HomeMy Public PortalAbout1996-01-16 Regular MeetingCOUNCIL MINUTES
REGULAR MEETING - JANUARY 16, 1996
The regular meeting of the Bat Harbour Village Council was
held on Tuesday. January 16. 1996. in the Council Chamber at Bal
Harbour Village Hall. The meeting was called to order by Mayor
Spiegel at 9:35 a.m. The roll was called and those present were:
Mayor Estelle Spiegel
Assistant Mayor Matthew B. Blank
Councilman James E. Boggess
Councilman Andrew R. Hirsch'
Councilman Sol M. Taplin
Also present: lifred J. Treppeda. Village Manager
Jeanette Horton. Village Clerk
Richard J. Weiss. Village Attorney
As a quorum was determined to be present. the meetin2
commenced.
_. approval of :Minutes: Assistant Mayor Blank requested the
minutes be corrected on page -. sixth paragraph last sentence
should read "until the construction of the building is completed."
A motion was offered by Councilman Taplin and seconded by
Councilman Boggess to approve the minutes of the December 19. 1995.
Regular Meeting as corrected. There being no further correction;
or additions. the motion carried unanimously (5-0), and the minutes
were approved as corrected.
A motion was offered by counci'man Taplin and Seconded by Assistant
Mayor Bank to approve the minutes of the December 29. 1995.
Special Meeting. :'here being no changes or additions, the motion
carried unanimously (5--0). and the minutes were approved as
submitted.
Presentations - Officer of the Month: None
4. Public Hearings: None
Ordinances First Reading: None
b. Ordinances Second Readit>gLPublic hearing: None
Resolutions: None
S. Discussion on the Author-izatio i_of-._Resor_t_ Tux Funds for
Grand Opening_of Pool Area ofthe Sheraton Bal Barbour _-
Raj Singh, General_ Manager Sea View Hotel:
Mr. Singh explained at the last Resort Tax Committee meeting he
voted against S100.000 to be spent for the Grand Vpening of the
146
pout area of the sheraton. At this time. he would like to make his
feelings clear as to why he voted against this expenditure of
Resort Tax Funds. as well as other things that are disturbing to
the Sea View Hotel.
Mr. Singh explained he has been a member of the Resort Tax
wiax
Committee since 1089. He stated at this time. he is unhappy
the direction in which the philosophy of the Resort Tax is heading.
The Resort Tax was started for the purpose of renourishing the
beach so money would be available when the time came for the
renourishment. The S100.000 for the Sheraton is a departure from
that principle. At the time the s100.000 was approved. the
Sheraton requested this funding to bring in r, big named star such
as Gloria Estefan. However. that did not happen second rate singer
will appear. which was not fully disclosed to the Resort Tax
Committee. He further explained the Sea View has always shown good
faith to the Sheraton Ba1 Harbour.
Mr. Singh stated the other item he would !ike to discuss is the
Emissary position. He explained an Lniissary was hired to represent
the Village of Bal Harbour. but there is a departure from what was
discussed and what actually it has become. He continued to explain
the Village had no desire to have the Emissary on the Village
payroll. therefore the Sheraton volunteered to have the Emissary as
their employee. However. from that point on there are some
differences. such as the contract. lie continued to explain the
last budget he received for the Emissary position was for 5185.000.
The changes that Greenstone Roberts made to the budget were not
voted on by the Resort Tax Committee.
Mr. Singh stated in his opinion the Villase's 50th anniversary
should not be tiers in with the Sheraton's Grand Opening of their
pool area. The 50th Anniversary celebration should be a stand
alone function.
Mr. Singh then proceeded to explain his comments come down to the
following:
Things are not thought through
Actions are takers
The reserve is below 2.5 million
estimate given by Mr. Flynn
The beaches are a priority
Only if funds are left over they
should be used for marketing
Ba1 Harbour
He further stated that these are public funds. therefore the funds
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A r7
should oe spent the way the public feels they should be spent.
Since he is a taxpayer o( the Village he feels the funds have been
improperly spent. He suggested to be fair whatever funds arc
received from Resort Tax should have an amount appropriated by the
Cillage that would cover beach renourishment and other beach
related expenses. and whatever is left over should be allocated to
the parties that make the contribution in the same portion.
Mayor Spiegel explained under the Village Managers reports item
9C2 the recommendation of the Village Manager and Finance Director
is to defer consideration of increasing the S1.000.000 beach
reserve until the end of the current fiscal year. .1t that time.
the Village wilt be finished with Phase 11 Landscaping project and
will know where the fund balance stands after the current fiscal
year is over.
Mayor Spiegel stated to her recollection. when she first came on
the Council. one third of the tax collected was set aside to
increase the reserve for beach renourishment.
Councilman Taplin stated he was instrumental at the time the
Resort Tax was invoked. At the time a Resort Tax was passed in
Tallahassee it was to increase tourism. He further explained at
that time he contacted Tallahassee and asked if the Village could
impose a 2% Resort Tax for the single purpose of building a beach.
He continued to explain Tallahassee approved the Resort Tax for the
nourishment of the beach. If the Village did not have the Resort
Tax at that time they would not have a beach because the Federal
Government would not nelp to build a beach. He then proceeded to
explain 1 million dollars was borrowed from the Community Bank to
build the beach. and some of the Ocean Front property owners had to
guarantee the loan. The total cost to build the beach was
million dollars. The Federal Government did reimburse the Village
2 million dollars. Today the Village finds it is in the same
position. since the beach is 50', eroded. He stated he appreciates
the fact that most of the Resort tax funds come from the Sheraton.
and they want to have the say where the funds are spent. He stated
in his opinion. ne thinks the Sheraton should have a say in the
spending of these funds. but he wonders where the Sheraton would be
without a beach. At this time the most important issue is the
renourishment of the beach. Therefore. the Council should
revaluate how the funds should be spent. forget about the trees or
promoting the Sheraton Bai Harbour. Sea View Hotel or the Bai
Harbour Shops.
Councilman Boggess stated when the Beach Renourishment Reserve
reached 3 million dollars, the Village Manager was directed to see
what would be a reasonable amount to have in that reserve. The
Manager at that time contacted the Army Corps. of Engineers anu
they said 1 million dollars should be kept in that reserve. He
asked Mr. Treppeda if this was correct. Councilman Hirschl stated
this is in the minutes and the answer is ycs. Therefore. the funds
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148
were transferred at that time without concern.
Mayor Spiegel asked Mr. Treppeda where the Village stands as co
sending out divers to locate a source of sand. Mr. Treppeda
replied he is waiting for a response to his letter to the Army
Corps. of Engineers.
Mayor Spiegel asked for an update on the Emissary agreement. Mr.
Weiss explained he is working on two items. one is amending the
letter of employment. and the other is a simple grant agreement
between the Village and the Sheraton Bat Harbour. He the❑
proceeded to explain the grant agreement to the Council.
Assistant Mayor Blank referred to the same letter that Mr. Weiss
mentioned. which states in the first paragraph that it is a joint
venture between the Sheraton Bal Harbour and the Bal Harbour Shops.
He further stated the letter congratulates Ms. Cardenas on her
promotion. In his opinion. a promotion is being promoted to a
higher job, therefore he was of the opinion that Ms. Cardenas was
working for the Sheraton Bat Harbour and they promoted her. He
asked this be clarified. Mr. Fine explained that Ms. Cardenas was
not an employee of the Sheraton. and that was a standard letter
that is sent to new hires.
Councilman Boggess stated he understood the Emissary would not be
a Village employee because of the added benefits, but the
Sheraton's benefits amount to 4S'.. Therefore, maybe it would be
beneficial to have this person as a Village employee.
Councilman Hirschl explained from the Committees' standpoint. since
this program was modeled after the Swan and Dolphin hotels in
Orlando. it was felt there would be a better control if the
Emissary was under the direct supervision of the hotels. The
Committee discussed the different benefit package of the Sea View
Hotel and the Sheraton. and they decided the difference was only a
few thousand dollars. It was decided that the Emissary would be
employed by the Sheraton. He further explained the Emissary
program is the next step following the key Promotion, now is the
time to directly market Bal Harbour Village.
Councilman Hirschl explained the grant is self limiting. and is
only for the balance of this budget year. He then proceeded to
explain the issue of the Emissary business card. and that the
minutes reflect the fact that the Emissary represents everyone.
Mr. Fine. Director of Marketing Sheraton Bal Harbour, addressed the
Council and explained the Emissary position is for the community.
The position was designed and patterned after a similar community's
Emissary in Orlando. He further explained the focus of this
position is that they will go out and represent this community and
the three selling entities. The primary focus will be to stage
events in Latin America and North America to generate tourism for
Regular Council Meeting 01/16/96 4
this community. He continued to explain Ms. t'ardenas w.ii1 make
monthly reports to the Resort Tax Committee. and she will be
managed by him on a day to day basis.
Mr. Fine then proceeded to explain the event that will be held in
March at the Sheraton. He displayed a sample of the 50th
anniversary logo banners that will be displayed at the hotel. He
then proceeded to explain the event will be held with the Miami
Project as the charity, and Mike Love formerly of the Beach Boys
will be the entertainer. He then proceeded to explain how the
Village's 50th anniversary will be celebrated at this event.
Discussion followed as to the expenditure for the March event at
the Sheraton. Councilman Boggess stated he toured the Sheraton
pool area and he was amazed by the renovations. HHe the explained the
he
sees nothing inappropriate about proceeding
Shera
event. Councilman Taplin asked if there will be a charge for the
residents of the Village. Mr. Fine explained the $100.000 is
dedicated to bring a name performer to entertain at the event. The
total expenses for the evening will be approximately S200.000. He
further explained he will be meeting with Susie Safie of the Miami
Project to discuss the cost of the tickets for this event.
Denis McGeary. Bal Harbour Manor asked if the entertainment could
be underwritten. Mr. Fine replied this was looked into. but they
were unable to find anyone to underwrite the entertainment.
Councilman Boggess questioned who asked Alice Fisher to form a 50th
Anniversary Committee. Mr. Treppeda replied no Committee has been
formed at this time. Councilman Hirsch' explained what hat
transpired at the last Resort Tax Committee meeting in reference to
this Committee. Mayor Spiegel stated she thought Ms. Fisher would
be present at this meeting. since she is the Village's Public
relations agent. Councilman Boggess stated the Council should be
Ex-Officio members. that each Council member submit names to the
Village Manager. and that one member be from the Sheraton Bal
Harbour. Sea View Hotel and Bal Harbour Shops. Therefore. the
Committee will be comprised of eight members plus the Council as
Ex-Officio members. Discussion followed as to different event,
that should take place for the celebration of the 50th Anniversary
throughout a twelve month period.
Mr. Weiss explained this committee is subject to the Sunshine Law.
The meetings must be noticed to the public. and minutes recorded.
Discussion followed as to the renourishment of the beach.
Assistant Mayor Blank referred to a letter received from Mr. Ilynn.
In which Mr. Flynn stated the cost to renourish the peach would '..•e
? million dollars. Councilman Boggess stated if the Village should
renourish the beach the cost would be approximately 3 million
dollars. Councilman Taplin suggested the Village borrow the funds
and pay them back with Resort Tax Funds and increase the Beach
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150
Renourishment Reserve. Mr. Treppeda stated as soon as he received
a reply from the Army Corps. of Engineers he will advise the
Council.
Assistant Mayor Blank referred to the Passporte Program that was
voted on to spend $73.000. and the minutes reflect purchases of
$144,000 that are contributed to the Passporte for last year. Now
it was voted to spend another $73.000. Councilman Hirschl stated
this is not correct. Assistant Mayor Blank then proceeded to read
from the Resort Tax minutes on what transpired as to this approval.
It was in the minutes that only 324.000 was approved and not
$73.000 as Assistant Mayor Blank first stated. Assistant Mayor
Blank questioned if it is wise to spend $73.000 and only receive
S144.000 in purchases. it seems no one is following through. He
then proceeded to question the cost per page charged to the
advertisers. Mr. Fine explained the charge to advertisers is
$3.000 for a full page and $1.500 for a half page. Last year's
Pasaportc had only 16 advertisers. but for this year there are 24
advertisers. Therefore. the actual cost to Resort Tax funds is
only $24.000 this year. He then proceeded to explain the Passport
program. which is worth $800 to the customers. The Passporte is a
marketing tool. which helps market guest rooms. Assistant Mayor
Blank asked where are the results from the other 12 retailers that
had taken ads. Mr. Fine replied the biggest beneficiary was Saks
Fifth Avenue. but Nieman Marcus had an offering that just said come
into the store and they will give a $25.00 value item. They were
unable to qualify the amount of purchases associated to that
giveaway. but they went through 2000 items. Councilman Hirschl
asked Mr. Fine if it was true that it was easier to sell the
advertisement this year to the repeat stores. Mr. Fine replied
yes.
Mayor Spiegel stated she appreciated Mr. Singh appearing before the
Council. and giving them his point of view. In doing this. he
opened up a discussion that the entire Council was able to
participate in.
At this time. Councilman Hirschl requested a vote of confidence for
the Resort Tax Committee. He further stated that close to two
hours has been spent discussing Committee work that has already
been discussed. He then stated maybe the Resort Tax Committee
should be abolished. and the Council make the decisions.
Mr. Treppeda asked the Council if they are happy with what they are
receiving from the staff. He further explained Mrs. Horton had
given the highlights of the last Resort Tax meeting. and if the
Council so desires this would be continued. It was the consensus
of the council that they be given the highlights of the Resort Tax
Committee meetings.
Mr. Singh stated that no funds have been budgeted for the 50th
Anniversary events. Mr. Treppeda explained there is a $30.000 line
Regular Council Meeting O1/16/96 6
151
item in the Resort Tax budget for special events that is not
allocated. which will be used for the 50th Anniversary events.
Assistant Mayor Blank asked Mr. Treppeda what is the fund balance
of the Resort tax. Mr. Treppeda replied if everything is spent
that is budgeted the fund balance would be $844.899 plus the
$1,000.000 for beach reserve. Assistant Mayor Blank then asked
what the fund balance was two years ago. Mr. Treppeda replied
$2,819.408. plus $1.000.000 beach reserve.
Reports and Recommendations:
A. Mayor and Council: None
B. Village Attorney:
Mr. Weiss explained the draft ordinance does not require
discussion. he requested the Council review the draft, which is
based on the recommendations of the Village's planner. He further
stated after the Council reviewed the ordinance he would be happy
to speak individually with them about the ordinance.
C. Village Manager:
Landscape Light Shields:
Mr. Treppeda explained on January 10th a lighting demonstration was
held to compare the internal shield to the external shield on tic
landscaping lights for the Phase II Landscaping project. He
further explained everyone present agreed that the internal shield
virtually eliminated the glare to both pedestrian and vehicle
traffic. The internal shield would also direct more light to the•
head of the tree. creating a Netter lighting effect. He continued
to explain with the use of internal shields the ground cover could
be eliminated, which would save the Village approximately $6.000.
At this time. he requested Council approval to switch from the
external shields to the internal shields and from ground cover to
soot.
A motion was offered by Councilman Boggess and seconded by
Assistant Mayor Blank to approve the internal shields and sod as
ground cover. The motion carried with the vote as follows: Mayor
Spiegel aye: Assistant Mayor Blank aye: Councilman Boggess aye:
councilman Hirschl aye: Councilman Taplin aye.
Beach Renourishment Reserve:
This was discussed previously under item 8.
Quarterly Financial Report:
Mr. Treppeda explained the General Fund is expended be ??'. which is
Regular Council Meeting 01/l6/96
.i52
right on line for this period of time. He further explained
fluctuations in individual departments above or below 25 can be
attributed to expenditures which are made up front for the entire
year or expenditures which have not been made. He continued to
explain the General Fund revenues arc high due to ad valorem taxes
are received at the beginning of the year. Resort tax revenues arc
down due to construction work at the Sheraton Bal Harbour. The
water and sewer fund show artificially low amounts which is due to
accounting procedures. Mr. Walker advises that for the first
quarter. revenues and expenditures are within appropriate levels.
He then asked the Council if they had any questions about
individual line items.
Councilman Hirschl asked why either General Government is expended
by 40';t. Mr. Walker replied all insurance for the Village is pre
paid for the entire year.
Councilman Boggess stated he is very concerned about the statement
that both the Water and Sewer Funds are under the 25<. level. and
this trend is expected to continue. Mr. Walker stated that is not
a true statement. He explained this memo was given bi him over tiie
phone and was a miscommunication.
Councilman Hirschl asked Mr. Walker if there was any department
that he is concerned with. Mr. Walker replied he is concerned
about Resort tax revenue. He then proceeded to refer to the chart
included in the agenda packet. He explained that he believes the
revenue is down due to the construction that has taken place at the
Sheraton Ba1 Harbour.
50th Anniversary Committee and Event at Sheraton:
Mr. Treppeda explained this item was already discussed under item
8.
L0. Other Business:
Councilman Taplin stated there has been complaints about employees
of the contractors parking on the beach. Mr. Treppeda explained
the police department is working on this. and has issued parking
tickets.
Charles Brown gave an update on what has transpired in December and
January on the amphitheater issue. He explained at the City of
North Miami's January meeting discussion will be held on a bond
issue for the building of the amphitheater. Another concern of the
coalition is that the theater will be run under a 50 year
management contract and not leased.
Councilman Boggess stated no further mediation session has been
scheduled. The sessions were recessed until the developer came up
with a set of plans that could be reviewed. In his opinion. no
Regular Council Meeting 01/16/06 8
work is being done on plans. and the bond issue is for tne clean up
of the site.
Bob Maute, Fairfield Manor. stated he noticed when coming to the
Council meetings there are not many parking spaces available in the
parking lot.' Mr. Treppeda explained the lot is open to the
public.
Mr. Treppeda explainer McCall Magazine will be doing a photo shoot
using Bai Harbour as a back drop. and there would also be some test
about Bal Harbour. At the time this was discussed at the lesort
Tax Committee it t,as believed the hotels would be donating rooms.
The Sheraton is full at that time. and Mr. Singh said he would give
the rooms at cost which is $110 per room. Therefore. at this time
he is requesting Council approval for $2.h40.
A motion was offered by Councilman Hirschl and seconded by
Councilman Boggess to approve this expenditure. the motion carried
with the vote as follows: Mayor Spiegel aye: Assistant Mayor Blank
aye: Councilman Boggess aye; Councilman Hirschl aye; Councilman
Taplin absent.
11. Adjourn:
There being no further business to come before the Council. a
motion was offered by Councilman Boggess and seconded by Councilma❑
Hirschl to adjourn. The motion carried unanimously- (4-0). with
Councilman Iapli;i absent. and'the meeting adjourned at 1l:35 a.m.
Mayor Estelle S
Attest:
Jeanette Horton. CMC/AAF.
Village Clerk
Councilman Taplin left the meeting at this time.
Regular Council Meeting Ok/i6/96