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RESOLUTION NO. 9 7_ 290
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AN AMENDMENT, IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY, TO THE REVOCABLE PERMIT ISSUED TO BAYSIDE
SEAFOOD RESTAURANT, INC. ("BSR") ON DECEMBER 21, 1994,
TO PROVIDE FOR: A) A REVISION TO THE MONTHLY FEE; B) A
CREDIT FOR JANITORIAL SERVICES; C) A PAYMENT PLAN FOR
MONIES DUE TO THE CITY; D) PROCUREMENT OF A WATER
CONSUMPTION SURVEY; AND E) A PERSONAL GUARANTEE FROM
THE OWNER OF BSR GUARANTEEING THE MONIES OWED TO THE
CITY,
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized' to execute an amendment, in a form
acceptable to the City Attorney, to the Revocable Permit issued to Bayside Seafood Restaurant,
Inc., on December 21, 1994, to provide for the following:
A) Revision to the monthly fee effective February 1, 1997, to provide for a
$2,500 monthly guarantee plus eight percent (8%) of gross receipts greater
than $500,000 per year prorated on a monthly basis.
B) A one-time credit to BSR in the amount of $12,920.32 for the provision of
janitorial services for the period of November, 1995, through January, 1997.
C) Additional $1,000 monthly payment to the City due on the 1st day of each
month commencing February 1, 1997, as repayment of fees owed to the City
in the amount of $32,282.48 (the "existing debt") for the period of November,
1995, through January, 1997. Said payment shall remain payable monthly
' The herein authorization is further subject to compliance with all requirements that may be imposed by the
City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions.
MEET �FO
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APR 10 9997
Resolution No.
97- 290
until all amounts due are paid in full, The amount of $32,282.48 is the
balance due after giving the credit provided in "B" above.
D) Effective February 1, 1997, BSR shall receive a monthly credit of $785 for the
provision of janitorial services. This credit shall be given in the form of a
reduction of the existing debt,
E) BSR shall procure a new water consumption survey to be performed by an
engineer approved by the City, The City shall share in the cost of the survey
by permitting BSR to reduce the existing debt by 50% of the actual survey
cost. The findings of said survey shall be binding upon the parties. The City
shall adjust amounts due for water service retroactive to December, 1994,
based upon the usage findings of the new consumption survey. The adjusted
usage amount shall remain payable monthly to the City by BSR.
F) A personal guarantee from the owner of BSR.
Section 2, This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this 10th day of April, 1997.
�trf�
% JOE CA LLO, MAYOR
TIES : V
WALTER F
CITY CLERK
PREPARED AND APPROVED BY:
JULIE 0. BRU
ASSISTANT CITY ATTORNEY
W1792:CSK:JOB
2-
APPROVED AS TO FORM AND
CORRECTNESS:
N
A. 0 I JO , III
C TY A TO N Y
97- 290
0
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Walter Foeman DATE May 6, 1997
City Clerk
SUBJECT:
Resolution 97-290 adopted
on April 10, 1997
FROM: Dena Bianchino, Assistant Director REFERENCES
Asset Management Division ENCLOSURES:
Department of Planning and Development
FILE
As a follow-up to the City Commission meeting of April 10, 1997, this office has
computed the final amounts due from Bayside Seafood Restaurant, Inc. ("BSR")
which should be reflected in Resolution No. 97-290. The figures presented to the
City Commission both during the meeting and in that memorandum from the City
Manager dated April 8, 1997 (copy attached), were approximate based on the
information available at that time and included a calculation of the value of services
performed by BSR and the City through March, 1997, As the Commission agreed to
provide a payment plan for the monies owed through January, 1997 in the amount
of $45,202.80, it is appropriate for the value of the services to have the same cut-off
date. Therefore, the credit amount to be provided to BSR through January, 1997 is
$12,920.32 leaving a balance of fees due to the City of $32,282.48.
If you require additional information, please call me at 416-1450.
Enclosure
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97- 290
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO : Honorable Mayor and Members
of the City Commission
FROM : and MarQ11P,z
City Manager
DATE : APR — 8 1997
FILE :
SUBJECT : RDVISDD RECOMMENDATION
Bayside Seafood Restaurant
REFERENCES:
ENCLOSURES:
This memorandum serves as a follow-up to the City Commission meeting of March 27,
1997 regarding (1) an amendment to the existing fee structure as provided in the
Revocable Permit issued to Bayside Seafood Restaurant, Inc. ("BSR") dated December
21, 1994; (2) a credit for janitorial services performed; and (3) prepayment of rent and
investment of approximately $250,000 by BSR in the restaurant located at 3501
Rickenbacker Causeway to be amortized over a five year period.
BACKGROUND
As previously stated to the City Commission at its meeting of March 27, 1997, based
upon the unaudited monthly reports submitted by BSR for the period of January, 1995
through January, 1997, BSR owes the City monthly fees in the amount of
$40,686.72 plus tax in the amount of $4,516.08 for a total amount due of
$45,202.80.
There appeared to be a consensus at this meeting to provide for an amendment to the
fee structure to be as follows:
a) $2,500 monthly minimum guarantee
b) 8% of gross receipts greater than $500,000lyear prorated per month
c) $1,000 monthly payment towards payment of fees owed.
The City Commission expressed concern about the payment plan for monies owed in the
event BSR vacates the site prior to the debt being totally repaid.
9'7- 290
I--Ionorable Mayor and Members
of the City Commission
Page 2
]RECOMMENDATION:
1) Janitorial and Garbage Services
At the March 27, 1997 Commission meeting, BSR presented new information to the
Commission regarding janitorial and utility costs and requested a credit for janitorial
services in the amount of $23,575. We have reviewed the janitorial services provided by
BSR and the garbage services provided by the City and our assessment indicates that
BSR has provided services valuing $13,843.20 more than the services provided by the
City.
Based on the above, in the event the City Commission elects to award a credit to BSR
for the above services, BSR would owe a balance of $31,359.60.
For future operations, I propose the following:
a) BSR shall provide garbage services at its own expense. BSR shall not be permitted
to utilize City dumpsters.
b) BSR shall provide janitorial services for the public restrooms and receive a monthly
credit in the amount of $ 785.00 which shall be reduced from the debt owed to the
City.
2) Water Services
With respect to water service, BSR has continually disputed the amount owed claiming
the level of usage for which they are being charged is excessive.
I propose that BSR immediately procure a new water consumption survey to be
performed by an engineer approved by the City. The engineer shall evaluate the
restaurant's water usage including a proportionate share of the restroom facilities. The
City would share in the cost of the survey by permitting BSR to reduce its fees owed by
50% of the actual survey cost. BSR and the City must agree that the consumption
survey findings shall be binding and the amount owed for water service will be adjusted
in accordance with the findings retroactive to December, 1994. The adjusted usage
amount shall remain payable monthly to the City by BSR for future operations.
97- 290
Honorable Mayor and Members
of the City Commission
Page 3
3) Fees owed to City
As referenced above, I am proposing BSR pay the City $1,000 per month towards
payment of back fees and receive a credit against back fees in the amount of $785 per
month for the provision of janitorial services to the public restrooms. In exchange for
this payment plan, I suggest that BSR be required to sign an agreement whereby BSR
acknowledges that BSR and its principals, personally and individually, shall remain
liable for the past due fees even after it vacates the site and that upon such vacation,
BSR or its principals shall pay to the City the amount of $2,000 per month until such
time as the debt is paid in full. The outstanding debt shall further bear interest at the
rate of 6% per annum.
4) Review by Commission
In the event the City Commission adopts an amendment to the Permit thereby allowing
BSR to continue operating at the site, I would further recommend that the Commission
review this matter in one year to determine whether any conditions affecting BSR's
operations have changed justifying a modification to the terms and conditions so the
City may continue to receive a fair return on the property.
5) Proposal to prepay rent and invest $250,000 in the premises to be
amortized over a five year period.
The City continues to recommend disapproval of this proposal.
The City's rejection is based on a previous opinion by the Law Department that an
amendment to the Permit to provide for substantial improvements would be in conflict
with the City Charter and provide an unfair advantage to BSR in any future bid. To
accomplish this type of investment, the City should competitively bid the food and
beverage concession which could be done separately or as part of a larger development
package.
Additionally, the City is contemplating the issuance of a RFP for the Marine Stadium
area, subject to approval by the Commission, which would include the premises occupied
by BSR. From a business perspective, it is not deemed to be in the best interest of the
City to authorize a substantial expenditure at this site at this time. A successful
proposer may elect to relocate the restaurant to a more desirable location on the
property which would result in the proposer unnecessarily paying for improvements
which would be demolished. To also force a proposer to buy the goodwill of a restaurant
when it may have its own established reputation would be unfair. Additionally, all
proposers will take any buyout costs into consideration when bidding on the property
which could negatively impact the financial return to the City under a future lease.
97- 290
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO : Honorable Mayor and Members
of the City Commission
FROM : �,� � Marquez
City Manager
;E
DATE : APR 2 1997 FILE
SUBJECT
Discussion Item
Bayside Seafood Restaurant
REFERENCES:
ENCLOSURES:
At the March 27, 1997 City Commission meeting, there appeared to be a consensus
to provide for an amendment to the fee structure provided in the Revocable Permit
issued to Bayside Seafood Restaurant, Inc. ("BSR") dated December 21, 1994, to be
as follows:
a) $2,500 monthly minimum guarantee
b) 8% of gross receipts greater than $500,000/year prorated per month
c) $1,000 monthly payment towards payment of fees owed.
At said meeting, the Commission expressed concern about the payment plan for
monies owed in the event BSR vacates the site prior to the debt being totally repaid.
In accordance with the Commission's directive, I have reviewed this issue as well as
the new information submitted by BSR regarding janitorial, water and garbage
services and I am prepared to discuss same.
97- 290 1