2008-26767 Reso Inc.RESOLUTION NO. 2008-26767
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 SECOND AMENDMENT TO THE CONCESSION
AGREEMENT WITH FIRST CLASS PARKING, INC., INCREASING THE VALET
PARKING FEE FROM $15.00 TO $20.00 FOR SPECIFIED EVENTS.
WHEREAS, on January 17, 2007, the Mayor and Commission approved a Consent to
Assignment from Gold Star Parking Systems, Inc. to First Class Parking, Inc. for the Concession
Agreement for Valet parking Services for the Miami Beach Convention Center, the Fillmore/Jackie
Gleason Theater, and other City property, as required; and
WHEREAS, the Preferred Parking Lot is the most convenient and "preferred" self-parking
facility in the area, with aself-parking rate of $15.00, and the current valet parking rate is also
$15.00; and
WHEREAS, valet parking is the highest level of service in the menu of options for a
customer as it affords front door service; a $20.00 valet parking fee would establish a tiered parking
rate structure commensurate with the level of service; and
WHEREAS, First Class Parking, Inc. (Concessionaire) is requesting an increase in the
valet parking fee from $15 to $20 for the following specified events:
Antique Show;
Jewelry Show;
NMMA International Boat Show;
Graphics of the Americas;
Home Design (March);
Home Design (September);
Sea Trade Cruise Shipping;
Art Basel Miami Beach: and
WHEREAS, the aforementioned events are high impact events that have a higher demand
for valet parking service due to varying factors including, but not limited to, event attendance; limited
self-parking inventory (directly or indirectly related to the event); attendee demographics; and
weather; and
WHEREAS, the following are valet parking rates at comparable venues in the region:
• Carnival PAC: $20
• Broward Center for the Performing Arts: $20
• Kravitz Center (West Palm Beach): $20
• James L. Knight Center (Miami Convention Center): $30
• American Airlines Arena: $35
• Orlando PAC: $25
• Tampa Bay PAC: $17; and
WHEREAS, the Administration has negotiated a 60%/40% split of the incremental $5.00
increase which equates to $3.00 for First Class Parking and $2.00 for the City, per vehicle, and the
number of vehicles per event is calculated by the actual number of vehicles for each event in the
previous year; and
WHEREAS, the agreed upon revenue sharing would equate to a split of the revenues, in
the amount of $27,600 (60%) for First Class Parking, and $18,400 for the City; and
WHEREAS, a Second Amendment to the Concession Agreement is necessary in orderto
effectuate the proposed changes.
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 approve and authorize the Mayor and City Clerk to execute a Second Amendment to the
Concession Agreementwith First Class Parking, Inc., increasing the valet parking valet parking fee
from $15.00 to $20.00 for specified events.
PASSED and ADOPTED this 13th day of February , 2008.
ATTEST:
~~~' a ~ `
Robert Percher, City Clerk M ti H. Bower; Mayor
7:\AGENDA\2008\February 13\Regular\FirstClassParkingrateamend.res.doc
APPROVED AS TO
FORM & LANGUAGE
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving, an amendment to the Concession Agreement with First Class Parking/Gold Star
Parking Inc. increasing the valet parking fee from $15.00 to $20.00 for specified events.
~uLCOme
mprove parking availability; enhance mobility throughout
Supporting Data (Surveys, Environmental Scan, etc.): Available parking is ranked No.S by residents as
one of the changes that will make Miami Beach a better place to live, work, play or visit; 77% of residents rated
availability of parking across Miami Beach as too little or much too little.
Issue:
Should the City Commission adopt the Resolution?
Item Summary/Recommendation:
On January 17, 2007, the Mayor and Commission approved the Consent to Assignment from Gold Star
Parking Systems, Inc. to First Class Parking, Inc. for the valet parking services concession agreement. The
Preferred Parking Lot is the most convenient and "preferred" self-parking facility in the area with aself-parking
rate of $15.00. The current valet parking rate is also $15.00. Valet parking is the highest level of service in the
menu of options for a customer as it affords front door service. First Class Parking, Inc. (Concessionaire) is
requesting an increase in the valet parking fee from $15 to $20 for the following specified events: Antique
Show; Jewelry Show; NMMA International Boat Show; Graphics of the Americas; Home Design (March); Home
Design (September); Sea Trade Cruise Shipping; Art Basel Miami Beach. The aforementioned events are high
impact events that have a higher demand for valet parking service due to varying factors, including but not
limited to event attendance; limited self-parking inventory (directly or indirectly related to the event); attendee
demographics; and weather. The following are valet parking rates at comparable venues in the region:
Carnival PAC: $20; Broward Center for the Performing Arts: $20; Kravitz Center (West Palm Beach): $20;
James L. Knight Center (Miami Convention Center): $30; American Airlines Arena: $35; Orlando PAC: $25;
Tampa Bay PAC: $17
Financial Return to the City:
The Administration has negotiated a 60%/40% split of the incremental $5.00 increase which equates to $3.00
for First Class Parking and $2.00 for the City per vehicle. There were a total of 9,200 vehicles serviced by First
Class Parking in the previous year for these events equating to a total of $46,000 (9,200 x $5.00) in
incremental revenue. This would equate to a revenue share of $27,600 (60%) for First Class Parking and
$18,400 for the City. The Concessionaire has agreed to the amendments in the agreement necessary to
implement the rate change
Adopt the Resolution.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account c Approved
Funds: #
OBPI Total.''
Financial Im act Summa
City Clerk's Office I_PaiclativP Trarkinn•
Saul Frances, Parking Director
Sign-Ofil's: Departrxtant
Director '< Assistant C'#y,"Manager Gity Manager
SF RC
T:WGENDA\2008\feb1308\COnsentlFirstClassParkingAmendsum.doc /] O
~~~{ ~ ~ ~~~ AGENDA ITEM R `
f j! 1 DAtE Z'(3'~
m MIAMIBEACH
Cify of Miami Beach, 1700 Convention Center Drive, Miomi Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Managers
DATE: February 13, 2008 OV
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AN AMENDMENT TO THE
CONCESSION AGREEMENT WITH FIRST CLASS PARKING, INCJGOLD STAR
PARKING, INC. INCREASING THE VALET PARKING FEE FROM $15.00 TO
$20.00 FOR SPECIFIED EVENTS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOMES SUPPORTED
Improve parking availability; enhance mobilitythroughoutthe City; improve The City's overall
financial health and maintain overall bond rating.
ANALYSIS
On January 17, 2007, the Mayor and Commission approved the Consent to Assignment
from Gold Star Parking Systems, Inc. to First Class Parking, Inc. for the valet parking
services concession agreement for the Miami Beach Convention Center; The
Fillmore/Jackie Gleason Theater, and other city property, as required.
The Preferred Parking Lot is the most convenient and "preferred" self-parking facility in the
area with aself-parking rate of $15.00. The current valet parking rate is also $15.00. Valet
parking is the highest level of service in the menu of options for a customer as it affords front
door service. A $20.00 valet parking fee would establish a tiered parking rate structure
commensurate with the level of service.
First Class Parking, Inc. (Concessionaire) is requesting an increase in the valet parking fee
from $15 to $20 for the following specified events:
• Antique Show
• Jewelry Show
• NMMA International Boat Show
• Graphics of the Americas
• Home Design (March)
• Home Design (September)
• Sea Trade Cruise Shipping
• Art Basel Miami Beach
The aforementioned events are high impact events that have a higher demand for valet
parking service due to varying factors, including but not limited to event attendance; limited
self-parking inventory (directlyor indirectly related to the event); attendee demographics; and
weather.
Valet Parking Fees for Comparable Venues:
The following are valet parking rates at comparable venues in the region:
Carnival PAC: $20
Broward Center for the Performing Arts: $20
Kravitz Center (West Palm Beach): $20
James L. Knight Center (Miami Convention Center): $30
American Airlines Arena: $35
Orlando PAC: $25
Tampa Bay PAC: $17
Financial Return to the City:
The Administration has negotiated a 60%/40% split of the incremental $5.00 increase which
equates to $3.00 for First Class Parking and $2.00 for the City per vehicle. The amount that
is paid to the City for each event is calculated in advance of the event by using the actual
numberof vehicles for each event in the previous year. The City reserves the right to audit
any event to monitor the numberof cars served and to determine if a variance or correction
is needed. Typically audits are completed in the larger events, such as Art Basel, for which
large numbers of cars are involved and more significant changes can occurfrom one yearto
the next.
There were a total of 9,200 vehicles serviced by First Class Parking in the previous year for
the identified events, which would equate to a total of $46,000 (9,200 x $5.00) in incremental
revenue. This would provide a revenue share of $27,600 (60%) for First Class Parking and
$18,400 for the City.
A second amendment to the Consent to Assignment/ConcessionAgreement is necessary in
order to effectuate these provisions. The following are the agreed upon amendments:
Agreement Section 6
The Concessionaire shall agree that the prices and fees charged for valet parking ("the valet
parking fee") shall not exceed $15.00 per vehicle with the exception of the following
specified events which shall have a valet parking fee not to exceed $20.00. The specified
events are: Antique Show, Jewelry Show, NMMA Boat Show, Graphics of the Americas,
Home Design (March), Home Design (September), Sea Trade Cruise/Shipping, and Art
Basel.
Agreement Section 7
The Concessionaire shall share the incremental $5.00 fee (from $15.00 to $20.00) per
vehicle, for the events specified herein, with the City on a 60%/40% basis, respectively. The
numberof vehicles per event shall be based on the actual valet parking transactions in the
previous year for each event. In addition, the City reserves the right to audit the numberof
transactions for any and all events to confirm that the current year's actual number of
transactions is comparable to the previous year's actual numberof transactions. If variances
exceed five percent (5%), a prorated credit shall be issued to the corresponding party. This
provision shall only apply to events that the City has audited and been able confirm the
actual number of transactions per event. It does not apply to any event that the City has not
audited. The numberof events audited is at the sole discretion of the City.
Advisory Board Recommendation:
The Transportation and Parking Committee endorsed this recommendation on Monday,
January 7, 2008.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the attached
resolution authorizing a second amendment to the Concession Agreement with First Class
Parking, Inc. amending the valet parking fee from $15.00 to $20.00 per vehicle for the
following specified events: Antique Show, Jewelry Show, NMMA International Boat Show,
Graphics of the Americas, Sea Trade, Home Design (March), Home Design (September),
,and Art Basel Miami Beach. Furthermore, amending the Agreement to reflect a
revised payment schedule based on a 60%/40% revenue share between the Concessionaire
and City, respectively, of the incremental $5.00 fee.
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