On July 25, 2018, the Mayor and City Commission adopted Resolution No. 2018-30399, approving the award of Request for Proposals ("RFP") No. 2018- 166-WG for Valet Parking Services on City-owned property (the "RFP"). On November 26, 2018, the City and Concessionaire executed an Agreement with First Class Parking Systems, LLC (see attached Exhibit “A”) with respect to the Valet Parking Services at the Fillmore, at the Jackie Gleason Theater of the Preforming Arts, Miami Beach Convention Center, and other City properties, as may be required.
The term of the Agreement included an initial term of one (1) year, commencing on November 1, 2018, and ending on October 31, 2019, with four (4) additional one-year renewal terms, subject to approval of the City Manager.
On November 1, 2019, the City and Concessionaire executed Amendment No. 1 to the Agreement (see attached Exhibit “B”), approving the first one-year renewal term, beginning on November 1, 2019 and ending on October 31, 2020, modifying the financial terms (the Agreement and Amendment No. 1 shall be collectively referred to herein as the "Agreement").
On September 25, 2020, the City and Concessionaire executed Amendment No. 2 to the Agreement (see attached Exhibit “C”), to correct the commencement date of the Agreement to reflect October 1, 2018 and accordingly correct the contract year to start October 1st and go through September 30th and also to clarify Section 3.2.3 of the Agreement to clearly reflect the parties' intent.
Due to the impacts of the COVID-19 pandemic, the parties availed themselves of the force majeure provision of the Agreement, and agreed to suspend Services under the Agreement, effective April 1, 2020 ("Suspension Date"), until the effective date in which the Parking Department Director advises, in writing, that Services may resume ("Suspension Period"). This agreement was memorialized in a letter agreement, dated March 27, 2020 (see attached Exhibit “D”).
Amendment No. 2 also reflects that during the Suspension Period, the Venues may require valet services, on a demand basis ("Temporary Services"), and the undersigned parties agreed that Concessionaire would exclusively provide such valet services from the Effective Date of Amendment No. 2 (September 25, 2020), and continuing through and including the expiration date of the Suspension Period or January 31, 2021, whichever occurs first (Temporary Services Period).
Amendment No. 2 also amended the agreement to reflect that during the Temporary Services Period, Concessionaire would pay the City a Concession Fee of twelve percent (12%) of the total monthly Gross Receipts (as defined in subsection 4.4) for all transactions (“Temporary Services Period Concession Fee”), payable every month by no later than the fifteenth (15th) day of the corresponding month; and that during the Temporary Services Period, the Concession Fees set forth in Section 3.2 (including the Minimum Guarantee of $17,900 a month, the Excess Transaction Fee and Percentage of Gross Receipts) would be abated and replaced with the Temporary Services Period Concession Fee.
In order to address the material reduction in revenues, directly related to the COVID-19 pandemic, the parties wish to extend the Temporary Services Period set to expire on January 31, 2021 until September 30, 2021 or until such time as the Convention Center bookings resume operations at the Pre-Pandemic booking levels, whichever occurs first, and have memorialized this extension in the proposed Amendment No. 3.