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OFFICE OF THE CITY MANAGER CITY HALL
HAROLD T.TOAL '700 CONVENTION CENTER DRIVE
CITY MANAGER TE:sEFHONE: 673-7010
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COMMISSION MEMORANDUM NO. Lati
DATE: 6/3/81
TO: Mayor Murray Meyerson and
Members of the City.Commission
FROM: H o 'oaf
City Manager
SUBJECT:
TENTATIVE WATER RATE SETTLEMENT BETWEEN THE CITY OF M I AM I
BEACH AND THE TOWN OF SURFSIDE.
For approximately five years the City of Miami Beach and the Town
of Surfside have been in contention over the amount of money owed
the City of Miami Beach for water supplied to Surfside.
The attached Settlement of such dispute was approved by Surfside at
its last meeting. Said Settlement is essentially the same as the
one entered into between the City of Miami Beach and Bal Harbor and
Bay Harbor.
The proposed agreement must be executed by Surfside, Miami Beach
and the Miami Dade Water and Sewer Authority. It is designed to
supercede the existing water supply contract of June 24 , 1957 and
to establish new terms and conditions of continued water supply
from the date of the execution of the contract until the proposed
termination date of June 24 , 1987. In addition, the agreement
seeks to resolve the ongoing dispute between the City of Miami
Beach and Surfside regarding payments for water services rendered
under the existing contract.
In settlement of all prior litigation between Surfside and the City
of Miam' Beach through January 1, 1981, Surfside will agree to pay
the City of Miami Beach the sum of One Hundred Forty-seven Thousand
Two Hundred Sixty-five and 56/100 Dollars ($147 ,265. 56) in the fol-
lowing manner :
$24 ,000 . 00 on October 15 , 1981; then on October
15 , 1982 , eight per cent (8%) of the unpaid
balance plus $24 ,000. 00; on October 15 , 1983
8% on the unpaid balance plus $24 ,000 . 00; on
October 15 , 1984 , 8% on the unpaid balance plus
$24 ,000. 00; on October 15 , 1985 , 8% on the un-
paid balance plus $24 ,000. 00; and finally on
October 15 , 1986 , 8% on the unpaid balance plus
the unpaid balance.
For the period from February 1, 1981, to the
day of contract execution, a lump sum payment
of the difference of twenty-five cents per
1,000 gallons of water use paid by Surfside to
Miami Beach and 140% of the rate per 1,000
gallons paid by Miami Beach to the Water and
Sewer Authority for water purchases shall be
paid to Miami Beach upon signing of the con-
tract.
AGENDA 3
ITEM
DATE
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COMMISSION MEMORANDUM NO. #.
June 3 , 1981
Page two
ADMINISTRATION RECOMMENDATION
The Administration recommends the approval of the resolution
authorizing the City Attorney and the Administration to proceed to
prepare a final contract upon the terms and conditions set forth
above and contained in the attached draft Settlement. We will pre-
sent the contract for Commission approval in July, 1981.
HTT/LTA/mp
Encl.
%J L L J J_L E1JJ
RESOLUTION NO. 81-16680
(Approving a proposed settlement of Water
Rate litigation with the Town of Surfside
subject to submission and execution of
final contract between the CMB, Town of
Surfside and the Miami-Dade Water and
Sewer Authority)
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