REGULAR AGENDA: NEW BUSINESS  12.

COMMITTEE MEMORANDUM

HISTORY:

On January 31, 2001, the Mayor and City Commission adopted Resolution No. 2001-24251, approving a First Amendment to the Rules and Regulations for Beachfront Concession Operations, amongst other things, prohibiting the cooking and/or heating of food (i.e. food trailers) on the beachfront effective October 1, 2001.

On September 5, 2001, the Mayor and City Commission adopted Resolution No. 2001-24571, approving the Second Amended and Restated Rules and Regulations for Beachfront Concession Operations, amongst other things, prohibiting beachfront cooking and heating, except for existing cooking and heating facilities at their existing locations.

On January 30, 2002, the Mayor and City Commission adopted Resolution No. 2002-24736, directing the administration to proceed with amending the Second Amended and Restated Rules and Regulations for Beachfront Concession Operations regarding several issues.

On March 17, 2003, the Second Amended and Restated Rules and Regulations for Beachfront Concession Operations were amended and known as the Consolidated Second Amended and Restated Rules and Regulations for Beachfront Concession Operations (“2003 Rules and Regulations”).

As stated in Paragraph 16 of the 2003 Rules and Regulations:

Any cooking and heating facilities which were authorized and licensed as of September 5, 2001, shall be permitted to remain for a period not to exceed the normal life expectancy (from manufacture date) of a facility located daily on an oceanfront beach, as determined by the manufacturer, following the City Commission’s approval of future design standards for all beachfront concession facilities. The design standards approved by the City Commission shall be incorporated by adoption into these Rules and Regulations. Thereafter, all Upland Owner Concessionaires shall be required to comply with the design standards, as adopted by the City Commission and incorporated herein.

At that time, five (5) food trailers met the requirements to remain on the beachfront.  Since it was difficult to ascertain the “normal life expectancy” of a food trailer, or even the manufacturer’s date, the food trailers continued to operate on the beach as a result of continued repairs, replacement and/or upgrades of various components of the trailers.  This practice circumvented the intention of the City Commission when the above stipulation was adopted as part of the 2003 Rules and Regulations.

On May 11, 2016, the Mayor and City Commission adopted Resolution No. 2016-29403, approving the Third Amended and Restated Rules and Regulations for Beachfront Concession Operations (“2016 Rules and Regulations”) which are currently in effect.  As part of the 2016 Rules and Regulations, as all five (5) food trailers were still operating on the beachfront, well beyond the timeframe anticipated in 2003, the City Commission decided to implement a hard deadline, while at the same time providing ample notice to the food truck operators.

Accordingly, as stated in Paragraph 6(c) of the 2016 Rules and Regulations:

Cooking and heating Concession Facilities will only be permitted at those locations: (1) where cooking and heating Concession Facilities activities have been continuously engaged in pursuant to a valid Business Tax Receipt from the City issued on or before September 5, 2001 and (2) the same Concessionaire has continued to possess a valid Business Tax Receipt for each year thereafter.  Any cooking and heating Concession Facilities which were authorized and licensed as of September 5, 2001, shall be permitted to remain for a period not to exceed the normal life expectancy (from manufacture date) of a facility located daily on an oceanfront beach, as determined by the manufacturer, or two (2) years after the adoption of the 2016 Rules and Regulations, whichever comes first.

Based on the foregoing, cooking and heating Concession Facilities (i.e. food trailers) were not permitted to operate on the beachfront beyond May 11, 2018.  As of May 11, 2018, there were three remaining food trailers operating on the beachfront.  These trailers were located behind the Il Villagio at 1455 Ocean Drive, The Setai at 2001 Collins Avenue and The W at 2201 Collins Avenue.  The Il Villagio ceased operations on or about May 11, 2018 but the other two locations continued to operate the food trailers.  On June 6, 2018, the City issued Notices to Cease Operating Food Trailers on the Beachfront and at this time there are no food trailers operating on the beachfront.

Resolution No. 2016-29403 also adopted the recommendation of the Neighborhood/Community Affairs Committee that the existing food trailers, which were to be eliminated two (2) years following the adoption of the Revised Rules and Regulations, should be replaced with a beachwide food trailer program to be procured with a Request for Proposals (RFP).

Food Trailer Pilot Program Seaward of Private Upland Properties

On June 27, 2018, the Mayor and City Commission adopted Resolution No. 2018-30369 approving a six month pilot program, commencing July 1, 2018, in order to evaluate food trailers located behind private upland properties (i.e. hotels and condominiums).  These locations were separated from the RFP process as these operators are best suited to operate an adjacent food trailers utilized by hotels and condominiums as mobile food and beverage stations and provide faster and better service from the upland property to the public, residents and guests on the beachfront

Under the pilot program, the upland property owner shall pay the City a fee of $10,000 monthly, plus applicable taxes.  The food trailers must be operated by the upland property owner and subcontracting to third party operators is prohibited.  If the pilot program is deemed successful, the Administration will submit modifications to the Beachfront Concession Rules and Regulations to allow the food trailers as part of the Beachfront Concession Agreements which are issued annually to the upland property owners. 

ANALYSIS:

In developing an RFP for a beachwide food trailer program, there are several options that should be considered, including, but not limited to, the number of food trailers permitted to operate, placement locations for food trailer concessions, allowable goods and services to be sold at the concessions, pricing for allowable goods and services, physical requirements for the food trailers and associated equipment, and rent and/or revenue sharing consideration to the City.

Administration Recommendations for RFP for Beachfront Trailers Seaward of Upland Properties

The food trailers would be located on the beachfront at various street ends and at properties, either on the beachfront or west of the dunes, where the City is the upland owner.  The Administration has contacted the Ocean Drive Association and they strongly oppose any food trailers between 5^th Street and 15^th Street (Lummus Park).  In addtion, given potential hotels taking advantage of the pilot program,  and taking both factors into consideration, the Administration has reviewed the remaining potential public locations beachwide and recommends the following five (5) locations for consideration:

1.    Lincoln Road Street End (on the beachfront) – major access point with high foot traffic.

2.    26^th Street End (on the beachfront) – near newly designated kiteboarding area

3.   36^th Street Parking Lot (on the beachfront) – adjacent to public parking and restrooms, vehicle access point

4.   53^th Street Parking Lot (on the beachfront) – adjacent to public parking and restrooms, vehicle access point

5.    79^th Street Area/North Beach Oceanside Park (west of the dune) – serve park and beach patrons

Note: Boucher Brothers already operates City food concessions on the beach seaward of  Lummus Park, 21st Street and 46th Street.

As some locations may be deemed more lucrative than others, the Administration recommends requiring respondents to propose on a per location basis.  The proposals should include menu options, pricing and detailed information regarding the food trailer and associated equipment.  The proposals should also include the rent and/or revenue sharing consideration to the City over the initial three (3) year term of the agreement.  The agreement could be renewed, on a per location basis, at the City’s sole discretion, for two (2) additional one (1) year periods. 

Under the agreement, the food trailers would be required to operate on solar and/or battery power with no use of gas powered generators.  The operators would be responsible for all trash and debris generated by the food trailers and the operators would be required to comply with all City ordinances including the prohibition of polystyrene.

CONCLUSION:

The Administration seeks direction regarding the issuance of a Request for Proposals (RFP) for beachfront concession food trailers seaward of City-owned upland properties.