HomeMy WebLinkAboutR-86-0151J-86-211
02/27/86
RESOLUTION f Ci--1 51•
A RESOLUTION OF THE MIAMI CITY
COI'MISSION REVOKING THE PERMIT
ISSUED BY THE CITY MANAGER ON
FEBRUARY 13, 1986, TO MIAMI
MOTORSPORTS, INC.; AUTHORIZING THE
CITY MANAGER TO AMEND THE RESTATED
LICENSE AGREEMENT TO ALLOW FOR THE
DETERMINATION OF THE AMOUNTS OF
REQUIRED MIAMI GRAND PRIX RACE
INSURANCE TO BE ESTABLISHED BY THE
CITY MANAGER; ACCEPTI►QG THE CITY
MANAGER'S FINDING THAT A MINIMUM
FIVE MILLION DOLLAR LIABILITY
INSURANCE POLICY TO BE PROVIDED BY
MIAMI MOTORSPORTS, INC. TO THE CITY
FOR THE GRAND PRIX RACE HELD IN
1986 IS ADEQUATE AND AUTHORIZING
THE CITY MANAGER TO ISSUE A PERMIT
TO MIAMI MOTORSPORTS, INC. IN
ACCORDANCE WITH SECTION 549.08 F.S.
(1985).
WHEREAS, under an agreement between the City of Miami and
Miami Motorsports, Inc. dated June 14, 1982, the Miami Grand Prix
Racing
Events were staged
for three
years in
Bayfront
Park,
around
Miamarina and along
Biscayne
Boulevard
south of
Port
Boulevard; and
WHEREAS, the City and Mia[ni Motorsports, Inc. renegotiated
and entered into an agreement on October 16, 1985, relocating and
creating a new race circuit through Bicentennial Park, the FEC
Tract and along Biscayne Boulevard north of Port Boulevard; and
WHEREAS, the Florida State Legislature enacted the
"Municipal Vehicle Racing Act of 1984" Sec. 549.08 F.S. (1985)
establishing motor vehicle racing events to be conducted on
highways, streets, or in parks within a municipality to be a
public purpose and further permitting a municipality to limit
access, charge admission, allow for temporary closing of
highways, streets, sidewalks and parks, reroute vehicular and
pedestrian traffic and make findings that such a permitted race
event is a public use and not a public or private nuisance; and
WHEREAS, the City issued a permit on February 13, 1986,
according to Sec. 549.08 F.S. (1985) granting permission to Miami
cul
1"
F E 8 027`( W
T[r1i %6 Sly-1 51[
Motorsports, Inc. to operate the Miami Grand Prix in and upon
City streets, City parks, and other property pursuant to the
Restated License Agreement dated October 16, 1985; and
WHEREAS, the Miami Grand Prix has been run successfully
during the past three years in the City of Miami with no
significant claims imposed against the City or Miami Motorsports,
Inc. for damages; and
WHEREAS, the effect of the Municipal Vehicle Racing Act of
1984 limits liability that might be imposed against the City; and
WHEREAS, the purchase of liability insurance, in excess of
five million dollars, for a race event such as contemplated by
the permit is prohibitive in the current insurance market; and
WHEREAS, under the Restated License Agreement dated October
16, 1985, Miami Motorsports, Inc. indemnifies, holds harmless,
saves and defends the City, its officers and employees from and
against any and all claims, liens, liability losses or damages;
and
WHEREAS, the City Manager has determined that the new State
Law, the current insurance market, the established safety record
of the Miami Grand Prix and the indemnity provisions of the
Restated License Agreement permits him to find that a minimum
requirement of a five million dollar liability insurance policy
to be provided to the City by Miami Motorsports, Inc., is
adequate;
NOW, THEREFORE, RE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1.
The
City Commission hereby revokes the permit
issued by the
City
Manager
on February 13, 1986 to Miami
Motorsports, Inc.
Section 2.
The
City Commission hereby authorizes the City
Manager to amend
the
Restated
License Agreement to allow for the
determination of
the
amounts
of required Miami Grand Prix race
insurance to be established
by
the City Manager.
-2- SC-1.511 .
0 0
Section 3. The City Commission hereby accepts the City
Manager's finding that a minimum five million dollar liability
insurance policy, to be provided by Miami t4otorsports, Inc. to
the City for the 1986 Grand Prix race, is adequate.
Section 4. The City Commission hereby authorizes the City
Manager to issue a permit to Miami Motorsports, Inc. in
accordance with Sec. 549.08 F.S. (1985).
PASSED AND ADOPTED this 27thday of FEBRUARY , 1986.
ATTEST:
MATTY HIRA1, City Clerk
PREPARED AND APPROVED BY:
Deputy City Attorney
APPROVED AS,,,'fO' FORM AND CORRECTNESS:
LUCLIA A. DOUG
City Attorney
RNS31/la
X IER L. SUAREZ, Mayor
BC-1 i 1k .
I BARRY BLAXSERG
RONALD L BOOK
CHARLES A CITRIN
EDWARD HEILSPONNER
'} URSULA MANCUSI -UNGARO
HOWARD E ROSKIN
ROBERT L RUBIN
RONALD A SHAPO
ARNOLD D SHEVIN
JEROME H SHEVIN
ROBERT L SHEVIN
STEVEN SONBERG
BYRON L SPARBER
STEPHEN A STIEGLITZ
SETH STOPEK
ARTHUR E TEELE. JR
JEFFREY M WEISSMAN
LAW OFFICES
SPARBER, SHEVIN, SHAPO, HEILBRONNER & BOOK
PROFESSIONAL ASSOCIATION
JAMES H BARRETT
RICHARD I BLINDEPMAN
JOSE A BOLANOS
FRANCISCA COPELAND LOPEZ
MICHAEL J CONIGLIO
BRIAN S DERVISHI
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
D JUSTIN NILES
GARY S PHILLIPS
LAWRENCE M PLOUCHA
MARK REEVES
MARSHA C ROSEN
GARYR RUTLEDGE
NANCY SCHLEIFER
ELIZABETH SCHWABEDISSEN
SEYMOUR N SINGER
GREGG S TRUXTON
GLENNJ WALDMAN
ROBERT T YOUNGS
GERALD D KISNER
OF COUNSEL
L A SKIP' BAFALIS
GOVERNMENTAL AFFA,RS CCNS_,. AN'
• AOM,TTED IN OHO b
VIAS—NGTON D C
February 27, 1986
Mrs. Lucia A. Dougherty
City Attorney
City of Miami
169 E. Flagler St.
Miami, F1 33131
Re: Miami Motor Sports, Inc.
Dear Mrs. Dougherty:
AMEPIFIRST BU-LDING
ONE SOUTHEAST THIRD AVENUE
MIAMI, FLORIDA 3313, 1766
TELEPHONE (305) 347.4700
TELECOPIER 347-4889
FORT LAUDERDALE 524 0209
NORTH BROWARD 781. 952,
TELECOMMUNICATIONS 347 4899
TELEX 1 51 0600218,
TELEX EASYLINM 62899002
TALLAHASSEE OFFICE
315 SOUTH CALHOUN STREET
BARNETT BANK BUILDING- SUITE 348
TALLAHASSEE.FLORIDA 3230,
TELEPHONE (904) 691 7051
TELECOPIER 224 2784
REPLY TO MIAMI OFFICE
WRITERS DIRECT M
As counsel to Miami Motor Sports, Inc., you have
requested our position with respect to the constitutionality of
Chapter 549, Florida Statutes, the validity of the permit granted
by the City to Miami Motor Sports, Inc., pursuant to Chapter 549,
Florida Statutes; and the City's liability for damages resulting
from the running of the race.
With respect to the constitutionality of Florida Statute
Chapter 549, please understand that in the course of evaluating
the constitutionality of a Statute, a Court's opinion may be
influenced by public policy considerations as well as other con-
siderations not set forth in a legal analysis, and it is impossi-
ble to state with certainty whether the Court will construe a
Statute as constitutional. Nevertheless, we feel strong argu-
ments exist to support the constitutionality of the Statute and
shall describe those arguments below. At the outset, we note the
common law presumption that statutes are valid and constitutional
and each argument below considers that presumption.
Initially, we have considered whether the Statute con-
stituted an unconstitutional delegation of legislative author-
ity. The legislature cannot delegate essential legislative
functions to others, but the legislature may confer authority or
Mrs. Lucia A.
February 27,
Page 2
Dougherty
1986
discretion upon the City to provide rules and regulations for the
complete operation and enforcement of the law within its
expressed general purpose. Florida Statute Chapter 549 sets
forth specific standards which a municipality must utilize when
exercising its planning level authority to carry out the purpose
of the law. As noted in the facts below, the City purports to
have followed these guidelines and indicated that it will do so
in its further actions this week.
Secondarily, the Statute sets forth specific require-
ments for running the race, as well as specific requirements
regarding restoration of and access to public and private prop-
erty rights. The Statute clearly and specifically sets forth the
permissible and prohibited conduct involved in operating a motor
vehicle racing event and, therefore, should not be subject to
challenges for being overbroad or void for vagueness.
Third, Florida Statute S 549.08(9) provides, in part:
A racing event held under this Section... shall
be considered as being for public purposes,
including the promotion of commerce and
tourism, and for the benefit of the citizens
of the municipality and the State.
This provision provides a strong argument that the
Statute is not void as against public policy.
Finally, we considered whether the race can be attacked
as constituting a public nuisance. Florida Statute S 549.08(8),
provides, in part:
A racing event held pursuant to this sec-
tion...shall not be considered or found to be
a public or private nuisance.
Florida law provides that the State has the power to
legalize, in so far as the public is concerned, what would other-
wise be a public nuisance. Thus, when the State authorized auto-
mobile race meets, even though the race might otherwise consti-
tute a nuisance, such authorization sets forth a strong argument
5
against a charge of maintaining a public nuisance.
With respect to the remaining issues considered by us,
we are predicating our opinion upon the following factual bases:
Mrs. Lucia A.
February 27,
Page 3
Dougherty
1986
1. That the City, prior to issuing the permit, determined:
(a) That Miami Motor Sports, Inc., had adequate insur-
ance to pay any damages incurred because of loss of or injury to
any person or property;
(b) That Miami Motor Sports, Inc., had demonstrated
experience in conducting a racing event on a highway or street or
in a park;
(c) That adequate security and necessary facilities
will be provided during the racing event;
(d) That Miami Motor Sports, Inc., had demonstrated the
ability to protect the health, safety and welfare of the citizens
of the municipality, and those persons attending the racing
event.
2. That subsequent to entering into the Amended and
Restated Grand Prix Agreement, the City of Miami was informed by
Miami Motor Sports, Inc., that liability coverage was confirmed
for the amount of five million dollars.
3. You have advised us that you intend to pass a resolution
which sets forth all of the Chapter 549 statutory requirements
above and which specifically finds that $5 million in insurance
coverage is adequate insurance to pay any damages incurred
because of loss of or injury to any persons or property. You
have further advised us that upon passage of the resolution, the
City will issue a new permit for the remaining Grand Prix
presently scheduled for this coming weekend, early March, 1986.
At the same time the City will waive certain provisions
regarding liability coverage set forth in the Amended and
Restated Grand Prix Agreement. We, of course, assume that the
City has properly followed and will properly follow its own
rules, standards and guidelines, as well as state law regarding
the issuance of permits.
Florida Statute § 549.08(7) provides, in part:
A municipality that issues a permit under this
Section is not liable for any damages that may
result from the racing event because of loss
of or injury to any person or property ... If a
municipality, a county, or the State is
insured against liability for damages for any
negligent or wrongful act, omission, or occur-
G
i
B J_1 i.
Mrs. Lucia A. Dougherty
February 27, 1986
Page 4
rence resulting from a racing event, the
provisions of this subsection do not apply to
the extent of such coverage provided by the
insurance policy. (Emphasis added.)
Moreover, in Paragraphs 50 and 51 of the Amended and
Restated Grand Prix Agreement, the Licensee agreed to indemnify
and hold the City harmless for the actual or claimed negligence
of the licensee, its agents, employers, contractors, concession-
aires or licensees giving rise to property damage or personal
injuries. In addition, the City has the additional protection,
defenses and protections available to it under Florida Statute
S 768.28 including but not limited to the statutory recovery
limits of $100,000 per person and $200,000 per incident or occur-
rence.
Based upon the foregoing analysis:
1. The statute should be construed to be constitutional;
2. The new permit should be deemed validly issued;
3. The City should not be liable for damages for injury to
persons or property resulting from the race except for insured
amounts, if any; and
4. Although in our view, as set forth above, the City
should not be liable because of the protections in the Agreement
with Miami Motor Sports, Inc. (Paragraphs 50 and 51) and because
of Florida Statute, Chapter 549, liability, if any, should be
limited by the provisions of Florida Statute § 768.28.
However, there can be no certainty as to the outcome of
any legal proceeding, particularly when dealing with relatively
new areas of the law, such as involved in this case, and we
cannot guarantee the ruling of the Courts in any specific case
which might arise.
Very truly yours,
SPARBER, SHEVIN, SHAPO
HEILBRONNER & BOOK, P.A.j 7
By:
RO RT L. SHEVIN
03-051-314/4**