HomeMy WebLinkAboutCC 1998-08-11 MinutesCITY
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COMMISSION
MINUTES
OF MEETING HELD ON August 11, 1998 (Special Commission Meeting)
PREPARED BY THE OFFICE OF THE CITY CLERK/CITY HALL
Walter J. Foeman/City Clerk
INDEX
MINUTES OF SPECIAL MEETING
August 11, 1998
ITEM NO. SUBJECT LEGISLATION
1. (A) VICE-CHAIRMAN PLUMMER DIRECTS CITY ATTORNEY TO 8/I1/98
DRAFT PROPOSAL FOR ESTABLISHMENT OF SECOND CODE DISCUSSION
ENFORCEMENT BOARD. 1-2
(B) VICE-CHAIRMAN PLUMMER DIRECTS CITY MANAGER TO
PUBLICIZE IN NET 9 NAMES OF FELONS CONVICTED FOR
DRUGS/PROSTITUTION/ILLEGAL DUMPING OF TRASH - FURTHER
REQUESTING MANAGER TO PROVIDE HIM WITH REPORT ON SAID
MATTER.
2. AUTHORIZE MODIFICATION OF RECORDED COVENANT FOR 8/11/98
PROJECT LOCATED AT 1744-1756 NORTH BAYSHORE DRIVE R 98-808
(MIRAMAR PROJECT) TO COMPLY WITH RESOLUTIONS 97-763 2-3
ADOPTED OCTOBER 28, 1997.
3. MAYOR CAROLLO ESTABLISHES ORDER OF THE DAY. 8/11/98
DISCUSSION
4
4. DEFER TO LATER IN SESSION DISCUSSION CONCERNING JOINT 8/11/98
PARTICIPATION AGREEMENT FOR PARROT JUNGLE AND GARDENS DISCUSSION
OF WATSON ISLAND - SEE LABEL 6 4-5
5. DISCUSS PROPOSED BUDGET FOR FISCAL YEAR 1998-1999 AND 8/11/98
PROPOSED FIVE YEAR PLAN. M 98-809
(A) COMMENTS FROM VICE CHAIRMAN PLUMMER CONCERNING 5-63
OVERSIGHT BOARD'S ATTENDANCE AT CITY COMMISSION
MEETINGS.
(B) COMMENTS FROM COMMISSIONER TEELE CONCERNING
BUDGET RECOMMENDATIONS FROM MAYOR..
(C) COMMENTS FROM COMMISSIONER TEELE CONCERNING
MAYOR'S VIEW OF RECOMMENDATIONS MADE BY SPECIAL
BUDGET ADVISORY COMMITTEE.
(D) CITY MANAGER'S BUDGET PRESENTATION: HISTORICAL
PERSPECTIVE OF BUDGET NUMBERS FOR PROPOSED FIVE YEAR
FINANCIAL PLAN.
(E) COMMENTS FROM COMMISSIONER SANCHEZ CONCERNING
PROPOSED BUDGET - FURTHER REQUESTING CITY MANAGER TO
ADDRESS HOW MUCH CITY CAN CUT INTERNALLY WITHOUT
AFFECTING SERVICES.
(F) BUDGET PRESENTATION BY RAY GOODE, CHAIRMAN OF
SPECIAL BUDGET ADVISORY COMMITTEE.
(G) QUESTIONS BY CITY COMMISSIONERS REGARDING GARBAGE
AND FIRE ASSESSMENT FEES / ECONOMIC FEASIBILITY OF
MAINTAINING CITY'S MANAGEMENT OF KNIGHT CENTER;
FREEZING EXISTING VEHICLES; REDUCING TRASH PICK UP
SERVICES; REDUCING DEPARTMENTAL BUDGETS BY ONE
PERCENT PER MONTH.
(H) DISCUSSION REGARDING MILLAGE RATE BEING ABOVE
STATE AVERAGE - FURTHER DISCUSSION REGARDING COST OF
POLICE OVERTIME/UNCLASSIFIED POSITIONS/OTHER
CONTRACTUAL SERVICES - ALSO DIRECT CITY MANAGER TO LIST
DEPARTMENTS, INCLUSIVE OF MAYOR'S AND CITY
COMMISSIONER'S OFFICES, WHICH HAVE EXCEEDED BUDGETS
AND PROVIDE RATIONALE FOR SAME.
(I) DIRECT CITY ATTORNEY TO DEVELOP LEGISLATION
SIMILAR TO ANTI -DEFICIENCY ACT MAKING DEPARTMENT HEADS
FISCALLY ACCOUNTABLE TO CITY MANAGER/MAYOR/CITY
COMMISSION.
(II) DIRECT CITY MANAGER TO RECOGNIZE MEMBERS OF
MAYOR'S SPECIAL ADVISORY BUDGET REVIEW COMMITTEE.
(III) DIRECT CITY MANAGER TO RETURN TO CITY
COMMISSION WITH FIGURES INCLUSIVE OF OFF STREET PARKING
DEPARTMENT'S CONTRIBUTION TO CITY'S BUDGET/COST
SAVINGS FROM REDUCTION OF TRASH PICK UPS/COST SAVINGS
FROM REDUCTION OF SURPLUS POSITIONS.
(I) BUDGET PRESENTATION BY DIPAK PAREKH, BUDGET
DIRECTOR.
(J) QUESTIONS FROM CITY COMMISSIONER'S REGARDING
ANTICIPATED CARRYOVER FROM CURRENT FISCAL YEAR TO
NEXT FISCAL YEAR - DISCUSSING FURTHER WHAT CITY
COMMISSION CAN DO LEGISLATIVELY TO AVOID APPROVING
UNBALANCED BUDGETS IN FUTURE.
(K) DISCUSSION REGARDING CONTRIBUTION TO BUDGET BY
DEPARTMENT OF OFF STREET PARKING.
(I) DIRECT CITY ATTORNEY TO DRAFT ORDINANCE TAKING
OVER DEPARTMENT OF OFF STREET PARKING - FURTHER
DIRECTING CITY ATTORNEY TO EXPLORE OTHER ALTERNATIVES
TO TAKE OVER.
(II) MAYOR CAROLLO CLARIFIES THAT UNLESS OFF STREET
PARKING CAN GUARANTEE FUNDS WITHOUT CONDITIONS, CITY
WOULD IMPLEMENT TAKE OVER ORDINANCE.
(III) MAYOR CAROLLO INSTRUCTS CITY ATTORNEY AND
CITY MANAGER TO REVIEW LEGALITY AND FEASIBILITY OF
CONTACTING FIRMS TO MANAGE OFF STREET PARKING.
(IV) COMMISSIONER TEELE DIRECTS CITY MANAGER TO
DEVELOPMENT BUDGET SOLUTION TO BRING ILLEGAL PRIVATE
WASTE HAULERS INTO COMPLIANCE - FURTHER DIRECTING
MANAGER TO INSTRUCT FIRE MARSHAL'S OFFICE TO INSPECT
FOR ILLEGAL WASTE COLLECTION COMPANIES OPERATING IN
CITY/SET MINIMUM STANDARDS FOR SOLID WASTE
DEPARTMENT/IMPLEMENT STREET SWEEPING SCHEDULE/EQUIP
WASTE COLLECTORS WITH BROOMS TO CLEAN STREETS AFTER
PICK UPS/ENSURE WITH EXTERNAL AUDITORS THAT INCREASES
GENERATED BY SOLID WASTE FEES GO ONLY TO SOLID WASTE
DEPARTMENT.
(V) COMMENTS FROM OCMMISSION REGALADO
CONCERNING NEED TO EXPEDITE CONTRACTS PENDING
APPROVAL OF OVERSIGHT BOARD.
(VI) COMMENTS FROM COMMISSIONER GORT REGARDING
NEED TO EDUCATE COMMUNITY ON TOUGH BUDGET DECISIONS
TO BE MADE.
(VII) MAYOR CAROLLO INSTRUCTS CITY MANAGER TO
RETURN TO CITY COMMISSION WITH DIRECT BUDGETARY
RECOMMENDATIONS - FURTHER COMMENTS FROM
COMMISSIONER TEELE REGARDING TO VOTE ON THE BUDGET
AND TO HAVE DIRECTION FROM CITY MANAGER AND ITS
ADMINISTRATION.
(VIII) SCHEDULE SPECIAL COMMISSION MEETING FOR
AUGUST 13, 1998 AT 10 A.M. - SHOULD NEED ARISE FURTHER
SCHEDULE ANOTHER COMMISSION MEETING FOR AUGUST 14, 1998
AT 10 A.M. TO ADDRESS PROPOSED BUDGET FOR FISCAL YEAR
1998-1999 AND REVISED FIVE YEAR PLAN - FURTHER DIRECTING
MANAGER TO PREPARE PROPOSED MENU OF CUTS FOR
CONSIDERATION.
(, CITY MANAGER TO EXECUTE JOINT PARTICIPATION AGREEMENT - 8/11/98
MIAMI-DADE COUNTY, FOR PARROT JUNGLE AND GARDENS OF R 98-810
WATSON ISLAND, SECTION 108 LOAN GUARANTEE APPLICATION; 63-66
CONDITIONS FOR CITY TO SUBSTITUTE ITSELF AS GUARANTOR
AND RESPONSIBILITIES IN EVENT OF DEFAULT.
7, VICE CHAIRMAN PLUMMER PRESENTS CITY MANAGER WITH 8/11/98
YARDSTICKS FOR NET OFFICES TO USE IN LOT CLEARING DISCUSSION
PROCESS. 66-67
MINUTES OF SPECIAL MEETING OF THE
CITY COMMISSION OF MIAMI, FLORIDA
On the 1 lth day of August, 1998, the City Commission of Miami, Florida, met at its regular meeting
place in the City Hall, 3500 Pan American Drive, Miami, Florida in regular session.
The meeting was called to order at 12:03 p.m. by Presiding Officer/Commissioner J.L. Plummer, Jr.
(hereinafter referred to as Vice Chairman Plummer), with the following members of the Commission
found to be present:
Commissioner Wifredo Gort (District 1)
Commissioner J.L. Plummer, Jr. (District 2)
ALSO PRESENT:
Commissioner Joe Sanchez (District 3)
Commissioner Tomas Regalado ( District 4)
Commissioner Arthur E. Teele, Jr. (District 5)
Donald Warshaw, Acting City Manager
Alejandro Vilarello, City Attorney
Walter J. Foeman, City Clerk
Maria J. Argudin, Assistant City Clerk
An invocation was delivered by Mayor Joe Carollo, who then led those present in a pledge of allegiance
to the flag.
1. A. VICE-CHAIRMAN PLUMMER DIRECTS CITY ATTORNEY TO DRAFT PROPOSAL FOR
ESTABLISHMENT OF SECOND CODE ENFORCEMENT BOARD.
B. VICE-CHAIRMAN PLUMMER DIRECTS CITY MANAGER TO PUBLICIZE IN NET 9 NAMES
OF FELONS CONVICTED FOR DRUGS/PROSTITUTION/ILLEGAL DUMPING OF TRASH —
FURTHER REQUESTING MANAGER TO PROVIDE HIM WITH REPORT ON SAID MATTER.
Vice Chairman Plummer: To prepare for the next City agenda, Mr. City Manager, the possibility of
establishing a second code enforcement board to deal primarily with lot clearing and abandoned
automobiles. We will also have some other suggestions in reference to lot clearing, as to relation to fines,
cost and the so-called CLUC-90 (County Land Usage Code). So you would have that prepared for the next
meeting. Mr. City Attorney, I had previously asked why the City has not gone back to the system of
publishing the names and photographs of individuals arrested in the city for drugs, prostitution, and now I
would like to add to that list illegal dumping. This City Commission approved it. It has not yet been on
Cable 9 and I want to know from you, in the next seven days, the reason why. Now, the Mayor's on his
way. What do you guys want to do? The Mayor's on his way. There's two pocket items. You want to
handle those, Arthur?
Commissioner Teele: I don't know what you're talking about.
Vice Chairman Plummer: Okay. I tell you what, let's go ahead so that we can try to capture the time
element of the day waiting for the Mayor. Let's stand up and I'll ask Arthur Teele to give the invocation and
August 11, 1998
Mr. Gort to give the pledge of allegiance.
An invocation was delivered by Commissioner Teele and Commissioner Gort led those present in a pledge
of allegiance to the flag.
2. AUTHORIZE MODIFICATION OF RECORDED COVENANT FOR PROJECT LOCATED AT 1744-
1756 NORTH BAYSHORE DRIVE (MIRAMAR PROJECT) TO COMPLY WITH RESOLUTIONS 97-
763 ADOPTED OCTOBER 28, 1997.
Vice Chairman Plummer: In anticipation of waiting for the Mayor, does anyone have any pocket items?
Seeing that there are none from my colleagues, I have two that I've been asked to present and I'll do it such
now. The first one is in reference to an application from downtown for a zoning, which was originally put
forth and had been changed and the wording in the second resolution did not obliterate the first and it has
caused a problem in the financing. It is with the concurrence of the City Attorney, the City Manager and
Building and Zoning, I offer the following:
[AT THIS POINT, COMMISSIONER PLUMMER READ THE RESOLUTION INTO THE PUBLIC
RECORD]
Vice Chairman Plummer: I so move.
Commissioner Gort: Second.
Vice Chairman Plummer: Is there any discussion?
Commissioner Teele: Mr. Chairman?
Vice Chairman Plummer: Mr. Teele.
Commissioner Teele: I'm totally unaware of the item.
Vice Chairman Plummer: All right, sir.
Commissioner Teele: Is this item time sensitive?
Vice Chairman Plummer: It is my understanding, from the applicant, that it is, because of the financing,
until the first resolution is obliterated, that they will not issue and he has people waiting. Mr. Tibor Hollo is
here and his attorney, Miss Vicky Leiva is here, who can answer, I hope, any questions that you might have,
sir.
Commissioner Teele: Well, you just ... as they say up in north Florida, you just splained it to me. Mr. Hollo,
who has done so much, I think, to move this community. Just so that the public is aware, most of what is
Venetia and the area around the Miami Herald, as well as much of the downtown property was built
with ... under Mr. Hollo's leadership in the early 80's and, clearly, the only bright spot in the CRA
(Community Redevelopment Agency) record is the Omni area, based upon the taxes of the properties that
Mr. Hollo and others built and so I would be pleased to second the motion. It's in your district. And if it
hasn't been seconded. And to basically support this. Although, I must say, I think that we really should not
let this agenda start dealing with issues other than what this meeting is called for and I really would have
objected ... I would never object to something that a visionary has done. Mr. Mayor, welcome.
Mr. Alejandro Vilarello (City Attorney): Mr. Chairman?
Vice Chairman Plummer: I assume then it's splained to you so all those in favor ... it's a resolution.
Mr. Vilarello: Mr. Chairman?
Vice Chairman Plummer: Mr. City Attorney.
2 August 11, 1998
Mr. Vilarello: Just for the record, just me clarify that this is a modification of the covenant, not of the
resolution. The resolution was passed and adopted by the Commission. This is simply bringing the
covenant into compliance with what the resolution already authorized.
Vice Chairman Plummer: This meets with your approval?
Mr. Vilarello: Yes, sir.
Vice Chairman Plummer: Mr. Manager?
Mr. Donald Warshaw (Acting City Attorney): Yes, sir.
Vice Chairman Plummer: And the Zoning Department?
Ms. Lourdes Slazyk (Director/Planning and Development): Yes.
Vice Chairman Plummer: All in favor, say "aye."
The Commission (Collectively): Aye.
Vice Chairman Plummer: (Show a unanimous vote).
The following resolution was introduced by Commissioner Plummer, who moved its adoption:
RESOLUTION NO. 98-808
A RESOLUTION, WITH ATTACHMENT(S), APPROVING AND
AUTHORIZING THE RECORDATION OF THE FIRST
MODIFICATION TO DECLARATION OF RESTRICTIVE
COVENANTS, ATTACHED HERETO AS EXHIBIT "A" AND MADE
A PART HEREOF, FOR THE PROPOSED MULTI -STORY PROJECT,
ALSO KNOWN AS THE "MIRAMAR PROJECT," LOCATED ON
THE PROPERTY AT APPROXIMATELY 1744-1756 NORTH
BAYSHORE DRIVE, MIAMI, FLORIDA, TO AMEND THE
RECORDED COVENANT TO REFLECT THE CHANGE OF 533
HOTEL ROOMS TO 471 RESIDENTIAL UNITS, AUTHORIZED
PURSUANT TO RESOLUTION NO. 97-763, ADOPTED ON
OCTOBER 28, 1997, WITH ANY RECORDATION OR OTHER
EXPENSES RELATED TO THE MODIFICATIONS TO BE PAID BY
THE PROPERTY OWNER.
(Here follows body of resolution, omitted here and on file in the Office of the City Clerk.)
Upon being seconded by Commissioner Gort, the resolution was passed and adopted by the following
vote:
AYES: Commissioner Wifredo Gort
Commissioner Tomas Regalado
Commissioner Joe Sanchez
Commissioner Arthur E. Teele, Jr.
Vice Chairman J.L. Plummer, Jr.
NAYS: None.
ABSENT: None.
3 August 11, 1998
3. MAYOR CAROLLO ESTABLISHES ORDER OF THE DAY.
Vice Chairman Plummer: Mr. Manager, I do have one for the Parrot Jungle. If I ... if you want me to
proceed?
Mayor Carollo: If you like, Commissioner ... if these are things that have to...
Vice Chairman Plummer: It is my understanding, they are time certain, yes, sir.
Mayor Carollo: ...be done today, that they can't wait...
Vice Chairman Plummer: Yes, sir.
Mayor Carollo: ...then let's do them. But after dealing with this last pocket item, what I'd like to suggest to
the Commission that we stick to the agenda as we have today, as one of the Commissioners was saying
when I walked in. And, at the same...
Vice Chairman Plummer: No other Commissioner has indicated they have anything.
Mayor Carollo: Fine. And, at the same time, what I'd like to have this body do is to stick to those issues
and only those issues that would deal with the agenda, as we have to balance the budget by next Monday.
Any other items that members of the Commission might have, that can possibly bring recurring revenue to
the City, in one form or another, I would suggest that that's left for after we deal with what we have at hand
first or for another meeting. We could only concentrate, in my opinion, as to what we have to do to give a
balanced budget for the five years in the way that they specified to the Oversight Board by Monday. Go
ahead, Commissioner.
4. DEFER TO LATER IN SESSION DISCUSSION CONCERNING JOINT PARTICIPATION
AGREEMENT FOR PARROT JUNGLE AND GARDENS OF WATSON ISLAND — SEE LABEL 6.
Vice Chairman Plummer: Mr. Mayor, there was an objection by a member of the Oversight Board in
reference to the Parrot Jungle's agreement. It is time certain by virtue of the fact that it holds everything up
and delays the start. This has gone through the Manager. It has gone through the City Attorney and the
proper authorities and, strangely enough, it might interest you that I already have a letter of approval from
the Oversight Board and we haven't even approved the issue yet. So, let's do it so we make the Oversight
Board in compliance with the resolution.
[AT THIS POINT, COMMISSIONER PLUMMER READ RESOLUTION INTO THE PUBLIC
RECORD.]
Vice Chairman Plummer: Mr. Mayor, I so offer.
Mayor Carollo: It's a motion. Is there a second?
Commissioner Gort: Second.
Commissioner Teele: Mr. Mayor, I would ask that the item be deferred until the end of the meeting. I've
got a...
Vice Chairman Plummer: I have no problem with that at all, Mr. Teele.
Commissioner Teele: And I want to support it. I just really want to understand what we're doing for the
future and I don't want to take that up now, Mr. Mayor
Mayor Carollo: The item will be deferred for the end of the meeting
4 August 11, 1998
Vice Chairman Plummer: I have no problem with that at all, sir.
5. DISCUSS PROPOSED BUDGET FOR FISCAL YEAR 1998-1999 AND PROPOSED FIVE YEAR
PLAN.
A. COMMENTS FROM VICE CHAIRMAN PLUMMER CONCERNING OVERSIGHT BOARD'S
ATTENDANCE AT CITY COMMISSION MEETINGS.
B. COMMENTS FROM COMMISSIONER TEELE CONCERNING BUDGET RECOMMENDATIONS
FROM MAYOR.
C. COMMENTS FROM COMMISSIONER TEELE CONCERNING MAYOR'S VIEW OF
RECOMMENDATIONS MADE BY SPECIAL BUDGET ADVISORY COMMITTEE.
D. CITY MANAGER'S BUDGET PRESENTATION: HISTORICAL PERSPECTIVE OF BUDGET'
NUMBERS FOR PROPOSED FIVE YEAR FINANCIAL PLAN.
E. COMMENTS FROM COMMISSIONER SANCHEZ CONCERNING PROPOSED BUDGET —
FURTHER REQUESTING CITY MANAGER TO ADDRESS HOW MUCH CITY CAN CUT
INTERNALLY WITHOUT AFFECTING SERVICES.
F. BUDGET PRESENTATION BY RAY GOODE, CHAIRMAN OF SPECIAL BUDGET ADVISORY
COMMITTEE.
G. QUESTIONS BY CITY COMMISSIONERS REGARDING GARBAGE AND FIRE ASSESSMENT
FEES/ ECONOMIC FEASIBILITY OF MAINTAINING CITY'S MANAGEMENT OF KNIGHT
CENTER; FREEZING EXISTING VEHICLES; REDUCING TRASH PICK UP SERVICES; REDUCING
DEPARTMENTAL BUDGETS BY ONE PERCENT PER MONTH.
H. DISCUSSION REGARDING MILLAGE RATE BEING ABOVE STATE AVERAGE — FURTHER
DISCUSSION REGARDING COST OF POLICE OVERTIME/UNCLASSIFIED POSITIONS/OTHER
CONTRACTUAL SERVICES — ALSO DIRECT CITY MANAGER TO LIST DEPARTMENTS,
INCLUSIVE OF MAYOR'S AND CITY COMMISSIONER'S OFFICES, WHICH HAVE EXCEEDED
BUDGETS AND PROVIDE RATIONALE FOR SAME.
I. DIRECT CITY ATTORNEY TO DEVELOP LEGISLATION SIMILAR TO ANTI -EFFICIENCY
ACT MAKING DEPARTMENT HEADS FISCALLY ACCOUNTABLE TO CITY
MANAGER/MAYOR/CITY COMMISSION.
II. DIRECT CITY MANAGER TO RECOGNIZE MEMBERS OF MAYOR'S SPECIAL ADVISORY
BUDGET REVIEW COMMITTEE.
III. DIRECT CITY MANAGER TO RETURN TO CITY COMMISSION WITH FIGURES INCLUSIVE
OF OFF STREET PARKING DEPARTMENT'S CONTRIBUTION TO CITY'S BUDGET/COST
SAVINGS FROM REDUCTION OF TRASH PICK UPS/COST SAVINGS FROM REDUCTION OF
SURPLUS POSITIONS.
August 11, 1998
I. BUDGET PRESENTATION BY DIPAK PAREKH, BUDGET DIRECTOR.
J. QUESTIONS FROM CITY COMMISSIONERS REGARDING ANTICIPATED CARRYOVER
FROM CURRENT FISCAL YEAR TO NEXT FISCAL YEAR — DISCUSSING FURTHER WHAT CITY
COMMISSION CAN DO LEGISLATIVELY TO AVOID APPROVING UNBALANCED BUDGETS IN
FUTURE.
K. DISCUSSION REGARDING CONTRIBUTION TO BUDGET BY DEPARTMENT OF OFF STREET
PARKING.
I. DIRECT CITY ATTORNEY TO DRAFT ORDINANCE TAKING OVER DEPARTMENT OF OFF
STREET PARKING — FURTHER DIRECTING CITY ATTORNEY TO EXPLORE OTHER
ALTERNATIVES TO TAKE OVER.
IL MAYOR CAROLLO CLARIFIES THAT UNLESS OFF STREET PARKING CAN GUARANTEE
FUNDS WITHOUT CONDITIONS, CITY WOULD IMPLEMENT TAKE OVER ORDINANCE.
III. MAYOR CAROLLO INSTRUCTS CITY ATTORNEY AND CITY MANAGER TO REVIEW
LEGALITY AND FEASIBILITY OF CONTACTING FIRMS TO MANAGE OFF STREET PARKING.
IIII. COMMISSIONER TEELE DIRECTS CITY MANAGER TO DEVELOP BUDGET SOLUTION TO
BRING ILLEGAL PRIVATE WASTE HAULERS INTO COMPLIANCE — FURTHER DIRECTING
MANAGER TO INSTRUCT FIRE MARSHAL'S OFFICE TO INSPECT FOR ILLEGAL WASTE
COLLECTION COMPANIES OPERATING IN CITY/SET MINIMUM STANDARDS FOR SOLID
WASTE DEPARTMENT/IMPLEMENT STREET SWEEPING SCHEDULE/EQUIP WASTE
COLLECTORS WITH BROOMS TO CLEAN STREETS AFTER PICK UPS/ENSURE WITH
EXTERNAL AUDITORS THAT INCREASES GENERATED BY SOLID WASTE FEES GO ONLY TO
SOLID WASTE DEPARTMENT.
V. COMMENTS FROM COMMISSIONER REGALALDO CONCERNING NEED TO EXPEDITE
CONTRACTS PENDING APPROVAL OF OVERSIGHT BOARD.
VI. COMMENTS FROM COMMISSIONER GORT REGARDING NEED TO EDUCATE
COMMUNITY ON TOUGH BUDGET DECISIONS TO BE MADE.
VII. MAYOR CAROLLO INSTRUCTS CITY MANAGER TO RETURN TO CITY COMMISSION
WITH DIRECT BUDGETARY RECOMMENDATIONS — FURTHER COMMENTS FROM
COMMISSIONER TEELE REGARDING NEED TO VOTE ON THE BUDGET AND TO HAVE
DIRECTION FROM CITY MANAGER AND ITS ADMINISTRATION.
VIII. SCHEDULE SPECIAL COMMISSION MEETING FOR AUGUST 13, 1998 AT 10 A.M. —
SHOULD NEED ARISE FURTHER SCHEDULE ANOTHER COMMISSION MEETING FOR AUGUST
14, 1998 AT 10 A.M. TO ADDRESS PROPOSED BUDGET FOR FISCAL YEAR 1998-1999 AND
REVISED FIVE YEAR PLAN — FURTHER DIRECTING MANAGER TO PREPARE PROPOSED
MENU OF CUTS FOR CONSIDERATION.
Mayor Carollo: Now, moving forward with the issue at hand today. Mr. Manager, do we have here Mr.
Goode and the members of the Advisory Committee for the budget that I named?
Mr. Donald Warshaw (City Manager): Yes, sir. Mr. Goode is here and several members of the committee
are here.
Mayor Carollo: OK. Would you like to begin by them giving their presentation to the Commission or
would you like to begin in another fashion?
Mr. Warshaw: I don't know if they have a time commitment but it would be fine if they'd like to give their
presentation, then I'd like to give a little historical picture of how we got to where we are today.
Mayor Carollo: Well...
Vice Chairman Plummer: Mr. Mayor, I have a question. Mr. Manager, are any members of the Oversight
Board here?
Mr. Warshaw: Not that I'm aware of.
Vice Chairman Plummer: Mr. Manager, did you send them a letter inviting them here today?
6 August 11, 1998
Mr. Warshaw: Yes, sir.
Vice Chairman Plummer: OK. So, for the record, let it fully reflect that in 17 months that we have asked
them to meet with this City Commission, they have denied our requests fully to cooperate with this
Commission. I guess it's maybe because none of them live in the City, but they did have the opportunity to
be here today to discuss the matter with us. Mr. Goode, I appreciate your being here, sir. Thank you, Mr.
Mayor.
Mayor Carollo: Mr. Manager, would you prefer for them to begin.
Mr. Warshaw: I'll give a little historical perspective and then Mr. Goode will...
Mayor Carollo: That will be fine.
Commissioner Teele: Before you do, Mr. Mayor. I don't a ... I don't have any documents. I have a
Five -Year "A" and "B," but do we have anything at all yet that reflects the Manager's recommendation that
we're here on and the Mayor's recommendation?
Vice Chairman Plummer: Mayor's, no. I have the Manager's?
Mayor Carollo: Well, Mr. Teele, if I can, when you say that the Mayor's recommendation ... if I would be
listened to in any recommendation that I would give, I would be very thrilled.
Commissioner Teele: Mayor, listen, I don't ... Mayor, listen. Joe, honestly, if you have a recommendation, I
will move it forward. I will take anything you say and this is not bull. This is real.
Mayor Carollo: OK. Well, then, let's lay the cards on the table.
Commissioner Teele: This is very serious at this point. I will recommend...
Mayor Carollo: Because I am very serious.
Commissioner Teele: I will support, for the purpose of moving forward, any recommendation you put
forward because, under our Charter, you are the Mayor. There's only one Mayor and the Mayor has two
principal jobs, as I read it; to recommend or to hire a Manager and to present a budget...
Mayor Carollo: No, no. No, you're wrong again, Commissioner Teele. It is not the Mayor's responsibility
to present a budget. If that would have been the case, then the former City Manager, that I was told could
not be fired, would not have just bypassed me completely and would not have come to this body with a
budget that he presented to the Oversight Board, the one that really started the motion to get us here today
and not being frank with the situation, the one that didn't cut one single position, like we were suppose to.
Now...
Commissioner Teele: Mr. Mayor, I don't know if you were watching or observing, but every time Jose
Garcia Pedrosa presented any document, since you've been Mayor,l, this Commission, has said to him, did
you clear this with the Mayor's office? And I think the record will speak for itself.
Mayor Carollo: Well, the record will speak for itself, that I made it clear that I was informed of the budget
that he was going to present to this body and to the Oversight Board the day before he came to this body to
present it. Now, to go to the foundation of your question, the reason that I formed a Budget Advisory
Committee. The reason that we brought 16 distinguished individuals, plus two that were consulting with
them, individuals that have come from the largest governmental institutions here. Some of the largest
universities in the whole southeast of the United States. Individuals from the private sector. Individuals
that combine, deal every year with over nine billion dollars ($9,000,000,000) of budgets, was so that I could
bring in the short time that we had to come to a conclusion, under the guidelines that we've been given that
are very strict and narrow, that I could bring the best advice that I could to this body. I stated then and I
7 August 11, 1998
state to you and my colleagues now, that I endorse the options that have been given by this body. You
know, maybe some might think they don't know much but, to me, individuals that deal with over nine
billion dollars ($9,000,000,000) of budget every year, I think know a little bit more than some others that
have been screaming so loud and hollow. Their recommendations, I think we all have copies of, they've
basically have left it in an ala carte fashion so that this body can choose and pick between the hard decisions
that are going to have to be made and I fully endorse that. And if you want my recommendations, I am
endorsing ... I am backing the recommendations of the best experts that I think anybody could have brought
in such a short period, to give their best recommendations to this body. Are they easy recommendations?
No, they're not. You know, I would be willing to bet the whole house that, if I would ask the question here
today of the people that are here and are at home, if anybody likes higher taxes or higher fees, I am not
going to see a single hand be raised. Beginning with not a single hand from up here. It's something that is
totally unpopular but, at the same time, we're living in a reality. You know, I wouldn't doubt it that, before
it's all over, I would have some even accusing me or going to my mother and saying to her that, boy, your
son is against you. Here, you're retired. You're a senior citizen. He wants to see your fees, your taxes go
up. 1, as much as anybody else, do not want to see our taxes, yours and mine or any of our fees raised. But
unless anyone that's smarter than the people that we have brought together, that are responsible jointly for
over nine billion dollars ($9,000,000,000) of budgets every year, unless someone can come up and can give
me another solution that we can show between today and Monday to the Oversight Board, then my
recommendations are to do any fashion that this body would like, in an ala carte fashion, from the options
that they have given us. Mr. Manager.
Mr. Warshaw: Thank you, Mr. Mayor. Let me see if I can just give you a brief historical perspective as to
how we got to where we got today, what the numbers are. I've been asked several times, how these
numbers are what they are now, after we're now almost two years into trying to resolve the Merritt
Steirheim Plan. In September of 1996, when Mr. Steirheim came here and worked on the sixty-eight
million dollar ($68,000,000) deficit, of which there was a thirty point four million dollar ($30,400,000)
deficit for fiscal year '96, and additional eighteen point two in the same year in a capital deficit and another
nineteen point four carry-over deficit from previous year, a Five -Year Plan was presented in April of 1997.
That Five -Year Plan showed structural deficits of between thirty-five point nine and fifty-two million
dollars ($52,000,000) going out to the year 2001. A fire fee was proposed in that budget and even after a
thirty point one million dollar ($30,100,000) fire fee was indicated, there still was a structural deficit of
twenty-four point two million in '99; thirty-seven point five in 2000; forty-five point eight in 2001. In this
fiscal year, in March of this year, a fiscal plan was submitted to this Commission that was balanced and it
was balanced based upon a fire fee that was never implemented and a whole host of other expenditure cuts,
including the termination, firing, layoff, whatever you want to call it, of hundreds of employees, which
never happened. The reduction of capital expenditures, which never happened. The removal of vacancies,
which never happened. Additional solid waste fee, which never happened. And, in reality, as far as I'm
concerned, you were presented with a structural budget that was not an honest accounting of what the real
budget was. And now we come to today, August of 1998, and basically, the numbers are pretty much the
same because none of the solutions that were brought forward in these past years were ever implemented
and I feel kind of bad, to be honest with you, that I have to be the bearer of the bad news to tell you that, just
three months ago, you were looking at a budget that you were led to believe was balanced, when, in effect,
it wasn't. Those five hundred people who were to be laid off or fired, not one of them was ever fired but,
yet, this budget shows seven, eight, nine million dollars ($9,000,000) in savings throughout the five-year
period for personnel moves that were never made. So, that takes us where we are today. And the handout
that you just received, which is Draft -A and Draft-B. Draft -A being without a commitment from Off -Street
Parking and Draft-B being with that commitment. Starting with Draft -A. It basically shows a structural
deficit in Fiscal Year 1999 of approximately sixteen and a half million, extended out to Fiscal Year 2003, to
twenty-five million. The reason that you're being given two of these handouts is, there are still some issues
to be worked out with Off -Street Parking regarding the Financial Oversight Board's request that the revenue
stream be guaranteed and we're working with Off -Street Parking and making an assumption that we get
those revenues guaranteed, which I am optimistic that we will. The structural deficit will go to fourteen
point two million for Fiscal Year '99 to twenty-two point eight million for the year 2003. That being said,
this is pretty much where we are today. I'd like to also share with you that I've spent the last 10 days, day
and night, seven days a week, looking at the budget and while I won't tell you that there are no expenditure
cuts possible, because there are, and while I won't tell you that there aren't some personnel moves that could
be made to save money, which there are, the numbers are small and insignificant in comparison to the
August 11, 1998
structural deficits we're looking at, which really are huge. So, that being said, this is pretty much the picture
of what we've got right now, including the revisions and the initiatives that we put in, that we know the
Oversight Board will find acceptable. With that, I'd like to, unless you want to ask me some questions, ask
Mr. Goode to make some comments about his recommendations as part of the Budget Advisory Committee
as Chairperson.
Commissioner Sanchez: I have a question.
Mayor Carollo: Go ahead, Commissioner.
Commissioner Sanchez: Mr. City Manager, if you were to come out with a solution or a final solution on
how much can the City cut without interfering its services ... in other words, the thing is to look within
ourselves to see how much we could cut as possible to still be able to afford a productive government and
still provide our constituents and the citizens of Miami an adequate service. Give me a ballpark figure
number of how much can we cut.
Mr. Warshaw: Let me answer that two ways, Commissioner. Let me tell you what happened again back in
March of this year when you received a supposed balanced budget that talked about five hundred people
leaving. In effect, simultaneously with that, the Oversight Board, as part of the Blue Ribbon Task Force,
increased the number of positions for this fiscal year to a hundred and forty-one additional and another
hundred and thirteen for next fiscal year. So, we had a turn around from layoffs to increases. Those
positions are part of the City's Structural Recovery Plan to ensure that there are people placed in key jobs, in
mid -level management, as well as inspectors' positions in the kinds of job that, in many cases, can produce
revenue. There is a plan, and I know that Mr. Goode is going to talk about it, to stage the hiring of some of
these positions. Because, for this fiscal year, although there were a hundred and forty-one positions
delineated, we've only filled about 53, 54 of them. So, that being the case, with a hundred and thirteen for
next year, staging the hiring could probably save somewhere in the vicinity of two million dollar
($2,000,000) in Fiscal Year '99. That being said, there are some other positions in the City, and I would
guesstimate somewhere between five hundred and seven hundred and fifty thousand dollars ($750,000) of
recurring savings from personnel moves that could be made within the near future, but I wouldn't estimate
as it much higher than that.
Commissioner Sanchez: Mr. Manager, you know, my concern is simple. You know, we could add
positions, make the government more efficient, do what we need to do but, if we don't fix what's broken
now, we'll be back out here in three more years, not asking for twenty-four million, we'll be asking for
thirty-five million to get over it. So, the thing that I want to suggest here, and to my Commissioners and to
you, is that we do whatever it takes to fix up twenty or thirty ... and some agree with me ... thirty -plus years of
poor decision -making, sweetheart deals and things that have gotten us today. And, if we don't fix it today,
we're going to be back out here in three more years with the same problem, trying to pass the buck again to
the citizens. That's the biggest concern that I have. With the suggestions that the Budget Committee put
together, there are great exceptions... there are good suggestions there. There are some that I look at on this
sheet of paper right here, that we should study, and I'm sure the Commissioners are going to review it and
do as much as we can. You know, we're going to have to make a tough decision here today, no doubt about
it. But we have options. Couple of weeks ago we didn't have any options. A couple of weeks ago, it was
you need to do three things. So, let's try to, you know, make the most realistic options and decisions today.
Commissioner Gort: Mr. Mayor.
Mayor Carollo: Commissioner, go ahead.
Commissioner Gort: For the sake of time, I'd like to have my colleagues and yourself, if we can let the
committee make the recommendations and then we can ask questions on their recommendations, so we can
get the presentation over with and then we can answer the questions.
Mayor Carollo: I welcome that suggestion, Commissioner. Mr. Goode, thank you for being here and for all
the members of the Budget Advisory Committee that are here also today. I thank them for coming and for a
task that was almost a mission impossible. You were given a limited amount of days to go over a
9 August 11, 1998
tremendous amount of work. I know that you all have worked day and night and I, personally, want to
thank you and the committee members for the work and effort that you have put forward for this City.
Mr. Goode: Thank you, Mr. Mayor and members of the Commission. I'm Ray Goode with Ryder System
and you did pull together an extraordinary group of talented folks. The Chief Budget and Financial Officers
from the University of Miami, from FIU (Florida International University), from the school system, from
Metro, and you threw in a few of us from the private sector and we've appreciated the opportunity to mingle
with that group of professional folks and several are here. I might ask, just by a show of hands, the
members of the Mayor's Advisory Committee who are here with, again, thanks to all of you for the work
you've done. We, from day one, recognized this Commission's dilemma and it's a dilemma that we faced,
as well. You've just been outlined a problem of a structural deficit but the big problem is, you have so little
time left to correct it, both for FY '99 and in your Five -Year Plan, and it needs to be done. We've all read
the Oversight Board's letter with recurring sources of revenue or structural changes on the expense side, that
Commissioner Sanchez was talking about, that would create an ongoing savings and not just a one-time
savings arrangement. Now, a lot of the problem, I think in the past couple of years, where we haven't gotten
closer to resolving this problem and balancing the budget, has been because of some much administrative
change and a lot of instability, as we've gone through a variety of different leaders here, and as the troops in
the field haven't had the clear direction in terms of what to do and so on. So, with your budget team and
with your City Manager now, I'm sending a more distinct and direct messages, particularly on the expense
side. We think that's very important. But the problem is looking at expenditure reductions. Just as an
example, we had a couple of folks from Ryder volunteer on the Blue Ribbon Panel just to look at Worker's
Comp in the City and they're absolutely convinced, by strong management of the Worker's Comp Program,
that the savings are at least in the three million dollar ($3,000,000) range or more. That's, again, something
that could be worked on in this coming year. Where a year from now, you may be able to say, we can
modify some of these fees and revenues downward because we have really got hold of some of the expense
problems that within this City. But, again, you don't have the advantage of that much time right now. So,
we've come to the same conclusion that most everyone else has and that is that, based on the time
constraint, that the largest part of the solution to this problem lies on the growth side of the revenue and not
on the expense reduction side, to the extent you can incur expense reductions. You can certainly resolve
some of this problem as the year progresses but you're not going to be able to do it in a time now, I think,
satisfies the Oversight Board, that you will, in fact, see those savings accrue. So, we basically have tried to
put together for you ... and I'm not going to take time going through all that because you did receive the
report ... urging you to retain, on a permanent basis for FY '99, the temporary adjustment you made on the
property tax millage side and then do a combination of a sanitation fee and a fire rescue fee increase that,
with at least one type of expenditure reduction that I think the Oversight Board would help, that could bring
in the balance, and that is the staging of the filling of the various new positions. Now, we agree with the
Blue Ribbon Panel and others that you really do need to bring some additional people on. You have a pretty
severe problem in your professional/technical administrative ranks here of having that group depleted over
the years and it needs to be replenished if this City is going to progress so ... but, you can't hire all of those
positions on day one of the fiscal year or even in the first quarter. So, we've suggested a staging of the
hiring of the positions that are budgeted and we believe that it would save a minimum of two million dollars
($2,000,000). There may be ways to tweak that number to even create additional savings. But our ... as
citizens of this community and people with great deal of pride in the City, we're just urging you to not let
this become another crisis and another open warfare between you and the Oversight Board or the Governor,
whoever it is, but just go ahead and take the leadership and resolve this for now in the way that you best see
fit that will meet their criteria but, then, really pledge in this coming year to dig into some of these potential
expense reduction areas and do it in a meaningful way that, a year from now, you're going to look at
comfortable reserves, funds for capital outlay and a way to balance this budget without further adding
increases on the revenue side. So, if we can be helpful on a Q&A side, we'll be glad to, Mr. Mayor. But
that's the essence of our report and thank you.
Vice Chairman Plummer: I have a question, Mr. Mayor.
Mayor Carollo: Go ahead.
Vice Chairman Plummer: Mr. Manager, as you know, I get hit extraordinary because I think about 80
percent of the condos are in my district. Now, when you talk about raising the garbage fee in a modified
10 August 11, 1998
version, and I saw your recommendation about graduated over the period of five years as merit. What do
you anticipate doing with the condominiums who do not receive garbage service from the City? They get it
solely from private enterprise in which they pay, if they have the opportunity, sometimes they don't, 20
percent to the City for what they haul. Now, are you anticipating the inclusion of the condos in the garbage
fee or are you not?
Mr. Warshaw: Well, I don't want to speak for the Committee, but let me ... I'll speak for me
Vice Chairman Plummer: Well, no, speak for the City.
Mr. Warshaw: OK. The menu of options that you have, basically, is such that it has to come up with a
bottom line number to satisfy the deficit. So, if you're asking me, is there a way to structure the sanitation
fees where the condos are paying at a different level or are not paying at all, the answer is yes, and I think
that's a subject for our discussion.
Vice Chairman Plummer: All right. What I hear repeatedly and the Fire Chief heard repeatedly was equal
protection under the law and I hear that every meeting that I go to, all right. Now, at the fire fee before, it
was to eliminate the garbage fee on the single family residences and apply a fire fee instead of that. My
question, is there been put together for today a clear-cut that a fire fee would be against the condominiums,
just like everybody else and the home owner, but they would not be charged a garbage fee, where they don't
receive garbage service? I'm asking because I can assure you that that will, within itself ...and, Ray, I didn't
tell you this before... they've taken up a pot of gold and they're ready to file lawsuits. Now, under equal
protection, I'm asking the question again. Is, in fact, the condominiums going to be excluded, as they have
always been, away from a garbage fee?
Mr. Alejandro Vilarello (City Attorney): Commission Plummer, I ... unfortunately, I think you're mixing two
issues...
Vice Chairman Plummer: Then straighten me out.
Mr. Vilarello: ...that are critical, that the Commission keep them separate. The fire assessment is an
assessment for fire services, which has to be considered and dealt with independently of any solid waste fee.
The solid waste fee that you're talking about, that has to do with condominiums...
Vice Chairman Plummer: No, no, no. You're the new boy on the block. Let me straighten you out, all
right? Let me tell you where you're wrong. You would have been right if, in fact, before the fire fee did not
eliminate the garbage fee in the single family. You would have been right. But when they tied the two of
those together, don't separate them to the home owner.
Mr. Vilarello: As matter of law, those are specifically unrelated issues. The fire assessment is based on fire
services provided in the City. With regard to solid waste services that are provided, that's a fee that is based
on the cost to the City to provide for garbage pick-up of single family residents.
Vice Chairman Plummer: You're absolutely wrong.
Mr. Vilarello: In addition to that, you charge a twenty percent franchise or permit fee associated with solid
waste collection to private haulers. Condominiums pay that fee when they have a private hauler...
Vice Chairman Plummer: Mr. City Attorney, you are absolutely wrong and let me tell you why. Simply, a
fee to the home owner for collection garbage was to be abolished by a fire fee. Now, you could sit there all
day long but you're not going to convince one home owner that, in fact, one did not tie into the other.
Commissioner Teele: Mr. Mayor?
Vice Chairman Plummer: They were absolutely correlated into a single subject and it was to eliminate the
sanitation fee completely to the residential home owner. Am I right, Mr. Chief? Single family, that's right.
11 August 11, 1998
Mr. Vilarello: Commissioner Plummer, just to...
Mr. Warshaw: I think I can answer that question.
Mr. Vilarello: Whatever your legislative intent might have been, it is not ... the fire assessment cannot be
tied directly to some reduction in another fee. Fire assessment has to be based on the assessment for
fire -related services.
Vice Chairman Plummer: Well, then...
Commissioner Teele: Mr. Mayor?
Mayor Carollo: Commissioner Teele, go ahead.
Vice Chairman Plummer: I'll yield to my Commissioner. I'm not finished but I'll yield.
Commissioner Teele: I respect Commissioner Plummer's point of view. I am aware that there was a lot of
discussion, before I was elected on the Commission, about these two issues. For the record, Mr. Attorney,
Commissioner Plummer, since I have been on this Commission and voted on the only fire fee that has been
adopted, the garbage fee was not a consideration of mine. It was specifically not a consideration of this
Commission on the advice of counsel from Tallahassee.
Vice Chairman Plummer: Well, that's true.
Commissioner Teele: And I, specifically, believe that, in light of a litigation, which the attorney, I think is
being too genteel and ... Mr. Attorney, I think you're being far too gentle now with us. You need to put on
the record, there's a litigation...
Vice Chairman Plummer: Not yet.
Commissioner Teele: There has been a lawsuit filed on this issue and I really do believe that commingling
these two issues is not only adverse to the City position, it is clearly inconsistent with the decisions that this
Commission made when we were made specifically by counsel, outside counsel from Tallahassee, that told
us we could not commingle or consider one or the other. And, in fact, there was a discussion on the agenda
for the solid waste fee at the same day we took up the fire fee and on the advice of counsel, we took that off
the agenda so that there could be no argument that the two issues were commingled. I only say this, J.L.,
for the record specifically, because I wasn't here when the other discussion was had but I can tell you this,
only one fire fee has been passed by the City and there was no consideration, at all, of the solid waste fee in
considering the fire fee by this Commission or the majority of the Commission.
Vice Chairman Plummer: That's what makes five us of independent thinkers. OK? Now, Mr. Goode, I'd
like to ask you another question because I brought it up the other day and I don't understand because my fax
is very, very poor. I don't know what this word is. Mr. Gort tells me it's reinstate. Is that what it is, Mr.
Gort?
Commissioner Gort: That's what it sounds like...looks like to me.
Vice Chairman Plummer: In reference to ... the second paragraph down, is it restatement? Is that what it is?
Mr. Warshaw: You're looking at the chart?
Vice Chairman Plummer: OK. And, in particular, the Knight Center, that big pink elephant of four million
dollars ($4,000,000). Now, what are you trying to tell me here, Mr. Goode?
Commissioner Gort: Let's get rid of it.
12 August 11, 1998
Vice Chairman Plummer: I understand. We all agree that we've got to get rid of it but are you showing that
as gone and less than the four million dollars ($4,000,000)?
Mr. Goode: Now, this is your Budget Director's spreadsheet so, I'd better ask him.
Mr. Warshaw: Right, this is our spreadsheet, Commissioner.
Vice Chairman Plummer: You don't take credit for that and you will not be ... I don't blame you either.
Commissioner Gort: I don't blame you.
Mr. Goode: We have suggested, strongly, that some other options be looked at to try to dispose of it, even
if you incur a loss on a multi -year basis to work your way out of it. But that doesn't relate to this four
million dollars ($4,000,000)
Vice Chairman Plummer: Well, I think we've tried in the past. Mr. Mayor, at this point, I'll conclude by
making a statement.
Mayor Carollo: If I can, J.L., before you do?
Vice Chairman Plummer: Sure. I'll yield.
Mayor Carollo: I think the best way that we can proceed is, if we would limit the questions to what Mr.
Goode has presented to this body on the options that the Budget Advisory Committee has given us, items
that are relating to issues for administration. I think it's best that we deal with them separately. So, having
said that, before Commissioner Plummer concludes with his final words...
Vice Chairman Plummer: He concluded.
Vice Chairman Plummer: Mr. Mayor, I heard the comments of my new colleague on the block, Mr. Joe
Garcia, I think he was introduced as. Mr. Manager, I'm going to vote on something today and I'm going to
vote on something today that's going to be acceptable, not to these people and not to me, but it's going to be
to that heartless group downtown, who are phantom in nature, called the Oversight Board. But I want to tell
you something, Mr. Mayor, Mr. Manager, I'm only voting for something today predicated on a motion
which I'm going to offer and that is, that you be mandated, mandated, not maybe, but mandated that you
will reduce the City's budget in the coming year by one percent a month and demonstrate on a monthly
basis to this Commission that you have accomplished one percent a month deduction. That will put us in a
position, hopefully, with the time that we have to next year come and eliminate the fees that we'll be
imposing today.
Mayor Carollo: For how long are you saying that the Administration is suppose to reduce the budget by one
percent?
Vice Chairman Plummer: For 12 months.
Mayor Carollo: For 12 months. Well, that is going to come to, approximately, Commissioner...
Vice Chairman Plummer: What we need.
Mayor Carollo: No, no, no, no. One percent of our entire budget is approximately two million eight
hundred and fifty-five thousand dollars ($2,855,000). So, what you're talking about is...
Vice Chairman Plummer: Three million.
Mayor Carollo: We're going to be raising some thirty-five million dollars ($35,000,000) or reducing our
budget, which is, in essence, what I understand you're saying, reducing our budget by some thirty-five
13 August 11, 1998
million dollars ($35,000,000). So, in effect, if we're going to be reducing the budget by thirty-five million
dollars ($35,000,000) out of a total budget general fund of two hundred and eighty-five and half million
dollars ($285,500,000)...
Vice Chairman Plummer: Is it two eighty-five or three hundred?
Mr. Warshaw: Two eighty-five.
Mayor Carollo: Well, I'm talking about the General Fund. Two hundred and eighty-five million dollars
($285,000,000) for next fiscal year. Three hundred and eight was for this one. You know, we're talking...
Vice Chairman Plummer: We're talking about.. just about what the deficit is. That's what I'm talking about.
Mayor Carollo: No, no. We're talking about some twenty... twelve percent or better of our budget. That's
impossible. There's no way that we can even begin to come close to that.
Vice Chairman Plummer: Mr. Mayor, I come from business and business says one thing. You don't spend
money you don't have. Now, all I'm saying to you, it was my understanding that one percent a month would
equate itself to the deficit that we're experiencing. If it's less than one percent, if it's a half percent, fine.
But what I'm saying is, my vote today will be predicated on a guaranteed mandate of the Manager to reduce
the budget on a monthly basis so that, at the end of 10 months ... I would hope maybe 10 months ... that, in
fact, the deficit would be wiped out where we could eliminate any fees that we're going to be forced to
impose today. That's my vote. Maybe no one here agrees with me. God bless them. I'm entitled to my
vote and that will predicate my yes or no vote.
Mayor Carollo: And we respect that, Commissioner. However, it is my obligation to inform you of the
realities that we have to face with that. And I would advise the Manager, the Budget Director and the City's
Administration that, if they feel the same, that that cannot be done, that it is also their obligation to state that
for the record.
Commissioner Regalado: Mr. Mayor, if I may. Mr. Goode?
Mr. Goode: Yes, sir.
Commissioner Regalado: I have a question. Actually, two. One of the issues that you addressed is the
possibility of not filling vacancies this year. The Oversight Board has been sort of adamant in that position.
Taking into account the fact that you all represent a group of people that deal daily with the budget and
you, yourself, had to do that for many years in the County, do you think that, if this Commission will take
that recommendation and approve it, that the Oversight Board would reject that or they would accept it?
Mr. Goode: Well, Commissioner Regalado, I believe that they would accept the essence of the
recommendation that we have included in our report. Because the key to it is, you're not eliminating the
positions and you're not waiting an entire year to fill them but you're staging them in such a way that
actually there's so much logic to it. There's just so much this City can do to take on new employees at any
given quarter or in one-third increments. So, I feel pretty confident that, without having spoken to them,
that they would accept the kind of a rolling, staging of the filling of the positions that we've suggested.
Commissioner Regalado: The other one is a very philosophical question. You said something that, you
know, should be said. The fact that whatever we do can be changed in the future. The fact that whatever
we do, we can look for ways to bring revenues in the immediate future or the near future and, yet, we've
been criticized by the Oversight Board for saying that. For saying that we're approving this but, in the next
year or so, we're not. Do you think that, from the philosophical point of view, that they would accept that
concept?
Mr. Goode: The key to it, Commissioner, I think is how structural the change is that you make. That, if,
during this coming year ... let's just take hypothetically ... to meet J.L's criteria, you might even have to
transfer some function to another governmental jurisdiction or something to save that amount of money. If
14 August 11, 1998
you did that, that's a structural change which forever changes the revenue and expense budget. If you do
other things ... as an example... another example. If ..I think the Manager's contemplating an RFP, which
might out source a part or all of your Risk Management function, including the management of Worker's
Comp, which just parenthetically, is one of the worst I've ever seen.
Vice Chairman Plummer: Fraud.
Mr. Goode: If you start showing structural improvement on the expense side in the way you manage
Worker's Comp, then that is something that the Oversight Board or any logical person would accept as ... that
can be rolled over into future years. So, the key is to avoid the one-time deals, whether it's a sell of an asset
or something that isn't going to recur in the future year but makes substantive change on the expenditure
side, so that that savings accrues in future years and it's not just a one-year deal. And, on that basis, I think
the Oversight Board would be very accommodating.
Commissioner Regalado: Thank you.
Mayor Carollo: Commissioner Gort, you've been patiently waiting.
Commissioner Gort: Mr. Mayor, I think it's important to understand that this City has gone through a lot of
changes in the last two to three years and we inherited problems that we've discussed that's been coming for
a long time coming. The problem that we have today is, staff has been instructed to reduce costs. That
cannot be done overnight. We need to present a budget on Monday. For example, I got a call from one of
my neighbors from Grapeland. There was a group that got together yesterday and this is the question that
I've asked for the last year and I have not received an answer yet. We have one of the best sanitation service
of any city. We have four pick-ups a week. Now, some of the people in Grapeland asked me, how about if
we have trash pick-up, instead of once a week, once a month? And try to locate places within
neighborhoods where people can bring it, like the County does. I've asked that a year ago. I have not
received an answer. If it's worth it. If it's feasible. If we can save or we cannot save. I think these are the
things that staff s got to look at. I think we heard in the ... we read in the paper what the Budget Director and
the department directors do not agree on the budget. That everybody overpasses the budget and pass the
budget. I cut my budget by twenty thousand and still have the same staff and we're still providing the same
service. I think we need to show the community, yes, we're going to have to pay something but, at the same
time, we do everything possible to maintain the services and cut some of the waste. I think that's what
people look at, not only in the city, but in the County, in the State and the Federal government. I mean, if
the Federal government was able to have a surplus this year, I'm pretty sure we can do it. But, at the same
time, when the Manager comes to a right decision, we've got to make sure that we vote on it. Let's take the
politics out of it.
Vice Chairman Plummer: Mr. Mayor?
Commissioner Gort: I have one more question.
Mayor Carollo: Go ahead.
Commissioner Gort: Because we vote on so many of these different plans and Five -Year Plans, I'm a little
confused right now. My understanding is, we had voted on a Five -Year Plan before the election, am I
correct?
Mr. Warshaw: Yes, sir.
Commissioner Gort: We did? And then, after the election, there was a different Five -Year Plan?
Mr. Warshaw: There's been several.
Commissioner Gort: There have been several. The difference from the original Five -Year Plan that we
voted before the elections and the last ones that we've had, what are we talking about in differences?
15 August 11, 1998
Mayor Carollo: Million...
Commissioner Gort: This is something that needs ... no, I understand but I want to have that figures.
Mr. Warshaw: Well, I gave the chronology before. It's a little bit complicated to answer in a simple way.
But let me just tell you about the last Five -Year Plan.
Commissioner Gort: Let me ... the reason I'm asking this question, Mr. Mayor and Commissioners, is
because my understanding was, that when we adopted that Five -Year Plan before the election, it was
supposed to have been a balanced budget and we have made some decisions... some increases and...
Mayor Carollo: But what happened, Commissioner...and let me be very precise about that. The
Commissioners that were present here then, yourself, Commissioner Plummer, Mr. Regalado,
Commissioner Teele, Commissioner Sanchez were not here then, voted to approve the Five -Year Plan.
Commissioner Gort: OK. That's the difference.
Mayor Carollo: Then that was before the absentee ballot election. After that election, that whole plan was
changed and there was a truck full of sand that was brought out there and we were told that our problems
are going to be resolved with sand dollars. The five hundred positions or so that were going to be laid off,
that you all know that we cannot possibly do that with the contracts that we have and with the serious cuts
in services that we will have that will affect life and property in this City. So, in essence, what was then
given to the Oversight Board in April, which ... I made my statements there and I warned them that there
were a lot of major question marks in that budget ... was a budget that was approved for this fiscal year,
different than the one that we had approved before by millions of less dollars than we had approved in the
previous budget, when we had agreed that there would be a fire fee in "X" amount of dollars and that's the
difference. And to make up for those millions less, we've been eaten up dollars from other areas, including
the sales of property that we made during that time.
Commissioner Gort: So the major differences... now that I got this in front of me ... it was the fire fee?
Mr. Warshaw: That was the difference.
Commissioner Gort: One of the reasons we agreed to the fire fee and then, after we have the public
hearings and we talked to different people... because we didn't figure it was a fair fee to everyone. It was
just a fee that was just placed in a certain segment of this community and that's ... OK. I wanted to refresh
my memory and bring it into the record.
Mr. Warshaw: That would...
Commissioner Gort: The difference is the fire fee of thirty million dollars ($30,000,000), that's what caused
all of the problems that we have today. I just wanted to make sure I put it on the record. Thank you
Mr. Warshaw: Yes, sir.
Vice Chairman Plummer: Mr. Mayor, if I can clarify my statement of before and I guess maybe I
misunderstood myself What I am saying is, is the reduction of one percent or whatever the percentage
would be, including whatever additional revenues we are able to generate so that, at the end of the next
fiscal year, that we are twenty-four million up and can eliminate any fees that we have to make today. As
you know, one of the things that we've talked about is the possibility of reappraisal of buildings in this
community and the indication is that could be up to thirty million in itself. So, what I'm saying to
you ... because of the timeframe, that we'll not have the opportunity to do that ... the Manager is under an
obligation on the September agenda to come back with a recommendation of a company who does that and
will be giving to this Commission the latitude of hiring a company to do it. So, what I'm saying to you, my
opinion is saying that not only cuts but additional revenues by the end of the next 12 months must equate to
whatever we impose here today, so that next year it can be totally eliminated and maybe even create a
surplus.
16 August 11, 1998
Commissioner Teele: Mr. Mayor?
Mayor Carollo: Commissioner Teele.
Commissioner Teele: Mr. Mayor, I too want to express our City's appreciation to Mr. Goode and the
Mayor's Budget Advisory Committee. I, particularly note, with some degree of pleasure, that the ethnicity
and gender of the Commission was enhanced to include all segments of this community and I think that we
should never get so busy with issues that we don't fully engage all of our resources in the community and
we should not exclude any. I know, Mr. Goode, your personal reputation and I appreciate, Mr. Mayor, your
responding in a way to be inclusive. Mr. Goode, I have, essentially, four concerns or four questions, areas
based upon your report and your subcommittee report and I have had the opportunity, along with staff, to
examine it and to try to understand it. The report is dated August 7th and in that report you noted a deficit
for FY '93, 1 believe, of eleven point six million dollars ($11,600,000) in revenue. Has that number been
adjusted or addressed? There are at least three different numbers floating around and, with all due respect
to my colleagues, we can get the waste out of government. We can do a lot of things but, at the end of the
day, it's sort of like my football coach ... and I was never a good football player in junior high school. Maybe
it was elementary school. As I got older, I got less and less proficient. But I was a tackle and he used to say,
don't look at his feet. Look at his belly button. If you know anything about football, if you watch
someone's feet, you're liable to get faked out of position. Let's focus in on the belly button here, which is
eleven point six million dollars ($11,600,000). What's the number that you all agree on now? The Mayor,
the Governor's letter and the Oversight Board noted, I believe, fourteen million and the document we have
here today Annex "A," is showing sixteen million. So you're at eleven. The Oversight Board's at fourteen.
And the Manager's summary today is sixteen million. Let's just focus in on that number. What is the deficit
for FY '99?
Mayor Carollo: If I could interject for a second, Commissioner, to try to have your question answered in
the most proficient way. Dipak, as our Budget Director, can you explain to Commissioner Teele...
Commissioner Teele: I understand... Mr. Mayor, I understand. I want to know ... I mean, I thought we would
just deal with Mr. Goode's issues and then we would hear from Mr. Dipak. But anyway you want to do it...
Mayor Carollo: Right. But the question is one that Mr. Goode might not be able to give you the answer,
possibly. That's why I'm trying to...
Mr. Goode: Mr. Mayor, on the...
Commissioner Teele: See, there's an honest difference of opinion, I think, in ... with the Oversight Board,
with the staff. I know that from the meeting yesterday, at least from the memorandum that I have here.
There is a substantial difference.
Mayor Carollo: On a couple of issues.
Commissioner Teele: No, on the budget deficit, which is a big number. I mean, it's a four million dollars
($4,000,000) difference.
Mr. Goode: Mr. Mayor —through the Mayor to Commissioner Teele, the key number that the Budget
Advisory Committee was using was that eleven point four, eleven point five million dollar ($11,500,000)
number. Two things have happened since we met. One is, there is some question on ... to what extent the
City's going to receive recurring Off -Street Parking revenue fees, and that on your Draft-B or page two, at
two point two seven five million for FY'99. That is one of the key differences. Then the other one...
Commissioner Teele: Does yours assume, Mr. Goode, if I may, that the Off -Street Parking funds are in
here and unchallenged? Is that...
Mr. Goode: Yes, it does.
Commissioner Teele: OK, OK.
17 August 11, 1998
Mr. Goode: Then the only remaining item that we did not deal with is the last line item on that page. We
didn't set aside a budget reserve per se. So, since we have met, there's been a budget reserve, which shows
on the last line on that page. That's the key difference.
Commissioner Teele: So, if I can understand this then, your eleven point six is plus then two point six for
Off -Street Parking?
Mr. Goode: Two two seven five, right. Two point two seven...
Commissioner Teele: Two seven...
Mr. Goode: Two two seven five.
Commissioner Teele: Two two seven five. And plus two point eight reserve?
Mr. Goode: Yes, sir.
Mayor Carollo: Two point eight five five point one three two.
Commissioner Teele: So, that's rounded off to five million dollars ($5,000,000), plus eleven point six
rounded off, right at sixteen million dollars ($16,000,000)... fifteen and a half, sixteen million dollars
($16,000,000)?
Mr. Goode: Yes, sir.
Commissioner Teele: OK. So, the order of magnitude for FY '99 is somewhere between eleven point five
and sixteen million dollars ($16,000,000), dependent upon the assumptions related to Off -Street Parking
and the reserve?
Mr. Goode: Yes, sir.
Commissioner Teele: OK. Now, let me go on. The one issue that I am really concerned with. Did you all
take note of any of the findings of the tax and the Governor's or the Florida Constitutional Tax and Budget
Tax and Reform Commission in making your recommendation?
Mr. Goode: No, sir, not to my knowledge. I happen to have some copies of that, but I don't recall that it
came to play in this. We really used the summaries of the former two reports that came out of the Steirheim
Group, out of the Blue Ribbon Task Force and then the balance of information we received was largely ... it
largely came through the City Manager and the budget staff.
Commissioner Teele: OK. One of the principal tenants of the Governor's, of the Florida Commission... it's
actually much like the Florida Constitution Revision Commission. It meets every 20 years as well ... is that
no City or no level of Government should be beyond eighty percent of the ... and I may be paraphrasing this
but it's my understanding. Eighty percent of the constitutional millage. Essentially, what the Commission
is clearly stating is that when a municipality is beyond eighty percent of the constitutional millage, you're
basically red lining your budget finances, particularly in the area of flexibility or future Commissions or
future governmental bodies. And this wasn't relating to City of Miami. It should note that the only City at
the time of the Commission, which was in 1987, I believe, that was at that number was the City of Miami.
There's no other city ... major city in Florida or County —there were some smaller cities ... that are above eight
mills, other than Miami. Your Commission, at the same time, recommends that we go from the current nine
point five, nine point six, to 10 mills. Every report that I've read from Moody's, from Standard and Poor's,
specifically notes the ... any city that is approaching... or any governmental body that is approaching its
elasticity in terms of millage and, yet, you all recommended 10 mills and I note, with some chagrin, that
even some of the editorial boards have been suggesting that. How do you rationalize taking away from
future Commissions, forever more, the 10 mill ... you know, any ability to respond to any emergency or any
circumstance. And from a structural deficit point of view, it seems to be a giant step in the wrong direction.
18 August 11, 1998
Mr. Goode: Well, Commissioner, our conclusion was based more on the exigencies of the situation or the
timing and the need to try to share the pain within several revenue items. We don't believe you can spend
your way to meeting the Oversight Board's strong criteria at this stage and time. We believe it has to come
on the revenue side and our hope was that the Commission could take a little of this, that and the other so
that it wouldn't be extraordinarily negative to any particular group in the community. I frankly tell you,
Commissioner Teele, we're really trying to buy time because if this Commission, either on the revenue side
or other non -property tax sources or on the expense reduction side, as the coming year progresses and as
you make progress, you have the option of backing that off. But I think, frankly, we're just now in a corner
and we were just looking for ... kind of a potpourri of services.
Commissioner Teele: Mr. Goode, I want you to know that I really appreciate the recommendations of the
Committee but ... I mean, I want to be intellectually honest. I cannot foresee any circumstance that I would
vote in '99 to increase taxes, property taxes. I think it's a policy issue that is fraught with implications, as it
relates to our bond rating and our credit rating. Particularly, I think it almost encourages us to take that as
an easy solution, as compared to some of the harder solutions that we really have to take and that is,
whether or not we can afford the services that we're providing at the cost we're providing them. And I
think, ultimately... and Commissioner Gort just raised the issue in a different way, as it related to people
saying that ... can you really afford to pick up trash every month? No, twice a week? Is it twice a week,
Commissioner?
Commissioner Gort: Once a week.
Commissioner Teele: Once a week, as compared to that? So, I commend you. But on increasing
ad -valorem property taxes, I am not going ... I think there's just too many other options and ... I mean, I would
have preferred if you all had addressed that a little bit differently as sort of as the last ... as a last tear but, as
Vince Lombardi says... continuing with the football analogies..."the future is now." So, make...
Vice Chairman Plummer: He didn't say a damn word about the belly button.
Commissioner Teele: He didn't say anything about the belly button but he did say the future is now. Going
to the last page of your report. The thing that I guess that has troubled me more than anything since I have
been here as a Commissioner, is that it seems that the Commission is taking an awful lot of abuse and heat
from the public and I'm not talking about from the tax payers. I'm talking about from the policy and opinion
leaders of this community. I read in the Miami Today, the Miami Commission refuses to do this.
Everywhere you looking, it's the Commission. And, yet, you just heard what our Manager said, that this
Commission was totally misled four months ago in approving a document. And I call ... I'm going to ask the
Clerk to make a copy of that because I think that statement and the statement that the Manager made is
instructive to all of us. It argues, I think, for some degree of accountability, which we do not have, and we
continue down this road of not having any accountability. We have the same budget director, who I have
confidence in. I, Arthur Teele, have confidence in Dipak. I want you to know that. But, at the same time,
the Manager's saying, we just approved a budget three months ago that was totally false. I mean, how do
you justify that? How do you rationalize that? We have the same comptroller. And I have confidence in
Lourdey Reyes and I am ... commend the Manager for bringing on a new Finance Director. But there is no
check and balance. Let me bring you to this question, Mr. Goode. We suggested, through the Manager,
you let every Manager and department know that FY'99 is a new day. And that absent such an emergency,
they will be held accountable for balancing their budgets. I mean, that's common sense. I mean...
Mr. Goode: It's 101.
Commissioner Teele: One oh one. Actually, it's one hundred. Now, in the previous sentence ... and this is
what really bothers me, Mr. Mayor and Commissioners. This is what bothers me more than anything.
Because the commission is taking the heat for everything. In the previous sentence you say, Department
Heads have not been responsible for accountability of their budget... for the line item administration of their
budgets or remaining within their annual budget allocation. Now, I'm going to tell you something. In
Washington, it's called the Anti Deficiency Act. And, Mr. Attorney, if I have to propose the City of Miami
Anti Deficiency Act, I'm prepared to do that as an emergency ordinance next week. Is there any department
19 August 11, 1998
that is over their budget, that they have not come to this Commission, this legislative body and sought
approval for? And, Mr. Attorney, you and I have had this discussion. Your budget is over and I think you
can justify part of that by Commission action, OK. When the Commission approved a severance pay or
this, that and the other, there are some issues there. But I need to know ...
and I'm asking you, Mr. Manager,
for once, to put something in writing and give this Commission, please, a list of every department that is
over their FY'98 budget this year and a reason why. Because this is all just blame the Commission, if we
don't have some degree of accountability, Commissioners. Now, did you all find the departments were over
their budget?
Vice Chairman Plummer: All of them.
Mr. Goode: Well, we didn't try to zero in on this FY budget. We've looked at a pattern and the pattern has
historically been, the budgets get over spended and then the staff has to scramble to find either some other
funds, some other account, transfer funds, dip into a reserve or whatever.
Commissioner Teele: But see, that's what got the City in trouble.
Mr. Good: That's exactly right.
Commissioner Teele: That's exactly what got us in trouble. Look, it doesn't make sense for us ... and with all
due respect to Commissioner Plummer. What he is proposing, in principle, I agree with but it's illegal.
That's an unlawful delegation. We cannot delegate the budget making responsibility to the Manager and
say cut the budget one percent every month. That's an unlawful delegation. We are the legislative body.
Only we can appropriate a budget.
Vice Chairman Plummer: Oh, that's fine. But I'm just saying that we will ask him to do it and he must do it
and present it to us and if he don't, we get rid of the Manager.
Commissioner Teele: OK. But, J.L., that sounds all fine but the fact of the matter is, we've got to do it now
before Monday.
That's the problem.
Vice Chairman Plummer: I understand that.
Commissioner Teele: And the problem is this, it doesn't make sense for us to approve budgets if the
departments are going over budgets. No department should be over their budget. And the reason you have
budget adjustments is, you come back and say, we're going to go over our department. We're asking
permission to amend the budget.
Vice Chairman Plummer: (Inaudible) department is how much over their budget?
Mayor Carollo: Mr. Manager, can you...
Mr. Warshaw: I'd like to respond to that.
Mayor Carollo: Can you come back to this body at the next time that we meet and present a list to this
Commission of all and any departments that might be over budget?
Mr. Warshaw: Yes, sir.
Mayor Carollo: Including my department, Mayor's Office, including Department of the Commission,
including every single department?
Commissioner Teele: And a rational? Mr. Mayor, and there may be some circumstances where, based
upon Commission action, a legislative action, you go over your budget. Because we direct something. But
the fact of the matter is, it should ... the authority to legislate ... to appropriate money is the only thing that the
Commission really has as a matter of its structural responsibility of government. And if we're
20 August 11, 1998
administratively appropriating funds, then we, basically, have no budget process here. So, I mean, I
commend you again for bringing this to the attention but it never occurred to me until I read this, that the
City of Miami's budgets may be over budget in terms of a normal course of business.
Mr. Warshaw: Mr. Mayor, may I just briefly respond?
Mayor Carollo: Of course.
Mr. Warshaw: And, Commissioner, I respectfully understand exactly what you're saying but there's a
converse and very honest response and it's something I'm sorry to say, but it's the truth and I don't want to
be associated with a budget presented to you that's not truthful. I told you in the last Commission meeting,
I've been here for a lot of years working on Police budgets. So, the converse statement to what you made is,
department directors' budgets are underfunded year after year and they're underfunded because, in the past,
managers have said you will live with this number whether it's the right number or not. And I submit to
you, that as recently as three months ago, four months ago, I sat right here in the back room going over my
budget and I was told, you're going to live within your means, even though they were contractual, legal
commitments that exceeded the line item in the budget. I'm telling you that these are items that were
approved by this Commission for hundreds of thousands of dollars and the words were, settle for less.
Well, you and I both know, there's no way to settle for less if those contractual commitments are made. So,
the honest answer is, that budgets need to be funded properly so that department directors know on day one
of the fiscal year, that they have to live within their means. But there is, at least, sufficient dollars to pay for
the people who are working on October 1 st of each year. And I can tell you, there's been many years here in
this city where the budgets were underfunded to the point where it couldn't even pay for all the employees
who started the fiscal year on October 1st, assuming they all stayed for the rest of the year. And that's not
the department director's fault. That's the fault of underfunding the budgets to begin with and that's
something that I'm going to put a stop to. And that's why I'm sharing these numbers with you, even though
they're painful. But this is the true deficit.
Vice Chairman Plummer: Does that hold true for the Police Department?
Mr. Warshaw: Yes, sir.
Vice Chairman Plummer: Because ... I mean, I don't remember this City Commission ever approving
overtime... additional overtime in the Police Department and, yet, the Police Department is 30 to 40 percent
over budget of what was budgeted for overtime, am I correct? And we didn't approve that. To me,
overtime is poor planning. Somewhere along the line people did not anticipate and did not live within their
budget. You were granted by this Commission five point two ... and these are not my numbers. Don't get
upset, OK? Five point two is what I was told you had in the budget and already you're at seven point five
and we have July, August and September to go. We didn't tell you to do overtime but it's there. And I'm
looking at that number, probably going to be nine. The way it's going, it's going to be nine before it's all
over. So, I ... you know, it's a nice idea to say, hey, you were told you must do this. But a good manager, in
my opinion, when he is told you must live within your budget, you've got to live within your budget and
you've got to cut. And you've got to stand in front of that City Commission and you've got to say to that
City Commission, that budget is wrong because contractually, that's not enough money to cover what I've
got contractually. Did you stand up and say that before this Commission? No. And you know why, you're
scared of a Manager. I shouldn't say scared. You don't want to contradict the Manager. But, we, the
people, as Art Teele said, who catch the hell and catch the heat. When we ask the questions, we don't get
the answers and they wonder why and we wonder why. I'll tell you again, whatever the percentage is per
month to overcome any deficit is my ... going to be my final vote today. Without it, that's it. Amen.
Commissioner Teele: Mr. Mayor? Mr. Goode's point ... I mean, the point that Mr. Goode's memo makes ... I
mean, it may be one hundred but, certainly, I would have failed the course because I'll telling you, I've been
here for nine months or so. There is no way that anyone could convince me ... and I heard every word Chief
Warshaw says. I categorically reject every word. There is no way any department head should be
overspending their budget. And if the Commission appropriates a certain amount of money, the Manager
can't change that. The Mayor can't change that. Only the Commission can change it. I mean, I'm prepared
to say that within the line items ... for example, on overtime or something like that ... and you'll have to fight
21 August 11, 1998
with Commissioner Plummer on it, but I think the department head ought to have the flexibility to move
around numbers within an overall budget within five or six percent, ten percent, some range, but that's
where we are. We've got to develop legislation that prevents that. Because it's what Mr. Goode is saying
and this is what I thought the Oversight Board stopped. I thought this is what Merritt Steirheim stopped. I
thought this is what Mayor Carollo stopped, was the moving around of money from department to
department to make the things work. Because, at the end of the day, you wind up with a musical chairs
situation. There's not going to be money in somebody's budget. So, I think what we're asking for or what
I'm asking for, Mr. Mayor and Mr. Attorney, is that we need legislation to make the Commission be on
level with the Manager. Because if the fear that the department heads is that the Manager is going to take
you to the wood shed, you need to be just as concerned, department heads, that the Commission is going to
take you to the wood shed. And the way to do that is to copy the Anti -deficiency Act, which is a part of the
Federal government, that says, any department head that over spends his budget must send a letter to the
President of United States, the Speaker of the House, the President of the Senate, the minority leader in the
House, the minority leader in the Senate, that they are going over their budgets, explaining why, and the
penalty, of course, may be ... if Congress approves the act or, in this case, the Commission ... a felony. We
just cannot have department heads that are not clear that they don't have the authority to over spend their
budgets. And, with all due respect, if the budget is, whatever it is, that's all the services you can provide.
That's all you can provide. The solution is not to continue to provide those services. The solution is to cut
back.
Mayor Carollo: Again, Mr. Manager, can you provide this body with all the departments that are over
budget?
Mr. Warshaw: Yes, sir.
Mayor Carollo: And the reasons why? Anyone else would like to ask questions of Mr. Goode? Mr.
Goode, I thank you very much again, you and all the members of the Commission. Thank you, sir.
Commissioner Regalado: Mr. Mayor, I have a question for the Manager.
Commissioner Teele: Would you yield just one moment? Mr. Mayor, I would ask that, if we survive all of
this, that you invite Mr. Goode and his committee back for an appropriate presentation. And, if we don't
survive...
Vice Chairman Plummer: Don't worry about it. Come out to the funeral home for the viewing.
Mayor Carollo: They're being made right now, whether we do or not.
Commissioner Regalado: Mr. Manager, I have some items here that I'd like to hear your views on it and...
Mayor Carollo: Commissioner, if I may. I had asked that we would deal strictly now with the items that
are going to help to resolve the immediate problem that we have of balancing this budget by next Monday.
Commissioner Regalado: Absolutely.
Mayor Carollo: If these are items that would do that, I'll gladly...
Commissioner Regalado: Yes, they are.
Mayor Carollo: ...be able to hear them. If not, I would ask that you'd leave them for the appropriate time
that we deal with all the other items that would help reduce the budget.
Commissioner Regalado: They are, Mr. Mayor. On the comparative analysis of the budget last year and
this year, Mr. Manager, on line 10 you have Unclassified Salaries, 1997, eleven point six million; 1998,
twelve point six million. That's an increase of nine hundred and eighty-eight thousand dollars ($988,000).
The explanation is that additional positions were recommended by the Oversight Board. My question is, is
this part of the hundred and forty-one new positions?
22 August 11, 1998
Mr. Warshaw: The answer is partly yes. But let me answer that another way, Commissioner, and I'm glad
you asked me about unclassified positions. Because, unfortunately, in the City it often takes a long time,
because of registers and tests and personnel system, unclassifieds, even at the lower levels for clerical
people, are often hired because there are not sufficient registers available and because of that, the number of
unclassified in the City, that is often thought to be only executives is not just executives. So, I don't want to
mislead you and say that all those positions are necessarily as a result of the Oversight Board. There could
be some other positions in there that were filled in lieu of the fact that there may be had been an emergency
and there was not an existing civil service register.
Commissioner Regalado: What you're saying, Mr. Manager, is that, out of that increase of almost a million
dollars ($1,000,000), we could save some money for this budget, for this Commission to approve before
Monday?
Mr. Warshaw: I'm not sure I understand the question.
Commissioner Regalado: Well, we have to bring a new budget before Monday. What I'm saying is, out of
this increase, can we save some of this money for this budget?
Mr. Warshaw: I think the savings would be by not filling or delaying or staging the balance of the
vacancies. Because of the 141, we've only filled 53 and there's less than two months to go in the fiscal year.
So, carrying that forward to 1999, adding it to the 113, plus some regular vacancies, we wouldn't be able to
hire all those people in that timeframe anyway. So, there will be a savings for next year.
Commissioner Regalado: OK. So, on salaries, we could have a saving before Monday? You could come
up with some numbers to tell us this is what we can save, one dollar ($1.00) or a hundred thousand dollars
($100,000) or a million dollars ($1,000,000).
Mr. Warshaw: Exactly, I can do that, yes
Commissioner Regalado: OK. Line...
Mayor Carollo: If I may, Commissioner. We already are anticipating in the recommendations that we have
been given some two million dollars ($2,000,000) of savings by not hiring everyone at once, which we
could not do that even if we wanted to. So, I don't know if that's what you're referring to at this point and
time..
Commissioner Regalado: No, I'm not, Mr. Mayor. I'm referring to other unclassified positions.
Mayor Carollo: I will say this to you ... and that's an area that we could save at least a half a million dollars
($500,000) on, maximum around a million or so dollars that we could save on, on positions there. That's
my opinion. I've been speaking to the Manager on that same question of what could be saved? I think the
question has to be made, is it possible or not to finalize this budget with some certain numbers that we could
give the Oversight Board on that? I don't know if it's possible or not. That's going to have to be up to the
Manager to see how much of that he could do. What I would be willing to offer to this Commission, as a
suggestion, is that we ... if we're going to be heading this way in trying to include a part of that into this
budget proposal, is that we ask the Manager to come back with a figure that's reasonable, that he could do
within this timeframe, and it's going to have to be before Monday.
Commissioner Regalado: Mr. Mayor, I'm ready to present a motion. And what I was trying to ask is
precisely what you said just now, even ... not only the phase ... the position that will be phased out, but this
unclassified position. I am, agree with you on this area. But I have another question, just briefly, Mr.
Manager. On Line 340 of the budget, it says Other Contractual Services. On 1997 there was expenditure of
one point eight million. In 1998, three point two million. That's an increase of one point two million and
the explanation says only "increase needs."
Mr. Dipak Parekh:: Commissioner, Dipak Parekh, Budget Director. You have ... in the last three years
you've seen a pattern where we have used other contractual services in lieu of the people at General
23 August 11, 1998
Services Administration, specifically, in terms of the motor pool and heavy equipment. You have now a
bigger car fleet, which needs to be repaired. So, obviously, we're using other contractual services to
accomplish that particular task.
Vice Chairman Plummer: I think we ought to go private with the Law Department.
Commissioner Regalado: But here ... OK. So, why is it on Line 670, Repair Maintenance Outside, 1997,
one point seven million; 1998, two point nine million. That's an increase of one point two million.
Explanation: Greater needs to have equipment repair outside due to workload at GSA (General Services
Administration). What you're telling me is that Line 340 and Line 670 is the same?
Mr. Parekh: No. They are addition.
Commissioner Regalado: OK, they are additions. So, we are adding two million four hundred thousand
dollars ($2,400,000)?
Mr. Parekh: Absolutely, absolutely.
Vice Chairman Plummer: Easily.
Commissioner Regalado: Two million four hundred thousand dollars ($2,400,000)
Mr. Parekh: Absolutely.
Mr. Warshaw: And, Commissioner, I want to qualify this but I know in other contractual services you also
have ... we've come before the Commission many times in lieu of hiring new employees. We've had to
contract with dispatchers, ID technicians, stenographers and others and I'm not sure if that's in there.
Mr. Parekh: That's in there.
Mr. Warshaw: But if it is, these are in lieu of salaries.
Commissioner Regalado: Mr. Manager, I'm not disputing the needs. I'm just saying...
Mr. Warshaw: I understand.
Commissioner Regalado: ...that, if you see here the possibility of saving fifteen dollars ($15), not fifteen
million, fifteen dollars ($15)... because I think that, you know, the will of this Commission and the Mayor
and you is that, if we can save ten dollars ($10), it's ten dollars ($10) less that we have to do. I mean, what
I'm saying is, we're talking of an increase in two line items of two million four hundred thousand dollars
($2,400,000). Can we save something, is my question?
Mr. Warshaw: I'll have to look at the details that went into that line item. But I'll tell you in general terms,
as I've said before, no matter what happens with this deficit, I'm committed to continue to look at all of the
line items, including the personnel items, including the unclassifieds, where I've made several moves just
recently in the last week to try to bring down those numbers and you've got my commitment to continue to
do that in all areas.
Vice Chairman Plummer: Mr. Mayor, am I getting the impression we're not going to make a decision
today?
Mayor Carollo: Not if we're going to be counting every five, ten dollars ($10) that we're going to save.
Vice Chairman Plummer: Well, I'm merely asking the question because if, in fact, the answer is, it doesn't
look like it, then I want to proffer to the Manager what I expect him to come back with when we meet
again.
24 August 11, 1998
Commissioner Teele: Mr. Mayor. I would hope that we all would be in a position to do that but, before we
do, is the ... would it ... could we get a formal presentation from the Budget Director on where we are now? I
know you were moving in that direction twice and maybe I may have just cut you off or some other things
but I think it would be helpful, Mr. Mayor, and I think it would be helpful to all of us and the public, if we at
least had a snapshot of where we are yester... where we are today. This thing is changing. I understand
maybe the Manager's resistance in putting things in writing because things change but I think we've got
to ... you know, we don't have but five more days now, Mr. Mayor, and we need to know where we are.
Mayor Carollo: You're absolutely correct. This is why ... besides needing the Budget director to give a
presentation, this Commission cannot leave here today unless we give some kind of indication of which
way we're going. We don't have that much time left and if somehow some of us think that this is going to
be resolved by waiting... because, for the second time in mankind's history, a man is going to fall on earth
and is going to fall on this Commission, I don't think it's going to happen.
Vice Chairman Plummer: Well, Mr. Mayor, let me just, if I may. I'll tell you where I'm at and I'm ready to
vote on it tonight if you can come back and give me the answer, OK? I think I've laid the predicate of
where I'm at. The millage is there. It's in place. I voted for it. It's not going to be taken back for this vote.
So, that leaves us in two areas. It leaves us garbage and it leaves us fire. Now, under no circumstances, will
I vote to have a trash or garbage fee imposed on the condominiums. That's out, OK?
Commissioner Gort: There's none.
Vice Chairman Plummer: Second of all ... you don't understand. What don't you understand? No, explain to
me. You're...
Commissioner Gort: There's no garbage fee on condominiums.
Mayor Carollo: There's no garbage fee in condominiums.
Vice Chairman Plummer: There's no garbage fee to be imposed on the condominiums.
Mayor Carollo: Never has been.
Mr. Parekh: I don't think the ordinance, the way it is already indicated...
Vice Chairman Plummer: OK. Then I want to know how we can take the fire fee ... and this is going to be
unpopular... but I think we need to put it more heavily on the commercial aspect than we do on the
residential. And the reason that I say that is simply, that the business community can charge it off as a
regular business expense. The home owner cannot. And that's where I have a problem. Now, I need to
know from you how much we're going to need to raise ... we know, in the millage, it was four million, is that
correct?
Mr. Parekh: Four point seven...
Vice Chairman Plummer: For round figures?
Mr. Parekh: You're right.
Vice Chairman Plummer: I need to know how much we need to raise in the garbage fee. How much we
need to raise in the fire fee, without any, what they say, equal protection to the condominiums. Now, you
come back to me with that number and that's what I'm ready to vote for with the proviso that, in fact, the
Manager must come back in the next 12 months to this Commission and demonstrate, whatever that number
is you bring me, that he has either generated revenues or decreased expenses so that these fees, which we're
going to be forced to impose today, can be eliminated next year.
Mr. Parekh: OK.
25 August 11, 1998
Vice Chairman Plummer: That's where I'm at.
Mayor Carollo: Commissioner Gort.
Commissioner Gort: Let me tell you, since we going through the whole process, I think what
Commissioner here is saying is, we understand we have to do something. We have to increase some of the
taxes or some of the ... what do you call, tariff or the fees. But I think what we would like to see and the
public would like to see is, if you can go back and incorporate a two point... whatever it takes to do the two
point three or three point four million dollars ($3,400,000) from the if Off -Street Parking to be on it,
whatever we can do in ... I think Sanitation can go back to you and show if there is savings in doing trash
once a month because my understanding, Mr. Mayor, this will not take place until October the 1st, so we
have a whole month that we can educate the community and this is ... this came out from the neighborhoods.
Some of the neighbors got together last night in Grapeland. They called me and said, why don't you do
this? This is one way ... and find out how much savings we can do in that. Also, Chief, I know you haven't
had a chance to look into it but I think you have an opportunity to look at a lot of the employees that you
might not need, that being overpaid and see what you can do with that. Whatever reduction you can do in
costs and in savings, I'd like to see that reduction taken into the revenues.
Commissioner Sanchez: Mr. Manager, I just have a question for you. I just... maybe ... Depak, maybe you
could answer my question. Just...I just want to clarify on the primary recommendation made by the Budget
Advisory Committee, all right, where we went from raising the garbage fee by thirty-four dollars ($34)
when it was advised that it was going to be doubled, two hundred and sixty, so that is a significant less
amount that was projected, correct? They want thirty-four dollars ($34) increase on the garbage, correct?
Mr. Warshaw: Thirty-four dollars increase...
Commissioner Sanchez: Thirty-four
Mr. Warshaw: ...projected for 1999.
Commissioner Sanchez: Correct.
Commissioner Teele: We already approved that.
Commissioner Sanchez: No, we haven't approve anything.
Mr. Warshaw: Right.
Commissioner Sanchez: But let's just...
Mr. Warshaw: Projected in this memo.
Commissioner Sanchez: Then the twenty-four dollar ($24) on fire fee, correct?
Mr. Parekh: Right.
Commissioner Sanchez: Compared to the forty-eight that was...
Vice Chairman Plummer: Well, he's talking about the equipment.
Commissioner Sanchez: ...amended by or, you know, put on for it by the Advisory. Then we went
from ... the millage that went up ten percent, which it all depends on the property value. We went from three
hundred and fifty-seven dollars ($357) to a hundred and thirty-seven dollars ($137). Now, let me tell you
something. At least the people in my district, they're willing to help the City. The City is in a critical
situation. They're willing to give it CPR (Cardiovascular Pulmonary Resuscitation). Heck, they'll give it
blood. But, you know what, they're not going to donate a kidney. That's for sure. And most of the people
are not going to swallow that pill. That's it.
26 August 11, 1998
Mayor Carollo: Mr. Budget Director, can you begin your presentation?
Mr. Parekh: Commissioners...
Vice Chairman Plummer: Can I ask you one question real quick like? Something was said to me last night,
is that a true, Mr. Manager, the people that are operating the bus benches transferred and have not paid this
City and owe this City in excess of two hundred and thirty thousand dollars ($230,000). Is that a true
statement?
Mr. Warshaw: They owe us money and there's some action being taken, but I don't think it's two hundred
thousand.
Vice Chairman Plummer: Would you report back ... hello?
Mr. Parekh: Twenty-two thousand.
Mr. Warshaw: Twenty-two thousand.
Unidentified Speaker: Twenty- two thousand of the _ checks _
Vice Chairman Plummer: Twenty-three thousand. And that's checks that have not been forthcoming for
over nine months. OK, thank you, sir. I'm sorry. Nine months have they been after it was transferred.
Commissioner Teele: They haven't made any payments?
Vice Chairman Plummer: No, they didn't pay anything.
Mayor Carollo: They paid...
Vice Chairman Plummer: Free ride. I congratulate the Chief, Manager, Mr. Combo for getting the money.
Mr. Parekh: Mr. Mayor, members of the Commission. On the issue of this particular fiscal year, the City
anticipates ending the General Fund with a surplus of approximately forty-four million dollars
($44,000,000). Of those monies, we have to set aside reserves for the strategic initiatives, monies for the
Blue Ribbon Committees. We have State mandated reserves, which we have to also set. In the amount of
working capital, six point eight million; risk management of one point one million, and contingency of one
million. If we exclude all of those particular items in terms that they are reserved, we should hopefully end
up with a surplus of approximately three million dollars ($3,000,000). I need to preface this particular
discussion, that this fiscal year and going back again last fiscal year has been balanced by selling land. I
hope that answers Commissioner Teele's question on a primary focus as to where we will end up the budget
year end.
Commissioner Teele: Yeah, but I want you to answer one question when you make this statement. What is
the anticipated carry-over of reoccurring dollars going from FY '98, which ends on September 30th, to
October I? Because that's the ... you know, that's the belly button on this thing. Number one, we have to
have one dollar to be able to meet the Oversight Board's requirement. Number two, based upon all of this
great rhetoric that's going on and all these positions saved that haven't been hired, we have should be talking
about five, six, seven million dollars ($7,000,000) and you're shaking your head no, but we should be
talking about five six million dollars ($6,000,000), right?
Mr. Parekh: Absolutely.
Commissioner Teele: So where did the money go?
Mr. Parekh: The money went in a number of different places. One...
27 August 11, 1998
Commissioner Teele: Start out by telling me about how much are we going to carry over.
Mr. Parekh: Three million dollars ($3,000,000)
Commissioner Teele: Three million dollars ($3,000,000)?
Mr. Parekh: Yes.
Commissioner Teele: Does that include any sales of property?
Mr. Parekh: Absolutely.
Commissioner Teele: If you back ... I thought they wouldn't allow us to include sales of property as
reoccurring revenue?
Vice Chairman Plummer: It's not.
Mr. Parekh: No. Land sales, to a large extent, are used to offset non -recurring expenses...
Commissioner Teele: Right.
Mr. Parekh: . An the areas of capital improvements.
Commissioner Teele: If you take out all of the land sales.
Mr. Parakh: Which I did.
Commissioner Teele: Especially the one we just mandated the other day, that closed by August 15th. I
assume they closed because nobody said anything. DOT (Department of Transportation? We gave them
until September? We had Winn Dixie...if we back out all of those, how much reoccurring revenue are we
carrying over?
Mr. Parekh: If you ... no. If you start excluding all of those, we'll be in a deficit. That's why I indicated that
this budget this year has used land sales to balance its budget, especially Winn Dixie, in the amount of five
point seven million dollars ($5,700,000) and other land sales which have just been passed by the City
Commission over the last few months.
Commissioner Teele: In other words, we're not going to carry over any reoccurring revenue? Well, I mean,
the question that I think the Commission should be asking ourselves is, where did the money go? We didn't
appropriate more money. We haven't approved a new budget, have we?
Mr. Parekh: No, the only approved budget you have is a revised budget done in the month of April.
Commissioner Teele: So where did the money go?
Mr. Parekh: You had a fund balance of three million dollars ($3,000,000), which should be characterized as
non -recurring because the way this particular budget was balanced was on non -recurring revenues.
However, you're quite right in your analysis, that we should have had a fund balance in excess of seven
million dollars ($7,000,000)
Commissioner Teele: Right.
Mr. Parekh: Now, that's based upon a couple of items, which weren't basically followed through.
Commissioner Teele: But before you have to ... Dipak, you have to admit that only the Commission can
appropriate money. Only the Commission can adjust a budget, right?
28 August 11, 1998
Mr. Parekh: Absolutely right. I would also tell you, that's the same recommendations which several Blue
Ribbon Committees have come up with.
Commissioner Teele: OK. I don't mean to interrupt you. Tell me where the money went, please.
Mr. Parekh: Two million dollar ($2,000,000) was a capital improvement dollars, which should have gone
last fiscal year but didn't and it was charged non -budgeted this fiscal year, so that's two million dollars
($2,000,000). You have...
Commissioner Teele: What department?
Mr. Parekh: It was an unfunded CIP (Capital Improvement Project), which we were taking care of last
fiscal year. These were unfunded items, which have come up historically, which the City was taking care of
last fiscal year. So, in a nutshell, if that two million dollars ($2,000,000) was charged fully last fiscal year,
then the so-called fund balance of one point nine million dollars ($1,900,000) would not be there. You had
also this fiscal year...
Commissioner Teele: Well, you just'splained that tome.
Mr. Parekh: You have...
Commissioner Teele: There's a rule. Never ask a question if you don't know the answer. That was a dumb
question I asked.
Mayor Carollo: Better leave that one be.
Commissioner Teele: Yeah, let's go to the next one.
Mayor Carollo: Or we're back to square one otherwise.
Mr. Parekh: You had bills, which were not paid last fiscal years and that's a recurring problem which the
City has. It was an expectation that the City would discharge its financial obligation in paying all the bills.
In the area of Communication Services, you already have a deficit of over six hundred thousand dollars
($600,000). Last week I got another memo, which said we hadn't paid bills for ... a bill which came up two
years ago in 1996. That's about another hundred and thirty thousand dollars ($130,000). Furthermore, on
top of that, overtime needs have basically skyrocketed, especially in the area of Special Events. So, in a
nutshell, for the City...
Commissioner Teele: Yeah, but you...all you've really outlined was two million dollars ($2,000,000) and
hundred thousand dollars ($100,000).
Mr. Parekh: No.
Commissioner Teele: You said a hundred thousand dollars ($100,000) on some technology. Two million
dollar ($2,000,000) that was not booked, so that's two point one.
Mr. Parekh: Plus another six hundred thousand dollars ($600,000), which has already been paid out.
Commissioner Teele: Two point seven.
Mr. Parekh: Yes, so we're at two point seven now.
Commissioner Teele: For seven million?
Mr. Parekh: So far. Remember, I started with three million, so you have a difference of four million.
Commissioner Teele: OK. So where ... where is the money, Dipak? Just tell me where the money went,
29 August 11, 1998
please
Mr. Parekh: I'm trying to explain, sir. You had in ... in overtime, overall, you have an excess of the budget
around two million dollars ($2,000,000).
Commissioner Teele: So you have two million dollar ($2,000,000) in overtime? So J.L's. right. See, I
don't have a problem because, Don ... Chief Warshaw and I have discussed this. I don't have a problem with
the Police overtime being over budget as long as it's within the department. And we went through this a
hundred times. There was money in other accounts that were being moved to that. Now, you're telling us
two million dollars ($2,000,000) over and above the internal ... over and above the internal flexibility that the
department has, we're two million dollars ($2,000,000) in Police overtime?
Vice Chairman Plummer: Outside of their regular...
Mayor Carollo: Is that Police or Police and the Solid Waste included?
Mr. Parekh: Police and Solid Waste. Plus, there was a revenue, which was suppose to come in ... remember,
in the month of April, the City further obligated the Law Enforcement Trust Fund of another additional one
million dollars ($1,000,000). That's on top of the one million —one point eight, which was originally
budgeted and that one million dollars ($1,000,000) which is in terms of a projection not forthcoming
because we have another two months left and we don't see those revenues. So, you add another million on
top of that. So, those are the primary ones which have created this deficit.
Vice Chairman Plummer: Can I ask why? How much is that fund?
Commissioner Teele: Yeah.
Vice Chairman Plummer: Mr. Combo?
Mr. Warshaw: I'd love to answer that question. Let me tell you about that.
Vice Chairman Plummer: No, I mean...
Mr. Warshaw: No, I want ... I'll answer if you like.
Vice Chairman Plummer: The question simply is, the fund does not have that amount in it, is that the
problem?
Mr. Warshaw: The fund ... it's not that the fund only hasn't had that much in it. That was ... and that's exactly
what I was explaining to Commissioner Teele earlier. That was the famous weekend of February the 28th,
prior to the time on March the 3rd you got a budget that I referred to as being untruthful and I'll state it for
the record again, it was very untruthful and it had contained in there the savings for people who never left,
that million dollars ($1,000,000) that was never to be, and on and on and on. And the flags were carried
that it was a balanced budget but it was really fifteen to twenty million dollars ($20,000,000) in deficit.
Commissioner Teele: Chief, what do you recommend the Mayor and the Commission do to stop ... to avoid
that in the future? I mean, forget personalities because this is not about people afraid of their job and not
afraid of their job. Structurally, what can we do to ensure that there is a check and balance? We need to
hear from two people that this budget is balanced, OK? Now, how do we get there?
Mr. Warshaw: There's a lot of things to do. Obviously, the first one was the hiring a Financial Director in a
city that has not had a finance director in years.
Commissioner Teele: A finance director...
Mr. Warshaw: A clear delineation between Budget and Finance and, basically, Budget and Finance have
been for many, many years one in the same. That's number one. Number two, direct involvement of
30 August 11, 1998
department directors in the preparation of budgets, so that ... exactly what you said before, that a director
knows and is accountable for every dime that's in their budget. But they can be looked straight in the eye
and told, you've got enough money to, at the minimum, at the minimum, fund the people who are working
in your department from the beginning of the year. And I, respectfully, disagree with the comment you
made before about the issue of the dollars in the budget at the beginning of the year. You've got a
Manager ... if you've got a hundred people in your department and they all going to work for the same ... for
the entire year, for the entire 12 months, there has to be money in that budget to fund their salaries,
particularly, if they're protected by union contracts. So the underfunding of a budget creates a deficit at the
end of the year and then everybody throws up their hands up as to who's responsible. Well, I'm responsible
now and I take responsibility from this point forward and tell you that budgets will be funded appropriately
for the people who are there and people won't spend more or they will be held accountable.
Commissioner Teele: But see, Chief, that's the problem. We have a failure to communicate. You can't do
that. Only the Commission can. Only the Commission can approve a budget.
Mr. Warshaw: I understand that, but I can approve...
Commissioner Teele: And what I'm saying to you is this, it doesn't matter what you say or what the
department head says about the budget. It matters what the Commission says and only the Commission can
approve a budget. Now, what you're getting down to is this, we're going to need an affidavit signed by
every department head, before we approve a budget, that they agree that they can live within this budget and
that this budget will carry out the services that —the services that the Commission has directed. But it gets
back to one thing ... and, I mean, I don't mean to say this to you. Why didn't the Budget Director say it? I
mean, why do we have to go pass ... the problem is not going to be with you, per se, Mr. Manager.
Mr. Warshaw: I understand.
Commissioner Teele: Is it with the institution of the office of the Manager, which should be the Budget
Director is saying, this is not true. Mr. Dipak... and your last name is actually...
Mr. Parekh: Parekh.
Commissioner Teele: And I apologize to your family for referring to you as Mr. Dipak.
Vice Chairman Plummer: Call him anything but late for supper.
Commissioner Teele: But Depak, seriously...
Mr. Parekh: Yes, sir.
Commissioner Teele: ...why didn't you come forward? Help us to understand. Help me to understand, as a
Commissioner, what can we legislatively do to preclude what Chief Warshaw has just described? Just four
months ago, in March, we all approved a budget, which, I'll tell you, I didn't know it was a wink budget or
nod, wink and nod. I thought this was a real budget.
Mr. Parekh: I think the issues are more on a structural issue, which you pointed out. I think, overall, is each
department director needs to be responsible and held accountable on a yearly basis, a quarterly basis or even
on a six month basis before this City Commission on terms of the budget. Secondly, the department
director needs to pay his or her bills on timely basis. Buying a particular service and keeping the bills away
hidden from the Finance Department or from the Manager for two, three years is an unacceptable policy.
Commissioner Teele: OK. Well, look, Mr. Mayor, I apologize. It just seems to me that we keep going
back in the same circle. We keep saying, Mr. Manager, now, I'm going to approve this budget but I'm
counting on you to do this and this. It seems to me that we've got to establish some accountability here at
the Commission now going forward. We can't keep saying, Mr. Manager, I'm going to hold you responsible
for cutting the budget or Mr. Manager, I'm going to hold you responsible for getting the bills paid. We've
got to establish accountability with this budget but the problem is, we still have a sixteen million dollar
31 August 11, 1998
($16,000,000) deficit, Mr. Mayor. And to date, I guess we're talking about twenty thousand dollars
($20,000) and ten thousand dollars ($10,000) in public policy issues. Where is the money going to come
from? What is the Manager's... the Budget Director's recommendation based upon the good Commission
or the Mayor's Budget Advisory Committee's recommendation? Are you all recommending option one, two
or three?
Mr. Warshaw: I'll answer it but ... and I'll let Dipak give you the menu'd items. Basically, the
recommendation is to deal with the structural deficit from 1999 through 2003 with the caveat that, if the
Off -Street Parking monies are approved within the next few days, you have the option of Draft -A or
Draft-B and that those revenue enhancements come from a combination of the millage, the sanitation fee
and the fire fee. Understanding, at the same time, that I will work to reduce...
Commissioner Teele: Chief, you ... I mean, with all due respect, we need some recommendations now. We
know that they're three places to get the money. Now, what are you recommending that we consider.
Because I would like to recommend to the Mayor that we agree to give some direction, individually, after
we hear the Manager's recommendation and then we let the Mayor, the Manager and the Director and the
Attorney draft legislation for us to consider on Thursday or whatever date, Mr. Mayor, you think is
convenient. But we need to come to a consensus, I think, on a policy direction that we're moving in. Now,
are you recommending options one, option two, option three or a combination thereof? And this isn't ... I
mean, but, at some point, that's what we've got to vote on. So, telling us the fire fee, the garbage fee and
taxes doesn't help us beyond where we are now.
Mayor Carollo: The problem that I see, Commissioner ... and this is what I think the Manager is trying to
say. It's not going to amount to hill of beans if the Administration recommends to this body so much
money from garbage, so much money from fire fee and so much money from millage increase if the
Commission is going to be tearing it apart again and put in their input. That's why before the
Administration can come back with something like that for you, that's what this Commission would like to
see, this body has to indicate to the Administration what it is willing to do.
Vice Chairman Plummer: I just made my statement and I take exception, that there's a fourth area and I
continue to say that and I'll say it, there's three items: Cut, cut and cut. And we're not even talking about
that. You know, if you go back to the Five -Year Plan, any one of the three that I have in this book, we
talked about tremendous amounts of increase in revenues. You know what, diddly. We ain't got diddly.
We talked about in the these other Five -Year Plans, where we were going to cut, cut, cut. You know how
much we've cut? Diddly. Now, let me tell you something. Somewhere along the line the people of this
peep town are telling you, live within your budget and we're not doing it. Just that simple. So, I think there
is a fourth area.
Mayor Carollo: Yeah. But, Commission, let's lay things out on the table. I mean, it's fine to make a good
show of it up here and jump at the Administration, whether this one, a past one or not, but let's look at
things the way they have been going on. I came back. I found ... and granted these are small examples but,
nevertheless, I think it's very indicative of the way things were running. I find that I have a Mayor's office
that, at the rate it was going, it was going to be a hundred percent or more over budget. I find out that a
Commissioner's office was going to be approximately 50 percent over budget. I kept telling the Manager.
He says, you know, it wasn't up to him. I brought it up before this body one time. Deaf ears. Nobody
cared. And then we look at the departments. And, you know, it's fine to complain if they are over budget or
how they're spending their monies but then, when you look on how a Manager had to be running back and
forth to stick this guy in this position because this is where someone wanted him to be working at or he
could not get rid of dead weight because, otherwise, one member of the elected body would be upset. I
mean, we could go on and on and on with examples like this and, you know, I think we need to do as we
say, not ask the Administration to act and then we do different. We have to begin...
Vice Chairman Plummer: Mr. Mayor, I've made my point very...
Mayor Carollo: ...within this dais up here to follow the rules that we're asking the Administration to follow
and that means no interference whatsoever from any of us up here in the way this City is going to be run.
That means that we're going to truly follow what the Charter of this City says, that we let a professional
32 August 11, 1998
Manager run this City. And if we could do that, that I think we will start making great headways in
resolving the problems that we have. And, certainly, we will be able to then bring someone here before us
and demand then answers. But the way that things have been done... frankly, you know, I just see too much
glass around this dais to be expecting things if we're not willing to do them ourselves here.
Commissioner Regalado: Mr. Mayor, if I may. The opinion have been asked from members of the
Commission. I just would like to say that last week your Committee recommended to you that you call a
special meeting to deal with the millage. You called a special meeting. We were here. And, according to
historians, was the quickest meeting in the history of this Commission. In five minutes, we approved a raise
of four million seven hundred thousand dollars ($4,700,000). 1 don't think that that's talk. I think that we did
what it was recommended by your Committee and suggested by the Manager and by you. What I'm willing
to do is to ask the Manager to tell us what is it that we need. But before, I am ready to vote, if there is a
need for a motion, to tell the Manager you have to look into the new positions. What are we going to save?
And, you know, you said, Mr. Mayor, that we're discussing here ten dollars ($10) and fifteen dollars ($15)
and we're not. If I give you this line items, you will see that we can get more than ten thou ... more than ten
dollars ($10) or fifteen dollars ($15). And I just want the Manager ... I'm ready ... I voted for the millage
increase last time. I'm ready to do whatever it takes. But, first, Mr. Manager, I would ask you to come back
and tell us how much we can cut in terms of expenses. Because as ... maybe I'm wrong but the Oversight
Board has not said that we have to bring them revenues. They have to say either cutting expenses or
increasing revenues. So, I am ready to vote for whatever is necessary, when you at least tell me how much
can we save in the new position, how much can we save in the unclassified position, how much can we save
in Line 51, for instance, overtime events or Line 340 or Line 670? 1 can give you ten more lines item that, I
think, that I don't understand explanation. It's too vague. And I would ask you to come with some savings,
maybe not five million dollars ($5,000,000), but maybe one million dollar ($1,000,000.00). And if you can
do that, and I am sure that you can, I am ready to take the other issues and discuss it with ... if that is the
direction that you need, that is the direction that this member is giving you.
Commissioner Teele: Mr. Mayor?
Mayor Carollo: Commissioner Teele.
Commissioner Teele: Mr. Mayor, I realize that we all are very frustrated. I must tell you that this has been
really a very, very difficult process for me and the staff. I will start out by saying to my colleagues, I think
that it is critical that some middle management positions be, not only retained, but implemented. This City
is too thin, way too thin, in the area of middle management as it relates both to Budget, as it relates to
Finance, probably technology. I mean, I'm ... as I've...
Mayor Carollo: Excuse me, Commissioner. Commissioner Regalado, don't just go away yet. We're not
quite finished. Why don't you join us? I'd like to answer some of the things you said before you go away.
Commissioner Regalado: Can I go drink water, Mr. Mayor?
Mayor Carollo: Absolutely.
Commissioner Regalado: Thank you.
Mayor Carollo: You could even go do something else.
Vice Chairman Plummer: First gallon is free.
Commissioner Teele: But, Mr. Mayor, we have an honest difference of opinion. I mean, I have a high
regard for Commissioner Plummer. I have worked and served with him on various boards and
commissions for the last eight years. I listen very closely to what he says. I have a disagreement with some
of the things that he's proposing, but it's not personal at all. I want to work with J.L. and I know J.L. wants
to work with me. I think we have to really all roll up our sleeves and work together on this. I don't think,
Mr. Mayor ... and I have never seen in government where the professional staff does not give a professional
recommendation first. Now, the fact that the Commission may or may not accept that recommendation is
33 August 11, 1998
really, I think, within the discretion of the Commission.
Mayor Carollo: Absolutely.
Commissioner Teele: But those folks are all paid well -above my pay grade and every pay grade on this
Commission and we are entitled to get a written recommendation regarding this, the budget
recommendations. And I'm not trying to put anybody on the spot. I'm telling you, I'll support certain
aspects of budget increases. I hear very clearly Commissioner Sanchez and my colleague Commissioner
Regalado and others talking about the fourth option. I agree with them on the fourth option. I think, to a
great extent, both the Mayor's Advisory Commission and the Commission, itself, has been misled. It's my
understanding, based upon the July 31 st principles, that the recommend ... in the Sunshine, where the
meetings were held, that the recommendation that went to the Manager ... from the Manager to the
Committee was that there are only three options, fire fee, solid waste and taxes. And there is a fourth option
and the fourth option is to cut. But I'm with the Mayor on this issue. You layout the cuts, you make the
motion and I'll second every motion. That goes to anybody up here. But, at the end of the day ... you know,
it's sort of like my dear friend President Reagan who used to always say, when you get in a box and we're
going to get the rest, but the other eight billion or the other forty billion out of waste, fraud and abuse. It's
just not that much there. And so, what we've got to understand, this is a sixteen million dollar
($16,000,000) problem. As I think we've all agreed on, eleven million if...you know, I think Mr. Goode was
very articulate in how he built from eleven point six to sixteen. It's a sixteen million dollar ($16,000,000)
problem. We have not heard, yet, one thing ... and this is what I'm frustrated with, Mr. Mayor. We've not
heard one thing from the Manager and the management on the real problem of this budget and, at some
point ... you know, we keep talking about being intellectually honest and ... you know, unions, you all can pay
attention on this because I'm going to offend you. But, at some point, here we need to hear the whole truth
and the whole truth is this City has got a serious problem with Police, that's the problem, with this budget on
the Five -Year Plan. And the problem is, we've done too good a job, if there's such a thing, in getting grant
money. And the Oversight Board yesterday, as my understanding, the Joint Estimating Committee took us
to task. I mean, the meeting broke down. The meeting went on for how many hours, Dipak?
Mr. Warshaw: I'll answer that.
Mr. Parekh: Four hours.
Mr. Warshaw: I'm sorry, Commissioner. I beg to differ with you. I was at the Estimating Conference. The
issue dealt with the additional grant of a hundred and sixty-eight officers, not one of which has been hired.
The Commission hasn't even accepted that grant yet.
Commissioner Teele: But that's the problem, Chief. Are we going to put that grant in the Five -Year Plan or
not? See, that's the problem.
Mr. Warshaw: We're not going to for a very simple reason, and that is...
Commissioner Teele: Hold it, hold it.
Mr. Warshaw: ...that the monies have not even been accepted yet and...
Commissioner Teele: Chief.
Mr. Warshaw: The concern that the Oversight Committee had was, what kind of capital outlay would be
needed to be able to deal with the issue of cars and so on. And I explained to them, we might not hire that
first officer until some time in 1999 and I will do it in a managed way, so it would not incur additional
expenditures to the General Fund or the capital site.
Commissioner Teele: OK. With all due respect, Chief, I want to hear from the Budget Director because
this is how we keep getting into these problems, is that the Manager is telling us the management line.
Now, Mr. Director, you were at the Budget Estimating Conference. I finally got staff at a Budget
Estimating Conference. Is that money in the Five -Year Plan?
34 August 11, 1998
Mr. Parekh: No, sir.
Commissioner Teele: Are we going to hire those people?
Mr. Parekh: Depends upon this City Commission and the recommendation from the Manager at some
point. Yes.
Vice Chairman Plummer: You need to ask the question, at what level are we showing the Five -Year Plan of
the number of police officers? What level has that been put at?
Mr. Warshaw: One thousand and forty.
Vice Chairman Plummer: You see, there is the major problem when today, you have nine hundred and...
Mr. Parekh: Thirteen.
Vice Chairman Plummer: Nine thirteen to a thousand and forty and you're showing that in the Five -Year
Plan.
Mr. Warshaw: Commissioner...
Vice Chairman Plummer: Am I correct or wrong?
Mr. Warshaw: You're correct.
Vice Chairman Plummer: OK.
Mr. Warshaw: And that happened as a result of the Federal grant waiver.
Vice Chairman Plummer: That's where they're not telling you the full story.
Commissioner Teele: Let me read you a statement and I want you to just tell me if this is right or wrong.
The City received approval of a three-year twenty-four million dollar ($24,000,000) grant from the Federal
government to hire a 168 additional police officers?
Mr. Warshaw: That's correct.
Commissioner Teele: The City has not included the additional police officers in its revised budget
projections?
Mr. Warshaw: That's correct.
Commissioner Teele: The Estimating Conference believes the impact of these additional officers should be
reflected in the City's revised budget proposal?
Mr. Warshaw: That's half correct. And the half that's correct is their concern was that, if and when those
officers are hired ... and you should know that, we haven't even gotten the grant award yet. The Commission
hasn't even accepted the monies. If those officers are hired, their concern was, if we had to buy them
cars ... it was only about cars...
Commissioner Teele: But, Chief...
Mr. Warshaw: How would we be able to pay for that? And my answer was, none of them have been hired
yet and I won't hire them if there is going to be a capital impact to the budget. And it's ... it was a non issue
after that.
35 August 11, 1998
Commissioner Teele: But, Chief, this is the only point I'm making and I ... look, I don't want to be here in
October trying to do a new Five -Year Plan, OK? And what I'm trying to say to you and every other
department head that's listening, there's one budget year, OK, one budget process. That process, in my
judgment, should start with the Mayor giving a budget address, the Commission then taking a budget policy
discussion, the Manager proposing a budget and, around September, under the State Constitution, we should
hold a public hearing that begins five o'clock and approve a budget and that should be the end of it, except
for unique unforeseen circumstances. Now, if you all are telling us that we've got a twenty-four million
dollar ($24,000,000) grant that's hovering around out there while we vote on a Five -Year Plan now, but
once we vote on this Five -Year Plan, we're going to then have to decide on these police officers, I'm telling
you, I have a problem with that. Because that is where we started out. That's where we're trying to get
from. We've got to everybody to put everything, please, on the table and now is the time to do it. And
i£..and that's the whole point, Chief. If we've got a grant out here that's going to dramatically affect the
Five -Year Plan, my position is this ... and I don't want to give away money. I want you to hear what I'm
saying. But now is the time to put it on the table, not after we vote on this Five -Year Plan and come back
here in November and say, by the way, we got this grant in May and now we got to do a Five -Year Plan.
Because this is the problem, Chief.
Mr. Warshaw: Commissioner, I'm not trying to hide that. It was a well -publicized headline story in the
Miami Herald and no monies have even been accepted by the City.
Commissioner Teele: I understand that. But the problem is this, is it in the Five -Year Plan and if it's not in
the Five -Year Plan, do you expect to take it up in the next five years?
Mr. Warshaw: I'm going to answer you in two ways, and I know the Union President is here and I don't
want to negotiate the contract with him but I've been in ... I think I can say this fairly. I've been in
discussions with him about all kinds of options, including... because this is a distressed neighborhood
grant ... the possibility of deferring or delaying or even eliminating the purchase of cars and he hasn't agreed
to this. But the real issue that they had was on cars only. The issue has nothing to do with anything other
than cars. And what I told them yesterday was, I will not hire one of those additional officers until and if
we've made any kind of provisions for the issue of vehicles, if there's additional cost to the City.
Commissioner Teele: Mr. Manager, with all due respect, I want to just confirm... because I'm getting bad
advice from my staff, maybe. Is this strictly about cars or is this ... Mr. Director, now I'm talking to you.
Mr. Parekh: No, sir.
Commissioner Teele: Is this strictly about cars or is this about the Five -Year Plan and the out year
implications? Because, see, this is the point. Just like Commissioners are saying, I'll approve this fee today
but I'm not going to vote for it in three years, OK, and that's what ... where we are. We cannot let the
management say, we're going to approve this grant or we're going to consider this grant but we're going to
deal with it in three years. The Five -Year Plan has to be a very real document. Now, is this strictly about
cars or is this about the out year five-year implication, Mr. Director.
Mr. Parekh: No, sir. That, as well as operating expenses for fuel, for maintenance of those cars, and people
at GSA, or contractual services, 270, all those different line items we're talking about, it's all about that. It
has an impact on a line item called Revision Initiatives Under Police Grant Attrition because once those
positions get out of the door in year 2002/3 they have to be adopted by the general Fund monies. And now,
you may not have enough attrition position to absorb a hundred and sixty-eight in one year, which
obviously has a monetary impact in 2002, 2003.
Vice Chairman Plummer: Where's that money coming from? Because you're looking at possibly six to
seven million dollars ($7,000,000).
Mr. Parekh: Absolutely.
Mr. Warshaw: It has to do with the managed hiring of these positions. Obviously, if you were to hire a
hundred and sixty-eight in one year and your natural attrition didn't take you down to that number or, in any
36 August 11, 1998
given year, you would be over your budget. And that's one of the careful things you have to do when you
administer a grant like this, is to assure you never go above your base line number.
Commissioner Teele: Mr. Mayor, Mr. Mayor. This is not my issue, OK? I want to be very clear.
Mayor Carollo: I understand.
Commissioner Teele: This is the Oversight Board's issue.
Mayor Carollo: I understand what you're saying, Commissioner. There's a lot of validity to what you said
and there needs to be some answers to that. One of them, I'll give you straight and it's simply a fact that
these grants do not kick in until you hire each individual officer. In other words, you could hire ten.
Madam, if you want to laugh or talk any further, I would advise that you step outside, do it because we're
going to hold this meeting with the decorum that this body and everybody here deserves. Thank you. The
way the grant works is, it's not that it kicks off the minute you hire the first police officer. You could hire
ten and the grant kicks off for those ten. It kicks off as you hire the individual officer. You do not lose the
grant. Therefore, you could structure that in a fairly simple way so that you could be assured that it's not
going to hit you where one sixty-eight, all of a sudden, at the end you're faced that you have to replace a
hundred and sixty-eight positions. But, nevertheless, the questions that you're asking ... that they were asked
yesterday, so, I mean, they're valid, they're valid.
Commissioner Teele: They're not my issues. I want you to understand and I want the public to understand.
Mayor Carollo: And I understand that because I'm aware of that, I'm aware of that. And it's very valid
issue. It was an issue that I wanted to have resolved once we got by some of the other things that we needed
to and have given the Budget Director enough time in the next 48 hours to have worked additional numbers
on but the ... you know, where I see that we're at, Art...and, again, that issue is one that we have to deal with
because, if not, it's going to be brought back to us and they're going to deal with it for us. What I see is, that
we've been here now for slightly over two hours. Going on two hours and fifteen minutes. I honestly can't
say that we have moved forward in any way from when we first came here and what we need to do is to
come back and zero in exactly on those issues that we can accomplish between today and, truly, it's going to
be Friday, not Monday. Between today and Friday. And there are implications why I'm saying Friday, that
I think you all are aware. Now...
Vice Chairman Plummer: Can I ... Mr. Mayor?
Mayor Carollo: Not yet, Commissioner.
Vice Chairman Plummer: OK. Let me know when.
Mayor Carollo: Having said that, if I can direct... suggest to this body that we try to express to the
Administration some of the areas of how each of you might feel that would be acceptable on whether you
want more of one fee or another. You know, which is the tonic that you want to give out. Otherwise, with
the short period of time that we have, the administration will come back when we meet again and they
might give something to you that is not what each of you, individually, wanted to do and then, you know,
we might be out of time. So, this is what I'm saying, Art. I mean in a perfect world where we would have
plenty of time, we could be doing things in a much different way. But, you know, we really have between
today and Friday to resolve this. And, you know, unless it is the will of this body just to tell them come
back and give us what you want us to approve and this is what we're going to discuss after, is one thing.
But I think that each member here has an obligation to give some indication where they want to put more
dollars that they're going to ask from the residents of Miami, whether in garbage fee, fire fee, and in which
way.
Commissioner Teele: Mr. Mayor, it may be semantics, but three Commissioners, I've heard, give direct
instructions. Commissioner Plummer, Commissioner Sanchez and Commissioner Regalado have said cut.
Present me a budget that is cut. Now, I'm going to tell you something and I went over this on July 31 st.
This is fraught with a trick. Because at the end of the day, you won't have three Commissioners to agree on
37 August 11, 1998
anything. I mean, I witnessed this in a different context on the County, where you get locked in. So, the
one thing I'm going to say, if this budget is going to be based on cuts, we need to have a budget that is
presented that we can all agree on and get three votes to agree on it, at least, and then remove things by cut
because, otherwise, what you're going to wind up with at the end of the day is going to be a piecemeal
budget that nobody's going to like and there won't be three votes to support. So, as I've said repeatedly and
I'll say it again, as it relates to what Commissioner Plummer wants to cut, as it relates to what
Commissioner Sanchez wants to cut, as it relates to what Commissioner Regalado, what he wants to cut, I
will second any motion for purposes of discussion and we can discuss those items. And if you want to do
that now, it may be good to do it, but they need to know, the Manager needs to know what it is we want to
cut. It's fine to say cut. And I'm not playing games, gentlemen. But, at some point, you've got to cut
something and I'll go so far as to say that the only thing that we've cut since I've been here is the
Commission budget, which I think is the most ridiculous thing yet. Because the one thing that you've heard
all morning is, there is no check and balance and I will say this again, there has got to be someone to stand
in the gap here and approve these budgets, legislatively, and say, these budgets are legislatively defensible
and that there is enough money in it to pay the salaries and to do that. Now, the problem is going to be
this...and we went through this on the July 31st principles. The Manager and the Director, with all due
respect to Chief Warshaw and if it were Dave Stockman, it will be the same thing, they're going to hand up
cuts that are not going to be acceptable. So, at the end of the day, every Commissioner who's saying cut is
going to have an obligation of saying where you're going to cut. Now, Mr. Mayor, I don't know any other
way to do it but...
Mayor Carollo: I agree with that process. You've come to support the position that I've taken. You're also
doing or asking rather for the same thing that I'm asking on the other side of the coin. I appreciate that
you're supporting my position then, Art, and that's exactly what I am saying. We need to...
Commissioner Teele: Mayor, I've always supported that position and if that's your position, I've always
supported it. The only caveat is, I think the Manager ... we paid the Manager and his staff ...I'm talking about
the Budget Director and their ... they have a very competent Budget staff and a Finance staff. We pay them
to give us their professional recommendation and I don't think the Commission should be asked to cut
anything until we have their recommendation on the table. Now, having said that, I don't think they're
going to give us any ... I don't think they're going to give anybody who wants a cut anything acceptable,
especially as it relates to money. And let's say this, the opening cut number is a million dollars
($1,000,000). Anything below a million dollars ($1,000,000), let's save it to as rounding errors. So where
do we start out?
Vice Chairman Plummer: Mr. Teele, I do not indicate that we're going to be able to make any substantial
cuts by Monday. And that's...
Commissioner Teele: By what?
Vice Chairman Plummer: By Monday.
Commissioner Teele: Well, we've got to have a budget.
Vice Chairman Plummer: So, what I'm saying to you is, is that substantial cuts, in my estimation, are going
to have to be made over the next twelve months and that's where I'm asking that every month this
Commission dictate that the Manager must present to us where he's going to making the cuts to equate to
the amount. Now, let's go to the belly button, OK? I have one first question before the belly button. Is the
nine hundred...I'm sorry, the thousand and forty in the Five -Year Plan for Police?
Mr. Warshaw: Yes, sir.
Vice Chairman Plummer: OK. So, that's an increase whether we like it or not ... and forget about
attrition ... of a hundred and twenty-seven.
Mr. Warshaw: Actually, sir, it's a decrease from a thousand sixty-five.
38 August 11, 1998
Vice Chairman Plummer: OK. But no. The level in the budget now is nine thirteen.
Mr. Parekh: Nine...
Mr. Warshaw: That's not the level in the budget.
Mr. Parekh: That's a Federal base.
Mr. Warshaw: That is the three-year Federal grant waiver, which means that officers numbers 914 through
1,040 are being paid for with Federal dollars. That's only...
Vice Chairman Plummer: Or in the third year, we're going to have to come up with the additional money.
All right.
Mr. Warshaw: Goes back to the original staffing.
Vice Chairman Plummer: Let's go to the belly button. Can I go to the belly button? Mr. Dipak, we know
the four million is from the mileage.
Mr. Parekh: Yes, sir.
Vice Chairman Plummer: We know the other two sources are Police ... I'm sorry, Fire and Garbage.
Mr. Parekh: Garbage.
Vice Chairman Plummer: How much from each is, in your opinion, needed to reach the sixteen?
Mr. Parekh: OK.
Vice Chairman Plummer: I doubt that it's six and six, so what it is?
Mr. Warshaw: Before he answers that, I...
Vice Chairman Plummer: I didn't ask you. I want to know what is the reoccurring number that has to be
inserted in this belly button? Is it five and seven? Is it four and eight?
Mr. Parekh: That's precisely the direction which the Administration needs from the City Commission.
Vice Chairman Plummer: You're not prepared here today to give me that number?
Mr. Parekh: We have all the matrixes. We can have it entirely...
Vice Chairman Plummer: Then give me your recommendation today.
Mr. Parekh: My recommendation...
Vice Chairman Plummer: Is it six and six? What is it?
Mr. Parekh: My recommendation is Option Three of the Budget Advisory Committee.
Vice Chairman Plummer: That's fine. Now, tell me what is Option Three?
Mr. Parekh: Option Three basically raises...
Vice Chairman Plummer: How much from Fire and how much from Garbage?
Mr. Parekh: Solid Waste fee is doubled.
39 August 11, 1998
Vice Chairman Plummer: Doubled. And how much money is that of the twelve million remaining
balance?
Mr. Parekh: Twelve million? That...
Vice Chairman Plummer: You're saying one source only.
Mr. Parekh: Let me define what I'm saying.
Vice Chairman Plummer: No, no. You answer my question, then you can editorialize all you want.
Mr. Parekh: OK.
Vice Chairman Plummer: How much for Fire and how much for Garbage?
Mr. Parekh: Under Option Three, twelve million from Solid Waste; four point two million dollars
($4,200,000) from Fire.
Vice Chairman Plummer: OK. And then you're not including the up in the millage?
Mr. Parekh: Yes. That's part of Option Three.
Vice Chairman Plummer: So, you're talking twelve, four and four. You're talking twenty million total?
Mr. Parekh: With an exclusion for capital needs for the Solid Waste Department in the amount of one point
six six million.
Vice Chairman Plummer: OK. You're talking... so, you're talking...
Mr. Parekh: Nineteen point four.
Vice Chairman Plummer: Four, twelve and four?
Mr. Parekh: Nineteen point four.
Vice Chairman Plummer: All right. Now, tell me ... because you got to ... you know, people ain't going to
like it. How much is the average home owner going to have to pay in an additional garbage tax?
Mr. Parekh: Additional garbage is eighty ... one hundred and eighty-five dollars ($185.00).
Vice Chairman Plummer: Additional?
Mr. Parekh: Additional.
Vice Chairman Plummer: So, in other words, instead of 185, they're going to be paying how much?
Mr. Parekh: One eighty-eight, plus one eighty-five.
Commissioner Gort: Three seventy-three.
Mr. Parekh: Three seventy-three.
Vice Chairman Plummer: OK. So, that...if we vote for what you recommend, it's going to be three hundred
and seventy-three dollars ($373.00) per household?
Mr. Parekh: Yes, sir.
40 August 11, 1998
Vice Chairman Plummer: Now, in the fire fee of the belly button, what is the four million dollars
($4,000,000) there going to cost because that includes everybody? That includes Fire and everything.
Mr. Parekh: For the single family home owner, twenty-four dollars ($24.00) additional.
Vice Chairman Plummer: OK. And for ... it could be up into the thousands for the commercial?
Mr. Parekh: Yes, sir.
Vice Chairman Plummer: Now, that's fine. Let me tell you where I'm again ... where I'm at. I think that it's
unloaded, unfairly. I think that that load should be put more on the commercial aspect of the fire fee, all
right? And that's where I think my belly button is coming from.
Mr. Parekh: OK.
Vice Chairman Plummer: And I think, because of the facts...as I said before, a home owner cannot charge it
off as an expense. In business, you have normal expenses that you can charge off that are tax deductible
and that is an expense. So ... that they've got to equate out, OK?
Unidentified Speaker: _
Vice Chairman Plummer: And I understand that you're a multi apartment house owner and that's got to be
answered ... I think that's a truth thing that to be. So, what I'm looking at, I would like to see the garbage fee
come down. I think it can come down to ... in the neighborhood of eight, all right. Eight and four and go
eight on the fire fee, OK?
Mr. Parekh: OK, sir.
Vice Chairman Plummer: But more so heavily on the commercial aspect of the fire fee. That will be
acceptable to me as this Commissioner's vote, with the caveat again, that you've got to have the Manager
under a mandate of the coming year for the purposes of equating either in revenues or in cuts to twenty
million dollars ($20,000,000). That's where I'm at, Mr. Mayor. Goodbye. I'll see you around. I'm going
for water or something else.
Commissioner Teele: J.L., before you leave, could I ask one question, Mr. Mayor. I'm sorry, Commission
Gort. I apologize
Vice Chairman Plummer: I'm not leaving, sir.
Commissioner Gort: W. Mayor, I think it's something that's very important, that we all understand and the
public understand, if we do not take a decision, somebody else is going to take it for us.
Vice Chairman Plummer: That's right.
Commissioner Gort: And that somebody else does not live in this City, might not even live in the County
and they are going to impose what they believe is the best for their results, so we have to take a decision.
And our decision is going to be what we believe is best for the community. I agree with J.L. I think the ... we
have to make sure that we distribute this normally through everyone, equally but, at the same time, I'm
asking and you ask, in particular, I think in particular... and this is a recommendation I got from one of my
neighborhood association, they've got together. We need ... and I've been asking this and it's in the records
and you can go in the records for the last year What economic impact we will have if we have trash
collection once a month instead of every week? I think we can reduce cost. At the same time, we can
eliminate some of the illegal dumping that is taking place. One of the reasons we got so much illegal
dumping is because we have a hell of a great service. So, I need to see those numbers. Whatever we can
reduce, Mr. Mayor, then you guys play with it. But I agree with J.L., we can't put all the burden on the
residents. We got to put our cost to everyone.
41 August 11, 1998
Mayor Carollo: And ... J.L.?
Vice Chairman Plummer: Sir, I'm here.
Mayor Carollo: OK. Good. One area that...
Vice Chairman Plummer: Mr. John Q. Citizen is now going to speak.
Mayor Carollo: One area that we have to deal with today in giving the Budget Director, the Manager
direction on is OffStreet Parking. As it stands right now, we're not going to be able to put the two million
plus dollars in this Five -Year Plan and the Oversight Board's not going to approve it based upon what ... it is
my understanding. The City Attorney could clarify it ... that Off -Street Parking stated to us last night. The
Oversight Board wanted a guarantee of those funds. The Off -Street Parking Authority says that they
cannot, for ex -amount of reasons, guarantee the funds that they sent us a letter on, that is what they felt
would be available to us. At the same time, at the top of the ninth or in the last minute of the fourth quarter,
as we've been playing football here, the Off -Street Parking Authority was gracious enough to say that they
would now only give us these dollars if we would give them a five-year contract that we would not do away
with the board and take them over. That's the last of what I've heard. I don't know if there's been a change
since then or not. Now, gentlemen, the problem with the Off -Street Parking Authority is that they really
don't think anyone up here is going to pull the trigger and the trigger is to vote upon an ordinance to take
them over so that this City, not only would get those two million dollars ($2,000,000) and change but can
end up getting, in my estimation, some four million dollars ($4,000,000) or so real soon instead of the two
million and change. So, it is up to this body if you want to take up an ordinance that will take over the
Off -Street Parking Authority and then you can put an RFQ and decide if you want to give it to the private
sector to handle it, with guarantees, or do otherwise with it or, if you want to add on an additional two point
plus million dollars in fees to the residents of Miami.
Vice Chairman Plummer: Give the gavel back. Mr. Regalado.
Commissioner Regalado: Yes. I would like to ask the Manager... the Mayor just have said that even we
don't have the time to have this two million or whatever Off -Street Parking is going to give this City on this
budget, is that correct?
Mr. Warshaw: We're still in negotiations but, as of right now, yes, that's correct. We cannot say that this
two point two in the out years is a commitment that's acceptable.
Commissioner Regalado: So why do we have to deal with that today?
Mr. Warshaw: Well, that's why I gave you the Option -A, Option-B. Now, we're still negotiating with
Off -Street Parking on a couple of issues, including the guarantee of the revenue stream and that's one of the
issues that's really at the forefront. Because the...again, the Oversight Board wants a commitment, in
writing, guaranteeing that those revenues will flow to the City in these numbers and we don't have that yet.
Commissioner Regalado: Well ... but can we or can we not, by Monday, use those two million dollars
($2,000,000) in the plan?
Mr. Vilarello: Commissioner, the answer to that question is, it's possible. We broke negotiations last night
and Mr. Cook is taking to his board Friday morning consideration of some of the issues that we outlined for
him, including establishing some level of guarantee or expectation of the revenues that the City will receive
on an annual basis, including the issue of whether or not this is a, for lack of a better word, piece in their
time during the five years. That provision was made clear that that's not an acceptable provision in the side
agreement with the City. There were some additional issues with the Budget Director with regard to how
the City receives those excess revenues from the Department of Off -Street Parking. We've made that clear
to Mr. Clark and he's working on that issue, as well as defining operating expenses so that we can put some
level of guarantee in the excess revenues to the City. So, the answer is, maybe they are going to meet on
Friday and, hopefully, we can have a resolution to present to the City Commission and include that number
in the budget.
42 August 11, 1998
Commissioner Regalado: If I may, Mr. Mayor. I don't know whether you all want to hear from Mr. Cook
or continue on this topic. But what my question was to the Manager, so, do you think that we could
vote... whenever the Mayor calls a meeting ... on Draft -A or Draft-B because there's a difference of two
million dollars ($2,000,000), right?
Mayor Carollo: More than two million dollars ($2,000,000).
Commissioner Regalado: More than two million dollars ($2,000,000).
Mayor Carollo: For next fiscal year.
Mr. Warshaw: Commissioner, if you were going to vote right now, I would have to advise you to vote on
Draft -A without Off -Street Parking because, as of today, right now, we don't have those revenues.
Commissioner Regalado: OK. The other thing, Mr. Manager, I sent you a memo about the possibility of
using some of the fire fee money that we have in place now for capital equipment for the General Fund.
The reason is that this.. an emergency and if we can use maybe half a million dollars ($500,000) out of
those yearly funds, we could save the tax payers of Miami half a million dollars ($500,000). I know that the
Fire Chief needs equipment. I know that the Union wants. But is it possible... don't look at me like... But is
it possible to use part of those monies for the General Fund purposes?
Vice Chairman Plummer: Excuse me. Don't make me out a liar because on behalf of this Commission,
when I went out to the people and I spoke before all of these groups, it was absolutely assured that that
money would go only for equipment and not operating and not in the General Fund. So, don't... please, Mr.
Regalado, you go back out and tell the people that I didn't lie, that it's going to be changed because that's the
only way I found that it was acceptable, that people did not go to the wall and say, no way. They were
acceptable. I showed them the new equipment. I showed them that we ordered the ten rescue trucks. And I
tell you something, travel with me to the different fire stations and you will see that the twenty million
dollars ($20,000,000) that it raises over the five years is absolutely necessary.
Commissioner Regalado: I understand that, J.L. And I saw the fire truck when we went to. And the people
were really happy. What I'm saying is that, this is an emergency and everybody here understands that we
have to take ... the people of Miami are going to have to take the brunt of this crisis and I'm just saying, can
we use some of the money, not all the money, some of the money in the General Fund? That's a question
that I ask the Manager.
Mayor Carollo: The question that the Manager cannot answer for you because the final say is going to be
on the Oversight Board is that, it would be extremely, extremely, extremely doubtful. Because this is part
of what they've requested that has been committed and this is what the Fire Chief is going to tell you, that
it's the minimum that he needs to buy new equipment for the City of Miami.
Vice Chairman Plummer: Also, Mr. Mayor, it's for the purpose of upgrading the fire stations themselves.
Mayor Carollo: Of course, of course. But regardless of what this Commission would feel, even if it doesn't
agree with the Fire Chief, the Oversight Board is going to be in agreement with him. Chief?
Mr. Carlos Gimenez: Yes, sir. I couldn't have said it any better. I've stated before that, basically, we have
been in arrears, at least since I've taken over as the Fire Chief. We really haven't had any money for capital
and all the capital equipment is deteriorating. It's getting to the point where it's become a safety hazard. If
we don't continue with what we've started, it could get to the point where we're not going to have the trucks
out there to be able to respond to the citizens. The fire stations are in horrible condition. They need the
money to rejuvenate them and the...
Vice Chairman Plummer: And, in effect, you're not saving money and let me tell you why. We are rated
by ISO and if ISO comes in here and drops our rating out of a first class department, your insurance rates
are going to go up. So, you're not saving any money by taking that money away from the fire equipment or
43 August 11, 1998
the stations because if you do, you're going to lose your rating of a first class department and the minute you
do that, your insurance is going to go up on fire on your home. So, it's not an easy issue.
Commissioner Teele: Mr. Mayor. I don't disagree with anything the Chief just said but I hope
Commissioner Sanchez and everybody's listening because every department head is going to say exactly
what this Chief is saying and that is, ain't a dollar can be saved and if you try to save it, you're going to wind
up losing life, property. I mean, I went through this with the Coast Guard. I've gone through this a hundred
times in the Department of Transportation budgeting process. And I don't blame you, Chief, but that's the
problem with us saying, we're going to save money or we're going to cut. The Option Four problem is that
you're not going to get one department head to come up here and say take five hundred thousand or take a
million five. And that's the why ... you know, and again, I ... Mr. Mayor, if I'm agreeing with you, I mean to
agree with you. That's why the option is really not going to be the cut. Now, again, I'm willing to second
anybody's motion on the cut for the purpose of discussion but we've got a sixteen million dollar
($16,000,000) problem and you're not going to get any of it out of the Fire Department in terms of the fire
fee and changing capital dollars to operating dollars. I've had this discussion privately with you, Chief.
Mr. Gimenez: Yes, sir.
Commissioner Teele: This past week. I begged you for a few dollars. You told me, I'll have to give you
my professional opinion and that is, I would oppose it and I respect you for saying that, OK?
Mr. Gimenez: Yes, sir.
Commissioner Teele: And I hope every other department head will come and give their honest opinion
without regard to who feels what but that's the problem. I've tried to look for the cuts and ain't nobody
offering up the cuts.
Mayor Carollo: Commissioner Gort.
Vice Chairman Plummer: Well, I don't agree.
Commissioner Gort: Excuse me, J.L. Can I have a chance?
Vice Chairman Plummer: Go, go.
Commissioner Gort: You know, I've been patiently waiting, being...
Vice Chairman Plummer: I don't agree with you.
Commissioner Gort: Mr. Manager, what I'd like for you to come back and the Legal Department is, my
understanding is, we can have an ordinance where we can take over the Off -Street Parking, which
ordinance, my understanding is ... and I'd like to ... that we can get four million dollars ($4,000,000). I'd like
to have that confirmed. And if we do have an ordinance, what was the process? How long it would take?
And if we're challenged in court, if we would have any problem with that? So, in your negotiation in us
making a decision, if we have an ordinance taking over the Off -Street Parking or make an agreement with
them, we get the two million some, I'd like to have all the options and all the items that would go with it.
Mr. Warshaw: Yes, sir.
Commissioner Teele: Mr. Mayor, I think the observation you're making is one that I agree with you, in
principle, in this regard. I believe that the Commission should have the full range of options. Taking over
the Off -Street Parking clearly should be an option contracting it out, if you will. I shouldn't use the word
contracting it out, but having outside management is another option that could get you there. Personally, I
would not favor... personally, I would not favor the City taking over the management and the operation of
Off -Street Parking because of what I see in too many other departments and I don't mean to point fingers at
Solid Waste but, you know, we've got a department that functions very, very well in Off -Street Parking. Its
maintenance and operating, according to the bond ratings that I've read, is among the best in the country but
44 August 11, 1998
I'm concerned, Mr. Mayor, that Off -Street Parking has not, again, been respectful of the Office of the Mayor
and the Commission in terms of coming to a consensus on this. Now, Mr. Mayor, in 1998, last year, we
passed this green book. Nobody's looking at it. This book says, essentially, what you just said.
Mayor Carollo: Absolutely.
Commissioner Teele: And that is, that as a part of our Strategic Plan, the City would undertake a review of
Off -Street Parking and the Knight Center, OK. And we would move with the ... I think it's entitled ... Dipak,
where it is? It's called Strategic Reserve Plan.
Mr. Parekh: It's in the financial section.
Commissioner Teele: And, basically, it outlines this in detail. The problem, Mr. Mayor, is that one year
has gone by and we have done nothing. Now...
Vice Chairman Plummer: Diddly, diddly.
Mayor Carollo: Well, but...
Commissioner Teele: Nothing.
Mayor Carollo: But...
Commissioner Teele: And it's costing ... but see, Mr. Mayor, this is what's wrong here. The Commission is
being blamed by everybody for everything, but the Commission authorized the Manager and the
Department to move forward. Now, Dipak, let me just ask you this.
Mayor Carollo: Can I...
Commissioner Teele: Yeah.
Mayor Carollo: ...briefly interrupt you for a minute, Art? And I apologize that I'm interrupting. You're
right, that's in the original Five -Year Plan because that's one of the first things that I requested, along with
the Knight Center, to be included. In fact, we have it in the Five -Year Plan, beyond what you have there.
Because we had it in the Five -Year Plan for the out years, both the Knight Center and the Off -Street
Parking. And the numbers that we placed on it were very conservative, two million dollars ($2,000,000).
Now, what happened was that came November, you know, things changed, as you know. For several
months things were chaotic, so that I could be polite. Then, when I came back, I kept asking and asking the
Manager that was here and he kept putting it aside, putting it aside and putting it aside, until we finally have
reached this situation and then even after, under the gun, the Off -Street Parking Authority in a letter offered
us the dollars that we had placed here in this Five -Year Plan, the revised version. Once they saw or thought
that they had us behind the eight ball, then last night they come to the City Attorney with a contract that
says, well, we'll give it to you but you've got to sign this and give us a contract that for five years there's not
going to be any kind of move to take us over. Well, you know...
Commissioner Teele: But, Mr. Mayor, you can't blame them. I mean, survival is the first law of nature.
Mayor Carollo: Yes, I can. Because you know why? Let me tell you, I could blame them. Because if I
were to use that same strategy of survival, this City would not have been out of the deficit, the original
seventy million dollars ($70,000,000) deficit we had. Because if it hadn't been for the nineteen million
dollars ($19,000,000) that the Sports Authority had, that only came to this City because of one individual
that led the fight and thought against all kinds of people ... and for those that wonder, you know, if I fight and
I shouldn't fight, well, that's why I fight. Because I fight for the people of this community. I don't go and
demagogue. I fight for the right reasons. If it hadn't been for those nineteen million dollars
(S 19,000,000.00), that I could have sat on it. I was the Chairman of the Sports Authority. I could have had
me a staff of fifteen or twenty. I could have done what no other department in this city could have done,
because I had all that money. I pushed so that every single penny of it would come to the City of Miami
and that's the difference. And this is why it upsets me even more to see something like this happen.
45 August 11, 1998
Commissioner Teele: Mr. Mayor, I was only ... I don't ... I was only making light Quite frankly, I think our
issue and Off -Street Parking's issues are totally different and I think we should be fighting just as hard right
now as Off -Street Parking is fighting us to get a better deal. But I want to say this for the purpose of the
record and, particularly, for the Manager. Because there's an important point here. On page 63 of the
Strategic Reserve, which was written, quite frankly, in the previous year, so this is coming forward two
years now this has been on the table. The reserves for strategic investment is the balance of funds not
needed for capital purchases from the sell of the FEC tract and the Municipal Justice Center. This reserve is
estimated at twenty-five point nine million and will be used for one-time expenditures of reoccurring
reduction. Below is a list of the uses, along with the anticipated returns to the City. The Administration,
not the Commission... and see, Mr. Mayor, the Commission is unfairly being blamed for everything.
Because, right now, we don't have but one choice. That's to raise revenue. I mean, it's going to sink in
eventually that we've got to raise revenue. We can cut but, at the end of the day, we've got to raise revenue.
But it's not the ... the reason we have to do this is because there's six million dollars ($6,000,000) on the table
for the last two years that the Administration has failed to give us the option on. Two million dollars
($2,000,000) or so from Off -Street Parking. Four million dollars ($4,000,000) from the Knight Center.
That's six million dollars ($6,000,000) of reoccurring money, theoretically, that we should be in a position
to move on. And this document...
Mayor Carollo: I agree with you on that but for one year maybe. Even though the document, as I stated,
did not anticipate that we would be able to make those changes until the year 2000 for both of them.
Commissioner Teele: But, Mr. Mayor, what it says here is this, that defeasance of the Off -Street Parking
System debt ... and it talks about two million dollars ($2,000,000) of reoccurring. It says that there is a
fifteen million dollars ($15,000,000) of funds to defease the bonds, etcetera, and the other is the sell of the
Knight Center. Those two items represent approximately six million dollars ($6,000,000). Now, Mr.
Mayor, the question is, we don't have time between now and Monday...
Mayor Carollo: It's impossible.
Commissioner Teele: ...to put this into the Five -Year Plan for the purpose of meeting our shortfall. Is that a
fair statement?
Mayor Carollo: Not only is that a fair statement but, because of statements that have been made and actions
that have been taken, that we don't need to get into it again, they only wanted to see hard facts. They want
to see action, not words and promises. So...in fact, they made us take those two out of the budget from the
year 2000 out.
Commissioner Teele: Well, what action do you, would you like for the Commission to take?
Mayor Carollo: Commissioner, what I would recommend to this Commission that ... is to be clear with the
Off -Street Parking Authority, that unless they can guarantee us these dollars he way the Oversight Board
has requested, without wanting from us a five-year contract that we would not take them over, that they
know ... and Mr. Cook can go into that meeting on Friday morning knowing that we will pull the trigger and
we will immediately come with an emergency ordinance taking them over. Now...
Commissioner Teele: But what does that do for us on our Five -Year Plan?
Mayor Carollo: Right now, Commissioner, it puts us in the same situation what we're in. What it will do is,
is that they might realize that we're serious and maybe they'll do the right thing, so we could include that
money back in here. Now, if they don't, then I'll tell you the position we're in. No different than now, with
the exception that in the next two to three months, we will be able to do an RFQ or RFP, whichever way we
want to go at it, where I guarantee you that we will get a professional firm out there, out of the many that
will come and bid in this process, that will guarantee us at least three million dollars ($3,000,000), if not
more, in taking it over and managing it professionally for us, so...
Commissioner Teele: But, Mayor, is there any way we can add those numbers to the Five -Year Plan this
46 August 11, 1998
year?
Mayor Carollo: The only way that, at this point and time, that we could add those numbers is one, in the
way that I described it, if they come back and give us those guarantees and, or ... I don't know if the City
Attorney can guide me on this. I don't know. There might be another way. It's not the way that I would
like to go at it because it would always give the wrong perception. But we could contact five, six different
firms ... there might be a lot more than that...that are interested in this contract and I don't know if, in the next
72 hours, it could be legal for us to say that we want a commitment of a minimum of three million dollars
($3,000,000) and to see how many of those firms, if any, would be willing that quickly to give us that
commitment, without having all the numbers that they would normally require and be able to get. That's a
legal question. It's very long, long shot but that's the only other possible way that I could it happening.
Commissioner Gort: Mr. Mayor?
Mayor Carollo: The Oversight Board can have something in hand as the commitment and guarantee
already.
Commissioner Gort: Mr. Mayor, that's the request that I had of the staff and if they can come back here and
they can ... we can get a commitment that we can get more revenue for the City of Miami, I'm all in favor of
it. Because I'm going to do what's best for the City and I think that's the message that Mr. Cook and his
board's got to get and this is the message I've been sending to them. I would like to keep the management
that is there. I think they're running everything well, but I'd also like to see the benefit towards the City of
Miami. And I want that to be understood.
Commissioner Teele: Mr. Mayor?
Vice Chairman Plummer: Can we...
Commissioner Teele: Consistent with Commissioner Plummer's statement, I want to be very clear,
Dipak... thank you, Mr. Cook. Unless somebody else ... let me understand what you and Commissioner
Plummer have in agreement...agreed on. In that dialogue, he said the fire fee of what and the garbage fee of
what?
Vice Chairman Plummer: Well, my dialogue, if that's what it was. I wish it was in an agreement because
that would make it simple. It was understood that the garbage fee would be doubled to three hundred...
whatever it is. And for the opinion on television that's watching, it's exactly what it cost us to perform, less
than the County. The other area was in the fire fee. That in the fire fee, it was my opinion...
Commissioner Teele: J.L., would you stop right there?
Vice Chairman Plummer: Oh, yes, sir. Sure.
Commissioner Teele: I mean, this is sort of like, I guess, making sausage. It doesn't look too pretty. But,
you know...
Vice Chairman Plummer: If you know what goes in it, you'll never eat it.
Commissioner Teele: But I will support that principle. I will support that in principle. I've circulated a
memo ... on that one issue. I've circulated a memo that discusses specifically, among other things, the
garbage fee and it shows where the City is, it shows what it costs in other cities. Particularly, it shows that
in cities like Hialeah, Opa Locka. It's right at three hundred dollars ($300) and there's an attachment that
shows exactly what each city is charging, three twenty-one for Opa Locka. Hialeah three twenty-four.
Metro -Dade County three forty-nine.
Vice Chairman Plummer: Coral Gables, I think, is four ninety-five.
Commissioner Teele: Coral Gables is four ninety-five. The question... Commissioner Regalado,
47 August 11, 1998
Commissioner Sanchez, Commissioner Gort, Mr. Mayor, the question is, will three of us agree on this as a
matter of principle, not that we can put a budget together here now. But I think the staff has got to ... the
Mayor is right, we can't do this on Monday and the staff needs to hear at least from three Commissioners on
the budget ... on the garbage fee. On all of this but since that's the one issue on the table, we'll take up the fire
fee next. Where are we on it? Now, this is my caveat, Mr. Manager. I will not support a garbage fee unless
and until, between now and Friday, there is a task force put together to go out here and get the money from
the commercial people that are not paying the garbage. Now, I'm prepared to advance an emergency
ordinance today on the garbage fee and to clarify, based upon the discussions with the Solid Waste staff
through the City Attorney's Office, I have not met with anybody but I understand the City Attorney has met,
pursuant to my request, that we basically tighten this City up as it relates to the commercial. I don't think
it's fair, Mr. Mayor, to ask the home owners to pay three hundred dollars ($300), three hundred and fifty
dollars ($350) and let the commercial people continue to slide. We have got all kinds of reports from NET
offices of illegal companies that are operating in the City and what we need, Mr. Manager, between now
and Friday, is not only a task force out there working but a budget solution that basically accompany's the
household as it relates to the commercial. In other words, are we going to pick up another hundred
thousand dollars ($100,000) of commercial as a result of cracking down or are we going to pick up another
two million dollars ($2,000,000)? I think the numbers are going to be bigger than a million dollars
($1,000,000), Mr. Manager. But that's money that we have not been able to collect. I would only ... also say
this. I think the Fire Department... the Fire Marshal ... is it the fire marshal? Is there a thing called the Fire
Marshal in the City?
Vice Chairman Plummer: Yes.
Commissioner Teele: I think the Fire Marshal's Office is probably uniquely one of the best offices to look
at these kinds of things with NET and Building and Zoning and Police because they know how to inspect. I
mean, their job is inspection. And there's a lot of training from the State Fire Marshal's office all the way
down. But, Mr. Manager, I'm very serious. I will not support ... I'm saying here and I know this is not going
to be very popular in the district I represent. I am prepared to bring ... to vote with my colleagues,
Commissioner Plummer, and I hope others, to bring the City's Solid Waste on parity with the County,
provided the Administration move between now and Monday to collect and to, at least, develop a budget
solution for the uncollected commercial garbage that's out there. And, Mr. Manager, I respectfully believe
that that could be close to a million dollars ($1,000,000). Prove me right or prove me wrong.
Vice Chairman Plummer: Let me ask, if I may, Mr. Teele. When you say ... because I've never seen this the
way it is in here and this is the document you proffered. In the County, they show you three hundred and
forty-nine dollars ($349) a year for Sanitation but they also hit you for another thirty-one dollars ($31) for
recycling. So, when you say in parity, are you saying three eighty?
Commissioner Teele: Well, I'd rather stop at three fifty.
Vice Chairman Plummer: Well, I'm asking for...
Commissioner Teele: Or three forty-eight. But this is ... yes, I'm saying...
Vice Chairman Plummer: Parity?
Commissioner Teele: Parity but not as it relates to the recycling component.
Vice Chairman Plummer: I wish to God they would drop that so-called administration fee. That thing has
caused more grief I mean, just make it three fifty and drop the damn thing called administrative fee,
whichever everybody thinks that you're using that for coffee money. OK?
Commissioner Teele: Well, I think we can do that legislatively. But I think it's very important that the
Commission decide if this is something we can live with as a Commission.
Vice Chairman Plummer: Sir, I've...
48 August 11, 1998
Commissioner Teele: The one thing that ... the one thing ... is Mr. Goode still here?
Vice Chairman Plummer: You and I voted for it before.
Mayor Carollo: Yes, he is.
Commissioner Teele: The one thing that Mr. Goode ... the Goode Commission recommended, which I think
was helpful in terms of helping me to focus on this issue, why in the name of God should we ... their
Commission recommends transferring Solid Waste to the County or they can ... at least they make that an
option, a menu.
Vice Chairman Plummer: Who?
Commissioner Teele: The Goode Commission. The Mayor's...
Mayor Carollo: No. They gave two options, either...
Vice Chairman Plummer: No, no, no. That's when he was drinking. He wasn't sober when he said that.
Commissioner Teele: They make it an option and that's what I'm clarifying.
Vice Chairman Plummer: Norman, get up.
Commissioner Teele: But this is the point. If it were transferred to the County, Mr. Attorney, what would
the fee be?
Vice Chairman Plummer: Three eighty.
Mr. Vilarello: It would be in line with what the County charges for its services.
Commissioner Teele: So why should we transfer another service to the County ... and I'm asking this
because ... I mean, I think we really ought to think it through ... when we can do it better, when this is one of
the few departments where the majority of the people in the department live in the City and a department
that, quite frankly, as Commissioner Gort has said, we do a better job of it so much so that we probably are
attracting the excess garbage? So, it's with that in mind that I'm recommending this, Commissioner Gort,
especially as it relates to this. Now, I would further suggest, Mr. Manager and Mr. Mayor, that if we were
to approve this, there would have to be certain minimum standards adopted at the time we approve this. I
met with the Hadley Homeowner Association last Thursday. They voted, in principle, to support me and
support this Commission in increasing the garbage fee but let me tell you what their condition was.
Number one, that every street in the City of Miami have a timetable that it's going to be swept on a periodic
basis. Number two, that the people that are collecting the garbage do it in a way that they carry brooms to
clean up the areas. Because there's a lot of trash being collected and the areas are not being cleaned up.
People don't mind paying the services if they get it. And, so, those are the kinds of things, Mr. Manager,
that I would be adding as a condition so that we would not only have good service ... I mean, as
Commissioner Gort, is describing but we would have better services in the area. And then, finally, what I
would want is a discussion with the external auditor to ensure ... and this is very important
Commissioners ... to ensure that the Solid Waste fee increases go strictly, only, totally to Solid Waste. In
other words, we've eliminated... under the external auditor's rule, we've eliminated this as an enterprise fund
because it has a reoccurring deficit and there's a whole lot of reasons for that that I don't understand. But
what I don't want is to vote on a garbage fee increase and then, the next thing, is that the people are getting
less service or poorer service or service that's not enhanced. So, those would be the caveats that I would
want to attach to this proposal. And Commissioner Gort and Commissioner Sanchez, Commissioner
Regalado, Mr. Mayor, I just would like to know, are there three of us that feel this way or is it just two of
us?
Commissioner Sanchez: No. Mr. Teele, I disagree and I'll tell you why I disagree. I disagree because right
now the biggest complaints that I get is, that they're not being provided the basic service. A lot of
49 August 11, 1998
complaints that I get is, trash is not being picked up. They pass from my house. They picked up my
neighbor's but they didn't pick mine. Then we have to call them and follow up on complaints to have them
go to their house and pick up. And it's just ... it's very simple. If you go to a good restaurant and your plate is
warm, your glass is full of water, the bread is warm, you get good service. You don't mind paying for it but
you got to have good service to pay for it and right now they're not getting it.
Commissioner Teele: But, Commissioner ... if I may, Mr. Mayor. But, Commissioner, don't you agree that
one of the problems we know we have is, we don't have enough employees in the department? We know
that the people are being burnt out. We know that there's been tremendous problems in the line area that
Commissioner Regalado talked about, where we had cranes that were down for three and four and five
months. I mean, we know that. The problem is we're not going to solve the quality of service if we don't
give them dollars and the solution, I believe, is to provide dollars but to ensure that those dollars go to Solid
Waste and they don't, with all due respect, don't go to computers or they don't, with all due respect, go to
education or some of the other things that are important.
Vice Chairman Plummer: Norman Charles has been before this Commission outlining the need for the last
three to six months of thirty-six to fifty additional people in that department that are sorely needed and that's
one of the problems. In traveling yesterday in West Grove, where they were two days behind in picking up
the trash, there was a brand new truck totally broken down and that was because of the maintenance
problem. The claws were breaking. And what you've got to do ... and, Joe, I'm ... you know, the idea, you're
not going to get better service unless you have more money. Now, where do you get the money from, you
can argue about. But you've got to get more people to do the job. You've got to get better equipment to do
the job. And, if you don't, you're not going to have a better service.
Commissioner Sanchez: J.L., I agree with you.
Vice Chairman Plummer: OK? So it's just a matter, where do the dollars come from?
Commissioner Sanchez: I agree with you with the money. I agree with you with the money, all right? But
if you don't have accountability and control, you could have all the money in the world and you're not going
to do it.
Vice Chairman Plummer: Well, I think that that's our stick up here, OK? I think that we are the ones who
have got to be the ones that are going to say, all right, Mr. Manager, you got "x" in more employees.
You've got "x" for more equipment and we are going to do and restrict it, as we did with the fire fee. The
fire fee for twenty-four dollars ($24.00) was solely for equipment. And I will fight that that's what we did,
that's what it was told to the public for. It was acceptable to the public and if we put in a garbage fee,
ex -number of dollars has got to go for equipment and more. And that's the only way I know that you're
going to get better service. And there's only one other thing that you got to take into consideration and that's
the tipping fee and the tipping fee is going to continue to go up.
Mayor Carollo: Go head, Commissioner.
Commissioner Sanchez: Mr. City Manager, I have one question for you and correct me if I'm wrong. In
Workman's Comp. we have 33 percent of the City employees participating Workman's Comp, correct?
Correct me if I'm wrong.
Mayor Carollo: Little lower than that. Little lower.
Commissioner Sanchez: Little lower. Correct me if I'm wrong. Give me a ballpark figure. Twenty-eight
percent, 30 percent?
Mr. Warshaw: You're close.
Commissioner Sanchez: I'm close. How many of them for Solid Waste?
Vice Chairman Plummer: Fifty percent.
50 August 11, 1998
Commissioner Sanchez: Fifty percent.
Mayor Carollo: No, no, no, no, no, no.
Mr. Warshaw: I don't know the answer to that.
Commissioner Sanchez: I don't know. Somebody just said fifty percent.
Mayor Carollo: No, it's not so.
Vice Chairman Plummer: Or more. Or more.
Mayor Carollo: You have, I think, an equal amount, more or less, that comes from Solid Waste. At least
the last figures that I saw.
Commissioner Sanchez: If we don't fix it ... we have to fix it. And if we don't fix it, we're not going to get
anything accomplished. This City needs to get fixed and quick.
Vice Chairman Plummer: Well, the number you really want to hear, the average across the United States of
Workman's Comp claims against the government is around six to eight percent. We're running thirty-three.
Commissioner Teele: Well, I think Mr. Goode said that it's the worst Worker's Comp system process that
he's ever seen. So, the question just becomes ... I mean, can we reach at least a consensus that we want the
Manager to begin to build a budget that increases the Solid Waste fee base that's comparable to what every
other city in the County is doing? I mean, you know, you've got the numbers here. This isn't ... these aren't
my numbers.
Commissioner Gort: The problem with that, Teele, if you're going to make that comparison... and this is
something that's being brought up by a lot of the residents... then let's compare the millage also. If you're
going to compare Solid Waste, let's compare the millage then.
Commissioner Teele: If you will move that the millage be reduced ... you see, the structural problem with
this City right now is the fact that we're cross -subsidizing things. We ought to just let everything stand on
its own, OK, and then we'll figure out what we cut somewhere else. But we cannot continue to subsidize
Solid Waste from the General Fund. Right now the Solid Waste is being subsidized to the tune of how
much, Mr. Dipak?
Commissioner Gort: Ten million dollars ($10,000,000).
Commissioner Teele: No, it's more like fifteen. How much subsidy are we putting into Solid Waste right
now?
Vice Chairman Plummer: From the General Fund.
Commissioner Teele: From the General Fund and from other ... and from other funds.
Mr. Parekh: Around twelve million dollars ($12,000,000).
Commissioner Teele: That includes the ... OK. So, we're subsidizing Solid Waste right now to the tune of
twelve million dollars ($12,000,000). If we take the Solid Waste to three hundred and fifty dollars ($350),
which is comparable to what the County ... I'd like to be ... the County's at three forty. I'd like to be at three
forty-eight so at least we're below the County. But if we take it to three fifty, how much additional revenue
are we collecting?
Commissioner Gort: Twelve million dollars ($12,000,000).
Vice Chairman Plummer: It's 11. It's 11 or 12.
51 August 11, 1998
Commissioner Gort: My understanding was an additional twelve million dollars ($12,000,000), which was
stated before.
Commissioner Teele: It's an additional roughly twelve...
Commissioner Gort: Twelve million dollars ($12,000,000).
Commissioner Teele: It's an additional eleven to twelve million dollars ($12,000,000) and if the Manager
will move forward on the commercial stuff ...I mean, we can make Solid Waste at least stand on its own
from a structural point of view. Now, if you're saying to me, Commissioner Gort, if you're saying that the
problem with that is the millage rate, then one mill equals what, eleven million dollars ($11,000,000)?
Mr. Parekh: Eleven point one eight.
Commissioner Teele: I mean, the way to build this budget is through this kind of discussion and the way to
do it is, you support the home ... the Solid Waste, providing there's a one million...a one mill reduction.
Commissioner Gort: See, the problem with the argument is, everybody constantly using the fee, that it's not
comparable with the other cities but, at the same time, if we going to make comparisons, I think you're
right, we have to look at in mills also. How much are the other cities are paying the mills? And this is the
argument that the people that wanted to abolish this City came up with.
Vice Chairman Plummer: Am I right or am I wrong, the magic number is twenty million?
Commissioner Teele: For what?
Vice Chairman Plummer: That's what is needed.
Commissioner Teele: Sixteen.
Vice Chairman Plummer: No, we're not talking 16. What is the magic number? You said before it was
four, 12...
Commissioner Teele: He's got a document out here...
Commissioner Teele: ...right now that says eight. That's sixteen million dollars ($16,000,000). Now, he's
not going to jump around on that anymore.
Vice Chairman Plummer: What is the magic number, Mr. Dipak?
Mayor Carollo: After being here some three hours, I see...
Vice Chairman Plummer: What is the magic number?
Mayor Carollo: ...we're still on ground zero.
Mr. Parekh: Under option three, there is one point six million dollars ($1,600,000) for capital equipment for
Solid Waste.
Vice Chairman Plummer: Can I have a bottom line?
Commissioner Teele: That's not ... he asked you, based upon the budget...
Mr. Parekh: The real problem is...
Commissioner Teele: ... deficit ... forget options.
52 August 11, 1998
Mr. Parekh: For fiscal year'99 is around sixteen million dollars ($16,000,000).
Vice Chairman Plummer: OK. So, that's the magic number?
Mr. Warshaw: For'99.
Mr. Parekh: For'99.
Vice Chairman Plummer: OK. Now, is that acceptable for the five-year?
Mr. Parekh: No.
Vice Chairman Plummer: Then what is the magic number?
Commissioner Teele: Each year it's a different number, J.L. Look at the bottom year. Next year it's sixteen
million.
Vice Chairman Plummer: Where did I hear...
Mr. Warshaw: Sixteen point five to twenty-five million.
Vice Chairman Plummer: Where did I come up with the twenty million dollars ($20,000,000)?
Commissioner Teele: And then it's eighteen million and then it's 22, 24 then 25.
Mr. Parekh: Option One.
Vice Chairman Plummer: All right. So, the...
Mayor Carollo: Well...gentlemen, I hope the Administration has gotten at least a better feel for the
direction of what a majority of this Commission wants than I have. But at least, after three hours, let's see if
we could all agree in one thing...
Vice Chairman Plummer: And what is that, to meet Friday morning?
Mayor Carollo: What is the will of the Commission, when it would like to meet again between tomorrow
and Friday?
Vice Chairman Plummer: Friday morning, 7:00.
Commissioner Teele: Wait, wait. Mr. Mayor?
Mayor Carollo: I'm not ending the meeting. I'm just trying to at least find out when we're going to meet
again..
Commissioner Teele: Mr. Mayor, but in all fairness... see, this is the problem. I think the Commission is
really getting the blame for everything and we have to come to some consensus today. I mean...
Mayor Carollo: I've been saying that, Art but, you know, no one's been listening.
Commissioner Teele: I mean, we have to come to a consensus.
There is not enough time to wait until Monday and then have a budget document prepared. Now, we either
are going to vote cuts of sixteen million or we're going to vote revenue enhancements of sixteen million or
we're going to vote revenue enhancement and cuts netting sixteen million dollars ($16,000,000). Now...
Commissioner Gort: I think that's what we've been saying from the beginning.
53 August 11, 1998
Commissioner Teele: Yeah, but we're not moving.
Commissioner Regalado: I ... Mr. Mayor, if I may. I was trying to present a motion saying to the Manager,
come back with two million in the new positions that you have mentioned, unclassified, any possibility of
reductions. I ... you know, I don't ... I'm not going to give you a wish list of any departments or every
department but I'm just asking you to come back with some reductions in terms of salaries for this year and
next year. Last week we met for five minutes and approved four million and a half dollars ($4,500,000) of
raises. I mean, that was quick and we can ... excuse me.
Vice Chairman Plummer: Yeah, but now you want to take it away.
Commissioner Regalado: No. What I'm saying is that, you know, we've been discussing here the
possibility of trying to convey ... at least, that's what I'm trying to do ... to you the message, the
Administration, that you need to come back with some cuts and then I'll participate in the other half. I have
not said anything about not participating. I will tell you that I feel that I have a problem with the garbage
fee for one reason only. And Commissioner Teele is right when he's saying we have to bring that to what
the County or other entities are charging, but I do have a problem, Mr. Manager and members of the
Commission, is that on 1996 and '97 the Fire Department went walking through the streets of Miami and
they just decided that after 20 years or 50 years of you having a house that you bought so many years ago,
you had another unit and you get double billing from the garbage fee. Now, if we were to double that
garbage fee, you'll be quadrupling that garbage fee for many people in the City of Miami. That is my
problem that I have with that. I would tell you that I agree with some kind of fire fee in terms of
commercials, in terms of even every, every building in the City, if that is possible, a small amount for the
fire service and the rescue service that the people receive. But my, my ... Mr. Manager, my motion, if there
needs to be one, is to ask you to come back with the cuts that we've been talking about here for three hours
and then, from then on, we'll try to do the rest.
Mr. Warshaw: Commissioner, I just wanted to qualify one point. On the two million dollars ($2,000,000)
staged hiring for 1999, while I believe the Oversight Board would accept that two million as a non recurring
reduction only for '99, keep in mind that in years two, three, four and five, where those people would then
be working, you would still have to, either through some other means, adopt revenues and, or cuts to satisfy
the 18, 22, 24 and 25 million for the four years.
Commissioner Teele: Are you talking about Police?
Mr. Warshaw: Talking about the whole budget.
Mr. Vilarello: No, middle management hire.
Mr. Warshaw: Talking about the two million dollars ($2,000,000) in the Blue Ribbon initiatives that we
would stage and delay the hiring next year. They might accept and they probably would accept, as long as
those people were working by the beginning of fiscal year 2000, so then you'd have to have recurring
revenues as indicated in years 2000 and beyond to cover those expenditures.
Commissioner Regalado: Yeah. But, Mr. Manager, we heard Mr. Ray Goode, that his committee, himself
and his committee, carries the biggest moral weight than any committee can carry to go before the
Oversight Board. He has said that we can plan for the next year and then come back and modify those
figures. We're talking those two million for this year, that is correct. And do you think that the Oversight
Board will...
Mr. Warshaw: Talking about the two million for the next year, you're right.
Commissioner Regalado: Right.
Mr. Warshaw: I agree with the Committee that, if, in the out years, we, as a city, were able to come up with
additional expenditure cuts and, or revenues as a result of some of the things we've talked about today, like
54 August 11, 1998
appraisals, like the private haulers, that the Oversight Board would probably be more than willing to listen
to those as reducing these fees in the out years.
Commissioner Regalado: Well ... so, that is my position in terms of what are we voting on.
Mayor Carollo: Let me see if I can understand you, Commissioner.
Commissioner Regalado: My position is very clear, Mr. Mayor. It's...
Mayor Carollo: Well, no, it's...
Commissioner Regalado: Come back with some cuts from the salaries unclassified and the new positions
and then, if the rest is needed, I will be voting for a modified fire fee.
Mayor Carollo: OK. Let me understand again. You say that you want some cuts for the ... from the
unclassified, some cuts. I already stated, for the record, that we have gone over that already, myself and the
Administration, because this is one of the areas that we had looked at. You're looking at, at best case
scenario, a million dollars ($1,000,000), most likely half a million, so that's where you're looking at in there.
Let's round it off to the middle ground so that we could take a guess, maybe seven hundred and fifty
thousand, the Manager would come back with some numbers in that. In the new positions, the Budget
Advisory Committee has come back with the figure of two million, which the Budget Director agrees with
that figure, so we're looking at two million seven hundred and fifty thousand, more or less, that we have
there. Now, out of the remaining dollars that we would have, not counting anything happen with the
Off -Street Parking, that will amount to approximately thirteen million eight hundred thousand dollars
($13,800,000) approximately, rounded off to fourteen million, if you like. You're suggesting that the
dollars come from where, part millage and the rest from the...
Commissioner Regalado: Well, Mr. Mayor, in five minutes, the other week you were here ... I thought you
were here. In five minutes we approved increase ... to increase the millage.
Mayor Carollo: Yeah, that was here. But then, for hours and hours you were on radio saying many other
things, including that I want to raise taxes.
Commissioner Regalado: I don't know, Mr. Mayor. Because ... no, Mr. Mayor. I don't know. Because ... I
don't know ... you say that you work all the time in the budget and the City. I don't know how you got the
time to listen to the radio all day.
Mayor Carollo: I don't, Commissioner. I don't, Commissioner.
Commissioner Regalado: But I wasn't ... I wasn't ... I wasn't on the radio. You know, I work in the radio. I
work for a living. I mean, you make a salary. We pay you, Mr. Mayor, but...
Mayor Carollo: Well, I know you're on radio but don't get so defensive, Commissioner, you know.
Commissioner Regalado: But let me ... no, no, I'm not going to get defensive. You know, I work for a
living, Mr. Mayor.
Mayor Carollo: You know, if you were on the radio, then say you were on the radio.
Commissioner Regalado: I go to the radio. I could ... you.
Vice Chairman Plummer: Boy, am I glad I'm in the funeral business.
Mayor Carollo: Boy, you know.
Commissioner Regalado: OK. You know, Mr. Mayor —you know, you said...
55 August 11, 1998
Commissioner Teele: Gentlemen, in all fairness...
Commissioner Regalado: You said, there's nothing personal here.
This is nothing personal.
Commissioner Teele: In all fairness, in all fairness, in all fairness, gentlemen.
Mayor Carollo: Art, let him go, let him go, let him go.
Commissioner Regalado: If I may?
Commissioner Teele: But ... Tomas, Joe, look, in all fairness, we have a very serious issue.
Commissioner Regalado: The Mayor said that we shouldn't discuss anything that were not on the agenda. I
did not know that the radio programs were in the agenda, so we're discussing that.
Mayor Carollo: No, Commissioner. I'm trying to get through to exactly what is it that you want.
Commissioner Regalado: I just said it. I just said it, Mr. Mayor.
Mayor Carollo: You know, because you have me very confused. You say here one thing but then you go
out and say something different, Commissioner.
Commissioner Regalado: No, I just said it, Mr. Mayor. I just said to the Manager exactly what I'm going to
do.
Commissioner Teele: Tomas, Joe, look, this is not getting us anywhere. It's not going to get us anywhere.
We've got a hard...
Mayor Carollo: Commissioner Teele, I understand what you're saying but, you know what, this is a
decision that if all five members of this Commission are not together on, it's not going to work. You know
why? Because if it comes three two...
Commissioner Teele: It's going to be three, two.
Mayor Carollo: And you have members of this Commission then going out there and demagoguing the
issue to death, where other members of this Commission are going to be attacked, then it's not going to be
fair to you or any of the other members of this Commission that vote for the right thing.
Commissioner Regalado: Mr. Mayor, I will challenge you to say one word that I have said about one
member of this Commission.
Mayor Carollo: Commissioner, you know what you said, but that's fine.
Commissioner Regalado: No, Mr. Mayor. You're being unfair. But, anyway, that's not...
Mayor Carollo: Let's get to the bottom line, Commissioner.
Commissioner Regalado: That's not the case. The bottom is that also, I'm willing to the rest of the money,
Mr. Mayor, consider the options that your committee will bring.
Mayor Carollo: And that's what...
Commissioner Regalado: And that the Manager will bring.
Mayor Carollo: And that's what I'm getting to.
56 August 11, 1998
Commissioner Regalado: But, first of all, I have said it before several times, the Manager has to come back
with some cuts in terms of the budget process. The people of Miami need to see that before we hit them
with some raises in taxes or fees. Mr. Mayor, since you seem to have a very good relation, and I know you
do, with the Oversight Board, I would like to ask you to ask them to expedite about 18 contracts that they
had had for about a month and a half. Next Monday...
Mayor Carollo: Commissioner, you could go directly to the Oversight Board. I'm not a messenger boy for
anybody.
Commissioner Regalado: Mr. Mayor ... well, next Monday there's going to be some elderly people who
would not have lunch because axiom. would have run out of money because the contract has been in the
Oversight Board for a month and a half.
Mayor Carollo: Commissioner, can we go back to the dollars ... and let's stop playing the games of using the
elderly anymore, OK? Let's get to the point of dollars.
Commissioner Regalado: Well, Mr. Mayor, on Monday they'll be without lunch.
Mayor Carollo: I just want to find out exactly where you stand at so that we can move ahead.
Commissioner Regalado: Absolutely.
Mayor Carollo: Now, you've stated unclassifieds, a little bit of money.
Commissioner Regalado: Yes, sir.
Mayor Carollo: We went over that. That's about seven hundred and fifty thousand. On new positions, two
million. We're still left with thirteen million eight hundred thousand. Now, your statement here,
Commissioner, was that you would be willing to go with a little increase in the fire fee. A little increase in
the fire fee is not going to take thirteen million eight hundred thousand dollars ($13,800,000) in. So, my
question is, do you prefer to balance it out across the board or do you prefer to throw it all in a fire fee
because you don't want it to go into the garbage fee? I just want some directions from you too. Whether I
agree with some of the statements the other members of the Commission made or not, they've made their
positions clear.
Commissioner Regalado: Mr. Mayor, I will consider all options. And you said, for instance, that you
support all the recommendations that your committee made. That's what you supported.
Mayor Carollo: You heard what I stated for the record, Commissioner.
Commissioner Regalado: Yeah.
Mayor Carollo: So, go back to the record.
Commissioner Regalado: Yeah, I did, I did.
Mayor Carollo: Very good.
Commissioner Regalado: I did and you support that. So, I'll consider other options.
Commissioner Teele: Tomas, Mr. Mayor, Commissioners, before I was sort of cut off on this, I was asking
my colleague, Commissioner Gort, who is, has, since everybody's putting their profession on the record, a
real understanding of municipal finances as in his role as a financial person, and it seems to me, Willie, that
the rational for at least bringing garbage into parity is a much better option than anything else that is on the
table right now in this regard. The Oversight Board, by fiat... I don't know if they can remove us for
malfeasance, misfeasance. I mean, I don't really want to get into that. I don't think we ought to spend a lot
of time on that. But I don't think there's any question that the Oversight Board, by fiat, could transfer Solid
57 August 11, 1998
Waste to the County. Do they have that authority under the Interlocal Agreement?
Mr. Vilarello: It is my opinion, they do not have that authority.
Commissioner Gort: Let me make it very simple. I think we all have agreed ... and you all correct me if I'm
wrong. I think we're all saying is, let's see if there's some way that we can make some cuts and if we can do
this, fine, I think we would add that. And going with the Mayor's number, you're talking about seven
hundred and fifty thousand, two million, I think, hopefully, God willing, we'll be able to do something with
Off -Street Parking as an addition... two million dollars ($2,000,000). I think what we're saying is, let's try to
do the best and cut it and make the best deal for the City. Whatever's left, let's do it across the board. That's
what's I'm saying. Let's do it right across the board.
Mayor Carollo: The bottom line ... and, Commissioner, I thank you for being so upfront. The bottom line is
that we're going to be faced with a major, major tough decision.
Commissioner Gort: Mr. Mayor, let me interrupt you a minute. Because I think we got to put an emphasis
on this and the one thing we need to do, we need to educate our community.
Commissioner Teele: Right.
Commissioner Gort: And we also got to make everybody aware that, if we do not make a decision,
somebody else is going to make a decision and it's going to be a lot worse than our decision. And this is
one thing we need to understand because we are in the neighborhoods. We are in the streets. We run into
people every day that they give us their complaints. The people that are going to be making the decision if
we don't make it, they're not in the neighborhoods.
Mayor Carollo: Commissioner Gort, you are correct in that and that's part of the reason why we've had so
much turmoil. Because while some of us have been working to balance the major deficit that we had, you
had others going out on a weekly basis saying there was no deficit. This never happened and many other
things. And even today you have many things that are being said that are not true and, in some areas of our
community, the public is not getting both sides. They're only getting this information and misinformation.
And what I am saying is that, if this Commission doesn't speak as one voice ... like I remember, not too long
ago, before the November elections, used to be the case, then it's not going to work. You know why?
Because you could get a three/two vote here and the minute that the pressure comes and the attacks comes
to those that vote in favor of something, eventually, one out of the three ... and I'm not going to blame 'em... is
going to get fed up being the sacrificial lamb and we're going to go back again to take things out that was
approved. So, we're never going to get anywhere. So, what I'm saying is, that either speak as a voice and
do the right thing for this City and stop the demagoguing or, you know, let someone else make the decision
for us, if we do not have enough courage to do what's right for this City. Now, the Manager, the Budget
Director and other staff members have heard different opinions from this Commission. It is my
understanding that what the Commission wants is for the Administration to come back and give direct,
direct recommendations. Unless I misunderstood what's been asked, then I think that the Administration
has their marching orders from the Commission.
Commissioner Teele: Mr. Mayor, let me say this so that I'm not misunderstood. I don't know what that's
going to be. I have no idea what this is going to accomplish but, again, I'm just one person and I'll go along
with whatever the other Commissioners want to do, as long as I can vote my conscious. Today is the day
we need to, not necessarily vote on a budget, but we need to vote on directions. Delegating to the Manager
the responsibility of coming back is going to be no more than to start out, whenever we come back, where
we are now.
Commissioner Gort: That's correct.
Commissioner Teele: Because the Manager is not going...I mean, you heard the Fire Chief ..God bless
you ... and you're going to here that time after time after time. Now, either this Commission is going to have
to say, we're going to direct the Manager to reduce certain areas or we're not. And if we wait and come
back on Thursday or Friday, this is going to be a very long and protracted meeting, and you saw how tense
58 August 11, 1998
this thing's going to get. My fear is that we're going to dissipate into a discussion that is not going to be
helpful either for the City or the image of the Commission and, quite frankly, I think the Commission, as an
institution, has been unfairly treated. I'm not sure that we have not invited some of this on ourselves but we
don't have any options, gentlemen, but to either raise revenues or reduce expenses. That was where we
started out today. That's where we're leaving today. And two of us have said we're prepared to raise
revenues in the area of Solid Waste. One has said that he may be willing to support Solid Waste if there is a
commensurate reduction in the millage and, apparently, three have said or four are saying do it across the
board.
Vice Chairman Plummer: Well, may I interject...
Commissioner Teele: I just want to be very clear, J.L.
Vice Chairman Plummer: Sure.
Commissioner Teele: I am not in favor of any across the board anything because that's going to be no
accountability. It's going to be business as usual. You're not going to be able to enhance anything. I think
we're going to be better off, as an institution and as a body, if we go to the public and say we're going to
improve services in this area and this is why we're going to charge you. Now, the two areas are either going
to be Fire and Police. Those ... I mean ... I'm sorry, Fire and Solid Waste. Personally, I think it is much easier
to sell to the public that we're going to do a better job in Solid Waste because everybody has a Solid Waste
relationship with the City on a daily basis. We can make some adjustments on the commercial side by the
supplemental. We can make some adjustments on the commercial side by increasing. And I'm not wedded
to this as an issue but I will tell you this, unless and until the litigation and the concerns about the fire fee
have been totally extinguished, I think, if you're not careful, you're going to give rise to a citizens ... I don't
want to use the word revoke but a citizen finance litigation that could put this whole thing in jeopardy. If
we were to adopt the fire fee that we proposed a year ago or that was proposed a year ago, I think, at this
point, we would have a tremendous backlash from the public because we voted on it, we didn't do it, and
now it's going to come back and bite us in the butt. An across the board increase, I think, is ... my personal
view and I probably will support it if four Commissioners are for it, but I think that's business as usual.
Because there's going to be no way to have accountability. There's going to be no way to go to anybody and
say things are going to be different. It's just going to be more taxes and more costs and what? What are we
going to give the citizens more? I think we can commit to every citizen that we're going to sweep your
streets. I don't know right now how often the streets are swept but in Hadley Park ... in the Hadley ... in the
Model City's area, apparently they haven't had their city streets swept in two or three months. Now, one
person, who was at the meeting ... two or three years. One person, who was not at the meeting, and the Park's
Director and his staff was there, who was not of that group said that their homeowner association has their
street swept regularly. So, that raises question, are we sweeping some streets and not sweeping others? But
I think we need to develop a minimum standard. We need to say we're going to make this the best, the
cleanest and the best garbage system, and I think we can sell that. On the other hand, I will support an
across the board increase of whatever that is, if that's what four of you want to do. But I don't really believe
that's the way to go and I think we're not making hard decisions. I'm willing to entertain the fire fee. But I
think we need to make some decisions and if there's three Commissioners here wanting to increase the fire
fee, I will be the fourth. Or if there's two, I'll be the third.
Vice Chairman Plummer: Well, I got a question. Is anybody up here saying that we're not going to
implement the millage increase?
Commissioner Teele: J.L., I didn't come to the meeting because I will not support a millage increase.
Vice Chairman Plummer: OK. Well, let me tell you why I think that maybe you ought to consider it and
the reason that I voted for it. That is tax deductible. That four million dollars ($4,000,000) that is under the
millage cap is deductible from your income tax, OK? And that's one of the reasons I voted for it. I mean,
our bottom line of that so-called magic number, whether it's sixteen million or twenty million, four million
goes in to supplement that magic number and when you do that from the millage, you might not like to pay
it but at least it is tax deductible.
59 August 11, 1998
Commissioner Teele: J.L., I have said to myself, I'm not going to debate it. I'm not going to discuss it. I'm
going to vote my conscious. But I'll tell you this, from a tax policy point of view, from a budget policy
point of view, going to one hundred percent of your millage rate is going to absolutely affect everything
about this City, especially the image of the City. And I would much rather get the same four million dollars
($4,000,000) somewhere else. But if that's the way the budget gets balanced and there's three, four
Commissioners here for it, all be it, but I will not be the third Commissioner to support an increase in
millage because I just think, from a policy point of view, that's the wrong direction.
Mayor Carollo: I think everyone has expressed themselves. What I'd like to find out, at least in leaving
here and agreeing with something, is when will this body be able to meet again as the final time to come to
an agreement on something, whatever it is?
Vice Chairman Plummer: Well, I just want to make sure that Ray Goode goes to Georgia and gets a bigger
truck to buy watermelons. We heard that many, many times.
Mr. Ray Goode: We'll make it up in volume.
Commissioner Sanchez: And bring back four.
Mayor Carollo: Thank you, again.
Vice Chairman Plummer: All right. Mr. Mayor, what time are we meeting on Friday?
Mayor Carollo: Is Friday the date that a majority of the Commissioners can meet?
Vice Chairman Plummer: I'll start at seven a.m.
Commissioner Sanchez: Seven a.m.
Vice Chairman Plummer: Six thirty.
Commissioner Regalado: Ten. For me 10 is the earliest.
Vice Chairman Plummer: No, I've got to be out of here by noon. I have got to be ... I've got an obligation.
Commissioner Regalado: But I finish my radio show at 10, J.L. I can be here, you know... earliest I can do.
I can be here any time during the evening, afternoon, but...
Vice Chairman Plummer: Well, that's worse for me.
Commissioner Regalado: But I have to be there.
Vice Chairman Plummer: All right, 10:00, if that's the best you can do but, gentlemen, I have an obligation.
I cannot make any difference at noon.
Mayor Carollo: You all figure it out and choose what time you would like to meet on Friday.
Commissioner Teele: Mr. Mayor, we have to agree on a time. I mean, look...
Vice Chairman Plummer: Ten o'clock, Friday. Friday at ten o'clock.
Commissioner Teele: Why don't we do this, Mr. Mayor. You see, I really think we've got to be very
careful about the image of the Commission. We can't agree. We can't even agree on a time to come back. I
mean, that's the way the newspapers will write the story if we're not careful.
Vice Chairman Plummer: But we have personal obligations, Commissioner.
60 August 11, 1998
Commissioner Teele: Then why don't we do this. Why don't we have a workshop Friday morning at 9:00,
8:00. Let Commissioners just ask the dumb questions and the smart questions so that when we start the
meeting, you know, a lot of this will have been aired out. Is that satisfactory to you, to have an informal
workshop, which...
Commissioner Regalado: I can't be here. I cannot be here at 9:00.
Vice Chairman Plummer: See, that's the problem.
Commissioner Regalado: I can do the workshop Thursday evening, if you want to do it Thursday evening.
Vice Chairman Plummer: Well, I'll tell you what I do feel, all right. I do feel that a workshop at 9:00 for
questions to be asked and answers given at least put us ahead of the game and then go into our formal
meeting, giving Commissioner Regalado the opportunity to have a 10 or 15 minute window to ask his
questions.
Commissioner Teele: Well, let me ask this. Is there any objection to having a workshop on Thursday
afternoon? Is that ... that would not be mandatory. Nobody's got to come. It won't be a Commission
meeting. Is that...
Mayor Carollo: Let me make it even easier for all of you. I'd like to ask the Budget Director and the
Manager and staff to be on call for any one of you that would like to call them and meet with you at any
time of the day or afternoon, to answer any of your questions, go back and forth. And have them on stand
by just for that.
Vice Chairman Plummer: I think that rather than trying to have a formal workshop on Thursday, I think the
Mayor's suggestion of each and every one of us can call individually.
Commissioner Teele: J.L., let me just tell you this. If you have to leave at 12:00...
Vice Chairman Plummer: On Friday.
Commissioner Teele: On Friday?
Vice Chairman Plummer: Yeah.
Commissioner Teele: I just think, in all honesty, we've got to relook at this thing. Because we've
accomplished a lot today, in that we know where ... each other are. We're getting there. But when it gets
down to what cuts, there's not been any discussion on any cuts.
Vice Chairman Plummer: How about Thursday morning? You've got radio program Thursday morning?
Commissioner Gort: Yeah, every morning.
Commissioner Regalado: Yeah, everyday.
Vice Chairman Plummer: I don't listen to the radio.
Commissioner Regalado: Well, you should.
Mayor Carollo: Don't worry.
Vice Chairman Plummer: Why?
Commissioner Regalado: Because, then, you'll know if we're talking bad about you.
Vice Chairman Plummer: Excuse me. If there's one time in my life that I'm glad that I don't speak Spanish
61 August 11, 1998
is because of Cuban radio. I don't have to listen to that.
Commissioner Regalado: Wow!
Commissioner Teele: Gentlemen, Mr. Mayor...
Mayor Carollo: I'm not going.
Vice Chairman Plummer: Where are we? What time?
Commissioner Teele: Mr. Mayor.
Vice Chairman Plummer: Friday at 10?
Commissioner Teele: Friday at 10 is...
Vice Chairman Plummer: I don't see any other way.
Commissioner Teele: Did you have an item on the 108 that you wanted...
Vice Chairman Plummer: Yes, sir, I do. Let me ask you this. How about this, would you like to meet
Thursday at 10:00?
Commissioner Teele: I would prefer to meet Thursday...
Vice Chairman Plummer: Thursday at 10 and then, if we have to, we can meet again on Friday.
Commissioner Regalado: Fine with me.
Vice Chairman Plummer: All right. Let's —Mr. Manager, Thursday at 10 a.m. Hopefully, we can conclude
but at least, if we can't, it gives us another day to do it.
Commissioner Teele: Mr. Mayor, is that satisfactory with you?
Mayor Carollo: That's fine. My time is your time. Thursday, I think, is a lot...
Vice Chairman Plummer: There's a motion...
Mayor Carollo: ...more reasonable to me. I just hope that, you know, we don't keep putting it further into
later on.
Vice Chairman Plummer: There's a motion by Commissioner Teele, seconded by Commissioner Gort, that
this Commission will convene on Thursday at 10 a.m. and Friday at 10 a.m., if necessary.
Commissioner Teele: One question. Can we get a written document, before the Thursday meeting, of the
budget cuts that you all are recommending or a menu of cuts ... Dipak, a menu of cuts so that we don't come
in here...
Vice Chairman Plummer: A buffet.
Commissioner Teele: ...and start trying to look at a document that we don't —we've not seen?
Mr. Warshaw: Yes.
Commissioner Teele: Because I'm going to be very candid with you. There are going to be a lot of cuts that
are going to offered up, so we need to all understand that before we come in. On the question.
62 August 11, 1998
Vice Chairman Plummer: OK. Calling the ... all in favor, say "aye."
The Commission (Collectively): Aye.
Vice Chairman Plummer: Opposition?
The Commission (Collectively): Aye.
Vice Chairman Plummer: Show unanimous.
The following motion was introduced by Commissioner Teele, who moved its adoption:
MOTION NO. 98-809
A MOTION SCHEDULING A SPECIAL COMMISSION MEETING
ON THURSDAY, AUGUST 13, 1998, 10 A.M., AND IF NEED BE
ALSO ON FRIDAY, AUGUST 14, 1998, BEGINNING AT 10 A.M.,
TO ADDRESS THE PROPOSED BUDGET FOR FISCAL YEAR 1998-
1999 AND REVISED FIVE YEAR PLAN, 1999-2003; FURTHER
DIRECTING THE CITY MANAGER TO PREPARE A MENU OF
PROPOSED CUTS TO THE CURRENT BUDGET FOR
COMMISSION CONSIDERATION.
Upon being seconded by Commissioner Gort, the motion was passed and adopted by the following vote:
AYES: Commissioner Wifredo Gort
Commissioner Tomas Regalado
Commissioner Joe Sanchez
Commissioner Arthur E. Teele, Jr.
Vice Chairman J.L. Plummer, Jr.
NAYS: None.
ABSENT: None.
6. CITY MANAGER TO EXECUTE JOINT PARTICIPATION AGREEMENT — MIAMI-DADE
COUNTY, FOR PARROT JUNGLE AND GARDENS OF WATSON ISLAND, SECTION 108 LOAN
GUARANTEE APPLICATION; CONDITIONS FOR CITY TO SUBSTITUTE ITSELF AS
GUARANTOR AND RESPONSIBILITIES IN EVENT OF DEFAULT.
Vice Chairman Plummer: I've read the 108 before on the Parrot Jungle. Do I need to read it again?
Commissioner Gort: He needs to have it explained.
Commissioner Teele: Mr. Mayor, I mean Mr...
Vice Chairman Plummer: Wait, wait.
Commissioner Teele: Mr. Chairman, I just need to understand how much 108 capacity will be left if we
approve this?
Vice Chairman Plummer: Mr. Manager? This Commission is not adjourned. Mr. Manager? Gwen?
Ms. Gwendolyn Warren (Director, Community Development): Approximately twenty million.
Vice Chairman Plummer: Mr. Teele, approximately twenty million left.
63 August 11, 1998
Commissioner Teele: Of 108?
Ms. Warren: Correct.
Commissioner Teele: And what will the County's obligation be on the 108 and what will the City's
obligation be as relates to this?
Ms. Warren: The original agreement is the same. We're making three specific amendments to the
agreement. One would be in the third and fourth year, where the City, if, in fact, there is any loss that those
funds default, those funds come from a CDBG set aside of approximately two hundred and fifty thousand.
Commissioner Teele: Per year?
Ms. Warren: For year two and three.
Commissioner Teele: So...
Ms. Warren: That we would maintain a reserve.
Commissioner Teele: So, let me just understand this. The issue in my mind was we're being
responsible... held responsible for 80 percent of the loan, is that right?
Ms. Warren: At the fourth year or whenever applicable.
Commissioner Teele: In the fourth year ... going into the fourth year, we own the land and how much
money, on an annual basis, is the City getting in revenues from the rent?
Vice Chairman Plummer: Minimal annual return.
Ms. Arlene Weintraub: Arlene Weintraub, Planning and Development. Years one and two, which is during
construction, the City receives two hundred thousand dollars ($200,000) minimum annual guaranteed rent.
Years three and four, it goes up to three hundred thousand. Year five, four hundred thousand. It continues
to increase.
Commissioner Teele: And what is the County getting on an annual basis?
Ms. Weintraub: The County is receiving no rental return.
Commissioner Teele: No. What ... that isn't what I asked. What is the County getting on an annual from
this deal?
Ms. Weintraub: The County has asked for, and the owner of Parrot Jungle has agreed to give a donation
toward rebuilding of the Metro Zoo Aviary and there is a schedule of payments that begins in year three of
operations, where...
Vice Chairman Plummer: It's a million two.
Ms. Weintraub: It's a million two over time? I know the first year is twenty-five thousand
Commissioner Teele: A million two a year?
Ms. Weintraub: No, total.
Vice Chairman Plummer: No, total. Is there any further questions? Is there a motion?
Commissioner Gort: You moved it.
64 August 11, 1998
Vice Chairman Plummer: Moved by...
Commissioner Gort: I move it.
Vice Chairman Plummer: Moved by Gort. Seconded by...
Commissioner Teele: Commissioner Regalado, I know, has been supporting this. Is he here? Could we
hold until he gets here? He's been...
Vice Chairman Plummer: Commissioner Regalado, we need you back in the chambers, please. Ladies and
gentlemen, this meeting is not adjourned. Mr. Regalado?
Commissioner Teele: I know you wanted to vote on the...
Vice Chairman Plummer: On the Parrot Jungle, there's a motion by Commissioner Gort to approve the
resolution. Commissioner Teele felt that your input should be noted. Do you wish to second the motion?
Commissioner Regalado: Yes, I would.
Commissioner Gort: Under discussion.
Vice Chairman Plummer: All right. Under discussion. Mr. Gort.
Commissioner Gort: My understanding is, the rental fee, once it's finished, is either the higher of the
minimum fee or percentage of sales and gross sales.
Vice Chairman Plummer: Whatever is greater.
Commissioner Gort: Which can go up to like Bayside to one or two million dollars ($2,000,000).
Ms. Weintraub: That's correct.
Vice Chairman Plummer: OK.
Commissioner Gort: OK. Make sure we put that on the record. Yes.
Vice Chairman Plummer: All in favor, say "aye."
The Commission (Collectively): Aye.
Vice Chairman Plummer: Any opposition? All right.
65 August 11, 1998
The following resolution was introduced by Commissioner Gort, who moved its adoption:
RESOLUTION NO. 98-810
A RESOLUTION, WITH ATTACHMENT, AUTHORIZING AND
DIRECTING THE CITY MANAGER TO EXECUTE THE JOINT
PARTICIPATION AGREEMENT, IN SUBSTANTIALLY THE
ATTACHED FORM, BETWEEN MIAMI-DADE COUNTY AND
CITY OF MIAMI FOR THE PARROT JUNGLE AND GARDENS OF
WATSON ISLAND, INC. SECTION 108 LOAN GUARANTEE
APPLICATION, AS AMENDED, THEREBY (i) SETTING FORTH
THE CONDITIONS UNDER WHICH THE CITY SHALL
SUBSTITUTE ITSELF AS A GUARANTOR FOR EIGHTY PERCENT
(80%) OF THE COUNTY'S SECTION 108 LOAN GUARANTEE
("COUNTY LOAN") PROVIDED IN CONNECTION WITH THE
FINANCING FOR PARROT JUNGLE AND GARDENS OF WATSON
ISLAND, INC.; (ii) CLARIFYING THE PROPORTIONATE
PAYMENT RESPONSIBILITIES OF THE CITY AND COUNTY IN
THE EVENT OF A MONETARY DEFAULT; AND (iii) CLARIFYING
THE FUNDING SOURCE FROM WHICH THE CITY WILL PAY ITS
PORTION OF A MONETARY DEFAULT UNDER THE COUNTY
LOAN
(Here follows body of resolution, omitted here and on file in the Office of the City Clerk.)
Upon being seconded by Commissioner Regalado, the resolution was passed and adopted by the
following vote:
AYES: Commissioner Wifredo Gort
Commissioner Tomas Regalado
Commissioner Joe Sanchez
Commissioner Arthur E. Teele, Jr.
Vice Chairman J.L. Plummer, Jr.
NAYS: None.
ABSENT: None.
7. VICE CHAIRMAN PLUMMER PRESENTS CITY MANAGER WITH YARDSTICKS FOR NET
OFFICES TO USE IN LOT CLEARING PROCESS.
Vice Chairman Plummer: Mr. Manager, I want to present to you... I want you to give one of these sticks to
each one of the NET (neighborhood enhancement team) offices in my district. It is 18 inches. Anything
above this in the yards ... in the weeds are violation of our ordinance and I wish for you to take care of it,
please.
66 August 11, 1998
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION,
THE MEETING WAS ADJOURNED AT 3:53 P.M.
MAYOR JOE CAROLLO
PRESIDING OFFICER
ATTEST:
Walter J. Foeman
CITY CLERK
Maria J. Argudin
ASSISTANT CITY CLERK
OP
t �a6®fop ®RATI
COMMISSIONER J.L. PLUMMER, JR.
VICE CHAIRMAN
67
August 11, 1998