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Management Agreement J 007- :l t f;z 1 c '1 D - ;f'1/o7 MANAGEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH. FLORIDA AND THE MIAMI BEACH GARDEN CONSERVANCY. INC. ;t/;.. THIS AGREEMENT, is made and executed as of this ~ day of -:MNUAPlI2007, by and between the CITY OF MIAMI BEACH, a municipal corporation organized and existing under the laws ofth6 State of Florida (the City), and the MIAMI BEACH GARDEN CONSERVANCY, INC., a Florida not-for-profit corporation, 2000 Convention Center Drive, Miami Beach, Florida 33139- 1821 (the Conservancy). WITNESSETH RECITALS: WHEREAS, the City is the owner ofthe Miami Beach Botanical Garden (Botanical Garden or, in the alternative, the Premises), located at 2000 Convention Center Drive, Miami Beach, Florida 33139; and WHEREAS, the Conservancy is an organization with members committed to promotion of the Botanical Garden as a horticultural, educational, and cultural arts venue; and the Conservancy and its precedents have, for the past three years, raised funds and volunteered time to improve the Botanical Garden's contribution to a higher quality oflife in Miami Beach; and WHEREAS, the City requires citizen participation in the development and operation of the Botanical Garden so that there can be a strong "public/private partnership" of efforts in funding to fully realize the Botanical Garden's potential; and WHEREAS, on July 7, 1999, the Mayor and City Commission authorized the execution of a Concession Agreement with the Conservancy, which permitted the Conservancy use of the Botanical Garden (specifically, the Welcome Center, and the gift shop and the orchidariums; and Garden Center Management Agreement Draft 1/4/07 WHEREAS, the Conservancy's purpose was to provide volunteer public information, and horticultural, educational and conservational services, and support the capital improvements, programming and building/grounds maintenance needs at the Botanical Garden; and WHEREAS, on April 18, 200 I, the City Commission approved a Management Agreement (Prior Agreement) with the Conservancy for a term of three (3) years, commencing on July 1,2001 and expiring on July 20, 2004, with an option to renew, at the City's discretion, for an additional two (2) year term; and WHEREAS, on April 14, 2004, two months prior to the expiration of the initial term of the Prior Agreement, the City Commission adopted Resolution 2004-25534, approving the two (2) year renewal option and further waiving, by 5/7ths vote, the competitive bidding requirements, to provide for one (1) additional year; all for a total renewal term of three (3) years; and WHEREAS, since the Prior Agreement is due to expire on June 30, 2007, with no renewal options remaining, the City has been approached by the Conservancy, which has requested a new Agreement, in order to not only pursue its base mission, but also to see through the implementation of General Obligation (G .0.) Bond funded capital improvements, and to achieve full accreditation as a botanical garden; and WHEREAS, on November 22, 2006, the Finance and Citywide Projects Committee unanimously recommended that the Mayor and City Commission waive, by 5/7ths vote, the competitive bidding requirement and approve a new Management Agreement, with an initial term of five (5) years, commencing on July 1, 2007, and ending on June 30, 2012, with an option, at the City's sole discretion, to renew and extend the Agreement for an additional five (5) year term. 2 Garden Center Management Agreement Draft 1/4/07 NOW THEREFORE, in consideration of the premises and the mutual covenants and conditions herein contained, it is agreed by the parties hereto as follows: SECTION 1. The City hereby grants to the Conservancy, and the Conservancy hereby accepts from the City, this Agreement to manage and operate the Botanical Garden, located at 2000 Convention Center Drive, Miami Beach, Florida, and more fully described in Exhibit A (the Botanical Garden or, in the alternative, the Premises), attached hereto and made a part hereof, in conformance with the purposes and for the period stated herein and subject to all the terms and conditions herein contained and fairly implied by the terms hereinafter set forth. SECTION 2. TERM. This Agreement shall be for an initial term of five (5) years, commencing on July 1,2007 ending on the June 30, 2012. At the expiration of the initial term herein, provided the Conservancy is in good standing and free from default hereunder, the City may, at its sole discretion, renew and extend this Agreement for an additional five (5) year option term, under all of the terms and conditions contained herein. In the event the City determines not to extend the Agreement, it shall notify the Conservancy of same, in writing, no less than sixty (60) days prior to the end of the initial term. 2.1 Termination of Prior Ae:reement. Upon approval ofthis Agreement by the Mayor and City Commission and execution by the parties hereto, the Prior Agreement (between the City and the Conservancy, dated April 18, 2001, and as amended and extended pursuant to City Resolution No. 2004-25534) shall be hereby terminated and shall be of no further force or effect and, accordingly the parties intend and acknowledge that their respective rights and obligations with regard to the ongoing management, maintenance, and operation of the Botanical Garden shall be governed by the terms and conditions set forth in this Agreement. 3 Garden Center Management Agreement Draft 1/4/07 SECTION 3. BOTANICAL GARDEN PREMISES. The Botanical Garden premises subject to this Agreement, herein referred to as the Botanical Garden or, in the alternative, the Premises, shall be those facilities and spaces more specifically described in Exhibit "A", attached and incorporated herein. Subject to the terms ofthis Agreement, the Conservancy shall have the primary use and sole occupation of the Premises and shall be responsible for its management and maintenance, as further set forth herein. SECTION 4. GOAL AND PRIORITIES. The Botanical Garden shall be managed and developed as a multi-purpose community resource centered on an outstanding public botanical garden which provides: Enjoyment of a beautiful botanical garden Education for children and adults A unique and enjoyable venue for visual and performing arts, special events, receptions, and community meetings A catalyst for community promotion of beautification and ecological improvement of the City A popular and memorable tourist destination The City and the Conservancy intend that the activities programmed in and pertaining to the Botanical Garden continuously increase in scope and number so that the Garden favorably impacts an increasing number of residents and visitors. SECTION 5. OPERATION AND MANAGEMENT OF THE BOTANICAL GARDEN. 5.1 All activities undertaken at the Botanical Garden shall be to advance the goals and priorities set forth in Section 4 above. Subject to the terms, limitations and required approvals contained in this Agreement, the Conservancy is authorized and required, and shall have the exclusive right to: a. Manage and direct the operations and activities of the Botanical Garden; 4 Garden Center Management Agreement Draft 1/4/07 b. Maintain the grounds and garden and provide housekeeping for the facilities; c. Develop the Botanical Garden grounds consistent with the City-approved Master Plan and City administration of public funds including, without limitation, the allocation of General Obligation (G.O.) Bond funds; d. Develop and implement programs and activities which support and promote the goals and priorities set forth in Section 4; and e. Schedule public use of the Premises pursuant to policies and procedures consistent with the goals and priorities set forth in Section 4 and fees reflecting the reasonable expense of allowing such use, as approved by the City Commission. The City shall have the right to use the Premises, including but not limited to the meeting room facilities, on a space available basis, at no charge. Duly constituted garden clubs with membership primarily situated in the City of Miami Beach shall have the right to hold their regular meetings at the Botanical Garden at no charge. 5.2 Hours of Operation. City and Conservancy herein agree that normal hours of operation for the Botanical Garden for the general public shall be from 9:30 am to 5:00 pm. These hours shall not otherwise be extended or shortened without the prior written approval of the City Manager or his designee, which approval shall not be unreasonably withheld. Notwithstanding the preceding, the Conservancy shall not require the prior written consent of the City for operation of the Botanical Garden (beyond the regular hours of operation set forth herein) for functions, consistent with the goals and priorities in Section 4, such as special events, cultural events, reception, etc. SECTION 6. BASE USE FEE/REVENUE FROM BOTANICAL GARDEN RELATED ACTIVITIES/FINANCIAL RECORDS AND REPORTS. 6.1 Base Use Fee. As partial consideration for the City's allowing the Conservancy to use the Premises for the purposes, and in accordance with the terms and conditions, set forth in this Agreement. The Conservancy shall pay to the City an annual base usage fee of one dollar ($1) per year. 5 Garden Center Management Agreement Draft 1/4/07 6.2 Revenue from Botanical Garden Related Businesses/Activities. The City herein acknowledges that the Conservancy may derive additional revenues from business( es) it conducts upon or from the Premises, including, but not limited to, event rental of the Premises, gift shop sales, plant sales, classes, tours, and sale of food and beverages. The Conservancy herein acknowledges that any and all business( es) conducted upon the Premises shall be directly related to and consistent with the customary operation and management of a public botanical garden and consistent with the goals and priorities in Section 4. Notwithstanding the preceding, any business conducted, or contemplated to be conducted upon, the Premises shall first be approved, in writing, by the City Manager or his designee, prior to commencement of same, which approval, if given at all, shall be at the City's sole discretion. Said approval shall initially be obtained concurrent with the execution of this Agreement by the parties, by submittal of proposed useslbusiness( es) to be conducted by the Conservancy on the Premises, which submission shall be attached and incorporated hereto as Exhibit "B" to the Agreement. Thereafter, said exhibit shall be updated by the Conservancy, with each new proposed use/business(es) on the Premises. Additionally, the City's approval of any proposed useslbusiness( es) to be conducted on the Premises by the Conservancy shall not excuse the Conservancy from the requirements pertaining to event programming and other event scheduling requirements, as set forth in Section 10 of the Agreement. 6.2.1 Cessation/Suspension of Approved Use(s) and/or Business Activitv(ies). Notwithstanding anything contained in subsection 6.2 or this Agreement, in the event that a particular use and/or business activity(ies) has been approved by the City Manager, and the City Manager thereafter, upon reasonable inquiry, determines that the continuation of such use(s) and/or activity(ies) is, or may be, inconsistent, contrary to and/or detrimental to the goals and priorities set forth in Section 4, and/or to the health, safety and/or welfare of the residents of and visitors to the City of Miami Beach, then the City Manager and/or his designee, upon thirty (30) days prior written notice to the Conservancy of same may revoke, suspend, and/or otherwise disallow the objectionable uses(s) and/or business activity(ies), and the Conservancy shall immediately cease and desist in providing, and/or continuing with, said use(s) and/or business activity(ies) within the time period and in the manner prescribed in the City's notice. In the alternative, the City Manager and/or 6 Garden Center Management Agreement Draft 1/4/07 his designee may allow the Conservancy to continue with the subject use, or business activity(ies), subject to such additional guidelines, as may be determined and established by the City Manager, in his sole and reasonable discretion and judgment. 6.3 Financial Records and Reports. The Conservancy shall keep on the Premises, or such other place within Miami Dade County, Florida, as approved by the City, true, accurate, and complete records and accounts of all receipts and expenses for business( es) being transacted upon or from the Premises pursuant to this Agreement and shall give the City, or its designated representative, access during reasonable business hours to examine and audit such records and accounts. The Conservancy shall provide the City Manager or his designee, with time frames consistent with City departments, a monthly report of receipts and expenditures with a comparison to the stated budget and projection for the balance of the budget period. Within ninety (90) days after each fiscal year during the term of this Agreement, the Conservancy shall deliver to the City a written annual financial statement of the activities conducted pursuant to this Agreement. Said statement shall be certified as true, accurate and complete by the Conservancy and by its certified public accountant. SECTION 7. BUDGET AND FUNDING FOR THE BOTANICAL GARDEN. 7.1 Throughout the term of this Agreement, the Conservancy shall prepare and present, on or before July 3151 of each City fiscal year (October I - September 30), a proposed, detailed line item annual operating budget for the Botanical Garden, for review and approval by the City Manager and/or his designee. Said budget shall include a projected income and expense statement; projected year end balance sheet; and statement of projected income sources~ and application of funds. Additionally, the budget shall also include, but not be limited to, the following detailed projections: a. Gross revenues by categories from all revenue sources derived from or upon the Botanical Garden (including, without limitation, from business uses and/or activities on the Premises); b. Operating expenses of the Botanical Garden; c. Administrative, labor and general expenses; 7 Garden Center Management Agreement Draft 1/4/07 d. Marketing, advertising and promotion expenses; e. Energy costs, to the extent not supplied by the City; f. Regular repairs and maintenance, to the extent not performed by the City. 7.2 Proe:rammatic Plan. Accompanying the Conservancy's proposed annual budget shall be the Botanical Garden Programmatic Plan for the next fiscal year, detailing the then-known activities planned, and the number of residents and visitors anticipated to be impacted. SECTION 8. NOT A LEASE. It is expressly understood and agreed that no part, parcel, building, structure, equipment or space is leased to the Conservancy; that this Agreement is a management agreement and not a lease; and that the Conservancy's right to operate, and manage the Botanical Garden shall continue only so long as the Conservancy complies with the undertakings, provisions, agreements, stipulations and conditions of this Agreement. SECTION 9. ALTERATIONS, MAINTENANCE, AND REPAIRS. 9.1 Alterations. It is understood by the parties hereto that the Conservancy shall not be responsible, nor required to pay for, any costs related to capital improvements or infrastructure (i.e. including, but not limited to, plumbing and sewer lines, major electrical, structural, etc.) with regard to the Premises. Notwithstanding the foregoing, in the event that the Conservancy desires or deems it appropriate to make alterations, additions, or improvements to the Premises, it will submit plans and estimates of cost for same to the City for the prior written approval of the City Manager or his designee. No such alterations, improvements, or additions shall be made without the express written approval of the City. Additionally, in the event that minor (defined as $5000 or less) capital and/or infrastructure repairs are required, the Conservancy may be permitted to proceed, subject to obtaining the prior written consent of the City Manager or his designee, whose determination over whether such repairs are, in fact, necessary, shall be final and binding upon the parties. In the event that the City Manager approves and authorizes the Conservancy to proceed, the Conservancy shall 8 Garden Center Management Agreement Draft 1/4/07 obtain any and all necessary permits and/or other approvals, as may be required, for the work and shall (prior to commencement of work) provide the City with evidence of same, as well as evidence of any and all insurance requirements, as may be required by the City for the intended work, and naming the City as an additional insured. Thereafter, the Conservancy shall be responsible for diligently prosecuting such work, through completion, and for obtaining any and all applicable final inspections. Provided that said minor repairs( s) have been satisfactorily performed and completed subject to the terms herein, the Conservancy will be reimbursed for said repairs. Examples of "minor" repairs may include, without limitation, minor electrical and plumbing, HV AC repair, broken windows and/or doors, and partial painting and touch up of the building. The Conservancy shall not have the right to create or permit the creation of any lien attaching to the City's interest in the Premises as a result of any such alterations, improvements, or additions. 9.2 Maintenance. The City shall continue to have sole responsibility for maintenance and repair of all facilities, improvements and facilities and utilities infrastructure equipment on the Premises. However, notwithstanding the preceding sentence, the Conservancy continues to accept the Botanical Garden, particularly the aforementioned, in its present "as-is" condition from the City. The Conservancy shall, at its sole cost and expense, to the satisfaction of the City, keep and maintain the Premises, and all improvements thereon, in good, clean, and sanitary order. The Conservancy shall, at its sole cost and expense, have the sole responsibility for maintaining the grounds and horticulture of the Botanical Garden. To that end, the parties herein acknowledge, and the Conservancy herein agrees to be bound by, the minimum maintenance standards as set forth in Exhibit "C" to this Agreement, entitled "City of Miami Beach Minimum Specifications for Maintenance of the Miami Beach Botanical Garden". It is further understood that the Conservancy shall provide the City with a monthly maintenance report, in a format to be approved by the City Manager and/or his designee. Notwithstanding the City and the Conservancy's respective roles with regard to maintenance of the Premises and the grounds and horticulture of the Botanical Garden, the City retains the right to review and approve plans for all major horticultural material installations, removals, etc., and the Conservancy shall comply with any and all State, Miami-Dade County, and City laws, codes, rules and regulations, etc. with regard to its respective maintenance 9 Garden Center Management Agreement Draft 1/4/07 and horticultural rights and obligations in this Agreement including, but not limited to, tree removal permits, use and storage of pesticides, chemicals, etc. 9.3 Personal Property. A list of City owned personal property included in the Agreement for use by the Conservancy during the term hereof, is attached and incorporated herein as Exhibit "D". The Conservancy hereby continues to accept such equipment in its "as-is" condition. The Conservancy shall maintain all City owned equipment and, at its sole cost and expense, acquire and maintain all replacement and such other equipment as may be necessary to maintain the Premises in a condition which satisfies those maintenance standards set forth in Exhibit "C", but shall not have an obligation to improve the condition of the personal property beyond the "as-is" condition in which it was accepted, all of which shall be noted on the inventory. The Conservancy shall have the right, at the initial inventory and at any point thereafter, to decline the use and responsibility for any personal property not useful for its operation of the Botanical Garden and may turn such personal property over to the City in the condition in which it was accepted. The City shall have the right to periodically take an inventory of any or all equipment on the Premises. In the event that the Conservancy deems it necessary and appropriate to supplement the City equipment set forth in Exhibit "D", through either the direct lease or purchase by the Conservancy of additional equipment to be used for the operation and maintenance of the Premises, the Conservancy shall be required to submit a list of all equipment either leased or purchased directly by the Conservancy and shall provide the City with copies of any applicable lease purchase agreements, and all invoices and validation of payments related to such lease/purchase agreements, in order for the City to properly maintain an account for such newly acquired inventory against the original list set forth in Exhibit "D". It shall also be the Conservancy's responsibility to supplement such list periodically in the event of any new equipment leases or purchases. In the event that a lease/purchase agreement for equipment acquired by the Conservancy extends beyond the duration of this Agreement, the City, at its sole option, shall have the right to either purchase such equipment (in the event of a lease/purchase agreement), or assume the lease on the same terms and conditions as originally made available to the Conservancy. Notwithstanding the preceding, the Conservancy shall not purchase or lease any supplemental equipment to be used by 10 Garden Center Management Agreement Draft 1/4/07 the Conservancy for the purpose of operating and managing the Premises under this Agreement, without first having obtained the prior written approval of the City Manager or his designee. SECTION 10. USE OF PREMISES FOR SPECIAL EVENTS/ RECEPTIONS/ COMMUNITY MEETINGS, AND GENERALLY. 10.1 Pursuant to Subsection 5.1(e), the Conservancy shall have the exclusive right to allow, permit, rent, and otherwise book any and all areas of the Botanical Garden, for the purpose of allowing individuals and/or organizations to utilize the Botanical Garden for special events, receptions, community meetings, and any other uses generally consistent with use(s) associated with a public botanical garden. The Conservancy shall follow and adhere to the rental rates and policies and procedures established and approved by the City and which are attached hereto as Exhibit "E". The City reserves the right to amend said rental rates and other policies and procedures in its sole discretion and, in such event, the City shall require the Conservancy to amend its version of same, which will be attached as a new Exhibit "E" to this Agreement. In particular, the Conservancy shall require that all users of the Botanical Garden (excepting the City) provide Certificates ofInsurance evidencing appropriate insurance, as shall be determined by the City's Risk Manager and referenced within the attached Exhibit "E". Copies of these certificates shall be furnished to the City Manager or his designee. Such insurance shall be kept in full force at all times throughout the period of intended use. All such liability policies shall name the City as additional insured. The Conservancy shall provide a monthly written report of all events scheduled in and pertaining to the Garden and, with each such report, shall report on the events which actually occurred and the number of persons participating in those events during the previous month. Any commercial activity at the Garden shall be undertaken for the purposes of furthering the purposes set forth in Section 4 herein, and must be approved by the City, as provided in Section 6.1 of this Agreement, and may be disapproved and/or otherwise redefined, as provided in Section 6.2 of the Agreement. All revenues received by the Conservancy in connection with the operation, management, and its portion of the programming of the Botanical Garden shall be dedicated 11 Garden Center Management Agreement Draft 1/4/07 exclusively to support the operation and improvement ofthe Botanical Garden. For purposes herein, "revenues" shall also be deemed to include unrestricted donations and contributions received by the Conservancy, as well as membership fees and dues. No portion of the net earnings resulting from the activities of the Conservancy at the Botanical Garden shall inure to the benefit of any private individual. In the event that revenue(s) pertaining to the Botanical Garden exceeds expenses during an annual accounting period, the City and the Conservancy agree that such excess will be applied by the City to offset the City's contribution to the Conservancy, as set forth and memorialized in the annual operating budget for the proceeding fiscal year during the term ofthis Agreement. Notwithstanding the foregoing, the City Manager or his designee, shall oversee the Conservancy's activities with regard to this Agreement and its operation and management of the Botanical Garden, such that the City is assured that the purposes intended by this Agreement are being achieved and the Botanical Garden is being operated in the best interest ofthe City. 10.2 Use bv the City. The City shall have the right to use the Botanical Garden, or any part thereof, subject to availability, for the benefit of the community for such purposes including, but not limited to, meetings, labor negotiations and training classes, activities sponsored in conjunction with the Miami Beach Convention Center, City-sponsored special events, receptions, and other purposes, as deemed necessary by the City in its sole and absolute discretion, without the payment of any rental or use fee, except the direct out-of-pocket expenses incurred in connection with such uses shall be paid by the City. City uses of the Botanical Garden shall not be competitive with, nor conflict with, events booked or sponsored by the Conservancy and shall be booked in advance upon reasonable notice, and shall not be inconsistent with maintenance of the grounds and facility ofthe Botanical Garden. Additionally, upon execution of this Agreement, the Conservancy acknowledges and herein agrees to honor all pre-existing scheduled events, whether booked by the City or otherwise, at the Botanical Garden, whether or not such events actually occur on or after execution by all parties ofthis Agreement and the Conservancy's possession and use of the Premises for the purposes set forth herein. 12 Garden Center Management Agreement Draft 1/4/07 SECTION 11. CITY'S CONTRIBUTION. The Conservancy shall continue use its best efforts to obtain public/private grant funding and individual/corporate contributions for the support ofthe Botanical Garden. During the term of this Agreement, it is the intent of the City and the Conservancy that Conservancy-initiated funding grows on a continuing basis. During the term of this Agreement, the Conservancy shall include, in its annual proposed budget and/or Programmatic Plan, the funding that it anticipates raising, and the City shall use such representations in evaluating its respective level of contribution for the coming fiscal year, which amount shall be approved as part of the City's own annual budget process. The City initially identified approximately $1.5 million from the Series 2000 General Obligation Bond Program for Phase I capital improvements to the Botanical Garden, of which approximately $1.4 Million remains at the time or execution of this Agreement. The City and the Conservancy herein agree that a vital component of the Conservancy's mission statement, with respect to this Agreement, is to use its best efforts; specifically, to obtain public/private funding contributions for further capital improvements to the Botanical Garden (hereinafter, the Phase II improvements). Accordingly, the Conservancy herein represents that it shall use its best efforts with respect to undertaking a coherent and consistent fundraising effort for the Phase II improvements, and that any funds and contributions received for same shall be kept and maintained by the Conservancy in a separate fund, which funds shall ultimately be conveyed to the City. The City acknowledges that said Phase II improvement funds may be conditioned as to the terms for disbursement therein. To that end, the parties agree to memorialize the transfer of said funds in a separate agreement, to be negotiated between the City and the Conservancy. However, the Conservancy herein acknowledges and understands that the City shall in no way be obligated to proceed with any Phase II improvements until and when funding for same has been identified and secured. SECTION 12. ASSIGNMENT/SUBLET. The Conservancy may not sublet or assign this Agreement, or any part thereof, without the prior written approval of the City, which approval shall be given, if at all, at the sole discretion of the 13 Garden Center Management Agreement Draft 1/4/07 City. Similarly, Conservancy shall not act as an agent or representative on behalf of any other group, organization, or entity, for use or uses set forth in Section 4 of this Agreement, or for any other uses contemplated by this Agreement by any other group, organization, or entity, other than Conservancy. In the event that Conservancy ceases to be a not-for-profit corporation, this Agreement shall be automatically terminated. SECTION 13. USE OF THE BOTANICAL GARDEN IS PRIMARY. The Botanical Garden is for the use of the public for purposes consistent with Section 4 and the public's right to such use shall not be infringed upon by any act of the Conservancy. The Conservancy shall use reasonable efforts to assure that the activities conducted by the Conservancy on the Premises shall not unduly interfere with the solemnity and respectful atmosphere of the adjacent Holocaust Memorial. SECTION 14. SECURITY. The Conservancy shall provide reasonable security to protect the Premises and its equipment, materials and facilities, including any City equipment, furnishings, and fixtures used by Conservancy, as set forth in Subsection 9.3 herein, and shall be solely responsible to the City for any loss or damage to any City equipment, furnishings, and fixtures so used by Conservancy, subject to the City's obligation to use ordinary care in the execution of its responsibilities hereunder, and subject further to the intentional acts and negligence of utility easement holders upon the Premises. SECTION 15. PERMITS; LICENSES; TAXES; APPLICABLE LAWS. The Conservancy agrees to obtain and pay for all permits and licenses necessary for the conduct of its business and agrees to comply with all laws governing the responsibility of an employer with respect to persons employed by the Conservancy. The Conservancy shall also be solely responsible for payment of any and all taxes levied on the Premises and its operations unless such taxes are caused by actions of the City and not anticipated in the budget of the Conservancy approved by the City. In addition, the Conservancy shall comply with all rules, regulations and laws 14 Garden Center Management Agreement Draft 1/4/07 of the City; Miami-Dade County; the State of Florida; and the u.s. Govemment now in force or hereafter to be adopted. SECTION 16. UTILITIES. Subject to budget limitations, the City agrees to continue to pay for the utilities used within the Premises, to the extent such utilities (and such expenses) are customary and consistent with the City's budgeted resources for the Botanical Garden, including but not limited to electric, water, gas, telephone service (defined for purposes herein as one line, exclusive of long distance and internet services), and garbage disposal. The City reserves the right to review said expenses for utilities at any time during the Term of this Agreement. In the event that such charges exceed the budgeted costs for utilities for the Botanical Garden, the City reserves the right, in its sole and absolute discretion, to amend this Section 16, thereby making the Conservancy responsible for the difference( s) in any overages for utility costs. Should the Conservancy not wish to be responsible for such difference( s) in utility charges, the City reserves the right to automatically terminate this Agreement without further notice to Conservancy, and further avail itself of any and all remedies to recoup such utility cost(s) from the Conservancy. SECTION 17. SIGNAGE. Conservancy shall provide, at its cost within the budget submitted to the City, required signs at all public approaches to the Premises. All advertising, signage and postings shall be approved by the City and shall be subject to all applicable planning and zoning requirements of the City. SECTION 18. FORCE MAJEURE. , The performance of any act by Conservancy or the City hereunder may be delayed or suspended at any time while, but only so long as, either party is hindered in or prevented from performance by acts of God, the elements of war, rebellion, strikes, lockouts or any other cause beyond the reasonable control of such party; provided. However, that if the condition of force majeure exceeds for more than a period of ninety (90) days, the City or Conservancy may, at their 15 Garden Center Management Agreement Draft 1/4/07 respective option and discretion, terminate this Agreement. SECTION 19. INSPECTION. The Conservancy agrees that the Premises may be inspected at any time upon reasonable notice by authorized representatives of the City, or by any other State, County, Federal or municipal officer or agency having responsibilities for inspections of such operations and/or premises. The Conservancy agrees to undertake immediately the correction of any deficiency cited by such inspectors on the Premises, which is properly the responsibility of the Conservancy pursuant to this Agreement. SECTION 20. WAIVER OF INTERFERENCE. The Conservancy hereby waives all claims for compensation for loss or damage sustained by reasons of any interference with its operation and management of the Premises by any public agency or official as a result of their enforcement of any laws or ordinances or of any of the rights reserved to the City herein. Any such interference shall not relieve the Conservancy from any obligation hereunder. SECTION 21. INSURANCE REQUIREMENTS. The Conservancy shall maintain, at the Conservancy's sole cost and expense, the following types of insurance coverage at all times throughout the term of this Agreement: a. General liability insurance with not less than the following limits: General aggregate $2,000,000 Products (completed operation aggregate) $2,000,000 Personal and advertising (injury) (Per occurrence) $1,000,000 $1,000,000 16 Garden Center Management Agreement Draft 1/4/07 Fire damage $ 100,000 Medical Expense $ 5,000 Liquor Liability (aggregate) (Per occurrence) $2,000,000 $1,000,000 b. Workers Compensation Insurance shall be required under the Laws of the State of Florida. c. Automobile Insurance shall be provided covering all owned, leased, and hired vehicles and non-ownership liability for not less than the following limits: Bodily Injury $1,000,000 per person Bodily Injury $1,000,000 per accident Property Damage $ 500,000 per accident d. Pesticide liability shall be provided separately, or as part of the general liability coverage, in an amount not less than $1,000,000. e. Fire Insurance shall be the responsibility ofthe City. The policies of insurance referred to above shall not be subject to cancellation or changing coverage except upon at least thirty (30) days written notice to City and then subject to the prior written approval of City. The Conservancy shall provide City with a Certificate of Insurance for each such policy, which shall name the City as an additional named insured. All such policies shall be obtained from companies authorized to do business in the State of Florida with an A.M. Best's Insurance Guide (latest edition) rating acceptable to the City's Risk Manager, and any replacement or substitute company shall also be subject to the approval of the City's Risk Manager. Should the Conservancy fail to obtain, maintain or renew the policies of insurance referred to above, in the required amounts, the City may, at its sole discretion, obtain such insurance, and any sums expended by City in obtaining said insurance, shall be repaid by the Conservancy to City, plus ten percent (10%) of the amount of premiums paid to compensate City for its administrative costs. If the Conservancy does not repay City's expenditures within fifteen (15) days of demand, the total sum 17 Garden Center Management Agreement Draft 1/4/07 owed shall accrue interest at the rate of twelve percent (12%) until paid, and such failure shall be deemed an event of default hereunder. SECTION 22. INDEMNIFICATION. 22.1 The Conservancy shall indemnify, hold harmless and defend the City, its agents, servants and employees from and against any claim, demand or cause of action of whatsoever kind or nature arising out of error, omission, or negligent act of the Conservancy, its agents, servants or employees in the performance of services under this Agreement. 22.2 In addition, the Conservancy shall indemnify, hold harmless and defend the City, its agents, servants and employees from and against any claim, demand or cause of action of whatever kind or nature arising out of any misconduct of the Conservancy not included in the paragraph in the subsection above and for which the City, its agents, servants or employees are alleged to be liable. This subsection shall not apply, however, to any such liability as may be the result of the willful misconduct of the City, its agents, servants or employees. 22.3 Subroe:ation. The terms of insurance policies referred to in Section 21 shall preclude subrogation claims against the Conservancy, the City and their respective officers, employees and agents. SECTION 23. NO LIENS. The Conservancy agrees that it will not suffer, or through its actions or anyone under its control or supervision, cause to be filed upon the Premises any lien or encumbrance of any kind. In the event any lien is filed, the Conservancy agrees to cause such lien to be discharged within ten (10) days therefrom, and in accordance with the applicable law and policy. If this is not accomplished, the City may automatically terminate this Agreement, without further notice to the Conservancy. SECTION 24. CONSERVANCY EMPLOYEES AND MANAGERS. The City and the Conservancy recognize that in the performance ofthis Agreement, it may be necessary for the Conservancy to retain employees and/or managers to effectuate and optimize the 18 Garden Center Management Agreement Draft 1/4/07 Conservancy's management and operation of the Botanical Garden. Any employees, agents, independent contractors, volunteers, and/or other individuals and/or entities retained by the Conservancy for such purpose( s) shall not be deemed to be agents, employees, partners, joint venturers or associates of the City and shall not obtain any rights or benefits under the civil service or pension ordinances of the City or any rights generally afforded classified or unclassified employees of the City; further they shall not be deemed entitled to the Florida Worker's Compensation benefits as employees of the City. Additionally, the Conservancy and any persons employed by it, or volunteers acting under the authority and/or with the permission of Conservancy, shall never have been convicted of any offense involving moral turpitude or felony. Failure to comply with this provision shall constitute a violation of this Agreement. The Conservancy shall have an experienced manager or managers overseeing the Premises at all times. Any criminal activity on the Premises caused by or knowingly permitted by the Conservancy shall result in automatic termination of this Agreement. SECTION 25. NO IMPROPER USE. The Conservancy will not use, nor suffer or permit any person to use in any manner whatsoever, the Premises for any improper, immoral or offensive purpose, or for any purpose in violation of any Federal, State, County, or municipal ordinance, rule, order or regulation, or of any governmental rule or regulation now in effect or hereafter enacted or adopted. The Conservancy shall not use the Premises for any unlawful purpose and shall comply with all laws, permitting, and licensing requirements now in force or hereafter adopted, applicable to the Premises or the activities, uses, and/or business(es) conducted on the Premises. The Conservancy agrees not to use the Premises for, or to permit operation of any offensive or dangerous activity, nuisance or anything against public policy. Except as may result from acts of force majeure, the Conservancy agrees that it will not allow the Premises to become unoccupied or vacant. The Conservancy shall take appropriate precautions to prevent fire on the Premises, maintaining existing fire detection devices and extinguishing equipment at all times. 19 Garden Center Management Agreement Draft 1/4/07 SECTION 26. NO DANGEROUS MATERIALS. The Conservancy agrees not to use or permit in the Premises the storage of illuminating oils, oil lamps, turpentine, gasoline (except for small containers [5 gallons or less] for machinery), benzine, naphtha, or other similar substances, or explosives or any kind, or any substance or thing prohibited in the standard policies of fire insurance companies in the State of Florida. SECTION 27. NO CLAIM AGAINST CITY OFFICERS, EMPLOYEES, INDIVIDUALS. It is expressly understood and agreed by and between the parties hereto that all individuals, employees, officers, and agents ofthe City are acting in a representative capacity and not for their own benefit; and that neither the Conservancy nor any occupant shall have any claim against them or any of them as individuals in any event whatsoever in conjunction with any acts or duties which are reasonably related to the performance of their duties. SECTION 28. DEFAULT AND TERMINATION. If either party fails to perform in accordance with any of the terms and conditions of this Agreement, and such default is not cured within fifteen (15) days after written notice is given, the aggrieved party shall have the right to immediately terminate this Agreement and, as the case may be either vacate or re-enter the Premises, without further notice or demand. At its option, either party may also pursue any and all legal remedies available to seek redress for such default. SECTION 29. TERMINATION FOR CONVENIENCE. Notwithstanding the provisions of Section 28 above, this Agreement may be terminated by the City, for convenience and without cause, upon the furnishing of sixty (60) days written notice to the Conservancy. SECTION 30. NOTICES. All notices from the City to the Conservancy shall be deemed duly served if mailed by 20 Garden Center Management Agreement Draft 1/4/07 registered or certified mail to the Conservancy at the following address: Miami Beach Garden Conservancy, Inc. Attention: Executive Director 2000 Convention Center Drive Miami Beach, Florida 33139-1821 All notices from the Conservancy to the City shall be deemed duly served if mailed to: City of Miami Beach City Manager 1700 Convention Center Drive Miami Beach, Florida 33139 With copies to: City of Miami Beach Attention: Kent Bonde, Redevelopement Coordinator 1700 Convention Center Drive Miami Beach, Florida 33139 The Conservancy and the City may change the above mailing addressed at any time upon giving the other party written notification. All notice under this Agreement must be in writing. SECTION 31. NO DISCRIMINATION. The Conservancy agrees that there shall be no discrimination as to race, sex, color, creed, national origin, physical handicap, or sexual orientation in the operations referred to by this Agreement; and further, there shall be no discrimination regarding any use, service, maintenance or operation of the Premises. All facilities located on the Premises shall be made available to the public; subject to the right of Conservancy to establish and enforce reasonable rules and regulations to provide for the safety, orderly operation and security of the facilities. SECTION 32. VENUE. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict oflaws. 21 Garden Center Management Agreement Draft 1/4/07 The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, ifin federal court. BY ENTERING INTO THIS AGREEMENT, CITY AND CONSERV ANCE EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MA Y HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. SECTION 33. LIMITATION OF LIABILITY. The City desires to enter into this Agreement only if in so doing the City can place a limit on its liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $1 0,000. Contractor hereby expresses his willingness to enter into this Agreement with Contractor's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $1 0,000, less the amount of all funds actually paid by the City to Contractor pursuant to this Agreement. Accordingly, and notwithstanding any other term or condition of this Agreement, Contractor hereby agrees that the City shall not be liable to the Contractor for damages in an amount in excess of $1 0,000, which amount shall be reduced by the amount actually paid by the City to Contractor pursuant to this Agreement, for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Section 768.28, Florida Statutes. 22 Garden Center Management Agreement Draft 1/4/07 IN WITNESS WHEREOF, the parties hereto hav their seals to be affixed; all as of this day and year first :~~~~ City Clerk Robert Parcher their names to be signed and Secretary MIAMI BEACH GARDEN ~l:j~NC. President ~ Attest: Print Name \Z.. 'lttwv< 1) Gr. ,,)(.. H::,o Print Name F:\A TTO\AGUR\AGREEMN1\GARDNCTR.MGT APPROVED AS TO FORM & LANGUAGE OR CUnON I }-n) 1>7 Date 23 Garden Center Management Agreement Draft 1/4/07 STATE OF FLORIDA ) ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this 6 -tA day of P:;lYIIIl'1t' , 2007, by Mayor David Dermer and Robert Parcher, City Clerk, or their designees respect~vely, on behalf of the CITY OF MIAMI BEACH, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this J:/tIJ day of r ~, 200t ?i Notary lie, S Commission No.: My Commission at Large I<S1RY HERNANDEZ .:r. MY COMMISSION I DO 626373 : ' EXPIRES: May 3, 2011 _nw-.PubIc- STATE OF FLORIDA ) ) ) SS: COUNTY OF MIAMI-DADE The f~ego.iyg in~tAwas a~knowledged before me this ~daY of O~ ' 2007, by ~) , on behalf of the MIAMI BI(XCH GA EN CONSERVANCY, INC., known to me to be the persons described in and who executed the foregoing instrument, and ackn)lwle?ged to and befofl( me that they executed said instrument for the purposes therein expressed. L~ ~ WITNESS my hand and official seal, this &1ay of a~ ,2007. Jr; U:___( N6~tr-;~'~L&g< Commission No.: My Commission Expires: RJA\!.-".' F:\A TTO\AGUR\AGREEMNTIGARDNCTRMGT (i)'~ KEARY HERNANDEZ !'i :~ MY COMMISSION # DO 626373 ~. . .. . . EXPIRES: May 3, 2011 ~P.r.,~' BondedThruNolalypLbIIcUnderwrlters 24