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Home My WebLink AboutR-97-0297J-97-244 4/14/97 RESOLUTION NO. 9 7 2 9 7 A RESOLUTION, WITH ATTACHMENT (S), ACCEPTING THE "CITY OF MIAMI FIVE YEAR PLAN", DATED APRIL 15, 1997, ATTACHED HERETO AND INCORPORATED HEREIN. WHEREAS, pursuant to the Intergovernmental Cooperation Agreement, dated December 23, 1996, by and among the Governor of the State of Florida, the Financial Emergency Oversight Board and the City of Miami, the City has prepared the "City of Miami Five Year Plan"; and WHEREAS, said Plan addresses budgets, revenue and expense projections and cash flows and the Operational Recovery Plan which has been developed to (1) return the City of Miami to fiscal health and (2) set goals and objectives so that the City can conduct the business of government in a professional business -like manner; and WHEREAS, pursuant to directives received by the City Commission on this date, the Plan reflects (1) a reduction in the proposed Net Fire Assessment in the amount of $6 Million and (2) changes in the FY 1998 Budget proposals, in the amount of $6 Million, concerning condo vouchers, curbside recycling, trash pick-up, management recovery, computer acquisitions, a time and attendance system and police headquarters renovations; ATTACHMENT (S) COWTAIE�E® CITY COMMISSION MEETING OF APR 1 4 1997 Resolution No. y7- 297 NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference hereto and incorporated herein as if fully set forth in this i Section. i Section 2. The "City of Miami Five Year Plan", dated I April 15, 1997, attached hereto and incorporated herein, is i hereby accepted. Section 3. This Resolution shall become effective i immediately upon its adoption. 1 PASSED AND ADOPTED this 14th day of _ April 1997. i i j ,/ E CAROLLO, MAYOR i ATTEST: j WALTER J. EMAN i CITY CLERK APPROVED AS TO FORM AND CORRECTNESS: BSS:W1546 - 2 - 9!- 297 Proposed Changes to Five Year Plan A. Reduce Net Fire Assessment by: $6,000,000 (see Exhibit 1) B. Modify FY 1998 Budget as follows: Eliminate Condo Vouchers $3,000,000 Elimin ite Curbside Recycling 817,000 Modify Trash Picic=up (Effective 1/01/98) 487,000 Reduce Management Recovery 576,000 Defer Computer Acquisitions (1/2) 250,000 Defer Time and Attendance System 470,000 Defer Police Headquarters Renovations 400,000 $6,000.000 C. Commit to the following: 1. Continue negotiating with Major League Soccer for 10 Year use agreement regarding Orange Bowl; 2. Implement "High Use" impact fee ordinance for non -assessed properties regarding Fire -Rescue service; and 3. Use revenues from above to fund reductions related to the management recovery and capital asset deferrals. 97- 297 Exhibit 1 Fire Assessment Fee Original Modified Description Plan Plan Difference Gross Billing $38,500,000 $30,935,000 ($7,565,000) Less Non -Collected Tax Exempts ($5,812,000) ($4,770,000) $1,042,000 Net Assessment _ $32,688,000 $26,165,000 ($6,523,000) Collection at 92% $30,072,960 $24,071,800 ($6,001,160) Rate Impact Single Family - 80,426 Units $165.67 Multi Family - 49,940 Units $198.93 Public Housing -3,998 Units $590,35 Commercial -5,860 Buildings Max of $.13 Sq. Ft. $130 to $64,865 Industrial -1,631 Buildings Max of $.043 Sq. Ft. $43 to $21,399 Institutional -1,471 Buildings Max of $.158 Sq. Ft. $158 to $79,025 $132.61 $159.24 $472.56 Max of $.104 Sq. Ft. $104 to $51,924 Max of $.034 Sq. Ft. $34 to $17,129 Max of $.127 Sq. Ft. $127 to $63,258 ($33.06) ($39.69) ($117.79) ($.026 Sq. Ft.) ($26 to $12,941) ($.009 Sq. Ft.) ($9 to $4,270) ($.031 Sq. Ft.) ($31 to $15,767) „CITY OF MIAMI PRELIMINARY RATEIF $30,818,812 BUILDING RATE/ NAME _TIER DESCRIPTION I COUNT _ BUILDING_ _ _CATEGORY RESIDENTIAL !AII 80,426 $�` 132.61 MULTI -FAMILY �AII 49,940 $� 159.24 _ ” �AII -�--- 3,998 $ 472.56 PUBLIC HOUSING .19 RATECALCFINAL.xis Page 1 4/14/973:55 PM 9'7- 297 CITY OF MIAMI PRELIMINARY RATEF ' $30,818,812 BUILDING RATE/ CATEGORY NAME TIER DESCRIPTION 1 COUNT BUILDING COMMERCIAL _ _COMMERCIAL _ I< 1,999 2,012 ! $ 104 2,000-_3,499 1,235 I $ 208 _ COMMERCIAL _ 13,500 - 4,999 729 5,000 - 9,999 - 980 - 466 _ I $ 363 COMMERCIAL l $ _ _519 $ - 11038 _ COMMERCIAL - �10,000-19,999 COMMERCIAL 20,000 - 29,999 113 $ 2,077 _COMMERCIAL _ 130,000 - 39,999 71 j $ - 3,115 - _ _ COMMERCIAL _ _ 1440,000-_49,99936 4,154 COMMERCIAL -__ _ _ '50,000 - 59,999 - _ -- 30 _$ I $ COMMERCIAL 160,000 - 69,999 21 _5,192 $ 6,231 COMMERCIAL 70,000 - 79,999 12 $ 7,269 COMMERCIAL _ 80,000 - 89,999 15 $ 8,308 COMMERCIAL 90,000 - 99,999 ! l 1 $ 9,346 COMMERCIAL 100,000 - 124,999 18 $ 10,385 COMMERCIAL 1125,000 - 149,999 15 $ 12,981 COMMERCIAL 150,000 - 174,999 20 $ 15,577 COMMERCIAL 175,000 - 199,999 11 $ 18,173 COMMERCIAL 200,000 - 224,999 6 $ 20,770 COMMERCIAL 225,000 - 249,999 10 $ 23,366 COMMERCIAL 250.000 - 274,999 7 $ 25,962 COMMERCIAL 275,000 - 299,999 4 $ 28,558 COMMERCIAL 300,000 - 349,999 9 $ 31,154 COMMERCIAL 350,000 - 399,999 5 $ 36,347 COMMERCIAL 1400,000 - 449,999 6 $ 41,539 COMMERCIAL 1450,000 - 499,999 1 $ 46,732 COMMERCIAL I> 500,000 17 $ 51,924 RATECALCFINAL.xls Page 2 4/14/973:55 PM 97- 297 1CITY OF MIAMI PRELIMINARY RATES $30,818,812 CATEGORY NAME _TIER DESCRIPTION BUILDING RATE/ COUNT �_ BUILDING INDUSTRIAL(WAREHOUSE INDUSTRIAL(WAREHOUSE < 1,999 j 2,000 - 3,499 221 j $_ _ _ 34 183 $ 69 INDUSTRIAL/WAREHOUSE 3,500 - 4,999 252 i $ _ 120 INDUSTRIAL/WAREHOUSE 5,000 - 9,999 489 $ 171 INDUSTRIAL/WAREHOUSE 10,000 - 19,999 300 I $ 343 INDUSTRIAL/WAREHOUSE 20,000 - 29,999 103 j $ _ 685 INDUSTRIALMAREHOUSE 30,000 - 39,999 _ 40 $ _ 1,0_28 INDUSTRIALIWAREHOUSE 40,000 - 49,999 13 j $ _ 1,370 INDUSTRIAL/WAREHOUSE 50,000 - 59,999 13 ; $ 1,713 INDUSTRIALIWAREHOUSE 60,000 - 69,999 5 $ _ 2,056 INDUSTRIALMAREHOUSE 70,000 - 79,999 3 $ 2,398 INDUSTRIAL/WAREHOUSE 80,000 - 89,999 3 $ 2,741 INDUSTRIAL/WAREHOUSE 90,000 - 99,999 1 $ 3,083 INDUSTRIAL/WAREHOUSE 100,000 - 124,999 2 $ 3,426 INDUSTRIALMAREHOUSE 125,000 - 149,999 2 $ 4,282 INDUSTRIAL/WAREHOUSE 150,000 - 174,999 - I $ 5,139 INDUSTRIAL/WAREHOUSE ; 175,000 - 199,999 1 $ 5,995 INDUSTRIALIWAREHOUSE 200,000 - 224,999 - $ 6,852 INDUSTRIAL/WAREHOUSE 225,000 - 249,999 - $ 7,708 INDUSTRIALIWAREHOUSE 250,000 - 274,999 - $ 8,565 INDUSTRIALMAREHOUSE 275,000 - 299,999 - $ 9,421 INDUSTRIAL/WAREHOUSE 300,000 - 349,999 - $ 10,278 INDUSTRIAL/WAREHOUSE 350,000 - 399,999 - $ 11,990 INDUSTRIAL/WAREHOUSE 400,000 - 449,999 - $ 13,703 INDUSTRIAL/WAREHOUSE 450,000 - 499,999 - $ 15,416 INDUSTRIAL/WAREHOUSE >500,000 - $ 17,129 RATECALCFINAL.xis Page 3 4/14/973:55 PM 9 :J - 297 ,,CITY OF MIAMI PRELIMINARY RATES $30,818,812 BUILDING ! RATE/ CATEGORY NAME I TIER DESCRIPTION COUNT i BUILDING - ^---------t<1,999---------- INSTITUTIONAL _-~�--- 507 2,000 - 3,499 197 ---------------- $ 127 INSTITUTIONAL $ 253 INSTITUTIONAL_ 3,500 - 4,999 136 15,000 - 9,999 �10,000- 19,999 153 $ 443 _ _ _ INSTITUTIONAL _i - - INSTITUTIONAL -- I $ _ 1,265 INSTITUTIONAL _ -- 120,000 - 29,999 55 -- I $ 2,530 INSTITUTIONAL -_ _]30,000 39,999 y- 36 I40,000 - 49,999 24 _ $ -� 3,796_ INSTITUTIONAL $ 5,061 INSTITUTIONAL 150,000 - 59,999 20 _ $ 6,326 _ INSTITUTIONAL _ 60,000 - 69,999 �_ 16 - $ - 7,591 INSTITUTIONAL INSTITUTIONAL 707000 - 79,999 80,000 - 89,999 I 12 9 $ 8,856 $ 10,121 INSTITUTIONAL _ 90,000 - 99,999 12 $ 11,387 INSTITUTIONAL 100,000 - 124,999 15 $ 12,652 INSTITUTIONAL 125,000 - 149,999 13 $ 15,815 INSTITUTIONAL 150,000 - 174,999 10 $ 18,978 INSTITUTIONAL 175,000 - 199,999 6 $ 22,140 INSTITUTIONAL 200,000 - 224,999 3 $ 25,303 INSTITUTIONAL 225,000 - 249,999 2 $ 28,466 INSTITUTIONAL 250,000 - 274,999 3 $ 31,629 INSTITUTIONAL 275,000 - 299,999 5 $ 34,792 INSTITUTIONAL 300,000 - 349,999 3 $ 37,955 INSTITUTIONAL 350,000 - 399,999 3 $ 44,281 INSTITUTIONAL 400,000 - 449,999 3 $ 50,607 INSTITUTIONAL 450,000 - 499,999 1 $ 56,933 INSTITUTIONAL >500,000 11 $ 63,258 RATECALCFINAL.xls Page 4 4/14/973:55 PM 97- 297 CITY OF MIAMI PRELIMINARY RATEF $30,818,812 CATEGORY NAME BUILDING RATE/ DESCRIPTION_L COUNT BUILDING —TER Residential 15,1181 34.61 % $ 132.61 Multi -family Public Housing Commercial IndustrialMarehouse — _ 11, 72 2 _ 2,678 8,672 — — — — 622 _ 25.80% 6.13% 19.85%1 1.42% $ 159.24 $ 472.56 $ 0.10 $ 0.03 Institutional 5,322 _12._18%1 $ 0.13 43,684 Revenue Requirements $ -2 % of Budget 100.00%1 19 RATECALCFINAL.xls Page 5 4/14/973:55 PM 97- 297 i TO : Honorable J.L. Plummer Commissioner CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM DATE : April 11, 1997 FILE : SUBJECT : Expenditure Cuts FY 1998 FROM Pdward qUe REFERENCES: City Mana er ENCLOSURES: Pursuant to your request to define what expenditure cuts we would make to replace the net amount of $12,895,000 (the difference between the Fire Assessment Fee and the credits for Solid Waste Collection), please accept the following: in 000's 1) Eliminate Management Recovery items (mid -management, training) $ 1,800 2) Eliminate Self Insurance Reserve 1,500 3) Eliminate Contingency Reserve 1,000 4) Defer the following Capital Improvements: City Clerk's Office - Records Archives $ 350 Coconut Grove Center - Renovations 500 Miamarina - Floating Dock 300 Miamarina - Dockmaster Office 70 Watson Island Marina - Renovations 300 Citywide - Automated Time and Attendance 470 Citywide - Emergency Operations Center 180 Citywide - New Computers 500 Police - Headquarters Building renovations 400 Sub -Total 3,070 5) Reduce Trash Collection (See attachment A) 650 6) Modify Residential Recycling Program (See attachment A) 817 7) Eliminate Night Mechanical Sweeping (See attachment A) 680 8) Parks Programs (See attachment B) 769 9) Budget and Management Office 75 10) Finance Department 133 11) City Managers Office 60 12) Purchasing Department 25 13) Human Resources 17 14) City Clerk 46 15) Police - Vacant Non -Sworn positions 677 16) Law Department 12 1- 17) Manuel Arti�me - Deficit 183 97- 297 Honorable J.L. Plummer April 11, 1997 Page 2 18) Dinner Key Marina - Temporaries 104 19) Public Works 175 20) Building and Zoning 175 21) Fire Departmental Capital 250 22) Miscellaneous Capital Replacement 250 23) Citywide - Future Vacancies 310 Total $12,895 These- expenditure cuts were completed in a manner that will not break current union contracts. In my professional opinion, these cuts are not conducive to the proper management of the City's affairs, nor do I believe that they would be acceptable to the State's Financial Oversight Board. cc. Honorable Mayor and Members of the City Commission 97- 297 EXHIBIT A CITY OF MIAIti I DEPARTMENT OF SO't-ID WASTE BUDGET REDUCTION FY `97-'98 Annotations F3 uctions 1) Reduce Trash Collection - Residential trash collection will be accomplished by requiring residents to place small trash containerized, bagged or bundled with twice per week garbage. Large bulky items and tree cuttings would be placed separated, at curbside for scheduled monthly collection. Special collections would be provided at cost to residents. $ 6 5 0, 0 0 0 2) Modify Residential Reoyrling Program - Weekly curbside recycling collection would be -®laminated and replaced by weekly scheduled alternating drop-off locations for residents to bring recycling4materials. The tipping- fees associated with increased tonnage diverted to garbage as a result of the anticipated reduction in resident participation associated with drop-off service would be offset by reductions in operating costs. $ 817;.0 0 0 , 3) Night Mechanical Sweeping - Mechanical street sweeping of commercial corridors would be eliminated. Waste Collectors would be utilized as White Wings in neighborhoods for litter removal and the maintenance of litter containers and, sidewalk cleanliness. $ 6 8 0, 0 0 0 97— 297 EXHIBIT B DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $591305047 REDUCTIONS IMPACT 02% ($102,601� PART-TIME & TEMP SALARIES $53,711 ! -ELIMINATION OF CITYWIDE PARKS DEPT. CHEMICALS* 489890 SPECIAL EVENTS (SNOW DAY, EASTER EGG TOTAL $102,601 HUNT, HALLOWEEN) 41 -ELIMINATION OF AFTER SCHOOL PROGRAMS AT EIGHT (8) FACILITIES @4% ($ 2059202� PART-TIME & TEMP SALARIES $156,312 -REDUCTION IN THE OPERATION OF FOUR (4) CHEMICALS * 48,890 PARKS TO ONLY FIVE (5) DAYS OUT OF THE WEEK TOTAL $205,202 -ELIMINATION OF CITYWIDE PARKS DEPT, SPECIAL EVENTS (SNOW DAY, EASTER EGG HUNT, HALLOWEEN) -ELIMINATION OF AFTER SCHOOL PROGRAMS AT EIGHT (8) FACILITIES -ELIMINATION OF SEASONAL PARKS DEPARTMENT CITYWIDE LEAGUES (BASEBALL, FLAG FOOTBALL, SOFTBALL, SOCCER) C6% ($307,803) PART-TIME & TEMP SALARIES CHEMICALS* C DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $591309047 (CON'T) REDUCTIONS $258,913 48,890 TOTAL $307,803 2 IMPACT -ELIMINATION OF ALL STAFF AT OUR THREE (3) TENNIS CENTERS -REDUCTION IN THE OPERATION OF FOUR (4) PARKS TO ONLY FIVE (5) DAYS OUT OF THE WEEK -ELIMINATION OF CITYWIDE PARKS DEPARTMENT SPECIAL EVENTS (SNOW DAY, EASTER EGG HUNT, HALLOWEEN) -ELIMINATION OF AFTER SCHOOL PROGRAMS AT EIGHT (8) FACILITIES -ELIMINATION OF SEASONAL PARKS DEPT. CITYWIDE LEAGUES (BASEBALL, FLAG FOOTBALL, SOFTBALL, SOCCER) O8% ($410,404) PART-TIME & TEMP SALARIES CHEMICALS* DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $5,1309047 (CON'T) REDUCTIONS TOTAL $361,514 48,890 $410,404 3 IMPACT i -ELIMINATION OF ALL STAFF AT OUR THREE (3) TENNIS CENTERS -REDUCTION IN THE OPERATION OF FOUR (4) PARKS TO ONLY FIVE (5) DAYS OUT OF THE WEEK -ELIMINATION OF CITYWIDE PARKS DEPARTMENT SPECIAL EVENTS (SNOW DAY, EASTER EGG HUNT, HALLOWEEN) -ELIMINATION OF AFTER SCHOOL PROGRAM AT AT (8) FACILITIES -ELIMINATINOF SEASONAL PARKS DEPARTMENT CITYWIDE LEAGUES (BASEBALL, FLAG FOOTBALL, SOFTBALL, SOCCER) -REDUCTION IN PARK OPERATING HOURS OR PERIODIC CLOSING OF FACILITIES WHEN PARK PERSONNEL HAVE AUTHORIZED ABSENCES (VACATION, SICK OR INJURY LEAVE, ETC.) DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $591309047 (CON' T) REDUCTIONS IMPACT 10% $5131005 PART-TIME & TEMP SALARIES $464,115 -ELIMINATION OF SUPERVISED RECREATION CHEMICALS* 48,890 PROGRAMS CURRENTLY OFFERED AT SIXTEEN TOTAL $513,005 (I6) MAJOR PARKS AND FOUR (4) SMALLER PARK FACILITIES -ELIMINATION OF ALL STAFF AT SIX (6) PARKS -ELIMINATION OF ALL STAFF AT OUR THREE (3) TENNIS CENTERS -REDUCTION IN THE OPERATION OF FOUR (4) PARK'S TO ONLY FIVE (5) DAYS OUT OF THE WEEK -ELIMINATION OF CITYWIDE PARK DEPT SPECIAL EVENTS (SNOW DAY, EASTER EGG HUNT, HALLOWEEN) 4 DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $591309047 (CON'T) REDUCTIONS 10% ($513,005) Con't 12% ($615,606) PART-TIME & TEMP SALARIES $566,716 CHEMICALS* 48,890 TOTAL $615,606 5 IMPACT -ELIMINATION OF AFTER SCHOOL PROGRAMS AT EIGHT (8) FACILITIES -ELIMINATION OF SPRING, SUMMER AND HOLIDAY RECREATION CAMPS -ELIMINATION OF SEASONAL PARKS DEPT CITYWIDE LEAGUES (BASEBALL, FLAG FOOTBALL, SOFTBALL, SOCCER) -REDUCTION IN PARK OPERATING HOURS OR PERIODIC CLOSING OF FACILITIES WHEN PARK PERSONNEL HAVE AUTHORIZED ABSENCES (VACATION, SICK OR INJURY LEAVE, ETC.) -ELIMINATION OF SUPERVISED RECREATION PROGRAMS CURRENTLY OFFERED AT SIXTEEN (16) MAJOR PARKS AND FOUR (4) SMALLER PARK FACILITIES -ELIMINATION OF ALL STAFF AT SIX (6) PARKS DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $59130,047 (CON'T) IMPACT 12% ($6I5,606) Con't -ELIMINATION OF ALL STAFF AT OUR THREE (3) TENNIS CENTERS -REDUCTION IN THE OPERATION OF FOUR (4) PARKS TO ONLY FIVE (5) DAYS OUT OF THE WEEK -ELIMINATION OF CITYWIDE PARKS DEPARTMENT SPECIAL EVENTS (SNOW DAY, EASTER EGG HUNT, HALLOWEEN). -ELIMINATION OF AFTER SCHOOL PROGRAMS AT EIGHT (8) FACILITIES -ELIMINATION OF SPRING, SUMMER AND HOLIDAY RECREATION CAMPS -ELIMINATION OF SEASONAL PARKS DEPARTMENT CITYWIDE LEAGUES (BASEBALL, FLAG FOOTBALL SOFTBALL, SOCCER) 6 DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $59130,047 (CON'T)i REDUCTIONS IMPACT a 12% ($615,606) Con't -ELIMINATION OF SUPERVISED SUMMER RECREATION PROGRAM (I.E. OLYMPIC SUMMER GAMES, FIELD TRIPS, ARTS & CRAFT, TENNIS, DOLL SHOW, TALENT SHOW, ETC.) -REDUCTION IN PARK OPERATING HOURS OR PERIODIC CLOSING OF FACILITIES WHEN PARK PERSONNEL HAVE AUTHORIZED ABSENCES (VACATION, SICK OR INJURY LEAVE, ETC.) a, 14% ($718,207) PART-TIME & TEMP SALARIES $632,128 -ELIMINATION OF SUPERVISED RECREATION FOOD 4,744 PROGRAMS CURRENTLY OFFERED AT SIXTEEN (16) CONTRACT SERVICE 4,635 MAJOR PARKS AND FOUR (4) SMALLER PARK TRANSPORTATION 27,810 PARK FACILITIES CHEMICALS 482890 TOTAL $718,207 -ELIMINATION OF ALL STAFF AT SIX (6) PARKS -ELIMINATION OF ALL STAFF AT OUR THREE (3) TENNIS CENTERS 7 DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $591309047 (CON'T) IMPACT 14% ($718,207) Con't -REDUCTION IN THE OPERATION OF FOUR (4) PARKS TO ONLY FIVE (5) DAYS OUT OF THE WEEK -ELIMINATION OF CITYWIDE PARKS DEPARTMENT SPECIAL EVENTS (SNOW DAY, EASTER EGG HUNT, HALLOWEEN). -ELIMINATION OF AFTER SCHOOL PROGRAMS AT EIGHT (8) FACILITIES -ELIMINATION OF SPRING, SUMMER AND HOLIDAY RECREATION CAMPS -ELIMINATION OF SEASONAL PARKS DEPARTMENT CITYWIDE LEAGUES (BASEBALL, FLAG FOOTBALL FLAF FOOTBALL, SOFTBALL, SOCCER) -ELIMINATION OF SUPERVISED SUMMER RECREATION PROGRAM (I.E. OLYMPIC SUMMER GAMES, FIELD TRIPS, ARTS & CRAFT, TENNIS, DOLL SHOW, TALENT SHOW, ETC. 8 DEPARTMENT OF PARKS AND RECREATION PROPOSED BUDGET REDUCTIONS GENERAL FUND FY' 98 BUDGET - $5J30,047 (CON'T) REDUCTIONS _@ 14% ($718,207) Con't @ 15% ($769,507) PART-TIME & TEMP SALARIES $632,128 ADVERTISING 918 TRAVEL & PER DIEM 412 FOOD 6,150 CONTRACT SERVICE 4,635 TRANSPORTATION 27,810 OFFICE SUPPLIES 2,292 CHEMICALS 48,890 PLAYGROUND SUPPLIES 27,117 EXPENDABLE POOL SHOP SUPPLIES 103 NEW EQUIPMENT 2,080 AID TO PRIVATE ORGANIZATION 175000 TOTAL $769,535 F� 9 IMPACT -REDUCTION IN PARK OPERATING HOURS OR PERIODIC CLOSING OF FACILITIES WHEN PARK PERSONNEL HAVE AUTHORIZED ABSENCES (VACATION, SICK OR INJURY LEAVE, ETC,) -CANCELLATION OF THREE (3) PROGRAMS CURRENTLY SERVED BY THE PERSONS WITH DISABILITIES DIVISION -ELIMINATION OF ONE (1) PRE-SCHOOL PROGRAM - IMPACT SAME AS 14% - *THE REDUCTION IN THE COST FOR CHEMICALS IS RELATED TO THE FACT THAT NO FUNDING HAS BEEN BUDGETED FOR THE OPERATION OF THE TWO (2) YEAR-ROUND POOLS AT HADLEY AND JOSE MARTI PARKS. CONSEQUENTLY, WE ARE ASSUMING THAT THESE TWO (2) POOLS WILL CONTINUE TO OPERATE ONLY DURING THE EIGHT (8) WEEK SUMMER PERIOD. NOTE: NONE OF THE PROPOSED PARKS AND RECREATJON DEPARTMENT REDUCTIONS SHOULD HAVE CONTRACTUAL (UNION) IMPLICATIONS. 10 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM i To : Honorable Mayor and Members DATE . April 11, 1997 FILE . of the City Commission SUBJECT . Additions to Five Year Plan I C-1 FROM : Edward Mar ue REFERENCES: City Manager �� ENCLOSURES: Attached are two new sections to the Five Year Plan as well as a revision to the section regarding privatization. We feel that these sections help to clarify and expand upon the existing document. We look forward to discussing the plan in detail with you on Monday, April 14, 1997. 4 97- 297 1 Fiscal Year 1999 and Be, and The Intergovernmental Cooperation Agreement (ICA) between the State and the City states that "The Plan shall ... beginning with fiscal year 1997-98 and each year thereafter, eliminate all known deficits and provide for a structurally balanced budget where recurring revenues are aligned with recurring expenditures". As indicated in the Five Year Plan Budget Summary (pages 103 and 104), fiscal years 1999 and beyond reflect substantial operating deficits. This condition would seem to contradict the ICA. An understanding by the City was reached during the development of the ICA, and confirmed through subsequent conversations with the Oversight Board's Chairman, Counsel, and repeatedly with its Chief of Staff that this contractual language, when read in conjunction with other sections of the ICA, meant that the City would: a) cover 60% and 100% of its recurring expenses with recurring revenues for FY 1997 and FY 1998, respectively, in its first Five Year Plan and; b) in subsequent revisions of the Five Year Plan cover 100% of its recurring expenses with recurring revenues for the current and ensuing fiscal year. The ICA did not contemplate five years of balanced budgets, it did, however, contemplate how one would go about eliminating future year deficits i.e, though a well thought out plan of attack. As a point of information, the major portion of the increase in the deficits for the three out years (1999, 2000, 2001) is the restoration of union concessions. The deficits projected in FY 1999 and beyond assume that the City's operations remain on a status quo basis when compared to the beginning of FY 1997. This will not be the case. During FY 1997, the full scope of the problems both fiscally and operationally will be identified. A reorganization of management has taken place and, when fully implemented, will allow for appropriate internal controls over and managerial focus upon operations. Performance measurement techniques will be taught and initial standards developed for inclusion into the FY 1998 budget. Interaction with the private sector through the Greater Miami Chamber of Commerce and the Blue Ribbon Task Force Regarding Business Practices will be initiated. Privatization options, such as the possible sale, lease, or entering into management contracts regarding the operations of the Off - Street Parking Authority and the Miami Convention Center Complex in order to free up cash reserves, future operational net income, or to liquidate existing debt obligations, will be examined. During FY 1998, many of these activities will continue as well as others initiated, such as, the creation of a new strategic economic development planning process, and th6 long- 9'7 - 297 term leasing of various public/private development projects. The actions taken between the two fiscal years will have a fundamental effect on how City business is conducted and what level of funding will be needed for FY 1999 and beyond, For example, simple actions like following up on workmen compensation and general liability claims and fixing broken sidewalks could, by FY 1999, conceivably save millions of dollars annually, as well as, significantly reduce the outstanding unfunded self-insurance liability. Comparisons to, training by, information from, and ventures with the private sector could only help to contain costs and maximize the City's return on its assets. In conclusion, should all managerial plans fail (which is highly unlikely) and the City is, one year from today, faced with significant deficits in FY 1999 and beyond, the City can: • Impose an emergency freeze on all non -critical expenditures and on hiring; • Seek additional revenue sources not currently authorized, e.g. hotel room tax ($1.1M/yr.) or food and beverage tax ($1.9M/yr); • Raise at least $4.4 Million annually in ad valorem taxes; • Transfer the Fire -Rescue Department to the County; • Reduce capital expenditures; • Raise or reinstate assessments or charges for services; • Privatize significant portions of its operations; or • Attempt to negotiate reduced compensation levels with its unions. 97 --297 Unfunded Liabilities The City of Miami has two major unfunded liabilities to be corrected over time. These two liabilities are the unfunded liability in the General Employees and Sanitation Employees Pension System ("GESE") and the exposure to the estimate of incurred but not reported claims in the City's self insurance program. The liability to the GESE pension system is a result of a court decision (the "Gates Case") which requires a series of payments to this pension system which escalate over time. These payments total approximately $150 million and have a present value of slightly over $100 million. This court order requiring payments of $12 to $17 million over the next ten years is not as much of a burden on the City as it would seem. This payment against prior service costs of the pension system is being offset by a negative current cost in the plan. The investment market performance and the performance of the money managers employed by the GESE Board have been so much in excess of the assumed rate of return of the System that these returns have overfunded current costs. The System's negative current costs have reduced the actual cost to fund this prior service cost which reduces the burden to the City. The City's self insurance program has an estimated incurred but not reported amount of claims of $77,234,000. This amount, which increased by $6,788,000 in the 1996 fiscal year, is composed of both worker's compensation claims and liability claims. The annual estimated amount that will be spent on these claims is $15 million. The City has been aggressively managing these claims and has noticed a reduction in the claims trends. Claims for both worker's compensation and liability are down over a third for the first six months of the fiscal year compared to the first six months of last fiscal year. If this positive trend in claims can be continued, it will not only relieve a portion of the estimated $15 million current annual cost but have a very positive effect on the valuation of the estimated total liability. Another positive impact in the self insurance program is the decision to establish a reserve to fund the long term portion of these claims. The City, in this five year plan, will establish a self insurance reserve and fund it by $1.5 million annually until it reaches the one year cost of the program of $15 million over ten years. This reserve will have two positive effects on the program. The first is that the City will have the ability to provide for any major unexpected claim ("shock loss") which could appear at any time. The second benefit of this reserve is that the City will begin to act as an insurance company and benefit from the investment of these reserves. In the case of the City these investment earnings will be used to reduce the ongoing cost of the program. 97- 297 01 i Privatization on a Rational Basis Several of the guiding principles used to compile this report refer to a concept that the City should provide services as efficiently as the private sector. In those instances where services cannot be provided as efficiently, they should be either discontinued or the task should be out -sourced. Privatization (out -sourcing) has the potential of saving the City millions of dollars annually. However, if done improperly it can cost the City more than the potential savings because of the complexity associated with the services privatized, the details of the Request for Proposal (RFP) or Bid that would need to be developed, and the contractual arrangements that must be negotiated between the City ana the successful private sector entity. This is an area where the City should not be "penny wise but pound foolish". The City needs to retain competent consultant advise for the development of the RFP or Bid documents as well as to effectively evaluate and compare the offers from the private sector. Due to the fact that approximately 82% of the City's operational costs is comprised of salary and fringes, the possible benefits of out -sourcing will only be recognized on a substantial basis to the extent that they can be accommodated through existing labor contracts. The three major labor contracts of the City are with the American Federation of State, County and Municipal Employees (AFSCME), the Fraternal Order of Police (FOP), and the International Association of Fire Fighters (IAFF). The AFCSME contract, for all intents and purposes, precludes the layoff of employees for any reason other than for cause. The FOP contracts allows layoffs however, given current Federal funding of officers through the COPS program, layoffs are not cost effective. The IAFF contract contains minimum manning and service levels and other restrictive provisions which preclude any serious privatization options. These three contracts will be re -negotiated during FY 1998 as they terminate on September 30, 1998. Given the current state of affairs, the City intends on using the resources offered to it from the Blue Ribbon Task Force (See page 42) and the training offered by Dr. Dluhy and Florida International University's Institute of Government (See page 38) to measure itself against the private sector and to examine viable out -sourcing options that may be put into effect FY 1999. The City's labor contract with the Labor International Union of North America (LIUNA), which is the bargaining unit for the bulk of our Solid Waste Departmental personnel, terminates on September 30, 1997. The provisions of the current contract with LIUNA precludes privatization of the solid waste function during FY 1997. We will baentering into contract negotiations with LIUNA beginning in May 1997 for the future contract 13 97- 297 period. Simultaneously, the City will be investigating its privatization options in this regard (See the Exhibit I which is a status report on the City's privatization efforts). Candidates for privatization which the City may investigate include: 1) the sale, lease, or the execution of a management contract regarding the operations of the Department of Off -Street Parking. At least four large firms have expressed an interest in competing for such business (See Exhibit II for three letters of interest from such firms). Such privatization should it occur will be done through a formal RFP process coordinated with the Department of Off -Street Parking; 2) the sale or lease of the Miami Convention/ James L. Knight Center, along with other properties as a package, in order to liquidate outstanding debt and free up General Fund revenues used to make debt service payments; 3) Risk Management; 4) Fleet Management; and 5) others as private sector alternatives are developed. EI 14 97- 297 a I EXHIBIT I Pursuant to the direction of the City Commission, staff has pursued the possibility of privatizing the Solid Waste Department of the City of Miami. Accordingly, a meeting was held with representatives of the solid waste private industry on March 19, 1997, with representatives of LIUNA, the solid waste union, present. At this meeting, representatives of the private sector and LIUNA were requested to furnish the City with written estimates to: • Provide solid waste collection for 65,000 residences and hauling to solid waste disposal sites. These estimates were for collection and hauling only, with the City paying the disposal fee pursuant to Pxisting contracts. • Provide collection and hauling for 31,000 tons per year of illegally dumped material. • Provide for collection and hauling of 13,000 tons per year from In-House/City of Miami owned property and facilities. • Provide for the servicing and hauling of 600 tons per year of litter from sidewalk bins near bus stops throughout the City. • State whether or not they would employ the current, employees of the Department, and if so, on what basis, and wlidther or not they would acquire the City's solid waste equipment. On March 28, 1997 the City Manager's Office received written estimates from the following three private haulers: Waste Management of Dade County (Waste Management), Browning Ferrous Industries (BFI), and Kimmins Recycling Corp. (Kimmins). A schedule illustrating their comparative estimates is attached as Exhibit A. Based upon the information furnished, it appears that the City may save between $1.1 million and $2.7 million a year if the function were to be privatized. This represents a savings of up to 29% of comparative costs of collection and hauling of solid waste by the City. The three companies responding have indicated that they would retain City employees who meet their company's job qualifications. The companies have also indicated that they would pay the City the fair market value of its existing solid waste equipment. It must be realized that these figures are strictly estimates based upon information furnished to the City. However, the Administration has every reason to believe that should the City issue formal Requests for Proposals (RFPs) the potential savings may be even greater. The Administration believes that to maximize savings, the City should be divided into 3 or 4 sections for the purpose of bidding, and that the bidders would be invited to bid on each section, with a separate bid for the entire City. It is the Administration's recommendation that it be authorized to employ consultant(s) experienced and knowledgeable in privatization in other communities to assist the City in the preparation of a formal RFP, to analyze the proposals received, make recommendations of awards to the Iowest and most responsive bidder or bidders, and help negotiate a three- to five- ' year contract. 15 y7_ 297 Exhibit II Lockheed NEirtin IMS First Union I-inanciA Cantor '_IH) Smith Diem nc BouIr anL Suite 1081) \Iiami, FL ? 3131 1',!Iehhonc 305•377•18911 Facsimile 305.377.9559 March 20, 1997 The Honorable Joe Carollo Mayor City of Miami 3500 Pan American Drive Miami, FL 33131 Dear Mavor Carollo: LOCKHEED MARTIN Lockheed Martin IMS in conjunction with APCOA. Inc. is pleased to present a conceptual proposal for partnering with the City of Miami and t ie Department of Off -Street Parking to enhance operational and capital abilities as well as provide substantial immediate and long-term cash flow to the City of Miami. LOCKHEED MARTIN. IMS/APCOA QUALIFICATIONS: Lockheed Martin IMS is a wholly owned subsidiary of the Lockheed-- Martin Corporation and is the most experienced company in the world in assisting cities with all aspects of on -street parking programs. The Lockheed Martin Corporation is a Fortune 15 company with annual sales of $30 billion. 190.000 employees worldwide and 17,500 employees in the State of Florida. Our Miami office is responsible for Municipal Service business development nationwide and all Lockheed Martin IMS efforts in the State of Florida. We have also moved our Latin America business development office to Miami.. This office is responsible for all j Lockheed Martin Corporation products and service offerings in Latin America. Whether the challenge is collection of parking and traffic citations. processing emergency medical transport billings, providing electronic toll road collection systems or assisting jurisdictions with implementation of Welfare Reform programs. Lockheed Martin IMS applies its leading edge technology to the solution of complex public sector problems. APCOA is the largest commercial operator of paid parking facilities in the United States with more than 4.000 employees. APCOA provides capital for garage design and construction and state of the art user friendly revenue control systems for cities and counties. airports. universities and hospitals. APCOA has operated in Miami for 25 years. APCOA's largest client in Miami is Jackson Memorial Hospital with more than 10.000 spaces operating on a 24 hour per day 7 day per week basis. APCOA provides leading edge garage and lot revenue control technology as well as capital to expand parking systems while increasing earnings through effective management techniques. APCOA nationwide accommodates more titan 130 million cars per year. OUR UNDERSTANDING OF THE CITY OF MIAMI NEEDS: Both Lockheed Martin IMS and APCOA fully understand the difficult financial challenges which face the City of Miami during the current fiscal year and over the foreseeable horizon. The purpose of this conceptual proposal is to document a methodology which uill bring substantial financial resources to the City of Miami during the current fiscal year and in future years while maintaining the Off -Street Parking Board in existence and ensuring that properties owned by the Off-Strect Parking Board and the City of Miami do not have to be sold to achieve financial goals. We understand that solutions must provide not only one time but also recurring revenues. We also understand that our proposal must be acceptable to the City Commission. Off-Strcet Parking Board, Fiscal Oversight Board and most importantly. improve the parking program for the citizens and visitors of the City of Miami. 17 9?-- 297 THE LOCKHEED MARTIN IMS/APCOA PROPOSAL: By way of background information, the City of Miami has issued parking revenue bonds with the retraining principal of approximately $16.9 million to construct a number of parking garages, surface lots and other improvements. As a result of the requirements of the Trust Indenture which governs the use of funds and the prudent fiscal policies of the Off -Street Parking Board retained earnings on the order of $15.2 million have been generated over the years. In addition, the Department currently generates net revenue of approximately $3.0 million annually before debt service. The Lockheed Martin IMS/APCOA proposal envisions the Off -Street Parking Board would enter a long tern operational lease agreement with our combined firms. That lease agreement would provide an advanced lease payment to the Department of Off -Street Parking which would be utilized to defease the existing bonds. This means that there would be no more parking bonds in existence and the related trust indenture provisions which govern the use of the reserves would no longer be in effect. This would allow the reserves to be utilized as a non -recurring revenue to fill the budget short -fall. The only reserves that would remain with the Department of Off Street Parking would be funds accumulated for a specific purpose such as the Coconut Grove Parking Impact Fee Trust Fund and possibly a renewal and replacement fund. The long -tern lease agreement with Lockheed Martin IMS/APCOA would require that future operational revenues would be first set aside for operating the parking facilities. As a second use, operational revenues would be retained by Lockheed Martin IMS/APCOA for recovery of the advanced lease payment at a reasonable rate of return. The third use, which provides the recurring revenues to the City of Miami. would be a sharing of net revenues on a negotiated formula. Our financial projections show that significant recurring revenues which do not directly benefit the City of Miami today could be included in the solutions to the City's-fi ihncial difficulties which are currently being developed by the City Manager for review by the City Commission and the Financial Oversight Board. These are not theoretical net revenues. They exist and can be validated for the future, thereby meeting the test of the Financial _ .• Oversight Board. ADDITIONAL BENEFITS: Lockheed Martin IMS could also work closely with the Dade County Clerk of the Court to improve parking citation revenues for the City. If the collection ratio were brought up to our national client levels in cities such as Boston, Washington. DC. New Orleans. Denver, Philadelphia, Los Angeles and Milwaukee, significant additional recurring income would be available to the City of Miami. The Lockheed Martin IMS/APCOA proposal also includes an understanding of the requirement to negotiate development of a garage in Coconut Grove, replacement and expansion of Garage Number One in the downtown area, a possible capitalization for Garage Number Four located at the James L. Knight Center, and a cooperative venture with Miami Dade Community College Mitchell Wolfson Campus to provide needed parking and overflow for the new Arena. Most importantly, we will develop a transition process that ensures fairness for Department of Off -Street Parking employees. Our history of partnering with government demonstrates that we are able to offer transition plans fitted to the unique needs of each employee based on career status and individual goals. HOW THIS PROPOSAL MEETS THE NEEDS OF THE CITY OF MIAMI: The Lockheed Martin IMS/APCOA proposal meets all tests established by the Financial Oversight Board Agreement and overcomes concerns which have been expressed regarding alternate proposals which provide one-time solutions through sale of assets. Our key provisions include: Releases millions of dollars from Department of Off -Street Parking retained earnings as a non -recurring revenue before the end of the current fiscal vear. 18 97-- 297 I • Establishes a process to create real and measurable recurring revenue through partnering with nationally recognized Lockheed Martin IMS and APCOA to operate the parking facilities of the City of Miami. • Keeps the Off -Street Parking Board in place to oversee the lease agreement allowing the solutions to occur %vithin the existing City of Miami Charter provisions which establish the responsibilities of the Board. • Provides a process to meet parking capital development requirements. • Ensures a smooth transition for public employees. Both Lockheed Martin IMS and APCOA stand ready to bring our considerable experience and resources to bear to help resolve the financial issues facing the City of Miami while enhancing the parking process. We look forward to further discussing partnering with the City of Miami and the Off -Street Parking Board regarding this proposal. Sincerely, Al - Roger M. Carlton Clyde Wilson Vice President, Business Development APCOk Inc. Lockheed Martin IMS RMC:ah cc: City Manager Ed Marquez 19 97- 207 N PK ENWME NYSE Central Parking System of Florida, Inc. 201 South Biscayne Boulevard, Suite 320, Miami, FL 33131 (305) 372-5151 Fax: (305) 374-8271 April4, 1997 Mr. Ed Marquez City Manager 444 SW 2nd Avenue, IOth Floor Miami, Florida 33130 Dear Mr. Marquez: This is in reference to Lockheed Martin IMS offer to take over the Off -Street Parking Department. In reading the Herald's article this mofning, I was pleased to note that you support an RFP process for such major undertaking. In a letter to all City ComfMssioners last month, Central Parking System, a publicly traded company, proposed a similar plan with the full understanding that there would have to be a bid process. I also found the article interesting in that APCOA- Lockheed Martin's proposed partner - has been referred to by Mr. Carlton as the "..largest operator of paid parking facilities in the United States." I am sure this is simply an oversight. Mr. Carlton is well aware that Central Parking System, an established NYSE company, operates 1,500 properties in 64 cities including over 60 in South Florida. APCOA operates less than 500 nationally, and only one locally. As a way of comparison, Off -Street Parking Department manages approximately 32.000 spaces. Central Parking System operates over 37,000 spaces in South Florida alone. In addition, Central Parking System presently manages over 90 municipal programs with great similarities to this project. A sample listing is enclosed for your review. In addition to experience, local presence, and resources of the proposer, the financial stability and strength of all partners and bidders must be considered as a major deciding factor. I have enclosed our firm's most recent Annual Report for your reference. We look forward to participating in the bid process and further demonstrate our ability to provide the City and its management with the best operating plan. In the interim if I can be of any assistance, please do not hesitate to call me. Sincerely, Biqa edari Vice President "Central Parking System seeks to be the premier transportation management company in the world." 9 7 _ 297 "Over 1400 parking locations in 70 cities in the U.S., Puerto Rico, England, Mexico and Germany." - i 7361 S.W. 168th Street Miami, Florida 33157 Telephone/Fax: 23 5-3 3 78 February 18, 1997 Edward Marquez, City Manager City of Miami 444 S.W. 2nd Avenue Miami, Florida Dear Mr. Marquez, J FEB 1 81997 U As per yoiir recent conversaiion with George DePontis , please find herein a a brief review of our client's interest in the City of Miami's parking garages. Approximately four years ago, our client Estacionamientos.Subterraneos, S.A., Madrid, Spain ("ESSA") held extensive discussions with the Department of Off Street Parking regarding the purchase of some of the parking garages owned and operated by the Department. After approximately sixty days of negotiation, the Department advised ESSA that it had no interest in disposing of these assets "at that time". Today, given the highly publicized financial condition of the City of Miami (the owner of the Departmentof Off Street Parking) we thought it would be appropriate to renew, on behalf of ESSA, the expression of their interest in the parking garages. ESSA's terms are flexible, They are prepared to pay what the properties are worth, consistent with their utilization as parking garages, and based on the latest financial data. ESSA, for your information, was founded more than thiriy years ago. It has only = business, which is to own, operate and maintain parking garages. They currently own and operate 19,000 parking spaces in Spain, Portugal and Puerto Rico. ESSA is a public company whose shares are listed on the Madrid and Bilbao Stock Exchanges. It is their objective to cooperate with Municipalities in which their garages are located and to serve the parking needs of the public. An affiliated company of Banco Santander is a prominent shareholder in ESSA. ESSA, as abovementioned, would be flexible in the terms of any transaction, which might include some form of long term lease with or without an option to purchase. We kindly request the opportunity to meet with you to determine if this proposed 97- 297 transaction is of interest to the City of Miami, and if so, how you suggest that ESSA proceed. We look forward to hearing from you and thank you for kind attention. Very truly yours, R er A. Coe cc: Hon. Joe Carollo, Mayor- City of Miami George De Pontis Joseph S. Geller, Esq. RAC%db 4 97- 297 Cv,-AGYMIHALY PROPERTIES 2520 SOUTH MIAMI AVENUE MIAMI. FLORIDA 33129 PHONE: 854-0825 April 11' 1997 -+ A CITY OF MIAMI COMMISSIONERS RE: FIRE RESCUE FEE (ALIAS GARBAGE FEE) We are a small family business. We built and nod manage over 20 small buildings - some only 6 unitA}, the largest 34 units. Most are 30 years old,or older and therefore my rents are rmderately low. I do not understand why the landlord, has been singled out to carry the largest burden for the city's shortfall of monies. According to the Herald article in todays paper, everyone gets credits for the '"abolished'" garbage fee the property owner, the 1-4 unit buiDding, the condo dweller, but not the owner of 5 or more units! Instead a new $198.00 per unit ( no matter if an efficiency or 3 bedroom)fee and still we must pay a private hauler to remove our garbage, since the city does not provide this service. It is impossible for me to pass this on to my renters, since they live -from pay check to pay check. It is the landlord who once again gets overtaxed. Please, consider spreading this more evenly throughout the city. As it stands, it is most unfair. S' cerely Yours, -r Eva Nagym'halY" o' 97- 297 ,APR,,-18' 9`(FRI) 11:18 Ia111 i'IVB TEL:550 5 P. 002 "Tourism is Everybody's Business„ April 9, 1997 Edward Marquez, City Manager City of Miami 3500 loan American Drive Coconut Grove, FL 33133 Dear Ed: x was out of town Thursday and Friday so I didn't read your 5-year recovery plan until over the weekend. Please accept my professional compliments for a job very well done. I was very impressed with the several chapters dealing with the internal administration, i.e., professionalism, strategic planning, management rights, charter revision, training, your new organization chart, etc. The latter is very similar to the organization that former City Manager Mel Reese created. Paul Andrews, who was an Engineer and later became City Manager, was the Assistant City Manager in charge of operations while I was the Assistant in charge of Budgeting, Personnel and Administration. In my. judgment, that system worked very well and I think at the end of the day you will be pleased with it as well. I also like your division of the Finance. Department. I particularly compliment you on your financial recovery plan and while there have been concerns expressed by some, it seems very fair particularly for the small homeowner. Recurring revenue is the key to the solution, .And, while no one enjoys biting the bullet, your solution is more cost sensitive than raising the solid waste fee which would have hit everyone. I hope that we now begin talking about your recovery plan or the City Commission's recovery plan after the Commission takes final action. I don't think anyone can appreciate hours you have put into the effort. and very well articulated recovery IS' erely; MIS' R. Stierheim as much as I how much hard work and long in my judgment it was a well thought out strategy. CC: Honorable Joe Carollo, Mayor, City of Miami & Honorable Commissioners, City of Miami Honorable Lieutenant Governor Buddy MacKay & Members of Q rsigh Board rp 701 Brickell Avenue, Suite 2100, Miami, Florida 33131 ($05) 539-3000, FAX (305) 53J•31 ! 3