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HomeMy WebLinkAboutM-78-0728DINNER KEY MANAGEMENT AGREEMENT SUMMARY 12/1v75 2_TERM 10 YEARS WITH SEMI-ANNUAL INSPECTIONS FOR PROPER MAINTENANCE AND OPERATION NO ADVERSE COMMENTS MADE DURING 10 YEARS THEN COMPANY HAS RIGHT TO AN ADDITIONAL 5 YEARS UNDER THIS AGREEMENT 2, USE GENERALLY SMALL BOAT MARINA & MOORINGS BOAT RAMP WITH NO CHARGE SHOWERS & RESTROOMS SECURITY SYSTEMS CONCESSIONS SUCH AS BAIT & TACKLE, FOR TAKE-OUT, FUEL, BROKERAGE MARINE HARDWARE, LAUNDRY & OTHERS SAILBOAT RENTAL & CHARTERS. ALLOWANCE FOR FALL BOAT SHOW SPACE FOOD & BEVERAGES CON Ai.,t ON PRIOR TO BOND ISSUE GROSS RECEIPTS OPERATING EXPENSES MANAGEMENT PEE (1 /PT1/DAY FOR DOCK SPACE LEASED) EET.GOES TO CONSTRUCTION RESERVE AFTER ISSUANCE OP BONDS (DURING CONSTRUCTION) GROSS RECEIPTS • OPERATING EXPENSES DEBT SERVICE (INTEREST ONLY) • 1/2 OF DEBT SERVICE TO CITY (BONDS REQUIRE 115 COVERAGE) - MANAGEMENT FEE (1/FT,/DAY + 1/10 OF 14 POR EACH 14 FINGER PIER RATES EXCEED 12 + 10% OP MOORING REVENUE) NET IS SHARED 50-50 BETWEEN COMPANY & CITY UPON COMPLETION. GROSS RECEIPTS - OPERATING EXPENSE (INCLUDES FOR AMOUNT EQUAL TO 1/35 OF. BOND USED AS A DEPRECIATION & REPLACEMENT RESERVE) DEBT SERVICE (1ST PAYMENT ON PRINCIPAL DUE 1/1/83) - 1/2 OF DEBT SERVICE TO CITY MANAGEMENT FEE (SAME AS DURING CONSTRUCTION) NET IS SHARED 50-50 BETWEEN COMPANY & CITY :COMPANY IS ENTITLED TO 'PROFIT FROM CONCESSIONS BUT MUST RENT SPACE FROM CITY AT A RATE EQUAL TO DEBT SERVICE + 1/2 OF DEBT SERVICE + 1/35 OF COST OF SPACE ON SPACE SO PROVIDED ALSO COMPANY PAYS CITY 1 FOR EACH GALLON OF GASOLINE PUMPED 6 T U TI.BN"NEW FA.ILt`Y EXPECT $4 500 000 REVENUE BOND ISSUE TO PROVIDE 0 SLIPS 4 200 MOORING & ANCILLARY SUPPORT FACILITIES COMPANY WILL PAY $100 000 TOWARD COST OF PERMITTING AND DESIGN DEVELOPMENT DRAWINGS (IF MORE THAN $50 )00 IS REQUIRED ADDITIONAL $50,000 WILL DE ADVANCED FROM FOND. PROCEEDS & REPAID AT $5,OO0IYEAR INTEREST) COMPANY SELECTS DESIGN TEAM SUBJECT TO. -CITY MANAGER'S APPROVAL ALL DESIGN WORK'SUBJECT TO CITY• MANAGER`S APPROVAL CITY ISSUES CONSTRUCTION. CONTRACT .COMPANY SUPERVISES WORK ON BEHALF OF.CITY 9 DOCKAGE 'RATES COMPANY RECOMMENDS BASED ON BOND REQUIREMENTS & COMPARABLE FACILITIES SUBJECT TO APPROVAL OF CITY MANAGER 20, DEFAULT COMPANY HAS 30 DAYS TO CORRECT VIOLATIONS 3.1_1A XES . CONCESSION PROPERTIES ARE TAXED O1TY OR COMPANY MAY DEFEND AT CONCESSIONAIRES EXPENSE IF FACILITY IS TAXED COMPANY ANb CITY SHALL DEFEND IIFF. FACILITY IS FINALLY JUIDGED TO BE TAXABLE FOR REASONS OTHER THAN THE MANAGEMENT AGREEMENT THEN TAXES ARE SPREAD TO TENANTS E FACILITY IS FINALLY JUDGED TO BE TAXABLE BECAUSE OF THE MANAGEMENT AGREEMENT THEN TAXES ARE SPREAD TO TENANTS TO THE EXTENT THE RATES DO NOT EXCEED AVERAGES IN COCONUT GROVE AREA LE TAXES CAUSE RATES TO EXCEED AVERAGE THEN COMPANY PAYS EXCESS OR AGREEMENT IS TERMINATED AND CITY REIMBURSES COMPANY FOR DESIGN COSTS INCURRED M I ,M1WT..: ►,oIt I IC►V !` TIIiC Adtett tHTmadc and 'ehtor'ed into this ...�day of beoetiber, 1 by -and between the City of M .atti a r�ttii cipai Cot oration of tie•Mate of r1.oricla, hereinafter refer red•to The•City"•acid $iseayne Recreation bovelopment Company, a li .. Florida Corporation, hereinafter referred to as "The Cotpan€�" s4 .L.T•_N. E. 5.,.5_ErT:.Et. iVfitRtAS, The City ctirrently owns -And operates the •property and facility commonly known as the Dinner Rey. Marina and WHEREAS, The City Commission desires to have private initiative and enterprise reconstruct and redevelop the .Dinner Rey Marina site into a first class operating marina WHEREAS, The City has advertised for Public Proposals for the lease and operation of the Dinner Key Marina; and WHEREAS, The Company along with several other proposers made public proposals in accordance with the "bidding" documents; and WHEREAS, The Company offered to renovate and design a new marina facility with private capital; and WHEREAS, The City now desires to finance the reconstruct- ion and development of the marina with monies from revenue bonds in order to keep the interest cost of repayment to a minimum in consideration of lower dockage rates for tenants and in order not to encumber said premises with a long term possession contract, and WHEREAS, The City has rejected all proposals for a long-term ].ease and operation of Dinner Key Marina; and WHEREAS, The City Commission directed the Manager to negotiate a short --term management contract with Biscayne Recreation Development Company; and WH1;111A5 The Company both desirous hhd callable f' i�'s c itistrtictidn management, and management & operatioh of the tac- 111t1eS at said m 1t ihn; ritld Wlltkt AS, The City Atid The Company have negotiated this Agreement , NOW TlllJRt1ORE, for and in consideration of the premises and the mutual covenants hereinafter contained to be obserVed and performed, the parties hereto agree as follows: 1, bMSCRIP TIQt1 OF PP.1 MtS1 S The parties hereby agree that an accurate description of the managed premises, hereinafter referred to as "The Facility", "Property" or "Premises", is shown on exhibit attached hereto and made a part hereof. 2 TERM The Term of this Agreement shall be for a period of (10) ten years including the time for permitting and construc- tion. This Agreement shall commence on the day of 197 'A" The Company shall have a preferential right and option to renew this Agreement upon the same terms and conditions at the end of the initial term for a (5) year period provided as follows The City shall rate The Company on its operation at least two (2) tines per year at six (6) month intervals. rating shall be based upon the condition of the docks and piles and the maintenance and cleanliness of the grounds 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 e::ercise, this right at least sixty (60) days prior to the expiration of the Agreement. 3. USE The Company, as the management agent for The City, shall be the exclusive agent of The •City and shall operate l•'ot' 'the Doti:s dei ati n provided in flatagraph'fbUt herein, 'I'ht 'Compa% Y sltail tapeiAtite alit iroppe °Ly- tot a --small boat Tort,' Mariha atfi 1 creational facility, c f.ferint•dockage acid•other tnatiina 'elated sett' Cet,' foi- •Lhe use of and by tho ,enerat public,. shall tnetttde but `not ' be limited to t:he' follot3ing t l och c and hoorittg, of boats, 4 boat tamp facility, which shall be open to pub .ie and for..which no charge .shalt be made: C, Shower and•restrootm facilities- for use by. -those .persons docking•and mooring boats Closed security system -for the docks, Security system for moorings Sailboat, charter boat and commercial boat rentals, Coin operated.•laundry facilities, Maintenance of landscaping, perimeter walkway lighting. Sale. of -bait, tackle and ice. - Sale . of•marine hardware, the k. Sale of take-out food and beverages includin 1, ' Sale of. fuel.. Launch services for moored boats. Boat •sales.and boat brokerage, provided, however, •-that a•maximum of five percent (5%,) of the total 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'Ciry Manager,. which shall not be. unreasonably withheld. The Company further agrce$ that during each' year of the of this Agreement and any c> tefsiOn thereof , Tier 5, or any.eouival.ent-pier, shall be.-made•available•to such party.,party_as The City, raay designate as its contractors for purposes • of conductin ; the annual. Boat . Sho:•: , -The feces charged by The -Cor piiny to such de;,ignated ec ntractor shall, bc' an apiount no greater than the. total. normal daily rental. 'r'atp - then in of f :c:t for each of.the .slips on- said pier inuiti il.ied lay the number of days of actual- use: CON8l L Jl Y ION As consideration rot Lbe efficient management ,operation and Maintenance of: the pt opert ' tht I haul the period o this Agrc`.eti ent , the patties coVc:tiant as follows: Upon execution of this 11anagetient. Agreement, The Company shall pay ft oM gtoss receipts, as herein defined, its monthly o pet°at ing expenses; next, The Company shall pay itself one tett (1) por foot, pet day, for dock space leased; text, aria excess revenues shall be deposited in a construction reserve account which shall be used to reduce the amount of any bonds required for reconstruction and expansion of the Marina facility. Upon receipt of all permits necessary for reconstruction and expansion of the marina facility or upon receipt of bond proceeds issued for reconstruction and expansion, whichever comes first, The Company shall first pay from gross receipts its monthly operating expenses; next, The Company shall pay to The City a sum up to 1./12th (one twelfth) of the annual interest due on the bonds if sufficient funds are not available through interest earnings on said bond proceeds to cover interest during construction; next, The Company shall pa;.' to The City a sum equal to one-half (1/2) of the monthly interest required to be paid on bonds; next, The Company shall pay itself a fee of one cent (lc) per. foot, per day, for dock space leased and ten percent (10%) of gross revenues produced by moorings. At such time as the finger pier dockage rate exceeds twelve cents (12c) per foot, per day, The Company shall pay itself an additional one -tenth of one cent (1/lOth of le) per foot, per day, for each one cent (10 that the finger pier dockage rate exceeds twelve cents (12C) per foot, per day. A11 remaining income from gross receipts shall be deposited in a joint City/Company account and. annually shall he divided equally between The Company and The City. Upon compl.' aoti of harin:t reconstruct] defined) The Company shall pay its tenth i:eoi�it.s, as nerettl , x ly operating ex.pensc s and shall pay to The City the monthly bond service requitement for the total amount of the bonds used in construction of the docks, moorings ► do lzmaste ''s i office and ancillary facilities , excluding concessionaire spaces; next, The Company shall pay to The City a sutra equal to one-half (1/2) of the monthly bond service requiremen of the aforementioned bonds; next, The Company shall pay to itself a fee of one cent (10 per foot, per day, for dock space leased and ten percent (10%) of the gross revenues produced by moorings; at such time as the finger pier cdoc,:age rate exceeds twelve cents (12c) per foot, per day, The Company shall pay itself an additional one -tenth of one cent (1/10th of 1c) per foot, perday for every one cent (1c)> that the finger pier dockage rate exceeds twelve cents (12c) per foot, per day. All remaining income from gross receipts shall be deposited in a joint City/Company account and annually shall be divided equally between The Company anc The City Completion of the facility shall be defined as accept- ance by the City Commission of all contractorswork for renovation and expansion of marina facility as funded through the contemplated revenue bond issue. The Company shall also pay to The City its monthly bond service requirement on concession improvements for which bond funds may be required or used. In addition, The Company shall pay to The City one half (1/2) of the monthly bond service requirement for concession improvements, plus an additional sum on 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 shallbegin after the completion of said construction. Finally, The Company shall pay to The Cil•:.y one cent (10 per gallon of gasoline sold at the rtar ^.na, 4II profits received from itiy cot.ces oti cii' precnta e agtcet ent With any '. c one+ens s toiia it=e Of an 'Opt rat ion- w li'+oh The t Company operates in accordance with the terms and ov s'io s of this A reeMent shall be retained by The Company, The CoMpatw shall be ent:i Liied to operate any coheessions of to j enter into percentage tt reement s With conCeSSlotlaites to provide the following services: (1) Security systems for moorings (2) Coin operated laundry facilities (3) Sale of bait, tackle and ice (4) Sale of marine hardware (5) Sale for consumption, 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 Boat maintenance and reapir Boat brokerage services providing that any boat for sale shall pay the full price for moorings and for wet slip storage. Broker- age slips shall be limited to 5% (five per- cent) of the total lineal footage available for lease. (9) Other services subject to the City /tanager's approval. In the event The Company chooses not to provide any of the above services, The City may negotiate a concession for these services, Operating expenses shall be defined as salaries paid to the doclunaster-, assistant docicnia rter, deck workers, hoof:'::ccper, receptionist, secretaries, typists and other- employees pro- viding direct services to tenants; social security* and other employee benefi-t+s; legal expenses; auditinj;; office ta;pot;ses; M sCCllaneous tie .:fd equipment; tiLil._I.ts and Wa: E'e 1etiibVal ; i.fislttl,tiicc i ordinary 't: a i tlttehatice and repair; and Ve1tisitlg and promotion, (Further, annual operating ek=- peftses shall include a depreciation reserve and rep1ccctneht mno itit: equal to 1./35th of L1w total anoutiL of the bond issue used, excluding cot cesi ion space. Such funds shall be de- posited, on a monthly basis, with The City and shall be available for extraorclth ii y repairs and repincetnent 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 he Company from the operation and management of the facility except those revenues attributable to concessions that The Company provides at the facility. Bond service requirement as used in this Agreement shall mean the amount in any fiscal year which would be necessary for The City to pay the sum of the amount to be deposited in the interest account and the amount to be deposited in the principal account on its revenue bonds if bonds were amortized in equal installments over a period not less than twenty-five (25) years. Monthly bond service requirement is one -twelfth (1/12th) of the bond service requirement The Company shall deliver on or before the fifteenth (15th) day of each month, beginning with the second month of this Agreement and continuing each and every month thereafter. during the effective period hereof, at the office of the Department of Finance of The City, or at such other place as nay be designated hereafter by The City, (or at such other place. as may be designated hereafter by ..The City, ) the afore-. tnent;io ied hcnt 1y 'paytittxnts , %1_oti tiit 1t ;r' iti jpAyrient i Tho Cotttti atv ail rov..cic an otnting st ltetnetit iti ce ti_ficate si�� p pe fpf`tl`l sign(d by a duly 410t10t ik d officer a he Cot;tpltty settitlt; forth iti sUclt .1s the Director of 1'thante Of' The City May ptestrtbc, the ntloutits of gtoss sale;, 5, t A ACEMLtITSI I;Vt(t S This Management Agtcericnt: establishes The Company as the-matager and .operator of the subject facility, and, -any person dealing with The Company shall have the tight to rely fully on its power and authority to' bind. the facility twlith 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 theCivil Service or. Pension Ordinances of•The City, nor any -rights generally afforded classified 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. The. Company 'shall have.the.sole•control•of the manner and means -of performing this Agreement subject to The Company - complying with.the.terms of -this -Agreement. The Company -shall have full power and authority to•takeall actions to bring about an efficient operation of• the marina and to maintain it as a first. class marina, except for actions: specif:ically,prohibited in• this -Agreement. The Company shall have the exclusive authority to hire and discharge all of its employees necessary for the operation of A. marina • facility and to- f i : their coriipensation and privileges Pot the consideration provided in Paragraph four The Company shall, a a minimum: (a) provide The City with an estimate of required p g p .g i operating e�: crises for the forthcoming fiscal year subject to approval by the City Manager which approval shall not be unreasonably withheld. (b) Maintain books and records in sufficient detail to meet acceptable accounting practices. books and records shall be accessible to The City at reasonable times. (c) Be responsible for hiring and discharging all employees related to the operation and normal maintenance of the facility. Employeesmay re- quire training. (d) Provide normal and routine maintenance of the facility in order to insure that the property remains in a good state of repair, free from hazardous conditions and deterioration. (e) Assume the responsibility for collecting any sums due from the general public for the use of the facilities, including, but not limited to dockage fees and slip rentals. The Company agrees to pursue .legal action, if necessary, to collect said obligations. (f) The Coinpahy Shall furnish an adequate fidelity fond ih ah amouht of hot less than requiring The Company to quarterly account for r etenucs it receives on behalf of The City ih accordance With the provisions of this Agreement (g) The Company shall be responsible for the complete operation of the Dinner Key Marina Complex as defined and legally described herein (h) The Company will institute management systems, security systems, training and staffing programs.. Promotional and advertising programs and financial control systems that will provide a secure financial operation and achieve the objectives of The City for the Dinner Key Marina, (i) The Company will act as manager for the redevelop- ment 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 governmental rules and regulations. (j) 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 ()c) The Company shall be responsible for all claims, snits, actions and damages that may arise as. a result of the negligence of The Company's ope'rltipn of this facility. (t) The (JI imiy will not allow any s or adVet i}it MaLetial to be placed oti the exterior of any structure ih the facility, (tii) I kcept for dockage e hind Mooring, The Company hill not lease of sublease any portion of tie marina operation without the prior consent of the City Manager which shrill not be unreasonably withheld, (tn) The Company will abide by and enforce all rules and regulations now iri effect or established by The . Company from time to time. Any rule or regulation established by The Company shall require approval of the City flanager which shall not be unreasonably withheld (o) The Company will make every effort to enforce the removal of all vessels from the facility upon issurance of Hurricane Warnings by the National Hurricane (.enter. The Company shall enforce the rules and regulations in the Dockage Agreement as follows (1) Only vessels in good condition with their power will be permitted in the berthing area. (2) Berths will be assigned by the dockmaster his representative and no changes will be made without his permission, (3) The Company will be responsible for keeping the piers clear of all vehicles, small boats, supplies and storage of any items except those that can be stored in the locker that may supplied with the berth. (6) The Company will limit the number of vessels. that can use each berth to one, except" that ono' small boat:, inay also be berthed, provided it is wi_Lbi.n the li_►sirs of the berth, and doe$ not project: beyond the pilings. (5) The Company will limit the repair Work that May be done at the docks as defined in the City bf Miami Agreement (6) The Company will enforce the rules that prohibit the use of charcoal burners, open flame torches and any other open flame producing ecttiipment. (7) The Company shall enfor.cc: the present rules on the use of T.V. sets, mu:-ical instruments, hailers r radios and other on board equipment that may create a nuisanze. (8) The Company shall enforce the rule prohibiting the throwing overboard of any objects, such as garbage, trash, human waste, and shall enforce the provisions prohibiting swimming, diving or fishing from the piers. (q) The Company contemplates the installation of radio equipment within the Dockmasters Quarters to provide boaters with ship -to -shore communication. In addition, The Company will install closed circuit T.V. scanning to provide better security at the docks and their environs. (r) The Company will initate a newsletter, either monthly or biweekly, to keep the Dinner key boaters abreast of activities, events general information concerning the area. The Company will encourage programs emanating from Dinner Key such as regattas, tours, and entertainment. (t) The Company will endeavor to establish a relationship with other marinas in the area with the intent of providing better service for all of the boating public, (u) The Company will endeavor to promote exchange of boat t;ses between the tenants of Dinner Key Marina and ,marina tenants in other parts of t) e cQuntry and the werld, 1 (v)• The City •tir'• The Cc n'D by tnay4 from -time tt timoi request dhtthcjcss ih the scope of setVice5 to be performed hereunder, 8udh c'hattrJes Whdh•afe -iriutually. agreed uport be ttieen "The City and The -Company most bo incorporated ih'rwritteti amendments to - this lacjreement following approval thereof by the City Oommission. •(additional services to be provided -by The Company.are includedin other portions.of this 1(lreement). 6. CONSTRUCTION OF NEW VACI,T4Ms The•parties•hereto agree that The City and The Company shall'use their best efforts to expand Dinner ley. Marina to provide for appro>imately 550 slips, 200 moorings and -support facilities for the marina, including but not limited to dockmaster's•offices, laundry services•and'restroems space for maintenance •equipment, mail areas, bait & tackle; carry-out•food-facilities, sail boat -rental areas, transient facilities and.conunercial'-boat-facilities and such other facilities• as The City deems appropriate. The parties agree to provide•the maximum number'o -slips consistent with the maintenance of a sound environment' and subject.to approval of all regulatory. agencies. • It is anticipated• that.The.City. shall;issue revenue • bonds of approximately'$4,500,000 to provide financing the marina improvement and ekpansion. The parties mutually agree that The Company shall select the engineering team, subject to approval of the City Manager Which shall ,not be unreasonably withheld Said team shall have overall responsibility for bringing the project to contract,. bufifSt` tho propardtioh of encjineoting pidh ifica • .. t^i.atr�layout, bons, Tho Cornixahy ttii.1.-cieti. ctmnc: Lhe ap" t �. • sup port•systetti*, ohoitiary es and desiin at d consttudtiot critc is j subjoct to at p oval by the City Manalot.. `fhe•City -shalt •issue a11-cot1sttuction doh acts for .tho fac lityt '1'he Cotnpatiy shall provide on -site oversight and manaJetnent of the. project and shall notify ''he City of any problets • that arise during construction that Hii11 affect the opera.- tion, management -and maintenance of the marinas The Company agrees to pay a maiinutn of $100000.00 for preliminary engineering arnd permitting of the marina. Preliminary engineering shall not'include working drawings and permitting shall not include the cost of City of Miami permits. Attorney fees, engi>7eering.and consultants fees and all other. costs and expenses shall• be included -in the permitting process. In the event that the preliminary• engineering and .permitting costs in excess of.$5.0,000.00, The City shall-advance.any sum above-.$50,000.00 and -The. Company shall reimburse The City•at the -rate of per year,.' plus, interest equal to the revenue bond interest • • rate, until the sum advanced (but'not in excess of $50,000.-00) • ' is. paid. 7 . CUSTODIAL -SERVICE The Company .shall furnish.all maintenance supplies for housekeeping and shall.pxovide all•custodial•and•janitorial services required to maintain the •propertyin a cleans sanitary and presentable condition 8. CITY'S RIGIIT TO EXAMINE PROPERTY The Company shall make available for inspection by Manager or his designee all areas of the property under 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. $5,000.00 City its the. Cottpar y havo the'right to 6e't d6-dk44e dates :,and • ratt35 for. the vise of other, tati1ities and setVi.Ces • •subeCt to the apprOvd1 ot, the•City Nlanacer, Which shad not be unreasonably withheld. In setting dockacc. Cates, the folloWing e;rasts, e;tpehses and economic'' factors shall he Considered and included nailO.y. Sot:cl debts ser .;ice roquirements, fifty percent (50%) coverage chargeF, operating t`'..pense:;, InanagemC'It fees and other costs, al' as set forth in pal-acjcaph 4 or this Agree= meat. Dockage rates shall be generally consistent with those charged at other marinas of comparable. quality situated on public lands in the bade Coanty area. In addition to the dockacje rate, The Company shall be permitted to require vessel owners to pay for utility service which is separately metered. 10. CONFORMITY TO THE LAW The Company covenants to comply with all laws, ordinances, regulations and orders of Federal, State, County and Municipal authorities pertaining to the property and operation thereon. The Company further covenants and agrees that there be no discrimination as to race, color, creed, sex or national origin in the use of the property or in the employ- ment of its personnel. 11. PAYMENT OF UTILITIES The Company shall pay for all utilities consumed on the preen Les and waste collection fees, if any, as an operating expense except as providt'd in paragraph 9 hereof. 12. WA.TER TT,XI AND TRAM :;TATIONS In thv event The C-i t:„ clec i clvls to }provide or grant a rd uk. hise to provide a Tiaw of People -Mover ;y;; tem for the Dinner Key ?.ark area, Ti Company agrees to permit The City to establish a station and roadway for access for said system on the property, ;iO long $ the same does not ufrea-. seronly interfere with t'►e oporat. pn or 'Elie: Company under this 1 c r'eengpt , Any Posts in tadjusti.r) the sitsito use to. .aoco►iQ(ate s;ii:d system ' i;..*1, . bo i)orn 1-)y Ti10 s'ii Y or iti 4P tl,y e4$0 ; ,y the - evctit Ttie ] ty decides to . provide •bt tj h t a franchitt foe t{iatet- Orh tatisportatibn to and froth the birthet hey area to othet locations in the City 'fhc Cotnpa � ' di#00 to ptoVide. free embarkincj and disemarkit1c fadi.lities. for said Watet born ttanspottation. nny costs in adjusting • the Site use to accomodate said System shall be born by:The Cityof its franchisee, as the case may be. i,ocation of• said facilities as described• above shall mutually agreed upon. 13. HURRICANE Alb EMERGENCY The City shall, during any emergency such as hurricane, 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. 14. INVENTORY All fixtures, furnishings, furniture, and equipment, any, in or upon the facilityand their condition will be inventoried 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 fixtures, etc. attached to docks and buildings to be demolished, and said property shall care. In the event that be deemed in its sole custody any of the aforementioned items are if lost, stolen or damaged, they shall be replaced or repaired at the cost and expense of The Company, ordinary wear and tear accepted, during the term of this Agreement. 15. OWNERSIHIP OF IMPROVEMENTS All improvements, fixtures and equipment constructed or installed at the facility or purchased with City funds shall be owned by The City, The Company shall have title to all personal property purchased with Company funds which were not included in the annual operating budget, Upon expiration _ or' termination of th�-� Agreement, title to the property, 41 1 pernifent improvements, fixtures and equipment purchased -1:6- i4ith• the titSi funds shall be pcacefully•sutrendoed a is 4ei vered to Tho City Tit C tb A11 company et uiptheht shad teilaih vested ttti The Company ,and P'hc Cotnpahr' Shi1.lhave the tight to remove the same frotfl the premises+ a55O CO tI?Itt�.Y...i.: �TtOt?t;R' 'Y The 'Company. assumes all risk:- of damage or loss to its property for aYiy cause whatsoever r twhich shall include, out daina e of loss that may occur to not•be 1ii<►ited to, ar►y g merchandises goods, equipment or other property covered equipment • under this Agreement, f.lost, dattaged or destroyed by fire theft, rain, Water, or leaking of any pipes or waste. Water • i n or about the property or froth hurricane or from any act of God,. or• any act of negligence of any riser of the facilities • or any persons whomsoever. 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 untenable, the parties agree to use the proceeds to rebuild•the facility.. proceeds shall -be• used to pay .the to the maximum•extent possible. 18. INDEMNIFICATION The Company covenants 'and.save harmless.The City insurance interest on insurance bond service requirement and agrees that from and against it shall indemnify any and all claims, suits-, actions,_damages or other causes arising during the term of this Agreement for any personal injury,, loss of life or damage to property sustained in or about the property, by reason of, or as a result of The Company's mttanagement thereof , and from and against any orders, judgments or decrees, wh ich may be entered thereon, attorney 'a fees, expenses and from and against all costs, and liabilities incurred in and about the defense of any such claim and the investigation thereof; provided however, that before The Co iPany shall become liable for said cost, The Company shall be cgiven notice in writing that the same ?rp about to be i eurred and shall have the option itself to of action Make the hecessaty investigations and employ counsel bf one Company's oWh selection for the nedessar ' defense of am Claim. The City, may, at its optioht retain its own dou :sel at its tele Cost and ekpehse in addition to the provisions as hereihabove set forth. 19. ADVERTISING', The Company agrees to undertake an aggressive advertising program to inform the public of the availability and ser'f'icea 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, wi:h the City Parks and Recreation Department, to erect appropriate signs designed to assist and direct the public to the marina and its services. The Company agrees to work with area merchants and businesses 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 to perform or observe any of the terms, provisions, conditions and covenants herein contained, for a period of thirty (30) days after receipt 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 fail within thirty (30) days period to commence and thereafter proceed diligently to cure such default, or if The Company shall be declared bankrupt according to law, then and in any of the aforementioned events, The City may lawfully and immediately or at any time thereafter, without demand and/or notice, enter into and upon the facility or any part thereof and expel The Company and terminate this .Agreement. 21, NOTICE Notices lrpm The C .ty to The Company shall be deemed duly served if mailed by recistered or Qertified mail, postacje pre -.paid to The Company at 444 13ri:cliel.l. Avenue, -10- i666 tab Piotida 33.3 , attehtioft. Murray tf . bubhin., l thera . ebohscl, aria Woticcjs frog Tho Cote tt y to The. City sham: be deorncd duly served if rnailccl by rcgistcrec or• •,: �ostac c pro -paid to the City hanager, City ce�rtificcl rttaii �•�. � J p � � � L� Of 330708 C�liaiiti tlor da 33 .33 or tb such other respectiVe persons ' or addresses as the parties may • hereinafter• designate to each ti othet, by noco•'givet in the foregoing Mahhote. ftom time. to time 22. `IME.. t5 _QF'_ r 1 ESSCtCE Time for the occurande or performance of each and every event herein shall be of the essence unless otherwise indicated 23, TAXES The parties agree that the management and operation of the Dinner Xey Marina facility and those operations convenient or necessary therefor, are public purposes and, therefore, no ad valorem taxes should be assessed by the Dade County Tait 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 concessionaires, -or upon which, concessionaires are situated, in the performance of any concession agreement hereunder, the parties agree that at the request of and at the expense of any such concessionaires, 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 concessionaires, 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 costa and expenses of such defense as may be incurred by the parties or either of them includincj court costs and reasonable attorneys' fees incurred by the parties or either of them in such defense, and provided further that the said pro;)e'rty 1. other to contest either 'before or any. ottrt.?Ssloh1ire £eUe§tine + udh F1 do►1t o5't bf c 3t,oSStiteht f fitly and doi^p1et$'ty LndonitltFy and c;Ft'Vc .the part -tog jointly -attd ieparately harati.eSs front my t7. hd tit 1e11t11S) +.than.? dt, rit i tldeiitedness reSultinq ftofil the ootidudt of sudh r1(feh8e acid ciotlt€'st•in the event the sat'rte is•tlot 'sttc c'.es:; tail.. Ali conoO5s1on aor eettlonts r`n tred into hest We.en -Thy:' t `c)Itlpany and its t'ondessic)tt.air'is sh.i`► 1. tht-oucth aoi)tor)riate lc!t;citiaoe 3 lcci•poi^-lte 1 !e trills ,ttltl .;ondition:-, of tuts do- naYil B. 11ssi .;smet;is aita n:sL the mar : n;i proper' /ei: taxes (1.`e aysess.Ki pLer,;, mooriniS at'd an In the •Tai.nst the lands ur on :,hick docks, •(ner prnoert:.tes ftevotc=: to tnati:na ui;e And upon ;shioi' the m:,rinct is Located AS W, l As proper.t. i es ire located, U:.)On whichthe mai ina rid?:iini:;trative faci liti+�s as well as all i.m►Wroverlonts tax appraiser, the Both parties ngroe thereto, are asscss's,d by the Parties hereby ag re(: as follows: to cooperate fully with each contest find 'defend against said assess1! nt. Said and defense shalt, at the opt -ion of the parties or of them, be conducted at the administrative level, i.e. the tax apprais . r , the tax appraisal adjustment board successor or.gani zo t i on, and before the courts , to such extent and to such Level as The Company ;)r The City determine. 2. The costs and e:pons.es including reasonable attorneys' which aro incurred by tite partios as well as -0i fTtt have accrued and bo'cn paid during iation contesting Said taxes, shr'41 au citing bud get il!; opc'r.t t i nq the COU.YAt_? of be included exponsL!s and be(`oTu' 1:c.:!1omi elr•.1ents 'tC) inq to 'thr makeup or' .a mor'. t:ul Ly rt.i.:rrod to 0 '+ar4',iiiph .he dockage f tilts \q.r. e - 3 If final ;tdjudi°�� Lory actin i.e. thy? : i.nai order h i.gheE,L -has.been ludici t1., tribunal I)4 I:o e which the nrQp>r, .r, assessment. st.ibi'titte<i 1.91° determination, cl im ;tl.Strative resints it: ; determination that such 45sossment i ; t :.,t'fu 1. and that the t..t};‘•c, aro cduie, .:and Such dt t 'TTtj.!#z t for is b:t ed qon red$6ftS rtho° than the omitet°ao of tht :Maniti.iittent Aelrcefelit, then it is -agreed that all . ai•Atop= po 'ty tamo't , county sdhool. beam anti fiunithi Sal shad be in- . 'd iudoa in and !}fade a part. -6f the bpert-ttinci budget a - operata, ih(1•c :tpen c?S which 6e included and made a paft of the • totJl ex ieh n:,. used to cictertnine dockage' rate:; as Set- forth iri ;)a c agraph 1. In +. ,, evuii: . he final adjud iCatory actibh declares t1;, ;:rseS Ic1lt lawfrll argl. the t•ates t-,) be duo and payable, sc, 1 , 1 .! chic tO ti.s t ence of this Management Agreement: then it cf, agrtfed Lnat Lho *mount of said taxes sh.rl:`l be made a pa) L of the op,)uatinq 1 udget and shal. L be deemed operating expenses included in the makeup of the dockage rates as set forth in paragraph 9, unless the effect of such inclusion can:c's dockage rates to exceed the average rates charged for dockage and moorings at other marinas situated on public land loc tted in the Coconut trove area. In such latter event, The Cori any mly 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 The City shall terminate this Management Agr4_ement and r.eintburst.� The Company for expenses incurred in accordance with Paragraph 6 CONSTRUCTION OF NEW FACILITIE"S. 5. The economic effect of such property taxes shall be cot,rruted annually and made a part of each semi. -annual opera- t.inq budget with such tdiustmetits as may be required to conform to rho: terms of this Acireement, 24. LASS SUITS RENT STRIKES Cf a':�c3 in the event a law suit i.3 brought by any 'party r�+1. i n`3t T. Company nni Ver The City, which in substance Z►r- :yes solely due to the sign,.q of this Agreement, then the pear r:ics agree to mutually defend said law suit, If said law :au i L results its a temper iry dr• 15-ay of the projects, this AtJ 1 ,,..,tnent 5 h Ow delay, 11 be extended by the amount oF time caused by If 'fled in the eyc?a)t. that there is 4: tenant strike or a OiMilaf striko et refusal to •lay fent or law stiit Of -any,. t. yp.d i3r iiat r in which rental payments ate placed ih ahy escrow account or fh -ahy court ftjnd,.The Company shall be relieved.of its-obliiatioi to.pay to The City arty atnOttnt ih eXtcess of. the monthly bond•service'recuirement•until tueh -rent strike or. suit is settled.and-all -toms• are released to • and/or obtained by The Company. This provision shall Plot permit a reduction in -the amount of consideration required to•be paid,.but.only a -temporary delay of the required _payment. 25, INSUit13NCE The.Company•shall not commence work Agreement until it has obtained all this section and such insurance has been -approved by The . • City. The Company shall at all times, during the term of this Agreement, maintain in full force and effect the following described insurance covering the property and the operation thereon: (a) Public liability insurance of not less than $1,000,000.00 per occurance for death or bodily injury and not less than $100,000.00 per occurance for property damage. (b) Fire and theft coverage of not less than ninety percent (90%) of replacement value of all improvements. Said insurance shall name The City as an additional insured and shall provide that The City shall be given at least thrity (30) days advance written notice of cancella- tion of said policy or any material modifications thereof. Certificates of insurance shall be filed with the property 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 field aiid mnust be rated at let st A as to Mai agemeht and •Mass• lb as to Finahcia l according Le A M. hestRey 'ftatIn'„, •Guide, latest addition, The Company shall further carry any other iiisliiance reasonably•rec Hired in connection Witch the proposed e.t a nion. 2 G .• ow)1 4 The City .shall' be Soiey responsible for funding the improveMents described herein. The City agrees to provide funds from revenue- bonds in a •suffidient amount not to exceed Five Million ($5, 000, 000.00) bollar's. 27, CONFLICT OF INTEREST No stockholders,' directors or employees of. The Company shall have any interest in. any business Which supplies The • Company with -goods or services Without. advice to and consent • • of the City Manager. It is understood: and agreed -that The • Co:npa:lys attorneys, Dubbin, Schiff, Berkman & Dubbin:are. also stockholders of The Company and that. they -may in addition -to receiving any profits' or dividends declared, be'compensated at -their regular rates as an operating -expense in .connection with' any of The Company's needs or. rights' and obligations. arising out of or --in' connection with the. provisions of this agreement. 28. ATTORNEYS FEES AND COSTS In the event that it is deemed necessary for either party to file a law suit in the appropriate court of law in order to enforce any of the terms and provisions of this. Agreement, then the prevailing party shall be entitled to reasonable attorneys' fees and costs. 29. CAPTIONS The captions contained in this agreement are inserted only as a matter of convenience and for reference and in no way, define, limit or prescribe the scope of this Agreement or the intent of any provision hereof,. 30, ENT -ME AGREEMENT This Agreement contains the entire understanding of the. parties hereto concerning the Subject matter hereof and no modification, release, dinearge or waiver of any of the p `r tis ons hereof shall be of any force and effect Unless ih wtiting acid signed by boih parties, 31, RL}'ttE�SLt1 ATIo►J ►;Y c1`i ' City warrants and represents that it has fullpbtier at d authority to enter into this Al*,reettentt uhdet the Constitution acid taus of the State of Florida and Ordinances and pesolutions of bade County and City f T� .�in►i and that all conditions and ci'_'. , things required by the Constitution and laws of the State of Florida, Dade County and the City of itiatni to happen, exist and be performed precedent to the signing of this Management Agreement have happened, exist and have been performed as so required, 32 NON -ASSIGNABILITY CLAUSE The Company shall not assign this Management Agreement without prior approval of the City Commission. IN WITNESS WHEREOF, the parties have hereunto caused these presents to be executed this day of 197 ATTEST': TT1E CITY OF MIAMI Ralph Ongie, City Clerk Joseph Grassie, City Manager BISCAYNE RECREATION DEVELOPMENT COMPANY Robert M. Trau ott, Paul S. Walker, President Secretary i ii' t r t=Ft r MEM8t1ANt • ►oseph.R, GraSsie City Manager rao Richard 'L r 'osittoen • Assistant City Manage: bxtt; Fitt: tiscay ie Recreation beveiopment Corporation Management Agreement 3:E� :.RrhCE9: t-. irl_o5unt5: Attached is a draft of the Biscayne Recreation beveloptfnent.Corporation Management Agreefllent for Dinner Key, in accordance With the City Commission's directions in July to negotiate said Agreement: The Agreement, in summary, provides for the following: Term A ten year term with semi-annual reviews of operation and maintenance. The Company has 30 days to correct any deficiencies, or the City Commission may terminate the contract. If, at the end of ten years, the Company has received satisfactory ratings throughout the term, they are given a preferential right of renewal for an additional five years. Consideration The Company, upon execution of the Agreement, will receive one cent per foot per day for their management services; any revenue remaining after operating expenses and payment to the Company for their management services will be placed in a construction reserve account which will be used to reduce any bond issued for reconstruction. During construction the Company will continue to receive one cent per day per foot for their management services. Cash flow will be as follows during the construction period: Gross revenues, less operating expenses, less any required payment for interest which is not provided in the bond issue, less an amount equal to one-half of the interest due paid to the City, less the management fee of one cent per foot per day. Any net revenue will be shared on an equal basis between the Management Company and the City. William Hough and Company have indicated that any revenue bond issued for the construction and redevelopment of Dinner Key will require a 1.5 coverage. This means that net revenues after operating expenses must equal one and one-halftimes the debt service schedule. After construction of the marina, the revenues will flow as follows: Gross revenues, less operating expenses, less debt service, less one-half of debt service which is paid. to the City, less a management fee of one cent per foot per day. Any -net- revenues are shared oft - afi equal babe' between the. City - and•tie Company. addition to the ha a bht fee of ofle dett per fo�t- er day, theAgreefent provides that the Company may provide dertail cOhoetsibfls ' it spade provided : by the City. - Coflce ti.ofls Mould in61ude-sueh facilities as a laufldry, a bait'and tadkle.shop and -a. earry.out food and beverage fadility. The Company -would - rent. the space from the City: for an amount equivai'erit to the annual debt serviC"e• and would be entitled to all profit derived Profit the operation of the conC'ession.• Construction Tine Agreement provides that the .Company will pay up to $100 , 000 for preparation -of •design development drawings and necessary .Permitting- for- reConstruction..and redevelopment. The first • $50,000-would be advanced directly.by the-• Company,if .The. -$50,000 is.required, it Would-be advanced_to the -Company from bond proceeds,,and the Company would reimburse the. City- at. $5,606-per year;•plus interest.',The •Company would- select,: subject to -the City Manager's approval, the .design team that would bring the project - to. the point of requiring construction drawings, all -,:design development work and permitting. The City. would issue. the construction contractsr` all designs for redevelopment would-be. subject to the.approval of'the City Manager.: The. Company will -act: as the City's_on-site' supervisor. during -construction. Taxes The Agreement provides that concessions would be subject to ad -valorem taxes. The Agreement provides further that if the facility becomes subject to ad -valorem taxes solely because of the Management Agreement and the ad -valorem taxes would increase the average rate for marina users above the average in the area, then the City could terminate the management agreement by reimbursing the Company for design expenses incurred. Rates The Company will submit to the City Manager on a semi-annual. basis, a proposed operating budget which would be subject to the City Manager's approval. The operating budget is expected to include costs for personnel from the dockmaster down, operating and maintenance supplies. The operating budget will not include corporate costs incurred by Biscayne Recreation. In addition, the operating budget is expected to include an amount equal to 1/35 of the total amount of any bond issue used which will be a depreciation reserve and replacement account. The City's auditors have recently recommended that the City establish depreciation accounts for each of its intergovernmental and enterprise funds. The above contains the highlights of the Management Agreement with Biscayne Recreation Development Corporation. William Hough and Company, who is expected to purchase the revenue bonds in -2- §eph Al (rassie Aft y Manager. aft aftti ht of approRifnately $4 t 5 fniltioh, have beef'i emtef sively .f vo1 )ec - in the•nec otiatiohs for•n ahagef lent edtVidee s if the Loft iies .on finde the general form of tie• Management. Agreefnent , aooep the Ageefrtent' fftuet. be.. reviewed ' by Brown., Wood •y . %table, the�t & ivy, :t ho still ft t thn .at- bona ootinsel for the ieeiianoe of ap ro ifnately fni lion in•reventie .bonds. trot4t f. Wood & tvy mitt mile on the•Manageitent .Agreement and- its- effee't•oh the - tak eketpt etattis of the revenue ' bonds. The.' draft MaYiagement Agreement as outlined Was uubtnitted to •the Marina tlser i s-(''oftlniittee•on the etten nc of Deoefnber 5.1 49, 78 . !rhie Morning t received a Bali front `red troth, Chairman of the User s Committee, requesting that any forta1 aotiorl on the part of the City Cottttttission be deferred until 1anuary 1, Wvhieh Would give the tJser'e-dommittee'adequate time to review the proposed Management Agreement and' provide yoti wi th theif' analysis. • WM W1 • TI1iE AdithhMENT trade acid entered. into Otis -day of - • be ember, 1978 ► by ' and betWeeh the City. of Miami - a MUhicipal. Corporation - of the . State of•t`1otida) hereihafter referred to ae •"The City" and Eiscayne Recreation beveloptnent- Cot pahy, `lorda Corporation, hereinafter.referred to as• "The Company", Wil8REA8r •The City currently._ owns and operates the property and facility commonly .known as the Dinner Key Marina; and• WHEREAS, The City CommiSsion desires to have private • initiative and enterprise reconstruct -and redevelop the Dinner Key Marina site -into a first class operating marina; .and • WHEREAS, The City has advertised for Public Proposals for the lease and operation of the Dinner Key Marina; and WHEREAS, The Company along with several other proposers made public proposals in accordance with the "bidding" documents; and WHEREAS, The Company offered to renovate and design a new marina facility with private capital; and WHEREAS, The City now desires to finance the reconstruct- ion and development of the marina with monies from revenue bonds in order to keep the interest cost of repayment to a minimum in consideration of lower dockage rates for tenants. and in order not to encumber said premises with a long possession contract, and WHEREAS, The City has rejected all proposals for a long-term lease and operation of Dinner hey Marina; and WHEREAS, The City Commission directed the Manager to negotiate a short-term management contact with Biscayne Recreation Development Company; and "-ma 70/0 9 4/ 7, I' • the tbffipany • :s both ,et ireus acid capablte f t nst.t atibh lanagerieht, and managetiheht & operation of tht . facilities at ' sad►arina and , 'ffitftEASi the City. and The Company have heOtiated this • Agreement; (v0� THEftE'OtF, for and •ih eor►sideration of the pteMises and the tiutual covenants hereinafter container] to be obsetved and perfOttted, the parties hereto agree as.follows 1. bFscRIFTION .:0. 12 MI E _ The. parties hereby agree that ark accurate description of the managed premises hereinafter referred to as "The Facility", is shown on ekhibit "A" attached hereto and trade a part hereof. 2s TEP.M The Term of this Agreement shall be' for a period of (10) ten years including the time for permitting .and construction. :This 'Agreement shall commence on the day of ► 1978: The Company shall have a preferential right and option to renew this Agreement upon the same terms and conditions at the end of the initial term for a (5) year period provided as follows: The City shall rate The Company on its operation at least two (2) times per year at six (6) month intervals. The rating shall be based upon the condition of the docks and piles and the maintenance and cleanliness of the grounds and facilities. The Company shall be entitled to its preferential right and option to renew if its ratings have been generally satisfactory for the initial term of this Agreement. Company shall give TheCity to exercise notice of its intent this right at least sixty (60) days prior to the of the Agreement. 3, US>J The Company, as the management agent for The City, shall be the exc .uniVe agent of The City and $hall operate the Adility dut t g ' the tetra of thus Agreefeht. dahsideration•t revided ri paragraph fdUt hetein, the CoMpahy §hall operate the property fcit 'small boat Part, i atiha ah 1• reeteatiohai faCilityi offering cleckagc did ether iriaritla elated services► - for': the - use of acid b ` the general p b id • Serttices snail include but not be limited- to .he roliowing: bockage and flooring of ' boats. A boat ramp facilityi which shall be open to the • public acid for, which no charge shall be tirade. 'c. Shbwer'arid.restroom facilities-for.use.by those. persons docking and•tnooritig boats. d. closed circuit T.V. security system for the docks:. e. Security.systein-for.moorings. f.• Sailboat, charter boat and commercial boat rentals. g. Coin operated•. -laundry faculitues. h. Maintenance of landscaping, perimeter walkway and. lighting. i. Sale of bait, tackle and ice. j. Sale of marine hardware. k. Sale of take-out food arid- beverages including beer.. 1...Sale of fuel., Launch services for moored -boats. n.• Boat sales and. boat brokerage, provided, however, that a maximum -of -five. percent (50) of the total 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,-which.shall not be. unreasonably withheld. The Company further agrees. that during each• year of • the term -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. it contractor for. purposes of contuc4hg the•annual•Octobor Boat Show, The fees charged bx The Company to Such,dosighated•contractor sha]-1 be an. amount nQ greater:than the total normal dail-y rental rate then in ffeot for each,Of the s..ps. on- said pier muitipl.ted by the number of 4ys of ,aotuai use= As consideration for the efficient tat agement, operation and ttainteharicd of the property throughout the period of this Agreement, the parties cOVetzent as follow Upon execution of this Management Agreement The Company shall pay from gross receipts, as herein defined, its monthly operating expenses; next, The Company shall pay itself lct per foot per day for dock space leased; next, any excess revenues shall be deposited in a construction reserve account which shall be used to reduce the amount of any bonds required for reconstruction and expansion of the marina facility. Upon receipt of all permits necessary for reconstruction and expansion of the marina facility or upon receipt of bond proceeds issued for reconstruction and expansion, whichever comes first, The Company shall first pay from gross receipts its monthly operating expenses next, The Company shall pay to The City a sum equal to 1/12 the annual interest due on the bond proceeds if sufficient funds are not available through bond financing to interest during construction next, The Company shall pay to The City a sum equal to one-half (z) of the monthly payment for'. interest; next, The Company shall pay itself a fee of one cent (1.) per foot per day for dock space leased and ten (10%) percent of gross revenues produced by moorings:' At such time as the average dockage rate exceeds twelve cents (12) per foot per day, The Company shall pay itself an additional one -tenth of one cent (1/10 of 1) per foot per day for each one cent (10 that the average dockage rate All remaining income a joint City/Company exceeds twelve cover. from gross receipts shall be deposited in account and annually shall be divided equally between The Company and The City. Upon completion of marina reconstruction, from gross receipts, as herein defined, The Company shall pay its monthly operating expenses and shall pay to The City one -twelfth (1/12) of the annual debt service requirement for the total amount of the bonds used in construction of the docks, moorings, doo)smaster" s office and ahtiliary facilities•r e cludiicy•dondessionaird spades;. hd$t, .06 tottipanYshall pay to the City a stitii egUa1. to the -half ('Y) of the tinohthiy boiid ser`ktice rec ti refietit of the aforementioned bonds; • • fiett, The Company shall pay to itself -a fee of ohe-dent tit) per foot pot -day -lot dock spade teased• and tett perceiwt (10 %) Of the • dross revenues produced.by Moorings; at Stich time 'as the. average dockage rate eceeds•twelve, cehts (12) per foot. per day, The. Company shall pay itself an additional oho -tenth of one cent -(1/10 of 1)• per foot per•day•for every one cent (14that the. average' dockage rate exceeds twelve cents (12ct) per foot per day. .All-rema±ni'ng income from gross. receipts shall be deposited in a -joint City/Company account and annually shall be diVidecl equally between -The• Company and The.City. Completion'of the faci1ity•shall..be defined •as acceptance. by the City Commission of all contractors' work for renovation and expansion of marina facility asfunded through thecontemplated- revenue bond issue. The Company shall also pay to The City its monthly. debt service •requirement.on any.concession improvements' -for• which bond. funds may be required or used.- In addition The Company shall pay to.'The City •one-half (1/2)-of the monthly debt service requirement' for said concession improvements plus an additional sum on an annual basis equal to 1/35 of the cost 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 (it) per gallon of gasoline sold at the marina. All profits received from any concession or percentage agreement with any concessionaire or any operation which The Company operates in accordance with the terms and provisions of this Agreement shall be retained by The Company.. 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; socialsecurity benefits; legal expenses; audi.ing office expenses; miscellaneous supplies and qu p ieht; utilities and Waite ihsurah!e; rirdihary tmaihthr anee hid repair; and adVert sihc and pro notiafi. ?urthdr •annual dporatit ehpehses shall i dlU e a deprediatioh,' regefVe and replacement aMcut t equal to -1/3 of the tt tai atiobnt of 'tie bond issue used, e cluding condession•space. 8ueh hinds shall be deposited, on a monthly basis, with The City and.`shall be aVailable for extraordinary' repairs.and replacement etpenses.that Will extend the:life-of the facility. Ordinary' repairs necessary for proper maintenance and operatioh'o.f'the facility, shall be the- -responsibility -of- The Company through its annual operating budget1 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 Companyfrom the. operation and'management-of the facility except those revenues attributable to concessions that The Company •provides at the facility. Bond service requirement as.used in this Agreement shall - mean the amount in-any.fiscal year- which.would be -necessary. for The City to .pay the sum of the amount .to be deposited in the. interest account and the amount to be deposited•in the•principal account on -its revenue bonds. if all-bonds'Wereamortized. in. equal. installments over a period of not less than twenty five (25) years. Said sum is presently estimated to be less than $410,000 annually upon completion of the contemplated improvements and the issuance of all bonds anticipated. Monthlybond service requirement twelfth (1/12) of the bond service requirement. The Company shall deliver on or before the fifteenth (15) day of each month, beginning with the second month of this Agreement and continuing each and every month thereafter during the effective period hereof, at the office of the Department of Finance of The City, or at such other place as may be designated hereafter by The City, the aforementioned monthly payments. Along with said payment, The Company shall provide an operating statement in certificate form signed by a duly authorized officer of The Company setting forth in such detail as the. Director of Finance of The City may prescribe, the amounts of gross sales. Within thirty (30) days after each twelve (1Z) month period during the :effectivp term of t is•Agree tent, Tho Company• sha44 •pay tQ `The iby ueh ac cditioiva1. §ufi t, it Afiv4HA§ may.156. 6e6ttar to . 'o 'a0 tht dit i Wi'th itg S0 of. tho pfefit a provides ht r ih for rho pr`ovthus. tweiVe (12) month pet'i6A. tiepartttefit `ih de tf Tht City, or at su tither :piada as -maY tie desi4hate1 hereafter by The City, the afor6M-eht.Sho0 :hthly pa tohts► - Mlohg ' th said payteht•, the 'ofipat1y. shais ptdvide a statetuht ink ertif date formmt sighed bya duly. a thorixed .off der of The t nipary setting forth in st e t detail a; the Director of Vinaftec • The City. Ma y prescrbej • • the amount of• gross sales. Within th' rty -(30) days after caoh tWelve ( ) month period during the offectiVE term of:- 'this!greement,. le Company -shall pay to e City such additional.sUms, l any, as may be necessar. to provide• The' ity with'its fifty:pc cent (50%) of the profi, as..proVided herein for the previous welve (12)• month period, as used herein shall be considered• The term "gross sales synon'mous and interchangable and sha 1 with the term 'gross re include all income co • lected by The Company f the opera ion and management of Di of concessi which are the • n ner revenues defined herei ipts" Key Marina exclusiv esponsibility of The Com: Taxes imposed by law any to collect and pay and are pay le to the taxing authori and any amount rec ived for the collection. be excluded from gro s sales. 5. MANAGEMENT SERVICES This Management Agreement establishes the manager and operator of Company shall have the right to rely person dealing with fully 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 by The Company ereof shall the subject fac The Company as ility, and any The personal property except as provided in this intend that The Company shall be an independent parties hereto Agreement. The contractor, and the employees and agents of The Company shall attain no rights or benefits under the Civil Service or Pen ion Ordinances of. The City, nor any rights generally afforded classified or unclassified employees of The City, nor shall The Company or its employees be entitled to Florida Workmen' $ Compensation benefits as :employees of The C .ty, The Company Shall have the sole control of the manner neaps Of performing this Agreement subject tP The Company and (1) The Cof ahy Will five ailow ahy tiq e or adVO in4 Material to be tied oh the ehLerio1 of any ttruotUre if the faCilityi (ttt) except tof dodkage and tooting) Tho Company Will het lease or sublease any portion of the Marina operation without the prior cohSeht bf the City Manager 'which shall not be unreasonably withheld. (n) The Company will abide by and enforce all rules and regulations now in effect or established by The Company from time to time. Any rule or regulation established by The Company shall require approval of the city Manager which shall not be unreasonably withheld, ) The Company will make every effort to enforce the removal of all vessels from the facility upon issurance of Hurricane Warnings by the National Hurricane Center. The Company shall enforce the rules and regulations in the Dockage Agreement Document as follows: (1) Only vessels in good condition with their own power will be permitted in the berthing area. (2) Berths will be assigned by the dockmaster or his representative and no changes will be made without his permission. (3) The Company will be responsible for keeping (p) the piers clear of all vehicles, small boats, supplies and storage of any items except those that can be stored in the locker that may be supplied with the berth. (4) The Company will limit the number of vessels that can use each berth to one, except that one small boat, may also be berthed, provided it is within the Limits of the berth, and does not project beyond the pilings, (t) The Company limit the repair work that May be done at the docks at defined iP the City of Miami Agreement. (6) The Company will enforce the rules that prohibit the use of charcoal burners, open flame torches and any other open flame producing equipment. (7) The Company shall enforce the ,present rules on the use of T.V. sets, musical instruments, hailers, radios and other on board equipment that may create a nuisance. (8) The Company shall enforce the rule prohibiting the throwing overboard of any objects, such as garbage, trash, human waste, and shall enforce the provisions prohibiting swimming, diving or fishing from the piers. The Company contemplates the installation of radio equipment within the Dockmasters Quarters to provide boaters with ship -to -shore communication.. In addition, The Company will install closed circuit T.V. scanning to provide better security at the docks and their environs. (r) The Company will initate a newsletter, either monthly or biweekly, to keep the Dinner key boater"d abrea"st "of activities;' events, and general information concerning the area. (s) The Company will encourage programs emanating from Dinner Key such as regattas, tours, entertainment. (t) The Company will endeavor to establish a relationship with other marinas in the area with the intent of providing better service for all of the boating public. (u) The Company will endeavor to promote exchange of boat use between the tenants of Pinner Key Marina and marina tenants in other parts of the country and the world, The i ity or The Company Wray) from time to trite ► request ehahges in the scope of serVioes to be performed hereunder. 8Ueh changes whioh are mutually agreed upon between The City and The Company trust be indorporated in written amendments to this Agreement following approval thereof by the City Commission. (Additional serVides to be provided by The Company are included in other portions of this Agreement.) 6. CONSTRUCTION OF NEW FACILITIES The parties hereto agree that The City and The Company shall use their best efforts to expand binner fey Marina to provide for'approaimately 550 slips, 200 moorings and support. facilities for the marina, including but not limited to dockmaster's offices, laundry services and restrooms storage space for maintenance equipment, mail areas, bait & tackle carry -out food facilities, sail boat rental areas, transient facilities and commercial boat facilities and such other facilities as The City deems appropriate. The parties agree to provide the maximum number of slips consistent with the maintenance of a sound environment and subject to approval of all regulatory agencies. It is anticipated that The City shall issue revenue bonds of approximately $4,500,000 to provide financing for the marina improvement and expansion. The parties hereto mutually agree that The Company shall select the design engineering team, subject to approval of the City Manager which shall not be unreasonably withheld. Said team shall have overall responsibility for bringing the project to contract. } i t rifig the pr_ at r cif enciihe' Ling tiafia ai A, t;pecifidati'ohti ' he Company Wiii.•determine the. Eippropriztte ayoUt, support tystem0, anai1iary•t ses , and design and dOhdtrUet oh; 'Criteri1,, subject to apiroval:.by the City Manager the City shaii issue aii ebh'struction`contracts for the facility.. 'the Cottipahy' shad provide On -'site oversight. and tnanagettent of the project and. shall notify The City of any problems -that:..: yx arise during constructibh that,will'offeet the bperatioh, ttianagement and maintenance of the tsarina. The Company agrees to pay'a maxirtuln of $100000.00 for preliminary engineering and permitting of the marina. preliminary engineering shall •not include. working - drawings and permitting shall not include the cost of City of Miatrii permits. Attorney's fees,• engineering -and consultants fees • and all, other costs and e}:penses shall be included in the permitting process.. In the event that the preliminary. engineering and permitting costs in excess. of $50,000.00, The City shall advance any sum above $50,000.00 and The Company shall reimburse•The•City at the rate of $5,000.00 per,year,-plus interest equal to the revenue bond interest. - rate .until the sum advanced (but not in excess -.of $50,000.00). is paid. 7. CUSTODIAL SERVICE -- The Company; shall. furnish all maintenance:supplies for housekeeping -and• shall. provide all custodial -and janitorial • services required to maintain the property in sanitary and presentable condition. 8. CITY'S RIGHT TO EXAMINE PROPERTY The Company shall make available for inspection by City 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. the Cc ,pang than have the tight to set dodk igo rdtts and tates for the Use t,f 3thct fadi1ities and set -Vide§ tubjeot to the approval of the City Mattacjet, which shalt t;ot be unreasonably Withheld. In setting dockage rotes, the following Costs, eMiensed and economic factors shall be donsideted and included mainly: 44 iY ... YA, .. 47c,i.... 1...4 a 1 Y•.. ,4y86,-i4•44%.41 toad debts service requirements, fifty percent ( 0 n j coverage charges, and operating expenses, all as set forthin paragraph 4 of this Agreement. Dockage rates shall be generally consistent with those charged at other marinas of comparable quality situated on public lands in the bade County area. In addition to the dockage rate, The Company shall be permitted to require vessel owners to pay for utility service which is separately metered. 10. CONFORMITY TO THE LAW The Company covenants to comply with all laws, ordinances, regulations and orders of Federal, State, County and Municipal authorities pertaining to the property and operation thereon. The Company further covenants and agrees that there will be no discrimination as to race, color, creed, sex or national origin in the use of the property or in the employment of its personnel. 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. NATER 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 Kay Park area, The Company agrees to permit The City 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 Agreement, Any costs in adjusting the site uSe to accomodate Paid system P all be born by The City or jts franchisee, as the case may be, .i.i:Y .i lh the tVeht The City docides to proVido t graft a frahohise for Water ttrn Transportation to and from the t�innef i:ey area to Other locations in the City , the Company agrees to provide free embarking and.disembarking �a�ilit.es for said Water�Born Transportations tiny posts in.-adjust1ng the -site -use to accornodate said system shall' be born by The •City or.its franchisee, as the case .may;.be. Lodation of said facilities as described above. -shall - mutually agreed•Upon x 13. pURRIG \NE D E�1E tCENCY hall, during any emergency such as hurricane, The City 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. 14. INVENTORY All fixtures, furnishings, furniture, and equipment, if any, in or upon the facility and their condition will be inventoried 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 fixtures, etc. attached to docks and buildings to be demolished, and saidproperty shall be deemed in its sole custody and care. In 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 accepted, during the term of this Agreement. 15, OWNERSi-IIP OR IMPROVEMENTS All improvements, fixtures and equipment constructed or installed at the facility or purchased with City funds shall be Awned by The City, The Company shall have title to all personal property purchased with Company funds which were not included in the annual operating budget, Upon expiration or termination of this Agreement, title to the property, all permine t improvementp, fixtures and equipment purchased As hall be peacefully tU dhdettd and de .iVdted to The City. Title to a11 compahy equip teht tha i fe taih vested With The Cohpahy and The Company shall have the right to tefnoVe the same front the premises. 16. bAMAdE ot?_n ,Osg Prig CPMPA W' 8... ROPE t' t The Cottmpany asSuMes all tisk of daMagc or loss to its property for any cause whatsoever, which shall inolude, but ..• .:.... s....it+i.iai^r"..a f“*P...it..i.ra.t:Y;til4e'fa riot be limited to, any damage Or loss that may occur to merchandise, 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 of the facilities or any persons whomsoever. 17. IESTRUCTION 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 untenable, the parties agree to use the insurance proceeds to rebuild the facility. Interest on insurance proceeds shall be used to pay the bond service requirement to the maximum extent possible. 18. INDEMNIFICATION The Company covenants and agrees that it shall indemnify and save harmless The. City from and against any and all claims, suits, actions, damages or other causes of action. arising during the term of this Agreement for any personal injury, loss of life or damage to property sustained in or about the property, by reason of, or'as a result of The Company's management thereof, and from and against any orders, judgments or decrees, which may be entered thereon, and from and against all costs, attorney's fees, expenses and 1iabilitieS incurred in and about the defence of any such claim and the investigation thereof; provided however, that before The Company shall become liable for Said cost, The Company shall- be given notice in writing that the same arc about to be incurred at d shall have the option itsdlf to :Make. -the hecettary 'ihVestigatiohs and enplc5Y einhsel.. 'of the Ohpahylt,oWti seteetion for the necessary defense bl any olaitt�. The Pity, Tidy$ At -its option, retain iti bWh tbUhte at its - sole tOtt asd ex pense in addition tt the prOVisiohs-. as hereihaboVe set forth 19. )\bVi..tt1lst,► G. " i... �•a....nis.;i >i..r��y+a:��ica.as ;-�.� 01.101.mwecahlim The Company agrees to undertake an aggress:Lve adVertisin 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 bepartment and other Departments, assist The Company in promoting the public use and enhancement of the marina. rurther, The Company shall undertake, with the City Parks and Recreation Department, to erect appropriate signs designed to assist and direct the public to the marina and its services. The Company agrees to work with area merchants and businesses 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 to perform or observe any of the terms, provisions, conditions and covenants. herein contained, for a period of thirty (30) days after receipt 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 fail within thirty (30) days period to commence and thereafter proceed diligently to cure such default, or if The Company shall be declared bankrupt according to law, then and in any of the aforementioned events, The City may lawfully and immediately or at any time thereafter, without demand and/or enter into and upon the facility or any part thereof notice, and expel The Company and terminate this Agreement. 21. NOTICES Notices from The City to The Company shall be deemed duly 5er=ver if mailed by registered or certified mail, postage pre -paid to 'he. Company at 444 #3r o%el1 1%venue, to 1 iiite 1 , Mi t i, Flor da 3l' 1., AttcntibM Matta 13ubbih ketiera Coutiset -, acid tblebs ftom `fie Company to th6 City shall be deeihed CU1y Scrvcd it mailed by tec isLecd off' certified mail. bstacje pfb-paid to the CiLy Ma iac e ` City. of Miairii ':0: Ion: 33076 Miami, F`ior da 3 13 ;` or to srich othet respective.persons zr.addresses at the parties may hereinafter designate to each oLhet, by.,ricLicc, giVehi.in.,the,,,..q,,. ,„0.0 „ foregoing manner,, from time to time. 22, TII4E_ IS___0 ' 'PIE ESSENCE Time for the occurance or performance of each and every •event herein shall be of -the• essence unless otherwise indicated► 2 3 . TAXES -The parties agree that the management and operation of those operations convenient the Dinner Key Marina facility and or necessary therefor, are public purposes and,- therefore, no ad valorem taxes should be assessed by the Dade County Tax Appraiser. If, however, taxes are assessed 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 concessionaires, or upon which concessionaires by said are situated, in the performance of any concession agreement hereunder the parties agree that at the request of and at the expense of any such concessionaires, 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 concessionaires, provided further, however, that at all times the parties hive 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 posts and reasonable attorneysfees incurred by the parties or either. of them in such defense., and provided further that the said o icessioiiAires t cgUestincj such a ebh,tst of attdttilieht wily atic e6mplbteiy ittdet'itiify' and tave 'tht• parties jbit tly hhd scparateiy hattntiss toil'any ah all itt , harges- or ihdehtedhessss rosuilt:ing from the•eohdudt of such defeh o and co rifest. ih•the ovctjt the sattie is not successful.. All concession agreements entered into between The.-COMpanY and its concessionaires than: thtouyh a p ro riate lan 'uc, ,„;,„ ,, wAwo► ineor iotate' the- terms and conditions of this CoVenaht. ti Assessments against the marina property. In the event taxes are assessed aganst the lands 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 with each other to contest and defend against said assessment. Said contest and defense shall, at the option of. The Company or The City be conducted at the administrative level i.e. before the tax appraiser, the tax appraisement adjustment board or any 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 attorneys'. fees which are incurred by the parties as well as such taxes which have accrued and been paid during the course of the litigation contesting said taxes, shall be included in the operating 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 order. of the highest tribunal before which the property assessment issue has been submitted for determination, administrative. or judicial, results in a determination that such assessment lawful and that the taxes are due and such determination it based Upon a ons 'othet than the e ist�ende of this Matage iefit Agreer eht, theft it is agreed that all tt ai property takes p bounty, tchooi board and tnUttidipai than be indttded in and made c pat"t of the operating budget as bperatiftg e ;pettses Whidh shall be ihdluded and trade a part of the total expenses Used to determine dockage rates es set forth In paragraph 9. uww....'.•SyG tAtc:;p#:l'+n;e{Wits«7+funih0^a?W3ioa10tiattlVifitt: 4. In the event the final adjudicatory action deciates the assessment lawful and the taxes to be due and payable, soley due to the existence of this Management Agreement then it is agreed that the amount of said taxes shall be made a part of the operating budget and shall be deemed operating expenses included in the makeup of the dockage rates as set provided; however, that if the effect of such average marinas situated on public land located in the Coconut Grove area. in paragraph 9 inclusion does cause dockage rates to exceed the rates charged for dockage and moorings at any other 5. The economic effect of such property taxes shall be computed annually and made a part of each semi-annual operating' budget with such adjustments as may be required to conform to the terms of this Agreement. 6. In the event said property taxes are declared to be lawful in final adjudicatory action such portions thereof as shall go and belong to The City shall be deducted from The City's share of profits as heroinbefore set forth in paragraph 4, prior to disbursement and shall go and belong instead to The Company, 24. LAW SUITS ^ BVINT $TRIKNS If and in the event a law suit is brought by any party against The Company and/or The City, which in substance a 'iseS cut of the signing of this Agreement, then the parties. a§ree to Mutuallyy defend said 14W suits If said -la suit retutts i i a temporary delay of. the project thit. !greemeht hai:1 be•e tehded by the amount of tite caused by the delays If t-thd -it the. •eVeht that there is a tettnt strikC of a s tililat strike. or refusal to pay rent of law suit of_ arty type or nature it which rental payments are placed.•ifi thy • • escrow account or ih any court fund, The.Compatly shall be ass -relieved of.its-oblit,ation to pay. to The City any Amount-ih • e*cess•of the monthly bond service requirement• until such rent strike- or suit is settled and all sums -are released to p V �. and/or obtained by. 'The Comp any This rovison shall• not; permit a reduction in. the -amount of consideratiot required •to be paid,but only -_a temporary delay of the required payment 25 INSURANCE The Company shall not commence work on this Management Agreement until it has obtained all insurance required under this section and such insurance has been approved by The City. The Company shall at all times, during the term of this Agreement, maintain in full force and effect the following described insurance covering the property and the operation thereon: (a) Public liability insurance of not less than $1,000,000.00 per occurance for death or bodily injury and not less than $100,000.00 per occurance for property damage. (b) Fire and theft coverage of not less than ninety percent (90%) of replacement value of all improvements. Said insurance shall name The City.as an additional insured and shall provide that-The'City shall. be -given at - least thrity (30) days. advance•written notice of cancellation of said peli.ey or any .material mocazficatons thereof. •Certa.ficatea of• insurance shall be fired with the - property and insurance manager of: the City of Miami. The insurance provided for herein shah- be• written company autNrizet to (la business in the State of i'1orda through an agent. autho 'l.xecl to do. business in the State :of - by g2i `ibrida and must be rated at ieatt A as to Matitac, crer t acid eld is 10 as tc$ Pinahcial accordihq to ABM. best Rey tating Chide, latest additidh. The Coipahy shah further carry any other insurance reasonably + u. . � iy required in coniiectirin with the proposed operatiobn• 26. ' O N The City shall be solcy responsible .,£or ste„fundying �the..,;.N,awe:• � improvements described herein. The City a.ree to provide funds from revenue bonds in a sufficient amount not to exceed Five Million ($5, 000, 000. 00) Dollars. 27. CONFLICT OF INTEREST No stockholders, directors or employees of The Company shall have any interest in any business which supplies The Company with goods or services without advice to and consent of the City Manager It is understood and agreed that The Company's attorneys, Dubbin, Schiff, Berkman &'Dubbin, are also stockholders of The Company and that they may in addition to receiving any profits or dividends declared, be compensated at their regular rates as an operating expense in connection with any of The Company's needs or rights and obligations arising out of or in connection with the provisions of this agreement. 28. ATTORNEYS FEES AND COSTS In the event that it is deemed necessary for either party to file a law suit in the appropriate court of law in order to enforce any of the terms and provisions of this Agreement, then the prevailing party shall be entitled to reasonable attorneys' fees and costs. 29. CAPTIONS The captions contained in this agreement are inserted only as a matter of convenience and for reference and in no way define, limit or prescribe the scope of this Agreement or the intent of any provision hereof. 30, ENTIRE AGREL II NT This Agreement contains the entire understanding of the Parties hereto concerning the makject matter hereof and too TMS todifidatiott, felea3el dise Large of WaiVer of ahy cif ftWisibfis hefeof shall be r f ahy force and offeet uhl.+ess iit writing acid sighed by both parties. The City warrants that it has all and complete tight and authority to enter into this Agr'eemetttt acid the protiisidf s of this Agreement comply with all local ordinances. 32 �OV. �1S5I�1�Ai3I�.,l�y , CL�1�J�C The Company shall not assign this Management Agreement without prior approval of the City Commissioner. 33 = 1 EPAfSENTATION tY 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. Resolutions of Dade County and City of Miami and that all conditions 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 Management Agreement have happened, exist and have been performed as so required. i if r.,; +evo :sir