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Home My WebLink AboutM-78-0532GO cD/a 1NG THE SOUTH'S LARGEST CIRCULATED BOATING MAGAZINE 261 S. W. 6th STREET 2:147 T 'tYf July 26 3 1978 Mr. Joseph Grassie City Manager City of Miami 3500 Pan American Drive Miami, FL 33133 MIAMI, FLORIDA 33130 Dear Mr. Grassie: As a member of the Miami Marina Review Committee, I would like to briefly present my opinions to you regarding the lease/management pro- posals and marina trust proposal. I will be out of town on Friday, July 28, 1978 and will not be able to attend the public hearing. In addition to being a member of the Review Committee, I am the publisher of GO BOATING, immediate past president of the a iartineectore uncil, First V.P. of the Marine Industries Assoc. of Florida, p of the Greater Miami Marine Association and Immediate past president of the Admirals of the Fleet of Florida. There are four areas which I would like to address: (1) Mr. Ike Iaconis (2) Dinner Key Marina (3) Miamarina and (4) Marina Trust. 1. The statements of Mr. Iaconis at the June 22 Commission meeting were not entirely the views of the majority of the Review Committee. His bitter attack on one of the proposers was entirely unjust and uncalled for and did not reflect the views of myself or Mr. Sawyer, the other committee member. Also, his reference to marina operations favorable to the Marina Trust proposals were again not discussed by the committee and represent his own personal views. Mr. Iaconis was selected Chairman of the Review Committee by a draw of straws and I feel that he misused his position as chairman by expressing his personal views as that of the report of the Committee. I believe he should have disqualified himself, since we now know that he is an outspoken advocate of the Marina Trust which tiso odidirectly ylinjconflict with the Lease/ Management Proposals which he was continued mai Ewa w mmmw MEW 1 1ME 1MEM MIME MEW maimm MMEME IMP ■ BIM July 26, 1978 Mt, Joseph Grassie City Manager City of Miami 2. Dinner Key Marina► It is my opinion that the proposal of Dinner tey Marina, Inc. offers the best in management and financial return to the City, The experience of Mr. Spencer Meredith and Mr. Robert Carter in the operation and management of the marina is considered to be superior. 3. Miamarina. Although Biscayne Recreation Development offers the City the greatest financial return, it is my opinion that the proposal of New World Marina, Inc should be strongly considered. Their plan calls for many innovative ideas that will greatly enhance Miami's reclamation of being the "Yachting Capital of The World", a title that has been taken from us by our neighbors to the North, Ft. Lauderdale. The yachting world knows of Pier 66 and Bahia Mar. I believe that Miamarina can surpass this status and New World Marina, Inc offers the best opportunity to achieve this. This is one case where innovation should be considered, not just dollars. 4. Marina Trust. This proposal is born from the Marina Tenants Associ- ation and is, in my opinion, organized solely to keep low rates at the City's marinas. I agree entirely with the comments of Mayor Ferre that the public officials are elected to run the community, not to create authorities to do the jobs and that in luxury or recreational facilities, that if you can involve the private sector you are much better off. Mr. Pete Sawyer, the third member of the Review Committee is out of the country at this time and will not be present for the July 28 hearing. He has, however, previously reviewed these views and is in agreement with the opinions in this letter. Mr. Grassie, thank you for this opportunity to serve the City of Miami. I particularly want to commend Dick Fosmoen and Clark Merrill for their extraordinary cooperation. I do hope that I can be of service to you and the City in ehe future. RRC:oa Sincerely, Richard R. Cummins Member, Review Committee ='a 108 : fit: Spencer, B. Meredith tesi dent ()inner Key `arinn lncorpornte 2951 South iinyshnre Drive Suite 11E Miami, Florida 11111 1)enr Mr. Meredith: 'Reference is made to your letter of 1" June 1q78 relative' to y :proposal for several hri dReq in Biscayne i±ny at tale Cli rtner 1ev Marina. IIIIF tam =MEr MMEMW mommmo It would be i nappropri nt.' for the Coast Cunr3 to comment on your proposal ilnt i 1 nn nppl i cnt i nn has horn race i ve0 nntl wn have solicited public_ comment through our public notice process. The Coast Guard wi11 accept applications for bridges 1 and 3 to provide pedestrian r'ccess to the northern i s1 nncl anti pedestrian/tram access to the sonthrrn ieland, We wnul,l expect significant public opposition to the proposed hri ripe from bier 1 to the center island unless it were designed to provide n Minimum vertical clenrpnce of 65 feet above mean high water. if a fixed structure is proposed. or 21 feet in the closed position. if a moveable hridre is proposed. Should you have any add i t i ona l questions relative to permi.t requirements. my staff will he hippy to assist you. Sincerely yours. W. .T . 13ROG DO'S, JR. Captain United States Coast Guard Chief, Aids to Navi,r.,ntion Branch Seventh Coast Guard District 13y l'irection of the District Commander.': MEM ✓ EL MMMK ME▪ W 1 Dinner Key Marina, Inc. Monthly income to the City (After Debt & i)Res' e) Month Gross Income to No. Revenues City 1 Piers t, .4�>�`_ 43,339 2,167 2 43,339 2,167 3 Moorings I 44,014 2,200 4 tI 45,454 2,272 5 45,454 2,272 6 45,454 2,272 7 Piers 2,3,4, 64,739 5,332 8 Docks .1, G 64,739 5,332 9 Moorings I,II, III 64,739 5,332 10 64,739 5,332 11 64,739 5,332 12 64,739 5,332 13 Pier 3 83,069 8,343 14 Docks A,B,F,G 83,060 8,343 15 Moorings I,II,IIT,IV 83,060 8,343 16 83,060 8,343 17 83,060 8,343 18 83,060 8,343 19 Pier - 110,048 15,887 20 Docks A,B,C,E,F,G 110,048 15,887 21 Moorings I,II,III,IV 110,048 1515,887 887 22 110,048 15,887 n 2324 110,048 15,887 ?1t,,5/o. Reserve'Acct. 25 138,745 22,343 (16.1) 1.38,745 24,077 (17.3) 26 Moorings I,II,III,IV 27 1. or (Min. Goan. of $180,000) 28 2. or (25% of Income 268,116 Available) 29 3. or (507 of Net Income Annual whichever is greater) • Total First Year to City: 45,342 Total Second Year to City: 145,380 Total Third Year to City: 268-288,000 288,924 Annual MARINE WILDERNESS SOCIETY' 103 Aragon Avenue, Suite 7 Coral Gables, Florida 33134 xhiS'r i :the jointstatement oj the Marine dilcierness Societi Sierra Club t lorida Chapter Marine ConserVation Committee, and the in regards to the proposed redevelopment and expansion of Dinner Ked Marina. We recognise the pressing need for additional Wet boat storage;: in :Dade Countd. A large- proportion of both oj our organization's memberships own boats. And we are ail in agreement that the shortage of boa t slips and rzoortfl?3 in our area is serious. irzereJ ore, we support the Cite of Miami's intent to expand Dinners Ked j aci li ties j rorn they current 371-boat capacity to a new 600-plus capacity. Jiowev+er, we also maintain that this goal can e attained -- and MUST be attained -- with the absolute minimum impact possible on the ecologd and topography of our submerged lands and their attendant islands. this e;`j ect, we earnestly rcauest that the .Citd Commission' incorporate the jollowinig considerations into their cha.icp for the expansion of Dinner Key Marina., 'inal proposal MEM MMEW mem BEEF MME MEM mmm mmm mmm mmm ENW bring serious it 't, it is unnecctie'a + o tt ae rtak2 cindttruct'clvtt ort aez)elopr ' tent dti f1)V of ti. spi7iL lisle,>Icta to attain'a 510-alip rnaririczr turrthermore, in our View it is completely u>tnaeceptabte aria zJ categorically oppose ,it At least two, if not allth'ive3` Oj the proposals now > ejore.' 1bU inC'l`icde th%i.t orOitide i2 50C boat . ii.p cont within the r '?ain i`,an2--L%a seal harina [:aoin This meets is the i ty j5 own bidreauirelrtcth ts. aJaaucz to id without touchin:l the spoil ii l 2fl2's :' tie tipc t3 the Coconut Grove :;-ailing Club to a Nark Rubin, izas . inj ormeri O It t 7 to the relocation oj.. 7:n South. 1 land. Mister ina Cormouorc Oj tilt', Cbe' C7rnu t Grove 3ai t,vnJ Club, us thtz t the j " would line to retain where (they) their) preference is C: to relocate,'..," rrom our ,eva- luation, .' such,a relocation would ha r1 to 't.he ecOZojd, of South Te and frivolous ;Ve will also steadf astlj work to defeat and attempts to provide automotive access to any spoil island; or to clear and/or fill an3 sections o}' any spoil ioland for the purpose of constructing marina facilities -- or for any other development purpose. Additional. wet Loaf storage, well bej.ond the City's 500-count, ,.xda l is easi l j attainable oy the use of moorings. This again rein) orrces .our position that nv spoil .island development is ■ ■ ■ • ■ ME ■ ■ ■ ■ ■ ■ ■ ■ • ■ As 'i r at moorings are conoernedi tieriuupoPt their establishment da l:eng as it dees not involt)e and destructs e2 •dredging or anj other measures that will adverseid af_ject bad bottom eooload. At least one of the proposals' before dou shoals that WO neri paid i"t+Jorintia can bo net up within the inside perimeter of the spoil is landu, without artificial 4 rcakwater:; and without dredging.. We r for dredging and dredginbe;!ond the absolute minimum required or the navigational maintenance of the main basin and presentl existing channel Bj the judicious allocation ,of mooring space based on yarding boat draft, the existin bottom contours will in fact dield over :.;O0 such mooring spaces wile still maintaining the environmental intogritd of these submerged lauds. To those who contend that these submerged lands are dead, we simpld sad: not so. The grass beds surrounding sections of the spoil islands provide a habitat for populations of sea trout, mutton snapper and mangrove snapper. The mangrove concentrations on North Island and parts of the other islands support abundant hermit crabs, numerous invertebrate species, and the juvenile fr1 ••oj nand fishes. And the waters and silt bottom itself are Emmom MEM mom sfr s wimmw muserk EMMM mom IIIIIIIIIIIIIIuu■■ i MM and more, There] ore, again) dredging} for anything other than navigational,' maintenance is OUT 01, THE keU, STION, And any clearing or ,pilling. of mangroves and shallow bottoms surrourtdingx the spoil islands is also objectionable jor the same reasons. 8o tJ/ta t, ij anything, can or should be done with the islands? Our earnest recommendation is that they be as limited -use parks and wildlife preserves. Contrary to at least one proposal before you, we do spoil set aside. not consider Center island to be a Logical choice jor a wildlife preserve. This island is the most visited one currently. It is the only spoil island :with sand beaches jor public enjoyment and the traditional careening o f ;oats. It is the most accessible one to . the public. Thus, we are convinced that Center Island is much more appropriately suited to limited park use. On the other hand, South .Island is the ideal and most logical choice jor a true wildlife preserve. It offers enough area to function properly as a preserve. It is more isolated and less ireauen ted than the other spoil islands. And, most importantly, it has acquired its own bird colonies and varied sauna in a stabilized habitat. Therefore, we strongly urge the City Commission ti EN 11111 FEMME MMMK mmmm -9411 ■ 1 -311113-, MUM ■■u■iiiiui ■i■ to i zeorporate into their ,jinai pr pot re j age and prederl)c on South Island. In dz.scucnions with Mister Richard Cummt;nd, poet ?'crrdent R� the ,Marine Council and !'member o, the Citj'a Dinner AEd propodal: sereeninU committee,, iie hlz 2 agreed With u.r' that the boating public'S overriding concern in that wet boat storage at ; r boating kej be si�:nij icarz.t Z j increased, and that support J(ZciI'Ltie.s be upgraded and F',i�j,2Ct ntL�-'l.ianaytie:.. 1'.O ZLou)i>l(j our )'Ecomrendatie id i,)C tilLfi' f)Ii: is, clear i:ha ' :i.Z Combined to aZnc:it ii:.'2 ble the present capacit,j at • Without filling S of L ✓.S Zi ndt an ✓inner, 1,ri?ckin& tfleir Y1aystat3. ithout dre.grog that will see-touSZfj CCOtoj., or c o n without of ect natural bottom. A 3 cdle:ia: , and detrimental vehicular q t.t'IfG'tion oil 'anj of the utZ'1ids . fi2erejore, r, 1 Or, ✓-[,i F _ . ;fuciet1 and r ale �=9rx.r inc Z �:'i rze:i ncs 4'tLry 1 neCo 4. ?� a.acGSS.i `tf3s Sierra CZu1.? xservation ,Committee reepectJ'uiij " Ll'ls st t as t the expansion 0 1. Drone✓ he,j Marina proceed in the 'nanner outlined above to minir:i je environmental i pact and to demons trczt t? die consideration 1 or the ecological in te Jri t4 of (Jar' :>'Lii)11.'.v,if:il L(X.ilda and attenJuizt ial'inds. y ent vari Mir Nuaff lam= ear mmmw MEEK MMIN FEW COIZ:iF?NfJ'" i,i n Comm. ;.l:ZE>tev • • • • mm ME mm ■ ■ ■ • MM ■ ■ ■ ■ ■ ■ ■ ■y ■ ■ r With to take just a few Moments of the Commissions tine to 2 nett§ our proposal. When the City requested proposals from interested parties and Outlined the conditions under which proposals would he accepted, Biscayne Recreation complied with the specifications in every respect and was the only proposer to do so. T want to quote several sections of the City of Miami's lease proposal specifications particularly as they pertain to Dinner Key Marina. From Mr. Grassie's covering letter and T quote: "The City of Miami r has adopted a 'Master Plan for the Dinner Key arca which will he used as a guide for future development." "The attached general conditions and documents describe the infor- mation to be submitted and the sample lease provisions should provide a general understanding of the type of lease to he nepotiated." A. Page 1, Proposal Document: "A" All proposals shall he submitted in accordance with the instructions to proposers as contained in the Proposal Invita tion Documents. ruing now to the Proposal Documents, Pape 2, Paragraph 2: "In an effort to achieve the objectives of the 'Master City Plan stated in paragraphs, 2D, 2E, 2F and 2C, gapes 34 and 35 of the Master Plan: 2D 'Maintain existing volume and direction of current flow. 2F States the need for many more slips by 1985, the objective is to add 630 new slips for pleasure hosts (incidentiv, these are located off -shore on an island reached by a vehicle bridge) 2G "Reviews of the project area reveals that while the islands can be used for recreation, it is virtually impossible for ENKFOK • Illit SIM mmk n ffn mmEmr OMMEk oiew unimim mommk ...w M- M▪ R mmiwi WNW =I= 1•11•111== =11SIP_A =I= EV the AVetage person to benefit since they Mid noW ifi accessible except by boat." 61t4 thiS is Very important to our proposal, again Pape 2, Proposal Docurent: 'It is estimated hv the City that the improvements reauired to he made to the existing facilities will require an expenditure of approximately 2 million dollars by the successful proposer and that the marina exnansion will require an expenditure of approximately another S million dollars by the successful proposer. Proposers should have the financial capability to provide funding of at least this amount. We have this canahility. Our Company planned the expenditure of 2 million dollars for extensive improvements: in the 1st phase, a new electrical new docks at two year intervals after completing our plans, new bait house facilities, completely shower and rest room facilities, new pilings, new a new gazebo; the list goes on. This planned expenditure of private funds has a direct hearing on our system, new water sunply, the 140 new slips shown in renewed marina office, new planking, new landscaping, proposal. In the William Hough Company letter, they used apples and oranges in their analysis. They used a proposal based on revenue bonds to corpare to our proposal based on private funding as we were directed to do by the spec- ifications. If the City now desires to fund this project from revenue bond issues instead of private funds, we are competent and ahle to place these honds through substantial brokerage firms and we are agreed that the difference in sums of interest rates between the bonds and commercial financing shall accrue to the i■ 11■II IIM ■ Page City, This will increase the income to the City Under our program by h ftlhiMUm of $72,000 per annum. Under bond issue financing, 1iscayne Recreation Development is perfectly willing to reduce its lease requirements from 40 years to 12 years plus a 10 year option for renewal. We believe that a 4 year program is unrealistic as we estimate it will take at least 2 years to secure the permits necessary to expand the present facilities. We have counselled on numerous occasions with the regulatory agencies such as the U. S. Corp of Engineers, D. E. R., U. S. Coast (Guard and have retain the services of Crowder -Mahoney Associates, Rodriguez-Tellaheche Architect and are confident that our proposed designs are sufficiently adaptahle to meet all requirements._ Our estimate of proposed slips is extremely conservative and in fact, we believe that the possibility for more sli_ns is most likely based upon studies that were made by experts. Several other factors I would like to bring before this Commission: First, our guarantee of 5150,000 is from day one. Dinner Key Marina, Inc. does not start any guarantee until the completion of all the docks; 2 years, 3 years, when? Their payment to the City is not on gross receipts, but on the first 25% of income available for distribution or 50! of net pre-tax profits - they didn't have any profit thru 1976 on their operation of Grove Kev Farina - when will they have a profit to distribute on Pinner Key? This package they submitted is the real hypothetical case. As a business -man involved in day by day activities in real estate leasing, I do not know of any owner who would lease to a proposer any and property for a share of the operators profit as determined by the operator. ■ • M. ■ mm ■ ■ ■ • ■ ■ ■ ■ ■ ■ Page Leases are made with a guarantee (incidently out guarantee foi' g00 slips is $175,000 not $150,000 or a percentage of the sales or gross incone whatever is greater. Most of you, unlike the staff, are business people and I am certain that in any business proposition concerning a lease or management arrangement, you would insist upon a percentage from gross revenues. Every other lease the City has is based on a percentage of gross receipts as far as I know. Biscayne Recreation arrived at its plan for development and expansion after days of consultation with professional people of the agencies responsible for hearing and approving such projects, many plans were considered - some discarded.. We have been mindful of the enviromental concerns existent in our proposal. We have retained the best environmental experts in the field to guide and advise us in our design and structure in order to assure that no irreparable damage is done to the area. Dr. Teas, of the university of Miami, his associate, Dr. Lodge, have guided and advised us so that not only do we not injure the life existent in our waters, but we actually enhance the growth of fish and plant life. We have been told by a member of the Corp of Engineers; "fentlemen, I like your plan because your plan is the only one that has any potential for increasing the size of the Marina and full -filling some of the needs of the boating public." Biscayne Recreation Development has retained the best talent available in the areas we are working. We are aware of problems and are confident that our adaptability and practical approach is by far the best proposal before the City today. ■ Mayor and Members of the City Commission Joseph R. Grassie City Manager / CItY OF MIAMI. FLORIDA iNtER•OFFICE MEMORANDUM bAtq, July 25, 1978 "Jtct: Marina Lease Recommendation tNCLbsURES: After considerable evaluation of the proposals that were presented to the City for the management of Miamarina and the development and management of Dinner Key, and after a thorough evaluation of the separate alternative of creating a marina trust to be responsible for all marina development and operation within the City, the re- commendation of the City Manager is as follows: 1. That the City immediately proceed to negotiate short-term management contract with Biscayne Recreation for the operation of Miamarina. 2. That the City begin negotiations with Dinner Key Marina, Inc. on a construction management contract for DinnertKey management t contractex- ceed 4 years, and an additional short-term operating contract for the entire facility. 3. That the City proceed to raise the capital required to improve Dinner Key and Miamarina through the issuance of revenue bonds guaranteed by the improved facilities. 4. That the City work with the successful management firm of Dinner Key in the preparation of necessary plans to obtain permits for the expansion of Dinner Key Marina in accordance with accepted marina design standards. 5. That the City begin negotiations with Coconut Grove Sailing Club for its expansion and relocation. 6. That the City work with the successful management firm of Dinner Key and with the Coconut Grove Sailing Club to expand boat mooring facilities in the Dinner Key area immediately. 7. That the City Manager be authorized to appoint an advisory committee ME lao for EE to assist the City in the development of a marina master p the City. The acceptance of these recommendations would constitute a policy choice on the part of the City in favor of private contractomangemint ME of its marina facilities in contrast to further pursuing proposalschoice MO volving the creation of a Marina Facilities Trust. This policy is recommended to the City Commission. ■ OM C17Y OF MIAMI. FLORIDA tNtER.OPFICE MEMORANDUM Joseph R. Grassie City Manager rk Ie r 11 ssistant to the City Manager DATE! JUL 2 6 1978 SIA9ACT. tlEFERENCE9• ENCLOSURES: FILE City Marina Proposal Evaluation The City Commission, at its June 22, 1978 Meeting, requested the staff to make an additional evaluation of the three Miamarina proposals that were selected by the "Marina Proposal Review Committee". Since the proposals for Dinner Key were different in the method by which the construction financing would be arranged, the City utilized its bond consultant, William R. Hough & Company, to make a financial review of the marina proposals. That report is presented to you separately. In approaching a review of these marina proposals, we listed the most important areas that need to be compared before a decision on which proposal is the best for each of the marinas. They are as follows: 1. Experience 2. Fiscal Consideration 3. Financial Qualifications 4. Professional Experience 5. Marina Improvements Proposed 6. Environmental Considerations & Problems 7. Potential Taxes 8. Achievability 9. Effect on Boat Slip Rentals & Rates Aside from attempting to compare conventional financing with tax free municipal bonds (apples vs oranges), we had the greatest difficulty in evaluating the permitting capability and for that matter its possibility based upon the plans submitted with each proposal. We had meetings with the staff members of both the Florida Department of Environmental Regulation (DER) and the U. S. Army Corps of Engineers (Corps). The DER, in addition to issuing dredge and fill permits, also participated with the Department of Natural Resources in the control of the Biscayne Aquatic Preserve as required by State Law. The Corps works closely with DER and together provide the best analysis on what can be done to expand the City of Miami marinas. That evalua- tion will be described in Section 6 of this report. - 1 - Zosepb R. Gtassie City Manager There are, of course, many other agencies that will be involved ib determining to what extent the City will be able to develop the Dinner Key Marina. Some of them are: the South Florida Regional Planning Council for a Development of Regional Impact Approval, the U.S. Coast Guard for a bridge permit, the County for a Coastal Construction Permit, the U.S. Fish & Wildlife Service, the Florida Game & Freshwater Fish Commission and many others. There are also a number of citizen environmental groups who are sincerely interested in preserving the aquatic resources of this area, and who will undoubtedly participate in the many public hearings that will be held before work on marina expension can begin. It should be noted here that the permitting process is difficult and time consuming, but it is not impossible. Mitigation of the harmful effects of dredging and filling and other construction becomes an important alternative. The report now follows: Section 1 Experience Question - What experience qualifies each proposer to achieve the goals as described in their proposal? Answer - A. Biscayne Development Company •- Paul Walker, former President of Richards Department Stores and Vice Chairman of the Downtown Development Authority from 1965 - 1974, are but two of many references listed in the proposal that give Mr. Walker excellent business credentials in the Miami area. With Mr. Walker is James B. Sprague, who is a former Director of the City's Yacht Docks from 1964 - 1972, and is currently working for the Miami Beach City Manager as a staff assistant for the new 400 slip marina facility. Mr. A. W. Crowder of Bristol, Childs, Crowder & Associates, Inc., who has marina experience in the Virgin Islands, among other places, has been an engineer in Miami for over 20 years. Mr. Murray Dubbin, a former State Legislator, has had experience with the State permitting laws and serves as Vice Chairman of the Environmental Committee of the Florida Bar Association. Also, there is Tony Rodrigues, Architect and Arthur Darlow, a former Director of Miami Department of Engineering (Public Works) and former Director of the Port of Miami. This firm is capable of achieving its proposed marina goals for Miamarina or Dinner Key Marina. B. Dinner Key Marina, Incorporated - Headed by Spencer B. Meredith, who is presently the City's lessee and President of Grove Key Marina, and has a good marine -oriented background and has put together a team consisting of Mr. J. Richard Bell, who has been MI Vice President of the Banking/Brokerage House of Drexel Burnham MO Lambert, Inc. since 1971; Carey 0. Cook, Vice President of Morgan p Fmmw NOW MEME • Joseph R. Grassie City Manager Stanley & Company, Inc.; Mr. Homer L. Marlow, Esquire, Senior Partner of Marlow, Shoti, Ortmayer, Smith & Spangler; Mr. William M. Walker II, Vice President of N. D. Meyer & Company; and Mr. J. Robert Carter, with a long history in boating, served as President of Richard Bertram & Co. for iCvolvor in seven of the 25 years he has been professionally capable of the boat business. This team appears achieving their proposed goals. C. Ecclestone Management Company - Mr. E. Ll*yd Ecclestone is the President and sole owner of the Ecclestone Management Company. While not listing a long list of affiliates, this company has the most recent marina construction experience of any of the proposers. Mr. Ecclestone built a 600 unit condominium, which included a 260 wet slip marina. His accomplishments in the real estate development field are numerous, including an agreement to build a U.S. golfing headquarters, three golf courses, a National Golf Club and a Hall of Fame for the 8,000 member qualified Professional Golfers Association (PGA). This Company is to achieve its proposed goals for either the Miamarina or the Dinner Key Marina. D. New World Marinas, Incorporated - Represented by their attorney, Mr. Thomas R. Post; the President of the firm is Gladys Dubbin, with her sister-inDorothy roundedabackgroundTreasurer innmarined eandy. These ladies each have a marina operation experience in South Florida and the Bahamas. Presumably, they worked for the same companies at the same time, but in different capacities. Also working with this team is Rear Admiral Irvin J. SfeMiami,DirectorCoast forGuard, sixtyears,who is was formerly the Port o now working on his "third career" as a member of the Board of Directors of The First Fal Savings environmentalllaw,nand of Miami. With Mr. Post sbackground having served as a SpBoard,ial Mthisrcorporationfor the disCqualifiedounty ptoty Appraisal Adjustment operate and manage the Miamarina. Section 2 Fiscal Consideration Question - How do each of the proposers compare in their pledged revenue to the City? Answer - A. Biscayne Development Company 1) Miamarina - The proposed rate of return to the City was a minimum of $150,000 per year or 31.5% of theshe grotss revenue whichever is greater. This is by far - 3 ■ • IC MEM MEM MEM ■ Joseph R. Grassie City Manager the three proposals for Miamarina. If the cost of operation cannot be maintained at a much lower level than the $411,000 estimated by the City's Marina Division, then our financial consultants believe the proposers will have great difficulty in meeting this obligation. In any event, the projected revenue under slightly higher rates is $586,278, assuming full occupancy (present occupancy is running at approximately 78%), the return to the City would be $184,677 (See pages 3 & 4 of the July 21, 1978 William R. Hough Report). During the last fiscal year, the City realized less than $15,000 from the operation of Miamarina. 2) Dinner Key Marina - The proposal rate of return is $150,000 minimum guarantee until 500 slips are achieved in Phase I of construction, at which time the minimum will be raised to $175,000. The proposer envisions 1,300 wet slips in six years when the minimum would rise to $400,000 per year. In each case, the maximum rental would be based upon 15% of gross receipts. Environmental permitting agencies tell us that the 1,300 slip level would be extremely difficult, if at all possible. Based upon 500 slips and 200 moorings, the income to the City would be $186,179 or less than both Dinner Key Marina, Inc. and Ecclestone Management Co. B. Dinner Key :Marina, Incorporated 1) Miamarina - Not recommended by the Marina Proposal Review Committee. 2) Dinner Key Marina - This proposal is unique in that it calls for a management contract and the use of the City's capability to issue tax free municipal revenue bonds. It is our understanding that this type of project financing could be used by the other proposers as well. The distributions between the City and the proposer of proceeds after expenses as opposed to a percentage of gross revenues was also unique. There are some problems of cost control under this arrangement, and there is doubt as to what the proper percentage is that should accrue to the City; however, it does place everything on an open and fair basis. It is important at this point that in the proposal specifications, the City has reserved the right to negotiate the actual rent at a later time. The purpose of the formula rental was to deal with several unknown costs such as taxes (if any), debt service, insurance, etc., particularly during construction when revenues are low, i.e., DKM does not propose to increase dockage rates until the tenants are shifted to newly constructed docks. ■ ■ i MEM MEM MEM ■ ■ ■ ■ ■ ■ Joseph R, Grassie City Manager • When construction is completed, the proposer Will give reVefUUe distribution formulas: (1) 25% of Revenue left after deducting a) Debt Service b) Insurance c) Major Repairs d) Ad Valorem Taxes, or (2) Minimum of $180,000 per year (no additional %) or (3) 50% of revenue left after deducting all costs of operating the marina Based upon the hypothetical 500 slip - 200 mooring marina with a gross revenue of $1,241,191, the City would receive $244,468 or the highest return of the three proposals. C. Ecclestone Management Company 1) Miamarina - Minimum payment to the City would be $50,000 plus 25% of the gross rental income between $300,000 and $400,000, then 30% for all rental income over $400,000. Based upon a projected yearly revenue of $586,278 the Ecclestone Management proposal would bring to the City $130,883. It should be noted that unlike Biscayne Recreational Development Co., this proposal contemplates payment of taxes by the proposer. We agree with the proposer that the amount of the tax is estimated to be $30,000 or less for Miamarina. This proposed rate of return to the City is the second best proposal. 2) Dinner Key Marina - Minimum payment would be $50,000 plus 20% of the gross rental income between $650,000 and $800,000 and 30% of gross rental income over $800,000. Using the hypothetical 500 slip - 200 mooring with an income of $1,241,191, the City's return would be $212,357, which is second to Dinner Key Marina, Inc. D. New World Marinas, Incorporated 1) Miamarina - Minimum rental payment proposed would be $40,500 per year or 10.5% of gross receipts up to $750,000; 15% between $750,000 and $1,000,000; 20% of all over $1,000,000. Under this proposal, taxes would be paid by the proposer, which were estimated to be $100,000. We believe the actual tax to be closer to $30,000. Based upon a hypothetical annual income of $586,278, the City would receive $61,559, the lowest of the three proposers. Even if the taxes did amount to $100,000 this proposal would not i MEM MEM MEM MEM Joseph R. Grassie City Manager equal the amount proposed by BiSCayne teoreatioh beVeleipMeht Company of $184,677. 2) Dinner Key Marina - Did not submit a proposal. Section 3 Financial Qualifications Question - What evidence was submitted by each proposer to indicate financial capability to complete the project as proposed for the Dinner Key Marina? Answer - A. Biscayne Recreation Development Company - The proposer plans to spend $2,000,000 on redevelopment of the existing docks, $7,000,000 on expansion of the marina facility by 800 new slips and $500,000 on a new restaurant at the Seminole site. To secure these funds the proposer has submitted a letter of intent to provide $9,000,000 in financing from Financial Development Investment Corporation dated March 28, 1978. Also submitted with the proposal was a letter of interest and intent to provide initial investment capital for the project. Assets of the Company are listed in the proposal at $347,214. Although there is no absolute assurance that funds will be available for this project in these amounts, we are reasonably assured that this proposer will be able to secure financing for this project. B. Dinner Key Marina, Incorporated - Under this proposal, the City would issue tax free municipal revenue bonds to be repaid entirely out of Dinner Key revenues. The proposer has included in his proposal a legal opinion from the law firm of Shaw and Segall that concludes that the City could issue such bonds. This arrangement does not require any investment on the part of the proposer. Under the management contract, the proposer would stimulate interest in the sale of the bonds; however, the City would remain responsible for their repayment. The proposer has several stockholders who are involved in the sale of bonds. The companies represented are: N.D. Meyer & Co., Paine & Webber, Inc., Morgan Stanley & Co., Drexel, Burnham, Lambert, Inc. and Thorndike, Doran, Paine & Lewis, Inc. Since this proposal deals with municipal bonds, there are no commitments from financial lending institutions. The presumption, therefore, is that this proposer can achieve the proposed financial goals of this project if the City commits itself to this method of financing. William R. Hough & Company recommends this type of financing as the least costly of all methods proposed. Joseph R. Grassie City Manager C. Ecclestone Management Company - Mr. L1wyd Ecclestone, Jr. is the sole owner of this company. Furnished with the proposal is a letter from the Southeast First National Bank of Miami offering an 18-24 month construction loan with permanent financing coming from a long-term lender and signed Assistant Vice President, Mr. Howard Duckworth III. A letter from the Southeast Mortgage Company states that a major insurance company would be interested in the leasehold mortgage and signed by the Vice President, Mr. R. W. Barrett. To conclude Mr. Ecclestone's demonstration of financial stability, the proposal also contains a letter from the President of the Bank of Palm Beach and Trust Co. extending to Mr. Ecclestone a personal line of credit in the amount of $1,000,000 through August of 1978. We believe that Ecclestone Management Company is financially capable of achieving the goals as outlined in their proposal. D. New World Marinas, Incorporated - Did not submit a proposal for Dinner Key. Section 4 Professional Experience Question - Does each of the proposers have the necessary's experience to complete the project? Answer - A. Biscayne Development Company yes, areas of demonstrated professonalcapabiltyareasfollow: 1) Design & Engineering - Mr. Tony Rodriguez of Rodriguez, Tellaheche Associates, Architects, and Bristol, Childs, Crowder and Associates, Inc. - both local firms. 2) Environmental - Dr. Howard Teas, University of Miami Marine Biologist 3) Legal - Murray Dubbin, Esquire, of Dubbin, Schiff, Berkman and Dubbin 4) Marina Management - James B. Sprague, former City Directo of Yacht Docks `: Joseph R. Grassie City Manager 8. Dinner Key Marina - Yes, areas of demonstrated professiona1 capability are as follows: 1) Design and Engineering - Kunde, Driver and Simpson Associates, Inc. 2) Environmental - 3) Legal - Homer L. Marlow, Esquire, of Marlow, Shofi, Ortmayer, Smith & Spangler 4) Marina Management - J. Robert Carter, of Richard Bertram's and Spencer Meredith, President of Grove Key Marina C. Ecclestone Management Company - Yes, the areas of demonstrated professional capability are based mostly on the personal professional capability of Mr. Ecclestone to successfully complete dozens of large scale developments, including a 260 slip marina at Old Port Cove near West Palm Beach. The proposer is silent on other members of his organization, except that he intends to bring the Old Port Cove Marina Manager to Miami if the award is given to Ecclestone Management Co. Post, Buckley, Schuh & Jernigan, Inc., are the engineers for Ecclestone Management Co. D. New World Marinas, Incorporated - Yes, the areas of demonstrated professional capability are the extensive marine background of Gladys and Dorothy Dubbin, who have served in a wide variety of responsible management positions in marine and other corporate businesses. Mr. Thomas Post, Esquire, and Admiral Irvin J. Stephens should provide the necessary corporate leadership to operate the Miamarina. Section 5 Marina Improvements Proposed Question - What marina improvements are proposed that are different or unusual? Answer - A. Biscayne Recreation Development Company 1) Miamarina - Provide extensive advertising and promotion, add equipment and utility provisions to upgrade the convenience factor of the docks and clean up and landscape the marina. 2) Dinner Key Marina - Add a new electric and perimeter lighting system, add over 900 new boatslips (if feasible), build a gazebo at the landside end of Pier 5, create new decorative entrances to the docks, build a causeway to the mole closest to Pier #1 (if feasible), improve dockmaster's office to - 8 • • 111 Joseph R. Grassie City Manager include new tenant facilities and a weather information chart room, construct a new two-story restaurant at the Seminole site, establish an advisory board to include dock tenants and others, and publish a bi-monthly information bulletin. B. Dinner Key Marina, Incorporated 1) Miamarina - Not Applicable 2) Dinner Key Marina - Extensive landside development was with= drawn by the proposer, leaving the following as some of the unique differences from the other proposals. Develop the mole islands into useful recreational park areas by construct- ing bridges to the northerly and southerly mole islands, create an underwater skindiving park just west of the center mole, construct a Mike Gordon's Restaurant at the Seminole site, completely replace the existing five piers with seven new piers with 527 slips, building them two at a time so as not to disrupt the existing tenants, establish an ad hoc advisory committee of marina and community interested citizens, maintain the sailboat rentals and commercial shrimpers as a part of the marina development, add 375 moorings (if feasible) and build some fishing piers on the mole islands. One interest- ing concept that appears to attract the positive attention of the permitting agencies is the construction of a habitat breakwater, a fish spawning area, to be made out of the remnants of the old piers as they are removed to make way for new ones. C. Ecclestone Management Company 1) Miamarina - Correcting unspecified deficiencies at the marina that they discussed with their engineers such as the wave barrier. 2) Dinner Key Marina - Construct 520 boatslips on seven new piers and removing the five old piers without disrupting the tenants, provide 200 new moorings, construct a new convenience shop and two-story snack shack on the Seminole site, provide new tenant facilities in a two-story dock - master's office, restore the City Hall basement facilities and construct a pedestrian bridge to the southernmost mole island. D. New World Marinas, Incorporated 1) Miamarina - Institute a beautification and repair program, maintain a continual basin cleaning program, add a fuel dock, ship stores, laundry, information center; increase the number of transient and permanent boat slips, enlarge the dock office, possibly two-story; provide a water taxi service Joseph R. Grassie City. Manager security devices, ihstitute with new secur to Matson Island, equip financial an aggressive promotional program, implementl ffinanlcitals, control system, develop small boat launching expand civic use of the and1rimanage sanitaryWatson IpumPd� trservice. pending its replacemen provide Another unique approach in this proposal is torbridgnthdiscount merchants and the boaters closer storestogether a downtown shuttle povig merchandise at participating proposer does not propose a rate service. In addition, the prop increase, but he does propose to hire all of the existing marina personnel if they choose to stay. Section 6 Environmental Considerations and Problems Question - What parts of each proposal may not be achievable? Answer - Miamarina - Generally, none of the proposals have environmental problems with the exception of the thavettold usof athat wave the rlack. State and Federal permitting officials of natural flushing prevent the use of a wave barrieroas it would tend to further restrict any existingflushing The Ecclestone Management Company played it safe Dinner Key possibilities of all and therefore, has the best permitting p three proposals. The Dinner Key Marina, Incorporated has some dredge and fill that permitting agencies advise us is almost lm steimpd ossible about to200accomplish. have to be his Their 375 moorings may beneficial qualities, proposal does have some environmentally however, including the habitat breakwater and an underwater park. Biscayne Recreation Development Company's plan is the most environmentally 4 difficult to achieve. They have concluded that Phase 4 which utilizes the south center moThisle ssame planfor aislshown wet slips will be impossible to achieve.Master Plan': Agreement on as part of the much touted "Dinner Key the environmentally this part of the project is universal among sensitive. It is also unlikely that the remaining plan submitted by this proposer will maintain either tesame inconthfiguratr tion Key the same number of slips. The chief problem bay area is the very shallow water and the newly emergingturtle grass. There is also the problem of building a bridge along Pier #1 over to the nearest mole island.byEnvironmiltalists do not like the resulting pollution causeenvironmentally sensitive areas. Biscayne Recreation Development 10 - IL toseph Grassie City Manager Company can easily provide the approximate Sale number of slips as the other two proposers, The additional slips would be a plus for the boaters. Section 7 Potential Taxes Question - What is the possibility these marinas will be taxed and approximately how much will that amount to? Answer - Mr. Al Blake, Dade County Property Appraiser, has told us that a lease arrangement would definitely be taxed by Dade County and that he would attempt to tax a management contract because a private profit would be made from the use of governmental land. It is not clear if he would be successful since the State law addresses the taxation of leasehold interests and does not mention management contracts. The Dade County tax assessments, as applied to leasehold interests, is confusing. While there are several approaches to establishing the value of the leasehold interests, there is one approach upon which several decisions were made last year by special masters for the Dade County Tax Board. They used the following formula to determine ad valorem taxes on leased property. Assessed Value x Years Remaining in Lease 99 X Tax Rate (Approx. 3% for = Leasehold City, County & School Board Tax The tax burden on the leasehold interest would be reduced as the term of the lease is shortened. For example, a one year lease has a leasehold interest of 1/99th of the assessed property value whereas a 30 year lease would be 30/99ths of the same value. Assuming a 30 year lease and a value of $3 million replacement value for Miamarina, the tax would be as follows: 30/99 = 30.3% (City and County and School Board) = $27,272 tax of which the City would receive approximately 43% or $11,818 (City 13 mills divided by 30 = 43%). Assuming a $4.5 million improvement at Dinner Key, we can estimate that the estimated tax of $40,909 of which $17,590 would come back to the City (about 30% of that would be for City debt service). If the lease was for one year or in the last year of the 30 year agreement, the tax on the leasehold interest would be 1/30th or for Miamarina $ 909 tax Dinner Key TY767 tax • ■• i ■ the three proposals for the Miamarina, the question may well II m be, "Which proposal will produce the greatest benefit to the m' City?" It is obvious that Biscayne Recreation andifevelorment of produces the greatest revenue to the City II:operation is between $200,000 and $300,000, it coul�, beththe best proposal. However, unlike this first t props, placing it Ecclestone Management Company will pay in a close second place for revenue to the City. Olnhasesother hand, the New World Marinas, Incorporated, p pe ideas on how the marina can be brought ialmuch cccloser r todo thechanical Downtown marketplace through very p linkages. They also have some proposals on how to,improve tthe Miamarina operation as well as providing that seldom opportunity of awarding a City lease to a minority contractor. The three proposals for Dinner Key offer a much more difficult choice, in that the first 500wet are tolwhetherl oorenotlly a achievable. It then becomes question ascan build more slips on Biscayne Recreation Development Company with the mole islands. Their bridge may be on shaky grounds the Coast Guard, who require vea65 carsfontthenimum islandemaycal be even more and getting approval to need that difficult for eirsnacetalThereasons, shalloweven waterowith themay environ- aeniallyal parkingd p grass will allow only shallow draft mentally protected turtle docking in the mole area. Water quality standards must behat maintained and hydrolytic stheles molemust islandmwilltnotscausesure twater the proposed facilities on flow problems. The other two proposals are more environmentally feasible but contain only a few more slips, i.e.: Slips Biscayne Recreational Development Co. 510 (first phase) Marina, Inc. 527 Dinner Key Ecclestone Management Co. 520 Joseph A. Grassie I City Manager The foregoing is only an approach to determining the estimated tax on a leasehold interest.The hasetoldual us thatod ithis absolutely been established. Mr. impossible to estimate the marinas tax at this time. Section 8 Achieyability proposals have the greatest possibility of being Question - Which achieved? Answer - Joseph R. Crassie City Manager Dinner Key Marina, Inc. has problems in attempting 375 fiooringsr some of which will require dredging. There are places that have only one foot of water or less at low tide. It is more likely that the number that will be permitted will be closer to 200 and liveaboard moorings may not be permitted at all due to resultant water quality problems. The Ecclestone Management proposal offers the least environmental problems and also fewer slips and less revenue to the City. Both Ecclestone Management Company and Dinner Key Marina, Inc. will replace all of the docks, which appears to be a plus. The Dinner Key Marina, Inc. plan offers some environmental benefits to the Biscayne Aquatic Preserve which will help in the permitting process. On the whole, it would appear that Dinner Key Marina, Inc. has some definite advantages over the other proposals, such as: 1. A management contract (although not provided for in the proposal specifications) which could avoid ad valorem taxes as well as avoid a legal contest over the bay bottom land reverter clause. 2. The use of tax-free revenue bonds, which, according to our financial consultant, will provide a substantial savings in the cost of obtaining construction funds. 3. Their proposal was the most detailed of all six proposals, with pertinent facts about the environmental permitting process, revenue bonds and several legal opinions in support of their proposal. 4. This proposal provides the best revenue return to the City assuming the hypothetical 500 slip marina used by William R. Hough & Co. Section 9 Effect on Boat Slip Rentals and Rates It should be noted here that the City dockage rates are among the lowest in the Country. It now appears possible that without going above market level rates, the City of Miami can achieve not only two first class marinas but also a fair return on the investment in support of the general purpose government here in Miami. It should also be noted that those who live aboard their boats in the marina pay no City, County or School taxes as a result of paying dockage fees. The City provides free police, fire and rescue services and the City may also be inadvertently subsidizing the tenants with federal CETA funds since the rental 11 Joseph R. Grassie City Manager rate formula is designed to break even after producing approximately $150,000 per year for renovation of the docks, It is possible to obtain quality docks at a fair rental well below the market levels for boat dockage in the South Florida area. LaSurlasy Considering all of the foregOing, a very difficult choice can be made as follows: Recommend negotiations with: Miamarina 1. Biscayne Development Co. 2. Ecclestone Management Co 3. New World Marinas, Inc. Dinner Ee.a 1. Dinner Key Marina, Inc. 2. Ecclestone Management Co. 3. Biscayne Recreation Development Co. MARINA EVALUATION EXHIBITS C MMitSion minutes of June 22, 1978 meeting regarding Marina proposals. B. The July 21, 1978 financial evaluation of the three Miatnarina and three Dinner Key Marina proposals by the Wm. R. Hough & Co. C. Revenue projections for Miamarina. D. Comparative overview of three Miamarina proposals as submitted in writing to the City on March 31, 1978 and recommended by the "Marina Proposal Review Committee". E. Comparative overview of three Dinner Key Marina proposals as submitted in writing to the City on March 31, 1978 and recommended by the "Marina Proposal Review Committee." • • t tXHIBIt A MC • • MEM MEM • MEM 4ARINA Biscayne Recreation Development Co. VfJti 6 ,zz /i7 M/e/i-fr Cohowt.i/ON C//•r� / /'�iu CJ 1 Mayor Ferre: We'll now take up the afternoon agenda, Item 21, the proposals for development of City owned marinas, Dinner Key Marina and Miamarina. Mr. Grassie. Mr. Grassie: Mr. Mayor and members of the City Commission, this public hearing is designed first to hear the proposals from the three firm which have been recommended to you by your citizens' committee and that recommendation was ac- cepted to you in the last City Commission Meeting. After those three presenta- tions are made we would receive comments from the staff on the three and further comments from the members of your citizens' committee. We'll try to answer any questions that the City Commission has. We would start then if this meets with your epproval with Miamarina. Assuming that we are going to go in alphabetical order I believe that Biscayne Recreation is the first group to be requested to make a presentation. Mr. Plummer: Excuse me, Paul, if I may interrupt just a moment. I want to make sure before we start these procedings, it was my understanding and I want the Mayor to clarify for the understanding of all present: Mr. Grassie, as I recall it was said at the time this meeting was set that there were, in fact, six pro- posals and of the six each would be delegated thirty minutes. So I think we should set perimeters before we start. That's what I recall. Mr. Grassie: Could I suggest, there are four proposals for six proposals. You may wish to set a little bit less time for the Miamarina presentations and more time for the Dinner Key presentations simply because they tend to be more com- plex. Mayor Ferre: Well, I would hope that we could set a perimeter of say 15 minutes for Miamarina and half an hour, is that acceptable to everybody, on the others? Is that acceptable to the proposers? Paul? Murray? Anybody else? Okay. Mr. Paul Walker: Thank you, Ms. Mayor, Mr. Reboso, Mrs. Gordon, Rev. Gibson, Mr. Plummer. Biscayne Recreation Development Company was he express purpose ai going into a lease with the City of Miami for the lease of Miamarina as well as Dinner Key. I am Paul Walker, I am President of Biscayne Recreation Development Company. I have been in the City of Miami for some twenty years, mostly in the retail business. Lately I have been interested in real estate and investments. The Vice -President of our company and the Executive Director who is the man in charge of our marina activities is Mr. Jim Sprague. Jim is a former commander of United States Navy serving in the Navy from 40 to 63. He was a Director of the docks of the City of Miami from 64 through 72. He is presently working on the staff of the City Manager of Miami Beach included in the planning and development of a 400 slip full service marina. Another one of our officers, Mr. A. J. Crowder is an engineer with some twenty years exper- ience in South Florida. He has much marine related experience. He has been responsible for the planning and design of a community of 100,000 acres in the Grand Bahamas. He was in charge of site development and design of the seawalls. new docks and marinas in the Bahamas, the Virgin Islands, Marco Island as well as being in charge of the new restoration of the seawall on Cape Florida on Rey Biscayne. Another member of our company is Murray Dubbin, an attorney. Mr. Dubbin is well known as a former state legislative member from 63 to 74. He received the award as outstanding legislative member in 1971 as well asbeing nominated five differentimes fasl this st ndingy is ouu, well - endowed for or Miamarina is vary simple. facility and for that reason we have offered what we feel is an outstanding rate structure to the City of Miami. We guarantee to the City of Miami $150,000 per year or 3110 of the gross income for this facility. We have fulfilled all of the obligations as far as proposals that the City has asked for and some of these have to do with a culvert, a breakwater and I would like to call on Mr. Windy Crowder at this time to coves the technical details of these facilities. . Windy. Mr. A. J. Crowder: Thank you, Mr. Walker. the technical facilities at Miamar- ina certainly don't approach those and the problems that we'll encounter at wereDinner Key, lly our proposal would be to follow setforth in�along the guidelines the maintenances and rehabilitation ofsany ofthe structures, the walkways, the docks. We will investigate the problems that have we'll en- countered prior to this time in the motion of the will within also entee e the feasibil- ity eill make studies attempting to solve this problem. ity and prepare studies for the solid waste that has bean collecting in the JUN. 2 21878 JUN. 22le" oom • 1,RINA :clestone = inagement Co. v 1ARINA few World Marinas, Enc. ontheri of the Marinas upon the tikes when we have the north-northwest winds. the overall planning of this, of course, had already been done. There is no proposed major expansion of the facility other than the Maintenance, rehebili= Cation and servicing of those existing facilities as they would be required. Mr. Walker: Hr. Mayor, we rest on the Miamarina proposal. Mayor Ferre: I think the best thing to do, Hz. Grassie, is for us to hear all three presentations and then came back and ask questions of the individual representatives so we'll now move onto the second group. Mr. Grassie: Very good, sir, Dinner Key Marinas, Inc., then would be the... I'm sorry, Ecclestone Management would be the second proposal. Mr. Pobert Norris: Mr. Mayor, Council Members, I'm Bob Norris from Ecclestone Management Company. I represent Floyd Ecclestone vho is the owner and proposer in the Miamarina bid. Mz. Ecclestone regrets he could not be here today, he vas in the Bermuda Race and if you road the paper the Bermuda Race vas rather slow, it was a little late in getting in so I'll have to carry on for him. Let me tell you a little bit about Ecclestone Management Company and Floyd Eccle- stone, our experience. We have had experience in four fields relating to our bid, first construction. Mr. Ecclestone bas been in the construction business for 15 years in homes, office buildings, apartments and more importantly marinas. He has been in the development end of business, in the development end by the development of host Tree Village in Palm Beach and Old Port Cove. We have been involved in the management end of our business in Old Port Cove Homeowners Associations, the Old Port Cove Marina and two office structures in Palm Beach and apartment buildings. Mr. Ecclestone personally has been involved in sailing and designing sailing craft for a period of 25 years. Fifth on our schedule of experience is our staff. Mr. Ecclestone retains a staff that is daily involved in construction of multi -family housing/office buildings. We are daily involved in marketing of these and in financing and the general management. As to the Miamarina, you've read our proposal and our bid, we feel like it is a basic bid, We address secondly the problems of the Miamarina that have been brought to our attention and we feel primarily as I'm sure the others do the major problem is the wave barrier problem. We have spoken with Post Buckley Schuh and Jernigan and I have with me today one of their associates who can discuss this if you need. Our feeling about the wave barrier, ve definitely feel like it will be needed, we feel like there will be other corrections needed. We do not feel that there can be any major additions made to the Miamarina due to the size of the leased improvement. We would like to discuss at future meetings the possi- bility of alterations of same of the facilities that are there. As fax as problems are concerned we are rprepared ed and coz hink we are tfinasciallyacaplble of handling the necessary imprepaor at Miamarina. We mill address one major factor in the Miemarina. It is a factor called promotion. We in West Palm Beach, this gentleman, we maintain one full time gentleman doing nothing but correlating our marketing efforts in the real- gentlemanestate field. This would satisfactory program ofpromotingthe eMinpromoting Miamarina. We feel like seshould gbe promoting four things: First, service; secondly maybe not in importance, maybe it should be first in importance, but ve feel that we should be able to adequ_ e- ly and justifiably promote the location of Miemarina as one of the finest trans- ient type marinas in the south. We would like to be able to promote a well - maintained marina which we think ve will be able to present eithand d wn • would dnlike ei- to be able to promote the marina to the boating P ne ome think investi- gation we have beard comment that it is mot the place to stay. it to Mr. Ecclestone's meeage- n▪ tld beo marinas, experience n ly in the manag® of other similar typebusine businesses but his invo ve- t ent in the marina srthat eCAA g a b d. al and speak the boaterers' lanquage. We thank you for the oportunityofmaking Mayor Terre: Thank you vary much. The next group, Mr. Grassie? Mr. Grassie: The third proposal then, Mr. Mayor, would be from New World Marinas, Inc. Mr. Tom Post: Mr. Mayor, Commissioners, my name is Tom Post. I'■ an attorney Miami • in and I represent New World Marinas, Inc. I mould like very quickly to introduce to you the principals in flew World Marinas, Inc. first of all, the president is Gladys Dubbin. Would you please stand, Mrs. Dubbin. Mrs. Dubbin is a businesswoman with vast experience in the nht has rine fiee ld. She he haamber s been involved in a number of marina operations, 2 JUN. 22 1978 bt shipping operations as the tebume that you find in out proposal indicates. - ghe has been directly involved in the a+anegement of various ships under the tntetetate Commerce Commission's certification from Marina tom ine to Louisiana, uisia a,8sshe hat Mesa involved with present the Bimini Marina, Duck Key Sea Lift s Marina. At the present time she is an officer in a corporation which provides Military ea Lift too - ten ships (provides allct theacargo and servicesrier for the ed for thesdown range missile contract. The track- siand which p That is under a military •e bases ofothehhco the ionCariseDo• Dubbin who is a sister-in-law Mrs. secbenary e also corporation Doxpthy, bobbin. She also has tremendous experience in marinas and shipping and tic - in advertising and development. My experience in this area is in addi- tionorly amount of maritime work I'm also an adjunct professor at the University rsto ta certain feel that with the Environ- mental Litigation experience and the Admiralty mill be required in connection permitting any means n Admiral able to work for the necessary a finally but not least by With the operation of u dmystand up for just a second? I think everybody is familiarai. withmidmi would youthat it i today, Admiral Stephens. He was the Director for the Port of Miami for port to the fine outstanding portthrilled seven years, ashe eabugerlt that ray because he feeld the largest passenger port in the voted States and P=��solute y to have Admiral Stephens with us p_ that along with our experience the experienced f p&ni Admiral Stephens absolutely of Miami people of Miami. Nonw't out want toe go a into onnee for the Cafter discussing the members. I want to pino one tthing that othe eothetwo people didn't point out and it is very important who are at the marina. We propose no rate increase Whatsoever to the people ust heard. The other Proposals as yhetsoever from the zo or used at the marina. That is not like the other t P ourhbidoc includes any that theym 1 understand, both have indicated an increase in the dockage revenues lease to iincl individuals Ad of these will seek from ehassesseddasla result ofater. eanyd e at ndiidThirdlst Tax which may i We agree to pay whatever that tax may a be. working at we in- tendnt facilities. City employees who are cur important. MiaIDAV- tend to employ all fuel time there. We think that is excee&inglY i� inn should theywadesiretobto stay dif- ferent want to build Miamarina into a full service mantas. I think the two pro you heard just a couple of minutes ago are substantially bse t5 sally for nt from thatsin have indicated to you that they We want to a number of fnyett fend ours pe that they We do want m er of my tremtendous expansion of facilities. nd itt into a full ervice marina. things Dockc that marine to expand have now or build a second floor ld ze the view of that facility, so that you can better provide a new Office, increase the office that we better direct the traffic that's in se you can maximal can are the security for the merino and so that youelectric boxes whichcwant to add aulty the marina. We want to replace the existing and improperly installed as our slides in a secondonwillina show. � slides that I'm g goingnto ofr new sins for to w l show in wwhhere were going to ode that. We topresent ip- a minute will shoe Y -out facility to be consistent with install a fuel service in want add for pump sanitation devices. We wan ins a lull service re- quirements with thatrine pans outfacility which will make Mismare anda full its corjnnctiWe that larg Miamarina and enlargs id con - sports sh ngnt to enlarge and sightclean-seeing in fleet. Now Admiral Stephen tremen- dous and its sight -has been discussed has came, up with • sports fishingem undergoing dour idea with the wave dptiat is instead of building a breakwater and un dole wevi metal problems that are associated with that thethadmiral has all the that ve barrier that would hang so as to be just a ist proposed owned by the Counety a overbantog ock Island which will hang mare action i owned by in Couate uto Dock deepenough to stop any an adverse environmental affect and can be done such much little bit the water but sufficiently who said that . but without having request of the peoplewill expect they werebepgo and I build a caution b*tether that funding they t that they City toopa C build in wave barriernbarrier, we do not. We will Pu participate that, in a toll Thirdly, or continuing the Pasta that we're proposing. l are problems in barrier in ourselves provide the uric trol for that area. Thar recur- ae we want o eed t egdy the made don't mass to go in depth on that but we want to enhance security, I a Watson Island until same determinationd facilely sty. Mh will going to happen to Watson Island. Nov the Matson Islas ISMthe Kismarina personnel and as topresently what is going ao Sally taken care of by smelt and ve understand brim the City's desire to get out of the marina management we s, we•1 tit y the City Watson Island Ana and t those going decide affirmatively run busi- mess, malt �tdi�sposshased �►that we lti you happily conjunction with the hotels _ t to work in other to provide M to do with Watsonh tslanp.rtshfi� fleet and the sight-seeing in Miami and with the spy • ahuttie service so that when boats from the north come down to Florida they dill have facilities, restaurant facilities, hotel facilities available to them to use as an adjunct to our marina. We want to build Miamarine into a full service marina similar to Pier 66 and we feel that including the business community, the hotels, and you have there a letter that 1 have just presented to you from Skip Shepard. We have also contacted the Columbus Hotel and other hotels and they have all agreed and are all very enthusiastic about this program. In addition to this we want to provide a program to bring the boater from his boat into downtown Miami where he can do a little shopping s�we'rere gggog ing to giveto have a little information center and when the boat ties up him same information on where the restaurants are and where the hotels are and we're going to give him a little card so that he can get a discount at some of the shops in Miami, bring him downtown into these shops. Now I want to talk just for a the al the Dubbinsdrealut the in interest in thisic at andithat isotosmakend Mithe amarinaiintoa be- hindbeautiful facility for this community. To encourage this we're going to try to sponsor sporting events, races, regattas, coordinated voyages, we want to pro- vide and we will ask for scouting vessels, we will ask for scientific vessels, anyone that wants to came in along the outside wall we will give them free berth- ing in this area to bring these vessels down here, to help the scouts, to help the scientific people out. We want them to come in. We want to create a lively atmosphere for the downtown people to come in and view the marine and the facil- ities and we want to make the marina into something which we don't think it is being ocurrently ortunitLed to sufficiently thefor. complete addendashort a115theminutes differenthave not had as opportunity remodeling, yunan that pe ould willke to just takeuaesecond to go over it. that talk to you a you and I hopeuy have a second about our bid and the money that the City can derive. eseale upftoe d a minimum guarantee of $40,000 with a percentage as we go up the 20% of the income that comes in. But I want to point out that we are not again asking for any rate increase and secondly all these new facilities that we're talking about, a new dock office, a new ships store, a bait shop, to make this into a full service marina will be facilities which will be built on the port which the citizens of the City will have the benefit of and which will stay with the marina after we've gone or if you choose at some later date to bring in an- other group. Now our lease proposal is for twenty years, the other proposals are for thirty years. We think the City needs to look over what is happening in a more timely manner and we think a twenty year lease is a better lease. Finally in our proposal we have said we want to be inspected by the City monthly, whatever you desire by a member of the City Manager's Office to make sure that we are complying with what we are attempting to do there and what we are demon- strating to you aw thatitwe want to maakke and we thinke t marinaCity vislbe very proper y capable man ged. of bringing down its people Now if I can I just want to run through a couple of real quick slides, it will take just a couple of minutes. We are, of course, New World Marinas and this is really what we're talking about, Miamarina, and in the back very fortunately you have a beautiful picture of the Port of Miami which Admiral Stephens is certainly greatly responsible for. And you'll note that that bridge goes over to that port and that Admiral Stephens traveled that bridge thousands of times to that port and certainly knows about the marina and as I say we're very happy in having him as a part of our group because we think his experience in this particular area is something that is substantial and will help insure the via- bility of Miamarina as we wouldlike now toe wee it. owethYspicture b t thee'andrtheipic- tures that I'm going to show you_ want allow. Miamarina What you see therand e is,s a fendet rsystemwhichisscaveddin hatlfeandlright behind that fender system is an electric box. Now this situation exists through- out the marina and these fenders have been broken off and not replaced andrwwhhat at cularly the with bow comeei■ is whe in y knthe bows of these boats, ockk those electric boxes and dbbreak ahem off atatheir bottom and thoeyn 're very badly placed, in fact, they don't meet currant fire standards if you check with your own Fire people I believe and we want to dosomething uaout t replacing those and caking that a lot safer. This is an exempeof pilings that you have down there. We will replace these pilings and add new pilings for new boat slips. This is another example of broken pilings exist today. This is another example of what has happened to your electric box.i top. That's your electric box on the bottom and your fire protection �d here trth to Mow you'll see that the fender system that was designed to go behi nprotect this thing has been demolished alreadyandpunched and what's hbox aneedr is bow sprint of some boat has cane through there three tines and that is your facility now. This is unfortunately also the situation now - pollution throughout the mar�.p ese•pictures were taken this week, all of these. Another example Mayor Parrs: Counselor, your fifteen minutes are up. 7 JUN. 22 1978 ussion about arina Taxes MEE MEM MEE 1 ■ 54r. Port: All right, your honor, we do not hive a Dinner key and I only have hitt ishedailittledearly. yeThankcould youk.e Mr. Walkerbit is a nice fellow. but again you get an idea of the pollution throughout the marina. This is the competition, this is what's coming. This is the new marina at Miami Beach that is under construction at South Beach. This will be a four hundred and same slip Marina and will be in direct competition with Miamarina. This is not a very pretty picture but it is where the new Miami Beach Outboard Club will be and some two hundred and some slips being built by Mr. Turchin. Directly up the street from the Miamarin& now as you all are aware in front of the Omni will be another large marina. We point these out to you only to say that we think that the out soCity tis hat theyecanibetputnin propperaction order, soat tis thatttheygto can help benefitthe the marinas community so that the revenues at the marinas will not continue to sink any further. Thank you very much. Mayor Ferre: Alright, thank you very much. again, these are the three presentations, is Mr. Grassie: That is correct, those are the If we'll get the lights back on that right, Mr. Grassie? three for Miamarina, Mr. Mayor. Mayor Ferre: Do you think that we should at this point ask questions, because there are separate questions I would imagine? Mr. Grassie: Yes, and not all of the companies overlap so you may with to ask questions now. Maor ofythe Cammissionlhas. What isdthe estimated income of thn we'll e what othere CityiofsMithe amirest erre: start off in operating that facility at this time, approximately? Mr. Grassie: Net, after operating expenses? Mayor Ferre: Yes, sir. mr. Grassie: Virtually none, it's about a break even operation. Mayor Ferre: All right, now as I understand it Biscayne Recreation Development Company is offering a minimum of $150,000 or 31.5 % of the gross receipts, which- ever is greater, is that correct? Mr. Grassie: That is their presentation, yes, sir. Mayor Ferre: Now I notice that the other two which is Ecclestone offers $50,000 plus 25% and New World offers 540,000 or 10.5% of gross receipts up to 750 and then they have an upward scale beyond that. Now I don't quite understand, there is a disparity which is quite substantial between guaranteeing $150,000, $50,000 and $40,000. Do you want to explain that? other ttwwoo proposals simple &newer is taxes onttheone proproposal perty, itt''s eitherassume aa lease taxes, the hold interest or Ad Valorem. Mayor Terre: I see. Well, the answer is that one assumes taxes and the other two does not. Mr. Posmoen: One does not assume taxes. Mayor Terre: Does not assume, and the other two do. Let me ask you this, at the present time the City is not paying School Board and County taxes. Mr. Posmoen: That is correct. Mayor Terre: Now, the moment that it becomes a private facility I would assume that it will be paying taxes Mr. Possoen: That is not necessarily the case... Mayor Terre: Well, if Den Paul has anything to do with it it will and I'm sure we'll hoar from him later on on that point. Mr Posmoen• Moth Grave Key and Merrill Stevens have managed to achieve exemp- tions On a yearly basis becauseofthe marine operation. JUN. 22 1978 - Continued 1111111111111111111 *a8ot Merles 1 'ea, well then that is a legal Wetter and My statement hete does bet in any way preempt or speak to that, tlda is not I court of law. But if this were to be taken to court Ind if it were lost then what would be the esti= bated taxes? Well, you have to, you know that is an important question in com- parison because you have to compare apples to apples. Mt. Fosmoen: I know it is, Mr. Mayor, and I don't have a ready answer for you because at thie point we don't know what the basis of the assessment would be, whether it would be a leasehold interest on twenty years or thirty years, whether it would be a tax on the value of the property, Ad Valorem Tax, we're definitely Oct certain at this point. Mayor Ferre: All right. Mt. Posmoen: You're correct, it is difficult to compare them because we don't know what that answer is. t t isY150Fandet: he Wotheryonekiosw50 andyyoulknowayt ouhhas vettootakesthatrinto s count Mr. Plummer: Well, I think the fair question, Mr. Mayor, would be if the third party, the New World wanted to answer I'm assuming they are the ones who have taken into consideration and showed the tax paid,awhat they based nothavetheir assess- ment on, how much more would their lease pay Y if y pay taxes. Mayor Ferre: You can also reverse that, I'm sure that Mx. Walker.... Mr. Post: There are two differences between our bid and the others, the first is the tax issue, I'll answer that. But the second is we are talking providing new facilitiesa new dock office, a whole new shelter for a fuel facility, fuel containers cost and a ship's store as outlined in our proposal. That represents $150,000 capital there that we're talking about. Secondly, for the Ad Valorem Taxation question I'm afraid that I have to agree with Mr. Paul, I sat as Spec- ial Master for the Property Appraisal Adjustment Board which is the body, as you know cowr'sPd of the County Commissioners and the School Board members re- viewing the question of taxation. Our bid includes the fact that we feel that if the bid is awarded that a tax in all probability will be placed on those marinas. My personal feeling is that those people who are living on liveaboard slips in Dinner Key or Miamarina now may well be subject to a taxation as based on a condominium, splitting it up according to the slip spaces if Mr. Blake were to chose to put that tax out now because I would have a very difficult time ex- plaining as a tenant out there what the public purpose was for me living there as a resident of Miami and not paying any taxes and getting free schooling facil- ities, free police protection, free fire protection and not paying any taxes whatsoever. The City as long as it owns public property and keeps it for public purposes that's fine but when you've got a situation that we have now at the marinas where we've got hundreds of people waiting on the list to get into Dinner Key to live there permanently not paying taxes if I were one of those residents I'd have a very difficult time explaining to a court or anyone elsees on what theel public purpose was for me to live there not paying any that the taxes will probably be put on and we're prepared to pay. Mr. Plummer: Mr. Post, it is a very simple answer, sir, tell me what have you put into reserve of your proposal for taxes? Mr. Post: Approximately $100,000 and that's based upon the cost of the marina when the 1964 bond issue was 3.159. Mayor Terre: All right, does tccieatone want to answer that same question? Well, I know but I mean just giving them the right... and also Mr. Walker. Mr. Norris: The question being, what would we add to our bid.... Mayor Ferree No, that wasn't the question. ... Mr. Norris: Me had $30,000. Mayor Farrel All right, thank you, sir. Ms. Walker, do you want to handle that question? Mr. Walkers We've gone into a number of things here, the things that were men- tioned by the gentleman that ha is going to replace, a part of the agreement with tba City when you put a proposal in to lease the Miamarina facilities oyou've got to replace pilings, you've got to replace parts of the docks, yo JUN. 22 1978 sma Continued Emm mme • :ussion about fates • ■ be ptepated to replace the electricity. We have gone in to the fuel facility Ind we have been told by people who believe that you cannot put a fuel facility t situationcandai'd l�e is out. it speak We to thatve also studied the fait Mayor Ferre: A11 right, sir. Mr. Dubbin: Just very briefly, Mr. Mayor and members of the lo mm Tax on any y opinion at this time if an attempt was made to levy a ualic matins Miemarine leased to a private person for purposes of operating P in my judgement under the present law there would be no Ad Valorem Tex levied. There are cases at this time to substantiate it. There Q!e those hho ng but otilggt is and n the chhangedrthis cwould nbe my pinion and that the law is imy advice ctosmyfclientiand to the Commis- sion. Mayor Ferre: Murray, it looks like Mrs. Dubbin Day, I see the honorable judge back there and I see the Dubbin family is here in force today. Mr. Dubbin: I thank you. Well, the judge, as you know, is a long time resident of north Grove and Brickell Avenue and I think me is intertwedein occurences rences here and I do notice that Gladys Dubbin, my cles wife for this partner is also another uncle's wife and we are in comp ular.... Mayor Ferret That's very healthy and I think that is great. All right. On to the next question, I havethisquestion and IIn oticewe'll that your in reverse you'renow with Mr. Walker, maybe you than are presently the only one that proposed spec'fic rates. These are higher Inc. charged. Now I dyotmean reallyt eabe nn for uspectful to the to believe that World but i don't thinkgyou, for a twenty year franchise, tions of increasing rates period. You're asking _ I wean a twenty inclusive fear lease with or forty years, arenty youyorraretyou? I'm sure increases for fo mak- ing itdon'tplanned increases years? You would have increases? Oh anno, you have any in forty years? No? I'm sorry, y r. Mr. Walker: All I just wanted to say is that we put our rates in and I notice that in a number of other cases no one put rates in and our ratesqquithbor- modest, from 13 to 15, from 81 to 10 and it averages something in the hood of 18 or 20%. Kr. Plummer. How many years. Paul, are you willing to guarantee these rates at? Mr. Walker: We would say two years, we don't know what the cost of living is going to do to insurance and salaries and benefits. Theewithholdiwant to ng this keepis s a igoing usi upes and up, di ioln Security big9pro up andgoing business. In addition, we planpromotion on this facility as mentioned by the gentleman from Palm Beach. Mayor Ferre: All right, Ecclestone? Mr. Norris: Mr. Mayor, you're referring to the question of we didn't publish rates? Mayor Ferre: Yes, sir. Mr. Morris: Our rates would be slightly increased. I think in our discussionswith the review we did discuss rates and they would be. As to the questf bow long would we hold onto them I cannot say that we will hold on to them for a period in =eels of two years. Mayor Terre: All right, sir, thank you. Mr. Post: Me see no need to increase the rates at the present time and would see no need to increase them for at least two years subsequent. Mayor Terre: Two years. Mr. Post: The same as the oars. and that you Mayor Ferrel In other words no increase for two years and then bey don't know. % Wk. 2 2 1978 pssion Regatding iditional Revenues ■ iiiiiiiiiiiii11DDIIII■UIIII■ • 0. Gibion: Let me ask a question. We continue to lay to the people Who ,occupy this space, lose of them have been complaining either here or over there, you mean to tell s+e they're going to get all this business upgraded and he increased cost? Mr. Posts That's exactly what I mean to tell you because we don't think that Miamarine is now being operated anywhere close to its capacity, that the revenues that we will generate through some of the other services that we hope to provide will be increased revenues. No one has told you about the revenues from any fuel facilities, we will have fuel facilities and we will give youlincreased ase revenues from those. We will have a ships store and the City per- centage of everything sold out of that ship's store, any revenues that we would derive from any hotel accomodations, any brokerage at the marina that we would have the City would get its share of and that will increase those revenues. Mayor Terre: A11 right. Mr. Plummer: Let me ask a question, Mr. Mayor, something is completely off. Now Mr. Grassie or Mr. Foamoen, in this sheet which you passed 6utstohus, tsir, you say that when these people made their bid, I'm assuming sheet was developed, that there was no mention in the proposal of the rates yet I hear this man stand here and say that, in fact, there will be no increase in rates. Now where does this fall out of context? Mr. Fosu oen: This material before you was pulled directly from stl heir thisr the written proposal. If they wish to illuminate on that P po lic meeting I guess they can do that. Mr. Plummer: A11 right, well the point I'm trying to come to, if we go back to the second firm Ecclestone Management Company, now I want to tell you and I want some justification, a committee rated these companies and recommended to this Commission that these are the three to be heard. Based on your last comment in reference to Ecclestone, five out of the seven boxesa awnost even nmfmn illed in, no mention no nothing. The only thing that they P poe of $50,000 for thirty years. Now I want to know how a committee can intelligently make the decision that this company should be heard when the only thing they spoke to, and obviously in their proposal, was minimum of $50,000 for thirty years. There is nothing mentioned about the wave barrier, nothing about improve- ments, physical improvements, nothing about other improvements and in the col- umn where it is extensively in all of the other proposals none mentioned speci- fically. They do say that the City has to put in parking without meters and maintain parking areas. I'm at a loss, if this is all the information that was presented to the Committee. Mr. Tosmoen: What you have before you is what vas Presented in then id. prlot ovided lotd of those items were not asked for in the b, Commissioner, some l people provi them others didn't. All right? Some peopleprovided others did not. Mr. Plummer: I don't disagree with that. Mr. Fo n: When the Committee reviewed or met with each of the proposers, additional information was forthcoming from those proposers subsequent to this. Mr. Plummer: So in other words this is, in fact, an outdated paper. going toou are . receive report in a fewtes mminutes from that commit is in the ttee witthaa•n Yumber of com- receive a sepor tents. Mr. Plummer: Well let me just then use what you say there by making this obser- vation. Without knowing any of these other companies but seeing that some of es were obviously extensive in their answering of the bid proposals otter find it difficult to see how this company was chosen in lieu of i find extremely andled greater minimums and shorter years and were lieu of other companies more explicit in their presentations. Mayor Terre: I wonder if I might, if you'll excuse me for pre-eaptin9 Your answer ire, see if I can shed some light on this. I think the Commission, always jumping to everybody gets so up -tight about this because everybody i is • alwawhilys that have quick conclusions led on by certain friends every once incomments in the morning and I think we all get all excited about s lot of things that perhaps we don't have to get excited about. What we're trying etup o doif you will recall tba process was to span this up to tjUN. 2 2 1978 an WOMMendetiOns, we didn't want limitatie1e.i Thats no doesn't e me tthattic i- iation is going to accept anything. and that's e herechance that we'reail of ng to accept anything. We may not do anything you took when you came in and you spent your time and your money to make us proposals. It vas an open ended thing. We've had all kinds of and all vatit- ies of recommendations. I recognize the point that same people were a lot more thorough in their presentation than others, that is something that should be given serious consideration. The committee that was selected by the Manager, and I think wisely so, was supposed to evaluate all the proposals by talking to the individuals and then select the three the committee thought made most sense. They didn't come back and say this one is better than the other as I understand it. They said these are the three you should elistenatos aond the n : if you will recall at the last sessiottereywas somd we e queaid,stion ion a, to whether not or not we were going to decide anythingdecdayoan, let's move along et' seen again panic en this and make any hasty me what happens, what is presented, what is the opinion ofteaCCoe thesiont asnd at that point we can decide whether or not we're going to p in crossing this river or whether we're just going to go back to the other side of the shore and stay where we were." Nov that's where we're at right now and I agree, J. L., with your comments on the other hand unless we had approached it in thisbvery pnandyAdmirallStephe shave andgotten Paul Walker'sety of ideas. I want and ?tr. Ecclestone's. Mrs. Dan'sintelligent input These are intelligent imaginative peoweeh dand snidtto staff go andMiami castnd inistonedon't mean this in any derogatory way limited set the specifications of what we want we would have had a very very o le ofo the of circumstances and that would not permit the imagination of people likes of Paul Walker and Mrs. Dubbin and Admiral Stephens and Mr. Ecclestone to came here and let their imaginations flare a little bit. Nov we�elgetting hope - for free the usage of your ability and your mind, samewherelaalong the audience fully we'll choose one of you. But Icaution aand war opal to what this nce com- and the public not to come to any precipitous mission is or is not going to do. And we're right smack in the middle of this process. As a matter of fact, I would guesstimate that we're not eveand even half way there. Let's move on with the questions. I've got one more quot io'll go then we can hear from the committee withtheir recommendt the ation anditte d lease. Can- n to the next speaker. I've got a question ies and gentlemen of the three groups, I'm bothered about tethirttyy. yesar leases eases. I'm bothered because you're not really putting up any money that has already been spent. It is amlitt libit in ffeerent when you're going to have to go out and spend your that is a different ball game. Here the public has already spent its money, it is public funds that have been expended, it's already there. I have dif- ferent feeling about that. All uwe're reallytalking ik.thng about iscan you can run a it better than we can. I think yo marine facility, a marine facility is not al Fire Dept is aaar�Y type oorr afpoliihengwhrt- ment or an essential service of the City. ve render recreational type facilities. All we really want is for it to be properly managed, clean, kept up to date and where you make a good return and you make a profit and you give a better service to the people of the communit Therefore, I am bothered about thirty year leases. My question then is this, and we can start with you, Mr. Walker: Would you consider less than a thirty year lease? Mr. Walker: We would consider less than a thirty year lease, however, in the proposals put out for bid there was a statement that the th figuredocksmustif be eplaced by the year 2000. So when you have a 22 year leeway to replace the docks in the year 2000 we ought to be able to .stand our lease be- yond that. , I'll Lease a Lesser Term Of a out... I'm not like Claude P•PPer • I'm Mayor Verret Let's see, let me figure trying to figure out whether I'll be Mayor in that year and 1.don't intend to be in the year 2000. So I think that's something that we should let some fut- ure Commission worry about. All right, can ve get the answer from the next group? Mr. Post& Me would certainly consider a Lease for a lesser period of time al- though our late was tweets ?ears with an option to renew but we would certain- ly consider a lease for a lesser time. mayor Parrs: A11 right, acclsstone? Ms. Morris: Yes, with an option. 7 . SIN 22 1g7a rnssion tegardit ,Crease Monitoring II li would pay for ?4iamarina !improvements approves rates cussion Regarding Fuel Service :t was the Dollar Return from Each of the Proposals for Miamarina playor ferret Okay, let's see what other questions ve have from the ces BaiOn. Mrs. Gordon: Mr. Fosmoen, what criteria would be set up for monitoring perform= ance, maintenance and so forth for the lessee? Mr. Fosmoen: We have, in other leases that have recently been negotiated, the right to enter the property, the lease contains provisions that if ve find : maintenance problems the lessee has to correct rthoseimmediately bor helsis i n- n default of the lease. 6o you know we can be pretty hard-nosed ance of the property. Mrs. Gordon: What other controls do we have on the rate structures? Commissioner, the City Manager cases I believe it is the City Cofnt Mr. Fosmoen: In other leases that we have, must approve any rate increases and in some mission who approves rate increases. Mayor Ferre: Any other questions? Mr. Plummer: One of the companies, I think it was the last one, New World, you spoke of extensive improvements to the facilities and I think you spoke in the neighborhood of about $200,000? A11 right, $150,000. How would you propose that that money be derived? You would put out the money at no expense to the City, not deduct it from the rent? To the other companies ve wouldbesthe same question. Do you plan, Biscayne Recreation any and what amount and how would you pay for them and would it be out of your pocket or amortized back against the rent? Mr. Walker: It would be out of our pocket. Mr. Plummer: And approximately how much do you propose in improvements? Mr. Walker: The cost of it vas $178,000 in round numbers and the wave barrier was approximately in the $40,000 range. Mr. Plummer: Ecclestone? Mr. Norris: We've had a figure of around $100,000 and we plan to pay it our- selves. Mr. Plummer: Mr. Fosmoen, there have been two opposing views as fax as fuel service is concerned, something very critical to the boats of that area. One person said that it cannot be and the other one says they definitely propose it. Has the administration established a position on that that it is feasible or it is not? Mr. Grimm: Commissioner, if I may I'll answer that question by saying that when we built Miamarina it vas the policy of this Commission to not allow fuel- ing facilities as part of Miamarina and at that time to place the fueling facil- ity to serve that marina at Watson Island which we did. Mr. Plummer: But in other words other than the policy of this Commission is there any other prohibition that you know of? Mx. Grimm: Well, there could be but to answer your question whether I person- ally know if it, no. We had a fueling facility when Pier 5 was there. Mr. Plummer: Okay. Mr. Fosmoen: perhaps an expansion, Commissioner, there is a fueling facility proposed at the Plaza Venetia Marina. this, just... Based on, and lst me use just one ef. Plummer: Let w r ask you can't use, yes, you can of them, I don't care which one. Well, of course, your rates, use anyone you want with exception of Ecttes ins who o, do note mention oon� it let me askohad you proposed or the committee or 31�t f $150,000 and we know that's in hand if we vent with this company their offtes? stion is, what would be the maximum gross based upon gross. My r►x to establish a dollar figure. We know what the mini- mum oilier words I'mnce vabin9 figure that the City could derive? soon is, what conceivably could be the mazi� Mr. Fosatoen: We did not look at that because there are tmprovaW is proposed in all, both oases. It would be vary difficult to get a handle on the gross /0 , U1N. 2 2 1978 t would be the daximum Rate of :return to the -ity from all Phree Proposers? ina Proposal Review Committee Kr. E.P. Iaconis, 2hairman ■ i'!o' & brokerage business, for example, or a gross from a bait and tackle shop. if you want us to just take the number of 'lips 100 elips and multiply out the rate per day and see what the City's gross is that's easy assuming Para y. Mr. Plummer: Based upon the question which i asked to you off aofBWer hewraeecoord, what was the approximate assessed value of that property your imately $3,000,000. I think in private e businf ess r ta faireal etur rn on a anballpark is 10%. Ten per cent would equate to i ures at $300,000 per year return. Now, that's where I'm trying tog comethis from is to imum der one or alldethreeine if youtcanuld be the det determine from all�ynthree. proposal Mr. Fosmoen: I simply don't have the number for you. Mr. Plummer: Ok. I'd like for you at your convenience to develop that figure because I think that would have • big bearing on the Commission's decision as to whether or not it is financially feasible for us to get out of the business and to help this General Fund or not to. Mayor Ferre: A11 right, further questions at this time? If not, we'll get the report from the committee. Mr. Grassie: Its chairman, Mr. Mayor, would initiate that report to you. Mayor Ferre: Just st limit n mitetinto taringhe for er s now on. and then we'll get on to the other, hope Mr. Ike Iaconis: Thank you, Mr. Mayor. My name is Ike Iaconis and I was the Chairman of the Proposal Review Committee. I'd like at this time to recognize the two other gentlemen who were a part of this committee, Mr. Dickry Cu gnstlnd Mr. Pete sawyer. I'd like them to stand, please. Thank you e- men. Mr. Plummer: May I ask both gentlemen, what businlsse iare youn the uthin, sir? Pt _ trustine equipment. A11 right. And your association, yo but you are a tenant here. r of Mr. Iaconis: That's correct, interestte andilizen, I am have a CPAaprractice in Miami, Pub, Cit HealthadTrustCounty. as j City and County. i am also an engineer, I think we mentioned that once before. Mr. Plummer: Well, but what I was trying to establish was as to your water orientation it is as a tenant. Mr. Iaconis: Oh, my water orientation is I'm a tenant at Dinner Key Marina and I represented the Dinner Key Marina Tenants' Association in the rate in- crease discussion that was held last year and assisted the City in the formu- lation of Chapter 50. Mayor Ferre: Did you say great? Mr. Iaconis: The rate increase. Mayor Terre: Oh, rate, I thought you said great. I said that was the mouse that roared. Mr. Iaconis: R-a-t-e, air. The group that was assembled was not webby thy e City Manager to rate nor to pick any partic ular proposal. The requi the request a the and Manager's Office theccrias to teria ass wetdeveelloped what we would as an advisory group in g some way developed proposals which we felt beo ldibe from the fi point of viewto providing furtherst because e use there were several would a of significance fax you proposals. The proposals that we recommended essentially weeks' session, you to the have listened to the Miamariaa, the groupy has accepted the proposals top if I can use the pun. libat has happened is this, we at face value. There were no investigations on a private nature, orawholYver listened to the drattsals as they empted to makere someobjeted ctiveythe principalsev evaluations after we asked were involveduesand attempted in that what we started with in some of the questions. Mr. Plummer is correctareas and I'll go into what some of the proposals was no information in curtains. A land 1.11 analysis was not of the questions were and same of the respon were performed in that our purview was to look at exactly what the proposers /1 ()JN, 22 1978 eea ■ t to make some judgement from W whet tAbenting to ua and accept that and ettemp data which judgement will hot B with they proposed. For Dinner Key Marine we do have articular case there was Nome ofg a financial theafinancialadata and att in VW. Grassie's suggestion I you in farms it difficulty in getting Me had difficulty in getting won't go any further into the details of why there. There were several intangibles.... Mr. Plummer: Whoa, you don't just leave me hanging like that. Mr. Iaconis: I'd like to finish my presentation, if you have any questions, Sir, I would be glad to answer them. Mr. Plummer: Well rest assured you will be brought back on the subject. Finish your presentation. There were several intangibles that mode any discussion and any difficult. It was easier for Miamarina then as you will see Mr. Iaconis: wevnew very veryssin terms of being able to come to some conclusions the proposal. One of the items that the committee when we discuss Dinner Key both requested and con unanimously toibgto your attention is that there are proposerse whoequwithd unbnimfurlb h bring wish to bid for both Dinner Key and Miamarina. It iuthrequest be he if ut is one point that a decisionect has alsoe Commission that if there is a decision at some future Made witheDinner Key first and thatuproposer proposed on Ki y'+arina not be included for further consideration in the second oo le have or the Miamar:r.a proposal. The reason tfor o othf at is to alto th eosecond pproposer the opportunity not to be the step- laced on peoKeyple very J►lot of emphasis is p ina Dinnern terms of how it little Mis.�s Lecina is now• ros of there. istole emphasis an i,you've of the transientnature of the problems over Our operated, c y you've s atserather by sister approach app be brought to your next,e2 t`30°oru i400 yearsthat we have va second proposer ate tos0, first :marinr items in attention so thstep have child.twI would likes tonow adiscuss the Mii n one vfi don'te wish marina fandluse step-child. and minuses. You have heard a lot of the items' to go back A .i'n 1 talk about the same things you have heard about so I will down to some bottom line items. In terms of the pluses, Bis- att cayne go an P Y r grantee was cayempt to ate -t firsdot, gross. tee wa the best Rteof then freet, I'll is 1then5150t,000tora3l 5%eof ethero Os. consider t $1 the three proposals, gross whichY not just 5150,000 but it was a percentage of the in your understanding. However, taxes were noincleded ass 1part of their pro - guarantee says, well, if we havetshoull take that subtractto ac- count, outso their gum were iinto ac- thnt and we don't know what that number is , Y would not tellae us how much the coti;.nt, whereas Ecclestone and New World did indicate that taxes were,, en our did tellnwith yo in cthisschne amberey this afternbut ins. our discus- sione ththey would not relate to us what the amount lions with them they Mayor, I'll hold if you want but yet in light of that which Mr• a is onen° of thecestions you recommended to the Manager that to me is critical�t s where I'm losing. be one of the firms heard. , Iaconis finish and then we'll' write Mayor Ferri: J. L., why don't you let Mr. down your questions. nt was Thank you, Mr. Mayor. The experience at Biscayne Development was Mr. andIodia:the culvert vas one of the areas that we considered of sign would do to clear up some of the stagnant water nt vest good y viz, as a the thatayou in terms the whatre provided by New World. Bowe that negative and geyou rah in picture had just came back from Germany at out in attntlemti who was the engineer what we were talking bout in terms the time ofd our presentations did not �y have since apparentlyere was no discussion their the n =matron concerning the barrier. terse of the presentation. Now that and you usve beard intimations solution discussed by Biscayne Recreation at the time of our p the others in a minute. What welooked was what theselitems at in t el ublo ic interest, what about the wave barriernecessary, were n items area, pub that would be provided if s a roblem area, any renovation for gym, what pelt be the significant ple were would slaking the what return city, wld be mate and a iencelof�the peOP cial the • presen tt the dw,bat vas the operated marina and what ware the final quali- fications. Edon that ibasis, and the boiled it down to pros And dto cons for one s that were not presented before you did not cWe uP question far one nda group trying to answer Mr. Plusuer s over standard that erase temp �t in of its pros was that they included overall. Ecclestone 1lanag / 7 Do:. 2 2 1978 errs 1 t 0O6,000 in their presentation to us; for the wave barrier approach. thie was he hided, as they would Ray, they would pay for this in an attempt to clear Up this eituetion. The marina experience vas proven in terms of a significant *&tine up in West Palm Beach and they also indicated in this presentation that they Would include an additional $100,000 for improvements. The negatives con- cerning teclestone, boiling it down, vas that they placed conditions on their agreement. They discussed the fact that parking vas requWTod withoutmeters and that the City must do something about it and they had no suggestion What is to be done. They wanted the City to maintain the parking area, they did not wish that to be part of their responsibility and that the City was to provide certain insurance which they felt also was not their responsibility. What takes care of the netted dam items in Ecclestone. In New World they had the smallest amount to the City on a guaranteed basis but they included taxes and they told us that they included $100,000 in taxes. As we heard from Eccle- etone they only included $30,000 and they mentioned that to you just a few mom- ents ago. The pros in terms of the New World area was that they suggested at lest was undefined that re the short Thismwass ahvery acceptable answereas fax as thed be committee increase ver committee was concerned. They discussed a beautification program, full service marina and that one of the major items discussed was the increasing of the ateenuibertofs of Blips and I'm surprised that Mr. Post didn't bring that to your afternoon but the committee felt that that was of significance, the use of some of the vacant areas around the marina for smaller boats in that facility. Did you? Ok, then I didn't hear it and I apologize, Mr. Post. I didn't hear Mr. ost it ted u t feltpthatsay that but the excellentttee wished sugg stion.toTheyediscussednetheroitoems suwe such as a tram to downtown and the getting of discounts in the various City establish- ments which we also thought were excellent. The barrier from the bridge and the use of the Admiral as a consultant in terms hrecommendations.sndsunderstanding The theof PortAuthority were also considered very very g negat- ive factors, the basic negative factor was that there was no experience presented at the operational level. These are people who wish to do same interesting things for the marina but they do not have anyone that they would have had as their marinas manager whereas the other two groups had mentioned people with marina experience who would literally operate day to day the marina. The Bis- cayne Recreation suggested a thirty year lease, they did provide rates, Eccle- stone has thirty years, they did not provide rates but in the session with the committee said they would possibly be the same rates as they would charge at Dinner Key. New World Marinas said no increase and as you hgeardis itnhis seaftfternoon they would attempt to hold that to a two year bay. Nov tion that we have, we have attempted to make this totally objective and at the request of my colleagues we were asked not to sake any editorial comments con- cerning this but merely present the facts for your review so with that I'm open for question. Mayor Ferre: Mr. Plummer. Mr. Plummer: ... (NEARLY INAUDIBLE, HOT USING MICROPHONE) made a comment which said that you were unable to secure financial records. I'm at a total loss to understand . you were unable to get financial data... the reason for it and two ... didn't have it how can you make....? Mr. Iaconis: The decision that we were asked to make was not whether or not we were_either qualified or were necessary to came up with a financial analysis, we weren't asked for it. We were asked to provide hopefully common sense and some basic business judgement to see which proposals were better than the others. We were not asked to provide that, sir. In terms of the information l can say to you that one proposer who vas not recommended in Miamarina put tspecifiuse cally in his proposal that it vas impossible for him to give a qu araneof the difficulty with which he found in trying to get information concerning the current revenue and expense for Miamar.ina. t second proposer andalatteeeasme this week was desperately interested in trying for that information. I contacted Mr. Massie and told him of tame of the dif- ficulty, ve did get information as late as this morning concernin° Dinner Key but re did not get information concerning Miamarina and I would defer that to Mr. Grassie, please. Mr. Grassie: And also you should mention, Ike, that you got in touch with me on this yesterday. Mr. Iaconis: Well, the reason that we got in torch with Mr. Gra,sie Yit tdey was four weeks ago I requested information from the City. Last data vas supposed to be presented we were told that there was more time, there /3 tNN 22 1978 lion. When 3 asked Viatindefstanding and that they iiould get ua the �orII1atiorities and at Via td get the inforb8tion yesterday they laid they bad other P that point I went to Mr. Grassie and I told the Director of inane i etsI told wouldtell IMr. shoulied and talso present it before the City of Gas told sie, that i should go right ahead and I've done it. At the toque st he thought it was an unwise idea and i agreed with him at the time. Mr. Plummer: (INAUDIBLE) the specs= Mr. Iaconis: I asked for data concerning revenue and expense areas, d was concerning the fiscal year and the specifically of Dinner Key. We asked for that informa- fit reference that I initially requests to go back to the caionenn t year activitiesisthat ape would be able then lion on the basis ewe weree had that we!Impossible to go Miamarina area. When unable to ge�e=efethethntiitwas !� information with which i had very personal involvement in last year any further. IBLE) . I'm not going to pursue it in the manner that I vas previous yyou what I think you were denied the I access pto. 1! you take, , know let me tell in to pick on anyone because I to. If you take, and please, I u nottrying excuse me because the other have to pick on Biscayne Recreation, Paul p assured i will come after put it in their asides stsassi► d - swr l cores after themle later. use fit to t gross figures lliasedina a grossBut if it take they criprotical I think to know what osOk, now on a 3t.5i is o0is very close to it, very close presently about 100t full or very the point... Mr. Iaconis: Mx. Plummer, let me bring one point to your attention, please. p with a minimum number thnor rwas consider which The committee askedkede to r not askedallto proposalse butmerely Ica and cm swei were ones Cos reject old listen Po We were not asked tosick the terms re askedskewe Chmonesiwn ehbetd th to. requested dbinntere other exactly h owes prey btedetr tusn wiotheut anyt�hoysi �� we read and towhat efu ly, oncened g n ourtcom any on what fur - than our, hopefully, again common sense and judgement saw on paper and what the presentations were. We were otffikedttoo answer ur- tt r weren't It to to de u then into any investigation. Therefore, I find it very r we didn't do acmething buts ewea rdo.t f question here as to why question I apologize ing tt find net an Ike implying that you did jtdo Lurk the orison and it was found difficult to do. That's all I asked to do that. We it on our own on the basis of try apples to apples comparison Mr. Plummer: Mr. Iaconis, I did not interrupt you, sir, and I'll ask for really can say• the same courtesy. Mr. Iaconis: I beg your pardon, I apologize, Mr. Plummer. in to develop, had you been Mr. Plummer: The train of thought that I was trying even able if you use the n able to secure fine tofinancial secure ds it pig t recordsandhad thatse c put in their proposal we presently have, applyingimight nlyeco panythat saw fit to P draw 59e r p opt us ng 31. have, aw'r theus only dat maximum would only it off using have.5a of what we're acing today The income at this point rounding bid of $150,000. that theya minimum t' e a the is nearest figure theiris $r00 and That's so but whatreallyytyou're Bis- cayneeilS ge, and rates proportionately u, is that yourf acommittee telling 1e: and Please ssaybe I'm misunderstanding depth at ail sad i is at best was a cursory look and did not go into for takingyuP Y°ur fie' the case, sir, then I apologize to yo about was performed at Dinner Key P. Iaconis: The depth that you're talking tewas pe. I'm only indicating and I'd be delighted to discuss that but it is p revealed data was difficult and if it wasn't for cry xequeat of Mr. Grasthat the yesterday we wouldn't have had that. In other words me a were et2pe prevented from getting t ngetheydata, Mr. Plummer, and we weren't asked from wereetgoan the and you'll hear more in Dinner Key. Ma going to do it any way Mr. Plummets Well, thank you. and to the Further questions? If not, thank you, Mr. Iaconis put in on Mayor Terre: committee for the dedication and hard work that you go on to behalf t yourrow finally we'll bear from staff and then we behalf of the City. Vow the Coconut Grove p 2 2 toe s to. tyor Requesting City Manager to Rank Proposals #1-#2-#3 i Mtn ftasfsie: During all Of the cotoittee'e deliberations, Mr. Mayor, we had at ttee but palOne mend edbetiMee tilt, ember vbo set as farfas 1 know at allttimes withethellwas coanai the butnt - pal tnf to make to you. We're satisfied i►e do not have a separate or dissenting reporte themsummarize their work With the work of the committee and were happy to havresent s% you• so that we do not have a different point of view to p Mr. Plummer: Well let me say this, Mr. Grasaie, you know what the committee is really saying on piamarina? That you controlled it. Now excuse me, if younforma feed - they dind't say that but if you hand feed a committee only whichtion you want them to have or what you give to them you do control the committee. Mayor Terre: Hey, let's put this in perspective, J. L. Mr. Plummer: Okay. Mr. Grassier May I make two comments, please? Mayor Ferrer In a moment. In the first place, Mr. Grassie, this Commission didnot mandate that any committee be established, d to spread thet s aburden et ly volun- ision tary thingt certain in my opinion you mmwisely making into certain parts of the community. Now, the choices of who served on that cosm+ittee, the three members vas completely yours. I didn't knQw about didn't even tell me about it un- it until I read about it in the newsPaper' youctions to that, you're certainly til way after the fact. Fine, I have no otobbject come up ,Now there i l entitled to do that. Now you're asking thing bere. have o and then members of the Commission are ready and you make your two points and I just want to express this and this is the only this with all due respects afterwe theo othertthe Marina. I think, I say o canu go on to a way Dinner fey your responsibility because IQ ink to you, that in a you're really shirking is el, this is M2 and this is N3, and furthermore, we disagree with what you should have came back with is "We have looked at these and in my ct thist a thirty yearSee, in effect what you've done is lease and we disagree with that and we disagree with that and here is what we recommend we should do". committee and you've really kind of beat around the bushnalu- lit le tten a oom:oi come to any little bit and you say this and that but you don't really to you expect us to in an hour and fifteen staff minute's come nd touaseonclu- sion ande thenwthe time re Sion when we haven't spent nearly getting into this question of.. You know that the Commission in the past, te has gone d that, course, Father, I want you to hear this because the Commission in the past sitid But of the other againstc thea Manager's h recommendations andoI on certain things er has the responsi- bility e is discouraging to the Manager and I underat,andthi� wag hand that lets the burden on us but rI think and this is how management this is the best proposal got feels about it andthenyburden falls on us. I don't want - listen I've the Herald a hide itheeor at least once a week thicke those and it vial thitkgeevery day thicker and doesn't me wrbitites Inisadlu, it tths e heat and hicker dthe flack aandiI'mceper1e afyewilling a vo and i can stand up ctZ's a l's but to vote against you if I have to and l6tttoh�vbale thse a�ihat's all right u fic I would much prefer in all these thing recommendation on these proposals. Mr Gordon: May I ask a question for clarification, Mr. Mayor? be Grassier Would it serve your questions that have already been asked? k of same of the qu ■ How much would the Taxes on Miamarina Amount to? 1111 1111 mom Mom What would the Minimum Acceptable Lease be to the City and the Proposer s. Commissioner, if I tried to answer before I lose ores The Question is there Mrs can.you here see to You can answer this a one too if you have Mama to be some deviation in what the amount of Lazes would be, � ° com- a figure, Mr. Grassie, that weutilize ce being offered?or out f pare the variety of income pledges indicated to you since Within the uncertainties that Mr. Fo n indicts going to one Mr. cannot technique the County in our use we wouldldot guess white youssei$1 which is simply a reflection ti- I suggest that use i100,000 a very Nation of currant market value based on construction Dort Pita I would ckcalculation of depreciation since then. But as a working sug- gest $100,000. Mrs. Gordon: The second question that is also important for us inour naSysis, what would be the minimum acceptabletails to e it's a each one, is pp aa�it, term of lease, the nixie acceptable term to each of the applicants, them? % /S . 2 2 1975 rgarding Invest ter vs. Length of Lease • • egarding Written Staff Evaluation Trigaiwirago Maya Perr*s Ail right, well let's write that down and we'll aak the: each individually. All right, Mr. Grassie, go ahead and answer... Mt. Graasie: I would suggest to you that that would be entirely dependent Upon the requirements you 'make of them for investment. The leasdo you take not have e would require of you so that if they to invest the loos termthey , invest much money,,let's assume that You don't require more than a $100.000 investment, you very well could end up with a five year lease. Mrs. Gordon: We'll get to that then. Mayor Ferret (INAWIBLE) Mayor, we would be Mx. Graasie: Well, in response to the Mayors comment, Mr. ether question: very happy to give you written recommendations on this or any Mayor Ferret You always have in the past. Mr. Grapreer Yes, and wnto youdifficult which areworld. complex problemstrying whichfind allow wayou ofo performing these unc problemsyou wish to perform and also to give you as you to perform the function that much back up and as much assistance as you want to have. NO;rr�attoempting imes emcees, whir going thempth afind the balance better than at other times. That s what we to do. Now, we've gone through a citizens' you wsll haver comments not only pub- lic hearing process, I will anticipate that Yf from your committee but also probably from citizens. If afterall would of that is done and after you have had a chance to express you us a written evaluation we will be lddelighted tot do o that. at. tove re isscnk andpMbreng that. There no problem in doing them, Commissioner.been so long ago that you're going to have to repeat Mr. Plummer: No way. had two comments, Mayor Ferre: Are there any other comments? You said you what's your second comment? Mr. Grassie: Well, I wanted to respond to something that Commissioner Plummer Well, only two things on that: (1) You know with rsome re- spect t shownt for... members whoo opin- ion shown the members of thefcommittee atcaoaaitteewho have evemrybe wer ioneof theirriow Wed whenchene opeoplelike Ike on a committee you know ion of own and you put somebody that you're not going to have somebody who is going to agree with everything that you think ahead of time and they're not going to let themselveeshbbeVeled, zs of the committee. lvtie :ede atyou. But red that is at, of all that from presentations they recognize that, you know flea the further than that you know Ike learned about the financial information, I the learned that we had a problem at about 5:30 last night. I still don't know s that the problem was in any kind of detail, why we had it. !iy assumption embarrassment that nobody is really talking about is that the recordstheof good enough to present a good picture. Now if I had to guess that's lea: and nobody wants to say it but I'll say it. Mr. Iaconis: That's a pretty good guess. Mr. Grassie: Nov you know, but I don't think that the committee was led nor do I think that... ut I nee and I that one ooef the Grassie, we're going to take a brea upin a t certbinly would Mayor Terre: members of the committee has his ham that like to recognize him. sal Mr. William G. lawyer: My name is William G. Sawyer. 1 served on dy but would • Review Committee. I don't know if I can helpthe having a tough time assessing Like to stake the statement if you think you're probably much sure so a difficult time and getting this believe me we had j different assessing because there was such a variety of information, so sanY there were variations in background. What it came down to essentially so from the other members of the ee to essentially elms my point of visw,uoa Can answer for themselves but from my point of view it had to boil down to f these people who were .king these proposals, what were the qualifications o': lified to perform to the extent of *hat was their background, were they Qua e serf MIAMARINA IN DINNER KEY MARINA ;cayne Recreation Development Co. ■ m� m� ■ Litiditinq the return to the Cityi sriat also were their financial qualifice= hibfia. Nov► there were a lot Of other things that we asked about and that were iff the proposals. In my opinion a lot of these things certainly have to be epeeified but there are a lot that need to be negotiated when it comes down to o be iationsewithfstaff. Nov ascontract as thetoneuthathave hadebeen mentioned ed asin to negot- iations guaranteed and the 31, this as it turns out was one of the highest offers made to the City and we recommended, one of the major factors was that in our recommendation. Again, please understand we did not pick number one. It would be very difficult to do and we thought that the three major ones had enough information we thought you would hear because there certainly is room for choice. Thank you. Mr. Iaconis: Excuse me, sir, 1 would elike kegtohmake one comment, please, if I may. Mr. Plummer made a Mayor Ferre: We have two Commissioners who are about to break and don't think you want an accident to happen up here. Mr. Iaconis: Ok, all I wish to say is that I wished to save this to the end but I'll say it now in that no way did Mr. Grassie or his staff influence us in our deliberations. Mayor Ferre: I'm sure that's the case. Mr. Iaconis: There was excellent cooperation and communication between the members of the City staff and I'll address those later in our discussion but there was no control or no inflexibility. We had what we asked for,wwe whatdid what we asked for and Mr. Grassie did not attempt to tell us in anyway to do. Mayor Ferre: A11 right, Father. Rev. Gibson: Sir, you said something that quickened my imagination. You said t one that in our selectiondoes not getcthe ether, that ompany should teit is shifted around. that make sure around. Is that the same company what you said? Mr. Iaconis: Yes, sir. And I said that what should happen is that you should listen to Dinner Key's proposals and have the Dinner Key, assuming you pick one for Dinner Key, pick the Dinner Key operation first.... Mayor Ferre: Thank you very much, we're going to take a five minute break and we'll start with Dinner Key in a moment. Thereupon the City Commission took a brief recess and reconvened with all members of the Commission present. Recreation•willGmakeithewfirst presentation.o is the first presentation? ker. right, Bis- cayneMr. Paul Walkers Mr. Mayor, we have a booklet we'd like to present to the City Commission. Mayor !erre: Do you have any extras? Maybe same members of the public might want to at least look at? All right, now Mr. Clerk, these are half hour presentations, if you'd put the clock on. Mr. Walker: Biscayne Recreation Development Company was founded for the express purpose.... Mr. Plummer: Excuse me, Paul, I'm sorry to continuously interrupt you. Mr. Grassie, you presented us a comparative sheet on Miamarina, do we have one on Dinner Key? Mr. Tosmoens Me distributed it to you at your last meeting, if you wish we'll run additional copies. Mr. Plummer: Is it contained in this? Mt. Tosmoen: Mo, we'll get you a sheet in a few minutes, Coosaiasionez. Mr. Plummer: Go ahead while they're getting it, Paul. /7 • . 4. 2 2 11478 Mit Its ii&iktit ... I'm sorry, I'm having tore trouble with microphone*. Anyway, the COMpany hired the firm of Crowder Mahoney to make an examination of the hheilities al they presently exist and determine the cost of renovation, repair epbit + Bexpansion. At the same time the firm of Henderson and Rosenberg were uporo lard Tony pod You iruer Whopastedout thetbookletsiislandA I.A. architect up hefront. in chargergof designing the new facility that you see there, the Dock- Made is of srywa the company to determine the most Master's Office. This survey was ordered by t and its guests. Surveys were made by boat, air efficient use of the present and potential areas for the creation of a prime Marina toon-site eeinspethe ctioncttoo insure a comprehensive plan and design for a new facil- ity on-srte inept resent electrical power system is sty. Our engineers have determined that the P requirement of a full service in poor repair and totally inadequate for the load dre all practical as purposes is to facility. Consequently, we recommend and propose for propose itos install new replace the entire electrical system• install new lighting for the perimeter and for piers using a modern soft globe. we ci *edit thpall onepiers and two areneed the mostrepairs depreciatedd restotheration ones most in need ofurep the piersquite intensive and somewhat imaginative and repair.thOur on Pieri 1 will see areoi the repairs on 1 may have to wait if we're able to proceed on n einCers that we're planning but we do plan to rebuild Piernlis d heenlat t two year nters vale to replace replacement, 3, 4 and 5u. The P pilings require save repair an. rpeacempnt, hashalsoldesigned andMost pr� ides for in its proposal demo attention. Then company see in the Rosenberg plan below. In decorativecovers e walkways that you ordermpany opto to plant the dunith an of trees attractive and age adjacenttoethezthe walkway that proposes othen per. abundanceThe Dock Master's Office you'll see in the picture we plan for the neditoter. shover and toi- let facilities. In addition, this structure will go up room will other convent' 'ceoffice. Iniadditionll naeweat ere information and Chartcond floor will room to be the Dock Mast ._ be also be ec:.31.' is'►ed here for the tenant's use. Thlandsepingstructure wiilwill be addedgto to complim_nt t'.e nautical atmosphere and proper appearance. The Seminole area offers an excelAt lent site for the es endl Sauer toes present, ittd. ifdisgraie. end functionsentrpeculiar onn r the ey it leaves veryfirst is plana dsgrace. As an anrry We tc recanstruet or construct a new facility on this site. The floor will be the bait, tackle, beer saes and mat on p%netto o will to this facility in its first stage. I'd be a fast food restaurant. The Biscaynepart is remodeling additional 0 lisps to the exse I has The first flies tc point this out. Phase i has two parts. and updating tee present facilities, new electrical, new water facilities. Phase Phase I has the second part the construction of this newwill dock atond a total 5 t 0 new docks on the south side of the facility. tcalls for Phase II which is the build- ing fips• The next part of our proposaldocks off bank that is called Mole III. ing of a causeway where presently Dock 41 is situated with Stepan attention of the causeway and then 400 boat slips on the spoilslips again sole. Eventually we call for the aonstruction of of a total further B00 alias on this Mole III development and the building dements ands on this mo end finish Mr. we have der invewill speak d re thatenvirinmanmo r t we re Mr. Grinder will speak about in a moment. In addition, when we to have a mooring area of some 225 boats right Phase II and III which is the addition of the B00 additional slips let you under - in e9 about we are planningima an aerial u down the part on the exhibit Barked 'flooring treaded i a showing stand better how that facility will bestr° bars of the present island and how forthis follows l and a contour se t Z �11 oleaIas II. lont es anticipated that the pewtremendous potential for development as twos years to secure. Phase weaehave not has ahad very much encouragement tram which is another phase of Engineers and for that reason we're not envig to ronmental talk lkpab or the paM t about everything about this part. Ms have bad encouragement the newspaper not . The entire study actually in spite of whats aper else. because a number of things been based pas the v9?2 Dianconfigguration. It is no longer possibletgfol- loan he Master Plan Changed conceived. They bad talked aboutat slut fol- low the Master Pfau the may f was lot in the parking lot right o er herd Pier Sr ell end cut the udif the pia number of things that they they bad eliminated the avditori�a � the a, increasing Of the site of about. They ale'' did not invisi eh Shut have not but based on going off abort to tba islands Lehi wsSouth e majors art thif the 19s study 72'tartar plan. Ire know that the bayf sting at was sr major has t tangy of being as of the most intereatia9 and exciting Dinner *Jar tION. 2 2 19T8 1MMM 6 E0htbre of activity in the country not just the city and broadening it mould in- •E4uatic terms can do naught but enhance ite character. Our company p rO pole to eetablieh an advisory board composed of a member of the City 'tiff, a tepfeeentative of the Coconut Grove business community, a representative of the boaters and other interested people so that we would make sure that the environ- ment of the area would retain its nautical character. We see a huge expense here. The Biscayne Recreation Development projects up through Phase III will cost in excess of o,OOO,OOO.nher part, Pbse , will cost as h as $2,000,000 but we do have a plan herthatwill100% fundedbyprivatefunds and the returns to the City of tliami from the first day would be a guarantee, the minimum of which is $150,000 a year. This is different from some of the other plans that don't propose to pay anything to the City the first year or the second year. This plan is 1O0% marine oriented, no land -side development that has been planned et all, nothing except replacement of the new Seminole, the old Seminole building, up -dating the Dockmaster's Office and building a gazebo. A11 our proposals from the beginning have been 100% within the boundaries desig- nated as the area to be leased and leased by the City of Mid inaitsas leasepro- posal specifications which are included in this book. ••• year men- tioned call for the replacement of earth of the five piers within ab1t we have period. Our proposals are complete, I believe you'll find in the summary answered all of the questions, rates, what we're going to build, how we're going to build, financial structure, everything else and we have complied 100% with the dirctived al. We theerulessanywherethat thoalong theCity ed for in line. NowtI'dllikeotoscall on Mrs Windnot y Crowderto rnge to fill you in on some of the plans. Mr. A. J. Crowder; Thank you Paul. I would specifically like to address myself to the environmental or the ecological aspects of the plan, recognizing that any type of work going into a marine environment is going bjgctovfirstt of allniall nvolve e be quite a bit of the existing ecology. It violated or degraded or put down in any way, shape, form or fashion. I met with the Department of Natural Resources and the Department of Environmental Regulation and Management in Tallahassee and discussed in principle generally what our projected plans were on the proposals for DinnerrsKey t Marila.y ouvhave to recognize that nothing firm can be given by any final plan and an application submitted for approval, the best they can do is give you their opinions on what has happened in the past and subsequent to the meeting with DERM and DNR we also met with the United States Army Corps of Engin- ing the one that does he eers in Jacapprovaleinsofar asoffice the Corps of Engineers. They are the the jurisdiction over final app tha finalper- miffing process that will be required, we will need permits locally from the City end the County, we'll need permits from the Department of Environmental regulation and Management and also from the Corps of Engineers from the Jackson- ville Office. We do not feel that the proposal as submitted here will encounter any substantial resistance. We know that we have followed to date the general guidelines of the Acquatic Preserve Act of 1974, we know we have followed the rules and guidelines of the regulatory agencies, DER, DNR and of the local en- vironmental agencies. We've tried dtto follow ogullo the e of n as1Paul2 had dezentionedded bei- fore in the spirit and keeping the Master Plan this is a small copy and I don't know if you can discern it, but you'll notice that there are two shades of blue that run around the various rious, moles here. The darker blue closer in this way is recognized �tneheyncull, and I will read from it, "The Empoverished Marine Ecology". ant, our ecological consultant on the project is Dr. Howard Peas at the Univer- sity of Miami Marine Biology professor and he has stated that these impoverished areas in here is one that is of a lower order. This is not to say that it is r not a marine o habitat, that it is y not a turtlegreasa wine onment but in any given place doeis on a sn t order. also theafact that going to be an acquatic hebitate. In fact, you wicesfindly tan that it is are closer to being around will find that the fishes and the habitats probably than get the pilings, the docks, the areas where they haveplaces hiderather into the marine grasses other than breeding purpo we fdeeell to the plan use the that we have projected here stays in this lower impoverished words of the Master Plan. Based on our discussions �ioons wh me Dire lleeeeno problem with them as long as we follow their gut _ for no variances at a11, the Corps of Engineers a l`tttllebit etype oenthus- iastic in their statement in that they openly ai tn end an improvement ofthat they like to see. This is a project that is an aspen 0 of an existing facility which they welcome with open arms. It is not one of a brand new nature that goes out into an undevelopedaea h.tch Ri plyt opens the door to problems not only from the surroundingstrongly er that 'palms that can occur. ?ram the .marine environment we feel very' we have followed the guidelines, we wi11•not be degrading the eaters, the bay bottom, any portion of it in any way and, of course, the final answer cases from the permit. We have ukedaor no variances, we are going to ask for permits �9 (u . 2 2 197B Within the existing guidtlinee and perhaps. Tor. Dubbin fight go A little bit Sort unto the probability or the actual ramifications of the Acquatic Preserve Act. Mr. Murray Dubbin: Thank you, Windy, Mr. Mayor and members of the Commission. s been f practice law and to cneytriiuts cialize inn to this consortium Environmental Law and Adminisally trative facte wthat I'm an attorney. Law and that's a designated specialty under that lj}o�rsbcutabuildingapierspo�docks When you talk about building marinas, when you in building e piers ofr ockwhen you talk about development of any kind almost anywhere Flor- ida particularly in Biscayne Bay which is the subject of theBiscayne Bit, isay Apccq atic Preserve Act the first question you ask yourself is can you r there to have it done. And in all instances it has been my conclusion and my advice to the group that I represent of which I'm a part of that as a mattes of law the work that is proposed as part of the second phase and third phase is Work that is feasible and is permissible work. That means this: You who have been engaged somewhat in the building knnoveow thatathere ereeisaaalmost ot nothing you can do without getting a permit talk- ing when you're talking about the development of water areas you'rein Florida of ing about a multitude of agencies. 0f course, you have eyo and is delegated Environmental Resources Management which is a county agency with the power of the Department of Environmental al ReetheDationmon for or waoaten quality tntal concern from the State of Florida. Then you Regulation. Then you have the Department of Natural Resources, the Department of Natural Resources sitting as the trustees othe nternalnBiscay Fund is also the manager of the Biscayne Bay AcqicPreservewaynehen the Bay and you have the Corps of Engineers. Everything that is proposed is authority permissible by permitting agencies. in other words there is nothing proposed that is prohibited and the experience I've had with the knowledge that we have of the sub -surface and the land underlying the proposed lease land which is through our information sterile land, not necessarily capable of producingat anything, we're convinced that these permits are feasible and of lrw acticalhand and that we can deliver what we propose. There are other questions raised, there are specters that have been raised. The question has been raised, for example, and I'm not sure how it has been raised, I think it may have been just drifted around, that the submerged land was the subject of a grant from the State of Florida, the Department of the Trustees and that it contains a restric- tion and a reverter clause. There is such a deed and the deed does contain a restriction. The opinion of the City Attorney that he gave you in December of 1977 is that the lease through otherwise managemnt�b turn of I'm shroo property so long as it is for public use would not trigger tell you that I have examined the law and I have prepared a a memorand m of law and it is my conclusion that the proposed lease which you sponse will have absolutely no adverse impact on any reverter provision of any deed. I say it to you that this is my opinion odI'm isaying witcht pubclicly diandi- I've said it in writing. I've prepared a memo mprobably n be buted and I think it should be because there is a memo that's p before you that raises the horrible possibility of triggering a reverter if the land is leased or something like that. I categorically reject that. I would just as soon respond to questions if you have any or else hold further remarks until later if there aren't questions that require a response. Mayor Ferre: A11 right, thank you. Mr. Plummer: moray, just for your information when Tibor Rollo was here and be got through all of the washing machine that he bad to oigof through:o 52 ughahetie ndicated to this Commission that he bad to get the CM and app ies before he appeared here for the final approval. Mr. Dubbin: That means the system is being improved. Mr. Plummer: I guess it could be interpreted that way. Mayor !errs: That's what I like about Murray. be looks at everything on the positive side. Good for you, Murray. All right, Paul? Mr. Walker: Mr. mayor, that's all we have. Amy questions about the exhibit? Nayor !erre: Well, we'll bold back the questions like we did the last time until we've heard all three presentations. A11 right, I think it see beaauld be ad- visable if you would reverse that so that members of the public ale the it is that we've been looking at for a While and in the meantime Wo sec - and group step forward. Who is the second group, Tr. Manager? 2 o GUN. 2 2 to78 • ■ finer Key Dinner Key Marina, Inc. Nee GiatIie: The aeeond group, Mr. Mayor, it Dinner Thy Marina, Inc. Me. Plummet: Mr. Mayor, while they're getting up, it vasmmy, :Merttending with you that regardless that this Commission was going to conclude this matter et 6:00 O'Clock and continue at a different later time if necessary so that we could hve en hour for either dinner or relaxation before we start our 7:00 O'Clock meeting. is that still the intent? Mayor Ferre: That's correct, yes. It is ten minutes til six, I would hope ve would break up at 6100. Obviously that leans that we're not going to come to Any conclusions thatay with we will notrds evenothe come to proposals oncl conclusion ve next timeen wedie- d. It is my guess cuss this. So ... Mr. Plummer: Well, in all fairness, Mr. Mayor, we have two more companies with a calf hour each. Also scheduled is the Water Authority. Now if you add that to it you're then putting a minimum I would assume of an hour and a half. Now what is your intent? Mayor Ferre: I think ve should break up at 6:00 so that we can all have an hour to rest and then we'll start at 7:00 and we'll hear the Water Authority at 7:00. Is that acceptable to the members of the Commission? Mrs. Gordon: We have zoning starting at 7:00, Mr. Mayor. Mayor Ferre: Well, I think that Water Authority will only lent half a hour, I don't think it will be any more than that, do you? Mrs. Gordon: I would make a suggestion if it is agreeable with all of ou thathat we hear all related items to this Dinner Key and all matters per same subject and then we break even if ve have to reconvene a little bit later. Mayor Ferre: J. L.? Mr. Plummer: Maurice, I don't care I'll play by whatever rules are net, my fear is that if we hear all matters relating to this we're going to be here until 9:00 O'Clock before weoven the break. Thet re''s no nogquestion in odin ty mind that we're going to hear everything Mayor Ferre: Look, let's be practical, you know that this isn't going to be over by 6:00. So at 6:00 O'Clock we're going to cut off. Mr. Dixon, we'll hear you at 7:00 O'Clock for half an hour, we'll go into the Zoning Meeting at that time and that's it. If we have to hear more about this it will beyattoso ethent roddate, we're not going to came to a decision today anyway• This st vork that way unfortunately as Murray yell knows. A11 right. turn Mteredith,arouI think it is important that once we get going on this if you'd d so that the members of the public who want to follow it unless, is that what you're going to show up there? Mr. Spencer Meredith: No, actually, Mr. Mayor, vhat I'd like to do is that's the last part of the whole preit up we'll doabout tit. ake tha apologize now and and than what I'll do is I'll pv taking so such time in setting up. Mayor Terre: It's all right. Ok. Are we ready to go now? I. Meredith: Yes I am, thank you. Tor the record, I'■ Spencer Meredith. Presi- dent of Dinner Key Marina, Inc. and before I start I'd like to make an announce- ment to all of you. When we responded to the request for proposals put docksut b the City we looked at the entire Dinner Keaea inpaddd lion tooaiima r� sty which vere of paramount concern, the peopleiva variety of eC and the general public and when ve studied that we explored Possi- bilities and we thought of marinas that are successful in the general southeast Floridao. area particularlyn labia 11�� vPincluded that as 66 and we explored part offoour proposal be done Bova bare at airmen Key. le here to the City led in the time since then I have met with a number Of peOP in the community. I've lived bare in the Grove on and off since 1960 andve !vunne that tb spirit of the communityit consistently forI've almost the last mix year fobanre was not in favor of that type of arit (* N. 2 2 197E iNeF ■ • asap MIMMM MEM an intensive development, that the proposal that we had made which included a hotel and •hopping promenade and major expansion of the parking facilities in addition to a variety of other things was siaply too large in its impact on the coam+unity, that for many different reasons people were opposed to it. Now it has been a very agonizing period for us because we worked very hard on it and gave it a lot of thought and in some ways it is an exciting concept. On the other hand I personally do not want to be instrumental in trying to force some- thing down the throat of this community that it does not want. So I am making an official announcement to the Commission and to the public that we have with- drawn the optional Part B of our So whatroposal remainsnowch isithe doccks,hotel, moorings, the islands portionping and ythe parking. much more in keeping with the spirit and I think you'll all find this is very do that you've expressed to me and I jus feetall thaAbot't greene Allh.ng to do. With that let's talk about the docks, let's Now first of all, who are we? There is actually the Board of Directors of Dinner Key I guess ue localpeople. onbCarter a boat here ands ed atdo a time or anotherhere at Dinner hey as for I guess roughly twenty yearswell and knows lived on every single one of the piers and knows them very very many of the boat owners down here. For seven years he was President of Bertram Yachts which is the largest yacht brokerage comp [ ancillathe ry operations operate a wet storage marina repair services and many e in connection with that. He has a life long career in the marina business, he is now in the marina business. Homer Marlow is an attorney here in town, he has lived here for better than 25 years owning a boat for almost that entire period. He is the principal in two boat brokerage businesses oandhe is thedisgalsotso principal in a company which manufactures a very high quality the Rampone, a very successful boat. He is very much committed to the water. He is also in the marina business at this time. Rick Vell is a Vice -President with Drexel, Burnham, lambert in one of the ten largest investment bankingnhousesiis ny the United States. He has been my partner for the last eight years of marine related businesses. I think many of you know me as President of Grove Key Marinas which if you recall five years ago was quite a different facility than it is now and if you would like to think of what our attitude toward the public would be in the future I would suggest that you teak to ourGpresenty nt us-- s- tomers, talk to our employees, go over and see what's hapP at ina itself. We are pleased to stand on that record. I thin theuousiCitycy inons n its records and its annual audit of our operations that they give us over there are satisfied and we'll stand on that basis. Now with that a comment on a couple of other things. We have some other stock holders who are professional in a variety of other ways, some of whom are in the invest- ment business, some of them in other businesses but they're all very much com- mitted to the success of this project. They are basically the same group that helped to make Grove Key a success. In addition to that we have had since prior to the time the bid was submitted an ad hoc committee of local citizens who have consistently taken an active interest in the community and have given us input as to what various ideas might or might not be included, what would beof inter- nter est to the community. So we're basically organized in that way• ow in mind I'd like to go through some slides. (Slide Presentation) This is the Dinner Key Master Plan as you all recognize it. It was presented almost exactly six years ago, June of 72. We lived in a different world then. A lot of changes have taken placein the project in the thet ix now, years and thingssagnif- icantly in relation to doing any type a great deal different. The vertical bulk heads that are enclosedoaround uthepen- e islands are very very difficult if not iaposssi labs et permits frimpossible tourg opito n- ion. This type of configuration in our op inion get permits for. I base that on a rather lengthy conversation I had with Col. Wisdom who is presently... Mayor !erre: W . ilredith, would you speak closer to the microphone because you're not coming through too strong. Mr. Meredith: I'■ sorry, is that better? Mayor Ferret Yes. Mr. Meredith: I'a not particularly used to this. Prior to submitting the bid to the City we had conversations with Col. Wisdom Oho dask iisd beaifdhd of f then e Army Corps of Engineers and we presented this d be said it was not in his feasible in the light to toda tproblems an y's PaI d that while it is not I opinion so I mention that es a point to you. UUN. 2 2 1978 MEM i seam s think that there are some comments that I'd like to make about the Dinner Kay Matter Plan and what has endured from it. There have been any deviations from it and there will probably be several more before history is over but there are lobe things which have been made which 1 think are of paramount importance and t case, it looked at the efiCoconuthGroveaen the lbasis of one einter-related contiguous piece eofaland ter front ll and water so it forced people to look at it that way rather than on a piece -meal basis. Secondly it said because it is waterfront and it is the waterfront of Coconut Grove it should be oriented, it should be marine oriented and the third point that it made which is still valid today is that not everybody owns a boat and there should be some amenities added here which i. 8 uldeget the eogeneral pubis lic down to the waterfront and help them enjoy' toe besill ast valid. alidey were like to gon d I hope they through what well real yys havecontinue here at Dinner Key now. Let's look at some slides quickly. These are going to be a series of slides on what is actually out here in Dinner Key right now. Now in looking at these slides they may not be particularly exciting, I'll go through them very quickly but let's see what we're looking at. First of all we're looking at the end of a dock and there are some pilings there and you can see the barnacles coming up the side of it which is how high the water rises and you'll a pile cap which is the horizontal bar and you'll see some sort of con- crete I -beams above that and you see wood decking above it and that's basically the way all these five piers are constructed. You'll also see a lot of rust and a lot of cracks. That's due to the fact that seepage water has crept into the concrete over the passage of time, gotten to the re -bar inside, it has ex- panded and cracked and the rust is leaking out and, of course, it materially weakens the structure of the docks. These are examples of Pier 1. The little number tells you the slip number. That's a T-heed, another part of the T-head that's the other end of the dock out there. This is Pier 2. Again, you see e insidemunderneathof ethe dock,you downcan underneathtthe dock.shape Again, thishe pilings what ise in; on Pier 2. Mayor Ferre: Spence, excuse the interruption again but Delores just mentioned to have enough time to me, allDan, I opletthat want it speak,n the world I understand you o see how you want to speak, now we're let the pe p going to have to continue this hearing and the next time around hopefully we'll have all the presenatations behind us and then we'll open it up for the public sector so that members of the public will be able to speak on these different proposals. 5o I don't want to, you're all welcome to stay but I don't want you to be here under the false feeling that you're going to be able to speak today. We just don't have the time. We've got one hour left, I don't think we're go- ing to be able to accomplish it. I promiseyouthat wewill this and that we will have another public hearing. dlcisdonr. Excuse s I said before I don't think we're anywhere near making any me, go ahead. Mr. Meredith: Thank you, I'm going to try to go through this as quickly as possible. The point in watching this, as I say it may not be the most exciting thing in the world but we do want to establish one point and that is the pres- ent today existing condition of the piers. You just see a lot of rust and cracks. These are all Pier 2, this is what it looks down underneath those things. Those are utility lines, waterand electricad l, vtteleihtne. This stis Pier 3. You see basically the same problem. down underneath those docks taking pictures of the pilings and all of that sort of stuff but I think it was important that you all get a chance tosee abet really is there.hNow eaarsfirst old. three thepiers fourth andput fifth. pierabasically mer'e put and so they're roughly 30 ye in about ten years later, let's see what kind of shape they're in. Not as much rust but you can see the concrete has already started to crack. See, once you get this kind of condition the deterioration has already startein.nThis these all Pier 4. This is Pier 5. This is thla t pid er that pe as pututrn throwee. last two piers obviously are not in quiteto crack aslith this, and you do On the other hand the act that theotyhaveethiirtyeyears of life in them, I don't see rust, scans that they do. So you've got some very think that any of you here could say that they serious problems with some of these pilings bare. In fact, in same ways Pier 5 seems to be worse than Pier 4. Now, just to wrap nthat g tnup, renovation, repair the reason ns we've and done this is we wanted m to establisheyii�Poon the basis that it is not economic- ally replacement s, of came out valry n to do any alternative other than ally feasible, safe, practical or anything simply replace the five existing piers. We do that because we're looking at a long term capital improvement program rather than doing it on a piece -. %1N. 2 2 1g7A )3 MEM A 1 !fa IMIEE bsia. These are just bore 'hate on what the dock tenants have to cope with MOW, First of ell, this is a significant shot only because it shows that once the first three piers were built in 1948 at sort of a splaid out angle there really wasn't much choice but to do Piers 4 and 5 on the same basis and it left a hugeobasinototputnanther dock in but ite and four and tisen anfour awfulnd lotiof•room.s not This quite enough room to p is what happens with wood decking in the sun. This is a problem of clutter. 1 think everyone knows what the problems of the electrical are on the docks. i also know the status of the finger piers. These pictures were taken, most Of them were taken at the very very end of February or early March this year. You've got a very seriously deteriorated situatiio� Tthe hat's the ow theronlye the commerc- ial 1 Want to make.bThis is Seminole, siisis going Seminole's from that corner there. shrimp boats are tied up. This is the little Cu1 de sac in the corner where the bulkhead makes a job and this is what it looks like from the other angle. That is what is termed "Unsightly Mud Flat", Seminole, the other side of S Seminole, le, anothirer viewe w he e dinghy dock at Seminole, the gas docks, people fu the stuff that floats up. These are big storm sewers there which undoubtedly it would be very hard to do much about but they're there and it would be worth studying. This is what happens at low tide, this falls again into the category of an unsightly mud flat. You know one of the things that the City has always been in favor of is getting a walkway along the water and we think that this situation here should be corrected. It's not an absolutely ideal walkway as it stands right now. This is going up in front r ntiof Bayfrintg Peacoctck Pd khlark ook- ing at it from the end of the City's property south island. This is looking down on that area, it's looking down the Sail- ing Club. his is obviously Bayshore Drive, a very attractive drive. This building we all know, a local work of art, a beautiful building. It is a beautiful harbor. This is what we have, Dinner Key. Now there are some off- shore islands. This is standing to the north island, this is the one directly in ront k, this is oking back at on thef island fitself, your can see some olike Mangrovesstartingedy Park. This s Kennedy arting there. You may notice the clarity of the water in here. This is looking out on the center islands. It is a pretty island, a nice view, a very nice place to sit and relax. Unfortunately, what is happening on the north side of it is the storm rinds in the wit.ter time are gradually deteriorating the island, taking it right back to sea and that's a problem that should be ad place the. hThis isrthe center island group. This is what is currently ataking gain goplac ai from the rddle islands. These are all contemporary pictures, of the harbor there. This is the end of the island. This is that little, we call the Channel Island between the two main channels in the center. It is a long thin island which acts basically as a breakwater for the harbor, little Mangroves started. Those little white spots on the end deg of the iaha d happen e to be birds currently nesting out there, other people grass, clear water. Those are mullet, I don't know whether you can see down through the water but there were a lot of fish out there the day I was out there. This is the south island which is directly in front of the Bayfront Peacock Park. Again a staggeringly attractive view. tYhou u'rnowe ethesally veryare as-ely sets that the City has in the name of the people unfortunately there is a lot of litter collecting out there. This is the an- chorage. This is from the south island looking south, you eee the ef them atsfare ely quite fax dispersed, they're anchored very fax apar fielaborate, some of them are even more elaborate, some of them are very creat- ive. That is the end of our slide show. Now we're going to switch ovt I er eruto some more visuals if I can figure out how to work this ��5' rate i thinkowe like to do is drop that screen if we can. Thank yo u. all recognize what that is. The two black lines on either side happen to be the property lines for the City of Miami. When they got this bay bottom the state after the Second World War that's what they got, everything e those two black lines and they run out about 10,000 feet. When we looked at the area we recognized that and so, therefore, we looked at the islands them - again is a ahoteof the ,marina and the ll be coming �main reason to show ck to s in a titeto yyouwhile�is thaThiat, anyway I wanted to show you what is here now. This is an aerial shot and it �e how the first three piers were put in. It also *hoes why in the that way because of t in in 58 because they were really forced to be putspace between the location of the first three. There is a tremendous amount of them. Even though they have same useful flif ttefttinithr ,locaid atrcouuld be estimated to be tan ow fifteen !ems that and that's why we've are really precludes efficient parof the bay of an overall expansion. Mow let's get down tonwea taking'e prop out as part are proposing removing all five existing down what we're proposing. {LN. 2 2 1976 �ssssssr+ MMMEMet ■ • bath and replacing them with seven new pierb. Now if you look at the layout here you'll bee that they ere ell nice clean straight piers. There are 521 blips. Currently the City has about 370. Let's start at the left hand side and sort of work our way across. When we proposed to construct these what we Would do, we would start at both the left end and the right end. In other words we'd do the two outside piers first and there is actually enough room there so that it is just possible to build the one on the left and the one on the right and then take the people who are on Pier 1, put them on the one on the left and people who are on Pier 5, let them move to the one on the right. Now, in looking at these, the two piers on the left side do not have T-heads. Those two piers are for non -live aboards. They would have a rate structure which would be 20% less than the others. They would not have finger piers and they would in a way replace or provide apace for people who are not now living on their boats. The other five piers would have full facilities for people who want to live on their boats. They would have all the utilities, 110/220, water, telephone, everything that a modern efficient marina would have. As I say, what we did when we laid this thing out as I'll show you in a minute, we worked Very carefully with the current balance between size of slips, number of boats in each category that are currently in the marina, we talked to people in the industry, we got a feeling for where the market is liable to go over the next ten years or more and worked out certain percentages. In every single category there are more slips of any given size in this plan than there are at present. There is a total of 527. I'd like to comment basically on the right side there where right now we've got a straight line. As you'll see we've built in that little cul de sac next to Seminole there. Starting at the top and working down there are two sailboat rentals in there, one is castle and the other is Biscayne and we would recommend strongly that they continue to be in exactly the same location they are right now. I think they serve a very useful and make a great contribution to the public. It is a way for people to go sailing without having to buy their own boat and we would strongly urge that they stay where they are. Following that there are same slips for commercial boats, in this case we would suggest a couple of charter boats, we'd like to see some sight-seeing boats similar to the ones they have at Baker's Kaulover, hopefully who would take these boats, might take some people down to work in the morning serving coffee and doughnuts and a little Bahamian music, pick them up at five and the rest of the time they would take people around sight-seeing. There are a lot of interesting places where you can go by water down here. Below that we would suggest that the current shrimp boats and commercial fishing boats which are operating out of there now continue. We propose that they get a salt water well. In the past, they have been using one we have over at Grove Key and I think that would be of some help to them. There are some people that sell fish down there and we recommend that they continue to do that. I think it is a very attractive thing. It is one of the things that the people of Miamarina enjoy a great deal and that sort of thing should be encouraged. Basically we gain more slips along that right bulkhead there so it is a little bit easier to work with. Now this one doesn't make any difference whether you look at it upside down or not. Actually, the reason for showing you this is that we have gone to a great deal of efforts to design the docks themselves. People who worked on these designs are people who are in the business. It was a collaboration between Runde, Driver, Simpson who have built a number of really outstanding marinas including some they built over in the Bahamas where main- tenance is a major problem. I think that is a key factor as you saw in the slides on the existing piers down here. We tried to design a dock system that would last for forty years. We want something that is going to stand up under hurricanes. We gave a lot of thought to how the utilities should be handled. There is a little bit of a cross section over there in the corner which shows that the utilities would be up on poles, down underneath the utility lines run through PVC pipe and the whole thing was worked out very carefully. We've gone to a lot of trouble to figure out what the slip width should be, bow far the pilings should be, where to place the utility boxes, where the dock boxes should go, where the garbage cans, the fire extinguishers, the life preservers, everything else that goes into it. The reason we were so concerned about it is that I think as has been pointed out at Miamarina that while it is a beauti- ful marina there are certain functional problems that make it difficult for boatowners down there and here. re=f°r the stress thiistor and that's to you because we 're looking at don' se t want to see happen something that's got to be designed right, it's got to last a long time. I want you all to see that we've gone to this work and we're actually ready to go to working drawings on it. This is far beyond talking 're �ee. We habout ave done • lot of preparation in this particular asps marina and a marina should work. In addition to the 527 slips we talked about mooring areas and you'll aim same dotted lines out there. Let's start on the 9 youth island which is on the right side. Currently there are people out there as we showed you and that area could be much more efficient if it were done on a mooring basis. The Sailing Club has done an outstanding job of :26. OUN.22 •17c oM • putting its eoorings in. they've got probably 250 in that small area there. the ones on the outside of the area we're talking about would be Much larger bOate. There is another section over the Channel island in the Middle for booting areas and there are two sections over on the left side on the inside of the harbor itself. Now we had an occasion fsome neittime baacd tnck ogo e of out infrom *hall beet with two men from the Army EnCorps DER which is the Florida State equivalent to the Cons of Engineers and we Harborwent around to check on the actual condition of the bay bottom and on the outside to see what vas feasible. Unfortunaely or fortunicantatelym de* Pending on how you look at it the bay bottom has changed what it was back in 1972 when the Dinner Key %asteerrttPla has ritten. Thee e is a lot of Turtle Grass back out there now, the bsaw a lot of fish, there is a lot of small life going on and saresult the two areas that we've shown on the inside for m000ringwarer ain aldhavese particularobe be reduced because there simply is not enough depth ofareas to put in moorings as tight as we have invisioned it. So we would have t In put addition otthat.wThe total e proposed enothatac nterwisland whichinvolved thewould island3right Inpark in in the middle there, there is a dotted line that runs out like a loop, there tting in an underwater ithat particularuarea.t It's a clean hard we propose usandy bottom and there's nsome nice Turtle Grass out there and we could put some coquina rock down and maybe move some sea fans around and I think in a couple of years that would be aplaceike where people could come and do some skin diving - no spearing or anything that, no fishing but just a visual. The other thing that the islands themselves, and I want to comment on that in terms of what we propose for them, we propose ark that the on aepark anndntheh made into a be set/ aside for a wildthe one on the south end life and bird be ali sanctuary, just totally set back to nature. The season we do that is that the ones on the north and south ends can be made accessible wonly be ith bridges by sttoo existing parks whereas the ones off the them dle Can this manner I think these it isn a little easier to keep o peoplemany years in the future if not for- ever. couldeset aside for mane mvie of We Ctoconut about Grov. They arehak ittjor important ththe ethat bee donee with them here in Calked Grove and I think is impo getting bridges in, I got a letter from the Coast Guard on that and they said and e could put south end, theyll swere noto ach of the optimisticiabout putting, one noneeevertto and one the middle. Mayor Ferret Spence, your half hour is now up. Mr. Meredith: I've had d I'few minutes into it, what shall I do? Shall I rip through this? Can yougive ma a Mayor Ferret Well, I'll give you the same courtesy I gave that other gentleman if you'd wind it up very quickly now. Mr. Meredith: I'm sorry, I wasn't watching the clock. I'll tell you what I'm going to do, I'm going to skip that part of it because in the remaining time let's just get onto it. But what we propose in addition to that basically optional thing, the key parts of the program had to do with the perkdocks moorings and we also suggestedthatthav thex off-shore leaseslands be down here who are interested inez- a making of peoplewhoto have existing Gave Key, for example, would be inter- ested financingimprovements nttheir pbasis a improvements to the hangers so they' in moatt on its and carry additional inside. Merrill Stevens is interested t inmore doing majorive andcarry nts to its property and would like the opportunit t dhink major imp the things that probably opportunity to talk to the City about it. I think you're concerned about are how fast could we dove on it, the point I tried to we're in a position ahoy you is that we've gone to a lot of two b e,one ourhomework, think we're we're ready to where we can dove very very Q� going to finance it, we pro- pose Vow, bow are we going to finance it? We're g pose financing the public facilities which are docks and ooringsiandoparks of with a revenue bond. A revenue bond does not in any way the City. It does mot involve that. It is a revenue bond which is financed solely by the proceeds of the project itself - entirely. I want to rethe state aith that so there of t noC City. Itoii notra taxpayer Obligation gationoes not iit is the project and cf. V ofthe a. management contract because I think Mr. Dubbin is right itself. Me y proposed levisionary clause in the title would bold up in court, on Chet Phebably the other band it is liable to invite litigation so we tract isaeclavoid aaner and litigation and so we just believe that a management TN. 2 2 19/8 2 Mee Mee sese ner Key Ecclestone Management Company simpier Way to go on it. Now in terms of revenue! to the City I think the bleat thing is to look at the chart that is over here. during the first thinginitiii you've got some old piers right now and we proposee structures. _ stage that we operate these piers for the City, m the e rate old cues. remain the lame, people who have old piers should not pay nk that is only fair. That I think is a matter of great tconceerrn to them. I think when new piers go in new rate structures apply c king about financing this thing, the elements for revenue bonds for the docks, the moorings and there is enough money in the revenue bonds to do some of the off- shore islands there, that center island, set those aside. Private capital would be used for Seminole, private capital would be used for any yrivprovemeits to Grove Key, any improvements to Merrill Stevensehateuldnalso e guarivate te but it Wesomething suggested, and this ishappy y not oswwoorkwiith you, but there are federal it is something we would be hapPY pro- grams which might make possible funds to make parts out of those north and south islands. We would also want to explore the possibility of including some of that in a revenue bond. In terms of the revenue we have offered the City $180,000 minimum annual guarantee or 25% of income available for distri- bution. I would like to explain that. Once the piers are completed you basic- ally get revenue from the piers. Subtract bond service, debt osservice,ainsur- ance which is a very minimal amount, I've gotten some quopP taxes, ad valorem taxes if any. We don't think that there will be any applied, if there were this is a reserve for them. That then becomes income available income available for distribution. The City would ge 5% of ftite which h would nto ater aye out to between 1?and 1put thisgross, strictly so that it was an assurance it. As an alternative, and we p we said 50% of net pre-tax profit. We don't recommend that because I don't think anyone wants to enter into a net lease but we've included it here. On the Seminole, we talk $12,000 minimum annual guarantee or 6% of gross revenues and our suggestion there was a seafood shack would i prove! hede boathramps. 1 t think that's the bones of it, I'm sorry. cav on it. more time on this obecausenId think the background.eare some interesting asps In our proposal y Mayor Ferrer Well, as we get into the question period you might have that opportunity so we'll see. Thank you very much, Mr. Meredith. Now we go into the next group, Mr. Grassie? Mr. Grassie: The last group is the Ecclestone Management Company, Mr. Mayor. Mr. Robert Norris: Let me run through this as quickly as I can because I know everybody is ready to leave. First, the proposal, the plan we submitted to the City of Miami. We plan to rebuild in systematic order erwthe heneentire struc- ture of the docks. This will be shown to youminutes. h means s means total destruction of the existing ricks buthe I wantks toaesphcs. The by a system, not walking in and tearing rea- son that we feel they should be totally redone is the 6properydesignan to my of the docks but the areas between for maneuvering. model and add to the present Dockmaster's facility including suf licieotcrest- rooms and showers to serve the entire marina there. Third, we P struct a new structure on the Seminole landing site to handle a convenience type store, a snack bar and some retail space. Also, new lodging piers be installed and we'll renovate the waterfront and9po the areasseain island Sele m- inole area. We plan to construct a pedestrianWe d woue ld cleanup the other and create a clean picnic and playground area. mole islands but do not plan to improve them as of this date because we 6eel it is impractical due to the permitting. We feel the plan that we propo We a basic plan, can be easily adapted to any future land -side development will speak of our development later on in this discussion. swion.11 spNow iI'd 0like i,e0to 0 turn *hove improvementMe s. projected imarilyto you this will be money spent on the docks. for the above imp Mayor Terre: Did you say $3,000,000? Mr. Morris: Tes, sir. Mayor Terre: Total? Mr. Morris: I believe that is what our projection statesaeno ere. areas this will be spent on the docks. This will be spa things of the Dock aster's Office and the Seminole it noel in our There areals ether sns that we will doh as p have pas such as the improvement to the s�outh'o1e landscaping, such as some Pa UPI 22 :398 ; % 4 1 i Wind. We feel that our plan lb a basic cost effective plan. It is iMpoasible for us to sit here and tell you that we Will not have increases in fees. We projected our fees as we told you in the Miamarina we Would hold out fees to fi period of two years. We'll work but we feel like that is something that is to be negotiated. We hope that we have a plan that will ict bestdat serve th tppocket,. book of the boater. We hope to present a good e best basic facility while nwe feel,offinancial na reach of teshrsfinanciolfin- aneial, Ecclestone Managementhaste anal mort- gage to construct the entire project. We have approached they feel iiey°very possible thegage. We yave could dsecure first mortgags from them eafunds. Whey aeel that it is veryb We realise these will be subordinated, they will be be put will be subject to the lease. The remaining pot up by Ecclestone Management or E. Lloyd Ecclestone. As we've told you before we do have experience in management of marinas such as the Old dPort Cove Marent - ina and we feel that we will be able to present a g went eprofesistaff and our seek picture but we too would like to think that our manag Staff is going to come out of the Miami area not out of the west Palm Beach area as has been implied to us. As to our pan,I would hike LuisPlanAjamis• of Post, Buckley, Schuh and Jernigan to explain Post Buckley is well known in the area say believe projectsthate largest we teengineering we firm in the area. They have done manyyou all started working with them in the Biscayne area regarding nasa that yoe know of. They are doing a lot of work for us in a new project PGA Project up north. So at this time, Luis, would you want... Mr. Luis Ajamil: Thank you. Mt. Mayor, councilmen and councilwoman, my name is Luis Ajamil. I'm with Post Buckley, Schuh and .Jernigan. for many years We'reg consulting specifically and r have been example,involvedu've been looking at many pictures of the Miami here.nPO! esig Miami Beach Marina. We designed the Miami Beach Marian which is the largest marina that is going to be in operation in Florida - Ocean Reef Marina. So we have been involved in the business and we are definitely into urears to in the permitting end, the environmental end. What I'm going ngptpresent which was you today very briefly is the concept. It is a p based on the criteria that the City gave us in their request for proposals. It is a concept that we explored to its utmost and that we have developed within three criterias that we think are critical afor the f the developmentboating Dinner Key Marina and they are (1) the recognitionlam that compliments of community that exists there, (2) development of a p Coconut Grove, a unique community here in Dade County oand do(3) he opt mu r- usage of your natural resources in the area so that Rio n now posdoing self to a plan that will not be able to�be permitted.lyzing the Reight areawe're the large amounts of work forthe rt. their futurre eexpansionand we are out there ne right here othen port, regulatory agencies' office every on the company boat and at the DEA s and recta rlooking forgood andwhatel is£or realistit chorewhatnises notarealisticthandeI hope areapproach to these objectives. and I know that this plan reflects a practical lplan. It looks very much Basically as you can see here it is a verysimple is a plan where u util- izing the plan presented by Grove key peopwe're ug izing the existing space that exists in the marina. We are not eCexpto an g outside of the existing barrier islands. We nttstoduserthe spacenels its utmost. Tbare is a lot of space that is being lead- ing up to the piers right now and that space could be developed intincra lag the number of slips of �ianaup to incr increase. 520 from As youhe knowisting and as you have hun- dred and something so it is quitedeterio- rated looking for the last half hour the marina a itshe elf to goise. rider now rated condition. We feel very strongly go in and replace all of the docks at one time and not have the continuous the Coco - maintenance problems calla mould be more costly to everyone concerned. As i said, one m the . Cur simpls e doessno is callzina fit for any high-rise r Grove oaWe want just the existing structures and upgrade the con- struction.kalStSWe want to and maintain j time we want to continue what the CoCo- conut Grove area is known for, the recreation and its love for the M°tebring- it's association of the land and water. For that purpose we feel that ing in a bike path, board walks up through the marina where you would have another experience as you go through there would be very helpful. The con- struction of a pedestrian bridge to use some of the outward islands is has been mentioned before and was mentioned in the Master Plan ee think healthful specifically on this southern island. The northern island is so close that people can actually wade or take a canoe out to there and it LJN. 21 1978 2 y yffetis & different experience. The two nutter islands tight now offer the to move those or to work environmentally damaging it would create a �urricine protection for the entire basin end to � you right create a prob- with them impact onlyt would be very great impact but it might if they're not doneright marina area. Finally, lea in terms of hurricane prevention of damageWe're trying to use the approach is the approach of practicality. the tang spa as possible trying to build a maximum number of space asp efficiently of piers and slips within the space and within the construction ellowabastffi un- This will reflect in tfinalbeneficial tostheat are boaters withined theor the the uterine which would onlyb turn to be practical approach. We tried to reach the ity. keSoy basically our plea is a compliments the environment of threea key hms. We want to have a plan that comp and that compliments the need, thatfcompliments community withinove thecmar natitself. Thank you. the needs of the boating Mr. Norris: If we might, we would like to show a few slides, about ten. ant. onlydpatting thing This is a project that we have in North Palm Beech called•Old Port Cove which ro sal a future plan. It was a plan of is a morns and office/condominium pro deveosal hadpmThwouldl like I suhave to say isw regarding & p our proposal able financially, we make it ye not n pWene wo that like to fit to our we bid to thithat very cpaean• ro ector we'd be shot. We thank you very much. we think we are capably manse penj'wise, if it came down to where we hadto be capable of renting committee with us? Ike, Mayor here didry: All right,Mniaconisdo estillstill here? our I assume wsilltillto tfoll w where you go? Is Mr. rning. Anybody have anyobjections the hat? The Chairmanmof the diMan ger'sd this oCommittee.... You didn't think you would come up to bat tonight, did you? • rina Proposal Review Committee E. P. Iaconis, Chairman Mt. EA,. iaconis: 1 figured it would take a few aloft minutes, i beg your pardon. i vas standing by in the wings. We had our preamble in terms of the Committeeso 1 willtjust go on ttgo and tonthe rom Dinner Key items. There were three groups, groups each group. The major criteria that we u8ed as nhovgrall guide with have the that we present to you, were the following: experience therequestsue for proposals, what was the returnto the City, wht was the expery nce of they people as regard to the marinas, their financial qualifications, handle th werevtottake o er,therme arine a, awhattwould ulthd ezad vrat taxtsituationibe, e anderns question of permitting, based on the extensive changes, how would they handle that, restorationtofe q andnothertareas, the,turtlegrass in tthe shallow areaaybottom in ssnforrmoorings ale someislands, and are they marine -waterfront- recreation mentioned, vas the proposal f 11or•p�ai�BterrplanZ recreation oriented and did they These were all items that were outlined in the request for proposal that were specifically in some way to be related. Biscayne Recreation, in terms of their tprros , have the largest t. numbers of slips d which they are presenting to the City slips. Assuming that they can do this, this rresentsof elbest aproposal in r terms of the public interest in havinglargeent number of advisory board, a bulletin the marine-t‘crcation-oriented public. They toea bulletined that would be produced, a chart house and weather station btoehelp elllthe marine-oriented citizens,...these are all considered by the Committeetsignificant Theire guarantee of ess0,he uestionn as to whether ornimum in the first onotathis�•representstaosign three. We will address the q amount of revenue for the city in a few minutes. In terms of the negative factors,.... Mayor Ferre: Mr. Mananger could we get somebody,.•.to get our background to drop a little bit here? Mr. Grassier We will have someone go out right now ,Mr. Mayor. the 40-year lease for Biscayne RecreationMr. nnwas considered: Ia eelef the ninacomparison to the others. The minimuaatee. uevan ilengthy even though it was the best guarantee. now. We inec ssr thatatisn estimation was too low, We will discuss in a moment. As • matter of fact. I will available for In the 1976-77 fiscal year, the excess of revenue over expenseter 50 ordinance, use in renovation of dock facilities, as discussed einothe d of Chapter 1, 1976n through Sep embover 100 t1housand dme rem dThis ousttat tom heordinancevent into effectin prlmof 7o ve Let . remind y April of 77, so ve had a six-month period under the rates from 1969,.•• periodd with the rates under the were ordinance, and tthere ixcessoof net revenueasix-month e. In other words. if youordinance roitover bep$we have an eight -month period under the new prplofit wouldibe $100,000. JanMowuary 1, 1978 of an additional 5%, following the formula of Chapter an increase as ofe January t months period projected for 12 months, of the50 ordinance. and over ,tinete of renovation, a projection of will give city, and the marina, $183,150.00. That will be a total of some 283 thwhich ay�that00 tt'thmar marina ousand dollars in a year and half under the net+ ordinance, ewhich saysming even before the itself, which we havei g to have all along, ond. which ordinance, is new going to have � of October 1,1978 almost $300,000. on its own, ar use really, lly, iin u' es�tion,tlooking at i150 tnfr from minimum vevery grand point of is the ndst, really, point of view. indicates view, and not from a grans analysis. and financial play :foal 2 2 1979 3 0 sass • ■ as t !entioned to you, I received that on thoses fin lly, and unfortunately clock, and yet I was happy to have some these figures finally todayucase to show that the marina is paying its fay. No to onlyyethnt to you ini any job. And I would like you to twat. Not that, but it is doing a heck -of -a be aware of that. Therefore in terms of dollars and cents, none of the proposers really in our estimation, have provided enough. However, Biscayne had the beet of the three. Those are the items concerning Biscayne Recreation. The next group is the Dinner Key Marina, and while Biscayne Recreation said they would like to renovate and replace as necessary, piers 1 and 2, and then renovate where necessary the other piers, Dinner Key Marina says that they thel say that all the piers are shot, they are no ocgood,However,svienced by nced they would slides/ although some of them look fairly,lus, said Let's stout from have a complete et's headnnaintenancepiers. from thatconsider particular point. And ight sayatha tgccl s havenegoodement said the same thing. So we had two groups at wan that Ee eerepla replacement, group said they would repair and renovate as want complete repl=hemcost down necessary to keep Dinner Key Marina also indiated that they would have 375 oorinmoo= gsthesed moorings would be based,(this was a positive items),... be based on dredging to some extent, some of the shoal water in around the north island near Kennedy Park, and other areas that this they have still already to shown you. A negative to that is that the permiting forpositive condition. Other things that were positive were the be anticipated. We don't know that it will occur. If it does occur, the moorings aa p a habitat breakwater, and a south island park. islandlf these, a if wildlife ztoupro ress, based on permits from agencies such psrk. ACl st taCloweod top B as the Coast Guard, the Corp of Engineers, and the Environmental Protection AnAgency, rovide some positive aspects for the marineoorirented tenants., was cod people innd terms of the p etc. would p public interest of the City, n- sidered positive. you today presentation made for Y and I don't The not the p are alsotto bea addressed. The p the presentation. was not the presentation that we heaay rd. We did erpart of thedp, Theers that furtherieplantthat they showed you in terms of revenue to the proposal Dinneradi prKeo Manna p city and improvements in the revenue bond, is °l6O Teseatationifferent �One ofn the theitems and it was considered negative by the Committee, was the and it is also different from what we heard in our that was brought up, questioned and Prot that Mao some oddc thsuanprd ivaterlease with the City. When weeI uestionsed to edpwill Grove Key Marina, which is a private no question about it, be. Meredith on that, he sitd walelt , is not in the best the rest of able to doi it. the The Committee bond money tfor the sprivate interest and iweewould City, using p like to bring that to your attention. guarantee was specified Other items that I would like to mention to you is that no B apples -to -apples seciie !farina in the first two year period. Now the only to co pariso Key phase, putting in the 500 docks. Because going then next as had, the firstap that it was impossible for us to make conditions, as our guide, the dgme phase requiredusog thefirsttwo years of the phase I approacher at thatid n judgment. Hywuar. usingmoney from the develop.: not having any guarantee that si wouldedreceive any discussion the ant to us was considered a negative. We indicated the fact that the permits it our as supported by permits in estimation would be present Mx. Meredith's s presentation. And with the Corpe a ation, cat askwho vas specifically some of the factors concerting it se of the plan tight be difficult. It is a management contract after the presentation. we asked sp titesaad I will rarely say and noto told us This has already beed discussed many and a lease• request far proposals, specifically talked about a lease plan. in sight that the sanadministrative point and the city may do what it wants, Tau however y your thateproposers arming your request for proposals specifically. however other proposers followed Mr. Meredith did not. lied. Endorsements in the proposal of Dinner May !farina Inc. were indicated or imp could not verify it. and in one particular case it wao s four note to bewveri we specific evidence that was supplied be verifiable at all, �J tix 3 rsl�,€,h71;, 's" ix,µ :'cw';' t M6 • • 111111 IMP 111111111111111111 The dock tates were the highest in the Dinner Key Marina plan. The dock rates in Biscayne Recreation, and and 13-c nt category forliveaboard6. Mx. Meredith said tfor non-liveaboard sa dchewouldcharge a202 lees factor, but his basic rate would be 18 cents. In cur estimation that was a very high rate in terms of not only the return but also in comparison with the other proposers. He mentioned that the moorings,...the 375 moorings which were to be helpful on an immediate basis if that were possible, however in his proposal you will find that he wasn't sure how the launch service would be handled and in his proposal he said he would be considering a payment for the use of the launch to go back and forth to the moorings. Upon further discussion, and I understand subsequently be indicated that the launch would be free,...that is not what we heard initially and it is not what is in his proposal. He mentioned that there would be individual meters for electricity on the docks. In our estimataion, since the city now pays a bulk rate, and has meters on each pier, there is a very favorable condition, not only to the city but to the marina tenants. If you went from that bulk rate and to just the general meter,..to in individual meter, our understanding was when we had the rate hearing, was that the individual meters would then be chargeable even if the meter did not register anything because a minimum bill, some minimum y that, but the city of ami losenthewbulk ratould bee feeewhichargd toecertainly ach nwould be. Not ldetrimental and naturallyiwouldy be passed on to the marina tenant. In terms of being able to evaluate Dinner Key Marina in terms of their current standing as a lessee with the city, there was one particular factor, in reviewing the lases to see wethehe y GroveeKey, Inc. a lesseerwithornthet tcity, wehe efound , as ithat ione rofethe aitems rina ithat s wunder is not in compliance with the lease, is the fact that it states that a crane will be operating for boats under 28 ft. The crane has not been in operation for two and one-half years. Upon questioning iorthe Dinner Key Marina uttynvind that that has en no waiver eitherally or inwritlgbthe City he does not have to comply with that portion of the lease. That is an indication of what the situation is. We simply bring that to your attention. That covers the negative areas in the Dinner Key Marina. In the Ecclestone Management, the complete replacement of the piers would be considered a very positive factor as it was with Dinner Key Marina. However as a negative we found that Ecclestone Management had several conditions which they felt the city must accept. For example, 150 parking spaces must be available at all times. They will provide 50 slips for a boat show. The city must maintain the showers after they renovate them. They do not wish to maintain them. The city is to maintain the mole islands after they make the improvements. So they did not wish to get involved in the maintenance after thynake theInitiallyinp oe ants. This is a part of their conditional proposal that they provided. was no consideration, or I should say very little, given to any boats smaller than 35 ft. Their smallest slip is 40 ft. When we asked as part of our discussion with them, what happens to the boater under 30 ft. they say well, there really aren't many boaters in that class. And when we mentioned that we had 94 bulkhead slips, ..of bulkhead and pier 1 slips, for the 30 ft. and under, which represents a nice percentage, 30Z some odd, it cane as a surprise to the people who were presenting it, which included Mr. Ecclestone in the second presentation. He therefore said that he would reconsider that, review the dock situation again, andthave acre because slip facilities for the smaller boats. That in very quickt t ce b ecaus. of the interest of getting through is the pros and cons concerning And with than Mayor Terre: Thank you very much Mr. Iaconis. It is 6 o'clock and we made a commitment to break at six. lamas. Gordon: I thoughto breaking twe were aad then wee would ing to hear coste back. the presentation about the trust, prior Mayor Terre: $o, we didn't say that. Tou said that. What we said was, that we were going to break at six and come back aoth er and hear 73r Mr. Dixon for half an hour and then we would take up the Iev. Gibson: May I make a comment before we talk about the trust. Sir, what Is your name? JN: 2 2 197B 3?- Carina Trust Instructions to the Staff on how to Proceed Mi. iaconis: Hy Here is Ike Ieconis, your Honor. Rev. Gibson: You and your committee,...vhere's the Mr. iaconis: Mr. Dick Cummings and Mr. Pete Sawyer Rev. Gibson: Gentlemen I want you all to stand up. I want to thank you citizens,... Mrs. Gordon: I do too,... Rev. Gibson:..for the enlightenment and the presentation. t ve had excellent Mr. iaconis: Thank you very much. I would like to sayto cooperation from the city, as�I mentioned before. I would lad MrJentionrtzo people from the City Hananget s office, did ervery good job and we would that to . Clarkwho nave us excellent support. They be brought to our attention. Mayor Ferre: Hr. Dixon do you want to say something? I would ask,...I don't really need much time to talk about theh. Trust. wouldReo et be considered. ITrust. I th askgfurther the rsaymrelativentofthe eTrrust othCity er than his comments, I have really nothing peopleto say public that have been waiting and I think there's a lot of here in the P and then conclude the meeting. since 2:30. They would like to make their comments, I have no lengthy statements to make. Mayor Ferre: Now back to the item we are on, and ve will eee how we wind this thing up. Mr. Massager, here's the way I think we ought to do this and we will the Comai66ion for a statement, if they want to make a statement eee what themembersof the Commission feel. It isforo that.Thenwe will recognize each member27th at thisdutthi• foro furtherquestions, public hearing eitherian the July 13 or the July meeting, whicheverhir feeloup get it on. At that time, I will then openit upefirs, forqyou rve can and then groups up first questions from fe��®entthforom�embetsnof thecpublith'e three open ite up point. I am going to express my opinion in a we and then we will beyond that unless will eee as what happenshappen. That is the format as Iei, moment toe want I tohink shouldat with regards to the marina presentation. somebody else wants Chang say that I mould waive my Mrs. Gordon: Mr. Mayor if I might just simply comments for some member of the public that has been waiting here for 4 or 5 bours to speak. I can comment sone other time. Mayor Ferre: All right, Mrs. Gordon, thank you. Father Gibson? read to vote if need be. Rev. Gibson: i have no comments. i am y want the City manger Hr. Reboso: Mr. Mayor , you mentioned earlier that you at the next City Commission meeting to come... future meeting, it may not have to be the next one. Mayor Ferre:...or at some MX. Reboso: Vith vbatT er should study these personal opinion that the Manang as to how Mayer Fence: It is depth specific recommendation d actually things Citya sound proms andi came ibmprovements with a the should proceed in the i.nprovements on marine �houldltbensdecide whether .and the commie I have giveius a with t eon of 1 r or disagTee. In the past ve have disagreed. ve agree with the �� no problems with,..• from t to disagree with that becausetI have vas eard d,todayhe presentation Mr• Rebosi: I vas , inthe final presentation Leonia that of some of the thecaspresentationmade to us made pre- sentationtthsm, nethethug ,fit is my point of view• The sooner we go Tf ve decide today not to vote,then i would like a la the one we beard today• over this matter, the butt;. last An 2 2 1978 33_ Other two people' will be here in a few minutes. As a grateful commissioner, • • I E is-ii-ielelfaier,?A40. ttghsetipt of what the recommendations of Mr. lacoaie Sid to be futnished with that, before the next meeting. If that is the will of the commission. Mayor Ferre: We go by the majority, so whatever the majority wants to do, is what we are going to do. Mr. Plummer: I waive my right of questions this evening if it is going to be cotiued whch will allow me op more areasnofnall ofith presentationatandewelwill take uittup onions ithe 27thnto the particular of July. Bev. Gibson: Am I to understand that,...so I can have my head right, the Manager will give us his preference 1, 2 and 3. Mayor Ferre: No,no. That vas just a recommendation, that I had. It hasn't been accepted yet. Bev. Gibson: I thought all along,--ve ususally say, this is our no.1 or No. 2,.. No. 3... Mayor Fevre: We always have that choice. I might remind you that I think without any exception that I can remember, since I have been on this Board, the Mananger has always come in with specific recommendations as to which is first, second and third. We have not agreed with him many tims.Tereinke aretaat a lothoof timesrthatn- we haven't agreed with the Manager, that I personally the able way to approach this because the Mananger hd as btce staff, th tcefperso personnel, recommendations and the time to go into this thing in depth, reserve pe if c r eco do, atd as to hw we should proceed. Obviously weesrythe occasions, as we calwaysido has I might remind you that on several very imp it shouldh overridden the Mananger's recommendation, which is fine. That's the way be. Rev. Gibson: Let me make sure that I leave here tonight understanding. My under- standing has been,the Mananger brings us back...says these three companies are qualified.If I am wrong, I want everybody to say Gibson doesn't know what he es talking about. They Manager usually comes back and sayssaa sejthTee compania, are qualified. Or these three companies do the job.... we then say, (I want to make sure my head is right, so I don't go out here thinking wrong), then we say, these three people are qualified,...fine. Then the Mayor ususally passes a ballot and we vote. We say, No. 1,2,..• like that. Mayor Ferre: Father I think if you go back in your memory, in every case whether erit Manangeralways is an architectural rtanksural selection, electio , or selection of bidders on things, the Mr. Dixon: Mx. Manager, Mr. Mayor, all I am asking is, the agenda says the Mananger will make a recommendation relative to a proposal for the creation of a trust. Mayor Ferre: Mr. Dixon, I have already told tyouime,once that we will take that up but ve are not going to take it up at thisMt. Dixon: Is that too much to ask that be sake a recommendation in 3 minutes? Mayor Ferre: No, sir it is not too much to ask except that you happen to be nut of The ig to give up nomy is dinneresto bear item 2221. You are ere on if thattiiss the vill1of this peerffecctly willing commission. Mrs. Gordon: I would like us to conclude all marina interest at one ti Item Mayor. n. but mm are now on 21 and I will ule: I b havey nut ofeorder who to wat Mrs. ants to talkoon item 22. Sc xill take that up I will rule anybodyelse have any other eosents on item 21? as soon as we finish this. Anybody Mt. Plummer: I do Mr.Mayor. Let se tell you what this one vote is looking for. Somebody else expressed it. but I want to go a little bit more. As far as 1 am concerned, in this summary sheet whivast as eanwantded edeto me odminto be used, out tot comparison if you wish, or however youwith definite go into every presentation that was made here esthis evening, the co up that scared definite youowouidn't let me asklethe information. the one company from West Palm Beach, That hounds good but what do ptepoied to redo all the docks at one time.ds goo These are the you do with 370 people while the new docks are being shaking your head factors that 2 think s have a goodeanswer. ButualleI am Keay said aing olyau the and I am sure buildre itwo, move those out, build two more,.. he Key that I same time. These pie comparisons in revenues Does the administratink this ion°sion must feel that l. What are the Walker that that is feasible. Can it be done, a plan A not, Paul does and pr Compsa leave without that permitting up comesod if not, what thatdoes this i pitself, has either twice or three ,times, gone ty thee to do, mind, outhe city are talking there to in a round -about -fashion what they gentleman, itselfhas been turned down. So I have to take, and this siootherabgan, even tlemg those thouughh he is a competitor, says that their serious quest islands. I am basing it on Paul Andre well knows that we vent to the State of adorns and both times turned down. I workable or isld itlike not?to know nd7if itaisa not, the administration can where do ve come out with that op t the What you'veay the negative,hwhat's left,aone point,.••you've g the Mayor and I agree in only pick them apart, go, " ' o back, take each one of these things and p see and the pbacketo thisand oC.n We againstigt at this point for you to rate A,B,there is too and come back to commission with answers where we can compare the other.rpoint, notb looking you, that as far as I am concerned,for mot to reach that inut I tell presented to me, much discrepancy the material which I have here, make any definitive answers or decisions. questions Maker erri: Anybody else in the Commission wishes to ask any 4 s or 1 make anyWe don't have sufficient information other comments. I wish to state on the record the following: I don't think er are ready to vote tonight. Iaconis and the committee for the wonderful ess and I think there's a lot of confusion about an awful lot of things. Nu1 I really want to thank Tin. to vote tonight. No. 3 I do job they did. Two, I don't thinks a are d staffyshould go back and review all the personally think that the connel specific recommendation to the the one thing that we are not information as toolhow and come back e a Commission how we should Proceed. Four, going to do is nothing, es far as I am concerneeo-iinnl this ed Mavote. No. five, concet t � want to state e asch vfar ds the day, June voted Dox upon la asinobyw this that has as much validity today, in June lihatavathe Dozladis Plan has n Miami, and that too, was the Master Plan, might remind you. The fact accePted that the my fares! opinion. Costersion, has not note been rred to an I is far good reasons why it hasn't been adhered to. No. six, and !Basler Plan has not been adhered to and for valid reason in cation to g And there's a lot of g has the Plan -syndrome. You can call it the as the toaster Plan is concerned, I do not accept anydrome,...or make one more plan. This community s drome, or the Doxiadis-syn you -name -syndrome, or the use ve have City -syndrome, ndrome,they are not paid attention you -name -it -syndrome, because ve have been studied to death• Most of the studies - never fall into the patterns of are they more oralways less ob whet the six of the paper e' and tternhave you, to,eity, and you see int inz wanes, they ties and banks, reality, and you could see that business communities where all these plans are absolutely worthless six months later. We have been and see what it is we are going to do as far as 'planned to death. We have all the plans ve need. It is time for us to stickto common-sense mmon-sense approach improving our marine facilities. Miami don't panic, we have thick hies,the ebave a Herald d torint isto ron't affect in test. If anything,use my veryerylh editorials tr trying to bring myselftdown to' being objective, because fall hard time [Lying exactly the opposite. And I don't want to fall into that sin, and is to dos, have that kind of feeling one -fifth a anything. of Iowa to ten, sad it that a are a lto yawill cast my vote, which is this case. I want to tell you i personally merits of what I think is right in thiso Commission, completely on what or anybody else is going to do. I think ve resume what i, ng, but I end h don't longngt anybody go 'There's an awful lot of discussion remaining, to sit around byye a thhat it is time to fish or cut bait. We are not going to nit are and have re plans. If I have anything to do ith, [this Commission iY by the have anymore e it is within the next �► fake a or latter, mod 18, to a conclusion in our deliberations, , sake a marine September dtpro, a will cove loch -needed, long -needed, improvements decision. and proceed op a :11k. 2 1978 .3S MM MM MM • mission will hear Public Regardint the Marina Trust before Concluding the Marina Proposal Selection Process ■ tt� fAtiiitits. I hope when we come to that, that we will get into a closer defteitioe, item by item, as to what exactly it is that we intend for the Mananger to negotiate with the successful winner of the bid procedure. 'that's all I have to say. Rev. Gibson: Let me ask s question, Mr. Mananger, how long does it take you to read these documents since you have such an able and competent staff. as we say, and for those citizens, these three men,...they are the best thing I have heard around here for a long time. You could use them too, and come back here on July 13th, the next meeting, and give us a recommendation. Is that possible? Mr. Graesie: If the City Commission decides that that is the direction that you want to go, we can try and do it by the 13th. Commissioner Plummer suggested that we bring it back to you on the 27th. If you would like it by the 13th, I think we can have a recommendation by that time. Mr. Plummer: Let me just tell you why Plummer says on the 27th. It is assumed that you will have the same problem that you have today, that is we will be going long hours, a lot of input, and that's my wife's birthday, and thete's a party scheduled that evening for 6 o'clock and I am not risking a divorce at this stage. That's why I said give you more time, let's come back un the 27th. Mr. Graesie: It is a pretty good argument, Commissioner. Mrs. Gordon: Mr. Mayor I would like to see this conversation on this item suspended until •,e have had some comment from the Mananger with regards to the Trust. We can't divorce ourselves from a possibility that that will be the avenue we are going to travel, if in fact that is the recommendation, and if in fact further investigation proves that that is the most feasible route to take. Mayor Ferre: I accept that. Mrs. Gordon: Could we hear that part now? Yes. I accept that. I just want to make sure that everybody they had to say on the record. Are ve finished with item 21? I have heard four different approaches as to what you want What Mrs. Gordon is saying, Mr. Mananger is, that she doesn't to a conclusion on 121 until she has heard 122. Mayor Terre: got whatever Mr. Grassie: me to do. Mayor Ferre: want to come Mrs. Gordon: I want to hear what you have to say about that. Mayor Terre: I think that once ve have said what ve have said on 021, I would accept that is the will of the rest of this commission , that bear 122 whether it is now or 7 o'clock and then perhaps ve can test is in this commission. Mr Graesie• I am sorry Mr. Mayor. I wasn't very clear. I just vented you to a recommendation tell are what it is that you are expecting. Are you expecting from me on 121 and if so..... Mayor !erre: I will repeat it again. Mrs. Gordon has recommended that ve not come to a decision on Item 21 until after we have beard Item 22. What an saying, and what I said, and I will repeat it again, is that ve will not come toa sion on 21 as per Mts. Gordon's request luntR mo have beeardto 2.thIf that is acceptable to the rest of the eosnission.... Mts. Gordon: Then we will make a scheduling decision or whatever.... Mr. Plummer: ltr. Mayor after my other comments otithhe nth, th,Ileet t mel tsay ay this. Tau might want to consider it. This is an importantMayor i an almost I'for one, as very such opposed to additional meetings. but Mr. May don`t at the point where I feel, that this warrants a special date, where you hider other items, Where ve can take this item 21 and 22 as a patkaBl, agreeable to a special meeting just for the call Of l Would be wooing and this item, so that we can have this item only on an the purpose of hearing agneda. That is just one person's comment. me Gordon: On. I will table any further discussioon2lifothe e Mayor will let toe on Ittemm 121until we hear /22 and then go back Mayor Ferre: Let's get this idea Plummer has put out and see if we can choose have any objections to doing it that way? Getting another a date. Does anybody special date to have the item 21 and 22,••• le are waiting Mr. Iaconis: Mayor Ferre we are very interested, and the people patiently to hear item 122. Mayor Ferre: Yes, we are going to come to that in a moment. Mr.Iaconis:Then after ve hear that,perhaps they can, ..... Mayor Ferre: We are not going to come to any conclusion tonight, Ike. Mr. iaeoais: I understand �at, listeneto uWi11ld 1we be able to do that? ke to hear item 22 and thatt6 what the people are waitin8 to Mayor Ferre: I hope so, whether it is now or 7 o'clock. We will decide that in a moment. e ct e al. lacady spent the ware2 saying, nut Mrs. Gordon has mentionedwe tonetherfact,ve respectfully already spent the last 25 minutes debating request, why don't we just go to,.... Mayor Ferre: Mr. Iaconis, why don't you sit down. Unidentified person: Mr. Ferre, could I ask you,.... Ma'am, we are not at this point listening to the public. We will inaMayor very short while, if y MFerretyou will just be patient. a Unidentified person: I just want to know when. Mayor Ferre: That's what I am trying to determine now. Mrs. Gordon: We are trying to get the Mananget to talk about 22. Mayor Ferre: Would you select a date since,... Mrs. Gordon: Not until I have heard 22 Kr. Mayor. then I will be glad to discuss a date and time, and anything else you want. you, and I an Perfectly willing Plummer, I made a commitment ck to It deI your perfectly willing tooyoi Ferre: i'i� of breaking and coming the dao• n. wise up to it, It vas a fair TequG6t' You asked for it earlier duTvh�ich I intend fully to do, Mr. Plummer: If Mx. Dimon can be held to his word, be has three minutes,... WATERFRONT TRUST — Discussion: Mayor Terre: Go ahead Mr. Dimon. We are now on item .22. Mr. Gruaiie, Cty Mat+moger' Thank you Mr. Mayor and sir. Plummer. the Ctt,What are y Mr. Tw Dimon: considered and met With us on to say alternative, wouldask you, after having youurrcotcomment, tvwarda the relative mrits of intereat?�e Trust as opposed to lease public property to private Hz. Craasie: Mr. Mayor and members of the City Commission ..... VV. Plummer: Repeat your question. J04.2 2 1978 J 7 City Mananget, 1 would ask you after having tenet with tleinbeh'e b'tom Dixon:peoplethata• the Trust, that you will give us you ebb:1ent9 eathe evarer proposing of ublic ptopefty a§ to the relative merits of the Trust, in version to the leasing � for private lessees. Unidentified person: That's two questions. Mr. Plummer: As I understand the question, please so that I can understNo.and2,�+` the answer, No. 1 you are asking for his opinion as to the Trusts Mr. Dixon:..as to the Trust relative to, leasing the marina. Mr. Plummer: Two questions?Pine. questions asked you. Mayor Perre: Mr. Grassie, we are on item 22, and there's two q Mr. Grassie: The last time the City Commission met the Waterfront Trusit Co i tree, it made a very brief presentation to you and suggested that you recommendations for the establishment feanvauthorityuld ber done trust. Athttthat tdtitime, youo easkedp fro er. with them, The you were alyp it general. have has done that. to•make themoriginal pecificideas enoug esootthhatte wcoe fairlyevaluateuld eeiI hipaper you have in front of you, we passed it out afew it. Io,...inthte inthe have in front of you, you have on 3 pages a a hoursti a ,••• briefly,what specific purpose by ordinance and possibly basic outline of what a trust, g razed foci. rust, could look like. cry itw would be isdetermined •rrinp possibly requiring state legislation. But at least, organized have not oordinance, hesmembe s to be named by the City Commission, with some by pro you, is that work of element of the recommendation for ndationrofethetoutline younhaveterest, in fronttc. of y e principal they old contract the rshouldon one trustyeawouldby-ye r accomplished oichrr through rafunction you Cdecided ethey a gout -by -year relatesbass to carry eration cnint as it fecific marinas. AYou the nd upwitha contract for eachfacility and maintenance of p that you wanted them to handle. a ez. I view this Now, very briefly that is the concept that is j cluded,innot is pap than the pro- ps a reasonable yu alternative. r. Athis It to .skid me you have in front of you. It is a reasonable, fourth alternative for pro- posals that to the point where you you to look at, and I cast it in that light, up City follow, for definitive hic recommendation m so farihave of donewith . What I course yoto the u shouldiu, thatfoin something which youproposals you have heard, there is a fourth alternative that you to consider, and that is approaching the management addition to the three props as we have of think is reasonableefaiiesfor the employment of a trust organized your marine facilities through outlined in this page. spates Mrs. Gordon: Excuse me. Is that similar to the public health trust which op Jackson Memorial Hospital? provisions. It is the same spirit but very many different p spirit or. Grassie: Ita has purpose, in a different context. It has the saw p organized for a drfse`Letq ite different. Out really the terms Mrs. Gordon: I realize that. Could we assume has bad in that the successful operation that the operation of a health facility,might not be a parallel that body ate? that we could anticip secure analogy. I suggest to you that that is not a very secure ear haveoabout doo. tot i: i at mould atransfer any ideas of success that y think that y the Public Health !rust to another organization. It could cork, but I think for completely independent reasons. rule you Mayor Terre: Let as ask you this question with regards to the trust, also recommend that do that with our two golf courses? Mr. Grassie: It is a possibility. Mayor Terre: sow about the Orange Bowl end Maxine Stadium and the baseball Stadium? 01.a 2 1g78 38 e 1• Mt. Gtaasie: If you wish. Mayor pette: How about the police departimeht4 Mr. Grassie: There ate communities in the United States that operate police departments on contract, Mayor. Mayor Terre: Well, we are not too far sway from what you want. Huh? Except that the Trust Department becomes Metropolitan Dade County. Mrs. Gordon: May I just mention something to the Manenger, because I have k whit deliveredis,. a memorandum trym him this ou composed summary, orgto theyou have deliveredports it Authority which is his,...I l assume f that y with your cover letter from you Mr. Grassie, about a Sports Authority, fa elitism in fact is designed to give control over all developments of spr orts facilities tin here in this area. That isn't too far afield aaccording otal ato ohyouty. there. In fact that was even more so. That g Mr. Grassie: 1 hope it is not necessary for me to make this clarification, but let me get it on the record anyway. In a staff capacity, you asked me to produce a lot of documents, a lot of things, which I presume are basic to your discussion and are intended to be useful to you as you consider alternatives. The fact that I produced an outline for the Sports Resources Committee at their request, and atthe request ofthee foChr airp nth n who happens to be Commissioner ty Pd�enotif we mean that I am endorsing it or even if I think thata this community, perform a task for you as a it is a good idea. I have been asked to member of that committee, and I am doing it. Mrs. Gordon: I thought that was a creation that you,..... Mr. Grassie: It is not my recommendation. I am simply trying to be useful to the Committee and I am presenting this to you in that sane spirit. I am saying to you that I think it has the same kind of merit as the proposals in front of you have. in the sense that you ought to consider it as a fourth alternative. That is all. Mayor Ferre:I think that is a valid statement. I would like,...Mr. Dixon and those of you that are interested intthis, akelogicatlittle was gout called this. en ed ad hoc logic. college w comes Now Iill give you remember, wyou you a good example of ad hoc logic. The Miami ad Herald comes up with an editorial several weeks ago, that since the Fire Chief isthat this would be a good time to turn over the City of Miami Fire De artment ad hoc logic, the continuation of addphcmlot toc, isreversestopeerDade andCant say,a'', Chief Bullock is also retiring. He hoc logic, retirement to nt thatre tonced innt should announced his retirement before Chief DonHickman. He re announced February• ceder that merged thenintothe Metropolitan Dade Department because the Chief of Mey be retired ired the City The difference is, that whereas theo Metro of iam beforeasthea Chief of department. the maximum that theynreachh City of Miami has a class 1 fire department► Metropolitan Dade County has a class 9 fire department,...class 9 to class 4 is because they are judged by districts. Now. I remember a lesson in government, taught to me by somebody who is and a sat firsnext to1 Andy 7 years ago, on the staff of Metro, as fatter of fact. When i first. 16 or 17 years •B . vent to my first civic government thing and they got me oe Cam about creating andt i forget who the other rity fellow was going to be the answer to all of our, ---- a otnsportacioe authority. who is in goverment now, anvernment I got all excited, . vai all foant ito. Thisllady lobo She said to me, the way B a very watt person. said I vast to talk to steers is a prober in this community, functions, is that people who are elected,..there very serious problem. The muoit , I Will never forget this...•this community ace. the Miami Herald and people thata is that deep down inside, the Chamber of Comore are involved in setting the patterns, basically do not believe in the democratic process. They don't believe that elected officials bad thet capacitto r if integrity and therefore you will and I history her, to fake decisions. and in the future remember me.somebody is and Metropolitan mill fDade tCeve, time there is an important decision, soar than you rile find that every Then me will transfer the Ping to coal up and say, let's create an authority. and of course responsibility from the elected officials to selected officials. 'K3' ""`.r.: ti:& " .else' egarding Creation of Authorities Regarding Public vs. Private Sector Responsibilities El11111Mpimi 11 EF Es: 1b thii 'Articular cage. the Manager is going to be the one that is going t6 tetoamend. Dixon: Mr. Mayor there is a big difference..You have said to the Manager• iti February of 1977, Mr. Manager, lease these facilities.O a .P utit eyeu facilities out for proposal for leasing. Okay. have said, I want to turn these over to someone else. I didn't come up and say let's create a trust before you have thrust to say, let's do something. Let's turn it over to someone else s control. Mayor Terre: That's a valid point Mr. Dixon. I can't argue with that. Mr. Dixon: You brought it up. We are saying there is an alternative in which the public can participate. Mayor Ferre: I can't agrue with that. e Mr. Dixon: I have been here in front of you umincle efMarrch.1ow teinks cthebCoitnitteed that reviewed the propsals is a shinings in the waterfront for the betterment of the City. I don't understand what you are afraid of. Mayor Terre: Look, let me tell you something. I serve on the Downtown Development Authority. Ray Goode and Alva Chapman recently made a big to-do about that Authority. Need I ask,...let me about ..the MiamiHerald Parking that are continually discussing, Neat do theythinkthe Mr. Dixon: I am not asking for an authority. I am asking for a Trust. Mayor Ferre: What happened to the Air Port Authority when it existed? What was one of the first things that Ray Goode did the moment he became Mananger. He said this airport belongs to Metropolitan Dade County. We cannot shirk that responsibility. The Commission has to assume that. We cannot place that tto derJan Authority.II appen sorry. As a matter of govermental philosophy, yourp to believe that that's what people get elected forehand d that's thet youuy elector the public officials for, 1s to run this community, County. I am philosophically against,..I am philosophically against, the creation of Authorities to do our job for us. Mr. Dixon: I agree, let's cancel the proposal for leasing. That's what you are saying. But you are leasing it out. Mayor Terre: What we are talking about and I don't think there is a ccontradiction is, that when you are talking about recreational facilities such sucthaessgol sense such as marinas, such as things that are not public -purpose that a garbage collection department, a sanitation a police depart- ment, are department best run by the ment, a fire department, something like marinas in my opinionestic sector private sector. As a matter of fact I really don't think that the p should even get involved in it, other than to create these facilities, and then let the private sector take them from there. And so it is my personal opinion, that in luxury or recreational facilities, that if you can involve the private sector you are much better off. ttr. Dixon: An excellent opinion. I think there's a lot of people in the room that also have opinions and since it is a public discussion for the proposal for the Trust, could we ask for some comments from them? Mayor Terre: We've got till 7 o'clock. Mr. Dixon: Is there anyne that woin the od like to speak relative to the Trust? I see there's apse people Mayor Terre: Sure, go right ahead. Mrs. Joanne Bolhauaer: I am still concerned about what happened to the public meeting on the last item. Mayor Terre: The public meeting will be continued to another public meeting, which we will decide what day, in a little while. You are in order, go ahead and express your opinion, if you want. ,JM 92 1978 Mta. EolhauSet: My point ia, I would like to be bf the Coconut Grove Civic Board about item 21 ,to find out..... are ve going to continue that? Mayor Ferre: No. I told Dan Paul and the others that they could go home if they wanted... Mrs. Holhauser: I understand that. able to expteaa the opinibn in some order. I am Still waiting that wanted to speak on item 21 Mayor Ferre: ..we could continue. What happened was, that Mr. Dixon wanted Item 22 heard, Mrs. Gordon insisted that it be heard before we discuss further on Item 21. we agreed to do that, and that's where we are at now. Mrs. Holhauser: All I am getting at Mr. Ferre is that the person who was going to discuss the Trust went home because we understood that you all were going to be concluding. There is another hearing coming up at 7. Mayor Ferre: Yes, there will be. We are not going to conclude on this tonight. You are right. Mrs. Holhauser: But 1 want to reserve the fact that we would like to have some comment on the Trust. Mayor Ferre: You will have the right to comment on both. Mrs. Holhauser: Thank you. Mayor Ferre: Anybody else. Why don't you come to the microphone. You have to identify yourself. Joanne you need to do that too. Would you do that please? Hrs. Joanne Holhauser: I am sorry. I am Joanne Holhauser, I live at 4230 Ingraham Highway, in Coconut Grove. I am president of the Coconut Grove Civic Club. Mayor Ferre: If you want to the microphone is yours. Mrs. Marilyn Reed: My name is Haryily Reed and I here today representing the Environmental Organizations, state-wide and in this community, and I feel we should have some input not only on 21 but 22. I would like a date set so that we can get our prople down here. We waited all afternoon. We certainly have tone input on this. We are very disturbed about this whole proposition and I think we should be heard from. Mayor Ferre: Fine. You will have that opportunity. Mrs. Reed: Would you please set a date and then we will,.... Mayor Ferre: I tried to do that before but we wanted to get to this point, and I think we are here now. Are you ready to set a date now? Mrs. Gordon: We have heard enough..All we can bear tonight. I suggest we do have that special meeting, that we give it plenty of airing and that we combine the three proposals and the trust proposal which,I consider a proposal. into one afternoon or evening bearing and then come to a conclusion. Mayor Ferre: Look at your calendars and see be gone Plummer? Mrs. Gordon: You are talking about July? I something sooner than that? Mayor Ferre: We are talking about the month of June. what dates....what dates will you thought you were trying to schedule of July. We are now on the 22nd Mr. Gr thought ought it: With the te kindof this ofeanalysis that t youhave suggested Commissioner, Mayor Terre: 27th of what? Mr. Crassie: Or if you want Ikon a special day. end a separate day, then ve ought to do it,.. JUN. 22 line yi ii ■iiinii iuuiiuuii II mm MM MM E*yot tette: how about the 26th/ Does anybody have a problem with 2 b'tlock July 26th? Mee. Gordon: Too far ahead. Mt. Plummer: i would start it at 9 o'clock in the morning and hope we would be finished by 1 o'clock. If we don't, we can continue on. Mrs. Gordon: I cannot have an afternoon meeting on that day of the 26th. 1 a commitment I cannot break. Mayor Ferre: Can ve have it in the morning? Mrs. Gordon: You know our meetings never end when they are supposed to. Mayor Ferre: How about on the 28th? Mrs. Gordon: How about the 25th? Hr. Plummer: How about the 28th? That sounds good. I have no objections to an evening meeting except for the fact that, Mrs. Gordon: The 28th is a Friday, and the Board of Trustees has scheduled the money managers down on that day. Mayor Ferre: How about the 13th? Hr. Plummet: i1r. Grassie, are you scheduling the Zoning in July on the 13th or the 27t1" Mr. Grassie: On the 27th Commissioner. Mayor Terre: Okay. Where are we? We have the morning of the 26th. How about the 13th or the 12th or the llth? Mrs. Gordon: How about the llth? Mr. Plummer: The llth is fine with me. Mayor Ferre: The 12th is out, and the 13th. Mrs. Gordon: The llth? Mayor Ferre: No, I can't be here the llth. How about the 25th? Mr. Al Sokolsky: Mr. Mayor, you asked people to express themselves for or against the trust. I would like to know Mr. Dixon, have you concluded your presentation? Mr. Dixon: I don't think there is any further thing obviously the Commission desires to have further diacussioo,a future date. Mr. Sokolsky: So your presentation will be made at a future date? Mr. Dixon: Hopefully they will place it on the agenda so that it would be concurrent with the proposals for leasing. Mr. Sokolsky: I thought the purpose was for this Commission to thoroughly hear item 22 now. Mayor Ferre: The pout is Al that we don't have time, because we have a 7 o'clock I hinnk Mr which is in IS right about that, sthisall isthese alternativeare tied together, and Mr. Sokolsky: Then there's no need for Mr. Dixon to speak for or against any items at the present time. Mr. Dixon: I am sure your comments are valued —let's reserve and bold them. Mrs. Gordon: Did somebody say they couldn't sake it on the 25th? JUN. 2 2 1978 .v} . r ru,. ,: ;::t�,^�;'rrs`xa :•'S'anu,.art';r-e' 'N"- ,04,ViciotiaPuerof have ■IIIIIIIIIIIIuI■IIIIIIIIIIIIIIIIIIII■III HAW Pettit The, I ain't *Ake it an the /5th. Mtn. Gordon; Bow about the 28th? I can be here on the 26 or 28th. of the Board of Trustees to Can you arrange with the secretary money manangers on the 28th, then we can have the Commission: We will reschedule that for you Commissioner. Yes. d Okay. I assuming it is daytime meet 8 Mrs, Gordon: Mayor Terre: Mrs. Gordon: not have the Mr. Grassie: in , It's a Friday. Di: There are many people who would be very interested withsome in t, on: during the day. That's unfortunate. I am sure input, that would be working meeting, Mrs. Gordon What hour in the even time after 5:30, if it is an eve 26th. I would then be available anytime Mr.Dixon: Is it an evening meeting on the 28th? Or 26th is okay. 1 you what, I don't mind right with e. 11l tell again in the The 26thrg andlbreing up at noon and then meeting B the mooring you understand that. i maybe then we could do it onnng e Mrs. Gordon: Mayor Ferret starting in evening. Mr. Dixon: 0n the 26th? to take 4 or 5 hours, Mayor Ferre: We start at 9 and go to 12. This is going then we will start up again at 7. Mrs Gordon: That's real problem for me. Mayor Ferre: You want to start, say at 6 o'clock? less you go back again to the 28th sir and start at 2 in the Mrs. Goron; Unon to 4 in the afternoon. afternoon and go Mayor Ferre: I can't do that. 1 cando the 26th. seriously from what Mr. Plummer: May I make this suggestion. I doubt very that we are going to go to a decision inaone ad and meeting.the consensus of this, why don't we god I have heard here today, yis realizing that there probably Okay. le in fact, of the 26th, schedule a meeting for the eve�lled. will have to be a 3rd meeting Mayor Ferret pine. timber. Mrs. Gordon: Then the nett meeting won't be until Sep give the people who work during the day the leastlet's say 4 boors, and voice their opinions• op nunsPlummty But ate during, , opportunity to come during, the 26th Mr. Mayor just for information, two of Committee our Committee Chairman,.. ' ' Dimon, apparently have conflict. Mr. Grasaie: On members, do we have Mts. Gordon: I wonder why we have to wait over a full month. Why to wait that long Mr. Manna8eT. Ztr. Din: We certainly can meet before that date. I don't knout ready. but goodness, Mts. Gordon:You said you can't get ��hs haven't got. what else you have to get ready that ofJuly for the 12th of July? If you don't do it by the Plu t 12th Mt. Do you wanBose, thee to tryn that tprecludes se until the 24th . e 12. I a ready for the lath. Mrs. Gordon: i am ready for JJ 2 2 1978 1043 411111111111116.. ss•MEM s • 1 M4yot Ferre: No. but he is not. Mr. Plummer: You are not doing the work. He is. Mrs. Gordon: What do you want him to do? Mayor Ferre: Let me say this for a moment, Rose. Please. Here are the series of problems,....let me know. Here's the problem.The problem is thachthe he Maanang r says he is ntpostpone. Itoisrandoffic al tr peay by the 12th•forvat¢heer city,*nd leaving hefor isatrip leaving on the 13th and won't be back,.... Mr. Plummer: No, sir, I am leaving on the 14th and returning on the 24th. Mayor Perre: That means that if you don't have it before the 12th, you can't have it until after the 24th. So the first day you can have it is the 25th. Now, the problem is that the 26th, Dixon and Iaconis are going to be gone. Mr. Iaconis: Both Mr. Dixon and myself are instructors in a course,..different courses ,and we teach on that evening. I apologize to bring that to your attention. Mayor Terre: I'll give you another alternative. Mrs. Gordon: What about the 25th, evening? Mayor Ferre: I have no problem with the 25th. Mr. Iaconis: The 25th? The evening of the 25th is fine. Mayor Ferre: I have no problem with the evening of the 25th. Mrs. Gordon: I haven't either. I could come. Mayor Ferre: Does anybody have a problem with the evening of the 25th? Mr.Plummer: At this point I don't know of anything I have. Mayer Ferre: Manolo? I can't do that,....that's Puerto Rico Day at the Auditorium. That is a standing commitment I have every year. Mrs. Gordon: What about the 24th,...it's a Monday evening. Mayor Ferre: That's when Plummer gets back. Mr. Plummer: No. Mx. Dixon: The afternoon of the 28th? *Friday? Afternoon? Mr. Plummer: They want an evening meeting. Mr. Dixon: If we start late, it will not become a 9 or 10 o'clock Friday night session, if ve start earlier that day. Mayor Ferre: Okay. I can rearrange that. The 28th is something I can change. I can meet late afternoon the 28th if you want. Say 'clock?ck? ecsithattacceptable to everybody now? That's Friday the 28th? Anybody A11 right. Mr. Sokolsky: Yea I do. Mayor Terre: I am real sorry. psychologically putting people in the Mt. 6okolsky: limit • stinute. I think pay of to be continued to Commission room at 5 o'clock on Triday the 28th. is going another date again. and I think this has to be drawn to a concrtantlusion. other think that, ubly eetingewhat is coming before, shouuldis i> to havepthe night of the 12th. public meeting Mayor Terre: The Maaanger says be can't be ready by that time. Iaconis says it is too early, so ve will sleet ladies and gentlemen....this public heati g28th is oov continued on both items sad 21 and 22. until 5 P.M. on Friday, of July. See you then. William It Hou h & to. OLD PORT COVE 1212 D.S. HIGHWAY ONE P.O. BOX 14095 NORTH PALM BEACH, FLORIDA 33408 (303) 626.3911 Mr. Joseph Grassie City Manager City of Miami 3500 Pan American Drive Miami, FL 33133 Dear Mr. Grassie: As per your request, William R. Hough itenance,. has rredevelopmenthe trandsexpansion for the leasing, management, operation, man of the Dinner Key Marina and the Miamastand ready to makelatrecommendation analysis of each of the proposals and to the City of Miami. ene ral The Proposal Specifications preparedas byiicantyof variaince1inere plannedly capital in scope. As a result, there was 9nf expenditures ranging from $3,000,000 at the low end to $7,500,000 at the high P end. In addition, the original specifications called for landside improve- ments ants and as a result, some of the Praterachangedeto excludefor the cthetlands�de of restaurants and hotels. Plans were 1 development. While a proposal comparison was complicated by dtueingfference in the planned caW nl 500-slip an analysis was marina. and $4d.in the linearpfoot, 500-slip and 200-mooring mrisi;p rentalrates used in the hypo- theticalth marina were 13t per foot perday mooring rental. The main objective ofthe oaane s ysis waswhile to identifY ththe one t proposal that minimized costs to the boat ofi to the City of Miami. The income to the City, as stated in each proposalh tacaanalyiedd .onIthe basis of the income and expense projections of hthathypwould yield the greatest way, we were able to identify the proposal rrofit potential to the City. Since one of the proposals included a tax-free revenue bond issue, a bond issue was construcdforvttheahlpoethetical marinau showing size of issue, issue expenses andproceeds The hypothetical bond issue was included iinCour analysis determine the feasibility of such a proposal. Since the in one proposal, pro- jected gross revenues in two proposalsd net andenetsrevenue figure. it was necessary to project a EXHIBIT B JOE 13 WISE IESIDENT MANAGER >RIIYMOND V. CONDON STATE COUNTY AND MUNICIPAL BONDS MEMO ti • Bs olt Ca. Mr. Joseph Grassie City of Miami July 21, 1978 Page Two In addition, each proposal was analyzed on the basis of managerial expertise, experience in marina operation and the feasibility of the proposal in terms of environmental impact and public reaction. The financial reports presented would indicate that the firms were formed specifically for this project or are small, subsidiary operations. The financial statements and asset size did not accommodate standard fin�nnotltheanalysis. couldBased obtainthe financingeforted, there is a question of whether o the projects proposed on their own behalf. DINNER KEY MARINA ANALYSIS William R. Hough & Co. has been asked to review proposals submitted by Biscayne Recreation Development Company, Dinner Key Marina, Inc., and Ecclestone Management Co. d/b/a Florida Realty Building Company. Biscayne Recreation Development Company The firm is comprised of individuals with prior marina experience. Biscayne Recreation Development Company has proposed to complete 130 additional slips within two years and a total of 930 slips to be completed within six years. The lease request is 40 Yrina operation, the the Cityosed wouldincome receiveh$186e179and on using the hypothetical ma P a gross revenue of $1,241,191. Ecclestone Management Company d/b/a Florida Realty Building Company While the firm's expertise is in the condominium -real estate development area, they have been a successful developer of a marina. Ecclestone Management Company proposes to construct 149 additional slips and 200 paying moorings. They propose to complete seven new piers within a three- year period. The leaseimears hoo heticalear i Basedons. 30 marina on the proposed income schedulendusingthehyp operation, the City would receive $212,357 on a gross revenue of $1,241,191. Dinner Key Marina The management of the firm is comprised of an experienced marina operator and individuals with a solid background in finance. Dinner Key Marina, Inc. proposed to construct approximately seven new piers within three years. The new piers will increase the total number ofhsslips to oa527s andferethere will be four mooring areas with 375 paying moors. -year management contract in lieu of a lease. Based on the proposed income schedule and using the hypothetical marina operation, the City would receive $244,468 on a gross revenue of $1,241,191. r Ili�m►$Idax�t!'i W. Joseph Grassie City of Miami July 21, 1978 Page Three Recommendation On the basis of our analysis, Dinner Key Marina, Inc. has submitted a 11 11 proposal that could provide the greatest potential return to the City im at a favorable (below competition) rate to the boat owners. William mi R. Hough & Co. recommends that the City enter into serious negotiations ma with Dinner Key Marina, Inc. MIAMARINA PROPOSALS FOR LEASING To summarize this project, we have assumed that the intention would be to fully rent, on a long-term basis, the slips. This is not now the case. At this time, we understand that the present occupancy runs about 78%. We are told there would be no problem in accomplishing full occupancy. Under the present operation, it is anticipated that the Marina will annually gross $412,262 vs. expenditures of $411,000. This is on a per foot per day basis at a rate of 13t live -aboard, 8C non live -aboard, 20t transient, and commercial dockage at varying rates. Ecclestone Management Co. and New World Marina, Inc. proposals are silent on rates. Biscayne Recreation and Development Company specifies that rates shall be 25t for live-aboards, 10C for non live-aboards and varying rates for commercial. It is estimated that full occupancy at proposed and present rates would produce the following: 1,320' x $.10 x 360 = $ 47,520 9,977' x $.15 x 360 = $538,758 Total $536,278 Maximum potential income at full occupancy of live-aboards and non live-aboards: 1,320' x $.08 x 360 = $ 38,016 9,977' x $.13 x 360 = $466,924 Total $504,939 The City's projected costs of operating the Miamarina are as follows: Salaries and Wages Fringe Other Line Items Capital & Other Improvements Total Operating Cost $161,000 $ 63,000 $182,000 $ 5,000 $411,000 n. itiLCa Plr. Joseph Grassie City of Miami July 21, 1978 Page Four pledge, Biscayne guarantees aminimum of f5$1504000 or plus 25,5% of the financial is a minimum of gross receipts. Ecclestone's pledge of gross receipts on $300,000 to $400,000 and 30%mum on gros500 corei Its over $400,000. New World Marinas pledge is a ross receipts up to $750,000 and 15% between $750,000 and $1,000,000 an gd 20% over $1,000,000. Under th e new proposed rates, the gross receipts on full occupancy would be $586,278. On this basis of estimated income, the City would receive from the proposers the following: $184,677 Biscayne (@ 31.5%) Ecclestone ($50,000) plus (25% lus (of 30% of 30%of$186,278=$55,883) $130,883 New World (10.5% of $586,278) $ 61,559 Obviously, Biscayne's proposal is of the mortnadvanattareducetheeveCity. of However, unless Biscayne can overate the expense. there will be a problem in meeting the Citv's payment from Profits. na The rec ommendations for a wave barrier and additio 3l paavrking facilities now.) should be seriously heeded. (There are only y Cityof Miami in your nego- tiations R. Hough & Co. is ready to assist the proose to meet with the City aitthe successful with the successful proposer(s).iarkIn the eventiveof a u andasfe s uccessful proposer(s) in a workshop session to arrive at a mutually satisfactory solution to the unresolved problems.in the structuring and tax- free revenue bond issue, we will assist the City sale of the bonds. RVC/js Enclosures (Exhibits A,B,C,D) Respectfully submitted, WILLIAM R. HOUGH & CO. • ��e!1C/C w Raymond V. Condon C ■ EXHIBIT A Ho v, DINNER KEY MARINA REVENUE AND EXPENSE PROJECTION (Figuring fiscal year 1980-81, the first year, 500 slips and 200 moorings are in place @ 13t per fobt per day for slips and $40.00 per month for moorings,) Revenues Slips (revenue in linear feet) Moorings Seminole Subtotal Interest on Reserve & R&R Funds ($633,510 @ 7 1/2% TOTAL INCOME Expenses Operating & Maintenance currently at $419,704, plus an inflation rate of 5.25% which in 2 years raises this by 10.5% $1,133,191 96,000 12,000 $1,241,191 47,513 $1,288,704 $ 463,772 TOTAL EXPENSES $ 463,772 NET REVENUES $ 824,932 * Less debt service interest only 1979 and 1980. $ (320,625) Available for City and Operator, taxes, mooring 504,307 and mole maintenance and unforseen expenses. $ * Debt service rises to an average of $383,510 for years 1981 to 2006 where principal payments begin $ 383,510) Available for City and Operator, taxes and mooring and unforseen expenses. MOM M EXHIBIT B GINNER KEY MARINA REVENUE BOND ISSUE Tile size of the revenue bond issue contemplates paying for construction on an arbitrary set of facilities being 22,500 feet of docks providing 500 Slips and 200 moorings and recommended improvements to the water side portion of the Seminole Landing structure. In addition, rates will be s7ufficient to pay interest during the two-year construction period so that no interest is provided for the construction period. A Debt Service Reserve of $383,510 and a Renewal and Replacement Reserve of $250,000 is capitalized and bonds are sold at a 4-point discount. A provision is made for engineering and issuance costs. Bonds would mature in 1981 through 2006, comprising a bond stmentsowhen�we5know�thehpayoutuschedule of theld be uced by constuctithincome on invest tments funds. Construction 500 Slips at $6,500 including contingencies $3,50,DOb (Average 45' slips--22,500 linear feet) 200 Moorings at $500 (This 200 was selected because it is felt that this number could be put in place without much approval of the authorities. 100,000 A cost of $500 per mooring is assured.) These figures include Dockmaster's office improvements Seminole Improvements (Does not include improvements to buildings or walkways or landscaping) No parking is included in this figure. Total Construction Debt Service Reserve 383,510 Renewal & Replacement Fund 250,000 Bond Discount--4 points 171,000 Expenses of Issuance _ 41,590 Subtotal $ 846,100 GRAND TOTAL (Size of Bond Issue) $4,275,000 Less Income on Investment of Funds `x°'_ Unknown II 11111111001 $ 78,900 $3,428,900 $824,932 -47,515 $777,417 -383,510 $393,907 $196,953 EXHIBIT C 1N CSUMOF MARYON F ET ROFIT OF TONNER THEMKEY MARINA, AFTER PAY- MENT OF DEBT SERVICE. Net Revenues $824,g32 Less Interest Earned on City Reserve Punds 64745.15 $777,417 Less Debt Service Interest Only 1979-80 -320,625 $456,792 Operator's Share is 50% of Above $228,396 City's Share is $228,396 Plus Interest $275,911 on Reserve Funds of $47,515 With Bonds Maturing 1981-2003, Debt Service increases to an average of $383,510 Net Revenues Less Interest on City's Reserve Funds Less Debt Service 50% of Above is Operator's Share City's Share is $196,953 Plus $47,515 Interest $244,468 on City's Reserve Funds This Proposal also Guarantees a Minimum of $180,000 Annually. 1 ■ • EXHIBIT o ESTIMATED INCOME O THE CITY OP MIAMI 1980i1981 Gross Revenue $1,241,191 $212,357 Income From Ecclestone 1 Income From Eisce ne $186,179 60-51. Income From Dinner Ke 3 $244,468 (1) Income to the City from EclPr000alland is based on grossnc. is based on the nrevenues schedule as provided in thePs projected for 1981 in our hypothetical marina. (2) Income to the City from Biscanaeissbased based onngross irevenueshprojected as provided in the Proposal a for 1981 on our hypothetical marina. (3) Income to the City from Dinner Key Marina, Inc. is based on the income schedule as provided inthe Proposal andld ismbased on net income as projected for 1981 in our 111112,,, 111111111 Mill I i 1 ■11 1 11111 I1II 1I 1 11 11 1 EXHIBIT I - Shows the Income to the City that Proposer offers with any given Revenue Base FroPoser Proposal 1 Biscayne Recreational Development Company Proposal 5 Ecclestone Management of Florida Realty Bldg. Co. Proposal 8 New World Marinas, Inc. Formula 300000 350000 450000' 11111111 1111111■ 1 11111111 IIII1111 1IiII1111 I1II■I MNI1IIII INFORMATION BASE REVENUE TO THE MT- M2AHARI11A`- REVENUE BASES LISTED 500000 $150,000 or 31.5% $150,000 5150,000 $150,000S150,000 $150,000 50,000 + 25% of Gross Rental In- come 300,000 - 400,000. 30% of gross rental income over 400,000. 40,500 41,500 62,500, 75,000 .90,000 105,000' 550000 600000 $157,500 5173,250 S189'.000= 120.000 135,000 150,000 5T,i7507 II lam 63!.000r' 1110 PROPOSER BIVELYNE PMENTCCEMPINY Pau Wa ker. President James Sprague, Vice -President ,CLESTO"IE MANAGE- MENT COMPANY E.L. Ecc estone, Pre . .'ant Bob Nori'c. Mice Presiaent COMPARATIVE OVERVIEW OF THE THREE MIAMARINA PROPOSALS AS SUBMITTED IN WRITING "MARINA PROPOSAL" REVIEW COMMITTEE �N MARCH 31, 1- 9?8 AND RECOMMENDED BY THE WAVE BARRIER Not mentioned in: proposal. NEW WORLD MARI NINC G adys ub in, President Dorothy Dubbin. Secretary/Treasurer Irvin Steohang, Administrator $.15 per ft/day live -aboard; $.10 per ft/day non- liveaboard; $90.00 charter fishing vessel; $185.00 drift fishing vessel; $2.20 seat/ month -sightseeing; $95.00 charter boat sail $120.00 charter at piers D.E.F.G. Not mentioned in proposal. Not mentioned in proposal. HYSICAL IMPROVEMENT Additional equip- ment and utility provisions. None mentioned specifically. OTHER IMPROVEMENTS FINANCIAL PLEDGE Additional land- scaping and ex- tensive clean-up of the area. Fuel dock, ship stores. laundry. In- crease N transient and permanent boat slips. Remodel and enlarge dock office. Provide pump -out service for newly Coast Guard required marina sanitation services. Min: $150,000 or 31.5% of gross receipts. Beautification inncau- ding painting and continual basin clean ing operation. More security. Marine shuttle service to otso serve downtown. Island and Dade. Par- ticipation in special events and celebrat- ions. Min: $50 ,000 Plus: 25% gross rental income $300,000-400.000 Plus: 30% gross rental income over $400,000. RATES PROPOSED LENGTH OF LEASE Min: $40,500 or 10.5% of gross re- ceipts up to $750,000; 15% be- tween 1750.000 and $1,000,000; 20% over $1,000,000. 30 years. n OTHER Iti iIIIJIii Extensive promotion and advertising of marina. 30 years. Con- ditions: City pro- vides parking with out meters. City maintain parking areas. City to provide insurance other than liabil- ity. IIN None mentioned. specifically. 1 Improve and enlarg fishing and charte boat services. En courage civic, edui cational and youth groups to utilize the marina facilit 1 --i, IIIIII �iii i 1lillilll 111111111 ■ hill !i liI� ll l i� 1 i 1 111 COMPARATIVE OVERVIEW OF THE THREE DINNER KEY MARINA PROPOSALS AS SUBMITTED IN WRITING ON MARCH 31, 1978 AND RECOMMENDED BY THE "MARINA PROPOSAL" REVIEW COMMITTEE. SISCATME RECREATION BEYELOIIIEMT COVAMI LOCATED IN maw. FIA PAIR MALRER-PRESIDENT JA NES SPRADIE-VICE P. DOWER -VET MUMA. INC. LOCATED IN MIAMI. FLA. SPENCER N. AEREDIIN-PR. J. RICl*lb SELL -SEC. OIRECIONS 4 OFFICERS J. 4100.10 SELL J. ROBERT CARTER VIER L. MMRIOW s1EE1JB S.1ERE011N ECCLESTOBE -M 1. CO. 444ILA. SLALTT 51D6. M0. E. 1. ECCLLSTONE *RESIDENT i SOLE OIBIER LOCATED IN TE. O. 4EAfII. %FEA. ERMINE IIN'KT St IPS ITO ADDED MITNIN 2 TEARS 100 ADDED WITHIN R TEARS TOT. NM SLIPS: sn PRESENT TOTAL 7M1 NAND TOTAL 1300 TSB FORE SLIPS IMAM FRED:1MA TOTAL - 627 (AIL SEN SLIPS). IRS MORE SLIPS TAMPRESOITIT 10TA1 - S20 (ALL R[M SLIPS). SWIIME IMPACT HORINGS STUD/ INKS FOR FUINR[ MOWN 4 SCORING MIS 315 PAVING 200 MATING MOORS MARINE IMPACT PIERS PIER 1 10 BECOIE TAUSE- NAT AFTER PERMITS TO DEVELOP ISLAND. PIER 1 10 BE NIBUILT. PIER 2 E5TLNS1YE RECMS1RUC110N. ALL PIERS TO BE REPAIRED AS NECESSARY. Su WALL REPAIR AND REPLACEMENT Of LOST PILINGS. 7 NEW PIERS 10 BE W ILT NUM 7 TEARS. 7 NEW PIERS TO SE WILT WIININ 3 TEAMS. MARINE IMPACT ISLAND DEYEIOMEMT CONSIRUCT CAOSENAI TO NOLL 3. PROTIOE PARKING. B00 SLIPS AND A POSSIBLE RESTAURANT. ROLE 5-PEDESTRIAN BRIDGE IRON KINNEDT PARK EITENOI4 TNNI PARK CO1(111 14110 ISLAND F1SNING PIER MOLES 2.3.4 - MILD. LIFE REFUGE A CARDER MIER PARK OM BU1- S10E.EAS1 0f CRAWL KEY (ROLE 21. A NAB11A1 BNEAWAI(A ID BE WILT FROM PILING REMAINS Of OLD PIERS. NOTE I EKIUISION OF PEA - COCA PARK 1NROU6N ACM -BRIDGE 10 PROVIDE SWIMMING. NNE PROPOSED PAUAMT STSIIN 10 SE EK1EN- 0l) 10 011E OF THE OFF-SMNIE ISLANDS. SIRE BR1061. PAIN- WAIS 6 PICNIC AREAS BN NNE ISLAND AS NECl55AAT. TANS 'MAMMA] ON NOTE S. CIIT 10 COIIIINUE WIMP Of ALL MOLES. iiiiii•11111iu•i111111i1• MARINE 1NPACT LINEAR (LEI 5200' ADDED WITHIN 2 TEARS. 36.200' A]OED MINIM 6 TEARS. T01A1 FEET ADDED - 40.400' PRESENT F EXISTING - 1K.56S' GRAND 101A1-54.%6'. 22.010' ALL NEAR 101A1 7.505' met 1WM PRESENT 1011LL. 24.903' All NEW. 101A1 10.33E PORE IMAM PAESEMI 101AL. MARINE IMPACT 01411 CREATE ADVISOR? BOARD PUBLISH 01-MONTNLI IM- IMMATION 1ULIEf1N. REPLACE ENTIRE (R1ST1M6 ELECTRICAL SYSTEM W(A1NEI 114001411011 MO CWM1 NOON AT DOCONSIE1S. COPIKRE1A. BOATS - SIGHTSEEING A SHUTTLE 10 AND MON WORK. LANDSCAPED WA11WA1 AND PAIN ALONG NAAIMA SNONELINE. CONNECT EXISTING AIM ►A1NS FROM PARK 10 PARK. IANOSIDE IMPACT SEM1MO.E 2 SNOUT BUILDING LONER F100M 10 SE BAIT A TACKLE SN0►. 2n0 FL00R TO RE FINE RESTAURANT. ALL DOCKS TO 1E REMOVED MO BEHACEO ST NEN PIERS. REMOVE EXISTING SLOG. REPLACE WITH B0 SEAT SEAFOOD RESTAUAMI RIP RAP 10 SE BUILT AND SORT RAPS. PRESENT FACILITIES Ep1ARDED AND A SMACK SMACK 10 k BUILT. I-1 11111 LEASE If ANT AND CONDITIONS If ANT. 40 TEAR LEASE 70 TEAR MANAGEMENT CONTMC1 30 TEAR LEASE WIN 2-10 IEAN OPTIONS CONDITIONS: (1) CITY VIDES PARKING STALLS. BOAT SHOW O16H1 10 SO SLIPS (7) CITE REAOVATE ES SOONERS (4) CM Lfs IM Af11E4 IIO IMPROVEMIE11S AT PROPOSES 111111111 _moo; v�o - _ «04 oD0 yso, 000 500, Dot) a 00, 00 0, 000 zoo, 000 iso, 000 m 0.0,000 Ev -,o - -o- - es-- o 1 Mayor and Members of the City Commission Joseph R. Grassi City Manager C1tY OF MIAMI. FLORIDA INtEtti OPPIct MEMORANDUM bAtE: SUEIJECT: Ar6tAkHCEB: July 25, 1978 Marina Trost Proposal ENCLO$UAtt: FILL I have met on several occasions with Mr. Iaconis and Mr. Dixon concerning the Marina Trust. They informed me that they have had numerous meetings throughout the community to discuss the concept of a marina trust, and have presented the basic outline, which was communicated to you at the Commission Meeting of June 22, 1978. One area that presented some concern to several groups was the process by which people are nominated and appointed to the marina trust. It was suggested that nominations come from various groups interested in marina development and marine interests, and that the Commission would choose from these nominations. Parag'aph 3 of the attached general outline of a marina trust Iaconis been changed to reflect an alternative presented to me by Mr. and Mr. Dixon. It was also suggested that the composition of the marina trust be limited to seven voting members and three non -voting members; one each from the City Manager's Office, the Planning Department and the Public Works Department. Again, the attached outline has been changed to reflect this alternative. Mr. Iaconis and Mr. Dixon have expressed a desire to 28makf approe a ximately presenta- tion to the City Commission on the evening of July one-half hour in duration. v • r MIAMI MARINA WATERFRONT TRUST STATEMENT OF PURPOSE of such marina facilities as for Marina Waterfront Trust is be created for the purpose a A Miamirtand governing designate and facilities operating, maintaining desig the from time to time, may, from time to with Commission may, The Trust, in addition, geot i marina with the Marina Trust.Citagent in carrying out develop given time, act athe City'o operations. The Trust would be marine ovealfacilitiesandomarine °fornplannted ng improvements to the h tit 's mar facilities es based responsibility comprehensive waterfront masterp and to the financin s based on a comp The masterplan would be ethubCity financing of said facilities. Board and approval by review by the Planning Advisory Commission. CREATION OF THE TRUST method for creation of a trust which cand would ld havenceeof The specificyfor opera a tion marinas to contract the tCity'sCagent in development of marinas would marinas and act al research. need further leg GOVERNING BODY consist of nine voting members and three additional The Trust shall appointed by the City Manager. groups non -voting members beo be aPP es fronmgroul the s would appointed based on recommendations from nine memberTenants Association, representing the Marine Council, Five members would be operators in the City. application for appointedgroup, and marina neral knowledge and make based nr. general appointment to the City (ALTERNATIVE) consist of seven voting members and three Fadditiour ofothenal appointed by the City Manager. The Trust shall c the City Commission based on three non -voting members tob be aPP Tenants appointed by the Marine Council, seven members would berg Ps representing in theT City. recommendations from g groups, and marina operators Association, environmental g appointed based on nominations organizations such as providedoe additional members would be aPP and by individual by various civic associations and etc., antral the bar association, Commission based on general chambers ofn commerce, appointment to the City Comm) knowledge for app i * development. * * e artist in the area of*m*r*n*s*a*d*m*sine of knowledge and XP * * * * * * * * * * * * * * * * * * * would serve as a member of the tTrust he who has a conflict interest sn ordoes with does business directly nt voting members and could Only the City Commission could soon) remove any member for cause. by-laws of operation, but at a minimum, The Trust would adopt its own y- operation, treasurerminim would meet monthly and keep records in accordance the trust members would elect a chairman, and secretary, with the Sunshine Laws. The Board would function as a Board of Directors inity carr ing olt contractual obligations between the Trust ad ld be entitled to protection from personal liability while actings within the scope of powers and duties assigned by the while with (.4 4-.► rnmmi f Sion POWERS AND DUTIES OF THE TRUST The Trust would have the power to contract and be contracted with. to sue and be sued, to hire such employees as is necessary to carry out the contractual obligations that it may enter into with the City, and to take such other actions as may be necessary to fulfill obligations that the City may, from time to time, assign or contract for. Contracts executed by the Trust or other obligations incurred by the Trust shall not be binding on the City. In the event the Trust is terminated, obligations of the Trust shall only be enforceable against the City to the extent that such obligations would have been enforceable with regard to personal property, which was in possession of the Trust and with regard to income which would have come into the possession of the Trust. The Trust shall comply with the formal bid requirements of the City of Miami and the State of Florida. The title to all real property shall continue to vest with the City of Miami; personal property required by the Trust necessary for the conduct onofactual contractualaobligationl vest with the Trust during the term The Trust shall have the power to hire and fire employees, establish personnel policies, hire an executive director and such other employees as may be necessary to fulfill contractual obligations. It is anticipated that a transition period would occur with regard to current employees of the marinas. The City could contract with the Trust for operation and maintenance and expansion of Miamarina and Dinner Key, and the Trust would establish a committee composed of representatives of the Board of Trustees, City Management, City Personnel Department, and the Department of Stadiums and Marinas. This committee would consult with marina employees and employee representatives, and would submit to the Board of Trustees and the City Commission a plan for the transfer to the Trust of all City personnel functions in relation to these designated facilities. This plan, with the recommendations of the trustees, would be submitted no later than three months following the commencement of the contract for operation of Dinner Key and/or Miamarina. Rates and Charges - The Trust would be empowered to establish rates and charges for those persons using the facilities of or receiving care or assistance from the Trust, and to collect money pursuant to such rates and charges. Rates and Charges would be based upon the formula in Chapter 50 of the City Code, dealing with marina rates. Rates representing deviations from that formula must be agreed to by the City Commission. The Trust would be able to accept gifts and to apply for Federal or State grants upon approval of the City Manager. mom mmilm EMIL NEEL MEE Wag st Wotld use such services of the City as may be desirable The v law to avoid duplication such as Planning Finance Departmentpintthetcondurt of Department and the City pstudies. The Trust would be require toanoope and wfith governmental agencies whc are concerned cooperate with other g fanning and operation of with and have responsibility for planning Miami. waterfront properties in the City FINANCIAL ADMINISTRATION OF THE MIAMI WATERFRONT TRUST year which coincides with that oThe Trust w000f Miami, and would h a copeal ate pursuant to theaofficial Cityf theb Cityt and Mimes budget amendments therCo�issionr each fiscal no later than the first , the Trust would submit to the City day of April, a budget for the next fiscal year pertaining to operating and capital expenditures, which budget would not be iapproval by the City Commission. implemented until apP budget forms The Trust budget would be prepared on official Citye reviewedgein in a format prescribed by the City Manager, manner similar to that in which other requests of other City aincorporated in the departments are reviewed, and shall beCionorporn by the Citye proposed budget submitted to the City Manager. The Trust would have the ability to spend bond proceeds in accordance with duties assigned to it by the City Commission. The Trust would have the power to purchase and manage necessary materials and supplies for the operation of marinas under contract. The Trust would have the ability to enforce through legal means any and all contractual obligations. City could appropriate any excess funds of the Trust not approved for operation or capital purposes. The City Manager would have the ability and be empowered at all ti mes to conduct administrative audits of facilitld be ies; legal opinions of the City Attorneys the Trust. required to properly maintain the contract facilities es and make any and all necessary TheTrustshall bessary improvements to such budgets and the terms facilities in accordancce with adopted City of any annualontracts DItY OF MIAMI. FLORIDA INTEROFFICE MEMORANDUM Joseph U. Grassie City Manager Richard L. Fosmoen Assistant City Manager OAS E SUBJECT JUL 2 5 MB Information Provided ty Dinner Key MarinaInd6 htrtlgtNtEs: tHdLCSUItItt: V r• E For your information, attached are three communications from Dinner Key Marina, Inc. concerning issues that have been raised relative to the proposed lease of Dinner Key Marina. Attached are: 1. Letter to City Manager from Dinner Key Marina, Inc. raising questions about the intent of Mr. E. P. Iaconis' public comments at the June 22, 1978 Commission Meeting. 2. Letter to Richard L. Fosmoen from Dinner Key Marina, Inc. regarding a summary of major objections to a waterfront trust. 3. Comments on "Why a management contract instead of a lease?" from Dinner Key Marina, Inc. Mil•••••"!, MIMMMW 07 )111Itt:►A, Inc. 24151 so. Iiuysluitc 1)tit•c, E. coconut Grim:. 1i(ticltt July 12, 1978 Mr. Joseph Grassie City Manager City of Miami 3500 Pan American Drive Miami, Florida 33133 ATTACHMENT 1 Dear Mr. Grassie: Having listened to the tape recording of the evaluation of the several marina proposals, it is necessary to raise certain questions regarding the eMroe of Mr. Ike Iaconis as a member and Chairman of the Committee. It has been our understanding that the Committee wastoevaluate °n fornMiamarina andbasis forthe Dinnervarious Keypropls Marina. madeto t e the y In his evaluaal ofothehinformationlprovidedcandsthesintent overly critical o of the proposer, and in certain cases he has misrepresente d that information in his summation maoon f the Committee's efforts that he made to the City Commission nd. It is now apparent that he was a member and active proponent: of the Waterfront AaStaiOmemberrand Chairt manall ofutheg the time he has been acting ears to be a direct conflict Advisory Committee. This appears of interests on his part behecause concepteofuleasing/orumanagement st is in direct competition with t by private industry, and in fact is an active bidder for the management of these two marinas. In reviewing the transcript of the summation de byy Mr. Iaconis, he stated that all of the prop osals private industry are deficient in one it the fords m oroa other,puband in his judgement they do not ic or the City. Furthermore, because he is a Certified Public Accountant, his statement that the Dinner Key Marina is "paying its way. Not only that, but it is doing a heck -of - a -job" must be considered as an intentional misrepresentation. IMMIIIINimmomi MM mM MM ■MM Mr. Joseph Otassie Page 2 July 12, 1978 To assist y your staff in analysing our proposal reply prior to the July 28th meeting, tiie are preparedly to repMr. Iaco to any of the questions or comments raised by Sincerely yours, c Richard Fosmoen Clark Merrill Spencer B. Meredith `President r. ATTACHMENT 2 DDINNIAt KEY )itAlJIlS'A. i,ic ..!95 1 so. ticryslrc►rt• t )rivc. F.-1 1 ( •c►rc►r►ut (+r•nve. tl►►ricia July 13, 1078 ■ ■ ■ ■ Mr. Richard 1 osmoen Assistant City Manager City of Miami 11 3500 Pan American Drive Miami, Florida 33133 Dear Mr. Fosmoen: ■ ■ • ■ ■ ■ • •MaA"a"'+"'c ■ - In an effort to evaluate the Waterfront Trust as a viable alternative to the proposals made by private industry, attached are our comments on the Trust concept as it has been advanced to date. If our interpretation of the Staff Summary is incorrect, please let me know. Also included is a basic summary of the advantages to the City for a Management Contract in comparison to a lease. Despite the technical differences in legal structure, the essential issues will remain: what is the best project, who can best accomplish it and who will best serve the public and City. SBM/im cc: Let' Clark Merrill Sincerely yours, i#6,, .44.c Spencer B. Meredith President MMMMW MEMME Mir mmomw opmmw WMMW %ATEnrRONT "TRUST" Summary of major objections The Trust concept relates to a non-profit operation, whereas it is the City's intention to derive a profit from the operation of the two marinas. This profit covers the cost of fire and police protection) parking and indirect overhead, as well as making a contribution to the general welfare of the non -boating citizens. The operation of a hospital trust which took over an existing non-profit facility that is subsidized by Federal funds, insurance programs and by Dade County, cannot be compared to a Trust for a new facility that must be designed, permitted, financed, constructed and then operated at a profit. The Trust is a group of private citizens functioning as a part-time advisory board with full authority but no responsibility for their actions. They have no capital involved and suffer no consequences for bad judgement (other than dismissal) and gain no reward for good judgement. What is their real incentive? The publicly stated purpose of the proponents of the Trust is to gain control of the waterfront properties of the City and eventually those owned by the County. It envisions itself as a super -agency, determining the development and operation of these properties. This will put the Trust in direct conflict with several existing governmental agencies and civic groups who are now involved in that area. While the Trust, via the City of Miami, can issue Revenue Bonds that are backed only by the revenues of the project itself (and not by the City), who would buy those bonds? The Trust has no operating record, and no capital and no collateral and can give no guarantees and in fact has no responsibility. The statements of Mr. Iaconis as Chairman of the Advisory Committee should be considered in regard to the fact that he has been for some time a major organizer of the Authority/Trust group, which is in direct competition to all the proposals made by private industry. The Trust did not submit a proposal to the City on March 31st. Since theTrust group has not yet been able to present a clear version of howit would accomplish the City's objectives, and because it has several fundamental problems, it can be considered as a delaying tactic to maintain the present low level of dockage rates at the two marinas. The City has previously stated its philosophic objective to involve private capital and expertise in operating certain public facilities. Here is a test case: either the City continues to encourage private industry or it takes a new direction and creates a series of quasi - official semi -autonomous citizen groups to administer its facilities. Dictionary definition: "Trust: a combination of firms formed by a legal agreement, especially one that reduces competition." Examples of the Trust/Authority philosphy in action: Miami Downtown Parking Authority, United States Post Office, Amtrack. 'Thhis summary of the Miami Marina Waterfront Trust was prepared by the City Staff following meetings with Messrs. Ike Iaconis and Tom Dixon who presented their concepts regarding the feasibility of the Trust to operate Dinner Key and Miamarina, as well as the other marine properties of the City. Our comments raise certain questions regarding their Trust concept. MIAMI MARINA WATERFRONT TRUST STATEMENT OF PURPOSE A Miami Marina Waterfront Trust is to be created for the purpose of operating, maintaining and governing such marina facilities as the City Commission may, from time to time, designate and contract for with the Marina Trust. The Trust, in addition, may, from time to time, act as the City's agent in carrying out development of marina facilities and marine oriented operations. The Trust would be given overall responsibility for planning improvements to the City's marine facilities based on a comprehensive waterfront masterplan, and the financing of said facilities. The masterplan would be subject to review by the Planning Advisory Board and approval by the City Commission. Comment: No mention is made of the Trust's role in obtaining the financing and the necessary permits or in designing and overseeing construction of the facility. The Trust assumes that it is more knowledgeable than the City staff, hired consultants, private industry or the Marine Council. The Trust stands alone as the sole authority without input from other groups except at its own discretion. CREATION OF THE TRUST The specific method for creation of a trust which would have the ability to contract with the City for operation and maintenance of marinas and act as the City's agent in development of marinas would need further legal research. Comment: 111 1111 1111111 1111•111111•11 IMMMt Mf MIME Mmmt- Ommm EMEM At present the group presenting the Trust concept do not know how to establish or control such a Trust. • GOVERNING EDDY The Trust shall consist of nine voting members and threege. adoditional of non -voting members to be appointed by on recommendations from Manthe nine members would be appointed ants Association, groups representing the Marine Council, Tenantsrs the City. Five environmental groups, and marina op members would be appointed based on general knowledge and make application for appointment to the City Commission. Why are the three members appointed by the CityManager non -voting? In what way does that representg the City's interest? Sincefive members would be appointed based on general knowledge, what is the definition of fgeera knowledge, and who determines what qualified person or group meets that requirement, i.e., any citizen could delegitimately claim the right to beon t. No person would serve as a member of the tTTrust t Twho has a conflict of interest or does business directly t. Comment: What is the definition of a "conflict of interests", other than doing business with the Trust? Only the City Commission could appoint voting members and could remove any member for cause. What would justify removal of a member of the Trust for such just cause as "incompetence", or "bad advice"? How is such just cause efaluated and established and what is the system removal? Would it involvealreview ong wouboardcbya an outside body, if so, `J procedure take? Furthermore, what would be the consequences of removing a majority of members of the Trust, due to poor results, and what penalty would those members suffer? The Trust would adopt its own by-laws of operation, butat minimum,the trustmemberslelect chairman, avice-chairman, treasurer and seey,ouldmeetmonthlyadkeep records in accordance with the Sunshine Laws. Comment: Is a monthly meeting adequate to supervoise the operation of one marine facility, all of hthe marineYhatcislthesin the practicalleffector lof the County - operating under the Sunshine Law in regard to open discussions? Comment: Comment: ■ ■ ■ ■ MINI u111■uu■III function as a Board of Directors incarryingarrty fingaout Ton Board would obligations between the Trust and contractual oblig In acting as a Board of Directors,btheutwould Comment: members would have full authority have no day-to-day basis to seetha totheir instructions were carried out, due heir part-time role as a member of the Trust. personal members would be entitled to protection from Board liability acting within the scope of powers and duties liability while a commission. assigned by the City In protectingn, members of the Trust fromhey are Comment: personal liability for their actions, where distinguished from a private core D'rectors or Officers can ibe held dnsaccountable and even on. Infthiseway, the Trust has full f the corporation. responsibility, with none authority with no of its private capital invested and of no harmful consequences to any member Trust for bad judgement or bad direction of the activities of the Trus powert. to contract and bencontracted cessary to with, The sue and wouldesued, have tohe as is enter into with to be hire such employees ations that it may necessary into to carry out ande contractual obligations from time beo time,cassign the City, to take such other actions as may fulfill obligations that the City may, or contract for. a to the City to have Comment: What is the advantage in employees and the Trust hire the managing as comp executives of a marina facility as co ede to the City itself hiring such Trusts assumption is that itssi more City qualified than the CitCommin or managers to operate Manager to hire qalif a marine facility. the Trust or other obligations incurred by ono thet City. In the event the Contracts executed byobligations terminated,obligations of the Trust ttsat all oblige which the Trust shall not be bindingthe extent e Trust is ainstthe City to personal property,oliti wouldnforceable against and to of the Trust and with regard to income which have beei.onnthe le with the Trust. was in possesspossession of would have come into the Commentt Since bone of the obligations incurred by the Trust are binding on the City, how does this limit the ability of the Trust to establish credit with local suppliers. In a larger sense, since none of the members of the Trust are personally liable and since the Trust itself has no significant assets, and since the City is not bound by the actions of the Trust, it is therefore i totally unreasonable to expect that any lending institution would lend a large sum p of money to the Trust for the development mm or expansion of marine facilities, since there is absolutely no collateral or guarantee of repayment -- and not even a ■ serious consequence to a member of the Trust. The Trust shall comply with the formal bid requirements of the City of Miami and the State of Florida. Comment: In agreeing to comply with the formal bid requirements of the City, it should be pointed out that the Trust did not make a proposal prior to March 31 and is now in direct competition to the private corpora- tions that did reply to the City s Request for Proposals for Dinner Key and Miamarina. The title to all real property shall lbyeto vest with the the Trust necessary City of Miami, personal property required for the conduct of contractual obligations shall vest with the Trust during the term of contractual obligation. Comment: What safeguards are imposed on the Trust to see that its personal property or funds will not be misused, as has often been the case with other Trust or Authorities. The Trust shall have the power to hire and fire employees, establish personnel policies, bhire necessaryetotfulfillecontractual ctor and such other employees as may e obligations. ■ ■ Comment: What defense has a hired Manager or any other employee against arbitrary action due to personal reasons by the Trust, or for the s or working right to discuss pay, benefit conditions. It is anticipated that a transition period would occur with regard to current employees of the marinas. The City could contract with the Trust for operation and maintenance and expansion of Miamarina and Dinner Key, and the Trust would establish a committee composed of representatives of the Board of Trustees, City Management, City Personnel Department, and the Department of Stadiums and Marinas. This committee would consult with marina employees and employee representatives, and would submit to the Board of Trustees and the City Commission a plan for the transfer to the Trust of all City personnel functions in relation to these designated facilities. This plan, with the recommendations the trustees, of would be submitted following no later than three months g the commencement contract for operation of Dinner Key and/or Miamarina. Comment: The plan regarding transfer of employees from the City to the Trust would be submitted no later than three months following the actual start of operations of the Trust on Dinner Key and Miamarina, but who would be the authority representing the City or the employees that would approve such a plan - - or would it be approved merely by the Trust itself, who had prepared the plan? Rates and Charges - The Trust would be empowered to establish rates and charges for those persons using the facilities of nL receiving care or assistance from the Trust, and to collect money pursuant to such rates and charges. Rates and Charges would be based upon the formula in Chapter 50 of the City Code, dealing with marina rates. Rates representing deviations from that formula must be agreed to by the City Commission. Comment: What is the meaning of "receiving care or assistance from the Trust"? How does the rate formula of Chapter 50 apply to bt service, debt reserves, major repair reserves, and adequate insurance? (It should be noted that in the past the City has been self -insured.) To require the approval of the City Commission in order to change rates could prove to be more cumbersome than the standard lease require- ments which permit the City Manager to approve reasonable rate changes. The Trust would be able to accept gifts and to apply for Federal or State grants upon approval of the City Manager. iuiiii■uuiiuuii of Trust to eiit: bs it the iy from privateeindividuals or seek charity rants to apply for Federal or State g it order to renovate litiereplace nd. if so, the marina existing what is telikelihood ofobtaining such funds. and how long co Trustuld ake? would use such services of the City as may be desirable tThe City law De avoid duplication Cityycplanning Departmentpintthe tconct requiredf Department and the and feasibility sthagencies whowould are cncerned planningo cooperate with other governmentalTannin and operation of with andhave linithe Cityfor ofMiami. waterfront properties Comment: For providing the services of various City Departments how does the City receive compensation for the direct and indirect expenses of the time of the personnel the use of the facilities involved? and cooperating with other age the alternatives for the City in theitenthe the Trust does not desire to comply y'wit In recommendations of the City's agencies? that event who will resolve the disagreement? FINANCIAL RFRONTSTRUSTCN OF THE IAMI WATE Trust would establish a fiscal year which iscoitcideso the withthat The beCity and would operate pursuant of the of Miami,year, the al For City budget and amendments thereto. each fiscalitthe first Trust would sub^�it to the City Commission, day of April, a budget for the next whichbudget pertaining to would not be operating and capital expenditures, Commission. implemented until approval by In operating under a City budget,. whereby Comment: year in advance, expenses are determined one there is a natural inflexibility to respond to immediate business situationshorss repair requirements. Past exp ethis to be a limofithefDinneroKeyhDocksrepair and maintenance bud et forms The Trust budget would be prepared on official City g the City Manager, shall be reviewed in in a format prescribed by requests of other City a manner similar to that iandhshallother incorporated in the departments are reviewed, the City proposed budget submitted to the City Commission by Manager. Comment: Whoauthority ority the questionstaff (for technical reasons) • authority to q the budget of the Trust? Mel NIB EMMF Els MEW mmw- mom M MM Comment: The Trust would have the ability to spend bond proceeds in accordance with duties assigned to it by the City CommicsiOn. The Trust refers to its ability to spend bond proceeds -- but from what source does it intend to obtain such bond proceeds. Who would act as the Trustee for the bond- holder, and more basically who would be the bondholder? As mentioned previously the ability to finance via Revenue Bonds without any collateral or guarantee or liability on the part of the Trust precludes the possibility of anyone purchasing such bonds. would have the power to purchase and manage necessary and supplies for the operation of marinas under contract. Comment: The Trust materials Comment: The any Comment: What control does the City have over the Trust's purchasing practices to see that the best prices and qualities are obtained, since the Trust has no profit motive, and receives no reward for saving money or for efficient operation. Trust would have the ability to enforce through legal means and all contractual obligations. In the event of losing a major lawsuit, what assets would it have to satisfy a judgement? City could appropriate any excess funds of the Trust not approved for operation or capital purposes. Apparently the City gets only the excess funds of the Trust, and not an amount pre -established as its due share for contribution to general overhead of the City. This is in comparison to the proposals made by private industry. The City Manager would have the ability and be empowered at all times to conduct administrative audits of facilities; legal opinions of the City Attorney's Office would be binding upon the Trust. Comment: Is it the intention of the Trust to rely solely on the City Attorney's Office for its legal opinions and support, and to act completely in accordance with those recommendations? The Trust shall be required to properly maintain the contract ucilfacmelnecessary improvements t o smtid such facilities inaccordance withadopted City budgets the terms of any annual contracts. Comment: Who, other than the Trust itself, determines the standards of maintenance and necessary improvements? In a lease site, the City nag hasuthis nright based lon his reasonableer judgement. iME ■ ATTACHMENT 3 QUI STION . Why a "fitanagetnent dontlact" instead of a "lease"? The request for proposals for Dinner Key states: "Notice of Public Proposal, Proposal Document A: The City reserves the right to accept any proposal, or combination of proposals, deemed to be in the best interest of the City, to waive any irregularities in any proposals, or to reject any or all proposals and to readvertise for new proposals, if desired." (emphasis added) In comparison to a lease the management contract reduces the possibility of litigation relating to the reverter clause in the title when the City obtained the property from the State of Florida, which states: "Provided, however, anything herein to the contrary not withstanding, this deed is given and granted upon the express condition subsequent that the Grantee herein or its successors and assigns shall never sell or convey or lease the above described land or any part thereof to any private person, firm or corporation for any private use or purpose, it being the intention of this restriction that the said lands shall be used solely for public purposes, including municipal purposes and not otherwise." (emphasis added) The managing company operates the facility under a contractual agreement with the City to design, finance, construct, manage and maintain the property, to pay the debt service, to produce revenue to the City and to provide the boater and the public with various services. Legally, a Management Contract conveys no leasehold interest or possessory interest in the property or real improvements. The City retains full title to all property and to the real improvements as they are constructed. By not having a leasehold or possessory interest in the property there is a reduced liklihood of ad valorem taxes being imposed by the Dade County Tax Assessor, These taxes -- of which approximately 1/3 would go to the City of Miami and 1/3 to the County and 1/3 to the School Board -- would create an added cost which would be passed on to the boater regardless of whether a lease or management contract were involved. Under present law, with a management contract it is not possible for the Dade County Tax Assessor to establish a basis for such taxes. At present there is litigation in the courts with the Tax Assessor attempting to establish these taxes where leases of public property are involved. DKM's Management Contract provides for compensation to the managing company based on net after operating costs and debt service, rather than a percentage of the gross, as is frequently the case. That is, DKM as the managing company must operate the facility efficiently, meet its debt service and obligations to the City, maintain the facility for the public -- and only then does it get its profit. This compares to other types of management contracts where the management company is guaranteed its profit as a portion of the gross revenues, regardless of its efficiency in operating the facility. DKM's proposal obviously has far more advantages to the City and the public. • r A management contract under the form proposed by DK1 is a mid -point between a lease "_ athidtis the Cityeoperatingatheold facilityest to itselfa There company gr - There is far greater aer°wouldlbetunderto taeleasCity e,uaadrin a thisgwayn t contract than there ev the public is better served. Unlike a "Trust" the managemcincent contract bondholderprovides lookshtolthefor guaranteeing the bondholder, management company as a guarantor of the bond and not to the City or to the public. All of the Directors of Dinner Key Marina, Inc. are presently in the marina and marine services industry and have proven track records, local knowledge and financial capacity. From the point of view of the City, the boat owner and the general public there are no negatives to eent cotttadtain comparison to a lease and there are several advantages 4, a .e,- ke.7 //-74r n c%, �// Z/�� ■