Loading...
Resolution 81-16594 RESOLUTION NO. 81-16594 A RESOLUTION BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING THE SETTLE- MENT OF CERTAIN OUTSTANDING CLAIMS BETWEEN FOOD MANAGEMENT ASSOCIATES AND THE CITY OF MIAMI BEACH. SECTION 1 As more specifically described in the attached letters and Agree- ment, the Administration and the Legal Department have determined that it is in the best interests of the City to settle certain out- standing claims and counterclaims which exist between Food Manage- ment Associates , and the City of Miami Beach; SECTION 2 The Commission has reviewed the Agreement and the supporting letters and has been advised by the Manager and City Attorney that such set- tlement is in the best interest of the City; Section 3 THEREFORE, IT IS RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that it hereby ratifies and affirms the Set- tlement Agreement under which Food Management Associates shall pay the City of Miami Beach $27 , 411. 83 on or before March 2 , 1981 , and that in consideration therefor , the City of Miami Beach shall not pursue those claims against Food Management Associates which are in the attached exhibits, provided however , that the City shall retain the right to pursue any claims against Food Management Associates which arise or have arisen subsequent to December 31, 1980, from au- dits or other investigations of the City of Miami Beach, even if for monies due from before December 31, 1980 . PASSED and ADOPTED this 4th day of March, 1981. Mayo ATTEST: City Cler APPROVED LEGAL DEPT. v 0§1.011int JAR:ab X 3/17/81 OFFICE OF THE CITY ATTORNEY-1700 CONVENTION CENTER DRIVE -MIAMI BEACH,FLORIDA 33139 r + r e I Avid 7yead F L O R I D A Bf;C' ;r *ki�coa►` .o* JOHN A. RITTER h, CITY ATTORNEY .•'C ‘°/ TELEPHONE :673-7470 COMMISSION MEMORANDUM NO. DATE: 18 February 1981 TO: Mayor Murray Meyerson and Members of the City Commission City Manager Harold T. Toal FROM: John A. Ritter City Attorney SUBJECT: ZIMMERMAN (FOOD MANAGEMENT ASSOCIATES) SETTLEMENT AGREEMENT After lengthy negotiations between Food Management Associates (the Convention Center concessionaire) and the City Manager and Legal Department, the parties have agreed to settle all claims and coun- terclaims existing as of December 31, 1980. The basis for the settlement is that Food Management Associates will pay the City, on or before March 2, 1981, the sum of $27,411. 83. It should be understood that the settlement does not waive any City claims which may arise (or have arisen) from audits or other disputes or investigations occurring after January 1, 1981. Subject to this proviso, I recommend Commission ratification, by oral resolution, of the Food Management Associates settlement. JAR:TMP:ab T AGENDA ITEM --/o DAT E SETTLEMENT AGREEMENT IN FULL and COMPLETE SETTLEMENT of all claims and counterclaims existing between the City of Miami Beach and Food Management Associates as of December 31, 1980, Food Management Associates agrees to pay the City of Miami Beach $27 , 411. 83 on or before March 2 , 1981. In further consideration therefore, upon receipt of such money, the City Attorney agrees to seek a Declaratory Statement from the Florida Department of Revenue, as specified in the City' s letter of January 7 , 1981, a copy of which is attached hereto: Further, the City Attorney and the City Mana- ger agree to place on the agenda for the first Commission Meeting in February, for Commission consideration, payments to Food Manage- ment Associates arising from the City' s Circus Contract, and the City Manager agrees neither to support nor oppose Food Management Associates ' request in such matter. AGREED to this J `, day of r'� ; �, �t �l,, , 1981 . FOOD MANAGEMENT ASSOCIATES CITY OF MIAMI BEACH • JOHN A. RITTER City Attorney �. Oscar Zimmerman President ., LCL 7 Witness Witness Sworn to and subscribed before me this ._1" ' day of, `'. �-,, '-- , 1981. j/;" `Notary Public - __ 7 My commission expires : NOTARY POLI r S7'.is 0 cLOL IDA AT l&J P/ C( EAP I!►,ES APR. 81 •dON1)C) :F.N.R41 +t'! +,JND9R•r.'' r�t, 3 OFFICE OF THE CITY ATTORNEY - 1700 CONVENTION CENTER DRIVE -MIAMI BEACH,FLORIDA 33139 • 7 + I • i r • • • OFFICE OF THE CITY ATTORNEY 64 S jaid(•ani Mich • F L O R I D A * we a. ni JOHN A. RITTERs r�9`�':. TELEPHONE :673-7470 ,�,N CITY ATTORNEY 2b November 14 , 1980 Mr. Oscar Zimmerman, President Food Management Associates 1700 Washington Avenue Miami Beach, Florida 33139 Dear Mr. Zimmerman: The City of Miami Beach is pleased to have reached an amiable resolution of existing differences. In full, final and total settlement and satisfaction of all claims by FMA and the City of Miami Beach, each against the other, FMA agrees to tender forthwith to the City of Miami Beach Twenty Five Thousand, Nine Hundred Eleven and 82/00 ($25, 911.82) . The City anticipates both an expeditious tender and- a continuation of cordial business relations. Very truly yours, Jo n A. Ritter City Attorney JAR/G T/mp • OFFICE OF THE CITY ATTORNEY ty(Ja. • evadi F L O R t • D A /1 8(4 JOHN A. RITTER TELEPHONE :673-7470 CITY ATTORNEY October 24, 1980 Mr. Oscar Zimmerman, President Food Management Associates _ 1700 Washington Avenue Miami Beach, Florida 33139 Dear Mr. Zimmerman: Pursuant to your October 13, 1980, communication, the City of Miami Beach responds as follows: 1. Liquor License The City accepts your computation of $4, 962. 50 as liquor license fees due FMA. 2. The City accepts FMA's offer io tender 23. 5% of a . $9,750.85 check received from Clambake. It further reaffirms FMA's right, as an enterprise distinct and independent of the City of Miami Beach, to formulate business policies not inconsistent with its obligations under contract with the City. - - 3. Florida State Sales Tax As of Monday, October 20, 1980, FMA' s sales tax liability is $34 , 582.88. 4. Resort Tax The City accepts FMA' s computation regarding resort tax. An amended invoice shall be forthcoming. • 7. Price Increases The plain meaning of the language concerning "Prices and Price Changes" , appearing on page 22 of the parties' con- tract does not admit to your interpretation thereof. The contract states as follows: 5 • "Any requests for changes in prices after the initial price assignments must be formally submitted in writing to the City, at least 30 days prior to the requested effective tate, for' approval. . ." This language clearly establishes FMA's duty to "formally submit in writing" requests for changes in prices. No obligation is imposed thereby upon the City to approve or deny this request within that period. While the City will attempt an expeditious reply, your interpretation of the language as imposing the duty of a thirty (30) day response upon the City is incorrect. The position of the City regarding paragraph 7 remains as stated in its letter of September 29, 1980. 8. Free Samples The City win, exercise reasonable effort to ensure that lessees distribute only sample size food and beverage. While the City will immediately investigate FMA' s complaints in this regard, constant survei l ance by the City is beyond both the mandate of contract and the reasonable expectation of FMA. ( 9. Closing Concession Stands Regarding " Suspension of Operations" , page 13 of the parties' contract is clear and unambiguous :. "The concessionaire will be required to suspend or modify operations upon the request -- of any lessee through the Convention Center director, when it is in the best interest of the lessee that such operations be excluded or in compliance with the terms of an agreement - between the City and a lessee." FMA' s interpretation of this language, as asserted in its October 13, 1980 letter is clearly improper. The position of the City regarding the closing of concession stands remains as stated in both the contract and its letter of September 29, 1980. • • _2_ 6 • • S 10. Circus The administration will facilitate FMA's appearance before . the Commission in this regard and will .not oppose commission , award of compensation to FMA. ( ' The preceding is an offer of settlement and does not consti- tute the official position of the City of Miami Beach. An action at law will be filed in the court of appropriate jurisdiction on November 15, 1980, in the absence of a satisfactory settlement. Very truly yours, P--jt366/1' .• . : Jo n A. Ritter City Attorney JAR/GT/rr •-3-- - I 7 ♦ OFFICE OF THE CITY ATTORNEY exc jz,,, vela:0i F o R I D A frir oar. JOHN A. RITTER CITY ATTORNEY .'7�C k26 TELEPHONE :673-7470 • September 29, 1980 Mr. Oscar Zimmerman, President Food Management Associates 1700 Washington Avenue Miami Beach, Florida 33139 Re: Settlement of Disputes Between Cit and FMA Dear Mr. Zimmerman: The City is interested in settling the many disagreements had over the Convention Centerg we have and, therefore, offers to make one package settlement by doing the following: 1. Liquor License The City will pay FMA one half of the liquor license paid, or $4, 875. q fees 2. Percentage due on Clambake Inc. FMA will pay the City its 23.5% of the $9, 750. 85 check received from Clambake, Inc. , or $2, 291. 45. 3. Florida State Sales Tax Pursuant to Page 35 of the Agreement , concerning "Ta in g xes , FMA will pay the City $22, 500 back taxespaid • by the City, and FMA shall continue to charge customers for and pay all sales taxes as they become due. 4. Resort Tax The City acknowledges that FMA has already settled payment of $2, 400. Y this by 5. Additional Rent Shown by Audit The City will waive its claim for $3, 030. 77 due from FMA m as shown in the August 1977 audit . 8 • Mr. Oscar Zimmerman, President Food Management Associates September 29, 1980 Page Two 6. Fire Sprinklers The City will pay FMA $6, 000 for its installation of fire sprinklers. 7. Price Increases To comply with the terms of the contract by submitting to the Convention Center Director for prior written approval all price increases for concession items. The Director shall approve or deny in writing days 45 da s or the ' increase will go into effect. 8. Free Samples The City will exercise its best efforts to enforce the provision that only "sample-size" food and beverages are distributed by Lessees as provided on Page 13 of the parties ' Contract. 9. Closing Concession Stands While the Contract requires the concessionaire to "suspend or modify operations upon the request of any Lessee. . . " the City will use its best efforts to persuade Lessees to allow concession operations to remain open. 10. Circus The City acknowledges that FMA has withdrawn its appeal in the lawsuit over payments due FMA because of the Circus. The City Administration recommends that FMA present its position to the City Commission by placing the matter on a Commission Agenda. The bottom dollar line of the foregoing ten (10) items is that the City will accept a net sum from you of $13, 916. 45. If this is acceptable to you, please sign the enclosed copy of this letter and return with your check by October 15, 1980. • S i; r • • • • •, Mr. Oscar Zimmerman, President Food Management Associates September 29, 1980 Page Three I must , emphasize that this is only a settlement offer and that in the event this matter is not settled, the City will not concede or waive any of its rights in the foregoing items. I must further inform you that in the event this matter is not settled, the City intends to proceed legally under Page 32 of the contract to cancel the .agreement and notify you to vacate. Yours very ruly, ' i / () (TC114-1 �t• c'� John A. Ritter City Attorney JAR:el Agreed and Approved: FOOD MANAGEMENT ASSOCIATES By: ORIGINAL RESOLUTION NO. 81-16594 (Approving the settlement of certain out- standing claims between Food Management Associates and the CMB) t