Miami-Dade Legislative Item
File Number: 111974
Printable PDF Format Download Adobe Reader  Clerk's Official Copy   

File Number: 111974 File Type: Resolution Status: Adopted
Version: 0 Reference: R-974-11 Control: Board of County Commissioners
File Name: BID WAIVER AND AGREEMENT WITH KELLY FLEET INC. Introduced: 9/22/2011
Requester: Parks, Recreation and Open Spaces Cost: Final Action: 11/15/2011
Agenda Date: 11/15/2011 Agenda Item Number: 8H1
Notes: Title: RESOLUTION AUTHORIZING WAIVER OF FORMAL COMPETITIVE BID PROCEDURES PURSUANT TO SECTION 5.03(D) OF HOME RULE CHARTER AND SECTION 2-8.1(B) OF THE CODE OF MIAMI-DADE COUNTY BY TWO-THIRDS VOTE OF BOARD MEMBERS PRESENT TO APPROVE THE CONCESSION AND OPERATING AGREEMENT BETWEEN KELLEY FLEET, INC. AND MIAMI-DADE COUNTY AND AUTHORIZING COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE SAME AND EXERCISE ANY AND ALL RIGHTS CONFERRED THEREIN
Indexes: BID WAIVER
Sponsors: Sally A. Heyman, Co-Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 11/15/2011 8H1 Adopted P

Recreation & Cultural Affairs Committee 10/24/2011 3D Forwarded to BCC with a favorable recommendation P
REPORT: Assistant County Attorney Monica Rizo read the foregoing proposed resolution into the record. In response to Commissioner Sosa’s inquiry regarding the process used in the Concession and Operating Agreement with Kelley Fleet, Inc., Mr. Jack Kardys, Director, Department of Parks, Recreation and Open Spaces, provided an overview of the foregoing proposed resolution, requesting waiver of competitive bid for the drift boat fishing operation at Haulover Beach Park. He noted this was an uncommon operation and Kelley Fishing Fleet, the current operator, successfully ran this operation for the last 30 years. Mr. Kardys said market research conducted did not reveal other capable operator(s) who owned this number of boats. Commissioner Sosa noted she wanted to confirm that the market research was conducted; that the operator had an outstanding track record; and that additional revenues would be received by the County; otherwise, she would not be supportive. Ms. Lisa Martinez, Senior Advisor to the County Mayor, noted staff also collaborated with the Internal Services Department. Commissioner Heyman acknowledged the presence of George and Alicia Kelley. She said that despite the economic downturn and other natural disasters that occurred at Haulover Marina over the years, Kelley Fleet had provided continuity for the fishing fleets serving the Marina. Commissioner Heyman noted every year Kelley Fleet provided trips for special needs children. Mr. Kardys expressed appreciation to George and Alicia Kelley for their exceptional management of the fishing fleet serving Haulover Marina; for keeping people employed in our community; and for providing good options for fishing enthusiasts. Hearing no further comments or questions, Committee members proceeded to vote on the foregoing resolution as presented.

County Attorney 10/6/2011 Assigned Monica Rizo 10/13/2011

County Mayor 10/6/2011 Assigned County Attorney 11/15/2011
REPORT: PROS- (ASST. COUNTY ATTY: MONICA RIZO) (NO BCC SPONSOR) (RCA 10/24/2011) (ITEM INCORPORATES THE CAO CHANGES WITHIN THE MAYOR'S MEMO AND THE AGREEMENT)

County Attorney 10/4/2011 Assigned County Mayor
REPORT: ITEM RETURNED TO AGENDA OFFICE

County Attorney 9/30/2011 Assigned Monica Rizo

County Mayor 9/22/2011 Assigned County Attorney 11/15/2011
REPORT: PARKS & REC. - Monica Rizo assisted - no sponsorship required - pending cmte - Attachements: #1 and #2

County Mayor 9/22/2011 Assigned Lisa Martinez 9/22/2011

Legislative Text


TITLE
RESOLUTION AUTHORIZING WAIVER OF FORMAL COMPETITIVE BID PROCEDURES PURSUANT TO SECTION 5.03(D) OF HOME RULE CHARTER AND SECTION 2-8.1(B) OF THE CODE OF MIAMI-DADE COUNTY BY TWO-THIRDS VOTE OF BOARD MEMBERS PRESENT TO APPROVE THE CONCESSION AND OPERATING AGREEMENT BETWEEN KELLEY FLEET, INC. AND MIAMI-DADE COUNTY AND AUTHORIZING COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE SAME AND EXERCISE ANY AND ALL RIGHTS CONFERRED THEREIN

BODY
WHEREAS, this Board desires to accomplish the purpose outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board authorizes the waiver of formal competitive bidding procedures pursuant to Section 5.03(D) of the Home Rule Charter and Section 2-8.1(b) of the Code of Miami-Dade County, Florida by a two-thirds (2/3) vote of those members present to approve a Concession and Operating Agreement between the County and Kelley Fleet, Inc., in substantially the form attached hereto as Attachment 1, and authorizes the County Mayor or Mayor’s designee to execute such Agreement on behalf of the County and to exercise any and all other rights conferred therein.

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members of the Board of County Commissioners

From: Carlos A. Gimenez
Mayor

Subject: Bid Waiver and Agreement with Kelley Fleet Inc. for the Concession and Operation of the Drift Boat Fishing Facility at the Bill Bird Marina at Haulover Park

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board adopt a resolution and approve a bid waiver for a new Agreement between Kelley Fleet, Inc. (“Kelley Fleet”), and Miami-Dade County, pursuant to section 5.03(D) of the Home Rule Charter and Section 2-8.1(B) of the Code of Miami-Dade County. This Concession Agreement for a period of 10 years is in the best interest of the County to continue the relationship with a proven business ensuring a consistent revenue stream in an unstable economic environment. The Kelley Fleet drift boat fishing operation is an institution that defines Haulover Marina, that provides much needed additional revenues and will provide renovation of the existing concession building and other amenities associated with the agreement.

Market research conducted by the department concluded that there is very limited willingness or interest, from the companies contacted, to expand and to move their current operations to Miami-Dade County. Furthermore, only one company other than Kelley Fleet indicated having the financial capacity to operate at least three vessels at Haulover Marina. Companies from Palm Beach, Broward, Miami-Dade and Monroe Counties were contacted that provide a similar drift boat fishing operation as Kelley Fleet.

Scope
Kelley Fleet is located in the Bill Bird Marina at Haulover Park at 10800 Collins Avenue, Miami Beach (Commission District 4), and is open to all residents and visitors of Miami-Dade County. The proposed agreement is expected to have a County-wide impact.

Fiscal Impact/Funding Source
There is a direct positive fiscal impact to the County relating to this proposed revenue generating agreement. Current average annual revenues to the department are $37,200. The new agreement negotiated additional revenues to the department of $29,200 annually (or $292,000 over the term of the 10 year agreement). This new agreement further increases much needed revenue to the department. Combined, the current average annual revenue ($37,200) and the additional annual revenue ($29,200) total $66,400 annually or $664,000 over the term of the 10-year agreement.

Track Record/Monitor
Kelley Fleet has operated, managed, and maintained drift fishing boats at Haulover Marina since February of 1982. Kelley Fleet has provided a high level of service to the County and customers that meets or exceeds the requirements of the current agreement. The remittance of monthly fees has been consistent and timely. Additionally, Kelley Fleet has an outstanding track record of providing exceptional customer service and satisfaction.

The Concession Agreement (attachment #1) will be monitored and managed by Jon Seaman, MDPR Contract Manager.

MANAGER'S BACKGROUND
Background
George Kelley, at the time of the Request for Proposals in 1981, had already been in the drift boat fishing business at Haulover for nearly 24 years, starting in 1957, owning five independently operated drift fishing boats. In February of 1982, Kelley Fleet was awarded the contract.

On February 3, 1982, the Lease and Concession agreement (R-122-82) was executed with Kelley Fleet, Inc. with an initial term of 10 years, including two additional options to renew for 10 years each for a total term of 30 years, for the operation of drift boat fishing services to the general public at Haulover Park. The current agreement with all options to renew exercised will expire on January 31, 2012. This Lease and Concession agreement was subsequently amended three times, in 1992 (R-529-92), 1999 (R-894-99) and in 2002 (R-183-02) see (attachment #2). The first amendment clarified a clerical error in the initial term ending date, approves the renewal of the Agreement for an additional 10 years and allowed for Kelley Fleet to provide free half-day trips to the Department in order to allow children and seniors participating in programs the opportunity to experience drift boat fishing. Due to a severe downturn in business following Hurricane Andrew, increased debt service incurred from replacing a boat lost in the storm, and taking into account a reduced fleet size, the Lease and Concession agreement was amended in 1999. This amendment reduced the minimum annual guarantee from $60,000 to $36,000 annually and provided for a payment of arrearages of $33,478.76. The third amendment approved the second renewal for 10 years effective February 1, 2002 through January 31, 2012 and reduced the number of wet slips for use by Kelley Fleet from seven to the current amount of three, thus allowing additional revenue generating commercial wet slips for the department’s use. Kelley Fleet currently provides a concession service to patrons and visitors of the marina and operates three drift fishing boats.

George Kelley transformed the drift boat fishing fleet into a professionally operated and customer-focused organization. Kelley Fleet has weathered economic downturns throughout the years and has consistently employed boat operators, deck hands and dock workers. Successive waves of economic turbulence have hit Haulover Marina hard. The once popular restaurant, sightseeing cruises and dinner boats have all gone out of business; however Kelley Fleet, even without these supporting anchor businesses, has persevered. Kelley Fleet has become an institution with more than 50 years at Haulover Marina.

Kelley Fleet’s current average monthly payment is $3,100 in base rent and percentage of gross sales fees. In the proposed agreement, Kelley Fleet agreed to continue its minimum monthly payment of $3,100 and will pay an additional $25,000 annually each year for the term of the agreement ($2,084 in monthly payments) totaling an additional $250,000 over the term of the agreement. Kelley Fleet has also agreed to defray the cost of waste removal and collection by paying an additional $350.00 per month ($4,200 per year or $42,000 over the term of the agreement) to the Department. The total minimum expected payments of $664,000 over the term of the agreement represents an increase of $292,080 (78.5% increase) from the current rent structure over this time period.

The new agreement requires that Kelley Fleet will also be responsible for renovations to their existing building requiring a minimum capital investment of $25,000. The 10 year term of the proposed agreement will make it feasible for Kelley Fleet to make the capital improvements within the first year of the agreement and pay the new higher minimum annual guarantee to the County. The agreement also provides that the Security Deposit of $30,000, currently in place, continue with the new proposed agreement.

This Agreement, with such historical significance in name recognition and service to the community, is in the best interest of the residents and visitors of Miami-Dade County; additional revenues resulting from this agreement will benefit the entire County.



Attachments



_______________________________
Lisa M. Martinez
Senior Advisor to the Mayor



Home  |   Agendas  |   Minutes  |   Legislative Search  |   Lobbyist Registration  |   Legislative Reports
2014 BCC Meeting Calendar  |   Miami-Dade County Code of Ordinances   |   ADA Notice  |  

Home  |  Using Our Site  |  About Phone Directory  |  Privacy  |  Disclaimer

E-mail your comments, questions and suggestions to Webmaster  

Web Site © 2014 Miami-Dade County.
All rights reserved.