HomeMy WebLinkAbout2006-26134 ResoRESOLUTION NO. 2006-26134
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDING, IN THE
AMOUNT OF $339,446.56, FROM THE AMERICAN GOLF SETTLEMENT;
$75,000 TO BE MADE AVAILABLE TO COMPLETE THE ENVIRONMENTAL
REMEDIATION AT THE MIAMI BEACH GOLF COURSE CONSTRUCTION
PROJECT, AND $264,446.56 TO BE APPROPRIATED TO FUND THE
ADDITIONAL ENVIRONMENTAL REMEDIATION REQUIREMENTS FOR
THE NORMANDY SHORES GOLF COURSE PROJECT.
WHEREAS, from 1986 to 1996, American Golf Corporation (AGC) operated and
maintained the City's golf courses under a management agreement; and
WHEREAS, towards the latter end of that time pedod, the City became aware of
enforcement actions by the Miami-Dade County Department of Environment Resource
Management (DERM) concerning environmental conditions at the golf courses; and
WHEREAS, DERM had issued certain Notices of Violation (NOV) for contamination at
the Miami Beach Golf Course and the Normandy Shores Golf Course; and
WHEREAS, after extensive negotiations with DERM, the City agreed to limited
remediation of the golf course maintenance areas, and undertook such remediation to precede
the renovation of the golf courses; and
WHEREAS, in 2004, the City filed an action against AGC in the United States District
Court, Southern District of Florida, Miami Division, styled City of Miami Beach v. American
Corporation of California, Inc., Case Number: 04-22607, seeking cost recovery for alleged
environmental contamination at the Bayshore (Miami Beach Golf Course) and Normandy
Shores Golf Courses, under state and federal environmental statues; and
WHEREAS, AGC denied the allegations contained in the City's Complaint and alleged
certain defenses to the City's claims; and
WHEREAS, the parties engaged in mediation in early August 2005, but failed to reach an
agreement and subsequently, AGC submitted a settlement offer, without admission of liability,
which was considered by the City Commission, in attomey-client session on September 8, 2005;
and
WHEREAS, pursuant to direction from the City Commission, the City Attorney's Office
and outside counsel engaged in further negotiations with AGC, which resulted in the final
settlement agreement submitted to the City Commission on October 19, 2005, whereby the
parties agreed to resolve all disputes which may exist between them rather than continue with
the litigation; and
WHEREAS, the Settlement Agreement, executed on October 19, 2005, caused AGC to
pay the City a total of $375,000; and
WHEREAS, on January 11,2006, $35,553.44 was appropriated from the Amedcan Golf
Settlement to provide for Hydrogeologic Consulting Services for the Miami Beach Golf Course
Club Maintenance Building, in order to comply with the permit requirements imposed by
Department of Environmental Protection (FDEP); and
WHEREAS, City staff hereby recommends that $75,000 from the American Golf
Settlement now be appropriated to finish the additional environmental remediation at the Miami
Beach Golf Course Project which may be necessary pending the results of the Reasonable
Assurance Report required by Florida Department of Environmental Protection (FDEP); and
WHEREAS, City Staff also recommends that $264,446.56 now be appropriated to
address additional remediation required by FDEP / DERM for the Renovation of the Normandy
Shores Golf Course Project.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize
and appropriate funding, in the amount of $339,446.56, from the American Golf Settlement to be
made available to complete the Miami Beach Golf Course Project, in the amount of $75,000,
and Normandy Shores Golf Course Project, in the amount of $264,446.56.
PASSED AND ADOPTED this
~ R
CITY CLERK
Robert Parcher
~h day of
T:V~GENDA~2006~nar0806~RegularV~med~n Golf Resolution 3.08.06 .doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City A~ Date
Condensed Title:
COMMISSION ITEM SUMMARY
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, to appropriate
$339,446.56 from the American Golf Course Settlement, $75,000 to be appropriated to the environmental
remediation required by FDEP at the Miami Beach Golf Course project and $264,446.56 to be
appropriated to address additional environmental remediation required by DERM at the Normandy Shores
Golf Course Project for a total appropriation of $339,446.56
Key Intended Outcome Supported:
IEnsure well designed quality capital projects.
Issue:
Shall the Commission appropriate the funding from the American Golf Course Settlement to complete the
Miami Beach Golf Course and the Normandy Shores Golf Course project to fund environmental
remediation at the golf courses required by FDEP / DERM?
Item Summary/Recommendation:
The Settlement Agreement between the City of Miami Beach and American Golf Corporation (AGC) was
executed on October 19, 2005 which required AGC to pay the City of Miami Beach a total of $375,000. On
January 11, 2006, $35,553.44 was appropriated from the American Golf Settlement to provide for
Hydrogeologic Consulting Services for the Miami Beach Golf Course Club Maintenance Building in order to
comply with the permit requirements imposed by the Department of Environmental Protection (FDEP).
City staff recommends that $75,000 from the Settlement be appropriated to finish the environmental
remediation at the Miami Beach Golf Course project which may be necessary pending the results of the
Reasonable Assurance Report required by FDEP. In addition, City Staff recommends that $264,446.56 be
appropriated to address additional remediation required by DERM for the Renovation of the Normandy
Shores Golf Course project.
Advisory Board Recommendation:
N/A
-'inancial Information:
~ d~: $339,446.56 011-8000*36999(Misc Revenue)
~ From American Golf Settlement
~ ::::T~i: $339,446.56
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
I Graciela Escalante, Senior Capital Projects Coordinator
n-Offs:
T:~AGEI
ular~American Golf Commission Summary 3.8.06.doc
MIAMIBEACH
AGENDA ITEM
DATE
C7c--
MIAMIBEACH
¢i~ of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor David Dermer and Members of the City Commission
J°rge M' G°nzalez' City Manager 1 ~v"C-0'""/March 8, 2006
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDING, IN THE AMOUNT
OF $339,446.56, FROM THE AMERICAN GOLF SETTLEMENT, $75,000 TO BE
MADE AVAILABLE TO COMPLETE THE ENVIRONMENTAL REMEDIATION AT
THE MIAMI BEACH GOLF CLUB COURSE CONSTRUCTION PROJECT, AND
$264,446.56 TO BE APPROPRIATED TO FUND THE ADDITIONAL
ENVIRONMENTAL REMEDIATION REQUIREMENTS FOR THE NORMANDY
SHORES GOLF COURSE PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funding is available in Account Number: 011-8000-369999 (Misc. Revenue) from the
American Golf Settlement.
ANALYSIS
From 1986 to 1996, American Golf Corporation (AGC) operated and maintained the City's
golf courses under a management agreement. Towards the latter end of that time period,
the City became aware of enforcement actions by the Miami-Dade County Department of
Environment Resource Management (DERM) concerning environmental conditions at the
golf courses. DERM had issued certain Notices of Violation (NOV) for contamination at the
Miami Beach Golf Club Course and the Normandy Shores Golf Course. Not satisfied with
AGC's responses to the NOV, the City terminated the agreement and undertook its own
assessments. After extensive negotiations with DERM, the City agreed to limited
remediation of the golf course maintenance areas and undertook such remediation to
precede the renovation of the golf courses.
Thereafter, the City Attorney's Office and outside counsel undertook to recover monies
expended in furtherance of the assessment and remediation activities. In 2004, the City filed
an action against AGC in the United States District Court, Southern District of Florida, Miami
Division, styled City of Miami Beach v. American Corporation of California, Inc., Case
Number: 04-22607-CIC-MARTINEZ, seeking cost recovery for alleged environmental
contamination at the Bayshore (Miami Beach Golf Club) and Normandy Shores Golf courses
owned by the City, under state and federal environmental statutes. After recent case law
limited the recovery to state law claims, the City filed an amended complaint. AGC denied
the allegations contained in the City's Complaint and alleged certain defenses to the City's
claims.
City Commission Memorandum - American golf Settlement
March 8, 2006
Page 2 of 2
The parties engaged in mediation in early August, 2005, but failed to reach an agreement.
Thereafter, AGC submitted a settlement offer, without admission of liability, which was
considered by the City Commission, in attorney-client session on September 8, 2005.
Pursuant to direction from the City Commission, the City Attorney's Office and outside
counsel engaged in further negotiations with AGC, which resulted in the Agreement
submitted to the Commission on October 19, 2005, whereby the parties agreed to resolve all
disputes which may exist between them rather than continue with the litigation.
The City Commission approved the Resolution approving the settlement agreement which
authorized the City Manager and City Clerk to execute the Agreement on behalf of the City,
and the City Manager and City Attorney were authorized to take appropriate actions
consistent with the intent of the resolution to implement the provisions of the Settlement
Agreement.
The Settlement Agreement executed on October 19, 2005, caused AGC to pay the City of
Miami Beach a total of $375,000. On January 11,2006, $35,553.44 was appropriated from
the American Golf Settlement to provide for hydrogeologic consulting services for the Miami
Beach Golf Club maintenance building in order to comply with the permit requirements
imposed by Department of Environmental Protection (FDEP).
The Miami Beach Golf Course Clubhouse building received a Temporary Certificate of
Occupancy (TCO) on May 5, 2004. It is anticipated that a Certificate of Occupancy (CO) will
be achieved by the second quarter of 2006, as soon as the air-conditioned dumpster
enclosure is completed. Funding for the enclosure was appropriated in the Commission
meeting of October 19, 2005. It is anticipated that a TCO will be achieved for the
Maintenance Building by the end of the first quarter of 2006.
City staff recommends that $75,000 from the Settlement be appropriated to finish the
environmental remediation at the Miami Beach Golf Club project which may be necessary
pending the results of the Reasonable Assurance Report required by FDEP / DERM. In
addition, City Staff recommends that $264,446.56 be appropriated to address additional
remediation required by FDEP / DERM for the Renovation of the Normandy Shores Golf
Course project.
CONCLUSION
That the City Commission appropriate $339,446.56 from the American Golf Course
Settlement, $75,000 to be appropriated to fund the environmental remediation required by
FDEP / DERM at the Miami Beach Golf Club project and $264,446.56 to be appropriated to
fund the additional environmental remediation required by FDEP/DERM at the Normandy
Shores Golf Course Project, for a total appropriation of $339,446.56.
T:~,GENDA~006~'nar0806\Regular~American Golf Commission Memo-revised 2-27-06- 3.8.06.doc