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HomeMy WebLinkAboutCC 1997-05-05 MinutesINDEX MINUTES OF SPECIAL MEETING May 5, 1997 ITEM SUBJECT NO. 1. (A) COMMENTS PRIOR TO SPECIAL MEETING REGARDING ILLEGAL DUMPING WITHIN CITY LIMITS & NEED TO HAVE STRICT CODE ENFORCEMENT TO PREVENT SUCH VIOLATIONS THROUGHOUT, j INCLUDING AT FARMERS' MARKET. (B) COMMENTS BY COMMISSIONER PLUMMER REGARDING ILLEGAL SIGNS ON BANYAN TREES IN PUBLIC RIGHT-OF-WAYS (BAYSHORE DRIVE) -- FURTHER URGING NET OFFICES TO FINE OFFENDERS. 2. (A) DISCUSS / APPROVE WITH MODIFICATIONS PROPOSED FIVE YEAR FINANCIAL RECOVERY PLAN -- FURTHER REQUESTING FROM CITY MANAGER TO SEND COMMISSIONERS COPY OF MONTHLY REPORT SENT TO OVERSIGHT BOARD REGARDING FEE REVENUES. (B) DISCUSS METROPOLITAN DADE COUNTY PROPOSAL TO BUY FEC / BICENTENNIAL PROPERTY -- DIRECT CITY MANAGER TO PRESENT OPTIONS ON 5/7/97 TO PURSUE ON MARITIME (FEC / BICENTENNIAL) PROPERTY INCLUDING CITY RUNNING OWN SEAPORT -- DISCUSS ZONING CLASSIFICATION OF SAID PROPERTY -- COMMENTS BY MAYOR CAROLLO REGARDING COUNTY'S DUAL FIDUCIARY RESPONSIBILITY -- COMMISSIONER PLUMMER STRESSES NEED FOR MARITIME BOARD -- COMMISSIONER GORT COMMENTS ON PAYMENT FOR EXCLUSIVITY RIGHTS TO FEC / BICENTENNIAL PROPERTY. LEGISLATION PAGE NO. DISCUSSION 1-4 5/5/97 R 97-302 4-16 5/5/97 MINUTES OF SPECIAL MEETING OF THE CITY COMMISSION OF MIAMI, FLORIDA On the 5th day of May, 1997, the City Commission of Miami, Florida, met at its special meeting place in the City Hall, 3500 Pan American Drive, Miami, Florida in regular session. The meeting was called to order at 7:17 a.m. by Mayor Joe Carollo with the following members of the Commission found to be present: ALSO PRESENT: Mayor Joe Carollo Vice Mayor Tomas Regalado Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Edward Marquez, City Manager A. Quinn Jones, III, City Attorney Walter J. Foeman, City Clerk Maria J. Argudin, Assistant City Clerk COMMENTS PRIOR TO MEETING FORMALLY CONVENING: ---------------------------------------------------------------------------------------------------------------- 1. (A) COMMENTS PRIOR TO SPECIAL MEETING REGARDING ILLEGAL DUMPING WITHIN CITY LIMITS & NEED TO HAVE STRICT CODE ENFORCEMENT TO PREVENT SUCH VIOLATIONS THROUGHOUT, INCLUDING AT FARMERS' MARKET. (B) COMMENTS BY COMMISSIONER PLUMMER REGARDING ILLEGAL SIGNS ON BANYAN TREES IN PUBLIC RIGHT-OF- WAYS (BAYSHORE DRIVE) -- FURTHER URGING NET OFFICES TO FINE OFFENDERS. ---------------------------------------------------------------------------------------------------------------- Commissioner Gort: The other day I was going to a place with my wife, I see a forklift carrying this big box with a lot of trash. I told my wife, "he is going to illegally dump it." So, I stayed behind him, he illegally dumped it. I followed the forklift all the way to the place where the trash originated. I got down... downtown, there's not much I can do. Except, I took the address and number and called the police, trying to get a police officer over there to see if we could issue a ticket. And I don't know if my colleagues are willing to do it, but I don't mind taking whatever tests have to be taken or training, I guess some kind of sanitation because it's frustrating to catch these people. I mean, for two years I have been saying... Let's have... we May 5, 1997 know where the dumping is taking place. Let's have people there 24 hours a day. We can... five hundred dollars ($500), we can pay for those people. I mean, it's frustrating sitting there, and I understand police officers have other things to take care of, they can't respond immediately. I waited for about 25 minutes there and then I had to leave. Mr. Ron Williams (Interim Director/Solid Waste): Commissioner, also should have been able... Commissioner Gort: This was on a Saturday. Mr. Williams: Yeah. We should have been able to respond to that through one of the code enforcement officers in the NET (Neighborhood Enhancement Teams) office that was downtown. I know they have been running short of inspectors but, that... we should have been able to get a message to that group and some kind of quick response. As part of this plan, as you know, we are going to hire additional inspectors and there will be no regular work hour kind of inspections. They will be off hour or after hour, weekend kind of responses. Commissioner Gort: What are the qualifications to become an inspector? Mr. Williams: There is a... we are talking about change and let me qualify that. Right now, we have got an inspector that is doing all kinds of inspections. Be it revenue, zoning, planning. We are calling it, kind of a superinspector. What we are going to in the Solid Waste area, is a regular sanitation inspector that has training of Chapter 22 of the code. We would like in most cases those people to have come up through the Solid Waste system because of the old consent decree issue. But, those people will be trained in the enforcement of the code per Chapter 22. Commissioner Gort: Well, I think all of us should have a number where we call for different cases and get response. Because, I want to try to get the inspectors from the... to go back. Because, those people that were doing that... what they do, they hire the homeless... Mr. Williams: Sure, sure. Commissioner Gort: ... and then you come back and say "well, we didn't tell them to do this and that and so on." Mr. Williams: Sure, sure. Mr. Marquez: Commissioner. Commissioner Gort: And, we give them all kinds of breaks at the Farmers Market. Mr. Williams: I know, I know. Mr. Edward Marquez (City Manager): Commissioner. Commissioner Gort: And, they are the ones doing all the illegal dumping. Mr. Williams: At Farmers Market, as you know, we can clean it this morning, and by noon it's... So, it's an enforcement inspection issue that the Manager is committed to resources and in an effort to clean it up. Mr. Marquez: Can I...? Mayor Carollo: I was wondering, on that Farmers Market. If it wouldn't pay us to have someone there throughout most of the time? Right in that area, right there. 2 May 5, 1997 Commissioner Gort: Yeah, let me tell you what had happened Saturday, and I followed this guy in the forklift illegally dumping. He goes back into one the establishments, right there at the corner of Burger King. I am going to give it to the NET today. I stood there for 20 minutes. I called the police and all that but, there is nothing I can do. Mr. Marquez: Commissioner, I will give you my number, Bob Nachlinger's number, Aaron Weeks number and Ron Williams number. Between the four of us, at any point in time you should be able to get one of us. And, whoever gets your call... Mr. Williams: Will get a response. Mr. Marquez: ... will go get it fixed. Either through the Police Department or through NET or personally from here on out. Because, I agree with you, it's an ongoing problem. Commissioner Plummer: Unfortunately, unless we go to what happened in Ft. Lauderdale, and they tell me it made a remarkable difference, where a guy went to jail. A guy actually went to jail for dumping. And, they said that overnight suddenly people learned. Mr. Williams: Commissioner, I believe we have that ability to yield the police on it, but they have got to visualize the action itself. I mean, an officer really has to see it happen. Commissioner Gort: Let me ask you, can I he a witness? I mean, I saw the guy, I followed the guy and everything. Mr. Williams: Well, I think you can certainly be a witness on the ticket side, because clearly you knew where it came from. And, the fining portion of that, I think that could work. Because, the Manager, I think was mentioning we should be able to fine that person after the fact. I think the arrest side of it though has to actually be witnessed by an officer, is my understanding. Commissioner Gort: What's this I hear about citizen arrest? Does that exist, or what? Commissioner Plummer: No. Felony. Felony only. Commissioner Gort: On felony, only? Commissioner Plummer: Let me ask a question in a similar vein. Mr. Manager, as I drive around and I see, and especially this morning, it really ticked me off. All of these Banyan trees, right here on South Bayshore Drive, people have taken and nailed signs into those trees. Some yellow, I can't even read it. But, it's a yellow sheet of paper and they have nailed it into the trees. Now, you know, if nothing more can't we take the address and phone number off of those and start writing tickets predicated on those signs up there? I mean, Herb Life, this Herb Life is everywhere. Everywhere you turn there are those signs. It would seem like to me, that the NET offices could take either the phone number of the address, write tickets to those people, and that will stop it when they start seventy-five dollars ($75) a sign. But, these out here this morning irritated me. They are a yellow piece of paper starting at 27th Avenue, you come right down all the way. Mayor Carollo: OK, gentlemen. Commissioner Plummer: Let's do it. END OF DISCUSSION -- NO ACTION TAKEN 3 May 5, 1997 Mayor Carollo: Let's stand up and say the innovation please? Commissioner Hernandez, if you could lead us in prayer, please. NOTE FOR THE RECORD: At this point, the City Commission meeting officially convened, An invocation was delivered by Commissioner Hernandez, after which Mayor Carollo led those present in a pledge of allegiance to the flag. 2. (A) DISCUSS / APPROVE WITH MODIFICATIONS PROPOSED FIVE YEAR FINANCIAL RECOVERY PLAN -- FURTHER REQUESTING FROM CITY MANAGER TO SEND COMMISSIONERS COPY OF MONTHLY REPORT SENT TO OVERSIGHT BOARD REGARDING FEE REVENUES. (B) DISCUSS METROPOLITAN DADE COUNTY PROPOSAL TO BUY FEC / BICENTENNIAL PROPERTY -- DIRECT CITY MANAGER TO PRESENT OPTIONS ON 5/7/97 TO PURSUE ON MARITIME (FEC / BICENTENNIAL) PROPERTY INCLUDING CITY RUNNING OWN SEAPORT -- DISCUSS ZONING CLASSIFICATION OF SAID PROPERTY -- COMMENTS BY MAYOR CAROLLO REGARDING COUNTY'S DUAL FIDUCIARY RESPONSIBILITY -- COMMISSIONER PLUMMER STRESSES NEED FOR MARITIME BOARD -- COMMISSIONER GORT COMMENTS ON PAYMENT FOR EXCLUSIVITY RIGHTS TO FEC / BICENTENNIAL PROPERTY. Commissioner Plummer: Mr. Mayor, should we start off this morning by saying "Thank God, for the Heat!" They did great. Mayor Carollo: They sure did. Commissioner Gort: I hope they continue to do good. Commissioner Plummer: They did great. We'll pray for them for Wednesday night. Mayor Carollo: Uh-huh. Mr. Manager, would you like to begin? Mr. Edward Marquez (City Manager): Mr. Mayor, what you have before you is a set of modifications to the five year plan which the administration is requesting that the Commission adopt as an amendment to the five year plan. The modifications come in three categories. There is editing modifications, there is new pages and sections and there is deletions from the plan. And, I am going to highlight the major areas here. Within the historical perspective section, and we have inserted the full section in each one of these so that you can really just insert it back into the hook. Where we modified the language there to reflect the year end of September 30, 1996 deficit position. At that point in time we, the general fund, which is now the way we are reconfiguring it, all of our operations, including all our enterprise funds, except for the convention... Knight Center, had a deficit position of forty-four million dollars ($44,000,000) 4 May 5, 1997 negative as a fund balance. That's the unreserved fund balance. It's a hefty number that's been built up over time. Of that, eighteen million dollars ($18,000,000) represents negative cash. Or else... in other words a borrowing from other funds. The good news to that is that with the 1997 plan that you have adopted previously, and the five year plan that we have got in here, we will be working ourselves out of that hole through the five year period of time. The comparison of Miami section has just been modified to explain some problems between... problems inherent in comparing cities. And, in the restoring the excess to the credit markets area, we talked in terms of designating a person to work with the... specifically to work the grading agencies. The reorganization plan was reconfigured to show the Department of Internal Audit to be answerable directly to the City Manager as opposed to an ACM (Acting City Manager) for added importance. Major, other major areas of the plan changes is basically... If I can take you to Exhibit 1, which is the chart. And, I'll just run through those major items that we have. It's... Commissioner Plummer: Page numbers. Mr. Marquez: Unfortunately, we didn't page this. It's right before the Investment Policy. Commissioner Plummer: I have page numbers. What's the page? Mr. Marquez: There are different page numbers. We did not page this thing throughout from start to finish. It's the five year one page summary. Start from the back, it's about... Mr. A. Quinn Jones, III, Esq. (City Attorney): Is it after page 102? Mr. Marquez: It's after page 102, if you can find that. Commissioner Plummer: OK. Mr. Marquez: OK. The first subtotal you see here are estimating conferences, i.e., the Oversight Board's blessed numbers as to how we look like going out into the future. This has changed since the original five year plan because we were able to convince them of certain adjustments that needed to be made such as interest earnings out there. Attrition was conservatively figured. So, those numbers have been adjusted to... have been adjusted downward to our favor. The following sections are budget solutions that we have been talking about. We have talked about the fire assessment fee previously. We have changed those numbers slightly to incorporate to improve collections that would occur once we shift into a tax bill. A high impact usage fee. This is a concept where we will be charging those tax exempt entities that overuse our fire service, fire rescue service. If they have five calls or more, we will charge them on a case by case basis. It is also charging people for non -address specific locations. Going forward, we anticipate an ordinance being implemented sometime in 1998, and that's why you see a smaller number there going forward. We have talked about eliminating the fire inspection fee, you have seen the land sales. Those are three land sales. Management recovery expense is the hiring of mid -management positions throughout the City. Pension administrative costs is the staffing. I am just going to go down to the new items that we did not include in the first plan. Curb side and trash pickup. This is the elimination of the recycling and shifting to the once a month collection. The next new item is the major league soccer. Negotiations are going very well, I understand and eight hundred and fifty thousand dollars ($850,000) is a decent number, a conservative going forward. Citywide efficiencies, by 1999, we anticipate being able to recognize some benefit from having a purchasing department broken up... separately and apart of conducting all bids for the City on a competitive basis. And, other efficiencies that we will identify. The Solid Waste efficiency number is a comparison. In the five year plan we had input from the private sector where if we were to privatize, the minimum amount of savings we would have is one point one million dollars ($1,100,000). The range was from one point one to two point four million dollars ($2,400,000) in the plan. We have discussed with the unions and 5 May 5, 1997 we are working with them to see if they can come up with a competing offer for the private... to the private sector. So, we are committing to a one point one million dollar ($1,100,000) savings going forward. Parking revenues and docking fees. These are contracts that we hope to have brought before the City Commission in the next six months so that we can generate some parking revenues, the dockage fee revenues over at Virginia Key and Watson Island respectively. Future lease revenues. This includes... the major portion of this is the development of downtown properties including the FEC (Florida East Coast) Bicentennial, the Bayside parking lot. We figure these things will be into place no later than fiscal year, 1999. And, then within the plan itself, we discussed the Convention Center as the Knight Center as doing something with that property so we can get out of that debt service and free up about five million dollars ($5,000,000) worth of debt service per year. We have also discussed the possible privatization of the parking system. Those two projects will take a lot of work. I am comfortable that we can generate the savings that we are saying here of seven point nine, by the year 2000. Hopefully, much sooner than that. The rest of the items are reserves going on into the future. The working capital is what's required by the Oversight Board. The contingency reserve is just a... it's a rainy day fund for us to spend on for pure emergencies. Risk Management reserves was lowered from the previous five year plan by four hundred thousand per year. That's a build up to handle any unforeseen hits to our self-insurance fund. And, then j we built here a reserve for future year deficits. This is squirreling away money today to handle a deficit out into the future. This also, by putting this cash aside, we are also going to earning interest earnings on that principal which is brought back into these estimates. That is the financial aspect of the plan. We do have... Commissioner Plummer: OK, can we go back and ask questions on this? Mr. Marquez: Oh, absolutely. Commissioner Plummer: I mean, keeping in mind that a budget is projections, they are not in stone. And, I look at some of these numbers and I have to sit back and start thinking. When you start talking about parking revenues on Virginia Key, tell me what do you mean by that? Because, I mean, I don't know Virginia Key... I would hate to believe that that is a big parking lot, our Waterfront property. Mr. Jack Luft (Director Planning and Development): No, sir. Commissioner Plummer: What is it? Is it for the Lipton, is that what you are talking about? Mr. Luft: Partly, it would be in the vicinity of the treatment... Commissioner Plummer: On the other hand, we are talking about the developing Virginia Key. Mr. Luft: No, we are not talking about parking on any of the shoreline developable lands. In the vicinity of the landfill, around the edges of the treatment plant, there are basically unutilized parcels that are frankly, not developable, but which we can put parking on for which we have been approached to see if we can accommodate some additional off -site parking. Commissioner Plummer: And... Mr. Luft: We will bring that back to you, May 22nd. Commissioner Plummer: OK, I just, you know, I am looking at this and then you make the statement, Mr. Manager, that the parking system privatization would be difficult or long term. My understanding it's just go out to an RFP (Request for Proposals), am I correct? 6 May 5, 1997 Mr. Edward Marquez (City Manager): No, sir... Commissioner Plummer: OK. Mr. Marquez: We... It's never, ever that easy. You have got... We want to be able to maximize the use of our assets. We can go out on an RFP and get bids right now for a concept and that's concept... one of the concepts that is listed in the five year plan now. We want to make sure that we are doing this right and we want to contrast this against our other options and there might be some tie ends. Basically, I structured this so that we can get the benefit out, and out here to give us the flexibility of time to analyze this and do it the right way the first time through. We will be working on it. If it becomes evident that this is the way to maximize our... these type of assets within the next six months, we will move forward with an RFP within the six months. Commissioner Plummer: Well, my point... Mr. Marquez: But, I... it takes time to do it right. Commissioner Plummer: The point that I am making is, at this present time, we get nothing from Off-street Parking. Mr. Marquez: Correct. Commissioner Plummer: Zero. Now, unless the people that came to talk to me are completely fabricating a story, they were going to pay off the bonds, they were going to give us the eight million surplus and negotiate a yearly fee. Now, where is that negative? Mr. Marquez: All right. Commissioner Plummer: To me, we are going to be getting something. We don't have a damn thing, we don't have nothing right now. Mr. Marquez: That's... It's not negative. What... it may not be optimal, is the issue. Those proposals may be talking about the monthly fees, the return of... is a return to them plus a management fee. The return to them may be 25 percent, whereas we may be able to do something else with the debt on that property so that we are paying out a much lower interest rate to maximize the return that we will have from the use of that asset. Conversely... Commissioner Plummer: What's the interest...? Excuse me, what's the interest rate, if they are paying off the bonds? Mr. Marquez: Excuse me? Commissioner Plummer: They are paying off the bonds, what is the interest rate on it? Mr. Marquez: They paying debt service off on those bonds but they are paying it on a taxable rate. We may be able to do something through the Off-street Parking to do it on a tax exempt rate. And, therefore, take out the debt with a much lower level of debt service. That's number one. Number two, is that there is a possibility that we can merge the two concepts together so that we can maximize the impact of both. All I am saying here is, that it's not as easy as going out with an RFP next month. We need time to analyze our options. And, that time I figure is going to be six to a nine month period of time. I am just being practical here. I mean, we can go ahead and try steamroll and give it direction, but we may be shooting ourselves in the foot. Mayor Carollo: Commissioner, in essence what the Manager is trying to say, I think is, that we have different options that we have open on this issue. And, what you are saying is part of what 7 May 5, 1997 is available. Now, I think the positive side is, that he is estimating this to happen in the year 2000. It could happen within a year. So, that makes our numbers even better. Commissioner Plummer: Well, Joe, my problem is, we are doing an awful lot of talking. And, we are doing an awful lot of suggestions and projections. But, when I think back over the time where we raised the fees, and where we are today, the numbers that were projected are not becoming realistic. At least, not to what I am aware of. And, that's what's bothering me. Mayor Carollo: Which number is that? Commissioner Plummer: Well, you know, the task force for example. Going out here and finding these fees. I think that was to raise one million and a half dollars ($1,500,000). Mayor Carollo: It's raising it. Commissioner Hernandez: It's raising one point seven. Mayor Carollo: It's raising more. Commissioner Plummer: Well, it hasn't raised as far as what I am... what I know, by virtue of the fact of these masters hearings. I am concerned... I mean, I am just concerned that we are not getting, if these monies are being raised, I am not being made aware of it, OK. All I am getting back is a feedback that says, "Where is the money coming in?" And, so I guess, really what I am asking is, if the information I have got is not correct, then Mr. Manager, you need to give us an assessment paper of saying, "Hey, we put in this fee and we have got this much money to date, and we are still projecting this or we are not." And, I think that's one of the things that I have got a problem with. Mr. Marquez: I think what we need to do is go ahead and communicate better to the Commission the actual monthly reports. We are doing a monthly comparison of budget actual. As of last month, we were pretty much on target on everything except for land sales. Land sales, we anticipate a big chunk of land sales occurring at the very tail end of this fiscal year. And, that's to us, is the big unknown. Whether or not we are going to hit those right on time. But, the... as far as everything else, it's more or less going according to plan. We will do a better job on communicating. That's obvious that we need to do that. Commissioner Gort: My understanding is, you have to report every month to the Oversight Board. Mr. Marquez: Yeah, we get grilled every month. Commissioner Gort: Do we get a copy of that? Mr. Marquez: Ah, yes, I believe so. Commissioner Plummer: Joe, let me ask a question since I was out of town. Is there anything new on the FEC? Because as far I know, it was over May 1. Mayor Carollo: That is correct, Commissioner, that was the resolution this Commission made. As you must have read when you came back, there was a proposal that was given to us which each of you was sent a copy, after 5:00 p.m. on Wednesday, that gave us less than 48 hours to respond... Commissioner Plummer: Oh... May 5, 1997 Mayor Carollo: ... if we were interested. Commissioner Plummer: They have been two years and now they are giving us 48 hours, isn't that nice? Mayor Carollo: ... and otherwise the offer would be null and void. Therefore, there is no offer on the table because I didn't sign anything, because I felt that this was something that the Commission as a whole needed to say "yeah" or "nay" on. And furthermore, I personally did not agree with the offer that was made. It was an offer they knew was way below anything that we have requested and it was for a sale not for a lease. Commissioner Plummer: Well, you know, I don't think there was any question that we sent you there as our chief negotiator with a set of criteria. And, I mean, unless that changed, the criteria was very simple, no less than 121 and for them to offer less, I think was a joke. The Maritime Board was mandatory and the third item was May the 1st and no more extensions. So, now I guess, you know, again, where are we and what are going to do about that parcel of property? Mayor Carollo: Well... Commissioner Plummer: Are we going to put it up for sale? Mayor Carollo: Where we are at, Commissioner, if I remember correctly, the statements that were made by this Commission was... And, let's go back in time. Commissioner Plummer: Sure. Mayor Carollo: We had given a pretty long period to discuss this. When that period came up, the Commission wanted to extend it for 15 days at my request, but I suggested that instead of 15 days, it should be 30 days. Commissioner Plummer: I remember. Mayor Carollo: And, the Commission agreed to that. That was the May 1st deadline. Commissioner Plummer: Only predicated on no further extensions. Mayor Carollo: Yeah. Prior to that, the statements that were made here on the Commission was that, and you made most of them. Was that if by May 1st, we did not have an agreement in hand that was acceptable to us, then staff was supposed to go out and start doing proposals and it's up to this Commission whether it still wants staff to do that, to put it up for an RFP, to look at the best use for that property, see what proposals, what ideas that might be out there. It will be up to the Commission if it still wants to follow that route. Commissioner Plummer: I think that it would be appropriate, Mr. Manager, on Wednesday - which is our Commission meeting this week, right? - that you come back with a menu giving us a list of options of which way you think we can and would be feasible to pursue. I have to honestly believe that that happens to be one of the most valuable pieces of property which we have. It is probably one of the most important sources of revenue that we are looking at. And, to sit back and to let the County insult the Mayor, which insulted this Commission, by offering something that was totally inappropriate, I think we need to do something. Because, obviously they don't want to do anything but to try and to take our property without giving us compensation. So, I would hope that on Wednesday, you would come back, Mr. Manager. I always liked the idea of the City going into the port business. It is a revenue source that I think 9 May 5, 1997 is worth exploring and take it from there. But, I just... I guess, what I am really saying is, is that we just can't sit back and wait. We have got to move forward and we have got to get this revenue, whether it's from the County or from a port operation or whatever it is. We have got to move Forward. So, I would hope on Wednesday, that you would come back and my colleagues, we can discuss it and do something. Commissioner Gort: Mr. Mayor, let me ask you a question. The letter that I read, my understanding was the whole plan and proposal was figured that the property value in downtown Miami had dropped by ten percent. As I recall that I read that in the first paragraph and that's the reason for their offer. Now, my understanding is, the First Union building was sold for two hundred and seven million dollars ($207,000,000). My understanding is, all the sales that they can place, and I am not an real estate expert. I need somebody to let me know. My understanding is, property values goes in accordance to the sales... Commissioner Plummer: Comparable. Commissioner Gort: ... that take place for the last year or two years. Am I correct on that? Commissioner Plummer: Comparable. Commissioner Gort: Because we need to... Mr. Luft: Property values are varied depending on which level of property you are looking at. In the westerly of the Boulevard, there has been a decline in values. We have seen that, that what hurt the Park West area. On the Boulevard we are now seeing property sales as of January and February in the sixty dollar ($60) a square foot range, and they have rebounded. The County claims they have done comparables comparing market values for the Bayside property and for the Miami Herald property and have come with a range of one point one million to one point eight million dollars ($1,800,000) an acre. The one point eight million an acre for this particular property would yield in the neighborhood of one hundred million dollars ($100,000,000). So, that's the range somewhere between sixty and one hundred million that the County thinks they have a comparable on. The difficulty with that is that... In fact, the Park and Recreation zoning and the master plan that you are operating under, allows you a great deal more latitude than the C-1 zoning that they are comparing it to. In the C-1 zoning you cannot build an arena, for instance. The Park and Recreation Zoning is what you find to be in public purpose, in the interest of the community to serve that public need. So, you have a tremendous latitude to develop a variety of uses, of densities. There is no density limitation, that whatever you see fit. C-1 is a much different category and would not be comparable at all. So, I don't think the County really has a comparable to compare it to. Although, they are suggesting so. Commissioner Plummer: The only thing I am saying is, that we can't sit around and wait. I think we have got to move. If we move with the County, would be the most ideal thing. But, after two years of ongoing negotiations we have not come to a successful conclusion. I think the only conclusion we can come to is, we have got to do something else. Mayor Carollo: Well, Commissioner, sometimes you might be right in what you are saying. The best way to see how much the City can really get for their property on a lease is by putting it on the market and seeing how many people there might be. And I guarantee you, this is one property that you will get interest, not only nationwide but internationally. You will get proposals from dozens of corporations and we... Commissioner Plummer: The problem, Joe, there is we would have to, before we go out, we would have to change the zoning. And, what zoning would we change it to would be a great criteria as to what the amount of an offer would be. Under, with the present zoning, you know, you really not going to he using it by anything other than government. But, we did it that way. 10 May 5, 1997 Mayor Carollo: No, no. Explain Jack. That's just not so. We have much more latitude with this zoning. Commissioner Plummer: Parks and Recreation? Mr. Luft: Yes. Commissioner Plummer: What can commercial people do with that kind of property? You can't build an office building. You can't build a hotel. Mr. Luft: Offices could be built ancillary to the primary use. If you wanted to do a destination entertainment center that had an office component. Commissioner Plummer: Yeah, but you are very limited, Jack. Mr. Luft: Well, Parrot Jungle was built under Park and Recreation zoning. Commissioner Plummer: But, Jack, I am saying when you... Mr. Luft: They have amphitheaters and... Commissioner Plummer: ... if you had it C-1 or C-2 or C-3, people know exactly what they can do with it, OK? Mayor Carollo: The difference is in our Parks and Recreation zoning, it's completely different than Parks and Recreation and Dade County Zoning. In fact, it's frankly misleading in what we call Parks and Recreation. Our Parks and Recreation is one of the widest type of zoning that we could possibly have that would include all kinds of commercial. And, beyond the typical commercial that you could have, as Jack has said, in C-1. So by keeping it under this type of zoning it can maximize the return for us in any request for proposal that we would make because the options that people can have on projects are so much wider than if we would have it just strictly C-1. But, can you confirm what I am saying, Jack? Maybe, you could explain it even better than I have. Mr. Luft: Yes, the Commission has already established the policy of seeking a major complex of retail destination entertainment maritime activities, cruise and excursion ships on this site. All of that is well within the parameters of Park and Recreation zoning. Because you have made a finding of public purpose for those activities and in relationship of those to the downtown's need for a major destination center to complement Bayside. You literally can define what the public purpose is, and then build a set of activities around that within this zoning. You would in fact be restricting yourself in a number of ways if you were to go to a C-1 or a C-2 zoning. Commissioner Gort: Mr. Mayor, why don't we let the Manager come back and bring some ideas and... Do you need a motion on this five year plan or...? Mayor Carollo: Yes, we do need a motion on the five year plan, absolutely. Commissioner Gort: I so move. Mayor Carollo: Yeah. There is a motion on the five year plan. Commissioner Plummer: I'll second the motion, Mr. Mayor, predicated on the fact that my understanding of a budget is projections. It is not cast in stone. It will be a moving and 11 May 5, 1997 workable document for the next five years, and take it from there. So, with that full understanding, I second the motion. Mayor Carollo: Everybody understand that, including the board. They know that there is going to be changes. Commissioner Plummer: I hope they do. Because, you know, we don't know, because they never invite us to a meeting. Mayor Carollo: And, hopefully the changes will be a lot more positive as we go on. That, I am sure, will be the case. They will be bringing additional more revenue as time goes on, than what we even have here. Commissioner Plummer: Fine. Mayor Carollo: OK, there is a motion, there is a second. Mr. Manager, on page 99, the bottom future lease revenues, the last sentence in the bottom page 99. Commissioner Plummer: What is it, Joe, you are talking about? Mayor Carollo: I would like to change one word here. Mr. Marquez: Yes, sir. Mayor Carollo: "Additionally it is anticipated that the City will receive a minimum of four million in the fiscal year of 1999." Commissioner Plummer: Where are you...? Mr. Marquez: Page 99. Mayor Carollo: Ninety-nine, all the way at the bottom, the last sentence. Commissioner Plummer: "The City..." Mayor Carollo: "Will receive a minimum of four million in the fiscal of 1999 and onward from the FEC Bicentennial lease for the new downtown Maritime project." I would like change, instead of saying from the FEC Bicentennial lease for the new downtown Maritime project." "For a new downtown Maritime project." I don't want to give anyone the impression that we are limiting our options to one project and I think if we would change the wording and take the "the" away and put "for a new" that would make it a lot clearer that we are talking about a new project, not necessarily the project. Mr. Marquez: All right. And, you are also emphasizing... Mayor Carollo: Am I correct in that, Mr. City Attorney? Mr. Jones: No problem with it. Mayor Carollo: OK. Mr. Marquez: And you are also emphasizing that it's going to be a lease. Mayor Carollo: Of course. Well, it's clearly here that it says lease. 12 May 5, 1997 Commissioner Hernandez: Mr. Mayor. Mayor Carollo: Yes, Commissioner. Mayor Carollo: Subsequent to receiving the offer that the County made on Friday, on Thursday. I met with some of the Mayor's staff, Mayor Penelas' staff. I find that there is a lot of room to move over there. I find that... I spoke to them for a while. They seemed to be flexible in a lot of issues that we are concerned with and maybe we have lost in the negotiations some translations between their team and our team. For example, I think they have no problem with leasing the property. They expressed to me that they would love to own the property and buy the property outright. But, if it would be... if it come down to a lease versus no deal whatsoever, they had no problem with working a lease with the City of Miami. I met with them Friday, I met with them Sunday and, I have no problem going to an RFP procedure. But, I think that this is part of negotiations. They are trying to get the best deal for the piece of land and we are trying to get top dollar. Mayor Carollo: Yeah, but, but... Commissioner Plummer: That's right. Mayor Carollo: Let me say this. And, we are losing track of this, I think. Dade County government has dual fiduciary responsibility: they also represent us. We also pay some seventy-five million dollars ($75,000,000) or more a year in taxes to them. So, frankly, I have a problem when I hear that they are trying to get the best deal for them. Because, they have a right to also represent us and make sure that they deal with us fairly. Commissioner Hernandez: Well, there is that at least four Commissioners that overlap... Commissioner Plummer: Yeah, Commissioner Hernandez: ... within the City of Miami. Commissioner Plummer: But... Commissioner Hernandez: I think, first of all, and let me ask this, because I know you... we have appointed you as the chief negotiator of this. I would like to be given an opportunity to sit down a little bit further with them. If we go with the RFP process. But, we have gone too far to just turn off all negotiations with them. Mayor Carollo: No, we haven't said that at all, Commissioner. I think what has been expressed here by some here, was expressed in the past is, that we are going to be moving forward. They certainly can come back to us and express to us anything else they would like to offer to this Commission. But the bottom line is, that what you are telling me is exactly what I thought I understood before, but what we got was an offer of take it or leave it in less than 48 hours for a buy. Commissioner Plummer: Yeah, but... Commissioner Hernandez: I don't think that's the situation, Mr. Mayor. Commissioner Plummer: There is another issue. Money is not the only issue. There was a thing called a Maritime Board. And, that Maritime Board was to set how that property would be developed. They don't want a Maritime Board. They are saying they are going to throw a 13 May 5, 1997 Maritime Board out. They are saying, already, they have had meetings, they have had public hearings of what they are going to do with property they don't own. And, I have got a problem with that. Mayor Carollo: Well, not only that. But, does anybody here really know? Can anybody here tell me what is actually going to be built there? How many square feet of commercial space? What else is going to be built there? Commissioner Plummer: I don't know. Mayor Carollo: None of us know. Commissioner Plummer: All I hear is an argument, how many ships are going to be docked there: two, three or four. That's all I have heard an argument about. Commissioner Gort: Mr. Mayor, a point of order. I think that we are discussing the five year plan. Can we vote on it, and then if we want to, we can continue to discuss the other thing. Mayor Carollo: Sure, all right. Commissioner Gort: Now, my understanding is, I am not an expert on real estate. But, my understanding is, if you are going exclusive on a property, you pay for that exclusivity. And that's all we have been doing. We gave them exclusive for two years now. Commissioner Plummer: Supply and demand. Commissioner Gort: They haven't paid anything for that right. Frankly, we are not saying we are not going to deal with them. We want to deal with them. We want to see the... Commissioner Plummer: They don't want to deal with us. Commissioner Gort: Can you call the question... Mayor Carollo: Let me ask the clerk to call the roll on the question of approving the five year plan with the amendments that were made. 14 May 5, 1997 The following resolution was introduced by Commissioner Gort, who moved its adoption: RESOLUTION NO. 97-302 A RESOLUTION WITH ATTACHMENT(S), ADOPTING CERTAIN MODIFICATIONS TO THE "CITY OF MIAMI FIVE YEAR PLAN", DATED APRIL 15, 1997, SAID MODIFICATIONS SET FORTH IN THE ATTACHMENT, ATTACHED HERETO AND MADE A PART HEREOF; FURTHER AUTHORIZING THE CITY MANAGER TO MAKE ANY AND ALL NONSUBSTANTIVE CHANGES TO SAID PLAN NECESSARY FOR THE REPRINTING OF SAID PLAN. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Commissioner Plummer, the resolution was passed and adopted by the following vote: ! AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: None. Commissioner Plummer: Mr. Mayor, will you give my regrets at the radio program, please? I'll not be there. I am going to work. Vice Mayor Regalado: We are going to work, too. Commissioner Plummer: Yeah. Mayor Carollo: OK. Mr. Marquez: Mr. Mayor. Just back on the FEC Bicentennial property, for one second. The County on tomorrow will have public... the second reading of an ordinance to do away with the Maritime Board. I need direction. Commissioner Plummer: Yeah. Mayor Carollo: Well, I... Commissioner Plummer: It's amazing. Mayor Carollo: Commissioner, would you like to he appointed to go before them to speak on that... Commissioner Plummer: No. Mayor Carollo: ... if you would like or...? 15 May 5, 1997 Commissioner Plummer: No, not at all. As far as I am concerned, May the 1st, it was a dead item. Now, they had... they gave us 48 hours. As far as I am concerned we gave them two years and plus. And, as far as I am concerned, no. I don't think there is any reason to go talk to them because they are not going to come up. They know... look, no less than. No less than, is what we said. And, we were very emphatic, Joe. Mayor Carollo: All right, gentlemen. Anything else that needs to be brought on this item could be brought up on Wednesday. Thank you. Commissioner Plummer: We'll see you Wednesday morning. What time do we meet Wednesday morning, eight thirty? Commissioner Gort: Six o'clock in the morning. Commissioner Plummer: Six o'clock, that's even better. Mayor Carollo: Eight. All right, thank you. This meeting is adjourned. THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION, THE MEETING WAS ADJOURNED AT 7:54 P.M. ATTEST: Walter J. Foeman CITY CLERK Maria J. Argudin ASSISTANT CITY CLERK JOE CAROLLO MAYOR (SEAL) 16 May 5, 1997