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HomeMy WebLinkAboutR-78-0644RFC /bbb 10/12/78 RESOLUTION NO. _ 78a• 644 A RESOLUTION APPROVING THE TERMS OF THE ATTACHED PROPOSAL SUBMITTED BY EVELIO LEY & ASSOCIATES, INC. ?OR THE PROMOTION AND OPERATION OF THE PROJECT KNOWN AS "TRADE FAIR OF THE AMERICAS - EXPORT '79" AND AUTHORIZING THE CITY MANAGER TO DEVELOP AND EXECUTE AN AGREEMENT IN SUBSTANTIAL COMPLIANCE WITH THE TERMS AND CONDITIONS OF SAID PROPOSAL, USING FUNDS FOR SAID PROJECT IN ACCORDANCE WITH SAID AGREEMENT ALLOCATED FROM THE CONTINGENCY FUND, NOT TO EXCEED $200,000, AND AUTHORIZING THE TRANSFER OF $350,000 FROM THE CONVENTION FUND TO THE TRADE FAIR FUND ON A LOAN BASIS. "SUPPORTIVE DOCUMENTS FOLLOW" WHEREAS, in March, 1978, the City of Miami successful1,y concluded the first half of the economic project known as TRADE FAIR CYCLE -IMPORT; and WHEREAS, the City desires to complete the export phase o that CYCLE; and WHEREAS, the City recognizes the herein Trade Fair Export '79 as its official project; and WHEREAS, the City calls upon other governmental agencies and entities to participate in helping this area to continue in its development as the center of international finance and commerce. NOW, THEREFORE, BE IT RESOLVED BY COMMISSION OF "DOCU�NENT THE INDEX CITY OF MIAMI, FLORIDA: ' Pt ITEM NO. Section 1. The terms of the attached proposal submitted by Evelio Ley & Associates, Inc. for the promotion and operation �f the project known as "Trade Fair of the Americas - Export '79", is hereby approved. Section 2. The City Manager is hereby authorized to develop and execute an agreement in substantial compliance with the terms and conditions of said proposal, using funds for said project in accordance with said agreement allocated from the Contingency tund,not to exceed $200,000. 11111111.1 ■ii1111111111111111vv11■11111111III III I Illlli IIIi11llrn■■ui111■ - gbdtioh 3. The transfer of $350,000 from the Convention hd to the Trade Fair Fund on a loan basis is hereby authorized. PASSED AND ADOPTED THIS 12 day of OCTOBER , 1978. MAURICE A. FERRE MAURICE A. FERRE MAYOR ATTEST A5:1 cff/ (942.. RALP4H G. NGIE, CITY CLERK PREP 2ED AND APPROVED BY: kr./ -tiCe/C4. ROBERT F. CLA RK ASSISTANT CITY ATTORNEY APP•'t D AS TO FORM AND CORRECTNESS: GEORGE . KNOX, JR. CITY ORNEY "SUPPORTIVE DOCUMENTS FOLLOW" 70: MM MM Ma MME MEM MEM i ct,-Y .ter "t FLC rur)A Joseph A, Grassie City Manager ss I i; Charles L. Crumpton Assistant City Manager October 6, 1918 thmcs. Trade Fait Of the Atheridas Export '79 Attached is the proposal for accomplishing the second half of the trade fair cycle - Trade Fair of the Americas - Export '79, which is to be held at the Coconut Grove Exhibition Center in July of 1979, again in concert with the Organization of American States (OAS). Preliminary work has been ongoing since the close of the Trade Fair of the Americas - Import '78 with representatives of the U. S. Departments of Commerce and State. The Commerce Department personnel have reviewed the approach, content and proposed participants. It will assist us in as many ways possible to make the Fair a success. The State Department has been working with us in the preparation of the Inter American Symposium on Financing and Credit in Foreign Trade which will take place in December of this year as a prelude to the '79 Trade Fair. The Trade Fair of the Americas - Export '79, is the export half of the import-export cycle of the City's Trade Fair economic activities. The products are of U. S. manufacture which will be of interest to consumer production industries of the Latin American and Caribbean countries. As such, the usual large government purchased type of capital equipment is not intended to be a part of this Fair. Requests for financial support for the '79 Fair have been again solicited from Dade County ($150,000) and the State of Florida $150,000). An application for $200,000 from the U. S. Economic Development Administration is in process. The City of Miami would participate via $200,000 as well as provide the reimbursable front end money, as was done for last year's Fair, of $350,000. The estimated cost of the '79 Fair is $1,325,000 of which the City would have $200,000 committed as part of the $700,000 coming from the various governmental agencies. The balance of $625,000 will be generated by the various proceeds from the Fair activities; i.e., rental of floor space to the exhibitors. The successful '78 Fair has provided an experience upon which to draw in the preparation of the budget, for this Fair, thus no anticipated differential between expenses and revenues "SUPPORTIVE DOCUMENTS FOLLOW" 78-644 MERE momw SEM MINN MEE mmw MEM mmw MEM MEM ••••• •10=0 I I I I lir EVELIO LEY & ASSOCIATES, INC h_111111in 100 N BISCAYNE BLVD 7th FLOOR, MIAMI, FLA 33132 - PHONE I30111 373-1976 IOW THE CITY or MIANi riloM: EVELIO LEY & ASSOCIATES, INC IRE: THE TRADE FAIR OF THE AMERICAS 79 Xtold PROPOSAL AND REQUEST FOR SPONSORSHIP SUPPORTIVE COORDINATORS OF THE TRADE FAIR OF THE AMERICAS PUBLIC RELATIONS • PLANNING. COORDINATING & MANAGEMENT OF INTERNATIONAL EVENTS • o: FROM: MEM MEM MEM Joseph R. Grassie City Mahaget eV Charles L. Crompton Assistant City Manages` October 60 1918 CITY ^F 1?•.1{, FI_Ct?IC).A ',1*-7.tiQRAt +atr:. • $tibJr:ct EREJ,+aiS trade Fain of the Americas F sport ' 19 Attached is the proposal for accomplishing the second half of the trade fair cycle - Trade Fair of the Americas - Export '79, which is to be held at the Coconut Grove Exhibition Center in July of 1979, again in concert with the Organization of American States (OAS). Preliminary work has been ongoing since the close of the Trade Fair of the Americas - Import '78 with representatives of the U. S. Departments of Commerce and State. The Commerce Department personnel have reviewed the approach, content and proposed participants. It will assist us in as many ways possible to make the Fair a success. The State Department has been working with us in the preparation of the Inter American Symposium on Financing and Credit in Foreign Trade which will take place in December of this year as a prelude to the '79 Trade Fair. The Trade Fair of the Americas - Export '79, is the export half of the import-export cycle of the City's Trade Fair economic activities. The products are of U. S. manufacture which will be of interest to consumer production industries of the Latin American and Caribbean countries. As such, the usual large government purchased type of capital equipment is not intended to be a part of this Fair. Requests for financial support for the '79 Fair have been again solicited from Dade County ($150,000) and the State of Florida $150,000). An application for $200,000 from the U. S. Economic Development Administration is in process. The City of Miami would participate via $200,000 as well as provide the reimbursable front end money, as was done for last year's Fair, of $350,000. The estimated cost of the '79 Fair is $1,325,000 of which the City would have $200,000 committed as part of the $700,000 coming from the various governmental agencies. The balance of $625,000 will be generated by the various proceeds from the Fair activities; i.e., rental of floor space to the exhibitors. The successful '78 Fair has provided an experience upon which to draw in the preparation of the budget, for this Fair, thus no anticipated differential between expenses and revenues. "SUPPORTIVE DOCUMENTS FOLLOW" 78-644 i ME • • ME MM MM Ma MM MM T% Joseph ft, Grassie City Manager The proposal submitted by the coordinatotb as before, requires that certain actions be taken by the City to continue the progress of this iMportant economic activity. I therefore recommend the following: 1) That the City reaffirm its leadership as the major sponsor; 2) That the Coordinator's proposal be accepted and the Manager be authorized to execute an agreement based upon the proposal; 3) That the City, as the major sponsor, contribute $200,000 to its success; 4) That a reimbursable fund of $350,000 be established for front - ending the Fair; 5) That a Trade Fair of the Americas - Export '79 Trust and Agency Fund be established as the repository of revenues and from which disbursements will be made. The Trade Fair of the Americas - Export '79, the other half of the import-export trade cycle, is now in gear and needs these actions by the City Commission so that it can accelerate to success. 4 i i i ii i i mii ni■Iiiiiii IIIIIIIII■■■I OIMINIMM EVELIO LEY & ASSOCIATES, INC, 100 N BISCAYNE BLVD , 7th FLOOR, MIAMI FLA 3313? - PHONE [3051 373-1976 THE CITY OF MIAMt FROM: EVELIO LEY & ASSOCIATES, INC. RE: THE TRADE FAIR OF THE AMERICAS '79 EXPORT `SUPPORTIVE COORDINATORS OF THE TRADE FAIR OF THE AMERICAS PUBLIC RELATIONS - PLANNING, COORDINATING & MANAGEMENT OF INTERNATIONAL EVENTS mw MEW MEW imm earl rim n ■■■I I■IIIIIII■III IIIIIIII ■���� �� ■��� ���■�■iiii■ ■ ,DE_ FAt1t OF THE AMERtICAS '9 EXPO1 tT The Trade Fair of the Americas '79 Export is a continuation of the Miami Trade Fair Cycle initiated by the Trade Fair of the Americas in March 1978. This first event not only produced $57 million in transactions but, even more importantly, increased the hemispheric awareness of Miami as the center of Inter - American Trade and a convenient and highly effective base of expansion of Latin American Trade into the U.S. market. Miami has thus convinced Latin Americans that they can success- fully sell their manufactured goods in the U.S. markets using this city as the base of operations. The Trade Fair of the Americas '79 Export, Miami's first National Export Fair, will prove to the U.S. industries that the most effective way to sell in Latin America is also through Miami. Miami has demonstrated its enormous potential as the center of Latin American exports into the United States. Let us now move toward establishing Miami as the center of U.S. and overseas exports to Latin America and the Caribbean. The concept of Miami as the Commercial Bridge between the Americas will then become a reality. THE EXHIBITORS Only U.S. manufacturers of machinery and equipment are eligible to participate as Exhibitors at the T.F.A. '79 Export. The following categories will be represented: A. Textile Industry B. Furniture and Wood Processing C. Food Processing1Packaging and Agro-Industrial Machinery D. Leather Processing and Finishing E. Jewelry Manufacturing Equipment EVELIO LEY & ASSOCIATES, INC. "SUPPORTIVE DOCUMENTS FOLLOW" 4 F. Industrial Communications, Office and Data Systems The Trade Fair will provide complete banking, freight-forwatding, etStams and marketing assistance ILo the participants. 1 MMM EVELIO LEY & ASSOCIATES, INC. ■ "SUPPORTIVE DOCUMENTS FOLLOW" 111IIIIuIIIIIIIIIIIIIIIIIIIII IIIIIIIIIII IIIIImII o iiiiminii THE BUYERS th order to positively identify effective Latin American buyers and assure their participation in the Trade Fair, a system of National Commercial Missions has been developed and will be carried out in collaboration with the governments and industrial organizations of Latin American and Caribbean countries. The National Commercial Missions to the T.F.A. '79 Export will be sponsored by appropriate government agencies, industrial asso- ciations and Chambers of Commerce of every participating country. Special flights and hotel packages will be offered to buyers significantly reducing the cost of travel and accomodations in Miami. The U.S. diplomatic and commercial posts will collaborate in the organization of the Missions. Initial promotion will reach the O.A.S. member countries and the selected countries of Europe and Asia. Membership in National Commercial Missions is not a pre -requisite of buyers' participation in the Fair. Every foreign buyer will be admitted to the Fair following proper registration. EVELIO LEY & ASSOCIATES, INC. I i gyp, DocUMEN FOLLOW„ tve11t bey & Associates, lhd. Will deliver the project as outlined _ below. The project of the Trade Fair of the Americas Export '79 three basic, partly overlapping phases: 1. Development 2. Execution • 3. Dismantling & post -Pair i. Development ma Includes the following task/cost areas: mm (A) Promotion & advertising. O • EVELIO LEY & ASSOCIATES, INC. ME - Direct mailings (U.S. and overseas, est. 250,000 pieces of mail) ; - Printing (5 brochures, Exhibitor's/Buyer's Information Kit, Newsletter - 12 issues, Exhibitor's Manual, T.F.A. Journal- 7 editions, press releases, promotional letters, certificates and plaques, Catalogue, tickets, other); - Media advertising (U.S. and overseas, est. circulation 5 million); - Press relations (U.S. and overseas - press conferences, editorial materials, press releases, direct contacts); - Government and industry relations (U.S. and overseas - fund raising, organization & promotion of Buyer Missions in foreign countries in collaboration with the governments and industry associations etc.); - Community relations (Miami area - public presentations and lectures, involvement of community organizations and coordina- tion of their activities within the project); - Promotional travel (U.S. and overseas). (B) Planning and organization of the Exhibit Floor Plan, including preparation of Construction & Design Rules, and all the other facilities and services of the Trade Fair, such as decoration of common areas, computerized Exhibitor/Buyer Registration system, computerized statistical service, transportation services, host/interpreter services, communications/information center, security, maintenance/technical services, marketing assistance and on -site auxiliary services. (C) Sale of Exhibition Space 2. Execution "SUPPORTIVE Includes the following task/cost areas: DOCUMENTS FOLLOW„ A 4 (A) Complete management of the Trade Fair in all its operating phases and programmed events. = Supervision of construction & design = Management of all integrated and auxiliary services & systems (please see 1-(B)) Management of the press and public information services (includes publication of the Trade Fair Journal Export '79 in three languages) press room etc. - Management of Exhibitor/Buyer relations and special events (inauguration, Executive Suite Program, marketing assistance & referral service) Dismantling & Post -Fair mm analysis of commercial results and C.P.A. audit (A) Supervision of dismantling and related actiVitiet (B) Post -Fair assistance to Exhibitors (C) Preparation of the Report on the Trade Fair including (b) Post -Fair mailings to Exhibitors & Buyers EVELIO LEY & ASSOCIATES, INC • "SUPPORTIVE DOCUMENTS FOLLOW" 411111•111111•111111111111111 MEMO $ stlit' THE EXPORT TRADE FAIR TO THE CITY AND THE GREATER MIAMI AREA • • mediate ■ � -According to ultra -conservative projections the Fair will generate about $15,000,000 in sales served by local banks, freight -forwarders, maritime and air carriers and other services, amounting to at least 10% of the total volume, or $1.5 million remaining in this community. -U.S. Department of Commerce estimates that an average 5-day foreign visitor spends an average of $1,000 in the U.S. for shopping and entertainment only. Basing on a conservative estimate that only 50% or 2,000 of the Fair's foreign visitors will spend that much during their 10 day sojourn, Miami area shops and restaurants will do an additional $2 million business as a direct result of the Fair. -56,000 man-hours of local employment on the project; -Estimated minimum of 600 domestic and 4,000 foreign visitors into the area, spending an average of $75 daily during 10 days, for the total of $3,450,000 injected into local economy in di- rect aftermath of the Fair. i ■ i Long-term: -Increased international exposure of the Miami area as the commercial center of the hemisphere; -National exposure of Miami as a major center of industrial exports to Latin America from the U.S. and other parts of the world; - As a result of the above, an additional incentive for U.S. manufacturers to invest in this area by opening branches, export offices and distribution facilities which will create new jobs in the community; - An economic and psychological boost to local businesses; an encouragement to expand by exploring new opportunities created by the enhanced international and national commercial ties and status of the community; -Trade Fair of the Americas '79 Export is Miami's major contribu- tion to the national efforts aimed at the development of new foreign markets for U.S. products. This contribution comes at a time of intensified struggle to defend the dollar in world money markets and an urgent need to expand U.S. exports. "SUPPORTIVE DOCUMENTS FOLLOW" EVELIO LEY & ASSOCIATES, INC. T ".th addition, the Trade Fair will bring about an increased cultural and human inter -action of our community With Latin Aterica, Europe and Asia. EVELIO LEY & ASSOCIATES, INC • "SUPPORTIVE DOCUMENTS FOLLOW" PtopOSed Basis for Agreement A. Responsibilities of the City of Miami 1) The City of Miami, further referred to as "the City"j will adopt the project of the Trade Fair of the Americas = Bxport '79 as its official project. The City will thereby assume the leader- ship over the Trade Fair and be its major sponsor and host. 2) The City will contribute $200,000 to the project. 3) The City will undertake every reasonable effort to obtain other public grants for the project, namely: $150,000 from Metropolitan Dade County $150,000 from the State of Florida $200,000 from the Economic Development Administration of the U. S. Department of Commerce These entities will thus become co-sponsors of the Trade Fair with the City of Miami. 4) The City will provide operational front money in the amount of $350,000 to assure the necessary cash flow, as specified in the enclosed schedule. This money will be reimbursed to the City by the end of this fiscal year. 5) The City will oversee the entire project in all its phases: financial, development, promotion, execution and post -fair period. B. Responsibilities of Evelio Ley & Associates, Inc. 1) Evelio Ley & Associates, Inc., further referred to as "E.L.A.", will develop, promote, execute and manage the entire project, in all its phases, as specified in the Proposal. 2) E.L.A. will fully cooperate with the City Government in the exercise of the City's supervisory functions. E.L.A. will also assure that the City's and the co-sponsors' interests and prestige are duly protected and promoted in all the activities pertaining to the project. 3) E.L.A. will undertake every reasonable effort to achieve maxi- mum success of the project. 4) E.L.A. will accept a reasonable business risk, as outlined in Chapter "C" ("Business Terms"). This risk will expose E.L.A. to financial losses, as projected in the enclosed Schedule (please see March column) if the City decides that the project should be discontinued because of unavailability of the public funds listed in Chapter "A", Item (3), or because of inadequate progress in the sale of the exhibition space and other Trade Fair services (please see Schedule, March column). EVELIO LEY & ASSOCIATES, INC. "SUPPORTIVE DOCUMENTS FOLLOW" a MEEEE uiuo■iiiiiuiiiiii111iu 11111 IIIIiIIuimII■III•I1 C, business Terms as per Schedule -Please Note: The project contains two potential cutoff points& The first one is in January, 1979, when the City will re -appraise, and may discontinue the project, because of unavailability of other public funds. The second one is in March, 1979, when similar manage- ment decision on the part of the City may have to be made because of inadequate progress in the sale of exhibition space and other Trade Fair services. October - December 31, 1978 1) The City will pay for the following develOpteht and promotional expenses: Advertisements Printing Direct Mail 2) L6L.A. will bear its entire operating cost applied to the project and will not be paid any professional fees in this period. 3) If the City chooses to discontinue the project because of unavail- ability of other public funds, E.L.A. will be paid $37,500 as a partial reimbursement of its operating costs and without further obligation on the part of the City. E.L.A.'s total operating cost applied to the project will at this point amount to approximately $73,300 leaving E.L.A. exposed to an estimated loss of $35,800, and the loss of a professional fee for the work accomplished up to this point. E.L.A. thus agrees to share, with the City, to this extent, the risks resulting from unavailability of other public funds for the project. January 1 - March 31, 1979 1) If other public grants are reasonably committed on, or about, December 31, 1978, the payments will continue as per Schedule. 2) If less than 50% of exhibition space has been sold the City may decide to discontinue the project. Should this occur, E.L.A. will be paid $75,000 as a partial reimbursement of its operating costs applied to the project and without further obligation on the part of the City. At this point E.L.A.'s operating cost will amount to approximately $209,000 exposing it to an estimated loss of $59,000 (please see Schedule, "Contingent Operating Costs") and the loss of a professional fee for the work accomplished. E.L.A. accepts this as a reasonable business risk. April 1 - August 31, 1979 1) If at least 50% of the Trade Fair exhibition space has been sold by March 31, the project will continue as per Schedule. EVELIO LEY & ASSOCIATES, INC. DOCUMENTS FOLLOW" Do itiommw Wm—w- E==: r—` lit- .1. • 2) tf the 1ettel of success of the project teaches 50% of more in terms of exhibit space sold, or if the City decide to continue the project with a lower level of success, E.L.A.`s professional fee will be 15% of the total of all proceeds from the sale of exhibition space, advertising space in the Trade Fair Catalog, public admission tickets and other services. 1) If the Trade Fair of the Americas -Export '79 is concluded suc- cessfully, the City will grant E.L.A. the right to coordinate the subsequent two Trade Fair cycles, should the City decide to continue this project. The conditions of the contract in each case will be negotiated at the appropriate time. EVELIO LEY & ASSOCIATES, INC. "SUPPORTIVE DOCUMENTS FOLLOW" 2) tt the level of success of the project reaches 50% or more ih terms of exhibit space sold, or if the City decides to dohtinue the project with a lower level of success, E.L.A.'s professional fee will be 15% of the total of all proceeds from the sale of exhibition space, advertising space in the Trade Fair Catalog, public admission tickets and other services; provided the maximum amount of all proceeds to which E.L.A.'s professional fee of 15% may be applied will be $625,000. Total proceeds in excess of $625,000 from the sale of exhibition space, advertising space in the Trade Fair Catalong, public admission tickets and other services will be used to reduce the City's obligation as it relates to the sum of $200,000 set forth in Paragraph A2 on Page 9 of this herein proposal. 3) If the City Commission in its sole discretion shall determine that each annual phase of the project for 1979, 1980, 1981, and 1982 has been reasonably successful, then E.L.A. shall have the right to coordinate the annual phases of the Trade Fair project cycle phase for each of the succeeding years: namely 1980, 1981, 1982, and 1983 respectively. 4) The proposed current agreement and all future similar agreements with the City to be performed by E.L.A. in the coordination of the Trade Fair project are considered to be of such nature that said agreements are non -assignable by E.L.A. "SUPPORTIVE DOCUMENTS FOLLOW" Page 11 /) 1i the level of success of the project reaches 50% or more in terfns of exhibit space sold, or if the City decides to continue the project with a lower level of success, E.L.A.'s professional fee will be 15% of the total of all proceeds from the sale of exhibition space, advertising space in the Trade Fair Catalog, public admission tickets and other services. If the Trade Fair of the Americas -Export '79 is concluded suc- cessfully, the City will grant E.L.A. the right to coordinate the subsequent two Trade Fair cycles, should the City decide to continue this project. The conditions of the contract in each case will be negotiated at the appropriate time. VELIO LEY & ASSOCIATES, INC. "SUPPORTIVE DOCUMENTS FOLLOW" ■ i i i i ■ ■ ulul i ■ IEEE SCHEDULE Cash Flow for The Trade Fair Of The Americas -Export '79 October 1, 1978 to August 31, 1979 (in thousands of dollars) 111111111111 111■ Oct Nov Dec Jan Feb Mar Apr May Jun Jul A Tote Expenditures (Cash out -lay) Advertising costs -0- 20.0 10.0 40.0 45.0 65.0 35.0 25.0 25.0 10.0 -0- 275..M Printing costs 16.0 4.0 7.0 6.0 6.0 7.0 2.0 2.0 30.0 -0- -0- 80.0 Direct mail costs 5.0 6.0 4.0 10.0 10.0 10.0 5.0 5.0 5.0 -0- -0- 60.0 Exhibit costs -0- -0- -0- -0- -0- -0- -0- -0- 25.0 75.0 -0- 100.0 Hosting costs -0- -0- -0- -0- -0- -0- -0- -0- -0- 60.0 -0- 60.0 Miscellaneous costs -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- 115.8 115.8 (A) Operating costs -0- -0- 37.5 37.5 -0- 75.0 50.7 59.2 51.1 97.4 73.1 481.5 Contingent operating costs -0- -0- -0- -0- -0- -0- 59.0 -0- -0- -0- -0- 59.0 Professional fees -0- -0- -0- -0- -0- -0- 30.0 9.0 7.9 23.4 23.4 93.7 Monthly Totals 21.0 30.0 Cumulative Totals 21.0 Revenues (In-Comin Cash) (B) Grants - City of Miami - County of Dade - State of Florida - U.S. Government Sale of space Monthly Totals 200.0 200.0 Cumulative Totals 200.0 58.5 93.5 61.0 157.0 181.7 100.2 144.0 265.8 212.3 1325..0 51.0 109.5 203.0 264.0 421.0 602.7 702.9 846.9 150.0 180.0 1112.7 150.0 1325.0 20.0..0 150.0: 150.0 20.0 200.0 200.0 60.0 53.0 156.0 156.0 625.0 - - 150.0 - 380.0 60.0 53.0 156.0 306.0 20.0 132.5.0 200.0 200.0 350.0 350.0 730.0 790.0 843.0 999.0 1305.0 1325.0 Balance of Cash Available at the end of each month 179.0 149.0 90.5 147.0 86.0 309.0 187.3 140.1 152.1 192.3� Notes: (A) Evelio Ley & Associates, Inc. will bear the operating costs for the months of October, November and December, 1978 totalling)' $73,300 against a partial reimbursement of $37,500. Should the project be discontinued on December 31, 1978 E.L.A. losses are estimated at $35,800. Evelio Ley & Associates, Inc. will further bear the operating costs for the months of January, February and March totalling $135,700 against a partial reimbursement of $75,000. Should the project be discontinued on March 31, 1979 the aggregate loss to E.L.A. is estimated to be $59,000. Monies from the Dade County and the U.S. Government may not arrive in January and March, respectively. Should this occur a cash shortage situation may arise necessitating a draw from the roirrhnr'. i► h ft+nil of c1sn nnn (8) i