Loading...
Amendment to Lease Agmt w/ ECOMB l / 27 /to G7 /`1 a l U X53 2 AMENDMENT NO. 1 TO THAT CERTAIN LEASE AGREEMENT BETWEEN CITY OF MIAMI BEACH, FLORIDA AND ECOMB, INC. THIS AMENDMENT NO. 1 TO THE LEASE AGREEMENT made this 27 day of October, 2010, and effective November 1, 2010 (the "Effective Date "), between the CITY OF MIAMI BEACH, a municipal corporation of the State of Florida (hereinafter called "City "), having its principal address at 1700 Convention Center Drive, Miami Beach, Florida, 33139, and ECOMB, INC., a Florida not - for - profit corporation having its principal address at 210 Second Street, Miami Beach, Florida 33139 (hereinafter called "Tenant"). WITNESSETH WHEREAS, on December 9, 2009, the Mayor and City Commission adopted Resolution No. 2009 - 27283, approving a Lease Agreement between the City of Miami Beach (City) and ECOMB, Inc. (ECOMB) for use of approximately 1,251 square feet of City -owned property, located at 210 Second Street, Miami Beach, Florida; and WHEREAS, the approved Lease Agreement was, for an initial term of three years and sixteen days, commencing on December 15, 2009, with one additional three year renewal term at the City's sole discretion; and WHEREAS, the Lease Agreement requires ECOMB to reimburse the City a monthly flat fee for water and sewer costs; and WHEREAS, ECOMB requested an amendment to its current Lease Agreement to reduce the flat fee reimbursement amount for water and sewer costs; and WHEREAS, in response to ECOMB's request, City staff reviewed the water and sewer costs and determined that ECOMB's consumption appeared to be Tess than the costs previously estimated lease negotiation purposes; and WHEREAS, on September 15, 2010, the Mayor and City Commission referred ECOMB's request to the Finance and Citywide Projects Committee (F &CPC) for discussion; and WHEREAS, at its October 14, 2010 meeting, the F &CPC recommended reducing ECOMB's monthly flat fee reimbursement amount and also recommended that the Lease Agreement be amended to reflect said reduction. NOW THEREFORE, in consideration of the premises and the mutual covenants and conditions herein contained and other good and valuable consideration, the receipt 1 and adequacy of which are hereby conclusively acknowledged, it is agreed by the parties hereto to amend the Lease Agreement, as follows: 1. Section 13.6, entitled "Tenant's Responsibilities for Utilities" is amended as follows (deleted language and inserted language underlined): 13.6 Tenant's Responsibilities for Utilities. Tenant is solely responsible for and shall promptly pay when due all charges for electricity, gas, cable, telephone, internet, janitorial garbage service and any other utility service provided to the Demised Premises, including, without limitation, all hook -up fees and impact fees. Notwithstanding the preceding paragraph, Tenant agrees to reimburse the City a flat fee for water and sewer costs, in the amount of Two -Hunk Sixty One Dollars and 7400/100 ($200.0061.74) per month. The City reserves the right, at its sole discretion, to adjust the monthly flat fee paid by Tenant at any time during the Term, upon thirty (30) days prior written notice to Tenant. In addition to other rights and remedies hereinafter reserved to the City, upon the failure of Tenant to pay for such utility services (as contemplated in this Subsection 13.6) when due, the City may elect, at its sole discretion, to pay same, whereby Tenant agrees to promptly reimburse the City upon demand. In no event, however, shall the City be liable, whether to Tenant or to third parties, for an interruption or failure in the supply of any utilities or services to the Demised Premises. 2. Except as amended hereby, the Lease Agreement remains in full force and effect and is reconfirmed for all purposes. 3. .This Amendment No. 1 to the Lease Agreement may be executed in counterparts and facsimile signatures are as effective as an original signature and constitute valid delivery thereof. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 2 IN WITNESS WHEREOF, the parties hereto have caused their names to be signed and their seals to be affixed, all as of the day and year first above written, indicating their agreement. Attest: • -. CITY OF MIAMI BEACH, FLORIDA • -- GULL /■o._ .1411117. _ Robert Parcher, CITY CLERK Matti Herrera Bower, MAYOR Attest: ECOMB, INC. Signature Signature (Print Name & Title) (Print Name & Title) APPROVED AS TO FORM & LANGUAGE CORPORATE SEAL & FOR EXECUTION (affix seal here) om + s e F: \RHCD \$ALL \ECON \$ALL\ASSET\210 -2nd Street \ECOMB Amendment 1.FINAL.doc I 3 1 COMMISSION ITEM SUMMARY Condensed Title: Resolution approving and authorizing the Mayor and City Clerk to execute Amendment No. 1 to the Lease Agreement between the City and ECOMB, Inc., for use of 1,251 SF of the City -owned property located at 210 Second Street; said Amendment providing for a new reimbursement fee of water and sewer costs. Key Intended Outcome Supported: Increase resident satisfaction with the level of services and facilities. Supporting Data (Surveys, Environmental Scan, etc.): Approximately 40% of retail businesses surveyed, rank Miami Beach as one of the best places to do business and 61 % of the same group would recommend Miami Beach as a place to do business. Issue: Shall the City Commission approve Amendment No. 1 to the Lease Agreement? Item Summary /Recommendation: On December 9, 2009, the Mayor and City Commission adopted Resolution No. 2009 - 27283, approving a Lease Agreement between the City of Miami Beach (City) and ECOMB, Inc. (ECOMB) for use of approximately 1,251 square feet of City -owned property. The approved Lease Agreement was for an initial term of three years and sixteen days, commencing on December 15, 2009, with one additional three year renewal term at the City's sole discretion. The current Lease Agreement requires ECOMB to pay Rent, in the amount of $1.20 annually, as well as requires ECOMB to reimburse the City a flat fee for water and sewer costs, in the amount $200.00 per month. ECOMB requested an amendment to its current Lease Agreement to address the flat fee for water and sewer. In response to ECOMB's request, staff has reviewed ECOMB's water and sewer costs and determined that ECOMB's consumption appears to be less than the costs previously estimated for lease negotiation purposes. At its October 14, 2010 meeting, the Finance & Citywide Projects Committee discussed ECOMB's request and recommended reducing the monthly flat fee reimbursement amount to $61.74, and also recommended that the Lease Agreement be amended to reflect the reduced reimbursement cost. Advisory Board Recommendation: Finance & Citywide Projects Committee: October 14, 2010 Financial Information: Source of Funds: Amount Account n/a 1 n/a Financial Impact Summary: City Clerk's Office Legislative Tracking: Anna Parekh, extension 7193 Sign -Offs: Anna Parekh, Department Hilda M. Fernandez, Assistant City Jorge M. Gonzalez, City Director Manag Manage AP h��1 HF -�� -�� -a L ' JM - T:\AGENDA\2010 \October 27\Consent\ECOMB Amendment 1.SUM.doc A GENDA STEM MIAMIBEACH DATE /0:17-10 IA IBEA M CH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: May • atti errera Bower and Members of the City Commission 4 ,`►/ FROM: Jorg . Gonzalez, City Manager DATE: October 27, 2010 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN AMENDMENT NO. 1 TO THAT CERTAIN LEASE AGREEMENT BY AND BETWEEN THE CITY AND ECOMB, INC., DATED DECEMBER 9, 2009, FOR THE LEASE OF APPROXIMATELY 1,251 SQUARE FEET OF CITY - OWNED PROPERTY, LOCATED AT 210 SECOND STREET, MIAMI BEACH, FLORIDA; SAID AMENDMENT PROVIDING FOR A NEW REIMBURSEMENT FEE OF WATER AND SEWER COSTS; FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AMENDMENT ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOMES SUPPORTED Increase resident satisfaction with the level of services and facilities. BACKGROUND On December 9, 2009, the Mayor and City Commission adopted Resolution No. 2009 - 27283, approving a Lease Agreement between the City of Miami Beach (City) and ECOMB, Inc. (ECOMB) for use of approximately 1,251 square feet (comprised of 210 SF of office space and 1041 SF of exterior covered space) of City -owned property (the Demised Premises), located at 210 Second Street, Miami Beach, Florida. The approved Lease Agreement was for an initial term of three years and sixteen days, commencing on December 15, 2009, with one additional three year renewal term at the City's sole discretion. The current Lease Agreement requires ECOMB to pay Rent, in the amount of $1.20 annually, as well as requires ECOMB to reimburse the City a flat fee for water and sewer costs, in the amount $200.00 per month. Additionally, ECOMB is solely responsible for the payment of electricity costs and any other utility service charges provided to the Demised Premises. ECOMB requested an amendment to its current Lease Agreement to address the flat fee for water and sewer. On September 15, 2010, the Mayor and City Commission referred ECOMB's request to the Finance and Citywide Projects Committee for discussion. ANALYSIS The flat fee for water and sewer was calculated at the time of the lease negotiation, and was agreed to by ECOMB. Because the Demised Premises was vacant at the time, and the Water and Sewer service for the space to be leased by ECOMB was tied to the service for the adjacent dog park, this flat fee was developed as a proportionate cost. Commission Memorandum ECOMB, Inc. October 27, 2010 Page 2 of 2 ECOMB recently informed the City that it believed it was paying more than its proportionate share of costs for water and sewer, and requested that City _staff look into the matter. In response to ECOMB's request, staff has again reviewed ECOMB's water and sewer costs and determined that ECOMB's consumption appears to be less than the costs previously estimated for lease negotiation purposes. Due to the fact that no dedicated water meter exists for the Demised Premises, for this new analysis City staff utilized a national consumption average of 25 gallons per person per day (as determined separately by the EPA and John Hopkins University) for water consumption calculations. ECOMB presently has three employees. Utilizing that average resulted in calculations that ECOMB's operations consume an estimated 2,281 gallons monthly. The City bills a minimum monthly water service charge of $47.96 for any consumption up to 11,000 gallons. Additionally, the City charges a sewer rate of $6.04 per every 1,000 gallons consumed, but does not have a minimum charge for sewer service. Therefore, utilizing the estimated average monthly consumption of 2,281 gallons, at the City's rate of $6.04 per every 1,000 gallons consumed, the monthly cost for sewer service would be $13.78. The $47.96 minimum charge for water combined with the $13.78 for sewer service based on average use calculations results in a monthly estimated cost of $61.74. This would represent a $138.26 monthly reduction in ECOMB's reimbursement costs to the City. In all other respects, the Lease Agreement would remain unchanged. In consideration of this information, the Administration requested that the Finance and Citywide Projects Committee (F &CPC) review ECOMB's request. On September 15, 2010, the Mayor and City Commission referred ECOMB's request tothe F &CPC for discussion. CONCLUSION At its October 14, 2010 meeting, the F &CPC recommended reducing ECOMB's monthly flat fee reimbursement amount for water and sewer costs, and also recommended that the Lease Agreement be amended to reflect said reduction. Language in the lease allows for the City to amend this flat fee, as may be needed. JMG /HMF /AP/rr T:WGENDA\2010 \October 27\Consent \ECOMB Amendment 1.MEM.doc