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2010-27371 ResoRESOLUTION NO. 2010-27371 A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 1 TO THE MANAGEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND ALTOS DEL MAR SCULPTURE PARK, INC. FOR THE OPERATION OF A SCULPTURE PARK IN ALTOS DEL MAR PARK; SAID AMENDMENT DEFINING THE "POSSESSION DATE" AS THE DATE THE CITY ALLOWS ADMSP TO ENTER UPON AND TAKE POSSESSION OF THE PREMISES; AND, ACCORDINGLY, FURTHER PROVIDING THAT ADMSP'S OBLIGATIONS UNDER THE AGREEMENT WITH RESPECT TO MAINTENANCE OF THE PREMISIS AND ADMSP'S OBLIGATION TO PROVIDE GENERAL LIABILITY COVERAGE FOR THE PREMISES, SHALL NOT COMMENCE UNTIL SAID POSSESION DATE. WHEREAS, on October 17, 2007, the Mayor and City Commission approved the issuance of Request for Proposals No. 02-07/08 to establish a Cultural Arts Themed and/or Other Passive Recreational Activities Program in Altos Del Mar Park, located on Collins Avenue, between 76th and 77th Streets (the RFP); and WHEREAS, on July 16, 2008, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the successful proposer, Altos Del Mar Sculpture Park, Inc, snot-for- profit Florida corporation (ADMSP); and WHEREAS, on June 3, 2009, the City Commission adopted Resolution No. 2009- 27100, which approved and authorized the Mayor and City Clerk to execute a Management Agreement with ADMSP for the establishment, operation, and maintenance of a cultural arts themed program, to be known as the "Altos del Mar Sculpture Park" (the Agreement) WHEREAS, pursuant to the Agreement, ADMSP is required to provide the City with proof of certain required insurance coverage, including general liability coverage; and WHEREAS, ADMSP is also required to commence maintenance of the proposed sculpture park area (as such site is delineated in the Agreement and hereinafter referred to as the site) upon commencement of the Term of the Agreement; which term commenced on June 3, 2009; and WHEREAS, subsequent to the parties' execution of the Agreement and commencement of the Term, ADMSP advised the City that it was not its intention to assume control of the site, and therefore assume the aforestated insurance and maintenance requirements, until ADMSP's commencement of construction for the sculpture park Improvements (as defined in the Agreement); and WHEREAS, accordingly, ADMSP has requested that the Agreement be amended,; notwithstanding, ADMSP has currently obtained the required liability insurance (which was reviewed and approved by the City's Risk Manager) and is currently providing routine maintenance of the site (as currently required under the Agreement); and WHEREAS, the Neighborhoods and Community Affairs Committee reviewed ADMSP's request at its February 16, 2010 meeting, and recommended in favor of the requested amendment; and WHEREAS, the City and ADMSP have negotiated the following Amendment No. 1 to the Agreement. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute the attached Amendment No. 1 to the Management Agreement between the City of Miami Beach, Florida and Altos Del Mar Sculpture Park, Inc. for the Operation of a Sculpture Park in Altos Del Mar Park; said amendment defining the "Possession Date" as the date ADMSP is allowed to take possession of the Premises; and, accordingly, further providing that ADMSP's obligations under the Agreement with respect to maintenance of the Premises, and ADMSP's obligation to provide general liability coverage, shall not commence until said Possession Date. PASSED AND ADOPTED this 14th day of April , 2010. ATTEST: ~. CITY CLERK ~' ~ -e ,-% MAYO JMG/HMF/mas T:\AGENDA~2010\April 14\Regular\ADMSP Amendment No.1 RESO.doc APPROVED AS TO FORM & LANGUAGE tk FOR EXECUTION ~ 5 to ~~ City orney (~ Date ~` COMMISSION ITEM SUMMARY Condensed Title: A Resolution of the Mayor and the City Commission of the City of Miami Beach, Florida, authorizing Amendment No. 1 to the Management Agreement between the City of Miami Beach, Florida and Altos Del Mar Sculpture Park, Inc. for the operation of a sculpture park in Altos Del Mar Park; amending Section 9.7.8.1, of the Agreement, entitled Construction Commencement/ADMSP's Right to Terminate. Ke Intended Outcome Su orted: Increase satisfaction with family friendly recreational activities. Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey shows that 73.3% of residents and 58.7 % of businesses feel the City has the "right amount" of cultural events available. Residents also attend cultural activities (such as art shows, film festivals and live performances) 10.61 times per year on average. The same survey shows that residents attend museums on avers a 6.85 times er ear. However, 29.3% of residents also feel the Cit has "too few' museums. Issue: Shall the City Commission approve an amendment to the Management Agreement Between the City and ADMSP? Item Summa (Recommendation: On October 17, 2007, the Mayor and City Commission approved the issuance of Request for Proposals No. 02-07/08 to establish a Cultural Arts Themed and/or Other Passive Recreational Activities Program in Altos Del Mar Park, located on Collins Avenue, between 76th and 77th Streets (the RFP). On July 16, 2008, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the successful proposer, Altos Del Mar Sculpture Park, Inc, snot-for- profit Florida corporation (ADMSP). The Administration negotiated a Management Agreementwith ADMSP whereby theywould design, develop, operate and maintain a sculpture park within a portion of Altos Del Mar Park (to be known as the Altos Del Mar Sculpture Park), in accordance with its response to the RFP. On June 3, 2009, the City Commission adopted Resolution No. 2009-27100 which approved and authorized the Mayor and City Clerk to execute a Management Agreement with ADMSP. The Agreement has an initial term often (10) years, with two (2) additional five (5) year renewal options, at the City's sole and absolute discretion. The initial Term of the Agreement commenced on June 3, 2009 and expires on June 3, 2019. Under the terms of the Agreement, ADMSP would be responsible for all ongoing maintenance of the Sculpture Park, including the Proposed Improvements. It would also be responsible for operation and management of the Park for its intended purposes. Upon execution of the Agreement ADMSP was required to provide the City with proof of Insurance, which includes general liability coverage, as required under section 20.1 of the Agreement. Additionally, the Agreement required ADMSP to begin maintaining the park, which at this time would be limited to landscape maintenance and litter control. ADMSP advised the City that it was nevertheir intention to assume control of Altos Del Mar Park immediately and, although never discussed during negotiations, they assumed their responsibilities asdelineated inthe Agreement would commence once they obtained building permits. As this specific subject was never discussed with ADMSP it seems there was a misunderstanding in this regard. After extensive discussion on the subject, ADMSP did purchase the required insurance which was reviewed and approved by the City's Risk Manager. Additionally, they have also begun routine maintenance of the site. However, ADMSP would still prefer not to assume control of the site until such time that a building permit is issued. ADMSP is of this opinion, in part because the Park remains an open public park where volleyball and soccer, among other things, are played on a daily basis. To that end, ADMSP has requested the City consider amendin the Mana ement A reement to reflect this chan e. Board Recommendation: recommended in favor of the requested amendment. Financial Information: Source of Funds: Amount Account Approved 1 Financial Impact Summary: The proposed amendment requires the City to assume maintenance (mowing and litter control) of premises. This cost is estimated at $5,500 per year. Additionally, the City will assume all liability on the property until ADMSP obtains t buildin ermit and takes over control of the ro ert . Ci Clerk's Office Le islative Trackin Max Sklar, Ext 6116 Si n-Offs: Department Director ssistant City Manager City Manager J V 1I ~! V 1 ~ ~ ~1~7~ H AGE~6DA 6TEM /G/ "7~L DATE m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Ma r Matti Herrera Bower and Members of the City Commission ~, FROM: JO a M. Gonzalez, City Mang r DATE: April 14, 2010 SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 1 TO THE MANAGEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND ALTOS DEL MAR SCULPTURE PARK, INC. FOR THE OPERATION OF A SCULPTURE PARK IN ALTOS DEL MAR PARK; SAID AMENDMENT DEFINING THE "POSSESSION DATE" AS THE DATE THE CITY ALLOWS ADMSP TO ENTER UPON AND TAKE POSSESSION OF THE PREMISES; AND, ACCORDINGLY, FURTHER PROVIDING THAT ADMSP'S OBLIGATIONS UNDER THE AGREEMENT WITH RESPECT TO MAINTENANCE OF THE PREMISIS ,AND ADMSP'S OBLIGATION TO PROVIDE GENERAL LIABILITY COVERAGE FOR THE PREMISES, SHALL NOT COMMENCE UNTIL SAID POSSESION DATE. ADMINISTRATION RECOMMENDATION The Administration recommends that the Mayor and Commission approve an Amendment to the Management Agreement between the City and Altos Del Mar Sculpture Park, Inc. BACKGROUND On October 17, 2007, the Mayor and City Commission approved the issuance of Request for Proposals No. 02-07/08 to establish a Cultural Arts Themed and/or Other Passive Recreational Activities Program in Altos Del Mar Park, located on Collins Avenue, between 76th and 77th Streets (the RFP). On July 16, 2008, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the successful proposer, Altos Del Mar Sculpture Park, Inc, snot-for-profit Florida corporation (ADMSP). The Administration negotiated a Management Agreement with ADMSP whereby they would design, develop, operate and maintain a sculpture park within a portion of Altos Del Mar Park (to be known as the Altos Del Mar Sculpture Park), in accordance with its response to the RFP. On June 3, 2009, the City Commission adopted Resolution No. 2009-27100 which approved and authorized the Mayor and City Clerk to execute a Management Agreement with ADMSP. The Agreement has an initial term of ten (10) years, with two (2) additional five (5) year renewal options, at the City's sole and absolute discretion. The initial Term of the Agreement commenced on June 3, 2009 and expires on June 3, 2019. ADMSP's proposal includes the design, development, construction and, thereafter, operation and maintenance, of a public sculpture park (hereinafter referred to as the Sculpture Park). The Sculpture Park would display, in changing exhibitions, major works of sculpture from internationally established sculptors of the 19th, 20th, and 21st centuries. The artwork would be displayed in three (3) distinct landscaped areas--referred to, respectively, in ADMSP's proposal as the 1) "Dunefields;" 2) Maritime Garden; and, 3) "Tree Allees." These are intended to serve as natural "outdoor galleries," and would Altos Del Mar Sculpture Park April 14, 2010 City Commission Meeting Page 2 of 2 enable visitors to navigate freely through exhibits, enjoying the natural beauty created by the landscaped areas, as well as the beauty of the works of art themselves. ADMSP would be responsible for all costs associated with design, development, construction, operation, and maintenance of the Sculpture Park--including, without limitation, construction of all Proposed Improvements (as hereinafter defined). ADMSP has retained the services of ArquitectonicaGEO to create the proposed Sculpture Park Design. ADMSP confirmed that a capital investment of $2.5 million is needed upfront and $1.7 million is needed for operating costs yearly. They are currently still meeting with potential sponsors/donors to fund these expenses. Under the terms of the Agreement, ADMSP would be responsible for all ongoing maintenance of the Sculpture Park, including the Proposed Improvements. It would also be responsible for operation and management of the Park for its intended purposes. Upon execution of the Agreement ADMSP was required to provide the City with proof of Insurance, which includes general liability coverage, as required under section 20.1 of the Agreement. Additionally, the Agreement required ADMSP to begin maintaining the park, which at this time would be limited to landscape maintenance and litter control. ADMSP advised the City that it was never their intention to assume control of Altos Del Mar Park immediately and, although never discussed during negotiations, they assumed their responsibilities as delineated in the Agreement would commence once they obtained building permits. As this specific subject was never discussed with ADMSP it seems there was a misunderstanding in this regard. After extensive discussion on the subject, ADMSP did purchase the required insurance which was reviewed and approved by the City's Risk Manager. Additionally, they have also begun routine maintenance of the site. However, ADMSP would still prefer not to assume control of the site until such time that a building permit is issued. ADMSP is of this opinion, in part because the Park remains an open public park where volleyball and soccer, among other things, are played on a daily basis. To that end, ADMSP has requested the City consider amended the Management Agreement to reflect this change. The Neighborhoods and Community Affairs Committee reviewed this request at their February 16, 2010 meeting and unanimously recommended in favor of the requested amendment. The City and ADMSP have negotiated the attached Amendment No. 1 to the Management Agreement for the aforestated purposes. FISCAL IMPACT STATEMENT The proposed amendment requires the City to assume maintenance (mowing and litter control) of the premises. This cost is estimated at $5,500 per year. Additionally, the City will assume all liability on the property until ADMSP obtains their building permit and takes over control of the property. CONCLUSION The Administration recommends that the Mayor and Commission approve an Amendment to the Management Agreement between the City and ADMSP to reflect mutually agreed-upon amendment. Attachments T:WGENDA\2010Wpril 14\Regular~.4DMSP Mgmt Agmnt Amendment Memo.doc.RTF