Correspondence re Contract Indian Creek Village F L :O R I ® A 3 3 :1 3 9
"VACA TIONLAND U. S. A."
CITY HALL
ELAINE MATTHEWS 1130 WASHINGTON AVENUE
CITY CLERK
TELEPHONE: 673-7411
June 20, 1974
Mr. Thomas C. Britton
Tenth Floor First National Bank Building
Miami, Florida
Subject: Contract between City of Miami Beach and
Indian Creek Village, water service
Dear Mr. Britton:
Receipt of your letter of June 19, 1974, is acknowledged.
This matter will be discussed with the City Attorney
prior to any action being taken by me to have the agree-
ment executed, as I do not have information as to the
date of commencement of the agreement, nor do I have
his approval to proceed.
As soon as disposition can be made, we will advise you.
Yours very truly,
J
Elaine Matthews
City Clerk
cc. Mr. Joseph A. Wanick
Mr. John Bergacker
Mr. Frank Spence
SHUTTS & BOWEN
ATTORNEYS AND COUNSELLORS AT LAW
TENTH FLOOR FIRST NATIONAL BANK-BUILDING FRANK B.SHUTTS
(1870-1947)
MIAMI,FLORIDA 33131 CRATE D.B O W E N
(1871-1959)
TELEPHONE(305) 358-6300
CABLE ADDRESS"SHUTTSBO"
June 19, 1974
Mr. George Heinold
Assistant City Clerk
City of Miami Beach
City Hall
1130 Washington Avenue
Miami Beach, Florida
Re: Contract between the City of Miami Beach
and Indian Creek Village for the rendition
of water service by said City to said Village
Dear Mr. Heinold:
In October 1972 your predecessor forwarded to the
Village Manager, Indian Creek Village, the subject contract.
I attach a copy of the letter of transmittal. The contract had
been authorized by the Miami Beach City Council on September 20,
1972.
The then Village Manager has left the Village and in a
review of pending matters we have learned that evidently no
response was made to your letter.
The Village Council of Indian Creek Village at its meeting
of June 11, 1974 authorized the Mayor to execute and deliver the
subject contract. I enclose the executed contract with our sincere
apologies for the extraordinary delay. I hope that the City of
Miami Beach can complete the execution of the contract and place
it in your file s.
v'
t
i
Sg3UTTS 8e BOWEN
Mr. George Heinold
Assistant City Clerk
Page Two
June 19, 1974
An engineering study conducted by Indian Creek Village
some months ago made it appear that construction of the necessary
connection by Indian Creek Village probably could not be justified
economically at this time. However, it appears possible that it
may be necessary and feasible for us to avail ourselves of direct
service from the City within the next year or two and we wish to
keep this option open to us by signifying our acceptance of the
contract authorized by the City Council.
We greatly appreciate the courtesy and assistance given
us by Mr. Be rgacke r and the City Council.
Sincerely,
Thomas C. Britton
TCB:mc
Enclosures
cc: Honorable Fred R. Fehlhaber
Mayor, Indian Creek Village
Mrs. Helen C. Stahl
Village Clerk
v° r.-
J
October 10, 1971-
Mr. Stephen Derry ,
Village Manager �
Indian Cree€, Village R'
54 Indian C reek i s l aind
Miami Beach, Florida
subject: Contract between the City of Miami Beach and
Indian Creek Tillage for the rendition of
grater service by sald City to said Village
Dear M rr Derry:
FollvwIng up our conv rsat€on this Date to are enclosing two copies of
the captioned agreement w--h i ch was app roved by the Miami Beach City
Council on September 20, 1972.
After your off I c i a l s have executed the ag rewen is please forward them
to th i of�:i b F� 7%d we �4 i 1 1 haEf_; thc�4 �}:eccuted by the klayJor and the
City Clem.. if them are any questions e-s to content please contact
_ Mr. John Dergacker, Public 'dorms D1 re`tor.
On September 25,, 19721 the City CounclI approved an limr°ease In water
rates as ref I ected In Ordinance lio, 1936 att1 he-d,
Yours very t 1 u l y:
Lurana pohzehl ,
i
Assistant Cit y Clerk
cc. Mr. T4-omns Britton �'.. _ SRUT S` O `
EN
Mr, John Bergacker
CITY OF MIAMI LEACH
i
TO: Ms. Elaine Mathew. �� DATE: July 1, 1974
L
FROM: John Bergacker�\
SUBJECT: Contract between, City,_of--M:t Beach and
Indian Creek Village, water service
I have your letter dated June 20, 1974 to Mr. Thomas C. Britton
regarding the subject, and, after reviewing the proposed -contract
I find that the water rate of 25�- per 1,000 gallons to be charged
to Indian Creek Village is no longer an appropriate rate as the
City- Council has changed the rate since the time of drafting the
Agreement.
JB/r
Attachment
cc : Mr. Joseph A. Wanick
CITY OF MIAMI BEACH
TO: Ms. Elaizie Matthews . DATE: July, li 1974
FROM: Jahn :Be�cga.cker
SUBJECT: Contract.'between. City, of Miami Beach ;and ;
Indian Creek Village, water service
I have your letter dated June 20, 1974 to Mr.. Tho s C. Britton
regatding'-the :sub eta end; sfter : evie .xag the propQSad contract
I.: find...-that the 1 crater rate of 2UP .per I-000- gallons, �to, be �h�rged
to Indi 3n Creek village is no longer an appropriate ,-rate as the
City .Council -has changed :the rate -.since the- time -of-,drafting the
Agreement.,'
Attachment
cc: Mr., Joseph A. Waniok
F L O R I D A 3 3 1 3 9
"YACA TIONLAND U. S. A."
.H �,li ..SFr' ..�1��� �/•' E;1 CITY MALL
ELAINE MATTHEWS `` ,/ 1130 WASHINGTON AVENUE
CITY CLERK i ��g/ TELEPHONE' 673-7411
June 20, 1974 By
Mr. Thomas C. Britton
Tenth Floor First National Bank Building
Miami, Florida
Subject: Contract between City of Miami Beach and
Indian Creek Village, water service
Dear Mr. Britton:
Receipt of your letter of June 19, 1974, is acknowledged.
This matter will be discussed with the City Attorney
prior to any action being taken by me to have the agree-
ment executed, as I do not have information as to the
date of commencement of the agreement, nor do I have
his approval to proceed.
As soon as disposition can be made, we will advise you.
Yours very truly,
r
Elaine Matthews
City Clerk
cc. Mr. Joseph A. Wanick
Mr. John Bergacker
Mr. Frank Spence
o • •
F L ® R I ® A 3 3 1 3 9
*tlHCOae otUlfl* .,
h
"VACATIONI_AND U. S. A. -
�9P H 26°
CITY HALL
ELAINE MATTHEWS 1130 WASHINGTON AVENUE
CITY CLERK TELEPHONE: 673-7511
I
October 10, 1975
Mr. Fred R. Fehlhaber, Mayor
Indian Creek Village
50 Indian Creek. Drive
Indian Creek Village Florida 33154
Dear Mr. Fehlhaber:
We are enclosing a certified copy of Ordinance No. 75-2046,
establishing rates to be charged to municipal purchasers of
water supply from the City of Miami Beach, as well as rates
to be charged non-municipal customers of Miami Beach.
This ordinance. was enacted by the Miami Beach City Council
on October 1, 1975, as an emergency measure and provides that
the new rate shall be effective as of November 1, 1975.
Yours very truly,
44U4:Ao $WZ44000
Elaine Matthews
City Clerk
cc. City Manager
City Attorney
Public Works Director
Finance Director
i
CITY OF MIAMI CH
Elaine Matthews
TO:
John Williams DATE: 8-29-74
John Bergacker
FROM:
SUBJECT: PROPOSED AMENDMENT TO WATER RATE
REQUIRING CONTRACTS FROM OUTSIDE
MUNICIPALITIES.
FOR YOUR INFORMATION.
THIS ITEM WILL BE PLACED ON THE
SEPTEMBER 4TH. 1974 CITY COUNCIL AGENDA.
Dodd A. Southern
Enclosure
r
CITY OF MIAMI BEACH �
2 9 PH 1 15
TO: Mayor, City Council, and DATE: August 29, 1974
City Manager
FROM: Joseph A. Wanick, City Attorney
SUBJECT: Proposed Amendment to Water Rate Requiring Contracts
From Outside Municipalities
As the City Council knows, this City has been engaged in pro-
tracted litigation with North Bay Village, Bal Harbour,, -- and-
Bay Harbor Islands, about the City's water rate ordinance
which fixed a rate of 41¢ a 1,000 gallons to City residents
and 33¢ to the said municipalities.
The case was tried before then Circuit Judge Raymond Nathan.
Judge Nathan refused to be impressed by the absurdity of a
lawsuit brought by outside municipalities who were being
charged 8¢ a 1,000 -gallons less- than .the residents of this City.
However, the City was very fortunate to have as its expert
witness Mr.. -Thomas J. Merlo, a Certified Public Accountant and
Public Utility expert, whose testimony on behalf of the City
was absolutely superb. He testified not only that the 33¢ rate
was reasonable, but that the City- would have been justified in
charging even a higher rate.
At the conclusion of several days ' trial, Judge Nathan held:
1. That these other municipalities are so-called "third party
beneficiaries" of this City's contract with the City of
Miami for water supply, and therefore, - this City must sell
water to the municipalities. In my opinion, this ruling by the
Judge is wrong and contrary -to all precedent.
2e That the ordinance fixing a 33¢ rate to the outside municipal-
ities was unreasonable for the sole reason that it was adopted
by the City as a revenue .measure. However, Judge Nathan said
that the City could call a public hearing for the purpose of
determining a reasonable rate and it could well -be, so Judge
Nathan expressly stated, that following such public hearing the
City could establish a rate much higher than the 33¢ rate. In
my opinion, it is the established law that a municipally owned
water system, owned and operated for the benefit of its residents,
is entitled to make a substantial profit on the sale of water,
whether to its own residents or to outside municipalities. .It
is therefore, -again. in my opinion that Judge Nathan is in error.
r-
CITY OF MIAMI BEACH
TO: Mayor, City Council, and DATE: August 29, 1974
City Manager
FROM: Joseph A. Wanick, City Attorney
SUBJECT: Proposed. Amendment to Water Rate, Requiring Contracts
From Outside Municipalities.
Page Two.
However, Judge Nathan did dismiss the additional claim of
these municipalities that they are entitled to recover an
alleged overcharge by the City totaling approximately
$70,000. 00, because by an alleged finding made many years
ago by a previous water system supervisor of this City, that
a proper rate to charge outside municipalities would be 250 a
1,000 gallons. An appeal is being taken of these rulings by
Judge Nathan and I am confident that his orders will be
reversed.
However, since this appeal may be time-consuming, I am
recommending :.to the City Council the adoption of a proposed
ordinance attached hereto which will, after a date to be fixed
by the City Council, prohibit the sale of water by this City
to outside municipalities except pursuant to a contract
fixing rates recommended by the City- Manager and approved by
the City Council. This will enable this City to receive from
outside municipalities the reasonable return which the City is
lawfully entitled. and which will prevent outside municipalities
from profiting on the capital investments and operating expenses
made by this City in the construction, operation, and maintenance
of its water system.
The adoption of this proposed ordinance will be strictly in
accordance with the law, and will not be violative of any of
the orders entered- in this litigation.
JAW:pc
Attachment
2 _