On July 26, 2017, the Mayor and City Commission adopted Resolution Number 2017-29936, accepting the written recommendation of the City Manager and waiving, by 5/7th vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City; and approving, in substantial form, a one (1) year pilot agreement between the City and Van Daalen Tennis, LLC. for programming at the City’s Miami Beach Tennis Center.
On August 30, 2017, the City and Van Daalen Tennis, LLC. (“Contractor”) executed the One (1) Year Pilot Agreement (the “Agreement”) to Provide Tennis Programming at the City’s North Shore Tennis Center, now known as the “Miami Beach Tennis Center” (the “Center”).
At the April 11, 2018 City Commission Meeting, a discussion regarding a term extension of 6-months for Van Daalen Tennis, LLC. to provide programming, following the completion of the scheduled construction projects at the “Center” was referred to the Finance and Citywide Projects Committee (“FCWPC”).
On April 11, 2018, the Mayor and City Commission adopted Resolution No. 2018-30279, changing the name of the Center from the North Shore Tennis Center to the Miami Beach Tennis Center; and
On June 6, 2018, the Mayor and City Commission adopted Resolution No. 2018-30330, accepting the recommendation of the FCWPC’s meeting on May 18, 2018 meeting approving Amendment No. 1 to the Agreement. The Amendment stated the following:
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Acknowledging the term extension of six months at the completion of the scheduled construction projects at the Miami Beach Tennis Center for Van Daalen Tennis, LLC;
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Acknowledging the Contractor’s education compact fund contribution, in an amount of $500.00 (3) providing for the addition of language related to identifying the center as the Miami Beach Tennis Center;
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Adding language addressing light fees and club baskets;
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Adding language regarding payment to Contractor for the City’s summer sports specialty camp;
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Updating the tennis software provider; and
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Providing the City with utilization of courts for City produced tennis related special events and/or City sponsored special events to be added to the scope of the Agreement.
At the April 10, 2019 City Commission meeting, City staff updated the City Commission with respect to the opening of the Center, which is slated to occur during late Spring or Summer of 2020. Prior to the end of the term, the Administration would be bringing forward a Procurement item so that the Agreement may be competitively bid.
Since the Contractor took over the programming at the Center, both programming and merchandise revenues and participation numbers have seen a steady increase. Pursuant to the Agreement, Contractor is paid based upon the percentage of gross programming revenues earned at the Center. As a result of the programming growth, an audit to the Agreement was required, increasing the programming fee and management fee from $500,000 to an amount not to exceed $750,000 per year during the term of the Agreement.
At the April 10, 2019 City Commission Meeting, Resolution No. 2019-30776 was passed approving Amendment No. 2 to the pilot agreement to adjust the Contractor’s programming and management fee from $500,000.00 to a not to exceed amount of $750,000.00 per year during the term of the agreement to meet the programming demands.
At the July 19, 2019 Finance and Citywide Projects Committee meeting, a motion was made to further amend the Contractor’s Pilot Agreement, providing programming at the Center, by shifting the responsibility of operating and personnel cost to the Contractor.
Currently, the operating and personnel cost paid from the Parks and Recreation Department budget is funded by the General Fund. By having the Contractor cover the operating and personnel costs, it will yield an annual savings to the City in the approximate amount of $182,000.00.
Once negotiated staff will return to the full Commission for approval of the proposed amendment.