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HomeMy WebLinkAboutExhibitINTERLOCAL DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI AND THE SCHOOL BOARD OF MIAMI-DARE COUNTY, FLORIDA DATED: , 2007 INTERLOCAL DEVELOPMENT AGREEMENT This Interlocal Development Agreement ("Agreement" or "Development Agreement" or "Interlocal Development Agreement") dated this day of 2007 and effective as of the day of 2007 ("Effective Date") , is entered into by and between The School Board of Miami -Dade County, Florida, a body corporate and politic existing under the laws of the State of Florida, its successors and assigns (hereinafter referred to as the "Board" or "School Board"), and the City of Miami, Florida, a Florida municipal corporation created and existing under the laws of the State of Florida, its successors and assigns (hereinafter referred to as the "City"). The School Board and the City are sometimes referred to herein individually as a "Party", and collectively as the "Parties". RECITALS WHEREAS, Section 163.01, Florida Statutes, the "Florida lnterlocal Cooperation Act of 1969," authorizes local government units to enter into agreements for the mutual benefit of governmental units; and WHEREAS, pursuant to Sections 1013.33 and 163.3177, Florida Statutes, it is the policy of the State of Florida to require the coordination of planning between school boards, and local governments to ensure that plans for the construction of public educational facilities are facilitated and coordinated; and WHEREAS, the City has experienced extraordinary growth in student population since its incorporation and anticipates such growth will continue over the next several years as a result of changing demographics and approved development projects within the City's boundaries; and WHEREAS, a public high school of law studies, homeland security, and forensic sciences ("High School") within the City's boundaries will help to address the grades 9-12 educational needs of the City's residents, provide a specialized instruction school for those particular career paths, and help to alleviate overcrowding in other schools presently serving City Board Initials 2 City Initials residents; and WHEREAS, the School Board and the City recognize the benefits that will accrue to students and the community by placing the High School in the same structure with the City's planned public College of Policing ("College") facilities and by sharing certain facilities between the High School and the College; and WHEREAS, the City is the owner of certain real property located at 401 Northwest 3`d Avenue, Miami, Florida ("Adjacent Lot"), and 405 Northwest 3`d Avenue, Miami, Florida ("Miami Police Headquarters"); and WHEREAS, on November 9, 2006, pursuant to Resolution No. 06-0643, the City Commission authorized the use of the Adjacent Lot and the Miami Police Headquarters parcels, being referred to collectively as the "Property", in order to establish a building site for the College; and WHEREAS, a portion of the Property ("Portion of the Property"), as described in Exhibit "A", will be used to house the High School and College; and WHEREAS, Section 166.021, Florida Statutes, authorizes the City to exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, Section 1013.16, Florida Statutes, governs the specific term length for the lease by the School Board from the City of certain portions of the Facility for the High School; and WHEREAS, the City Commission, pursuant to City Resolution No. adopted , 2007 has agreed to allow use of the Portion of Property for educational purposes associated with the High School and has authorized the City Manager to negotiate and to execute an Interlocal Development Agreement with the School Board regarding the financing, design, construction, use, operation, and maintenance of the College and High School on the Property; and WHEREAS, the School Board, pursuant to agenda item- F-3, at its September 5, 2007 Board Initials 3 City Initials meeting likewise authorized the Superintendent to negotiate and to execute an Interlocal Development Agreement and a Lease and Operating Agreement ("Lease" or " Lease and Operating Agreement") with the City regarding the financing, design, construction, use and maintenance of the College and High School on the Portion of Property; and WHEREAS, the Parties to this Interlocal Development Agreement have mutually expressed a desire to enter into this Agreement to provide a framework for the financing, design and construction of the College and High School; and WHEREAS, the School Board and the City have determined that it is necessary and appropriate to enter into this Agreement to clarify various obligations between the School Board and the City related to financing, design and construction of the College and High School on the Property; and WHEREAS, the School Board and the City have determined that it is in the best interest of the Parties that the School Board award and execute a Contract for Construction ("Contract for Construction") of the Facility subject to the terms and conditions set forth in this Agreement; and WHEREAS, the School Board and the City have determined that it is in the best interest of the Parties that the City be responsible for the management of the construction of the Facility; and WHEREAS, the School Board will assign its rights, responsibilities and obligations under its Contract for Construction of the Facility to the City, and the City will accept and perform all of these in accordance with the requirements of the Contract for Construction; and WHEREAS, the School Board and the City have determined that it is in the best interest of the Parties that the City be responsible for the design of the Facility subject to the terms and conditions set forth in this Agreement; and WHEREAS, the School Board and the City have determined that it is necessary and appropriate to enter into the Lease and Operating Agreement to clarify various obligations between the School Board and the City related to financing, uses, operations and maintenance of Board Initials 4 City Initials the College and High School on the Property, and the terms of the Lease and Operating Agreement shall be in accordance with the attached Interlocal Operating Agreement Term Sheet, attached hereto as Exhibit "B", which Lease and Operating Agreement shall be presented to the City Commission for its approval prior to execution. NOW, THEREFORE, in consideration of the terms and conditions, promises and covenants hereinafter set forth, the Parties agree as follows: Section 1. Definitions. For the purposes of this Agreement, the following words shall have the meanings attributed to them in this Section: "Board" has the meaning ascribed to it in the opening paragraph of this Development Agreement as well as the Board's successors and/or assigns. "Board's Development Percentage Share" means the Board's percentage share of design and construction expenses related to the development and construction of the Facility, which shall be equal to forty-one percent (41 %) of the Total Project Cost which has been determined based on an approximate percentage of the total Facility square footage determined during design development. The City acknowledges and agrees that the Board's portion of Total Project Cost, net of any costs associated with the equipment for the firing range, and except as provided in Sections 10, 11 and 28 herein, shall not exceed $14,300,000.00. "Board's Project Manager" means the Board's representative in all matters dealing with the design and construction of the Building. The Board's Project Manager shall be available at all times during normal business hours. "Building" or "Facility" or "Law Enforcement Training Facility" shall mean the structure containing approximately 112,316 square feet of enclosed program areas to be designed and constructed upon the Property to be commonly referred to as the Law Enforcement Training Facility that shall contain the College and High School as depicted in the Conceptual Site Plan. "City" has the meaning ascribed to it in the opening paragraph of this Development Agreement as well as City's successors and/or assigns. "City's Development Percentage Share" means the City's percentage share of design and construction expenses related to the development and construction of the Facility, which shall be equal to fifty-nine percent (59%) of the Total Project Cost which has been determined based on an approximate percentage of the total Facility square footage determined during design Board Initials 5 City Initials development. "Conceptual Site Plan" means the Conceptual Site Plan attached as Exhibit "C". "Construction Documents" means the final working drawings and specifications prepared by the Project Architect/Engineer, which shall include, without limitation, the following information: definitive architectural and landscape architectural drawings; definitive foundation and structural drawings; definitive electrical and mechanical drawings; and plans for all lighting facilities affecting the exterior appearance of the Facility. "Contract for Construction" shall mean the agreement entered into between the Project Construction Manager and the School Board which will be amended, and certain of its rights and responsibilities will be assigned to the City for construction of the Project. "Days" as used in this Agreement shall mean calendar days, unless otherwise specified. "Due Diligence Investigations" has the meaning ascribed to it in Section 28. "Emergency Circumstances" has the meaning ascribed to it in Section 12.1. "Execution Date" means the date this Agreement is fully executed by the Parties. "Law Enforcement Training Facility" shall have the meaning ascribed to it under the definition of "Building". "Lease" or "Lease and Operating Agreement" shall have the meaning ascribed to it in Section 13. "Lease Term Sheet" means the basic lease terms attached to the Interlocal Development Agreement as Exhibit "B", containing the key basic terms that will be included in the final Lease and Operating Agreement . "Legal Requirements" or "Applicable Law" means applicable Federal, State and local laws, Florida Statutes, codes, School Board Rules, City and Miami -Dade County ordinances, orders, judgments, decrees and injunctions from courts having jurisdiction over the Property, rules, and requirements of Federal, State and local boards and agencies with jurisdiction over the Property, now existing or hereafter enacted, adopted, foreseen and unforeseen, ordinary and extraordinary, which may be applicable to the Property or any part of it. "Notice to Proceed" shall have the meaning ascribed to it in accordance with the Contract for Construction. "Party" and/or "Parties" means City and/or Board. "Person" means any natural person, trust, firm, partnership, corporation, joint venture, association, or any other legal or business entity investment enterprise. "Personal Property" means all property owned and used by Board or the City, as the case may be, in connection with and located within the Building, subject to rights of any secured party Board Initials 6 City Initials or title retention agreement of a third party. "Project" means Law Enforcement Training Facility, designed and constructed in accordance with the Conceptual Site Plan and Construction Documents, with the cost of construction estimated at Thirty -Seven Million Four -Hundred Seventy Thousand Dollars ($37,470,000). "Project Architect/Engineer" means Spillis Candela DMJM, the firm responsible for the development of the Construction Documents. "Project Construction Manager" means Pirtle Construction, Inc., the firm responsible for the construction of the Facility in accordance with the Contract for Construction, or such other firm as mutually agreed to by the Parties. "Portion of Property" means the approximately 1.4 acre parcel of real property located within the City of Miami, Florida, on which the Law Enforcement Training Facility will be constructed, which is legally described in Exhibit "A" of this Agreement, together with all appurtenant rights belonging and all buildings and improvements now or hereafter located on or under such land including, without limitation, the Law Enforcement Training Facility. "Section"; "subsection", "paragraph", "subparagraph", "clause", or "sub clause" followed by a number or letter means the section, subsection, paragraph, subparagraph, clause or sub clause of this Interlocal Development Agreement so designated, unless otherwise indicated. "Specialty High School" or "High School" or "School" shall mean the approximately 45,400 square foot, 500 student station high school to be operated by the Board as a School of Law Studies, Homeland Security and Forensic Sciences. The actual square footage of the Specialty High School shall be calculated after completion of construction by the Project Architect/Engineer. The Specialty High School shall include all lobby space, hallways, restrooms, vertical penetrations for mechanical equipment, and areas occupied by utilities, stairs and elevators on those floor(s) where the Specialty High School is the only user. "Substantial Completion" as used herein shall have the meaning ascribed to it in the Contract for Construction. "Term" has the meaning ascribed to it in Section 7. "Total Project Cost" as used in this Interlocal Development Agreement shall be defined as all costs, of any type or nature, incurred by either Party in connection with the design and construction of the Facility, including contractors, design professionals, and consultants. These costs shall include, but are not necessarily limited to, all costs related to Programming (e.g. geotechnical, survey, printing and advertising), CM at -Risk Pre -construction services, Design Services (inclusive of any change orders or additional services mutually agreed to by the Parties), Board Initials 7 City Initials Construction (e.g. all materials, labor and equipment for construction, including but not necessarily limited to all on-site/off-site work, millwork/carpentry, specialties, equipment, built- in furnishings, CCTV system, and door security system), contingency, building code compliance, construction material testing, estimating & scheduling, systems test & balance, photography services, and Furniture Fixtures and Equipment (FF&E) that is included as part of the Construction Documents, other than free-standing FF&E within the Facility. Total Project Cost does not include expenditures related to due diligence as outlined in Section 28 or any elective changes to the scope of work as may be requested by either party. Section 2. Incorporation of Exhibits. All exhibits referenced in or attached to this Agreement are incorporated herein as if fully set forth in this Agreement. Section 3. Controlling Provisions. In the event of a conflict between the provisions of this Agreement and the provisions of the Lease and Operating Agreement relating to the design and construction of the Facility, the provisions of this Agreement shall control and shall operate to supersede or amend the conflicting provision or provisions of the Lease. In the event of any conflict between any of the provisions in this Agreement, the following order of precedence shall control: (1) amendments to this Agreement, with those of a later date controlling over those of an earlier date; (2) this Agreement, with the more stringent requirements controlling over the less stringent requirements; (3) the Construction Documents, with those of the later date controlling over those of an earlier date; and (4) the other exhibits to this Agreement. Section 4. Recitals Incorporated. The above recitals are true and correct and incorporated herein. Section 5. Purposes. The purposes of this Agreement are to outline the rights and responsibilities of the School Board and the City with respect to the sharing of costs and to set forth their respective responsibilities in financing the design and construction and in the constructing of the College and High School on the Property. Section 6. Enabling Ordinance and Resolutions. The School Board and City agree to approve and keep in effect such resolutions and ordinances as may be necessary to meet the purposes of this Agreement. Board Initials 8 City Initials Section 7. Term of Agreement. This Agreement shall commence upon the Effective Date after full execution of the Agreement by both Parties and completion of the School Board's Due Diligence activities, as provided in Section 28, and shall terminate effective with the commencement date of the Lease and Operating Agreement, other than for any obligations or requirements of either Party under the terms of the Interlocal Development Agreement dealing with, but not necessarily limited to, close-out of all owner and Project Construction Manager obligations under the Contract for Construction, resolution of any outstanding claims, and resolution of any outstanding financial obligations by the School Board, which shall survive the termination of this Agreement until such obligations have been fully resolved. Other than for default, which default is not cured in conformance with the provisions of Section 29, or as provided in Sections 11 and 28, neither party shall have the ability to cancel this Agreement subsequent to the issuance of a Notice to Proceed to the Project Construction Manager for commencement of construction activities. Section 8. Authority. Each of the Parties represents, covenants, and warrants that it has a valid right and authority to enter into this Agreement. Section 9. City Ownership of Property. The School Board hereby acknowledges that the City is the sole owner in fee simple of the Property and that the City shall continue to be the sole owner in fee simple and shall retain fee simple title of the Property, including all improvements constructed thereon. The City and School Board shall enter into the Lease and Operating Agreement for the Portion of Property where the Facility will be constructed. Section 10. Desi2n Costs and Funding. The City has contracted with the Project Architect/Engineer for the design of the Facility, which work shall be completed in final form and submitted to the City's Building Department for plan review and permitting. As a condition to entering into this Agreement, the Parties acknowledge that School Board staff participated in the design development process for the Facility and received the design plans and Construction Documents for review and approval, prior to issuance of the construction permit. However, review and approval of the Construction Documents by the Board shall not relieve the Project Architect/Engineer from the responsibility of complying with all applicable codes, rules and regulations dealing with the design of a public educational facility. The City further acknowledges that the portion of the Construction Documents depicting the High School must be reviewed and approved by an individual certified in Florida Building Code Compliance for Educational Facilities, prior to issuance of a building permit. Directions to the Project Board Initials 9 City Initials Architect/Engineer shall be given through the City's Department of Capital Improvement Projects ("CIP"). All of the costs of said design shall be paid by the City, and forty-one percent (41 %) of said design costs (in a total amount not to exceed $886,998, including contingency), shall be paid to the City by the School Board as reimbursement by the School Board for the City's upfront payment of the design fees. Although the Parties intend that the contribution by the Board for design costs is not to exceed Eight Hundred and Eighty Six Thousand Nine Hundred and Ninety - Eight Dollars ($886,998), in the event the Board and City mutually agree to design changes that go beyond this amount, the Board and City agree to maintain the allocation of costs on a forty- one percent/fifty-nine percent (41%-59%) basis, provided the Board's portion of the Total Project Cost, net of any costs associated with the equipment for the firing range, does not exceed $14,300,000, except as provided herein and in Section 11. The School Board shall reimburse the City the actual cost incurred for design as of the Effective Date, within thirty (30) days of the Effective Date, less the City's 50% portion of the Phase II Environmental Assessment, as stipulated in Section 28. The balance of design monies, including construction administration services, shall be reimbursed to the City within thirty (30) days of receipt of invoices from the City indicating the School Board's proportionate share of said services. Mutually agreed to design changes that increase the School Board's share of design cost will be reimbursed as provided above for construction administration services. Design changes required due to errors or omissions on the part of the Project Architect/Engineer, shall be the sole responsibility of the City. Notwithstanding the above referenced 41%/59% cost allocation, should the design change be for the sole benefit of one Party, that Party shall be responsible for one hundred percent (100%) of both the increased design costs and any related increased construction costs, which costs shall not be deemed part of the Total Project Cost. Other than as stipulated in Sections 11 and 28, and subject to the provisions of Section 29, should the School Board decide not to proceed with its involvement with the Facility prior to the issuance of a Notice to Proceed to the Project Construction Manager for the commencement of construction activities, this Agreement shall terminate and the School Board shall reimburse the City for one hundred percent (100%) of the cost for the redesign of the Facility, in a total amount not to exceed One Million Dollars ($1,000,000), in order to allow the City to have sole use of the Facility. Other than as stipulated in Section 11, and subject to the provisions of Section 29, should the City decide not to proceed with its involvement with the Facility prior to the issuance of a Notice to Proceed to the Project Construction Manager for the commencement of construction activities, this Agreement shall terminate without payment by the School Board of Board Initials 10 City Initials any fees or penalties whatsoever, including the Board's proportionate share of Building design fees or the cost to redesign the Facility in order to allow the City to have sole use of the Facility. The Parties agree that other than with respect to obtaining any required approvals from other jurisdictional entities for work not located on the Property (e.g. — WASD, DERM, etc), the City's Building Department shall retain and exercise jurisdiction over all plan review and approvals, construction inspection services and other actions respecting construction of the Facility, and these functions shall be included as the City's responsibilities. In this regard, both parties agree to use their best efforts to expedite the permitting and/or review process for those functions or activities under their respective control. However, the Board shall retain the right to inspect the work at all times during normal business hours, and provide its comments/concerns to the City relating to the quality and progress of the work. Section 11. Facility Construction. The City may not materially alter or modify the plans and specification for the High School work, once approved by both Parties, without prior written authorization from the Board's Project Manager. The City shall construct the Facility in conformance with the permitted Construction Documents, and in accordance with all applicable building codes, in order to provide a complete and properly functioning Building. The City acknowledges and agrees that time is of the essence in the construction of the Facility, and it shall make every reasonable effort to assure compliance by the Project Construction Manager of the 546 calendar day construction schedule of the Contract for Construction. The Parties agree that the School Board shall retain responsibility for finalizing all negotiations with the Project Construction Manager to determine a Guaranteed Maximum Price for the construction of the Facility, under the Contract for Construction, and will, if negotiations are successful, contract with the Project Construction Manager for the construction of the Facility. Representatives from CIF shall actively participate in all such negotiations. In the event the Guaranteed Maximum Price exceeds $37,470,000, inclusive of owner's contingency allowance, the Parties shall have the right, but not the obligation, to: (1) value engineer the project so that the Guaranteed Maximum Price is reduced; and/or (2) the City may identify additional funds to cover the increased contract price. In the event the Parties do not agree on a mutually acceptable Guaranteed Maximum Price, and a Contract for Construction is not awarded by December 19, 2007, unless such date is extended by mutual agreement of the Parties, then this Board Initials 1 1 City Initials Agreement shall terminate and the Parties shall each be released thereby from any further obligations hereunder accruing after the effective date of such termination, including the cost to allow the City to have sole use of the Facility, except that the Board shall continue to be required to reimburse the City for its portion of Facility design costs incurred through the date of such termination, which amount shall not exceed $886,998. Said amount shall be reimbursed within sixty (60) days of the date of such termination. Subsequent to the School Board executing the Contract for Construction with the Project Construction Manager, the School Board shall assign, and the City shall accept, certain of the rights, responsibilities and obligations under the Contract for Construction. The City's CIP shall thenceforth administer the Contract for Construction on behalf of the City and the School Board. The Parties agreement to the terms and conditions of said Assignment shall be a condition precedent to the Effective Date of this Interlocal Agreement. Section 12. Facility Construction Costs and Funding. The High School is listed on the Board's Five -Year Educational Facilities Plan adopted pursuant to Section 1013.35, Florida Statutes, currently in effect and will continue to be listed on the Five -Year Educational Facilities Plan through its completion. The Superintendent of the District has included in the School Board's Fiscal Year 2007-2008 Capital Budget, sufficient funding for the financing of the Board's Development Percentage Share, from legally available funds including, without limitation, proceeds of its non -voted local option capital outlay millage levied pursuant to Section 101 ] .71 Florida Statutes. The City represents and warrants that it has set aside at least $19,697,002 from its $50,969,205 City of Miami, Florida Limited Ad Valorem Tax Bonds, Series 2007B (Homeland Defense/Neighborhood Capital Improvement Projects) (the "Series 2007B Bonds"), issued by the City on July 10, 2007 in order to fully fund its obligations under this Agreement. The City may substitute other funding sources as may become available. The City recognizes that the Board is relying on this representation. Both Parties shall deposit their portion of construction moneys into an escrow deposit fund pursuant to an escrow agreement ("Escrow Agreement") between the parties and a designated escrow agent agreed to by both parties ("Escrow Agent"). All terms and conditions for deposit of the escrow funds and use of the escrow funds for payment of the Project Construction Manager shall be as more specifically outlined in the Escrow Agreement. Agreement by the Parties to the form and substance of the Escrow Agreement is a condition precedent to the Effective Date of this Interlocal Agreement. Board Initials 12 City Initials Section 12.1 Change Orders. In the event changes to the work are determined by the City to be necessary in the ordinary course of the construction project due to field conditions or due to changes required by the City's Building Department or other jurisdictional entities, including non -monetary field directives or monetary adjustments within each party's approved contingency amounts (collectively "Change Items"), the City shall submit such Change Item request to the Board's Project Manager in writing for his approval, which written approval shall not be unreasonably withheld or delayed. In the event the City does not receive a written response from the Board's Project Manager within three (3) business days of his receipt of the Change Item request, said Change Item shall be deemed approved. Any response from the Board's Project Manager not approving a Change Item request shall include the reasons for not approving same so the City may attempt to address the reasons given. The City's total approved Change Item allocation will not exceed the total amount approved by the City Commission for the City's share of the construction costs. In the event changes to the work are determined by the City to be necessary or required, and requires the use of funds in excess of the parties approved construction amounts, or changes in Project scheduling and completion dates ("Change Order"), the City shall submit such Change Order request to the Board's Project Manager for presentation to the Board for its review and approval as soon as practicable. Notwithstanding the above, the City may proceed with a change in work in the event the City determines that circumstances require immediate action in an effort to protect life, safety or property, or due to field conditions requiring immediate action ("Emergency Circumstances"). If such Emergency Circumstances occur, the City shall provide the Board's Project Manager with a Change Item or Change Order request, as applicable, within twenty-four (24) hours of the action taken by the City to address the Emergency Circumstances. The Board's Project Manager shall review the Change Item and/or Change Order request and respond within the time frames set forth above. In the event of a dispute between the parties regarding any Change Item or Change Order request, the City may, at its risk, proceed with the respective change to the work, and upon request of either Party, the City and Board, through their respective designees, shall resolve any outstanding issues dealing with the work and/or its associated costs, in accordance with the process outlined in Section 29. Board Initials 13 City Initials The Board's Project Manager shall be notified of and included in all construction meetings and conferences dealing with the work, and participate fully in the process of determination of Substantial Completion, generation of punch list items and determining final acceptance of the High School portion of the Facility. The City covenants and agrees that final payment will not be made to the Project Construction Manager and final acceptance of the Facility given, until the Board's Project Manager concurs with same. All issues relating to design that occur during construction shall be managed by City staff, in coordination with School Board staff. The School Board may request the City to execute a Change Order for elective changes to the scope of work should the Board agree to assume the full cost of such Change Order, in which case the Board shall pay the Change Order amount in the manner provided in Section 12 of this Agreement. The City may execute a Change Orders for elective changes to the scope of work, as well as Change Orders necessitated by the City's failure to construct (or cause construction of) the Project substantially in accordance with the Construction Documents, with the City to assume the full cost of such Change Order. Unless otherwise agreed to by the parties, Change Orders initiated by either party for elective changes shall not be paid from the contingency funds. Section 12.2 Completion of Project. Upon Substantial Completion of the Project, the City and Board, with the assistance of the Project Construction Manager, shall each provide a "punch list" (collectively, the "punch list") identifying the corrective work to be completed. Within thirty (30) days after delivery of each punch list, the City shall cause the Project Construction Manager to commence correction of punch list items and diligently pursue such work to completion. Section 12.3 Interior Improvements and Office Furnishings. It is expressly understood that the provisions of this Agreement pertaining to construction and funding obligations are limited to the Project as defined and as specifically set forth in the Construction Documents. The Board and the City shall each be responsible for the design, layout, cost, provision, delivery and/or construction of interior improvements, FF&E that is not contained in the Construction Documents, and installation of any free standing FF&E and any other personal property not a part of the Construction Documents for use respectively by the Board or the City exclusively (the "Interior Improvements"), as applicable. The Board shall be permitted to enter the Property prior to Substantial Completion to arrange for the performance of its Interior Improvements with the prior written approval of the City, provided that the Board's contractors Board Initials 14 City Initials constructing Interior Improvements shall do so in such a manner as to maintain harmonious labor relations so as not to interfere with or delay the construction of the Project. All Interior Improvements to be constructed and installed by the Board shall be reviewed by the City to ensure that they do not negatively impact the weight bearing capacity of the floor, or the building's electrical/air conditioning consumption or otherwise create an operational cost impact that has not already been contemplated in the Construction Documents. In the event the City determines that the Board's Interior Improvements will create such a negative impact, not otherwise contemplated in the Construction Documents, then the City shall be deemed reasonable in disapproving such Interior Improvement unless the Board assumes the cost of such changes required to the Facility to accommodate the Interior Improvement negative impact and/or the additional operational cost impact caused by the installation of such Interior Improvement. Section 13. Lease and Operating Agreement. The School Board and the City shall enter into the Lease and Operating Agreement for the lease and joint use of the Facility; said Lease to commence concurrent with the termination of this Interlocal Development Agreement. Terms of the Lease shall be as per the attached Interlocal Operating Agreement Term Sheet (Exhibit "B"). Section 13.1 Capital Expenditures. Intentionally deleted. Section 14. Permitted Uses. The School Board shall utilize the High School and any other spaces within the Facility designated for joint use between the School Board and the City for the sole purpose of a specialized instruction public high school, grades 9-12, for law studies, homeland security, and forensic sciences. The City shall utilize the College and any other spaces within the Facility designated for joint use between the School Board and the City for the sole purpose of a law enforcement training facility. Any other use by the School Board or by the City shall be subject to conditions set forth in the Lease The City and the School Board agree that the Lease shall stipulate the common and joint use areas within the Facility and the scheduling and other details of said common and joint use. The City and the School Board further agree that the Lease shall stipulate any Police Priority Use areas within or outside of the Facility for emergencies or other City contingencies and the scheduling and other details of such Police Priority Use areas shall be set forth in the Lease. Board Initials 15 City Initials Section 15. Design and Construction Expenses Payment Procedures The Parties will finance design and construction expenses at the percentages noted in Section 1 in the manner set forth below. The City shall pay expenses relating to the design of the Facility as invoiced by the Project Architect/Engineer at the time they are due. A final accounting of all invoices shall be provided to the Board at the completion of the permitting process. The City shall provide to the School Board copies of invoices from the Project Architect/Engineer for construction administration services subsequent to payment of said invoices by the City. Forty-one percent (41%) of the total design fees, not to exceed Eight Hundred and Eighty Six Thousand Nine Hundred and Ninety -Eight Dollars ($886,998), as stipulated above, shall be reimbursed to the City by the Board as stipulated in Section 10 of this Agreement. The School Board shall also be responsible to reimburse the City for its share of mutually agreed upon additional services by the Project Architect/Engineer and those specifically requested by the School Board, as detailed in Section 10 of this Agreement. The City shall pay the Project Construction Manager for work in place accepted by the City's Project Manager on a monthly basis utilizing the funds on deposit with the Escrow Agent. Section 16. Obligations, Rights and Remedies Cumulative. The rights and remedies of the Parties, whether provided by law, in equity or under this Agreement, shall be cumulative. The exercise by any Party of any one or more of such remedies shall not preclude the exercise by default or breach by any other Party. No waiver made by any Party with respect to performance, manner or time of any obligation of any other Party or any condition to its own obligation under this Agreement shall be considered a waiver of any rights of said Party with respect to the particular obligations of any other Party or condition to its own obligation, or a waiver in any respect in regard to any other rights of said Party. No waiver of any breach of any of the covenants or conditions of this Agreement shall be construed to be a waiver of any other breach or to be a waiver of, acquiescence in, or consent to any further or succeeding breach of the same or similar covenant or condition. All waivers and consents of the City or the Board to any act or matter must be in writing and shall apply only with respect to the particular act or matter to which the waiver and/or consent is given and shall not relieve either Party from the obligation, wherever required under this Agreement, to obtain the waiver and/or consent, as applicable, of the City or the Board to any other act or matter. Board Initials 16 City Initials Section 17. Mitigation. The Parties hereby expressly acknowledge and agree that each shall have an affirmative obligation to mitigate their respective damages as a consequence of a default by the other. Section 18. Claims for Federal or State Aid Payable. Should either Party obtain any federal or state assistance, such assistance shall be for the sole use of the Party obtaining such assistance and may not be claimed as a set-off of any costs by the other Party. Section 19. Successors and Assigns. Should either the School Board or the City be dissolved, abolished, or otherwise cease to exist, the successor governmental entities to said entities shall be deemed to be the parties bound by this Agreement. Section 20. Governing Law. This Agreement shall be construed and enforced according to the laws of the State of Florida. Section 21. Severability. If any item or provision of this Agreement is held invalid or unenforceable, the remainder of the Interlocal Agreement shall not be affected and every other term and provision of this Agreement shall be deemed valid and enforceable to the extent permitted by law. Section 22. Notices. Any notices to be given hereunder shall be in writing and shall be deemed to have been given if sent by hand delivery, recognized overnight courier (such as Federal Express), or by certified U.S. mail, with return receipt requested, addressed to the Party for whom it is intended, at the place specified, or as same may be modified from time to time. For the present, the parties designate the following as the respective places to deliver notices: If to the School Board: Copy to: The School Board of Miami -Dade County, Florida Superintendent of Schools 1450 N.E. Second Avenue, Room 912 Miami, FL 33132 The School Board of Miami -Dade County, Florida School Board Attorney 1450 NE 2 Avenue, Suite 400 Miami, Florida 33132 Miami -Dade County Public Schools Facilities Planning Department Administrative Director 1450 NE 2 Avenue, Suite 525 Miami, Florida 33132 Board Initials 17 City Initials If to the City: Copy to: City Manager City of Miami 444 S.W. 2nd Avenue, loth Floor Miami, Florida 33130 Director, Department of Capital Improvements City of Miami 444 S.W. 2nd Avenue, 8th Floor Miami, FL 33130 Chief of Police City of Miami 400 NW 3`d Avenue Miami, FL 33130 City Attorney City of Miami 444 S.W. 2°d Avenue, Suite 945 Miami, Florida 33130 Section 23. Amendments. It is further agreed that no modification, amendment or alteration in the terms or conditions herein shall be effective unless contained in a written document executed by the School Board and the City, or as otherwise authorized by the respective Parties. The City Manager is hereby authorized to enter into non -substantive amendments without the necessity of further City Commission approval. Section 24. Indemnification. The School Board covenants and agrees that it shall indemnify, hold harmless and defend the City, from and against any and all claims, suits, actions, damages or causes of action arising from or in connection with the School Board's use and occupancy of the Property during the term of this Agreement, for any personal injury, loss of life or damage to property sustained in or about the Property, to the extent of the limitations and sovereign immunity provisions included within Section 768.28, Florida Statutes, other than damage or injury resulting from the negligence or improper conduct of City, its agents, representatives or employees, or resulting from the City's failure to perform its obligations under this Agreement. The City covenants and agrees that it shall indemnify, hold harmless and defend the School Board, from and against any and all claims, suits, actions, damages or causes of action arising from or in connection with the City's use and occupancy of the Property during the term of this Agreement, for any personal injury, loss of life or damage to property sustained in or about Board Initials 18 City Initials the Property, to the extent of the limitations and sovereign immunity provisions included within the Section 768.28, Florida Statutes, other than damage or injury resulting from the negligence or improper conduct of the School Board, its agents, representatives or employees, or resulting from the School Board's failure to perform its obligations under this Agreement. Nothing in this Interlocal Agreement is intended to operate as a waiver of the statutory sovereign immunity or the limitations on liability of either Party. Section 25. Insurance Rules and Regulations: Section 25.1 Public Liability Insurance Subject to the provisions and monetary limitations of Section 768.28, Florida Statutes (as may be amended), which limitations shall be applicable regardless of whether such provisions would otherwise apply, and to the extent permitted by law, the School Board and City shall each maintain either a public liability insurance policy or an ongoing self-insurance program for public liability, automobile liability and worker's compensation insurance, and shall provide reasonably satisfactory evidence of such insurance or ongoing self insurance program to the other Party. Section 25.2 Liability for Damage or Injury: City Liability. Subject to the provisions and monetary limitations of Section 768.28, Florida Statutes (as may be amended), which limitations shall be applicable regardless of whether such provisions would otherwise apply, and to the extent permitted by law, the City shall not be liable for any damage or injury which may be sustained by the School Board, or any person using the Property, other than damage or injury resulting from the negligence or improper conduct of City, its agents, representatives or employees, or resulting from the City's failure to perform its obligations under this Agreement. School Board Liability. Subject to the provisions and monetary limitations of Section 768.28, Florida Statutes (as may be amended), which limitations shall be applicable regardless of whether such provisions would otherwise apply, and to the extent permitted by law, the School Board shall not be liable for any damage or injury which may be sustained by the City, or any person using the Property, other than damage or injury resulting from the negligence or improper conduct of the School Board, its agents, representatives or employees, or resulting from the School Board's failure to perform its obligations under this Agreement. Section 25.3 Construction Insurance. Board Initials 19 City Initials Prior to the execution of this Agreement or the commencement of any construction work on the Property, as applicable for the particular types of insurance, the City agrees to require the Project Construction Manager to obtain and maintain at all times during the period from the commencement of construction through Final Completion, as defined in the Contract for Construction, the insurance coverage noted below, except for Builder's Risk insurance which is to remain in effect through Substantial Completion. Copies of the certificate(s) of insurance required for the execution of this Agreement shall be provided to the School Board prior to the commencement of construction. Without limiting the City's right to review and amend its insurance requirements hereunder in a manner consistent with other comparable construction projects, the City agrees to cause to be maintained with respect to the construction of the Project the insurance set forth in Exhibits "D-1" or "D-2" attached hereto and made a part hereof. Section 25.4 Additional Insured. All policies of insurance required by this Section shall indicate as additional insured the Board, the City, and such other entity as may be required thereunder. Notwithstanding any such inclusion, the Parties agree that any losses under such policies shall be payable, and all insurance proceeds recovered thereunder shall be applied and disbursed, in accordance with the provisions of this Section. All insurance policies shall provide that no material change, cancellation or termination shall be effective until at least thirty (30) days after written notice to the additional insured(s). Section 25.5 Insurance Does Not Waive Parties' Obligations. No acceptance or approval of any insurance hereunder shall relieve or release either Party from any liability, duty or obligation under this Agreement. Section 25.6 Notice of Loss. Whenever any part of the Project shall have been damaged or destroyed by fire or other casualty, the City shall promptly cause the appropriate insurance carriers to investigate and assess damages in accordance with the terms of the applicable insurance policies and shall promptly prosecute all valid claims which may have arisen against insurers or others based upon any such damage or destruction. The City shall promptly give the Board written notice of any damage or destruction to the Project. Section 25.7 Builder's Risk Insurance Proceeds. (a) Authorized Payment. Upon commencement of construction, the Project Construction Manager shall maintain, or cause to be maintained, Builder's Risk insurance in the amounts and type set forth in Exhibits "D-1 " or "D-2". Board Initials 20 City Initials All sums payable for loss and damage arising out of the casualties covered by the Builder's Risk insurance policies shall be payable to the City. Said proceeds shall be disbursed pursuant to Subsection (b). (b) Disposition of Insurance Proceeds for Reconstructing. Except as provided herein with respect to disposition of insurance proceeds in the event of termination pursuant to Section 25.10 of this Agreement, all insurance proceeds shall be used, to the extent required, for. the reconstruction, repair or replacement of the Project, so that the Project shall be restored to a condition comparable to the condition prior to the loss or damage (hereinafter referred to as the "Reconstruction Work"). Any insurance proceeds remaining on deposit following the completion of the Reconstruction Work shall remain with the City for deposit in a separate account to be used in connection with reserves and replacements required for the Facility pursuant to the Lease and Operating Agreement. Section 25.8 Determination Regarding Commencement and Completion of Reconstruction. The City will proceed to promptly cause the Project Construction Manager to submit any claim for damage to the insurer in order for the Parties to determine if the Reconstruction Work is practicable in accordance with the criteria set forth in Section 25.10. If the Reconstruction Work is determined to be practicable, Reconstruction Work shall commence no later than one hundred eighty (180) days after receipt of insurance proceeds, subject to Force Majeure. Section 25.9 Waiver of Subrogation Rights. Anything in this Agreement to the contrary notwithstanding, the City and the Board each hereby waive any and all rights of recovery, claim, action, or causes of action against the other, its agents, officers, directors, partners, investors, or employees, for any liability, loss or damage that may occur in, on, about or to the portion of the Property housing the Facility, the Facility, and/or any improvements from time to time existing thereon, or to any portion or portions thereof, or to any personal property brought thereon, by reason of fire, the elements or any other cause(s) which are insured against under the terms of valid and collectible insurance policies carried for the benefit of the Party entitled to make such claim, regardless of cause or origin, including negligence of another Party hereto, its agents, officers, directors, partners, investors, or employees; provided that such waiver does not limit in any way any Party's right to recovery under such insurance policies, and provided further that the insurer pays such claims. The City and the Board shall each obtain Board Initials 21 City Initials waiver of subrogation endorsement as applicable to the excess casualty policy to effect the provisions of this Section. Section 25.10 Option to Terminate. If (a) the insurance proceeds received are insufficient to complete the repairs as determined by the Parties, or (b) the City or the Board are unable to obtain all of the governmental approvals required for the reconstruction of the Building, then, in any of such events, either Party may elect to terminate this Agreement, and the Lease by giving to the non -cancelling Party notice of such election within ninety (90) days after the occurrence of the casualty. If such notice is given, the rights and obligations of the Parties under this Agreement, and the Lease shall cease as of the date of such notice, except for the rights and obligations that are intended to survive the termination of this Agreement. In the event of a termination, the insurance proceeds shall be disbursed as follows: (i) First toward the reduction of the unpaid amounts due to contractors and consultants related to the construction work performed; (ii) Second toward costs for debris removal; and (iii) The balance of the proceeds, if any, shall be paid to the Parties as their respective interests may then appear. Section 26. No Liens. The Parties agree to do all things necessary to prevent the filing of mechanics liens against the Facility, the Property or the interest of the City as owner by reason of any construction, work, labor, services performed, or materials supplied on the respective Party's behalf in relation to the Property. If any lien shall be filed as a result of an action by a Party, the Party so responsible shall cause the same to be vacated of record within ten (10) days after filing and shall provide the other Party with documentation in writing of such lien vacation. Section 27. Sale or Transfer of Interest in this Agreement: The School Board shall not sell, assign, encumber or otherwise transfer its interests hereunder during the term of this Agreement without the prior written consent and approval of the City Commission, and any assignment without said prior written consent and approval of City Commission shall be void. The City shall not sell, assign, encumber or otherwise transfer its interests hereunder during the term of this Agreement without the prior written consent and approval of the School Board, and any assignment without said prior written consent and approval of the School Board shall be void. Board Initials 22 City Initials Section 28. Due Diligence and Related Termination Provisions. The City hereby acknowledges that the School Board, in compliance with Florida Statutes and Board Rules, shall conduct all required due diligence necessary to operate a public educational facility on the Property. This due diligence includes, but is not necessarily limited to a determination of title issues for the Portion of Property that would prevent the issuance of a Building Permit, an updated Phase I Environmental Assessment, a Phase II Environmental Assessment ("Environmental Assessments"), and compatibility with Miami -Dade County aviation zoning criteria, review of the site by DERM and the South Florida Water Management District, and compliance with all applicable land use criteria. Such due diligence shall be completed as a precondition of this Agreement, but in no event later than forty-five (45) days after receipt from the City of an executed Agreement To Conduct Due Diligence Investigations. The costs of the Phase II Environmental Assessment shall be paid fifty percent/fifty percent (50%/50%) by the Parties. The City's share shall be paid in the form of a credit against the monies due from the School Board for design costs. The Board agrees to provide to the City copies of all reports given to the Board reflecting any adverse environmental conditions within five (5) days of the Board's receipt of same. If as a result of this due diligence review by the School Board, the School Board, in its reasonable and sole discretion, determines that the Property is incompatible for the operation of the High School, and the City is unwilling or unable to remediate those issues precluding the operation of the High School on the Property, either Party shall have the right to terminate this Agreement without payment of any additional fees or penalties whatsoever, including the Board's proportionate share of Building design fees or the cost to allow the City to have sole use of the Facility, by notifying the City in writing of same within thirty (30) days of completing the due diligence. The School Board, its agents, employees and representatives shall have access to the Property at all times with full right to conduct any and all inspections, investigations and tests thereon, including, but not limited to, soil borings and hazardous waste studies, and to make such other examinations with respect thereto as the School Board, its counsel, licensed engineers, surveyors, or other representative may deem reasonably necessary ("Due Diligence Investigations"). Any Due Diligence Investigations other than the Environmental Assessments on the Property by the School Board shall be at the sole cost of the School Board and shall be performed in a manner not to unreasonably interfere with City's ownership or use of the Property. Other than as stipulated below, upon completion of any such Due Diligence Investigations, the Board Initials 23 City Initials School Board shall restore any damage to the Property caused by School Board's Due Diligence Investigations. School Board hereby indemnifies and holds City harmless, to the extent of the limitations of Section 768.28 Florida Statutes from all losses, costs or expenses, including, but not limited to, reasonable attorneys' fees and court costs resulting from School Board's Due Diligence Investigations in connection with the Property. Notwithstanding anything contained herein to the contrary, School Board shall not indemnify or hold City harmless with respect to, and School Board shall.not be required to, remove, remediate, dispose or otherwise deal with any "Hazardous Substance", samplings derived from the Property containing Hazardous Substances which it finds in connection with its Due Diligence Investigations of the Property. Section 29. Default Remedies and Dispute Resolution. An event of default shall be deemed to have occurred by either Party to this Agreement if such Party fails to observe or perform any covenant, condition or agreement of this Agreement, and such failure continues for a period of thirty (30) days after written notice specifying such default and requesting that it be remedied is sent to the defaulting party by the non -defaulting party; provided, however, that if the default is curable but cannot be cured within thirty (30) days, then the defaulting party shall have such additional time as is reasonably needed to cure such default so long as the defaulting party promptly commences and diligently pursues the cure of such default to completion. In the event the default shall continue, then the Parties agree that the City Manager and the Superintendent of Schools, or their designees, shall meet and attempt to cure the Default. If unable to be cured, the non -defaulting party shall be entitled to all remedies available at law or in equity, which may include, but not be limited to, the right to damages and/or specific performance. In a similar fashion, in the event of any dispute, controversy or difference arising between the Parties under this Agreement, including any issues as enumerated in Section 12.1, the parties shall first attempt to resolve the matter between the City's Project Manager and the Board's Project Manager. If unsuccessful, the City Manager and the Superintendent of Schools, or their designees, shall meet in an attempt to resolve the issue. If the issue remains unresolved, one. Party may then place the other in Default, as specified above. Section 30. Force Majeure. A "Force Majeure Event" shall mean an act of God, act of governmental body or military authority, fire, explosion, power failure, flood, storm, hurricane, tornado, sink hole, other natural disasters, epidemic, riot or civil disturbance, war or terrorism, sabotage, insurrection, blockade, or embargo. In the event that either Party is delayed in the performance of any act or obligation pursuant to or required by this Agreement by reason of a Force Majeure Event, the time for required completion of such act or obligation shall be extended Board Initials 24 City Initials by the number of days equal to the total number of days, if any, that such Party is actually delayed by such Force Majeure Event. The Party seeking delay in performance shall give notice to the other Party specifying the anticipated duration of the delay, and if such delay shall extend beyond the duration specified in such notice, additional notice shall be repeated no less than monthly so long as such delay due to a Force Majeure Event continues. Any Party seeking delay in performance due to a Force Majeure Event shall use its best efforts to rectify any condition causing such delay and shall cooperate with the other Party to overcome any delay that has resulted. Section 31. Entire Agreement. This document incorporates and includes all prior negotiations, correspondence, conversations, agreements or understandings applicable to the matters contained herein and the parties agree that there are no commitments, agreements, or understandings concerning the subject matter of this Agreement that are not contained in this document. Accordingly, it is agreed that no deviation from the terms hereof shall be predicated upon any prior representations or agreements whether oral or written. Section 32. Enforcement of Agreement. In the event that either Party is required to enforce this Agreement by court proceedings or otherwise, then the Parties agree that each Party shall be responsible for its own fees, expenses, and costs incurred, including reasonable attorneys' fees, expenses, and costs of trial, alternative dispute resolutions, or appellate proceedings. Section 33. Time of Essence. Time shall be of the essence for each and every provision hereof. Section 34. 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 Agreement or the intent of any provisions thereof. Section 35. Effective Date. This Agreement shall become effective upon the execution by the City and the School Board and other conditions as set forth in the Agreement. Section 36. No Third Party Beneficiary. This Agreement is solely for the benefit of the School Board and the City and no right or cause of action shall accrue upon or by reason, to or for the benefit of any third party not a formal party to this Agreement. Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon any person or corporation other than the School Board and the City any right, remedy, or claim under or by Board Initials 25 City Initials reason of this Agreement or any of the provisions or conditions of this Agreement; and all of the provisions, representations, covenants, and conditions contained in this Agreement shall inure to the sole benefit of and shall be binding upon the School Board and the City, and their respective representatives, successors, and assigns. Section 37. Joint Defense. In the event that the validity of this Agreement is challenged by a third party or Parties unrelated to the Parties through legal proceedings or otherwise, the Parties hereto agree to cooperate with each other in defense of this Agreement, with each such Party to bear its own attorney's fees and costs associated with such defense. Section 38. Venue. This Agreement and the provisions contained herein shall be construed, interpreted, and controlled according to the laws of the State of Florida. Governance and venue for any dispute shall be in Miami -Dade County, Florida. Each party waives any defense, whether asserted by motion or pleading, that the aforementioned courts are an improper or inconvenient venue. Moreover, the parties consent to the personal jurisdiction of the aforementioned courts and irrevocably waive any objections to said jurisdiction. Section 39. Counterparts. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be an original; however, all such counterparts together shall constitute but one and the same instrument. Signature and acknowledgments pages, if any, may be detached from the counterparts and attached to a single copy of this document to physically form one document. Section 40. Project close-out documents. The City shall require the Project Architect/Engineer and Project Construction Manager to provide, and the City and School Board shall each receive, duplicate copies of project close-out documents, including, but not necessarily limited to, "as -built" drawings, operation manuals, building system certificates and warranty information. Section 41. Waiver of Jury Trial. In the event of any litigation between the Parties under this Agreement, the Parties agree to waive a jury trial, and each party shall be responsible for its own attorney's fees and court costs through trials and appellate levels. The provisions of this paragraph shall survive the termination of this Agreement. Section 42. Nondiscrimination. The School Board and City each represent and warrants to the other that it does not and will not engage in discriminatory practices and that there shall be no discrimination in connection with each Party's performance under this Agreement on account of race, color, sex, religion, age, disability, marital status, sexual orientation, or national Board Initials 26 City Initials origin. The Parties further covenant that no otherwise qualified individual shall, solely by reason of his/her race, color, sex, religion, age, disability, marital status, sexual orientation, or national origin, be excluded from participation in, be denied services, or be subject to discrimination under any provision of this Agreement. Section 43. Public Records. The School Board and City each understand that the public shall have access, at all reasonable times, to all documents and information pertaining to this Agreement, subject to the provisions of Chapter 119, Florida Statutes and the specific exemptions thereto, and each agrees to allow access by the public to all documents subject to disclosure under applicable law. Section 44. Award of Agreement. The School Board and City each represent and warrant to the other that it has not employed or retained any person or company employed by the City or Board to solicit or secure this Agreement and that it has not offered to pay, paid or agreed to pay any person any fee, commission, percentage, brokerage fee, finders fee, or gift of any kind contingent upon or in connection with, the award of this Agreement. Section 45. Compliance with Federal, State, and Local Laws. The Parties understand that agreements between school boards and local governments are subject to certain laws and regulations, including laws pertaining to open public meetings, public records, conflicts of interest, procurement procedures, record keeping, etc., and the School Board and the City agree to comply with and to observe all applicable laws, codes and ordinances as they may be amended from time to time. The School Board further agrees to include in all of the School Board's agreements with the Project Construction Manager, contractors and subcontractors for any goods and services related to this Agreement this provision requiring each of them to comply with and observe all applicable federal, state, and local laws rules, regulations, codes and ordinances, as they may be amended from time to time. Section 46. Appropriations Contingency. Both Parties acknowledge that funding for this Agreement is contingent upon the availability of funds and continued authorization of the Parties respective activities, and the Agreement is subject to amendment due to lack of funds, reduction of funds, and/or change in regulations or other laws. This section shall have no effect once the funds have been appropriated by both Parties and placed into the escrow account. Section 47. City Not Liable for Delays. The School Board hereby understands and agrees that in no event shall the City be liable for, or responsible to the School Board, its employees, the Project Construction Manager, any contractor, any consultant, or any subcontractor, or to any other person, firm, or entity for or on account of, any stoppages or Board Initials 27 City Initials delay(s) in work herein provided for, or any damages whatsoever related thereto, because of any injunction or other legal or equitable proceedings or on account of any delay(s) for any cause over which the City has no control. Section 48. Use of Name: The School Board understands and agrees that the City is not engaged in research for advertising, sales promotion, or other publicity purposes. The School Board is allowed, within the scope of normal and customary marketing and promotion of its work, to use the name of the City in promoting and advertising the High School. Subject to the provisions of Section 119, Florida Statutes, the School Board agrees to protect any confidential information provided by the City and will not release information of a specific nature without prior written consent of the City Manager or the City Commission. Section 49. No Conflict of Interest. The Parties hereto agree that they will each comply with respective State, County, local and School Board provisions regarding no Conflict of Interest. Section 50. Survival: All obligations (including but not limited to indemnity and obligations to defend and hold harmless) and rights of any Party arising during or attributable to the period prior to expiration or earlier termination of this Agreement shall survive such expiration or earlier termination. Section 51. Truth -In -Negotiation Certification, Representation and Warranty: The School Board hereby certifies, represents and warrants to City that the Contract for Construction shall comply with the Truth -In -Negotiations provisions of Florida Statutes. Section 52. Authority of the Superintendent: The Superintendent of Schools or his/her designee shall be the party designated by the School Board to grant or deny any and all approvals required by this Agreement dealing with the design and construction of the Facility, and in addition, the Superintendent of Schools or his/her designee shall be the party designated by the School Board to terminate this Agreement in conformance with the provisions of the Agreement. Section 53. Authority of the City Manager. The City Manager or his/her designee shall be the party designated by the City to grant or deny any and all approvals required by this Agreement dealing with the design and construction of the Facility, and in addition, the City Manager or his/her designee shall be the party designated by the City to terminate this Agreement in conformance with the provisions of the Agreement. The Resolution of the City Commission shall, in addition to approving this Agreement, empower the City Manager to modify this Agreement in the event a modification to this Agreement becomes necessary or desirable. Notwithstanding the above, any modification which Board Initials 28 City Initials increases the City's financial obligation shall require City Commission approval. IN WITNESS WHEREOF, the Parties hereto have individually, through their proper officials, made and executed this Agreement on this day of 2007. THE SCHOOL BOARD OF MIAMI-DADE COUNTY, FLORIDA BY: DR. RUDOLPH F. CREW, SUPERINTENDENT APPROVED AS TO FORM AND LEGAL SUFFICIENCY: BY: JULIE ANN RICO, ESQ. SCHOOL BOARD ATTORNEY CITY OF MIAMI, A FLORIDA MUNICIPAL CORPORATION BY: PEDRO G. HERNANDEZ, P.E. CITY MANAGER ATTEST: DATE: PRISCILLA A. THOMPSON CITY CLERK APPROVED AS TO FORM AND APPROVED AS TO INSURANCE CORRECTNESS: REQUIREMENTS: BY: BY: JORGE L. FERNANDEZ. LEEANN BREHM CITY ATTORNEY RISK MANAGEMENT DIRECTOR Board Initials 29 City Initials EXHIBIT A Legal description of the Portion of Property which will be used to house the High School and College (the Facility) Board Initials 30 City Initials EXHIBIT "B" INTERLOCAL OPERATING AGREEMENT TERM SHEET Terms of the Lease and Operating Agreement shall include, but are not limited to, the following: Initial Term Forty (40) years, commencing upon issuance of a Final Certificate of Occupancy ("Commencement Date") for the Facility. Renewal Options Four (4) ten-year options. The Board may exercise this option upon six (6) months prior written notice from the Board to the City, provided the Board is not otherwise in default under the Agreement and provided the Parties come to a mutual agreement regarding any capital expenditures that may be required to continue the useful life of the Facility during the option period(s). Rent $1.00/yr, in the total amount of $40 for the initial lease term, to be paid in advance prior to School Board occupancy of the Facility. Rent during the option periods shall be $1.00/yr which shall be paid in advance, and in full for the entire option period so exercised. School Board Permitted Use The School Board shall utilize the High School and any other spaces within the Facility designated for joint use between the School Board and the City for the sole purpose of a specialized instruction public high school, grades 9-12, for law studies, homeland security, and forensic sciences. City Permitted Use The City shall utilize the College and any other spaces within the Facility designated for joint use between the School Board and the City for the purpose of a law enforcement training facility. Use Areas and Joint Use Facilities The High School portion of the Facility used by the Board, and the College portion of the Facility used by the City, as well as the portion of the Facility used as Joint Use Facilities, are as shown in Exhibit "E", attached hereto. Police Priority Use During times of emergency, the City shall have priority use of all areas of the Facility. In such an event, the Board's obligations under this Agreement, including any cost sharing provisions, shall be reduced proportionately. Joint Use Committee A Joint Use Committee will be established as of the Commencement Date, and shall be made up of one representative each from the School Board and the City. The School Board representative shall be the principal of the School, or his/her designee ("School Administrator"), and the City representative shall be the Chief of Police, or his/her designee. The Joint Use Committee shall be responsible for coordination of all issues impacting the routine operations by the Parties within the Facility, including establishing, monitoring, and modifying the schedule for the Joint Use Board Initials 31 City Initials Facilities ,and shall consider issues related to maintenance, utilities and other shared expenses related to the Joint Use Facilities. City's Building Services City shall make available the following services to the Building, including without limitation the Joint Use Facilities: heating, ventilation and air conditioning during normal school operating hours for the High School and Joint Use Facilities, and normal business hours for the College and common use areas; water and sewage facilities; ■ pest control; • interior and exterior landscaping; • exterior grounds maintenance and cleanup; security as is required for the Building exterior and Joint Use Facilities; electric current for normal use and light; maintenance of life safety equipment; locksmith service; elevator service; garbage removal from the Property. City shall provide after-hours air conditioning services to the High School and Joint Use Facilities upon written request of School Administrator to City (or its designee or agent) given not less than forty-eight (48) hours prior to the date and time School Board requires such service. City's Building Preventive Maintenance and Repairs Other than the Board's maintenance responsibilities within the High School, City shall provide all maintenance, including preventive maintenance, repairs and replacements, as necessary, to the Building (inclusive of the Joint Use Facilities), including, but not limited to, the pavement, driveways, pedestrian walkways, exterior doors and windows, lighting systems, plumbing systems, heating and air conditioning systems, elevators, roof, structural systems, Closed Circuit Television, electrical systems, life safety systems and lock and door security access systems. School Board and City Provided Services The City and School Board shall each be required to furnish and pay, at its sole expense, all utilities or other such services not provided as a part of City's Building Services (including, but not limited to, gas, telephone and cable television service, if available, and hook-up and connection charges thereto) and other services which such Party requires with respect to its use of the Building. The School Board, at its sole cost and expense as it relates to the High School, and the City, at its sole cost and expense as it relates to the College and the Joint Use Facilities, shall provide the following routine maintenance services, without limitation: • routine maintenance and repair of interior doors and windows, nonstructural interior partitions, ceilings, floor coverings and wall decoration (e.g., carpeting, painting, wall coverings, drapes and other window treatments, etc.), furniture, fixtures and equipment therein, and all other routine maintenance and repair obligations and activities not otherwise provided by the City under City 's Building Services and City's Building Repairs; Board Initials 32 City Initials • janitorial and custodial services, including cleaning, sanitizing, stocking with supplies and providing minor plumbing repairs to the bathrooms within all such areas and for providing garbage removal to a dumpster designated by the City; • replacement of all standard incandescent and florescent light bulbs, including ballast replacement. Shared Cost for City's Building Services, City's Building Repairs and other Operating & Maintenance Expenses The Joint Use Committee shall estimate the Building Operating & Maintenance Expenses no later than April 30th of each year. The City shall provide and pay for all services itemized under City's Building Services and City's Building Repairs, as set forth above, as well as all other Building Operating & Maintenance Expenses. The Board shall reimburse the City 41 % of the combined actual costs for same, in conformance with the following schedule. In the event either Party utilizes portions of the Building a disproportionate amount of time, the Joint Use Committee shall negotiate in good faith an adjustment to the percentages shared by the respective Parties. Operating Period Payment Due Date Oct 1 — Dec 31 January 31 Jan 1 — Mar 31 April 30 Apr 1 — Jun 30 July 31 Jul 1 — Sep 30 October 30 For purposes of this Agreement, Building Operating & Maintenance Expenses shall mean any and all costs and expenses paid or incurred by City, its representative or designee, in connection with the operation, maintenance, management and repair of the Building and Portion of Property housing the Facility. By way of illustration, but not limitation, these expenses shall include the following: electricity, water, air conditioning, pest control, trash removal, maintenance, repairs and supplies (except as specifically excluded in the section entitled "School Board and City Provided Services"), elevator maintenance, insurance premiums paid by City for the Building and (to the extent paid or required to be paid) deductibles; water, sewer and all other utility charges (other than with respect to utilities separately metered and paid directly by either Party); janitorial and all other cleaning services (except as specifically excluded in the section entitled "School Board and City Provided Services "); taxes and special assessments (if not voluntarily entered into by the City); refurbishing and repainting of common and/or joint use areas; heating and air conditioning; lighting systems, fire detection and security services; landscape maintenance; maintenance staff; road, sidewalk and driveway maintenance; fees for required licenses and permits other than those required exclusively by one Party, fees, charges and other costs necessary for the management, administration and operation of the Building, accounting services, labor, supplies, materials and tools. Capital Repair and Replacements Board Initials 33 City Initials The Joint Use Committee shall jointly prepare a capital repair and replacement plan, which plan shall be updated annually. The Parties covenant and agree to fund each fiscal year their respective share of the capital repairs and replacements scheduled for any given fiscal year. The actual annual cost for conducting the capital repairs and replacements in any given year shall be shared, with the City paying 59% of the cost and the School Board paying 41 % of the cost. The School Board shall remit to the City its share of the actual cost of the capital improvements ("Capital Improvement Expense") within forty-five (45) days of receipt of an invoice from the City, along with all substantiating documentation as may be reasonably required by the School Board. Capital Improvement Expenses in excess of $100,000 may be invoiced by the City in phases based upon completion of the work and actual amounts spent to -date. Ownership of Improvements The City shall continue to own in fee simple the Property, including the Building and all improvements constructed thereon. Insurance In the event the City or Board allow a third party to use any portion of the Building, then said third party shall be required to provide insurance as required by the City and School Board. Each party shall be responsible for insuring its own personal property within the Building. The City will procure property insurance for the Building as part of the City's master insurance policy, in such amounts and with such deductibles agreeable to the Parties, which premium attributable to the Building shall be part of Building Operating & Maintenance Expenses. Notwithstanding the above, the City may, at its sole option if it is economically viable to do so, procure a comprehensive commercial package insurance policy covering the Building and the Building Property, as well as general liability insurance, in such amounts and with such deductibles agreeable to the Parties, with the premium for same to be shared proportionately between the Parties, 41%/59%, with the premium attributable to the Building being part of the Building Operating and Maintenance Expenses. Such coverage shall include commercial general liability and "All Risk" property insurance including coverage against loss or damage by fire, windstorm, flood with such endorsement for extended coverage, vandalism, malicious mischief, sprinkler leakage and special coverage, including flammable materials used for cooking, insuring one hundred percent (100%) of the full replacement cost of the Building, the parties' alterations, improvements, fixtures, equipment, FF&E (excluding free-standing FF&E within the facility), and floor coverings, including the expense of the removal of debris as a result of damage by an insured peril (collectively "Insured Property") on the Portion of Property, with the amounts of coverage and deductibles to be agreed to by the parties respective Risk Management Departments. The City and Board shall be named as Loss Payees and insureds. The parties may mutually agree to self -insure as it relates to liability. Damage and Destruction In the event of Damage or Destruction of all or a portion of the Building, the City shall use insurance proceeds to repair such damage to the Building to substantially the condition that existed prior to the casualty. During such time that all or a portion of the Building is untenantable or unfit for the purposes of the Board, all of the Board's obligations under the Agreement, including the payment of Building O&M Expenses shall be reduced proportionately as it relates to the services no longer being provided to its area as a result of the casualty, unless such damage Board Initials 34 City Initials is caused as a result of the negligence of the School Board, its agents, representatives or employees, or resulting from the School Board's failure to perform its obligations under this Agreement. The City shall not be liable for interruption to School Board's business or for damage to or replacement or repair of School Board's personal property (including, without limitation, inventory, trade fixtures, furniture and other property removable by the School Board) or to any leasehold improvements installed by or on behalf of the School Board to the Building, all of which damage, replacement or repair shall be promptly undertaken and completed by School Board. Subject to the provisions of this Section, the City covenants and agrees to promptly submit any claim for damage to the insurer and to commence the reconstruction work as soon as practicable (but in any event within one hundred eighty (180) days after the occurrence of the casualty, subject to Force Majeure), and to fully complete such reconstruction work as expeditiously as reasonably possible. Notwithstanding the above, in the event there are insufficient proceeds to make the repairs, the parties shall have ninety (90) days from the date the City notifies the Board that there are insufficient insurance proceeds within which to: (1) terminate this agreement; (2) proceed in making repairs which repairs may not result in the same being restored to its condition prior to any such casualty; or (3) work cooperatively to identify and secure sufficient funds to restore same (without imposing an obligation on either party to do so). The parties may, by mutual agreement, extend the ninety (90) day period. If no decision is made within said ninety (90) day period or such other mutually agreed to date, this Agreement will terminate at the end of such period and the Parties shall each be released thereby from any further obligations hereunder accruing after the effective date of such termination, except that such release shall not apply to any sums accrued or due. Insurance Proceeds Except as provided herein with respect to disposition of insurance proceeds in the event of termination of this Agreement, all insurance proceeds shall be used, to the extent required, for the reconstruction, repair or replacement of the Project, so that the Project shall be restored to a condition comparable to the condition prior to the loss or damage (hereinafter referred to as the "Reconstruction Work"). Any funds remaining on deposit following the completion of the Reconstruction Work shall remain with the City for deposit in a separate account to be used in connection with reserves and replacements required for the Facility. In the event of a termination of the Lease and Operating Agreement as a result of a casualty, the City shall disburse and apply any insurance proceeds received by the City shall be payable as follows: • First, to the City to raze the Building and other improvements on the Property and clear the site; and • Next, to City and School Board in proportion to the unamortized portion of their respective construction and capital contributions, assuming amortization of each such contribution on a straight-line basis over thirty (30) years. • The balance, if any, to the City. Board Initials 35 City Initials Jessica Lunsford Act compliance The parties acknowledge the requirements of Sections 1012.32, 1012.465, and 435.04, Florida Statutes (2004) as well as with the requirements of HB 1877, The Jessica Lunsford Act (2005), effective September 1, 2005, as it may from time to time be amended. In recognition of same, the City will not conduct any repairs nor provide any services within the High School or the Joint Use Facilities during hours in which the School Board is utilizing these facilities. In the event it becomes necessary to provide such services or repair during the School Board's use, the City will provide a police officer to escort and remain present during the time any worker is required to be in said areas. The City shall not incur any cost, other than the presence of a police officer as referenced above, in order to comply with the requirements of The Jessica Lunsford Act. Interior Improvements The Board shall have the right at all times to construct non-structural interior improvements within the High School, without the prior approval of the City, provided all such work is done in compliance with all applicable codes, rules and regulations, and the installation of such work will not negatively impact the weight bearing capacity of the floor, or the building's electrical/air conditioning consumption or otherwise create an operational cost impact that has not already been contemplated in the Construction Documents. In the event the City advises that the Board's proposed interior improvements will create such a negative impact, then the Board shall supply documentation as may reasonably be necessary to resolve the issue. In the event it is determined that the proposed interior improvements will create such a negative impact, then the City may disapprove such interior improvement unless the Board assumes the cost of such changes required to the Facility to accommodate the negative impact and/or the additional operational cost impact caused by the installation of such interior improvement. Joint Use Facilities The Parties shall develop and agree to a workable schedule incorporating the use by both Parties of the Joint Use Facilities. Said schedule shall incorporate, at a minimum, the following: - normal hours of use by the High School; - normal hours of use by the College; - use by each Party during other than their normal period of use. Default Remedies and Dispute Resolution Defaults under the Lease shall include, inter alia, failure by the School Board to obtain the City's prior written approval by City Commission Resolution for any transfer of the leased premises to a third party, or failure by the School Board to reimburse the City for any expenses due to the City by the Board. An event of default shall be deemed to have occurred by either Party if such Party fails to observe or perform any covenant, condition or agreement of this Agreement, and such failure continues for a period of thirty (30) days after written notice specifying such default and requesting that it be remedied is sent to the defaulting party by the non -defaulting party; provided, however, that if the default is curable but cannot be cured within thirty (30) days, then the defaulting party shall have such additional time as is reasonably needed to cure such default so Board Initials 36 City Initials long as the defaulting party promptly commences and diligently pursues the cure of such default to completion. In the event the default shall continue, then the Parties agree that the City's City Manager and the Superintendent of Schools, or their designees, shall meet and attempt to cure the Default. If unable to be cured, the non -defaulting party shall be entitled to all remedies available at law or in equity, which may include, but not be limited to, the right to damages and/or specific performance. In a similar fashion, in the event of any dispute, controversy or difference arising between the Parties under this Agreement, the parties shall first attempt to resolve the matter between the City's Chief of Police and the High School Principal, or their designees. If unsuccessful, the City Manager and the Superintendent of Schools, or their designees shall meet in an attempt to resolve the issue. If the issue remains unresolved, one Party may then place the other in Default, as specified above. Use of Name The School Board is allowed, within the scope of normal and customary marketing and promotion of its work, to use the name of the City in promoting and advertising the High School. Authority of Superintendent The Superintendent of Schools or his/her designee shall be the party designated by the School Board to grant or deny any and all approvals required by this Agreement, and shall be the party designated by the School Board to terminate this Agreement in conformance with the provisions of the Agreement. Authority of City Manager The City Manager or his/her designee shall be the party designated by the City to grant or deny any and all approvals required by this Agreement, and shall be the party designated by the City to terminate this Agreement in conformance with the provisions of the Agreement. Parking The City shall provide fifteen (15) parking spaces within the Police Department Garage for High School staff use during normal school hours, subject to meeting applicable indemnifications and security requirements as may be imposed by the City. No Conflict of Interest. The Parties hereto agree that they will each comply with their respective State, County, local and School Board provisions regarding no Conflict of Interest. Eminent Domain In the event that all of the Portion of Property (or such portion thereof as shall render it economically unfeasible to effect restoration thereof for its intended purpose) shall be taken for any public use or purpose by the right or the exercise of the power of eminent domain, or shall be conveyed by the City and School Board, the Rent and money due to the City by the School Board pursuant to the Lease shall be prorated and paid by the School Board to the Date of Taking or conveyance in lieu thereof, and this Lease shall terminate and become null and void as of the Date of Taking or such conveyance. Each Party shall each be paid the amount of damages allocable to and represented by the value of their respective interest in the Building and the Portion of Property. In no event shall School Board be entitled to compensation for any fee ownership interest in the Property at the time of condemnation. Board Initials 37 City Initials In the event that less than all of the Portion of Property shall be taken for any public use or purpose by the right or the exercise of the power of eminent domain, or shall be conveyed by the City and School Board acting jointly to avoid proceedings of such taking, then the Lease and all the covenants, conditions and provisions therein shall be and remain in full force and effect as to all of the Portion of Property not so taken or conveyed. The City shall to the extent there are sufficient proceeds from the condemnation award, remodel, repair and restore the Building so that it will be comparable to the Building prior to the condemnation, taking into consideration the fact of the condemnation; provided, however, that in so doing, the City shall not be required to expend more than the amount of any condemnation award actually received. The City shall be paid the value of the portion of the land so taken, which land shall be valued as if unencumbered. The City and School Board shall be paid the balance of the condemnation award, if any, which are allocable to and represented by the value of their respective interest in the Building and the Portion of Property. Board Initials 38 City Initials