Separate from the Agreement, pursuant to Resolution No. 2015-29166, the City entered into an agreement with Boucher Brothers Miami Beach 21 & 46 ST, LLC, on December 17, 2015, as the highest ranked proposer, pursuant to Request for Proposals (RFP) 2015-205-WG, for the management and operation of the beachfront concessions at 21st and 46th Streets (21/46 Agreement). This agreement contains an initial term of approximately two (2) years, commencing December 26, 2015 and ending December 31, 2017, with three (3) additional renewal options for one (1) year each. The third and final renewal period is set to expire at the end of this year.
At the June 24, 2020 Commission meeting, the Administration submitted a request for approval to issue Request for Proposals (RFP) 2020-145-ND for the management and operation of the beachfront concessions at 21st and 46th Streets. The Mayor and City Commission discussed this matter and directed the Administration, in order to consolidate vendors and agreements related to the public beachfront concessions, to negotiate with Boucher Brothers to explore the possibility of incorporating the 21st and 46th Street locations into the Agreement which was recently extended for Lummus Park, Ocean Terrace, North Shore Open Space Park, South Pointe Park Beach and Allison Park.
The Administration negotiated in good faith with Boucher Brothers to incorporate the 21st & 46th Street concessions within the context of the existing Agreement.
The basic terms and conditions of the proposed Amendment No. 1 are outlined below.
Commencement Date: January 1, 2021
Minimum Guarantee (MG):
The annual MG paid by the Concessionaire shall increase from $122,000 to $200,000 annually and shall be in addition to the $1,200,000 currently payable under the Agreement. The increased MG shall be effective January 1, 2022 (one year following the Commencement Date) in order to provide time for beach operations and sales to recover following COVID-19.
Percentage of Gross (PG):
The PG paid by the Concessionaire for the 21/46 Agreement is currently 20.33% on revenues up to $600,000 annually, and 25% on revenues that exceed $600,000 annually. Effective upon the Commencement Date, the PG derived from the 21st and 46th Street locations shall align with the percentages contained in the Agreement as outlined below.
In order to provide time for beach operations and sales to recover following COVID-19, throughout the one (1) year period following the Commencement Date (calendar 2021), Concessionaire shall only pay the PG derived from the 21st and 46th Street locations, based on the applicable percentages, within thirty (30) days following the end of each month. Thereafter, effective January 1, 2022, the additional MG shall be paid in accordance with the terms of the Agreement (i.e. 50% January 1st and 50% July 1st), with a true-up payment at the end of the year.
Financial Contributions by Concessionaire:
· Concessionaire shall release its security deposit, contained in the 21/46 Agreement, of $20,833, to the City. The security deposit shall be used by the City for the purpose of hosting a beach event(s) for the benefit of Miami Beach residents, with the details for any such event(s) to be determined by the City, at its sole discretion.
· Provide an annual contribution of $5,000 to support Citywide beach related initiatives (i.e. seaweed removal, sanitation, marketing, etc.). This amount is in addition to the $30,000 already being donated to the City, pursuant to the terms of the Agreement, for scholarships and contributions to philanthropic organizations with an emphasis on marine and children related recipients, as well as environmental organizations and the City’s sea turtle initiative.
Benefits/ Services:
Concessionaire shall provide the following services at its sole expense:
· Offer such services, equipment and pricing for 21st & 46th Street, as proposed in Exhibit A (Equipment Rental & Pricing Schedule), attached hereto.
· Provide, within each Concession Area, the types and quantities of equipment, as proposed in Exhibit B (Equipment Inventory), attached hereto.
· Maintain, store, and have available for rent over 1,000 linear feet of ADA beach access Mobi-mat, or a comparable equivalent, for use during special events.
· Continually refill, during normal hours of operation, the public sunscreen dispensers with MB Miami Beach branded sunscreen, and report to the City any damage, discoloration, or vandalism to the approximately thirty (30) public sunscreen dispensers located east of the dune between Government Cut and 87th Terrace. The City will provide, through its vendor, sufficient product to continually refill all such dispensers so that the Concessionaire may ensure that the dispensers remain sufficiently filled with sunscreen to meet public demand during hours of operation.
· Deploy and manage public beachfront outdoor ashtray program.
· Provide a "promotional towel program" for Luxury Area embroidered with City Approved design.
· Incorporate City’s logo and marks on new equipment.
Enhanced Services:
· Concessionaire shall have the right to deploy one (1) mobile cooking and/or heating facility (food trailer) at the 21st Street beachfront concession (to be operated by means of battery power, solar power, or propane gas systems).
· Concessionaire shall have the right to deploy an ice cream/beverage carts within each of the concession areas.
· Concessionaire shall have the right to subcontract the food and beverage operations in the brick and mortar concession building located west of the dunes at 21st and 46th Streets. The City shall continue to receive 15% of the gross food and beverage sales, as stipulated in the Agreement.
Additional Provisions:
The amendment shall include the following provisions:
· Concessionaire shall be permitted to purchase, at the then current rate, up to one (1) monthly parking pass at each of the 21st and 46th Street surface parking lots.
· Concessionaire shall have the ability to open/close the 46th Street concession area, based on demand, and subject to the prior written approval of the City Manager (or designee).
· Concessionaire shall have the right to install a fenced storage enclosure at 21st Street (similar to the existing storage enclosure at 46th Street), subject to all regulatory approvals.
ASSISTANT CITY MANAGER’S RECOMMENDATION
In lieu of issuing a new competitive solicitation for concession operations at the 21st Street and 46th Street locations, and in order to incorporate the management and operation of those concessions as an amendment to the current Agreement with Boucher Brothers, a waiver of competitive bidding would be required pursuant to City Code Section 2-367(e).
Based upon the foregoing, the Assistant City Manager recommends that the Mayor and City Commission waive the formal competitive bidding requirement, by a 5/7ths vote, as being in the best interest of the City, and authorize the Administration to finalize negotiations with Boucher Brothers for the proposed Amendment No. 1. Once finalized, the proposed Amendment No. 1 would be brought back to the City Commission for final approval.