A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE ADMINISTRATION AND APPROVING, IN SUBSTANTIAL FORM, A NEW ROOFTOP LEASE AGREEMENT BETWEEN THE CITY (TENANT) AND 5600 CONDOMINIUM ASSOCIATION, INC. (LANDLORD), FOR THE USE OF INDOOR SPACE AND ROOFTOP AREAS, AT THE BUILDING LOCATED AT 5600 COLLINS AVENUE, IN CONNECTION WITH THE USE AND OPERATION OF PUBLIC SAFETY COMMUNICATIONS EQUIPMENT, FOR A TERM OF TEN (10) YEARS, WITH THE POSSIBILITY OF EXTENDING FOR FOUR (4) ADDITIONAL FIVE (5) YEAR RENEWAL TERMS UPON AGREEMENT OF THE PARTIES, FOR AN INITIAL ANNUAL RENT OF $25,000, SUBJECT TO ANNUAL RENT ESCALATIONS OF THREE PERCENT (3%) THEREAFTER; AND, FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AGREEMENT.

BACKGROUND

For several decades, the City has used certain privately-owned condominium towers (e.g. Council Towers, Parkview Point, Tower 41, Rebecca Towers) for the location and operation of public safety communications equipment, which infrastructure is critical to the essential functions of the City's law enforcement and public safety personnel.

In 2017, pursuant to RFP 2017-006-AK, the City contracted with Florida-based Harris Corporation to replace the City’s aging public safety radio system.  In accordance with the Harris Corporation contract for updating the public safety communications equipment and related infrastructure at these private towers, the City is ensuring that lease agreements with the private properties exist in order to protect our network infrastructure throughout the life span of the new equipment. 

The Harris Corporation has identified 5600 Collins Avenue as an ideal location for an additional  Facility, which is necessary to accommodate growth in the City's needs since the system was first introduced in the 1980s. 

In ongoing efforts to execute the Harris Corporation contract and update the communications network, the Administration is negotiating an agreement with the new property, a draft of which accompanies this Memorandum (Attachment A).  The terms and conditions in the draft agreement are similar to those contained within the executed lease for another Facility located at 4101 Pine Tree Drive (a/k/a Tower 41), as approved by the City Commission in Resolution No. 2018-30272.

The key terms of the agreement with 5600 Condominium Association Inc. are:

• EFFECTIVE DATE:       Upon execution following Commission approval and final negotiation.

• TERM:      Ten (10) years, with four (4) additional five (5) year renewal terms.

• TERMINATION FOR CONVENIENCE:  City has exclusive right to terminate upon 90 days notice.

• RENT:    $25,000 annually, with annual increases of 3% per year beginning the second contract year. (The total amount is approximately $286,596.98 over ten (10) years).

This property was specifically identified by the Harris Corp. and selected by the Fire Department’s Public Safety Communications Division for development of a new Facility.The negotiated rental payment reflects the market rate value of rooftop space for commercial cellular telephone operators at this desirable location along the Collins Avenue corridor.To that end, the agreement contains adequate assurance for continuous operation of the City’s public safety communications equipment at the property, including unrestricted access by City personnel to the leased premises, exclusive (access controlled) use of the equipment room storage area, and installation of a private generator for backup power during an emergency event.

Execution of this lease agreement and installation of a Facility at the subject property is a required component of the system-wide modernization of its public safety communications network. Given the importance of ensuring the delivery of services which provide for the health, safety, and welfare of the general public, the Administration recommends that the Mayor and City Commission authorize execution of the negotiated lease, contingent upon review and approval by the City Attorney.