HomeMy WebLinkAboutOIG No. 25-25 Investigation of Poseidon Ferry LLC No-Bid Contract
Joseph M. Centorino, Inspector General
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TO: Honorable Mayor and Members of the City Commission
FROM: Joseph Centorino, Inspector General
DATE: December 29, 2025
PROJECT: Investigation of Poseidon Ferry, LLC No-Bid Contract
OIG No.: 25-25
EXECUTIVE SUMMARY
The Miami Beach Office of the Inspector General (OIG) has concluded its investigation into a no-
bid contract that included a substantial public subsidy to support a cross-bay passenger water
taxi/ferry service between Miami Beach and Downtown Miami. This investigation began after
concerns were raised by a citizen complaint about the award of a no-bid contract to Poseidon
Ferry, LLC (Poseidon), following its failed performance in the City.
After Poseidon’s relaunch under the contract on June 30, 2024, a City-issued ridership report for
July revealed that out of 682 scheduled trips by Poseidon, 133 were canceled, and another 139
trips had no riders, despite the offering of free rides to Miami Beach residents, employees, and
children under 12. The ferry also experienced operational issues shortly after beginning
operations, resulting in service disruptions. The program was suspended 21 days after its launch
and was officially terminated by the City on September 16, 2024, through a Notice of Default
issued to Poseidon’s owner, Johnathan Silvia.
The investigation revealed that the Poseidon pilot program was initially proposed in February
2023 by former Commissioner David Richardson and was referred to the Finance and Economic
Resiliency Committee (FERC), which he chaired. Poseidon’s representatives informed the FERC
that the company had incurred a loss of at least $500,000 in the previous year and that its capital
was depleted. Yet, the project was sent to the City Commission at its June 28, 2023, meeting,
with a favorable recommendation to waive the formal competitive bidding requirement, and for
the City Administration to negotiate a one-year agreement with Poseidon.
The Resolution for approval of the item was initially placed on the consent agenda, but was pulled
from that agenda by then Commissioner, now Mayor, Steven Meiner. Meiner expressed his
general dislike for bid waivers and his belief that the City should put the project out to bid.
Commissioner Richardson moved for the adoption of the Resolution, which was approved by the
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Commission on a with a 6-1 vote, with the only dissent from Commissioner Meiner. The
agreement with Poseidon was executed seven months later, on March 14, 2024.
The Commission's decision to waive the formal competitive bidding process and directly negotiate
a contract with Poseidon effectively excluded the Procurement Department from the process,
thereby avoiding the requirements in Section 2-369 (Award of Contract), which would have
required evaluating Poseidon’s ability, capacity, and skills to perform the contract; its ability to
complete the work within the specified timeframe without delays or interference; its character,
integrity, reputation, judgment, experience, and efficiency; the quality of its past performance; and
its compliance with relevant laws and regulations.
The OIG found that, following the Commission action, the City failed to conduct any due diligence
on Poseidon’s capacity to perform the contract. The City Administration’s Memorandum to the
Commission for its June 28, 2023, meeting recommended approval of the Resolution, but
concluded by suggesting that the project should go out to bid. The OIG found that no feasibility
studies were conducted by any City staff at any time to assess whether Poseidon was capable of
operating the planned water taxi/ferry program, despite three previous unsuccessful attempts
.
After Poseidon’s second failed Miami Beach operation that ended in December 2022, owner
Johnathan Silvia moved to Palm Coast, Florida. Before departing in January 2023, Silvia signed
an agreement with Epic Boat Tours, LLC (Epic), granting the company use of the vessel in
exchange for financial responsibility and a 60% ownership stake. Epic later defaulted and stopped
payments by March 2024. Silvia did not inspect the vessel until its relaunch on June 30, 2024,
and told the OIG, “I walked on the boat, I was mortified. There was a literal clam colony growing
on the bow thruster.”
The OIG also found that on June 6, 2024, before its relaunch on June 30, 2024, Poseidon
provided the Transportation Department with a detailed financial forecast spreadsheet, prepared
by Jonathan Silvia, which identified existing liabilities exceeding $1 million. It also included a
“Breakeven Analysis Year 1,” predicting monthly sales of $103,128. Silvia’s projections
incorporated income from concession sales, including alcohol. However, the City banned the
sale of alcohol and required Poseidon to offer free rides to Miami Beach residents and employees
during the first month, which significantly affected its ability to generate income.
The OIG observed that the Poseidon operating account from January 1, 2024, to October 31,
2024, showed ongoing financial instability, with frequent overdraft fees and few consistent
deposits. The City of Miami Beach's monthly subsidy deposit of $40,249.27 in August 2024 was
quickly spent on multiple payments, apparently to Poseidon employees, nearly depleting the
account. Most other months had little to no incoming funds, and the account balance often
remained in the low hundreds or single digits.
This report presents the OIG's findings on the Poseidon water taxi pilot program. It covers the
history, decision-making process, financial and operational problems, and systemic issues that
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led to the program’s failure. It concludes with recommendations to help the City resolve these
issues and build public trust in its procurement and oversight practices.
Although good intentions may have driven the relaunch of the water taxi/ferry program, the
Poseidon pilot program serves as a cautionary tale of how bypassing institutional controls and
safeguards on any contract can lead to waste, mismanagement, and damage to the City’s
reputation. In future public-private partnerships, the City should consider implementing structural
reforms that promote transparency, accountability, and good governance.
The OIG appreciates the assistance of the Transportation Department and other City
Departments—Procurement, Information Technology, and the offices of the City Clerk and City
Attorney—all of which cooperated with this investigation, and also wishes to recognize the
cooperation of Poseidon’s owner, Johnathan Silvia, for his candor in acknowledging the financial
obstacles faced by his company.
OIG Authority
Section 2-256 of the Code of Miami Beach provides that the City of Miami Beach Office of the
Inspector General is created as an independent body to perform investigations and audits,
reviews, and oversight of municipal matters, including city contracts, programs, projects, and
expenditures, in order to identify efficiencies and to detect and prevent fraud, waste,
mismanagement, misconduct, and abuse of power. That Code section provides that the
organization and administration of the office shall be sufficiently independent to assure that no
interference or influence external to the office adversely affects the independence and objectivity
of the inspector general. The Code also provides that the OIG has the power to require reports
from the city manager, city departments, city agencies, boards, and committees, and city officers
and employees, regarding any matter within the jurisdiction of the inspector general, as well as
the power to subpoena witnesses, administer oaths, and require the production of records
regarding any matter within the jurisdiction of the office.
Historical Background
For over ten years, the City of Miami Beach has attempted to establish a successful water taxi
service. Each effort has encountered challenges, including high costs, low ridership, and
mechanical issues. Water taxi services were initially recommended in the City’s Blueways Master
Plan and Transportation Master Plan in November 2014, which viewed waterborne transit as a
potential means to alleviate traffic congestion. However, these recommendations were not
implemented.
In 2014, the City issued Invitation to Negotiate #2014-326-J for a public waterborne
transportation concession. Only one proposal was received from Water Taxi Miami, resulting in
a one-year pilot program in December 2016. The service operated between the Purdy Avenue
dock at Maurice Gibb Park, Omni Bayside Marketplace, and the Miami Beach Marina. The pilot
program was competitively procured and operated at no cost to the City. However, the fare was
$15 per one-way trip, which was considered prohibitively expensive at that time. The service was
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viewed as tourist-oriented, with limited hours and low ridership. It was terminated in 2017 due to
insufficient demand.
Poseidon was founded by Johnathan Silvia in 2019 with the intention of filling the gap in water
transportation between Miami and Miami Beach. He secured an SBA loan to purchase a vessel
and launched the ferry service on November 29, 2020. The City issued a Business Tax Receipt
(BTR) for its operation in Miami Beach. The service ran between the Hyatt Regency at 400 SE
2nd Avenue in downtown Miami and Bentley Bay Marina at 520 West Avenue in Miami Beach.
The service lasted only six weeks due to low ridership and the onset of the COVID-19 pandemic.
In April 2021, Johnathan Silvia applied for and received $20,000 in Community Development
Block Grant funds from the City through its COVID-19 grant program. Poseidon then resumed
operations on August 16, 2021. Low ridership remained a challenge. During this period, the ferry
operated as a commuter service during the day and as a party cruise in the evening. The ferry
ceased operations on December 31, 2022, because of ongoing low ridership and financial issues.
Following Johnathan Silvia’s move from South Florida to Palm Coast in January 2023, Poseidon
continued to operate in Miami Beach as a party cruise vessel under the management of Epic Boat
Tours until it defaulted on its agreement with the City in March 2024. Johnathan Silvia was not
involved in the daily operations or the maintenance and upkeep of Poseidon from January 2023
until its relaunch in the 2024 pilot program, the City’s third major attempt at a cross-bay commuter
ferry service and the first to receive a public subsidy.
INVESTIGATION
The OIG conducted a thorough investigation of the Poseidon pilot program. This included
reviewing numerous internal and external documents, such as City Commission and FERC
meeting agendas, minutes, transcripts, financial records, and internal memos. The OIG
conducted a detailed financial analysis of the subsidy payments to Poseidon Ferry, tracing the
flow of funds. A timeline was created to show the sequence of events (Exhibit 1).
Interviews were conducted with key individuals, including Jonathan Silvia, owner of Poseidon;
Wynter Fromhartz, a Poseidon captain; Director Jose Gonzalez and Assistant Director Otniel
Rodriguez from the Transportation and Mobility Department; and Steven Meiner, who during the
time of the investigation was the Mayor of Miami Beach. The OIG also gathered input from
Michael O’Shea, a Poseidon deck hand; Kristy Bada, Chief Procurement Officer; Rafael
Granado, City Clerk; and Ricardo Dopico, City Attorney. The OIG contacted former
Commissioner David Richardson for input but did not receive a response.
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Origins of the No-bid Agreement and Subsidy
During the May 24, 2023, FERC meeting, Commissioner Richardson stated that he first proposed
the idea during a budget workshop in the FY 2023/2024 budget process, and that he had
requested a new proposal from the previous operator, Poseidon.
Records reviewed by the OIG showed that on February 28, 2023, Poseidon representative Rafael
Andrade forwarded an email proposal to Commissioner Richardson, which he had received from
Poseidon owner Silvia. The proposal contained financial projections based on a monthly subsidy
of $90,230.43, totaling $1,082,765 for the year (Exhibit 2). According to testimony from Silvia, he
submitted the proposal after being contacted by Andrade, who informed him about the City’s
desire to launch a ferry service pilot project. Silvia then provided Andrade with the above-
mentioned financial proposal detailing the project costs. After sharing these figures with Andrade,
Silvia was advised by Andrade to “really sharpen your pencil … see if you can get this a little more
viable for the City.” Silvia reduced the costs and submitted the final projections to the City. The
subsidy was proposed to help cover operational costs, including insurance and other expenses.
On March 8, 2023, Commissioner Richardson sent an email to his aide and also to then City
Attorney Rafael Paz, that stated as follows:
I want to add a new referral to FERC to study the feasibility of having a ferry service
subsidized by Government, including Miami Beach and possibly City of Miami and
County. Ferry to run back and forth from South Beach to Downtown Miami area.
This would be an interim solution until such time as a permanent mass
transportation solution is deployed. Study the financial requirement for subsidizing
the mode of transportation. Study the possible ticket price for patrons, as I’m not
looking at a free ferry service, but one that is affordable to everyday users.
On the same date, Richardson reviewed the draft of the referral provided by City Attorney Paz
and requested that the short title be amended to avoid the word “reinstate,” clarifying that the
intent was to study and potentially implement a new or revised service, rather than simply revive
the old one. The final Commission Memorandum dated March 27, 2023, from Commissioner
Richardson, formally referring the matter to FERC, stated, in part, the following:
My intent with this item is to promote alternative modes of transportation until such
time as a permanent mass transportation solution is developed. For this reason, I
would like for the City to study the feasibility of a ferry service that is subsidized by
the City, and potentially the City of Miami and Miami-Dade County. Ticket pricing
is a key component of spurring new consumer behavior, and although I do not
believe I will support providing “free” ferry service, we should do everything we can
to make fares more affordable to the general public, as doing so will increase
ridership.
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A March 24, 2023, email from the City Transportation Department to Jonathan Silvia asked if he
planned to resume the ferry service. Silvia replied that he planned to restart the service on June
1, 2023, and stated, “We are currently working with Commissioner Richardson to get the service
going again.”
At the March 27, 2023, Commission Meeting, the Richardson referral to FERC to discuss water
taxi/ferry service to be subsidized by the City was approved on the consent agenda. A separate
referral from Commissioner Meiner to the same committee, as well as to the Public Safety and
Neighborhood Quality of Life Committee (PSNQLC), was also approved to discuss obtaining
Federal, State, and County funding for a free water taxi/ferry service.
The subject of the referral made at the Commission meeting discussed implementing a water
taxi/ferry service and providing a subsidy for the program. It stated,
Referral to the Finance and Economic Resiliency Committee to discuss
implementing a water taxi/ferry service in the city, and providing a potential subsidy
for the program, in an effort to reduce the fares charged to passengers and
promote an alternative mode of transportation between Miami Beach and
downtown Miami.
At the time of the referral, the only proposal that had been received by the City was the one
detailed in Exhibit 2 noted above. On May 14, 2023, Richardson received an email from Rafael
Andrade containing another financial proposal from Poseidon:
The projected cost to relaunch and operate our Miami Beach ferry services for 12
months is approximately $1,100,000.The projected annual revenues (ticketing,
concessions, leisure) are approximately $600,000. Assuming Poseidon Ferry
retains one-hundred percent of revenues, a $600,000 annual subsidy would be
required from the City, payable to Poseidon Ferry at a rate of $50,000 per month
for the first 12 months to offset operational expenses (Exhibit 3).
Finance and Economic Resiliency Committee (FERC) Meetings
These items were first discussed at the FERC Committee Meeting on May 24, 2023. Chairman
Richardson led the meeting and introduced the items on which Transportation Director Jose
Gonzalez was asked to speak. The Transportation Director clarified that both federal and state
grants typically require competitive bidding and noted that the City had previously received state
grants covering up to 50% of operating costs for as long as three years. However, the application
period for state grants was closed for that fiscal year. Current grants at that time would be limited
to capital expenses, such as purchasing vessels or constructing docks. The Committee agreed
that, although grants were essential for long-term sustainability, immediate funding would need to
come from the City, with the hope that a pilot program could fill the gap until new grant
opportunities became available. They also discussed planning for local matches, which ultimately
did not materialize.
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Chairman Richardson asked Ralph Andrade, representing Poseidon, and Johnathan Silvia, the
owner, about the company's past operations and its readiness to relaunch. Andrade explained
that the service had failed due to high commercial dock rent, at $25,000 per month, and low
ridership, which had resulted in a substantial loss: “I think he lost $500,000 or so his last year of
operation.” Silvia added that operational and permitting challenges further drained the company’s
capital, “with all the bumps in the road along the way, that depletes capital.” Both emphasized
that a public subsidy would be vital for success, with Silvia stating, “without some form of public
subsidy for a few years, whether it’s us or any other operator, the service needs that push in order
to gain popularity amongst the residents.”
Andrade emphasized that Poseidon was prepared to resume operations immediately: “he has a
ferry, which I think accommodates 150 people or so. It’s parked across the bay, ready to launch.”
The readiness was confirmed by Silvia, who described the vessel’s upgrades and capacity, and
presented a proposal for the city’s assistance to relaunch the service.
Chairman Richardson expressed his desire to proceed quickly with a direct award to Poseidon,
rather than waiting for a formal competitive bidding process. He said, “I very much want to do a
competitive procurement, but that will take months. So, what I would like to do is start immediately
with a source-erected program with the prior provider and then move into a competitive [process].”
Transportation Director Gonzalez noted that, “what you’re referring to would entail some sort of a
bid waiver. If we go directly with Poseidon, it’s also a change of location from where Poseidon is
currently operating,” highlighting the need to bypass the formal bidding process. The City Attorney
further clarified that the motion “authorize[s] the city to negotiate the agreement with Poseidon,
will waive competitive bidding if… required.” He outlined that the city would work directly with
Poseidon to identify operational locations and finalize terms, including public pricing.
Richardson clarified that the sole-source contract would be limited to the remainder of that fiscal
year and the next, after which a competitive procurement would be initiated. Poseidon’s owner
agreed to this approach. Richardson also emphasized that any subsidy would be paid monthly,
not upfront, and instructed procurement staff to begin preparing for a competitive process after
the pilot program. The Committee agreed that waiving the formal bidding process was necessary
to expedite the pilot program, with the understanding that a competitive process would follow
afterward.
While voicing concerns about the project's feasibility, the Committee decided to proceed with a
pilot program for the ferry service. The item was referred to the full Commission with a
recommendation to waive bidding, initiate negotiations with Poseidon, select operational sites,
and establish terms, including public pricing and monthly subsidies. The Committee also agreed
to refer related infrastructure and grant issues to other Committees for further review.
The project was also discussed at the FERC meeting on June 23, 2023. During that meeting,
Chairman Richardson talked about advancing the Poseidon project and securing funding with the
Committee. Richardson listed the items, emphasizing the need to “start this pilot” without delay.
CFO Jason Greene confirmed a $600,000 budget request for the Ferry Service to cover the
projected subsidy. The Committee discussed pursuing grants for the Poseidon Ferry pilot and
future water taxi service, reviewing available grants and noting missed opportunities. They
instructed the administration to explore grant options.
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June 28, 2023, Commission Meeting
During its June 28 meeting, the City Commission discussed the Resolution, which had been
pulled from the Consent Agenda by Commissioner Meiner, which would waive the competitive
bidding process and approve a one-year pilot water taxi service agreement with Poseidon.
Commissioner Richardson, as sponsor of the item, emphasized the urgency and purpose behind
the proposal. “This is simply a pilot program… I want to get started on this by October 1,” clarifying
that he had already told the operator that a competitive procurement process would take place
within 12 to 18 months.
Commissioner Meiner expressed general support for the ferry initiatives, noting that, although
their approaches differ, his focus was more on long-term goals, such as securing federal and state
funding. He recognized the pilot’s unique nature but reiterated his concern about bypassing
competitive bidding, saying, "You know I'm not a big fan of the bid waivers." He stressed, "I still
felt we could have done a procurement," and suggested that even with the city's existing
relationship with the vendor, a formal procurement process might have been better. Richardson
then moved for a vote on the item, which passed 6-1, with Meiner casting the lone dissenting
vote.
During the OIG’s interview of Mayor Meiner, he explained that he often votes against no-bid
contracts, including this one, because he believes the process should be transparent and fair, and
he is concerned about appearances of favoritism or impropriety. He did not support the Poseidon
item because he felt his own proposal for a comprehensive water taxi system was repeatedly
conflated with it, even though they are fundamentally different. Meiner doubted Poseidon’s
chances of success and was worried that its failure could negatively affect his broader vision for
waterborne transit in Miami Beach.
The OIG found that, despite the concern raised that the procurement process could take months
as justification for the no-bid contract, the process of awarding Poseidon a no-bid, sole-source
contract took at least 12 months, during which time an open bidding process could have occurred
to avoid the negative outcome experienced by the City with Poseidon.
Transportation Director Jose Gonzalez and Assistant Transportation Director Otniel Rodriguez
both testified that the Transportation Department did not initiate the Poseidon agreement on its
own but was directed to proceed after a recommendation from the FERC Committee and
subsequent approval by the Commission. Gonzalez explained that the department’s role was
reactive, stating, “We’re pretty much directed to do it,” referring to the bid waiver that bypassed
competitive procurement.
During an interview with the OIG, former City Manager Alina Hudak stated that the Poseidon Ferry
pilot was a Commission mandate, but that she strongly believed that “things should go out to bid.”
Her statement was consistent with the Administration’s memo to the Commission for the June 28,
2023, Commission meeting (Exhibit 4), which included the following:
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…the City Administration recommends pursuing a competitive solicitation for the
service to better position the City to seek certain external funding opportunities,
and to compare and evaluate multiple vendors' approaches to the service,
operating plans, and vessel types/technologies.
Nonetheless, in that same memorandum, the City Administration recommended that the
Mayor and Commission approve the resolution waiving the formal competitive bidding
requirement and negotiating a sole-source agreement with Poseidon.
The OIG found that throughout the process, no City staff advised FERC or the full
Commission that waiving the formal bidding process would bypass safeguards regarding
due diligence.
Bid Waiver and Due Diligence Requirements
According to Section 2-311 of the City Code, the Procurement Code is designed to,
prescribe the manner in which the city controls the purchase of materials, supplies,
equipment, and certain contractual services. Its intent is to ensure that all
procurement activities are conducted in a structured and regulated way,
maintaining a high ethical standard for all officers and employees.
The Code establishes procedures for requisitioning, bidding, awarding, and overseeing contracts,
with the goal of promoting transparency, accountability, and efficiency in the use of public funds.
By establishing detailed requirements for competitive bidding, sole-source purchases, waivers,
contractor evaluation, and oversight, Article VI aims to safeguard the city’s interests, prevent fraud
and abuse, and ensure that procurement decisions are made in the best interest of the public.
Waiver of Competitive Bidding
City Code Section 2-367 (e) Rejection of bids; negotiation; sole source purchases; waiver of
competitive bidding, states as follows:
Unless prohibited by law, the City Commission, upon written recommendation of
the City Manager, may, by resolution adopted by a five-sevenths vote of the City
Commission, waive competitive bidding requirements for goods and services when
the City Commission finds such waiver to be in the best interest of the City. In the
event of such a waiver, the city commission may authorize the execution of a
negotiated contract for such goods or services. The city commission shall not
waive the competitive bidding requirement and shall not award a contract for goods
or services without first providing the city manager with the opportunity to submit
an advisory written recommendation with respect to the proposed waiver of
competitive bidding. Notwithstanding the preceding, following receipt of the city
manager's non-binding written recommendation, the city commission may waive
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the competitive bidding requirement if it determines the waiver is in the best
interest of the City.
This section allows the Commission to waive the competitive bidding requirement with or without
the recommendation of the City Manager by a five-sevenths vote if it determines that the waiver
is in the “best interest of the City.” However, this phrase is not formally defined within the Code,
leaving its interpretation to the discretion of the City Manager and Commission. In practice, the
City Commission, in the past, has used the phrase “best interest of the City” as a justification for
waiving competitive bidding, citing the following factors:
• The urgency of the project,
• The specialized nature of the services,
• The vendor’s unique qualifications,
• The need to maintain continuity or aesthetics in public spaces.
For example, in a recent contract for sidewalk cleaning on Lincoln Road, the City waived
competitive bidding with a 5/7 vote, stating it was in the “best interest of the City” due to the
vendor’s proven experience, competitive pricing, and the urgency of the work (Exhibit 5).
Commission Resolution 2023-32644 regarding Poseidon Ferry, LLC (Exhibit 6) included a formal
waiver of competitive bidding, citing public interest under Section 2-367(e) of the City Code. This
allowed the City to engage Poseidon Ferry directly.
The OIG found that the justification for waiving the formal bidding requirement lacked evidence of
an urgent need to relaunch a water taxi/ferry service immediately. It did not demonstrate the
specialized nature of the service or Poseidon’s unique qualifications, especially considering its
past unsuccessful attempts. The $600,000 subsidy was based on figures provided by Poseidon.
The City had no way of knowing if its pricing was competitive, as this was the first time the City
had attempted to partially fund a water taxi/ferry service. In contrast, in the example of the
sidewalk cleaning contract cited above, the City received a second quote that was significantly
higher than the one awarded to the vendor.
The Poseidon resolution primarily cited Poseidon’s history, including its private venture, the
Commission Committee meetings, and the upcoming issuance of a competitive solicitation, as
reasons for waiving the formal bidding requirement. However, it ignored the fact that Poseidon
had lost at least $500,000 in its last year of operation; that its operating capital had been
significantly depleted; and that it had use of only one ferry boat without a reliable backup vessel.
Due Diligence Requirement
City Code Section 2-369 Award of Contract provides as follows:
All contracts, when the sum is equal to or less than the amount established in
section 2-366 of this article for formal bids, shall be awarded by the city manager,
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or his designee, to the lowest and best bidder. When the amount of a contract is
in excess of the amount established by this article for formal bids, the city
commission shall award the contract to the lowest and best bidder, or may delegate
to the city manager the power to award such contract to the lowest and best bidder;
however, the purchase of goods and services on a continuing basis from Miami-
Dade County; from the School Board of Miami-Dade County; from the U.S.
Communities Government Purchasing Alliance; from state or federal general
services administration bid lists; or awards from cooperative alliances or public
entities that have utilized a public procurement process may be approved by the
city manager without any action by the city commission, even though the total cost
of such goods and services may exceed the amount established in this article for
formal bids; provided that prior to approval of such purchases, the city manager
shall prepare, or cause to be prepared, a written analysis, in such form and manner
as shall be determined by the city manager, which shall include a justification as
to why it is in the city's best interest to purchase the goods and services on a
continuing basis from the entities set forth in this section 2-369. In determining the
lowest and best bidder, in addition to price, there shall be considered the following:
(1) The ability, capacity, and skill of the bidder to perform the contract.
(2) Whether the bidder can perform the contract within the time specified, without
delay or interference.
(3) The character, integrity, reputation, judgment, experience, and efficiency of the
bidder.
(4) The quality of performance of previous contracts.
(5) The previous and existing compliance by the bidder with laws and ordinances
relating to the contract.
Under this section, contracts are generally awarded to the "lowest and best bidder," with
the City Manager authorized to award contracts at or below the formal bid threshold. The
City Commission handles contracts exceeding that threshold unless it delegates that
authority. The code specifies certain criteria for determining the "lowest and best bidder”
as outlined in numbers one through five above; however, when the City Commission
waives the formal bidding requirement, it exercises its discretion to bypass the competitive
selection process entirely. In such cases, the procedural and evaluative requirements of
Section 2-369, including the bidder criteria, might not apply unless the Commission or the
City Manager chooses to apply them voluntarily. The ordinance does not explicitly state
that these standards remain binding if a waiver is granted, suggesting that their application
in such scenarios is discretionary rather than mandatory.
The current Chief Procurement Officer, in response to an OIG email, stated,
I researched the information requested but was unable to locate any policies,
procedures, memoranda, or other correspondence detailing requirements for
vetting entities awarded a contract or agreement through a bid waiver, pursuant to
City Code 2-369.
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The Assistant Transportation Director stated in an email response to the OIG,
as part of a standard competitive solicitation process, the Procurement Department
confirms, during its due diligence and prior to the City Manager’s recommendation
for award, that the bidder has the integrity, reliability, capacity, capability, and meets
the solicitations requirements in all respects to fully perform the required services
in accordance with Florida law and, without limitation, the criteria set forth in
section 2-369.
The OIG found that the Commission waived the formal bidding requirement and instructed the
City Manager and staff to proceed with the direct award to Poseidon based on the FERC's
recommendation. The City Manager and City staff did not conduct an inquiry into the “integrity,
reliability, capacity, capability” of Poseidon to perform the contract, as would have been required
for a competitive solicitation per Section 2-369 cited above. The Commission was thereby left
uninformed of the consequences of bypassing the formal bidding process. In the months that
followed, significant issues regarding due diligence, procurement oversight, and administrative
controls, along with actions taken by Poseidon and the City, ultimately led to the failure of the pilot
program.
Poseidon Ferry, LLC’s Financial Condition
During the May 24, 2023, FERC meeting, as noted above, Poseidon had suffered a $500,000
loss in its last year of operation, and the company’s operating capital was seriously depleted. On
June 6, 2024, Johnathan Silvia submitted a detailed financial forecast spreadsheet to the
Transportation Department (Exhibit 7). The forecast identified existing liabilities exceeding $1
million. It also included an analysis estimating a monthly sales requirement of $103,128.00 to
break even, which was defined as “the number of units that must be sold in order to break even.
This means revenues are equal to expenses. Any units sold beyond this quantity will allow
the company to generate net income.” (Emphasis added.) Johnathan Silvia clearly knew, and
the City should have known, that before launching the ferry on June 30, 2024, the operational
success of the Poseidon Ferry was highly questionable.
During his interview, Johnathan Silvia stated to the OIG that his proposal was based on
Poseidon’s previous operations and that he originally proposed a one-million-dollar subsidy to
cover fifty percent of his operation. At the suggestion of his attorney, Rafael Andrade, he reduced
his proposal to make it more acceptable to the City. His revenue projections were based on ticket
and concession sales, which consisted of beer, wine, sodas, water, and various snacks.
Johnathan Silvia told the OIG that Poseidon faced ongoing financial problems, describing the
operation as “not profitable” from its initial private run and saying, “at the end of the day, I’m out
of business.” He explained that the pilot program with the City was hampered by frequent changes
made by the City to the financial model and operational requirements, noting, “every meeting that
we had, our financial model was changed,” and that restrictions such as not being allowed to sell
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beer and wine on board further lowered expected revenues. Silvia stressed that these constant
changes and restrictions made it difficult to keep the service financially sustainable, and that as a
result, “We were heavily relying on the subsidy…we were not allowed to sell anything other than
soda on the boat. And the first month, the service was free.”
Silvia estimated the company’s total losses before the 2024 launch as “in excess of at least two
million [dollars],” and recounted that he and his family had to “liquidate all of my assets in order
to keep the boat running.” He stated further that, “the revenue from this contract was…less than
1/3 of what it took to get that service going,” and he confirmed that employees and some vendors
were unpaid for the final weeks: “They have not been [paid] yet and they’re going to be listed as
debtors in our bankruptcy.” Operational setbacks, including severe mechanical problems with the
vessel and a lack of marketing support, added to the financial burden. Reflecting on the
experience, Silvia concluded, “If I could go back and change something from the past…we should
have scrapped it.”
The OIG found that the City only became fully aware of the depth of Poseidon’s financial difficulties
after the service had begun, and complaints had been received from subcontractors regarding
non-payment.
Subsidy Payments made to Poseidon Ferry
The City of Miami Beach made three subsidy payments totaling $65,729.29 to Poseidon before
its agreement was terminated by the City. Each subsidy payment was deposited into a separate
account, followed by significant activity in those accounts. The first subsidy payment, in the
amount of $1,652.89, was deposited into Sunrise Holdings LLC, d/b/a. Sunrise Grill & Pizza
Restaurant business checking account at Bank of America on July 28, 2024. After this deposit,
the account showed numerous small deposits and adjustments related to Poseidon, as well as a
large insurance payment withdrawal of $6,346.67. In August, six payroll payments totaling
$9,579.41 were attempted but returned due to insufficient funds. The account was ultimately
closed on September 16, 2024, after accumulating over $203,000 in returned checks and
overdraft fees.
The second subsidy payment, in the amount of $40,249.27, was deposited into the Poseidon
account at Incredible Bank on August 12, 2024. Following this deposit, the account showed a
series of payments to individuals, including Johnathan Silvia and what appeared to be Poseidon
employees, with amounts ranging from $1,360 to $8,333.33. Additional transactions related to
payroll and Zelle payments were made, including payments to Water Taxi Miami. The account
continued to show regular activity through October 2024.
The third and final subsidy payment, in the amount of $23,827.13, was deposited into the
Poseidon account at Truist Bank on September 10, 2024. The account was opened on September
9, 2024, and after this deposit the account was used for Zelle payments to Sunrise Holdings,
Johnathan Silvia, Wynter Fromhartz, and what appeared to be other Poseidon employees, as well
as an outgoing wire transfer to Wynter Fromhartz for $6,223.78 and an ACH corporate debit
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purchase for $6,557.20. By September 30, 2024, the account balance had dropped to $1.21, with
minimal activity afterward.
The overall activity pattern, including the immediate withdrawal of subsidy funds, frequent
returned payments, and account closures, highlights ongoing financial instability and poor cash
management associated with Poseidon and related entities. The repeated failure to cover payroll
and the recurring overdrafts show that the subsidy payments were insufficient to address deeper
financial stress.
Johnathan Silvia Files Bankruptcy
Johnathan Silvia filed for Chapter 7 bankruptcy on January 28, 2025. At the time of filing, Silvia
reported total assets of only $1,615.56, while liabilities exceeded $1.73 million. His petition listed
a 90% stake in Poseidon and a 20% interest in Sunrise Holdings, LLC. Both entities were either
dissolved or mostly inactive at the time of filing.
The bankruptcy filing lists a total of 43 creditors, reflecting a complex web of personal and
business-related financial obligations. Among the secured creditors are Incredible Bank, which
held a $790,000 lien on a 2012 Scarano passenger ferry, and Phillips Edison, associated with a
commercial restaurant lease. The City of Miami is also listed as a secured creditor due to unpaid
dock lease obligations. Silvia’s priority unsecured debt included a substantial $108,000 tax liability
to the IRS. The remaining nonpriority unsecured claims, totaling over $737,000, involved a wide
range of creditors such as Diesel Direct Florida LLC ($49,383.06), Water Taxi Miami
Inc. ($18,000), Rapid Finance ($55,000), and the Small Business Administration, which was
owed $300,000. These debts were largely tied to Poseidon operations. The breadth and nature
of these creditor relationships suggest serious financial trouble. The bankruptcy filing indicated
that there were no funds available for distribution to creditors.
Johnathan Silvia explained to the OIG that the financial collapse of Poseidon led to his personal
bankruptcy. He stated, “The boat was repossessed by the bank and is being liquidated. I sold my
house and liquidated all my assets to keep the boat operational." Although Silvia’s personal
bankruptcy was finalized by the time of his interview, he informed the OIG that Poseidon’s
bankruptcy hadn’t been filed yet because the boat needed to be liquidated first. Silvia also
discussed employee payments, stating, “They have not been paid yet and will be listed as debtors
in our bankruptcy,” indicating that some employees remained unpaid while the financial situation
worsened.
Epic Boat Tours, LLC, Party Boat Operations, and the Condition of Poseidon’s Vessel
The viability of the Poseidon pilot program was undermined from the start by the vessel's condition
and history, along with concerns for public safety and service reliability. Prior to the pilot contract
and during the COVID-19 pandemic and the subsequent post-pandemic operations in 2022,
Poseidon operated as a commuter service for twelve hours daily, then shifted to nighttime party
cruises. Before leaving town in January 2023, Johnathan Silvia signed an agreement with Epic
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Boat Tours, LLC, granting the company use of the vessel in exchange for taking on financial
responsibilities and eventually gaining 60% ownership. Epic defaulted on payments to Poseidon
and ceased all payments by March 2024.
According to Wynter Fromhartz, a former Poseidon captain, the party boat operations prioritized
entertainment over transportation, which led to significant wear and tear on the vessel.
Maintenance was neglected due to a lack of funds, especially after the party boat promoters took
control. As Wynter Fromhartz explained, “the boat wasn’t really maintained the way it should
have.” During the 2024 ferry relaunch, Jonathan Silvia, who was living in the Daytona area, was
not involved in daily operations. Wynter Fromhartz managed the ferry locally, reporting issues to
Silvia through frequent phone calls. Wynter said that “the boat was in rough shape” and needed
maintenance, but Silvia’s response was, “there’s just no money to fix it,” telling her to “just…make
it work.”
Johnathan Silvia informed the OIG that, after leaving town and handing the vessel over to Epic,
he was not immediately aware of the boat’s condition. He said, “I was not aware of it until I went
on the boat that first day,” referring to the launch of the ferry service on June 30, 2024. Silvia said
that upon his return, he was “mortified” by what he found, stating, “That boat, when I left, was
pristine…It was a pretty boat, and it just…it was beat on, you know.”
He further detailed specific issues:
When the boat got up to the Daytona area and another survey was done by the
bank, the vessel right now is only valued at about 600,000…They didn’t change
the oil at all…the whole time they had the boat. There was about three to four
inches of growth on the bottom. There was a literal clam colony growing in the bow
thruster.
By contrast, in the City’s recently completed RFQ process for a Water Taxi service, the open bid
process required due diligence, resulting in the selection of the very experienced Water Taxi of
Fort Lauderdale, LLC being chosen as the top-ranked proposer. The City Administration
recommended that the Commission approve a resolution authorizing the agreement and enabling
the City to execute the final contract with Water Taxi of Fort Lauderdale. As part of Water Taxi of
Fort Lauderdale’s proposal, a sample Diver Inspection Report was included as part of their RFQ
submittal, detailing the condition of several of their vessels, along with video documentation
(Exhibit 8).
The current draft agreement for Water Taxi Fort Lauderdale requires that the service be performed
using two vessels, whereas Poseidon used only one. Both agreements specify that vessels must
be U.S. Coast Guard certified and require a backup vessel to ensure continuous operations.
Poseidon did not have a contingency plan in place in case its single vessel became inoperable,
which occurred more than once during its brief service with the City. Poseidon ended up leasing
a vessel from another water taxi company that did not meet the City’s requirements. The OIG
notes that neither the Poseidon agreement nor the draft Water Taxi of Fort Lauderdale agreement
requires an inspection of the vessel(s) before the service is launched in the City.
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Within ten days of Poseidon’s launching its cross-bay service on June 30, 2024, it faced its first
disruption, resulting in a five-day period without service. On August 7, 2024, it experienced three
additional days of no service, and by August 20, 2024, it had suspended operations indefinitely.
Just 21 days after launching its service, Poseidon was unable to fulfill its obligation to provide the
agreed-upon services due to mechanical failures and financial difficulties. On September 16,
2024, following action by the Commission, the City Attorney sent a termination letter to Poseidon
owner Jonathan Silvia ending the Concession Agreement pursuant to Section 13.4 (Failure to
Operate) of the Agreement (Exhibit 9).
The OIG found that the City entered into a $600,000 agreement with Poseidon without conducting
any formal due diligence on the company’s financial stability, operational capacity, or service
history.
• No background checks were conducted on Jonathan Silvia, Poseidon’s owner.
• No review was performed of Poseidon’s prior failed private ventures from 2020-2022.
• No verification of Poseidon’s vessel ownership, maintenance history, or staffing capacity
was conducted.
During his OIG interview, Transportation Director Jose Gonzalez stated,
Under a bid waiver, I don't believe there is [due diligence].” He added, “when there
is a bid waiver, my understanding…is that analysis, that due diligence, as they call
it, is not done. It's not conducted.
When asked if he had known the full scope of Poseidon’s operational and financial problems,
would he have advised continuing, he answered, “Absolutely not.”(Emphasis added.)
Waiver of Competitive Bidding Agenda Placement
In an email response to the OIG, City Clerk Rafael Granado explained the procedures and criteria
for placing items on the City of Miami Beach Commission’s Consent and Regular Agendas. He
advised that routine and non-controversial matters are typically placed on the Consent Agenda,
allowing for efficient approval without separate discussion; however, any commissioner may
request that an item be moved to the Regular Agenda for further debate. Certain items, such as
those involving public hearings, unbudgeted expenditures not reviewed by the Finance and
Economic Resiliency Committee, or fiscal impacts exceeding $75,000 sponsored by the mayor
or a commissioner, must be placed on the Regular Agenda unless a five-sevenths commission
vote waives specific code requirements.
Granado further advised that, while the code does not explicitly specify whether bid waiver items
should be placed on the Consent or Regular Agenda, the common practice is to schedule these
substantive matters on the Regular Agenda to ensure transparency and thorough review by the
Commission. Overall, agenda placement is governed by both the City Code and Commission
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practice, with an emphasis on open discussion for items with significant fiscal or policy
implications.
City Attorney Ricardo Dopico explained that, following a recent amendment to Section 2-14(d),
any agenda item introduced by the Mayor or a Commissioner with a fiscal impact exceeding
$75,000 must be reviewed by the Finance and Economic Resiliency Committee, unless the City
Commission waives this requirement by a 5/7 vote. Typically, items returning from a committee
are placed on the Consent Agenda by the City Manager, unless the Administration’s
recommendation differs from the committee’s, in which case they may be added to the regular
agenda. City Attorney Dopico stated,
Commissioners generally prefer to have Resolutions placed on the consent
agenda because not all items on the regular agenda are reached, as you likely
know. Even when an item is pulled from the consent agenda, the Mayor will
typically call those items, so it is the safer route to take to ensure an item is
reached.
The OIG found that, but for a single Commissioner’s pulling the Poseidon item, an
authorization to negotiate a no-bid contract with up to a $600,000 subsidy would have
been approved without discussion. As the City Clerk stated in his email,
The Code does not specify whether items involving the waiver of competitive
bidding or sole-source agreements should be placed on the Consent Agenda or
the Regular Agenda. My recollection is that such procurement items are placed on
the Regular Agenda given their substantive nature.
Although the item passed, having received the recommendation of the FERC and the City
Administration, the full Commission was never aware of Poseidon’s precarious financial condition,
of which the City had sufficient prior notice to at least cause concern prior to the Commission’s
approval of the pilot program.
The OIG concurs that waiving the competitive bidding requirement and foregoing the safeguards
that accompany the process, as well as considering sole-source agreements, are certainly
substantive in nature and should always be discussed by the full Commission. It is essential to
ensure that for all City contracts, proper justification and due diligence be required so that the full
consequences of bypassing the formal process are fully understood.
FINDINGS AND RECOMMENDATIONS
The OIG has concluded its investigation into the Poseidon Ferry pilot program, which revealed a
series of procedural, financial, and governance shortcomings. The Commission's decision to
waive the competitive bidding process, driven by the desire to launch a cross-bay ferry service
quickly, excluded key oversight mechanisms, including the Procurement Department’s standard
vendor evaluations. City staff did not perform feasibility studies, thorough background checks, or
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properly evaluate the financial health and operational capacity of Poseidon despite clear warning
signs from previous failed ventures and reports of depleted capital and significant financial losses
in its final year of operation. No one adequately informed the Commission of the possible
consequences of bypassing the competitive bid process.
The lack of transparency and oversight during the process led to approval of a significant public
subsidy without adequate justification or safeguards, ultimately resulting in the program’s rapid
suspension and termination. The financial collapse of Poseidon and the subsequent bankruptcy
of its owner further underscore the consequences of insufficient oversight and deviation from best
practices. The Poseidon water taxi pilot program, despite its intentions, was ultimately a flawed
effort due to political expediency, the bypassing of administrative processes, and a systemic
failure of oversight.
This report emphasizes the importance of enhancing the City’s procurement and oversight
practices, with a focus on transparency, accountability, and thorough due diligence, for public trust
and to ensure that future public-private partnerships serve the community effectively.
Finding: The City Commission waived the formal competitive bidding process for the Poseidon
contract, thereby bypassing standard procurement safeguards and excluding the Procurement
Department from conducting vendor evaluation.
Recommendation: The City should require that all contracts, especially those involving
significant public funds, go through the formal competitive bidding process with mandatory
involvement from the Procurement Department to ensure transparency and proper vendor vetting,
unless the required justifications for a bid waiver are strictly adhered to.
Finding: City staff did not perform any formal due diligence prior to executing the agreement with
Poseidon, despite the company’s history of failed ventures and inadequate financial resources.
Recommendation: Update the City Code to require thorough due diligence, including
background checks, financial reviews, and operational evaluations, for awarding any contract or
agreement, regardless of how it is procured.
Recommendation: Require vendors to disclose any pending or recent bankruptcy filings and
unresolved debts as part of the procurement process, and prohibit contract awards to entities or
individuals with significant financial red flags.
Recommendation: Require independent financial and operational assessments for any vendor
seeking public funds and ensure that all projections and business models are critically evaluated
by City staff or third-party experts.
Finding: Throughout the Poseidon process, City staff followed the Commission's directives
without independently informing elected officials of the serious risks involved in bypassing
competitive bidding and due diligence requirements.
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Recommendation: Establish and enforce protocols for City staff to provide independent risk
assessments and written advisories to elected officials and to the OIG whenever procurement
safeguards are proposed to be waived.
Finding: The lack of transparency and adequate oversight in the decision-making process
exposed the City to financial loss, public criticism, and reputational damage.
Recommendation: Enhance governance by requiring all waivers of the formal bidding process
to be included on the regular agenda for discussion by the full Commission, with complete
documentation of risks, alternatives, and justifications.
This report is presented by the OIG to the City Administration for its review and action as deemed
appropriate concerning the findings and recommendations herein.
Section 2-256 (d) (3) of the City Code confers upon the Office of the Inspector General the power
to require reports from the city manager, city departments, city agencies, boards, and committees,
and city officers and employees, regarding any matter within the jurisdiction of the inspector
general. The OIG requests that the City Administration provide a status report to the OIG
within sixty (60) days of its receipt of this report on the implementation of any of the OIG
recommendations.
As required by Miami Beach Code Section 2-256(d)(8), the final report will be provided to the
Small Business Administration Office of Inspector General and the State Attorney’s Office for
their review and action as they deem appropriate.
Respectfully submitted,
_________________________________ __________________
Joseph M. Centorino, Inspector General Date
_________________________________ _________________
Dylan Hughes, Investigator Date
cc: Eric Carpenter, City Manager
Kristi Bada, Procurement Director
Jose Gonzalez, Transportation Director
Ricardo Dopico, City Attorney
Rafael Granado, City Clerk
Johnathan Silvia, Former Owner, Poseidon Ferry, LLC
Alina Hudak, Former City Manager
Steven Meiner, Mayor
David Richardson, Former City Commissioner
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach 1130 Washington Avenue, 6th Floor, Miami Beach, FL 33139 Tel: 305.673.7020 • Fax: 305.675.0420 • Hotline: 786.897.1111
Email: CityofMiamiBeachOIG@miamibeachfl.gov Website: www.mbinspectorgeneral.com
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
12/29/2025 | 12:48 PM EST
12/29/2025 | 2:24 PM EST
OIG
EXHIBIT 1
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Water Taxi/Ferry Operations and Poseidon Ferry, LLC Timeline of Events
Date Event
Pre-2012 Water taxi services are recommended in the City’s Blueways and
Transportation Master Plans.
2014 City issues ITN #2014-326-J for a water taxi concession. Only one proposal
was received from Water Taxi Miami.
Dec
2016 -
Dec
2017
Water Taxi Miami operates a one-year pilot. No public subsidy. High fares
and low ridership lead to termination.
Nov 29,
2020
Poseidon Ferry launches a private, unsubsidized ferry service. Ceases
operations after six weeks due to low ridership, the COVID-19 pandemic,
and a permitting issue.
Aug
2021-
Dec 31,
2022
After a relaunch on August 31, 2021, Poseidon Ferry ceased operation due
to low ridership and financial issues. Poseidon Ferry owner, Johathan
Silvia, leaves South Florida for Palm Coast.
Jan
2023-
Mar 2024
Poseidon Ferry, LLC executes an agreement with Epic Boat Tours, LLC,
granting them use of the vessel in exchange for assuming financial
responsibility for the loan payments and an eventual 60% ownership in
Poseidon Ferry, LLC.
Feb 28,
2023
Poseidon Ferry, LLC representative Rafael Andrade emails a financial
proposal to Commissioner Richardson, projecting a subsidy requirement
of $1,082,765.
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Water Taxi/Ferry Operations and Poseidon Ferry, LLC Timeline of Events
Date Event
Mar 27,
2023
At the Commission Meeting, Commissioner Richardson referred a water
taxi/ferry subsidy item to the Finance and Economic Resiliency
Committee (FERC).
May 24,
2023
After being informed that Poseidon Ferry lost at least $500,000 in its
previous year of operation, and has depleted its capital. FERC proposes to
submit the item to the Commission, recommending that it waive the
formal bidding process and negotiate a one-year agreement with Poseidon
Ferry, LLC, which includes a $600,000 subsidy.
June 23,
2023
At the FERC Meeting, Commissioner Richardson emphasizes the urgency
of starting the pilot program by October and verifies with the CFO that
there is a budget item for a $600,000 subsidy. Richardson directs the
administration, transportation, and grants teams to meet with the Miami-
Dade Transportation Planning Organization to discuss grant opportunities.
June 28,
2023
City Commission approves Resolution No. 2023-32644 with a 6/7th
majority and one dissenting vote, waiving competitive bidding and
authorizing the City Manager to negotiate the agreement with Poseidon
Ferry, LLC for a cross-bay water taxi/ferry service.
July 21,
2023
At the FERC Budget Workshop, the presentation included a one-time
budget enhancement of $600,000 for Commuter Waterborne
Transportation Services.
Sept 13,
2023
City Commission approves the final term sheet for Poseidon Ferry, LLC,
cross-bay water taxi/ferry services, authorizing the Administration to
negotiate and finalize an agreement subject to budget appropriation.
Nov 28,
2023
Commissioner Richardson serves out his term as a Miami Beach
Commissioner.
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Water Taxi/Ferry Operations and Poseidon Ferry, LLC Timeline of Events
Date Event
Sep
2023-
Mar 2024
Preparation of the agreement between the City of Miami Beach and
Poseidon Ferry, LLC, including the fulfillment of permitting and licensing
requirements.
Mar 14,
2024
Execution of the agreement between the City of Miami Beach and
Poseidon Ferry, LLC, for the Turnkey Implementation, Management,
Operation (including dock operations), and Maintenance of a Waterborne
Transportation Services Pilot Program
June 30,
2024
Poseidon Ferry, LLC begins its cross-bay ferry service between Maurice
Gibb Memorial Park (Purdy Avenue) and Sea Isle Marina at the Venetian
Causeway.
July 10,
2024
The first mechanical breakdown occurs.
Aug 7–9,
2024
Second, mechanical failure. Poseidon leases a backup vessel from Water
Taxi Miami.
Aug 20,
2024
Poseidon suspends service indefinitely due to mechanical and financial
issues.
Sept 11,
2024
City Commission votes to terminate the agreement due to material
default.
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
From:Rafael E. Andrade
To:David Richardson
Subject:Fwd: City of Miami Beach Subsidy - Ferry Service
Date:Tuesday, February 28, 2023 10:22:31 AM
Attachments:image001.jpg
attachment.html
MB Financial Proposal.pdf
attachment.html
[ THIS MESSAGE COMES FROM AN EXTERNAL EMAIL - USE CAUTION WHENREPLYING AND OPENING LINKS OR ATTACHMENTS ]
FYI
Rafael E. AndradeMBeach Consulting & Solutions, Inc.
1688 Meridian Avenue7th Floor
Miami Beach, Fl 33139
Sent from my iPhone; please excuse any typos
Begin forwarded message:
From: Johnathan Silvia <jsilvia@poseidonferry.com>Date: February 28, 2023 at 10:09:21 AM ESTTo: ralph@mbeachconsulting.comSubject: RE: City of Miami Beach Subsidy
Hi Ralph,
Please see attached for the financial projections. Assuming we carried the same
number of passengers this past year, and we could dock at purdee avenue dock the
subsidy needed to run the full schedule would be $2,966.48 per day which equates to
$247.20 per departure based on 6 round trips or 12 departures per day.
With that said, there are grants available to public agencies for ferry service. We are
not eligible to apply for them because we are a private company. But the city could
apply and would be approved for it so there would be no out of budget expense for the
operation.
Best,
John
Johnathan Silvia
Poseidon Ferry LLC
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
o - 833-443-3779 ext. 703
c - 305-790-5517
www.poseidonferry.com
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Payroll Year 1Prepared By:Company Name:Johnathan Silvia Poseidon Ferry LLCEmployee TypesNumber of Owners /EmployeesAverage Hourly Pay (to 2 decimal places, ex. $15.23)Estimated Hrs./Week (per person)Estimated Pay/Month (Total) March April May June July August September October November December January February Annual TotalsManagement-$ 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 168,000$ Captains-$ 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000$ Crew-$ 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000$ Ticket Agents-$ 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200$ Total Salaries and Wages 0-$ 0 -$ 41,600$ 41,600$ 41,600$ 41,600$ 41,600$ 41,600$ 41,600$ 41,600$ 41,600$ 41,600$ 41,600$ 41,600$ 499,200$ Payroll Taxes and Benefits Wage Base LimitPercentage of Salary/WageEstimated Taxes & Benefits/Month (Total) March April May June July August September October November December January February Annual TotalsSocial Security 137,700$ 6.20% -$ 2,356 2,356 2,356 2,356 2,356 2,356 2,356 2,356 2,356 2,356 2,356 2,356 28,272$ Medicare -- 1.45% -$ 551 551 551 551 551 551 551 551 551 551 551 551 6,612$ Federal Unemployment Tax (FUTA) 7,000$ 0.60% -$ - - - - - - - - - - - - -$ State Unemployment Tax (SUTA) 7,000$ 3.45% -$ - - - - - - - - - - - - -$ Employee Pension Programs -- 0.00% -$ - - - - - - - - - - - - -$ Worker's Compensation -- 0.00% -$ - - - - - - - - - - - - -$ Employee Health Insurance -- 0.00% -$ - - - - - - - - - - - - -$ Other Employee Benefit Programs -- 0.00% -$ - - - - - - - - - - - - -$ Total Payroll Taxes and Benefits11.70% -$ 2,907$ 2,907$ 2,907$ 2,907$ 2,907$ 2,907$ 2,907$ 2,907$ 2,907$ 2,907$ 2,907$ 2,907$ 34,884$ Total Salaries and Related Expenses-$ 44,507$ 44,507$ 44,507$ 44,507$ 44,507$ 44,507$ 44,507$ 44,507$ 44,507$ 44,507$ 44,507$ 44,507$ 534,084$ Score Projections Spreadsheet 2a-PayrollYear1 2/28/2023 10:00 AMDocusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Payroll Years 1-3Prepared By:Johnathan SilviaEmployee Types Year 1 Totals Growth Rate 1 to 2 Second Year Growth Rate 2 to 3 Third YearOwner(s) 168,000 20.0% 201,600 30.0% 262,080 Full-Time Employees 144,000 20.0% 172,800 30.0% 224,640 Part-Time Employees 144,000 10.0% 158,400 30.0% 205,920 Independent Contractors 43,200 3.0% 44,496 3.0% 45,831 Total Salaries and Wages499,200$ 577,296$ 738,471$ Payroll Taxes and BenefitsSocial Security 28,272 20.0% 33,926 30.0% 44,104 Medicare 6,612 20.0% 7,934 30.0% 10,315 Federal Unemployment Tax (FUTA) - 20.0% - 30.0% - State Unemployment Tax (SUTA) - 20.0% - 30.0% - Employee Pension Programs - 0.0% - 0.0% - Worker's Compensation - 3.0% - 3.0% - Employee Health Insurance - 3.0% - 3.0% - Other Employee Benefit Programs - 10.0% - 10.0% - Total Payroll Taxes and Benefits34,884$ 41,861$ 54,419$ Total Salaries and Related Expenses 534,084$ 619,157$ 792,890$ Company Name:Poseidon Ferry LLCScore Projections Spreadsheet 2b-PayrollYrs1-3 2/28/2023 10:00 AMDocusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Sales Forecst Year 1Prepared By: Company Name:Johnathan SilviaProduct Lines UnitsSales Price Per UnitCOGS Per UnitMargin Per UnitTicket Sales 1 5.00$ -$ 5.00$ Concession Sales 1 3.00$ 2.00$ 1.00$ City of Miami Beach Subsidy 1 90,230.34$ 90,230.34$ -$ -$ -$ Product Lines March April May June July August September October November December January February Annual TotalsCategory Breakdown Category / TotalTicket Sales1 Sold 1,200 1,747 2,101 1,500 1,824 1,049 1,550 1,486 1,076 2,643 1,034 1,63018,840 50.0%Total Sales 6,000 8,735 10,505 7,500 9,120 5,245 7,750 7,430 5,380 13,215 5,170 8,150 94,200$ 100.0%7.6%Total COGS - - - - - - - - - - - - -$ 0.0%0.0%Total Margin 6,000 8,735 10,505 7,500 9,120 5,245 7,750 7,430 5,380 13,215 5,170 8,150 94,200$ 100.0%7.9%Concession Sales1 Sold 1,200 1,747 2,101 1,500 1,824 1,049 1,550 1,486 1,076 2,643 1,034 1,63018,840 50.0%Total Sales 3,600 5,241 6,303 4,500 5,472 3,147 4,650 4,458 3,228 7,929 3,102 4,890 56,520$ 100.0%4.6%Total COGS 2,400 3,494 4,202 3,000 3,648 2,098 3,100 2,972 2,152 5,286 2,068 3,260 37,680$ 66.7%100.0%Margin 1,200 1,747 2,101 1,500 1,824 1,049 1,550 1,486 1,076 2,643 1,034 1,630 18,840$ 33.3%1.6%City of Miami Beach Subsidy1 Sold 1 1 1 11111 11 1 112 0.0%Total Sales 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 1,082,764$ 100.0%87.8%Total COGS - - - - - - - - - - - - -$ 0.0%0.0%Margin 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 90,230 1,082,764$ 100.0%90.5%Product 4Units Sold00.0%Total Sales - - - - - - - - - - - - -$ 0.0%0.0%Total COGS - - - - - - - - - - - - -$ 0.0%0.0%Margin - - - - - - - - - - - - -$ 0.0%0.0%Product 5Units Sold00.0%Total Sales - - - - - - - - - - - - -$ 0.0%0.0%Total COGS - - - - - - - - - - - - -$ 0.0%0.0%Margin - - - - - - - - - - - - -$ 0.0%0.0%Product 6Units Sold00.0%Total Sales - - - - - - - - - - - - -$ 0.0%0.0%Total COGS - - - - - - - - - - - - -$ 0.0%0.0%Margin - - - - - - - - - - - - -$ 0.0%0.0%Total Units Sold 2,401 3,495 4,203 3,001 3,649 2,099 3,101 2,973 2,153 5,287 2,069 3,261 37,692Total Sales 99,830$ 104,206$ 107,038$ 102,230$ 104,822$ 98,622$ 102,630$ 102,118$ 98,838$ 111,374$ 98,502$ 103,270$ 1,233,484$ Total Cost of Goods Sold 2,400$ 3,494$ 4,202$ 3,000$ 3,648$ 2,098$ 3,100$ 2,972$ 2,152$ 5,286$ 2,068$ 3,260$ 37,680$ Total Margin 97,430$ 100,712$ 102,836$ 99,230$ 101,174$ 96,524$ 99,530$ 99,146$ 96,686$ 106,088$ 96,434$ 100,010$ 1,195,804$ Complete This Chart First:Poseidon Ferry LLCScore Projections Spreadsheet 3a-SalesForecastYear1 2/28/2023 10:00 AMDocusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Sales Forecast Years 1-3Prepared by: Company Name:Johnathan SilviaGrowth Rate Year 1 to Year 2:10.00%Growth Rate Year 2 to Year 3:10.00%Product Lines Year 1 Totals March April May June July August September October November December January February Year 2 TotalsCategory BreakdownCategory / TotalTicket Sales1 Sold 18840 1,320 1,922 2,311 1,650 2,006 1,154 1,705 1,635 1,184 2,907 1,137 1,79320,724 50.0%Total Sales 94,200$ 6,600 9,609 11,556 8,250 10,032 5,770 8,525 8,173 5,918 14,537 5,687 8,965 103,620$ 100.0%7.6%Total COGS -$ - - - - - - - - - - - - -$ 0.0%0.0%Total Margin 94,200$ 6,600 9,609 11,556 8,250 10,032 5,770 8,525 8,173 5,918 14,537 5,687 8,965 103,620$ 100.0%7.9%Concession Sales1 Sold 18840 1,320 1,922 2,311 1,650 2,006 1,154 1,705 1,635 1,184 2,907 1,137 1,79320,724 50.0%Total Sales 56,520$ 3,960 5,765 6,933 4,950 6,019 3,462 5,115 4,904 3,551 8,722 3,412 5,379 62,172$ 100.0%4.6%Total COGS 37,680$ 2,640 3,843 4,622 3,300 4,013 2,308 3,410 3,269 2,367 5,815 2,275 3,586 41,448$ 66.7%100.0%Margin 18,840$ 1,320 1,922 2,311 1,650 2,006 1,154 1,705 1,635 1,184 2,907 1,137 1,793 20,724$ 33.3%1.6%City of Miami Beach Subsidy1 Sold 121 111 1111 11 1 113 0.0%Total Sales 1,082,764$ 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 1,191,040$ 100.0%87.8%Total COGS -$ - - - - - - - - - - - - -$ 0.0%0.0%Margin 1,082,764$ 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 99,253 1,191,040$ 100.0%90.5%Product 4 Sold 00 0000000 00 0 000.0%Total Sales 0 - - - - - - - - - - - - -$ 0.0%0.0%Total COGS -$ - - - - - - - - - - - - -$ 0.0%0.0%Margin -$ - - - - - - - - - - - - -$ 0.0%0.0%Product 5 Sold 00 0000000 00 0 000.0%Total Sales -$ - - - - - - - - - - - - -$ 0.0%0.0%Total COGS -$ - - - - - - - - - - - - -$ 0.0%0.0%Margin -$ - - - - - - - - - - - - -$ 0.0%0.0%Product 6 Sold 00 0000000 00 0 000.0%Total Sales -$ - - - - - - - - - - - - -$ 0.0%0.0%Total COGS -$ - - - - - - - - - - - - -$ 0.0%0.0%Margin -$ - - - - - - - - - - - - -$ 0.0%0.0%Total Units Sold 37692 2,641 3,845 4,623 3,301 4,014 2,309 3,411 3,270 2,368 5,816 2,276 3,587 41,461Total Sales 1,233,484$ 109,813$ 114,627$ 117,742$ 112,453$ 115,305$ 108,485$ 112,893$ 112,330$ 108,722$ 122,512$ 108,353$ 113,597$ 1,356,832$ Total Cost of Goods Sold 37,680$ 2,640$ 3,843$ 4,622$ 3,300$ 4,013$ 2,308$ 3,410$ 3,269$ 2,367$ 5,815$ 2,275$ 3,586$ 41,448$ Total Margin 1,195,804$ 107,173$ 110,784$ 113,120$ 109,153$ 111,292$ 106,177$ 109,483$ 109,061$ 106,355$ 116,697$ 106,078$ 110,011$ 1,315,384$ Poseidon Ferry LLCScore Projections Spreadsheet 3b-SalesForecastYrs1-3 2/28/2023 10:00 AMDocusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Sales Forecast Years 1-3Product LinesTicket Sales1 SoldTotal SalesTotal COGSTotal MarginConcession Sales1 SoldTotal SalesTotal COGSMarginCity of Miami Beach Subsidy1 SoldTotal SalesTotal COGSMarginProduct 4 SoldTotal SalesTotal COGSMarginProduct 5 SoldTotal SalesTotal COGSMarginProduct 6 SoldTotal SalesTotal COGSMarginTotal Units SoldTotal SalesTotal Cost of Goods SoldTotal MarginMarch April May June July AugustSeptember October November December January FebruaryYear 3 TotalsCategory BreakdownCategory / Total1,452 2,114 2,542 1,815 2,207 1,269 1,876 1,798 1,302 3,198 1,251 1,972 22,796 50.0%7,260 10,569 12,711 9,075 11,035 6,346 9,378 8,990 6,510 15,990 6,256 9,862 113,982$ 100.0%7.6%- - - - - - - - - - - - -$ 0.0%0.0%7,260 10,569 12,711 9,075 11,035 6,346 9,378 8,990 6,510 15,990 6,256 9,862 113,982$ 100.0%7.9%1,452 2,114 2,542 1,815 2,207 1,269 1,876 1,798 1,302 3,198 1,251 1,97222,796 50.0%4,356 6,342 7,627 5,445 6,621 3,808 5,627 5,394 3,906 9,594 3,753 5,917 68,389$ 100.0%4.6%2,904 4,228 5,084 3,630 4,414 2,539 3,751 3,596 2,604 6,396 2,502 3,945 45,593$ 66.7%100.0%1,452 2,114 2,542 1,815 2,207 1,269 1,876 1,798 1,302 3,198 1,251 1,972 22,796$ 33.3%1.6%1 1111111 11 1 115 0.0%109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 1,310,145$ 100.0%87.8%- - - - - - - - - - - - -$ 0.0%0.0%109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 109,179 1,310,145$ 100.0%90.5%0 0000000 00 0 000.0%- - - - - - - - - - - - -$ 0.0%0.0%- - - - - - - - - - - - -$ 0.0%0.0%- - - - - - - - - - - - -$ 0.0%0.0%0 0000000 00 0 000.0%- - - - - - - - - - - - -$ 0.0%0.0%- - - - - - - - - - - - -$ 0.0%0.0%- - - - - - - - - - - - -$ 0.0%0.0%0 0000000 00 0 000.0%- - - - - - - - - - - - -$ 0.0%0.0%- - - - - - - - - - - - -$ 0.0%0.0%- - - - - - - - - - - - -$ 0.0%0.0%2,905 4,229 5,086 3,631 4,415 2,540 3,752 3,597 2,605 6,397 2,503 3,946 45,607120,795$ 126,090$ 129,516$ 123,699$ 126,835$ 119,333$ 124,183$ 123,563$ 119,594$ 134,763$ 119,188$ 124,957$ 1,492,516$ 2,904$ 4,228$ 5,084$ 3,630$ 4,414$ 2,539$ 3,751$ 3,596$ 2,604$ 6,396$ 2,502$ 3,945$ 45,593$ 117,891$ 121,862$ 124,432$ 120,069$ 122,421$ 116,794$ 120,432$ 119,967$ 116,990$ 128,367$ 116,686$ 121,013$ 1,446,923$ Score Projections Spreadsheet 3b-SalesForecastYrs1-3 2/28/2023 10:00 AMDocusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Operating Expenses Year 1Prepared By:Johnathan Silvia Poseidon Ferry LLCMarch April May June July August September October November December January February Annual TotalsExpensesMaintenance & Repair 5,224 5,224 5,224 5,224 5,224 5,224 5,224 5,224 5,224 5,224 5,224 5,224 62,688$ Fuel 6,047 6,047 6,047 6,047 6,047 6,047 6,047 6,047 6,047 6,047 6,047 6,047 72,564$ Insurance 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 81,600$ Ticket Office (Miami) 250 250 250 250 250 250 250 250 250 250 250 250 3,000$ System Fee's (ticketing & concessions) 525 525 525 525 525 525 525 525 525 525 525 525 6,300$ Drug Testing 78 78 78 78 78 78 78 78 78 78 78 78 936$ Licenses & Permits 333 333 333 333 333 333 333 333 333 333 333 333 3,996$ Marketing 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000$ Office Supplies 150 150 150 150 150 150 150 150 150 150 150 150 1,800$ Utilities 800 800 800 800 800 800 800 800 800 800 800 800 9,600$ Pax Cost 2,845 2,845 2,845 2,845 2,845 2,845 2,845 2,845 2,845 2,845 2,845 2,845 34,140$ Operational Expenses 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000$ Subscriptions 583 583 583 583 583 583 583 583 583 583 583 583 6,996$ Memberships 250 250 250 250 250 250 250 250 250 250 250 250 3,000$ -$ Total Expenses28,385$ 28,385$ 28,385$ 28,385$ 28,385$ 28,385$ 28,385$ 28,385$ 28,385$ 28,385$ 28,385$ 28,385$ 340,620$ Other ExpensesDepreciation - - - - - - - - - - - - -$ InterestCommercial Loan 15,125 15,125 15,125 15,125 15,125 15,125 15,125 15,125 15,125 15,125 15,125 15,125 181,500$ Commercial Mortgage - - - - - - - - - - - - -$ Credit Card Debt - - - - - - - - - - - - -$ Vehicle Loans - - - - - - - - - - - - -$ Other Bank Debt 4,825 4,825 4,825 4,825 4,825 4,825 4,825 4,825 4,825 4,825 4,825 4,825 57,900$ Line of Credit - 15 15 15 15 15 15 15 15 24 24 24 189$ Bad Debt Expense - - - - - - - - - - - - -$ Total Other Expenses19,950$ 19,965$ 19,965$ 19,965$ 19,965$ 19,965$ 19,965$ 19,965$ 19,965$ 19,974$ 19,974$ 19,974$ 239,589$ Total Fixed Operating Expenses48,335$ 48,350$ 48,350$ 48,350$ 48,350$ 48,350$ 48,350$ 48,350$ 48,350$ 48,359$ 48,359$ 48,359$ 580,209$ Company Name:Score Projections Spreadsheet 5a-OpExYear1 2/28/2023 10:00 AMDocusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Operating Expenses Years 1-3Prepared By: Company Name:Johnathan SilviaLine Item 2023 Growth Rate 1 to 2 2024 Growth Rate 2 to 3 2025Maintenance & Repair 62,688 3.0% 64,569 3.0% 66,506 Fuel 72,564 3.0% 74,741 3.0% 76,983 Insurance 81,600 5.0% 85,680 5.0% 89,964 Ticket Office (Miami) 3,000 3.0% 3,090 3.0% 3,183 System Fee's (ticketing & concessions) 6,300 3.0% 6,489 3.0% 6,684 Drug Testing 936 3.0% 964 3.0% 993 Licenses & Permits 3,996 5.0% 4,196 5.0% 4,406 Marketing 24,000 3.0% 24,720 3.0% 25,462 Office Supplies 1,800 3.0% 1,854 3.0% 1,910 Utilities 9,600 3.0% 9,888 3.0% 10,185 Pax Cost 34,140 5.0% 35,847 5.0% 37,639 Operational Expenses 30,000 3.0% 30,900 3.0% 31,827 Subscriptions 6,996 3.0% 7,206 3.0% 7,422 Memberships 3,000 3.0% 3,090 3.0% 3,183 0- 3.0% - 3.0% - Total Expenses 340,620$ 353,233$ 366,345$ Other ExpensesDepreciation - - - InterestCommercial Loan 181,500 120,974 111,232 Commercial Mortgage - - - Credit Card Debt - - - Vehicle Loans - - - Other Bank Debt 57,900 17,254 6,343 Line of Credit 189 284 376 Bad Debt Expense - Total Other Expenses 239,589$ 138,512$ 117,952$ Total Operating Expenses 580,209$ 491,745$ 484,296$ Poseidon Ferry LLCScore Projections Spreadsheet 5b-OpExYrs1-3 2/28/2023 10:00 AMDocusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Cash Flow Forecast Year 1Prepared By: Company Name:Johnathan Silvia Poseidon Ferry LLCMarch April MayJuneJuly August September October NovemberDecemberJanuaryFebruaryTotalsBeginning Balance-$ -$ 1,063$ 4,251$ 3,832$ 5,357$ 2,233$ 2,114$ 1,611$ -$ 6,430$ 3,207$ Cash InflowsCash Sales 99,830 104,206 107,038 102,230 104,822 98,622 102,630 102,118 98,838 111,374 98,502 103,270 1,233,484$ Accounts Receivable - - - - - - - - - - - - -$ Total Cash Inflows99,830$ 104,206$ 107,038$ 102,230$ 104,822$ 98,622$ 102,630$ 102,118$ 98,838$ 111,374$ 98,502$ 103,270$ 1,233,484$ Cash OutflowsInvesting ActivitiesNew Fixed Asset Purchases - - - - - - - - - - - - -$ Additional Inventory-$ Cost of Goods Sold 2,400 3,494 4,202 3,000 3,648 2,098 3,100 2,972 2,152 5,286 2,068 3,260 37,680$ Operating ActivitiesOperating Expenses 28,385 28,385 28,385 28,385 28,385 28,385 28,385 28,385 28,385 28,385 28,385 28,385 340,620$ Payroll 44,507 44,507 44,507 44,507 44,507 44,507 44,507 44,507 44,507 44,507 44,507 44,507 534,084$ Taxes - - - - - - - - - - - - -$ Financing ActivitiesLoan Payments 26,742 26,742 26,742 26,742 26,742 26,742 26,742 26,742 26,742 26,742 26,742 26,742 320,908$ Owners Distribution-$ Line of Credit Interest 15 15 15 15 15 15 15 15 24 24 24 189$ Line of Credit Repayments-$ Dividends Paid-$ Total Cash Outflows102,034$ 103,143$ 103,851$ 102,649$ 103,297$ 101,747$ 102,749$ 102,621$ 101,801$ 104,944$ 101,726$ 102,918$ 1,233,481$ Net Cash Flows(2,204)$ 1,063$ 3,187$ (419)$ 1,525$ (3,125)$ (119)$ (503)$ (2,963)$ 6,430$ (3,224)$ 352$ 4$ Operating Cash Balance(2,204)$ 1,063$ 4,251$ 3,832$ 5,357$ 2,233$ 2,114$ 1,611$ (1,351)$ 6,430$ 3,207$ 3,559$ Line of Credit Drawdown2,204$ -$ -$ -$ -$ -$ -$ -$ 1,351$ -$ -$ -$ 3,555$ Ending Cash Balance-$ 1,063$ 4,251$ 3,832$ 5,357$ 2,233$ 2,114$ 1,611$ -$ 6,430$ 3,207$ 3,559$ Line of Credit Balance 2,204$ 2,204$ 2,204$ 2,204$ 2,204$ 2,204$ 2,204$ 2,204$ 3,555$ 3,555$ 3,555$ 3,555$ Score Projections Spreadsheet 6a-CashFlowYear1 2/28/2023 10:00 AMDocusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
From:ralph@mbeachconsulting.com
To:"Richardson, David"
Cc:"Callejas, Luis"
Subject:Poseidon Ferry Summary Proposal
Date:Sunday, May 14, 2023 10:32:57 PM
Attachments:Poseidon Ferry Summary Proposal.pdf
[ THIS MESSAGE COMES FROM AN EXTERNAL EMAIL - USE CAUTION WHENREPLYING AND OPENING LINKS OR ATTACHMENTS ]
Dear Comm. Richardson:
Please receive the attached for your review. Please call or write with any questions. Thank
you.
Regards,
Ralph
MBeach Consulting & Solutions, Inc.
1688 Meridian Avenue
7th Floor
Miami Beach, Florida 33139
t 305.674.8667
f 305.674.8965
c 305.216.2028
e ralph@mbeachconsulting.com
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
May 5, 2023
Commissioner Richardson
City of Miami Beach
1700 Convention Center Dr.
Miami Beach, Fl 33139
Re: Miami Beach Ferry Service
Dear Commissioner Richardson,
Enclosed please find a summary on the cost of relaunching our Miami Beach ferry service.
Our full proposal and financial breakdown is available for your review upon request.
We thank you for taking the time to review and consider this opportunity and look forward to
serving the City of Miami Beach and its residents, visitors and businesses. Please feel free to
contact me with any questions.
Best Regards,
Johnathan C. Silvia
Chief Executive Officer
Poseidon Ferry LLC
O – 833-443-3779 ext. 703
C – 305-790-5517
E – jsilvia@poseidonferry.com
POSEIDON FERRY LLC
400 SE 2nd Avenue
Miami, Florida 33131
833-44-FERRY
www.poseidonferry.com
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
PIONEERING WATER TRANSPORTATION IN MIAMI BEACH, MIAMI, AND MIAMI-DADE COUNTY
OBJECTIVE:
To relaunch a robust ferry service that is a cost efficient transportation alternative for residents
and visitors of Miami Beach while simultaneously mitigating traffic congestion on the main
arteries to the City.
SCOPE:
The pilot project would be for an initial term of 12 months. The ferry service would operate 7 days
per week with 21 departures daily, totaling 7,665 departures annually. Special additional
schedules can be created for special events taking place in the City of Miami. (i.e., Opera, Concerts,
Shows, Games, etc.). The ferry services would commence at 7:30am and conclude at 7:30pm.
Poseidon Ferry would coordinate and work with the City regarding schedule changes. The pilot
project contemplates the ferry will operate from the City owned and operated dock at Maurice
Gibb Memorial Park at no cost to Poseidon Ferry.
POSEIDON FERRY DELIVERABLES:
• Ferry service would commence as early as 7/1/2023.
• All infrastructure would be in place no later than 6/28/2023.
• Ticketing would take place via online, over the phone, mobile app or onboard the vessel.
• Reporting on a daily, weekly or monthly basis as requested by the City.
• Vessel amenities include onboard concession stand for snacks and drinks, air
conditioning, televisions, restrooms, and wi-fi.
• The vessel is ADA accessible.
COST:
The projected cost to relaunch and operate our Miami Beach ferry services for 12 months is
approximately $1,100,000. The projected annual revenues (ticketing, concessions, leisure) are
approximately $600,000. Assuming Poseidon Ferry retains one-hundred percent of revenues, a
$600,000 annual subsidy would be required from the City, payable to Poseidon Ferry at a rate of
$50,000 per month for the first 12 months to offset operational expenses.
FERRY FARES:
Commuters - $3 One Way | Residents - $5 One Way | Non-Residents $10 One Way
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
OIG
EXHIBIT 4
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Resolutions -C7 R
MIAMI BEACH
COMMISSION MEMORANDUM
TO:
FROM:
Honorable Mayor and Members of the City Commission
Alina T. Hudak, City Manager
DATE: June 28, 2023
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS MAY
24, 2023 MEETING, WAIVING THE FORMAL COMPETITIVE BIDDING
REQUIREMENT IN SECTION 2-367(E) AND DIRECTING THE CITY
ADMINISTRATION TO (1) NEGOTIATE A ONE (1) YEAR AGREEMENT
BEGINNING IN FISCAL YEAR 2024 WITH POSEIDON, LLC TO PROVIDE
A WATER TAXI SERVICE PILOT PROGRAM C'PILOT PROGRAMn)
BETWEEN MIAMI BEACH AND DOWNTOWN MIAMI; (2) IDENTIFY
FUNDING ; (3) .IDENTIFY LOCATIONS WHERE OPERATION WILL BE
CONDUCTED; AND (4) DEFINE THE· CITY CONTRIBUTION, AND FARE
STRUCTURE FOR THE PILOT PROGRAM.
--···-----·· ·-·----
REC OM M ENDAIION
The Administration recommends that the Mayor and City Commission ("City Commission")
approve the Resolution.
BACKGROUND/HISTORY
A water taxi is a watercraft that provides public transport service, usually, but not always, in an urban
environment. The service may be fixed schedule/fixed route with rrultiple stops, operating sinilarty to
a bus, or on-dermnd to rmny locations, operating sinilar1y to a taxi. Aside from being an attraction to
tourists who enjoy the scenic cross-bay route, rrore i"1)0rtantly, water taxi service can also provide a
convenient and reliable alternative mobility option to cormuters traveling daily to and from Downtown
Miani and the City of Miam Beach ("City"), connecting various destinations in the City and on the
mainland.
In January 2012, the City's Marine and Waterfront Protection Authority (uMWPA") discussed this
subject and passed a resolution recommending that the City develop a plan for waterborne
transportation services within the City and to mainland Miani. The recomnendation included the
development of a pier or dock at the Lincoln Road street-end with the potential for additional dock
locations at 5 Street, 10 Street, 14 Street, and the Purdy Avenue Dock at Maurice Gibb Park.
At the October 28, 2013 Neighborhood and Comrunity Affairs Cormittee rNCAC") meeting, the
NCAC recomrended that the City Adninistration explore the feasibility of the proposed dock
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locations, gather rrore details regarding the potential service, and provide an update to the NCAC.
On Decerrber 11, 2013, the City Cormission adopted Resolution No. 2013--28430 (Attachrrent A),
accepting the recorrmendation of the NCAC.
At the April 30, 2014 NCAC rreeting, City staff provided feedback regarding potential locations for
water taxi teminals and recorrmended conducting public rreetings to obtain cormunity input
regarding potential water taxi dock locations. The NCAC recorrmended that prior to conducting any
public rreetings, staff conduct a survey of City errployees to detemine if water taxi service would
provide a suitable alternative to corrrrute to work.
On July 23, 2014, the City Connission adopted Resolution No. 2014-28665 (Attachment B),
rejecting the NCAC's recorrmendation and, instead, directed the City Adrrinistration to prepare an
Invitation to Negotiate ("ITN") to seek proposals from qualified fiITT1S interested in providing the City
with waterborne public transportation services. Pursuant to this direction, the City issued an ITN for
a pilot cross-bay waterborne transportation service. The solicitation required that the water taxi
service be provided at no cost to the City and that the operator provide all necessary infrastructure,
including a docking facility, for the safe operation of the service. The ITN resulted in only one (1)
responsive and responsible bidder ("Water Taxi Miani, Inc."). As such, the City executed a contract
with Water Taxi Miarri, Inc. to operate a one (1) year water taxi pilot program from Decerri:Jer 30,
2016 to December 30, 2017, at no cost to the City, connecting the Purdy Avenue Dock at Maurice
Gibb Park, Sea Isle Marina at Omni, Bayside Marketplace in Downtown Miarri, and the Miarri
Beach Marina. Due to its high fares, weekend-only service, and infrequent weekday service, the pilot
was not deemed a practical, cofl1)8titive, reliable, convenient, or financially viable operation and was
teminated on Deceni:>er 30, 2017.
On Septerrber 8, 2020, Poseidon Ferry LLC ("Poseidon") presented a water ferry service operating
plan to the MWPA. Poseidon launched service on Noverri:Jer 29, 2020, using a double-deck vessel
with an air-conditioned lower deck. The water taxi service was privately owned and operated with no
public subsidy from Miam-Dade County, the City of Miam, or the City. The service provided
connectivity to and from the Hyatt Regency located at 400 SE 2nd Avenue in Downtown Miarri and
the Bentley Bay Marina located at 520 West Avenue in Miam Beach, where the water taxi connected
to the County's MetroMover system and the South Beach Trolley service, respectively. Service
corrmencement was shared with the City Cormission via LTC No. 422-2020 {Attachment C).
Poseidon's fare structure was COrTl)etitive with current public transit fares ($3 per passenger each
way for corml.lters). Per Poseidon, the net annual operating and maintenance cost of the service
was approximately $600,000 for one (1) vessel operating seven (7) days a week at a service
frequency of one (1) hour from Sunday to Friday (from 7:30 a.m to 7:30 p.m) and limted departures
on Saturday. The service was suspended on Decerrber 31, 2022 due to low ridership.
On March 27, 2023, at the request of Cornrissioner David Richardson, the City Connission
referred a discussion (Item C4 N) to the Finance and Economc Resiliency Cormittee rFERC") to
discuss if'Tl)lementing a water ta>d/ ferry service in the City, and providing a potential subsidy for the
program, in an effort to reduce the fares charged to passengers and prorrote an alternative rrode of
transportation between Miam Beach and downtown Miarri.
Dlling the May 24, 2023 FERG meeting, the Committee discussed this item and passed a
motion to proceed with a pilot program with Poseidon, authorizing the City Administration to
negotiate an agreement with Poseidon and v.or1c with Poseidon to identify the locations where
the operations will be conducted, and recommending waiver of the competitive bidding process
if required to do so, with the final City contribution and related terms, such as the discounted
Page 789 of 1808
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rates, to be determined in the agreement.
FERC recorrmended in favor of rroving the item to the City Cormission for consideration of its
rrotion.
ANALYSIS
Water taxi service could provide an alternative rrode of transportation for residents, visitors, and
workforce using waterways between the cities of Miarri Beach and Miam. This connectivity is
essential for residents who work, study, or engage in recreational activities in both cities. Currently,
the options available to residents, visitors, and workforce are to use their personal vehides or
mcrorrobility device, taxi/ride-share services, or public transportation (Miam-Dade County buses).
However, with an efficient cross-bay water taxi service, residents, visitors, and workforce can avoid
traffic congestion on the causeways and reduce travel time, rmking it a convenient, attractive, and
affordable comruting option.
Based on inforrmtion received from Poseidon, which operated ferry service between Miam Beach
and Miam until Decerrber 31, 2022, the net annual operating cost of the service was approximately
$600,000 (excluding docking fees) for one (1) vessel operating seven (7) days per week with one (1 )-
hour frequency of service from Sunday to Friday (from 7:30 am to 7:30 pm) and limted departures on
Saturday. The fare for Florida residents was $5 per person per trip, and the fare for visitors was $10
per person per trip. Poseidon's fare structure was cofll)etitive with current public transit fares at $3
per passenger each way for commuters.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
The cost associated with subsidizing the net annual operations and maintenance costs of a cross-
bay water taxi service (based on Poseidon's operating costs) is approximately $600,000. Currently,
funding has not been identified; however, this cost has been presented as part of a tentative I proposed FY 2024 operating budget enhancement for consideration by the City Cormission. Given
cross-bay water taxi service constitutes a regional transportation service extending beyond the
jurisdictional limts of Miarri Beach, should the City Cormission wish to explore an operating subsidy
for the service, the Admnistration recorrmmds pursuing a collaboration and_ potential funding
partnership with the City of Miam and/or Miarri-Dade County. •
CONCLUSION
This item is being presented to the City Commission for acceptance of the recommendation of
FER C's motion directing the Administration to (1) negotiate a one (1) year agreement starting
Fiscal Year 2024 with Poseidon to provide a water taxi service pilot program between Miami
Beach and DowntoYtfl Miami; (2) identify funding; (3) identify locations where operation will be
conducted, and (4) define the City's contribution, and fare structure for the pilot program.
Furthermore, the City Administration recommends pursuing a competitive solicitation for the .
service to better position the City to seek certain external funding opportunities, and to compare
and evaluate multiple vendors' approaches to the service, operating plans, and vessel
types/technologies.
Applicable Area
Page 790 of 1808
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Citywide
Is this a "Residents Right
to Know" item. pursuant to
City Code Section 2-14?
No
Strategic Connection
Does this Item utilize G.o.
~ond Funds?
No
Mobility -Increase multi-modal mobility citywide and connectivity regionally.
Legislative Tracking
Transportation and Mobility
Sponsor
Commissioner David Richardson
ATTACHMENTS;
Description
o Attachment A-Resolution No. 2013-28430
o Attachment B -Resolution No. 2014-28665
o Attachment C-LTC No. 422-2020
Page 791 of 1808
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OIG
EXHIBIT 5
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202533837
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER TO WAIVE, BY 5/7TH
VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT, IN
ACCORDANCE WITH SECTION 2367 OF THE CITY CODE, FINDING
SUCH WAIVER TO BE IN THE CITY'S BEST INTEREST, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICESAGREEMENT WITH PROFESSIONALSTONE DESIGN LLC.,
TO PROVIDE SERVICES INCLUDING ACID WASHING AND CLEANING
OF SIDEWALK STONES AND FISHPOND AT THE 7700 BLOCK OF
LINCOLN ROAD, USING PREVIOUSLYAPPROVED FUNDS IN FISCAL
YEAR 2025, IN THE NOT TO EXCEED AMOUNT OF $140,000.
WHEREAS, at the May 21, 2025 City Commission meeting, the Pedra Portuguesa
sidewalk maintenance item (C4J)was separated for discussion by Commissioner Kristen
Rosen Gonzalez; and
WHEREAS, the item was discussed at length, and a motion was made to include
140,000 for sidewalk repair in the Capital Budget Amendment (R7F), which passed 7-0;
and
WHEREAS, the Capital Budget Amendment item, including the Pedra Portuguesa
repair, was adopted by Resolution No. 2025-33683 by a 7-0 vote during the same meet-
ing; and
WHEREAS, since its contract with UTA Management, LLC terminated in 2019, the
City has led maintenance of the 1100 block of Lincoln Road, including the stone sidewalk
and adjacent fishpond; and
WHEREAS, over the last six years, City contractors have performed routine
maintenance on the sidewalk; and
WHEREAS, in early 2024, the City engaged Team Contracting for significant stone
restoration and repair work at a total cost of$227,525; and
WHEREAS, Pedra Portuguesa paving, while aesthetically pleasing, presents sig-
nificant maintenance challenges due to labor-intensive upkeep, costly skilled repairs, vul-
nerability to damage, and safety hazards when wet.
WHEREAS, City staff and UTA Management met in early 2025 to discuss potential
solutions for repairing or replacing the stones and adjacent fishpond; and
WHEREAS, following Ihat meeting, UTA Management provided a proposal dated
November 20, 2024 from Professional Stone Design LLC in the amount of $138,000,
covering nighttime pressure-washing, crack and hole repairs, missing-stone replacement,
grout installation, and sealer application; and
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
WHEREAS, Professional Stone Design LLC was the original installer and has the
most extensive knowledge of this Pedra Portuguesa installation; and
WHEREAS, City staff also received a quote dated May 11, 2023 from Arquigreen
Corp. for complete resurfacing and material replacement on the 1100 block of Lincoln
Road, totaling $420,400, not including annual maintenance; and
WHEREAS, after review, City staff recommended engaging Professional Stone
Design LLC for the repair work due to their extensive knowledge and familiarity with the
Pedra Portuguesa sidewalk; and
WHEREAS, under Sections 2366 and 2367 of the City Code, the City Manager
may waive bid requirements for construction-related services up to $300,000.
NOW, THEREFORE BE IT DULY 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 to waive, by 5/7th
vote, the formal competitive bidding requirement, in accordance with Section 2-367 of the
City Code, finding such waiver to be in the City's best interest, and authorize the City
Manager to execute a Professional Services Agreement with Professional Stone Design
LLC., to provide services including acid washing and cleaning of sidewalk stones and
fishpond at the 1100 block of Lincoln Road, using previously approved funds in Fiscal
Year 2025, in the not to exceed amount of$140,000.
PASSED and ADOPTED THIS a day of u/2025.
ATTEST: G // _L(:Cn vl--
JIi;. ) 5 )2 even Meiner, Mayor
Rafael E. Granado, City Clerk
APPROVED AS TO
FORM BLANGUAGE
FOR EXECUTION
1
I$ .2
CilyAtlom y r UW
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Resolutions -C7 AJ
MIAMIBEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of lhe Cily Commission
FROM: Eric Carpenter, Ciry Manager
DATE: July 23, 2025
TITLE: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER TO WAIVE, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING
REQUIREMENT, IN ACCORDANCE WITH SECTION 2367 OF THE CITY CODE,
FINDING SUCH WAIVER TO BE IN THE CIN'S BEST INTEREST, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH PROFESSIONAL STONE DESIGN LLC., TO
PROVIDE SERVICES INCLUDING ACID WASHING AND CLEANING OF
SIDEWALK STONES AND FISHPOND AT THE 1100 BLOCK OF LINCOLN ROAD,
USWG PREVIOUSLY APPROVED FUNDS IN FISCAL YEAR 2025, IN THE NOT
TO EXCEED AMOUNT OF $140,000.
RECOMMENDATION
The Administration recommends approving the Resolution.
BACKGROUND/HISTORY
At Ihe May 21, 2025 City Commission Meeting,the Pedra Portuguesa sidewalk maintenance itemC4J) was separated for discussion hy the sponsoring Commissioner, Kristen Rosen
Gonzalez. The item was discussed at length, and a motion was made by the sponsor to include
funding in the amount of$140,000 for ihe repair of the sidewalk, in Ihe Capital Budget Amendment
R7 F),which passed 7-0. The Capital Budget Amendment item, including the Pedra Portuguesa
repair,was subsequentty adopted by ResoWtion (202533683)7-0 during the same meeting.
The City has taken ihe lead in maintaining the 1100 Bbck of Lincoln Road since its contract with
UTA Management, LLC (UTA Management),terminated in 2019. Maintenance includes upkeep of
the sidewalk material made of stones, and the adjacent fishpond.
Over the last six years rou[ine maintenance of the sidewalk has 6een performed by City
contractors. However, in eady 2024, the City engaged Team Contracting to perform significant
stone restoratioNrepair work for a total $227,525. The Pedre Portuguesa, while aesthe[ically
pleasing, does present signiticant maintenance challenges. 7he following reasons outline why it
is so expensive to maintain and repair this specialty paving: labor-intensive upkeep,costly repairs
due to need for skilled craRsmen lo re-set paving stones), vulnerability to damage (can crack,
sink, and become tliscolored due ro tempereture changes), safety wncems (wom stones can
become slip hazards when wet).
City staff and UTA Management met eady this year to discuss potential solutions to repaidreplace
said stones and adjacent fishpond. Pollowing the meeting, UTA Management provided the City
with a proposal of services (quote dated November 20, 2024, Attachment A) from Professional
Stone Design LLC., in the amount of $138,000, which includes deep cleaning during nightlime
hours with a pressure-washing machine and special cleaning products sui able for the type of
stone, deep cleaning of the main fountain, repair of all holes and cracks, the replacement of any
missing stones in-kind to match the original sudacing, installa[ion of grou[where necessary, and
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Ihe application of a sealer coat to protect the stones. Professional Stone Design LLC was lhe
original contrector and therefore, has the most extensive knowledge of Ihis installa ion.
City staff was also in receipt of a second quote from Arquigreen Corp. (quote dated May 11,
2023), for complete resurfacing, and replacemen of materials of the 1100 Block of Lincoln Road
Mall (Attachment B), in the amount of$420,400, not induding yeady maintenance.
Upon City staff's review of all of the available information, it recommended that the original
installing contraclor, Professional Stone Design LLC be engaged to provide the repair work
needed, considering their eztensive knowledge and familiarity with the Pedra Portuguesa
sidewalk located on the 1100 Block of Lincoln Road Mall.
Under ihe City of Miami Beach's Code of Ordinances, Section 2366 and 2367,the City Manager
has the authority to waive[he bid requirements far construction-related services, up lo $300,000.
FISCAL IMPACT STATEMENT
140,000 Accoun[011-0840-000325.
Does this Ordinance reuuire a Business Imoact Estimate?
FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE ak h[[ps:/Iwww.miamibeachfl.gov/city-hall/city-clerk/meeting-noticesl
CONCLUSION
The Adminisiration recommends for the City Manager to exercise his authority to issue a bid
waiver in an amount not to exceed $140,000 and to engage Professional Stone Design, LLC to
perform the required maintenance and repair of the Pedra Portuguesa sidewalk.
Aoolicahle Area
South Beach
Is this a "Residents Rioht to Know" item. Is this item related to a G.O. Bond
oursuantto Citv Code Section 2-17? Proiect?
Yes No
Was this Aoenda Item initiallv reauested W a lobbvist which, as defined in Code Sec. 2-081.
includes a orincioal enqaqed in lobbvino? No
If so, specity the name ot lobbyist(s) and principal(s):
DeoaAment
Public Works
Soonsor(sl
Commissioner Knsten Rosen Gonzalez
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Co-soonsorlsl
Condensed Title
Accept Rec, Acid Wash/Clean Sidewalk Stones 8 Fishpond At 1100 Block of Lincoln Rd. PW
5/7
Previous Action (For Citv Clerk Use Onlvl
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
FACTURA
Professional Stone Design LLC. iNv000zio
14470sw 96th[err. miami,fl 33186 FECHA
305)'S49-4681 11/20/2024
y
tropi80@hotmail.com
SALDO DEU OR
USD $138,000.00
CLIENTE
LINCOLN 1111.
0 305 370 5086.
wc hung@u ia manageme nt.com
ARTICUlO TARIFA CAf.
PEDESTRIAN LINCOLN RD.— 138,000.00
APROX.49.000 square fee[.)
1- Protection of green areas for their care.
2- Deep cleaning with a pressure machine and special products for that type of stone.
This cleaning will be done at nigh[, meaning cleaning will be tlone 12:00 am to 6:00 am.
deterdek and acid cleaning protlucts).
3- Deep cleaning of(he main fountain with special polishing antl santling for these types of
stains.
4- Base preparation for greater firmness.
If the repair hole is larger than 3"x 3"feet, a compaction machine will be used.
compaction with line rock.)
5- Repair of more than 100 holes and crecks.
necessary ma[erials sand topping mix).
6- Installation of stones in necessary areas.
the same stone will be used).
7- Placing Grout in necessary areas.
We will use grout RAPID SET to combine the same color.)
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
ARTIWLO ARIFA CA
8- Finishing with a good quality sealer coa[.
Supreme Sealer EAGLE.
THIS QUOTE INCLUDES ALL MATERIALS NEEDED FOR THIS PROJECT AND INCLUDES
TRASH.
THE CITV OF MIAMI BEACH.. ( you will need to provider protection, and also if more stones
are necessary).
ESTIMATED WORK TIME OF 6 to 7 BUSINESS WEEKS.
HE ADVANCED FROM 50% WHEN SIGNING THE CONTRACT.
25% AT 4 WEEKS WORK STARTED.
25% FINISHED.
TOTAL 138,000.00
SALDODEUDOR USD $138 000.00
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
DATE MaY11.2023
I ^u OuaGHonO M823-1
T T CustomerlD MiamiBeach
aNmurastde a.{c:oi.hn
Ouotehonvalitlunfil: May31.2023
P°iy Prepaie06y. CatloOtloriui
Arquigreen Corp.
6130NE4Nq
MiamI,FL,3313]
Phone 305-]1&5961 Fax 305-158-90I1
Blllto: MIamlBeaeM1
Job loca[ion: 1111 Lincoln Rd.
Gomments or specisl ins[ructions:
P ices indudes.Ma[enal tlellvery,MstallaHon,ma[erial setling.Petlra Potluguesa,labor,gmut,fnal cleani g,sales ax.Workmens comp antl Liabili y Ins up to$
2 Million
1117 Lincoln Rd. Mall -Surtace repairs 8 upgrade
puanHty U.M.Dezcription P ke AMWNT
Areas that neetl complete resurFacing
Removal antl tlisposal of exisling Pavea.install o new s[ones.and Bmuting.
7,50000 Sf ColorsBlackandWhlle 5 40A0 $ 3WA 0.00
are vetl and re-installetl Is bgqerMan eacM1 Indrvitlual pahM1.bewuse we neetl ro assure
s mcNral contiguity)
Ckanin9.9rout reW r antl seal
30,100.00 5f Special cleaning wirti speci(c tle[ergent antl bmsM1es,grw[repair(wM1ere neetletl.antl sealing wnh g y.pp $ 120400.00
ItaliantecM1nologylmpregnanng Sealer.
TOTAL f i0
Sales Tax Included7
ANNUHL MAINTENHNCE
Annual maintenance:
30,100 00 Sf -)
Every M1ree months,special cleanin9+'Rh speci(ic detergent antl brushes,reinstall ot pieces a grout
5 4 00 $ 120.400.00
repairOnce a year it includes also sealing with ilalian technoligy Impegnaling sealer.
DELIVERYTIME
Material lead time,estimated In about 10I12 vreeks afler order confirmation
Initial work,o e execu ea In aboW 8110 weeks
EXCLUSIONSBarriwdes,signs.sequiriry equipment,lighting,srone handling from storage to/inal pb site position
NOTE:Pr¢ing wlcula[etl on Ne assumption oi continuous insWllation atjobsite,witti no intermptrons
In case o mobiliza[ion of crew.mobilization cos s will be applietl
Upon anival from overseas,ma erial will be bmught tojobsite.In case ihere Is lack of sloraging capability at site,malerial will be warehouseE,wsis billeE
Prices wiculaled vnih freighLS valitl at ihe tlate of 5/31123-In case of Irwrease,ddference will be billed
GONDITION OF PAYMENT
50%wi F PD.for new impotl of subsfiNte srone
25 0 30 days aXer starting
25o at<ompletition
This price excludes:permi s,permi lees,expediler.
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Contract/Document Routing Form
Contract No. Title
2025-33837 THE ACID WASHING AND CLEANING OF SIDEWALK STONE AND FISHPOND AT THE 1100 BLOCK OF
LINCOLIN ROAD
Contractor Requesting Department
PROFESSIONAL STONE DESIGN LLC PUBLIC WORKS
Department Director Name, Signature & Date ACM Name, Signature & Date
Document Type (Select One)
Type 1 - Contract, amendment, change order, or task order resulting from a procurement-issued competitive solicitation.
X Type 2 - Any other contract, amendment, change order, or task order that does not result from a procurement-issued competitive solicitation.
Type 3 - Independent Contractor Agreement (ICA) Type 6 - Tenant Agreement
Type 4 - Grant agreements with the City as the recipient Type 7 - Inter-governmental agency agreement
Type 5 - Grant agreements with the City as the grantor Type 8 - Other:
Summary & Justification
Pursuant to Resolution No. 2025-33837, the City of Miami Beach seeks to execute a Professional Services Agreement (PSA) with Professional Stone Design LLC for the acid washing and cleaning of sidewalk stone and the fishpond located at the 1100 block of Lincoln
Road. This resolution reflects the Mayor and City Commission’s acceptance of the City Manager’s recommendation to waive the formal
competitive bidding requirement, by a 5/7th vote, in accordance with Section 2367 of the City Code.
The waiver was determined to be in the City’s best interest due to the specialized nature of the services, the vendor’s proven
experience, and the urgency of maintaining the aesthetic and functional integrity of this high-traffic public space. Professional Stone
Design LLC has demonstrated the capability to perform this work efficiently and to the standards required by the City.
The PSA will be funded using previously approved allocations in the Fiscal Year 2025 budget, with a not-to-exceed amount of $140,000.
Execution of this agreement will allow the City to proceed with necessary maintenance and cleaning efforts that support public safety,
pedestrian experience, and the overall appearance of Lincoln Road.
Original Term Renewal Periods Total Term (Original + Renewals)
6 months 1 12 months
Funding Information
Grant Funded: Yes x No State Federal Other:
Cost & Funding Source
Year Annual Cost Account Require Enhancement
1 $138,000.00 160-0840-000325-29-403-521-00-00-00- Yes x No
2 Yes No
3 Yes No
4 Yes No
1. For contracts longer than five years, contact the Procurement Department. 2. Attach any supporting explanation needed. 3. Budget
approval indicates approval for the current fiscal year only. Future years are subject to City Commission approval of the annual
adopted operating budget.
Authority to Sign
City Commission Approved: Yes No Resolution No.: CC Agenda Item No.: CC Meeting Date:
If no, explain why CC approval is not required:
Legal Form Approved: Yes No If no, explain below why form approval is not necessary:
Compliance Approvals
Procurement:
Grants:
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Rev. 3/25
Budget:
Information Technology:
Risk Management:
Fleet & Facilities:
Human Resources:
Other:
Instructions for Completing & Routing Contract Coversheet
1. Every field must be completed. If the requested information is not applicable, enter N/A.
2. Prior to routing a document, it is advisable to confirm the authority to sign, funding/account information, risk
management compliance, and controlled purchases (IT or Fleet/Facilities) with the appropriate department.
3. Attach all supporting documentation (e.g., resolutions, commission memorandums, etc.) when routing.
4. When creating the workflow in DocuSign, in addition to the department head and applicable assistant/deputy city
manager, make sure the individuals (or designees) indicated in the Required Compliance Approvals section below
are included in the approval path. Note that compliance approvers must approve prior to the ACM.
5. The City Manager does not need to sign the cover sheet.
6. If you have any questions, contact the Procurement Department.
Required Compliance Approvals
When routing documents for approval by the city manager, in addition to the department head and applicable city manager,
make sure the following individuals (or designees) are included in the approval path, depending on each contract type.
Type 1 – Contract, amendment, or task order for the purchase of goods or services resulting from a competitive solicitation.
• Chief Procurement Officer
• Office of Management & Budget Director, plus “department assigned” Budget Analyst
(Except for non-monetary contracts, amendments, and consent of assignments; remove OMB)
• Grants Management Division Director – if the purchase is grant-funded.
• Controlled purchases –
o Facilities and Fleet Director – if the purchase involves a “facilities” or “vehicle” item.
o Information Technology Director – if the purchase involves a technology item.
Type 2 – Other contracts or amendments for the purchase of goods or services not resulting from a procurement-issued
competitive solicitation.
• Chief Procurement Officer (Except for Bid Waivers; remove Procurement Signature)
• Office of Management & Budget Director, plus “department assigned” Budget Analyst
(Except for non-monetary contracts, amendments, and consent of assignments; remove OMB)
• Human Resources Senior Risk Officer
• Grants Management Division Director – if the purchase is grant-funded.
• Controlled purchases –
o Facilities and Fleet Director – if the purchase involves a “facilities” or “vehicle” item.
o Information Technology Director – if the purchase involves a technology item.
Type 3 – Independent Contractor Agreements
• Human Resources Director
• Office of Management & Budget Director, plus “department assigned” Budget Analyst
• Note: ICAs must include a resume of the individual selected.
Type 4 – Grant agreements when the City is the recipient.
• Grants Management Division Director
Type 5 – Grant agreements when the City is the grantor.
• As appropriate, depending on the grant type.
Type 6 – Tenant agreements
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Rev. 3/25
• Facilities and Fleet Director
Type 7 – Inter-governmental agency agreement
• Chief Financial Officer
Type 8 – Other (e.g., scholarships, utilities, educational initiatives, etc.)
• Office of Management & Budget Director, plus “department assigned” Budget Analyst
For any other type, contact the Procurement Department for assistance.
Delete this page before routing the cover sheet.
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
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EXHIBIT 6
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
RESOLUTION NO; 2023-32644
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF MIAMI
BEACH FLORIDA, WAIVING, BY 5nTH VOTE, THE FORMAL COMPETITIVE
BIDDING REQUIREMENT IN SECTIO.N 2-367(E) OF THE CITY CODE,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND
ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC
RESILIENCY COMMITTEE, AT ITS MAY 24, 2023 MEETING, DIRECTING
THE CITY ADMINISTRATION TO (1) NEGOTIATE A ONE (1) YEAR
AGREEMENT BEGINNING IN FISCAL YEAR 2024 WITH POSEIDON FERRY,
LLC TO PROVIDE A WATER TAXI SERVICE PILOT PROGRAM ("PILOT
PROGRAM") BETWEEN MIAMI BEACH AND DOWNTOWN MIAMI; (2)
IDENTIFY FUNDING; (3) IDENTIFY LOCATIONS WHERE OPERATION WILL
BE CONDUCTED; AND (4) DEFINE THE CITY CONTRIBUTION, AND FARE
STRUCTURE FOR THE PILOT PROGRAM; AND FURTHER REQUIRING
THAT THE FINAL AGREEMENT BE SUBJECT TO APPROVAL BY THE
MAYOR AND CITY COMMISSION.
WHEREAS, a water taxi is a watercraft that provides public transport service, usually,
but not always, in an urban environment; and
WHEREAS, aside from being an attraction to tourists who enjoy the scenic cross-bay
route, more importantly, water taxi service can also provide a convenient and reliable alternative
mobility option to commuters traveling daily to and from Downtown Miami and the City of Miami
Beach ("City"), connecting various destinations in the City and on the mainland; and
WHEREAS, on January 2012, the City's Marine and Waterfront Protection Authority
("MWPA") discussed this subject and passed a resolution recommending that the City develop
a plan for waterborne transportation services within the City and to mainland Miami; and
WHEREAS, on July 23, 2014, the City Commission adopted Resolution No. 2014-28665
directing the City Administration to prepare an Invitation to Negotiate ("ITN") to seek proposals
from qualified firms interested in providing the City with waterborne public transportation
services; and
WHEREAS, the ITN resulted in only one (1) responsive and responsible bidder, Water
Taxi Miami, Inc.; and
WHEREAS, the City executed a contract with Water Taxi Miami, Inc. to operate a one
(1) year water taxi pilot program from December 30, 2016 to December 30 , 2017, at no cost to
the City; and
WHEREAS, due to its high fares, weekend-only service, and infrequent weekday service,
the pilot was not deemed a practical, competitive, reliable, convenient, or financially viable
operation and was terminated on December 30, 2017; and
WHEREAS, on September 8, 2020, Poseidon Ferry LLC ("Poseidon") presented a water
ferry service operating plan to the City's Marine and Waterfront Protection Authority (MWPA);
and
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
WHEREAS, Poseidon launched service on November 29, 2020, using a double-deck
vessel with an air-conditioned lower deck; and
WHEREAS, Poseidon's water taxi service was privately owned and operated, with no
public subsidy from Miami-Dade County, the City of Miami, or the City; and
WHEREAS, the service was suspended on December 31, 2022 due to low ridership; and
WHEREAS, on March 27, 2023, at the request of Commissioner David Richardson, the
City Commission referred a discussion (Item C4 N) to the Finance and Economic Resiliency
Committee ("FERC") to discuss implementing a water taxi/ ferry service in the City, and providing
a potential subsidy for the program, in an effort to reduce the fares charged to passengers and
promote an alternative mode of transportation between Miami Beach and downtown Miami; and
WHEREAS, Poseidon represented that the net annual operating and maintenance cost
of the service was approximately $600,000.00 per year for one (1) vessel operating seven (7)
days a week at a service frequency of one (1) hour from Sunday to Friday (from 7:30 a.m. to
7:30 p.m.) and limited departures on Saturday; and •
WHEREAS, during the May 24, 2023 FERC meeting, the Committee discussed the item
and passed a motion, recommending a waiver of the formal competitive bidding process, if
required to do so, and directing the Administration to: (1) proceed with negotiating a one-year pilot
program with Poseidon, commencing during FY 2024, including related contract terms, such as
identifying the locations where the operations would be conducted, the final City contribution
toward the operation of the program, and the fare structure for use of the services; and
WHEREAS, on March 27, 2023, at the request of Commissioner Steven Meiner, the City
Commission referred a discussion (Item C4 0) to the Public Safety and Neighborhood Quality of
Life Committee ("PSNQLC") and the Finance and Economic Resiliency Committee ("FERC")·to
discuss obtaining federal, state and county funding to implement a free water taxi/ferry service
program in Miami Beach, to incentivize residents to use water taxis as an alternative mode of
transportation; and
WHEREAS, following the May 23, 2023 PSNQLC meeting, the Administration is
submitting a companion agenda item, recommending that the City Administration: (1) study the
possibility of developing a new dock, and the various components of such a development,
including the cost and possible funding sources for' a local match, should any State and Federal
grants be available; (2) add a water taxi/ferry service to the City's list of legislative priorities; (3)
refer the discussion of the development of a new dock to the Marine and Waterfront Protection
Authority and the Transportation, Parking and Bicycle-Pedestrian Facilities Committee to discuss
and seek input on the appropriate location for a new dock; and (4) explore the different
components of a water ferry program, including evaluating the different approaches to the service
operating plans and vessel type/technologies, in anticipation of an issuance of a competitive
solicitation for the service; and
WHEREAS, based upon the foregoing, and in preparation for the anticipated issuance of
a competitive bidding solicitation for a water ferry service, the City Manager recommends waiving,
by 5llth vote, the formal competitive bidding requirement in Section 2-367(e) of the City Code,
finding such waiver to be in the best interest of the City, and accepting the recommendation of
the FERC, at its May 24, 2023 meeting, to utilize FY 2024 funds and negotiate a one-year pilot
program with Poseidon.
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby waive, by 517th vote, the formal competitive bidding requirement in Section
2-367(e) of the City Code, finding such waiver to be in the best interest of the City, and accept
the recommendation of the Finance and Economic Resiliency Committee, at its May 24, 2023
meeting, directing the City Administration to (1) negotiate a one (1) year agreement beginning in
fiscal year 2024 with Poseidon Ferry, LLC to provide a water taxi service pilot program ("Pilot
Program") between Miami Beach and Downtown Miami; (2) identify funding; (3) identify locations
where operation will be conducted; and (4) define the City contribution, and fare structure for the
Pilot Program; and further require that the final agreement be subject to approval by the Mayor
and City Commission.
PASSED and ADOPTED this 28th day June, 2023.
ATTEST:
d JUL -5 2023
Dan Gelber, Mayor
Rafael E. Granado, City Clerk
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~ 6-0'1-?.?
City Attorney~ Dote
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
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EXHIBIT 7
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
From:Johnathan Silvia
To:Gonzalez, Jose R.; Rodriguez, Otniel
Cc:Rafael E. Andrade
Subject:Poseidons Projections
Date:Thursday, June 6, 2024 3:10:52 PM
Attachments:MB Subsidy projections OPTION2.xlsxMB Subsidy projections REVISED.xlsx
[ THIS MESSAGE COMES FROM AN EXTERNAL EMAIL - USE CAUTION WHENREPLYING AND OPENING LINKS OR ATTACHMENTS ]
Hello,
Please see attached. I have included the original projections (labeled option 2).
Please refer to tab 6A – Line 29O which shows the net cash outflow in the amount of
$1,259,523 which is the overall expected cost to fully operate the entire service.
However, The spreadsheet was originally created last year so I did update the following items;
OPERATIONAL EXPENSES:
The Sea Isle Marina docking fees were added and the Hyatt Office fee
removed (TAB 5A – Line 13)
The Insurance Premium Actual was adjusted. The prior rate was based on
2023 costs which have increased with the additional pollution limits
mandated by the city as well as the additional liability required for sea isle
marina. (TAB 5A – Line 12)
REVENUE
With the exclusion of the sale of alcohol on ferry service departures the
“skyline” revenue will no longer be able to be captured which will cause a
$263,000 deficit (TAB 3A – Lines 23 – 27)
Ticket Sales will need to be adjusted for the first month as they do not
account for the residents free sailings (TAB 3A – Lines 17 – 21)
I saved it under a new copy (labeled revised) and attached. On the revised model, please
revert back to tab 6A – Line 29O which, with these small changes have increased the overall
cash outflow amount to $1,320,368 and with the loss of the ability to sell alcohol the
projections are now showing an annual loss of $121,976.
The ridership projections were based on historical data and are conservative. Increased
ridership will offset the loss.
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Johnathan Silvia
Poseidon Ferry LLC
o - 844-MBFERRY (844-623-3779)
c - 305-790-5517
www.poseidonferry.com
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Balance Sheet Years 1-3
Prepared By: Company Name:
Johnathan Silvia Poseidon Ferry LLC
ASSETS 2024 2025 2026
Current Assets
Cash 27,275 59,140 43,440
Accounts Receivable - (0) 0
Inventory - - -
Prepaid Expenses - - -
Other Initial Costs - - -
Total Current Assets 27,275$ 59,140$ 43,440$
Fixed Assets
Real Estate -- Land - - -
Real Estate -- Buildings - - -
Leasehold Improvements - - -
Equipment - - -
Furniture and Fixtures - - -
Vehicles - - -
Other - - -
Total Fixed Assets -$ -$ -$
(Less Accumulated Depreciation)-$ -$ -$
Total Assets 27,275$ 59,140$ 43,440$
LIABILITIES & EQUITY
Liabilities
Accounts Payable - - -
Commercial Loan Balance 893,246 828,015 753,043
Commercial Mortgage Balance - - -
Credit Card Debt Balance - - -
Vehicle Loans Balance - - -
Other Bank Debt Balance 245,712 128,360 (0)
Line of Credit Balance 28,440 28,440 28,440
Total Liabilities 1,167,398$ 984,815$ 781,483$
Equity
Common Stock - - -
Retained Earnings 80,343 294,791 482,423
Dividends Dispersed/Owners Draw - - -
Total Equity 80,343$ 294,791$ 482,423$
Total Liabilities and Equity 1,247,740$ 1,279,606$ 1,263,906$
(1,220,465)$ (1,220,466)$ (1,220,466)$
Warning: Not Balanced Warning: Not Balanced Warning: Not Balanced
Balance sheet in or out of balance?
MB Subsidy projections REVISED 8-BalanceSheet 11/5/2025 11:35 AM
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Breakeven Analysis
Prepared By:Company Name:
Johnathan Silvia Poseidon Ferry LLC
Gross Margin 1,202,459$
Total Sales 1,337,398$
Gross Margin/Total Sales 89.9%
Payroll $ 502,649.17
Operating Expenses $ 610,020.23
Operating + Payroll $ 1,112,669
Gross Margin % of Sales 89.9%
Total Fixed Expenses $ 1,112,669
Yearly Breakeven Amount 1,237,533$
Monthly Breakeven Amount 103,128$
Gross Margin % of Sales
Total Fixed Expenses
Breakeven Sales in Dollars (Annual)
MB Subsidy projections REVISED BreakevenAnalysis 11/5/2025 11:35 AM
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
OIG
EXHIBIT 8
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
EXHIBIT A: Sample Report of Diver Inspection
"Dale R"
Bottom Paint: Fair/Poor condition. Heavy grass growth on waterline.
Running Gear: Good condition. No apparent damage.
Intakes: Clean and clear of debris.
Zincs: Good condition.
"Riverwalk"
Bottom Paint: Good/Fair condition.
Running Gear: Good condition. No apparent damage.
Intakes: Clean and clear of debris.
Zincs: Fair condition.
"Lauderdale"
Bottom Paint: Fair condition.
Running Gear: Good condition. No apparent damage. Removed line from both propellers.
Intakes: Clean and clear of debris.
Zincs: Shaft zincs need replacement.
"Water Shuttle 2"
Bottom Paint: Good condition. Some peeling around drive.
Running Gear: Good condition. No apparent damage.
Intakes: Clean and clear of debris. (Not painted.)
Zincs: Good condition.
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
"Bio Bus"
Bottom Paint: Good condition.
Running Gear: Good condition. No apparent damage.
Intakes: Clean and clear of debris.
Zincs: Good condition.
"Water Shuttle 1"
Bottom Paint: Good condition.
Running Gear: Good condition. No apparent damage.
Intakes: Clean and clear of debris. (Intake covers are missing.)
Zincs: Good condition.
"Downtowner"
Bottom Paint: Fair condition.
Running Gear: Cutlass bearing was found loose and slid down shaft to prop. Attempted to
retighten.
Intakes: Clean and clear of debris.
Zincs: Fair condition.
"J.D. Hanson"
Bottom Paint: Fair condition.
Running Gear: Loose screw on keel shoe.
Intakes: Clean and clear of debris. (Not painted.)
Zincs: Rudder zinc was found loose. Could not tighten. Needs replacement.
Video Documentation
https://gopro.com/v/Owre59nOzG2ly
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
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EXHIBIT 9
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
OFFICE OF THE CITY ATTORNEY
F L 0 R D A
RICARDO J.DOPICO
City Attorney
September 16,2024
Mr.Johnathan Silvia,CEO
Poseidon Ferry,LLC
400 S.E.2%Avenue
Miami,FL 33131
Telephone:(305)673-7470
Facsimile:(305)673-7002
Via Federal Express Mail and
E-Mail:jsilvia@poseidonferry.com
Re:Concession Agreement between the City of Miami Beach (the "City")and Poseidon
Ferry,LLC,a Delaware limited liability company (the "Concessionaire")dated
March 14,2024 (the "Agreement")for the Turnkey Implementation,Management,
Operation (including Dock Operations)and Maintenance of a Waterborne
Transportation Services Pilot Program.
Notice of Default
Dear Mr.Silvia:
Pursuant to Section 13.4 (Failure to Operate)of the Agreement,"failure of Concessionaire to
operate the Program at the Concession Area for a period of time exceeding two (2)continuous
days shall constitute a material default under this Agreement with no cure period."It is important
to note that since the commencement of the water taxi pilot program service,on June 30,2024,
there have been three (3)instances where Poseidon has not been able to operate the water taxi
service for more than two (2)consecutive days as a result of mechanical failures of the vessel.
The first instance occurred from July 10"through July 14,resulting in five (5)days of no service;
the second instance occurred from August 7 through August 9,resulting in three (3)days of no
service;and the third instance occurred when Concessionaire suspended the water taxi service
as of August 20,2024 until further notice.
Please consider this communication as formal notice,that pursuant to Section 13.4 of the
Agreement,the City is hereby terminating the Agreement as of the date of receipt of this letter
("Termination Date"),subject to survival of any and all provisions of the Agreement intended to
survive termination of the Agreement.In addition to termination of the Agreement,the City
reserves the right to pursue any and all remedies available under the Agreement,in equity and at
law in connection with any of Concessionaire's defaults under the Agreement.
1700 Convention Center Drive-Fourth Floor-Miami Beach,Florida 33139
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F
Termination Letter to Poseidon Ferry,LLC
September 16,2024
Page 2
Since Concessionaire is no longer authorized to operate the water taxi services from the
Concession Area as of the Termination Date,pursuant to Section 13.7 (Surrender of Concession
Area/Removal by Concessionaire of Equipment/Improvements)of the Agreement,
Concessionaire,at its sole cost,is hereby required to return the Concession Area to the City in
the same condition as the Concession Area was in prior to the Commencement Date,reasonable
wear and tear excepted,and remove all equipment and Concession Area Improvements from the
Concession Area.
Should you have any questions,please do not hesitate to contact Mikhail Ryabov,P.E.,the
Transportation &Mobility Department Transportation Manager at 305-673-7000 Ext.26831.
Kindly Govern Yourself Accordingly.
Sincerely,z r..7o
Gisela Nansen Torres
Senior Assistant City Attorney
C:
Via U.S.Mail:
Mr.Johnathan Silvia,CEO
Poseidon Ferry,LLC
P.O.Box 1567
Ormond Beach,FL 32175
Via E-mail only:
Ricardo J.Dopico,City Attorney
Jose Gonzalez,Transportation &Mobility Department Director
Rickelle Williams,Assistant City Manager
Eric T.Carpenter,City Manager
1700 Convention Center Drive Fourth Floor-Miami Beach,Florida 33139
Docusign Envelope ID: 775E101E-4C6C-4E03-9682-AB41FCB3808F