HomeMy WebLinkAboutCC 1985-07-09 MinutesCITY OF MIAIVii
OF MEETING HELD ON ULr 9, 19�5
.PREPARED BY THE OFFICE OF THE CITY CLERK
CITY HALL
RALPH G.. ONGIE
CITY CLERK
INDEX
MINUTES OF REGULAR MEETING
CITY COMMISSION OF MIAMI, FLORIDA
July 9, 1985
ITEM
SUBJECT
LEGISLATION
PAGE
NO.
NO.
1
DISCUSSION OF RESOLUTION TO ALLOW
DISCUSSION
1-4
CONSTRUCTION OF BAYSIDE AND BAYFRONT
7/9/85
PARK REDEVELOPMENT TO ENABLE ROUSE
COMPANY TO CONSIDER OFFER OF ECONOM-
IC PARTICIPATION IN D.R.I. PROCESS
(See label 3).
2
PROCLAIM WEEK OF JULY 7, 1985 AS
PRESENTED
4
"MISS UNIVERSE WEEK".
7/9/85
3
CONTINUATION OF RESOLUTION TO ALLOW
M 85-696
4-9
CONSTRUCTION OF BAYSIDE AND BAYFRONT
7/9/85
PARK REDEVELOPMENT TO ENABLE ROUSE
COMPANY TO CONSIDER OFFER OF ECONOM-
IC PARTICIPATION IN D.R.I. PROCESS.
4
AUTHORIZE ISSUANCE OF $13,800,000 IN
10014
10-20
NEW BONDS IN ORDER TO REFINANCE AT
7/9/85
LOWER RATE.
5
RESOLUTION AUTHORIZING NOTICE OF
R 85-697
20-21
INTENTION TO CALL OUTSTANDING
7/9/85
$10,345,000 PARKING FACILITIES
REVENUE BONDS.
6
APPROVE PRELIMINARY OFFICIAL STATE-
R 85-698
21-23
MENT RELATING TO THE SERIES 1985
7/9/85
BONDS.
7
URGE ZONING BOARD TO CONSIDER A
M 85-699 -
23-25
SPECIAL MEETING FOR BILLBOARD APPLI-
7/9/85
i
t
CATIONS.
On the 9th day of July, 1985, the City Commission of Miami,
Florida, met at its regular meeting place in the City Hall, 3500
Pan American Drive, Miami, Florida in special session to consider
business of public import, namely, the refinancing of the Parking
Revenue Bonds.
The meeting was called to order at 2:39 O'Clock P.M. by
Mayor Maurice A. Ferre with the following members of the
Commission found to be present:
Commissioner Miller J. Dawkins
Commissioner J. L. Plummer, Jr.
Vice -Mayor Joe Carollo
. ABSENT:
Commissioner Demetrio Perez, Jr.
Mayor Maurice A. Ferre
ALSO PRESENT:
Sergio Pereira, City Manager
Lucia Allen Dougherty, City Attorney
Ralph G. Ongie, City Clerk
An invocation was delivered by Commissioner Plummer who then
led those present in a pledge of allegiance to the flag.
-------------------------------------------------------------------------
1 DISCUSSION OF RESOLUTION TO ALLOW CONSTRUCTION OF BAYSIDE AND
BAYFRONT PARK REDEVELOPMENT TO ENABLE ROUSE COMPANY TO
CONSIDER OFFER OF ECONOMIC PARTICIPATION IN D.R.I. PROCESS
(See label 3)
-----------------------------------------------------------------
Mr. Carollo: We are going to start with item 4, because we need
a fourth vote for item 1, 2 and 3. So while we wait, and
hopefully Commissioner Perez will arrive, we'll deal with item 4.
Mr. Gilchrist, can you briefly explain to the Commission what
item 4 is about.
Mr. Gilchrist: The Department of Community Affairs of the State
of Florida reviewed the Bayside Project and Bayfront Park
Redevelopment Project as a result of our application for a
$6,000,000 UDAG grant. They determined that by their
interpretation, they considered those two projects aggregated to
be a Development of Regional Impact. In order to proceed with
the construction of Bayside and the construction of Bayfront Park
Redevelopment Project, we would have been held up for as much as
a year while going through the application for development
approval. We negotiated since December last year with the
department, an agreement which they call a developers agreement,
which allows you to proceed with construction while going through
an environmental review. In exchange we agreed to do something
that was our intention to do anyway and that is to do a D.R.I.
for the entire downtown area. The state law allows a downtown
development authority to make application as a developer for the
entire are encompassed within their definition of downtown. So
s1 1 ,July 9, 1985
they will proceed to do this application for development approval
while we are allowed to proceed with the construction of the
project. This agreement was negotiated over a long period of
time and involved the Rouse Company, the Downtown Development
Authority, the City of Miami, and the state has jointly signed
the legislature in the last session changed the law regarding the
rules of these kinds of projects and the D.R.I. and in order to
meet that... I'm sorry, let me back off... the law took effect
on July Ist of this year. We had the agreement in our hand the
Thursday prior to the Monday, July the first, signed by the
Department of Community Affairs. We went to the Manager and
asked him to execute it in order to grandfather in the agreement
prior to the legislative change. We are here today asking you
to ratify and confirm the Manager's execution of that agreement.
Mr. Plummer: Can I see the copy of the agreement between the
City and Rouse?
Mr. Gilchrist: Do you mean the lease agreement?
Mr. Plummer: No, I'm talking about the agreement as it relates
to the D.R.I.
Mr. Carollo: It should be in the package, Commissioner Plummer.
Mr. Pereira: Yes.
Mr. Gilchrist: The Rouse Company is the signator to this
agreement primarily because the local Regional Planning Council,
the South Florida Regional Planning Council used this medium to
impose Bayside certain environmental concerns. The Rouse Company
agreed in Exhibit F of the agreement you will see there is a long
listing of conditions, which the Rouse as a signator to this
agreement agreed to comply within the signing of this agreement.
Mr. Dawkins: What prevented the City from applying for the right
to do this rather than have a Downtown Development Authority
apply. Why couldn't we apply as the City of Miami?
Mr. Gilchrist: Commissioner, we attempted to do that. The state
law says that a Downtown Development Authority has the legal
right to do that. They denied that the City had the right to
replace the Downtown Development Authority.
Mr. Dawkins: What happens in the event that this Commission
dissolves the D.D.A. and puts it under the Off -Street Parking,
which all of that go under the Manager. What happens then?
Mr. Gilchrist: I would think that it could pass on to its
assigned....
Mr. Dawkins: Madam City Attorney, I don't need any thoughts now.
I need some facts, Madam City Attorney, in the event that this
Commission decides to combine the D.D.A. and the Off -Street
Parking and place that in the office of the Manager, legally what
is the consequence?
Mrs. Dougherty: The successor entity would have the
responsibility, Mr. Commissioner.
Mr, Dawkins:
Mr. Pereira:
Mr, Dawkins:
City Manager,
Mr. Plummer:
her,
t
sl
Which would be the City of Miami,
Yes.
No, no, no, Mr. Plummer, I appreciate you and Mr.
but we pay a lawyer for legal advice.
She gave you the answer.
2
I was just agreeing with
July 9, 1985
a
Mr. Dawkins: No, you are agreeing in one sense and she is
agreeing in a maybe. She is saying the successor.
Mr. Plummer: That's us, the City.
Mrs. Dougherty: Whoever you make the successor, if it'sthe
City, then the D.D.A. would be the City.
Mr. Dawkins: But if it is the county, it would be the county,
Mrs. Dougherty: That's right.
Mr. Plummer: ,John, let me ask you a few questions. First of
all, how much is Rouse paying towards the cost of the D.R.I.?
Mr. Gilchrist: Sir, they're not doing the D.R.I. at all.
Mr. Plummer: They can't move without it. They're the
developers? How much are they paying towards the cost of the
D.R.I.?
Mr. Gilchrist: They're not raying towards the cost.
Mr. Plummer: They are not paying for it. Why aren't they?
Mr. Gilchrist: We didn't ask them to do that.
Mr. Plummer: Well, you should ask them. How much is it costing
the City?
Mr. Gilchrist: I believe the contract came before the Commission
for an outside services. I'm not sure of the number. But it's
three to four hundred thousand dollars.
Mr. Plummer: They're a portion of it, right?
Mr. Gilchrist: Yes, the same as any other development would be
in downtown.
Mr. Plummer: But they're the developer of Bayside. The
developers are the Rouse Company. And you're telling me they are
not paying anything for a D.R.I. even though they are the
developers and not the City.
Mr. Gilchrist: Yes, sir, I'm telling you that. I might... may
I add to it, though?
Mr. Plummer: I hear you. You told me all I needed to know.
Mr. Carollo: Sir, anything in the contract that we previously
had with Rouse that would keep them from not having to pay
anything towards the D.R.I.?
Mr. Gilchrist: There is nothing that would restrict that, sir,
no, sir.
Mr. Plummer: But there is nothing in there that says that they
don't have to pay.
Mr. Gilchrist: There is nothing that says they don't have to
pay•
Mr. Plummer: I find in here penalties. These are penalties paid
to whom?
Mr. Gilchrist: The penalties result in... there are three steps
to this. One is that the State Department of Community Affairs
wanted some way of holding the Downtown Development Authority
responsible to perform within a year....
sl 3 July 9, 1985
0
Mr. Plummer: Commissioner Carollo, I noticed that the people
that will receive... if you want to stop this, we can get back to
it.
Mr: Carollo- Why don't we stop this re;il briefly, we were almost
finished, I think, anyway.
Mr. Plummer: No, I have one more question, but we can stop it.
THIS ITEM WAS TEMPORARILY DEFERRED.
--------------------------------------------------- _---
2 PROCLAMATION OF JULY 7, 1985 WEEK AS MISS UNIVERSE WEEK
--------------------------------------------------------------
Presentation was made to Mr. George Honchar and Mr. Monty Trainer
proclaiming the week of July 7, 1985 as Miss Universe Week.
-----------------------------------------------------------------
3 CONTINUATION OF RESOLUTION TO ALLOW CONSTRUCTION OF BAYSIDE
AND k3AYFRONT PARK REDEVELOPMENT TO ENABLE ROUSE COMPANY TO
CONSIDER OFFER OF ECONOMIC PARTICIPATION IN D.R.I. PROCESS
-----------------------------------------------------------------
Mr. Carollo: We're back to item 4.
Mr. Plummer: Getting back to the penalties, I see they're
assessed against the City and the D.D.A., but who is the
recipient of the penalties?
Mr. Gilchrist: The State of Florida. May I add something to an
earlier question you asked, because Madam City .Attorney reminded
me the lease agreement with the Rouse Company has a condition
precedent that the D.R.I. has to be accomplished and that it is
the City's responsibility in that lease agreement.
Mr. Plummer: Well, accomplishing it is one thing; haying for it
is another. Next question, as we all know, there are certain
provisions or mandates put it by the cabinet with D.R.I.s
including absolute turn -down. If Rouse starts to proceed with
construction and in fact for some reason the D.R.I. is denied,
Commissioner Carollo's little friend from Sun Island comes over
and starts raising holy hell and the whole thing is denied.
Mr. Carollo: Excuse me, sir, that's Star Island.
Mr. Plummer: I said Sun Island.
Mr. Carollo: You got the first one right, little.
Mr. Plummer: What I'm really saying to you, John, is what
provision is built in here to protect the City? Let's say that
for whatever reason the D.R.I. is either modified, mandated, or
denied. Then Rouse can come back to the City and say, "Hey,
we're going to hold you responsible." Now is Rouse willing to go
and proceed along the line in good faith with the City and say,
"Hey, look, boys, we understand this is a process and we
understand if in fact it does get down to the nitty-gritty and
something happens, we understand," or are they going to say,
"Hey, boys, we got $130 million involved, and you didn't do what
you were supposed to do and we're looking for $10,000 damages a
day." Is someone from Rouse here?
Mr. Gilchrist: Yes, Debbie Mulinski, from Traurig's office is
here representing the Rouse Company. I would like to answer part
sl 4 July 9, 1985
of this because... just to clarify what those time -frames mean.
The deadline for application, not for the accomplis}lment of the
development order, but making an application, is one year from
the date of signing of this. That's :in application for a D.R.I.
for all of downtown, of which Baysi,le is only....
Mr. Plummer: Yes, but i.ri t_h-rt period of :i year, is we all hope
and expect, they're going to accoml>lish i hell. of ;i Lot in that
year. That even complicates it a little further, John, because
then they have started where people coul.d find som,2thirig wrong
with. What happens if they c:om<� 1):.i(-k during that D.R.I. and say,
"Hey look, we want th�rt building ovF2r titer,_ 1 hunc.Ired feet back,
you got it too close to the water." Where is the City?
Mr. Gilchrist: I thin; we have to yet our attorney to answer,
but my point wis tit -at we rare not_ icc.omplishirrg a development
order. We're making an application for one.
Mr. Plummer: Ilrr(l you dive one ye�-ir to make the application. In
one year RouSc. is yoing to be doing a lot of work. I'm saying
that if the cabiriet mandates during t11at time, after the thing is
submitted and they say, "No Rocis(� Company, we don't Like wIlat you
did. We warit you to change it." Is the Rouse Company prepared
to make that change ;It their own expense?
Mr. Gilchrist: Debbie wi 1.1 have to answer for that, by the way,
though....
Mr. Plummer: I don't think the City should be liable. The
safeguard is that they don't get to start construction until the
D.R.I. is approved.
Mr. Gilchrist: This agreement incorporates their proposed plans
for the project and says they must build it according to those
plans.
Mr. Plummer: That's our mandate.
Mr. Gilchrist: No, no, this is state's mandate.
Mr. Plummer: That's a state mandate.
Mr. Gilchrist: That's included in this agreement.
Mr. Plummer: All I'm saying is if something goes wrong, I want
something from Rouse that says "City, it wasn't your fault.
We're not going to hold you responsible." I think that is only
fair.
Ms. Debbie Mulinski: For the record, my name is Debbie Mulinski.
I'm an attorney with offices at 1401 Brickell Avenue representing
the Rouse Company. Commissioner Plummer, we appreciate your
concerns and we had essentially the same concerns that
Commissioner Plummer is raising right now. In order to assure
that we could construct the Specialty Center during your
application period as well as in the long shot, the project could
even be... the downtown D.R.I. could be denied, that we would be
able to continuously operate and maintain our center. We believe
that paragraph 4 of the agreement gives us those assurances. The
burden upon the Bayside Group is to develop substantially in
accordance with the site plan that is an attachment to this
agreement. As long as we do that, we can construct, we can
operate, in fact I believe that language here is that the
department would riot enjoin, modify or otherwise prevent
construction or operation.
Mr. Plummer: The department is us.
Ms. Mulinski:
Affairs.
The department is the Department of Community
sl 5
July 9, 1985
n
Mr* Plummer.: in Tallahassee,
Ms, Mulinski: Yes, sit,
Mt. Plummer: Have they signed off oil this?
Ms, Mulinski: Yes.
Mr. Plummer.: Debbie, you got your check book?
Ms, Mulinski: No, sir.
Mr. Plummer: I think it's only fair that the Rouse should have
some obligation as far as cost is concerned,
Ms. Mulinski: I believe that question was resolved in connection
with the lease agreement.
Mr. Plummer: It says we shall secure the permit. It doesn't say
we shall pay for them.
Ms. Mulinski: I was not involved in the lease agreement
negotiations or drafting. I would have to defer at this time to
Mr. Gilchrist and his Mayor.
Mr. Plummer: To defer we shall.
Mr. Carollo: Debbie, let me say what I think is what
Commissioner Plummer is trying to say on behalf of all of us that
are here, that Rouse better cough up their share of the monies
for those permits.
Mr. Plummer: Of the D.R.I. in particular.
Mr. Carollo: Of course.
Ms. Mulinski: I'm really not authorized to respond to that. Let
me just add one point, though. We have, as part of the
negotiations of this agreement, we worked very closely with the
Regional Planning Council and have agreed in anticipation of the
types of conditions that they will impose upon us, we have gone
through our own mini D.R.I. review with the Regional Planning
Council.
Mr. Plummer: That was to your advantage.
Ms. Mulinski: I believe to the City's also.
Mr. Dawkins: I think you've heard from two. I'll let you hear
from three and three out of five is a majority. If Rouse Company
does not pick up the cost, some of the cost of this D.R.I., it
would not be applied for. It's just that simple. Come right on,
Mr. Brooke.
Mr. Ron Brooke: I have a responsibility. My name is Ron Brooke
for the record, it's Barber, Shevin, Chapel and Halbrowner. I
was hired by the City as a special counsel to assist in moving
this agreement through D.C.A.
Mr. Dawkins: You should have been protecting our interest and
saw that we didn't come up to this.
Mr. Ron Brooke: I was not charged with the responsibility of
negotiating with Rouse as to what they should or shouldn't pay.
I must tell you that, a) under this agreement, whether or not you
do that... I assume we're going to go forward with the plan on
this, signed an agreement, the problem that you have is Rouse is
going to build their project no matter what unless you tie
something additional in there. The problem is they're going to,
sl 6 July 9, 1985
for example Commissioner Plummer, if the D.R.I. is turned down,
you're still going to have a Rouse Project and it's going to be
there. You nay riot have :3n amphitheater. You may have an
amphitheater with a chain - link fence around it under the
agreement, but....
Mr. Dawkins: Ron, you say we Inay not have a what?
Mr. Brooke: YOU may not have a park.
Mr. Dawkins: So that means we may not have no Noguchi Park?'
Mr, Pereira: It's not .Angtichi, it's tloguchi.
Mr. Plummer: Get out the latiteriis.
Mr. Carollo: Plummer, no ethnic jokes.
Mr. Gilchrist: I would like to say something to you also,
because the normal procedure in doing an overall downtown
D.R.I....
Mr. Dawkins: The only thing, Mr. Manager....
Mr. Gilchrist: I really need to make this point, I'd like it to
be heard, yes, sir.
Mr. Dawkins: Let me say this to the Manager. Mr. Manager, the
only thing we are concerned about here is we have four or white
elephants. The biggest one is the Hyatt Hotel. How much do we
subsidize the Hyatt each year?
Mr. Pereira: About $4.2 million.
Mr. Dawkins: $4.2 million we subsidize the Hyatt, so all the
three of us are saying here to you that we don't intend to
subsidize nothing else for the City of Miami.
Mr. Plummer: No, not the hotel, riot just the hotel.
Mr. Pereira: Oh no, not the hotel.
Mr. Carollo: Guess where the gentleman that used to push this is
working at now?
Mr. Plummer: Joe, let me get something correct on the record,
because the Manager has made a statement that's not correct.
Commissioner Dawkins, your question is what do we subsidize the
hotel. His answer $4.2 speaks to the whole center.
Mr. Pereira: The whole center; not just the hotel.
Mr. Plummer: Not just the hotel, because I can see the headlines
tomorrow. It's bad enough!
Mr. Pereira: I assumed he was referring to the total convention
center.
Mr. Dawkins: City of Miami, which is known as the Knight Center.
Mr. Plummer: Sergio, before you came here, Joe's little friend
from Sun Island came here and had a ]land in really putting
together that package for the hotel so there would be no
problems. God help us if we ever have help like that again!
Mr. Pereira: Who is his little friend?
Mr. Carollo: Well, you know, he likes to get his hand in things,
Mr. Plummer; John, I'm going to save you a lot of problems,
sl 7 July 91 1985
Mt, rilchristi Let me s,ziy this one thing.
Mr. Plummer: You want to take Loss or you w, to take a
deferment? You want to keep tal_king, you'll get a loss. You
want to shut up, yoi_t get a def.e'rrnetit. `1r. Vice -Mayor► I suggest
at this time that we give the Roust? Company some time to think
abort how they would like to hr,ve their D. R. I . ind that we come
back Mon(lay, if they're ready to sperik c)n Monday 'And I ' l l be glad
to meet on Monday if necessary- Und�rst.,nd w}l,.it we'.-7e doing
here. The D.R.I. has .ttrea(ly bee�rl signe,i- We rir.e here to ratify
unless we deny, then they have? to st,,r.t r.he aj)pli.(-,tjoll all over
again.
Mr.
Carollo:
Let's understand togethE-2r,
Comm.issiOner, but I
don't
know if
maybe 1N1onday is giving them
sufficient time or not.
Mr.
Plummer:
Thursday is fine with me.
Mr. Carollo: Maybe we can have it included in Thursday's regular
Commission agenda.
Mr. Gilchrist: I was going to recommend a method to do that.
Mr. Plummer: All right, sir. You got a better method than mine?
Mr.
Gilchrist: No,
I just
want to suggest that normally,
under
the
D.R.I. downtown
process
and there have been two others
clone
in
this sL.ate already, one
in Tampa and .Jacksunvi LLe. The
cost
of
that is chargers
off to frzture dev,3101311,ents -Is ail impact
fee.
I think
it would be
reasonable
to consider .in impart fee to
the
Rouse
Company, based
on that
amortization.
Mr. Plummer: John, give me a reasonable portion of what you
think the Bayside area of the total D.R.I. Is it 5%? Is it l%?
Mr. Gilchrist: I can't answer that for you.
Mr. Plummer: Let' 's say that it's 1% and they're going to offer
the City $3,000 as their portion. I think that's fair.
Mr. Carollo: But J.L., you can't base it on the total land mass.
You have to base it on the total bulk.
Mr. Plummer:
on their part.
Mr. Gilchrist:
charging that.
Mr. Carollo:
Joe, I think there needs to be a good faith effort
That's all I'm saying.
I will try to calculate a reasonable basis for
Not on land area, on bulk.
Mr. Gilchrist: No, economic impact.
Mr. Plummer: Fine, I'm not unreasonable, but I'm not going to
take a total kick. My motion is that this matter be deferred
until the next Commission meeting, which is on the 18th, and at
such time that hopefully Rouse will come back with some favorable
impressions and that we will proceed further at that time.
Mr. Dawkins: Second the motion.
Mr. Carollo: There is a motion for deferment. There is a
second. Hearing no further questions, can you call the roll, Mr.
Clerk.
s1 8 ,3u1y 9; 1985
The following motion was introduced by Commissioner Plummer,
who moved its adoption:
(MOTION NO. 85-696
A mo,r [oN ro DEFER CONS I UE"RATION OF THE: APPROVAL
OF AN EXECUTED DEVELOPER'S AGREE MEN`I' FOR DOWNTOWN
AREA WHICH WOULD HAVE PERMITTED CONSTRUCTION 01'
BAYSIDE AND 13AYFRO14T PARK RF.I)EVE:LOPME:NT PROJECTS
TO PROCEED CONCURRENTLY WITH THE SUBMISSION OF AN
APPLICATION F1JR DEVELOPMENT :1PPROV.AI., FOR THE
DOWNTOWN AREA IN ORDER TC> I;NA131,E 'I'EEE ROUSE
CuhlPA141' TO CON S i DER A!J )E'E'ER JF ECONOMIC
PARTICIPATION ON THEIR PAR[' I THE D.R.I.
PROCESS; FURTHER DIRECTING THE CITY MANAGER TO
PLACE THIS MATTER ON THE JULY 18, 1985 AGENDA FOR
RECONSIDERATION.
Upon being seconded by Commissioner Dawkins, the motion was
passed and adopted by the following vote -
AYES: Commissioner :Miller J. Dawkins
Commissioner J. L. Plummer, Jr.
Vice -Mayor Joe Carollo
NOES: None.
ABSENT: Commissioner Demetrio Perez, Jr.
Mayor Maurice A. Ferre
Mr. Plummer: Mr. Gilchrist, one thing further. I want you
before the next Commission to come back. One area does concern
me and I'd like you to have something in writing from Rouse. If
in fact something happens down the road that is not the fault of
the City through no negligence of ours, that something happens,
delays or changes or alters that they're not going to hold this
City responsible. We're going down that spirit or road of
cooperation together. I would like to see something from Rouse
on their part that says, "City..." hey, if the City's negligent,
we pay; I think that's only fair. But that if something happens
down the road, this City is totally not responsible that they
will not hold this City responsible. I think it is only fitting
that I as a Commissioner demand that from them- O.K.?- before the
next Commission meeting. You're representing me?
Ms. Mulinski: When you say hold you responsible for it, I'm not
sure I understand for what.
Mr. Plummer: Debbie, if for some reason down the road the State
Cabinet or for some reason you get held up, because of the
D.R.I....
Ms. Mulinski: Fine.
Mr. Plummer: ....and it is no fault of this City, I want just a
short statement from you, you the Rouse Company, that you're not
going to hold us or sue us for any delays or things of that
nature where we were not responsible for them.
Ms. Mulinski: I don't believe we will have any problem giving
you that, but I'll confirm it.
Mr. Ron Brooke: COMMENTS NOT ENTERED INTO THE PUBLIC RECORD.
Mr. Plummer: Ron, God rest his soul, Father Gibson said, "Black
and white don't lie. Get it in writing."
i
S1 9 July '9, 1985
- - - - - - - - - - - - - - -- --
4 Eh1ERGENCY URD AUTHORIZING ISSUANCE OF $13.8 MILLION IN NEW
BONDS 1N ORDER TO REFINANCE' A'I' LOWER RATE
---------------------------------------------------------------
Mr. Dawkins: Mr. Vice Mayor, while we're waiting, can I get some
information from the Manager on item 1?
Mr. Carollo: Go ahead, Commissioner.
Mr. Dawkins: Mr. M,inriger, in your memorandum, sale of advanced
refund bonds, on the last page you s.3y "William R. Hough and
Company, as the selected managing underwriter, was designated as
co -manager with the firm of Daniels ;ind Bell" right?
Mr. Pereira: That's right.
Mr. Dawkins: Further on you go on to say, "This is the first
time that a black investment banking firm has served as co-
manager for a City of Miami bond sale." Correct?
Mr. Pereira: Correct.
Mr. Dawkins: What does "Additional members of the underwriting
syndicate include Pryor, Govan and Counts, a black investment
banking firm, and Southwestern Capital Markets, an Hispanic
firm." What does this mean?
Mr. Pereira: I had trouble listening to your last part of the
question. I had conversation here going on my right. I'd
appreciate....
Mr. Dawkins: I know that you are Cuban and I'm Black, and that
we do have a cultural difference, but I'll go through it again
and if you....
Mr. Plummer: Would you like a Gringo to mediate for you?
Mr. Pereira: I heard the first part and then, you know, I had
conversation here and I couldn't listen to what you were going
on.
Mr. Plummer: The cigar smoke was in his ear.
Mr. Dawkins: I understand clearly about Hough and Bell. I
understand that clearly. What does "additional members of the
underwriting syndicate" mean? And then you name them. What does
that mean?
Mr. Pereira: When a sale is done, you have a co -manager, you
have basically underwriters that will take the lead as co -
managers of the issuance. Then you have a syndicate of other
investment banking firms, which distribute the bonds. They get
the bonds and they sell them and obviously they make a profit out
of the net. We work very diligently in order to get
participation also of a Hispanic firm as part of the syndicate.
Mr. Dawkins: That's my question to you, what will be the
monetary split of this contract? I'd like to know what
percentage of it Hough is going to get and then if Bell has to
split his percentage with the other people, because that is the
minority firm, or if Bell is going to get something, what is... I
mean, tell me what the split is here or what we're doing.
----------------------------------------------------------------
NOTE FOR THE RECORD: Commissioner Demetrio Perez entered the
meeting at
0 July 94 1985
MR
- - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Mr. Pereira: Let me ask Assistant f�taniger, Randy Rosehcraratz, to
read the split for you, Randy.
Mr. Rosencrantz: Commissioner Dawkins, in the sale of bonds,
there are several ways that underwriters get reimbursed for it.
Basiceilly, most underwriters get reimbursed as a certain fee per
bond, per each bond that they sell.. In this particular issue,
since Daniels and Bell -.ire co- menagers of the issue, they've
assumed responsibility f:)r about 30% of 1-he issue and will get
about 30% of the management fee associated with this particular
issue.
Mr. Dawkins: All right, then what will. Pryor, Govan and Counts,
and what will
the Hispanic firm and Sotithwestorn Capital
IM;irkets
get?
Mr. Rosencrantz: The other firms
that you've listed there
will
be paid based
upon the number of
bonds that they are
actually
able to place.
By being in that
selected group they
have an
advantage over
other underwriters because they get first
shot at
the particular
bonds.
Mr. Dawkins: That won't work with me. I don't know about the
rest of the Commission, but that's not going to apply with me.
You just tole me... what I interpret from what you're saying is,
Hough will get 70% and Bell will get 30%. Now, in the event that
we feel benevolent and we happen to throw a crumb to Pryor,
Govan, and Counts, or we throw a crumb to Southwest Capital
Market, then they will participate to the tune of the crumbs that
we threw them.
Mr. Rosencrantz: Let me explain what the process is,
Commissioner Dawkins, because it doesn't work out quite that way.
The process is that we will receive a check from William R. Hough
and Company to pay us for the bonds. The City gets paid for
that. Where the co -bond -managers come in and the other
underwriters come in is in the actual selling of those bonds,
after the City has been paid for them. The way this particular
deal is structured, it does give the advantage to Daniels and
Bell in terms of being the co -manager of it. It gives advantage
to the other two minority firms because they have first
preference on bonds that are going to be available in the market
to sell. The other factor that you have to consider it's
required for participation in this sale as with any other sale a
certain amount of capital. The firm has to have a certain amount
of capital in order to participate in the bond sale because the
City requires the money up front when the bonds are sold, so some
of the firms that are listed or some of the firms that may be
available to sell bonds simply cannot participate because they
don't have the capital to do it, and them is rD way that we can
structure the bonds to provide that capital tc them in order to
accommodate and for greater participation. Had either one of the
two firms that you mentioned particularly had a greater amount of
capital and would have indicated a willingness to put that
capital into this issue, perhaps the situation could have been
different.
Mr. Dawkins: question to the Manager, Mr. Manager, why would you
submit names to me telling me that these people are available to
participate in the venture when they don't have the capital.
Mr. Pereira: They're participating.
Mr. Dawkins. No, they are not participating, Mr. Manager. �€
they don't have the money....
Mr. Pereira; You have two different situations here.
s1 ll July 94 1985
M L .
Dawkins: Maybe now I'll nerd an interpreter, but go ahead.
4r.
Pereira: The senior
investment banker,
who is involved in
the
dec11. .and commits himself to the purchase
of the bonds must
have
the capital to make
that i)nc.e the ,lwrlr 3
is dune, must have
the
vai Lab1.r? cap1 t�i 1. to
cp111" i ll yin 3 ;),l'y' ` ilt?
i, l ty 1 llm�_'dlr3telyt
tIien
tl1F_'y Lurn aroutld ,ltid
th"y �3LStr111i_lt4, ;Iri•3
th"}' 1>lac e those
bond.;
with the customers.
T lalr.'s wily we're ,,,iyiI1(j
that In Order
r
to be a senior man,at_aer, yol-t rillst lI-IV(? thrit ;itld _)t apitrjl. What
we have done is we have Lticlipjt.!11 li;,3 i f ir111 ana tht'
rest of t11t? syndi ca t_t? th<.lt w i L 1 be (et t i ng bowls lnd p lacing them
With customers We 111VF' otllt'r f 1r111S thrl 0t-11t-rW1Se COUld not
come_ i, (I 111d b,? 111 1 lienl0r Ina ag('r. i111_ WI I.1 11;1V1' tC) w•llt an,3
I)uy these bonds ont- in the open mR lrkC!L rat -her than to have �i
preft,rence for us, SO is in opportunity for the firms to have
first shot at those bonds.
Mr. Dawk ins : What percerit,-1ge of the total bonds wi 11 be
earmarked for the other 13lack firm and the Hispanic Eirm?
Mr. Pereira: Let me ask Michael GefErarcl, our financial .advisor,
to address th.3t for a minute.
Mr. Michael Geffrard: Mr. Commissioner, my name is Michael
Geffrard. I'm representi.rig the Eirm of James J. Lowrey and
Company. We're financial advisors to the City. We have been
financial advis:ors on a number of different issues. If I could
just perhaps spea1, very briefly about the way in which
underwriting syndicates 1r12 pi -It together.
Mr. Dawkins: Hold it, let me cut YOU short. See, we're on a
special meeting. I don't want a dissertation on why and how it
was dons' . All 1 need to know is how can these two f i rips
participate? That's all I need. If you can tell me that, sir,
that's all I need.
Mr. Geffrard: I'll tell you that. The co -manager, Daniels and
Bell, had a commitment to purchase certain number of bonds. The
members of the syndicate in the first tier, which included Pryor,
Govan, and Counts and Southwest Securities....
Mr. Dawkins: Wait a minute. What tier is Bell on?
Mr. Geffrard:
Mr. Dawkins:
Mr. Geffrard:
Mr. Dawkins:
second tier.
They are managers on the very top tier.
They're on the top tier with Hough.
That's right.
They're on the top tier. Now we talk about a
Mr. Geffrard: All right, now, that is comprised of the managers,
W'lliam R Hou h and Daniels and Bell. Now on the first tier of
1 g
the syndicate, we have Southwest Securities and Pryor, Govan, and
Counts, who made commitments to the City to purchase up to
$250,000 in bonds. That was the extent of the capital they had
available to commit to this deal. So that's what was done. So
they received fall commitment from the City to sell bonds to the
extent of their capital, the capital they had available, to
participate in this deal. So they got everything that they could
possibly handle is what I'm trying to say to you.
Mr, Dawkins: So the two of them between them will share and they
will sell $250,000 of these bonds.
Mr, Geffrard: Apiece,
Mr, Dawkins: Apiece, so they will see a half a million,
sl 12 July 9, 1985
-)
Mr r7effrard4 That is what they are permit tee L, (30.
Mr. Dawkins: So therefore, they row f r (Din
participated in this, they will grow.
Mr. GQf frf-,rd: That's r i gh t -
having
Mr. Uaw'kins: Thank you, sir. neat is all L was trying to get6
Thank you, thank you, Mr. Manayer.
Mr. Carollo: Any further :juestions from the members of the
Comini ss ion? Commissioner Perez, we deferred item 4 and we still
have to do 1, 2, and 3. We're still on I.
Mr. Perez: A1)01_1t t - 11t2 1)()11,1 issue,I wo,1 Ici I jl,t3 to ask a few
questions Lt.) the adinini.3Lr,itiori- irst, Nlr. "lan,-iger, I sent you
a inemo Yesterday. First I rec,,'ivf31 1- - on Friday as all
the other members of the i,ommissiorl oIi Friday about t' ): 0o o'clock.
I have the answer to the inemo. I (Ion't E,,jiow if the other members
of the Commission llIve copy of
the mo-lat-D that you a(ldressed to
me. Do they have ally cc-)PY?
Mr. Pereira: We tried to get the memo to You. We received your
memorandum yesterday at 5:15 .in(-] we tried to address each of the
issues that you asked to....
Mr. Perez: Yes, but the other members of the Commission have a
copy of tht-e memo that YOU Sent Me today at 12:13? 1 think that
is proper, you know.
Mr. Plummer: The standard policy is when one receives, we all
receive.
Mr. Pereira: We will give you copy of it. We were trying to
meet your request.
Mr. Perez: I would like the other members of the Commission have
the opportunity to share the answers to the questions that I
make. Do you have any copy available?
Mr. Pereira: We'll get them for you.
Mr. Perez: On your memo, I think that you tried to explain that
we have a possible savings of a million hundred thousand dollars.
Mr. Pereira: one million one hundred thousand dollars, yes sir.
Mr. Perez: That is the savings that you project?
Mr. Pereira: That's right.
Mr. Perez: In the memo that I received today and in the
different answers that you gave me, you said that we have cost
additions of $208,000.
Mr. Pereira: That's right.
Mr. Perez: You have a 3% premium.
Mr. Pereira: in order to retire the bonds, we pay a 3% premium,
This is just like a pre -payment if you have a loan on a bank and
you go to pre -pay the loan and they charge you a dollar, there is
a pre -payment clause in here.
Mr. Perez; That is the 3% or the 10.37
Mr. Pereira; 3%, yes.
Mr, Perez; That means about three hundred ten, three fifty,
151 13 July 9, 1985
YYesj whatever the calculation is.
Mas o menos.
The expense as per contract of purchase is $339#618.
I f you're adil ing up, yes, O.K.
Mr.
Perez:
That m(�ans that if you ia(3<l
the two hundred eight plus
the
three
hun(lre:3 ten plus the three
I<<.indred thirty nine, you
have
total
expense of $857,908. That's
right?
Mr. Pereira: That's right. Go ahead, yes.
Mr. Per,_•z: If you subtract from what you call the possible
savings....
Mr. Pereira: Go ahead.
Mr. Perez: You are not in the position to clarify? Are you in
the position to clarify this issue?
Mr. Pereira: Yes, sir. You know, the cost of the... you know,
all of the cost th.zjt you hive enumerated there....
Mr. Carollo: Commissioner, can you repeat the question again? I
didn't understand it. The question you were asking; I got lost.
Can you repeat it again?
Mr. Perez: That I want a clarification.
Mr. Carollo: On what question?
Mr. Pereira: The million two savings, Commissioner, is after all
of these expenses that you have enumerated. We calculated all of
this in our refunding. The million one savings to the City is
after all of these expenses have been calculated.
Mr. Perez: After all these expenses?
Mr. Pereira: Yes, sir. You are looking at an award, a refunding
bonds that were on the market at 13.6% and we're getting them now
at 8.9 so there is substantial savings on the percentage of
interest that we're paying. Consequently, that's why you realize
you know, this amount of savings over the period of time. The
expenses are calculated into the refunding and the $1.1 million
savings after all of these expenses have been calculated. ,
Mr. Perez: That's what I want to clarify for the record.
Mr. Dawkins: Let me piggy -back on what you said.
Mr. Perez: You said that we have savings of a million hundred
thousand dollars after we deduct all the expense.
Mr. Pereira: Exactly.
Mr. Perez: It's impossible to deduct the expense from the
million ten, no?
Mr. Pereira: No, you cannot deduct them. They are included
already with the inclusion of the expenses. You realize a
savings of $1.1 million.
Mr. Perez: O.K., I would like to clarify that for the record,
because in accordance with what I understood, I think that the
expense was to be deducted from the one point one. But that's
not true, O.K. That's my question. Now, about the minority
participation, the ordinance that this Commission approved a long
time ago, we mentioned that we have 50% was the spirit of the
sl 14 ,July 9, 1985
i
memo, no? To have the Blacks and Latins participation, but we
are supposed to have also local participation. Do we have any
kind of local participation in this issue?
ti]r: Pereir-r: In terms of. local, 10 yo1_1 mearl the City of Miami"?
William R. hough is i Florida firrn and we lh,avc> their. underwriting
counsel is Local, it's Fine Jacobson. We don't have any Local...
the only loc:►l. firm investment b-in':iriy firm that we have is,
well, it cj,::�pericjs whit_ yc_�u (-otisider Local. If yo,.l h,Iv,� the big,
national f i rrns they have .ln O f. LCke herF2. 1 f you w_int_ to consider
them local, yoi.i consider them Lc�c�cl. I don't t.l-ririk any of these
firms ar.e local in the sense t)I,:'t they're: from i•liaini, but
certainly WiLIiam R. iiouyil is the le,kdi rig firm in the State of
Florida in terms of doing municipal finar►ciriy.
_ Mr. Perez: P �rsoni-illy I understand Locally business from the
area of the City of Miami. In this case, we don't have anyone.
No?
Mr. Pereira: No, that's if you want to consider, no, these firms
are not from the City of Miami.
Mr. Perez: Mrs. City Attorney, that means that we are in any
violation of the rule or the ordinance or it doesn't have any
inconvenience?
Mrs. Dougherty: No, sir, Mr. Commissioner, that is a goal that
we have in mind, but it is not a violation.
Mr. Perez: It is not a violation. About the daily newspapers,
according with the definition that you have for daily newspapers,
you only include the English newspaper. Why we don't have
opportunity to give participation to the Spanish daily
newspapers.
Mr. Pereira: Newspapers in what issue, in what sense?
Mr. Perez: Newspapers according with the definition that we have
here, I think it's in page I-3, you said what is daily
newspapers, it only mentions English newspapers.
Mr. Pereira: We advertise on the newspapers according to the
policy that the City has based on circulation. I don't know
specifically what you want to refer to....
Mr. Carollo:
Commissioner, can I try
to save some time?
If your
intention is
to vote against this, I
would appreciate it
if you
let us know
now and save some time.
Since you well
know, it
requires a four -fifths vote to pass it. I don't want to be here
another hour
just to find out at the
end that you are
going to
vote against
it anyway. If that is
the case, I would
like to
adjourn the meeting and bring it up again
on the 18th.
Mr. Perez: I think that my clear intention is to try to clarify
some of the questions that each member of this Commission has the
right to ask. After I have received the back-up for this meeting
last Friday, after I have a memo that I make yesterday and I
received the answer at 12:13, I think each member of this
Commission has the right to clarify all the questions. I don't
have any thing in mind in order to have anything against the
project, but I think that the people of Miami, in this case,
through my questions, deserve the opportunity to clarify some
issues.
Mr. Carollo: Commissioner, I hope that it's been clarified for
the people of Miami.
As to me, I
frankly don't give a damn if we
have a Seminole, an
Alaskan, and
a Chinese or whatever
we have,
as long as we get the best price
available to the City.
I think
a savings in excess
of a million
dollars speaks really
well for
itself. Frankly,
the minority
participation that we
have is
sl 15 J41y 9, 1985
.. _. . ...
really irrelevant as perceived locally, becanse the minorities
from another part of tllF! country .as to the 131-ie-,k mitority and to
the Hispanic. minority, is probably Mexican-AlTierican, which don't
amount to even haLf of one percent of the Hispanic population of
the City of Miami..
Mr. Perez: Tha"s your �t�tlCe;Ci1, but l have my own cotice4rn About.
yr. lt-lan�iyer, WOUI(I �'(-)Ll e_'Xpi lilt Isle Will' +IO We 1viv%? the hurry that
we have t(.) approve? this i.ssue� tc,(Jay?
Mr. Pereira: eV3 I tee you ill my 1,1e21n,-)r,lnelum.
Has the
memo been pas-Sed ar,)urld? Yes, thank YOU. T}le reason that
we are
trying to maintain t:he July Loth deadline is `wo-f(:�le.i.
One is
going through the r.efundiny 1)roe_,es we helve, to comer into
the
market at a t i mf? wtler, we }l-iv,� l he2 1 1- of r w i ndc�w 1 I the
rites
ire at oleic lowest. It is impe?r3tive Ulat We flit that
window,
because_ m..lrket ch.:inges arld ilterest rates change- on a day
to clay
basis. In order for us '-0 mciximi.ze gains in this transaction
it
must be Completed before hugest Ist, because if we delay
it, oil
August the lst we must make lrlother interest payment: on
the old
bonds. Before t}lis tr,illslction yet-5 compl��tee3, wed need
20 days
in Advance in order to buy S.L.G. securities to cover the
eascrow
requirements of the oLd boned issue. So if you b.icked off
and you
look at the 20 (lays and the de.ldL ine of August I.st, when
we wi 11
have to make a payment of interest on t}e other bonds,
it's in
our best interest in order to save that_ pay,nent to i)e able to
move on the issue today. T}iat's wily I ;iskeea on the 20t1l
tilat we
hold this speci•ll 'Rectiny.
Mr. Perez: U.1�., but at the time that we made the projection for
the bond issue, the interest was at 9.5, at that time.
Mr. Pereira: No, we said it'll be somewhere about 9%. I believe
the pricey in the interest we got was 8.971, which is much better
and we are retiring bonds which are at 13.6.
Mr. Perez: But I think that the interest today is about 8.8 and
according to the statement that you make one statement and I
think Mr. Rosencrantz also made a statement about a bright future
for the interest that will be down in accordance with your
prediction.
' Mr. Pereira: What I'm saying to you is that today we know that
the interest is low. If I could predict where the ►market is
going to be tomorrow, I'd be a few bucks richer.
Mr. Plummer: We're not worried about you being richer. We're
worried about the City being richer. You're going to buy cheap
cigars regardless.
Mr. Pereira: That's right. If we wait, we might get into a
situation where the interest rate will go up and that will be
disadvantageous for us. It would riot be advantageous. Plus we
have the deadline of August lst, if we don't do this transaction
then we're going to have to make another payment on the old
bonds.
Mr. Carollo: Commissioner, we have the lowest interest rates
right now that we have had in five years. Tomorrow might be a
different story. In essence, the bottom .line is that we are
presently saving over a million dollars for the City of Miami
over that 20 year period. If I may, I'd like to give the Chair
to Commissioner Plummer and make a motion to approve the
emergency ordinance, item number 1.
Mr. Plummer: There is a motion made. Is there a second?
Mr. Dawkins; Second for purposes of discussion.
$1 1-rp JP1y 94 1985
'R
Mr Plummer: Second for discussion. The Chair recognizes
Commissioner Dawkins.
Mr, Dawkins: Mr. Manager, it says that you have outstanding
$10, 345, 000 ouLstrinding, is that correct?
Mr. Pereira: Yes.
Mr, Dawkins: And we're going to sell $13,800,000 bonds.
Mr. Pereira: That's right.
Mr. Dawkins: Mr. Rosencrantz, explain to me how we get from ten
three four five to thirteen eight and what's going to happen to
the money.
Mr. Rosencrantz: Mr. Commissioner, the original $10.3 million
that's outstanding, they have a provision in called a call
provision. That provision says to the bond holders, when you buy
this bony], you will be .able to hold it for at least ten years,
eight years, wh,_itever that caLL provision djite is. The call
provision on those earlier bonds comes to, 1 think, in 1991.
Therefore, for us to refund those bonds, we have to put in escrow
not only the principal amount of those bonds, but the interest
those bond holders would e.irn on the bends between now and 1991.
Mr. Plummer: Beyond 3; cost?
Mr. Rosencr�Antz: No, you have to put the 3% in, plus whatever
interest he would have approved from now until that particular
period, because, as you know with bonds you are guaranteed a
certain return at a certain date. There's no way that we can
change that. In order to refund, the federal requirement says
that you can refund, but you must put that money in an escrow
account so that those bond holders when their date comes, the
money is there to pay them. Even with doing that, we still save
money by borrowing money to pay those bonds off.
Mr. Plummer: But Mr. Rosencrantz, in this memo of the Manager it
says that if we leave this bond issue as it is today, it will be
a cost of thirty-three eight. If we remake the bonds today, out
over the period of the life of the bonds, it will be thirty-two
seven.
Mr. Rosencrantz: The difference is....
Mr. Plummer: That is only a million one total.
Mr. Rosencrantz: That's the net savings that we've talked about.
Mr. Plummer: Oh, that's net.
Mr. Rosencrantz: Yes.
Mr. Pereira: Net savings.
Mr. Plummer: Wait a minute. Is one figure net and the other
gross?
Mr. Rosencrantz: No, they're both net.
Mr. Plummer: How can there be a net and a gross figure on the
bonds that are already issued? That can't be, sir. That's got
to be the 33.8 has got to be the gross of what it will cost to
borrow that amount of money.
Mr. Rosencrantz: That's right, I'm sorry.
Mr. Plummer: One is the gross figure. The other is a net.
What's in between is what Commissioner Perez is asking is a valid
question.
sl 17 July 9, 1985
Mr: Rosencrantz: The way the calculations is performed, the two
Plumbers you are looking at are gross numbers, included in the
second number in the refinancing number is alL the cost of doing
this refinancing, the expenses that iommissioner Perez....
Mr. Plummer: Includitzg the esCrOW?
Mr. Rosencrantz: In_ludln3 the es( --row, yes.
Mr. Plummer: Where do we find that escrow account cost.
delineated here... excuse me, I'm sorry, you are asking...+
Mr. Dawkins: Go ahead, J.L.
I see
Mr. Plummer: You show and de t ineate the 20s3, 000. You refer to
the 3s at approximately, as I recall, 300,000. The reissuance
you've given a figure for th,it, but I don't find in this memo the
cost fiictor for that escrow. Look, I'm hapPy with the savitngs of
a half a mill. ion do11.3rs, but I just think that we have to h..lve
all the correct information to know exactly. Mr. Manager, may I
make a statement to you? it's nice to be friend_Ly with the
press, but this is whit happens when the press gets the
information before we do. Keep th�it in mind in the future. You
Might have less problems.
Mr.
Pereira:
When
did this get on the press?
Mr.
Plummer:
I'll
explain it to you.
Mr.
Dawkins:
Don't
be upset, Sergio, it didn't start with you.
The
manager
before
you had the same problem.
Mr.
Carol lo:
And the one, b(::fore that.
Mr. Rosencrantz: Mr. Plummer, I think I can answer your
question. In the official statement, of which you have a copy,
the numbers are detailed out specifically as to how the money
will be applied. We will need to put into the escrow account
$13,006,901.25. That's the amount that we have put into the
escrow account to cover those bonds that are outstanding.
Mr. Plummer: So you're saying that is 'lot a cost factor. It is
a calculated factor that is in the gross amount of the recent
bonds. The memo is not that clear, test me....
Mr. Perez: Mr. Rosencrantz, the total amount is $13 million. We
have a three million difference 13,8, no? But that's three
million difference. We have an expense of $850,000. How do you
distribute the other difference of about two million something?
Mr. Rosencrantz: If I could ask you, Commissioner, to look at
your stack of data that we provided to you to the document that
looks like this. It's called the official statement. If you
look down through the stack of documents until you get to this
particular document.
Mr. Plummer: Mr. Rosencrantz, the simple answer sir, first
number is gross, the second one is net. Unfortunately, the memo
doesn't spell it out that clearly.
Mr. Rosencrantz:
If
you look at
that particular document,
Commissioner Perez,
and
if you look
o'1 page 7, it gives you a
complete breakdown
of all of the sources of money and all the
money coming in to
this
transaction and then below that it gives
all the money going out.
I think if
you look at that, you can
pretty well answer
your
question.
Mr, Plummer:
S1
Is there any further discussion on the motion?
M
July 94 1985
4R
1 have none:
Commissioner_ Dawkins, any further discussion?
Call the question.
Mr.. Plummer.: Commissioner Perez, do you have any further
question? Retired City Clerk, wotild you call the roll, please?
Reed the ordinance.
Mrs. Dougherty: I'd like to mako a notation for tile record that
section ten has been .amended to insert that the ordinannce cannot
be amended wi tiiout concurrence (roin M.13. I .A. , which is the
insurance company that insures the bonds.
Mr. Plummer.: Is that a substantial change or is that a minor
charnye?
Mrs. Dougherty: It's a minor change.
Mr. Plummer: Thank you for the
the motion clear and understood?
roll.
AN ORDINANCE ENTITLED -
record. Read the ordinance. Is
No further discussion, call the
AN EMERGENCY ORDINANCE AMENDING AND RESTATING
ORDINANCE NO. 9291 ADOPTED BY THE COMMISSION
OF THE CI'rY OF MIAMI ON JULY 8, 198L AS
AMENDED AUTHORIZING; THE ISSUANCE OF NOT
EXCEEDING j13, 720, 000 AGGREGATE PRINCIPAL
AMOUNT SPECIAL ORLIGATIor1 30NDS 0c. THE CITY
OF MIAMI, FLORIDA, FOR rHL PURPOSE OF PAYING
AT THEIR RLsPL.,c,rl`JF, MATURvrLES OR REDEEMING
THE OUT S'PANI)1NG PARKING RE' VL•,NUE L30NDS
(ADDITIONALLY SECURED 3Y NON hr) VALOREM
REVENUES) SERIES 1981 ON THE, CITY, ISSUED
PURSUANT To ORDINANCE NO. 9291, AS AMENDED,
AND PAYING THE COST )F ISSUANCE OF SAID
BONDS; PROVIDING FOR THE PAYMENT OF SUCH
BONDS AND TIIE INTEREST THEREON FROM THE NET
REVENUES OF THE OFF-STREET PARKING FACILITY
FINANCED FROM THE; PROCEEDS OF THE SERIES 1981
BONDS AND CERTAIN DESIGNATED NON AD VALJREM
REVENUE SOURCES OF THE CITY; DESCRIBING THE
TERMS, SECURITY AND OTHER PROVISIONS OF THE
BONDS; SETTING FORTH THE RIGHTS AND REMEDIES
OF THE HOLDERS OF THE BONDS; AND PROVIDING
CERTAIN OTHER DETAILS RELATING TO THE
ISSUANCE OF SUCH BONDS, INCLUDING THEIR SALE
THROUGli NEGOTIATION; PROVIDING SEVERABILITY;
DECLARING THE ORDINANCE AN EMERGENCY MEASURE;
AND DISPENSING WITH THE READING OF THE
ORDINANCE ON TWO SEPARATE DAYS.
Was introduced by Commissioner Carollo and seconded by
Commissioner Dawkins, foi adoption as an emergency measure and
dispensing with the requirement of reading same on two separate
days, which was agreed to by the following vote-
AYES: Commissioner Miller J. Dawkins
Commissioner J. L. Plummer, Jr.
Commissioner Demetrio Perez, Jr.
Vice -Mayor Joe Carollo
NOES; None.
ABSENT: Mayor Maurice A. F,erre
sl 19 3u1y 91 1985
MIR
Whereupon the Commission on motion of Commissioner Carollo
and seconded by Commissioner Dawkins, adopted said ordinance by
the following vote -
AYES: Commissioner Miller J. Dawkins
Commissioner J. L. Plummer, Jr.
Commissioner Demetrio Perez, Jr.
Vice -Mayor Joe Carollo
DOES: None.
ABSENT: Mayor Maurice A. Ferre
SAID ORDINANCE WAS DESIGNATED ORDINANCE NO. 10014:
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.
TAPE 3
--------------------------------------------------------------
5 IRREVOCABLY CALLING $9,295,000 AGGREGATE PRINCIPAL AMOUNT
OF THE PARKING FACILITIES REVENUE BONDS.
Mr. Carollo: Item 2, is there any questions. It's companion to
item 1.
Mr. Plummer: I'll move it.
Mr. Perez: Second.
Mr. Carollo: It's been moved and seconded. Hearing no further
discussion... it's a companion to item 1. Call the roll, Mr.
Clerk.
The following resolution was introducedby Commissioner
Plummer, who moved its adoption:
RESOLUTION NO. 85-697
A RESOLUTION IRREVOCABLY CALLING $9,295,000
AGGREGATE PRINCIPAL AMOUNT OF THE PARKING
FACILITIES REVENUE BONDS (ADDITIONALLY SECURED BY
NON AD VALOREM REVENUES) SERIES 1981, DATED MARCH
1, 1982, WHICH MATURE ON AUGUST 1, 1993 THROUGH
AUGUST 1, 2005, INCLUSIVE, AND AUGUST 1, 2008,
INCLUSIVE, FOR REDEMPTION ON AUGUST 1, 1992, AND
DIRECTING THE ESCROW AGENT PURSUANT TO THE
ORDINANCE NO. 9291, ADOPTED BY THE CITY
COMMISSION OF THE CITY IN JULY 8, 1981, AS
AMENDED, WHICH AUTHORIZED THE ISSUANCE OF SAID
BONDS, TO PUBLISH NOTICE OF SUCH REDEMPTION AND
TO TAKE SUCH FURTHER ACTION AS MAY BE REQUIRED BY
THE ESCROW DEPOSIT AGREEMENT BY AND BETWEEN THE
CITY AND BARNETT BANKS TRUST CO., N.A.,
JACKSONVILLE, FLORIDA, AS ESCROW AGENT AND BY THE
ORDINANCES AND RESOLUTIONS AUTHORIZING SAID
PARKING FACILITIES REVENUE BONDS.
(Here follows body of resolution, omitted here
and on file in the Office of the City Clerk.)
Upon being seconded by Commissioner Perez,
w4s passed and adopted by the following vote -
the resolpB-`
, my 9, 1985
AYES Commissioner Demetrio Perez, Jr.
Commissioner Miller J. Dawkins
Commissioner J. L. Plummer, Jr.
Vice -Mayor Joe Carollo
NOES,. None.
ABSENT! Mayor. Maurice A. Ferro
--------------
6 RESOLUTION APPROVING PRELIMINARY OFFICIAL STATEMENT RELATING
TO THE SERIES 1985 BONDS
Mr. Carollo: Item 3, coinpinlon to items 1 and 2.
Mr. Plummer: Move it.
Mr. Perez: Second.
_ Mr. Carollo: Moved and seconded. No further discussion? Call
the roll.
The following resolution was introduced by Commissioner
Plummer, who moved its adol)tion:
RESOLUTION NO. 85-698
A RESOLU'ION PROVIDING FOR THE ISSUANCE OF AND
FIXING AND DETERMINING 'PHE DATE, PRINCIPAL
AMOUNT, MATURI'PiLs, INTEREST RATFS AND REDEMPTION
PROVISIONS OF SPECIAL OBLIGATION BONDS SERIES
1985, JN THE C111Y OF MIAMI, FLORIDA, AUTHORIZED
IN THE AGGf2EGi�Tf. PRINCIPAL AMOUNT OF 1JOT
EXCEEDING $13,720,000 PURSUANT TO ORDINANCE NO.
10014, DULY ENACTED BY THE CITY COMMISSION OF 'PHE
CITY OF MIAMI ON JULY 9, 1985, PROVIDING FOR THE
DETERMINATION OF AMORTIZATION RLQUIREMENTS OF ANY
TERM BONDS; DESIGNATING THE BOND REGISTRAR,
PAYING AGENT, ESCROW AGENT AND FISCAL AGENT FOR
THE SERIES 1985 BONDS; DETERMINING THE NEED FOR A
NEGOTIATED SALE OF SAID BONDS; APPROVING AND
AUTHORIZING THE EXECUTION AND DELIVERY BY THE
CITY OF A BOND PURCHASE CONTRACT FOR SAID BONDS;
AWARDING THE SERIES 1985 BONDS; APPROVING AND
AUTHORIZING THE EXECUTION AND DELIVERY OF AN
ESCROW DEPOS1,r AGREEMENT Bh"I'W1�EN THE CITY AND THE
ESCROW AGENT, PROVIDING FOR THE DISPOSITION AND
TRANSFER OF THE MONEYS AND SECURITIES ON DEPOSIT
IN THE FUNDS AND ACCOUNTS ESTABLISHED FOR THE
OUTSTANDING BONDS; APPROVING AND RATIFYING THE
DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT
RELATING To THE SERIES 1985 BONDS; AUTHORIZING
THE EXECUTION, DELIVERY AND DISTRIBUTION OF A
FINAL OFFICIAL s,rATEMENT; AUTHORIZING THE
EXECUTION AND DELIVERY OF CLOSING DOCUMENTS; AND
PROVIDING AN EFFECTIVE DATE.
(Here follows body of resolution, omitted here
and on file in the Office of the City Clerk.)
Upon being seconded by Commissioner Perez, the resolution
Was passed and adopted by the following vote-
si 21 July ,9, 1985
20
Commissioner Demetrio Perez, Jr.
Commissioner Miller J. Dawkins
Commissioner J. L. Plummer, Jr.
Vice -Mayor Joe Carollo
None.
Mayor Maurice A. Ferre
DURING ROLL CALL:
Mr. 5a'wkins: Under discussion, these bonds will be secured with
what, Mr. Manager? The utility service tax?
Mr. Pereira: Water and gas utility service tax.
Mr. Dawkins: How much was taxed out of this fund during the
interim when we were in between managers to fund social programs?
Mr. Pereira: I believe the figure is $115,000.
Mr. Dawkins: $150,000.
Mr. Pereira: Fifteen, fifteen.
Mr. Dawkins: A hundred and fifteen?
Mr. Pereira: Yes.
Mr. Dawkins: Mr. Rosencri_ntz, when this would happen, I'm one of
the ones who sit up here ,and told you that we shouldn't be doing
that. Now, you're here i_e l l ing me that those same funds that we
dipped in to and took $115, 000 out of are supposed to guarantee
this bond issue. I would hope that this administration and this
Commission would see fit riot to dwell into this fund, which the
bond holders look pit as security for our bonding to take money
out for social programs. I vote yes.
7 URGING ZONING BOARD TO CONSIDER A SPECIAL MEETING FOR
BILLBOARD APPLICATIONS
Mr. Carollo: Mr. Knox, if you would come up here, please. Mr.
Knox requested that he would like to address the Commission.
Mr. George Knox: Thank you very much, Mr. Vice Mayor.
Mr. Plummer: Excuse me, if what you are going to address the
Commission takes action, the Vice Mayor will have to close the
first meeting and....
Mr. Carollo: We'll do that, I just wanted him to inform you all
what he wanted to discuss. The Commission can make up its mind
if they want to hear him or not.
Mr. Knox: Thank you, for the record, my name is George Knox.
I'm an attorney with offices at 4770 Biscayne Boulevard. I'm
here to request that the Commission direct the chairman to
conduct a meeting of the Zoning Hoard for the purpose of
considering and reviewing the applications that it will have
received pertaining to outdoor advertising. The Code does
provide that the Zoning Board serves to accomplish the objectives
and directives of the City Commission. I'm here to ask the
Commission to adopt a motion which would direct the chairperson
to schedule a meeting during the first week in August for the
specific purpose of considering these applications.
S1
?2
July gf 1985
Mn Plummer: Excuse me, George, you are- wolf aware that no
b -irtis meet during
the month ref August.
Mr.
Knox: There is
a provision in the
code that tiie Chairman can
call
a meeting it
aray time. Tile re
is no regularly scheduled
meeting
during the
month of Au�4ust.
Mr.
Plummer: Wli;it
would be, so thrtt there
wo,11-d be no deviation,
what
would be wrong
with the chairman
calling <a meeting in the
late
July?
Mr. Knox: Well, there is .a problem with notice. There has to be
a ten day published notice prior to the time that_ they conduct
these public he.irings. They meet ,)n the L5th of July, and of
course thcar,-3 is no time for that. The next- meeting would not
therefore be until. September unless a special meetiny is called
for the purpose of c_orasideririt3 t}iese �11)plicitions. it n-Ay be
well to have diem proceed in that manner so that they would
exclusively (3eal with th:asF, outdoor advertising applications and
not have that interfere with their regular icic.ncica:�.
Mr. Plummer: I still. don't sect why thQy couLdnIt hold it, say
the 30th of July rind sti 1 L have the ten day riot -ice.
Mrs. Dougherty: They could.
Mr. Plummer: George, I just got a problem. I would hate for
anybody to tell me ;is a Commissioner that I got to meet in August
because that's when I set aside for my own time. I don't see a
thing wrong with say, you schedule a meeting or ask a motion to
be directed that on July 30th; them is still ten days' notice.
Mr. Knox: If the staff is satisfied that the meeting could be
properly noticed, I'm certain that would riot be a problem.
Mr.
Plummer: I just don't
think its
right to .isk them to
deviate.
Mr.
Carollo: Will there be
enough time
to call a meeting on the
30th
or 31st?
Mrs.
Dougherty: All that is required is
ten days notice for the
items
to be on the agenda before the 31st.
— Mr.
Carollo: 5o there will
be sufficient
time the 30th or 31st.
Mr.
Perez: Did you contact
the chairman
of the Zoning Board?
Mr. Knox: Well, we've been in informal contact with the chairman
and he appears disposed to calling a meeting if that is the will
of the Commission.
Mr. Plummer: George, let me tell you exactly where I am. I
would not be opposed to voting for a motion urging the chairman
of the Zoning Board to call a meeting before the end of July for
the purpose of whit you .isked. I have no problem with that. But
if you go into August, I think that's unreasonable.
Mr. Knox: Very well, and would you please also insure that the
staff....
Mr. Plummer: I didn't say I was making the motion. I said I'd
Vote for that.
Mr. Knox:
requirements
appropriate.
Mr, Plummer:
And would you please insure that the notice
would be satisfied, should... that they be
That's their responsibility, not ours,
23
July 9, 1985
Mr, Carollo: Let me adjourn the special Commission meeting that
we just head and I guess the appropriate way of c.3oing, Madam City
Attorney,
purpose to now call. a SI)ecia}. Commission meeting for the
put:pose of disc!.lssing tile request m,lcle here to US. Correct?
Yes, sir, Mr. vice Mliyo r.
idrS. Douy}lart.y:
Mr. Carollo: Now, based on the request that Mr. }:nox has made of
this Commission, is there: a mat ion from this Commission of
instructing the City of Mirxmi Zoning Board to hold a special
zoning meeting for the purpose of discussing the billboard
applications orl the List week of ,July.
Mr. Plummer: No later than.
Mr. Carollo: It would }hive to be in the last week of July, J.L.,
t}le ten days.
Mr. Plummer.: 1985.
Mr. Dawkins: So move.
Mr. Carollo: Of course 1985.
Mr. Perez: Second.
Mr. Carollo: There is a motion. There is a second. Would you
call the roll, Mr. Clerk.
The following motion was introduced by Commissioner Dawkins,'
who moved its adoption:
MOTION NO. 85-699
A MOTION OF THE CITY CORMISSION URGING THE CHAIR
PERSON OF THE ZONING BOARD TO CONSIDER THE
CALLING OF A SPECIAL MEETING NO LATER THAN THE
END OF JULY, 1985 FOR THE PURPOSE OF CONSIDERING
PENDING kpPLICATIONS CONCERNING OUTDOOR
ADVERTISING (BILLBOARDS).
Upon being seconded by Commissioner Perez, the motion was
passed and adopted by the following vote -
AYES: Commissioner Demetrio Perez, Jr.
Commissioner Miller J. Dawkins
Commissioner J. L. Plummer, Jr.
Vice -Mayor Joe Carollo
NOES: None.
ABSENT: Mayor Maurice A. Ferre
Mr. Knox: Thank you so much.
24 July 9, 1985
THEME BEING NO FURTHER BUSINESS TO COME BEFORE. THE CITY
COMMISSION, THE MEETING WAS ADJOURNED AT 3:49 P.M.
Maurice A. Ferre
M A Y O R
ATTEST
ITEM NOa DOCUMVIT
MEETING DATE
N X
DE
-- RETR I D/AL
CO�ISSION
IDENTIFICATION ACTION AND CODE NO.
CAIALING $'), 29-3 AUGRFGr1`I E 11PINC1-
PAI, AMOUNT 01" THE, PARKING FACILITIES R1;VI..NU1.
13UNDS (SERIES 1981, DATFID MARCH 1, 1982,
MATUPE ON 8/ 1/ 1994 THROUGH 8/ l/2005, 1NCL,U-
SIVv, AND 8/l/2008, INCLUSIVE, FOR RE-
pI�,MIITION ON 8/1/1992; ITC....
PROVIDE I.OR THE ISSUE OF AND FIX AND DETER-
PRINCIPALMIN1 T{{E DATE, AMOUNT, MATURITIES,
INTERESTRATES AND REDEMPTION PROVISIONS
OF' Sl)FCIAL OBLIGATION BONDS SERIES 1985
01. CITY OF MIAMI, FLORIDA? AUTHORIZE IN
THE AGGREGATE PRINCIPAL AMOUNT OF $13, 7.?CI,U( %
ETC........