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HomeMy WebLinkAboutCC 1996-12-23 MinutesI MIAM: OF MEETING HELD ON - DECE BER--23, 1996 SPECIAL PREPARED By THE OFFICE OF THE CITY CLERK CITY HALL WALTER J. FOEMAN CITY CLERK r INDEX MINUTES OF SPECIAL. MEETING December 23,1996 ITEM SUBJECT LEGISLATION PAGE NO. NO. 1. COMMENTS FROM STATE SENATOR RON DISCUSSION 1-3 SILVER AND RONALD THOMPKINS 12/23/96 REGARDING HISTORICAL ANALYSIS OF GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' (GESCA) RETIREMENT TRUST PERFORMANCE.-- REQUEST CONSIDERATION OF SALARIES OF PENSION BOARD MEMBERS. f 2. AUTHORIZE CITY MANAGER TO ENTER R 96-939 4-6 INTO MEMORANDUM UNDER�SpTANEDITNlGG // 12/23/96 NOF BAI�IrAININQ ,�E1f�LPMRNT !�104APJC®IT'Y AND FRATERNAL ORDER OF POLICE (FOP), LODGE 20, TO: DEFER FOUR PER CENT WAGE INCREASE TO 9 / 98 -- LIMIT WORKER'S COMPENSATION & SUPPLEMENTAL PAY TO 80 PER CENT OF I EMPLOYEE'S REGULAR BASE PAY -- REDUCE CITY'S CONTRIBUTION TO FOP HEALTH TRUST FOR FY 97 & 98 -- DEFER ISSUANCE OF UNIFORMS FOR FY 97 / PARTIAL DEFERRAL FOR FY 98 -- CHANGE VEHICLE REPLACEMENT SCHEDULE FROM FIVE TO SEVEN YEARS -- REDUCE PERSONAL AND EARNED LEAVE HOURS -- REDUCE REIMBURSEMENT PAYMENT FOR ANNUAL PHYSICALS -- CANCEL FY 97 WAGE REOPENER -- SUPPORT CITY IN USING FEDERAL FORFEITURE FUNDS / FINES FOR PROJECTS WITHIN POLICE -- ESTABLISH OVERSIGHT HIRING COMMITTEE -- ADOPT REVENUE ENHANCEMENT / COST SAVING MEASURES -- PROVIDE BIMONTHLY STATUS REPORT. 3. DISCUSS /TEMPORARILY TABLE TO LATER DISCUSSION 6-8 IN MEETING EXECUTION OF PROPOSED 12/23/96 INTERGOVERNMENTAL COOPERATION AGREEMENT WITH FINANCIAL EMERGENCY OVERSIGHT BOARD -- SEE LABEL 12. r 4. AUTHORIZE M&P INVESTMENTS HOLDING R 96-940 8-10 CORPORATION AS SUCCESSOR BY 12/23/96 MERGER TO EDWARD J. GERRITS, INC., TO ASSUME $500,000 CITY LOAN TO EDWARD J. GERRITS, INC. 5. RESCIND RESOLUTION 96-596 -- R 96-941 10-15 AUTHORIZE $1 MILLION LOAN TO NEW 12/23/96 ARENA SQUARE CORPORATION -- FOR REHABILITATION OF RENTAL UNITS IN OVERTOWN. 6. FIRST READING ORDINANCE: PROPOSE TO ORDINANCE 15-17 AMEND CODE, SECTIONS 2-313,2-314,2-316, FIRST 2-318, AND ADD 2-319 -- ADD / AMEND READING DEFINITIONS -- AMEND LOBBYISTS 12/23/96 REGISTRATION REQUIREMENTS -- ESTABLISH FEES AND DISCLOSURE REQUIREMENTS FOR COMPLIANCE -- PROVIDE EXEMPTION FROM FEES -- CITY CLERK TO MAINTAIN LOG OF REGISTRANTS -- AMEND "ANNUAL STATEMENT" -- PROVIDE REQUIREMENTS FOR COMPLIANCE AND PENALTIES FOR VIOLATIONS.-- PROHIBIT CONTINGENCY FEES AND RENAME SAME AS ANNUAL EXPENDITURE REPORT. 7. DISCUSS / DEFER TO NEXT MEETING M 96-942 18-21 SELECTING HAWKINS, DELAFIELD & WOOD 12/23/96 AND HOLTZMAN, KRINSMAN, EQUELS & FURIA AS SPECIAL COUNSEL TO PERFORM FINANCIAL EMERGENCY SERVICES / BOND / TAX / DISCLOSURE COUNSEL SERVICES. 8. APPROVE IN PRINCIPLE HAVING DISTRICT R 96-943 21-25 ELECTIONS FOR CITY COMMISSIONERS IN 12/23/96 MIAMI -- FURTHER APPROVE TO PROCEED WITH THIS EFFORT AS SOON AS POSSIBLE. 9. PRESENTATION 1 COMMENDATION: DISCUSSION 25-26 PATRICIA ROBBINS / CHRISTINE LEE / RYAN 12/23/96 BUCHOLTZ OF FARM SHARES, INC. -- FOR FOOD RECOVERY EFFORTS TO ERADICATE HUNGER. 10. COMMENTS BY COMMISSIONER PLUMMER DISCUSSION 26 ON "THE MIAMI HERALD" REPORTING OF 12/23/96 CITY COMMISSIONERS EXPENSIVE CHAIRS. 11. RECONSIDER 96-942 -- APPROVE HIRING M 96-944 27-32 HAWKINS, DELAFIELD & WOOD AND R 96-945 HOLTZMAN, KRINSMAN, EQUELS & FURIA 12/23/96 AS SPECIAL COUNSEL TO PERFORM FINANCIAL EMERGENCY SERVICES / BOND / TAX / DISCLOSURE COUNSEL SERVICES, WITH $50,000 CAP-- SEE LABEL 7. 12. AUTHORIZE CITY MANAGER TO EXECUTE INTERGOVERNMENTAL COOPERATION AGREEMENT, WITH MODIFICATIONS, WITH GOVERNOR / FINANCIAL EMERGENCY OVERSIGHT BOARD / CITY.-- SEE LABEL 3B. APPROVE INTERGOVERNMENTAL COOPERATION AGREEMENT AMONG GOVERNOR / FINANCIAL EMERGENCY OVERSIGHT BOARD / CITY. 13. DISCUSS / REVIEW ITEMS ON FINANCIAL RECOVERY PLAN FOR FY'96-'97 -- CITY MANAGER TO MODIFY PLAN AS DISCUSSED PRIOR TO SUBMITTING SAME TO FINANCIAL EMERGENCY OVERSIGHT BOARD -- COMMISSION SELECTS KEY PROPERTIES TO IMMEDIATELY ADVERTISE REGARDING THE SOLICITATION OF APPRAISALS: MIAMI SPRINGS GOLF COURSE / MANUEL ARTIME / MUNICIPAL JUSTICE BUILDING / SOUTH POLICE SUBSTATION / BOBBY MADURO STADIUM -- COMMISSIONER PLUMMER DIRECTS ADMINISTRATION TO RESEARCH IF POLICE HELICOPTERS CAN BE SOLD TO GOVERNMENT AGENCIES -- COMMISSIONER PLUMMER FURTHER REQUESTS ADMINISTRATION ENSURE COMMISSIONERS ARE FULLY INFORMED PRIOR TO COMMISSION MEETINGS REGARDING ANY POTENTIAL OFFERS TO BUY CITY PROPERTY. -- COMMISSIONER PLUMMER ADVISES COMMISSION THAT STATE SENATOR RON SILVER WILL ASSIST CITY IN TALLAHASSEE WITH EFFORTS TO PLACE PROPERTIES ON TAX ROLL. -- SCHEDULE SPECIAL COMMISSION MEETING FOR 12/30/96 BEGINNING AT 11 A.M. R 96-946 M 96-947 12/23/96 DISCUSSION 12/23/96 33-43 43-70 MINUTES OF SPECIAL MEETING OF THE CITY COMMISSION OF MIAMI, FLORIDA On the 23rd day of December, 1996, the City Commission of Miami, Florida, met at its regular meeting place in the City Hall, 3500 Pan American Drive, Miami, Florida in regular session. The meeting was called to order at 11:58 a.m. by Mayor Joe Carollo with the following members of the Commission found to be present: Mayor Joe Carollo Vice Mayor Tomas Regalado Commissioner Wifredo Gort Commissioner J. L. Plummer, Jr. Commissioner Humberto Hernandez ALSO PRESENT: Edward Marquez, City Manager A. Quinn Jones, III, City Attorney Walter J. Foeman, City Clerk Maria J. Argudin, Assistant City Clerk An invocation was delivered by Senator Ron Silvers, after which Mayor Carollo led those present in a pledge of allegiance to the flag. NOTE FOR THE RECORD: Vice Mayor Regalado announcedthe meeting was delayed a ew minutes due to the Mayor meeting with State officials. ---------------------------------------------------------------------------------------------------------------- 1. COMMENTS FROM STATE SENATOR RON SILVER AND RONALD THOMPKINS REGARDING HISTORICAL ANALYSIS OF GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' (GESCA) RETIREMENT TRUST PERFORMANCE -- REQUEST CONSIDERATION OF SALARIES OF PENSION BOARD MEMBERS. ---------------------------------------------------------------------------------------------------------------- Mayor Carollo: We apologize for those who have waited, that we had a later start than we expected. But we had to have some final discussions with attorneys on certain matters that we had to finish. Mr. Manager it's my understanding that Senator Silver had a brief presentation that he needed to make. Am I correct in that or? 1 December 23, 1996 z Y Mr. Edward Marquez (City Manager): Yes, sir. Mayor Carollo: Maybe, what we could do is give him the courtesy that always give to elected office holders and he could come up and make it just brief, 'because I know it's short, right Ron? Senator Ron Silvers: Yes, sir. We'll make it very brief. Mr. Mayor as you know, I am the attorney for the City of Miami, General Employees and Sanitation Employees Pension Fund. And, I come before you today, just wanting to briefly explain to you the benefit that this fund is providing to the City and how we have been doing, what I believe is an exemplary job in saving the City some dollars. And also, to bring to your attention the composition of our board and why after the Gates case was settled, we have the board the way it is. We have the board members here today, and our chairperson Rose Gordon, who you all know very well, will not be with us today but our Vice Chairman, Mr. Ron Thompkins, who is one of the outstanding individuals whom we have been able to recruit from the community, is here to introduce the board and just give you a very short, brief presentation. We also have the actuary and the investment advisor for the board, in case you have any technical questions that you desire to ask them. But I thought we'd bring some good news to you, in this time of, when the news that you're getting is not necessarily the best. But, I'd like at this time to bring Mr. Ron Thompkins, the Vice Chairman of our board to your attention. Mr. Ron Thompkins: Thank you, Ron. For the record, my name is Ronald Thompkins. I am a CPA (Certified Public Accountant), in the firm of Watkins and Reise, 500 N.W. 165th Street, here in Miami. You should have in your possession some handouts that we're going to be briefly going over in interest of time. Before I do that, I would like to introduce my fellow trustees who are with me this morning to make this presentation. Starting with Bob Mendido, Trustee; James Reid, John Negro, Wally Lee, and Hector Sorano. Also, with us today is Diane Legrone representing LIUNA (Laborers' International Union of North America), Charlie Cox with AFSCME (American Federal, State, County, and Municipal Employees), Hilda Thompson with Watson and Wyatt our financial consultants, as well as Don Overhouser from Buck Consultants our actuary. And also Sandy Ellenberg, Administrator; as well as Shoaib Khan, our Chief Financial Officer. The first slot that we would like to share with you is a historical analysis of the last six years returns that we've had regarding the pension plan. As you know, the actuarial rate of return for the plan is eight percent. However, for the last six years, you can see for the most part these returns have been in excess of that. This is going back to 1991, the actual fund had a rate of return of 24.2 percent all the way up to 1996 our most recent year in which the return had a 15.6 percent. And over the six year average, we've had a 14.1 percent in return which represents a six point one return in excess of the actuarial rate of return which represents ninety-nine point six million dollars ($99,600,000) that can be directly attributable to the earnings in the plan. Also, the caveat at this point in time, I am quite sure as you already know, the more the fund has in terms of a gains over the actuarial rate of return, it adds a direct effect on the contributions that are required on the City. So in other words, the greater the returns that we are able to accomplish within the plan, it minimizes the cost... the funding that we would need from the City. The next slot is another method of presenting the same information in which we are presenting the expected rate of return versus actual return. The green area represents the actual rate of return for once again, the same six year period. And the green area also represents the eight percent actuarial rate of return. Going to the third slot, you can see in 1990, the year in which we had our last five year experience analysis, beginning with a pension fund which had at that time a one hundred million dollars ($100,000,000) portfolio over the last six years, if the returns had been kept at the expected actuarial rate of return, the plan would have only had one hundred and fifty-eight million dollars ($158,000,000) in the plan. However, because of the growth and the rate of return that we've had over the plan for the past six years, you can see that currently the actual growth was two hundred and twenty million dollars ($220,000,000). Going to the next slot. This was put together by our consultants Watson 2 December 23, 1996 Wyatt and based on the portfolio of clients that are managed by Watson Wyatt, which is the fifth largest pension consultants in the world, you can see for the one year return, our pension plan was the fourth, ranked number four in terms of their portfolio of clientele. If you go to the very next page, you will see over a three year period of time, we represented their fourteenth client that had the largest rate of return. Mr. Silvers: Fourteen out of 80. Out of 80. Mr. Thompkins: Fourteen out of 80, and also on the previous slide which represented a one year rate of return, that represented... we were number four out of 80 of their clients. And the very last slot just simply represents an actuary assumption versus an excess. And once again, these excess returns are used to minimize the contributions that are required annually from the City. Also, in closing, one of the things I would like to represent as you... The City's plan is a single employer's pension plan, and as a result once you... In fact they're out the Gates agreement. The percentage of your contributions to the plan, the last two years when you factored out the Gates agreement for the year ended September 30, 1994. The contribution to the City was four point one percent. And as of September 30, 1995, it was five point seven percent. So at this point in time that concludes my remarks. And in closing, this is the first time I've had an opportunity to address the Commission, since the appointment of Ed Marquez. I've worked with Ed over the years at the County, and I think... I want to applaud the Commission for their excellent choice in Ed Marquez. Ron. Mr. Silvers: Again, I just want to bring up. I know you took some action, I believe it was at your last Commission meeting regarding the Civil Service Board and the Pension Board regarding reducing the salaries of the members of those boards to 1 believe it was one dollar ($1) a year or whatever the case might be. I just wanted to provide some history to you. When we entered in the Gates agreement, which completely revised the way we handled the pension funds, it was determined at that time that we needed to get some expert advise and get more community involvement in the pension fund. And that's why we want to, set some certain standards for members of the board, and certain standards for which we would ask people in the community to serve. And that's why we were able to get people like Rose Gordon and Ron Thompkins and others on the board to serve. So we agreed to pay them the rate of three hundred dollars ($300) a month to serve. And I think based upon what you see here, as far as the production of that is concerned, I think we've been... especially in comparison to how we used to do things, we have been richly rewarded for that. So, at whatever appropriate time I would hope that you would revisit that situation and take that into account and do whatever you desire to do at that time. But, certainly, I think it's very beneficial to have these people on the board and I think if you're going to stick with people, you have to at least pay them a certain sum of money, if you're going to get them from the outside. So I thank you very much. We have our actuary here. We have our investment advisor. If anyone has any questions that they desire to, ask them. Thank you Mr. Mayor, members of the Commission. Mayor Carollo: Thank you Senator Silvers. Mr. Silvers: OK. Mayor Carollo: Any questions from members of the Commission? Commissioner Plummer: Just congratulations. Mr. Silvers: Thank you. Mayor Carollo: Thank you. 3 December 23, 1996 G ---------------------------------------------------------------------------------------------------------------- 2. AUTHORIZE CITY MANAGER TO ENTER INTO MEMORANDUM OF UNDERSTANDING / MODIFY EXISTING COLLECTIVE BARGAINING AGREEMENT BETWEEN CITY AND FRATERNAL ORDER OF POLICE (FOP), LODGE 20, TO: DEFER FOUR PER CENT WAGE INCREASE TO 9 / 98 -- LIMIT WORKER'S COMPENSATION & SUPPLEMENTAL PAY TO 80 PER CENT OF EMPLOYEE'S REGULAR BASE PAY -- REDUCE CITY'S CONTRIBUTION TO FOP HEALTH TRUST FOR FY 97 & 98 -- DEFER ISSUANCE OF UNIFORMS FOR FY 97 / PARTIAL DEFERRAL FOR FY 98 -- CHANGE VEHICLE REPLACEMENT SCHEDULE FROM FIVE TO SEVEN YEARS -- REDUCE PERSONAL AND EARNED LEAVE HOURS -- REDUCE REIMBURSEMENT PAYMENT FOR ANNUAL PHYSICALS -- CANCEL FY 97 WAGE REOPENER -- SUPPORT CITY IN USING FEDERAL FORFEITURE FUNDS / FINES FOR PROJECTS WITHIN POLICE -- ESTABLISH OVERSIGHT HIRING COMMITTEE -- ADOPT REVENUE ENHANCEMENT / COST SAVING MEASURES -- PROVIDE BIMONTHLY STATUS REPORT. Mayor Carollo: OK, the next item on the agenda that we are going to be taking, and after we do this item, we're briefly going to do some presentations and it will be item number one on the agenda. Commissioner Plummer: Move it. Mayor Carollo: Well, let's... It is a motion for the sake of discussion. Is there a second? Vice Mayor Regalado: Second, yeah. Mayor Carollo: Vice Mayor Regalado seconds it. OK, now the discussion. Mr. Manager, would you like to briefly explain? Mr. Ed Marquez (City Manager): This is a ratification of the memorandum of understanding that we've reached with the Fraternal Order of Police (FOP) which they voted in this past Friday. These were items that helped us meet the dollar figures that are contained in the strategic financial recovery plan. As in terms of union concessions. Mayor Carollo: Anything you would like to add Sue? Ms. Sue Weller (Labor Relations Officer): No, sir. I think everything that was given in the way of concessions are listed in the memorandum of understanding and the cover memo, unless there are some questions. Mayor Carollo: Very good. All right, any further questions or discussions for the members of the Commission? Commissioner Plummer: The only comment is that I would like to personally thank the Police Department for their cooperation in doing what they wanted to do, and what they needed to do. Mayor Carollo: Any further comments or statements from the members of the Commission? 4 December 23, 1996 r Commissioner Gort: Just follow in thanking you. This shows once again, that we all want to work together to save the City of Miami. And I think that's the great proof that we have in that vote. That was a vote of confidence. Mayor Carollo: Well, I think if it says anything is, we're in a full partnership now, not only with the State of Florida but with all of our employees and the residents of Miami to get through this and get through it, we will. Hearing no further discussion, all in favor signify by saying "aye." The Commission (Collectively): Aye. The following resolution was introduced by Commissioner Plummer, who moved its adoption: RESOLUTION NO. 96-939 A RESOLUTION WITH ATTACHMENT, AUTHORIZING THE CITY MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING, IN SUBSTANTIALLY THE ATTACHED FORM, MODIFYING THE EXISTING COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF MIAMI AND THE FRATERNAL ORDER OF POLICE (FOP), LODGE 20, IN EFFECT FOR THE PERIOD OF OCTOBER 1, 1995 THROUGH SEPTEMBER 30, 1998, PURSUANT TO RESOLUTION NO. 95-225, ADOPTED MARCH 27, 1995, BY THE CITY COMMISSION; SAID MODIFICATION TO PROVIDE FOR: A DEFERRAL OF THE FOUR PERCENT (4%) SALARY INCREASE, PREVIOUSLY DUE IN JANUARY 1997, TO SEPTEMBER 1998; A REDUCTION OF WORKERS' COMPENSATION SUPPLEMENTAL PAY; A REDUCTION IN THE CITY CONTRIBUTION TO THE FOP HEALTH TRUST FOR FISCAL YEARS 1996-97 AND 1997-98; A DEFERRAL ON UNIFORM ISSUES FOR FISCAL YEAR 1996-97 AND A PARTIAL UNIFORM ISSUE IN FISCAL YEAR 1997-98; THE ESTABLISHMENT OF A SEVEN YEAR REPLACEMENT SCHEDULE FOR VEHICLES UNDER THE TAKE HOME VEHICLES PROGRAM; THE ESTABLISHMENT OF A ROUTINE PREVENTIVE MAINTENANCE PROGRAM FOR THE TAKE-HOME VEHICLES AND THE REQUIREMENT THAT EMPLOYEES BEAR THE COST OF ROUTINE PREVENTIVE MAINTENANCE ON ASSIGNED VEHICLES; THE ELIMINATION OF THE WASHINGTON'S BIRTHDAY HOLIDAY FOR CALENDAR YEARS 1997 AND 1998; A REDUCTION OF EARNED PERSONAL LEAVE FROM 14 HOURS TO 10 HOURS IN CALENDAR YEAR 1997 AND THE ELIMINATION OF EARNED PERSONAL LEAVE UNDER ARTICLE 22 FOR CALENDAR YEAR 1998; THE REIMBURSEMENT FOR ANNUAL PHYSICALS UP TO $175,000.000 FOR FISCAL YEARS 1996-97 AND 1997-98 TO THE CITY FROM THE FOP HEALTH TRUST; THE CANCELLATION OF THE 1997 WAGE REOPENER; AN AGREEMENT TO SUPPORT THE CITY IN UTILIZING FEDERAL FORFEITURE FUNDS/FINES TO FUND SPECIAL PROJECTS WITHIN THE MIAMI POLICE DEPARTMENT; THE ESTABLISHMENT OF AN OVERSIGHT HIRING COMMITTEE; THE ADOPTION OF REVENUE ENHANCEMENT AND COST CONTAINMENT MEASURES AND THE PROVISION OF A BI-MONTHLY STATUS REPORT. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) r Upon being seconded by Vice Mayor Regalado, the resolution was passed and adopted by the following vote: AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: None. ---------------------------------------------------------------------------------------------------------------- 3. DISCUSS /TEMPORARILY TABLE TO LATER IN MEETING EXECUTION OF PROPOSED INTERGOVERNMENTAL COOPERATION AGREEMENT WITH FINANCIAL EMERGENCY OVERSIGHT BOARD -- SEE LABEL 12. ---------------------------------------------------------------------------------------------------------------- Commissioner Plummer: I move item two. Commissioner Hernandez: Second. Mayor Carollo: We need to go over item two. There's a motion, there's a second for the sake of discussion. Mr. Manager, let's get to item two, and I suggest that each member of the Commission clearly looks over the contract that we're signing because this is the agreement that we're going to be bound by for some time. And I don't want anyone to say in the future that we weren't appraised of what we were signing. So I think this is one that we need to go over a little more carefully. There's a few minor changes that we have been working on. Hopefully, the language is finalized in the changes and if not, what we could do is possibly just hold off on this one and do some of the other ones that are quicker and then come back to it, if they're still working on it. Commissioner Plummer: If you want, it's fine with me. Mayor Carollo: Can you find out if they're ready to come back with the minor changes, or... Commissioner Plummer: Are we talking about minor changes in this document which was handed to me at eleven o'clock, and said it's final? Mayor Carollo: That's correct, Commissioner. Very minor changes in wording only. Commissioner Gort: We've got copies of that. Mayor Carollo: Excuse me? Commissioner Gort: We did receive copies of the minor changes. Mayor Carollo: There are a few additional ones... Commissioner Gort: Oh, there are additional ones. 6 December 23, 1996 Mayor Carollo: ... that are coming, right. The draft that I believe you all have before you, I believe is a draft that's dated December 20, 1996, five p.m. Is that correct? Commissioner Plummer: It doesn't state. Mayor Carollo: Well, in mine it does. That's why... Mr. A Quinn Jones (City Attorney): On the first page is the actual agreement. Commissioner Plummer: Well, you tell me. Mayor Carollo: I'm talking on the first page. Commissioner Plummer: This item? Mr. Jones: Yes. Commissioner Plummer: Where's the date and time on this one? I don't see it. Vice Mayor Regalado: Five twenty-five. Commissioner Plummer: What? Vice Mayor Regalado: It's... Commissioner Plummer: Then I want to know why everybody else got a document different than mine? Vice Mayor Regalado: No, no. He's talking about this. Mayor Carollo: No, you do. Yeah, if you keep going in the back of that page. You know, we didn't leave you out Commissioner. I assure you. Vice Mayor Regalado: Page nine. Mayor Carollo: Well actually, it's... Commissioner Plummer: No, that's the supplement... Vice Mayor Regalado: Yes. Commissioner Plummer: ... OK, of the correction. Now, I'm talking about the final document which I have here, and marked final. No, this was given to me this morning and informed me this morning that this was the final. And that's the one thing I am going to make sure of. Mayor Carollo: Well, I didn't get that one this morning, so maybe I got left out. Commissioner Plummer: Well, that could. Let's find out who's playing cheese and crackers. Mayor Carollo: Now, I got to smile at him. Mr. Edward Marquez (City Manager): Mr. Mayor, Commissioners. Within your package you have one that stated that five p.m. time. There was a couple of minor changes towards, on two t pages that was just handed out this morning, from the State. And... 7 December 23, 1996 Mayor Carollo: I don't have that. Why don't you go on to the next item please? Mr. Marquez: Sure. Mayor Carollo: Thank you. Commissioner Plummer: I withdraw my motion on item two. ---------------------------------------------------------------------------------------------------------------- 4. AUTHORIZE M&P INVESTMENTS HOLDING CORPORATION AS SUCCESSOR BY MERGER TO EDWARD J. GERRITS, INC., TO ASSUME $500,000 CITY LOAN TO EDWARD J. GERRITS, INC. ---------------------------------------------------------------------------------------------------------------- Commissioner Plummer: I now make a motion to move item three. Vice Mayor Regalado: OK, there's a motion. Commissioner Gort: Assumption of loan, yes. Vice Mayor Regalado: Second... Commissioner Hernandez: I second. Vice Mayor Regalado:... by Commissioner Hernandez. I believe.. OK. This is OK. It's a resolution, Mr. Manager? Mr. Marquez: Yes, sir. This is a resolution that's allowing the assumption of a loan that's formerly with Edward J. Gerrits, Inc. to be assumed by M & P Investments Holding Company. Years ago after the riots, the City through it's Community Development Program lent five hundred thousand dollars ($500,000) to Edward J. Gerrits, Inc. That firm is in the process of dissolving and the holding company is going to be responsible for the debt and its peer assignment. Commissioner Plummer: It's just transfer. Commissioner Hernandez: Mr. Manager is this? It's come tome this morning that this is not the same resolution that's going to be before us on. Aren't they drafting a new resolution as we speak? Mr. Marquez: No. Mr. Elbert Waters (Director, NET/Community Development): No, not on this item. Commissioner Plummer: On two. Vice Mayor Regalado: No, no. This is... The other resolution is on the project in Overtown. The TUCOM Project. Mr. Waters: Yes, it's different. N December 23, 1996 Commissioner Plummer: Number three, Garrits. Commissioner Hernandez: With Knight Manor. Vice Mayor Regalado: Yes, Knight Manor. Commissioner Plummer: No, Knight Manor is a different, OK. Mr. Waters: Different. Commissioner Hernandez: OK. Vice Mayor Regalado: OK. Mr. Waters: Thank you. Commissioner Plummer: Call the roll. Vice Mayor Regalado: So... Commissioner Gort: It's a resolution. Vice Mayor Regalado: It's a resolution? OK. Commissioner Plummer: Call the roll. Vice Mayor Regalado: So let's call the roll. The following resolution was introduced by Commissioner Plummer, who moved its adoption: RESOLUTION NO. 96-940 A RESOLUTION AUTHORIZING M&P INVESTMENTS HOLDING CORPORATION, AS SUCCESSOR BY MERGER TO EDWARD J. GERRITS, INC., TO ASSUME THAT CERTAIN LOAN FROM THE CITY OF MIAMI TO EDWARD J. GERRITS, INC., IN THE ORIGINAL PRINCIPAL AMOUNT OF $550,000; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE SUCH DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY TO ACCOMPLISH THIS PURPOSE. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Z December 23, 1996 r Upon being seconded by Commissioner Hernandez, the resolution was passed and adopted by the following vote: AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifred Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado NAYS: None. ABSENT: Mayor Joe Carollo ---------------------------------------------------------------------------------------------------------------- 5. RESCIND RESOLUTION 96-596 -- AUTHORIZE $1 MILLION LOAN TO NEW ARENA SQUARE CORPORATION -- FOR REHABILITATION OF RENTAL UNITS IN OVERTOWN . Commissioner Plummer: Move item four. Mr. Elbert Waters (Director NET/Community Development): Commissioner. Commissioner Gort: My understanding is, it's a different resolution than this one. Commissioner Plummer: Move to defer item four... Commissioner Gort: No, no. Mr. Waters: Commissioners... Commissioner Plummer: ... 'till the next meeting. Mr. Waters: If I may? If I may Commissioner? Commissioner Gort: They've got a resolution. Vice Mayor Regalado: We're waiting for a new resolution, right? Mr. Waters: Yes. Commissioner Plummer: What's different? You know, this is, this is getting crazy. This is getting crazy. Where I have an agenda item, I look at agenda items and then I'm being told this isn't what we're doing. Now... Mr. Waters: If we... Vice Mayor Regalado: The reason, Commissioner. I am sorry. I guess that we were told that something came up this morning in terms of a legal... Mr. Waters Yes. Vice Mayor Regalado: ... situation. 10 December 23, 1996 two., to , J. r Commissioner Plummer: I understand that. But is it different than this? Ms. Linda Kearson (Assistant City Attorney): Yes, sir it is. Good morning, I am Linda Kearson. We were able to resolve an outstanding matter with Knight Manor. As you are aware, we were served with a lawsuit this morning, requesting that the City of Miami not be allowed to take certain actions against that project. In meeting with the developer for the Arena Towers project, we were able to fashion a new financial scheme for him. Whereby the City would provide him with a CDBG (Community Development Block Grant) loan for the period of January to July. At which time he will repay that loan to the City of Miami using private funds. And then we would allocate Home Investment Partnership Program funds for his project. By doing that, we will not have to reallocate any funds from the Knight Manor project. So we have a substitutive resolution which would accomplish that. Commissioner Plummer: I have then two questions. What is the interest being paid on the loan? And what collateral is being garnered to ensure the loan's repayment? Mr. Waters: The interest Commissioner Plummer would be... we would wait on the Commission's directive as to what interest we should charge. And number two, in terms of a guarantee for the repayment of that loan, that would take place through the equity partners as a part of the Arena square, that would take... Commissioner Plummer: As personal guarantees? Mr. Waters: If... Commissioner, if that's a part of the deal, we would make that a part of the agreement. Commissioner Plummer: What I'm asking. I'm not being... one or the other. If that's what it is, I want to know what it is. Mr. Waters: Yes, yes, sir. Commissioner Plummer: Personal guarantees? Mr. Waters: That would be a part of the deal. Commissioner Plummer: Thank you, sir. Vice Mayor Regalado: OK, do we have the resolution? Mr. Waters: Yes, sir. If I may read it into the record? Vice Mayor Regalado: Yes, you may. But we don't have it. Commissioner Plummer: We don't have it. Ms. Kearson: No, you don't have it. We just drafted the title, a few minutes ago as a settlement offer. So we have a title here, that we're going to propose to you. We will get to you a resolution today, but we just have a title to read into the record now. Vice Mayor Regalado: Is the Commission willing to act on this now, or wait until? Commissioner Plummer: I have no problem as proferred by the administration. My problem is, that I didn't have it. And she spoke to me before the meeting, but I thought it was incorporated here. So what do you want to do? You want to read the resolution and pass it that way? 11 December 23, 1996 Ms. Kearson: Yes. Mr. Waters: If I may? Commissioner Plummer: That's fine. Do it. Vice Mayor Regalado: OK. Commissioner Plummer: All right, question. What is the total amount of all of the loans going to the one entity? Mr. Solomon Yuken: One million two fifty ($1,250,000). Mr. Waters: One million two hundred and fifty thousand dollars ($1,250,000). Commissioner Plummer: OK, we had allocated previously, seven fifty ($750,000)? Mr. Waters: We're rescinding... Yes. Commissioner Plummer: OK. Then we're giving a grant, or we're giving a loan of the five hundred thousand ($500,000)? That comes to the million two fifty ($1,250,000). Is that correct? Mr. Waters: Well, the net. Ms. Kearson: What we're doing Commissioner. We're rescinding the original resolution. We will now be lending him up to one million dollars ($1,000,000). Forget about the seven fifty ($750,000). Lend him one million dollars ($1,000,000). That money is going to be repaid out of private dollars in July. We will then provide him with Home funds in amount of one point two million dollars ($1,200,000). And home funds are used as a grant. Mr. Waters: Grant. Yes. Commissioner Plummer: As a grant? Mr. Kearson: That's correct. Commissioner Gort: The total cost of the project is how much? Commissioner Plummer: It's got to be a million ($1,000,000)... Mr. Yuken: The total what? Commissioner Gort: The total cost of the project? Mr. Yuken: It's nine million dollars, not considering the cost of the property. Commissioner Plummer: OK. My only one question. What happens, God forbid, they go belly up? Are the funds there to finish the project? Does the City have the right to step in? Ms. Kearson: When we draft our loan documents with Mr. Yuken, we certainly would add that provision. Commissioner Plummer: I'm talking about the loan. The loan is clear. It has to be paid back by July. 12 December 23, 1996 Ms. Kearson: Uh-huh. Commissioner Plummer: Now, in July we give him a grant of one million two five zero ($1,250,000). Correct? Ms. Kearson: That's correct. Commissioner Plummer: OK. Now, what happens once they start construction for whatever reason, they go belly up with our million two five zero ($1,250,000)? Is there monies in there to finish the project? Do we get our money back? Those things do happen. Mr. Waters: Yes, sir. We... Commissioner Plummer: Now, how do we as a City Commission say, that if something happens, God forbid that it should; that the project goes forward or the project doesn't go forward, the City gets its money back? Mr. Waters: What the City has done in the past Commissioner, is to allow the developer to draw down based on the percentage of the projects completed. So that's one of our assurances that we will be... Commissioner Plummer: Wouldn't it be better that we be a mortgage holder, until the project is completed? Mr. Waters: Yes. For the one point two million ($1,200,000). Yes. Commissioner Plummer: Fine. As long as we... You know I... You know, this man is a good developer and the way things go he's going to do a very fine project. But I'm looking to the down side that could occur, and how is the City protected. Commissioner Gort: My question is. My understanding is there several sources of funding in here. You have the... Commissioner Plummer: Private. Commissioner Gort: ... from the private sector and you have the rest of the eight, seven million dollars (($8,000,000, $7,000,0000) dollars. And also you have tax... Ms. Kearson: Credits. Commissioner Gort:... tax credits which it's my understanding, I have some experience with tax credits. Those people assure themselves that the project gets done. Mr. Waters: Yes, sir. Ms. Kearson: That's correct. Commissioner Plummer: Call the roll. Vice Mayor Regalado: Yes, Mr. City Clerk. Mr. Walter J. Foeman (City Clerk): I need a mover and a seconder. 13 December 23, 1996 Commissioner Plummer: Well, I guess I'll move it in the modified amendment, now that I understand it. Vice Mayor Regalado: Modified resolution, you're saying? The one that we're going to get now. Commissioner Plummer: It's modified off of the agenda, yes. Vice Mayor Regalado: OK. So you have heard the resolution, let's call the roll. Mr. Foeman: I need a seconder, Commissioner. Commissioner Hernandez: Second. Vice Mayor Regalado: Second by Commissioner Hernandez. Ms. Kearson: Thank you. Mr. Waters: Thank you. Mr. Yuken: Thank you. The following resolution was introduced by Commissioner Plummer, who moved its adoption: RESOLUTION NO. 96-941 A RESOLUTION RESCINDING IN ITS ENTIRETY, RESOLUTION NO. 96-596, ADOPTED JULY 25, 1996, WHICH ALLOCATED $750,000 IN 23RD YEAR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS TO NW ARENA SQUARE CORPORATION (CORPORATION) FOR THE REHABILITATION OF 206 RENTAL UNITS IN THE OVERTOWN AREA; HEREBY AUTHORIZING THE CITY MANAGER TO ALLOCATE AND DISBURSE AN INTERIM LOAN, IN THE AMOUNT OF $1,000,000 IN 22ND YEAR CDBG PROGRAM FUNDS, FROM THE CITY'S CDBG ASSISTED MULTI -FAMILY LOAN PROGRAM, TO NEW ARENA SQUARE CORPORATION FOR THE PHASE I REHABILITATION OF 206 RENTAL UNITS IN THE OVERTOWN AREA; FURTHER AUTHORIZING THE CITY MANAGER TO ALLOCATE AND DISBURSE $1,250,00 IN FY '97-98 HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS TO SAID CORPORATION FOR THE PHASE II REHABILITATION OF APPROXIMATELY 350 RENTAL UNITS IN SAID AREA; AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY TO EXECUTE THE NECESSARY DOCUMENTS TO IMPLEMENT SAID PROJECT. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 14 December 23, 1996 " a' Upon being seconded by Commissioner Hernandez, the resolution was passed and adopted by the following vote: AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado NAYS: ABSENT: None. Mayor Joe Carollo ---------------------------------------------------------------------------------------------------------------- 6. FIRST READING ORDINANCE: PROPOSE TO AMEND CODE, SECTIONS 2-313,2-314,2-316, 2-318, AND ADD 2-319 -- ADD / AMEND DEFINITIONS -- AMEND LOBBYISTS REGISTRATION REQUIREMENTS -- ESTABLISH FEES AND DISCLOSURE REQUIREMENTS FOR COMPLIANCE -- PROVIDE EXEMPTION FROM FEES -- CITY CLERK TO MAINTAIN LOG OF REGISTRANTS -- AMEND "ANNUAL STATEMENT" -- PROVIDE REQUIREMENTS FOR COMPLIANCE AND PENALTIES FOR VIOLATIONS.-- PROHIBIT CONTINGENCY FEES AND RENAME SAME AS ANNUAL EXPENDITURE REPORT. Commissioner Plummer: I'll move five for discussion. Commissioner Hernandez: Second. Commissioner Plummer: Under discussion. Vice Mayor Regalado: Second by Commissioner Hernandez, moved by... Commissioner Plummer: What are the fees, what are the fees proposed? Mr. A. Quinn Jones (City Attorney): Fees proposed, one hundred dollars ($100) registration fee, and twenty-five dollars ($25) per issue per issue per principal. Commissioner Plummer: I think it's ridiculous. Commissioner Gort: That's the Market. Commissioner Plummer: I don't care. Mr. Jones: Commissioner, I explained to you... Commissioner Plummer: Lobbyists coming in here making ten thousand, fifteen, twenty thousand dollars ($10,000, $15,000, $20,000) on representing a client, we're going to take one hundred dollars ($100) Mr. Jones: Commissioner, I explained to you in a cover memo that I sent to you on Friday afternoon. The regulation that you enact has to be commensurate with the activities regulated. 15 December 23, 1996 You've got to be able to justify if you charge them five hundred dollars ($500) that they're getting... that you're expending five hundred dollars ($500) regulating the activity. In our view, what we came up in terms of what we thought is reasonable, comparing some other jurisdictions require in the State. It is up to you to charge whatever you want to charge. I'm just telling you that it will be subject to challenge if you go higher than that. Commissioner Plummer: Well, now that you put that on the record. You've won the lawsuit... against me. Mr. Jones: Well, Commissioner. I mean the case law states what it states. I'm laying the facts down on the table. I don't want you to come back and tell me at a later point in time that I didn't tell you. Commissioner Plummer: Now, I have one other question. You don't define lawyers who act as lobbyists and I thought that I asked that that be delineated in here. If a lawyer comes here as a lawyer, and he's representing a client, is he not a lobbyist? Mr. Jones: Commissioner, that is defined in here. Commissioner Plummer: OK, if it is... Mr. Jones: Let's see. Commissioner Plummer: ... and it's understood, I have no further questions. Mr. Walter J. Foeman (City Clerk): Commissioner, I think there was this one exception and that was attorneys who appeared before the Civil Service, Nuisance Abatement and Code Enforcement Boards. I think that's addressed in the codes. Vice Mayor Regalado: Commissioner Gort. Commissioner Gort: My question is, if an individual comes representing his own company. He wants to do business with the City of Miami and he has to make a presentation on behalf of his company or the person he works for, who gets paid a salary from that company, he's got to be a lobbyist? Mr. Jones: Yes. Commissioner Gort: They would have to pay one hundred dollars ($100) also? Mr. Jones: That's correct. Commissioner Gort: OK. Vice Mayor Regalado: Any other questions? Commissioner Gort: Yes. The other question was, the nonprofit corporations.... Mr. Jones: Uh-huh. Commissioner Gort: ... that comes and they have pro bonos, would not have to pay a fee? Mr. Jones: If they're... Correct me it I'm wrong, Walter. You want to address this? 16 December 23, 1996 Mr. Foeman: Yes. The nonprofit corporations, they have to register but they don't have to pay the fee. They're exempted from paying the fee. Vice Mayor Regalado: Any other questions? OK. There is a motion, there is a second. So, let's call the roll. Mr. Jones: Let me read it. It's an ordinance first reading. Commissioner Plummer: If you can't get cake, take bread. I think this is ridiculous, but it's a source of revenue and I'll vote for it. But I think we should be getting a lot more than what we're getting. An Ordinance entitled - AN ORDINANCE RELATED TO LOBBYISTS; AMENDING THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, BY: ADDING AND AMENDING DEFINITIONS; AMENDING LOBBYISTS' REGISTRATION REQUIREMENTS; ESTABLISHING FEES AND DISCLOSURE REQUIREMENTS; PROVIDING EXEMPTIONS FROM FEES; REQUIRING THE CITY CLERK TO MAINTAIN A LOG OF REGISTERED LOBBYISTS; AMENDING THE "ANNUAL STATEMENT" AND RENAMING SAME AS "ANNUAL EXPENDITURES REPORT"; SETTING FORTH PROCEDURES AND REQUIREMENTS FOR COMPLIANCE; PROVIDING FRO PENALTIES FOR VIOLATIONS; AND PROHIBITING CONTINGENT FEES; MORE PARTICULARLY, BY AMENDING SECTIONS 2-313, 2-314, 2-316 AND 2- 318 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AND ADDING NEW SECTION 2-319 TO SAID CODE; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. was introduced by Commissioner Plummer, seconded by Commissioner Hernandez, and was passed on first reading, by title only, by the following vote: AYES: Commissioner J. L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado NAYS: None. ABSENT: Mayor Joe Carollo The City Attorney read the ordinance into the public record and announced that copies were available to the members of the City Commission and to the public. 17 December 23, 1996 r 7. DISCUSS / DEFER TO NEXT MEETING SELECTING HAWKINS, DELAFIELD & WOOD AND HOLTZMAN, KRINSMAN, EQUELS & FURIA AS SPECIAL COUNSEL TO PERFORM FINANCIAL EMERGENCY SERVICES / BOND / TAX / DISCLOSURE COUNSEL SERVICES. Vice Mayor Regalado: Number six, is a discussion concerning the special counsel to perform financial emergency services, and bond tax and disclosure counsel services. The Manager had something to say about that. Mr. Edward Marquez: Mr. Vice Mayor, than you. What you have in your package is a proposed agreement with the firm of Hawkins Delafield and Wood out of New York to serve as special counsel to the City. The... if you read the Wallstreet Journal or the Bond Buyer, you would know that the City, there is talk about lawsuits being placed on the City because of lack of disclosure and the bond markets about our fiscal affairs over the past couple of years. The City does not have a standing bond counsel. It rotates jobs on individual assignments. The firm of Hawkins Delafield and Wood made a proposal to me about serving as primarily disclosure counsel and also as special counsel to us, during our workout period. The firm is rated the number two bond counsel in the country, over the past six years. The number one underwriters counsel in the country over the past six years. They have also served as special counsel to a number of distressed entities as they went into a recovery period. They were the special counsels to the Yonkers in New York City and to Cleveland. This is something that I believe is absolutely necessary because we are going to be faced with a lot of questions going forward about the level of disclosures that were made to the fiscal markets. The engagement letter is set so that to the degree that the firm is working on items that are solely recovery oriented. Like working on... they gave advise for instance on the agreement that's before you today. Their rates will be about one hundred and fifty dollars ($150) per hour, per attorney services and eighty-five dollars ($85) per hour per paralegals. Commissioner Plummer: It's not what's in the agreement. Mr. Marquez: If it's for disclosure counsel, their fees will be two hundred and twenty-five dollars ($225) for attorney services, and eighty-five dollars ($85) for paralegal work. This is totally, more or less in line with other of type bond counsel fees that we have. The control here will be that on each and every meeting engagement that they have they will do basically work order to me, estimating their fees before I give an OK. And I will be talking to the City Attorney as far as the need for individual services in this regard. The last thing I want to say is that... for instance, Yonkers of New York, went through a recovery period and had substantial disclosure in their first bond issue when they were coming out. And that's generally the trigger to announce that you've recovered, if you can access the public markets. So, in that this firm has high credentials. They're in the top one or two rankings of this type of services in that they participate in distressed organizations elsewhere in the country. And finally, the fact that they have not served as bond counsel or underwriting counsel on any transactions here in Dade County. Let alone, the City of Miami. All those things speak well for them and I recommend their approval. Commissioner Plummer: I have a question. Mr. Marquez: Yes, sir 18 December 23, 1996 Commissioner Plummer: Are you telling me for the record, that there is no local law firm capable of performing these services? Mr. Marquez: No, sir. I am not saying that. But there is a number... Commissioner Plummer: Then why weren't they contacted? Mr. Marquez: Well, this was a proposal that was given to me by the firm and I considered it and I thought I'd bring this up as a special item here. Commissioner Plummer: Well, that's fine. You know, I am sorry for being a homeboy, all right. I like to do business with those people who pay taxes in the City of Miami. Now, Mr. City Attorney. Mr. A. Quinn Jones, III, Esq. (City Attorney): Yes, sir. Commissioner Plummer: You can answer the question for me. There might not be a firm here locally that can qualify to do the work that is needed. And yet, there might be. And I think, if in fact, there is a local firm there should be consideration given to a local firm. Now, are there firms here that are capable of performing these services? Mr. Jones: I'll check Commissioner. To answer your question, I don't know. I wasn't involved. As the Manager indicated, this was a proposal by a firm to the Manager. Commissioner Plummer: Yeah, but that's a single. Was there more than one proposal made to you, sir? Mr. Marquez: No, sir. Commissioner Plummer: OK. You see, that within itself I have a problem with. And I would just ask the City Commission that I think we ought to find out if there is a local firm that is capable of providing these services, and we ought entertain and talk with our local people first. This is a New York company. Commissioner Gort: J.L. Commissioner Plummer: Yeah. Vice Mayor Regalado: Mr. Manager, I'm... Commissioner Plummer: Eh? Vice Mayor Regalado: Go ahead, Commissioner Plummer. Commissioner Gort: My understanding, correct me if I am wrong. There is quite a few local firms that are qualified within Dade County. But at the same time, most of these firms have done work within the City of Miami. And, I think the action of the Manager, and I know that's what he had in mind is, is to try to get a firm that does not have a conflict of interest. Because as you can see, a lot of our bond issues have been looked into it, and most of the firms that are here locally had something to do with the bond issue itself. Commissioner Plummer: Willie, my problem is that could be a problem. But he only spoke with one firm. What I'm saying is, speak with other firms that might not have any caveat, that they have a problem and see if there is not a local firm who can provide the services without 19 December 23, 1996 restriction, without their hands tied and if there is, I'd like to know about it. That's all I'm saying. Do business with people who do business with the City. If nothing more than paying taxes. Vice Mayor Regalado: Commissioner Hernandez. Commissioner Plummer: Now, you know, I'm one vote here at this Commission. My vote would be. We're going to meet here again very quickly to go and see if there are any local firms. If there are, fine. If there's not, so be it. Then we go with this firm. Vice Mayor Regalado: Commissioner Hernandez. Commissioner Hernandez: Mr. Manager, Holtzman and Krinsman is a local firm, are they not? Mr. Marquez: Yes, sir. Commissioner Hernandez: What services are they providing under this agreement? Mr. Marquez: They're serving as joint venture to the out of state firm. Commissioner Hernandez: So there is some local participation? Commissioner Plummer: Well, they're getting a bone, OK. They're getting a bone. Throw 'ern a bone. Hey, look... Commissioner Hernandez: Are they going 50150 on this agreement, or what's the situation? Mr. Marquez: I have not seen the participation agreement between the two firms. The... Commissioner Plummer: Well, I'll move that the item be deferred and all these questions be answered, and put it on the next agenda. Vice Mayor Regalado: OK, is there a second for...? Commissioner Gort: I think it's the logical thing to do. Second. Vice Mayor Regalado: OK, there is a motion by Commissioner Plummer, second by Commissioner Gort. All in favor say "aye." The Commission (Collectively): Aye. 20 December 23, 1996 The following motion was introduced by Commissioner Plummer, who moved its adoption: MOTION NO. 96-942 A MOTION TO DEFER FOR MORE INFORMATION AGENDA ITEM 6 (CONSIDERATION OF SPECIAL COUNSEL TO PERFORM FINANCIAL EMERGENCY SERVICES, BOND TAX AND DISCLOSURE COUNSEL SERVICES) TO THE NEXT COMMISSION MEETING. Upon being seconded by Commissioner Gort, the motion was passed and adopted by the following vote: AYES: Commissioner Wifredo Gort Commissioner Humberto Hernandez Commissioner J. L. Plummer, Jr. Vice Mayor Tomas Regalado NAYS: ABSENT: None. Mayor Joe Carollo --------------------------------------------------------------------------------------------------------------- 8. APPROVE IN PRINCIPLE HAVING DISTRICT ELECTIONS FOR CITY COMMISSIONERS IN MIAMI -- FURTHER APPROVE TO PROCEED WITH THIS EFFORT AS SOON AS POSSIBLE. Vice Mayor Regalado: OK. Commissioner Plummer: Financial recovery. Vice Mayor Regalado: We have... Commissioner Plummer: Item 6. Vice Mayor Regalado: I don't know if we have any pocket items that we want to... Commissioner Plummer: What about item 7? i Vice Mayor Regalado: Item 7, do you wish to... Commissioner Plummer: Or you want to wait for the Mayor? Vice Mayor Regalado: ... do this, Mr. Manager, or wait for the Mayor? r Mr. Edward Marquez (City Manager): I think we should wait for the Mayor, because it's the financial recovery plan. C Vice Mayor Regalado: OK. Let's do it now... I'm sorry?' Mr. Marquez: It's the financial recovery plan draft, and I believe that we should wait for the Mayor on this one. E, fi 21 December 23, 1996 1 r Vice Mayor Regalado: OK, sir. Commissioner Hernandez: Mr. Vice Mayor. Vice Mayor Regalado: Yes. Commissioner Hernandez: If we can, and it was spoken to me last week, and they were anticipating being on the agenda today, and they're here in person, if they can just give us a brief introduction as to what they would like to state on the record, in reference to the single -member districts and the consent decree. Ms. Ballman is here, who represents PULSE (People United to Lead the Struggle for Equality) Organization. Vice Mayor Regalado: Absolutely. What I said to them this morning is that I felt that this is a very important issue. And since today, the focus of the attention is on the contract that we have to deal with and eventually sign with the State of Florida, that would overshadow the importance. And we don't want to see an issue that is so important taken lightly, and it deserves the attention that it has. And because of that, I think it's important that at least we hear what they have to say, and then the Commission will decide later on what steps that we're going to take. So for the record your... Ms. Sandra Stringer: Yes. I am the first vice president of the PULSE Organization. It's People United to Lead the Struggle for Equality. And we do expect... we accept your regard and your apology for having not been included. Thank you very much. The redistricting matter is what we're here to discuss. And we don't want to see it put on the back burner. We don't want to see decisions regarding that deterred. It's a very important issue, including representation for all of the people of Dade County. The government can't continue to be governmenting if some of the I people are left out, are not represented. So we feel that if there are any bugs, like salary for the attorneys, that the consent decree allows that this be negotiated. If it can't be negotiated j amicably, then the Federal government can make a definition for the salary. But it's something that we strongly believe and know that has to be acted on now, has to be resolved now, or else the City needs to be dissolved to County government, which does represent all of the people. Thank you. Vice Mayor Regalado: I guess that we can assure you that this will not be in the back burner. It's just that today is an important day for the City Commission. We have to study, deal, discuss a contract with the State of Florida, and this is why we felt and the City Manager felt that we need to give it more time and more attention in the very near future. So. Ms. Stringer: OK. Well, you know, it was said... Someone said that people are working with the government and to help it. We want to do whatever we can to make this work. So call on us or whatever it takes to get it done, resolved. Commissioner Plummer: So be it. NOTE FOR THE RECORD: Mayor Carollo enters the Commission Chamber at 12:40 p.m. Ms. Donna Ballman: My name is Donna Ballman, and I am the attorney for PULSE. We have filed a lawsuit against the City of Miami under the Voting Rights Act for the districting. I have been speaking with Mr. Jones, the City Attorney, and as my opposing counsel, he and I have 22 December 23, 1996 r been working together on a consent agreement. The terms of the consent agreement basically are that the City agrees in principle to the idea of districts, and leaves it open to the Blue Ribbon Commission that will be appointed by the City to try to come up with an agreement as to how we're going to draw those districts. It leaves completely open how we're going to draw those districts. It gives... The original proposal was until February 28th. I believe that's the proposal that all the Commissioners have seen. The Mayor did ask us to change that to the end of March, to give the City additional time, due to the financial crisis as well. He felt that the City might need additional time to try to draw those lines, and we did agree to that. The... What the agreement says is that then if we do not resolve the idea of how we're going to draw the lines by the end of March, that it would be submitted to the Court, solely on the issue of how we're going to draw those lines, and then the Court would make that final decision. We believe that the lines virtually draw themselves. We know that there's some Commissioners that are already working on proposals. I know Commissioner Gort has some ideas in mind. Commissioner Hernandez also has some ideas in mind. We believe that it's something that people of good conscience can agree on. I think that five out of five Commissioners agree that we need to look at the idea of districts, that we need to go to districting. We've had that commitment from all five Commissioners. So this is just to codify that. And in return for this agreement, we would actually stay the lawsuit, so the Court would enter an order staying the lawsuit so that we don't get into things like having depositions, going into discovery, which is where lawsuits get very expensive. We felt that this would be a show of good faith mutually between the City and us. We would not run up a huge legal bill. We would not run up the bill of hiring expert witnesses and cost the City money, as well, in trying to defend this. Since the Commissioners are in agreement that we need to do districting, let's get this as an agreement. Let's go ahead, get the Court to enter the stay, and say that the City is going to agree to the idea of districts, and then let's go ahead as people of good conscience, who are interested in justice, and in equal voting rights for everyone, and let's go ahead and draw these districts. Mayor Carollo: I don't think that there's a single member of this Commission that's not in favor of going forward with districts. I think all of us at one time or another have made our position clear. The reason that the Manager did not place it in the agenda is mainly having to do with the situation that we presently have and the contract that we're going to be bringing up shortly before this Commission with the Oversight Board and the State of Florida. And the feedback that he has gotten from the State is that they will need to go over this contract. And in essence, the consent decree that we will be entering is a contract. It's an agreement. And that's the sole reason why he did not put it on the agenda. We're all in favor of that. I'm sure once the State reviews it, they will be in favor of it, too, so that was the reason that he asked us to hold back on it. Ms. Ballman: One thing that we would ask, then, is if it's possible, if the Commission could at least vote in principle to support the consent agreement, subject to the approval of the Oversight Committee. Mayor Carollo: Well, when you're saying "in principle," in principle, we could go on record that we want districts. But in principle, it's not going to be an official act of this Commission. If what you want is to hear from this Commission that we are in agreement on going to districts, I'd be happy to make a resolution in principle that this Commission is in favor of going into districts. But for us to make a final determination in this particular issue, the Manager felt that he needed to go through the State as to what he discussed with him. Now, if, you know, you've had a difference of opinion since then, Mr. Manager, or you've been told something different, please let us know. I know I've been up there for some minutes and then I was gone. Mr. Marquez: The... No. That's one of the reasons why I pulled the item off, as far as the contingent nature of fees. And I know that the State is going to want approval on anything that has a financial impact on the City, and this will have a financial impact, unknown at this point in 23 December 23, 1996 r time. And that's... to me, an unknown is worse than a set dollar amount. But also, you know, I pulled it off because this was... this meeting was geared to be a special meeting on the financial crisis. And I was... And I personally feel that we have a lot on our plate dealing with the interlocal agreement and the financial plan, as it is. Commissioner Plummer: Schedule it for January the 9th. A. Quinn Jones, III, Esq. (City Attorney): Ms. Ballman... Mr. Mayor, let me just... let me just... so the record is perfectly clear, because I had requested the item be put on the agenda, OK? And I didn't find out until Friday afternoon with the Manager that it had been pulled. So I just want you to understand that all of our conversations, whatever... you understood that it was going to be on today, as you did, for the 19th, and of course, the Mayor explained to you the reason why it wasn't. So the Manager is correct, he pulled it off without consultation with me, but that's his prerogative. He sets the agenda. Ms. BaIlman: We would again urge that at least the issue be raised as a pocket item today. I know that all the Commissioners have reviewed the agreement and with the... other than the one change of the dates, which is what the Mayor had asked us to do, and which we agreed to, and we did submit that revision to the City Attorney and to the Mayor's office. It remains intact the way we originally submitted it. So we would ask that the Commissioners at least raise that issue. Mayor Carollo: Donna, let me do the following, until the State can review it, and then it's brought back to us as quickly as possible. Let me make a resolution in principle that this Commission goes on record that it is in favor of having district elections for Commissioners in the City of Miami, and that we are in favor of proceeding with this as soon as possible. There's a motion. Commissioner Plummer: Second. Mayor Carollo: There's a second. Vice Mayor Regalado: There's a motion by Mayor Carollo, second by Commissioner Plummer All in... Commissioner Plummer: Let me just for the record, under discussion. The consent decree has a lot of areas that are silent, in my opinion. I am concerned, as I have expressed on the record before about drawing lines. Mr. Silver will know what I mean, when there is a word called "gerrymandering" that I want to make sure that the lines are drawn like totally independent people, not by any politically chosen people. And these are the things that I think that need to be delineated before we vote, or agree to a consent decree. And I think that on January the 9th, we can bring this matter back before us for some kind of hopeful decision, and let's proceed from there. Vice Mayor Regalado: OK. Any more discussion? There is a motion, there is a second. All in favor, say "aye." The Commission (Collectively): Aye. 24 December 23, 1996 $w 2 The following resolution was introduced by Mayor Carollo, who moved its adoption: RESOLUTION NO. 96-943 A RESOLUTION A RESOLUTION DECLARING, IN PRINCIPLE, THAT THE CITY COMMISSION IS IN FAVOR OF SINGLE -MEMBER DISTRICT ELECTIONS FOR THE CITY OF MIAMI, AND THAT THE CITY COMMISSION WILL PROCEED WITH ALL STEPS NECESSARY AS SOON AS POSSIBLE CONCERNING SAID ISSUE. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Commissioner Plummer, the resolution was passed and adopted by the following vote: AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: None. Ms. Ballman: Thank you. Mayor Carollo: Thank you, Donna, for your help and your patience. 9. PRESENTATION / COMMENDATION: PATRICIA ROBBINS / CHRISTINE LEE / RYAN BUCHOLTZ OF FARM SHARES, INC. -- FOR FOOD RECOVERY EFFORTS TO ERADICATE HUNGER. ---------------------------------------------------------------------------------------------------------------- Mayor Carollo: OR, before we proceed if we could make a brief presentation that we intended to have done at the beginning of the meeting, but weren't able to. Commissioner Plummer: On which item, Joe? Oh, presentations. Mayor Carollo: Just a brief presentation, Commissioner. If we can ask Patricia Robbins, Ryan Bucholtz, Christine Lee from Farm Shares, Inc. to come up please. I couldn't think of a more oportune time to present these certificates of appreciation from the Commission and the City of Miami to the people that are running Farm Shares, Inc. Farm Shares, Inc., is one of the key organizations that we have in Florida that is providing thousands of tons of food to the needy. They have taken upon themselves to be able to organize and to receive tons and tons of fresh fruits, vegetables from dozens of farmers, mainly in Dade County but from other parts of the State too, that are donated and then they take it upon themselves to pay for the expense of providing the trucking and then provide the volunteers so that fresh fruits and vegetables are given out to the most needy families. And, December has been one of the most busiest months 25 December 23, 1996 r of the year for them. So, in appreciation of the work they have done, I'd like to present Pat Robbins who heads Farm Shares, with a Certificate of Appreciation. (APPLAUSE) And, these two young people besides her, Christine Lee and Ryan Bucholtz are actually not from Florida. They've come here from other parts of the State and they have been working with Farm Shares for the last what, eight or nine months, approximately? And they'll be here for a few more months with us until they complete a full year that they have volunteered in working with Farm Shares in order to accomplish this. Christine. (APPLAUSE) Ms. Patricia Robbins: Thank you very much, Mr. Mayor. I want to say also a thank you to the Dade Delegation Chairman, Ron Silver. I saw him in the audience. Our funding has primarily been from the State of Florida and its recovery efforts. For those of you who do not know about the Farm Share program, it is a food recovery effort that is based in Florida City and we have collected in the last four and a half years, 25,000,000 pounds of fresh fruits and vegetables that would have gone to the dump. And we have done this with mostly volunteers. And our distribution at the Orange Bowl Saturday, two weeks ago, was staffed by the Mayor's office and volunteers. So, while we have an abundance of fresh fruits and vegetables here in Florida, we really appreciate the Mayor and the Commissioners for lending the support to get this fresh fruits and vegetables out to those in need. And thank you again, Mayor. (APPLAUSE) Ms. Patricia Robbins: I would like to give you a background on Christine and Ryan. Christine is a graduate of Wesley and Ryan a graduate of Harvard, both with honors. And they have devoted a year of their life to feeding hungry people and battling hunger here in the United States. They're going on to Washington, D.C., the middle of February to influence policy on hunger. So we are proud to have these fine young people. (APPLAUSE) Mayor Carollo: Thank you again. -------------------------------------------------------------- ------------------------------------------------- 10. COMMENTS BY COMMISSIONER PLUMMER ON "THE MIAMI HERALD" REPORTING OF CITY COMMISSIONERS' EXPENSIVE CHAIRS. ---------------------------------------------------------------------------------------------------------------- Commissioner Plummer: Yeah, but we've got a new chair. Don't you like our new chairs? Yeah, very expensive chairs. After 25 years in this City, they bought me a new chair and that was so important it deemed an editorial in the Herald. A lot to do about nothing. Unidentified Speaker: Did we get new chairs? Commissioner Gort: Hey, look at this one. Commissioner Plummer: Huh? Unidentified Speaker: Did we get new chairs? Commissioner Plummer: Where did you get that expensive chair? Mayor Carollo: OK. We've done three, four and five. Mr. Clerk can you show me voting in the affirmative on those items that I was away for, please? s Mr. Walter J. Foeman (City Clerk): OK. Mayor Carollo: Three, four and five. 26 December 23, 1996 ---------------------------------------------------------------------------------------------------------------- 11. RECONSIDER 96-942 -- APPROVE HIRING HAWKINS, DELAFIELD & WOOD AND HOLTZMAN, KRINSMAN, EQUELS & FURIA AS SPECIAL COUNSEL TO PERFORM FINANCIAL EMERGENCY SERVICES / BOND / TAX / DISCLOSURE COUNSEL SERVICES, WITH $50,000 CAP-- SEE LABEL 7. Mayor Carollo: Mr. Manager, if we could revisit six. I know that you've expressed that this is an area that you need help in right away, and the firm and group that you have been discussing this with, while it's from out of town, does have the expertise in an area that we really don't have anywhere in Florida. So maybe you could explain again to Commissioner Plummer, who did have an objection to this, why you need it, and maybe we can bring it back. A. Quinn Jones, III, Esq. (City Attorney): Mr. Mayor, before you... You need a motion to reconsider. Mayor Carollo: J.L., would that be agreeable with you? Commissioner Plummer: Mr. Mayor, I'll listen for reconsideration, and let's hear the arguments. You know, my points were very well pointed... but move for reconsideration. I'll so move. Mayor Carollo: Well, but I don't want to move for reconsideration if, you know, we're going to, you know, shut this down. That's why I don't mind discussing it without bringing it to a vote. Commissioner Plummer: Well, you know, the problem... Let me tell you, OK? The problem was, I don't even know what participation, and neither did the Manager, did the local company have. I mean, are they getting thrown a bone? Nobody knows these answers. And I think the... Mayor Carollo: Well, I think some of the representatives are here. They could deal with that immediately. Commissioner Plummer: Well, then I'lI move to reconsider. Let's listen to it. If there's local people that are going to be enjoying part of this benefit, that's fine. That's all I was trying to do. Mayor Carollo: OK. There's a motion for reconsideration and there's a second. Vice Mayor Regalado: Second. Mayor Carollo: All in favor, signify by saying "aye." r The following motion was introduced by Commissioner Plummer, who moved its adoption: MOTION NO. 96-944 A MOTION TO RECONSIDER MOTION 96-942, WHICH HAD DEFERRED CONSIDERATION OF HIRING SPECIAL COUNSEL TO PERFORM FINANCIAL EMERGENCY SERVICES, BOND, TAX AND DISCLOSURE COUNSEL SERVICES TO THE NEXT COMMISSION MEETING. Upon being seconded by Vice Mayor Regalado, the motion was passed and adopted by the following vote: AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: None. Mayor Carollo: OK. We're back on item 6. Mr. Edward Marquez (City Manager): Mr. Mayor, the... I was finding the lawyers right now for the firms involved. The reason why I felt comfortable with going with an outside firm that's joint venturing with a local firm is because there's a lot of investigations going on, or pending between City of Miami bonds, and also Dade County bonds. Now, the majority of the firms that are qualified within Dade County to do this type of business will have done business either with the County and with the City, and it may very well be subject, as a part of the investigation ongoing. So this was a very fresh perspective from an out-of-town firm, and one that had particular expertise with working with recovering entities. Now, Sonny Holtzman is here as the joint venturer on this contract, and he can talk as to his participation. Commissioner Plummer: Didn't he receive a... some kind of a contract recently from the City? Mr. Sonny Holtzman: We had a contract to handle the Parrot Jungle lease negotiations with the State. Commissioner Plummer: Yeah. They've had a contract with the City. Mr. Marquez: I'm talking about bond work, sir. Commissioner Plummer: OK, go ahead. Mr. Holtzman: I just... Commissioner Plummer: I'd like to know... My question was, you're the local firm, the Miami firm. Mr. Holtzman: That's correct. Commissioner Plummer: OK. What percentage of this contract is going to be on a local basis? 28 December 23, 1996 1i Mr. Holtzman: Mr. Mayor and Commissioners, the amount of our work will be totally dependent on what we do. It will not be a percentage of any other person's contract. If we are called upon, for example, to negotiate with the governing board for the State, or any agency of the State, which we're accustomed to doing, and that's been our business, we'll do that. New York counsel, on the other hand, will be there for that specialized expertise that we need so badly in dealing with our crisis. Commissioner Plummer: So you're really telling me nothing. You don't know. Mr. Holtzman: Well, I do know. Commissioner Plummer: Well, I mean, are you going to get 20 percent? Are you going to get 30 percent? Mr. Holtzman: No. We get no percent. Commissioner Plummer: You get no percent. That's what I'm saying. Mr. Holtzman: If we work, for example, six hours dealing with the Fiscal Emergency Board, if we're there representing the City, expressing the concerns of the City, or the City Manager, or the Commissioners, we'll be there. If we have to go to Tallahassee to do it, we'll be there. But I think this will be a continuing process. It's for a number of years. You need representation. I've seen your City Manager at these meetings with no representation. We are familiar with the State. We're familiar with the State's process. I do work in the State, and that's why we would be there for you. Commissioner Plummer: And there's no "not to exceed" dollar amount in any of these contracts? Mr. Marquez: No, but the work to be assigned is on a worker order basis. So... Commissioner Plummer: Doesn't it seem reasonable, Mr. Manager, that... so that this Commission can say that we are retaining some control, that there should be a dollar amount "not to exceed," and if it reaches that point, come back before the Commission? Mayor Carollo: And the Oversight Board. Commissioner Plummer: Oh, absolutely. Commissioner Hernandez: Has the Oversight Board approved this agreement? Commissioner Plummer: You're not going to have that choice after today. Mr. Marquez: We can put in a "not to exceed" with no problem, sir. 1 Commissioner Plummer: So give me a number not to exceed. Mr. Marquez: Not to exceed one hundred thousand. Commissioner Plummer: Do we really want to hear that? Mr. Marquez: Not to exceed fifty thousand. It doesn't really matter what level. I will come back and get... j 29 December 23, 1996 r I,,, i, 0r Commissioner Plummer: Well, they're talking a hundred and fifty an hour to two twenty-five an hour. OK? Mayor Carollo: Commissioner, let me try to clarify this as best I can. The New York people that we're bringing in, they have a tremendous amount of expertise, all kind of different partners that specialize in different areas that we cannot go to and find anywhere in the State of Florida for the simple reason that no one in the State of Florida has had that experience. For instance, one of the partners was one of the general counsels that Mario Cuomo used to help draft some of the agreements between the State of New York and New York City during their crisis. They have had ample expertise through that crisis. They have had expertise in many other similar crises, like in Yonkers, New York, and other States that have gone through financial crises and had oversight boards. And in the area of bonds, we are right now in a situation that, while it still received very little media attention, thank God, nevertheless, it's an area that we're going to have major problems with. We have numerous Securities and Exchange Commission investigations that the City is under right now for bond issues that were given. We will be taking steps in different forms in the future, that if we don't have competent counsel that knows that expertise of law inside out, each of us could be personally liable in actions that we might take in the future. We might have a situation where some of us in the past could conceivably be looked upon by the Securities and Exchange Commission individually. So we want to make sure that this City is protected in the best way in that area and all around. We are getting into areas of law that are very gray, and no one has had those areas of expertise in the State of Florida, certainly, like they have had. Commissioner Plummer: Mr. Mayor, I'm not going to fight you. We need counsel, there's no question. I was only upset when I asked the question, did you see if there was any local firms that were capable of performing the service, and the answer was no. Now, I hope that the City Manager will take that in the future that when he comes before this Commission, he better be prepared to answer that question. If, in fact, we are going to put a qualifying fifty thousand, not to exceed, which would bring it back before this Commission, if, in fact, it were to exceed that amount, I'll go ahead and proceed with it. I'm looking, you know, at a thing here. It's interesting. This is not the top firm of those which I have in front of me. The top firm is a company called Orek, Harrington and Sutclifte (phonetic), and they do a lot more business than Hawkins, Delafield and Wood. And that was another reason I asked the question. Now, I don't know one from the other. OK? I don't know one firm from the other firm. But when you see that you're recommending the number two firm over here, all issues on bond counsel, and the on the other side, they jump up to one and the other one jumps down to number two by a million dollars ($1,000,000) difference. But on the other issue, there is twenty-four million dollars ($24,000,000) worth of difference. Mr. Mayor, proceed with fifty thousand not to exceed. I will vote for it. It's... I am still... It's unfortunate that we didn't check to see if there was a local company, and maybe there was, and maybe there wasn't. But in the future, Mr. Manager, you know that question is going to be there from me. Mayor Carollo: And it's a legitimate question, J.L., but I think that I've explained that we're bringing them on also in areas that there is no local company that has the expertise, and certainly the expertise that these people have on this particular area. And I hope that once we move along with this, that the Manager can sit down with you or maybe some of them could, and give you the insight as to, you know, additional background that they have. Commissioner Plummer: That will be fine. Mayor Carollo: Commissioner Gort. Commissioner Gort: Mr. Mayor, my understanding is, to the questions that J.L. has asked, one of them is, and I think I explained it before, previous experience. We do have qualified firms 30 December 23, 1996 r 4i 04 here who have been involved in the bond business. And because they have been involved in the bond business, they probably have been involved with the City of Miami. Part of the work, as I understand from what I read that these individuals are going to do is try to help us along, along with other individuals, to make sure that whatever investigations taking place with the SEC (Securities and Exchange Commission) and all that, their knowledgeable and they know what they're doing. If we were to use a local firm, they'd have to be... the bond experience, they've probably done business with them. They might have a conflict of interest. On the question on the percentage of the participation of each firm, my understanding is, because there are going to be different topics... and I'm glad we put a cap to it, and it's got to come back to us. My understanding is that Sonny Holtzman's firm has got a lot of experience in dealing with the State, State matters, where we can be advised of that, and the portion of the work depends in where we're going to utilize them. I don't think we... My understanding is we don't have a specific contract. The contract is to have them aboard and use them as we need them, on a basis as we need them, with a cap. That's been my understanding of reading this document. Am I correct? Mr. Marquez: Yes, sir. Commissioner Gort: OK. Thank you. Commissioner Plummer: Mr. Mayor, just two points. Mayor Carollo: Yes, sir. Commissioner Plummer: Number one, you know, if he would have come back and answered to me, no, there is no local firm capable or not involved, that would have been one answer. He didn't. Number two... Mayor Carollo: I understand that. Commissioner Plummer: Number two, Mr. Manager, I will expect that every member of this Commission will receive any and all documents from that firm in New York or the local at any time documents are presented to this City. Mayor Carollo: Absolutely. Commissioner Plummer: That's "all." Not" if delegated." Mayor Carollo: Absolutely. Commissioner Plummer: It is mandated. Mayor Carollo: That's always the case, Commissioner. That's always the case. Commissioner Plummer: No, it wasn't... Well, now, don't let me go into that one. Mr. Tew would have a heart attack. Mayor Carollo: Any further statements? Hearing none, if you would call the roll, Mr. Clerk. Mr. Walter Foeman (City Clerk): I need a motion, Mr. Mayor. Mayor Carollo: Excuse me? Mr. Foeman: I need a motion. 31 December 23, 1996 r Mayor Carollo: We need a motion... Commissioner Plummer: No, I'll move it, with a fifty thousand dollar ($50,000) cap. Mayor Carollo: Moved by Commissioner Plummer. Commissioner Hernandez: Second. Mayor Carollo: Second by Commissioner Hernandez. All in favor, signify by saying "aye." The Commission (Collectively): Aye. Mayor Carollo: We don't need the roll call. Thank you. Mr. Holtzman: Thank you, Mayor. Thank you, Commissioners. The following resolution was introduced by Commissioner Plummer, who moved its adoption: RESOLUTION NO. 96-945 A RESOLUTION WITH ATTACHMENTS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH HAWKINS, DELAFIELD & WOOD AND HOLTZMAN, KRINZMAN, EQUELS & FURIA, P.A., TO PROVIDE LEGAL FINANCIAL EMERGENCY SERVICES AND BOND, TAX, AND DISCLOSURE SERVICES TO THE CITY OF MIAMI UNDER THE TERMS AND CONDITIONS AS SPECIFIED IN THE ATTACHED AGREEMENT; ALLOCATING FUNDS THEREFOR, IN AN AMOUNT NOT TO EXCEED $50,000 FROM 9211002 RESERVE EMERGENCY SERVICES, ACCOUNT 270, PROFESSIONAL SERVICES - OTHER. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Commissioner Hernandez, the resolution was passed and adopted by the following vote: AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: None. 32 December 23, 1996 ---------------------------------------------------------------------------------------------------------------- 12. AUTHORIZE CITY MANAGER TO EXECUTE INTERGOVERNMENTAL COOPERATION AGREEMENT, WITH MODIFICATIONS, WITH GOVERNOR / FINANCIAL EMERGENCY OVERSIGHT BOARD / CITY.-- ! SEE LABEL 3B. APPROVE INTERGOVERNMENTAL COOPERATION AGREEMENT AMONG GOVERNOR / FINANCIAL EMERGENCY OVERSIGHT BOARD / CITY. ---------------------------------------------------------------------------------------------------------------- Commissioner Plummer: We've got one more item and let's get out of here. Is this ready? The interlocal agreement. Mayor Carollo: Yes, let's go back to the interlocal before we... Well, let's... j Vice Mayor Regalado: I have a pocket item. Want to do this after we... pocket item? Mayor Carollo: Sure. On the interlocal agreement, we're here now. Mr. Manager, the draft that I have before me, was the draft of December 26, 1996, at five p.m. Since that draft, was there anything ejse that was changed significantly? Mr. Edward Marquez (City Manager): Nothing significantly changed. What they did is, this morning another draft was handed out that incorporated pages of changes to pages ten and nine. And for all intent and purposes, these are clerical, scribner type of changes. Mayor Carollo: Yeah. Yeah, these are changes that have gone through already, that... Commissioner Plummer: Are they incorporated in this document which I am going to refer to as final? Mr. Marquez: Yes, sir. Commissioner Plummer: This is the final document? Mr. Marquez: Yes, sir. Commissioner Plummer: This is the Bible for the next five years? Mr. Marquez: If so passed. Mayor Carollo: Well, again Commissioner, when you use the word five years, it... Commissioner Plummer: It's two plus three. Mayor Carollo: No, no, no. There's language in here that at a given time it could be as little as two years or three years, or it could be more than five years, possibly. I would like it to... Think of it as language that will help us be out of this fiscal emergency, maybe in two or three years. So, while it's not... maybe it's clear in layman's terms, it's here. The only area that I'd like to add to this after I've spoken to the attorney for the State and the Oversight Board, is that he's working on a change on the first page of this intergovernmental agreement. In the first paragraph that I witnessed where it says "... whereas from December 3, 1996, pursuant to the citizens request, the Governor acknowledged the City..." 33 December 23, 1996 ri Commissioner Plummer: What page, Joe? Mayor Carollo: This is page one that I have. I don't have the last copy that was handed out, even though I was aware of those changes. We're going to make some changes there to clarify the language more since, is this the one then? Unidentified Speaker: Yes. Mayor Carollo: OK, since it hasn't been sent yet, and the final wording is being finished, what I'd like to include in the resolution, in the contract that we're going to approve, is that we'll be approving this subject to a change of putting language from the executive order in the agreement, on this paragraph. And what that is stating, is clearly spelling out why the City, why the Manager requested 218 and that was because we had no choice under the law. Commissioner Plummer: So, actually you're stating... Mayor Carollo: Well, we want to spell it out clearly that... Commissioner Plummer: In a matter of fact. Mayor Carollo: Yeah, exactly. So that's the change that they're going to be bringing that to us, that will be incorporated here. And this is why once we make the motion to approve this, it will be made subject to a change of putting in language from the executive order in the agreement. Commissioner Plummer: All right. Mr. Mayor, let's go on the record also. And let me use page eight as the example. Mayor Carollo: Mr. Manager, by the way you're taking your orders from up here, OK. Just want to clarify that. Mr. Marquez: I wasn't asking questions, sir. Yes. Mayor Carollo: OK, thank you. Commissioner Plummer: Page eight, for example. And I want to go on the record. Page eight is full of things that are maybes. They are not ironed clad, locked into stone. Who is to say what is the increase managerial and operational accountability? Well, what you think is one, I might think different and the Oversight might think another. So let's make it sure and make it understood. For example, consolidate or eliminate City programs. How many, when, curtail? So, what I'm saying is, that this is a document that in some areas is locked into stone. But there are many areas of this document, so that it's understood, are very, very vague that are not locked into stone. Mayor Carollo: Well, this is why Commissioner, I wanted each of us to be able to go through this document, ask whatever questions we needed to ask, make whatever statements we needed to make. 'cause we will be married to this document for at the very least, a couple of years, maybe more. Commissioner PIummer: Well, just for the record, on section or number six, page seven from "A" to "P", it is this person's opinion that these are things that will hopefully in some manner be accomplished that have no, absolute, definitive number, dollar value or any of that attached to them. Mayor Carollo: OK, you're talking about page six, Commissioner. 34 December 23, 1996 r Commissioner Plummer: I'm talking about page... Mr. Jones: The five year plan. Commissioner Plummer: ... basically, eight and nine. Mayor Carollo: Eight and nine. Commissioner Plummer: Right. Commissioner Plummer: So what I'm saying is, there are some of the things here that we're locked in. There are many other things here that are not locked in because they don't have a definite number, a definite... improved record keeping. Well, you know, that's going to say your idea of improving. We might have a different idea of improving, and the Oversight might have another. Now, whose going to make that determination because it's not locked in here? Mayor Carollo: It's going to be the Oversight Board's preogative, Commissioner. Commissioner Plummer: OK. Well, I'm just saying that it's... You know, then you come back and you go back down to where it says back here. And it says... "Failure to comply" OK. So, I'm just making it on the record now. That "Failure to Comply," when you're asking me to do things that don't have numbers and don't have dollars attached to them, are up in the air. Mayor Carollo: Commissioner. Commissioner Plummer: Other than that, I have no problem with this document, Mr. Mayor. Mayor Carollo: OK, Commissioner Gort. Commissioner Gort: Commissioner, like J.L., says. We all look at it in a different way. I looked at the optimistic way. I think it's liberal enough with suggestions, and for us, it's up to us to come up with the numbers and the specifics. And I think what the plan here shows that, sort of a map way, roadway to take. And from here we can... I think most of the things we've done. I think we're in agreement of all the things to be done. My understanding also is, if the Committee by any chance did not like any of the recommendations, they'll come back to us and they'll tell us the reason why. And we'll get a chance to answer them and tell them well, we think yes or no and we can answer them. I personally looked at that, and I don't have a problem with it. Most of the things that I see here in page six, seven and eight are the things that we... A lot of this we have done already. We have made the decision and I'm we are going to do all the other ones. Vice Mayor Regalado: Mr. Mayor. Mayor Carollo: Commissioner Regalado. Vice Mayor Regalado: For the record and for the benefit of the press and the public opinion, I believe and I'm sure that many of us believe that this is a partnership. That this document does not mean the State of Florida is taking over the City of Miami. What it means is, that they want to help and that they are willing to do their part and we are willing to do our part. I tried to express that fact in the document and it was explained to me that this document was an economic document, not a political one. But it still the will of the State of Florida is that they're here to help and not to take power away from this government elected by the people of the City of Miami. So, I don't have any problem, and in fact it is said here, that they're coming to work with us and not to order anything on the City Commission. i 35 December 23, 1996 Commissioner Hernandez: Mr. Mayor, page 11, that was the biggest problem I had. Mayor Carollo: Uh-huh. Commissioner Hernandez: And we haven't received an answer, and when the manager explained to me that they're, I guess, working on a definition. Page 11, paragraph 11 on "Contractual Obligations"... Mayor Carollo: Uh-huh. Commissioner Hernandez: ... which basically says here, "we can't enter into amend, renew or extend any new or existing contracts." And then it goes on to... "which have more than an insubstantial financial impact" and then right down to the middle it says "the working definition of the term in substantial financial impact." We to date do not know what that is, so that could mean any contract from one dollar ($1) to I'd say one million dollars ($1,000,0000) at this point. Mayor Carollo: That's correct, Commissioner. The language is being worked on that where it will be clarified soon. I personally, and let me correct that, let me clarify it rather. I certainly understand your concerns but I'm personally am not concerned with this language 'cause I know that the Oversight Board is going to be reasonable. I trust them to be reasonable and I think if anything, this is going to give us a major guarantee where it's going to finally get the message out to investors all over the country and potential people that want to bid in the City, that there is going to be a full level playing field. And I think that this is going to open up many new doors for us and it's going to set us in the right path to go out and be able to put to the use that we haven't done with many of our City properties. And have the investors come in bidding projects that will bring the revenues for the years to come that we so badly need. To have those recurring revenues that this City should have been having already, but will have. I also understand your concerns for maybe some of the smaller contracts. And, that's something they will be reasonable with, I am sure. Commissioner Hernandez: Oh, what's clear in the language is... I guess that's the most pleasing part about it is that, if they do not get agree with our request, they give us an opportunity to come back with a different plan and... Mayor Carollo: That's correct. Commissioner Hernandez:... they don't exactly tell us what to do, but they tell us if we don't agree, go back to the drawing board ... Mayor Carollo; That's correct. Yeah, this is why, you know, we have been speaking about a partnership from day one. Commissioner Plummer: Well, Mr. Mayor I would hope. I've asked the question twice, and you've asked me not to put it up on top of the record. In reference to the port expansion property, I would ask, since every member of this Commission has got to know what's going on if we're going to be making decisions involving the whole, that you have the Manager come around to each one of us and discuss with us what's going on so that we will know. Mayor Carollo: What, what's going, no. Commissioner Plummer: Because I can't sit here and make decisions on what is in this document here without knowing the total picture of that or any other subject that could vitally affect what we're doing. 36 December 23, 1996 r Mayor Carollo: Well, obviously Commissioner, whatever the final resolution there will be, before this Commission on the FEC Bicentennial Tract or any other track, the Oversight Board will have to give its approval and make sure that the decisions or the contracts that we will be looking upon to enter makes financial sense to the City of Miami. Commissioner Plummer: I'm well aware of that. Mayor Carollo: Once we have any kind of an agreement that will be ready to be approved upon 1 or considered to be approved by this Commission, you know, the Manager will quickly bring it up before all of us. But right now I will tell you, that outside of what we knew that was old and was torn up with all the new agreements that came, there is nothing on the table. Commissioner Plummer: OK. All I'm saying is that each member of this Commission has to be fully aware of any and all transactions that could affect this document which will be submitted. Mayor Carollo: Absolutely, Commissioner. And I fully agree with that. Commissioner Plummer: All right. And I don't know at this point whether we are talking about the port expansion property to be sold, whether it's to be a new lease or what it is to be? Mayor Carollo: Well, none of us know that. Commissioner Plummer: And if there is any discussion... Mayor Carollo: None of us know that, Commissioner. The County is considering what proposals that they can make to us and until we receive the proposals, none of us know which way we're going to go. Commissioner Plummer:. All right. Then for the record as it is today, there is nothing on the table in reference to the port expansion property different from what this Commission has voted on. Is that correct? Mayor Carollo: That's correct, Commissioner. Commissioner Plummer: Mr. Marquez. Mr. Marquez: Within the strategic recovery plan, it was not... Commissioner Plummer: That was not my question, sir. Don't play semantics with me. Mr. Marquez: But sir... Commissioner Plummer: Is there anything different than what was approved by this Commission? Are you aware of any negotiations, discussions or anything relating to that parcel of property? Mayor Carollo: Well, now you're asking for something different. Commissioner Plummer: No, I'm not asking for anything different. Mayor Carollo: No. Yeah, are you aware of any discussions, negotiations, or anything. Commissioner Plummer: Or has he been... 37 December 23, 1996 ar.� r Mayor Carollo: I will tell you for the record, that I have had some very limited, very limited discussions with the County... Commissioner Plummer: All right, sir. Mayor Carollo: ... and nothing has come of that. They're having their law department, their lawyers on this area check certain things out before they come back to us and give us an offer. Commissioner Plummer: All right, I'm still asking Mr. Marquez. Mr. Manager, have you had any discussions relating to in any way changing the document that is presently known as the interlocal agreement? Mr. Marquez: No, sir. I am trying to set up a meeting with the County Manager to discuss the possible sale and or enhancement of the FEC lease. Commissioner. Plummer: Whatever, fine. Mr. Marquez: Everything is open. Commissioner Plummer: Thank you, sir. Commissioner Gort: OK. Commissioner Plummer: It's on the record. Commissioner Gort: My... Sir. Mayor Carollo: Yes, Commissioner. Commissioner Gort: My question is, and looking at this plan that's being put together, the minimum that we can count on is six million dollars ($6,000,000). It could go further up, but the i minimum we can count on for this purpose is six million dollars ($6,000,000). Mayor Carollo: Well, look Commissioner we're getting into a different area. Commissioner Gort: I know, that's... Mayor Carollo: Yeah, that's the proposal. We'll get into that a little later. Commissioner Plummer: We'll talk about that later, yeah. Commissioner Gort: There is a motion, there is a second. Mayor Carollo: OK, there was a motion and a second. But we're still going through the different questions that everyone had on this. Mr. Jones: Mr. Mayor, if I could? I have one question which I want... Mayor Carollo: Yes, Mr. City Attorney. Mr. Jones: ... and I envision at some point it may be a point of contention or whatever else, and I spoke with counsel. To the extent that we may settle either by mediation or by compromise, any lawsuits at a future date. My understanding in speaking with the Governor's counsel that as long 38 December 23, 1996 as these funds were part of a budget for this particular fiscal year, that it would not require going to the Oversight Board. So I want it understood and up front, now that that is in fact the case. That as long as it is money that is budgeted as part of the self insurance fund, that I will not have to come, not only here, but submit it to the Oversight Board. So, I would want that understood that you know, if Commissioners at a future point in time, consistent with our processes for settlement of lawsuits, and all that the question... if the question is somehow raised that, does this have to go to the Oversight Board? I'm telling you that I've been advised that as long as these are budgeted funds, we don't have to go through that process. Commissioner Plummer: I don't think that's realIy... When you're operating with a budget book that the Manager is telling us is a funny book. How do you establish what is reality when it refers to those any particular funds? Commissioner Gort: ... decision of opinion today. Mr. Jones: Look, you know, Commissioner I have to:.. You know, I have to operate on what you pass as a budget. And what was passed as a budget was basically, roughly for the self insurance program eighteen some million dollars. Commissioner Plummer: We' didn't have the money. Mayor Carollo: Mr. City Attorney. Mr. Jones: Yes. Mayor Carollo: If you have had a discussion with the attorney for the Oversight Board and this is what he's told you, then I could only assume that this is the policy that we will be working on then. Commissioner Plummer: Well, the only question I have, I guess is, is there the money there to cover that amount that was budgeted? When we hear a police chief tell us that he had a 90, what was it? One hundred million dollars ($100,000,000) budget and suddenly overnight it was one hundred and four ($104,000,000), well those four millions ($4,000,000) weren't there. Is there? My real question, in your particular question, is there adequate funds, Mr. Manager, there to cover that which he has just proposed? Mr. Marquez: We believe so, sir. Commissioner Plummer: OK, you believe so. And then I'm going to sit here and say, I hope you're right. And then we'll both pray. Commissioner Gort: Correct me if I'm wrong. But my understanding is, the decision that we're to take here today, is to present this and this will be our budget. Unless... Mayor Carollo: Well, that's no. We're going to be discussing this later on, the budget. Commissioner Plummer: That's not, that's not a budget. Commissioner Gort: Well this is part of the expenditures and the revenues we're... Mayor Carollo: Yeah. But that's going to be different. Commissioner Gort: ... and we're going to adopt a budget to this. 39 Cy Mr. Marquez: Can you restate the question sir? I'm sorry I didn't hear you. Commissioner Gort: OK. My understanding is, that in this financial plan that we have here, if it is accepted by all parties, our budget, we'll have to justify it according to this plan? Mayor Carollo: If it's approved... i Mr. Marquez: If the Board... If the Commission accepts this as the plan, yes. Commissioner Gort: Right, if it's accepted by everyone, this dictates how the budget is going to go, right? i Mr. Marquez: Basically yes, sir. Commissioner Gort: OK. Mayor Carollo: OK. Any further questions on the Intergovernmental Cooperation Agreement? OK, hearing none, we have to approve the agreement and we also have to approve a resolution that goes along with the agreement. On... If we could go to the resolution. It's only a two pager, back and front. Commissioner Plummer: Do we have copies? Mayor Carollo: You should have all had copies with your package. Mr. Marquez: It's in your item two. Commissioner Gort: Question. Commissioner Plummer: Oh, yeah, yeah. OK, this one, yeah. Mayor Carollo: OK, if we could go to this resolution. On the second paragraph of the resolution where it says... "Whereas the Governor created a financial emergency Oversight Board to oversee the fiscal affairs of the City for a period of three years." The "three years" needs to be taken out of. there, it's inaccurate. That will be in conflict with the intergovernmental cooperation agreement. The wording that we need to put down there would be ... "the fiscal affairs of the City.for the period specified in the intergovernmental cooperation agreement." I'm reading on the second paragraph of the first page of the resolution. Do you all have that? Commissioner Plummer: Yeah, I do now. Commissioner Gort: Yes. Vice Mayor Gort: Yeah, we do. Mayor Carollo: Basically, what we're stating, since we don't have an exact amount of time. It could be two years, three years, four years, five years or more, we're cutting out the wording of three years and we're referring this back to the intergovernmental cooperation agreement. Commissioner Plummer: OK. Mayor Carollo: Also, on the... Commissioner Plummer: How do you want to change that now? 40 December 23, 1996 r Mayor Carollo: OK, "whereas the Governor created a financial emergency Oversight board to oversee the fiscal affairs of the City, for the period as specified in the intergovernmental cooperation agreement.? Commissioner Plummer: Eliminating the word "three years?" Mayor Carollo: Eliminating the word "of three years." And on the top line instead of "City for I, it will be "City for the." On the first paragraph of this resolution, it says "whereas on December 3, 1996 pursuant to the City of Miami's request, we will change this to say "pursuant to the change of putting language from the executive order in the agreement." In other words, we want to use the same language in this paragraph as we're going to use in the first paragraph on page one of the intergovernmental cooperation agreement. All that we're going to do there is, spell out that what this City did and the City Manager did was complied with State Law in Chapter 218, in having to inform the Governor that we were in a fiscal emergency. Once the attorney of the Oversight Board sends to us the wording that he wanted to use in the agreement, we'll just substitute that wording in the same resolution. Is that OK? And those are the only changes that we will be making in the agreement or the resolution and as I stated, we will approve the resolution in the agreement subject to those changes of putting the language described that will come from the executive order into the agreement. Commissioner Gort: Move it. Mayor Carollo: There's a motion on the agreement. Is there a second? Commissioner Plummer: On the agreement or the resolution first? Vice Mayor Regalado: Second. Mayor Carollo: OK, on the resolution. Mr. Walter J. Foeman (City Clerk): Mr. Clerk, can you call the roll on this please? Mr. Foeman: Sure. 41 December 23, 1996 The following resolution was introduced by Commissioner Gort, who moved its adoption: RESOLUTION NO. 96-946 A RESOLUTION WITH ATTACHMENTS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERGOVERNMENTAL COOPERATION AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, BY AND AMONG THE GOVERNOR, THE FINANCIAL EMERGENCY OVERSIGHT BOARD AND THE CITY OF MIAMI. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Vice Mayor Regalado, the resolution was passed and adopted by the following vote: AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: None. Mayor Carollo: Is there a motion on the agreement? Commissioner Plummer: Move it. Commissioner Hernandez: Second. Mayor Carollo: There is a motion by Commissioner Plummer, second by Commissioner Hernandez. Mr. Foeman: Roll call. 42 December 23, 1996 [i The following motion was introduced by Commissioner Plummer, who moved its adoption: MOTION NO. 96-947 A MOTION TO APPROVE THE INTERGOVERNMENTAL COOPERATION AGREEMENT AMONG THE GOVERNOR, THE FINANCIAL EMERGENCY OVERSIGHT BOARD AND THE CITY OF MIAMI. Upon being seconded by Commissioner Hernandez, the motion was passed and adopted by the following vote: AYES: Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: None. ---------------------------------------------------------------------------------------------------------------- 13. DISCUSS / REVIEW ITEMS ON FINANCIAL RECOVERY PLAN FOR FY'96-'97 -- CITY MANAGER TO MODIFY PLAN AS DISCUSSED PRIOR TO SUBMITTING SAME TO FINANCIAL EMERGENCY OVERSIGHT BOARD -- COMMISSION SELECTS KEY PROPERTIES TO IMMEDIATELY ADVERTISE REGARDING THE SOLICITATION OF APPRAISALS: MIAMI SPRINGS GOLF COURSE / MANUEL ARTIME / MUNICIPAL JUSTICE BUILDING / SOUTH POLICE SUBSTATION / BOBBY MADURO STADIUM -- COMMISSIONER PLUMMER DIRECTS ADMINISTRATION TO RESEARCH IF POLICE HELICOPTERS CAN BE SOLD TO GOVERNMENT AGENCIES -- COMMISSIONER PLUMMER FURTHER REQUESTS ADMINISTRATION ENSURE COMMISSIONERS ARE FULLY INFORMED PRIOR TO COMMISSION MEETINGS REGARDING ANY POTENTIAL OFFERS TO BUY CITY PROPERTY. -- COMMISSIONER PLUMMER ADVISES COMMISSION THAT STATE SENATOR RON SILVER WILL ASSIST CITY IN TALLAHASSEE WITH EFFORTS TO PLACE PROPERTIES ON TAX ROLL. -- SCHEDULE SPECIAL COMMISSION MEETING FOR 12/30/96 BEGINNING AT 11 A.M. ---------------------------------------------------------------------------------------------------------------- Mayor Carollo: OK, and the last item on the agenda before we handle any pocket items that still might be left, will be seven on the agenda, I believe. Commissioner Plummer: I have a question of the Manager. Mr. Manager, have at any time you or anyone else of the City presented the matrix by Merrett Stierheim to the Oversight Committee? Mr. Edward Marquez (City Manager): Yes, sir. Commissioner Plummer: Have they commented on it? 43 December 23, 1996 r Mr. Marquez: They're using it as basically the base line. Commissioner Plummer: All right. So in other words, what they're saying is, is that's acceptable to them? Mr. Marquez: They're indicating such. Commissioner Plummer: Thank you. Commissioner Gort: Mr. Mayor, my understanding in reading the other documents that I've read, that they're using the matrix as the... Stierheim plan as the basis of everything that we do here. Mr. Marquez: They're using the Stierheim plan as the basis, as a base line. And what I mean by that is that, until they have this estimating conference put together to check out all of the numbers, they're assuming that the assumptions contained in the Stierheim's report is solid. Now, we can present a plan. Whatever plan we present should use the Stierheim's report as a beginning point and then you can run through any changes that you want. Mayor Carollo: Well, and let me say this, if I may for the record. I probably should have said it just be before we voted on the agreement, but nevertheless, there's still time. The Stierheim plan did not have 100 percent recurring revenue for the second fiscal year, and only dealt with two fiscal years. The one we're on, and the one coming next year. It did not have 100 percent recurring revenues nor anywhere near it. What we approved today, talks about that we can only have up to 40 percent one time revenues in this fiscal year that we're in now, to balance the books, and that on the next fiscal year and from then on, the goal is to have 100 percent recurring revenues. We all know, and the State, the Oversight Board, this Commission, that's something that's impossible. So, I don't want anybody going out there now and saying what this Commission approved was that we entered into an agreement that we will have 100 percent recurring revenue for the next four fiscal years after this one. Because if anyone thinks that, then, basically, what we voted upon was to make this partnership a failure from the minute that we signed the contract, and that's not what we did here today. What we did here today in this agreement, is to say that that is the goal. You know, we've set the highest possible goal that we could have that I don't think there's a City in the whole country that meets that goal. But that's the highest goal that we set. But at the same time in page four, on three of the five year plan, on 3b, it says for fiscal year 1997/1998, and each year thereafter eliminate 100 percent of the recurring deficit ' amount as agreed upon by the estimating conference. And such recurring deficit amount must be reduced with recurring revenues or recurring expense reduction. The key here is, is that we're talking as agreed upon by the estimating conferences. And that's what we're going to be guided upon. And that you could be sure is not going to show 100 percent recurring revenues. Because if that was the case, we won't be here today because we won't have a financial crisis, if we could accomplish that. So, I want to clarify that for the public and to the media so that the story could be put out like it is, not like it might be interpreted. Commissioner Plummer: To their own damnation. Mayor Carollo: OK, where were we, Mr. Manager? Mr. Marquez: Mr. Mayor, what you have before you is a draft of the numbers that we've have to date, and this is for discussion purposes. If you like it, you can adopt it as a plan, if you don't like it, you can modify it. If we want to have a separate... another meeting to discuss this, we can do that also. Mayor Carollo: As I mentioned at the last meeting that we had, I wanted to be able to discuss this budget today, and then have one last brief meeting that we could finalize it. What we need 44 December 23, 1996 g.M r to do is to see in everybody's schedule how we could fit, you know, maybe an hour, at another point in time so we could... after we go through it today, then can come back and finalize it. Mr. Marquez: OK. Mr. Mayor, I'd like to walk you through what you have before you, so that you can... Mayor Carollo: Yeah, before you start doing that, let's see out of the dates we have left when everybody could possibly be back to finalize this year, December. Vice Mayor Regalado: The morning? Commissioner Gort: Mr. Mayor, the only day that I can come back would be the 25th. Mayor Carollo: Christmas? Commissioner Plummer: The hell you say. Mayor Carollo: I was hoping that would be the only day that we won't have to meet. Commissioner Gort: I've never taken vacation this year, and I already have reservations and things done already. Mayor Carollo: I could understand that. Well, one thing I might suggest, even though maybe the... Commissioner Gort: Make it tomorrow. Mayor Carollo: ... maybe his vote... Well, maybe even tomorrow. Commissioner Plummer: Excuse me. Commissioner Gort, didn't you indicate you plan on being back on the third? Mayor Carollo: No, but we want to have it in December. We don't want to take a chance... Commissioner Plummer: No, the reason I was saying that... We've got to surrender this by the third. Mayor Carollo: By the third. Commissioner Plummer: And if we met on the morning of the third, and surrendered it in the afternoon, Mr. Gort would not be put off of a... Mayor Carollo: Well, that's cutting it real short, J.L., and I think we need to do it this year. Commissioner Plummer: I'm here, so I was just trying to help him out. Mayor Carollo: What, if...? You're going to be leaving at what time on the 26th, Willie? Commissioner Gort: I'm leaving on the 25th at eight o'clock at night. Mayor Carollo: Eight o'clock at night, on the 25th. Well do you? Will we have time to go over all this and try to meet tomorrow and finalize it? Vice Mayor Regalado: Tomorrow, early in the morning. Can we do that? I don't mind, if it's early in the morning. 45 December 23, 1996 r Commissioner Gort: We can meet at eight o'clock. Vice Mayor Regalado: Nine. No, don't say eight, don't say eight. Then we won't start until ten. Commissioner Gort: Seven thirty? Seven thirty. Vice Mayor Regalado: No, I mean, you know... Mayor Carollo: No, no. Well, we had to make a lot of changes and go over quite a few things today. That's why we had the start that we did. Commissioner Plummer: If you're going to meet tomorrow, it's got to be six a.m. I've got to go to work. Now my people don't wait. Mayor Carollo: All of a sudden... I Commissioner Gort: They've got all the time in the world. Commissioner Plummer: I've got an airplane to meet at four o'clock. You know that airplane isn't going to wait for me. Mayor Carollo: All of a sudden, Plummer has got a lot of business. i Commissioner Plummer: Thank God. Your dieing is my living. Now take the hint. Mayor Carollo: You're going to be waiting a long time for me. A long time. i Commissioner Gort: Mr. Mayor, let me ask you a question. I think we've worked with the Manager on this for quite a bit now. Has there been that many changes to make that much of a difference? I mean, can we go over it today? Maybe, we can come to an agreement today. Mayor Carollo: Well, let's go over it today, Commissioner, and then we can tentatively maybe plan a meeting tomorrow, briefly to go over whatever else we need. About what time will you be done with your... Commissioner Plummer: Six in the evening. Mayor Carollo: ... job criteria. Commissioner Plummer: Are you going to be here tomorrow? Commissioner Gort: Yeah, I'll be here tomorrow. Commissioner Plummer: Joe, I could probably meet around six o'clock. Mayor Carollo: Six p.m.? Commissioner Plummer: Yes. Six or seven o'clock in the evening I'll be finished with everything. Mayor Carollo: Six or seven? 46 December 23, 1996 Of 19 Commissioner Plummer: "Mas o menos." Mayor Carollo: Yeah, but tomorrow you're getting into Christmas Eve, so... Commissioner Plummer: Well, it's a hell of a lot better than Christmas day. Mayor Carollo: Will it be...? Commissioner Plummer: Seven o'clock tomorrow night. Let's make it definite right there. Mayor Carollo: OK, can we make it six? If you could make it at six, if we're going to do it? Commissioner Gort: How about in the morning? Commissioner Plummer: Six o'clock in the morning is fine with me. Vice Mayor Regalado: Six in the morning? Commissioner Gort: Yeah. Commissioner Plummer: Yeah. Commissioner Hernandez: It's better in the afternoon. f Mayor Carollo: Six in the morning or six in the evening? Commissioner Plummer: Take it... Commissioner Hernandez: Morning. Vice Mayor Regalado: Morning, morning. Commissioner Gort: Morning. You've got the rest of the day. Mayor Carollo: Well, gentlemen that's... I mea n... Commissioner Gort: I've got to cook tomorrow people. Mayor Carollo: I can be here whatever time but that's not realistical. It's, you know... If? Commissioner Plummer: Well, let's, let's stop for one minute, all right. Is there anything here in this that's been proposed to us today, that we cannot in fact finalize today? I mean, are we kidding ourselves? Mayor Carollo: I don't know, J.L. I know that there are probably some areas here that we might have questions and might not be able to get answers here today. And that's why I'm trying to save us a little bit of time... Commissioner Plummer: All right, let's... Mayor Carollo: ... so that we do get into some of these issues out in the public... Commissioner Plummer: Let's tentatively plan for tomorrow night at six. 47 December 23, 1996 r Vice Mayor Regalado: OK, tentatively. Commissioner Plummer: Yeah. Mayor Carollo: We'lI revisit that once we go through this. Commissioner Plummer: All right. 'Cause as I look at this, and I'm just going to go on the record real quick, right up front. I don't think they're going to accept this. OK, that's just my opinion and for what it's worth. And you know, some of the things that we've got to have Mr. Manager, when you start talking about revenue enhancements, and you're saying they're recommendations. We need backup material on twenty-seven million dollars ($27,000,000) and six million dollars ($6,000,000) and all that kind of enhancement. I think as I brought out to the Manager before and I don't know about to others, but to me, it was misleading. When you come down to revenue enhancement recommendations on the back page and you look at these numbers, these numbers in parenthesis are deductions from the matrix of Stierheim. They're not from last year's budget. They're from the matrix and based on that, I just really serious question whether or not it's going to fly. So, take it from there. I just want to go right up front. Commissioner Gort: Mr. Mayor. Mayor Carollo: Yes, Commissioner. Commissioner Gort: I have a question. It's my understanding and correct me if I am wrong. Our staff and administration is working very close with the State in a lot of its documentations or not? Mr. Marquez: We're in recurring discussions with the State, yes. Commissioner Plummer: But it's just discussions. Commissioner: So they're aware of this? Mr. Marquez: Yeah, they've seen this format before. Commissioner Gort: And my understanding, J.L... I see what you're seeing but if you look at the final numbers, all that you see here maybe enhancement recommendations have taken place. They're already placed in these numbers. Commissioner Plummer: Willie? Commissioner Gort: And what it shows here, according to the Manager, and I'd like to go through the whole thing is, that we should have at the end of the year a surplus of nine million dollars ($9,000,000). Commissioner Plummer: Willie, I don't disagree with your theory. What I disagree with OK, is if you come to some of these things that in my estimation are not going to be possible. They're a pie in the sky. Now, that's where I think, you know, that we've got the problem of saying... Well, just go over here. Building and Zoning adjustment fees, OK. All of these things over here, you hope, and let me tell you something the Mayor has brought out one thing that really has been a big amount of dollars. But I don't think it will bring, and that's the back garbage tax. I don't think you're going to collect in the remainder of this year the amount of money that is projected. Now, that's my personal opinion. They've done a good job. They're collecting a lot of back garbage fees that have not been paid before. But I don't think that it's realistic to believe that the number that's contained in here is going to be met. And that's why I am saying that I don't think this thing holds water. 48 December 23, 1996 r Mayor Carollo: Mr. Manager, can you bring the water to Commissioner Plummer? Commissioner Plummer: Please, yeah. Bring me a lot of water. Yeah, we're drowning. Mr. Marquez: Mr. Mayor, Commissioner Plummer. The purpose of this is to go line item by line item so that you can tell, you know, we can adjust it as you all see fit. If I may, just jump right into it? Let me just... Turn to page... on page one, so that you know the segments of this thing. First, breakdown of the deficit through the strategic plan. This is where you come up with the sixty-eight million dollars ($68,000,000) that's contained in Merrett Stierheim's report. Funding solutions matrix, this is your Tab 5. All those items that were union concessions, pension adjustments, revenue enhancement recommendations, all contained in the Stierheim report as modified by the page that's behind this thing. The next section, New Revenues Cost Savings, these are new items at the direction of the Commission we did the sweeps. We have certain comfort at the dollar amount that we can generate from this sweep. These are new items that were not covered by the Stierheim's plan. Departmental Enhancement section. These are add to appropriations so we can start addressing some of the managerial concerns and operational issues that I know that the State's Financial Oversight Board will want to see us start implementing. And then the Additional Capital Cost are the implementation of a safety program and the purchase of some boat racks for the Public Facilities Group. For items, these are additional capitals that are not in the Stierheim's report. Now, if I could take you back to the second page so I can flip you back to the first and second. In Tab 5, under Actions Taken, in the Stierheim's report there is a list of items that come out to thirty thousand ($30,000) one time, five million fifty-six ($5,056,000) and annual items for a total of five million eight -six ($5,086,000). There are certain adjustments. I've asked staff to go through each one of these items and reduce or increase where they thought that there was timing differences. There are two minor adjustments to this number and I have a new subtotal. The same thing with the union concessions. The totals twelve million nineteen ($12,019,000) was the item in the Stierheim's report. We've had an adjustment, a mathematical adjustment related to the cost of living adjustment and it's a deduction to this amount, so I'm adjusting it here. The pension contributions... Mayor Carollo: OK, so the adjustments on that one is nine hundred and sixty-six thousand ($966,000) less? Mr. Marquez: Correct, correct. Mayor Carollo: That's because of the additional time that has gone by, is what you're saying? Mr. Marquez: I don't think it has to do with the additional time so much as the mathematical reverification of the numbers. And I have the budget people explain, the nuiances of that,. But from what I... Mayor Carollo: OK. I understand, OK. Mr. Marquez: OK. The... Commissioner Plummer: Where does the twenty million dollars ($20,000,000) departmental expenditure reduction come from? That's not outlined. Mr. Marquez: The twenty million ($20,000,000)? Where are you at, sir? Commissioner Plummer: Right page on the second page, the middle of the page. It says under One Time column, departmental... 49 December 23, 1996 Mr. Marquez: All right. Commissioner Plummer: doesn't say from where. ... expenditure reduction's twenty million ($20,000,000). But it Mr. Marquez: OK, Revenue Enhancement section, under page 12, Tab 5, of the Stierheim's report. Commissioner Plummer: All right. Twenty million two thirty-nine ($20,239,000) for one time. Twenty-one million eight seventy-seven ($21,877,000) . Commissioner Plummer: But they're not broken down. Mr. Marquez: They're broken down in great detail between pages 11 and 12. We've, on the first budget meeting, first discussion group that we had, we went item by item on this and we passed ordinances coming up to these annoucements. It's... There's a feed in and I'm summarizing information here, but it's the only workable way to give you a quick summary and I'll be more than happy to go into any individual detail. The... Taking that twenty million ($20,000,000) and that section - Revenue Enhancement, in the Stierheim's report he shows as recurring revenue the six million dollars ($6,000,000) receipt of cash under the Maritime lease item. I'm shifting that from recurring or annual into one time for better, because.... Mayor Carollo: Which one are you...? Mr. Marquez: I'm done in the bottom, Revenue Enhancements - Page two. I Mayor Carollo: Right, page two. Mr. Marquez: I'm shifting six million ($6,000,000) from the recurring column, or annual column into the One Time column. Because under the proposed Maritime Lease, that we'll probably modify, there was an up front payment of six million dollars ($6,000,000)... Mayor Carollo: Yeah, that was always an up front payment. That was not a recurring payment in the old lease. Mr. Marquez: Right. Mayor Carollo: In fact, this is why I did not use it in the proposal that I presented to the Commission. Because it was one time, and that was the old plan, we were still working on the new one. Mr. Marquez: Right. For purposes of discussion, I just shifted it between the two columns. Commissioner Plummer: Can I stop for one minute, Joe? Mayor Carollo: Yes. Commissioner Plummer: Maybe I'm getting over concerned. But you know, I am seeing all of the things that are taking place on the port and yet there are no interlocal agreements signed. The County just got forty-five million ($45,000,000) from the State of Florida. They're talking about going out to architects. Mayor Carollo: Commissioner, they will present something to us, I assure you. It's to their interest that they do. 50 December 23, 1996 Commissioner Plummer: I understand that, but let me tell you something. You know, I guess what I am trying to say, that if we were to go into a sale, of one hundred million dollars ($100,000,000) we're solvent, for this year anyhow. But I don't know those numbers and how can you sit here and ask me to know, without Commission policy, which way we're trying to move. Mayor Carollo: On what, on the Maritime land? Commissioner Plummer: Joe, on that or any other project that we're... Mayor Carollo: Well, this is why those six million dollars ($6,000,000) I never used it in my proposal. I mean, you could either... He's going down the line, you could either include it or just take it our of here and forget about it until we finalize it. Commissioner Plummer: Joe, what I'm saying is, this Commission has not taken an action. And I think there's got to be the time comes that this Commission is going to decide, hey, we want to talk sale or we want to talk lease? Mayor Carollo: They know we want to talk, J.L., and they're going to talk to us but what this Commission can't do is give anybody the impression that we're so anxious, that we're so much in need, which we're not, that we're going to take anything for it. And, you know, they're coming with a new proposal that's more in tuned to what we should be getting. Once we get that, then you know, we can deal with it. Commissioner Plummer: OK. Commissioner Gort: Mr. Mayor, my understanding, that's why I asked the question already, J.L. No matter what happens, we are guaranteed the six million. That's the minimum. There might be... Commissioner Plummer: No, you're not because they have not signed the interlocal. Commissioner Gort: My understanding is they need it... Commissioner Plummer: All right... Mayor Carollo: Commissioner, I've even had some pension boards that have been talking to me about doing something with this land. Commissioner Plummer: OK. Mayor Carollo: So, I mean we have a lot more options available to us. Commissioner Plummer: Just somewhere along the line, I think we've all got to sit down and understand what's going on. You and I can't talk because of Sunshine, but you can talk to the Manager and the Manager can talk to us. Mayor Carollo: Yeah, and believe me the minute that I have anything that's even somewhat solid, I will let the Manager know so he could explain it to each and every one of you. But sometime before the end of January, you know, it's fish or bait. Commissioner Plummer: OK, because they're still proceeding. 51 December 23, 1996 14. r Mr. Marquez: Mr. Mayor, I left the six million dollars ($6,000,000) in here as the worst case, if the Commission is uncomfortable with that, like the Mayor said you can take it out and we'll just reduce the fund balance that we end up with. The... As you can see I've taken out the ten million dollars ($10,000,000) for the solid waste fee because that's no longer a policy option. I've added back in one million six ($1,600,000) related to the MESA (Miami Sports and Exhibition authority) money because at minimum we'll be able to pull out twelve million six ($12,600,000) as opposed to the nine million two sixty-six ($9,266,000) which is in the Stierheim's plan. And the rest of the items are basically adjustment items that they have. Mayor Carollo: Well, can I state for the record something, Mr. Manager. We could probably pull out of MESA if we needed, but you know, and if the board would approve it of course, up to another half million dollars or more. But, we would prefer to leave that there as a cushion for other things that MESA might need to do with it at some time in the future. So, the figure they're using is a very conservative figure for MESA, twelve million six hundred and seventeen thousand ($12,617,000). Mr. Manager: OK. I want to bring your attention up to the departmental expenditure reductions from the Stierheim's report. Again, the twenty million ($20,000,000), the twenty thousand ($20,000), the ten million five ($10,500,000), were amounts that were in the Stierheim's report and I'm adjusting them here. I'm proposing that we keep the 13 NET (Neighborhood Enhancement Teams) offices open until such time we have a standardization of services and I can come back to the board in the future. I'm suggesting that we cancel, the ground maintenance item that was in the Stierheim's report because I don't think it's practical under the union contract that we have. I'm also proposing that we do not close the North Police Substation and that we delay the South closing until fiscal '98, and I'm showing the effect there. The reasons why... Commissioner Plummer: Woo, woo, stop. The Chief of Police has stood at this microphone and I'm not going to argue on the North station, 'cause that is a sacred thing to the people of that area. The Chief stood before this podium and said, closing the South station not only will save money but give you better service. Now, how do you justify keeping it open? Mr. Marquez: Well, we're keeping it open until fiscal '98 because we figure it will take until then to dispose of the property and we're afraid of keeping it vacant. Commissioner Plummer: Have you got the "For Sale" sign out now? I mean, you know, because look... Mayor Carollo: The south, yeah, the south station. Commissioner Plummer: The south. The south station. You know and I know by the time you go through these procedures, you're going to be talking nine months to a year. That's five million dollars hopefully that we're going to get for that parcel with the building and everything there. And yet, the Chief stands up there and says to you, I'll give you better service if you close it and save you money. I think it ought to be now. Mr. Marquez: We will put it on sale and... Commissioner Plummer: Well, excuse me, I am only one vote here, OK. But, I'm just saying, I don't know how you justify otherwise delaying. Mr. Marquez: We... Mayor Carollo: The south station is one that is different in looking at it from the north station because the south station we own. The north station we're leasing and even if we would close it 52 December 23, 1996 down, it's not going to he easy to find someone to take over that lease. But, you know, Mr. Manager, I'm going back to the MESA money. You've got to add another million seven hundred thousand ($1,700,000) because you had discounted one million seven hundred thousand ($1,700,000) for what you thought were previous commitments that were really more in the tune of six hundred and fifty to eight hundred thousand ($650,000 to $800,000), but we worked that out in other ways. So you have that one point seven million ($1,700,000) that you took out. You've got to put it back in. See, you've got another million seven hundred thousand ($1,700,000) here, that you weren't counting. i Commissioner Plummer: Mr. Manager, on adjustment of aviation details, it's my understanding j you're selling the helicopters, what's the adjustment? Police Chief Warshaw: That's operating expenses that as we phase out, we've got some additional expenses including our maintenance people and disposition of the parts, and the transfer of those pieces of equipment to Indian River County, probably 60 days. Maybe 90 days. Commissioner Plummer: OK. But, we're selling the helicopters? i Police Chief Warshaw: Yes, sir. Mr. Marquez: All right. Commissioner Plummer: So, that should he a plus item. I don't see that in here as a... f Mr. Marquez: The sale of the helicopter is part of the one time union enhancement recommendation that was in the Stierheim's report. That's part of the twenty million two thirty- nine ($20,239,000). 1 Commissioner Plummer: OK. How much did they show for the helicopters? i Police Chief Warshaw: Three hundred thousand ($300,000). Commissioner Plummer: That's cheap. You've got four, right? Commissioner Gort: Well, you sell it. Police Chief Warshaw: No, two of them we can't sell. The two that we can sell, we are... Commissioner Plummer: No, two you can't sell to anybody but governmental agencies. Police Chief Warshaw: Correct. The other two, are one hundred and fifty thousand dollars ($150,000) a piece, roughly. Commissioner Plummer: Well, but what about the other two that you can sell to another governmental agency? Police Chief Warshaw: No, no, no. You can't sell them. Those are the two that we either return to the federal government or with the federal government we are working with Indian River County who was next on line for this equipment. So, we're going to transfer that equipment to Indian River County. Commissioner Plummer: May I suggest to you, that you inquire. That you can sell them as long as they're not for passengers. Just look into it. 53 December 23, 1996 ON 0 Police Chief Warshaw: I will. Commissioner Plummer: I've heard that. It might be wrong. Mayor Carollo: I will name Commissioner Plummer into a committee of one, for the Commission to go out and look into it. Commissioner Plummer: Ah, right now... Commissioner Gort: Second the motion. Mayor Carollo: To go into it immediately. i f Commissioner Plummer: Right now... Commissioner Gort: Tomorrow. Commissioner Plummer: ... I might give you a gift certificate. Commissioner Gort: Good. Mayor Carollo: Well... Commissioner Gort: My understanding is... Mayor Carollo: That'll expire before you get to use it Commissioner. Commissioner Gort: Mr. Mayor, my understanding is from what you've stated now that the MESA total be three point three five one ($3,351,000). Mayor Carollo: Right. Commissioner Gort: That'll be a one time of twenty-nine five ninety ($29,590,000), when you add those things up. Mayor Carollo: It will be a one time of the full twelve million six hundred and seventeen thousand ($12,617,000). You know, we're counting the whole thing. Mr. Marquez: Mr. Mayor, as a running tenant through all this thing, we're trying to be conservative with our numbers. We'd rather be on the low side of revenues than on the high side of expenditures. Mayor Carollo: Well, and that's understandable. Commissioner Plummer: Question. Mr. Marquez: Yes, sir. Commissioner Plummer: Where is whatever you refer to as the fire fee? Mr. Marquez: The fire fee is not in here because we're dealing with one year. Mayor Carollo: Yeah, this is this fiscal year. Fire fee was to be looked upon for next fiscal year 54 December 23, 1996 r Commissioner Plummer: Oh, it's going to take that long? Commissioner Gort: Ninety-seven, ninety-eight, yeah. Mr. Marquez: Between... For January 3rd we have to submit to the State a one year plan. This Commission asked staff to come back with a one year plan for today. One thing that I do need to point out, that in the revenue enhancement recommendations, again that twenty million two thirty-nine ($20,239,000), we're talking... In there is the ten million ($10,000,000) worth of land sales. I will need to get clarification from the Commission, as to which parcels we're talking about if that item is to remain in here because the State Oversight Board would require that level of detail. Mayor Carollo: Sure. Mr. Manager, we recently had a land sale that was approved at the last Commission meeting, that was never, well, it was never contemplated to make land sale because of the fiscal emergency. It would have been done, regardless. And it was in the process from way back. That was for one hundred and twenty-five thousand dollars ($125,000) to the School Board. Do you have that included anywhere in here? Mr. Marquez: It can either be added as an item over and above the ten million ($10,000,000) or we can count that toward the ten million ($10,000,000)? Mayor Carollo: You should include that as a plus item. Mr. Marquez: Asa plus. Commissioner Plummer: Joe. What about the one fifty from the Water Department. Mayor Carollo: Beyond that now. Yeah, we should have another one, I don't know if he included it in here, the one hundred and fifty thousand ($150,0000) for the easement in Virginia Key to WASA (Water And Sewage Authority), the water department. Mr. Marquez: I thought we had, but... Mayor Carollo: I'm not sure if you do or not. Mr. Marquez: No, sir, we do not. Mayor Carollo: OK. Commissioner Plummer: Let me ask... Mr. Marquez: That will appear in the... Both those items will appear as new revenues cost items on the first page. Commissioner Plummer: Let me ask you a question. We have talked about and we continue to talk and do nothing. About the sale of properties, there are two properties in particular that we've not moved on, that I think we need to move on. One is the Miami Springs Golf Course and the second is the old police station on 12th Avenue. Mayor Carollo: The County is aware that we have an interest in those two properties. They will be getting back to us soon to discuss these properties. 1 know the School Board from what I was told, I don't know more of the details than you do, made us an offer for Miami Springs for a lot more than the City of Miami Springs almost two to one. Possibly the water department might still be interested in it to the tune of six million ($6,000,000) approximately). There are some other private interest that might be interested in it. 55 December 23, 1996 r Commissioner Plummer: Joe, that's my problem. You're saying to me, that the School Board made an offer to the City. Mayor Carollo: They talked to the City. I did not... Commissioner Plummer: They made an offer? Mayor Carollo: They were talking about a figure, J.L. Commissioner Plummer: Well, you see... Mayor Carollo: They were talking about a figure. Commissioner Plummer: All right, here... This is my problem. I am not aware that they made an offer to the City. And I think each member of this Commission has got to know... Mayor Carollo: This was told to us in a public meeting, in the last meeting. That's how I heard about it. Commissioner Plummer: I'll ask the question. Mayor Carollo: They were all here. We were all here. Commissioner Plummer: Mister... no. The School Board was talking. Never has it been said that the School Board has made an offer. They've not made an offer. Even though the Mayor has indicated to... Mayor Carollo: No, what I've indicated, J.L., is that they're talking about a figure to us. I don't believe we have an offer in hand, otherwise they'll be bringing it to us here. What we can do though, we cannot get into negotiations every meeting here. You know, I have no idea what the administration, I would imagine Mr. Rodriguez, is doing with the School Board anymore than you do or, I don't think any other member of the Commission. Once it gets to the point that we have a firm, written offer in hand, not just verbal going around in circles, then we deal with it. Now, you have had discussions where figures have been discussed, correct? Mr. Eduardo Rodriguez (Director Asset Management): Correct. Commissioner Plummer: Then why are we, the Commission not aware of that? Mr. Rodriguez: Commissioner, we discussed that at the last meeting. Commissioner Plummer: No, no, no. Not the offer. Mr. Rodriguez: No, it's not an offer at this point. The conversation about that, the exchanging of information... Commissioner Plummer: No, no. Excuse me. The only reason I said that was, the Mayor said that they had offered two and a half times more than we had heard from Miami Springs. Now... Mayor Carollo: No, I didn't say two and a half times more, Commissioner. Commissioner Plummer: What did you say? 56 December 23, 1996 r Mayor Carollo: I said approximately two times more. Commissioner Plummer: Two times more, OK. Mayor Carollo: Approximately, is what I've heard. That's WASA anyway, not the School Board. Commissioner Plummer: OK, Mr. Mayor. Mr. Mayor, let me just go on the record, all right. There are five members of this Commission. I'm telling you that when you have that information, you need to make it aware to all of the Commissioners. If there is an offer, I think everyone of us should know that there is an offer, there is negotiation. So that we are all well informed. So that we know what's going on. And if there are offers being made, we might think that we might want to accept those offers or we might not. And I don't want you to be going out and spinning your wheels. Mayor Carollo: Well... Mr. Marquez: Mr. Mayor. Mayor Carollo: Mr. Manager. Mr. Marquez: I've got to answer on behalf of the administration here. When formal offers are made, I will absolutely make my rounds to each and every Commissioner to discuss offers that are made. The administration is moving on multiple funds on multiple issues. There's discussions between ourselves and private concerns. Ourselves and other public entities continually going on. Now, I don't think we're going to be updating you on every discussion that we have, because that's physically impossible to do so. But whenever something becomes serious, and it's on the table, we will bring it up to each and everyone of you individually and then discuss it at the next Commission meeting. Commissioner Plummer: One. thing I'm trying to avoid, is we've have it in the past, where you've bring it to the table at the 12th hour and say if you don't vote for it, it's your fault. Don't do that to me. Mayor Carollo: Well, for the record, and let us get it out in the open to everyone's pleasure, what properties are the ones that we can look at to sell. I fully agree and concur that Miami Springs Golf Course is one that we do not need. It's not in the City limits. I think that we should be looking at a minimum of six million dollars ($6,000,000) as a starting point. Commissioner Plummer: I have no problem with that. Mayor Carollo: The other property that we can look upon is the old police station at 12th Avenue and I concur with you on that also. Commissioner Plummer: Just for the record, Mr. Mayor. I did not negotiate, I suggested to a member of the JMH (Jackson Memorial Hospital) Board that they ought to be considering that for administrative use. Mayor Carollo: That's good. That's a good idea. Commissioner Plummer: Without any idea of... And I've told them don't come back to me if you're interested, go to these two gentlemen who are the people who will negotiate with you. But I think that that property, the most... the most eligible person for that should be JMH, they need administrative land and, so that's why I said to one member of the board, you going to fail if you don't do it. So... 57 December 23, 1996 r Mayor Carollo: Well, they will be a good client that we'll possible have to buy that. But there are others that have an interest in it, including Dade County government for numerous other activities that they could use it for. So, I think that unless I hear different from the members of this Commission, those are the two key properties that this Commission would be looking upon to sell, not because we need to and not because we want to, at this point in time, 'cause we are establishing procedures that will bring in the funds to stabilize our deficit so that we won't have one now or in the future, but those are two properties that regarding of the financial condition of the City of Miami, we will normally look upon to sell. Mr. Marquez: Mr. Mayor, I'd just would add another piece of property, that's the police sub south station. Commissioner Plummer: I agree with that. Mayor Carollo: Yeah, the south substation that was discussed previously. Commissioner Plummer: Well, let's move on it. Mayor Carollo: So those are the three, and of course the FEC Bicentennial. You know, this Commission has to be flexible at whatever final offer we have, and then once we have one then we can discuss it and go from there. Vice Mayor Regalado: Mr. Mayor, how about the Bobby Maduro Stadium? We are deciding to close the facility but we're not deciding to sell the property, is that correct? Mayor Carollo: The Bobby Maduro Stadium could be one that's, and you're correct Commissioner that we forgot, that we could bring up and it's a possible property that we could sell. Mr. Marquez: Mr. Mayor... Mayor Carollo: Yes. Mr. Marquez: ... let me. If you would like, I can go... on December 12th I sent out to each one of the Commissioners those properties that we can consider for sale, and I go right down the list and see if I can get an "aye" or "nay" from each of the Commissioners. Commissioner Plummer: I really don't need to go down the list. What I need to, is to have the administration start either advertising or getting the appraisals so that we're in the process of trying to move as quickly as possible., Mr. Marquez: All right. Commissioner Plummer: We've got to have appraisals on any and all properties to sell. Mr. Marquez: All right, with the understanding of the Commission, we'll be moving on four pieces of property for sale. And they will be the Miami Springs Golf Course, the Municipal Justice Building on 12th Avenue, the Bobby Maduro Stadium and the Police South Sub station. Commissioner Gort: To my understanding there are some individuals that might have interest in the Artime property. Mayor Carollo: Yeah. 58 December 23, 1996 s s,Vk Commissioner Plummer: You're talking about all the... the entire... Mayor Carollo: Yeah, the entire.... yeah. Commissioner Gort: You can separate them. You can have the theater, there are certain groups that might be interested in that, in the Arts. And then you've got the other building. Mayor Carollo: Yeah. Well, we should do it as a whole package. i Commissioner Plummer: That's good. Mayor Carollo: We -should do it as a whole package. Commissioner Plummer: Good. Mayor Carollo: That's the other one we're closing down, that we own. Mr. Marquez: All right, that's both properties of the Manuel Artime. Mayor Carollo: Yeah. Commissioner Plummer: Yeah, it's the auditorium as well as the office structure. Mayor Carollo: Yeah, both. iCommissioner Plummer: Yeap. i Mr. Marquez: All right. We will move on five pieces of property. Commissioner Plummer: Get them back on the tax roll. Mayor Carollo: All right, can we move forward with your presentation Mr. Manager, before we interrupted you? Mr. Marquez: No problem. All right, we can go back up to the top page now. Again, the breakdown of the deficit is at $68,000,000. That's the first section of the page here. The funding solution matrix we just went down, that's all of the items presented in the Stierheim's report in the Tab 5, as modified by the page prior. Then, we're talking in terms of new revenues and cost savings, not in the strategic financing plan. Before I go on, there are two items that I have to add to this list. That's the one hundred and fifty thousand dollar ($150,000) easement that we got from the County and the one hundred and twenty-five thousand ($125,000) land sale that we had. These are items that the Commission either has enacted or has authorized us to proceed on. Well, basically they have all... These are all items that have had Commission action of one form or another. Out of these items, six point one million ($6,100,000) is recurring from a year to year basis. And we have nine point five million dollars ($9,500,000) one time. This can be used as a substitute for all intent and purposes for the ten million dollar ($10,000,000) vetoing or disapproval of the Solid Waste fee. i Commissioner Plummer: Quit stuttering. Mr. Marquez: I'm .... , Mayor Carollo: Mr. Manager, let's go down the list... r i F 59 December 23, 1996 r fs: Mr. Marquez: Yes, sir. Mayor Carollo: ... of things here that I haven't seen in there. For instance, the Cops For Technology grant for three million ($3,000,000) for the computers, that we will be receiving. I don't see it in here. Mr. Marquez: I listed that to be a 1998 item... Mayor Carollo: No, that was a 1997 budget. Chief? Police Chief Warshaw: Mayor, I just questioned the Finance Director. I understand he is showing that in '98. You're right, that that's money that will probably come in this fiscal year. Mayor Carollo: Yeah. Police Chief'Warshaw: I am not exactly sure why that... Mr. Marquez: All right, we can show the three million ($3,000,000) as a one time item. Mayor Carollo: Yeah, one time for '97, of course. Commissioner Plummer: Yeah, but isn't that monies that are limited for what you can use it for? Mr. Marquez: It is... Mayor Carollo: Of course, Commissioner. It's... we got a grant for them for half the money to buy computers for the police department. Those hand held computers hopefully are going to save thousand of man-hours and we had to pay... we were committed to pay the other three million ($3,000,000). So, this three million ($3,000,000) will go toward the three million ($3,000,000) that we had to pay that will come right out the sixty-eight million dollars ($68,000,000) deficit that we have. Police Chief Warshaw: It's a waiver of the match. Mayor Carollo: Yeah. Commissioner Plummer: Was it three million dollars in the original budget? Mr. Marquez: The three million ($3,000,000) is part of the... Mayor Carollo: It was in the original budget that we had to pay. Police Chief Warshaw: It's in the matrix. Commissioner Plummer: As part of your hundred million dollars, ($100,000,000) your three million ($3,000,000) was there? Mayor Carollo: No, sir. No, sir. Police Chief Warshaw: No, no. It's... Mr. Marquez: May I? May I? The three million is part in parcel of the one time deficit number that is in Merrett Stierheim's report. It was to be provided for. The federal government is now providing the cash for it. Thereby, freeing up the cash that we can call it as one time revenues. 60 December 23, 1996 err; 1: Commissioner Plummer: But it was not a... it was not a negative number before. Police Chief Warshaw: Right, Commissioner I'll explain it to you. It's not a negative number in this year's general fund budget. But it was a commitment on behalf of the City that is part of the sixty-eight million dollar ($68,000,000) deficit. Commissioner Plummer: I'm sorry, would you repeat that? Police Chief Warshaw: OK. The three million dollar ($3,000,000) number is not part of the current fiscal year general fund budget. But it's still an obligation of the City that was shown in the sixty-eight million dollar ($68,000,000) deficit, by getting the waiver from the federal government that relieves three million dollars ($3,000,000) from the deficit. Commissioner Plummer: But the enhancement of three million dollars ($3,000,000) did not address towards the deficit, is what I'm saying. Police Chief Warshaw: It does. It's part of the sixty-eight million dollar ($68,000,000) deficit. Mayor Carollo: It does, J.L., it does. Commissioner Gort: It's part of the expenses. Mayor Carollo: If we didn't have those three million ($3,000,000), to pay, we will have sixty- five million ($65,000,000), instead of sixty-eight million ($68,000,000). Commissioner Plummer: I don't agree with you, but go ahead. OK. Mayor Carollo: Those three million ($3,000,000) that you don't have here Mr. Manager, did you cover the one million ($1,000,000) that we got from Bedminster? Commissioner Plummer: Yeah, bottom line. Mayor Carollo: OK, the capital improvement projects, self-insurance bond one point two million ($1,200,000). Have you made your mind up on that or not? Mr. Marquez: What I have shown here in that regard, is two items. The... I show expenses going out this year. Two million dollars ($2,000,000) for that safety program, basically a... Mayor Carollo: Well, this is not a safety program. This is savings from capital improvement projects and self-insurance bonds. Mr. Marquez: Oh. Mayor Carollo: You're talking about the best practice claims now. Mr. Marquez: No, sir. I haven't made up my mind on that item. Mayor Carollo: OK, that's why we need with that you know... for another day. On the best practice claims management, that's the other one that you had a question on. Mr. Marquez: On the best practice claims management, I've asked staff to chart out what that would entail and when the revenue savings would come in. What it turns out, is that you incur expenses this year, and I'm showing that under the next section, Risk Management Staff... 61 December 23, 1996 Mayor Carollo: Yeah. Two million ($2,000,000), you're showing. Mr. Marquez: ... and Risk Management Safety Training items. And then also the two million dollars ($2,000,000) safety program costs. Those are going to be cash outlays this year so that in future years we will reap the savings, a lowering of our alloted self-insurance liability. We fully anticipate it to be a... over time a net savings in cash outlays and definitely a lowering of our liability out into the future. Mayor Carollo: OK, so you're not going to count that million dollars ($1,000,000) this year then, at all. Mr. Marquez: Correct. . Mayor Carollo: OK. Commissioner Plummer: There are companies, Mr. Manager, I am sure you're aware, in the private sector that do just that. Mr. Marquez: Yes, sir. Commissioner Plummer: OK. So that you can get a bid from them rather than trying to do it in- house. Mayor Carollo: The special events contributions, donations, etcetera that we already made resolution to save one million dollars ($1,000,000), did you have that included in here? Mr. Marquez: No, sir. Mayor Carollo: OK, there's another million. Fire inspection fee approximately nine hundred and seventy thousand dollars ($970,000). Do we have that included here? Mr. Marquez: We were under the impression that that was part of the Stierheim's report, and thereby included in the funding matrix. Mayor Carollo: OK, we'll go over and make sure if we had it included or not. The other revenues that we were looking to get, I got five point... Five million three hundred and ten thousand one dollars ($5,310,001). I'll go through the list of what I have. I don't know how you broke it down in here. I think you have some of it in here, but I'm not sure if you got all of it. How I came to that was, Building and Zoning fees etctera, three hundred and three thousand eight hundred and forty ($303,840). Mr. Marquez: I included all those as part of the funding matrix adjustments. Mayor Carollo: OK, you included all those. Did you include one time Parrot Jungle reimbursement for the RFP (Request For Proposal) of thirty thousand ($30,000)? Mr. Marquez: That was part of the Stierheim task force Mayor Carollo: All right. How about the yeah, the receipts from past sale motorpool, three hundred thousand ($300,000). Mr. Marquez: That's in there. 62 December 23, 1996 0 [A Mayor Carollo: That was, OK. And, police department savings of one million dollars ($1,000,000) to the Chief had committed to before. Mr. Marquez: That's there. Mayor Carollo: Is it there? What page is that in, so that I could be sure I could see it? Mr. Marquez: No, sir. I take that back. I was looking at the Cops funding savings match. Mayor Carollo: The Cops funding savings match of... Commissioner Plummer: A million. Mayor Carollo: A million ($1,000,000). Yeah, that's what I figure. That's not there either. So, you could put another million dollars ($1,000,000) there. Commissioner Plummer: Wait a minute, wait a minute. Mr. Manager, who's doing your numbers? Mr. Marquez: Sir, we're reviewing the numbers I'm presenting here and I'm taking this as instructions from the Commission. Commissioner Plummer: Yeah, but these are things that are in the matrix, the Mayor is asking about that you don't have. Who's doing... Mayor Carollo: No, no, no Commissioner. These are basically old, new numbers which I presented in my plan. See, when I presented the proposal that I made for us to consider, two- thirds of the numbers, the savings or recurring revenues, were coming from... or new revenues were coming from the matrix, the Stierheim's plan that we did with him. One-third with new dollars that he didn't have there. Commissioner Plummer: I understand that. Mayor Carollo: So this is why I see that he could have missed them. This is why we need a little more time than today. Commissioner Plummer: But he had your proposal. Am I correct? Mayor Carollo: He did, Commissioner. But maybe the wording on some of this was... You know, it's hard to put together so many numbers, so much wording. I mean, you're looking at million and million of dollars of revenues. You're looking at an administration that's so thin, that it's a wonder that he hasn't written us his pink slip already and said thank you, but no thank you. I mean, there is so much that you can expect from a Manager. Hopefully, he would do like I recommended, before we hired him and after we hired him, that he better go out and get some help. Commissioner Plummer: OK. Mr. Marquez: And I provide for that in here also. Mayor Carollo: Yeah. The long term contract for the phone services... Mr. Marquez: That's not in here because I don't have any documentation for that. 63 December 23, 1996 Ii7 Mayor Carollo: OK, well we'll get that for you. It's in the... you know, I have a copy in my office, we can get that for you. The pawn shop fee, I see one hundred and eighty-five thousand ($185,000) but we were working on two hundred and sixteen thousand five hundred ($216,500). Police Chief Warshaw: The reason for that, Mr. Mayor, is the number you had was for a full fiscal year. We adjusted it downward based upon the time you passed it and the 30 day notice we need to send the notifications out to the pawn shops. We've estimated... Mayor Carollo: True, but that fee should be... it should be the same, the amount that the pay for the full fiscal year. It should be the fee for the fiscal year. Police Chief Warshaw: All right, the fee is... Commissioner Plummer: Part of it was for inspections beyond the initial fee. Police Chief Warshaw: The fee is the same, but the dollar fifty ($1.50) per pawn card, we use the figure of 41 weeks. That's based on a readjustment for the fiscal year to give us for this year, one hundred and eighty-four thousand five hundred ($184,500). Commissioner Plummer: How many pawn shops do we have? Police Chief Warshaw: One hundred and fifty, give or take. Commissioner Plummer: In the City? Police Chief Warshaw: Yes. Mayor Carollo: It's the biggest growing industry that we have down here. Commissioner Plummer: Must be a very, very good item. Mayor Carollo: OK, I don't think I've missed anything else right now. Mr. Marquez: Other items adjustments. What I've got here is changes to this thing, is the police savings of one million dollars ($1,000,000). Mayor Carollo: Right. Mr. Marquez: Some adjustments for special donation costs that the Commission is foregoing. Mayor Carollo: That's another million ($1,000,000) Mr. Marquez: You show it as a million ($1,000,000). There is some three hundred thousand ($300,000) in the plan and I'll figure the proper amount between the two. It's between seven hundred thousand ($700,000) and one million ($1,000,000). The hundred and fifty thousand ($150,000) easement... Mayor Carollo: Well, but when you make your calculations, make them based upon that we voted across the board to cut everything out, no matter who it is or what it is. Mr. Marquez: I understand that, but in the Stierheim's plan if I recall right, they were going to charge certain of these groups three hundred thousand dollars ($300,000) over the course of the year. 64 December 23, 1996 Mayor Carollo: Well, yeah. Go back... Mr. Marquez: So that will have to be taken out of the Stierheim plan. Mayor Carollo: Yeah, go back to it and double check. But I think that based on the what they had calculated it was still about one million dollars ($1,000,000). So check the figures. Mr. Marquez: We'll absolutely. One fifty ($150,00)) easement, one hundred twenty-five thousand ($125,000) sale. The three million dollar ($3,000,000) technology grant to be shown as a 1997 item. And then I am going to check with the budget department about the one point two million dollar ($1,200,000) budgetary item, that's self -insured. Mayor Carollo: Yeah, an additional one million dollars ($1,000,000) savings for the police. Mr. Marquez: I've counted that one. Mayor Carollo: Yeah, count beginning January 1st, which I will give you the documentation for us to go ahead and sign a contract. Twenty thousand seven hundred and sixty-nine dollars ($20,769) for phone service that we'll save. And you're looking at another million seven hundred thousand ($1,700,000) that you weren't counting from the Sports Authority here. Mr. Marquez: Right. We'll make those adjustments accordingly. Mayor Carollo: OK. Anything that anybody else here has that would like to bring up to the Manager, either in adding or deleting? Commissioner Plummer: We'll be back tomorrow night for the final, hopefully. Mayor Carollo: Well, let's get it clear. When we meet again, we have to finalize this. Commissioner Plummer: Fine with me. Mayor Carollo: So, Mr. Manager, do you feel that we have enough,time to finalize this by tomorrow night? Vice Mayor Regalado: Can we do this in the morning, not possible? Commissioner Gort: Joe, could you... Mayor Carollo: I don't think we'll have the time, Commissioner. Commissioner Plummer: I don't so either. He's got to go back and rework all these documents. Mr. Marquez: I believe we'll be ready to have something before you for finalization assuming that the City Attorney can write a resolution adopting a plan as... in form substantial. In substantive form. Mayor Carollo: Yeah, now what... can you do it, Mr. City Attorney? What I want to say to you is the following. Two figures that you have, one for six million ($6,000,000) for the FEC Bicentennial, one for ten million ($10,000,000) for selling properties. Whatever numbers you finally give us, if we do not need those numbers and I don't believe we'll need them because in the calculations that I had made before, we didn't need those numbers. Then, let's not include them. I£ we can resolve the deficit, it's basically from the plan that I have presented for discussion here, it's being followed, just about all of it with the exception of one item which was 65 December 23, 1996 the Self-insurance Best practice. I believe that we could balance the books, certainly without counting the six million ($6,000,000), that you're counting right now from FEC Bicentennial and probably without selling any land. We're still moving ahead on those. Those would be a plus. We could add it as a plus. But I'd like to balance the books without getting into any of those. Commissioner Plummer: Well, and I just hope that the Manager, I'm sure he will. But, I just want to remind him. That on the sale of any of this land, even to a governmental agency, there has to be an annual contribution involved with that sale. I think that's very, very important. And by the way, Mr. Manager, I had a nice conversation with Ron Silver who is going to work with this City extensively on the tax exempt property especially in the area of the companies that are for profit and I would like to say thank you in advance, that we'll be there knocking on the doors and asking your help and your direction on getting that done because that is going to be a source of income. Commissioner Gort: Joe, let me ask you a question. About what time you think you can have that ready by? Mr. Manager: Six o'clock tomorrow. Commissioner Plummer: Well... Commissioner Gort: You're going to have your full... Mr. Marquez: Sir, I may or may not. Commissioner Plummer: You can't do it. Mr. Marquez: I just don't know. I've got to go and research with staff. If we can, I think. If you want to try meeting at three o'clock, we'll set a time and then I'll... Commissioner Plummer: Then, I've got a problem. Mr. Marquez: ... we'll ask for a deferral, if I'm not ready. Mayor Carollo: Well... Mr. Marquez: I don't think it's going to... Chief? Mayor Carollo: ... if we meet at six, I think we'll be ready, you know, be done here no more than an hour. Commissioner Gort: Yeah, let me ask you a question, I don't want to ruin tomorrow's day for anybody. My understanding when I'm reading this, which you're going to bring back to this Commission, is going to be the changes that we've talked about today. I don't see any other major changes taking place. Mr. Marquez: Now, and I think that's why I can commit to the three o'clock. There are a couple of items here that I need, to check out, such as the one point two million dollars ($1,200,000), self insurance budgetary item. Commissioner Gort: Mr. Mayor, let me tell you what I'll do. You give me a copy of all the work you do, I'll take it with me. If you have any major problem, I'll fly back in or I'll call you back in. I'm not going to put everybody out tomorrow to do this just because of me. 66 December 23, 1996 Commissioner Plummer: And you then... what you're saying is don't meet tomorrow? Commissioner Gort: Yes. Commissioner Plummer: OK, that's fine with me. Mayor Carollo: All right, and if... Commissioner Gort: If it's not going through all these documents, the changes are minor and I'm in accordance with most of it, unless there is a major change I don't see... Mayor Carollo: Of course. Commissioner Gort:... and if there is... Mayor Carollo: And then when you come back, when you come back, Commissioner, you could just for the record, next time we meet. Give your affirmative vote to the plan to the Clerk, so you could be included as being in favor. Commissioner Gort: Well, I will send a letter and a fax stating... that I do agree with. And I don't see any major problems in the changes that we talked about today. Mayor Carollo: That's fine. Commissioner Gort: Anything we talked about today is for improvement. Mayor Carollo: Now, the rest of us when can we then meet? Can we meet... Commissioner Plummer: Six o'clock tomorrow is fine with me. Commissioner Gort: No, they can't meet six. If it's six o'clock, I'll be here. Commissioner Plummer: Oh, I'm sorry, the rest of us he said, not you. Commissioner Gort: For a lot of people, tomorrow is sacred. That's at three o'clock. Commissioner Plummer: Joe, let's talk about it Thursday or Friday? Commissioner Gort: You've got all this roasting pork taking place. Mayor Carollo: Do you all want to meet on the 27th Friday or on Monday, the 30th? Vice Mayor Regalado: Twenty-seventh is best. Mayor Carollo: Twenty -seventy? Vice Mayor Regalado; Yes. Commissioner Plummer: Monday, the 30th. Mayor Carollo: Everybody here that say on the 27th? It figures, it figures. Twenty-seventh Friday, would that be possible, or do your clients make prearrangement Commissioner Plummer: Not that far in advance they don't. 67 December 23, 1996 cx, r Mayor Carollo: ... contracts with you? Well, I figure, you know... you're the only guy in town that'll make a... Commissioner Plummer: Well, let's... what time of the day? Mayor Carollo: Morning. Vice Mayor Regalado: Morning, Mayor Carollo: Morning. OK, let's say ten in the morning. Commissioner Plummer: As far as I... that's a Monday? Mayor Carollo: No, Friday. Commissioner Plummer: Friday. OK, all right. Mr. Marquez: Mr. Mayor? Mayor Carollo: Yes, sir. Mr. Marquez: Right off the bat, in the Stierheim's plan... no, let me... Before I ask for guidance, I just want to make sure that the Commissioner understands that you're... if we go with this scheme plan here, adopting what's in Tab 5, of the Stierheim report as modified by these two sheets of paper. That's important to put on the record because there is a lot of line items in here. The second thing where I need the guidance is the Stierheim plan contemplated a fund balance of more or less, seven million dollars ($7,000,000) at the end of all the revenue enhancements and expenditure reductions. And that seven million dollars was to be applied towards fund balances and other reserves that are necessary by the City. When you said earlier to the extent that we can, not to include ten million dollars ($10,000,000) of land... Mayor Carollo: To the extent that we can. Mr. Marquez: ... well, that's what, to zero or balancing to the seven million dollar ($7,000,000) number? Mayor Carollo: No, balance it to zero. Mr. Marque: OK. Mayor Carollo: Balance to zero now, anything that you will want to include for the other seven million ($7,000,000) as a surplus. And obviously, if we can balance to zero and not include ten million ($10,000,000), or more that we can sell those two properties for, because I'll tell you right now, Miami Springs and the 12th Avenue old police station, we'll get a lot more than ten million ($10,000,000) for both of them together. We might probably get ten million alone, if not more, for the old police station by itself. Mr. Marquez: So, with your permission I'll balance to zero. Below on the report, I'll state that even though we're at zero, we're anticipating on selling five pieces of property and we are anticipating on entering into a favorable lease agreement for... Mayor Carollo: Yeah. December 23, 1996 [A Mr. Marquez:... the FEC property or even selling that. Mayor Carollo: .And I think that we should stipulate, Mr. Manager, that those would have been the five pieces of property that this Commission would most likely have sold regardless of the situation or not. Mr. Marquez: OK. Commissioner Plummer: Joe, let me ask for a .reconsideration on the date? Mayor Carollo: On the date? Commissioner Plummer: Yeah. Commissioner Plummer: Can we make it on Monday? Let's make it on Monday, like eleven o'clock? Vice Mayor Regalado: If it's in the morning, I don't have any problem. Commissioner Plummer: Let's make it Monday at eleven. Mayor Carollo: Monday at eleven? Commissioner Plummer: Yeah. Mayor Carollo: Monday at eleven it is. So, we will then finalize the budget for this fiscal year, next Monday, December the 30th at eleven a.m. Commissioner Plummer: Well, wait a minute. You said finalize the budget? Mayor Carollo: Yeah, finalize the proposal... Commissioner Plummer: Proposal, OK. OK. Mayor Carollo:... that we're going to give the state. Yeah, out side of it. Commissioner Plummer: Merry Christmas. Mayor Carollo: Merry Christmas to everybody. Vice Mayor Regalado: Mr. Mayor, I have a... Don't go, don't go. I have a pocket item here... Commissioner Plummer: No, no. To hell you say. Vice Mayor Regalado: OK, OK. We'll defer that. Commissioner Plummer: What? Vice Mayor Regalado: It's a special. It's a special Commission. Commissioner Plummer: Pick it up, I was kidding you. Mayor Carollo: Merry Christmas everyone. 69 December 23, 1996 rj Vice Mayor Regalado: OK. Can we do that? Can we do a pocket item? Can we or can we not? Mayor Carollo: Not in a special meeting. Vice Mayor Regalado: OK. THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION, THE MEETING WAS ADJOURNED AT 2:36 P.M. JOE CAROLLO MAYOR ATTEST: Walter J. Foeman CITY CLERK Maria J. Argudin ASSISTANT CITY CLERK 0 � Oa60QP_OQl,14C �7 0 70 December 23, 1996