HomeMy WebLinkAboutCC 1977-09-23 MinutesCITY OF
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PREPARED BY THE OFFICE OF THE CITY CLERK
CITY HALL
RALPH G. ONGIE
CITY CLERK
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ITEM NO.
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PRESENTATION OF
PROPOSAL.
PRESENTATION OF
PROPOSAL
PRESENTATION OF
BUDGET PROPOSAL
PRESENTATION OF
BUDGET PROPOSAL
PRESENTATION OF
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SUBJECT
PLANNING & ZONING BOARDS BUDGE'
STADIUMS AND MARINAS BUDGET
BUILDING & VEHICLE MAINTENANCE
COMPUTERS AND COMMUNICATIONS
HUMAN RESOURCES BUDGET PROPOSA
PRESENTATION OF CIVIL SERVICE BUDGET PROPOSAL.
PRESENTATION OF FINANCE & PENSION BUDGET
PROPOSAL.
PRESENTATION OF TRADE AND COMMERCE PROMOTION
BUDGET PROPOSAL.
PRESENTATION OF CITY CLERK BUDGET PROPOSAL -
SALARY ADJUSTMENT FOR ASSISTANT CITY CLERK.
PRESENTATION OF LAW DEPARTMENT BUDGET PROPOSAL.
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17-19
20-21
21-22
MINUTES OF SPECIAL MEETING
CITY COMMISSION OF MIAMI, FLORIDA
* * * * *
Oh the 23 day of September, 1977, 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.
The meeting was called to order at 3:31 O'Clock P.M. by Mayor
Maurice A. Ferre with the following members of the Commission present:
Commissioner Rose Gordon
Commissioner Manolo Reboso
Commissioner J. L. Plummer, Jr.
Vice Mayor (Rev.) Theodore R. Gibson
Mayor Maurice A. Ferre
ALSO PRESENT:
Joseph R. Grassie, City Manager
George F. Knox, City Attorney
Ralph G. Ongie, City Clerk
Matty Hirai, Assistant City Clerk
PRESB' TATI C'1 OF RAINING NING a ZO 'dI►VG BOARDS BUDGET PROPOSAL
Mr. Bob Davis: As you know, the operation of my department is closely prescribed
by existing laws and by the Code. There are very few things I can do to change
my budget. What we have done this year, in view of requests from the Manager to
reduce our budget in every way possible, we decided we could remove one of our
staff, which will have the effect of not transcribing part of the Planning Advisory
Board minutes, that portion which is only in public meeting.
We are, by law, required to record and transcribe the Planning Advisory Board
Public Hearing which is just a small portion of their meeting since most of it is
done in workshop fashion.
We do, and will plan on, transcribing verbatim, all of the Zoning Board minutes
as we have. This will be the only effective change in our operation for this
coming year and yet we were able to reduce the staff by one.
Mr. Plummer: Do you have anything that you requested that you didn't get?
That affect the operation of your department?
Mr. Davis: This is what I am stating. Everything that is essential according to
law has been left in.
MEDIATION OF STADIUMS AND !%11\RMAS BUDGET PROPOSAL
Mx, Bob Jennings: I am the Director of the Department of Public Facilities.
A couple of items I might mention with regard to my departments budget. There
are perhaps 2 significant changes in this years budget as opposed to former
budgets. #1 - The name of the department is to be changed to the Department
of Stadiums and Marinas. #2 - the operational control of Bayfront Auditorium
and Dinner Key Auditorium, will now be placed under this department and this
represents an addition of 5 people to the department as well as the operational
budgets of those 2 facilities.
Mr. Plummer: Did you ask for anything in your budget that you considered was
essential that you didn't get?
Mr. Jennings: No Sir, not really.
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Mrs Gordon: Hob, is there any way that you know that we could increase revenues
and come out of the red in some of those operations.
Mr. Jennings: Commissioner Gordon, perhaps you will remember: We recently
employed under contract, a firm called Star Entertainment and they are under a
1-year contract at the moment and their function will be to do just that, to try
to increase the activity at the 5 city facilities that are under my contr
hopeful.
They have just gone to work within the last month or so and I am quite
that with their assistance, we can increase the revenues at those facilities.
Mr. Plummer: Has any consideration been given to having other than, lets say,
well Star in my estimation is going to be the kind of generation of revenue from
singers and groups, rock groups and bands - top notch entertainment.
Has any consideration been given to the possibility of other than sports and that.
In other words, have we given any thought to a circus in the Orange Bowl?
Have we given any thought to any other kind of activity that would generate revenue?
Mayor Ferre: Polo games, revivals etc.
Mr. Jennings: The terms of their agreement do not limit them to musicals. It just
does include such things as revivals, circuses.
Mr. Plummer: Yes, but they are not going to be working in that area. They are going
to be working in the area of Bands and big name entertainers.
I am talking about other kinds of activities. I go back to the old thing of the
Astrodome.
The Astrodome has 300 days of activity. The Orange Bowl has 35.
I have said before and will say again, the key to the success of the Orange Bowl
is not in sports. The key to the Orange Bowl is definitely other activities where
you use and utilize huge seating capacity.
Mayor Ferre: Yes but J.L., the Astrodome has baseball and right there you have
120 games.
Mr. Plummer: Half of the games, they play away. Maurice, they have many double
date games in there. All I am saying is that the potential.
In the baseball stadium, you get much more use of.
Mayor Ferre: They have Rodeos, Horse Shows, Revivals.
Mr. Plummer: I am just saying, we have the facility there. Sure you might have
to spend some money to put a tarpaulian over a boxing ring or something like tthat.
It takes money to make money. I say to you that 330 days out of the year,
tht
is not a money producer and it should be. I hope that the administration will take
into consideration. I see nothing wrong at the Marine Stadium having outdoor
movies, if you want to use it for boat and outdoor kindof movies, what is wrong
with it? If nobody starts moving in the damm thing, nothing is ever going to
get done. I for one, would like to see what I think is a potential gold mine
for the City, to be for some real interest drawn. As much confidence as I have
in Star Entertainers, and I moved the motion and I brought them to the City, I
don't think they are going to be moving in all of the areas and I am hoping that
the administration will either develop it among themselves or get another outside
person and try to fill those stadiums on more days of use.
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ange
Mayor Ferre:
we haveoal$75,000tdebt. last yIathought r out ethat twehhad rpaid all the s theindebtedness
This yeaea
at the Orange Bowl.
Mr. Jennings: No Sir, we have not. That $75,000 is a contribution to the debt.
It is not the entire years payment on the debt service. I believe the payment
this year was $171,000 which is elsewhere in the book here.
Mayor Ferre: Well I don't understand that kind of an answer. You mean to tell
me that the $75,000 is not that but it is going to be more?
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Mr, dehhiiigs: That is the fi ure that is required by the bonding ordinance
I believe.
Mayor Ferre: Gene Naples, didn't you tell me that all the money in the eraage
Bowl that all the debt had been paid?
Mt. Plummer: No Maurice, one reason you can't do that is because of the Marine
Stadium Bonded indebtedness tied into the Orange Bowl.
Mr. Jennings: There is approximately 2 million dollars left.
Mrs. Gordon: How much of it, is what he is saying?
Mr. Plummer: Its a mixture.
Mayor Ferre: In other words, we still have a remaining debt at the Orange Bowl,
is that what you are telling me? How much money to we owe at the Orange Bowli
do you have any idea?
Mr. Jennings: Something less than 1 million dollars.
Mr. Plummer: You got to break that down because it shows a larger figure at
the Orange Bowl when in fact, part of the Marine Stadium indebtedness is included
in that.
Mr. Jennings: My impression was that it was purely Orange Bowl.
Mrs. Gordon: When we paid back that 3 million 2 something or other from the
capital improvement fund to the reserve account, didn't we pay off the balance
of the indebtedness?
Mayor Ferre: And if we didn't, how much do we have to go?
Mrs. Gordon: Is Mr. Gunderson here? We are getting into his area of concern.
Mr. Plummer: WHat she is talking about is Resolution 77-72 which we passed the
amount authorizing transfer of $3,257,316.00 from the capital improvement fund
to unallocated reserve account and debt service in order to provide additional
funds to pay the outstanding principle --
Mayor Ferre: Mr. Gunderson, are you listening to this question?
Mr. Plummer: On the special obligation -capital improvement bond series A to E
on the Orange Bowl Special Obligations of the City..
When we did that, what he is asking is, did that wipe the slate free and clear?
Mr. Gunderson: That wipes it clean, the only thing left is the Orange Bowl bonds.
Mayor Ferre: Whats that?
Mr. Plummer: Its here. Orange Bowl Special Obligations of the City.
Mr. Gunderson: It was not to our benefit to redeem the ones on the Orange Bowl
because we could utilize the funds.
First of all, the capital improvement bonds that Commissioner Plummer just spoke
to, are paid through the Franchise fees - FPL. Those monies are used to pay off
that indebtedness. Those monies cannot be per the trust agreement when you sold
those bonds, cannot be used for any purpose other than payment of the indebtedness
on those bonds and secondly, for capital improvement purposes.
The extent to which you needed those funds over and above capital improvement
purposes, you must first pay those bonds off. If you needed $1, you would have
to pay them off.
Mayor Ferre: In other words, this was a deliberate thing on our part, it was not
a mistake or anything like that?
Mr. Gunderson: No, it was very deliberate. We tried, there is a resolution that
We inttoduced in the middle of the year in order to limit the amount of our expos-
ure so that we could still have our cake and eat it too. What I tried to do was
to set up a reserve account that would attempt to meet the bond requirements and
still let us earn interest and spend the money from the franchise fees but, unfort-
unately, the trustee would not accept that.
Mayor Ferre: I see.
Mrs. Gordon: In other words, get this straight, we paid off approximately the
32 million, $3,257,000 in order to free up the million and ninety --one that we
transferred to the General Fund?
Mr. Gunderson: That's correct.
Mrs. Gordon: And we couldn't have transferred it to the General Fund if we hadn't
paid that off?
Mr. Gunderson: That's correct.
Mayor Ferre: I see, ok.
Mrs. Gordon: Then prior to that happening...
Mr. Gunderson: And that's only the first million. See, over and above that,
that was originally intended to be done the last fiscal year not this fiscal year
but because we had not taken the steps to redeem the bonds we could not do that
legally so it was held over and done this year. Over and above that you also
transferred two and three-quarter million into the General Fund this year...
Mayor Ferre: Mr. Bailey is the one who set that whole thing in motion as I recall
and it was Paul Andrews' recommendation and the purpose of it as I remember, and
I'm going back two years. Wasn't this done? The idea came up around two years
ago.
Mr. Gunderson: Yes.
Mayor Ferre: It was to free the FPL Franchise Funds so that it could be used for
other purposes.
Mr. Gunderson: Right.
Mrs. Gordon: There were other.... Do you want to say something?
Mr. Charles Hall: If I could. I have a little different idea about what happened
there and I'll give it to you just for whatever it is worth. One is that as I
read the memo and the resolution, the intent of that was to set up a reserve account
to pay those off as they become due and payable and that is the specific language
of the memo that was entered. However, once they transferred the money from
Capital Improvement into the Bond Reserve Account it triggered an automatic sys-
tem already set up in the ordinance that set those bonds and then they couldn't
retrieve it. Once they did that it was beyond their control.
Mrs. Gordon: That's what he just said.
Mr. Gunderson: That's waht I've already said. We could not do it by setting up
a separate bond --- They would not accept the basis upon which I was trying to
hold the money to still make interst and still use the surplus franchise fees.
Mayor Ferre: Let me ask you this, what interest are we paying for the bonds we
redeemed?
Mr. Gunderson: About 4%.
Mayor Ferre: That's why they wanted to pay because they were real happy to get
them paid.
Mrs. Gordon: Sure they were. I think it was even less than four, it was in the
three something.
Mr. Hall: Some of them were three's, they came from back as far as 1954 but I
don't think they were all of the same....
Mr. Gunderson: No, they were a different series.
Mr. Hall: They were different series but the point is the honey was already in
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Capital Improvements and could have relieved money in that Capital Improvemeht
Fund that could have been used in the General Fund, that's the whole point,
Mrs. Gordon: Could you have done that?
Mr. Gunderson: No. The only funds available in that fund were FP&L Franchise
moneys.
Mr, Plummer: Mr. Grassie, I think this brings up a good thing. Are all of these
department heads going to be at that meeting tomorrow?
Mr, Grassie: Yes, unless they're sick or out of town.
Mr. Plummer: Ok, I just wanted to know.
Mrs. Gordon: Just one question, Maurice, on this same thing that we were talking
about for information only. What interest do our funds earn if we have them on
deposit now? If we had $3,000,000 sitting in some lending institution what would
they pay us?
Mr. Gunderson: Ok, it v-ries, it depends on the market at any particular time.
The early part of this year we were talking in terms of 41%. Right now we just
put a million nine hundred thousand at 6.5.
Mr. Plummer: That's all?
Mr. Gunderson: That's all that came due and payable.
Mayor Ferre: Well what do you mean that's all► that's one of the highest w
had in years.
Mr. Gunderson: That's correct, that is the highest we have.
Mayor Ferre: In what, the last four years?
Mr. Gunderson: No, I don't know how long but a couple of years, but it is the
market condition and what we do is we survey the entire market not just locally
and we get bids from all the banks to ascertain that we're going to get the high-
est interest rate in accordance with the Charter and that's what we do. When we
find out we have to select the time limitation and then the kind of investment
and the amount. Those are three...
Mrs. Gordon: Mr. Gunders what bothers me somewhat is that we paid off such
low intcrest costs and that we didn't take advantage of keeping it and drawing the
difference and then figuring that that was offsetting that million that we used
to transfer to the...
Mr. Gunderson: But you have no other choice, that's the point.
Mrs. Gordon: I didn't? Why?
Mr. Gunderson: The choice that you had if you wanted to use one dollar from the
FPL Franchise moneys...
Mrs. Gordon: Even the interest portion?
Mr. Gunderson: Let me finish. One dollar from the FP & L Franchise Revenues, if
you wanted to use one dollar for operating purposes in the General Fund you are
required to redeem the bonds. Now you didn't use one dollar you used one million
to start off with, over and above that you used 2.75 million and you're scheduled
to use 3 million next year, so it isn't one dollar. It is a falacy to think in
terms of saying hey, and that's what that resolution that you passed, that was my
attempt to do, to do the very thing that you wanted there was to set up a reserve
so we didn't have to buy them back, use the interest money, invest them and so
forth but the trustee would not buy that.
Mayor Ferre: All right, now back on the Orange Bowl, how much do we owe at the
Orange Bowl?
Mr. Gunderson: Approximately 550,000.
Mayor Ferre: So how could we have $75,000 worth of interest unless it is
est and debt amortization? Oh, it's debt service,
Mt, Gundetson: That's right.
Mayor ?erte: Now let me ask you this, Mk. dehhings, how Ruch money da you estift&
ate we lose at the Orange Bowl?
Mr. Jennings: Presently, sir?
Mayor Ferre: Cash flow deficit.
Mr. Jennings: Well, there is if you will notice on page 22 of the Budget Estim,
ate book there is $223,172 flowing from the Orange Bowl into unallocated funds.
The revenue estimate this year, forthcoming year, is $1,052.800, the operational
costs are $829,628.
Mayor Ferre: So it is a contributor then.
Mr. Jennings: In a sense it is. Now there are things, of course, that don't
reflect in your budget, for instance the bond, the $171,000 worth of bonds I would
presume would have to be considered.
Mayor Ferre: I think the point I'm trying to make is that there have been state-
ments made, Mr. Garssie, at different times that the Orange Bowl, in fact, was
costing the City of Miami money. The fact is if you look at these figures it is
not costing us money.
Mr. Grassie: That's not true, Mayor. That's an operating statement, it does not
include debt service. Assuming that the Orange Bowl pay off its own debt service..
Yes, but that's not all the debt service. That's the point that he was making
while ago.
Mayor Ferre: Is this or isn't it the Orange Bowl Budget Estimate for the forth-
coming year? Shouldn't a budget estimate include in it the total debt service?
Mr. Grassie: It very well could, my understanding of the answer that he gave you
was that the $75,000 that was in the budget is what is required be in the Orange
Bowl Budget by an ordinance. Now the other debt service which is not required be
there by ordinance is taken from FP & L.
Mayor Ferre: But, if we only own $500,000 then obviously....
Mr. Gunderson: The exact figure is on page 186.
Mayor Ferre: Then obviously the debt service isn't going to be substantially
more than that. It might be a little bit more but you're not talking about two
or three hundred thousand dollars.
Mr. Grassie: It's in round figures $172,000.
Mayor Ferre: But there is sufficient cash flow because you have a positive cash
flow at the Orange Bowl of 223,000 less what?
Mr. Jennings: Yes, 171.
Mayor Ferre: So then I say my question: Then that means that there is no drain
from the Orange Bowl, is that correct?
Mr. Grassie: This next year. The statement that you have heard was six months
old. Since then two things have happened. We have negotiated a contract with
the Dolphins which double our income from the Dolphins and we have reduced our
expenses so at this point we have got about a $30,000 cushion. Ok? Last year
we had a $200,000 deficit.
Mayor Ferre: The same question for the marinas, how much are the marinas?
Mr. Jennings: Well, the marinas, Mr. Mayor, in accordance with the ordinance which
we recently passed governing dockage rates the marinas are a wash out. If you
remember dockage rates were set
Mayor Ferre: That's my question, is it a drain to the cash flow of the City o
Miami yes or no.
Mr. Jennings: Not at the moment, no, ei
Mayor Fefre: Ok. ,Now the next one is ...
Mr. Grassie: The summary if you want that on one page, Mr. Mayo-, is Oh the ;cite
sheet page 22.
Mayor Ferre: Yes. So the Miami Stadium is costing us approximately 60,000?
M. Jennings: Yes, sir.
Mayor Ferre: The Marine Stadium is 219,000?
Mr. Jennings: Yes, sir.
Mayor Ferre: Auditoriums which includes Gusman Hall?
Mr. Jennings: No, sir, it does not, just Dinner Key and Bayfront Auditoriums.
Mayor Ferre: Dinner Key and Bayfront----Dallas Park. Ok, I have no other questions.
Anybody else?
Mrs. Gordon: We determined on DAllas Park that we could overcome some of the
projected deficits, however, I would also like to ask you whether or not you
allocate a portion of the still remaining deficit because there probably will still
be a remaining deficit to those occupants, departments that are occupants of the
building or not? Do you do that, do you allocate that in any way?
Mr. Grassie: I'm not entirely clear on what you're asking me, Commissioner.
Mrs. Gordon: Well the occupants are certain departments of the City, I realize
other departments are not being charged with that kind of a rental scale but I
just ask it as a matter of information.
Mr. Grassie: No, we're not except where we have a federal program which makes us
eligible to charge rent for space, in that case we charge...
Mrs. Gordon: For reallocation.
Mr. Grassie: Yes, but if it is a City supported activity then no, we do not.
Mrs. Gordon: Are there any federal projects that are in there that would be re-
imbursable by the project?
Mr. Grassie: Yes, we have part of the C.E.T.A. administration activity in there,
that that relates to the supervision of social service contracts and I have the
impression although I would have to check it for you that we are getting some
rent through that vehicle.
Mrs. Gordon: Ok, then it is likely that the deficit would be still less than it
is portrayed here in the blue page, right?
Mr. Grassie: Yes. I think that if we followed the suggestion that you are mak-
ing about ten days ago with regard to the occupants, and assuming that we can move
them out in a reasonable period of time that we ought to be able to decrease this
deficit.
Mrs. Gordon: There is also the consideration in line with that, if we
bursed by the federal projects that are housed in that building would
then say, "Ok, for that you pay us taxes?" Is that a possibility?
Mr. Grassie: No, if it is governmental money, if it is federal money
would not tax us for that.
get reim-
the county
then they
Mrs. Gordon: The whole governmental picture is exempt, Ok.
Mr. Hall: I don't want to belabor a point but I used to be a detective and I
asked questions and the answers raised other questions and you keep asking quest-
ions until you're satisfied with your answers. Concerning the transfer of moneys
that we were talking about, the $3,000,000, we had a discussion with Mr. Gunder-
son and he referred us to the trustee and we had a discussion with the trustee
and they referred us to Mr. Gunderson and we again had a discussion then we had
a rather animated here with Mr. Grassie and we were instructed to do some read-
ing. Well, we did some reading, we got some papers and we looked at it and I'm
still somewhat confused and I just want to reconcile in my mind what is going
on here especially since I'm confronted with explaining to 19 police officers
that they're going to be laid off. if we had asked a question of Mr. Gunderson,
if we transferred the city, and I say we as a collective entity I accept some re-
sponsibility for everything the city does, if the city transferred $3,257,316
consistent with Resolution NO. 77-72 into the capital improvement fund and left
it there and then each year transferred an amount necessary to pay off the bonds
as they matured in each given year would we then have any difficulty spending
FP & L Franchise moneys. In other words instead of paying off all the thing this
year as we did, September of 1977, if we just left it in the Capital Improvement
Fund then each year transferred a given amount of money into the reserve account
to offset the interest and principle that was due each year would we have any
difficulty spending franchise moneys?
Mr. Gunderson: Yes.
Mr. Hall: Ok, and what is the authority for that difficulty?
Mr. Gunderson: The authority is the trust agreement and the bond indenture that
you entered into at the time of the sale of the bonds.
Mr. Hall: As contemplated and outlined in Ordinance 5090, is that what you're
talking about?
Mr. Gunderson: Possibly.
Mr. Hall: Do you have a reference or can you obtain a reference to a paragraph
number for me to explain that? It's unclear in my mind, I understand why it is
and I know the paragraph here that outlines should you at any time have an amount
sufficient in your reserve account and the other accounts outlined in the ordinance,
should you have that amount of money and the trustees explained this to me, they
are they obligated to the bond holders, they are required to the bond holders and
they are subject to civil suit if they didn't do as was outlined, to call in the
bonds which they did this September.
Mr. Gunderson: In that ordinance you will find it says specifically that you can
only do two things: (1) spend franchise moneys for capital improvements or the
payment of interest and principle on the indebtedness. That's it, period.
Mr. Hall: CAn you cite me or can you cite me later where it says this?
Mr. Gunderson: Yes, I can give you the exact, I'll show you the ordinance.
Mr. Hall: I've got the ordinance but maybe you can'show me the page. I'd apprec-
iate it. Thank you, I didn't mean to tak up your time.
Mayor Ferre: All right, Mr. Manager, we'll ask the Building.
3. PRESEVTATIOi'J OF BUILDING a VEHICLE 114INTE'tANCE BUDGET PROPOSAL
Mr. Grassie: If you would like then, Mr. Mayor, then we will go to the Building
and Vehicle Maintenance Department.
Mayor Ferre: All right, sir.
Mr. Grassie: That's page 190.
Mr. Eddie Cox: Mr. Mayor and commissioners, my name is Eddie Cox, Director of
the former Department of Public Properties. We will be known as of Qctober 1st
as the Department of Building and Vehicle Maintenance. There have been several
areas of impact upon this department's budget this year some of which came about
as the result of reorganization; that is that the Communications maintenance oper-
aion will now be treated as an intergovernmental service division within my depart-
ment. We will incorporate that into our department commencing October 1. By Oct-
ober 1 the following year those charges will be identified by department that
should be assessed for those departments, the services provided. The second major
impact is that we are building as you probably all know a new Heavy Equipment Ser-
vice Facility. My department did receive, the city did receive a Public Works
Act grant for the construction of a new facility. We hope to be in that new facil-
ity prior to October 1 of next year, we're hoping for that. That does constitute
a rather large impact upon the department in that the moving and transition from
the present facility to the new facility will be somewhat traumatic and because
our equipment must continue to roll and must continue to operate it is going to
take some amount of planning and scheduling to accomplish this without the loss
of service. As you also probably know my department functions based upon the de-
mands of the using departments throughout the city in the area of vehicle needs,
vehicle maintenance, building maintenance, custodial maintenance and now
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coMmunication maintenance are the primary functions. Certainly important is the
Print Shop operation, the Print Shop falls within the intergovernmental services
and is a function of my department. The entire department was reduced in personnel
by eleven this year. We were able to lessen the impact by using vacant positions
in lieu of having to entertain the idea of any layoffs so we have met our budget-
ary requirements and that of the using departments and their requests upon us at
this time. I think that just about sums up the budgetary impact upon the depart-
ment. If you have any questions I'll be happy to answer them.
Mr. Plummer: Did you ask for anything in your budget that was essential to the
operation that you did not get?
Mr. Cox: No, sir.
Mr. Plummer: Is there anything that you feel that we ought to know about your
budget that hasn't been discussed?
Mr. Cox: Well, I think as the Manager has probably brought out prior there will
be some additional impact upon my budget if some of the cuts by other departments
are not realized. Obviously if a department has assumed that there will be a
vehicle reduction as an example within that department and we have thereby only
budgeted for the lesser number of vehicles and if they are, in fact, put back or
are required to be put back then there will be required an adjustment in my budget,
yes.
Mr. Plummer: Is it true that you charge the same rate per mile for a horse that
you do a garbage truck?
Mr. Cox: No, sir, I don't furnish anything for the horses except the van that they
haul them in.
Mrs. Gordon: Eddie, I notice that you're absorbing the Communications Department
under your division but - Communications Maintenance.
Mr. Cox: Yes.
Mrs. Gordon: Ok, but that was an item of almost $700,000 but your budget doesn't
reflect anywhere near that kind of an increase from last budgeting year.
Mr. Cox: Commissioner Gordon, I asked the City Manager and he and I spoke on
this that it would have been impossible for me to include that into intergovern-
mental services this year. I asked that he give me a year to develop historical
data. It has been a General Fund operation to move it into the intergovernmental
services or working capital fund concept I could not accomplish without historical
data. So it is funded through the General Fund Account although it is part of
intergovernmental services.
Mrs. Gordon: I see. In other words your budget is not reflecting the cost factor
of that particular operation.
Mr. Cox: No, ma'am, not in intergovernmental services. No, it is not. It will
be next year.
Mrs. Gordon: Thank you, I was just curious as to what kind of a magician you were.
Mayor Ferre: All right, thank you very much.
4. PRESEINTATION OF C&PLf1EP5 P'1D OEYW
!CATIONS BUDGET PPOPOSAL
Mr. Grassie: The next department, Mr. Mayor, is Computers and Communications.
will ask Eric Wilson to describe that budget to you which is on page 199.
Mr. Eric Wilson: Mr. Mayor and members of the commission, the Department of Com-
puters and Communications is a new department. It is a combination of parts of
the old Department of Communications, 33 positions have come from that department
to facilitate dispatching, Centrex switching, planning and contracts. That's the
telephone contracts. Nine positions have come from the Police Department, those
are for Computer Operations, computer maintenance, key punch and clerical funct-
ions. Computer development has remained with the Police Department. Twelve posit-
ions have come from the Management Services Department bringing the entire computer
operation out of the Management Services Department. The Department of Computers
and Communications is three divisions, the administration division with eight posit-
ions, the communications division with 27 positions and the computers division with
a total of 21 positions. The personnel changes this year from the past year when
you take the combined operation of three departments from which this is composed
is that ten positions have been cut, three of those were previously vacant and
two positions have been added. These two positions are computer systems engineers
to accomplish in-house maintenance. The reason that we need in-house maintenance
and the reason why we are hiring two positions is because we have investigated the
cost of contractual maintenance which amounts to approximately somewhere between
100,000 and $135,000 annuall. So we feel that by hiring some in-house maintenance
technicians and paying spare parts and training at a total cost of $70,000 it will
be an enormous saving for us.
Mr. Plummer: That sure tells what SRI had to say, doesn't it?
Mr. Wilson: I don't recall what they said, sir.
Mr. Plummer: About taking out of house contracts for maintenance as opposed to
in-house maintenance.
Mr. Grassie: I think in-house maintenance is cheaper, yes, sir.
Mr. Plummer: Oh but boy, we paid the experts. We got it alright.
Mr. Wilson: The impact of cutting the ten positions is that from 5 P.M. to 8 A.M.
there will be a reduction of service in the Communications Division mostly in the
answering of telephones. We will have a recorded response to the Miamarina phone,
a recorded response to 579-6666 and mlbile phone response may be slow if a fire
emergency is in progress and the bypass operation will be slower during those
times. We have a potential build up of overtime in communications, that is not
necessarily to say that it will happen but because we're near the limit on our
people it could happen. We'll have a difficulty in retaining bilingual operators
simply because those were the last to be hired, retaining a bilingual operator on
each shift is what I mean.
Mrs. Gordon: Would you say that again? You say that you would have difficulty
retaining your bilingual operators because they were the last hired on all shifts,
is that what you said?
Mr. Wilson: We will have difficulty retaining on each shift a bilingual operator
because the bilingual operators are the ones we'll be losing.
Mrs. Gordon: Yes, but you'd have a real serious problem in that approach even
though and that is because in Communications more than in any other facet of our
city government we must respond to all people.
Mr. Wilson: Commissioner, we will be trying to retain a bilingual operator on
each shift and we will do everything we can to do so.
Mrs. Gordon: Yes, but I think that we must. Mr. Grassie, you know what I'm say-
ing and I think it is absolutely necessary without a question of doubt that that
be something that you say you must retain, coverage on every shift. It's a matter
of logic.
Mr. Grassie: I agree with you entirely in terms of objective, it does have to do
with seniority.
Mayor Ferre: It may have to do with seniority but I'll tell you you tell that to
the parents or the children of somebody who is going to die in a fire or isn't
going to be rescued.
Mr. Grassie: Well, I agree with you in terms of the problem...
Mayor Ferre: Well then how do we go about solving it?
Mr. Grassie: Well, really the only solution is to secure a special exemption from
Civil Service Rules which would allow us to lay off in a pattern different than
strict seniority
Mrs. Gordon: Well, I'd move it then because I think that it isn't a matter of you
know only strictly one consideration, it is a life and death consideration and
that is the thing that we have to be more concerned with than anything else,
Mr. Wilson: Could I speak to that for just a second?
10
Mayot retie: Well this is a motion, we're really not in session.
Mrs. Gordon: It's a motion of intent.
Mayor Ferre: Yes, it's just a matter of opinion, you'll have to put
lution form then.
Mr. Plummer: But I'd still liek to hear from him....
Mayor Ferre: Yes.
Mr. Wilson: Well, ideally if you have ten people we can have one bilingual oper-
ator on each shift. In January I lost three operators due to cutbacks and they
were all bilinguals because they were the last hired. I have one vacancy now
that is bilingual. That's going to leave me with six bilingual operators and it
will be difficult to maintain one on each shift, it takes five people to do it.
If I have a bilingual check out, however, we what we do is we find out what fire
station there is a bilingual fireman on duty and we call him and let him do the
interpreting for us.
Mrs. Gordon: Well, how much time lag is there in approaching it that way?
Mr. Wilson: It's a loss of time but it is better than not having any bilinguals
available.
Mrs. Gordon: J. L., do you have any objection to us setting this motion into
being? This is our feelings on the matter and the rest you know you have to see
how you can work it out but there was a motion and a second, Mr. Mayor.
Mayor Ferre: All right, there is a motion and a second, this is a motion of intent
and I guess we would have to go back into a formal session to do this so I hereby
call a special commission meeting for the purpose of recognizing Mrs. Gordon for
a motion.
Mr. Grassie: If you just give us a concensus, if that's what you're going to do...
SPECIAL COMMISSION MEETING:
The following motion was introduced by Commissioner Gordon who moved
its adoption:
MOTION NO. 77-764
A MOTION DIRECTING THE CITY MANAGER TO INVESTIGATE THE BUDGET
PROPOSALS MADE BY THE DEPARTMENT OF COMPUTERS AND COMMUNICATIONS
AND STATING THE POLICY OF THE CITY COMMISSION THAT EACH SHIFT
HAVE AT LEAST ONE (1) BILINGUAL PERSON ON DUTY AS COMMUNICATIONS
OPERATOR.
Upon being seconded by Commissioner Reboso, the motion was passed and
adopted by the following vote -
AYES: Commissioner Manolo Reboso
Commissioner J. L. Plummer, Jr.
Commissioner Rose Gordon
Vice -Mayor (Rev.) Theodore Gibson
Mayor Maurice A. Ferre
NOES: None.
SPECIAL MEETING ADJOURNED
Mayor Ferre: We're back to the budget.
Mr. Wilson: There will also be a potential build up of key punch overtime
if we have an extended absence or vacancy but again that is not necessarily
going to happen. There will be an elimination of around the clock computer
operations coverage at the Police Department.
Mr, Plummer: Was there anything you asked for in your budget you felt was
essential to the operation of your department which was denied?
Mr, Wilson; No, sir.
-n:
Mr Plummer: Let me ask you a question, maybe this is not the tithe to do it but
just throw it out. I would like to see a report drawn, you know we've spent
Millions of dollars on computers, accessory items relating to computers and an
awful lot of money on people for computers. After we've been what now, a year
on computers in the Police Department approximately?
Mr. Wilson: About a year.
Mr. Plummer: I'd like for you or someone to develop a paper telling me how
life is better now that we have those computers because I'm going to tell you
something, I don't see it. Hey please, this is not the proper time but I want
to tell you I'm going to be looking for that paper in the next 60 days.
Mr. Wilson: Yes, sir.
Mr. Plummer: I want to know after all these millions of dollars that we've
spent how life, ...the delivery of the police service to the public is justi-
fied in the spending of those millions of dollars. Mr. Grassie, with your
permission, of course, sir.
Mr. Grassie: We certainly will do that, Commissioner. That kind of report
has to include a report of how life would have been worse, of course, without
it.
Mr. Plummer: Oh, very definitely.
5. PRESENTATION OF HUMAN RESOURCES BUDGET PROPOSAL
Mr. Grassie: If you would like, Mr. Mayor, then we would move to the Human'
Resources Department which is page 57.
Mr. Robert Krause: I'll begin with a few very brief comments about the budget.
Two positions have been eliminated from the previous staffing level which is
not apparent from the bdget itself because we also added two positions by trans-
fer of additional functions into the department. The two positions that we
would be losing would be one in the Employees' Health Clinic and the training
officer in the Human Resources Department. The only large dollar increase
that is represented in this budget is under the heading of Fixed and Sundry
Charges. This includes $100,000 for back pay under the Consent Decree and it
also includes a prorata share of fringe benefit costs. The budget does not
reflect any increase in staffing to assure compliance with the Consent Decree.
We submitted a supplemental budget request on that, we are hopeful that we
will be able to fund the positions primarily out of CETA and possibly to some
extent out of the Contingency Fund.
Mayor Ferre: Are there any questions of Mr. Krause?
Mrs. Gordon: Do we address you also for Civil Service? Ok.
Mr. Grassie: That's on page 37, Commissioner, and would be coming up immed:
iately if you'd like. Shall we move to that? That's page 37.
6. PRESENTATION OF CIVIL SERVICE BUDGET PROPOSAL.
Mrs. Gordon: In reading the Civil Service Personnel in the budget I found
the elimination of the Executive Secretary's salary, I'm not complaining be-
cause we have less salary, I'm just curious what happens if it is not a
budgeted item and if things should be different than they are today where you
sit with two hats or two positions. How do you explain that, somebody? What
happens if, you know?
Mr. Krause: I did discuss this with the City Manager, received his assurance
that if the situation changes, if there is a need to have an Executive Secre-
tary appointed other than myself that it would be necessary to reduce one of
the positions that are now in the budget but it would also be the City Man-
ager's intent to provide whatever additional funding might be necessary by
transfer of funds in order to provide that kind of a position.
Mrs. Gordon: From some other positions of another section of the budget or
what? From Human Resources, or what, where would you get it?
Mr. Grassie: Well, we would first look within Civil Service, Commissioner,
to see whether we had some line item that was not fully expended and that
we'd make the transfer there. If that were not sufficient then we would have
to go to some other place in the City Budget to find the money.
1.2
Mrs. Gordon: You don't feel at all concerned about being able to supply it if
it should become a necessity? I'm not saying it is but it is a matter of know=
ing if.
Mr. Grassie: No. It is the size contingency that we certainly can take care
of in the budget.
Rev. Gibson: Mr. Mayor, what I think I hear is what I hope I'm not hearing.
Are you telling me that you don't now need an Executive Secretary of Civil
Service, is that what we're saying?
Mr. Grassie: No, sir. Mr. Krause is the Executive Secretary to the Civil
Service Board and sits with them whenever they have a meeting.
Rev. Gibson: Well, that's what I heard. What I'm trying to understand is
what I hope I'm not understanding. Suppose you aren't there tomorrow, suppose
you leave the City and go elsewhere, I want this commission to hear this be-
cause in administration you know you've got to wonder about this. Are we devel-
oping the system so that you will have continuity of operation meaning that a
man who fills the position you now fill, will it be expected and required of
him to do the same thing, perform in the same manner in which you are perform-
ing or at that point in time because of difference in personalities we go back
to the two positions? That's what I'm asking.
Mr. Grassie: Well hopefully you would continue with one person filling those
two responsiblities since they are so inter -related. That would be the most
logical course of events so that you would have no discontinuity really.
Mrs. Gordon: Yes, but I think what Father is driving at and what he's trying
to get across is that that position, the one of the Executive Secretary is an
elected position by choice of a majority of five people that sit on a board
and we don't control their vote and they are totally independent of us and of
yourself too so we can't be sure that in the event Mr. Krause wasn't elected
or even that he would be re-elected or selected next year because I think it
is an annual renewal isn't it?
Mr. Krause: There is no set term so there is no...
Mrs. Gordon: Oh, well the Executive Secretary of the Planning Baords used
to be.
Mr. Krause: I serve at the pleasure of the Civil Service Board.
Rev. Gibson: Therefore, my concern becomes far more important than I've ex-
pressed, very important because today or tomorrow if Civil Service decides
that they don't want you they could do it. That's exactly what I'm saying
and I think that this commission ought to hear that because sooner or later
that might happen. They may decide that they don't want you and that you
then must work for, under the Manager, and then you know they get them some-
body else. The only thing I'm saying, Mr. Manager, it seems to me that we
ought to operate with the full knowledge and understanding that either we're
going to change the system and go through the Charter like you know you talk
the secretary jazz or either leave that salary there so that the people have
the flexibility. One of the dangers is if they don't have that flexibility
there is the thing saying to them, well you know don't move him because.
They may not want you .
Mrs. Gordon: There's no money in the budget.
Rev. Gibson: Right, and they want to have the right to get rid of you if you
want to. That's the point I make.
Mrs. Gordon: I think then that what Father is saying, and I understand the
reasoning behind it is that there ought to be a line item budgeting a specific
sum for a position that is supposed to be filled by Charter.
Rev. Gibson: Right. We could get rid of the position.
Mr. Grassie: We can do that if you wish or you can consider that the Conting-
ent Budget simply always allows you that flexiblity and any time you want to
you can provide from that but you know it is your option we can do it any way
you wish. It is up to you.
Mrs. Gordon: What do you think is better?
Mt& dfassie: the money is always going to be there.
Rev. Gibson: I think the item ought to be there so that the board has the tight
under the Charter, that's what you all said earlier, if the 'right is there when
they don't like the way you tango they get rid of you. That's right. And that
there is never any remorse of conscience on their part nor hesitancy on their
part that they have a man who is serving them but they don't particularly want
and that they don't get rid of him because. I want the line item so they could
always have the right to choose. I move that the line item be specifically
stated and whether you use it or not you know you could always use the money
at the end of the year, transfer it out, I understand that. That's the way I
run the church, I transfer in a minute.
Mr. Plummer: Second.
Mr. Grassie: Well, if you simply indicate what you want really that's all
that's required.
Mayor Ferre: Are you for it? Everybody's for it.
Mr. Grassie: We're all set.
7, PRESE'dTATICN OF FINANCE & PENSIM BUDGET PROPOSAL
Mr. Plummer: All right, let's go to Finance and Pension.
Mr. Grassie: If you would like to move them to Finance and Pension, Mr. Mayor,'
that's page 44.
Mrs. Gordon: One second before you speak, Mr. Gunderson, to Mr. Grassie, there
is another position which is similar to Mr. Krause's and that one person is
filling two positions, Mr. Fosmoen. He is the Planning Director, he is also
one of your assistant managers. In the budgeting I didn't look to see, did
we budget a director's salary into the Planning Department?
Mr. Grassie: Yes.
Mrs. Gordon: Did you also budget the salary as one of your assistant managers?
Mr. Grassie: Yes.
Mrs. Gordon: Oh, so you do have that flexibility there of retaining him as
one entity...
Mr. Grassie: Well it's not a flexibility it's just that the Planning Director's
position is now vacant and it is going to be filled and it is budgeted. Yes.
Mrs. Gordon: THen it is really the same idea as Father Gibson has moved, keep-
ing the position funded allows the position to become filled if such a necess-
ity comes about.
Mr. Grassie: That is correct.
Mr. Gunderson: The Finance Department is going to spend the coming year a
million, three hundred and two thousand as opposed to this year two million,
eight hundred and forty thousand.
Mrs. Gordon: What page are you on, sir?
Mr. Gunderson: Page 45. The major distinctions for this seeming decrease
revolve around the dissemination of workmens' compensation throughout the
budget as opposed to a line item previously entered in the Finance Department.
We distributed approximately a million, seven hundred thousand in this year's
budget which actually increased next year as well to approximately two million
seven so Workmens' Compensation as an item is now reposed in each of the bud-
gets and not in the Finance Department.
Mrs. Gordon: I have one question to you with regard to you. The total of
all those line items that went into the departments, do they total the differ-
ence between the last year's budget and this year's budget for your department?
Mr, Gunderson: No.
14
Mrss Gordon: Ok. Then What is the difference?
Mr. Gunderson: The additional increase is approximately $220,000 over and aboue
last year's budget as noted in the notation on page 45. That is composed mainly
of the distribution of those fringe benefits that heretofore were under Special
Programs and Accounts just as all the other departments have testified to.
Mr. Plummer: What is Workmens' Comp. costing us a year?
Mr. Gunderson: This year it is over two million three, next year it is about
two million seven.
Mr. Plummer: That's the city's cost for Workmens' Comp.?
Mr. Gunderson: Yes.
Mr. Plummer: What is the City Attorney's Unemployment Compensation?
Mr. Gunderson: It is negligible now and I can't give you a specific figure.
Mr. Plummer: Are you still being foreced to keep a reserve?
Mr. Gunderson: We're not keeping a reserve for that purpose, Unemployment
Compensation. We pay directly from the department budget in the case where
we hold a liability and it is passed on to us from the state. Our budgeted
positions have declined from the permanent from 67 6o 64 and in spite of the
decline of 3 we also had a decline if you recall earlier this year of an addit-
ional 5 but we feel with automation coming into its own we will begin to
accelerate not only our processing which we have done, and I'll give you a
aetir,i*p illustration for Mr. Plummer's edification of what Data Processing
does for you. In the Finance Department where Data Processing has been con-
centrated heretofore years ago you were paying vendors on a bi-weekly basis,
actually it was the loth and the 20th of the month. We have now accelerated
that so that we get our discounts to every Friday we pay. Now sometimes we
miss a Friday because the machine will break down but normally we catch up
the next Monday. Basically we are on a five day pay basis now so that we
eliminate the agitation that would be received from vendors who previously
got unhappy about the length of time that they had to wait in order to get
paid. It is a definite advantage of Data Processing. In fact, it will even
accelerate as time goes by. The strength of the department, though is at a
point where as Data Processing improves we will be able to take on more and
more things and do them faster and we hopefully look forward to that because
we hopefully look forward to better Data Processing environment.
Mr. Plummer: Mr. Gunderson, in private industry and other municipalities that
you know of what is the normal percentage of pay attributable to hospital and
life insurance? You show here that we're paying about 4%.
Mr. Gunderson: We pay $5,000,000 combined employer -employee for group insur-
ance.
Mr. Plummer: Do you figure that insurance is high or low?
Mr. Gunderson: I think it is high in comparison to other places.
Mr. Plummer: Why do you say that?
Mr. Gunderson: From a percentage point of view I think that in dollar -wise
for the number of employees on a per capita basis it is high. There are ways
that I think that we can, and we are exmining and we're going to present to
the City Manager in the very near future methods whereby we can reduce that.
It revolves around 3 possible approaches. One is to use an outside insurance
firm only for the processing of the payments and not handling our reserves or
•using any other firm to process payments or (2) we can look at it as being proc-
essed in-house in relationship to the ... Ok, but those are ways that you can
look at in order to find out whether it is possible or not. We're not saying
at this time... but we are trying to keep down the costs.
Mr. Plummer: Mr. Gunderson, your opinion as it relates to paying a fringe pack-
age of 47.61%, can the city survive?
Mr. Gunderson: Well, I think that when you relate it to the 10 mill that you
have a disproportionate amount of employee benefits that are being paid from
the 10 mills. You say that you have dedicated almost 4 mills to the payment of
pensions alone then you're at 40% of your 10 mill limit and it is an approximat-
ion.
15
Mt, Pluthfnet: You didn't answer my question.
Mt, Gunderson: I'd say it's high.
Mr. Plummer: I didn't ask that question. I said cah the city suttiVe paying a
fringe package of 47.61% in your professional. opinion. He understands what I
said, he speaks Greek.
Mr. Gunderson: Sure you can survive this year, next year, but it's all depend.,
ent upon your salary scales because some of these things are percentages of sal-
aries.
Mayor Ferre: Dependent upon whether or not the federal government is going to
keep on playing Uncle Sam. If the federal government continues to subsidize the
City of Miami because right now if you look at the $125,000,000, $120,000,000
that we're going to spend you'll notice that out of that $70,000,000 comes from
Uncle Sam and otherwise.
Mr. Plummer: Mr. Gunderson, since your office is in charge with the pension con-
tributions was there any consideration given to a proposal which I made many many
years ago and have on subsequent occasions to stop the present pension fund let's
say as of October 1, 1977 and all new employees go into the state fund?
Mr. Gunderson: We did not undertake anything of that nature.
Mr. Plummer: Why? Don't you consider it to be a viable alternative?
Mr. Gunderson: Sure, anything is...
Mayor Ferre: I want to tell you you've got two votes on this commission that I
know of.
Mr. Plummer: I don't know that you've got one, I'm just asking was it considered.
Mr. Gunderson: It was not considered in those terms.
Mayor Ferre: You -do have one vote.
Mr. Plummer: Don't depend on his.
Mrs. Gordon: Well, I'm going to say what I think about that state pension system.
I think that pension system is so badly under funded and the unfunded liability
on it is incredible...
Mr. Gunderson: It's over $3,000,000,000.
Mrs. Gordon: The state, yes. Let me tell you before I'd ask anybody to contribute
anything, and I don't think that the county asks their employees to contribute
anything to it, they don't participate in contributions.
Mr. Plummer: Rose, please don't misunderstand me. I'm not so-called at this
point advocating, I'm wondering. They're screaming from his department that we're
being killed with pension. Now why isn't his department coming up with answers?
That to me is a viable solution possibly.
Mrs. Gordon: There's also the investigation of the impact of Social Security
Taxes and you know half of our employees are paying it, some are not.
Mr. Plummer: .... all of your time screaming about how bad a situation is instead
of taking all of your time take half of it and try to start finding solutions.
You know I just think that viable alternative should be looked into and I think
tat is one. I might consider it to be a total waste of time but unless he is
going to develop the papers for me I don't have the time to do it nor the staff.
I think it should be given consideration as well as any other alternatives you can
come up with.
Mr. Gunderson: We have exhausted alternatives other than that one.
Mr. Plummer: Well you have exhausted them but I haven't seen it and this is where
the buck stops. As a matter of fact let me request of you any alternatives that
you've developed that you send me a copy of.
Mrs, Gordon: Also in your investigation also the impact of the increased Social
Security Tax that is contemplated,...
1.6
I
77
Mf3_Piufi'Ciett Rose, you've got that right here in his memo dated 9-14.77 in which
he,,:
Mrs, Gordon: I don't have it.
Mr. Plummer: Yes you do, he sent it to everybody.
Mrs. Gordon: Alright, I'd like another copy then. May 1 have a Logy of your
copy?
Mr. Plummer: It would be my pleasure.
Mrs. Gordon: Thank you.
Mr. Plummer: Did you ask for anything your department which you considered essent-
ial to the operation of that department that was denied?
Mr. Gunderson: No.
Mr. Plummer: Is there anything we ought to knout about your department that hasn't
been discussed?
Mr. Gunderson: Not that I know of.
Mr. Plummer: Is there any way that your department could have cut more corners
and made more savings?
Mr. Gunderson: With an expenditure of more money.
Mr. Plummer: Huh! You know I laugh but maybe we ought to know about that some
time.
Mr. Gunderson: I think it is a viable proposition and we're working on it now.
It's called your investment return and we would like to get into an automated
cash management system which would cost some money but would also increase your
return but that's a subject for a future time.
S, PRESENTATION OF TRADE AND COERCE PROMOTION BUDGET PROPOSAL,
Mr. Grassie: The next is Trade and Commerce Promotion, Mr. Mayor, that's page
145.
Mayor Ferre: Make it short, Charlie.
Mr. Charles Crumpton: This is a proposed new department. As far as the impact
upon the General Fund Budget there is no impact on that budget for all funds
come from the Community Development Funds, a carry over from last year and the
majority of it from this current year's budget.
Mr. Plummer: Did you ask for anything in your budget that you considered essent-
ial to the operation of that department that you didn't get?
Mr. Crumpton: NO, sir.
Mr. Plummer: Was any consideration given by your department of further being
able to cut your request?
Mr. Crumpton: There was no potentialities of further cut.
Mr. Grassie: We have Conference and Convention which is on page 147.
Mr. Plummer: It's part of the same.
Mr. Grassie: Is Jim Connolly going to talk to it?
Mrs. Gordon: On the Trade and Commerce Promotions, wasn't that the one we had
so much controversy about whether we wanted this department to be set up or not
and I think it was a 3-2 vote and I'm not sure, I guess that's the reason it's
in here because it was the three rather than the opposite. The moneys that are
budgeted here, $225,000, specifically, is that new money?
Mr. Grassie: No, ma'am, that is money that has been in the CD plan for two year's
now. Most of it was in the current year and some of it is two years ago.
Mrs: Coidoh In other words it is part of the Community Development moneys
that you'te taking out for this purpose, is that it?
Mr. Crumpton: They were specifically earmarked for Economic Development purposes
in the CD budgets that were approved.
Mts. Gordon: Ane where did I hear when Mr. Fosmoen was discussing the Planning
Department that CD was a part of his department now?
Mr. Grassie: The planning for the overall use, yes but not, of course, the indi-
vidual expenditures. Some things we spent through the Parks Department, Public
Works and so on.
Mrs. Gordon: In other words Community Development is in two parts?
Mr. Grassie: The administration of it is in one place but it has many projects.
At any one time it may have 30 or 40 projects going, they are funded....
Mrs. Gordon: But all of them are under the Planning Department then?
Mr. Grassie: No, ma'am, no. Some of them like this one for example would be
separate operations. Some of the money isput into the Parks Department operations
for them to build a park, for example. They would be responsible for the construct-
ion of a park.
Mrs. Gordon: How much of the CD moneys are in your department, Mr. Fosmoen?
How much money?
Mr. Fosmoen: The administration of the department is within my budget of the
operation. The administration of Community Development is within my budget as
well as dollars for planners who work with the neighborhood groups in preparing
the annual Community Development Program. We perform really two functions within
the Planning Department. One is program administration, making sure that we meet
all of the federal requirements in the administration of that $10,000,000 annual
program. Secondly, we manage and monitor a number of projects. There are some
155 projects that are funded under Community Development, Trade and Commerce Prom-
otion being one of those. We assist departments, for instance the Parks Depart-
ment we assist in setting up liaison with the community in designing a park. We
make sure that EO requirements are met. We make sure that in contracting for a
project that the department who is contracting for it follows the federal guide-
lines but we don't carry out a project as such from the department. We don't go
out and contract for the park we make sure that the contracting is done in a proper
way and in accordance with federal requirements.
Mrs. Gordon: Ok, because your budget was increased quite substantially and I
gathered that was because you were taking in this department.
Mr. Fosmoen: Community Development, that's correct.
Mrs. Gordon: But I see that there are additional moneys also being expended for
the administration of this other branch of it which is the....
Mr. Fosmoen: Commissioner, let me draw a parallel, I'm not sure that it is exact
but I think that it is similar. The Hew Washington Heights Economic Development
Committee is funded at the tune of $100,000 out of the CD program. Now we don't
carry out the activities of the new Washington Heights Economic Development Com-
mittee...
Mrs. Gordon: No, but you supervise and control don't you?
Mr. Fosmoen: We monitor their efforts to make sure that what they're doing iS in
accordance with federal guidelines.
Mrs. Gordon: You do the same for this department?
Hr. Fosmoen: Obviously, we have to.
Mrs. Gordon: You do it for all departments.
Mr, Fosmoen: For every one of those 155 projects that this ',co Mission has approved
among which is an Economic Development component.
Mrs. Gordon: You see that the moneys are spent in a proper manner if that wrier
your jurisdiction?
Mr, Fosmoen: Yes, ma'am.
18
Mrs. Gordon: Ok.
Revs Gibson: I want to ask a question. this is oh ;page 45 is it/
Mt. Crumpton: 145 and 146.
Rev. Gibson: Ok, I want to deal with 145. ... I raised this question before,
I want to make sure I'm hearing right and I'm getting the right answer. I don't
watn to come back up here and say you know, you know, you know. More than anybody
among us I think I bear some scars and wounds and some pains and some hurts and
some disappointments. I would be derelict in my duty as a Commissioner of the
City of Miami if knowingly now we start new departments and I do not raise the
question and insist as at least one member of this commission that all of the
people in the City of Miami, all ethnic groups by and large, race and color parti-
cipate. I raised that question earlier and one or two didn't understand what I
was talking about. I want to make doggone sure there is no doubt in anybody's
mind what I'm talking about. I think it is an insult, I think it is unfair, I
don't think it is even godly in a day like this to start these departments now and
don't have some black folk in there, some Latin folk in there and some white folk
in there. I can't put it any other way, I understand that, I hope you understand
it. You know because I don't think - you know I don't worry about the past.
Literally I didn't create the past I am a product of the past but I don't have to
create the ---- I don't have to tolerate the present and the future.
Mayor Ferre: Let me put it to you this way, Mr. Crumpton. If we get involved in
economic development, and I'm sure most of white American can take care of itself
in economic development, I'm not saying that we shouldn't help white America in
econimic development but I do think that where the need is in economic development
is in those who do not have and it just so happens that in our society in Miami
those that do not have happen for the most part to be black and happen to be Latin.
So I think the point is if you're going to have a department I would be hopeful
that the people that would be dealing with it would be sympathetic to problems as
they exist.
Mr. Crumpton: I understand completely.
Mayor Ferre: Did I say it right?
Rev. Gibson: That's right , sir, and I trust that as soon as you have assembled
this staff you are going to say to me whether I'm sitting up here or over there
at.the church, "Father Gibson, these are the people." The Germans say
you know and I want to see those people because if they aren't whether I'm here
or not here I'm going to be raising hell because in a day like this it just doesn't
make sense to perpetuate and continue the kind of a thing that we go to the federal
government and talk about and we ourselves don't want to deal with it.
Mayor Ferre: All right, are there any further questions?
Rev. Gibson: Mr. Mayor, I think while Mr. Crumpton is there I think I ought to
do this. I just put him, he was uneased today and I trust, I suppose, but for the
benefit of all of us who went to Washington and those of us who did not go, I
understand the Manager was incapacitated and couldn't go, he did a magnificent job
for us - a beautiful presentation and one thing I like about him he doesn't say
a devil of a lot but he performs. You need to know that therein Washington he
was approached, and Mr. Grassie, you could take pride in him. He can go to Wash-
ington and hold his own. He doesn't only hold it here he holds it up there.
Those of you who didn't see television business, I think it is Channel 10 and
Channel 7, they did us proud, the City of Miami and the ambassador was Loud in
his praise so I want you to know, Mr. Mayor, the kind of thing you said yesterday
either you had the ambassador's script or he had your's. Don't tell him I told
you that, I think that he must have read your's and made his but that's not here
nor there. I want to congratulate you and I want the members of the commission
to know you did a fine job.
Mrs, Gordon: I would say that would be a good time to sit down. I want to ask a
question, Mr. Grassie, just for clarification and that is that bond issue that
is before the voters on the Orange Bowl, is that budgeted into the debt service
for this budget year?
Mr. Grassie: No, ma'am, not until it is an obligation it would not be budgeted,
Mrs. Gordon: It's not because the validation and the process would take quite
period of time, not necessarily a year but it isn't in here.
Mr. Grassie: No, it is not in here and even if it were voted unless you authorized
us to go for the bonds, of course, we would not put it in.
19
gi eRESEUTIATtpq OF CITY CLERK BUDGET PROPOSAL -SALARY ADJUSTMENT POR
ASSISTANT LITY CLERK,
Mayor Ferre:
Mr. Grassie:
page No.32.
Mrs. Gordon:
Mayor Ferre:
Mr. Plummer:
Assistant's
Mr. Ongie:
but I...
Mr. Plummer:
What's the next thing?
The next thing is the City Clerks budget,
That's a hard working crew. Yes, indeed.
Any questions?
Yes, Ongie, what have you done in your
salary?...Is that matter resolved?
It's not resolved because it's under the
Well, it's got to be in the budget.
Mr. Mayor, that
budget to inflate youi
Commissions jurisdiction,
Mr. Ongie: Well, I put it in the budget like all other departments did for the
standard 31% and the 5% anticipated salary increases, but that's all. I did make
provision for that.
Mr. Plummer: You made some comment once before
paid more than what she is receiving.
Mr. Ongie: Yes, Sir.
Mr. Plummer: All right,
recommended?
that
your Assistant should be
now, what is she receiving now and what was it that you
Mr. Ongie: She is receiving $17,480 and I'm recommending $19,500,..I believe it
was.
Mrs. Gordon: Has that been cut down?
Mr. Ongie: No, that would be, that would be about the same as it would come out
to with the 37. and the 5% on top, it would come out to about $19,500.
Mr. Plummer: So in other words then, what you are recommending then is that her
salary be provided for the $19,000...$19,000 what?
Mr. Ongie: $19,500.
Mr. Plummer: I so move at this time.
Mrs. Gordon: Wait a second...
Rev. Gibson: Wait, let me ask a question before you move. Is that salary in
keeping with what all the other Assistants are getting? I mean..I'm only interested
in like people..do you know what I mean?
Mr. Ongie: Well, I guess it's in keeping with it, she is completing her first year
Father Gibson so I would assume that that would be satisfactory...a satisfactory
adjustment at this time.
Rev. Gibson: That answers my question.
Mr. Plummer: I move that that adjustment be made,
Mrs. Gordon: Second.
Mayor Ferre: Since this is a matter just of intent we can have a voice call. All
those in favor say Aye (RESPONSE), all those opposed (SILENCE), it's unanimous.
Mr. Plummer: Is there anything other, Mr. Ongie, about your Department that we
should know about.
Mr. Ongie: No, Sir.
Mr, Plummer: No problems?
Mr, Ongie: No Sir,
20
Mfx Gtaasie: Just as guidance for us, Mr. Mayor, on this when would you like
tiS to make it effective. I assume that most of them are going to become eta,
fective some time after the budget is adopted, you know, depending on...
Mayor Ferre: Like everybody else.
Mr. Grassie: That could be different than October 1.
Mayor Ferre: Well, everybody has got to be treated the same way, we can't start
distinguishing one Department from the other, in my opinion everybody is it one
boat, this is the City of Miami and we are all in one boat.
Mr. Grassie: I just needed some guidance on that.
Mrs. Gordon: Well, let's talk a little bit more about that because, you know,
there is a lag in the General Employees in their pay raises, they have not received
them and that is a bargaining holdup so that, if in fact, this position is held up
in accord with that it could very likely not go into effect for some while, apparent-
ly, and that's not your intention.
Mr. Plummer: That is a negotiated Rose.
Mrs. Gordon: That is not your intention.
Mr. Plummer: This lady, or excuse me, let me take it out of personality, this
position is not negotiable. That is the direct responsibility of the Commission
as is his.
Mrs. Gordon: Right, so therefore this should start at the new funding year which
is October 1st.
Mr. Plummer: That's what I said, October 1.
Mrs. Gordon: Let's make it clear.
Mayor Ferre: That's what I did but...
Mrs. Gordon: No, you didn't because you didn't get Mr. Grassie to get the message
that way did you?
Mr. Plummer: Well, to me this is non-negotiable because this is under the direct
responsibility of the Commission and the maker of the motion says that the intent
was October 1, 1977.
Mrs. Gordon: And that's what the seconder agrees.
Rev. Gibson: All right, Mr. Mayor.
Mayor Ferre: All right, anything else? Any other questions of the City Clerk?
10, PRESE' fATIO►'1 OF LAB( DEPART1ENT BUDGET PROPOSAL.
Mayor Ferre: Well, now we are in the Legal Department and this should be the last
one now.
Mr. Knox: Mr. Mayor, members of the Commission, our budget estimate reflects an
increase over last year's budget of approximately $6,000 to $8,000. You'll also
note that $58,000 of that is attributable to the transfer with respect to workmen's
compensation and other fringe benefits so that the net increase in the budget of
the City Attorney's officeor the Law Department is approximately $10,000.
Mr. Plummer: Is there anything you ask for that you felt was essential to the
operation of your Department that was denied?
Mr. Knox: No, Sir, not at this point.
Mr. Plummer: Was it in any way given consideration that you oou].d cut the expenses
of your Department further?
Mr. Knox: No, Sir, not at this point.
Rev. Gibson: Mr. Mayor, members of the Commission, I Want to raise a question
21
and I raise it because - saw it in action and being a c. -gyman and working for the
Bishop,...you know, under Bishop this would never happen. I'm concerned with some
of these contractual agreements and services. Let me tell you something, listen
to me. You may not do a thing about it but it's coming back to haunt you, okay?
When we were dealing with the Sanitation workers, Mr. Mielke who was our negotia-
tor, who went before the State people..a very interesting thing to me was that you
and I who are the Commissioners who set the policy did not have any control over
the attorney who represented us. I want you to hear that, I want the Commission
to hear that. We did not have any control over that attorney. The fact remains
that that attorney was there representing the City of Miami contrary to the mandate
of the City. To me that says something, and I hope this Commission...before you
pass this budget, will raise some questions, you know, if you could go to repre-
sent us before the State Committee opposite to what we asked to be done
that if we hire a firm and instruct a firm to file Quick Taking, --I want you to
hear this Rose-- ..to file Quick Taking for the FEC property and he thinks to the
contrary, he'll do it also. And I am worried stiff that is an everlasting example
to me of not having control over your business. I want to know before I vote for
this where that salary is, and where that attorney is and where the chief nego-
tiator is for the City and I want them to get before that microphone and answer
to us, answer for me...I ain't got nothing to do with the rest of you. Because
I saw it, I was there, they didn't think I was going to show up, they didn't know
I was coming. That's right,..and let me tell you something, that's only one
incident, but to be forewarned is to be forearmed and if you stop now you may not
have to stop it later.
Mr. Plummer: Why don't you invite them here Monday night? Well, Mr. Grassie,
he's asked question I think he's got to have an answer, when are they going to be
here.
Mr. Grassie: Was that the question, Commissioner?..when they are going to be
here?
Rev. Gibson: Mr. Grassie: I want to see those men and I want to make sure that
Mr. Mielke and that special attorney or that firm that you have get the message
that they work for us and they are to carry out the mandates of this Commission
and if they can't give us that guarantee we need to cut them out of this budget
man, ..you have my unequivocable commitment that I am ready to vote them out,
that's right, I won't play at that.
Mr. Grassie: Well, barring their being out of town or something of that type, yes,
why don't we have them here Monday?
Rev. Gibson: All right, fine, look, when Monday comes you know you've got Saturday
and Sunday to notify them. And I ain't going to vote until I've talked with them
and see them.
Mayor Ferre: Anything else?
Mrs. Gordon: No, I don't have any specific one. I wanted a clarification how-
ever for the Clerk's Department, that's what I've been trying to find out. Since
our...J.L., will you listen, please?, since this Commission sets the salaries
for the Clerk and his Assistant. We have just acted on the Assistant's salary
increase but not on the Clerk's and it's my understanding that his adjustment is
not automatic when the other...
Mayor Ferre: It's not automatic?
Mr. Plummer: Sure it's automatic.
Mrs. Gordon: No, because he is an employee that is directly...
Mr. Ongie: My salary is set directly by the Commission, only by the Commission.
Mrs. Gordon: Well, he has to make a motion that way to clarify it.
Mayor Ferre: No, no, no, I think the way to put it, J.J., is whatever everybody
else gets...and we haven't decided that yet.
Mr. Plummer: Oh, okay, fine.
Mrs. Gordon: But that he be included and not left out because we haven't expressed
ourselves.
Mayor Ferre: Absolutely,
22
Mt Plummer: Well, wait a minute, let me make one other point cleat so that there
is no misunderstanding, the motion which I made for the Assistant was a motion
of inequity as to position and compensation for work.
Rev. Gibson: Right.
Mrs. Gordon: Adjustment.
Mr. Plummer: ...now, it is my intent that that position which she is holding at
the present time will be a position of $19,500. When this thing, like everyone
else will receive a cost of living, she will also receive it. Did you understated
that, Mr. Grassie?
Mr. Grassie: I didn't understand otherwise, yes.
Mr. Plummer: Oh, okay.
Mrs. Gordon: Okay, just so that it's all clear. Are we through?
Mayor Ferre: Is there anything else? See you tomorrow, at what time...?
There being no further business to come before the City Commission, the meeting
was adjourned at 5:05 O'Clock P.M.
ATTEST: Ralph G. Ongie
City Clerk
Natty Hirai
Assistant City Clerk
Maurice A. Ferre
MAYOR