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Item C12 C12 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor Craig Cates,District 1 The Florida Keys Mayor Pro Tern Holly Merrill Raschein,District 5 Michelle Lincoln,District 2 James K.Scholl,District 3 m' David Rice,District 4 Board of County Commissioners Meeting September 20, 2023 Agenda Item Number: C 12 2023-1407 BULK ITEM: Yes DEPARTMENT: Parks and Beaches TIME APPROXIMATE: STAFF CONTACT: Tammy Acevedo N/A AGENDA ITEM WORDING: Eighth Amendment to lease agreement with Salute Watersports, LLC, to renew the term for the Fifth of Five (5) one-year periods with the term to commence October 16, 2023, and terminate on October 15, 2024, with a 6.5% CPI-U increase in the rent. The monthly payment will increase from $565.52 to $602.28 plus 7.5% of gross sales. ITEM BACKGROUND: This Eighth Amendment to the Lease Agreement with Salute Watersports, LLC is to renew the lease term for the fifth and final of five (5) optional one-year periods with the term to commence October 16, 2023, and terminate on October 15, 2024, and to adjust the annual CPI-U increase to 6.5% on the monthly rent. The monthly payment will increase from $565.52 to $602.28 plus 7.5% of gross sales. PREVIOUS RELEVANT BOCC ACTION: January 25, 2023 BOCC approved a Seventh Amendment to the Lease Agreement with Salute Watersports, LLC, providing for an abatement of rent for a fifteen (15) day period while the beach was closed from September 27th— October 12, 2022. September 21, 2022 BOCC approved a Sixth Amendment to the Lease Agreement with Salute Watersports, LLC to renew the rental term for the fourth of five (5) optional one-year periods with the term to commence October 16, 2022, and terminate on October 15, 2023, and to adjust the annual CPI- U increase to 7% on the monthly rental. The monthly payment increased from $528.52 to $565.52. Salute Watersports provides the mobile retail merchandise and service concession at Higgs Beach. 602 January 21, 2022 BOCC approved a Fifth Amendment to abate rental payments for Salute Watersports, LLC, due to beach closures or limited access during the Shoreline Restoration Project at Higgs Beach. The shoreline project was completed in early December 2021. The rent abatement is for a half-month of October 2021, and the full month of November 2021. The total abatement amount is $ 844.37, which includes rent and usage tax (7%). Lessee had already paid its October rent and usage tax, so one-half of that payment was applied as a credit to the December 2021 rental payment. September 15, 2021 BOCC approved the Fourth Amendment and one-year renewal with a CPI-U adjustment of 1.4%. November 17, 2020 BOCC approved the Third Amendment and one-year renewal with a CPI-U adjustment of 2.3%. June 17, 2020 BOCC approved the Second Amendment to abate total monthly rental payments and commissions for March, April, and May 2020, due to COVID-19 closures at Higgs Beach. December 11, 2019 BOCC approved the First Amendment and one-year renewal with a CPI-U adjustment of 1.9%. July 179 2019 BOCC approved the assignment of Tropical Watersports, LLC Lease to Salute Watersports, LLC, of its Mobile Retail Merchandise or Service Concession at Higgs Beach, which was to expire on October 15, 2019. October 17, 2018 BOCC approved an award of bid to Tropical Watersports, LLC, with a one (1) year Lease Agreement retroactive to October 16, 2018, which expires on October 15, 2019. The Lease may be renewed, at the County's discretion, after reassessing the terms and pending negotiations between the parties for five (5) additional, one (1)year terms. February 21, 2018 BOCC approval to advertise a Request for Proposals for mobile retail merchandise or service concession at Higgs Beach. CONTRACT/AGREEMENT CHANGES: Amendment to Extend Current Lease for the last option to renew and to adjust the CPI-U annual increase. STAFF RECOMMENDATION: Approve 603 DOCUMENTATION: 8th Amendnent to the Lease Request for Renewal to County from Salute Watersports_08/11/2023 Salute Watersports Certificate of Insurance (COI) Exp 08/02/2024 7th Amendment FINANCIAL IMPACT: Total Cost to County: N/A Current Year Portion: 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: Revenue If yes, amount: $602.28/month plus 7.5 % of the monthly gross taxable sales. Grant: N/A County Match: N/A Insurance Required: Yes (Current COI) Additional Details: 604 EIGHTH AMENDMENT TO LEASE AGREEMENT FOR HIGGS BEACH CONCESSION, KEY WEST,MONROE COUNTY,FLORIDA THIS EIGHTH AMENDMENT TO LEASE AGREEMENT is made and entered into this 20th day of September, 2023, between MONROE COUNTY, FLORIDA ("COUNTY"/"LESSOR"), a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, Florida 33040, and SALUTE WATERSPORTS, LLC ( CONTRACTOR"/"LESSEE"), a Florida limited liability company, whose address is 1000 Atlantic Blvd., Key West, Florida 33040. WHEREAS, on October 17, 2018, the County entered into a Lease Agreement with Tropical Watersports, LLC, the predecessor in interest, for the operation of a mobile concession on the Clarence S. Higgs Memorial Beach Park, Key West, Monroe County, Florida, (hereinafter "Original Agreement"); and WHEREAS, on July 17, 2019, the Monroe County Board of County Commissioners ("BOCC") approved the Lease Assignment, assumption, and Consent ("Assignment") of the Original Agreement from Tropical Watersports,LI_,C,to Salute Watersports,LLC,for the operation of a mobile concession on the Clarence S. Higgs Memorial Beach Park,Key West,Monroe County, Florida; and WHEREAS, on December 11, 2019, the BOCC approved the First Amendment to the Original Agreement to renew the term for the first of five (5) optional one-year periods with the term to commence retroactive to October 16, 2019, and terminate on October 15, 2020, and to adjust the CPI-U increase of 1.9%retroactive to October 16, 2019; and WHEREAS, on June 17, 2020, the BOCC approved the Second Amendment to Lease Agreement to abate total monthly rental payments and the 7.5% monthly gross taxable sales payments due by Lessee for the months of March, April, and May 2020, due to Higgs Beach COVID-19 closures; and WHEREAS, on November 17, 2020, the BOCC approved the Third Amendment to the Original Agreement to renew the term for the second of five(5)optional one-year periods with the term to commence retroactive to October 16, 2020, and terminate on October 15, 2021, and to adjust the CPI-U increase of 2.3%; and WHEREAS, on August 18, 2021, the BOCC approved the Fourth Amendment to the Original Agreement to renew the term of the Agreement for the third of the five (5) optional one- year periods with the term to commence on October 16, 2021, and tenminate on October 15, 2022, and the rental amount was adjusted in accordance annually 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 at December 31 of the previous year of 1.4%; and WHEREAS,on January 21,2022,the BOCC approved a Fifth Amendment to the Original Agreement to abate one-half(1/2)of the monthly rental payment due by Lessee for a partial month of Oct ober 2021 and the full month of November 2021, due to Higgs Beach shoreline restoration project closures,which was initiated by the County; and roved a Sixth Amendment to the WHEREAS, on September 21, 2022, the BOCC appwith original Agreement in which the parties renewed the term for ron Octtoberr 15, 2023, anitional one-year d the rental g the term to commence on October 16, 2022, and termmat ge the U.S. Department of amount was adjusted in accordance with the percentage Consumerschan as reported by the U.S.Bureau Commerce Consumer Price Index(CPI-U)for rev ouall s Urban ear /o of 7 , with the total monthly rental of Labor Statistics at December 31 of the p y -five and 52/100 ($565.52) Dollars, with an effective payment increasing to Five Hundred Sixty date of October 16, 2022; and WHEREAS, On December 7, 2022, the BOCC approved the Seventh Amendment ent for October 2022 due to the allowing for abatement of a portion of the monthly rental paym Hurricane Ian closures; and found the Original Agreement, as amended, to be mutually WHEREAS, the parties have beneficial; and WHEREAS,the parties find that it would be mutually beneficial to enter into this Eighth Amendment to Lease Agreement. NOW THEREFORE,IN CONSIDERATION of the mutual promises and covenants contained herein, it is agreed as follows: 1. In accordance with Paragraph 6 of the Original Agreement, the County exercises the option to amend the agreement and the amount shall be adjusted in accordance annually 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 at December 31 of the previous year of 6.5%with payments increasing from$565.52 per month to $602.28 per month; with an effective date of October 16, 2023, and to terminate on October 15, 2024. 2. In accordance with Paragraph 5 of the Original Agreement, the County exercises the option to renew the agreement for the Fifth of(5) five optional (1) one-year periods. This renewal shall commence on the 16rh day of October,2023 and end on October 15,2024,unless terminated earlier under another paragraph of this agreement. 3. Except as set forth in paragraph 1 and 2 of this Eighth Amendment Agreement, in all other respects, the terms and conditions set forth in the Original Agreement 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. (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA By: By:As Deputy Clerk Mayor APPROVED AS TO FORM&LEGAL SUFFICIENCY Monr '�ounty Attorney'.Office Date: A Q t,1,103 0W05/2023 N thalia Mellies Archer Ass tant County Attorney Witnesses for CONTRACTOR: CONTRACTOR/LESSEE: ("SALUTEWAT SPORTS,LLC qli Signature gnature of person authorized to legally bin the 'orporation Print Name and e Date: C! Print N me and Title Address: cm . µ nature �S� Telephone g Number fit' , Print Name and Date THE SMITH LA w FIRM A PROFESSIONAL-ASSOC IATI 509 WHITEHEAD STREET*KEY WEST,FLORIDA 33040 WAYN E LARU E SMITH,MBA.JD ALSO ADM rI7ED ARIZONA&WASHINWON,DZ. BRE-rT TYLER SMITH ASHLEY N.SYBESMA VIA E-MAIL AND CERTIFIED MAIL RETURN RECEIPT RE<)UESTED August 11, 2023 Bob Shillinger, County Attorney Monroe County Monroe County Attorneys Office Facilities Maintenance Contract Monitor P.O. Box 1026 3583 S. Roosevelt Boulevard Key West, Florida 3304 1-1026 Key West, Florida 3,3040 E-Mail: E-mail: �11't FE�g o)_%, Certified Mail Certified Mail #7022 2410 0000 8753 2393 #7022 2410 0000 8753 2409 RE: Salute Watersports, LLC Request for Renewal of Lease Agreement for Higgs Beach Concession Dear Monroe County: This office has the pleasure of representing Sal-Lite Watersports, LLC. Pursuant to paragraph 3(ix) of the Lease Assignment, Assumption and Consent Agreement dated July 19, 2019 and paragraph 5 of the Lease Agreement for Higgs Beach Concession dated October 1.7, 2018 ("Lease"), please be advised that Salute Watersports, LLC hereby requests that Monroe County renew the Lease for a one (1) year term to commence on October 16, 2023, Please let us know if Monroe County requires or desires any additional information to move forward with this Lease renewal request. Thank you for your attention. Sincerely, Wa LaRue Smith WLS/Ilr cc: Salute Watersports, LLC TELEPHONE: (305)296-0029 -FACSIMILE: (305)29&9172 *TOLL FREE: (600)800-3497 -E-MAIU T5LFffTHFSMrrH1AWF1RM.COM 608 SALUWAT-01 DORSEYRI ACORO"° CERTIFICATE OF LIABILITY INSURANCE DAT/18/2D/YYYY) 023 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Julie Broche NAME: Insurance Office of America PHONE FAX 13361 Overseas Highway (A/C,No,Ext): (305)537-2803 (A/C,No):(305)743-0582 Marathon,FL 33050 E-MAIL Julie.Broche@ioausa.com INSURERS AFFORDING COVERAGE NAIC# INSURERA:Century Surety Company 36951 INSURED INSURER B: Salute Watersports,LLC INSURER 7 729 Thomas Street INSURER D: Key West,FL 33040 INSURER E INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF POLICY EXP LIMITS LTR INSD WVD MMIDD/YYYY MMIDD/YYYY A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR CCP1171695 8/2/2023 8/2/2024 DAMAGE TO RENTED 100 000 X PREMISES Ea occurrence $ X Owner's&Contractor MED EXP(Any oneperson) $ 5,000 PERSONAL&ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 X POLICY PELT LOC PRODUCTS-COMP/OPAGG $ Included OTHER: $ A AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT 500,000 Ea accident $ ANY AUTO X CCP1171695 8/2/2023 8/2/2024 BODILY INJURY Perperson) $ OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY Per accident $ X HIRED X NON-OWNED PROPERTY DAMAGE AUTOS ONLY AUTOS ONLY Per accident $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANY PROPRIETOR/PARTNER/EXECUTIVE ❑ - 16 T E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) } "J """ E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below DATE, 8.18 23 � - E.L.DISEASE-POLICY LIMIT $ WAMP NA XYW— DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) Named A/I CG 2011 1219-Landlord Monroe County BOCC is additional insured with respect to General Liability and Auto Liability CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Monroe County BOCC 1100 Simonton Street ~ Key West FL 33040 ACORD 25(2016/03) ©1988-2015 ACORD CORPORATION. All rights reser609 The ACORD name and logo are registered marks of ACORD c_c,r�r,ed -t ema' lecl 11�q(22 SEVENTH AMENDMENT TO LEASE AGREEMENT FOR HIGGS BEACH CONCESSION,KEY WEST,MONROE COUNTY,FLORIDA THIS SIXTH AMENDMENT TO LEASE AGREEMENT is made and entered into this 7th day of December, 2022, between MONROE COUNTY, FLORIDA ("COUNTY"/"LESSOR"), a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, Florida 33040, and SALUTE WATERSPORTS, LLC ("CONTRACTOR"/"LESSEE"), a Florida limited liability company, whose address is 1000 Atlantic Blvd.,Key West,Florida 33040. WHEREAS, on October 17, 2018, the County entered into a Lease Agreement with Tropical Watersports, LLC, the predecessor in interest, for the operation of a mobile concession on the Clarence S. Higgs Memorial Beach Park, Key West, Monroe County, Florida, (hereinafter "Original Agreement"); and WHEREAS, on July 17, 2019, the Monroe County Board of County Commissioners (`BOCC") approved the Lease Assignment, Assumption and Consent ("Assignment") of the Original Agreement from Tropical Watersports, LLC, to Salute Watersports, LLC, for the operation of a mobile concession on the Clarence S. Higgs Memorial Beach Park, Key West, Monroe County, Florida; and WHEREAS, on December 11, 2019, the BOCC approved the First Amendment to the Original Agreement to renew the term for the first of five (5) optional one-year periods with the term to commence retroactive to October 16, 2019, and terminate on October 15, 2020, and to adjust the CPI-U increase of 1.9% retroactive to October 16, 2019; and WHEREAS, on June 17, 2020, the BOCC approved the Second Amendment to Lease Agreement to abate total monthly rental payments and the 7.5% monthly gross taxable sales payments due by Lessee for the months of March, April, and May 2020, due to Higgs Beach COVID-19 closures; and WHEREAS, on November 17, 2020, the BOCC approved the Third Amendment to the Original Agreement to renew the term for the second of five(5)optional one-year periods with the term to commence retroactive to October 16, 2020, and terminate on October 15, 2021, and to adjust the CPI-U increase of 2.3%; and WHEREAS, on August 18, 2021, the BOCC approved the Fourth Amendment to the Original Agreement to renew the term of the Agreement for the third of the five(5)optional one- year periods with the term to commence on October 16, 2021, and terminate on October 15, 2022, and the rental amount was adjusted in accordance annually 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 at December 31 of the previous year of 1.4%; and WHEREAS,on January 21,2022,the BOCC approved a Fifth Amendment to the Original Agreement to abate one-half(1/2)of the monthly rental payment due by Lessee for a partial month 1 of October 2021 and the full month of November 2021, due to Higgs Beach shoreline restoration project closures,which was initiated by the County; and WHEREAS, on September 21, 2022, the BOCC approved a Sixth Amendment to the Original Agreement in which the parties renewed the term for an additional one-year period with the term to commence on October 16, 2022, and terminate on October 15, 2023, and the rental amount was 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 at December 31 of the previous year of 7%, with the total monthly rental payment increasing to Five Hundred Sixty-five and 52/100 ($565.52) Dollars, with an effective date of October 16, 2022; and WHEREAS, Hurricane Ian passed by Key West on September 27 and 28, 2022, causing significant damage to Higgs Beach resulting in the beach being closed to the public; and WHEREAS, said damage rendered Higgs Beach unusable and affected the ability of Lessee to conduct its watersports business on the beach; and WHEREAS, the Lessee has requested the County to abate a portion of its monthly rental payment for October 2022 due to the Hurricane Ian closures; and WHEREAS, Monroe County Board of County Commissioners has agreed to abate a portion of the rental fees while the business was closed because of the significant damage and the beach closure; and WHEREAS,the parties have found the Original Agreement, as amended, to be mutually beneficial; and WHEREAS, the parties find that it would be mutually beneficial to enter into this Seventh Amendment to Lease Agreement; NOW THEREFORE, IN CONSIDERATION of the mutual promises and covenants contained herein, it is agreed as follows: l. In accordance with Paragraph 6 (a), (b), and (c) of the Original Agreement, as amended, Lessee currently paid rent in the amount of Five Hundred Twenty-eight and 52/100 ($528.52) Dollars per month as of the time of the beach closure on September 27, 2022,plus applicable use tax, for retail merchandise or service concession space, with said rental payments due by the first (1") day of the month for which the rent is due. Lessee additionally pays to Lessor 7.5% of its monthly gross taxable sales, and a guaranteed minimum annual fee of 10.125%of its annual gross taxable sales, or the annual monthly rental of Five Hundred Twenty-eight and 52/100 ($528.52) Dollars,plus the total of the 7.5%of the monthly gross taxable sales,whichever is greater. 2 2. Except as set forth in Paragraph 1 hereinabove, all other provisions of the Lease, as amended,not inconsistent herewith, 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. (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA, LESSOR By: By: As Deputy/Clerk Mayor/Chairperson WITNESSES: 1000 ATLANTIC BOULEVARD, LLC, A Florida Limited Liability Comppn , LESStE c. lam/ Signature Title. Managing Partner e,c"d 43kh 11191 zz Print Name Date Print Name Date Signature Print Name Date 11/9/2022 3 i