TO: Mayor and Commissioners
FROM: Suzanne Fisher, Director of Parks and Recreation
THROUGH: Mark R. Lauzier, City Manager
DATE: July 17, 2018
Title
APPROVAL OF RESOLUTION NO. 50-18 TO AWARD A FIVE-YEAR AGREEMENT WITH DELRAY INTRACOASTAL CRUISES DBA DELRAY YACHT CRUISES FOR USE OF THE CITY DOCK AT VETERAN'S PARK IN A CONTRACT AMOUNT OF $695,325 (REVENUE)
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Recommended Action:
Recommendation
Motion to award a five (5) year revenue Agreement with Delray Intracoastal Cruises d/b/a Delray Yacht Cruises for Use of City Dock at Veteran's Park in the amount of $695,325 and to authorize the City Manager to exercise any and all options to renew.
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Background:
On April 9, 2018, the City of Delray Beach (City) issued RFP No. 2018-031 for license agreement for the use of the City dock located at Veteran's Park. This Agreement will allow the successful proposer to utilize the Dock for the provision, operation, maintenance and management of an excursion, boat cruise and/or floating excursion restaurant business. One (1) proposal was received from Delray Intracoastal Cruises d/b/a Delray Yacht Cruises. After review and evaluation of the proposal, Delray Intracoastal Cruises d/b/a Delray Yacht Cruises has been deemed the responsive and responsible vendor recommended for award. The term of the contract will be for five (5) years with two, one-year renewal options.
The scope of services to be provided by the recommended proposer, as noted in full detail in RFP No. 2018-031 (ATTACHMENT 1), is summarized follows:
Operation of yacht cruises (excursion, boat cruise and/or floating excursion restaurant) a minimum of four (4) days a week from May 1 through December 31 and six (6) days a week from January 1 through April 30, weather permitting; excepting periods required for vacation, maintenance and general repair of the operation vessel.
Delray Intracoastal Cruises d/b/a Delray Yacht Cruises offers sightseeing, lunch and dinner cruises as well as private charters with their two vessels the Lady Atlantic and the Lady Delray in a relaxed tropical setting. The public cruises operate 2-3 times per day during peak season.
This motion to award is in accordance with the City Code of Ordinances, Section 36.02 Requires Commission Approval.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
This is a revenue generating contract which will be reflecteded in budgetary account numbers 001-0000-362-51.00 and 001-0000-347-98.10. The attached revenue proposal was received from Delray Yacht Cruises (ATTACHMENT 2).
The City of Delray Beach will receive the following guaranteed revenue with the award of the contract. The supplemental fee is based on a ticket revenue of $0.50 oer passenger over 16,800 passengers.
Year 1: Minimum Base Fee: $120,000 Supplemental Fee:$18,300 Total Revenue to the City of Delray Beach: $138,330
Year 2: Minimum Base Fee: $120,000 Supplemental Fee:$18,950 Total Revenue to the City of Delray Beach : $138,950
Year 3: Minimum Base Fee: $120,000 Supplemental Fee:$19,143 Total Revenue to the City of Delray Beach: $139,143
Year 4: Minimum Base Fee: $120,000 Supplemental Fee:$19,345 Total Revenue to the City of Delray Beach: $139,345
Year 5: Minimum Base Fee: $120,000 Supplemental Fee:$19,557 Total Revenue to the City of Delray Beach : $139,557
The previous vendor that provided this service paid the following revenue to the City:
FY 16/17: $29,340.50
FY 15/16: $17,770.00
Timing of Request:
This is time sensitive.
ATTACHMENT 1 - RFP No. 2018-031
ATTACHMENT 2- Revenue Proposal Delray Yacht Cruises
ATTACHMENT 3 - Resolution No. 50-18
ATTACHMENT 4 - Legal Review Checklist
ATTACHMENT 5 - Legal Agreement signed by Delray Yacht Cruises
ATTACHMENT 6 - Bid Tab Sheet
ATTACHMENT 7 - Bid Scoring