Marriott Corp. v. Metropolitan Dade County

383 So. 2d 662, 1980 Fla. App. LEXIS 16695
CourtDistrict Court of Appeal of Florida
DecidedApril 15, 1980
Docket79-1365
StatusPublished
Cited by28 cases

This text of 383 So. 2d 662 (Marriott Corp. v. Metropolitan Dade County) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriott Corp. v. Metropolitan Dade County, 383 So. 2d 662, 1980 Fla. App. LEXIS 16695 (Fla. Ct. App. 1980).

Opinion

383 So.2d 662 (1980)

MARRIOTT CORPORATION, a Delaware Corporation, Appellant,
v.
METROPOLITAN DADE COUNTY, Etc., et al., Appellees.

No. 79-1365.

District Court of Appeal of Florida, Third District.

April 15, 1980.
Rehearing Denied June 4, 1980.

*663 Taylor, Brion, Buker & Greene and R. Bruce Wallace, Jr., Miami, for appellant.

Robert Ginsburg, County Atty. and William W. Gibbs, Asst. County Atty., Shutts & Bowen and Eric B. Meyers, Miami, for appellees.

Before BARKDULL, SCHWARTZ and BASKIN, JJ.

BASKIN, Judge.

This appeal challenges a final declaratory judgment approving an award by the Dade County Board of County Commissioners of a contract to operate a bar at the Miami International Airport to Jerry's, Inc. instead of to the Marriott Corporation. This court must decide whether the trial court committed error in approving the award to Jerry's on the ground that it was a local firm, when Marriott's bid returned a higher percentage of the gross revenues to Dade County. We find the trial court erred and reverse.

*664 In 1978, Dade County published an invitation for proposals for competitive bids under an "Operational and Management Services Agreement" to sell alcoholic beverages in the new International Satellite facility at the Miami International Airport. The invitation was advertised pursuant to Section 125.012(17), Florida Statutes (1977) and Section 125.35, Florida Statutes (1977). Each bidder was required to post a guarantee deposit or bid bond in the amount of $25,000 at the time of submitting its proposal.

Compensation to the successful bidder was to be in the form of gross revenues retained from the sale of alcoholic beverages. The successful bidder was to retain 75% of the first $42,000 of monthly gross revenues and to retain the percentage of the monthly gross revenues in excess of $42,000 proposed by the bidder. The successful bid would be the lowest percentage of gross revenues in excess of $42,000 per month to be retained by the concessionaire. There was to be no competitive bidding on the first $42,000 of gross revenues per month, of which all bidders would retain 75% while remitting the remaining 25% to the county. The successful bidder would be responsible for maintenance repair and cleanliness of the third floor bar area and required to provide drinks and snacks to the third floor bar patrons as well as to employ those persons necessary to serve drinks and snacks and manage the bar. The proposed management services agreement was for a fixed term of three years commencing after the people-mover connecting the International Satellite Terminal becomes operational. The agreement was to be renewable at Dade County's option for an additional seven years, subject to Dade County's right to negotiate the modification of compensation.

Instructions to proposers also provided that the parties would be evaluated with respect to:

1. The net profit payment to County as contained in the Proposal Form [the percentage bid];
2. Depth of management, including training schools and programs for management;
3. Experience at other local, state and national locations and ability to provide experienced personnel capable of servicing international travelers;
4. Marketing and consumer research programs;
5. Prior experience in sales outlets of the kind anticipated herein;
6. Number of outlets and their most recent available average gross revenues, separately stated for the outlets for Dade County, the State of Florida, the United States, Central and South America and the Caribbean and Europe;
7. Other factors which will best serve the highest public interest.

Marriott's bid proposed to retain 40% of the gross revenues generated by the franchise in excess of $42,000 per month and to remit to the county 60% of the gross revenues in excess of $42,000 per month. Jerry's bid proposed to retain 50% of the gross revenues in excess of $42,000 per month and to remit 50% to the county. A selection committee interviewed both bidders and recommended that Marriott be awarded the contract. The committee determined that both Marriott and Jerry's were "equally qualified to provide the services of the types and caliber required in this unique facility." The committee letter went on to state: "Since the Marriott Corporation submitted a higher numerical value, the Committee recommends award of the agreement to the Marriott Corporation. It should be pointed out that there is some question as to whether such numerical difference would come into effect during the fixed term of the Agreement."

The county manager recommended that Marriott be awarded the agreement. He stated in his memorandum to the Board of County Commissioners:

Regarding the Alcoholic Beverages Services Agreement, the Committee felt that both Marriott and Jerry's were equally qualified to provide the services desired with a high level of quality. Therefore, the Committee recommended Marriott solely on the basis of the lesser percentage *665 of gross revenues to be retained by them, in the event gross revenues exceed $504,000 per year. It is very doubtful that this factor will come into effect during the fixed term of the Concession Agreement.
The Aviation Director and this office concur in the Committee recommendation, however, if the Board of County Commissioners were to select Jerry's, Inc. it would be equally acceptable.

At a meeting of the Board of County Commissioners, the agenda item was brought up by a member of the Board as follows:

On 6(b)(10), I understand from looking at this that we have two companies that bid it and reading that the difference in the bid is something that probably won't ever come about; that what made one bidder lower was a better percentage on a figure that will probably never be obtained and the other firm that bid it is a local firm, and I'd like ... if there's no objections, I'd like to move that that be awarded to Jerry's."

The motion was passed.

Marriott protested the award to Jerry's and requested the Commission to reverse its decision. It declined to do so and awarded the agreement to Jerry's, Inc. Marriott filed an action for declaratory judgment and other relief. The trial court found that Marriott's projections were based upon erroneous assumptions and that Marriott had failed to sustain its burden of proof that Dade County acted arbitrarily with respect to the award of the contract.

We disagree with the trial court's conclusion that the Board of Commissioners acted within its lawful authority and discretion. We hold that the award to Jerry's, Inc. constituted an abuse of discretion.

The parties have addressed two issues concerning the award of the contract; first, whether the county was obligated to follow competitive bidding standards requiring the award to be made to the lowest or best bidder, and second, whether the award to Jerry's was within the discretion of the Board, taking into consideration that Marriott's bid returned a higher percentage of gross revenues to Dade County.

1. Competitive Bidding.

Competitive bidding generally encompasses the submission of bids to complete a project and the award of the contract to the responsible bidder best able to complete the project in the manner financially most advantageous to the community. Robert G. Lassiter & Co. v. Taylor, 99 Fla. 819, 128 So. 14 (1930).

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Bluebook (online)
383 So. 2d 662, 1980 Fla. App. LEXIS 16695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriott-corp-v-metropolitan-dade-county-fladistctapp-1980.