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