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HomeMy WebLinkAbout2005-26042 Reso RESOLUTION NO. 2005-26042 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONCESSION AGREEMENT BY AND BETWEEN THE CITY AND BROTHER'S VENDING, INC. FOR THE OPERATION OF VENDING MACHINE CONCESSIONS AT VARIOUS LOCATIONS ON CITY-OWNED PROPERTIES, FOR A TERM OF TWO (2) YEARS, WITH THREE (3) ONE-YEAR RENEWAL OPTIONS, EACH AT THE CITY'S SOLE DISCRETION, AND SUBJECT TO A THIRTY (30) DAY TERMINATION FOR CONVENIENCE PROVISION, AT THE CITY'S SOLE DISCRETION WHEREAS, on February 23, 2005, the Mayor and City Commission authorized the Administration to issue Request for Proposals No. 09/04-05 to solicit proposals for the operation of vending machine concessions at various locations on City-owned properties and facilities (the RFP); and WHEREAS, on February 23, 2005, said RFP was issued, responses were received and evaluated, and recommendations were forwarded to the Mayor and City Commission; and WHEREAS, on July 27, 2005, the Mayor and City Commission adopted Resolution No. 2005-25966, authorizing the Administration to enter into negotiations with Brother's Vending, Inc. (Concessionaire), as the successful proposer, for the operation of said vending machine concessions; and WHEREAS, the Administration has successfully negotiated the foregoing Concession Agreement with Brother's Vending, Inc., for an initial two (2) year term, said Agreement commencing on November 1, 2005, and expiring on October 31, 2007, with three (3) additional one year renewal options, each at the City's sole discretion. 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 of the City of Miami Beach, Florida, hereby authorize the Mayor and City Clerk to execute a Concession Agreement by and between the City and Brother's Vending, Inc. for the operation of vending machine concessions at various locations on City-owned properties, for a term of two (2) years, with three (3) one-year renewal options, each at the City's sole discretion, and subject to a thirty (30) day termination for convenience provision, at the City's sole discretion. PASSED ~nd ADOPTED this 19th day of October:, ATTEST: ~.~p~ CITY.CLERK Robert Parcher JMG:RCM:JO:rlr F:\DDHP\$ALL\ASSEn VENDI NG\BrothersVendingRES.doc CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY ~ Condensed Title: Resolution Approving and Authorizing the Mayor and City Clerk to Execute a Concession Agreement by and between the City and Brother's Vending, Inc. for the operation of Vending Machine Concessions at various locations on City-owned Properties, for a term of Two (2) Years, with Three (3) One-Year Renewal Options, each at the City's Sole Discretion, and Subject to a Thirty (30) Day Termination for Convenience Provision, at the City's Sole Discretion, Issue: Shall the Commission Adopt the Resolution? Item Summary/Recommendation: On February 23, 2005, the Mayor and City Commission authorized the Administration to issue Request for Proposals No. 09/04-05 to solicit proposals for the operation of vending machine concessions at various locations on City-owned properties and facilities (the RFP). On February 23, 2005, said RFP was issued, responses were received and evaluated, and recommendations were forwarded to the Mayor and City Commission. On July 27,2005, the Mayor and City Commission adopted Resolution No. 2005-25966, authorizing the Administration to enter into negotiations with Brother's Vending, Inc. (Concessionaire), as the successful proposer, for the operation of said vending machine concessions, The Administration has successfully negotiated the foregoing Concession Agreement wi~h Brother's Vending, Inc., for an initial two (2) year term, said Agreement commencing on November 1, 2005, and expiring on October 31,2007, with three (3) additional one year renewal options, each at the City's sole discretion, and subject to a thirty (30) day termination for convenience provision, at the City's sole discretion. The current vending machine contract generates annual revenues to the City of approximately $20,000, The proposed Agreement provides a minimum annual guarantee of $38,400, or 20% of gross receipts, whichever is greater, representing an approximate 100% increase in annual revenue to the City, over and above the current contract. The Administration recommends adoption of the Resolution. Advisory Board Recommendation: I N/A Financial Information: Amount Account Approved Source of Funds: 1 $0.00 No charge to the City. Vendor will pay fees to the City. I I 2 Finance Dept. Total Ci Clerk's Office Le islative T"rackin Joe Damien, ext. 6727 Si n-Offs: DepartrnentDirector Assistant City Manager/CFO JM JD F:\DDHP\$ALL AGENDA ITEM R1 K:.. DATE IO-19-0~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Date: October 19,2005 Members of the City Commission Jorge M. Gonzalez ~ J./"'~ City Manager ~ c---~r --jf A RESOLUTION OF THE MAYOR AND CITY- t6MMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONCESSION AGREEMENT BY AND BETWEEN THE CITY AND BROTHER'S VENDING, INC. FOR THE OPERATION OF VENDING MACHINE CONCESSIONS AT VARIOUS LOCATIONS ON CITY-OWNED PROPERTIES, FOR A TERM OF TWO (2) YEARS, WITH THREE (3) ONE-YEAR RENEWAL OPTIONS, EACH AT THE CITY'S SOLE DISCRETION, AND SUBJECT TO A THIRTY (30) DAY TERMINATION FOR CONVENIENCE PROVISION, AT THE CITY'S SOLE DISCRETION ADMINISTRATIVE RECOMMENDATION Adopt the Resolution. ANAL YSIS On February 23, 2005, the Mayor and City Commission authorized the Administration to issue Request for Proposals No. 09/04-05 to solicit proposals for the operation of vending machine concessions at various locations on City-owned properties and facilities (the RFP). On February 23,2005, said RFP was issued, responses were received and evaluated, and recommendations were forwarded to the Mayor and City Commission. On July 27,2005, the Mayor and City Commission adopted Resolution No. 2005-25966, authorizing the Administration to enter into negotiations with Brother's Vending, Inc. (Concessionaire), as the successful proposer, for the operation of said vending machine concessions. The Administration has successfully negotiated a Concession Agreement with Brother's Vending, Inc., a brief summary of the safient provisions of which are outlined below: Term: Initial Term: two (2) years, commencing November 1,2005, and expiring on October 31,2007, and three (3) additional one (1) year renewal options, each at the City's sole discretion. Termination for Convenience: The Agreement further provides the City with a thirty (30) day termination for convenience provision that may be exercised, at its sole discretion, during any term. Financial Remuneration: Minimum Guarantee: Upon execution of the Agreement, and on November 1 st of any subsequent contract year, Concessionaire shall pay to the City an annual minimum guaranteed amount of thirty eight thousand four hundred dollars ($38,400), plus applicable sales and use taxes. Annual Increases: Commencing with the second contract year, said Minimum Guarantee shall be automatically increased annually, by a percentage equivalent to the annual increase in the Consumer Price Index. Percentage of Gross: In the event that the amount equal to twenty percent (200.10) of Concessionaire's annual Gross Receipts (Percentage of Gross) exceeds the Minimum Guarantee, then Concessionaire shall also pay to the City the difference between the amount of the Percentage of Gross and the Minimum Guaranteed amount. Initial Contract Year Bonus: Concessionaire shall pay to the City a one-time "Bonus" in the amount of Three Thousand ($3,000) Dollars upon execution of this agreement. Non-Cash Remuneration: In additional to the aforementioned remuneration, Concessionaire shall also provide the City with products, and/or services (which may include, but not be limited to use of food trailers and vehicles, truck-back advertising, etc.), with a verifiable cumulative retail value of no less that sixty-eight thousand dollars ($68,000.00). Determination of type of products and/or services to be included will be at the sole discretion of the City. Comparison to Current Vending Machine Contract: Finance Department records indicate that, on average, the currently existing vending machine contract generates annual revenues to the City of approximately $20,000. The proposed Concession Agreement provides for a minimum annual guaranteed amount of $38,400, or 200.10 of gross receipts, whichever is greater, representing an approximate 100% increase in annual revenue to the City, over and above the current contract. Utilities: City shall provide and maintain electrical service and outlets at all locations where currently existing. Any costs for new electrical service and outlets requested by Concessionaire will be borne by Concessionaire. Proposed VendinQ Machine Locations: Initially proposed vending machine locations were based on the location of existing vending machines (as provided in the existing vending machine contract). Additional locations were considered based on discussions with Brother's Vending, and from information provided by applicable City Department's (e.g. Parks and Recreation, Parking, Property Management, etc.) that have demonstrated a need or desire for vending machines to serve either client and/or employee demand. Based on the current contract, there are approximately sixty (60) vending machines located City-wide. The proposed Concession Agreement would allow for up to 102 vending machines (see Exhibit 2.0 of attached Agreement), subject to City approval. The Agreement further provides for a greater variety of products to be offered, including healthier alternatives (both in beverage and snack products), that the City may select at its discretion. The Administration recommends that the Mayor and City Commission approve the attached resolution hereby authorizing the Mayor and City Clerk to execute a Concession Agreement by and between the City and Brother's Vending, Inc. for the operation of vending machine concessions at various locations on City-owned properties, for an initial two (2) year term, and three (3) one-year renewaloptio s, each at the City's sole discretion, with all terms (including the initial term), subject to a thirty (3 ay termination for convenience provision at the City's sole discretion. :JD~ F:\DDHP\$ALL \ASSET\VENDING\BrothersVendingMEM.doc