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HomeMy WebLinkAboutCC 1976-01-22 Minutes PartialJAN 2 2 1916 20, MOTION THANKING PE ONNEL WHO WORKED SUPER Mr. Plummer: Mr. Mayor, may I b throwing bouquets to people in th do it and I would leave it to the I was about the only one that paid enjoy it. It was for a reason but people, the people of public recreat ment in particular, the Fire Departure did a tremendous job and made this cit mission in some way should let the peo to let them know that we appreciate the good. Now Mr. Andrews, you handle it ho Rev. Gibson: Mr. Mayor, I want to seco A man who is not connected with the ci where because he didn't want to be i if not the best kept, by way he mea record ought to reflect that and a was asking about the Poly Turf b Mayor Ferre: Well thank you, you so does Joe Robbi. ing up and just for one City of Miami I don' iscretion of the M 20 to go to Supe travels throu n facilitie t, everybo loo) g e of w olved, clean of you o iness and he ther, and I thi L nrt sernnl, while we're know how we would appropriately ager. But Mr. Mayor, I think Bowl but didn't get to sit and the stadium, Mr. Mayor, our the people of the Police Depart - that was associated with Super Bowl X d. Mr. Mayor, I think that this com- is city who really gave that extra n'th job that they did making this city loo4 r you want. t because I went out to look at the grounds... is from another city, and don't ask me said that this stadium is one of the best tadium in the country. And I thought the ht to know that and he was, because I ent out of his way to make that comment. we all do know it and I want to tell The following motion was i roduced by Commissioner its adoption. A MOTION C STAFF WHO MOTION NO. 76-84 Plummer, who moved NDING ALL MEMBERS OF THE CITY 0 MIAMI ADMINISTRATIVE ARTICIPATED IN THE SUCCESSFUL SUPER OWL X. Upon being s onded by Commissioner Gibson, the motion as passed and adopted by t following vote - AYES: Commissioner Manolo Reboso Commissioner J. L. Plummer, Jr. Commissioner (Rev.) Theodore Gibson Vice -Mayor Rose Gordon Mayor Maurice A. Ferre NOES: 21, GROUP INSURANCE CHANGE IN PREMIUM COST BY EQUITABLE APPOINT COMMITTEE TO STUDY ETC , N 2 21976 Mr. Andrews: Mr. Mayor and members of the commission, the City of Miami's Health Insurance Program is carried through the Equitable Life Insurance Society of the United States. The policy annually is approximately $3,000,000 shared proportion- ately equally by the city employees and the City of Miami. We have been notified through equitable life that because of our coverage and events that are occuring as a result of economic increases that over the next year our insurance will go up $2,000,000. Mr. Plummer: Up to? Mr. Andrews: Up, will increase by $2,000,000. I've had meetings with the employee committee that has been appointed to assist the City Manager in developing specificat- ions in carrying out the insurance program. I listened to their advices, make recom- mendations to the commission. We have discussed this very carefully and I can find no way I can recommend to the City Commission that we can avoid becoming involved in an increase in premium for the balance of this physical year. Now rather than accept this policy increase for a twelve month period which would begin on February 1st, it will be my recommendation that we consider extending the increase until the end of this physical year which would be agreeable to Equitable Life. There would be some lesser prorated adjustment because they have figured in their calculations for the increase, the inflationary spiral that we still continue in. So this will mean a sub- stantial increase to the city and to the employees and Mr. Lutz who is the chairman of the employee committee that advises the City Manager is here to assist in this dis- cussion and I would, Mr. Mayor, ask you to recognize him so that he might... Mayor Ferre: (INAUDIBLE) Mr. Andrews: Mr. Mayor and members of the commission, Gene Naples is here who is the second spokesman in this matter in reference to the insurance and I think you should hear from them before we give you a specific recommendation. 39 JAN 2 21976 Mr. Ed Lutz: Mr. Mayor and members of the commission, as the Manager pointed out there is a substantial increase and time at the moment is the essence. Mayor Ferre: We need your name and address for the record. Mr. Lutz: Ed Lutz, 3055 S.W. 1 Avenue, Miami. And as he stated I am chairman of the Employees Insurance Committee which represents all the labor organizations within the city. We have been following this insurance program since its essence knowing the claims experience under it ever since it began. The City Manager has been aware of the claims experience from about the 4th month on. The company has made everyone aware that there was no doubt going to be an increase in premium due to no more than utilization of the policy. It isn't that this company came in and under bid to get this bid, they were close with other comparable companies when they come in. What it really boiled down to, when we had Metropolitan as you know for a number of years claims experience personally speaking was sad, very sad. People would not turn in small claims because it was hard to get them back and time consuming in getting them back. So when equitable and other companies come in and bid they bid on past exper- ience and they come in and bid accordingly. So now when Equitable come in here we got excellent claim service. We get our claims benefits back within the same week, they check out the claims but people now since they get good claims service, and it is a simplified matter, they're turning all their claims that they're entitled to. So in essence the program shows that it is being utilized is all it boils down to. We concur with the City Manager, the committee, that we do believe the determination of policy possibly should be at the end of the physical year, September 30th. This gives then some negotiations between the city and the bargaining unit to go with. Mr. Plummer: Well you know that's all well and good but if we continue it on for approximately another 9 months where are you going to get the money? Mr. Andrews: Well, that becomes a problem but I want to point out that the problem is in my judgement divided into two parts because the insurance is divided into two parts, one that deals with the personal health coverage that is provided to city employees and then the dependent coverage which the employees elect themselves to take advantage of. And the greater portion of this increase occurs in that dependent coverage. Prorating it on the basis of where the funds are required to cover the policy as described to us by Equitable there would be about $350,000 expense to the city for the balance of the policy and about $1,400,000 for the employees. Mr. Plummer: Yes, but Paul, do you realize, I'm sure you realize what we're doing per cost per employee? Now you're jumping this from a $3,000,000 figure to a $5,000,000 figure for ... Mr. Andrews: For a total policy. Mr. Plummer: Paul, there is no way we can stand it. Where are you going to get the money to take this kind of an increase if in fact what you're telling me is true that your budget was tight last year? You're talking about then roughly to increase it for an additional 9 months you're talking about in excess of a million dollars. Is that correct? Mr. Lutz: It's almost a million eight total. Let me clarify one thing also. Since the beginning of this program it isn't really the inflation factor that's caused it... Well, we can't be without insurance. I believe there is a moral obligation on the city's part as well as a legal obligation and now the thing is also when the budget was made up this year, last year when we first started with Equitable we had somewhere a little over 3000 employees. Do you realize now we've got almost 4000 employees which the city is supposed to be picking up 80%. This was not budgeted additional I do not believe. Mr. Plummer: Thirty-six hundred and seventy-one at budget time. Mr. Lutz: That would not cover the additional... Mr. Plummer: Any additional above the 3671. That's not the point. I accepted what the Manager told me and told the employees when he was talking about the employees wanting a raise that he didn't have the money. Now if we're talking about an addit- ional 1.8 million dollars just to keep what we've got I want to know where he's suddenly finding a million point eight hundred thousand dollars. Mr. Andrews: I'm trying to tell you, Mr. Mayor and members of the commission. First of all it's $1,351,000 to the end of this fiscal year. Mr. Plummer: An additional. JAN 221976 40 Mr. Andrews: Additional. Of that the city's requirement based on my review of this matter. Mr. Plummer: Is 80-20. Mr. Andrews: Is $317,000 and $1,035,000 would be the requirement of the employees because the major portion of that falls in the dependent coverage. Mr. Plummer: All right, let's put something else on the table and I'm glad Kenny Harrison is here so he don't have to hear it later. Wasn't group insurance a part of negotiations? Mr. Andrews: Yes. Mr. Plummer: Ok, but I'm asking the question. Lt. Ken Harrison: It was. Mr. Plummer: Ok, that's all I'm asking. Mr. Lutz: In the essence of $350,000 and if that $350,000 did not meet the increased moneys needed it's supposed to go back for re -negotiations. Mr. Plummer: Ok, and it obviously did not meet it. Mr. Lutz: Well, it did for 74-75, we're talking about 76. Mr. Plummer: Hey, I'm not arguing, we've got to cover our people but what I'm saying is this: you know there were people here who contended the very thing that you brought up that the company that we now have bidded low knowing that they would come back in at a later time asking for a higher premium. That was said here in this commission chambers. Now all I'm saying to you is we don't supposedly have the money if I accept what he tells me is true. Alright, now I'm going back to my budget book, by the way because I think the figures he's just given me are wrong but I'll accept them. Now all I'm saying to you, when you're spending that much of the taxpayer's money I'm seriously questioning should we go back to another bid. Mr. Lutz: Time doesn't allow it. Mr. Andrews: That's what we're trying to tell you. The employee organizations are willing to, and has committed that we'll go through an entire review process and look at att.ernatives more than just the way we're handling insurance, even the self-insur- ance program but we're at a point in which we must do something now. Insurance is a complicated matter, you just don't resolve it in 60 days or so. Mr. Plummer: Obviously Paul, you know that works two ways. Obviously this sudden crisis has come about today because none of us I don't think any of us five sitting up here knew about it but here you're asking us for a decision today. Mr. Andrews: Well, let me compound your problem in that the City of Miami has through the state been noticed as to the fact that we are not going to receive from the state the revenues that they originally anticipated turning over to the city from State Revenue Sharing Funds. We will have a short fall of about $1,100,000. Now I am in the process right now, I'm not ready to report to the commission today indicating what actions we're going to have to take in order to make sure that we do not end up the year with a deficit in this particular budget. That may mean very well not hiring at the same rate that we're hiring and taking other actions that will reduce our expenditures commensurate with our revenues. Mr. Plummer: Paul, that's well and good but you knew that the first of January approx- imately. Now it is now the end of January and this commission has not been apprised of that. All I'm saying to you is the same thing in a broad philosophy that I told you the other day. I've still got the Cadillac out there to take you to the poor house. Now you know it's not getting funny. Everything around here is skyrocketing. I'm not speaking, Gene, just to insurance. Everything is skyrocketing, people are being hired hand over foot which is good, it makes this city look good that we're hiring but we're faced with declining revenues. This city is now 4 months into its budget. There has not been one proposal before this commission for an increase in fees. There has not been one proposal before this commission since budget time, there's not been one thing in here for generating new revenue. Now something has got to give and it isn't going to be the taxpayer. Mr. Andrews: Well fees are not going to generate the kind of revenues that we're talking about. JAN 2 2197b 41 tow Mr. Plummer: New sources of revenue, fees being increased. I told you about the guy from the boat dock down here who was paying $97.00 before the city took over, he's now paying $25.00. i haven't heard anything to rectify that situation. All I'm saying to you is if we're going to make budget this year we'd better start doing some real serious thinking and I'm not talking about increasing, we've got to do some decreasing and tighten this belt. Mr. Andrews: And that's going to have to occur in Police, Fire and Sanitation, not only in certain portions of the organization. Mr. Plummer: Paul, we all understand. Only the federal government has the right to spend more than it has. Mayor Ferre: All right, we've been on this now for 20 minutes. What is the will of the commission? We've talked this one out. Mr. Plummer: Are we under a gun today? Mr. Andrews: Yes, we are. Mr. Plummer: We can't wait two weeks? I'd like to know some more information. I just saw this for the first time. Mr. Andrews: The only way that we could wait another two weeks is to at least provide the increase for another month or two. Mr. Plummer: Well, I'll tell you what I'd like to do, and I don't need any more meet- ings or tie up any more of my time but damned if I won't serve on a committee to investi- gate this matter further for the commission. I'll go along with allocating the money if you can find it to grant the increase for one month. But I want to know more about it. Mayor Ferre: Mr. Andrews, have you studied this matter thoroughly? Mr. Andrews: From the standpoint of an increase but I want to indicate that I'm not an expert in the area of insurance itself and that's a complicated area as you well know. Mr. Plummer: Mr. Andrews, I'm not an expert but let me tell you something. When you're spending $5,000,000 or $2,000,000 I can find the experts and that's what I want to do. Mr. Andrews: But you're not spending $5,000,000 of taxpayers' funds. The majority of this is employees' funds... Mr. Gene Naples: Mr. Mayor, maybe I can shed just a little bit of light for Mr. Plummer's benefit. You know I find myself in an unusual position here but I'd like to tell you that I'd like to attempt what the Manager has just said. This has been a joint venture. When this insurance committee was formed we drew up some specs that were a lot better than what we had. We went all through that. But Mr. Plummer, it appears I'm sure to people who don't understand how this insurance program works that the employees con- tribute considerably to this program, more than the city does for that matter. Mr. Plummer: Only on dependents. Mr. Naples: MOre on dependents but I'm talking about the overall program. We pay more into it than the city does. Mr. Plummer: What is the percentage, Paul? Mr. Andrews: 55-45. Mr. Naples: Now we're getting in the same position with this apparently, you some people we've had a lot of editorials and one thing or another on our Pension System and a lot of people are under the impression we're in a non-contributory system. The city employees, we pay B1% of payroll into that system and we pay 55% of the city's insurance program. That's our responsibility, we accept that and that's where a lot of this money is going to come from. Mr. Plummer: Gene, I'm not disagreeing with you, I'm just saying that we have set up "X" number of dollars to pay for insurance as we have "X" number of dollars to pay for anything. Now we find an increased premium of 64.9% and I don't know where the money is coming from, I really don't. And I want to know suddenly where they're finding $350,000. JAN 2 21976 Mayor Ferre: The chair is going to rule on this with the concurrence of the commission the chair is going to appoint a committee made up of J. L. Plummer and Commissioner Reboso and someone from the Manager's staff designated by the City Manager to report back to this commission on the very next opportunity, the loth of February or sooner if you have it ready. Mr. Plummer: I'll have a report ready hopefully before then... I'm going to make a motion right now to give the increased funding for a 30 day period from right now. Mr. Lutz: We're going to have to ask whether Equitable would accept under that condit- ion too. Mr. Naples: We have an insurance committee made up of all the employees groups... Mayor Ferre: Well would the Insurance Committee appoint one member of their committee to serve on this committee so that we will then will have a four member committee chaired by Commissioner Plummer to report back to the commission his findings. Mr. Andrews: Now I want you to listen carefully to what Mr. Lutz is saying and that is that we'll have to go back to Equitable Life to insure that the one month extension is available to us until we can come to a decision about... Mayor Ferre: Is that available? Mr. Plummer: Eddie, can you speak for the company? INAUDIBLE Mr. Plummer: Ok, well find out. I'm amazed a $2,000,000 premium is at stake and noone is here representing the company. Mayor Ferre: Plummer, this has gone half an hour now, we're not going to solve it now so.... Gibson makes a motion and Rose Gordon seconds that a committee be appointed chaired by Plummer, also constituted by Commissioner Reboso who will serve on a committee and Paul Andrews' designee and a designee of the employee groups to find out about this insurance premium. The following motion was introduced by Commissioner Gibson, who moved its adoption. MOTION NO. 76-85 A MOTION OF INTENT TO CREATE A COMMITTEE CHAIRED BY COMMISSIONER J. L. PLUMMER AND COMPOSED OF COMMISSIONER REBOSO, A REPRESENTAT- IVE OF THE CITY MANAGER'S OFFICE AND A REPRESENTATIVE OF THE CITY EMPLOYEES INSURANCE COMMITTEE TO INVESTIGATE AND REPORT BACK TO THE COMMISSION ON FEBRUARY 10TH THE MATTER OF THE INCREASED PREM- IUMS TO BE PAID TO EQUITABLE LIFE ASSURANCE SOCIETY. Upon being seconded by Commissioner Gordon, the motion was passed and adopted by the following vote - AYES: Commissioner Manolo Reboso Commissioner J. L. Plummer, Jr. Commissioner (Rev.) Theodore Gibson Vice -Mayor Rose Gordon Mayor Maurice A. Ferre NOES: None. JAN 2 21976 43 vio JAIN LG IiID WAIVE RENTAL FEES MOORE PARK - BOYS CLUB OF MIAMI e following motion was introduced by Commissioner Gordon, who move adnntinn. MOTION NO. 76-86 A MOTION OF INTENT TO WAIVE CERTAIN FEES AT MOORE PA BOYS' COUB OF MIAMI, INC. Upon and adopted AYES: eing seconded by Commissioner Reboso, the motion by the following vote - Commissioner Manolo Reboso Commissioner J. L. Plummer, Jr. Commissioner (Rev.) Theodore Gib Vice -Mayor Rose Gordon Mayor Maurice A. Ferre NOES: None. 23, ;!AIVE FEES FOR PROCESSING APPL CATION Mr. Martin Flesh: Good Flesh. I represent the ion asking the scouts to on the city part of Lumen access to the island. W imately $450 which ordin application. We PROPOSED PIER afternoon, Mr. Mayo oy Scouts. Mr. Ma et a Bicentennial u Island. We have e requesting a ari would be re Mr. Bob Davis: One of the fee think the rest of the fees are is for nvolv • n FOR THE as passed JAN 2 2 1976 ON LUMMUS ISLAND BOY SCOUTS r d City Commissioners, my name is Martin yo , the City Commission adopted a resolut- amping Experience going on Lummus Island, a proposal to construct a pier to obtain aiver of the fees in the amount of approx- ired by the city for processing of the conditional -use hearing which is $300. in the Public Works Department. Rev. Gibson: Mr. Andrews, can't h be done without cost to these people? Mr. Davis: If the commission waiv the fee. Mr. Plummer: Mr. Mayor, I have o a a question and I'm sorry. Mr. Manager, this is really on city property, cor ect? Mr. Andrews: Yes it is. Mr. Plummer: Now I was aske a question t other day. You know this application is in the name of the Boy Scou s and I question that they can do it on our property even though I'm all in favor of it but other peopl have requested of my office is this island going to be avail.. e to the public for amping. Mrs. Gordon: I believe here is a lease that's •-en signed with the scouts for them to develop the land an to utilize it for a campgr•und for scouting. They're putting in the money and the i vestment of doing that work Mr. Flesh: We also use of the facility. • opose to invite the inner city • Mr. Plummer: Ok, .s long as that's stipulated. I just the public, that' all. uth, Mr. Commissioner, to make 't think you can exclude The following mo ion was introduced by Commissioner Gibson, o moved its adoption. MOTION NO. 76-87 A M ION OF INTENT TO WAIVE THE FEES FOR PROCESSING APPL ATIONS FO THE PIER PROPOSED TO LEAD TO LUMMUS ISLAND FOR USE BY HE BOY SC 'UTS. Upon b ing seconded by Commissioner Gordon, the motion was passed and adopte• by the following vote - AYES: Commissioner Manolo Reboso Commissioner J. L. Plummer, Jr. Commissioner (Rev.) Theodore Gibson Vice -Mayor Rose Gordon Mayor Maurice A. Ferre NOES: None. JAN 2 21976 44 JAN 2 21976 53, GROUF IISURANCE - AUTHORIZE MANAGER TO EXPeD NECESSARY FUNDS TO EQUITABLE FOR ANOTHER MONTH INCLUDING THE EMPLOYEES CONTRIBUTIONS -ETC, Mt. Plummer: Mr. Mayor, may I bring up so that we can get this firmed up. I make a motion. I have had a call from Mr. Ed Cole, a representative of Equitable Life who says that his company is agreeable to extending for a 30 day period, as long as the City funds at the new rate, so that we can have the time to look into it. I make a motion at this time that the Manager be given the latitude to expend the funds necessary to pay the current rate for a period of 30 days. Is that what you want? Mr. Andrews: Yes. Mr. Mayor, so there's no misunderstanding I think it will be wise for this Commission to also indicate that the Manager should make accommodation for the employees as far as their contribution for this one month. It would be extremely difficult to try to provide for some adjustment in which, they would pick up their portion of their requirements for a one month period and find out that the rate changes again. It's just creates confusion. And I think that we should bear this expense for the one month for the employees until we come up with appropriate Mr. Plummer: I totally agree that we pick up the increase for the employees for the 30 day period. Mayor Ferre: Ok. There's a motion by Plummer. Is there a second to that motion? Seconded by Gibson. Further discussion on the motion? Call the roll. The following motion was introduced by Commissioner Plummer who moved its adoption: MOTION NO. 76-114 A MOTION OF INTENT TO ALLOW THE CITY MANAGER TO EXPEND THE NECESSARY FUNDS TO CONTINUE FOR ANOTHER MONTH THE CITY EMPLOYEES' INSURANCE PROGRAM WITH EQUITABLE LIFE ASSURANCE SOCIETY, INCLUDING THE EMPLOYEES' CONTRIBUTIONS IN EXCESS OF THAT WHICH THEY ARE PRESENTLY MAKING. Upon being seconded by Commissioner Gibson, the motion was passed and adopted by the following vote: AYES: Commissioner Manolo Reboso Commissioner (Rev.) Theodore Gibson Commissioner J. L. Plummer, Jr. Vice -Mayor Rose Gordon Mayor Maurice A. Ferre NOES: None. 91 JAN 22197§ Mayor Ferre: Mr. : ,es, I'm ready to swear you in if you'll stand up please. (applause) I also4Npllt you to know that he's also is part Itn and part Irish, so he represents more than one minority. JAN 2 2 1976 55, COMMUNITY DEVELOPMENT ACT - PRESENTATIONS BY TARGET .AREA CHAIRPERSONS Mr. Andrews: Mr. Mayor, and members of the Commission, are we ready to proceed? Mayor Ferre: Yes. Mr. Andrews: The matter of item I21, a & b on the Commission agenda is divided into those two parts so that you could first have a work -shop session with the City Manager and staff relating to Community Development Act and then after we have hopefully answered all your questions, then have an opportunity to discuss the proposed program with the chairperson and the staff responding to their questions and hopefully coming forth with answers that will satisfy most everyone but certainly it'll be impossible to satisfy every conditon. The City of Miami, a Community Development Program consists of 5.8 million dollars worth of expend- itures for the coming Community Development year which begins in May and last of course, for an entire twelve months period. The City has divided itself into eight target areas and the eight target areas are established on the basis of the number of poor families that exists in each of those areas overcrowded units. Number of deficient housing units, enviornmental condition of the neighborhoods, such as bad streets(other lacking amenities). Community facilities served in that area of the City. The amount of opened space, these are criteria established from the Federal Government, which we took into consideration in establishing the eight target areas in the City of Miami. A target area chairperson was selected from within that area and had available community members which constituted a task force and we have been working with the chairpersons in order to explain to them rational formula of distribution of funds within the target areas and the type of projects that can be carried out and with their corporation and their assistance and their evaluation of the community assessment needs in each one of these target areas we've been able to come up with a program that we will be discussing with the City Commission. Now, the Community Development Program principally involved in providing new facilities for the various neighborhoods of the City of Miami, how- ever in fairness to request particularly, two or three target areas, there were two separate subjects that were discussed and brought up.&interest was expressed that these two additional subjects might be included in the Community Development Program. One of those subjects particularly brought out in the Wyndwood, Little Havana Area was to expend some of these monies for Social Service Programs and extension of the Social :service Programs provided through Federal Revenue Sharing General Funds, of which we expended approximately one million four hundred thousand dollars. And the chairpersons were informed that under proper conditions up to 20% of the City's total monies could be expended in this effort if a decision was made to do so by the City Commission and if other criteria established by the Federal Government could be followed. I have a recommendation that we not entertain spending money for this year in the Social Service area, but I beg the Commission that this does not mean that I'm not insensitive to the needs of the people in these various neighborhoods. The formula to be followed under the Community Development Program to provide for Social Services Programs is complex, does require after a well document- ed program is established that it be submitted to the government and to two different federal agencies for potential funding that those federal agencies have a flat reject- ion and who knows ... Before such programs could be considered through the Community Development Program. Now, what I would like to recommend to the Commission is that we work with these communities that are particularly interested in the Social Services Programs, that we assist them in developing the Social Service Programs that they want, that we assist them further in making applications to the federal government for funding and their just might be good potentiality that some funding would come along for some additional Social Service Programs, but that we not try to program the Community Development Funds for this year in such a way that its continguent on the 92 JAN 221976