Item C29Co unty of Monr M
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BOARD OF COUNTY COMMISSIONERS
Mayor David Rice, District 4
The Florida Keys
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Mayor Pro Tern Sylvia J. Murphy, District 5
Danny L. Kolhage, District 1
George Neugent, District 2
Heather Carruthers, District 3
County Commission Meeting
February 21, 2018
Agenda Item Number: C.29
Agenda Item Summary #3908
BULK ITEM: Yes DEPARTMENT: Project Management / Facilities
TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292 -4441
N/A
AGENDA ITEM WORDING: Approval to advertise a Request for proposals (RFP) for Higgs
Beach Concessions and approval of an Eighth Amendment to Lease Agreement with Tropical
Watersports, LLC, the current water sports equipment rental vendor on Higgs Beach, to extend its
current lease on a month -to -month basis, not to exceed six (6) months, pending the RFP and award
of a contract, and abatement of rent as noted for September 2017 due to Hurricane Irma.
ITEM BACKGROUND: On June 21, 2017, the BOCC approved a Seventh Amendment to the
Tropical Watersports, LLC Lease allowing replacement of its two existing huts and box trailer with a
new "Tiny House" style trailer. Tropical Watersports purchased the "Tiny House" and additionally
suffered some equipment damage due to vandalism. The "Tiny House" and equipment replacement
costs were approximately $30,000 for Tropical Watersports. After purchasing the new "Tiny
House" and incurring the equipment costs, Hurricane Irma hit, causing a significant loss in income
to Tropical Watersports. Tropical Watersports pays a total rental amount of $2,176.40, plus sales
and usage tax, or ten percent (10 %) of its total gross proceeds per month, whichever is greater, for
the rental of chairs, umbrellas, kayaks, paddle boards, and other water related equipment, and
lockers. Due to the extensive closure of Higgs Beach because of the hurricane, the County will
abate the total rental amount of $2,176.40 and accept only ten per cent (10 %) of Tropical
Watersports' total gross proceeds for each of the aforementioned rentals as the rental payment for
September 2017. On December 28, 2017, Tropical Watersports notified County staff it wished to
renew the Lease again upon its expiration on April 14, 2018. The current Lease, however, does not
provide for any additional renewals. Pursuant to Fla. Stat. Sec. 125.35, the County is authorized to
lease real property belonging to the County, whenever the BOCC determines that it is in the best
interest of the County to do so, to the highest and best bidder for the particular use that the Board
deems to be the highest and best use, on such terms and conditions as the Board determines. So, this
is a request for approval to advertise an RFP for Higgs Beach Concessions due to the expiration of
the current Vendor's Lease, approval of the Eighth Amendment extending the current Lease on a
month -to -month basis pending the RFP and award of a contract, and approval of a partial abatement
of the September 2017 rental payment.
PREVIOUS RELEVANT BOCC ACTION:
April 15, 2009 BOCC approved the Lease Agreement with Tropical Watersports, LLC.
October 21, 2009 BOCC approved an Amendment to the Lease Agreement to provide
additional booth areas.
January 20, 2012 BOCC approved a Lease Renewal Agreement to the Lease Agreement to
reduce the lease area and booths and amend the rental and fees adjusted in
an amount equal to the CPI -U for the preceding 12 months and extend the
Term of the Lease Agreement to six (6) years with one additional three (3)
year period optional renewal.
March 18, 2015 BOCC approved a Third Amendment to the Lease Agreement to extend
the Lease Agreement for three (3) years with a CPI -U increase of .8% as
of December 31, 2014.
March 23, 2016 BOCC approved the Fourth Amendment to Lease Agreement to adjust for
the CPI -U for the prior 12 months ending December 2015 of .7 %.
September 21, 2016 BOCC approved to transfer 115 square feet of storage from Tropical
Watersports to 1000 Atlantic Boulevard, LLC, a/k/a Salute Restaurant.
October 19, 2016 BOCC approved a Fifth Amendment Agreement to reduce the Lessee's
leasehold area by discontinuing the use of Area 3, ( "Concessions
Storage ") and Area 2, ( "Sailboat Storage Area "), as depicted on Exhibit
"A" dated September 27, 2011, and increase the Lessee's leasehold area
by designating an area for the parking of a road ready mobile storage
container ( "Mobile Storage Trailer "), in the Higgs Beach parking area, as
depicted on Exhibit `B" as Area 2, ( "Concession Storage Trailer "); and
Lessee agrees to keep the Mobile Storage Trailer licensed, registered, and
in a road ready condition.
March 15, 2017 BOCC approved a Sixth Amendment to Lease Agreement to adjust for the
CPI -U for the prior 12 months ending December 2016 of 2.1 %.
June 21, 2017 BOCC approved the Seventh Amendment to Lease Agreement with
Tropical Watersports, LLC, to replace existing concession huts and
storage box trailer with a "Tiny House" style trailer road ready and to be
placed on the existing concrete slab.
CONTRACT /AGREEMENT CHANGES:
Extend Lease Agreement with Tropical Watersports, LLC, on month -to -month basis, not to exceed
six (6) months pending the advertising of an RFP and award of contract, and abate partial rent for
September 2017.
STAFF RECOMMENDATION: Approval
101KIM 101011►_V Y LOU.
Eighth Lease Amendment (executed -legal stamped)
FINANCIAL IMPACT:
Effective Date: April 15, 2018
Expiration Date: Month -to -month not to exceed six (6) months.
Total Dollar Value of Contract: $2,176.40 /month Revenue
Total Cost to County:
Current Year Portion: $21,764.00
Budgeted: Yes
Source of Funds: Revenue
CPI: Yes
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: yes If yes, amount: $2,176.40 /month
Grant: N/A
County Match: N/A
Insurance Required: Yes
Additional Details:
REVIEWED BY:
Kevin Wilson
Completed
02/05/2018 1:44 PM
William DeSantis
Completed
02/05/2018 3:22 PM
Patricia Eables
Completed
02/06/2018 12:20 PM
Budget and Finance
Completed
02/06/2018 1:34 PM
Maria Slavik
Completed
02/06/2018 1:35 PM
Kathy Peters
Completed
02/06/2018 1:51 PM
Board of County Commissioners
Pending
02/21/2018 9:00 AM
1
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WHEREAS, the "Tiny House" was delivered and become operational at the Higgs Beach site on
tr about October 8 and
WHEREAS, parties now 1 the current term of the Lease Agreement,
amended, on a month-to-month basis, not to exceed six (6) months, pending the advertising of
Request for Proposals (RFP) and award of a contract, and abate certain rental payments for Septernbi
►O' 7 due and
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... parties i ree as follo
Section Paragraph of the L ease dated A1 0w as amended, is amended to
read as
11M The term of this lease extension shall commence on April 0 S
on 1 w w basis for w of w' to exceed six w months pending
advertising of an RFP and award of 1
4ection 3. In all other respects, the Lease dated April dated
*ctober 109 the Lease Renewal dated January 20, 2012, w Amendment, daI
March 18, 2015, the Fourth Amendment dated March 23, 2016, the Fifth Amendment dated
*ctober w 2016, the Sixth Amendment dated March 15, 2017, and the Seventh Amendment
?ated June 21, 2017, remain in full force and effect.
SUM
f orth Except as set *. the terms an cond o f
amended, not inconsistent herewith, remain in full force and effect.
IN WITNESS WHEREOF, each party has caused this Eighth Amendment to Lease Agreement to be
executed by its duty authorized representative.
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Deputy Clerk
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