2008-26781 ResoRESOLUTION NO. Zoos-z6~si
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING, ON FIRST READING, A
LEASE AGREEMENT BETWEEN THE CITY AND SUNRISE COMMUNITY,
INC., FOR USE OF APPROXIMATELY 2,500 SQUARE FEET OF CITY-
OWNED PROPERTY, LOCATED AT 8128 COLLINS AVENUE FOR THE
PURPOSE OF OPERATING AND MANAGING A VOCATIONAL TRAINING
SITE FOR DEVELOPMENTALLY DISABLED ADULTS; SAID LEASE
HAVING A TERM OF ONE (1) YEAR AND THREE (3) MONTHS,
COMMENCING ON MAY 1, 2008, AND ENDING ON JULY 31, 2009;
FURTHER WAIVING, BY 5/7THS VOTE, THE COMPETITIVE BIDDING
AND APPRAISAL REQUIREMENTS, AS REQUIRED BY SECTION 82-39
OF THE MIAMI BEACH CITY CODE, FINDING SUCH WAIVER TO BE IN
THE BEST INTEREST OF THE CITY; AND FURTHER SETTING A PUBLIC
HEARING ON APRIL 16, 2008, FOR THE SECOND READING (AND FINAL
APPROVAL) OF THE LEASE AGREEMENT
WHEREAS, the City had been providing services for the developmentally disabled
at the City-owned property, commonly referred to as the Log Cabin Training Center,
located at 8128 Collins Avenue, from 1975 until 2005; and
WHEREAS, on March 10, 2005, the City issued Request For Proposals, No. 12-
04/05 to identify a qualified provider to ensure the continued provision of services to the
developmentally disabled population served at the Log Cabin Training Center (the RFP);
and
WHEREAS, on July 6, 2005, the Mayor and City Commission selected Sunrise
Community, Inc., as the top ranked firm pursuant to the RFP; and
WHEREAS, on June 7,' 2006, the Mayor and City Commission adopted Resolution
No. 2006-26230, approving a Lease Agreement with Sunrise Community, Inc., on first
reading, and set the public hearing for second reading; and
WHEREAS, on July 12' 2006, the Mayor and City Commission adopted Resolution
No. 2006-26270, approving the aforestated Lease Agreement, on second reading,
following a duly noticed public hearing; the initial term of said Lease retroactively
commenced on September 1, 2005, and ended on August 31, 2006, and further provided
for two (2) additional one (1) year renewal terms, at City Manager's discretion; and
WHEREAS, on October 5, 2007, the City Manager received a letter from Sunrise
Community, Inc., attached as Exhibit "A" hereto, requesting that the term of the current
Lease be extended based upon Sunrise's past improvements to the Demised Premises,
estimated by Sunrise to be approximately $20,000, as well as intended proposed
improvements (should the Lease be extended), estimated by Sunrise at approximately
$15,000; and
WHEREAS, the current Lease provides for no further extensions; however, based
upon Sunrise Community, Inc.'s satisfactory past performance, and conditioned further
upon Sunrise's commitment to make the aforestated proposed $15,000 improvements to
the Demised Premises, the Administration would recommend entering into a new Lease
Agreement with Sunrise Community, Inc.; said Lease for a term of one (1) year and three
(3) months; and
WHEREAS, the parties would, upon the approval and execution of the new Lease,
agree to terminate the remaining term on the existing Lease (which expires on August 31,
2008); and
WHEREAS, the Administration would hereby recommend that the Mayor and City
Commission approve the new Lease Agreement, on first reading, and further set the public
hearing for second reading and final approval of said Agreement; and
WHEREAS, Section 82-39, as amended, further provides for the waiver of the
competitive bidding and appraisal requirements, by 5/7ths vote of the Mayor and City
Commission, upon a finding by the Mayor and City Commission that the public interest
would be served by waiving such conditions; the Administration would also hereby
recommend that the Mayor and City Commission approve said waiver.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve, on first reading, the attached Lease Agreement between the
City and Sunrise Community, Inc., for the use of the one story building located at 8128
Collins Avenue, encompassing approximately 2,500 square feet ofCity-owned property, for
the purpose of operating and managing a vocational training site for developmentally
disabled adults; said Lease having a term of one (1) year and three (3) months,
commencing on May 1, 2008, and ending on July 31, 2009; further waiving, by 5/7ths vote,
the competitive bidding and appraisal requirements, as required by Section 82-39 of the
Miami Beach City Code, finding such waiver to be in the best interest of the City; and
further setting a public hearing on April 16, 2008, for the second reading (and final
approval) of the Lease Agreement.
PASSED and ADOPTED this 12th day of March , 2008.
ATTEST:
~/~
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a.
CITY CLERK
Robert Parcher
JMG:TH:ACV:rIr
MAYOR
Matti Herrera Bower
APPROVED AS TO
FORM & LANGUAGE
~ FOR E~CUTIO~
F:\ECON\$ALL\ASSET1Log Cabin\SunriseCommunity.2ndLease.lstReading.RES.doc /'` ~ r ~ ~ ~ ~~
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution, approving, on first reading a lease agreement between the City and Sunrise Community Inc. for
use of approximately 2,500 square feet ofCity-owned property located at 8128 Collins Ave. for the purpose of
operating and managing a vocational training site for developmentally disabled adults for a term of 1 year and
3 months commencing May 1, 2008 and ending July 31, 2009. Further waiving, by 5/7ths vote, the
competitive bidding and appraisal requirements, as required by section 82-39 of the City Code finding such
waiver to be in the best interest of the City and further setting a public hearing on April 16, 2008 for the second
reading and final approval of the lease agreement.
Key Intended Outcome Supported:
Ensure well-maintained facilities.
Supporting Data (Surveys, Environmental Scan, etc.): N/A
Issue:
Should the City Commission adopt the Resolution?
item Summa
The City had provided service for developmentally disabled vocation training at the Log Cabin Training
Center from 1975 until 2005. The City issued an RFP on March 10, 2005 for qualified providers to ensure
the continued provision of services to the developmentally disabled population. On July 6, 2005 Sunrise
Community Inc was selected as the top ranked firm.
On June 7, 2006 a lease agreement was approved by the City Commission for the Demised Premises
which retroactively commenced on September 1, 2005 and ended on August 31, 2006 with two additional
one year terms. On July 2, 2007 Log Cabin Enterprises Inc., the entity managing the plant nursery which
provided the sheltered worksite for the training facility, merged with Sunrise Community Inc.
On October 5, 2007 Sunrise Community Inc. requested an extension of their lease agreement until the year
2012 and proposed approximately $40,000 in improvements to the facility by Sunrise Community Inc.
There are no additional extensions in the lease agreement terminating August 31, 2008. At that time, the
lease would again be subject to an RFP. In lieu of the requested changes as proposed in the request, the
Sunrise Community Inc. is requesting that the lease for the training facility be extended for one year and
three months which would make it coterminous with the lease agreement for the nursery, which is now run
by the Sunrise Community Inc. Sunrise commits to $15,000 in improvements during the first year of this
new lease. The current lease will be terminated upon execution of this new lease agreement.
As the two entities are interrelated in operations, it would benefit the City to have the lease agreements
coterminous as they are also both located on the same parcel of City-owned property.
The Administration recommends that the Mayor and City Commission adopt the Resolution approving the
lease agreement with the Sunrise Community Inc. for the developmentally disabled adult training center.
Adviso Board Recommendation:
N/A
Financial Information:
Amount Account Approved
Source of Funds:
Total
City Clerk's Office Legislative Tracking:
Ana Cecilia Velasco X 6727 -1
Si n-Offs:
Department Director A ist nt ity Manager City Manager
ACV TH JMG -
T:WGENDA\2008\March 12\Regular\Sunrise Communlty~xf8 Lease 1st reading SUM.doc / /
J~ (~ ~ /~ ~ ~ ~~~ ~ AGEPIDA ITEM ~~r'
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, v,~ww.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City mmission
FROM: City Manager Jorge M. Gonzalez .
FIRST READING
DATE: March 12, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, ON FIRST READING, A LEASE
AGREEMENT BETWEEN THE CITY AND SUNRISE COMMUNITY, INC., FOR
USE OF APPROXIMATELY 2,500 SQUARE FEET OF CITY-OWNED
PROPERTY, LOCATED AT 8128 COLLINS AVENUE FOR THE PURPOSE OF
OPERATING AND MANAGING A VOCATIONAL TRAINING SITE FOR
DEVELOPMENTALLY DISABLED ADULTS; SAID LEASE HAVING A TERM OF
ONE (1) YEAR AND THREE (3) MONTHS, COMMENCING ON MAY 1, 2008,
AND ENDING ON JULY 31, 2009; FURTHER WAIVING, BY 5/7THS VOTE, THE
COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS, AS REQUIRED
BY SECTION 82-39 OF THE MIAMI BEACH CITY CODE, FINDING SUCH
WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND FURTHER
SETTING A PUBLIC HEARING ON APRIL 16, 2008, FOR THE SECOND
READING (AND FINAL APPROVAL) OF THE LEASE AGREEMENT
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission approve the new
Lease Agreement, on first reading, and further set the public hearing for second reading and
final approval of said Agreement.
FUNDING
There are no funds required for this execution of this lease agreement.
ANALYSIS
From 1975 until 2005, the City had been providing services for the developmentally disabled
at the City-owned property, commonly referred to as the Log Cabin Training Center, located
at 8128 Collins Avenue. On March 10, 2005, the City issued Request for Proposals No. 12-
04/05 to identify a qualified provider to ensure the continued provision of services to the
developmentally disabled population served at the Log Cabin Training Center (the RFP). On
July 6, 2005, the Mayor and City Commission selected Sunrise Community, Inc., as the top
ranked firm pursuant to the RFP.
Subsequently on June 7, 2006, the Mayor and City Commission adopted Resolution No.
2006-26230, approving a Lease Agreement with Sunrise Community, Inc., on first reading,
and on July 12' 2006, the Mayor and City Commission adopted Resolution No. 2006-26270,
approving the aforestated Lease Agreement, on second reading, following a duly noticed
City Commission Memorandum -Sunrise Community 2"d lease 15` reading
March 12, 2008
Page 2 of 3
public hearing; the initial term of said Lease retroactively commenced on September 1,
2005, and ended on August 31, 2006, and further provided for two (2) additional one (1) year
renewal terms, at City Manager's discretion.
As part of this agreement, the following terms were significant:
• Base Rent for the Demised Premises totaling six thousand dollars ($6,000) per year
payable in monthly installments;
• Additional Rent of four hundred fifty dollars ($450.00) per month for the use of
furniture and fixtures on site;
• Comprehensive General Liability, Workers Compensation and Employers Liability,
All-Risks Property and Casualty Insurance;
• Maintenance of all non-structural and interior portions of the Demised Premises;
• Review and Monitoring of permitted uses by the City's Department of Neighborhood
Services.
On July 1, 2007 Log Cabin Enterprises, Inc. which managed the nursery, merged with the
Sunrise Community, Inc. with the Board of Directors remaining as the controlling body for the
nursery operations. The sole purpose of the plant nursery is to provide an educational and
sheltered work program for developmentally disabled adults trained by Sunrise Community,
Inc. at the Log Cabin Training Center. The relationship between the training center and the
nursery was established to be symbiotic.
In a letter addressed to the City Manager dated October 5, 2007, Sunrise Community Inc.
requested an extension of the current lease to 2012 based on past improvements made by
Sunrise Community Inc. to the Demised Premises estimated at $20,000 as well as intended
proposed improvements approximated by Sunrise at $40,000. The current lease has been
extended twice and terminates August 31, 2008 with no further extensions. Although an
extended term of three (3) years with two (2) three (3) year renewals would be publicly bid
through a Request for Proposal due to the length of time, based upon Sunrise Community
Inc.'s satisfactory past performance, and conditioned further upon Sunrise's commitment to
make proposed $15,000 improvements to the Demised Premises within the next twelve (12)
months, the Administration would recommend entering into a new Lease Agreement with
Sunrise Community Inc. for a term of one (1) year and three (3) months. While providing for
the improvements proposed, it allows both leases, now under control of Sunrise Community
Inc. to become coterminous both terminating on July 31, 2009. As these two operations are
interrelated, and exist physically on the parcel of City-owned property, it would be to the
benefit of the City to address both Tenants within corresponding lease terms.
As part of the proposed new lease, Sunrise Community Inc. will provide the all previous
terms delineated in the current lease agreement with the exception of Additional Rent.
Sunrise Community Inc. is purchasing the inventory from the City prior to the
commencement of the new lease agreement and will no longer provide additional rent for
the use of furniture and fixtures.
Upon the approval and execution of the new Lease Agreement, the Parties agree to
terminate the remaining term on the existing Lease (which expires on August 31, 2008).
Section 82-39, as amended, further provides for the waiver of the competitive bidding and
appraisal requirements, by 5/7ths vote of the Mayor and City Commission, upon a finding by
the Mayor and City Commission that the public interest would be served by waiving such
City Commission Memorandum -Sunrise Community 2"d lease 15` reading
March 12, 2008
Page 3 of 3
conditions; the Administration would also hereby recommend that the Mayor and City
Commission approve said waiver.
A Planning Department Analysis will be presented upon second and final reading on April
16, 2008. This analysis will address issues pertinent to urban design, historic preservation
and land use planning and zoning.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the new
Lease Agreement, on first reading, and further set the public hearing for second reading and
final approval of said Agreement.
JMGlTH/ACV
T:IAGENDA120081March 121RegularlSunrise Community 2nd Lease 1st reading MEM.doc
Exhibit A
October 5, 2007
SUNRISE
COMMUNITY, INC. .Jorge M. Gonzalez
em,n,wor.c~•r«a„,~.n,n~,•W~. City Manager
City of Miami Beach
9040 Sunset Drive 1700 Convention Drive
Miami, Ploricia a3 V:f Miami Beach, f~'lorida 33139
Tc•I. iISS9G.91W0
rar 30S.S9t).$24p B);: Sun)-ise Group, Inc. -Request for Lease Amendment
wwwsunrisegmup.org
Dear Mr. Gonzalez
Officers of the Board
Chairperson Please allow this letter to serve as formal request for a Lease Amendment
Sirl,~urn r. kia~¢, cul, ct,l c pertaining to the Agreement between the City of Miami Beach and Sunrise
First Vice Chairperson Group, lnc. dated the 30it' of May, 2006. Please find copy of said agreement
tinwrn M. Wcingcr, Fxl.
attached hereto.
Secund Yce Chairpersrx,
I'auliix• n. Yam{;, fclD
secretary Sunrise Community, Inc. (also known as the "Sunrise Group, Inc." and
Gcraltluu• Ti K:kt•r hereinafter referred to as Sunrise) commenced operation of the Adult Day
rrcasarer Training Center located at 8128 Collins Avenue after taking over from the
r. k,~~~, M<Atukin ut. f,<;. City of Miami Beach in May of `1006. Sun)•ise implemented a Corrective
Action Ylan in October of 2006. We are rur)•ently awaiting response to our
Board of Directors September l7,L007 request for afollow-up inspection from the City of Miami
i k,rnu,y av. ,utari,• Beach's Uffice of Community Services, Neighborhood Services Department.
r,t,.=i„ r. c„~t,y
[ °"""' c"""'~`'` Concurrent to Sunrise's programmatic efforts at Log Cabin, Sunrise
13amcu n. cnt•nln+);. i ~t;n Community formally merged with L.og Cabin Enterprises, Inc. on duly 1, `L007.
kirh:rrl tl. tikCarthy
kuVxvl I I. Mnring, CLU. CFr To date, Sunrise has achieved the following
Daniel !~ o'C,mnrll. [.dD
k„t,• i{. ru~r,+-Pal.x ius - Secured all appropriate insurance for the property located at 8128
Ir,,,. ~, u,,,,,, Collins Avenue.
cir,ri., n. w<•uu•rin};t.,,, D Paid an outstanding audit amount on Log Cabin Enterprises' workers'
M,aiiyn .~t. wy,,a. compensation policy.
D Paid all past IRS 941 forms (quarterly payroll tax reports.)
Officers of the Corporation Y (:oordinated the completion of the 1''Y 2007 financial statements.
President/CEO
cE~,iif~w.LtYKi,,Ir. AS of August 2007, Sunrise has invested close to $20,000 in improvements to
Secretary/Treasurer [.og Cabin Enterprises. With these operational tasks successfully addressed,
L,nu~s c;. w,•r•k., r1,D j,og Cabin's Board of Directors now has the full support of Sunrise's corporate
operations and the opportunity to operate as a Sunrise affiliate. As such, we
respectfully request that the Lease Agreement "'t'enant" he amended and
reflect "Sunrise Community, lnc." (previously "Sunrise Group, Tnc.") as
°Tenant". 't'he revision would read as follows
it nc)n-hrc)iit nr~;~.lrliz.[tic,n !r,)nslr~rrllin,z;
fllf• livc~.ti nl l)c'~)1)Ic' with rl[wc~li,lu)Ir~nl,.i1 clisal,ilitic~~
'`THIS LEASE AGREEMENT, made this _ day of .2007, by
and between the CITY OF MIAMI BEACH, a Florida municipal
corporation, (hereinafter referred to as "City" or "Landlord"), and
SUNRISE COMMUNITY, INC., a Florida not•for•profit corporation
(hereinafter referrod to as "Tenant").
Concurrently, we ask that said (,ease Agreement also be amended to reflect a
concurrent end date with the Lease Agreement between the City of Miami
Beach and I.og Cabin Ente3•prisea, Inc. (request that "Tenant" also be
amended to reflect "Sunrise Community, Inc.) dated the 20~^ day of July, 2006.
We ask that both leases be extended to run through the 31~~ day of August
2012.
Said request is based upon the investment made by Sunrise to date since the
merger with Log Cabin Enterprises. In addition, Sunrise intends to cx~mplete
substantial upgrades to the grounds and facilities located at 8128 Collins
Avenue. Initial estimates for the work to improve the facility arc
approximately $40,000. Accordingly, Sum•iae is seeking the above requested
changes and a ]anger term lease to better protect its proposed investment in
the property
Your consideration and approval of these three items is greatly appreciated
1. Revise parties to ~•ead the City of Miami Beach and Sunrise
Community, Inc.
2. Lxtond lease termination date to August 31, 2012.
3. Allow this Lease Amendment to run concurrently with the
programmatic lease between the City of Miami Beach and Sunrise,
both terminating on August 37, 201`l.
Attached please find color renderings of the proposed upgrades. Should you
have specific questions ot• need more information regarding the requested
amendment, please feel free to contact me directly at (306) 273.30 [ 1. Your
wnsidcration of the above requested revisions is greatly appreciated.
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