A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, A NEW ROOFTOP LEASE AGREEMENT BETWEEN THE CITY (TENANT) AND FIFTY SIX SIXTY COLLINS AVE CONDOMINIUM, INC. (LANDLORD), FOR THE USE OF INDOOR SPACE AND ROOFTOP AREAS, AT THE BUILDING LOCATED AT 5660 COLLINS AVENUE, IN CONNECTION WITH THE USE AND OPERATION OF PUBLIC SAFETY COMMUNICATIONS EQUIPMENT, FOR A TERM OF TWENTY (20) YEARS, WITH THE POSSIBILITY OF EXTENDING FOR FOUR (4) ADDITIONAL FIVE (5) YEAR RENEWAL TERMS, FOR AN INITIAL ANNUAL RENT OF $35,000, SUBJECT TO ANNUAL RENT ESCALATIONS OF THREE PERCENT (3%) THEREAFTER; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED LEASE AGREEMENT.

The Administration recommends the Mayor and City Commission authorize execution of the final, negotiated lease.

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 that 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. The 2018 G.O. Bond referendum approved funding to replace the City’s outdated Motorola analog radio system with the Harris Corporation’s satellite radio system. The upgrade will give first responders a state-of-the-art emergency communications technology network with high tech functions like seamless interoperability and encrypted data. As part of the process, the City is ensuring that lease agreements with the private properties protect our network infrastructure throughout the equipment’s lifespan. 

In order to integrate and equip a new building location into the system network, the City requires (1) rooftop space for equipment such as antennas; (2) an enclosed room for radio communications equipment; (3) transmission lines between the rooftop space and the equipment room; and (4) installation of a permanent generator to provide power in the event of an outage.

In order to support the network upgrade, installation of a new facility is required specifically along the Collins Avenue corridor in mid beach. On April 10, 2019, per Resolution No. 2019-30767, the City Commission authorized a rooftop lease agreement with a neighboring property located at 5600 Collins Avenue. This proposed site had to be abandoned when our consultant determined that physical constraints with the property would require construction of a rooftop shelter at a cost to the City of at least $300,000. As a result, the lease was never executed, and the City was forced to locate an alternative location for the facility.

The Harris Corporation has identified 5660 Collins Avenue as the preferred alternative site along the Collins Avenue corridor. The City has negotiated terms with the building's condo association, as contained in the draft agreement accompanying this memorandum (Attachment A).   The proposed terms and conditions are similar to those contained within the executed lease for the network facility located at 4101 Pine Tree Drive (a/k/a Tower 41), as approved by the City Commission in Resolution No. 2018-30272.

The essential terms of the agreement include:

• LEASED PREMISES:  5660 Collins Avenue

• LANDLORD:  Fifty Six Sixty Collins Ave. Condominium, Inc., a Florida nonprofit corporation

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

• TERM:  Twenty years, with four additional five year renewal terms.

• TERMINATION FOR CONVENIENCE:  City has exclusive right to terminate without cause upon 180 days notice.

• RENT:  $35,000 annually, with annual increases of 3% per year beginning thesecond contract year. (The total amount is approximately $940,000 over the twenty year initial term).

• UTILITIES: City shall submeter and pay for its own power consumption. In the event of a power outage, landlord is entitled to 50kw from City’s permanent generator. Landlord shall reimburse a pro rata share of the City’s costs for fuel, maintenance, and operation of the generator.

In comparison, the proposed lease for the adjacent property at 5600 Collins Avenue, which was approved by City Commission in April 2019 but abandoned when it became logistically and financially impractical, contained $25,000 annual rent with 3% annual increases over a 15-year term. The most recent rooftop lease to be executed, Tower 41, contained $20,000 annual rent with 4.5% annual increases and a 15-year initial term. Although the lease for your consideration today contains a slightly higher annual rent and the provision of generator capacity to the landlord, the site is virtually ready for occupancy and contains a longer lease term.

In contrast, the previous property on Collins Avenue would have required the construction of a rooftop equipment shelter at a minimum cost of $300,000. After scouting multiple locations, the Fire Department’s Public Safety Communications Division has emphasized the necessity for this location because the property is the preferred site on Collins Avenue to serve the network. Further, lease execution is the last step remaining before implementation of the public safety project, which is considered as a G.O. Bond “quick win.” All costs associated with initial installation of the facility, including any building modifications, equipment, and installation, will be covered by funds already approved and allocated as part of tranche 1 of the G.O. Bond. Ongoing costs associated with the lease in subsequent years, like equipment maintenance and annual rent, will be budgeted by Fire on an annual basis.

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