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HomeMy WebLinkAboutItem 05 Approval of Change to Lease AgreementMeeting Date: November 18, 2025 Item #: 5 Contact Name: Kiel Gajadhar, Stephen Krug Department Director: Stephen Krug Contact Number: Ext. 7002, Ext. 6002 City Manager: Craig Shadrix Background Summary: On November 5, 2024, the City Commission approved a 3-year lease agreement with Holiday Outdoor Decor for the City's pole -mounted holiday decorations in the amount of $186,805, annually. The terms of the lease include verifying the decoration's functionality, installation, removal, and storage. Holiday Outdoor Decor has traditionally provided the City's holiday lights and banners on existing utility poles, whereas Duke Energy has provided electrical connections throughout the City. With the Clarke Road widening project complete, electrical connections have been added to an additional 100 light poles on Clarke Road from Silver Star Road to Clarcona Ocoee Road to allow for pole -mounted holiday lighting. With prior City Commission authorization, the additional 100 decorations increased the lease agreement by $98,750 with a total cost of $285,555, which is adequately incorporated into the current 2025- 2026 budget. Public Works recommends approval of a change to the lease agreement with Holiday Outdoor Decor to include the additional 100 decorations on Clarke Road. Issue: Should the Honorable Mayor and City Commissioners approve a change to the lease agreement with Outdoor Holiday Decor, and issue a purchase order for the installation, removal, and storage of the City's selected holiday decorations, which are incorporated into the current 2025-2026 budget? Recommendations: Staff recommends the Honorable Mayor and City Commissioners approve the lease agreement with Outdoor Holiday Decor. Staff also recommends issuing a purchase order in the amount of $186,805 for the installation, removal, and storage of the City's selected holiday decorations, and authorizing the City Manager and staff to approve and execute change orders to the work in accordance with the limits established in the Purchasing Code. Attachments: 1. New Combined Quote 2. Lease Agreement Page 138 of 356 Financial Impacts: The cost of the pole -mounted holiday lighting is adequately funded in the 2024-2025 budget. Type of Item: Consent 0 o Em 0 %* �_, I - I r#111111 Page 139 of 356 Remit to Holiday Outdoor Decor PO Box 4365 Bethlehem, PA 18018 Bill To Name Stephanie Thomas Bill To City of OCOEE 301 Maguire Road Ocoee, Florida 34761 United States If Approved, Sign here or reply to the email stating "Proposal Approved", '40wMan Cf6ftso"40ship in EV44Y Space Ship To Name Ship To 11/10/2025 00021497 City of OCOEE 301 Maguire Road Ocoee, Florida 34761 United States Subtotal $285,555.00 Not including Sales Tax We will not be able to schedule your project before receiving your down -payment - our schedule fills up fast, don't wait! Asia Snowflake Pole Mount, Blue 4.9 x 1.9 THESE ARE TO BE PLACED ON MAGUIRE ROAD - 2 PER includes Backbone (with 1 faceplate, 3 silver $327.50 52.00 $17,030.00 POLE MOUNTS PER POLE ONE ON EITHER SIDE bands) Whimsical Z-Tree. Measures 5'xT, With 52 INSTALL ON 22 NEW POLES ON BLUFORD AVE C-9 Lamps. Weighs 35lbs. LED Single Poinsettia Pole Mount. Measurs i:7aTrips—w4 Accents, Weighs 23lbs. LED OCOEE, CITY OF - 2025 LEASE Irr !1 MEMO$= off$ I =## I PAYMENTS: Deposit payments of 50% due prior to September 1 at, to be placed on installation schedule, final 50% payment due upon completion of installation of each season under contract. Any product purchases will be invoiced when products shipped from vendor, Page 140 of 356 regardless of delivery location. Balances over 3Bdays will incur a 1,5% finance charge per month. 4% Credit Card payments fee, Sales Tax and County Tax will be applied on Final Invoice unless a Tax -Exempt Certificate is provided beforehand. ACCEPTANCE: All material imguaranteed to be as specified, All work to be completed inaworkman like manner according to standard practices, Any alteration or deviation from the above specifications involving extra costs will be executed only upon written orders and will become an extra charge over and above this contract. All agreements contingent upon strikes, accidents, any acts of God or delays beyond our control, Property Owner will carry fire, tornado, hurricane (wind) and other necessary insurance, Our workers are fully covered byWorker's Compensation, The above prices, specifications, terms and conditions are satisfactory and hereby accepted, You are authorized to do the work as specified, Payment will bemade msoutlined above. Once this Agreement is signed by both parties it becomes a contract. This proposal may be withdrawn if not accepted within 30 days. To lock in current pricing, please ask for a multi -year proposal. Customer Awareness Information Sheet ' Page 141 of 356 MULTI -YEAR LEASE AGREEMENT 'I'll is represents an agreement between RILEIGHS OUTDOOR, LIX., doing business as Clarks Outdoor Decor arid. also, as Christmas Designers Florida, and, also as I ioliday Outdoor Decor (hereinafter referred to as "Lessor"), and the City ofOcoce. a Florida municipal corporation (hereinafter referred to as the "Lessee"). The accompanying Proposal (the "Proposal") and this Lease (the proposal and the Lease collectively referred to as this "Lease" or "Lease Agreement") comprise the entire agreement between the parties,, and supersede all prior or conternporallCOLIS Understandings, agreements, negotiations, representations and warranties, and 401111111,11lications, both written and oral. In the event of any conflict between this Lease and the proposal, this Lease shall govern. This Lease prevails over any of Lessee's general terms and conditions regardless of whether or when Lessee has submitted its request for proposal, order, or such terms. Provision of set -vices to Lessee does not constitute acceptance of any ofLessee's terms and conditions and does not serve to modify or amend this Lease. It is understood that the Lessee Of Ocoee will issue purchase orders with Lessee terms and conditions on a yearly basis. This Lease OLitlilICS the terms and conditions under which the Lessee shall lease outdoor decor products (hereinafter referred to as the "Product") from Lessor for a period of three (3) years, as specified in this agreement. The Lease also governsTernis and Conditions for the services provided by the Lessor necessary to fulfill the obligations outlined in the Proposal (hereinafter referred to as the -Work"). By signing this document, both parties acknowledge and agree to abide by the terms and conditions set forth herein, 1. LEASETERM AND PRICE The lease contract shall be effective for a period of three (3) years, commencing from 10/23/2024 to 10/23/2027. The total lease contract price for the specified duration shall be $560A 15, with an annual lease price of'$l 86,805 payable each year. I. I Each one-year term shall automatically be renewable for the next succeeding one-year term with the condition that the LESSEE'S obligation to pay under this Lease for each year is contingent upon the LESSEE in its good faith judgment having sufficient funds to make all annual appropriation for the Services to be provided under this Lease. Ili the event LESSEE does not allocate funds for a lease year, the Lease will be terminable by written notice from Lessee to Lessor. The Lease shall Condone it) full force and effect from the date first written above or until terminated in accordance with this Lease. 1.2 The Lessee and Lessor agree that Eby .3igning this agroemem, all material and work provided by Holiday Outdoor Decor shall conform 10 tile specifications outlined in the attached Proposal and any alterations or deviations involving extra costs shall only be executed upon written orders executed by Lessor and Lessee and shall be considered all additional charge to this contract on terms acceptable to both pat -ties. The Lessee acknowledges that the Lease is for the, Product 011flined in the accompanying Proposal. Any changes to the product in the proposal must be agreed to in writing by the Lessor and Lessee. Page 142 of 356 2. OWNERSHIP OIL PRODUCT During the duration of the Lease and after the lease contract expires, Lessor shall retain ownership of all products used. The Lessee agrees to use the products with care and in accordance with standard practices and shall not cause any damage or misuse that may reduce their value or operability. 3. LESSET OBLIGATION: Lessee shall: a. cooperate with Lessor in all matters relating to the Work and provide such access to Lessee's premises, and such office accommodation and other facilities as may reasonably be requested by Lessor, 1`01- the PUrPOSeS of performing the Work, h. respond promptly to any Lessor request to provide direction, information, approvals, authorizations or decisions that are reasonably necessary for Lessor to perform the Work in accordance with the requirements of this Lease; C. Provide such Lessee materials or information as Lessor may reasonably request to carry out the Work in a timely manner and ensure that such Lessee materials or information are complete and accurate in all material respects; and d. obtain and maintain all necessary licenses and consents and comply with all applicable laws in relation to the Work before the (late on which the Work is to start. 4, LESSEE'S ACTS OF OMISSION If Lessor's performance of its obligations under this Lease is prevented or delayed by any act or omission of Purchaser or its agents, subcontractors, consultants or employees, Lessor shall not be deemed in breach of its obligations under this Lease or otherwise liable for any costs, charges or losses sustained or incurred by Purchaser, in each case, to the extent arising directly or indirectly from such prevention or delay, 5. CHANGE ORDERS a. if either party Nvishes to change the scope or performance of the Proposal., it shall submit details of the tcqUe-,ted change to the other party in writing. Lessor shall, withinreasonable time after such request, Provide a written estimate to Lessee of: b. the likely time required to implement the change, c. any necessary variations to the fees and other charges 1`61- the Products or Work arising from tile change; d. the likely eff'oet of the change on the Proposal; and e. any other impact the change might have on the performance of this Lease. f, Promptly after receipt of the written estimate, the parties shall negotiate and agree in writing on the terms of Page 143 of 356 such change(a *Change Order"), Neither party shall be bound by any Change Order unless Mutually agreed upon in writing. 9. Notwithstanding Section 6(a) and Section 6(b), Lessor inav, from time to time change the Product Or Work without the consent of Lessee provided that such changes do not materially affect tile nature or scope, of the Lease, or the fees or any performance dates set forth in the Order Confirmation. 6. WARRANTIESAND DISCLAIMI--"R Lessor represents and warrants to Lessee that it shall perform the Work using I I u c K, PCI'S0111 C1 Of Vq it, d skiff, , experience, and qualifications and in a professional and workmanlike manner in accordance with generally recognized industry standards for similar services and shall devote adequate resources to meet its obligations under this Lease. -File Work shall be provided ill accordance in all material respects with Lessee's specifications, and Lessor shalt not be liable for tolerances and variations from specifications consistent with usages of the trade or for normal manufacturing defects. There are no express warranties other than the warrant), set forth above. Ally implied warranties, including any implied warranties ofirlerchantabilitly or fitness for a particular purpose, are disclaimed. T FORCE MAJEURF Neither party shall be liable to the other for failure to perform or for delay in performance due to unforeseen causes beyond its reasonable control, and such causes are vvithout the failure or negligence of the affected party. Such unforeseen Causes include, but are 1101 limited to, acts of God, fire, flood, epidemic, strike, Nvork stoppage or other labor difficulty, acts of governmental authority, federal, state, or local laws, orders or regulations, embargo, war, terrorist act, riot, civil commotion and/or insurrection, or by any other event or circumstance of whatsoever kind Or nature not within the control of the affected party which, by exercise of reasonable diligence such party is unable to prevent, whether or not similar or dissimilar to any of the foregoing class of events or circumstances ("Force Majeure Event"). For the avoidance of doubt, economic hardship of all affected party shall not be considered a Force MajeUre Event. 8, TERMINATION 8, 1. Early Termination by Lessor: "The Lessor reserves the right to terminate this Lease Agreement with immediate effect ill the event of tile, following cirCUMStanCeS: a. Non -Payment: If the Lessee fails to make any rental payment within 30 days from the due date specified in this Lease Agreement. b. Breach of Terms: if the Lessee violates any provision of this Lease Agreement. including but not limited to the permitted use of the equipment, maintenance responsibilities, or insurance requirements. Page 144 of 35,6- c. Deleted. d, Misuse or Damage: If -the equipment is being used improperly, abused, or darnaged due to negligence, which may lead to a significant redUCti011 in its value or operability. c. Endangerment: If the equipment is being Used in a manner that poses a risk to public safety or violates, any laws or regulations. 8.2, Early Termination by Lessee: The Lessee may terminate this Lease Agreement before the expiration orthe agreed -upon lease terill Under the following conditions: a. Termination Notice: The Lessee shall provide a written termination notice to the Lessor at least 90 days in advance of each calendar renewal year. b, Deleted. c Termination for Cause: 'FlieLessee reserves the right ht to terminate this Lease Agreement for cause in the following circumstances: i. Lessor's Breach: If the Lessor fails to fulfill its obligations as outlined in this Lease Agreement, and such breach remains Unren-iedied for a period of 60 days after receiving written notice from the Lessee specifying the breach. ii, Equipment Defects: if the equipment provided by the Lessor becomes defective or inoperable despite the Lessee's reasonable efforts to maintain it, and the Lessor fails to replace Nvith same or similar equipment ofequivalent value, or repair the equipment within a reasonable time. 83, Return of Equipment; Upon termination, the Lessee shall promptly return the equipment to the Lessor's designated location in good condition, ordinary wear and tear excepted. Page 145 o-f-1356 - lit - oblii�ali011 under this Lease Agreement 8,zL NO Further Liability: 'file Lessee shall have no further ability or after the effective date of termination, except for any allIOLHAS owed to the Lessor tip to the termination date. 8.5 Survival of Certain Provisions: The termination of this Lease Agreement shall not affect any rights Or obligations that, by their nature, should survive termination, including but not limited to the provisions relating; to indemnification, governing law, and jurisdiction. 9. MAINTFNANCE, STORAGE AND REPAIR During the lease term, the Lessor shall be responsible For the regular maintenance and care of tile leased equipment. This includes but is not limited to out -of -season storage, cleaning, and any necessary servicing as C, recommended by the equipment's manufacturer. 10. PAYMENTS A 30% deposit will be required before installation. 50% of payment will be invoiced after installation, filial 20% payment due upon completion of tear down. Any product purchases will be invoiced when a Product is shipped from vendor( if being seat to the Lessee) or produced and put in inventory (if the Lessor will hold the purchased products), regardless of delivery location. Balances over 30 days will incur a 1 .5% finance charge per month. Sales Tax and County Tax will be applied on Filial invoice unless aTax-Exempt Certificate is provided beforehand. 11. INDEMNIFICATION Indemnification by the Lessee: The Lessee agrees to indemnity, defend, and hold harmless the Lessor, its officers, directors, employees, and agents from and against any and all claims, liabilities, damages, losses, costs, and expenses (including reasonable attorneys fees) arising out ofor in connection with the Lessee's use, Possession, maintenance, or operation ofthe leased equipment during the lease term. The Lessor agrees to indemnify, defend, and ]told harmless the Lessee of Ocoee, its officers, directors, employees. and agents from and against any and all claints, , liabilities, damages, losses, costs, and expenses fr (including reasonable attorney's fees) arising out of or in connection with the Lessor's actions, performance, or failure to perform under this a_,.,Mcj'ncnt., including but not limited to any defects in the leased equiplilent or `,et"Vicel, provided. 12. LIMTATION OF LIABILITY In the event that Lessee has any claim against Lessor arising Out Of, Or Nlatilh,)' to, goods and/or services delivered by Lessor to Lessee, or the non -delivery of goods and/or set -vices otherwise, Lessor' exclusive and sole 6/3 Page 146 of,3,516 liability shall be limited, as Lessor's option, to either the replacement of the goods and/or services at the original point of delivery or the return of the sales price of tire goods and/or services with respect to which the claill, is made or any other remedy allowed by this Lease or at law including. without limitation, termination of This Agreement. Under no circumstances shall Lessor, its parent, subsidiaries and affiliates be liable for any incidental, indirect, special, punitive Or consequential damages (including anticipated profits or revenues). In no event shall Lessor' aggregate liability arising out of or related to this Lease, whether arising out of or related to breach of contract, tort (including a al ', negligence) or otherwise, exceed the aggregate amount paid or le P y, ) to Lessor pursuant to the applicable Proposal out of which the claim arose. The Lessor shall, at its own expense. obtain and maintain dUring, the Wrin of this agreement, insurance coverage that meets or exceeds the Lessee's standard insurance covet -age amounts. This coverage shall include, but is not limited to, general liability insurance., automobile liability insurance, and workers' compensation irISUrance, The Lessee of Ocoee shall be named as ail additional insured under the general liability policy. Lessor shall provide the Lessee with a certificate of insurance evidencing the required covet -age before the commencement of any work or delivery of leased equipment Under this Lease. 13. ASSIGNMENT Lessee shall not assign any of its rights or delegate any of its obligations Under this Lease without the prior written consent of Lessor. Any purported assignment or delegation in violation of this Section is null and void. No assignment or delegation relieves Lessee of any of its obligations under this Lease. lit the event Lessor assigns this Lease, Lessee reserves the right to terminate this Lease in writing, 14. SEVERABILATY If any term or provision of this Lease is invalid, illegal or unenforceable in any jurisdiction, SLIC.11 invalidity, illegality or u nenforceabi lit), shall not affect any other term or provision of this Lease or invalidate or render unenforceable such term or provision in any other jurisdiction. 15. AMMENDMENTAND MODIFICATION This Lease may only be amended or modified in a writing, which specifically states that it amends this Lease and is signed by an authorized representative of each party. p P4) e 147 of 356 RILEIGH'S OUTDOOR, LLC. dba Clarks OUtdoor Decor, dba Holiday Outdoor D6cor, dba Christmas Designers Florida CIN-r Title --PI-3 �z um- ATTEST: Melanie SibbittL, City Clerk (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY this day of , __q, Lj� 2024 a 11 mvvKwv a CITY OF OCOEE, FLORIDA RUStVj0111 on, ,or DATE: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD 2024 UNDER AGENDA ITEM NO.-11�t—, Page 148 of 356 Company Address PO Box 4365 Bethlehem, Pennsylvania 18018 United States Prepared By Shannon Magee Email -,niag(4ci@fioli(layot,jtdoor(It,,coi,cotii Bill To Name Stephanie I hornas Bill To City of OCOEE 301 Moguire Road Oco6e, Florida 34761 United Stites Quote To United States NTH Referral Created Date 1012W2024 Expiration Date 12/31/2024 Quote Number 00017404 Bill to Phone (407) 905-3 170 Email Ship To Name Stephanie, Thomas, Ship To C fly of OCOEE 301 Magnirp, Road Ocoee, Florida 34761 United States Ship To Phone 407-905-3170 Asia Snowflake Pole 1 THESE ARE TO BE PLACED Asia Mount, Blue 4.9 X 1.9 ON MAGUIRE ROAD - 2 PER 1 $327,50 52�001 $17,030�00 LSE-PM-SLB-DSAS59-8 Snowflake i includes Backbone (with I POLE MOUNTS PER POLE i Pole Mount faceplate, 3 silver bands} ONE ON EITHER SIDE ITHESE ARE TO BE PLACED Grand Mia Snowflake, ON sil-VER STAR ROAD, .3 Grand Mial P0401 mount, Blue & Cool WORST RD, CLARK RD, AD $ 987.50 162M $159,075,00 LSE-PM-SL1B-DSGM78-1CW Snowflake White &5 'k 6.5 iricludes, M MS RD, TAYLOR ST, Backbone (with I FRANKLIN ST AND OCOEE 1 faceplate, 3 silver ban( is) APOPKA Rid Whimsical Z-Tree. -T Me 4 1)2 Z' x lith 52 ! Measures 5'xT. ',A INSTALL ON 22 NEW POLES 1 $200.00 iff.00 $7,600.00 LSE -PM-SLB--'7'F8,1 '5 Ins LED 1 C-9 Lamps. Weighs 35lbs. ON BLUFORD AVE P121 1 LED Poinsettia Wills Stern 31 Poinsettia With Stern 3,5,x 112 x 5-1/2 26 INSTAL L SMALL POLES $20UW 6,00, $1,200.00 LSE-PM-SLB-PWS66 6,5 26 lbs. 59 C-7 I Account Terms DUE UPON RECEIPT QUOTE ACCEPTANCE INFORMATION Sig nature 0 Contract Price is per year & Annual Lease, Installation, Retrieval, ane Storage ® We do ilat (to any electrical work, other than plugging Into existing outlets. This also includes resetting GFCI breakers that pop due to niolsture, rain or sprinklers * Custom Iferns are NOT returnable a 4% Credit Car(] payments fee 0 After Account Terms (in(, dnte� a monthly interest charge of 1.5r', will ho added or! JX)St out' accouats (18% APR) 0 Applicable Sales I'ax will be added to Final Invoice Page 149 of 356-- - QUOTE Aom,,Iml cfattso"Ship in rVety Space lbs.---LED L,9ml)s----LED Mcl<iEY ST P232 LED Single Single Poinsettia P110 Poinsettia 5 x 1 Mount. Measures 5'x5.5', I I INSTALL SMALL POLES L.SE-PM-SLED-SPA66 fi 112 23 tbs. I With 49 C-9 Larrips and 1 $20000 5,00 j $1,000.00 I ----LED Garland Accents. Weighs MCKEY ST P230LED 23lbs. LED Subtotal $186,805.00 Total Price $110,805,00 Grand Total $ i 86,805 100 LeaseTerms, and 6onditions Holiday Outdoor Decor shall comply with the specifications above. All work shelf be completed in as protessional manner according to standard industry practices. Modifications to the above specifications may Incur additional costs and will require an oxeruted change order. Holiday Outdoor Decor shall not be responsible for any failure or delay caused by any reason beyond its control. Owner shall have, sole responsibility to insure itself and its property against damages or injury. HOLIDAY OUTDOOR DECOR SHALL NOT BE LIABLE FOR ANY INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT, NOR SHALL IT BE LIABLE IN ANY WAY WHATSOEVER FOR DAMAGES UNLESS DIRECTLY CAUSED BY HOLIDAY OUTDOOR DECOR NEGLIGENCE OR MISCONDUCT. IN NO EVENT WILL HOLIDAY OUTDOOR DECOR BE LIABLE UNDER THIS AGREEMENT FOR ANY AMOUNT WHICH EXCEEDS THE VALUE OF THIS PROPOSAL, For our complete Terms and Conditions, please click here or visit https: Uh o I to ayo utd o orde cor. cornito rms-conctitionsl Account Terms DUE UPON RECEIPT Sir) Contract Price is per year Annual [-ease, Installation, Removal, and Storage We do not do any electrical work, other than plugging into existing outlets. This also includes resetting GFCI breakers that pop due to moisture, rain or sprinklers Custom Iterm; me NOT returnable 4% Credit Card payments fee After Account Tenns due (late, a monthly interest charge of 1 .5% will be added on past due account,,, (18% APR) Applicable Scales Tax will be added to Final Invoice QUOTE ACCEP FANCE INFORMATION Page 150 of 356