HomeMy WebLinkAbout2013-047-1843 - Agreement with MH Management Inc 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 City of Miami Gardens Agenda Cover Memo Council Meeting Date: February 13, 2013 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading:(Enter X in box) 1 st Reading 2 nd Reading X Public Hearing:(Enter X in box) Yes No Yes No X Funding Source: General Fund Advertising Requirement:(Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #:N/A X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) N/A X Sponsor Name Dr. Danny O. Crew, City Manager Department:City Manager’s Office Short Title: A RESOLUTION OF THE CITY CO UNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER TO AMEND THAT CERTAIN AGREEMENT WITH MH MANAGEMENT, INC. FOR VENDING MACHINE SERVI CES; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDIN G FOR AN EFFECTIVE DATE. Staff Summary: Background City Staff prepare specifications for Vending Machine Services – Revenue Sharing and posted bid ITB#10 ‐11 ‐022 on January 28, 2011. The City received two (2) responses. The City Manager awarded the contract to MH Management Inc. located in Miami Gardens and executed the Contract on March 17, 2011. The vending machines are in place at the following locations: Public Works Facility
1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 Police Department City Hall Scott Park Miami Carol City Park Betty T. Ferguson Recreation Complex The contract provides for a share in gross revenue which is due to the City on the 15 th of each month after the end of the previous month. Current Situation City Staff was recently approached by MH Management regarding its inability to meet the revenue share amount due to the City, as stipulated in its contract. The primary reason given by MH Management was because of the decline in vending machine revenue brought on by operation of the concessionaire at the BTF Recreation Complex. City Staff met with Margaret Hinds and agreed to modify the contract such that the revenue share would be reduced to 20% of gross revenues (from 30%). At issue is the revenue share amount currently due to the City from MH Management. This vendor has not made the required payment to the City since November 2011. At this time an amount estimated at $7,436.18 is due from MH Management. It is requested that City Council consider waiving the amount due from MH Management, thus bringing the contract into compliance which will allow the City Manager the authority to amend the terms as indicated above. Proposed Action: That the City Council approve the attached resolution. Attachment: