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C7U-Execute 1st Amendment To ATM Lease w- Suntrust Bank For 1700 Convention CentCOMMISSION ITEM SUMMARY Condensed Title: A Resolution authorizing the Mayor and City Clerk to execute the First Amendment to ATM Lease between the City and SunTrust Bank, dated June 30, 2009, for the premises located at 1700 Convention Center Drive, Miami Beach, Florida; said amendment approving Tenant's sole renewal option for a period of four (4) years and three hundred sixty four (364) days, retroactively, commencing August 1,2014 and ending July 30,2019; and further the relocation of the ATM to 1755 Meridian Avenue, First Floor, Miami Beach, Florida. N/A Supporting Data (Surveys, Environmental Scan, etc.): N/A ltem Summary/Recommendation : On September 5,2007, the Mayor and City Commission passed Resolution 2007-26614, accepting the City Manager's recommendation pertaining to the ranking of proposals pursuant to RFP 37-06107 for banking services, and authorizing the administration to enter into negotiations with top-ranked proposer, SunTrust Bank. The RFP required the winning bidder to install an ATM machine, in City Hall, at no charge to the City. On May 13,2009, the Mayor and City Commission passed Resolution No.2009-27074, approving an ATM Lease Agreement between the City and SunTrust Bank, for use of approximately sixteen (16) square feet of City-owned property, located at 1700 Convention Center Drive (City Hall), Miami Beach, Florida for an initial term of five years, with an additional renewal term of four (4) years and three hundred sixty four (364) days. ln December 2012, the City and Tenant mutually agreed to relocate the ATM machine to 1755 Meridian Avenue, First Floor, in order to better accommodate the needs of employees and residents at the Customer Service Center. Said relocation shall be acknowledged as part of the renewal amendment. The ATM Lease contains one (1) renewal option, for a period of four (4) years and three hundred sixty four (364) days, retroactively commencing August 1, 2014 and ending July 30, 2019. Since Tenant is required to provide the ATM machine at no cost to the City, and since the ATM machine is a benefit to the employees and residents of the City, the Administration recommends the approval of the First Amendment to ATM Lease between the Citv and SunTrust Bank. Financial lnformation : Max Sklar, ext. 6116 T:\AGENDA\2014\September\Suntrust ATM SUM (9-1 0-1 4).docx AGENDA neu C7[/E MIAMIBEACH olrre ?-/0-u427 MIAMIBEACH City of Miomi Beoch, 1700 Convention Center Drive. Miomi Beoch, Florido 33.139, www.miomibeochfl.gov COMMISSION MEMORANDUM TO: FROM: DATE: SUBJECT:A RESOLUTION OF THE MAYORIAND CIry COMMISSION OF THE CITY OF MIAMI BEAGH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FIRST AMENDMENT TO ATM LEASE BETWEEN THE CITY AND SUNTRUST BANK (TENANT), DATED JUNE 30, 2009, FOR THE PREMISES LOCATED AT 17OO CONVENTION CENTER DRIVE, MIAMI BEACH, FLORIDA (CITY HALL); SAID AMENDMENT ACKNOWLEDGING TENANT'S EXERCISE OF ITS SOLE RENEWAL OPTION, FOR A PERTOD OF FOUR (4) YEARS AND THREE HUNDRED SIXTY FOUR (364) DAYS, RETROACT|VELY, COMMENCTNG AUGUST 1, 2014 AND ENDING JULY 30, 2019; AND FURTHER RETROACTIVELY APPROVING THE RELOCATION OF THE ATM MACHINE FROM GITY HALL TO 1755 MERIDIAN AVENUE, FIRST FLOOR, MIAMI BEACH, FLORIDA. ADMINISTRATION RECOMM ENDATION Adopt the Resolution. BACKGROUND On September 5, 2007, the Mayor and City Commission passed Resolution 2007-26614, accepting the City Manager's recommendation pertaining to the ranking of proposals pursuant to RFP 37-06107 for banking services, and authorizing the administration to enter into negotiations with top-ranked proposer, SunTrust Bank. The RFP required the winning bidder to install an ATM machine, in City Hall, at no charge to the City. On May 13,2009, the Mayor and City Commission passed Resolution No.2009-27074, approving an ATM Lease Agreement between the City and SunTrust Bank, for use of approximately sixteen (16) square feet of City-owned property, located at 1700 Convention Center Drive (a/k/a City Hall), Miami Beach, Florida for an initial term of five years, with an additional renewal term of four (4) years and three hundred sixty four (364) days, at the City's sole discretion. ANALYSIS ln Decembet 2012, the City and Tenant mutually agreed to relocate the ATM machine to 1755 Meridian Avenue, First Floor, in order to better accommodate the needs of employees and residents at the Customer Service Center. Said relocation shall be acknowledged as part of the First Amendment to ATM Lease, attached hereto and marked "Attachment 1". Mayor Philip Levine and Members { the City Cofnmission Jimmy Morales, City Manager September 10,2014 428 Commission Memorandum SunTrust ATM Amendment September 10, 2014 Page 2 of 2 The ATM Lease contains one (1) renewal option, for a period of four (4) years and three hundred sixty four (364) days, retroactively commencing August 1,2014 and ending July 30, 2019. As provided by Tenant, below is the ATM machine transaction volume for the twelve (12) months ending July 31 ,2014. Month Jul-14 Jun-14 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-1 3 Aug-13 Foreign Transactions 28 42 29 20 40 36 33 39 40 50 41 35 SunTrust Total Transactions Transactions 30 27 19 I 17 17 22 18 22 23 24 20 58 69 48 29 57 53 55 57 62 73 65 55 Average Transactions 36 21 Sl As compared to a typical SunTrust ATM machine, the figures above represent a low volume of transactions and Tenant claims to be losing money by providing this machine at no cost to the City. However, pursuant to RFP 37-06107 for banking services, SunTrust Bank is required to provide an ATM machine, in the City, at no charge to the City. CONCLUSION AND RECOMMENDATION Since Tenant is required to provide the ATM machine at no cost to the City, the Administration recommends the approval of the First Amendment to ATM Lease, providing for the retroactive approval of the Lease renewal and relocation of the ATM machine, in order to continue to ;JfiJj] *', services at a more convenient rocation T:\AGENDA\2014\SeptembeASuntrust ATM MEMO (9-1 0-14).docx 429 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FIRST AMENDMENT TO ATM LEASE BETWEEN THE CIry AND SUNTRUST BANK (TENANT), DATED JUNE 30, 2009, FOR THE PREMISES LOCATED AT 17OO CONVENTION CENTER DRIVE, MIAMI BEACH, FLORIDA (GITY HALL); SAID AMENDMENT ACKNOWLEDGING TENANT'S EXERCISE OF ITS SOLE RENEWAL OPTION, FOR A PERIOD OF FOUR (4) YEARS AND THREE HUNDRED StXTy FOUR (364) DAYS, RETROACTIVELY, COMMENGING AUGUST 1, 2014 AND ENDING JULY 30, 2019; AND FURTHER RETROACTIVELY APPROVING THE RELOCATION OF THE ATM MAGHINE FROM CITY HALL TO f755 MERIDIAN AVENUE, FIRST FLOOR, MIAM! BEACH, FLORIDA. WHEREAS, on September 5, 2007, the Mayor and City Commission passed Resolution 2007- 26614, accepting the City Manager's recommendation pertaining to the ranking of proposals pursuant to RFP 37-06107 for banking services, and authorizing the administration to enter into negotiations with top-ranked proposer SunTrust Bank, and WHEREAS, the RFP required the winning bidder to install an ATM machine, in City Hall, at no charge to the City, and WHEREAS, on May 13, 2009, the Mayor and City Commission passed Resolution No. 2009- 27074, approving an ATM Lease Agreement (Lease) between the City and SunTrust Bank, for use of approximately sixteen (16) square feet of City-owned property, located at 1700 Convention Center Drive, Miami Beach, Florida for an initial term of five years, with an additional renewal term of four years and three hundred sixty four (364) days; and WHEREAS, Tenant has provided the City with the requisite notice of its intention to exercise its sole renewal option, pursuant to Section 3(b) of the Lease, for the renewal term commencing August 1, 2014 and ending July 30, 2019, and WHEREAS, in December 2012, the City and Tenant mutually agreed to relocate the ATM machine to 1755 Meridian Avenue, First Floor, in order to better accommodate the needs of employees and residents at the Customer Service Center; and WHEREAS, the Administration is recommending that the Mayor and City Clerk execute the First Amendment to ATM Lease, providing for the retroactive approval of the Lease renewal and relocation of the ATM machine, in order to contlnue to provide the public with ATM services at a more convenient location. lr NTENTTONALLY LEFT BLANKI 430 NOW, THEREFORE, BE !T DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE C!ry OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the Mayor and City Clerk to execute the First Amendment to ATM Lease between the City and SunTrust Bank (Tenant), dated June 30, 2009, for the premises located at '1700 Convention Center Drive, Miami Beach, Florida (City Hall), as attached hereto and incorporated herein as "Attachment 1"; said amendment acknowledging Tenant's exercise of its sole renewal option, for a period of four (4) years and three hundred sixty four (364) days, retroactively, commencing August 1, 2014 and ending July 30, 2019; and further retroactively approving the relocation of the ATM machine from City Hall to 1755 Meridian Avenue, First Floor, Miami Beach, Florida. PASSED and ADOPTED this day of 2014. ATTEST: Rafael Granado, Clry CLERK T:\AGENDA\2014\September\Suntrust ATM RESO (9-1 0-1 4).docx Philip Levine, MAYOR ,6F[rgHRSgIg, FqR EXECUTTON I ) -,1- - Dote 431 Attachment 1 FIRST AMEIYDMENT TO ATM LEASE THIS FIRST AMENDMENT TO ATM LEASE (this'Amcndmcntu), dated effective as of the day of huly,20t4 ("Effective Date") betwecn CITY OF MIAMI BEACE, a Florida nr,--i"ipa -*rporutior, ('Landlord"), and SUNTRUST BAM( a Georgia banking corporation ("Tenant"), recites and provides: BE9IIAIE: A. By ATM Lease dated as of June 3,2OOg (the *Lease"), Iandlord lege{ to Tenant and Tenant leascd from Landlord those certain premises containing approximately.sixteen (16) rqro" f*t of space f6re 'itttites") in the building known as Miami Beach City Hall and located at 1700 -Couvention Center Drive, Miami Beach, F.lorida 33139 (the "Building'), uPon the terms and conditions set forth therein. B. On or about February 213,2012, the ATM was rclocatcd from the Premises to a different buitding. C. The current term of the I*ase is sctreduled to expire on July 31, 2014. D. Landlord and Tenant now desire to amend the Lcase to reflect the new location of the ATM and to extend the term of the Lease, all as morc particularly described below' AMEITIDMENT: FOR and in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the rcocipt and sulEciency of which are hereby actnowteOgea, Iandlord and Tenant hercby agrce as follows: l. Definitions: Recitals. Unlcss specifically defined berein, all eapitalizcd tenns uscd in this Amendment shall havc the meanings set f;rttt in the Lease' The recitals lo this Amendment are hercby incorporated into and made a part of this Amendment' Z. Ameudmcnts to kase. Iandlord and Tenant hereby emend thc Lease as follows effective as of ttre gtrective Date, unless othenviseprovided hercin: a. Relocation of Premises: Section l(a) of the Lease shall be amended o provide that the premiscs *dcr ttle Lease -have been reiocated to that certain space, having ipproximatety sixteenii6, tquutt feetgf qpTe, where the ATM is currently situated on the first iirt) n*r, in tt e to"ution moi" partirutarly shown on Exhibit A attached hereto and incorporated 432 herein by r-eference (the "Relocation Space") of that certain building located at 1755 Meridian Avenue. Miami Beach, Florida 3313i C'Relocated Building") for the installation, operation, maintenance, replacement and removal of one (l) automated teller machine, or any other similar machine or terminal (*ATM"). The parties hereto acknowledge and agree that Tenant has previously surrenderedpo..o.ion of thi original Premises to Landlord in the condition required Ly the Lease and Tenant shall have no further right, title or interest in or to the original Premiscs. All relbr-ences to the Premises in the Lease and this Amendment shall be deemed to be references to the Relocation Space; and all references to the Building in the Lease and this Arnendment shall be deemed to be retbrences to the Retocated Building. Landlord hereby approves Tenant's current improvements to the Relocation Space. b. Tenant hereby exercises its option under Section l(f) of thc Lease to extend the term of the Lease for the Renewal Tenn which shall commence on August 1,2014 and expire on July 30, 2019 on the same terms and provisions as set lbrlh in the lease. Landlord hcrcbyacknowtedges and accepts Tenant's exercise of its option to extend the lerm of the Leasc for the Renewal Term. c. Exhibit A attached to the original Lease is hereby deletcd in its entirety and replaced with Exhibit A attached to this Amendment. d. f'enant's Address: Effective as of the date of full execution of this Amendment, Section l(h) of th" L"us. is hereby amended and rcstated in its antirety to read as follows: '.Tenant's adcrress: sunTrust Bank 200 Souttr Orange Avenue Mail Code: 2032; SOAB-3 Orlando, Florida 32801 Attn: CorPorate Real Estate Phone: (407)237-5208 Fax: (407) 237-1718 3. Ratification. Except as expressly amended hereby, the Lease is hereby ratified and confirmcd and remains in full force and effect. In the event of any inconsistency between the temrs of rhe Lease and this Arnendment. the terms of this Amendment shall in all cases govern' 4. Brokerase Comnrission. Each party repr€sents and warrants that it has nol engaged the services "f .r' d""lt *ith any brokcr, salesperson or oiher entity who may claim a .o**ittiun or othet' paynent in conjunction with this Amendment' Each parfy aglees to indemnify, defend and [old the othci harmless from and against all loss, claims, costs and expenses-(including attomeys' fees) caused by a breach of the foregoing rcpresentation' 5. Authorization. Each party represents and warrants to the other that lhis Amendment has been duly authorized, eiecutid and delivered by all necessary action on its behalf, constitutes the vatid and binding agreement of such party and is enforceable in accordance with its tentls. Landlord represents and warants to Tenant that (i) there are no 433 rnortgages or cfeeds of trust encumbedng the Premises which requirc the beneficiary of such *ort!"!. or deed of nust to consent to this funendment, and (ii) Landlord is the sole owner of tte sln:pte title to the Premiscs and the landlord under the [rase and there is no other person or entity who has an ownership interest in the Premises or the lrase or whose consent is required to this Amendment. 6. Successors and Assisns. This Amendmenl shall inure to the benefit of, and be binding rpon, thi parties hereto and their respective heirs, personal representatives, successors and assigns. j. Entire Agreement. This Amendment, together with the Lease, constitutes the entire agreern*t Urnu6 tt. parties hercto with respect to the subject matter hereof and supersedles all prior discussions, rmderstandings, agreements and negotiations between the parties hereto. This Amendment and the Lease nriy be modified onty by a written instrument duly executed by the parties hereto. 8. Governine law. This Amendment shall be construed and enforced in accotdance with the tu*, nf th".i*it.ti* in which the Premises arc located, without regard to principles of conflicts of laws. g. Countenrarts. This Amendrnent may be executcd in two or mole coulrteryarls' each of which shall Ue deemect an original and which together shall constitute one and the sarne instrumeil. 10. Except as amencled herein, all other terms and conditions of the Lease shall remain unchanged and in full force and effect' ISTGNATIIRES ON FOLLOWING PAGEI 434 IN WITNESS WHEREOF, Landlord and Tenant have executed or caused this Amendment to be executed on their behalf by their duly authorized representatives as of the date set forth above. 1VITNESSES: CITY CLERK: By: 111,,,'-Eafad E. Granado WITITTE.SSES: **"y By, frr4//4/ Thomas First Vice APPROVED AS TO FORM & LANGUAGE -1 (rr--( fVt-o, Name: C**-o/ \/d,iAz- aitc.. / ; S Nane: //r/s* #frat*kz LAITTDLORD: CITY OF MIAndI BEACII, a Florida municipal corPoration Philip Levine Name: Title: Date: Mayor TENANT: SUNTRUST BANK a Georgia banking FLo f 7{5 Tirsl Ameodmeot to ATM Lc'as(5).du 435 Replacernent Exhibit A (the "Premises") 436