LTC 560-2017 Update Regarding Recovery of City FundsMIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC #
560-2017
LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of the City Commissin
FROM: Jimmy L. Morales, City Manager
DATE: November 21, 2017
SUBJECT: Update regarding recovery of City furs
The purpose of this Letter to Commission is to provide an update regarding recovery of
City funds as outlined in Item R7H at the Commission meeting on October 31, 2017.
On October 31, the City Commission approved a settlement agreement with SunTrust,
which stipulated that within sixty days after the execution of the agreement, the City
would receive a minimum amount of $536,258. I am pleased to say that these funds
have been received very early in the sixty day period. The agreement also established a
framework for the City to recover additional earnings each month during the renewal
term of 1wo years, with the monthly earnings depending on the volume of transactions
and the average monthly balance in the accounts.
A proposed settlement with STR Marketplace, LLC (STR), was also approved on
October 31, whereby STR agreed to make a lump sum payment to the City in the
amount of $900,000 to settle all claims among the parties with respect to the 2016 theft
of funds. This lump sum payment has also been received.
These two settlements resulted in the City having recovered a total of $3,499,344. It is
important to note that this recovery has been achieved without protracted and expensive
litigation. Full recovery of the remaining outstanding amount of $187,368 should occur
by the end of the first quarter of 2018, if not sooner, from interest earnings in the City's
SunTrust accounts.
Theft of City funds
Recovery prior to October 31st
SunTrust settlement
STR settlement
Remaining outstanding funds
($3,686,712)
$2,063,086
$536,258
$900, 000
$187,368