HomeMy WebLinkAboutM-82-0495r
TO: Howard V. Gary _ DATE: June 7, 1982
City Manager
City of Miami
SUBJECT: Financial Obligation of the
4
Gusman and Olympia Enterprise
i FROM: Roger M. Carlto Fund to the Department of Off-
DirectorStreet Parking
Department of f a-Aking
Pursuant to our recent conversation, this is to confirm that the Gusman and
Olympia Enterprise Fund (G & 0 Enterprise Fund) owes the Department of
Of -Street Parking $118,375, which has been carried as an accounts payable in
the G & 0 Enterprise Fund and an accounts receivable in the Department of
Off -Street Parking financial statement for approximately 18 months. We have
been apprised by our external auditing firm, Deloitte, Haskins & Sells, and
the trustees for our bonds, Southeast First National Bank and Florida
National Bank, that this obligation must be concluded. Therefore, it would
be.._appreciated if you could present this item for discussion by the City
Commission during their June 17, 1982 meeting.
By way of background, in 1975 the Department assumed responsibility for
management of Gusman Hall and the Olympia Building. Soon thereafter the City
located the City Attorney (October 1976) and the Office of Management and
Budget (March 1978) in the Olympia Building. The Department was requested to
renovate space in order to make it fit for use by these two Departments. At
that time, the construction estimate was $100,000. A verbal agreement was
reached in which the monthly rent for the 14,427 square feet utilized by the
City would be increased from $4.50 per square foot to $5.50 per square foot
in order to compensate the Department for the investment over a five year
period. The ultimate construction cost was $349,686. No arrangements were
made at that time to increase the $1.00 per month in order to work out the
obligation over the five years of the leases.
In order to finance the construction, the Department received a 4.5 percent
interest short term loan from City National Bank in the amount of $325,000.
During the five years of the lease period sufficient revenues were generated
in the operation of the Gusman and Olympia Enterprise Fund either through
operations or subsidy payments made by the City to reduce the construction
debt from $325,000 to $118,375. Therefore, it is now necessary to request
that the City refund this amount in order to satisfy the Trustees and the
Department's auditors.
82-49�
4
0
TO: Howard Gary DATE: June 7, 1982
3 City Manager
City of Miami
SUBJECT: Gusman Hall Emergency
Repairs
FROM: Roger M. Carlto
Director ,
Department of �ZL
During the recent rains it was discovered that two major leak problems have
developed in Gusman Hall. The first is in the North wall near the fire
escape. This leak has allowed water to damage the decorative plaster on the
North wall and to ruin the rugs in the seating area. It has been determined
that the problem could be repaired for approximately $3,000 by a company
specializing in caulking and sealing.
The second problem is that the roof over the auditorium, stage and lobby
areas has deteriorated to a paint where immediate major repairs or total
replacement of the existing roof, which is 25 years old, is necessary. A
major repair was accomplished five years ago for an approximate expense of
$5,000. This repair has deteriorated and we have not been able to find a
firm to accomplish the repair with any guarantee. Therefore, it is our
recommendation that the entire roof be replaced. The initial estimate for
replacement of the roof is between $60,000 and $70,000.
Plaster deterioration on the South side of the auditorium roof is occurring
at a rapid rate and we recommend that this be declared an emergency measure
and that formal bids be waived. It is our proposal that the City set aside
$75,000 for emergency repairs of the Gusman Hall roof and North wall leak and
authorize the Department to obtain a minimum of three quotations in order to
accomplish the work as soon as possible.
82-490-0