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HomeMy WebLinkAboutCC 1996-12-30 Minutes01 OF MIAMI KAI. � mom 1At:ORl"fills tT If PREPARED BY THE OFFICE OF THE CITY CLERK CITY MALL WALTER FOMW CITY CLERK r ITEM NO. 2. 3. 4. INDEX MINUTES OF SPECIAL MEETING December 30,1996 SUBJECT LEGISLATION BRIEFLY DISCUSS / TABLE TO LATER IN DISCUSSION SESSION THE RESCHEDULING OF THE JANUARY 12/30/96 9, 1997 CITY COMMISSION MEETING— SEE LABEL 4. VICE MAYOR RECALADO SPONSORS RESOLUTION R 96-948 URGING FEDERAL GOVERNMENT TO RECONSIDER 12/30/96 PRESIDENT CLINTON'S EXECUTIVE ORDER REGARDING REPATRIATING ALL CUBANS ENTERING ILLEGALLY EGAT LY — FURTHER URGING THE CLINTON ADMINISTRATION TO DIRECT IMMIGRATION AND NATURALIZATION SERVICES OFFICIALS TO EVALUATE EACH CASE INDIVIDUALLY UNDER EXISTING CUBAN ADJUSTMENT ACT OF 1966 PROVISIONS PRIOR TO MASS DEPORTATIONS. A. DISCUSS / APPROVE PROPOSED FINANCIAL R 96-949 RECOVERY PLAN FOR FY 196-197 (THE 1997 12/30/96 PLAN) — AUTHORIZE CITY MANAGER TO SUBMIT "PLAN" TO FINANCIAL EMERGENCY OVERSIGHT BOARD (F.E.O.B.) BY 1/3/97 — FURTHER COMMIT TO IMPLEMENT ''PLAN'' WITHIN 45 DAYS OF APPROVAL BY F.E.O.B. B. DIRECT CITY MANAGER: BY VICE MAYOR REGALADO TO PROVIDE COMMISSIONERS, ON A MONTHLY BASIS, WITH A DETAILED REPORT OF REVENUES AND EXPENDITURES. C. DIRECT CITY MANAGER: BY MAYOR CAROLLO TO INCLUDE — ONLY IF NEEDED —$ 6 MILLION OF LAND SALES AND LEASE PAYMENTS AS REVENUE AND LIST LAND SALE PROFITS AS RESERVE FUNDS. DISCUSS / RESCHEDULE JANUARY 9, 1997 R 96-950 COMMISSION MEETING TO JANUARY 16, 12/30/96 1997 — SEE LABEL 1. PAGE NO. 1 2-4 4-15 16-17 r MINUTES OF SPECIAL MEETING OF THE CITY COMMISSION OF MIAMI, FLORIDA On the 30th 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 11:26 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 J. L. Plummer, Jr. Commissioner Humberto Hernandez ALSO PRESENT: ABSENT: Edward Marquez, City Manager A. Quinn Jones, III, City Attorney Walter J. Foeman, City Clerk Maria J. Argudin, Assistant City Clerk Commissioner Wifredo Gort An invocation was delivered by Vice Mayor Regalado who then led those present in a pledge of allegiance to the flag. ---------------------------------------------------------------------------------------------------------------- 1. BRIEFLY DISCUSS / TABLE TO LATER IN SESSION THE RESCHEDULING OF THE JANUARY 9, 1997 CITY COMMISSION MEETING-- SEE LABEL 4. Mayor Carollo: Mr. Manager before we begin, several of us are not going to be available for the meeting of the ninth of January. So we need to change that meeting. If I could ask the different members of the Commission if they could look at their calendars and we will deal with this at the end of today's meeting, so that we can choose another date possibly, the following week. Commissioner Plummer: I'll have to let you know. Mayor Carollo: Yeah. Let's... we'll take it up at the end of the day. Just check with your offices so we could take it up at the end of the day. 1 December 30, 1996 �i ---------------------------------------------------------------------------------------------------------------- 2. VICE MAYOR REGALADO SPONSORS RESOLUTION URGING FEDERAL GOVERNMENT TO RECONSIDER PRESIDENT CLINTON'S EXECUTIVE ORDER REGARDING REPATRIATING ALL CUBANS ENTERING ILLEGALLY -- FURTHER URGING THE CLINTON ADMINISTRATION TO DIRECT IMMIGRATION AND NATURALIZATION SERVICES OFFICIALS TO EVALUATE EACH CASE INDIVIDUALLY UNDER EXISTING CUBAN ADJUSTMENT ACT OF 1966 PROVISIONS PRIOR TO MASS DEPORTATIONS. ---------------------------------------------------------------------------------------------------------------- Mayor Carollo: I believe the first item in the agenda is an item that Commissioner Regalado asked to be put in the agenda. Vice Mayor Regalado: Mr. Mayor. Mayor Carollo: Go ahead Commissioner. Vice Mayor Regalado: This item has to do with immigration policy in the United States. We all know that the City of Miami or Dade County does not deal with foreign policy. But, when an issue has to do with the tranquility of one's City, it's the City's responsibility to take action or at least go on record that we are in disagreement with the federal government. That is why I have this Commission to officially communicate to the federal government that the City of Miami wishes to protest the recent announced policy of deporting Cubans when they arrive illegally in the United States. The reason I'm doing this is because last week there was a very tense situation in Krome Detention Center with the Metro Police. Now, if this policy were to be implemented, I am sure that we will have demonstrations within the City of Miami and that the resources of the City will have to be utilized to deal with this issue. So, in order that the people of Miami understand that this government is on their side, that there is a law called the "Cuban Adjustment Act," that protects as of now, the Cubans that arrive in the United States and are being persecuted by the regime. We as a Commission are asking the members of this Commission to go on record and ask the federal government to deal case by case and not have a blanket policy that even violates the law passed by Congress in 1966. This is why I brought this item to the Commission because I think, it at least would gaurantee the people of Miami that in the City government we understand the situation that they have. So that's the nature of the resolution. Just asking the federal government to take case by case in the deportation of Cuban nationals when they decided to go ahead with this policy which has been announced already by the White House and by the Department of State, the United States. Commissioner Plummer: A question. Mayor Carollo: There's a question. Commissioner Plummer: You said the ones that are arriving legally? That was your... Vice Mayor Regalado: The term... Commissioner Plummer: If they're here legally, what is the problem? Vice Mayor Regalado: Illegally. T 2 December 30, 1996: J Commissioner Plummer: Oh, illegally. Vice Mayor Regalado; Yes. Commissioner Plummer: I'm sorry. Vice Mayor Regalado: The terms... The reason of this policy J.L., is, there is a law passed by Congress, presented by President Johnson in 1966 called "The Cuban Adjustment Act." Now, if you're a Cuban national and you come, say you cross the border from Mexico, or you just come directly to the beaches of South Florida from Cuba, that law protects you. And after one year and one day, you will become a resident a permanent resident of the United States. That law is still, is in effect but, the new policy of the Clinton Administration is that if you come and you arrive directly from Cuba on American soil, you will be immediately deported back to Cuba as other people are right now when they are caught by Coast Guard cutters in the straight of Florida. So, what we're seeing here is an executive order that has been issued although there is a law also that protects these kinds of the people that arrive from Cuba. And, as you may have heard there was a hunger strike that went on outside the Krome Detention center. There was a huge crowd that gathered for several days. And there was a situation in which there was some kind of confrontation between the police and the people gathered there. So, as a gesture, I think that we should ask the federal government to consider case by case, which if one... We're talking of a criminal, send them back. But if we're talking to a person that is rightfully a refugee that at least they would consider to give them political asylum. So what we're asking is just simple - stick to the law of the land and not use the executive order of the president to send everybody back and create a problem because after all, the Cuban government is the same that it was 20 years ago or 5 years ago. Commissioner Plummer: I have no problem in seconding the motion. As far as I'm concerned, I thought and had always thought that in fact each one of these would be taken immediately to Krome and they would be given a case by case basis as to whether or not they should stay or they should not. And I don't see anything wrong with that. Vice Mayor Regalado: There was the case before J.L., but it is not now. And this could create a situation of course of rallies and protests once that the first group will be deported back to Cuba. Commissioner Plummer: Well, I think it's very, very critical how you word you concern of this community to the FEDs, OK. And being very careful in your wording, I have no problem seconding the motion. Mayor Carollo: There is a motion, there is a second. All in favor signify by saying "aye." The Commission (Collectively): Aye. 3 December 30, 1996 rA M)� The following resolution was introduced by Vice Mayor Regalado, who moved its adoption: RESOLUTION NO.96-948 A RESOLUTION OF THE MIAMI CITY COMMISSION URGING THE CLINTON ADMINISTRATION TO RECONSIDER THE UNITED STATES IMMIGRATION AND NATURALIZATION SERVICE'S POLICY OF DEPORTING ALL CUBAN NATIONALS, INCLUDING THOSE CLAIMING POLITICAL ASYLUM IN THE UNITED STATES, WHO ILLEGALLY ENTER INTO THE UNITED STATES' TERRITORY AFTER DECEMBER 6, 1996, AND TO CONTINUE EVALUATING THE SITUATION OF THOSE CLAIMING POLITICAL ASYLUM, ON A CASE -BY - CASE BASIS, IN ACCORDANCE WITH THE CUBAN ADJUSTMENT ACT OF 1996; DIRECTING THE CITY CLERK TO TRANSMIT A COPY OF THIS RESOLUTION TO THE WHITE HOUSE CHIEF OF STAFF AND DIRECTOR OF THE IMMIGRATION AND NATURALIZATION SERVICE. (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 Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: Commissioner Wifredo Gort ---------------------------------------------------------------------------------------------------------------- 3. (A)DISCUSS / APPROVE PROPOSED FINANCIAL RECOVERY PLAN FOR FY '96-'97 (THE 1997 PLAN) -- AUTHORIZE CITY MANAGER TO SUBMIT "PLAN" TO FINANCIAL EMERGENCY OVERSIGHT BOARD (F.E.O.B.) BY 1/3/97 -- FURTHER COMMIT TO IMPLEMENT "PLAN" WITHIN 45 DAYS OF APPROVAL BY F.E.O.B. (B)DIRECT CITY MANAGER: BY VICE MAYOR REGALADO TO PROVIDE COMMISSIONERS, ON A MONTHLY BASIS, WITH A DETAILED REPORT OF REVENUES AND EXPENDITURES. (C)DIRECT CITY MANAGER: BY MAYOR CAROLLO TO INCLUDE - ONLY IF NEEDED - $ 6 MILLION OF LAND SALES AND LEASE PAYMENTS AS REVENUE AND LIST LAND SALE PROFITS AS RESERVE FUNDS. Mayor Carollo: All right Mr. Manager, we're now on the next item on the agenda. If we could proceed. Mr. Edward Marquez (City Manager): Mr. Manager, Commissioners. In your packet you have a draft of the 1997 Financial Recovery Plan, as it evolves to date. You have a resolution that will, 4 December 30, 1996 al [i if you enact will adopt this plan and direct this City Manager to finalize a plan and submit it to the State's Oversight Board on, no later than January 3rd, of 1997. The plan that's before you complies with the requirements of the State's Financial Oversight Board, which is outlined in the Intergovernmental Cooperation agreement. It uses the report that was submitted by the former City Manager, Merrett Stierheim as a base line. It also provides that at least 60 percent of the recurring deficit number is covered by current revenues or expense reductions. And, it starts to address some of the operational managerial shortcomings as we're specified in the Stierheim's report. Self -Insurance Claims Adjusters being an example of that. If you go to the summary, which is the Exhibit I, I'll just walk you though the overview of it. Exhibit I, starts off with the breakdown of deficits per the strategic plan. This is lifted right out of the Stierheim's report. You can see that the deficit of sixty-eight million dollars ($68,000,000) is made up of beginning carry over deficit of nineteen point four million ($19,400,000). Made up of capital improvements that needed to be done this year of eighteen point two million ($18,200,000) and a recurring operating deficit of thirty point four million ($30,400,000). The next section here is the beginning of the solutions to address the deficit. The funding solution matrix, adjusted by Schedule if you flip the page, I take what was in the Stierheim's report, you know the Tab 5, that's there and start off with the numbers contained therein and adjust it for items that we found to be in error or changes since that point in time. The actions taken, cost containment measures just had minor changes. The union concessions. There were two items that we found of note. One was an adjustment of the total savings, a mathematical error, and the reevaluation of the F.O.P. (Fraternal Order of Police) management savings number. We just recalculated it and we came up with a difference of five hundred and ten thousand dollars ($510,000). So we subtracted there to be conservative. Pension contributions, this should be in the final number, the five million one ($5,100,000) actuarialy determined. The expenditure departmental deductions, started off with ten million five ($10,500,000). You see, I'm keeping open the... I'm suggesting we keep open the 13 NET (Neighborhood Enhancement Teams) offices. That we don't close the North Police Station and we delay the south closing only to the point that we need to sell the item, sell the station to come down to an adjusted number. And then the revenue enhancement section has the major changes. We start off with the numbers that were contained in the report. We, per the Commission directions from the last meeting, we take out the lease payment on the Maritime property. We take out all land sales that are included in this number. We also take out the Solid Waste fee to arrive... and then there are other adjustments based on new information that we have. Mayor Carollo: Mr. Manager, I'm sorry, let me correct something because this might confuse some people. We did give you direct instructions that we did not want any land sales included here, because we don't know if we want to make any at all. It will strictly depend if on the few parcels that we might be interested in selling if we get market value for those properties. But, we're not going to make any sales on any of our properties. There is no fire sale at all, because we don't need to make any fire sales. However, we do have one minor land sale that's showing here that I told you to include for one hundred and twenty-five thousand ($125,000). And that had nothing to do whatsoever with the situation that we're facing today. This would have been sold regardless of whether we were facing a deficit or not. That was a sale that had been in process for some time with the School Board of a minor parcel of land that we sold for one hundred and twenty-five thousand dollars ($125,000). Mr. Marques: Correct. Commissioner Plummer: Well, let me ask a question. Here where you're saying "not counting on initial fee from development of the port expansion.." I fail to understand why you're taking the six million ($6,000,000) out. We would get no less than that. That is guaranteed under today's conditions. If we sell, that number would he changed, of course. But we're not going to take any less than six million dollars ($6,000,000) which is already in the Interlocal Agreement. Why are you taking it out? 5 December 30, 1996 r Mayor Carollo: J.L., if you remember when we met the last time, we said and everyone agreed to, that we would take that out. The simple reason, you know, I'll lay it right on the table so everyone could understand. The worst thing that we could do, if we're going to renegotiate like we're going to, the Maritime Park lease and I'm calling it a lease because we don't who... sell or not to them is to be placed in a situation that we're including monies that we don't need, but will give the perception that we're clearing our deficit with that money. Because if we do that, then we're going to be negotiating from a point of weakness anything above that. Commissioner Plummer: Well, that's not my point. Mayor Carollo: Well, it is a point because the final negotiations... It has to be made clear J.L., that we're going to negotiate a fair lease or to put it bluntly, we're going to look at other options that we do have for that property. Commissioner Plummer: I fully concur with that Joe. But where I disagree is, is the fact that we are not under any circumstances going to do worst than that contract that we presently have of six million dollars ($6,000,000). Am I correct Mr. Manager? I mean, obviously we're not going to take anything less than what we're guaranteed in the Interlocal of today. Mayor Carollo: That's quite... Commissioner Plummer: We're going to try to do a hell of a lot better. Mayor Carollo: That's quite true J.L. But at the same time, if you're placing in something that we will be bound by then then it might be tough not to negotiate then for at least that six million dollars ($6,000,000) with them. And that's my concern. Commissioner Plummer: Well, OK. I... Mayor Carollo: And if we leave it out, it's going to be a plus. Commissioner Plummer: It's a plus item. Mayor Carollo: I mean, we've been able to work up this deficit using that or any land sales. And it's going to be a major plus for us once we bring in additional revenues. Commissioner Plummer: Yeah, but I'm looking at it as it stands in this document presented to us. We're six million ($6,000,000) more ahead than what this document says by the worst scenario. Mayor Carollo: Well, I'll be even more blunt with you. We're much more than six million dollars ($6,000,000) ahead. Commissioner Plummer: Absolutely. That's why I don't know why you're taking it out and showing it as a ne ative. But that's all right. Hey, it's on the record, as far as I am concerned we're six million (C,000,000) more than we're showing. Mr. Marquez: OK. All those balances from Schedule A come back up to that first page of Exhibit I. And that's the section again, "Funding Solution Matrix Adjusted by Schedule A." Over and above that, the Commission handled a lot of items that were not incorporated in that initial plan. The sale of that one piece of property is being reflected here for one hundred and twenty-five thousand ($125,000). The prohibition of Special Events waivers are included here for one million ($1,000,000). There are a number of other items - we've at the Commission's directive, we did the sweeps of our neighborhoods and... 6 December 30, 1996 Commissioner Plummer: All right, now stop. Let me tell you where I've got a problem. I've got a real problem in these so called "sweeps", because we're looking at a number here that I think is greatly exaggerated. Let me tell you why; OK? I'm not going to give this to you in public, but I'm going to tell you why I'm concerned. This person received a certified letter that was dated on the 20th of December, it was received on the 27th. I'm sorry the 28th day of December, eight days later, postmarked on the 27th. Post marked seven days after the date of the letter. Received the day after and told that the violations must be corrected on Sunday, December 29th, 24 hours later. Now, that's. This is crazy. Mayor Carollo: This is for what violation? Commissioner Plummer: OK, now let's get into that, all right. The first one is failure to have a valid Certificate of Use. Mr. Manager, their Certificate of Use expires tomorrow night at midnight. And the number is 344605-173493, and I saw it with these two eyes. They have a valid CU (Certificate of Use), all right. Now, we go to Erecting a Sign without a Permit. And I don't think that they need a permit to put a Budweiser sign inside of their place that shows out. Mayor Carollo: Yes, they do sir. They do in the City. They do in the County. Commissioner Plummer: Well, let me tell you, we're going to make millions if that's the case, OK. I don't know of any restaurant that doesn't have at least four, five, six, seven of those kind of signs in their window. Mayor Carollo: But they all need them. Commissioner Plummer: Well, if that's the case, then somebody better inform these people. Mayor Carollo: Now what my understanding is, J.L., that the inspector that is doing this has basically been assigned to do the big signs, not the real small signs. 'cause I mean, we would never finish if we get involved with the small signs. Commissioner Plummer: I agree with you and the big sign that they had on this restaurant, and you know who I'm talking about. Mayor Carollo: No, I don't. I don't know but... Commissioner Plummer: Well, you've eaten there many times. Mayor Carollo: Well, then... Commissioner Plummer: The sign blew away during Andrew, OK. It's been gone since Andrew. Now, why am I bringing this up, because I think it's crazy and I think this is the kind of thing, if we're going to continue and use this kind of action to in fact say, we're going to raise how much on delinquent, two point eight million ($2,800,000)? Mayor Carollo: Well but... Commissioner Plummer: Ain't going to happen. Mayor Carollo: See, what... Commissioner Plummer: Ain't going to happen. 7 December 30, 1996 �i Mayor Carollo: ... Yeah, but let me explain it to you, J.L. It will happen and more. And if anything, the Manager has been very, very conservative. In fact, I was even more conservative two weeks ago. The two million six hundred and eighty-five thousand ($2,685,000) and the increased number of accounts found through the sweeps, approximately less than half of this or approximately half of it has to do with the CUs (Certificates of Use) and COs (Certificates of Occupancy). The other half has to do with the nonpayment of the garbage fees. The amounts that we're showing for signage that is up without permitting is minute. And it's not included in this amount. What we will bring for signage, that does not have permitting, is going to be much greater than the small amount that was placed down in here... Commissioner Plummer: Joe, my only... Mayor Carollo: ... which is under one hundred thousand ($100,000) I think that we've included. Commissioner Plummer: My only concern is if we're using this number, and these numbers are not correct... Mayor Carollo: They are correct. They've very conservative. That's why we're using them. Commissioner Plummer: Well, OK. All I'm saying to you... Mayor Carollo: Something like that can happen in any sweep that you do, so we have to make sure that we correct it, if that's the case. Commissioner Plummer: OK... Mayor Carollo: And I'm glad that you were able to, you know, be given a copy of that. But when, just in the first week. Not even the first week, the first four and -a -half days that we began the sweeps we brought in approximately one hundred and fifty thousand ($150,000), out of which two-thirds of it was paid on the spot. That gives you a pretty good indication that our numbers are pretty solid. Commissioner Plummer: We'll find out. Vice Mayor Regalado: Mr. Mayor. Mayor Carollo: Yes, Commissioner. Vice Mayor Regalado: I think that J.L.'s concern is mine too because we're going to approve here a program that has a lot of numbers that we will see in the future. Now, every public company in the United States has to tender to the Securities and Exchange Commission a quarterly report about their expenses, a detailed certified report showing the actual revenues and expenditures versus the projected ones in their plan. So, I think that I would ask the City Manager to give this Commission a report, certified report of revenues and expenditures so in four months or six months, we won't be told by the press that what we approved is something that we never got in terms of back cost of licenses that were not charged properly. So, I don't know if the Manager had that in mind before, but I think that it will be important for the members of the Commission to have a detailed report of what is coming in and what is coming out. Mr. Marquez: If I may, the... We can give you those reports on a monthly basis and that way quarterly the... I would be careful of the term certified. If you're talking about an outside CPA (Certified Public Accountant), that's expensive. 8 December 30, 1996 Vice Mayor Regalado: Well, it doesn't have to be certified, but at least, from you. I mean, we'll believe it. Mr. Marquez: As it stands now, I have to give reports to the unions, to the State, absolutely to the Commission. So, whenever you want it. Vice Mayor Regalado: Thank you. Mayor Carollo: Thank you, Mr. Manager. Commissioner Plummer: Are you finish, sir? Mr. Marquez: Just going on, just to wrap up on Exhibit I. Well, we had a number of items that were new items beyond the original plan. And then in keeping with the cost of trying to fix some of the structural problems that this City faces, I show some departmental enhancements. This is where we're providing people into the Asset Management and Community Planning Department so that we could turn over our departments... that we can handle our leases better, that we can have new leases on our vacant land. Throwing people into the City Manager's office { so that we can have the productivity analysis group. Throwing people into the Risk Management area so that we could work our Workers' Compensation claims and provide two attorneys for the Law Department. Then, down below is additional capital cost. This is just the beginning of monies going over to the Safety Program, the repair of sidewalks so that we don't get these recurring lawsuits going forward. All this taken into account without counting the land, without counting the lease payment, has us covering the sixty-eight million dollar ($68,000,000) deficit by an amount that exceeds it by one hundred thousand dollars ($100,000) in projections. The recurring aspect of this, the thirty million dollar ($30,000,000) deficit is covered 100 percent with three hundred ninety thousand dollars ($390,000) left over. Now, I think the plan as is, right now, meets the objectives of the State and we can submit it in and they will take the 20-day period to review and get back with us where you know, we lack if we lack at all. Mayor Carollo: Well, Mr. Manager going back to some of the things that were said. The total amount that we have here is sixty-eight million one hundred thousand dollars ($68,100,000). The difference of the original plan that I presented of seventy-one million ($71,000,000) plus dollars, we're going to go over now and the minor changes from that plan that are presented. But, if it would help you, or if you think that we should include it, I prefer not to because I think this is solid what we have here. But, we could include six million dollars ($6,000,000) in land sales or lease payments so that there is no question from anyone... Commissioner Plummer: That's... Mayor Carollo: ... whatsoever that we have enough. Commissioner Plummer: Give us a buffer. Mayor Carollo: Now, let me go over the realities. Miami Springs Golf Course alone, what we have been talking about with School Board, others, I don't foresee us selling that if that's what this Commission decides for less than six million dollars ($6,000,000). The old police station at 12th Avenue, that is a piece of property that I would imagine that's a minimum of ten million dollars ($10,000,000) worth maybe more, somewhere in that neighborhood. The South Police Substation is approximately two million dollars ($2,000,000) worth. The Bobby Maduro Stadium site, that's worth a significant amount of dollars too. And these are properties that we're talking that we don't need and the City should have probably disposed of them some time ago. The South Site Substation that's one that we can debate in the future if we want to keep it or not. That's separate from the others that I'm talking about. And then over at First Street, we 9 December 30, 1996 have the Artime Center. That's assessed by the County at almost three million dollars ($3,000,000). So we have a significant amount of properties that are the ones this Commission discussed that we do not need, that we could put on the sale block right away. On top of that, on the Maritime lease, I assure you that the lease structure is going to be much, much favorable towards the City than anything that has been discussed before. I just don't want to get into it right now, because I don't want to give people the impression that we're going to be rolling in dollars. Whatever we sell or whatever we negotiate in leases, we should be looking at those dollars from the maritime, whatever we get up front or from land sales, we should be looking at that as a reserve for the City of Miami. And that would be my position for the future and whatever we get out of that on a yearly basis, out of interest, then we can use it for the general budget but the rest of it should be looked upon as a City reserve. So, we will be in real good shape for this budget that we're presenting. And frankly, next fiscal's year's budget once we present that also. So, if you really feel that we need to put another six million ($6,000,000) dollars here, we could certainly easily put another six million dollars ($6,000,000) here, but I would only put it if you really feel that you want that extra cushion and I would word it in the way that I described as "land sales or monies for leases." Mr. Marquez: I think there is a middle ground here that will accomplish both ends. And that's... we can keep the schedule as is here, but in transmittal letter to the State Oversight Board, I'll list out the properties for sale and the fact that we do have a lease, that minimum that's not in these numbers so that they're... Commissioner Plummer: Show it as a fund balance. Mayor Carollo: Yeah, yeah. That's the way that you and I had talked about could be the other way presented, which I would prefer that way, if it could be done that way. Commissioner Plummer: Well, I think Joe, one of the protections that we need to build in, if whatever reason these numbers which we have projected do not come true, we have a balance of a fund balance that would cover any deficit. And I think that's very, very important. Mayor Carollo: Well, the numbers we have here Commissioner, I assure you will be pretty, pretty close. In fact, some of them we will bring in more than what we're projecting. But, your point is well taken. Commissioner Plummer: Mr. Marquez, for the record. Of the recurring revenue in this projection, what percentage? Mr. Marquez: Slightly more than 100 percent. Commissioner Plummer: More than 100, and the Oversight Board asked for 60? Mr. Marquez: Yes, sir. Commissioner Plummer: OK. Just for the record, OK. Now, you're ready for a motion? Mayor Carollo: We need to go over a few more things J.L., that should be explained. Union concessions. We originally were working on the number of twelve million nineteen thousand ($12,019,000). The new adjusted real numbers that you have come down to is ten million five hundred and forty-three thousand ($10,543,000). Commissioner Plummer: Where are you Joe? Mayor Carollo: This is on the second page, Schedule A. 10 December 30, 1996 FA Commissioner Plummer: Yeah. Mayor Carollo: Can you go over with us the difference of the nine hundred and sixty-six thousand ($966,000) and the five hundred and ten thousand ($510,000), where that came from? Mr. Marquez: In the two adjustments there was an adjustment of the COLA (Cost of Living Allowances) savings. When originally calculated, crossed all union contracts. They figured savings from the COLA contracts, the calculation included fringe benefits in that number and that was an incorrect treatment of it and we're yanking that out. And that's a nine hundred sixty- six thousand dollars ($966,000) effect. The second item, there still some debate on this one, but I'm trying to be conservative in my numbers. We have in the F.O.P. (Fraternal Order of Police) contract there was a number assigned to the maintenance cost. The police officers are going to be picking up the maintenance of the cars, the oil changes and the air filters. And the number was assigned of six hundred thousand ($600,000) to that. I asked staff to start justifying all of these numbers and getting things in writing and we were not able to find that calculation so, I asked staff to recalculate it and based on that recalculation that I saw as of Friday, the replacement of oil, the replacement of air filters, the time it takes to do all that is about eighty thousand dollars ($80,000) worth of savings annually. And then the staff's time that's freed up that can be diverted to other projects that are handled by outside vendors, would save us an additional ten ($10,000) to twenty thousand ($20,000), so I just took the ten thousand ($10,000). So between the two, I came up with approximately a ninety thousand dollar ($90,000) adjustment of savings for that. It was six hundred thousand ($600,000) for, we're saying it's ninety ($90,000). So the difference of five ten ($510,000) is being deducted. Commissioner Plummer: And it's still a seven year replacement? Mr. Marquez: It is still a seven year replacement. That's another item. Mayor Carollo: And before I come back, any other questions from the other members of the Commission? Mr. Manager, let me go back over everything else we have here because we have as a whole, worked very hard to make cuts in bringing new revenue sources to the City of Miami and it's seems that the message really hasn't gotten out just how much this Commission and this City, all of us working together, the unions, department heads, assistant department heads, the administration, the Commission. The true amount of work that we have put together really hasn't gotten out and even as late as last night we're hearing a news program that we have really done nothing. That the efforts that we put forward have been minimal. And this Commission has taken every step that was suggested in Stierheim's plan basically, with the exception of the Jinad of a garbage fee and many, many more that weren't in the strategic financial recovery plan. And for anyone to say that we have not done anything is totally, totally erroneous and I could only say that either that they're people who are totally misinformed or purposely saying that because they just don't want Miami to move forward and to survive. But I don't think that there has ever been a Commission that has worked as diligently and as hard to try to save monies for this City and to find new sources of revenue like this Commission has. It hasn't been easy at all. In fact, at the beginning it was hard to believe that at the end we could find sufficient new sources of revenues, that we could make enough cuts, that we could get enough concessions to be able to overcome this deficit in the same year. But we have presented a solid plan in order to do that. Mr. Manager, if I could go back and run over this final financial recovery plan that we will be approving officially today and compare it with some of the numbers that we gave two week ago. When I presented a plan that included over seventy-one million dollars ($71,000,000) a couple of weeks ago, it included what we have worked with, with Merrett Stierheim plus well over twenty plus million dollars of new revenues that I had found or worked together with the Police Department or other areas. Let me go down the list of some of these just to make sure we understand the difference of what we presented before for discussion. And if you remember, I 11 December 30, 1996 �A asked all my colleagues in the Commission, I asked you in the administration and all the department heads if you all could look at it carefully and make sure that my numbers were correct. And see if there were any additional sources of revenues or cuts that we could find to include on it. The first one was the Bedminster payment, that counted correct? And that's included here? We had the law enforcement block grant of three million dollars ($3,000,000). That's also included in your plan. Special events and contributions, that was also included in this new plan, correct? Mr. Marquez: Uh-huh. Mayor Carollo: The Cops Technology grant, three million dollars ($3,000,000), also included in the plan? Mr. Marquez: Yes, sir. Mayor Carollo: The Cops Funding Match Savings, also included in the plan, correct? Mr. Marquez: Yes, sir. Mayor Carollo: Pension concessions, also in the plan. Union concessions, also in the plan with the difference that we discussed a few minutes ago. Management policy is already in place in the plan. Departmental savings, that's also in the plan. The MESA grant, also in the plan. Other sources of revenues, as I described in the presentation that I gave before the Commission, it's so in your plan. Fire inspection fee, nine hundred and seventy thousand dollars ($870,000) approximately, also in the plan. Forfeiture fines, two million dollars ($2,000,000) also in the plan. Another two million two hundred thousand dollars ($2,200,000) for an additional 50 officers covered by the Cops program also in the plan. Pawn shop fee, also in the plan? Mr. Marquez: Yes, sir. Mayor Carollo: Police Department savings, one million dollars ($1,000,000), that's also in the plan. Collection on the CUs (Certificate of Use) and Occupational Licenses and Solid Waste fees also in the plan. You have the long term contract for phone services, that's also in the plan here. And, the self-insurance BEST practice for one million dollars ($1,000,000). I believe that's one that you took out of the plan because you wanted to add more money for expenses that we will have up front through solvent cases. So that's one that was taken out for one million dollars ($1,000,000). And then we had which is the last thing that I had put down in my plan, savings from Capital Improvement projects and self-insurance bonds, that was one million two hundred thousand ($1,200,000). And the reason I believe you took this one out, because I didn't see it here, was why Mr. Manager? Was that trying to balance for another two million ($2,000,000) that we had not counted before? Mr. Marquez: There is two million that were being carried for savings for not replacing vehicles and the one million two ($1,200,000) was part and parcel of that ultimately. Mayor Carollo: So the whole plan that I presented then of over seventy-one million dollars ($71,000,000) we had only two million two hundred thousand dollars ($2,200,000) that we took out. Actually, one of them was rearranged, the other one was taken out. And the difference of what we came down to sixty-eight million dollars ($68,000,000) was that there was over one million dollars ($1,000,000) in union concessions that we had calculated at more than it actually was in real dollars then. And that's how we got down to the final sixty-eight million dollars ($68,000,000), sixty-eight million one hundred thousand ($68,100,000). OK, I just wanted to go over it so... 12 December 30, 1996 r i Commissioner Plummer: Joe, you know, I think it's got to be said. They've done a tremendous job for this year. But the job is not over. The job is just starting. And my concern Mr. Manager, and I'll just put it on record. As you know, I was hopeful of getting more recurring revenues than what's in this particular plan. And it has to be, when you look at this plan that you're presenting to us now, and of the twenty million ($20,000,000) of new revenues, thirteen million ($13,000,000) is nonrecurring. Only seven million dollars ($7,000,000) are reoccurring, correct? We already know... Mayor Carollo: No, no. If we could go over that Mr. Manager. Commissioner Plummer: Excuse me. Unless his numbers are wrong. Mr. Marquez: No. Commissioner Plummer: Under new revenues, cost savings... Mr. Marquez: There is also revenue enhancements up in the section above from the original. Commissioner Plummer: Down when you come to the subtotal, for this year it's twenty million eight six three ($20,863,000). Mr. Marquez: Those are new revenues beyond the initial strategic recovery plan. What I am saying... Commissioner Plummer: What, then what is not re -recurring of that twenty million ($20,000,000)? Mr. Marquez: No, what you said was correct. Out of that twenty million ($20,000,000), 13.7 is not... Commissioner Plummer: Exactly what I said. Mr. Marquez: OK. Commissioner Plummer: We know next year's deficit already is approximately forty million dollars ($40,000,000). Is that a correct statement? Mr. Marquez: Depending on how you look at it, between thirty ($30,000,000) and forty million dollars ($40,000,000). Commissioner Plummer: OK, between thirty ($30,000,000) and forty ($40,000,000). Now, we also know the concessions made by the unions are only for two years. Correct? Mr. Marquez: Correct. Commissioner Plummer: On the third year we have a major problem which will be labor negotiations and hopefully, they're going to once again try to help us save the City. But what I am trying to say, and the bottom line is, this is a great beginning. It is not the end or over with. It is a continuing problem that we've got to address and as Regalado said, we're going to have to do it on a monthly basis. There is no question. And I think where the real crux of the matter is going to have to be, is that we're going to have to study these monthly reports and see in the r: areas if we're not putting forth those amounts of dollars that have been projected on the full 12 months. Are you ready for a motion? 13 December 30, 1996 r Mayor Carollo: Commissioner, we are ready for a motion. Commissioner Plummer: Mr. Mayor, predicated on that fact that the City Manager, Mr. Marquez is the only one who has had the opportunity to sit with the Oversight Committee, they've chosen not to sit with us, for whatever reason good, bad or indifferent. Mr. Marquez came to us as an expert in numbers and in finance. I assume that Exhibit I, which is presented to us today, he feels will be in accord, which is with the Oversight Committee of whom he has been working with. I move the fiscal year 1997 financial recovery plan submitted as of 12/30/96. That in the form of a motion and then I have discussion. Mayor Carollo: There's a motion, is there as second? Vice Mayor Regalado: Second. Mayor Carollo: Second by Vice Mayor Regalado. Commissioner Plummer: Mr. Marquez, is it necessary in the resolution to have the first two paragraphs to repeat and repeat and repeat? Mr. A. Quinn Jones, III, Esq. (City Attorney): What are you talking about, the "Where As" clauses? Commissioner Plummer: The "Where As" clauses? I mean, to me it's just not necessary. If you feel that's it absolutely necessary, fine. But I just think we need the first two paragraphs. Mr. Marquez: The first two "where as" no sir, it's not absolutely... Commissioner Plummer: I would delete the first two paragraphs out of the resolution. Mayor Carollo: Can I see that J.L., please? Commissioner Plummer: Sure. Mayor Carollo: Thank you. Commissioner Plummer: I guess you want me to read it. Mayor Carollo: J.L., you can't move this one until we would vote on the other one that we have. Mr. Quinn: You had a motion pending. Commissioner Plummer: What was the other one? Mayor Carollo: The other was just a regular motion. This is the official resolution. Mr. Quinn: The motion was basically to accept it, but you really don't need. You really don't need the motion and the resolution. Commissioner Plummer: OK, take your choice. Mr. Quinn: Why don't you... Mayor Carollo: Yeah, resolution will be fine. Why don't we just make the other one the resolution. 14 December 30, 1996 Mr. Quinn: Yeah, why don't you withdraw the motion. Commissioner Plummer: Fine, whatever you want. Mayor Carollo: OK, all right. Mr. Quinn: Mr. Mayor, if I could just... Commissioner, you had expressed concern about deleting the two, the first two "where as" clauses. The only reason we included them because you know, this is basically for someone who may come along years down the line, and what it attempts to do is just give the complete factual... Commissioner Plummer: Fine. Fine. Mr. Quinn: So I prefer keeping... Commissioner Plummer: Fine. Mayor Carollo: OK, that's a good point, Mr. City Attorney. Commissioner Plummer: I don't need to be reminded all the time. Mayor Carollo: So, we will be voting on the full resolution that was before us, that the motion was made by Commissioner Plummer seconded by Vice Mayor Regalado. If we could have a roll call on this Mr. Clerk? Mr. Walter J. Foeman (City Clerk): Roll call. The following resolution was introduced by Commissioner Plummer, who moved its adoption: RESOLUTION NO. 96-949 A RESOLUTION WITH ATTACHMENTS, ACCEPTING THE FINANCIAL RECOVERY PLAN FOR FISCAL YEAR 1996-97 (THE "1997 PLAN") AND AUTHORIZING THE CITY MANAGER TO SUBMIT THE 1997 PLAN, IN FINAL FORMAT, TO THE FINANCIAL EMERGENCY OVERSIGHT BOARD (THE "FOB") ON OR BEFORE JANUARY 3, 1997; FURTHER, THE CITY HEREBY COMMITS TO IMMEDIATELY IMPLEMENT EVERY COMPONENT OF THE 1997 PLAN WITHIN 45 DAYS OF APPROVAL BY THE FOB IN ACCORDANCE WITH THE INTERGOVERNMENTAL COOPERATION AGREEMENT (THE "ICA"). (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: F. h. AYES: Commissioner J. L. Plummer, Jr. Commissioner Humberto Hernandez r; Vice Mayor Tomas Regalado y Mayor Joe Carollo NAYS: None. SWIS Commissioner Wifredo Gort 15 December 30, 1996 r----------------------------------------;--------------------- 4. DISCUSS / RESCHEDULE JANUARY 9 1997 COMMISSION MEETING TO JANUARY 16, 1997 -- SEE LABEL 1. Commissioner Plummer: Mr. Mayor, I am available to change the date if you wish for the... from the January 9th to the 16th. And if you... Mayor Carollo: January 9th to 16th. The 16th is what day, Commissioner? Commissioner Plummer: The same, Thursday. Mayor Carollo: Thursday? Commissioner Plummer: Yeah. Why don't we do it tentatively. I'll make a motion at this time to change the meeting date of January from January 9th to the 16th, tentative approval of all others being able to comply. Mayor Carollo: OK, there's a motion. Is there a second? Commissioner Hernandez: Second. Mayor Carollo: Second by Commissioner Hernandez. All in favor signify by saying "aye." Commissioner Plummer: We're adjourned? Mayor Carollo: OK, we're adjourned. Thank you all very much. 16 December 30, 1996 The following resolution was introduced by Commissioner Plummer, who moved its adoption: RESOLUTION NO. 96-950 A RESOLUTION RESCHEDULING THE FIRST REGULAR CITY COMMISSION MEETING OF JANUARY, 1997, TO TAKE PLACE ON JANUARY 16, 1997. (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 Humberto Hernandez Vice Mayor Tomas Regalado Mayor Joe Carollo NAYS: None. ABSENT: Commissioner Wifredo Gort THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION, THE MEETING WAS ADJOURNED AT 12:15 P.M. JOE CAROLLO MAYOR �� II * INGOf2F'»OKAYED �' •'• I b�96 17 December 30, 1996