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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: