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HomeMy WebLinkAboutM-82-0726C f G TO Honorable Mayor and Members of the City Commission FROM Howard V . Gar City Manager CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM DATE July 26, 1982 FILE. SUBJECT Special item -- Biscayne Re- creation Development Corporation Contract Termination REFERENCES ENCLOSURES (3) The State Supreme Court decided not to hear a lower court decision invalidating the management agreement between the City of Miami and Biscayne Recreation Development Corporation. The effect of this decision is that the City can no longer allow Biscayne Recreation to manage Dinner Key Marina. The City has 15 days to discontinue its business relationship with Biscayne Recreation. In order to insure that the City's interest is protected and that the marina continues to operate, we plan to implement an operational plan which is described in the attached memorandum. The operational plan provides that the City assume full responsi- bility for the day-to-day operation of the marina. Existing employees will become contract employees of the City and day-to- day supervision will be provided by a member of the City Manager's Office staff. Controls have been established and the operation will be monitored. Considerable work has been completed on the permitting process and it is our intention to assume full responsibility to continue the permitting process. To accomplish this, we propose to engage the services of Wisdom Associates, Inc., who have been involved in this project for approximately one year. They are familiar with the project and the permitting process and will be able to insure continuity of effort. During the time that the City will be operating this marina, it is my intention to have an analysis developed which will indicate whether it is in the best interest of the City to operate this marina or to have the private sector assume management responsi- bility. When the permitting process is completed and we move forward with the expansion as proposed, the City will have a very major investment. Financing of this project by revenue bonds require an indepth analysis of the most feasible method of oper- ation. I will keep you advised as we progress on this matter. By virtue of the time imposed by the court's decision, I deem this an emergency matter and request a policy decision from the Commission at the July 29, 1982, Commission Meeting. �- 82-726 N t Honorable Mayor and Members of the City Commission IWZ July 26, 1982 Authority is request to take the following specific action: 1. To develop contracts with existing marina employees. 2. To enter into a consulting agreement with Wisdom Associates, Inc., for an amount not to exceed $10,000.00. 3. To send the attached letter to Paul S. Walker advising him of the Court decision and the proposed action by the City. 82-'7'26 CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO Howard V. Gary City Manager FROM Randolph B. Rosencrantz Assistant City Manager DATE July 26, 1982 FILE SUe,ECT Biscayne Recreation Development Corporation Contract Termination REFERENCES ENCLOSURES This is to confirm our earlier conversations concerning the operation of Dinner Key Marina as a result of the recent Court decision terminating the contract between the City of Miami and Biscayne Recreation Development Corporation. There are two separate issues involved. One issue is the day-to-day operation of the marina to insure continuity of service to the customers and the protection of assets. The second issue involves continu- ing the permitting process to enlarge the marina. To continue the day-to-day operation of the marina, the following plan is recommended: 1. The effective date for City take over of operations shall be at 12:01 a.m., August 4, 1982, in accordance with the Court decision. 2. Between now and August 4th, we will very closely monitor events to insure the best interest of the City is pro- tected. 3. Presently there are approximately 15 employees working at the marina for the private contractor. We will approach these employees to determine if it is feasible to have them become contract employees (same salaries, etc.). 4. The present dockmaster will be one of the employees to be hired on a contractual basis and will be instructed to report directly to Alfredo Rodriquez, Marine Develop- ment Specialist. 5. For the immediate future, the marina operation will con- tinue essentially the same as it has for the past several months with no significant change in policies or procedures. 6. The Internal Auditor has been advised to conduct an immedi- ate exit audit. 82-'7'26 Howard V. Gary -2- July 26, 1982 City Manager The second item of concern involves the continuing of the permit- ting process. I recommend: 1. We engage the service of Wisdom Associates as the consul- ting firm to the City on the permitting process and to represent the City as appropriate in this process. 2. To designate an engineer in the City Department of Public Works to work on this project with Wisdom Associates. RBR:ces 82-'72CO Mr. Paul S. Walker, President Biscayne Recreation Development Corporation 3400 Pan American Drive Miami, Florida 33133 Dear Mr. Walker: This is to confirm several earlier verbal communications concerning the impact of the court case involving the City of Miami and Biscayne Recreation Development Corporation. City Attorney George Knox has advised that the Court decision allows 15 days for this contract to be ended. The Court decision is dated July 19, 1982, and thus the contract should be ended no later than August 3, 1982. Please be advised that effective 12:01 a.m., August 4, 1982, the City of Miami will assume full responsibility for the operation of Dinner Key Marina and that the contract between Biscayne Recreation Development Corporation and the City of Miami will be considered terminated. Sincerely, Howard V. Gary City Manager 82,, 474QUI A I TO Howard V. Gary City Manager FROM JtGea F. ox, Jr. Attor F40RIDA, 4J L 1 J • ." INTER -OFFICE MEMORANDUM DATE July 26, 1982 FILE SUBJECT_ Supreme Court Order: City of Miami v. Miami Marina Assoc., Inc. REFERENCES ENCLOSURES: On Monday, July 19, 1982, the Florida Supreme Court denied the City of Miami's petition for review of the Third District Court of Appeal's Order in Miami Marina Assoc., Inc. v. City of Miami, 408 So. 2d 615, in which the Third District Court o Appeal held that the City of Miami was required to select its waterfront management company through competitive bidding and not by competitive negotiation. The court reasoned that a waterfront property management contract is not among the defined professional services of either Section 287.055 F.S. or the Code of the City of Miami. In that the Supreme Court would not accept jurisdiction in this matter, the Third District Court of Appeal's opinion will apply after the mandate is issued from the Florida Supreme Court, i.e. Tuesday, August 3, 1982. As of that date the cause is to be remanded ". . . for further pro- ceedings consistent with our (i.e., the 3d DCA's) deter- mination that the challenged management agreement is void." The City of Miami's contract with Biscayne Recreation Devel- opment Company will be null and void at the time that the trial court enters an order in compliance with the appellate court's direction. At such time as the trial court enters its order, there will be no authority for the City to allow Biscayne Recreation Development Company to manage the marina. A management decision must be made by your office as to how to proceed at the time when the trial court's order becomes operational. The timing of the court's order is uncertain, however you should be prepared with your future course of action by August 3, 1982. Biscayne Recreation should be put on notice that its management contract with the City will no longer be in effect. While it can be anticipated that Biscayne Recreation will not sue us, they should be advised that no additional expenditures should be incurred on behalf 82--'72L*, Howard V. Gary -2- July 26, 1982 of the City and to closely coordinate all of their activities with your office in the time left before the Court voids the contract. For your information, Murray Dubbin, the attorney for Biscayne Recreation, at a hearing on August 1, 1980, stated that: if . . if it became apparent that the City's contract with my client was violative of the charter, notwithstanding the City acting in good faith, pursuant to the contract, my advice to them would be absolutely not to sue, that their cause of action would be very, very limited, if at all. In fact, I don't think it would exist. I wouldn't handle it." GFK/wpc/1 82-7Zi� r *=rtnu QCourt of 11oriba o MONDAY, JULY 1.9, 1982 CITY OF MIAMI, Petitioner, V. MIAMI MARINAS ASSOCIATION, INC., Respondent. CASE NO. 61,829 District Court of Appeal, 3d District - No. 80-1963 •. This cause having heretofore been submitted to the Court on jurisdictional briefs and portions of the record deemed necessary to reflect jurisdiction under Article V, Section 3(b), Florida Constitution (1980), and the Court having determined that it should decline to accept jurisdiction, it is ordered that the Petition for Review is denied. No Motion for Rehearing will be entertained by the Court. See Fla. R. App.-P. 9.330(d) . ALDERMAN, C.J., ADKINS, OVERTON and McDONALD, JJ., concur BOYD, J., dissents A True Copy TEST: Sid J. White Clerk Supreme Court- / \'--Y-9,"T Deputy Cle • n TC cc: Hon. Louis J. Spallone, Clerk Hon. Gerald T. Wetherington, Chief Judge Hon. Richard P. Brinker, Clerk Mikele S. Carter, Esquire John H. Thomas, Esquire Joel V. Lumer, Esquire Evan Langbein, Esquire 82--'726