Item Coversheet

NEW BUSINESS  16.

COMMITTEE MEMORANDUM

TO: Finance and Citywide Projects Committee Members


FROM:
Jimmy L. Morales, City Manager


DATE: May 18, 2018


SUBJECT:DISCUSSION REGARDING A TERM EXTENSION OF SIX (6) MONTHS AT THE COMPLETION OF THE SCHEDULED CONSTRUCTION PROJECTS AT THE NORTH SHORE TENNIS CENTER FOR VAN DAALEN TENNIS, LLC. TO PROVIDE PROGRAMMING AT THE CITY’S NORTH SHORE TENNIS CENTER

HISTORY:

At the April 11, 2018 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 Miami Beach Tennis Center (formerly known as North Shore Tennis Center), was referred to the Finance and Citywide Projects Committee (“FCWP”).


ANALYSIS:

The current one-year pilot agreement with the contractor, Van Daalen Tennis, LLC. for the management and operation of tennis programming and pro shop services at the Miami Beach Tennis Center is set to expire on July 31, 2018 (Exhibit A).

 

The City has met with Van Daalen Tennis, LLC. to discuss the renegotiation some of the terms in the current agreement (Exhibit B). The main highlights are outlined below:

 

Modification to Section 2: The Center

2.1 Language identifying “the Center” as the North Shore Tennis Center has been changed to the Miami Beach Tennis Center.

 

Modification to Section 6.4: Public Benefits

6.4.2 Language added to include the following: Additionally, in connection with the Parks and Recreation Department’s summer sports specialty camp program, CONTRACTOR agrees to provide two instructors, who will provide tennis classes for the participants enrolled in the summer sports specialty camp for one week during the scheduled summer sports specialty camp, for a total of ten (10) hours, typically between the hours of 9:30 a.m. and 12:00 p.m., for the total fee of $850.00. CONTRACTOR and City shall reach an agreement with respect to the dates, times and locations for the summer sports specialty camp.

 

Modification to Section 7: Tennis Fees, Programs & Related Services to be Provided

7.1 Language added to include: CONTRACTOR shall also comply with the City’s established fees for hourly tennis court play, annual permits and other specialized play. CONTRACTOR will provide a club basket available for use on a first-come first-served basis for members and resident nonmembers, for a fee of $10.00 per hour for members, and $20.00 per hour plus court fees for resident nonmembers. Usage of the club basket will be limited to no more than 2 players on a court. If a tennis user of a court, lesson, clinic, etc. play is affected with less than 30 minutes of play due to weather, the user will be entitled to a reimbursement/pay-out/raincheck. If play exceeds 30 minutes it’s at the discretion of the CONTRACTOR to offer a reimbursement/pay-out/raincheck. Furthermore, Light Fees will only be charged to nonmembers. Those purchasing memberships will not be required to pay Light Fees.  

 

7.6 Computer software system language deleted and replaced with: The CONTRACTOR shall utilize the City’s current recreation software system (i.e.  Rec Trac) for the purposes of tracking reservations, financials, memberships, concessions, merchandise, etc. The CONTRACTOR shall have Tennis Module rights to the Miami Beach Tennis Center computer software system. Additionally, phone and in-person reservations must be provided for by the CONTRACTOR all of which must be cross referenced to avoid overbookings, no-shows, and adherence to prioritization and utilization of courts for public usage by restricting lesson/clinic/programming courts during peak hours. All revenue collected at the Center must go through the City’s secured systems.

 

Modification to Subsection 14.2 City Special Events

Language deleted and replaced with: Notwithstanding Subsection 14.1 above, and in the event that the City, at its sole discretion, deems that it would be in the best interest of the City, the City reserves the right to utilize the Center for City produced tennis related special events and/or other City sponsored special events productions such as local and international tennis tournaments. In such cases, the City will coordinate with the CONTRACTOR to cooperatively produce such events. CONTRACTOR agrees that the number of courts utilized shall be determined by the City and that events will be held during the Center’s operating hours. CONTRACTOR shall retain any income related to the special event and/or production as it pertains to food and beverage concessions, stringing and merchandise sales. CONTRACTOR agrees that facility usage for events may include use of: locker rooms, activity rooms and office space, umpire chairs, umbrellas, coolers, scoreboards, net-sticks and the like. If negotiations between the City and the CONTRACTOR prove to be unsuccessful, the CONTRACTOR shall cease and desist operations during the term of, and in the area of, the special event and/or production.

 

The discussion of the agreement extension and the proposed modifications to the agreement with Van Daalen Tennis, LLC. was heard at the May 2, 2018 Parks and Recreational Facilities Advisory Board meeting where the Board unanimously passed the following motion: The Parks and Recreational Facilities Advisory Board motions to favorably recommend a term extension of 6 months after` the completion of the scheduled construction projects at the Miami Beach Tennis Center for Van Daalen Tennis, LLC. to include the amendments made to the agreement as discussed at our Board meeting (Exhibit C).

 

It is important to note that since Van Daalen Tennis, LLC. took over programming at the Miami Beach Tennis Center, both programming and merchandise revenues have seen a steady increase. 

 

Customer satisfaction has played a big factor in the success of the revitalization of the Miami Beach Tennis Center due to the quality of programming offered, as well as the professionalism displayed by the Contractor and his team. It is anticipated that, at the completion of all pending construction projects, Van Daalen Tennis, LLC. will continue to provide and expand program offerings for residents and tourists at a new, world-class facility.



CONCLUSION:

Finance and Citywide Projects Committee to discuss a term extension of six (6) months after the completion of the scheduled construction projects at the Miami Beach Tennis Center for Van Daalen Tennis, LLC. to provide programming at the City’s Miami Beach Tennis Center.


ATTACHMENTS:
DescriptionType
Exhibit A – Van Daalen Tennis, LLC. Pilot AgreementMemo
Exhibit B – Draft Amendment No. 1 to MVD Pilot AgreementMemo
Exhibit C – LTC 249-2018 Advisory Board MotionsMemo