20160914 AM1MIAMI BEACH
Gity Gommission Meeting
ADDENDUM MATERTAL 1 (911212016)
City Hall, Commission Chambers, 3'd Floor, 1700 Convention Center Drive
September 14,2016
Mayor Philip Levine
Com m issioner John Elizabeth Alemdn
Commissioner Ricky Arriola
Commissioner Michael Grieco
Commissioner Joy Malakoff
Commissioner Kristen Rosen Gonzalez
Commissioner Micky Steinberg
City Manager Jimmy L. Morales
City Attorney Raul J. Aguila
City Clerk Rafael E. Granado
Vlsft us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Ghapter 2, Article Vll, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the
registration of all lobbyists with the City Clerk priorto engaging in any lobbying activitywith the City
Commission, any City Board or Committee, or any personnel as defined in the subject Code
sections. Gopies of the Gity Code sections on lobbyists laws are available in the City Clerk's office.
Questions regarding the provisions of the Ordinance should be directed to the Office of the City
Attorney.
ADDENDUM AGENDA
R9 - New Business and Gommission Requests
R9 AI STATUS OF THE 2016 AIR & SEA SHOW EVENT / DISPUTE REGARDING REIMBURSEMENT OF
CITY EXPENSES.
Office of the City Attorney
Mayor Philip Levine
Addendum added on 911212016
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MIA&/\I BEACH
TO:
FROM:
DATE:
SUBJECT: STATUS OF THE 2016 AIR & SEA SHOW EVENT / DISPUTE REGARDING
REIMBURSEMENT OF CITY EXPENSES.
ANALYSIS
Atthe Ju|y20,2016 CityCommission meeting, the Mayorand Commission directed the City
Attorney to notify the Event organizer, A National Salute to America's Heroes, LLC ("Applicant")
of the City's position regarding the expense reimbursement provisions of the Agreement. The
City's August 11, 2016 conespondence to the Applicant, and the Applicant's August 25,2016
response, are attached hereto.
I am dissatisfied with the Applicant's response, as I do not believe the Applicant's response
accurately reflects the terms of its Agreement with the City. Accordingly, I am requesting that the
Administration finalize the estimate for Event-related expenses, transmit the final estimates to
the Applicant, and should the Applicant continue to refuse to pay its share of Event-related
expenses pursuant to the Agreement, authorize the Administration and City Attorney to pursue
all legal remedies that may be available to the City pursuant to the Agreement and Florida law
Leoislative Trackino
Office of the CityAttorney
Sponsor
Mayor Philip Levine
ATTACHMENTS:
Description
u Correspondence (City 0 -11-2016 and Applicant 0 -25-2016)
New Business and Commission Requests - R9 Al
GOMMISSION MEMOMNDUM
Honorable Mayor and Members of the City Commission
Raul J. Aguila, City Attorney
September 14,2016
Page 2100 of 2217
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*7010 0lg0 0s0? 46?26875
A Nstional Salui* t* Amer,ca's Hrrses, LLC
Michael l. Kctler, fi*q
5{ SW Boca Ratc* Boulevard
Escr Raton, Florida 33432
Be. Agraoment bstlrssn the Gity sf f,tiarni Beach, Florida {"City"l and A iletisnal Ssluta
To America'B Hsrs*t, LLG ( "Applicant"!, datad F*hruary 1, 201S {the "Agraemsnf'}
fcr Air & See $horv sYsnt {"Evant"} during f,iamorial Day tlVaekend
Dear fiJlr. K*tler:
This l*ttff respgnds to the recent communicairons between Micky Markoff, a representative of the
Applicant, and the City Manager, Jimmy L. Morales, rn connection with the respective obligations *f
the Applicsnt and the City fffr certain Ev*nt-related expenses for Folice, Fire, Ocean Rascue. and
Sanitatinn servrces under th* Agr*emenl Unless the context otherwise requiret, the capitaliz*d
terms hersin shall have the m*anings assigned lo ihem in the Agrg*ment
On Decarnber S, 2015, the Mayar and Crty Commission adopted Ci:y Resnlution No. 2015-19226,
approving the substantive lerms *f an agreemenl far th* prsduction *f th* Event. The Agreemenl
requiros the Applicanl to submit to the City, for it* review and approval, various plans with r*spect le
tne activation of the Evenl, and fLrrth6r nullines each party's responsibiltty for cosls and expen*es
associated with th* activation sf :he Event,
lmportantty, wiih ragard to reimbursemenl of Evenl-relatrd *xpenses for Poltce, Fire, Ocean Hescue
and $anitation s€rvices, $eclion 17 of the Agreenrenl pr*vid*s as follows.
BgIMEURSE{\iEHT OF EXPHN$ES. The Crty and Applicanl shall be responsible forth*
sosts and erp€ilsas as$octated wrth Fofic*. Ftre, Ocean Rescue. and San[ation
*ervicas within thx Evant Sit* and Event lmpact Area. as provided herein- Crty *hall be
raspon$ible fcr rnrtral exp€n$es up tc ihe amounts associated with l**rrrsrial Oay
Weeksnd for the imm*distely preceding calendar year, adjusted annually ftr eithar {1)
rlf6g* inereff*s$ for p*r*onnel for the fnregoing City deparlmpnls or f?) infation uiiliring
the united Stntas E!*reau o{ Labor Statistic$" Consumer Price lndex lor All Urban
Sonsilmers; U.S. City average {1982-84.'100}, nrhichev*r is lower (the "CiV's lnitial
Conlribution"). Applicgnt shall be responsible for all of Crty's costs and exp*nses tn
Bxcesa of the City"s Inttial Contribuiion. up to the maximum amount af SX*S,000
("Applicant's lnitial Ofintrlbution") Crty and Applicant lo each be responslbl* fcr S0
percent (S0%) of all eosts rn excess of Applicant's lnrtial C*ntrihutinn. Applicant *hall
Page 2101 ol 2217
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rsirnhur** City for any amounts due under thts Agreement lrvilhin fourlEen {14) days of
rBe$ipt cf any inrroice from City. Applicant shall have tha right t* requesl all supporting
d**umentniion with respact to chargea being btlled to Appli**nt under this Agreement.
City'* invoices shallinclude a breakdown nf charges-
ln July of 2016, Max Sklar. the Cig's Oirectarof Touri$m, Culture & Ecsnomic B*v*fopment, verbally
notifiad the Applicant of the Qi$'s initial estirnate of approximstely S1.5 million frr Event-related
expsnses in excass of City's lnitial Csntributian {as defined in $ection 17 of tlt* Agreem*nt} ol
epproxirnately S1.8 million"
ln respon*a, the Appllcant hxs taken ths pacilion that {1) the estimate provided by the City ir too
high: and (2) it intarFrets $ectisn 1? *f the Agreement in a manner that drarnatically limits
Applicant's responsibilitias undsr the Agr*ement and shifts costs to the City lhat th* City rl*ssr
agreed to undertake.
With reg*rd to the Applicant'a fimt positinn * its conlentiCIn that it believes lho e*tinn*ted costs are
too high * the Ciff has indicatod to the Applicant on various occasione lhal ths satimale i* extremely
prelirninary and for planning purpo$Bs only, a$ rc{ual costs for law enforsom*nt peruonnel and other
*xpsnrgs csn vary greatly depending on tha availabrlrty of law enfsrcamgnt personnel from other
locsl ag*nciss and sny number ol details thst still need to be developed with re*pect to the
Apptica*t'x Fubti* $afety Flan and th6 MOT Plan. To lhrs end, the Ci$ is committed to continuing to
wb}< witn th* Appticant tq devalop the budget and to refining the Estimate of cosls ag much as
possihl*, rryhil* ntill pl*nning for and providing the requrrad levetof publi**afety services necessary
lor en*ur{ng the Event's ultimate succa$s. The City rs curr*ntly in the process of ravisrng its
prelinrinary e$timstss, and Max Sklar will follow up with you s$ **on &8 vte hsve better information to
r*port"
With regard ta ttr* Applicant's s*cond positinn. th* City wholly roj**t* th* ABplicanfa
lnhrprctation *f tfir Agx*m*nt prnvi*lon* relating to reimbur:aamsnt of Event-ralst*d
sxpsnrss. As eei farth in $e*tion 17 above. and as explained to the Ci$ Cammisxion when it
adipted City Resolution N*. AS15-2S22S, apprnving the Agreament, the City commilted ts a shar*d
approacfr for Event-rolated *xpen*es in racrgnition thal lhe^Ci^ry has traditionally incuned substantial
exienses during Memnriel O*y we*ke*d {approximalely $L8 million), snd eome cf the exp€nses
thst urould be required for lhe hqnefit *f t** Air & $ea $how Evenl would overlap with the expans*s
the Citywould be incurring during Mrr*crialsayweekend Accordingly, in viowof this rstionals, the
City egrs€d to "be respsnsibl* for initial expanse$ up to the amounts associated with ildem*ri*l Ory
wEinenO for the irnmediat*ly preceding calendar year, " subject to a CPI adjustment. The Applicant
would thereafter be re*ponuible fcrthefirst $?S0,0CI0 in additionalcosts and nxpenses, and th* Ctty
and Applicant would aach theraaftar be responsible for 50% of all costs and expenses in excess
th*rssf. if any,
A* tfr* r.lnderxiqned under*tands it, th€ Applicanl ha$ tsken the posilion that S$ction 17 o{ the
Agre*ment xomahntv obligater the City to *pend douhla the amounl th* City rpenl on Memorial
Diy w**kend th* previous year. This interpretatiofi. that the *ity * tnitialConlribution is defined as
g*lxhl*tn* arnount* spsnt for Memorial Oay weekend, is belied bythe plxin language of Section 17,
wtrich nswh*re refl*c,tE any such formula. and is dir**tly *tlntra,:y t* all discussions with the
Applicent c*nc*m*ng sucfr ixpenses. s$ well as th* explanation of the reirnburs*ffient provrsrons
preivided to tha Gity C*mmission at public meeting* te which the Applicanl r,vs$ presant.
Page 2102 of 2217
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$incerely,
Li
lettt r lr.r ".{p6r/l'*:unt, ,,|ir r* -Teer .lhnu A'r'en,
.-{rgrxt I l, X}lfr
P*ge 3
ln view *f th* significant arnount of work that lies ahead with rssp*ct t* the planning of the Event.
the Sity submits it is in the parties' best interests fcr any drsput* a* to lh* terms of the contract to be
id*ntified os Boon as possihla. Accordingly, please r*spond in writing to the City, no later than
August *6. 3CI16, to confirm whether tho Applicant intends on cnmplying wrth the terms of $*ction 1f
of the Agreemsnt 6nd specifically, whalhar Applcant lntsnds to comply wtlh it$ re$ponsibility for tha
first $2S0,S00 of axp*nxes in exs*ts of the $1.8 million the City sp*nt tffstyearduring MemorialDay
wseksnd, as well as Applicanfs responsibility for 50Yo nf any cosls and e*pen*e$ incurred
thereafter, if any.
Flpasq be sdvlaod th*t, ax th* Apptrtrcenf* position with rerpoct to it* oblig*tisn* undsr
$ection l7 and willlngn*** t* psrtsrfi ir accordanco thelrof implicatoc * p**nnti*l
repudiatian of ths fundnmantal l*r:nx tll tha Agreemont" andror a d*fnult af &ppllexnfx
ohligation* undtr t}t* Agrasm*nt? the tity fully res*nlat all righb or rarnad*ac sfrurde{ t* tlr*
City, r*hathor confsrrod by the Agreoment or oiherwiaa by law.
Thank you for your coopsration in this mxtter. lf y*u have any questions ccncerning th* foregoing.
please feel free to oontact rne at your sonvenrence
I.J
i\ _w\-*/ a l*0,.
Raul J. Aguila
City Alterney
c:Jimmy L" Morals*, fi$ Manager
Max Sklar. Director, Tsurism, Culturc & Ec*nomre Oevalopment
Page 2'103 of 2217
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9s1 ]$) pllt xnwtfir C$ l; lt. n C8-J1.10't
COHEN T KOTLER
Attorneys at Law
Esublished 1984
14 SIS Eoca Rrton Baukr,tn . Boca B.aton, Flnrido t]*13 * Phuns 16l -3S I'e600 ' F{r; 561'361'9??Q
[-Mail: mt*Xl${$cshEfi kd,rtcr.ecil} 18ch: rntw.C.$,h$r*totl*($om
*d*,lrrl B. Cokm'Dsvid (. Kol.l*r " Miclwcl I' l(oli*r'
"Alxo rdmined in Si*,triei rf C.olumbic *nd Fuxrylrtoia
Ar:g3tt 35':illS
gtat,Vi$ sa**lmlls t{l${f) $?}*It$fu$"**
Srsulrr l{sil
Ciry of Mi*mi B*ach
0lficr of the City Attorncy
Attn: Raul J. Aguila, CitY &u*rneY
I ?00 Convcnticn CcnlEr Drivc
Miamr Beach. Florida 331 l9
Re: A Narialrsl Salurc tr Amffica's Hcmcs. LLC/City of Miami Beach, Florida {"Cily"}
Our Frl* No: 36-5S]'31
Dcar Mr. Aguila;
Thsnk yru f,or fbnrnrding your lstt*r of August I l . l0 16. Finl, let rne as$urs y*:u thni emr
elient in no t*ay is rcpudiuting the *gf*rrn$$1. Yuu hatc essenlially raiscd n*t} i*su*r in ynur
t*ncr. ThE first rcl*ter tr: thc umuu*ts the f;ify nnticip*tns lncumng for [ve*t' rclat*tl r:xpec${$' Sur
clisrf believc$ thar thr nwnkr s$tifiist*d by thc Ciry t* b* hrgh. lYe u* c$itlsd rr drsagrt* ** th*
e*tirnatrd nurrhrr, nnd ars *$*ryaltt*ri tu r.*rising and telinrrlg thc *stimatr:s {'ittr Ih* v*rie*t rcrvier
provid*rs ln an cffnrt to &et lo rmounts which tx*ft **curat*ly r*{lect am{}&nt$ t}mt *ue fi{}nsistsBt
*itl, **gntr af this rlh$rrc nrhich *ur elier* hxs pradueed f*r many ymrs. In &3:I eY*rlL *sr *lieniv
efftrts in lhat r*gar$ t* bri*g tfu*sx eiry **r'rirex in tn line with amount$ cnnsirtrnt wi*l th* paxt
cxp*icncc of aur clisnt in prcdurixg r**r+s {xf this sirr: will benefit sfbCIth rhu City und aurqliunt"
The sccond issue raital in y-our l*ltsr rolsits lo *'ho is respcrrsiblc fcr rxpen.*€t **snetut*tl
uith Police, Fire, Ocesn &nseuc qnd Sanit*tinn r*rvires $'ilhrn thc Slmt $ttc rnd [vent lrnpa*t
Arua. lV* bclie v* rhat it wm rlwey* the intxndsn ofthe ptnics that tht City be responsibk for initi*l
cxpensc$ up to lhe arncg$i$ ss$ocielsd wirh ltlmrronal Day lYtchcnd for thc rrnmediatcly prccx*ling
eaicndar ycar. The tiry is oblignrcd hy itr cgrremcnt to pay for the initral rxpenscs fnr tht Folics,
Occan Resruc and $snitstiun suryieen within the Evcnt Site and Event lrnpnet Arca. Ts ths extent
ti.llqN.*tl'lX *l -su,{r$.f$}Y1d} tlats Asi l' r.l I :, 13 rfil
Page 2104 of 2217
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561 l$l 9rl0 S(he.n{:09:36:l0r.n. e8-15-30:& , J3
Irtter tn Cirya/Miaa.i Beach
$lfir* afih* Ciry ntfirney
ilrn.' "fisrj, J. ,{grrilr, City Arrorney
lugrert "?J, .?f ,d
?age 2
that thr Ciry speut $t,80S,0$0.00 for such services in the prior ycar, thc City is contrac$ally
obligared to spend up to th*t flrlount for thosc serYice$ rclating to lhe Evcnt Sitc and Eve*t Inrpnct
*rea rhir ycar. Our clicnt stands rcdy to unde*ake its responsibilitics for any cxtcss amourts in
accordance with the Agtrcem*nl.
Ultimatcly, if thc expenses cflhe Svenl are brought in to line rvith what they should be, based
on our clients past experiencc in running cven$ of this nsturc, therc should be no issue with respt*r
to additional expenses bcyond what the City prid over Memorial Day lYeeksod for *re preccding
calend$ yiar. Our clieat will continuc to cndeavor to wurk througb lhe issu* wi& pu rnd to
produce a lirst class evert which will makc Miarni Eeach proud to be hosting a National Salute to
Arnrrica's Hcroes.
$nujk
cs: elient
Vcry auly yourq
u'e.**xrJ(Srf it taUl^txo}ncrrs, r,lm t<*t' Itt ' I :t ti ttrl
Page 2105 of 2217
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