Item C21County of Monroe
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BOARD OF COUNTY COMMISSIONERS
Mayor George Neugent, District 2
The Florida. Key
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Mayor Pro Tem David Rice, District 4
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Danny L. Kolhage, District I
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
March 15, 2017
Agenda Item Number: C21
Agenda Item Summary #2731
BULK ITEM: Yes DEPARTMENT: Project Management / Facilities
TIME APPROXIMATE: STAFF CONTACT: Alice Steryou (305) 292 -4549
None
AGENDA ITEM WORDING: Approval of a CPI -U adjustment ending on December 31, 2015 of
.7% to the Business Lease with Ships Way, Inc. for Commissioner Neugent's office space on Big
Pine Key. The lease will increase from $1,238.21 per month to $1,246.88 per month commencing on
December 15, 2016.
ITEM BACKGROUND: The lessor has requested pursuant to the terms of the Original Agreement
that the rental amount be adjusted in accordance with the percentage change in the U.S. Department
of Commerce Consumer Price Index (CPI -U) for all Urban Consumers as reported by the U.S.
Bureau of Labor Statistics for the previous calendar year of .7% on December 31, 2015.
PREVIOUS RELEVANT BOCC ACTION: On December 9, 1998, the BOCC granted approval
and authorized execution of a Business Lease Agreement for office space in Big Pine for
Commissioner Neugent. On November 21, 2002, the BOCC granted approval to renew a Business
Lease with Ships Way, Inc. for Commissioner's office space. On November 15, 2006 and
December 15, 2010 the BOCC approved execution of a renewal Business Lease with Ships Way,
Inc. for continuance of Commissioner's office space. On December 14, 2014, the lease to occupy
space from Ships Way, Inc. expired and lessor granted another option to renew for an additional
four -year period terminating December 14, 2018 which included a termination clause.
CONTRACT /AGREEMENT CHANGES:
Monthly rent commencing December 15, 2016, $1,246.88 is to be applied to the first month's rent,
including a pro -rated amount for any part month; and $1,246.88 on the first day of each month
thereafter with possible annual increases of up to three percent (3 %) based on the Consumer Price
Index.
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
031517_First Amendment to Business Lease Ships Way 2 -27 -17 (legal stamped)signed
031815 Ships Way Business Office Space Lease C -23
FINANCIAL IMPACT:
Effective Date: 12/15/16
Expiration Date: 12/14/18
Total Dollar Value of Contract: $14,962.56
Total Cost to County: $14,962.56 per year
Current Year Portion: $11,845.36
Budgeted: Yes
Source of Funds:
CPI: possible
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: No If yes, amount:
Grant: No
County Match: N/A
Insurance Required: Yes
Additional Details: Retroactive to December 15, 2016
03/15/17 001 -00101 - BOCC ADMINISTRATIVE
530440
$14,962.56
REVIEWED BY:
Doug Sposito
Completed
02/28/2017 3:21 PM
Chris Ambrosio
Completed
02/28/2017 3:41 PM
Lisa Abreu
Skipped
03/01/2017 9:38 AM
Budget and Finance
Completed
03/01/2017 9:59 AM
Maria Slavik
Completed
03/01/2017 10:20 AM
Kathy Peters
Completed
03/01/2017 12:21 PM
Board of County Commissioners
Pending
03/15/2017 9:00 AM
THIS FIRST AMENDMENT TO BUSINESS LEASE, iumade and entered into
this 15th dav ofMarch, 2017, between SHIPS WAY. INC., hereinafter called "Lessor" or
"Lund|ooj", party of the first part, and THE COUNTY 0FMONR[)E hereinafter called
"Lessee" or "Tenant", party of the second pary
WHEREAS, Lessor and Lessee entered into a four (4) year Business Lease (hereafter m
"Original Amneemeut")onthe lSth day o[ March, 2Ol5. with ulease tern commencing on
December )5,20l4. and ending on December |4.2U18;and �~
WHEREAS, Lessor has requested pursuant tothe terms of the Original Agreement that the
pcoWd amount hoadjusted annually in accordance with the percentage change in the D.S.
Department of Commerce Consumer Price Index (CPI-U) for all Urban Consumers as
reported by the U.S, Bureau of Labor Statistics for the previous calendar year; and
WHEREAS, the CPI-U adjustment on December 3l.20l5,wus7%;and
WHEREAS, the parties have found the Lease iobe mutually beneficial; and
WHEREAS, both parties desire xm amend the Lease,
NOW THEREFORE, in consideration of the mutual promises, covenants and agreements
stated herein, and for other good and valuable consideration, the sufficiency of which is
hereby acknowledged, the parties agree umfollows:
The First unnumbered Paragraph after the VYitnexaeth C|uuac of the Original Agreement is
amended tnread:
An office comprised of 813.5 square feet, located in the building known as The
3huon of Ships Way, 25 Ships Wuy, Big Pine Key, situated in Monroe County Florida, to
be used and occupied by the )uasec as an office and for no other purposes or uwoa
wbutsoever, for the term of four (4) Youm. beginning December 15. 2014, and ending
December 14, 2010. the rent tohe paid as follows: Commencing December 15, 2016,
$1 is to be applied to the §zsC month's rent, including a pro-rated amount for any
part month; and $1,246.88 on the first day o[each month tMcreuber. AoouuOy, on the
anniversary of this |euue, ibenc may be an iocnuusc not to exceed three (3) pemoent, in the
monthly rent payment. The lease amount may beadjusted annually in accordance with the
percentage change in the O.S. Department of Commerce Consumer Price Index (CPI-D)
for all Urban Consumers as reported by the U.S. Bureau of Labor Statistics for the previous
calendar year.
Fn all other respects the terms and conditions • the Lease, as amended shall remain in full
force and effect.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day
and year first above written.
Attest: KEVIN MADOK, CLERK BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By: By:
Deputy Clerk Mayor/Chairperson
(SEAL)
SHIPS WAY, INC. ATTEST:
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Judy A. Shepliard, Presic�nl DaVid S. Shephard, Direclo'
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BUSINESS LEASE
THIS AGREEMENT, is made and entered into this 18th day of March, 2015,
between SHIPS WAY, INC. hereinafter called "lessor" or "landlord ", party of the first part,
and THE COUNTY OF MONROE, hereinafter called "lessee" or "tenant ", party of the
second part:
WITNESSETH, that said lessor does this day lease unto said lessee, and said
lessee does hereby hire and take as tenant under said lease, the space described as follows:
An office comprised of 813.5 square feet, located in the building known as The
Shops of Ships Way, 25 Ships Way, Big Pine Key, situated in Monroe County, Florida, to
be used and occupied by the lessee as an office and for no other purposes or uses
whatsoever, for the term of four (4) Years, beginning December 15, 2014, and ending
December 14, 2018, the rent to be paid as follows: Upon the signing of this lease,
$1,238.21 is to be applied to the first month's rent, including a pro -rated amount for any
part month; and $1,238.21 on the first day of each month thereafter. Annually, on the
anniversary of this lease, there may be an increase not to exceed three (3) percent, in the
monthly rent payment. The lease amount may be adjusted annually in accordance with the
percentage change in the U.S. Department of Commerce Consumer Price Index (CPI -U)
for all Urban Consumers as reported by the U.S. Bureau of Labor Statistics for the previous
calendar year.
Monroe County's performance and obligation to pay under this contract, is contingent upon
an annual appropriation by the BOCC. Payment shall be in arrears and pursuant to Florida
Local Government Prompt Payment Act. The lessee is a political subdivision of the State
of Florida and, therefore, is not subject to state sales tax.
All payments are to be made by mail to the lessor at: 29438 Saratoga Avenue, Big
Pine Key, Florida 33043.
The following express stipulations and conditions are made a part of this lease and
are hereby agreed to by all parties:
FIRST: The lessee shall not assign, nor sub -let the premises, or any part
thereof, nor use the same, or any part thereof, for any other purpose than as above
stipulated, nor make any alteration therein, or additions thereto, without the written consent
of the lessor, and all additions, fixtures, or improvements which may be made by the
lessees, except movable office furniture, shall become the property of the lessor and remain
upon the premises as a part thereof, and be surrendered with the premises at the termination
of the lease.
SECOND: All personal property, placed or moved in the premises above
described, shall be at the risk of the lessees or owners thereof, and lessor shall not be liable
for any damage to said personal property or to the lessee, arising from the bursting or
leaking of water pipes, or from any act of negligence of any other co- tenant or occupant of
the building or of any other person whomsoever, absent negligence on the part of the
lessor. There will be no outside storage without the written consent of the lessor.
THIRD: The tenant shall promptly execute and comply with all statutes,
ordinances, rules, orders, regulations, and requirements of the Federal, State, and City
Government and of any and of all their departments and bureaus applicable to said
premises, for the correction, prevention, and abatement of nuisances of other grievances,
in, upon, or connected with said premises during said term, and shall also promptly comply
with and execute all rules, orders, and regulations of the Southeastern Underwriters
Association for the prevention of fires, at its own cost and expense.
FOURTH: In the event that the premises shall be destroyed or so damaged or
injured by fire or other casualty during the life of this agreement, whereby the same shall
be rendered untenantable, then the lessor shall have the right to render said premises
tenantable by repairs within ninety (90) days therefrom. If said premises are not rendered
tenantable within said time, it shall be optional with either party hereto to cancel this lease,
and in the event of such cancellation the rent shall be paid only to the date of such fire or
casualty. The cancellation herein mentioned shall be evidenced in writing.
FIFTH: The prompt payment of the rent for said premises upon the dates
named, and the faithful observance of the rules and regulations printed upon this lease,
which are hereby made a part of this covenant, are the conditions upon which this lease is
made and accepted, and any failure on the part of the Lessee to comply with the terms of
said lease, or any of said rules and regulations now in existence, shall be at the option of
the lessor to work a breach of this contract.
Lessor shall give the tenant notice of breach in writing and Lessee shall have 14 business
days to remedy the breach.
SIXTH: If the lessee shall abandon or vacate said premises before the end of
the term of this lease, or shall suffer the rent to be in arrears, the lessor may, at his option,
forthwith terminate this lease or he may enter said premises as the agent of the lessee,
without being liable in any way therefore, and relet the premises with or without any
furniture that may be therein, at such price and upon such terms and for such duration of
time as the lessor may determine, and receive the rent therefore, applying the same to the
payment of the rent due by the presents, and if the full rental herein provided shall not be
realized by the lessor over and above the expenses to the lessor in such re- letting, the said
lessee shall pay the deficiency, and if more than the full rental is realized lessor will pay
over to said lessee the excess upon demand.
SEVENTH: In any civil action brought to enforce the provisions of this lease, the
party in whose favor a judgment has been rendered may recover reasonable court costs,
including attorney's fees, from the non - prevailing party.
EIGHTH: The lessee agrees that it will pay all charges for rent, changing the
filter on the air conditioning unit, electricity or other illumination, and for all water used on
said premises. The lessee agrees also to pay any additional costs incurred from excessive
refuse disposal should they occur.
NINTH: The lessor, or any of his agents, shall have the right to enter the
subject rental premises with a 24 -hour notice (except in an emergency) during all
reasonable hours, to examine the same to make such repairs, additions, or alterations as
may be deemed necessary for the safety, comfort, or preservation thereof, or of said
building, or to exhibit said premises and to put or keep upon the doors or windows thereof
a notice "For Rent" at any time within thirty (30) days before the expiration of this lease.
The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures,
alterations, or additions, which do not conform to this agreement, or to the rules and
regulations of the building. Landlords shall give tenant prior reasonable notice of their
intent to enter premises.
TENTH: The Lessee hereby accepts the premises in the condition they are in
at the beginning of this lease and agrees to maintain said premises in the same condition,
order, and repairs as they are at the commencement of said term, excepting only reasonable
wear and tear arising from the use thereof under this agreement, and to make good to said
lessor immediately upon demand, any damage to water apparatus, or electric lights or any
fixture, appliances or appurtenances of the said premises, or of the building, caused by any
act or neglect of lessees, or any person or persons in the employ or under the control of the
lessee.
ELEVENTH: It is expressly agreed and understood by and between the parties to
this lease that the lessor shall not be liable for any damage or injury by water, which may
be sustained by the lessees or any other person, or for any other damage or injury resulting
from the carelessness, negligence, or improper conduct on the part of any other lessees, or
agents, or employees, or by reason of the breakage, leakage, or obstruction of the water,
sewer, or soil pipes, or other leakage in or about the said building.
TWELFTH: If lessees shall become insolvent or if bankruptcy proceedings shall
be begun by or against lessees before the end of the lease term, lessor is hereby irrevocably
authorized at its option, to forthwith cancel this lease, as for a default. Lessor may elect to
accept rent from such receiver, trustee, or other judicial officer during the term of the
occupancy in their fiduciary capacity without affecting lessor's rights as contained in this
contract, but no receiver, trustee, or other judicial officer shall ever have any right, title, or
interest in or to the described property by virtue of this contract.
THIRTEENTH: This contract shall bind lessor and their assigns or successors, and
the heirs, assigns, administrators, legal representatives, executors or successors as the case
maybe, of the lessees.
FOURTEENTH: It is understood and agreed between the parties hereto that the time
is of the essence of this contract and this applies to all terms and conditions contained
herewith.
FIFTEENTH: It is understood and agreed between the parties hereto that written
notice by certified mail or delivered to the premises leased hereunder shall constitute
sufficient notice to lessee, and written notice by certified mail or delivered to the above
stated address of lessor shall constitute sufficient notice to the lessor, to comply with the
terms of this contract.
SIXTEENTH: The rights of the lessor under the foregoing shall be cumulative, and
failure on the part of the lessor to exercise promptly any rights given hereunder shall not
operate to forfeit any of the said rights.
SEVENTEENTH: It is further understood and agreed between the parties hereto that
any charges against lessees by lessor for services or for work done on the premises by order
of lessees or otherwise accruing under this contract shall be considered as rent due and
shall be included in any lien for rent due and unpaid.
EIGHTEENTH: It is hereby understood and agreed that any signs or advertising to be
used, including awnings, in connection with the premises leased hereunder shall be first
submitted to lessor for approval before installation of same, and maintained in an
acceptable condition.
NINETEENTH: The lessees, and its customers and invitees, shall have the right,
during the term of the lease, to use the parking area or areas owned by the lessor and
located adjacent to the premises, of which the leased premises form apart, in common with
the tenants occupying other portions of the entire building. The lessees covenants and
agrees, however, that it will not permit its employees or concerns making deliveries to or
from the leased premises to use any portion of the parking area or areas other than such
reasonable portion as lessor shall set apart for such purpose. The North parking area shall
be designated for employee parking, and it shall be most appreciated by all if that
regulation is enforced.
TWENTIETH: Lessees are a self - insured political subdivision of the State of
Florida and shall, at their own expense, at all times during the term of this lease, maintain
Insurance that will insure the lessor against liability for injury in or death of persons, or
loss or damage to their property occurring in or about the demised premises. The insurance
coverage shall not waive any immunity lessee has pursuant to State Statute.
TWENTY- FIRST: If the tenant fails to pay rent due and the default continues for three
(3) days, excluding Saturdays, Sundays, and legal holidays, after delivery of written
demand by the landlord for payment of the rent or possession of the premises, landlord may
terminate the rental agreement. The three (3) day notice shall contain a statement in
substantially the following form:
You are hereby notified that you are indebted to us in the sum of dollars for
the rent and use of the premises (address of lease premises, including County),
Florida, now occupied by you and we demand payment of the rent, or possession of
the premises, within three (3) days (excluding Saturday, Sunday, and legal holidays)
from the date and delivery of this notice, to wit: on or before the day of
20
TWENTY- SECOND: In the absence of actual knowledge of abandonment, it shall be
presumed that the tenant has abandoned the rental unit if tenant is absent from the premises
for a period of time equal to one -half the time for periodic rental payments. However, this
presumption shall not apply if the rent is current or the tenant has notified the landlord of
an intended absence and there are no breaches outstanding.
TWENTY - THIRD: Unless stated otherwise herein, the landlord and tenant shall refer
to Florida Statutes Chapter 83, Part 1.
TWENTY- FOURTH: All notices and payments under this lease shall be given to:
For Landlord:
Judy A. Shephard
29438 Saratoga Avenue
Big Pine Key, FL 33043
For Monroe County:
Public Works
1100 Simonton Street
Key West, FL 33040
OPTION TO RENEW: Lessor grants to lessee an option to renew this lease for a period
of four (4) years after the expiration of its original term, on the same conditions of this
lease. Lessees shall give lessor written notice of its intention to renew this lease thirty (30)
days prior to the expiration of this lease.
TERMINATION FOR CONVENIENCE: Lessee may terminate this Agreement upon 90
days written notice. No rental shall accrue and neither party shall have any further obligations
under the terms of the lease after the effective termination date of the notice.
IN WITNESS WHEREOF, the parties hereto have hereunder executed this instrument for
the purpose herein expressed, the day and year above written.
AMY HEAVILIN, CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
deputy Clerk
SHIPS WAY, INC.
li ire
Danny Mayor
ATTEST
By: . . By: .fit
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R* . She lard, Pr I , %nt David S. S
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