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94-21029 RESO RESOLUTION NO. 94-21029 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN EXTENSION OF THE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND NATIONAL DATA AND COMMUNICATIONS, INC.(NATIONAL DATA), PENDING NEGOTIATIONS BETWEEN THE CITY AND NATIONAL DATA FOR THE ACQUISITION OF THE EQUIPMENT PURSUANT TO THE EXERCISE OF THE CITY'S OPTION TO PURCHASE SAME UNDER THE AGREEMENT; SAID EXTENSION COMMENCING ON FEBRUARY 9, 1994, AND ENDING ON APRIL 30, 1994. WHEREAS, pursuant to Request for Proposal 106-85/90 for providing Voice and Data Telecommunications Services at the city of Miami Beach Convention Center, the Mayor and City Commission approved Resolution No. 86-18703, authorizing the Mayor and City Clerk to execute an Agreement between the City and the successful proper, Future Telecommunications, Inc. (the Agreement) and WHEREAS, on July 13, 1988, the Mayor and City commission approved Resolution No. 88-19294, approving the assignment of the aforestated Agreement from Future Telecommunications, Inc. to Miami Communications, Inc.; and WHEREAS, National Data and Communications, Inc. (National Data) is the successor in interest to Miami Communications, Inc.; and WHEREAS, the Administration has entered into negotiations for the acquisition of the voice and data telecommunications equipment (the Equipment), pursuant to its option to purchase same under the Agreement; and WHEREAS, the initial term of the Agreement will expire on February 9, 1994; and WHEREAS, the Administration has not concluded its negotiations with National Data, and would therefore recommend that the initial term of the Agreement be extended to April 30, 1994 in order for said negotiations to continue and conclude; and WHEREAS, in the event the Administration is not able to effectively negotiate a satisfactory purchase of the Equipment, then the Agreement between the City and National Data will effectively expire on April 30, 1994, with no further options to renew thereunder, and the City will thereupon consider issuing a new Request for Proposal for providing Voice and Data Telecommunications Services at the City of Miami Beach Convention Center. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and ci ty Commission herein approve an extension of the Agreement between the City of Miami Beach and National Data and Communications, Inc., pending negotiations between the City and National Data for the acquisition of the Equipment pursuant to the exercise of the City's option to purchase same under the Agreement; said extension commencing on February 9, 1994, and ending on April 30, 1994. PASSED and ADOPTED this 1994. ATTEST: ~~J ~,R~.~ CITY CLERK jm:c:\wp51\data\ndc.res FORM APPROVED lEGAL DEPt. . ,,' ) By \. /t712;/',L)1- /' (~~;;~'. .. -- / . r__~ / . .../ - / Date /// /7/:7'7 2 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. 52-9Y TO: Mayor Seymour Gelber and Members of the City Commission DATE: January 19, 1994 FROM: SUBJECT: EXTENSION OF AGREEMENT WITH NATIONAL DATA & COMMUNICATIONS, INC. UNTIL APRIL 30, 1994 TO GIVE THE CITY OF MIAMI BEACH THE TIME TO CONSIDER SEVERAL OPTIONS WITH REGARDS TO THE AGREEMENT WITH THIS COMPANY ADMINISTRATION RECOMMENDATION: The City Administration recommends that the City Commission approve an extension of the Agreement with National Data & Communications until April 30, 1994 to provide communications services to the users of the Miami Beach Convention Center. The City of Miami Beach is considering several options that will require this extension of time. BACKGROUND: City Commission Resolution No. 88-19294 authorized the Mayor and the City Clerk to approve the assignment of the original Agreement with Future Telecommunications, Inc. to Miami Communications, Inc. (National Data & Communications, Inc.) in July 1988. The original Agreement commenced February 10, 1986 and ended February 9, 1991 for a five (5) year term. Resolution No. 89-19806 extended the original Agreement for two (2) additional years, until February 9, 1994. ANALYSIS The City was willing to extend the term for the two years, provided that the Agreement was amended to provide: 1. That Provider shall covenant and agree not to further voluntarily lien or encumber the Equipment or the Cabling. 2. That Provider shall maintain a Performance Bond in the form of a Letter of Credit, of at least a twelve (12) month initial term, in the amount of $100,000. 3. Provider shall provide the City with the Agreement and Release of Walter P. Loebenberg with respect to the rights of the City to exercise its Purchase Option notwithstanding advances from Mr. Loebenberg regardless of when made, so that Provider can convey free and clear to City in the event City exercises its Purchase Option. If the City chooses to exercise its Purchase Option now, the estimated cost of all the equipment involved is $585,000. The City believes that by purchasing the equipment, it can maximize revenues and improve the quality of service and equipment in the Convention Center. CONCLUSION: Since the Agreement expires in February 1994, an extension of the Agreement is needed in order to provide the City with adequate time 31 to look at alternatives regarding the Agreement with National Data & Communications, Inc. The City is also working with the Topa and Convention Center Expansion Authority (T.C.C.E.A.) while considering the alternatives available. AGENDA R-1- F RMC:EC:JMF:ojr ITEM . J-13 -'9~ DATE