That the Mayor and City Commission approve the Resolution.

On July 25, 2018, the Mayor and City Commission adopted Resolution Number 2018-30399, approving the award of Request for Proposals ("RFP") No. 2018- 166-WG for Valet Parking Services on City-owned property (the "RFP") to First Class Parking System, LLC (“Concessionaire”). 

On November 26, 2018, the City and Concessionaire executed the Agreement with respect to the Valet Parking Services at the Fillmore, at the Jackie Gleason Theater of the Preforming Arts, the Miami Beach Convention Center (the “Convention Center”), and other City properties, as may be required for 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, approving the first one-year renewal term, beginning on November 1, 2019 and ending on October 31, 2020, and modifying the financial terms as contemplated under the Agreement during each annual renewal term.

Due to the impacts of the COVID-19/novel Coronavirus 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"), which agreement is memorialized in a letter agreement dated March 27, 2020.

On September 25, 2020, the City and Concessionaire executed Amendment No. 2 to the Agreement, to correct the commencement date of the Agreement to reflect October 1, 2018, and, accordingly, correct the contract year to start October 1st and end September 30th; and to clarify Section 3.2.3 of the Agreement.  Amendment No. 2 also reflects that during the Suspension Period, the Venues may require valet services, on a demand basis ("Temporary Services"), and 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 occurred first (“Temporary Services Period”).  Amendment No. 2, further, modified the amount of Concession Fees to be paid by Concessionaire to the City, to reflect a monthly Concession Fee equal to twelve percent (12%) of the total monthly Gross Receipts for all transactions (“Temporary Services Period Concession Fee”).

During the Temporary Services Period, the Concession Fees set forth in Section 3.2 of the Agreement, including the Minimum Guarantee of $17,900 a month, the Excess Transaction Fee and Percentage of Gross Receipts (collectively, the “Concession Fees”), would be abated and replaced with the Temporary Services Period Concession Fee.

The Convention Center and the Fillmore were Concessionaire’s primary source of revenue under the Agreement, and in December, 2020, remained closed, with any future re-opening requiring a ramp up period.

On January 13, 2021, the Mayor and City Commission adopted Resolution No. 2021-31543, approving Amendment No. 3 to the Agreement; said Amendment extending the Temporary Services Period, during which the Temporary Services Period Concession Fees would apply, to include the period from February 1, 2021 through September 30, 2021, or until such time as the Convention Center bookings resumed operations at the pre-pandemic booking levels, whichever occurred first.

On March of 2022, the Convention Center reported that their staffing levels were at approximately 80% and their bookings at approximately 90%, as compared to pre-pandemic levels.

At the time Amendment No. 3 was executed, the parties anticipated that the Convention Center operations would have reached pre-pandemic levels by September 30, 2021. Due to the delay in the ramp-up of the Convention Center operations, along with staffing shortages and increased operational expenses, Concessionaire continued to be financially impacted from October 1, 2021 through today.  Consequently, Concessionaire has requested that the City extend the reduced Concession Fee payments, as established in Amendment No. 3, through March 31, 2022.

Although the Convention Center has not quite reached pre-pandemic booking levels, the Concessionaire has agreed to resume payment of the Concession Fees, which were required under the Agreement prior to the commencement of the COVID-19 pandemic, for the remainder of the contract year, from April 1, 2022 through September 30, 2022.

Instead of approving the remaining one (1) year renewal term under the Agreement, the Administration has decided to move forward with the issuance of a new RFP, with a new contract to be effective October 1, 2022.  

Based upon the foregoing, the City Manager recommends that the Mayor and City Commission hereby approve, in substantial form, Amendment No. 4 to the Concession Agreement between the City and First Class Parking Systems, LLC,  said amendment retroactively approving, for the period from October 1, 2021 through March 31, 2022, the reduced Concession Fee payments, approved pursuant to Resolution No. 2021-31543, in order to address the extended financial impact upon Concessionaire, while the Miami Beach Convention Center was ramping up its operations, and resuming payment of the pre-pandemic amount of Concession Fees due under the Agreement, for the period from April 1, 2022 through the remainder of the contract year, September 30, 2022; and further authorize the City Manager to execute the final negotiated amendment.

Attachments:

Concession Agreement;

Amendment No. 1

Letter Agreement Dated March 27, 2020

Amendment No. 2

Amendment No. 3

Amendment No. 4