The URL can be used to link to this page

Home My WebLink AboutR-84-0999WOW J-84-864 9/5/84 RESOLUTION NO. A RESOLUTION APPROVING FISCAL 1984-85 ADMINISTRATIVE BUDGET OF THE MIAMI SPORTS AND EXHIBITION AUTHORITY; AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT, SUBJECT TO THE CITY ATTORNEY'S APPROVAL AS TO FORM AND CORRECTNESS, INDEMNIFYING METROPOLITAN DADE COUNTY AGAINST ANY LIABILITY ASSOCIATED WITH THE EXPENDITURE OF CONVENTION DEVELOP- MENT TAX PROCEEDS DURING THE PENDENCY OF CURRENT LITIGATION, REQUIRING THE PROCEEDS TO BE PLACED IN A SEGREGATED ESCROW ACCOUNT BY THE MIAMI SPORTS AND EXHIBITION AUTHORITY AND NOT BE SPENT UNTIL THE PENDING LITIGATION HAS BEEN SUCCESSFULLY CONCLUDED OR UNTIL NO SIGNIFICANT RISK IS CREATED BY SAID EXPENDITURE; AND ALLOCATING AND DISBURSING AN AMOUNT FROM THE GENERAL FUND NOT TO EXCEED $362,181.82 TO COVER SAID FISCAL YEAR 1984-85 ADMINISTRATIVE BUDGET WITH ALL ADVANCED FUNDS TO BE IMMEDIATELY REFUNDED TO THE CITY FROM THE CONVENTION DEVELOPMENT TAX ESCROW ACCOUNT UPON THE SUCCESSFUL CONCLUSION OF THE PENDING LITIGATION. WHEREAS, pursuant to Resolution No. 83-1146, the City Manager disbursed $197,200.00 to the Miami Sports and Exhibition Authority to provide for the planning and implementation of the exhibition and sports facilities within the City during the 1983-84 fiscal year; and WHEREAS, the Miami Sports and Exhibition Authority received and expended said funds; and WHEREAS, Section 51.6-10 of the Ordinance creating the Miami Sports and Exhibition Authority requires that the Authority establish a fiscal year coinciding with that of the City, and also requires that the City Commission approve the fiscal budget to be submitted on City budget forms for appropriate consideration; and WHEREAS, the attached budget forms reflect the best avail- able information for the program to construct the convention/coli- sieum/exhibition center within the City, in addition to prorwting sports, entertainment, and convention events in the Cityl and WHEREAS, it is intended that the Miami Sports and Exhibition Authority fiscal 1984-85 administrative expenses be satisfied by proceeds from the Convention Development Tax Which is the subject of pending litigation before the Florida Supreme Court; and WHEREAS, the Miami Sports and Exhibition Authority is seeking immediate disbursement of Convention Development Tax proceeds from Metropolitan Dade County upon the condition that the Authority agrees to place said proceeds in a segregated escrow account and agrees not to spend any of said funds until the pending litigation has been successfully concluded or until no significant risk is created by said expenditure; and WHEREAS, representatives from Metropolitan Dade County have expressed an intention to disburse appropriate Convention Development Tax proceeds to the Authority upon assurances that the City agrees to indemnify Metropolitan Dade County against any liability associated with expenditure of Convention Development Tax proceeds during the pendency of said litigation; and WHEREAS, the Miami Sports and Exhibition Authority seeks an appropriate allocation and advance from the General Fund not to exceed $362,181.82 in order to continue the planning and developer selection process for the convention/coliseum/exhibi- tion center in fiscal year 1984-85; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The Commission approves the Miami Sports and Exhibition Authority fiscal year 1984-85 administrative budget. Section 2. The Commission hereby authorizes the City Manager to enter into a three party agreement, subject to the City Attorney's approval as to fora and correctness, with Metropolitan Dade County and the Miami Sports and Exhibition Authority, whereby the City and the Authority indemnify Metropolitan Dade County against any liability associated with expenditure of Convention Development Tax proceeds during the pendency of current 1 itigation# Metropolitan Dade County agrees to disburse appropriate Convention Development Tax Proceeds to the Miami Sports and Exhibition Authority, and the Authority �q r agrees to place said proceeds in a segregated account with the understanding that said funds are not to be spent until the pending litigation has been successfully concluded or until no significant risk is created by said expenditure and agrees to repay the City the total amount advanced to the Authority from the General Fund upon the successful conclusion of the pending litigation. Section 3. The City Commission allocates and authorizes the City Manager to disburse from the General Fund an amount not to exceed $362,181.82 to cover said fiscal year 1984-85 admini- strative budget with any advanced funds to be immediately refunded to the City from the Convention Development Tax escrow account upon the successful conclusion of the pending litigation. PASSED AND ADOPTED this 18th day of SQntember 1984. ATTEST: �_Qity Clerk PREPARED AND APPROVED BY: K006e� ;(. 04A0000 Assistant City Attorney APPROVED "%fV-44% A. "%fww City Attorney RNS/wpc/pb/156 D CORRECT _8Fgrre MAURICE A. F�ERRE;,layor 4*1 CITY OF MIAMI. FLORIDA AN INTER-OFFfCE MEMORANDUM TO Honorable Mayor and Members VA*F of the City Commission and City Manager F11JS 1E rr Larry Turner, Chairman ,� William Bayer, Co-Chairman'w'��W" FROM George F. Knox, Co -Chairman RENCES Rick Horrow, Executive Director�%R EFE Miami Sports and Exhibition Authorit ENC y OSURES September 13, 1984 Fiscal Year 1984-85 Administrative Budget and Disbursement of Funds It is recommended that the City Commission approve tSe `attacF�ed resolution approving the Miami Sports and Exhibition Authority fiscal year 1984-85 administrative budget; agreeing to indemnify Dade County against any liab t associated w t expenditure of o� nve`ntion Development Tax groceeds during the pen ency of current litigation, under- standing that the Miami Sports and Exhibition Authority, shall place said ��'r__o�cce__e__s n a se re ated escrow account, and shall not spend any of sai3 fugds until the pendTng I-Itigation is successfully concluded or until no significant risk s created by said expenditure; allocatin2 and authorizing the disbursement of funds from the General Fun not to exceed $362,181.82 to cover said fiscal year 1984-85 administrative budget with a_nX _advanced funds to be imme at- el-y refunded to t ie City rom the Convention Development Tax escrow account upon successful conclusion of the pending liti- gation. Section 51.6-10 of the City Ordinance creating the Miami Sports and Exhibition Authority requires that the Authority establish a fiscal year coinciding with that of the City of Miami, and further requires that the City Commission approve the fiscal budget to be submitted on City budget forms for appro- priate consideration. 4n August 29, 1984, the Authority approved its 1984-85 administrative budget. The explanatory memo and appropriate forms are attached to this memorandum. The attached forms reflect the ten (10) month 1983-84 administrative budget, that amount prorated over a ten (10) month period, and the 1984-85 twelve (12) month request. Honorable Mayor and Members September 13, 1984 of the City Commission and City Manager Page 2 The personnel requirements and fringe benefit form reflects an increase of one staff position to include a secretary/re- ceptionist. The salary increases parallel City administrative personnel increases, as well as an anticipated increase com- mencing October 1, 1984. The administrative/operations form reflects relatively constant levels of spending, adjusted for inflation as well as the additional staff position. Most expenditures for the 1983-84 fiscal year were within anticipated budget levels, except for higher than anticipated printing and distribution costs which have been taken into consideration for the fiscal year 1984-85 request. The professional and consultant services form is consistent with the philosophy that the Miami Sports and Exhibition Authority rely on expertise and staff support provided by City Law, Planning, Finance, and Economic Development Departments, minimizing external professional service requirements. Further, a supplemental program and construction budget for the con- vention/coliseum/exhibition center will be submitted at a later date. Compensation for consultants in this category (with the exception of a Financial Feasibility Consultant) are expected to be provided from proceeds from a bond sale or other appropriate debt instruments. While it is intended that Miami Sports and Exhibition Authority administrative expenses be allocated from proceeds of the Convention Development Tax, representatives from Dade County have expressed a concern that expenditure of any Convention Development Tax proceeds before the Florida Supreme Court rules on the pending lawsuit could expose the County to potential liability. Though the legal foundation of this position is unclear and discussions are ongoing, the County has indicated a willingness to disburse appropriate Convention Development Tax proceeds to the Miami Sports and Exhibition Authority as rapidly as possible upon the condition that the Miami Sports and Exhibition Authority would agree to place said proceeds in a segregated escrow account, and agree not to spend any of said funds until the pending lawsuit has been concluded, or until no significant risk is created by said expenditure, and that the City would agree to indemnify Dade County against any liability associated with expenditure of said Convention Development Tax proceeds during the pendency of said litigation. This position was outlined in a letter from Chairman Larry Turner, Executive Director Rick Horrow, and Assistant City Attorney Robert Sechen to City Manager Howard Gary on July 25, 1984. This corres- pondence is attached to this memorandum. 401�♦ AN Honorable Mayor and Members of the City Commission and City Manager September 13, 1984 Page 3 On August 29, 1984 the Miami Sports and Exhibition Authority approved a resolution agreeing to seek immediate disbursement of Convention Development Tax proceeds from Dade County, and further agreeing to place said proceeds in a segregated escrow account with funds not to be spent until the pending litigation has been successfully concluded or until no significant risk is created by said expenditure. In a companion resolution, the Authority requested that the City of Miami Commission allocate and approve a disbursement from the General Fund to cover said fiscal year 1984-85 administrative budget with any advanced funds to be immediately refunded to the City from the Convention Development Tax escrow account upon successful conclusion of the pending litigation. It is therefore recommended that the City Commission approve the attached resolution approving the Miami Sports and Exhibition Authority fiscal 1984-85 administrative budget; agreeing to jointly, with the Authority, indemnify Dade County against any liability associated with expenditure of Convention Development Tax proceeds during the pendency of current litigation, under- standing that the Miami Sports and Exhibition Authority shall place said proceeds in a segregated escrow account and shall not spend any of said funds until the pending litigation has been successfully concluded or until no significant risk is created by said expenditure; and allocating and authorizing the dis- bursement from the General Fund an amount not to exceed $362,181.82 to cover said fiscal year 1.984-85 administrative budget with any advanced funds to be immediately refunded to the City from the Convention Development Tax escrow account upon successful conclusion of the pending litigation. RNS/wpc/ab/158 M1Ftrrrhr t.rrq C'.n+rR. Rrwr t.«.w MM1tt MathrN U M�rNwa Ir�Mir R.Ap. ► S�Ip �I+a►d Marx Marwir r Irn., 1 ■ Ch►rcia r wr MawaR.r Npwartl V Cary. to oft in Rick ►twwm 1r"Woi" Dif" W, MEMORANDUM TO: Members of the Miami Sports and Exhibition Authority FROM: Rick Horrow, Executive Director DATE: August 29, 1984 RE: Proposed Fiscal 1984-85 Administrative Budget Section 51.6-10 of the Ordinance creating the Miami Sports and Exhibition Authority requires that the Authority establish a fiscal year coinciding with the City of Miami's. It also requires that the City Commission approve the fiscal budget to be submitted on City budget forms for appropriate consideration. The forms that follow reflect these requirements. On November 15, 1983 the Authority approved a ten month 1983-84 administra- tive budget covering December 1, 1983 through September 30, 1984. Each category on the forms reflects the ten month appropriation, that amount prorated over a twelve month period, and the 1984-85 twelve month re- quest. The amounts spent in 1983-84 on a monthly and year-to-date basis are included in the monthly Executive Director reports. The accounting firm of Coopers and Lybrand has been retained to provide a complete fiscal year 1983-84 audit pursuant to Section 52.6-11 of the Miami Sports and Exhibition Authority Ordinance. The personnel requirements and fringe benefits forms (pages 1 and 2) re- flect an increase of one staff position to include a secretary/receptionist. The salary increases parallel City administrative personnel increases,as well as an anticipated increase commencing October 1, 1984. The administrative/operations form (page 3) reflects relatively constant levels of spending, adjusted for inflation as well as the additional staff position. Most expenditures were within anticipated budget levels, except for higher than anticipated printing and distribution costs which have been taken into consideration for the fiscal 1984-85 request. The professional and consultant services form (page 4) is consistent with the philosophy that the Miami Sports and Exhibition Authority rely on ex- pertise and staff support provided by City Law, Planning, Finance, and Economic Development Departments, minimizing external professional service requirements. Further, a supplemental program and construction budget for the convention/coliseum/exhibition center will be submitted at a later itl 81strtyi>tcIhnll► >>,��ItiVri�, �t ii/ 1120, fvl►.ut►i, 11Oi0,l i i1 11 t il1'li i2t1-)1 111 A '�`e+� MEMORANDUM TO AUTHOPi"SY MEMBERS AUGUST 29, 1984 PAGE 2 iN date. Compensation for consultants in this category (with the exception of a Financial Feasibility Consultant) are expected to be provided from proceeds from a bond sale or other appropriate debt instruments. Though this budget reflects the best available information regarding program development, a supplemental budget would be submitted for Miami Sports and Exhibition Authority consideration if future needs require. It is therefore recommended that the Miami Sports and Exhibition Authority approve the attached budget as the fiscal 1984-85 administrative budget of the Miami Sports and Exhibition Authority, pursuant to Ordinance Section 51.6-10. It is also recommended that the Miami City Commission approve the following resolutions: (1) approval of the Miami Sports and Exhibition Authority fis- cal year 1984-85 administrative budget; (2) whereas the Miami Sports and Exhibition Authority is seeking itmnediate disbursement of Convention De- velopment Tax proceeds from Dade County upon the condition that the Author- ity agrees to place said proceeds in a segregated escrow account and agrees not to spend any cf said funds until the pending litigation has been favorably resolved or until no significant risk is created by said expenditure, the Authority and City agree to indemnify Dade County against any liability associated with expenditure of Convention Development Tax proceeds during the pendency of said litigation; and (3) approval of an allocation and disbursement from the general fund to cover said fiscal year 1984-85 ad- ministrative budget with any advanced funds to be immediately refunded to the City from the Convention Development Tax escrow account upon favorable resolution of the pending litigation. Job• Code osition Title OT Pos. ::,:V—eDirector 1- t to the Director 1 iniAtrative Assi stmt/ five NWHO ' 1 isecretary/— CITY OF MIAMI PERSONNEL REQUIREMENTS FISCAL YEAR 1984-85 iv Is10n i 1983-84 12 Month Proration 1984-85 Budget Aequest • Or 1 C Pos. Pos. $50,000 $60,000 $66,991.00 $22,000 $26,400 $29#476.06 $19,000 $22,800 $25,455.76 -0- -3- $14,000.00 $91,000.00 $109,200.00 $1350922.62 i i CITY OF 141P.Mt1 DUD"j JUSTiF1CA110t; FRINGE CENEF 175 FISCAL YEAR 1924" — _ ..... _ ...�......; *.i _ 10 Mmth Ninon T4,000 ett Code Description ItUu MM (grOW �1�ta1 death/life/ life/7,200 dental) Staff Parking pit Plan 12 Month 1983-84 proration $8,640 $2,700 $4,800 $16,140 1984-85 g l*pt pealu,"t $11,800 $ 3,600 $ 5,359 $20,759 CITY OF MIAMI BUDGET JUSTIFICATION OPERATING EXPENSES FISCAL YEAR 1984-85 Department ivision Miami 22REI§ and Exhibition Authori 10 Month 983-84 12 Month 1983-84 1984-85 Budget Request ; Minor Proration i ' 3b'ect Code Description i IMOPERATICNS ' +1Pant 1 S 14,050 $16,860 $ 16,100 (Furniture Rental 3,850 4,620 5,250 postap3,000 3,6a0 3,600 f 81000 9,600 9,600 fim Equipment Rental 4,000 4,800 5,000 Office Equipment Purchase 3,800 4,560 1,600 fine &&lies 3,000 3,600 5,000 j Omwi t Anawerinq Servioes 850 1,020 1,500 Busine$s Travel 10,000 12,000 15,000 Business Meeting D penes 2,500 3,000 4,000 Transportation 6 , ParkiM 3,500 4,200 4,200 intinq (business stationery, not ices, ad�senent, agendas , releases, requests for proposaLs, ' bulk copying & other public ' 3ntO�ttion) 10,000 12,000 15,000 ' !Subscriptions 1,000 1,200 11500 (general lirAbility, j 's cavensation, ) 3,600 4,320 4,600 i loyerIs Portion of FICA 5,100 6,120 9,550 i ' tt+ae Hg�enses 3,000 3,600 4,000 ' tiaigerrciesli�bving/Deposits tither costs 3,500 4,200 4,000 li,de show i brod=e prepara turn -0- -0- 3,000 r =0- - - - - - 0 - - - - - - - - - - 20,000 �$132,500 - _ - - - -' Sub -Totals 82,750 $99,300 CITY OF MIA14I BUDGET JUSTIFICATION OPERATING EXPENSES FISCAL YEAR 1984-85 vision " d- C,eneral I �M3mn Vos: is and Exhlhitim Authori I98" 12 Month 1983-84 1984-85 Budget Nquest Budget Proration i nor Descri lion bequest bject Code p�S.SICI�I. SERVICES Adit & Financial Mmu 9arentF5,0000 $ 6,000 $30,000 ility p�uq/Operations S 6,000Consultant $ 5,000 Services Cron- $32,000 o mational Cant -o- -0- _0_ _ $ 6,000 Attorney Stiipport Services Sue-ibtals 10,000 $12,000 - - - - -- $73,000 --------- - - ---; -------------- ---- * ------- Supplemental program and tsuction budget for the to be sutmitted TAtdr SE�� convent ion/ col iseunV exhibi center for pp ltatits i s ir�ancial Feasibility 'tract/Engineer at a later date. C��usa category (with the of Financial Fe�ility be frm prig , ' e pected ltant) arex provided iate debt instrumnt f sale of bonds or other iting Teats. nsel Counsel � ^"--"'-- f TOM 1983-84 TCJ►TAL 1983-84 12 MaM Pp(}gATI(�N ! 'emu 1984-85 $197,200 $236,640.00 $362,181.92 i 0 July 25, 1984 City Manager Howard V. Gary City of Miami 3500 Pan American Drive Mian. i, Florida 33133 Dear Howard: As the convention/coliseum/exhibition center process progresses into the developer selection and contract implementation phase, it is indeed unfortunate that the Sunny isles litigation challenging the Convention Development Tax hinders our efforts to receive and disburse the appro- priate funds. While we are clearly confident that we will ultimately prevail on this issue, we wanted to brief you on what we believe is the most appropriate procedure to provide for an orderly budgetary transi- tion into the 1984-1985 fiscal year until the Convention Development Tax litigation issue had been resolved. Representatives from Dade County have expressed a concern that expendi- ture of any of the Convention Development Tax proceeds before the Florida Supreme Court rules on the lawsuit could expose the County to potential liability. Thounh the legal foundation of this position is unclear and discussions are ongoing, we would like to reach an understanding between the Authority and Dade County covering the following issues: (1) that Dade County would disburse appropriate Convention Development Tax pro- ceeds to the Miami Sports and Exhibition Authority as rapidly as possible; and (2) the Miami Sports and Exhibition Authority would agree to place said proceeds in a segregated escrow account, and agree not to spend any of said funds until the pending lawsuit has been favorably resolved, or until no significant risk is created by said expenditure. At the earliest possible September date, the Authority would then seek favorable consideration of the following resolutions from the Miami City Cos+missioni (1) approval of the Miami Sports and Exhibition Authority fiscal year 1984-1985 administrative budget; (2) approval of an allocation and disbursement from the general fund to cover said fiscal year 1914-IM administrative budget with any advanced funds to be immediately refunded of vt ( I., . .. 1 , 1 . 1 % 1 , , 1. 4 1 ., . . . . r so to the City from tht Convention Development Tax escrow account upon favorable resolution of the pending lawsuit. We hope that this process meets with your approval, and we look for- ward to continuing to update you on the progress of creating our most needed convention/ coI iseum/exhibition center. Sincerely, Layry TgXner Chairman Rick Horrow Executive Director Robert Sechen Assistant City Attorney LT/RH/RS/lg