A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT OF SECTION 2-367(E) OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND APPROVING, IN SUBSTANTIAL FORM, A CONCESSION AGREEMENT BETWEEN THE CITY AND FRIENDS OF THE BASS MUSEUM, INC. D/B/A THE BASS MUSEUM OF ART, FOR MANAGEMENT AND OPERATION OF A FOOD AND BEVERAGE CONCESSION IN THE OUTDOOR SPACE, HAVING APPROXIMATELY 2,000 SQUARE FEET, ADJACENT TO 2100 COLLINS AVENUE, FOR SEASONAL OPERATION, FOR AN INITIAL THREE (3) YEAR TERM, COMMENCING RETROACTIVELY ON NOVEMBER 1, 2018, WITH TWO (2) ADDITIONAL RENEWAL OPTIONS, OF ONE (1) YEAR EACH, AT THE CITY MANAGER'S SOLE DISCRETION, AND SUBJECT TO TERMINATION BY EITHER PARTY UPON 30 DAYS WRITTEN NOTICE; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AGREEMENT, SUBJECT TO REVIEW AND FORM APPROVAL BY THE CITY ATTORNEY.

Pursuant to direction from the Commission to negotiate and return with the agreed terms, the Administration recommends approving the agreement.

BACKGROUND

On May 21, 2014, the City Commission referred to the Finance and Citywide Projects Committee (“FCWPC”) a discussion of whether to pursue food and beverage concessions in certain public green spaces including Collins Park (Exhibit 1). At its June 20, 2014 meeting, the Committee recommended waiting for a broader master plan for activating Collins Park before pursuing a concession operation at this location. The matter was further developed during several FCWPC meetings throughout 2015 and today.

Pursuant to an RFP  in June 2016, the Friends of the Bass, Inc. (“Bass”), operator of the Bass Museum pursuant to a City-issued letter agreement, identified Thierry’s Inc. d/b/a Thierry Isambert Culinary and Event Design (“Thierry’s”) as exclusive caterer of the new indoor restaurant, The Bass Café. Thierry’s also serves as exclusive caterer to The New World Center. Staff met with the Bass to discuss expanding the indoor café to the building's exterior, thereby also serving the public in addition to museumgoers, and further activating Collins Park (Exhibit 2). The Bass, which has used special events permits for event programming in Collins Park in the past, was amenable to the concept.

Following discussions with Thierry’s to service both the indoor and outdoor areas, the Bass requested the City Commission's consent to operate the outdoor area only during the profitable seasonal months (approximately December to May) and avoid the high temperatures outdoors the rest of the year.  On January 11, 2017, pursuant to Resolution No. 2017-29711, the City Commission approved the FCWPC’s recommendation of an agreement using Thierry’s for the outdoor concession area and without any financial consideration paid to the City (Exhibit 3).  The Commission further directed that the final, negotiated agreement be brought back for its consideration.

Concession Furniture Grant Funding

To facilitate the opening of an outdoor component, the City allocated $100,000 for the purchase of furniture and fixtures as part of the FY 16-17 capital budget and independent of the annual letter agreement with the Bass for management of the museum. Following interior renovations and the reopening of the museum in October 2017, staff began drafting a grant agreement between the City and the Bass to provide these capital funds for the purchase of outdoor café furniture. Earlier this year, the Bass informed the City Commission that it desired to use existing furniture for the outdoor dining space as a pilot program to test attendance and gross earnings over a full season. Following the first full season, the Bass would return to the Commission with a business plan detailing the necessary furniture acquisition and build out. On March 7, 2018, the City Commission adopted Resolution No. 2018-30209, delaying the grant for the purchase of outdoor café furnishings during the pilot first season (Exhibit 4).

Other than omitting financial compensation to the City and operation on a trial basis, the current draft of the negotiated agreement (Exhibit 5) contains basic terms generally consistent with the City's other concession agreements:

Key Lease Terms

CITY MANAGER’S RECOMMENDATION

Based upon the foregoing, the City Manager recommends that the Mayor and City Commission waive the formal competitive bidding requirement, by a 5/7^th vote, as permitted under Section 2-367(e) of the City Code, as being in the best interest of the City.

The Administration therefore recommends that the Mayor and City Commission approve the Resolution authorizing the City Manager and City Clerk to execute a final, negotiated concession agreement following form approval by the City Attorney.  

It is anticipated that the outdoor concession will not add to the City’s costs nor contribute any revenue. However, the City Commission did allocate $100,000 from the FY 16/17 budget, as stated above.