HomeMy WebLinkAbout2002-25064 Reso
RESOLUTION
2002-25064
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 FIRST
AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND CLEAR
CHANNEL ADSHEL INC., TO CONSTRUCT, OPERATE AND MAINTAIN
DIRECTORY STRUCTURES IN THE LINCOLN ROAD AREA; SAID
AMENDMENT EXTENDING THE AGREEMENT TERM BY TWO (2)
YEARS IN CONSIDERATION OF ADSHEL'S AGREEMENT TO PROVIDE
DIRECTORY AND STREET SIGNAGE ON LINCOLN ROAD.
WHEREAS, the City currently has an Agreeme11f~it~ Clear Channel Adshel Inc" for the
construction, operation and maintenance of dir~-~~ct~res and street name signs on Lincoln
Road, effective through April 18, 2006 (the Agreement); and
WHEREAS, subsequent to entering into the Agreement, the City realized that ten (10)
additional street name signs were needed and requested that Adshel install such signs; and
WHEREAS, the ten (10) additional street name signs will be significantly helpful to both
the pedestrian and vehicular traffic in identifying the street name and the block address designation
for that location; and
WHEREAS, on August 14, 2001, it was determined and ordered by the Historic
Preservation Board that one (1) additional two-sided directory structure be placed at the intersection
of James Avenue and Lincoln Road; and
WHEREAS, the cost for the ten (10) additional signs, including materials, equipment and
labor is $37,500,00 dollars; and
WHEREAS, the City negotiated and agreed with Adshel to extend the Agreement's initial
term by two (2) years in exchange for the cost of installing and maintaining the street name signs and
additional directory structure; and
WHEREAS, the terms of the Agreement provide for the payment on a quarterly basis, from
Adshel to the City, ofthe greater of either two-thousand dollars ($2,000) per structure per year, or
thirty percent (30%) ofthe total net revenues generated by the directory structures for the additional
two years of the initial term,
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 approve and authorize the Mayor and the City Clerk to
execute the attached First Amendment to the Agreement between the City and Clear
Channel Adshel Inc" said Amendment providing for the extension ofthe initial term
of five (5) years, to seven (7) years, and providing for installation and maintenance
often (10) additional street name signs and one (1) additional two sided directory
structure by Clear Channel Adshel Inc" at no cost to the City; and providing for the
payment to the City, on a quarterly basis, of the greater of $2000 per structure per
year or 30% of the total net revenues generated by the directory structures,
PASSED AND ADOPTED this 13th day of ..Nov.
MAYOR
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CITY CLERK
T,IAGENDAI2OO2\NOVI302\REGULAR\LINCOLN RD AMENDMENT RESO.doc
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FORM&lANGUAG8
. FOR E)CECU1'ION
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Ss- Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A resolution approving and authorizing the Mayor and City Clerk to execute First Amendment to the
agreement between the City of Miami Beach and Clear Channel Adshel, Inc., to construct, operate and
maintain directory structures in the Lincoln Road area.
Issue:
Shall the City Commission approve the First Amendment to the agreement with Clear Channel Adshel,
Inc,?
Item Summary/Recommendation:
The City has a contract with Clear Channel Adshellnc.,. for the construction, operation and maintenance of
directory structures and street name signs along Lincoln Road, effective April 18, 2001 through April 18,
2006,
Subsequent to award of the contract to Clear Channel Adshellnc" the City realized that there was a need
to have ten (10) additional street name signs and requested that Clear Channel Adshellnc., install the ten
(10) additional street name signs, These additional street name signs will help both pedestrian and
vehicular traffic in identifying the street name and the block address designation for that location, On
August 14, 2001, it was determined and ordered by the Historic Preservation Board that one (1) additional
directory sign should be placed at the intersection of James Avenue and Lincoln Road.
The City negotiated with Clear Channel Adshellnc., and agreed that extending the contract's initial term by
two (2) years from five (5) to seven (7) years, is in the City's best interest. In return, Clear Channel Adshel
Inc" will install and maintain at no cost to the City, ten (10) additional street name signs and one (1)
additional directory structure. The estimated cost for the ten (10) street signs is $37,500, Also, the City will
continue to receive two (2) additional years of revenue in the amount of $2000 per directory structure per
year or 30% of total net revenue, whichever is greater,
The Administration recommends approval of the resolution,
Advisory Board Recommendation:
I N/A
Financial Information:
Source of
Funds:
D
Finance Dept.
City Clerk's Office Legislative Tracking:
I Fred Beckmann
c71'f
DATE /1-/3-(l2
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miaml-beach.fl.us
COMMISSION MEMORANDUM
To:
Mayor David Dermer and Date: November 13, 2002
Members of the City Commission
Jorge M. Gonzalez ~ ~
City Manager 0 U
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 FIRST AMENDMENT TO
THE AGREEMENT BETWEEN THE CITY AND CLEAR CHANNEL
ADSHEL INC., TO CONSTRUCT, OPERATE AND MAINTAIN DIRECTORY
STRUCTURES IN THE LINCOLN ROAD AREA; SAID AMENDMENT
EXTENDING THE AGREEMENT TERM BY TWO (2) YEARS IN
CONSIDERATION OF ADSHEL'S AGREEMENT TO PROVIDE
DIRECTORY AND STREET SIGNAGE ON LINCOLN ROAD.
ADMINISTRATION RECOMMENDATION
From:
Subject:
Adopt the Resolution,
BACKGROUND
The City currently has a contract with Clear Channel Adshellnc" for the construction,
operation and maintenance of directory structures and street name signs on Lincoln Road,
effective April 18, 2001 through April 18, 2006, The initial term is for five (5) years, after the
initial term the contract automatically renews for up to five (5) additional one year terms at
the City's sole option and discretion, Subsequent to entering into contract with Clear
Channel Adshellnc" the City realized that there was a need to have ten (10) additional
street name signs and requested that Clear Channel Adshel Inc" install the ten (10)
additional street name signs, These additional street name signs will help both pedestrian
and vehicular traffic in identifying the street name and block address designation for that
location, On August 14, 2001, it was determined and ordered by the Historic Preservation
Board that one additional directory sign would be placed at the intersection of James
Avenue and Lincoln Road,
The City negotiated with Clear Channel Adshel Inc" and agreed that extending the
contract's initial term by two (2) years from five (5) to seven (7) years, is in the City's best
interest. In return, Clear Channel Adshellnc, will install and maintain at no cost to the City,
ten (10) additional street name signs and one (1) additional directory structure, The
estimated cost for the ten (10) street signs is $37,500, Also, the City will continue to
receive two (2) additional years of revenue in the amount of $2000 per directory structure
per year or 30% of total net revenue, whichever is greater.
CONCLUSION
The Administration recommends that the City Commission approve the resolution and
execute the First Amendment to the Agreement, extending the contract's initial term from
five (5) years to seven (7) years.
JMG\RCM\~lf
F:\CMGRlAGENDA\2002\NOV1302\REGULARlLINCOLN RD AMENDMENT memo.doc
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FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF MIAMI BEACH,
FLORIDA AND CLEAR CHANNEL ADSHEL, INC. TO CONSTRUCT, OPERATE,
AND MAINTAIN DIRECTORY STRUCTURES IN THE LINCOLN ROAD AREA
This First Amendment to that certain Agreement dated April 18, 2001, between the CITY
OF MIAMI BEACH, FLORIDA (City), and CLEAR CHANNEL ADSHEL, INe. (Contractor),
to Construct, Operate and Maintain Directory Structures in the Lincoln Road Area, is entered in
to this /3t/.. day of ~t/(,M~ 2002.
RECITALS
WHEREAS, the City currently has an Agreement with Contractor, for the construction,
operation, and maintenance of directory structures and street name signs on Lincoln Road
effective through April 18,2006 with five, one year, options for extension up to April 18, 2011
(Agreement); and
WHEREAS, subsequent to entering into the Agreement with Contractor, the City
realized that ten (10) additional street name signs were needed and requested Contractor to install
such signs; and
WHEREAS, the ten (10) additional street name signs will be significantly helpful to both
the pedestrian and vehicular traffic in identifying the street name and the block address
designation for that location; and
'-
WHEREAS, on August 14, 2001, it was determined and ordered by the City's Historic
Preservation Board that one (1) additional two sided directory structure be placed at the
intersection of James Avenue and Lincoln Road; and
WHEREAS, the cost of the ten (10) additional street name signs, including materials,
equipment, and labor, is thirty-seven thousand five hundred dollars ($37,500.00); and
.
WHEREAS, the City negotiated and agreed with Contractor to extend the Agreement's
initial term by two (2) years in exchange for the cost of installing and maintaining the street
name signs and additional directory structure; and
WHEREAS, the terms of the Agreement provide for the payment, on a quarterly basis,
from the Contractor to the City, of the greater of either two-thousand dollars ($2,000) per
structure per year or thirty percent (30%) of the total net revenues generated by the directory
structures for the additional two years of the initial term;
NOW THEREFORE, in consideration of (10) additional signs and one (I) additional
two sided directory structure, at no cost to the city, said value and revenue generated there from
stated above, the parties herein agree to amend the Agreement as follows:
1. Section 2 of the Agreement, entitled "Term", is hereby amended to read as follows:
This Agreement shall be for an initial term of fi'le (5) seven (7) years,
commencing on April li, 2001, and terminating on April 17, ~ 2008, unless
earlier terminated, as herein provided. At the end of the initial term, this
Agreement shall automatically renew for up to five (5) additional one (I) year
terms; provided, however, that the City, at its sole discretion, may, after the initial
five (5) seven (7) year term, and prior to the conclusion of each one (1) year
renewal term, elect not to renew the Agreement by notifying Contractor of its
intent not to renew, in writing, 120 days prior to the expiration of the initial fiw
~ seven (7) year term, or the expiration of each successive one (1) year term, as
the case may be.
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2. Section 3 of the Agreement, entitled "Minimal Annual Guarantee", is hereby amended to read
as foIlows:
3.1 In addition to erecting, installing, operating, and maintaining, the Street
Furniture contemplated by this Agreement, at its sole cost and expense, and at no
cost to the City, Contractor shaIl also pay the City, on a quarterly basis, a
Minimum Annual Guarantee as foIlows:
$1,300 per structure per year or 20% of the total Net
Revenues, whichever is greater;
$1,300 per structure per year or 25% of the total Net
Revenues, whichever is greater;
$1,300 per structure per year or 25% of the total Net
Revenues, whichever is greater;
$2,000 per structure per year or 28% of the total Net
Revenues, whichever is greater;
$2,000 per structure per year or 28% of the total Net
Revenues, whichever is greater;
YeafS 6 10: $2,900 per struElture per year ar 39~{' af the tetal Net
Year I:
Year 2:
Year 3:
Year 4:
Year 5:
Year 6:
Year 7:
Re'lemleS, whiehe'ler is gr-eater;
$2.000 per structure per year or 30% of the total Net
Revenues. whichever is greater:
$2.000 per structure per year or 30% of the total Net
Revenues. whichever is greater: and.
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Year 8-12:
$2.000 per structure per year or 30% of the total Net
Revenues. whichever is greater.
3. Exhibit A, attached to the Agreement is hereby amended to read as foIlows:
EXHIBIT A
ADSHEL WILL:
Q' Provide and maintain Directory Structures and Street and Block Number
Signs designed by world-renowned architect Laurinda Spear of
Arquitectonica in coIlaboration with the City of Miami Beach in order to
create the most desirable designs for the City of Miami Beach while
assuring that these designs interact positively with the existing Lincoln
Road streetscape.
Provide a minimum of teR (1 Q) eleven (1) Directory Structures to be
installed in the Lincoln Road area. Two (2) 4-sided structures to be
located at the intersection of Lincoln Road/Washington Avenue and
Lincoln Road/Alton Road.
Eight (&) Nine (9) 2-sided structures to be located on Lincoln Road at the
head of each street beginning at Collins Avenue and ending at Lenox
Avenue.
One face of the structure will carry locator map information for Lincoln
Road, the other face will carry commercial advertising, of which three (3)
fuIl panels will be designated for public service advertising for use by
non-profit cultural organizations.
This will produce a total of ~ 26 sign faces broken down as follows:
.w 11 directories of Lincoln Road businesses with locator maps
2 "Welcome to Lincoln Road" signs (Ion each 4-sided structure)
3 cultural calendars dispersed throughout advising of events, etc.
9 10 Ad faces (signs) to be sold for commercial use
Q' Adshel's most important concern is that its designs for Directory
Structures in the Lincoln Road area, interact with the existing streetscape.
Q' Provide tea (10) twenty (20) Street and Block Number Signs to be installed at
ten inter~ections of Lincoln Road from Collins Avenue to Alton Road.
Adshel will also fabricate and install same to ensure identification of cross
streets and block numbers here to fore missing from Lincoln Road.
4
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4. Attachment A to the Agreement is amended to read as foIlows:
CITY OF MIAMI BEACH LINCOLN ROAD - ADSHEL SIGNAGE
Adshel will pay the Cit on a quarterly basis for years I and 2 and thereafter at the
beginning of each year; a Minimal Annual Guarantee (MAG) of $1,300 per
structure per years 1-3 and thereafter, $2,000 per structure per year at beginning
of each new year or a percentage of net revenue, whichever is greater on an
escalating scale
Year I
Year 2
Year 3
Year 4
Year 5
Years {j 7
Year 6
Year 7
Years 8-12
20%
25%
25%
28%
28%
39%
30%
30%
30%
5. Except as specificaIly amended herein, all other provision of the Agreement shall remain
unchanged and in full force and effect.
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IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be signed by
their duly authorized representatives the day and year first above written:
ATTEST:
MI BEACH, FLORIDA
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ATTEST:
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Secretary (~
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Print Name
CLEAR CHANNEL ADSHEL, INC.
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Title:
APPROVED AS TO
FORM & LANGUAGE
a FOR EXECUnON
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