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
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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)
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F: \RHCD \$ALL \ECON \$ALL\ASSET\210 -2nd Street \ECOMB Amendment 1.FINAL.doc
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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 -
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A GENDA STEM
MIAMIBEACH
DATE /0:17-10
IA IBEA
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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