HomeMy Public PortalAbout1979-08-28 MeetingMr. Whitman told the council that the Resort Tax Advisory Board
wished to recommend Mr. Ralph Gimel as a member to replace Mr. Cliff
who is leaving the area. On motion of Mr. Krez, seconded by Mr. Taplin,
and voted Mr. Gimel was appointed to the Board.
Mr. Maley recommended to the council their approval of two additional
panels on the Bal Harbour Shops Collins Avenue sign to indicate whether
the shops and/or restaurants were open at night. The request was made by one
of the restaurant owners. On motion of Miss Gray, seconded by Mr. Beatty and
voted the change was approved.
Plans for a wooden trellis to extend into the side setback area at
Dr. Elias' home at 255 Bal Bay Drive were tabled until his neighbor to the
north could be contacted.
Miss Gray asked the council's opinion on the millage roll -back election
and it was their opinion that they were against it as individuals.
Mr. Maley reported that new heavy duty parking meters with pipe mod-
ifications had been received and were being installed in the parking lots under
Haulover Bridge.
On motion of Mr. Krez, seconded by Miss Gray the meeting was adjourned
at 11:50 A. M.
Attest:
Village Clerk
COUNCIL MINUTES
August 28, 1979
Mayor
July 31, 1979
The Council of Bal Harbour Village met Tuesday, August 28, 1979
at 9:30 A. M. in the Village Hall.
Present: Miss Gray, and Messrs. Beatty, Printup and Taplin
Absent: Mr. Krez
Also present were Fred W. Maley, Village Manager; Mary T.
Wetterer, Village Clerk, and Alan S. Gold, Village Attorney.
On motion of Mr. Taplin, seconded by Miss Gray, the minutes of July
31, 1979 were approved as submitted.
Mr. Gold reviewed his opinion of August 6, 1979 in which he advised the
council that they may expend general funds to repair municipally owned street
lights in the residential section based on the Charter and General
Laws. He said the council also has the option of creating a special
tax district for this work.
Mr. Frasuer Knight, architect for the village hall addition and
renovations, for the Department of Tourism and Police Department,
said the final plans would be ready for the first of next week. Mr. Maley
asked for permission to take bids to be presented at the September
council meeting. On motion of Mr. Taplin, seconded by Mr. Beatty and
voted the Village Manager was authorized to advertise for bids.
Mr. Maley explained that he had negotiated with Mr. Wes Dunaway,
the interior decorator who had designed the interior of the prior build-
ing remodeling. He had a proposal from him to do the new addition along
the lines of the rest of the building. Mr. Dunaway explained his pro-
posal and on motion of Mr. Taplin, seconded by Mr. Beatty and voted Mr.
Dunaway was retained to decorate the addition at a fee not to exceed $32,000.
Mr. Maley advised the council that he had a letter from Mr. Merritt
Stierheim, Manager of Dade County, asking that Bal Harbour contribute
$178,000 toward the operation of the Fire & Rescue Station at Baker's
Haulover if the Tax Cut Referendum passes on September 18th. He ex-
plained that we would have to borrow this money or use the amount allocated
for street light renovations and the contingency fund. Mr. Miller, an
apartment resident, objected to the use of general tax revenue for residential
street light improvements due to the private nature of the streets. Mr.
Gold explained his opinion to him on the use of general funds for such an
improvement. It was moved by Mr. Taplin, seconded by Mr. Beatty and voted
that General Tax money would not be allocated for residential street light
improvements. Ordinance No. 208, adopting a budget for the General Fund
for 1979-80 was read by the Village Clerk. On motion of Mr. Taplin, seconded
by Mr. Beatty and voted
Ordinance No. 208
was adopted.
Miss Wetterer read Ordinance No. 209, adopting a budget for the Water
Department for 1979-80. On motion of Miss Gray, seconded by Mr. Taplin
and voted
Ordinance No. 209
was adopted.
Ordinance no 210, adopting a budget for the Sewer Department for 1979-80
was read by the Village Clerk. On motion of Mr. Beatty, seconded by Miss
Gray and voted
Ordinance No 210
was adopted.
Ordinance No. 211, adopting a budget for the Department of Tourism
for 1979-80 was read by the Village Clerk. Mr. Gimel and Mr. Kaplan
spoke on the benefits derived from the Advertising program. The capital
projects for the attraction of tourists were discussed and it was suggested
that Mr. Maley contact Dade County regarding the addition of tennis courts
and lighting at Baker's Haulover Park. On motion of Mr. Taplin, seconded
by Miss Gray and voted
Ordinance No. 211
was adopted.
August 28, 1979
Minutes of the Joint Special Meeting of Councils held May 8, 1979 Page Two
On the question of whether the Miami Beach proposal is fair and what the towns'
position should be in that regard, Mr. Gold called on Mr. Silverman of Rachlin & Cohen
to outline the Miami Beach offer and the response of Rachlin & Cohen to that offer.
Mr. Silverman pointed out that the figures in the Miami Beach proposal were not drafted
by the experts hired by Miami Beach, but by that city's internal staff using information
prepared by the staff of Thomas Merlo, the expert of Miami Beach in previous rate
hearings of the City of Miami Beach. The net result is, he stated, that the rates
presented to the towns by Mr. Shevin are grossly overstated in his opinion. Mr.
Silverman then outlined the procedures and facts used by Rachlin & Cohen in determining
its recommendation to the towns as to proper rates as shown in Mr. Silverman's letter
dated May 4, 1979, addressed to the attorneys of the three municipalities. Mr. Cold
asked Mr. Silverman to highlight the difference between what Shevin had proposed and
what is now being proposed by Rachlin & Cohen. Mr. Silverman stated that there were
two basic differences. The first was that his includes actual debt cost of the City
of Miami Beach, including principal, interest and debt coverage. The second is that
there is a horrendous difference between what the audited report of the City of Miami
Beach says is the investment in its plant and service and what the Beach's engineering
department says is the Beach's investment. The difference is about $6 million.
Bay Harbor Councilman Rauch asked Mr. Silverman if he could outline the City of
Miami Beach's proposal for the six years in question. Mr. Silverman did so as follows:
Period
For the fiscal year ended 9/30/73
" 9/30/74
" 9/30/75
" 9/30/76
" 9/30/77
"tt" 9/30/78
Suggested for the 197C-1979 year
Range of Rates
Low High
27C 32C per
310 37C "
32c 37C "
36c 41C "
37c 42c "
42c 48c "
43C 49C "
M. gals.
IT
TT 11
f.
IT
Bay Harbour Councilman Joseph Gardner noted that the offer presented by Robert Shevin
at the meeting held on April 23rd was that the cities let Miami Beach keep the 8c escrow
involving the years 1972 through 1975 and the interest be split 50/50 between the City
of Miami Beach and the three cities. Bal Harbour Manager Fred Maley commented that
another way to phrase Shevin's offer was basically 33C flat rate for the first three
years and 4011c from 1976 to the present. He noted that the 33C rate was exactly what
Miami Beach intended to levy on the towns when we brought suit beginning October of 1972.
The 401/2c was reached by taking the difference between 33c and the 48c the Beach attempted
to charge in 1975, splitting that difference in half and adding it to the 33c rate.
Mr. Silverman pointed out that the 48c rate included about 7c to make up an alleged
deficit in the operation of the Miami Beach water department from previous years. Mr.
Maley stated that he felt it was important to note that Mr. Shevin had indicated that
the settlement was still "in the political arena" and that the towns' counter proposal,
if any, should be presented in lump sum figures rather than specific rates per thousand
gallons per year. Mr. Silverman also stated that Mr. Shevin had made it quite clear
at the recent meeting that, politically, he feels he cannot approach the Miami Beach
Commission with an offer of less than 33c for the "old" retroactive period which brought
about the first piece of litigation. North Bay Village Attorney Joe Weil outlined
the present situation and past litigation, noting that there is no question as to the
Reach having to proceed on the actual cost accounting basis. The problem with Bal
Harbour Village and Bay Harbor Islands, and to some extent North Bay Village, is that
although Mr. Shevin keeps assuring the towns that the water rate situation and the water
Minutes of the Joint Special Meeting of Councils held May 8, 1979 Page Three
supply situation are not necessarily tied together, they are in fact tied together.
For the benefit of comparatively new Council members, Bay Harbor Islands Mayor Nelson
outlined the past history of the water supply situation and the water rate dispute.
During this explanation, Bal Harbour Councilman John Beatty had to leave due to
another commitment.
Alan Gold then spoke, noting that the Council must decide whether to accept or reject
Miami Beach Attorney Shevin's proposal. Assuming the proposal is rejected based upon
the information and recommendation from Mr. Silverman of Rachlin & Cohen,the Councils
must decide whether the towns will present Miami Beach with a counter proposal based
on Mr. Silvernan's suggestions. He further suggested that in the letter to Mr. Shevin
making the taunter proposal, it should be suggested to Mr. Shevin that he must decide
whether or not the question of retroactive rates is going to be a linkage, or blockage,
to a future contract with Miami Beach. Bal Harbour Village and Bay Harbor Islands,
without binding North Bay Village, should further propose to Mr. Shevin that assuming
he will go forward with a contract for water supply to Bay Harbor and Bal Harbour and
not argue the natter of retroactive rates but let that go before the Water and Sewer
Board, the two towns would still enter into a contract for prospective rates. Mr.
Gold noted that the amount Miami Beach proposes for the purpose of a contract is
subject to Water and Sewer Board review of that prospective rate. If the Board determines
the 43C rate is too high, the towns would get a credit. If it is too low, the towns
would have to add a surcharge to their rates. This arrangement would allow Miami Beach
to enter into a contract for water supplies and not feel jeopardized that it cannot
meet its expenses. If Mr. Shevin refuses to enter into a contract on this basis, Mr.
Gold continued, it would be his suggestion that the towns petition the Water and
Sewer Board to require Miami Beach to enter into a contract to serve the towns and set
a rate for the prospective period. There followed some discussion concerning the water
supply situation from the City of North Miami Beach and the City of Miami Beach. Bal
Harbour Village Manager Fred Maley brought up the recent proposal made by Mr. George
King of the Water and Sewer Authority relative to the towns becoming customers of the
County through existing Miami Beach water lines and the possibility that Miami Beach
may now be willing to relinquish the towns as water customers. Mr. Maley stated that
he did not feel the towns would receive a favorable compromise by the City of Miami
Beach and that he felt the towns' recourse is to go to the Water and Sewer Board as a
public emergency. He noted to the Councils present the recent situation experienced
by Bal Harbour and Bay Harbor Islands concerning a severe shortage of water. He said
the City of North Miami Beach has inserted a 6-inch piece of pipe inside its 16-inch
supply line to the towns to restrict the flow of water. In addition that city is
contemplating putting a pressure regulating valve on that line that will further
restrict the flow of water to the towns.
In answer to an earlier question made by Councilwoman Levinson of Bay Harbor Islands,
North Bay Village Attorney Joe Weil noted that the contract between Miami Beach and the
towns has another seven years to go.
After considerable discussion, Bay Harbor Islands Councilman Joseph Gardner moved that
two separate letters be sent to Miami Beach, one jointly from Bay Harbor Islands and
from Bal Harbour Village containing the suggestion made earlier by Alan Gold. The
motion was seconded by Bal Harbour Village Mayor Hale Printup. North Bay Village
Council member Mitchell Potter asked what the settlement figures would be in lump sum
dollars as it was suggested by Shevin that the counter proposal be presented to Miami
Beach in that manner. Mr. Silverman indicated that he did not have the figures of the
water consumption with him at this time and could not say what the lump sum figure would be.
Minutes of the Joint Special Meeting of Councils held May 8, 1979 Page Four
Alan Gold then restated the concept of his suggestion referred to in Mr. Gardner's
motion. The concept would be, at least for Bay Harbor and Bal Harbour, to reject the
offer made by Shevin, to counter -propose the offer suggested by Mr. Silverman in terms
of cents per thousand gallons for the years stated. The counter -proposal should say,
however, that a different figure may be justified if Miami Beach is willing to sit
down with the two towns and the Water and Sewer Authority and discuss the Authority's
proposal to buy Miami Beach's line to the towns. If an agreement cannot be worked out
with the County, the towns would ask Miami Beach to enter into a contract for water
supply to the towns. Then, the towns would accept the proposed Miami Beach 42C rate
subject to the towns' right to have the Water and Sewer Board review that rate and reset
it if necessary on a retroactive basis. If Miami Beach refused to do this within a
certain period, the towns would then put them on notice that the Water and Sewer
Board will be requested to order Miami Beach to set a prospective rate. The towns
would then fight Miami Beach on the retroactive rate.
In reply to a question from Mr. Maley, Mr. Weil stated that it is his intention to
recommend to his Commission that North Bay Village remain the customer of Miami Beach
until the present contract between Miami Beach and the Water and Sewer Authority expires.
At that point, his city would seek protection on rates when the Authority is
negotiating with Miami Beach.
At the request of Bay Harbor Islands Vice Mayor Haas, Mr. Gold restated his concept
included in Mr. Gardner's motion as follows: To reject the offer that Miami Beach made
through Mr. Shevin, to counter -propose the offer represented by Rachlin & Cohen's letter,
to state that notwithstanding, Bal Harbour and Bay Harbor Islands may be more lenient if
our supply problem can be resolved through Metro as described today. We would propose
a date certain in the letter, after di.scussing this with Garrett Sloan, for the matter to
he brought before the Authority for a tri-party discussion between our two
communities and Miami Beach with the Authority. If, in fact, the matter cannot be
resolved by the Authority or through us and Miami Beach in negotiations, we would
then ask Miami Beach to contract with us on an expedited basis. We would accept
for the Purpose of the contract their 42C rate subject to our right to have the Water
and Sewer Board review that rate and retroactively reset it or prospectively adjust
it, and we would argue the retroactive issues before the Water and Sewer Board. If
Miami Beach refuses to enter into this contract, we would then put Miami Beach on
notice of our intent to petition the Water and Sewer Board to make Miami Beach serve
us and set a prospective rate.
Councilman Gardner asked Mr. Gold why his concept continued beyond simply contacting
Miami Beach with our counter-offer on the rate question. Mr. Gold stated that our
position with Mr. Shevin is that the paramount question, as far as we're concerned, is
the water supply issue, and under no circumstances would we allow Mr. Shevin to use
the supply "club" in order to hammer us into a settlement on the rate issue. He
therefore felt that Mr. Shevin should be informed as to the full thoughts of the Councils
of the communities involved.
On the motion made by Councilman Gardner of Bay Harbor Islands which was seconded by
Mayor Hale Printup of Bal Harbour Village, polled vote was as follows:
BAY HARBOR ISLANDS:
FOR AGAINST
Mayor Nelson
Vice Mayor Haas
Councilman Gardner
Minutes of the Joint Special Meeting of Councils held May 8, 1979 Page Five
FOR AGAINST
Councilman Kasdan
Councilwoman Levinson
Councilman Rauch
BAL HARBOUR VILLAGE: FOR AGAINST
Mayor Printup
Asst. Mayor Taplin
Councilwoman Gray
Councilman Krez
North Bay Village Attorney Joe Weil stated that it is his intention to write a very
short letter to Mr. Shevin adopting Mr. Gold's rejection of the Miami Beach offer and
adopting Rachlin & Cohen's position, stating that since North Bay Village has no interest
in the supply problem, this is the Village's position.
Commissioner Mitchell Potter of North Bay Village suggested that the towns' counter
proposal to Miami Beach be presented in terms of lump sum dollars as had been suggested
by Mr. Shevin. It was generally agreed this should not be a problem for Mr. Silverman
to calculate.
On the matter of the North Bay Village letter as suggested by Mr. Weil, the members
of the North Bay Village Council present at this meeting agreed with the proposed
wording as suggested by Mr. Weil.
The meeting then adjourned at 11:07 a.m.
ATTEST:
TOWN CLERK