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HomeMy WebLinkAboutCC 2009-09-10 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Thursday, September 10, 2009 5:05 PM FIRST BUDGET HEARING City Hall Commission Chambers City Commission Manuel A. Diaz, Mayor Joe Sanchez, Chair Michelle Spence -Jones, Vice -Chair Angel Gonzalez, Commissioner District One Marc David Sarnoff, Commissioner District Two Tomas Regalado, Commissioner District Four Pedro G. Hernandez, City Manager Julie 0 Bru, City Attorney Priscilla A. Thompson, City Clerk City Commission Meeting Minutes September 10, 2009 5:05 P.M. CONTENTS BH-FIRST BUDGET PUBLIC HEARING TO DISCUSS FISCAL YEAR YEAR 2009-2010 TENTATIVE BUDGET BEGINNING AT 5:05 P.M. BH.1 THROUGH BH.9 FIRST BUDGET HEARING Present: Commissioner Gonzalez, Commissioner Sarnoff, Chair Sanchez, Commissioner Regalado and Vice Chair Spence -Jones On the loth day of September 2009, 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 Chair Sanchez at 5:08 p.m., recessed at 9:58 p.m., reconvened at 10: 41 p.m., and adjourned at 12:00 a.m. ALSO PRESENT: Julie O. Bru, City Attorney Pedro G. Hernandez, City Manager Priscilla A. Thompson, City Clerk Pamela E. Burns, Assistant City Clerk ORDER OF THE DAY Chair Sanchez: Now, ladies and gentlemen, we will go into the properly advertised budget hearing. It is our first budget hearing. All those that will be addressing this Commission -- and you will be afforded an opportunity to address this Commission -- please sign with the City Clerk so we could have a record of you speaking in front of this Commission. And that way, we could run this meeting as smoothly as possible. Now what I'd like to do before we move forward is, Madam Attorney, I want you to read the procedures into the record as to what we need to accomplish here today to follow rules and regulations. So you're recognized for the record. Julie O. Bru (City Attorney): Thank you, Mr. Chairman. And good evening, fellow Commissioners and members of the public. We're here today to set -- to fix the millage rate and to adopt a tentative budget, also a proposed millage rate. This is the first public hearing. There will be a second public hearing, a final public hearing. Today, the order of business will be the Administration will discuss the percentage increase in the millage over the rollback rate necessary to fund the budget, if any, and the specific purposes for which ad valorem tax revenues are being increased, if any. During the discussion, the Commission will hear comments regarding the proposed increase and explain the reasons for the proposed increase over the rollback rate, if that is the case. And then the general public shall be allowed to speak and ask questions prior to the adoption of the tentative budget and the tentative millage rate. The Commission must adopt the tentative millage rate -- Chair Sanchez: Millage first. Ms. Bru: -- prior to adopting the tentative budget. Chair Sanchez: All right. That takes care of that. City ofMiami Page 2 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 BH.1 09-00915 Office of Strategic Planning, Budgeting, and Performance DISCUSSION ITEM FIRST PUBLIC HEARING TO DISCUSS THE PROPOSED MILLAGE RATE AND TENTATIVE BUDGET FOR FISCAL YEAR 2009-2010. THE PROPOSED GENERAL OPERATING MILLAGE RATE OF 7.6740 FOR THE CITY OF MIAMI FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30, 2010 IS 14.66%LOWER THAN ROLLED -BACK RATE OF 8.9918. 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 09-00915 Millage Rate.pdf 09-00915-Submittal-Miami River Commission.pdf 09-00915-Submittal- Charlie Cox 1.pdf 09-00915-Submittal- Charlie Cox 2.pdf 09-00915-Submittal-Joe Simmons.pdf 09-00915-Submittal-AI West.pdf 09-00915-Submittal-Hattie Willis.pdf 09-00915-Submittal-FY 2010 Book Proposed Budget.pdf DISCUSSED Direction by Vice Chair Spence -Jones to the Administration to continue to work with AFSCME Local 1907 on an incentive program for employees in the Deferred Retirement Option Program (DROP) to separate from the City in order to reduce the number of employees to be laid off in the proposed budget, and to come back with a proposed resolution at the second budget hearing currently scheduled for September 24, 2009. Chair Sanchez: At this time, how do you want to handle it? Do you want to handle the presentation or do we recognize the Mayor? Mr. Mayor, you're recognized for the record. Mayor Manuel A. Diaz: Good afternoon, fellow residents, Mr. Chairman, Madam Vice Chairman [sic], Commissioners, and fellow City employees. This is the last time that I will stand before you to deliver a budget address, and this is clearly the most difficult one yet. As I have done during the past eight years, preparing the budget has not only included City staff -- and I really want to commend our Manager, Larry Spring, Mike Boudreaux, and all the department directors for their work to date -- but we have also included all of you, making this a truly collaborative effort, and I really appreciate the many hours that you have all devoted to this process so far and the hours yet to be devoted. We are all witness to an economic perfect storm, an economic meltdown, the worst since the Great Depression, leading to significant declines in housing values, a record number of foreclosures, the highest unemployment rate in decades, and substantial drops in consumer confidence and consumer spending. Understanding where we are today is very simple. All we need to do is look at a handful of major items of revenue and expenses. On the revenue side, we should expect to collect $20 million less from real estate City ofMiami Page 3 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 taxes, $5 million less in state revenue sharing, $5.5 million less in interest earnings, and over $4 million less from charges related to building inspections and permits. On the expense side, we have to pay $35 million additional in pension contributions. We have additional -- an additional $31 million in salary increases and special pays, and about $4 million in additional property and health insurance costs. So it's really very simple. We get $35 million less, but we have to pay $70 million more. Together with a few other minor items, this means that we face a shortfall of $118 million, and how we address this is our challenge today and in the weeks to come. This is reality. We do not have the luxury of politicizing this issue. As elected officials, we have a legal obligation to balance our budget and we must balance it keeping in view the priorities that we have maintained during the last eight years. We began with a vision to refocus government with four principle goals: Reducing the tax burden on our citizenry through responsible tax cuts, investing in our neighborhoods and in our people, safeguarding the City's future fiscal solvency, and ensuring the delivery of services designed to enhance our quality of life. In the last eight years, we have achieve all of this. We have reduced the tax burden, cutting taxes and reducing our total millage rate by almost 20 percent, just under a full two mills, and saving the taxpayers ofMiami almost $350 million during this period. You can take pride knowing that homeowners in 2010 in the City ofMiami will be paying less taxes than they were in 2001. We spent our money wisely to rebuild our neighborhoods and our city through an unprecedented $2 billion in our infrastructure. We have fixed our streets and sidewalks, made our parks gathering places of community and urban life, helped our neighborhoods in Flagami and Grapeland through flood mitigation and invested over $100 million in public safety investments, ensuring that our first responders continue to save lives and keep our neighborhoods safe. We have also been responsible, fighting hard to safeguard the City's future fiscal solvency by maintaining healthy reserves. It is testament to the leadership of this Commission that our reserves continue to approximately 20 percent of our recurring revenues. We have all worked together to craft balanced budgets guided by these priorities, and this year it should be no different. Providing additional tax relief by maintaining our current millage rate was our first goal. A flat millage rate should, on average, generate approximately $100 in tax savings for our residential homeowners. To preserve our budget reserves, the proposed budget assumes no use of fund balance whatsoever. And finally, our budget cuts are designed to minimize the impact on the delivery of services and the quality of life of our residents, the quality of life they have come to expect. However, filling a budget gap of $118 million of a $500 million budget, close to 20 percent, is not an easy task. It is made even more difficult when you consider that personnel expenses account for 76 percent of our total budget, and this remains in spite of the fact that in the last two years, you may all remember that we had to achieve $100 million in budget cuts as well. And notwithstanding this decreasing amount, we had no choice but to once again look at our department budgets to identify additional savings. We fairly quickly discarded the 10 and 15 percent reduction mandates and instead what you have in front of you is a 47 percent cut in Zoning, 39 percent cut in the Manager's Office, 37 percent cut in Planning, 35 percent in Finance, 33 percent in GSA (General Services Administration) and Communications, 30 percent in Building, and the list goes on and on. What you have before you is a bare bones, no frills budget. We looked at each and every departmental line item, everything, and I mean everything was on the table. We achieved significant savings through the elimination of 572 total positions, which represent 16 percent of our workforce. Our total headcount will now be 3,408, compared to our headcount in 2002, which was 3,295, which is a mere 3.4 percent increase in an eight year period. We also achieved significant savings through tiered salary reductions from our nonunion personnel, reductions that ranged from 15 percent to 6 percent. It is important to note that this group represents only 14 percent of our workforce and is contributing $11 million in savings, or 22 percent of the original nonunion employee budget. Unfortunately, these very steep and painful cuts will only generate savings of approximately $90 million. So we still need to find another 20 million -- $28 million if we are to comply with our legal requirement to balance our budget. Our choices are really extremely limited, but also really quite simple. You either increase revenues by raising the millage rate to the full amount that you authorized in July and by tapping into our reserves, or you need to identify additional savings. We also know that we have asked our unions to help us fill the gap by accepting the same salary tiered reductions of City ofMiami Page 4 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 nonunion employees and by agreeing to the elimination of the across-the-board anniversary and longevity increases. We are not asking of the unions anything different than is being asked of the people we serve who work in the public and private sectors. Regrettably, the unions' failure to cooperate leaves us with very little choice but to resort to additional layoffs. But before I expand on this issue, it is important that we look not too far ahead to next year. What will you and our new mayor likely face during next September's budget hearing? It is not unreasonable to assume that we will face an additional 50 to $60 million funding gap above this year's funding gap. Keep in mind that the City experienced a 16 percent decrease in assessed values last year, but realized only a 6 percent decline because of $3.6 billion in new construction. I don't think we're going to repeat the same next year. This 10 percent decline, coupled with further declining values, could mean an additional decrease of somewhere in the range of $30 million in tax revenues for you for fiscal 2011. Now let's look at our pensions. Many of us, I'm sure, are pleased that the stock market seems to have leveled off somewhat. Last September 30, which is our threshold date, the market took a significant nosedive, and this is responsible in part for our increased pension contribution this year. However, as steep as that decline was, the Dow Jones closed on that date above 10,500. Today, the Dow Jones is hovering around 9,500, a drop of another 10 percent over last year's drop. And I think most of us will probably agree that it is highly unlikely that this difference will be made up before the end of this month. This additional 10 percent could represent an additional pension contribution of between 15 and 20 million above and beyond this year's pension contribution. If union employees maintain the same salary benefits structure as they have this year, this would represent approximately another $13 million. So what sort of number are you looking at next year? Is it 150 million? Is it 175 million? With each passing year, the options become less and less until you are totally out of options. What will you do next year? You can look at additional layoffs. You can increase revenues by raising taxes. You can increase fees, create new fees, perhaps even bring back some old fees that were created during the fiscal crisis of the '90s, such as, for example, the fire fee. You could begin to substantially outsource City services. You may want to consider privatizing City departments. You can review the extent of services that we deliver today in our parks and other departments, and you can also look and consider selling off assets. In other words, you will pretty much find yourself back in the '90s, a city where people will not invest, a city where people will not want to open a business or move to. And the progress that we have made will wither away. Or we can begin to do something today. There are those who suggest that I may be exaggerating, that I am presenting a negative picture to elicit union concessions. Frankly, I think these individuals are in complete denial. Just ask any of your constituents if they think that we're going through very, very difficult economic times. To achieve a balanced budget today and beyond is going to require a great deal of courage and leadership, the political will to make the tough choices, and the ability to be willing to make the shared sacrifices, shared sacrifices necessary to keep our city strong, and we must in that process address the escalating costs of government. Our constituents are outraged about the salaries and benefits received by our employees, and it is easy to understand why. We need to fix our pension system. It is simply unsustainable. I applaud that Commissioner Sarnoff -- I just heard about your motion regarding Gates. The City has to get under the cloud -- get ftom under the cloud of Gates. Our predecessors were absolutely wrong for their malfeasance that prompted this class action lawsuit. The City had an absolute obligation, legal and moral, to make the pensions funds whole for the money that was misdirected. But it is inconceivable to me and a huge burden on the taxpayers we represent to continue to pay the steep price for the mistake of decades past. The wrong has been remedied, the intent fulfilled. The times and the era we live in are substantially different ftom the '70s and the '80s. Our pension fund, like all others, should be subject to market conditions and the actuarial analysis of our respective actuaries, not the lifelong supervision of a court, a judicial intervention that prevents our city from managing and adjusting to good times and bad times. These matters should solely exist within the purview of our collective bargaining agreements and not in a court. I strongly agree and support the recommendations of the City's Finance Committee, and I know that they will be making a presentation this afternoon as well. We should change our current cost of living, COLA (Cost of Living Allowance), structure in our pension plan. It is simply unsustainable. The City will never catch up with its obligation to fully fund City ofMiami Page 5 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 our pensions. Our unfunded liability will continue to be a moving target and one which will continue to increase our annual obligations for time and time to come. We should end define benefit pensions for new employees or enroll them in the state retirement pension system. Employees should be required to contribute additional sums into our retirement plans. We should eliminate the elected officers' retirement fund for elected officials elected for the first time in fiscal year 210 [sic] and beyond. Retirement ages and benefit caps should be matched to what the private sector -- to what is most common in the private sector. Affecting our pension system, though, is also our current operations and our salaries, special pays, cost of living increases, and other benefits. The increase in our pension obligation for fiscal year 2010 is not solely due to the volatility of the market. It is also a result of our salary and benefits structure. We need to get our salaries under control. The average annual salary of 133 fire lieutenants is $150, 000 a year, not including overtime, which is estimated to be approximately another 13,000 per person. The total cost of this to the taxpayers ofMiami is $21.5 million. The annual average salary of Fire executives is $243, 000, not including overtime for chief fire officers -- there are 15 of those -- estimated at 26,000 per year; and fire captains -- there are 61 of those -- estimated at 29,000 per year. There are nine Fire employees who make more than the City Manager. There are 47 Fire employees that have a higher salary than the Mayor of the City. And there are 65 Fire employees, or 10 percent of the entire department, that make more than our CFO (Chief Financial Officer). Our Fire Department also has 73 percent of our employees who make in excess of $300, 000; 82 percent of our employees who make between 200 and 300,000; 26 percent of our employees who make between 200 and 100,000; and just and only 22 firefighters who make less than 100, 000. Fifty percent of our employees make more than $100, 000 per year. And again, let me remind you of the significant impact of these salaries on our long-term pension obligations. You also need to look at how we arrive at salary ranges for non -sworn personnel. An administrative assistant, or a secretary, may be assigned a salary range of between 43 and $75, 000. In other words, if that person stays around long enough, even if they are never promoted, even if they are never given greater responsibilities, they can retire from the City at the high end of that range, which, by the way, gets adjusted upwards on a fairly regular basis, especially every time we sign a new collective bargaining agreement. This practice would never be tolerated in the private sector. And finally, you should also look at other areas, such as accrued benefits, compensatory time, and special pays. Our employees enjoy benefits that most taxpayers, the people we represent, would only dream of. Now it is unfortunate that some will likely view this debate as mean -spirited or adversarial. The fact is nothing could be further from the truth. These decisions have to be made not because we're not proud of our employees, not because we don't appreciate the great work that they do, not because we do not highly respect the courage and the tenacity of our first responders. In -- during these difficult times, the last thing I want and I'm sure the last thing you want is to add our employees to the ranks of the unemployed. But we must also deal with reality. The City, the taxpayers of our city, cannot afford and will not be able to afford our current cost structure. If we all collectively love our city and wish to see it prosper for years to come, if we all collectively want to keep the family together, avert layoffs, and protect and save jobs, then these are the actions that we must take today and for the future. And these are the actions that we must take in order to protect and deliver on the promise of our pensions, not just for our existing retirees, but for those who have only recently joined our city. Sacrifices must be made. The question we have to answer is who should make these sacrifices. Should it be those whose salaries and benefits are paid by the public, or should it be those same people who pay our salaries and who, today, are hurting economically, losing their jobs and homes or in fear of losing their jobs and homes, and by the way, also taking salary cuts? Today, we must all decide does the City serve the needs of the people or do the people serve the needs of the City. For me, the choice is very clear. The reality people are facing today does not mirror the way government is acting here. This has to end. We cannot in good conscience ask people to give us more so that we can pay ourselves more. This is flat wrong. And it's up to all of us to fix it. I would close with a statement that I made in September 2005, as I delivered my budget address for fiscal year 2006. We have been blessed by unprecedented growth, but we cannot, nor should we continue to expect double-digit increases in our tax base, and there will be a limit to what can be cut without affecting the delivery of City ofMiami Page 6 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 services to our residents. Today we have a choice. We can continue to use the people's money to feed the appetite of the bureaucratic beasts with higher personnel and pension costs or we can remember why we are public servants. We can remember why we are here and put the interest of people first. This statement rings with a greater sense of urgency today. I look forward to finishing our work with all of you and fulfilling our obligation to arrive at a balanced budget by the end of this month. Thank you, Mr. Chairman. Chair Sanchez: Thank you, Mr. Mayor. Thank you. All right. We're going to go ahead and have the presentation. Vice Chair Spence -Jones: Mr. Chairman, are you going to do the presentation now? I do have a statement that I'd like to make. Do you want --? Chair Sanchez: You want to make it before the presentation? Vice Chair Spence -Jones: Well, I can do it right after the presentation. Chair Sanchez: All right. Well, after the presentation. What we wanted to do is have the City of Miami Finance Committee who wants to give us a report, and then what we could do, if we want, you could give your statements, and then we'll open it up to the public. The public will have an opportunity to address this Commission. Vice Chair Spence -Jones: Not a problem. Chair Sanchez: Two minutes per person to address the Commission, and then we'll bring it back to the Commission. The Commission will have an opportunity to ask questions, make amendments, make suggestions, whatever it may be -- Vice Chair Spence -Jones: Not a problem. Chair Sanchez: -- and then we'll vote on the items that are in front of us today to vote. Vice Chair Spence -Jones: Understood. Chair Sanchez: So at this time, you're recognized for the record for your presentation. And if we could have the City ofMiami Finance Committee ready to come up afterwards. Pedro G. Hernandez (City Manager): Mr. Chairman, ifI you allow me for a quick minute. Over the last month or so, we have been meeting with every one of the Commissioners, providing you information on the different iterations of the budget process. You had requested, Mr. Chairman, that we bring back a budget that is based on the current millage rate of 7.67. This is what the proposed 2010 budget has, and it's one that is based on guidelines of -- or principles of not impacting the fund balance, maintaining the current millage, of course, and looking for sustainable reductions, and all of this while trying to minimize the impact on services and the impact on the workforce. It's been a very difficult task. I know the Budget director, who's about to make the presentation, has -- is feeling it, and Michael Boudreaux now will initiate that presentation of the 2010 budget with all those conditions that mentioned before taken into account. Michael. Chair Sanchez: Mr. Boudreaux, you're recognized for the record. Michael Boudreaux: Mike Boudreaux, director ofManagement and Budget. I first need to go over BH.1, which is a discussion regarding the proposed millage rate and tentative budget for the City ofMiami for fiscal year 2009-2010. I need to read this following statement into the record. City ofMiami Page 7 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: All right. This is just a statement read into the record; does not require a vote. Mr. Boudreaux: The first public hearing to discuss the proposed millage rate and tentative budget for fiscal year 2009-2010. The proposed general operating millage rate of 7.6740 for the City ofMiami for the fiscal year beginning October 1, 2009 and ending September 30, 2010 is 14.66 percent lower than the rollback rate of 8.9918. City Commission listens and responds to citizens' comments regarding the proposed millage rate. The actions by the City Commission includes amend the tentative budget, if necessary, recompute the proposed millage rate, if necessary, adopt the tentative millage rate, adopt the tentative budget or the amended tentative budget, as necessary. BH.2 is an ordinance of the City ofMiami Commission defining and designating the territorial limits for the City ofMiami. This is also -- this is an ordinance. The purpose of the FY (Fiscal Year) '10 millage rate for the City ofMiami for both the general operating and debt service are outlined as below. The general operating -- the proposed FY '10 millage rate for the City ofMiami is 7.6740, which is equal to the current fiscal year millage rate. This proposed rate is lower than the rollback rate of 8.9918 by 14.66 percent. The debt service millage rate for the City ofMiami is being proposed at 0.6595, which is higher than the current fiscal year rate of 0.792 mills by 13. 6 percent. BH.3 is the presentation of the budget. Before I present the budget, I would like to pass out some amendments to BH.3. These amendments includes the information or the numbers that we will be presenting tonight for tonight's budget presentation. I'll briefly read into the record. Whereas, the City Manager has prepared and submitted to the City Commission a budget estimate of the expenditures and revenues of all City departments, offices, and boards for fiscal year 2009-2010, copies of such estimates has been furnished to the newspapers of the City ofMiami and to the main library within the City, which is open to the public. Whereas, the general fund budget for fiscal year 2009-2010 is currently at 511,428,230 and the total budget for all funds is at 752,806,363. Whereas, the City's ad valorem millage rate has been reduced to the rate of 7.6740 mills, which is the current millage rate for 2009. Whereas, the major source of revenues for the general fund is derived from categories identified as taxes in the amount of 257,946,343. And whereas, provisions have been duly made by the City Commission for public hearing on the proposed budget before the City Commission as a committee as a whole and public hearing thereon were held. I'd like to now go through the presentation of the budget. Chair Sanchez: All right. Mr. Boudreaux: The focus of the fiscal year 2010 proposed budget was to prepare a structurally balanced general operating budget with reoccurring revenues supporting reoccurring expenditures, to provide a budget with no increase in the operating millage rate currently at 7.6740 mills, to present a budget using no general fund balance with minimum impacts to service delivery, and most importantly, to receive citizen feedback to ensure the proposed budget is consistent with the needs of City residents. The consolidated 2010 proposed budget for the City ofMiami anticipates resources within the general fund, special revenue funds, debt service funds, and blended component units at $754 million. As illustrated in the pie chart, the general fund represents the largest fund at 67.8 percent, with a total budget of 511.4 million. This fund is of particular importance to Miami residents because it represents the allocation made for the general operations of the City and provides resources for most of the basic services, such as police, fire, parks and recreation, solid waste, and street maintenance. Special revenue funds, which primarily consist of federal, state and local grants, total 184 million or 24.1 percent of the total budget. Debt service funds consist of allocations used for the payment of long-term debt and totals 57.4 million, while the budget for blended component units total 1.3 million. In preparing a 2010 proposed budget, the City announced the preliminary shortfall in its general fund of $118 million. Some of the major factors influencing this outcome were decreases in property tax revenue as a result of a 2.5 billion or 6.4 percent decrease in preliminary taxable values while maintaining the City's millage rate at 7.6740 mills, providing across-the-board salary increases to FOP (Fraternal Order ofPolice), IAFF (International Association of City ofMiami Page 8 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Firefighters), AFSCME (American Federal, State, County, and Municipal Employees) 1907, AFSCME 871 union members, effective October 1, 2009; decreased collections from interest, state -shared and building -related revenues; $35 million one-year increase in the FIPO (Firefighters Police) and GESE (General Employees Sanitation Employees) and elected officials' retirement trust as a result of the poor performing financial markets and prior year salary increases provided to active members; a 12 percent increase in healthcare and workers compensation costs; a $15 million increase in special pays, such as vacation payouts, compensatory time payouts, compensatory -- compensation payouts as a result of separation and/or retirement, and salary incentive overtime. Most of this increase is a result of not enough budget allocations provided in previous years and the anticipated increase in these payouts in fiscal year 2010. Finally, the impact of the living wage rate on City temporary personnel and on service contracts. Commissioner Gonzalez: Excuse me. How much is the increase on the special pays? Mr. Boudreaux: Fifteen million. Commissioner Gonzalez: Fifty-eight? Mr. Boudreaux: One five. Vice Chair Spence -Jones: One five. Commissioner Sarnoff Michael, have you broken that down from sick days and vacation banking? Mr. Boudreaux: Yes, sir. I do have it broken down by the categories for special pays. I don't have it here in front of me. Commissioner Sarnoff At the end, could you give it to us? Mr. Boudreaux: Yes, I can. Commissioner Sarnoff Thank you. Commissioner Regalado: But -- Commissioner Gonzalez: What is the impact of the living wage? Chair Sanchez: All right. Let's start recognizing people with questions here. Who's got the floor? Commissioner Gonzalez, you're recognized for the record. Commissioner Gonzalez: What is the impact of the living wage? Mr. Boudreaux: We estimate the impact at about $1 million. Commissioner Gonzalez: Thank you. Commissioner Regalado: Michael, on the special pay -- Chair Sanchez: Commissioner Regalado, you're recognized for the record. Commissioner Regalado: Thank you, Mr. Chairman. In the special pay, the police budget of FY '07 was 3.7; FY '08, 3.9; '09, 4 million. However, in this budget, it jumps to 10 million, which is 6 million more just for special pay in the police. And yet, the same budget proposes a reduction City ofMiami Page 9 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 of the numbers of police officer. How do you explain that? Mr. Boudreaux: The special pays have always been an issue with the City as far as being able to calculate it correctly. When the City converted its system to the Oracle system, a lot of that information was difficult. And the budgets for 2008 and the budget for 2009 did not accurately reflect the full impact of these special pays, and thus was a big issue in closing out those years; 2008 was a big issue and 2009. Now we have the information to correctly reflect the special pays, and we're correctly reflecting it in the 2010 budget. Commissioner Regalado: So we were in deficit? Mr. Boudreaux: Well -- Commissioner Regalado: Last year we were in deficit, and you're carrying over the deficit of this year budget to next year budget? Mr. Boudreaux: In stating it another way, Commissioner, it's saying that we're now recognizing the full impact of these special pays in 2010 in lieu of where we did not recognize the full impact of it in the previous years. Commissioner Regalado: Okay, but in the Fire -Rescue budget, special pay was budgeted in '09 at 6.2 million. However, in this budget, special pay for the Fire -Rescue is 18.3 million, which is like 200 -- Mr. Boudreaux: Well, the special payouts for -- Commissioner Regalado: -- percent in -- Mr. Boudreaux: -- the Fire Department over the years have averaged about $13 million for the Fire Department. Commissioner Regalado: Yeah, and that's what -- my point. You budgeted on the '09 budget only six two point million, so if we did pay -- what we're doing is we're -- Mr. Boudreaux: It's been -- Commissioner Regalado: -- carrying over what we pay in this budget. Mr. Boudreaux: We're just correctly reflecting something that we did not correctly reflect in the past. Commissioner Regalado: Yeah, but it shows on the deficit. Mr. Boudreaux: Well, it's a payout that's going to occur in the City and it has been occurring in the City over the last couple of years, so we should -- now, since we recognize the issue, we're now providing the appropriate allocations to cover it. And we should expect a little bit more of that should we have the exodus of positions in this budget that we're proposing. So we should expect even that number if not more for 2010 should there be terminations of positions and people do cash out their compensatory time or their compensated absences. Commissioner Regalado: And you're right. And I understand, but what I'm saying is that we're showing on this budget part of what we pay on '09. Is that correct? Mr. Boudreaux: Not correct, sir. It's more like we're showing in this budget what we expect these payouts to be in 2010. City ofMiami Page 10 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Regalado: Yeah, but if we just say that it cost more and we budgeted in fiscal year '09 only 6 million, we should have -- Mr. Boudreaux: We should have budgeted a little bit more for that, sir -- that's what I'm saying - - for 2009. Commissioner Regalado: That's what I'm saying, that it's -- Mr. Boudreaux: It's only showing the correct amount for 2010 and making accommodations for any increases in these payouts as a result of termination of positions, which will occur if positions are terminated and these folks -- and everyone cashes out their compensated absences. Commissioner Regalado: Okay, thank you. Mr. Boudreaux: You're welcome. Commissioner Sarnoff Mr. Chair. Chair Sanchez: Yes, sir. Commissioner Sarnoff I just want to -- I want to make the record clear 'cause I don't think it is. Let's say, for instance, that Fire was recorded at 6.2 million in '09, but it really was 10. Just take that one. We're not carrying forward $3.8 million to this budget cycle, correct? Mr. Boudreaux: No, sir. We're filling the pinch right now in the 2009 budget to Commissioner Sarnoff Right. Mr. Boudreaux: -- accommodate that. Commissioner Sarnoff What you're doing is you're now saying Oracle has allowed you to actually capture what special pays are really costing the citizens. Mr. Boudreaux: That is correct. Commissioner Sarnoff Okay. Now here's my other question 'cause I think it's worth talking about. Is there any part of the '09 budget that is going to be carried forward into the '010 [sic] budget? Mr. Boudreaux: No, sir. Commissioner Sarnoff Okay. Chair Sanchez: All right. On -- since we're on that subject, I just want to verify. Special pay for Police is how much and special pay for Fire is how much? Mr. Boudreaux: One second, sir. Let me get that number. Chair Sanchez: All right. Mr. Boudreaux: Okay. Right now special pay for Fire is estimated at 18.3 million. Chair Sanchez: Eighteen point three million. City ofMiami Page 11 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Boudreaux: And for Police, 10 million. Chair Sanchez: Ten million. And for those that are here that don't know what special pay is, could you elaborate a little bit on that? Mr. Boudreaux: Special payouts generally occur whenever an employee retires from the City or separates from the City. It's common in the public industry to allow a person to cash out his vacation time. But in the case of the City, it also allows the person to cash out other types of time, compensatory time earned in Fire. Salary incentive overtime is also considered a special pay in Fire, which is the minimum manning overtime requirement as agreed upon in the contract. Those are the larger ones. You can also cash out your sick time upon retirement, which also you can carry over into your healthcare plan or in your pension plans. You have perfect attendance, which is not a large number, but still this is special pay. You have variations of special pay. Sir, I don't have the list here in front of me, but I do know the larger ones are vacation payouts, sick leave payouts, salary incentive overtime, compensatory time earned payouts. Chair Sanchez: Okay. So ifI were -- not to mention one or the other -- and I worked and I received a holiday, could I bank that holiday? Mr. Boudreaux: If you were a firefighter, yes, sir. Chair Sanchez: Okay. I didn't want to mention anybody here, okay, just an example. So I could bank that holiday and then I could cash it out when I retire. Mr. Boudreaux: You can -- well, there's a maximum amount you can carry over from year to year. So, typically, if you're at that peak, you would cash it out before the calendar year ends. And, of course, if you earned a holiday in February and you know you're going to get an across-the-board increase in October, the smart thing, the prudent thing, the most, you know, logical thing to do, if you were that individual, was to bank it, wait 'til October 1, and then cash it out later. Chair Sanchez: At a higher pay? Mr. Boudreaux: Most definitely. Chair Sanchez: Okay. Commissioner Gonzalez: Mr. Chair. Commissioner Regalado: And only one -- Chair Sanchez: Yes, sir. You're recognized. Commissioner Gonzalez, and then we'll go back to Commissioner -- Commissioner Gonzalez: What is the impact of GESE union and Solid Waste? Mr. Boudreaux: On the what, sir? I'm sorry. Commissioner Gonzalez: On the special pay. Vice Chair Spence -Jones: The Solid Waste, he said. Mr. Boudreaux: Not very significant compared to these other two areas. City ofMiami Page 12 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Gonzalez: But do you have -- Vice Chair Spence -Jones: Do you have the numbers? Commissioner Gonzalez: -- an approximately figure? A million dollars? Chair Sanchez: Half a mill, I think it was. Mr. Boudreaux: I would say out of the $21 million that we're budgeting for special pays, approximately 3 million is GESE areas. Commissioner Gonzalez: AFSCME? Mr. Boudreaux: I mean AFSCME, the two AFSCMEs. The most of -- the bulk of it is in Fire, with Police second, and then the AFSCMEs, third and fourth. Commissioner Gonzalez: So we're comparing $3 million to 15 million and 18 million. Is this on a yearly basis? Mr. Boudreaux: Well, it fluctuates, sir, based on, you know, who's retiring, the amount of accumulated time, so it all fluctuates from year to year. Commissioner Gonzalez: Thank you. Chair Sanchez: Commissioner Regalado. Commissioner Regalado: Mike, if -- okay, if you budget in fiscal year '09, this year, 6.2 million, let's say, for the Fire -Rescue and then it's more and we're not carrying over, where did that money come from? Mr. Boudreaux: Well, as an individual's pay increased, the percentage of their pay increased, the value of these payouts also increased. Commissioner Regalado: No. I know that, but where did you get the money to go over the $6.2 million that you budgeted? Mr. Boudreaux: Well, this is an allocation that we're proposing to cover that expense. Commissioner Regalado: No, no, I know. I know that. But we're -- I'm talking about fiscal year '09, this year, you budgeted 6.2, but apparently, there is more that has been paid, like you just said, because of miscalculation. The rest of the money, where did it came [sic] from? Mr. Boudreaux: Well, if you look at the projections -- or if you look at the information that we're providing to you, we're projecting currently that we're having about a $20 million deficit. Commissioner Regalado: On '09? Mr. Boudreaux: On '09, and a lot of that has to do with a combination of lower collections and these special pays. Commissioner Regalado: So we do have a deficit in this -- Mr. Boudreaux: We're projecting a deficit at the end of '09. Commissioner Regalado: Which will be carryover to -- City ofMiami Page 13 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Boudreaux: No. It's going to hit against the City's fund balance at the end of '09. Commissioner Regalado: Okay, so we do have a deficit in this year? Mr. Boudreaux: Yes, sir. We are. Commissioner Regalado: Okay. Commissioner Sarnoff Mr. Chair. Chair Sanchez: Yes, sir. Commissioner Sarnoff And then to make sure everybody gets hit pretty evenly, correct me if I'm wrong, but once the unions get the right to bank their vacation and their sick pay, likewise the unclassified folks equally get that right, and they have been banking their sick time and their vacation pay such that -- and they're not constrained by the union rules or the collective bargaining agreement. They could collect it for years and years, and then when they retire or resign, they then get paid out? Mr. Boudreaux: They can also accumulate that time. I'm not well -- I'm not versed on how much can be carried from year to year for that group, but I do know they're allowed to accumulate that time to cash out upon separation or retirement. Commissioner Sarnoff Right. Unless the City Manager has put an ADM [sic] in place, they're not subject to the collective bargaining, correct? Mr. Boudreaux: That's correct. Commissioner Sarnoff What they get is the same right to banking their vacation and their sick time, but they may be able to accumulate it ad infinitum until they decide they want to retire or resign, and then you have that one-time big obligation of paying for it. Mr. Boudreaux: That's correct. Commissioner Sarnoff And to compound the injury, if, in fact, they were, say, making $100, 000 five years ago, but by the time they cash out they're making 150, they may be entitled to payment based on the 150. Mr. Boudreaux: That was one of the previous methods. I believe the Employee Relations director -- Vice Chair Spence -Jones: Is there anybody that can answer that question? Hector? Hector Mirabile: Good evening. Hector Mirabile, director of Employee Relations. No, we don't bank infinitums to the executives or the unclassifieds or managerial/confidentials. The APM (Administrative Policy Manual) has structured limitations to it. Some of it's similar to that of the contractual employees. Commissioner Sarnoff Do you know how much you can bank? Mr. Mirabile: Some -- Commissioner Sarnoff A range? City ofMiami Page 14 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Mirabile: Depend on your level. Some can bank up to 200, then it rolls back out. You have to basically cash it out so your limit is 200; some to 300, and there's few employees that are up to 500 because of the -- an ordinance. Commissioner Sarnoff Is that 500 hours, 500 days? Mr. Mirabile: Five hundred hours. Commissioner Sarnoff Okay. Mr. Mirabile: I only talk in hours. Chair Sanchez: Put a number on it. Commissioner Sarnoff What's that? Chair Sanchez: Put a number on that 500 hours. Commissioner Sarnoff Right. Well, yeah, figure it out. I mean, if these people are making $50 an hour, this is significant amounts of money. Chair Sanchez: When they cash out. Commissioner Sarnoff Correct. Chair Sanchez: All right. Okay, you Commissioner Gonzalez: But I -- Chair Sanchez: Yes, Commissioner Gonzalez. Commissioner Gonzalez: -- believe that there aren't those many unclassified people that hang around the City for many years -- Commissioner Sarnoff Right. Commissioner Gonzalez: -- because most of them -- most of the unclassified come and go in a period of maybe five years. You know, as long as I've been around the City, I haven't seen any unclassified people staying for a long time, for a long period of time. Commissioner Sarnoff Commissioner, I can tell you I have an unclassified person here -- that will go nameless -- that, in four years, cashed out his vacation and sick time to the tune of $88,000. Commissioner Gonzalez: For four years? Commissioner Sarnoff For four years' worth of work. Commissioner Gonzalez: Wow. Chair Sanchez: Eighty-eight thousand dollars in four years. Man -- Commissioner Gonzalez: Not a bad deal. Chair Sanchez: -- it's like winning the lottery. City ofMiami Page 15 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Sarnoff Not a bad deal at all. You even know the employee. Chair Sanchez: All right. Let's continue with the presentation. Mr. Boudreaux: Thank you. As you can see from the bar graph, total revenues and other sources in the City has started to decline from a peak of 553 million in fiscal year 2007 to a proposed 511.4 million in fiscal year 2010. A majority of this decrease is due to lower property tax revenues as a result of prior year property tax reform and a slowdown in the housing market. However, this past year has also seen a decline in interest revenue and also a decline in state -shared revenue from adjustments made in municipal revenue sharing and half -cents sales tax distributions, and lower collections from building and permit and inspection fees are also expected for fiscal year 2010. This is why the fiscal year 2010 proposed budget is anticipating total revenues in other sources at 511.4 million. Once again, a majority of these collections will be from property tax revenues at 50 percent of the total collections. However, this source is anticipated to be approximately $18.5 million lower than the prior year adopted budget due to primarily a 6.4 percent decrease in preliminary taxable values and maintaining the City's operating millage rate at 7.6740 mills. The next highest category of collections is charges for services at 16 percent, which includes various charges for City services and collections from the solid waste fee, which was maintained at the current rate of 365 per residential unit in fiscal year 2010 proposed budget. This collection is also anticipated to be $3.5 million lower as a result of lower building inspection in Parks and Recreation collections. Other significant lower collections will be in the areas of interest collection, which is anticipated to be $5.6 million lower than the prior year adopted budget; licenses and permits, which is anticipated to be $1.6 million less and other revenues due to no use of general fund balance. Overall, total revenues and other collections are anticipated to be 2.7 percent lower than the fiscal year 2009 adopted budget. Most of this total reduction is based on maintaining the operating millage rate at 7.670 mills. However, the fiscal year 2010 proposed budget also includes increasing the following. Increased fines in forfeiture fees by 5 percent to generate an additional 133,000; to renew the franchise fee agreement with Florida Power & Light to generate an additional $1.5 million; increase license and permit fees by 5 percent to generate an additional $1.4 million; increase contributions from Miami Parking Authority by 3.5 million by increasing rates on parking meters and garages; increase various charges for services by 5 percent to generate an additional $2.9 million. Other changes is return Sunshine State Loan proceeds to allow principle payments to be deferred in 2010, which will allow us to bring back the additional contribution of $5 million. Move and sell 245 City vehicles to generate an estimated $490, 000 in sale of these vehicles. Allow $5 million of local option gas tax contributions to be used on eligible public works expenses. As you can see also from this bar graph, total expenses and other uses have also increased from 430.7 million in fiscal year 2004 to a peak of 578.8 million in fiscal year 2007. Since this period, total expenses and uses have decreased. This decrease is primarily the result of budget reductions made in fiscal years 2008 and 2009, but the slowdown in spending has not been enough to support greater decreases in revenues and other collections in fiscal years 2009 and what is being projected in fiscal year 2010. This is why the fiscal year 2010 proposed budget allocates total expenses and other uses at $511.4 million. As the pie chart indicates, 44 percent or $221.9 million of the total proposed budget is allocated in support of direct public safety needs in the area of Police and Fire, with 93.7 million and 57 million allocated to pension and risk management costs associated with group insurance. A majority of these costs also support public safety. The remaining allocations are distributed equally with no other area receiving more than 10 percent of the total proposed budget. In order to maintain total spending based on the amount of revenues and other collections mentioned earlier in the following presentation -- earlier in the presentation, the following actions are being proposed. Provide a tier salary reduction with no across-the-board salary increases, no anniversary pays, no longevity pays for all AFSCME, IAFF, executive, managerial/confidential and unclassified positions, which is anticipated to save the City $21.7 million. Eliminate 191 police sworn positions of which 177 positions are filled, 14 positions are vacant, and also freeze 47 positions City ofMiami Page 16 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 with an anticipated savings of $14.3 million. Vice Chair Spence -Jones: Michael, can I ask you a question? Mr. Boudreaux: Yes, ma'am. Vice Chair Spence -Jones: On number two you just talked about now, where -- have you anticipated the $11 million grant that's coming from the federal government in this amount? Mr. Boudreaux: We -- I have had discussions with Chief Timoney and Chief Burden of the Police Department about the COPS (Office of Community Oriented Policing Services) MORE (Making Officer Redeployment Effective) grant to see what the COPSMORE grant can do as far as picking up some of these positions. Vice Chair Spence -Jones: But the question is, have you done a calculation on that? Mr. Boudreaux: I have gotten an estimate of how many of these positions can be brought back from the COPS MORE grant, and I'm still trying to work through that with the chief. Vice Chair Spence -Jones: Right. Because, I mean, if you're telling me an anticipated saving is $14.3 -- Chair Sanchez: The grant's 11. Vice Chair Spence -Jones: -- and the grant is 11, I'm frying to understand. Mr. Boudreaux: Well, you got to understand, the COPS -- Mr. Hernandez: It's -- basically, it's eleven point something million -- Vice Chair Spence -Jones: Eleven point two. Mr. Hernandez: -- over three years. Commissioner Sarnoff Four years. Mr. Hernandez: So it's about -- Commissioner Regalado: No, three years. Mr. Hernandez: -- three and a half million per year. Chair Sanchez: No, no, no. It's three years, and we pick up the cost on the fourth year. Commissioner Sarnoff Right. Mr. Hernandez: On the -- you're totally correct. Vice Chair Spence -Jones: So have you done -- I'm just curious as to whether or not you did the calculations on it. Mr. Boudreaux: I have done the calculations, Commissioner, but the monies that will come from the COPSMORE grant are not going to go into the general fund -- Commissioner Sarnoff Right. City ofMiami Page 17 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Boudreaux: -- but will instead be going into the City's police services special revenue fund. So it will not have an impact on the general fund, but it will allow the City to pick up these -- some of these positions through the COPSMORE grant. Vice Chair Spence -Jones: And I guess I just need a straight answer. Do you know what the -- can you please tell me financially what we would be saving doing that? That's really all I need to know. Mr. Boudreaux: I would estimate that if we were to pick up about 50 police positions at an average cost of $70, 000 that the grant would allow, we would pick up about $3.5 million off of that. Vice Chair Spence -Jones: Okay, so you said about 50 positions, you said? Mr. Boudreaux: About 50 positions. Mr. Hernandez: I would say, Commissioner, that's probably a bit on the high side. It's anywhere between 40 and 50, in that range. Mr. Boudreaux: Yes. Vice Chair Spence -Jones: So that 177 becomes 50 less. Mr. Hernandez: You can reduce it -- say you can reduce it -- Mr. Boudreaux: We can -- Mr. Hernandez: -- by 40-some positions. Mr. Boudreaux: And we've been working with the Police Department to see how we can pick up some of these positions through the COPSMORE. Chair Sanchez: This morning the Chief was here on that item -- Vice Chair Spence -Jones: Yeah. Chair Sanchez: -- and he said $87, 000, I believe, fully loaded. Vice Chair Spence -Jones: Yep. Chair Sanchez: In other words, that means trainings, a gun belt, pepper spray, car, computer, out on the street, was 87 million [sic]. Commissioner Sarnoff But that -- Vice Chair Spence -Jones: Eighty-seven million? Chair Sanchez: Eighty-seven thousand per officer. Commissioner Sarnoff -- presupposes a rookie police officer. So you're putting a rookie police officer on a position that was likely vacated or may have been laid off -- Vice Chair Spence -Jones: No. Actually, the chief said both. He said he could get it for -- it could be a new person or person that's already -- City ofMiami Page 18 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Sarnoff But you put -- Vice Chair Spence -Jones: -- on staff. Commissioner Sarnoff -- but an $87, 000 police officer -- Commissioner Regalado: Is a rookie. Commissioner Sarnoff -- is a brand-new police officer. So bear in mind you're replacing some experienced police officers with absolute rookies. Vice Chair Spence -Jones: Okay, but let -- again, this is the problem I have with this whole process. I'm just going along with it 'til you finish, but it's killing me that we wait until the last moment to do all these equations and to figure out what we can and what we can't do, and at the last moment, we're forced to deal with it. And this is how we made mistakes the last time because we're not properly briefed on key -- this is a very important issue. This is not something that we need to joke about or play with. People's lives are on the line with this. People don't -- people are afraid about their jobs for tomorrow. I expect for the Adminisfration -- when I ask a question, I don't care what I'm asking about, there should be an answer for it, period. Mr. Hernandez: Commissioner, the answer is -- Vice Chair Spence -Jones: And when I -- no. Mr. Manager, it's -- and it's very frustrating to go through this process, to sit here and listen to this stuff over and over again, and when you try to get an answer out of the Adminisfration, you can't get it for whatever reason. You got to almost pry into it to fry to get it, and all of us up here, we're responsible. We have to look into the faces of these people every single day servicing our districts. When we ask a question, we want to know -- I don't want no hemming and hawing. I want an answer. And if we don't have an answer, then y'all need to go back into your little offices, work it out, and then have another meeting, period. That's how I feel about it. But I'm going to let you finish your presentation. Chair Sanchez: You may proceed. Mr. Boudreaux: Thank you. Mr. Hernandez: Mr. Chair, ifI -- the answer is 43 positions that can be saved with the COPS grant on a yearly basis. Chair Sanchez: All right. Okay, go ahead. Mr. Boudreaux: Okay, I'm sorry. Freeze 53 IAFF Fire vacant positions, at an anticipated savings of $3.6 million; eliminate 248 AFSCME 1907 positions of which 87 positions are filled, 161 positions vacant, 3 positions -- we also propose to freeze 3 positions, at an anticipated savings of $12.5 million; eliminate 18 AFSCME 871 sanitation positions, 13 positions are currently filled, 5 positions are vacant, with an anticipated savings of 621, 000. Vice Chair Spence -Jones: Mr. Boudreaux -- Mr. Boudreaux: Yes, ma'am. Vice Chair Spence -Jones: -- may I ask you another question as well? Mr. Boudreaux: Sure. City ofMiami Page 19 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: Our sanitation workers, can you put that slide back up for me, please? So you're looking at $621,000 that could be saved out of cutting -- out of all the people. We know that we can't have not one garbage person not working on the streets, correct? Mr. Boudreaux: That's correct. Vice Chair Spence -Jones: Okay. So out of that, I'm looking that you have 13 positions filled, correct? Mr. Boudreaux: That's correct. Vice Chair Spence -Jones: Okay. Five positions will be vacant, right? Mr. Boudreaux: Yes, ma'am. Vice Chair Spence -Jones: Okay. So my question is, so that means if these particular things -- I'm assuming that's 18 employees that we're looking at losing in Solid Waste. Mr. Boudreaux: It's 13 filled. The other five are vacant positions that we're proposing to eliminate. Vice Chair Spence -Jones: Okay. So 13 people gone, 5 new positions -- so let's deal with -- I'm going to deal with the live bodies. I don't want to deal with ghosts, people that ain't there. I'm talking about people that have to pay for, you know, their rent, you know, and have to take care of their kids. Let's talk about those 13 bodies. You're saying if we cut 13 people, we're going to save $621,000? Mr. Boudreaux: We're saying -- Vice Chair Spence -Jones: Or is that including the five vacant positions? Mr. Boudreaux: That is including the five vacant positions. Vice Chair Spence -Jones: So let me ask this question. Have we also looked at, as we talked about earlier, the issue of the equipment that my fellow colleagues had issues with? Remember, we talked about the $2.6 million that we had for garage trucks, about us purchasing them. Have we looked at every single other option made available to us -- and I mentioned it earlier this morning, about leasing it, which would save us about $1.5 million if we decided to lease it. Have we considered other options before losing our employees? Has that been a consideration? Mr. Boudreaux: It has -- currently not has been considered, but at the same time, you know, as we receive the directions from you, Commissioner, we can go back and consider these options. Vice Chair Spence -Jones: But see, listen -- I'm not a budgetary -- I'm not the budget person, so let's be clear. I expect for you and staff and everybody else to give us those kind of answers. But for me to see 13 people without a job, I want you to look under every crack, every crevice, every rock to find whatever's necessary to make sure people's lives are not affected. To me this is -- Mr. Boudreaux: Commissioner, if you allow me to clarify on the 13 positions. Vice Chair Spence -Jones: -- this, to me -- I want to be very clear because -- Mr. Boudreaux: If you allow me to clarify on the 13 positions. Vice Chair Spence -Jones: No. I'm going to finish what I have to say, then I'll let you clarify it. City ofMiami Page 20 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Boudreaux: Okay, thank you. Vice Chair Spence -Jones: Okay. I expect you and the Administration to do everything necessary or possible to make sure that's not happening. Honestly -- I'm just telling you my viewpoint -- I don't feel like everything has been done, period, period. Commissioner Gonzalez: May I? Applause. Vice Chair Spence -Jones: I'm so frustrated with this. Chair Sanchez: All right, hold on. Commissioner Gonzalez. Let's fry to keep -- Commissioner Gonzalez: No. Commissioner Regalado -- Chair Sanchez: -- refraining from clapping. Commissioner Gonzalez: -- was asking for the floor before me. Chair Sanchez: Commissioner Regalado, then we'll follow with Commissioner Gonzalez. Commissioner Regalado: Mike, on the budget proposal, you have $5 million contingency reserve untouched, you want to keep there. That doesn't have to do anything at all with the budget -- I mean, with the reserve that we have. Mr. Boudreaux: No, sir. Commissioner Regalado: Okay, so these are $5 million. Last year, you had also a contingency reserve, right? Mr. Boudreaux: Yes, sir. Commissioner Regalado: And how much you spend of that? Mr. Boudreaux: Every year we're required under the financial integrity ordinance to have $5 million put aside. Commissioner Regalado: Right. I know that, but how much you spend this year budget of those $5 million. Mr. Boudreaux: We're estimating to spend all of it, sir, by -- because of the fact of the projected deficit at year-end. Commissioner Regalado: So, okay, 5 million contingency. Do you have another contingency in this budget? Mr. Boudreaux: No, sir. That's the only contingency in this budget. Commissioner Regalado: Well, I think we found another one, but that's another issue. So, it is -- if you were to discount following the five position vacant, that will be a saving if you don't -- if you layoff or fire these people, six, five, seventeen. Because 50 -- more than 60 percent -- 70 percent of the Solid Waste employee earn less than $50, 000. Is that correct? Mr. Boudreaux: That is correct. City ofMiami Page 21 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Regalado: And by the way, they're going to be hit by the six percent tier reduction, right? Mr. Boudreaux: Yes, sir. Commissioner Regalado: Which is very unfair to me because, I mean -- but -- so we're talking if those positions were not to be laid off it would be -- it would only save the five positions vacant, which would be like $100,000 -- no, 150, 000. Mr. Boudreaux: You know, the average pay on that position is probably 30 to 35,000 a year. Commissioner Regalado: A hundred -- Mr. Boudreaux: A hundred -- Commissioner Regalado: -- okay. Mr. Boudreaux: -- and fifty thousand is what -- Commissioner Regalado: Okay. Mr. Boudreaux: -- you're looking at. Commissioner Regalado: So you know. Thank you, Mr. Chairman. Chair Sanchez: All right. Commissioner Gonzalez: Yeah, Mr. Chairman. Chair Sanchez: Commissioner Gonzalez. Commissioner Gonzalez: You know, who says that life is fair? I think that life is totally unfair. But believe that it is totally unfair that the burden of this crisis be put on the AFSCME employees and on the Solid Waste employees, the people that make the less amount of money in the City. You know, it's totally unfair. But also, we have to realize that we have a problem and we need to find $118 million. You know, one solution might be that we might stop this meeting for five minutes, each one of us go and buy a lottery ticket and pray that we get the right ticket for Saturday, and then we solve the problem. We donate the money to the City and solve the problem. But the thing is that have heard on TV (Television) the example of Broward County. In Broward County, there has been employees willing to donate `X" amount of hours a month to make sure that their colleagues don't get fired. We don't have that unity in this city, unfortunately. It's sad to say that they should be looking at each other like brothers, like they been working in this city for `X" amount of years, and they should be doing their own thing to protect each one of them. And they should say, you know, what do we have to do to make sure that nobody get laid off. That is not happening. There is a certain group that are willing to make the sacrifices, that are willing to have pay cuts, that are willing to do furlough, that are willing to do anything it takes, but there's some other groups that are saying no, and there's some other groups that are putting conditions in order to make concessions. Let me tell you something. I'm not here to lie at anyone. And I'm not willing to vote on any concessions for this year knowing that next year the crisis is going to be even worse than this crisis. So I'm not going to be promising anybody, any union -- no, no, no, give me this now and next year I'll give you 20 times what you're giving me today because I know I won't be able to do what I'm telling them that I'm going to -- and I'm notgoing to lie to them. I'm notgoing to lie to anybody. But reality is that we have to face -- this is a problem. This is not a game. This is a real serious problem City ofMiami Page 22 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 that we have to face, and we're going to have to make some real sad, tough decisions. Vice Chair Spence -Jones: Mr. Chair. Commissioner Gonzalez: And I don't want to see anybody fired. I don't want to see anybody losing their jobs. I wish that we can find a way to keep everybody. But you know what? God says you help yourself and I will help you, okay. Chair Sanchez: All right. Vice Chair Spence -Jones and then we could continue with the presentation. Vice Chair Spence -Jones: Let me just say this. I -- of course we all know that we're going to have to compromise. I hope that there is compromise from all perspective, not just from the City employees, but from the unions and from the City staff and the folks that are actually frying to make this work. I know no one wants to see anyone fired. That's not what this is about. I just -- it's just very frustrating to be briefed and to have conversations regarding these issues and I have to sit in the office and ask the question what are the additional things that we're doing to address, you know, the shortfalls. I just feel at times that, you know, we -- the creativity that's necessary to save the jobs or to make sure that we can continue to provide services, quality services to our residents becomes second to ego, and it's really, really frustrating because the people that get hurt in the end are the little people. And I agree with Commissioner Gonzalez. I'm not taking anything -- I think the burden has to be shared by everyone. Every City employee that I've asked, they don't have a problem with giving up time if it means that their fellow colleagues are going to have a job. I just don't think we've even asked -- really asked the question to many of them. So I don't -- I -- my concern with today's hearing -- and I said it to staff earlier, and I've said it to the Manager. When we make decisions that are going to affect people's lives, we need not play with it. We need to make sure that we've gone through every length -- when I look at number four on here and -- acknowledging Commissioner Gonzalez again, both him and I know -- all of us know that Charlie Cox has bent over backwards. He probably has broke his back -- I don't even know where Charlie is -- trying to protect his employees. So we all know that and Administration know that Charlie's doing that. But then there are also things that we -- additional things that can be done, simple questions that I have not been able to have an answer on that I'm asked to vote on today, you know, I think it's crazy. For instance, I've asked the question over and over again. We have several employees, Mr. Boudreaux, that are in the DROP (Deferred Retirement Option Program) program that have been with the City ofMiami 25, 30 years that would be willing to leave. I'm asking you and I have asked what is the fiscal impact of that, period. Which means when those employees leave, guess what, the salaries for the individuals that are going in those positions are a lot lower, and those people that are already in the system don't have to be let go. I just don't understand why we're not doing everything necessary to address that. I don't get it. And I'm saying this -- and I'm going to let you finish your presentation, but I think -- and I understand that everybody's here to put their opinions, their concerns, their voices, all of that on the record. I understand that. But at the end of the day, I will not make a decision on something that I feel like we don't have all the information or at least more solutions on. I think it's crazy for us to sit up here and do that. Guess what? We did that in 2007, and look where that got us. From that briefing that we had prior to that, the same issue that we're arguing about right now, Fire and all of that, when it was all good back then, now it is not good. So you're not going to get me to rush into anything, period. It ain't going to happen. And I think our colleagues -- every single colleague sitting up here should have the same position. We shouldn't get up here and have to find out anything new. Our residents shouldn't be listening to it on TV or watching -- finding out anything new. What's the big secret? Chair Sanchez: You may -- Mr. Boudreaux: Okay. City ofMiami Page 23 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: -- proceed with the presentation, sir. Mr. Boudreaux: All right, the next slide shows the elimination of 110 nonunion positions, of which 74 positions are filled, 36 positions vacant, with an anticipated savings of $9.6 million. One of the primary reasons for the approximately 13 AFSCME 871 positions to be let go in this budget is a result of the change to the once -a -month bulk frash pickup scheduled effective one -- January 2010 that will -- as a result of that, this is why a majority of these 13 AFSCME 871 positions are being considered. Change healthcare plan funding method for all City active and retired employees in areas related to deductive payments, out-of-pocket maximums, inpatient hospital charges, emergency room and urgent care charges and prescription drug costs to save 5.4 million based on these plans redesign and modification. Eliminate support to all NET (Neighborhood Enhancement Team) offices and the Office of Citistat, Community Relations Board, the Office of Film and Special Events, Sustainable Initiative [sic], and the Mayor's International Council. Vice Chair Spence -Jones: Mr. Boudreaux -- Chair Sanchez: Vice Chair. Vice Chair Spence -Jones: Mr. Chairman, can I --? I have to ask this question. When the NET offices -- I'm going to use that as an example. When they're no longer there in the neighborhoods, you know, our little so-called mini city halls that you acknowledged this morning, Mr. -- Commissioner Regalado, when they're not there to provide the services to all of our communities, who's going to do that work? I'm just curious. The little Litter Busters that make, you know, pennies, when certain areas don't get cleaned up, who's going to make sure the City's not in a mess? Who's going to do that now? Who's going to help all the people with their taxes that depend on the NET office? Who's going to do all that work? Mr. Boudreaux: Commissioner, I understand the distress that all this is putting -- Vice Chair Spence -Jones: It ain't no stress. I want you to be very -- Mr. Boudreaux: -- distress that it's putting on all of the City -- on the City budget. Vice Chair Spence -Jones: Right. I want you -- Mr. Boudreaux: We understand that. Vice Chair Spence -Jones: -- my -- Commissioner Sarnoff Wait, wait. The question shouldn't go to Michael. The question should go to the Manager because Michael just is doing the numbers and he's getting beaten up very unfairly. He's merely the messenger. Number don't lie. Liars -- Vice Chair Spence -Jones: Well, Mr. Manager, I'll turn this heat over to you if you want it. Chair Sanchez: All right. Listen, before we turn it over to you, Mr. City Manager, look, these -- once again, we are the policymakers here. These are recommendations that are being made. If Commissioners have concern with some of the items, you should suggest to get information as to how much the reduction would be. And later on in this budget -- it is our obligation to amend this budget. It is our obligation to modify this budget. The one thing is that at the end when it's all said and done, it's got to be a balanced budget. Of course, I think we're all here on some disagreements as to some of the people and some of the items that are going to be -- that are being projected or suggested to cut. But the final decision is made by us. The final decision is City ofMiami Page 24 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 made by us on first reading and second reading, and if anything, by September 30. So let's -- Mr. Hernandez: Mr. Chairman, ifI may. You did request that we bring back a budget based on the 7.67 -- Chair Sanchez: Exactly. Mr. Hernandez: --flat millage rate. And it is difficult to get to the number required to meet that challenge. And what we have proposed is a budget that actually gets you there. I know that some of the options and some of the recommendations that we have are not very, you know, likeable. Chair Sanchez: Okay. Mr. Hernandez: They hurt, they're painful, but it's about the only way. We were given a charge, and we have, in essence, delivered what you asked for. Chair Sanchez: Let me just inquire as to the elimination of the NET office. My understanding is it's about $13 million? Commissioner Sarnoff No, four point -- Mr. Hernandez: Three point seven. Chair Sanchez: I mean 3.7, sorry. Mr. Hernandez: Three point seven million. Chair Sanchez: Okay, 3.7. Vice Chair Spence -Jones: Forty jobs. Commissioner Sarnoff Forty-nine. Chair Sanchez: When you break down all the rest, the Citistat, the CRB (Community Relations Board), the FACE (Film, Arts, Culture & Entertainment), the film, the special events, the MSI (Mayor's Sustainable Initiatives) and the MIC (Mayor's International Council), what are they all combined? Mr. Boudreaux: The biggest part is the NET offices, and the other offices are pretty small. So all combined, it's no more than $5 million. Chair Sanchez: Five million, okay. Commissioner Sarnoff Just so we're clear, NET is 49 positions, $4.391 million, correct? Mr. Boudreaux: That's correct. That was what's being proposed for them in 2010 before the cut. Commissioner Sarnoff Okay. Chair Sanchez: Which the reduction number of the NET office is 3.7? Mr. Boudreaux: Yes. Well, if you look at what we had proposed for 2010, which the Commissioner is reading off -- and if you give me a second, I can look at the same information. City ofMiami Page 25 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Because the whole thing here is, if we want to save a department, what we need to do is find the revenue to come up with that money, if that's what the will of the Commission is, on every aspect of it. Commissioner Gonzalez: May I? Chair Sanchez: Yes, sir. You're recognized for the record. Commissioner Gonzalez: First of all, we don't have to decide on this budget today. Commissioner Sarnoff Right. Commissioner Gonzalez: The only responsibility that we have today is to set -- Chair Sanchez: Set the millage. Commissioner Gonzalez: -- the millage at whatever rate it is. This is a proposed budget from the Administration. But I agree with you, you know. If we disagree -- let's say, for example, on this page we anticipate a saving of $9.6 million. If we disagree with this, what we need to do is we need to find $9.6 million. On the other page, if we have a saving of $18 million, if we disagree, let's look for the $18 million, you know. Because the only thing that these people can't do is make miracles. Miracles are out of the question. You know, this is reality. And like Commissioner Sarnoff said, numbers do not lie. Two and two is four. Chair Sanchez: All right. Mr. Boudreaux: Okay. Chair Sanchez: Continue. Commissioner Regalado: IfI may, Mr. Chairman. Chair Sanchez: Commissioner Regalado. Commissioner Regalado: I think I have to -- just for the record, and first of all, I appreciate all the briefings and all the hours that you and the Manager and Larry have given District 4 in the past three or four weeks, and it was important. However, I got to recognize what the Vice Chair said. I remember that one of the briefings we mentioned to you and the Manager and said we heard that NET office would be eliminated, and one ofyou said, that's a wild rumor, and this was like a few -- two weeks ago. I got to learn about the firing of police officers and all the other when we got the document on Tuesday morning. Last briefing was on Thursday of last week, and we were talking about the different avenues that the Manager had with the -- focus the whole thing on the unions. So if we ask so many questions, it's because we were blind -sided, at least I was, with all these proposals. So I got to ask you just before you continue, one thing that caught my eye on page 165 of the budget is a proposed 10.2 million increase in operating expenses for Risk Management. In two -- in this budget, you have 47.2 million. In the budget that we're discussing, you have 57 million. That's 10.2 additional million, and yet, you are reducing the numbers of employees in Risk Management. Is that -- how do we --? Mr. Boudreaux: The Risk Management Department, of course, went through its course for its personnel operating expense reductions, but we do have insurance requirements for next year that we have to address. Also, workers compensation claims are up, so we still have to address that part of the payout for 2010. So -- City ofMiami Page 26 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Regalado: And Mike, bear with me because you're recommending -- well, you said that you're working on change healthcare plan funding methods. If we achieve that, do we still need those ten additional millions of dollars if you achieve the healthcare funding method? Mr. Boudreaux: We would say that we probably will not, Commissioner, but experience dictates the plan and the use of the plan, and since the plan is also offered to retired members and active members, you know, based on experience of the plan will dictate how much we need to support the plan. So, you know, once again, if the experience said that we have to add $10 million to insurance cost because experience has been driven up, we have to provide it. If as a result of eliminating these positions, it drives the experience down, then we'll adjust the budget to accommodate that drive down, but right now the experience says that it's going to be up. Commissioner Regalado: Yeah, but experience and numbers don't lie. Number 8 here says change healthcare plan funding method as a mean to save money. Yet, you're telling me that experience is telling you that you need ten more million for Risk Management. Mr. Boudreaux: And what I'm saying is that if we didn't change the funding method on top of that increase in the experience, we would have to provide more for health insurance costs. Commissioner Regalado: So we're taking a jump. It could have been 20, 30 (UNINTELLIGIBLE) -- Mr. Boudreaux: It could have been a little bit higher had we not proposed this change and redesign. Commissioner Regalado: And we didn't foresee that last year or the year before? Mr. Boudreaux: Well, every year Risk Management costs tends to go up. How much up depends on the experience and the plan. So once again, experience dictates how much is needed to support the cost. Commissioner Regalado: Thank you, Mr. Chairman. Chair Sanchez: All right. You may proceed with your presentation. Mr. Boudreaux: Okay, thank you. Eliminate NET offices, Citistat, CRB, FACE, Film and Special Events, MSI, which is the Sustainable Initiative Department, and the Mayor's International Council. Eliminate contribution to various outside agencies, such as Liberty City Trust, Virginia Key Beach Trust, Allapattah Business Development Association, the Business and Improvement Committee, Bayfront Park Trust, Quality of Life Task Force, Citywide Poverty Initiative Program and reduce the contribution to the Civilian Investigative Panel by 50 percent. Defer the mandatory living wage rate until a later date to allow it to be implemented during a better fiscal period. Reduce citywide fleet by 245 vehicles and save an estimated 832,000 in repair, maintenance and fuel costs. And finally, thanks to your support today, defer $7 million in GESE pension costs through the change in the plan's asset valuation method. Overall, these reductions will reduce personnel costs by approximately 71.3 million, with operating and non -operating expenses reduced by 14.2 million and 13.1 million, respectively. However, the fiscal year 2010 proposed budget continues to provide support to the elderly feeding program, provides $871, 000 in support of new recreation facilities scheduled to open at Robert Clemente Park, Caribbean Marketplace, Henderson Park, the Black Police Precinct, Japanese Garden, and the Police Benevolent Association. It provides $674, 000 in personnel and operating allocations to the new College of Policing scheduled to open in fiscal year 2010, along with providing an additional $1.8 million in support of public safety needs. Commissioner Regalado: Mike, can I ask you --? Mr. Manager, I'm a little intrigued here City ofMiami Page 27 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 because, number one, we're -- we were told that the police -- the College of Policing will not be opened until probably the spring of next year, but it's not -- it will not be finished. Butl remember that we vote of an interlocal agreement with Miami -Dade County School Board, and Miami -Dade County School Board will be the lead partner in this facility. And the question is, why does the City ofMiami needs to bring --? Well, actually, we're doing -- we're giving the new policing college more than what we save in laying off all the Solid Waste workers, $621, 000. We lay off 18 Solid Waste workers, but we provide 670, 000. Now the question is, the City ofMiami, by charter, is not required to run education. This is not within the law that the City ofMiami needs to provide basic services. And education is not of the authority of the City ofMiami. We have a taxing authority that is called the Miami -Dade School Board. This is a taxing authority with elected officials, a $2 billion budget. They just did it yesterday. And -- so why are we -- I understand that we help in the construction, but why are we have to write a check for $674, 000? And the question is, do we need to write itnext year too? Mr. Boudreaux: Well, Commissioner, this is -- Mr. Hernandez: Commissioner, the facility, I believe, will be opened in the early part of the new fiscal year. And the portion that we're showing that Mike just made reference to is the City portion. Miami -Dade School Board is paying for their share of the operation of that building. They'll use it for a criminal justice magnet school, and we will use the other half of the building for police training. Commissioner Regalado: What police? We don't have police. You're firing 200 police officer [sic]. Mr. Hernandez: Well -- Applause. Mr. Hernandez: -- obviously, over the last few years, Commissioner, we have been increasing the police force substantially. We have a number of recruits today that are part of a plan. And if we get the contribution -- if we do get the contribution (UNINTELLIGIBLE) I expect from the police union, there will be no impact on those officers or on the recruits, and then we can use the monies from the COPS program to hire additional police officers, which -- Commissioner Regalado: No. Mr. Hernandez: -- was the original plan. Commissioner Regalado: Mr. Manager, I just -- I understand what you're saying, but this is an addition to the police budget, right, the six hundred and seven --? Mr. Hernandez: Yes. Commissioner Regalado: So next year will be the same and the same -- it -- why it's not included in the police budget? Mr. Hernandez: This is something that it's a new addition. It's a new facility, and it was not there in the original proposal, so we added it as an addition because we realized that it would be needed and we didn't want to fall short. Commissioner Regalado: Okay. Thank you, Mr. Chairman. Chair Sanchez: And this Commission voted it and approved it. All right, Vice Chair. City ofMiami Page 28 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: I have a question. The book that received Tuesday, two days ago, it says continue to provide 2.6 million to Solid Waste to provide -- replace of aging vehicles. That's what in -- Mr. Hernandez: Right. Vice Chair Spence -Jones: -- that was in my book. But I'm looking at my presentation today and it says provides 1.8 million in additional public safety needs. Where -- what is that? Mr. Boudreaux: The $1.8 million is dedicated between Fire and Police to help support some additional requirements in 2010. The 2.6 is a continuation of a dedicated source to provide -- continue to provide solid waste equipment based on -- Vice Chair Spence -Jones: Okay. Mr. Boudreaux: -- the increase in the solid waste fee. Vice Chair Spence -Jones: So is there another bullet that missed here? Mr. Boudreaux: Well, it's not an additional item for 2010, the 2.6. You already approved that when you increased -- Vice Chair Spence -Jones: No, no. Mr. Boudreaux: -- the solid waste fee last fiscal year -- Vice Chair Spence -Jones: Michael. Mr. Boudreaux: -- or 2009. Vice Chair Spence -Jones: Michael. Mr. Boudreaux: Okay. Vice Chair Spence -Jones: I'm looking at there's four bullets here, and you just read each one of them off and they're here -- basically, they're here in the book that you gave me. Is there a $2.6 million bullet that I'm just not seeing here? Mr. Boudreaux: There's no $2.6 million budget to be shown on this presentation, Commissioner, because it's not an added to the budget for 2010. It's already incorporated in the budget in 2009, so it's not a new item that we're adding in 2010. Vice Chair Spence -Jones: I guess I'm -- what I'm doing is I'm following what you gave me on Tuesday compared to what I'm getting right now. It's not on your slide. That's all. Mr. Boudreaux: The language -- I'm sorry, Commissioner. But it also says that it's a continuation of the support for the new solid waste equipment that we are dedicating still $2.6 million for that -- Vice Chair Spence -Jones: All right, but it's -- Mr. Boudreaux: -- equipment replacement. Vice Chair Spence -Jones: But my point is the dollar amount should be reflected in the presentation, unless it's on the next slide. Is it? City ofMiami Page 29 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Boudreaux: It's not something that we're adding on top of the 2010 budget, Commissioner. Vice Chair Spence -Jones: Okay. Well, then let me add this to you then. This 1.8 million additional public safety needs -- Mr. Boudreaux: That's new. Vice Chair Spence -Jones: That's new. Mr. Boudreaux: That's new. Vice Chair Spence -Jones: Is it new as of today? Mr. Boudreaux: It's new as of what we're proposing for 2010. Vice Chair Spence -Jones: Right. As of today, you added it 'cause it wasn't -- it's not in my -- it's not in the book you gave me two days ago. Mr. Boudreaux: It is in the material that we have been providing, Commissioner, but it's not listed in that book, per se. Vice Chair Spence -Jones: Mr. Manager, it's not in the book. I had this two days ago. This is supposed to be -- this is the information that we have to make -- Mr. Hernandez: Yes. Vice Chair Spence -Jones: -- a decision on. What I'm getting briefed on now is not what we got briefed on two days ago when we got the package. Mr. Hernandez: Well, Mr. Boudreaux was saying -- Vice Chair Spence -Jones: That's not -- Mr. Hernandez: -- that that's something that has been there for a number of briefings. Vice Chair Spence -Jones: Am I the only one seeing this? I'm asking a question. I'm seeing now an additional $1.8 million in additional public safety needs in the presentation right now. When you gave me the book two days ago, it was not in here. That $1.8 million could provide some additional jobs. So I'm just trying to understand where did it come from. Mr. Boudreaux: Commissioner, in the material that we've been providing you during our briefings, it also includes an additional request report that details all the additional items that we're add -- we would like to add to 2010 budget, which includes additional support to public safety, Fire and Police. Vice Chair Spence -Jones: I -- Mr. Manager, are you understanding what I'm asking? Mr. Hernandez: No, Commissioner. Vice Chair Spence -Jones: Colleagues, do you not understand what I'm --? Okay. Look in your book on page -- your budget book on page 14. Maybe I need to make it clear enough and then -- on page 14, when I look at what he's giving me, these are the additional dollars. He just talked about the $871, 000 that's going to go to the new parks. He talked about the 674 that's going to go to the College of Policing. These other two items, I didn't see on here. City ofMiami Page 30 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Sarnoff It says continue to provide -- Mr. Boudreaux: Commissioner, this -- Commissioner Sarnoff -- $2.6 million to the Solid Waste Department to replace aging vehicles. Vice Chair Spence -Jones: Right. You see that, right? Commissioner Sarnoff Right. Vice Chair Spence -Jones: And what I'm asking is on this slide -- this is the same slide -- has something changed? Where did the $1.8 million -- where are get -- Mr. Boudreaux: Commissioner -- Vice Chair Spence -Jones: -- this additional 1.8 million that we're talking about we're going to now have, where did it come from? Mr. Boudreaux: Commissioners, in our briefings to you, we provided a report that showed the reductions that we're proposing and the additional items that we would like to add back. The total amount is listed and the breakdown of the additional requests were also provided that list the 1.8 million in public safety request for fire and police. It doesn't specifically state it in the highlights in the book, but it is in the information in the book if you look at the reductions breakdown. Vice Chair Spence -Jones: Okay, but -- I'm not -- Mr. Boudreaux: I understand. Vice Chair Spence -Jones: -- I know -- Mr. Boudreaux: I understand. Vice Chair Spence -Jones: -- as Commissioner Sarnoff came to your rescue, I'm definitely -- Mike, I appreciate and value everything that you do, and you work hard and you try your best to make sure we have all the information. But ifI have to make a decision about something, I want to be able to make a decision with all the correct data and information. So if it's bulleted out on here, which is what people are watching on TV and what these people in the audience are seeing, it needs to be consistent with what you gave us to make a decision on. That's all I'm saying. Mr. Boudreaux: Okay. Vice Chair Spence -Jones: I don't want to beat a dead horse, but it's not here that it -- it's not like it's being presented. Commissioner Gonzalez: Mr. Chairman. Mr. Boudreaux: On -- Chair Sanchez: Yes, sir. Mr. Boudreaux: -- the pages -- City ofMiami Page 31 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Gonzalez: Just a matter of -- Mr. Boudreaux: I'm sorry. Commissioner Gonzalez: -- two seconds. What is important to me is not the allocation or the request of $1.8 million in additional public safety needs. What would like to know is how is that $1.8 million is going to be used? What for? Buy new guns? More Tasers? Mr. Boudreaux: If you allow me, sir, I can break it down for you. Commissioner Gonzalez: More police dogs? Chair Sanchez: Listen, why don't we go ahead and break it down, the 1.8, and let's move on with your presentation. Mr. Boudreaux: Okay. For Fire -Rescue, we're proposing $250, 000 be provided for a matching of the Assistance of Firefighter grant for the purchase of protective equipment -- Commissioner Gonzalez: Okay. Mr. Boudreaux: -- bunker gear and generators -- Commissioner Gonzalez: That's good. Mr. Boudreaux: -- $6, 693 matching grant requirement for the Emergency Services Grant for cardiac evaluation equipment. That's Fire. Commissioner Gonzalez: Okay. Mr. Boudreaux: For Police, we're proposing -- for the Police Department, we're proposing additional allocation support of overtime, 1.3 million because of the trend that we've been seeing in overtime for the Police Department. We're also proposing $136, 000 to allow the Police Department to purchase automated vehicle locator services for all police vehicles so they can have a locator services for each vehicle; $69, 000 for additional repair and maintenance for the service of the police helicopter; additional allocation for calibration of the police speedometers of $1,220; additional allocation for police radar repairs of $22,240. Commissioner Gonzalez: Thank you. Chair Sanchez: Okay. Commissioner Regalado: Mr. Chairman, ifI may. On the overtime -- Mike, on the overtime, you -- experience tells you that you're going to need $1.3 million on overtime for the police, but that is before the layoff or after the layoff? Mr. Boudreaux: This is after the layoff Commissioner. Commissioner Regalado: So this is after the layoff. So we are firing police officers, but we need to bring more money in for overtime? Mr. Boudreaux: Well, Commissioner, before we actually made the decision on the police officer positions, we looked at the frend of use of overtime in the Police Department before that. And we made the recommendation to provide 1.3 million for the Police Department based on that trend, okay. Since that time, we have proposed the elimination of police officer positions, so I would have to say we may have to consider even more overtime if that is the case. How much City ofMiami Page 32 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 more? We have to see what the impact will be from the elimination of these positions. Commissioner Regalado: And just for the record, historically, the only two persons that were here during the Oversight Board was the Chairman and myself. We sold the helicopter that the Police Department had at -- Chair Sanchez: 'Cause we couldn't afford it to operate. Commissioner Regalado: Huh? Chair Sanchez: We couldn't afford it to operate. We didn't even have a gas for the -- we didn't have money for the fuel. Commissioner Regalado: I know. And like I said -- Mr. Boudreaux: But, Commissioner, just to clarify, the police helicopter itself was purchased with UASI (Urban Areas Security Initiative) monies. Of course, it does cost the general fund to maintain it, but it was purchased with UASI money. Commissioner Regalado: It cost like $14, 000 a month to maintain it and to run it. That's the cost, sir. I asked. But -- so you know. Mr. Boudreaux: Yes, sir. Chair Sanchez: Okay. Mr. Boudreaux: Last slide, Commissioner. Commissioners and residents of the City ofMiami, the 2010 proposed budget is currently balanced at $511.4 million based on no use of fund balance and with a millage rate remaining at the current rate. The proposed budget is based on a significant reduction in City spending with limited impacts on City residents. At this time, if you have any more questions, I will attempt to answer them -- Commissioner Regalado: I do. Mr. Boudreaux: -- to my best knowledge. Commissioner Regalado: I do. Spending, what are -- in terms of spending, forget the salaries, which is the main problem, but spending. What are we cutting in this budget that -- Mr. Boudreaux: Well -- Commissioner Regalado: -- in terms of spending? Mr. Boudreaux: -- in one of my previous slides, I illustrated that we're -- Commissioner Regalado: Right. Mr. Boudreaux: -- spending -- we're cutting away about $71 million worth of personnel expenses. Commissioner Regalado: No, no. But I mean the Manager issued a freeze, no more pencils, no more hiring, although you're still sending bulletins to hire people. I got it in my office, the day before yesterday, two bulletins, one for IT (Information Technology), the other for Building. You're still hiring or that was a mistake? City ofMiami Page 33 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Boudreaux: Well, any of the hirings that have -- Mr. Hernandez: Commissioner, in essence, if we're doing any hiring, it has to be a very essential position. Otherwise, the answer is no. Commissioner Regalado: No. I mean -- Mr. Hernandez: You know, and the -- we not only have the hiring freeze, but the procurement freeze is there in order to be able to help us come out balanced in the present year, '09. He did mention a pressing -- Commissioner Regalado: And -- Mr. Hernandez: -- you know, shortage in '09, and we're putting that freeze in there to be able to take care of it. Commissioner Regalado: Right. And I just want to bring this up because -- I mean, it's minimal, and it probably -- it's only rhetorical, but there is a number in here in Miami -Dade County that you call for the time and the hour, and everybody knows that number; for -- it been there forever. And before you call the number, they have an -- always an advertisement; that's what they do for a living, and ifyou call that number, the advertising will say, "if you're interested in a job in the City ofMiami, please go to wwwcityofmiami.gov[sic] to look for opportunities. "I sent a memo two month [sic] ago and said why are we paying when the Manager issue the -- see, I have to always find a time to go on the air and all that, so I called that number, and I keep hearing this advertising and -- which we have to pay, by the way, and -- but yet, we have froze [sic] the hiring. And these are the things that probably are under the radar having you bigger issues than those. Like I have here the -- all the POs (Purchase Orders) of the Mayor's office, which I really compliment the Mayor for reducing the budget of his office, and -- by 24 percent, but in the last three years, the Mayor's office have issued PO for $3.6 million. It's here. And these are Publix, Ceramic on Wheels, Carmen's Landscape, Casa Manolo, Best Photo Lab, Exceptional Consulting; $130, 000 for education; Aramark Refreshment, $52,000. And that's what wanted to ask you, is about the culture of spending that we had had. And I know that's water under the bridge and all that, but it's important to tell the people where their money went. I mean -- I think you even had -- I mean, not you -- Happy Hour in MRC (Miami Riverside Center) every week or something like that just to enlighten the employees, right? Mr. Boudreaux: Well, Commission -- Commissioner Regalado: And don't take it personal. I -- Mr. Boudreaux: I understand, I understand. Commissioner Regalado: -- know you didn't -- that would be -- Mr. Hernandez: Commissioner, in essence, those are events that have been stopped and canceled because of the situation that we have. Commissioner Regalado: It's true. Mr. Hernandez: In time's past, they were done in order to, I suppose, develop employee morale and for the employees of the MRC. Commissioner Regalado: The morale is not that good now, but -- Mr. Hernandez: So are the times. City ofMiami Page 34 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Regalado: No. But I'm just frying -- because, I mean, transparency is important, and I'm just frying to say that there were a lot of expenses that the City lived as Beverly Hills, forgetting that we are in Miami, and that's a fact. The numbers don't lie. Here is the POs. Three million dollars in things that were bought through the Mayor's office, which were not from his budget, by the way, but anyway, that -- I just want to put that on the record. Thank you. Chair Sanchez: All right. Can we -- continue. Applause. Chair Sanchez: Folks, listen, let's refrain from clapping, cheering. Mr. Boudreaux: Commission, yes, sir, that does conclude my presentation of the budget. Chair Sanchez: All right. Commissioner Sarnoff Mr. Chair. Chair Sanchez: Yes, sir. Commissioner Sarnoff Michael, I just -- I want to first off thank you. I wanted to thank Larry, the Manager, and the Mayor. I think my wife was wondering where I was spending all my time, and I want her to know it was pretty much with you. And I'm surprised to hear that you go to Happy Hour; you never seem happy. Commissioner Regalado: I've never been there. Mr. Boudreaux: I'm very happy right now. Commissioner Regalado: Well, think about this. Chair Sanchez: All right. Commissioner Regalado: Have you been director of the budget in the County, you would have been 13 human beings on your case. You only have five here. Mr. Boudreaux: That's why I'm happy. Applause. Chair Sanchez: Thank you. We have the chair of the City ofMiami Finance Committee. Mr. Berkowitz, you're recognized for the record. Richard Berkowitz: My name is Richard Berkowitz. I am Chairman of the City ofMiami Finance Committee, and I'm joined by members of the City ofMiami Finance Committee, I think two of whom were here -- are here. Eli Feinberg just left; he had needed to go home; Humberto Rodriguez, Pablo Acosta, Linda Haskins, Sandor Lenner, and Diana Gomez, all of whom are appointees of yours. Mr. Chairman, thank you for having us tonight, Ms. Vice Chairman [sic], Commissioners, Mr. Manager. We issued a report and fried to sit with each of you -- or sat with each of you to go over our report. This is the culmination of about six months of study by the committee, and we come to you tonight -- it's sort of extraordinary. In the seven years that I've served on the City ofMiami Finance Committee, we have never appeared before you. We have rather spent time with each of you to discuss our concerns and to sit with you and fry to explain the issues that we were concerned about, but we appear tonight before you because our City ofMiami Page 35 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 unanimous report that we issued to you is of great concern to us, and we are enormously concerned about the City ofMiami and its finances. As you know, we are all volunteers. We're volunteer -- we're all professionals. We spend our time. You appointed us. We're grateful for that appointment. We all want to do something good for the City. We have no ax to grind, and we have no interests or bias, but we all meet on a weekly -- on a monthly basis to go over issues that are presented to us so -- that are of importance to the City ofMiami finances. We want to tell you that Miami's major pension plans are significantly unfunded, and this has been exacerbated by the drop in the stock market, but the numbers that I'm about to give you are as of last fiscal year. We don't have this fiscal year's information yet because the actuaries haven't worked on that, but as of fiscal year ended 2008, GESE was unfunded by $232 million; FIPO is unfunded by $433 million. The total of that is 665 million, and the City has no plan on how to fund those numbers. And we bring this to your attention tonight because with all of the difficulty you will have in dealing with Michael's presentation that he just made, this problem is going to get worse now and in the future, and it will only require much greater contributions than the $100 million that you're going to make this year. And this is not a political issue. This is simply a financial issue. It is a problem that will become a geometric problem. And, Ms. Vice Chair, you mentioned before that you don't want to vote on an issue which is -- you're going to come back next year and have the same issue or worst issue. This one's it. And we urge you to have the political courage to deal with this issue now. Your predecessors promised retirement benefits to be paid from the pockets of future taxpayers that are simply unaffordable by the City ofMiami, now and in the future. How it happened, why it happened is not the subject of this discussion by the City ofMiami Finance Committee. Our primary concern is the long-term health and viability of the City. We gave you several recommendations in our report, and there's no need for me to run through that list. You have those recommendations. We believe that every one of them is important. We applaud your decision regarding the Gates case. Chair Sanchez: Mr. Berkowitz, could you please put all seven of them in the record, please? Mr. Berkowitz: I'm happy to do that, sir. The first one is contracts that were negotiated in 2007, imposed cost -of -living increases and retirement benefits that are simply not sustainable by the City gill/Pamirs tax base in the future if the City wants to continue providing the current level of service to taxpayers. End defined benefit pensions for new workers. As many state and local governments have done over the past decade we're considering enrolling new employees in the Florida State Retirement System; (3) increase contribution by employees into their retirement pay; (4) eliminate the elected officers retirement trust for newly elected officials; (5) raise retirement ages and cap benefits to match practices in the private sector; (6) build inflexibility, renegotiate unreasonable pay outs and consider other material modification to the plans which reduce liability and not simply defer payments; (7) readdress the Gates decision. Decision by the courts 20 years ago were made at another time and another era. The world has changed. The City gill/Pamirs ability to sustain unreasonable financial contributions in the future must be addressed. We are concerned that the reserves that you have built up since 2001 will have to be used to address your budget problem, and we urge you -- and some people look at reserves to be used as a rainy -day fund, and for sure, it's raining. It may be a hurricane out there right now, economically. However, your use of those reserves will have impact on your bond ratings, your ability to borrow money in the future, and your ability to provide services. So rainy -day funds are for purposes that you cannot avoid. A budget problem is something that you should manage and not use the rainy -day funds for because there are lots of things that can happen that may require the use of those reserves. Your challenge is immense. This is a time for you to be heroic, to have courage, and represent us, your taxpayers and your constituents, because it -- unfortunately, you were elected to make the hard decisions, and it's a very, very difficult task. And it isn't necessarily about saving everybody's job. I represent lots and lots of employers in the private sector, and I can tell you that there isn't an industry that hasn't suffered -- that has not suffered layoffs, pay cuts, and other economic negatives that impact people. It's pretty universal out there. Most people are suffering economically, and this is not the private sector, but you cannot be immune from the economic storm that's going on, and you're going to have to City ofMiami Page 36 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 face the reality of dealing with the economic storm. Thank you very much. Chair Sanchez: Mr. Berkowitz. Mr. Berkowitz: Yes. Chair Sanchez: Let me take this opportunity to thank you and your board, who, as you stated, are volunteer, and you have worked six months on this -- on what you've done for the City in providing this report. Now, I thank you for just touching on some of the items that you wanted to address that were important, but I think it's important to focus on the reserves that -- every city should have a healthy reserve, and you stated that since 201 [sic], the City ofMiami has build a substantial reserve, which was -- ended up -- amount to $126 million. That is a very healthy reserve for any city. However, from September 30 to 207 [sic] through the current fiscal year that has ended in September 30, 209 [sic], the reserve has been used to fund the City's operating deficit, leaving a projected reserve balance -- and the end of September 30, 209 [sic] -- of $72 million. Now that is certainly a great concern to you. Mr. Berkowitz: You have utilized during the period of time for the fiscal years of September 30, 2007 until the fiscal year that will end in two or three weeks, you will use $54 million of your reserve, and you will have 72 left, and that's a projection of what your -- that's projected to include the deficit that you will have in September 30, 2009. If that deficit is, in fact, larger, then this reserve will come down, and it will be lower than $72 million. And you are approaching the point at which the Oversight Board said that they never wanted you to go to, and we concur with that. We believe that if you continue on this course and you don't make the hard decisions to balance the budget without utilizing the reserve, that the City will be heading back to where it was nine years ago. Chair Sanchez: Right. Also, very important here is the unfunded liability. Mr. Berkowitz: Yes, sir. Chair Sanchez: You know, you hear unfunded liability; people go "What is an unfunded liability?" The total amount, as of October 1, 208 [sic], is $665 million of unfunded liability. Could you explain what that is? Mr. Berkowitz: Yes, sir. This figure is provided by the City's actuary, and the City's actuary makes a calculation as to how much money will be necessary to fully pay all the future pensions that have been promised to all the retirees and all the employees of the City ofMiami. That amount of money that's required in the future to fund all of those committed retirements -- these are all retirements that the City is already committed to -- is -- you then subtract how much money is already sitting, funded in the trust for the employees. The 650 -- $665 million is the amount of money that is not there, so if you will, whatever amount of money is sitting in the frust today, actual funds -- Chair Sanchez: And we don't have. Mr. Berkowitz: -- the difference between that and what's promised is $665 million, and our concern for you is where are you going to find $665 million to fund that gap offuture promises verse [sic] the money you've put away now to pay for that? Chair Sanchez: And the other issue that I think we all understand that it's the issue that is holding us hostage here in the City is the Gates, which this Commission, through legislation, has directed the City Attorney to start a process to look into opening up Gates. Now the alarming thing about this report that you have put together, it states here that City of -- that it requires -- the Gates case requires the City ofMiami pension contribution for all of the plans to increase from $66 million for fiscal year 9/30/09 to $1.1 million by September 30, 210 [sic]. City ofMiami Page 37 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Berkowitz: One hundred and one million dollars. Chair Sanchez: Million dollars. This amount comprise over 20 percent of the budgetary revenue for fiscal year ending September 30. Now -- Mr. Berkowitz: That's correct. Chair Sanchez: -- if you look at our pensions from 2001 to present day, it has increased by 400 percent. Mr. Berkowitz: That's correct. Chair Sanchez: So based on your report, which I have had an opportunity to read it three or four times -- 'cause to me, it is alarming, and you are the City's financial committee, which I -- Mr. Berkowitz: Yes. Chair Sanchez: -- look at the names that are on your board -- and let me tell you, you have a lot of institutional knowledge of professionals that could give you -- give us that advice. So once again, I think you -- I wanted you to put those recommendations on the table because those are recommendations that we're going to have to look at, and I think the best thing that you've said today is we must have the political will and the courage to put an end to this, to provide fiscal responsibility to this local government because as you stated it, we cannot continue to pass the burden onto the taxpayers because what we're going to do is we are going to create a city based on taxation making people poorer than what they are today. So I take this report to heart. I'm glad you presented it to us. And based on your recommendations, they will be taken into consideration at the appropriate time. Thank you. Mr. Berkowitz: Thank you all -- Vice Chair Spence -Jones: Mr. Chair -- Mr. Berkowitz: -- for the hard work that you do. Commissioner Gonzalez: I do have a question. Vice Chair Spence -Jones: Mr. Chairman. Mr. Berkowitz: Yes. Commissioner Gonzalez: No. Go ahead, go ahead. Ladies first. Chair Sanchez: Vice Chair. Vice Chair Spence -Jones: First of all, let me thank Richard and the whole Finance Board for, you know, putting the recommendation together and also coming up and making a presentation and making it clear enough for us all to really understand what the issues are. I think a lot of times there is so much going on in City Hall and so many different agendas that are happening all at one time that we just don't get information as clearly as you were able to communicate -- just presenting to us right now. Mr. Berkowitz: Thank you. Vice Chair Spence -Jones: So I want to -- as volunteers, because -- again, you guys don't get City ofMiami Page 38 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 paid to do this. I mean, you do this because you want the best for the City, and you give of your time, so there's no other agendas but that. Mr. Berkowitz: We did get lunch a couple times, but they stopped that due to the budget problems. Vice Chair Spence -Jones: But do want to thank you because I think that it was important for us to hear it from that perspective as well. I do want to ask you, in your own professional opinion -- and it seems like the pension is the huge issue. That's the big gorilla in the room. Is that how you say it, the gorilla in the room? Commissioner Sarnoff The gorilla in the room. Chair Sanchez: The 800-pound gorilla. Vice Chair Spence -Jones: The 800pound gorilla in the room. From just your personal perspective, what -- if you had to make your own recommendation to us, you know, as board members sitting up here, what would be the first step that you think -- that you would advise for us to do regarding this whole pension issue? I just want to hear it fi^om your perspective. Chair Sanchez: I like your number -one, which is face the problem. Vice Chair Spence -Jones: Okay. Well, I want to hear it from him. Go ahead. Mr. Berkowitz: This is an enormously difficult political issue, andl think the Chairman is correct, that facing the issue is -- Vice Chair Spence -Jones: Well -- Mr. Berkowitz: -- the big step. Vice Chair Spence -Jones: -- we have no choice but to face it. We're facing it. Mr. Berkowitz: You do have a choice. You could avoid it. And frankly, it's been avoided for years and years and years, which has created the problem you're in now. Vice Chair Spence -Jones: Richard, I got to stop you on that. No. Like I said -- you remember how you made the presentation and you were very clear about what is -- what the situation --? Mr. Berkowitz: Yes. Vice Chair Spence -Jones: No. It's -- in some instances, we have not avoided it. Some instances we haven't gotten the full communication. Mr. Berkowitz: Okay. Vice Chair Spence -Jones: You know, you can't -- you know, we can't operate in a vacuum and not really have all the information. You know, you can't make a decision based upon not having all the truths, so I don't think it's necessarily that any of us avoided the situation. I mean, unless somebody else wants to raise their hand and say you avoided the situation. I'm not going to raise my hand 'cause I didn't avoid the situation. But -- I'm asking you -- we all know we got to face the music. We all know we have to make tough decisions. We all know that that comes with it. But want your own personal recommendation. If --just by what you've seen over the last four months, three months looking at this situation and giving us, you know, your own -- you know, the board's opinion about what needs to happen. What would be your first step, if you City ofMiami Page 39 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 know that we're facing a six hundred million plus whatever issue, what would you say is the first step that we need to be looking at? Mr. Berkowitz: I need to be consistent with what we've recommended. I think that all seven steps, you need to start the process of trying to accomplish each one of them. And there is no way that you can do this this year. This is not like the budget where you're going to balance it and then it's going to go away. I think that you have to have -- get together and have a plan on the steps that you're going to take over the next one year, two years, three years to effectively start the process of figuring out how this obligation is going to be paid -- Vice Chair Spence -Jones: Addressed. Mr. Berkowitz: -- during time, and it's a combination of several things. One, you don't want to add to it. You would like to reduce it, and you'd like to figure out a way in which somebody else can help you pay for it. And I think all of those are different steps that you have to take, and it's not something that you can sit and do tonight because you don't have any concrete proposals in front ofyou, but you do have the ability to start the process to make sure that you do have concrete proposals in front ofyou that you will have to make very difficult, political decisions to do. And it's going to be a commitment over time that the -- that all ofyou are going to have to have and be united in your effort to deal with this because over the long-term, if you fail to do that, that $100 million -- Vice Chair Spence -Jones: We're going to have a problem. Mr. Berkowitz: -- that you're having to face this year is simply going to grow. It is -- it won't go down. Even if the market goes up and there's -- some of that money -- some of the losses that you incurred are replaced, this amount of money will not be replaced just by an increase in the amount of -- an increase in market. So you must take steps to deal with it and have the political will to do that. Vice Chair Spence -Jones: Thank you, Richard. Chair Sanchez: All right. Any further questions? Commissioner Regalado: Just one. Mr. Berkowitz: Yes, sir. Commissioner Regalado: Richard -- Chair Sanchez: (UNINTELLIGIBLE). Commissioner Regalado: -- I remember you were my first appointment to the -- Mr. Berkowitz: Yes, sir -- Commissioner Regalado: -- Finance -- Mr. Berkowitz: -- and thank you very much. Commissioner Regalado: -- Committee, 14 years ago. But -- and you just said about the stock market, but how many years you and the Finance Committee and the City had known that this is an issue. However, it was being -- it was avoided because the market was good during the good years, but this is coming from Gates itself right? City ofMiami Page 40 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Berkowitz: It's a combination. I think that the drop in the market has certainly exacerbated the problem. There's no question about that. Gates ties your hands. There's very little you can do to change the structure of these pension obligations because of Gates. If-- even if you said you wanted to change this and your unions came to you and willingly said they would change it, you are still constrained by the Gates decision which will prevent you from doing so. So you really -- you have to open it up and go back. Commissioner Regalado: Thank you. Chair Sanchez: Thank you. Commissioner Sarnoff. Commissioner Sarnoff Mr. Berkowitz, I'm a maritime lawyer, so let me put a maritime analogy to you. Mr. Berkowitz: Yes, sir. Commissioner Sarnoff IfI hit a submerged object with my boat, would you agree the first thing I should do is probably stop the water from rushing in before I start bailing out? Mr. Berkowitz: Yes, sir. Commissioner Sarnoff So would you agree the first thing that this Commission needs to do is to stop creating pensions that are defined benefit programs? Mr. Berkowitz: That has been the course that most cities have taken over the last five to ten years -- Commissioner Sarnoff In other words -- Mr. Berkowitz: -- and it's -- because it's new employees, you're not making -- you're not reneging on your promise that you made to your former employees or your present employees; you're simply not going to give these types of pensions to your new employees. So that is something that has been pretty universal for most cities who have started to change the situation. Commissioner Sarnoff So if you were going to respond to Commissioner Spence -Jones, the first thing you'd do is plug the hole? Mr. Berkowitz: Yes, sir. Vice Chair Spence -Jones: It takes Marc to just break it down like that. That's what I was looking for. Mr. Berkowitz: He did it very well, Ms. Vice Chair. Chair Sanchez: All right. Any further questions? If not, I want to thank you and -- Commissioner Gonzalez: I do. Chair Sanchez: Well, I do apologize. Commissioner Gonzalez. Commissioner Gonzalez: Mr. Berkowitz, I also want to thank you and thank your board for the commendable work that you do for the City on a voluntary basis. On listening to you, would you say it's fair to assume that next year deficit could run around 150 million, $160 million? Mr. Berkowitz: I would invite the Budget director back up to opine on that, but he seems City ofMiami Page 41 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 wounded in his chair here. Chair Sanchez: But if you could predict that -- Mr. Berkowitz: But will tell you one thing, I really don't know enough to tell you that, butt will assure you that your pension contribution of the 101 million is likely to increase. Commissioner Gonzalez: Okay. And the next question is isn't dealing with the pensions and the Gates settlement, the most important thing among all of the steps that you recommended? Wouldn't you say that that is a primary --? All of the steps are important. I mean, I understood what you said. We have to work on all recommendations. But isn't it true that the Gates settlement and the pension is the most important of all seven recommendations? Mr. Berkowitz: Well, short of sinking the ship, as Commissioner Sarnoff suggested, I think that the -- probably -- the first step and probably the most -- the easiest -- none of this is easy, but maybe the most expedient step that you can take is what Commissioner Sarnoff suggested in terms of the future. However, you cannot change anything else, unless you do what you suggested, which is what you already apparently did yesterday or this morning in opening -- in suggesting to your council that they look into opening up Gates. Commissioner Gonzalez: Thank you, sir. Chair Sanchez: Which is clearly to -- and define benefits. Commissioner Sarnoff Thank you. Chair Sanchez: Okay. Thank you. All right. Mr. Berkowitz: Thank you. Chair Sanchez: At this time, what we're going to do is we're going to open it up to the public, all those who have signed in. If you have not signed in, please sign in with the City Clerk. Thank you very much for that presentation. Ms. Thompson: Excuse me, Chair. In order for me to save some money, I'd like to find out ifI have anyone here that needs interpreters. Chair Sanchez: Does anyone need an interpreter? Vice Chair Spence -Jones: Say it in Spanish. Chair Sanchez: If not -- Vice Chair Spence -Jones: Say it in Spanish. Chair Sanchez: Okay. All right, I don't believe we need an interpreter. Vice Chair Spence -Jones: Say it in Spanish. There might be somebody in Spanish. Ms. Thompson: Spanish or Creole, we don't need any? Chair Sanchez: Nope. Ms. Thompson: Thank you. City ofMiami Page 42 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Okay. All right. Vice Chair Spence -Jones: Remember, I told you I wanted to talk first. I had something I wanted to say. Chair Sanchez: Okay, we'll go ahead with the first speaker. Fernando Gonzalez. Oh, please excuse me. You're not done? Vice Chair, you're recognized for the record. Vice Chair Spence -Jones: Well, Mr. Chairman, originally, one of the things I've been speaking to the Administration about all day actually, trying to figure out whether or not we've had enough information to really decide as to what we need to do next on this budget. I do want to at least say that -- and Mike, I didn't mean to wound you. That wasn't my intention. You have done as much as you can to, you know, get us prepared as much as you can, and same thing with the City Manager. But we were going back and forth earlier, Mr. Chairman, about whether or not this item needed to be continued until next week, and I think that it's -- after sitting here and listening to all different sides, I think it's just best that we do -- go ahead and just hear everything out and allow for everybody in the room to be able to say what they need to say today. We've already kept them for three or four hours, and I don't want to keep them any longer. So I would prefer for us to just go ahead and deal with it. Chair Sanchez: All right. Okay. I will be calling you by your name, and I'll -- usually will call maybe five or six individuals to come up. You'll have two minutes to address the Commission. Please keep it to the millage or the budget. All right. So we'll start with Hernando Gonzalez, Armando Aguilar, Carlos Avila, Charlie Cox, Mariano Cruz, and Evelio Sarda? Okay. You're the first speakers. Fernando Gonzalez: Okay. Chair Sanchez: All right. Mr. Gonzalez: Okay. Chair Sanchez: Sir, you're recognized for the record. Mr. Gonzalez: Okay. Good evening. My name is Fernando Gonzalez. I'm representing East Little Havana. We have community nonprofit organization over there for 19 years, a real nonprofit organization because this nonprofit organization never, never ask for money to the City ofMiami or the Dade County. We work with the private sector. And also, I am the owner of International Produce Import, and all the commodities and produce that I bring from another country, ifI cannot sell it to the several private business, I take into the organization, and we give it to the people over there or sometimes we sell it for a cheaper price in order to keep the program working and doing the program because we have to pay for gas, truck, and transportation, whatever, a lot of things over there. At this time a lot of people are going to our office. Men like you and me and everybody and said, "Please, let me work over here to take some food home because it's only my wife working or my son; or we have nobody working and we don't have nothing to eat at home." And if you go over there, you're going to see what is the reality and what is happening now. After I heard what I see in this chamber, I believe that what happened to the City ofMiami is because they had too many employees. They have -- you have to do sacrifice, I don't know how, but your friends, the people who you have in your side making a lot of money over here, there is no time to, you know, have that kind of quality support. There is a lot of people in poverty. If you go into the neighborhood -- go in the neighborhood, let's work together around over there. And let's -- going to asking the people the situation -- Chair Sanchez: Thank you. City ofMiami Page 43 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Gonzalez: -- how the situation is. It's terrible, people. The only way -- Chair Sanchez: Thank you, Fernando. Fernando -- Mr. Gonzalez: Give me a chance, please. The only way is, Commissioners, please, the good intention is the only thing what the -- our people are looking for. Chair Sanchez: Thank you, sir. Commissioner Sarnoff Mr. Chair, point of privilege. I know that some people have asked me what is the vase that's in front of me, and what this is is a descriptor of our salaries here in the City ofMiami. This is our unclassified, this is Fire, this is Police, and this is the general employees. This is based on the actual dollar value that they cost you as taxpayers. Chair Sanchez: Okay. All right. Sir, you're recognized for the record. Armando Aguilar: Good afternoon. Chair Sanchez: Thanks for clarifying that. Commissioner Sarnoff In case you were wondering. Mr. Aguilar: You know, somehow I figured that's what it was. Armando Aguilar, president of Miami Fraternal Order of Police, 710 Southwest 12th Avenue. Good afternoon, Commissioners. Many things have been said here today. I want to clarify that for the last two years, we've been negotiating with the City in an attempt to resolve some of the pension issues. It is now becoming a little bit clearer to me that the City has wanted it all all along. We have even suggested going into the Gates lawsuits on a couple of occasions, on a limited basis, to reduce the City's pension cost. Until last week, which was the last time I met with the Manager, the Manager actually asked for us to concede to about $4 million in concessions. I made him an offer that dealt with the pension from going to aggregate cost to entry (UNINTELLIGIBLE) that would have saved them approximately $7.6 million. Obviously, that wasn't to his liking, and we ended up not agreeing with each other, agreeing to disagree. From 4.2, I think that it was what he asked for, now all of a sudden we find ourselves faced with 177 layoffs of police officers. Clearly, it's nothing more than a punishment because 177 police officers add up to a lot more than $4 million. Another curious thing is if you really do the numbers, out of the 191 that are supposed to -- positions that are supposed to be closed, it would lead you to think that we only have 14 vacant positions and that we're going to layoff 177 police officers. Well, the fact is, we have 79 vacant positions. That has never been said. I don't why the 14 came up. We actually have 79 vacant positions right now. We've had a hard time in dealing with the Administration. This is the budget that was turned in, the latest that I can remember, but back in June, in May, when we were trying to sell the baseball stadium to the public, we were saying the City was financially sound -- Chair Sanchez: In conclusion. Mr. Aguilar: The Mayor was jumping up and down saying how financially sound the City was. When he went to New York for the bond rating, in New York; came back -- sounds like the movie "Mr. Smith Goes to Washington" -- and said the City was financially sound. We got an A 1 rating, and that the City was in solid shape. Even wrote an article to The Herald. Now, they rush our budget through, and a few weeks later, they're saying we're $118 million in the hole. I don't know which Manny Diaz to believe. I'm having a hard time with that. And I've had problems like that with the Administration before. And it's hard for us to give in because we've given in the past, and then we found out that things remain as usual. It's hard for us to turn around and give when we don't know if they're being truthful to us. In closing, I'd just like to say City ofMiami Page 44 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 that I think it's very irresponsible to lay off 177 officers. We have worked so hard to get these officers out on the sfreet 'cause we were so short before. And to now take them off the sfreet at a time when you can't even pray at church and be safe, I think is totally irresponsible. Whether it's as punishment for us not agreeing to something or not, you're doing a huge disservice to your citizens. Thank you. Chair Sanchez: Thank you. Commissioner Sarnoff Mr. Chair, can I address --? Armando -- Chair Sanchez: Sure. Commissioner Sarnoff -- can you come back up? Mr. Aguilar: Yes, sir. Commissioner Sarnoff Sitting in my shoes, where would you cut? Mr. Aguilar: Well, sir, I'm not sitting in your shoes -- Commissioner Sarnoff What -- Mr. Aguilar: -- but -- Commissioner Sarnoff Right, but just tell me what -- Mr. Aguilar: -- the problem is that this budget is being rushed. You should have had ample time to look at where you could cut. Yet, this budget was given to you about two days ago, and I think it's unfair to you because right now we're finding little irregularities as we go along, such as what I just finished saying, having 79 open positions when, in fact, we're only talking about 14. Little things like that that I guess you're going to find out as you go through this process. Heaven knows what else you're going to find during the process had you had this budget in a timely manner. Commissioner Sarnoff But the number that the Mayor asked you to cut was what number, 14? Mr. Aguilar: Approximately $4 million. Commissioner Sarnoff Four million dollars. Mr. Aguilar: Not 14. Commissioner Sarnoff Four -- Mr. Aguilar: Now all of a sudden, as punishment they're savings 14 million by firing 177 officers. Commissioner Sarnoff Okay. Thank you. Mr. Aguilar: Thank you. Commissioner Regalado: Armando, of those 12 millions, in some of the meetings with the Manager, did you agree to continue to discuss any numbers? 'Cause the notion is that you're saying no to everything. Is that --? City ofMiami Page 45 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Aguilar: No, not at all. Commissioner Regalado: The Manager -- Mr. Aguilar: The notion is I said no to the things he suggested, which was giving up the raise and doing the furloughs. I looked for other ways of saving the money, but that wasn't acceptable to him either. Commissioner Regalado: But is it -- Mr. Aguilar: I have never said no to negotiations. I will negotiate until I'm blue in the face. Commissioner Regalado: No. But my question is do you think it's possible that the FOP will give in some of the monies that are being requested from you? Mr. Aguilar: Well, as I said before, I've been always willing to look at the pension costs. I think it's -- you know, right now it's not a hundred million for us; it's 55 million, which is still a tremendous number for this year. It's estimated to be about 71 million for next year for Fire and Police. I've always wanted to look for ways to lower the pension costs. Obviously, I want this pension to last forever. I want the City to last forever. But one thing is looking at pension costs and another thing is hurting the employees that work so hard, especially the retired ones. We have many retired officers that make more money on their COLA than they do on their retirement because their retirement's only about 12 or $15, 000 a year, and that's one of the first things the City wanted to take away, and that's just something I'm not going to agree to. I'm not going to hurt the retirees that spent their career here without getting killed in the line of duty and are now going to lose their cost of living increase because of the pension costs. I'm willing to look at ways to lower that pension costs, and I'm open to suggestions, but not at their expense. Commissioner Regalado: But you will be able -- would you be ready to talk about ways to save money in order not to get those 177 officers fired? Mr. Aguilar: Well, I have already given the Manager a number of different ideas. Obviously, those ideas are going to take time because it requires reopening Gates. But it's falling on deaf ears, and time after time we fry to come up with new ways and new ideas to fry to resolve this issue, and so far it's falling on deaf ears, as I said. Chair Sanchez: Mr. City Manager. Pedro G. Hernandez (City Manager): Obviously, he sees things a totally different way. I have to disagree entirely, entirely. As a matter of fact, I feel that he's been ignoring us and has been extremely, I would say, arrogant in dealing with us. Okay. Chair Sanchez: All right. Mr. Hernandez: And when he talked about a proposal to help us in bridging the gap, he's talking about going from an aggregate method to an entry age that is supposed to save us six plus million, but at the same time, he was asking in exchange for us to provide retroactively a three percent and one percent and one percent, total of five, that was lost because we didn't meet pension stabilization. So, in essence, when you subtract that raise in these times against the potential savings of changing the cost method, you end up netting a million -plus. That's [sic] doesn't help us now. We have two issues. We have the issue of the budget today that we need their cooperation, and then we have the issue of the pension in which we also need their cooperation. I think that we have to focus, number one, on the budget, getting the issue of the budget resolved. I need to have their cooperation to be able to bridge this gap, the same way that I need every other union. We have a 28 million knot to deal with that I'm counting on them City ofMiami Page 46 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 to be able to balance this budget. Right now it's contingent on their help. And between the two AFSCMEs, it's about eight million. I need ten from Fire and ten from Police, and he knows exactly how I need that ten. Now, I've never -- Mr. Aguilar: Before you asked me for four. Mr. Hernandez: For four? Mr. Aguilar: Yes. Mr. Hernandez: But, in essence, what did you give me, a net of one? Mr. Aguilar: No, sir. Mr. Hernandez: We need your full -- I need your full cooperation -- Mr. Aguilar: That wasn't -- Mr. Hernandez: -- to go forward on this. Mr. Aguilar: What you said was that not what we finally discussed. I said I'm willing to take part of those raises 'cause those raises were contingent about controlling the pension costs. I said I'm willing to take a portion of those raises, not take them refroactive so that you could realize your savings when we do the bulk of the pension stabilization, then we deal with the refroactive raises which are due to us as part of this deal. And as far as not wanting to meet with you, the only time I haven't met with you that you've asked for was yesterday -- Mr. Hernandez: Well -- Mr. Aguilar: -- 'cause I was busy yesterday. Mr. Hernandez: Armando, the problem is that every time that we sit down, in essence, you know, we ask and we talk and you just don't react, and you want to only offer certain things that -- Chair Sanchez: We're going to -- Mr. Hernandez: -- in essence, are not helping. Mr. Aguilar: Well, I just don't say what you want to hear. That's all. Chair Sanchez: All right. Listen, let -- you're going to continue to negotiate. Armando, I just want to ask you a question. Where do you come up with the 55 million? I -- that's -- where do you come up with that? Mr. Aguilar: The 55 million is the cost for this year, for the pension, for the FIPO. Chair Sanchez: For the FIPO? Mr. Aguilar: Yes, sir. And it's a projected that we have a five percent loss because, obviously, it's a projection; we still haven't finished this year; that for 2010, 2011, it will be approximately 71 million. I've given the Manager those numbers. They came from our actuary, so I'm sure he's going to agree with them. Commissioner Sarnoff That's 20 million worse. Twenty million worse next year. City ofMiami Page 47 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Aguilar: I'm sorry? Commissioner Sarnoff That's 20 million worse next year. Mr. Aguilar: Yes, sir. Remember, we're always a year back -- Chair Sanchez: All right. Mr. Aguilar: -- so next year is going to reap the losses of this year. Chair Sanchez: Thank you. Vice Chair Spence -Jones: Okay, I got a -- Chair Sanchez: You got a question? Vice Chair Spence -Jones: Yeah, I got a comment. Let me -- Chair Sanchez: Charlie, you're next. Vice Chair Spence -Jones: -- ask this question, and I don't know if you got a chance to see the editorial today, butt wanted to ask the Manager just so that I'm clear. Part of this article talked about nearly 500 jobs would be saved and not one officer would be laid off. Did you see this article today that --? Mr. Aguilar: Yes, ma'am, I did. Vice Chair Spence -Jones: What -- has this scenario been offered to you, as well, Armando? Did you hear this scenario before you saw it in the paper? Mr. Aguilar: Well, first of all, the first time I ever even found out about officers being laid off was when I saw the budget. Vice Chair Spence -Jones: Yeah. Mr. Aguilar: That was never part of the discussions. But other than that, he did ask me for $4 million, and all of a sudden, $4 million turned into 177 officers, which obviously, the numbers don't add up. Vice Chair Spence -Jones: Okay. Mr. Hernandez: Well, obviously, you were not paying attention. Vice Chair Spence -Jones: But -- okay, guys, guys, guys. Let me just say -- I just want to be clear. Mr. Aguilar: I was paying attention. Vice Chair Spence -Jones: I want to be clear of this one statement because what I see here in the paper, it says if the union agrees to the Mayor's plan, nearly 500 jobs will be saved, not one officer would laid off. Do -- Mr. Manager or Mr. CFO, do you know how we got to this statement here that I'm seeing in the paper? And Armando, are you aware of this statement and how they got to this point? Mr. Aguilar: No, ma'am, I'm not. But we did do the calculations when we met the last time. As City ofMiami Page 48 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 a matter of fact, Larry was there and Mr. Boudreaux was there. We did the calculations to see how we could come up with $4 million. Now the Manager says I wasn't listening. We actually did the numbers to see how exactly we could get to $4 million. I don't know what else to tell you. Vice Chair Spence -Jones: Okay. So, Mr. Manager, can you tell me how you got to not one officer laid off? Mr. Hernandez: Okay. It's based on the, let's say the police contributing. If they contribute their ten million figure that I talked about, there is no impact to any officer or anyone in the Police Department, period. Vice Chair Spence -Jones: And you're expecting to get to that by pay increases and --? Mr. Hernandez: It's basically in the memo that I sent Mr. Aguilar, as well as the other union leaders -- Vice Chair Spence -Jones: I know, but we want to hear it here. We want to hear it -- Mr. Hernandez: -- that it's a reduction on a tier scale approach -- Vice Chair Spence -Jones: Okay. Mr. Hernandez: -- of their salaries. Vice Chair Spence -Jones: Okay. Mr. Hernandez: It's a reduction of salary -- Vice Chair Spence -Jones: Okay. Mr. Hernandez: -- in a tier approach. Vice Chair Spence -Jones: Okay. Mr. Hernandez: It's a -- an elimination of the October 1, '09 projected salary increase. Vice Chair Spence -Jones: Okay. Mr. Hernandez: It's an elimination of the longevity for 2010 and an elimination of the anniversary for 2010. It's four components. Vice Chair Spence -Jones: Okay. So I just have to ask you, Armando. I mean, the -- obviously, this communication hasn't -- you guys haven't been able to sit down and hear this overall proposal. Mr. Aguilar: No, no. That, he did tell me -- Vice Chair Spence -Jones: Okay, so -- Mr. Aguilar: -- that he wanted that, and I came up with a different solution -- Vice Chair Spence -Jones: Okay. Mr. Aguilar: -- that he didn't like either. City ofMiami Page 49 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: Okay. Mr. Aguilar: But it did come out to the same thing. This is the first time I hear about the two [sic] million because the last thing he said was can you give me at least $4 million, and that's when this conversation took place. Vice Chair Spence -Jones: Okay. Mr. Hernandez: (UNINTELLIGIBLE) you didn't get it. Vice Chair Spence -Jones: But I'm hearing right on the record now from the Manager the things that he's discussing now as possible options that will at least equate to not one officer being laid off 'cause that's extremely important to us 'cause we can't afford -- I know, in my district, I can't afford not to have enough police officers. I mean, already I don't have enough, okay. Mr. Aguilar: I'm willing -- Vice Chair Spence -Jones: So -- Mr. Aguilar: -- to continue to talk to him -- Vice Chair Spence -Jones: -- my question -- Mr. Aguilar: -- but those options are not viable. Vice Chair Spence -Jones: Okay, so -- that's really what I wanted to get to. Mr. Aguilar: Yes. Vice Chair Spence -Jones: So what they're mentioning -- what the Manager's mentioning regarding the tiered pay -- Mr. Hernandez: Pay cuts. Vice Chair Spence -Jones: -- cuts, the -- no salary increases this year. Chair Sanchez: Longevity. Vice Chair Spence -Jones: No longevity, and what's the other thing? Mr. Hernandez: And no anniversary. Vice Chair Spence -Jones: No what? Mr. Hernandez: No anniversary. Vice Chair Spence -Jones: No anniversary for this year. Mr. Hernandez: For 2010. Vice Chair Spence -Jones: That would mean not one officer laid off. Mr. Hernandez: Exactly. Vice Chair Spence -Jones: Okay. Now, I just got to ask this, and -- I just want, in the end of all City ofMiami Page 50 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 of this, Armando -- because I think that Armando has to be commended for taking care of his people. That's what he does; he takes care of his officers. I just want to at least leave with you -- and I'm going to say it to everybody that comes up that's going to have some sort of fiscal impact on what we're frying to do for the City, that we try to figure out a way to work together. It's obvious that there's some serious bad energy or bad blood, and we could see that on the dais right here. But want us to reach -- I'm going to say this not only to Armando and to whoever else is going to come up, but also to City staff and the Manager, that we fry to find a happy ground or try to find some sort of compromise because in the end -- I'm saying this to both parts. You saw me talk earlier -- going off earlier aboutl think that there's other things that one could do to address this issue. I think the Administration needs to do more. I think that there has to be more room to do something else, but at the same time, I got to be able to say the same thing to you as well and everybody else that has to stand up here. When I see City employees -- I don't care what form of a City employee that may not be able to wake up the next morning and go to a job and take care of their own family -- when one person hurts in City -- I think in City government, we all should hurt. We all should be affected one way or another by it. So I'm not too proud to beg. I'm willing to beg and make an appeal to you. Nobody else probably want to beg, but I'm going to beg because to me, it's worth it to beg. Mr. Aguilar: No. The problem is the inconsistencies. Vice Chair Spence -Jones: Let me do -- I know, but let -- I don't care how y'all come to your agreement, but I'm going to say, I ain't too proud to beg. I'm begging you, Armando, and the Manager, to please figure out a way to work through this. That's all I'm asking. You know, I am pleading with you. I'm pleading with the Manager to look beyond all of our differences to figure out how we're going to take care of all of our people. That's really it in the end. I know you want to take care of your officers. I'm with you 100 percent. I believe the Commissioners are with you 100 percent, but the reality is we got to make sure those little people -- those green shirts stand up. These are the folks that -- Applause. Vice Chair Spence -Jones: One second. Don't clap, don't clap, don't clap. The green shirts, stand up. These -- a lot of these people have had second and third chances now. They out on the streets every single day dealing with homeless people. Their budget went from $650, 000 to $90,000. And we all know sitting in this room and watching on TV that the homeless situation ain't going to get no better. I'm saying to you, Mr. Manager. I just don't -- I guess that podium - - you were there at the podium -- just makes me look over there. I'm saying it to you too, Mr. Manager. We cannot afford to be in a situation where we already know that not just from the City, the County and everywhere else, everybody's going to be cutting. You think we have a homeless problem. Just wait and see. So I'm saying to you, Mr. Manager, them $11 million that we talked about in the grant; to you, Armando, you guys look beyond y'all personal differences and let's try to figure out a way to get there. I'm begging you guys. I'm pleading you guys. Because I'm not just talking about -- I got to say this about four or five other programs. We just can't afford to have that happen. So with that being said, that's all wanted to really say to you guys. Please find a way to work through it. Mr. Aguilar: I'm always willing to meet. Chair Sanchez: All right. Thank you. Mr. Aguilar: Thank you. Chair Sanchez: Next speaker, Charlie, followed by Mariano Cruz, and Mr. Sarda. Charlie Cox: I come before you today to show you some ways in the City besides just -- about City ofMiami Page 51 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 attacking the unions. We do not run this City. You, the Manager, and the Mayor, and all the directors and assistant directors run the City. You continue to attack the benefits we have bargained for. You fail to recognize all the monies that are being wasted by management. If you recall years ago, you approved either 8 or $9 million for Oracle to replace more systems. The director came before you on at least two occasions and asked for millions more. Most of the Commissioners questioned the additional costs, but to and behold, you approved more monies not once, but twice. I realize some of the Commissioners on the dais are blaming the employees for everything and all the money problems in the City. This is just not a fact. Just have management put on the record how much money they have spent on consultant and how many years they have paid their big companies big bucks to get this system in place, which is nowhere near completion. The goal and implementation of ERP (Enterprise Resource Planning) was automated previous manual process and make affected departments more responsive and more efficient and reducing duplication of effort, streamlining operations, simplifying process, eliminating or reducing paper, and reducing reliance on IT (Information Technology) for report generation and information. ERP appears to have been implemented in a planned vanilla approach that did not consider unique and specific requirements of the union contracts. Implementation has effectively resulted in a loss of functionality, a downgrade in performance from the previous system, and increased reliance on IT for day-to-day uses. Many policies are now being done manually instead of being automated. Manual process often results in errors inconsistencies. After going on line in June 2009, many processes are not still working properly. Some people are not getting the correct amount of pay and some deductions are not correct or working at all. It is difficult in some and whether the processes are implemented or whether users have not been trained. Consultants have been hired from various staffing companies that do not have any investment or ownership or responsibility for the success of the system. Vice Chair Spence -Jones: Charlie, you have somebody else who's going to give you their two minutes 'cause you --? Clerk is looking at me. I know we just hit the two -minute mark. Is there anybody else you -- that -- anybody with you, Charlie, that can give you an additional two minutes? Mr. Cox: No. Commissioner Regalado: Madam Chair -- Vice Chair Spence -Jones: Yes. Commissioner Regalado: He's been told that he's the third of the problem of the City ofMiami. Vice Chair Spence -Jones: No. Listen, I'm -- Commissioner Regalado: I think he deserve -- Vice Chair Spence -Jones: And, Commissioner Regalado, you know I support Charlie Cox, and I support all of that -- Commissioner Regalado: I know you do. Vice Chair Spence -Jones: -- but I'm trying to follow process, so I just want to make sure whatever I afford him, I afford every other resident, so I got to be fair. So I'm just asking Charlie Mr. Cox: I have one more -- Vice Chair Spence -Jones: -- if -- you have somebody else that's here with you. Can he give you your two minutes? That's all. 'Cause I don't want nobody to complain later -- listen, I don't City ofMiami Page 52 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 want anybody complaining later, Charlie -- Mr. Cox: No. I understand. Vice Chair Spence -Jones: -- that I allowed for, you know -- Mr. Cox: I understand. And I don't -- Vice Chair Spence -Jones: That's all I'm trying to do. Mr. Cox: I understand. Vice Chair Spence -Jones: Go 'head [sic]. Mr. Cox: Once the consultants leave, can the City personnel continue interrupted operations to the ERP system? I could tell you that this is just one of the things with the consultants. I have boxes and boxes of where money's being wasted, and the only way I can get it out is being going to the press. And listen, I've spent 35 years of my life in the City. I was born in Jackson Memorial Hospital. I spent till third grade in the City ofMiami, and I moved to the southwest section. This City has been good to me, don't get me wrong. And I make a good living, better than most, but it is not fair to continue to blame -- I can do so much, and I have fried, but no matter how much I do, it's never enough. Vice Chair Spence -Jones: Yeah. Mr. Cox: And enough is enough. And the only way I could fight back is by proving what a lot of you already know, that it's not the employees that go to work everyday and paint the walls. You've lost a whole paint crew. Who's going to paint your pools? Who's going to paint City Hall? Are we going to privatize everything? And then you say you're going to save money. Those businesses have to make money. They have to make a profit. Everything you privatize is going to have to have a profit to it. Thank you. Vice Chair Spence -Jones: Thank you, Charlie. Commissioner Regalado: Charlie -- Vice Chair Spence -Jones: You're recognized. Commissioner Regalado: IfI may. Just for the record, on this process this afternoon, you have been praised, even by the Manager, that you have been in cooperation with management. Just for the record so the people understand, what have you offer, what have you proffer, what solution have you given --? Mr. Cox: We would take the 3 percent raise and go from 10 percent contribution to our pension to 13 percent. Anybody that's in the DROP (Deferred Retirement Option Plans), like myself would not receive the 3 percent raise. We would defer the longevity and the anniversary increases, like they asked us for. We asked them to look at doing some type of buyout for the people in the DROP. We're the ones to make the most money. Vice Chair Spence -Jones: Have they done that, Charlie? Mr. Cox: No, they have not. Mr. Hernandez: That's -- no. That's in the works. We have identified all the employees, and Larry Spring is working on developing a plan. And as a matter of fact, it was suggested initially City ofMiami Page 53 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 by Charlie, and we're working on it. Vice Chair Spence -Jones: Does Larry -- has Larry given you any updates, Charlie? Mr. Cox: No, no. Vice Chair Spence -Jones: Mr. Manager, is Mr. --? Mr. Cox: Other than that he said he was working on it. Mr. Hernandez: No, no. He's work -- Mr. Cox: I will tell you that I've been through two of these things before, and what we did was enhance people to leave the City, and that's the ones with the most seniority, both when the Oversight Board was here and before the Oversight Board was here. The first one we offered a 5 percent retroactive for a year; we lost 101 people. The second one we offered a hundred -- we offered 10 percent refro for a year; we lost 248 people. And those are all the senior people that are the highest paid. I will tell you Commissioner Sanchez said that -- on the record last meeting that our average salary is $56, 000. That is not true. Our average salary is $53, 400, so we are not -- and I just ran those records today from our last payroll. But can tell you that we have tons of City ofMiami employees that are not getting the right pay checks, and things are going wrong. And if you can't pay your people the way they're supposed to be paid, then you have a problem. Vice Chair Spence -Jones: Mr. Manager, can I just ask quickly, have you -- just as I asked the Police union, have you and Charlie Cox's group, have you guys come to -- have you come to a consensus that you think that can perhaps work? Mr. Hernandez: I would say, Commissioner, that we're extremely close. In essence, Charlie, the issue of salary reductions, do you agree to the tiered salary reductions? Mr. Cox: Not on top of everything else. You all have to remember, I have to take it back to my membership and if they don't ratify it, what good have I done? That's the key. When you're asking my membership that's the average of 56 -- of $53, 000 to take an 8 percent increase -- decrease, you know, that's over and above -- going back five years -- six years ago -- and you know, everybody wants to blame what we did. Did you ratify the contracts? I took a two, two, two in the biggest years of the City. That's all I took. And a 7 and the 8 step for longevity steps. I didn't -- I don't know where they're getting that we broke the City by our last contract. That just can't be. It can't be when you take a two, two, two retroactive. And they raise this issue of only three, three, three, and I'm willing to defer those. I also was the one, with our actuary, design the $7 million -- $6.9 million from our pension for y'all, and you know what? Is the market turning around? Not four years ago, we were 121 percent funded, and if you think the market didn't drive all of this, it did. The market drove all of it. So it's a defined benefit. Are you all paying now? Yes. And you know what? I wish I could go back because we forgave, under Gates, $97 million, $97 million that the City would have had to pay. I wish I could go back now and say the market never crashed, but even when it crashed the first time, we were still above 100 percent. Now we're -- I don't know where they're getting the figures from, the Financial [sic] Committee, but we're still 81 percent funded last year and we will be more funded this year. Vice Chair Spence -Jones: Mr. Manager, are you a little -- are you closer to come to finding a -- do you think that you're closer to finding a resolution, Charlie? Mr. Hernandez: Well -- City ofMiami Page 54 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Cox: I don't know. Mr. Hernandez: -- there's only -- it's -- the only pending item that we have is the one dealing with -- Vice Chair Spence -Jones: The tier. Mr. Hernandez: -- a tier salary reduction. Vice Chair Spence -Jones: Okay. Mr. Hernandez: And also, I know that a main concern of Charlie is the fact that he wants to be able to keep and he's conditioning his support on being able to keep the 87 employees that are now being impacted out ofAFSCME. I have to -- I have -- correct? Mr. Cox: Yes, absolutely. Vice Chair Spence -Jones: But that -- and I want to make sure that -- Mr. Cox: And I want to tell you -- Vice Chair Spence -Jones: -- we're not respected -- Mr. Cox: -- something, 67 of those people are used for him to say that he balanced the budget. Vice Chair Spence -Jones: Right. Mr. Cox: Those 67 are in your budget, correct, that you used to balance your budget or to get it down. Mr. Hernandez: I think it's 87. Mr. Cox: Oh, now you're using the 87. Mr. Hernandez: It went up. It went up, Charlie. Mr. Cox: Oh, okay, so now they're using 87 to balance your budget. Vice Chair Spence -Jones: But, Charlie, let me ask this question, and I want to make sure we get the other people's -- I'm just hoping that, again, the same thing I just asked with the -- with Police to do, I'm asking for you guys to -- Charlie has almost bent over backwards. He's almost broke his back trying to make things happen, and I just don't want all of this to be on the back of those City employees. My question becomes, I really -- well, not even question. My direction would be please try to find some form of compromise. I think this suggestion that was made earlier about the DROP and looking at that as an incentive, maybe we can reduce that of employees now that will be impacted because some of them may take, you know, the option of leaving, you know. So I'm just asking that Charlie and you guys work together on addressing that, and at least come back with a better resolution by the time we meet the next time. Mr. Hernandez: Commissioner, we'll be -- I'll be more than glad to continue to work with him. They've been very forthright, and we'll look for more creative solutions. Vice Chair Spence -Jones: No problem. I'm officially -- Commissioner Regalado: But just -- City ofMiami Page 55 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: -- turning the meeting over to Commissioner Gonzalez. Commissioner Gonzalez: All right. Charlie, are you done? Commissioner Regalado: I have a question, Chairman. Commissioner Gonzalez: Yes, sir. Go ahead. Commissioner Regalado: We're told that we have to like vote on a tentative budget. Number one, this budget is not balanced because this budget has promises, not numbers, promises that he will cooperate, that Armando will cooperate and -- you know, the unions and -- the main piece, but that's okay, that's okay; it's a tentative budget. The law doesn't say that we need to have a budget today. This is not balanced at all, but you guys keep saying, okay, we're going to discuss, we're going to discuss. How long? I mean, there's got to be a timeline. Mr. Hernandez: Commissioner, my understanding is that you could have a sfructurally balanced budget with contingencies, and in essence, the union contributions, as we see it, which make up the 28 million, are contingencies that we can use to sfructurally balance the budget, and that's my understanding -- Commissioner Regalado: No, no. Mr. Hernandez: -- from Legal. Commissioner Regalado: I understand. We -- today we aspire to have a balanced budget, but that wasn't my question. Question is how much time you need -- like this workers on the DROP. Now you're considering this, but this should have been considered -- it happened. I remember during the Oversight Board. I remember that they -- the Oversight Board and this Commission said, you know, those people in the DROP, those people with the higher salary, long time, we need to incen -- give them incentives so they can just retire and other people move up. So now, today, on the first hearing, we are just deciding that we're going to study that. I just want to understand if there is a timeline that you, Mr. Manager, have set because, after all, the 24th is just like three or four weeks ago -- I mean, away, and -- Mr. Hernandez: Obviously, Commissioner, we would need to have it in place or have a good idea, more than just a promise, on the 24th. The issue -- Larry has already a complete list of everyone that could be a candidate, but you have to look at the financial aspect of it because when people exit, they will also be receiving payments for accrued vacation, their percentage of ill time, et cetera, so we have to develop a -- an offer, an incentive that is balanced, that will work for the City and result in savings. Commissioner Regalado: And you have -- you had money -- salary atfrition was budgeted at $21 million in this year. However, salary attrition has been budgeted in this year only at five million, so the reason -- Mr. Hernandez: Commissioner, that's based on -- we have eliminated almost every vacancy that we have in the City, and atfrition is fed by the vacancy, so when you have almost no vacancies, your attrition has to come down. Commissioner Regalado: Right, and I understand. So why the five millions? I mean, there's no more positions to eliminate. Mr. Hernandez: Well, you know, there will be still be turnover, and we figure that five is an adequate number for the budget that we have now versus what we had before, the 18 to 21 million before. City ofMiami Page 56 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Okay. Thank you, Charlie. Next speaker, Mariano Cruz, and I believe you've been given Mr. Sarda's two minutes. Mariano Cruz: He -- (Comments in Spanish not translated). Chair Sanchez: Sir, you have four minutes. Believe me, you could say what you want to say in four minutes. Mr. Cruz: First, Mariano Cruz, 1227 Northwest 26th Street. I'm going to be kind today; have time to say hello. Usually, I don't have time to say hello to anybody. Hello, Tomasito. Hello, Marc. Hello, Joe. Hello, Angelito. Okay. Chair Sanchez: You just wasted ten seconds. Mr. Cruz: I don't -- worry about; I got (UNINTELLIGIBLE) time. Listen, I am not a taxpayer of the City, and I don't pay debt service, thanks -- because I already protest two or three times my evaluation so I don't pay tax. Safe Florida Home, I got the disability too for veterans and everything, so I came inside the boat, not outside. Remember, no taxes, no deficit. But I pay taxes -- property investment I got in Allapattah. I got -- pay indirect taxes when I go to La Mia or go to the grocery store or go to the gas station, I pay indirect taxes to the City, okay. But remember, you can substitute the King George for the Manager or the Mayor, okay. He, the king, has erected multitude of offices and send hither some officers to harass our people and eat our (UNINTELLIGIBLE). Preamble of the (UNINTELLIGIBLE) independent, taxation, representation, everything. However, representation is the services I get. What services I get, okay? Police, Solid Waste, fireman, those I need. Those are municipal services. Over here they get a culture -- I mention -- of spend, spend, spend, spend. I tell you one thing. The other day, August 25, 5 in the morning I get the paper. Igo flipping to get the opinion page, and look what I found here. Four pages, four pages in the Miami Herald. It cost about 50 -- $70, 000. Four pages in The Miami Herald, okay. When the Clerk, who had called the people (UNINTELLIGIBLE) Miami 21, I work for Miami 21. That's culture of spend, spend, spend, okay. That's our money, that you could put somebody to work with that money, okay. Don't tell me about that. You could have called the people that came to Miami 21, called them and put a small ad to comply with a publication of general circulation, a little advertising. That's all you need. Not two full pages in The Miami Herald. How much it cost? Seventy thousand dollars. Who knows? Whatever it was. Okay. But they -- what I want -- one thing to do, we need the NETs. The NET we need. Not only the NET; we have to do away with the Code enforcement and put the Code enforcement officers back at the NET office 'cause that's what (UNINTELLIGIBLE) Applause. Mr. Cruz: If something ain't broke, don't fix it. What they did was create -- a Code enforcement to create a more bureaucracy and bring a double dipper people to control that. Somebody retire (UNINTELLIGIBLE) put it there. No, when you promote, promote from within. The (UNINTELLIGIBLE) City Attorney (UNINTELLIGIBLE) promote from within. Now, what you get? Police chief from outside. Labor Relations, it was no promote from within. Code Enforcement, not from within. What you think is that do for the morale of the employee who put 20, 30 years? I work for the Post Office. We promote from within. We don't bring somebody from UPS (United Parcel Service) to work at the Post Office to be our boss. No. Somebody that been a clerk, that been outside, that been bitten by dogs, that's what we promote, okay. All right. Chair Sanchez: In conclusion, Mariano. In conclusion, please. Mr. Cruz: No. In conclusion, no. I got -- don't worry; next time going to bring 20 people from Allapattah. I'm going to bring 20 people. City ofMiami Page 57 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: I've given you four minutes, my friend. Mr. Cruz: Okay. But, no, remember -- Chair Sanchez: Please bear with us here. In conclusion. Mr. Cruz: No, no. About that -- Chair Sanchez: You're against raising taxes. Mr. Cruz: -- we can do -- and next time I will mention that -- Chair Sanchez: Thank you. Mr. Cruz: -- we can do away with -- Chair Sanchez: Thank you. Mr. Cruz: -- so many things here. Chair Sanchez: Barbara Bisno. Mr. Cruz: But remember -- Chair Sanchez: Next speaker. Mr. Cruz: Yeah. Remember that. Chair Sanchez: Jose Estevez, Timoney -- Tim Schmand. No? Okay. All right, Barbara -- Jose? Jose, are you here? Jose, are you here? Okay, Barbara, let's go. Ashley, Sophie Masfriano. All right, you're recognized for the record. Barbara Bisno: You ready? Are you --? Chair Sanchez: Rubin [sic] Smith? Okay, let's go. Ms. Bisno: You ready? Chair Sanchez: Yes. Ms. Bisno: My name is Barbara Bisno. I live at 1000 Venetian Way, Apartment 603. I have with me tonight -- and I'm chair of the Community Relations Board for the City ofMiami. Commissioner Sarnoffs appointee. As you know, 13 volunteer members, all appointed by you and the Mayor. I have Carlos Morales and Andres Lemos. They were here. IfI may be indulged to have them speak after me and get all the CRB (Community Relations Board) together, is that all right, each taking two minutes? Chair Sanchez: Have they filed --? Ms. Bisno: Yes, they're signed up. Chair Sanchez: Okay. Let's get 'em -- Ms. Bisno: Thank you very much, Chairman. City ofMiami Page 58 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Can I have the names? Ms. Bisno: First name is Andres Lemos -- Chair Sanchez: All right. Ms. Bisno: -- and Carlos Morales. Okay. Where do I -- I mean, coming now after the presentations we've heard, there's not much I can say, knowing what you're facing, butt just want to get a few things on the record. The Community Relations Board is like the smallest piece of plastic on the top of the Commissioners' white top, the unclassified. We're a volunteer board. We've had three staff for the last couple of years. We're zeroed out. One of them is supposed to be fransferred. We're begging the Commissioners -- Spence -Jones was begging. I'm begging that these underpaid, talented, hard-working, unclassified employees be fransferred as well. I just want to take a few minutes to let you know how this volunteer board fits into the City. We're the people that are out there frying to work on the underlying issues of the City's tensions between communities, between ethnic groups. We have -- we work in the schools, in the high schools, in the colleges, working on anti -bias issues, recognizing bias, how to handle it. We've established a library for kindergarteners to third grade in Liberty City on the same issues. We work with law enforcement. We helped establish the Menace in [sic] Society in Overtown to get rid of the drug criminals. That's me already? Chair Sanchez: Yes, ma'am. Ms. Bisno: And in the face of what -- with what you're facing, I mean, the police cannot be laid off. Whatever has to be done has to be done. Our neighborhoods will face terror without them. The NET offices, my goodness gracious. We work with all of them. How will our citi -- we've worked for so long to build a city that's responsive to people, and people like us, volunteers out there working to help. And what we're doing, as the Mayor said so eloquently, is withering away. I don't have the answers. The Commissioners spent a lot of time with me explaining how hard things are. I understand. But if there's a way to move things around to save those three employees and to give us -- we spent $7, 000. That's all we spent. Thank you. Chair Sanchez: Thank you. Next speaker. Andres Lemos: Good evening. Andres Lemos. Just wanted to speak on behalf of the CRB and voice my two cents on what feel the CRB does, what it's done for the past, and what feel that it could do in the future. I feel that we are in tough and difficult times, politically speaking, a lot of political instability in Central, South America. Being that we are in a City like Miami, very diverse city with many different backgrounds, I feel that having a Community Relations office and board members, like ourselves, could really step in in situations like the Castro plan, where a lot of you know, upheaval and issues could be popped up from opposition from one side to the other. On whatever side of the fence you're on, there's always some sort of separation in Miami that, depending on the nature of the situation. So I think that the Ambassador program that the City -- that the CRB partakes in is a very significant role that should remain in existence and one that you guys should really keep in your agenda, close in your agenda. And that's my two cents on that. Chair Sanchez: Thank you, sir. Mr. Lemos: Thank you. Chair Sanchez: All right, next speaker. Let's go ahead. Ashley, and then we have Eduardo -- I'm sorry. I -- Eduardo, yes. Come on up. Sofie, you're next. Sir, if you could come here. Let's go and just line up so we could get some of the speakers out of the way. All right. City ofMiami Page 59 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Ms. Thompson: Chair, can you please tell me Sofie's last name? Sofie Mastriano: Masfriano. Ms. Thompson: Thank you. Chair Sanchez: Thank you. Okay. Ashley Chase: Good evening, Commissioners. Chair Sanchez: You're recognized for the record. Ms. Chase: Ashley Chase, of the Miami River Commission, with offices at 1407 Northwest 7th Street. May I submit these documents to the Clerk? Chair Sanchez: Yes, please. Ms. Chase: The Miami River Commission respectfully recommends the City to renew their annual $200, 000 for the Scavenger 2000 Water Decontamination Vessel for environmental clean-up services citywide. The scavenger vessel removes floatable debris and every hour decontaminates 600,000 gallons of water and injects 150,000 liters of oxygen into the water. From October 2008 to May 2009, the vessel collected over 7,000 cubic feet of trash, decontaminated over 481 million gallons of water, and injected over 100 million liters of oxygen into the water. I've attached letters from the Florida Department of Environmental Protection as well as the U.S. (United States) Coast Guard highlighting the vessel's economic benefits. Miami -Dade County's 100,000 annual contribution for additional scavenger services requires the City's matching 200, 000 for the vessel. Therefore, if the City does not renew its $200, 000, the County's annual $100,000 match would be lost, leaving no funding for the continued beneficial maintenance services provided by the scavenger vessel. A recent South Florida Water Management District permit issued to the City for bollards in the FEC (Florida East Coast) slip required a condition to continue the scavenger's five hours of service per week along the river, which was already included in your annual contract, rather than requiring a new additional mechanism, installation, and expense. The City owns and is responsible for over 100 storm water outfalls into the Miami River, protected by the Biscayne Aquatic Preserve Act. Considering the taxpayers just finished paying for the $89 million maintenance stretching of the Miami River, its continued maintenance provided by the scavenger is critical. I'm joined here this evening by Ms. Sofie Masfriano, president of Water Management Technologies, who's available to answer any additional questions you may have. Chair Sanchez: Thank you. Ms. Chase: Thank you. Chair Sanchez: All right. Good evening. Ms. Masfriano: Good evening. Chair Sanchez: State your name and address for the record. Ms. Masfriano: Yes. Sofie Masfriano, president of Water Management Technologies. The address of the business? Chair Sanchez: Yes. City ofMiami Page 60 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Ms. Mastriano: 10400 Northwest 33rd Street, Miami, Florida 33172. Chair Sanchez: All right. And basically, you're here to address us in the budget of the millage? Ms. Mastriano: To address you in the budget -- well, I'm just -- Chair Sanchez: Okay. Ms. Chase: Ms. Mastriano just joined the River Commission this evening -- Chair Sanchez: Oh. Ms. Chase: -- In case you had any questions regarding -- Chair Sanchez: Oh, no, no. Ms. Chase: -- the scavenger services. Chair Sanchez: Okay, no. Thank you so much. Ms. Chase: Are there any questions or --? Okay. Chair Sanchez: No, no questions. Ms. Chase: Thank you so much. Chair Sanchez: Thank you so much. Ms. Chase: Thanks for your time. Chair Sanchez: Appreciate it. Ms. Masfiano: Thank you. Chair Sanchez: Thank you for coming. All right, next speaker. Eduardo Fugiwara: Hi. Eduardo Fugiwara. We -- I'm here to speak for all the people that came before, but we -- who had to leave. We are users of -- Chair Sanchez: Can we have all of -- all that are with you? Can you raise your hand? Okay. Thank you. Mr. Fugiwara: And we have a bunch that had to leave. We're here just to request that we hear - - we heard a couple of weeks that ago that they would close the Range Park pool. The reasons that we are here to ask you don't close is because that's the pool that have more use for all the pools in the City. We have about 144 people that use that facility. Between the five different activities that they offer there, plus the pool is located in a community that needed that pool. Minorities -- that's the most of the population in that area -- are three -times more inclined to drown in relation to the Caucasians, okay. Miami's -- Florida, overall, is the highest percentage of drowning in the country. The only way to prevent drowning is people learn to swim, and if you close the pool, a pool that cost $3 million to reopen after ten years of work, close that pool, empty them, and then you wait for another six months or a year to open. The amount of money that you need to pay to fix that pool will cost ten times more than just to keep it running. A hundred and forty-four people using the pool through the year outside summer were kids or people use just recreation just to go there to be in the water. These people are daily there City ofMiami Page 61 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 through activities. Please check the records on the other pools. You'll see that there's not as much use as we have in there. We have kids from that pool that just came back from world championships. They are -- they born in U.S., but they can represent different counfries because they parents born in different counfries. Our goal is develop opportunities to those communities. Commissioner Sarnoff All right. In conclusion. Mr. Fugiwara: Okay. Commissioner Sarnoff In conclusion. Mr. Fugiwara: Please don't close the pool. I would like to be able to send a -- research the USA swimming made in the last year about the minorities and drowning. And believe me, it's scary to know that 70 percent of -- Commissioner Sarnoff Okay, sir, in conclusion. Mr. Fugiwara: My conclusion. Seventy percent -- Commissioner Sarnoff You have like ten seconds. Mr. Fugiwara: -- of the parents of minorities that don't know how to swim will never send their kids to learn. Commissioner Sarnoff Thank you, sir. Vice Chair Spence -Jones: Okay. Mr. Fugiwara: Okay. Vice Chair Spence -Jones: I just want to add, I did get confirmation from -- Commissioner Sarnoff Kay Winshal (phonetic). Vice Chair Spence -Jones: I'm sorry. While you're doing that, I did get confirmation from the City Parks Director that the pool would not be closed. Mr. Fugiwara: Okay. Even after October? Because they told us after October, they cannot promise anything. Vice Chair Spence -Jones: Do you want to respond to that? Commissioner Sarnoff Can we get Kay Winshal (phonetic) up next? Can we get Reuben [sic] Smith up next? Can we get Lavern Elie, Ms. Walker? Ernest Burkeen: Ernest Burkeen, director of Parks and Rec. We will continue to operate throughout this month, depending upon what takes place. Vice Chair Spence -Jones: Okay. So we're not -- so as of October 1, if -- Commissioner Regalado: But can you -- Mr. Director, Madam Chair. Vice Chair Spence -Jones: Sure. Commissioner Regalado: You know, the people in Shenandoah, they are concerned, too, about City ofMiami Page 62 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 the pool. And there are people that are willing to pay, so what has been considered in terms of operating the pool? Mr. Burkeen: We consider everything, but I can't -- Commissioner Regalado: I understand, I understand, but -- remember, we invested in that pool, the $100, 000 that the Bayfront Trust gave District 4, and this pool has been the pride of the area in Shenandoah. Now, I ask you do you have a structure or do you have a plan for a sfructure of probably paying something by the people that could support that pool? Mr. Burkeen: We have not had fees in the past. Commissioner Regalado: I -- Mr. Burkeen: We have looked at providing fees, but each time I've come before Commission about increasing fees, it's been pretty much rejected. Commissioner Regalado: I understand. Well, the last time was two years ago, and -- when things were good. But what I'm saying is do you think that there could be a sfructure of payment, a small, as it is? Mr. Burkeen: Absolutely. Commissioner Regalado: So we can support the pool in the hours of operation? Mr. Burkeen: There could be a fee structure, yes. Commissioner Regalado: Thank you. Chair Sanchez: Okay. Thank you. Vice Chair Spence -Jones: And we will work hard to make sure we save our pools. Chair Sanchez: Okay. Is it Rubyann Smith? Okay. Is it -- Vice Chair Spence -Jones: Rubyann Smith. Chair Sanchez: -- Lavern Elie? Vice Chair Spence -Jones: Here she -- are you Rubyann? Okay. Chair Sanchez: Okay, come on up. Lavern Elie. Mr. Walker. Vice Chair Spence -Jones: Ms. Walker. Mrs. Walker: Msr. Walker. Chair Sanchez: I am so sorry. Mrs. Walker. I do apologize, Mrs. Walker. Ms. Walker: All right. Chair Sanchez: It's getting pretty late and we've been here since this morning. Okay. Ricardo already spoke, correct? Okay. Gene S. Tinnie. Okay. Rubyann Smith: If you close this pool down, it's going to be -- City ofMiami Page 63 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Can you state your name for the record. Ms. Smith: Oh. Rubyann. If you close this pool down, it's like part of the community to all these kids who like go here and like walk from school -- to the school for like afterschool programs, like the football team, swim team, and other activities at the Range Park. So this is like very important to a lot of the students who come here. Chair Sanchez: Thank you. Thank you so much for being here. Vice Chair Spence -Jones: Thank you. Let's give her a hand. Applause. Chair Sanchez: You know, I try to keep this Commission in an orderly fashion, and then I have the Vice Chair who tells everybody let's give her a hand. Vice Chair Spence -Jones: I just like to see little kids. Chair Sanchez: Hey, why don't we do the wave, you know. All right. You're recognized for the record. Ms. Walker: Good evening. Vice Chair Spence -Jones: State your name for the record. Ms. Walker: Huh? Oh, all right. Vice Chair Spence -Jones: State your name for the record. Ms. Walker: You can hear me now? Could you hear me now? Chair Sanchez: Mrs. Walker. Ms. Walker: Right. Chair Sanchez: All right. Ms. Walker: Okay. Well, good evening to all the Commissioners. My name is Murial (phonetic) Walker. I live at 1305 Northwest 71st Terrace. I'm here with the Curley [sic] House on behalf of our seniors in District 5. We need your support to the Curley [sic] House because we need food to feed the seniors who are not able to buy the food they would like to have. Plus, they're going to the medical doctors and stuff. They can't afford to pay for they [sic] medicine. Well, our biggest concern is, would y'all please help us feed 'em [sic] because Thanksgiving coming 'round the corner; we gone need turkeys in our area, so Ms. Jones, that's your district, and I'm looking forward for you to speak up to your other partners, that we need help. Chair Sanchez: Thank you. Vice Chair Spence -Jones: I hope you heard me speaking up today. Ms. Walker. Yes. Vice Chair Spence -Jones: Okay. City ofMiami Page 64 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Ms. Walker: Oh, I saw it. Chair Sanchez: Thank you, ma'am. Next speaker. Ms. Walker: Mr. Sanchez, before I leave -- Chair Sanchez: Yes, ma'am. Ms. Walker: -- this what I would like to tell everyone in here. We are too blessed to be stressed. Chair Sanchez: Amen. Ms. Walker: And we need to kind of cool our minds and so. Don't let no one else upset you like I saw Michelle get upset this evening. Chair Sanchez: Thank you, ma'am. Ms. Walker: Thank you. Commissioner Gonzalez: Amen. Chair Sanchez: All right. Next speaker. Lavern Elie: Lavern Elie, Curley's House. Curley's House provides food for over 5, 000 families monthly. Out of those families, over half of those people are elderly. The elderly people really rely upon us for food because most of our seniors -- our median income for our seniors is less than $10, 000 in our district. Most of them receive 5 to $10 a month in Food Stamps, and what can you buy at a grocery store these days with 5 to $10 in Food Stamps. So that's why Curley's House is so essential to our community, so we really need your continued support. And on that note, thank you very much. Chair Sanchez: All right. Thank you. Commissioner Gonzalez: Thank you. Chair Sanchez: Who -- is it Kaye -- Ms. Walker: Okay. Thank you very much. Chair Sanchez: Okay, thank you. Is it Kaye Winshal (phonetic)? Okay. Gene Tinnie. Mr. Tinnie, how are you? Pleasure to see you, my friend. Gene Tinnie: As always, likewise. Gene Tinnie, 74 Northwest 51 st Street, City ofMiami. I guess I'm coming as both as a regular citizen, taxpayer, voter, and in my official capacity as chair of the Virginia Key Beach Park Trust. I guess the private citizen hat at the risk of stating the obvious, you know, we've heard a lot of scary numbers, and I think it just does us all well to be reminded that this crisis was created by human effort, and more specifically, by greed, and it can be solved, you know, by human effort. You know, I think it's -- for the people of faith, I think there's that great wise Brazilian proverb that says "Don't tell God you have a great problem; tell your problem you have a great God, "you know, and -- but God helps those that help themselves, so hopefully, you know, we'll -- as Ms. Walker just said, I mean, we're blessed with, I think, the intelligence and resources to solve this. In my official capacity, Virginia Key Beach Park Trust, I think at the beginning of the budget negotiations, we were asked to submit a reduced budget. We did that. And then we were sort of surprised to see that the proposal calls for reducing or eliminating what are called "outside agencies." It's kind of a misleading term. But that would City ofMiami Page 65 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 actually mean reducing the budget of the Trust to zero. Now, every department has, you know, its concerns about that. In these dire circumstances, I'm sure as I'm here talking about Virginia Key Beach Park, it almost sounds like something frivolous compared to the kinds of other needs that people have, butl think those who know the history and the significance and the environmental value of that park know that there is a lot more to it than just a park. Chair Sanchez: Thank you. Mr. Tinnie: As a matter of fact, just two days ago, our good friend, Congresswoman Ileana Ros-Lehtinen, read a resolution into the congressional record recognizing historical significance of Virginia Key Beach Park, so -- Chair Sanchez: In conclusion, sir. Mr. Tinnie: In conclusion -- that went fast -- what we'd like to just say is this situation calls for maybe using a scalpel rather than a hatchet. I think zeroing out the budget is going to cost more in the long run in terms of what gets disrupted and what doesn't get done, and that's just the dollar cost, not even mentioning the social cost. So I'd like to keep the door open for us to revisit this and renegotiate that. Thank you very much. Chair Sanchez: Thank you. Lillian Slayer [sic], I think it is. Vice Chair Spence -Jones: Let me say to Virginia Key Beach, I'm sure between your District 2 Commissioner and District 5 Commissioner here, we'll try our best to figure out a way to make sure that support remains at Virginia Key Beach Trust. Chair Sanchez: Karen Cartwright, come on up. Come on, Karen. Ms. Slayer [sic]. Lillian Slater: Okay. Good afternoon, all Commissioners. Okay, it's my time. Out of all these years -- Vice Chair Spence -Jones: You got to say your name, Ms. Slater. Ms. Slater: Oh, sorry. Lillian Slater, 1640 Northwest 4th Avenue, Apartment 10C, Town Park Village. For many years I've been begging, okay. Where's Commissioner Regalado? Where is he? Vice Chair Spence -Jones: He's out there interviewing. Ms. Slater: Okay. Well, you guys new on the block. Commissioner Regalado, all the years -- and City Manager, he's new on the block, so this is what like to say. Overtown has been there for many years. It was here before this building was built. The Bahamians came here, then the Commissioner building was built, okay. Now we need you all to make sure that the police officers stays in place. A lot of them is already retired. And we thank God for you all, but we want the NET office. You all knew when you put the NET office, all these years. Now why you want to take it away? Overtown NET office been there for a long time, so we asking you all to let it stay there because I have been (UNINTELLIGIBLE) ever since (UNINTELLIGIBLE) been built, and I don't think you all want no mess. I don't think so. Chair Sanchez: No, no mess. Thank you. Ms. Slater: Okay. So that's it. Chair Sanchez: Thank you. City ofMiami Page 66 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Ms. Slater: Now make sure -- Commissioner Sanchez -- Vice Chair Spence -Jones: Yes. Chair Sanchez: Right. Ms. Slater: Okay. You leave it there, please. Chair Sanchez: You got it. Ms. Slater: Okay. Chair Sanchez: Ms. Cartwright. Yvonne Bayona. Karen Cartwright: Good evening. My name is Karen Cartwright. I live at 1717 Northwest 5th Avenue, Miami, Florida. And my conversation is going to be about -- in this order. I need my NET office. It doesn't matter what you do with anybody else; I need mine. So to my Commissioner, I need my NET office. Mr. Manager and whoever represent him, I need my NET office. Figure out how you work out the money, but you need to work the office. And all the people that work in NET contribute more than all of you all put together, as far as I'm concerned, okay. As far as I'm concerned, they make this City work. The next menu, the police. When I getting robbed and mugged or whatever, I don't need none of y'all; I need a police officer. When my house on fire, I need a fireman. When the frash is piled up high as a you -know -what, I need a solid waste truck, my Litter Busters, my street sweepers, whatever you want to call them. And last on my list is the Community Relations. When problems in my community happen, I don't see anybody but the Commissioner and the TV cameras that don't need because everything negative that they can say, they've already said, and I don't need anymore of it. So my list of five items, I will be back to make sure that get every one of them. Chair Sanchez: Thank you. Ms. Cartwright: And everybody up here knows, I don't back down. Chair Sanchez: Thank you. Applause. Vice Chair Spence -Jones: Thank you, Ms. Cartwright. Chair Sanchez: All right. Listen, folks, I've been nice enough to have you guys not clap. I've said it several times; you continue to do it. What I'm going to do next, if anybody else claps, the sergeant -at -arms is going to escort you out, all right. Please, you got to bear with us so we could get through this meeting. It's going to be a long meeting; work with us, okay, please. I'm asking you nicely. Next time that anybody claps, I'm going to ask the sergeant -at -arms to escort you outside. Thank you. You're recognized for the record. Yvonne Bayona: Hi. Yvonne Bayona, 1150 Southwest 13th Avenue. Tomas, to let you know and to let the people know that are listening, as of October 1, the Parks Department for the City of Miami is going to cut major services for the public. It hasn't been out yet. I've sent you, Commissioner Sanchez and your staff an email a couple of weeks ago to provide me with those services that are going to affect the children of our District 3. So you'll know. As a taxpayer, I'm sitting here for a bunch of hours listening how we're discussing about employee pension, but I'm sure that that's not the only issue that the City has as far as problems with the budget. I'd like to know or for someone to tell me how much is the landscaping that's currently taking place here at City Hall costing? Do you know? City ofMiami Page 67 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Regalado: It's a grant. Vice Chair Spence -Jones: It's a grant. Commissioner Regalado: That's my understanding. Ms. Bayona: It's a grant? Chair Sanchez: Doesn't cost us anything. Ms. Bayona: Well, it's a million dollar grant, but -- Commissioner Regalado: I have no idea. Ms. Bayona: -- but -- yeah, it's a million dollars. The other thing I wanted to bring up, too, an example of the Orange Bowl. The Orange Bowl, we spent $24 million to get it repaired. We knew we were going to get it knocked down. Then we paid another $50 million to get it knocked down. Taxpayers' money being thrown away. Here we are talking about getting rid of staff, employees, NET offices, services that the taxpayers need. We pay for these services. We're required for them. That's why we vote for you guys. We elected you in office. You're supposed to serve us, the property taxes [sic]. The problem with this whole city is its mismanagement of funds, and no one talks about that. Nobody wants to hear that. But that's the problem why this City is going bankrupt. Vice Chair Spence -Jones: Thank you. Chair Sanchez: Thank you. All right. We have Ken Knight, Donna Milo, Selena (phonetic) Nelson, and Dr. Mae. All right, those names that I called, please come up. Thank you. Ken Knight: Ken Knight, 1281 Northwest 56th Street, Miami, Florida. Commissioners, I'm here to offer some solutions. I think the first one should be a four -day workweek. I think that the banks, as it was alluded to, was greedy. They put a whole lot of poor people with the subprime mortgages, so what I'm asking for, by ordinance, that what should happen is that the banks should pay -- the bank -owned foreclosed properties, should pay the real estate taxes. And there again, it was also talked about the little people. I want to talk about those. Ms. Hattie, Ms. Johnson, Ms. (UNINTELLIGIBLE), they make $530, respectively, $628 respectfully, and $430 respectfully. Please, there's a moral imperative and a people's mandate that we not raise taxes. I live in a community where we don't have Miracle Mile; we have Burial Mile. And the advertisement in the communities is for caskets. So please, bear this in mind. I'm here on behalf of those little people that I just expressed. Thank you very much. Vice Chair Spence -Jones: And -- Chair Sanchez: Thank you. Vice Chair Spence -Jones: -- I just want you to know -- Mr. Knight: Yes. Vice Chair Spence -Jones: -- that that's one of the recommendations that we've made to the City Manager, is to go to a four -day workweek because we do believe that that would help us reduce some costs, so that is something that's definitely being contemplated. Mr. Knight: That needs to be contemplated, Commissioner -- City ofMiami Page 68 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: Is that -- Mr. Knight: -- and it's to your Commissioners' credit, but also let's go after the banks and let them pay those real estate taxes on -- 'cause in my community, there's 60 percent unemployment and there's 55 percent foreclosures. Every other house is an abandoned house. Thank you very much. Vice Chair Spence -Jones: Thank you. Chair Sanchez: Next speaker, Donna Milo. Donna Milo: Good evening, Commissioners. I'm speaking tonight -- my name's Donna Milo, 1074 Northeast Little River Drive, Miami -- as a taxpayer in this City and as a business owner in the City, and I'm just here to ask you guys not to raise the millage. To really -- we were here just the other day to ask you guys to support Miami 21, and we kept talking about what Miami 21 would make a city more sustainable. Sustainable. What does the word "sustainable" mean to you all? Sustainability is many things, ecological, transportation, but also fiscal and financial sustainability. And as business people and residents of the City, all of us have been touched with layoffs in our families, slowdowns, cutbacks. And to paraphrase what Commissioner Spence -Jones said a little earlier was that when the City feels pain, that the citizens also feel it. And I submit to this Commission that it should be the other way around. When this -- when the citizens of the community are feeling the pain, as a government that represents us, the citizens, the City needs to also bear some of that pain. So I ask you guys to make the hard decisions to really look inward and see where we can save the taxpayers and continue the sustainability that we can make this city a thriving city and not a city that's burdened with taxes. Thank you, and good night. Chair Sanchez: Thank you. Vice Chair Spence -Jones: Thank you. Chair Sanchez: All right. Mae Christian: Good evening. Chair Sanchez: No. Ms. Christian: Good evening, Commissioners. My name is Dr. Mae Christian. I live at 4824 Northwest 15th Court, Miami, Florida 33142. I'm here in reference to the fact that someone just said to me that the County taxes are handled and the responsibility of Dade County. I was at the valuation board on yesterday, and for years I've been informing seniors, just like yesterday. What is the responsibility as it relates to the City ofMiami residents that are paying taxes, like the 80-year-old lady I talked to yesterday that is entitled to senior exemption. She knows nothing about it. She been paying taxes for 15 years, and she's been a senior. She's 80. She's a widow and she's disabled, so who's responsible to make sure that these people that have been taxed with a tax burden that only have one homestead exemption because somebody is not informing these elderly people that they entitled to other exemptions, and I'd like to know who's responsible for the information. This is taxation without information and representation. Commissioner Regalado: I would tell you that that lady -- because she's a widow, she has an exemption because she's more than 65 years old and probably is on Social Security. She has two exemptions of $50, 000, two homestead exemptions. And because she's disabled, she does have another exemption. So it would be the property appraisal [sic] office in 111 Northwest 1st Street, the property appraisal [sic] would allow her to fill all the papers to, you know -- she have City ofMiami Page 69 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 to wait for the cycle, so she needs to go there. I would think that also in the Finance Department of the City ofMiami, she can get information as to act. But the only agency that would help her with the homestead exemption would be the property appraisal [sic] office. Mr. Christian: Okay, you missed my point. I asked -- your talking about taxes that this lady an all these people are paying as it relates to the City ofMiami. So you're saying what a disabled 80-year-old lady can do, and I'm asking for the City residents that are in these categories, I'm asking that the City -- if you got to put pressure on the County to inform these people -- how she's going to run around? She's disabled, she's 80, and she's a widow in a wheelchair. So I've been helping all these disabled people that are paying taxes to the County and the City and they're not getting the information. So what's your responsibility to enforce --I know where the 111 building, the valuation building, but you got residents that belong to the City ofMiami that are being taxed unfairly, that have the right to have exemptions and the right information. Commissioner Regalado: And you're totally right. I think it's the duty of the City to inform the people of their right, but still -- I mean, in our office, we have filed appeals that, you know -- with the property appraisal [sic]. Ms. Christian: Yeah. But you're receiving the taxes from these people. So I just want you to know, going on record to let you know that you got residents that you receiving taxes from that are not being served and given the proper information that are being taxed unfairly. Thank you. Have a nice day. Chair Sanchez: Thank you, ma'am. Thank you. Okay. Hadley [sic] and then Selena (phonetic) Nelson. Andres Lemos already spoke. Roy Hardemon. Eduardo already spoke, if I'm not mistaken. Joe Simmons, Jr., come on up. Al West, come on up. And Gerald something. Vice Chair Spence -Jones: He's there. There he is. Chair Sanchez: Okay, come on up, sir. Come on up. Vice Chair Spence -Jones: Ready? Chair Sanchez: All those names that I called -- if I've called you, please come on up. Hattie Willis: Good evening, Commissioners. My name is Hattie Willis, and I live at 5510 Northwest 1st Avenue. I live in the poorest district in the City ofMiami, which is District 5. And the reason I'm here tonight is -- and I want to say good evening to everybody, and especially Commissioner Regalado, and say that you and I have been around in the City for longer than anybody else in this room, and I've been working in the community, and I work as a community activist for 17 years. I don't get paid anything from anybody. I do this out of the love of my heart. And I've been getting concerned phone calls all week that's just been touching me, and I need to say this. I've seen the corruption in the City ofMiami. I've lived through the corruption. I know how the money is being spent. I know how money is being lost right now, where you've hired consultants that got paid for not doing work. And I'm not going to even go there. What I'm going to say is you know, but what I'm going to say is this. I just heard in the beginning that you said $3 million was all it would take to keep the NET office, but you was paying people $300, 000 in the Fire Department to work. Make no sense. Let me say this. Let me tell you what my day was like. In my community -- first of all, the reason I gave you these packages, this is the drill down -- and I just want you to look at the two pages that I put a sticker on. One of -- in my Commission -- I wish Commissioner Sarnoffwas here because he was one of the people that said the drill down needed -- I mean, that the -- that we needed to get rid of the NET. When I leave my -- when I get up today, today I got up and left to go out to do whatever dealings I had to do in the community, I went to Commissioner Sarnoffs district to go to the bank. I went to his district to go to the Dunkin Doughnuts. I went to his district to go to the grocery store. I went to his City ofMiami Page 70 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 district to go to the mall. I don't have any economic development in my community, but the CBOs (Community Based Organizations) and the NET and the parks. I got a child that lives next door to me that his mother had a stroke and he works for the City ofMiami Parks, and he takes care of his mother. He's about to lose his job. The NET -- this is whatl did today. I called the NET because somebody broke into an abandoned house and set up shop to move in for a drug dealer. I called the NET 'cause I had homeless people on the block terrorizing the senior citizens. I called the NET because there was someone that needed some food. I called the NET because somebody needed a place to live, and I had to help them find somewhere for those people to go. Now, that was today. Chair Sanchez: Ms. Willis, in conclusion. Ms. Willis: And I'm going to end. That was today. And for you to sit and say that you're going to close the NET -- now, this is the last thing I want to say, Commissioner, in closing. These are the things you can do. Chair Sanchez: We're not saying we're going to close the NET office. Ms. Willis: You can do a four -day week -- Chair Sanchez: Let me clarify something. Ms. Willis: Okay. Chair Sanchez: We're not saying that we're going to close the NET office. It's a recommendation being made by the Administration. Ms. Willis: Okay. Chair Sanchez: We, this Commission, is the Commission -- based on policy, we make decisions based on the policies. So these are just suggestions. Ms. Willis: Well, it was on the web site, and I apologize to you, Commissioner, if it's a -- well, I'm going to give you -- Vice Chair Spence -Jones: It is. It's on the budget saying that it's zeroed out. Ms. Willis: Right. It's -- Vice Chair Spence -Jones: So you're not incorrect. It's saying that it's zeroed out -- Ms. Willis: Okay. I read that. Vice Chair Spence -Jones: -- and that's why you're here to say that you -- Ms. Willis: That's why I'm here. Vice Chair Spence -Jones: -- want it to happen -- Ms. Willis: That's -- Vice Chair Spence -Jones: -- you want to make sure it stays. You know that you have your D5 (District 5) Commissioner supporting that 100 percent, and every single last one of these Commissioners up there, they're supporting it. City ofMiami Page 71 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: And you made your point very eloquently. Ms. Willis: And the last -- only thing I want to say is that we can work this out. We can do a four -day week. You can ask those people to retire that need to retire, and you can let them use their sick and vacation time. Those are some suggestions, and let's -- last (UNINTELLIGIBLE) they're going to get mad with me. I don't mind paying a exfra tax because we all are in this pool together and we need to all work together, and if everybody takes a little bit of this thing, it's okay with me. Chair Sanchez: That's -- Ms. Willis: I'll pay a exfra penny. Thank you, Commissioner. Chair Sanchez: -- the key to the success here is everybody working together. Thank you. Vice Chair Spence -Jones: Thank you, Ms. Hattie. Chair Sanchez: Roy Hardemon, you're recognized for the record. Roy Hardemon: Yes. Roy Hardemon, mailing address 655 North [sic] 48 Street. I'm like Ms. Hattie, the NET office, forget about that recommendation to shut it down. You know, in my neighborhood, which is Liberty City/Model City, it's been clean as I ever seen it with the NET office around and Dust [sic] Busters cleaning up (UNINTELLIGIBLE) keep them in place. But what I'm really here for is that the City ofMiami gave a commitment to Liberty City under the Model City program, and they also want to zero them out. You know, you tore down half of my neighborhood in housing, and we can't seem to get enough Commission votes to bring back the houses that's so readily needed in our district, but while we brag about other neighborhoods that's has the capacity to build houses in theirs when they (UNINTELLIGIBLE) most of the money. You know, I think this Commission going to follow the same standards that the County did without raising its millage and then, you know, again, Liberty City is going to suffer. And then when marshal law broke out -- break out, who's going to need the police then? Don't touch the Police Department either. Vice Chair Spence -Jones: Yeah. Mr. Hardemon: We need y'all help with making sure that Liberty City Trust get what they supposed to have. Chair Sanchez: Thank you. Mr. Hardemon: Thank you. Vice Chair Spence -Jones: Thank you, Roy. Chair Sanchez: Next speaker. Joe Simmons: Good evening, ladies and gentlemen. Joe Simmons, Jr, president ofAFSCME Local 871. There was some things said earlier and I want to correct for the record. We met with the Manager's office twice, and we offered them some suggestions as to contribute to this deficit that we're facing. Vice Chair Spence -Jones: Mr. Manager, I'm sorry, I just want to make sure, since we have another union standing up, that we're listening to Solid Waste just like we listened to all the rest of the unions. Mr. Simmons: The first thing that we did, we sat down -- we had a meeting back in August, and City ofMiami Page 72 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 we discussed some things, but we didn't come up with an agreement. I made it clear that in order for us to come to an agreement, it has to be mutually beneficial for both. Our department probably out of all of them have probably suffered the most over the last 16 years. Nineteen ninety-three, we had 330 men and woman that worked in operations. We're now down to 195. They brought in the one -arm bandit system. Technology made us a lot more efficient, but there's only so much cuts we can take. Every year you buy new equipment, and what happens is what you're given is being mismanaged because you have a director of a department that don't have control of his staff that are in key positions that are primarily responsible for our people, men and women, to do the jobs that they do. The gentleman that got killed last week was on the chopping block. Unfortunately, he won't have to get -- worry about losing his job this time 'cause he's gone on to glory. I don't feel comfortable with these people in the room because we asked for information -- they gave us one set of numbers back in July. The first budget we got was almost 1,200 pages. It took me nine hours to go through it line item by line item. I had a bunch of questions, so we contact the Manager's office; let's set up a meeting. Of course, we came up with an agreement on September 3. September 2 they generated a memo to all the other unions, including ourselves, that we had an agreement, which we had not. We asked the Manager to withdraw that statement. He's proffered me his two minutes. I asked him to withdraw that statement. If we are -- if you guys, as Commissioners, have to make the decisions on this budget moving forward, then you have to be armed with good, accurate information, and the people that you rely on have to have integrity. Because I told the Manager, I said, you know, if we can't trust what we agreed upon in the room before we put something in writing, do I need to bring a court reporter to shorthand everything that everyone is saying in the room word by word? We have administrative staff in our department that are duplicating work. There are a lot of deficiencies there, but if you have someone there that don't have control of their staff then we're in a position that we're in every year. We've gotten three sets of numbers, and I asked what is the real number. Our agreement was similar to what Charlie proffered earlier. We agreed that we will increase our pension costs from 10 to 13 percent, pay the cost of living raise in October, (UNINTELLIGIBLE) longevity, and anniversaries would be frozen for the next fiscal year. My people agreed to that. They also told us that they were going to cash out the DROP participants and pay health insurance for two to three years. My people asked -- because I met with all three -- all four divisions -- and they said, okay, Joe, where's this document? The document that the Manager gave us is completely different than what we discussed in a memo he put out earlier also, so we really don't know what's the truthful information. How could we come up with an agreement if nobody's being truthful from the administrative side? Chair Sanchez: All right. Joe, your -- I think it's -- any time that someone makes those statements, I think it's important for the Administration to respond to that because -- Vice Chair Spence -Jones: Have we made any headway with them? Mr. Hernandez: I would say that we're working very cooperative with them. He did say -- and we agreed -- that the October 1 increase would go towards the employee contribution to the pension. He agreed to defer the longevity and the anniversary, and the only pending issue was the tier salary reduction that because of their salary structure, they would like to have it different than the one that we're applying uniformly. He also mentioned the issue of the early retirement, and it's something that, as I said before, we're working on and something that I hope has promise to help deal with positions that will go away. So I'll continue to work with Mr. Simmons. We don't have, you know, a big issue. Chair Sanchez: But let me just clarify one thing. On the tier salary reduction, which you have proffered, does it really matter if they come across with a 7 percent, 5 percent, as long as they meet the number? Does it have to be your --? Mr. Hernandez: In -- City ofMiami Page 73 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Well, just clarify that because it -- if you're negotiating with me -- Vice Chair Spence -Jones: Yes. Mr. Hernandez: Well, it doesn't -- Chair Sanchez: -- and I've had the opportunity to do exactly what he's done -- 'cause I've sat on the other side of the negotiating table as a state trooper with the Florida Highway Patrol PBA (Police Benevolent Association) -- and you're telling me that I need to have a tier reduction of 10, 9, 8, 7, 6, whatever the number is, and you're getting a final number and I tell you, well, I could get to that number, but instead of being like that, it'll be across the board. Mr. Hernandez: That's fine. Chair Sanchez: Is there a difference as long as the number -- Mr. Hernandez: No, I don't have a -- Chair Sanchez: -- ends up being the same number? Mr. Hernandez: Problem with that. Chair Sanchez: Oh, okay, okay. Mr. Hernandez: And as a matter of fact -- Chair Sanchez: I just wanted to clarify that. Mr. Hernandez: -- that's something that has been discussed with other unions. Chair Sanchez: Okay. Mr. Hernandez: But I think that in sanitation's case, the idea was to increase the ceiling from 40 to 50 because the majority of the employee's salary are in that range, okay, and then decrease the percentage on the first bracket above that, okay. That's what they would like to see versus what we have in the budget, which was based on uniformity for all the unions, okay. That's, in essence, the only difference that we have with them right now. And when I met with Mr. Simmons, I agreed with his idea of having it change because of the impact on sanitation. Chair Sanchez: All right. Commissioner Regalado: Mr. Chairman, ifI may. I have a question, Madam City Attorney. Do we, as Commissioners, have authority to negotiate with the union? Ms. Bru: Based on Chapter 447 and also your Collective Bargaining Agreement, it's the chief administrative officer, the Manager, or his designee, who negotiates with the union. Commissioner Regalado: So he's the sole source for negotiations? Ms. Bru: Yes, he is, or his designee. Commissioner Regalado: So we need to depend on him. And I'm really concerned because Joe has said, okay, we went into a room to decide something and then was something else. This has been the pattern, this evening here, that the union said, oh, we talked, we didn't talk; we said that, we -- So how do we know that it's been --? Because, you know, time is running out. Time is City ofMiami Page 74 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 running out, and I don't know how much or how long the Manager has to settle the issues with the union, and I don't know still the things that puts you apart from him. I guess the only thing -- Mr. Hernandez: Commissioner, I think that I -- what just stated before indicates that we're very close. Commissioner Regalado: No. I understand that. Mr. Hernandez: There's no -- Commissioner Regalado: I don't know if what sets you apart from him is that he has given everything that you asked. He only wants to modify the tier salary, but if -- it's about the firing of employees, too. 'Cause I guess that you're giving up everything for your employees not to be fired. I mean -- Mr. Simmons: Yes. Exactly, Commissioner. Commissioner Regalado: So I don't -- I cannot understand if that is a sticking point. That's why I asked because -- Mr. Hernandez: Commissioner, it would be. Because, in essence, as far as the reductions, I would say that we're very, very close. The sticking point will be, as you said, the same with Charlie Cox's group, is that they would like for in exchange to have all their employees be protected; the 87 in the case of Charlie Cox's and the 13 in the case ofMr. Simmons. However, that will necessitate additional reductions in order to be able to protect those 100 people. Mr. Simmons: Right. The two memos I just passed out, September 2, 2009, we hadn't even met and came up with an agreement, and that issue was generated amongst the four unions, so there was a presumption that we had come to an agreement. September 4 memo -- Mr. Hernandez: No. Mr. Simmons: The September 4 document was what we agreed on -- part of the things we agreed upon, but everything was not in there. We did this in the spirit of -- we have some temporary employees in our department. We didn't want to see them on the street. We even talked about ways to -- would have the same effect as a furlough, a certain number of days that a person would not lose their employment. We've got 14 people that make less than 17,000 a year. That's not a lot of money. We got people that's been waiting in line, eight, ten, twelve years, temporary. Vice Chair Spence -Jones: Well, Joe, as I mentioned to you as -- to the other unions as I'm mentioning to you as well -- and you know there were some suggestions that came up from this board that we can look outside of that to even save as many jobs as we need to. I'm going to ask again that the City Manager and you guys really sit down, fry to come to the table and look at the whole entire picture. I know that you've done more than, you know, most, but I'm just asking, once again, the City Manager and yourself continue to do that so that when it comes back in front of us, it's something that you can live with. And look at look alternative creative things that we can do -- Mr. Simmons: Yes. Vice Chair Spence -Jones: -- to address this 'cause I really don't want to see any Solid Waste workers go, period. Mr. Simmons: Right. City ofMiami Page 75 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: Can't really afford -- Mr. Simmons: That -- Vice Chair Spence -Jones: I mean, so -- Mr. Simmons: -- was part of our motivation for doing this because we also looked at -- because I believe everybody needs to be in the room at the same time. Don't have the Manager in a room and the CFO and the directors are somewhere else, and then of course, when we meet again, it's something different. So everybody needs to be in the room. Whatever agreement we come up with, I told him it need to be signed by all parties, so we won't be back before this Commission chamber debating this subject. Vice Chair Spence -Jones: So, Mr. Manager -- Mr. Hernandez: No. It's not a problem. Vice Chair Spence -Jones: -- we officially have it on the record, Joe, we're going to definitely move in the spirit of trying to get it done. Chair Sanchez: Thank you, Joe. Vice Chair Spence -Jones: All right. Chair Sanchez: Appreciate it. Vice Chair Spence -Jones: Thanks. Chair Sanchez: All right. Al, Herschel, and then Tony, and -- Vice Chair Spence -Jones: That's the last one, right? Chair Sanchez: --I think have one more, Sue Germain. Sue? Is it Sue? Come on up, Sue. All right, and that -- I think that takes care of the -- Vice Chair Spence -Jones: Public hearing. Chair Sanchez: -- public hearing. Vice Chair Spence -Jones: Take a 30-minute break. Chair Sanchez: We're -- I have not gotten your -- have you filled out a form? Unidentified Speaker: Yes. Chair Sanchez: All right. So I guess not. I guess we have some more speakers okay. Nelson and Robert. Okay, you guys can line up and speak afterwards. After that, we're going to close the public hearing. We're going to take a half an hour recess, giving us a chance to catch up on some things, get something to eat, but before we do that, the Mayor has requested to speak at the end of the public hearing, so Al, you're recognized for the record. Alvin West: Mr. Chair, Commissioners, my name is Alvin West. I'm here as treasurer of the Downtown Development Authority, your organization that is responsible for helping to generate jobs and tax revenue and -- as a result of the work that we do in downtown. We understand the City ofMiami Page 76 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 difficult task that you have to face, and we hope that we can be a part of the solution. We are concerned about the proposed City cuts in Police, Code enforcement, NET, Bayfront Park, homeless programs, and other quality of life services. Population growth in downtown has increased demand on the services that we provide. Relative to increase in population. Since 2000 we have seen a 76 percent, or 30,000 increase, in population in the downtown trade area. Relative to voters, registered voters, we have seen, since 2000, an increase of 103 percent or 9,000 registered voters in the downtown market area. Just this year alone, we have added 27 new businesses in the core of downtown. Protecting your downtown core is essential to protecting the tax base of the entire city. The new businesses cannot prosper without police protection. Safe clean street are essential to the economic viability of the City's core. Homelessness is a significant problem in downtown Miami. We host 52 percent of the emergency beds. Without a strong outreach and placement efforts, this problem will increase and reverse the years of work that we've sustained. Thank you. We appreciate you listening to us, and please, we want to work with you and make this a better city. Thank you. Chair Sanchez: Thank you. All right. Herschel Haynes: Mr. -- good evening, Mr. Chair and fellow Commissioners. I'm here -- my name is Herschel Haynes, and I live at 4601 Northwest 15th Avenue, Miami, 33142. And I'm also Chairman of the Hadley Park/Model City Homeowners Association, and I'm here to ask that you not close the pool, if you would, as well as some other things, but especially, the pools because if you kind of reflect and look back, it really, really cost a lot of money to build the pool on the north end. We're talking about millions and millions of dollars because we're talking about an Olympic complex. And when you close a pool, it subjects it to damages because, you know, if it's not being used properly, the bottom can crack, and you know, this is -- just cost a lot of money, so we want to ask you to really look at every way possible that you can keep the pools over -- open, and especially the ones on the north ends because it serves a great purpose because we -- our park is used probably more than any other park because we have a lot of young people that we fry to keep on the park, and we have a lot of disadvantaged youth, and so it's just to have so many reasons that are counterproductive. And the other thing I was -- would hope is that -- I heard someone mention four -day weeks. Four -day weeks are days with less hours, but certainly, we hope that you will come together and look how you can save money and just not go to the extreme like, you know, laying off all of these officers because we're talking about -- with all these people that out of work, being terrorizing our citizens -- Chair Sanchez: In conclusion. Mr. Haynes: -- and so we ask you to try to come together and not do that. And one last thing is the NET offices. I heard somebody said that they really do your work, a lot of you Commissioners. And we would ask that you think about that and think about how they are out there keeping the City moving and addressing issues -- Chair Sanchez: Thank you, sir. Mr. Haynes: -- and so we would ask -- Chair Sanchez: Thank you. Mr. Haynes: -- that you look at -- Chair Sanchez: Thank you. Vice Chair Spence -Jones: Thank you. Mr. Haynes: -- trying to do these kind of things. City ofMiami Page 77 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Tony. Tony Garrandes: Tony Garrandes, 2240 Southwest 20th Sfreet. And the previous speaker said everything I was going to say. I sure appreciate if you guys -- if you Commissioners remember that we're the first line of defense during a hurricane, graffiti; we help the homeless and everything else. I'm speaking on my behalf not the NET office. From the administrative on down, we do taxes for the citizens. We're -- we respond to anything. You Commissioners ask us at the moment. We respond to everything at the moment. And I work for all of you. We do volunteer work for Hands on Miami, Liga Contra Cancer, and everything, and just remember us, okay. Chair Sanchez: Thank you, Tony. Mr. Garrandes: Thank you. Vice Chair Spence -Jones: Thank you. Chair Sanchez: Thank you. Sue Germain: Good evening, Commissioners. My name is Sue Germain. I reside at 2310 Southwest 24th Sfreet, in Miami. I'm on the board of trustees for Virginia Key Beach Park Trust. Excuse me, Historic Virginia Key Beach Park Trust. When the economy fell off the ends of the earth back over a year ago, we began to address our expenses. One of the things that we did is we put a ceiling on the salary increases our employees could receive. That ceiling was at 2.5 percent. We began to address all of our other expenses. We put our budget together. The original budget was for $1.6 million. We were asked to cut our budget 10 percent. We cut our budget 10 percent. We were asked to cut our budget an additional 5 percent. We cut our budget an additional 5 percent. We cut our budget a half a million dollars, $500, 000. Our director, David Shorter, goes to a budget workshop and finds out that we're not getting anything, or proposed, we're not getting anything, zero because we're an outside agency. On your agenda tonight you have a discussion item regarding the budget for Bayfront Park Management Trust. They, too, are an outside agency. You're asked to approve their budget of $3.8 million. We're asking for 1.1. Commissioner Sarnoff They're not getting anything. They've been -- they're not getting any money. Ms. Germain: I'm just telling you what I found on the agenda. Chair Sanchez: Thank you. Commissioner Sarnoff I'm telling you they're not getting any money. Ms. Germain: Okay. Commissioner Sarnoff They have been zero budgeted, just like yourself. And my question to you is how much of a carry forward balance do you have, a 1.1 million or $1.2 million? Mr. Germain: One point one. Commissioner Sarnoff Okay. Ms. Germain: That's the budget that we're asking for. City ofMiami Page 78 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Sarnoff No, no, no. Chair Sanchez: Thank you. Commissioner Sarnoff My question is how much of a carry forward balance do you have? Ms. Germain: I don't know. I don't know all the numbers. Commissioner Sarnoff Well, I think it's $1.2 million correct? Ms. Germain: Is that the carry forward balance? David Shorter: No. Sir, Commissioner, David Shorter, Virginia Key Beach Park Trust. Our carryover is $200, 000. Ms. Germain: Two hundred thousand. Okay. We want to sustain ourselves. We are in negotiations with AEG promotions, concert promoters for the Michael Jackson concerts before he died. We will be having our next meeting next week. We want to be self-sufficient. Come January 2010, the renaissance fair will be in the park. Chair Sanchez: Right. Ms. Germain: Now, as you all know, it's normally in Coral Springs. Chair Sanchez: In conclusion. Ms. Germain: Okay. Chair Sanchez: You basically have made your point. Ms. Germain: We need your support. Chair Sanchez: Thank you. Ms. Germain: That's the bottom line. Chair Sanchez: Okay. Ms. Germain: I'm not a politician. I deal in numbers and facts. Chair Sanchez: Thank you. Ms. Germain: We need your support. Thank you, Commissioner Spence -Jones. Chair Sanchez: Thank you. Renita Holmes is the last. Robert, is Nelson going to speak? Robert Suarez: I think he's going to yield his time to me. Chair Sanchez: You're going to what? Mr. Suarez: He's yielding his time to me. Chair Sanchez: And that -- I don't have anybody else. I think that concludes the public hearing. So at this time, Madam Clerk, you have more? Okay, the public hearing is closed. You're recognized for the record. City ofMiami Page 79 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Suarez: Commissioners, Mr. Manager, Mr. Mayor, Robert Suarez, Miami Association of Firefighters. I think the -- all the Commissioners know that my organization has been working with the Administration very closely over the past couple of weeks. We understand the budget issue. We have proffered many concessions. I think the Manager will tell you that to this date, my organization has proffered about $14 million in salary and benefit reductions. We know that we have to be part of this process, and this budget cannot be balanced without us. There's a lot of issues that have been discussed regarding the pension. I think we've been upfront in working along in that process. This morning you passed an ordinance increasing our contribution, reducing our benefits. We have more increases in contributions and benefit reductions scheduled. There is absolute cooperation on our side, and I just need you to know that that we're willing to work. We have been working. I think the Manager will echo that, and we're familiar with the problems in the City, and we want to work to bring -- there's a lot of misconceptions out there, issues with rank structure -- I'll tell you that your Fire Department here in the City ofMiami is no different than any other Fire -Rescue Department in Florida. You want to compare us to police departments and how many officers and ranks we have, it's different. It's different. But in terms of the Fire -Rescue Department that you have here, it is the exact same Fire -Rescue Department that you'll find in any major metropolitan area that provides fire and rescue service like we do. There's nothing unusual about it. Chair Sanchez: And why is that? Because you were the first city to go to Fire -Rescue and you write the standards? Mr. Suarez: No, no, no, not at all. No. The method of service that we have here -- and actually, our department was restructured. I've heard comments about let's restructure the Fire Department. This Fire Department was restructured in a way unlike any other in the 1990s, the last time this City had financial crisis. We shut units down all over the City. We restructured our units. We recognize that the majority of the work we do is emergency medicine. We use the term firefighter. The reality is 80 percent of the work that my members do is paramedics work. They're licensed paramedics. That's what we do, the majority of our work. We've shifted our responsibilities to that. That's where the demand is in the community. We don't have waste within the Fire Department when it comes to the service that we provide. Over the past eight years, we've put units into service. A lot of the problems we have with salary is based on overtime. You talk about special pay. I think if you ask Mr. Boudreaux, $6.5 million of that special pay is overtime due to shortages of personnel to operate units. If this City does not want that many units in service, that's a policy decision. We can discuss that. I've proffered to the Manager reducing that overtime to $5 million. You have to understand that that is a reduction of service. This City has committed service in the Fire Department and units that so far has not been able to keep up with personnel. We have not hired a firefighter paramedic in the City in over a year, and we probably won't hire one for another three or four months. And that has created an enormous shortage, $6.5 million due to personnel shortages. The rest of the department is working that $6.5 million worth of overtime. Is that going to create huge salaries? Absolutely. I don't want that, but the reality is we've committed service to the citizens that maybe went a little beyond what we were ready to do. We didn't hire fast enough. There was serious problems in hiring and recruitment and it's caused enormous shortages. Members have continued to retire. We average 30, 32 years of service in the Fire Department, but if we don't hire for a year and a half there's going to be enormous vacancies, and the City has to expect -- the Administration has to expect that we're either going to shut units down and reduce service, and there's terms that are thrown out there about salary incentive, overtime, and that's a fancy word for getting the people you need to continue the service. Chair Sanchez: Mr. Manager -- Vice Chair Spence -Jones: Bobby -- City ofMiami Page 80 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: -- what is it exactly that they have proffered, for the record? Mr. Hernandez: Well, let me be clear. Chair Sanchez: My under -- Mr. Hernandez: He has proffered an amount that is larger than the one that we asked for in the memo that I sent out September 2. His proposals are somewhat different from what we asked for. I think that the one that comes to mind is that he's agreeing to forego the 5 percent increase due of 10/01/09, right? Mr. Suarez: That's right. Mr. Hernandez: Also, it's the longevity and anniversaries. Chair Sanchez: That totals how much? How much --? Mr. Suarez: In total bene -- Mr. Hernandez: That's about 3.6, 3.8 million. We wanted to also have a tier salary reduction. He is -- he doesn't favor that. He would rather have -- then I said, well, would you mind having an equivalent across-the-board that would yield the same end result? He's not coming to where we feel he should be because that amounts to at least 8 percent across-the-board, and I think that he's offering 3 percent, combined with other elements that altogether come up to like 14 million. So the format that he's using, the components, are different than the ones that we asked for. They come up to a larger amount. But more importantly is the fact that he would like to see his present contract extended a year. Chair Sanchez: So that would be the gift bag? Mr. Hernandez: That will be -- that's the key issue. Mr. Suarez: And my organization is not asking -- Chair Sanchez: Whoa, whoa, whoa, whoa, whoa. Mr. Suarez: -- for anything. Chair Sanchez: Hold on, hold on, hold on 'cause, you know, we don't know what you have negotiated so far. I think it's -- that's one of the things -- we don't know. We -- Mr. Hernandez: Right. Chair Sanchez: -- do feel that both of you need to together and come to a reasonable solution so nobody gets laid off. Mr. Suarez: Right. Chair Sanchez: Okay. That's -- I think we all agree on that. But what they proffered, they've also asked you for an extension of the contract for how many years? Mr. Hernandez: For an additional year. Chair Sanchez: For an additional year. Mr. Hernandez: And we have said no. City ofMiami Page 81 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Okay. Mr. Suarez: And to clarify, when I say an extension of the contract, it's literally an extension of the give -backs that we're proffering. It's one more year of $15 million or $14 million in reductions. I'm not saying give me one more year and everything comes right back. It's one more year of $14 million in reductions. Vice Chair Spence -Jones: Bobby. Mr. Suarez: All I'm asking is for -- my members asked for some security. Having a collective bargaining agreement is having some security. Vice Chair Spence -Jones: Robert. Mr. Suarez: I'm proffering them to give back things -- Chair Sanchez: Okay. All right. Mr. Suarez: All I'm saying is we would just like some security. Chair Sanchez: Vice Chair Spence -Jones, and then we'll -- we have -- Vice Chair Spence -Jones: So -- you remember I talked about that 900-pound gorilla in the room Mr. Suarez: Um -hum. Vice Chair Spence -Jones: -- earlier? I mean, nobody really wants to say that, but this is a 900-pound gorilla, and -- I mean, it's great to see that we've gone from 10 to 14 million, which is excellent. I think, you know, from the Fire Department's side of it, and we appreciate you guys willing to get in there and make it work. I understand why Police is -- why they -- why they're upset because obviously, a year or so ago, certain things were promised and they laid back on it, and next thing they know Fire was getting stuff that they didn't get. So I understand why they're angry, you know. Bobby, I'm going to ask -- and I'm sure you've heard the testimony, and you guys are probably the most reasonable people. You understand what the needs are of the citizens and the people in this community. You've heard them. You've seen them. You know the -- you know most of the City employees. You know what the situation is, and I see you reaching back trying. I just need you to dig a little deeper. I need you to talk to your members to ask them to dig a little deeper. That's all this is about. We don't want to see not one department -- we want to try to, you know, lessen the blow to the residents, to the citizens. We just need you to dig deeper. I know you frying, butt need you to continue to try harder. And that's what this is all about. And I think that if people see that from other perspectives, then, you know, everybody can work together. But right now, you are the 900pound gorilla, and that's what the Administration needs to see happen. And I -- you know, Pete is saying that, you know, we're moving in that direction and we're almost there, but he's saying that these additional things are key. Unfortunately, in 2007 we all voted on something that has affected us in a huge way, and you know that already, right? Mr. Suarez: And like I said, a lot of it is -- a lot of that is -- Vice Chair Spence -Jones: It's not -- Mr. Suarez: -- due to overtime. City ofMiami Page 82 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: Yeah, but it's not -- Mr. Suarez: I don't want to say that -- Vice Chair Spence -Jones: -- just your fault. It's not being thoroughly briefed and us all really understanding what kind of impacts it was going to have on us in the long run, but we're here now. We can't talk about what happened in the past. We got to focus on right now. And I'm asking you, Bobby, all of us are asking for the firefighters to dig deeper and to look harder to see what we could do to help reduce this debt so that at least these folks can continue to work. That's really what it's all about. So that's my only plea. And again, I don't have a problem with begging. I'm begging you as I'm begging the rest of them, please continue to work with us to do that. That's it. Chair Sanchez: Commissioner Regalado. Commissioner Regalado: Thank you, Mr. Chairman. Mr. Manager, question. The president of the union have said that if you agree to the extension, they will give 14 million, same that they have agreed on this coming budget. Your rejection of the proposal of extending the contract, is it because it's a bad deal for the City or because it looks bad? Mr. Hernandez: Commissioner, I think that -- there are two separate issues we have to deal with the budget as the present problem today. The contract is, I would say, much more complicated, and I would hate to just jump in and send an extension for an additional year without having the proper time to analyze it and discuss it. I think that we have to treat it as two separate issues. Commissioner Regalado: Yeah. But you want to do that. He doesn't want to do that, so the bottom line is -- Mr. Hernandez: Well, I think that's -- and I'm glad that we're having this conversation, this discussion here at this point in time 'cause that's the sticking issue with Fire. I still have a concern that would like for his salary reduction to be higher, to come up to the 8 percent rather than the 3 percent because we should be fair in doing that either that tier salary reduction and/or equivalent. But think that we can work on those issues. The concern is the extension, and at this point, you know, I can't recommend it. However, if there's something that, you know, the City Commission would be willing to consider, I don't know. I would not recommend it at this point in time, butl also would like to, you know, hear some feedback from the Commissioners. Vice Chair Spence -Jones: Well, I'm -- Commissioner Regalado: The problem -- I'm sorry. Just to finish -- is that you have all the information. You have all the power to make a deal or not, and we need to base our vote on your recommendation. But at the end of the day, if you don't recommend the extension of the contract, he's not going to go for the 14 million and we're back to the 14 million hole. Mr. Hernandez: Commissioner, this is quite open. I think we have -- it's not that complicated. We sort of laid it out. I think that he needs to do more in rearranging the components that he's offering because we need to see more on the salary reduction from Fire, and then the issue is the one-year extension. And today's the day to, you know, where we can get direction, directives, ideas, comments from the Commission. Vice Chair Spence -Jones: But don't have a problem -- Mr. Hernandez: I'm not recommending it. City ofMiami Page 83 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: -- with saying it, you know. Commissioner Gonzalez: Mr. Chairman. Vice Chair Spence -Jones: Bobby, we need you to do that. We need you to work within the parameters. We got to get this done. It's like -- I'm not going to go -- I'm not playing no politics. I'm telling you straight up. We need to make sure we saving these projects, these programs. We need to save the City. We just need you to work with us. I'm saying it to all the firefighters. We support you 100 percent. This is what we need. Mr. Suarez: And I'm telling you, I can guarantee that for two years, so $28 million of budget reduction. I'm not saying reinstating what the City is taking back. I'm saying we will give you two years of those $14 million a year in reduction. Chair Sanchez: And we -- Mr. Suarez: My organization is sitting down with the Manager with a confract, with a legally binding agreement. We're sitting down right now agreeing to concessions. The thought that we wouldn't do this a year from now just because we have a confract, clearly our history doesn't show that. Vice Chair Spence -Jones: I know, but Bobby, let me just say this -- and you don't mind me calling you Bobby. I mean, we here -- we're here for a reason, and we -- and I don't want to keep rehashing because every -- no one really wants to say that, but that's what it is. There was a decision that was made by all of us sitting up here that put us in this situation. We got to live with it now, right? All we're asking for you to do and everybody to do is to work with us. And I'm saying to you -- I mean, the Manager's saying for whatever reason, I'm sure that he's been advised, you know, from staff that this is -- instead of -- we already know we're going to have a issue next year, so we know we're going to be facing another issue next year, so I'm sure that's why he's recommending that we can't do the year extension and the salary decreases, you know. We need you to -- you don't have to give us the answer on the spot right -- and I don't want to put you on the spot. We didn't put anybody else on the spot, so we shouldn't do that to you. I'm just simply saying to you that we need for you to work with us so that we could get there. That's all. We need for you -- you are the 900-pound gorilla. We saved the best for last. Mr. Suarez: I just don't want too much emphasis to be put on the one-year extension issue. It's no different than the situation we're in right now. Vice Chair Spence -Jones: I know that, but Bobby, obviously, for whatever reason, Finance and everybody else feels that, instead of us being back in this same position once again, we just need a little room. You're not going anywhere, and we don't want any of these programs to go anywhere. We don't want people to have to go anywhere, so just work with us. That's all we're asking you to do. Just work with us. Chair Sanchez: Commissioner Gonzalez and then Commissioner Sarnoff. Commissioner Gonzalez: Let me venture to ask a question. You're asking for an 8 percent across-the-board salary reduction? Mr. Hernandez: Commissioner, because in conversations that we've had -- Commissioner Gonzalez: That's what you're asking for, right? Mr. Hernandez: -- he doesn't favor the tier salary reduction. He has said I'd rather have one that is across-the-board. City ofMiami Page 84 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Gonzalez: I understand, I understand. Mr. Hernandez: So when -- Commissioner Gonzalez: So you're asking for an 8 percent -- Mr. Hernandez: Yes. Commissioner Gonzalez: -- across-the-board? Are you willing to give him a one-year extension in the other hand they give you the 8 percent across-the-board? Mr. Hernandez: And, Bobby, you said that this is for two years? This would apply to this year and the following year? Mr. Suarez: All I've asked for is one year beyond what we already have. One year beyond what we already have two years from now. Mr. Hernandez: Yeah. Mr. Suarez: And if a year from now the City's in financial trouble, I'll be right back here like I am right now. Commissioner Gonzalez: But remember, right now, I don't want to violate the charter or, you know -- you too are negotiating. Mr. Suarez: Yeah. And there's plenty of things -- Commissioner Gonzalez: I'm just posing a question. Are you willing to give him the 8 percent that he's requesting if he gives you the one-year extension? Mr. Suarez: The Manager has asked me to come up with $14 million in true -- Chair Sanchez: Let's -- Mr. Suarez: -- real dollar salary and benefit reductions. I don't think he will disagree that I've proffered $14 million in real dollars of salary and benefits, and I think the Manager would agree with that. Chair Sanchez: Hold on. I just want to make sure I caution the Commission. The Commissioner is not negotiating a -- Commissioner Gonzalez: Right. Chair Sanchez: -- contract here. Mr. Suarez: Right. Commissioner Sarnoff Absolutely. Chair Sanchez: The Commissioner is basically suggesting an idea -- Commissioner Gonzalez: Suggesting. Asking questions. Chair Sanchez: -- so the Administration can negotiate with the unions because the last thing you City ofMiami Page 85 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 want to do is be handed a -- let me not even get into it. Vice Chair Spence -Jones: And that -- Chair Sanchez: All right. That -- Vice Chair Spence -Jones: -- was the reason why I said let's not -- we don't have an answer now. I think that if you hear from us what we want to see happen, that puts us in a position that we don't create a problem. Commissioner Gonzalez: My point of view is that I believe not only in reference to the firefighters hearing, I believe that it should be the spirit of all the unions, collectively to make any kind of sacrifices to protect your coworkers. Vice Chair Spence -Jones: Yeah. Chair Sanchez: And your members. Commissioner Gonzalez: Okay. IfI were in a position that reducing my salary 8 percent will save four or five of my colleague's jobs, I will say take it away. Because let me tell you, as I told one reporter a while ago outside, whoever has a job today has to thank God and say, "God, thank you for letting me have a job" because there are thousands -- as a matter of fact, millions of people out there without a job. Vice Chair Spence -Jones: Yep. Commissioner Gonzalez: And let me tell you, it's not a City ofMiami illness. Vice Chair Spence -Jones: Yep. Commissioner Gonzalez: It's an epidemic on the United States and all over the world. I have relatives in Spain. I have relatives in Germany. I keep in contact with them, and it is all over the place. It's all over the place. So you know, whoever has a job today has to go to church -- Vice Chair Spence -Jones: Be thankful. Commissioner Gonzalez: -- whatever denomination -- Vice Chair Spence -Jones: Be thankful. Commissioner Gonzalez: -- it is, and say "God -- Vice Chair Spence -Jones: Thank you. Commissioner Gonzalez: -- thank you." Thank you. Chair Sanchez: Commissioner Sarnoff. Commissioner Sarnoff You know, Bobby, the -- at the workshop, I suggested that there was a tale of two sister jurisdictions, Broward County Sheriffs Office and Broward County. The Broward County Sheriffs Office did not layoff anyone, through furloughs, through salary reductions; nobody was laid off. In Broward County, they're now going past 1,400 employees terminated. Just a point of view. But here is the 800 pound gorilla, and this is what no one wants to talk about in this chamber, and that is the very atom of how we get to pension, any problem we have, and that is salary. And Bobby, here's a perspective. If you truly are a rescue City ofMiami Page 86 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 department -- and I know I went through your indoctrination. I remember what it was like. Eighty percent of what you do is rescue -- then bear this in mind. If what the Mayor says is true, and if your executives make $243, 000, plus 26,000 in overtime -- and not be in the best of math - - that would be about $269, 000. And if in fact, your lieutenants make $150, 000 and 13,000 in overtime, $163, 000. Now, Mr. Mayor, I just didn't hear what you say the captains made, but I did hear they made 29,000 a year average in overtime. Keep this in mind, Bobby. The average anesthesiologist, a man who went through eight years of college, four years of training, earns $259,498. The average general surgeon earns $228,839. The average psychiatrist, which I think we all could use here, $173,922; obstetrics, $203, 270; a pediatrician, a person that brings a person into this world, $132,953; the average family practice, $137,119. That is a perspective. I was taught stay in school, go to college, learn, get trained, and you will have the best paying job. I could kill my guidance counselor for not telling me to be a fireman. I was wrong. Keep a perspective about you. Keep a perspective. I -- look, Bobby, I understand what Coral Gables makes. I know City ofMiami Beach. I know what the County makes, and I know how you all ladder each other, and it's good practice 'cause you're a good president. You're a good president for the union. But trust me when I tell you, this business model is broken. This City is going to be functionally bankrupt next year. No two ways about it. We are the California of municipalities. We're on the verge -- and maybe we should just consider approaching a bankruptcy judge and saying "are these salaries fair?" Now, there's a structural problems here, and it's got to be worked out on the pension, but for today and today only, it is in the power of the firemen in this City to set the example for every other union member, to shoulder the responsibility to every taxpayer in this City. You guys make a fine living. You deserve to make a fine living. You're the greatest group of guys I've every experienced. If there's honor, it's in the Fire Department, but you need to show it, and you need to demonstrate it to everyone. You need to lead by example. You need to take your foot off the neck of the City. I know you want something in return, but there's a new normal out there. There's a whole new world out there. There's an abject disconnect, Bobby, between folks that work for government and people that support government, the taxpayers. They are absolutely hurting out there. They are absolutely collapsing under the pressure of government. And you know all the statistics I could quote you. I could quote you how all public unions have increased 23 percent a year for the past five years. You know that. You could quote it better than me. There is a taxpayer revolt. The first day I got on this dais, I warned everybody there was a taxpayer revolt. All you're seeing is a perfect storm. Three things have come to bear: (1) the taxpayer revolt; Tallahassee's reaction to it, (2) new contracts that can no longer be afforded devaluing property values, so your revenues go down and your expenses go up, and (3) you have the most cataclysmic stock market crash since the Great Depression, and for anybody here who thinks it's going to 10,000, watch the day it hits 10,000 because it'll be at 8,500 the day after. This is a false stock market, and I know it 'cause I'm playing in it, and I know when to get out of it. This is not a sustainable situation, and anybody that thinks it is, you better have a fast draw on the trigger because you better get out as quick as you can. So I ask you, as a Commissioner, to really consider what you're going to do with the Manager. And I know why he doesn't want to enter into another contract. Your contracts reference 300MOUs (Memorandums of Understanding). He can't even read all the MOUs in time to enter into any contract extension. You know, the two people on the dais that made the most sense today happen to be Commissioner Gonzalez and Commissioner Spence -Jones, and they're actually just coming to you and saying there's no hiding. There's no deception. Spence -Jones is begging, and I know why she's doing that. Gonzalez, to his credit, is -- he's exploring every option he can. You know, I wish I didn't know what I knew, and I don't know how this comes out, but either we're going to be the Broward County Sheriffs Office and hold our head up high or we're going to be Broward County. And you know what I brought with me? I brought Chicago's notice of outplacement programs for the city employees that the City of Chicago had to fire, so they gave assistance to the thousand people they let go. It's happening all over the United States. It's not just us, but we are the poster child of the municipalities that are in trouble. We are the cutting edge of the sword. We are the tip of the spear. You can either push the spear threw our heart or you can let up. Thank you. City ofMiami Page 87 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Suarez: Well, ifI may? Chair Sanchez: Yeah. Mr. Suarez: The -- in the references you've made to salary, I have to absolutely challenge those figures. I don't represent Fire executive, but tell you, there's not a single Fire executive that makes $240, 000, and on top of that, they don't make a penny of overtime, not a penny. So I have to question those numbers. And I know some of those figures come out as mathematical averages of overtime spread out amongst everybody, special pays spread out amongst everybody, and I -- like I think I mentioned, you know, a lot of this -- $6.5 million a year in overtime. That is salaries our people are making. Those are split up in special pays that you average, tacked on -- I think the Fire chief had $40, 000 of overtime in special pays associated to him that he does not make. I don't know how some of those figures come up with. I'm telling you, I'm willing work with you. Fourteen million dollars in pay and benefits my members have offered -- Vice Chair Spence -Jones: Okay. Mr. Suarez: -- and that's all I can say. And I'll continue to work with the Manager on that. Vice Chair Spence -Jones: So, Bobby, you have heard basically from all of us up here, the Manager -- I mean, we're going to be here all night trying to deal with your 900-pound gorilla, so you already know what we need to do. And Mr. Manager and Bobby, hopefully, you guys can work through this so that when this comes back in front of the City Commission, we can all be smiling because the City employees here are also being taken care of. And that's really it. I mean, we can debate this all night, but it's going to come back to the same thing. Mr. Suarez: All right. Vice Chair Spence -Jones: So -- Mr. Suarez: Thank you. Chair Sanchez: All right. Vice Chair Spence -Jones: Mr. Chairman. Chair Sanchez: Thank you. We have one more speaker, and then we're going to have the Mayor, and then we're going to take a half an hour recess, then we're coming back, and then we're going to vote on the issue, and then we'll continue the debate. All right. Ma'am, you're recognized for the record. Renita Holmes: Thank you. I am Madam Renita Holmes. My address is 1950 Northwest 2nd Court, business 6118 Northwest 7th Avenue, so I'm covering a lot of areas and space, butt want to thank you for the opportunity, Mr. Chair, Madam Commissioner to bring forth your real face. I ran down here from our CAA meeting and I shared with my board the fact that -- and we discussed that this was going on not just on the County level for us, but the employees. You know, the fact that I'm here today and I'm standing here shows that there is some invaluable employees and invaluable civilian service providers on your staff and I want to come to tell you the importance and be a factual evidence of what performance is for the Model City NET and for the Community Relations Board, and also the fact that they're mostly women. You know, we all got a mama, but when you talk about the cultural disparity and we talk about the indicators of leadership, we say what's indicative of true leadership is that it creates leadership, even if it's in employment or even if it's in citizen participation or even if it's just in family, and I'm talking about the division the NET offices -- and I can say the same thing about Overtown, but I'm going City ofMiami Page 88 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 to represent Model Cities and Community Relations Board. It handles people with disability. It brings together volunteers, and we know we can't put a real value on free help right now. We can't really get paid help to relinquish just a little bit so we can continue to help ourselves, but my situation is is that these people have performed with disparities and citizens that hardly get any representation or voice. And I'm just going to tell you that are persons with disabilities, person who have an indifference from one culture from Liberty City to Havana, they have been the bridgers and the gapers [sic]. For me as a business owner and a citizen, they have been the infill of education, they have been the beacon points and the guidelines; they help communication, the collaboration, and coordination, and then to recruit volunteers. There is a value on that that we can't do it. But in the end, I want to tell you, when I look at the math -- and I'm closing -- Mr. Chair, what you look at is performance. I've watched this division and these departments perform with less budgets as time goes on and do more. You have to do the math, and you have to place the values and the integrity of these employees first. And then I'll tell you, for each and every one of them, there are about another hundred women that will say the same and petition that we're drafting, please -- Chair Sanchez: Thank you. Ms. Holmes: -- Madam Chair, save the Model City NET employees and save our Community Relations Board. Otherwise, in times like this, there will be no peace. Chair Sanchez: Thank you. All right, Mr. Mayor, you're recognized for the record. After your statements, we will take a maybe half an hour recess. Mayor Diaz: Mr. Chairman, thank you for the opportunity to address you again. I had not planned on doing this and it's unfortunate that have to be back before you 'cause I know you're all tired and you want to go to your break. Let me just say before I want to say what really want to say, that really congratulate the last statements that heard from Commissioner Gonzalez and Sarnoff. At the end of the day, we've heard a lot of great things tonight, but at the end of the day, we have to deal in reality. The reality is we're still $28 million short of where we need to be. The reality is that, on the record today, some speakers talked about significant increases in this deficit for next year. That's the reality. That's what we're facing this year, and that's what you're all going to have to face next year. It is amazing to me -- and I think you were eluding to that, Commissioner Sarnoff, in your last statement -- that we'll negotiate because millions of people in this country today are losing their jobs, in factories, in law firms, and everything in between; and as far as I know, they're not going to their boss and negotiating. They're saying I'm happy to have a job. I'm happy to have a job. What do I need to do? Do I need to work more hours? Do I need to get paid less? What is it that need to do to keep my job? It is morally outrageous to me, quite frankly, that we're sitting here negotiate because at the end of the day, what we're all trying to do is we're all trying to protect jobs. Because if we are unsuccessful in getting these concessions, there is no choice but to get rid of more jobs, so this absolutely makes no sense to me. And I really -- at the end of the day, I don't understand what it is thatl am missing, particularly as you just said, Commissioner Sarnoff, with the kind of salaries that we're talking about on a comparable basis to what the rest of this world is making and to the rest of the sacrifices that those people, people that we represent, are making each and every day in our city and in cities throughout our country. So I just wanted to say that. But that's really not what I'm here to talk about right now. What I'm here to talk about is the fact that early this evening Commissioner Regalado took a very cheap shot at me, which actually should come as no surprise because he's been sitting on this dais for over 10 years talking about half truths and innuendos and rewriting history. Commissioner Regalado: Mr. Mayor, I did not -- Chair Sanchez: Commissioner Regalado. City ofMiami Page 89 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mayor Diaz: I'm not finished. Commissioner Regalado: -- took a cheap shot. I just -- Mayor Diaz: All right. Chair Sanchez: Commissioner Regalado. Commissioner Regalado: -- presented -- wait a minute. He just attacked -- Mayor Diaz: Mr. Chairman. Commissioner Regalado: -- an elected official of the City of Miami. You don't have the right -- Chair Sanchez: You're out of order. Commissioner Regalado: -- because you have been living as Mayor of Beverly Hills, and he is Mr. Mayor. Mayor Diaz: Mr. Chairman, I'm not -- I have the floor, don't I? Commissioner Regalado: Well, you do have the floor, but you don't have to attack me. Chair Sanchez: Commissioner, you're out of order. Vice Chair Spence -Jones: Guys. Commissioner Regalado: Oh, yeah. He's out of order. Chair Sanchez: Mr. Mayor, you're recognized. Vice Chair Spence -Jones: Okay. All right. Mayor Diaz: Well, Mr. Chairman, I believe that this attack -- Chair Sanchez: You have the floor, Mr. Mayor. Mayor Diaz: Thank you, Mr. Chairman. I believe that this attack came when someone that apparent cannot maintain his cool indicated that I was living in Beverly Hills and that my office was spending $3.6 million in purchase orders. The facts are that purchase orders, which, by the way, I just learned tonight, we all have in all of our departments. And let me give you some examples of what is in those purchase orders. Two categories. One is something called blanket POs. So, for example, you will look at a purchase order from my office and you'll see $415, 000 for Verizon Wireless. Now, I think you all agree that my office is not spending $415, 000 on Verizon Wireless, neither is your offices. What it is is they put a blanket PO in our department so that when we purchase these services, that's where we get them from. I have something called Ex Ped Ex, which is $115, 000. I have something called Sharp Business, 300,000; DHL (Dalsey, Hillblom and Lynn), 88,000. So there's a significant amount of money that has to do with blanket purchase orders that are citywide. There's also a significant section, as you all well know because you've been here for eight years and saw how hard my office has worked to secure grants, and we have secured millions in grants for Elevate Miami, Children's Trust, Big Brothers/Big Sisters, Miami Nice, The Parent Academy, Families First, the Holmes Mentoring initiative, after -school programs, and on and on and on. Millions of dollars. All of those payments are reflected through this office. It's interesting because if you look at Commissioner Regalado's purchase orders, he's got a quarter of a million dollars for something called Quality City ofMiami Page 90 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Wiring. I assume he hasn't spent a quarter million dollars in wiring for his office. He also has $115, 000 for something called Ex Ped Ex; 53, 000 for Aramark Refreshments; 21, 000 for Nestle's -- I assume he's not buying chocolate bars -- 25, 000 for coffee, 30, 000 for photo labs. I assume he's not taking that many pictures. So, personally, frankly, Commissioner, it is I, that I am offended because you should know better. Regrettably, you got this information from Charlie Cox and the unions because we all know that, today, you are their mouthpiece. Thank you, Mr. Chairman. Chair Sanchez: Thank you. All right. Commissioner Regalado: IfI may, just to respond, and with all due respect, to the Mayor. I've been here 14 years --15 years now. There is not a single year in which my office budget has been over of what this Commission and the Manager has approved. Actually, there is a history of 15 years of our office never spending our allocation. We have been able to give this Commission $80, 000 of our office budget one year to supplement food for the elderly. We have been able to give $10, 000 for the police in order to fight prostitution with overtime in Flagami. And the fact of the matter is that I pointed out that as part of the culture of spending because every time that I come here in the morning, a lot of time -- and I know that you have responsibilities because you are the face of the City ofMiami -- I see (rucks bringing tables and chairs and all that because you have several activities, and the reason I pointed that out is because there was also -- not from your office -- the -- what they call the afternoons or whatever in MRC (Miami Riverside Center) with the drinks and all that. And I was pointing out because, Mr. Mayor, frankly, this city has been spending more than we should have. And now I know that you have done a good job, and I commend you for cutting the Mayor's budget $10, 000 you cut from travel and per diem. You know that I have never ever spent one single cent in travel of the taxpayer money in the 15 years that I'm here. I had gone to Tallahassee by myself. I pay my trip. I just think that it's unfair to attack everyone, and I do agree with you that we need to do something about the salaries. I have also the cell phone bills from all the departments here. This -- Charlie Cox didn'tgive me this, nor he didn'tgive me this about the Finance Department and the people that they want to layoff and reduce. The fact of the matter is that employees are giving information, and I just want to tell you that I'm disappointed that you said that I took a cheap shot. I think it's about transparency. It's about telling the truth to the people, and I know that you have done a good job selling Miami throughout the United States. That, I commend you. But also this city has been living like Beverly Hills, and you might not accept it but that's the way it is. Personally, I'm willing, number one, I have said on the record that the Mayor -- the next Mayor should reduce his salary by $53, 000 because it should go back to what the voters said when the executive Mayor position was created, which -- and then because of that, 60 percent of that salary is what the Commissioners make. I would ask that the members of the Commission to recommend to the Manager to start a process to reduce 25 percent the pension of the elected officials, beginning October 1, and to accept the recommendations of the different members of the Finance Committee. I know that your responsibility is the budget. I'm just here to vote -- Chair Sanchez: All right. Commissioner Regalado: -- and hopefully -- the only thing I agree with you is that we should not raise taxes, and for that, I commend you. But you just cannot blame employees, nor you can blame me because I have been a Commissioner that never ever have spend the whole budget of the office, and that's the facts. Numbers don't lie. So you're not the person to lecture me on saving money or wasting money because I have never ever done that with the people's money. Thank you, sir. Vice Chair Spence -Jones: Mr. Chairman, can we please take -- Chair Sanchez: All right. City ofMiami Page 91 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: -- a break? Mayor Diaz: Can I just say one last thing? It is about telling the truth, Commissioner. And telling the truth is not implying to the people ofMiami that my office is in a spending spree, spending $3.6 million when you know that to not be true because my office has also produced surpluses. And finally, what I'll say is let's not live in denial. This isn't about -- although I don't particularly like it -- having a little cocktail party at the MRC. What is producing this $118 million budget gap is the salaries that we pay and our pension obligations, period, end of story. And if we don't recognize that, we're in denial, we're putting our head under the sand, and we're spending a lot of time with smoke screens that are not going to resolve this problem today and not going to resolve it for the next Mayor who, I hope, will be -- will not be the last Mayor of the City ofMiami. Thank you. Vice Chair Spence -Jones: Thank you, Mr. Mayor. Chair Sanchez: Thank you. Okay. We're going to stand in recess. We're coming back in half an hour. Vice Chair Spence -Jones: 10:30, right? Chair Sanchez: Yes, 10:30 we will be back. Mr. Hernandez: Mr. Chair. Chair Sanchez: We've had enough for today. Mr. Hernandez: No. I -- it was just a clarification. When Armando Aguilar was addressing you before, he and I were discussing our prior negotiations. About two weeks ago, yes, we were discussing a $4 million contribution from them, and the next week, because of the additional, let's say, gap that we have in our budget, I sent out the memo of 28 million that I was requesting ten from Police, and I wanted to sort of clarify this on the record, and that I will continue to work with Mr. Aguilar to further the negotiations and get to an agreement. Thank you. [Later... Chair Sanchez: All right, ladies and gentlemen, the budget hearing is back in order. We took a half -an -hour recess to get something to eat. We are waiting for one Commissioner. We have four -- at this time for the record, Commissioner Gonzalez has not gotten here, but we will wait for him -- till he gets here. But I think that -- we were able to close the public hearing in this process. I want to make sure that nobody was denied due process to address this Commission on such a very important issue, which is the budget and the millage. "[Later...]" Chair Sanchez: Motion to adjourn? Commissioner Gonzalez: Second. Commissioner Sarnoff So moved. Mr. Hernandez: Mr. Chairman -- Chair Sanchez: There's a motion and a second. City ofMiami Page 92 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 BH.2 09-00916 Office of Strategic Planning, Budgeting, and Performance Mr. Hernandez: Mr. Chairman, I need to -- Mr. Soldevilla: We -- Mr. Hernandez: -- clarify something because there was a statement made a little while ago saying that if we agree with all the unions that there would be no layoffs. If we agree with all the unions, all police positions are protected. However, the 87AFSCME (American Federation of State, County, and Municipal Employees) and the 13 sanitation, those are still in the -- you know, happening. Ms. Bru: And what about the rest? Mr. Hernandez: And the 17 nonunion also, okay. I wanted to be totally clear on that. Chair Sanchez: Okay. Mr. Hernandez: When Charlie was here, I brought it up. I think when Joe was here, I brought it up. But I wanted to be sure that everybody understands that if all unions agree, what we're protecting is the police officers. There will be no impact to Police. But the other areas, yes, they will be impacted. Commissioner Gonzalez: The -- Chair Sanchez: All right. Commissioner Gonzalez: -- even if the Fire union gives you what you're asking for? Mr. Hernandez: You mean, in excess ofwhat I wanted originally? Commissioner Gonzalez: Yeah. Mr. Hernandez: If that's the case, then we have to take a look at if we have any excess there. And then if we do, we can use it in the best possible way. Commissioner Gonzalez: Okay. Because like we have been advocating, you know --I mean, everybody needs to pitch in, but we need to, you know, make sure that everyone is protected, so - Mr. Hernandez: Yes. Commissioner Gonzalez: All right. Chair Sanchez: All right. ORDINANCE First Reading AN ORDINANCE OF THE MIAMI CITY COMMISSION DEFINING AND DESIGNATING THE TERRITORIAL LIMITS FOR THE CITY OF MIAMI FOR THE PURPOSE OF TAXATION; FIXING THE MILLAGE AND LEVYING TAXES IN THE CITY OF MIAMI, FLORIDA, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30, 2010; CONTAINING A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. City ofMiami Page 93 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Votes: 09-00916 Legislation FR/SR.pdf 09-00916 Summary Form.pdf Motion by Chair Sanchez, seconded by Commissioner Regalado, that this matter be PASSED ON FIRST READING PASSED by the following vote. Ayes: 4 - Commissioner Gonzalez, Sarnoff, Sanchez and Regalado Absent: 1 - Commissioner Spence -Jones Chair Sanchez: So at this time, what I'm going to do is I'm going to pass the gavel to the Vice Chair, and we have to pick up BH.2, which is an ordinance on first reading, which is the millage. Vice Chair Spence -Jones: Yeah, and I'm going to say this, Mr. Chairman. I really don't want to even discuss this until the other -- all five of us are out here. And already, from day one, from the beginning, I already told you the day that had an issue with us even voting on this item, okay. We sat here and listened to everything, and I did as I was -- it was communicated to me by the City Manager and staff saying that it was important for us to go through the public hearing process so people have the opportunity to put their viewpoints on the record. I still think and I still feel that we need time to actually digest this budget, and for me to take a vote on this right now, I mean -- I wanted to start the meeting off saying I wanted to continue it fi^om day -- from the beginning, you know, and -- Chair Sanchez: Madam Vice Chair, I was hoping that we would have five Commissioners. Now, this is, by far, the biggest responsibility that we have is to adopt a millage, and it's our responsibility to adopt a millage and a budget. We have the opportunity to do it on first reading, and then we get to address this issue again on second reading. I think that we should move forward, and if the votes are there to set the millage and also maybe not come up with a budget or approve the budget -- we got time to get the budget done, butl think today we've had an opportunity to listen to the concerned residents that took time off from their busy schedules to come here and address this Commission and now we're to a point where it is in our hands to deliberate and vote on this issue. Vice Chair Spence -Jones: Right. And Mr. Chairman, let me just say this to you. By all means -- and we did go through the process -- I'm not saying that we need to defer the item, butt said in the beginning of this hearing that was very uncomfortable about voting on a budget or millage or any of that because there was still a lot of unanswered questions. I do not like the fact that got this budget on two days before the actual hearing, and I'm asking -- I asked Mr. City Manager and Mike and everybody else, there were key things that still had not gotten closure on, and I just don't think it makes good sense for us to make a decision that could affect the whole entire City. I think we gave great direction today to all of the unions that were out here today. I think that we gave great direction to City staffers. They know what they need to do. I think that there's no issue at this point -- and Madam City Attorney, you tell me. You can correct me. This item itself can be continued, and we can come back and just vote on this item; correct? Julie O. Bru (City Attorney): You could continue it so long as then we look at the time frames, you know, between whatever it is that you continue it to and the 30th and the notice requirements and all that, but you could. Vice Chair Spence -Jones: Okay. And based on what you told me earlier before we even started this hearing -- I was trying to be a good sport -- but you told me earlier that we had enough time to make that happen. Ms. Bru: We looked at the calendar, and there would be enough time between now and the 30th. Vice Chair Spence -Jones: Okay, so I -- Mr. Manager, I think that it is -- and I'm going to appeal to my fellow colleagues. This is a lot to swallow, a 236-page budget that if we vote on the millage tonight, we are stuck with that millage tonight. We're stuck with that budget. And City ofMiami Page 94 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 everything that you guys are talking about, we want to fry to save and we want to have happen, it's not going to happen, so let's not play around with it. So I'm saying to you, as the District 5 Commissioner that has to represent the communities that I serve, I'm not comfortable with voting on this. I'm not comfortable with what was presented. And I've already communi -- I started communicating that since early this morning, so it hasn't changed for me. Yes, I got more information. I think the unions will be able to sit down and work through something. Hopefully, when we all get back together the next time, we're a lot closer than where we are, but to vote on something where I know these programs are going to be out, like NET (Neighborhood Enhancement Team) and the homeless program, everything, if we vote on something like that right now, we got a problem. And I hear that you guys said we could shift things around, but it ain't that much shifting to do, so Mr. Chairman -- and I'm going to just say it to all my fellow Commissioners sitting on here. You know, for the first time, let's really before we make a decision to vote on something that could really have an impact on many people's lives, all I'm asking for is for us to have time just -- let's just have time. We've done it for other things. We've continued Miami 21; we've continued Marlins Stadium. I can think about three or four other things we done continued, so I don't want there to be, "Oh, well, Commissioner, you know, we continue this, it's going to be additional cost associated." That's crap, and I'm going to tell you why. Because it's only convenient for us when we want to do something. When individuals have their own personal agenda, then that's when we want to do it. And I'm just saying, District 5 Commissioner, I think that it's important for me to represent my constituents fairly, I would ask for my fellow Commissioners to at least support us in this. That's all I'm asking. Commissioner Gonzalez: Mr. Chairman. Pedro G. Hernandez (City Manager): Mr. Chairman, ifI may real quick. I wanted to point out that if you -- the millage rate that you approve tonight cannot be increased in the second hearing. It can be reduced, but it cannot be increased. And that's my understanding. Ifyou so desire to give yourselves some flexibility, I would recommend that you considered a millage rate of let's say, 7.99. That will give you an additional ten million that when the second hearing comes around, if you want to bring it down to 7.67 you can still do it, but if you do the reverse, you cannot increase it at the second budget hearing. Vice Chair Spence -Jones: Let -- and I hear you, Mr. Manager. For me, it's not even about just the millage itself. I want to understand what kind of fiscal impact this is going to have on the district in which I serve? Whether or not it's 7.9, 8.4, 7.69 does not -- to me, that's irrelevant. I started this hearing off and I did everything you guys asked me to do. I almost -- I sat here really just trying to deal with everything that was being said, but very uncomfortable with it fi^om day one. And I'm asking you guys to understand or at least listen, you know, to the fact that, you know -- I would do this for you -- Chair Sanchez: Pete. Vice Chair Spence -Jones: -- Sanchez. Chair Sanchez: All right. Vice Chair Spence -Jones: I would do this for you, Sarnoff, and I would do this for you, too, Regalado. Ifyou guys came and said to me -- and we even had it happen on the dais, I'm not comfortable, I want to defer something or I want to continue something -- we all support each other. I don't understand this. Chair Sanchez: Do -- first -- all right. Do you have a motion to defer? Vice Chair Spence -Jones: I'd like to make a motion to continue it until -- and I want a date from City ofMiami Page 95 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: To continue it? Vice Chair Spence -Jones: --I would like a date from my Madam City Attorney. Chair Sanchez: No, no, no. You need to get a second. Let's get a second. Vice Chair Spence -Jones: Okay. Chair Sanchez: Let's get a -- is there -- first of all, you need to get a second to continue. Is there a second to continue the setting of the millage? There is no second. The motion dies. So I'm going to pass the gavel to you. Commissioner Gonzalez: Let me -- can I -- Chair Sanchez: Sure. Commissioner Gonzalez: -- address the Commission? Let me tell you what my problem is with seconding this motion. The problem is that the Commissioner is talking about the unions meeting with the Manager and coming to an agreement and finally agreeing to help on the situation. That's all great. The problem is that we're running out of time. We have two weeks. We have two weeks to make a final decision. The unions, by their own laws or mandates or whatever, have to give their membership ten-day notice of the proposal, okay, that they're going to present to the membership. So if we have two weeks and we can count in ten days, we only have three days, okay. So you know, it's a matter of -- I mean, even if the unions decide -- tomorrow is Friday. I'm sure that tomorrow nothing is going to get done. It puts us back on Monday. Let's say that on Monday -- and they're not going to sit down and solve the situation in one day. It's going to take three or four or five days to come to an agreement. Once they come to an agreement, they need to notify the membership, giving ten days to have their meetings and have the membership approve whatever their proposal is. If it doesn't get approved, then we have no agreement, then we have to go with the plan. Vice Chair Spence -Jones: Right, but then -- Commissioner Gonzalez: Okay. Vice Chair Spence -Jones: But, Commissioner Gonzalez -- and again, I'm -- what -- Commissioner Gonzalez: And -- Vice Chair Spence -Jones: I totally understand. Commissioner Gonzalez: But let me finish my -- Vice Chair Spence -Jones: Your thoughts. Commissioner Gonzalez: -- thought. And we need -- I think the only obligation that we have tonight is to set the millage, correct? Chair Sanchez: Yes, not the budget. Commissioner Gonzalez: Because what we have is a proposed budget. We can vote in favor of this proposed budget and then change it for the second reading. We can just vote on the millage and don't approve the proposed budget, and then approve the final budget. Am I correct? City ofMiami Page 96 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: No. Ms. Bru: You have to approve a tentative budget today because -- Vice Chair Spence -Jones: And whatever you -- Ms. Bru: -- that would be noticed -- Commissioner Gonzalez: Okay. Well -- Vice Chair Spence -Jones: And whatever -- Commissioner Gonzalez: Then we have to do what we have to do, but the problem is that we are running out of time. We don't have time. And we have to have a balanced budget by September 30. Am I correct? Chair Sanchez: Okay. Mr. Hernandez: Yes. Vice Chair Spence -Jones: Right. Chair Sanchez: Vice Chair, could I be recognized for the record? Vice Chair Spence -Jones: Yes, you're recognized. Chair Sanchez: I have -- I passed the gavel to you. I would like to make a motion -- Commissioner Gonzalez: And I'm sorry, Mr. Chairman. And let me tell you, your district is going to be affected, but every single district is going to be affected. Vice Chair Spence -Jones: No. I'm not just speaking from -- Commissioner Gonzalez: You see -- let me -- Vice Chair Spence -Jones: -- my district. Commissioner Gonzalez: Yeah, but -- Vice Chair Spence -Jones: I'm speaking for all of us. Commissioner Gonzalez: For all of us. But let me tell you, for example, the issue with the police department. Vice Chair Spence -Jones: Yes. Commissioner Gonzalez: There was a time where I had a problem -solving team in Allapattah with ten police officers and one sergeant. It went down to three police officers and one sergeant. Sometimes when one of those police officers got sick, I only had two police officers and one sergeant. I know that if the police union do not come to an agreement to collaborate with the Administration to solve the problem and we decide to fire whatever amount of police officers we're going to fire --170, 190, 75, whatever -- I'm going to go back to the same situation thatl had seven years ago, three police officers and one sergeant. Maybe three police officers maybe less. And it is well known that my -- your district and my district are very -- especially the area ofAllapattah is a very, very tough neighborhood. We've been able to control it, thanks to a City ofMiami Page 97 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 problem -solving team, you know, fully staffed, doing a tremendous job, but I can't ask him to do miracles, you know. If they're reduced to two police officers and one sergeant, I know that I'm going to have -- start having again -- 29s, burglaries; assaults, shootings; same situation that I had seven years ago. So I'm going to be affected. My housing development agency is being cut off. It's going to be affected, you know. Vice Chair Spence -Jones: NET -- Commissioner Gonzalez: NET -- Vice Chair Spence -Jones: -- is going to be affected. Commissioner Gonzalez: -- is going to be closed down. It's going to be -- I'm going to be affected, and every one of us is going to be affected, you know, more or less, but all of us are going to be affected. Vice Chair Spence -Jones: Yeah, but -- and then that's my -- let me just finish, Mr. Chairman. I'm not saying that in my district, I'm the only -- I can only speak for the people that voted for me, and just like you can only speak for the ones that vote for you. Commissioner Gonzalez: Right. Vice Chair Spence -Jones: But we also have to look at the whole city from a -- an entire standpoint. Commissioner Gonzalez: Right. Vice Chair Spence -Jones: And I'm just saying, you know, just as we voted in 2007 for the union contracts for fire without having, you know, enough time to actually digest everything, I mean, to me, I think it's worth it. I -- do we have anymore union representatives left here in the house? Chair Sanchez: They're all gone. Vice Chair Spence -Jones: There's one left. I mean, ifI -- if you don't mind -- please, for one second. Chair Sanchez: All right. Vice Chair Spence -Jones: You can just put your name on the record. I just want to -- Carlos Avila: Carlos Avila, vice president of the FOP (Fraternal Order of Police). Vice Chair Spence -Jones: Okay. You see what this is all coming down to now, right? Mr. Avila: Yes. Chair Sanchez: Okay. You know this is something that we just cannot have happen right now. We cannot see all of these people without work, right? Mr. Avila: Correct. Vice Chair Spence -Jones: Okay. So Commissioner Gonzalez made a statement regarding the issue of -- there's this ten-day rule thing that you guys have -- Mr. Avila: That is correct. City ofMiami Page 98 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Vice Chair Spence -Jones: -- in order to let your membership know before you could come back to negotiate with us, if we're planning on bringing it next week. Is there any other considerations? Are there any waivers or anything of that sort that you guys in your particular union can do if there's an emergency situation? Can you call a special meeting or -- is that something --? Mr. Avila: We could try calling a special meeting, but I think the bylaws say specifically it has to be ten days. You have to give them ten days to absorb, if there is going to be any change. Vice Chair Spence -Jones: Okay. But let me ask this question. Whatever we would vote on for next week, correct, would have to be finalized on September 24, the last meeting anyway, correct? Mr. Avila: My understanding. Vice Chair Spence -Jones: Right. So that would give you your ten days, correct? Mr. Avila: Yeah. But the problem is sitting down and ironing things out. Vice Chair Spence -Jones: Right. So -- right, but I'm asking you a very pointed question. The issue is -- if we were to -- I'm putting the ball in your court because you're the only one that's left. Mr. Avila: Correct. Vice Chair Spence -Jones: If we were to move this or continue this to next week, giving everybody else time to kind of look at how we could shift things around, how we could make things happen, not just on the union side, but stuff like NET that we're frying to save and CRB (Community Relations Board) that we're trying to save, my question is, even if we have not come to an overall resolution within those ten days -- within that time period for next week, we have the time period up until the 24th for you guys to come to the table. Mr. Avila: Yes, that is true. Vice Chair Spence -Jones: Okay. So I'm just saying, Commissioner Gonzalez, we have the time. By September 24th, we have the time. Commissioner Gonzalez: I don't think we have the time because there is another essential problem. Vice Chair Spence -Jones: What's that? Commissioner Gonzalez: There have been so many mixed signals sent throughout this process -- Chair Sanchez: Yeah. Commissioner Gonzalez: -- that many people in the City believe that there is no problem, that nothing is going to happen, that -- you know. I have seen communications where people have been told "nobody's going to get fired. Everybody's going to keep their positions, everything is fine." And then you have another signal that says, you know, ten people -- 62 people are going to be fired, 12 people are going to be fired, no people are going to be fired. So people are not taking this situation seriously. They're not taking this situation seriously. They believe it's -- many people believe this is a bluff. Many people believe that this is something that has been created by the Administration to reduce expenses and to -- you know. And we had to -- we have City ofMiami Page 99 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 to send a very tragic and a very disappointing message, but it is the truth, that we have a problem, and that we're willing to take measurements and we're willing to do what it takes to solve the deficit and to solve the situation that we have. It's that simple. I mean -- and I don't see a problem on approving a tentative budget tonight and then -- listen, if the unions meet with the Manager and they solve all the problems and they come out of the room kissing each other and, you know, and going out to have a piece of cake and a Coke, hey, great. You know, everything has been solved. Then next time that we have the final budget, hey, listen, we don't have to fire anybody, we don't have to do anything. Vice Chair Spence -Jones: Yeah, but you're missing the essential part of it. The essential part of it is setting the millage. The essential part of which we didn't find out until -- I really didn't find out until -- Commissioner Gonzalez: Well -- Vice Chair Spence -Jones: -- maybe about two hours ago that once we vote -- until about an hour or so ago or two hours ago when I asked a very pointed question, okay, can we vote on this and then -- so let's just go ahead and get a handle, and on the 24th, I'll vote again. No, no, no, Commissioner. Whatever you lock in tonight is what it is. I can't even -- Commissioner Gonzalez: No, no, no. That's about the millage, not about the budget. Commissioner Sarnoff All right. Vice Chair Spence -Jones: Yeah, but -- Chair Sanchez: You're recognized. Vice Chair Spence -Jones: -- that's the point. Commissioner Sarnoff Let's call -- Chair Sanchez: All right. Commissioner Sarnoff Commissioner Sanchez has a motion he wants to make. Chair Sanchez: All right. I would make a motion to approve the current millage, which is at 7.6740. I will make a motion for the purpose of discussion. Commissioner Regalado: Second. Commissioner Sarnoff And we have a second. Chair Sanchez: Discussion. Commissioner Sarnoff Discussion. Go ahead. Chair Sanchez: Thank you. It has been a long day. It has. It has been a tough day. It certainly has. The reason why I made this motion for the operating millage to be at 7.6 percent is because we agreed on keeping the millage at 7.6. We agreed on reducing expenses at the City, and we agreed that we would do everything we could within our power not to touch the reserve. Now, reality is reality, and you've heard a lot of statements being made here today. During the past years, most private businesses have had to make significant cuts, not to mention individuals and their families. And they've had to make some tough choices because the economy has been a bad economy, and people are out there -- families are sitting at night in the dinner table discussing City ofMiami Page 100 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 how are they going to reduce their budgets and how are they going to reduce their expenses because one of them either have gotten laid off or has been reduced hours in work. Now, one thing that really got my attention today was the letter that was presented by the City ofMiami Finance Committee. You heard it. It's alarming. It clearly tells you this City is going to self-destruct with the current situation that we're in, with the salaries, and the pensions. It is up to us to make sure that we put the City back on track financially. And Commissioner Gonzalez made a perfect statement today. We cannot do this ourselves, and we need to make sure that we bring everyone to the table. This will send a clear message today with the legislative actions that we have taken to get the unions to come to the table and work with us to find a solution. I want to talk to you about one of the issues that really caught my attention that was a recommendation that was made, and that is to end defined benefits pensions for new workers. In other words, people that come in, they would have to go to a 401. I did some research. Research shows that 17 percent nationwide only have defined benefits, only 17 percent. They've all moved to defined contributions of 401. Ladies and gentlemen, it is very simple, and I'm going to bring it down to what people understand because people don't understand budgets, people don't understand actuaries, people don't understand productivity, people don't understand these $10 words. It's very simple. For every dollar that comes into this city, 80 percent goes to salaries, pensions, and benefits. We stay with 20 cents to operate this city. Show me a business that could survive based on those revenue versus expenses. It is unsustainable. This government for too long has lived beyond its means, and it can no longer afford to do that. Once again, I stated that every family has made sacrifices in this great nation. City employees need to do the same. Now, having said that, I don't want to fire anybody. First of all, I apologize because I cannot fire anybody. The City Manager fires individuals here, but I don't want anyone to lose their jobs. I don't want to contribute to this bad economy. These are people that work for us. They're family. They have families and they have expenses. It's a clear option that we have, and we have very few options that we have. I think it is unconscionable and unmorally [sic] for someone to say "I'm not willing to take a pay reduction to make sure that my colleague keeps his job." Tell that to millions of people who have had to do this in this great nation of ours, my wife being one of them. I think that we can work together. And the unions must come to the table on this issue because you know what? We talk about cuts, and we look at all the cuts that we've had. There's significant cuts. There are some things that I don't agree with. I don't agree on doing away with the NET offices. I think they're a vital source to our community, but we have that decision to make as a policy maker when we set the millage. Well, I'm going to have to come up with the Adminisfration. Maybe other Commissioners that want to keep the NET offices, we're going to have to come up with that three point something million dollars to keep NET. Other Commissioners may have a department that they want to save. Well, it's up to them to come up with that money, and I'll tell you why. We cannot ask the taxpayers to continue to pay taxes so we could continue to pay salaries and benefits. They're not going to buy it. We're all taxpayers here and we live in the city. We continue to do this, we're going to tax this city into poverty. We were number -one city in the nation in poverty. We've made significant strides, so I think we're number five now. But I guarantee you, we do this, we're going to head right back to two or three. The day of reckoning has finally come to this city. It's that simple. We cannot continue to punt the ball. We must have the political will to get this City back on track financially. What's happened in the past is you know what? The next Commissioner is going to take care of it. Maybe the next Mayor is going to take care of it. Somebody's going to take care of it, but no. We need to take care of it. You need to stand here and say, you know what? It didn't happen on my watch. This city did not go bankrupt under my watch, and I believe that we can do it. We can do it. I took some notes here, and I think the magical number is $28 million. Twenty-eight million dollars and we balance a budget. That's the magical number, $28 million. Now, if you look at the proposed budgets and the cuts that the City has done, it is significant cuts. I have never seen these reductions in departments. I questioned the Administration as to some of these departments, how they're going to operate. Because my greatest fear is to not have a level of service that our residents are not going to be satisfied with. Out of $118 million, the Adminisfration has done a great job in reducing $97 million. It is hard to cut those numbers, but we have to do it. That's the bottom line. We have to do it. And we do not want to raise taxes in City ofMiami Page 101 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 this city for a variety of reasons. I refuse to do it, period. And you know what? Don't talk to me about raising fees. Don't talk to me about raising taxes till we have been able to reduce expenditures and we have cut our budget and even has made a sacrifice here. Because you know what? Everyone is going to feel this pain. No one is immune. I have one question, Mr. City Manager. On the tier system, I hope and pray that the mayors [sic] and the Commissioners are included in that reduction. Mr. Hernandez: Commissioner, if they're not, they will be. Chair Sanchez: No, no. They better be. Mr. Hernandez: They better be. That's -- Chair Sanchez: Because I lead as an example. I've done it in the past, and I'll continue to do it. So I think once again, it to important that all of us work together. And I'm not going to beg the unions 'cause I'm not going to beg you for it. I think it is your responsibility to work with the Adminisfration because if you don't, in the eyes of the taxpayers, you're going to be seen as greedy individuals. And if you take this city into bankruptcy, it'll be on your conscience, not mine. I am prepared to work with everyone to make sure that we do save some of the departments, and I don't want no sal -- I don't want anyone to lose their jobs. That should be the last option on the plate for anyone to lose their job. However, the ball is in your court to negotiate with the Adminisfration. I made it very clear where I stand on this, butt want to elaborate on one thing. Our budget is 511, $511 million. Our total payroll is $383 million, and we only have 3,408 employees in the City. Compare that to the private sector. Compare that to anybody else. It is alarming. And Commissioner Marc Sarnoff talked about that tax revolt. It's out there. If not, go home and watch the news and listen to the radio. I hope that we could work together to solve this issue because we should look after the taxpayers and we should look after this City. And Commissioner Gonzalez said it best, if you have a job, consider yourself extremely lucky in these situations, in this tough economy because a lot of people out there don't a job. They're dying for a job, but they don't have a job. So that's why I'm making a motion for the 7.6 and not to raise taxes this year in the City ofMiami. Commissioner Sarnoff All right. We have a motion. Do we have a second? Commissioner Regalado: I second it. Commissioner Sarnoff Oh, I'm sorry. Commissioner Regalado, you're recognized. Commissioner Regalado: Thank you, Mr. Chairman. I think that raising taxes is not only something that sends a wrong message to the residents of the City ofMiami, but it's not intelligent. Whenever there is a crisis, economic crisis, national crisis, the federal government tries to reduce taxes because that's the only way that the economy will come back. We are proud to have a new city. We are proud to have so many residents that come to live in downtown. We have in Southwest 8th Street or Flagler, you can count dozens of empty space, commercial spaces. Actually, in downtown, on Southwest 1st Street, in one block, I counted eight empty commercial spaces. If we were to raise taxes, the people that owns those places would just pass on those taxes, the people that want to lease them. The School Board yesterday did their budget. They raised their millage minimum. They -- the Children's Trust have raised their millage very minimum. The County has a flat rate. And so if we don't do this, the people will get their bill with an increase of what they have paid last year, and it's important to at least send the message that we want the people to survive because everything now is about survival. Last August, 358,000 homes were in foreclosure in the United States. Foreclosures went up in Miami -Dade County by 18 percent in regards to July, while in Broward only 16 percent, so we are in a very difficult situation. So raising taxes, it would be a shot in the head to a person that has been shot in the chest. It's wrong. So I will support this millage because this is what this Commission City ofMiami Page 102 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 intended from day one. And this Commission also intended that the unions had to do something about it, that the different members of this government, whether union or nonunion, they have to take pay cuts and furloughs. And Commissioner Sarnoff was talking about Broward Sheriff Office in Broward, and you know, it's a huge difference. They all in the Sheriff Office -- Sheriff Lamberti offer a -- several things, but Sheriff Lamberti reach out to the union and said, look, you know, I promise you that if you do this, there's not going to be one single officer fired. I promise you that whenever good times come, you will get this. And everything was in writing. So in Broward Sheriffs Office, it was a two-way street, and that's the only way we're going to get something done. You know, we just can't hope that the Manager and the unions will get together because we cannot even be in the same room negotiating, and it's -- we cannot negotiate from here. The only thing we can say is do something about it. So I am in support of this motion because that will give the Manager and the union a concrete tool that they can work around. If we don't do this tonight, we will have the uncertainty of well, the Commissioners may raise a little; well, the Commissioners may do this or they can do that, so this is set, this is done. Let's get it over with. Do it now, and then the Manager has a message that he can bring to the union. And you know, within that message, it's important to, number one, try to capture back the services that we are cutting. It's a -- it would be a sad day for the City ofMiami than to have pools open or NET office open and -- or a cop patrolling the streets of downtown or Flagami. Just today -- this morning a prowler was killed by the owner of a house a few blocks from here on 33rdAvenue and 23rd Street, on District 4, and it's because crime has gone up in that area. Silver Bluff and Shenandoah, it's now a very high crime area. Coral Way -- the Coral Way NET area has more crime than even the Model City area because, you know -- and we don't have one of those PST. We don't have cops to patrol. In my block they have stolen two cars. Two cars in my block in the last two month [sic]. So I just hope that we can hear from the Manager and the unions that they have reached agreement, that we could expect more cuts. I do have ideas, and I still think that, number one, the elected officials should be part of that tier; number two, the pension of the elected officials should be reduced, beginning the fiscal year because we have to lead by example, and other than that, there have been reductions that these Commissioners and the next Commissioners will have to live with it in their budgets and whoever is the next Mayor, butt guess we all have to live with it. My only concern is, Mr. Manager, just the timeline. I keep asking, and I understand that you cannot respond to that, but I agree with Commissioner Gonzalez, it's like time is of the essence because if we don't have a balanced budget on the 24th then probably we can meet on the 25th and then on the 26th and on the 27th and on the 28th, but past the 30th, we cannot meet, and if we don't have a balanced budget, we have to do what we did back in '96 that we have to send a message to the governor of the state of Florida that the City ofMiami does not have a balanced budget, and then face the consequences. We're not going to -- we cannot declare, so everybody knows, an emergency like 1996 because we have money in the reserve and the State is going to say use it. But it will be really embarrassing to get an inspector from the state of Florida to see what we're doing. So I'm ready to vote on the millage. I think it's the right thing to do, the intelligent thing, and the only thing to do tonight. Thank you. Commissioner Sarnoff Commissioner Gonzalez. You're all right? You know, notably absent tonight from this chamber where the taxpayers, probably all very much hard at work frying to pay the salaries, the compensation, the special comps, everything that we get here in City Hall, and they just weren't here. They didn't line up here and say I need some relief I need some help, because they were too busy working to pay us. And for us to slap them in the face and say in a time of whatI think is a bigger crisis than the depression -- because in the depression, you were on the gold standard; your money meant something. It was backed by a certain amount of gold in Washington, D.C., Fort Knox. Today, your money's backed by nothing, by air, by a suggestion, by a promise, by a thought, by an expectation. So in a lot of respects, what you're seeing today is a free fall economy. Will it change shortly? According to the state of Florida, it should be much worse next year; 2010 they're expecting 163 billion, and then 2011, 180 billion. So is the going to get worse? They certainly think it is. How does Florida rank? If you read Kiplinger, Kiplinger will tell you that the third leg of our stool is about to fall, the third leg of our stool happens to be commercial real estate. And here's what Kiplinger says, says City ofMiami Page 103 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 commercial property outlook -- and this is the word they use, and this is a Washington, D.C. think tank -- is woeful; vacancies are rising, rents falling, prices dropping; most buyers can't agree with sellers on terms, few buyers who aren't able to get to buy can't secure the credit to buy. Here's where it closes. No region will be less unscathed by rising vacancies and loan defaults, but California, Florida, Georgia, Arizona, Michigan, Ohio, and Indiana will be the most punished. That's what you can expect to happen, they say, late third -- fourth quarter or first quarter of next year. So anybody has an expectation or thought that things are going to get better in the market, Kiplinger doesn't think so. And how accurate are they? Well, they're about 92 percent accurate, so I would certainly bet on that. So if we don't make organic changes now, if we don't change the structure to the City ofMiami now, you're right, the next Mayor, the next Commission -- I'll be sitting here with Gonzalez -- we'll be looking at each other and we'll be saying to each other, there's no room here. There's no room to do anything. Private sector has to react to the financial realities that it's set with. Most people I know are making 30 to 35 percent less than they were a year ago, and those that are working. Chair Sanchez: Those are the lucky ones. Commissioner Sarnoff That's right. Quite a few law firms, quite a few law firms' staffs have been let go. It is across-the-board, and probably likely to get much, much worse. So how can you ask the taxpayers, the people that actually are the locomotive -- you're the caboose. You know, government is the caboose; it doesn't pull anything. Government gets pulled along by the taxpayers. And you know what you did for the past couple of years? You loaded yourself up with a lot of rocks, and the taxpayers are tired, and they can't pull the same train for as long as they could as well as they could. So to even suggest that they should come up with a higher mill rate is really thoughtless of anyone and really callous of most. You know, I had so much I wanted to say tonight and so much that should be said, and I just can't fathom the idea that we can't be the Broward County Sheriffs Office. I can't fathom the idea that Miami --I think one of the most dynamic places to live. I think one of the most interesting places to live, in a city that have just absolutely grown to love from every employee -- you know, you don't love every employee, but you come here and it's a pretty cool place to work. It just really is. And you get out in the community. It's a pretty cool community. We're not as pretty as Beverly Hills. Not yet. Andl can't fathom that we could be Broward County, and that we may be letting 1,400 people go. No, we're not going to let 1,400; we're going to let 360. I just can't think that we're not going to be Broward County Sheriffs Office and no one gets fired, and it's in our power to do that. It's in the realm of our ability to say nobody gets fired. I don't know how it'll come out. I will tell you one thing, though, for the district that pays 75 percent of the taxes for the citizens of Miami, the very simple answer to a higher mill rate is no. It's not right. It's not fair. It's not the thing to do. It's not appropriate. And you want to know what? Commissioner Regalado's right. It's not the way you stimulate an economy by putting further burdens on people. They're burdened enough. You know, I think what we should do is set the mill rate. We should vote on this budget. I got news for you. You want to bring back NET? Go right ahead. Just line up for me the 45 cops you're firing. You want to bring back the Community Relations Board? Just line up the three cops you're firing. Put them up here so I could look at them. You want to bring back anything else you want, just please line up the cops, and tell me from whose district they're coming, and who's going to lose that police officer's patrol. Because the one thing -- the one obligation every Commissioner has up here is to go to bed at night knowing I did the best could to protect the citizens ofMiami. And I can tell you this, since I've been here, more than 200 police officers have been put on the streets, and it absolutely kills me to think we're going to lose police officers. It just rips me that that -- that is where the lines are drawn. The highest duty we have, and the best we come up with is firing cops. And we have Commissioners up here talking about well, ifI bring back NET, just tell me the cop you're firing. Give me the set of cops you're going to fire -- Commissioner Gonzalez: Yep. City ofMiami Page 104 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Sarnoff -- 'cause you know what, numbers are universal. They don't care what color you are, they don't care what creed you are, they don't care what religion you are, they don't care anything about you. It is -- Commissioner Gonzalez: They don't care about -- Commissioner Sarnoff -- a universal language. Commissioner Gonzalez: -- your profession. Commissioner Sarnoff You're right, they don't. They -- numbers are numbers. And the numbers don't like. People may do things with the numbers, but the numbers don't lie. I certainly hope that we pass this mill rate. I suspect we will. I certainly hope that we are the Broward County Sheriffs Office. I certainly hope that we teach the rest of South Florida that this ethnic mix, this crazy mix of people that live in Miami -- and this is a crazy group of people. Let me tell you something, representing you guys is like putting a blender together, but there's a lot of love, and there should be a lot of caring, and if we all just care a little bit about each other, can we all just do with a little bit less so maybe we go over to each other houses a little more for dinner; we go out a little less, then so be it. It's the new normal. I'm not coining that phrase. I hate to say it but 20/20 got it before me. The new normal. What is it -- what are we going to make? Well, we don't know. It's the new normal. Whatever we're able to achieve as a living in 2010 and 2011, don't be looking to what you made in 2007; it's not coming back, it's not going to be here. So let's vote on this. Chair Sanchez: All right. Commissioner Sarnoff I'll call the question. Chair Sanchez: Call the question. Commissioner Sarnoff Madam Clerk. Priscilla A. Thompson (City Clerk): I just want to make sure, we're dealing with BH.2. Commissioner Sarnoff BH.1, isn't it? Ms. Thompson: BH.2, which is the first reading ordinance, and the -- Commissioner Regalado: BH.2-- Commissioner Sarnoff BH.2. Commissioner Regalado: -- is an ordinance. Commissioner Sarnoff Right. Chair Sanchez: BH.2 -- Commissioner Sarnoff So Madam City Attorney. Chair Sanchez: -- is an ordinance. Ms. Thompson: But before you do that, Commissioner, your motion set up 7.674, but you didn't mention the debt service -- I'm sorry. City ofMiami Page 105 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 BH.3 09-00917 Chair Sanchez: I'm sorry, you didn't quite -- I didn't -- Ms. Thompson: The debt service -- Commissioner Sarnoff Debt service. Ms. Thompson: -- is included in your ordinance, but you didn't include that in your motion. Chair Sanchez: Okay, we'll include it in the motion. Commissioner Regalado: You have to include the debt service. Chair Sanchez: All right, Madam Attorney, just read it into the record. What is it, eight point what? Ms. Bru: The proposed debt service millage is 0.6595 mills. Commissioner Sarnoff Right. Commissioner Regalado: Okay. Chair Sanchez: Okay. So that's -- I accept it in the motion. Commissioner Sarnoff So -- Chair Sanchez: Second -- Commissioner Sarnoff Seconder accepts the amendment? Commissioner Regalado: Yes. Commissioner Gonzalez: I'll accept the amendment. Commissioner Sarnoff Okay. Madam City Attorney. The Ordinance was read by title into the public record by the City Attorney. Ms. Bru: And this is the tentative millage rate for both the general operating budget and the debt service, as announced at 7.6740 mills for the general operating budget, and 0.6595 mills for the debt service. Ms. Thompson: Ready for -- Commissioner Gonzalez: Roll call. Ms. Thompson: -- your roll call. Roll call. A roll call was taken, the result of which is stated above. Ms. Thompson: The ordinance has been passed on first reading, 4-0. Chair Sanchez: All right. DISCUSSION ITEM City ofMiami Page 106 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Office of Strategic Planning, Budgeting, and Performance (BH.3) 09-00917a A DRAFT FORM PROPOSED RESOLUTION OF THE MIAMI CITY COMMISSION MAKING APPROPRIATIONS RELATING TO OPERATIONAL AND BUDGETARY REQUIREMENTS FOR FISCAL YEAR ENDING SEPTEMBER 30, 2010. 09-00917 Legislation.pdf 09-00917 Summary Form.pdf 09-00917-Submittal-Draft Form Proposed Resolution 9-08-09.pdf 09-00917-Submittal-Draft Form Proposed Resolution 9-10-09.pdf DISCUSSED Discussion on the item resulted in the resolution below. RESOLUTION A DRAFT FORM PROPOSED RESOLUTION OF THE MIAMI CITY COMMISSION MAKING APPROPRIATIONS RELATING TO OPERATIONAL AND BUDGETARY REQUIREMENTS FOR FISCAL YEAR ENDING SEPTEMBER 30, 2010. Motion by Chair Sanchez, seconded by Commissioner Regalado, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 3 - Commissioner Gonzalez, Sarnoff and Sanchez Noes: 1 - Commissioner Regalado Absent: 1 - Commissioner Spence -Jones R-09-0427 Chair Sanchez: BH.3, I would make a motion to adopt the budget. Commissioner Gonzalez: Second. Commissioner Sarnoff Any discussion on this? All right, let's just -- this is just a reso, right? All right, so we have a resolution. All in favor, please, say "aye." Chair Sanchez: Wait, wait, wait, wait, wait. BH.3 is a discussion, and then we vote on it -- no. It's just a discussion, correct? Julie O. Bru (City Attorney): BH.3 is the resolution adopting the tentative budget, but what I'd like is some clarification as to what the tentative budget is. Is it the handout that the -- Commissioner Sarnoff As presented. Chair Sanchez: As presented for now. We could -- Commissioner Regalado: As presented. Chair Sanchez: -- always -- Commissioner Sarnoff -- Right. Chair Sanchez: -- change the budget, but -- Ms. Bru: Yes, but we have to advertise it, so what will be advertised? Is it going to be the figures that were handed out in the presentation? What is going to be that? City ofMiami Page 107 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Sarnoff How could it be anything --? Chair Sanchez: As presented. Commissioner Sarnoff Yeah. How could it be anything else? Commissioner Gonzalez: As presented by the Administration, right? Commissioner Sarnoff Right. How could it be anything else? Commissioner Gonzalez: Yeah. Commissioner Sarnoff The one that -- Mike, the one that you presented. Michael Boudreaux (Director, Management & Budget): The -- yes, Commissioner. The budget that we presented tonight, general fund budget of 511.4 million -- Commissioner Gonzalez: Right. Mr. Boudreaux: -- and it's what will be advertised if approved tonight. Commissioner Gonzalez: All right. Commissioner Sarnoff All right. So we have a motion, we have a second. All in favor, please say "aye." The Commission (Collectively): Aye. Priscilla A. Thompson (City Clerk): I'm sorry. Again -- and I apologize; just trying to make sure your record is complete. When the meeting agenda and backup was published, there were no figures involved. You received a substitute resolution, so we need to make sure that on your record that you're showing it as a modified resolution because this is what you received today. That was not what -- Commissioner Sarnoff So why don't -- Ms. Thompson: -- was in your record. Commissioner Sarnoff Michael, can you confirm that that's what was handed out? Mr. Boudreaux: Yes, Commissioner. That was what was handed out today. The original package had no figures in it for the budget. This is why we handed out four amendments with the numbers of 511.4 million. Commissioner Sarnoff All right. Chair Sanchez: All right. So the maker of the motion recognize and accepts its modification. Ms. Thompson: Thank you. Commissioner Sarnoff And the seconder accepts? Commissioner Gonzalez: Seconds. Commissioner Sarnoff All right. So let's do it again. All in favor of the maker of the motion's City ofMiami Page 108 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 motion, please say "aye." The Commission (Collectively): Aye. Commissioner Sarnoff And all "no"? Commissioner Regalado: No. Commissioner Sarnoff One "no;" Commissioner Regalado. Ms. Thompson: Thank you. Commissioner Sarnoff Okay. BH.4 09-00918 DISCUSSION ITEM Downtown DISCUSSION OF PROPOSED MILLAGE RATE AND TENTATIVE BUDGET Development FOR THE MIAMI DOWNTOWN DEVELOPMENT AUTHORITY Authority PERCENTAGE DECREASE IN MILLAGE OVER ROLLED BACK RATE RESPONSE: FOURTEEN POINT NINETEEN PERCENT (14.19%) CITY COMMISSION LISTENS AND RESPONDS TO CITIZENS COMMENTS REGARDING THE PROPOSED MILLAGE DECREASE AND EXPLAINS THE REASONS FOR THE DECREASE 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. ADOPT THE TENTATIVE MILLAGE RATE 4. ADOPT THE AMENDED TENTATIVE BUDGET 09-00918 Millage Rate Discussion.pdf DISCUSSED Commissioner Sarnoff BH -- Commissioner Regalado: DDA (Downtown Development Authority). Commissioner Sarnoff DDA, all right. Do we have a motion to approve the DDA's budget? Chair Sanchez: Motion to approve the DDA's budget. Commissioner Gonzalez: Second. Commissioner Regalado: Second. City ofMiami Page 109 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 BH.5 09-00919 Downtown Development Authority Commissioner Sarnoff All right. We have a motion and a second. Any discussion? Alyce Robertson: I have to read something into the record. Chair Sanchez: Yes, you do. Julie O. Bru (City Attorney): Yeah. The procedure for the DDA is the same procedure that we had for the City's. You have to put on the record what the proposed millage rate is. There has to be a -- the item has to be discussed, open to the public, and then you can vote on the tentative millage and the tentative budget. Commissioner Sarnoff All right, we have a motion and a second. Let's open it up to a public hearing. Anyone wishing to be heard, please come before the Commission now. Ms. Robertson: I have to read my statement. Commissioner Sarnoff Hearing none, seeing none, I'll let the DDA make their presentation. Ms. Robertson: This is a discussion of the proposed millage rate and tentative budget for the Miami Downtown Development Authority. The -- under discussion is setting the millage at point five. The percentage decrease in the millage over the rollback rate is 14.19 percent, and just for the record, by the way, we can't go to the rollback rate because it's above the point five millage. The City Commission listened and respond to citizens' comments regarding the proposed millage decrease and explained the reasons for the decrease over the rollback rate. And the actions by the City Commission that can be taken is amend the budget, if necessary, recompute the proposed millage rate, if necessary, adopt a tentative millage rate, and adopt the amended tentative budget. I don't think I gave my name for the record. It's Alyce Robertson, executive director of the DDA. Chair Sanchez: Okay. ORDINANCE First Reading AN ORDINANCE OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), RELATED TO TAXATION, DEFINING AND DESIGNATING THE TERRITORIAL LIMITS OF THE DOWNTOWN DEVELOPMENT DISTRICT OF THE CITY OF MIAMI, FLORIDA; FIXING THE MILLAGE AND LEVYING TAXES IN SAID DOWNTOWN DEVELOPMENT DISTRICT FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30, 2010, 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 SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. City ofMiami Page 110 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 09-00919 Legislation.FR/SRpdf 09-00919 Exhibit.pdf 09-00919 Cover Memo.pdf 09-00919 Pre -Legislation 1.pdf 09-00919 Board Resolution.pdf Motion by Chair Sanchez, seconded by Commissioner Regalado, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Sarnoff, Sanchez and Regalado Absent: 1 - Commissioner Spence -Jones Chair Sanchez: Roll -- Commissioner Gonzalez: Is that an ordinance? Chair Sanchez: Call the question. Commissioner Gonzalez: Is that an ordinance or --? Commissioner Sarnoff It's a reso, I think. Isn't it? Chair Sanchez: It's a reso. Commissioner Regalado: No. It's an ordinance. Alyce Robertson: It's an ordinance. Commissioner Sarnoff It's an ordinance. Chair Sanchez: All right, read the ordinance into the record -- Commissioner Regalado: I got a question. Chair Sanchez: -- followed by a roll call. Commissioner Regalado: Mr. Chairman. Commissioner Sarnoff Go ahead, Commissioner Regalado. You're recognized. Commissioner Regalado: Madam Executive Director, you have witnessed everything that went on here at -- today, and it's one -- I know that one of your concerns is safety in downtown Miami, so do you have any ideas -- you have brought very fresh and new ideas to the DDA, so you don't - - do you have any ideas how to help the City out in terms of public safety in the downtown area through the DDA? Ms. Robertson: Well, that's a very tough question because I think that one of the things -- I think all of the discussion that has been held here tonight regarding the cost of providing city services is a fairly expensive proposition to do so. What we have done at the DDA to increase visibility of - - we've hired a service that we call "ambassadors" that are not necessarily carrying weapons or anything like that, but they also are -- they're kind of uniform and there's a quasi appearance of somebody else there, and an increased presence without having the expense of going through a police officer. Obviously, that doesn't solve the problem when there's actual crime going on, but I think it does help. We've used them in the Performing Arts Center area to help walk people to cars, to help the visible presence on the street. So that has been a successful program, and we've expanded it over the last year, and we're looking at a further expansion to help with some of the safety issue in the Performing Arts Center. That doesn't close the gap at all. I think that some of City ofMiami Page 111 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 the suggestions here tonight to sit down with the unions, I think, is a very important part of this budget in putting it back together. And I'll say as an aside, I am a City taxpayer, and you know, certainly, the crime issue is one of the most important things to residents in the City, and it's a very -- your dilemma -- I don't envy your dilemma at all. Commissioner Regalado: Thank you. Chair Sanchez: All right. Commissioner Regalado: Thank you, Mr. Chair. Commissioner Gonzalez: All right. Chair Sanchez: All right. Read the ordinance into the record, followed by a roll call. Veronica Xiques (Assistant City Attorney): Actually, a resolution. The Resolution was read by title into the public record by Assistant City Attorney Veronica Xiques. Chair Sanchez: All right. For the point of clarification, BH.5 on my agenda is an ordinance on first reading. Priscilla A. Thompson (City Clerk): And in the packet that was distributed, the backup is a resolution. Chair Sanchez: Okay, so just for the point of clarification, so it is a resolution. Okay. All in favor, say "aye." Commissioner Sarnoff Oh, all in favor, say "aye." The Commission (Collectively): Aye. Chair Sanchez: All right, now I got the gavel back. All right, so -- Ms. Thompson: I'm sorry. Chair Sanchez: I know. Commissioner Regalado: There is an ordinance. Chair Sanchez: Is it an ordinance? Ms. Thompson: That's what I'm -- I thought that's what you said, but you just said resolution. Commissioner Regalado: It's an ordinance. Chair Sanchez: Well, in my -- Commissioner Sarnoff But it's not; it's a reso. It's right here in a -- Chair Sanchez: No. Commissioner Sarnoff It's right here as a reso. City ofMiami Page 112 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 BH.6 09-00920 Downtown Development Authority Chair Sanchez: I have it as an ordinance. Commissioner Regalado: Ordinance, first reading. Commissioner Sarnoff I got you, butl -- look what it says right here. Chair Sanchez: All right. Well, listen, there's a mistake. Listen, let's carry -- I know it's an ordinance. It's not a resolution; it's an ordinance on first reading. It requires two readings, so you need to -- BH.5 is not a resolution; it is an ordinance on first reading, so Madam Attorney, there's been a motion and a second. Ms. Thompson: IfI can get the mover and the seconder, please, on that ordinance? Chair Sanchez: All right, listen, we need to clarify this. We made a motion and a second. I made the motion based on an ordinance, okay. There was some confusion as to it being a resolution. It is not a resolution. Ms. Xiques: You're correct. Chair Sanchez: It is an ordinance. Ms. Xiques: Mr. Chairman, you're correct. Commissioner Gonzalez: And the City Attorney read the ordinance. Chair Sanchez: Okay. Ms. Xiques: So this is actually an ordinance of the Miami City Commission. The Ordinance was read by title into the public record by Assistant City Attorney Veronica Xiques. Ms. Thompson: On your roll call. A roll call was taken, the result of which is stated above. Ms. Thompson: The ordinance has been passed on first reading, 4-0. DISCUSSION ITEM A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), MAKING APPROPRIATIONS FROM THE DOWNTOWN DEVELOPMENT 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, 2009 AND ENDING SEPTEMBER 30, 2010; 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, 2009 AND ENDING SEPTEMBER 30, 2010 FOR THE OPERATIONS OF THE CITY. City ofMiami Page 113 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 09-00920 Legislation.pdf 09-00920 Cover Memo.pdf 09-00920 Board Resolution.pdf 09-00920 Certification Taxable .pdf 09-00920 Millage Levy Calculation.pdf DISCUSSED Discussion on the item resulted in the resolution below. (BH.6) 09-00920a RESOLUTION A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), MAKING APPROPRIATIONS FROM THE DOWNTOWN DEVELOPMENT 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, 2009 AND ENDING SEPTEMBER 30, 2010; 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, 2009 AND ENDING SEPTEMBER 30, 2010 FOR THE OPERATIONS OF THE CITY. Motion by Commissioner Sarnoff, seconded by Commissioner Gonzalez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner Gonzalez, Sarnoff, Sanchez and Regalado Absent: 1 - Commissioner Spence -Jones R-09-0426 Chair Sanchez: All right. Now we go to BH. 6, which is a discussion item, and it pertains to the Downtown Development Authority. And the discussion item is based on the 9.3 million in revenues. You're recognized for the record. Alvin West: Thank you, Mr. Chairman. Again, my name is Alvin West, and I'm treasurer of the DDA (Downtown Development Authority). And I come to you today to ask for your approval of the budget for fiscal year 2009/'10. I would like to speak to you first as a member of the board and the things that we have dun and tried to accomplish over the past years, especially the last year and a half. We've changed the board configuration significantly. We have become very conscience of the return on investment, and we have heard from the stakeholders and from you, the Commission, relative to putting dollars on the street. So to that end, since January 2008, we have reduced just the salary budget alone, or the personnel budget, I should say, we have reduced that budget $329, 000. That is since January 2008. We had a budget -- an advertised budget, actual budget of $1, 919, 000. That budget, if we look at the budget that we're asking you to approve for next year, it is down to $1, 684, 000. That is a 12 percent decrease from that advertised budget in '08. I would also say to you that we have added back, and we are assuming the full cost of the administrative personnel that was a loan to the DDA by the City, so the full cost of that personnel is included in the budget for next year. The other thing that we have done relative to personnel costs is we heard your message relative to the tiered cuts. Personnel that was making over $100, 000, their salaries have been cut 5 and 6 percent. We had negotiated Healthcare contracts so that the personnel is picking up more of the -- their premiums. So all in all -- and we -- I think the message that we have been giving our staff is the message that I heard here earlier. We should all be thankful that we have jobs, and I think that the people at the DDA City ofMiami Page 114 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 are motivated because we are thankful that we have jobs, but we also understand that it is very important for us to continue to do the work of the DDA so that we can again focus on the things that matters and our mission to bring jobs to the City to increase the tax revenue. Those are things that are -- that matters and things that the board cares about. I think all of you know that the board is made up of primarily businessmen -- business people from downtown, and they are very interested in ROI, return on investment, and I am proud to be part of that team, and I think the staff that we have put in place over the last year has done an enormous job in turning this organization around, working with the board, collaborating with the City, collaborating with the County, collaborating with the other entities throughout the City ofMiami. So we're leveraging the dollars that you have presented and been so kind to work with us to get, and we have reduced the expenses. So we ask that you approve this budget tonight. Thank you. Chair Sanchez: Thank you. All right, we have -- we need a motion and a second. Commissioner Sarnoff So moved. Commissioner Gonzalez: Second. Chair Sanchez: There's a motion by Commissioner Sarnoff, second by Commissioner Gonzalez. Let me just take this opportunity as the chair of the Downtown Development Authority, I want to take the opportunity to praise the executive director, the entire staff and the board. I take great pride in working with people who have worked with me to turn that DDA over with not only new ideas focusing on what -- things that make the difference, but also the transition of the board and the commitment of the board. I mean, I take great pride in saying that I am the chair of Downtown Development Authority, and you have definitely made the Downtown Development Authority a better place through your dedication and commitment. I mean that from the bottom of my heart. No, you can't clap now. All right, so it is a -- it's a discussion item. We don't need to -- yeah, it's a discussion; we don't need to vote on it. We need to vote on -- there is no vote on that item. Now we move to BH.8, which is a resolution. Veronica Xiques (Assistant City Attorney): Excuse me. Mr. Chairman, just as you adopted a tentative budget for the City ofMiami, you must adopt a tentative budget for the DDA, so what you did now was you discussed it, so we would need to pass a resolution -- Chair Sanchez: All right. There's a motion already proffered and a second. No further discussion. All in favor, say "aye." The Commission (Collectively): Aye. Chair Sanchez: Anyone in opposition, having the same right, say "nay." Do we need to open it up for the public? Ms. Xiques: No. Chair Sanchez: Okay. BH.7 09-00921 DISCUSSION ITEM BayfrontPark A DISCUSSION OF THE MIAMI CITY COMMISSION Management Trust REGARDING A 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 $3,816,000, TO PROVIDE FOR THE OPERATIONS, MAINTENANCE AND CAPITAL IMPROVEMENTS OF MILDRED AND CLAUDE PEPPER BAYFRONT PARK, FOR THE FISCAL City ofMiami Page 115 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 YEAR COMMENCING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30, 2010. 09-00921 Legislation.pdf 09-00921 Exhibit.pdf 09-00921 Cover Memo.pdf DISCUSSED Chair Sanchez: Then we move on to BH.8. Madam Clerk. Priscilla A. Thompson (City Clerk): BH.7. Chair Sanchez: BH.7. All right, BH.7 is the Bayfront Park Management Trust. This should be very simple. Timothy Schmand: Tim Schmand, Bayfront Park Management Trust, 301 North Biscayne Boulevard, Miami, Florida. Chair Sanchez: Need a motion. Commissioner Gonzalez: Move it. Chair Sanchez: There's a motion by Gonzalez, second by Commissioner Sarnoff. Once again -- Mr. Schmand: This is the most confusing day in my life every year. This is merely a discussion item, and we chat about the budget, and then I come back -- 'cause you can't approve my budget until you've approved your budget. Chair Sanchez: Yeah. Mr. Schmand: So this is a discussion item, and I have a list of talking points that I'll skip -- Chair Sanchez: We'll get you later. Mr. Schmand: -- but if the -- if my board of directors says -- asks you how was the presentation, tell them I knocked your socks off. Chair Sanchez: Excellent presentation, Tim. Commissioner Sarnoff Great. Mr. Schmand: Thank you very much, Commissioners. Chair Sanchez: Thank you so much. Commissioner Sarnoff Tell them you brought back -- Chair Sanchez: All right, so we don't -- Commissioner Sarnoff -- a goose -- Mr. Schmand: I appreciate your support. Commissioner Sarnoff -- egg, though. Commissioner Gonzalez: And let me tell you, we really appreciate that you skip your points. City ofMiami Page 116 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 BH.8 09-00922 Miami Sports & Exhibition Authority Commissioner Sarnoff Exactly. Chair Sanchez: 'Cause we got to finish this by 12, or else we're going to have to take another recess. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE MIAMI SPORTS AND EXHIBITION AUTHORITY ("MSEA"), ATTACHED AND INCORPORATED, IN THE AMOUNT OF $112,000, TO PROVIDE FOR THE OPERATIONS AND MAINTENANCE OF MSEA, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2009, AND ENDING SEPTEMBER 30, 2010. 09-00922 Legislation.pdf 09-00922 Exhibit.pdf 09-00922 Cover Memo.pdf Motion by Commissioner Sarnoff, 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 R-09-0425 Chair Sanchez: All right, BH.8. That's the MSEA (Miami Sports & Exhibition Authority). We need to approve the MSEA budget on BH.8. Need a motion. Commissioner Gonzalez: Move it. Commissioner Sarnoff So moved. Second. Commissioner Regalado: Second. Chair Sanchez: There's a motion and a second. Any discussion on MSEA. Hearing no discussion, it's a resolution. All in favor, say "aye." The Commission (Collectively): Aye. Chair Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. And now we get to the grand finale. Timothy Schmand: Thank you, Commissioners. Commissioner Sarnoff Wait, wait. While Tim's up there, I just want to say one thing about Tim. He it is easiest best director I've ever worked with in the City ofMiami for anything, and Tim, I can't believe we gave you zero dollars, but you came in with a smile, you understood it, you didn't fight, and you -- Schmand: And just so that the Commission is aware of my intention, I have a board meeting on the 22nd where I'm going to present a budget to them that zeros out City support, and I will pass out copies day of show here for you guys and Commissioner Spence Jones so that you can approve that then. Thank you very much. Commissioner Gonzalez: Tim, let me ask you, did some people call you? I asked some people to call you because they want to have a concert. Did they? City ofMiami Page 117 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Mr. Schmand: I put them in touch with Live Nation, and they're talking to Live Nation about it right now. Chair Sanchez: You know why you have Tim over at Bayfront Park? Commissioner Sarnoff Why what? Chair Sanchez: Because I picked him out. Commissioner Sarnoff Why what? Chair Sanchez: You know why Tim's over at Bayfront Park? Because I selected him. Commissioner Sarnoff Well, then, you did a great job. He is -- Chair Sanchez: All right, Tim. BH.9 09-00923 RESOLUTION Department of Solid A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Waste 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, 2009; APPROVING THE RATE OF ASSESSMENT; APPROVING THE ASSESSMENT ROLL; AND PROVIDING FOR AN EFFECTIVE DATE. 09-00923 Legislation.pdf 09-00923 Exhibit 1.pdf 09-00923 Exhibit 2.pdf 09-00923 Summary Form.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Gonzalez, that this matter be ADOPTED FAILED by the following vote. Votes: Ayes: 2 - Commissioner Gonzalez and Sarnoff Noes: 2 - Commissioner Sanchez and Regalado Absent: 1 - Commissioner Spence -Jones Chair Sanchez: All right, listen, let's -- Commissioner Sarnoff I'm ready to go home. Chair Sanchez: -- get to BH.9, which is a resolution, and I think it's going to go down in flames. Mario Soldevilla: Mario Soldevilla, director of Solid Waste. Commissioners, this is a resolution for the final assessment of the solid waste fee. The proposed final assessment is at $415. Commissioner Sarnoff I'm going to move it. Chair Sanchez: All right, there's a motion. Is there a second? Commissioner Gonzalez: I'll second it. Chair Sanchez: All right, there's a second. Any discussion on the item -- City ofMiami Page 118 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Sarnoff Yeah. Let -- could I -- Chair Sanchez: -- BH.9, resolution? Commissioner Sarnoff Mr. Chair. Chair Sanchez: You're recognized. Commissioner Sarnoff Whether this gets voted up or down -- and I suspect in a 2-2 tie -- I just want to be frank and honest with the voters. If we don't -- this is going to cost us $415 a year and maybe even a little more, and especially if you need some new equipment. Even if we go back to the 365 or whatever the last year's number was, let's be clear. That's going into the general fund. Now, from this district Commissioner's perspective, you should actually pay for what you get and get what you pay for 'cause what happens is when it goes back to the general fund, it gets disproportionately paid for by who? District 2. Now that may be okay with some Commissioners, but it's really going to cost you what it's going to cost you, and I just hope for the sense of intellectual honesty, somebody would actually commit to voting for what it really cost 'cause it really is going to cost us this. Commissioner Gonzalez: Exactly. Commissioner Sarnoff And the one thing we're pretty good at in the City ofMiami is picking up garbage. Commissioner Gonzalez: Right. Chair Sanchez: All right. There's a motion and a second. Commissioner Regalado. Commissioner Regalado: Briefly. Problem is that -- and we need to be also honest with the people -- we are fighting for the budget that eventually will cut some of the services of the Solid Waste Department. And how do you explain going up in price and going down in services? And, you know, it's sad. But I just think that the Solid Waste Department should be more creative and that there are many things that they can do, but that's for another day so -- Soldevilla: Commissioner, one -- the reason that it's going to the 415 is that the additional $50 that we're asking -- Commissioner Regalado: I know, it's for a single -stream -- Mr. Soldevilla: -- was for single -stream recycling, which -- Commissioner Regalado: -- recycling. I understand that. Mr. Soldevilla: -- eventually will, in fact, save the City more money. Commissioner Regalado: Yeah. Mr. Soldevilla: We anticipate that by going to a single -stream recycling, we will be able to reduce -- Commissioner Regalado: We heard that. Mr. Soldevilla: -- our disposal costs. Commissioner Regalado: Mario, we heard that. But the point that I'm trying to make to you is City ofMiami Page 119 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 that today, we are sending the message that we are going to cut services. Mr. Soldevilla: I understand. Commissioner Regalado: That's all. Chair Sanchez: All right. Commissioner Gonzalez. Commissioner Gonzalez: Does anybody know how much Hialeah charges for the Solid Waste fee? Mr. Soldevilla: Yes. Pedro G. Hernandez (City Manager): I believe that Hialeah is probably the only one in Dade County that charges less than we do. Mr. Soldevilla: Three twenty-four. Commissioner Gonzalez: How much? Mr. Soldevilla: Three twenty-four is the charge. Commissioner Gonzalez: Three twenty-four. Mr. Hernandez: And by the way, the City of Hialeah does have the monthly trash pick up. Mr. Soldevilla: They have monthly trash pick up. Commissioner Gonzalez: Yeah. Mr. Hernandez: Many, many years ago, they had it weekly and then they switch over. Commissioner Gonzalez: I know that. Mr. Hernandez: But they're the only one that is below us. Commissioner Gonzalez: Yeah, I know that. Mr. Hernandez: AndMr. Chairman, if you'll allow me real quick on this item. I agree with Commissioner Sarnoff that, in essence, in this case the residents will get something in return for the additional monies because the $50 is the cost of the container, and then we'll go from an outdated recycling program with the bins to using what the County has in some areas now, which is the roll container that allows for all the recycling to go in one container, people will recycle more, there'll be less garbage going out to the landfill, it's a savings, and it's the environmental thing to do. It's -- Commissioner Sarnoff And hopefully -- Chair Sanchez: All right. Commissioner Sarnoff -- the green Commissioner is listening to you. Chair Sanchez: Okay. Mr. Hernandez: I mean, it's -- City ofMiami Page 120 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Chair Sanchez: Okay, roll call on the last item of the budget. Priscilla A. Thompson (City Clerk): Roll call on the resolution. Commissioner Regalado? Commissioner Regalado: Well, I'm voting no, butt have to just say to the Manager. The County has this contract, $2.62 a month, and they facilitate the recycling bins, for your information. But I'm voting no. Ms. Thompson: Continuing with the roll call. Commissioner Gonzalez? Commissioner Gonzalez: Yes. Ms. Thompson: Commissioner Sarnoff? Commissioner Sarnoff Yes. Ms. Thompson: Chair Sanchez? Chair Sanchez: No. "[Later...]" Julie O. Bru (City Attorney): Can I -- Mr. Soldevilla: Commissioner -- Ms. Bru: -- say something -- Chair Sanchez: Yes. Ms. Bru: -- before you adjourn, please? Ifyou don't vote on this assessment for the Solid Waste today -- we need to get it out by the 15th if you're going to send it on the tax bill. Ifyou don't vote on this by the 15th and send it in the tax bill, then you'll have to -- if you decide to assess a solid waste fee, you'll have to mail it, and the collections are not as successful, and it'll cost you the money of mailing it. Chair Sanchez: All right. Commissioner Gonzalez: They're ready to sign the notice. ADJOURNMENT A motion was made by Commissioner Gonzalez, seconded by Commissioner Sarnoff, and was passed unanimously, with Vice Chair Spence -Jones absent, to adjourn today's meeting. Chair Sanchez: Move to adjourn. Commissioner Sarnoff It's actually a (UNINTELLIGIBLE) -- Chair Sanchez: Is there a motion to adjourn? Commissioner Regalado: Move it. Chair Sanchez: There's a motion to adjourn. Is there a second? City ofMiami Page 121 Printed on 10/1/2009 City Commission Meeting Minutes September 10, 2009 Commissioner Sarnoff Yes, there is. Second. Chair Sanchez: All right, there's a second. All in favor, say "aye." The Commission (Collectively): Aye. Chair Sanchez: Anyone in opposition, having the same right. The meeting has been adjourned. That concludes our first budget hearing. Thank you and good night. City ofMiami Page 122 Printed on 10/1/2009