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6796-01 . . . ~ ORDINANCE NO. 6796-01 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, RELATING TO THE CLEARWATER MARINA BUILDING; AUTHORIZING THE CITY MANAGER TO APPROVE LEASES OF SPACE IN THE CLEARWATER MARINA BUILDING SUBJECT TO CERTAIN CONDITIONS; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Commission has debated for the past decade the delegation of the authority to lease space at the Clearwater Marina building to the City Manager; and WHEREAS, the delegation discussed was for lease terms of three years per tenancy; and WHEREAS, the final determination on the delegation is unclear in the record; BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CLEARWATER, FLORIDA: Section 1. Leases of space in Clearwater Marina Buildinq. The city manager is authorized to approve and execute on behalf of the city leases of space in the Clearwater Marina building (the Marina), except as provided herein, subject to the following conditions and limitations; (1) Term. The maximum term of any lease shall be three years. No lease agreement shall contain an "automatic extension" of the term in any form. The extension or renewal of a lease shall require a new lease agreement. (2) Rental rates. Rental rates shall be generally consistent with the rates for commercial space on Clearwater Beach, and with the rates historically earned by spaces in the Marina. Rental rates may include a flat rate, a percentage of gross revenues, or a combination thereof. The rental of a space for a flat rate or a percentage of gross revenues, or combination thereof, less than one hundred (100) percent of that paid by the prior lessee shall require the approval of the city commission. (3) Rental payments; deposits. Each lease shall provide that rentals shall be paid on the first day of each month and shall be delinquent if not paid on or before the fifth day of the month. Delinquent payments shall bear interest at the rate of 14 percent per annum until paid, plus a late charge of $10.00. At the commencement of each lease, Ordinance No. 6796-01 . . . the lessee shall pay the first month's rent and a security deposit in an amount equal to one month's rent to secure the faithful performance of the lessee's obligations, which deposit may be used to pay for damage to the premises or any other lawful purpose. At the end of the term of the lease, the deposit amount or balance thereof, if any, shall be credited to the lessee's last monthly rental payment. The lessee shall not be entitled to interest earned on the deposit. (4) Use of premises. The premises shall be used only for lawful and proper purposes, and the purposes shall be specified in the lease agreement. (5) Assignment. The lessee shall not assign, sublease, mortgage, pledge, or hypothecate the premises, the lease agreement, or any rights thereunder without the prior written consent of the city manager. (6) Taxes and utility services. The lessee shall promptly pay all taxes levied against the premises or the leasehold interest therein, and all charges for utility services, including but not limited to electricity, water, sewer, telephone, and cable television. (7) Improvements. The lessee may be required to perform improvements to the premises at lessee's cost, subject to approval of the city manager, as may be agreed by the parties. (8) Signs. All signs shall comply with the sign code requirements of the city, and shall be subject to the approval of the city manager, who may delegate the authority to approve signs to the harbormaster. (9) Insurance, hold-harmless, and indemnification. The lease agreement shall require the lessee to obtain liability insurance, with the city named as an additional insured, and to agree to indemnify and save the city harmless from liability for damage to property and injury to persons resulting from or in connection with the lessee's use and occupancy of the premises, other than liability arising from the city's own negligence. (a) Without limiting the generality of the foregoing, the lessee shall indemnify and save the city harmless from any mechanic's liens or other claims which may arise from improvements to the premises, and shall require any contractor performing improvements to the premises to furnish a performance and payment bond assuring the completion of the improvements and the payment of subcontractors and material suppliers. (b) The minimum insurance, hold-harmless and indemnification requirements shall be in accordance with the latest version of the city's risk management guide. (10) Required provisions. The lease agreement shall include a recapture or reverter clause in favor of the city, as required by the city charter; a radon gas notice, as 2 Ordinance No.6796-01 . . . . required by Florida law; and any other clauses or notices required by law or the city charter. (11) Other provisions. The lease agreement may contain such other provisions as are customary in a commercial lease agreement or which are determined advisable by the city manager, as agreed upon by the parties. The inclusion of certain provisions in this section shall not be deemed to exclude other provisions, not inconsistent with this section, to which the parties may agree. (12) Form of standard lease agreement. The city manager shall develop the form of a standard lease agreement, which shall be used in negotiating the lease of spaces in the Marina. Except for those provisions, which are required by this section, the city charter, or Florida law, the standard lease agreement shall be subject to negotiation in each case. (13) Exception. This section shall not authorize the leasing of the space in the Marina occupied by the United States Postal Service as of the date of adoption of this ordinance except upon the approval of the city commission. Section 2. Existinq leases. Nothing herein shall be construed to impair any lease agreement for space in the Clearwater Marina building in existence on the effective date of this ordinance, during the term of such lease agreement. Upon the expiration of such lease agreements, the city manager is authorized to approve and execute on behalf of the city new leases, subject to the conditions and limitations set forth herein. Section 3. Codification. The codification of this ordinance in the city code of ordinances is hereby authorized and directed. Section 4. Effective date. This ordinance shall take effect immediately upon adoption. PASSED ON FIRST READING June 7, 2001 PASSED ON SECOND AND FINAL READING AND ADOPTED Brian J. Aungst Mayor -Commissi Approved as to form: Sfn:~~~an~- - Assistant City Attorney Attest: ia E. Goudeau lerk 3 Ordinance No.6796-01