Item Coversheet

Resolutions - R7  F




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:May  8, 2019
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 1 TO THE LICENSE AGREEMENT DATED MARCH 19, 2018, BETWEEN THE CITY (CITY) AND SOUTH FLORIDA SENIORS IN ACTION, INC. (LICENSEE) FOR USE OF APPROXIMATELY 2,792 SQUARE FEET OF AUDITORIUM SPACE, LOCATED AT 833 SIXTH STREET, MIAMI BEACH, FLORIDA; SAID AMENDMENT: 1) REDUCING THE CURRENT MONTHLY USE FEE, EFFECTIVE MAY 1, 2019, FROM $430.43 TO $215.22 AND 2) WAIVING DISPUTED USE FEE CHARGES, LATE FEES, AND INTEREST DUE THROUGH APRIL 30, 2019, IN THE APPROXIMATE AMOUNT OF $1,750.00.


RECOMMENDATION

The Administration recommends the Mayor and City Commission adopt the Resolution accepting the recommendation of the Finance and Citywide Projects Committee and approving the Amendment No. 1 to the License Agreement, subject to the provisions outlined below.

 

HISTORY

At the February 13 City Commission meeting, Commissioner Gongora sponsored a referral to the Finance and Citywide Projects Committee to discuss modifications to the agreements with South Florida Seniors in Action (“SFSIA”) regarding its use of the South Shore Community Center, located at 833 6th Street (“Center”). 

 

In addition to SFSIA, the City provides space at the Center to various nonprofit and community service organizations that aid the Miami Beach community, including Miami-Dade Community Action Agency, Little Havana Activities and Nutrition Centers of Dade County, South Florida Workforce Investment Board and Lighthouse Church of Miami Beach.

 

Lease Agreement for Use of the Office Space

Since September 2016, SFSIA has leased a 142 square foot office space in the Center for providing various services to the elderly community in Miami Beach (i.e., food distribution, healthcare eligibility, etc.).  SFSIA has exclusive access and control of the office space. At the Center, the City charges tenants $1.20 annually for base rent and only charges specific operating expenses incurred by the City to operate the Center (limited to utilities, maintenance, and janitorial services), which expenses are currently estimated to be $11.06 per square foot.

 

License Agreement for Use of the Auditorium

In March 2018, the City executed a license agreement with SFSIA for non-exclusive use during weekday afternoons of the Center’s 2,792 square foot auditorium. Currently, the auditorium is also utilized by Lighthouse Church of Miami Beach for religious services on Sundays between 9:00AM and 1:00PM and the auditorium was previously utilized by Jewish Community Services for its senior meals program on weekdays between 8:00AM to 2:00PM.  As was the case with JCS, since SFSIA would only use the auditorium on a part-time, shared basis, a license agreement was utilized to formalize the arrangement. 

 

As with the other nonprofit entities that utilize the auditorium, the Mayor and City Commission approved a reduced rent for SFSIA whereby they would only be required to pay based on the Center’s operating expenses, which amount to approximately $11.06 per square foot.  Additionally, the rent would be further reduced, on a pro rata basis, by the days/hours of usage indicated above, in the amount of 20 hours per week.  Utilizing the same formula as in the JCS agreement, this use amounts to 16.7% of a 120 week (24 hours/day times 5 days per week=120 hours).  Accordingly, the pro-rated rate for SFSIA is $1.85 per square foot.  The auditorium measures 2,792 SF, thus the annual rent amount was computed at $5,165.20, or $430.33 per month.

ANALYSIS

SFSIA has asked for waiver of past due rent and a rent reduction going forward.  Following are the basic terms and conditions contained in each Agreement with SFSIA:

 

 

1)    Lease Agreement dated October 4, 2016 (City Commission Resolution No. 2016-29437

 

Premises:      142 SF of office space on the first floor of the Center

Term:              Three (3) years, commencing September 12, 2016 and ending September 30, 2019

Use:                Provide social services to the elderly community

Rent:              $130.88 per month

 

Current Rent Balance: $0.00

 

 

2)    License Agreement dated March 19, 2018 (City Commission Resolution No. 2018-30173)

 

Premises:      2,732 SF auditorium on the first floor of the Center

Term:              Coterminous with Lease Agreement, commencing March 1, 2018 and ending September 30, 2019

Use:                Mondays - Fridays, between 2 PM and 6 PM (nonexclusive and part time)

Rent:              $5,165.20 annually or $430.33 per month

 

Current Rent Balance: $0.00

 

Past Due Balance: Approximately $1,750 (for +/- 5.5 months disputed use fees, late fees and interest - disputed by SFSIA due to construction interference, elections, etc.)

 

Finance and Citywide Projects Committee

This matter was discussed at the Finance and Citywide Projects Committee (FCWPC) at it April 19, 2019 meeting.  The FCWPC recommended in favor of the following:

 

1) The existing Lease Agreement for 142 SF of office space shall remain unchanged

2) The City shall waive all disputed use fees, late charges and interest, due through April 30, 2019 under the License Agreement, in the approximate amount of $1,750.00

3) SFSIA shall pay all remaining past due use fees, due under the License Agreement, in the approximate amount of $1,442.63 

4) Effective May 1, 2019, the monthly use fees due under the License Agreement, for the part-time use of the auditorium, shall be reduced from $430.43 to $215.22 . 

CONCLUSION

The Administration recommends the Mayor and City Commission accept the recommendation of the Finance and Citywide Projects Committee such that the Lease Agreement shall remain unmodified and requiring that SFSIA pay all past due, non-disputed use fees due under the License Agreement through April 30, 2019, in the approximate amount of $1,442.63.  Further, approving the Amendment No. 1 to the License Agreement, said amendment: 1) waiving past due, disputed use fees, late fess and interest in the approximate amount of $1,750.00 and 2) effective May 1, 2019, reducing the monthly use fee from $430.43 to $215.22.

Legislative Tracking
Economic Development
Sponsor
Commissioner Michael Gongora

ATTACHMENTS:
Description
Resolution