HomeMy WebLinkAboutCC 1996-10-01 Minutes�i
y ƒ .
<
»�� .
lea
PREPARED BY rdE OFFICE OF THE CITY CLERK
CITY HALL
WALIER FOB . ..1
CITY CLERK
1
J�
1
i
{ INDEX
MINUTES OF BUDGET WORKSHOP
MEETING
October 1, 1996
LEGISLATION PAGE
ITEM SUBJECT
NO.
NO.
1. BUDGET WORKSHOP: DISCUSSION
DISCUSSION 75
CONCERNING THE FINANCIAL STATE
10/1/96
OF THE CITY -- CITY MANAGER AND
COMMISSION SUGGEST WAYS TO
ENHANCE REVENUE -GENERATING
SOURCES AND WAYS TO CREATE NEW
_
REVENUE SOURCES -- CONSIDER TAX
ANTICIPATION NOTES, INCREASE
SOLID WASTE FEES, NEED TO COLLECT
DELINQUENT FEES, NEED TO ENFORCE
ALL BUSINESSES TO HAVE LICENSES,
ETC. -- COMMENTS FROM VARIOUS
DEPARTMENT DIRECTORS -- CONSIDER
LEGAL ACTION AGAINST THOSE WHO
ARE RESPONSIBLE FOR CITY'S
FINANCIAL CRISIS.
i
r
i
MINUTES OF BUDGET WORKSHOP MEETING OF THE
CITY COMMISSION OF MIAMI, FLORIDA
On the 1st day of October, 1996, the City Commission of Miami, Florida, met at its
regular meeting place in the City Hall, 3500 Pan American Drive, Miami, Florida in special
session.
The meeting was called to order at 10:14 a.m. by Mayor Joe Carollo with the following
members of the Commission found to be present:
Mayor Joe Carollo
Vice Mayor Wifredo Gort
Commissioner Tomas Regalado
Commissioner Richard P. Dunn, II
Commissioner J.L. Plummer, Jr.
ALSO PRESENT:
Merrett R. Stierheim, City Manager
A. Quinn Jones, III, City Attorney
Maria J. Argudin, Assistant City Clerk
ABSENT:
Walter J. Foeman, City Clerk
An invocation was delivered by Commissioner Dunn, after which Mayor Carollo led
those present in a pledge of allegiance to the flag.
i
i
---------------------------------------- --------------------------------------------------------------
1. BUDGET 'WORKSHOP: DISCUSSION CONCERNING THE FINANCI_ zl_
STATE OF THE CITY -- CITY MANAGER AND COMMISSION SUGC, , -'T I
WAYS TO ENHANCE REVENUE -GENERATING SOURCES AND WAYS #
TO CREATE NEW REVENUE SOURCES -- CONSIDER TAX
ANTICIPATION NOTES, INCREASE SOLID WASTE FEES, NEED TO
COLLECT DELINQUENT FEES, NEED TO ENFORCE ALL BUSINESSES
TO HAVE LICENSES, ETC. -- COMMENTS FROM VARIOUS
DEPARTMENT DIRECTORS -- CONSIDER LEGAL ACTION AGAINST
THOSE WHO ARE RESPONSIBLE FOR CITY'S FINANCIAL CRISIS.
Mayor Carollo: The meeting that's before us today is a budget hearing for the Commission. It is
not a public hearing. Therefore, the public will not be allowed to speak since this is _ `,udgct
meeting of the Commission. The union representatives from the different unions will bc; a'lt_, red
to speak at the appropriate time, however. Mr. Manager, I have gone over are 0u: . he
memorandum that you sent to all the Assistant City Managers, the department dit:,.,to_s, L___i ►.0
i
i
1 October 1, 1996
the different members of the Commission. It is a four -page memorandum, that while it's pl.v. inj
forth some very strong and direct changes, I fully concur with you that these are the step. '3t
need to be taken now, if we are to truly strive to achieve a balanced budget for the Ci,, r
Miami. I don't think we have any alternatives but to support you and follow your adv`. :n th
suggestions that you have placed in this memorandum. I think that the leadership has .o s at
the top. If we're to ask the rank and file employees and eventually the residents of Miam.
sacrifice, the sacrifice has to be spread all around. Mr. Manager, what I'd like to do now is f .
you to proceed in describing to us whatever parts of this memorandum that you feel tha, you
need to give us some additional input on. At the same time, we need to go over the entia,
solutions that you had given us before for consideration. And I think that we need t. Jk at
these solutions in three ways. We need to look at the solutions that can immediately either bring
us new revenues, or cut expenditures from the City. Then we need to look at those that we could
do the same, within the next several months to one year's time; and lastly, those that wil•. take a
year or longer to be able to achieve. We have to look at immediate solutions, i . rme:d',
solutions and long-term solutions. The crisis - and it is a crisis that we have before. us - i,-
financial crisis that I would dare to say is the worst that this City of Miami has faced in its 111-
j years of existence. While there might be many that might feel that we can find easy sc'�woi.s to
surface from it, I will say to you that there are not going to be any easy solutions. There is ri,
going to be any manna from heaven that is going to fall. Each decision that we are going to have
to make will be a very difficult decision that will make someone have to sacrifice. Ea& d�cisijn
will be a decision that's going to upset one group or another. There are not going to be any easy
decisions. But at the same time, I want to lay it clear on line what's at stake here. We cithef fo
what we have to do, no matter how much pain it might cost us to get this City financiaily sta`
and to get us on the road of again being one of the major cities of tl e United States, in
aspects, or we simply only have one other solution, and that is to iet the State of Florida com,- .,
and take us over. So for all of those out there that are just looking for the opportunity to at ..
this Commission, to attack this City, when we begin to take the hard... and make the .
decisions that we're going to have to, there are only two solutions. And 1 submit to all hose oi,i
there, especially the critics... the critics that are critics now, but when this was going on, wtie t.
people that were praising what was happening in the City of Miami. And why? Becausr, they
were part of the problem. I submit to those that anyone that truly wants to criticize. tl City in
the future for the decisions that we're going to have to make, or, many of those out thei hat
sincere and want to help the City of Miami with ideas on how to solve this situation, I ,.it t,.
all of those out there that bring forth concrete ideas in writing of where we could e..:ier e
money in the City's budget or where we could bring new revenue. But to find the kind of d_.!Iai
that this City Commission is going to have to find, that will be a minimum of 20 percent of our
City's budget, there are not going to be any easy solutions, no matter which way we turn. But
before we turn to the public, in asking the public, the residents of Miami to sacrifice again, wE
have to go down the line and show them that we have cut everywhere that we can in our City's
budget, that we have looked for every new additional dollar of revenue to this City. il,!j.
Manager, if you could proceed.
Mr. Merrett R. Stierheim (City Manager): Yes, sir.
Mayor Carollo: Thank you.
Mr. Stierheim: Thank you, Mr. Mayor. I think you articulated the position very accurately
With reference to the memorandum that was sent to department directors, some of whoa, +y
not have even had a chance to see it - I don't know that the Commission has had an o, ; ortu.,,
to read it - it was distributed to you late last night. I can't remember when it got ot:t This ,y
only the beginning of what has to take place. I hope that people read this carefully. I kno., ':at
there is already concern among my executive staff. There will be some appeals made to thr,
directives. Whether or not those appeals will be approved or not remains to be seen. It will be
based on justification. I'm deadly serious in what we're about here. I might add also,
2 October 1, 1996
1i
respectfully, that there are other officers... my friend, the City Attorney, the Clerk, there are ,
boards and staff that are under this Commission. This memorandum was directed to tho.
departments that I have authority over, and I think the Commission might wish to, at some point,
discuss this with other key members of your staff, because I think that however we des:l with
this, we should deal with it fairly, and without exception, in my judgment. And I con. id th.
Commission, because already, after the meeting on Thursday, you were talking r' at cut
back in your own areas, and I commend you for that. Secondly, i would draw you► iu_
the statement in number 13, and I'll quote from it - you don't have to look - where I Vhile
significant, these actions alone will not come close to solving the City's financi•, . crisi. 301
don't want anyone to think that this... It moves us in the direction, but it is very sma. )mpart- .
to the magnitude of the problem that we have to deal with. I've been concerned that, yc.� n_ ow,
we had less than two weeks to deal with a budget that normally would take three or four months
to prepare. I am very confident in the figures that were given to you, and I think the Finance
staff, the Budget Administrator, and all the people that worked with the special team that I pulled
together are comfortable with the figures. They were conservative, and while the fi4,ure of
thirty-nine million is being frequently referred to in the media, please don't take your eyc off the
other twelve and a half or thirteen. We've taken two and a half million off the table, because,
thanks to the diligence of Representative Carrie Meek and other members of our legislative
delegation, as well as our staff, we were able to convert that ten million dollar ($10,000,000)
loan onto the FEMA (Federal Emergency Management Agency) Program to a grant. That takes
a small and onerous part of this away from us, because that was a two and a half million :collar
over a five-year pay out. So, I mean, it really is a ten million savings, but in terms of this year,
it's two and a half million, because you're allowed five years to pay it off. So that was a Sr- n
the right direction. But there's still approximately ten million, in addition to the thir nir at
we have to deal with. It's not going away. I've been concerned that... I wanted to un(' : it
in the report, and I chose not too, because. I thought it was significant enough, and I arti•::,>.__, it,
and that is the capital improvement budget. Because I made very clear to all of you our
City representatives here that, that, too, is a serious question. And given the amount of'A, at
has been going on, I mean, there's just a tremendous amount of staff work that is involveu
reviewing; these issues and trying to come up with numbers, and so forth. I don't have a repot.
for you on the capital budget, but let me tell you what's happened here. And I'm going to ask
Mr. Dipak, any member of the team... Pete, Phil, if I say anything that is not accurate, then,
please, I order you to say something, because I want to be accurate. The way the Ci y
functioned, monies were put, if you will, into a... call it a pot, if you want. You had operati-11.,
money, and you had trust money, and you had bond moncy, and so forth and so on. And the
money was moved around to meet contingencies. And Fw rot giving a blank;t condemnation of
that, because you have issued every year tax amicipation notes, at least for the last several > _-are,
to meet a cash flow need. And occasionally, you will draw money from some of these funds to
temporarily meet that cash flow requirement, much the same as we do in our personal accoun�z ,
and then you move the money back in and secure it, so that it is there for the purpose ocic .nally
intended. Conservatively, about... and it could be more, but I think approximately fifteen milllio.i
dollars ($15,000,000) was moved out of various bond and trust accounts into the .feral
operating budget of the City. That money has to be replaced. That is a part of t; -)runlet
above and beyond. And I'm leery, and I'm looking at the members of the media that I ca.,: 1
hope that they qualify that figure, because I am not saying that is the exact figure. I thip_k t s-, _s
a conservative estimate. In addition, you have contracts that are signed, you have :vjrk i)
progress that has a fiduciary responsibility... a financial obligation to finish those projects, so that
above that figure, there is a need for additional dollars to meet some of those c:-, :ta►
requirements. Suffice it to say that conservatively, we may be looking at twenty million, V.
may be looking at twenty-five million, we may be looking at more. Now, I'm not...
(INAUDIBLE COMMENT NOT ENTERED INTO THE PUBLIC RECORD)
Mr. Stierheim: Well, you have Police computers. How much is left on it? Eight, eight million?
3 October 1, 1996
r,
Chief Donald Warshaw (Chief of Police): Three point...
Mr. Stierheim: How much?
Chief Warshaw: Eight million.
Mr. Stierheim: Eight Million.
Chief Warshaw: But three different projects.
Mr. Stierheim: Pardon me. Stand up, please.
Chief Warshaw: There are three different projects. There is the PC project, there is the power
project for the building, and the MDC project. The three of them total about eight million
dollars ($8,000,000). And most of them, I think all of them are at some... be —nd the
developmental stage. The technology is being developed, the work has been done, and some of
them have come here as having been cash in the bank, ready to proceed. And obviously. }ww,
those capital funds aren't there.
Mr. Stierheim: I don't know what... if those are under contract. I heard this mr•sr:j .g from
Christina...
Chief Warshaw: Contracts.
Mr. Stierheim: ... we have eight hundred thousand ($800,000) out at LeJeune?
Ms. Christina Cuervo (Assistant City Manager): At Melreese.
Mr. Stierheim: Pardon me? Melreese. We have other contracts.
Mayor Carollo: What in Melreese do we have?
Mr. Stierheim: Christina?
Ms. Cuervo: Mr. Mayor and Commissioners, I believe Grant Sheehan called me yestc rday to
just advise me, and I advised the Manager this morning, that there is eight hundred ti:ousc
dollars ($800,000) that were in a deficit on the Melreese Golf Course. We have a contia'A
invest three point nine million dollars in the golf course, and we had three point one million tha,
we got from the Sunshine State Fa.m Pool, I believe.
Mayor Carollo: Uh-huh. f
Ms. Cuervo: And so we're down the other eight hundred thousand dollars ($800,000).
Mayor Carollo: OK. But let's look at it a little closer.
Ms. Cuervo: OK.
Mayor Carollo: On that particular contract, what was the actual expenditure that they presented
to us, that it was going to cost for them to redo that golf course?
Ms. Cuervo: Well, the City was providing the investment.
Mayor Carollo: Well, I know that. But what was the actual amount that they gave us that it was
going to cost, since they were going to manage the...
4 October 1, 1996
i
V
Ms. Cuervo: Three point nine? Public Works is managing the contract for the construction. so 1
would like Wally to answer that. But he's saying it's three point nine million.
Mayor Carollo: Because that contract had a provision that out of the three point nine milli -r- if
they didn't use up, up to a million of the dollars, then they could keep that money and use it in
whatever other projects they wanted to in that park or golf course.
Ms. Cuervo: I'd like to get a copy of the contract, but I believe it was limited...
Mayor Carollo: And this is what... I want to make sure that we only pay what we 1 - to pay
there. And if they did not use the other million dollars ($1,000,000), then we bet_ + )tiate
that again with them.
Ms. Cuervo: I believe...
Mayor Carollo: Because that's a deal that, frankly, deserves a lot more scrutiny, and -vet! :: t
more scrutiny than this Commission can give. And if I have to, and they don't want to negotiate
in good faith with the City... And by the way, we're in the Third District Court of Appea,s )n
that particular project, and I am inclined, if I have to, to call a special Commission meeting with
subpoena powers that this Commission could have, and we're going to get to the bottom of that
whole deal there.
Mr. Stierheim: Mr. Mayor, may I respectfully... I'm a little hesitant. And I understand you
have a very genuine, and, I'm sure, very legitimate concern, and we can address that 1s—'e. I
want to... You asked for some specifics so we... you know, these come to mind. I knew :here
was a six million dollar ($6,000,000) transfer out of storm trust projects that probable wi:
somewhere, and there are also storm... I want to give you a complete list. There are pr•gjec Fiat
you've authorized, that you have approved by Commission action that have not cc!nm d.
Anything that hasn't started, unless it is an absolute emergency, we can strop. So we':; put ti. use
in one category. Those that are under contract, we'll put in another category, and that r,. rt, we
are trying to get out as quickly as we can, but it has been a physical impossibility -en
everything else we're doing, to do that. I am only trying to convey to this boas , his
Commission, this is serious, and it's real. This is not something that, you know, becaus- pec ,� e
cry wolf that it's going to go away easily. That's all I have to say. Now, what we prepared for
you this morning is a refinement of the original 76 items that we gave you on Thursday n:bnt.
These have been reorganized into, obviously, number one, actions that have already been taken.
These are... This is an executive summary, if you will, of what I did yesterday, and maybe with
some other actions that have already been taken. Solutions requiring City Commission policy
direction, that is the next grouping. And I think, Mr. Mayor, with your permission, we should
spend time on each of these. And what I would like, I would like the Commission to agree that
given... I would like to say this. Time is money. This is the first day of the fiscal year. The
longer we delay balancing the budget, the more expensive it becomes to balance. If we iose a
month, then you only have 11 months to solve a 12-month problem. If the figure is .:'xt.,
million, you can simplistically say, well, that's worth five million every month. Now, not all
fees are collected beginning October 1st, so that actions that you take, you know, we have .o
calculate what the revenue stream would be and so forth. That's on the revenue side. ! ,nd
there's a list here of actions that the Commission could take to generate additiona' .. _ver.
And I think the board has a responsibility to do that. Reviewing your collective t tirrain_,_
contracts, and I have done that, makes it very clear that the board must, under the terns 6f 0nse
agreements, endeavor to exhaust any areas where you could appropriate monies befog - u bei; .
messing with those contracts and messing with those terms. So obviously, we have to lock at th
revenue enhancement side of the City. How much can we raise from more aggressive collection
of delinquent liens and fines, and violations and so forth? I am told there are tens of millions,
5 October 1, 1996
r
scores of millions of dollars out there that have not been collected, probably never wili T
collected, but how diligent have we been in going after the collection of those fines, liens, e
cetera? There is a potpourri of activity, and certainly, you know, that's one area. But if we can
collect five million or ten million of those dollars, that's significant in this equation. Now, I
had discussion with some... Well, I mean, I've had frequent discussion with all of the -- 'all,
all, except one who was on vacation -- of the leaders of our various unions. And, by
want to say to them and to this Commission that I've been pleased with their attitud. —1 io ti,
point. They seem to be, to me, very sincerely concerned. They know that they are 1,-_ A tht
equation. They've asked me for the financial data that we used to arrive at our fl es, r
reasonable request. You're entitled to it, anybody is entitled to it. Those figures have and
on their own. And the reason they want to know that is, they want to determine and their
experts, that, in fact, what I claim is a fiscal emergency, is, in fact, a fiscal emergency. I ii-,
confident that their review... you know, they may disagree with this figure or that figure, but
when you get through at the end of the day, these numbers are not going to go away, they're real.
We sent over yesterday the spread sheet and cash... What did we send to the unions yesterday?
Unidentified Speaker: We sent all of our backup... The last report.
Mr. Stierheim: All right. And 1 don't know whether the leaders have had a chance to see it. &,
that was... Was it faxed over yesterday?
Unidentified Speaker: Yes.
Mr. Stierheim: OK. And if there is more information required, there is a list. And they t:; In
expert who is representing them, and we've talked to him, and we will provide tha' , CornlaLiun,
so that they will have time to review that. And I support that, notwithstanding, in n- judgrw.nt,
and I hope in the judgment of this Commission, that we do, in fact, have a fiscal en. y.
And, Mr. Mayor, at some point, and I am not suggesting that you do that today, bu ,ne
point, I think the Commission should formally establish the fact that we have a fiscal emc;rgc,__
That action would empower your staff, at your direction, to meet with the representatives of the
various bargaining units. Even in advance of your declaration, it is my intention to meet with
them, because at the table, there are two ways that we can go. Number one, if the leaders of the
unions are, indeed, convinced that the numbers are real and that the City does, indeed, face a
very serious fiscal emergency, then they are in a position, unilaterally or bilaterally, depending
on how the discussions go, to assist the City in meeting that problem, short of opening the
bargaining agreements. I would prefer that this be a cooperative initiative and not a combativ,,
one. It can always be combative, that's easy. We could start that right now, with a slip of tht
tongue, but I would prefer that not happen. And so, I guess on that discussion, Mr. Mayor, that's
the way I'd like to proceed. And at some point, maybe at the end of this meeting or now, you
determine how... Let me ask this question. On the capital side, how soon can we have the capital
report comparable to the report that we gave the Commission on the general fund budget? Don't
say something we can't lave with, now.
Unidentified Speaker: I think about a week, or maybe more.
Mr. Stierheim: A week. I was hoping for a little more speed.
Unidentified Speaker: We can go over there after the meeting today and try to ascertain the...
Mr. Stierheim: All right. I will report to you. The acting director says a week. I'd like to move
it a little quicker than that, if it's possible. It would be nice if you had that in hand before you
perhaps made your declaration.
Mayor Carollo: Mr. Manager.
511
October 1, 1996
scores of millions of dollars out there that have not been collected, probably never wili T
collected, but how diligent have we been in going after the collection of those fines, liens, e
cetera? There is a potpourri of activity, and certainly, you know, that's one area. But if we can
collect five million or ten million of those dollars, that's significant in this equation. Now, I
had discussion with some... Well, I mean, I've had frequent discussion with all of the -- 'all,
all, except one who was on vacation -- of the leaders of our various unions. And, by
want to say to them and to this Commission that I've been pleased with their attitud. —1 io ti,
point. They seem to be, to me, very sincerely concerned. They know that they are 1,-_ A tht
equation. They've asked me for the financial data that we used to arrive at our fl es, r
reasonable request. You're entitled to it, anybody is entitled to it. Those figures have and
on their own. And the reason they want to know that is, they want to determine and their
experts, that, in fact, what I claim is a fiscal emergency, is, in fact, a fiscal emergency. I ii-,
confident that their review... you know, they may disagree with this figure or that figure, but
when you get through at the end of the day, these numbers are not going to go away, they're real.
We sent over yesterday the spread sheet and cash... What did we send to the unions yesterday?
Unidentified Speaker: We sent all of our backup... The last report.
Mr. Stierheim: All right. And 1 don't know whether the leaders have had a chance to see it. &,
that was... Was it faxed over yesterday?
Unidentified Speaker: Yes.
Mr. Stierheim: OK. And if there is more information required, there is a list. And they t:; In
expert who is representing them, and we've talked to him, and we will provide tha' , CornlaLiun,
so that they will have time to review that. And I support that, notwithstanding, in n- judgrw.nt,
and I hope in the judgment of this Commission, that we do, in fact, have a fiscal en. y.
And, Mr. Mayor, at some point, and I am not suggesting that you do that today, bu ,ne
point, I think the Commission should formally establish the fact that we have a fiscal emc;rgc,__
That action would empower your staff, at your direction, to meet with the representatives of the
various bargaining units. Even in advance of your declaration, it is my intention to meet with
them, because at the table, there are two ways that we can go. Number one, if the leaders of the
unions are, indeed, convinced that the numbers are real and that the City does, indeed, face a
very serious fiscal emergency, then they are in a position, unilaterally or bilaterally, depending
on how the discussions go, to assist the City in meeting that problem, short of opening the
bargaining agreements. I would prefer that this be a cooperative initiative and not a combativ,,
one. It can always be combative, that's easy. We could start that right now, with a slip of tht
tongue, but I would prefer that not happen. And so, I guess on that discussion, Mr. Mayor, that's
the way I'd like to proceed. And at some point, maybe at the end of this meeting or now, you
determine how... Let me ask this question. On the capital side, how soon can we have the capital
report comparable to the report that we gave the Commission on the general fund budget? Don't
say something we can't lave with, now.
Unidentified Speaker: I think about a week, or maybe more.
Mr. Stierheim: A week. I was hoping for a little more speed.
Unidentified Speaker: We can go over there after the meeting today and try to ascertain the...
Mr. Stierheim: All right. I will report to you. The acting director says a week. I'd like to move
it a little quicker than that, if it's possible. It would be nice if you had that in hand before you
perhaps made your declaration.
Mayor Carollo: Mr. Manager.
511
October 1, 1996
Mr. Stierheim: Sir.
Mayor Carollo: Would your staff be ready for us to meet, so that this Commission cap. "scu,
declaring a true fiscal emergency for the City of Miami Friday, or would you need mayb, he
weekend, if you prefer?
Mr. Stierheim: Well, as far as I am concerned, professionally, you have a fiscal emergency.
Mayor Carollo: Well, I know that we do, but my direct question is, I mean... That's not in
question now, your position on this.
Mr. Stierheim: That's correct. I mean, further evidence would come from the capital s, ie. And
I think if the representatives of labor agree with the figures substantively, I mean, you knoc.,
what do we have to talk about?
Mayor Carollo: The only thing in question right now is that your staff needs a little mc..,. ::gyp...
Mr. Stierheim: Without question.
Mayor Carollo: ... to get some of the additional numbers on the capital side. I thinl ihc. E we
have some numbers already. They are not all the numbers that we have, but I think, at least I
would hope so, that in two more days, we can get the bulk of the numbers that w.. have
outstanding out there. At the same time, it might give you a little more time to sit down with
some of the union people and give them the whole picture. Therefore, unless you hi�- -e any
objections, I would like to look at Friday as the day that we would meet.
Mr. Stierheim: Mr. Mayor, I think that's fine, with the understanding, perhaps, that Lly
Wednesday... I know you need at a minimum, 24 hours notice on an emergency meeting.
Mayor Carollo: That's correct.
Mr. Stierheim: If by the close of business Wednesday, I could tell you if I think we are
sufficiently ready. If not, I may ask you to extend it to Monday.
Mayor Carollo: OK. Well then let's wait 'till Wednesday...
Mr. Stierheim: Thank you, sir.
Mayor Carollo: ... so that you can let me know. And then we'll either do it Friday or Monday.
Commissioner Plummer: Let me ask a question. Merrett, explain to me the difference between
declaring a fiscal emergency... What does that do for you, if we don't declare? I mean, you're
saying you are going to talk with the unions and you're going to talk with other people. Is there
a significant reason for declaring such? Is it in the Charter? Is it legal? L.
Mr. Stierheim: Let me respond directly to that, and I would read to you from two of the
collective bargaining agreements, which I read last night. The first... they're quite similar. Fi.-,-t,
from the FOP/AFSCME, Fraternal Order of Police AFSCME (American Federal, State, County,
and Municipal Employees) contract, and I quote: "The City hereby, knowingly, intelligently and
unequivocally," which is a heavy commitment, "waives its right not to fund"... not to fund. You
waive your right not to fund any year of this agreement. You don't have the right, then, not To
fund it. You've waived that right. That's what that says. The only exception to this .. aiver is in
the case of a "true fiscal emergency," quote/unquote, which is unanticipated at th.:; time. In
7 October 1, 1996
Y
order for the City to establish a, quote, "true fiscal emergency," so as to lawfully not fund any
year or years of this agreement, the City must demonstrate that there is no other reasonable
alternative means of appropriating monies to fund the agreement for that year or years. Which is
why I said to you earlier that you have a responsibility to took at the revenue side of the , 's
budget. How can you enhance revenues? The question that labor will ask is, "Have )
exhausted all remedies?" And obviously, here, we can get into arguments and litig... at,
you know, that's why I would prefer to avoid that course. Although, let everyone t rn'ers.. It
the end of the day, if we haven't addressed this problem, you may have to get into t
contracts. I'm not recommending that now, but that may be at the end of the day, if .,thing
else fails, may be what you need. Now, I can read you from the fire fighters.
Commissioner Plummer: Basically the same.
Mr. Stierheim: Yes, both are pretty identical. Now it goes on. It sort of gives it back and forth.
One of them says... And you should be aware of this. Maybe it's good that this is being done.
"Notwithstanding any other article of this collective bargaining agreement, the City hereby
specifically agrees that any disputes concerning the application or interpretation of the funding
of the contract will be resolved through the grievance arbitration procedure of the agreemer+ If
an arbitrator determines that the City has breached its funding requirements undo: ::is
agreement, the parties jointly confer upon the arbitrator jurisdiction to order the City
appropriate the necessary monies to fund the agreement." Well I can tell you, there's a ko+ .;r
case law, that, notwithstanding what is in collective bargaining agreements, the ultima'� %,r
is with the people, and the ultimate power is with this Commission, who are tl_.. ted
representatives, and the ultimate power is in your appropriation power. You mu}t apprua `e
the money. If you were to adopt an amendment to the budget that said, "We have {fifty million
dollar ($50,000,000) shortfall, we have two hundred million dollar ($200,000,000) gen(, und,
we're appropriating one hundred and fifty million dollars ($150,000,000), and Mr. h' -alter,
manage the City," Mr. Attorney, I'd have to manage the City with one hundred and lift) . FIion
dollars ($150,000,000). And we'd have to come along like the "Grim Reaper" and `y
make... I mean, make some devastating cuts in City operations. Am I correct?
Unidentified Speaker: Correct.
Commissioner Plummer: Well, regardless of the number, aren't we basically saying that,
anyhow?
Mr. Stierheim: Well, but it can be a combination, it seems to me, of many things. I.evenu_
enhancements, and I... You know, we're going to talk about some of these alternatives as we go
forward here. As we chip away... I mean, look at this as a piece of stone and we've got :J ch.,P
away at it. And every way that we chip, all of these actions that I took last night a;c- beginn'
the process, chipping away.
Commissioner Plummer: Yeah, but my point, Merrett, is this Commission is not tellho, yo►►, . •)u
might get into balance. This Commission has no choice but to tell you, you've got ;o get ins
balance.
Mr. Stierheim: That's correct.
Commissioner Plummer: And predicated on that, the revenues that you can find, the other things
that you can't find, you've got "X" number of dollars to work with. And we are saying to you,
you've got "X" number, it's got to work. So we're saying to you, in effect, do as you said, with
one hundred and fifty million ($150,000,000). 1 don't think we have much choice.
Mayor Carollo: There is no choice, Commissioner.
October 1, 1- j6
t i
Commissioner Plummer: That's what I am saying.
Mayor Carollo: Either we do it or the State of Florida will do it for us.
Commissioner Plummer: Absolutely. Absolutely.
Mr. Stierheim: I would recommend at this point, Mr. Mayor, that we... Unless there .s some
question on the actions that I've taken, and Commissioners may have a problem witl of
these things, I don't know, but if you do, I'd love to hear from you either directly C ' _. he
dais. But I'd like to go into solutions requiring City Commission policy direction. ° s<<._.'
here. We've not been able to crunch all the numbers, so if you look at one of these. s and
you. say, "How much can we save? How much can we collect from all of these unpai, _s ?nd
bills?" and so forth, I can't give you a figure. We'll give you figures on some things that we
know about but... So I would call on the department directors or my staff to be as forthcoming
as possible if there are any estimates on dollars. I guess, Mr. Mayor, with your permission, I'll
talk about the first item, Tax Anticipation Notes. Dipak, how many years have we issued Tax
Anticipation Notes?
Mr. Dipak Parekh (Deputy Director/Finance Department): Beginning in 1989.
Mr. Stierheim: Beginning in 1989, for the last seven years, the City has issued Tax Anticipation
Notes. And I have already explained why that's necessary. I would say that this year, the
situation is a little more serious. I have been told that... The recommendation is for twenty-five
million? The recommendation is for twenty-five million. When I walked in the door upstairs, _t
was for fifteen.
Commissioner Plummer: What was it last year?
Mr. Stierheim: What was it last year? Twenty. Now, let me talk about those bonds. This is a
short-term obligation. It is replenished as ad valorem tax revenues received. Clearly, the budget
calls for approximately one hundred million dollars ($100,000,000) in ad valorem revenue. It's
about 50 percent of your general fund revenue. So there's absolutely no question that these
notes will be paid, in my mind. Is there any question in anybody else's mind?
(INAUDIBLE COMMENT NOT ENTERED INTO THE PUBLIC RECORD)
Mr. Stierheim: Yeah, I mean... I'm sorry. Given the somewhat doom and gloom situation we're
in that I've talked about, we still must float those short-term notes. And I will call... I will be
asking the Commission to adopt the ordinances or whatever we need to get that done, shortll.
Are there any questions on that?
Mayor Carollo: None, whatsoever, on that.
Mr. Stierheim: OIL. How would you like to proceed, Mr. Mayor? Do you want to go item o y
item here?
Mayor Carollo: Mr. Manager, I think that would be the best solution, to go, item by itt.m. ':r
persons that we are going through are the ones that require policy direction f_cm th.s
Commission to you. So I...
Mr. Stierheim: Well, the second item is one that I think we have time to study and I would...
What I... I want to just clarify one thing. As we go through these items, and I ask, please, if there
are Commissioners that, you know, are just against something because of the limitation of time,
9 October 1, 1996
well, there are so many roads that we can go down. I don't want to go down a road that. yo:,
know...
Mayor Carollo: That's a very good point, Mr. Manager. We need to get to the bottom ol.
this. If there are any items here that any member of this Commission has a problem v, r. is
the time to speak, not after staff spends countless of hours, countless time trying t ok
solutions and then one of us decides that we didn't want it all along in the first place. I ti,..... tl
if any member of this Commission has a problem in studying or giving instructi.. to tt:e
Manager on any one of these items, now is the time to talk about it. I frankly don't give a . - )t if
there are some out there that have a radio program that are going to be waiting, just for us to give
the Manager instructions on something, to start attacking. Because frankly, those were the
people that were part of the ones that were responsible for the mess that we're in. They were the
ones that were praising what was going on here at City Hall. So they are not going to any part of
the solution for the mess that we have here.
Commissioner Plummer: Mr. Mayor, I hope that we understand that when... And I understand
what you're trying to do, Merrett. You're trying to say, "Let's go immediately with those that
everybody is in concurrence with, and let me know the ones that you're not in concurrence
with." My only concern... really, it's not a concern. When you... Let me give you an example.
Increase fees where feasible. Now, you know, I know we've got to increase fees. 13Lt I'm n,. t
going to sit here and not know how much each fee is going to be raised. Increase the alarms,
towing, certificates of use, I think, fine. You can increase those fees. But you can't ask me or
any member of this Commission to sit up here and give you carte blanche, to say you car.
whatever ,you want to do. I think that... You know, those are the areas that I'm going to tell you,
yes, increase, but you're going to come back and tell me before I vote how much you're , ping to
increase.
Mr. Stierheim: Commissioner, thank you for saying that and you reminded me of sornt:i ;ing that
I wanted to say even stronger, building on what you said. Just because you authorize us to go
off, does not take away, "A", the due process, the right of the public to be heard, and the right of
this Commission, after testimony and so forth, to make a contrary decision. I respect that
process. I'm riot asking you to sign a paper here. I guess I'm saying, colligately, given the
enormity of what we have to do, if there is something that just is offensive to you right off, kind
of let us know, because I'll... we'll spend our time in areas that we think are more compatible
with your direction.
Commissioner Plummer: Well, on the other hand, Merrett, for example, the tax anticipatt
notes, I'm ready, for twenty million dollars ($20,000,000), which you stated, I'm ready t,, vote
on that now or at a later time, because that is definitive. It's twenty million is what ycu'rr
asking for...
Mr. Stierheim: Twenty-five.
Mayor Carollo: Twenty-five million.
Commissioner Plummer: Twenty or twenty-five?
Mayor Carollo: Twenty-five million.
Mr. Stierheim: Twenty-five.
Commissioner Plummer: All right, OK. Whatever that is, we know. And we know that the
funds are going to be eventually available there to pay it off. The only question, Bill, I ask o'
you, did you take the five percent nonpayment in there, when you talk about the hundred million,
as far as the ad valorem?
10 October 1, 1996
PAN
Mr. Stierheim: Yeah, there's a million...
Commissioner Plummer: There is always a five percent delinquent.
Mayor Carollo: Sure.
Mr. Stierheim: You only collect ninety-four million ($94,000,000). There's a lion .,at
would be a shortfall
Commissioner Plummer: OK, it's five percent. OK. But the point I'm trying to make you, I
am ready on that. You've definitively said it's twenty-five million dollars ($25..V, 0,00'u).
We've done it in years in the past, we've got to do it now, and I'm ready to ;t; ;n that `
immediately, if or when you're ready to bring it back. The other areas that are not th-_ I.-linitive
in telling me exactly are the areas that... those three processes you just talked about, duc process, ,
public hearing and this Commission making the final approval. I would only say to you, hL,, I
am totally opposed to this particular thing, and I think that's what you want to hear.
Mr. Stierheim: 'That's what I do.
Mayor Carollo: Well the bottom line, Commissioner, is that there is a due process that we have
to follow by Charter or City Code. And on each and every one of these, basically, we are bound
by either the Charter or the City Code to have this Commission take a vote on it. What we're
doing here is giving directions, policy directions to the Manager so he could study each ar_
every one of these items. Then he will come ruck to us and tell us, if you increase this fee '
much, so much, so much, you will save or bring into the City revenue funds, "X" amok:,,
dollars. And then it's up to us to decide how much of that increase that we want to apprc:,. ,. n
not. But what I think we're all saying here is that there's some areas here that we k_ .`w tl� .o
matter what tile recommendation is, we're still going to be saying no. 'Then let s _.ot play
around, and any one of us who has a problem, to put it right on the table.
Commissioner Plummer: Well, there's another thought there, also, and that is that I think that
the Manager has got to know that if a majority of this Commission says, "We don't like that,"
whatever that revenue was anticipated to raise is going to have an effect on the remaining portior
that, that's got to raise to offset that which was not passed.
Mr. Stierheim: We'll find it somewhere else, correct.
Commissioner Plummer: So that is a very, very crucial point.
Commissioner Regalado: Mr. Mayor.
Mr. Stierheim: The next...
Commissioner Regalado: Excuse me.
Mayor Carollo: Commissioner, go ahead.
Commissioner Regalado: Yeah, I do have a problem with the solid waste fee increase.
Commissioner Plummer: Don't we all.
Commissioner Regalado. I think that this Commission and this Mayor will first look into other
things before penalizing or punishing the residents of Miami. And on that question and that
11 October 1, 1996
issue, I'd like to ask you on the general increase of fees. I heard that the Building and ZU..
Department is or will be increasing fees. If we are to bring more business into the City of P f ia.
and more construction so we can have a base, a tax base in Miami, are we now, with( the
knowledge of this Commission, are going to... I just want to know if we are going to increa.c
the fees for the Building and Zoning Department now.
Mr. Stierheim: The question is, are we going to agree...
Commissioner Regalado: Yes.
Mr. Stierheim: ... to raise the fees?
Commissioner Regalado: No, increase. If we're... Are we going to increase? I heard that s�
members of the staff were discussing the possibility of increasing the fees for Building and
Zoning permits.
Mr. Stierheim: I think, you know, everything is fair game. If that is a... Carlos? I= d-at's a
viable...
Mayor Carollo: I think that's the bottom line. Every single fee that this City of Miam: (.n,):-gcs
now is a fair game to study and look at increasing, if we can.
Mr. Carlos Smith (Assistant City Manager): Commissioner, Mr. Mayor, we have looked at that
as an alternative to increase revenues. But as you know Mr. Mayor, we cannot increase or
change the fees unless the Commission approves them.
Mayor Carollo: That's correct, and this is what I've stated before.
Commissioner Dunn: Mr. Mayor.
Mayor Carollo: Commissioner.
Commissioner Dunn: Mr. Manager, in regards to the, perhaps, anticipated tax notes increase,
could perhaps you give a minimum and a maximum, in the event that, perhaps, we could have a-
option? I know that we're going to probably have to do something. But in some ,f thcs;,:
situations, could you give us - I know that's additional work - but like a minimum that we c,)u d
live with and a maximum?
Mr. Stierheim: Certainly.
Commissioner Dunn: Do you understand what I'm saying?
Mr. Stierheim: I mean let's take the first one, which I think is a major one and I would... at some
point will study. With all due respect to Commissioner Regalado, I think that's an area, you
know, when we talk about solid waste and collection, the fee schedule for the City is more than
50 percent below what your neighboring cities are, what the County is and so forth. And I
realize this is a...
Commissioner Plummer: And we give more service.
Mr. Stierheim: ... and you give more service. In the County, I pay, I believe, three hundred a.aJ
fifty-five dollars ($355). You pay one hundred and sixty ($160). I get one trash c0e,.tio:! a
year, and if I want more, I pay for it.
12 October 1, 1996
Commissioner Plummer: Coral Gables is four -sixty.
Mr. Stierheim: You give weekly trash collection. So the service level is much high:-r L m,
expensive for less than half of the fee. I'm not here making a case for that, but I will sell 'at
if you... For example just to give you a rule of thumb, if you were to double it, that's tc ni,_
dollars ($10,000,000) in additional revenue, as I understand it. So you could say, well, 11 g:
up 50 percent as opposed to 100 percent. All right, that brings five million ($5,000,000) to the
table. We could do that. Any multiple in the savings can be calculated, and the Commission,
obviously, is at liberty to adjust, to do whatever it chooses.
Mayor Carollo: Well, let me say this so that we could try to move along. The last thing that this
Commission wants to do is to increase any fees to the residents of Miami. They are the ones,
frankly, that can least afford it, and have been the ones that have paid the biggest price, will Md
up paying the biggest price, and the ones who were least responsible for this whole mess that we
have before us. But what I am saying here is simply this. That once we've explored es,ery
single other avenue of either bringing revenue to the City of Miami or reducing expenses, end if
we still have a shortfall, then this Commission could either take the decision of being gc;;_ 2!-ys
and saying, "We're not going to raise any fees, and let the State come in and take v i :ever," or
"We're going to have to raise fees," simple as that. There is no easy solution out of thhis. I will
wait as a last resort before I will go to the residents of Miami and let them know that v e have �,m
choice, if it comes to that. And I think, unfortunately, it is going to come to that. W: 're going;
have to go to the residents of Miami and increase some fees; hopefully, by not much. I-Iopefull j .
it will be for a short time. But when you are looking at a potential sixty million dollars
($60,000,000) that we have to find in a budget of two hundred and seventy-five million, you just
can't pick up the money like if you have manna falling from heaven. There is not going to be an
easy solution. Now, if there are those out there that want to come out at me, personally, and put
all the blame on me a year down the line, so be it. You know, frankly, it's either we take the
actions that we have to take as true leaders or there is not going to be a City left. And then all
you people out there that are going to be complaining could then go arguing with the State of
Florida. And frankly, Mr. Manager, talking about the State of Florida, since... They have a lot at
stake in this, because if this Commission does not take the actions that we must take to make this
City solvent, then they will be the ones stepping in. I think that it is appropriate for us to have a
meeting with the Governor and his staff to see if there are any funds that the State of Florida can
find for the City of Miami either in direct grants or in long-term loans that they can give us.
Mr. Stierheim: I would say, also, that the leadership of our Dade County delegation would be
responsive. And as I've told you, Mr. Mayor, I have spoken personally to the Governor, a:.d Pc
is concerned, and, I think, has a supportive attitude. So I will be happy to follow up on that...
Mayor Carollo: Thank you.
Mr. Stierheim:... coordinating with your office.
Mayor Carollo: If you would...
Mr. Stierheim: I would.
Mayor Carollo: ... as soon as possible. I think time is of the essence in that. Vice Mayor.
Vice Mayor Gort: Mr. Mayor, I think it is important for people understand, this is a process that
has been going on, like Merrett says, for a long time. It is not going to be an easy solution, b.2:
what I would also like to see, Merrett, when you put this comparison together, also, i.,
structuring the new fees, compare it with other cities, just like you did with the waste. i think
that it would be important that we have the comparison of our fees with other cities bccaus-t
13 October 1, 1996
this might have been a problem that we've had for a long time, and nothing has been done about
it.
Mr. Stierheim: I will. And keep in mind also that a... You know, the timing of this could 1:ot
have been worse. I said this Thursday night. I mean, you know, in some respects, it's very sad,
but almost propitious that it happened when it happened. Because if it hadn't happened, I don't
think this Commission would have been sufficiently informed - you had not been informer', in the
past. - as to how serious this situation was. But the way it happened after you adopted it on fir:.(
reading and so forth, as I said Thursday night, you know, your flexibility is limited. A lot of the
solutions that we might have considered, if this had happened in May or June, or, y,;u kaow,
earlier, are put off for a year. The tax notices are going out, so anything that rr:ight have
happened in that area... and I'm not just talking property taxes. I mean, you have ver; little
flexibility there left, anyway. But there are other fees and services that could be put on,
the same as garbage fees, and all other. kinds of fees that are put on. You adopt fees, they gc"
that notice. Wel), the fact that the notices are going out and October 8th is the deadline, their is
no time to put anything this year, so that goes off a year. Had we had the opportunity to do that,
I think the situation may not have been quite as critical as it is now. We've got to buy tilne +o
get through the year, so that next year, you can bite some of those bullets and affect the Iong-
term solution. I mean, there is a question of buying time here, as well, unfortunately.
Mayor Carollo: Well, what we need to look at and realize is that the immediate solution is
approximately sixty million dollars ($60,000,000) that we have to find for this year. The
solution for the following years is that we have to find between twenty and twenty-five million
dollars ($25,000,000). And that's the approximate amount, closer to twenty-five. So at least for
future years, it's not as bad. It's not that we have to find sixty million dollars ($60,000,00'�
every year. The bottom line is to see if we could get off of this particular issue, solid waste f
so that we can move on to the others.
Mr. Stierheim: We'll study it, Mr. Mayor.
Mayor Carollo: Well, if I am correct, we have until January before the...
Mr. Stierheim: Notice, first notice.
Mayor Carollo: ... notice will be sent out. I think, definitely, between now and December, we
will know where we stand on this particular issue.
Mr. Stierheim: Correct.
Mayor Carollo: So I think the time that we will make a decision on this will be no later than
December, and that will give us ample time, in case we do have to raise these fees, to make an
intelligent decision at the time.
Mr. Stierheim: Thank you, sir. We will initiate that study and report back to you. On th:.
second and third items... And I neglected to say that those union leaders that I've spoken with
have indicated that in addition to the items that we've endeavored to put down here, trey Lave
other ideas and so forth and in our discussions, hopefully, we can share those thoughts and see h
that will help us. On the pension funds, I do want to talk about that for a minute. The... `V,,,"I
give you a separate report on the historical growth of the administration of the pension funds.
You have two boards, two administrators, two actuary... I don't know if any of them are the
same. The Gate settlement provided that they could do things together, or they can stay apart.
And to be honest to you, I have not really gone into those operations. They are not under me to
administration. In one fund, it is has gone up over 400 percent. In another fund, it's over 300
determine. But there has been a steady growth over the last ten years in the cost of
14 October 1, 1996
percent from where it was ten years ago. And I'm sure that some of those expenses are
legitimate. I'm not here giving any blanket criticism. But one of the options that I think the
Commission might want to consider, and again, it may require agreement among the parties, , to
include pension fund... include administrative cost within the pension funds. Right now, they
are paid separately. That is a... That's over a two million dollar ($2,000,000) ticket each year to
the general fund. In addition to your pension contributions, you pay the cost of tha.
administration. So... And I might say that the pension boards are largely controlled by
representatives of the bargaining groups. As I understand it, the Manager has one appointmew,
each union has two, and then you must select the other four, two each from each uniop so that...
I mean, let's face it. The unions control those pension boards, and that's in the court decision,
and the way it operates.
Commissioner Plummer: Isn't there a provision in the Charter in reference to so many mills of
our ten mills that are dedicated to pension?
Mr. Stierheim: No, no. You got off of an allocated millage. You had one prior to tLe ten mill
cap. When the ten mill cap went off, you moved away from that. You used to have that
Commissioner Plummer: Yeah.
Mr. Stierheim: You used to have a separate millage for, I believe, for that requirement. I think
I'm correct there.
Commissioner Plummer: No, it wasn't separate. It was part of.
Mr. Stierheim: Part of, but it was broken... You know, you identified it with a certain millage.
Commissioner Plummer: That's correct.
Unidentified Speaker: That millage was rolled into the general fund...
Commissioner Plummer: And that was a major problem also.
Mr. Stierheim: Well, obviously, the three points there... I should have numbers on these. I had
them on the first one. But meet with the unions and the pension boards. I want to meet with tL.
pension boards and their administrators, and I guess we have an actuary and they havt an
actuary, and, you know, somehow we've got to sit down and talk about these things, and see if
there is anything that can be done. The possibility of having your pension fund absorb those
costs, that would... I think that would put an automatic monitor, for whatever it's worth, on
administrative costs. Audit the current pension programs for saving opportunities. If we can
turn the page, I've already covered the next item, Mr. Mayor, and I think everyone understands
that. The next one is, consider/negotiate the deferral of a four percent January cost of living
adjustment for all employees. What is the...
Mr. Dipak: Three point eight million.
Mr. Stierheim: How much?
I Mr. Dipak: Three point eight.
Mr. Stierheim: How much?
Mr. Dipak: Three point eight.
is
October 1, 1996
Mr. Stierheim: Three point eight? Three point eight million is the cost of that four percent
adjustment. I mean, given what we have here. I mean, I think...
Mayor Carollo: This three point eight million, what is the actual savings for this fiscal year
though? It's not going to be the three point eight million for this fiscal year.
Commissioner Plummer: Yeah, sure, it is.
Mr. Stierheim: Three point eight million from January through September.
Mayor Carollo: From January to September, OK.
Mr. Stierheim: So that next year... I mean depending on what you do...
Mayor Carollo: It will be more then, because we'll have a full year.
Mr. Stierheim: I mean, the annualized cost would be close to five million ($5,000,000), over
five million. Freeze or cancel '96-'97 merit increases to the extent that we are able. Again, this
is a discussion, I think, would have to take place with the labor leaders, and I have already done
it for those people under my jurisdiction.
Commissioner Plummer: Merrett.
Mr. Stierheim: Sir.
Unidentified Speaker: Those are actually the anniversary increases, not the merit increases.
Mr. Stierheim: Anniversary, pardon me. Anniversary increase, I misspoke.
Unidentified Speaker: That's worth about a million -four.
Mr. Stierheim: That's worth a million four, I'm told. I wish we had a mike down there so y,
people could be heard. I don't know if, once again, we can evaluate alternative early retirement,
rehire programs. If... I mean, the way that would work is that if there's an employee that's
eligible for retirement, we could work out an arrangement where the employee retires. He is
entitled to his pension and so forth, and then is rehired. But then, we don't have to make
continued payments to the pension fund. I mean it has to be negotiated.
Commissioner Plummer: We did that last year in the Fire Department. The stop... the drop
program.
Mr. Stierheim: I know. I don't know if there is any more employees in that category and if that
can save money. We've put everything on the board that we could here that might. There is a
possibility that that, I am told, might generate some dollars. Again, that's an item that I will
discuss with.. unless... you know, with your blessing.
Commissioner Dunn: Mr. Manager.
Mr. Stierheim: Sir.
Commissioner Dunn: What's the difference or what's the impact in regards to freeze versus
cancel?
Mr. Stierheim: Well "freeze" means that you can thaw it. And at some point...
16 October 1, 1996
P
Commissioner Dunn: For how long?
Mr. Stierheim: That's up to the powers that be. That's up to the Commission, in m Agn r.
You know, what you take away, you can give back. You can put a life on it, yoL ar y...
mean this can all be bargained. You can say we are going to hold it for 12 mon. • and then
we're going to reevaluate it. If we're out of our crisis and we can afford it -- and I h-,'e always
been a champion for employees getting the cost of living adjustments and reas, nable
recompense - then do it. But if you can't, you can't.
Mayor Carollo: Well, Commissioner, it's best to establish a freeze for the meantime and future
raises than to have to look at five, ten percent decreases in salary. There is no easy solution.
Mr. Stierheim: The next one is today covered by the bargaining agreement. You know, it's very
nice to have. But I can say that it's very expensive, too. It requires a tremendous expansion in
your fleet for police vehicles. And I think there are thresholds that one might consider.
Certainly, those police officers that live within the City is one thing. Those that live outside the
City is another. Those that live in Monroe County and Broward is another, and those that 1i\-e in
Palm Beach are another. I'm told there's some police cars that are driving 80 miles each way, to
and from, I don't know how many. Probably a very small number, and I don't neeJ -.o
exaggerate it.
Mayor Carollo: Well, the worst part is, Mr. Manager, is that because of breakdowns of vei�icles,
vehicles that have been in accidents, we are having situations where we don't have -,uff'ci at
marked units for police officers to go out on patrol, and you're having situations wherr -, _e
having to be forced to put two officers to a car, many times. And that shouldn't be the sitL... tn.
Mr. Stierheim: I mean, clearly, it's an area that needs some study, and if it can be modified to
make it more cost-effective, then I think we should consider it. One of the things that I've put in
my memo, you may have noted, is that we develop some type of a fee which the employee
would pay in lieu of having to go out and buy a car to get to and from work, which is normally
an employee's responsibility, that there might be a fee, if the employee opts to take the City car
home, that offsets the cost of the utilization of that vehicle during the off hours, to go home and
back. I mean, you know this is something we can study. It's an alternative. It doesn't impose a
hardship on an employee who otherwise might have to go out and buy a vehicle. I mean there
are different ways this thing can be approached. Well, I've already covered the next one I
won't kick that anymore. Close obsolete public facilities. We... I have a recommendation
shut down Bobby Maduro Stadium. That is a cost liability, very little events going on in `'•:ere.
And I might add that, that land is also a great asset to the City. It's about 18 acres. DifPercnt
proposals, through the years, as I understand it, have come before this Commission. But
somewhere else in here, we talked about assets and what might be done, so some savincys oan
come from there. And if there are any other facilities that we've got that we are not u:,:ng ►:_
are a cost center for us, then I think we should examine them. Let's see. Modify the c:.i,.*rer!.
level of solid waste service. This kind of goes along with the study that we would do on thy. 'ees.
You know, when I was with the City - and I'm going back in the stone age - we were still
collecting with these clam buckets. And you go along and you look in the right-of-way, and you
see a hole two feet, three feet deep, a tentative liability. Frank Rollason will tell you that, you
know, if somebody goes out there at night and falls in that hole, and breaks a leg, you are going
to get a lawsuit. It then requires Public Works to go out and try to fill the hole, and then in a
little while, it's gone again. There are modern technologies for the collection of trash and
garbage... I mean garbage... both, really. I mean, maybe this belongs in the long-term side, or
whatever. But there could be modifications. Maybe instead of every week, we pick it up every
two weeks. Maybe we zone the City and we provide different levels of service. Because in
some areas, you know that the right-of-way, obviously gets inundated with trash and so forth. In
17 October 1, 1996
other areas, it's more governed, I don't know. I just think it's an area that we can study posse, iv
towards "A", improving the effectiveness of the service; make it less... more cost effective, ar-1
iconceivably save some money.
Mayor Carollo: Mr. Manager, I don't know if this would be the appropriate place to c id _ ;1e
following, or if you have it somewhere else in your recommendations, but I think that ol, th,
things that we need to look at, also, to try to further reduce cost in the Solid Waste Del tn.:,;: is
to truly do a study to see how much monies this City can save if we privatized solid NA _- 6te. And
then we could always come back and use that as a bargaining tool to deal with the Solid Wa.;te
Union. But I think that the time has come that we have to look at that possibility, also.
Mr. Stierheim: I think I had that in the long-term. Your current bargaining agreement provides
that subject. That option is not viable to this Commission.
Mayor Carollo: For another year or so, right.
Mr. Stierheim: Until, 19... I believe the end of 1997, which would be the end of this fiscal year.
Mayor Carollo: Well, I think that regardless, we should begin looking at hard numbers on tha t
right away, because at least it could give us an indication of how much we could save for
next fiscal year. So that's one that I would like for, you know, the Administratiop to
looking at carefully.
Mr. Stierheim: All right, sir. Thank you. I don't know, and I am so new that I'm a littit ;..:itant
to... I get very mixed reactions on the NET (Neighborhood Enhancement Team) prj��ar_i, and
I'll just say that openly. I mean, I get some people who say that it's holding the City fher,
and that the people love it and so forth. And I have other people say that two or three of the
centers are functioning effectively, and the others are not. I don't know what the case is. I have
not been out into those centers. I don't know what the feeling of the Commission is on it.
Maybe I'm stepping on something I shouldn't get on. But, you know, I think you really need an
honest to God analysis of that and from a cost-effective standpoint, is it really doing the job that
the Commission intends that it be done? And I don't want to start a debate, and I don't mean to
stifle discussion but I can tell you we can get opinions on both sides, because I've had them
presented to me by some pretty intelligent people.
Mayor Carollo: Well, this is, again, one of those cases where it's not just in black and white.
There are some services that the NETs have provided that have been very worthwhile At t2._
same time, there are many areas that the NETs have been very deficient in. I think r173t 'ne
decision that we need to make as a City is, what is the cost that the NETs are costing uc We
need to get a hard look at those numbers and then decide if those numbers are worth-�hile. to
keep in our budget under the times of crisis that we have now.
Mr. Stierheim: I mean I... You know, as a matter of government philosophy, if you wilt, I'� _
always loved government close to the people, so that the concept of having a center, the conc�,r c
of having police out on the streets in the neighborhoods interacting, I mean, that has always been
a win -win, I think. So there is a part of me that says this is very good. There are costs
associated with the NET centers that I think are inescapable. Some of your code enforcement
activities, you know, some of the... certainly police and some of the other activities that are
associated in the centers are not going to go away. You are going to... continue to do those. So
when I say that the NET operation is three point.
Unidentified Speaker: Eight.
Mr. Stierheim: ... three point eight million, almost four million. If you were to say, well, gee,
we can do away with that, you are not going to save three point eight million.
18 October 1, 1996
1i
Mayor Carollo: Absolutely not.
Mr. Stierheim: It may only be two million or whatever. So, but we will study it. WA: wi: "t
you pros and cons. I think that's something that is meaningful. It has been in operatic •-"w ior
a while. Let's do an evaluation of it and give you both sides of that picture.
Mayor Carollo: We might even have to combine some NETS, have less than 13, if that would
make sense.
Mr. Stierheim: I understand.
Mayor Carollo: But I think this is one that we need to look at it, we need to study it, and then we
need to make decisions, based upon hard facts.
Mr. Stierheim: The next one is a tough one. And somewhere else in here, I talk about the
special... What's the name of the term in the budget'? The special...
Mayor Carollo: Well, you have two that are...
Mr. Stierheim: Page 116.
Mayor Carollo: You have reduced general funds for support for community based orb>. 1zationn.
Mr. Stierheim: Right. It's all the cats and dogs, and some of them very important and...
Mayor Carollo: Yeah, reduce funding in special programs and accounts. I think we have to go
across the board on this. If we start saying that we will reduce it for this one, but not for the
other, that's where we fall into problems. We're either going to have to do it across the board or
not.
Mr. Stierheim: You need uniform... What you really need, Mr. Mayor, are uniformed guidelines
that the Commissioners feel they can live with that are fair. And, you know... much like J.L.
with TDC (Tourist Development Council). You get a report from staff on how many room
nights it's going to be, and so forth and so on. And then the TDC makes a decision whether it'
going to appropriate any money. Or you set up a pot. Right now, you've got at least here +d
there's probably other monies somewhere. Yeah, you've got two million four huncr,-d a__d
ninety-five thousand. Now, some of that was for audits and so forth. But you've got se /era,
activities on page 117 that are... and you also have your organizations. You set up a y,.0
say, from this we're going to allocate... Requests should be received by a certain time, a;--d th,;�F
you go through a process very similar to what the TDC does when it annually appropriates. It's
going to give money to that association. It's going to give the free use for this and so �+rth, but
it's done under guidelines. At any rate, that's more of a long-term process, but it's one that we
can study and, hopefully, present to you.
Commissioner Plummer: Well, there's one other thing that you can take into consideration.
Most of the CBO (Community Based Organization) monies that you're talking about, either for
development or for trade or what, does come from the Federal funds. Now, one of the big
problems, Merrett, and I'm sure somebody has told you this already, has been in the past, is the
amount of the money that is taken out of there by the City to implement programs that normally
had been done by the general fund. OK? And instead of putting the monies into these kind of
accounts, they went into the general fund. And I think that you'll find that there's a great deal of
those monies that were transferred over. And I remember so well the people from Housing
would come in and say, "Well, why are you doing Community Development? All the
19 October 1, 1996
administrative cost is coming out of the CDBG (Community Development Block Grant) 'anL.
And, you know, that's one of the areas that I think that you've got to look at, is the trans - of
those funds out into other areas that always had been in the past... and I got to tell you, that
started with Mel, OK?
Mr. Stierheim: Sure.
Commissioner Plummer: So, I mean, you're going back that far. You're limited, maxed out on
social services at 15 percent. So that's never been any kind of a problem, other than we never
had enough money. Now, then you break it down to the CBOs, and you break it down to
Housing, and you break it down to administrative cost. And I think that maybe one of the areas
you are going to find in there is that those administrative costs, which I've always raised h,:ll
about, is high. And those are transfers of funds over that not necessarily had to be.
Vice Mayor Gort: Mr. Mayor.
Mayor Carollo: Go ahead Mr. Vice Mayor.
Vice Mayor Gort: Mr. Mayor I agree with you, and I think we need to set up standards, criteria
and guidelines, so it goes right across the board, and everybody knows what the rules are, and
that we don't change the rules in the middle of the game.
Mr. Stierheim: We'll...
Vice Mayor Gort: I think that it's very important, whatever recommendation you bring to us,
that you also bring along the standards, criteria and the guidelines that we need to follow, to
make sure that everyone is aware what we are going to be doing.
Mr. Stierheim: We can do that.
Vice Mayor Gort: Thank you, sir.
Mr. Stierheim: All right. This is a management option, really, one that I would N 1 tl.4
Commission to approve. And that is that if, at the end of the day here, if we say, yot kno 1
am trying to think of an example. I don't know if it's emergency medical service, of it'.
parking violations, or it's something... That we charge a department director witl. :he
responsibility... take Solid Waste, overtime. And so that there are cost incentives to th.
department director or the assistant for performance. In other words, if we do this... And I mean
you still got to pick up the garbage, and you got to do the things that are required, but we get on
a more sophisticated basis of evaluating executive performance. And there are goals, and it's
clear, and they are signed off, they are shared with the Commission, and at the end of the year,
there may be a bonus or something involved for meeting that goal, particularly when we are
talking about cost containment. Again, you know, what I'm a little concerned about is some of
these things really take time to get done. So the fact that they're here, you know, whoever sits in
this chair a couple of months from now is going to inherit a few things, but at least it's laying out
areas that I think will improve the administration, the cost effectiveness of the City government.
Clearly, there is another area that you could do the same thing. You've got a seventy-eight
million dollar ($78,000,000) unfunded liability for Workers' Comp. You have an audit study
that shows that you clearly should have a reserve, just like you should have a reserve and
replacement for maintenance for all kinds of things, and you don't have those reserves. I rzt:+
into a case just the other day, Mr. Mayor, where Public Works is charging thirty-eight colla?�
($38) an hour for work done here in the building. Well, I find out that was ten years ago, into a
computer, because there was going to be a reserve fund, so that you could have money to mpair
and maintain facilities in the future. Well, the reserve is long since gone, but the thirty-eight
20 October 1, 1996
dollars ($38) an hour is still being charged, and they are trying to get the computer changed. I
mean...
Mayor Carollo: But what we're actually talking about...
Mr. Stierheim: Every time I turn around, there is another area that really requires containment.
Risk Management is an area that requires, I mean, a whole review. It is out of control. You
have 900 cases a year, Workers' Comp, out of 3.300 employees. I mean, you talk about
serious problem, that's a serious problem. What are we doing in the area of prevention? Wry+t
are we doing in the area of training, safety, fixing the sidewalks, addressing the issues of purrlic
liability, in addition to Workers' Compensation? I am also told, for example, that under c
present procedures, if I'm correct... Somebody, if I'm incorrect, somebody tell me the rigN, w"J.
But I am told that we pay two-thirds of the base pay when a worker is on Workers' imp., srd
in addition, we have a "make whole" provision where we provide the difference C-ccweer_
two-thirds and the normal salary of the employee. Now, what makes this a little complicated is
that there is a tax advantage on the two-thirds.
Commissioner Plummer: That's disability.
Mr. Stierheim: So that at the end of the day, the worker is making more money off duty. Am I
stating it incorrectly? The worker is getting 115 percent of his base pay, or 116 percent off duty
than when he's working. So where is the incentive for the...
Commissioner Plummer: Well, you're not quite correct there.
Mr. Stierheim: OK. If I am wrong, then somebody correct me.
Commissioner Plummer: All right. You have to be... Under the disability, you h ivc.
adjudged by the board to be qualified for two-thirds disability. There is an area then, . ie_,ett
that disability right now, the last number I heard was just in excess of a million .!011ars
($1,000,000) a year. OK? That's what the City was paying out in the two-thirds disability. Thy.
recent court action is what I'm not up to speed on as to whether or not Workmens' Comp. cLbe
used as an offset against the two-thirds or not. But usually, when there is a two-thirds, ii is
absolutely tax free. When I sat on the pension boards, we tried to talk about bringing people
back to have them reevaluated, and, of course, under the new terminology of the Federa;
guidelines, they would love it, to come back, because if they were making three hundred dollars
($300) a month under the old guidelines, they came in here now, they could take and fall down
and they'd take home nine hundred dollars ($900) a month. These are the kind of things that
you're faced with in the total disability picture.
Mr. Stierheim: I'd like Frank to comment on that.
Commissioner Plummer: Chief can tell you more.
Mayor Carollo: Chief, can you shed some light into this?
Chief Frank Rollason (Police Department): Yes. I think we're mixing apples and oranges. One
thing, when we talk about two-thirds, we start thinking about a pension type.
Commissioner Plummer: It is totally separate from Workmens' Comp.
Chief Rollason: Separate deal.
Mayor Carollo: A hundred percent.
21 October 1,1996
.ram
Commissioner Plummer: No, it's not 100 percent, Joe.
Chief Rollason: What the Manager is speaking of is what happens when an employee is injured.
When we talk about Fire, Police, Sanitation, these are people that are picked up from day one at
100 percent of their pay, either through the emolument of their Workers' Compensation benefit,
and then a supplement is given that brings that person up to 100 percent of pay. The Workers'
Compensation portion is not taxable, and therefore, there is a net gain to that particular employee
during that time.
Commissioner Plummer: Yeah, but it's separate from the sixty-six and two-thirds.
Chief Rollason: Well, I think where we're getting the sixty-six and two-thirds is that whcli you
reach a certain period of time, then you drop off on two-thirds of your pay, and at that ; oA'vt wc...
Even then, there are employees that the Workers' Compensation is less than what twc-thirds of
their pay is, and we make up the difference to bring them up to that two-thirds of that pa.y.
Commissioner Plummer: The two-thirds, that's correct.
Chief Rollason: In the case with the general employees, there is a stipulation in there that the
first seven days that they are off will be charged to their own time. So the idea was that there
was an incentive there that these people would come back to work. However, there is another
provision in there that allows the employee to be off. After they are off 21 days, we will go back
and pick them up from day one, and make them whole for that period of time. So therefore,
there is somewhat of an incentive to, when you're 14 days out, 18 days out, to make it to that
21st day, and then we'll go back from day one and pick them up. So those are areas that we
have presented to the Manager that certainly should be looked at and you know...
Commissioner Plummer: Frank what...
Chief Rollason: The other thing that I do want to add when we talk about this area, and it
certainly needs to be addressed, because it does have an impact on us, is that those workers that
sustain catastrophic injuries in the line of duty, I think we should look at separating thosL .:Lom
those that have the typical in -line -of -duty injuries, whether it be sprains, or strains or that type of
thing. But if you have a fire fighter or police officer... Or like we had a Solid Waste worker ju::'
recently that almost lost a leg while picking up the garbage. I think those type of injuries, I
would think that we would look at and say we need to separate those, and those people, we'll
pick up at 100 percent, so they don't have those financial worries that have an impact on them at
the time of a catastrophic injury, too.
Mr. Stierheim: Chief what is the... Am I correct, is it seventeen million ($17,000,000)? What do
we have budgeted?
Chief Rollason: For this year?
Mr. Stierheim: Yeah.
Chief Rollason: Seventeen million ($17,000,00) in... actuarily or what's projected is !'tl
probably spend fourteen, for sure, if I don't have some big item hit me that we haven't )lanr:3
for.
Mr. Stierheim: I don't want anybody to misunderstand. I mean, somebody that's injured,
want to take care of them. They're part of the family. But I think there's just a lot that can
done in the area of safety and prevention. And I also think there's... Correct me if I am wrong.
There's some abuse in the system. This is an expensive item for us.
22 October 1, 1996
o
Chief Rollason: It is an expensive item. Now, all of that is not Workers' Compensation Vde
split it about...
Mr. Stierheim: General Liability.
Chief Rollason: ... half and half with liability and Workers' Compensation.
Mayor Carollo: What percent of our work force is going through Workmens' Comp. every year?
You said about 900 employees.
Chief Rollason: About a third.
Mayor Carollo: I can't imagine of any other major City that has a number that high.
Chief Rollason: We're up there. Generally, when you look at Dade County, it runs about ten, 12
percent. National averages in municipalities was seven to eight percent.
Mayor Carollo: Well, Chief, that right there is telling me that there is a complete lay �A<._
administration and supervision to keep on top of employees to make sure that they are g:)ing to
get back to work when they are supposed to. You know, this, I think, goes to the root the
problem that we have today.
Commissioner Plummer: The State has changed some of the rules.
Chief Rollason: We have instituted light -duty programs to bring people back. Again these, as
? the Manager is speaking, that all of these different programs and ideas require resources to make
them happen, whether it be the safety committee, or the light -duty program, and we have all
across the board taken hits in those areas to reduce people, and the programs suffer. 'That's the
bottom line. There's no free lunch.
Mr. Stierheim: Yeah, I think....
Mayor Carollo: No, there's no free lunch, Chief. But what I'm seeing is that same lack of
supervision that we had at the top. It just went all the way down from the top to the bottorr ;id
this is why we are in the hole that we're in today.
Mr. Stierheim: Thank you, Chief.
Vice Mayor Gort: Mr. Mayor.
Mayor Carollo: Vice Mayor.
Vice Mayor Gort: Merrett.
Mr. Stierheim: Sir.
Vice Mayor Gort: I think with something like this we can show... we'll have an expenditure for
the Safety Committee of two million dollars ($2,000,000). But that two million dollars
($2,000,000) can save "%" amount of money. j
Mr. Stierheim: Oh, for sure.
Vice Mayor Gort: I think those are the things we need to analyze.
23 October 1, 1996
Mr. Stierheim: Yeah, I think the problem is... It runs across the board. I mean, I don't mean to
focus on the abuse in question. But the whole area of safety prevention, training,
administration... I mean, I think Frank does a great job in a very difficult area. But it requires
the support not only of all of the departments, but of labor and it's just a big, tough item. It was
a tough item when I worked here before. I mean, you have attorneys out there that specialize in
this, and they are tough. And you're... you know, our City people... Mr. Attorney, I don't kt:•"
who in your office handles this, but I'm sure that they can give book and verse on this subject
Commissioner Regalado: Mr. Mayor.
Mayor Carollo: Go ahead, Commissioner.
Commissioner Regalado: If I can just take a minute of the Commission and the pubic here.
Going back to something that was mentioned before we dealt with the insurance, it was just ,
touched on, the fact that there was some work done here in City Ball, and because of a computer
program, it was made to appear that we paid, or the City paid, or the residents. We, the
residents, paid more than thirty dollars ($30) an hour. I'd like to address that briefly, because
I've been all my life working on the image, the perception of the public. If we are going to go to
the public of Miami, to the people of Miami to ask for sacrifice, and if we, here, sitting before a
group of persons, but not all the City of Miami, asking ourselves about making cuts and making
our cuts in our offices, then because of a computer program, the perception of the public...
Because this is a City that works within the Sunshine Law, and because everything here is
transparent, or it should be, then the public will see in print, or will hear that this Commission,
this government is making some kind of work that the City is paying thousands and thousands of
dollars, at least in paper, although not in real money. Then we are defeating the purpose of what
we are doing here. So I will ask you, Mr. Manager, to ask the correct department to fix that
situation that we have, because we are dealing here with an image problem, with a percept' f
the people. The people will be willing to sacrifice if they see that, truly, the govert - _.it is
sacrificing. And we do not like to appear before the public of Miami as being heavy sr,,:nders,
happily spending here within our City Hall, So I would ask you that this will be fixed, and that if
anybody from the press, if anybody from the public wants to come and find out what has been
spent either in Cuban coffee or in painting one wall here in City Hall, they would have the right
figures and they would understand that what is being done, it had to be done.
Mr. Stierheim: I've already gotten involved in that. The truth of the matter is, and I don't want
anybody think that that's the actual cost per hour, because the average wage, as I understand it,
of our maintenance people is fifteen dollars ($15) an hour. And that's the average. Is that
correct?
Unidentified Speaker: Correct.
Mr. Stierheim: Yeah. So, I mean, the system has to be corrected, and what it produo::s is
inaccurate.
Mayor Carollo: One question, Merrett, that I have on the system. This is Monopoly mcnc y. It
is not money that the City has spent. Now, I have two questions. One, this was crew: r d about
ten years ago or so, this whole system. As I understand it, as best as I could understanL !i, it was
done so that the Finance Department could have extra monies if they would charge more. Is that
correct?
Mr. Stierheim: It would be a reserve set up for future maintenance of the City. It's just like...
You used to have a reserve when you... when motor pool... When you got a vehicle from the
motor pool, that's the way the system worked.
24 October 1, 1996
�i
e
Mayor Carollo: Yeah.
Mr. Stierheim: They calculated so much a mile, and that's what the departments paid for that
car. But it included a replacement reserve.
Mayor Carollo: Yeah, the actual cost to the department was approximately fifteen dollars ($15),
give or take a couple of dollars each way, with benefits. We were being charged some thirty-
eight plus dollars an hour. Big difference.
Mr. Stierheim: Yes, sir.
Mayor Carollo: It's like 80 percent or more tagged on. My question is, was there evei. ariy r l
money transferred from one account to another? And I think you know where I'm coming frog,
with this.
Mr. Stierheim: Yeah, I think...
Mayor Carollo: And if there was, what happened to that money that was transferred from one
account to the other? Did we spend it in the City? Did it end up somewhere else?
Mr. Stierheim: We're talking about maintenance.
Mayor Carollo: I'm talking about the difference of what was actually spent by the City i
repairing anything here at City Hall or anywhere else and the huge markup that was being place.,
on those bills.
Mr. Stierheim: Yeah, that... Well, Dipak tells me that it was used to balance off th.- .:xcess
money. There is an interfund transfer on those billings, is there not?
Mr. Dipak: Yes.
Mr. Stierheim: From the using department. So there is, for example work done here at this
building, there will be...
Mr. Dipak: There are no reserves.
Mr. Stierheim: I need... There are... I know there are no reserves. I've already said that. But
the question the Mayor is asking is, if the account is charged thirty-eight dollars ($38) an hour,
then what happens. Because there is an interfund transfer. Is there not?
Mr. Wally Lee (Assistant City Manager/Public Works): I'm not sure.
Mayor Carollo: You're not sure, Wally? You're the Director of that department and yo�!'re nut
sure?
Mr. Lee: May I clarify it, Mr. Mayor?
Mayor Carollo: Please do.
Mr. Lee: 'These are the charges that automatically come up in the computer. I assume they
cover the payroll. What happens to the other monies, that's not a function of the department.
Mayor Carollo: Well, if your department is charged... I'll give you an example Wally. There
was one minute job that was done for my office that I was present on that day. It took no more
25 October 1, 1996
1i
than one hour. That was to screw on a couple of plates in an old elevator that's there, to rna.ke
sure that it could not be opened. And then, supposedly, there was a door that was taken ow a
glass door that was just taken off the hinges. To be gracious, let's say that it took an dour.
didn't take an hour, but we are going to be gracious, and give them an hour. We were charged
nine hours to do that. At the same time the total bill came to some three hundred and fifty
dollars ($350). It didn't cost the City that even if, indeed, there was nine hours of work that was
put into that. And there was no nine hours of work that was put into that. Three hundred and
fifty dollars ($350), that's what it appeared that it cost the City to do something that we know,
and we have sufficient witnesses, that we know that it took at most one hour, and actually, it was
less than one hour. Now, you are telling me that you don't know why we're charged more,
where the money is going to, if it's being transferred from one account to another?
Mr. Lee: No. What I said, Mr. Mayor, was the difference in the actual wage rate and th
markup, I do not know what's done with that money. That is determined by, I guess, Budget or '
Finance. These...
Mr. Stierheim: These, well I mean the...
Mayor Carollo: See, but in the meantime, Wally...
Mr. Lee: Yes, sir.
Mayor Carollo: ... there are only two reasons for this policy being established. One, as was
stated now, was to create a fund that was to be used for future years for the maintenance or
Finance Department. There are no funds there. I'd like to know and have actual proof, not just
for Dipak to say, not even in a alike,. if there, throughout the years, were funds that were
transferred, where did those funds go, where were they spent? At the same time, you know well
that that has been used to... when people in the Administration were mad at certain members of
the Commission, and those Commissioners did not fall in line with what certain people of the
Administration wanted, then that was being thrown out to the public to try to embarrass those
members of the Commission, and make it appear that there were huge expenses made in projects
that actually didn't cost a heck of a lot to do.
Mr. Stierheim: Well...
Mayor Carollo: And that's the point that I'm getting to.
Mr. Stierheim: OK. I... Mayor, I understand fully what you're concerned about. I don i :,`.:ink
the system is working. I assure you that we will review it and correct it. I think it invoi::,s
computer correction, and I'll give you a report on exactly how it has worked in the past.
Mayor Carollo: Well, I would go further than that, Mr. Manager. I want to do comparisons, and
if, indeed, it would be cheaper for us to go to the private sector every time that we need to have
maintenance done, I want to do the same thing for Public Works. What is cheaper? Because
what I am seeing is that every time that we're doing something in this City it is costing us much
more than if we would have the public (sic) sector do it. This is a prime example.
Mr. Stierheim: I understand.
Mayor Carollo: So we need to have comparisons, because if we are having individuals in our
payroll, if we are having managers in our payroll... And I don't care who they were cousins tc.
before in the previous Administration. If they are not functioning, let's get rid of them and h� ink►,
the private sector in to do that job.
26
Mr. Stierheim: All right, sir.
Mayor Carollo: We're at...
Mr. Stierheim: The feasibility of restructuring City debt. I don't know whether that... but I will,
in addition to our own staff,be utilizing some expertise from both the private and the public
sector, pro bono to evaluate some of these questions, and, you know, I'll report to you further on
that. But I've reached out to the corporate and public sectors to ask for additional support, and
the result has been heart-warming. i think there's a genuine concern, and this is an area where I
will ask for some expertise. I see Mr. Montalbano was here, and he just left. He's one of the
people that I am talking to, he used to be the Finance Director for the County. He's done some
work for the City, but he's still one of the brightest minds we have in this entire area. There are
others. So we will look at that. Increase Marina. Here's a hot one. I can remember that I
handled this when we had a fee increase for Dinner Key. That's one that Mel Rees; let me
handle, J.L.
Commissioner Plummer: Yeah.
Mr. Stierheim: It was a lot of fun.
Commissioner Plummer: Let me make a point here, and maybe if I'm wrong, I stand corrected.
But, you know, this used to be an annual screaming match called "public hearing."
Mr. Stierheim: Right.
Commissioner Plummer: We met with these people and, in fact, came to a realization of cost.
They, themselves, agreed to an annual increase. I think I'm correct on that. And that fee
increase kept it from coming back here every year, after year, after year for these heated so
called "public hearings." Now, I don't know if that's the case today, but that's what we
originally built into it. And I think that if that is working and they are competitive in the same
area as the private that is providing the same kind of service, that's one thing. But if it's
working, I don't think we need to fix it.
Mr. Stierheim: All right.
Commissioner Plummer: And I talked to Bill yesterday about garbage fees. You I,un )w
whatever you establish... And I'm not trying to set the fee or not set the fee, and as the Mayor
said, hopefully, we don't have to. But it's... realistically, we're going to. That what we do and
what we set, Mr. Mayor, is an annual CPI, or whatever formula you want to devise of all
increase, because we know, Merrett, and I'm sure Bill has probably brought to your attention,
that the tonnage of what is being paid to Dade County today to get rid of that is going up every
year, OK? So I would hope that any of these fees would have an automatic escalator, a formula,
whatever you feel is best, so that we don't have to address these issues year after year after year.
And I think the marinas, as I recall, was the classic example. It worked. The people were happy,
the City was happy and the revenue was coming in.
Mr. Stierheim: That's a very good suggestion, Commissioner. We'll research that and... but I
agree on you on the escalation provisions.
Mayor Carollo: One more that I'd bring up on the increased marina fees and liveaboards and eL
cetera. Christina, can you come up here for a minute please? Christina Abrams. Do we c:_arge
any fees for the people that have their boats out in the anchorage?
Ms. Christina Abrams (Director, Public Facilities): No.
27 October 1, 1996
A
W
Mayor Carollo: Why?
Ms. Abrams: Because it hasn't been done so in the past. About four months ago, wr wrote . t
ordinance for establishing an anchorage in the Dinner Key area. That ordinance has bc;,
presented to the Waterfront Board. They asked me to give them 30 more days to review it.
Once they review it, our intention was to bring it to the City Commission. An anchorage has
existed there for over 30 years.
Mayor Carollo: And we have been losing hundreds of thousands of dollars there for over 30
years, every year. I would like to have that ordinance before us as quickly as possible. If you
could speak to the chairman of that board, so they can deal with it before the 30 days that they've
asked.
Ms. Abrams: It's on the agenda for the next meeting, which is the second Tuesday in October.
Mayor Carollo: All right. You have hundreds of boats out there.
Ms. Abrams: Two hundred... 198.
Mayor Carollo: Yeah. And some come and go. Those people out there are constantly using our
facilities, or coming here using the bathrooms that the City has and other facilities. They need to
pay, also. All we need is to put someone out there. In fact, if we have to use the Marine Patrol,
the Police department for that, I tell you, that will be a great use for it, because it is going to
bring in all kinds of revenue for the City. So we need to immediately jump on that, because we
are losing tens of thousands of dollars there.
Ms. Abrams: Plus we spend about thirty thousand a year, twenty thousand a year removing
derelict vessels.
Mayor Carollo: Madam, I think the figure is much higher than that. But if you could have the
Waterfront Board, once they hear it, if you could immediately bring it back to us at the very next
meeting after they take action.
Ms. Abrams: Yes, sir.
Mayor Carollo: Thank you.
Commissioner Regalado: Mr. Mayor.
Mayor Carollo: Yes, Commissioner.
Commissioner Regalado: On the issue of other public facility fees increases, I was wondering if
we can, before addressing that issue, review the current waiver of fees that we have in many,
many public facilities of. the City of Miami. I know about several ones, and some people may
say, "Well this is for the children." But we have a lot of people, and organizations, and just
people making a lot of money off the citizens of Miami, and using park employees, and using
City of Miami employees to fix what they break. And so could you address that, specifically?
Mr. Stierheim: We concur, Commissioner, and it's a little bit ahead of us. But if you see under
Administrative Actions for Commission concurrence, there is language that I think addresses...
is on point with your suggestion. So we're in full agreement, and that will be an item that we
will pursue.
28 October 1, 1996
v
Commissioner Regalado: Thank you.
' Mr. Stierheim: Thank you, sir.
j Mayor Carollo: Thank you, Christina.
Mr. Stierheim: Evaluate EMS (Emergency Medical Services) fee levels. I mean this would he a
study in collection. There are a lot of those fees that are out there that are not being Collected.
And I am not suggesting that, you know, that we can collect them all. Obviously, indigents aiid
others, that's a very difficult thing.
Commissioner Plummer: Well, you got to change policy there. All right? I was the one that
brought that to the table... Chief, what, five years ago, four years ago?
Chief Carlos Gimenez (Fire Department): Yeah, around five years ago.
Commissioner Plummer: When I found out that Miami Beach was collecting a real bucket full
of money, because insurance companies were willing to pay, Medicare was willing to pay. But
the Commission established a policy at that time that we would go after full force with a
collection agency for non -City residents. That in reference to City residents, we would send
them a bill, and if it wasn't paid, we didn't pursue with a collection agency. So that is a matter
of policy, and that policy, you would have to change, if, in fact, that were to be the case.
Mayor Carollo: That will have to change.
Chief Gimenez: Yes, sir. If you decide as a... If the board decides that they want to �z, , -�,_er
City residents, also, for nonpayment, then we will do a hard collection on City residents. '"I
give you some data here. We collect now at about a 40 percent rate. Ninety-six percent of :.at
four percent either comes from Medicare, Medicaid or private insurance. And we get four
percent cash payment. So that tells me that the people that don't have some kind of funding
source for that aren't in Medicare, or don't have private insurance are not actually paying. We
are looking at maybe instead of making it cash, maybr. having Mastercard, Visa available for
them to pay that payment through the collection agency. We're also renegotiating with our
collection companies to reduce the rate from seven percent to maybe four and a half percent.
And we're also looking at the feasibility of increasing the rate, itself. Although Medicare and
Medicaid have a set rate for reimbursement, we are doing a study to find out what the private
insurance company will actually pay, and they might pay higher bills. That's 38 percent of it,
the stuff that we're collecting. If we increase that, then we'll increase our revenues. And we'll
get back with a report to you.
Commissioner Plummer: Put on the record now how much that's actually raising.
Chief Gimenez: Excuse me?
Commissioner Plummer: How much is the charges for EMS services actually raising for the,
City coffers?
Chief Gimenez: Our last fiscal year was three point five million.
Commissioner Plummer: We never collected before.
Mr. Stierheim: Understood. Thank you, Chief.
Commissioner Plummer: And boy, there was a lot of screaming and hollering when I brought
that to the table. And the one policy they did establish, which is up for consideration, is that you
29 October 1, 1996
1i
don't go pursuing City residents. And so we said, OK. But that's three and a half million
without pursuing City residents.
Mr. Stierheim: Thank you, Commissioner and Chief. The next one, reform Code Enfo,ceme
process.
Commissioner Plummer: Oh, boy. Here's my favorite.
Mr. Stierheim: And it's to hearing examiners. This could be a hot one, also. As I understand it,
you do have a Hearing Board. I think someone called me who is the Chairman or something,
and I haven't been able to get back, and I want to. I want to evaluate this. I mean how are we
doing on that hearing process? I think at some point, it comes to you, doesn't it Mr. Attorney?
And, you know, we need to evaluate. Are we... I mean, if we go out and do code enforcement
and forth and so on, are we letting people off the hook too early down the line, or should they be
paying the violation? And I'm offered due process. And if there are those cases where
circumstances, litigating or otherwise, might warrant a waiver, that's fine.
Commissioner Plummer: Well, here again, we changed that policy last year completely. You
know, we kept hearing around here that we had a hundred million dollars ($100,000,O00) in
fines.
Mr. Stierheim: I've heard it, too.
Commissioner Plummer: OK? And I said, well, collect half of it and we'll be happy. A i.�� ..
did, and I don't remember the exact numbers last year, there was the latitude of the -ity
Attorney to mitigate fines down to .15 percent.
Mr. A. Quinn Jones, III (City Attorney): It was up to 15 percent.
Commissioner Plummer: Fifteen percent. What we did last year was we changed this. We said
the first month, if you pay, 15 percent; the second month, 25; the next month, 35. And I think at
the fourth month, at the 45 percent level, foreclosure action was automatically started. And I
think that they're getting a lot more compliance now when people realize that on the fourth
month, the City is starting an action to foreclose. I know the City Attorney had opposition at that
time, and probably still does today, but I still believe that we could go out to the private sector
attorneys to pursue these matters on a contingency fee to collect some of this so-called hundred
million dollar fees, fines that are out there. The City Attorney's office is busy, and these ale
matters that if they didn't... If the private sector attorney didn't collect anything, he didn't ge:
anything. But if he did collect, he could get a percentage, and we get the major part of the
percentage. I still think that it's worth exploring and pursuing. I know the City Attorney before
had a disagreement with that, but I think it's a matter that we can look at now, because times are
different.
Mr. Quinn: Let me just tell you where we are on that and where the difficulty comes in.
Because before you can do the foreclosure or whatever... We've initiated just this year alone,
something in the neighborhood of forty -fifty. The difficulty comes in... is that you've got to do a
title search, which we didn't have the capability to do, but we have it now. We have it on line.
We worked out an agreement with a title company where we can get it in a matter of minutes.
But in terms of the Code Enforcement fees, this year up to now, we've collected roughly about
three hundred sixty thousand dollars ($360,000) which was something that hadn't been. And I
informed you a year ago, that was one of the reasons why I wanted to get someone on board so
we would spend full time just doing nothing but that and collections.
Commissioner Plummer: The problem is as I recall...
30
October 1, 1996
1i
r
Mr. Quinn: Yes.
r�
Commissioner Plummer: ... Code enforcement costs the City a million dollars ($1.,000,000; "Id
we collected three hundred and sixty thousand ($360,000). Merrett, one of the other probler
that you'll find in that particular area is some of these fees are so ludicrous that the fec is wort...
about five.... or is four times the amount of the value of the house.
Mr. Stierhei.m: I understand that.
Commissioner Plummer: OIL? And these are some of the areas when they talk about one
hundred million dollars ($100,000,000) in fees or fines that a house...
Mayor Carollo: I was talking to the Manager about that last night.
Commissioner Plummer: Yeah. That you've got a fifty thousand dollar ($50,000) value on a
house or property and it's a two hundred thousand dollar ($200,000) fine. It doesn't make any
sense. Yet, they walk around telling everybody we got a hundred million dollars ($100,000,000)
in fines.
Mayor Carollo: Well, I agree with that. But out of the approximately little over a hundred
million dollars ($100,000,000) is outstanding there, we must have at least five million
($5,000,000) that we can collect on that.
Commissioner Plummer: Oh, I don't think there's any question.
Mayor Carollo: Five percent. And we need to instruct the Manager to come back with a solid
recommendation for us to approve to let loose someone to collect that for us.
Commissioner Plummer: Joe, let me tell you something. Not only is it a revenue source, but it
also cleans up your City. That is one of the main sources.
Mayor Carollo: How true.
Commissioner Plummer: One of the things, Merrett, I would like to recommend to you, and it
can work hand in hand with this in conjunction, four... Three, four years ago, we established
through the Fire Department, teams of firemen who went out block by block, house by house,
and did inspections. Now, there was a fee, as I recalled, involved in that. But let me tell you
something. People became very, very much involved, that if they were going to go there and
they were going to do an inspection that they were in compliance of the Code. It was interesting,.
Mayor Carollo: At the same time, I think that before we would institute any such action, we
should give people an amnesty period to...
Commissioner Plummer: Pay up.
Mayor Carollo: ... come in, declare what they have paid for, the different fees that they would
have to pay, and then we'll let loose and hit them hard for those that haven't.
Commissioner Regalado: Mr. Mayor, if I may. Last Friday, I visited about four cafeterias in the
northwest area. And we noticed... and this was an operation done by the NET. And we noticed
that of all those four cafeterias, all of them had their license expired since 1992. One, the most
up to date one that we got was 1994. They didn't have licenses on the jukebox, nor to sell
cigarettes from the City of Miami. And that's besides the different violations that they incurred.
So I think that we need to do something in that area, in terms of licenses.
31 October 1, 1996
Mayor Carollo: Well, Commissioner the certificate of use is an occupational license that
businesses out there do not have from the City. We probably will have easily, at least three
million dollars ($3,000,000) a year that we can collect, and that's every year. You know that
might be a conservative estimate. So that's an area that we immediately need to jump in.
Mr. Stierheim: Thank you. We'll get on it.
Commissioner Regalado: Well, on Code Enforcement Board, Mr. Mayor, there was !-,: )me
figures mentioned, and I don't know if you want to listen about some details about whet she
Code Enforcement Board collects. Chuck McEwen is one of the members, and he was in the
public, and I don't know if you want to hear that later on a different occasion.
Mayor Carollo: Well, I think we need to hear that later. Once we're done, if there is a:iy
members of the Commission that would like to bring anyone to testify, I'll open it up to that.
Likewise, for the union presidents to make any statements or ask any questions. But at this point
in time I would just like to proceed with what we have now. What will be the will of the
Commission? Do you want to work right through or do you want to break, come back?
Commissioner Regalado: I would rather work right through, if we can.
Mayor Carollo: OK. Commissioner.
Commissioner Dunn: I'll go with the consensus. We'll work right through.
Mayor Carollo: Yeah.
Vice Mayor Gort: It doesn't make a difference.
Commissioner Plummer: I'll go either way.
Mayor Carollo: OK.
Commissioner Plummer: I don't have a car so, I can stay here or not stay here.
Mayor Carollo: Let's work right through.
Vice Mayor Gort: Mr. Mayor.
Mayor Carollo: Go ahead Vice Mayor.
Vice Mayor Gort: On this amnesty...
Commissioner Plummer: I've got to get a cup of coffee.
Vice Mayor Gort: ... about a year and a half ago, I think the staff had some kind of a pl, n,
because the amount we had out there was ridiculous. I think the staff has been workillo. )n .iie
amnesty planning and I think that's something that should be coming up now.
Mayor Carollo: Very good. Mr. Manager.
Mr. Stierheim: All right. The next one is really a big one but it's covering several areas. This is
the alarm fees. I know that we do have a lot of false alarms and so forth. Towing, certificates of
use, certificate of use renewal, and the occupational license fee, which you've just touched on. I
don't know - Chief, there's a couple of departments involved in this - Whether or not you have
any comments. You know the one I'm on?
Chief Donald Warshaw (Police Department): Right. Mr. Mayor, as it relates to alarms, we bring
in about four hundred thousand dollars ($400,000) in revenue from alarm fees. The big problem
for us with alarms is last year, we responded to over 35,000 calls for alarms of which 97 point
some odd percent were false alarms. One of the things we've looked at working with tht
legislature is to try to impact on legislation which would put a bigger burden on the alar!^
companies, because we have to send two officers every time we go to the scene of an alarm evil.
And it's a big drain on manpower. As far as it being a revenue producer, we have a small ala::;,
unit. That's something that we've discussed previously of turning over to the Fina,i-_e
Department. Basically, our role in it is to do nothing more than collect alarm fees, permit tees
where people come to the Police Department and pay their fees.
Mayor Carollo: The four hundred thousand ($400,000) in revenue that you're collecting, Chief,
comes from the false alarms or on the fees?
Chief Warshaw: That comes from fees. That monies go into the general fund.
Mayor Carollo: And that's actual monies that have been collected?
Chief Warshaw: Yes, sir.
Mayor Carollo: OK. Thank you. One other area that we were discussing last night with the Fire
Chief is the possibility of establishing a fire inspection fee also, when the Fire department needs
to go out and inspect. Chief, would you like expand on that a little more?
Chief Carlos Gimenez: Yes, sir. It's a fee that is entirely collected by Metro -Dade Fire. And
we are not collecting a fire inspection fee. We are basically the only entity that actually gnu s and
tries to hit every occupancy at least once a year. And the Fire Department is... once you have
your CU, the Fire Department is the only entity that goes back to do an annual inspection. And
we don't collect an annual inspection fire fee. And we can generate...
Mayor Carollo: Yeah, we need for you to look to see what will be a reasonable fee for the
different types of businesses out there that we could charge. And if you could give us some
estimates of the additional revenue that it could bring to the City of Miami.
Chief Gimenez: Our initial estimate is at least one point five million.
Mayor Carollo: One point five million.
Chief Gimenez: Yes, sir.
Commissioner Plummer: Yeah, but what's the cost?
Chief Gimenez: The cost?
Commissioner Plummer: Are you talking about revenue over expense?
Chief Gimenez: Yes, sir.
Commissioner Plummer: Because if you're talking about the same permit that I pay out in the
County, it's fifty bucks.
33 October 1, 1996
ri
Chief Gimenez: Yes, sir.
Commissioner Plummer: And you're talking about a man to go out, do the inspection.
Chief Gimenez: We're doing that right now, sir.
Commissioner Plummer: But I'm saying is for a million five over expense?
Chief Gimenez: Yes, sir. We'll give you back some numbers.
Commissioner Plummer: OK.
Chief Gimenez: That's our estimate right now.
Mayor Carollo: Like the Chief says, we're doing that right now. We are not charging for it.
Mayor Carollo: Joe, that's not my point. My point is, that I find it difficult to understand at a
fifty dollar ($50) fee that, knowing the way the City operates and the manpower involved, is the
cost factor. I don't think it raises a million and a half dollars. Now, hey, I could be wrong, but
I'm just questioning it.
Mr. Stierheim: You don't think it's high enough?
Commissioner Plummer: Huh?
Mr. Stierheim: You don't think it's high enough?
Commissioner Plummer: No, I don't think they make that much money off a fifty dollar ($50)
fee.
Mayor Carollo: Then we need for the Chief to put that down in black and white so that we can
really see if those are realistic numbers. I think if you study it, I tend to agree with what he's
giving because we are doing that already, and we're paying for it already.
Commissioner Plummer: I'm not... Joe, I not disputing that at all. What I'm saying is when you
take a City fireman, you take a car, you take all the reports, you take all the cost factors involved
on a fifty dollar ($50) fee, if you make ten percent, it's going to be high. And how many of
those have you got to do in the City of Miami to raise a million and a half dollars?
Mr. Stierheim: Yeah, you... The point is... I think I understand here.
Mayor Carollo: Yeah, I understand that, also.
Mr. Stierheim: We are doing the service.
Chief Gimenez: We are already doing the service.
Mr. Stierheim: But there is no fee.
Commissioner Plummer: I'm not disputing that.
Mayor Carollo: Yeah, exactly, that's the point.
34 October 1, 1996
1i
Chief Gimenez: There is no additional... There might be some additional cost for maybe setting
up a computer program, and billing et cetera. But as far as the actual time of the employe
concerned, they are already going out to those businesses et cetera, right now.
Commissioner Plummer: Chief, let me tell you something. In the County, I pay a CU a:i,. . +1
inspection for the Fire Department. I pay... a thing that I never understood yet. The firema_i
came in and he said, "I want to see your assembly permit." And I said, "What is the asst,Aibly
permit". He said "fifty dollars" ($50). OK?
Chief Gimenez: That's a good idea. Maybe I'll look into that.
Commissioner Plummer: I'm already paying it. OK? You know, they hit you now for, you
name it. I'm telling you that there are fees galore. I have... because they made me have a ,
standpipe in my funeral home, I have to pay six dollars ($6) a month to have the water available
in case I use the standpipe. I mean, these are, the things that are just incredible that.
Mayor Carollo: By the way, all this came after Merrett left. It wasn't before. -
Commissioner Plummer: Well, you know, all I can say to you is it's just fees, fees, fees, fees.
Mr. Stierheim: Maybe they'll come back while I'm here though.
Chief Gimenez: We'll come back to you with an estimate on that.
Mayor Carollo: Thank you. The Chief also brought out a couple of other ideas that... One
could bring the City of Miami about a half a million every year. The other is about a hundred
thousand dollars ($100,000) every year, that are pretty solid, if we are able to implement them.
But we still need to get into that now.
Mr. Stierheim: The other, of course, I think we've discussed a little bit was the CU...
Mayor Carollo: Right.
Mr. Stierheim: ...and the occupational license fee revenues.
Commissioner Plummer: Yeah.
Mayor Carollo: Yeah. Well these are two big ones.
Mr. Stierheim: And, whether or not people, in fact, are getting those licenses.
Commissioner Plummer: Well hold on, hold on. Let's don't kid each other. If I'm not
mistaken, occupational licenses are set by the State of Florida. Am I not correct in that, Ron?
They set the max that you can charge for an occupational license, because I remember that
brought in an additional, almost million dollars ($1,000,000) about two years ago, because it had
been frozen at a level, and the State said, "OK, we'll let you go up in the fee." So, you know,
don't say here that we are going to redo the occupational license fee, because we don't control it.
Mr. Stierheim: Well, but the question, I think, more appropriately should have been collection.
Commissioner Plummer: Oh, OK.
Mr. Stierheim: Enforcement and collections, like the Commissioner said.
35
October 1, 1996
Commissioner Plummer: Yeah, all right that. But you can't... The State regulates tf-
occupation fee.
Mr. Stierheim: OK.
Vice Mayor Gort: Yes, because we had an increase on local rates. I think it was -Z.)oui
months ago we increased all those fees, if you recall.
Mayor Carollo: Well, there are other fees that we could look at in the City that needs t_
looked at.
Mr. Stierheim: Any that any Commissioner has in mind, we'd like to know or any of the staff.
Commissioner Plummer: Let me go, if I may. I know you've talked about the union contracts.
The one thing I've not heard anything about is the possibility of reopening franchise contracts.
Now, you know, it's nice to think that we can turn around and say to the unions and say to the
taxpayers. "Hey, we're hurting and we need your help." But I think we've got corporate citizens
in this community, and I'll... You know, just let me use one, and they are a very good corporate
citizen called Florida Power and Light, all right? We have a franchise fee with those people, anu
I don't know why we couldn't say to them, "We need your help." Either in the form o'
additional franchise fee, upping it, or the possibility of making loans available that you sc_eiy
need.
Commissioner Plummer: We have a franchise fee with the phone company. W, a
franchise fee with the cable company. We have franchise fees with all of these people ue
doing business in this community. And I haven't heard or seen one area where the p,- It who
are franchise holders in this community, City... the gas company, they pay a fee. I think tha
ought to invite them to come in and say, "Hey, how are you going to help your community?" and
talk about let's do something where we need help. And I think that, that's something, Merrett,
that you should explore.
Mr. Stierheim: I've obviously... normally, those are 20, 30-year franchises. I am not saying you
can't... Don't misunderstand me. We certainly could sit down and talk with representatives.
One of the options is to get an advance payment on those fees, you know, that could help us
during a... Doesn't help us with the revenue, but it helps us with the cash flow problem. I think
that's been done in the past. We'll look at it.
Commissioner Plummer: I think you should.
Mr. Stierheim: I think it's open.
Mayor Carollo: Unfortunately, some of the rates that we charge are set by the State, of ,% t V.
could charge for some of those fees. But if we can raise any of them beyond what we't,_ cY__rgi► ;;
now, which I doubt, but if we could, then we should look at that. But this certainly is a v-._;
legitimate area that we need to also look at.
Commissioner Plummer: Well, Joe, that's one of the things, as you know, that last year that I
spent a great deal of time, and Ana Proenza, with myself in Tallahassee. And Merrett, I'm sure
you're very much aware about the idea of the so-called "tax exempt properties," which is about a
third of our assessible tax base.
Mr. Stierheim: Correct.
36 October 1, 1596
Commissioner Plummer: Now, I know that there's another fellow... community at -.)I nd ht.e
who are going back to these people and they are saying to these people... that a tax exec., Pt to,
you know, you're getting municipal type services. You need to make a contribution. : s , it
not ad valorem taxation. But you are a business in this community. And of course, what we'rt
trying to do, and through Ron's help and others - Ron worked with me very well - at least this
year, because we came in at the last minute, the legislature agreed to fund the cost study of the
program, which, hopefully will be addressed this year. The problem that you're looking at is, if
it is under a pretense called "public purpose," it's tax exempt. And I'tn talking about companies
that are profit -making companies that are tax exempt, because they so- call "serve a purpose."
You have private schools in this City right now, that are chargin twenty thousand dollars
($20,000) to send your kid to school, sitting on ten million dollars (U,000,000) worth of real
estate as a private, profit -making, and they are tax exempt.
Mr. Stierheim: I understand.
Commissioner Plummer: OK? So I think that you can think about, and you can ccns_der
coming up with a... And I'll give you the others so I don't embarrass anybody, that's a..-.:;jdy
instigating. Sir, you're receiving municipal type services. This is not an ad valorem taxation, at ,
we're looking to you for a contribution to the general fund of the City that's providir_; y ou with
those services. And there are many ways that you can do it under this pilot progran:.'ra+
were working on, which we cannot do without a change in the State law. Other cities, N_,V
York... New York is collecting one hundred and thirty-one million dollars ($131,000,000) a
year, Dipak? One hundred and thirty-one million ($131,000,000) of annual corporative
contributions not related to ad valorem taxation. Cleveland was about sixty-two million dollars
($62,000,000). But as long as you have in that thing there that sets "public purpose," you can't
move. You can't move.
Mayor Carollo: And that was the same wording used for the discretionary fund, as long as it was
for "public purpose."
Mr. Stierheim: I think Commissioner Plummer has touched on an area that is certainly open to
review. I will, of course, defer to the Attorney on researching the law on the City's ability to
impose a... either a tax... I think it's far more legally correct to impose a fee for services such as
fire and police. I mean, we have a... And Commissioner, you and I talked about that, whether
it's 34 percent. I've also heard 40 percent of the City's tax base is exempt.
Commissioner Plummer: Correct.
Mr. Stierheim: And that would include Federal, State, County, including Jackson Memorial,
educational. All kinds of institutions that our two departments provide 100 percent of the service
for, and they do not make a contribution. So that, in effect, the residents of the City of Miami,
through their taxes and fees, are subsidizing that service to those tax exempt agencies and
bearing a burden that is really a countywide burden, OK? So I think these are very legitimate
questions on whether or not... and I hope, Mr. Attorney, you're making some notes, because I
need some legal guidance. If, in fact, this Commission were to adopt a system of fees for fire
service, the question is, could those fees, as opposed to adv alorem taxes, be levied on public
institutions - quasi -public, as you described, Commissioner? And that could really generate
some money, and it would also move Fire and/or Police or combinations of their budgets out of
the ad valorem area into a fee system. That's under study. That is one of the alternatives. But
any... I will tell you that going back in time when I wore a different hat, public housing, for
example, had what was called the payment in lieu of taxes. Now it was not something
equivalent to what the ad valorem would be on the value of the structure. But be that as it may,
they did make an annual payment to the government, and they called it a payment 'n LA__ of
taxes.
37 October 1, 1996
r
Commissioner Plummer: Oh, excuse me. We had a committee in the City, which I wa: f'ie
Chairman, that it became so stalemated simply because this "public purpose" classification Lt.. e
them the exemption. And without... you know, there were all kinds of things. And I'll go into it
later, because I don't want to drag this out. But, you know, you had to hold them up at a zoning
hearing. And if they didn't contribute voluntarily, you didn't give them their zoning, or things
like that. The committee decided not to pursue; to try its efforts to go on better classification of
what was a "public purpose." And I think that's really the case where, you know, especially -
especially - for profit -making corporations.
Mayor Carollo: Well, the bottom line is, we need to get legal expertise on this. If our City
Attorney's Office can provide it, so be it. If not, let's go outside and get someone that can give
us the expertise on this, where if we can place fees upon these institutions, let's go ahead and do
it right away.
Commissioner Plummer: Well, Joe you can...
Mayor Carollo: If it takes, State action, then let's move quickly.
Commissioner Plummer: You can get the attorneys if you want. But let me tell you somttIntig.
People like Ron Silver, who has worked with us last year, continues to work with us and
hopefully, we will be able to do something in the upcoming session.
Mayor Carollo: Well, let's try to do it that way then. But we need to try to move as quickly as
we can on this, because this could bring the solution, that we need to us.
Commissioner Plummer: Almost it would... You could look at, because... Just so nobody
misunderstands us and goes out on television, we're not in any way talking about religious
institutions. OK? We're not talking about the twenty-five thousand dollar ($25,000) homestead.
Those are the things that are locked in. We're not addressing that at all. Ana, what else? Was
that about it? Oh, we're not after Mercy Hospital, which I was accused of. But those of... the
other things that are profit -making...
Mayor Carollo: How about the office building next to it.
Mr. Stierheim: Well, wait a minute, now. I mean if you're providing fire and police...
Mayor Carollo: Yeah.
Mr. Stierheim: ... some form of a fee for that service, is not inappropriate for a medical
institution.
Mayor Carollo: That's correct.
Commissioner Plummer: OK.
Mr. Stierheim: In my judgment.
Commissioner Plummer: OK, what we were saying is... and Merrett so that we thought we
could do what we could do, we were first going to address the profit -making corporations.
Mr. Stierheim: I would agree.
Commissioner Plummer: OK? I mean, there's nobody can argue with that. And you know, w
weren't going to talk about in any way shape or form, addressing the twenty-five homestead, or,
38 October 1, 1996
2
you know, religious institutions. Those were sacred cows, and they would not b:,• tour. ,
without question. So I'm saying to you is, is that we're looking, hopefully, this year... We v-
not seen the conclusion of the study that was paid for by the legislature, but we are vet., tety
hopeful. Mario has been very helpful with this, Mario Diaz-Balart, and others that 15t,,.,:ld
mention that I can't remember. But anyhow, it is underway.
Mayor Carollo: Jack.
Mr. Jack Luft (Director, CPR Dept.): Just so you know, the last... just recently now, our
department has instituted a policy of requesting from private schools that come in under special
exception zoning to request that they agree to a pilot payment, a payment in lieu of taxes as a
condition of the special exception. And the last several that have come through have agreed to
that. In addition, I've been approached by churches who are now looking at what can be
profitable for those churches, which is elderly housing. And they have said to me that by
converting portions of their campus to elderly housing to support their congregation, that is a
revenue producer for them, and something that they would be agreeable to pay taxes or payments
in lieu of taxes on. Much as Merrett has said for public housing, we can achieve that. Sc there
are ways of converting benefits to both the institution and to the City, these types of P -)peril,-
into things that can take nontaxable properties off the roll and start giving us revenues.
Mr. Stierheim: Thank you, Jack.
Mayor Carollo: Thank you, Jack. Last but not least.
Mr. Stierheim: The last item, Mr. Mayor, I think you and other members of the Commission
have raised a question on this one, and we can discuss it, or we can move on.
Commissioner Dunn: Mr. Manager, Mr. Mayor.
Mayor Carollo: Go ahead.
Commissioner Dunn: Could we expand that in terms of pursuing legal action, also, against all
others who might be liable such as the external auditors or whoever else may need to be included
in that?
Mayor Carollo: We certainly must include everyone that had any direct liability in this.
A Quinn Jones, III, Esq. (City Attorney): Well, certainly, it's up to you. You just need to g;vy:
me a directive whenever you have your next meeting to take whatever action you want to take,
and then we'll proceed.
Mayor Carollo: What I think we need to do is, at the same time that we hold our meeting, either
Friday or Monday, to declare a fiscal emergency, I think we need to invite Deloitte and Touche
to come after we do that, so that we could ask all the questions that all of us have of them and
see what they have to say.
Mr. Stierheim: I'll do that, sir.
Commissioner Regalado: Mr. Manager... Mr. Mayor, if I may.
Mayor Carollo: Yes.
Commissioner Regalado: In regards to the internal audit capabilities of the City, I as
wondering if we can assess our Office of Internal Audits, since it's been also a port of the
problem?
39 October 1, 1996
1-i
10
Mr. Stierheim: Well, I'm a little bit handicapped, in that my intention Friday and yest rdaJ .gas
to visit that office and examine the audits that have been conducted. I asked my secretar t-) gi e
me the audits that were in the Manager's office for the last year, two years, three years. 1 wanted
to analyze, you know, just exactly what the auditor had audited. Did he audit the Fi,_.:�_ce
Department? Did he audit all of the areas for example, that I touched on, the 18 points, I Phis;:.
that I spelled in my memorandum on Thursday which were criticisms of the financial systoin?
The collapse, if you will, of the financial system. I would say to you that the external auditor is
your safeguard, is your expert in finance accountability, checks and balances and so forth, and
reports to the Commission. And it reports to the Commission on the activities of the Manager
and all of the departments, and the fiscal affairs. Do they meet nationally accepted governmental
accounting standards? Are they consistent with the State laws and codes? Are the actions of
your Administration consistent with the Charter of the City of Miami and with the Code and
your rules and regulations? That's your safeguard. The Manager's safeguard is internal
auditing. Now, the Manager, obviously will benefit by the external auditor's recommendations,
particularly the management exceptions, which will indicate where there are weaknesses within
the internal financial controls of the City. But the internal auditor is the administrations, because
the Manager delegates to each of the departments, to the Finance Department and so forth,
certain authority, and depends on them to carry out their responsibility. So one of the sysierns of
feedback, professionally, is through the internal auditing department. I have some very :serious
questions about the operation of that department, but I am not at Iiberty to discuss those ,i t.iis
time.
Commissioner Regalado: But the reason I said that, is because if the audit will come from
outside, an outside source, these parties will be liable. And what's happening now is that we can
only blame ourselves here, in the City of Miami. But if we bring people, if we have people from
the outside to audit our City and our books, then these people will have to respond. They will be
accountable in some way, legally. And I'm sure, Mr. Manager, that you know, because you've
worked in the past with the community, that there are a lot of organizations, be it the Dade
County Chapter of Florida Institute of CPAs or the Cuban -American CPAs, or the Afro-
American CPAs, that would be more than willing to even work pro bono in a committee that you
will set up or this Commission will set up to audit our City. And I'm sure that the public will
also be confident of the results.
Mr. Stierheim: That process is underway, and I will report to you, and there may just... You've
mentioned a couple of organizations that I've not reached out to, but those companies and public
sector organizations that I have reached out to, no one has said no; that they will, pro bono,
supply us with some very talented people. And my intention is to form task forces of those
people to work with our City department directors and key staff, and to review a lot of the pointu
that have been covered in my memos to you, some of the questions we have here on potential
revenue sources, and certainly in the case of the Finance Department, the organization of the
Finance Department, adequate checks and balances, all of the things that I've laid before you as
my concerns. As to the legal questions, well, number one, I think the external auditor should be
able to answer all your questions. You've paid a handsome sum through the years, for the last
seven years or so. I'm not exactly sure. I think since '89 or '90. And so they've been here for a
long time. I know I have a lot of questions, and I'm sure you do. And as far as the legal
questions, I would defer to the Attorney.
Commissioner Plummer: Well you know it's... You've furnished us with a copy of the
management letter, and I'm looking at the 1995, February of 1995. I don't see in that particular
management letter any indication of huge red flags flying of danger. I don't see anything in
there that even leads... Yes, they've made some observations and they're made some
recommendations, but it would seem like to me that they would have been aware, as you ar
aware, in a very brief period of time of some big red flags that I don't see flying.
40 October 1, 1996
1i
Mr. Stierheim: I might add also, I was embarrassed to find out that last year's managenler 's
letter was not even distributed to the Mayor and Commission by your former Finance Director.
Mayor Carollo: Well, obviously...
Mr. Stierheim: Not the current year. I just gave you that. It was dated March 22nd, I just gtjt it
within the last few days, and it's sent, but the year before, which would be for the '90...
Commissioner Plummer: March 22nd of this year. February of '95.
Mr. Stierheim: Yeah, '94-'95, that one, you didn't even see that.
Mayor Carollo: Obviously, we are going to taking some major decisions also, on who are the
people that this City has legal rights in going against.
Mr. Stierheim: I will make sure they're invited to either Friday or Monday's meeting, Mr.
Mayor.
Mayor Carollo: But at the same time, there are major players, the big fish out there that have
responsibility. There are also a lot of minnows that we have to also consider taking action. 'std
what I am referring to is that there are individuals that received City funds, either illegally or
under fraudulent assumptions, that received monies from the discretionary fund that d"d not do
any City services for the monies they received, some under contracts, some under no c !Tracts.
You have, for instance, some publications that were given checks to print an advertisement for
the City of Miami for one month, and it didn't come out until several months later. No one
bothered to look at it or care. I think that we also need to consider seriously taking legal action
against some of these individuals to return those monies to the City of Miami. For instance, we
have some... We might as well start laying it out... that have contracts. One in particular, with a
contract that claimed to have done work for the Department of Conference and Conventions.
The head of the Department of Conferences and Conventions tells me that no one has heard of
this individual, and no one has seen him do any kind of work for that department. 'There is no
record of anything that he's done for that department. Nevertheless, he's received thousands of
dollars in payments from the City of Miami. Christina, can you come up here for a minute?
Because there might be someone out there that might think that maybe somehow, this is
something that I dreamed up, that it can't happen in the City of Miami. And I want the public to
know that it has happened in the City of Miami. And the reason why we're here today is not
only because of the big things, but also so many of the little ones. Juan Amador Rodriguez. ci ,
saw the contract. In fact, I think you received a copy of the contract that signed, that he
supposed to have done numerous work for your department. Did you find anything whatsoever
in your files that shows that this man has done any work for your department?
Ms. Abrams: No. The professional service agreements for the period of October 30, '95 through
April 30th of '96 are for numerous services, including translation, public relations, et cetera.
There is no record in my department of that service being provided or of this gentlemen, in
particular.
Mayor Carollo: Do you know this gentleman?
Ms. Abrams: No. I have been Director of the department since December 1st of '95, and I have
not come across this gentleman in that time.
Mayor Carollo: Has anyone in your department come across him or had any contact with him?
41
October 1, 1956
Li
Ms. Abrams: Nobody in my department has any knowledge of this gentleman or that service
being provided.
Commissioner Plummer: Isn't he a radio man?
Mayor Carollo: Now, Mr. City Attorney.
Mr. Jones: Uh-huh.
Mayor Carollo: Here we have a contract that, supposedly, this City had with this individual to
do work for a specific department, and we have the Director of that department telling you that
no one has ever seen this guy, no one knows who he is, there is no record of any work that h `
ever done. Nevertheless, he received thouspnds of dollars from the City of Miami. Do you tl1;.'-'
that we possibly might have any legal recour•,. to recoup some of this money back?
Mr. Jones: Well, I'll research it and get back to you. I don't want to... Whether it be mor:. on a
criminal side and/or civil. But possibly a combination.
Mayor Carollo: Well...
Mr.. Jones: But to sit here and just give you, you know in a vacuum, without knowing
everything, I think you'd be ill advised. So I mean, until I'm in a position where I feel
comfortable that I have all the facts and can give you an educated opinion, I'm not going to sit
here and speculate. But...
Mayor Carollo: Well then, what I think we need to do, so you wouldn't speculate, so you could
give us an educated opinion, and so that we could begin taking legal action to recoup some of
these funds on this individual and others for the City of Miami, why don't you send someone
from your department, whoever you like, to my office. I'll start giving you everything that I
have on file. Now, Mr. Dipak, can you come up here please? Come up here. It's about time we
start laying everything on the record, you know. Have you seen this here before, sir, this list'r
names of organizations, individuals with amounts next to their names? Here, have a look at this.
There's dozens and dozens of pages there.
Mr. Stierheim: Yeah, I think we gave that to Mr. Phil Luney.
Mayor Carollo: No, you didn't have this whole list. Have you seen this? OK, go ahead to the
mike.
Mr. Dipak: This is a list of all the discretionary spending under the SPNA.
Mayor Carollo: OK, where did you see this at before?
Mr. Dipak: This was produced lately by me.
Mayor Carollo: OK, very good. This is what I want to make sure, because this was sent to me
by a City employee that told me that you produced it and gave it to them, so they could brim; it
to me. So I want to make sure that this is for real, that this is not just something that someb-. Jy
just gave me and invented, and doesn't really exist. Because there are dozens, and dozens a.. '
dozens of checks here, including one for four thousand five hundred dollars ($4,500) to the Secr,
(phonetic) Association of Florida that were issued out of that fund. That in violation of Stale
Law, I was not given copies of. When I requested this of the former administration some months
back, I requested it not only as a City Commissioner, but under the public records laws of
Florida. I requested that I be given copies of all the checks that have been issued, four thousand
42 October 1, 1996
r
five hundred dollars ($4,500) or less. The list that you have given me, and I appreciate this very
much, shows that there is a tremendous amount of checks that I was never given copies of.
Mr. Dipak. OK. What I have done over there basically is a list of all the expenditures ?hat ha
been there. Regardless whether it was forty-five hundred dollars ($4,500) or two tncusanu
($2,000) or twenty dollars ($20) or whatever.
Mayor Carollo: Right, you gave everything that was forty-five hundred dollars ($4,500) or less.
Mr. Dipak: Whatever. Right, yes.
Mayor Carollo: Which is what I had asked for before. And what I'm finding here is that from
the copies of checks that I was given, and based upon what you're giving me here that we
actually paid out, there are major discrepancies. I was not given dozens and dozens, and dozens
of checks. Like the one that I just mentioned previous, but not just that one. There were many
others that I was not given.
Mr. Dipak: OK. What I can attest to is a list which I've produced. And what was given to you
or not given to you, I have absolutely no idea.
Mayor Carollo: I understand that.
Mr. Dipak: OK.
Mayor Carollo: That's not none of your doing.
Mr. Dipak: Right.
Mayor Carollo: Now, my next question to you is, what have we done to make sure that the
original checks that were paid for on this list are not going to disappear, that we are going to
have copies of those checks? Because I'm also hearing some other rumours that are really
concerning me.
Mr. Stierheim: We... Mr. Mayor, I think I got a copy of that. I can't remember whether it was
yesterday or Friday. And that's been given to Mr. Phil Luney. And he is now at work with his
staff going back through every single check that you did not receive, and there are many. And
we will supply the documentation which should be attached to the invoice for the check. And
that process is underway as we speak.
Mayor Carollo: You know, Mr. Luney, can you get together with Charlene Watkins from my
staff? Because you received a partial list of checks that we have not received, but we had not
been able to go through this whole list and verify the ones that we had received versus the ones
we had not received.
Commissioner Plummer: Wouldn't the bank have a copy?
Mayor Carollo: Well, I don't know. I'm looking for the ones that the City has. That's the
easiest way, because if we start going to the bank, it's more cost that we're going to incur, and
there's no reason for that.
Vice Mayor Gort: It's going to cost you more.
Commissioner Plummer: Yeah, yeah. But I mean, they would have copy.
43 October 1, 1996
Commissioner Regalado: But Mr. Mayor, do we know how much we're talking about in that
long list of checks that were issued? How much money?
i Commissioner Regalado: We have not added it up, sir. But there are significant amounts. This
whole list that you gave me, do you know what it came to? Do you remember?
Mr. Dipak: It has. This is just an guesstimate. It will be over a million dollars ($1,000,000).
Commissioner Regalado: I'm sorry?
Mr. Dipak: Over a million dollars ($1,000,000).
Commissioner Regalado: Over a million dollars?
Commissioner Plummer: That's a guesstimate.
Mr. Dipak: But it covers a wide number of years.
Mayor Carollo: Yeah, there are many items here that are legitimate.
Mr., Dipak: Oh, yes.
Mayor Carollo: Let's not, you know, try to give anyone the wrong impression. But there are
items, like the other one that 1 brought up here, that are not legitimate. And there are other
people besides Mr. Juan Amador Rodriguez that have problems with some of the monies that we
have given them.
Mr. Stierheim: We'll give you the full report, Mr. Mayor.
Mayor Carollo: I appreciate it. And Mr. City Attorney, if you could assign someone from your
staff to meet with my staff and the appropriate City personnel. And Mr. Manager, if you could
assign someone from your office to also be present, because we want to go through marry of
these checks that were issued. And if there is sufficient legal justification that this City of Miami
has to take legal action to recoup those funds from any of these individuals, I'm of the opinion
that we should do that immediately.
Mr. Stierheim: Yes, sir. And I would concur.
Mayor Carollo: Thank you, sir.
Mr. Stierheim: All right. The only... Mr. Mayor it's getting late in the morning, but if you will,
if we can do the next small group. There is only about eight or nine, ten items there. And then
we'll stop, and I think the remaining initiatives, we can discuss. Some of those, I do not need
Commission concurrence. I bring them to you for your attention. If there are any concerns, you
can study those at your leisure, come back to me individually. We can discuss them at a futurF
meeting. But let's talk about the next group. And let me go through those rather quickly, if 1
can. Reestablish the parking ticket issuance to previous levels. Now, this is a decision that we
- need to involve the Downtown Development Authority, the Downtown Business Group and the
Off -Street Parking Authority, as well as the Police Department. We realize that the merchants
downtown, you know, that there is a parking problem. On the other hand, we talk about loading
and unloading for the merchants. You know, we try to do hours on that to minimize public
confusion. But what's happened is, we've lost over half a million dollars in revenue that would
normally come from the issuance of citations in the downtown area. And I think the merchants
wanted everybody to back off, and I think we did. On the other hand, given the circumstances,
not just for the revenue sake, but also, you know, for legitimate violations and what have you.
44 October 1, 1996
Mayor Carollo: Well, we've gone from one extreme to the other. And I could tell that you
the past months that I've been to downtown Miami, you have cars parked in the right-of-way u±
every street. It's become a free for all. So, we need to correct that and find a balance. Now, you
have the Police Chief here. You have a member of the Commission that is also the Chairman of
the DDA (Downtown Development Authority). I think we can address that quite well here.
Mr. Stierheim: Chief.
Chief Warshaw: Mr. Mayor, just a couple of points I'd like to make. Last budget year, '94-'95,
the Police Department's revenue from parking tickets was approximately nine hundred thousand
dollars ($900,000). This past year, through the first ten months of this year, its about five
hundred and fifty thousand ($550,000). A couple of things have happened. As a result of our
having lost a substantial number of officers, as well as a plan we put into effect with the DDA,
we've changed the deployment in downtown to include officers working later hours, as well
officers working in fixed posts. So probably, part of that decrease is attributable to that. Now,
over and above that, there are two other revenue streams that I don't have the numbers on.
Number one, Off -Street Parking has picked up in the downtown area, and I believe th;. Finance
Department receives a check from them on a monthly basis. In addition to that, there i` a squad
of about 17 employees who works for the Finance Department that we, the Police Departu.".- .:
trained last year that was started out to be kind of like as a "Scoff Law" squad to pick up vehicles
that have excessive number of tickets. They also have the authority to write citations, and I
don't have how much money they've made. So that could be the responsibility of where the gap
is, if there is a gap. And I don't know what those numbers are.
Commissioner Plummer: But, why is the parking ticket a police matter? I mean, you know, I
would say that every time a policeman spends an hour writing a parking ticket, there's an hour
he should be doing, hopefully preventive.
Chief Warshaw: Right. And Commissioner...
Commissioner Plummer: And we... Obviously, you don't have to have a sworn officer to write
parking tickets. Moving violations is a different story. But...
Chief Warshaw: And Commissioner, that's... And I agree with you, and that's a business we'd
like to get out of. And what we did, one of the major complaints of the merchants downtown
was that they couldn't find police officers during the periods of the day where high visibility was
required. So what we've done is, we have put fixed posts, police officers throughout the
downtown area, which means, they are to stay there. They are not to leave, they're not to be
writing any tickets. They only leave in the case of an emergency. Now again, this squad of
additional employees who are involved in writing tickets similar to what PSAs (Public Service
Aides) used to be heavily involved in downtown, is also bringing revenue in, but I'm not familiar
with what those numbers are. I don't know how much they... maybe Dipak can elaborate on
what they've brought in, in terms of...
Mr. Stierheim: About a million ($1,000,000)?
Mr. Dipak: About a million ($1,000,000).
Mr. Stierheim: Anyway, we will study this and meet with the appropriate organizations, I
mentioned several downtown, and see how we can best address this...
Mayor Carollo: We need to bring those revenues up, Chief.
45 October 1, 1996
r
W
Mr. Stierheim: ... and also restore that revenue stream.
Chief Warshaw: I agree.
Mayor Carollo: And enforcement is required in that area. Commissioner.
Vice Mayor Gort: Mr. Mayor, there's a task force composed of the Police and Off -Street
Parking to set up a loading and unloading zone with the downtown area, because that has been
one of the major problems. At the same time, the other problem that we have, after the
hurricane, many of the signs have come down. So we need for Dade County to bring the signs
up, because there is a lot of signs for "No Parking" that are nonexistent. And it would be very
unfair to ticket individuals if the signs are not up. The other thing that you have to look at within
downtown Miami and many of the areas is, if anyone... and this, we discussed this way back.
Any one individual who needs to pick up any large article that cannot be hand -carried ne d : to
come and park in front of the stores, and I think the Police allow and Off -Street Parking, to give
them five or ten minutes, as long as they know they and loading or unloading. So we Ila --
worked with them. But you also have three different people working within downtown, like the
Chief has stated. You've got the Off -Street Parking also, which provides the tickets, and you've
got the Special Task Force which is really concentrating on downtown, also. When you put all
those funds together, you realize it's quite a bit. But the downtown business people are willing
to work with us. I've got a letter from them where they are willing to get to join DDA like it
used to be at one time when the DDA wasn't in existence and join forces to try to save the City
some money and work with us. So I don't think there would be any problem with that.
Mr. Stierheim: I would like...
Vice Mayor Gort: But we would like to request from Dade County to make sure that all signs
are up.
Mr. Stierheim: Commissioner, with your permission we'd like to invite you to sit in, if it's
convenient with your schedule to participate with us in that process.
Mayor Carollo: Yeah, I think that would be important that he does, Mr. Manager.
Commissioner Plummer: Absolutely,
Mayor Carollo: Thank you, Chief.
Mr. Stierheim: Thank you, Chief.
Commissioner Plummer: No, have the Chief stay there for the next item.
Mayor Carollo: Yeah, he needs to.
Mr. Stierheim: Now, here is something that's near and dear to the Chief's heart and that is Law
Enforcement Trust Fund monies. I can remember how important it was for the Director of
Public Safety, and it does fund many programs that are not otherwise possible to fund, and some
of them that are very significant to law enforcement and the Chief's ability to, you know, mee,
his requirements with our citizens. On the other hand, given the enormity of what we face, if
there is a way that, temporarily, those monies can be used to offset expenses that would
otherwise...
Commissioner Plummer: Absolutely.
46 October 1, 1996
Mr. Stierheim: ... that would otherwise inure to the general fund, then I would like to do it.
Commissioner Plummer: No, you can't put them in the general fund.
Mr. Stierheim: I didn't say that.
Commissioner Plummer: OK.
Mr. Stierheim: I said those costs, that if unfunded elsewhere would have to be met by the
general fund. I'm not taking the money and putting it in the general fund. But there are some
expenses that the department has that would otherwise be paid that are legitimate, I think, under
the law. At least I hope so.
Commissioner Plummer: Don, how long have I been saying that?
Chief Warshaw: Well, Commissioner, there is still an ongoing difference of opinion as to
whether or not certain kinds of expenses can be funded, pursuant to this. Mr. Mayor, the State
legislature convened hearings last year, because there was some very substantial abuses - not by
anyone here - particularly in North Florida, in terms of some of the uses that these monies were
being applied towards. The other side of that is our revenue has substantially gone down. And I
think I've shared with you that we have done some things in this past year to try to increase the
revenue stream. Additionally, the State mandated a 20 or 30 percent absolute, in terms of
funding so-called crime prevention programs, which we were pretty much at that cap or beyond
over the years. So that takes that 30 percent out of the mix. As far as overtime, there are some
monies that can be used for certain kinds of protractive investigations overtime. As the
Commissioner said, you cannot use the money to fund general fund, routine overtime that .vould
normally have been funded by the general fund. I want to point out also, that in the las: Two
years we have started to use Law Enforcement Trust Fund monies to buy equipment That t
would have come to the general fund for, but knowing that there were not sufficient dollars
there, did that out of the Law Enforcement Trust Fund. And with your approval, because all
these things come before you, we will continue to do that to try to relieve the burden on the
general fund as we get more revenue in.
Mayor Carollo: Well, Chief, we would greatly appreciate that. As you know, we cannot instruct
you on how to use that money. So we would greatly appreciate it if you could see what areas
you could possibly help out the City and the general fund with.
Chief Warshaw: And I give you my word, we will be very imaginative and creative, and do
whatever we can to ensure that those monies relieve burdens that could otherwise, you know
come from the general fund.
Mr. Stierheim: We'll be very diligent to make sure the Chief keeps his word.
Commissioner Plummer: Yeah. You know I'm only going to make the same statement.
Mr. Stierheim: Not that I doubt him.
Commissioner Plummer: Merrett, I'm only going to make the same statement that I've made
every year when it comes to Law Enforcement Trust Fund. How others can be so much smarter
than we are. And you know, I was always told, "Well they're going caught, and they are going
to get put across the barrel." And you know what? It hasn't happened. But others... And I think
you can go around and look at other cities and see how they have treated... I mean, so you start a
pilot program, and that's really all that's required. You have a pilot program, you can put it
together for a year. You can do cars, you can do people, you can do all of that out of the
47 October 1, 1996
1i
program. And others are doing it. And yet, I was always told "Oh, they're not doing what they
are supposed to be doing. And they are going to get caught, and they are going to have to pay all
this money back." I've heard that story for a long time, and I've never agreed with it, and I still
don't agree with it.
Mr. Stierheim: Thank you, sir. Thank you, Chief.
Mayor Carollo: Thank you, Chief.
Mr. Stierheim: The next two items, we've already covered, I believe. Charge for special event
costs, and establish guidelines for the waiver for City fees. We'll be coming back to you with a
recommendation. The next one is expand revenue collection.
Commissioner Plummer: Can I go back one, Mr. Mayor? Special events.
Mayor Carollo: Mm-hmm.
Mayor Carollo: You know, I think that this Commission has got to establish a policy. Got to.
And that policy is on special events or special programs or things of that nature. What we have
found in the past is that people would go to the Administration to get a grant of money. The
Administration would turn them down, and immediately they came here and they were crying. I
think that we need to stop it in between the management and the Commission, and it can be
done. It can be done. Because what you need to do is have the Administration make the
decision as to the guidelines set by this Commission and then they don't come here. They either
qualify or they don't.
Mayor Carollo: But we have to establish guidelines in order to do that.
Commissioner Plummer: Absolutely.
Mayor Carollo: Otherwise...
Commissioner Plummer: Absolutely.
Mayor Carollo: ... you're preventing residents...
Commissioner Plummer: I mean it's...
Mayor Carollo: ... from their legal rights of coming before this Commission.
Commissioner Plummer: Oh, no. I never, never would do that. But they would have to be
qualified under the guidelines to have that appearance here.
Mayor Carollo: And I think part of the qualifications that we need to include is that they have to
have a positive recommendation from the Administration. Otherwise, they cannot come before
the Commission.
Commissioner Plummer: Absolutely.
Mr. Stierheim: All right, thank you.
Commissioner Regalado: Mr. Mayor, do we know how many events are we talking about or...
Mayor Carollo: Quite a few, Commissioner.
48
October 1, 1996
Commissioner Plummer: Oh, yeah.
Mayor Carollo: Quite a few.
Mr. Stierheim: OK, sir.
Mayor Carollo: In fact, I understand there's at least five waiting to try to get on the agenda for
next month. Maybe more by now.
Mr. Stierheim: The next one, I think we've pretty well covered, which is to expand our
collection rate from delinquent accounts. The next one is one that I think we can reserve for
discussion with our leaders of bargaining units. The other portion of that sentence, to redw.
managerial and administrative positions, I'm obviously reviewing the structure of th
Administration. And right now, everybody is overworked, I can tell you that, from the top do-w
because of all the studies and homework and everything that we've got to do. But at the end ; i=
the day, if I have any recommendations on that, I will deal with them. The recycling program, I
think, has a lot of questions, apparently, associated with it. I am not totally knowledgeable here.
Who can...
Mayor Carollo: We are also probably bound until the end of '97 on that contract. It does not
include sanitation and recycling but, that's a money loser for us. I think that that's another one
that we have to look to give to the private sector, too, because on this one, there is no doubt in
my mind that we're definitely going to save money.
Mr. Ron Williams (Assistant City Manager): Mr. Mayer, there is a County program, as you are
aware of that a number of other cities have joined in. And there is an interlocal arrangement
type process that makes the joining of that easier and clearer on both the cost side and what
would be required legislatively. So we certainly are prepared to look at that in detail, and
through the Manager make the appropriate recommendations.
Mayor Carollo: That is fine. But we need to also look at the privatizing of our recycling
program.
Mr. Williams: Well, that's what I mean. It is an interlocal with a private firm that collects
recyclables in Dade County and other cities within the County.
Mayor Carollo: How much are we losing a year on the recycling program that we have now?
Mr. Williams: It fluctuates. I don't know that we're actually losing at this point.
Mayor Carollo: We are losing.
Mr. Williams: Well, the reason I say that we don't know that we're really losing is because what
we've done is dedicated a force to it. I can tell you that the cost of the program is one million
dollars ($1,000,000). If we redirected those employees to other functions, to a cleaner City, to a
more... more emphasis to downtown commercial corridors or so forth, certainly that cost then
would be redirected toward a more sanitized environment, as compared to what we're paying for
the recycling program. So it's a matter of, at this point, choice. What is the priority? The
community likes recycling. "How can be best and most cost effectively manage it?" I think that
is the answer.
Mayor Carollo: There is no doubt in my mind, Mr. Williams, that we can accomplish this
without paying one million dollars ($1,000,000) to the private sector.
49 October 1, 1996
Mr. Stierheim: Thank you.
Commissioner Regalado: Mr. Mayor, what I have seen in my block is that people, myself and
other neighbors, they just set the papers outside in the blue box and there are people, private
people that just come around with pickup trucks and take what they want and leave. And I guess
that they go and sell those papers or those aluminum cans, and this is part of the problem.
Mr. Williams: Commissioner, you're absolutely right. There is a scavenger issue that was, quite
frankly, more of a problem to us when we were... When the markets were bearing fruits,
meaning that when the market was high and were getting revenue. We fought with that, and
with the help of the Police Department, we got it a little bit under control, because aluminum ;
cans and other recyclables were involved in that. I must say to you though, because the maritct
has gone flat, and the amount of revenue to be generated by that loss is not as great, thr;
scavengers are not as much of a problem as they have been.
Mr. Stierheim: OK. Finally, Mr. Mayor and members of the Commission, the last one. s you
know, have sat in different Managers' chairs, and I haven't looked at the specific authorization
for this forty-five hundred dollar ($4,500) discretionary authority. But I don't think that it's
appropriate. I think it should be rescinded. I think that your Manager, obviously, should have
the power in times of emergency to make expenditures, and within the limitations of his or her
budget, expend monies. But, I mean, I don't... never had a case where that kind of authority or
power was vested in a Manager, and I don't think it's appropriate. So, I mean that's something
that... I don't know where it is, if it's in the Code. Where is it?
Mr. Jones: The only thing that I am aware of Merrett, is that we have a forty-five hundred dollar
($4,500) limitation built in the procurement process where the Manager can execute a contract
up to forty-five hundred dollars ($4,500) without Commission approval, like... As well as I
could do or the City Clerk could do.
Mr. Stierheim: Well, that would be in procurement, and I think that's proper. But, I mean, not
to go out and enter into personal service contracts and willy-nilly... all kinds of things.
Mr. Jones: Well, perhaps what needs to be done...
Mr. Stierheim: Definition.
Mr. Jones: ... is that... It's more clearly defined. Because I can assure you that there are times
that you may have to...
Mr. Stierheim: Retain the services.
Mr. Williams:... on an... Like you said, on an emergency basis.
Mr. Stierheim: Sure.
Mr. Jones: Yeah. But if you...
Mr. Stierheim: I would agree with that.
Mr. Jones: You know, it is subject to further clarification. If you want to clarify it and put more
teeth in it, certainly, that's the Commission's will.
Mr. Stierheim: Let me look at that with the Attorney, because you could have guidelines. For
example, any expenditure under there should be reported to the Commission.
50 October 1, 1996
W
Mayor Carollo: All right.
Mr. Stierheim: Purpose, amount, and so forth should be subject to audit, internally or externally.
I mean, there are controls that can be put on it, safeguards.
Mayor Carollo: Well, this is what we need to do. I think that your office needs to work with the
City Attorney's Office, and then come back to us with some specifics. What was happening in
many instances was that when people... Well, one case, for instance, that I know of, it was two
ladies that wanted thirty-five thousand five hundred ($35,500) from this Commission so that they
could promote tourism for Miami. When they knew that this Commission was not going to
approve it, behind all our backs, they were given four thousand five hundred dollars ($4,500) for
a one -page advertisement that was supposed to come out in May of this year. The four thousand
five hundred ($4,500) was to congratulate the community for Cuban Independence Day, May the
20th. Well, that advertisement did not come out until July, two months later. It included a full
page of the Commission that included a former Mayor that by that time, was not the Mayor, had
died. That's an example of what I'm talking about, that I think we should look at people like
that and recoup monies that were given.
Commissioner Regalado: Mr. Mayor, in a case of any publication, if that would be the case, that
publication would have to give back the money to the source. If an advertising goes wrong on
this case, it was late or, for that matter, wrong, that publication should return the money. And
it's nothing unusual. It's done everywhere.
Mayor Carollo: That's correct.
Commissioner Regalado: So can we pursue this specific matter that the Mayor mentioned!
Mayor Carollo: Well, this is going to be something that, again, the Law Department is going to
have to sit down with us and give us their opinion. Because my understanding was there was no
contract given. There was just a check issued to these people, and I don't know what else we
could find out on that. But like this, you're going to find many instance, and this is what I'm
talking about, that we need to concentrate certainly on the big fish, the ones that are going to
hold the responsibility for million of dollars that we're in the hole for. But also, we have to go to
a lot of the small minnows that took three, four thousand, eight thousand in different amounts,
and collect on those that we can.
Mr. Stierheim: My Mayor, that concludes my... I think the other items we can take up in the
future, or I would welcome individual comments from members of the Commission. And we
will work towards Friday and/or Monday, and be in touch with you on Wednesday. I'm a little
concerned as to how much we have on our plate, because, obviously, we've touched on 30, 40,
50 items, all of which require study, review. So it's going to be a very busy time for yot'.•
Administration and all of our staff.
Commissioner Plummer: I only have one comment, Mr. Mayor.
Mayor Carollo: Go ahead sir.
Commissioner Plummer: You asked me to tell you one thing or anything that I was totally
opposed to.
Mr. Stierheim: Forgive me, I'm sorry.
Commissioner Plummer: No, no. No problem.
51 October 1, 1996
Mr. Stierheim: What was that, sir?
Commissioner Plummer: You've asked me to go record or any Commissioner...
Mayor Carollo: That's right.
Commissioner Plummer: ... of anything you were totally opposed to.
Mayor Carollo: Absolutely, Commissioner.
Mr. Stierheim. Yes, sir. I did.
Commissioner Plummer: Mr. Stierheim.
Mayor Carollo: We need it up front.
Commissioner Plummer: Under no circumstances will I ever consider turning my Fire
Department over to the County.
Mr. Stierheim: Thank you.
Commissioner Plummer: I want that understood from day one, no way.
Mr. Stierheim: OK.
Commissioner Plummer: OK? That's the only thing that, of these things that I've gone through,
that I have 100 percent opposition to.
Mr. Stierheim: Well, as I said earlier there may be another way to help us in that area.
Commissioner Plummer: Mr. Stierheim, you were a County Manager and a City Manager. The
people of this community have paid dearly for fire service to be the excellent ones that we
provide. I'm not downgrading Metro, but I don't think they're as good as mine. And as far as
I'm concerned, the people put their money where their mouth was to have a number one, first
class Fire Department, they've paid for it, and they are entitled to it, and I would not, under airy
circumstances, transfer my Fire Department from the City of Miami.
Mayor Carollo: OK, that's one statement made by one Commissioner on one particular item,
and that's one that I think all of us here tend to agree with.
Commissioner Regalado: Absolutely.
Mayor Carollo: We prefer to look at other options than that one. However, we need to start
working on what we have before us, to try and find the funding, to try to find the cutbacks, and
then make the final decisions. But I think that from the conversations that I've had with the Fire
Chief, with the Administration, what we're hoping that we could do is to go any other route than
that one. I don't want to end up punishing some of the employees that have been the ones that
have actually given the most to this City, in comparison to the whole work force. And I'll say
this publicly, no matter if other departments get mad at me.
Commissioner Dunn: Mr. Mayor.
Mayor Carollo: Go ahead, sir.
52 October 1, 1996
r
Commissioner Dunn: Since everyone is kind of saying the thing that they would perhaps not
want to see happen, Mr. Manager, if it would at all be possible, I would like to see the Solid
Waste Department remain intact. I mean that's... they've taken tremendous hits over the years.
It's almost like the small guys get picked on, and that's a gut issue for me.
Commissioner Plummer: Well, if I may. I have to put on the record, because this is something
with the Sanitation Department that some of you don't know. All right? Two years ago, the
private sector came to, for whatever reason, my office to consider going to privatization, and I
sent them to Carlos Smith, all right? OK? But there entry into the door was, "We can cut your
sanitation costs by 50 percent." You better believe I Iistened. I immediately sent them there.
They were willing to buy all of our equipment, but they would not take our employees. Arl{
that's where the thing really came down to the bottom line. If you look at your budget bock; :t
will show you right now that the Manager went to the union and said, "Hey, can you do it for thr,
same amount of money?" Your budget book shows two years ago, it was thirty-two m111�n
dollars ($32,000,000) for the operation of the Sanitation Department and 340, 360 employees. I
could be wrong on the number. This year's budget and last year's budget was exactly 50
percent. Now, the real key there was that we said to the union, "Can you do it for the same?
But the one thing we are going to be looking out for, is the level of service." That's why today,
they've got "X" number of dollars to work with, Merrett. You see them out on Saturdays. You
see them out late at night. You see them out on Sundays. And they are fully aware that if the
level of service drops, that we were intending to go private. So I think that, you know, when you
talk about the ones, the least ones on the totem pole, they have lived up, from what I am telling
you at this particular point... It doesn't mean they can't do better. But by God, when they went
to them and said "Hey, can you do it for the same amount?" They said, "Yes." And the only
thing... there's no change in the budget. They are not getting a dime more than before, but, in
fact, the level of service had to be at that level or better, and I think we've seen it.
Mayor Carollo: Well; t iar.`V,;xceIlent, Commissioner. We're grateful for that. But I still think
this Commission has a responsibility to have the Administration study to see how much more we
could possibly save if we will privatized that department.
Commissioner Plummer: Oh, the way he's talking...
Mayor Carollo: We got a sixty million dollar ($60,000,000) question to consider, and we have
to look at all options of that. Once the last day comes, we could decide what goes, the whole
City of Miami or part of it.
Commissioner Plummer: Well, Joe, I don't disagree with you in any way. And I think what the
Manager has brought... let's just use the Sanitation Department. Maybe we only need a trash
pickup every two weeks, OK? And maybe that would cut cost. Maybe instead of twice a week,
we are talking trash... garbage pickup. Maybe we need to talk about that. There are areas there
that I think that we give such a superior service, compared to the other cities or the County, that
we could cut back in some ways. And I'm willing to do that and to explore that.
Mayor Carollo: That is true. I also think that we need to look at some of the people that are
running that department in the trenches, and make sure that they're giving the best instructions
and leadership that they could possibly give. You well know some of the complaints that we
been receiving out there.
Commissioner Plummer: Oh, of course.
Mayor Carollo: So we need to look at all that.
53 October 1, 1996
U
Commissioner Regalado: Mr. Mayor, just a note about trust. I think that this Commission and
this Mayor wants the City employees not to have the fear that they have now. I've talked
many City employees, and I've seen fear in their eyes, in their face, and they want to come
forward and tell things that they think are wrong in their departments. Although they believF
that if they would do that, they will be punished. I, on my part, I've talked to several employees.
A woman came crying to me to say things that she thought that were wrong in her department,
and she said that she had to do this by night because otherwise, she could be punished, lose her
job, and she has the responsibility with a son. I just want to tell the City employees that we are
here to receive their information, not that we're going to use that as a matter of fact. But at least
that they feel comfortable in coming to us and telling us what they think is wrong and it's a
matter of trusting us that we will... the conduit to the City Manager and to the different
departments to fix those things that they think are wrong. And I just want to reaffirm that I will
be willing to listen to every City employee that has something to say.
Mayor Carollo: Vice Mayor.
Vice Mayor Gort: Also, that I think we've expressed in the past, any employees that think
there's ways or ideas, bring them forward. I mean it's all team work, we all need to wo: ,
together.
Commissioner Plummer: I would just like to put on the record, very definitely, we want to know
where there's problems. But I think that what should be done, truthfully, is to take them directly
to the Manager, OK? What's what the Charter -provides for, instead of them coining to us, and
we understand it one way, and then we go to him, and we tell it to him the way we understood it.
I think that I saw in one of his... I really enjoyed, Merrett, you made a comment here, that I'll
read into the record. Maybe some City employees that are watching this, and here is... I'll read
it verbatim in which the Manager states: "During our budget discussions, I assured everyone that
any skeletons taken out of the closets and put on the table that day would not be the
responsibility of the Director, but that any that came later would be." That was a very interesting
comment. And I think that if I know Merrett Stierheim at all, his door is open. He is not a man
that would be letting retribution take place, and I think that people should go directly to the
Manager to cut us out as middlemen. If they don't feel comfortable, that's a different story, but I
would encourage to try to get to the bottom of the problem, that the people that have information
would go straight to the Manager or his representatives or designee, because he is a very busy
man.
Commissioner Regalado: J.L., if I may. People know about Merrett Stierheim and people, City
employees, I'm sure that they know that they can knock on his door, and he will be there for
them. But you have to realize that there are people who see us all the time, that know you for
many, many years.
Commissioner Plummer: Of course. Absolutely.
Commissioner Regalado: And they believe that they have the best way to reach the Manager
through you, Willy, Mayor Joe, Richard, myself. I have people waiting at the door of the radio
station. Three employees... I'm sorry. Three employees waited at the door of the radio station
because they say, "I didn't even want to come to the City Hall." They rather talk to me there.
And I appreciate that confidence and the information that they gave me, I think it was
worthwhile, and I'll pass it on to Merrett, and I'm sure... What I wanted to say is that we are
here, and we're not going to take whatever anyone says as a fact, but just as a piece of
information that we need to give to you and to us, to understand what's going on in the City if
Miami.
Commissioner Dunn: Mr. Mayor.
54 October 1, 1996
1
i Mayor Carollo: Commissioner.
Commissioner Dunn: Please. In addition to that, it was alluded to that in some of the
departments, there were numerous individuals who had jobs who were not working, people who
were not carrying out their responsibilities, who were like sacred cows. Could we, could I or this
Commission, the Mayor, suggest that we identify those persons immediately and those
departments, with the assistance of the department heads, so that we can cut any excess fat that
might be in personnel?
Mr. Stierheim: I am. If you...
Commissioner Plummer: A friend of a fried.
Mr. Stierheim: If you note in the memo, I have asked the directors individually that if they have
conditions like that, that involve the unclassified service, that I would be most receptive to any
recommendations, and I will take appropriate action. And obviously, where it involves classified '
service, we have to deal with the civil service rules and regulations and the board, but there are
procedures for employees who are not working. I mean, you know, the vast majority of our
work force are loyal, hard working, dedicated people. They are members of our family. But
there are some, I am told, that, you know, have their jobs for reasons other than the sole
determination of the Director or the division head or whoever it might be. And, you know, I
think what I said about... we've come to a point where we've just got to change the way we do
business. Mr. Mayor and members of the Commission, I really believe that's true. And that's
not an indictment on anybody personally or anything else. But I think if we are going to sc tv-
this problem and set this City in a proper direction, then as far as the Administratioi, a
concerned, it has got to be professional from "A" to "Z" and you can take it to the bank. A.., if
it isn't that way, then I think we're just kidding ourselves.
Commissioner Plummer: The only problem that I had in reading from that same verbiage that I
just did in the memo you sent, I think the only problem that I had was that you said that during
that day, if they laid it on the table, gave the impression that today, if a department head came to
you, it's his red wagon. I think there ought to be a deadline set by you that a department director
has until...
Mr. Stierheim: Friday.
Commissioner Plummer: You've used October 4th fluently.
Mr. Stierheim: October 4th.
Commissioner Plummer: That if he comes to you by October the 4th and gives you this
information, it didn't mean that one particular day as it is written.
Mr. Stierheim: No. And I said the metaphor about the skeletons in the closet was a good one for
this set of questions.
Commissioner Plummer: Yeah, but you said "put on the table that day" which is in the past.
Mr. Stierheim: Right.
Commissioner Plummer: I think that if you got October the 4th...
Mr. Stierheim: The door is still open.
55 October 1, 1996
Li
Commissioner Plummer: ... they all know the door is open until then, and they take it from
there.
Mayor Carollo: Well, we have agreed, Mr. Manager, by Wednesday evening, you will let me
know if you prefer Friday or Monday as the day that we are going to hold a special Commissa
meeting to declare a fiscal emergency.
Mr. Stierheim: Yes, sir.
Mayor Carollo: That same meeting, after we're done, we will invite on that same day Deloitte
and Touche to come before this Commission...
Mr. Stierheim: I have that down. I'll take care of it.
Mayor Carollo: ... so that we could ask all the questions that we need to ask of them.
Mr. Stierheim: Yes, sir.
Commissioner Plummer: I would hope, Mr. Mayor, that we could, whatever day chosen, we'd
start at ten o'clock, to allow us to go to our offices before.
Mayor Carollo: Ten in the morning will be fine, Commissioner.
Mr. Stierheim: Ten in the morning?
Commissioner Plummer: Yeah. My customers don't make appointments.
Mayor Carollo: Lastly, we said when we started that we would give an opportunity to the
respective presidents of the different unions to make any statements or ask any questions, also.
So, having said that in the beginning, I shall now give that opportunity to those who would like
to.
Mr. Shorty Bryson (President, Miami Firefighters Union): Thank you. Shorty Bryson, Miami
Firefighters. I feel like I'm getting shorter all the time.
Commissioner Plummer: Shorty.
Mr. Bryson: You know, there was a movie out a few years back, probably ten, called the
"Cuckoo's Nest." And in that movie, about twice a day, the nurse would come un and she'd say,
"It's medication time." And I think we better have some medication time for the employees.
That's not a shot, that's a time to take a little medicine, I'm a little worried. You know, the other
night, I stood up here and I made a couple points, if you recall. I committed my union, that if vie
were allowed to verify the situation, get all the information we needed, and that if there was a
sharing of the pain that we were committed to helping solve the problem. And we're still
committed to that. I also made a statement that we were committed, that if we did not get the
information and we were not allowed to share it and verify the problem, we would be defensive.
We would defend our contracts. And I made the statement that any reasonable person would do
that. And I thought you would be the same way.
Mayor Carollo: That's correct.
Mr. Bryson: And I believe that, that was the feeling of the Commission. Today, this morning
when I came here, we've been in contact with Budget since the other day when we gave the
56 October 1, 1996
I
Manager our request for public records, and from Budget, we've not received one document.
We did receive spread sheets from George, from the team of the Manager. One spread... actually
four pages of spread sheets that mean absolutely nothing to us. I think the Manager will back me
up on this, that when all this information is shared it will be this thick, and it will require
questions and answers of people that know those answers. The same way, Mr. Mayor, that you
said you have to justify to the citizens of Miami your positions, and show them that you do
everything you can before you pass on costs, I have to do with my membership.
Mayor Carollo: I understand.
Mr. Bryson: They have to see... and I don't know how we do this. It is kind of like you're
paying for something to get something, and you know how it is with the money. You put o:af
one hand, but you put out the other hand, trusting on who is going to give first. I don't krc, ,v
whether the fees are going to go up first, or you're going to ask the employees for concessions
first. I know what my employees that I represent will want. They will want, an "if and then." If
you do this, then I can take them something. I lead my labor union by trying to look for the right
thing to do, and then I take it to them and try and explain the logic, and why we should do
certain things. In standing here and saying we are committed to helping, it is probably not the
most popular view. Many of our members would love to say, "Fight to the bitter end." I don't
think that's wise. I don't think it's wise for you to impose anything. I don't think it's wise to
declare... you should declare a financial emergency, but I don't believe at the same time you
should say, "We're negating those contracts." I think that if we get the same amount of
cooperation that the Manager's team has had with verifying the numbers we can be done in a
very short period of time. But we have to get the documents, we have to have access. That
would mean that within two to three weeks, if it's done correctly, we could be at the point w>> -re
we determine how big the nut is, and then how much one side in revenue enhancements we'll
able to bring in, versus other suggestions and the necessary concessions by employees. We'r- in
the boat, and we got a hold of an oar. Don't toss us out. I mean, what it comes down to is, y
have to believe that as many good people as you have working for you on one side, we 17avJ
equal amount of resources that we will muster to defend. That is not a wise move to make.
Mayor, you said the other night, you said, "I hope we don't have to knock heads over this one."
We may have to. I've put it in a letter to you yesterday, and I sent it to everybody.
Mayor Carollo: And I appreciate your letter.
Mr. Bryson: OK. We do not want to knock heads. We want to be part of the solution. And we
want to work through this process in an orderly way. The Manager has given us approximately
an hour and a half of his time since this started, where he's explained things. He has given me
open access to him on the telephone. He's even given his small phone number which I'll publish
in a minute. But...
Mr. Stierheim: I'll throw the phone away.
Mr. Bryson: But he doesn't have a lot of time. He doesn't have a lot of time. And that's nuL
anytime for me to make decisions for my members. So with that in mind, I ask for a
commitment from the City to throw the resources at us, so we have no excuses to say, "We
couldn't make a decision because you wouldn't give us the information." And then it will be ou-
fault, if we don't do the homework. Believe us, that economist will be working 110 percent, if
we get all the information.
Mayor Carollo: Well, I think that everything that you said here is reasonable, but...
Mr. Stierheim: Can I respond, Mr. Mayor?
57 October 1, 1996
Mayor Carollo: Yes, Mr. Manager, go ahead.
Mr. Stierheim: I... And I am in full agreement with everything that has been said. They gav,
me letter and they asked for "A, B, C, D, E, F, G, H, I," and so forth, and we've been working on
ten different kinds of projects. The problem has been ours. I can assure you that I've taken one
day since I've been with you, and otherwise, it's been 16 hours a day. And the same is true fe-
everybody here; not just George, and Bill, and Roger, but Dipak and everybody else. You know,
when you ask... and I am saying "you" generically now. All of the leaders asked to sit in on the
budget hearings. That was a bit unusual for me. I'm glad you were there. We met ahead of time
privately, and then... I'm really pleased that they were there to hear everything that we discussed.
Because at the end of the day, there aren't any secrets. None of the work papers, everything that
we had, there is nothing secret about it. It's public. What the number is, the number is. And if
its wrong, then I want to be the first to know that a number is wrong. I think they're right, and
everybody on this side of the table, if you will, thinks they're right. The problem I have, Shorty
and - I mean, let's just talk about it openly - is right now, I am camped on Dipak and other
people in Finance to get out the work, get out the capital improvement number. I laid a number
on you today, because that capital improvement number, part of it goes over in those hard
numbers on the general fund side. How big is this problem, you know? It was a moving t; !; et
all the way through. We had to reconstruct the budget. We had to go through every one of t.''wse
code items and say what has been the history, what is reality, what will the revenue be, what Till
the expense be? And that's how we came up with the 39, and the 12, the 13, fifty-two million.
I'd almost like to get Mr. Jessup camped over at the River Center. I'll give him an office ill the
Manager's office. I'll let him sit in on the deliberations, and the research and the review fll:l-
time. He can sit when we're... in the inner sanctum, when we're trying to trash it out. What do
we owe on the computers, what do we owe on this, where is that money, where is this money?
That's the process. And I mean, you know, personally, they went till five -thirty in the morning
one night, when I gave them a deadline. It was a whole army of people down there. I went to
three -thirty and so, I mean, it's long hours. Now, we've got a whole bunch of studies we've got
to do to try to get back in here in the next few weeks to the Commission and lay out a blueprint
about how this community solves this problem. And I am not ducking the reports. You'll get
the reports. But I am saying if it's Mr. Jessup, get him up in our offices up there. He'll be right
there in our center working with everybody, full access, full disclosure, no secrets, because there
is nothing to hide.
Mr. Bryson: Well, Mr. Manager, I can't agree for Mr. Jessup because he has all his computer
software, hardware everything at his house or wherever he works. If it's possible for him, we'd
pay him.
Mr. Stierheim: We'll give him a computer. We'll let him tie in to ours.
Commissioner Plummer: Be careful.
Mr. Stierheim: If it interfaces... whatever has to be done.
Mr. Bryson: OK. We'll be happy to explore that, and I do like the idea. In fact, I was going to
suggest today that we get somebody that's basically assigned to him. The person... what you
said before, a "go -to guy," and also, the fact that he has every document he needs, and probably
given to him in this forum or whatever we can use to make it quicker. You know, we don't want
to run into any road blocks here. I am telling you the honest to God truth. The way this man
works is, he takes trends for the three or four years. It's not a matter of just coming up with the
number. At that point, we sit down with people that know the answers, just like you had to do.
And we have to ask some questions, and say, "Why did, you do this? Why did you do that?"
It's not going to be a matter of looking for fifty thousand here, a hundred thousand there. We're
talking millions. And the last point I'd like to make, Mr. Mayor, is... You said it earlier. And
58 October 1, 1996
for the employees that are sitting here and those watching on television, I think it's important to
realize that if this nut is sixty million dollars ($60,000,000), that under twenty million of it is
recurring. The other is a one-time "fix -it -up" type of deal, or part of it, anyway. Balancing the
budget is a different issue than the whole nut.
Mayor Carollo: That's correct.
Mr. Bryson: And so when we look at that, I mean, it has to be aware. We are going to make tt?i
problem seem so big to some people that they're likely to dive out of the MRC (Miami Riverside
Center) on the top floor pretty soon, out of jails, crashing plane with no parachute. So, wi.. that,
I thank you. My letter was sincere opening the contracts. I told the Manager, I said "Whit Ne
are looking at in our union is at some point, looking at concessions" - not opening our cont,?.--t -
"looking at concessions," which is the same thing, dollars. That's what you want, that's what :we
are looking at.
Mayor Carollo: Thank you Shorty. The recurring number is between twenty, twenty-five
million, which is bad enough, but it's something that we can handle. The tough part is that we
have to find approximately, give or take a few millions, around sixty million dollars
($60,000,000) for this year's budget. Out of that approximately twenty million ($20,000,000) is
a carryover from this past fiscal budget that we're carrying and then the rest is another twenty
million that we are going to have in a shortfall for this budget, and the capital outlay that we
have out there. So, for this year, it's a real, real problem. And then we have to find solutions to
it quickly, because every day, every week, every month that we wait, it becomes more and more
expensive. Now, some of the actions that the Manager has taken in his memorandum is going to
start cutting some of those losses, but nowhere enough. To cut sixty million dollars
($60,000,000) from our budget, and 1 say this respectfully to all the employees and all the union
presidents that are here, no matter if you'll give in 100 percent in every request tha`,. this t"
might ask of you, it's still not going to be anywhere near enough to balance our budget
everyone is going to have to share in the pain. And I know that maybe there are many that
that somehow, we're going to find the cuts or the new revenues so that we don't have to touch
your domain. I don't think anyone is going to be spared on this one. When you're talking about
anywhere from 22 to maybe 25 percent of our budget that's going to have to be cut, no one is
going to be spared.
Commissioner Dunn: Mr. Mayor.
Mayor Carollo: Commissioner.
Commissioner Dunn: It's more of a morale issue, I think now. And I would like to make this
statement to all of the department heads and all of the leaders, union leaders. I think it's
imperative that at this point in time, that we show a great deal of composure, and demeanor, and
courage, and I mean, we are going to start... I read you clearly, loudly and clearly, Mr. Manager,
Mr. Mayor, as it relates and we're... for my tenure, we are prepared to do what we have to do as
it relates to our office. And everyone is going to have to make those tough decisions, but this is
no time to be a popular figure. This is the time to do what is best for this City. And we have a
choice. Either we work together or we perish. And I did not know how timely that statement
was a week and a half ago, but it's really timely. And I believe that we need to show a certain
degree of composure. In my church, whenever there is a crisis, I tell all of our leaders, do not
panic in front of the congregation, because if you panic in front of your department, they, too,
will panic and then everybody will panic. So it's important that we show composure, that we
show courage, and I'm confident that we're going to come out of this. We've done it. We've
had other crises before... not like this in the City. But it's just a matter of everyone, everyone,
everyone working together. There are no sacred cows here. Everybody has to take some kind of
loss.
59 October 1, 1996
Mayor Carollo: Thank you, Commissioner. Any other union president or representative that
would like to make any statements or ask any questions of the Commission or the Manager? Mr.
Cox.
Mr. Charlie Cox (President/AFSCME - American Federal, State, County, and Municip::
Employees, Local 1907): Mr. Mayor and Commissioners, I've sat here for two hearings nc))� .,,
watched my employees get beat up on. My history speaks for itself. We've had two other •ises
before this one, back in '91. and also '95. I watched over 500 employees go out the dc, i
watched a thousand that I have left, and I personally went to all of them and said, "E,o rr.,Ae
with less." And we are the ones getting beat up here. And I think it's wrong, and I think 1-at if
my history speaks for itself, as much as the Manager has been working 16 hours a day, I can
guarantee you, I didn't go home before he did, And 1 was probably there after him and his team.
And the unions are working just as hard. I think there are alternatives, but I don't think the way
to do it is by beating people up. It never worked that way before. And I think there are some
good alternatives in his message, and I think we'll come up with some. But just like you, we
have time, and we are working on it, and as soon as he's going to sit down and meet with us, I
think those alternatives will come out, and not necessarily what is on the list. But there are a lot
of alternatives. And this City is going to be here long after Charlie Cox leaves, and tong after all
of you leave. And the public will be here after that, also. Thank you.
Mayor Carollo: But before you go now, Charlie.
Mr. Cox: OK.
Mayor Carollo: Maybe I've missed something. You were saying that this Commissio s ,..�s
beating up on your employees. Explain to me how we were beating up your employees.
Mr. Cox: Well you know, there is...
Mayor Carollo: Maybe I missed something.
Mr. Cox: There's systems, OK? And we have trades people, which I came from the trades. I
have been with this City 24 years, and I can tell you all of them are licensed. They all came
from different places. They didn't come here, because you have no training in this City.
Mayor Carollo: We are not talking about that. How are we beating up on people? Please
explain.
Mr. Cox: Were you are saying that people take nine hours to change a door...
Mayor Carollo: I didn't say that.
Mr. Cox: That's the system.
Mayor Carollo: I think you missed out on what we were saying.
Mr. Cox: We are talking about lights not working in Kennedy Park and...
Mayor Carollo: No. What we were saying... Nobody talked about Kennedy Park here. What
I've said - and this is me, not any member of this Commission - was that we were billed for one
project that took about one hour or less, in my office, for nine hours.
Mr. Cox: Mm-hmm.
60 October 1, 1996
Mayor Carollo: I am not blaming that on the employees. The former Manager's relative, that's
the Deputy Director now of another department, was the one that included that. I even asked for
documentation on that. I haven't gotten it. We also were billed close to forty dollars ($40) an
hour as the cost for having that work done, when you and I both know that those employees,
don't make close to seventy thousand dollars ($70,000) a year, that they make maybe somewhere
in the neighborhood of ten to fifteen dollars ($15) an hour. So no one was beating up on any of
those employees.
Mr. Cox: But the system itself, Mr. Mayor... and I can tell you I am part of that system for 24
years. There were plenty of places that we worked at through my career. We were not even
allowed to give work orders to or pass them. There was a period of time that the worh we did
down here at City Hall, we did not give work orders. That system has been here forever. A,i..=
you are correct. What the Director told you this morning, that our employees make an average
of fifteen dollars ($15) an hour, that is correct. We don't have any tradespeople making seventy
thousand dollars ($70,000) an hour... a year.
Mayor Carollo: And that's what I said. But the impression that is being given to the public is...
Mr. Cox: But the work order system has been the same.
Mayor Carollo:... that those employees are making that.
Mr. Cox: No. The work order system is the same as when I started here basically twenty
something years ago. And we were given work orders when we go out in the morning. There
are 130 parks in this City. We have probably three linemen that take care of all of those parks,
take care of all the street lights in the City. When I started here, we had 14 on the crew. We are
now down to three. I mean, when you don't have the manpower and you keep increasing the
work load, there is a problem for everyone. We have buckets that are probably ten to 12 to 15
years old. Those are all problems with the system that are not going to be able to correct
overnight.
Mayor Carollo: Charlie, I'm...
Mr. Cox: And we have lived with that, and we will continue to live with that, and do the best job
that we can.
Mayor Carollo: I am not questioning that you have some departments, some areas that you are
very much in demand. There is no doubt in my mind that that's the case. There are other areas,
some other departments that maybe you are not in demand, or maybe you have people that aren't
carrying their load, and some of the other employees are having to do their job and a lot of the
job of the other individuals. And all the employees here know that, because many of your own
members of your union, maybe some of your board of director members have been the ones that
have been coming to me, not I looking for them to see what they have to say to me. They have
been calling me at my home, coming to my home, to my office and giving me the complaints.
Now, the one thing that I think we've established is that no member of this Commission has been
beating up on any of your union members, whatsoever, because I haven't heard anything from
you that could contradict that. But some of these same complaints that you are giving me, you
know, Charlie, some of those are your own fault, because I cannot think of any union
representative or few people in this City government that were closer to the former Manager than
yourself. So if you didn't lay this out to him and work with him to clear those up, and then come
to this Commission, that's your fault. That's not our fault. You were one of the closest people
to the former Administration. You worked with them. When you came to my home on several
occasions, the minute you left my house, you were on the phone calling the previous City
61 October 1, 1996
Manager within a half hour after you left my home. So don't tell me now that this Commission
is trying to beat up on your employees when, on the contrary, we are trying to help your
employees and help this City.
Mr. Cox: OK, I hope...
Mayor Carollo: Would you like to say anything else, Mr. Cox?
Mr. Cox: I what?
Mayor Carollo: Would you like to state anything else?
Mr. Cox: I have called your office personally. I do not get returned phone calls. Some of the
things you said are not true, Joe. I do not get on the phone to the ex -City Manager after I leave
your house. I do not...
Mayor Carollo: Well then your board of director members lied to me? Some of your own
employees lied to me.
Mr. Cox: Well, that happens. Some of your employees lie to you. I can tell you exactly what's
been said there, but you know what? This is not "conquer and divide." That will not happen.
Mayor Carollo: No, Charlie, this is not "conquer and divide." And neither was trying to force fc~
this City to make some 40 people permanent civil service employees from unclassified
classified, like you tried to do with some of the same people that got us to the same problem "ha..
we are facing here today. That was not looking out for your members of the union. That
looking out for Charlie Cox. So I am sorry, I cannot...
Mr. Cox: That was looking out for Charlie Cox?
Mayor Carollo: I cannot have much pity for your words here today. I do for your employees,
and I do for the employees of the City of Miami, but I don't for yourself.
Mr. Cox: OK.
Mayor Carollo: And as far as you, personally, go, you could call my office all you want. When
I have the time, as the Manager, I will meet with you. I think that Shorty Bryson knows that. He
has called me. I returned his call. I've spoken to him. But what I suggest, Mr. Cox, is instead of
going and trying to call meetings and threaten that you are going to sue the City of Miami, yc;u
are going to do this, you are going to do that to try to save your own hide with your own
employees that you have been having a problem with, with your own board of directors, I
suggest that you do what Mr. Bryson from the Firefighters union has done, and try to work witl,�
this City so that all of us could save the City of Miami.
Mr. Cox: Joe, I will say one more time, my history speaks for itself. And I don't think I have a
problem with my board or my union membership, and I think I follow the direction of what they
want. Did I make a mistake with 40 unclassified employees? I did, OK? But you know what? I
am big enough to own up to it. OK?
Mayor Carollo: Well, I am glad you are doing that, sir. But if it hadn't been that this Mayor
stepped in, we would have had 40 more people that would have been classified, and many of
those really shouldn't have been classified.
Mr. Cox: That's possible, but you know what? I don't have a relative that works in this City. I
don't have a person that works in this City that's tied to me in anywhere, and I came through the
62 October 1, 1996 '
i
�'i
front door like every other employee that I have came through the front door. And a lot of those
unclassifieds have civil service status that are going to go back to civil service positions, �-ven
when they are gone. And that's our system. A lot of them have come through civil service
positions to be there.
Commissioner Regalado: I just want to set the record straight, if I may. You mentioiiec
something about somebody saying that the lights on Kennedy Park don't work. Did I say that?
Mr. Cox: That they are not working when you are walking, that's correct.
Commissioner Regalado: No, sir.
Mr. Cox: And what happened was...
Commissioner Regalado: No, sir. 'rhat was three meetings ago.
Mr. Cox: You notified the...
Commissioner Regalado: That was three meetings ago. Now, what I said was that coming the
winter when the time change...
Mr. Cox: Time change, yes, sir.
Commissioner Regalado: ... was implemented, the system was not changed. I was not blami.,
any employee at all. In fact, I know personally all the employees in that park. They are good
workers, they are very good workers. But I did not rag on your employees.
Mr. Cox: There is... What happens is two times a year, we go around changing the time clocks.
The problem is the manpower was not there to do that. The time clocks... Your employees in
that park cannot change the time clocks to change over time zone. Those lights work on a time
clock, and they come on by the time.
Commissioner Regalado: But that's OK. I was not blaming the employees.
Mr. Cox: No, I didn't say you were...
Commissioner Regalado: And you implied...
Mr. Cox: No, sir.
Commissioner Regalado: ... that somebody said that.
Mr. Cox: I did not imply that. I said to everybody sitting here, we do not have the amount of
employees that we had before, and we cannot get around to 130 parks like we used to.
Commissioner Regalado: I just want to set the record straight that nobody...
Mr. Cox: I did not imply. I understand, but we do not have the manpower that we used to have.
Commissioner Regalado: ... nobody is blaming the employees here.
Mr. Cox: You said that there was 360 Sanitation employees before. Well we had 2,0000 nine
years ago, and we are down to 1,000 now. And there is just not enough bodies to cover the area
and get everything done. Thank you.
63 October 1, 1996
r
Mayor Carollo: Thank you.
Commissioner Plummer: Mr. Mayor, if I may?
Mayor Carollo: Yes, Commissioner.
Commissioner Plummer: I assume that we are about ready to close for the day. I would like to
take the opportunity to thank State Senator Ron Silver for being here...
Mayor Carollo: Absolutely.
Commissioner Plummer: ... so he will know firsthand what our problems are, because we
going to be knocking on his door after the 1st of the year. And I just am appreciative that he
took the time out of his schedule to be here so that he would know firsthand, that people didn't
have to tell him what the problems were, he would know.
Mayor Carollo: Ron, can I ask the following of you? If you could come up please, and thank
you very, very much for being here today. And not only today, but you've been on board for a
long, long time helping. I'd like to ask you to see if you could take the lead as our Delegation
Chairman of Dade County to set up a meeting of our whole delegation, particularly all those that
part of their district covers any area in the City of Miami, so we can meet and see if we could
formulate a plan of going to the legislature and try to find some grants for the City of Miami; or
at least on long-term loans that we can have. If we get by the next two to three years, we'll be in
great shape for the future. The problem is getting over the next two or three years. By that time,
we will have enough new projects on board, enough construction on board that the City of
Miami will be well into a fine and stable, financial path. Right now though, is when we need
that help to be able to accomplish that. So if you see fit, if you could possibly set up a meeting
between as many of the delegation members as you can, so that we can try to see if we can cc me
to a consensus. I'll invite all the different lobbyists that we have down here, pro bono. So that
they can also help and be part of the solution.
Senator Ron Silver: Mr. Mayor and members of the Commission, I will, on the moment that you
notify me of a date that's convenient to you...
Mayor Carollo: You choose the date. I'll make myself available any date that you all could
make it.
Senator Silver: It will be done within 24 hours of the date that we have and I'll notify all the
members. As you know... and I appreciate your remarks very much, and J.L.'s remarks. And
having worked with most of you in the past, I want to make sure that I set the record straight,
also. I'm down here on a dual capacity since part of the City of Miami covers my district. I am
the Chairman of the delegation, but I also represent the Board of Trustees of the Retirement
Fund. So I just want everybody to know that I'm on dual capacities, and I have an interest in all
these issues. And whatever we can do, as the Manager mentioned, on matters that are before the
legislature, as far as revenue sources are concerned, and J.L. mentioned that before, we want to
go forward with that. And we want to help and assist so that those things can be done. Am.
anyway, we'll set that meeting up, Mr. Mayor.
Mayor Carollo: Thank you. You could either use my conference room or any place that you so
think will be best. Thank you.
Senator Silver: Very good. We'll do it. Thank you.
64 October 1, 1996
r
Mayor Carollo: Mr. Vice Mayor.
Vice Mayor Gort: Mr. Mayor, in closing, I'd like to close with a policy remark that we've had
crises before. And when I originally got elected, we were in one of the crises, it was back in '94-
'95. And I would like to tell you that at that time, I had the opportunity to sit down through the
process, and the employees were willing, and they worked, and they did a lot to reduce the
budget. At that time, I think we reduced it by 26. It's unfortunate we were not aware of the true
picture that we were going through. But I want to you know, Merrett, that the unions, they're
committed to work with us. And I'm sure everybody understands the problem we're in, and this
is team work. And like the Mayor stated before, we exist or don't exist, and we got to bite t4.
bullet. But I want to thank all of you for being here today.
Mayor Carollo: Well, we have all heard a lot of the bad news today, but I'd like to finish it out
with a bright point. Arid this is what I was saying before about... the next two or three years are
the real tough ones for us. But after that, the future is very bright for Miami, the financial future
One area that I would like to instruct the Administration to look into that I feel we can get fifteen
to twenty million dollars ($15,000,000 to $20,000,000) from is the other golf course that we
have left in Miami Springs. The last year and a half or so, the Mayor of Miami Springs came to
us and offered two million dollars ($2,000,000) for that golf course. Then just last month I
believe, they came back and offered three million dollars ($3,000,000). I understand that we
have another offer now from WASA (Water and Sewer Authority) from the Dade County Water
and Sewer for five million dollars ($5,000,000). All that is really small, compared to what that
property really is worth and what we should be able to get for it. It's 183 acres that we have
there, 183 acres of prime land right smack in the City next to the airport and Miami Springs. All
the homes around the golf course have to be a quarter of an acre or smaller in size. I suggest,
Mr. Manager, that we go to some of the attorneys that we all know that can help us pro bono,
that do work in rezoning, in planning, in real estate, and that the City of Miami becomes •.he
applicant to the City of Miami Springs so that we r-a go before them and try to plot tkat
property, that golf course into either one-third lots or half acre lots. Now, if everything around it
is zoned one -quarter acre or less, they might, for their own reasons that are prejudice, say, "No,
we can't do it." But then we will be able to immediately go to court and have a court reverse
them, like has happened to many governmental bodies in Florida in the past. Once that's
rezoned for either one-third acres, or one-half acres, depending what the best avenue is, I believe
that we can find many developers that will be willing to buy that for anywhere from fifteen to
twenty million dollars ($15,000,000 to $20,000,000), And that's fifteen or twenty million
dollars ($15,000,000 or $20,000,000) that could amount to maybe one-third of what we need
here now. Obviously, we are not going to get that in this same year. That might take two years
or more before we get. But I think that these are the kinds of things that we also have to let our
residents know, and our employees, that while right now, we're in a very tight situation, there are
many things that we can do out there, and the City has many assets that we can use to bring the
dollars that will stabilize financially our City for years to come. That's just only one. There are
many others that we are looking at. If the Third District Court of Appeals reverses actions that
were taken on our other golf course, there are additional plans that could bring for that golf
course, that would bring millions of dollars more to the City. We have many other properties
that we could do the same with. We own 900 acres of Virginia Key, still have 94 acres of
Watson Island, scores of other properties that the City of Miami owns that we could put to use to
bring millions of revenues, millions of dollars of revenues to the City of Miami. The problem is
that we can't do that overnight. That would take time. That would take a year, two years, three
years before we could formulate a lot of these plans and move them forward. So with that, Mr.
Manager, unless you have anything further, else to say...
(INAUDIBLE COMMENT NOT ENTERED INTO THE PUBLIC RECORD)
Mayor Carollo: Very good, I appreciate that.
65 October 1, 1996
r
ig
(INAUDIBLE COMMENT NOT ENTERED INTO THE PUBLIC RECORD)
Commissioner Plummer: The question is, realistically, the next meeting, is it going to be Friday
or are we looking at Monday?
(INAUDIBLE COMMENT NOT ENTERED INTO THE PUBLIC RECORD)
Mr. Stierheim: When does that meeting begin, Senator'?
Senator Silver: We've scheduled that hearing, because of the fact that we had a large crowd
the last Pension Board meeting, we want to secure as big a place that we possibly could. So --le
asked for this Commission chamber for nine o'clock on that morning, and I would anticipate it
going that whole morning.
Commissioner Plummer: Which day?
Mayor Carollo: What day?
Senator Silver: Friday.
Mayor Carollo: Friday.
Mr. Stierheim: Friday. Is Monday agreeable? Does that mess you up?
Mayor Carollo: Can we make it Monday at ten a.m. the time that we'll meet? And can you
invite Deloitte and Touche to be here, also?
Mr. Stierheim: Yes, sir. I will. Is there anyone aware of any conflict? Mr. Clerk, is the facilit;
available? So be it, Mr. Mayor.
Commissioner Plummer: Monday, ten a.m.
Mayor Carollo: OK. So we will then hold a special Commission meeting on Monday at ten a.m.
for the purpose stated. This meeting is concluded. Thank you all for coming.
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY
COMMISSION, THE MEETING WAS ADJOURNED AT 2:04 P.M.
ATTEST:
Walter J. Foeman
CITY CLERK
Josephine M. Argudin
ASSISTANT CITY CLERK
JOE CAROLLO
MAYOR
�� ``1t111111
J .
(-�o12T,9ofta7ibI
66