A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE WRITTEN RECOMMENDATION OF THE CITY MANAGER (AS SET FORTH IN THE CITY COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION) 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 CONCESSION AGREEMENT (ATTACHED TO THE CITY COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION), BETWEEN THE CITY AND THE MARKET COMPANY, INC., FOR THE MANAGEMENT AND OPERATION OF THE ESPANOLA WAY STREET MARKET ON A MONTH-TO-MONTH BASIS; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED CONCESSION AGREEMENT.

Approve the Resolution the Commission consistent with Commission direction on December 13, 2018 thereby  the Commission directed the Administration to develop a concession agreement allowing the existing Concessionaire to commence market operations on a month-to-month basis in while Administration prepares the RFQ process and analyzes how best to expand its outreach efforts

BACKGROUND

On August 19, 2013, Request for Proposals No. 2013-317ME was issued for the management and operation of street markets. On April 23, 2014, the Commission adopted Resolution No. 2014-28573, authorizing the City Manager to execute four separate concession agreements with The Market Company, Inc. (Concessionaire) for each of the green markets at Lincoln Road, Collins Park, Normandy Village Isle, and South of Fifth.

In April 2015, Concessionaire exercised the termination for convenience provision contained in the agreement for the Collins Park location. Under the agreement’s terms, Concessionaire was required to pay the City 15% of gross receipts, with a minimum annual guarantee of $5,000 regardless of actual revenue.  Concessionaire cited a lack of interest from vendors and, therefore, lower than expected revenue, which did not meet the minimum guarantee of $5,000.

In May 2017, Concessionaire renewed its agreements for Lincoln Road and Normandy Village Isle, under the same terms and conditions, for a renewal period of two years, commencing October 1, 2017 and ending September 30, 2019. 

In June 2017, Concessionaire submitted a renewal request to the City for the South of Fifth Street Market.  Concessionaire’s proposed two-year renewal contained the same terms and conditions, except that Concessionaire requested the City waive the guaranteed annual rent of $5,000 throughout the renewal term. Concessionaire attributed this request to low vendor participation. Nevertheless, Concessionaire noted sustained interest in the market, demonstrated by a small and steady patronage of residents and community members. Accordingly, Concessionaire sought to continue operating the market, but with payment to the City consisting only of 15% of gross sales receipts.

On September 28, 2017 and October 26, 2017, the Administration met with representatives from the Espanola Way Association, Inc. (Association), the business association of Espanola Way merchants and owners.  In an effort to further activate Espanola Way, the Association requested that the City enter into a new concession agreement with Concessionaire for a street market along the pedestrian portion of Espanola Way, between Washington Avenue and Drexel Avenue.  The Association feels Concessionaire is best–suited to operate the location because it currently operates markets in other locations throughout Miami Beach and previously operated a street market at Espanola Way from 2006 to 2009.  In order to do so, pursuant to Section 2-367(e) of the City Code, the Mayor and City Commission would be required to waive, by a 5/7^th vote, the competitive bidding process.

December 13, 2017 Commission Meeting

The Commission discussed this item at its December 13, 2017 meeting. The Commission instructed the Administration to issue a Request for Qualifications (RFQ) for Espanola Way and South of Fifth with expanded outreach efforts.

However, in the interest of immediately activating Espanola Way during tourism season, the Commission authorized Concessionaire to commence market operations on a month-to-month basis in the interim. The Commission accepted Concessionaire’s request to omit the standard concession term requiring a minimum annual guarantee of $5,000. Given Concessionaire’s qualifications and ability to immediately start operating the Espanola Way Market, the Commission waived competitive bidding to enter the proposed Concession Agreement.

As the Administration prepares the RFQ process and analyzes how best to expand its outreach efforts, it has negotiated the proposed Concession Agreement attached hereto as Exhibit A (Concession Agreement). Other than minimum guaranteed rent, the basic terms and conditions are generally consistent with Concessionaire’s other agreements, as follows:

Basic Lease Terms

Concessionaire: The Market Company, Inc.

Concession Area: Espanola Way between Drexel Avenue and Washington Avenue

Use: Open-air street market offering arts and crafts, flowers and plants, produce and other edible items

Term: Month-to-month term, ending September 30, 2019 (coterminous with Concessionaire’s other current agreements) or upon award of a contract following competitive bidding, whichever occurs first

Days/Hours: Sundays 10 AM – 2 PM

                     Tuesdays 4 PM – 10 PM

Concession Fee: 15% of Concessionaire’s gross receipts

Minimum Guaranteed Rent: None

Security Deposit: $1,000

Termination for Convenience: Either party may terminate without cause upon provision of 30 days’ notice

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.

CONCLUSION

The Administration recommends that the Mayor and City Commission approve the attached Concession Agreement and authorize the Administration to issue an RFQ for the management and operation of Street Markets in South of Fifth and Espanola Way.

Exhibits:

A         Concession Agreement