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HomeMy WebLinkAboutCC 2000-05-25 Minutesi Note For The Record: At this time, the Special City Commission Meeting convened. Vice Chairman Gort: OK. You guys want to go into the special meeting now? As you all realize, the new package was put together by the Manager. Mr. Manager, would you like to explain your package? Commissioner Sanchez: Mr. Chairman? Vice Chairman Gort: Go ahead, sir. Commissioner Sanchez: Good morning, Mr. Chairman. I'm ready to discuss the package, but in the last confirmation meeting, which I was here, I failed to ask some important questions that I got back to my office after the meeting and put them together before I_ make a decisive factor in supporting this severance package, and I would like to, with your approval, legislation, the Commission, to ask the City Manager some questions. I know some people are going to realize that we're probably in the wrong meeting, but it plays an important factor in the severance package. Mr. City Manager, good morning. Mr. Carlos Gimenez (City Manager): Good morning, sir. Commissioner Sanchez: Mr. City Manager, I have like seven questions that I would like to ask you. One is, if the parking surcharge were eliminated, how would you make up the shortfall? Mr. Gimenez: That's a heck of a question. Commissioner Sanchez: Hey, nothing like starting with a bang. Mr. Gimenez: And the best answer I can give you is, I don't know how we would make it up. I can tell you that right now. I could get back with, you know, staff and analyze what it is we would do to reduce expenses and maybe come up with some other sources of revenue. So, that would be a Comprehensive Plan, reduce expenses and increase revenue, if we could. I really can't tell you how we would do it.. 3 May 25, 2000 Commissioner Sanchez: And I realize that I should have asked this question in your confirmation, although you're confirmed and you're the City Manager. The other question is, what is the latest negotiation with the Port of Miami on Watson Island? I know that you just got there and you probably haven't been briefed on it, but I would like to be informed. Mr. Gimenez: We apparently are in advanced stages of negotiations. The County is -- wants to have two facilities at Watson Island, and we've been -- the previous administration was in constant negotiation with them to see what kind of a deal could be struck there. Commissioner Sanchez: OK. And what are your feelings on filling in the FEC (Florida East Coast) slip next to American Airlines Arena? I know that has been the discussion that has been talked. I know the Mayor has expressed support of it, and I'd just like to get your input on this. Mr. Gimenez: Again, that's something that I would need to be briefed on. It would come down to a business question. In other words, does it make sense for the City to do that; how much it would cost to do it, and how much the City would expect to gain in return for doing that. Commissioner Sanchez: Would you support a strong Mayor initiative? Mr. Gimenez: That's a personal question, and how I vote at the ballot boxes is really my - - it's my prerogative to keep my vote in the ballot box secret and I intend to do that. As a professional, I'm not going to have one opinion, one-way or the other. Commissioner Sanchez: In your opinion, is the City lacking a vision? In your opinion, is the City lacking a vision? Mr. Gimenez: One of the things that I put in my package was that we would -- the elected officials and myself and representatives of the (inaudible) and have a meeting to set direction for the City. If you're telling me is that lack of vision, I believe that we need to have a concise direction for the City, and that's one of the things that I want to do as Manager. Commissioner Sanchez: Are you working with the Mayor on hiring a new Mayor's budget liaison? That was discussed two Commission meetings ago. Mr. Gimenez: The Mayor has requested of me that, if I had -- if he could have some of the resumes of the people that have applied for some of the financial positions in the City, and I certainly will allow him to do that, and look through those names to see if he could find somebody for that position. 4 May 25, 2000 Commissioner Sanchez: How much of an increase or decrease will we see in the FY 2001 budget versus last year? Mr. Gimenez: Those -- we haven't -- I've got to speak to Bertha Henry on that issue. She's got better number on it than I do. We were actually going to work on this over the weekend to take a look at what some of the priorities would be. I really can't tell you what -- you know, what the increase or decrease would be at this point. Commissioner Sanchez: But is it our goal to decrease the budget? Mr. Gimenez: My goal, sir, is to give you a budget, which has in it the programs and the aspects that are needed to run this City. I can't tell you right now whether that going to be an increase or a decrease, but certainly during my confirmation meeting, my goal is to, you know, eventually lower the millage rate. I'm not sure I can do that this year. Like I said, it would be premature for me to commit to something like that. Commissioner Sanchez: Mr. City Manager, tell us why severance package should be a part of the discussion and whether or not you accept the job as City Manager. Mr. Gimenez: Severance package -- Commissioner Sanchez: Or package. Mr. Gimenez: Oh, the package. I need a -- I've worked here for 25 years. I've invested a lot of time and efforts into the City, and I had a certain goal in mind when I would retire, which would give me financial independence that I require to do this job, and that's why it's important -- I need to invest a lot of time in the City and I feel that I should get a -- I should be able to realize my goals. Vice Chairman Gort: Commissioner Sanchez, may I add a little bit to that, sir? Commissioner Sanchez: Yes, sir. Vice Chairman Gort: Could you explain what were your plans for retirement and what was the benefits you received and what would happen if you were to take a job and you were fired, what would you lose? Commissioner Sanchez: Just for the record, that's exactly my question. Mr. Gimenez: My plans were to continue as Fire Chief until October I of the year 2001, and then I would drop. I would take advantage of the Deferred Retirement Option Program that is given to City firefighters and the police officers. It's very similar to the DROP (Deferred Retirement Option Plan) program that's given to all Dade County employees and a multitude of cities around the State. At that point, for the purposes of the retirement system, I would have been retired. My retirement benefits would go into 5 May 25, 2000 what's called a Deferred Retirement Option Account, and I will continue to work for three years. At the end of three years, I will terminate my employment (inaudible) with the City and then I would get (inaudible) receipt of my DROP (Deferred Retirement Option Plan) account, and continue to receive any pension benefits for the rest of my life. Commissioner Sanchez: So, you -- you would have accumulated the eighteen thousand dollars ($18,000) or the 15 percent that would have gone toward your retirement if you would have stayed there three years as Chief of Fire, correct? Mr. Gimenez: I would have accumulated -- Commissioner Sanchez: I mean, accumulated your three years. Mr. Gimenez: I would have retired benefit and also will have accumulated a, you know, a substantial amount of money in my DROP (Deferred Retirement Option Plan) account. Commissioner Sanchez: One of the concerns that I've always had -- and then we'll get to the numbers because I did put some number together -- is that we're expecting an election, November the 1st, year 2001, and it is tradition in ways. When the President comes in, the Cabinet change, and he brings his own people. Possibly, if there's an election, and the Mayor, Joe Carollo, who will probably run again, maybe wins or loses, there is a strong -- the new mayor that comes in will probably bring in a new City Manager. That's -- we all agree on that issue. Now, looking at your severance -- well, it's not -- well, I think it's a severance. I don't care how you -- if it walks like a duck and quacks like a duck, it's a duck. It's a severance pay. Now, this one is a more reasonable severance pay than the run before. Looking at your salary, which would have been a hundred and twenty-two thousand. You brought it down to a hundred thousand, correct? Mr. Gimenez: That's correct. Commissioner Sanchez: Also, the reduction of salary was twenty-two thousand dollars ($22,000). Also, you gave up the 15 percent, which would have been eighteen thousand dollars ($18,000), correct? Mr. Gimenez: That's correct. Commissioner Sanchez: And that is a total of forty thousand dollars ($40,000) that you've given up so far? Mr. Gimenez: Yes, sir. Commissioner Sanchez: However, you're asking for a seventy thousand dollars ($70,000), one-year, retroactive pay will be included in this package, correct? Mr. Gimenez: Yes, sir. 6 May 25, 2000 Commissioner Sanchez: Now, is Bertha Henry here? Bertha? Mr. Gimenez: Yes, one year retroactive pay as Fire Chief. Commissioner Sanchez: Bertha, this money would go towards your pension, Mr. City Manager, correct? Mr. Gimenez: Yes, sir. Commissioner Sanchez: Being seventy thousand dollars ($70,000) put into your pension plan would clearly kick up your pension. How much -- Gwendolyn, how much would this cost, in the long run -- and I realize -- I know that the pension works with the stock market, which could be doing very well and doing very bad, and if it does very bad, the City kicks in, correct? Ms. Bertha Henry (Assistant City Manager): This is Bertha Henry, Assistant City Manager, Finance and Administration. Commissioners, the pension program is actuarially determined, so it's based on all the individuals that are in the plan and projected to be in the plan, what investments assumptions they made, mortality rates, and salary rates, and et cetera. You're right, that is, the market does well, the amount that the City contributes to the pension program is less. If the market doesn't do as well and all of the assumptions hold, then the City makes a greater contribution. But, as an individual, it's virtually impossible to determine what that impact will be based on one individual because of the way that it's determined. Commissioner Sanchez: We cannot predict the stock market and, if we could, we would all be millionaires. But one issue is, Carlos is a very young man. He's 46 years old; hell of a basketball player, good shape. Mr. Gimenez: Thank you. Commissioner Sanchez: There is a possibility that Carlos may live to be 105 years old. The City will -- Ms. Henry: We will pay him until he's 105 years old. Commissioner Sanchez: Not if he takes this job. Vice Chairman Gort: Not if you take this job. Commissioner Sanchez: However, Carlos could live to be 105 years old and the City would have to pay into the pension plan, so that's -- you know, my concern is, looking at it -- and I always say this statement up here, which is very clear, you know. We, as Commissioners -- 7 May 25, 2000 Vice Chairman Gort: Johnny, you're saying no? Commissioner Sanchez: No? Charlie, we'll get to you in a few minutes. OK. We are the -- we protect the public's assets. That's our job. Now, my concern is, if Carlos lives to be 80, 90, I want to compare in the long run how much money are we going to pay him -- what we're giving him in the pension and better off, what deal it would be because I think that looking at the numbers -- and I need to see how the pension works, and I have to really learn the pension -- I'm better off giving him a hundred and sixty some thousand dollars, the severance package that he asked the first time. Ms. Henry: The only way -- Vice Chairman Gort: Bertha, before you answer that, let me add to it. Ms. Henry: Yes. Vice Chairman Gort: When you do the comparison that he's asked you, also do the comparison if he was not to accept the job and he stay as the chief, what would be the same -- the amount, OK? Ms. Henry: I get -- Commissioner Sanchez: Willy, I understand that. If he stays the three years, it's the same thing, OK. I understand that. Vice Chairman Gort: But, I mean -- I want to make sure that the public understands every bit of it and both sides and all the different -- OK. Commissioner Sanchez: And that's what we're doing here. We're trying to -- Channel 9 and the cameras, people will understand. Vice Chairman Gort: Thank you. I just want to make sure everybody understands. Right. Commissioner Sanchez: You know. If we look back -- what security do we have that the Mayor may disagree with Carlos two weeks from now an fire him like he's done several times, OK? And we continue to be the ones up here voting on severance packages -- and I've got nothing against Carlos. I admire him for the job that he did as a City chief, fire, and I have the utmost respect for him. But you know what? In the long run, we are the elected officials that people talk -- approach you in the street and go, wait a minute. You know, we can't continue to be paying out, because history has shown it. We paid Marquez. We had to pay him some money at the end. We got away with Pedrosa because the financial Oversight Board wouldn't pay him. Donald Warshaw, whether or not we like it or not -- and that's another question I'm going to have, why haven't we paid 8 May 25, 2000 him? Because, in the long run, we're going to have to pay him the money, and if we go to court, we're going to have to pay him the money; we're going to have to pay his attorneys, and then we're going to have to pay the interest. And then we have to sit here in this Commission and look at people in the public and tell them, hey, you know what? Here we go again, another decision that we made that you're paying for. And that's -- those are the things that I want to put on the table. I think all the cards need to be put on the table when we talk about this. Why did I ask those questions before? Because they played an important factor, you know. Hey, it's the truth. If we don't give you what you want today, you're not going to accept this job. That's the bottom. That is, you're looking for one thing, and that is security for your family and guarantee. That's one thing that I've always compared the City of Miami with the private sector. In the private sector, you have no guarantee so you perform. You know what I wouldn't mind doing? I wouldn't mind giving you a hundred and twenty-two thousand dollars ($22,000) and, at the end of the year, if you're able to reduce the budget, you're able to good performance and have performance standards that help the City, I wouldn't mind throwing in, giving you a fifty, sixty, seventy thousand dollars ($70,000) bonus. Those are the concerns that I have. And these question that's I've asked are legitimate questions. They are very good questions. I would like my fellow Commissioners to continue asking questions of such a manner. Oh, I need them answered. Bertha, you need to let me know that, 20 years from now, 30 years from now, under the pension plan, you know, how much are we going to spend on his retirement because, in the long run, the City will pay for it if the stock goes bad. So, I need those numbers, please. Mr. Gimenez: Commissioner, if I live to be a 120, you pay out so much, but that means that somebody else won't live to be 60 because it's all actuarially determined, the average life span. So, -- I mean, if I live to be a 120, great, because that means that somebody else didn't live to be that long because, you know, the actuaries know what the average life span is. And it's all based on that, what the average life span is and what you're going to pay out and all that. So, I mean, it's difficult question to answer. Commissioner Sanchez: Well, Bertha -- Bertha could give you a ballpark figure of what -- what are we spending -- let's say -- Charlie, come up to the mike since you're disagreeing with me, elaborate, educate me on the issues. Go ahead. . Mr. Charlie Cox: OK. Number one is, the pensions are figured on an actuarially sound basis. It's just like the City Manager says. He could live to be a hundred and 50, but there are people out this that are going to die at 45 years old. - Both our pensions are funded and if you're funded at a hundred percent or better, there is no cost. That means every employee that's sitting here right now, that pension fund is there. It's already there, that all of us are going to draw our pensions. You all are forgetting a whole bunch of things. There was a Gates case when you all used to run the pension, OK? That's the City people that ran the pension. Commissioner Sanchez: Charlie, if I may interrupt you for a minute? Mr. Cox: We just saved -- wait a minute. We just saved -- 9 May 25, 2000 f Commissioner Sanchez: May I interrupt you? Just for a minute. Can I interrupt you for a minute? Mr. Cox: Sure. Commissioner Sanchez: I wasn't here. Mr. Cox: I understand. Commissioner Sanchez: Those are the mistake that's we're paying for today, just as many, many -- that's why the City was in the financial situation it was in, because of the stupid mistake that's were made in the past. Mr. Cox: But -- Commissioner Sanchez: And I don't want to be a part of anymore stupid mistakes. Mr. Cox: But there is a hundred million dollars ($100,000,000) that each side -- better than a hundred mill. Probably two hundred million dollars ($200,000,000) that the employees have forgave the City of what they owed these pension funds. Why? Because of their assessment. Now last -- not last year, the year before. We had a rough year at the stock market. There is no doubt. But over the last fifteen years, we've had two rough years. OK. And those funds are well funded. So, it doesn't matter if you pay him a million dollars ($1,000,000) a year, it's actually figured out where that money is going to go. That money is in the fund already. Police and Fire, I believe, have a billion dollars ($1,000,000,000) -- better than a billion dollars ($1,000,000,000) in their fund. We have six hundred and fifty million in our fund. So, whether I make fifty thousand and he makes a hundred thousand, all those numbers are figured out year in and year out. An if every employee went there and said, we're all going to get a hundred thousand dollars ($100,000) next year, then the funding may drop. The funding levels would drop, but if the market were to pick that up, you'd never see an expense the rest of your life. I mean, we had three employees in the last two months die. Well before his age even. So, guess what? We get a return -- if you're here -- let's say there are employees here that are fifteen years and all of a sudden they decide to move on, like you said, and they leave. Do you know what return they get on their money? They get a four percent return. When the funds have an average probably over the last 10 years of an 18 percent return. So, the employees don't see that benefit. In other words, it's all figured out to where the cost is not going to be burdened by the City. Yes, there are normal costs that they have to pay, but, again, there is going to be a point and time to where we reach that this City is going to pay general dollars for everybody's pension and everybody in the future. But one individual can't make or break that pension. Commissioner Sanchez: Oh, I know that. 10 May 25, 2000 Mr. Cox: Not a hundred individuals can make or break that pension. So, to say that what's this going to cost is an impossible figure. The same way if you ask him, how many money am I going to make in the DROP (Deferred Retirement Option Plan) plan? Well, let's say you have three hundred thousand dollars ($300,000) if there and you figure that you want to be aggressive with that and you return 28 percent. Then what is that worth? Or you say you want to be conservative and you return eight percent. What is that worth? These are unfair questions that nobody can answer. Is this a cost to doing business? You keep wanting to compare us to the private industry. Look at a corporation, with our budget, and see what their CEO (Chief Executive Officer) makes compared to what the City of Miami employees make and look at their stock options. Read the paper this morning. CEO just got two point one million dollars ($2,100,000) in a bonus. I mean, you can't make those comparisons. And it's not fair for any employee that sits here for y'all to sit up here -- or for you to sit up here and make those comparisons. Because if he took a job on an outside corporation, or if I took a job on an outside corporation, let me guarantee you, the bucks are going to be a lot bigger and the security is going to be a lot bigger. Vice Chairman Gort: Thank you, Charlie. Commissioner Regalado. Commissioner Regalado: Thank you, Mr. Chairman. Vice Chairman Gort: I don't think Commissioner Sanchez finished yet. Commissioner Sanchez: No. I just -- you know, every time you say private sector, you guys jump up like -- you know, it's not -- we're not compared -- we're not going to -- well, I could make the comparison. Oh, I could make the comparison. I could make any comparison -- I mean, we could make any comparison we want, all right. I'm not saying, you know, we're going to put out an RFP (Request for Proposal) or put it out. I'm just telling you, in life, in life, job security is very good. I had job security when I was with the Florida highway patrol and I loved it. When I came out into the private sector, in the private sector things were different. I had to produce. I have to go see clients. I have to keep up with clients. Because if I don't bring any money in the firm that I worked for, guess what? I don't produce; I'm gone. OK. So, all that I'm saying is, guarantee. The word guarantee. There is, in the private sector, there is no guarantee. He's looking for guarantee, and I don't blame him because he's looking out for his best interest. Mr. Cox: Commissioner. Commissioner Sanchez: All that I want to know -- hold on. All that I want to know -- and, yet, better that, you have not answered my question is, in the long run -- and you can say I can't answer it, if you don't know. My thing is, I am prepared, after making my arguments here, to give him the seventy thousand dollars ($70,000). But I want to know that, in the long run, it's not going to cost the City three hundred and fifty thousand dollars ($350,000) -- you understand what I want to do? 11 May 25, 2000 Ms. Henry: I understand what your question is. Commissioner Sanchez: Thank you. Vice Chairman Gort: Commissioner Sanchez, let me add. I think your question is very good and the reason I ask for the comparison, because that will help you in answering your questions. You have two alternatives here. He could stay as a Fire Chief and he'll be entitled to his retirement. What I want to know, when you answer his question, what would be the differences between as a Manager or as a Fire Chief, and I think that's a better answer for us to -- Ms. Henry: Once again, Bertha Henry. That is definitely a question that the Fire Chief -- City Manager is going to have to answer. I'm not privy to all of the specifics of his DROP (Deferred Retirement Option Plan) program, the benefits that he would endure under the DROP (Deferred Retirement Option Plan) program, and his service and all those other things that come into making that determination, but what I can say, generally speaking, that, as one individual, it should not -- with a -- Charlie's right, that the FIPO (Fire and Police) has in excess of a billion dollars ($1,000,000,000) in its pension fund, so one individual will definitely not impact the performance of that. So, I will venture to say that that's -- you know, the City's going to be no better off or no worse off if you provide him with this benefit. Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: Commissioner Sanchez. Wait a minute. Commissioner Sanchez has the floor. Commissioner Regalado: I -- oh. Commissioner Sanchez: I'm done. Commissioner Regalado: I think that we have before us two issues, and I'd like to address one. Since the moment that the Manager was appointed by the Mayor, there were some serious questions about severance, and I think that it showed on the confirmation hearings and it showed also that it wasn't personal. It was about business because the five of us wanted Carlos to be the Manager, but we wanted -- and that's my position, I guess. And I'm -- I guess I'm speaking probably for all the members of the Commission, but for myself. I think that what was important was to break the cycle of severance. We started this cycle when the City went into a crisis and we brought the Mayor and the Commission brought Marquez, and he wanted some assurances, and then it was the case of Garcia -Pedrosa, who also requested some assurances. He did not get it, but he did request it and we approved it. Then it was the case of Warshaw. And since we had had two very expensive mayors in the past two -- we have paid already -- will pay four hundred thousand dollar ($400,000) and had Garcia -Pedrosa sent his contract to the Oversight Board -- by the way, the Oversight Board would have approved them, because 12 May 25, 2000 the Oversight Board like Garcia -Pedrosa as a Manager. We would have end up paying six hundred thousand dollars ($600,000), and that's money that had to come out of the City because Garcia -Pedrosa didn't have a retirement plan with the City or whatever. He wasn't an employee. But we have -- we would have had to pay. So, when you ask for the severance, I think that the important issue was to break that cycle, and to show the people of Miami that we do not rubber stamp the Mayor's appointment and then just wind up being criticized because we're giving away the money of the City of Miami whenever the Mayor wishes to fire a Manager. I agree with all the questions that Commissioner Sanchez has asked you because we need to know. We need to know the bottom line about, you know, how much money we will be paying from the City residents to you, so you can have assurances that, if tomorrow the Mayor finds that you used a credit card from other reasons then we don't, you know, run into this problem. But you see, it is important to tell the people -- I think Chairman Gort said that, that regardless, if you don't want to be the Manager, you still will get your pension and you still, you know, will be the Fire Chief, as long as you want because the Fire Chief saves lives. Everybody likes the Fire Chief. So, you know, you wouldn't have problems. But it is important that the people of Miami understand that you want to be the City Manager, and that you understand that this City Commission will not give you a severance and that you have come up with some ideas that are logical. The only thing that we need to know is, you know, how much money exactly we will be using from the City funds for your retirement. It is impossible to predict Wall Street. Nobody does. I mean, we cannot even guess of what's going to happen with the stock market tomorrow or two days or two weeks or two years from now. So, it's impossible to say how much we're going to pay. But I'll tell you something. I think -- and I think that what you have done is good for the City because you have reduced your salary; you have made your numbers and -- we can work with that. But after you get your package, and after you get the security that you're asking, and the independence that you need to have, it's important that the people of Miami knows that this Manager has to work with the Mayor and the Commission, and that the City Commission has never fired a Manager since the new system of government of executive Mayor and the City Commission -- what has the City Commission done to override the Mayor's three times when he fired Managers. So, that would be up to the Mayor and the Manager to work together, but also to work with the members of the Commission. So, I am happy about the fact that we broke the cycle and let this be a message to any Manager from within the City or from outside the City, that, you know, if they want to take the job, it's for the love of the City, and not for a golden parachute scenario. So, that's one of the things that I wanted to say. And it's still wanted to know some of the answers to Commissioner Sanchez' in terms of the money. It's very difficult, I understand, but the people have to know, you know, you reduce your salary. You reduce your fifteen percent. You want this. So, at the end of the day, it would not be in tomorrow 's headlines "Gimenez gets seventy thousand dollars ($70,000) from the City Commission. " We need to do a more intelligent explanation to the people. Vice Chairman Gort: Mr. Piederman, I think you wanted to speak. Mr. Ed Piederman: Yes, Commissioner. Thank you very much. Ed Piederman, Miami association of firefighters. I just want to make a couple comments about some of the 13 May 25, 2000 concerns that Commissioner Sanchez had and I know, with his experience from the PBA and working with the FHP (Florida Highway Patrol), he has a good understanding of pensions, but I just wanted to explain, in simple terms, how the pension plan works. And the City Manager did mention about the actuary and so forth. Every year the pension plan brings in an actuary. The actuary, what he does is determines how much money is needed in that plan this year so that if the pension -- the City stopped, the City stopped today, how much money would have to be in that plan to fund the benefits forever? And they based that on several different things. They take into account mortality tables for men and for women. They take into account an assumption rate on what the history of the stock market investments have been and what they project. They seen had smoothing effects. So that, when you have deep rises and deep valleys in the stock market, there is a smoothing effect so that those huge ups and downs don't necessarily impact the funding level of the pension plan. Every year they say, "OK. This year we need "X" amount of dollars to fund benefits that have been accumulated to this day forward." Some people have -- like the City Manager has 25 years in the system. Some people have 25 days in the system. They stop and they say, OK, at this given point in time, how much money do we need to fund it? So, it's not like -- for instance, if the City Manager lives, like we all hope, a hundred an twenty years, that the City's going to have to be paying every year a hundred and some odd thousand dollars into the plan to fund -- the municipal City -- pension plan is different than, let's say, social security. Social security, today's payers are paying today's benefits. When the social security started, there was no money there. Actually, people started collecting money from the first day and people were paying. So, the money was coming if one door and out the other door. The pension plans in the City are different. The money is already there. The money is already funded. The pension plans are funded. The City is not going to have to continue to pay a hundred plus thousand dollars every year to the day that the City Manager dies to fund his pension plan. It's already funded. And the pension plan is a reward for a long history of service. It's not a guarantee. It's a guarantee because he's going to get it for -- it's a reward for the dedicated that City employees have to this City. It's different in the private sector. Private sector you don't see people 25, 30, even 40 years dedicated service, and that's the norm in City employees, and that's a positive thing. And the thing that does that is the reward -- the pension plan is the reward for long service. So, it's not like there's -- the City's going to have to pay all this money every year forever to fund his plan. His plan is already been funded. And, actually, with his contributions, because, you know, it's not like the only contributor to the pension plan. Employees forever have been paying and now we're even paying the same amount. The employees are actually paying into the plan and, you know, they are funding their own retirement. Vice Chairman Gort: Thank you, sir. I'd like to let you know the -- I was elected November '93. I didn't have anything to do with the budget in 93/94. The budget in 94/95, I requested -- I was told at that time that we needed to reduce the expenses and we did have special meetings for all the directors, and -- Carlos, I think you were a part of that group, and you were given the task of working with that group, and we were requested to reduce the budget by twenty million dollars ($20,000,000) and we reduced the budget, I believe it was thirty million dollars ($30,000,000), by talking to all the directors and coming up changes that we've made. So I'm positive that, in hearing all 14 May 25, 2000 these conversations, that you're going to be able to do that task force again and be able to reduce the budget maybe a little bit again. But let me tell you the reason why the Commission up here are asking all these questions, and I think it's important for you to understand and for the public to understand. Tomorrow the news media comes on and says the chief is going to get seventy thousand dollars ($70,000) severance pay and all that, and the whole thing is not reported because it's not logical. Then the people don't understand and then somebody correct me if I'm wrong in my statement. My understanding is, the pension plan has already, like they stated, been funded; the pension plan that he belongs to has got over a billion dollars ($1,000,000,000). When you invest that billion dollars ($1,000,000,000), that return on that billion dollars ($1,000,000,000) is pretty large. So, all the money is not City going to be paying. All that money will come out of the pension fund. (Inaudible) help this is like a cafeteria plan in the private sector. What the directors of the corporation put "X" amount of money and the employee put an equal amount of money, and this is the -- but I'm glad these questions were asked because it's very important that people and the public understand. Because let's face it, news media tomorrow is going to say, we got a severance pay. They gave him this. Because good news does not make news. There are a lot of good things happening in this town. There are a lot of good things that this City is going through. And I will never get tired of repeating this. This City has changed the whole County in thirty years completely. There is no other City in the United States that has changed in such a short time. New York, Atlanta, LA (Los Angeles), it took them over a hundred years for those changes to take place, and this City has taken place in 30 years. We could have a lot more problems. Let me tell you. Yes, we do have problems. But I think we should be proud of ourselves, and I think we're doing pretty good. Are there any other questions, any other board -- yes, sir. Commissioner Regalado: Yes. If anybody has any questions, I'll just make a motion. Vice Chairman Gort: Go ahead, sir. Commissioner Regalado: OK. Well, with the hope that the City Manager lives a hundred and twenty years, and stays as City Manager at least a hundred an twenty days, I'd like to introduce a motion to approve the package. Commissioner Winton: Second. Commissioner Sanchez: Second. Vice Chairman Gort: It's been moved and second. Commissioner Sanchez: Second. Vice Chairman Gort: Any further discussion? Being none, all in favor state by saying "aye." 15 May 25, 2000 The Commission (Collectively): "Aye." Mr. Gimenez: Thank you. Thank you very much. (Applause). The following resolution was introduced by Commissioner Regalado, who moved its adoption: RESOLUTION NO. 00-434 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT (S), RATIFYING, APPROVING AND CONFIRMING THE SALARY AND BENEFITS TO BE RECEIVED BY CITY MANAGER CARLOS A. GIMENEZ. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Commissioner Winton, the resolution was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Johnny L. Winton NAYS: None. ABSENT: Commissioner Arthur E. Teele, Jr. Vice Chairman Gort: OK. We have the item of the veto. OK. Thank you. We've got business to conduct, people. You can all celebrate later. Yes, sir. Mr. Manager. Mr. Gimenez: Couple things I'd like to say. I'm honored and I'm -- and I hope that I do, you know, a good job and that your trust in me will be fulfilled. To my board, I thank you all and also want to thank my family for the support that they've given me, my wife and my kids. My first official announcement, you know, as City Manager -- and I know that I promised to keep my grubby little fingers out of the Fire Department, but I want to announce that I'm very proud that one of our assistant chiefs, Steve Abraira has been named as the Fire Chief for the City of Dallas. (Applause) Vice Chairman Gort: Congratulations. 16 May 25, 2000 Mr. Gimenez: And I want (inaudible) our appreciations. (Applause) Vice Chairman Gort: Congratulations. This is what a lot of people don't see. We train them here and they go to other places and whatever you do here, it will make you an expert anywhere you go. Let me tell you. Commissioner Winton: And I'll tell you. You haven't worn boots before, but it's cold, cold, cold, cold in Dallas in the winter. You're going to want boots. Mr. Steve Abraira: We don't want to tell my wife that. 17 May 25, 2000