2000-24137 RESO Revised
: '
RESOLUTION NO: 2000-24137 (REVISED)
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND THE CITY CLERK TO
EXECUTE AMENDMENT NO. 4 TO THE CONCESSION
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH
AND PENROD BROTHERS, INC. FOR RENTAL OF
EQUIPMENT WITH FOOD AND BEVERAGE SERVICE AT
PIER PARK, OCEANFRONT PARK, AND LUMMUS PARK;
FURTHER WAIVING, BY 517THS VOTE, THE
COMPETITIVE BIDDING REQUIREMENT TO ALLOW
PENROD BROTHERS, PURSUANT TO THIS AMENDMENT
NO.4, TO OPERATE A PILOT CONCESSION PROGRAM AT
NORTH SHORE OPEN SP ACE PARK AND THE BEACH
AREA ADJACENT TO OCEAN TERRACE, FINDING SUCH
WAIVER TO BE IN THE BEST INTEREST OF THE CITY
WHEREAS, on October 2, 1985, the Mayor and City Commission adopted Resolution
No. 85-18222, approving a Concession Agreement, dated November 7,1985, between the City and
Penrod Brothers for the rental of beach equipment, water recreation equipment and food and
beverage service at Pier Park, Oceanfront Park, and Lummus Park; and
WHEREAS, on July 23, 1986, the Mayor and City Commission adopted Resolution
No. 86-18539-A, approving Amendment No.1 to the Concession Agreement, dated August 13,
1986; and
WHEREAS, on September 3,1986, the Mayor and City Commission adopted Resolution
No. 85-18571, approving Amendment No.2 to the Concession Agreement, dated September 4,
1986; and
WHEREAS, on April 20, 1988, the Mayor and City Commission adopted Resolution
No. 85-19223, approving Amendment No, 3 to the Concession Agreement, dated April 22, 1988; and
WHEREAS, said Concession Agreement, as amended, is scheduled to expire on
November 4, 2000; and
WHEREAS, on May 10, 2000, the Administration recommended, and the Mayor and City
Commission concurred, that the issuance of a new Request for Proposals (RFP) for the future
operation and management ofbeachfront concessions be referred to a Joint Meeting of the Land Use
and Development Committee and Finance/Citywide Projects Committee; and
WHEREAS, on September 21, 2000, at the Joint Meeting of the Land Use and Development
Committee and Finance/Citywide Projects Committee it was recommended that the Administration
negotiate a one year extension with Penrod Brothers while the proposed Rules and Regulations for
Beachfront Concession Operations are being considered by the State of Florida, community meetings
with interested parties are held, and a new RFP is finalized; and
WHEREAS, the Land Use and Development Committee and Finance/Citywide Projects
Committee further recommended that, as part of the negotiations, consideration be given to adopting
a revenue sharing formula which would provide additional income to the City, and the possible
inclusion of a Pilot Concession Program to establish the feasibility of servicing the beaches east of
North Shore Open Space Park and Ocean Terrace; and
WHEREAS, the Administration and Penrod Brothers have negotiated Amendment No.4
to the Concession Agreement, which includes provisions for a one year extension, beginning on
November 5, 2000, and ending on November 4,2001; an increase to the City's revenue from 10%
of gross revenues, to 15% of gross revenues; an increase to the rates permitted for the rental of
lounge chairs from $5.00 per chair, to a maximum of$10 per chair, from November through May;
and the addition of a Pilot Beach Concession Program to service the beaches east of North Shore
Open Space Park and Ocean Terrace.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and City Clerk are
authorized to execute the attached Amendment No.4 to the Concession Agreement between the City
of Miami Beach and Penrod Brothers, Inc. for the rental of beach equipment, water recreation
equipment, and food and beverage service at Pier Park, Oceanfront Park, and Lummus Park; further
waiving, by 5/7ths vote, the competitive bidding requirement to allow Penrods, pursuant to this
Amendment No.4, to operate a Pilot Concession Program at North Shore Open Space Park and the
beach area adjacent to Ocean Terrace, finding such waiver to be in the best interest of the City.
PASSED AND ADOPTED THIS 18th day of October
,2000.
Attest:
f;J
MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
k~f~
CITY CLERK
JMG:CMC:JD:rd
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F:\DDHP\$ALLIASSE1iBE C P _2000\PEN~2.RES 10/12/00.2
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miaml-beach.ftus
L.T.C. No. L 3 ! - 2000
LETTER TO COMMISSION
October 31, 2000
TO:
Mayor Neisen 0, Kasdin and
Members of the City Commission
Jorge M. Gonzalez '\. I ~
City Manager 'Ij <Y~ 0
SUBJECT: Clarification and Correction of October 18, 2000 City Commission Agenda Item
R-7-N
FROM:
On October 18, 2000, the City Commission approved item R-7 -N which created a fourth amendment
to the existing Concession Agreement between the City of Miami Beach and Penrod Brothers, Inc.
Part of said amendment included the operation of a Pilot Program at North Shore Open Space Park
(78th Street-87th Terrace),
As a point of clarification, the Pilot Program not only encompassed the North Shore Open Space
Park area, but also included the beach area adjacent to Ocean Terrace (73rd-75th Street).
This LTC shall serve as notice to the City Commission of the Administration's intent to clarify the
aforementioned by correcting Commission Memorandum No. 806-00, Resolution 2000-24137 and
Amendment No.4 to the Concession Agreement to include the beach area adjacent to Ocean Terrace
as part of the Pilot Program,
JMG:C~C:JD:r1r ~
cc: Robert Parcher, City Clerk
Jose Damien, Asset Manager
UDDHPISALLIASSETlBEACHFRN\PUBLlCIRFP _2000IPENROD.L TC
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.mlami-beach.f1.us
COMMISSION MEMORANDUM NO. 806-00 (REVISED)
TO:
Mayor Neisen Kasdin and
Members ofthe City Commission
DATE: October 18, 2000
FROM: Jorge M. Gonzalez
City Manager
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
THE CITY CLERK TO EXECUTE AMENDMENT NO. 4 TO THE
CONCESSION AGREEMENT BETWEEN THE CITY OF MIAMI BEACH
AND PENROD BROTHERS, INC. FOR RENTAL OF EQUIPMENT WITH
FOOD AND BEVERAGE SERVICE AT PIER PARK, OCEANFRONT PARK,
AND LUMMUS PARK; FURTHER WAIVING, BY S!7THS VOTE, THE
COMPETITIVE BIDDING REQUIREMENT TO ALLOW PENROD
BROTHERS, PURSUANT TO THIS AMENDMENT NO.4, TO OPERATE A
PILOT CONCESSION PROGRAM AT NORTH SHORE OPEN SPACE
PARK AND THE BEACH AREA ADJACENT TO OCEAN TERRACE,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
On November 7, 1985, the Mayor and City Commission adopted Resolution No. 85-18222,
approving a Concession Agreement between the City of Miami Beach and Penrod Brothers, Inc.
(Penrod Brothers) for the operation and management of beach front concessions, including rental of
beach equipment, water recreation equipment, and food and beverage service at Pier Park,
Oceanfront Park, and Lummus Park.
The Concession Agreement which was subsequently amended on August 13, 1986, via Resolution
No. 86-18539 (Amendment No.1), on September 4, 1986, via Resolution No. 85-18571
(Amendment No.2), and April 20, 1988, via Resolution No. 88-19223 (Amendment No.3), is
scheduled to expire on November 4, 2000.
On May 10, 2000, the Administration recommended that the Mayor and City Commission refer the
matter of issuance of a new Request for Proposals (RFP) for the operation and management of the
respective beachfront concessions to a joint meeting of Land Use and Development Committee and
Finance/Citywide Projects Committee (Joint Committee). The Mayor and City Commission
AGENDA ITEM R-7-N REVISED
DATE 10/18/00
concurred and the matter was so referred. On September 21, 2000, the Joint Committee
recommended that the Administration negotiate a one year extension with Penrod Brothers while the
Rules and Regulations for Beachfront Concession Operations (Rules and Regulations) are being
considered by the State of Florida, community meetings with interested parties are held, and a new
RFP is finalized. As part of the negotiations the Joint Committee asked that consideration be given
to a revenue sharing formula, which would provide additional income to the City, the possible
inclusion of a pilot concession program to establish the feasibility of servicing the beaches east of
North Shore Open Space Park, and potentially consider the inclusion of maintenance service to the
restroom facilities in the parks,. As to the latter, the Administration and Penrod Brothers agreed that
the issue of restroom facility maintenance should be addressed in the future RFP, and as such it was
not included in the amendment.
The proposed extension was based on the following recommended time line:
Conclusion of Rules and Regulations issues with the State of Florida
City Commission approval of Rules and Regulations
Meetings with community organizations/interested parties
Issuance of new RFP
Receipt of Proposals
Evaluation of Proposals
Proposer selected by City Commission
Negotiation of Concession Agreement
A ward of Concession Agreement by City Commission
New Concession Agreement begins
October 2000
November 2000
November/December 2000
December 'OO/January 2001
February/March 2001
April 2001
May 2001
July-September 2001
September 2001
November '01
Additionally, attached hereto is a copy of a letter received from Marlo Courtney, representing the
Ocean Drive Association. Mr. Courtney expresses support, on behalf of the Ocean Drive
Association, relative to the Administration's recommendation and proposed timetable to extend the
existing Concession Agreement for a one year period.
This Amendment No. 4 to the Concession Agreement, which was negotiated between the
Administration and Penrod Brothers addresses the following issues:
. Penrod Brothers shall be responsible for enhancing its beach cleaning and maintenance
efforts including manual sifting of sand, and removal of debris on a daily basis on all beaches
under the purview of this Concession Agreement.
. Penrod Brothers shall be responsible for enhancing its cleaning efforts in the dune area on
all beaches under the purview of this Concession Agreement, including manual removal of
debris on a daily basis, in accordance with, and as may be permitted by Federal, State,
County, and municipal law.
. Prices charged by Penrod Brothers to patrons for the rental of beach (lounge) chairs may be
increased from five dollars ($5.00) per chair per day, to a maximum often dollars ($10.00)
per chair per day for the months from November through May, which may include other
items such as a beach towel, which is now charged for separately.
. Penrod Brothers will operate a pilot beach concession program, subject to the same terms and
conditions of the existing Concession Agreement, as amended, at North Shore Open Space
Park and the beach area adjacent to Ocean Terrace on weekends and holidays, and may
consider expanding such services to week days, as warranted, The approval of said pilot
program will require a 5/7ths vote of the Mayor and City Commission since it is in an area
not specifically identified in the existing Concession Agreement, as amended.
. The percentage of gross revenues payable to the City by Penrod Brothers will increase from
ten percent (10%) to fifteen percent (15%). Below please find a schedule of the revenues
to the City for the prior eleven (11) month period and the projected revenues to City under
the proposed amendment. It is estimated that as a result of the increase in percentage of
gross to the City, coupled with the increase in chair rental charges, approximately $126,517
will be generated as additional revenue to the City, for an eleven (11) month period.
Period FY 99-00 (II months) FY 00-01 (II months) Estimated
additional
REVENUE REPORTED CITY REVENUE PROJECTED CITY Revenue to the
BY PENROD SHARE FOR PENROD SHARE City in
FY 00-01
Chairs Only Overall 10%of Chairs Only Overall 15%of (II months)
Gross Gross
10/99 $ 38,089 $ 75,210 $ 7,521 $ 38,089 $ 75,210 $ 11,281 $ 3,760
11/99-5/00 $ 581,448 $ 1,040,728 $ 104,072 $930,316 $ 1,389,597 $ 208,440 $ 104,367
6/00-8/00 $ 184,223 $ 367,808 $ 36,781 $ 184,223 $ 367,808 $ 55,171 $ 18,390
I Total II $ 803,760 I $ 1,483,746 I $ 148,3741 I $ 1,268,918 I $ 1,832,615 I $ 274,89211 $ 126,5171
Chair revenue numbers are based on current the ratio of overall"rentals" which includes "chairs" and "umbrellas." The
percentage of "chair" rentals ranges from approximately 70% to 86% depending on the month and averages 79% yearly.
A 20% dilution factor has been assumed in projection ofFY 00-01, for the period of 11/99-5/00 "Chairs Only" revenue.
. The term of the Concession Agreement, as amended, shan be extended for a one (1) year
period beginning on November 5, 2000, and ending on November 4, 2001.
. An other terms and conditions of the Concession Agreement, as amended, shall remain in
fun force an effect.
The Administration recommends that the Mayor and City Commission approve Amendment No.4
to the Concession Agreement and waive, by 5/7ths vote, the competitive bidding requirement to
anow Penrod Brothers to operate a Pilot Concession Program at North Shore Open Space Park as
it would be in the best interest of the City. The term extension contained therein will provide an
opportunity to finalize the Rules and Regulations for Beachfront Concession Operations, and confer
with, and seek input from, the Ocean Drive Association and other interested parties with regard to
the new RFP, while ensuring the non-interruption of services to beach patrons, and provide for a
short term pilot program to establish the feasibility of a long term beach concession program at North
Shore Open Space Park and the beach area adjacent to Ocean Terrace.
JMG:CMC:JD:rd
F:\DDHP\$ALL IASSETlBEACHFRN\PUBLlC\RFP _ 2000IPENROD2.MEM 10/12/00.2
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Tel. 30~ ~31-4411
Ocran Drive Association
804 Oce8ll Drive
Miami Beach, Florida 33139
Fax 305 673-3106
September 21, 2000
Christina C ucrvo
Assistant City Manager
City of Miami Beach
1700 Conventio.n C enter Drive
Miami Beach, Florida 33139
Re: Beach Concession Reouests For Propos~ls
Dear Christina.
Thank you for forwarding me the administration recommendations and the timetable regarding the
RFP process for the Lummus Park Beach concessions,
I believe that the two outlined recommendations in the manager's memorandum to the members of
the Land Use and Development Committee. and the subs~uent timetable we developed are
acceptable, Please make sure that the administrationi makes it', best efforts to stay with this time
~~ .
The Ocean Drive Association recogniZl'S the importance of this RFP and will be very involved in
all aspects o[lhis very significant issue Thank you [or your assistance,
,
,
\,
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AMENDMENT No.4 TO CONCESSION AGREEMENT
This Fourth Amendment to the Concession Agreement, dated November 27,1985, for the
operation and management of beachfront concessions, including rental of beach equipment, water
recreation equipment and food and beverage service at Pier Park, Oceanfront Park, and Lummus
Park, between the CITY OF MIAMI BEACH (City), a Florida Municipal Corporation, having its
principal office at 1700 Convention Center Drive, Miami Beach, Florida, and PENROD
BROTHERS, INC. (Penrod Brothers), having its principal office at One Ocean Drive, Miami Beach,
Florida, is entered into this 1st day of November, 2000.
WITNESSETH
WHEREAS, on October 2, 1985, the Mayor and City Commission adopted Resolution
No. 85-18222, approving a Concession Agreement between the City and Penrod Brothers for the
rental of beach equipment, water recreation equipment and food and beverage service at Pier Park,
Oceanfront Park, and Lummus Park; and
WHEREAS, on July 23, 1986, the Mayor and City Commission adopted Resolution
No. 86-18539-A, approving Amendment No.1 to the Concession Agreement, dated August 13,
1986; and
WHEREAS, on September 3,1986, the Mayor and City Commission adopted Resolution
No, 85-18571, approving Amendment No.2 to the Concession Agreement, dated September 4,
1986; and
WHEREAS, on April 20,: 1988, the Mayor and City Commission adopted. Resolution
No. 85-19223, approving Amendment No.3 to the Concession Agreement, dated Apri122, 1988; and
WHEREAS, said Concession Agreement is scheduled to expire on November 4, 2000, and
as such the City and Penrod Brothers have agreed to extend the Concession Agreement, for a one
(1) year period.
NOW, THEREFORE, the City and Penrod Brothers mutually agree that the Concession
Agreement, as amended, be further amended as follows:
1. The Concession Agreement shall be extended for a one (1) year period beginning on
November 5,2000, and ending on November 4, 2001.
2. Penrod Brothers shall be responsible for enhancing its beach cleaning and maintenance
efforts, to include manual sifting of sand, and removal of debris on a daily basis on all
beaches under the purview of this Concession Agreement.
3. Penrod Brothers shall be responsible for enhancing its cleaning efforts in the dune area on
all beaches under the purview of this Concession Agreement, to include manual removal of
debris on a daily basis, in accordance with, and as may be permitted by, Federal, State,
County, and municipal law.
\
i
4.
Prices charged by Penrod Brothers to patrons for the rental of beach (lounge) chairs may be
increased from five dollars ($5.00) per chair, per day, to a maximum often dollars ($10,00)
per chair, per day, but only for the months from November through May; otherwise, such
lounge chair rental rates (i,e. for the months from June through October) shall remain at five
dollars ($5.00) per chair, per day.
5. The percentage of gross revenues payable to the City by Penrod Brothers, as defined in
Section 16, entitled "RENTAL", of the Concession Agreement, will increase from ten
percent (10%), to fifteen percent (15%).
6. Penrod Brothers will operate a Pilot Beach Concession Program, subject to the same terms
and conditions of the existing Concession Agreement, as amended, at North Shore Open
Space Park and the beach area adjacent to Ocean Terrace, on weekends and holidays,
Expansion of such services to week days may be considered, if warranted, when requested
by Penrod Brothers and upon the prior written consent by the City Manager.
7. All other terms and conditions of the Concession Agreement, as amended, shall remain in
full force an effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No.4 to the
Concession Agreement to be executed by their duly authorized officials on the day first above
indicated.
ATTEST:
CITY OF MIAMI BEACH, FLORIDA
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
1U ~ ~DBROTHERS,INC.
c Attomey 0a1Il
~~VOR
~d' p~
CITY CLERK
~\A.A-. ~-'-~ ~e..~
Authorized Signatory
~f\~~ ?':::N~\) ~~...>
Name and Title of Signatory
JMG:CMC:JD:rd
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