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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