C2B - Water Taxi Concession

Procurement Requests - C2 B

C2 B A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, A CONCESSION AGREEMENT WITH WATER TAXI OF MIAMI BEACH, LLC, PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 2025-284-ND FOR WATER TAXI SERVICE; FURTHER, AUTHORIZING THE CITY MANAGER TO FINALIZE THE AGREEMENT; FURTHER, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT; AND FURTHER, APPROVING RETROACTIVELY A MEMORANDUM OF UNDERSTANDING WITH WATER TAXI OF FORT LAUDERDALE, LLC FOR WATER TAXI SERVICES DURING ART WEEK 2025. (TRANSPORTATION AND MOBILITY) Applicable Area:

COMMISSION MEMORANDUM

TITLE:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, A CONCESSION AGREEMENT WITH WATER TAXI OF MIAMI BEACH, LLC, PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 2025-284-ND FOR WATER TAXI SERVICE; FURTHER, AUTHORIZING THE CITY MANAGER TO FINALIZE THE AGREEMENT; FURTHER, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT; AND FURTHER, APPROVING RETROACTIVELY A MEMORANDUM OF UNDERSTANDING WITH WATER TAXI OF FORT LAUDERDALE, LLC FOR WATER TAXI SERVICES DURING ART WEEK 2025. (TRANSPORTATION AND MOBILITY)

RECOMMENDATION

The City Administration (“Administration”) recommends that the Mayor and City Commission (“City Commission”) adopt the Resolution.

BACKGROUND/HISTORY

The City of Miami Beach (“City”) has long recognized the potential benefits of waterborne transportation as a sustainable, efficient, and congestion-reducing alternative to traditional road- based transit. To that end, the City seeks to establish a robust and integrated water taxi network that aligns with broader transportation goals. The Request for Qualifications (“RFQ”) 2025-284- ND invited experienced water taxi operators to propose sustainable, innovative, and financially viable service models that enhance connectivity, reduce roadway congestion, and integrate seamlessly with the City’s existing transit infrastructure. The envisioned service will ensure a strategically planned water taxi network that meets passenger needs and regulatory requirements and supports both local and regional mobility.

The Miami-Dade County Transportation Planning Organization (“TPO”) conducted a Waterborne Network Feasibility Study (“Feasibility Study”) to evaluate the feasibility of a regional waterborne transit network, identifying potential routes, docking locations, infrastructure needs, and integration with existing transit systems. The Feasibility Study aims to enhance mobility, reduce roadway congestion, and provide sustainable waterborne transportation options. The City will utilize the Feasibility Study’s findings to develop its long-term water taxi service, ensuring alignment with the broader regional vision for waterborne transit.

On March 19, 2025, the City Commission authorized the issuance of RFQ 2025-284-ND for a water taxi service. RFQ responses were due and received on May 5, 2025. The City received proposals from three (3) vendors: Aqua-Jet Miami LLC d/b/a Aqua Party Boat, Code Name E-Lixr Inc., and Water Taxi of Fort Lauderdale LLC.

On May 23, 2025, an evaluation committee appointed by the City Manager convened to review and rank the proposals received. The evaluation process resulted in the ranking of proposers in the following order:

1st ranked - Water Taxi of Fort Lauderdale LLC 2nd ranked - Aqua-Jet Miami LLC d/b/a Aqua Party Boat 3rd ranked - Code Name E-Lixr Inc.

ANALYSIS

On June 25, 2025, the City Commission adopted Resolution No. 2025-33708, authorizing the Administration to enter into negotiations with Water Taxi of Fort Lauderdale LLC, as the top- ranked proposer; further, if the Administration is not successful in negotiating an Agreement with Water Taxi of Fort Lauderdale LLC, authorizing the Administration to enter into negotiations with Aqua-Jet Miami LLC d/b/a Aqua Party Boat, as the second-ranked proposer; further, if the Administration is not successful in negotiating an Agreement with Aqua-Jet Miami LLC d/b/a Aqua Party Boat, authorizing the Administration to enter into negotiations with Code Name E-Lixr Inc., as the third-ranked proposer. The Resolution provided that the final negotiated agreement be subject to the prior approval of the City Commission.

As directed by the City Commission, the Administration immediately commenced negotiations with Water Taxi of Fort Lauderdale LLC (“Water Taxi of Fort Lauderdale”). Additionally, to support the City in developing a sustainable long-term waterborne transit service, the Administration engaged KPFF Consulting Engineers (“KPFF”), a nationally recognized transportation and engineering consultant with specific expertise in waterborne transportation, ferry service planning, and transit integration. KPFF has advised multiple municipalities and regional agencies across the United States on marine-based transit systems, including vessel selection, operations planning, and concessionaire agreements. KPFF’s involvement in the negotiation process ensured that the City had access to technical expertise in service design, cost modeling, and contract drafting, while also providing a neutral third-party perspective to align the operator’s proposal with the City’s transportation goals and financial constraints.

The Administration began discussions with Water Taxi of Fort Lauderdale based on an “ideal” service scenario that assumed two (2) vessels operating seven (7) days a week, 365 days a year, with 30-minute service frequency (headways) for approximately 12 hours daily, and at no cost (i.e. free) to passengers. The water taxi service would operate across Biscayne Bay between Maurice Gibb Memorial Park (1790 Purdy Avenue) in Miami Beach and the Venetian Marina & Yacht Club (1635 North Bayshore Drive) in Miami, with ambassadors staffed at both dock locations during all operating hours. This scenario would provide consistent reliability and coverage connecting Miami Beach and Miami, in close proximity to existing mass transit services in both cities. However, the total annual operating cost of the service under this scenario would be approximately $2 million which significantly exceeds the City’s available budget allocation of $1.2 million in Fiscal Year (“FY”) 2026 (comprised of a $600,000 grant from the Florida Department of Transportation (“FDOT”) and a $600,000 City match).

Given the financial constraints, the negotiations subsequently centered on creating a commuter- focused water taxi service plan that could be implemented within the available budget in FY 2026. Tailored adjustments to service frequency (headways), vessel assignments, and operating hours were considered to ensure a reliable water taxi service that remained both attractive to commuters and financially viable within the available budget of $1.2 million in FY 2026. A total of five (5) different water taxi service scenarios were developed and reviewed during the contract negotiations among the City staff, KPFF, and Water Taxi of Fort Lauderdale.

With the support of KPFF, the Administration negotiated a “fare free” water taxi service plan consisting of two (2) 40-foot vessels with a 55-passenger capacity, operating Monday through Friday with an afternoon peak period service frequency (headways) of 30 minutes and ambassador staffing at the Maurice Gibb Memorial Park dock. This approach ensures a reliable commuter-focused water taxi service while remaining within the available budget.

Below is an image of the proposed cross-bay water taxi route and a photo of the program vessel.

The negotiations with Water Taxi of Fort Lauderdale also accounted for the City’s goal of providing a special event water taxi service during Art Week 2025, operating between Miami Beach and Downtown Miami. The Administration originally intended to present the long-term concession agreement which included Art Week 2025 service to the City Commission at the October 29, 2025 meeting, ahead of Art Week; however, due to the cancellation of the October 29 City Commission meeting, the item could not be presented in advance of Art Week.

To avoid delaying preparations for the Art Week 2025 water taxi service, the Administration executed a separate Memorandum of Understanding (“MOU”) with Water Taxi of Fort Lauderdale for a one (1)-week special event service from Monday, December 1, 2025 through Sunday, December 7, 2025. Under this MOU (Attachment B), Water Taxi of Fort Lauderdale provided expanded hours, additional vessels during peak periods, ambassadors at both dock locations, and fare-free service operating between Maurice Gibb Memorial Park and the Venetian Marina & Yacht Club. The total cost of approximately $200,000 was funded through a separate Art Week budget allocation and did not impact the $1.2 million operating budget for the long-term commuter- focused service.

As part of this agenda item, the Administration is requesting that the City Commission retroactively approve the Art Week 2025 Water Taxi MOU, in addition to approving the negotiated long-term concession agreement with Water Taxi of Fort Lauderdale.

Below is the tentative schedule of the negotiated long-term water taxi service, premised on an anticipated launch date of January 20, 2026. It is important to note that the City Manager has the authority to modify the schedule, provided that such changes do not increase the total number of service hours.

Depart Venetian 700 800 900 1000 1100 1200 1300 1400 1500 1600 1630 1700 1730 1800 1830 1900 Arrive Purdy 720 820 920 1020 1120 1220 1320 1420 1520 1620 1650 1720 1750 1820 1850 1920 Depart Arrive Purdy Venetian 730 750 830 850 930 950 1030 1050 1130 1150 1230 1250 1330 1350 1430 1450 1530 1550 1630 1650 1700 1720 1730 1750 1800 1820 1830 1850 1900 1920 1930 1950

Boat A Boat A Boat A Boat A Boat A Boat A Boat A Boat A Boat A Boat A Boat B Boat A Boat B Boat A Boat B Boat A

The service during FY 2026 is designed to build reliability, test ridership demand, and position the City for potential future expansion, including north-south service along the west coast of the City and service along the Indian Creek waterway, contingent on securing additional funding, including from Miami-Dade County, City of Miami, and/or state/federal grant programs.

Following are the key terms of the long-term water taxi service agreement (Attachment A) with Water Taxi of Fort Lauderdale:

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Term: Five (5) years with two (2) optional one (1)-year extensions. Service Days: Monday through Friday (excluding national holidays). Schedule/Headways: o Morning peak, mid-day, and early afternoon (7:00 a.m. to 4:30 p.m.): 60-minute service frequency (1 vessel).

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Afternoon/evening peak (4:30 p.m. to 7:20 p.m.): 30-minute service frequency (2 vessels). Stops: Maurice Gibb Memorial Park (1790 Purdy Avenue) in Miami Beach and the Venetian Marina & Yacht Club (1635 North Bayshore Drive) in Miami. Vessel: Two (2) 40-foot vessels with a 55-passenger capacity. Cost: o $1,194,904 during FY 2025/26 (January 20, 2026 – September 30, 2026). o $1,442,383 for a full year (12 months) of service Special Event Service: The agreement includes a provision for optional special event water taxi service, including expanded hours, additional vessels, and enhanced staffing for high-impact events designated by the City. Branding and Advertising: Vessel branding to be designed by the City. The operator may solicit advertising, subject to City review/approval. Revenue sharing is subject to further negotiations. Additionally, the water taxi service will operate under the “Miami Beach Water Taxi” name/brand, with the vendor establishing a new company under this identity. Performance Oversight/Penalties: Monthly performance meetings, submittal of monthly ridership reports, vessel maintenance reporting obligations, and performance penalties based on non-compliance with on-time performance goals. Ambassadors: Required at all dock locations during hours of operation. Service Adjustments/Expansion: Agreement allows for adjustments and expansion of service, including, but not limited to additional service hours, additional vessels and routes. All changes must be reflected in a written amendment executed by Water Taxi of Fort Lauderdale and the City Manager. Any change that increases the City’s appropriation for services shall be subject to approval by the City Commission. Termination For Convenience: Agreement provides for termination by the City, through the City Manager, at any time and without cause, by providing written notice to Water Taxi of Fort Lauderdale. Such termination becomes effective within thirty (30) days of receipt, after which the City is discharged from all liabilities, duties, and terms arising out of or by virtue of the agreement.

FISCAL IMPACT STATEMENT

The total cost of the water taxi service during FY 2026 is just under $1.2 million, consistent with the approved FY 2026 “one-time” operating budget enhancement of $600,000 to match a $600,000 FDOT grant. The water taxi service plan for FY 2025/26 was specifically designed to align with the approved budget while prioritizing a commuter-focused model that balances operational reliability with financial sustainability. This approach ensures the program can be delivered without requiring additional funding appropriations beyond what has already been allocated. The cost for a full year (12 months) of service is $1,442,383.

The Administration will continue pursuing state/federal grant funding for future years as well as collaborating with external agencies, including the City of Miami, Miami-Dade County, and the TPO to secure additional funding to ensure the long-term expansion and viability of the City’s water taxi service.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

$600,000 / 106-9615-000349-30-403-529-00-00-00-

$600,000 - FDOT grant awarded to the City for the water taxi service in FY 2026 (pending budget account code).

CONCLUSION

The Administration recommends executing an agreement with Water Taxi of Fort Lauderdale due to their proposal demonstrating the greatest alignment with the City’s goals. Water Taxi of Fort Lauderdale brings an established operational presence in South Florida, familiarity with regulatory requirements and waterways, the ability to mobilize vessels and staff, and a demonstrated history of providing high-quality service for large-scale events, including Art Week 2024 and 2025 and the Miami International Boat Show. Their commitment to delivering a commuter-focused service plan tailored to the City’s budget and goals (e.g., free fares, ambassadors, branding standards), combined with their willingness to incorporate City branding, revenue-sharing advertising provisions, and provide potential future expansions, ensures a strong partnership framework.

With KPFF’s technical support in validating the negotiated service plan and financial structure, the Administration is confident that Water Taxi of Fort Lauderdale offers the most reliable and cost-effective path forward for establishing a long-term cross-bay commuter water taxi service between Miami Beach and Miami.

Based upon the favorable negotiated terms, the Administration recommends that the City Commission adopt the Resolution, approving the material terms of the agreement, pursuant to RFQ 2025-284-ND for Water Taxi Service; and authorizing the City Manager and City Clerk to execute the agreement with Water Taxi of Fort Lauderdale.

Furthermore, given the October 29, 2025 City Commission meeting was canceled, the Administration executed a separate Memorandum of Understanding (MOU) with Water Taxi of Fort Lauderdale to provide special event water taxi service during Art Week 2025. This ensured enhanced cross-bay service could be delivered as planned, with expanded hours, increased vessel deployment, and ambassador staffing to support the event. As part of this item, the Administration is requesting that the City Commission retroactively approve the Art Week 2025 MOU in addition to approving the long-term concession agreement with Water Taxi of Fort Lauderdale.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s): N/A

Department

Procurement

Sponsor(s)

Mayor Steven Meiner

Co-sponsor(s)

Commissioner Laura Dominguez

Condensed Title

*Approve RFQ 2025-284-ND, Water Taxi Service. (Meiner/Dominguez) TR/PR