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HomeMy WebLinkAboutCC 2005-09-08 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.ci.miami.fl.us Meeting Minutes Thursday, September 8, 2005 5:05 PM FIRST BUDGET HEARING City Hall Commission Chambers City Commission Manuel A. Diaz, Mayor Joe Sanchez, Chairman Angel Gonzalez, Vice Chairman Johnny L. Winton, Commissioner District Two Tomas Regalado, Commissioner District Four Jeffery L. Allen, Commissioner District Five Joe Arriola, City Manager Jorge L. Fernandez, City Attorney Priscilla A. Thompson, City Clerk City Commission Meeting Minutes September 8, 2005 5:05 P.M. BH.1 05-00926 Office of Strategic Planning, Budgeting, and Performance CONTENTS BH - FIRST BUDGET PUBLIC HEARING TO DISCUSS FISCAL YEAR 2005-2006 TENTATIVE BUDGET BEGINNING AT 5:05 P.M. BH.1 THROUGH BH.19 FIRST BUDGET HEARING Present: Vice Chairman Gonzalez, Commissioner Winton, Chairman Sanchez, Commissioner Regalado and Commissioner Allen DISCUSSION ITEM FINAL PUBLIC HEARING TO DISCUSS THE PROPOSED MILLAGE RATE AND TENTATIVE BUDGET FOR FISCAL YEAR 2005-2006 THE PROPOSED GENERAL OPERATING MILLAGE RATE OF 8.4995 FOR THE CITY OF MIAMI FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006 IS 18.92% HIGHER THAN ROLLED -BACK RATE OF 7.1473. SPECIFIC PURPOSE FOR WHICH AD VALOREM TAX REVENUES ARE BEING INCREASED. RESPONSE: TO ELIMINATE THE ANNUAL STRUCTURAL DEFICIT MATCHING RECURRING ANNUAL EXPENSES WITH RECURRING ANNUAL REVENUES. PURPOSE: TO FUND ANNUAL MUNICIPAL SERVICES INCLUDING BUT NOT LIMITED TO POLICE, FIRE, AND SOLID WASTE. COST $ 37,555,419 100% CITY COMMISSION LISTENS AND RESPONDS TO CITIZENS' COMMENTS REGARDING THE PROPOSED MILLAGE RATE. ACTIONS BY THE CITY COMMISSION: 1.AMEND THE ADOPTED TENTATIVE BUDGET, IF NECESSARY 2.RECOMPUTE THE FINAL MILLAGE RATE, IF NECESSARY 3.ADOPT THE FINAL MILLAGE RATE 4.ADOPT THE FINAL BUDGET OR THE AMENDED FINAL BUDGET AS NECESSARY 05-00926 Millage Discussion.pdf DISCUSSED Discussion on Item BH.1 resulted in the resolution below: City of Miami Page 2 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 (BH.1) 05-01020 RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION: 1) URGING THE PROPERTY APPRAISER OF MIAMI-DADE COUNTY TO BASE VALUATION OF MULTI -FAMILY RENTAL PROPERTY AFFORDABLE TO PERSONS OF LOW OR MODERATE INCOME, PRIMARILY ON THE INCOME FROM SAID PROPERTY AS CONTEMPLATED IN SECTION 193.011 (7) OF THE FLORIDA STATUTES; 2) URGING THE LEGISLATURE OF THE STATE OF FLORIDA TO AMEND SECTION 193.011 TO REQUIRE THAT MULTI -FAMILY RENTAL PROPERTIES AFFORDABLE TO PERSONS OF LOW OR MODERATE INCOME, BE VALUED USING ONLY THE INCOME METHOD; AND 3) REQUESTING THAT THE CITY ATTORNEY DETERMINE THE FEASIBILITY OF INITIATING LEGAL ACTION WITH THE INTENT OF OBTAINING JUDICIAL REDRESS IN ORDER TO PROTECT LESSEES IN THE CITY OF MIAMI FROM INFLATED AND UNFAIR VALUATION OF THEIR LEASEHOLD. Motion by Commissioner Allen, seconded by Vice Chairman Gonzalez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Winton, Sanchez, Regalado and Allen R-05-0538 Chairman Sanchez: (INAUDIBLE) our first budget hearing. OK. I believe our first item today on the budget hearing is the discussion item; our first public hearing to discuss the proposed millage rate. Mr. Director, you're recognized for your presentation. Joe Arriola (City Manager): Budget address, sir. Chairman Sanchez: I'm sorry? Mr. Arriola: I think the Mayor has to make the budget address. Chairman Sanchez: Yes, sir. I didn't see the Mayor. Mr. Mayor, always a pleasure to have you. You're recognized for your official budget address. He's going to -- all right. Read the statement into the record. Larry Spring: Commissioners, Larry Spring, chief of Strategic Planning, Budgeting and Performance. The proposed general operating millage rate of 8.4995 for the City ofMiami for the fiscal year beginning October 1, 2005 and ending September 30, 2006 is 18.92 percent higher than the rollback rate of 7.1473; specific purpose for which, ad valorem tax revenues are being increased to eliminate the annual structural deficit matching recurring annual expenses with recurring annual revenues to fund annual municipal services, including, but not limited to, Police, Fire, and Solid Waste; cost, $37, 555, 419. Chairman Sanchez: All right. I apologize. Mr. Mayor, you're recognized for your budget address. Mayor Manuel A. Diaz: Thank you, Mr. Chairman, Commissioners, City Manager, City employees, residents of the City ofMiami. As required by our City Charter, I am here today to deliver my annual budget address that outlines our budgetary priorities for the upcoming fiscal year. All of our duties as public servants, perhaps the most important is that of being stewards of resources. This is at the core of the bond of trust that voters place in us to safeguard their pocketbooks, to make the right decisions on how government uses taxpayers' hard-earned money. We take this role as guardians of the public purse with great seriousness, and today we City ofMiami Page 3 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 present a fiscally responsible budget, one that is structurally balanced, one that preserves our common priorities, which are continuing to reduce the tax burden on our citizenry, continuing the capital improve -- investments that make future growth easier and our city more livable; preserving the future solvency of our City, and enhancing the quality of life of our citizens through the delivery of quality government services. With that in mind, let me present some of the highlights of this proposed budget. Our City's unprecedented economic expansion has allowed our tax base to grow by $5.8 billion to a total of $27.7 billion, or a 26.8 percent increase from the prior fiscal year. One of the many benefits from this continued growth is that we have been able to consistently reduce the tax burden on our citizens. Let's remember that in the past, the City took the people's money to bail itself out of bankruptcy through higher taxes, higher fees, and the highest millage rate in City history, all leading to a 43 percent increase in our poverty rate during the end of the last century. Today, we have made great strides in reversing that practice. During my first budget address, I pledged that in this administration we would give people their money back. My pledge was a half mill reduction over a five-year period that would result in a savings to our residents of $21 million. Instead, due to our unprecedented economic revitalization and greater operational and internal efficiencies, the proposed budget establishes the tax millage at 8.4995, a .217 mill reduction from the prior fiscal year. Combined with the debt service millage reduction, we have reduced the millage rate by one full mill since fiscal year 2001. This will result in a savings to our taxpayers of $54 million, and this reduction takes place one full year earlier and saves our residents almost three times the amount that all of us collectively pledged four years ago. The reduction not only protects homeowners from rising property values, but means, actually means that homeowners in the City ofMiami will see an actual reduction in their property taxes this year, but we will not end here. We must pledge to continue lowering the millage rate in the years to come. We're also not increasing any service fees; maintain our fees flat in contrast to other municipalities for those services that we should be providing anyway, and in keeping with the promise I made in this year's State of the City address, today, for the first time since its inception in 1997, we are proposing a 10 percent reduction in the fire fee, continuing with a methodical reduction so that it is no longer a permanent fixture in future budgets. These savings to our taxpayers are not at the expense of continued capital investment in our city; providing the stimulus for economic growth, while focusing on planning and development. For too long our neighborhoods were abandoned. Money that was meant to fix streets and cover potholes was used to cover budgetary gaps and to cover inefficiencies and mismanagement. I challenged this Commission to show the fiscal discipline needed to rebuild our neighborhoods. I spoke of starting a capital improvement plan at $480 million over a five-year period. Today our capital improvement plan, the first ever in City history, is making a $1 billion investment in our neighborhoods. Let me emphasize how critical this is. The most important investment any city can make is in its capital infrastructure because it is directly linked to generating expanded economic opportunities, and for the first time, we have a comprehensive plan that does just this. This is true neighborhood investments, andl want to thank this Commission for your leadership and your vision on this matter. The proposed budget, once again, is characterized by the high level of prudence and discipline that this Commission has demonstrated over the past three fiscal years. I can say that our internal finances are in order and we have the highest bond rating the City has ever enjoyed, and we are saving for a rainy day. At the beginning of my administration, I pledged an increase in our reserves to a level of $125 million over a five-year period. Today, our reserves are at over $136 million, faster and greater than what was pledged four years ago. Meeting these priorities ensures the future positive growth of our city, while our next priority ensures that those who live in our city are surrounded by all the places and things that make the city -- city living safe, pleasant, and enjoyable. Our parks, once forgotten, are today not only centers of recreation, but centers of learning, where kids can receive after -school tutoring and mentoring, and they are centers of neighborhood and family, where parents and children can enjoy plays and concerts together with their neighbors in open green areas. This proposed budget increases parks funds by over $3 million. This represents an increase to our Parks budget of over 70 percent, since the day I took office, and to maintain the lowest crime levels since the 1970s in the City ofMiami, we're putting an additional 34 police officers on the street to fortify our crime reduction efforts. City ofMiami Page 4 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 We have also not forgotten to help the most vulnerable among us, and so we have added 700,000 for the access initiative that was announced last week, our poverty reduction initiative, bringing the total commitment to fight poverty in our city to approximately $2 million, and finally, because growth should not occur without planning, we continue to fund master planning efforts, including Miami 21. Our government is running more efficiently and responding to our citizens' needs, but we need to keep making it better; streamlining our operations, continually making them more responsive to those whom we serve. That is why we are committing $7 million to various strategic initiatives, including the launch of our first ever enterprise resource planning. iMiAMi will function as the backbone of the entire organization, giving our employees the ability to complete their duties quicker and better serve our residents. I am proud of our City staff for embracing this process, and we have already seen from the awards garnered by our Purchasing, Finance, Risk Management, and other departments that we have restored the sense of pride and public duty to our City employees. Those of us that have chosen public service need to always remember what that means; why we are here and who it is that we are here to serve. When your salary comes from the public pocketbook, more is expected of you, but let me state that no business, public or private, can guarantee its long-term financial health when its personnel costs continue to exceed over 70 percent of its recurring revenues. Our City continues to pay large amounts in contributions to cover losses in pension fund investments that are not our fault. Let me emphasize that the City has not control and is not at fault for pension fund investments. The pension fund managers are free to take whatever risks knowing that the City has an open checkbook to cover these losses; $34 million last year, $40 million this year. In fact, were it not for having to cover these losses, we could have reduced our millage rate to the citizens ofMiami by an additional two to three mills today. Chairman Sanchez: Yeah. Mayor Diaz: We could have saved our taxpayers almost $100 million in one fell swoop. Instead, we are all paying the price for those who, in the past, mortgaged the future of our city, and what is worse is that this mortgage is being paid on the back of our taxpayers. We have been blessed by unprecedented growth, but we cannot, nor should we, continue to expect double-digit increases in our tax base, and there will be a limit to what can be cut without affecting the delivery of services to our residents. Today we have a choice. We can continue to use the people's money to feed the appetite of the bureaucratic beast with higher personnel and higher pension costs, or we can remember why we are public servants, why we are here in the first place, and put the interest of those people first. I want to thank you for your time and urge your adoption of the budget. Thank you. Chairman Sanchez: Thankyou, Mr. Mayor. Thankyou. Also want to take the opportunity to recognize a dear friend, State Representative Fredericka Wilson, who is here with her lovely hat. State Representative Fredericka Wilson, always a pleasure to have you here. Applause Chairman Sanchez: All right. As we continue on, we go to BH -- Budget Hearing 2, which is an ordinance on first reading. Mr. Mayor. Mr. Spring: No, no. Presentation. Chairman Sanchez: Oh, you got to do a presentation first? I thought you did the presentation already --I mean, the opening. Mr. Spring: No. Chairman Sanchez: So, that's your -- so, we're on BH. I then? City ofMiami Page 5 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Spring: Still. Chairman Sanchez: All right. BH.1, you're recognized. Mr. Spring: Thank you, Mr. Mayor, Commissioners. I'm happy to be before you again presenting this year's fiscal budget. This is the fourth budget of this Administration and the third that I've been fortunate enough to prepare and present to this Commission. As the Mayor just stated in his budget address, this budget proposal is structurally balanced and it provides for a reduction in a tax millage and fire fee. We continue our commitment to investing back into capital infrastructure and enhancing our level of service. Finally, this Commission should also know that we continue to utilize the strategic objectives established by this Administration to guide our resource allocation decisions. Total recommended appropriations for the fiscal year 2006 is $491.6 million. This is $31.4 million or 6.83 percent increase over the amended 2005 budget. The increase is largely attributable to the significant growth in tax base that we've experienced as a result of all the development occurring in the City. Conversely, the expenditures in this upcoming fiscal year continue to be impacted by increasing pension obligations. Additionally, contributions to capital and strategic initiatives from the general fund have been significantly increased to address the completion of the ERP (Enterprise Resource Planning), and land management system implementations, and the continuation of the Miami 21 project. Growth in FTE (full-time equivalent) head count included in this proposal also accounts for a portion of the increase in the expenses and will be discussed in detail later in this presentation. The Commission should note, in order to achieve the total balanced budget, we're recommending the use of approximately $25 million of the City's reserves. More than 70 percent of the City's revenues is generated from ten sources. We spend a great deal of our department's resources analyzing and tracking those sources. They include utility service taxes, solid waste fee, half -cent sales tax, parking surcharge, fire assessment, and of course the largest single source, ad valorem taxes. I want to walk you through a few of the more significant revenues and the affects that recent legislation and recommendations have had. What is important to note about this slide is the fact that recurring revenues has grown by approximately 8.28 percent. That percentage -- and it's highlighted in yellow at the bottom of your -- of the presentation there -- that percentage will be compared to the growth in recurring expenses later on in this presentation. The City's tax base has again increased significantly since last fiscal year. Certified preliminary tax base figures indicate that total taxable base has grown by $5.8 billion or 26.8 percent, giving us a total taxable value of 27.7 billion. One billion of this increase is directly attributable to the new construction, leaving the remaining 4.8 billion of tax base increase associated with appreciation of existing property. The tax base growth translates to a total ad valorem tax revenue of twenty-two hundred, eleven point nine million dollars. This assumes the imposed millage rate of 8.4995, which is approximately, as the Mayor just stated, two -tenths of a mill lower than the prior fiscal year. The rollback rate for the current year is 7.14728 mills, which is approximately 18.92 percent increase from last year. This translates to an increase in tax revenue of $33.6 million. As the Mayor just stated earlier, this Administration made a firm commitment to reducing the tax millage. This graph demonstrates how the combined millage rate, the line in blue on your screens, has decreased, as the taxable value, the pink line, has increased. The reduction has been nearly one mill over the past four years, and translates to a total savings to the taxpayers of approximately $54 million over the same period. This Commission also requested that we develop a plan to eliminate the fire fee. This year we're embarking on a methodical reduction approach. We will continue to reduce the fire fee in future budgets until it no longer appears in its current form. This year's budget proposal includes a ten percent reduction in the fire fee to $55 per residential household. The financial impact of this reduction is approximately $1.5 million less revenue, leaving a total revenue for this year expected to be at $13.5 million. Other notable revenues. The proposed budget assumes the residential solid waste fee will remain flat for the upcoming fiscal year at $325 per household. In fact, based on the legislation passed by this Commission last year, the fee will remain fixed for the next four years. It will generate approximately $21.7 million in revenue for fiscal year 2006. Contributions from utility service tax is down significantly from our amended 2005 budget; City of Miami Page 6 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 approximately $3.7 million or 8.65 percent. This reduction, as has been put on the record before, is largely attributable to the bundling of services being offered by many of our telecommunication vendors. Half -cent sales tax for the upcoming fiscal year has increased slightly over last year by approximately $835, 000, and finally, FP&L (Florida Power & Light) franchise fee is up by 1.7 or 8.7 percent. This increase -- both of these increases are attributable to volume and pricing increases for those services and goods. Recurring expenditures grew by 7.53 percent from the amended 2000 budget, which is approximately $30.8 million. If you recall in the earlier slide, recurring revenues grew by 8.28 percent. This would indicate that the City is operating with a positive margin, or more simply stated, recurring revenues are growing at a faster rate than recurring expenditures. This is an indicator that we're starting to better contain our operating expenses, but let us not forget that although this indicator is moving in the right direction, we still have to contend with the nonrecurring portion of the pension payments which continues to grow. Although this Commission approved a new contract for the Police Bargaining Unit earlier this fiscal year, we found ourselves with four expired contracts that are still being renegotiated. As a result, the existing step in longevity increases were used as the salary growth assumption for all bargaining unit positions. This year the City also implemented the Pay For Performance Evaluation and Compensation system, which ties directly into our strategic plan. This pay assumption was used for the unclassified, managerial/confidential, and executive positions. The proposal also includes a recommendation for an additional 66 positions; most notable are 34 in the Police Department, splits 20 sworn and 14 civilian; 16 in Public Works, and 9 between Finance, Employee Relations, and our IT (Information Technology) Department. The additional head count in Police will begin to address the additional needs that will be required of this growing city. The same dialogue also took place with our Fire Department, and this Commission already took action by allowing the City to apply for the SAFER (Staffing for Adequate Fire and Emergency Response) Grant that will help support the hiring of additional firefighters to address that need. As that process comes to completion later on into the next fiscal year, we will be coming back to the Commission to request those additional positions associated with that grant. The additional personnel in Public Works will allow the City, for the first time probably, to be proactive instead of reactive when it comes to cleaning storm drains, tree trimming, and sidewalk repair, and will ultimately result in, of course, less liability claims and a cleaner looking city on behalf of our citizens. The remaining nine noted on this slide are the professional staff that will be needed to complement the new ERP system that will be fully implemented over the next fiscal year. The financial impact of this new staffing will be approximately $2.4 million. The Commission should note, in keeping with responsible financial accountability, the positions that we knew would not be filled immediately were only funded for a portion of the fiscal year. Pension costs for the upcoming fiscal year continue to creep up. At a glance, the budget request from our two pension trusts, FIPO (Firefighters and Police Officers) and GESE (General Employees & Sanitation Employees), total 17 -- $77.6 million; 25.2 million for GESE and 52.4 for FIPO. When we took a further look into the numbers, 73.1 million of that contribution represents the actual contribution to the pension assets. This is an increase of approximately $8.1 million over 2005. The remaining $4.5 million covers the administrative costs of both trusts. In accordance with the City's code, the boards will be presenting their budgets to the Commission for approval later today. Another area that will require some attention by the Commission is the funding of our remaining outside agencies. Each of these agencies will be presenting their budget requests to this Commission either tonight or at our September 22 budget hearing. The City is recommending that the funding for Virginia Key Beach Trust and the Bayfront Trust remain the same as last fiscal year. We're recommending that we not fund the CRA's (Community Redevelopment Agency's) general fund request. Although this presentation display -- recommends no funding -- general fund appropriations for the Model Cities Trust, the Manager will be meeting with the board members this upcoming week to develop an action plan. Based on that plan, we will adjust our funding recommendation; all of which will take place prior to us coming back to this Commission on September 22. Finally, we are recommending funding the Civilian Investigative Panel and the Off -Street Parking request, as presented. In summation, I want to reemphasize that this budget proposal addresses the City's strategic needs and priorities. City of Miami Page 7 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 We continue to focus our attention on improving processes and service delivery. We continue to fulfill our commitment to reducing the tax burden on our citizens, and we continue to strive to reach our vision of an international city that embodies diversity, economic opportunity, effective customer service, and a highly rated quality of life. Thank you. Chairman Sanchez: All right. Thank you so much. Mr. Mayor, I believe you wanted to be recognized, sir. Mayor Diaz: Mr. Chairman, thank you. I thinkl have my voice back. I -- there's a resolution that has been distributed to all of you that I think is very germane to this whole discussion regarding budgets and the increases in valuations andproperties in the City ofMiami, and that is the issue of affordable housing. As all of you know, this is an issue that we're not only dealing with here in the City ofMiami, but people all over the state, and certainly all over the country, are dealing with it as well, and although -- I will tell you that I think this Commission and this Administration needs to be complimented for doing tremendous -- making tremendous strides in the area of affordable housing during the last three to four years, quadrupling the amount of investments, quadrupling the amount of affordable housing units that we have been rolling out. We all know that this continues to be a problem, and we all know that our resources are not only limited, but constantly being attacked by the federal funding and state funding, so working very, very closely with Commissioner Angel Gonzalez, who shares your concern for this area, we have come up with something that we think is an extremely bold approach, and in spite of all the suggestions that I've heard, I think, attacks this issue better than anything else that I've heard to date, and that is, ifI can briefly describe it, our properties, particularly our rental properties, are assessed, as all of you know, by the County Assessor's Office. The County Assessor's Office, by state statute -- and I'm glad we have a state senator in the room -- allows the County Assessor to use, at his or her discretion, a number of methods to value property. Typically, the comparable sales method is the valuation method that is used, which obviously produces the highest revenue for the government that that assessor represents. The problem is that all of you know that that additional assessment isn't realized until that persons sells the house -- or the apartment, and while that apartment may, in fact, be worth $20 million, it doesn't mean that that landlord has $20 million in his pockets, so the taxes go up; the taxes either have to be passed through to the tenants, which are the ones that can least afford it, or eventually, that landlord can no longer afford if he can't get or if she can't the pass-throughs increase can no longer afford and has to sell, and obviously, we get more developments that are built that are not affordable to the people that we want to stay in the City ofMiami. This is a critical issue, as all of you know in our City, as I've said, around the country, and this resolution is asking you to do three things: One is to urge the property appraiser ofMiami-Dade County to start placing valuation of multifamily rental property affordable to persons of low or moderate income on the income basis. In other words, what is that owner receiving in that revenues; what does that owner have in expenses; what's the net operating income from that property, and then base the valuation on that approach as opposed to the -- just because somebody sold the property three blocks away for a million dollars an acre, don't use that method, but use what that owner is having to deal with and having -- and realizing from an economic perspective. That's number one. Number two is to urge the legislature in the state of Florida to amend the Florida Statute that deals with this to require that assessors use the income approach specifically required, not discretionary for assessors, but require assessors all of the state of Florida to use the income approach to determine valuations for properties, as I said, that are multifamily for persons of low or moderate income, and then finally, request our City Attorney to determine the feasibility of obtaining some kind of judicial redress in order to protect tenants and lessees in the City of Miami from this inflated and unfair valuation. Many of these tenants -- many of these landlords don't even know that there is an appeal board that they can appeal their case to and try to have that appeal board revalue the property based on the income approach. People are being taken advantage of. This is something that we can do. Obviously, it's something that we need the cooperation of the County Commission, which I believe, if we all lobby together, we can get, and hopefully, get some support from the state legislature to see if we can do this. This will go a City ofMiami Page 8 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 very, very long way to dealing with the problem of affordable housing in our city, andl think we can be a model for other cities and other jurisdictions around to follow, and again, I want to thank Commissioner Gonzalez for not sleeping at night, like me and all of you, until we came up with this kind of a bold approach. Thank you very much, Mr. Chairman. Commissioner Allen: Good. Chairman Sanchez: Thankyou, Mr. Mayor, and we have -- Commissioner Allen: Mr. Chairman. Vice Chairman Gonzalez: Thankyou, Mr. Mayor. Chairman Sanchez: -- the sponsorship here already. We have Senator Fredericka Wilson -- Commissioner Allen: Wilson. Chairman Sanchez: -- who could sponsor it, and also with us -- joining us is Representative Arza, who's here, so we have the sponsorship already in Tallahassee. Commissioner Allen: Terrific. I think it's a very -- Mr. Chairman, it's very ambitious here. Chairman Sanchez: All right. Well, that is what he's proposing. Is there a motion? Commissioner Allen: I make a motion that we accept this resolution by the Mayor. Vice Chairman Gonzalez: I second the motion. Chairman Sanchez: There's a motion on the floor and a second. The motion is made by Commissioner Allen and second by Vice Chairman Gonzalez, and it opens for discussion. Commissioner Allen: Yeah, just a quick -- Chairman Sanchez: Commissioner Regalado -- Commissioner Allen: -- discussion. Chairman Sanchez: -- you're recognized for discussion, followed by Commissioner Allen. Commissioner Regalado: Thank you very much, Mr. Chairman. I congratulate the Mayor and Commissioner Gonzalez for their thoughts on this issue. The fact of the matter is that the property appraiser ofMiami-Dade County has been responsible for bringing wealth to the governments, but grief to the poor people of the City ofMiami because of what the property appraiser has decided to appraise the properties in Miami -Dade County. The County has 171 additional millions of dollars, and the City ofMiami, 35 millions of dollars, and actually, it's interesting that four billion of the property appraised is old properties, the properties that we live on and that we have lived on for so many years, and it is important to try to do something for the poor people that lives in apartment buildings because what the apartment owners will do is to pass on -- and they have to -- the increase. I think that the City try to have a straw ballot for the property appraisal issue. That is still in court. I am told by County Commissioners that if there is a special election for the extraordinary powers of the Mayor, the property appraisal issue, being elected rather than appointed, will be on the ballot, but believe that we need to do something and something urgent. I support this. The only problem that I see is that we need to do it and do it fast because the apartment building owners cannot hold it anymore. The one apartment owner in District 4 this year is paying $9, 000 more in taxes than last year, and he City ofMiami Page 9 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 only has 18 apartments, and he has to pass on that increase to the people. Of those 18 apartments, about 12 are occupied by social security recipients, whose check has only raised by two percent in the last two years, so this is a crisis, andl appreciate the Mayor's interest in the property appraisal. It is an issue that have been pushing in the media, but no one listens, andl think you, Mayor, for listening. Thank you, Commissioner Gonzalez, and hopefully, the County Commission will try to do something. I think that doing this, doing what we want to do in the legislative, but also having an elected appraisal [sic] accountable to the people, like any other county in the state of Florida would also help in this matter. Thank you, Mr. Chairman. Chairman Sanchez: Thank you. Commissioner Allen, you're recognized. Commissioner Allen: Yes, Mr. Chairman, thank you very much. First of all, I want to commend both Commissioner Gonzalez and the Mayor. Frankly, in my opinion, I think this is very ambitious and a pretty neat method to address this issue, andl think the methodology that you guys are proffering is the right way to go, but my question goes to the average citizen out there -- ands guess this question will be turned to our City Attorney. As I look at this resolution, presumably, it's going to pass favorably here. Does that then mean that we can go and seek an injunction in the enforcement of this, notwithstanding the fact that the Florida Legislature has not acted? Because as we discuss this, I think the public needs to get a full understanding of, if, in fact this passes, it may not have immediate -- impact immediately or it may, depending on what legal route we might take. Jorge L. Fernandez (City Attorney): We -- if it passes, we're committed to fully researching all the different options that the City would have to pursue this matter in the courts. The possibility of constituting a group of affected property owners and then, collectively, approaching the valuation board and, alternatively, also going to court to, you know -- Commissioner Allen: Seek an injunction? Mr. Fernandez: Exactly, seek some -- Commissioner Allen: An injunction. Mr. Fernandez: -- changes there. Commissioner Allen: Right. Mr. Fernandez: Again, I'm just speculating because we haven't had an opportunity to really research this and look at all of the options that we may have in the judicial system. Clearly, options one and two are very much in the policy/politics legislative arena option, which are really the more viable ones than the ones that could have greater impact in the shorter period of time. Option number three is the legal remedy, legal redress, and there you're talking about protracted litigation, at best, if we can find a viable cause of action to pursue or not, but that we will be reporting back to you as soon as we have made a determination. Chairman Sanchez: All right. No further discussion. It is a resolution. Oh, I'm sorry. Commissioner Winton: Mr. Mayor, I think we ought to take the opportunity, since we do have some of our legislators here, to also talk about the other issue relative to affordable housing, and that's the Affordable Housing Trust Fund that the legislature, I understand, this past session passed a modification to, and that modification is going to cap the amount of revenue that is accepted into the trust fund. I think the order of magnitude is it collected $450 million this year, order of magnitude, or last year, and two years hence, the trust fund amount is going to be capped at 250 million, and the remaining, the incremental amount, which, in today's dollars, would be another 200 million; by then it's probably another 250 million, is going to go into the City of Miami Page 10 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.2 05-00926a Office of Strategic Planning, Budgeting, and Performance general fund, and that doesn't seem logical to me, given the state of affordable housing, the crisis that we have statewide. It isn't just a South Florida crisis any longer; it's a statewide crisis, so -- and the Mayor andl have talked about this. I hope that one of two things happens as the Florida Legislature moves forward One is forget about the cap; make sure that all the money collected goes into the Affordable Housing Trust Fund and none into the general fund or if there is this burning desire to create the cap, then allow local municipal governments, even if we took it to the vote of our citizens, continue to collect it because all of us buying real estate already paying it, let us continue to collect it; y'all keep the cap at 250; we get our proport -- whatever is generated out of our local community, we can put it back into affordable housing in our local community, and so there's an option there, andl hope y'all will consider doing one or the other because, particularly down here -- and y'all are all reading the newspaper articles -- land values are going out of sight, costs for construction are going out of sight, and there isn't going to be a simple solution because we're not Bismarck, North Dakota, where population growth for the past 40 years has been zero. We're Florida, where the population growth for this past hundred years has been dramatic and will be for the next hundred years, I'm going to anticipate, and we don't have much land, so supply and demand is going to be hugely at work, and so I think it's up to us right now to do more than we can even think of today to figure out how we're going to address this housing crisis that is on us now because it's only going to get worse every year as we look forward, so you will see we're going to have more discussion about that even at the Commission level, and I'm sure we're going to bring something to Tallahassee this fall for y'all to consider as well, but since we had you here in the audience, I just couldn't resist the opportunity to at least plead the cause, if you will. Thank you. Chairman Sanchez: And possibly, this resolution. Commissioner Winton: Yes, absolutely. Chairman Sanchez: All right. Any further discussion on the resolution? If not, all in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries, Madam Clerk. ORDINANCE First Reading AN ORDINANCE OF THE MIAMI CITY COMMISSION DEFINING AND DESIGNATING THE TERRITORIAL LIMITS FOR THE CITY OF MIAMI FOR THE PURPOSE OF TAXATION; FIXING THE MILLAGE AND LEVYING TAXES IN THE CITY OF MIAMI, FLORIDA, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006; CONTAINING A SEVERABILITY CLAUSE, A REPEALER PROVISION AND PROVIDING FOR AN EFFECTIVE DATE. 05-00926a Legislation.pdf 05-00926a Summary Form.pdf 05-00926a-Submittal. pdf Motion by Commissioner Allen, seconded by Commissioner Winton, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 4 - Commissioner Winton, Sanchez, Regalado and Allen Absent: 1 - Commissioner Gonzalez Chairman Sanchez: All right. We move on to Budget Hearing Item Number 2, which is an ordinance on first reading. City of Miami Page 11 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Larry Spring (Chief Strategic Planning, Budgeting & Performance): Commissioners, the BH.2 item is the actual ordinance establishing the -- or affixing the millage and levying taxes on the City of Miami for fiscal year 2 -- beginning October 1, 2005 and ending September 30, 2006. The relative millage rates for those -- for that fiscal year that we're proposing, general operating millage of 8.4995; debt service millage of .765, with a total millage of 9.2645. Chairman Sanchez: And, basically, what you're doing here is setting the boundaries of the City taxation. Of course, it's -- this is an ordinance, but it's not going to require for us to vote today, correct? Mr. Spring: No. Actually, this ordinance does require you to vote. The actual budget appropriation is a proposed resolution that will actually be voted on -- Chairman Sanchez: Based -- Mr. Spring: -- at the next -- Chairman Sanchez: -- on the Florida statute change that requires now that -- Mr. Spring: Our charter change. Chairman Sanchez: -- it doesn't have to be an ordinance, but a resolution? Mr. Spring: Correct. Chairman Sanchez: All right. OK. All right. It's an ordinance on first reading. Is there a motion? Commissioner Allen: I make a motion we -- Chairman Sanchez: Motion is made -- Commissioner Allen: -- adopt the item. Chairman Sanchez: -- by Commissioner Allen. Is there a second? Commissioner Winton: Second. Chairman Sanchez: Second by Commissioner Winton. Before we open it up for discussion, it is a public hearing. Anyone from the public wishing to address this Commission, please step forward and be recognized. All right. Sir, you're recognized. Mariano Cruz: My name is Mariano Cruz, 1227 Northwest 26th Street, Miami. I agree with 9.2645 millage; fine with me, the tax and everything. I don't worry about the tax. We all pay taxes. No free lunch, but is the equatability of service that we're about. I'm going to mention a few instance now. Like I was coming down now South Miami Avenue, Bayshore Drive, East Fairview, Tiger Tail; the only place I saw old debris from the hurricane was at the beginning of South Miami Avenue. All the rest either clean or you see -- I saw new fresh leaf new (UNINTELLIGIBLE). Now, you go to 26th Street where I live -- I still debris there from the hurricane, and we live six blocks from Solid Waste, and pay $325 Solid Waste fee, the same fee that all these houses in Coconut Grove, same amount of money. Where is the equitability? I don't get equal service. The people here in the Grove get better service than I get. How come? It shouldn't be. We should start doing, no, equalibility [sic] of service. Now, going to another place in -- like in the bond issue. I pay a service there for the bond issue, for the $255 million, the neighborhood. You know, my wife probably is watching television; I had to say that because City of Miami Page 12 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 she told me. Look it, they have done nothing in our neighborhood with the $255 million. I'm not going to say other neighborhoods because I'm not going to mention them; they know where the money has gone, and) know where the money has gone because I am in that board, so I know. I am in the board. I know where the money has gone, and (UNINTET,T IGIBT ,F) Northwest 28th Street, and) mention that all the time about being fixed, because 28th Street was fixed from 27th Avenue to 17th Avenue with Community Development money in 1977/'78 and was fixed, but they stop there, and then east of that, five, seven blocks up to 1-95, nothing being done, and you go there, you see all the potholes and everything and whatever is there. You know, is there -- why East Allapattah was -- East Allapattah had received nothing. I have a sidewalk there next to me that's broken; haven't been fixed. They took pictures. They gave it to Public Works. Public, they filed it under X, Y, Z. They filed that -- those pictures. They have done nothing, and) pay money. I pay service debts. Why are they not fixed? Why? What will -- what's the difference? I am a taxpayer and) going to say it in Cuban -American or anything, no. Here, I am a taxpayer, so I want to be treated like all of the taxpayers, same thing for the Grove, Liberty City, whatever it is. You know, that's something going on there. Now, other thing that's happening, the code enforcement. Some of those people that are inspectors are very mean to old people in my neighborhood. Instead of educating people, they come and give a letter. Instead of knocking at the door, they put a letter (UNINTELLIGIBLE) you could get up to $500 a day fine. They come to me, "Why is that?" Knock at the door. Talk to the person. Look, we have this program. Don't make his life miserable. That's what they doing there, many of those. I don't know why. It shouldn't be done. It shouldn't be done. They do -- they don't do that in Coconut Grove, I bet, because you would have tons of people here in City Hall, so they (UNINTET,T IGIBT ,F) they don't know anything, and you know, even -- an old man was told -- he got his birds there he like for his therapy. They told him, you got to get rid of that. You know, what is that? The old man with his little birds, and he get to put his birds inside a bedroom because he couldn't have a bird cage outside. Without papers, only thing just say a vermin order. We living in a dictatorship, in absolute power? We live here. We are taxpayers. In Allapattah, we are taxpayers, too, and) am checking that. Now, like I say, and the last one, the fire tax. The fire tax six -- used to be $61. Reverse (phonetic) this tax, because you see all these mansions here that go through 3, $4 million, they don't pay $61 and that would be 55. Actually, it should have been 54.90 because ten percent of 61 is 6.10, and you go down to 54.90, and we'll do -- that's a (UNINTET,T IGIBT ,F) tax and shouldn't be. Anyway, we only had to call fire rescue once this year because my wife tripped in a sidewalk in downtown and broke her knee, and called rescue, and rescue (UNINTELLIGIBLE) they -- Chief Bryson told me the investigation and everything was according to the book. What she told me that when they get there, they didn't immobilize the knee, and the knee bent again, and she had a lot of pain, and they take her to the hospital, but like I say, they should treat everybody the same way. That's all) got to say. I don't worry about anymore, but like I say, I pay City taxes, and everything I talk is about City taxes. Whatever they get, Community Development, that's my federal taxes and the state, trust, whatever, those are my six percent sales tax. That's another thing, but we all taxpayers. That's the main thing. Chairman Sanchez: And you are entitled as a taxpayer. Mr. Cruz: Right, and be -- like I went to the County to said the same thing. I told -- I pay the countywide taxes; I want to receive my services because I pay taxes, the same thing like anybody else, regardless of the amount I pay, but -- Chairman Sanchez: All right. Mr. Cruz: -- let's see how the City (UNINTELLIGIBLE) -- you're going to have the 34 positions as policemen (UNINTELLIGIBLE), make sure they get the police car and the logistic that go with that because people have been complaining to me that they don't get -- there's not enough police cars. Thank you. Chairman Sanchez: Point well taken, and I believe the Vice Chair would like to respond to your City of Miami Page 13 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 statements. Vice Chairman Gonzalez: Mariano, we all pay taxes. You pay taxes. I pay taxes. Mr. Cruz: Yeah, I know. Vice Chairman Gonzalez: We all pay taxes. In reference to the Homeland Defense money for projects, I brought up that issue this morning here, and you're very, very familiar with City government issues, and if you go back -- and I'm sure that you have because you keep all kind of documents, and you're very organized. If you look at the proposed $255 million bond issue -- andl wasn't a Commissioner back then, OK -- Mr. Cruz: No, yeah. Vice Chairman Gonzalez: -- all Allapattah -- all District 1, not Allapattah, District 1 received from that bond issue was $900 million to clean a mess that was created in Allapattah for the last -- $9 million, I'm sorry -- Unidentified Speaker: (INAUDIBLE). Mr. Cruz: Fern Isles. Vice Chairman Gonzalez: -- Fern Isles, OK -- Mr. Cruz: Yeah, I remember, yeah. Vice Chairman Gonzalez: -- and $5 million for parks, OK. I have to disagree with you that we haven't done any projects in Allapattah because we did -- Mr. Cruz: No, no, no, no, no. Look what I mention, around my house. Vice Chairman Gonzalez: Well, around your house -- Mr. Cruz: Right. Vice Chairman Gonzalez: -- but let me tell you -- Mr. Cruz: I don't worry about your house. Vice Chairman Gonzalez: No, no, but wait a minute. Wait a minute. Mr. Cruz: My sidewalk. Vice Chairman Gonzalez: You know what, I'm going to make sure that the first money that I find Ido -- Chairman Sanchez: We're going to fix your sidewalk. Vice Chairman Gonzalez: -- a street next to your house so you'll be happy. We did 34 -- 35th Street, we did 34th Street, we did 21 st Street, we did -- we're doing 19th Avenue, that has been a mess -- Mr. Cruz: I know, I know. Vice Chairman Gonzalez: -- for years and years, where Arcela Rios (phonetic) lives. City of Miami Page 14 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Cruz: Yeah. Vice Chairman Gonzalez: We have done -- we have planned -- we did 22nd Court. We're working on 22nd Place pretty soon, so we're doing projects in Allapattah, and you know -- and let me finish. Mr. Cruz: Yeah, go ahead. Vice Chairman Gonzalez: Let me finish because I heard you and we all heard you, OK, and gave you the opportunity to express yourself. The reason, the reason that those projects were done -- and we're doing more projects -- is because this Commissioner has been fighting to get monies from other sources to bring the same equality that you're talking about, not from the bond issue because the bond issue was something that was approved as it was written by the voters, and no one can deviate from that, and you know that better than me -- Mr. Cruz: Yeah. Vice Chairman Gonzalez: -- because you're very familiar with government. That -- we cannot deviate from that, but did make certain that we found monies in other parts to bring improvements to our district and to Allapattah -- Mr. Cruz: What about my sidewalk? Vice Chairman Gonzalez: -- and we're going to continue to do that, andl had that as a discussion this morning, and said that cannot blame anybody, I can't blame anybody. It must be an overseen. It might be -- I don't know what, but in the bond -- on the Homeland Defense Bond issue, we were forgotten. We were given $9 million to clean a mess that I don't know how many people created for the last four years in our district, in our neighborhood, and then all they did was said "Here, you've got $9 million to clean up the mess that I create for you." That's all the money that we got from the bond issue, so you know, but believe me, that I will continue to work with the Administration, and with the Mayor's Office, and with my colleagues to find more money so we can do more projects, and eventually, I will get to do your sidewalk and your street, so you'll be happy, OK. Thank you. Mr. Cruz: OK. Thank you. Chairman Sanchez: Next speaker, please state your name and address for the record. Mr. Arriola: Commissioners, let me say something else to you. You not only did have one dump in your park, you had two dumps in your park -- Vice Chairman Gonzalez: Two dump sites, right. Mr. Arriola: -- and the two projects that we're trying to get, as you know, somehow they were dump sites, and now we're going to clean them up for you, but you know that there were two dump sites, not one. Vice Chairman Gonzalez: Fern Isles and Grapeland Mr. Arriola: Yes, sir. Chairman Sanchez: Yes, sir. State your name and address for the record. Albio Castillo: My name is Albio Castillo. I live in 2386 Southwest 5th Street. I'd like to know City of Miami Page 15 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 is when is Miami 9 is going to be improved? One of your administrators says about putting the circles. This department is going to circle. I have complained and it's still not getting done. The City ofMiami Commission (UNINTELLIGIBLE) I'm lucky to be played once a week, it is a miracle. Sometimes I get played on a Monday, and I'd like to know is when is this going to be solved because I'm getting tired of hearing a Miami -- Bicentennial Park, which is a year old. I'd also like to know is if there's any legal problem (UNINTELLIGIBLE) district, if that could be playing on a municipal channel? Chairman Sanchez: I'm sorry, how many questions do you have? I'm sorry. Mr. Castillo: Well, I've got some more, hold on. Chairman Sanchez: No, no, but we'll answer them one at a time. I mean, you threw out four. Let's go back to the first one -- Mr. Castillo: Yeah, because -- Chairman Sanchez: -- and we'll have somebody address it for you or I'll address it for you. Mr. Castillo: OK. I also like to know is what is going to happen with our employees retiring in the City ofMiami between 350 and 500 on the pension that the City ofMiami taxpayers paid on that, and it already happened at (UNINTELLIGIBLE). One time the City did not have enough money to pay the pension fund. Chairman Sanchez: Well, there are two issues here. We're talking about one, which is the retirement of -- Mr. Castillo: Uh-huh. Chairman Sanchez: -- several Police and Fire that were hired at one time, and today we're faced with a large number of them either possibly -- they're on the drop, so they could go any time they want, or they could go any -- you know, a year from now. I think the Administration has been trying -- hired police officers. We know that the process has been a little hard because they have to go through -- Mr. Castillo: I'm perfectly aware of that. Chairman Sanchez: -- background, they have to go through psychological, and those -- Mr. Castillo: Physically, mentally -- Chairman Sanchez: -- are issues that we're being faced today. Mr. Castillo: -- and a few other things. Chairman Sanchez: Exactly, so we are working. The Administration is taking the leadership as to hire, not only Police but Fire, and the positions that were presented today, because we're going to tip -- we're going to have to provide a level of service based on the growth ofMiami. We are addressing those issues, and you know, if the Administration wants to add in on, you know, your question -- I mean, I hope I was able to respond, you know, to answer your question. We're hiring, as we go along. We realize we're going to have to hire some more. Mr. Castillo: I also like to know is how is the City going to (UNINTELLIGIBLE) the growth in the (UNINTELLIGIBLE) town and Brickell area without fire -- adequate fire department in those areas growing too much, and if we don't have an adequate fire department to handle that. We City ofMiami Page 16 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 have a half of a station in Shenandoah and Wynwood area, we have Rescue, but if the City continues to grow in the Brickell and downtown, the Fire Department cannot handle if we have a major fire in these big elephants that we're building. Chairman Sanchez: Well -- Mr. Spring: Would you -- Chairman Sanchez: The Administration -- Mr. Spring: I mean -- Chairman Sanchez: Chief -- I mean, listen, we do have an adequate fire department. As a matter of fact, we have the best fire department in the State. Mr. Castillo: I know that for many years, sir. Chief William Bryson: Chief Bryson, chief at the Fire Department. Well, yes. What we plan on doing is the SAFER (Staffing for Adequate Fire and Emergency Response) Act that you all approved should hire us if we get it, and we think we are. We've had, so far, very good correspondence back; 26 more firefighters. We plan on increasing our EMS (Emergency Medical Service) services for this year in the Brickell area and also out west, where we don't have a rescue unit, and if those things happen, we've been assured by the Budget director that he will come forward for hiring these extra firefighters that will be, in the first year, 90 percent funded by the grant, and it's a very good thing. If it doesn't, we will be back saying we need those units, and I've assured my friend here that we are going after those units because of the growth of the City. Mr. Castillo: Thank you. Chairman Sanchez: All right. Mr. Castillo: I'll continue on. I also like to know is -- I made a suggestion in code enforcement. The City ofMiami has a hard time collecting. I made a suggestion on March 10 for collection, and just eliminate 250 and 150, and start collecting at 10,150 to start collecting, and eliminate the 250 and the 500 to start collecting. Code enforcement. Chairman Sanchez: Do we have the Code Enforcement director here, please? Would you elaborate on the steps that you're taking to assure that payments are being made to the City, and what your efforts are? I believe he asked what the efforts are as to what we're doing in the entire City. Mariano Loret de Mola (Director, Code Enforcement): Payments on specifically what? Chairman Sanchez: Fines. Mr. Loret de Mola: Oh, fines. Yeah, we issue the fines and they go on and pay it, or they can appeal the tickets, and under the appeal, we prevail or the ticket is taken away, but the payments, that's the Finance Department. That goes to the Finance Department to the central fund Chairman Sanchez: Did that answer your question? Mr. Castillo: Yes. Chairman Sanchez: OK. Listen, your questions would have been better at the next item, which City ofMiami Page 17 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 pertains to the employment -- Mr. Castillo: Well, I'm sorry. Chairman Sanchez: But it's all right. Mr. Castillo: I'm just going -- Chairman Sanchez: It's all right. It's all right. Go ahead. Mr. Castillo: Thank you, sir. Chairman Sanchez: You may proceed. Mr. Castillo: Then my next question is on the bond issue. I would like to know is how is the City going to handle the white elephant that the Administration inherit on illegal meters in the capital bond area? There are illegal meters that are not properly paid, not properly marked and you're using bond money. How is the City going to handle that and other projects and breach a contract that contractors do not comply with the City and just abandon, and then they come in another two weeks. How is the City going to handle that? Chairman Sanchez: Bonds with meters? Mr. Castillo: Yes, because -- Chairman Sanchez: We don't do -- Mr. Castillo: -- illegal meters that are not properly marked and not properly paid, is that being on the capital bond? Chairman Sanchez: Well, that has nothing to do with the bonds. You're talking about parking meters? Mr. Castillo: Yes, sir. They're illegally -- Chairman Sanchez: That's Off -Street Parking. Is there anyone -- Mr. Castillo: Exactly. Chairman Sanchez: -- to address that issue? Mr. Castillo: And this, by the way, the Administration inherited this white elephant, just to make a clarification. Chairman Sanchez: And that white elephant is who, Off -Street Parking? Mr. Castillo: Yes, sir. Chairman Sanchez: OK. Mr. Castillo: It's been neglected for many years, and you inherited that. Chairman Sanchez: All right. Thank you. Do you have any other questions, sir? Mr. Castillo: That is all. City of Miami Page 18 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Chairman Sanchez: Thankyou so much. All right. Sir, yes. It is a -- yeah, it's a -- but is your question pertaining to the boundaries of taxation? John Talamas: Yes. Chairman Sanchez: It is. Please step up. Yes, yes. Please state your name and address for the record, so we're going to speak on the issues. Yeah, that mike is on, I believe. Mr. Talamas: OK. My name is John Talamas. I live in Coral Gables, but I -- my family owns two properties. Chairman Sanchez: I want to apologize. You did send me an e-mail today. I just got it, andl was going to -- Mr. Talamas: Thank you, sir. Chairman Sanchez: Yeah, I was going to -- I haven't had a chance to respond. Mr. Talamas: That's OK. Chairman Sanchez: Thankyou. Mr. Talamas: We own two commercial retail properties in the City ofMiami, and the issue is about property taxes and the way that they've been escalating. I'm going to read to you a letter that read to the County Commission on Tuesday, and after read the letter, I felt that maybe it may have sound a little hostile or like it was directed towards them personally, andl just want you to know that I'm not directing this to you personally, but I -- it's more of how I feel and how a lot of our -- my friends who are taxpayers that own commercial property or rental houses here in the county, andl also want to say thankyou to -- Chairman Sanchez: And do you own -- do you have any property in the City? Mr. Talamas: We have two retail properties in the City ofMiami -- Chairman Sanchez: OK. Mr. Talamas: -- so -- andl also want to say thankyou to the Mayor for his comments that he made and the reception that he received from the Commission. It was more on a positive note than what we saw at the County. At the County it -- we didn't seem to have any reaction at all or any discussion about the matter. People were getting up and complaining on a hostile manner, but I'd like to read -- ifI can have a minute to read you this letter. I'm a little nervous. Chairman Sanchez: No. Take your time. Mr. Talamas: 171 do my best. Chairman Sanchez: Read the letter. Mr. Talamas: Thank you. Commissioners, City Manager, in the past few years, following the stock market crash, property values have increased by 30 to 40 percent per year in some areas, as investors look for a safe place to invest their money. This has, no doubt, been a great boom to the County and the various municipalities, especially since the millage rates, per thousand, have virtually remained unchanged. I'm sorry, can I give you a copy of this? I -- City ofMiami Page 19 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Chairman Sanchez: Sir, please give the copy to -- Mr. Talamas: OK. Chairman Sanchez: -- the City Clerk and she will distribute it among the Commissioners. Thank you. Commissioner Winton: No problem. Mr. Talamas: Sorry -- I meant to -- in the past few years, following the stock market crash, property values have increased by 30 to 40 percent per year in some areas, as investors look for a safe place to invest their money. This has, no doubt, been a great boom to the County and the various municipalities, especially since the millage rates, per thousand, have virtually remained unchanged. There is a pseudo real estate economy out there unrelated to job growth and income to substantiate these investments. It is primarily related to speculative developers, investors, and flippers supported by exotic loan practices that meet affordable monthly payments. As Mr. Greenspan calls it, a conundrum, or I like to think of as old phrase "irrational exuberance," except for the real estate market. This phenomenon occurring here in Dade County is creating higher taxable values of properties unprotected by Amendment 10, and a millage rate that is in great need of a downward adjustment. This is causing tremendous hardship to property owners and tenants. I realize the county and municipalities have annual cost increases, such as guaranteed pension funds and rising healthcare insurance, but so do we, except that we had added to that soaring property taxes with less services, property insurance with less coverage, and non -guaranteed pensions lost in the Stock market crash. Residential tenants cannot simply ask for a salary increase, nor can a retail tenant raise his prices 30 to 40 percent each year. They have a market place to contend with, while government simply tacks onto the taxpayers. In the past, I have heard government officials blame the rising tax bills to the County because they are the ones who assess the property values. Well, fine, this is true, but it's high time that we look very close at our budget and continue to cut unnecessary spending and give the taxpayers a break by lowering the millage as much as we can. Please, andl beg of you, don't insult us. This pertains to the Dade County. They -- last year they gave us a three cents per millage. Please don't insult us with a three cents per thousand reduction, as you did last year. Many officials have said, "Well, you now have an opportunity to sell and make a bundle of money." Please, for years in good times and bad, this is what we do for a living and want to continue, as there is a great need for affordable retail space and residential rentals to sort -- to this sort of community. Not everyone can afford to buy or even qualifl, to buy. A substantial reduction in the millage rate is greatly needed for every taxpayer in this county facing runaway property values. There are many areas of the budget, including public, school, waste, guaranteed healthcare, guaranteed pension funds that are becoming nonexistent in the private and corporate sector. These are challenges we face every day while public employees take it for granted. I ask every taxpayer to take a close look at how your Commissioner votes on this matter, and let them know how you feel the next time at the polls, andl thank you for your time, andl appreciate -- Chairman Sanchez: Thank you, John. Mr. Talamas: -- your -- Chairman Sanchez: Does anybody want to address Mr. Talamas? Commissioner Winton: Well, I think the Mayor did, right upfront when he talked -- Chairman Sanchez: Well -- Commissioner Allen: Yeah. City of Miami Page 20 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: -- about the fact that we're paying $70 million this year into the pension plan. We've paid almost $70 million last year into the pension plan when, historically, we're lucky if we pay 10, and the whole story line is because the employee pension assets lost $300 million during the Stock market crash, and the taxpayers are required to fit -- foot the entire bill for the 300 million, so we paid almost 40 million, over 40 million, 70 million, 70 million, you know, we're getting well past the halfway point, but I'm understanding that this is going to go on for quite a few years to come. We haven't had that discussion here yet, but the point is this. In a government that has an operating budget under $500 million, a $70 million hit a year is a huge chunk. That represents almost three mills? Commissioner Allen: Um -hum, right. Commissioner Winton: We could be doing a lot if we could solve that problem. Chairman Sanchez: John, let me give -- Commissioner Winton: We are not oblivious to the problem. We're going to have a great debate on that. Mr. Talamas: I understand. Commissioner Winton: We've talked about it among our -- at this Commission meeting several times in the past, and over the long haul, we're going to win this battle -- Mr. Talamas: I hope so. Commissioner Winton: -- so -- Mr. Talamas: The situation that we face is that a lot of the retailers and the small businesses, they're just small business owners facing -- we, as -- in the last five years, my family has been busy just trying to pass on property tax increases and insurance increases. We're not increasing our base rent because it's just too much -- one property alone in the City ofMiami has gone up $4, 000. The other one has gone up $3, 000. This means that -- and then they're getting hammered with insurance increases. This means that we have to try to pass this on to them, and they're only small business owners. Chairman Sanchez: John. Mr. Talamas: Yes. Chairman Sanchez: I am extremely sympathetic to you and to many others that are being affected. Let me just tell you that the City and your business for the last seven years, we have been able to lower our millage, and today, you have a budget that, if it's approved, it's going to lower the millage even lower than that. Mr. Talamas: I appreciate that. Chairman Sanchez: We have the lowest millage that we've had in fifty -some years in the City. For the first time, because of our healthy revenues that are coming in, we're even lowering the fire fee, which was something that was last year heavily debated, and this year we're getting it done. Now, when you look at your card, your -- what's it called, the County card? Mr. Talamas: Trim notice. Chairman Sanchez: The trim note -- you'll see that you not only pay City; you pay County -- City ofMiami Page 21 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Talamas: Right. Chairman Sanchez: -- you pay School Board -- Mr. Talamas: Right. Chairman Sanchez: -- you pay WASA (Water and Sewer Authority), and then there's others -- Mr. Talamas: Right. Chairman Sanchez: -- so if you look at -- I mean, we are heading -- Mr. Talamas: I understand. Chairman Sanchez: -- in that direction. (UNINTELLIGIBLE) one time, the millage was at as high as it could be by law, at 10 percent -- Mr. Talamas: Right. Chairman Sanchez: -- so we will continue to work this government. I mean, I wish other governments would follow our footsteps as we are reducing the millage. Mr. Talamas: I know we need some help from the state level because what -- where Amendment 10 helps the homeowner, it doesn't help the owners of investment properties, andl had a discussion with one of the administrators in the property appraiser's office; they met me after the Commission meeting. The problem is is that, I guess if we do lower the millage for the investment properties, it does lower the millage for the properties protected by Amendment 10, so you know -- and that's where -- what they're afraid of is because they're going to lose revenue on the properties that are protected by Amendment 10, but this is the first time I've ever heard anybody talk about going to the -- what can we do about going to the state. We're just little people here. We don't know how to put things together to get the state level involved, like they did with Amendment 10, but we need that kind of help with our investment properties. Commissioner Regalado: Well, I'll tell you something. You're -- I see that you live in Coral Gables -- Mr. Talamas: Yes, sir. Commissioner Regalado: -- and your state representative is Marco Rubio, right? Mr. Talamas: Um -hum. Commissioner Regalado: Next week, he will be proposed as the president of the state legislature of the House, and Marco will be the first House ever president from South Florida. This is the time to go and talk to him. This is the time -- Mr. Talamas: OK. Commissioner Regalado: -- to do something about the legislature. Because you know, what you're saying is true, and you know, we are not going to get sympathy from the tax appraiser, because if they do lower your property taxes, they have to lower everyone, you know, and my thoughts has always been that governments are playing with fire because someday people like you are going to get together with other people like you and something like California, Proposition 13, is going to happen -- City of Miami Page 22 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Talamas: Exactly. Commissioner Regalado: -- in the state of Florida, and then government will just be stopped. A city in the state of Connecticut just had a charter amendment passed whereby the voters will have to approve the budget of the city council, and the voters last week rejected this budget because they thought that it was too much spending and not enough decrease in taxes, so it's time for you and the other people that own property to go and talk to the new chairman of the state legislature, who is your state representative in your city and ours. Mr. Talamas: Will they listen? Commissioner Regalado: Of course, they have to. I mean, they run like us -- Mr. Talamas: There seems to be a tendency to want to help only the low-income -- Chairman Sanchez: John. Mr. Talamas: -- rental properties -- Chairman Sanchez: John, that's -- Mr. Talamas: -- andl think we need to protect the small retailers, too, and the, you know, regular renters. I have rental property in Coral Gables, andl cannot pass the property tax to the tenant; otherwise, they can just buy a house, you know, butt really, really appreciate the positive attention and response that I'm getting from this Commission, andl thank you very much. Chairman Sanchez: OK. Thank you so much. Sir -- I believe we have another speaker here. State your name and address for the record. [Later.] Chairman Sanchez: OK, sir, please state your name and address for the record. Manuel Cimadevilla: Sure. Manuel Cimadevilla, 1717 North Bayshore Drive, Apartment 1254, Miami, Florida 33132. First of all, I just want to show you some of the properties. I have properties in Little Havana and Little Haiti, and you know, gentleman said that it's not affecting the lower income, but deal with multiunit apartment buildings; he deals with commercial space, but multiunit apartment buildings is basically stuck with the same situation, commercial, has a commercial. The only thing is that the people who rent these apartments are people that are barely getting by, andl had -- in my -- the building in Little Haiti, 78th Street, some of these people, they almost cried to me, and it's so sad when you have somebody there living for 24 years and now they basically are not going to be able to continue living there. Vice Chairman Gonzalez: Can't afford it. Mr. Cimadevilla: They can't afford it. A little old lady and now she needs to see what she's going to do, but -- you know, she's going to be faced with an eviction if she doesn't pay for it because, you know, I can't lose my building because of that, andl was looking at a study as far as five years back, and really, I'm not making any money. I'm making less money today than I was five years ago on this same property. This one in -- I'm just going to read to you how many units and the increases, and these increases have actually gone down, butt had significant, like probably double the amount of increase in these properties years prior to this. City of Miami Page 23 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: Increase in what? Mr. Cimadevilla: This one is eight -unit apartment building. Chairman Sanchez: I'm sorry. A decrease in what? Commissioner Winton: Increase in -- Chairman Sanchez: Let's be specific. Mr. Cimadevilla: OK. This year, this portion that I'm going to give you, the amount that it actually went up in value, the difference of -- as far as what am I having to put out of pocket now relevant to what I paid last year -- Chairman Sanchez: Right. Mr. Cimadevilla: -- so the increase, just alone, on that one property, and it's small in consideration to last year -- you know, the year prior to that, I paid more, as far as an increase, so -- but you know, it's staggering, the amount of money that I'm having to pay out, even today. This is like -- for instance, an eight -unit apartment building in 18th Avenue and Flagler Terrace, in the middle of -- heart of Little Havana, eight -- a two thousand -- $2, 000 more I'm having to pay just in taxes on just eight units. Chairman Sanchez: What's your total, what are you paying? Mr. Cimadevilla: I paid $13, 074, $13, 074 on an eight -unit apartment building. Chairman Sanchez: But that -- that's for everybody; that's the City -- Mr. Cimadevilla: That's for everyone. Chairman Sanchez: -- the County, School Board, WASA (Water and Sewage Authority), and everybody else. Mr. Cimadevilla: Thirteen thousand, seventy-four. Three years ago, probably, I was paying something like 7,000, you know, so we're hitting almost, you know, double of what I was -- Chairman Sanchez: What's -- let me see that, if you don't mind? Madam Clerk, can I read this or -- Commissioner Winton: It's a public document, trim -- Chairman Sanchez: You could go ahead. Let me just study this a little bit. Mr. Cimadevilla: OK. This is another one. Four units in 7th Avenue and 7th Street, Southwest, $1, 600 in addition, and last year it was more of an increase, but this year it was another 1,600. It's four units, four units. I mean, how much can you raise them up? What, $100 a piece each month? You can't. Commissioner Winton: Well, I don't think your math works that way. A hundred dollars a month a piece, your math doesn't work. Mr. Cimadevilla: Because this is just property insurance. We're talking about insurance -- Commissioner Allen: Are you -- City of Miami Page 24 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Cimadevilla: -- that's another story. Chairman Sanchez: Can I interrupt -- Commissioner Allen: Wait. Chairman Sanchez: -- you for a minute? Commissioner Winton: He said taxes. Mr. Cimadevilla: I'm just saying property. Chairman Sanchez: Let me interrupt you for a minute. Mr. Cimadevilla: Yeah. Chairman Sanchez: All right. You have a 20 percent increase on taxable value to your property from the County. Commissioner Allen: From the County. Chairman Sanchez: From the County, 20 percent based on your property. What that means, the property around you have sold higher, which isn't fair, because what it does is it pass the burden to you because you're the property owner, and then you have force it on the person who's making $7.50 an hour. Mr. Cimadevilla: Exactly. Chairman Sanchez: The resolution that was presented earlier today by the Mayor and approved by this legislative body and we have -- we're lucky to have a distinguished senator here with us today and a representative from the House -- is we're going to try to seek from Tallahassee, from Florida, the govern -- the Florida government to help us to protect people like you, who have rental properties, where they can't do this to you because right now, this City or this legislative body has no control whatsoever on the County appraisal individual. Mr. Cimadevilla: Right. Vice Chairman Gonzalez: Unfortunately. Commissioner Allen: Mr. Chairman, ifI may just add. In the interim, you might also -- you do have the right to contest whatever assessment by the County -- Mr. Cimadevilla: I have. Commissioner Allen: -- and I would suggest that you avail yourself of that. Go before that special master that handles -- Mr. Cimadevilla: Yeah, I've contested, you know -- and you know what they -- I mean, I've spoken through, you know, different companies that do property assess -- contestants -- contest property value, andl tell them, list -- like this one gentleman, this one company that did, I think, like -- has done about a billion dollars in property, right, andl told him, listen, between you and I, out of all of these files -- because he was charging me like 35 percent on whatever he happens to, you know, bring down. City of Miami Page 25 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Allen: Yeah, but see what I'm suggesting is that you have the right to contest the assessment. Mr. Cimadevilla: The assessment, right. Commissioner Allen: Right. You can go and argue that, but you've got to do your due diligence and look at all the comparable properties in and around your area. You go in there and you make an argument; the County will be there with their individual, and the person that sits there as the special master might see the merit in what you're saying and effectively reduce your taxable rate at that particular time -- Mr. Cimadevilla: Right, and -- right. Commissioner Allen: -- so have you done that? I would suggest -- Mr. Cimadevilla: Yes. I actually got -- I have a company that actually specializes in this, an attorney -- Commissioner Allen: Right -- Mr. Cimadevilla: -- that he does these properties. My family also has properties -- Commissioner Allen: -- so -- Mr. Cimadevilla: -- and he's actually contested it. Commissioner Allen: -- I guess we're -- you know, and if you did that -- Commissioner Winton: Mr. Chairman. Commissioner Allen: -- and you were unsuccessful, I guess we're all a victim of the market conditions, a free -- Mr. Cimadevilla: Yeah. Commissioner Allen: -- market enterprise, which is ever increasing appreciated value, but nonetheless, pursuant to what the Chairman said, we are making efforts in that direction, pursuant to what the Mayor has just put forth earlier, so we'll be able to handle that issue, and hopefully, we'll get some favorable results from our state legislative body and our lobbying body that goes before the State, and then of course, the City Attorney, whatever legal redress that he might have, so we're looking to that and we'll take care of it for you. Mr. Cimadevilla: Right. Commissioner Allen: Thank you. Mr. Cimadevilla: That's one of the, you know, situations, and basically, from the company who does these -- the attorney that does these -- try to, you know, petition these assessments, what he said, as far as a result of what he gets back, he goes, "look, I'm going to have to charge you 35 percent on whatever I reduce." Why? Because 50 percent of the properties is that the actual properties that they actually are able to reduce, and they say the -- as far as the portion that they're able to reduce is tops 30 percent; 25 to -- Commissioner Winton: Mr. Chairman. City of Miami Page 26 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Allen: But if you pay attention to it now, we're working on that methodology. If you look at that, what the Mayor introduced -- Mr. Cimadevilla: Right. Commissioner Allen: -- Commissioner Gonzalez earlier -- Mr. Cimadevilla: Right. Commissioner Allen: -- that will address the substantive issue that you're getting to, the methodology that they use. You have rental property, perhaps, that look at the income of those individuals; he can give you a lower tax base, so we are addressing that, so to that extent, I respectfully -- Mr. Cimadevilla: Right. Commissioner Allen: -- suggest that you might want to just stay in touch with our office here. Mr. Cimadevilla: Right. The other argument is that whatl see is as far as the millage rate. The millage rate, we're paying the -- one of the highest millage rates in Florida, face it. When you look at Bal Harbour, two point something; Coral Gables, three percent, maybe -- I mean, three millage rate. Commissioner Allen: But you got to -- you know -- Mr. Cimadevilla: City ofMiami -- and then -- Commissioner Allen: Yeah, but we're pulling ourselves out of a -- Commissioner Winton: Mr. Chairman, are we going to have a -- Commissioner Allen: You see -- Commissioner Winton: -- please. Are we going to have a debate here or are we going to move on with the budget? Commissioner Allen: Yeah. That whatl'm saying. Mr. Cimadevilla: OK. Commissioner Allen: See, we're pulling ourselves out of a morass that happened years ago with respect to that, so that's why, perhaps -- and we are lowering the millage rate, accordingly, as you (UNINTELLIGIBLE) in this budget, OK. Mr. Cimadevilla: Let me ask you, is it possible to lower the millage rate lower than what you're -- I mean, you're dropping it less than a -- like a, what, half a percent? Commissioner Allen: Well, couldl suggest, Larry might want to opine on that. Commissioner Winton: He already did. He's presented -- Commissioner Allen: (UNINTET,TIGIBT,F) -- Commissioner Winton: -- his budget. City ofMiami Page 27 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Allen: -- so -- Vice Chairman Gonzalez: All right. Mr. Cimadevilla: OK. Commissioner Allen: All right. Thank you. Vice Chairman Gonzalez: Yes, ma'am, you want to address the Commission? Carrie Baldwin: Yes, sir. Vice Chairman Gonzalez: Please come forward. Ms. Baldwin: First of all, I've never done this, so I'm kind of nervous -- Vice Chairman Gonzalez: Don't worry. Ms. Baldwin: -- so I'm following up on their -- on the theme. Vice Chairman Gonzalez: Lower the microphone so we can -- Ms. Baldwin: Oh, OK. Anyway, I'm sort of following the theme of the raise and increase in taxes. I've lived in Miami forty -some years. Commissioner Winton: Ma'am, we need your name and address for the record. Ms. Baldwin: My name is Carrie Baldwin. I own an apartment at 520 Northeast 38th Street, and what I feel that the problem is the assessor's office, the appraiser's office get the high appraisals. The municipalities collect the money with the County, and to me, the thing should be how the money is spent, not the monies collected, and it have to be some control on how the money's spent. I know I want to live in a beautiful city, which I am very grateful, but also, I have my own life, my own expenses, insurance. I'm in an age of retirement, andl thinkl speak for a lot of people like my situation; we don't make a lot of money; the taxes keep going up, andl think it has to do with controlling the expenses. I hope -- I make a living. IfI don't make enough, beautiful, but ifI make a little bit more, I spend more, so it has to be controlled and the money that the municipality and the County spend. I know you have to do a good job making the City grow; we have to keep the employees happy, but also I think it has to be some control on the money spent. That's my comment. Vice Chairman Gonzalez: Thankyou, ma'am. Thankyou. Anybody else wants to address the Commission? All right. The public hearing is closed. Mr. City Attorney. Jorge L. Fernandez (City Attorney): Reading the ordinance. Vice Chairman Gonzalez: Yes, sir. Commissioner Regalado: Mr. Chairman. Vice Chairman Gonzalez: Yes. Yes, Commissioner Regalado. Commissioner Regalado: IfI may, Larry, I guess that what we're doing here now is just setting the boundaries, so in the operational part, we can talk about the salary assumptions. Chairman Sanchez: Well, that -- did we already approve that one? City of Miami Page 28 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: No, no, we haven't -- Vice Chairman Gonzalez: Not yet. Chairman Sanchez: OK. Commissioner Regalado: -- so I will just wait -- Chairman Sanchez: To be -- yes. Commissioner Regalado: -- to be recognized for the second item. Chairman Sanchez: OK, so the public hearing is closed at this time. Vice Chairman Gonzalez: I already closed the public hearing. Chairman Sanchez: All right. Vice Chairman Gonzalez: I asked for the ordinance. I asked him to read the ordinance. Chairman Sanchez: Oh, I apologize. Sorry. Mr. Fernandez: No problem. Chairman Sanchez: I feel like a lion tamer. Mr. Fernandez: BH.2 is the ordinance. The Ordinance was read by title into the public record by the City Attorney. Priscilla A. Thompson (City Clerk): Roll call. A roll call was taken, the result of which is stated above. Ms. Thompson: The ordinance has been passed on first reading, 4/0. BH.3 05-00926b RESOLUTION Office of Strategic A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Planning, ATTACHMENT(S), MAKING APPROPRIATIONS RELATING TO Budgeting, and OPERATIONAL AND BUDGETARY REQUIREMENTS FOR THE FISCAL Performance YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006. 05-00926b Legislation.pdf 05-00926b Exhibit 1.pdf 05-00926b Summary Form.pdf DISCUSSED [This item will be considered on September 22, 2005.] Chairman Sanchez: All right. BH.3 is a resolution. A resolution of the City ofMiami Commission, with attachments, making appropriations relating to operational and budgetary requirements for the fiscal year commencing October 1, 2005, ending September 30, 2006. At this time, what I'd like to do is get a motion and a second. City ofMiami Page 29 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Larry Spring (Chief Strategic Planning, Budgeting & Performance): Commissioner, actually, this item you do not need to take action on. We presented it as a draft -- a proposed resolution to be considered at the final public hearing on September 22. Commissioner Allen: Which is -- Chairman Sanchez: All right. Commissioner Regalado: OK. This is where -- Mr. Spring: So, this is where you can -- Commissioner Regalado: -- I want to -- Chairman Sanchez: All right, so this is like a workshop. Jorge L. Fernandez (City Attorney): BH.3, yeah. Chairman Sanchez: All right. Mr. Spring: BH.3. Chairman Sanchez: At this time, what I'd like to do is recognize Commissioner Regalado, who has asked to be recognized, and then each Commissioner that's here could go ahead and take the floor. Commissioner Regalado: Thank you, Mr. Chairman. I am -- I want to address one of the issues of -- that Larry presented to us, the salary assumptions and the additional 66 positions; Police, 34; Public Works, Finance, and the financial impact of $2.4 million. We have been, I'm sure, following the tragedy of the Gulf Coast with Katrina, and if we have to learn lessons from Katrina, we have to understand that, number one, FEMA (Federal Emergency Management Agency) is never and never will be a first responder, so we need to understand that municipalities like us have to deal with the crisis like this like we did when Katrina hit us very hard in the City ofMiami several days ago, and that, in this order, Fire, Police, Public Works, and Solid Waste are the most critical agencies of the City. In fact, it is Fire who becomes the first responder when electricity was out. In my area, I didn't have electricity for five days, and the rescue trucks woke me up crossing by the corner of my house or by Coral Way by -- and because of the people, specially the elderly people being attended by rescue, so I'm a little troubled to see that there is no new positions for Fire. We have a rescue in Shenandoah Park. Hopefully, we'll have a fire station someday for the Coral Way area. We keep building and growing, we're going to have a problem in the west. We have a major problem because it's only the station in 59th and Flagler and that's it, other than the one in Northwest 7th and LeJeune, so I am very troubled. I cannot support this if we don't have more positions for Fire, because we do need Police and we do need more than 34; we all know that -- Mr. Spring: Right. Commissioner Regalado: -- but we need Fire. Commissioner Winton: Did they ask for any? Mr. Spring: In response to that, Commissioner, if recall, I did put on the record that because of the of the action being taken with the SAFER (Staffing for Adequate Fire and Emergency Response) Grant that we're in the process of applying for, it (UNINTELLIGIBLE) support us hiring those firefighters. That process will be done 30 days -- City ofMiami Page 30 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Allen: Right. Mr. Spring: -- within 30 days. At which time, when we come to the Commission to accept that grant, the additional staffing for Fire will be included -- Commissioner Regalado: Larry -- Commissioner Allen: Right, but there's a -- Commissioner Regalado: -- do you know -- Commissioner Allen: -- caveat to that, right? Commissioner Regalado: Yeah. IfI may. Commissioner Allen: It sunsets. Commissioner Regalado: You know and everybody knows that all the resources of Homeland Security, and FEMA, and all the new appropriations are being diverted to the Gulf state. In fact, we're spending $500 million a day with the recovery and the attention to the -- for the refugees. It is my understanding that Homeland Security is putting on hold all of the grants. I -- remember, I'm in the business of news so I have to be on top of the thing, so I am -- I'm just saying to you, I cannot support a budget where we don't have more Fire positions, because it is the first responder, and you know, we're running out of letters of the alphabet for hurricanes, and we don't know what's going to happen next year either, so I would tell you that if we don't know by the next budget meeting, I would not support this, if we don't have new positions for Fire, andl will fully endorse and support if we're places -- because I don't know if we know if we get a grant. I know that we apply, maybe, but it -- with -- now with this massive rescue recovery operation, I would think it's not that easy for all the communities to get grant from Homeland Security now that all the money has been used, so I just wanted to state that on the record. Chairman Sanchez: All right. Anyone else speaking on this item? This is BH.3, which is a resolution. No action taken. It's -- this is not a public hearing, ma'am. It's -- you'll get to speak on the other items that are going to be public hearing. Mr. Fernandez: Mr. -- Chairman Sanchez: As the Chair -- Mr. Fernandez: Yes. In essence, what Larry recommended is that you consider this item today, discuss it. If you have any changes, deal with the changes, but you will defer taking action until September 22 on this item. Chairman Sanchez: That's exact -- Commissioner Winton: Well, Mr. Chairman, let me ask a question, then. What -- we had a -- Larry, we had a discussion, I don't know, two months ago maybe, over the private hauler franchise fee that condominium owners have to pay; the debate where you said it was fair, andl said it's fundamentally unfair to charge that fee to condo dwellers because they're no different than a single-family homeowner, and a single-family homeowner doesn't have to pay it, and we were supposed to be reviewing that and contemplating what we were going to do about that fee, in term -- including adjust -- eliminating it for condos or adjusting it during this budget period, and until today, I kind of let that slip in my mind, and since I let it slip in my mind, it appears as though it slipped in everyone else's mind; is that correct? City of Miami Page 31 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Spring: Not necessarily. We -- Commissioner Winton: Oh. Mr. Spring: -- did meet with Mr. Jacobs. My staff has done some analysis, but of course, with the course of things going on, we've not come back and met with you, so if you'd like, between now and the next hearing, we can sit down, go over that -- those numbers, and -- Commissioner Regalado: But the fact of the matter is that now we all have condos, not only his district, so -- Commissioner Winton: Correct. Commissioner Regalado: -- you know, you -- Commissioner Winton: Yeah. Now, it's -- thank God, it's -- Mr. Spring: It is -- Commissioner Winton: -- finally a citywide issue. Mr. Spring: -- a citywide -- Commissioner Regalado: It is a citywide issue because -- Mr. Spring: It's a citywide consideration. Commissioner Regalado: -- you know, we got several going on in our district -- Commissioner Winton: You bet. Commissioner Regalado: -- and everybody here has, so to me, I mean, it's not -- this is not longer in stealth fee, you know; it's a reality that people are going to complain. Mr. Spring: And our analysis is a citywide analysis; it's not just District 2. Commissioner Winton: Well, I would anticipate that it would be, so -- but in your analysis, are you coming back with a plan or you just analyzing? Am I getting mush or am I getting something real here, huh? Mr. Spring: Well, I will sit down -- I'll set a meeting with you, Commissioner, and go over what we have. Commissioner Winton: Man, this sounds like a salesman at work to me, doesn't it? Chairman Sanchez: All right. Ma'am, I apologize. It is a public hearing, so I apologize, OK? Eileen Bottari: Yes. She told me that I could speak at this -- Chairman Sanchez: Yes. I apologize. I thought it was a resolution, but it's under the budget, and anything pertaining to the budget is a public hearing, so I apologize for that. You have the right to speak. Please state your name and address, and once again, please accept my apology. Ms. Bottari: I accept. My name is Eileen Bottari. I reside at 505 Northeast 76th Street, in the City of Miami Page 32 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Upper Eastside. I'm here today to talk specifically about Parks and Recreation, and most of this focus will be towards Commissioner Winton. Five years ago, Commissioner Winton, you stood toe -to -toe with me and Albert Ruder, who was the director of Parks, and endorsed a plan for Legion Park to build facilities for the children, and in 2001, we did start. We put in a vita course, a basketball court, and a tennis court, and for the last five years, I have been trying to get the rest of the plan funded andl have not been able to accomplish that, for whatever reasons. We have a toddler playground that needs to be built, and for those of you that don't know what a toddler playground, it's specifically for smaller children. The estimated cost for that is around $15, 000. The plan calls for two tennis courts; we have one built. We have a second tennis court that needs to be built. We had a summer program where we had 25 children that signed up to play tennis, and we only had one tennis court. We have two basketball courts in our plan and only one has been built. Over the summer, we had anywhere from 35 to 60 children playing basketball on one basketball court. Behind the community center there is a large field that is supposed to be leveled and filled in. Right now, it's with -- it has rocks and crab holes, and it's supposed to be set up for football and soccer. Estimated cost on the tennis court -- Commissioner Winton: In Legion Park? Ms. Bottari: Pardon? Commissioner Winton: Football and soccer in Legion Park? Ms. Bottari: It's -- Commissioner Winton: That area is going -- Ms. Bottari: -- the field behind the community center. It's supposed to be leveled and just filled in. Commissioner Winton: It's full of trees. Ms. Bottari: No, not behind the community center. It's a big open field, but it's not leveled and it's filled with rocks and crab holes, which is dangerous because the children are playing on there right now. If you add up the total cost of all of these items, it comes up to $80, 000 estimate, and every year I have gone to Parks and Recreation and asked for our funding; part of it, some of it, to get some of this started, andl was told in 2002, the money would be there in 2003, et cetera, et cetera. This year I've been told that, in 2006, the money will -- the money will be there in 2006. Well, I find that to be unacceptable. I mean, the children in my community have waited five years, and no child should have to wait five years to have facilities built. We have our free summer youth -- Commissioner Winton: I think we have -- I think we're going to -- I want to hear an answer. Ms. Bottari: Can I finish -- Commissioner Winton: You don't have to -- Ms. Bottari: Can I just finish, please? We have a free summer program -- Commissioner Winton: Well, if you want an answer, then sure, finish, Eileen. Ms. Bottari: OK. Well, I just wanted -- Commissioner Winton: Do whatever you want to do. City of Miami Page 33 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Ms. Bottari: I just wanted to state that we have a free summer program; that we have anywhere from 150 to 200 children at the park every summer. Ernest Burkeen: Ernest Burkeen, director of Parks and Recreation. The things that she's asking for is not really that big a deal; about $80, 000, andl think that we could fund this on impact fees, and so if you give me at least a month, I'll come back with a plan for you. Chairman Sanchez: All right. You got a month to come back with a plan. Ms. Bottari: I just want -- I just like to have a commitment that we can get this funded before the summer program starts in June of 2006. Chairman Sanchez: Ma'am, you just got a commitment that he's going to come back with a plan within a month. Ms. Bottari: OK. Chairman Sanchez: I think that's -- I've known the director, and I think he's -- Ms. Bottari: Well, I -- Chairman Sanchez: He gave you a word, that you'll have a -- within a month. If not, you come back and see me. Ms. Bottari: OK. Chairman Sanchez: All right. Thank you so much. Ms. Bottari: Thank you. Chairman Sanchez: All right. On this, I'm just going to state very briefly. As the Chair, I always speak last. My biggest concern here is that based on the growth that we're anticipating in the city, I think that we need to provide a good level of service. That is what government is all about. We need to provide the best possible service, andl know that this budget has a plan that will do that. You've got to take into consideration all the major projects that we have based on the bond issuance. These are major projects, major projects, and you know what? You could build the most beautiful project in the world; if you don't give it the proper maintenance and tender, loving care, you're back to square number one, so I will be on top of the Administration to make sure that we do have the sufficient manpower to make sure that all these beautiful projects that we're doing are properly maintained. On Police and Fire. We have a crisis in our hands. We have more than 300 police officers that are on the DROP (Deferred Retirement Option Plans), ready to go any time. I know that we've committed 20 additional sworn officers. We need to have a plan in place, if we're able to get them through the process, andl know the process is not an easy process. We want to make sure that we hire good, good police officers; that they go through the entire process, but if we do it -- or if we're able to get through those 20 additional, we should have some more because -- although it's a sin of the past when we hired in the 1980s -- went out and hired like 500 police officers, well, today they're retiring. Same thing with the firefighters; today they're retiring, and we got to make sure that once they retire, we're (UNINTELLIGIBLE) bring in -- to be able to maintain that level of service that the residents of Miami, the taxpayers want, so I will be sitting down with you, Mr. Executive Director and the Administration, because we're not approving this today. We still have the next meeting, based on the changes in Tallahassee from an ordinance to a resolution, giving us more time, butt need -- we need to focus more on the maintenance and level of service concept of this. Parks. I'm very pleased with parks. I could tell you that the Mayor said it clearly, when I first got here in 1998, we have increased Parks budget by 70 percent, and that is a significant start, andl know people City of Miami Page 34 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.4 05-00927 Office of Strategic Planning, Budgeting, and Performance / Department of Finance BH.5 05-00928 Downtown Development Authority are saying, well, build some more parks. Find me the land and we'll build the parks. Right now, we don't have the land, and you're certainly not going to go in the neighborhood and say, give me 15 acres; everybody move; we're going to build a park. Vice Chairman Gonzalez: Eminent domain. Chairman Sanchez: We have to work on the parks we have, expand them if possible, and provide the best programs in those parks. That's the solution. That is the reasonable solution. We're not a government of pies in the sky; we're a government of reality, and I think that's why today we enjoy a good reserve of $136 million, and the City's moving in the right direction, so having said that, there is no action taken on this resolution, andl want to --I thought we had Model City. Commissioner Allen: Yes, they are affected. Staff is going up there to bring those studies downstairs -- I'm sorry. My staff is going upstairs -- Chairman Sanchez: All right. Why don't we do something. Wait, wait. Let's -- Commissioner Allen: Yeah. We're ready. You guys ready? Chairman Sanchez: We'll get them -- DISCUSSION ITEM DISCUSSION CONCERNING A FINANCIAL UPDATE AND A BUDGET OUTLOOK. 05-00927 Summary Form.pdf WITHDRAWN Chairman Sanchez: And ifI could state for the record also, before you go on, that BH.4 has been withdrawn? Executive director, is that correct, BH.4 has been withdrawn? Larry Spring (Chief of Strategic Planning, Budgeting & Performance): Withdrawn, yes. Chairman Sanchez: OK. Commissioner Winton: What's that? What's BH.4? Commissioner Regalado: The discussion item. DISCUSSION ITEM DISCUSSION OF PROPOSED MILLAGE RATE AND TENTATIVE BUDGET FOR THE DOWNTOWN DEVELOPMENT AUTHORITY PERCENTAGE INCREASE IN MILLAGE OVER ROLLED BACK RATE. RESPONSE TWENTY AND 83rdPERCENT (20.83%) SPECIFIC PURPOSE FOR WHICH AD VALOREM TAX REVENUES ARE BEING INCREASED. City of Miami Page 35 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 RESPONSE: PURPOSE: DOWNTOWN ECONOMIC DEVELOPMENT PROGRAMS COST $ 581,593 100 CITY COMMISSION LISTENS AND RESPONDS TO CITIZENS COMMENTS REGARDING THE PROPOSED MILLAGE INCREASE AND EXPLAINS THE REASONS FOR THE INCREASE OVER THE ROLLED BACK RATE. ACTIONS BY THE CITY COMMISSION: 1. AMEND THE BUDGET, IF NECESSARY 2.RECOMPUTE THE PROPOSED MILLAGE RATE, IF NECESSARY 3.PUBLICLY ANNOUNCE THE PERCENT BY WHICH THE RECOMPUTED PROPOSED MILLAGE RATE EXCEEDS THE ROLLED BACK RATE 4.ADOPT THE FINAL MILLAGE RATE 5.ADOPT THE FINAL BUDGET 05-00928 Discussion Sheet .pdf DISCUSSED Chairman Sanchez: Let's go to BH.5. It's -- Commissioner Allen: OK. Chairman Sanchez: -- just a discussion item. Larry, let's get through this pretty quick. It's just a discussion item. Larry Spring (Chief Strategic Planning, Budgeting & Performance): BH.5 is actually DDA (Downtown Development Authority), so you have Dana Nottingham. Chairman Sanchez: And this is based on the concern with the pension and subsidies we make every year. I think that the writing is on the wall. Now, let me just ask you a question on that. Commissioner Winton: What item are you on? Chairman Sanchez: Well, I'll tell you what -- Commissioner Regalado: BH.5. Chairman Sanchez: BH.4. Vice Chairman Gonzalez: BH.4. Mr. Spring: BH.4 has actually been withdrawn. What that is is my normal monthly financial update, which I'm deferring. Chairman Sanchez: All right. It's been withdrawn. Mr. Spring: Yeah. Chairman Sanchez: Perfectly fine. We go to BH.5. BH.5 is a discussion, the proposed millage rate and the tentative budget for the Downtown Development Authority. That's the DDA. Do we City of Miami Page 36 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 have representation from the DDA? Yes, sir, come on up. Always a pleasure to see you, sir. All right, see if we can move along here. Have a peaceful budget hearing. Commissioner Winton: Don't we just need a motion to approve this? Do we need some explanation, Mr. Chairman? Mr. Spring: He needs to read into the record the millage statement. Commissioner Winton: OK. Pull the microphone closer to you and read in the record your millage statement. Chairman Sanchez: Sir -- yes, sir. State your name and address for the record. I know who you are, but a lot of people don't. Dana Nottingham: Dana Nottingham, executive director of the Downtown Development Authority. Chairman Sanchez: All right. Commissioner Winton: And what do you want him to do? Mr. Spring: He needs to read into the record the rollback statement, which is the lead of their BH.5 item. Chairman Sanchez: And this is a discussion item, correct? Commissioner Winton: Well, you need to help him. Mr. Nottingham: You want me to just read it? Mr. Spring: Yes. Mr. Nottingham: OK. Discussion of proposed millage rate and tentative budget for the Downtown Development Authority; percentage increase in millage over rollback rate; response 20 and -- 20.83 percent; specific purpose for which ad valorem tax revenues are being increased; response: Purpose: Downtown Economic Development programs; cost 581, 593, a hundred percent. City Commission listens and responds to citizens' comments -- Commissioner Winton: You don't have to read that. He needs to read that part on the record? We already did that. Mr. Spring: It's a separate authority. We did it for the City, and now you have to do it for -- Mr. Nottingham: Right. This -- Mr. Spring: -- Downtown Development Authority. Commissioner Winton: Since when? We've never done this since I've been here. Chairman Sanchez: Johnny, this is -- Mr. Nottingham: City -- Chairman Sanchez: -- like a workshop; we vote on it next month. City of Miami Page 37 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.6 05-00928a Downtown Development Authority Commissioner Winton: Yeah, but I've been here for six years; have never done this before, so -- Chairman Sanchez: You know, we're getting more professional. Commissioner Winton: More bureaucratic. Go ahead, Dana. Mr. Nottingham: City Commission listens and responds to citizens' comments regarding the proposed millage increase and explains the reasons for the increase over the rolled back rate. Actions by the City Commission: Amend the adopted tentative budget, if necessary; recompute the proposed millage rate, if necessary; publicly announce the percent by which the recomputed proposed millage rate exceeds the rolled back rate; adopt the tentative millage rate; adopt the amended tentative budget. Jorge L. Fernandez (City Attorney): Yes. Chairman Sanchez: All right. Mr. Fernandez: Mr. Chairman, Commissioners, just as you finished doing for the City, you have to do likewise for DDA because they're also a taxing authority, so you have BH.6, which is an ordinance, which you need to pass today on first reading. Then BH.7 is their -- Chairman Sanchez: All right, but before we do that, Mr. City Attorney -- hold on, hold on, hold on -- are there any questions or discussion on the Downtown Development Authority? There is none, correct? All right. ORDINANCE First Reading AN ORDINANCE OF THE MIAMI CITY COMMISSION WITH ATTACHMENT(S), RELATED TO TAXATION, DEFINING AND DESIGNATING THE TERRITORIAL LIMITS OF THE DOWNTOWN DEVELOPMENT DISTRICT OF THE CITY OF MIAMI ("CITY"), FLORIDA; FIXING THE MILLAGE AND LEVYING TAXES IN SAID DOWNTOWN DEVELOPMENT DISTRICT FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, AT FIVE -TENTHS (.5) MILLS ON THE DOLLAR OF NONEXEMPT ASSESSED VALUE OF ALL REAL AND PERSONAL PROPERTY IN SAID DISTRICT; PROVIDING SAID MILLAGE AND THE LEVYING OF TAXES WITHIN THE TERRITORIAL LIMITS OF THE CITY AS REFLECTED IN THE CITY'S MILLAGE LEVY ORDINANCE FOR THE AFORESAID FISCAL YEAR REQUIRED BY CITY CHARTER SECTION 27; PROVIDING THAT THE FIXING OF THE MILLAGE AND THE LEVYING OF TAXES HEREIN SHALL BE IN ADDITION TO SPECIAL ASSESSMENTS; PROVIDING THAT THIS ORDINANCE SHALL NOT BE DEEMED AS REPEALING OR AMENDING ANY OTHER ORDINANCE FIXING MILLAGE OR LEVYING TAXES, BUT SHALL BE DEEMED SUPPLEMENTAL AND IN ADDITION THERETO; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE, AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. 05-00928a Legislation.pdf 05-00928a Exhibit.pdf 05-00928a Summary Form.pdf 05-00928a Previous Legislation 1.pdf 05-00928a Previous Legislation 2.pdf 05-00928a Previous Report.pdf City of Miami Page 38 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Motion by Commissioner Winton, seconded by Vice Chairman Gonzalez, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Winton, Sanchez, Regalado and Allen Chairman Sanchez: Then we move to BH.6, and BH.6 is an ordinance. Jorge L. Fernandez (City Attorney): Correct. Chairman Sanchez: All right. Now, he doesn't need to read all that stuff he already said it. This is the ordinance that's going on on first reading -- Mr. Fernandez: Correct. Chairman Sanchez: -- so -- Commissioner Winton: Move the ordinance. Chairman Sanchez: All right. There's a motion by Commissioner Winton. Is there a second? Vice Chairman Gonzalez: Second. Chairman Sanchez: Second by Vice Chairman Gonzalez. At this time, it is an ordinance on first reading, which requires a public hearing. Anyone from the public wishing to address this item, please step forward and be recognized. Seeing none, hearing none, the public hearing is closed, and it comes back to the Commission. Any further discussion on this item? If not, it is an ordinance on first reading. Mr. City Attorney, read the ordinance into the record, followed by a roll call. Mr. Fernandez: BH.6. The Ordinance was read by title into the public record by the City Attorney. Chairman Sanchez: All right. This is an ordinance on first reading that will require two readings. The next reading will be 9/22, if I'm not mistaken, Madam Clerk, correct? Priscilla A. Thompson (City Clerk): Um -hum. Mr. Fernandez: Correct. Chairman Sanchez: All right. Roll call. Ms. Thompson: Roll call. A roll call was taken, the result of which is stated above. Ms. Thompson: The ordinance has been passed on first reading, 5/0. BH.7 05-00928b RESOLUTION Downtown A RESOLUTION OF THE MIAMI CITY COMMISSION MAKING Development APPROPRIATIONS FROM THE DOWNTOWN DEVELOPMENT DISTRICT AD Authority VALOREM TAX LEVY AND OTHER MISCELLANEOUS INCOME FOR THE DOWNTOWN DEVELOPMENT AUTHORITY (" DDA") OF THE CITY OF MIAMI, FLORIDA ("CITY"), FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006; AUTHORIZING THE DDA TO City of Miami Page 39 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.8 05-00929 General Sanitation Employees Retirement Trust INVITE AND ADVERTISE REQUIRED BIDS; PROVIDING FOR BUDGETARY FLEXIBILITY; PROVIDING THAT THIS RESOLUTION BE DEEMED SUPPLEMENTAL AND IN ADDITION TO THE RESOLUTION MAKING APPROPRIATIONS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, FOR THE OPERATIONS FOR THE CITY. 05-00928b Legislation.pdf 05-00928b Summary Form.pdf 05-00928b Pre Legislation .pdf 05-00928b Pre Legislation 2.pdf DISCUSSED [This item will be considered on September 22, 2005.] Chairman Sanchez: All right. BH.7, it's a resolution and that's the Downtown Authority. Commissioner Winton: So move. Vice Chairman Gonzalez: Second. Jorge L. Fernandez (City Attorney): Well -- Chairman Sanchez: All right. We -- Mr. Fernandez: No, no. Chairman Sanchez: No, we don't take any action on this one. Mr. Fernandez: Correct. You're contemplating this as the appropriation in their budget. You look at it. You look and see if you have any comments. If not, then you defer taking action until the 22nd Chairman Sanchez: All right. Could you read the resolution into the record? Dana Nottingham: Yes. Chairman Sanchez: Thank you. Mr. Nottingham A resolution of the Miami City Commission making appropriations from the Downtown Development District ad valorem tax levy and other miscellaneous income for the Downtown Development Authority of the City ofMiami, Florida, for the fiscal year beginning October 1, 2005, and ending September 30, 2006; authorizing the DDA (Downtown Development Authority) to invite and advertise required bids; providing for budgetary flexibility; providing that this resolution be deemed supplemental and in addition to the resolution making appropriations for the fiscal year beginning October 1, 2005, and ending September 30, 2006, for the operations for the City. Chairman Sanchez: All right. This is a routine action for the DDA. There's just -- any questions or comments from the dais? Hearing none, thank you, sir. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S) APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF MIAMI GENERAL EMPLOYEES' & SANITATION EMPLOYEES' City ofMiami Page 40 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 RETIREMENT TRUST ("GESE RETIREMENT TRUST FUND"), ATTACHED AND INCORPORATED, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, IN THE AMOUNT NOT TO EXCEED $2,640,194, EXCLUDING NORMAL COST, TO PROVIDE FOR THE ADMINISTRATION OF THE GESE RETIREMENT TRUST FUND. 05-00929 Legislation.pdf 05-00929 Exhibit 1.pdf 05-00929 Exhibit 2.pdf 05-00929 Cover Memo.pdf 05-00929 Memo.pdf Motion by Vice Chairman Gonzalez, seconded by Commissioner Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Winton, Sanchez, Regalado and Allen R-05-0539 Chairman Sanchez: We go to BH.8. It is also a resolution. That's the general sanitation employee retirement trust. Hello. Sandra Elenberg: Hello. Good afternoon. My name is Sandra Elenberg. I am the administrator for the City of Miami, General Employees Sanitation Employees and Retirement Trust. We're located at 2901 Bridgeport Avenue, Coconut Grove, Florida 33133. We are here today to present our administrative budget for fiscal year 2005/2006. This budget represents the financial requirements necessary to support an approximate $560 million trust fund which serves approximately 3,470 members. Our total administrative budget is $2, 640,194. Chairman Sanchez: All right. Larry. Larry Spring (Chief Strategic Planning, Budgeting & Performance): Actually, based on my previous presentation, the City is concurring with the recommendation being proffered by the board. That's our -- Chairman Sanchez: We don't take any action now? Mr. Spring: No. Chairman Sanchez: We take it -- Mr. Spring: You would take -- Priscilla A. Thompson (City Clerk): Yes. Mr. Spring: -- you can take action on this item. Chairman Sanchez: We could take action now? Mr. Spring: Yes. Chairman Sanchez: There's a reduction of what, $50, 000? Mr. Spring: Yes. Chairman Sanchez: OK. All right. Any questions on it? It is a public hearing. Anyone from the public wishing to address this item, please step forward to be recognized. Seeing none, City of Miami Page 41 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.9 05-00931 General Sanitation Employees Retirement Trust hearing none, the public hearing is closed, and we bring it back to the Commission. Is there a motion? Vice Chairman Gonzalez: I'll move. Commissioner Allen: I'll second. Chairman Sanchez: There's a motion by Vice Chairman Gonzalez, second by Commissioner Allen. Any discussion on the item? Hearing none, it's a resolution. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. Thank you so much. Ms. Elenberg: Thank you. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S) APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF MIAMI GENERAL EMPLOYEES' & SANITATION EMPLOYEES' EXCESS BENEFIT PLAN ("GESE EXCESS BENEFIT PLAN"), ATTACHED AND INCORPORATED, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, IN THE AMOUNT NOT TO EXCEED $101,039, EXCLUDING THE ACTUARIALLY DETERMINED ANNUAL BENEFIT PAYMENT, TO PROVIDE FOR THE ADMINISTRATION OF THE GESE EXCESS BENEFIT PLAN. 05-00931 Legislation.pdf 05-00931 Exhibit 1.pdf 05-00931 Exhibit 2.pdf 05-00931 Cover Memo.pdf 05-00931 Memo.pdf Motion by Vice Chairman Gonzalez, seconded by Commissioner Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Winton, Sanchez, Regalado and Allen R-05-0540 Chairman Sanchez: All right. BH.9 is a resolution, and that's also from the general sanitation employee retirement trust. Sandra Elenberg: Yes. This budget is for fiscal year ending September 30, 2006, and represents the financial requirements necessary to support an approximate 493,000 trust fund, which serves approximately 31 retirees. The total administrative costs are $101, 039. Chairman Sanchez: All right. Is there a motion? Vice Chairman Gonzalez: Move it. Commissioner Allen: Second. Chairman Sanchez: There's a motion by Vice Chairman Gonzalez, second by Commissioner Allen. It is a public hearing. Anyone from the public wishing to address this item, please step City of Miami Page 42 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.10 05-00760 Department of Fire -Rescue forward and be recognized. Seeing none, hearing none, the public hearing is closed at this time, and it comes back to the Commission. It is a resolution. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. Thank you so much. Ms. Elenberg: Thank you. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), RELATING TO THE PROVISION OF FIRE SERVICES, FACILITIES AND PROGRAMS IN THE CITY OF MIAMI, FLORIDA ("CITY"); IMPOSING FIRE ASSESSMENTS AGAINST ASSESSED PROPERTY LOCATED WITHIN THE CITY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2005; APPROVING THE RATE OF ASSESSMENT; APPROVING THE ASSESSMENT ROLL; AND PROVIDING FOR AN EFFECTIVE DATE. 05-00760 Legislation.pdf 05-00760 Exhibit 1 SUB.pdf 05-00760 Exhibit 2.pdf 05-00760 Exhibit 3.pdf 05-00760 Exhibit 4.pdf 05-00760 Summary Form.pdf 05-00760 Master Report.pdf 05-00760 Previous Legislation.pdf 05-00760 Appendix A.pdf 05-00760 Appendix B.pdf 05-00760 Appendix C.pdf 05-00760 Appendix D.pdf 05-00760 Previous Legislation 2.pdf Version 1 failed on motion by Commissioner Winton, second by Vice Chairman Gonzalez and all five Commissioners voting against the motion. Version 2 was passed and adopted. Motion by Vice Chairman Gonzalez, seconded by Commissioner Winton, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Winton, Sanchez and Allen Noes: 1 - Commissioner Regalado R-05-0548 A motion was made by Commissioner Winton, seconded by Vice Chairman Gonzalez, and failed with all members of the Commission voting against the adoption of item BH.10 as it appeared originally on the agenda as version 1 (with a substitute Exhibit A). A motion was made by Commissioner Allen, seconded by Vice Chairman Gonzalez, and passed unanimously, to reconsider prior vote on the motion to adopt (but failed) BH.10 as it appeared originally on the agenda as version 1. A motion was made by Vice Chairman Gonzalez, seconded by Commissioner Allen, and passed with Commissioner Regalado voting negatively and the remaining four Commissioners voting in favor to direct the administration to study a decrease of the fire assessment fee by 25% and come back with a recommendation. [The Commission agreed to continue consideration of this item to City of Miami Page 43 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Friday, September 9, 2005 at 10 a.m., at which time the Commission passed and adopted item BH.10 as a version 2 with amended Exhibit A.] Chairman Sanchez: All right, BH.10. It's a resolution, Department ofFire-Rescue. We must vote on this today, right? Larry Spring (Chief Strategic Planning, Budgeting & Performance): Yeah, we have to pass this item today. Before you is a resolution establishing our fire assessment. In my presentation, we established that the proposal being proffered by the City is a 10 percent reduction to $55 per household, and the concurrent reductions for the different categories, commercial, industrial, and so forth. Chairman Sanchez: And that's the promise that this legislative body made to the voters of Miami, that we were going to reduce the fire fee and we've done it, just like the promise we made the voters ofMiami, that we were going to keep the fire -- the garbage fee at 325, we've done it. All right, so that's what this resolution clearly says, that it's a reduction of 10 percent from $61 to $55, and that will require two readings, one today and one on the 22nd All right. I believe, right? Isn't this -- Larry, executive director, you need to put that on the record, sir. Maurice Kemp: Maurice Kemp, deputy Fire chief. The attachment in your package is a new one, and it states the rates as Mr. Spring stated: the single-family rate is $55; multifamily, 62, and public housing, 206. That is the lowered rate. Chairman Sanchez: All right. Is there a motion? Commissioner Winton: So moved. Chairman Sanchez: There's a motion by Commissioner Winton. Is there a second? Vice Chairman Gonzalez: Second. Chairman Sanchez: Second by Vice Chairman Gonzalez. It is a public hearing. Anyone from the public wishing to address this item, please come forward and be recognized. Sir, would you like to speak on this item? Manuel Cimadevilla: Yeah. Chairman Sanchez: The fire fee? Mr. Cimadevilla: Yeah. Chairman Sanchez: Yes, sir. Please state your name and address for the -- Mr. Cimadevilla: Manuel Cimadevilla, 1717 North Bayshore Drive, Apartment 1254, Miami, Florida 33132. OK. First of all, the fire fee was adopted in what year? Mr. Kemp: '96/'97. Mr. Cimadevilla: OK. I was here, and remember the commotion. There was a lot of commotion. One of the reasons that they went ahead with it -- and correct me if I'm wrong -- it was because they said five years. It was only going to be in place five years, correct? Commissioner Winton: Correct. Mr. Cimadevilla: It's 2006. I mean 2005 -- City ofMiami Page 44 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: That's new math. It's a joke. Mr. Cimadevilla: -- so either -- I mean, should we call somebody a liar? Because that's what they're doing, they're lying to us. The reason why we shut our mouths and we went home that day is because we said, OK, we'll deal with it for five years. It's 2005. It's a joke, and you know, you have to -- even if you're illiterate, if you understand that, you'll say the same thing, so I don't understand. This is -- either it's plain lie, or you know, it's an illegal situation here as far as what they're collecting. Should the people be refunded for all the years that they have been paying this? Because -- I mean, it's in your taxes, right? They can foreclose on your property. Who's going to say, you know what, it's illegal because five years gone down the drain and we're here in 2005 and we're still paying for this, and what am I going to do? Commissioner Allen: You make a very interesting point. Mr. Cimadevilla: I mean, does anybody have a solution here, because you guys are really the guys that know how to get things done? Commissioner Allen: Well, ifI may, Mr. Chairman. He's making a pretty -- very interesting point. Chairman Sanchez: He is making a good point -- Commissioner Allen: Very interesting point -- Chairman Sanchez: -- and I'm going to address -- Commissioner Allen: -- because that's correct. Chairman Sanchez: -- your -- all right. Are you -- Commissioner Allen? Commissioner Allen: Oh, no, no. I was just commenting. Perhaps, if the assistant chief want to weigh in on it, maybe there's -- you can explain the methodology to the gentleman -- Commissioner Winton: Well -- Commissioner Allen: -- because it was supposed to sunset in five years and -- Commissioner Winton: This isn't rocket science; it's math. Mr. Kemp: My explanation would be that the fire assessment has been reimplemented by the City Commission every year, so at their discretion, they could opt not to, but it has been reimplemented every year. Commissioner Regalado: But -- Mr. Chairman -- Chairman Sanchez: Commissioner Regalado. Commissioner Allen: And there's a basis for it. Commissioner Regalado: -- but -- ifI may, he's right. There was a promise made to the people ofMiami that this would only be for five years, because we needed fires apparatus, and there is a guy over there, Frank Rollason, who was with the Fire Department, Shorty, and you -- Mr. Kemp: Yes, sir. City ofMiami Page 45 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: -- and the City Commission, the City Commission made that commitment. Whether or not has been followed, I don't know. You know, look, I don't want to talk about the fire fee because I'm the one that always voted no on the fire fee because I think it's a regressive tax. I think that we'd rather the people will be better off paying millage and using that to -- for the taxes purposes than the fire fee, but I'll be voting no because even 10 percent is not good enough for me, so I think that it needs to be addressed. I commend my colleagues because now every year this is an issue, and everybody says, you know, we've got to do something and we have to do something. I'm here, the sore thumb here andl know that, but at least now we're talking about every year. I'm opposed since day one, you know, but that's another issue, but just to make the record clear, I was here, I remember. He's right, it was a promise; five years, 20 -- was four million -- at that time, there were $4 million; 20 million we needed apparatus, and then at the first year, we parade the new trucks, remember, ride around the City Hall. This was, I think, '98, or whatever, '99, whatever, but just for the record, he's right. Chairman Sanchez: Commissioner Winton. Do we -- we need to vote on this. We need to vote on this. Commissioner Winton: Not that I want to come to the rescue of the fire fee, because I was in the private sector at the time. We owned an office building downtown and we fought the fire fee tooth and nail, and lost. I have a different hat on today. My different hat is tied to the entire budget. This is nothing but math, and I'm going to -- if Commissioner Regalado wants to go there, I'll be glad to go there because this is math. If one goes down, something else has to go up. If our budget's our budget, if the bottom line's the bottom line, then revenue has to match the expenses. Want to get rid of the fire fee? I'll move a motion today to eliminate the fire fee entirely. Chairman Sanchez: But you've got to increase the -- Commissioner Winton: Commissioner Regalado, I'll make the motion today, remove the fire fee entirely, and then move the millage up, so -- Jorge L. Fernandez (City Attorney): You can't. Chairman Sanchez: You can't. Commissioner Allen: You can't. Mr. Fernandez: You can't move the millage up. Commissioner Regalado: Well, we cannot this year because we voted to cap it, but would tell you something, Johnny -- Commissioner Winton: I don't -- you're the one -- Commissioner Regalado: -- I will follow -- next year, I will follow your lead. I'll second the motion to eliminate completely the fire fee, because the fire fee hurts many people, many people, especially the people that rent. Mr. Cimadevilla: Exactly, exactly. Commissioner Regalado: Especially the people that rent, andl would do that -- Commissioner Winton: So does the millage rate. City of Miami Page 46 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: -- and I would tell you that I would support another measure to increase the millage, if that is what it takes because -- Commissioner Winton: Well, it is what it's going to take. It's not tough math. Chairman Sanchez: All right, all right. Commissioner Winton: I mean -- Chairman Sanchez: Let's -- Commissioner Regalado: I mean -- but you know -- Chairman Sanchez: Let's stay -- Commissioner Regalado: -- by the way, we have 35 more million dollars this year because, thank God, the property appraiser, but you know, we have to think that we need to use that money, but the fire fee is wrong. It's been wrong always. Chairman Sanchez: Ma'am, do you want to speak on the issue? Thank you, sir. Mr. Cimadevilla: Yeah, and l just wanted to say that the fire fee, they just -- it's $69 per unit. Doesn't matter whether you rent in Little Haiti for $250 rental for like a little efficiency, $69, and Chairman Sanchez: Yeah. Mr. Cimadevilla: -- andl have 12. Chairman Sanchez: Let me tell you something, the day that I vote to reduce the fire fee -- and that day will come -- the savings is going to go to the rental, the person who's the tenant who is paying the rent. Mr. Cimadevilla: Exactly. Chairman Sanchez: All right. Mr. Cimadevilla: Exactly. Commissioner Winton: No, it's not. Mr. Cimadevilla: Yeah. Commissioner Winton: You're hallucinating. Chairman Sanchez: Huh? Commissioner Winton: It's going to go to the landlord. Mr. Cimadevilla: Right, but -- Unidentified Speaker: Hello. Mr. Cimadevilla: I have to -- ifI was to raise the rent on my Little Haiti -- City of Miami Page 47 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: You're not going to raise -- Mr. Cimadevilla: -- tenants -- Commissioner Winton: -- the rent; you're going to get it taken away, so you're not going to have to raise the rent. You're going to put the extra money in your pocket. Mr. Cimadevilla: No. I have money now to fix up my property. Chairman Sanchez: All right. Mr. Cimadevilla: Right now there's a lot of repairs I don't do on my property. Why? Because I don't have the money for it. It's simply that. I was making more money five years ago than I was today because of the -- Chairman Sanchez: But, listen -- Mr. Cimadevilla: -- insurance, the appraised values on the property, and the assessment of the fire fee. Chairman Sanchez: Sir, you've made your point and you've made it very well -- Mr. Cimadevilla: Thank you. Chairman Sanchez: -- and I'm glad you've taken time off your busy schedule to be here because you're the only -- Mr. Cimadevilla: Yeah. Chairman Sanchez: -- two individuals that are out here. Mr. Cimadevilla: Yeah, and that's frustrating. Chairman Sanchez: I understand. Mr. Cimadevilla: Regalado is the only person that really has sat next to us and just said, "You know what, it's not fair." Whether there's one person or a whole field of people like there were here when you first got this thing going, you know, he's the only one that said, "You know what, I don't care if there's one or ten, I'm not agreeing to that." Chairman Sanchez: But listen, Commissioner Winton said it, it's all numbers. It is all based on numbers. Mr. Cimadevilla: Don't you have $35 million more because of the assessed values on the properties? Chairman Sanchez: Those 35 millions, believe it or not, are going into infrastructure and probably going into our -- probably into our pensions. Mr. Cimadevilla: So -- I mean, we're always going to do a catch-up game as far as like, you know, trying to divert the money to something that is -- five years is illegal to me when somebody says it's five years, five years. A day more is illegal. It's not the way you spoke here that day. Chairman Sanchez: Thank you, sir. City of Miami Page 48 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Cimadevilla: Thank you. Chairman Sanchez: Ma'am, state your name and address for the record, please. Deborah Cimadevilla-Taylor: My name is Deborah Cimadevilla-Taylor. I am his sister, andl am here representing many people who are extremely frustrated, extremely frustrated because every year we're here and every year it's the same story, and l feel like a broken record, and people tell me why bother; people don't listen. Excuse me, Mr. Winton, I am speaking with you, as well; please listen. Commissioner Winton: Well, I can choose whether I want to listen or not. Ms. Cimadevilla-Taylor: Oh, that says a lot about our public servicemen. Chairman Sanchez: Ma'am. Ms. Cimadevilla-Taylor: OK, fine -- Chairman Sanchez: Let's -- Ms. Cimadevilla-Taylor: -- don't listen, but let me just address your comment. You said that you'll put the money in your pocket. Do you know that in these -- these are 12 apartment buildings that my parents owned; that they've been sweating over the last 40 years. Do you know that they can't afford to pay hurricane insurance for these 12 apartment buildings? If Louisiana, what happened there happens here, it's a complete loss for us. Why can't we afford to pay hurricane insurance? Because our taxes in these -- these are efficiency unit buildings, by the way in lower income places. These taxes went up $50, 000 from last year to this year. We have increased -- Commissioner Winton: (UNINTET,TIGIBT,F) talking about the fire fee. Ms. Cimadevilla-Taylor: No, no, no. Fine. No, we're addressing the fire fee. It is connected, sir, because not only are we slammed with an illegal fee -- basically, a double taxation in my eyes that is illegal, OK, that's $15, 000 extra -- we're slammed with $50, 000 more in taxes. Now, you say, well, how is that related? You know how it's related? That every year it's the same story. It doesn't become a better situation for the people that need a better situation because our tenants need proper housing. Our tenants need clean housing. Our tenants need not just the fire -rescue, as he said, that goes the same service goes to Coconut Grove, or to Cocoplum, the same service we're being charged $69 a unit, OK. Those people deserve a nice place to live, and you know what? They deserve to have hurricane insurance in the building, and we can't afford it, so if the fire -rescue fee, like for example, this building, 14 efficiencies. The tax went up $7, 000 from last year to this year, $7,000. Commissioner Winton: The fire fee tax went up $7, 000? Ms. Cimadevilla-Taylor: No. Chairman Sanchez: No. Ms. Cimadevilla-Taylor: The property tax went up -- Chairman Sanchez: Property tax. Ms. Cimadevilla-Taylor: -- from $11,000 -- City of Miami Page 49 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: Fire fee. Ms. Cimadevilla-Taylor: -- almost 12 to $17, 000, OK, and you know how it's related, sir? That I have to raise at least $50 just to keep the taxes going, and then on top of that, $15, 000 in fire -rescue fee that I have to somehow pay for. I can't afford to pay the hurricane insurance, and this is someone -- these are my parents that administrate their buildings and try to do my best, and it hurts when you have to raise those rents because I have to face those people, not you guys, not you guys, OK. I have to face those people, and they cry to me, and they can't afford to even pay the rent as it is, so we need a relief. We don't need a higher millage rate. We need to cut something here, andl don't know, pensions, pensions, budgets; everybody wants money, but why is it that we, the multifamily unit owners of the lower income housing, are the ones that are overburdened? It is not right, sir, and there has to be another way of cutting the cookie because it's just not right. Chairman Sanchez: Thank you, ma'am. Ms. Cimadevilla-Taylor: Thank you very much, and I'm going to hold you guys to this. I will be here next year by myself, with my brother -- Chairman Sanchez: You're here -- Ms. Cimadevilla-Taylor: -- or with more people. Chairman Sanchez: -- every year that I've been here. Ms. Cimadevilla-Taylor: OK, but you know what, Joe? I remember when you started. You were extremely excited about helping your community. I hear sarcasm in your voice. Chairman Sanchez: No, no, not at all. Ms. Cimadevilla-Taylor: OK. What are you going to do? Are you going to lower -- are you going to remove this fire fee or what? Chairman Sanchez: I have -- Vice Chairman Gonzalez: Yes, we are. Ms. Cimadevilla-Taylor: Or is this just talk? Chairman Sanchez: I have lowered or I have voted to lower the fire fee. Ms. Cimadevilla-Taylor: Not lower, eliminate. Chairman Sanchez: I have voted -- Ms. Cimadevilla-Taylor: It's illegal. Chairman Sanchez: Please, let me respond to you because there's no sarcasm in my voice. Ms. Cimadevilla-Taylor: OK. Chairman Sanchez: I take my job very seriously, and serving my community, I take very seriously. City of Miami Page 50 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Ms. Cimadevilla-Taylor: I know, andl had all my tenants vote for you, so you know. Chairman Sanchez: Would you allow me to -- we're lowering the fire fee. We're lowering the millage. We're maintaining the garbage fee at 325, which is a Cadillac. Ms. Cimadevilla-Taylor: We pay for our own garbage, sir. Chairman Sanchez: All right. Well -- Ms. Cimadevilla-Taylor: We have to pay private service. Chairman Sanchez: -- I will continue to serve you -- Ms. Cimadevilla-Taylor: I want this fire fee -- Chairman Sanchez: -- the best possible way that I can. Ms. Cimadevilla-Taylor: -- gone. Chairman Sanchez: OK. Ms. Cimadevilla-Taylor: This is on public record. You guys are supposed to be honest, and this is an unethical experience. Chairman Sanchez: No, we're not supposed to be honest. I am honest. Ms. Cimadevilla-Taylor: OK. OK. Well -- Chairman Sanchez: Thankyou. Ms. Cimadevilla-Taylor: -- we're not being honest -- Commissioner Winton: Mr. Chairman -- Ms. Cimadevilla-Taylor: -- because this is an illegal fee. Chairman Sanchez: Thankyou. Commissioner Winton: -- how long is this debate going to go? Chairman Sanchez: Thankyou. No, it's done. Thankyou, ma'am. Ms. Cimadevilla-Taylor: This is an illegal fee. Chairman Sanchez: OK. Commissioner Winton: Well, then sue us. Chairman Sanchez: OK. All right. Ms. Cimadevilla-Taylor: What do we need to do? Do we need to come back here -- Chairman Sanchez: Ma'am. Ms. Taylor: -- during the year to work with you guys, is that what we need to do? City of Miami Page 51 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Chairman Sanchez: Thank you, ma'am. Appreciate it. All right. We need to vote on this. It's a resolution. The public hearing is closed at this time. Need a motion. Can I get a motion? Priscilla A. Thompson (City Clerk): You just need a vote. Chairman Sanchez: Huh? Ms. Thompson: You need to vote on -- you have a motion and a second. Chairman Sanchez: Oh, there's a motion and a second already? Ms. Thompson: Yes. Chairman Sanchez: All right. All in favor, say "aye." Vice Chairman Gonzalez: No. Chairman Sanchez: OK. Commissioner Regalado: No. Ms. Thompson: Two nos. Chairman Sanchez: There is two nos. Commissioner Allen, you're voting no? Commissioner Allen: I'm voting no. Chairman Sanchez: OK. The motion dies. Perfect. OK, so -- Vice Chairman Gonzalez: And let me tell you, the reason that I'm voting no -- and I'm going to explain that -- is because I spent, what -- last year, at the budget time, I said that I wanted to see a drastic cut in fire fee this year. Throughout the year, I've been talking to the Budget Director about the same issue over and over and over and over again, and reducing $5, that really to me is an insult, $5. Let's leave it at $65. I mean, you know, $5, and that was the question, Larry, that asked you, and that was the point, exactly the point that this gentleman, this lady has just made is the point that I discussed with you for two hours, you know. We have to -- I don't know what we're going to do. I don't know what we have to do. We have to become creative to find ways to return to the people the monies. I mean, I don't know what we're going to have to do, but we need to do something because there has to be a way that we have -- that we can alleviate the burden on the taxpayers of the City ofMiami, andl know there's some issues, andl told you, you know, it's very good to work for the City ofMiami and make a $100, 000 a year, or maybe even more, and have a huge retirement after 21 years at the expense -- Unidentified Speaker: Exactly. Vice Chairman Gonzalez: -- of the taxpayers. Ms. Cimadevilla-Taylor: Thank you. Vice Chairman Gonzalez: OK. That's the way I feel about it -- Chairman Sanchez: All right. Vice Chairman Gonzalez: -- andl can't support it. City ofMiami Page 52 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Chairman Sanchez: The Clerk -- Vice Chairman Gonzalez: I can't support $5. Chairman Sanchez: All right, fine. The Clerk wants to have a roll call because she needs to know how the vote went, so Madam Clerk, roll call on this. Ms. Thompson: Yes. Roll call, please. Commissioner Regalado? Commissioner Regalado: No. Ms. Thompson: Commissioner Allen? Commissioner Allen: No. Ms. Thompson: Vice Chairman Gonzalez? Vice Chairman Gonzalez: No. Ms. Thompson: Commissioner Winton? Commissioner Winton: No. Ms. Thompson: Chairman Sanchez? Chairman Sanchez: No. Ms. Thompson: Thank you. Chairman Sanchez: All right. Commissioner Regalado: OK. Mr. Spring: Mr. Chair. Commissioner Regalado: So you need to come back with -- Mr. Spring: Mr. Chair, may I, please. First, I need to put on the record that by taking this action, you -- we -- A, I need some direction from the Commission on what they plan for us to do. Without passing this resolution tonight, we will, if you do indeed pass a fire fee of any amount, our cost to issue that assessment to our citizens will increase, because we will no longer be able to make the deadline to put it on the County trim notice. That will increase our cost by $80, 000. I just want you to know that, so if you, you know, want to reconsider the item, I wouldn't -- Chairman Sanchez: No, no, no. Commissioner Regalado: Eighty thousand dollars. Eighty thousand dollars is a good price to pay to give back to the citizens what we promised. Applause Commissioner Regalado: I mean, we -- Mr. Spring: I'm just -- City of Miami Page 53 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: Larry, we spent millions on consultants, so we can spend $80, 000 -- Mr. Spring: Commissioner -- Commissioner Regalado: -- in sending a new trim. Mr. Spring: -- I'm just giving you that information. Commissioner Regalado: No. I mean -- Chairman Sanchez: Listen, what I'm not going to do, as the Chair, is I'm not going to steal from Peter to give to Paul. I'm not going to steal from Peter to give to Paul. Don't come back and say, OK, we're going to raise the garbage; that'll be another promise we broke. Vice Chairman Gonzalez: No. That we can't do because we passed a resolution here to maintain the -- Chairman Sanchez: All right -- Vice Chairman Gonzalez: -- garbage fee -- Chairman Sanchez: -- so perfectly fine. Vice Chairman Gonzalez: -- for five years. Chairman Sanchez: You know, hey -- Commissioner Allen: Right. Chairman Sanchez: -- budget hearing is always like this. It's like we have hurricane season and then we have budget season, so we could deal with it. I've done it for seven years. Commissioner Regalado: Hey, listen -- Mr. Spring: Are you -- Commissioner Regalado: -- we got 35 more million dollars, so we got to figure it out. Mr. Spring: For clari -- Chairman Sanchez: All right. Larry. Mr. Spring: For clarification, Mr. Chair -- Chairman Sanchez: It's going to be a busy month. Mr. Spring: -- for clari -- Chairman Sanchez: -- let's just say that. Mr. Spring: For clarification, are you saying that we will not assess a fire fee? Because we're talking about $13.5 million? Chairman Sanchez: Yes. City of Miami Page 54 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Allen: Yes. Chairman Sanchez: Yes. Commissioner Allen: Correct. That's the -- Chairman Sanchez: No, no, no, no -- Mr. Spring: OK. Chairman Sanchez: -- no, no, no, no. I don't think -- I mean, there's -- we --listen, I take fiscal responsibility as a Commissioner here. I take this very seriously. I mean, we need to look at how -- this shortfall, where it's going to come from. Commissioner Allen: Right. Chairman Sanchez: I'm telling you -- Mr. Spring: As -- Chairman Sanchez: -- I'm not going to vote, as I -- Mr. Spring: OK. Chairman Sanchez: -- stated, I'm not going to take it out of the -- I'm not going to take it out of the garbage. I'm not going to take it out of -- I'm not going to steal from Peter to give to Paul. Mr. Spring: That's fine. I just want to put on the record that if you -- Vice Chairman Gonzalez: And let me tell you -- if you allow me, Mr. Chairman. Chairman Sanchez: Absolutely. Vice Chairman Gonzalez: I will not support the same way that I voted -- I'm voting against this, I will not support to eliminate the fire fee at one shot, because we are talking about a huge development in the City ofMiami, we're talking about don't know how many thousands of units being built in the City ofMiami. There is going to be a need for more equipment, a need to be prepared to service those new residents that are coming to the City, and the ones that we have now, but let me tell you, you have a couple of years to plan the acquisition of equipment and everything that you're going to need in the next three or four years to supplement services for these new units that are coming into the City ofMiami, but eventually, we need to eliminate this fire fee in two or three years. It has to be eliminated. Mr. Spring: And -- Vice Chairman Gonzalez: I mean, they cannot put up with it anymore, andl agree. You know, I agree because I was here, too. I was not a Commissioner, but was part of the public andl -- andMariano was here, andl remember, it was a crisis in the City ofMiami, a fiscal crisis; we were almost in bankruptcy. We had a lot of problems. We didn't had equipment in the Fire Department because prior administrations forgot that we needed to buy trucks, and we needed to buy hoses, and we needed to buy boots and everything for the Fire Department, OK, and it had to be purchased at the time, so it was approved for five years. Commissioner Allen: Right. City ofMiami Page 55 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Vice Chairman Gonzalez: Well, it's going to be 10. Pretty soon it's going to be 10 years, OK. Commissioner Allen: Right. Vice Chairman Gonzalez: So we have to start cutting -- Chairman Sanchez: Seven years, right? Vice Chairman Gonzalez: We have -- we really have to start cutting. I mean, you know, it's like -- that we were arguing. You know, the price of gas has gone up, I don't know, $0.80 a gallon, and there was a discussion in the County to reduce the price of gas by $0.01, come on. Commissioner Allen: Great. Vice Chairman Gonzalez: Come on. Chairman Sanchez: All right. Listen -- Commissioner Allen: Mr. Chairman, could we have the City Attorney -- Chairman Sanchez: Yes, sir, the City Attorney -- Commissioner Allen: -- legal and technical -- Chairman Sanchez: -- and then we're going to -- Commissioner Allen: Right. Chairman Sanchez: -- have the executive director, and then we're moving on to the Solid Waste. Commissioner Allen: Right. Mr. Fernandez: The record needs to be made clear, and both the Administration and my office, we need clear direction from this Commission. You have in fact rejectedBH.10. You voted against the schedule that was given to you. Commissioner Allen: The amended schedule. Mr. Fernandez: Now, that -- implicit in that, I take it from the comments that some Commissioners have made that before or that by September 22, you expect to have another resolution with another schedule further reducing the amounts that have already been reduced from last year, not a total elimination. Commissioner Allen: Right. Chairman Sanchez: Well, actual -- Mr. Fernandez: Is that what I understand to be the direction of the Commission? Vice Chairman Gonzalez: No. Wait a minute. Let me -- because he said a reduction from what was reduced last year. Last year -- Chairman Sanchez: We didn't reduce anything. City of Miami Page 56 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Vice Chairman Gonzalez: -- we didn't reduce a penny. Mr. Fernandez: No, from last year to this year, there has been some reduction. Chairman Sanchez: Yes. Vice Chairman Gonzalez: This is going to be the first reduction. Mr. Fernandez: So you want a greater reduction -- Vice Chairman Gonzalez: Oh, yes, sir. Mr. Fernandez: -- than the one that was proposed here? Commissioner Allen: Right, but if I may, Mr. Chairman, I think the City Attorney's asking what are we directing him to do, either eliminate it totally and/or reduce it. Mr. Fernandez: Correct. That's -- Commissioner Allen: That's the issue. Mr. Fernandez: -- the first thing that I need. Commissioner Allen: Right. Mr. Fernandez: Because a rejection of the item that you just voted 5/0 does not tell us anything. It does not tell us you intend for the Administration to find -- Chairman Sanchez: Well -- Mr. Fernandez: -- $13 million plus -- Commissioner Allen: Dollars some place else. Mr. Fernandez: -- from some other source -- Chairman Sanchez: I would like to sit down with the chief of Fire as quickly as possible and see what this does to their department. I mean, I got to -- I must get real -- no, no, no, no, this can't be done right now. We must sit down and see what this does. You're talking about eliminating the entire amount, if that's what this legislative body wants to do, and we're five Commissioners up here, but I need to know what negative impact it's going to have to the Fire Department, because you know what? At the end of the day, it's the people we serve out there, and you know what? There's people out there that are sick in home that want a good service, and you know what they're going to tell you, `7 don't mind paying that money. I want them to get to my house quick and take care of me." Mr. Fernandez: Mr. Chairman, my concern is sunshine. You are not permitted to communicate with each other through your administration, and so to the extent -- Chairman Sanchez: I'm not communicating -- Mr. Fernandez: -- that each of you -- Chairman Sanchez: -- with the Commissioners. City of Miami Page 57 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Fernandez: No, no, let me -- Chairman Sanchez: I'm -- with the chief of Fire. Mr. Fernandez: Right. Chairman Sanchez: I could sit down with the chief of Fire -- Mr. Fernandez: But you know -- Chairman Sanchez: -- any day of the week and twice on Sunday. Mr. Fernandez: Mr. Chairman, and so will each of your colleagues -- and so that means that all that the Fire chief could do when he sits with each of you is individually explain to you the impact that it would have because none of you will ever know how the other ones are thinking because they are forbidden from communicating to each of you the ideas and thoughts of each other -- Commissioner Winton: We know that. Mr. Fernandez: -- so therefore, before September 22, we are in a quandary. We don't know what to bring to you September 22 because -- Commissioner Regalado: I think -- Mr. Fernandez: -- you only speak with one voice. Commissioner Regalado: IfI may -- Commissioner Allen: Yeah, could l-- Commissioner Regalado: -- Mr. Chairman. Commissioner Allen: -- make a motion? Right. Commissioner Regalado: In order to be fair to Larry and to the Attorney, they need some direction. Mr. Fernandez: Yes. Commissioner Allen: Right. Commissioner Regalado: IfI may, you know, I would introduce a motion to eliminate the fire fee, but that's just me. Chairman Sanchez: And raise the millage. Commissioner Allen: Well -- wait. Commissioner Regalado: Wait a minute. Wait a minute. Wait a minute. Wait a minute. I'm saying that we cannot raise the millage because we cap it. We cannot raise the garbage fee because there is an ordinance that says that in the next five years. That is just me. I would do that. I would probably not even get a second. What the -- Commissioner Winton: OK, I'll second it. City of Miami Page 58 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: -- City Attorney -- Commissioner Winton: Do it; I'll second it. Commissioner Regalado: OK. Well, fine. Commissioner Allen: Well -- Commissioner Winton: Do it. Commissioner Regalado: I'll do it, and you know what my solution is. My solution is, you're dipping into the reserves to pay -- wait a minute. Listen to me, Larry. -- the pension funds. Well, for just one year, until we get our act together and decide it on the next budget, you have to dip into the reserves again to fill the hole of the fire fee, but that's just me. Maybe what the City Attorney wants and Larry needs is for some of you to say, well, come back with, I don't know -- they need to know 50 percent, it's OK because they need to bring it on the 22nd; either that or we have an emergency meeting -- Mr. Fernandez: In between. Commissioner Regalado: -- in between -- Commissioner Allen: Right. Commissioner Regalado: -- to -- Mr. Spring: To address. Commissioner Regalado: -- discuss this item. Commissioner Allen: Right. Commissioner Regalado: In order -- you know, I would suggest -- in fact, you remember, Johnny, when the City was in crisis, we had all these kind of emergency meetings, so it's no problem for me to come here one day next week and have a sunshine meeting with my colleagues. I know that my motion will go nowhere; I'm telling you. If it were me, I'll say, eliminate completely the fire fee, and that's it, and Larry, you have to come back to fill the hole with the reserve of the City ofMiami, but that's just me. Commissioner Allen: Yeah, Mr. Chair -- Mr. Chairman -- Chairman Sanchez: Yes. Commissioner Allen: -- again, it seems like we're in a quandary here. I'd like to make two suggestions. Commissioner Regalado is suggesting a motion whereby we eliminate the fire fee totally, but we have the other option of directing both the City Manager and the City Attorney to come back within a short period of time with a further reduction as it exists to this substitute item, so apparently, we have a choice of either making a motion as to those two items. I would proffer the motion whereby we direct the City Manager and the City Attorney to come back as soon as possible with a further reduction relative to the fire fee. Commissioner Winton: You have to tell him what it is. Chairman Sanchez: But whoa, whoa, whoa, whoa, whoa. City ofMiami Page 59 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: You have to tell him, that's what I'm saying now. Commissioner Winton: You have to tell him now. Chairman Sanchez: Whoa. Look -- Commissioner Regalado: Tell him now, 50 percent, 80 percent. Chairman Sanchez: -- it's very simple. It's very simple. This reduction is $15 million. Where are you going to come up with $15 million? Once you do that, it's -- there's -- the budget is -- it's out of balance. There's no -- it's not a balanced budget -- Commissioner Allen: That's the only -- Chairman Sanchez: -- so here's the bottom line: Where's the money going to come from? Mr. Spring: Mr. Chair -- Chairman Sanchez: Because the only solution would be -- and direct [sic] me if I'm wrong -- is to fire people. Mr. Spring: Yes, because -- Chairman Sanchez: Thank you very much. Mr. Spring: -- we will no longer be structurally balanced. I can't dip in the reserve to cover this hole. I'd have to -- we would have to cut recurring expenses. Chairman Sanchez: No, no, no, no. You would have to fire people, say it. Mr. Spring: Yes, I would. We would have -- Chairman Sanchez: You want to fire people? Mr. Spring: -- to eliminate positions. Commissioner Regalado: But if it takes to do that, yes. Chairman Sanchez: OK. Chairman Sanchez: Then make the motion. Commissioner Regalado: Look, it's very simple. You guys voted to reject this. My vote has been consistent for seven years, you know. I always vote -- Commissioner Winton: I thought you voted to put it in place. Commissioner Regalado: I'm sorry? Commissioner Winton: Didn't you vote to put it in place? Commissioner Regalado: No, I did not. No. Go back to the record. I fought with Carlos Gimenez when he was -- City of Miami Page 60 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: So, you were opposed to it even when it got here? Commissioner Regalado: Yeah. Commissioner Winton: Oh, good. Commissioner Regalado: Yeah, yeah, yeah, and you know, I said -- you know, Carlos was the Fire chief at that time; he may remember that I fought with him because he figured it out, and he was the one that came with the idea, but you know what? I don't want to put my colleagues in a very difficult position. Vice Chairman Gonzalez: Can I propose -- Commissioner Allen: OK. Yeah. Commissioner Regalado: I'm the one that has been always vehemently against the fire fee. I don't want this Commission to be aligned with my passion. I would rather have other members do the motion for some people. You have to tell -- but you have to tell the City Attorney -- Commissioner Allen: Right. Mr. Chairman -- Commissioner Regalado: -- and the Manager -- Chairman Sanchez: Hold on. Commissioner Winton, you're prepared to second the motion, correct? Commissioner Winton: If he makes the motion, I'm going to second it. Commissioner Allen: Well, how about a motion for reconsideration of the previous -- I mean, of what we just did? Based on hearing the analysis from the City Attorney and Larry Spring, I'll -- Vice Chairman Gonzalez: But before -- Commissioner Allen: -- a motion for reconsideration -- Vice Chairman Gonzalez: Before we -- Commissioner Allen: -- that the vote, which is to -- Vice Chairman Gonzalez: If you allow me. Commissioner Allen: Sure. Vice Chairman Gonzalez: Before we go into a motion to reconsider the prior vote -- Mr. Fernandez: Correct. Vice Chairman Gonzalez: -- can we explore the possibility of 25 percent reduction in the fire fee? Chairman Sanchez: No (INAUDIBLE). Vice Chairman Gonzalez: That's substantial, 25 percent. Instead of 10 percent, 25 percent. Twenty five percent will take us into the next -- and maybe next Year, we can do better. City of Miami Page 61 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Allen: OK. Chairman Sanchez: That still leaves us -- Commissioner Allen: Structurally -- Chairman Sanchez: -- structurally unbalanced. Commissioner Allen: -- unbalanced, right, yeah. Mr. Spring: You're probably talking about in the area of -- Chairman Sanchez: An additional seven million. Mr. Spring: No, no, no. Commissioner Winton: No. Mr. Spring: About $5 million -- Chairman Sanchez: Five million. Mr. Spring: -- and based on my last check, I -- Commissioner Winton: I thought it was 15 -- Mr. Spring: -- we were still -- no. The re -- Commissioner Winton: I thought it was 15 million. Mr. Spring: No, 20 -- Commissioner Winton: Didn't you say -- what's the amount collected on the fire fee? Chairman Sanchez: Fifteen million, total. Mr. Fernandez: No, 15, 1/5. Vice Chairman Gonzalez: One/five. Chairman Sanchez: Yes, 15. Unidentified Speaker: One/five. Commissioner Winton: Yeah, 1/5. Five. Chairman Sanchez: One/five, 15. Mr. Spring: And you're talking about four -- close to $4 million -- Commissioner Winton: That's what I -- that's a little better math there. Thank you. Mr. Spring: -- but it -- remember, I'm doing 25 percent on the total fee. We reduced the lead fee, which is the residential household fee, and that infects all of the other -- City of Miami Page 62 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: No. I under -- Mr. Spring: -- the other fee. Commissioner Winton: We understand that. Mr. Spring: They're relative to each other -- Chairman Sanchez: But -- Commissioner Winton: Yeah. Mr. Spring: -- and we provide -- Chairman Sanchez: -- excuse me, sir. Excuse me. You could change that structure. Now -- Mr. Spring: No, I can't. Chairman Sanchez: -- you could -- Mr. Spring: I cannot change the relative -- the relationship to the -- Commissioner Winton: No, you cannot. Mr. Spring: -- household to the commercial; I cannot change that. Mr. Fernandez: That is established in the ordinance -- Mr. Spring: Yes. Mr. Fernandez: -- so as long as you have an ordinance imposing the assessment, you have to observe the structure of the ordinance. Chairman Sanchez: All right. Commissioner Allen: Accordingly. Mr. Fernandez: It's up to this Commission to instruct us by what percentage greater than the one that has already been applied -- Chairman Sanchez: Larry. Mr. Fernandez: -- you want it across-the-board. Chairman Sanchez: -- I think the most reasonable thing -- and I've got to take control of this Commission -- is that what the Vice Chairman suggested; that you look into it. We still got time. We could have as many emergency meetings you want -- Commissioner Winton: No, we can't. Chairman Sanchez: -- on this issue. Well, neither -- I don't want to, but it's going to take another emergency meeting, unless they're able to come up with the balance before the 22nd, if I'm not mistaken, so what we could do is we could make a motion to reconsider -- Mr. Fernandez: Correct. City of Miami Page 63 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Chairman Sanchez: -- and then make a motion for the 25 percent. Commissioner Allen: Reduction. Chairman Sanchez: That gives you guidance -- Mr. Fernandez: Exactly. Chairman Sanchez: -- to go out and see where -- but don't steal from Peter to give to Paul. Mr. Spring: Again, Commissioner, I'll have to say, because this is a recurring revenue source, I'm going to have to cut recurring expenses -- Commissioner Allen: Going forward Chairman Sanchez: So, you're going to have to come up with a -- Mr. Spring: -- in order to maintain my structurally balanced budget. Chairman Sanchez: The math is simple here, Larry. Commissioner Winton: Wait, wait, wait. Chairman Sanchez: The math is simple. You need to come up with $4 million. Mr. Spring: Yeah, the math -- Commissioner Winton: But by the way, what we need to do is look very closely at all the revenue assumptions then -- Commissioner Allen: Right. Commissioner Winton: -- because every year, we go through budget time and the revenue is always higher than we projected, so if you look at the assumptions, there's probably some money in there. Chairman Sanchez: All right, so let's do that. Commissioner Winton: It's probably a combination of cutting -- structural cutting -- Vice Chairman Gonzalez: You're right. Commissioner Winton: -- and some additional revenues. Vice Chairman Gonzalez: You're right. Chairman Sanchez: That does not affect the level of service. Commissioner Winton: It's going to affect the level of service, what you talking about? Vice Chairman Gonzalez: It won't affect the level of service. Chairman Sanchez: All right. Listen, let's do something. Let's stay in order here. Let's go ahead. We have a motion to reconsider. I think the motion to reconsider -- there's -- the motion City of Miami Page 64 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Vice Chairman Gonzalez: Was Commissioner -- Chairman Sanchez: -- made by Commissioner Allen. Commissioner Allen: Yeah. I make a motion to re -- Vice Chairman Gonzalez: I'll second the motion. Chairman Sanchez: Second by Vice Chairman Gonzalez. That's a motion to reconsider, all right. Mr. Fernandez: Your previous vote. Commissioner Regalado: But you know -- Chairman Sanchez: Yes, the previous vote. Commissioner Allen: The previous vote. Commissioner Regalado: -- you don't need a motion to reconsider. Chairman Sanchez: Yes, you do. Mr. Fernandez: Yes, you do. Commissioner Allen: Yes, you do. Chairman Sanchez: Yes, you do. Commissioner Regalado: Why? We just rejected the 10 percent. What he's proposing is a 25 percent. Why do we need to go back and say we want to reconsider the 10 percent, so we don't want the 10 percent. We do not need a motion. Chairman Sanchez: It provides a clearer -- Commissioner Regalado: Well, whatever you want to do. Chairman Sanchez: -- record. Mr. Fernandez: Well, that's right, and then by doing so, the clearer message the Commission is sending is that you're not getting rid of the assessment altogether; you're just directing us to come to you with a greater percentage -- Chairman Sanchez: Right. Mr. Fernandez: -- and then you can let your previous vote stand -- Unidentified Speaker: All right. Mr. Fernandez: -- without needing to reconsider it. Chairman Sanchez: There's a motion and a second on the table. All in favor, say "aye." City of Miami Page 65 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Ms. Thompson: I'm -- Commissioner Winton: What's the motion? Chairman Sanchez: Anyone in opposition, having the -- Commissioner Winton: Wait, wait, wait. Commissioner Regalado: To reconsider. Commissioner Winton: What's the motion? Chairman Sanchez: To reconsider. Commissioner Winton: Oh, I see. I'm sorry. I'm sorry. Ms. Thompson: IfI might, Chair. You made a motion and you denied accepting that resolution. Chairman Sanchez: Right. Ms. Thompson: The resolution had attachments to it. That's what you were voting on. That part died. If you want -- if my opinion, if you want to use another percentage, you just need to introduce -- Commissioner Winton: A new resolution. Ms. Thompson: -- a new resolution. Commissioner Allen: OK. Ms. Thompson: A new attachment. Mr. Fernandez: Yes. It's either/or. Commissioner Allen: Right. Ms. Thompson: You don't -- Chairman Sanchez: Ma'am -- Vice Chairman Gonzalez: All right. Chairman Sanchez: -- I never argue with you, OK. Commissioner Allen: Then I make a motion -- Vice Chairman Gonzalez: All right. Chairman Sanchez: If that's the fact, then I'll move to come up with a decrease of 25 percent. Chairman Sanchez: There's a motion -- Vice Chairman Gonzalez: -- on the fire fee. Chairman Sanchez: -- by Vice Chairman Gonzalez, second by Commissioner Allen. City of Miami Page 66 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Allen: Second, yes. Chairman Sanchez: OK. Now, give me a roll call, Madam Clerk. Mr. Fernandez: Mr. Chairman, but before you take that roll vote, you want to know the impact that that will have, so you're not taking a final vote on this portion of the budget. By doing this motion, you're saying -- Chairman Sanchez: This is just giving guidance to the executive director. Mr. Fernandez: Correct. Exactly, so the record is clear on that. Chairman Sanchez: All right, the record is clear. Madam Clerk, roll call. Ms. Thompson: And this is a direction. Chairman Sanchez: Yes. Ms. Thompson: OK. It's not a resolution. Chairman Sanchez: Si. Ms. Thompson: It's a direction to. Chairman Sanchez: Oui, oui. Ms. Thompson: Thank you. Commissioner Winton: Aye. Ms. Thompson: Commissioner Allen? Commissioner Allen: Aye. Ms. Thompson: Commissioner Regalado? Commissioner Regalado: No. Ms. Thompson: Vice Chairman Gonzalez? Vice Chairman Gonzalez: Yes, ma'am. Ms. Thompson: Commissioner Winton? Commissioner Winton: Yes. Ms. Thompson: Chairman Sanchez? Chairman Sanchez: Yes. Ms. Thompson: Thank you. Mr. Fernandez: So, now, there is -- do you still consider there is a need for another meeting before the 22nd or would it suffice for us to come back to you on the 22nd? City of Miami Page 67 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Spring: May I -- Chairman Sanchez: Well, if Larry could sharpen up that pencil of his -- Mr. Spring: The pencil is being sharpened right now, Mr. Chair. Actually, if you want, because we do need time to come back, I would ask, so that we can still make our deadline with the County, that you have a meeting tomorrow for us to consider -- Chairman Sanchez: Why would you do that to us? Is that a payback? Mr. Spring: It's not a payback. I'm trying to facilitate good government with the rest of the staff so I'm going to be working on this tonight with my staff over there. Chairman Sanchez: And my staff will be here tomorrow. Mr. Spring: OK. Vice Chairman Gonzalez: And mine. Commissioner Allen: So -- Chairman Sanchez: All right. Moving right along. Vice Chairman Gonzalez: Tomorrow, what time? Commissioner Allen: What was advised, a meeting tomorrow? Chairman Sanchez: Be -- you -- Mr. Spring: They called -- have a call meeting tomorrow. Chairman Sanchez: OK. Commissioner Allen: With all Commissioners. Mr. Spring: Can you continue the meeting? Chairman Sanchez: Yeah, we can continue the meeting. This isn't -- this is just one item. Mr. Fernandez: Yes. Chairman Sanchez: All right, BH (budget hearing) -- Commissioner Regalado: Tomorrow, what time? Chairman Sanchez: Tomorrow, what time, Larry? Commissioner Allen: That gives you ample time? That gives you ample time? Mr. Spring: Yeah, it will give me ample time. Say 2 o'clock tomorrow afternoon. Chairman Sanchez: 2 o'clock is fine. Commissioner Allen: OK. City of Miami Page 68 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: No. Chairman Sanchez: All right. BH.11, that's the Solid Waste fee. Mr. Fernandez: So, before you adjourn tonight, instead of adjourning, you have to -- Ms. Thompson: Recess. Mr. Fernandez: -- continue the meeting to tomorrow so that it's the same meeting that's being continued. Commissioner Winton: I'm not available at 2. Commissioner Regalado: In the morning? Commissioner Winton: I'm available -- I could be here -- because we have a DDA (Downtown Development Authority) board meeting at 8: 30, so I could be here by 10. Vice Chairman Gonzalez: 11 -- 10. Commissioner Regalado: 10, fine. Commissioner Winton: Be here by 10. Commissioner Regalado: 10. Vice Chairman Gonzalez: What about 10 o'clock tomorrow? Chairman Sanchez: No, I'm OK. I could be here tomorrow, 2. Commissioner Regalado: 10. Mr. Fernandez: So you don't sleep. Mr. Spring: I will stay up all night, Commissioner -- Commissioner Allen: That gives you ample time? Mr. Spring: -- to make it happen. Commissioner Regalado: He needs 10. Commissioner Allen: Go get some NoDoz. Chairman Sanchez: 10 in the morning? Vice Chairman Gonzalez: Yeah, because actually -- Commissioner Winton: Yeah. I can't be here -- Vice Chairman Gonzalez: -- we need the full Commission. Commissioner Winton: -- at 2. City of Miami Page 69 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Spring: Yeah. If 10 o'clock is the time, I'll -- we'll stay up and get it done. Commissioner Allen: Right, and this requires a full Commission. Commissioner Winton: Well, it could -- Mr. Fernandez: Yes. Commissioner Winton: -- be a little later. I could come -- it could be at -- I just have to be -- I have a meeting at 2 that I cannot get out of. Chairman Sanchez: All right, 10 o'clock tomorrow, how's that? Mr. Spring: That's fine. Commissioner Regalado: 10 o'clock. Chairman Sanchez: All right, 10 o'clock tomorrow. Chairman Sanchez: -- (INAUDIBT,F) Miami Commission meeting budget hearing is back in order. It was in recess yesterday, and it's back in order today, andl believe the item that we were addressing today is BH.10, which it pertains to the fire fee, and what we'll do is we'll go ahead and pass it over to the Vice Chair, who was the one that debated the item, and therefore, Mr. Vice Chairman, you are recognized. Vice Chairman Gonzalez: Thank you, Mr. Chairman. Last night, after the meeting, I met with Larry, and this morning, we met again, I met with the Administration, and we came to the conclusion that, yes, we're going to go with the 25 percent cut this year, and the promise of continuing to do cuts every year until we do away with the fire fee. You know, we -- at least we're doing something. We not only cut -- starting to cut the fire fee, but we're cutting the taxes. We're going to be doing the same thing next year, and the following year, and the following year, so -- and at the same time, we're working on the resolution that the Mayor proposed yesterday to go to the County and go to the state and try to find a relief on the taxpayers of the City ofMiami and the Dade County. Chairman Sanchez: All right. Why don't we just -- Vice Chairman Gonzalez: So my motion is for a 25 percent reduction on the fire fee for this year. Commissioner Winton: Second. Commissioner Allen: With -- Chairman Sanchez: OK. Commissioner Allen: -- second, but with an ultimate phase out. Chairman Sanchez: Excuse me. Vice Chairman Gonzalez: Yes, sir. Commissioner Allen: With an ultimate phase out. Chairman Sanchez: Listen, let's try to -- we could get out of here pretty quick if we maintain order here, OK. There is a motion on the floor for a 25 -- City ofMiami Page 70 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: Andl seconded it. Chairman Sanchez: -- percent reduction. There is a second. The motion is made by Vice Chairman Gonzalez, second by Commissioner Winton, for the purpose of discussion. Before we open it up for discussion, it requires a public hearing. Is there anyone from the public wishing to address this item? Please step forward and be recognized. Ed Pidermann: Ed Pidermann, Miami Association of Firefighters. I wanted to get a little bit of information, I guess, from Mr. Spring on where those cuts would be coming from, andl don't have any problem with the cuts, except for the fact -- andl think a lot of -- was spoken about yesterday, the history of the fire fee, that it was initially created because of the condition of the fire trucks and the stations in the Fire Department. They were in complete disarray. The trucks were old, they were broken down, and the fire fee was created during the financial crisis to bring the capital items in the Fire Department back to a respectable level. The initial fire fee was charged at $24, was the base amount, and that created, or that derived $4.2 million in revenue that was used exclusively for use for capital items in the Fire Department. Now, as the years progressed after that, the dollar amount continued to increase, and amounts were tagged on, and the Fire Department still maintained the allocation of $4.2 million for capital, which obviously, in the year 2005, $4.2 million doesn't buy you the same as it did in '96, but so be it. Two point four million dollars would continue to be allocated for capital items in the Fire Department. Now, as this fire fee is reduced, what's going to be done, or where is the capital money going to come to maintain the fleet, to be able to respond in a timely manner to residents, and obviously, to maintain the facilities in the Fire Department at a respectable level? Chairman Sanchez: City Manager. Commissioner Allen: Right. Joe Arriola (City Manager): You know, obviously, we just came up with that, so I don't have an answer, to be very honest with you. I spoke to -- Chairman Sanchez: Thankyou. Thankyou, sir. Mr. Arriola: -- some of you since then, andl don't have an answer. Chairman Sanchez: Commissioner Allen. Commissioner Allen: Well, let me ask you -- at the current level, is that enough funding to handle the capacity of what's taking place? In other words, you do now have current capital equipment, correct? At the current funding level, correct? Mr. Pidermann: The specifics of the capital replacement program would probably be better answered by the Fire Department. They have the specific detail about that, butt know for sure that 4.2 is what we started with in 96/97 -- Commissioner Allen: Right. Mr. Pidermann: -- and it's what -- Commissioner Allen: And that brought you up to -- Mr. Pidermann: And for sure, we can do with no less. We can probably do with more because 4.2 doesn't buy you the same in 2005, as it did in '96 or '97. City of Miami Page 71 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Allen: OK, so that goes to a question of the useful life of these capital items that you're speaking of. That's -- I mean maybe -- Commissioner Winton: No, it doesn't. I think the -- Commissioner Allen: I -- Commissioner Winton: -- answer is that if you -- the fire fee generates roughly $15 million a year. You're going to take 3.75 million away, and this movement, you're going to have 11 -- over $11 million a year less, so that's more than two times the capital requirement that he -- Commissioner Allen: Yeah, that's -- Commissioner Winton: -- just put on the -- Commissioner Allen: -- right. Commissioner Winton: -- record. Commissioner Allen: That's what it amounts to. That's what I'm getting at, so it appears to me that you could still function in a decent capacity, correct? I don't know. Larry Spring (Chief Strategic Planning, Budgeting, and Performance): Commissioners -- Mr. Arriola: The other thing -- Commissioner Allen: Explain this to me. Mr. Arriola: -- that you have to remember, because I don't recall who, one of the Commissioners talk about adding more fire. As our city grows, they're going to need more equipment. I mean -- Commissioner Winton: That's correct. Mr. Arriola: -- I'm going to work with whatever you guys give me, you know that. That's no buts or maybes. If we are going to put more fire folks on the payroll, they're going to need equipment Mr. Pidermann: Absolutely. I agree with that. Mr. Arriola: -- so that's a decision you guys -- again, I'm going to do whatever you tell me, and I'm going to work with whatever you tell me, but remember, if you're asking for more firefighters -- which I'm definitely not against. I'm all in favor for. -- you also have to equip these firefighters, and you should think about how you're going to equip these firefighters if you're now cutting the capital because it's not a matter of maintenance. Even with the maintenance, you're not going to get where you want to be if you hire more people. Am I correct? Mr. Pidermann: Absolutely. Even the 4.2 may not be enough, in today's dollars, to maintain the current level of staffing and the current level of apparatus that we have, so -- Commissioner Winton: Let me (UNINTELLIGIBLE) this. We put -- we still have 11 million plus left on the table after we make this move. Commissioner Allen: That's what I -- that's what -- City of Miami Page 72 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Pidermann: Perfect. Commissioner Allen: -- and if you could reconcile that with the fact that we did, several months ago, pass -- we're accepting a grant to hire additional firefighters, am I correct? Mr. Spring: We're not accepting. We -- you approved us to apply. Commissioner Allen: Apply for the grant. Mr. Spring: We'll find out what the results are in the next 30 days or so, and that grant is for personnel costs -- Commissioner Allen: Personnel, correct, right. Mr. Spring: -- not equipment. Commissioner Allen: No, I know. I know it's for personnel, but it's going to absorb "X" amount of new firefighters, arguably, right? Mr. Spring: No, no, no, no. What that -- the nature of that grant is similar to the COPS (Community Oriented Policing Services) MORE (Making Officer Redeployment Effective) Grant. The City will make a commitment to increase its total level of firefighters, based on receiving the grant, and then, after the grant runs out, we have a commitment to keep -- Commissioner Allen: To continue -- Mr. Spring: -- that additional head count -- Commissioner Allen: Head count. Mr. Spring: -- on our books for at least a year, or some time frame after the grant expires, so it's -- we're increasing our head count. It's not -- it is not supplanting what we already have. Commissioner Allen: All right, so -- Vice Chairman Gonzalez: All right. Commissioner Allen: -- we're really not in a quandary here, to be honest with you because if you say we have at least about 11 million remaining -- Chairman Sanchez: Well, we're still in the public hearing, if you want to listen -- Commissioner Allen: Oh, I'm sorry. Chairman Sanchez: -- to everyone from the public -- Commissioner Allen: Yeah. Chairman Sanchez: -- and then we'll bring it back, and we'll -- Commissioner Allen: OK. Chairman Sanchez: -- debate it. Mr. Pidermann: Yeah, I just wanted to finish off by saying my concern is that the capital needs City of Miami Page 73 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 of the Fire Department are met. I don't really care where they come from. If it comes from fire fee money, if it comes from reallocation of some of the Homeland Defense bond money from other projects toward the fire capital needs, I don't really care where it comes from. My concern is for the safety of the firefighters, to ensure that they're being able to respond and properly maintain and equip fire trucks. Also, for the residents, that those fire trucks that are going actually get there in time because they don't break down and so forth, so that is my concern. Where the money comes from to meet those capital needs is irrelevant to me. Vice Chairman Gonzalez: Mr. Chairman. Chairman Sanchez: Yes, sir. Vice Chairman Gonzalez: The only thing is that, you know, we have to start streamlining the expenses in the City because, you know, as the president of the union, I know that you have to advocate for the union, for the firefighters, for the trucks, andl have been probably the strongest supporter of the Fire Department in this Commission, but you also have to realize and hear the outcry of the people of the City ofMiami that can't continue to pay the taxes and the fees that were imposed to them, I don't know how many years ago, when the City was in crisis. We're not in crisis any longer, and you have to start doing some planning. You have to start doing some planning. We're going to have to start to learn how to live with what we have, but it cannot be at the expense of the taxpayers of the City ofMiami because we have a huge problem. We have an enormous development in the City ofMiami going on, and every -- the income that is coming in in one hand is going out on the other one. Eventually, if we continue to go the route that we're going, with the expenditures and money that we have, we're going to go back to 1997, maybe in four years, maybe in five years, and then there won't be trucks, and then there won't be the huge pensions, and that -- you know, that's an area that we need to work on. We need to start controlling the system because, let me tell you, it's not fair to the taxpayers of the City ofMiami. It's not fair. There are people out there that are losing their homes, senior citizens that are losing their homes. With the tax valuation that is going on, people can't afford to pay taxes. People -- I don't know if you realize that there are senior citizens -- because, you know, you make it -- a huge salary, you make a great salary, OK. A lot of people here make great salaries, but I don't know if you know that there are retired couples out there that all they're making is $700 a month, and with that they have to pay taxes. They have to pay water; they have to pay sewer; they have to pay insurance; they have to pay everything in order to survive, and they are losing their homes. You know, you have to step into the world. I mean, you have to come down from here. Go down to the level of the people of the City ofMiami. We can't continue to work the way that we're going because, let me tell you, I had this discussion with Larry for about three hours in my office last week. I spoke to the Manager. I spoke to the Mayor about this issue. The way that we're going, no working class is going to be able to afford to live in the City ofMiami. It's going to be a city for the rich, but not for the working class, unless we find a piece of land somewhere where we can move all the working class of the City ofMiami, and all the poor, and put them in there, and then bring them in to work, and then send them back to their place. I mean, it can't continue like that, andl will support the Fire Department, I will support your needs, but we have to have a little bit of conscience -- Commissioner Allen: A balance. Vice Chairman Gonzalez: -- a little bit of conscience and balance on the needs of the people and the taxpayers of the City ofMiami that, after all, after all, are the ones that pay all of our salaries, are the ones that pay all of our expenses, and are the ones that support the City of Miami, you know. We have to -- you made compromises back in 1997, and you were conscious enough to work with the City, and to try to save the City ofMiami. We have to make an effort. Everyone has to make an effort to live with what we have, and to really plan for the future. Otherwise, I'll tell you, with -- it's going to be said, but after all of the development, after all of the new investments and everything that is being done in the City, we're going to go back to the City ofMiami Page 74 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 same situation of 1997. Commissioner Allen: Right. Mr. Chairman, if I may, in light of what the Vice Chairman has proffered, 25 percent reduction per year, with an ultimate phase out, can we have Mr. Spring to come -- Chairman Sanchez: All right. Could -- Commissioner Allen: Oh, I'm sorry. Chairman Sanchez: -- can I do something? Is the public hearing closed at this time? Is there anyone else wishing to speak on this item? Seeing none, hearing none, the public hearing is closed, coming back to the Commission. Commissioner Allen, you're recognized, and -- Commissioner Allen: Yes, sir. Chairman Sanchez: -- Commissioner Regalado, you will be recognized. Commissioner Allen: Yes, sir, Mr. Chairman, just to reiterate, considering what the Vice Chairman has proffered, 25 percent reduction per year, with an ultimate phase out, if we can have Mr. Spring come forward and give us some of those assumptions relative to the Vice Chairman's proffer of 25 percent reduction, so I can have some idea on -- Mr. Spring: Pretty much -- Commissioner Allen: -- the numbers. Mr. Spring: -- as I put on the record last night, and we got the exact number, a 25 percent reduction amounts to about $3.7 million reduction in the total fee -- Commissioner Allen: Correct. Mr. Spring: -- from where it's at right now -- Commissioner Allen: Correct. Mr. Spring: -- so that's the -- Commissioner Allen: That's where it -- right. Fine. Chairman Sanchez: All right. Commissioner Allen: Nothing more. Chairman Sanchez: Commissioner Allen, does that answer your question, sir? Commissioner Allen: Yeah, that answers -- I'm ready to -- Chairman Sanchez: Commissioner Regalado, you're recognized. Commissioner Regalado: Thank you very much, Mr. Chairman. Larry, ifI can ask you a question? I had the opportunity of talking to you, and -- you've always been very informative, and let me ask you, this year, because of property values going up, we had, I think, 37 more million dollar. City of Miami Page 75 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Spring: Yeah, the gross per the DR-420 was 37 million; with the discount, collection discount, we put in our budget 33.6. Commissioner Regalado: 33.6. Mr. Spring: Yeah. Commissioner Regalado: Those -- I've seen raises in the different department, and I think they make sense, but that does -- is that makes for the $33 million, all the raises in the budgets of all departments? Mr. Spring: I mean, it is -- I mean, the use of those dollars is a culmination of things. You have the impact of the salary increases. You have the impact of the additional personnel. You have the impact of the service level increases that were provided for in Public Works, which is additional contracting and people. You also have an increase in your pension contribution this year, $8 million, so you know, the ERP (Enterprise Resource Program) -- in completing the ERP, which is, you know, about halfway done, the land management system, contributions to all of those things that are differentfrom this year all ate up that -- Commissioner Regalado: So -- Mr. Spring: -- $33.6 million. Commissioner Regalado: -- all of that add -- Mr. Arriola: Commissioner -- Commissioner Regalado: -- to 30 -- Mr. Arriola: -- you also have a decrease in the use tax. (UNINTELLIGIBLE) Mr. Spring: Yeah, your -- Mr. Arriola: Gas sales tax. Mr. Spring: -- utility service taxes have gone down by $3.7 million. Commissioner Allen: Because of the bundling? Mr. Spring: Yeah. Commissioner Allen: The bundling, right? Mr. Spring: Yeah. Commissioner Regalado: So what you presented to us yesterday and the days before, the complete budget, it's -- you used all these $33 million? Mr. Spring: Yes, sir. Commissioner Regalado: OK, so where did you make cuts to reduce $3.7 million? Mr. Spring: Well, we looked -- we went back and took a look -- based on a suggestion last night, we took a look at some of the revenues that we have, so there's some tweaking that we'll do there. We're also going to probably have to cut back on some of the professional service fees in City of Miami Page 76 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 different areas of the City. You know, this is not going to be a cut that is borne by the Fire Department solely. You know, that would not be fair, so I'm scouring through every single department to come up with a little here, a little there to get to that number. Commissioner Allen: Sort the cost out by averaging over the -- Mr. Spring: Right. Commissioner Allen: Right. Mr. Spring: To average across the City, even though the fire fee goes completely to, you know, the Fire Department and their capital. Commissioner Regalado: So, you would say that this reduction of 15 percent more of what was presented is not the end of the world? Mr. Spring: It's not the end of the world. Commissioner Regalado: OK. Mr. Spring: We're still here. Commissioner Regalado: Exactly, that is my point. Yesterday, when Tom Gabriel was speaking before the Commission last night on the pension plan -- and this is the concern of all the members of the Commission, the Manager, you, the Mayor, and everyone -- I asked him about class action suit, and he said on the record that they are part of several class action suit, and one of them they initiated by themselves [sic]. If you follow the financial news, you will find that the big brokerage firms, rather than go to court, are settling with some of the people that are suing them because of bad advice after 9/11. This is millions of millions of dollars of settlement. As of now, we have more than 10 to 15 huge settlement, so it is expected that these people will get some money back, andl hope that we will be able to follow, because what he said was all good news. I mean, we're doing great, we're doing great, we're doing great, but you guys didn't do for us in the past, but what I'm saying is that we should look closely at the movement in the court system because these mutual funds that they -- or these money managers are going to settle with them, as they do with other people. Mr. Spring: Right. Mr. Arriola: Commissioner, I have a little bit of expertise on that, andl agree with you because I'm involved in a couple of them myself. The one thing you have to be conscious of that most of the big cases that you're talking about settling is when pension funds have invested within their own corporations. That was the case of Exxon. That was the case of major corporation. If there is a bad investment in their plan -- and I've looked at their plan -- I, like Tom Gabriel, and I'm sure Mr. Pidermann, there are some questions in there, but don't put all your, you know, eggs in that basket because, at the end of the day, unfortunately, they probably have a good (UNINTELLIGIBLE) -- they didn't invest in any Exxons. They didn't invest in any high -risk stuff. There's some stuff that I would have not invested on, but they're very, very marginal, and I don't want to give anybody hope that that lawsuit could be -- and every major lawsuit you've seen is from insider, people that bought stock within their own company, people that invested the pension funds into very, very risky things. I don't think that's the case of their case. Questionable, you know, when you lose $300 million, there's a lot of questions on it -- Commissioner Regalado: No, but, Joe -- Mr. Arriola: -- but you know what I'm saying? It's not a clear-cut, that's what I'm trying to -- City of Miami Page 77 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: No. Mr. Arriola: -- tell you. Commissioner Regalado: What I'm saying, Joe, is that we need to look -- we need to -- Mr. Arriola: Yes. Commissioner Regalado: -- follow closely -- Mr. Arriola: Yes, yes. Commissioner Regalado: -- the case because they only come here with bad news. Mr. Arriola: Yes. Commissioner Regalado: They would not tell us, "hey, we just won a settlement. You know, we got a million or two millions, or whatever back," but you know about the -- Mr. Arriola: Yeah. Commissioner Regalado: -- stock market; I know very little, but the thing I know is that all these big brokerage firms are settling with the people because of the 9/11, so this is something that we need to look -- My point is that $3.7 million will be a great relief to the people ofMiami, not because it's going to solve the problem because I totally agree with Commissioner Gonzalez. Every year they are auctioning 25 to 26,000 homes in the steps of the courthouse because of liens of property taxes, and last year -- well, this April, I had the pain of going with all the addresses, and mind you, after Opa Locka, the City ofMiami was second in liens being auctioned off in the steps of the courthouse by Miami -Dade County, the Clerk's Office. I really believe that this 3.7 would at least decelerate. It's like if we get $0.10 out of the gallon of gasoline, at least it decelerates, because at the pace that we're going now, people who have income from Social Security, which only gross two percent per year, 2.1 per inflation, would not be able to keep their homes. In the case of the area that I represent, it's 94 percent Hispanic. In the Flagami area, like some of the area, 80 percent are retire people that have their own -- their home probably pay, but they cannot afford the taxes and the fire fee, and the insurance. As a matter of fact, because of Katrina, we have had at least 20 to 25 requests from people who do not have insurance, and their homes were damaged and FEMA (Federal Emergency Management Agency) would not take care of them, so it is a relief. I really congratulate my fellow members of the Commission for what they did. They did something very good for the people ofMiami, andl also congratulate you because you found 3.7 without the end of the world, so -- Mr. Spring: "We." Commissioner Regalado: You -- Mr. Spring: It was a team effort. Commissioner Regalado: -- and you know what, I'm always the sore thumb, but philosophically, I do not like, I do not agree with the fire fee, but I thank you for what you did in finding that money without the end of the world Chairman Sanchez: Commissioner Winton, you're recognized. City ofMiami Page 78 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: I think you all have said enough, andl'm ready to go back and do something else now. Let's vote. Chairman Sanchez: Commissioner Allen, is there anything else? Commissioner Allen: I -- maybe just a -- I'll -- just a small comment. Chairman Sanchez: Vice Chair -- I'm sorry. Commissioner Allen: You know, I'm just curious. Obviously, I would assume, Larry, you spoke about the fact that you're going to look to -- across-the-board from a cross -averaging perspective to see if we could find money to either supplement any shortfalls in that area, but that also contemplates that the Fire Department will look at even reducing some of those maybe programs that may not necessarily be necessary, so we can get some sort of equilibrium. Mr. Spring: Well, it's a bit of a conundrum because this board has, last night, directed me to add to the Fire Department, so me going back and saying, oh, I'm going to -- here, let me cut some of your stuff, it's going to be difficult. We will make this happen. Commissioner Allen: All right. Mr. Spring: You know, as I told Commissioner Gonzalez, you directed us; we'll make it happen, and that's kind of the bottom line on it. Commissioner Allen: OK. Chairman Sanchez: Vice Chairman Gonzalez. Vice Chairman Gonzalez: Listen, I have a sentiment inside me since yesterday. I didn't want to address it yesterday because I knew we had a long day, but talking about Tom Gabriel. When he stood up at the podium there, and let me tell you, the -- his presentation really impacted me when he said, you people didn't pay us 10 years ago, or you paid us $8 million, or you paid us whatever dollars, and then you didn't pay then; you have to pay now. Well, apparently, he doesn't realize that the five of us -- Chairman Sanchez: No. Vice Chairman Gonzalez: -- we -- Chairman Sanchez: No, no, no, no, all of us were not here. Vice Chairman Gonzalez: No, we, the five of us, and the residents and the taxpayers of the City ofMiami because those are the people that we represent. To me, that statement was insulting. To me, it was insulting. "You didn't pay me. You didn't pay us back then now; you're paying us now," OK. It's insulting to me as a taxpayer and as a resident of the City ofMiami, not as a Commissioner, as a taxpayer and resident of the City of Miami -- I don't know where he lives. Maybe he lives in Broward. Maybe he lives -- I don't know where, in the Keys. Who knows where he lives. As a resident, it insults me. As a Commissioner, it insults me and the people that I represent, andl'm sure that it also insults all of you and the people that you represent. Thank you. Chairman Sanchez: Thank you. We have committed our government to enact across-the-board tax cuts on all the fees, andl think we've done that. I think we've been able to reduce the millage for the last seven years. We have been able to reduce the fire fee. We maintain the garbage fee at 325, which is a commitment that we have, and we have even lowered the debt service by one -- City ofMiami Page 79 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.11 05-00761 Department of Solid Waste by .185 percent. Now, I want to strike a balance. I'm here today to make the best compromise that creates the best possible result for our taxpayers, as long as it is fiscal prudent. I want to make sure of that. I want to give our residents the tax relief they deserve, but I also want to make sure that they -- that we will continue to provide the best level of service possible with Fire Department and EMS (Emergency Management Service), one of the most important service that we provide. Before I vote, I want to have the Budget director come up to state clearly on the record that if we take this action, we will have adequate funding for our Fire Department to provide first-class service to our residents, and then I also want the chief to come up on the record -- Mr. Spring: Can he go first? Chairman Sanchez: -- and put something on the record on that, because I take this very, very seriously. If we have one responsibility here, by law, by State and our City charters, to balance a structurally, healthy budget -- it has to be a balanced budget -- andl want to make sure that this is the only item that we're having problems with. I'm very grateful to see that, in the past, we had many heated debates and many, many nasty battles that we're not having here today, based on the budget, but I want to make sure from each director to make sure that they give me, at least me, the assurance that we will not be lowering our first-class level of service by our Fire Department. Mr. Spring: Commissioner, I will let the chief talk about the level of service, but with regards to the budget funding, we will find other departments and other -- and additional revenues in order to balance this, so they will not be impacted based on, again, the direction of this Commission. Chairman Sanchez: All right. Chief. Chief William "Shorty" Bryson: Shorty Bryson, Fire chief. Just based upon that and what the Manager has said, we are going to have the capital money to provide for our apparatus, our stations, our alarm system, our radio system. I feel very comfortable that we'll provide the same service that we've been providing, and grow with the community to do that. Chairman Sanchez: Thankyou so much, and at this time, I believe we are prepared to vote. Mr. Arriola: Commissioner, you might not be drinking champagne, but they'll sure get plenty of beers, OK? Chairman Sanchez: All right. At this time, I believe we're ready to vote. It is a resolution, and the resolution sets forth that it'll be a reduction of 25 percent, andl believe in that resolution, they'll also be a clause saying that further reductions in the years to come. All right. All in favor, say "aye." Anyone in opposition, having the same right, say "nay.' Commissioner Regalado: No. Chairman Sanchez: Madam Clerk, 4/1. All right. I believe that concludes our budget hearing. We will be back September 22. Thankyou so much. This meeting is adjourned. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), RELATING TO THE PROVISION OF SOLID WASTE SERVICES, FACILITIES AND PROGRAMS IN THE CITY OF MIAMI ("CITY"), FLORIDA; IMPOSING SOLID WASTE ASSESSMENTS AGAINST ASSESSED PROPERTY LOCATED WITHIN THE CITY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2005; APPROVING THE RATE OF ASSESSMENT; APPROVING THE ASSESSMENT ROLL; AND PROVIDING FOR AN City of Miami Page 80 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 EFFECTIVE DATE. 05-00761 Legislation.pdf 05-00761 Exhibit 1.pdf 05-00761 Exhibit 2.pdf 05-00761 Summary Form.pdf 05-00761 Previous Legislation.pdf 05-00761 Previous Search.pdf 05-00761 Previous Report.pdf Motion by Vice Chairman Gonzalez, seconded by Commissioner Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Winton, Sanchez, Regalado and Allen R-05-0541 Chairman Sanchez: OK. BH.11, it's a resolution. That's Solid Waste, leaving it at 325. All right. Vice Chairman Gonzalez: I'll move the -- I move BH.11. Chairman Sanchez: There is a motion by Vice Chairman Gonzalez. Second? Commissioner Allen: Second. Chairman Sanchez: Second by Commissioner Allen. That leaves the Solid Waste as we promised, at 325 for the next three years or four years? Four years, OK. It's a public hearing. Anyone from the public wishing to address this item, please step forward and be recognized. Mariano, I hope that you praise our Solid Waste Department. Mariano Cruz: I like Solid Waste. They're my neighbors. Chairman Sanchez: OK. Mr. Cruz: From 90 -- 20th Street; I live on 26th Street. Mariano Cruz, 1227 Northwest 26th Street. The only thing want to know is my -- 325, my household expense, plus all the household in Allapattah, the retired people and the whole thing, get the same service that I've seen people here in the Grove get. You know (UNINTELLIGIBLE) better or worst; same service. Chairman Sanchez: I don't think they discriminate. Vice Chairman Gonzalez: All right. Chairman Sanchez: They treat everybody the same. Mr. Cruz: I seen it today with my own eyes. Chairman Sanchez: All right. Commissioner Winton: That was storm pick-up -- Chairman Sanchez: It's a resolution. Commissioner Winton: -- not Solid Waste. Chairman Sanchez: We need to vote on that, Larry? City of Miami Page 81 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Larry Spring (Chief Strategic Planning, Budgeting & Performance): It is a resolution. Chairman Sanchez: All right, it's a resolution. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. BH.12 05-00932 RESOLUTION Bayfront Park A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Management Trust ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE BAYFRONT PARK MANAGEMENT TRUST, ATTACHED AND INCORPORATED, IN THE AMOUNT OF $6,264,000, TO PROVIDE FOR THE OPERATIONS, MAINTENANCE AND CAPITAL IMPROVEMENTS OF MILDRED AND CLAUDE PEPPER BAYFRONT PARK, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006. 05-00932 Legislation.pdf 05-00932 Exhibit 1.pdf 05-00932 Exhibit 2.pdf 05-00932 Exhibit 3.pdf 05-00932 Cover Memo.pdf Motion by Commissioner Winton, seconded by Vice Chairman Gonzalez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Winton, Sanchez and Allen Absent: 1 - Commissioner Regalado R-05-0542 Chairman Sanchez: BH.12 is a resolution at Bayfront Park. The executive director, just come on up and read it. Let me just say that Bayfront Park was ranked as the number 10 facility worldwide based on ticket sales. Congratulations. Tim Schmand: Thank you very much. Tim Schmand, Bayfront Park Management Trust, 301 North Biscayne Boulevard. A resolution of the Miami City Commission, with attachments, adopting -- approving and adopting the annual budget of the Bayfront Park Management Trust, attached and incorporated, in the amount of $6,264,000, to provide for the operations, maintenance, and capital improvements ofMildred and Claude Pepper Bayfront Park, for the fiscal year commencing October 1, 2005, and ending September 30, 2006. Chairman Sanchez: All right. Is there a motion? Commissioner Winton: So move. Vice Chairman Gonzalez: 171 move. I'll move -- Chairman Sanchez: There's a motion -- Vice Chairman Gonzalez: -- BH.12. Chairman Sanchez: -- by Commissioner Winton, second by Vice Chairman Gonzalez. That is a resolution approving the Bayfront Park budget. All in favor, say "aye." City of Miami Page 82 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.13 05-00788 SEOPW and OMNI Community Redevelopment Agencies The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opp -- I apologize. It's a public hearing. Anyone from the public wishing to address this item, please step forward and be recognized. Seeing none, hearing none, the public hearing is closed. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ACCEPTING AND ADOPTING THE BUDGETS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES, ATTACHED AND INCORPORATED, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, AS APPROVED BY THEIR RESPECTIVE BOARD OF DIRECTORS. 05-00788 Legislation.pdf 05-00788 Exhibit 1.pdf 05-00788 Exhibit 2.pdf 05-00788 Summary Form.pdf Motion by Vice Chairman Gonzalez, seconded by Commissioner Winton, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Winton, Sanchez and Regalado Noes: 1 - Commissioner Allen R-05-0551 A motion was made by Commissioner Gonzalez, seconded by Commissioner Winton, and was passed with Commissioner Allen voting against and the remaining four Commissioners voting with the motion to deny funding -from the City's General Fund account to the Community Redevelopment Agency for the Southeast Overtown Park West and Omni districts. Chairman Sanchez: BH.13. Tim Schmand: Thank you. Chairman Sanchez: It's a resolution. That is the Omni Community Redevelopment Agency. Commissioner Allen: Correct. Chairman Sanchez: Frank. Commissioner Allen: Frank. FrankRollason: Good evening, Mr. Chairman. FrankRollason, executive director of the Southeast Overtown/Park West and Omni CRAs (Community Redevelopment Agencies). I'm here tonight to recommend that the budgets that were approved by the board of directors for both of these agencies be accepted by the City Commission. Commissioner Allen: I move the item, Mr. Chairman. Chairman Sanchez: There's a motion by Commissioner Allen. Is there a second? City of Miami Page 83 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Larry Spring (Chief Strategic Planning, Budgeting & Performance): Mr. Chair. Vice Chairman Gonzalez: Second. Mr. Spring: Mr. Chair, may I -- ? Chairman Sanchez: Yes, sir, executive director. Before we vote on -- Mr. Spring: This is one of the items with outside agencies that we do have a difference in the recommendation being proffered by the agency and what the City Administration is proposing as our budget appropriation for this agency, and it's the general fund portion. We're recommending no funding, which would be approximately a reduction in the budget as presented to you of $659, 000. Chairman Sanchez: A reduction? Mr. Spring: Of the request that is before you of 659, 000. Commissioner Winton: It's the -- Mr. Spring: It's the City's contribution portion. Commissioner Winton: This is -- yes. This isn't increment. This is general fund money, and he's suggesting that we take it out, and I'm going to suggest that, particularly, given what we just did, you're going to want it -- Chairman Sanchez: Yep. Commissioner Winton: -- and need it, andl think we ought to follow the Manager's recommendation on this particular item to the T. Commissioner Allen: Well, I'd like to weigh in my discussion. Chairman Sanchez: Abso -- Commissioner Allen: Respectfully, Commissioner Winton, I would rightfully disagree. This is an entity that obviously is doing a great deal of development in both of our districts. I would assume that they need that general fund money to defray administrative expenses, and if I'm not mistaken, the City gets some level of renumeration [sic], if I'm not mistaken, andl think Mr. Rollason can expound on that. I think we do pay the City for certain services that they provide for the CRA, so to me, there seems to be a seamless relationship where both parties are -- if you could -- Commissioner Winton: Mr. City -- Commissioner Allen: -- expound on that, I would greatly appreciate it, and in addition to that, I think there's a history to this as to what was rightfully owed from the City as relates to the CRA, andl guess Frank can expound on that history as well, so respectfully, I'd like to also hear from the executive director. Chairman Sanchez: Frank, I want to afford you to opportunity. Mr. Rollason: I -- let me start off by saying that -- to put on the record that if the question is whether or not we can afford this amount of money to go back to the City, the answer is yes, we City of Miami Page 84 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 can afford the money to go back. Chairman Sanchez: All right. Mr. Rollason: That's the first issue -- Chairman Sanchez: Can I just ask you -- Mr. Rollason: -- but -- Chairman Sanchez: -- a question? I just want to ask you a question as a safeguard as to what you have stated. How -- the TIFs (Tax Increment Funds) have increased. Mr. Rollason: That is correct. Chairman Sanchez: By how much? Mr. Rollason: Well, let me go at it this way for a minute, if you will allow me for a moment to speak on it, because yes, the TIFs are increasing, and certainly over the next few years, they're going to increase dramatically, and we know that and you know that as a board, with the reports that I've sent you, and we're looking at bonding that money, et cetera, et cetera, but there's an issue -- a basic issue dealing with this money that has to do with, to me, the responsibility of the CRA, and certainly me as the executive director, andl think what the Mayor said when he came up here and talked about taking the responsibility seriously with the tax funding and the trust that we have, we all have, and so I come from the position that I am taking that position with that money that comes from the City and it does not come from the City with no history to it, and that is what Commissioner is alluding to. There were situations that happened in the past dealing with funding of the CRA, property of the CRA, handled by the City that resulted in the interlocal agreement being entered into that came as a resolution or a settlement for this money to come to the CRA. One of the issues was the selling of the property underneath the arena. That property belonged to the CRA. It was transferred to the City for a dollar; was then sold to MSEA (Miami Sports & Exhibition Authority) for $6 million during the -- andl believe that was the figure -- financial crisis, and that certainly helped the City. There was also revenue that came to the City off of the parking lots that were just west of the arena. That money was supposed to come to the CRA. That money went to the City. There was also a action taken by the City to provide the CRA with CDBG (Community Development Block Grant) money of about a $25 million group at $5 million a year, and that money did not materialize, andl think what happened was that because of that and some other issues, this interlocal agreement was entered into where this money came in two different segments to the CRA to address those issues. Clearly, it is within the power of both the Commission as the Commission and the Commission as the board to amend that interlocal agreement and, you know, make that money go away. What impact does it have for us for this coming year? Right now the Southeast Overtown/Park West interlocal agreement has no cap on it, because it was such an early CRA with the County, on how much can be used for administrative fees. The Omni CRA, which came a little bit later, has a cap on it for 20 percent. When I went to the CRA, we were running 17, 19 percent of TIF money was going into administration -- administrative costs. Today, with the contribution that comes from the City, I put that money in the Southeast Overtown/Park West side because that is the agency that is struggling the most to make ends meet and do the projects, and as a result of that, the amount of TIF money that I use from Southeast Overtown/Park West is 2 percent, and the amount of money that I use from Omni is roughly 6 percent. If this money were to go away and we split it evenly between the two CRAs, we will pay about 6 percent out of TIF from Southeast Overtown/Park West, and almost 7 percent out of Omni to take care of the administration, far below what is allowed for administration. The issue comes that the reason that the -- that it's so low this year at 2 percent is a rollover of the money from the expenditures that we have not made from this year that I'm rolling over into next year, and we're able to utilize that money, so you City of Miami Page 85 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 are going to make it this year from the standpoint of all the projects that I presented to you and the budgets for both CRAs for '06, with this money going away are still funded if you decide to do those projects. In other words, the next meeting we have in September, I'm bringing a few grants to you. Those -- that money is there without this money from the City. Where I see the hit coming is the following year. I will deplete my budget reserves this year because of making the balances out with the TIF to, you know, handle the shortfalls that we have that we can fit in the slots -- Commissioner Allen: Right. Mr. Rollason: -- and then come '07 budget, we're going to take a hit. When this issue came to me -- and by the way, it came to us after we had submitted our budget to the City because we're required in the CRA to have a budget to you by June of each year, and so therefore, in May -- April/May, we were exchanging budgets back and forth with the City, and this issue was not raised. Our budget was passed by you with the 659 in there. What I have suggested is that for this year, you know, not taking into consideration what just happened here, but I'm just saying to you what I -- my discussions with the City, is leave it like it is for this year and get us off -- come next year, and we can plan on that, and can make the adjustments project -wise and whatever. You know, that being said, it's a policy decision. I mean, we're going to make it in the CRA without the money, and l just want to put on the record that it is not like it was just money coming because out of the goodness of the part of the City to help the CRA along, there's a history to it, and things were fixed. If you all decide things are fixed enough and we're good enough, and you're happy with it going away, you know, so be it; we'll certainly make it, and when the buildings that are along the boulevard come on-line, we'll be able to take care of a bond issue that will do very well for both of the CRAs, so you know. Chairman Sanchez: Thank you, Frank. All right. Any -- Mr. Rollason: If that -- Commissioner, if that -- Chairman Sanchez: Commissioner Allen. Commissioner Allen: Yeah, I think -- I also wanted you to just expound on the issue of the services that the City provides the CRA. Mr. Rollason: Yes, sir. Commissioner Allen: Thus, there's a repayment. Mr. Rollason: Yes, there is. This agency actually sends cash back to the City. I mean, we pay a hundred percent of the services that we get from the Assistant City Attorney and one of his support staff. We pay money to the City Clerk for a person there, cash. In other words, with us, it's not like moving it on a line item or a journal entry and shifting it from here to here and taking out of this pocket and put in that. Cash flows and we send money, so again, when you make this decision -- Commissioner Winton: Well, that's a fee for service. Mr. Rollason: No. You're correct, but what I'm saying is is that in some agencies that you fund and then they give the money back, it's sort of like you gave it to them and they gave the money back. The situation that I'm in, you take this money away, I am going to continue to pay for those services, and that is going to come out of that TIF. In other words, some agencies don't have another -- Commissioner Winton: Like the DDA (Downtown Development Authority). City of Miami Page 86 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Rollason: -- pot that -- right -- they're taking it from, so -- Chairman Sanchez: Frank, how much is that, ballpark figure? You probably -- Mr. Rollason: I think the -- Chairman Sanchez: -- pay, what, legal and Clerk? Mr. Rollason: -- group with the attorneys is like $171,000; the City Clerk is $35, 000, and I also want to mention, when we talk about -- and again, the City Attorney is here, who is general counsel for the CRA -- also the lawsuits that are going on with the CRA are being funded out of the CRA, so when you look at what happens with Crosswinds, the City went on the hook -- but just hear me out -- for the first $75, 000 dealing with the Crosswinds. Since then, all of the expenditures that come out of that lawsuit, which emanated out of the City, not out of the CRA. In other words, we came into this because the land came over to us, so those items that are being paid, Crosswinds is being paid out of the City, out of the CRA. Bayview Towers, the trans -- you know, all the transactions that we take with outside counsel that is done, we pay that money, so that money is budgeted for this time, although I can tell you that Crosswinds and a couple others are starting to come to a point we're going to -- you know, we're -- we've got some issues with the funds that are going out on that stuff but -- Commissioner Winton: You're joking. Mr. Rollason: -- we have that budgeted for this year in the budget, and you know, we're not going to have the room for you to come to me and say, hey, you know what, we want to do a little extra at the MTV (Music Television) or something. Southeast Overtown/Park West is going to be tight right to the bone for this next year. Commissioner Allen: So, Mr. Chairman. Chairman Sanchez: All right. Commissioner Allen. Commissioner Allen: Yes. We -- I think with -- this motion was seconded, andl ask that we go forward with the vote and continue to fund the CRA at its current funding level -- Chairman Sanchez: All right. Commissioner Allen: -- for this year. Chairman Sanchez: All right. There's a motion and a second. Who made the motion, executive director -- who made the motion? Commissioner Allen: I made the motion. Priscilla A. Thompson (City Clerk): Commissioner Allen and second -- Chairman Sanchez: And who second it? Ms. Thompson: -- by Vice Chairman Gonzalez. Commissioner Winton: Well, he needs to -- Chairman Sanchez: Vice Chairman Gonzalez. City of Miami Page 87 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Winton: Doesn't he need to be here? Chairman Sanchez: He is not here. Commissioner Allen: He's coming now. Mr. Rollason: There he is. Commissioner Allen: In the restroom. Chairman Sanchez: We'll wait for him. All right. There's nothing like budget season; although, hurricane season's worse. Commissioner Winton: Roll call. Mr. Rollason: Listen, we're doing pretty good. Chairman Sanchez: OK. That is true. Mr. Rollason: You know. Commissioner Regalado: Mr. Chairman, ifI may. I think, you know, Frank has always been straightforward -- Commissioner Allen: Yep, straight shooter. Commissioner Regalado: -- when he was in the Fire Department, when he was in Risk Management, when he was Assistant City Manager, when he was, I think for a few hours, Manager -- Mr. Rollason: Few days. Commissioner Regalado: Oh, few days -- Mr. Rollason: Few days. Chairman Sanchez: Few days. Commissioner Regalado: -- and if he says, you know, we're going to do OK, he understand that what we just did several minutes ago impacts his presentation, so I trust what he says; we're going to do OK in the CRA, andl cannot, after instigating something that will bring a hole to the budget, I cannot support giving the budget from the general fund to the CRA, so that is my position, but I would tell you this. Since you are a self-supporting, self-sufficient agency, it should be understood that the CRA should be independent and that the board of the CRA should appoint the executive director, and the executive director should have complete powers to -- Commissioner Winton: I don't think that's the subject for tonight. Commissioner Regalado: It is the subject -- Chairman Sanchez: All right. Commissioner Regalado: -- because it's about -- Commissioner Winton: The CRA isn't the subject. City of Miami Page 88 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: -- whoever pays, commands -- Chairman Sanchez: Madam -- Commissioner Regalado: -- and in this case, Frank has been able to make the CRA self-supporting with all the different -- so I just wanted to say that cannot support, at this time, giving -- Chairman Sanchez: All right. Commissioner Regalado: -- the money from the general budget. Chairman Sanchez: Madam Clerk, who made the second, you said? Ms. Thompson: Vice Chairman Gonzalez. Vice Chairman Gonzalez: I'll withdraw my second. Chairman Sanchez: You withdraw the second. OK. Commissioner Allen, you still -- you made the motion. Is there a second? Commissioner Allen: Yeah, I made a motion to -- Chairman Sanchez: Hold on, hold on. Let's see if there's -- you made a motion -- Commissioner Allen: Right. Chairman Sanchez: -- to fund them with the six hundred and fifty-nine -- Commissioner Allen: Current level. Chairman Sanchez: -- thousand, three hundred and eighty-eight dollars. Commissioner Allen: Correct. Chairman Sanchez: OK. There's a motion on the floor. Is there a second? There is no second. All right. We need a motion to fund them without the $659, 388. Commissioner Winton: So move. Chairman Sanchez: Motion by Vice Chairman Gonzalez, second by Commissioner Allen. All right. It's open for discuss -- Commissioner Allen: Wait, wait, wait, wait. Chairman Sanchez: I'm sorry. Commissioner Winton: No. Chairman Sanchez: I'm sorry. Commissioner Allen: No, no, I didn't second that. Chairman Sanchez: I apologize. Second by Commissioner Winton. It is getting long -- the day City of Miami Page 89 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 is getting longer, OK, so bear with me. I feel like a lion tamer at times. All right, so it's a motion and a second. It's under discussion. Commissioner Allen. Commissioner Winton: Comment. Commissioner Allen: I would just only reiterate what I said previously. I think that TIF money should be used for further economic development, andl think that they should be continued funding at the current level. Maybe we can address this a year from now, is my advice. Chairman Sanchez: Commissioner Winton. Commissioner Allen: Because we wait -- we got to see some bricks and mortar first before that TIF is actually realized; am I correct, Frank? Mr. Rollason: Well, listen, there are bricks and mortar projects that have been going on -- Chairman Sanchez: (UNINTELLIGIBLE). Mr. Rollason: -- that you are seeing in the CRA -- Commissioner Allen: Right. Mr. Rollason: -- and we're continuing that way, and you know, until we do something with the bond -- Commissioner Allen: Right. Mr. Rollason: -- you know, we're going to be sitting tight for a year or so anyway. Commissioner Winton: Mr. Chairman. Chairman Sanchez: All right. Commissioner Winton. Commissioner Winton: Frank, whatl want to say to you is thatl think that you stepped to the podium in a difficult circumstance. I think you did a great job just now in explaining your position, defending your position, and understanding what's going on. I think you did a real good job there, but we made a decision a little while ago that's going to have dramatic -- Chairman Sanchez: Yep. Commissioner Winton: -- implications -- Mr. Rollason: Yes. Commissioner Winton: -- that we haven't fully appreciated yet, and so we want to thank the CRA for participating -- Chairman Sanchez: For their donations. Commissioner Allen: It sounds like -- Commissioner Winton: -- in helping solve this problem that we've got going on by moving general fund money back into the City and leaving it as general fund money, and TIF money, which is one hundred percent. It isn't half the TIF. It isn't 75. Hundred percent of the TIF goes to CRA, and so we'll figure out how to live. City of Miami Page 90 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Rollason: And this move -- Chairman Sanchez: Frank. Mr. Rollason: -- gives you five percent of what you're looking for -- Chairman Sanchez: Frank. Mr. Rollason: -- although, I think Larry had already figured it being in there, so -- Chairman Sanchez: Frank. Mr. Rollason: Larry, smile a little, man. Come on. Chairman Sanchez: He's not having a good day. He's not having a good day. Frank, I've always admired your professionalism and your honesty. I've always respected that, so thank you so much. All right. Yes, sir, Vice Chairman. Vice Chairman Gonzalez: The reason that withdraw my second was, you made a statement -- Ms. Thompson: You -- Vice Chairman Gonzalez: -- where you said -- Commissioner Winton: Your mike's not on. Vice Chairman Gonzalez: -- that you can -- Commissioner Winton: Hey. Vice Chairman Gonzalez: I'm sorry. The reason that I withdraw my second was based on the statement that you made, that you're sure that you're going to make it even without this money -- Mr. Rollason: I mean, for me not to say that -- Vice Chairman Gonzalez: -- but -- Mr. Rollason: -- would be less than honest. Vice Chairman Gonzalez: -- but -- Mr. Rollason: I know that we can. Vice Chairman Gonzalez: Right. I know you're an honest person, but can promise you that if the CRA's in a difficult position, there will be a supporter here -- Mr. Rollason: I understand. Vice Chairman Gonzalez: -- to reinstate -- you know, to find a way to reinstate the money, if it's needed. Mr. Rollason: Appreciate that -- Vice Chairman Gonzalez: OK. City of Miami Page 91 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Chairman Sanchez: All right. Mr. Rollason: -- and with the vote of this, then I'll come back to the Board in October with the amended budget and we'll -- Commissioner Winton: Bingo. Mr. Rollason: -- you know, amend that to -- Chairman Sanchez: And we'll vote on it. OK. Mr. Rollason: -- vote on that. Chairman Sanchez: It's a resolution. All in favor, say "aye." Anyone in opposition, having the same right, say "nay." Commissioner Allen: Nay. Chairman Sanchez: All right, it's 4/1. Motion carries. Mr. Rollason: Thank you. BH.14 05-00792 RESOLUTION Department of A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Economic ATTACHMENT(S), ACCEPTING AND ADOPTING THE BUDGET OF THE Development MIDTOWN COMMUNITY REDEVELOPMENT AGENCY, ATTACHED AND INCORPORATED, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, AS APPROVED BY ITS BOARD OF DIRECTORS. 05-00792 Legislation.pdf 05-00792 Exhibit.pdf 05-00792 Summary Form.pdf Motion by Vice Chairman Gonzalez, seconded by Commissioner Regalado, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Winton, Sanchez, Regalado and Allen R-05-0543 Chairman Sanchez: All right. Department of Economic Development, BH.14. Charles Bird: Charles Bird, Economic Development. A resolution of the Miami City Commission, with attachments, accepting and adopting the budget of the Midtown Community Redevelopment Agency, attached and incorporated, for the fiscal year commencing October 1, 2005, and ending September 30, 2006, as approved -- Vice Chairman Gonzalez: I'll approve BH.14. Mr. Bird: -- by its board of directors. Chairman Sanchez: All right. There's a motion. Is there a second? The motion is made by Vice Chairman Gonzalez. Is there a second? This is a very small budget. There's no problem with this. City of Miami Page 92 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Commissioner Regalado: Second. Chairman Sanchez: All right. Second by Commissioner Regalado. Before we open it up for discussion, anyone from the public wishing to address this item, please step forward and be recognized. Seeing none, hearing none, the public hearing is closed, coming back to the Commission. Hearing no further discussion, it is a resolution. We'll vote on it today. All in favor -- Commissioner Allen: Let me -- Chairman Sanchez: -- say "aye." Commissioner Allen: Wait. Before we do that, Mr. -- this funding comes from the -- it doesn't come from the general fund right? Wait a second. Could you -- right. Larry Spring (Chief Strategic Planning, Budgeting & Performance): It's actually a part of their -- they have a TIF (Tax Increment Funds), in essence. Commissioner Allen: That's what I'm saying, they have a -- Mr. Spring: Like the -- Commissioner Allen: -- TIF, so there's no -- Mr. Spring: -- just like the CRA (Community Redevelopment Agency). Commissioner Allen: -- fiscal impact to the general fund Mr. Spring: No. Well, this is, because that money comes from our overall City -- Commissioner Allen: Right. Mr. Spring: -- tax assessment, so yes, but -- Chairman Sanchez: All right. Mr. Spring: -- it's not taking -from what we have right now. Commissioner Allen: Yeah -- Commissioner Winton: What (UNINTET,TIGIBT,F). Commissioner Allen: -- that's what I mean, right. Structurally, it's different from the other. Mr. Spring: (INAUDIBLE). Commissioner Allen: Right, OK. Gotcha. Vice Chairman Gonzalez: All right. All in favor. Chairman Sanchez: All right. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. City of Miami Page 93 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.15 05-00933 Fire Fighters/Police Retirement Trust RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF MIAMI FIRE FIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST FUND ("FIPO RETIREMENT TRUST FUND") FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, ATTACHED AND INCORPORATED, IN THE AMOUNT NOT TO EXCEED $1,746,565, EXCLUDING NORMAL COST, TO PROVIDE FOR THE ADMINISTRATION OF THE FIPO RETIREMENT TRUST FUND. 05-00933 Legislation.pdf 05-00933 Exhibit.pdf 05-00933 Cover Memo.pdf 05-00933 Memo.pdf Motion by Commissioner Winton, seconded by Vice Chairman Gonzalez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Winton, Sanchez and Allen Absent: 1 - Commissioner Regalado R-05-0544 Chairman Sanchez: We go to BH.15, which is the Firefighter Police Retirement Trust. Vice Chairman Gonzalez: That's the bigger one. Tom Gabriel: Good afternoon. Tom Gabriel, with the chairman of the FIPO (Firefighters and Police Officers) Trust. Chairman Sanchez: Good evening. Mr. Gabriel: Good evening, good evening. Chairman Sanchez: It's been a long day. Mr. Gabriel: It's going to be a longer one for me. This year's budget, if you will, will go up about 6.9 percent. Commissioner Allen: Six point nine. Mr. Gabriel: We have a total fee -- management fee, administratively, of .13 percent, also known as 13 basis points, and what that gives you is a professional staff dealing with $1.3 billion worth of assets, 1,450 active members, 1,322 retirees, and unlike what was stated earlier, today our investment returns of 12.9, 15.7, negative 5, 10.6, 12.7, 13.8, 6.9, 28, 13 percent, and 21 over the last 10 years, averages out to a 10.1 percent over the last 10 years, including the bad years, so we're here to answer any questions. Commissioner Regalado: If it's that good, why do we have to give you so much money? Mr. Gabriel: Unfortunately, in the pension world, we deal on a little different basis than what the Commissioners have to deal and suffer through on a year-to-year basis of a budget process. Our particular funding level is not just for one year, it's not for two years, it's not for three; it's for the next 30, 40, or 50 years. Even the investment returns that we receive, we don't count them as a year. This year, currently, year-to-date, we're at 14 percent, which is a nice return, I City of Miami Page 94 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 think anybody would believe, but the way that the actuaries figure out the way the liabilities have grown, it is costing you more. It is also true, it is also true that for many, many years you were paying less than what you should have been, and that was, as some of you know, from deals that were made either at the negotiations table or actuarial changes, and just several years back you took payments of five million, five million, and five million three years in a row, andl believe in one year, you even took -- paid only 1.2 million, so what you're averaging -- you are paying now for what wasn't paid in before, and can assure you that you'll be paying less shortly here. Unfortunately, it is painful, and know it's hitting your budget at a bad time. Commissioner Allen: Right, but what was the Manager -- Vice Chairman Gonzalez: I do have a question because, you know -- Commissioner Regalado: Can I -- Mr. Chairman, can I -- Chairman Sanchez: Commissioner Regalado and then -- Commissioner Allen: Right -- Chairman Sanchez: -- Vice Chairman Gonzalez. Commissioner Allen: -- and then I'll just -- we'll just -- Commissioner Regalado: There are many mutual funds and pension plans that are suing their brokers because after 9/11, there were some stocks that collapsed. Do you have any bad experience? Have you lost any money in your investment because of this bad advice, or are you like suing? Mr. Gabriel: We have sued several individuals. We've taken part in several major stockholder suits, including taking a lead on one of them, but in general, in general -- and this is very tough to say because of the increase in the costs -- in general, our managers have performed well; 10.1 percent over the 10 years, including those several bad years. We have to at least get to seven and three quarters. Any time that we don't receive seven and three quarters, you have to pay more than normal, so when we get to 10 percent a year, you save a couple million dollars, but if we drop to a negative year, like we've had two years in a row back four, five years ago, not only do you take the loss of say, 10 percent, but you didn't gain the seven and three quarters, so you took a 17 and 3 quarters hit. Two years is what is causing the pain. Those two years are going to be smoothed out over the next couple of years, and you'll see those contributions drop. Commissioner Allen: What was the management fee again? Mr. Gabriel: Management fee on the administrative budget for our administration is 13 basis points, .3 percent -- Commissioner Allen: Thirteen. Mr. Gabriel: -- and on management fees, 4 -- I misspoke. Just slightly -- the funding for our managers that run our money -- Commissioner Allen: Right. Mr. Gabriel: -- over everybody is 33 basis points. Commissioner Allen: Right, and what I'm asking -- City of Miami Page 95 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Gabriel: Point 33. Commissioner Allen: -- is it a possibility you can go and renegotiate that fee to -- has that been any discussions to that end? Mr. Gabriel: We have been talking with several different -- we change money managers when they don't perform and meet, and we do negotiate. We have sort of a reputation as being hardball negotiators on some of those, but you do have to pay for professional management. Commissioner Allen: Yeah, I understand, but you want to get something that's market rate, andl was just wondering, have you gone out and really compared to see if this is the best management fee that you can negotiate -- Mr. Gabriel: Each -- Commissioner Allen: -- because that has a bearing on returns, as well, you know. Mr. Gabriel: Absolutely, andl think that if you even ask the Budget Director that the total fee of .46 for -- percent on -- and 46 basis points for a 1.2 billion fund or a 3 billion fund is pretty competitive, and we do negotiate, but there's 16 different managers, so they come up. We have some that are -- you know, you pay more -- Johnny probably knows better than anybody -- you might pay a certain percent for real estate, and we have an SMP manager -- Commissioner Allen: I understand. Mr. Gabriel: -- that we only pay, I think it's -- Commissioner Allen: Right. It depends on the nature of the -- Mr. Gabriel: -- .03 percent. For the small caps, you have to pay more, the foreign investments. Commissioner Allen: Yeah, it depends on the nature of the investment. Mr. Gabriel: Right. Commissioner Allen: What equity you're investing, that's true -- Mr. Gabriel: Right. Commissioner Allen: -- but the reason why I'm asking -- because I don't even have all of the -- this data that you're throwing at me. That's why I was asking. I just have -- just some basic line item budgeted items. Mr. Gabriel: Correct, and part of -- you know what -- Commissioner Allen: Shouldn't I have had -- Mr. Gabriel: -- part of that is -- Commissioner Allen: I should have all -- Mr. Gabriel: -- this part of the budget does not deal with managers. Commissioner Allen: Right, I know, but -- City of Miami Page 96 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Mr. Gabriel: What you have before you is what you're here to approve. Commissioner Allen: Yeah, I know -- Mr. Gabriel: OK. Commissioner Allen: -- but I'm just -- in terms of the cost structure because that has a bearing on the returns, since you've made a statement earlier that, you know, you're achieving pretty favorable returns, but you need to have some sort of leveraging out as you go forward so -- I mean, when you say all those things, I like to have that before me to see if it makes sense, so -- Mr. Gabriel: We'll make sure you get it. Commissioner Allen: OK. Mr. Gabriel: We will definitely make sure you get it. Commissioner Allen: Yeah. Chairman Sanchez: All right. It is a public hearing. Do we have a motion and a second? Commissioner Winton: So moved. Chairman Sanchez: There's a motion by Commissioner Winton. Is this a second? Vice Chairman Gonzalez: Second. Chairman Sanchez: Second by Vice Chairman Gonzalez. Before we open it up for a discussion, it is a public hearing. Anyone from the public wishing to address this item, please step forward and be recognized. Seeing none, hearing none, the public hearing is closed, coming back to the Commission for a discussion. Hearing no discussion on the item, it's a resolution. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, say "nay." Motion carries, 4/0. BH.16 05-00935 RESOLUTION Civilian A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Investigative Panel ATTACHMENT(S), APPROVING THE PROPOSED BUDGET OF THE CIVILIAN INVESTIGATIVE PANEL, ATTACHED AND INCORPORATED, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006. 05-00935 Legislation.pdf 05-00935 - Exhibit.pdf 05-00935 - Cover Memo.pdf 05-00935 - Memo.pdf 05-00935 Previous Legislation.pdf 05-00935 Previous Legislation 2.pdf Motion by Commissioner Allen, seconded by Commissioner Winton, that this matter be ADOPTED PASSED by the following vote. City of Miami Page 97 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Votes: Ayes: 4 - Commissioner Gonzalez, Winton, Sanchez and Allen Absent: 1 - Commissioner Regalado R-05-0545 Chairman Sanchez: All right. Civilian Investigation Panel, and I am sorry. We're trying to get through this budget workshop or hearing as quickly as possible, so those of you who have sat out there for hours, we do apologize. Vice Chairman Gonzalez: We've been (UNINTELLIGIBLE). Larry Handfield: Good evening. My name is Larry Handfield, chairman of the Civilian Investigatory Panel/Police Oversight Board for the City of Miami, address 4770 Biscayne Boulevard, Suite 1200, Miami, Florida. Present also, we have two panel members. We had more. They had to leave. Attorney Tanya Brinkley and Tim Moore, who are present, here to request and read into the record a resolution of the Miami City Commission, with attachments thereof approving the proposed budget of the Civilian Investigatory Panel, with attachment incorporated, for the fiscal year commencing October 1, 2005, and ending September 30, 2006, as recommended by the Office of the City Manager, and we request that this Commission so approve the recommendation by both the panel members, as well as the City Manager. Commissioner Allen: I move the item, Mr. Chairman. Chairman Sanchez: All right. There is -- Commissioner Winton: Second. Chairman Sanchez: -- a motion by Commissioner Allen. Is there a second? Commissioner Winton: Second. Chairman Sanchez: Second by Commissioner Winton. It is a resolution. It is a public hearing. Anyone from the public wishing to address this item, please step forward and be recognized. Seeing none, hearing none, the public hearing is closed, coming back to the Commission. No further discussion on the item. It's a resolution. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries, 4/0. Thank you, sir. Mr. Handfield: Thank you so much. BH.17 05-00936 RESOLUTION Model City A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Community ATTACHMENT(S), APPROVING THE PROPOSED ANNUAL PLAN AND Revitalization BUDGET OF THE MODEL CITY COMMUNITY REVITALIZATION DISTRICT District Trust TRUST ("TRUST") FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, ATTACHED AND INCORPORATED. 05-00936 Legislation.pdf 05-00936 Exhibit.pdf 05-00936 Cover Memo.pdf DEFERRED City of Miami Page 98 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.18 05-00937 Department of Off -Street Parking A motion was made by Vice Chairman Gonzalez, seconded by Commissioner Winton, and was passed unanimously with Commissioner Regalado absent, to defer consideration of item BH.17. Chairman Sanchez: All right. BH.17, I believe, is going to be deferred. Commissioner Allen: Yeah, it's going to be deferred, Mr. Chairman. Chairman Sanchez: All right. There's a motion to defer BH.17. Is there a second? Commissioner Winton: Second. Vice Chairman Gonzalez: Second. Chairman Sanchez: There's a motion and a second. Motion is made by Vice Chairman Gonzalez, second by Commissioner Winton. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE DEPARTMENT OF OFF-STREET PARKING TO PROVIDE FOR THE OPERATION OF GUSMAN CENTER FOR THE PERFORMING ARTS AND THE OLYMPIA BUILDING, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, ATTACHED AND INCORPORATED, IN THE AMOUNT OF $1,043,280, EXCLUDING DEPRECIATION. 05-00937 Legislation.pdf 05-00937 Exhibit.pdf 05-00937 Cover Memo.pdf 05-00937 Memo.pdf Motion by Commissioner Allen, seconded by Commissioner Regalado, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Winton, Sanchez, Regalado and Allen R-05-0546 Chairman Sanchez: All right. Department of Off -Street Parking. Sorry to keep you waiting. Commissioner Winton: Get (UNINTELLIGIBLE). Art Noriega: Art Noriega, executive director, Miami Parking Authority, 190 Northeast 3rd Street. This first resolution before you is the budget for the Gusman Center for Performing Arts. It's a resolution of the Miami City Commission, with attachments, approving and adopting the annual budget of the Department of Off -Street Parking to provide for the operation of Gusman Center for the Performing Arts and the Olympia Building, for fiscal year commencing October 1, 2005, and ending September 30, 2006, attached and incorporated, in the amount of $1, 043, 280. Chairman Sanchez: All right. Commissioner Allen: Right. City of Miami Page 99 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Chairman Sanchez: Is there a motion? Commissioner Allen: Yeah, there's a motion, but just one quick -- Chairman Sanchez: Let's make a motion and a second -- Commissioner Allen: OK. I make a motion that -- Chairman Sanchez: -- for the purpose of discussion. We could always vote it down or up. Commissioner Allen: Yeah. We move the item, but I just want to have for a discussion, as well. Chairman Sanchez: All right. There's a motion by Commissioner Allen, and second by -- Commissioner Regalado: Me. Chairman Sanchez: -- second by -- Commissioner Allen: Right. Chairman Sanchez: -- Commissioner Regalado. For the purpose of discussion, Commissioner Allen, you're recognized. Commissioner Allen: Yes. Mr. Noriega, could you expound on the budgeted deficit of 240,000? I see here -- something here -- right. Mr. Noriega: Yeah. Historically, the Gusman Center has really always operated as a -- in a deficit because it's a historic theater, and it's in the downtown core and it's -- our past history relates and something we think is going to dramatically change in the next few years is the additional residential units come on line -- Commissioner Allen: It will move away from being a deficit. Mr. Noriega: It will move away from that, and it is dramatically improved in the last five years. I mean, we -- this deficit as it was at one point, almost $600, 000, so we've dramatically improved it over the years. Obviously, the building condition has improved considerably through a great deal of capital investment by the State, County, and the City, as well, so -- Commissioner Allen: Right, so we'll see more foot traffic. Mr. Noriega: -- and this deficit really is on par with what was done -- Commissioner Allen: I see. Mr. Noriega: -- with what we had last year. The only increase in the budget from last year to this year relates to some County grants that we've gotten operationally that we have to book on the income and the expense side, so that's really -- Commissioner Allen: I see. Mr. Noriega: --the only increase. Commissioner Allen: Right, and we will begin to see more foot traffic at this facility, if you will, and -- I mean, we will be spending some more cap "X" in this facility, as well, correct? City of Miami Page 100 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 BH.19 05-00938 Department of Off -Street Parking Mr. Noriega: We're looking to spend some more capital dollars, as well. I think our last significant capital line item for this upcoming year, if we can get some additional money -- we've already gotten some money allocated from the State of Florida -- is for the seating on the second -- in the mezzanine level. Commissioner Allen: Right. Mr. Noriega: Aside from that, we just completed the seating at the ground floor level, as well as some ADA (Americans with Disabilities Act) improvements, so from a capital -- Commissioner Allen: And so -- Mr. Noriega: -- standpoint we're almost there. Commissioner Allen: And it will make it -- Mr. Noriega: It's an issue of really booking more dates. This budget accounts for roughly about 140 event days next year. Commissioner Allen: OK, so it'll be more competitive. OK. That's whatl was wondering. Thank you. Chairman Sanchez: All right. Any further questions? If not, it is a public hearing. Anyone from the public wishing to address this item, please step forward and be recognized. Seeing none, hearing none, the public hearing is closed, so it comes back to the Commission. There's already a motion and a second. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE DEPARTMENT OF OFF-STREET PARKING FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2005 AND ENDING SEPTEMBER 30, 2006, ATTACHED AND INCORPORATED, IN THE AMOUNT OF $10,993,683, EXCLUDING DEPRECIATION, AND OTHER NON -OPERATING EXPENSES OF $3,198,722. 05-00938 Legislation.pdf 05-00938 Exhibit.pdf 05-00938 Cover Memo.pdf 05-00938 Memo.pdf 05-00938 Accomplishments.pdf Motion by Vice Chairman Gonzalez, seconded by Commissioner Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Winton, Sanchez, Regalado and Allen R-05-0547 Chairman Sanchez: We go to BH.19, which is also a resolution. City of Miami Page 101 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Art Noriega: This budget is the approval for the actual operating budget for the Department of Off -Street Parking. This is a resolution of the Miami City Commission, with attachments, approving and adopting the annual budget of the Department of Off -Street Parking for the fiscal year commencing October 1, 2005, and ending September 30, 2006, attached and incorporated, in the amount of $10,993, 683, excluding depreciation, and other nonoperating expenses of 3,198, 722. Vice Chairman Gonzalez: I'll move BH.19. Commissioner Allen: Right, and you guys -- Chairman Sanchez: All right. There's a motion by Vice Chairman Gonzalez. Second by Commissioner Allen. Commissioner Allen: Right. Just a quick question, Mr. Noriega. You guys intend to issue bonds pursuant -- or securitize this to issue bonds -- Mr. Noriega: Yes, we are. Commissioner Allen: -- at some -- right. Mr. Noriega: Our current schedule for issuing bonds is going to be some time in November. Commissioner Allen: And -- this year. Mr. Noriega: Of this next fiscal year. Commissioner Allen: Oh, of this next fiscal year. Mr. Noriega: Yeah. November of this calendar year, but it would actually fall in the next fiscal year, correct. Commissioner Allen: OK. Chairman Sanchez: All right. No further questions. It is a public hearing. Anyone from the public -- Commissioner Regalado: One question. It's important that Art puts on the record something that this City Commission did, and that it served very well. Some people may have forgot about the City garage and hurricanes. Do we know how many cars people -- Mr. Noriega: Yeah. We currently have registered 300 vehicles in the MVP (Motor Vehicle Protection) program. We had about 167 take advantage of it this last hurricane. Commissioner Regalado: So, there's 167 that no trees fall on them. Mr. Noriega: Correct. Commissioner Regalado: Thank you. Vice Chairman Gonzalez: All right. We have a motion and we have a second, right? Chairman Sanchez: All right. There's a motion and there's a second. Commissioner Allen: Right, and -- City of Miami Page 102 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 Chairman Sanchez: Well, before we do that, it's a public hearing. Anyone from the public wishing to address this item, please step forward and be recognized. Commissioner Allen: Right. Chairman Sanchez: Seeing none and hearing none, it comes back to the Commission. Commissioner Allen: Right. Just one quick question, Mr. Noriega. Mr. Noriega: Sure. Commissioner Allen: What sort of revenue contribution will inure to the City? I'll try -- Mr. Noriega: Based on this current budget, it's a shade under $2 million. Commissioner Allen: OK, about two million. Well, was it one point -- Larry Spring (Chief Strategic Planning, Budgeting & Performance): We have 1.9 in our budget right now. Commissioner Allen: OK, 1.9 we -- OK, terrific. Mr. Noriega: Yeah. It stayed under two million. Chairman Sanchez: All right. Commissioner Allen: All right. Thanks. Chairman Sanchez: All in favor, say "aye." The Commission (Collectively): Aye. Chairman Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. Ladies and gentlemen, is there any other items before we go into recess? Commissioner Winton: Mr. Chairman, may I -- I'd like to just make a comment to kind of -- to keep everybody in perspective. The question was, how much you're contributing to the City? Commissioner Allen: How much is revenues -- Commissioner Winton: Shade under $2 million. We've had this discussion in Commission meeting. We've said, jeez, we don't have enough parking. We have a parking crisis on Southwest 8th Street, we have a parking crisis here, we have a parking crisis in Little Haiti, we have a parking crisis on 7th Avenue, so you need to build more parking structures. Well, I've got to have more money to build -- well, let's continue to give $2 million a year to the general fund of the City, so that's bondable $2 million a year. He's going to bond out 25, $28 million in today's economic environment, but he can't do that because you put it in the general fund. Well, we can't take it out of the general fund because we just voted to reduce the fire fee. It isn't -- it -- it's all tied together. Commissioner Allen: I agree. Commissioner Winton: It's all tied together, and it all -- every one of these things falls down to the taxpayer at the bottom line, and our job is to figure out how we juggle all these balls and City of Miami Page 103 Printed on 9/27/2005 City Commission Meeting Minutes September 8, 2005 figure out how we get all this stuff done that we need done, and so wiping out one may make us feel good and it may sound great completely, but you got to go get it from somewhere else, and I'm going to say for the 800th time, 70 million a year. Vice Chairman Gonzalez: In pensions. Commissioner Allen: Well, we'll be prepared -- Chairman Sanchez: Well -- Commissioner Allen: -- tomorrow morning, Commissioner Winton. Chairman Sanchez: Hey, but listen, listen, on that -- on the pension, the writing is on the wall. We have a $300 million liability -- funded liability on the pensions. The writing is on the wall. Commissioner Winton: Well, I hear it's -- Chairman Sanchez: All right. Listen, are there any other items pertaining to the budget that we need to discuss? If not, this Commission meeting stands in recess till tomorrow morning, 10 a.m., same budget time, same budget channel. City of Miami Page 104 Printed on 9/27/2005