HomeMy WebLinkAboutM-93-0678K3
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM.
TO : The Honorable Mayor and Members DATE : i "'1 ti., OCT
T o 6 1993 FILE
�„� of the City Commission
SUBJECT : Resolution Authorizing
Execution of Amendment
to Agreement
FROM Cesa io REFERENCES:
City ger ENCLOSURES:
RECOMMENDATION:
It is respectfully requested that the City Commission adopt the
attached resolution authorizing the City Manager to execute
Amendment No. 1 to the Management Agreement, in substantially the
attached form, with the Boat Yard Management Company, Inc., for the
management, maintenance and operation of City -owned property known
as the Dinner Key Boat Yard, located at 2640 South Bayshore Drive,
Miami, Florida, said amendment modifying certain terms and
conditions of the Agreement, authorized pursuant to Resolution No.
92-690, adopted October 22, 1992.
BACKGROUND:
The Office of Asset and Grant Management has prepared the attached
legislation to provide amendments to certain terms and conditions
of the Management Agreement with Boat Yard Management Company, Inc.
Specifically, these amendments will provide for extension of the
Management Agreement on a month -to -month basis and provide for a
temporary reduction in Consideration.
The Management Agreement approved by the Commission provided for a
six month term commencing December 18, 1992 and authorized the City
Manager to extend the term for an additional six month period.
Section 5 of the agreement entitled "Consideration" provided for a
minimum guarantee of $13,000 per month plus 105% of all gross
receipts in excess of $50, 000 as may be accrued monthly on a non -
aggregate basis. In addition, the City is to be paid 2 1/2% of all
gross receipts -accruing monthly on a non -aggregate basis from the
sale of boats.
Boat Yard Management Company, Inc. has struggled to meet the
financial obligations required under the present management
�v agreement. Revenues at the boatyard have decreased significantly
partially as a result of improvements at Dinner Key Marina being
incomplete. I
93- 678
9
The Honorable Mayor and Members
of the City Commission
Page 2
In an effort to provide for the continued operational viability of
the boatyard, the City and Boat Yard Management Company, Inc. have
renegotiated the amount of Consideration for the period commencing
June 18, 1993, to be as follows: Boat Yard Management shall pay a
Minimum Guarantee of $7,000 per month plus 10% of Gross Receipts in
excess of $30,000. At the time construction of improvements at
Dinner Key Marina is substantially complete in order to permit
occupancy of at least 95% of these slips, the City Manager will be
authorized to renegotiate and enter into the necessary implementing
documents to provide for an increased Consideration to be applied
to all renewal options exercised by Boat Yard Management Company
thereafter.
It is further recommended that the term of the Management Agreement
be amended to provide for extensions on a month -to -month basis
rather than a one-time extension for six months. Extending the
term in this manner will permit continued operation of the boatyard
without encumbering the property for an extended length of time.
In order not to impede Boat Yard Management Company's ability to
operate the boatyard, this Management Agreement will still honor
all permits, licenses or agreements entered into by Boat Yard
Management for 90 days after the effective date of the termination
or expiration.
93- 678
i
i
OAf'7fI�KEM
DIYp+p``Y& ky
Coconut Grovalt workln3 taant/tirr.', of 7.e140 S.
(''llrisruna Cul,rti;a
+aii;:c;ttll of, 'rtflr!it;;t`nW.+ t
P 0 Box, 33:30`!f)1`1'
Ray�horo Dr., M10ml, IrL 33133. (306) BSe1-122�
July ?, 1993Y
'i ; you know, our contr;s. ;t t+; ni;innvc I hQ :2c,.1(l S. Bayshore Ur property expired (in hinny
1"1. 1093. Tho l :lllow"fli, is oul 111c pO."r11 to continues to manage the property.
C)ilt• rev(C Ilk s halve dl op+:,(:d 1)y $ I (5.000, of 40`O' (froru $40,000 in Janiiaty to $24,000 in
May). 'l"here are. three; � vv ~nc:tors ieadinsn. to this decline: (a) Tnost hurricane-da niage d
t,o atS ir•1 the f..oe:onilt Gl Wlt. ar :a have heeri repaired- (b) Dinner .Key Marina his not re
,:q:u:.11(ld yctt arld there are hoats st':u•ed nl• worked on in the area: (c:) there aic! no
+,;1';= oil our (.(riperty, : )d 0 hil-.r Only dry-dock space to otler.
Our Minimum t:iuranlcs.t! monthly i`.:t\(lw to the City of Miami will de:'CrCaSe to
�,7+)t)1.►/rrtc,nth., r1.l�Acti we! .t am I :, l t?t>:; tl clr;uls!tr Frctim the prrvitaus $13,0�Ohnunlh
fit iiddition to the titunrh►}• mirlimunl (, rn;n;t�,:r:., tic` will pay (Ile City ar Mi;larli 1.0% ol.ltlyj
(rr0ss ;1'.01:11lrnonth, t`ll-c.rli`,t� June. 18, 1993, a change from the plevcuus
t. i l'j;; !'1 V(:1C T, 50,0t)1,1.
will Continue Io I.r:l� 1 it my, h;;f,(nce due to (fit! City of Miami plus all
itltcir-M accrued from (sur f.,. •vioijs i:01"I i ")
Wh,'Il any of, flic. C?Cl;itllli, :.(trlUflllC ,' . it.1"hip;; ((;1), (h), oi- (4) ill,)'ovc) nfl.e, Inate(hiily, 1ve
will he 01-wet-, to a lelingi;!t.1lt')It of i . t-0:11 pa vi-notlIs.
Both Z. oatyud 1�'1ilililf!�'.II1PIli t)lllhr+�y. 1+i,: , and the City o1' Miami will continue to ahid,�
by all other terms in 0111' 0111(lilr10
C hri.q Pwkerr, (1bCretiv, I rl:;iStll+'j
i oltvlid M.cina vcu),.,n1 n ino r111a ( lirinc!r Kt ti r)rydoCh
93~ 678