HomeMy WebLinkAboutR-84-0709J-84-277
6/28/E4,t-'?
_
sd
RESOLUTTON TTn
A RESOI,LI T TON AI�TUOPT7, j
N ; TPI-1 T)1R.ECTOR OF
FINANCE TO PAY
TFTTTIN. AS ATTORNEY
FOR PISCi%), T; P1:�.R1�,��'t Ts)'T
11E��ELi; TiElt'i` COMPANY
A FI,OPl i)A
RECEIPT
,
THE SU"" ()I, rTr:l_''iT
1rJ)
DOLLARS ' T•.'TT!,OT T iIII: AT)'iTS.>T_O`
OT' l,TA-
BILTTY IF I:TTTJ, nr;D CO'TPT,i•T'
;r-;'TI r TIENT
OF ANY A"?D A1,1, C11 i,S
^.';T) i)T'l'ANI)q AGAINgT
THE CT'i Y OFMI A'Sl_ ACID
t;hT;l;i' 1 TT)N OI' A
DOCiJ'II:NT "T UE
CITY OF 'c TANT' S
_
E14PLOYEES AND OFFTCF.PS
FT'O?i ALI, CLAIMS
AND DEMANDS AND UPON ENECUTTO':
OF OTHER
SETTLENEUT DOCIJMT;NTS,
1d1TH FUNDS THEREFOR
ALLOCATED FROM '!ARINA
F7',dTr,ItPR1Sr FU?dD.
WHEREAS, Biscaane Recreation Development Company filed a
lawsuit against the City of Miami for damages claimed as a re-
sult of the Company's operation of the Dinner Koy Marina -pursuant
to a manageTlent agreement which was later held by the Third
SDistrict Court of Appeals to be void and the Company L.as demanded
Taro Hundred Fifty Five Thousand Twenty Five Dollars ($225,025.00);
and
WHEREAS, the City of 'Iiami has filed a counter -claim against
Biscayne Recreation Development Company for an accounting of sums
of money advanced to Biscayne Recreation for operating expenses;
and
f WHEREAS, the above claims have been investigated by the City
l
Manager's Office and the City Attorney's Office and they recom-
mend that these claims be settled without admission of liability
for the sum of Ei;>l,tv Thousand ($80,000.nO) Dollars and dismissal
of the counter -claim.
NOW, THEREFORE., r,F. IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The Director of Finance is hereby authorized
to pay Herbert Stettin, Esq., as attorney for Biscayne Recreation
Development Company, in trust, pending receipt of settlement
documents, Eighty Thousand ($80,000.00) Dollars and the City
hereby agrees to dismiss Biscayne Recreation Development Company
from the CITY's counter -claim against Biscayne Recreation Develop-
ment Company for an accounting of sums of money advanced to Biscayne
CITY C4MMMSION
MEE1,1II111C, Cyr'
REW.1-,,riS
cor"
Recreation for operating expenses in full_ and complete settle-
ment of any and all claims and demands against the City of Miami,
its officers and employees, conditioned iipnn the dismissal of
Biscayne ReCl-e.1 ti On Development Compan-•' - c 1 a i Pis aaa ins;t the
City of Miami and the execution of sitc_h doci,ments, including
releases, as regiiired by the Office of the City Attorney for
settlement of the matter.
Section 2. The above -mentioned funds are allocated from
Marina Enterprise Fund.
PASSED AND ADOPTED this 28TH day of JUNE , 1984.
Maurice A. Ferre
MAURICE A. FERRE, MAYOR
ATTEST:
K/
RALW G. ONGIE, CITY CL RK
PREPARED AND APPROVED BY:
ROBERT F. CLARK, DEPUTY TY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
E GARCIA-PEDROSA, CITY ATTORNEY
- 2 - 84-709_
coir
*1
CITY OF MIAM1. 1''t_ORICA
INTER -OFFICE_ MF_MCaFdANDUM
TO: Honorable Mayor and Members
of the City Commission
FROM: Jose Garcia -Pedrosa
City Attorney
DATE: June 5, 1984
SUBJECT. Biscayne Recreation
Development Company vs
City of Miami
Case No. 83-4033 (CA-15
REFERENCES.
ENCLOSURES:
Plaintiff, Biscayne Recreation Development Company, filed a claim
against the City of Miami for damages which arose out of the
operation of the Dinner Key Marina by the company during_ the
period of time in which a management agreement was in effect with
the City. That agreement was declared void by the Third District
Court of Appeals in 1981. because of the selection procedure which
was utilized by the City in selecting the Biscayne Recreation
Development Company.
The City in 1978 invited interested parties to submit public
proposals for the leasinq, management, operation, maintenance,
redevelopment, and expansion of the Dinner Key Marina. The City
then received proposals from several proposers including a
proposal from Biscayne Recreation Development Company. The City
thereafter rejected all proposals for a long term lease of
Dinner Key Marina and decided to finance the reconstruction and
development of Dinner Key Marina with monies from revenue bonds.
The City thereafter entered into a competitive negotiation
process whereby the City Manager's Office screened candidates for
the management of Dinner Key Marina. After the screening
process, three companies were recommended for the operation to
the City Commission by the City Manager's Office. After one of
the companies withdrew, the City Commission directed the City
Manager to negotiate a short term management contract with
Biscayne Recreation Development Company and after a lengthy
negotiation process, an agreement was entered into on December
18, 1980.
Miamarinas Associations filed a declaratory action for injunctive
relief on February 11, 1980. A hearing was held before iionorable
Judge Wetherington on August 1, 1980 and he ruled that the City
had complied with the revisions of the Charter relative to
competitive negotiation and denied relief to Miamarinas Associa-
tions. Miamarinas Association filed a Notice of Appeal on
October 9, 1980 and, Biscayne Recreation Development Company
began operation of the marina on January 16, 1981. The Third
District Court of Appeals in Miamarinas Association, Inc. v_. City
of Miami, 408 So.2d 615(Fla.�3 DCh 1982), overturned ,judge
Wetierington's decision below and determined that the management
84 -709;
Honorable Mayor and Members
of the City Commission
June 5, 1984
Page 2
agreement was void. The Florida Supreme Court denied review of
the case in 1.9P2 and as a result the City of Miami took over
operations again at Dinner Koy Marina on August 4, 1982.
The amounts claimed in the lawsuit filed by Biscayne Recreation
Development Company can be divided into the following categories,
a summary of which is provided as follows:
1977
- 1980 . . . . . . . . . . . . . .
. . . . $
93,754.00
1981
Expenses due to contract . . . . . .
. . . . $
14,616.00
1982
Expenses due to contract . . . . .
. . . . $
20,611.00
1981
- 1982 Permitting Expenses . . .
. . . . $104,744.00
1982
invoices Not Paid:
Wisdom Associates (Permitting)
. . . . $
5,669.00
Dubbin, etc. (Permitting only)
. . . . $
5,927.00
Capital
Associates (vending machines) . .
. . . . $
7,432.00
City
Products (Ice) . . . . . . .
. . . $
1,331.00
Pepsi
. . . . . . . . . . . . . . . . . .
. . . . $
439.00
Champion
Tee Shirts . . . . . . . . . .
. . $
502.00
$255,025.00
The City of Miami in answering the lawsuit filed by Biscayne
Recreation Development Corporation filed a counter -claim against
Biscayne Recreation Development Company for an accounting of
money which was paid to Biscayne Recreation Development Company
to be utilized for operating expenses. Pan American Bank had set
off sums of money from this account for satisfaction of debts of
Biscayne Recreation Development Company, and an additional
amount of money is the subject of a garnishment by a creditor of
Biscayne Recreation Development Company in Broward County.
The City Manager's Office has reviewed the amounts claimed by the
Plaintiff in conjunction with the City Attorney's Office and
after extensive discussions and negotiations on all claims, this
_ matter can now be settled without the admission of liability for
the sum of Eighty Thousand Dollars ($80,000.00) and dismissal of
the counter -claim. The City Attorney's Office recommends that
the City of Miami pay Eighty Thousand Dollars ($80,000.00) and
dismissal of the counter -claim, in full and complete settlement
of this claim against the City of Miami and conditioned upon the
dismissal of Biscayne Recreation Development Company's claims
against the City of Miami and upon the execution by Biscayne
Recreation Development Company of certain settlement documents,
including releases for the City of Miami, its officers, and
employees and a notice of dismissal.
84-- / UJ.
Honorable Mayor and Members June 5, 1984
of the City Commission Page 3
It is requested that this item be placed on the Tune 28, 1984
Commission meeting agenda because it has been continued by the
court pending settlement negotiation approval by the City
Commission.
JJC/wpc/ab/138