HomeMy WebLinkAbout2005-25939 ResoRESOLUTION NO. 2005-25939
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, WAIVING BY 5/7THS
VOTE, THE COMPETITIVE BIDDING PROCESS, FINDING SUCH
WAIVER TO BE IN THE CITY'S BEST INTEREST, AND
APPROVING AND AUTHORIZING THE ADMINISTRATION TO
INCREASE A STANDING ORDER TO TROPICAL TENTS, INC.,
FOR CONTINUING THE RENTAL OF ONE CUSTOM SIZE
CLEAR SPAN, ALUMINUM FRAME TENT FOR USE AS A
TEMPORARY GOLF CART STORAGE AND ELECTRICAL
CHARGING FACILITY AT MIAMI BEACH GOLF CLUB, ON A
MONTH TO MONTH BASIS, NOT TO EXCEED THIRTY (30)
MONTHS FROM THE ADOPTION OF THIS RESOLUTION, FOR
A TOTAL COST NOT TO EXCEED $120,000.
WHEREAS, in order to open the Miami Beach Golf Club in time to
meet the 02/03 Winter golf season, the Administration rented a tent to serve
as the temporary golf cart facility, in anticipation that the permanent cart
charging facility would be completed mid year of 2003; and
WHEREAS, in an effort to obtain the best option for the City an
evaluation of cost to purchase versus rental was conducted and, based on
the results of this comparison, the decision to rent the tent was made, and
the City entered into a contract with Tropical Tents, Inc.; and
WHEREAS, the construction of the new Miami Beach Golf Club golf
cart storage facility is behind schedule due to funding delays; and
WHEREAS, based on the most recent construction schedule the
Administration will need to continue renting the existing tent as temporary
golf cart storage and electrical charging facility for an additional twenty-four
(24) to thirty (30) months; and
WHEREAS, the City Commission previously increased the standing
order for Tropical Tents, Inc., in June of 2003, in the amount of $69,000, for a
sixteen (16) month period; and
WHEREAS, Tropical Tents, Inc. has reduced the rental from $4,300
to $4,000 per month; and
WHEREAS, issuing a bid for a new tent could take several months,
resulting in significant business disruption and lost revenue to the Golf Club;
and
WHEREAS, during this transition period the Golf Club would be without
the ability to provide electric golf carts to its clientele which would, in
essence, close the golf course; and
WHEREAS, at this time the permanent cart charging facility design is
complete and pending permitting approvals; potential funding from the
Convention Development Tax (CDT) monies is being evaluated; and
WHEREAS, it is anticipated that the permitting and construction bid
processes will be completed in the next six (6) months with the actual
construction taking an estimated eighteen (18) months; and
WHEREAS, based on the rental analysis; the potential negative financial
impact that replacing the tent would have on the golf course operations; and the
anticipated timeline for the new cart charging facility, the Administration
recommends that the Mayor and City Commission authorize the Administration
waive competitive bidding, finding such waiver to be in the best interest of the
City, and increase the current standing order to Tropical Tents, Inc., to allow the
Miami Beach Golf Club to continue to operate temporary golf cart storage and
charging facility until such time the new facility is constructed.
NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR
AND CITY COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and
City Commission hereby waive, by 5/7ths vote, the competitive bidding process,
finding such waiver to be in the City's best interest, and approve and authorize
the Administration to increase a standing order to Tropical Tents, Inc., for
continuing the rental of a custom size clear span, aluminum frame tent for use as
a temporary golf cart storage and electrical charging facility at the Miami Beach
Golf Club, on a month to month basis, not to exceed thirty (30) months from the
date of adoption of this Resolution, for a total cost not to exceed $120,000.
/ /
~ MAYOR
ATTEST: ~ David Dermer
i ~ITY CLERK
,~oDert ~4'arcn er
T:~AGENDA~2005\Jul0605\Consent\Tropical Tent_Com. Reso. 7 6 05.do¢
APPROVED ASTO
FORM&LANGUAGE
&FOR EXECUTION
Condensed Title:
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
A Resolution approving a waiver, by 5/7ths vote, of the competitive bidding process, finding such waiver to
be in the City's best interest; and authorizing the Administration to increase a standing order to Tropical
Tents, Inc., for the continued rental of a custom aluminum frame tent for use as a temporary golf cart
storage and charging facility at the Miami Beach Golf Club, on a month to month basis not to exceed 30
months for a total cost not to exceed $120,000.
Issue:
IShall the City continue to rent a tent for the temporary golf cart storage and charging facility necessary to I
permit the continued operation of the Miami Beach Golf Club?
I
Item Summary/Recommendation:
In order to open the Miami Beach Golf Club in time to meet the 02/03 winter golf season the administration
rented a tent to serve as the temporary golf cart facility. At the time it was anticipated the new golf cart
facility would be completed mid year of 2003. Based on the most recent construction schedule it is now
anticipated the new golf cart storage and charging facility could be completed in the next twenty-four (24)
months pending final resolution of the project funding. To issue a bid for a new tent would take an
estimated 120 days and an extended transition period resulting in significant business disruption and lost
revenue to the golf club.
Prior to renting this tent, due diligence was done by the Administration to ensure the City obtained the best
rental rate available. It should also be noted that because of the proposed time extension, Tropical Tent,
Inc., has reduced the monthly rent from $4,300 to $4,000. Approval of the resolution to continue the rental
of the temporary golf cart storage and charging facility to permit the continued operation of the Miami
Beach Golf Club is recommended.
Advisory Board Recommendation:
Financial Information:
Funds: $ 24,000 011.0970.000323 - FY04i0~ .....
48,000 011.0970.000323-FY05/06
(Included as budget request for FY
/ 05~06)
48,000 011.0970.000323- FY06/07
(To be Included as budgetrequest
forFY06/07 if necessary)
Finance Dept. ~Ot~i $120,000
City Clerk's Office Legislative Tracking:
1
Si n-Offs:
T:~AGENDA~005\Jul0605\Consent\Tropical Tent_Summary coy sheet- 7 6.doc
AGENDA ITEM ~--'-) ~-~
DATE 7 --o5'
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci .miami-beach .fi.us
COMMISSION MEMORANDUM
To:
From:
Subject:
Mayor David Dermer and Date: July 6, 2005
Members of the City Commission
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING A WAIVER, BY 517THS VOTE,
OF THE COMPETITIVE BIDDING PROCESS, FINDING SUCH WAIVER TO
BE IN THE CITY'S BEST INTEREST; AND AUTHORIZING THE
ADMINISTRATION TO INCREASE A STANDING ORDER TO TROPICAL
TENTS, INC., FOR CONTINUING THE RENTAL OF ONE CUSTOM SIZE
CLEAR SPAN, ALUMINUM FRAME TENT FOR USE AS A TEMPORARY
GOLF CART STORAGE AND ELECTRICAL CHARGING FACILITY AT
MIAMI BEACH GOLF CLUB, ON A MONTH TO MONTH BASIS NOT TO
EXCEED THIRTY (30) MONTHS FROM THE ADOPTION OF THIS
RESOLUTION, FOR A TOTAL COST NOT TO EXCEED $120,000.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
$120,000 - Funding is available from the Parks and Recreation Department, Miami Beach
Golf Club Division Budget - FY 04/05 - Account Number 011.0970.000323
in the amount of $24,000; $48,000 as included in the departmental FY 05/06 budget
request and $48,000 anticipated from the departmental 06/07 budget request.
ANALYSIS
The comprehensive plan for the Miami Beach Golf Club improvements included a new
clubhouse, a maintenance facility, on course restrooms and a new golf cart storage facility.
The old cart barn was demolished to permit the construction of the new golf cart facility and
for needed temporary parking. In order to open the Miami Beach Golf Club for the 02/03
winter golf season the Administration rented a tent to serve as the temporary golf cart
charging facility. At the time the tent was rented it was anticipated the permanent cart
charging facility would be completed in 2003. However, due to the additional cost of the
clubhouse construction and the need to identify the additional funding the Administration
needed to continue the rental to safely store, charge and maintain seventy-five (75) leased
golf carts and the GPS (global positioning system) computer installed on each cart.
Commission Memorandum
July 6, 2005
Tropical Tent Rental Standing Order Increase
Page 2
To be certain the City obtained the best possible product and rate, an informal competitive
bid was conducted in October 2002. There were only a few local companies capable of
renting this type of custom size structure. A total of eight (8) local tent rental dealers were
contacted resulting in three (3) responsive bids and five (5) "No Bid" responses. Tropical
Tents, Inc. was deemed the lowest and best, responsible bidder.
BID TABULATION
October 10, 2002
Tropical Tents Inc.
$4,642.86/month
United Rental
$5,135.00/month
Christina's Party Production Inc.
$6,660.00/month
In an effort to address the City's need for a temporary cart charging facility both the options
of purchasing and renting a tent were evaluated in late summer of 2002. The option to buy
a new tent was determined to be cost prohibitive based on the short-term use, and urgency
for delivery, limited storage space, and the need for trained staff to provide assembly
expertise. The cost to purchase a new tent would start at approximately $67,053 not
including movable side walls (windows) and electrical light fixtures and labor and material
for installation.
Based on the above information a decision was made to rent a tent from the Iow bidder.
Tropical Tents Inc. has installed numerous tents throughout the City of Miami Beach during
special events, and is also an approved vendor for Miami-Dade County, and the City of
Miami.
The City Commission previously increased the standing order for Tropical Tents Inc., in
June of 2003, in the amount of $69,000 for a sixteen (16) month period of time. At that
time Tropical Tents Inc., reduced their rent from $4,642.86 to $4,300 per month for an
annual reduction of $4,114.32. With the extended rental, Tropical Tent Inc., has agreed to
further reduce the monthly rental from $4,300 to $ 4,000. Additionally, they have agreed to
replace all worn panels with new ones and pressure clean the entire facility at no additional
charge to the City. They will also insure the tent and will respond to the City's request to
remove the tent skin when necessary due to a hurricane warning. Last year Tropical Tents
Inc., responded two times to the City's request to remove the tent panels due to warnings,
again at no cost to the City.
As a point of information since the initial rental date of November 5, 2002, the City has
expended a total of $131,915 in rent and approximately $70,000 in the electrical services
installation.
Commission Memorandum
July 6, 2005
Tropical Tent Rental Standing Order Increase
Page 3
Based on an estimate provided by the Purchasing Division it would take approximately 120
days to issue a bid for a new tent. Once a bid is awarded additional time would be required
for the issuance of permits and inspection process to be finished, the existing tent removed
and a new tent and the requisite electrical services installed. During this transition period
(the time from removal of the existing tent to the construction of a replacement tent) the
golf club would be without the ability to provide electric golf carts to our clientele which
would in essence close the golf course.
The figures below are actual revenues collected at the Miami Beach Golf Club. They are
being provided as an example of the potential for lost revenue should a new tent need to
be installed dependent upon the time of season and time taken to complete the work. It
should also be noted that in addition to the lost revenue there will also be the on-going
monthly expenses to be paid for during the period of time the course is without the use of
golf carts. These include but not limited to the golf cart fleet ($4,365 monthly), the GPS
(global positioning system/$4,175 monthly), the contractual payment to the Professional
Course Management (City's management company/$10,500 per month), the need to
prorate the annual membership fee for the members' loss of play, and the cost of golf
course operations and maintenance staff and supplies.
Golf Cart Rental Total Golf Course
Month Revenue (included in Revenue
total revenue)
October- 04 $79,248 $277,466
November - 04 68,884 305,969
December - 04 68,784 311,462
January - 05 $79,512 $541,595
At this time the permanent cart charging facility design is complete and pending permitting
approvals. Additionally, potential funding from the Convention Development Tax (CDT) is
being evaluated. It is anticipated that the permitting and construction bid processes will be
completed in the next six months and pending resolution, of the funding the actual
construction taking an estimated 18 months.
CONCLUSION
Based on the rental analysis, the potential negative financial impact that replacing the tent
would have on the golf course operations and the anticipated timeline for the new cart
charging facility the Administration recommends that the Mayor and City Commission
authorize the Administration to increase the current standing order to Tropical Tents Inc., to
allow the Miami Beach Golf Club to continue to operate temporary golf cart storage and
charging facility until such time the new facility is constructed.
JMG:RCM:KS
T:~AGENDA~2005\Jul0605\Consent\Tropical Tent_Comm. Memo 7 6 05.doc