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HomeMy WebLinkAboutR-84-0728J-84-561 • RESOLUTION NO. 84- 726 A RESOLUTION APPROVING THE CITY MANAGER'S RE COMMEND ATT014S TO ESTABLISH '.i HE HI-INTAL BATE. FOR THE MIAMI OUTBOARD CI-.UB AT WATSON ISLAND IN THE AMOUNT OF $1 3, 1 20 .00 PER YEAR PAYABLE MONTHLY FOR THE LEASE PERIOD WHICH BEGAN MARCH 1, 1982, TERMINATING FEBRUARY 28, 1985, AND TO WAIVE THE PERCENTAGE CHARGE. OF GROSS INCOME AND THE PER CAPITA TAX "TIMES THE NUMBER OF NON- RESIDENT MEMBERS OF SAID CLUB; AND, FURTHER, TO ESTABLISH THE RENTAL RATE FOR THE MIAMI_ YACHT CLUB AT WATSON ISLAND IN THE AMOUNT OF $16,326.29 PER YEAR PAYABLE MONTHLY FOR THE LEASE PERIOD WHICH BEGAN MARCH 1, 1982, TERMINATING FEBRUARY 28, 1985, AND TO WAIVE THE PERCENTAGE CHARGE OF GROSS INCOME AND THE PER CAPITA TAX TIMES THE NUMBER OF NON-RESIDENT MEMBERS OF SAID CLUB. WHEREAS, the Miami Outboard Club entered into a lease agreement with the City of Miami for a portion of Watson Island for the period from March 1, 1982 through February 28, 1985; and WHEREAS, the rental consideration is the greater of (1) the base rent of $13,120.00 annually for the Miami Outboard Club or, (2) the per capita tax times the number of non-resident members or, (3) ten percent of gross income; and WHEREAS, the Miami Outboard Club appeared before the City Commission April 1, 1982, and had asked to be allowed to pay the minimum rent as outlined and to waive the percentage and per capita tax consideration; and WHEREAS, the Miami Yacht Club entered into a lease agreement with the City of Miami for a portion of Watson Island for the period from March 1, 1982 through February 28, 1985; and WHEREAS, the rental consideration is the greater of (1) the base rent of $16,326.29 annually for the Miami Yacht Club or, (2) the per capita tax times the number of non-resident members or, (3) ten percent of gross income; and CITY C017MISSIOI� MEETII\IG OF RES01U1iu;,`€ Page 1 of 3 WHEREAS, both Clubs appeared before the City Commission April 1, 1982, and had asked to be allowed to pay the minimum rent as outl.n<.d end for a waiver of the percentage and per capita tax con5iderat.ion; and WHEREAS, the City Commission by Motion 82-324 adopted April 1, 1982, authorized the minimum rents until such time as the City would adopt; plans for Watson Island with some certainty, at which time the Clubs would be permitted to apply for leases compatible with said plans; and WHEREAS, all other requirements and regulations in the present leases are to remain in full force and effect; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: The following recommendations of the City Manager are hereby approved: (a) To establish a minimum rental rate for the Miami Outboard Club at Watson Island in the amount of $13,120.00 per year payable monthly for the lease period which began March 1, 1982, terminating February 28, 1985, and to waive the percentage charge of gross income and per capita tax times the number of non-resident members; (b) To establish a minimum rental rate for the Miami Yacht Club at Watson Island in the amount of $16,326.29 per year payable monthly for the lease period which began March 1, 1982, terminating February 28, 1985, and to waive the percentage charge of gross income and per capita tax times the number of non- resident members; (c) All other requirements and regulations in the present leases are to remain in full force and effect for the term of the leases. Page 2 of 3 84-'728 ; PASSED AND ADOPTED this 28th day of June - MAURICE A. FERRE MAYOR ATTEST: r ALPH iff. ONGIE, CITY CLER PREPARED AND APPROVED BY: , � e-4 �-- - &leoc ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: SE R. GARCIA-PEDROSA, CITY ATTORNEY 1984. Page 3 of 3 84--'728 30 CITY OF MIAMI. FLORIOA ' - INTER -OFFICE MEMORANDUM M Mr. Howard Gary City Manager DATE: May 11, 1984 Mr.. SUBJECT: Miami Outboard Club Miami Yacht Club Maurice A. Ferr6 / FROM: Mayor , REFERENCES: lti I' 1 '• ENCLOSURES: l Enclosed is a copy'of a letter from Attorney Richard G. Taylor to Marie Petit. It strikes me that what the Miami Outboard Club and the itiami Yacht Club are requesting is reasonable. This matter has been pending since February of 1982. It has passed the Water- front Board, the Leasing Department of the City of lkLiami, but somehow it has not come up for final resolution. Would you please schedule this matter for the May 24 meeting or, at the latest, in June. MAF.amn - *'(; -:4-54 r e a RICHARD G. TAYLOR ATTORNEY AT uw 18 April, 1984 �p Al ,AP Mrs. Marie Petit 3500 Pan American Drive Coconut Grove, Florida 33133 Dear Marie: 1s Wtl1T FLAOLCM STRtBT $urm 803 131SCA.YNV eU11.O1NG MIAM1. FLOR10A 33130 TZ"PNON[ 371-7601 I really do not wish to bedevil you, but can't get close enough to you to put the proverbial salt on your tail, so here goes -- We have been negotiating administratively continually for The Miami Outboard Club and The Miami Yacht Club relative to their recent audit and roughly doubling of their annual rent. S9e are presently paying: Miami Outboard Club, $13, 120.00/per year and The Miami Yacht Club, $16,326.29/per year. In the case of The Outboard Club the audit more than doubled same and The Yacht Club a little less than so. The equities have been expounded and re -expounded and, without naming anyone particularly, the Lease Department, The City Manager, etc., etc., have all expressed support, empathy and concern for the Clubs positions, particularly due to the fact of their multiple and, certainly, endless support of all comm- unity activities and, most assuredly, Black included. Obviously, no-one wishes to make a big thing of the matter if avoidable and, certainly, to make any political disruption. The majority of the Commission have individually assured us that they would support the Clubs position if it came to push and shove; hopefully, it need not do so. In February 1982 I wrote a Resolution and tendered same to Carlos Garcia, Director of Finance, stabilizing the rent as aforesaid, (same is predicated on the State Leasehold Dry and Water Land Tease states), as per copy attached. Everyone more or less assumed that this was reasonable and adopted as same was initially approved by The Waterfront Board and rec- ommended to the city for its Lease Approval Meeting of Febru- ary 11, 1982. Until the audit came alive on some basis, there was no deviation from the rent being thusly paid. Obviously, even a memo from The City Manager at this point could resolve -1- • • a Mrs. Marie Petit 18 April, 1984 Page -2- the entire matter and satisfy the rent requirements through March of 1985 which is all that is currently under considera- tion. reciate your giving me a little directional advice Would app do the hest I could to do the same as I would certainly under reverse circumstances. Sincerely, a RGT/tic Rncls: Resolution:copy of/ 84-728. Mrs. Marie Petit 18 April, 1984 Page -2- the entire matter and satisfy the rent requirements through March of 1985 which is all that is currently under considera- tion. appreciate your giving me a little directional advice as I would certainly could do the best I could to do the same under reverse circumstances. Sincerely, RGT/tic Encls: Resolution:copy of/ RESOLUTION WHEREAS, the Watson Island boat clubs, Miami Yacht Club and Miami Outboard C1Th were before The City of Miami City Commission on February 11, 1982, and, WHEREAS, said clubs made presentations in the A.M. session and said matter was postponed to the P.M. session; and, said clubs were not represented in the P.M. sessions, and; WHEREAS, the clubs proffered that neither t:.ei.r bookkeeping • nor club activities were presently compatible with a gross rent assess- ment, i.e., multiple, charitable bere`its, drives and club supported civic events, and WHEREAS, both clubs had proffered an acceptance of a "base rent" pursuant to negotiation with Citjr Representatives; and, WHEREAS, The 24iami Waterfront Board, after hearing had endorsed said "base rent" as well as the City of Miami. Leasing De- partment as follows: MIAMI YACHT CLUB - $16,326.29/year/ MIAMI OUTBOARD CLUB -- $13,120.00/year/ payable monthly beginning 3/1/82, (BOTH CLUBS) . AND, WHEREAS, the future development and utilization of Watson Island is presently not finalized; BE IT RESOLVED that the leases' as prezen ted to the above clubs snail be at the above specified rent until such time as The City shall adopt plans for Watson Island with some cortainty, at which time both clubs may apply for a lease for a period��oftire With s .; tner recuirements and regulations in the presente� eases to remain in full force and effect. ®4-726 .i CITY OF WAIAt, fLCWUA INTER -OFFICE W:M0RAN®U41 Randolph B. Rosencrantz CATL April 3, 1984 R,Lc. Assistant City Manager SUeJCCT Miami Outboard and Miami Yacht Clubs or r AGM -- J,�' R£rf.k£PICCS: Donal R. Stewart Property Manager lN�LJSUHf;S. Reference is made to an undated letter addressed to the Cit_✓ :Tana:;er's Office from Richard G. Taylor, attorney at Luw, conc�!rninb th(- anmc,_:nt of rental payments that the above nenti.otiod clubs ar,! presently pz:,ytnb t. the City of Miami for the use of City property on '.:atnon island. Backaround of Clubs Since the 1940's, these club.; pail 51.01) a ye.ir fir approximzt,21;• fL, (S) acres upland and submerged property each for over twenty (20) rears, and it was not until the early 1'�,�C'� th;lt a C-Oncurted effort was mat�+r by the City to bring these $1.00 a e it rases in line, to produ.:e r:)ru revenue for the City. Consequently, in 1982, atrecments wQre r�achu'_ with both clubs: the Miami Gutbo ird w n1 a p.�.✓ the r.,inimu;n of rt 3, 1"_'U.`lU, and the Miami Yacht Club would pay annually. A cl-iuse ais.-) included in the rent schedule stated that if 10 percent of the gross income exceeded the minimum rental, as ontlinud anove, the clubs woul pay the greater of the two. Subsequent to the leases being signor, Mr. 'ravlor appeared be:,)re t'uu City Commission on April 1, 1982, acid by `lotion Nc. 82-324, th,, Cit;: Commission moved that the minimum _mountS as outlined would �! the payment. However, the City Auditing; Department rofuses to accupt th,-- motion as being valid and, therefore, the boors -cro :audited. 1TI..y were charged the 10 percent of income, which .;.-is ;lre.gter t;.,in the minimum rent, hence Mr. �sylor's :tt�r. There may be merit in 'ir. "r,ivlor's Ztcnt :un that 11-0 perct-:- t v' ,r-), from a private, non-profit organization is unfair. A5 lie status, th,1.• could raise money for a charitable •iff•iir and yet be ::s,e5sed lu p Frcent of the amount of money raised that would normally ;,u t,; charity. ::owev-r, to amend the leases that have 11 mo:iths to run until 2j1a/?5. wi�:ch is the expiration date, would not be in the bust interest of thu City. 1 of 2 84- 72t, Randolph B. Rosencrantz April 3, 1984 Recommendation I would recommend denial of the Mr. Taylor's ry ;best to reduce the rental payments of the Miami Outbuard and the Marai Y•ich'_ Clubs. Attached you will find a number of letters supportiing, :.r. Taylor's statement of the clubs' involvement in civic and community activities. DR S : M4W : amu Encl: as stated of 2 V 4 -72 6 'Aft ikir a Q RESOLUTION WHEREAS, the Watson Island boat clubs, Miami Yacht Club and Miami Outboard Club were before The City of Miami City Commission on February 11, 1982, and, WHEREAS, said clubs made presentations in the A.M. session and said matter was postponed to the P.M. session; and, said clubs were not represented in the P.M. sessions, and; WHERr-rNS, the clubs proffered that neither their bookkeeping nor club activities were presently compatible with a gross rent assess- ment, i.e., multiple, charitable benefits, drives and club supported civic events, and WHEREAS, both clubs had proffered an acceptance of a "base rent" pursuant to negotiation with City Representatives; and, WHEREAS, The Miami Waterfront Board, after hearing had endorsed said "base rent" as well as the City of Miami Leasing De- partment as follows: MIAMI YACHT CLUB - $16,326.29/year/ MIAMI OUTBOARD CLUB - $13,120.00/year/ payable monthly beginning 3/1/32, (BOTH CLUBS) . AND, WHEREAS, the future development and utilization of Watson Island is presently not finalized; BE IT RESOLVED that the leases' as presented to the above clubs shall be at the above srecified rent until such time as The City shall adopt plans for :Watson Island with some certainty, at which time both clubs may apply for a lease for a period oftime under such terms as may be compatible with said Plans. All other requirements and regulations in the presented leases to remain in full.force and effect. 84-72ti, FACT SHEET MIAMI YAC•r. i CLUB Lease term: 3/1/82 - 2/23/85 Consideration: The greater of: 1. Base rent of 16,326.29 annually 2. Per capita tax times the number of non- resident 3. 10p of groso incorne Notes: I The Yacht Club was invoice! on January 26, 1934 per Audit 84-157 for the per i �) i 3/1 /.32 - 3/2-3/33 . Til_., a,3s 10% of gross income over the r: in iir:um rent . ( Auditors were unable to arrive at per tox tim.2s number of non- resident members, as this inf:r::,ation has not been f-irnished to the City.) To date this remains unpaid. II The Club shall, at the end of 'lcii :,ix -month period, provide a statement attesting to `..ale prier period membership composition as follows: 1. Resident 2. Non-resident 3. User 4. Non -user 5. Number of guests using th#! club 6. Number of new occupancies `y non-resident club members Letters were sent on 1/ 2, and 5/4/34 requesting compliance, with no response. III The Club is required to institute an affirrnativa acticn o:3n and agreed that the minority a-�:rioership of the club "VnSist of no less than 1010 of tt;e tit,11 me!nbership after the first year of the lease. The l It than st;alits :minority membership 5N per y ua:il such Li:;)-2 as thca total club membership reflects e minority N,-'rct.ntes representative of the City's p.:pulz,Lion. Letters were sent 3/24/33 and 11/1G/53 with no response. IV The Club is to submit the number of public service functions that are required to be held , ;minimum 3 for placks, 3 for Hispanics. Letters were sent 3/24/83 and 11/16/33 with no response. SY-726 L11 �j AM AM FACT SHE::T MIAMI OUTBOARD CLUB Lease term: 3/1/82 - 2/28/85 Consideration: The greater of: 1. Base rent of .513,120 annually 2. Per capita tax times the number of non - city resident members 3. 10% of gross income Notes: I The Outboard Club was invoiced on January 17, 1934, for additional rent due in the amount of $14,186.62 over the base rent, which is 10% of incrm`. This was per Audit 84- 189. (Auditors were unable to arrive at per capita tax times number of non-resident members, as this information has not been furnished to the City.) II The Club shall, at the end of each six-month period, provide a statement attesting to the prior period membership composition, as follows: 1. Resident 2. lion -resident 3. User u. Non -user 5. Number of guests using the club 6. Number of new occupancies by nor. -resident club members Letters were sent on 4/22/33, 1!23/34 and 4/25/84 requesting compliance, and a reply was tectz—iv,�d 5/12/8?. No other responses have been received III The Club is required to instil;:: -�n affirm,;tive action plan and agreed that the minority n,:.,nucrship of the cluo cc,, ist of no less than 10� of the tct:, m, tnbership after the First year of the lease. The ncreasQ its minority membership 510 per y�3,,;• lnz it -such ti:ne as the total club membership reflects ne minority percentages representative of the City's it 1 ui ;lion. Letters were sent 11/16/82,/?ti/;?, 4/22/33 and 6/2'r/33. One reply eras received 4/14/�?, but does not satisfy the requirements. IV The Club is to submit the numter cf public Zervice fu^ctions that are requiredto be held, a_n mu^, 3 for 31acies, 3 for Hispanics. Letters were sent 4/22/83 and !;/27/83 with no 84-`?`28 11 E oe,_41-0 6 Aft RiCHARO G. TAYLOR ATTORN[T AT LAW February 01984 to WCST rLAGLC" STRttT SUITe 803 SiscAymx SWILDINA MIAMI, FLanIDA 33130 Tti-c""Cr it 371•74901 l.�b.g time member of The Miami Outboard Club and participant of The Miami Yacht Club, 1 am tendering this letter as a solicita- tion for help in behalf of both Clubs. The present existing Lease of both Clubs, subsection five, provides for rental payment on one of three bases; A) Predicated upon the State of Florida's Leasehold or State-owned land to .3ari,nas, etc. B) A per capita property tax -complicated and lesser than "A". C) A 10% of grrr.s ire which can b interpreted in many ways. The Clubs have been paying on the basis of "A" as "B" is fundamen- tally irrelevant. Recently, both Clubs have been audited and the Auditors have taken a different position on the interpretation of 10% of gross, i.e., that 10% of gross is every nickel or dime that passes through the Clubs coffers. A simple illustration is that if either Club had a dinner and catered same for 300 people at $10.00/per head, the Club received $3,000.00 and, perhaps, paid the caterer $9.00/per head, i.e., $2,700.00; one construction is the Club received $300.00; another construction is the Club received $3,000.00. A different illustra- tion of penalizing charity is, i.e., The Miami Outboard Club had a Muscular Dystrophy week -end some 2 years ago, raising a little over $10,000.00; current audit construction would be that the Club is to be assessed a little over $1,000.00 for conducting said event. Multiple additional arguements can be made. The contributions of both Clubs to civic, multiple donations, integration, education, are almost.endless; both Clubs fully support auxillaries, public projects, needy groups, Overtown, Sponsorship or an overtown Boy Scout, Group, Projects, etc., etc., etc. i simply submit the avail- ability of both Clubs for public purposes. use , projects, charitable activities, education benefits and seminars are without contest. Accordingly, Z mould solicit the support of The City Cominis—sion in making the current 3-year Lease, i.e., till February 28, 1965, at "" �ii,pieici�ly st�eleast predicated m S�tion tLtkpred c��ar current State IL-ase-hold prig; it is cb eAnd that, `gin currently, CDvcr )r Graham has, (Fea. ry 15, 1984 at `i va State: of Florida C_7bi.ne, t higher H,a.ri na-7 e fees; these, of oDur e , are a_n] , I�X1:h; qv; ; , within the yEar, t1 t: Club leases should be saTehow ti.clfi a=rdincly to t`a St-t - Assessant CT, evi:i tlx:)ugh t2ie Clubs have ccnt .,­iu.l.ly built, and iuvxvved their Leasevold at t e= own cost, and to the bel ir cf t!.L-A.Ibli c and The City of Miami. � , _ ,� 84-728 CITY OF MIAM1. FLORIDA INTER -OFFICE MEMORANDUM TOz Honorable Mayor and Members of OATS: June 8, 1984 FILE.. the City Commission SUBJECT: Lease agreements Miami, Outboard Club FROM: Howard V. Gar Miami Yacht Club REFERENCES: q� . City Manager ENCLOSURES: A. Miami. Outboard Club B. Miami Yacht Club Attached are two modified audits for the Miami Outboard Club and ,\,\j' the Miami Yacht Club which implements the intent of the City Commission pursuant to Motion 82-324 which specifically states that these clubs would pay a minimum rent only of $13,120.OG-and $16,326.29, respectively. These modifications eleminate the concerns raised by these clubs. A proposed resolution is being prepared to formalize Motion 82-324 to amend the Miami Yacht Club and Miami Outboard Club agreements to reflect the intent of Motion 82-324 84-'728 N CITY OF MIAIMI. FLORIDA INTER -OFFICE MEMORANDUM M Honorable Mayor and Members of DATZ June 8, 1984 ME - the City Commission SUSJCCT: Lease Agreements Miami Outboard Club f Miami Yacht Club FROM: / REFERENCES: Howard V. Gary City Manager ENCLOSURES: A Miami. Outboard Club B. Miami, Yacht Club Attached are two modified audits for the Miami Outboard Club and the Miami. Yacht Club which implements the intent of the City Commission pursuant to Motion 82-324 which specifically states that these clubs would pay a minimum rent only of $13,120.00 and $16,326.29, respectively. These modifications eleminate the concerns raised by these clubs. A proposed resolution is being prepared to formalize Motion 62-324 to amend the Miami Yacht Club and Miami Outboard Club agreements to reflect the intent of Motion 82-324 �3 3 L�', 84-728 TO, Howard V. Gary City Manager FRone: Su j an S. Chhabra Ci ty Internal Aut CITY OF MIAMi. FLORIOA INTER -OFFICE MEMORANDUM DATE: June 7, 1984 mr:84-189-A SUBJECT: Summary of Significant Findings and Recommendations for the Amended Audit Report of the Miami Outboard Club, REFca.NOE.inc. , Operation - Year Endi ng February 28, 1983 ENCLOSURES: The audit disclosed that the City rental revenue from the Miami Outboard Club, Inc., operation, for the year ending February 28, 1983, amounted to $13,120.00, and was paid to the City on a timely basis. The Club has not submitted the required membership composition to the City for the six months period ended August 31, 1983. ® The City Clerk's files do not include a current executed copy of the lease agreement between the City of Miami and the Miami Outboard Club. The appropriate recommendations were made to the Finance Department and City Manager's Office. At the April 1, 1982 meeting, the City Commission passed a Motion (#82-324) directing the City Manager to enter into a Lease Agreement with the Miami Outboard Club whereby the City was to receive only an annual rental of $13,120.00, until such time as the City shall adopt plans for Watson Island with some certainty, at which time the Club may apply for a lease compatible with said plans. Due to the Motion (#82-324), we anticipate the City Manager will authorize the amending of the existing lease agreement in order to only charge the annual rental of $13,120.00 to the Club from March 1, 1982 ; therefore, we have amended this report to verify that the Club has paid in full the required annual payment for the lease year ending February 28, 1983. No other requirements of the lease agreement would be affected by the amendment. The City Manager should execute the required documents to amend the lease agreement, as soon as possible, to properly authorize the amount of rental due each year. Ref:28/5/01 84-'1 28 { ,...rAWN AMENDED AUDIT REPORT THE MIAMI OUTBOARD CLUB, INC. PREPARED BY; OFFICE OF INTERNAL AUDITS 11 2 I- - TCc Howard V. Gary City Manager F"a+ Sujan S. Chhabra City Internal Audi CITY OF MIAMI. FLORIDA OFFICE OF INTERNAL. AUDITS AUDIT RETORT June 7, 1984 nLr-:84-189-A Amended Report on Miami Outboard Club, Inc., Operation } March 1, 1982 through February 28, 1983 ,SURES: I. DESCRIPTION A. We have audited the Miami Outboard Club, Inc., operation for the period March 1, 1962 through February 28, 1983, to determine the rental and State Use Tax due the City of Miami, and compliance with the lease agreement. B. The lease agreement dated March 30, 1982, between the City of Miami and the Miami Outboard Club, Inc., was authorized by the adoption of Resolution 82-94, dated February 11, 1982, for a period of three years, beginning March 1, 1982 and terminating on February 28, 1985. C. At the April 1, 1982 meeting, the City Commission passed a Motion (#82-324) directing the City Manager to enter into a Lease Agreement with the Miami Outboard Club whereby the City was to receive only an annual rental of $13,120.00, until such time as the City shall adopt plans for Watson Island with some certainty, at which time the Club may apply for a lease compatible with said plans. No other requirements of the lease agreement would be affected by the change. As a result of the Motion (#82-324), we anticipate the City Manager will authorize the amending of the existing lease agreement to only charge a fixed annual rental of $13,120.00 effective March 1, 1982. 0. The requirements of the lease agreement pertinent to this audit are listed below: 1. The operation of the Club is primarily designed to serve the members of the Club, the boating public, and visiting tourists, and for no other purpose. Food and beverage 'shall be permitted only for Club members and guests, but not for the public. 2. The annual rental payable to the City shall be $13,120.00 of which one twelfth shall be paid each month on or before the twentieth day of the month. 3. a. In addition to the aforementioned rent amount, should a vacancy occur on any space where a boat is kept and the vacancy is not filled by a boat owned by a City of Miami 84-728 Howard V. Gary Miami Outboard City Manager 84-189-A Page 2 of 4 resident, the Club will pay to the City a surcharge of 20% of the per capita property tax, for every person in the Club who is a user of the Club facility. However, the Club shall be relieved of payment of the surcharge during the three years of this agreement 4-�en the number of the City of Miami resident users of the Club facility excerz; the following: 14% the first year ending October 1, 1982 16% the second year ending October 1, 1983 18% the third year ending October 1, 1984 b. Any surcharge amounts received by the City shall be placed in a separate Marina Enterprise Fund dedicated for the development and improvement of the Ci ty's Marinas. 4. The Club shai 1 , at the end of each six months peri od, provide a statement attesting to the prior period membership composition, whether resident, non-resident, user, non -user, the number of new occupancies by non --resident Club members for the prior six months period, the occupancy rate, and the rate charged. 5. The Club shall obtain all licenses, permits, and fees necessary for the Club to conduct business on the leased premises. 6. The Club shall pay all charges for utilities used on the premises during the term of this lease. 70 The Club shall maintain the following insurance coverage: a. Public liability insurance including products liability, in the amounts of not less than $1,000,000.00 per occurrence for death or bodily injury and not less than $50,000.00 per occurrence for property damage. b. Standard fire insurance policy on its premises and all furniture, fixtures, equipment, etc., including perils of fire, extended coverage, and other perils for the actual cash value thereof. c. Automobile liability insurance covering all owned, non -owned, and hired vehicles, in amounts of not less than $100, 000.00 per accident and $300, 000.00 per occurrence of bodily injury and $10,000.00 property damage. d. The City shall be named as an additional insured on the aforementioned policies. II. PRIOR YEAR'S AUDIT FINDINGS AND RECOMMENDATIONS NOT ACTED UPON A. None. 84-726 Howard V. Gary Miami Yacht Club City Manager 84-157-A Page 3 of 4 II. PRIOR YEAR'S AUDIT FINDINGS AND RECOMMENDATIONS NOT ACTED UPON A. None. III. CURRENT YEAR'S AUDIT FINDINGS AND RECOMMENDATIONS A. FINDING #1 - The Club has paid in full the required annual rental of $16,326.29 for the lease year ending February 28, 1983, on a timely basis. However, the lease agreement has not been amended. RECOMMENDATION - The City Manager should execute the required documents to amend the lease agreement, as soon as possible, to properly authorize the amount of rental due. B. FINDING #2 1. The Casualty Indemnity Exchange provides liability coverage of $1,000,000.00 for bodily injury and property damage combined for each occurrence, however, the agreement requires coverage of $1,000,000.00 for bodily injury each occurrence and $50,000.00 for property damage each occurrence. The policy expires on March 27, 1984, and the City of Miami is named as an additional insured. 2. We could not find proof in the City's files that the Miami Yacht Club carries the required standard fire insurance coverage or the automobile liability coverage. RECOMMENDATION - The Finance Department should request the Miami Yacht. Club to submit proof of the following required coverages: 1. Liability coverage of $1,000,000.00 for bodily injury per occurrence and $50,000.00 property damage per occurrence. 2. Standard fire insurance policy on its premises, furniture, fixtures, equipment, etc., including perils of fire, extended coverages and other perils for the actual cash value thereof. 3. Automobile liability insurance covering all owned and hired vehicles in amounts of not less than $100, 000.00 per accident, $300,000.00 bodily injury per occurrence and $10,000.00 property damage. 4. The City of Miami will be named as an additional insured on the policies. C. FINDING #3 - We could not find an executed copy of the March 30, 1982 lease agreement between the City of Miami and the Miami Yacht Club, Inc., in the City Clerk's files on this date, November 25, 1983. RECOMMENDATION - In order to maintain current files in the City Clerk's office, the City Manager's Office should initiate a procedure 84-'728 C E Howard V. Gary City Manager Page 4 of 4 Miami Yacht Club 84-157-A that would assure the City Clerk's Office of receiving an executed copy of every agreement entered into by the City of Miami. D. FINDING #4 - The Club has on display the required current State Alcoholic Beverage license, Public Health Certificate, and Dade County Occupational license for the restaurant operation. The City of Miami Occupational license is not required because the Club is a non-profit and non-public organization. E. FINDING m5 - The Club has made the required monthly payments to the City of Miami on a timely basis. HW/so cc: Randolph Rosencrantz Carlos Garcia Al Armada Auditor File Reader Ref:28/5/L i � i TO. Howard V. Gary City Manager FP.OM: Suj an S. Chhabra City Internal Au Ito CITY OF MIAMI. FLORIDA N'=ER-OFFICE MEMORANDUM DATE: June 7, 1984 F►LE:84-157-A SUBJECT: Summary of Significant Findings and Recommendations for the Amendc�i Audit Report of the Miami Yacht Club, Inc., REFERENCESQperati on - Year Ending February 28, 1983 ENCLosunm The audit disclosed that the City rental revenue from the Miami Yacht Club, Inc., operation for the year ending February 28, 1983, amounted to $16,326.29, and was paid to the City on a timely basis. The Club has not submitted the required membership composition to the City at the end of each six-month period. We could not find proof of the required public 1 i abi 1 i t,;i insurance coverage, standard fire insurance, or automobile liability insurance, in the City's files. The appropriate recommendations have been made to the Finance Department to request proof of the required insurance coverages and membership composition. At the April 1, 1982 meeting, the City Commission passed a Motion (n82-324) directing the City Manager to enter into a Lease Agreement with the Miami Yacht Club whereby the City was to receive only an annual rental of $16,326.29, until such time as the City shall adopt plans for Watson Island with some certainty, at which time the Club may apply for a lease compatible with said plans. Due to the Motion (182-324),' we anticipate the City Manager will authorize the amending of the existing lease agreement in order to only charge the annual rental of $16,326.29 to the Club from March 1, 1982; therefore, we have amended this report to verify that the Club has paid in full the required annual payment for the lease year ending February 28, 1983. No other requirements of the lease agreement would be affected by the amendment. The City Manager should execute the required documents to amend the lease agreement, as soon as possible, to properly authorize the amount of rental due each year. Ref:28/5/0 84-'728 11 2 TO. Howard V. Gary City Manager FRow Sujan S. Chhabra City Internal Au ito CITY OF' MIAMI. FLORIDA FFICE MEMORANDUM CAT& June 7, 1984 M,E, 84 -15 7 -A $U8JECT: Summary of Signif leant Findings and Recommendations for the lamendeJ Audit Report of the Miami Yacht Club, Inc., REFERENCESD perati on - Year Ending February 48, 1983 ENCLOSURES: The audit disclosed that the City rental revenue from the Miami Yacht Club, Inc., operation for the year ending February 28, 1983, amounted to $16,326.29, and was paid to the City on a timely basis. The Club has not submitted the required membership composition to the City at the end of each six-month period. We could not find proof of the required public liability insurance coverage, standard fire insurance, or automobile liability insurance, in the City's files. The appropriate recommendations have been made to the Finance Department to request proof of the required insurance coverages and membership composition. At the April 1, 1982'meeting, the City Commission passed a Motion (;82-324) directing the City Manager to enter into a Lease Agreement with the Miami Yacht Club whereby the City was to receive only an annual rental of $16,326.29, until _ such time as the City shall adopt plans for Watson Island with some certainty, at which time the Club may apply for a lease compatible with said plans. Due to the Motion (9182-324),' we anticipate the City Manager will authorize the amending of the existing lease agreement in order to only charge the annual rental of $16,326.29 to the Club from March 1, 1982; therefore, we have amended this report to verify that the Club has paid in full the required annual payment for the lease year ending February 28, 1983. No other requirements of the lease agreement would be affected by the amendment. The City Manager should execute the required documents to amend the lease agreement, as soon as possible, to properly authorize the amount of rental due each year. Ref:28/5/0 84-'728 AMENDED AUDIT REPORT THE MIAMI YACHT CLUB, INC. FOR THE PERIOD MARCH 1, 1982 THROUGH FEBRUARY 28, 1983 PREPARED BY: OFFICE OF INTERNAL AUDITS 84-72S Howard Y. Gary City Manager Miami Yacht Club 84-157-A Page 2 of 4 resident, the Club will pay to the City a surcharge of 20% of the per capita property tax, for every person in the Club who is a user of the C1 ub' s facility. however , th- Club shall be relieved of payment of the surcharge during the three years of this agreement when -the number of City of Miami resident users of the Club facility exceed the following: 10% the first year ending October 1, 1982 12% the second year, ending October 1, 1983 14% the third year, ending October 1, 1984 (Note: It seems for this purpose, fiscal year ending dates are different than the agreement year ending dates) b. Any surcharge amounts received by the City shall be placed in a separate Marina Enterprise Fund dedicated for the development and improvement of the City's Marinas. 4. The Club shall, at the end of each six-month period, provide a statement attesting to the prior period membership composition; whether resident, non-resident, user, non -user, the number of new occupancies by non-resident Club members for the prior six-month period, the occupancy rate, and the rates charged. 5. The Club shall obtain all licenses, permits, and fees necessary for the Club to conduct business on the leased premises. 6. The Club shall pay all charges for utilities used on the premises during the term of this lease. 7. The Club shall maintain the following insurance coverage: a. Public liability insurance including products liability, in the amounts of not less than $1,000,000.00 per occurrence for death or bodily injury and not less than $50,000.00 per occurrence for property damage. b. Standard fire insurance policy on its premises and all furniture, fixtures, equipment, etc., including perils of fire, extended coverage, and other perils for the actual cash value thereof. c. Automobile 1 iabil ity insurance covering all owned, non -owned, and hired vehicles, in amounts of not less than $100,000.00 per accident and $300,000.00 per occurrence of bodily injury and $10,000.00 property damage. d. The City shall be named as an additional insured on -the aforementioned pol icier. 84`" i 28 0 L Howard V. Gary City Manager Page 3 of 4 III. CURRENT YEAR'S -AUDIT FINDINGS AND RECOMMENDATIONS Miami Outboard 84-189-A A. FINDING #1 - The Club has paid in full the required annual rental of $13,120.00 on a timely basis. However, the lease agreement has not been amended. RECOMMENDATION - The City Manager should execute the required documents to amend the lease agreement, as soon as possible, to properly authorize the amount of rental due. B. FINDING 7#2 - The required list of Club members for the six months period ending August 30, 1983, categorizing the members as resident, non-resident, users, or non -users, and the number of new occupancies by non-resident members, was not submitted to the City as of this date December 19, 1983. RECOMMENDATION - The Finance Department should remind the Miami Outboard Club, Inc., that the agreement requires a statement to be submitted to the City, attesting to the membership composition at the end of each six month period, with the following classifications of the members listed that may apply: (a) City resident or non-resident (b) User or non -user �c City property owner d City register voter (e) New occupancy by non-resident members In addition, the occupancy rate of resident users and non-resident users and the rates charged should be included in the statement. C. FINDING #3 1. The Kent Insurance Company on Policy #KGC-5-9-99019, provides liability coverage of $1,000,000.00 for bodily injury and property damage under a comprehensive form; however, the agreement requires coverage of $1,000,000.00 per occurrence for bodily injury and $50,000.00 per occurrence for property damage. This policy which expires on June 29, 1984 also includes automobile liability in the required amount of coverage and the City of Miami is named as an additional insured. 2. The Casualty Indemnity Exchange Insurance Company on Policy #F-014779, with an expiration date of June 29, 1984, provides the required standard fire insurance coverage, however, the City of Miami is not named as an additional insured. RECOMMENDATION - The Finance Department should request the lessee to send proofofo 'the following requirements: s4_726 At-\, APNI Howard V. Gary City Manager Page 4 of 4 Miami Outboard 84-189-A 1. $1,000,000.00 liability coverage for bodily injury per occurrence and $50,000.00 per occurrence for property damage on Policy #KGC-5-9-99019 from the Kent Insurance Company. 2. The City of Miami named as an additional insured on Policy #F-014779 from the Casualty Indemnity Exchange Insurance Company. D. FINDING #4 - We could not find an executed copy of the March 30, 1982 lease agreement between the City of Miami and the Miami Outboard Club, Inc., in the City Cl �rk's fi 1 es on this date, November 25, 1983. RECOMMENDATION -- In order to maintain current files in the City Clerk's Office, the City Manager's Office should initiate a procedure that would assure the City Clerk's Office of receiving an executed copy of every agreement entered into by the City. E. FINDING #5 - The Club has the required current State Alcoholic Beverage License and Public Health Certificate for their bar and restaurant operation. However, a Dade County Occupational license was not made evident during the audit for this current year 1983. RECOMMENDATION - The Finance Department should request the lessee to submit proof of a current Dade County Occupational License to the City. F. FINDING #6 - The Club has made the required monthly payments to the City of Miami on a timely basis. HW/so cc: Randolph Rosencrantz Carlos Garcia Al Armada Auditor File Reader Ref:28/5/M 84-72f.