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HomeMy WebLinkAboutR-80-0062RFC/rr 1/24/80 BE RESOLUTION NO. 56-62. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED AGREEMENT BETWEEN BISCAYNE RECREATION DEVELOPMENT COMPANY AND THE CITY . OF MIAMI FOR THE MANAGEMENT OF THE DIPNER KEY MARINA COMPLEX, SUBJECT TO THE TERMS AND CONDITIONS SET FORTH THEREIN, UPON THE FURTHER CONDITION THAT THE AFORESAID AGREEMENT SHALL ONLY BECOME EFFECTIVE UPON THE PROPOSED ATTACHED ORDINANCE BECOMING EFFECTIVE. IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1 The City.Manager is hereby authorized t execute the attached.aareemenb between Biscayne Recreation Development`Company and the City of Miami for the management of the Dinner Key Marina Complex, subject to the terms,enc. conditions set forth therein, upon the' further condition that' the aforesaidagreement shall only become effective upon the;; proposed attached ordinance becoming effective. JANUARY °► 19 8 0 . PASSED.: AND ADOPTED this 24 day _TEST. RALPH G. ONGIE CITY CLERK PREPARED AND "APPROVED BY: ROBERT=F.. CLARK ASSISTANT CITY 'ATTORNEY APP GEAR! CIT �' MAURICE A. FERRE MAYOR' S< TO FORM AND ,:CORRECTNESS:. i F.. .35,OX , JR. TTO NEY CU OLLo W„ CITY COMMISSION MEETING OG JAN?119MO MANAGEMENT AGREEMENT THIS AGREEMENT. made and entered into this ay o January 1979, by and between the City of Miami, a Municipal Corporation of the State of Florida, hereinafter referred to, as "The City and Biscayne Recreation Development Company, a Florida Corporation, hereinafter referred to as "The Company", W I T N E S S E TH : WHEREAS, The City currently owns and operates the property and facility commonly known as the Dinner Key Marina; and The City. Commission desires initiative and enterprise reconstruct and WHEREAS, o have private redevelop the Dinner Key Marina site into a firstclass operating marina; and WHEREAS, The City has advertised for Public Proposals for the lease and operation of the Dinner Key Marina; and several other proposers made public proposals in accordance with the "bidding" documents; and WHEREAS, The Company offered to renovate and design marina facility with private capital; and new. WHEREAS, The Company along with WHEREAS, The City a now desires to finance the reconstruc- tion and development of the marina with monies from revenue bonds in order to keep the interest cost of repayment to minimumin consideration of lower dockage`. rates for and in order not to encumber said premises possession contract, long and:: a tenants with a long term WHEREAS, The City has rejected all proposals for a lease and; operation of Dinner Key Marina; and WHEREAS, WHEREAS, The City'COmmission directed the Manager to negotiate a short-term management contract with Biscayne Recreation Development Company; and 'SUPPORTIVE DOCUMENTS FOLLOW" ► g0-62 , • ' • WHEREAS, The Company is both desirous and capable of construction management, and management & operation of the facilities at said marina; and WHEREAS, The City and The Company have negotiated this Agreement; NOW THEREFORE, for and in consideration of the premises and the nautual covenants hereinafter contained to be observed and performed, the parties hereto agree as fo3.1,3107s: 1. DESCRIPTION OF PREMISES The parties hereby agree that an accurate description Facility", opropermietysi3Oe: "Premises", is edto a etorifen.fe'srnrown on exhibit ilTbiet 1:A" attached hereto and made a of the managed Pre h' 2. TERM for a period dofsic T .s Agreement . e fo the Basic this timon Term reemen r perm t shall,itting: day 0 be . end construc- tion.r a. of he ce T c 3. and s Term . t en option Te ding omm The iu i c ten This including shall llw ersrighteri:dition.dad 10) Re d co provided b. Preferential shall have the ( Agreement 7 t to an .d p The Company Agreement upon ntial a preferential same t year P 3. wa. . t to renew this at the end of the initial term fc:n: (5) h intervals. The fol 0 ' n its operation a as shall rats The Company month upon the condition The City year at six (6) of the docks and times per least two (2)1 be based of the grounds shall and the maintenancepiles and cleanliness and facilities. The Company shall be entitled to its preferen- tial right and option to renew if its ratings have been generally satisfactory for the initial term of this Agreement. The Company shall give The City notice of its intent to exercise this right at least sixty (60) days prior to the expiration of the Agreement. "S UPPO R.1:1 11,1 F -2- DOCUMENTS FOLLOW" - - 1 1 theFacility during the term of this small boat consideration provided in paragraph shall operate the property for asma 3 USE . The Company, as the management agent for The City, shall be the exclusive agent of The City and shall operate Agreement. For the four herein, The Company recreational facility, offering port, marina and; dockage and.other marina related:serviges, for the :use .of and by the general public o the following.- shall include but not be limited • Dockage and mooring of boats. Service s or Cooperation with Consulting Engineers The Company` shall other consultants, cooperateh° .witsuch consulting engineers, as may be designated by `engineers, under the Bond Ordinance, in`making'anannual inspection o.f the marina facilities and reporting their findings as to whether such facilities have 'been maintained in goodrepair, working order and condition, and their recommendations as to (i)changes, if any in the operation, repair and maintenance.: ensuing fiscal year and an` and (ii) the, amount that of the facilities during the estimate of the cost therefor, should be deposited during the ensuing fiscal year to•.the credit of the Renewal and Replacement Fund, and (iii) any revisions of, rates, rents, fees and charges. A "boat rampfacility, which shall be open to the public and for which no charge shall -.be: -made. • Showerand restroom facilities for use by those persons docking and; mooring, boats.. • Closed,` circuit T.V. security system for the docks. .' Security system for • Sailboat, charter Coin operated laundry. facilities. ▪ Maintenance of landscaping, perimeter walkway and lighting. "SUPPORTWE Ir.QLLGW f1 moorings. boat and commercial boat rentals. Sale of bait, tackle and ice. Sale of marine ; hardware. The City retains for itself the right:to control sailboat conces- sions at the present location at Dinner Key or at such future location as provided within the redevelopment plan for Dinner Key Marina. -3- k. Sale of take-out food and beverages including beer. :1. Sale of fuel. m ▪ Launch- services for moored boats. ▪ Boat sales and boat brokerage, provided, however, that a maximum of five percent (5%) of thetotal number of slips shall be used for such purposes. • All other related services in accordance with City of Miami Zoning Ordinance and subject to the approval of;the City Manager, whichshall not be unreasonably, withheld. The Company further agrees that during each year of the terms of. this Agreement and any extensions thereof, Pier 5, or any equivalent pier, shall be made available to such party as The City, may designate as its contractor for purposes of con - ducting two annual Boat Shows. to such designated contractor the total normal daily rental rate then in effect the slips on said pier multiplied by the number of actual use. 4. CONSIDERATION The fees >charged ?by The Company shall be an amount no greater than for each o days of. Notwithstanding any other provisions of this Manage- ment Agreement, The City and The Company covenant and agree that the obligations, duties and responsibilities of each of the par- ties imposed under this Management Agreement shall be subject to the applicable provisions of the ordinance ("Bond Ordinance"), authorizing the issuance of the revenue bonds for the Marina Facilities. B. Basic Consideration As consideration for the efficient management, and maintenance of the property throughout the period of Agreement, the parties covenant as follows: Upon execution of this Management Agreement, The City shall. pay from the gross receipts, as herein defined, its monthly oper- ating expenses; next, The City shall pay The Company one cent (10) per foot, per day, for;dock space leased; next,:,: "SUPc i 7T! VE -4- DEN ! 1J FOLLOW" 80-62 uJ (") Cr: LLA a_ 0 r.) 0 L .L. 00 0 1111 any excess revenues shall be deposited in a construction reserve account which shall be used to reduce the amount of any. 1 bonds required for reconstruction.and expansion'` Of the marina facility. In the event, notwithstanding due: and .diligent ;;,,effort by the parties, that the Project as contemplated cannot be permitted, or a sufficient amount of The City's revenue bonds cannot be sold within two years of the date of this. Agreement at a reasonable interest cost, not exceeding the. then prevailing revenue bond rate, then any remaining revenue, after expenses and management percent to a fees, shall go fifty. (50%). construction reserve fund for major repairs and renovation and fifty (50%) percent to The City. The City shall not be obligated or liable. to The Company for any such failure' or inability to obtain construction permitsor to sell such revenue bonds. Consideration After Permitting or Receipt of Bond Proceeds Upon receipt o tion.andexpansion of the marina facility _ bond proceeds issued for reconstruction all permits necessary for reconstruc or upon receipt expansion;, whichever comes first, The City shall receipts the monthly operating requisitions from The Company. balance of the money in the Revenue Fund to the credit of the various funds and accounts established under the Bond Ordinance. Said funds and accounts shall provide to The City a sum equal to one hundred fifty (.150%)percent of the Bond.Service requirement for the Marina Facility except for concession improvements. The City shall pay to The Company on a monthly basis from money in the surplus fund a fee of one cent (10) per foot, per day, for dock space leased and ten percent (10%) of gross revenues produced by moorings; and at time as the finger pier dockage rate exceeds twelve cents (120) per foot, per day, The City shall pay to The Company an.. additional one -tenth of one cent (1/10th of 10) per foot, per day, for each one cent (10) that the finger pier dockage rate exceeds twelve cents (120) per foot, per day. All andn 0 first pay from gross exPenses based upon monthly The City shall deposit the -5- 80-62 ii�':t'L'Sdi6c.�" •`: '..,.:_: w;._: ^r.'1�.4 A4'"_Z1:a�f9E'sL`3�u�"uJ;. 1 remaining money from gross receipts shall within sixty (60) days of the end of each fiscal year be divided equally between The Company and The City. D. Definition of Completion Completion of the facility shall be defined as acceptance by the City through issuance of a certificate of occupancy. E. Handling. of Revenues The Company agrees that all revenues and other income o the marina facilities, fees and charges including collections of rates, rents and all other income derived or in connection, with the operation, repair, maintenance' and management of the Marina Facilities, excluding, however, income from'concessions which The .Company.may operate as hereafter set forth in Subsection. will be collected and deposited daily, faras practicable, in. -the, name of The City, to,the` credit of the Revenue Fund established under the`Bond Ordinance. F. Bond Service on Concession Improvements The Company shall also pay.. to The City its monthly bond as service requirementon any concession improvements for which bond funds maybe required or shall pay to The City one half service additional sum on an requirement for said or arising from In addition, The Company the monthly bond concession improvements, plus an annual basis equal to 1/35th (one thirty- fifth) of the cost of construction of such space provided for said concession improvements for depreciation, replacement and repair. Payment of the aforesaid sums shall begin after the completion of said construction. Finally, The Company shall. pay to The City one cent ($.01) per gallon of fuel sold at the marina.`. The Company shall be entitled to operate any concessions or. to enter into percentage agreements with concessionaires to provide the services set forth hereafter. The Company will pay the City the followingconsiderations arising out of the operation '.-13ISLAigaliailli4' of the concessions listed below, namely: ten percent (10%) of The Company's gross revenues earned from concessions contracted to third party concessionaires; or ten percent (3.0%) of The Company'scompenys ngerotspsrorefviet.nrubeustensorntedlesfreom aenllfivepercent (5%) of The services concessions referred oprate operated by The Company at Dinner Key Marina. The herein are: (1) Security systems for moorings (2) Coi.ri-operated laundry facilities (3) Sail of bait, tackle and ice (4) Sale of marine hardware (5) Sale for consumr)tiorl, off the premises, of food and beverages, including beer, but not other alcoholic beverages • (6) Sale of fuel; however, The Company shall pay The City one cent for each gallon of fuel pumped (7) Boat maintenance and repair \\IE the above for these services. H. Definitions (8) Boat brokerage services providing that any boat for sale shall pay the full price for moorings and for wet slip storage. Brokerage slips shall be limited to five percent (5%) of the total new lineal footage available for lease after construc- tion exceeds the lineal footage currently available (9) Other services sub3.ect to the City Manager's approval In the event The Company chooses not to provide any of services, The City may negotiate a direct concession Operating expenses shall be defined as salaries paid to the dockmaster, assistant dockmaster, dock workers, bookkeeper, receptionist, secretaries, typists and other employees providing direct services to tenants; social security and • • , other employee benefits; legal expenses; auditing; office expenses; miscellaneous supplies and equipment; utilities and waste removal; insurance; ordinary maintenance and -7- 8 0 - 6 2 repair; and advertising and promotion. (Further, annual operating expenses shall include a depreciation reserve and replacement amount equal to one -thirty-fifth (1/35th) of the total amount of the bond issue used, excluding concession space. Such funds shall be deposited, on a monthly basis, with The City and shall be available' for extraordinary repairs and replacement expenses that will extend the life of the facility. Ordinary repairs necessary for Proper maintenance and operation of the facility shall be the responsibility of The Company through its annual operating budget.) The term "gross sales" as used herein shall be considered synonymous and interchangeable with the term "gross receipts" and shall include all income collected by The Company from the operation and rnanageinent of the facility. Bond service requirement as used in this Agreement shall eathe amount. in any fiscal year which would be necessary InfornThe City to Pay the sum of the amount to be deposited in UJ cf) the interest account and the amount to be deposited in the principal account on its revenue bonds if all bonds were LU 0 amoritzed in equal installments over a period of not less ° --I than twenty-five (25) years. Monthly bond service requirement CL. .7,71 C-) is one -twelfth (1/12t)' of the bond service requirement. =rn # 0 5. MANAGEMENT SERVICES a. The Company shall deliver on or before the fifteenth (15th) day of each month, beginning with the second month of this Agreement and continuing eachandevery m° nth thereafter during the effective period hereof, atthe office of the Department of Finance of The by, City, or at such other place as may be designated hereafterThe City the aforementioned monthly payments. Along with said IP 8 0 - 6 2 - payment, The Company shall provide an operating statement in certificate form signed by a duly authorized officer ofTI Company setting forth in such detail as the Director of Finance of The City may prescribe, the amounts of gross sales. Charges and Handling of Money The Company shall offer, make and keep the Marina Facilities available for.use by the charge and collect the rates, rents, services rendered by or for the use of conformity with the schedulethereof by The City. general Public and shall fees and charges for the such facilities in as prescribed or authorized The Company shall supervise and control the hand- ling of all money received in the operation of the Marina Facilities and shall controls, establish an adequate system of internal satisfactory to the City Manager, covering the receipt iture of move and the maintenance and operation of and expend y marina facilities and shall prepare all appropriate operating reports and statements necessary Management Agreement. Certain Rights, Duties and Responsibilities.of The: jand financial under C.? , Lk:r ! operate, this c. Company The Company and ` The City or appropriate agree that The Company shall maintain, repair and manage the marina facilities for The City as an independent contractor in Management Agreement and subject to such and schedules of rates, rents, fees and revisions thereof, from time to time; `in or authorized by The City. repair and accordance with this rules and regulations charges, including any effect, as prescribed • The Company shall operate, maintain, manage the marina` facilities, and shall maintain such facilities in a neat and orderly fashion consistent with such high standards and shall render first class, high quality, courteous service to the genera]. public. The company is empowered to manage the marina facilities and exercise such management power as it deems reasonably necessary for the 80-62 orderly, safe, sanitary and secure use of such facilities in accordance with applicable laws, regulations, ordinances and rules of the City. d. Current Expenses The current expenses incurred in the. operation, repair,maintenance and management of the marinafacilities theties shall be Paid out of the Revenue Fund in conformity it budget in effect at the time and the Bond Ordinance. e. Renewal and Replacement Fund Expenditures Expenditures of money in the Renewal and. Replace- ment Fund shall be made by The Company in conformity with the Bond Ordinance Renewal andCurrent Replacement expenses an dthe therefor; badunddehg expendituresnotexceed x op f.e then°i thenteruYer eventaaisa nthe °abe at in not t of any emergency The and necessary amou::mpanY maY make urgent e approval of the h within the purview of the budget with t City manager or his designee. f.:,.Company as Manager This Management Agreement establishes The Company as the manager and operator of the subject facility, and any person dealing with The Company shall have the right to rely ful3.y on its power and authority to bind the facility with regard to the use and occupancy thereof, excepting however, The Company shall not have the authority to encumber real or Personal property except as provided in this Agreement. The parties hereto intend that The Company shall be an independent contractor, and the employees and agents of The Company shall attain no rights or benefits under the Civil Service or Pension Ordinances of The City, nor the rights generally afforded class- ified or unclassified employees of The City, nor shall The Company or its employees be entitled to Florida Workmen's Compensation benefits as employees of The City. •'• -10- "SUPPORTIVE DOCUMENTS FOLLOW" . '` • . • • . 80-62 The Company shall have the sole conti of of `the manner and'. ing with the terms of means of performing this Agreement subject to The Company comply- this Agreement. The Company shall have the full power and authority to take all actions tobring about an` efficient operation of the marina and to maintain it as a first class 'marina, except for actions specifically prohibited in this Agreement.: The Company shall have the exclusive authority to hire and discharge all of its employees necessary for the operation of their compensation and privileges.'< a marina g•. facility and to fix Professional and Technical Services The -'Company may employ provide such legal, accounting and other professional or techni- cal services as The Company deems advisable for the proper main tenance and operation of the budget for the then current h. Additional Responsibilities F consideration provided in Paragraph technicians and consultants to fiscal year. or as a' minimum: Marina Facilities, subject to the The Company; shall, (1) Provide The City with an estimate of required operat- ing expenses for the forthcoming fiscal year=sub approval by ject to the City Manager, which approval shall be unreasonably withheld. (2) Maintain books and records in sufficient. detail: to not meet acceptable accounting practices.:. Said books' an re- - Cords shall be accessible to The City at' reasonable times. l employees (3) Be responsible for hiring and discharging al related to the operation and d normal maintenance of the (4) facility. Provide normal and routine maintenance of the facility in order to insure that the property remains in good state of repair, free from hazardous conditions and deterioration. (5) Be the responsible for theadministrationof all Leases of marina facilities including, but not limited to the collection of all sums due from Tenants and the -11 PQJENTS�80-62 f, general public for the rental and use of facili- ties, including, but not limited to slip rentals, , • • ' • ,.• , mooring fees, dockage fees and fees of any nature .1•:. • for use by said public of the subject premises. The Company is authorized and empowered and is granted the responsibility to pursue all appropri- ate legal action as is necessary to collect unpaid obligations and enforce all Landlord's rights, in- cluding the pursuance of all legal remedies ava3.1- able for such purposes subject to the provisionsiboiflithe th City Charter. The City agrees that e reapons ty of The Company herein provided shall be pursued in the name and on behalf of The City. shall (6) The the amount of not less lhae(Company furTehenadreguate bond Dol- lars$ 000) requiring Thethan Company to ifty unusaanrdterly account for revenues it receives on. behalf of. The City in accordance with the provisions of this Agree ment. (7) The Company shall be responsible for the complete operation of the Dinner Key Marina Complex as de- fined and legally described herein. (8) The Company will institute management systems, secur- ity systems, training and staffing programs , promo- tional and advertising programs and financial con- trol systems that will provide a secure financial operation and achieve the objectives of The City for the Dinner Key Marina. (9) The Company will act as manager for the redevelopment and reconstruction of the Dinner Key Marina facility at the present location so that the marina will be a public waterfront recreation facility at the present site. This reconstruction will be financed by The City through Revenue Bonds. The construction and renovation will comply with all governmezita3. rules and regulations. -12- 8 0 - 6 2 (10) During the term hereof, The Company: will .maintain and operate 'the premises and all -improvements thereon, in good condition and repair consistent with the operation of a, first class marina. (11) The Company shall be responsible for all claims, suits, actions and damages that may arise as "a re- sult of the negligence of The. Company's operation of this facility. (12) Company will not allow any signs or advertising material to be placed on the exterior of any structure in the facility, (13), Except for dockage and Mooring 'The Company will not subcontract any :portion of the marinaoperation without the prior consent of the City Manager which shall not 'be unreasonably withheld. (14) The Company will:abide`by and enforce all rules and regulations now in effect or established. by The City_ from time o time. Any rule or regulation es- tablished by The Company shall ,require approval of` the City Manager which shall not be unreasonably with- . (15) The Company will inake every effort to enforce the re- moval of all vessels from the facility upon issuance of Hurricane Warnings by the National Hurricane`:. Center. (16) The Company shall enforce the rules and regulations asfollows good. condition with their own in the Dockage'Agreement (a) Only vessels in power will be permitted in theberthing::area. b) Berths "will :be assigned by, the dockmaster'o his representative -a d: no changes out permission. (c) The Company;.will be respon Will : be made `with- ible for keeping the piers clear of all vehicles, small boats supplies and storage of any items except those that can be -13- stored n the locker that may be-suPPlit� with the. i berth of vessels d)- The Company will limit the number ( except that; one that can use each berth to one, srovided it � is mall boat may also be berthed, p. and does not pro - within the limits of the berth, ject'beyond the pilings• limit the repair work that may will P (e) The Company of Miami:'. done at the docks as defined in the City be Agreement. will enforce the rules that pro (f) The Compa ny hibi flame, torches.: t the use of charcoal burners, open .< t •_ , and (g) the use of T.V. sets., radios and other on board equipment that nuisance. rohibsting to any' shall. enforce the rule p r bage trash, human w (h) The :Cop .. such as;gar- bage throwing .overboard of any objects, aste, and shall enforce -the pro swimming, diving or fishing from any other open e9 pen flame producing uipmen shall enforce the present rules on T Company musical instruments, hailers, may create a', visions prohibiting the piers• ntemplates the installation of radio The. Company co rovs.de the-Dockmasters Quarters to P equipment within :In adds. to-to boaters �with�ship e communication. closed :.circuit T.V. The Company will install a docks and tion, at the provide better security scanning to'- • their environs. newsletter, either monthly (18)' The Company will initiate a• boaters abreast the. Dinner Key • biweekly, to� keep of activities, 'events., andgeneral information con cerning the area. from programs emanating 19) The Company will encourage P ent. ( tours, entertainm Dinner Key such as regattas, (20) The Company will endeavor ' to establish a relation- ship with other marinas in the area with the in- tent of providing better service for all of the boating public. (21) The Company will endeavor to promote:. boat uses between the tenants of exchange of Dinner Key Marina, and marina tenants, in other parts of;.the country and the. world. (2 2The City or. The Company ; may, from time :to time, request, changes. in the scope Of servicestobe per formed hereunder.Such changes which are mutually... agreed upon between The City and The Company must incorporated - im written - amend • ments' • to . this Agreement following approval thereof by the City • Commission. (Additional'services to be provided by The>Company are cluded in other p�rtions of this Agreement. -15- PRO rrt't oLj3'W 6. CONSTRUCTION OF NEW FACILITIES The parties hereto agree that The City and The Company shall use', their best efforts to expand Dinner Key. Marina to pro- vide for approximately 550'slips, .200 moorings and support facilities for :the >>marina, including, but not limited to`dock- master' s offices, laundry services and restrooms, storage space formaintenance equipment, mail areas, bait & tackle, carry-ou food facilities, sail boat rental areas, transient facilities and commercial`, boat facilities and The City deems appropriate. such other facilities a The parties agree to provide the maximum number of slips consistent with the maintenance of a sound environment and su ject to approval of all regulatory agencies. t is anticipated that The. City shall issue of approximately $4,500,000 to provide financing improvement and expansion. The parties that The Company shall select and pay from its own resources the design and engineering team to perform the permitting and preliminary engineering. Said team shall be selected subject to the approval of The City Manager, which approval shall not be unreasonably withheld. The Company agrees to pay a maximum of $100,000 for pre- liminary engineering and permitting of the marina. Preliminary engineering shall not include working drawings and permitting shall not include the cost of City of Miami permits. Attor- ney's fees, engineering and consultants fees and all other costs and expenses shall be revenue bonds for the marina hereto mutually agree "SUPP PT'1\ DOC U M 1- -1 FOLLOW" included in the permitting process. 80-62 • The Florida Consultant's Competitive Negotiations Act (F.S. Sec. 287.055) shall apply to the engagement of all con- sultants who are the subject of said' Statute who are compen- sated by City funds compensated by Compan as distinguished from those 'engaged: and y). The Company shall participate n. the competititve selection process by having a designated representative appointed to the selection committee.. During the preparation of engineering plans and spec cations, The Company will determine the appropriate layout, support systems, anci].lary uses and design and construction criteria, subject to approval by The City Manager. The City shall issue all construction contractsfor the facility. The; Company shall provide on -site oversightand management of, the: shall notify The City of anyproblems that arise project and during construction that will affect the operation, management and maintenance of the marina. The parties agree that the completed design plans specifications shall become the property o; CUSTODIAL SERVICE The ;City.. an The Company shall furnish all. maintenance supplies for housekeeping and shall provide all custodial and janitorial E_�_ services required to maintain the t...i ,and presentable condition. 8. CITY S RIGHT TO EXAMINE PROPERTY ,..? The Company shall make available for inspection by City � C2D Manager or his designee all areas of the property under its control, at any time for any purpose the City Manager deems necessary or incidental to or connected with the performance of The City's duties and obligations hereunder. 9. DOCKAGE RATES The Company shall recommend dockage rates and rates for property in a` clean, sanitary the use of other facilities and services to the City Manager. The following costs,expenses and economic factors shall be considered and included in setting dockage rates, namely: Bond debt service requirements of one hundred fifty percent (150%) coverage -17- 80-62 charge all as rates other operating expenses,' management fees ;and .other costs, set forth in paragraph 4 of this Agreement. Dockage shall be generaily consistent with those charged at marinas of comparable quality situated on public lands in the Dade County area. In addition The Company shall'. be permitted to require vessel owners to pay for utility service to the dockage rate which is separately metered. Rules and Regulations:. The Company shall recommend to the City Manager any rules and regulations it deems advisable for the operation, use, repair, maintenance and management of the marina facilities. The City and The Company agrees that such rules and regulations shall be prescribed and enforced to provide inarina services to 1 publicf thehighest quality, with due observance the genera of of amenities and astute standards ance and maintenance Company covenants tha commensurate with the appear standards •of the surrounding.area. The- t it will observe and enforce said rules and regulations. 10. CONFORMITY TO THE LAW The Company covenants to comply with regulations and order of Federa autho tate, all laws, ordinances, County and Municipal cities pertaining to the propertyand operation thereon. The Company further covenants and'agrees that there will discrimination as be no origin in personnel. to race color creed, sex or national` the use of the property:. or in the employment of its`..., Protection of: Tax Exemption: The City and The Company covenant and agree that, notwith standing any other provisions hereof, the marina facilities 0 ' shall be operated and maintained hereunder at all times.` as OD c public facilities owned by The City and serving.. the general fr. •- , �.j mriL) public and shall be available on a regular basis for general public use, and that in the operation and maintenance :of the y CIO fiagw. -18 i . ■ 80-62 marina facilities nothing shall be done by either The City or. Company to jeopardize the exemption from Federal income tax of the interest on the bonds (exclusive of bonds held y a sub- stantial user of the marina facilities or a related person, as defined in the Federal income tax regulation). Any provi sion in this Management Agreement which jeopardizes such tax exemption shall be deemed null and void. 11. PAYMENT OF UTILITIES The Company shall pay for all utilities consumed on the premises and waste collection fees, if any, as an operating expense except as provided in paragraph 9 hereof. 12. WATER TAXI AND TRAM STATIONS In the event The City decides to provide or grant a franchise to provide a Tram or People -Mover system for the Dinner Key Park area, the parties agree to establish a station and roadway for access for said system on the property, so long as the same does not unreasonably interfere with the operation of The Company under this A.greement. Any costs in adjusting tlie site use to accomodate said system shall be borne by The Ca.t, .y or its franchisee, as the case may b.e. In the event The City decides to provide or grant a franchise for Water -Born Transportati.on to and from the Dinner Key area to other locations in The City, the parties agree that such free eInbarking and disembarking facilities for said Water' Born Transportation will be provided. Any costs in adjusting the site use to accommodate said system shall be borne by The City or its franchisee, as the case y be. Location of said facilities as described above shall be • ' , • • • - • • • mutually agreed upon. 13. HURRICANE AND EMERGENCY The City shall, during any emergency such as hurri- cane, flood, fire or any type of disaster, cooperate with The Company for the security of the premises. The City shall use its best efforts during an emergency to safeguard the said premises. "SUPPORTIVE -19- DOCUMENTS FOLLOW" 8 0 6 2 • 14. INVENTORY any, All fixtures, urnishings, furniture, and equipment,, if in or upon the facility and their condition will be in - ventoried`before occupancy by The Company. The Company will maintain fixtures, furnishings,; furniture and equipment, if any, in good and operable condition during the term of this Agreement at its own cost and expense, except for those fix- tures, etc. attached to docks and building to be demolished, and said property shall be deemed in its sole custody and n the event that any of the aforementioned items are lost, stolen or damaged, they shall be replaced or repaired at the cost and expense of The Company, ordinary wear and tear cares excepted, 15. OWNERSHIP OF IMPROVEMENTS during the term of this Agreement.' All improvements, f• ixtures and equipment constructed installed at the facility or purchaged with `City funds 'shall he Company shall have title to all per- sonal property, purchased with Company funds which were not in- cluded in the annual operating budget. Upon expiration or title to the property, all perm - termination of; this Agreement anent improvements, fixtures and equipment purchased with. The'. City funds shall be peacefully 'surrendered .and delivered to The City..` Title to all Company equipment shall remain The Company and The, Company shall have the right to same from the premises. vested wi remove t 16. DAMAGE OR LOSS TO COMPANY'S PROPERTY The Company assumes all risk of damage or loss to its property for any cause whatsoever, which shall include, but not be limited to, any damage or loss that may occur to mer- chandise, goods, equipment or other property covered under this Agreement, if lost, damaged or destroyed by fire, theft, rain, water, or leaking of any pipes or waste water in or about the property 'or"from hurricane or from any act of God, or any act of negligence of any user whomsoever. 80-62 17. DESTRUCTION In the event the premises shall be destroyed or so damaged or injured by fire, hurricane or any other casualty during the life of this Agreement whereby the property shall be rendered incapable of use for its intended purpose, the parties agree to use the insurance proceeds to rebuild the facility. Interest on insurance proceeds shall be used to pay the bond service require- ment to the maximum extent possible. 18. INDEMNIFICATION • ';'1•40'.,-0;)Mpony..•co:v.enants.:•:•afid.„' Agree. • that-. -it shall indemnifY-. and'save harmlessThe City fromandigainstr __•.-:Suits,..-aCtionS,.-,:damagei- Orothercauses of action :: dur- ing the term of this Agreement for any persona]. injury, lossof stained 'inor about the property, by reason 0f The cOinp4ny's. manageinent'!''theriOf, and from and against anyorders,. judgments or decrees,. which Inay . • "- • ,.•,-:be-entered:.thereOni,and:.--froin: and: against all costs, - • fees, expenses and liabilities incurred in and about the defense of any such claim and the investigation thereof; provided, how- ever, that before The Company shall become liable for said cost, The Company shall be given notice in writing that the same are about to be incurred and shall have the option itself to make the necessary investigations and employ counsel of The Company's own selection for the necessary defense of any claim. The City may, at its option, retain its own counsel at its sole cost and expense in addition to the provisions as hereinabove set forth. 19. ADVERTISING The Company agrees to undertake an aggressive advertising program to inform the public of the availability and services of the marina, and The City agrees to use its best efforts, through its Publicity Department and other Departments, to assist The Company in promoting the public use and enhancement of the marina. Further, The Company shall undertake, with the City Parks and Recreation Department, to erect appropriate signs de- signed to assist and direct the public to the marina and its services. "SUPPORTIVE -21- DOCUMENTS, 8 - 6 2 FOLLOW" The Company agrees to work with area merchants and busi- nesses to develop, an integrated program of auxiliary services such as hotel accommodations, car rentals, restaurant and laundry services, for marina users. 20. DEFAULT If The Company shall neglect or fail any of the terms, provisions herein contained, for a period of serve to perform or ob- conditions andcovenants thirty (30) days after re- ceipt by The Company of notice of such neglect or failure, or if more than thirty (30) days shall be required because of the nature of such default, if The Company shall failwithin thirty (30) days period to commence and thereafter proceed diligently to cure such default, or if The Company shall be declared bank- rupt according to law, then and in any of the aforementioned events, The City may lawfully and immediately or at any thereafter, the facility without demand and/or notice, enter into and upon or any part thereof and expel The Company and term- inate this Agreement. 21. NOTICES Notices from The City to The Company shall be deemed duly served if mailed by registered or certified mail, ostage pre - Miami, paid; to The Company at 444 Brickell Avenue, Suite 1000, Florida 33131, attention: Murray H. Dubbin, General Counsel,' and Notices from The Company to The City shall be deemed duly. served if mailed by registered or certified mail, postage pre- paid to the City Manager, City of Miami, P. O. Box 330708, Miami, Florida 33133; or to such other respective persons or addresses as the parties may hereinafter by notice given in the foregoing manner TIME IS OF THE ESSENCE designate to eachother,`` the occurrence or performance of event herein shall be of the essence unless otherwise 23. TAXES The parties agree that the management;;: and operation the Dinner Key Marina facility and : those operations convenient or necessary therefor are public purposes and, therefore, "SUPPORTIVE DOCUMENTS ®0-62 ad valorem taxes should be assessed by the Dade County Tax • Appraiser. If, however, taxes are assessed by said property appraiser, the parties agree: A. Assessment upon or against concession properties. In the event that the property tax appraiser assesses taxes upon . • or against such portion or portions of the lands subject to this Management Agreement as are in the control of concession- aires, or upon which concessionaires are situated, in the per- formance of any concession agreement hereunder, the parties agree that at the request of and at the expense of any such con- cessionaires, the parties may defend against such assessment on behalf of such concessionaires. The extent of such defense by • the parties shall be as reasonably requested by such concession- . • . sires, provided further, however, that at all times the parties have first determined that the said concessionaires requesting such defense or requesting the joinder in such defense, will fully and completely pay the costs and expenses of such defense as may be incurred by the parties or either of them including court costs and reasonable attorneys' fees incurred by the par- ties or either of them in such defense, and provided, further, that the said concessionaires requesting such a contest of assess- ment fully and completely indemnify and save the parties jointly and separately harmless from any and all claims, charges or in- debtedness resulting from the conduct of such defense and con- test in the event the same is not successful. All concession agreements entered into between The Company and its concession- aires shall through appropriate language incorporate the terms • and conditions of this covenant. B. Assessments against the marina property. In the event taxes are assessed against the property upon which docks, piers, moorings and any other properties devoted to marina use and upon which the marina is located as well as properties upon which the marina administrative facilities are located, as well as all improvements thereto, are assessed by the property tax appraiser, the parties hereby agree as follows: 1. Both parties agree to cooperate fully witheach SUPPORTIVE DOCUMENTS 8 0 - 6 2 Foi lawful and based upon that the taxes are due and such determination i reasons, other than the existence of this Agreement, then it is agreed that all real property school board and municipal shall be included in of other to contest and defend against said.. assessment. test and, defense shall, at the option of the parties or 'either Said con. of them, be conducted at the administrative level, i.e. before the tax appraiser, the tax appraisal adjustment board or an successor organization, and before the courts, to such extent and to such level as. The Company or The City 'shall determine. 2. The costs and expenses including reasonable at which are incurred by the parties as well as such accrued and been paid during the course of the litigation contesting said taxes, shall be included in the oper- ating budget as. operating expenses and become a part of those'. economic elements going. to the makeup of the' dockage rates, as more fully referred to in paragraph 9 of this Agreement. 3 If "final adjudicatory action,:: i.e. the final' torneys' fees taxes which have order o ment issue has been submitted for determination, judicial, or f the highest tribunal before which the property assess administrative results ina determination that such' assessment and Management` taxes, county, madea.°part the operating budget as operating expenses which shall.; included and made;a part of the total expenses used to determine dockage rates as set, forth in paragraph 4. In:the event the final adjudicatory action de - elates -the assessment lawful and the taxes to be due and payable, solely due to the existence of this Management Agreement, then it of is agreed that the amount of said taxes shall be made a part the operating budget and shall be deemed operating expenses included in the makeup of the dockage rates as set forth in par- agraph 9, unless the effect of such inclusion causes dockage rates to exceed the average rates charged for dockage and moor- ings at other marinas situated on public land located in the Coconut Grove area. In such latter event, The Company may pay any amount of tax which causes such excess of the average rate from its profits. If The Company fails to pay such excess, then -24- SUPPORT OOC ��� Ts Fl iE i ()IAD, 80-62 The City shall terminate this Management Agreement and reim- burse The Company for expenses incurred in accordance wit Paragraph 6 - CONSTRUCTION OF NEW FACILITIES. be 5. The economic effect of such property taxes shall computed annually andmade a part 'of each.`semi- Annual :oper- ating form budget with such adjustments as may be required to con to the terms of This Agreement.. 24. LAWSUITS --RENT STRIKES If and in the event a lawsuit is brought by any party against The Company solely, due to. the"signing of this Agreement, and/or agree; to mutually defend in a temporary delayof t The City, which in substance arises then the .parties said lawsuit.. If.said ':lawsuit results he projects, this. Agreement shall be extended by the amount of time caused by the delay.' If, and in the event that there is a tenant strike ora similar strike or: refusal to' pay :rent _:or la nature in which 'rental :•payments ; are placed or in any court fund,.The Company shall be relieved of its obli- lawsuit of any type or in any escrow `account :' gation to pay to The ,:City :any _amount in excess of:the monthly_ bond service requirement until such rent strike: or suit i settled and all SUMS are released to and/or obtained by The Com- pany. This provision shall not permit a reduction in the amount of consideration required to be paid lay of the required payment. 25. INSURANCE -but 'only a,temporary de. The Company shall not commence work on this Manageinen Agreement until it has obtained all insurance required under this section and such insurancehasbeen approved by The City. times, during the term of this Agreement, maintain .in'full force and effect thefollowing de- scribed insurance covering the property and the operation thereon: (a) '. Public liability insurance of not less than, $1, 000,000 per:. occurrence for death or bodily injury' and not less than $1,00.0,,000 per occurrence for property damage. casualty coverage of not less than ninety (90%);`of replacement value of all existing and future improve- ments. -25- "SU PORT VE f }I =�� 1 r 80-62 sured Said insurance shall name The Cityas an additional in - and shall provide that The City shall be given at least thirty (30) said policy days' advance written notice of cancellation of or any material modifications thereof. Certificates of insurance shall be filed with the prop- erty and insurance manager of the City of Miami. The insurance provided for herein shall be written by a company authorized to do business in the: State of Florida` through an agent authorized to do business in"the "State of Florida and must be rated at least A;as to Management and Class 10 as to Financial according to A.M.` Best Key Rating., Guide, latest edition. The Company shall further carry any other sonably required in connection with the 26. FUNDING The 'City 'shall be solely proposed, operation.. responsible for funding the im- provements described herein. from revenue bonds in a sufficient Million Dollars ($5,000,000). 27. CONFLICT OF INTEREST • The City agrees to;provide. fun ds:` amount not to exceed Five No stockholders, directors or employees of The Company shall have any interest in any business which supplies The Com- pany with goods :or'services without advice to and consent of the Manager. It is understood and agreed that The Company's Heys,; Dubbin; Schiff, Berkman & Dubbin, are also stockhold- City Cit attor ers of The Company and that they may, in addition to receiving any profits or dividends declared, be compensated at their ular rates as an operating expense .in connection with any. of Company's: needs 'or rights and obligations arising out connection with the Provisions of this Agreement. 28. ATTORNEYS' FEES'AND COSTS In the event that it is deemed to file a lawsuit ill the appropriate court of law in order enforce any of the terms and provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and costs. -26- "SUPPORTIVE DOCUMENTS FOLLOW" 8. 6 2 .• • 29. CAPTIONS The captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, Unlit or prescribe the scope of this Agreement or the intent of any provision hereof. 30. REVISIONS DUE TO BOND ORDINANCE The parties agree that this Agreement shall be revised to the extent necessary, in the opinion of underwriters for The City, of its revenue bonds, to reflect provisions in the Bond Ordinance as may be necessary or desirable to make the revenue bonds marketable. In no event shall the provisions respecting the amount of the management fee payable to The Company be changed. 31. ENTIRE AGREEMENT This Agreement contains the entire understanding of tile parties hereto concerning the subject matter hereof and no modification, release, discharge or waiver of any of the pro- visions hereof shall be of any force and effect unless in writing and signed by both parties. 32. REPRESENTATION BY CITY City warrants and represents that it has full power and authority to enter into this Agreement under the Constitution and laws of the State of Florida and Ordinances and Resolu- tions of Dade County and City of Miami, and that all condi- tions and things required by the Constitution and laws of the State of Florida, Dade County and the City of Miami to happen, exist and be performed precedent to the signing of this Managentent Agreement have happened, exist and have been performed as so required. -27- 80-62 • 1 33. NON -ASSIGNABILITY CLAUSE This Management Agreement may not be assigned by. The Company without prior approval of the City Manager. Any assignment, transfer or conveyance of stock to parties who are not stockholders as of the date of this Agreement shall be deerned an assignment requiring the City Manager's prior approval. An assignment i subject to the restriction contained herein shall not nclude an assignment to the personal representative of.a deceased stock_ holder or to said stockholder's estate or heir. Provided, however, that a subsequent transfer, assignment or conveyance frorn h stockholder's estate or heir to a third party who 3..s not a stock- holder as of the date of this Agreement shall require such approval. Also excluded from the operation of the restrictions of this clause shall be assignments, transfers or conveyances between and amongst persons who are stockholders as of the date of this Agreement or members of their immediate family. IN WITNESS WHEREOF, the parties have hereunto causedthie9se presents to be executed this day of.e ATTEST: THE CITY OF VIIAMI • Ralph Ongi.e, City Clerk Joseph Grassi.e-• City.Manager CSC°AYPN'EYRECREATION DEVELOPMENT MPN Robert M. Traugott, Secretary Paul S. Wa3.ker, President APPROVED AS TO FORM AND CORRECTNESS: GEORGE F. KNOX, JR. CITY AT NEY, TY OF B • 11111 111111PAPOOP 80-62