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HomeMy WebLinkAboutM-86-0714r ) LAW OFFICES SPARBER, SHEVIN, SHApo, HiEILORONNER St Boots Pt70FFSS10NAL ASSOCIATION 1. BARRY BLAXISERG RONALD L. BOOK CHARLE9 A. CITRIN EDWARD HFILBRONNER URSULA MANCUSI-UNGARO HOWARD E, ROSKIN R0I9ERT L. RUBIN RONALD A. SHAPO ARNOLD D. SHEVIN JEROME H. SHEVIN ROBERT L. SHEVIN STEVEN SON13ERG BYRON L. SPARSER STEPHEN A. STIEGLITZ SETH STOPEK ARTHUR E, TEELE, JR. JEFFREY M. WEISSMAN JAMES H. BARRETT RICHARD 1. BLINDERMAN JOSE A. BOLANOS FRANCISCA COPELAND'LOPEZ MICHAEL J. CONIGLIO BRIAN S. DFRVISHI MARTIN E. DOYLE GREGG FIERMAN ALAN J. FRIEDMAN PAUL A. GOLDBERG MOISES T. GRAYSON SANDRA P. GREENBLATT DAVID B. HABER MICHAEL E. HILL MICHAEL KOSNITZKY ELIO F. MARTINEZ, JR. JAMES A. MINIX Submitted into the public D. JUSTIN NILES GARY S. PHILLIPS LAWRENCE M. PLOUCHA MARK T. REEVES MARSHA C. ROSEN GARY R. RUTLEDGE NANCY SCHLEIFER ELIZABETH SCHWASEDISSEN SEYMOUR N. SINGER GREGG S. TRUXTON GLENN J. WALDMAN ROBERT T. YOUNGS GERALD D. KISNER • OF COUNSEL L. A."SKIP' BAFALIS GOVERNMENTAL AFFAIRS CONSULTANT • ADMITTED IN OHIO L WASHINGTON, D. C. record in connection with item_. L, on �" �' September 8, 1986 j Matty Hi:cd City Cle:k The Honorable Xavier Suarez, Mayor and Representatives of the City Commission City of Miami P.O.Box 33078 Miami, Fla. 33131 Dear Mayor and City Commissioners: I AMER1 IRST 6U11_DING ONE SOUTHFA9T THIRD AVFN F_ MIAM1, FLORIDA 33131.174SS TELEPHONE (305) 3 47.4700 TELECOPIER 347.4669 FORT LAUDERDALF 324.0209 NORTH BROWARD 781.9591 TELECOMMUNICATIONS 347-4699 TELEX 1 51 - 060021131 TELEX EASYLINK 62899002 TALLAHASSEE OFFICE 315 SOUTH CALHOUN STREET BARNETT BANK BUILDING • SUITE 348 TALLAHASSEE. FLORIDA 32301 TELEPHONE (904) 681.7051 TELECOPIER 224.2784 IREPLY TO MIAMI OFFICR WRIT[R'8 DIRECT 347-4772 SEP I�0 KJB6 IIp I am writing this letter to you as an individual citizen and resident of Dade County, and not on behalf of my law firm. I am a boat owner and frequent user of Biscayne Bay and its surrounding waters. I routinely use the services of Merrill -Stevens Dry Dock Company in Coconut Grove. I urge you in consideration of the use of the property upon which Merrill -Stevens is located, to retain its use as a full service marina/boat yard operated not by the City but by a competent pricate operator. The City is simply incapable of managing and operating the property as a yard for the technical repair of pleasure boats. Biscayne Bay is among the few great bodies of protected boating waters in the world. The absence of convenient service in Miami for boaters is a shameful waste of industry so appropriate for the area, particularly the Coconut Grove waterfront. My boating companions (many of whom live in Broward County and north, but keep their boats alongside Bay waters) often look to service in Ft. Lauderdale and elsewhere because services are simply not available in Miami. That means lost revenues and employment opportunities for Dade County and the City of Miami. 1 L `3 �-*71`q ,. _... F4 The Honorable Xavier Suarez, Mayor Representatives of the City commission September 6, 1986 Page 2 urge you to retain the present use of the property by the best and most competent private operator unAer the best terms and conditions obtainable by the City of dMia n 1 yours, i L.Aw, OFFICES Q SPARSER, SHEVIN, SKAP O, HEILBRONNER 8e BOOK , PROFESSIONAL ASSOCIATION /a�'�1 '�• 30T- FLOOR AMERIFIRST BUILDING .ONESOUTMEAST THIRD AVENUE r! ��� MIAMI; FWRIDA'23131-1766 . The Honorable Xavier Suarez, Mayor and Representatives of the City Commission - SP10 JOHN G MCMILLIAN SUIT! A00 F. OFFICE IN THE GROVE '. 24599 SOUTH 19AYSHORE DRIVE COCONUT GROVE, FLORIDA 33133 TELEPHONE (3031 a54-0053 September 9, 1986 The Honorable Xavier Suarez, Mayor and Members of the City Commissions City of Miami P.O.Box 330708 Miami, Florida 33133 Re: Dinner Key Boat Yard Service Area Dear Mayor Suarez and Members of the City Commissions: I understand that the city is considering eliminating the Merrill Stevens Boat Yard operation at Dinner Key. A lot of us live in this ` area because we are interested in boating and yachting and own boats 7 that need service and storage. The quality places available to have your boat repaired today are limited, and to lose a fine organization Y such as Merrill Stevens Boat Yard would be a very serious blow to ; the yachting community. To turn this area into another restaurant or bar would make a large "Honky Tonk" area out of Dinner Key and is unacceptable to the decent citizens of this community. I moved to Florida because I was interested in boats and the ocean and would hate for you Mr. Suarez and the Commissioners to force me to move to another area, but, if you do decide to make a "Honky Tonk" area out of Coconut Grove and Coral Gables that is exactly what I will do. Very truly yours, Y ohn G. 13 Submitted iata tine public record in "AnOction with matty az 86- 714 City Clem U n IV 200 S. W. 50 `Ave. Miami, Fla. 33134 Sept. 8, 1986 Mayor Xavier Suarez City of Miami P.O. Box 330708 Miami, Florida 33233-0708 Dear Mayor Suarezi As per the enclosed Ltiiitorial from the Niami Herald of July 31, 1986 and having attended the City Commission meeting of July 24th. at which this particular insurance policy was discussed by yourself and Comm. tosario Kennedy, as a Eiami taxpayer, we certainly do hope that you and all the other commissioners will take a godd hard look at this extremely high priced ins. policies, along with the included high cost of the insurance agents commission on this pexticul.ar deal. With the upcoming City of Miami budget hearings these policies need a long hard look in order to be fiscally responsible to the Idami taxpayers as most of them could not afford these high priced insurance coverages after paying the high cost of taxes for the dubious privilege of living in the city of Ydami. Money for these premiums could perhaps be put to better use for many other benefits needed for Miami, rather than high priced insurance policies to cover our elected officials who also would own these policies once they leave office, which sure)y is not right. hopefully this matter will be corrected to the taxpayers satisfaction and without the Cadillac of ins. policies coverage. Also in view of the enclosed news item regarding the many problems at the Dinner Key Marina it would seem that City Manager Cesar Odio would not wish to take on the additional problems of trying to run the repair service currently handled at the KerrillStevens boat repair service company. If the Dinner Key Marina is having all-tihese problems, what would happen if the city were to take over the repair of and storage of boats now being so capably handled by Dierril Stevens. I am not a boat owner so do not have any interest in MerrillStevens one way or the other but I can well imagine what would happen if the city were to take over that business andhandleit as poorly as the repairs and improvements to the Dinner Key Marina. At the City Commission meeting it was told that the Dinner Key was a money making proposition for the city. The enclosed article reads just the opposite. Again, as a taxpayer, the City Xanager and the City Commissioners should leave well enough alone for the benefit of the many, many boat owners we do have here in Miami so that we can continue to be known as the boating capitol of the World or at least of South Florida. Thank you and all the other commissioners and the City Manager for your consideration of these matters. 8c1 C. Rosario Kennedy omm. . ummer Comm. Miller Dawkins Comm. Joe Carolla City Manager Cesar Odio Merrill Stevens Dry Dock Co. Sincerely your , // lx Mrs. Charles L. Starkdv bubfttted into the :-'�-'-•:�t' reOOrd in conne item Ction OII —// � �o CattyHuai tY Clerk _ fity Commission--%onsiaer ,falk6over of - front faclolity By IEVELYN HERNANDEZ the Oafs yard and asked people to mail 16Md shot! wrmr them to the city. Miami boaters fear the city's proposal to take over management of the only boat The boat ytird and marina are "central i repair yard oa 13fscoyne Ray will leave to the ambiance and quality of life which them high and dry. make Miaml and Coconut Grove unique," Michael .T...Moore, a maritime lawyer, :. City administrators say they would continue running the sprawling business said in a letter to fellow Marine Council 2640 S. Bayshore Dr., operated for 37 members. ' ''years by Merrill -Stevens Dry Dock Co., as while there are boat repair businesses, a boat repair business. The city says it can do a better'lob of Includinganother Merrill -Stevens yard, on the ifaml River, the Dinner Kee yard running the boat yard than Merrill -Ste- is the only one on the bay. vens. "A few times a month some poor boat Boaters are skeptical. Eveatually, they out there is disabled and sinking, and say, the city would remove the boat yard were here.and we save them," said Ron -to make way for a more lucrative • Baker, superintendent at Merrill -Stevens development on the prime bayfront land in the Grove. "That's no longer going to In Coconut Grove. be available.". . On Thursday, the City ' Commission 'conslder In an Aug. 27 memo to the City will a resolution' to evict _ . Commission, City Manager Cesar Odio Merrill -Stevens. The company would said the city received $181,817 from have 90 days to get out. The city would Merrill -Stevens In the fiscal year that . then take over the boat repair and marina ended June 30. In the fiscal year ending business. June 30, : ON, the city* would make The Marine Council and Grove boadag $225,000' from the boat yard it it were and civic organizations want Ahe City under city management, the memo said. Commission to promise that - the boat . Merrill -Stevens' lease with the city .. repair business will stay, ,regardless .of expired In 1984. Since then, the company who runs iL has had a month•to-month lease on the "It it gets neglected,.: It will be closed land. down," said John A. Brennan, wsallor and R►he4 the Merrill -Stevens lease ex- i former commodore of the Coconut Grove 'pired, the City Commission directed its i Sailing Club. ; aloft to draw up a request for proposals to "Then the city will look at Wand say, ,j%ee, the boat facility isn't work- . , ntn the boat yard. Merrill•$tevens Intend- bd to bid,tor the to repair .ang. Let's put A boutique , there. " right continue running the yard. said Ronald J: Falkey, general it The- marine'community has .mobWzed:;. msaager_ofthe company. to ensure that doesn't happen. The Marine ` '. ' But tho pity never put the project out Council, as organization .of : boaters,.-� ,to .bid; nod - Merrill -Stevens continued environmentalists and people who work operating the business month to month. In the marine Industry, has issued a At . its..July 44, meeting, the City position paper formally requestidg that Commission passed a resolution notifying the fall -service boat repair and remain. Merrill -Stevens that the city is consider - The .pouncil printeQ pa r s oup arting ing > aktl � oiler the land. cos sst SIlv4Iu ...- ell 1-Stevens 0 clude it In the agenda for consideration eying a future us inner Key area. on n tthorizes Greenleaf/Telesca Fsign the marina renovation. contract for dockmaster's Davie firm. 1 Type had difficulty obtaining , n the dockmaster's offices. Witt Is electrocuted on the job. ter plans after deciding it wants, go and maintenance space- )n of dockmaster's headquarte,' 'ey for construction to begin at Dint' tes work ,s bankruptcy. again, the • Problems with construction arify and own, a leaky root, a ramp for the he city's ipside-down soap dishes in the . Cole. His deserves orth $136,000 are completed e specific omplete work at the dockmast wayers are receive3. )mpletion of the marina renov, wements with a $600,000 price tag are unt ,t the dockmaster's headquarters, city offic e plugged in and showers and toilets open, ng date for reconstruction of Dinner Key. SG-71 - r r ilia re�i�ients two•by-fc,urs. Marina Director Ai Rodriguez said. The prohlems had still not been corrected Tuesday. -If we had had hidets, thel} would have been showers," Rodri- guez said. Michael Fleming. head of All Type, could not he reached frir comment. The firm's telephone number in Davie has been discon. nected. "That has been the biggest fiasco I've ever seen," said Public Works Director Donald Cathe•. At one point, when All Tvpe fall far behind on the proit`ct. the city asked the bonding company to get another contractor. 'I he company rehired All Type, Cather said. The city paid All Type for 80 percent of the Mork. City officials expect a cost overrun but don't yet know how much. Earlier this year. city employees were called in tro finish the work. They ON• is negotiating with the bonding cc,m• pany to have it repay the city for the cost of finishing the building Meanwhile, boaters have wa-tvd and waited for the new facilities. The biggest complaints, and rightly so. are. 'When are we going to get our new toilets? When are we going to get our new washers and dryers? When are we going to be able to stop using the bottom of City [fall to wash up?' said Cather. McConnell says she stays aiviv from the City Hall showers and keeps her two sons, ages 2 .,and 23 months. away. (0.'. 86-714 'Will shut., re-. =:dir yard City Commission to conside .talkeover of bayfront facilityl By EVELYN HERNANDEZ the float yard and asked people to mail m 5�df w,,ter them to the city. Miami boaters tear the city's proposal to take over management of the only boat The boat yard and marina are "central repair yard can Biscayne Bay will leave to the ambiance and quality of life which make Miami and Coconut Grove unique," them high and dry.' City administrators say they would Michael.T. Moore, a maritime lawyer, continue running the sprawling business 2640 S. Bayshore Dr., for 37 said In a le letter to fellow Marine Council members. at operated years by Merrill -Stevens Dry Dock Co., as While there are boat repair businesses, a boat repair business. Including another Merrill -Stevens yard, The city says it can do a better job of on the Miami River, the Dinner Kee yard running the boat yard than Merrill -Ste- is the only one on the bay. vens. Boaters are skeptical. Eventually, they "A few times a month some poor boat out there is disabled and sinking, and say, the city would remove the boat yard we're here ,and we save them," said Ron -to make way for a more lucrative Baker, superintendent at Merrill -Stevens development on the prime bayfront land In the Grove. "That's no longer going to In Coconut Grove. be available.". On Thursday, the City Commission In an Aug. 27 memo to the City will conslder a resolution' to evict . Commission, City Manager Cesar Odio Merrill -Stevens. The company would said the city received $181,817 from have 90 days to get out. The city would Merrill -Stevens In the fiscal year that . then take over the boat repair and marina ended June.30. In the fiscal year ending business. June 30, 1988. the city 'would make The Marine Council and Grove boating $225.000 from the boat yard if -it were .and civic organizations want the City under city management, the memo said. • Commission to promise that the boat MerrilbStevens' lease with the city 1. repair business will stay, .regardless ,of expired in 1984. Since then, the company who runs it. has had a month -to -month lease on the "If it gets neglected,, It -will be closed land. down;' said John A. Bresnan, &•sailor and Whew the Merrill -Stevens lease ex - former commodore of the Coconut Grove 'pired, the Clty Commission directed its ! Sailing Club. :staff to draw up a request for proposals to "Then the city will took at It and say. 'G . ee, the boat repair facility NO . run the boat yard. Merrill -Stevens Intend- 4d to bid,for the work- �Ing. Let's put a boutique . there. " right to continue running the yard, saki Ronald J. Falkey, general The marine community has : mobilized. -. . manager of the company. to ensure that doesn't happen. The Marine' *. ; But theMy never put the project out Council. an organization .of , boaters, ;. Ao .bids ° ikd Merrill -Stevens continued environmentalists and people who work operating the business month to mouth. Irk. the marine industry, has Issued a At. its, July '24: meeting. the City poalUoa paper formally requesting that Commission passed & resolution notifying the full•seervice boat repair grand remain. Merrill -Stevens that the city is consider - The council printeq pos orting lag taki $ over the land. f R A The MIA l Redd I . JONN& KNIG"T f1M-IM10 �AA!< R A lKftilf;fl7, Ch,nrrnrtn F,' yCntw RIMARDG. CAPEN, 3P Chnirmnn nr.A A46tiaher attn,attAlt?NrA4OLIAN JI"ttA1+ PTON HEATitaAtrnttNF;rHk:R i Prxdeftt 8M Gen"IM'ar. _p Aitr.r ExcCaaah Editor JOANNAWRA0 al. tar�ira+fi rFT9VM477Ft MranogimViror ice! . ... ._ 1 _ .._ IAMI city business can at times run In a very unbusinesslike City Commission manner. The rudiments of the cost -dividend Insurance Policy principle, for example, are not always observed. City officials either feel that when the commission resumes work taxpayers' money does not matter as after the summer break. % - much as shareholders' dollars, or that When the issue is discussed again, the the public interest is not as important as private investors profits.commissioners also should clarify and The purchase of life and disability define the functions of the city s Insurance for the mayor and commis- insurance agent or adviser, Mr. Cole. His sioners of the city of Miami, which is relationship with the city deserves part of their compensation package, ;s investigation to verify If the specific tbenefits he provides for taxpayers are he most recent case of controversial municipal dealings. worth the high commissions he receives. Not only has the. city violated estab- lished procedures of competitive bidding before buying , the 'policies for its officials, but it has purchased the top -of -the -line, fanciest coverage in the market at a high cost for taxpayers. The policies will cost $34,700, half of which likely will go to insurance agent Edwin Cole In commissions the first year. Perhaps expensive universal -life in- surance really Is preferable to the less -costly type known as term insur- ance. But until the city researches the market and makes a thorough study of the right coverage for city commission- ers, no decision can justify buying what one insurance specialist called "Cadillac" policies. Buying simply what is offered i by only one company, without compar- ing terms and costs with alternative i bidders, certainly Is not a sound way to carry out city business. I Granted, city officials should be duly covered and protected in case of acci- dents and even against assassination attempts by terrorists or lunatics. But, when spending taxpayers' money, shop- ping Is always advisable. This is particu- larly true in the field of insurance, where decisions and prices can be so arbitrary. Both Mayor Xavier Suarez and Com- missioner Rosario Kennedy showed con- . tern over this issue In last week's commission meeting. They should in- clude It in the agenda for consideration iOA The Miami IlerAld 1 • JOHN S. 1KNI91-IT0P?W-IM) JAMF-13 L. KNIGHT. Chntrmnn Emeritux RIWARD C. CAPEtR m.. choirnman nn4 nsbtishrr PHIL DEMONTMOLLIN JIM HAMPt'ON HEATH J MERIWETHER Resident and Generat Mom anger Editor Executive Editor JOANNA WRAGG. Associate Editor, PETE WErTZEh. Monop np Editor W � xx� la F YOU were host to a permanent fleet of 1.000 sailboat$ and: �` welcomed DLItiZGi• rKey 2.000 more each year " Visitoit and guests, what priority would ---you put on maintaining the• only full -service boat Commistioner Rosario Kennedy. who hard that is not separated from thq fleet brought up the proposal for a city -run by a drawbridge? program, denies any thought of eliminat• . Common sense insists that profitable ing the boat ' "service. She says her service facilities are No.-.1. That is the concern is for the area's appearance. conclusion that the Miami City Commis- That concern is legitimate. The prop - #ton: should reach qn Thursday when it, . erty, has been declining since the old &'ecotlsiders the use of the Dinner Key lease expired on July 1. 1984. The tenant property now occupied by Merrill -Ste- has been unable since then to invest in vens Dry Dock Co. improvements or in long-range market- ? Merrill -Stevens. a maritime company ing.' Merrill -Stevens officials say they itdf lorida for 101 yelgrs, has been on that could increase the•, city's $200,000-per- site for 37 years. Its -highly, regarded year profit substantially -- and invest in maintenance service was a major factor landscaping. art • projects, and other; in. attracting the 1,000 sallboats that now esthetic improvements — if they had a ' eompose Coconut Grove's nautical forest-.-, long -terra lease. `oi'iuists. rigging, burgees,,and ensigns. ~ ::W That makes, sense. Miami officials city officials are considering should put the lease out to bid, as they, frog • Merrill-Stievens's :rimttaVment •agrrted.' two; years ;ago to do, with the Ali*=• letting` ihuNclpal `bureaucraWrun ; . 9i; rd1lootion'of opetdting a full -service :,tote` facility The administration -tlfat � bdat•.,yard anti marina. Only if 'the don't:. mainisin its porn polices 'cars . ' present tdu" pie or.' other bidders fail to*, rorzrises overnight expertise., i, :the r offer rez#ongble `,oposals , 0ould the sAeciaUzed ':lield of boat rliiintenenee city eveif �C4ti c mMdpal operation ! ,,: '3'he•_ittrplausilfillty of`tjuet preiaf#sgtire+eds Jjeb`r3dSZhoiRt hoardvotedonlylast :: ''to.sstudy:71 pr¢ptisel ;or a 9iieclal � which believes that the- city intends to maritime" school to tralq students, includ- run the boat yard Into -the ground In. ing minorities and potent4d;dropouts. in Order to justify turuln the ;vr+atertroat the skilled trades of the:_huge boating site over to the Monty Trainer manage- indristry..,The, city should match that ment or linking it to the 'nearby commitment by securing a place on the exhibition center. say for boats And for those whose trade Perhaps that paranoia is unfounded. is to repair and maintain them. S a 0A x: a, !, `��` ..� upset re Id S ents'.� rs t By EVELYN HERNANDEZZ Herold stall writer Summertime, and taking a shower is easy. Cvdney McConnell puts on a bathing suit, lathers up and hoses herself down on the pier where she lives at Dinner Key Marina. Wintertime is another story. Then McConnell has to Join other people living aboard boats at the marina who have to use the decaying showers and toilets in the basement of Miami City Hall. - A tangle of problems with contractors has delayed both the $265,000 reconstruction of the dockmaster's headquarters, with new showers and toilets, and the $7.3 million renovation of Dinner Key Marina. Originally scheduled for completion in mid- to late 1986, the pier work will take at least another two years. Showers, toilets, washing machines and dryers were supposed to take four months to install and were to be ready for marina residents in July 1984. Tuesday, Assistant Public Works Director Luther "Pete" Long said the facilities should be open. Told they were not, Long said he would check Pt to to KEY/8 a . ease m V _. -1i Now. 4,1992 .—, Miami City Commission authorizes Greenleaf/Telesca Planners, Engineers, Architects Inc. to design the marina renovation. Dec. 0,1993 City awards construction contract for dockmaster's headquarters to All Type Projects inc., a Davie firm. March 0,1904 ---- After delays because All Type had difficulty obtaining .k building permits, construction begins on the dockmaster's offices. Witt. month, an eMployee of a subcontractor Is electrocuted on the job. May 7, 1984® City stops contractor to alter plans after deciding it wants_ new east wing to hold offices, not storage and maintenance space. July 6,1984 — Original date for completion of dockmaster's headquarter passes. January 1985 — The original target date for construction to begin at Dini Key Marina slips by. / Feb. 0,1985 Greenleaf/Telesca ddclares bankruptcy. Summer 1985 -- All Type goes bankrupt. Problems with construction included roof trusses installed upside down, a leaky roof, a ramp for th- handicapped that was too narrow and upside-down soap dishes in the bathroom. January 1986 — Electrical improvements worth $136,000 are completed marina. City employees are called in to complete work at the dockmas! headquarters. June 1986 ® The original target date for completion of the marina renov passes. July 1086 — Water main improvements with a $600,000 price tag are unc way at Dinner Key Marina. At the dockmaster's headquarters, city offic- say washing machines will be plugged in and showers and toilets open use within days. Fall 198f3 -- Anticipated starting date for reconstruction of Dinner Key. p Delayed repairs upset marina residents KEY /from 2 once more on. the delays. Bankrupt and in default, the contractor for the dockmaster's headquarters, All Type Projects Inc. of Davie, has left the city with a leaky roof and a ramp for the handicapped that had to be built twice because it was too narrow. Long said. In the bathrooms, soap dishes were put in upside down and sinks are attached to the walls with i i two-by-fclurs. Marina Director Al Rodriguez said. The problems had still not been corrected Tuesday. "If we had had bidets, tile,% would have been showers," Rodri. guez said. Michael Fleming. head of All Type, could not he reached for comment. The firm's telephotw number in Davie has been di -con- nected. "That has been the biggest fiasco I've ever seen," said Public Works Director Donald Cathe,. At one point, when All Type felt far behind on the projecl, the div asked the bonding company to get another contractor. The company rehired All Type, Cather said. The city paid All Type for SO percent of the work. City officials expect a cost overrun but don't cent know how much. Earlier this ycar. city employees were called in V. finish the work. The. city is negotiating with the bonding com- pany to have it repay the city for the cost of finishing the building. Meanwhile, boaters have waitt-d and waited for the new facilities. "The biggest complaints, and rightly so, are, 'When are wv going to get our new toilets? When are we going to get our new washers and dryers:' When are w(. going to be able to stop using the bottom of City Hall to wash upT said Cather. McConnell says she stays away from the City Hull showers a: a keeps her two sons, ages 2 ''' ,end 23 months, away. (u,'. _ .. _.� ...:. _.: :... _..-i CITY Or MlAmi. P"l anIQA TO: Honorable Mayor and Members of the City Commission FROM: Cesar H. Odi o City Manager DATE: S P 1 111915 nLg: RAD SUNJECT: Operational Feasibility - Merrill -Stevens Facility REFERENCES: ENCLOSURES: IT IS RECOMMENDED THAT THE CITY COMMISSION ADOPT A RESOLUTION DIRECTING THE CITY MANAGER TO ASSUME MANAGEMENT AND OPERATIONS OF THE MARINE SERVICE FACILITY CURRENTLY OPERATED BY MERRILL-STEVENS DRY DOCK COMPANY AT DINNER KEY, AND DIRECTING THE CITY MANAGER TO, ON NO LESS THAN A NINETY (90) DAY TIME FRAME, PREPARE AND IMPLEMENT A PROGRAM FOR THE CITY TO TAKE CONTROL OF THE PROPERTY AND THE OPERATIONS THEREON; ADDITIONALLY DIRECTING THE CITY MANAGER TO PUT MERRILL-STEVENS DRY DOCK COMPANY ON NOTICE TO VACATE THE PREMISES WITHIN SUCH NINETY (90) DAYS. Pursuant to the City Commission's directive, the administration has reviewed the feasibility of whether or not the City can effectively operate a boatyard facility on City property currently leased by Merrill -Stevens Dry Dock Company. In general, the answer is affirmative. As you are aware, Merrill -Stevens Dry Dock Company operates a full -service brokerage, storage and yacht repair facility on land leased from the City of Miami at 2640 South Bayshore Drive. Organizationally, the operation is comprised of the Dinner Key and Yacht Brokerage divisions. According to Merrill Stevens personnel, the Dinner Key and Yacht Brokerage Divisions are supported by 67 full and part-time employees principally performing administrative, yacht brokerage, storage and marine trades -related functions. The lease agreement between the City of Miami and Merrill -Stevens expired on July 1, 1984. However, Merrill -Stevens continues to lease the City property on a month -to -month basis as a tenant -at - will in compliance with the conditions of the expired agreement. In addition, on July 24, 1986 the City Commission passed Resolution No. 86-626 placing Merrill -Stevens Dry Dock Company on notice that the City is considering a future use or uses of City - owned land in the Dinner Key area. 4017j0)V SE-714 1 Honorable Mayor and Flembers 4 of the City Commission Page 2 According to the Department of Internal Audits and Reviews, revenue payments to the City of Miami from Merrill -Stevens aggregated to $181,815.56 for the fiscal period ending June 30, 1986. Determination of service level is essential to the City's effective operation of the Merrill -Stevens facility. The administration has proposed that the City should only operate the Merrill -Stevens facility as a storage and dockage operation and that trades -related functions, i.e., carpentry, electrical, mechanical and painting should not be performed by the City. More specifically, it is recommended that the City maintain both current wet and dry storage facilities including the provision of gasoline and diesel fuel from the dock areas. In addition, it is recommended that the approximate 1,600 square feet currently occupied by the Yacht Brokerage division be available for rental at prices comparable to the area. From a financial perspective, the custodial operation of the facility merits favorable consideration. Operating and financial projections of the facility for nine months of fiscal year 1987 demonstrate a positive cash position of approximately $44,627. Cash positions of subsequent fiscal periods will substantially improve since considerable non -recurring expenditures for capital outlay will be programmed during the first year of operation. To illustrate, projected annual cash flow without capital outlay will be approximately $225,000 in FY'88. It is anticipated that the City's custodial operation of Merrill - Stevens could commence on December 11, 1986 supported by the attached rate schedule. Merrill -Stevens Dry Dock Company will be provided a ninety -day notification of the City's intent to assume operations of the facility, subject to the approval of the City Commission. It is therefore recommended that the City Commission approve the attached resolution authorizing the City Manager to proceed. A A ` COCONUT GROVE 80ATYARD ENTERPRISE SOURCES AND USES OF FUNDS JANUARY 1, 1987 - SEPTEMBER 30, 1987 INCOME Wet Storage $1400400 Less 10% Vacancy 14,040 Available Wet Storage Income $126,360 - Dry Storage 245,700 Less 40% Vacancy 98,280 Available Dry Storage Income $147,420 Lift Operation 121,875 Gasoline Sales 3129010 Commercial Rental -Office Space 18,000 is r, Total Available Income $726,665 EXPENSES �sYy Personnel Services $1069375 [FI Operating Expenses 179,363 Operating Supplies -Gasoline 2719350 ` Capital Outlay 1230950 Total Expenses $681,038 r Net Cash Flow-9 Months $449627 Projected Net Annual Cash Flow $224,769 W/O Capital Outlay w r Proposed Net and Dry Storage Rates Merrill Stevens Facility A. Dry Storage Rates Less than 30' $.21/ft/day 30' - 40' Covered $.38/ft/day 30' - 40' Uncovered $.36/ft/day On owner's trailer $.10/ft/day B. Wet Storage Rates Long term Transient Liveaboard Surcharge $.25/ft/day $.42/f t/day $.07/ft/day