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HomeMy WebLinkAboutCC 2007-09-11 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Tuesday, September 11, 2007 5:05 PM FIRST BUDGET HEARING City Hall Commission Chambers City Commission Manuel A. Diaz, Mayor Angel Gonzalez, Chairman Joe Sanchez, Vice Chairman Marc David Sarnoff, Commissioner District Two Tomas Regalado, Commissioner District Four Michelle Spence -Jones, Commissioner District Five Pedro G. Hernandez, City Manager Jorge L. Fernandez, City Attorney Priscilla A. Thompson, City Clerk City Commission Meeting Minutes September 11, 2007 5:05 P.M. BH.1 07-01092 Office of Strategic Planning, Budgeting, and Performance CONTENTS BH - FIRST BUDGET PUBLIC HEARING TO DISCUSS FISCAL YEAR YEAR 2007-2008 TENTATIVE BUDGET BEGINNING AT 5:05 P.M. BH.1 THROUGH BH.20 FIRST BUDGET HEARING Present: Chairman Gonzalez, Commissioner Sarnoff, Vice -Chairman Sanchez, Commissioner Regalado and Commissioner Spence -Jones On the 11 th day of September 2007, the City Commission of the City ofMiami, Florida, met at its regular meeting place in City Hall, 3500 Pan American Drive, Miami, Florida, for its first budget hearing session. The meeting was called to order by Chairman Angel Gonzalez at 5: 42 p.m. and adjourned at 11: 06p.m. ALSO PRESENT: Jorge L. Fernandez, City Attorney Pedro G. Hernandez, City Manager Priscilla A. Thompson, City Clerk Pamela Burns, Assistant City Clerk DISCUSSION ITEM FIRST PUBLIC HEARING TO DISCUSS THE PROPOSED MILLAGE RATE AND TENTATIVE BUDGET FOR FISCAL YEAR 2007-2008. THE PROPOSED GENERAL OPERATING MILLAGE RATE OF 7.2999 FOR THE CITY OF MIAMI FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008 WHICH IS EQUAL TO THE ROLLED -BACK RATE. CITY COMMISSION LISTENS AND RESPONDS TO CITIZENS' COMMENTS REGARDING THE PROPOSED MILLAGE RATE. ACTIONS BY THE CITY COMMISSION: 1.AMEND THE TENTATIVE BUDGET, IF NECESSARY 2.RECOMPUTE THE PROPOSED MILLAGE RATE, IF NECESSARY 3.ADOPT THE TENTATIVE MILLAGE RATE 4.ADOPT THE TENTATIVE BUDGET OR THE AMENDED TENTATIVE BUDGET AS NECESSARY 07-01092 Cover Page.pdf 07-01092 Prposed Budget FY 2008.ppt City ofMiami Page 2 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 DISCUSSED Chairman Gonzalez: Now we're going to start with the budget. First item -- I'm sorry, Mr. Mayor, you're recognized. Mayor Manuel A. Diaz: Thank you, Mr. Chairman. Good afternoon, fellow residents, Mr. Chairman, Mr. Vice Chairman, Commissioners, City Manager, City employees. Let me begin by proudly pointing out that although I am here to deliver my annual budget address, this process not only included our City staff and Pete Hernandez and Larry Spring and Michael Boudreaux have done a fantastic job, but as we have done during the past six years, it has also included all of you, making this a truly collaborative budget, andl want to thank you for that. It is important to provide some context of our past to measure how far we have come. It was only five years ago that our city finally emerged from state financial oversight. Our city had been plunged into bankruptcy. Our parks, our streets, and our neighborhoods went ignored. Instead, we had higher taxes, higher fees, higher millage rates. Taxpayers were asked to bail out the City, all while doing without the things that make a city worth living in. We put an end to that. We started with a bold idea. We would lift our city out of bankruptcy and financial ruin by creating a climate of economic growth. We would then take that growth and responsibly balance the need to reinvest in our long forgotten neighborhoods, while relieving the tax burden on the residents ofMiami. During the last five years, we exceeded these expectations and delivered a full one point reduction in our millage rate, saving the people ofMiami over $91 million. I then pledged to continue reducing the millage rate, and this proposed budget takes us further toward that goal. This budget reduces the combined millage rate from 8.9955 last year to a combined 7.8775. That is in excess of another one full mil cut, and it represents a cut of twelve and a half percent from the prior year, and this millage rate represents a 25 percent drop from the millage rate that Commissioner Gonzalez andl inherited. Quite simply, if you owned a homestead property in the City ofMiami on the day that Commissioner Gonzalez andl were elected, you are paying less City taxes today, and we have done this while not increasing fees and eliminating other fees, including getting rid of the fire fee once and for all -- Mariano -- saving taxpayers $8 million this year. Once again, we are presenting a budget that cuts expenses, this time to the tune of $53.5 million. We are proud of this, and the City Commission deserves a great deal of credit for your fiscal discipline, but responsible government does not merely cut for the sake of cutting while ignoring services. Responsible government invests wisely by making the required capital investments that will facilitate future economic growth by safeguarding the City's fiscal solvency and by ensuring the delivery of those services that make a City worth living in. Commissioners, you are right; we need more parks, and we know this because the people tell us. As a result, we have doubled our parks budget during my term, and we have already spent $119 million in capital improvements for our parks. This year, we will open Grapeland baseball, Grapeland Water Park, Little Haiti Cultural Park, Little Haiti soccer fields, and the Jose Marti Park gym so that all of South Florida can enjoy these signature parks in Commissioner Gonzalez, Sanchez, and Spence -Jones's districts, but we can't just answer the call to build more parks and not cut the grass. We need to allocate resources to staff them, maintain them, and give them programming. This budget calls for an additional $3 million to be spent on this because these new parks come at a price. Commissioner Sarnoff, you have been a leader in calling for more police officers to patrol our streets because, like all of us, you have heard the voice of the people who are telling us we need more eyes and ears on the streets to keep our crime down. This budget devotes nearly $5 million for an additional 25 police officers and 45 new public service aides. These 70 positions make it possible to have a total of 200 new law enforcement personnel. Commissioner, Miami on the streets fighting crime, but greater security and police come at a price. Commissioner Regalado, you have been a strong advocate of new union contracts because we cannot retain our police officers and firefighters if we do not pay them a competitive wage. In fact, all of us know that we were losing first responders to other jurisdictions paying higher salaries. These new contracts will cost us over $30 million, and this budget has $8.5 million to make sure that our first responders and service providers are properly compensated, and by law, we have to set aside $5 million to cover our post -retirement health benefits, and $1 million for this year's election. In sum, these expenditures for parks, police, City ofMiami Page 3 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 higher salaries, post employment health benefits, and elections total $22 million, and it is important to note once again that these expenses are either mandated by law or expenses that you, as a Commission, have previously approved. Now let's talk about rollbacks. If you want to go to rollback plus three percent, you would have to reduce an additional $8 million. I don't think anyone here would suggest that we rescind, even if we could, the salary increases that you have already approved for police, firefighters, and service providers. What about rollback plus five percent? That's a total reduction of $13 million. Again, would we rescind the salaries and not hire the 70 new positions or not create the 70 new positions that we're creating in the Police Department in this budget? Rollback plus seven percent; that's a total of $18 million in reductions. Again, the salaries, the 70 law enforcement positions, and the post retirement health benefits contribution. Finally, rollback plus nine percent, a total of $22 million. Again, salaries, additional police, post -retirement health benefits, additional parks, and elections. Or worse yet, would we consider dipping into reserves to pay for these and negatively affect our credit rating, taking us back to the days when we were in junk bond status? Also, keep in mind that as a result of a settlement of the fire assessment case, we will have to expend an additional $15.5 million, and by the way, this year, this is the only amount that we will tap into our fund balance. Another way to say you cut your taxes is to raise fees. This is a common swap in many other cities, but we have not done that. Take solid waste, for example. Our costs have increased since 2001, but we have not increased the solid waste fee. In fact, we currently subsidize this service by $13 million. If we were to increase our solid waste fee to match the County's, which has a much inferior service than the one we have -- they charge $439 -- we would make up 8 of the 13 million -- of that $13 million in deficit, but our platinum service comes at a heavily subsidized price. Let's look at another area where other cities charge for services that we provide for free. I recently received a letter from (UNINTELLIGIBLE), whose children attended our free Douglas Park summer camp. She tells me how appreciative she is for this free program because she used to spend hundreds of dollars to send her twins to other camps, and now she gets it for free, and she goes on to say this is when I feel that my tax dollars are working. Well, (UNINTELLIGIBLE) and all the parents of the 3,500 children that attended our summer camps, your tax dollars are definitely working, but free summer camps come at a price. Like I said earlier, it was not too long ago that this city was insolvent, and while our responsible fiscal policies have given us unprecedented growth and higher bond ratings, making our days of bankruptcy long gone, what is not long gone is the abandonment of our neighborhoods that resulted from this bankruptcy forcing us to play financial catch-up for all these years of fiscal neglect. We had to fund parks that were abandoned and ignored. We had to hire new police officers to patrol our streets and pay them competitive salaries so that we would not lose them to other jurisdictions. We had to fund our first responders and firefighters, whose stations were in major disrepair, and who were borrowing equipment from other departments because of the City's financial constraints. We lifted hundreds of families out of poverty and provided thousands of new homes through what is recognized by other mayors today as the best anti poverty program in the entire nation. We instituted a billion dollar capital improvements program, where we have already to date spent almost half a billion dollars to repair our streets, our sidewalks, clean our sewers, and help us prevent flooding because routine maintenance work had not been done in years. We had to make up for lost time and bring back all the services that make up a city. These are the services people demand. These are the services that people expect, and these are the services that we have delivered, and why should any of this matter? A recent New York Times article reported on the attitudes of young workers, the ones who will take our jobs one day, and the single most important factor in attracting these workers is not what they will do, but where they will do it. The article goes on to state that in this past decade, out of every single US (United States) city, only 14 of them saw more young workers move in than move out, and I'm proud to say that Miami was one of those cities, and that is something that we should be proud of. To be a competitive city of the future, to attract young workers, and to make life better for those of us who are already here, you need to have the highest possible quality of life to make your city a desirable place to live. We could go back to the days before our economic growth, back to the days of bankruptcy, perhaps as some in Tallahassee would have if they have their way. That is where we would end up, where people leave our city because it's not a place worth caring about, City ofMiami Page 4 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 and remember, this is the Miami that we used to have, the Miami we have spent the past six years turning around, but responsible government doesn't just cut for the sake of cutting. Responsible government acts as stewards of the people's money in a prudent and balanced approach to giving it back, investing it wisely, and creating a city worth living in. We need to continue on this course, a city where people are moving back, a city that people care about, the city that we now have. Thank you, Mr. Chairman. Chairman Gonzalez: Thank you, Mr. Mayor. All right. Let's begin by -- Pedro G. Hernandez (City Manager): Mr. Chairman. Chairman Gonzalez: Yes, sir. Mr. Hernandez: If you allow me one minute -- Chairman Gonzalez: Yes, go ahead. Mr. Hernandez: -- before our Budget director proceeds with the presentation of the budget. Understanding the complexity of this budget, I went ahead and prepared last evening just a one pager that I've given all of you to try to understand the concept of what we're trying to do. As you know, we're mandated by the State to rollback the millage, and that millage will now be 7.299, which is a one mil reduction over what we currently have this year. That reduction in millage to 7.299 equates to $31.6 million reduction in property taxes. Working with all the departments and also with your support and contribution, we continue to identf additional reductions up to an additional 22 million. The total of the 31.6 and the additional 22 million come up to 53.6 million, which happens to be equivalent to the nine percent discount of rollback millage that the State had expressed their desire for us to achieve. However, we have taken a more, I would say, careful approach towards preserving the City, and with those additional reductions of 22 million, we're, in essence, buying back the following: We're proposing to pay for other post -employment benefits, which is not a requirement, that's 5 million. We're paying for elections, 900,000; mandated fleet replacement, 4.8 million; parks, we're adding 2.8 million, as the Mayor mentioned, you know, the rationale as to why that's 2.8. We're also proposing to add additional police, 25 police officers and 43 PSAs (Public Service Aides), at a cost of 4.6 million, and on top of that, we're adding a contingency of 5 million, which is actually required by our ordinance. When you add all of that up, it consumes the 22 million of additional reductions. We are paying for the fire settlement out of the fund balance -- is the only monies coming out of the fund balance. If we pursue this approach, we project that at the end of fiscal year '07/'08, we will have an estimated fund balance of a hundred million. That, I would say, is very healthy for the City, and it will continue to present to the bond rating agencies a good financial status. Also keep in mind that we have eliminated the fire assessment fee. This sort of simplifies the approach, but think to make it even easier to understand, we have to make it similar to the budget at your own house. You need a certain income a month to pay for your rent, to pay for the car, to pay for the food You can't be tapping into your savings account every month because if you do that to operate, you'll go bankrupt, and the City is somewhat alike. I feel that this is a very prudent approach that provides savings to the residents, but at the same time, ensures that we maintain the same level of services that we have up to now, that we maintain a strong fund balance, we don't have any layoffs, and we're complying with the State mandate. With that, I thank you, Mr. Chairman, Commissioners. If you can allow Mr. Boudreaux to proceed with the budget presentation. Chairman Gonzalez: Thank you, Mr. Manager. Yes, of course. Michael Boudreaux: Mike Boudreaux, director, Management & Budget. Good evening, City Commissioners, Mayor, City Manager, and the residents of the City of Miami. This evening, before I present to you the fiscal year 2008 proposed budget for the City ofMiami, I need to first City ofMiami Page 5 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 announce some changes to BH.3 that was passed out to each of you. I'll go quickly over the changes that were made to BH.3. On page 1 of 6 of the resolution that you just received, please see the change made to Section 1 to indicate October 1, 2007 to September 30, 2008, and on the same page, please see the change made to the amount allocated to the Board of Commissioners from two million two fifty to two million. On page 2 of 6, please see changes made to the amount for the Office of Auditor General from 964,842 to 914,842; Risk Management, from 54, 068, 910 to 52, 420, 609, and to nondepartmental, NDA (Nondepartmental Account), from 46, 427, 673 to 48, 375,974, and applicable changes made to Section 2 to indicate fiscal year ending September 30, 2008. On page 3 of 6, please see changes made to Section 3 to indicate fiscal year ending September 30, 2008; in Section 4, to indicate the same period, fiscal year ending September 30, 2008; in Section 5, to indicate the fiscal year ending September 30, 2008, and then finally, on page 4 of 6, please see changes made to Section 6 to indicate fiscal year ending September 30, 2008. Thank you. I'll start with the budget focus. The focus of the fiscal year 2008 proposed budget was to prepare a structurally balanced general operating budget with reoccurring revenues supporting reoccurring expenditures; to provide a budget which conformed to generally accepted accounting principles, as applicable to local governments; to present a budget using current financial resource measurements and providing allocations based on a modified accrued basis of accounting, as reported in the City of Miami's Comprehensive Annual Financial Report, and to receive feedback to ensure the proposed budget is consistent with the needs of our citizens. The budget process. The fiscal year 2008 budget process started on April 26, when the Mayor issued the State of the City Address. Since this time, I have met with the Mayor, City Manager, and Chief Financial Officer to discuss the financial outlook for the City ofMiami in preparing the fiscal year 2008 budget. City departments' budgets were distributed in subsequent meetings held with department directors to discuss the upcoming fiscal year and the issues facing the City in 2008. The Office of Strategic Planning, Budgeting, and Performance generated the first draft of the budget on July 27, which was subsequently reviewed by the Mayor and City Manager. On August 20, a workshop was held with the City Commission to present the budget outlook and to discuss issues facing the City in fiscal year '08. Additional one-on-one meetings were held with each City Commissioner to discuss the preparation of the budget and to receive additional input. Today is the first public budget hearing to present the proposed fiscal year '08 budget. A second public budget hearing is scheduled for September 27 to present the budget based on citizens' feedback and to consider it for adoption. Major budget issues included in the fiscal year 2008 proposed budget are property tax reform as a result of State of Florida House Bill 1B, implementation of Governmental Accounting Standards Board statement number 45 of the post -employment benefits, and elimination and settlement of the fire assessment fee. House Bill IB was passed by the Florida Legislature on June 14, 2007. This House bill contained two provisions; one provision to maximize property tax revenue and another to limit property tax revenue growth in future years. In FY (Fiscal Year)-08, the City of Miami will be required to calculate a maximum operating millage rate, as prescribed by the Florida Department of Revenue. This maximum millage rate will be based on the City's rollback rate in fiscal year '08. House Bill IB is not applicable to the debt millage rate. As a result of House Bill 1B, the City's maximum operating millage rate is limited to its rollback rate of 7.2999 mils. This millage rate represents a reduction of 12.83 percent, or 1.0746 mils less than the prior year adopted operating millage rate. This also represents a reduction in property tax revenues on real and personal properties of 31, 623, 040, based on the operating millage rate, which has been proposed -- and this millage rate was based on the millage rate that should -- that had House Bill IB not been approved, that would have been the re -- the total reduction, excuse me. Based on a haphazard revenue of homestead properties, the reduction on the City of Miami millage rate represents an average ten percent reduction in property tax and a reduction of seven and a half percent average reduction on a countywide millage rate currently proposed at 22.1986 mils. House Bill IB does allow the City Commission to adopt an operating millage rate under the following conditions. The operating millage rate can be increased to not more than ten percent of its maximum rate with a four fifths vote of the City Commission. A higher millage rate in excess of ten percent up to not more than the prior year adopted millage rate can be adopted with a unanimous vote of the City Commission. A review of the above chart indicates City ofMiami Page 6 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 how the operating and debt millage rate has changed from a total millage rate of 9.8425 in fiscal year 2004 to a proposed total millage rate of 7.8775 mils in fiscal year '08. If you look at page 147 of the fiscal year 2008 proposed budget book, you will see a report on the 28-year history of the City's total millage rate since fiscal year 2--1981. The total millage rate proposed for FY-08 represents the lowest total millage rate since this time. Another issue impacting fiscal year 2008 includes the implementation of GASB (Governmental Accounting Standards Board) -45 other post -employment benefits, also known as OPEB. OPEB will require for the first time the City ofMiami to show on its financial statements the accrued liabilities of its retiree medical plans and other post employment benefits provided. Starting in fiscal year '08, the City will be required to provide a financial plan to fund this requirement in a similar manner required for its pension benefits. Like most similarly sized municipalities, the City ofMiami would have to meet its actuarially determined unfunded liability and contributions made to this liability in the fiscal year. The City will make its first required annual contribution in fiscal year 2008. The amount allocated in fiscal year 2008 proposed budget is $5 million. However, the actuarially determined liability has not been determined as of this time. The FY-08 proposed budget includes the elimination of the fire assessment, which was $4.5 million in fiscal year -- which was revenues of $4.5 million in the general fund in fiscal year 2007. This will require the general fund to provide allocations and support -- the elimination of this assessment will require the general fund to provide allocations in support of Fire -Rescue capital requirements in future years. The FY-08 proposed budget does not include an allocation for this requirement, and review of this requirement is ongoing pending the outcome of the return of the fire assessment settlement that is currently at 3.75 million. Once known, an amendment to the budget will be proposed upon return of those funds. The FY-08 proposed budget also includes the fire assessment settlement payment of 50.55 million. I would like to go over the general fund. Total general funds are estimated at 523, 713, 803. This represents an increase of 15, 577, 617, or 3.07 percent over the prior year adopted budget. As you can see from the above graph, property taxes represents the largest category of revenues in the City at 49 percent, compared to 51 percent in fiscal year 2007 adopted budget. The next largest category is charges for services at 15 percent, compared to 70 --17 percent in fiscal year 2007. If you look at pages 79 through 88 of the FY-08 proposed budget book, you will see a breakdown of the FY-08 proposed revenues with related percentages, along with comparisons to the FY-07 adopted budget, the FY-07 revised budget, and the FY-06 actual collections. Like I stated previously, total revenues are anticipated to increase by $15.6 million over the prior year adopted budget. This increase is lower than the total increases realized in fiscal years '06, which was 48.6 million; fiscal year '05, at 28.8 million, and FY-04, at 46.3 million. A majority of this total revenue increase is in the area of property taxes, which is anticipated to increase by 5.65 million in FY-08 compared to prior increases of 41 million in FY-06, 35.3 million in FY-05, and 19.6 million in FY-04. Another area contributing to this lower increase over the prior year is the elimination of non -ad valorem revenues from fire assessment, which contributed $4.5 million to the FY-07 adopted budget. Areas contributing to increases to the general fund include anticipated increases in FPL (Florida Power & Light) franchise fees of $7.5 million as a result of pending changes to the current FPL contract and subsequent change in the calculation method of FPL fees. Also contributing to the FPL fees increase is a review of the prior four-year collections and its current trend. Increases in waste haul and permit fees of 3.1 million as a result of anticipated increases in the number of multifamily residential units serviced by commercial haulers, as well as additional efforts by the City's Solid Waste Department to collect outstanding monies due to the City. Another area which contributed to a decrease in general fund revenues is the method for which local option gas tax will be recorded in the general fund. In FY-08, the receipt of local option gas tax revenues will be recorded into the local option gas tax fund in the City's special revenue funds and the applicable bond payments will be made and the remaining amount transferred into the general fund. This will result in 76 percent of the total anticipated receipt of $7.4 million being transferred in the general fund after transfer is made to the special obligation bond fundfor payment of the related debt. The related debt is anticipated at $1.8 million. There's also the impact of the increase in re -- funding increase in revenues in the general fund of the use of fund balance in support of the fire assessment settlement. Total general fund City ofMiami Page 7 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 expenditures are proposed at 523, 713, 803. This also represents an increase of 15, 577, 617, or a 3.07 percent over the prior year adopted budget. As you can see from the above graph, allocations in support of public safety represents the largest expenditure category in the City at 39 percent compared to 37 percent in fiscal year '07. The next largest category is in the area of pension, at 12 percent, compared to 17 percent in fiscal years [sic] 2007. The category of "other" is at 13 percent of the total general fund expenditure budget. However, it consists of 11.8 million in planning and development support compared to 11.1 million in FY-07, $7.5 million to public facilities compared to 7.4 million in FY-07; 21.7 million to Parks & Recreation, compared to 20 million in FY-07, and 24 million to nondepartmental compared to 12.3 million in FY-08. Nondepartmental consists of the Economic Development Department at 1.6 million, Capital Improvements Administration of 3.3 million, Citistat, 395, 000, Grants Administration at 592, 000, and the Miami Office of Sustainable Initiatives at 302, 000, and of course, it also includes the $15.55 million allocation for fire assessment settlement and the $5 million for OPEB. Additionally, if you look at pages 91 and 92 of the FY-08 proposed budget book, you will see a further breakdown of the FY-08 proposed expenditures with related percentages along with comparisons to the FY-07 adopted budget, the FY-07 revised budget, and the FY-06 actual expenditures. Sure. Commissioner Sarnoff Why would you include the fire settlement in that category? Mr. Boudreaux: In nondepartmental? Commissioner Sarnoff Yeah. Mr. Boudreaux: Because it's not identifiable to a particular department. It would go into an area called "nondepartmental" Like I previously stated, the total FY-08 proposed general fund expenditure budget is anticipating an increase by 15.6 million over the prior year adopted budget. According to the City's financial integrity ordinance, the general fund is structurally balanced with reoccurring revenues supporting recurring expenditures with the only one-time item, the payment of the fire assessment, using the general fund balance. This increase is compared to increases of $33.2 million in FY-06, $30.3 million in FY-05, and $39.1 million in FY-04. The primary reduction that is in this budget includes a $19.1 million decrease in pension costs as a result of the change in asset valuation method in the FIFO (Firefighters and Police Officers) pension from the previous market book ratio method to the 20 percent smoothing method. However, this decrease was partially offset by a $200, 000 increase in pension administration costs from $4.7 million to $4.9 million. The City also eliminated 35 full-time vacant positions at a total reduction of $1.9 million, restricted the field of 59 vacant positions to a later period in FY-08, at a total cost reduction of $1.8 million, and reduced the allocation to Risk Management by $9 million, based on a review of prior year allocations compared to actual costs over the prior four-year period. There's also provided additional reductions in personnel costs to areas such as temporary and part-time employee costs, along with other personnel costs, such as overtime and applicable allowances of $6 million; reduced citywide operating expense allocations by a total of $15.65 million over the prior adopted budget. Primary reductions occurred in the areas of other contractual services, repairs and maintenance, contributions to other funds, and other current charges and obligations. Many of these reductions were provided by City department directors with an emphasis to not reduce City services. It also include a review of average four-year costs compared to prior year budget allocations. In total, reductions include all City departments and supporting agencies. The total reduction in the fiscal year '08 proposed budget is currently at $53.5 million. New allocations in the FY-08 proposed budget includes $2.8 million to the Parks & Recreation Department for the planned opening of new facilities at Fern Island [sic] Park, Grapeland Park ball fields, Grapeland Water Theme Park, Little Haiti Park, Maceo Park, and what's missing from my slide, Jose Marti Park. Allocations of $5 million, as part of the unfunded liability requirement under OPEB; 900, 000 for the 2007 general elections in the City Clerk's Office; 420, 000 for a slab covered trench project in the Public Works Department; $740, 000 for four new Geo Vacuum street sweepers in the Solid City ofMiami Page 8 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Waste Department; 4.8 million for citywide vehicle replacement, primarily in the Police Department and City general fleet, and once again, $15.55 million for payment of the fire assessment settlement. There is also availability in the contingency reserves to add 25 police officers and correction -- 45 public service aides at a total cost of $4.64 million. Chairman Gonzalez: I do have a question. Mr. Boudreaux: Sure. Chairman Gonzalez: Are you -- do you have consider on your budget capital expenditure for fire -- Mr. Boudreaux: We are still -- Chairman Gonzalez: -- for equipments? Mr. Boudreaux: -- we still have not made an allocation for that particular need. We are reviewing the return of funds from the fire assessment payout of the 3.75 million that we're waiting to see if we would get that return, and then we would use that to help support the Fire capital requirements. Chairman Gonzalez: But in case we don't get that? Mr. Boudreaux: But in case, we'll have to come back to the Commission with another plan on how we're going to fund that requirement. Chairman Gonzalez: OK, because that needs to be funded. Commissioner Sarnoff That's a pretty safe bet, though. Chairman Gonzalez: Yeah. Commissioner Sarnoff I mean, that money's there. I mean, it's not -- Mr. Boudreaux: We feel so. Commissioner Sarnoff -- in your hands, but that's -- in a lawyer's parlance, that money's there. Mr. Boudreaux: Yes. Commissioner Sarnoff OK. Chairman Gonzalez: All right. Thank you. Commissioner Regalado: Well, why would you not place it on the budget? The money that has been returned is already on a trust fund in the lawyer. Mr. Boudreaux: Well, I understand the question, but I tend not to add anything to the budget until we know for sure that we're going to receive it. Once we know that, we will go on and make the necessary adjustment. Commissioner Regalado: Chairman, can I ask a question? Chairman Gonzalez: Yes, go ahead. City ofMiami Page 9 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: What is fleet? What's the description of fleet -- Vice Chairman Sanchez: Its contract. Commissioner Regalado: -- vehicles, $4.8 million? Mr. Boudreaux: That in -- that's --fleet includes replacement of police vehicles and placement of the general citywide fleet for all departments. We have a requirement to replace police vehicles as -- Vice Chairman Sanchez: Contractual. Mr. Boudreaux: Excuse me? Vice Chairman Sanchez: Contractual. Mr. Boudreaux: Contractual requirement, to replace police vehicles, and we also included the cost of replacing citywide fleet, some general fleet. Commissioner Regalado: No. The reason is -- I understand, and everybody does, that we need to -- by contract, we need to replace police vehicles every three years, right? That's -- Mr. Boudreaux: No. The contract calls for -- Commissioner Regalado: Right. Mr. Boudreaux: -- a certain replacement amount every year. Commissioner Regalado: OK, but for two years in a row -- actually, for three years, I, personally, and all the members of the Commission, but -- personally, I think, in three years ago, I was able to bring a resolution. We have been asked -- asking the Administration to buy more hybrid cars for general purposes of the City in terms of the need to reduce consumption of fuel. My understanding is that a few were bought last year, but on these general service vehicles, how many are scheduled to be hybrid or fuel performance vehicle? Mr. Boudreaux: Unfortunately, Commissioner, I don't know exactly the breakdown of what will be considered hybrid vehicles and what will be considered regular, gas powered vehicles. I can get you that information -- Commissioner Regalado: OK. Mr. Boudreaux: -- back to you, so you can -- Chairman Gonzalez: I believe the Manager -- Mr. Boudreaux: -- see a complete breakdown. Chairman Gonzalez: -- has an answer. Commissioner Regalado: Maybe -- Chairman Gonzalez: Mr. Manager. Commissioner Regalado: -- OK. It's very -- City ofMiami Page 10 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Hernandez: Commissioner, from -- Commissioner Regalado: -- easy. Half may be police car; cannot be hybrid; we all know that. They need high-performance, so, I mean, they need what they need. The rest? Mr. Hernandez: From the rest, which I think is 25, 27, in that range, I believe that 10 are going to be hybrid this year, and we plan to get 20 hybrid the following year, and it's a question of balancing the numbers because, obviously, the hybrids are -- today, the initial cost is higher, and even the cost to maintain is higher, but we know that there is a -- there's a benefit to the City to go in that direction, so we're doing it in that fashion. We're getting as many as we can on a yearly basis. Commissioner Regalado: There is a tax rebate on hybrids, and also there are subsidize from the EPA (Environmental Protection Agency) and grants from the EPA, national and Florida, and I think it's important to send a message because ifyou keep buying the same high-performance, or maybe low -performance car for the fleet, I guess that the whole thing about being green doesn't apply to us because, you know, we need to follow with the example, so I'm just trying to determine the number, because some people might think, well, you know, the City is going green. It means that all the vehicles are hybrid. The other thing -- and maybe the Manager can -- since he's talking to the GSA (General Services Administration), I cannot still understand the deal with outside service, NAPA (National Auto Parts Association), and our mechanics in the GSA in terms of duplicating the service. Are we making some kind of reductions to see if we can reduce the cost of service and parts and NAPA and employees, City employees? Kelly Barket: Kelly Barket, director of GSA. We are not making reductions in staff. We are making reductions, but we're also including biofuel in the coming year with hybrids, and that's going to give us the greener effect for the City ofMiami, but we're not making a reduction in staff for the mechanics of the garage. Commissioner Regalado: No, no, I'm not saying the staff. I'm saying the outside contractors, the NAPA. Mr. Barket: No. NAPA will continue to supply us. We haven't made a reduction. We've reduced some of the materials of outside vendors, such as transmissions, but not NAPA in itself. Commissioner Regalado: So we haven't done anything in terms of reductions. Mr. Barket: No. We've made reductions in outside vendors, not NAPA. NAPA is more for the materials that we use within our garage, but transmissions, bodywork, et cetera, we've made reductions there. Commissioner Regalado: OK. Chairman Gonzalez: You may continue. Mr. Boudreaux: Oh. Vice Chairman Sanchez: No. You know -- Commissioner Sarnoff Michael -- I'm sorry. Go ahead. Vice Chairman Sanchez: No. Go ahead. Commissioner Sarnoff The reason you're bringing the fire fee into the outflow, you're taking that from the reserve fund, correct? City ofMiami Page 11 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Boudreaux: Yes, we are. Commissioner Sarnoff You're just demonstrating it as having gone through the general fund? Mr. Boudreaux: Yes. It will show up as an expenditure in the general fund for next year, if all of the $15.5 million is paid out next year. Vice Chairman Sanchez: My question, Mr. Budget Director, is on the nondepartmental account, when all said and done, you -- it's about ten million. If you take the 4.6 million, which is the 25 new police positions and the 53 PSAs (Public Service Aids), that's a ballpark figure of about 6 million. Now, that could be used for shortfalls, correct? Mr. Boudreaux: Yes. I think the City Manager mentioned that we had earlier proposed to use the required contingency reserves as part of the financial integrity to help offset the cost of the payout of the fire assessment settlement. We're now going to be able to replenish that back and have that contingency reserve available in fiscal year '08. Vice Chairman Sanchez: In the reserve. IfI were to state that we want to maintain the reserve around a $100 million, we could say that that is to protect the integrity of the bonding agencies? In other words, if we go lower than 100, 000, which I think that we could go as low as, what, 80 million? Mr. Boudreaux: Right now you have a requirement, under the antideficiency and financial integrity ordinance, to have it at least at 80 million. Vice Chairman Sanchez: 80 million. Mr. Boudreaux: Estimated. Vice Chairman Sanchez: But if we went lower than 100, 000, because that's going to be -- at the end of the day, that's going to be a discussion on this Commission -- would it jeopardize the bonding ratings that we have? You know -- Mr. Boudreaux: Any negative -- Vice Chairman Sanchez: -- we've gone from junk bond status to AA ratings. Mr. Boudreaux: I don't exactly know what type of rating it will effectuate, but at the same time, if you do reduce your fund balance in your general fund any reduction is looked at negatively by the bond rating agency, and they want to know what you're going to do to correct it. Commissioner Sarnoff I -- Commissioner Regalado: Do you know the reserve of the County? Mr. Boudreaux: Not at this time, sir, no. Commissioner Regalado: No. Do you know the reserve of the County? Mr. Hernandez: Doesn't compare to ours, sir. Commissioner Regalado: That's my -- Mr. Hernandez: Does not compare to ours. City ofMiami Page 12 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: -- point. With a seven billion -- Mr. Hernandez: Yeah. Commissioner Regalado: -- budget, what's the reserve, a hundred and --? Mr. Hernandez: It's -- I venture to say that it's probably maybe less than ours. I don't know what the latest figure is now, but before -- Commissioner Regalado: I think it's 120. I think it's 120. Vice Chairman Sanchez: They got -- Mr. Hernandez: They should be at 500. Vice Chairman Sanchez: -- enough problems on their own. Commissioner Regalado: Huh? No. I mean, that's the point, that they are taking in this budget, as we speak, money from the reserve, and on a $7 billion budget, it's, I would think, really dangerous to go and dip into the reserve if the reserve is almost next to ours in terms of numbers, so I don't think that we should present a -- the -- you know, their Armageddon or scenario if we were to go into the reserve, as we did for the fire fee for a limited amount of money, so -- Mr. Boudreaux: That's correct. Mr. Hernandez: Commissioner, the concern that we have is that we don't know what's going to happen in January. We don't know -- well, we probably have an idea that the State Legislature, in their next session in '08, they're probably going to want to require additional cuts. We figure that the '08/'09 year will be more severe than this one, so I think it would be prudent to maintain the amount that we're proposing to maintain in the reserves. We're looking to harder times. Commissioner Regalado: Andl'm not saying that, but remember that by -- if -- even if we have a charter -- a County charter amendment to have an elected property appraisal [sic] by the year '08/'09, the appraisals on the commercial properties in the City ofMiami would have skyrocket, and the amount of income of the City, of the County on commercial properties will be extraordinary, I promise you that, because as we speak today, the commercial properties have been appraised even at a hundred percent level more than the year before, so you know, there is not that doom and gloom scenario, even if the people decide, which I doubt it, to approve the Constitution amendment in January, so I'm just saying that it is important that we understand that we need to figure out here some cuts and some benefits for the people in terms of services and in terms of money for their pockets. Vice Chairman Sanchez: Andl'm all for that, if you have a plan to do that. If you want -- Commissioner Regalado: Oh, I do. Vice Chairman Sanchez: -- want to dip into the reserves, you have a plan, I'm willing to listen to it. Commissioner Regalado: No, I do, and it doesn't have to do with the reserves. As a matter of fact, I do. I have some question. Number one, I think that we should abolish the Economic Development office, and the reason for that is because we have very, very good agencies throughout the City, especially we have the CRAs (Community Redevelopment Agencies), we have Downtown Development Authority, we have Community Development, who, by the way, City ofMiami Page 13 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 used to do this in the past, the economic development part of the City. That is a budget of 1.5 -- almost $1.6 million. We just created the Miami Office of Sustainable Initiative, and the director is the director of Grant Administration. I think that we could do savings there. We could do savings if -- Vice Chairman Sanchez: How much is their budget? Commissioner Regalado: It's -- both, like more than $300, 000. One is 400, 000, the other one is $300,000 -- Vice Chairman Sanchez: And you're -- Commissioner Regalado: -- so it's a combined -- Vice Chairman Sanchez: -- saying abolish both or combine them? Commissioner Regalado: Combine, to combine. Vice Chairman Sanchez: So that would be -- which budget do you want to keep? Commissioner Regalado: To reduce at least half -- at least $200, 000, to -- Vice Chairman Sanchez: OK. Commissioner Regalado: -- reduce $200,000 of 600 -- or $700,000 -- no, $900,000. That's -- Vice Chairman Sanchez: That's two -- that's 1.8 so far. Commissioner Regalado: So I believe that in Communications, you have a large budget. I don't believe that, in Communications, you can argue that we have -- I think that the main cost -- I would think that the main cost of Communication [sic] is because of the City ofMiami station, TV (television) station. I believe that we have -- or the City have adopted the wrong philosophy in the station that broadcast the City information. I believe that we have wanted to be -- maybe Kelly can -- an entertainment television outlet, but we are an information television outlet, andl will tell you that we can -- there's no need to buy or produce program because we have public hearings that can be air and reair throughout the programming of Channel 77. I believe that we should diversift because some people have opted for satellite, and we don't have access to satellite, nor we will ever have, because we are a local outlet, and by law, we cannot get access to satellite, so we have to diversin, ourself, so these are the things that -- Vice Chairman Sanchez: Wait. That's a 1.3 million -- Commissioner Regalado: Yeah, but -- no. Vice Chairman Sanchez: How much are you going to cut there? Commissioner Regalado: It's 1.3, but no one is asking to cut or to abolish the Office of Communications; that's impossible, but what I'm saying is that we can make reductions in terms of production costs, in terms of programming, and use more different videos that we have of meetings that are of the interest of the citizens. As far as I know, I don't know what the Communications Department has done. I don't know what it does, I really don't, and should know about communications. I'm in communications, but I'm just saying this just by switching on the channel. I -- we are not in the business of entertaining. We are in the business of information, period, because we cannot compete with the cartoon channel, with kid programming. We cannot compete with, you know, CNN (Cable News Network) for news. We City ofMiami Page 14 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 cannot compete with the History Channel, or the Discovery Channel, for that matter, with programs that would appeal -- people would go to those outlets to look for those programs. People come to us because they are political junkies. They want to know what is going on in the City. They want to know how the City meetings go, and they love -- there are people that love to tune in to watch the Zoning Board the Planning Board. People like that kind of thing, so that is something to consider for this Commission in today's hearing and in the days to come. Commissioner Sarnoff Mr. City Manager, I would sort of like an answer to Commissioner Sanchez's question, andl would like to take a different route than you're thinking of today. The question he asked was what would happen if we dipped into the reserve, would that affect our bond rating? Because that would be a very important answer to me that -- and the best educated person I'd like to hear answer that, if it was three million, if it was five million, if it was ten million, and before you answer, Larry, the reason say that -- andl know the approach you're taking is hoping that the budget ax happens in the '09 budget year versus this one, butl question whether the more scholarly approach would be to demonstrate to Tallahassee that there were these nine percent budgets reductions were done, and the citizens did reap some of the benefits back, and that's why I was more than willing to sit and go through -- I was watching Commissioner Sanchez starting to go, all right, now you're at 1.7; you're at whatever, and what I was doing here very simply was looking at who didn't cut their budget, but who raised their budget, and you know, for instance, Mr. Manager, $150, 000 you increased your budget; Office of the City Clerk, $924, 000; Communications, $62, 524; Building, $310, 000; Public Facilities, $35, 000. I'll leave Fire out of it because we could figure out where they got it. Police went up, as I hoped they would, and I'd like to see them go up higher. Office of Grants Administration, $52,188; Office of Zoning, $876, 000. I mean, unless I'm reading this wrong, there were some substantial cuts, but there were some substantial increases, andl just query why it is we're increasing budgets when we're asking others to take deep cuts. Larry Spring: Commissioners, Larry Spring, chief financial officer. I'll address your first question, which is regarding the use of fund balance and its correlation to our bond rating. Alone by itself dipping into our reserve is not going to reduce our bond rating. However, it is a -- one of those collateral things that are included in analysis that the bond rating agencies do. One of the bright and shining stars of this city is the fact that we have such a high percentage of reserve versus our operating budget in contrast to the County. When you look at a similar hundred million dollar figure versus a $7.4 billion budget, and a hundred million dollar figure compared to a half a billion dollar budget, it's one of those things that stands out. The other component about the fund balance usage is the fact that we have a ordinance. We have our financial integrity ordinance that was passed as a result of the State oversight. The fact that the City has maintained compliance with its own imposed rules is something that stands out again in the bond rating agencies' mind, and it helps to keep and actually, in this last year, increase our bond rating in two instances this past year, so that's -- you know, alone by itself the dip won't do it, but it does -- it will have an impact, and it is a question that they focus on. I had to do conference calls with them recently because of the stuff that happened with the CRA in the last week. It's -- even though it was a CRA matter, they still asked the question: Where are you? What's your reserve in the upcoming budget, andl know I'm going to have to have -- do some more calls in the next coming weeks, so it's a question and it's something that they focus on. Commissioner Sarnoff No, andl appreciate that, Larry, andl question when probably California went through Proposition 13, and they went through the same fiscal realization. I'm not suggesting we need to go into reserve, butt guess what I am saying probably reasonably inartfully [sic] is there's two tacks you can take here. You can reduce it nine percent and not give the citizens back that reduction, andl suspect Tallahassee's not going to be very impressed, or we can reduce it the nine percent and really see if we can give back some significant money so that come January or February of this year -- I don't know when they reconvene. I don't know that they will reconvene and they -- in emergency session -- that they don't come after us, and they say the City ofMiami really did some good faith, because I don't know that they're going to City ofMiami Page 15 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 say that right now. I know we cut it nine percent, but then we spent it somewhere else, andl know those were all very laudable things we're doing, but I think they're looking to see the citizens, in their own bank accounts, reap the benefits. Commissioner Regalado: Can I ask where is here NET (Neighborhood Enhancement Team) and Code Enforcement? Mr. Hernandez: NET is -- Vice Chairman Sanchez: Nondepartmental. Commissioner Spence -Jones: Nondepartmental. Mr. Hernandez: -- nondepartmental. Commissioner Regalado: And why is that? Mr. Hernandez: Michael. Mr. Boudreaux: NET and Code Enforcement were established as special revenue funds, so they sit in a special revenue fund of the City and their items are trans -- and their cost is transferred out of the general fund Commissioner Regalado: So English, please. Mr. Boudreaux: In English, let me see. Commissioner Regalado: What you're saying is that you don't know how much -- Mr. Boudreaux: No. Commissioner Regalado: -- they cost because they generate income for the City? Mr. Boudreaux: Well, what I'm saying is that because they sit in a separate fund that's separate from the general fund, the general fund allocation is a transfer to the fund for which these two departments sit in, and that their operating expenses are incurred in this special revenue fund not in the general fund Commissioner Regalado: But what would they be separated? I don't understand. Mr. Boudreaux: This is something that walked into, and have asked the same question. We are looking at -- Commissioner Regalado: But do you know -- Mr. Boudreaux: I mean, as -- Commissioner Regalado: You're the expert. Mr. Boudreaux: -- it -- as it stands right now, we are looking at that situation to see why exactly they are sitting separate from the general fund Mr. Spring: Larry Spring, chief financial officer. One of the reasons in the past -- and it is something that we're considering changing now because it's the same source of funds at the end of the day -- was they -- the department was receiving grant funds to help with their operation, City ofMiami Page 16 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 and having them segregate it helped in the account of that. That's why -- that was one of the reasons why it was separated. Commissioner Regalado: But does the fines that we charge help to defray the costs of those department? Mr. Spring: Yes. Mr. Boudreaux: In the -- indirectly. Mr. Spring: Yes. The revenue comes into the general fund, and the revenue is transferred out to the special revenue account to help support the operations of those -- Commissioner Regalado: So the more money they make, the less they cost. Mr. Spring: Yes, you're right. Commissioner Regalado: So why are not we going after the people that owes money? Mr. Spring: We are. Commissioner Regalado: I don't think so. Well, if you look at the Code Enforcement. How 'bout the murals, you know, it's -- make sense, huh? Mr. Spring: Absolutely, sir. Mr. Hernandez: Obviously, on that, you will have an ordinance coming to you in the month of October. Chairman Gonzalez: I had a discussion with the Manager. I believe it was last week. I remember, when I got elected back in 2001, I insisted on created a task force to go out there and check every single occupational license and Certificate of Use in this city. After three or four Commission meetings, or maybe six Commission meetings, they finally created that task force that went out in the field and they collected $1 million. That was an effort that was done in 2001, andl don't think it has ever been done again. Mr. Hernandez: Commissioner, that's ongoing right now. Chairman Gonzalez: It's ongoing right now? Mr. Hernandez: It's ongoing right now, andl believe from -- Chairman Gonzalez: After you andl met? Mr. Hernandez: No, no, no. It's been going on because, in essence, as of now, we've collected over a million dollars with respect -- Chairman Gonzalez: This year? Mr. Hernandez: -- on that aspect, on checking the occupational licenses, the CUs (Certificates of Use), et cetera. Chairman Gonzalez: OK, and whose doing that? Mr. Hernandez: That's Code Enforcement. City ofMiami Page 17 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: Code Enforcement or -- Mr. Hernandez: Code Enforcement. Chairman Gonzalez: Code Enforcement. Mr. Hernandez: Yes. Code Enforcement and Finance. Chairman Gonzalez: And Finance. All right. Commissioner Regalado: But that goes to Code Enforcement budget? Mr. Boudreaux: That helps supports its cost. Commissioner Regalado: Huh? Mr. Boudreaux: It helps supports its cost of the department itself. Commissioner Regalado: So it's a -- it's sort of a self -sustained department? Mr. Boudreaux: It's not set up as a self-sustaining enterprise type -- Commissioner Regalado: Why not? Mr. Boudreaux: -- fund. Commissioner Regalado: Why not? Mr. Spring: Commissioner, if you recall back during financial oversight, all of the City's enterprise funds were collapsed into the general fund as a -- Commissioner Regalado: I understand that. Mr. Spring: -- matter. Those are things that we can -- as we're coming out of that situation, we can reconsider. We've had discussions about it. Again, just like the NET and Code Enforcement, which you just dutily [sic] pointed out. We have discussed the need to have it that way anymore, but as far as the enterprise funds, we have not had one. I'll give you an example of why, like Solid Waste. We could -- in a lot of cities, solid waste is an enterprise fund, but you have to charge a fee -- Chairman Gonzalez: But Larry -- Mr. Spring: -- that covers that revenue. Chairman Gonzalez: -- let me tell you. With the amount of unemployment that we have in this city, OK, I believe that if you place an ad in the papers requesting license collectors, you don't have to go to Harvard to go to a business and ask for a Certificate of Use, occupational license, and if they can produce it, just to write a receipt for whatever the amount is, you don't need to go to Harvard to do that. I mean, you know, anyone with a -- Mr. Spring: And -- Chairman Gonzalez: -- high school diploma can do that, right? City ofMiami Page 18 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Spring: -- it's being done. Chairman Gonzalez: And I'm sure that if you place an ad on the papers, you could get ten agents out of maybe $25, 000 a year. People will rush to your office to apply for that position, and it will cost you $250, 000 to collect $1. 5 million. I mean, that's pure math -- Mr. Spring: Well, you -- Chairman Gonzalez: -- and even if you want some savings, you can do it on a part-time basis, in that way, you don't have to pay fringe benefits, so it's -- it cost you even less -- Commissioner Sarnoff I like that. Chairman Gonzalez: All right? Mr. Spring: I agree with you completely in concept. Only thing will say is we have those individuals -- Chairman Gonzalez: What we need is the -- Mr. Spring: -- on -- Chairman Gonzalez: -- desire to go out there and do it and the effort to go out there and, you know, walk in the sun and, you know -- Mr. Spring: -- and again, I -- it's being done. Commissioner Sarnoff You could tell us something about that. Chairman Gonzalez: Right. Commissioner Regalado: Did -- do we charge for elevators license -- Vice Chairman Sanchez: That's a County -- Mr. Spring: That's a permit fee. Commissioner Regalado: -- the renewals? Every time you need to renew -- Mr. Hernandez: Yes. Commissioner Regalado: -- a license from an elevator, do we charge -- Mr. Spring: Yes. Commissioner Regalado: -- for that, like every year? Hector Lima: Hector Lima, director of Building. Yes, we have an annual certification of elevators, and we do charge for that. Commissioner Regalado: But you don't do that inspection, the Fire Department does. Mr. Lima: No, sir. We do that inspection. Only certified elevator inspectors in my department can do that. City ofMiami Page 19 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: I thought the Fire Department were supposed to do that. Mr. Lima: No. They have to be certified. They have to have the proper licenses from the State, and they are in my department. Commissioner Regalado: And they write when they were? Mr. Lima: Yes, sir. Commissioner Regalado: There're a lot of elevators. Mr. Lima: Actually, we increase -- we had 2, 400; now we're at 3,400. Yes, there's a lot of elevators. Commissioner Regalado: I know, and some of them have not -- at least you don't see -- last inspection 206 [sic] or 205 [sic], I've seen. Mr. Lima: The way the certificates are reissued, it's based on a certification from the actual property owner, and before we get that certification, we're not posting the new certification on the building. That's part of the process. Commissioner Regalado: OK. Commissioner Sarnoff Mr. Manager, I just want to correct something for the record, andl apologize. I read off Office of Zoning as having an $876, 000 increase. I was wrong. They have a $334, 000 increase, and just so Commissioner Sanchez can see, if you just leave the Office of the Sustainable Initiatives alone and a couple of other offices, and you do away with -- as the Commissioner here had recommended, the two offices -- you can get $3.2 million in savings just from the increases that the departments had. Vice Chairman Sanchez: Well, and I'm sure we could identf some more cuts in this budget. I mean, that's the feedback that I get from this Commission, that we're going to look at everything. I mean, we're -- Mr. Hernandez: Commissioner, ifI -- Vice Chairman Sanchez: -- going to tighten our belts -- we're going to tighten our belts, but don't tie the belt around our necks. I mean, one of the things that we don't know the uncertainty of 209 [sic], and that's a concern that we have. We have to be fiscal responsible here, and this is the process that allows us, today, because we cannot talk about it under the Sunshine law, so today, basically that we have sat with the Administration, and we've talked to the Mayor. Today is the first time that we hear from the Commission as to what departments to look. I have some that will present later on that I would be, you know, asking for reductions, so we'll get to that. You know, we'll cross that bridge when we get to it. Mr. Hernandez: Commissioner, I was going to say that when you're talking about consolidation of departments, I'd rather do them as a result of efficiencies, not because of the fact that you want to just, you know, cut monies or look for additional cuts. I think that we have to be careful. We have, I believe, a very serious year ahead. If I'm going to make a change like that, I'd rather do it because of efficiency, not because I just want to arbitrarily find monies to cut. Believe me, '08/'09 will be a more difficult year, and if we hit the fund balance more than with the fire settlement, and then we come back and we hit it again in '08/'09, we'll be in trouble, and think that it's wise for us to reinvest in the City. That's what we, I think, owe to our residents, too, not just to give them money back, but to reinvest so that we have a healthy and financially sound city. City ofMiami Page 20 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: But I don't think that there is a will, or at least a general will, to go after the reserves here. I think we're talking about reductions in department budgets as we see it here, and one of the thing is we don't know -- like, you know, the nondepartmental account, how many agencies are inside that pot? I don't know. It's $48 million. Mr. Manager, I have a question for you. Do you know if the County is in any way thinking about reduction of hours of operation of 311? Mr. Hernandez: Commissioner, I'm not aware of any reduction at this point in time. They could be planning it, but I'm not aware of it. Commissioner Regalado: There was a proposal to do away with 311 on Saturday and Sunday, and now the proposal is to go up to 10 p.m. The reason I'm saying is because how much we pay for 311? You know, we trust 311. If you calla NET office, or if you call any office in the City of Miami, or if we have a request -- if you have a pothole, if you have a tree to be trim, you're told "call 311." When the City is not working at night or during the weekend, people have gotten used to call 311, so we are paying for that service, and contrary to what other people may think, I think it's a good service. I have been there. I have gone several times because I wanted to see their operation in Doral. Problem that we have is that we -- they have bad information about some of the departments of the City. For instance, I was next to an operator, and they ask for something about building. They gave them -- took out the list and the screen -- this part of the screen of the computer. They gave them a number. I copied down the number. The number was not a working number. It's not the fault of 311, nor the fault of the Building Department because they may have gotten that number long time ago, and the number have been change, and they have been not notified but my point here is we use 311 a lot. Do we have any plan B, if they were to cancel services a certain time or certain day of the --? Because it's the same operation. Mr. Hernandez: Commissioner, at this point in time, we don't. As a matter of fact, we hadn't consider that they were, you know, planning on cutting back. Commissioner Regalado: I read it in the paper. Mr. Hernandez: Obviously, something that -- it's something that the County is embarked on and has been building up year by year, and we're a part of it -- Commissioner Regalado: Yeah, we pay. Mr. Hernandez: -- and it would be -- Commissioner Regalado: We don't pay? Mr. Hernandez: -- in essence, a significant loss of service if they were to do that. Because everything is sort of geared towards providing a service with that unified one number, and my understanding is that we don't pay for it. Commissioner Regalado: Yes, we do. Mr. Spring: No, we do not. Mr. Hernandez: I understand the reason that we don't pay when I was over at the County was because 311 was a City ofMiami number -- Commissioner Regalado: Right. Mr. Hernandez: -- and the County, in order to take over it, had to do something for the City. City ofMiami Page 21 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: Yep. Every Commission meeting, everybody wants to go to heaven, but nobody wants to die. Commissioner Spence -Jones: Mr. Chairman, I just have one -- I'm sorry. I want to wait till Commissioner Regalado -- Regalado, I want to make sure you get your answer -- Vice Chairman Sanchez: Listen. Commissioner Spence -Jones: -- question -- Commissioner Regalado: Huh? Commissioner Spence -Jones: I want to make sure you get your questions answered. I'm sorry. Commissioner Regalado: No. What I'm saying is that I just want the Manager to understand, because I think he has gotten a wrong message that never I have said to go into the reserves. I just mentioned the fact that the County has less reserves than us, but there are agencies and departments that we should consider in terms of reduction, not for the sake of saving money, but it's to send a clear message that we want fiscal responsibility and prepare -- as we prepare for '09, which should be -- according to the Manager, '09, it's like, for us could be like the 212 [sic], like the Mayan calendar, you know, the end of the world, Armageddon, but still, if we do it now, it's not about being efficiency. It's about we, as a legislative body, taking measures in preparation for next year, so this is why I'm suggesting to eliminate one department, which is a saving of 1.5 -- $1.6 million, because I think the other departments can do the same thing that they're doing. Mr. Hernandez: Commissioner, I think that we're -- when you're talking about consolidating, you end up -- Commissioner Regalado: No. I'm not saying -- Mr. Hernandez: -- in essence -- no, you're not talking about consolidating. You're just -- Commissioner Regalado: No, no, no. I'm talking abolishing -- Mr. Hernandez: OK. Commissioner Regalado: -- one department, and reducing the budget of other department. That's what I'm saying. I never -- Commissioner Spence -Jones: Mr. Chairman -- I'm sorry. Commissioner Regalado: -- said -- Commissioner Spence -Jones: Mr. Chairman, I just have -- are you finished Commissioner Regalado? Commissioner Regalado: Yes. Commissioner Spence -Jones: Just want to -- OK. I just want to just ask a couple of quick questions just by listening to my colleagues on the dais. I know that -- first of all, we're still on -- I want to be clear, Mr. Chairman. We're still on BH.1, correct? Chairman Gonzalez: Um -hum. City ofMiami Page 22 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Spence -Jones: And I'm assuming the budget director was just giving us an overview of everything, and then -- Mr. Hernandez: Yes. Chairman Gonzalez: He hasn't -- Commissioner Spence -Jones: -- we get -- Chairman Gonzalez: -- finished his -- Vice Chairman Sanchez: He hasn't finished. Commissioner Spence -Jones: -- he hasn't finished. That's the point, and it's two hours into him not finishing, but I wanted to just be clear. All of us were -- all of the Commissioners -- I want to be clear that all of the Commissioners -- did everybody get briefed on this -- Vice Chairman Sanchez: Yeah. Commissioner Spence -Jones: -- budget? Mr. Hernandez: Yes. Chairman Gonzalez: Yes. Commissioner Spence -Jones: OK. Commissioner Regalado: Yeah. Commissioner Spence -Jones: And did staff take into consideration any of these issues before -- Commissioner Regalado: She didn't know about it. Commissioner Spence -Jones: -- that are being addressed tonight to make the adjustments so that the Commissioners --? I mean, Commissioner Regalado just brought up the issue of abolishing a particular department to reduce on the cost, and it sounds like a new idea. Is this the first time you're hearing this? Mr. Hernandez: No. Vice Chairman Sanchez: I don't think anybody wanted (UNINTET,T IGIBT ,F) Commissioner Regalado: No. Commissioner Spence -Jones: OK. Mr. Hernandez: No, it's not. Commissioner Regalado: No. Every time we had -- Mr. Hernandez: I didn't say that. Commissioner Regalado: -- a meeting, I tell them. Mr. Hernandez: No. City ofMiami Page 23 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Spence -Jones: OK. Commissioner Regalado: They know. I mean -- Commissioner Spence -Jones: All right, Commissioner. I -- Commissioner Regalado: They should be sick and tired of me of (UNINTELMGIBT,F) because I met -- Mr. Hernandez: No, we're not. No. Commissioner Regalado: -- with them like four times and four times I said the same thing, the same thing -- the only difference is that this is a public venue. Commissioner Spence -Jones: Right. Commissioner Regalado: This is a public hearing, andl cannot tell you -- Commissioner Spence -Jones: Right. Commissioner Regalado: -- or the Vice Chairman or the Chairman or -- Commissioner Spence -Jones: Right. Commissioner Regalado: -- Commissioner Sanchez [sic], you know, what I believe. I can tell the Manager. Commissioner Spence -Jones: Right. Commissioner Regalado -- Commissioner Regalado: I said -- Commissioner Spence -Jones: -- there was a reason why I asked the question, because -- in our briefings that we've had with you individually, if this is a question or a concern, not that you have to say that this Commissioner said this or that, but it would be helpful, you know, for us, as we sit on -- a one-on-one with you to go through these items, if there's a issue or concern that has been addressed like this, then we all can think about that same issue, you know. I mean, I think it's important, just as we move ahead, to communicate those issues, because this is the first time I'm even hearing anything like this, so that's number one. Number two, I wanted to be clear. Based upon the two briefings that I had with City staff on this issue -- and you can correct me, Mr. Budget Director -- we have reduced the budget, is it by 31 million? Vice Chairman Sanchez: Fifty-three. Mr. Hernandez: We have achieved the state -mandated reduction rolling back the millage, which equates to 31 and a half million -- Commissioner Spence -Jones: OK. Mr. Hernandez: -- and then beyond that, we identified an additional 22 million reductions that we're reinvesting back into the City. Commissioner Spence -Jones: OK, so in other words -- because based upon the two briefings that I've had, we've actually cut the budget by at least 31 million, which is almost kind of unheard of is it? City ofMiami Page 24 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Hernandez: Plus the fire fee. Commissioner Sarnoff Didn't have a choice. Commissioner Spence -Jones: OK. Almost unheard of correct? Mr. Hernandez: Yeah. Commissioner Spence -Jones: OK, so I was expecting tonight for you to complete your presentation. Of course, there are some issues, just like some of the other Commissioners had, thatl have some concerns. You know, there are reductions that were made for some departments and not for the others, which I want to make sure that we have clarity on that tonight before we leave to make those adjustments so that when we do meet again in the end of September, hopefully, between now and then, any of these questions or concerns that have not been addressed, we can address them before that particular hearing on, I believe, September 27, so I would like, you know, for us to at least allow for Mr. Budget Director to -- two hours into his BH.1 item -- at least complete it fully so that, at that point, we could at least move on so that we can then address key issues. I just think it's important, you know, when we get briefings from you, and if there's issues that come up that other Commissioners, you know, feel, you know, adamant about, you either talk to us and let us know if there's a concern on an item now or we're going to deal with it two hours into the budget -- Mr. Hernandez: No, but it's -- Commissioner Spence -Jones: -- so -- but I'm just saying it's important -- Mr. Hernandez: -- this is part of the process. Commissioner Spence -Jones: -- to have that discussion. That's all that I'm saying, so I would like to say, Mr. Chairman, if we can, can we please get through BH.1s [sic], Mr. Chairman? Can we get through BH.1 so he can complete -- so we can move off this item? Chairman Gonzalez: No. We need him to finish his presentation -- Commissioner Spence -Jones: OK. That's -- Chairman Gonzalez: -- before we start calling items. Commissioner Spence -Jones: OK. Great. Chairman Gonzalez: He's not finish with the presentation yet. Commissioner Spence -Jones: OK, so -- Chairman Gonzalez: Will you -- Commissioner Spence -Jones: -- finish. Mr. Boudreaux: Thank you. Chairman Gonzalez: -- proceed, please? Mr. Boudreaux: Sure. The next slide I was moving to was the graph that shows the contributions that the general fund supports to component units of the City ofMiami and the City ofMiami Page 25 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 BH.2 07-01093 Office of Strategic Planning, Budgeting, and Performance Department of Off -Street Parking. As you can see from the FY-08 budget, includes three million, two forty-three, two -- three twelve in contributions to these agencies compared to 3,803,512 in FY-07. The largest general fund support is to the Virginia Key Beach Trust with 40 percent of the total contributions compared to 44 percent in FY-07, and 31 percent to the Civilian Investigative Panel compared to 32 percent in FY-07. This basically completes the budget process -- the budget review. If you have any questions -- further questions, we'll address it. Chairman Gonzalez: All right. Thank you. Mr. Boudreaux: OK. I need to make a clarification on the budget increases that was noted by Mr. Sarnoff. The primary increases that you're seeing in these areas are as a result of the salary and wages increases from the union contracts that were passed in '07 and a retro effect in '08. Commissioner Sarnoff So we have no choice, is what you're saying? Vice Chairman Sanchez: None whatsoever. Commissioner Sarnoff OK. Chairman Gonzalez: All right. ORDINANCE Second 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, 2007 AND ENDING SEPTEMBER 30, 2008; CONTAINING A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. 07-01093 Legislation SR/FR .pdf 07-01093 Summary Form SR/FR .pdf Motion by Vice -Chairman Sanchez, seconded by Commissioner Spence -Jones, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Sarnoff, Sanchez, Regalado and Spence -Jones Chairman Gonzalez: BH.1. Mr. Manager? Larry? Michael Boudreaux (Director, Management and Budget): This is BH.3, sir, I believe. Chairman Gonzalez: BH.1. Mr. Boudreaux: BH.1. Once again, Mike Boudreaux, director ofManagement and Budget. BH.1 is the proposed general operating millage rate of 7.299 mills for the City ofMiami for the fiscal year beginning October 1, 2007 and ending September 30, 2008. This is the rollback rate as prescribed by Florida Department of Revenue. This millage rate is the maximum rate allowed under House Bill JB and will support municipal services to include, but not limited to, Police, Fire, Public Works, and Solid Waste services. The rollback rate represents the millage rates; will provide the same tax revenue for the City, as was levied during a prior year. Chairman Gonzalez: All right. This is a public hearing. I'm going to open the public hearing. I'm going to allow three minutes per speaker, so anyone that wants to comment on BH. 1, you're welcomed to come to the podium. All right. Seeing none, hearing none, comes back to the Commission. BH.1. That's the -- City ofMiami Page 26 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: That's the millage. Chairman Gonzalez: The millage. Mr. Boudreaux: It's the operating millage. Commissioner Regalado: That's the -- Chairman Gonzalez: The millage. Commissioner Regalado: -- property tax. Vice Chairman Sanchez: That's not millage. Mariano Cruz: That's the millage rate. Vice Chairman Sanchez: Hey, BH.1 is not the millage. Chairman Gonzalez: Seven point two nine nine nine. Vice Chairman Sanchez: It's not the millage. Larry Spring (Chief Financial Officer): Commissioners, if you'll allow me to clam. BH.1 is not the millage item. BH.1 is just a discussion item that is required to be read into the record by the budget director. BH.2 is the millage item, so -- Chairman Gonzalez: All right. Commissioner Regalado: Well -- Mr. Boudreaux: OK. Thanks. Vice Chairman Sanchez: He needs to read it into the record. Commissioner Regalado: -- we don't have to vote on BH.1. Mr. Boudreaux: BH (Budget Hearing) -- Chairman Gonzalez: All right. Mariano, you want to comment on BH.1? Mr. Cruz: On the millage -- Mariano Cruz, 1227 Northwest 26th Street. I have no qualm with the millage. Actually, like Mayor Diaz say, I am paying less taxes this year than any other taxes in Miami, so -- and that's not -- that's the millage because my property increases very little, maybe 2,000 a year, or something like that, with a three percent cap, but -- unless you bought a house 40 years ago, then you get (UNINTET,T IGIBT ,F) Safe Florida Homes. Chairman Gonzalez: All right. Anyone else from the public? Yes, sir. Ken Whiting: Ken Whiting, 742 Northeast 68 Street. I'm not going to comment about my homesteaded house; that's not the issue, but it's two rental fixer -uppers that the -- well, because of the assessments, the taxes just go in the stratosphere, and it like puts you out of business. It takes all your fix -up capital, and don't see how with -- the property values seem like it's the sole reason the taxes on commercial and non -homesteaded properties are in the stratosphere. Chairman Gonzalez: That is an issue that -- you're totally right. That's something that the City ofMiami Page 27 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Legislature never address. They only address homestead property, and they forgot about all the rental properties and commercial properties in the state of Florida and in this city and in this county, and it's something that I've been saying, and I've been saying it publicly, is that eventually the working class won't be able to live in the City ofMiami because people that own rental property, with the increase in assessment values and taxes, won't be able to sustain their properties. They will have to continue to increase rent every single year, and the working class are not going to be able to afford the rents in the City ofMiami, so we're going to have two cities. Maybe people will have to -- maybe we could buy a piece of land in the middle of the ocean and have the people transported to Miami to work during the day and then take them back at night. That's -- is that type of county and city that we want? I don't think so, but it's up to these people in Tallahassee to really sit down and start working seriously -- not just blah, blah, blah, no -- to affect the problem of taxes in every single property, not only homestead; every single property in this county. Commissioner Sarnoff Mr. Chairman -- Mr. City Attorney. Jorge L. Fernandez (City Attorney): Yes. Commissioner Sarnoff Correct me if I'm wrong. I mean, we all know that we have the only property tax assessor that's not elected, but in addition, doesn't Florida Statutes allow, under the third prong of the test under commercial property, for an income analysis approach -- Chairman Gonzalez: No. Commissioner Sarnoff -- for the assessment? Commissioner Regalado: Yes, it does. Mr. Fernandez: Yes, I believe that Broward County and their -- Commissioner Regalado: Broward County uses -- the only -- Mr. Fernandez: Correct. Commissioner Regalado: -- option -- Chairman Gonzalez: Income approach. Commissioner Regalado: -- that Broward County -- Commissioner Sarnoff Correct. Commissioner Regalado: -- uses to assess -- Commissioner Sarnoff So we may be able to do some -- Commissioner Regalado: -- commercial property is income. Mr. Fernandez: Income, correct -- Commissioner Sarnoff So it's -- Mr. Fernandez: -- and that's valid. I mean, that's lawful, of course. Commissioner Sarnoff -- right. That's on -- that's a Florida statute that allows the Dade City ofMiami Page 28 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 County tax assessor to assess based upon, not the highest best use of a piece of property, which tends to be a condominium, but based on what the actual rental income is, correct? Mr. Fernandez: I believe that that's the way Dade County does it. Chairman Gonzalez: No. Commissioner Sarnoff No. No, no, no, no. Chairman Gonzalez: No. Let me tell you. No, no. Let me tell you. We propose that three years ago. It pass -- we pass it here in the -- Commissioner Sarnoff A resolution? Chairman Gonzalez: -- City ofMiami. It passed at the County left. It passed at the House of Representatives -- Vice Chairman Sanchez: Not in the Senate. Chairman Gonzalez: -- but the Senate voted it down three years ago. Commissioner Sarnoff Well, I -- correct -- but this is what want to get understand -- because I thought I read Florida Statutes three or four months ago, andl thought the third prong of the approach allowed for the property tax assessor --I think viewed it with the City Manager, didn't I? Pedro G. Hernandez (City Manager): Commissioner, in talking to the tax appraiser at Dade County -- Commissioner Sarnoff Right. Mr. Hernandez: -- the way he reads and interprets the statute is that he may use these various methods, one of which is the income approach. Commissioner Sarnoff Right. Mr. Hernandez: -- but he -- it's a question of he may, so he chooses among those methods, or a combination of to determine what he feels will give you the market value, so it's his interpretation of the statute, and apparently, it's open enough to the point that -- Commissioner Sarnoff But that's -- Mr. Hernandez: -- it's valid. Commissioner Sarnoff -- my point. The point is the law -- andl don't want to snow anybody out there. The law is on the books, so to speak. This man, who has a pulse and a heartbeat, has determined that he was going to assess people based upon whatever that house within the three -block radius sold for next to them, because that's going to get him the most money, especially in the '06, '05, and maybe even '04 time period. My question to you is, this is a Dade County tax assessor, so this is not a Tallahassee problem. Vice Chairman Sanchez: Nope. Chairman Gonzalez: Right. City ofMiami Page 29 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff This is a Dade County problem. Vice Chairman Sanchez: Hello. Commissioner Sarnoff Why can we not, as a board -- I know we can't legislate to him, but we can at least resolve to him -- to ask that two things happen: One, that Dade County open up their Tax Assessor's Office to an elected position, and two, that they look at the third prong approach, which is the income analysis, which my understanding is, as is Commissioner Regalado's, is being used in Broward County. Commissioner Regalado: IfI can say any -- would you allow? I spend three hours sitting waiting the other day during the night to go before the Charter Review Committee of the County. I was invited, andl went there to advance the cause of having an elected property appraisal [sic] as any other county in the state of Florida. The 21-member panel listen, and my argument was exactly that one, that the -- before me it was Lori Parrish that testified before the committee, and what she said it -- that it would -- that it is wrong -- she used the word "wrong" -- what the property appraisal [sic] of Miami -Dade County is using of using future use for any land appraise, and he can use the income because -- as a matter of fact, in 1984 -- '86, the Florida Supreme Court said that any property assessment of future land uses could be considered frivolous by any county, you know, and the thing is that no one sues -- no one has sued Miami -Dade County property appraisal [sic], but my point is that we need to be more proactive. See, what we're doing here is we are reducing the millage, but then this resident, who owns property in the City ofMiami, goes home, opens the mail, and said, "Those jerks. They didn't do anything for me." We reduce. We struggle. We sweat. We reduce budgets in department, and then he goes to his property and finds that there have been a raise in their values of more than, I will bet you in your case, 30 or 40 percent. No county in the state of Florida has raised more than ten to fifteen percent property values from one year to another, and I would bet you money that your property and any other property in the City ofMiami have been -- commercial property -- raise in value, as we speak this year, more than 20 percent. I have seen property that have been raised 100 percent through the last year, so whatever we do here is no good because it doesn't show for you; only for the people with homestead exemption. I think that we should have a crusade, andl mean crusade, and go to the County and demand that we have a property appraisal [sic] elected on the ballot on January 29. The County Commission has the power to do it, but the fact is that they are waiting for the County Charter Review Committee, and guess what? The Charter Review Committee has decided that they would not recommend that some of the positions that are elected throughout the state of Florida -- and we don't have it here as elected, a sheriff supervisor of election, tax collector and property appraisal [sic] will not be elected because that could alter the ethnic balance of the county structure, andl think it's wrong that this has been considered because the only solution for the taxpayers of the City ofMiami, especially those who rent, especially those who have property, will be to have a property tax assessor, and I tell you something more. I would ask any of you who has receive in your home information, a pamphlet, some kind of letter or postcard from your property appraisal [sic] explaining to you what are we voting on January 29. Well, none of us, but you know why? Because we live in Miami -Dade County. However, if you live in Broward County, you have gotten in the mail or you can get in any county office a pamphlet where you have a woman pulling her hair and screaming and saying, "1 don't understand what is going on the ballot on January 29." This pamphlet was produced and printed by Lori Parrish, the property appraisal [sic], and page -by -page, she explains to you if you have bought your house 30 years ago, my recommendation is that your stay with the Save Our Home. If you're buying -- if you bought your house two years ago, I would recommend that you go to a super exception [sic], but in seven years, you're going to be on the downside. She tells you what are you voting. She tells you what could happen if you're voting. The people in Miami -Dade County don't want us to know because they just want us to, you know, vote or not vote. I think, you know, the City is doing a lot, and you have -- and the people need to understand that we are trying -- we're trying to reduce taxes and you know, whatever the Mayor says that this is the biggest reduction. When City ofMiami Page 30 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 you open your bill, you're not going to believe him or us because it's nothing there. Your property value has gone up. I think we should be proactive. I think we should go to the County. I think we should demand from our County Commissioners and the Mayor of the County that they have the authority, they have the power, they have the possibility of placing this in the ballot, and it needs to be something very clear that it would start as an elected office on November -- with the election of November '08, because the proposal that was presented was meant to have the office functioning as an elected office in November of 9 -- of 209 [sic], so it would kick the work on 2010, so by then, you know, we don't have poor people in Miami. Miami will have no poor people at all, not because they became rich, but because they left. There's no way for the people to be here. Maybe that's the way that we fight the statistics. You know, by getting rid of the poor people, we decrease the poor level of the City, so I hope that this board would really be proactive and the residents in asking our County Commissioners, maybe other cities, to give us the only solution that there is, to have an elected property appraisal [sic]. Thankyou, Mr. Chairman. Vice Chairman Sanchez: Thank you. Let me see if I could get back on track here. Why don't you go ahead and read BH.2, which is the millage, and then we'll go ahead and open it up to the public. Everyone who wants to address the Commission, just sign up with the City Clerk and you'll have three minutes. Sir, you're recognized -- Mr. Boudreaux: Thankyou. Vice Chairman Sanchez: -- for the record. Mr. Boudreaux: Once again, Mike Boudreaux, director, Management and Budget. Commissioners, this is the first reading of the ordinance accepting the proposed operating millage rate of 7.2999 mils and a debt service millage rate of .5776 mils for a combined millage of 7.8775 for the fiscal year ending September 30, 2008. Vice Chairman Sanchez: All right. So now we open it up to the public. That is on BH.2, pertaining to the millage. Anyone wishing to address the Commission, please come up. You'll have three minutes. Albio Castillo: My name is Albio Castillo. I live in 2386 Southwest 5th Street. My question is to the board. I'd like to know is how is my capital bond money, is it being spent wisely? I also like to know is how is the City going to collect outstanding debts, like in Code Enforcement, which, for years, has not been collected, andl have proposed many times a pet project of mine of trying to collect, which you already known andl have previous stated on it to collect the outstanding debt in Code Enforcement, because down the pike, the City ofMiami will -- and any municipality are going to have a hard time collecting. I also like to thank the Fire Department for helping my father, Fire Station Number 7, and the Police and Fire for the way they have been working under these stressful times, including Solid Waste, and I'd also like to know is how is the City going to increase the communication. Chairman Gonzalez: All right. Do we have an answer? Vice Chairman Sanchez: All right. He asked -- Chairman Gonzalez: Mr. Manager. Vice Chairman Sanchez: -- about the bond funds being used properly and wisely. He asked about uncollected Code Enforcement, Fire -- he thanked the Fire Department, and there was -- the last one I didn't get. Mr. Castillo: Communication [sic] department. City ofMiami Page 31 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: Communication [sic] department. If you could address that. Mr. Hernandez: I would say the first one I would recommend the individual to go to the Bond Oversight Board meetings. We have that board that basically oversees all the capital improvement programs. The Department of Capital Improvements reports to them, and that's the best way to be up -to -speed as to what's happening there. With respect to the issues of Code Enforcement, yes, we're being more aggressive in findings ways to collect, to apply liens, foreclosures, and be more aggressive. (UNINTET,T IGIBT ,F) same item that we discussed earlier today, and we definitely are committed to improving our performance there. On communications, I don't know what you're -- Mr. Castillo: I need to -- because -- and we need to have like a continuance -- like the meetings and all of that to be continued and the programs that are having, because Communications is one of the least budgeted programs in the budget to a degree, and we already -- the City of Miami has won an Emmy, which is very rare for a municipality in that field. Mr. Hernandez: Well, on that one, I have to thank you. I think it's good. We would like to do better and -- but we also have to abide by a budget year that is very difficult. Mr. Castillo: I understand that, sir. Before I leave, I'd like to know is how is the City going to continue on the illegal meters in District 3 or 4 that have been continued to be neglected, and it is a problem as a city for many years. Chairman Gonzalez: The what? Vice Chairman Sanchez: Where is the Off -Street Parking guy? Mr. Castillo: The problem is -- Vice Chairman Sanchez: He's somewhere around here. Mr. Castillo: -- that some of those things are not properly marked and not properly gauged according to the City statute. They have to be marked, and some of those areas are not marked, and people are getting $18 ticket. Commissioner Regalado: It's true. Vice Chairman Sanchez: That's the Off- Street Parking. Commissioner Regalado: He's right. Vice Chairman Sanchez: Where's Noriega at? Mr. Hernandez: I know he's in the building. He's coming out. Vice Chairman Sanchez: That's him right there. Mr. Hernandez: If -- I would recommend that you actually provide him all the detail information Mr. Castillo: I know. Mr. Hernandez: -- so he can follow up on it. City ofMiami Page 32 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Castillo: He knows me. Vice Chairman Sanchez: That's him. Mr. Castillo: And he knows me. Commissioner Regalado: He's right. Mr. Castillo: And he knows me. Art Noriega: Can I step up here and answer your question? Mr. Castillo: Yes, of course, you can. Mr. Noriega: We're already working with CIP (Capital Improvements Program) on a couple of areas where we have some illegal meters, especially in some of the right-of-way that's blocking -- moving the lanes of traffic, so we're working on removing some of those, and on the issues of areas where we have to make some improvements, we're working on including that in our capital plan for the back end of next year, so we're working on it. Vice Chairman Sanchez: See, so there you go. Mr. Castillo: Thank you. Vice Chairman Sanchez: You know, you get involved, you resolve some issues. Mr. Noriega: By the way, you have my number. Any time you want to call me -- Vice Chairman Sanchez: All right. Mr. Castillo: Thank you. Mr. Noriega: -- feel free. Vice Chairman Sanchez: Hey, listen, your three minutes are up, pal. Commissioner Spence -Jones: Yes. Come on now. Chairman Gonzalez: All right. Mr. Castillo: OK. Commissioner Spence -Jones: Keep going. Mr. Castillo: Thank you. Chairman Gonzalez: Next. Go ahead, Mariano. Mariano Cruz: OK. Again, Mariano Cruz, 1227 Northwest 26 Street, in Allapattah, Miami. I can't ask anyone -- I can't complain about the parks or the fire fee because that's well taken care, but I hear that you now are going to do some evaluations of service in my neighborhood. I can't complain. The garbage get picked up. Mario and Joe Simmons, they do real good, a good team. The Police Department, under Commander Arbeyo (phonetic), is working real good. The response time is good. Same thing, because not only that, they got Sergeant Sigler there on the problem -solving team, which is real good. The Fire Department and rescue, they do good. They City ofMiami Page 33 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 say -- the Police Department, they really doing -- according to what I pay in taxes, I am getting good -- real, real good service, and going outside into the big department, I got to praise the Employee Relations/Human Resource Department, especially Joni Harris because she keep me posted of all the different openings in the City, andl tell people, and they go there. Whether they pass the test or not -- well, at least they go there, and another thing that's now that's bugging me in a way, the -- everything is being televised. You go to C-Span and they get -- I saw the fights here between the late Commissioner Teele and Donald Warshaw, City Manager, and now the Civil Service Board is not being televised for a long time. Not only that. Now, tomorrow, I have in my package somebody wants to know the individual voting of members for the last seven years. Was that intimidation or something? I mean, they don't intimidate me. Chairman Gonzalez: Mr. Manager. Mr. Cruz: I wasn't intimidated in Cuba, but was intimidated here, so why shouldl be intimidated, and not only that. I was appointed by Commissioner Regalado once and Commissioner Gonzalez twice. They had never come to me and ask me, hey, vote for this -- vote against this (UNINTELLIGIBLE) because it's not good. No. I'm going to vote whatl think, and nobody is telling me what to do or how to vote. No Commissioner is going to tell me because we should be clear of all wrongdoing, only thing. Chairman Gonzalez: Thank you. Mr. Cruz: OK. Thank you. Chairman Gonzalez: Thank you, Mariano. Mr. Manager, that's a complaint thatl have heardl don't know how many times. I don't know why we don't televise the board -- the Civil Service Board. What is the issue? What is the --? What are we trying to hide? Vice Chairman Sanchez: We just wanted to cut communication -- Mr. Hernandez: Well, it's not -- Vice Chairman Sanchez: -- and here we want to televise it. See what mean. Chairman Gonzalez: No, no, no, no. Vice Chairman Sanchez: Everybody wants to go to heaven, but nobody wants to die. Chairman Gonzalez: No, no, no, no, no. Commissioner Regalado: No. Actually -- Chairman Gonzalez: That has -- Commissioner Regalado: -- if you would televise the Civil Service Board and you would rerun the Civil Service Board, you will be saving a lot of money -- Vice Chairman Sanchez: What? Commissioner Regalado: -- not buying one of those canned programs that you -- Chairman Gonzalez: Right. Commissioner Regalado: -- buy, and you know, again, I have never, ever been brief on what the Communications Department does, but I really believe that if we want to be transparent, we City ofMiami Page 34 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 cannot hide the things that we do here, and the Civil Service Board, yes, it airs some dirty laundry, but -- I mean, what is wrong with that? I mean, they do that all the time in, you know, the hearings in the Congress. When you tune on C-Span, you said "Did you lie? Did you perjure yourself?" So, you know, I don't understand the mystery here in this Administration. I don't understand really how do we have a TV (television) station that is not use to run City of Miami information programs. That I cannot understand. Mr. Hernandez: I tend to disagree. I think that we're basically information -based, period. We do information. Commissioner Regalado: Because you have more -- Mr. Hernandez: On the issue -- Commissioner Regalado: -- experience in media than I do. I'm sorry -- Mr. Hernandez: No, sir, no, sir, but I think that -- Commissioner Regalado: -- but you know, the point is that I tune in. I have seen programs that are made in Carolina, in, I don't know, other -- Kelly, can you tell me, are we airing any nonlocal produced program in Channel 77? Kelly Penton (Director, Department of Communications): Commissioner, yes, we are. Kelly Penton -- Commissioner Regalado: OK. Ms. Penton: -- director of Communications. We do not pay for that programming. That programming is actually sent to us by the State. It's free programming. It's also educational; usually and mostly related to state issues, whether it be the environment or state -level government; how does the government work? Those are some of the things that we air that are not locally produced, and it's free of charge, and it helps us diversin, the programming and continue to work towards our goal of using our channel to inform our residents, not only about the local issues, but about -- Commissioner Regalado: Well, but -- Ms. Penton: -- other issues that they feel -- Chairman Gonzalez: Yeah, but -- Ms. Penton: -- are important in their everyday lives. Commissioner Regalado: -- you're aware that the Legislature has a channel, right? Ms. Penton: Yes, I am aware. Commissioner Regalado: OK. You're aware that the County has a channel, two channels actually. You're aware that the School Board has a channel, so the question is why cannot we promote the things that we do? Why cannot we accommodate the viewers and run a rerun of the City Commission this, that, that time; a rerun of the Civil Service Board, a rerun of Code Enforcement, a rerun of the Planning, because no one -- you cannot expect -- the reason that there is programming in TV station is because there are people that work in the morning, people that work at night, people that watch TV during the night, people that have insomnia, and that's the thing, that -- that's how television programs. Like I said, I don't know anything about media, City ofMiami Page 35 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 but I am telling you that there is no need for us to be the instrument of propaganda for the State or for the County or for, you know, that little cute bear that doesn't ignite fires in forests as we have so many forests in the City ofMiami. I've seen the advertising in Channel 77, so what I'm saying to you is that it is wrong, but you know what you're going to do with what I say? Nothing, because that's the way it is. I've said it every year, and you will continue to do whatever you feel. I feel that as your Commissioner, it's a waste of time. Chairman Gonzalez: It is. Commissioner Regalado: It is a waste of time. It is a waste of money. It is no good, because the Commissioner never interacts with the people. The Commissioner never knows who you're going to interview. You interview whoever you want, and then you have the Commissioner respond, and the only thing that is good for is that you have the Commissioner on camera half an hour. I don't need that. I have three programs a day, so I don't need the visibility. My point is that we need to educate the people through these meetings, Code Enforcement, Planning, Zoning, CIP, Bond Oversight, Civil Service Board, and these are the programs that should be running, but -- Vice Chairman Sanchez: Mr. Chairman. Chairman Gonzalez: All right. Let's move along because -- Commissioner Spence -Jones: Yes. Vice Chairman Sanchez: With all due respect, let's -- Chairman Gonzalez: -- we -- Vice Chairman Sanchez: -- focus on the budget. Chairman Gonzalez: -- yeah, but this -- Commissioner Regalado: But that is the budget. Chairman Gonzalez: -- part of the budget. I mean -- Commissioner Regalado: That is the budget. I mean -- Chairman Gonzalez: -- we got complaints from the citizens -- Commissioner Regalado: -- this is the only time in the year that we can say something about the departments of the City ofMiami. This is the budget. Whether you don't want to touch that department or not, that would be up to you and the votes, but -- and the Manager, but this is the budget, and this is where -- I remember when you make us stay here until 3 a.m. because you parade every department -- Vice Chairman Sanchez: I might do that today. Commissioner Regalado: Well, fine by me, but you did it, so you're criticizing what I'm doing now. Do you not think we should, Commissioner Sanchez --? Vice Chairman Sanchez: If you have three votes, yes, anything could be done here, but -- Commissioner Regalado: No, no, no, no, no, no. Vice Chairman Sanchez: -- you need three votes. City ofMiami Page 36 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: Do you not think -- Commissioner Spence -Jones: Mr. Chairman. Commissioner Regalado: -- that we should address issues that we believe are wrong with departments? Vice Chairman Sanchez: This item pertains to the millage, not the budget, so if we're discussing Chairman Gonzalez: Yeah, but -- Vice Chairman Sanchez: -- an item like BH.2, it's the millage -- Commissioner Regalado: OK. Vice Chairman Sanchez: -- not -- Chairman Gonzalez: -- we had -- Vice Chairman Sanchez: -- the Communication [sic], or Solid Waste, nor Police Department -- Chairman Gonzalez: -- but wait a minute, but we had a resident -- Vice Chairman Sanchez: -- or the price of tea in China. Chairman Gonzalez: -- we had a taxpayer that had a problem with one board not being televised, and maybe it's more than one board that is not being televised, and you know, he's entitled to his opinion; he's asking questions, and we have to respond to him, andl have -- I happen to agree with him that every year the Civil Service Board issue comes up at budget time, and we do nothing about it, and maybe, as you said, what we need to do is just make a motion, get the three votes, and then have the Civil Service restore. It's that simple. I mean, you know, because here there are some things that the only way that they happen is that, you know, one of us make a motion, another one second it, and a third one vote in favor, and that's it, so you may want to consider that for the future, Commissioner Regalado. Yes, ma'am. Deborah Taylor: OK. My name is Deborah Taylor, Cimadevilla Taylor, andl reside at 1305 Southwest 30th Avenue. As you know, I represent apartment building owners because that's what my family has been doing for the last 40 years in Miami, and forgive me if I'm not sure where I needed to speak before or afterwards; it's a little confusing, so I'm just going to say what I need to say. It is very confusing and very disheartening that we were sent a message -- andl personally know, myself I worked very hard to try to get a cut in our taxes because every year we carry the burden of the tax revenue as commercial apartment building owners. We own lower income apartments, andl could tell you, it's really disheartening that we have a system which is not really giving us anything back. After everything we've tried to do, I'm paying more in my taxes this year than I did last year. We're supposed to receive a cut. For example -- oh, and it's very confusing, too, and maybe you can help me understand. It's very confusing because we were sent a message that the assessed values would not go up. I have a building here that went up from 582,000 to $770,828. That's an increase in assessed value of $125, 828. Chairman Gonzalez: Who sent you the message? Commissioner Sarnoff Right. I was -- City ofMiami Page 37 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: Who sent you the message that the assessment will not go up? Ms. Taylor: Well, to be honest with you, sir, in Tallahassee, it was very confusing -- Chairman Gonzalez: Tallahassee -- Ms. Taylor: -- what they were sending. Chairman Gonzalez: -- so Tallahassee sent the wrong message and made people believe -- first of all, they made people believe that they will pay no more taxes in the City ofMiami. Ms. Taylor: No, not paying -- Chairman Gonzalez: That was -- Ms. Taylor: I don't mind paying taxes. Chairman Gonzalez: Yeah, but that was the first message. Ms. Taylor: Right. Chairman Gonzalez: It was unrealistic, but it was the first message. Then they send a message that property values were not going to be increased. Ms. Taylor: Exactly. Chairman Gonzalez: Wrong message again. Then everybody thought that they were going to be -- they were going to get a cut on their taxes; another wrong message because your type of ownership will continue -- Ms. Taylor: Going up. Chairman Gonzalez: -- to go up. Unfortunately, and that's why I was referring to that anybody that has rental property is going to end up having to sell their property and leave this city -- Randy Rosenthal: To who? Chairman Gonzalez: -- and your tenants -- Ms. Taylor: No. My tenants are -- Chairman Gonzalez: -- are going to have to -- Ms. Taylor: -- excuse the language, but -- Chairman Gonzalez: -- go I don't know where. Ms. Taylor: -- they're screwed -- Chairman Gonzalez: They're going -- Ms. Taylor: -- you know. Chairman Gonzalez: -- to have to go -- City ofMiami Page 38 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Ms. Taylor: Yeah. Chairman Gonzalez: -- I don't know where and be transported -- Mr. Rosenthal: And who are we going to sell to? Chairman Gonzalez: -- to work in the City, so you know -- Ms. Taylor: Yeah, who are we going to sell it to? Yeah. Commissioner Sarnoff Who are you going to what? Chairman Gonzalez: -- it's all wrong messages. Mr. Rosenthal: Who are -- Ms. Taylor: I -- Mr. Rosenthal: -- we're running out of people to sell to, OK? Chairman Gonzalez: Well, let the lady -- Ms. Taylor: Let me finish. Chairman Gonzalez: -- speak first, and then you have your (UNINTELLIGIBLE). Ms. Taylor: Yeah. Mr. Rosenthal: You let the lady finish. Ms. Taylor: I -- you know, I spoke with someone, andl won't mention names because it -- I don't want to be, you know, like that, but I had spoken to someone and they said -- about our problem, and you know, it's a family business. I'm not interested in selling. I'm not interested in flipping. This is what my parents worked very hard for. This is what I worked very hard for, and I really love my tenants. They're people that -- they work two or three jobs, you know, and they're trying to make the American Dream come true for themselves, andl take it to heart that have to go and raise the rent on them every year dramatically, you know, and many of them can't afford it, andl have -- the eviction rate is up, and -- well, I can go on and on, but you're right, you know. Nonetheless, yeah, our taxes went up. Our assessed values -- I mean a hundred and twenty five - - almost $126, 000 assessed value increase. Number one, it's very confusing to me -- and maybe someone can clam -- I'm sorry that the time is up, but I have to ask you the question -- this year the dollar amount was held back, correct? At least, you know, the dollar amount of taxes that we're paying, but the assessed values jumped up. What's going to happen next year? Because our -- am I going to be taxed next year according to the assessed value increase of this year plus next year's? Chairman Gonzalez: Yes. Ms. Taylor: Or -- yes, so in fact, if they were saying that they're saving us some money this year, it's going to go up probably double next year, so I'm just really confused as to how that's going to work out, and you had said, sir -- I'm sorry, I don't know your name -- that you don't know what next year your revenue is going to be because of all the cuts and so forth, but I have to tell you, I think you maybe could afford more cuts because people like me, next year, we're not going to be afforded a little savings because our taxes are going to go up. I don't even know how much they're going to go up next year. I don't know how they're going to tax me next year. City ofMiami Page 39 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Hernandez: Well, you're focusing on the wrong issue. The issue here is that there's no control on the assessed value, and that's beyond the control of this board, totally. Ms. Taylor: I know that. Mr. Hernandez: Totally. Ms. Taylor: I know that, but just -- you had said that you don't know -- you can ex -- you know, you expect a bigger cuts next year because -- Mr. Hernandez: In revenues, yes, I do. Ms. Taylor: -- you don't know what revenue, but -- Mr. Hernandez: Yes. Ms. Taylor: -- people like me are going to be paying a lot more next year, and there's a lot of us here. Mr. Hernandez: But one is not related to the other. If we had control over the assessed value -- Ms. Taylor: Right. Mr. Hernandez: -- like for example, on homestead properties, they're capped -- Ms. Taylor: Right. Mr. Hernandez: -- at three percent. If you had, let's say, a five, seven, ten percent cap on your assessed value, it'll be a different story. Ms. Taylor: Right, but what I'm saying to you, sir, is that this year your revenue did not go up that much on apartments like mine, but next year, I'm going to be paying a lot more. I'm going to be paying probably this year's increase in assessed value, plus next year's increase in assessed value because no one's going to give me any kind of break next year, andl don't have a super exemption option, I don't have anything, andl own apartment buildings where I may have six units, but there's other people that maybe they bought a duplex and -- or you know, a single-family home and they're renting it out, and they don't get a cap or a super exemption, so I'm just saying you're going to have a lot more revenue than maybe you believed you were going to have from people like ourselves. Chairman Gonzalez: Not really, not really, because if the Tallahassee bill gets approved January 29, we're going to be hit with another $60 million a year -- Ms. Taylor: And how would that -- Chairman Gonzalez: -- that we're going to lose. Ms. Taylor: -- so how would that work out? I'm sorry, that they will give you another -- Chairman Gonzalez: That is going to apply -- that's the unfortunate of the law. The law that they pass in Tallahassee, it only -- it's only going to apply to homestead properties. Ms. Taylor: Right. City ofMiami Page 40 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: Yeah. Chairman Gonzalez: If the voters approve it in January 29, we're going to have another reduction of $60 million on taxes. Ms. Taylor: On homesteaded properties -- Chairman Gonzalez: On homestead properties, yes. Ms. Taylor: -- but we're paying maybe -- Commissioner Regalado: Oh, no. Ms. Taylor: -- more -- Commissioner Regalado: I don't think so -- Chairman Gonzalez: Well -- Ms. Taylor: -- but the point had is -- Commissioner Regalado: -- and she's not going to get -- Ms. Taylor: -- and I'm not -- Commissioner Regalado: -- any relief at all -- Ms. Taylor: -- exactly. I'm going to have to pay -- Chairman Gonzalez: Well, she's not. Ms. Taylor: -- I'm going to -- Commissioner Regalado: -- and the only people that -- and those $60 million in reduction will be statewide because it's only -- Chairman Gonzalez: No. Commissioner Regalado: -- if people takes super exception [sic]. Chairman Gonzalez: Super exemption. Ms. Taylor: Right. Commissioner Regalado: Because if -- the majority of people would remain with what we have - Ms. Taylor: Exactly. I would not -- Commissioner Regalado: -- but -- Ms. Taylor: -- I'd have a cap -- Commissioner Regalado: -- that I would not charge -- Ms. Taylor: -- with that super exemption, there is no cap. I have no idea what -- City ofMiami Page 41 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: Right. Ms. Taylor: -- they're going to give people. I would say don't vote for it, but nonetheless, Angel, what I'm saying is that this year my dollar amount, you know, this year I'm paying fifteen thousand odd something dollars, and supposedly, well it'll only -- it was -- I wasn't taxed based on my assessed value because of what happened, but next year, my assess -- and take into consideration, my assessed value went up 125, 000. Next year, it's going to go up probably another $125, 000, and they're going to tax me -- you know what mean -- according to this year's 125 raise and next year's, so you're going to be getting a lot more money than you think, and there's a lot of people like us that don't have homestead, sir, so my question is can you please cut in other areas? Can you, please, even -- you know, the millage rate, I'm grateful you're going to lower it. Thank God for the fire fee, it's gone, but you could afford, I think, to cut a little bit more than you think, and that's just -- Chairman Gonzalez: All right. Vice Chairman Sanchez: Thank you. Chairman Gonzalez: Thank you. Ms. Taylor: -- my -- Chairman Gonzalez: Thank you. Ms. Taylor: -- question. Chairman Gonzalez: Yes, sir. Mr. Hernandez: There is not enough that we can cut to satisfy her need. Chairman Gonzalez: Yeah. Ms. Taylor: Definitely not -- Chairman Gonzalez: There's no way. Ms. Taylor: -- because I'm paying more every year, and -- Chairman Gonzalez: In order -- Ms. Taylor: -- you know what? I implore you guys to really do something about the situation with the appraiser, because it is ridiculous that this appraiser -- I don't know where he got this sale of seven hundred and something thousand dollars for -- in that area, because I look -- every year I look at the portal and there's no comparable. I don't know where he's getting this number from, but if there is some ridiculous person, ignorant person that bought a building for that amount of money, why should I have to pay for his bad business idea of paying for something that's not worth it? Chairman Gonzalez: Thank you very much. Yes, sir. Ms. Taylor: You're welcome. Thank you. Commissioner Sarnoff What's worse is he's going to come to the City Commission and ask for some sort of exception because he overpaid. City ofMiami Page 42 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Ms. Taylor: Yeah, yeah, and why do we have to pay for someone's ignorance? Chairman Gonzalez: Go ahead. Randy Rosenthal: Randy Rosenthal, 8264 Northeast 9th Avenue. I'm here for the same reason, reinforce the problem that I and others, as property investors in Miami -Dade County, are having with our taxes. It's gotten to the point where we can't afford to keep our properties anymore, and like you said, sell it to somebody else, but as we've seen in the market, there's no one else to sell it to. We're holding the bag, and it's a big problem. One particular property I have here that my wife andl bought in the year 2000, when we first bought the property, we were paying $3,280 in property taxes. This year, after six consecutive increases, the county assessor has raised us another hundred twenty-two percent, from 534,000 to $1,186,000. This is a three -unit on a half an acre. When I went to fight last year, they said, oh, well, you're not using it for the highest and best use. The problem is this is the use that's -- that the property's been used for for the last 40, 50 years. I don't have the capital to put a 16-unit building there to just that. It's -- their methods are flawed. They use comps. They don't figure in sales, commissions; they don't figure in other taxes that we have to pay. I think there is a huge problem with the appraiser's office. I applaud Commissioner Regalando [sic] -- I hope I'm pronouncing your name properly -- for your concerns and your views. I think somebody needs to sue the appraiser. This is a big problem. We cannot afford to hold our properties anymore. Vice Chairman Sanchez: Have you appealed? Mr. Rosenthal: They're raising me from 13,000 to 26,000 on a three unit. Vice Chairman Sanchez: Have you appealed? Mr. Rosenthal: I appeal last year, and now I got it reduced from 735 down to 535, but this year it's like they're making up the difference, plus some. They're anticipating me appealing, but from 534 to 1,186, 000 on a three -unit property. I mean, this is -- I think it's illegal, and if there's any other property owners here, I think we do need to start a movement and something needs to be done. This is outrageous. We cannot afford to hold our properties anymore. I think people like us, we are the backbones of the City ofMiami. People are investing their hard-earned dollars here, people who -- you know, this was supposed to be my retirement. You know, I took out a 15-year mortgage, my wife andl You know, let's pay it off fast. Let's do what we can. Back in 2000 we could afford to do that. We raised the rents, but we can't now because the rents are so high they don't cover the property this year. No less with another $1, 200-a-month increase in just taxes. You know, this -- our plan has failed Our plan has failed. We are investors in the City ofMiami, and our plan is failing, and you all need to do something about it. Thank you for lowering the millage to the, what is it, maximum amount allowed by the State? Thank you for lowering it to that. The maximum allowed by the State they've lowered it to. You've really done us no favors. I think we need to cut things. I think we really need to look into making more cuts, and this is a very serious issue, andl really need to emphasize how serious this is because you're going to lose your investment base, and that's going to damage the City. Raising the rents to tenants, it takes spending power; it hurts the economy. There's a lot that has to be looked into. I would propose a sales tax of a quarter, a half a percent, but we need to be protected because it's seven consecutive years of increases, from 3,000 to 27,000. We can't keep taking out equity loans to support our property. Vice Chairman Sanchez: Can I see -- Chairman Gonzalez: Thank you. Vice Chairman Sanchez: -- your trim notice? City ofMiami Page 43 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff It's Randy, isn't it? Mr. Rosenthal: It is. Commissioner Sarnoff Randy, did you ever go down to the County and attend any of their hearings? Mr. Rosenthal: I went to the County meeting on, I believe it was Thursday night, andl spoke also. Commissioner Sarnoff And did you suggest to them that they do something regarding the appraiser? Mr. Rosenthal: No, I didn't, but it's a new point of contention, I think. I think it's -- Chairman Gonzalez: That's the place to do it. Commissioner Sarnoff No. I'm not trying to pass the buck, but -- Chairman Gonzalez: No. Commissioner Sarnoff -- it is the appraisals that everybody's concerned and complaining about. Mr. Rosenthal: No. I agree, and you know, it's gotten to the point with this appraisal where it's just -- it's completely out of control, andl have three other properties that are going up an average of 33 percent, and it's -- last year, we couldn't bear it anymore. Now this year, with this increase, it's -- you know, I stand to lose properties that I've owned for five, six, seven years. It's not like I bought at inflated rates two years ago speculating. I mean, all these appraisals that their comping us to are based on, you know, a lot of speculation in the market. There's a lot of mortgage fraud that has raised sale -- comparable sales. There's a lot of fraud. There's a lot of problems with the system as it is now, and we need to move in -- we need your help. 171 do whatever I can. I could give anybody on this Commission my phone number. I would love to put time and help, but this is a very serious issue. I want to stay in Miami -Dade County. I want to be an investor in Miami -Dade County, but what's going on here is not allowing me to continue, and we need help. Commissioner Regalado: I think that if any -- everyone that has this problem, and everyone that has this problem, number one, sends an e-mail or -- and a letter with an intent to appeal your appraisal. If we get 300,000 appeals before the appeal board of the County, we collapse the system. That's number one. Mr. Rosenthal: Right, andl think now they're pricing it into their appraisals. Commissioner Regalado: Yeah. Mr. Rosenthal: There's no method. Commissioner Regalado: No. Mr. Rosenthal: They want us to go and fight them or, you know, they'll just take our money -- Commissioner Regalado: Right, right. City ofMiami Page 44 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Rosenthal: -- and even if we go to fight, they give us some back, but it's not what it should be. Commissioner Regalado: If you fight and -- they'll give you some relief but they always are budgeting the fact that they going to have a discount if you, by chance, appeal, but I do think -- Mr. Rosenthal: I'd like to hear from Commissioner -- Commissioner Regalado: Yeah. Mr. Rosenthal: -- Sanchez, please. Commissioner Regalado: No, but I do think that until a group of commercial building owners -- I don't own any commercial property; just my home -- get together and file suit against the property appraisal [sic] ofMiami-Dade County for price gouging, which is that it is -- I mean, the State Attorney General is very clear in gas prices. Anything more than 13 cent is price gouging. Well, guess what? In any county in the state of Florida, properties will not go up more than 20 percent, any county, Palm Beach, Broward, Hillsborough, Escambia, so in Miami -Dade County, they go up 40 and 60 percent, so there's got to be something wrong, and there's got to be something that the courts will look at it. The minute that the people file suit, I'm sure that the County Commissioners will see the need to change the system and place the property appraisal [sic] on the ballot, and that's whatl can say as an advice to people that are really hurting, like you, and you know, you will go down with your property in two more years. With the way things are -- Mr. Rosenthal: Well, I'm already pulling -- Commissioner Regalado: -- you won't be able to -- Mr. Rosenthal: -- out of equity loans to -- Commissioner Regalado: Yeah. Mr. Rosenthal: -- support my -- Commissioner Regalado: You won't be able to -- Mr. Rosenthal: -- dream. Chairman Gonzalez: All right. Thank you very much. Anyone else from the public? Yes, sir. Go ahead. John Talamas: Yes. My name is John Talamas. I live at 522 San Esteban Avenue, Coral Gables, Florida. I have -- I manage two commercial properties in the City ofMiami for my family. I recently visited the Tax Assessor's Office, andMr. Regalado, I appreciate everything that you're saying. Mr. Sarnoff andMr. Gonzalez, I really appreciate your comments. It's very favorable compared to what we used to hear in the past, OK? But I actually went down to the assessor's office to find out why my -- I was really actually expecting a lower tax bill this year, and I'm here actually to represent my mom and pops, because my mop and pops are the ones that are getting hammered. I have pass-throughs, butt have to try to --I'm not -- we have not increased our base rent in ten years because we're so busy passing on property tax and insurance that I would actually -- I would just actually be calling for a vacancy ifI did that, but I went to -- give me a second and I'll explain to -- I thinkl can satisfy a lot of questions here. I went to the Tax Assessor's Office, and we went through my properties one by one. I found -- we found one mistake on one property, but on the rest of the properties, this is what happen. Our City ofMiami Page 45 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 tax bill is based on January 1 of every year, OK, and there's -- it's almost impossible, like the stock market, to figure out what everybody's property values are on January 1, so what -- basically, what they do is they use the last few months or the last quarter of the previous year, so what we're seeing, like Debbie and some of the other people that are talking here, and what have seen on my tax bill is I saw an increase assessment based on the end of 2006, which was -- still the market was up there. It started to really take effect on a downward trend starting in January, so then when we saw our prop -- our 2006 tax bill, we were really seeing the end of 2005, OK, so by the time the bill comes to us in August, the only thing that the tax appraiser's office can really do for us -- no. What they actually do is they can either confirm their judge -- their assessment or they could try to help you, if they made a mistake, so this is -- now, I know I'm past my time, excuse me. There's so much to say. We went -- we were told for many years by the County, the City -- andl spoke to the County -- that we need to talk to our legislators. Well, we did talk to our legislator. The whole state talked to the legislator. They heard us loud and clear. We went -- we met with Marco Rubio. We wrote letters to the Governor, but the League of Cities, the League of Counties, they sent their lobbyists up there, and they fought us every bit of the way, and we got nothing. It was the commercial properties and the non -homesteaded properties. They were asking for tax relief so what's happening with his reduction, City of Coral Gables reduction, the County's reduction of the millage -- thank God for the Manager, the Coral Gables Manager. I just came from their meeting -- is that we got a lower millage, but you guys did not go there to support us. We needed that support. There was -- I know you all had to protect your budgets. There is a lot of salary increases. There were a lot of increases that were going on, and the money had to come from somewhere, so the next time there's a session, we need your help. This session took three days. It should have taken the full seven days of the session, and it only -- and we got nothing but a watered-down version. I believe the next time -- ands really would appreciate the next time that the citizens call for a session to Marco Rubio, Mr. Pruitt, and the Governor, that the League of Cities and the League of Counties actually go up there and help us figure out a separate millage for commercial properties, a separate millage for non -homes -- the problem is is if he lowers the millage any further to help me, then the non -home -- the homesteaded properties are going to really go down, so then he's going to have a shortfall on the non -- on the homesteaded properties. This is the inequity in the system, so I appreciate you, andl implore what you're doing, andl -- and if you can find a way to lower the millage anymore, we appreciate it, but the next time there is a legislator that's meeting a session, we need your support. We need the County's support, and by God, I just want everybody to know, the School Board is the one that needs to have a little spanking on the back for what they did to us by -- City of Coral Gables lowered the millage; you lowered the millage; the School Board -- I go -- I've been going to private schools all my life. My kids are in private schools. I live right next to Coral Gables Elementary, andl couldn't get Coral Gables Elementary. I couldn't get Sunset, andl live next to Coral Gables High School, and it's a disgrace, and the School Board has all the money in the world, more than what you have, more than what City of Coral Gables has, and it's a shame. Vice Chairman Sanchez: Sir. Mr. Talamas: Yes, sir. Vice Chairman Sanchez: If you look at your trim notice, just like the one that the gentleman provide us, the largest increase is the School Board. Mr. Talamas: Yes, sir, it is, and I'm embarrassed, and they're the largest part of our tax bill. Can I --? Just want to help -- just -- I came from the Coral Gables Commission meeting. They had a very good PowerPoint presentation. The Manager pointed out something very interesting, and it's something that we have here in City ofMiami, too. We have the City ofMiami tax bill. We have the -- there's three parts to our bill: City ofMiami, School Board -- Chairman Gonzalez: County. City ofMiami Page 46 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Talamas: -- County. Vice Chairman Sanchez: County, WASA (Water and Sewer Authority). Mr. Talamas: Well, yeah, but the three major parts is the City, the County, and the School Board. Whenever I have a problem, or as some of these people, like this gentleman right here, who does he complain to? Vice Chairman Sanchez: The City. Mr. Talamas: To you. He doesn't go complain to the County, so you're providing the garbage, you're providing the services, the Police Department -- I see the chief over there -- the firemen. Why do we have --? This is a question -- and the City Manager pointed this out. He didn't point this out, but it put the thought in my brain. Why do we have to have such a high County bill if we're not using their services? I know there could be a small portion coming from the County, but why do we have to have the County bill when the City of Miami's providing the services, City of Coral Gables, Sweetwater, Hialeah, Opa Locka? You name it. Everybody's providing the service, and we still have to pay the County portion. Chairman Gonzalez: Thank you. Mr. Talamas: Thank you for the over time. I appreciate it. Chairman Gonzalez: Thank you, sir. Next. All right. That close the public hearing. Do I hear - - yes, Commissioner -- Vice Chairman Sanchez. Vice Chairman Sanchez: Mr. Chairman, on this item. The proposed millage, and correct me if I'm wrong, is 7.3 mils. Because of the mandated reduction from the State, we are lowering a full millage below last year, which is FY-07. Now, that's about a 13 percent reduction in operating millage. What's our debt service millage at this point? Mr. Boudreaux: The current millage for debt is about .6210. Vice Chairman Sanchez: All right, but the millage and debt is 7.8, right? Mr. Boudreaux: It's being proposed for next year at point 7 -- point 5 -- Mr. Hernandez: Point five seven. Mr. Boudreaux: -- 7. Vice Chairman Sanchez: So on first reading, we set the millage and we can't go above that? Mr. Boudreaux: That's correct. Vice Chairman Sanchez: All right, so on second reading is when we could set it, once it's past the ceiling, at 7.2? Mr. Boudreaux: That's correct. Vice Chairman Sanchez: OK. Chairman Gonzalez: All right. City ofMiami Page 47 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: All right, so move. Chairman Gonzalez: All right. We have a motion on the millage. Is there a second? Commissioner Spence -Jones: Second. Chairman Gonzalez: There is a second. It's an ordinance. Mr. City Attorney. Mr. Fernandez: Yes. The Ordinance was read by title into the public record by the City Attorney. Chairman Gonzalez: Roll call, please. Ms. Thompson: Roll call. Commissioner Regalado? Commissioner Regalado: I'm voting yes on this millage only because we have the time to make reductions to the budget to return to the residents in services and relieve some of the money that we can save. This is -- I'm voting yes this time. If we are not able to achieve that, I will be voting no for the budget on the next session, so this time, it's yes. Ms. Thompson: Commissioner Sarnoff? Commissioner Sarnoff Yes. Ms. Thompson: Commissioner Spence -Jones? Commissioner Spence -Jones: Yes. Ms. Thompson: Vice Chairman Sanchez? Vice Chairman Sanchez: Yes. Ms. Thompson: Chairman Gonzalez? Chairman Gonzalez: Yes. Ms. Thompson: The ordinance has been passed on first reading, 5/0. BH.3 07-01094 DISCUSSION ITEM Office of Strategic A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A Planning, RESOLUTION OF THE MIAMI CITY COMMISSION MAKING Budgeting, and APPROPRIATIONS RELATING TO OPERATIONAL AND BUDGETARY Performance REQUIREMENTS FOR FISCAL YEAR ENDING SEPTEMBER 30, 2008. 07-01094 Legislation.pdf 07-01094 Summary Form.pdf 07-01094-Submittal-Proposed Resolution.pdf MOTION A motion was made by Commissioner Regalado, seconded by Commissioner Sarnoff, and was passed unanimously, to reallocate the entire budget of the Department of Economic Development to the Miami Police Department to hire additional police officers. A motion was made by Vice Chairman Sanchez, seconded by Commissioner Spence -Jones, and failed, with Chairman Gonzalez and Commissioners Regalado and Sarnoff voting no, to City ofMiami Page 48 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 reallocate funds from the nondepartmental account to fund the budget of the Department of Economic Development. A motion was made by Vice Chairman Sanchez, seconded by Commissioner Regalado, and was passed unanimously, to allocate $3.6 million out of the nondepartmental account to the Department of Fire -Rescue for capital improvements. Vice Chairman Sanchez: All right. Chairman Gonzalez: All right. BH.3. Vice Chairman Sanchez: On PH.3 [sic], Commissioner Regalado, you could speak till the cows come home 'cause that's the item pertaining to the budget, and we could address the entire departments. Commissioner Regalado: Here we go. Vice Chairman Sanchez: All right. Commissioner Regalado: OK. I have a motion to eliminate the Economic Development Department and transfer the whole budget to the Police Department to be able to hire new police officers, especially neighborhood resource officers for every NET (Neighborhood Enhancement Team) in the City ofMiami. That would be part of the motion within this discussion. Vice Chairman Sanchez: All right. Chairman Gonzalez: We have a motion. Is there a second? Commissioner Sarnoff Second. Chairman Gonzalez: There is a second. All in favor, say "aye." Vice Chairman Sanchez: No. It's -- roll call. Chairman Gonzalez: OK. Roll call. Priscilla A. Thompson (City Clerk): Roll call. Commissioner Spence -Jones? Commissioner Spence -Jones: I -- Commissioner Regalado, can I please ask for us to at least allow for them to go through whatever -- apparently, you do have a presentation on this, correct? Michael Boudreaux (Director, Management and Budget): I presented that presentation. Commissioner Spence -Jones: Right, right. Commissioner Regalado: He already did. Chairman Gonzalez: Yes, he already did. Commissioner Spence -Jones: I -- all right. Commissioner Regalado: You want a rerun? Commissioner Spence -Jones: No. City ofMiami Page 49 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: No. Commissioner Spence -Jones: No, I don't want a rerun -- Commissioner Regalado: Go ahead. Commissioner Spence -Jones: -- but need to ask this question, Commissioner Regalado. We have up until the 27th before we make a final decision on the budget, correct? Commissioner Regalado: Well, you can vote no on my motion. You can deny the NET offices police officers. Commissioner Spence -Jones: Now, why would you even want to state me denying police officers and you know we need police officers? Commissioner Regalado: Because you want and you need the same thing that I need and want. The same thing -- Commissioner Spence -Jones: Yeah, but I -- Commissioner Regalado: -- that I (UNINTET,T IGIBLE). That's for me the only solution. It's either that -- because you know, Commissioner Sanchez is right. Everybody doesn't want to die, or whatever; everybody wants to go to heaven, but besides -- the other option is say, I will ask the Manager to go into the reserves and get $1.5 million to hire more police officers, and you know, that be the cool thing to do. That is politically correct, but I'm taking the brunt. I'm the bad guy. I'm trying to eliminate one good department, but the problem is us finding our priorities, and you know, I see it everyday when I wake up, when I go by street, when I meet with the residents. I have here -- andl brought more than 40 e-mails (electronic), people with broke windows in their cars, people that -- in one single street, 12 Street, Southwest, District 4, five robberies in Shenandoah in one week, one by one by one in five -- five houses in one block. What do they want? Police protection. What can we give? Police protection, you know, but we cannot ask the Chief of Police or the deputy or the commander, hey, we need to patrol Shenandoah 24/7. We need to give him the resources, so it's about priority. It's not about being effective. It's not about grandiose plans. It's not about, you know, the -- it's just simple. Taking a decision -- you ask us to take a decision. Chairman Gonzalez: All right. Let's -- Vice Chairman Sanchez: No. Larry Spring (Chief Financial Officer): Mr. Chair. Chairman Gonzalez: -- hear the decision. Vice Chairman Sanchez: The item under discussion -- Chairman Gonzalez: Is it a yes or no? Vice Chairman Sanchez: Well, no. Let's discuss the item. Commissioner Spence -Jones: No, no, no. Vice Chairman Sanchez: I mean, if we could have a -- City ofMiami Page 50 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Spence -Jones: We can discuss the item. Vice Chairman Sanchez: -- healthy debate -- look, every budget hearing we go through this, guys. It's not the first time. I think we've all been through this. I mean, Commissioner Sarnoff is the first budget hearing, but every budget hearing, without -- you know, kidding aside, there's respect among us. We have to make some tough decisions here. That's just the bottom line that we have to do. Let me tell you how I feel about this. City ofMiami does need an economic development department. I mean, it is the department that goes out and promotes and sells the City to bring in businesses, whatever it may be. Whether it's retail, restaurant, corporate America, whatever, and that boils down to new jobs and new taxes for this city. Now, you want to make the argument about police officers, that's perfectly fine. I can make the argument that right now, we have a hundred positions, police officers that are going to be going through the academy, and they'll be hitting the streets, and this budget in itself provides an additional 25 more new positions of police officers. If they all go through the police academy, and they all pass their FTO (Field Training Officer) period, then we will have a hundred and twenty-five new police officers out on the street. To take a department that I think it's vital to the City ofMiami and do away with it without even considering with the City Manager or giving it some thought, I think it's, my opinion, with all due respect, irresponsible. Chairman Gonzalez: How many police officers --? Commissioner Regalado: Excuse me, excuse me. You have just call me irresponsible, and that is unfair, because I consulted with the City Manager. How many times, Mr. City Manager -- the thing is that you don't know because I'm not supposed to talk to you because of the Sunshine law, but I did consult with the City Manager. I did consult with Larry. I did consult with Michael, and we discuss this, and we discuss the NROs (Neighborhood Resource Officers) in details for three or four hours several time, andl tell you something. You chair an agency, sir -- Vice Chairman Sanchez: Yes, I do. Commissioner Regalado: -- that does exactly what Economic Development does. Vice Chairman Sanchez: For downtown. Commissioner Regalado: They went to Las Vegas. Vice Chairman Sanchez: For downtown -- Commissioner Regalado: They went to Las -- Vice Chairman Sanchez: -- not the entire city. Commissioner Regalado: -- for downtown, for the core of downtown. I -- I'm just here eager to know how many shopping centers Economic Department has brought to Flagami? How many new clients have brought to Flagami? Andl tell you something. There is no way, no way that you can bring development, new business to the City ofMiami, downtown, or Allapattah, or Flagami, if you don't get crime down, if you don't get the perception that crime is gone in downtown, the fear of going to downtown, the fear of going to Allapattah, the fear of going to Overtown, the fear that not being alone on Southwest 8th Street and 34th Avenue, because there is a lot of prostitutes that would try to lure you, and there is a lot of people and pimps that will try to sell drugs. There is no way that we can sell a city that is not safe to live or to work in, so this is not being irresponsible. I thought about it. I spoke to the Manager. He may not agree with me, but you know what? It's very simple. Just vote. I mean, I don't have -- like you said -- I mean, you're contradicting yourself because you just told me -- City ofMiami Page 51 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: Why am I contradicting myself? Commissioner Regalado: -- one hour ago, if you have three votes, you can do what you need to do. That's what I'm doing. I'm following your lead, so now you're saying that I'm irresponsible. No. This is not fair. This is unfair for you to attack me personally because -- Vice Chairman Sanchez: I'm not attacking you personally. Commissioner Regalado: -- I don't think -- you just said I'm irresponsible. Chairman Gonzalez: I -- Commissioner Regalado: You just said -- Commissioner Spence -Jones: Mr. Chairman. Commissioner Regalado: -- that we need to get the things on the table, get the votes, if we have the vote. That's it. Chairman Gonzalez: I need -- Commissioner Regalado: It's very simple. Chairman Gonzalez: -- to ask a question. May I, please? Chief Timoney, how many -- Chief John F. Timoney (Police): Chief Solomon. Chairman Gonzalez: -- sworn police officers we had back in 19 -- I'm sorry -- back in 2003? Chief Timoney: A thousand forty. Chairman Gonzalez: How many police officers -- sworn police officers do we have today? Chief Timoney: That's what you're budgeted for. You probably had well under a thousand. Right now we have about a thousand and sixty-seven. We have a hundred vacancies, which we're thankful for the contract; we'll fill that, and then the additional twenty five, so we'll have -- that's a floating number -- anywhere -- the ability to hire anywhere from 125 to 132 over the next year, fiscal year. Commissioner Sarnoff And you'll lose six a month, correct? That's your loss break. Chief Timoney: That's generally what it is -- Chairman Gonzalez: Yeah. Chief Timoney: -- about six a month. About two years ago, it was eight or nine a month. Commissioner Sarnoff Right. Chief Timoney: It's now down to six a month, and so we should be able the replace the attrition and then hire those additional ones. In any event, all things being equal, we're looking to go to - - it'll be 11 -- I think it's 1187 or 1177 when we finish with the -- Commissioner Sarnoff And, Chief -- City ofMiami Page 52 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chief Timoney: Yes, sir. Commissioner Sarnoff -- a city of our size, in the upper northeast, so a city of approximately 500,000 people -- Chief Timoney: Correct. Commissioner Sarnoff -- would have a 4.5 per thousand police officers to citizens -- Chief Timoney: Right. Commissioner Sarnoff -- ratio. Chief Timoney: Right. Commissioner Sarnoff We have a 2.5 -- Chief Timoney: Correct. Commissioner Sarnoff -- to 1,000 -- Chief Timoney: Right. Commissioner Sarnoff -- and your goal would be someday to get to 2200 or 2500 police officers, correct? Chief Timoney: I'll be in the old policemen's home when that happens. Commissioner Sarnoff You might be, but -- Chief Timoney: No. In other words, in a city like this that's really growing fast, with greater demands, obviously, with greater demands, that needs to have a special traffic unit, that wants to see police officers on the foot beat, not just in cars; all those things that you do see in other cities northeast, you would need about 2,200 police officers. Commissioner Sarnoff Right. You use -- as a matter of fact, you use an example -- andl heard your speech. I thought it was great. You used Washington, DC (District of Columbia) and Philadelphia as two prime examples -- Chief Timoney: Yes, sir. Commissioner Sarnoff -- and in order for us -- and as we create density in Miami, which is what we're doing -- Chief Timoney: Exactly. Commissioner Sarnoff -- and we start looking a lot more like a northeast city -- Chief Timoney: Right. Commissioner Sarnoff -- we had better start policing, I think you said it, like a southern or a western city. Chief Timoney: Correct. City ofMiami Page 53 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff Because the ratios that you quoted us were the ratios of less dense, western and southern cities. Chief Timoney: Right, exactly, which has its own issues, more spatial than anything else, but when you get high-rise buildings, congesting traffic, all those other things, you need the police at a higher density. Commissioner Sarnoff One of the things we could do right now to help you would be to give you as many PSAs (Public Service Aides) as you could possibly handle, correct? Chief Timoney: PSAs are very valuable, absolutely. Commissioner Sarnoff And a PSA --I don't know what the training time is, but suspect it's something under what a uniform officer is. Chief Timoney: Oh, well under, yeah. It's around three months altogether. Commissioner Sarnoff So we could actually fill your ranks with PSAs, and inevitably, isn't it your hope that those PSAs do well and become uniformed officers? Chief Timoney: Well, there's quite a few, including Chief Fernandez, who -- Commissioner Sarnoff Started off -- Chief Timoney: -- started off as PSAs, exactly. I started off as a PSA. Commissioner Sarnoff Well, there you go. That's the model right there. Vice Chairman Sanchez: Can I --? Commissioner Spence -Jones: Mr. Chairman, can I just ask the chief -- and I'm glad that you asked a lot of those very detailed questions of the chief because it also educated me on how this - Chairman Gonzalez: Go ahead. Commissioner Spence -Jones: -- because I was always under the impression, chief that while you may have -- andl think assistant Chief Burden explained -- officers or individuals that are going through the training -- Chief Timoney: Yes. Commissioner Spence -Jones: -- you still have a recruitment period. It still takes time within that period to even get people, one, recruited, on board, trained, and all of that, correct? Chief Timoney: Exactly. You're looking at about 12 to 14 months before you realize a fully fledged police officer. Now, after six months, you're going to see them out there where they'll be in field training, they'll be riding with another officer. By the time that officer becomes a full-fledged police officer, where he or she could ride by themselves, you're talking about 12 to 14 months. Commissioner Spence -Jones: OK, and the PSAs, the same thing? Chief Timoney: No. PSAs, they have the three months of -- City ofMiami Page 54 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff Three months. Chief Timoney: -- training and they're out -- what is it, Adam? Correct, three months? Three months of training, and then they're ready to go, and then the beauty for us is it really is -- it's a funnel process of recruitment for us because quite a few of our -- Commissioner Spence -Jones: A lot of them move on -- Chief Timoney: -- PSAs -- Commissioner Spence -Jones: -- to that. Chief Timoney: -- then go on to become police officers. Commissioner Spence -Jones: And just -- as Commissioner Sarnoff has mentioned earlier, at this particular point, PSAs for you would be very valuable to have in the neighborhoods? Chief Timoney: Oh, without a doubt. I mean, listen, I always prefer to have cops, but if you're telling me can we use PSAs, do they serve a useful function, absolutely. Particularly, in the area of traffic, but also they write reports where other officers can now, you know, deal with more serious crimes, so no -- and again, there's a lot of benefits to PSAs. Commissioner Spence -Jones: All right. Thank you, chief for clearing that up, and -- Chief Timoney: You're welcome. Commissioner Spence -Jones: -- thank you, Commissioner Sarnoff -- Vice Chairman Sanchez: Mr. Chairman. Chairman Gonzalez: Yes. Commissioner Spence -Jones: -- for bringing that up. Vice Chairman Sanchez: Mr. Chairman. Chief as it is right now with this budget, you're looking at a hundred, plus twenty five, that's going to be a hundred and twenty-five new police officers; say everything goes well -- Chief Timoney: Correct. Vice Chairman Sanchez: -- they're able to pass their background, they're able to pass -- Chief Timoney: Right. Vice Chairman Sanchez: -- they're certified by FDLE (Federal Department of Law Enforcement) and their FTO. You're also getting 53 PSAs. Chief Timoney: Yes, sir. Commissioner Sarnoff Forty. Pedro G. Hernandez (City Manager): Forty-three. Vice Chairman Sanchez: I'm sorry. City ofMiami Page 55 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff Forty-three. Vice Chairman Sanchez: Forty-three, yes. I apologize. Getting a little late. Forty-three PSAs. Now, I'm sure it's not enough, but wouldn't you say that when people don't have jobs, crime goes up? Chief Timoney: Oh, it's clearly -- I mean, clearly, economics -- there are probably four or five factors that cause crime; economics being one of them. Commissioner Sarnoff Not our department. Vice Chairman Sanchez: And my only concern thatl want to state here is that we are abolishing a -- an entire department of the City. We're doing away with a completely -- a complete department, who no longer exist, that is economic development for a city, such as Miami that has to constantly compete with other cities to be able to attract new businesses to Miami, and that ends up being new jobs and new taxes for the City. That's the only concern that have. Commissioner Sarnoff Well, let -- can I ask you a question? Because -- Vice Chairman Sanchez: Sure. Commissioner Sarnoff -- how many cities -- Vice Chairman Sanchez: We could debate this -- Commissioner Sarnoff -- of our size have economic development departments? Because I know that answer. Vice Chairman Sanchez: Well, please let me know. Commissioner Sarnoff None. Vice Chairman Sanchez: Is that --? Mr. Hernandez: Commissioner, but they -- Vice Chairman Sanchez: I don't think that's -- Mr. Hernandez: -- probably have it as part of another department. Commissioner Sarnoff Community department. Vice Chairman Sanchez: No, no, no, no, because I -- look, I've been -- Mr. Hernandez: So that's why -- Vice Chairman Sanchez: -- New York where they had economic development. Mr. Hernandez: -- that's why -- Vice Chairman Sanchez: Maybe not -- Commissioner Regalado: New York? Chairman Gonzalez: Yeah, because -- City ofMiami Page 56 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: Because it's eight million people. Chairman Gonzalez: -- you can't compare New York to -- Vice Chairman Sanchez: Well -- no, you can't, but -- Chairman Gonzalez: --Miami. Commissioner Regalado: Eight million people. Vice Chairman Sanchez: -- I'm telling you cities that do have economic development -- Chairman Gonzalez: Yeah, but -- Vice Chairman Sanchez: -- andl think it's a vital part of a city not to have an economic department. Mr. Hernandez: Yes. Chairman Gonzalez: I do have another question. How many businesses -- Vice Chairman Sanchez: It's absurd. Chairman Gonzalez: -- have the economic development department brought to the City of Miami? Commissioner Spence -Jones: Can --? Chairman Gonzalez: How many jobs have they created in the last year? Lisa Mazique: Lisa Mazique, director of Economic Development. Commissioners, with respect to job creation, obviously, that is incumbent upon the industries that the City does have. As a department, we clearly partner and collaborate with a lot of the entities that do a lot of training, as we do, so single-handedly to say that we've created jobs, I think our goal is to support industry, to hire employees, so I don't have -- Chairman Gonzalez: How many -- Ms. Mazique: -- a job count for you. Chairman Gonzalez: -- industries, how many business have you brought to the City ofMiami? Ms. Mazique: Well, what we've done is support and marketed the City -- Chairman Gonzalez: Support marketing for the City. Ms. Mazique: -- as an industry, as a prime location for business development. Chairman Gonzalez: That's -- with that we have another agency that does marketing. Ms. Mazique: Well, even more so -- oh. Chairman Gonzalez: All right, let's vote on the issue because -- City ofMiami Page 57 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: Can I ask a question to the chief -- Chairman Gonzalez: I mean, it's simple; vote it up or down. Commissioner Regalado: -- because I think -- yeah, yeah. I think it -- but it's important. Jorge L. Fernandez (City Attorney): Point -- Commissioner Regalado: You know, what is the most -- Vice Chairman Sanchez: Explain it. Commissioner Regalado: -- chief one of the most upsetting things to resident and I'm sure that you have receive these complaints, too, because we get it all the time, is that when someone is a victim of a crime, small crime -- you know, they took the Christmas ornaments, all the trees, and all that from the front yard -- Chairman Gonzalez: You have one here. Commissioner Regalado: -- and they call -- Chairman Gonzalez: You have one here. Commissioner Regalado: -- the non -- Chairman Gonzalez: Who are you? Commissioner Regalado: -- emergency number to -- I want to report a crime, and say you have to come to the south -- Chairman Gonzalez: District. Commissioner Regalado: -- central station, Flagler and 22nd I can't. Well, you know -- well, we cannot send a police officer to do the report, and then people get frustrated, but the most interesting thing happen to a person that lives on 43rdAvenue. Someone during the night stole the four tires on his car, and it was left on like some rocks, you know, and then he call, and he said, look, somebody stole the tires of my car. Well, you have to come here and report that. I can't; I don't have a car. They said, well, we cannot send a police officer, so if these people were to get a visit from the PSA, they would have -- they will feel exactly, maybe not as safe, but as getting a police officer respond. In the past, we used to had -- we used to have PSA at the NET office; no longer we have it. People would go there and file all these small report, so you know, it is about -- it's about the most pressing thing. I would tell you that I'm going --I'm -- listen, Commissioner Gonzalez, the Chairman, I've seen it, walking door-to-door. I've seen you -- I went to the airport andl saw you all sweaty walking to (UNINTELLIGIBLE). I would tell you -- andl have visited a lot of people. We're doing a meeting a week with the resident. I will tell you that the complaint is about the lack of police. Chairman Gonzalez: Yeah, it is. Commissioner Sarnoff Well, and in Coconut Grove, we actually had businesses broken into all along the street. Chief Timoney: I got your emails, yeah. Commissioner Sarnoff Yeah, and we're having a meeting -- City ofMiami Page 58 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chief Timoney: By the way, in my own defense, I live in the City, and for me the number one issue -- well, I live in the downtown area. The number one issue is quality of life. Commissioner Sarnoff Right. Chief Timoney: Right? And it's not that I'm picking on the homeless, but 90 percent of the crime in the downtown area is committed by people who are homeless. It's not their status; it's their activity that needs to be addressed. Chairman Gonzalez: All right. Thank you, chief. Chief Timoney: Thank you. Chairman Gonzalez: Yes, Mr. City Attorney. Mr. Fernandez: Yeah. Point of order. I confirmed with the City Clerk that the pending motion is a motion that contains an element to abolish a department. Chairman Gonzalez: Yes. Mr. Fernandez: In my opinion, according to our Charter, in order for you to do that -- you have the power to do that under your Charter -- it requires a separate ordinance. Let me read to you the Charter. Commissioner Regalado: OK, OK, OK, OK, OK. My motion is to reallocate -- Mr. Fernandez: All right. Commissioner Regalado: -- the whole budget of the Economic Development Department to the Police Department -- Commissioner Sarnoff Right. Commissioner Regalado: -- in order to hire more PSAs and police officers. Chairman Gonzalez: Is there a second? Commissioner Sarnoff Second. Chairman Gonzalez: There is a second. Commissioner Spence -Jones: Right, and l just -- Mr. Hernandez: Mr. Chairman, we're dealing here with a discussion item, and I'd like to offer the following. This is the first hearing on the budget. Vice Chairman Sanchez: Yeah. It's going to be an interesting night. Mr. Hernandez: Commissioner Regalado wants to look for another million and a half dollars for police -- to support police. I'm willing to look for -- Commissioner Regalado: Can you find it? Mr. Hernandez: -- that million and a half, where what he's proposing would be one of the City ofMiami Page 59 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 options, but we may have other options that may work just as well and may still, from an administrative perspective, be more efficient. Vice Chairman Sanchez: But -- Commissioner Regalado: Well -- Vice Chairman Sanchez: -- see that's not the -- that's not the issue here. The issue here is you're holding a department hostage on this issue. If that's the issue, the money could come out of the nondepartmental where there's going to be some money left over. There's $6 billion there. Just work out through the process of budget and try to get money for that, but don't hold a department hostage making those arguments. I mean, I just -- once again, I -- the process in itself -- I've been here for ten years; I've never seen a budget hearing like this one. Chairman Gonzalez: All right. We had a motion. Commissioner Regalado: Commissioner. Chairman Gonzalez: We had a second. Commissioner Regalado: Wait a minute. Wait a minute. Chairman Gonzalez: Why don't you do --? Commissioner Regalado: Wait a minute. We have seen budget hearing -- Vice Chairman Sanchez: No, no, no, no. Not the -- Commissioner Regalado: -- that runs up to -- Vice Chairman Sanchez: -- tactics that are being used -- Commissioner Regalado: -- 3 a.m. -- Vice Chairman Sanchez: -- in this -- Commissioner Regalado: -- and we have seen motions of Commissioners reallocating the whole budget from departments to another department. I don't know what is your shock because -- Vice Chairman Sanchez: My -- Commissioner Regalado: -- I mean, we try to get information as to what -- the Chairman tried to get how many jobs, how many -- in my district, how many. I'm just saying, it is a priority, but I guess, ifyou want the status quo, fine -- Vice Chairman Sanchez: No. Commissioner Regalado: -- vote this down. Vice Chairman Sanchez: I -- Commissioner Regalado: It is as it is. The Manager will find the money. Actually, we are reducing $51 million, and no one is getting fired in the City of Miami, so this Manager, and Larry, they make magic, and Mike. You make magic because you can reduce $51 million and no one gets fired, and -- City ofMiami Page 60 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: Madam -- Commissioner Regalado: -- when the special session in Tallahassee was being held, you had the Managers from the County saying there will be no firefighters, there will be no rescue, there will -- we're going to close -- Mr. Hernandez: It wasn't us. Commissioner Regalado: You didn't. Mr. Hernandez: It wasn't us. Commissioner Regalado: You didn't. It was the Manager that is not the Manager -- Chairman Gonzalez: People -- Commissioner Regalado: -- anymore. Chairman Gonzalez: -- I suggest that you exercise the power of your vote to vote an item up or down. Vice Chairman Sanchez: But -- Chairman Gonzalez: It's that simple. Commissioner Regalado: That's it. It's so simple. Vice Chairman Sanchez: -- the -- Commissioner Regalado: I mean -- Chairman Gonzalez: I mean, you know -- Commissioner Regalado: -- I don't see -- Chairman Gonzalez: -- we all act like little kids here, you know. Vice Chairman Sanchez: -- but, Mr. Chairman, ifI could -- just indulge me with this. It is additional police officers that we want, andl think if that's the will of this Commission based on the 25 and the 43, then the proper thing -- Chairman Gonzalez: But what is --? Vice Chairman Sanchez: Wait a minute. Hold on, hold on, hold on. Let me just explain it to you. Let me just explain it to you. The proper thing to do is to look where the funds are available, and in this case, you have $5 million, possibly 6from the nondepartmental action to meet shortfalls, so let's look at that number and see if we could come up with additional police officers. I'm entitled to that, but when you have a Commissioner that brings a motion to abolish a department, a complete department thatl think is vital to the City ofMiami -- Chairman Gonzalez: But that is -- Vice Chairman Sanchez: -- it's a concern to me. City ofMiami Page 61 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: -- but the problem is -- Commissioner Regalado: But you can vote no. Chairman Gonzalez: -- but just a minute. Just a minute. Commissioner Regalado: You can vote no. Chairman Gonzalez: Allow me. That is his right, as it is my right. I was looking at some line items here. Vice Chairman Sanchez: All right. Commissioner Regalado: I'm as -- Chairman Gonzalez: It is my right to propose -- Commissioner Regalado: -- a Commissioner, as you are, I have the same rights that you have. Vice Chairman Sanchez: Yes, you do. Chairman Gonzalez: Exactly. Commissioner Regalado: You have the right to vote no. I have the right to present the motion. Chairman Gonzalez: I do have the right to cut some departments, because you know what? Vice Chairman Sanchez: We do. Chairman Gonzalez: This is the day, this is the time of the year, this is the era where we are taken seriously. Throughout the year, many departments laugh at us, you know. We're a joke. Well, today we're not a joke. Vice Chairman Sanchez: No. Chairman Gonzalez: Today we have the pen, and today we have the book, and all we have to do is just draw lines. It's that simple. Commissioner Spence -Jones: Mr. Chairman. Chairman Gonzalez: It is -- today is our day. I -- we already have a motion. We already have a second for the second time. Will you please do roll call because we're still in BH.3; it is 9: 32. If you want to stay here until tomorrow morning, just let me know so I can call a break; we go out; we have dinner, you know. Commissioner Spence -Jones: Mr. Chairman. Chairman Gonzalez: Refresh a little bit; come back and stay here until tomorrow morning. I don't have no problem. I'm used to have no sleep. Commissioner Spence -Jones: Mr. Chairman -- Chairman Gonzalez: I mean, I can take it. Commissioner Spence -Jones: -- I know that we're going to call a vote on it. You know, it makes City ofMiami Page 62 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 it very difficult for me, as a sitting Commissioner, to choose between economic development, which is supposed to spur, you know, jobs, employment -- I mean, excuse me, employment, new businesses in the areas and compare that to police, quite frankly, because we all know, in my particular district, just like some of your -- parts of your neighborhoods in your district, like Overtown, Liberty City, Little Haiti, I mean, how can I even make a choice -- Chairman Gonzalez: Well -- Commissioner Spence -Jones: -- between -- let me just finish my statement. I let everybody else say what they had to say, you know. It's obvious that, you know, we all would choose police because we don't have enough eyes on the streets, so it's very difficult to make a decision -- well, it's -- actually, it's not difficult to make a decision ifI have to compare between police and a department. I do agree with Commissioner Sanchez on his issues and his concerns, but -- what I wanted to at least say before I make my vote, Mr. City Manager, I want to be clear on the issue. Commissioner Regalado asked you a very pointed question. Are you able to make up the 1.3, 1.4 or find the 1.3 to accommodate the request of more officers? Commissioner Regalado: No, no, no. Chairman Gonzalez: One point six. Commissioner Regalado: I didn't ask that question. Chairman Gonzalez: No. Commissioner Regalado: I did -- Vice Chairman Sanchez: Let's vote. Commissioner Regalado: -- I never ask that question -- Vice Chairman Sanchez: Hey, call the question. Commissioner Regalado: -- and any -- Commissioner Spence -Jones: What -- Commissioner Regalado: -- other Commissioner -- Vice Chairman Sanchez: Call the question. Chairman Gonzalez: Let's call the question. Vice Chairman Sanchez: Call the question. Commissioner Regalado: -- could have. Commissioner Spence -Jones: Well, can -- well, I'm asking it. Vice Chairman Sanchez: Call the question. Commissioner Spence -Jones: I'm going to ask it. Let me ask it then. Vice Chairman Sanchez: Call the question. City ofMiami Page 63 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Spence -Jones: Mr. Manager, are you able to find the dollars -- he didn't ask it; I'm asking it -- Commissioner Sarnoff That's -- Commissioner Spence -Jones: --from somewhere else to -- Vice Chairman Sanchez: Call the question. Commissioner Spence -Jones: -- make -- to accommodate that? Mr. Hernandez: Commissioner, I would like to have that opportunity. This is the first budget hearing, andl would like to have the opportunity to do so. Vice Chairman Sanchez: Call the question. Chairman Gonzalez: Roll call, Madam City Clerk. Ms. Thompson: Roll call. Commissioner Spence -Jones? Commissioner Spence -Jones: I'm going to have to agree with Commissioner Regalado, yes. I mean -- Ms. Thompson: Vice Chairman Sanchez? Vice Chairman Sanchez: Yes. Ms. Thompson: Commissioner Sarnoff? Commissioner Sarnoff Yes. Ms. Thompson: Commissioner Regalado? Commissioner Regalado: Yes. Ms. Thompson: Chairman Gonzalez? Chairman Gonzalez: Yes. Ms. Thompson: That's a 5/0 vote. Vice Chairman Sanchez: Mr. Chairman, couldl be recognized to proffer a motion? Chairman Gonzalez: Yeah, go ahead. Vice Chairman Sanchez: That motion would be to take that amount that was taken out of that department from the nondepartmental account, which there's a balance of about $6 million that will probably be used to meet some shortfall, and put it back into economic development. So move. Commissioner Spence -Jones: Second. Chairman Gonzalez: What was that again? Vice Chairman Sanchez: You want to play Poker, we'll play Poker. City ofMiami Page 64 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: All right. Commissioner Sarnoff Let's vote, let's vote. Chairman Gonzalez: All right. Madam City Clerk, roll call again, please. Ms. Thompson: Roll call. Commissioner Regalado? Commissioner Regalado: No. Ms. Thompson: Commissioner Sarnoff? Commissioner Sarnoff No. Ms. Thompson: Commissioner Spence -Jones? Commissioner Spence -Jones: Yes. Ms. Thompson: Vice Chairman Sanchez? Vice Chairman Sanchez: Yes. Ms. Thompson: Chairman Gonzalez? Chairman Gonzalez: Let me tell you about my vote. I ask three basic questions: How many police officers we had in 2003, how many police officers we have today, how many jobs have been created by this department in the City ofMiami; I couldn't get a straight answer. How many industries or new business have been attracted to the City ofMiami? I couldn't get an answer. As far as my district is concerned, the industries and the business that we have in Allapattah, and we have close to 500, were created by the assistance of a community -based organization called Allapattah Business Development that was created back in 1982 by the Office of Community Development and by the Allapattah Chamber of Commerce that went out there and work with the merchants and work with the industry of TV (Television) and radio industry to attract people to the neighborhood, so that's how the 500 businesses that we have in Allapattah that were created, and that's how they have been remaining, and they continue to come to the neighborhood, but I have to agree with Commissioner Regalado, that for maybe eight, ten years no one wanted to come back to Allapattah and invest money. When we started changing the numbers on crime and crime statistics, and as Mariano mention it, thank you through the problem -solving team that we have in Allapattah, the excellent job that they're doing, people are seeing the police out there everyday patrolling, arresting people, and doing what they're supposed to do. People are starting to come back to that neighborhood with new businesses, new industries, and new investments, so my vote is no. Ms. Thompson: Then the motion to reallocate the funds from the departmental [sic] account fails, 2/3. Vice Chairman Sanchez: OK, and we move on. Commissioner Spence -Jones: Mr. Chairman -- Chairman Gonzalez: B -- Commissioner Spence -Jones: -- I know -- Chairman Gonzalez: Yes, ma'am. City ofMiami Page 65 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Spence -Jones: I would like to ask the Manager something. I mean, just because I would like to know it from a personal perspective, you know, it's very easy to sit up here and make a vote on a issue and -- that is going to affect the lives of other people, andl would like to know, first of all, how many people are in that department so I'm very clear on that. I do know we just saw the director of the department, an African -American woman that we recruited to come here to run this department. I wanted to ask this question: How many people are in that department? Mr. Hernandez: The department has been in place for just about, I would say, one year, and right now, it has 12 positions; 7 of which are filled, and you know, besides working on developing -- Vice Chairman Sanchez: We have weakened the City. Mr. Hernandez: -- opportunities for employment. Vice Chairman Sanchez: We have weakened the City. Mr. Hernandez: We are -- we also work on Brownfield remediation, providing additional opportunities for redevelopment of lands, and new market tax credits, so they help us in bringing any additional monies to the City. They also -- we plan to have them help us with setting up a community small business enterprise program, which is very much needed for small contractors and also for small professional firms, so I mean, it's difficult for them to be able to show performance numbers when they have been created -- Commissioner Spence -Jones: Less than a year. Mr. Hernandez: -- just a year. Commissioner Spence -Jones: Less than a year, and I just need to ask you a very pointed question, because, again, you're talking about seven people's lives that are going to be affected by a vote that we make. We're going to go home tonight, go to bed; see our families, and it'll be over. My question is what kind of accommodations are you going to come back to us before September 27 to identify other ways in which these individuals will be able to continue to work along with us in the --? Mr. Hernandez: Commissioner, my -- Commissioner Sarnoff Whoa. There's no savings in that. Mr. Hernandez: -- ifI may, my -- Commissioner Spence -Jones: I mean, we just made a decision to -- Mr. Hernandez: Yes. Commissioner Spence -Jones: -- you know, fire seven people. Mr. Hernandez: -- concern is that I felt that this was acted in haste. This is the first budget hearing. We had the opportunity of -- two weeks between the first budget hearing and the second budget hearing to properly analyze the impact and bring it back to you, and also provide other options as to how to bridge that gap. We could even consider a consolidation of the department, because I think that the needs are still there and the services are still demanded, so somehow, we have to find a way to continue to provide those services. City ofMiami Page 66 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Spence -Jones: And then just understand my viewpoint, and I'm going to turn it back over to the Chair. You know, one of the things I always push very hard from an Administration standpoint, is to really make sure that we -- there is some sort of balance, and who's in lead -- and from a leadership standpoint in many of these departments. You know, here we have one African American -- I'm just going to put it out there -- female that's a director of a department. Clearly, now I'm down to only -- going from four to three people in the whole City ofMiami as directors, you know, so -- you know, when we start talking about these type of issues, it goes beyond just the departments. We're talking about the lives of individuals, andl understand their point -- Vice Chairman Sanchez: Got another -- Commissioner Spence -Jones: -- that they're trying to make tonight, andl understand that we need to reduce in cost. Commissioner Sanchez turned around and at least offered some sort of solution to it, but obviously, that wasn't enough, but tonight we've lost seven positions tonight, and four of those positions were African Americans -- Mr. Hernandez: Commissioner. Commissioner Spence -Jones: -- but I just -- I needed to make sure -- I don't want to beat a dead horse, butl think that, you know, to me, you know, it's shameful how it all -- how this whole situation happened. Mr. Hernandez: Well, let's sort of clarify the point. Vice Chairman Sanchez: Hey, listen. Mr. Hernandez: Tonight they're unfunded. Hopefully, something could be worked out -- Vice Chairman Sanchez: Hey -- Mr. Hernandez: -- between today and the last budget hearing. Vice Chairman Sanchez: -- it's the first budget hearing. We lost the battle, but the war has not been lost. Chairman Gonzalez: Can we move to -- Vice Chairman Sanchez: All right -- Chairman Gonzalez: -- BH -- Vice Chairman Sanchez: -- so let's move on. Chairman Gonzalez: -- 4 or --? Vice Chairman Sanchez: Excuse me? Chairman Gonzalez: Can we move to BH.4? Vice Chairman Sanchez: No, no, no. This is the budget hearing, and I'd like to make a complete Commissioner Spence -Jones: And you're going to have some comments. City ofMiami Page 67 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: -- I'd like to be recognized to make -- to proffer another motion. Chairman Gonzalez: On the same item? Vice Chairman Sanchez: No, not on the same item. On another item. Chairman Gonzalez: Under BH.4? Vice Chairman Sanchez: Yes, sir. This is the budget. Commissioner Spence -Jones: No. We still on the budget. He -- that was just one -- Vice Chairman Sanchez: Yes, so ifI -- Commissioner Spence -Jones: -- item. Chairman Gonzalez: BH.4. Vice Chairman Sanchez: -- could be recognized. Chairman Gonzalez: I'm calling BH. 4. Vice Chairman Sanchez: Mr. Chairman, with the fire fee reduction, the Fire Department will be taking a cut of about four -- what's the number? -- $4 million in capital improvement? Mr. Boudreaux: That's correct. Vice Chairman Sanchez: Can we -- so it's how much? Give me an exact figure. Mr. Boudreaux: An exact figure based on what we had expected to collect in '08 -- Vice Chairman Sanchez: Yes. Mr. Boudreaux: -- would have been about $3.6 million. Vice Chairman Sanchez: Yes, sir, and the Fire Department is as important as the Police Department, especially when it comes to rescue, when we have elderly in our community and people that need care and transportation. I would like to proffer to take that amount of four point how much? Commissioner Sarnoff Three point six. Mr. Boudreaux: Three point six. Vice Chairman Sanchez: -- 3.6 out of the nondepartmental account to allocate to the Fire Department for capital improvements. So move. Commissioner Regalado: Second. Vice Chairman Sanchez: It's time to fish or cut bait. Commissioner Regalado: I second. Commissioner Spence -Jones: OK. City ofMiami Page 68 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: All right. We have a -- Commissioner Spence -Jones: Taking it out of Capital Improvements, you're saying? Mr. Boudreaux: Taking it out of nondepartmental. Commissioner Sarnoff Nondepartmental. Commissioner Spence -Jones: Oh, OK. Chairman Gonzalez: Nondepartmental. Commissioner Spence -Jones: Just want to make sure. Chairman Gonzalez: Roll call, please. Ms. Thompson: Roll call. Commissioner Sarnoff? Commissioner Sarnoff I'm going to vote no because I'm going to ask that that come out of the reserve. Vice Chairman Sanchez: Reserve? Mr. Boudreaux: Well, reserves are in a nondepartmental section, Commissioner. Commissioner Sarnoff They're in a non -depart -- oh. Then I'll vote yes. Ms. Thompson: Commissioner Spence -Jones? Commissioner Spence -Jones: Yes. Ms. Thompson: Commissioner Regalado? Commissioner Regalado: Yes. Ms. Thompson: Vice Chairman Sanchez? Vice Chairman Sanchez: Yes, ma'am. Ms. Thompson: Then Chairman Gonzalez? Chairman Gonzalez: Yes, ma'am. Ms. Thompson: That is a 5/0 vote on that approval. Vice Chairman Sanchez: All right. Couldl also be identified to go through the budget, Mr. Chair? Chairman Gonzalez: Yes. Vice Chairman Sanchez: All right. The -- going through the FY-08 proposed budget, the Commission has agreed -- each Commissioner, to give up 50,000, a total of a quarter of a million dollar. That has been through the -- worked out through the Mayor and the City Manager. The Office of the Auditor General, what's the final reduction on that? City ofMiami Page 69 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Boudreaux: Give me one second, please. The auditor general's office reduced $60, 075. Vice Chairman Sanchez: So he finally agreed to the 60,000, because all he wanted to give was 10,000? Mr. Boudreaux: The first reduction was $10, 075. We've -- with an additional reduction of 50,000 to make it $60, 075. Vice Chairman Sanchez: All right. Let's move along to Civilian Investigative Panel. These are the outside agencies, and let me tell you. It's nothing personal. It's certainly brings a tear to my eye to cut the budget, but we have to by the state of Florida, and therefore, I would request -- Chairman Gonzalez: What page are we in? Mr. Boudreaux: I'm reading from the summary report that I provided you in the one -for -one discussions. Chairman Gonzalez: I don't have a summary report with me. Mr. Boudreaux: OK. Chairman Gonzalez: Can you give me a page in your book? Mr. Boudreaux: You can look at -- Vice Chairman Sanchez: And while you're doing that, let me just focus on the outside agencies because that's going to be an issue that we're going to be addressing. Mr. Boudreaux: It starts on page 91 -- Commissioner Sarnoff 91. Mr. Boudreaux: -- of the proposed book. Chairman Gonzalez: All right. Got it. Thank you. Vice Chairman Sanchez: Mr. Budget Director, Bayfront Park, who is here today -- andl happen to be the chair of Bayfront Park when -- this all came about that it was going to be a very tough year, and we needed to tighten our belts, the Trust executive director and the board itself agreed to lead as an example, and it shows that Bayfront Park reduced the budget by half a million dollars, close to about 50 percent, all right, and therefore, what I wanted to show is that if Bayfront Park could do it, other agencies could do it, and through this whole process, which I think it was a good process where we had an opportunity to sit with the Administration and the Mayor, and of course, this is the only opportunity we have to sit with the Commissioners to discuss in a healthy debate the budget, we looked at a lot of the agencies to see how much they could cut. Now, I made it a policy to sit down with them because I didn't want to cut off the hip. I wanted to sit down with them to see how much they were willing to give, how many they were willing to cut, so I didn't cut services, or I didn't cut them to a point where they were funded to fail, and Civilian Investigative Panel was one that offered only a hundred thousand, and we suggested that they go another hundred thousand dollars. Has that been done? Mr. Boudreaux: Well, counting right now, we show the contributions to the Civilian Investigative Panel at a reduction of $210, 000. City ofMiami Page 70 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: That's even better. That's even better, and you know what, I thank the chair of the Civilian Investigative Panel for their professionalism of meeting with me in the office and discussing the reductions. Yes. Please. Brenda Shapiro: Mr. Chairman, I'm surprised to hear Mr. Boudreaux announce the number because when I was here just a few moments ago or hours ago -- I've lost track of time -- I said have an emergency meeting with the panel to discuss our revised budget. Our revised budget that should be before you represents a hundred thousand dollar cut. We were asked to do a $200, 000, but that would involve removing staff positions. That would involve far more than we were prepared to do, and my panel has charged me with the responsibility of coming before you and saying yes, in addition to the original $10, 000 we cut, we did cut a hundred thousand additional dollars, but we didn't cut $200, 000, and I just wanted to represent that to you. I don't want you to be misled, and if you're going to have a public hearing about this, then I'll address it later and tell you why we can't reduce more, and why we believe we can't reduce more than the hundred thousand that we took. Vice Chairman Sanchez: I'm going to allow that courtesy, so we'll -- Ms. Shapiro: Thankyou. Vice Chairman Sanchez: -- get back to you later on. Ms. Shapiro: Thankyou, Mr. Chairman. Vice Chairman Sanchez: Thank you. Commissioner Spence -Jones: Mr. Chairman -- you got another item? Vice Chairman Sanchez: Yeah, I got -- Commissioner Spence -Jones: OK. Vice Chairman Sanchez: -- a long -- the Liberty City Trust Fund, what did they finally agree to? Mr. Boudreaux: Liberty City Trust total reductions was 144, 650. Commissioner Sarnoff What's their budget? Mr. Boudreaux: Their budget now is about -- Vice Chairman Sanchez: Five fifty. Mr. Boudreaux: -- the contribution that the general fund will provide it for next year is $550, 000. Vice Chairman Sanchez: All right. Moving right along. Virginia Key Beach Trust, I'll allow them the same courtesy. Since this is a public hearing, I would like for you, during the public hearing, to come up and say why you can or you can't reduce your budget. Any further -- but we'll do that -- you want to do it now? Commissioner Sarnoff Let's do it. Vice Chairman Sanchez: All right. You're recognized for the record. Gene Tinnie: Thankyou. My name is Gene Tinnie. I reside at 74 Northwest 51st Street, andl City ofMiami Page 71 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 have the privilege of serving as chair of the Virginia Key Beach Park Trust, and several of our -- my fellow trustees and staff members are here. I should clam, and you will all have gotten a note by fax yesterday, and also I hand -delivered it, that the original budget request that's represented on the agenda of one million eight -- andl need my glasses for the rest of the digits - - we did, at the request and upon the advice of the City Manager's office, reduce that to one million five -- Vice Chairman Sanchez: One point three. I'm sorry. Mr. Tinnie: We reduced it by 300, 000. Vice Chairman Sanchez: Three hundred and sixty -- Mr. Tinnie: -- to one million -- Vice Chairman Sanchez: -- 364, 000. Mr. Tinnie: -- five sixteen, one fifty-six. Vice Chairman Sanchez: Is it 364,000? Mr. Tinnie: We reduce it by 300, 000 from -- what is -- on your agenda, it says one point -- one million eight hundred and sixteen thousand, one hundred and fifty-six thousand. Vice Chairman Sanchez: That's not the numbers that I have, sir. Maybe the numbers -- Chairman Gonzalez: That's not the numbers that I have. Vice Chairman Sanchez: The numbers that have here is your adopted FY-207 [sic] was 1.6. Commissioner Sarnoff One point seven. Chairman Gonzalez: One point six hundred and -- Mr. Tinnie: For -- Chairman Gonzalez: -- eighty thousand. Vice Chairman Sanchez: Yeah -- Mr. Tinnie: -- 207 [sic]. Vice Chairman Sanchez: -- and 208 [sic], your proposed budget was 1, 316, 355, and my understanding, based on this, you have agreed to a reduction of $364, 800. Commissioner Spence -Jones: Actually, it went down lower than that. Vice Chairman Sanchez: Huh? Commissioner Spence -Jones: I think it went lower. Vice Chairman Sanchez: Well, we'll -- Chairman Gonzalez: Well -- City ofMiami Page 72 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Spence -Jones: What is the number, Mike? Mr. Boudreaux: The original request that was submitted by the Virginia Key Beach Trust was 1,816,156. Commissioner Spence -Jones: Right. Mr. Boudreaux: We originally did a reduction of 300,000 to 1,516,156, and then we asked a subsequent $200,000 reduction to take it to 1,316,156. Commissioner Sarnoff Right. Commissioner Spence -Jones: So it's 1.3? Mr. Boudreaux: It's 1.3. Vice Chairman Sanchez: What's the reduction? Mr. Boudreaux: The total requested reduction is $500, 000. Vice Chairman Sanchez: All right. Commissioner Sarnoff But their reduction from '07 is a three hundred plus thousand? Commissioner Spence -Jones: Yeah. Mr. Boudreaux: Yes. We're doing it -- a comparison based on what they had originally requested, and we reduced the amount that they originally requested, and you will see on the summary sheet that I gave you in the one -for -one meeting the comparison to what we gave them in fiscal year '07 is a $364, 800 decrease in total based on what we provided them in fiscal year '07. Mr. Tinnie: OK. We're on slightly different pages here. What we have -- I might add that I'm speaking not only as chair of the Trust, but as a taxpayer and a resident, so I mean, you know, the City's crisis is all of our crisis, so we're not simply politicking for a cause unrealistically. In our discussions, we had -- OK. Our original budget request, as Mr. Boudreaux just said, was 1, 816,156. Our initial discussions with the City Manager's office was to reduce the amount of that request by 300, 000, which I have to say our staff did more than a yeoman's job to figure out a way to do that, and just to -- if you'll permit, put me an aside, you'll notice that in the Mayor's presentation and on page one, I think that introduction concludes with the fact that there are new facilities opening at parks, and not to be lost in the mix is that here's a park that has been closed for 25 years that is opening on February 1 to go into full operation, so we want to make sure that we make the right decision. I think the very last thing that I heard on the radio, as I pulled up here, in the hearings about Iraq, was that insecure people don't make smart decisions. We don't want to be in that situation. I don't know. Mr. Shorter, you might want to -- Commissioner Spence -Jones: David, I know -- Mr. Tinnie: -- address this. Commissioner Spence -Jones: -- we've met on this issue, David, because you know, I've always had concerns with the issues of what we need to do to make sure that the Trust and whatever you're going to create there is going to be there forever, and you know -- and I've explained this over and over again to the City Manager, how important it is to make sure, as EDS -- I guess that's the name of the consultants -- are working to look at the whole Key, that they need to City ofMiami Page 73 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 consider what needs to happen with Virginia Key Beach, the Trust, to make sure it's able to sustain itself, so you know, I've had concerns with the budget and a whole bunch of -- and I'm glad that you were able to make the reduction. Now, we just had a meeting with the Manager the day before yesterday, andl believe that what was communicated was that that reduction or the additional reduction was going to be considered and that you would get back with them to let them know that it would go down to the 1.3. Was that -- did that ever happen? David Shorter: No, ma'am, that did not happen. Commissioner Spence -Jones: OK, so you guys are at what number now? Mr. Shorter: We're at 1.5 -- 1,516,156. The original 300,000 we were asked to reduce our budget, we did that. Commissioner Spence -Jones: Mr. Manager, because I asked you about this earlier, and you said that -- Mr. Hernandez: Our position -- Commissioner Sarnoff Well -- Mr. Hernandez: -- is that -- Commissioner. Commissioner Sarnoff No. I -- you guys met with me, andl -- Mr. Tinnie: Right. Commissioner Sarnoff -- was very clear that we were looking for about a 19 percent reduction. I thought was perfectly clear, andl know you guys didn't want to hear it. Nobody -- as a matter of fact, I want to thank the City Manager for me advising every board that came into my office how deep the cuts needed to be made, and when they all looked at me like I had three heads on my shoulders, that I was this guy that just wanted to cut everybody's budget, welcome to hell because here you are. Vice Chairman Sanchez: Hey, you need to learn that, you know, every now and then you got to feel like the skunk at the family picnic. Commissioner Sarnoff That's OK. I just -- I wanted you to know that whatl was saying to you is accurate. Whatl was saying to you -- I guess some people in this Administration don't want to be the bearer of bad news, and you didn't hear it first today. You heard it from me at the meeting, and everybody that came in my office said there's no way, and my final answer to them was just hand me the keys to your department because apparently, you can't make the cuts; we don't have your department. All due respect, Mr. Manager, I would never say that to them in actuality, but was being figurative. Mr. Hernandez: Commissioner, we ask -- they went down the initial 300. We met. We asked for an additional 200, 000, which would bring them down to 1, 316, 000, keeping in mind that they also have an additional 800,000 as carryover from the prior year, and we felt that that was sufficient to get them through the next year. Commissioner Sarnoff Right, to carry forward Commissioner Spence -Jones: Andl also want to be clear with David, too, because one of the discussions we talked about. The only reason -- because I don't -- their concern was they didn't want to take this reduction or deep -- reduction like this and be stuck in a situation where it's City ofMiami Page 74 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 really time for them to deliver on, you know, the building itself and not have the people in place because the money's not there, and it was assured to me in the meeting with the City Manager andl believe with Larry, too, at that particular time, that they could do the cut for now because it -- before -- in a certain period of time -- it's going to take time to get to that place in their budget for them to hire those individuals, so I just want to make sure -- andl want to make sure that the Key and -- the Trust understands -- again, no disrespect to the Trust. I understand how important you are to our community, to the constituents that I represent, andl understand the value that it brings to the City ofMiami, and it needs to be appreciated in value. I think the issue, though, at this point -- and what we're seeing happening now is everybody's trying to cut everywhere. We just cut a whole department out. You saw that happen right before your eyes -- Vice Chairman Sanchez: Totally. Commissioner Spence -Jones: -- so all wanted to be able to say, the only reason why I would even feel confident in this matter is because, in talking to Larry, and talking to the Manager, it was communicated that because these positions would not come on line until later, that the Trust could stand. Because they do have $800, 000 currently that's rolling over, they could afford to do this for now -- Mr. Hernandez: Right. That's right. Commissioner Spence -Jones: -- but understanding David's issue, which was he doesn't want to be in a situation where next year comes and be -- and the Commission then turns around and says, well, we gave you 1.3. We want you to make another $200,000 cut, and quite frankly, you would not be able to do that, and that's what you communicated, because by that time, you would have these positions in place, the building would be getting built, and you'd have to have the people there to run that portion of the program, so that was the only reason why we agreed to the reduction in that meeting. Now -- Mr. Shorter: Correct. Commissioner Spence -Jones: -- David was very clear that he would call the Manager back to let him know, and apparently, that did not happen. Mr. Tinnie: And -- Commissioner Spence -Jones: Mr. -- Mr. Tinnie: -- before Mr. Germain and some of the others address this, I just want to underscore we are very, very much understanding of what the needs of the City are. We're not trying to be realistic or -- be unrealistic, so -- I mean, we are looking to make our fair contribution. Our main concern, of course, is that the budget representing is not just an operating budget, but it is an investment, a capital investment of the future of the City, and we want to make sure that we don't essentially shoot ourselves in the foot, but I know some of the -- some of my colleagues want to just make some other points. Miguel Germain: Dear Commissioners, the previous cut two or three years ago, it was 35 percent that we took the cut, even the Chairman -- today's Chairman, Angel Gonzalez, said wow. We are constantly being cut more than the others, and that is not fair. We are run by citizen, and we spend only the money that we are able to spend. We don't throw the money around and ask more money. That's why the reason that every year we have "X" amount of money left that we ask for that. We are not overspending. We keep a very tight budget. [Later...] City ofMiami Page 75 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: I just have some questions -- Chairman Gonzalez: Let's go back. Vice Chairman Sanchez: -- pertaining to the budget, which are very important, I think. Are the spendings consistent with the goals and objective of the City pertaining to this FY-08 budget, andl want to hear from the City Manager. Mr. Hernandez: Yes, they are. Vice Chairman Sanchez: They are. Mr. Hernandez: Definitely. Vice Chairman Sanchez: All right. One of the concerns that we always have is what's -- what are the unfunded liabilities if we approve this budget in what are we looking at in numbers on the unfunded liabilities? Mr. Spring: Can I -- can you --? Larry Spring. Vice Chairman Sanchez: Unfunded liabilities. You got to have that number. Mr. Spring: When you say unfunded liabilities, we have OPEB (Other Post -Employment Benefits) that we're dealing with. That number is probably going to be in the 75 to $100 million Vice Chairman Sanchez: Let's say the stock market crashes -- Mr. Spring: -- unfunded liabilities. Vice Chairman Sanchez: -- tomorrow. That's an unfunded liability. Mr. Spring: That is an -- Vice Chairman Sanchez: Where are we at? Mr. Spring: -- unfunded liability. Vice Chairman Sanchez: Where are we at? Mr. Spring: Like I just said, between 75 and $100 million. We're getting an actuary to calculate that figure. Vice Chairman Sanchez: I think that's -- I think -- Mr. Spring: That's -- Vice Chairman Sanchez: -- we need to know that. Mr. Spring: -- and that's -- Vice Chairman Sanchez: Let's say tomorrow, the world comes to an end. Mr. Spring: -- and that would be -- City ofMiami Page 76 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: We don't have to worry about it. Commissioner Sarnoff Then we won't need money. Vice Chairman Sanchez: Yeah. Mr. Spring: Right. Chairman Gonzalez: If the world comes -- Vice Chairman Sanchez: We don't need to worry about it. Chairman Gonzalez: -- to an end, we don't have to worry about anything. Vice Chairman Sanchez: So you're talking what, 75 --? Mr. Spring: That's -- the OPEB is simply the post -retirement health benefits. In addition to that, you would have all of the compensated absences, you know, vacation time, sick time, that is due to our employees, and ifI can get my Finance director out here, I think she has that number, that figure as well, and we'll put it on the record for you. It's in the CAFR (Comprehensive Annual Financial Report) report. Vice Chairman Sanchez: Well, there's -- I have other questions that are -- that was very important. I need to know exactly what is our unfunded liabilities -- Mr. Spring: She's coming right now. Vice Chairman Sanchez: -- for the City ofMiami. Chairman Gonzalez: All right. Next. Vice Chairman Sanchez: No. Chairman Gonzalez: Huh? Vice Chairman Sanchez: He hasn't answered. Commissioner Spence -Jones: Is that your last point, though? Vice Chairman Sanchez: No. I have some other issues. Chairman Gonzalez: Why don't we bring the Investigative Panel --? Commissioner Spence -Jones: Mr. Chairman, I do have some that do -- Vice Chairman Sanchez: You really want the fireworks to go? Chairman Gonzalez: Hey, listen, like Commissioner Sarnoff said, you know -- Vice Chairman Sanchez: And, Marc, I never knew you -- Chairman Gonzalez: -- let's stop kidding each other. Vice Chairman Sanchez: -- could get mad. City ofMiami Page 77 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff Well, I mean -- Chairman Gonzalez: It's going to get worse. Commissioner Sarnoff -- what are we doing here? Mr. Spring: OK. Your -- Commissioner Sarnoff Why are we -- Chairman Gonzalez: It's going to get worse. Commissioner Sarnoff -- kidding -- Vice Chairman Sanchez: Whoa, whoa, whoa, whoa. Commissioner Sarnoff -- people? Vice Chairman Sanchez: Whoa. Chairman Gonzalez: You know, we constantly are out there telling people we want to cut taxes, we can't to cut taxes; we want to do this for you; we want to do that for you. Well, this is the time to do it. Vice Chairman Sanchez: Well, we're doing it. Apparently -- Chairman Gonzalez: Right, but -- Vice Chairman Sanchez: -- we're doing it. Commissioner Sarnoff You said it best, Mr. Chairman. I mean, this is the -- you're ignored until this day. Chairman Gonzalez: Yeah. Commissioner Sarnoff You're ignored until you have to approve a budget, and you know what? The most important job we have is the budget, because you can have any ear candy you want, but if you're not going to pay for it -- it's like no child left behind. Chairman Gonzalez: No child left -- Commissioner Sarnoff That's ear candy, but nobody's ever funded that. Chairman Gonzalez: That's right. Mr. Spring: OK. I just gave you the estimated for OPEB. The additional number out there compensated absences is approximately 70 million -- 70.5 million on top of that number is unfunded. Vice Chairman Sanchez: Butl don't understand. On top of what? Mr. Spring: Of the -- the pre -- I gave you a number for -- Commissioner Sarnoff Of the 79 -- City ofMiami Page 78 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Spring: -- post -retirement benefit, which is -- Vice Chairman Sanchez: Right. Mr. Spring: -- somewhere between 75 million and -- Chairman Gonzalez: So we're talking about -- Mr. Spring: -- a hundred million -- Chairman Gonzalez: -- $150 million altogether. Mr. Spring: -- and then another 70 million -- Commissioner Sarnoff Hundred and forty-nine. Mr. Spring: -- for compensated absences. Chairman Gonzalez: Close to a hundred and fifty million altogether. Mr. Spring: Hundred and seventy. Vice Chairman Sanchez: OK, and that's, of course, more than our reserve, so that's -- Mr. Spring: Correct. Vice Chairman Sanchez: All right, so -- OK. How 'bout the general long-term obligations for the City? Mr. Spring: General long -- well, all of -- our liabilities total, including short-term and long-term, is $677 million. Chairman Gonzalez: There goes the City. Mr. Spring: That number -- Vice Chairman Sanchez: Six hundred and seven -- Mr. Spring: That's governmental wide. That number includes accounts payables and accrued liabilities, you know, due to governments unearned revenue. You know, it's not a -- it's a financial statement number, but it's not -- Chairman Gonzalez: Oh, God. Mr. Spring: -- but those are all our liabilities that we have due. Commissioner Sarnoff We have about $800 million -- Mr. Spring: Yeah. Commissioner Sarnoff -- in liability. Chairman Gonzalez: Yeah. Commissioner Sarnoff But it's -- City ofMiami Page 79 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: I think) need to know that. I think we all -- Commissioner Sarnoff Well, I -- Vice Chairman Sanchez: -- need to know -- Mr. Spring: You know -- no. Vice Chairman Sanchez: -- where our liability is in the City. Mr. Spring: But we -- you said unfunded. I've answered your question, so -- Vice Chairman Sanchez: OK. I yield. Commissioner Spence -Jones: OK. Commissioner Sarnoff I -- Commissioner Spence -Jones: You finished now? Commissioner Sarnoff -- not saying) knew it, but it's $800 million or plus of a liability that, I guess, if we stopped taking taxes then we'd be in big trouble. Chairman Gonzalez: All right. Commissioner Spence -Jones: Are you finished, Commissioner Sanchez? Chairman Gonzalez: You're done? Vice Chairman Sanchez: Done for now, yeah. Commissioner Spence -Jones: OK. I just -- thank you, Mr. Chairman -- had some small questions on the budget. Most of it was answered. A lot of these things were answered in my briefings with the City Manager and staff but the NDA (Nondepartmental Account) accounts were something) had a lot of questions on, and) did get some clear answers on them, but I need to understand -- the Bayfront Land Trust, I think was almost $700, 000 that was actually in the Bayfront Land Trust. Were you able to find out at all or get any information regarding what those dollars were to be utilized for? Green space -- I mean, could they --? Can --? 'Cause apparently, we've been putting money into this thing, and) -- do we know yet? Laura Billberry (Director): That -- Lori Billberry, Public Facilities. I don't have the exact amount -- Commissioner Spence -Jones: I think it's -- Ms. Billberry: -- with me. Commissioner Spence -Jones: -- 625, 000. Ms. Billberry: I thought it was more, around a million -- a little more than a million. Commissioner Spence -Jones: OK. Well, all right. Ms. Billberry: As part of the Bayside lease, when the City entered into the lease with Bayside, City ofMiami Page 80 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 we received a waiver of deed restriction from the State, and it required the City to set aside seven and a half percent of our rental revenues from Bayside into that account. Commissioner Spence -Jones: For the Bayside -- Bayfront -- to the Bayfront Land Trust? Ms. Billberry: Right. Commissioner Spence -Jones: What are those -- my question is what are those dollars to be used for? Ms. Billberry: They're to be used to acquire waterfront land either on the Miami River or on Biscayne Bay. Commissioner Spence -Jones: OK. Have we used any of those dollars --? Ms. Billberry: No. Commissioner Spence -Jones: Is it only for land acquisition? Could it also be to improve the existing waterfront property or green space that we have? Like if -- for instance, the Seybold Canal, I'm going to use that for example, where we just put Seybold Park where we were underfunded. Could it be used for something like that because we're searching for monies to do that? Ms. Billberry: The way it is worded currently, the answer is no, because we did actually inquire ofDEP (Department of Environmental Protection), who is responsible for administering the state lands, about doing some improvements to some property on Biscayne Bay that we were trying to acquire from the County -- Commissioner Spence -Jones: Right. Ms. Billberry: -- and they declined our request. Commissioner Spence -Jones: OK. Ms. Billberry: It is my opinion we would have to go back to the trustees or the cabinet in order to modify the waiver to do that -- something like that. Commissioner Spence -Jones: OK, so right now, the money's just sitting there and growing and, you know, if we have no way to use it, it's just going to be money that's not being used? Ms. Billberry: Right. Commissioner Spence -Jones: That's not good. All right. Then the other question I had was in off-street -- thank you, Lori. The other question had was the Off -Street Parking. Apparently, we pay into this off-street parking issue, andl was asking -- and that amount is also growing. I'm like what is -- Commissioner Sarnoff Going down. Mr. Boudreaux: The only thing -- Commissioner Spence -Jones: No. Actually, the number is growing because I -- Mr. Boudreaux: -- that we -- the only -- we have two components of Off -Street Parking: Contributions that the City receive from Off -Street Parking and then amount that the City pays City ofMiami Page 81 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 for the Gusman Olympia -- Commissioner Spence -Jones: I'm talking about the saves -- the amount -- Mr. Boudreaux: Excuse me? Commissioner Spence -Jones: -- that the City pays into it. Mr. Boudreaux: The only contribution that the general fund makes to Off -Street Parking is what has been agreed upon in its interlocal, and that is two components. One is the contribution for the Gusman Olympia -- Vice Chairman Sanchez: That's interlocal agreements. Commissioner Spence -Jones: Yeah. Mr. Hernandez: In Coconut Grove? Commissioner Spence -Jones: No, no, I'm not talking the trust fund in Coconut Grove. When Mike sat down and brief me -- andl can't find the place in partic -- and I'll wait until September 26 if you don't have it right now in front of you, but I asked a question. Does this mean that if -- because we pay into this -- what do we get for what -- for us paying into this particular trust fund? Mr. Boudreaux: The -- Commissioner Spence -Jones: And you didn't have an answer, so how --? Mr. Boudreaux: -- Department of Off -Street Parking provides the City a contribution every year. This year it's estimated at $1 million. Commissioner Sarnoff Diminishing. Mr. Boudreaux: For next fiscal year, it's estimated at a million dollars. We also provided a contribution in support of Gusman Olympia as a part of an interlocal agreement. Next year it's going to be 381,000 that we will be providing, OK? So those are the two components related to Off -Street Parking. Commissioner Sarnoff Well, their -- your contribution went down $900, 000, right? Commissioner Spence -Jones: No. I'm not talking about that. Commissioner Sarnoff No? Commissioner Spence -Jones: I wasn't talking about that. It was another item that I saw was an NDA account that we have regarding it. Mr. Boudreaux: That is where I'm referencing my information from, the NDA account. Commissioner Spence -Jones: Yes, which has nothing to do with what Commissioner Sarnoff is talking about. Mr. Boudreaux: Well, we have to understand that there are two different components that we're speaking of. We're talking about one side as being contributions from the Off -Street Parking, which goes through the general fund revenues, and then the other part deals with expenditures City ofMiami Page 82 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 where we pay for Gusman Olympia of 381, 000. Commissioner Spence -Jones: OK, and then my last question was -- and this is to close out on my issue and concerns. One of the things that I know that I -- in my briefings with the City Manager that had a huge, big concern, andl all of us should have the same, is the huge reduction that we were seeing in CIP (Capital Improvements Program). To me, this translates to the lack of people to ensure that the CIP projects actually get completed, and we all know our second series of -- through the second series of the bond, we are going to be expecting, at the end of the day, and our constituents are going to be expecting that these projects get completed. Now, I do understand we went from 19 employees to 11 employees, and -- I mean, it's changed -- I'm just concerned that our CIP director, that is now being charged, Mr. Ola Aluko, is -- with completing these projects and working along with our consultants to do this, which, by the way, in the next six months, we still have to look at whether or not we were going to even keep those consultants, HDRs (Henningson, Durham, and Richardson) -- HDR on board. I just don't want us to be in a position where we have projects that need to be completed and done and then we turn around and because we've underfunded this department for whatever reason, our parks, our streets, our things are not happening because we made it impossible for him to do or that department to do what they need to do. Now, I was -- it was communicated to me by the City Manager that he has committed to provide the unfunded positions to make sure that these projects get completed. I just want to make sure that we put it on the record because if not, we're going to be setting up another director to -- for them same comments to come back a year later. You were in that position for a year. What did you do? Did you complete -- did you deliver the jobs? Did you do the things that you say you were going to do? And they're going to say no, and then all the other information that goes along with why they were not able to deliver it is going to be thrown out the window, i.e., him not having the staffing that's necessary in order to complete the job, so I just want to make sure that we put -- I don't want to set Ola -- Mr. Aluko up for him to be coming back in front of us and us to be sitting up here on the dais, higher than mighty saying you didn't do your job; it's time for you to go, and once again, I only have five, now four African Americans in leadership positions if the City ofMiami; now going down to number three, so I need for my City Manager -- Mr. City Manager to assure me that Mr. Aluko's going to have what it takes or what's necessary for all of our projects to get completed because we're not going to rely just on HDR to do what they need to do because we've seen how that happened, so I just want to be assured that that's going to happen from that perspective. Mr. Hernandez: Commissioner, CIP will have the necessary personnel to move forward and advance every project that they have. They receive a certain amount of money from the general fund as a subsidy. However, with tasks like either design or construction management, those activities get charged directly to the project, and besides the positions that he's got that are funded by the general fund, there are many positions that he can fill that are based on the need from the specific project and can be charged to those specific projects, so there is no concern as to not being able to enough people to handle the projects. Commissioner Spence -Jones: And you're officially putting that on the record? Mr. Hernandez: Yes. Commissioner Spence -Jones: And Mr. CIP Director, you feel very confident that you will be able to do this with outside -- I just want to be clear because all of us are going to complain when our streets aren't getting done and everything else is not happening. We're going to complain, and guess what? He's going to be the fall guy, and I'll be up here trying to defend him in his position. Chairman Gonzalez: All right. Where are we at? Commissioner Spence -Jones: I just need to get a response from Mr. Ola Aluko, please, Mr. City ofMiami Page 83 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman -- Ola Aluko (Director, Capital Improvements Program): Ola Aluko. Commissioner Spence -Jones: -- then we can move on. Mr. Aluko: Ola Aluko, director of CIP, City of Miami. Just as the Manager stated, Ms. Commissioner, CIP has been allocated enough unfunded positions to where we can build against the particular projects. Each construction manager or any entity that works on a particular project can bill a certain percentage on that particular project. Should we have any issues, obviously, we'll bring it to the management's attention and we'll try to recti it at the same time. Commissioner Spence -Jones: Thankyou, Mr. Aluko. Thankyou, Mr. Chairman, for indulging me. [Later..] Commissioner Regalado: Mr. Chairman, I -- Chairman Gonzalez: Yes, sir. Commissioner Regalado: -- have just a question or -- Chairman Gonzalez: Go ahead. Commissioner Regalado: -- to the Manager. It seems that we decide to cancel or -- all the questions on the budget, but I do have some question for the Manager. Maybe he can at least send me or us the information. On the Communications Department, I would like to know what have been the changes of personnel and expenses in the last three years? Why the budget has gone out of whack in the last three years? I want to try to understand. On the green office, plus the Grants office, it's the same director, right. Robert is the same director of both offices. Mr. Hernandez: Yes. Commissioner Regalado: Why there is two different offices and two different budgets, if both office are alike? Robert Ruano (Director, Grants Administration): OK. Commissioner Regalado: I just want to understand. Mr. Ruano: I'm sorry. Your question? Commissioner Regalado: Question -- the question is if the mission of the two office -- 'cause I saw you nod -- are totally different, how can you do two different -- two totally different jobs? Mr. Ruano: Robert Ruano, director of Grants and Sustainable Initiatives. Actually, it's actually a cost saving measure. We have one director, two departments; I have two senior level managers in each department. We realized when we started this department several months ago, and you all voted on it, to -- in order to save dollars instead of getting another director, I took on both roles. Commissioner Regalado: But -- I mean, can you handle it or --? Mr. Ruano: Yes. City ofMiami Page 84 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: Can you do three? No. I mean -- because you just said that the scope is totally different -- Mr. Ruano: Yes. Commissioner Regalado: -- and this is a cost reduction, so it's not what the Manager said about efficiency. Well -- Mr. Ruano: I think there is an efficiency there. Commissioner Regalado: OK. Mr. Ruano: Sure. Commissioner Regalado: So you're contradicting yourself now, Mr. Manager. You said that it's not about -- it's about efficiency. It's about -- it's not about saving. Mr. Hernandez: What I said was that don't support arbitrary cutting just for reduction of dollars, but rather to do it for efficiency reasons. This is an example of efficiency. Commissioner Regalado: OK, so it's an example of efficiency. There's nothing else to cut there. Nothing else to merger [sic]. Nothing else to -- Mr. Hernandez: No. Commissioner Regalado: -- do. That's it. In Communications, there's nothing else to do. Mr. Hernandez: Communications, it's a self -standing department. I will be more than glad to get the information that you ask for for their budget, their increase, the reasons -- their programs. I had already asked Kelly Penton to get me a listing of all their programming, all the boards that are televised and -- Commissioner Regalado: No, no, but what is your opinion? If we were to cut -- Mr. Hernandez: On Communications? Commissioner Regalado: -- can we cut $10, 000, $20, 000? Mr. Hernandez: From Communications? Commissioner Regalado: Yeah. Mr. Hernandez: In essence, I was looking for monies to add to it because I feel they need to do maybe -- or have a better opportunity to do translations in Spanish and Creole, and right now they're sort of handicap in that service. Commissioner Regalado: So we need more money for Communications? Mr. Hernandez: I wish that we were able to do it. That's one of the cuts that we have in place right now, that she's not able to provide I believe that level of service that I believe is needed. Commissioner Regalado: Well, I still don't know what the department does. Maybe Kelly can explain, but maybe it's too long, so I don't know. City ofMiami Page 85 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Kelly Penton: And Commissioner -- Kelly Penton, director of Communications. We have gone through the gestures with our Budget Department of making several cuts in our operations budget, so we -- as every other department has done -- Commissioner Regalado: Did it go up -- Ms. Penton: -- have gone -- Commissioner Regalado: -- or down? Ms. Penton: -- through that -- those gestures. Mr. Boudreaux: The department itself did give up a hundred thousand, eight sixty in its budget for next year. Commissioner Regalado: OK, but I'm talking about the next -- the last three years. That's why I wanted -- Mr. Boudreaux: Last three years -- Commissioner Regalado: Last four years. Ms. Penton: And Commissioner, I can work with Budget to get you that information, as requested. Commissioner Regalado: OK. Mr. Boudreaux: Give me a second, Commissioner. I have the information in front of me. Communications was provided an allocation -- how many years back you want to go? Commissioner Regalado: Four. Chairman Gonzalez: Three. Mr. Boudreaux: To 2000 and -- I have information back to 2003. Commissioner Regalado: OK. Mr. Boudreaux: Is that OK? The allocations provided to this department was 821,688 in '03; a final allocation of 880,896 in '04; an allocation of 896, 000 in '05; it went to 949,133 in '06; the adopted budget was approved for '07 at 1, 318, 842; and the proposed for next year is 1, 381, 366. Commissioner Regalado: So a jump of 400, 000, more or less, right, the last four year? OK. We'll continue. I mean, you're going to do whatever you want, and so I can continue. I just wanted to understand what are we getting for the money. That's all. Mr. Hernandez: Commissioner, you understand there were a couple ofjumps there that he mentioned, and in the information that I plan to give back to you, I would like to show actually what happened in those years, what's the reason for the increase. Commissioner Regalado: OK. Mr. Hernandez: I'll provide that information to you and the other Commissioners. Chairman Gonzalez: Any other questions? No? City ofMiami Page 86 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: No. BH.4 07-00724 DISCUSSION ITEM Department of A DISCUSSION OF THE MIAMI CITY COMMISSION CONCERNING A Finance FINANCIAL UPDATE AND BUDGET OUTLOOK. 07-00724 Summary Form.pdf DEFERRED A motion was made by Commissioner Spence -Jones, seconded by Commissioner Sarnoff, and was passed unanimously, to defer Item BH.4 to the City Commission meeting currently scheduled for September 27, 2007. Commissioner Sarnoff Maybe we could just -- Chairman Gonzalez: What item are we -- Commissioner Sarnoff -- some people are waiting. Why don't we either do CIP (Capital Improvement Program)? They've been waiting. Then we could do DDA (Downtown Development Authority); they've been waiting. Chairman Gonzalez: Yeah. Vice Chairman Sanchez: All right. Well -- Chairman Gonzalez: OK. You want to do that, go ahead. Vice Chairman Sanchez: -- (UNINTELLIGIBLE) the budget (UNINTET,TIGIBT,F). Commissioner Sarnoff Or we go through the budget; whatever you want. I like the way you were doing it. Vice Chairman Sanchez: I'm not the Chair; I'm the Vice Chair. The Chair runs the meeting. Chairman Gonzalez: Go ahead. Vice Chairman Sanchez: No, no. Commissioner Spence -Jones: No, no. Please. Please, Mr. Chairman. Chairman Gonzalez: You know, we need to establish an order because we're not going anywhere. Commissioner Sarnoff Right. Vice Chairman Sanchez: We don't need -- Chairman Gonzalez: All right. Commissioner Spence -Jones: We're on B -- Chairman Gonzalez: We are on BH (Budget Hearing) -- Vice Chairman Sanchez: Discussion item. City ofMiami Page 87 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: -- 3, right? Vice Chairman Sanchez: Right. Commissioner Spence -Jones: BH.4 now. Vice Chairman Sanchez: If there's no more questions as to department stuff, we're done. We could go to PH [sic] -- Commissioner Spence -Jones: BH. Vice Chairman Sanchez: -- BH.4 has been deferred. Chairman Gonzalez: OK, but did we voted on BH.3? Vice Chairman Sanchez: We don't need to vote on it. It's just discussion. Everything has been implemented. We voted on it, so it's -- Commissioner Spence -Jones: Don't we vote on this? Vice Chairman Sanchez: -- added to the budget for the final verdict. BH.5. Commissioner Regalado: I have a question on the budget. Priscilla A. Thompson (City Clerk): I'm sorry. Commissioner Spence -Jones: You do have -- Ms. Thompson: I'm sorry, andI apologize. We're just finishing up BH.3. DidI say -- hear someone say something aboutBH.4? Vice Chairman Sanchez: It's been deferred, hasn't it? Chairman Gonzalez: No, I don't think so. Ms. Thompson: Not -- Vice Chairman Sanchez: No? I was under the -- Chairman Gonzalez: Financial update on budget outlook. Vice Chairman Sanchez: I thought that's been deferred. Chairman Gonzalez: That was deferred, was it? Pardon me? Pedro G. Hernandez (City Manager): It goes to the second budget hearing right? No? Vice Chairman Sanchez: All right. The item's been deferred. Madam Clerk, do we need a motion for that? Mr. Hernandez: Mr. Chairman, this one is deferred. Chairman Gonzalez: All right. We need a motion to defer BH.4. Commissioner Spence -Jones: So move. City ofMiami Page 88 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: So move. Commissioner Sarnoff Second. Chairman Gonzalez: We have a motion, and we have a second. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Gonzalez: Motion carries. BH.5. Ms. Thompson: Thank you. BH.5 07-01095 DISCUSSION ITEM Downtown DISCUSSION OF THE PROPOSED MILLAGE RATE AND TENTATIVE Development BUDGET FOR THE DOWNTOWN DEVELOPMENT AUTHORITY. Authority PERCENTAGE INCREASE IN MILLAGE OVER ROLLED BACK RATE. RESPONSE THIRTEEN AND 73 PERCENT (13.73%) SPECIFIC PURPOSE FOR WHICH AD VALOREM TAX REVENUES ARE BEING INCREASED. RESPONSE: PURPOSE: DOWNTOWN ECONOMIC DEVELOPMENT PROGRAMS COST $ 537,988.53 100 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 TENTATIVE MILLAGE RATE 5.ADOPT THE AMENDED TENTATIVE BUDGET City ofMiami Page 89 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 07-01095 Cover Page.pdf DISCUSSED Chairman Gonzalez: All right. BH.4, right -- 5? Pedro G. Hernandez (City Manager): Five. Chairman Gonzalez: BH.5. Discussion of proposed millage rate and tentative budget for the Downtown Development Authority. Vice Chairman Sanchez: So move. Commissioner Spence -Jones: Second. Chairman Gonzalez: Move and second. Commissioner Regalado: This is a discussion item. Chairman Gonzalez: You moving and second their budget? Vice Chairman Sanchez: Yeah. Don't we have to --? Commissioner Spence -Jones: You got three things. Vice Chairman Sanchez: Larry. Jorge L. Fernandez (City Attorney): You have BH.6, which is a companion item, which is an ordinance that has to be passed on first reading because this is an entity that levies taxes and has to receive the same treatment -- Chairman Gonzalez: OK -- Mr. Fernandez: -- as the City ofMiami. Chairman Gonzalez: -- so we have a motion -- Vice Chairman Sanchez: BH.6. Chairman Gonzalez: -- and a second on BH. 5. All in favor, say "aye." Commissioner Spence -Jones: Aye. Vice Chairman Sanchez: No. BH.6. Commissioner Regalado: But we don't vote on -- Mr. Fernandez: Well, you don't vote on B -- Commissioner Regalado: It's a discussion item. Chairman Gonzalez: I'm just told yes. Commissioner Regalado: BH.5, we don't vote. City ofMiami Page 90 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Fernandez: On BH.5, what needs to happen is that the executive director -- Vice Chairman Sanchez: Director. Mr. Fernandez: -- needs to read for you the script -- Vice Chairman Sanchez: And we vote on BH.6. Mr. Fernandez: -- and the script stated there -- ifyou would, please, read the script on BH.5. Commissioner Sarnoff Don't vary now, Dana. It's got to be the script. Dana Nottingham: Good evening, Commissioners. My name is Dana -- Chairman Gonzalez: Go ahead. Mr. Nottingham: -- Nottingham, executive director of the Downtown Development Authority. This discussion item is a discussion of the proposed millage rate and tentative budget for the Downtown Development Authority. In introducing this item, I'd like to read the following into the record, ifI can? Downtown Miami is critical to the economic health of the entire city, and it's one of the City's most powerful economic engines. To maximize downtown's potential, the DDA's partnership with the City is guided by the following priorities: Build a livable community, become more business friendly and competitive, contribute to diversifying the economy and strengthen downtown's world class positioning. Today, downtown's economic engine contributes 6 -- 9 billion to the City's tax base, over 225 million in development impact fees; 74 percent of the City's jobs are located in and around downtown, and 10,000 businesses are located there. As we all know, our City's bright future is tempered by some serious challenges. Over 20,000 residential units are in the process of being sold downtown; over 3 million square feet of proposed and existing retail space will be available downtown; concerns related to safety, cleanliness, and negative perceptions are being addressed, and the impact of tax reform and the potential decrease in services is a concern to every neighbor in the City, including downtown. In recent years, the Miami DDA has been reorganizing to make more of a tangible difference in supplementing the City's service delivery lead in order to provide more improvements on the street. The proposed budget in front of you includes a mix of clean and safe projects and capital projects, as well as targeted marketing and economic programs that support business recruitment, community building, and promoting a positive image. Of these programs -- all these programs are important, especially in light of current economic challenges, as well as downtown's critical role in responding to these challenges. In order to supplement the City's lead and respond to current economic and budget realities, this agenda item is the largest budget approval -- budget approved in the history of the Downtown Development Authority. The total budget of approximately 7 million includes approximately 60 percent for special projects and services on the street. The total available for on -the -street projects is approximately 4 million, which includes 3.3 million, plus reserves for uncollected tax revenues that, if collected, would make available an additional 700, 000 for projects. The 3.3 million is funded by two sources: 1.1 million is funded by projected fiscal year '07/'08 tax revenues, and 2.1 million is funded from tax revenues previously reserved for future projects. Seventy percent of the 3.3 million in work program fund will be used for clean and safe and capital project, such as 165,000 to fund a 20-person street cleaning and landscaping team, 250, 000 for a street ambassador program to address safety concerns; 1 million for Brickell Avenue streetscape enhancements, 350, 000 for the proposed Flagler pocket park, as well as other small park opportunities, and 500,000 to support streetscape improvements to the jewelry district. The balance of work program funds will be used for economic and marketing programs to support the private sector's lead in attracting new restaurants, retail, and corporations. In the past two years, with the assistance of the DDA, in excess of 50 new businesses have been opened in the DDA district. This represents the potential for over 300 new jobs, over 40 million in sales, as City ofMiami Page 91 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 well as related investment and tax revenues. This is significant progress in creating the activity and vitality we all desire for downtown. In closing, I'd like to emphasize that this agenda item represents more than a proposed budget. As many of you have mentioned in our budget briefings, this proposal is a model and a road map that is comprehensive detail and targeted to address specific needs during challenging times. If approved, this budget and action plan will put more dollars on the streets of downtown and will make a tangible difference in making downtown more livable, making downtown more business friendly and competitive, making our economy more diverse, and strengthening downtown's world -class position. Chairman Gonzalez: All right. Vice Chairman Sanchez: There's no action on BH.5 -- Chairman Gonzalez: No action on BH.5. Vice Chairman Sanchez: -- so we go to BH.6. Chairman Gonzalez: BH.6. Ms. Thompson: I'm sorry. There's a script that -- with the millage rate and all that. Does that need to be read into the record or not? Vice Chairman Sanchez: Well -- Mr. Fernandez: The script of BH.5, if you allow me, is the percentage increase in millage over rollback rate. The response to that is 13.73 percent. The specific purpose for which ad valorem tax revenues are -- be increase are the programs that he has just explained to you. Vice Chairman Sanchez: Cost? Mr. Fernandez: The purpose -- Downtown Economic Development programs, the cost is $537, 988.53, which is a total of a hundred percent of those programs. BH.6 07-01096 ORDINANCE Second Reading Downtown AN ORDINANCE OF THE MIAMI CITY COMMISSION WITH Development ATTACHMENT(S), RELATED TO TAXATION, DEFINING AND DESIGNATING Authority THE TERRITORIAL LIMITS OF THE DOWNTOWN DEVELOPMENT DISTRICT OF THE CITY OF MIAMI, FLORIDA; FIXING THE MILLAGE AND LEVYING TAXES IN SAID DOWNTOWN DEVELOPMENT DISTRICT FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008, AT FIVE -TENTHS (.5) MILLS ON THE DOLLAR OF NONEXEMPT ASSESSED VALUE OF ALL REAL AND PERSONAL PROPERTY IN SAID DISTRICT; PROVIDING THAT SAID MILLAGE AND THE LEVYING OF TAXES WITHIN THE TERRITORIAL LIMITS OF THE CITY OF MIAMI ("CITY") AS REFLECTED IN THE CITY'S MILLAGE LEVY ORDINANCE FOR THE AFORESAID FISCAL YEAR WHICH IS 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, SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. City ofMiami Page 92 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 07-01096 Cover Memo SR/FR .pdf 07-01096 Pre -Legislation SR/FR.pdf 07-01096 Legislation SR/FR.pdf 07-01096 Boundaries Designated SR/FR.pdf Motion by Vice -Chairman Sanchez, seconded by Commissioner Sarnoff, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Sarnoff, Sanchez and Spence -Jones Absent: 1 - Commissioner Regalado Jorge L. Fernandez (City Attorney): Now, you -- Commissioner, you now take comments from the public. City Commission listens and respond to citizen comment. Once you do that, then, if there is any amendment that you like to make, you recommend that, but that doesn't take place until you get to BH.7, which is a discussion item, because you pass on it next hearing, on -- you pass that resolution not today, but next hearing. The only item that you pass would be BH.6, which would be ordinance on first reading. Chairman Gonzalez: All right. This is a public hearing. Anyone from the public that wants to speak on this item, please come forward to be recognized. Seeing none, hearing none, the public hearing is closed; comes back to the Commission. BH.6. Vice Chairman Sanchez: So move, Mr. Chair, on first reading. Chairman Gonzalez: We have a motion. Is there a second? Commissioner Sarnoff Second. Chairman Gonzalez: There is a second. It's a resolution. All in favor, say -- Mr. Fernandez: No. It's an ordinance. Vice Chairman Sanchez: No. Ordinance. Mr. Fernandez: BH.6 is an ordinance, sir. Chairman Gonzalez: I'm sorry. BH.6 is an ordinance. That's right. Vice Chairman Sanchez: It's getting late. Chairman Gonzalez: All right. The Ordinance was read by title into the public record by the City Attorney. Chairman Gonzalez: Roll call, please. Priscilla A. Thompson (City Clerk): Roll call. A roll call was taken, the result of which is stated above. Ms. Thompson: The ordinance is passed on first reading, 4/0. BH.7 07-01097 DISCUSSION ITEM Downtown A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A Development RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), Authority MAKING APPROPRIATIONS FROM THE DOWNTOWN DEVELOPMENT City ofMiami Page 93 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 DISTRICT AD 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, 2007 AND ENDING SEPTEMBER 30, 2008; AUTHORIZING THE DDA 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, 2007 AND ENDING SEPTEMBER 30, 2008 FOR THE OPERATIONS OF THE CITY. 07-01097 Cover Memo.pdf 07-01097 Certification Of Taxable Value.pdf 07-01097 Maximum Milllage Levy Calculation.pdf 07-01097 Pre-Legislation.pdf 07-01097 Pre -Legislation 2.pdf 07-01097 Legislation.pdf DISCUSSED Chairman Gonzalez: BH.7. Vice Chairman Sanchez: That's the budget. Jorge L. Fernandez (City Attorney): Now, what is expected of you is to engage in a discussion as to the budget as presented. If you want to make recommendations of changes for next Commission meeting, at which time you will be taking final action on the budget. Chairman Gonzalez: Discussion. Commissioner Sarnoff What were we doing before? Vice Chairman Sanchez: The millage. Chairman Gonzalez: I don't know. Vice Chairman Sanchez: Setting the millage. Unidentified Speaker: The millage. Commissioner Sarnoff I thought we were doing this before. Vice Chairman Sanchez: Setting the millage. Excuse me? Chairman Gonzalez: That's what I thought. Commissioner Sarnoff I mean, am I -- this is my first one, so just ask me -- answer me. What were we doing before? Commissioner Spence -Jones: Before when? Vice Chairman Sanchez: Setting the mil. Chairman Gonzalez: We were doing the millage. Unidentified Speaker: The millage. City ofMiami Page 94 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff No, no. We -- Chairman Gonzalez: Now we're doing the budget. Commissioner Sarnoff No. I thought we were doing the millage five minutes ago. When we were taking people's budgets down, was that not part ofBH.7? Vice Chairman Sanchez: No. Chairman Gonzalez: No. Commissioner Sarnoff No. Vice Chairman Sanchez: This is the DDA's (Downtown Development Authority's) budget. Chairman Gonzalez: This is DDA. Commissioner Sarnoff Oh, this is D -- I'm sorry. Vice Chairman Sanchez: Yeah. Chairman Gonzalez: Yeah. This is the DDA. Vice Chairman Sanchez: The other's a general budget, and then the outside agencies, they'll start coming up. Commissioner Sarnoff Gotcha. Chairman Gonzalez: All right. Any discussion on BH.7? No discussion. Mr. Fernandez: No action needed. You go toBH.8. BH.8 07-01098 DISCUSSION ITEM BayfrontPark A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A Management Trust RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE BAYFRONT PARK MANAGEMENT TRUST, IN THE AMOUNT OF $7,116,000, TO PROVIDE FOR THE OPERATIONS, MAINTENANCE AND CAPITAL IMPROVEMENTS OF THE MILDRED AND CLAUDE PEPPER BAYFRONT PARK, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008. 07-01098 Cover Memo.pdf 07-01098 Board meeting.pdf 07-01098 Legislation.pdf 07-01098 Exhibit.pdf 07-01098 Exhibit 2.pdf 07-01098 Exhibit 3.pdf 07-01098-Submittal-Bayfront Park Management Trust Budget Fiscal Year 2007-2008.pdf DISCUSSED Chairman Gonzalez: BH.8. Vice Chairman Sanchez: That's also a discussion item. City ofMiami Page 95 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: Bayfront Park. Vice Chairman Sanchez: Thank you very much. Timothy Schmand: Good evening, Commissioners. Tim Schmand, Bayfront Park, 301 North Biscayne Boulevard. I have a handout for you. The -- we made some reductions to our budget, subsequent to submitting to the City Clerk's Office -- or the Agenda Office, so I have a revised resolution and other documents. Jorge L. Fernandez (City Attorney): Again, Mr. Chairman, on this item, when you were discussing BH.3, you already had some preliminary discussions on how your City's budget is affected by the Bayfront Park Management Trust budget, so you've already, in some ways, have addressed some of the concerns of the Bayfront Park Management Trust budget, so this is only a discussion. Vice Chairman Sanchez: What is there to discuss? Chairman Gonzalez: What is it to discuss? They cut half a million dollars. Chairman Gonzalez: You want to take the other 50, too? Mr. Fernandez: No, no, no, no. I'm just clarifying -- Chairman Gonzalez: Do you want --? Mr. Fernandez: -- process for the City Clerk and -- Commissioner Sarnoff Hold on. I'd like to say something on behalf of Tim Schmand. I've never read a budget before that I could understand on first reading, number one, I have yet to see an executive director come in my office and take a $5, 000 cut in pay so that he could do, I guess it was plantings. I think everybody should take a long, hard look at Tim Schmand and ask themselves, how couldl be more of a director like Tim Schmand Chairman Gonzalez: That's right. Vice Chairman Sanchez: Andl know -- Commissioner Sarnoff And this is a paid for announcement by Tim Schmand Mr. Schmand: Yeah. Thank you very much. Vice Chairman Sanchez: And let me just elaborate on that. He -- not only is he the executive director of Bayfront Park; he's also the executive director ofMSEA (Miami Sports & Exhibition Authority) -- Commissioner Sarnoff Correct. Mr. Schmand: We'll get to that. Vice Chairman Sanchez: -- so he's wearing two hats. Commissioner Regalado: Yeah, but having said that, you're not getting any -- Vice Chairman Sanchez: Compensation. City ofMiami Page 96 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: -- money from MSEA, and we need to resolve that because you're using your staff your resources to run MSEA. Now, MSEA -- Vice Chairman Sanchez: And he just cut half a million dollars. Commissioner Sarnoff I know. Commissioner Regalado: No, but I mean, MSEA did not met for more than a year, but now we have the issue of Chalks and Watson Island and all -- andMSEA needs to meet andMSEA -- you need to meet with people that wants to get on the agenda, like this project -- so it is unfair not to have MSEA cover some of the costs that you have in your staff to run MSEA from your office of the Bayfront Trust, so the second -- what is the budget? Mr. Schmand: The budget this year? Commissioner Regalado: No, for MSEA. Mr. Schmand: Oh, MSEA is -- Commissioner Regalado: Two hundred and forty. Mr. Schmand: We're going to get to that next -- Vice Chairman Sanchez: We'll get to it. Mr. Schmand: -- but it's $240,800, and -- Commissioner Regalado: No. I know. I know. Mr. Schmand: -- there is -- there are some line items in there to cover staffing, and what we had intended to do was enter into an interlocal agreement with MSEA. Vice Chairman Sanchez: Bayfront Park first. Mr. Schmand: Yeah, the Bayfront Park Management, we have cut the budget from 7.116 to 6616, and that's a $500, 000 reduction. As a result of that, a lot of the things that we had been able to do for free before, we will no longer be able to do. The -- Commissioner Regalado: Which is giving $100, 000 to every Commissioner, you know. Mr. Schmand: Well, there was that -- we enjoyed doing that, but -- Vice Chairman Sanchez: That's for starters. Mr. Schmand: In the past, we had been giving $5, 000 grants to nonprofits who wanted to do shows, and over the last five years, we had given away $350, 000. That grant program will no longer be in effect, and any time someone needs tents, tables, chairs, or the portable stage, there'll be a cost associated with it, and noticed that on the cover of the budget, there's a picture of Bayfront Park, there is a fee for the use of that picture, and we'll be with the Manager later. Vice Chairman Sanchez: Hey, we got to make money somehow. Chairman Gonzalez: All right. City ofMiami Page 97 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: And -- so what about -- I think, you know, we did spoke about the future and your plan B because, you know, if you know very well -- we discuss that for a long time -- if casinos are approved next November in the pari-mutuels, two of the sites in the City of Miami, your vote -- Vice Chairman Sanchez: Is gone. Commissioner Regalado: -- is gone. Vice Chairman Sanchez: Sailing south. Commissioner Regalado: It's going to sink. The other issue are the electronic -- Mr. Schmand: The mar -- Commissioner Regalado: -- advertising. Mr. Schmand: -- the marquee sign, yes. Commissioner Regalado: The marquees. Mr. Schmand: Yes. We're still trying to resolve those issues. Commissioner Regalado: No. I'm saying that, you know, I know that you will -- you'll think out of the box, but the reason I ask you about the budget of MSEA is because somehow -- my question is is that budget enough to cover some of your costs of running MSEA out of Bayfront? Mr. Schmand: I think if we enter into an interlocal between the Bayfront Park Management Trust and Miami Sports and Exhibition Authority, there'll be sufficient revenue there to offset our costs -- I mean Bayfront Park with those funds. Commissioner Regalado: But we have not seen the agreement. Mr. Schmand: No. Commissioner Regalado: The MSEA board has not -- Mr. Schmand: The -- it's something -- Commissioner Regalado: -- approve it. Mr. Schmand: -- that would have to be developed between now and the next MSEA meeting. Commissioner Regalado: OK. Mr. Schmand: But anyways, we would appreciate it if you would approve our budget. Chairman Gonzalez: All right, so BH.8 is a discussion item. Vice Chairman Sanchez: May I just elaborate on something? Tim, we often -- we're so busy that we often don't get to say the simplest things in life, which is thank you. It's been a pleasure for me to be the chair and you the executive director of Bayftont Park. When I -- when we approached about the five -- the half a million dollars, you accepted it; we took it to the board, we were OK with it, and once again, it really shows the leadership and, once again, the quality City ofMiami Page 98 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 that you possess where you're basically holding two positions and only getting paid for one, so once again, on behalf of all of us here, we thank you for that. Chairman Gonzalez: We thank you. Vice Chairman Sanchez: So -- Mr. Schmand: Thank you for the opportunity. I'm having a blast, but at the end of the -- it's a discussion item, and approving and adopting the annual budget, so if we could get that -- Commissioner Sarnoff I want to thank you for taking a pay cut. You're the only guy that guarantee you that has stood at that podium today and was voluntarily taken a pay cut based on the financial condition of this City, andl think everybody's hat needs to be off to you because you didn't ask anybody; you just did it, and let me tell you something. It speaks volumes about you, Tim. Mr. Schmand: Thank you very much, Commissioner -- Applause. Mr. Schmand: -- but at the end of the day, I just would like to get it approved so we can move on andl can go home. Vice Chairman Sanchez: And we will on second reading. BH.9 07-01099 RESOLUTION Miami Sports & A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Exhibition ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF Authority THE MIAMI SPORTS & EXHIBITION AUTHORITY, ATTACHED AND INCORPORATED, IN THE AMOUNT OF $240,800, TO PROVIDE FOR THE OPERATIONS AND MAINTENANCE OF MSEA, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2007, AND ENDING SEPTEMBER 30, 2008. 07-01099 Legislation.pdf 07-01099 Exhibit.pdf 07-01099 Exhibit 2.pdf 07-01099 Exhibit 3.pdf 07-01099 Exhibit 4.pdf 07-01099 Exhibit 5.pdf 07-01099 Exhibit 6.pdf 07-01099 Exhibit 7.pdf 07-01099 Cover Memo.pdf Motion by Vice -Chairman Sanchez, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Sarnoff, Sanchez, Regalado and Spence -Jones R-07-0512 Vice Chairman Sanchez: Now the MSEA (Miami Sports & Exhibition Authority) is a resolution, so that one we need a motion for. Chairman Gonzalez: All right. We need to open it to the public, right? Anyone from the public that wants to speak on this item, please come forward to be recognized. Seeing none, hearing City ofMiami Page 99 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 BH.10 07-01100 Off -Street Parking Board none, the public hearing is closed. It's a resolution of the City ofMiami Commission with attachments approving and adopting the annual budget of the Bayfront Park Management -- Vice Chairman Sanchez: No. Chairman Gonzalez: -- Trust. Vice Chairman Sanchez: No, no, no, no, no, no, no. Jorge L. Fernandez (City Attorney): No, no. Vice Chairman Sanchez: MSEA. Mr. Fernandez: BH.9. Vice Chairman Sanchez: BH.9. Mr. Fernandez: Because BH.8 is only a discussion -- Vice Chairman Sanchez: Discussion. Mr. Fernandez: -- item. You will vote on that next Commission meeting. Chairman Gonzalez: Well, I was handed a resolution. OK. BH.9. Vice Chairman Sanchez: So move, BH.9. Commissioner Spence -Jones: Second. Chairman Gonzalez: All right. BH.9, it's a resolution. Vice Chairman Sanchez: So move. Commissioner Sarnoff Second. Chairman Gonzalez: We have a motion, and we have a second. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Gonzalez: Motion carries. Timothy Schmand: Thank you all, and have a great night. DISCUSSION ITEM A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE DEPARTMENT OFF-STREET PARKING, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008, IN THE AMOUNT OF $13,994,429, EXCLUDING DEPRECIATION, AND OTHER NON OPERATING EXPENSES OF $5,036,133, ATTACHED AND INCORPORATED. City ofMiami Page 100 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 07-01100 Legislation.pdf 07-01100 Exhibit.pdf 07-01100 Exhibit 2.pdf 07-01100 Cover Memo.pdf 07-01100 Memo.pdf 07-01100 Letter.pdf DISCUSSED Chairman Gonzalez: BH.10. Commissioner Spence -Jones: Off -Street. Vice Chairman Sanchez: Off -Street, and that's a discussion item. Commissioner Sarnoff Where's Art? Chairman Gonzalez: BH.10. Yes, sir. Art Noriega: Open for discussion. Chairman Gonzalez: What do you have for us? Commissioner Sarnoff I have a question for you. Chairman Gonzalez: Tell us something. Commissioner Sarnoff Yeah. Vice Chairman Sanchez: You need to put something in the record. Chairman Gonzalez: Can you cut your budget by a half a million dollars, too? Can you handle three jobs instead of one? Give us something positive. I mean -- Mr. Noriega: We all aspire -- Chairman Gonzalez: -- you know. Mr. Noriega: -- to be Tim. That's absolutely -- Did he leave already? I congratulated him earlier. We --I knew we were going to get to the issue of why our contribution to the City reduced this fiscal year, and so I wanted to just put a couple things on the record. We did cut our budget fairly significantly, but we kind of ran into sort of the worst of all cases this year with the proposed redevelopment of our garage one, which took our existing garage out of commission for what is roughly -- will be about two years. We lost about a quarter million dollars worth of income on that site during that two-year period We also had all of the debt service for the full forty plus million dollar bond issue come into play fiscal year, as well, which has added about a million eight. Also, we've -- this year get the full year of operation on two, what I'll call, community development lots in Little Havana; another one in the West Grove, and a couple others in Liberty City that don't generate any income but fall to our expense -- fall to the expense side and will do so for at a minimum of five years because they -- as per the CD (Community Development) money that generated those -- or that developed those projects, we're not able to, obviously, generate any income from those, but they do cost us money in utilities and maintenance and landscaping. The final item that really impacted this garage, as we had proposed spending some money on automation this year to automate some of our facilities in order to reduce some of our costs in future years, so that's -- those are really the four significant impacts to our budget are well in excess of what we cut or the reduction, but we were able to cut some expenses and gain some efficiencies so that the contribution to the City as a flat number City ofMiami Page 101 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 would have really been almost zero, but we cut some expenses to get backup to the million dollars. Commissioner Sarnoff So -- Chairman Gonzalez: That's good. Commissioner Sarnoff -- those costs were all of $900, 000? Mr. Noriega: No. They exceed -- well exceed $900, 000. Commissioner Sarnoff Well exceed. Mr. Noriega: Yeah. A million eight in additional debt service. That's double that $900, 000 reduction; another quarter of a million dollars in income reduction as to -- for the loss of garage one for this next fiscal year; add another -- I don't know what the exact number on the CD lots, but probably, as an aggregate, they're probably in the 50, 60, $70, 000 range, and then the automation piece, we've budgeted about a million and a half. Chairman Gonzalez: Let me ask you. How are you doing in the facility in Allapattah? Mr. Noriega: Operationally, from a parking -income standpoint, we're doing about what we expected. We have -- the majority of the lot really is used by the Goodwill employees. We have some transient traffic, and we have a few monthlies. What we're very, very close to doing is -- and we're -- I'm crossing my fingers -- the proposal will get finalized and on my board -- the next board meeting, but as of right now, it's not finished -- is the lease of the entire retail space to a medical -- a test -- a lab testing company, which is going to take the entire twenty plus thousand square feet of retail, and that'll actually generate and would pretty much take that million dollar number up to a million and a half, roughly about a half million dollars in income for that facility alone -- Chairman Gonzalez: That's great. Mr. Noriega: -- but that -- they'll take time to build the space out. I mean, we won't really generate any income on that probably 'til two -- about halfway through the year, so -- Chairman Gonzalez: Are the businesses -- are on the parking facility getting a special discount or special rate or --? Mr. Noriega: Not per se. The rate that we're charging there is a dollar an hour, so it's less -- it's about equal to what we've charged on -street, so it's a very discounted rate as it is. Chairman Gonzalez: OK. Mr. Noriega: I think the issue for us is as the businesses continue to grow -- I they we -- we'll do some business during the peak shopping seasons. I think this will be the first full Christmas we'll be open, andl think that'll make a big difference as well. Chairman Gonzalez: Yeah. Mr. Noriega: We've done a lot, per your suggestion, to increase the signage in the area as well. We did a lot of trailblazing signage on the streets and then also facility signage as well. Chairman Gonzalez: Has that help you? City ofMiami Page 102 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Noriega: It did. Chairman Gonzalez: It did. Mr. Noriega: It helps -- it always helps to attract traffic, so -- Chairman Gonzalez: I knew, because a lot of people thought that that facility belong to -- Mr. Noriega: To Goodwill. Chairman Gonzalez: -- Goodwill, so they wasn't using the facility -- Mr. Noriega: Absolutely -- Chairman Gonzalez: -- so -- Mr. Noriega: -- and we have some additional signage actually coming on line -- Chairman Gonzalez: That's good. Mr. Noriega: -- that was part of a complete signage package we're working on now citywide. Chairman Gonzalez: That's great. Commissioner Regalado: Mr. Chairman. Chairman Gonzalez: All right. Mr. -- yes. Commissioner Regalado: Art, Coral Way -- andl know that you have even done a study, paid by Off -Street Parking, but still there is the need not only on Coral Way, but near US I and 24th, behind the Metrorail, you were trying to do some parking so businesses can stay open at night because there's no parking there, too many residential and several apartment building, but the people cannot afford, so the question is -- and this goes for the Manager -- if we have of the next bond issue -- I'm talking about the street bond -- money to partner with the Off-street Parking Authority in order to build parking, surface parking or parking structures, that way the City and Off -Street Parking can share the benefit. Can we do that? Do we have that? Larry Spring (Chief Financial Officer): Can you ask your question again, Commissioner, real quick for me? Commissioner Regalado: Yes. Commissioner Sarnoff It'll cost you $0.50 now with the new Bayfront Trust group. Mr. Spring: I got 25 in my pocket; I'll give it to you. Commissioner Regalado: Huh? Mr. Spring: Your question was basically can Off -Street Parking participate in the streets bond issuance -- Commissioner Regalado: Right. Mr. Spring: -- that we're looking at. In theory, I think the answer to the question is yes. It is a discussion that we have had with the officials, the executive director, and it's something that City ofMiami Page 103 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 we're trying to work through. We don't have a final solution to the -- to that problem, but -- Commissioner Regalado: OK. Mr. Spring: -- we've been having a discussion. Commissioner Regalado: Here's another problem question for you. Now, the Manager knows about it; Art knows about it. There is a site in Coral Way who's willing to lease an amount, a good amount of land in Coral Way to the City to build the fire station that we need so much, lease the land. We don't need to buy the land, and then the first floor, instead of retail, the fire station; second floor, third floor, parking, and that is an idea. Well, you sort of -- Art, you sort of knowed [sic] about it because you know where it is. Mr. Noriega: Is it --? Commissioner Regalado: In the church. Mr. Noriega: OK. I -- yeah. I don't know it by the fire station. Commissioner Regalado: But that is something that we discuss with the Manager. We don't have to -- we have the money to buy land in Coral Way, but everyday it's getting more difficult, not expense here, but more difficult to find land in Coral Way for a fire station, and trust me, the Fire Department does need the fire station in Coral Way. The response time just to cross Coral Way is getting bigger and bigger all the time, so the question is can we partner with you to build that structure that will be part fire station and part parking and solve the response time and the parking situation for Coral Way? Mr. Noriega: We can certainly look into it. I mean, I don't know the specifics of the fire station. I don't know if there's been any preliminary design done, but I'm open to looking at a partnership with the City. We've done it on a number of projects, so it's not like this will be -- Commissioner Regalado: It can be done. Mr. Noriega: -- breaking -- Commissioner Regalado: It can be done in terms of partnering with the City -- Mr. Noriega: Yes. Commissioner Regalado: -- and the City using the bond money that we have for the fire station, for the Shenandoah fire station, right? Pedro G. Hernandez (City Manager): Commissioner, it can be -- both entities can work together, and we'll explore it further to see the viability of it; see if we can make it work. Commissioner Regalado: Because the only thing -- I mean, the only thing that is different to the concept that you discuss with the property owner and that we discuss is that instead of retail, you have a fire station on the first floor, you know, which is, I mean, fine. I mean, everybody loves fire station. Nobody complains about having a fire station next to it, so you know -- and in Coral Way, you know, you can go two more stories, three more stories. That's a minimum, so we will solve all the problem, but the question -- the fundamental question is can we use street bonds to partner with Off -Street Parking to use those bonds in order to build parking, on -site surface parking? Mr. Noriega: Yeah. We had, months ago, discussions with CIP (Capital Improvement Program) City ofMiami Page 104 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 and with Larry, specifically, as it related -- because portion of the income stream for those bonds comes from parking surcharge, so our suggestion that maybe there'd be an opportunity, especially in some areas where we'd be developing projects or developing parking, that the income wouldn't be sufficient to generate or to pay any debt service or pay for the operation itself; it would require subsidy, and we have a number of potential projects that fall into that category, and we've been working on the logistics of that ever since. A part of that issue is that we come in direct competition with potential CIP projects, so there has to be a prioritization in terms of the type of projects that are needed, so it's been in discussion. We have -- Commissioner, we've been actually talking about this for probably six months already, but you know, there's been some transition, and so Larry andl have continued the discussions in probably the last few weeks, so hopefully, there'll be some allocation available for us for projects, but that amount hasn't been determined, so -- Commissioner Regalado: Yeah, but the point that I'm trying to make is that, for instance, on District 4, which is right at the edge on US 1, there are at least five businesses that will be willing to lease or enter in a long-term agreement with you or the City or whoever to get parking. They don't have parking. You, yourself, know the place -- one of the place. Mr. Noriega: I know the issue, and the issue has been -- it falls directly in what I just explained, which is you have an area where you can't charge the kind of rates that would justify the cost to build it, so it requires a subsidy of some kind because the businesses can't afford to pay what would be a face value for the cost to redevelop the site, and we've been talking about it along the Miami -Dade Transit right-of-way, so yes, that would be an example of a project. Commissioner Regalado: Can we explore the fire station/parking/cafeteria? Mr. Hernandez: We can definitely explore having the fire station at the bottom floor, and then in the air space above be able to have a parking structure, and also the ability to be able to use the street bonds together with Off -Street. Commissioner Regalado: 'Cause I tell you something. The firefighters that are at Shenandoah Park are doing whatever they can, but they only have one rescue truck, and you know, Shenandoah Park is going through certain renovations; you know that -- so sooner or later, they're going to have to leave, and we just don't have the land, and the more we wait, the more difficult the land in Coral Way becomes, and the money that we have is going to disappear, so we are going to get, next year on the same crisis, hey, we need, we really need a fire station because the response time, it's unacceptable, and we don't have the money, and we need to come back, and if we think outside of the box, like they say, we can do a lot of things, and we can resolve the situation once and for all. I don't -- Robert Suarez: Mr. Commissioner -- Chairman, Robert Suarez, Miami Association of Firefighters. We have spoken briefly with the Mayor and the Administration on this type of concept, and we're very in favor of it. We've -- and particular, that area, Station 14, in your district, property is very difficult to come by. That was six years ago that we began looking for that property. The interest on that money hasn't caught up with the increase in the property values. Commissioner Regalado: Yeah, and it won't. Mr. Suarez: It seems to us that that's really the next option, and it -- we're running out of options for building a fire station, and to us, it seems like that's where we need to go, andl really encourage that the Administration look at that idea of incorporating some sort of multiuse property, multiuse development to include a fire station. Commissioner Regalado: OK. City ofMiami Page 105 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 BH.11 07-01102 Off -Street Parking Board Chairman Gonzalez: All right. Mr. Hernandez: We'll all go to church. Commissioner Regalado: We -- we're suppose to meet -- Mr. Hernandez: I know. Commissioner Regalado: -- on this -- Mr. Hernandez: Yes. Commissioner Regalado: -- this week, you know. Chairman Gonzalez: All right. Vice Chairman Sanchez: BH.12. Chairman Gonzalez: This was a discussion item, correct? Mr. Fernandez: Correct. DISCUSSION ITEM A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING 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, 2007 AND ENDING SEPTEMBER 30, 2008, IN THE AMOUNT OF $1,148,169, EXCLUDING DEPRECIATION, TO PROVIDE FOR THE OPERATION OF GUSMAN CENTER FOR THE PERFORMING ARTS AND THE OLYMPIA BUILDING. 07-01102 Legislation.pdf 07-01102 Exhibit.pdf 07-01102 Cover Memo.pdf 07-01102 Memo.pdf DISCUSSED Jorge L. Fernandez (City Attorney): Then BH. 11, which is also Off -Street Parking, but basically dealing with Gusman and Olympia. Chairman Gonzalez: All right. What do you have to tell us on Gusman? Art Noriega: For Gusman, we're proposing -- there's a slight increase in the City's contribution from 336,454 this current fiscal year to 380, 769. The entire increase encompasses really a increase in cost on our end for insurance, which rose to the tune of $70, 000, so that's really -- it's a -- Chairman Gonzalez: How many functions a year do you have at the Olympia? Mr. Noriega: We book -- I think last year we did about a hundred and -- I want to say 130, 140 dates -- Chairman Gonzalez: Really? City ofMiami Page 106 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Noriega: -- a year. Commissioner Regalado: Wow. That's a lot. Chairman Gonzalez: That's a lot. Commissioner Regalado: That's a lot. Chairman Gonzalez: That is a lot. Mr. Noriega: And they range from high school graduations to concerts, to we're now doing corporate events. We did a couple -- Commissioner Regalado: You want to run -- Mr. Noriega: -- of weddings. Commissioner Regalado: -- the Performing Arts? Chairman Gonzalez: Yeah. Mr. Noriega: No comment. Chairman Gonzalez: You don't? Mr. Noriega: No. Chairman Gonzalez: All right. I have to open it to the public, right? Mr. Fernandez: Yeah. Chairman Gonzalez: Anyone from the public that wants to speak on this item, please come forward to be recognized. Seeing none, hearing none, public hearing is closed. Any comments from any of the Commissioners? No comments. BH.12 07-01104 RESOLUTION Off -Street Parking A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Board ATTACHMENT(S), AMENDING THE ANNUAL BUDGET OF THE DEPARTMENT OF OFF-STREET PARKING FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2006 AND ENDING SEPTEMBER 30, 2007, IN THE AMOUNT OF $1,712,454, EXCLUDING DEPRECIATION, TO PROVIDE FOR THE OPERATION OF THE GUSMAN CENTER FOR THE PERFORMING ARTS AND THE OLYMPIA BUILDING. 07-01104 Legislation.pdf 07-01104 Exhibit.pdf 07-01104 Cover Memo.pdf 07-01104 Memo.pdf Motion by Vice -Chairman Sanchez, seconded by Commissioner Regalado, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Sarnoff, Sanchez and Regalado Absent: 1 - Commissioner Spence -Jones City ofMiami Page 107 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 R-07-0513 Jorge L. Fernandez (City Attorney): Then BH.12 is a resolution because you're amending the present year's budget. Chairman Gonzalez: All right. Vice Chairman Sanchez: So move. Commissioner Sarnoff Second. Chairman Gonzalez: We have a motion. Is there a second? Commissioner Regalado: Second. Chairman Gonzalez: There is a second. It's a resolution. Anyone from the public that wants to speak on PH 12 [sic], please come forward to be recognized. Seeing none, hearing none, the public hearing is closed. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Gonzalez: Motion carries. BH.13 07-01040 DISCUSSION ITEM Fire A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A Fighters/Police RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), Retirement Trust 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, 2007, AND ENDING SEPTEMBER 30, 2008, IN THE AMOUNT OF $1,962,134, EXCLUDING NORMAL COST, TO PROVIDE FOR THE ADMINISTRATION OF THE FIPO RETIREMENT TRUST FUND. 07-01040 Legislation.pdf 07-01040 Exhibit.pdf 07-01040 Cover Memo.pdf 07-01040 Memo.pdf DISCUSSED Chairman Gonzalez: BH.13, firefighters. Tom Gabriel. Vice Chairman Sanchez: Discussion item. Tom Gabriel: Good evening, Tom Gabriel, with the chair -- acting as the chair of the Miami Police and Fire Trust. We're here to discuss the budget for 2007 and 2008. Before I do say that, I just want to update everybody on where we were last year. I had to appear and hear the $60 million payment that we had to make under normal cost, which is not under discussion tonight, but through negotiations, through your actions and direction, that last year's normal cost was -- went from 60 million to 46. It was scheduled to be 56 this year. It's now down to 42, so approximately $28 million in savings. On the actual budget for the administration of FIPO (Firefighters and Police Officers), which is the building located on Coral Way, the total cost would be $1,962,134. That's approximately a three percent increase from last year. The total cost to administer this $1.5 billion plan is approximately 5 basis points. That includes all the money management, the building, the checks that go out, all the staff et cetera. That is a very good job of keeping the cost low at five percent, and the only reason why we happen to have an increase this year -- and if you happen to have your budgets in front of you -- the cost for City ofMiami Page 108 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 BH.14 07-01101 Department of Solid Waste professional service legal went from 80,000 last year to 150, 000 this year, an increase of 70,000. It almost doubled, and that is unfortunately, a direct relation to having to hire outside counsel to deal with what we call 'forfeiture hearings, " and this is where our members step outside the law, get convicted of a felony, and then therefore, lose their pensions. That last year -- that 80,000 brought back -- andl say unfortunately because that means that one of our members misstepped [sic] -- beyond the law, that resulted in approximately $150, 000 of savings. We have scheduled, I think, five hearings this year; probably going to bring in, if they all are found guilty in violation of the law, lose their pension, a couple hundred thousand more, so it's unfortunate because each time that happens, we get a black eye, but I just wanted to note that our budget would have been flat had not it been for this increased forfeiture hearings that we have to have. We're not -- we are obligated under the law to have them. It's in our best interest to hire outside counsel, and that's why it went up. As for -- Commissioner Sarnoff You guys still leave that bucket of money in the locker room? Mr. Gabriel: Yeah. Commissioner Sarnoff Oh. Just -- Mr. Gabriel: The -- this is for Police and Fire, administration. We have had a major increase in the amount of retirees, approximately 30 percent, over the last couple of years. We have done that with five employees; we used to have six. That's because we've reinvested some into technology, and we've -- if you notice down at the bottom of the budget, machinery and equipment, last year we spent a little extra on technology, and that allows us to handle the extra costs and leaving your budget basically flat. Chairman Gonzalez: All right. Mr. Gabriel: IfI can -- Vice Chairman Sanchez: Thank you. Chairman Gonzalez: Anyone from the -- Mr. Gabriel: Thank you. Chairman Gonzalez: -- public that wants to speak on this item, please come forward. Seeing none, hearing none, public hearing is closed. This is a discussion item. 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, FLORIDA; IMPOSING SOLID WASTE ASSESSMENTS AGAINST ASSESSED PROPERTY LOCATED WITHIN THE CITY OF MIAMI, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007; APPROVING THE RATE OF ASSESSMENT; APPROVING THE ASSESSMENT ROLL; AND PROVIDING FOR AN EFFECTIVE DATE. City ofMiami Page 109 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 07-01101 Legislation.pdf 07-01101 Exhibit.pdf 07-01101 Exhibit 2.pdf 07-01101 Exhibit 3.pdf 07-01101 Exhibit 4.pdf 07-01101 Summary Form.pdf 07-01101 Memo.pdf 07-01101 Pre-Legislation.pdf Motion by Vice -Chairman Sanchez, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner Gonzalez, Sarnoff, Sanchez, Regalado and Spence -Jones R-07-0514 Chairman Gonzalez: BH.14 is a resolution, and Solid Waste. Vice Chairman Sanchez: That's setting the 325? Chairman Gonzalez: Setting the -- yeah, right. Mario Soldevilla: Mario Soldevilla, director of Solid Waste. This is setting the solid waste fee at Vice Chairman Sanchez: The fee. Mr. Soldevilla: -- at $325 since it has been for the last year. Chairman Gonzalez: That's a bargain. Vice Chairman Sanchez: All right. So move. Commissioner Sarnoff Second. Chairman Gonzalez: All right. We have a motion, and we have a second. Anyone from the public that wants to speak on BH.14, please come forward. Seeing none, hearing none, public hearing is closed. All in favor, say "aye." The Commission (Collectively): Aye. Vice Chairman Sanchez: Just -- Chairman Gonzalez: Those opposed have the same right. Vice Chairman Sanchez: -- out of curiosity, what are we subsidizing it today? What is it? Chairman Gonzalez: Thirteen million dollars. Mr. Soldevilla: I'm sorry? Chairman Gonzalez: About $13 million, right? Mr. Soldevilla: About 13 million. Commissioner Regalado: Mario, question. How many trucks are not in service now? City ofMiami Page 110 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Soldevilla: Now, we -- last year we purchased 16 trucks. We have received all 16 trucks, so the fleet that we have from Lodal has been really put out of service. We're only using those as spares, and we -- the -- we have all of the new trucks being serviced right now. Commissioner Regalado: So there is no trucks with mechanical problems as --? Mr. Soldevilla: No. These are all -- we have all brand-new trucks for the -- for garbage collection. Commissioner Spence -Jones: You finished? I just want to ask you a quick question. Not the one -arm bandits, but the other one, the traditional garbage trucks, how many do we actually have of those? Do you know? Mr. Soldevilla: We have 17 of those. Actually, we're using around seven of them, and we have purchased four, which are yet to come in, but they should be in within this calendar year. Commissioner Spence -Jones: So what's happening with the other ten? Mr. Soldevilla: They're, you know -- Commissioner Spence -Jones: They're obsolete now because -- Mr. Soldevilla: They're obsolete. They're -- you know, they need repair, so we utilize seven of them on a regular basis. Commissioner Spence -Jones: But you're kind of getting away from those kind, right? Mr. Soldevilla: No. We still need those. Commissioner Spence -Jones: OK. Mr. Soldevilla: -- because they are -- we have like handicap routes that need to be collected. Commissioner Spence -Jones: Oh, I see. Mr. Soldevilla: We have routes that are one-way streets -- Commissioner Spence -Jones: OK. Mr. Soldevilla: -- or dead -ends, where we utilize the traditional trucks. Commissioner Spence -Jones: What do you do with the trucks when you don't want -- when you don't need them anymore? You just put them out for auction? Mr. Soldevilla: Once -- they're auctioned off. Commissioner Spence -Jones: OK. Thank you. BH.15 07-01103 DISCUSSION ITEM Virginia Key Beach A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A Park Trust RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE VIRGINIA KEY BEACH TRUST'S BUDGET REQUEST OF $1,816,156, IN OPERATING FUNDS FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008. City ofMiami Page 111 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 07-01103 Legislation.pdf 07-01103 Exhibit.pdf 07-01103 Exhibit 2.pdf 07-01103 Exhibit 3.pdf 07-01103 Exhibit 4.pdf 07-01103 Exhibit 5.pdf 07-01103 Cover Memo.pdf MOTION A motion was made by Vice Chairman Sanchez, seconded by Commissioner Sarnoff, and was passed, with Commissioner Spence -Jones voting no, to set the budget of the Virginia Key Beach Park Trust at $1, 316,155 for the 2007-2008 fiscal year. Commissioner Spence -Jones: All right. Sir -- I don't want to have everybody go through. I'm going to at least respect Patrick Range, which is -- his grandmother was really the -- Ma Range, and we all know -- and she was a City Commissioner -- was the person that really pushed to make sure that Virginia Key is happening. I want to at least give him a minute to say something, but I'd like to at least proffer -- I think the Trust has already made a reduction in their budget, a deep cut in their budget, andl think that -- I would ask for the Commission to support, at least -- andMr. Manager, I hope that have your support on it -- to at least take the first initial cut that they gave, which was, I believe, three -- Michael Boudreaux (Director, Strategic Planning, Budgeting, and Performance): Three hundred thousand. Commissioner Spence -Jones: -- OK, yes. Let's -- ifI could get the support from the Commission on that issue of just giving them the initial cut that they agreed, and that the Manager agreed on so that we can accommodate what they need to have done, because I don't want them to be in the middle of their project and then have a issue with not having the necessary funding. Vice Chairman Sanchez: What --? Commissioner Spence -Jones: It's 364. Vice Chairman Sanchez: I will make a motion that the total reduction in FY-08 for the Virginia Key Beach Trust be $364, 800. So move. Mr. Boudreaux: Over the prior year -- Commissioner Spence -Jones: Second. Mr. Boudreaux: -- FY-07 allocations? Vice Chairman Sanchez: FY-07, yes. Mr. Boudreaux: And that will still be $500, 000 over their request. Commissioner Spence -Jones: What -- David Shorter: Excuse me. That should be -- Commissioner Spence -Jones: OK. Mr. Shorter: -- over the -- Commissioner Spence -Jones: From last year's request, right? City ofMiami Page 112 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Shorter: No, from the request that we sent in, which was 1.8 -- Commissioner Spence -Jones: Can you state the dollar amount so that we're clear? Mr. Shorter: Yes. Our budget that -- the request that we made was 1,816,156. We reduced it 300,000 to 1,516,156. That is the number -- Vice Chairman Sanchez: All right. Let's -- fuzzy math. Mr. Shorter: Right. Vice Chairman Sanchez: OK. Let's go. I'm going to make a motion that the total budget for this year, for Virginia Key Beach Trust, will be 1.316.155. So move. Chairman Gonzalez: Is it -- we have a motion. Is there a second? Commissioner Sarnoff Second. Chairman Gonzalez: There is a second. Commissioner Spence -Jones: Can I please ask -- allow for Patrick Range to at least make a statement on the record, please? Patrick Range: Mr. Chair. Thank you very much, Mr. Chair, members of the Commission. Patrick Range, trustee of the Virginia Key Trust. I just wanted to say a quick word. Again, we have been in agreement with the cut that we were originally asked to make by the City of 300, 000. That was the cut that we were originally asked to make, and again, you know, we are pushing for an opening of this City park, this treasure, this jewel of the City, which, you know, is some of the only beachfront that the City ofMiami has, you know, and again, you all know the merit of the project that we're bringing before you. Certainly, I want to speak on my deceased grandmother's behalf, who was the champion for this project and who fought in her last years of her life to see this project take place, and you know, we've worked very hard. The City has demanded certain things of us; asked us to have a certain level of accountability as far as our spending; asked us to make certain cuts; asked us to meet certain deadlines, andl think that anyone on your staff and Administration could certainly testify that we have done that, and we have tried to be good stewards of your land. We are citizen volunteers who, you know, want to see this project happen for the benefit of all of our citizens. Vice Chairman Sanchez: Patrick, with all due respect to you and your grandma and all those who serve on the Virginia Key Trust, let me just say that you have, how much, is it 600,000 that's not being used right -- Commissioner Spence -Jones: Eight hundred. Vice Chairman Sanchez: -- 800,000 that's set aside right now -- Commissioner Spence -Jones: That's rollover. Mr. Range: But -- Vice Chairman Sanchez: -- not being used. Being rolled over. I understand. Mr. Range: Correct. City ofMiami Page 113 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: I understand. Now, let me just proffer something. We could always, as we do, midyear appropriation, where if the funds should be needed, that it'll come in front of this Commission, as long as the project moves forward, but if the project doesn't move forward, really, in all due respect to you and the project in itself, money cannot -- at this time, we can't afford to have money sitting around. Mr. Range: Just a point of clarification, Commissioner. Commissioner Spence -Jones: And l just want to be very clear on that statement and make sure I put on the record, the only reason why the project has not moved ahead to even go into the arena of construction or even building or anything is because of the City. It's not because of the Trust, so that -- Mr. Range: That's correct, and also an additional point of clarification. The funds that we have rolled over have been primarily for positions, you know, which we had -- which we're looking to bring on this year, so there are positions that we have only held back -- Vice Chairman Sanchez: But positions for what? The museum's not even built. Mr. Range: Positions for maintenance of the park -- Vice Chairman Sanchez: Oh. Mr. Range: -- which we are, again, planning to open in February, so these are the -- that is the amount of the funds that were roll -- were being rolled over, so it's not that we did not use them or were not planning to use them -- Vice Chairman Sanchez: And are -- you project it to open in February? I mean, that's what your -- you're opening date -- Mr. Range: Yes, sir. We -- Vice Chairman Sanchez: -- is projected Mr. Range: -- are opening February I. Commissioner Spence -Jones: The park itself. Mr. Range: The park itself. Commissioner Spence -Jones: Not the museum. Mr. Range: Not the museum, but the park itself which will have amenities for the kids, citizens alike. It will include the beach. You know, includes all the work that we've done on the beach, and the, you know, restrooms and pavilions that are there, and again, this will, you know, prevent us from having the proper funds to operate and maintain the park, which we've already spent so much money in bringing up to -- in restoring. Commissioner Spence -Jones: Mr. Range -- andl want to go ahead and close out on the item -- but are you comfortable in -- and the board comfortable with us approving what has been proffered with a midyear -- with the option of being able to come back if it is needed? Mr. Range: But the only concern is that midyear, we will already be at the park's opening, and you know, in addition, I just have to say, as well -- City ofMiami Page 114 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Vice Chairman Sanchez: Well, it doesn't have to be midyear. It -- Mr. Range: -- you know, we have fought -- Commissioner Sarnoff Wait, wait. Mr. Range: -- very hard to obtain -- Commissioner Sarnoff Let me say something. Commissioner Spence -Jones: He's saying that it does not have -- Commissioner Sarnoff Let me -- this is in my district, so let me say something. Everybody could stop with the ear candy. There's going to be no midyear appropriation. It's going to get worst. It isn't going to get better. Mr. Hernandez: Thank you, thank you. Commissioner Sarnoff There's not going to be a fiscal year '09 budget that's going to come in with more money. You could stop this -- let's get to the -- you know, he says we're going to heaven, but no one wants to die to get there. Let's be real here. Let's stop the ear candy. There's going to be no midyear anything in Miami. Let's just do what we fiscally have to do, you know. Vice Chairman Sanchez: Make a motion. Commissioner Sarnoff CIP is going to get up here and they're going to talk about constitutional rights in a minute, and they have every right to, but let's stop the ear candy. It's time to cut the budgets. Why? Because somebody didn't vote correctly, either at the state or the federal level, but let's stop kidding ourselves. You know, let's stop this roundabout in January of '09 something magic is going to happen. I'll tell you what's going to happen. Sixty more million dollars is coming out of our budget, so stop kidding yourselves. Chairman Gonzalez: Right. Vice Chairman Sanchez: Make a motion. Commissioner Sarnoff The motion is that they have a budget of 1.316 million. Vice Chairman Sanchez: After that -- Chairman Gonzalez: All right. Vice Chairman Sanchez: -- argument, I got to second it. Chairman Gonzalez: We have a motion. There was a motion and there was a second on that same amount. What we need to do is have roll call, please. Priscilla A. Thompson (City Clerk): We're roll calling the motion that was made by Sanchez, second by Sarnoff? Chairman Gonzalez: Um -hum. Ms. Thompson: The roll call. Commissioner Regalado? City ofMiami Page 115 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: Yes. Ms. Thompson: Commissioner Spence -Jones? Commissioner Spence -Jones: No. Ms. Thompson: Commissioner Sarnoff? Commissioner Sarnoff Yes. Ms. Thompson: Vice Chairman Sanchez? Vice Chairman Sanchez: Yes. Ms. Thompson: Chairman Gonzalez? Chairman Gonzalez: Yes. Ms. Thompson: The motion is approved, 4/1. Chairman Gonzalez: Next. Vice Chairman Sanchez: All right. Jorge L. Fernandez (City Attorney): Mr. Chairman, point of order. In essence, while Commissioner Sanchez is dealing with BH.3, generally speaking, some of these items have a specific number, like the issue you just voted on was BH.15 -- Chairman Gonzalez: OK, so -- Mr. Fernandez: -- and so in that sense, you're sort of like going like this. Chairman Gonzalez: -- we already did -- Mr. Fernandez: BH.15. Chairman Gonzalez: -- BH.15. All right. Vice Chairman Sanchez: All right, but on the budget -- and we brought them out of order because they wanted to come up and talk on the issue. Commissioner Sarnoff That's fine. Vice Chairman Sanchez: Let's get -- Chairman Gonzalez: Yep. Vice Chairman Sanchez: -- back to that item. Chairman Gonzalez: That's fine. BH.16 07-01042 DISCUSSION ITEM Civilian A DISCUSSION OF MIAMI CITY COMMISSION REGARDING A Investigative Panel RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE PROPOSED BUDGET FOR THE CIVILIAN City ofMiami Page 116 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 INVESTIGATIVE PANEL, IN THE AMOUNT OF $1,106,561, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008. 07-01042 Legislation.pdf 07-01042 Exhibit.pdf 07-01042 Cover Memo.pdf 07-01042 Memo.pdf 07-01042 Pre-Legislation.pdf MOTION A motion was made by Commissioner Regalado, seconded by Commissioner Spence -Jones, and failed, with Chairman Gonzalez, Vice Chairman Sanchez, and Commissioner Sarnoff voting no, to accept the budget of the Civilian Investigative Panel with the $100,000 budget cut proposed by the Civilian Investigative Panel. A motion was made by Vice Chairman Sanchez, seconded by Commissioner Sarnoff, and passed with Commissioners Regalado and Spence -Jones voting no, to accept the budget of the Civilian Investigative Panel with a $150,000 budget cut. Chairman Gonzalez: All right. BH.15 we did earlier. BH.16, Civilian Investigation Panel. Brenda Shapiro: Thank you, Mr. Chairman. I'm asking my colleagues to join me at the podium to answer questions, should they be asked. This is a discussion item. We were originally -- the panel voted a budget that represented a $10,000 cut from last year. We were asked to reconsider; we did. We were asked to give back $85, 000; we gave back $100,000. There are some facts, I think, that the Commission needs to understand. We have a chief investigator, and we've requested two full-time investigators to investigate 300 cases that we receive from the City ofMiami Police Department Internal Affairs. They have 27 investigators to investigate those same 300. We have an additional 21 to, depending upon the year, 30 complaints that come directly to us from citizens. You heard today we're going to get a complaint tomorrow. That's going to be filed by the FOP (Fraternal Order of Police). Currently, as I stand here before you, we have one full-time investigator. He's our chief investigator. In 2006 our budget called for $220, 000 for investigators. We had four subcontracted investigation firms investigating the 300 cases that we process on a yearly basis. Chairman Gonzalez: How much are you charge an hour for the investigators? Ms. Shapiro: At that time, we were paying $70 an hour. Chairman Gonzalez: And how much are you paying now? Ms. Shapiro: We have requested two investigators, full-time with us, as staff at $50, 000 each, so that's $100, 000 for investigators, where last year -- Chairman Gonzalez: But how much are they going to be making? Ms. Shapiro: -- it was a $220, 000 request. Chairman Gonzalez: About how much are they going to be making an hour? Ms. Shapiro: They're going to be making -- Commissioner Regalado: Mr. Chairman. Chairman Gonzalez: They charge by hour or --? City ofMiami Page 117 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Ms. Shapiro: --flat salary, Commissioner. They're going -- Chairman Gonzalez: They're going to -- Ms. Shapiro: -- to be making $50, 000 a year. We were paying more to investigator firms on a contractual basis at $70 an hour, and so now we're saying give us two full-time investigators, and -- Chairman Gonzalez: Seventy dollars -- Ms. Shapiro: -- let them do the work. Chairman Gonzalez: -- an hour, plus expenses or --? Ms. Shapiro: Was what we were paying, yes. Chairman Gonzalez: Plus expenses? Unidentified Speaker: Last year. Ms. Shapiro: Last year. This is -- and it's reflected in the budget -- at $50, 000, per investigator, and all the salary benefits, of which there are not many, and the cost of living expenses are built into this budget, so our budget request is now $1,106,000. We removed from the line our public relations person. That was $52, 000. We have taken out a reserve private investigator on an as -needed basis that we allocated 35, 000 for; we've removed that. We have removed travel. We have removed other expenses to get the hundred thousand. That represents a nine percent cut in our budget request, andl also congratulate the Bayfront Trust. They've taken a seven percent cut. We are all taking cuts, that's correct, but now I need to address the space. Before this Commission, in your July meeting -- end of July, beginning of August -- we withdrew our request for space because we needed you to understand it better, and I'm going to explain it now. The City ofMiami negotiated a lease for us in our current downtown office space at $22.66 a square foot. Our landlord offered the space to the City and offered to build out that space at no cost to the City. The space would give us 4,000 square feet of space. We now have 2,500 square feet of space. The investigator -- our chief investigator cannot interview a witness in his office because his office is a converted closet. I don't know that any of you have visited our office space. It is far from luxury space, but is it accessible to Metrorail, it is accessible to Metromover, and it is accessible to the bus line so that the citizens of the City ofMiami, or any other citizen who wants to level a complaint against the City ofMiami policemen, has access to us. Accessibility is extremely important, and this gives us the opportunity to interview witnesses, to conduct investigations as they should be conducted. Tonight you wisely agreed that the City needs more police officers, yet you want us to investigate the current number with only one investigator currently, and we're asking for two more, andl will repeat, that gives us three investigators to investigate, minimally, 300 complaints a year, when the City department has 27 investigators to do the same job. Do we need the space? Yes. Do we need the investigators? Absolutely. The citizens of this City, it was announced this morning, 76 percent of them who voted for it, asked you to create us. They gave us a task to do, and we have done it, andl would point out that we have not asked for major increases in our budget over the years, and we have taken a nine percent cut. Now I know, Commissioner, you have told us we have to take more. That's a decision you have to make, andl don't envy the position you're in, because there are vital services that are standing before you. You've had to make increases in some department requests. You've come to that conclusion, but would ask you to recognize the need for what it is we do, how well so few have been doing it, and if you question the devotion of my colleagues, look at them. It is 20 minutes after 10; they have been here at my request, since 5 o'clock this afternoon to appeal to you to pleas understand the importance of what we do, that we're not City ofMiami Page 118 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 asking for luxury space. We have the same view of downtown Miami that the president ofMacy's has. We're one block from where that is. That rent negotiated by the City is more than reasonable. You can't find that rent in downtown Miami. Our landlord requires us to tell him, by March 8, whether A, we're renewing our lease, let alone taking the additional space. To renew our lease will cost $15, 000. To add additional space will add total $45, 000 in rent, including the 15, but if you choose to move us, that's going to cost $25, 000 just in moving expenses, so we would ask you to please understand our need, respect the fact that we have worked very hard and diligently to cut nine percent from our budget, which we have done; that we need our two full-time investigators, and we need additional space, and I'm open to any questions you might have. Commissioner Regalado: Mr. Chairman. Chairman Gonzalez: I'm just looking at the payroll, and the payroll is something that is, you know -- I mean, the executive director is making 141,000 -- 155,000 what your request for this year. That doesn't include fringe benefits, I'm sure. Ms. Shapiro: It does, and let me explain why that figure is what it is. Chairman Gonzalez: Not, but let's go -- assistant director, $107, 000. We go back to -- Vice Chairman Sanchez: How much does the attorney make? Chairman Gonzalez: Pardon me? Vice Chairman Sanchez: How much does the attorney make? Chairman Gonzalez: The attorney makes two hundred and thirty five thou -- Ms. Shapiro: No. Chairman Gonzalez: -- $236, 000. Ms. Shapiro: No, Mr. Chairman, he does not. Chairman Gonzalez: Does not? Ms. Shapiro: The re -- no. The re -- Chairman Gonzalez: Isn't this your budget [sic], Charles C. Mays? Ms. Shapiro: Two -- in the year 2007 -- Chairman Gonzalez: He made two hun -- Ms. Shapiro: -- our budget request -- Chairman Gonzalez: -- hundred and thirty-nine thousand. Ms. Shapiro: No, he did not. Let me -- Chairman Gonzalez: Did not. Ms. Shapiro: -- explain it to you. Our budget request for 2007 was the 235, but we have a contract with that independent counsel, and the contract limits him, and so we didn't use that City ofMiami Page 119 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 money, and we didn't give that raise. Chairman Gonzalez: OK. What is the actual salary of the --? Ms. Shapiro: The actual salary is -- Chairman Gonzalez: It's 214? Ms. Shapiro: -- $175, 000 -- Chairman Gonzalez: How much? Ms. Shapiro: -- and the benefit package brings the total to 214. Chairman Gonzalez: Two hundred and fourteen thousand dollars. Ms. Shapiro: Mr. Gonzalez -- Chairman Gonzalez: This is outrageous. Vice Chairman Sanchez: All right. Ms. Shapiro: -- could point out to you that, first of all, we require the independent counsel to have seven years of practice. A student coming out of the University ofMiami School of Law now, who is learning, can interview in downtown Miami in a range, beginning from 100,000 to 165, 000. The fact of the matter is that independent counsel has been doing this for 20 years, has expertise in municipal law, criminal law, and understands the police department -- Chairman Gonzalez: Let me tell you. I know a lot of -- Ms. Shapiro: -- but we were told that salaries -- these are City ofMiami -- two of these are City ofMiami employees who fall under the agreements made. Chairman Gonzalez: Let me tell you. I know a lot of young attorneys that just came out of the university, and they're making 70,000, $60, 000. Ms. Shapiro: And they just came out of the university. They don't have 20 years of experience. Our attorney is getting 175 because he has 20 years of experience. Commissioner Sarnoff Let me -- Vice Chairman Sanchez: Mr. Chairman. Chairman Gonzalez: Yes. You got it. Commissioner Regalado: Can I --? Vice Chairman Sanchez: Go ahead. Go ahead, go ahead. Commissioner Sarnoff Well, let me just say that their issues are -- their executive director, I don't think they have a choice, is their problem. Unless they do, their assistant director, I don't think they have a choice, because these are what they call employees on loan from the City. Ms. Shapiro: Correct. City ofMiami Page 120 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Unidentified Speaker: That is correct. Ms. Shapiro: That is correct. Commissioner Sarnoff Am I right on that? Ms. Shapiro: You're correct. Unidentified Speaker: If you take them from them --from us, you will move them to another department within the City -- Ms. Shapiro: And pay them the same. Unidentified Speaker: -- same thing. Commissioner Regalado: With the same salary. That's the -- Commissioner Sarnoff So the budget -- Vice Chairman Sanchez: Same thing as Economic Development. Commissioner Sarnoff Two thoughts. Sorry. The budget to us is the same. In other words, if these are civil service employees that will inevitably get put back in the hopper, so to speak, they'll be back in the -- in their mix. When I looked at this budget, the two things that startled me -- well, not startled. I thought that the City ofMiami could find rent for them in one of our facilities. I've since -- Mr. Manager, is there any -- I always find it interesting that we cannot find rent for folks that need 4,000 square feet. There's nothing we have in a city building that would give them 4,000 square feet? Because we're paying ourselves. Commissioner Spence -Jones: MRC (Miami Riverside Center) doesn't have it? Pedro G. Hernandez (City Manager): No. As a matter of fact, MRC is -- Commissioner Spence -Jones: It's packed? Vice Chairman Sanchez: Full to capacity. Mr. Hernandez: -- packed. We're looking for additional space to be able to move people from MRC to other locations. Commissioner Sarnoff So there is no space in any City building, CRA (Community Redevelopment Agency), nothing, right? Mr. Hernandez: Not that I'm aware of. Commissioner Spence -Jones: I know -- Commissioner Sarnoff Well -- Commissioner Spence -Jones: -- not in the CRA. Commissioner Regalado: Can I say something? Oh, you finish? Commissioner Sarnoff -- the other issue is the attorney. I have a organic disagreement with the chairlady, andl believe that you could get an attorney for about 100 to $125,000 who could City ofMiami Page 121 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 have five to seven years experience easily, and you may even be able to do more than that. That would fulfill their needs. I think their attorney is actually holding them to a heavy contract here. Rudy De La Guardia: Commissioner, ifI may? Our attorney is on contract. His contract expires January 8. Commissioner Sarnoff Right. Mr. De La Guardia: There's nothing that we could do about our attorney, but I beg to differ on the issue of salaries. The ordinance requires that we have seven years experience from our legal counsel, and they be experienced in municipal law, constitutional law, whatnot. You're not going to find an attorney with that type of experience or background for under $150, 000, and I believe we spoke to that issue. If you can find an attorney with a reputation of the attorney that we have at the price that we got him, I'd be hard-pressed to believe that. We are paying our attorney on a 1099 basis, so we're setting the -- savings the City additional funds because they don't have to provide the matching contributions to social security and the other things that are required because he pays his own taxes. The other benefits that he receives that takes him above the 175 are for his pension. I believe that he's entitled to a pension. He has a car expense because he has to do traveling to coordinate and help the investigators do the job that they're supposed to do, and what other benefit does the attorney have? Commissioner Sarnoff I don't know. Mr. De La Guardia: Cell phone. Commissioner Sarnoff With all due respect, you know, I guess if you wanted to tell me what a doctor earns, if you want to tell me what a dentist earns -- I've worked most of my life as an attorney. I know constitutional law. I don't know municipal law. I always defer to the City Attorney on that. Don't find it that difficult, with all due respect. Ms. Shapiro: He told me it was easy. Mr. De La Guardia: Commissioner. Commissioner Sarnoff I did. I actually saidl thought municipal law was easy, butt defer to you, Mr. City Attorney. Ms. Shapiro: Deferring to you, Mr. City -- Commissioner Sarnoff And l just can't -- Mr. Fernandez: We make it look easy. Commissioner Sarnoff -- sit here and really buy this -- what I'm being told. I know you can find an attorney for anywhere between 125 and 150, andl think you could find one very easily. Mr. De La Guardia: Commissioner, in a conversation that we had, I said that there would be a panel that was going to study the contract, and then before anything was done that I would consult with you. That's still on the table. We are going to form -- a committee has been formed We will address the attorney, but we need to have an attorney that's going to be able to afford us the expertise, the knowledge, and the support that the chief and his entire legal department provide him. I can't rely on a five-year, seven-year attorney to have the same expertise that Mr. Mays has or the same expertise that the entire Legal Department of the City ofMiami does. We need to be advised to make sure -- City ofMiami Page 122 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff I was never nervous -- I would never be nervous going against the City ofMiami, so I don't -- I really don't get this. I mean -- and I'm sorry, Jorge. I'm playing a little bit, but a seven-year attorney is a capable attorney. I mean, you're talking about a savvy guy at seven years out. Commissioner Spence -Jones: Mr. City Attorney, can you please respond to it because everyone keeps mentioning you regarding this whole issue of --? Commissioner Sarnoff Well, I'm playing a little bit with him, but think a savvy -- Commissioner Spence -Jones: Yeah, but I'd like to hear his response, though. Mr. Fernandez: Is there a pending question? Commissioner Spence -Jones: Yes. The question is, based upon what Madam Chair has mentioned and the other young man, he mentioned the fact that -- for an attorney of seven years with this type of experience, is this salary range a normal amount? Mr. Fernandez: For an attorney of seven years, I can tell you what we pay -- Commissioner Spence -Jones: With this -- seven years with this type of experience, these type of qualifications that he's just mentioning now. Do you want him to repeat the qualifications again? Mr. Fernandez: No, no. Again, I understand what the requirements are because, in fact, the City Attorney has a role in consenting to the CIP having a general counsel, as it were -- Commissioner Spence -Jones: OK. Mr. Fernandez: -- and so I'm very familiar with the whole process. If we're not speaking about the gentleman who presently holds the position, whom I know quite well, who has more than 20 years -- if he's saying only 20 years, he's trying to knock off a few years. He's getting closer to 30 years of legal experience. Then for an attorney with that quantum of experience, a salary like he's being paid is a bargain, as far as I'm concerned. The only analysis thatl can make is with the experience that I have in my office and in other local government offices, an attorney with five to twelve years experience -- and seven falls right there in the middle -- and their charter or their rules of procedure requires at least seven years, I believe that in local government offices, that attorney would be pulling anywhere between a hundred to a hundred twenty-five in that neighborhood. That's what an attorney in my office -- Commissioner Sarnoff Right. Mr. Fernandez: -- with seven years experience would pay. However, an attorney with almost 30 years of experience -- Commissioner Sarnoff Correct. Mr. Fernandez: -- would be making 170, 160, thereabouts -- Commissioner Sarnoff Right. We're not -- I'm not -- Mr. Fernandez: -- and that's local government and that's competitive local government rates. Commissioner Sarnoff We're on the same page. City ofMiami Page 123 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. De La Guardia: Mr. Chair, if we get back to the point of the contract that we're under right there. There is nothing that we could do about it at this point. Come January, we can address the issue, and come January, we can sit and certainly negotiate that contract with Mr. Mays, and we'll come to you for advice or recommendations, but we need to have a very competent attorney, andl believe seven years is the minimum that's required by the ordinance. Commissioner Spence -Jones: Commissioner -- Chairman Gonzalez: Commissioner Regalado, and then Vice Chairman Sanchez -- Commissioner Regalado: Thank you. Chairman Gonzalez: -- and then Commissioner Spence -Jones. Commissioner Regalado: And thank you, (UNINTELLIGIBLE), so this whole discussion is about the attorney because there's nothing you can do about the executive because they are on loan from the City ofMiami. As a matter of fact, they went from Civil Service Board, something. Ms. Shapiro: They were in the Office of Professional Compliance. Commissioner Regalado: Exactly, to -- so if you were to say, well, we want our own executive director, you do a search, and we'll pay him or her $50, 000, they will go back to the City because they are civil servants, and they will keep their salaries and -- not maybe their office or not maybe their title, but the salary, and we, the City, will continue to pay, and we will probably be happy because we reduce your budget, but the fact is that people kept getting paid, so the only issue here is the attorney. I think that what we're doing here is the right thing; that we're doing - - you know, we're going through each and every department, but I'm a little uncomfortable because we have gone after, in details, through the budget to the different agencies that are outside of what we call the government ofMiami, and those agencies, Bayfront Trust, Virginia Key, the CIP, are the soul of the City. These are the agencies that feed the need of the residents, whether the Virginia Key in the historic way, or the CIP, because the citizens ofMiami wanted to have a real agency that would investigate and stop, if possible, any police abuses, and we seem to treat these agencies are outside. I mean, we get into discussions and nasty debates about one department. When we almost want to crush an agency, we have to do it because we have to cut. The fact of the matter is that this agency has been the only entity, as an agency created in the history of the City ofMiami by the voters. The only one. There's no other entity as an agency of government ofMiami created, and the fact that the -- that people went out and vote, and we went two years, three years and -- Ms. McElroy was one of the persons that was here every week coming back and coming back, on how it should be, until we got it right. I think it would be a disservice to the City ofMiami to not give this agency what they really need to work, whether it be space, wherever you can find it -- rooftop of the MRC. Although, I think that -- I've never been to the place, but I've gone by, and think that it's the logical place to be, because the people that are going to file a complaint, number one, 90 percent will be people that are poor, that are probably ethnic, be Hispanic or Afro-American, and they don't want to be seen going into a little house in the middle of a street with no other construction (UNINTELLIGIBLE) CIP. They would rather be walking through downtown and go into a building and file a complaint because, after all, they are afraid of the police department, so I just hope that we can fix this, because to me, it's the soul of the City. It is -- cities need to have governments and that, but this is the face of the City. This is us saying to the residents, you know what? If something happens to you because of a police officer did not perform, you have a recourse, and you have a -- at least you have a -- I just got a e-mail (electronic) this afternoon of a person that wanted to know what can I do, what can I do? I was not treated well by a police officer. I just wrote back saying, well, you need to go to the CIP. That's all, because that person went to Internal Affairs, and Internal Affairs says there was no cause to investigate, so I don't know. I -- Mr. Manager, regarding the space and regarding the budget, what is the place where all the money comes City ofMiami Page 124 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 when we need money, that -- what is the -- the 40 -- from the place where the $42 million were -- oh, I have it here. Commissioner Spence -Jones: NDA (Nondepartmental Account). Commissioner Regalado: Huh? Commissioner Spence -Jones: NDA? Commissioner Regalado: No, no. The place that is -- Commissioner Sarnoff Nondepartmental account. Commissioner Regalado: -- a nondepartmental. Commissioner Spence -Jones: NDA. Commissioner Regalado: That's the piggyback. It's a nondepartmental. I don't know, Mr. Manager, but I really do think -- nondepartmental account -- but I really do think that we need to respect not their decision about the amount of money that was paid to the attorney. That is for them to resolve, for the City Attorney to counsel, not even us, because we don't even know how to start advising them on the issue of a contract with the attorney, but we need to respect and send a clear message to the voters ofMiami that in a city where we are cutting to the bone, we are supporting an agency that represents the people of the City ofMiami, but probably not any other agency that represents more the people ofMiami than one office that is the clearinghouse for complaints about what is people feel that is wrong in the City, and mind you, I don't even know what had been the rulings of the agency, but the fact that they are there is just a safeguard to the people ofMiami, so I will not support cutting their budget. Vice Chairman Sanchez: Are you proffering a motion to give them -- are you proffering anything? Commissioner Regalado: Well, I'm -- I -- do we approve their budget today -- Vice Chairman Sanchez: No. Commissioner Regalado: -- Mr. City Attorney? Pedro G. Hernandez (City Manager): No, you don't. Mr. Fernandez: No, you don't. It's -- Commissioner Regalado: Oh. Mr. Fernandez: -- a discussion item. Commissioner Regalado: It's a discussion item, so it's no motion, but -- Vice Chairman Sanchez: No, but we could reduce. Commissioner Regalado: -- well, we can -- the amount is 1,106, 561, right? That's the budget that is proposed Commissioner Spence -Jones: I thought it was -- City ofMiami Page 125 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: Is that correct? Ms. Shapiro: That's correct. Commissioner Spence -Jones: -- nine. Mr. De La Guardia: Correct. Commissioner Regalado: That's correct. Unidentified Speaker: No. Commissioner Spence -Jones: No. It's -- thought it was nine. Commissioner Sarnoff That's their proposed fiscal year '08 budget. Commissioner Regalado: Yeah. That's what it says here. Commissioner Sarnoff Right. Commissioner Regalado: And that is a cut of? Commissioner Sarnoff One hundred thousand. Ms. Shapiro: A hundred thousand dollars. Commissioner Regalado: A hundred thousand dollars. Mr. De La Guardia: Nine percent. Ms. Shapiro: It's nine percent. Commissioner Regalado: It's nine percent. Exactly what we did in our offices, nine percent. Ms. Shapiro: We were asked to cut 85 originally. We cut a hundred. I want -- Commissioner Regalado: So -- Ms. Shapiro: -- certainly, I think you all understand that we do this voluntarily. We get nothing for this, except the satisfaction of knowing -- Priscilla A. Thompson (City Clerk): I'm sorry. On the mike, please. Commissioner Spence -Jones: On the mike. Ms. Shapiro: I'm sorry. We get nothing from this, except the satisfaction of knowing -- Commissioner Spence -Jones: Serving the residents. Ms. Shapiro: -- that we're doing what the citizens ofMiami asked us to do. Commissioner Spence -Jones: Commissioner Regalado, are you proffering the $100, 000 cut? Is that what you're --? Commissioner Regalado: I'm supporting what they have supported, but I'm also requesting from City ofMiami Page 126 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 the Manager to resolve the situation of space -- Vice Chairman Sanchez: All right. Commissioner Regalado: -- which was defer -- Commissioner Sarnoff No. There is no resolution of space. Mr. De La Guardia: No. Vice Chairman Sanchez: There is none. Commissioner Sarnoff I mean, I've been working on this for two weeks, am I correct? IfI come back to you in two weeks, are you going to grow wings and give me space? Mr. Hernandez: Right. In essence -- Vice Chairman Sanchez: No. Mr. Hernandez: -- all the direction that need is to restore their $100, 000 that think we're off plus or minus. Ms. Shapiro: No, no. Commissioner Regalado: No, no. Vice Chairman Sanchez: No. Commissioner Regalado: They don't want -- Mr. Hernandez: No. Commissioner Regalado: -- their -- Ms. Shapiro: No -- Commissioner Regalado: -- $100, 000. Vice Chairman Sanchez: They want the space. Commissioner Regalado: They just don't want a deeper cut than $100, 000 -- Ms. Shapiro: -- and -- Commissioner Regalado: -- and this is my motion, to set their budget with the nine percent reduction that they all agree with it, and -- because -- Ms. Shapiro: -- that includes our new rent -- Commissioner Regalado: -- Mr. Manager -- Ms. Shapiro: -- Mr. City Manager. Commissioner Regalado: -- what happen -- City ofMiami Page 127 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Mr. Hernandez: Exactly. Commissioner Regalado: -- the whole thing began when Michael requested that they would reduce $200,000. Mr. Hernandez: I think had it right. I mean, they reduce 110 and we were asking for 210, right? Commissioner Sarnoff Right. Commissioner Regalado: Right -- Mr. De La Guardia: Excuse me. Commissioner Sarnoff That's about right. Mr. De La Guardia: What budget (UNINTET,TIGIBLE) asking (UNINTELLIGIBLE)? Commissioner Regalado: So I'm supporting -- my motion is supporting their proposal. Commissioner Spence -Jones: Second. I support that 100 percent, Commissioner Regalado. Mr. Hernandez: So, in essence, all need is the direction that you would like to have them restored to the -- Commissioner Sarnoff No. Commissioner Regalado: No, no, no. Commissioner Spence -Jones: No, no. Commissioner Regalado: The budget -- Ms. Shapiro: Please -- Commissioner Regalado: -- that is here -- Ms. Shapiro: -- we're not asking -- Commissioner Regalado: -- that's the one -- Ms. Shapiro: -- for the restoration of anything. We have submitted -- Mr. Hernandez: Well, maybe the difference is that we were asking for an additional 100 -- Commissioner Sarnoff That's correct. Ms. Shapiro: Right. Mr. Hernandez: -- that they are not -- Ms. Shapiro: That's right. Mr. Hernandez: -- supporting. City ofMiami Page 128 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Regalado: What it -- Ms. Shapiro: You're correct. Mr. De La Guardia: You're correct. Commissioner Regalado: -- show here -- Mr. De La Guardia: Right. Commissioner Regalado: -- is what they support. What it has here -- Mr. Hernandez: No. I understand. Commissioner Regalado: -- is what they support. Commissioner Sarnoff Yeah. Mr. Hernandez: Not a problem. Commissioner Regalado: OK. That's the motion. Commissioner Spence -Jones: Second, even though we're not voting, right? Chairman Gonzalez: No, we don't need a motion. Commissioner Spence -Jones: Right -- Commissioner Sarnoff We can vote. Commissioner Spence -Jones: -- but he just said that's the motion. Chairman Gonzalez: It's a discussion item. Commissioner Regalado: Oh, we can vote. I mean -- Mr. Fernandez: Well -- Commissioner Regalado: -- we can vote just to send a message -- Mr. Fernandez: -- you can vote -- Commissioner Regalado: -- to the Manager. Mr. Fernandez: -- so that you can give the Manager clear direction so that next budget hearing, when he comes, he brings a correct figure for your final passage. Vice Chairman Sanchez: All right. Roll call. Chairman Gonzalez: Roll call. Ms. Thompson: Roll call. Commissioner Sarnoff? Commissioner Sarnoff No. City ofMiami Page 129 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Ms. Thompson: Commissioner Spence -Jones? Commissioner Spence -Jones: Yes. Ms. Thompson: Vice Chairman Sanchez? Vice Chairman Sanchez: No. Ms. Thompson: Commissioner Regalado? Commissioner Regalado: Yes. Ms. Thompson: And then Chairman Gonzalez? Chairman Gonzalez: No. Ms. Thompson: Then that motion fails, 2/3. Vice Chairman Sanchez: All right. Listen, Mr. Chairman, ifI could be -- ifI could speak on the issue? Chairman Gonzalez: Yes. Vice Chairman Sanchez: Ms. Shapiro and everyone that's there with you, I understand your need, andl certainly don't question your commitment, devotion, and professionalism. You all do a great service to the City, but you know the situation that we're in. We have to cut, and other agencies that come in front of us that we've had to cut, so you know, based on what has been discussed here -- and look, it's getting late and we're tired, all right. I'm going to make this turn into like a little sense of humor here, OK? You have curtain number one and curtain number two. I suggest you go with the lowest curtain. Mr. De La Guardia: Commissioner, may I ask -- Vice Chairman Sanchez: It'll be curtain number one, and curtain number one is a reduction of $200, 000. So move. Chairman Gonzalez: All right. Mr. De La Guardia: -- may I -- Chairman Gonzalez: We have a motion -- Mr. De La Guardia: -- address --? Chairman Gonzalez: -- for the reduction of 200, 000. Is there a second? Commissioner Sarnoff Let me see ifI can make a friendly amendment to you, Commissioner -- Chairman Gonzalez: OK. Commissioner Sarnoff -- consider, because I did a little math work, and if they just finish out their budget with their attorney and then hire an attorney at $125, 000, they would only need a $50, 000 reduction, and they'd still be within budget. Vice Chairman Sanchez: So what's their total reduction? City ofMiami Page 130 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff Their total reduction then would be $150, 000. Vice Chairman Sanchez: Madam Chair, will you accept that? Mr. De La Guardia: On the issue of the attorney -- and I have to ask a question to Mr. Springs [sic] -- we have a contract. That contract can't be changed, so if -- Commissioner Sarnoff I know. Mr. De La Guardia: -- you're asking me to reduce the contract on the budget that we're proposing, it's impossible because he has -- Commissioner Sarnoff No, no, no, no, no. Vice Chairman Sanchez: No, no, no, no. Mr. De La Guardia: -- to get paid till January. Vice Chairman Sanchez: Listen, that's my -- Commissioner Sarnoff No. Vice Chairman Sanchez: -- motion. I'll amend it to 150. How's that, for the sake of fairness? It's been amended to 150; I accept their friendly amendment. Madam Clerk, if there's -- Chairman Gonzalez: All right. Vice Chairman Sanchez: -- no further discussion on the item, call the question. Ms. Thompson: We need a second, please. Chairman Gonzalez: There is a -- there was a motion -- Commissioner Sarnoff Second. Let me second it with the amendment -- Chairman Gonzalez: -- and there was a second -- Commissioner Sarnoff -- and he's accepted my amendment. Chairman Gonzalez: -- with an amendment. Commissioner Regalado: OK. Discussion. Chairman Gonzalez: Roll -- Commissioner Regalado: So, Mr. Manager, in that proposed reduction, which is going to cost us more, eventually, because they going to have to keep hiring private investigators, and that as you'll see -- and you'll see because there will be another budget amendment come next year, but anyway what about the space? Is this a different issue from the budget, the figure -- this figure, or is that include -- is that been include in the budget that we approving, the additional expense? Commissioner Sarnoff Let me try to explain this to you. If -- I did a computation. They could stay just where they are, increase their space, increase -- stay at 150 -- where are you, at 150 South Miami Avenue? You're in the old U.S. Attorney's space. Used to frequent that space all City ofMiami Page 131 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 the time. Ms. Shapiro: You know how luxurious it -- Commissioner Sarnoff It was for good reasons, not bad reasons -- and they could keep that space and increase their space, and at the end of -- and I've just done the computation -- the contract, they can then hire an attorney, I figure around $130, 000 and stay within budget. Ms. Shapiro: Including the fringe benefits? Mr. De La Guardia: Including the taxes and pension and everything else? Ms. Shapiro: Including the taxes, pension, and everything else? Mr. De La Guardia: That's going to shoot up to 170. Commissioner Sarnoff You know, I don't know if you're going to pay your lawyer with a car, and I don't know if you're going to give him a cell phone, and I don't know if you're going to give him a pension. Unidentified Speaker: Come on. Commissioner Sarnoff You know -- come on? I'm a private attorney. I don't get a pension. I don't get a car allowance. Chairman Gonzalez: That's right. Commissioner Sarnoff I mean, you're saying "come on"? Unidentified Speaker: That's not reasonable, what you're -- Chairman Gonzalez: I'll call the question, Madam City -- Commissioner Regalado: Anyway, just wanted to make sure. Commissioner Sarnoff has done the number and, apparently -- Vice Chairman Sanchez: Call the question. Commissioner Regalado: -- he understands about the space. My concern is that if they do not have the space, they will not be able to conduct the business, eventually, and they going to have to start looking for other places, so I just wanted to understand if the new space was out of the -- that budget that you are proposing? Mr. Hernandez: Yes, it is. It's coming out of that budget. Commissioner Sarnoff Budget would stay within it. Commissioner Regalado: It would stay within. Chairman Gonzalez: All right. Madam City Clerk, roll call, please. Ms. Thompson: Roll call. Commissioner Regalado? Commissioner Regalado: No. City ofMiami Page 132 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Ms. Thompson: Commissioner Spence -Jones? Commissioner Spence -Jones: No. Ms. Thompson: Commissioner Sarnoff? Commissioner Sarnoff Yes. Ms. Thompson: Vice Chairman Sanchez? Vice Chairman Sanchez: With a tear in my eye, yes. Ms. Thompson: Then Chairman Gonzalez? Chairman Gonzalez: Yes. Ms. Thompson: The motion passes, 3/2. Chairman Gonzalez: PH.17, Liberty City Trust. Mr. De La Guardia: Mr. Chairman, may I make a closing remark? Chairman Gonzalez: Let's move on. Mr. De La Guardia: May I make a closing remark? Chairman Gonzalez: Pardon me? Mr. De La Guardia: May I make a closing remark? Chairman Gonzalez: Yes, go ahead. Mr. De La Guardia: On our panel, we have three to five attorneys. I've been an attorney for 12 years. We've dealt with the FTAA (Free Trade Area of the Americas), and we'll probably deal with other events similar to that. Every time I've had a concern as to which direction to take, whether to subpoena the police chief to subpoena whomever, the only person that has settled my concerns or any of the other panel members -- attorney's concern has been our legal representative. As a twelve-year lawyer, I am not going to look to a seven-year lawyer and say I feel comfortable with what you're telling me. Expertise comes with experience; experience comes with time. Chairman Gonzalez: Good. Mr. De La Guardia: I support -- our panel supports our attorney, even if it costs us $50, 000 more than what you want to pay him. We support him 100 percent. Taking him away from us gives us a lux -- takes away a luxury that we have, and that is of not being in the papers for making a mistake. He gives us that comfort. Regardless of what past there's been, he gives us that comfort, and that's why the panel is never in the media for negative reasons. If we're going to be there, we're going to be there because we do what's supposed to be done, and a lot of times, it's thanks to that experience. Thankyou. Chairman Gonzalez: All right. Thank you. Commissioner Spence -Jones: Thankyou. City ofMiami Page 133 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: Have a good day -- good evening. [Later...] Chairman Gonzalez: You know what the problem is? Excuse me for interrupting you for a minute. Do you know what the problem has been here? Let me tell you what the problem has been here, OK, and I'm getting a little bit fed up, and you better be prepare for me because, you know, it's my time to speak, OK. Vice Chairman Sanchez: You have the floor, Mr. Chair. Chairman Gonzalez: Yeah. The problem is that every single department and every single board every year they find an excuse and they find a way to come here and ask for more money -- Commissioner Sarnoff Right. Chairman Gonzalez: -- and more money and more money and more money, OK, and they are not use of cutting. I remember one year these two Commissioners, Commissioner Regalado and Commissioner Sanchez, with other Commissioners, were here until 4 a.m., andl was watching them at home, 4 a.m., begging from every department manager to cut their budget ten percent, and they wouldn't do it. Begging every single agency to cut their budgets ten percent, and they couldn't find where to cut ten percent. Vice Chairman Sanchez: And we started at 10 -- 7. Chairman Gonzalez: -- and as you said, this is reality. Next year we're going to get hit again, and it's going to get worse, and it's going to get worse, and it's going to get worse. I work for an agency in Allapattah Business Development for 14 years, and it took me 10 years to make $48, 000 as an executive director. Commissioner Sarnoff There you go. Chairman Gonzalez: That agency today -- we have Model City Trust that has been funded almost $600, 000 every single year from the general fund. I have never ask this Administration to fund that agency one penny from the general fund. Every single year they have to do over 150 facades just to cover part of their salaries, and their salaries are $27, 000, $25, 000, $30, 000 a year. Executive director makes $40, 000 a year. They have no pension. They have no City benefits. They have none of that, OK. They build housing, and they build housing at cost. They don't make a penny on the housing that -- the houses that they build. You saw them here today begging for a grant because they couldn't afford to pay the construction. Well, Mr. Manager, I'm asking you -- where is Larry Spring? -- to put in the budget $150, 000 for housing support for Allapattah Business Development so they can continue to build housing, because they're not going to be building housing for zero money to make no profits and to just to work for, you know, the heck of it, and then end up not even being able to complete their projects. You know, enough is enough, because everyone here has a problem; nobody can cut their budgets; everybody is, you know -- they're crying. They can't make a living. They -- you know, they're poor. What happen? I mean, you know. What's the matter? Is it a lot for some people and less for other people? And some people deserve everything and others deserve nothing? No, not in my book. Commissioner Sarnoff You know -- Chairman Gonzalez: And, Larry, you andl have been talking about this issue for a long, long time. Commissioner Spence -Jones: So, Mr. Chairman, are we speaking about -- City ofMiami Page 134 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Chairman Gonzalez: OK? Commissioner Spence -Jones: -- the last people that just came up to speak? Is that what you're speaking in reference to? Chairman Gonzalez: Pardon me? Commissioner Spence -Jones: Are you speaking if reference to the last -- Chairman Gonzalez: In reference to them -- Commissioner Spence -Jones: OK. Chairman Gonzalez: -- yeah. Commissioner Spence -Jones: This doesn't have anything to do with --? Chairman Gonzalez: No, nothing to do with -- Commissioner Spence -Jones: OK. Chairman Gonzalez: Liberty City Trust. Commissioner Spence -Jones: All right. Chairman Gonzalez: Never had any problems with Liberty City Trust -- Commissioner Spence -Jones: Because they have reduced on their budget -- Chairman Gonzalez: -- you know. Commissioner Spence -Jones: -- and I'm sure you toured with me in the district and you see in a year's time how much we've been able to get accomplished just in a year's time, and as a matter of fact, even their salaries, compared to other trusts or committees are much lower than any of the other ones, so I just want to allow them the opportunity -- because it seemed as though that might have been addressed to them -- Chairman Gonzalez: Let me tell you a little more. Commissioner Spence -Jones: -- so I wanted to make sure they understood that he's -- Chairman Gonzalez: You found out today, because I told you that the employees atAllapattah Business Development were working without a salary for almost two months, because their CPA (Certified Public Accountant) could not deliver their audit, and because they were not able to deliver their audit on time, the City suspended their check. Guess what? The chairman of the -- of the agency had to advance some money to pay the salary of the employees, and they were working without getting paid, OK? Commissioner Sarnoff You know, I just want to make an observation. I've been at this for ten months. I still consider myself a private -sector guy. I've been a lawyer for 21 years. I don't have a pension. I don't have a 401kplan. Chairman Gonzalez: Right. City ofMiami Page 135 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Sarnoff I don't get a car allowance. I pay my own cell phone. I come here to this chamber, andl am amazed at what hear. I'm amazed at the salaries hear lawyers saying that they command, and how dare you not give me a pension. Well, I don't understand that, and as far as I'm concerned, District 2 -- and he's the only guy that gets to say he doesn't take -- runs this City, and all keep on hearing is I can't, I can't, I won't, I won't. Well, you know what? District 2 needs tax relief because it pays essentially everyone else, and I'm going to sit up here and I'm going to give tax relief and it's going to be more than you're giving, so you better factor that in, and anybody that gets up here and starts talking about I can't, they should leave the keys to their office on your desk, Mr. City Manager -- Chairman Gonzalez: Yeah. Commissioner Sarnoff -- because we should find somebody who can. Commissioner Spence -Jones: OK. Mr. Chairman -- Mr. Hernandez: Mr. Chairman, if -- Commissioner Spence -Jones: -- can we allow for them --? Mr. Hernandez: Commissioner, ifI may something critical? Commissioner Spence -Jones: Sure. Mr. Hernandez: The item you just mentioned, Mr. Chairman, is in the budget. Commissioner Spence -Jones: It's in the budget. Mr. Hernandez: For the record. Commissioner Regalado: It's what? Chairman Gonzalez: It's in the budget. Commissioner Sarnoff It's in the budget. Commissioner Spence -Jones: It's in the budget. BH.17 07-01105 DISCUSSION ITEM Liberty City A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A Community RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), Revitalization Trust APPROVING THE LIBERTY CITY COMMUNITY REVITALIZATION PROPOSED BUDGET AND ANNUAL PLAN, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008. 07-01105 Legislation.pdf 07-01105 Summary Form.pdf 07-01105 Letter.pdf 07-01105 Pre-Legislation.pdf 07-01105 Proposed Budget.pdf 07-01105 Proposed Budget Operational Costspdf.pdf DISCUSSED Chairman Gonzalez: Yes. City ofMiami Page 136 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 David Chiverton: Thank you, Mr. Chairman. David Chiverton, Liberty City Trust. I have today my colleague also on the board, Mr. -- [Later..] Commissioner Spence -Jones: Mr. Chairman, can we allow for the Trust to -- so they can leave? Chairman Gonzalez: Go ahead, sir -- Mr. Chiverton: Thank you, Mr. Chairman. Chairman Gonzalez: -- and I'm sorry for interrupting you. Mr. Chiverton: David Chiverton, board of directors for the Liberty City Revitalization Trust. I have with me today my colleague, Mr. Roy Hardemon and our executive director, Ms. Elaine Black. To make it very simple, we were asked to make a reduction to our budget, and we've done so. I think it equates to just over 20 percent, and we appreciate the support -- Chairman Gonzalez: There you are. Mr. Chiverton: -- that you've given, and we will continue to make every effort to continue to produce the necessary housing for the district as needed. Commissioner Spence -Jones: And l just want to add that I'm very, very -- Chairman Gonzalez: There you are. They're cutting their budget 20 percent. Commissioner Spence -Jones: -- I am very, very happy and thankful to have you guys there. Things are moving, projects are being built, people are moving into them, and we're also bringing back income -- program income for the houses that are being sold, so I'm very thankful and blessed to have you guys there. Chairman Gonzalez: We thank you, and we commend you for the job that you're doing. Finally, that area is seeing some progress and change, a good change, so I really -- Mr. Chiverton: We appreciate -- Chairman Gonzalez: -- commend you for the job that you're doing. Mr. Chiverton: -- the assistance -- Commissioner Spence -Jones: Thank you, Mr. Chairman. Mr. Chiverton: -- and thank you. Commissioner Spence -Jones: I truly appreciate it. Mr. Chiverton: Thank you. BH.18 07-01106 DISCUSSION ITEM General Sanitation A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A Employees RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), Retirement Trust APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE GENERAL EMPLOYEES' & SANITATION EMPLOYEES' RETIREMENT TRUST ("GESE RETIREMENT TRUST FUND"), FOR THE FISCAL YEAR COMMENCING City ofMiami Page 137 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008, IN THE AMOUNT NOT TO EXCEED $2,884,956, EXCLUDING NORMAL COST, TO PROVIDE FOR THE ADMINISTRATION OF THE GESE RETIREMENT TRUST FUND. 07-01106 Legislation.pdf 07-01106 Exhibit.pdf 07-01106 Exhibit 2.pdf 07-01106 Cover Memo.pdf 07-01106 Memo.pdf DISCUSSED Chairman Gonzalez: All right. BH.18. Charlie, where are you? Charlie Cox: I'm here. Chairman Gonzalez: You're still here, Charlie. Ron Silver: I will not bring Charlie up. Chairman Gonzalez: Senator. Mr. Silver: Good evening. Chairman Gonzalez: How are you, sir? Mr. Silver: I am wonderful, and it's a pleasure -- Chairman Gonzalez: Good to see you here. Mr. Silver: -- to be here. I just want to tell Marc that -- well, this is your first one, and this is about my 30th one that I've attended, and they all seem to go about the same time. Commissioner Regalado: You're early today. Mr. Silver: Yeah, I was here earlier, wasn't it? I'm Ron Silver, and I'm the attorney for the City ofMiami General Employees and Sanitation Employees Retirement Trust. We have our budget before you. If you want detail, I have the whole staff here to answer any questions you might have, but due to the lateness of the hour, I'll just -- Chairman Gonzalez: Anyone from the public -- Mr. Silver: -- present the budget. Chairman Gonzalez: -- that wants to speak on this item, please come forward to be recognized. Seeing none, hearing none, the public hearing is closed. Mr. City Attorney, this is just a report, right? Jorge L. Fernandez (City Attorney): This is just a discussion, right. Chairman Gonzalez: Discussion. Any questions from the Commission? Thank you, sir. Have a good night. BH.19 07-01107 DISCUSSION ITEM City ofMiami Page 138 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 General Sanitation Employees Retirement Trust BH.20 07-01108 Community Redevelopment Agency (CRA) A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET FOR THE GENERAL EMPLOYEES' & SANITATION EMPLOYEES' EXCESS BENEFIT PLAN ("GESE EXCESS BENEFIT PLAN"), FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2007, AND ENDING SEPTEMBER 30, 2008, IN THE AMOUNT NOT TO EXCEED $61,479, EXCLUDING THE ACTUARIALLY DETERMINED ANNUAL BENEFIT PAYMENT, TO PROVIDE FOR THE ADMINISTRATION OF THE GESE EXCESS BENEFIT PLAN. 07-01107 Legislation.pdf 07-01107 Exhibit.pdf 07-01107 Exhibit 2.pdf 07-01107 Cover Memo.pdf 07-01107 Memo.pdf DISCUSSED Ron Silver: I'm on item 19 also, so I'll just stay up here for that. Chairman Gonzalez: OK, so 19. Anyone from the public on BH.19 that wants to address the Commission, please come forward to be recognized. Seeing none, hearing none, the public hearing is closed. Any questions from the Commission? No questions. Thank you, sir. Mr. Silver: Thank you very much. Pleasure. Chairman Gonzalez: Have a good night. Mr. Silver: Thank you. Chairman Gonzalez: Charlie, take care. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ACCEPTING AND ADOPTING THE BUDGETS OF THE SOUTHEAST OVERTOWN/PARK WEST, OMNI REDEVELOPMENT DISTRICT, AND MIDTOWN COMMUNITY REDEVELOPMENT AGENCIES, ATTACHED AND INCORPORATED, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008, AS APPROVED BY THEIR RESPECTIVE BOARD OF COMMISSIONERS. 07-01108 Legislation.pdf 07-01108 Exhibit.pdf 07-01108 Exhibit 2.pdf 07-01108 Exhibit 3.pdf 07-01108 Cover Memo.pdf 07-01108 Summary Form.pdf Motion by Commissioner Spence -Jones, seconded by Commissioner Regalado, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Sarnoff, Regalado and Spence -Jones Absent: 1 - Commissioner Sanchez R-07-0515 Chairman Gonzalez: BH.20. City ofMiami Page 139 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commissioner Spence -Jones: This is the last one, Mr. Chairman? Chairman Gonzalez: Acceptance and adoption of the CRA (Community Redevelopment Agency), yes. Commissioner Spence -Jones: Is this the last one? Chairman Gonzalez: Last one. James Villacorta: Jim Villacorta, executive director of the Southeast Overtown, Omni and Midtown Community Redevelopment Agencies. Commissioner Sarnoff How much do you make? No, don't answer that. That's all right. Mr. Villacorta: A lot less than some of the other attorneys here, so -- Commissioner Sarnoff I actually know what you make -- Mr. Villacorta: OK. Commissioner Sarnoff -- and you were one of the guys -- and how long have you been doing it? Chairman Gonzalez: This is a resolution -- Mr. Villacorta: Seven years with the City. Chairman Gonzalez: -- Mr. City Attorney? Jorge L. Fernandez (City Attorney): It is a resolution -- Commissioner Sarnoff Seven years. Mr. Fernandez: -- you need to adopt. Mr. Villacorta: Yes. Commissioner Sarnoff Do you think you could answer the questions -- Commissioner Spence -Jones: So we have to vote on it? Commissioner Sarnoff -- of CIP (Capital Improvement Program) ? Mr. Villacorta: I wouldn't -- Commissioner Sarnoff I think you could, Jim. Mr. Villacorta: I would work hard to do that, ifI -- Chairman Gonzalez: All right. Anyone -- Mr. Villacorta: -- if that was my job. Chairman Gonzalez: -- from the public on BH.20? Seeing none, hearing none, everybody went to sleep. Everybody already went home. All right. Public hearing is closed; comes back to the City ofMiami Page 140 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 Commission. It's a resolution. Mr. Fernandez: It's actually three resolutions, one for each of the three CRAs. Chairman Gonzalez: OK. Three resolutions. Mr. Villacorta: And each CRA is operating within the TIF (Tax Increment Fund) funds that are allocated to it, and the interlocal agreements provide that 20 percent may be used for administration, and we operate at about six percent. Commissioner Regalado: In your budget, are you allocating a new position for next year budget? Mr. Villacorta: We have some unfulfilled positions, but we weren't planning on -- Commissioner Regalado: So your -- Mr. Villacorta: -- adding any new ones. Though, Crosswinds, when it starts, provides that they must fund a position to oversee the construction -- Commissioner Regalado: Well -- Mr. Villacorta: -- that Crosswinds performs. Commissioner Regalado: -- I thought that you need to hire an election specialist. Commissioner Spence -Jones: What? Commissioner Regalado: Election specialist. Chairman Gonzalez: Election specialist. Commissioner Sarnoff This is going to be a joke. This is going to be good. Commissioner Regalado: Because -- Commissioner Spence -Jones: Oh, I know what you're going to say. Commissioner Regalado: -- of the Supreme Court ruling. Mr. Villacorta: Yes. It has -- Commissioner Regalado: Let me ask you one question because you are an attorney and I'm curious about that. In case of any bond issue from any of the CRA, is that a city or a county election? Mr. Villacorta: It's unclear at this time, and that's a question that's making the rounds of the legal community. In the past, the only CRA to issue bonds was if Southeast Overtown/Park West Community Redevelopment Agency, and they did not issue the bonds themselves. The City issued the bonds, and the TIF was pledged, so that would further muddle the issue because the Florida Constitution says the taxing authority that's issuing the bonds and if we were to proceed in that manner where the City issued the bonds, arguably, the City would be voting, but it's up in the air, andl understand that the attorneys are going to ask the Supreme Court to clam that decision. Chairman Gonzalez: All right. It's a resolution of the Miami City Commission with attachments, City ofMiami Page 141 Printed on 10/1/2007 City Commission Meeting Minutes September 11, 2007 accepting and adopting the budget of Southeast Overtown/Park West Omni Redevelopment District and Midtown Community Redevelopment Agencies, attached and incorporated for the fiscal year commencing on October 1, 2007 and ending September 30, 2008, as approved by their respective boards and -- of Commissioners. Is there a motion? Commissioner Spence -Jones: So move. Chairman Gonzalez: We have a motion. Is there a second? Commissioner Regalado: But it's only one motion for Overtown/Park West, right? Mr. Fernandez: Yes. That's fine. Chairman Gonzalez: Yeah, that's fine. Mr. Fernandez: One motion can cover the three CRAs. Chairman Gonzalez: Can cover the three. Commissioner Regalado: Oh, OK. Second. Chairman Gonzalez: We have a second. All in favor, say "aye." The Commission (Collectively): Aye. Chairman Gonzalez: That concludes the budget hearing. All of you have a -- Commissioner Spence -Jones: Thank you, Mr. Chairman, for getting us out before 12 o'clock at night. Chairman Gonzalez: -- good night. Commissioner Spence -Jones: You are to be commended. Chairman Gonzalez: Thank you. City ofMiami Page 142 Printed on 10/1/2007