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HomeMy WebLinkAboutCC 2010-09-14 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Of • relgtlit .. IYt9H P F 9I#yT$ IRrIIO Meeting Minutes Tuesday, September 14, 2010 5:05 PM FIRST BUDGET HEARING City Hall Commission Chambers City Commission Tomas Regalado, Mayor Marc David Sarnoff, Chairman Frank Carollo, Vice -Chairman Wifredo (Willy) Dort, Commissioner District One Francis Suarez, Commissioner District Four Richard P. Dunn II, Commissioner District Five Carlos A. Migoya, City Manager Julie O. Bru, City Attorney Priscilla A. Thompson, City Clerk City Commission Meeting Minutes September 14, 2010 CONTENTS BH-FIRST BUDGET HEARING TO DISCUSS FISCAL YEAR 2010-2011 TENTATIVE BUDGET BEGINNING AT 5:05 P.M. BH. 1 THROUGH BH. 13 FIRST BUDGET HEARING 5:05 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE Present: Commissioner Gort, Chairman Sarnoff, Vice Chairman Carollo, Commissioner Suarez and Commissioner Dunn II On the 14th day of September 2010, 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 Sarnoff at 5: 35 p.m., recessed at 8: 51 p.m., reconvened at 9: 47 p.m., recessed at 11: 59 p.m., reconvened at 12:18 a.m., and adjourned on Wednesday, September 15th, 2010 at 3:25 a.m. ALSO PRESENT: Julie O. Bru, City Attorney Carlos A. Migoya, City Manager Priscilla A. Thompson, City Clerk Pamela L. Latimore, Assistant City Clerk ORDER OF THE DAY Chair Sarnoff. (INAUDIBLE) Vice Chair, Francis Suarez, W fredo Gort, Reverend Richard P. Dunn, and myself Marc David Sarnoff, the Chairman. Also on the dais are Carlos A. Migoya, the City Manager; Julie O. Bru, the City Attorney; and Priscilla A. Thompson, the City Clerk. We will now begin the first budget meeting. The City Attorney will state the procedures to be followed during this meeting. This is the first budget meeting of the City ofMiami. It is here to fix the proposed millage rate and to adopt a tentative budget. There will be a public hearing for this meeting. Madam City Attorney. Julie O. Bru (City Attorney): Good evening, Mr. Chairman, members of the Commission, Mr. Mayor, members of the public, Manager, City Clerk. The material for the items on this agenda are available during business hours at the City Clerk's office, and they are online at wwwmiamigov. com [sic]. Anyone wishing to appeal any decision made by the City Commission for any matter considered at this meeting to the extent that it's appealable, you might need a verbatim record of the item. No cell phones or other noise -making devices; please silence those now. And anybody who becomes unruly will be barred from further attending the Commission meetings. Any person with a disability that requires auxiliary aids and services for this meeting may notify the City Clerk. Any person making offensive remarks may be barred from attending the Commission meeting. And perhaps the Chairman would like to announce any specific provisions for addressing the Commission, maybe signing up with the Clerk or, you know. Chair Sarnoff. What I will do is for the public hearing, I'll ask everybody to line up on both sides of the dais. Do not wait for a person to stand clear, so I'd like to see a line behind you. Each person will get two minutes. I will stick to the two minutes. If you have a question -- I don't usually do this -- please -- but please go through the Chair. I'll then ask the question to the City Manager, and he will answer the question based on -- he thinks is the best person that he deems to answer your question. Everybody understand the procedures? Good. City ofMiami Page 2 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Priscilla A. Thompson (City Clerk): Chair. Chair Sarnofff. All right. Yes, ma'am. Ms. Thompson: IffI might. Can we please ask everyone to turn off their cell phones, put them on vibrate. The other thing we need to remind everyone of is that they must state their name and address on the record, unless they're law enforcement, firefighters, and you fall under the confidentiality law. Thank you. Chair Sarnofff. Thank you. All right, raise your hand. Who has a cell phone? Commissioner Dunn: Everybody. Chair Sarnofff. Half of you are lying. See that right away. Everybody have their cell phone on beep -- vibrate, I mean? All right, so we're not going to hear any cell phones, right? 'Cause here's the rule: If your cell phone goes off you put it right up here, and you can get it back for $20. It goes to a charity. City of Miami Page 3 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 BH.1 10-00932 Office of Strategic Planning, Budgeting, and Performance DISCUSSION ITEM FIRST PUBLIC HEARING TO DISCUSS THE PROPOSED MILLAGE AND TENTATIVE BUDGET FOR FISCAL YEAR 2010-2011. THE PROPOSED GENERAL OPERATING MILLAGE RATE OF 7.6740 FOR THE CITY OF MIAMI FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011 IS 11.95% LOWER THAN ROLLED -BACK RATE OF 8.7154. 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 10-00932 Millage and Tentative Budget Discussion.pdf 1000932-Submittal-Correspondence-Budget 2011 Estimating Conference Recommendation.pdf 10-00932-Submittal-Fiscal Year 2011 Budget Presentation. pdf 10-00932-Submittal-FY 2011 Proposed Budget. pdf 10-00932-Submittal-Petitions. pdf 10-00932-Submittal-Eileen Bottari.pdf 10-00932 Millage and Final Budget 9-27-10.pdf DISCUSSED Chair Sarnoff. All right, Mr. Manager, we are ready. BH.1. Carlos A. Migoya (City Manager): We need to start off with -- ifI may ask the Mayor to come up and -- Chair Sarnoff. Mr. Mayor -- Mr. Migoya: -- address you. Chair Sarnoff. -- you are recognized for the record. Mayor Tomas Regalado: Good afternoon, Commissioners. Chair Sarnoff. Good afternoon, Mr. Mayor. Commissioner Dunn: Good afternoon. Mayor Regalado: I stand before you to present a no -tax -increase balance budget for the City of Miami fiscal year 2010/2011. To say no -tax -increase balance budget is easy, but the work it took to make it possible was very difficult and painful. First and foremost, I'd like to thank you all, Commissioners. Most of you, like me, have spent many month [sic] in hard campaigns. And on City of Miami Page 4 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 the first day of the job, you face great challenges. History will say that no Commission face what you found: one of the worst economic recessions in US (United States) history, a local economy destroyed, the highest unemployment rate in many, many years in the City ofMiami, the collapse of revenues in the City ofMiami, along with a huge deficit that we carry over from this year, and a system that was broken. However, instead of saying 1' did not create this problem,'j'ou accepted these challenges. The people ofMiami should know that you work time and a half for them and that you left jobs and family for month [sic] to do the people's work. For many, many hours, many days you listened to us and the Administration, but we also listen to you. The budget is part of that conversation. In all my years as a public servant and a City ofMiami resident for 50 years, I can say that this is the first time that I see a true partnership between the City Commission and the Administration. And for that, I thank you, Commissioners. I would like also to thank City Manager Carlos Migoya. When I was elected, I asked for his help, and he gave it. When I asked for more, he put his corporate work aside and work night and day for his City, the City where he lives. To the City employees and the City unions, I say let's continue to be partners instead of adversaries; partners as we always have been in good and in bad time. I was sitting right there. I still remember the City Commission meeting of July 24, 1997 when the City Commission was forced to approve the plan for the dissolution of the City ofMiami. You were here. I was here. This was because a group called Citizens ofMiami for Lower Taxes forced a referendum that was held on September 4, 1997 to abolish the City, which would have become unincorporated then -Metro -Dade County. In that plan, had the referendum passed, it stated that effective September 30, 1998, all municipal service provided by the City ofMiami shall cease. It also stated that it was solely the decision of Metro -Dade County whether to transfer, hire, or otherwise retain City employees for those functions transferred to the County. I remember; I was here for that election. The elected officials and the unions went out and campaign to keep the City ofMiami alive. We won by 85 percent of the vote. After that, the City ofMiami came back. And when things were better, we took care of the employees. Today we could face dissolution not by a vote, but by the economic reality of these times in which we live. But this time will pass because the United States always comes back. And in good time, we will (UNINTET,TIGIBT,F) 54428 again take care of the employees as we always have in the past. In this budget year, we face a deficit of $105 million, and the City ofMiami residents face a 13 percent unemployment rate, one of the largest in the last 25 years. The City ofMiami also is facing the largest foreclosure rate in the state of Florida, except one city up north. This is not about the residents not wanting to pay more taxes. It's that the residents can't pay anymore taxes. So we did what every industry and every business in Miami and the US has done, reduced expenses. We could have balanced the budget by laying off hundreds of employees. There would have been a big headline in tomorrow's paper, but it would have devastated hundreds of families forever around the City ofMiami and in the City ofMiami. It is difficult, I know from my own experience, but this is a sign of the time where we live in. With the cuts by reducing $30 million in operational expenses, by thinking outside the box and by creating new sources of revenue, such as contracting with other cities in the Virginia Key solid waste facility, we have been able to achieve a balanced budget. This budget keeps jobs. This budget keeps service and sends a message to the residents. The message to the residents is you don't have to leave Miami as you did back in the late '90s. This message also opens the door for new investments that will bring new jobs in the City ofMiami. It is a difficult budget, but these are difficult times. With that, Commissioners, I ask you to consider the City ofMiami 2010/2011 budget. Thank you. Chair Sarnoff Thank you, Mr. Mayor. Mr. Manager. Mr. Migoya: I'd like to have our budget director, Mirtha Dziedzic, present to you the budget presentation from the Administration side. Chair Sarnoff You're recognized for the, Mirtha. Mirtha Dziedzic (Interim Director, Strategic Planning, Budgeting, and Performance): Good afternoon. First, we'd like to read into the record the requirements for the trim compliance. The City ofMiami Page 5 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 first public hearing to discuss the proposed millage and tentative budget for fiscal year 2010/2011. The proposed general operation millage of 7.674 for the City of Miami for the fiscal year beginning October 1, 2010 and ending September 30, 2011 is 1.0414 mills or 11.9 percent lower than the rollback rate of 8.7154. The City Commission listens and responds to citizens' comments regarding the proposed millage rate. The actions by the City Commission are as follows: Amend the tentative budget, if necessary; recompute the proposed millage rate, if necessary; adopt a tentative millage rate; adopt the tentative budget or amend tentative budget as necessary. That's BH.1. Chair Sarnoff All right. You want -- Ms. Dziedzic: The next item is BH.2, which is the millage rate ordinance. Chair Sarnoff -- to read that one in? You want to take these one at a time or do you -- or can you take them all three as public hearings? Julie O. Bru (City Attorney): You can take public input as to the -- all three of them and then -- Chair Sarnoff Okay. Ms. Bru: -- vote on them individually. Ms. Dziedzic: So I'll go forward with the presentation. Chair Sarnoff Okay. Ms. Dziedzic: Commissioners, the budget preparation process for fiscal year 2011 has been a particularly difficult one due to the current state of the local, regional, and worldwide economies. We have experienced unprecedented reductions for the second straight year to property taxable values and sustained double-digit employment rates. Based on these factors and the commitment to not increase taxes, we present to you the fiscal 2011 budget. Even with the challenges of a stagnant economic market that has yet to recover from the bust of the construction boom, a second year of unprecedented double-digit reduction in ad valorem taxable values, rising health care costs, sustained growth and pension funding requirements, the budget before you is structurally balanced, maintains the millage rate of the current year's level, and sustains overall service levels, and reinstitutes funding for capital needs. The certified preliminary tax base figures indicate that the total taxable base has contracted by $5.6 billion, or 15.29 percent, giving us a total taxable value of $31.4 billion. Six hundred and thirty-one million of new construction offsets this decrease in property values where without new construction, the total existing property depreciation would have totaled $6.3 billion. The tax base decrease translates to ad valorem tax revenues of $223.5 million. This assumes a millage rate of 7.6740, which is equal to the current fiscal year millage rate and an 11.95 decrease from the rollback rate of 8.7154. This translates to a decrease in total potential tax revenue of $29.1 million based from the rollback rate. The graph before you demonstrates how the operating millage, which is the purple line, has changed since 1998. It also identifies the sharp sustained growth from fiscal year 2002 to fiscal year 2009 in taxable value and the dramatic reductions to the City's taxable value, which is the blue line, in the past two years. The total recommended revenue appropriations for fiscal year 2011 is $500 million. This is an increase of approximately $2.4 million, or .5 percent, over the FY-2010 projected year-end actuals. This increase is attributable to the revenue enhancements listed on the financial strategies which offset the overall reduction from the current fiscal year of $27.8 million, of which property taxes make up $21.8 million. Other reductions include 1.4 million from interest income and $2.2 million of one-time settlements collected in the current fiscal year. The revenue enhancements, totaling $30.2 million, include CRA (Community Redevelopment Agency) reimbursements -- potential CRA reimbursements of $10.4 million; increases to fines and forfeits of $10.1 million, which City of Miami Page 6 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 include revenue from the red-light cameras, vehicle impoundment program, and commercial vehicle violations; increases to licenses and permits of $3.8 million, which include increases to the solid waste private hauler gross receipts from 22 to 24 percent, the mural dollars, and the changes to the building revenues. Charges for services are also estimated to increase approximately $5.8 million. Total recommended expenditures appropriations for fiscal year 2011 is $500 million. This is a decrease of approximately $19.6 million, or 4 percent, from the current projected year-end actuals. The reductions are comprised of 82.9 million in expenditure cost reductions, with 8.1 million added back for capital needs not funded in fiscal year '10. These reductions offset the actuarially determined scheduled increases to the pension plans, as well as the anticipated increase to the group health plans and citywide legal costs. Additionally, the City is allocating $10 million for anticipated one-time payouts, as well as for uncollectable revenues at approximately $12 million. The $82.9 million in cost reductions are comprised of 26.7 million in salary reductions, 43.3 million in pension reduction, 6.9 million in health care reductions, $5 million of attrition, and a $1 million savings from people exercising the right to retire in the Rule of 64. In conclusion, I want to reemphasize that this budget proposal addresses the City's fiscal constraints and priorities. We continue to focus our attention on improving business processes to reduce redundancies and increase efficiencies. That's the end of the presentation. Any questions? Chair Sarnoff. Any questions? All right. Mr. Manager, you want to take a public hearing on BH.1, or do you want to --? I suggest you do that 'cause everything appears to be ordinances mixed up with discussions. Mr. Migoya: I think this is probably the appropriate time to take a public hearing. Chair Sarnoff. Public hearing? All right, anyone from the public wishing to be heard on BH. 1, which is the mill rate and the proposed City budget, as you've just seen how we're fiscally attempting to solve $105 million gap, please step up. I ask you to use both podiums. You each will be limited to two minutes. And you are recognized for the record, sir. Don Deresz: Thank you for an opportunity to comment on proposed budget regarding four issues in two minutes. Don Deresz, 1852 Southwest 24th Street. As I stood here at a budget hearing back in 2007 as a member of the Silver Bluff Homeowners Association, when the City's employees retirement program was taking shape of an ugly ulcer face monster. I urged the Commissioners to move the City's retirement program to the Florida Retirement System, whose monthly retirement distributions, deferred retirement option programs don't cost the state or municipal taxpayers one dime as these funds are income from (managed investments. Now we City's taxpayers must feed the City's retirement fiasco for the pension cost and continued mismanagement, increasing to the tune of $1.2 billion in three years. Again, I urge you to convert the City's pension plan to the Florida Retirement System and save yourselves a lot of wasted time and trouble in City's funds. Second issue, there have been a noticeable increase in the amount of billboards throughout the City; many have not posted the required controlled permit number. Are they illegal? Are fines being collected? Which City department is responsible to monitor the billboards? Have these permit fees increased for these outdoor advertisers to increase our City revenues? Certainly, fees should be about four or five times more for the digital LCD (Liquid Crystal Display) billboards that generate a lot more money because they advertise products for multiple companies. We need this additional money for these outdoor billboards and murals to support our community and to help balance our budget. Third, there is a need to begin a responsible safe driving program by our police and City personnel. Driving a police car does not give one the right to speed excessively to get to and from work along our expressways and drive recklessly along our streets. I've had two encounters within a year, a police officer almost causing an accident because they drive recklessly. Two officers that were in a marked car and were late to a training session, as they left the Coral Way McDonalds, made an illegal U-turn, almost killing themselves ifI had not practiced defensive driving. I suggest that the Police Department initiate a training program called We Drive Safely,'and that City of Miami Page 7 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 police officers become role models of intelligent driving by using their turn signals, stopping for pedestrians when turning, not speeding on expressways, and being considerate of other drivers in our community. A We Drive Safely'feminder should be displayed on every City ofMiami police vehicle -- Chair Sarnoff In conclusion. Mr. Deresz: -- below the vehicle number. Chair Sarnoff In conclusion. Mr. Deresz: One more item. I'd like to also add -- Chair Sarnoff In conclusion. Mr. Deresz: -- that before the City spends any money on the red-light cameras, check out the judicial -- Chair Sarnoff Sir, I want to thank you. Mr. Deresz: -- problem because you have to prove that -- Note for the Record: Chairman turned off microphone; therefore, speaker's comments were not transcribed. Chair Sarnoff Yes, ma'am. Mr. Deresz: Thank you. Chair Sarnoff You're now recognized for the record. Dolly Maclntyre: My name is Dolly Maclntyre, 409 Vizcaya Avenue, in Coral Gables. I'm really sorry that I'm here today to plead for the preservation of a small amount of funding for the Gusman. I'm also sorry that everyone in this room is here to plead for the preservation of their funding. I don't envy you; the process of trying to decide who eats and who goes hungry. But I would ask that on October 1, you all andl and everyone in this room put our good heads together and find a way to solve the problems so we don't ever go through this again. Thank you. Chair Sarnoff Thank you. Yes, sir, you're recognized for the record. Armando Aguilar: Armando Aguilar, president ofMiami Fraternal Order of Police, 710 Southwest 12 Avenue. Applause. Mr. Aguilar: I think last week when I spoke, I made it abundantly clear how upset I am of what you're doing to all the City ofMiami police officers and all the City ofMiami employees, so today I'm just going to stand here and give you a little bit of advice. I saw how hard it was for you to pass a minor fee increase -- and by that you even passed it 3-2 -- and how easily you passed it 5-0 when it came to taking away our pay and our benefits; you didn't blink an eye. And I understand that's really hard for you because these are the people that fill your campaign treasure chests. When I look at your campaign accounts, it's all special interest groups; it's all attorneys, consultants, developers. There are millions and millions of dollars in uncollected fees out there. Your own person told you here today that we should have been hiking these fees ten or City ofMiami Page 8 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 fifteen years ago. A lot was said about the Oversight Board that was here in '97, andl think it's time you all dust off some of those instructions that they left behind and realize that these fees have to be implemented, they have to be collected. It's very easy to just blame it on the employees 'cause we don't contribute to your campaigns as much as all these other people do, but it's very easy when you hit the little guy as opposed to the people that fill your pockets. I got to tell you, I'm going to continue to push for the Oversight Board. I don't think you people are doing it the right way. I will continue to negotiate with the City in hopes that somehow we can amend this budget and at least take a little bit of alleviation from our members. But if this continues on the road that it's going, we're going to be bankrupt all over again. It can't always be the employees' fault. You got to put the blame on somebody else. Thank you. Applause. Chair Sarnofff. You're recognized for the record. Albio Castillo: My name is Albio Castillo. I live in 2345 Southwest 16 Street, Apartment 3. I'd like to know the following areas. I'd like to know is if the City of Miami's going to do with the fire station number 14 and fire station number 10; that you've not been able to fix station number 10's roof and when are you going to build the station 14 in Shenandoah? I -- your Fire chief on August, they did a good piece on the minority hiring of employees for the Fire Department, which was very good. We finally get something out of the City. I also like to know -- in the police area, I also like to know is if the City ofMiami's going to buy M16s because the police is undermanned in the crime areas. The only thing they have is a shotgun, a .45 and a .40. I know where you could get that money if they really want to get it. I also like to know is if the City going to continue with the motor pool with the police cars that are broken to use the spare parts. Code enforcement in the downtown area, I'd like to know is if the Code Enforcement for the Omega, is it going to be in the billboard? Is that going to be stayed, or are we going to have like we always have, the changes, and changes, and changes. Is that going to be stayed if another developer wants to do an Omega project? And I'd also like to know is if the City, how many foreclosures apartment and the revenue of those that are being filled? I'd also like to know is what -- we had $150 million in capital bond in 2001. In 2008 and in 2009, we had a hundred million. Where did those hundred million go? That is it. Chair Sarnofff. Thank you. Mr. Castillo: Any question from the Administration? Any question from the Commissioners? Chair Sarnofff. I don't hear any. Mr. Castillo: Okay. Chair Sarnofff. Thank you, Albert. Mr. Castillo: You're welcome. Chair Sarnofff. Mister, you're recognized for the record. Jose Gonzalez: Oh, my goodness. My name is Jose Gonzalez. I live at 1118 Southwest 10th Street, Miami. I've been a resident of the City ofMiami for about 50 years. I just want to remind you guys that you receive a mandate, even though you are not businessmens [sic], I recommend to you to get an idea on the private business side so you can make really good decision for the citizens ofMiami. There are two reasons why that I see, and I am a very simple person. There are some -- not so many private persons in here because (UNINTELLIGIBLE) and economics. Economics because they have to worry about paying their taxes, so a lot of people in here get -- receive excess salaries and excess retirement, retirement that does not exist on the private City ofMiami Page 9 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 industry because they will go bankrupt. And this country, sir, is not maintained by the unions or public employees. It's maintained by the small business. Follow the directions. We have a Fire Department full of excesses. The other day I saw the command center that they bought, a truck that is about half a block in length. They spend more time, you know, parking that sucker than instead fighting a fire. I remember the fire at the Miami Arena, that they couldn't do a thing about it and -- but the next day they came out on TV (Television) to explain the difficulties of the scaffolds and the ladders that they have to -- it's a challenge in order to put down the fire, which they did not. Good solution: Put them to work two month a year on a construction site at a salary of -- and condition of our construction workers. In that way, they will learn. I have personal experience -- finish? Chair Sarnofff. Okay. Your minutes -- you need -- in conclusion. Mr. Gonzalez: I was talk -- I going to talk about my personal experience, but -- Chair Sarnofff. In conclusion. Mr. Gonzalez: Conclusion. I hope, again, you receive a mandate and you mandate. They put you there to serve the citizens of this City. Chair Sarnofff. Thank you. Mr. Gonzalez: Okay? Chair Sarnofff. Thank you, sir. Mr. Gonzalez: Thank you. Chair Sarnofff. I appreciate it. Yes, sir, you're recognized for the record. Keno Cox: Thank you. I am Keno Cox. I reside at 17600 Northwest 12th Avenue, Miami, Florida 33169. Good evening, Mr. Mayor and City Commissioners. I am the chairman of the Friends of Gusmans [sic], which works to promote the Gusman Center through activities, including preservation and restoration, operation, fundraising, and marketing. I stand here before you all to respectfully request that funds go back into the operating budget for the Gusman Center. I'm aware of the budget crisis facing the City ofMiami. However, without the financial support of the Gus -- for the Gusman Center, the doors of the theater will close permanently, and the theater has been around for 84 years. Again, I respectfully ask that each of you vote to provide funds that are necessary to maintain this unique cultural and historic landmark. Any failure to provide this funding will result in irreversible damage to the structure and will undermine the $9 million that's been invested in capital infrastructure over the past decade. The Friends of Gusman board remains committed to developing additional sources and funding for the theater over the long-term. However, in the short-term, calls for funding commitments from the City is necessary to allow the Gusman Center to remain in the community as a cultural icon, to have a major impact on the economic vitality of downtown Miami, and to answer the preservation call of the many supporters here as well as our constituents, and the voices of these 2,133 petition signers. May I pass this to the Clerk, please, to the Clerk of the Court [sic]? Chair Sarnofff. You will when you're done. Mr. Cox: Thank you. As a city -owned facility, the Gusman Center relies on the City for approximately one-third of its budget, its annual budget. As an organization that supports the historic landmark and this cultural gem, the Friends of Gusman and these supporters ask that the City make the right decision to continue to fund the theater in this upcoming fiscal year, to City ofMiami Page 10 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 continue to support the downtown operators, the downtown residents, and all of the patrons and supporters of the Gusman Center. In conclusion, we thank you. We appreciate you for supporting the Gusman Center throughout the years. And I thank you for your time. Chair Sarnofff. Thank you. Yes, sir. Javier Ortiz: Sergeant Javier Ortiz -- Applause. Mr. Ortiz: -- Fraternal Order of Police, vice president, 710 Southwest 12 Avenue. Armando just gave me a bunch of ordinances that are going to be heard at September 16 regarding granting ad valorem tax exemptions, andl wonder how many of these you guys are going to grant when the City has no money. It is disheartening when the Mayor speaks of a war on pensions. I think he has his hundred -thousand -dollar -a -year pension confused with our modest pension. Using me as an example, I will not be able to retire till 2029, and my pension will be approximately $6, 000 a month retiring as a sergeant of police. I'm sure that $6, 000 isn't going to be worth much in 2029. Unlike the pension that Commissioner Sarnoff and the Mayor have, I contribute to mine. And contrary to popular belief my pension will never be 100, 000, not even close. We also don't get a pension sitting behind a desk in air conditioning, but on the dangerous streets of Miami. Commissioner Dunn, which I wish he was here, a couple of weeks ago stated that we must sacrifice like basketball superstar LeBron James. What is interesting to note is that there was not one single monetary decrease in the budgets of any of our Commissioners. Where is their sacrifice? There are only three departments that the City ofMiami needs to function, Police, Fire, and Public Works. Yet, with a forced contract, you are taking $7.6 million in concessions. According to your proposed budget, if you simply added the changes in the Office of Auditor General, the Law Department, NET (Neighborhood Enhancement Team) offices, Finance, and Parks Department, you would see an increase of $4.2 million. An increase. What's wrong with that picture? And we are all tired of hearing that our police contract was too generous. When you're 30 out of 51 police departments in pay for Miami -Dade and Broward Counties, I think the word l'errible'fs better suited than generous. "My parents told me not to be a firefighter or a police officer. I should have gotten a job with a Commissioner's office, like Sarnoff, with the expectation of getting a lucrative salary in the CRA. In conclusion, I ask each Commissioner what is your sacrifice? Thank you. Applause. Chair Sarnofff. You're recognized for the record. Arva Moore Parks: Commissioner Sarnoff, members of the Commission. I hope they're not all leaving 'cause I'm speaking. Chair Sarnofff. I don't think it has anything to do with you, Arva. Ms. Parks: I know. I'm sure it doesn't surprise you that I'm here today, any of you that know my passion for historic preservation and for the City ofMiami to be here to speak for the support of the Gusman Olympia Theater. It's been there my entire life and longer, and it's such an important part of downtown Miami. But it's really much, much more than a preservation issue; it belongs to the citizens of the people ofMiami. And since I live so close to downtown, my husband andl have a habit of going every Friday night and try out the newest restaurant in downtown Miami. Andl have to tell you, it is absolutely thrilling to see what is going on there right this minute. For the first time in my adult life, I see downtown Miami coming back with a potential of the downtown Miami I knew of my youth. Gusman is the jewel of Flagler Street, and it's been that for all of these years. Andl know -- I'm very mindful of the very difficult decisions you make, but this is like it belongs to you, it belongs to us. Andl hope you will do everything City ofMiami Page 11 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 that you can to keep the doors open and to continue it as the jewel of Flagler Street as we watch our beloved downtown really come back. Thank you. Chair Sarnoff Arva, just so you know -- and I'm going to make this known to the Friends of Gusman -- the Mayor has brought a person involved, who will go unnamed for right now, who has a plan that will save the Gusman. It will not include City tax dollars. Andl think when you see his plan and what the Mayor put together, you will be impressed and I believe that the Performing Arts Center will be jealous, so -- Ms. Parks: That sounds wonderful. Chair Sarnoff -- that plan will probably be announced in less than three to four weeks. The person who's in charge of it has asked his name not be revealed right now. But I think you should have some faith. I think Commissioner Suarez has taught me the meaning of faith. And I believe this plan will come together. I know we met with him yesterday. And suffice it to say, I don't think the Friends of Gusman need to come up any longer and instill upon this Commission that we need to use the general fund dollars to save it because there is a plan in place. It just needs to be implemented. Andl think everybody should turn around and just give a touch on the shoulder to the Mayor 'cause he was the one that implemented this, so -- Ms. Parks: Thank you. That is wonderful news. And please thank the person, whoever it is, for all of us. Chair Sarnoff Thank you. Applause. Chair Sarnoff You're recognized for the record. Rosalinda Taylor (as translated by Spanish interpreter Paul Seligman): Good afternoon. My name is Rosalinda Taylor, andl live at 1503 Northwest 9th Street, in Miami, Florida. First thing I want to do is I want to thank the Mayor and all of you Commissioners for not raising our taxes . I pay approximately $7, 000 for my house in taxes. And ifI had to pay any more than that, I would go straight into foreclosure, like hundreds of other people who've done this in my -- who are my own age. On the other side, people who have paid for -- seniors who have paid 30, 40, 50 years worth of taxes, they wouldn't be able to pay them with their limited and controlled checks. They'd also end up in a foreclosure. The first right -- one of the most important rights of a human being is to have the right to a roof. And laws were made to help the situations for us, the citizens, not for governments. Lastly, I invoke something for you. For the firemen, for the policemen, professions that I most admire, that those of us who are the simple citizens that you protect, we are pleading. We do not have work. And in this situation, this economic situation, we're suffering greatly. I believe that when it rains, all of us get wet. In such a grave situation, we can't be asking for increases, we can't be asking for subsidies. On the contrary, what we're doing in our own homes is cutting back, but it's been all these -- it's been -- the last six months that I only go to the Flagler cinema where it only cost $6. Thank you all very much, gentlemen. And for the police and the firemen, I plead, I ask you -- Chair Sarnoff You need -- Ms. Taylor (as translated by Spanish interpreter Paul Seligman): -- to please -- Chair Sarnoff -- I need her to conclude. Ms. Taylor (as translated by Spanish interpreter Paul Seligman): -- take into consideration that this is a -- to please take the citizens into consideration. Thank you. City of Miami Page 12 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoft Thank you, senora. You're recognized. Rosario Kennedy: Good afternoon, Mr. Chairman and Commissioners. Rosario Kennedy, with offices at 2645 South Bayshore Drive. Here today as a long -life resident ofMiami and a member of the Friends of Gusman. I was going to say that as I see the requests, very worthy ones before you, I totally understand how you feel because I, too, have sat in those chairs and made some very difficult decisions. Mr. Chairman of this board, I just want to thank you and the Mayor for working tirelessly to find a solution to the Gusman and to make sure that from the time that the plan is in place to, you know, come here to -- when the plan is in place, that you don't -- you save this gem in the middle of our downtown, which is -- Chair Sarnoff We don't drop the ball. I get it. Ms. Kennedy: Exactly. Thank you, sir. Bye-bye. Thank you, Mr. Mayor. Chair Sarnoff Thank you. You're recognized, Mr. -- Robert Suarez: Robert Suarez -- Chair Sarnoff -- Suarez. Mr. Suarez: -- Miami Association of Firefighters, 2980 Northwest South River Drive. Commissioners, Mr. Manager, Mayor, this budget is predicated on hopes and dreams, expectations of legal challenges to our contracts and our benefits, but your dreams are the nightmares of the City ofMiami employees. Employees are the life blood of this City. You talk about residents losing their homes, families being damaged in these difficult times. Each of you are personally responsible for the lives that are being damaged, for the City ofMiami employees. In the Fire Department, our firefighters and paramedics are looking at 20 percent salary reductions on average, some as high as 35 percent reduction of salary, on top of health insurance costs where many of our members who have sick family members will be paying an additional $12,000 a year in health insurance costs. Our paramedics in the Fire Department -- 85 percent in our department are the paramedics that serve this City -- are taking the biggest cuts of all. Ninety thousand alarms a year we respond on all hours of the night and day. Commissioner Sarnoff, last year you talked about the City Commission being the tip of the spear. How you're -- the City Commission needs to attract the best and the brightest. You spoke about this in the context of your benefits being reduced and pension reform for the City Commission. And I'll tell you, it's the employees that are the tip of the spear in this City, not the City Commission. You're here because of your employees. Your firefighters, paramedics, your solid waste, your general employees, those are the tip of the spear in the City ofMiami, not you all. That is the tip of the spear in the City ofMiami. I'll tell you now, this battle doesn't end today. As our members lose sleep at night, as their families are devastated by these financial cuts and these burdens that you're throwing upon them, the sleep that my membership loses at night, it's my promise to you that you will be reminded of that every single day. You will be reminded every single day of the hardship and the pain and suffering that you're putting on the employees in the City ofMiami. Chair Sarnoff In conclusion. Mr. Suarez: In conclusion, the Mayor was served today by another legal action that we have. Just this morning a judge warned the City of legal action and consequences of tampering with the pension plan in the City, after the history of the City of Miami's mismanagement of our plan. This will not end today. You can't treat the City employees like trash and think that tomorrow is going to be a new day and everything is going to be nice. The City employees demand respect. And this process that the Mayor spoke earlier about cooperation, that this is not any example of City ofMiami Page 13 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 cooperation between the City and the employees. This has been the worst example of a labor management relationship between a city and its employees, and it's my job to remind you of that for the rest of this fiscal year. Thank you. Applause. Chair Sarnofff. You're recognized for the record. Roy Hardemon: Good evening. Roy Hardemon, business owner, 712 Northwest 62nd Street. Commissioners, Chairman, I come here today because, again, I'm hardened by the decision of this Commission. My issue is simply community development. In 1967, '68 civil disturbance out of the great society was born in Model City. It was amended in 1974, which allowed other municipalities to begin to get their own CDBG (Community Development Block Grant) dollars for their neighborhoods. The City ofMiami made a commitment to Model City. We know it as Liberty City. And today, you know, we stand shell-shocked and destroyed. I'm asking this Commission to take a look at Community Development and see what's going on with Model City and the rest of the communities. Model City was the only community that's now -- have not had its real fair share. In 1999, when they created the trust of Model City, prior to that, the City of Miami spunt [sic] millions of dollars improperly and then dumped it on that board, which was wrong. We need Community Development and the Commission, which is the contractors between the Commission and the advisory committees. That's not happening, so therefore, Liberty City get all the police officers. Andl think the City ofMiami police officers are doing a great job. The Mayor brought them to the City -- to Liberty City and they ain't stop working yet, but I don't want to put the Police Department out of business. I want the officer friendlies [sic] back. I want to be able to do business development in our neighborhood and it starts today. I ask this Commission to let us get back with the Community Development. Thank you. Chair Sarnofff. Thank you. You're recognized for the record, sir. Jorge Garcia: Good afternoon. Jorge Garcia, president of Local 1907, 4011 West Flagler Street, Suite 405. I'm not going to repeat what other presidents have said. I know that you've all been attentive and been listening to it, and pretty much, I would repeat the same thing. The only thing that I ask is that our insurance -- the employees are calling my office and asking to take a look at the insurance. Some of us cannot afford the insurance right now. Thank you. Chair Sarnofff. Thank you. Applause. Chair Sarnofff. You're recognized for the record. Luis Trelles: Good evening, Mr. Commissioner. My name is Luis Trelles, architect. I have my office in downtown Miami, 169 East Flagler Street, Suite 828, DuPont Building, right across the street from the Olympia Theater. I just have -- would like to take a moment only to add to what has been said about the importance of saving the Olympia; that the Olympia Theater, in my experience, has been a center for activity in a very natural way through the course of the last ten or twelve years of development of downtown Miami. Downtown Miami is well on its way toward becoming a vibrant and living neighborhood. I am overjoyed to hear that there may be quick fixes or real solutions, creative ones, sponsored by our Mayor and this Commission. That elates me. But I worry because quick fixes, we will have to get lucky to have quick fixes work to our advantage. And I would like to ask the Commission to please pay special attention to the Olympia Theater because it is, indeed, a living center in downtown Miami, and this City has devoted great effort and monies to it. Please ensure that the Olympia Theater will continue to live in downtown Miami. Thank you. City ofMiami Page 14 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff Thank you. Eileen Bottari: I have a pass out. Chair Sarnoff. Why don't you do it at the end? Ms. Bottari: Okay. My name is Eileen Bottari, 505 Northeast 76th Street, Miami, Florida. I'm here to speak about the youth programs, summer camp, and citywide. For the first time this past summer, the children had to pay for summer camp, and a fee program was implemented by the Parks Department. And basically, if there was no discount, the children paid $50 per week if you lived in the City and $60 per week if you lived outside of the City. There was a fee reduction program that was offered to the children and families that lived within the City for those working-class families and families on assistance, but it was not offered for the children who lived outside the City limits. They were told they had to pay $60 a week or tough luck. Andl think that that's unacceptable. I think if we're going to have the children have to pay for summer camp, that all the children should be available to receive an opportunity for a fee reduction. When you implement a policy like this, you exclude and you hurt children who are from working class and poor families. Andl was told that the City Manager was the one who approved this policy. I'm asking the Commissioners to please change the policy so that next summer all the children who are interested in going to our summer camp will have the ability to fill out an application and be available, if their income allows it, for a fee reduction. Thank you. Chair Sarnoff. Thank you. Yes, sir, Mr. Cruz, you're recognized for the record. Mariano Cruz: Yes. Mariano Cruz, 1227 Northwest 26th Street. I signed there as a taxpayer. I shouldn't be -- I should be a fee payer only 'cause thanks to reductions and the section (UNINTELLIGIBLE) disability, I don't pay City taxes or debt service. All pay solid waste, which I don't mind paying, even the increase because that's the best service in the whole Dade County and the cheapest service, the solid waste service. I come here -- I shouldn't come anyway, but my daughter is a police officer and she told me, Papi, you have to be there. Not for me; for (UNINTELLIGIBLE), your granddaughter, okay. And the police do good work. I'm going to talk only today about the positive. Next meetingl will talk about the negative. First -- no. The next Centro Mater, they doing a good service. He even increase his area because he got Allapattah and Wynwood now. He got two service areas to service, Police and Fire. The other day, one example, September 4, Saturday, about 6, there's somebody roofing. There is a fire in the tower thing there (UNINTELLIGIBLE) was doing. Even the street caught in fire. The firemen came. My wife called 911 and put water. They took care fast and were very professional and most of them were paramedic (UNINTELLIGIBLE). Now, the police came. I don't have any problem with the police there. Sergeant Melissa Burmaster came, Officer Perez, Officer Hernandez, Officer (UNINTELLIGIBLE). They act in a professional way there. Maybe I don't know them one-to-one. The only one I knew was the red hair, Melissa Burmaster, and she was -- even if she doesn't speak Spanish, but she handle the thing with the yellow tape there and it was good. Yeah, no problem, but I know -- I don't have to deal with the boss. I don't have to deal with (UNINTET,TIGIBT,F) thing. I deal with Commander Castro, with Sergeant Mendez of the PST (phonetic), and Major Seiglie, and her, the one there that are on the street every day. Chair Sarnoff. In conclusion. Mr. Cruz: Not the one that pushing -- well, I -- like I told you, I will leave as -- I am a union organizer. Don't talk about the unions because I've been with the union. The union made me possible -- that was middle-class. I could put my children through college, okay. And the unions, like I say, are the necessary evil, okay, but what we do without the union? Chair Sarnoff Thank you. City of Miami Page 15 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Cruz: Like I told him -- Chair Sarnoff Thank you. Mr. Cruz: -- 50 percent of something is something. Chair Sarnoff Thank you. Mr. Cruz: Okay. Chair Sarnoff Thank you. Always good to see you, Mr. Cruz. Applause. Chair Sarnoff You're recognized for the record. Becky Roper Matkov: Good evening. I'm Becky Roper Matkov, executive director of Dade Heritage Trust, Miami's largest nonprofit historic preservation organization. And I'm here today representing our board and members to urge your support of Gusman. And I'm thrilled to hear Commissioner Sarnoffs announcement and want to turn our plea into a thank you'for your help and for the Mayor's wonderful support and the support of all this Commission for historic preservation. I cannot tell you -- well, I have told you, many of you before already -- but how much it means to us, after so many years of feeling that the City was not as supportive of our community's heritage and historic landmarks as we would have hoped and to see the title change has been wonderful. The City's support and particularly the Mayor's support of the Miami Marine Stadium moving forward and our attention to our heritage with the Julia Tuttle statue, and so many landmarks which have lasting value not just for today, but for generations to come. So thank you all very much. I really appreciate it. Applause. Chair Sarnoff Thank you. You're recognized for the record. Angel Urquiola: Yeah. My name is Angel Urquiola. I'm in the City for a long, long time. I congratulate you, Commissioners and Mayor, because in the first time in 35 year I see a Commissioner and a Mayor who got the guts to bring the City down like the way it is. You know why? You know it's a conspiracy in Dade County authority to destroy the City ofMiami for a long time and we have to fight plenty (UNINTELLIGIBLE). They got from us, the Water and Sewer, the port, the airport, everything, and they don't giving us nothing back. I really congratulate you. I like the police force. I like the Fire Department. Andl congratulate them for the work they do. But now we have a very bad situation. Really, I don't want to be in your place over here, believe me, because it's very hard, this problem that you have today. But we that retire already put in our time. We are supposed to receive 3 percent raise every year. For three year the federal government take it us because they need it because they are in bankruptcy. (UNINTELLIGIBLE) a police and the Fire Department (UNINTELLIGIBLE). Go out to the fire. Why do they go to work? They don't know nothing else to do. (UNINTET,T IGIBT ,F) to giving this cut and help the City to stand up because the City go down, they go down too to the ground. I really appreciate it. Thank you very much. Chair Sarnoff Thank you. Yes, sir. Craig Rodelman: Craig Rodelman, City ofMiami Fire Department, employee for 24 years. In my 24 years with the City ofMiami, I've seen the ups and I've seen the downs, we've seen the goods and we've seen the bads. Andl enjoyed the Mayor's eloquent speech about the economic downturn, the troubled times nationwide, and all the problems that everybody's facing, but the City ofMiami Page 16 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 fact of the matter is, the problems that the City ofMiami are facing are self -predicated. They're because of the actions and inactions of each one of you as well as the Mayor, the mismanagement of the funds and the misspending of those dollars. The $120 million, taxpayer dollars that are going to a parking garage at a Marlin's stadium on a piece of property that was given away and deeded to the County that'll end up costing the taxpayers over a billion dollars in 30 years, how is that properly managing your funds? Fifty million dollars to the port tunnel project and not any one of your citizens is going to be able to go through that port opportunity because that's for commercial traffic. How 'bout the money for the arts -- Performing Arts Center? I believe it's a $15 million payment due this year. The total number that you've put aside for it, I really don't know, but it's a huge amount of money. And all that money is taxpayer dollars that have been redirected through the Community Redevelopment funds. And all those projects I just mentioned would not be able to be enjoyed by the citizens, the poor citizens that you continually talk about that live inside the City ofMiami. If they are so poor and can't afford it, then why did we build it with their money? And what about the fact that no, you didn't raise taxes, and that's a good thing. I wish the County didn't raise taxes, 'cause mine are going up. But in fact, you cut taxes by 12 percent. But unfortunately, Commissioner Dunn's not here to listen to the fact that the people in his district, District 5, probably got less than $100 tax cut, but our friends at the Miami Herald that helped you with your 18-month slander campaign against the employees of the City ofMiami are probably saving millions of dollars, as are each of you that live in nice homes. And unfortunately, all that slander campaign for 18 months did is created grief between you guys and all the unions. And they also misinformed the citizens of the City ofMiami, like this young lady sitting here who thinks we're all overpaid, who thinks our pensions are ridiculously high and that's because you created a smoke screen so the truth about what you guys are doing with the money wouldn't come out. And by the way, the poor young lady behind me -- and I'm sorry; I didn't get her name -- if her taxes are $7, 000, wouldn't that make her home valued at about $600,000, Mr. Manager? I don't think that's one of the poor citizens. I feel bad for everybody and nobody should have to have a raise in taxes, but to give them a $30 million tax cut in these -- Chair Sarnofff. In conclusion. Mr. Rodelman: -- economic times -- Chair Sarnofff. In conclusion. Mr. Rodelman: -- is terrible. In conclusion, you need to really think about how you spend the citizens' money. That's what they elected you to do. Chair Sarnofff. Thank you. Applause. Chair Sarnofff. You're recognized for the record. Janet McAliley: My name is Janet McAliley, andl live at 3 Grove Isle Drive, in the City of Miami. I am here to speak on -- I am a member of the Civilian Investigative Panel of the City of Miami, andl am speaking on behalf of the CIP (Civilian Investigative Panel) this evening. We are urging you to support Mayor Regalado's budget recommendation for the CIP. The CIP has been reduced by 62 percent in the last three years. We have gone from nine employees to three employees, plus an -- a contracted attorney. Many of our remaining employees' salaries have been reduced substantially. We -- our intake of complaints now exceeds those that we are able to close. We are very short-handed. The CIP was created by an overwhelming vote of support by the citizens of the City ofMiami. We are in the Charter. It is necessary that we be funded so that we can perform the responsibilities that the citizens ofMiami expect from us when they created the CIP. It is urgent that there be a citizen oversight board in this community that can try to set City ofMiami Page 17 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 the highest standards for law enforcement in this community and that's what we're asking you to help us do. Chair Sarnofff. Thank you. Yes, sir, you're recognized for the record. Jose Echagarrua: Good afternoon. My name is Jose Echagarrua. I live at 1815 Southwest 16th; lived in the City my whole life. I'm in Commissioner Suarez district. I'm also a firefighter for 20 years. I have a question for the record. I would like to ask what is the Commission and their staff, the nonunion employees, giving up of their budget as far as salaries, as far as health care, as far as pension benefits, for the record. Commissioner Gort: They'll answer it. Chair Sarnofff. Mr. Manager. Mr. Migoya: They're receiving a similar cut as they are for the AFSCME (American Federation of State, County and Municipal Employees) employees, the general employees, as well as they're going to have the same health care plan, as well as they're going to have the same pension plan. Mr. Echagarrua: The Commissioners are all -- and their staff are receiving the same cuts? Mr. Migoya: You were talking about the nonunion -- you were talking about the non employees Mr. Echagarrua: No, no, no. The Commissioners and the Commissioners' staff -- the Commissioners, the Mayor, the -- Mr. Migoya: Oh, you're talking about the Commission staff? Mr. Echagarrua: Yes. Mr. Migoya: That has yet to be determined at this point. Commissioner Gort: I'm reducing my budget by 40 percent, so it's -- Mr. Migoya: There is no -- there is at this point no pension for them. That's something to be discussed. And as far as the health care, it will be similar health care plan. As far as what the wages are, that's going to be -- it's up for discussion today. Mr. Echagarrua: So it has been decreased or has not been decreased? Vice Chair Carollo: Mr. Chairman. Chair Sarnofff. Go ahead. Vice Chair Carollo: I know in the last budget year, we were decreased 15 percent. Each of us were decreased 15 percent. Mr. Echagarrua: Okay. Vice Chair Carollo: And we will have the same health care as you all. Mr. Mr. Echagarrua: None -- no increase in health care? Commissioner Gort: No. City of Miami Page 18 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: We will have the same -- Mr. Echagarrua: The same that you're -- okay. I think the Mayor had spoken about a partnership between the workers and the Commission. I think a part of a partnership would be for the Mayors [sic] and the Commissioners to take a similar cut -- Commissioner Gort: Sure. Mr. Echagarrua: -- in salaries, similar cut in health care, similar cut in pension benefits. So I mean, when you take these large cuts from all the workers that are working for you, you should at least take the same cuts, I think would be fair. Chair Sarnoff. Mr. Mayor, you're recognized for the record. Mayor Regalado: IffI may respond to Jose. It's a valid question, and it's important, andl think that the Vice Chairman addressed that. Last year -- in last year budget, the office of the executive Mayor of the City ofMiami was cut. Their budget was reduced by the former Mayor by 31 percent. The budget office of the executive Mayor went from almost a million dollar in past years to 600,000 this year, including the Mayor's pay and benefit. The Mayor's International Council that was part of the Mayor's office budget had a budget in the last years of half a million dollars. That office was zeroed out. There's zero budget last -- on this budget. Zero budget on this budget. All I know, the Office of the Mayor has been reduced by more than a million dollars. The salary of the Mayor was $150,000 of the executive Mayor since 2005 or 2004. Then the Mayor had a car allowance of $800 a month, plus a detail of two sergeant at arms [sic] that work exclusively for the Mayor's office. As part of the new Administration, I ask you on the first meeting that we were able to have when we had a Commission, a functioning Commission, to pass a resolution reducing the Mayor's salary by $53, 000. That is going back to the $97, 000 original, plus eliminating the $800 a month of car allowance that the Mayor. All in all, I took, the day that I took office, a cut personally of $62,600. Some -- I heard that well, anyway, he was making, as a Commissioner, $58,000. But as executive Mayor, I decided to work full time, no consultant, no outside job. I resigned my job as a TV personality in Tele Miami, a radio host, El La Fabulosa and news director of Spanish Broadcasting System. I'm just saying these personal details because I understand. Andl receive an e-mail (electronic) from his wife, which I still need to respond, because these are good people, and they are good community leader. I can tell you, Commissioners and Jose, today in my household, I live with my son, who's going full time to FIU (Florida International University). My income, as the executive Mayor, is less than it was when I was a Commissioner working in the media. So that's something that I need to say, because I understand how difficult is to pay FIU. I just had to pay the semester, $2,500, andl understand. But you know, everybody is taking a cut. And yes, Commission budgets were cut by more than 20 percent in this current budget as of what we had before. The Commissioners' salary cannot be reduced. They were approved by the voters of the City ofMiami. Only the voters of the City ofMiami can reduce or increase the Commissioners' salary. This was a referendum that passed by 78 percent several years ago. So I just want to clam that, Mr. Chairman and Commissioners. Chair Sarnoff. Thank you, Mr. Mayor. Applause. Mr. Echagarrua: I just wanted to clarify that also that the salary cannot be changed unless it's done by a vote. You've also affected the pension and the health care of all the workers of the City ofMiami. I think you've -- you're willing to do that to them, you should be ready to do that to yourselves 'cause, I mean, it's not fair for you to continue to receive complete pensions and complete health care if you're taking it away from all the workers of the City. Thank you. City ofMiami Page 19 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnofff. Thank you. Yes, sir. Applause. Julio Bacsera (as translated by Spanish interpreter Paul Seligman): Good afternoon. My name is Julio Bacsera. I live at 5154 Northwest 4th Street. I've been living in this City for 40 years, and know what the City ofMiami was and what we've had to go through. In the name of a proper inquest for all of us, a group of people who are getting together to lower property taxes, it is not fair the people that have been working here, the '60s, who used to make 60, 90, $80 an hour, whose retirement is 600 or $200. Andl don't think that it's reasonable or just. In the name of all the citizens of the City, all of us, (UNINTELLIGIBLE) five members of this board because the people of the City ofMiami (UNINTELLIGIBLE) not made a mistake (UNINTELLIGIBLE) collecting a group of politicians who are representing the people of the City ofMiami. It's sad and painful that yesterday we were at the County and 13 Commissioners who are there representing this County, in their vote they did not do what you have done in favor of the people. I support you, and next year thanks to you, the City will not go under because the Mayor and -- been working for the last 15 years. It will be very hard for this City when we're just about to be -- to have our 115th birthday to go through a bankruptcy. I'm very happy and very honored (UNINTELLIGIBLE). Well, I thank all of you (UNINTELLIGIBLE) with you and our Mayor and our City Manager, the City will not go under. And the time right now is to reduce (UNINTELLIGIBLE) -- Chair Sarnofff. Thank you, sir. Mr. Bacsera: -- (UNINTELLIGIBLE) separate with the City workers. (UNINTET,T IGIBT ,F) Thank you very much. Chair Sarnofff. Mucho gracias. Applause. Chair Sarnofff. You're recognized for the record, sir. dollars. To that end, my justification for this request should be obvious. However, for those who may be unfamiliar with Overtown, it is one of the oldest neighborhoods in Miami, created in 1896. Due to years of neglect and exploitation from unscrupulous people, this historic neighborhood has fallen on hard times and need your support to overcome the conditions associated and correlated with years of unabated poverty. During these hard times, Overtown has become the poorest neighborhood in this City with an annual household income of less than $15,000 and is suffering from the highest unemployment rate in this county. This high rate of poverty has placed the residents at risk of experiencing every social economic condition associated with abject poverty. Therefore, I beseech you to remove the Overtown CRA from this proposed budget policy and recognize that Overtown, in particularly, can ill afford to support the City's budget because this neighborhood needs every dollar it can get to overcome its own deficits. Again -- Chair Sarnofff. In conclusion. Ms. Austin: -- this is not simply a question -- Chair Sarnofff. In conclusion. Ms. Austin: -- of whether it is legal -- yes, sir -- or not, but whether or not this is moral. Thank you. City ofMiami Page 20 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnofff. Thank you. Applause. Chair Sarnofff. You're recognized for the record. J. Maldonado: Good afternoon. Officer Maldonado, City ofMiami. Just several points. I know in politics numbers and eloquency [sic], you know, goes a long way. If you can state for the record your car allowance, Commissioners, please. And let's not forget, you make twice as much as me, I'm pretty sure. But if something happens in your household, you're going to call me to save your life to risk my life, but yet, I make too much. Now, how are you going to come to the table to negotiate and you haven't written down a fair split, like he mentioned, you know. The reductions still not negotiated yet, but yet, you're asking me to give up so much. Through my pension it's too much. How can you say that? And then you don't have -- it's not like you saying, listen, I'm going to cut my salary. You can put your salaries to the public and say let's vote on it. We're in a crisis. Listen, I'm not against my pay cut, if we all going to do it. That's all I'm saying. But how, you know, as a person, as a man, to say listen, you have to reduce your salary and you make twice as much as me and say but I'm okay. But I'm the one risking my life to save you. Listen, I signed up for it and I'll take it like a man, but to say that I get paid too much and to have (UNINTELLIGIBLE) 24 hours -- I -- listen, I gave protection to Colin Powell. Those are people high above. If you have a $600 car allowance, what are you driving, what kind of car? Where is it going to stop? What the Governor's going to drive, a Bentley? I'm just asking. If you can state for the record your car allowance. In conclusion, you should get a clock so I can see my time so you don't have to cut me off. Thank you. Applause. Chair Sarnofff. You're recognized for the record, sir. David Mora: David Mora, with the City ofMiami Fire Department. I won't take too long. You know, I was born and raised in the City ofMiami, Jackson Hospital. That's where I was born at. Mom and dad moved down here from New York in the early '40s. Our house is in Grapeland Heights, you know. That's where I was raised in 1961 till now. And you know, my uncle was a fireman. I'm a captain on the Fire Department. I work in Wynwood. I used to work in Little Havana. Andl love my job. It's a great job. Last year we had this major controversy in our union and we went ahead and took pay cuts and made concessions. And we had a promise. I mean, I saw it as a promise from the City, our employer, a promise, you take these and we promise to hold what we have for two years. And then it comes up this year the promise is broken. I have to make decisions to take care of my family, and then I hear things that are spoken about here about the City and the Mayor there and the word and honor, andl don't think there is any honor. You know, my wife, she asked me, she goes, you know, can you make any decisions? I said, I don't know what they say, if they can hold their word. The word honor is gone. To me it's just incomprehensible how men and a Mayor could -- a Mayor sitting there talking about money and all that. You know, money is fine, but honor doesn't matter, a word that's given, a hand shake. We will hold this agreement with you, and I just can't see how that can be broken. You know, I have my little house over here. My taxes last year were $800, whatever it might be, and then this year they go down a hundred bucks, a hundred dollars to go ahead and cause all this friction and anger and hurt amongst family. It just -- it makes me sad. I mean, I love my job andl love being a City ofMiami fireman, but the honor has been broken. Chair Sarnofff. Thank you. Applause. Chair Sarnofff. Yes, ma'am. You're recognized for the record. City ofMiami Page 21 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Alison Austin: Good evening, gentlemen. My name is Alison Austin, and I live at 1140 Northwest 58th Street. And there are many issues that I would like to address this evening, but the time only allows me to focus on one, and so I'm here today to speak to the proposed creation of the $10.4 million CRA revenue stream that is being proposed to assist to plug the $105 million hole in the City's general fund budget. It is my understanding that general funds are unregulated dollars that are used to support any budgeted item that the City deems necessary. While I understand the importance of finding new revenue that will replace the property tax deficit, I am requesting the Overtown CRA be bifurcated from this scenario. It is not simply a matter of the legality of this proposal, but rather it's a moral question of how this loss of revenue will impact the Overtown residents' quality of life and if this use is the best use of those dollars. To that end, my justification for this request should be obvious. However, for those who may be unfamiliar with Overtown, it is one of the oldest neighborhoods in Miami, created in 1896. Due to years of neglect and exploitation from unscrupulous people, this historic neighborhood has fallen on hard times and need your support to overcome the conditions associated and correlated with years of unabated poverty. During these hard times, Overtown has become the poorest neighborhood in this City with an annual household income of less than $15,000 and is suffering from the highest unemployment rate in this county. This high rate of poverty has placed the residents at risk of experiencing every social economic condition associated with abject poverty. Therefore, I beseech you to remove the Overtown CRA from this proposed budget policy and recognize that Overtown, in particularly, can ill afford to support the City's budget because this neighborhood needs every dollar it can get to overcome its own deficits. Again -- Chair Sarnofff. In conclusion. Ms. Austin: -- this is not simply a question -- Chair Sarnofff. In conclusion. Ms. Austin: -- of whether it is legal -- yes, sir -- or not, but whether or not this is moral. Thank you. Chair Sarnofff. Thank you. Applause. Chair Sarnofff. You're recognized for the record. J. Maldonado: Good afternoon. Officer Maldonado, City ofMiami. Just several points. I know in politics numbers and eloquency [sic], you know, goes a long way. If you can state for the record your car allowance, Commissioners, please. And let's not forget, you make twice as much as me, I'm pretty sure. But if something happens in your household, you're going to call me to save your life to risk my life, but yet, I make too much. Now, how are you going to come to the table to negotiate and you haven't written down a fair split, like he mentioned, you know. The reductions still not negotiated yet, but yet, you're asking me to give up so much. Through my pension it's too much. How can you say that? And then you don't have -- it's not like you saying, listen, I'm going to cut my salary. You can put your salaries to the public and say let's vote on it. We're in a crisis. Listen, I'm not against my pay cut, if we all going to do it. That's all I'm saying. But how, you know, as a person, as a man, to say listen, you have to reduce your salary and you make twice as much as me and say but I'm okay. But I'm the one risking my life to save you. Listen, I signed up for it and I'll take it like a man, but to say that I get paid too much and to have (UNINTELLIGIBLE) 24 hours -- I -- listen, I gave protection to Colin Powell. Those are people high above. If you have a $600 car allowance, what are you driving, what kind of car? Where is it going to stop? What the Governor's going to drive, a Bentley? I'm just asking. If you can state for the record your car allowance. In conclusion, you should get a clock so I can see my time so you don't have to cut me off. Thank you. City ofMiami Page 22 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Applause. Chair Sarnoff. You're recognized for the record, sir. Herman Santiesteban: Good evening. My name is Herman Santiesteban, from 10140 Southwest 42nd Street, Miami. This night I want to tell you this. I don't know how many foreclosure or how many eviction have he suffer for the firefighter or the policemen, but we do know that there have been thousands of poor people losing their homes. That's why we are here tonight, to tell you thank you very much because you are the real firefighter fighting to keep our homes from the big fire of the high taxes. What I need a firefighter ifI don't have a home? What I need a policeman ifI don't have any money on my pocket? It's a pity that the person who represent the union didn't have the courtesy to hear us as we hear what (UNINTET,TIGIBT,F). We are free men. No man can tell us you have to get up -- stand up and get out of here. That's a pity that that gentleman didn't (UNINTELLIGIBLE) that example for us. Again, we are here to tell you you have the political courage to defend your people, the people that you had to represent. You are not here to defend one section over union. You are here to comply for your duty or defend the whole people ofMiami. Thank you very much. Please keep doing your job. Miami will never forget what you are doing tonight. Thank you. Chair Sarnoff Thank you. Applause. Chair Sarnoff. You're recognized for the record. Shawn Selleck: Hi. My name is Shawn Selleck. I live at 1501 Northwest South River Drive. And thank you, Chairman and Commissioners, for your time. I'm actually not here to speak for my own funding. I'm -- it's any understanding that it will be proposed that $10.4 million be moved from the CRA fund to the general fund andl would like to speak against this consideration. I volunteer regularly at the Overtown Youth Center, contributing both time and financial resources. I also attend Overtown Community Oversight Board meetings when I can and have grown to care for and take an increasing interest in the community. I remember being disappointed when I arrived at a CRA meeting at the Ice Palace many months ago only to find it had been cancelled for lack of quorum. Instead of going home, I walked around the community. I heard someone walking up behind me and it turned to be -- I turned around to be greeted in a friendly manner by a young man going to the free Monday night dinner offered at the Historical Mount Zion Baptist Church, and I joined him there. I tell this story just to voice my familiarity with the community and how important it is to integrate with the community. There are many reasons why the CRA was created and I've studied them to best understand them and the CRA's role as best I could. I learned about a peacemaker project that was conducted a year ago to collect HotSpot information cards so that residents can voice their concerns about the community. So I went to find out what was being done by the CRA with this information. The answer I got clearly and concisely was nothing. Commissioner Dunn -- I'm really disappointed he's not here right now -- as a representative of this district, his other title leads one to believe that he's a God-fearing man, so I was going to ask -- I was going to request that he reminded me in what verse Jesus said, andl quote, if it's legal or good. "In case the Commissioners didn't conduct the research that I have, I'd like to remind you that the CRA was created only to assist this community with badly needed tax revenue that comes only from the community itself. I request that not only you cease consideration of moving this money, but that you order the new executive director to spend more time finding effective ways to assist the community and less time seeking a legal opinion on whether you may misappropriate these funds. Thank you. Chair Sarnoff. Anyone else from the general public wishing to be heard -- City ofMiami Page 23 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Applause. Chair Sarnoff. -- with regard to BH.1, please step up. Hearing none and seeing none, the public hearing is now closed. Madam City Attorney, that was only a discussion item, am I correct? Ms. Bru: Well, at this point, you were taking a public input on the three items that concern the City's budget. Chair Sarnoff: BH.2and BH.3. Ms. Bru: Correct. And there is one of these which you will be voting on, which is BH.2. BH.2 ORDINANCE 10-00933 Office of Strategic Planning, Budgeting, and Performance 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, 2010 AND ENDING SEPTEMBER 30, 2011; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. 10-00933 FR/SR Summary Form.pdf 10-00933 FR/SR Legislation.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Suarez, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Carollo and Suarez Absent: 1 - Commissioner(s) Dunn II Chair Sarnoff. All right. So BH.2, are any of the Commissioners -- well, let's see if we can get a motion. Is there a motion to approve BH.2? Vice Chair Carollo: So move. Commissioner Suarez: Second. Chair Sarnoff. Motion by the Vice Chair, second by Commissioner Suarez. Discussion, gentlemen. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. Vice Chair is recognized. Vice Chair Carollo: It's my understanding the approval of BH.2 is approving the millage and it's capped up -- it's capped off so realistically, there's really not much to do. I mean, it's capped off. We did that back in July, so -- am I correct, Madam City Attorney? Julie O. Bru (City Attorney): You have set the maximum by putting it in your trim notice. Chair Sarnoff. You can lower it. That's it. All we can do at this point is lower it. Vice Chair Carollo: And right now capped, we're looking for -- as it is right now, capped is a $37 million reduction in property taxes, correct? Mirtha Dziedzic (Interim Director, Strategic Planning, Budgeting & Performance): It's a reduction from the rollback rate of 29.1 million. City of Miami Page 24 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: Twenty-nine point one million? Ms. Dziedzic: Um -hum. Vice Chair Carollo: 'Cause I think the original amount was 37 million. Chair Sarnoff. You're right, it was. Vice Chair Carollo: Okay. Ms. Dziedzic: Add to the 95 percent collection rate, the true rate will be more closely to 90 percent. Vice Chair Carollo: Okay. No further questions. Chair Sarnoff. Mirtha, with -- as long as you said that -- andl think the general public should be made aware of that -- the State mandates that we demonstrate a 95 percent collection rate. Ms. Dziedzic: Correct. Chair Sarnoff. But you don't anticipate a 95 percent collection rate? Ms. Dziedzic: We're trending at the current fiscal year between 89 and 90 percent. Chair Sarnoff. Right. And you're making that up in the NDA, the nondepartmental account? Ms. Dziedzic: Correct. There's a reserved line item for uncollectibles of about $12 million. Chair Sarnoff So just that the general public would know this, even though the State mandates that you demonstrate a 95 percent collection rate, you have no intentions of creating a budget that doesn't have a demonstrable 89 to 90 percent collection rate? Ms. Dziedzic: Correct. Chair Sarnoff. All right. Vice Chair Carollo: And Mr. Chairman. Chair Sarnoff. You're recognized. Carlos A. Migoya (City Manager): IffI -- Vice Chair Carollo: That -- Mr. Migoya: -- may, Mr. Vice Chair. To clarify, the projected property taxes we'll collect this year is $245 million. If you then add the uncollectibles from the 95 percent, the 223, you'd be at 211, so you'd be closer to a $34 million difference in revenue, which is closer to the number that you had. Vice Chair Carollo: So the reduction is 34. But taking into consideration the uncollectible, that's how you lower the amount to about 27 or so? Mr. Migoya: That's correct. City of Miami Page 25 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Dziedzic: Correct. Vice Chair Carollo: That's correct? And the amount reserve from collectibles is about $12 million? Ms. Dziedzic: Correct. Vice Chair Carollo: Why -- I don't know if it's a state statute, a code ordinance, or so forth, but why are you showing it as an expense instead of a (UNINTELLIGIBLE) revenue account and showing it as, you know, a negative in the revenues or netted out? Ms. Dziedzic: It's a state statute that states that the -- we cannot adjust our revenues to make up the difference, so reflecting lower revenues in revenue items that we expect to collect at a higher rate in order to offset that uncollectible amount. Vice Chair Carollo: I actually started checking some of the numbers and it seems like it's in line with what occurred last year. Apparently, last year we were estimating that we were going to receive X'hmount of dollars for property taxes -- ad valorem taxes, and we actually did not. We received a lot less. Ms. Dziedzic: Correct. Vice Chair Carollo: And that's why we're making the adjustment that was not made last year. Ms. Dziedzic: Correct. Vice Chair Carollo: Thank you. Chair Sarnoff All right. Commissioner Suarez: Mr. Chairman. Chair Sarnoff You're recognized for the record, Commissioner Suarez. Commissioner Suarez: Thank you. I just want to confirm also, Mirtha, for the general public that -- sorry for calling you Mirtha. Ms. Dziedzic: That's okay. Commissioner Suarez: -- we are also -- the City Manager's also holding in reserves an additional $5 million. I think that, in combination with what the Vice Chairman just stated, hopefully will prevent us from falling back into the practice that we were engaging in before this Commission was elected, where -- Ms. Dziedzic: The $5 million is actually required by a financial integrity ordinance. Commissioner Suarez: No. I know. But I'm saying the 5 million, in combination with the 12.8 -- Ms. Dziedzic: Correct. Commissioner Suarez: -- I think what happened was before, for whatever reason, at the end of the year, particularly when we have reserves, the -- you know, kind of the informal practice was to just reconcile it out. And we'll see that there will come before us a reconciliation for the last budget year that we did not vote on, which will reduce our reserves from -- at one time I think it was a high of 140 million to 12 million. City of Miami Page 26 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Dziedzic: Approximately 12 to 13 million. Commissioner Suarez: So you feel confident that reserving this money will prevent us from getting -- Ms. Dziedzic: Having -- Commissioner Suarez: -- in this situation again? Ms. Dziedzic: Correct. This will prevent us from having to dip into the fund balance to cover loss of revenues. Commissioner Suarez: And we really don't have much of a fund balance to dip into. Ms. Dziedzic: We don't. Commissioner Suarez: We have no margin for error. Ms. Dziedzic: No. Chair Sarnoff All right. Madam City Attorney, it is an ordinance. Ms. Bru: Okay. So this will be the ordinance that sets the proposed -- fixes the proposed millage rate. The Ordinance was read by title into the public record by the City Attorney. Priscilla A. Thompson (City Clerk): 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. BH.3 RESOLUTION 10-00934 Office of Strategic Planning, Budgeting, and Performance A DRAFT FORM PROPOSED RESOLUTION OF THE MIAMI CITY COMMISSION MAKING APPROPRIATIONS RELATING TO OPERATIONAL AND BUDGETARY REQUIREMENTS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2011. 10-00934 Appropriations City of Miami.pdf 10-00934 Summary Form 9-27-10.pdf 10-00934 FY11 Proposed Budget Summary9-27-10.pdf 10-00934 Legislation 9-27-10.pdf 10-00934-FY'11 Proposed Budget (Summary).pdf DISCUSSED A motion was made by Commissioner Suarez, seconded by Commissioner Carollo, and was passed unanimously, to adopt a tentative budget for FY2010-2011. Chair Sarnoff Madam City Attorney, we've adequately discussed PH 3 [sic], correct? Julie O. Bru (City Attorney): Okay. This is the proposed budget, which, you know, you can discuss, you can amend it, you can make suggestions to the Manager. This is your time to have City of Miami Page 27 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 input into this budget, which will come back for you -- to you for adoption at the final public meeting. Chair Sarnoff Are you going to do a presentation, Mr. Manager, or is it just what you provided to us? Carlos A. Migoya (City Manager): I think the presentation was the high-level presentation we made prior to the questions. So at this point in time, we're ready to have -- answer any questions or discussion that you may have and may wish to have with us. Chair Sarnoff All right. The Vice Chair is recognized. Vice Chair Carollo: Thank you, Mr. Chairman. I just wanted to see how my colleagues feel. I have a feeling this is the item that's going to take the longest, since it's the whole City budget. And we have some other organizations here, DDA (Downtown Development Authority), Bayfront, MSEA (Miami Sports & Exhibition Authority); there's Solid Waste, there's the FIPO annual budget, GESE (General Employees and Sanitation Employees), and so forth. Andl was thinking of maybe we should take some of those before adjusting this because I have a feeling this might, you know, be the most lengthy one of all. Chair Sarnoff All right. Vice Chair Carollo: So I just wanted to see how everyone felt. Chair Sarnoff Everybody okay with tabling BH.3 to the end? Commissioner Gort: Yes. Chair Sarnoff All right, let's do BH.3 at the end. [Later..] Chair Sarnoff All right. I think it's time for the calculators, the interplay. What is that, BH (Budget Hearing) --? What's the --? Priscilla A. Thompson (City Clerk): You have BH.3 and -- Commissioner Dunn: BH.9. Ms. Thompson: -- BH.9. Commissioner Dunn: BH.9. Chair Sarnoff No. BH -- Commissioner Dunn: 3 and BH.9. Chair Sarnoff BH -- Commissioner Gort: We're going to go through departments first. Chair Sarnoff Right, into the departments. Which one was that? Commissioner Gort: (UNINTET,TIGIBT,F). City of Miami Page 28 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff. BH.3, making appropriations. Yeah, BH.3. Mr. Manager, this is where you better get sharp. Carlos A. Migoya (City Manager): Yes, sir. Chair Sarnoff. Do you need some Cuban coffee or --? Does anybody have some Cuban coffee? Mr. Migoya: Can we do that? Chair Sarnoff. BH.3. We will get you -- Mr. Migoya: We may get blamed for having a party. Chair Sarnoff. -- some high octane. Andl think all we need to do is recognize the Vice Chair. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. You're recognized, Mr. Vice Chair. Vice Chair Carollo: Thank you. Does anyone have any preference of how to move forward? No? Commissioner Gort: (UNINTET,TIGIBT,F). Vice Chair Carollo: Well, we're -- yeah, but we could go many different directions. Chair Sarnoff. Why don't you start with the biggest -- with the smallest? Vice Chair Carollo: It's a lot of things. Chair Sarnoff. Take them in the order you have them. Just try to point us in the direction of what page you're on or -- Vice Chair Carollo: Okay. One of the things that I mentioned before was the IT (Information Technology). It's actually -- let me see ifI could find it. In our fiscal strategies, the additional needs. If you notice, they're asking for $3.3 million for, what is it called, ERP (Enterprise Resource Planning) ? Okay, for ERP, I believe, they're asking for $3.3 million. First of all, let me -- I have a question. Where are you going to show that amount? In a capital account? And if so, which one? Mirtha Dziedzic (Interim Director, Strategic Planning, Budgeting & Performance): Mirtha Dziedzic, Budget Department. The 3.3 will be allocated as a transfer out in NDA (Nondepartmental Account), and then it will be transferred to a capital fund. Vice Chair Carollo: Which one? Ms. Dziedzic: There's various accounts, but we're trying to get clarification from capital -- Vice Chair Carollo: Well, the reason why I'm asking is because I received an e-mail (electronic) from Larry Springs [sic] andl -- actually, it was -- no. IIt was actually from you, Mirtha. And it lays out what we spent on ERP for the last few years, yet I couldn't find it on the CAFR (Comprehensive Annual Financial Report). So I don't know what capital outlay it's at. Ms. Dziedzic: It's in the general government fund in capital, which includes a lot of other activities other than just IT. City of Miami Page 29 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: Okay, 'cause when I looked at it in the CAFR, I -- like I said, I didn't find it, so that's why I'm asking. Where are we accounting for this? Ms. Dziedzic: The CAFR will show it at the fund level, and within that fund, there is various awards and projects, so we would have to give you a breakdown of those projects for you to actually see the IT portion. Vice Chair Carollo: Obviously, you know I'm going to want that 'cause I need a breakdown. And actually, if you could tell me what page so that I could see it in the CAFR. Andl guess you don't have to do it right now, but -- Chair Sarnoff. Show it to him. Try to answer all his questions now. Diana Gomez: Diana Gomez, Finance director. On page 17 of the CAFR, you have the revenue expenditures of the general government fund, capital general fund -- general government capital projects fund. It's one of the major funds -- Vice Chair Carollo: Right. Ms. Gomez: -- so it would be in the general government section of the expenditures -- or actually, the capital outlay. So it's part of the $16 million total expenditures for the general government fund under expenditures, but there are many different expenditures in that number, many different projects that roll up into that one number. Vice Chair Carollo: Into the 8.8, 8. -- Ms. Gomez: If it's put through to capital outlay, then yes, it's in the 8.8. There could be some in the general government expenditure, so I would look at total general government operating expenditures or total expenditures of 16.3. It's in the 16.3 number. Vice Chair Carollo: Would you be able to give me the breakdown of where you allocated for 2009-2010 years? Because what I'm seeing also is that -- through this e-mail, I see that we have spent over the last three years, 8.9 million on ERP. Yet, when I ask for the breakdown of the ERP for this, the schedule that I received where it shows that it's under account number 664000, machinery and equipment, I don't see an amount for last year, and this -- Ms. Dziedzic: That is their general fund request for the contribution to capital, so you're not going to see the capital expenditures there. That's only their request for the current fiscal year. Vice Chair Carollo: But I'm seeing their ERP implementation integrated budget module for 440, 000. Ms. Dziedzic: Right. That's to account for the request that they require for the current fiscal year to be transferred out where it will be expensed in a capital fund. But it -- you're not going to see the expenditures for previous years because that's general fund. Vice Chair Carollo: Okay. And as -- hold on. So the 3.328500 proposed, okay, isn't that the 3.3 that is showing in the fiscal strategies? Ms. Dziedzic: We're basically saying that 3.3 is all we have available. Vice Chair Carollo: And the actual for 2009, you're showing 3,752? Ms. Dziedzic: That would be minor capital items that they've procured in the general fund. City of Miami Page 30 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Those will not be related to capitalized items. Vice Chair Carollo: But it's the same capital outlay subtotal. It's the same account. Ms. Dziedzic: For the purposes of requesting their capital -- it's just a systems -- the way that we put it in our system to account for capital needs by the department, but that's not where it will be. The actual contribution will be housed in NDA in an 891, which is a transfers out line item. It's just that that's where the breakdown for the capital items were detailed. Vice Chair Carollo: Okay. We're -- Ms. Dziedzic: For the purposes of justifying the expenditures and what they will be used for, that is the line item that they were -- that was used. Vice Chair Carollo: Okay, so -- Ms. Dziedzic: For purposes of budget, it will be budgeted as a transfer out in NDA. Vice Chair Carollo: Okay, so the 3.3 that we are discussing -- Ms. Dziedzic: Yes. Vice Chair Carollo: -- okay, the breakdown of it is what's here in machinery and equipment that you gave me, right? Ms. Dziedzic: Correct. Vice Chair Carollo: Okay, so that's the 3.3, so we're talking about the same amount. And it starts off with $650, 000 for replat Legacy and so forth? Peter Korinis: Yes, sir. Peter Korinis, Chief Information Officer. Vice Chair Carollo: And then the 850,000 for ERP upgrade. Mr. Korinis: Yes, sir. There are a number of items. It's not all ERP, as you can see. The replatform item -- if you'd like me to take just a moment to explain -- Vice Chair Carollo: Sure. Mr. Korinis: -- each of those -- is the item to get off of the mainframe, which we have talked about before. We had originally intended to fund that out of the Sunshine State loan, but we're not going to use that Sunshine State loan anymore, so that's why you see them now in capital expenditures. So replatforming was to move off the mainframe. There's a savings that'll accrue from that as we don't have to pay the licensing and the maintenance support once we're off the mainframe. There are five applications left to go. Second one -- Vice Chair Carollo: Hold on, hold on. Mr. Korinis: I'm sorry. Vice Chair Carollo: Hold on, hold on. This is something that I requested, so you may not -- yeah, you may not have this. This is just additional information I've been requesting. Mr. Korinis: I believe that is in the BDCS (Budget Data Collection System) budget. I'm not sure, Commissioner, if you've got that, but it is in there. City of Miami Page 31 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: I don't know Ire -- I know I requested it andl got it through e-mail. Ms. Dziedzic: It is in BDCS and we can provide you with a copy of those details. Vice Chair Carollo: Now here's what I don't understand -- and again, I'm not an IT person -- Mr. Korinis: Sure. Vice Chair Carollo: -- but if we are getting off the mainframe and it seems like we're going to a new system, why's your repair and maintenance gone up so much in your budget? I mean, it seems like we're getting off the mainframe, we're going to a new system. Mr. Korinis: Specifically, to answer that question, until we get off of the mainframe, we have to pay somewhere in the vicinity of 300 plus thousand dollars per year on licensing and maintenance for that mainframe. So this investment has to be made to get us off of the mainframe. Once we're off the mainframe, then we will no longer have to spend the 300, 000. So right now you see the 650,000 to get off the mainframe plus the 300,000 that's in our operating expenditures to pay for licenses as long as we stay on the mainframe, so the two of them are complementary or anti -complementary, however you want to look at it. Those are -- those licensing and maintenance for the mainframe is in the budget compilation in the repair and maintenance category of IT operating budget. Vice Chair Carollo: Yeah, exactly. You're going from this year an amount of 1.7 million to an amount of 2.3 million for next year. And I'm -- Mr. Korinis: And the -- Vice Chair Carollo: I mean, I'm not an IT person, but I'm thinking if we're going to a new system, if we're going to get off the mainframe, why are we spending so much on repair? Mr. Korinis: We have to spend that 300,000 for this upcoming year because we are staying on the mainframe. If we were off of it right now, that amount would be 300 -- 350 -- I can't remember the exact number -- less. Vice Chair Carollo: So what you're telling me is you need to spend an additional 600,000 because we're movingfrom the mainframe? Mr. Korinis: We have to spend 600,000 to get off of the mainframe. Once we're off of the mainframe, we will no longer have to pay the $300,000 per year in maintenance and support for the mainframe. Vice Chair Carollo: No. You'll have to pay 600,000 'cause you're increasing it -- Mr. Korinis: No. Vice Chair Carollo: -- by 600. Mr. Korinis: That's one -- that's one-time expenditure to do the software development to get us off of the mainframe. There's no hardware. That's all a contractor cost to rewrite applications. There's five applications left on the mainframe. Six hundred fifty thousand dollars rewrites those applications. As soon as they're rewritten and running on a different platform, then we can do away with the mainframe and we no longer have to pay $330,000 in mainframe license and maintenance to operate the mainframe. So it's an either/or. We can't get rid of the mainframe until we've done the replatforming. City of Miami Page 32 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: And mainframe licenses and so forth that you say that we don't have to pay, do you know what -- where in your budget that is? Mr. Korinis: Yes, sir. It's in the repair and maintenance. I -- Vice Chair Carollo: But -- Mr. Korinis: -- if you have BDCS, I can probably give you a page number. Commissioner Gort: Isn't it 17 of 39? Mr. Korinis: I think it's -- Vice Chair Carollo: I just don't re -- see any -- where you're reducing that 300, 000. I just see it increasing by 600,000 from the actual -- of this year. Mr. Korinis: Sir, you won't see it reduced in the operation and maintenance because we won't be off of the mainframe until we have exercised the replatforming, spent six months to do the rewrite, and then we're off of the mainframe. So you will see it in there for this year. Vice Chair Carollo: So you're saying we're going to spend $1.2 million to reduce 300,000 next year or the following year in licenses and fees? Mr. Korinis: If you chose not to do the replatforming and stay on the mainframe, you would spend $350,000 a year forevermore as long as you're on the mainframe. This 650 gets us off of the mainframe and allows us to start saving 350,000 every year in the future. Plus, there's four people that -- four positions we won't need anymore. So there are -- there's savings. The recoupment is just a little over two years. Vice Chair Carollo: Okay. Mr. Korinis: Commissioner, it's on -- again, I'm not sure if you've got the same BDCS I have, but it's page 14. Vice Chair Carollo: I have it on -- I have it in -- Mr. Korinis: Page 13, number 31 says UNISYS mainframe software and license support, 306, 000. That's the maintenance one. Vice Chair Carollo: I'm sorry. What are you looking at? Mr. Korinis: I'm looking at -- on my printout, it's page 13 [sic], but Mirtha said it was page 13 on yours so -- Vice Chair Carollo: Page 13 of --? Mr. Korinis: Of this BDCS. Vice Chair Carollo: I got it, I got it. Yeah, I have it on page 18. Mr. Korinis: Okay. Well, it's item number 31, UNISYS mainframe software and license support. Vice Chair Carollo: No. I don't think we're seeing the same thing. But regardless, going back to the 3.3, that's 650 of the 3.3. Now considering what we spent on ERP in the last few years -- I City of Miami Page 33 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 mean, the last three years we spent $8.9 million. You know what, define ERP, please. Mr. Korinis: Enterprise Resource Program [sic]. Vice Chair Carollo: So we spent -- Mr. Korinis: So it's -- Vice Chair Carollo: -- we have spent $8.9 million in the last three years on Enterprise Resource Program [sic]? Mr. Korinis: Yes. And to make it clear, sir, that's our finance system, our purchasing system, our projects and grants system, our HR (Human Resources) system, our payroll system, and our self-service part of the payroll and Human Resources systems. It's an integrated -- that's the Oracle, ERP system. It's an integrated system that has basically all of the back office data, all of the financials, the purchasing, all integrated budget, payroll, personnel. Vice Chair Carollo: Okay. Question. In these tough financial times, I see ERP to replace the Legacy track, CIP, for land management, I guess complete building, and then also to implement integrated budget module, and those three amounts is 720, 000, 500, 000, 440, 000. I'm just going with what I have seen in my short time here. The -- and again, I'm not an IT person -- but the history that we've had with Oracle, does it make sense to, you know, at this point in time where, you know, we're going through these tough financial times, implement all this at the same time, the CIP (Capital Improvements Program), the Building Department, the budget module? Mr. Migoya: Mr. Chair, may I address that? Vice Chair Carollo: Sure. Mr. Migoya: Mr. Korinis andl have spent many wonderful times -- some people might consider it parties, butl don't -- having discussions around this. Specifically as it relates to the conversion of CIP and budgeting specifically, what's important to that is the fact that one of my key issues from the very beginning is the fact that we have not been able to tie budgeting and CIP projects without having to do it manually. The results of which you will see on September 23 on some of the issues that we've had, lack of projects that were not properly funded because we did not have good communication between the systems. The progress of being able to do this not only allows us to have a dashboard that we're able to get every one of us to know exactly where every project is, but the funding that goes with the projects along with it. And if we chose to, we can even further take that into a Web site in which the public can even look at those projects themselves. So to me, it -- because of these difficult times is when you want to have as much systems as possible to make sure that we can crosscheck all these projects, make sure that we're properly monitoring what's going on with the projects and the dollars that are tied to them so that there's no ability for any of this money to walk away without having the proper checks and balances. So I guess it's a long answer to say it's a tough thing to do, but I -- we -- you know, we're on the horse right now -- on the Oracle horse. We need to ride it, and this is the next step that we have to do. And it's very important to integrate two very important pieces, which are the CIP, Capital Improvements, side and budgeting 'cause that -- and in addition to that piece, budgeting will then -- will make their life easier 'cause they'll be able to get all the info from all the different general ledgers and all the different projects, so it will make their life easier to be able to do the projects and everything else that are necessary here. So I'm not an IT person either, like you, but I've been learning a lot about this over the last several months as to the reason for doing this so -- and my experience with IT is that it's like a hole in the ocean in which you keep throwing money into it, but it's money that is wisely invested because, at the end of the day, it's going to hopefully make our life easier from a standpoint of information systems. City of Miami Page 34 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff Could you yield to Commissioner Gort for a moment? Vice Chair Carollo: Sure. Chair Sarnoff Go ahead, Commissioner Gort. Commissioner Gort: Just one question. At this time, the -- are we able to communicate with each other? Mr. Migoya: Sorry? Commissioner Gort: At this time, are we able to communicate, all the departments and centralize it? No? Mr. Migoya: Not at this point. No, sir. Mr. Korinis: Commissioner, the way -- Commissioner Gort: How long it will take? Mr. Korinis: -- that communication is done now is by uploading and downloading spreadsheets, Excel spreadsheets. So that's the way the budget moves back and forth, and that's where you have your sources of error when you try to do that sort of thing. In the case of CIP, they have a system called TRACS (Transportation Automated Control System), and then there's another system and -- so there's two sets of data and that's where some errors arise. Mr. Migoya: That's why the inaccuracies in the past in a lot of this budgeting process -- and that's why these ladies have been working seven days a week 'til midnight to make sure that it's accurate as much as we can -- Chair Sarnoff Mr. Manager -- Mr. Migoya: -- on all these provisions. Chair Sarnoff -- I know that --I know you andl have looked at the upcoming agenda. There are going to be about ten items that are going to talk about budget -- projects that went beyond budget. If I'm understanding what you're saying correctly, if you had this slice, I guess the way I describe computer programs, integrated where CIP and Budget were the same, red flags would have been sent up immediately that this is now an unbudgeted project, that there's no funding source identified for this project. That would have then somehow made its way to you, and you would have said who approved this or who -- what Commissioner or what director or who is going out and telling a contractor to change a ceiling from eight feet to twelve feet, or who's putting a fence up where there's no fence approved or --? Mr. Migoya: And ifI would have been asleep on the job, you all would have been able to look at your specific projects and seen that there is no money and you would have been able to ask some of the same questions. So it's not just one individual but all of us together being able to look at all this information. And we can take it one step further. We can literally put it out on a Web in which the public can see what's happening with the projects around their neighborhoods. But I mean, the idea here is to be as transparent as we can with all those -- and that's just one example. The idea of -- one of the things I've asked budgeting to do, which is part of what we are right now from a budget for next year, is -- since the very beginning, is making sure that Budget is responsible for reconciling all project accounts for the entire City. So -- there has never been a reconciliation at the project level. It's all done at the fund level. So the idea would be whether it's Police, Fire, CD (Community Development), CIP, and whatever else, the City of Miami Page 35 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Homeland Security, all the different funds and special revenue accounts, that they are -- they would be reconciled on a regular basis so that we don't have these issues of these movements back and forth that we don't know what's going on so we have constant reconciliation and making sure if there's any posting errors, they're caught immediately so we don't have these kind of issues that we find out three years later. So it's kind of like a long answer, but at the end of the day, it's all about information systems. Andl don't like it any more than you do because it costs a lot of money, but it's probably the best way to keep us out of the troubles that we have gotten ourselves into. Vice Chair Carollo: Thank you, Mr. Manager. I mean, in all fairness, you're right. I don't like it, but it's hard to argue against that. I mean, first of all, I'm not an IT expert, and second of all, you're telling me this is what's, you know, recon -- going to reconcile our accounts and so forth, so it's hard to argue against that. Okay. I'll move on. Eight hundred and fifty for IT personnel. It's an additional 850 -- I know we've mentioned it briefly and so forth, but could you elaborate a little bit more on that, Mr. Manager? Mr. Migoya: I'm happy to. Let me -- ifI can -- because I've been the one talking and, Peter, you can add to what I'm going to talk about here. Last year we spent over $2 million in consultants. There were -- predominantly, a lot of the consultants were for the systems conversions, about 2.1, $2.2 million. All of that money was not funded from the general fund expenses, so they were not thrown through the -- they -- 'cause they were capitalized and financed by the Sunshine State as -- Sunshine State loan. You might remember, I had a conversation with each of you about that. Now that is perfectly legal. And when you're doing a systems conversion, you're able to capitalize software, hardware and people use for the conversions. However, I don't consider that to be the conservative way of doing that. So I've asked to change that going forward so that the only thing we do capitalize will be software and hardware and not the people themselves. So when you see 850 here, this also -- in the IT budget, there's an extra 850 -- is it 850,000 also? -- in people that were previously doing consulting work but now because the systems are now in place, they're going to be doing maintenance work. So in that number of the IT budget, there's some of those consultants now moved into permanent employees. And then this 850 is a range of between three and seven consultants -- is that the number? Mr. Korinis: Yes (UNINTELLIGIBLE). Mr. Migoya: Three and seven consultants that we will have during the year to help us with the conversion process for all these projects that we talked about in the capital expenditures side. So we went from -- long answer is we went from 2.2 to 1.7. But of the 1.7, half is now in the IT budget; the other half is now in capital expenditures. So we actually have reduced those numbers. Vice Chair Carollo: It sounds good. I need to see where the 2 million we spent before 'cause for this year's budget, when I see the 850 that you're speaking about, it seems that this year we spent 841, 000. You have -- Mr. Migoya: The 8.9 you were talking about previously, sir? Vice Chair Carollo: No. Mr. Migoya: Include -- the 8.9 included -- Vice Chair Carollo: No -- right. Mr. Migoya: -- the $2 million in consultants. That was capitalized. Vice Chair Carollo: Okay. And I'll be back -- I'll go back to see the 2 million from there. City of Miami Page 36 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 However, the 850 where you're placing it, it seems like this year we spent 841, 000. Do you know what -- it's under professional services. Mr. Korinis: That was for professional services. Some of it was for ERP, some of it was for land management, and then there also was money spent out of Sunshine, as the Manager just mentioned, for some of the work that was being done as well. So it was charged against both. Vice Chair Carollo: You know, and it's something that normally wouldn't catch my eye because it's in line with what you spent, you know, this past year. But I just -- you know, it's an eye popper, I guess, that -- you know, it's something -- it's going to be something new; yet, for that same account, we spent 841,000 this year. So, you know -- and once again, now you're telling me that's part of ERP and this other thing, which I'm starting to question the consistency of you know, the accounts from year to year. Mr. Migoya: What happens is you're going to have a lot of one times as you're doing the different conversions. Mr. Korinis: The -- Mr. Migoya: Go ahead. Ms. Dziedzic: The projection for -- of 800, 000 for the current fiscal year in that line item is because we're using some of the savings realized by the IT Department to pay for that, those capitalized costs. So we're sending $800, 000 from their savings, from their operational savings to pay for that. So it's not a real expenditure as of yet. It's going to be transferred to pay for those capitalized expenditures. Vice Chair Carollo: Say that again, I'm sorry. Ms. Dziedzic: The -- Vice Chair Carollo: The 841 for this? Ms. Dziedzic: For the current fiscal year, 841. Vice Chair Carollo: Right. Ms. Dziedzic: Out of that 841, 800,000 is going to be contributed to pay back some of those capitalized expenses that were being captured in capital for those consultants. So IT had operational savings overall this fiscal year. Out of those operational savings, we're using some of that to pay back some of those capitalized expenses for the consultants of the current fiscal year. So out of the 2.2, 800 will be paid back. Vice Chair Carollo: And why are you showing it in professional services? Ms. Dziedzic: Because that's where they have the allocation in the current fiscal year. Mr. Korinis: Commissioner, one of the differences here is the stuff you're seeing in the capital piece for this upcoming year is new work. It's enhancements, it's additional software development. There's another piece of this which is ongoing maintenance and operational support. So the maintenance and operational support pieces were in the operating budget, the 841 you're talking about. Vice Chair Carollo: Right. City of Miami Page 37 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Korinis: And then these pieces are the enhancements, the new modules, the new development, the stuff that is capitalizable [sic]. So there in fact were two different functions, andl think that partly attributed to why you see it in two different places in the ledger. Vice Chair Carollo: I'm not going to continue with this because, in all fairness, you know, there's a lot more to go over. However, before the next budget meeting, I definitely want to tackle this a little bit more. I think, you know, some of these numbers from previous years, I might want to have a breakdown, see exactly this 2.4 million that I'm seeing from 2009/2010, what exactly is included in that ERP. Maybe even go back to 2008/2009, see what 2.8 was exactly included in that ERP and so forth. So that's something that I'm giving you a heads up, Mr. Manager, yeah, you know, so we could -- 'cause when you tell me, hey, those 2 million, that's what you're seeing in capital outlay. Well, let's actually look at it. Let's see what it really is. And as you know, you know, you smile, but you know that's the only way to do it, you know. So if you're telling me, hey, it's the 2 million that you saw back then. Well, let me have the breakdown of this 2.4 million and let's really see if it's really there, okay? That's it for IT and the additional needs. However, since he is here, should I just continue with his budget? What -- could I? Yeah? Chair Sarnoff Yeah, please. Vice Chair Carollo: In travel and per diem, do you all do a lot of traveling? Because I see that for the budgeted amount for FY10, there was zero. However, you traveled this year two point -- $2,300 worth, yet you're asking for $25, 000 in travel and per diem, and I was wondering why. Mr. Korinis: The bulk of that 25,000 is for training. There are a number of training opportunities that we send our people to, technical training, whether it's Oracle or one of our other systems that in fact we can't get locally, so there's a cost for the training and a cost for the travel and per diem. In the past we have had significantly higher budgets if you go back several years because of the need to maintain the technical capabilities of the staff. That 25,000 is a lower number than we've had in some past years, but you're right. It was only 2,500 the previous year, and that was because of courses that had registered and then spanned the fiscal year. There was really not intended to be any expenditure, but there were some that carried over a year. Vice Chair Carollo: Mind you, in past years, we also had a lot more money coming into the City coffers. Mr. Korinis: I understand. The goal back then was to try to provide every IT technical person with one course per year, and so that was what we were aiming for back then. This 25,000 was to provide some level of training for the staff but certainly much less than before. Vice Chair Carollo: Question, what did you do this year? 'Cause you only spent 2,300. Mr. Korinis: That's what I was saying, sir. We did nothing this year in the way of training. That 2,500 was a carryover where there was a course that was attended right about at the break of the fiscal year, and there were some expenses that came in after the fiscal year and therefore got paid for this fiscal year instead of the previous year with the training. Vice Chair Carollo: And some of those courses, can they be locally or --? Mr. Korinis: We do as many as we can locally. There's -- but that money -- Vice Chair Carollo: And are they necessary? I mean -- and by all means, I'm one that I'm all in favor about training and so forth. However, when I see an increase of you know, twenty some thousand dollars just for travel, I have to question it. City of Miami Page 38 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Korinis: It's travel and training. It's the cost of the training as well. So it's -- there is no other category in there that has training in it in my budget. So that the training costs themselves are in there. And those might very well be 1,000, 1,500, whatever, per day of a course. And a five-day course, you very quickly eat up that 25,000. Commissioner Gort: Can you yield for a minute? I'm not an IT person, so this question might sound very ignorant. But when we purchase this software, don't they have training to go along with it? Mr. Korinis: Yes, sir. For example, on Oracle, when you buy an Oracle system, you get training credits for some amount of training so you might get, you know, 200 hours of worth of training when you purchase a given module. We have gotten that. We have used it. It's all gone. Other softwares, sometimes you get training or you get training credits, and sometimes you don't. Then there's always, you know, new people that you need to get trained, backup people, people that leave, whatever. Commissioner Gort: Well, shouldn't we have people in the staff trained so they can -- they have the ability to train somebody else new or train --? Mr. Korinis: We do on -the job training as well, absolutely. So -- I mean, we use any training that we can get. We use webinars where you can, you know, sit in the training room and connect online and get training. We've tried to be, you know, as frugal as we can when it comes to getting training. Twenty five thousand dollars doesn't honestly get very much technical training when you consider the size of the staff and the fact that they -- that the speed with which technology changes and the ability to keep them up-to-date with the technology, it's expensive. Now the alternative is you get contractors or consultants, but that's very expensive too, so we try to do a tradeoff and do some of each. Vice Chair Carollo: Is it possible that between this meeting and next meeting you could show me or show this Commission -- or it doesn't have to come before this Commission but you know, at least my office, at least I want to see some brochures, so forth. I want to see what type of training these -- this is or, you know, what's the cost and so forth. Are they going to Hawaii for this or are they going, you know -- where are they heading? I just think 25,000 is a lot, especially since last -- you know, this year you actually, you know, have a very small amount. And I understand. I mean, in tough years you do less training and so forth, but that's exactly why, you know, next year I see a big, big jump and it jumps out. I mean, ifI would be talking percentage, it would be a high percentage of the increase. You understand? Mr. Korinis: I'll be -- Yes, sir. -- happy to outline some courses and costs. Vice Chair Carollo: Thank you. Questions. Communications and related services. I understand you're IT So it's a big amount. It's $2 million. What composes of communication -related services? Curiosity, knowledge. Mr. Korinis: Sure. It's a number of things. One is it's the Internet -- remember, we provide all the telecommunications for the entire City, so all departments. So all 100 buildings and every staff person that communicates and has access to the Internet, that Inter -- Vice Chair Carollo: Right. Mr. Korinis: -- those Internet bandwidths, those pipelines are provided. Every facility that has a landline connecting it at high speed from the police station to City Hall to MRC (Miami Riverside Center) to every fire station, that's all in there. Over 900 air cards, which are used by the police, the fire facilities, et cetera. Those air cards basically -- while the card itself is very City of Miami Page 39 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 inexpensive, there's typically a $45 a month cost per air card every month. All of the tele -- all of the voice, all the telephone communications between all the buildings, long distance, out to the rest of the world, add that all up and that's two million plus dollars. And that number has actually come down some over the past years as some of the telecommunications costs go down, but our bandwidth typically goes up. When you use the Internet, you want it to be fast and you want it to be there when you need it, so we have raised the amount of bandwidth that we have for use of all the people here in the City to get to the Internet 'cause we do more and more work on the Internet. I do have a specific breakdown if you want to see -- I mean, if you would like more on exactly how much is allocated to which pieces. I mean, the big pieces, the big expenses are the data lines and the voice lines amongst all our facilities and then to AT&T (American Telephone & Telegraph) points of presence as well as the air cards, which is another big expense. Vice Chair Carollo: I don't want to see it right now. However, I do want to see it, you know, later on, you know, prior to the next meeting just for my knowledge so I know what we're spending $2 million on. Moving on to the next thing, it's operating supplies. I see that this year you spent $7, 000 -- $7, 700; yet, you're requesting $46, 000 for operating supplies. So I'm inquiring, once again, why the big jump? Mr. Korinis: I think -- I believe on the -- I'd have to look it up in my list here. I think the operating supplies were a number of what you might call small items in the IT area, things like keyboards, mice, monitors, wiring, those sorts of things. Let me see ifI can pin those out. That's -- Okay. Just to give you -- just to explain in a little more detail. Replacement parts, those are the things I just mentioned, miscellaneous electrical parts, patch cable, surge protectors, monitors, batteries. That was 28,000 of the 48. Consumable forms, W-2 forms, operational licenses, occupational licenses, mailers, et cetera. Consumables are in there for about $10,000, you know, paper. Vice Chair Carollo: No. I see what's in there. Mr. Korinis: Yeah. Vice Chair Carollo: I have the budget. I'm just wondering why in operating supplies, you went from $7,000 to $46,000. Or you're asking $46,000 when this year, you only spent $7,000. I see what the rest of the stuff are. Mr. Korinis: I think -- I'm looking -- Vice Chair Carollo: I mean, it's - Mr. Korinis: -- back several years and in the -- in our actual budget for this past year, we had $57, 000 budgeted. Now due to the budget cut -- due to our trying to be -- reduce spending and spend as little as possible, we did -- we used up everything in the inventory. We didn't spend -- to replenish things in the inventory, like some of those items that I just mentioned, and that's why we only spent about 9 or $10,000. So the number 46,000 is, in fact, less than what we had budgeted for this year, but certainly much more than what we spent, but part of it is because we, in fact, didn't replace items in inventory. These are things that we typically provide to, again, all the agencies that need these sort of things, everybody that has a computer, laptop, whatever. Vice Chair Carollo: Mr. Manager, as far as the budget for 2010 -- how could I say this diplomatically or how can I ask this diplomatically? Mr. Migoya: Go ahead. I'm not used to a diplomat. Vice Chair Carollo: You know, 'cause I have a feeling that a lot of department heads are going to come and say well, we actually budgeted this amount for this year; however, we spent "X" City of Miami Page 40 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 amount, which is a lot less. He budgeted for operating supplies, 57,500, yet spent 7,700, and now he's requesting 46,000 for next year based on that the budget for 2010 was 57,000 and it's actually reduced. As far as the budgeted amounts for 2010, I think we have consistently seen that the numbers did not come in accurate or how would you -- Mr. Migoya: Well, I can't speak to the budget for 2010, but what I can speak to -- 'cause as you know, I have chosen to ignore the 2010 budget, but what you don't have here, and we can probably provide for you, is the historical expenditures from a year-to-year basis. What you will find, which is a common theme from department to department, is that we did tighten up on all kinds of office supplies and different operating supplies, and you could only do that for so long and some of that's going to come back. Now the idea is how do you stretch the rubber band and bring it back slowly so you don't snap. And so -- andl can't remember exactly what we did, but I did look at the historicals with every one of the departments, including IT, and allowed them to bring a little more of that operating supplies because, again, we can't expect them to be at that 7,000. Same thing with training. When you look at $25, 000 number, you're talking about ten or twelve people being trained maybe 15 at most. So it's -- and you can say, yeah, you can go one year without training anybody, but when you're dealing with something like IT, you have to have some degree of training to keep people on board. So we had to give some of that back, just like we do on capital expenditures where we didn't do anything last year and we're trying to catch up right now, so we're trying to do that without going crazy and going overboard so -- Vice Chair Carollo: And actually, I agree with you, just, you know, it's not 7,000 to 20,000; from 7,000 to 46,000. And you'll see, there's -- it's consistently like that, not just IT; some of the departments and so forth. So although I agree with you, I don't know, I think the -- that rubber band getting back to normal is -- Mr. Migoya: Well, if you look at the historical -- here's the historicals for office supplies. In 2007 through 2009, it was 86,000, 42,000 and 36,000 so -- Vice Chair Carollo: Now those were years that there was more income coming in at the same time, correct? Mr. Migoya: Yeah, but you know -- Vice Chair Carollo: In other words, there was a lot more expenditures -- Mr. Migoya: Yeah, but the kind of IT -- Vice Chair Carollo: -- by department. Mr. Migoya: -- supplies -- and they're probably not related to income. They're really related to the work that they're doing, so the 46 is right in the middle of that. It's not on the high side. It's not the lowest, but it's close to the lowest. Vice Chair Carollo: I'll take a look at the historical numbers. At the same time, keeping in mind that those years, you know, it seems like all departments were able to spend a little more because we had a little more. But I'll take a look at that prior to the September 27 meeting. And that's all I have for IT. Mr. Migoya: Thank you. Vice Chair Carollo: Anyone before I continue? Chair Sarnoff No. Keep going. City of Miami Page 41 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Suarez: Are you still on IT? Chair Sarnofff. No. I think he just finished -- Vice Chair Carollo: No. Hold on, hold on. I think Commissioner Suarez has something for IT. Commissioner Suarez: Yes. Chair Sarnofff. Oh, I'm sorry. Commissioner Suarez: Yes. Thank you, Mr. Chairman. Mr. Korinis, we met a while back andl asked for a detailed breakdown of the budget for your department. I never got it. I ended up getting recently from Mirtha an actual breakdown of -- and my issue is again -- I'm not a specialist in IT either, as the Vice Chairman has said -- stated. My issue has to do with, you know, the sum of the salaries and just the positions. And -- I mean, I'm looking at the breakdown of every single -- it's an expen -- a total expenditure of $6.5 million, and let me just read out -- I don't know who these people are because there's no names. These are just numbers. I mean, there's an assistant -- two assistant directors, one at 113, another one at 135; a computer training specialist at 76. That's their salary, by the way. It doesn't include, you know, obviously health care and all the other stuff. There's a telecommunication processing aid at fifty five nine; a programmer -- programmer -- I call him programmer number 1 -- at 73,000; a network administrator at 103,000; a Web administrator -- I'm sorry, I missed one; information technology tech at 44; a Web administrator at 79. Another information technology tech at 42; a help desk supervisor at $73, 000; a project Manager, IT, $86, 239; a database specialist, $76, 000; information technology tech, also another one, 54,000; database manager 80,000; computer op, 53,000; information technology tech number 3, 71,000; Web developer number 2, 63,000; senior programmer as opposed to the other programmer, 80,000; IT project manager, 119,000; system analyst -- senior system analyst, 118,000; information technology tech, I guess number 2, 61,000; information technology tech number 1, 42,000; graphic information system analyst, 93,000; graphic information system developer, I guess, 73,000; information technology tech number I don't know what, 37, 000; another information technology tech for 49,000; another information technology tech for 66,000; a project manager for 90 -- another project manager for IT, 94,000; a contract compliance analyst for 60,000; a project design analyst for 62,000; a system analyst -- another -- a systems analyst -- senior analyst for 95,000; another Web developer for 91,000; you know, a program -- another programmer for 78,000; another senior programmer for 86,000; another information technology tech at 42; another programmer at 82; another programmer at 78; a project manager -- another project manager at 84; another information technology tech at 67; another systems anal -- another senior systems analyst at 100 -- $100,323; a database specialist at 76,000; information technology tech, 54; systems programmer, 102, 000. This is another person. Oracle systems administrator, 86,000; another programmer at 78,000; a computer op -- and I'm sorry, guys; I'm not trying to drive you guys crazy -- Vice Chair Carollo: Keep going. Commissioner Suarez: -- but I'm just trying to make a point here. Chair Sarnofff. Well, you're -- let me short trip you, and I'm not trying to cut you off. But your -- I guess your point you're making is these are high paid employees, correct? Commissioner Suarez: And you know, I'm not an expert. I'm not a technology expert, like the Vice Chairman says, but there seems to be -- you know, when you -- it's very hard when you're looking at numbers to draw conclusions, okay. But when you see $6.5 million in salaries in a department and you start to go through the detail, which I didn't get until recently, and you start to see what it's -- what appears to be -- I don't even know how to say it 'cause I don't have the City of Miami Page 42 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 expertise to make the statement I'm about to make, but what appears to be a lot of duplication of effort, you know, and people that are making a lot of money. You know, my wonder is -- I mean, there's still more by the way. I stopped. Chair Sarnofff. Well, here's the question we have to ask 'cause -- Commissioner Suarez: You know, telecommunications technician, 63; information technology tech, 49; another senior systems analyst, 115; a systems software manager at 120; a programmer Chair Sarnofff. Well, let's ask the question -- Commissioner Suarez: -- at 73. Chair Sarnofff. Wait, wait. Stop, stop, stop. Let's ask the question to the Manager 'cause he's the person who manages the City. Have you gone through his department; have you done an analysis for what the private sector would pay for those type of positions and what we are paying for those positions? Have you equally done an analysis as for the quantity of people he's paying? Mr. Migoya: If we -- if you ask me if we've done one for every employee, we have not. We have done some analysis as relates to some of those systems analysts and what we're paying versus the market, from an -- from a pri -- and frankly, in many cases we're paying at or below what the market is. I can tell you that historical expenditures -- and what I'm struggling with is where you're coming with the six and a half million dollars. Does that include all the FICA (Federal Insurance Contribution Act) and everything? Is that what the six and a half -- Commissioner Suarez: Yeah. Mr. Migoya: -- million dollars is? Commissioner Suarez: That includes everything. I'm -- I was just reading the salary portion of it. But that includes -- this is what -- Mr. Migoya: Salaries, other salaries, FICA. Commissioner Suarez: That -- the 6.5 includes Medicare, Social Security -- Mr. Migoya: Right, okay. Commissioner Suarez: -- the regular wages. Mr. Migoya: That number after the salary reductions is $6 million. But just to give you the -- just the regular salaries number -- Commissioner Suarez: And this might be dated 'cause I don't think this is for fiscal year 2011, which is what we were talking about off to the side. This is for fiscal year 2010. Mr. Migoya: Okay. So let me just tell you what regular salaries have been historically. In 2007, it was $6.4 million; 2008, it was $6 million. Then it went up to 6.3. In 2010, 5.7, and the proposed 2011 is 5.3. So we've been chopping at that number. We have asked Peter to reduce some of that staff this year. In addition to that -- in this number that we got incorporated in here includes some of those extra systems consultants that we talked about previously, that 800, 000. Sso this includes some reduction of staff, reductions of salaries, plus the incremental Oracle systems analysts that are coming in here. So if you look at the overall number, this number has City of Miami Page 43 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 been reduced probably in over a million dollars on an annual basis. Commissioner Suarez: And again, I have no way of knowing whether we're at the optimal level of efficiency because I'm not an expert, so I don't know. I just know, going back to the issue that you said, that this is a zero sum game. So everywhere, you know -- the way I look at it is any time we're trimming, we're using it for something else or we're talking about a Fire -Rescue, you know -- not the Fire -Rescue -- I'm tired already -- the garage fee increase and we're trying to find funds for that, and you know, and I see all these -- Mr. Korinis: Commissioner, may I address a couple of your points? Commissioner Suarez: Of course, please. I would like you to, yes. Mr. Korinis: IffI may. A couple of things I think will help explain some of that. One is, we had - - some of those salaries that you saw were perhaps looked high for the job, what appeared to be the job. Those folks may have been here 18, 20, 25 years so they're very senior people. They've gone through a lot of years here and their salary has continued to move up on that time. Commissioner Suarez: Let me just stop you there. Mr. Korinis: Yes, sir. Commissioner Suarez: I think I'm making two points. One point is the salaries. And really wasn't even so much making it a point of the salaries as I was highlighting the number of people that have the same -- Mr. Korinis: Well -- Commissioner Suarez: -- category of job 'cause I don't even know who they are. This is all numbers here. This is all -- this is not by names or anything like that, so I have no idea who I'm - - and I'm not trying to pick on anybody. But I'm trying to highlight the number of people and the cost of each person. Mr. Korinis: HI may. Commissioner Suarez: Sure. Mr. Korinis: Let me make just a couple more points. Second point is that these are highly technical positions. They oftentimes needs certifications that take years and costs to get that certification and they need experience so they, in fact, command a higher salary. We have done - - the HR Department has done salary comparabilities [sic]. We do them on a regular basis. As the Manager said, if you forget the longevity aspect of some of the people that have been here very long, which may be higher than you would expect, the comparability with the private sector, in fact, we are below the norm. And I'll give you a couple of examples where we have tried to hire people. One of them is the one you mentioned, which is the Oracle system administrator. We're paying $87, 000, I believe, somewhere in that area. We have lost three people and couldn't hire some people because we couldn't pay over 99, which was the top of the salary for that range. Database administrators, very, very technical position. They're in great demand and you have to pay the market rate to get them. So -- now your -- to your last point, which is -- Commissioner Suarez: Okay. Mr. Korinis: -- why do we -- why do you feel that there are so many of these people in a position, and the answer is the amount of equipment that we support. So for example, if you look at IT technicians, we have IT Technician I, II, and III, it's a sequence. They support all of the hardware running in the City. So we have 2,500 computers, we have all the network equipment, City of Miami Page 44 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 we have all the software that the software programmers and senior systems analysts are supporting. We have well over 60 systems that they have to be conversant in and know a variety of languages. Sso I'd be happy to show you how they fit on the org (organization) chart so that you can see, in fact, what their duties are. I've been getting complaints lately from our help desk because, in fact, the number of people we have on the help desk is not quite able to handle the workload. So I'll go over that and show you how we come up with our metric. Commissioner Suarez: Okay. I agree -- I think I agree with your first statement, which is that, you know, IT is a field right now where -- that is in high demand and where people are highly skilled and they're getting well paid. I just wanted to make sure -- I don't have the expertise, I don't think the Vice Chairman has the expertise to know and we're relying on your expertise -- Mr. Korinis: Let me -- Commissioner Suarez: -- supervised, of course, by the City Manager, in determining whether all these employees are necessary. Mr. Korinis: Let me give you another metric. One of the metrics that's used and is available throughout the industry is the number of IT people you have per employee or a metric like that. So there's that one. What's the IT cost compared to total budget of the organization and what's the IT cost per person. Those three metrics are relatively comparable among both commercial and public sector. Commissioner Suarez: Can you send us that? Mr. Korinis: And I can tell you that the last time I looked at those -- now I haven't looked after the economic turn down 'cause I don't have the numbers, but we were -- we, the City ofMiami, were below the government average and that was below the commercial average. So we were well down probably in that first (UNINTELLIGIBLE) of costs in each of those three categories, including government. So even compared to our government peers, we are not overly manned or have excessive costs. Now, again, I don't have that in for 2009 or for 2010 'cause I just don't have those numbers right now. I'd love to get them and show them to you ifI had them. Mr. Migoya: Commissioner, one more thing. Commissioner Suarez: I would appreciate it. Mr. Migoya: I'm not an IT expert either. Actually, I think you will find probably in this room, outside of Peter, nobody really is. So the only way I know how to deal with this is the constant conversations I have with him, the times I ask him about thinking outside of the box, how to do things differently. Every time we lose somebody, it's how do we not replace them, and that's the way we're been going about it, and that's how we've been able to get the expense reductions. So, you know, obviously, we have to defer to him from the expertise standpoint, but we're also pushing him from a standpoint of trying to figure out how to deal with the least amount of resources available. Commissioner Suarez: But I think it's also significant too that your proposed budget number for salaries is about 20 percent less than last year, right? Mr. Migoya: That's correct. Commissioner Suarez: I think that's a significant -- Mr. Migoya: Including -- City ofMiami Page 45 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Suarez: -- improvement. Mr. Migoya: -- incremental consultants that were previously being paid through capitalization. Chair Sarnoff Mr. Manager, do you consider yourself an expert on personnel? Mr. Migoya: I consider myself an expert in people. Chair Sarnoff Right. Mr. Migoya: So I -- Chair Sarnoff You have managed a bank. Mr. Migoya: -- what I do is I manage and so -- you manage people, you manage people, so it's not about the expertise -- Chair Sarnoff I understand. Mr. Migoya: -- of what they do. Chair Sarnoff So you're an expert and you've done it at a higher level than the City Manager job. Would you hire Mr. Korinis today if he was applying? Mr. Migoya: That's an interesting question because, again, he's an IT guy and that's probably the weakest part of my expertise. Chair Sarnoff I understand, but you're -- Mr. Migoya: But I -- you know, I've gotten to the point that I've -- we've been able to develop a good rapport andl understand exactly where he's at. And slowly but surely I'm starting to understand how he's managed so I feel a lot more comfortable as to the job he's doing. Chair Sarnoff You have confidence in Mr. Korinis? Mr. Migoya: I'm fairly confident in Mr. Korinis. Chair Sarnoff Okay. So you don't have the expertise to even answer us, but you are an expert in people and you are -- Mr. Migoya: IffI didn't have confidence in Mr. Korinis, Mr. Korinis wouldn't be sitting here -- Chair Sarnoff Understood. Mr. Migoya: -- or standing here at especially -- Chair Sarnoff I understand. Thank you. Yeah. And when we get to midnight, they have to take a break because they have to reset the computer. So let's continue. So we're done with IT? All right, let's move on. Vice Chair Carollo: Can we talk about the NDAs (Nondepartmental Accounts)? Commissioner Gort: Who? Chair Sarnoff Nondepartmental Accounts. NDA, I think he said. City of Miami Page 46 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: First of all, to begin, I think when we had a recess, a break, we spoke about that my detail didn't tap to the actual amount, and you stated why, andl guess we'll work on it before the next meeting. Ms. Dziedzic: Yes, sir. Vice Chair Carollo: Okay. With that said, I have here $200,000 going to legislative liaison, and the description is miscellaneous support for state and federal lobbying. So we're paying $200, 000 for lobbying fees, correct? Ms. Dziedzic: Yes. Those are our contracts for our lobbyists, our state and local lobbyists. Vice Chair Carollo: How many lobbyists do we have? And could you give me the breakdown of what each of them get paid? Thank you. Mr. Migoya: I can tell you that when I first got here in February, not from my doing, but we were in the process of not only reducing the number of lobbyists, but also reducing what we were paying the lobbyists substantially. We're in the process of not only getting you that information, but we're trying to also track the historical expenses that we've had for lobbyists. So we'll give you the whole breakdown here in a second. Vice Chair Carollo: Thank you, Mr. Manager. In the meantime, can I jump to another one so we -- Ms. Dziedzic: Absolutely. Vice Chair Carollo: -- keep it moving? I also noticed that you have promotional activities of $25, 000 that was not budgeted in the past, so it's a new item. It seems like, you know, we have enough advertisement in different departments and so forth. How come --? What's this new promotional activity as a new expense of $25, 000 or at least proposed? Ms. Dziedzic: This year we covered the advertisement for the special elections, which were around the tune of 28, 000, $30,000, because those were not budgeted in the City Clerk's office. So we're making some allocation in case items of that nature pop up again. Vice Chair Carollo: We're expecting -- hold on -- a new special election or something? Silence. Okay. So -- okay. Commissioner Gort: I have a question. The election that we have on this year -- Ms. Dziedzic: Yes, sir. Commissioner Gort: -- 2010, the general election, even if we didn't have anyone running in the City, still we had -- they would have to be set up? Priscilla A. Thompson (City Clerk): I'm sorry. Can you repeat that? Commissioner Gort: Okay. The expenditure -- I saw somewhere, I think, an allocation of $300,000 for the election. Ms. Thompson: That's correct. Commissioner Gort: Do we -- even though it's a County election and they got to go up anyway and put all the machineries and all that, we have to pay 300,000? City of Miami Page 47 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Thompson: IffI can just help you to recollect. Commissioner Gort: Okay. Ms. Thompson: We are piggybacking with the County on their November 2 election. Commissioner Gort: Right. Ms. Thompson: What we had to budget $300, 000 for is the runoff election, if we have a runoff okay. If you can remember, our total cost for the special election and the runoff this last time with all our elections are almost $1.5 million. So it is very expensive to run a runoff election. Also remember that we have the runoff elections in two districts. That election cost may decline based upon if there's one runoff or no runoffs. But that's for the runoff itself. Commissioner Gort: Okay. Thank you. Vice Chair Carollo: So in essence, if we have a runoff or a special election, this 25,000 is for advertisement? Ms. Dziedzic: Correct. Vice Chair Carollo: And if we do not have a runoff which I trust my colleagues will not have a runoff what happens to this 25,000? Ms. Dziedzic: It will be savings which can be allocated for other needs or can be deducted from the budget. Vice Chair Carollo: So I should keep an eye on this just in case, okay. Lobbying fees, no, not yet? Mr. Migoya: We're still working, so keep going. Vice Chair Carollo: Okay. Reserve for emergencies, emergency support for City Manager, 264,900, so 265, 000. When you say reserve for emergencies, what are we discussing? Ms. Dziedzic: Basically, these are consultants that the Manager may contract for special type of studies, like the IT, outside studies; PFM (Public Financial Management), the study that they did for reductions in salaries. Vice Chair Carollo: I think 265,000 is a lot. Ms. Dziedzic: I think PFM was 125, 000. Vice Chair Carollo: Right, but we were in a unusual circumstance. I mean, that doesn't mean we will not be in an unusual circumstance next year, but still. Even -- and what did you say, 125,000? Ms. Dziedzic: I think PFM was 125, 000, ifI remember correctly. Vice Chair Carollo: But we are budgeting 265, 000, and it's, you know, outside of the Manager's budget. The Manager's budget is something else we'll get into. Ms. Dziedzic: Correct. City of Miami Page 48 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: But -- Mr. Migoya: Besides the 125, there's a few other things that were spent in there. It wasn't just -- Ms. Dziedzic: Yes. You have other consultants. I don't have -- Mr. Migoya: Can you go into it? Ms. Dziedzic: Let me -- Commissioner Suarez: Mr. Chairman. Chair Sarnoff Yes, sir. Commissioner Suarez: I have another line item issue question on NDA. I would like to sit with the City Attorney on the increase in outside legal fees, outside legal fees from 600,000 to 2 million and get a breakdown on why -- andl mean, I can imagine why, but I'd like to get a breakdown and I'd like to discuss it. You've been extremely busy, we've been extremely busy. We haven't even seen each other in I don't even know how long andl know how busy you've been. And there's just so many moving parts that have been going on in the last few weeks that we're trying to keep up with. But I'd like to at some point before we vote on this, sit down with you and get an explanation and understanding of that 'cause it's something that I've always expressed in my prior conversations with you as a big concern for me. Julie O. Bru (City Attorney): I will make sure that each of you get the most current projected expenditures for outside counsel for next fiscal year, andl will attempt to meet with you each of you at your convenience. But you'll have a breakdown with a -- you know, with each case and the status of the case and why we're projecting that expenditure now. Having said that, you know, we were requesting budgeting that amount just to be very safe, but I can tell you that I'm going to try very, very hard to reduce some of those significantly. Andl think I've touched base with some of you already on some of those cases. I don't want to go into it on the record here now, but there's some cases that I'm using some strategies to reduce those costs, and I'll discuss those with you individually. Commissioner Suarez: And without getting into too much of the detail here, we're increasing the budget almost more than three fold you know, from 600 to 2 million, so there is a good possibility that we could save substantial dollars there if we come in -- the Chairman is saying no, no way. Chair Sarnoff I think she under -budgeted. I think she under -budgeted. Ms. Bru: The 600 is not an accurate reflection of -- Commissioner Suarez: No, no, no. Ms. Bru: -- what we spent last year. Chair Sarnoff I think you should have a private conversation. Commissioner Suarez: Okay. Ms. Bru: Yeah. Commissioner Suarez: We'll talk about it. City of Miami Page 49 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Bru: Yeah. Mr. Migoya: Can I -- you want -- would you like to discuss the lobbyists? Chair Sarnoff Yeah. Let's go back to lobbyists. Mr. Migoya: In 2009, we spent $848,000 in lobbyists, so we're slightly higher than what we're discussing at this point. Commissioner Gort: How much was that again? Chair Sarnoff Eight hundred forty-eight thousand. Mr. Migoya: Eight hundred and forty-eight thousand and forty dollars. In 2010, it's $279,000 and that is slightly higher because, like I said, we were -- we spent at a higher level. Okay. We spent a little more because of the -- because obviously we started at a higher level, but the -- that's how we got from 279, we're getting down to $200,000, which we're expecting. At this point, they're requesting closer to 250, but we're going to keep it at $200,000 as a maximum. Chair Sarnoff These are monthly? Mr. Migoya: And here in front of you -- Vice Chair Carollo: Yeah. These are monthly. Commissioner Gort: Yeah. Mr. Migoya: These are monthly fees. Vice Chair Carollo: These are monthly fees. Chair Sarnoff I got into the wrong business. Vice Chair Carollo: And Mr. Manager, for 2011, you're saying you're trying to keep it at 200. Which are the lobbyists we're using because I was just told that we no longer we have this person or this -- or that person, so who really is -- who really -- who is our lobbyist at the present time? Who are our lobbyists at the present time? I mean, we're paying 200 and some -- Mr. Migoya: The ones to the right on the -- are the current lobbyists that we've been using for 2010. We are in the process of evaluating and we have yet to evaluate who we're going to keep for 2011 and at what rates we're going to keep for 2011, but the number will be no more than $200,000. Chair Sarnoff How much? Mr. Migoya: Two hundred thousand. Chair Sarnoff Two hundred thousand. Mr. Migoya: For the entire year. Vice Chair Carollo: And you're saying that as far as who will be our lobbyist, that has yet to be determined? Mr. Migoya: It's in the process -- we're in the process of looking at the effectiveness of what City of Miami Page 50 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 happened this past year. One of the things we did this year was track what the -- Vice Chair Carollo: Right. Mr. Migoya: -- what they were working on and their effectiveness, and based on that we're going to work on the recommendations as to who we use for the following year. And we will not only work with the Mayor, but each and every one of you to look at those numbers individually in figuring out what that looks like. But the budget again, I'm not motivated to go beyond $200,000. Vice Chair Carollo: I'm sorry, you're not motivated to? Mr. Migoya: Go beyond $200,000. Vice Chair Carollo: Neither am I. Chair Sarnoff Well, you got to get an ROI (Return On Investment). You got to get a return on your investment. Mr. Migoya: That's what we're -- Chair Sarnoff Two hundred's got to generate you six or two hundred's got to generate you a million. It's got to do something. Mr. Migoya: That's -- for the first time this year we started tracking the actual return on investments. Vice Chair Carollo: And would it be possible to look at that or do you think you'll have sufficient numbers or actual deliverables by the September 27 meeting? Mr. Migoya: Well, remember something, the September 27 is really this coming Friday or Monday at the latest, so I don't know that we'll be able to get to that kind of detail by then. We have a lot of other things to do, but I will -- I'm having these guys work on it. Chair Sarnoff Each lobbyist will be able to tell you in one phone call what they derived you. That isn't -- Mr. Migoya: We have that information. Chair Sarnoff Okay. Mr. Migoya: We have that information already. Vice Chair Carollo: So would -- I mean, would it be too much then to provide it to us? Mr. Migoya: Well, okay. If you want to do it at the next meeting on the 27th here, we can do that. I mean -- Vice Chair Carollo: No, no, no, no, no, no, no, no, no. Mr. Migoya: -- the idea would be -- my intent is to try to get with each and every one of you individually. Vice Chair Carollo: Yeah. What that's -- I'm not saying to bring it to this meeting -- I'm sorry, to the 27th meeting. I'm saying if we can meet prior to the December [sic] 27 meeting -- City of Miami Page 51 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: I'm sure we -- Vice Chair Carollo: I'm sorry, September 27 meeting, to -- Mr. Migoya: -- can. Vice Chair Carollo: -- obtain the information so that I have that information prior to making this vote on the whole budget. Mr. Migoya: Gotcha. Vice Chair Carollo: That was my intention. And actually, who is our lobbyist right now? I'm counting, if this is correct, one, two, three, four, five, six, seven. Is that correct, seven lobbyists? Mr. Migoya: Looks like it. Vice Chair Carollo: Okay. Commissioner Gort: You have four at federal level and then the other ones at state level. Mr. Migoya: No, there are actually three federals. No, two federals. Vice Chair Carollo: (UNINTET,T IGIBT ,F) federal. Chair Sarnoff (UNINTET,T IGIBT,F) Akerman Senterfitt. Vice Chair Carollo: Okay. The reserve for emergencies, again, Mr. Manager, do you feel strongly about that amount? Mr. Migoya: I'm sorry. Vice Chair Carollo: The reserve for emergencies, do you feel strongly about that amount? Mr. Migoya: Reserve for emergencies. Where are we? Vice Chair Carollo: We're in NDAs. You have budgeted 200 -- approximately $265, 000 for you in case of some emergency. Mr. Migoya: You know, the thing is that in the short period that I've been here, a study here, a study there, you know, there's one study that I'm actually looking at right now for IT is going to cost by itself that we've discussed -- that one alone is $30,000. So to put any less than 265, I would get nervous that we could blow over, especially with all the special situations we've got going. We don't know what the expertise we're going to need over the next year with all the labor issues we got and everything else we've got going so -- sorry? Vice Chair Carollo: Okay. Mr. Migoya: So -- Vice Chair Carollo: I'm sure we'll discuss it more prior to the 27 -- Mr. Migoya: Oh, I'm sure we will. Vice Chair Carollo: -- (UNINTET,TIGIBT,F). Special assessment district taxes. City of Miami Page 52 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: Would you like some coffee, Mr. Carollo? Vice Chair Carollo: I'm sorry? Mr. Migoya: Would you like some coffee? Vice Chair Carollo: Coffee? I don't drink coffee. Mr. Migoya: Okay. Vice Chair Carollo: You know that. Anyways, special assessment district taxes, $10,000. What's that about? Ms. Dziedzic: There are some City properties that we have to pay special assessments on an annual basis for. I think Parks has that list of properties. Vice Chair Carollo: And to who, to the County? Ms. Dziedzic: To the County. Commissioner Gort: County. Chair Sarnoff I'm sorry, but those are the properties that we use that we derive income from? Is that what that is? Ms. Dziedzic: I'm not quite sure. I'll have to defer to Mr. Burkeen. Chair Sarnoff Not that important, but -- like, for instance, over here we may have some deferred taxes we have to pay. Is that what we're talking about? Mr. Migoya: I don't know. Let's get Ernest in here. Chair Sarnoff Madeline, is that what we're talking about? Madeline Valdes (Interim Director, Public Facilities): This special taxing district is imposed by the County for roving patrols, for the Metromover when it was built. City property is not exempt from taxation, especially the special assessments from the County. Chair Sarnoff Wow, I didn't know that. Commissioner Gort: How about we start charging. Chair Sarnoff So we pay the County to police certain Metromovers places? Ms. Valdes: When the Metromover was built -- Chair Sarnoff Right. Ms. Valdes: -- the property that surround it, a lot of them were City -owned so we had to pay for a portion of that assessment. For the special roving patrol in certain districts, we pay for that special assessment. City property is not exempt. Chair Sarnoff I didn't know that. City of Miami Page 53 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: You okay, Mr. Chairman? Chair Sarnoft Oh, I'm sorry. Yeah. Vice Chair Carollo: Continuing with NDA, Civilian Investigative Panel, that was one of the agencies that had a delayed audit, that I don't think even ever responded to us. But anyways, I've seen their budget from previous years, and we're approving 464 again. Do they have a budget on how they're going to spend that 464? Is it going to be the same as last year? Mr. Migoya: That was a chartered office so we actually reduced the budget last year to 464 from -- Ms. Dziedzic: By half. Mr. Migoya: By half, right? Ms. Dziedzic: By half. Mr. Migoya: -- so -- and frankly, with the situation that we're in right now, we felt that it was best to leave them at that same level because of the big reduction we did to them in the previous year. And frankly, they're down to three employees as you heard one of the people say and with all of the issues we got today, we felt it was the right number. And frank -- that is a charter office that (UNINTET,TIGIBT,F) deal with. Vice Chair Carollo: Can we have them provide us a budget on how they're going to spend the 464? It shouldn't be hard. I would think -- Mr. Migoya: Well, they have --- Vice Chair Carollo: -- -- it's going to be similar to -- Chair Sarnoff They -- Mr. Migoya: -- to provide us a budget for you to approve. Vice Chair Carollo: Okay. Well, it's in NDA so, you know -- Ms. Dziedzic: As -- Vice Chair Carollo: Like this is in the detail. If you go into our actual budget that we're going to approve, I don't think it's there. Ms. Dziedzic: Yes. Vice Chair Carollo: It is there? Ms. Dziedzic: It is. It's aid to private organizations. Vice Chair Carollo: Aid to private organization. Speaking about aid to private organization, it's $1.1 million approximately. Do you know what makes that up? Ms. Dziedzic: Absolutely. Vice Chair Carollo: And there's a reason why I'm asking that. City of Miami Page 54 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: Is this when I'm going to give my answer on the 1.1 that we were discussing earlier? Vice Chair Carollo: Hey, you remember. You have a good memory. Mr. Migoya: Yes, I do. Ms. Dziedzic: Four hundred and sixty-four thousand is for Civilian Investigative Panel -- Vice Chair Carollo: Right. Ms. Dziedzic: -- 250,000 is the 20 percent parking surcharge contribution to the BID (Business Improvement District), to the Coconut Grove BID. Vice Chair Carollo: Right. And 401? Ms. Dziedzic: 401 is no longer -- Vice Chair Carollo: Well, it's still showing in our budget. Ms. Dziedzic: It's showing there. The 401 was for Gusman. Vice Chair Carollo: So it's still showing there, so we need to reduce that 400, 000. Ms. Dziedzic: That will be modified for the 27th meeting. Mr. Migoya: That's actually in the modification. Chair Sarnoff That means we can't use that for -- Mr. Migoya: We're using that for -- Commissioner Gort: Something else, yes. Mr. Migoya: -- moving to capital expenditures or whatever else we can to help us with the $6 million that we're short, a gap. Commissioner Suarez: So 400 from that, 330 from not having runoffs; we're at 700, right? Chair Sarnoff No. How do you know you're not going to have runoffs? Mr. Migoya: We're at 400. Commissioner Suarez: I know these guys aren't going to have runoffs. Chair Sarnoff No. They don't deserve runoffs, so I agree, but -- Vice Chair Carollo: So there's 400, you know, that we can use. And the reason I'm pointing it out -- and again, Mr. Manager, I'm working with what has been given to me and so forth. It's still showing there in that, you know -- Mr. Migoya: Well, because you have -- Vice Chair Carollo: -- grouped in that 1.1 million. City of Miami Page 55 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: -- a printout and frankly, from the briefings that we did last week is how that 400,000 -- Ms. Dziedzic: Has been -- Mr. Migoya: -- popped out. Ms. Dziedzic: Right. Mr. Migoya: So -- Ms. Dziedzic: The legislation was already prepared and -- Vice Chair Carollo: That last week was just this Saturday so it wasn't too long ago. Mr. Migoya: I thought we discussed that on Saturday because I thought I briefed you all on that item. Vice Chair Carollo: No, 'cause it took me about 30 minutes or 40 minutes to figure out what was that 1.1 million 'cause it's grouped in with three different items so I had to figure it out why it was grouped there and why it was showing there and -- Mr. Migoya: You should have asked me. I know (UNINTELLIGIBLE) on Saturday but -- Vice Chair Carollo: Well, it wasn't Saturday. It was sometime today when I figured it out. Anyways, if you wouldn't have shown it there, like it shouldn't have been there, then I wouldn't have had to do that. But anyways, we'll continue. Commissioner Gort: May I ask you a question? How many more of these items do we have that are listed here but they no longer are? Mr. Migoya: How many more items do we have where? Commissioner Gort: Like this 401 that we have listed here but they're no longer on. Ms. Dziedzic: Modifications -- Commissioner Gort: Modifications. Ms. Dziedzic: We did a minor modification to the City Manager's office. Mr. Migoya: We -- modification -- Vice Chair Carollo: It wasn't -- hey -- Commissioner Gort: It wasn't his salary. Vice Chair Carollo: -- minor now. That was $300,000 from your e-mail. Ms. Dziedzic: It's actually like 250. (UNINTET,T IGIBT ,F) something that needs to be -- Vice Chair Carollo: Okay. Ms. Dziedzic: -- corrected. City of Miami Page 56 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: That -- Ms. Dziedzic: Those are the only -- Mr. Migoya: Those are the only two that we have at this point. Vice Chair Carollo: For the person who came and thought that, you know, we had a party Saturday, that was $250, 000 from a quick talk with the Manager as far as salaries in his office and so forth so -- Mr. Migoya: That's part of Saturday's work. Vice Chair Carollo: Yeah. That's part of Saturday's work which is -- I don't know. You sent me an e-mail that it was about 300, 000, but you're saying it's more like 250? Ms. Dziedzic: Right. In reviewing -- again, there's one position that needs to be retained, so it'll be more like 250, 000. Vice Chair Carollo: Andl sent you an e-mail when you sent me some of that that I wanted to discuss it further. I guess -- you know, I didn't bother you. I know you're working hard and so forth so -- but we need to follow-up prior to September 27. Mr. Migoya: Commissioner Gort, we may find some other things, so that's why it's all part of the modification that goes in the 27th. Commissioner Gort: Thank you. Chair Sarnoff. So just so I understand. You guys have found a reduction in your office of $250,000 in salaries? Mr. Migoya: Which is basically the credits on the CRA (Community Redevelopment Agency) people that we needed to move. Vice Chair Carollo: However, we put in NDA emergency for 265 so we're still a -- Mr. Migoya: No, no. Vice Chair Carollo: -- wash. Ms. Thompson: Excuse me, Chair. Mr. Migoya: No, no. It's not a wash. Ms. Thompson: Excuse me, Chair. It's the bewitching hour so we have -- the machine shut down. We've got to now convert. Just give us about 30 seconds. Mr. Migoya: Thirty seconds? [Later... Chair Sarnoff. All right, we're back on the record. Vice Chair is recognized for the record. Vice Chair Carollo: Thank you, Mr. Chairman. I think that was my last NDA; I just want to make sure. Do you have something, Commissioner Suarez? City of Miami Page 57 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Suarez: I have one last NDA thing. I just wanted the Manager to put on the record -- we had talked about in our briefing the salary attrition budget, which is essentially an assumption. And I just want you to state on the record that you feel very confident with that assumption because it's a very large assumption. It's a $5 million assumption. Mr. Migoya: This year we had $5 million attrition rate and we hit the $5 million. And we're feeling pretty comfortable that we should be able to do the same next year, yes. Chair Sarnoff Okay. Vice Chair is recognized again. Vice Chair Carollo: Thank you. From DNA [sic] -- and by the way, there's a few other little things that I'm not going to mention now. I'll just -- you know, before the 27th, we'll discuss. Ms. Dziedzic: Sure. Vice Chair Carollo: In the transfers in, I think the two things that we need to discuss -- andl think the Manager alluded to possibly one of them, you know, having an issue is the two CRA funds or monies. Now I just want to verify, first of all, it seems like in the backup you have de -obligated projects andl want to make sure that it's not a de -obligation of projects, that it's actually -- Ms. Dziedzic: Reimbursement -- Vice Chair Carollo: -- reimbursement -- Ms. Dziedzic: -- of expenditures. Vice Chair Carollo: -- of expenditures. Mr. Migoya: Would you like further detail of what those look like? Vice Chair Carollo: Yes, I would. And I'm looking at the detail that I have, so you know -- but yes, I would, and I'll match it with mine. Commissioner Suarez: Mr. Chairman, (UNINTELLIGIBLE) kind of a brief follow-up. I think the issue that I have is -- just dovetailing on his, I would like to see the detail as well, but I think the issue is whether or not the reimbursements are legal. I don't know if that's the direct question that you were going to ask, but I think that the million -dollar question is whether the reimbursements are legal. Mr. Migoya: It's actually a ten million four, but -- Commissioner Suarez: Right. Mr. Migoya: -- close enough. Commissioner Suarez: I'm sorry. Vice Chair Carollo: It's five and five point four, so it's ten point four. Yeah, and that's why I'm making sure that it's not a de -obligation, that it's actually a reimbursement. Chair Sarnoff You're recognized for the record. Mr. Spring: Larry Spring, chief financial officer. It's probably listed as a de -obligation as a description because you are de -obligating projects that are not moving forward on the CRA side. City of Miami Page 58 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 What you're doing, you are reimbursing the City for expenses that we have funded or advanced on behalf of CRA projects, if you will. One of them -- well, there's actually two different situations. The advancement of expenditures was related to the Museum Park park component that is in the Omni CRA. It was in the global agreement. It was intended to always be a CRA project. Vice Chair Carollo: True. Mr. Spring: The City advanced design costs so that we could keep that project moving from a timing standpoint until all of the CRA expansions and things could be settled through the global process or through the appropriate legal process. I believe you'll have -- we have an opinion, an analysis that says we're okay to do that. The other 5.4 million was the City seeking reimbursement for bond payments that we made on behalf of a 1990 CRA bond issuance that was -- that had two primary pledges. The primary pledge was TIF (Tax Increment Fund) revenue from the Omni CRA -- excuse me, Southeast Overtown/Park West CRA, and the backup, the secondary pledge was city-state shared revenue. We have been seeking similar legal opinion so we'll be on absolute terra firma on that one from the bond council that was of record for the bond deal. We were trying to get something for you today, but through some complications we couldn't get it. So tomorrow afternoon, myself City Attorney will be having a conference call with the bond counsel and we'll be able to provide that legal analysis to the Commission. So that one, we were -- you know, we were expecting it to be solid today, but because we want to make sure and give you guys the comfort that you need, we're obtaining that. So for right now, it was left in here for now; we will let you know in -- literally in a day or so. Commissioner Dunn: When you get -- when you're through. Mr. Migoya: So that's why -- Vice Chair Carollo: We could all take turns. I -- Commissioner Dunn: Okay. IffI may? Mr. Migoya: Go ahead, please. Commissioner Dunn: Yeah, because this is certainly one that's dear to me, particularly -- well, to all of those of us who are involved -- really, the whole CRA Board, but especially to the chairs because there's misinformation being spewed that we're actually taking from the CRA when in fact it is a reimbursement. And that's what I was -- information I was given. This is certainly a much better alternative than what was being recommended by some to put the CRA to sleep, period, which I definitely had tremendous issues with and would, you know, have to fight that vehemently. So we have to -- it really helps to educate because you'll have people trying to use this as a political platform when, in fact, it's erroneous and it's really unfortunate when people have the wrong information. So this is not -- I would not in no shape, form, or fashion support anything that would be deemed illegal or unethical, especially when it pertains to a community that's been slighted and we know. We've gone through that and you've been very supportive of that. So I appreciate the explanation. And this is a great -- I'm glad this question was raised. Mr. Spring: Mr. Chair, can I add one more thing? Chair Sarnoff. Abso -- Mr. Spring: With regards to that debt payment, the CRA, starting last fiscal year, started making that debt payment itself out of -- from the TIF revenue, so we've shifted the cost to the CRA, that bond payment. I just wanted to -- City of Miami Page 59 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Suarez: Mr. Chairman. Mr. Spring: -- put that on the record. Chair Sarnoff Southeast Overtown/Park --? Mr. Spring: Southeast Overtown/Park West. Commissioner Suarez: Mr. Chairman. Chair Sarnoff So -- Commissioner Suarez: Mr. Chairman. Chair Sarnoff Yes, sir. Commissioner Suarez: When you're finished. Chair Sarnoff I'm sorry? Oh. So you have been making for the one year or two years? Mr. Spring: One year. Chair Sarnoff All right. One year you've made a payment for the $5 million 1990 bond. Mr. Spring: Well, it was -- I think it was in 19 -- I forget the (UNINTELLIGIBLE) 12: 26: 27 of that issuance right now, sorry. No, no. He's -- I don't know how much the bond issuance was for. I don't remember. I wanted to say it was like $19 million or something like that. Vice Chair Carollo: I'm still waiting for that info. Chair Sarnoff Of which -- Mr. Spring: (UNINTET,TIGIBT,F). Chair Sarnoff -- five million is still left outstanding. Mr. Spring: No. We've paid -- we have made five million -- no, no. Actually, it was less than that. We have made $5.4 million -- we, the City -- of debt payments against that debt. The debt must have been a little bit less than that because we only have -- I think there's three or four years left to pay it off completely. So I'll get you the amount of the debt. Commissioner Dunn: IffI may? I was just giving you information. It was 1990 actually. Mr. Spring: Yeah, 1990 -- Commissioner Dunn: Right. Mr. Spring: -- bond issuance. Commissioner Dunn: Right, when the CRA was just getting started -- Mr. Spring: Correct. Commissioner Dunn: -- and did not have startup funds available. The City fronted the money and so now -- City of Miami Page 60 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Gort: Quite a bit of it). Commissioner Dunn: Yeah. Mr. Spring: Right. Commissioner Dunn: Now it's serving as a reimbursement. You were here, right? Commissioner Gort: Yeah, I remember. Commissioner Dunn: Yeah. Commissioner Gort: I have a question. Chair Sarnoff. Commissioner Gort. Commissioner Gort: Grant administra -- we have $500, 000 for that. Have we been able to collect all the money that's supposed to be coming to the City from grants that we've advanced the funding and we're supposed to get it back? At one time I think it was close to $20 million or something like that? Mr. Spring: Oh, like FEMA (Federal Emergency Management Agency) -- the FEMA stuff? Commissioner Gort: FEMA and all the others that are grants and we're supposed to be getting money back. Chair Sarnoff. That's the money in the reserve? Is that the reserve money that --? Commissioner Gort: No, no. That's money that we upfront -- Commissioner Suarez: Uncollectable grants. Commissioner Gort: -- from grants -- Commissioner Suarez: Uncollected grants. Commissioner Gort: -- uncollected grants. Mr. Spring: It's the -- you're talking about the hurricane, FEMA --? Commissioner Gort: It was quite a few of them. Mr. Spring: A bunch of -- that were in the audit. I'd have to give you an update on -- from Finance where we are on that. I know we've made progress on some of the collections, but I don't know exactly where we are today. Mr. Migoya: IffI can, what I'd like to add on the CRA for a second, we now have a specific opinion where we're fine on the Omni CRA for the reimbursement of the $5 million on the Museum Park. We have yet to get an opinion on the 5.4. So what I was saying previously to the Vice Chairman is that obviously at this point we're short $6 million on the capital side, but we may be short 5.4 if we don't get the right opinion. So at the end of the day, we will know more about that by tomorrow -- well, hopefully, by tomorrow in which our City Attorney and our CFO (Chief Financial Officer) will be speaking to bond counsel, but at this point it has some probability of payment or nonpay -- or not being able to get it reimbursed. Even though it was the intent from the very beginning to be reimbursed, we have to get the opinion of bond counsel City of Miami Page 61 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 as to whether we can receive the reimbursement or not. So I just wanted to put that on the -- out there for you to -- as we're trying to keep track of where we need to be, there's another 5.4 which at this point is doubtful. Vice Chair Carollo: Well, we don't know yet, correct? Mr. Migoya: No, I know. But I'm saying that -- Vice Chair Carollo: Right, right. There's the potential. Mr. Migoya: So -- exactly. There is the potential for that so -- and we'll -- obviously, we'll have it addressed well before the 27th. Vice Chair Carollo: Obviously. Mr. Migoya: But as we're dealing with conversations tonight and we're trying to keep track of where we are, that's something we need to keep track as well. Vice Chair Carollo: Larry or Diana, the only thing is -- I guess maybe an error -- but why didn't we record it as a loan? Mr. Spring: The debt itself? Vice Chair Carollo: No. The City loaning the money to CRA. Mr. Spring: It wasn't a loan. The City was a back pledge on the bond issuance itself. They were the sec -- you know how in the garage debt right now, the pledge revenue, the primary pledge revenue is the CDT (Convention Development Tax) and the revenue from the team, but then as a backstop pledge you have this covenant to budget and appropriate. In that bond deal you had a secondary pledge of state shared revenue from the City ofMiami because at the time they were doing the deal, they knew the TIF hadn't gotten to a level yet to make the payment, which is max of 300,000 a year, and so we stood in as the backstop to the CRA. Somewhere in that history there should have been a shift to the TIF as opposed to the City continuing. Andl think there was some discussion in the record back in the '90's with Commissioner Teele with regards to -- him wanting to continue it the way it was. But you know, legally, the TIF is -- was the pledge for that debt, but that's why it wasn't recorded as a loan, the amount that we were paying as a loan. It was a -- Vice Chair Carollo: What about -- Mr. Spring: -- debt payment -- a debt obligation. Vice Chair Carollo: -- the 5 million for the design of Museum Park? Mr. Spring: The 5 million for the design of Museum Park -- Vice Chair Carollo: Why didn't you record that as a loan -- Mr. Spring: Because of the process -- Vice Chair Carollo: -- in the book? Mr. Spring: -- that we were going through. In -- at approximately the same time we, the City Commission, passed the global agreement with the County, the two CRA's; we were getting the project, the museum project, through its approval process. In order for us to legally be able to City ofMiami Page 62 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 get TIF, to use TIF money on the project, it needed to be in the boundaries, so we were going through that process. But the global agreement was a cooperative agreement that showed the intent of both the City, the County, and the CRAs to have that project as a CRA funded project. Until all of that happened, which was done in this last -- late this last year, it would not have been appropriate from an accounting standpoint for me to say, oh, yeah, I'm going to get -- I'm expecting a receivable. So that's the only reason why. I guess now at the end of this year, we would -- we could convert that expenditure to a receivable with the action that will be taken by the CRA board in the next few days. Vice Chair Carollo: Okay. And as far as legal counsel, you think by the next -- by tomorrow or the next day we will know? Ms. Bru: Vice Chair, we have done the analysis of the statute, the enabling legislation, and Eve concluded that it is a permissible reimbursement. We just need to put it in writing so that you have it in writing and we're preparing that opinion in writing, but that is -- the opinion is going to be that, yes, that it's permissible. Vice Chair Carollo: Thank you. I don't know, when I saw the difference between de -obligated to reimbursement, right away I thought this should be permissible so anything to the contrary -- you know, I'm not an attorney, but I would think that it is permissible. So anyways, with that said, you know -- I don't know if someone would like to say anything else. Commissioner Gort. Commissioner Gort: But the question about reimbursement of the grants, the outstanding grants that we have, receivables? Mr. Spring: I do understand the question. I do not have the number here. What I wanted to do is provide you with a full -- Commissioner Gort: But I think we should -- Mr. Spring: -- report by tomorrow. Commissioner Gort: -- look in that because if are paying $500,000 to a team to be -- Mr. Spring: Right. Commissioner Gort: -- (UNINTET,T IGIBT ,F) the grants, we got to make sure that we get reimbursed on time. Mr. Spring: Well, we -- obviously, we absolutely need to do that 'cause we were written up for it in a management letter during this closing of this finan -- the CAFR. Keep in mind, while those are receivables of cash that we have expended, it won't add to -- we won't have additional funds to be able to appropriate, but we are suring up our bottom line by making sure the receivables are taken in. Commissioner Gort: Come back again. You said if we get the receivables? Mr. Spring: If we receive -- we put -- we advanced money -- Commissioner Gort: Right. Mr. Spring: -- on those grants -- Commissioner Gort: Right. City of Miami Page 63 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Spring: -- so we just need to get our money back. Commissioner Gort: Right. Mr. Spring: It's not additional dollars, if you will. Commissioner Gort: No. I understand. Mr. Spring: Right. Commissioner Gort: It's not a reoccurring revenue -- Mr. Spring: Right, right. Commissioner Gort: -- but it could fill some holes. Mr. Spring: Right. Commissioner Gort: Okay. My other question is, the workforce. I understand we have made some progress on workforce. Is that being placed in the budget, the projections? Tony Crapp, Jr.: Tony Crapp, Jr., assistant City Manager. We're in the process of waiting for South Florida Workforce to contact us. They're placing the item before their board sometime this month or next month, so it's not included in this budget, but we are moving forward. Commissioner Gort: (UNINTET,TIGIBT,F) and any help that we can provide, let us know. Mr. Crapp: Okay. Commissioner Gort: Okay. Thank you. Vice Chair Carollo: Mr. Chairman, continue? Chair Sarnoff You're recognized. Vice Chair Carollo: I think we could, if no one objects, start with the departments. Ms. Dziedzic: Sure. Commissioner Gort: Where are we going? Vice Chair Carollo: One thing I want to point out, when I first started looking at departments, the first thing I started looking at was salaries to see increases, decreases and so forth. And it was brought up to my attention that the decreases in salaries that we voted upon in the last special Commission meeting were not included in the salary amounts because -- well, actually, I think you could explain it better than I can, why they were not included. Ms. Dziedzic: The salary reductions related to AFSCME (American Federation of State, County and Municipal Employees) 1907 and the non -unions were distributed amongst all Citywide departments. The process to apply those cuts is an ERP/IT process, which we didn't have available at the moment. So in order to facilitate recognizing those cuts, we added them as line items in NDA as reductions to our budget. We have since then allocated those cuts to the departments and that was the submission that you received last night. Vice Chair Carollo: Exactly. And that was something that, you know, I discussed with City of Miami Page 64 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 management -- Mr. Migoya: Hang on a second 'cause I see some doubtful looks. Commissioner Gort: Yeah. Mr. Migoya: The -- what happened was -- so you remember, originally we had -- under the NDA we had some negative numbers as it related to the AFSCME 1971 -- Ms. Dziedzic: 1907. Mr. Migoya: -- 1907 employees 'cause remember, those are spread out through all the departments in the City. Commissioner Gort: Right. Mr. Migoya: We were able to allocate specific dollar amounts to Police, Fire, and Solid Waste. Remember all that? So we -- that's the way we had done it. As part of our conversations on Saturday with Commissioner Carollo, he thought and we thought it was a great idea if we could figure out a way to allocate the rest of the AFSCME 1907 to the individual departments. We were able to, from PFM, get some information around that on Sunday, which is where Mirtha and Jennifer were working through midnight Sunday and then on Monday and were able to reallocate, and that's the information that you got yesterday, which has a new set of numbers for the departments which now has the -- Vice Chair Carollo: True. Mr. Migoya: -- salary reductions by department. Commissioner Gort: Is that in here? In this one? Ms. Dziedzic: It was the e-mail submitted last night. It's not the printout, but we can -- Vice Chair Carollo: Ten p.m. Ms. Dziedzic: -- provide you with a printout. Commissioner Gort: You got it. Okay. Vice Chair Carollo: Yeah, with that said, I -- you know, that's something I spoke with management about andl said, you know, in order to see, you know, what a true expense to a department is, I need to see what's the reduction so, you know, we could actually compare apples to apples and so forth, which they agreed. And I know they provided new information last night, so I appreciate that. I really haven't had a chance to look over it. You know, I will obviously prior to the 27th. So I don't think I'm going to be discussing too much the salaries, so just keep that in mind, but there's plenty other things to discuss. The salary of the Manager, as we stated earlier, we discussed it somewhat Saturday, and it was reduced 250 to [sic] 300, 000. I -- I'm going to look at that a little bit further, as we discussed. Mr. Migoya: Let's -- if you mind rephrasing that. The total cost under the Office of the City Manager. Vice Chair Carollo: Yeah, the total -- Mr. Migoya: You did say the salary of the City Manager. City of Miami Page 65 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: No. Mr. Migoya: So I would just want you to be a little more -- I know it's 12: 40 and -- Vice Chair Carollo: Yeah. And I'm trying to move quickly. Yes. Not the salary of the City Manager, the salaries under the Office of the City Manager. Mr. Migoya: There you go. Vice Chair Carollo: Sounds better? Now that amount was also close to the same as the emergency fund that -- you know, it's under the NDAs, but anyway, we'll discuss it further later on With that said, I had the same question with regards to IT, communications and related services. You know, what's that about? What's communication and related services? Ms. Dziedzic: In IT? Vice Chair Carollo: No, no, in the Manager's office. Ms. Dziedzic: Those are cell phone allowances and any air cards or -- assigned to that department, or cell phones assigned to that department. Vice Chair Carollo: Question. And now I ask for guidance on my colleagues since you have more experience in this budget ordeal from previous budgets. Usually, if you want to see a reduction or if you want to discuss it, is it now the time or do we wait for later on? I mean, I don't want -- I don't really want to negotiate from the dais right now but -- Chair Sarnoff Now's a good time. Now's a good time to make your point as to what you think is overly budgeted and discuss it and see if we can get a reduction. Vice Chair Carollo: You know, I do think -- I mean, I don't know who has cell phones in the Manager's office or not. Obviously, you know, him having a cell phone, I definitely do not have a problem with that, especially that, you know, he's foregone his pay, his salary, but -- you know, and that is something that I asked. I want to see who exactly is under the Manager's office and that's why I asked for the information. I didn't have the names and that's why, you know, I want further detail -- Ms. Dziedzic: Sure. Vice Chair Carollo: -- because I don't even know who's under the City Manager's office and this could explain some of the cell phones and so forth. And not having that information, it's kind of difficult for me to say, yes, we should reduce it or -- Chair Sarnoff You've not been provided a list of employees under his department? Vice Chair Carollo: Yes and no. I was provided with a list of -- Ms. Dziedzic: The positions. Vice Chair Carollo: -- positions. However, I haven't been able to like really grasp -- reconcile it and really see who's who or what. Apparently there's different positions there that I didn't expect would be there, and you know, I think it needs further looking into. In other words, it's just not -- for instance, my office, you know you have X'humber of employees, you know, and you see them everyday and so forth. Apparently, his office, you may have an assistant city manager or staff or so forth, so I don't know what assistant city manager is under his office or not. I didn't see the City of Miami Page 66 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 names so -- Ms. Dziedzic: We can provide you the names of those -- related to those -- Chair Sarnofff. Mr. Manager, how many people are you carrying in your office? Mr. Migoya: We have -- I don't know -- I can't tell you specifically everyone. But for example, the two assistant city managers are on there, the CFO -- Ms. Dziedzic: CFO. Mr. Migoya: -- is on there, their executive assistants, their assistants are there. Ms. Dziedzic: Your administrative staff here and at the MRC (Miami Riverside Center). Chair Sarnofff. Do you have a hundred people? Do you have --? Ms. Dziedzic: No. It's 17 or 18 positions. Chair Sarnofff. Seventeen or eighteen positions? Ms. Dziedzic: Yeah. Chair Sarnofff. And what's your budget? Mr. Migoya: The budget is -- for the next year is a million nine sixty-six. We did budget for a paid City Manager. Chair Sarnofff. Which you might want to consider. Vice Chair Carollo: And you know, I wouldn't have a problem with that. Chair Sarnofff. Problem. I have a problem with him working for free. Vice Chair Carollo: Anyways, with that said, but -- Chair Sarnofff. I think I'm going to pass a reso. Vice Chair Carollo: -- the bottom line is, you see why, you know, I'm inquiring about this. And you know, I didn't know that the CFO and all the other positions that you named were under the City Manager, so I would have to really break it down. So realistically, Commissioner Sam off, for me to start saying what needs to be reduced or not and so forth, I think it's premature on my part. And you know, as an accountant, as a professional, I wouldn't just like to throw numbers up in the air. I'd like to be able to justify what I'm saying so -- Chair Sarnofff. And a little historic knowledge for you -- and I'm not saying he's done it, but historically, a lot of people got put in the City Manager's office, a lot of people. Mr. Migoya: And a lot of people have been substantially cleaned up this year. Chair Sarnofff. I'm not -- Mr. Migoya: No, no. Chair Sarnofff. -- casting the aspersion on you at all. City of Miami Page 67 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: No, no. My point was that when I got here, there were a lot of people, and we've been -- just like some of you -- and know some of you had the same issue in your offices -- we spent a lot of time cleaning up that office and making sure we had less and less people. But in addition to that, there were originally two assistants. Obviously we're down to one with -- we have Michelle Pina and Lynn. We're down to just one at that point. And then basically the other thing is obviously every assistant City Manager and the CFO are part of that budget as well. But you're welcome to go through it. When you do, you'll see it's fairly clean. Vice Chair Carollo: Yeah. I mean, I just need to know because obviously Michelle and Lynn and so forth, I would see and will know, but when you say 17 or 18 under -- Ms. Dziedzic: We'll provide with you that information. Vice Chair Carollo: Right. I would have to see a little bit more just to, you know, see what your budget is and see -- you know, just -- I think -- in other words -- I guess what I'm trying to say is I'm doing my due diligence. I think it's reasonable for me to ask this question. And listen, we've already identified $250,000, you know. Mr. Migoya: It's not only reasonable, you're entitled to it. Vice Chair Carollo: Rental and leases. And again, realistically, in order to see who is, you know, part of your budget and so forth, I think we should just continue, except for aid to private organization. I see that for 2010 zero was budgeted. Project -- actually, this year $8,000 was spent and another $8,000 is proposed for next year. What's aid to private organization? Ms. Dziedzic: That was a one-time contribution andl don't remember off the top of my head what that was for. Vice Chair Carollo: If it was a one-time contribution, it's also proposed for next year. Ms. Dziedzic: It's part of the modifications that we went through on Saturday. It was removed on Saturday. Chair Sarnofff. It is removed? That is removed? Ms. Dziedzic: Yes. It is removed. Chair Sarnofff. So we can put that -- Vice Chair Carollo: Well -- Chair Sarnofff. -- in the plus column? Commissioner Gort: How much is that? Ms. Dziedzic: There's a modifications column where we're keeping tabs of all of the -- Chair Sarnofff. So that's $8, 000 for anybody that's keeping tabs here that -- Mr. Migoya: Yeah. Ms. Dziedzic: Correct. Mr. Migoya: Sorry we didn't bring that one up, but it's $8,000. We didn't -- forgot about it. City of Miami Page 68 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: No. But hold on. But that modification is not in the new -- Ms. Dziedzic: No, because the legislation had already been prepared and published, so these are modifications for the 27th, for the meeting of the 27th. Vice Chair Carollo: Which you haven't provided to us yet. Ms. Dziedzic: No. Vice Chair Carollo: Okay, 'cause -- Ms. Dziedzic: Because it'll incorporate whatever changes you instruct us to do in this meeting. Vice Chair Carollo: So we're going to get yet another Excel file? Ms. Dziedzic: Yes. Vice Chair Carollo: Okay. Three computers? Office of the City Clerk. The only thing I really have is professional services, and pretty much know what the answer is going to be. It seems like last -- well, this year, we have a million dollar of an expense, and you're bringing that million dollar down to $50,000. When I say that, I pretty much know what it's going to be. You're going to tell me that it was special elections and the runoff. No? Ms. Thompson: No, no, no. In the Office of the City Clerk, last year, under professional services, we had an adopt -- oh, I'm sorry -- for fiscal year 2010 -- Vice Chair Carollo: Right. Ms. Thompson: -- we had an adopted budget of $59, 275. Vice Chair Carollo: Right. Ms. Thompson: The projection -- Vice Chair Carollo: Yeah. Ms. Thompson: -- is different. Vice Chair Carollo: Exactly. Ms. Thompson: Right. Vice Chair Carollo: And that's what I'm talking about. That -- in other words, projected but projected for this last month 'cause in all fairness we're -- I think we're doing actuals and then for this last month we're projecting, and that amount is 1, 022, 000. And actually, for the proposed for next year, it's $50, 000, which is great. My question was, what's that $1 million -- and like I said, I'm sure you're probably going to tell me that's for the special elections and runoff -- Ms. Thompson: Which they move -- which was moved over to the NDA. Ms. Dziedzic: Correct. Vice Chair Carollo: Exactly. Okay, thank you. In the Office of Civil Service, I have a quick City of Miami Page 69 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 question. It has professional services, legal. Is that outside counsel? I thought we provided a City attorney. Ms. Bru: Civil Service is a quasi judicial board so they have to have counsel that advises the board separate and independent from my office, which prosecutes before the board, and they retain counsel to advise them on their budget. Vice Chair Carollo: And again, in some of these -- well, in most of these, I'm not touching the salaries. We'll wait for the 27th just to make sure, you know, the amounts are correct and so forth. In the Office of the Auditor General, I see here accounting and auditing. There was none budgeted last year, none used this year, yet we have proposed 18,250. Ms. Dziedzic: The auditor general requested $18, 000 for a peer review. Vice Chair Carollo: Peer review? I mean, I know what a peer review is. I just don't know why the auditor general would be doing peer review and why $18,250. That seems kind of high. Chair Sarnoff Well, help us with that. Why do you need a peer review? Vice Chair Carollo: No. I don't know why he would need a peer review. I know accounting firms do peer review and, you know, they cycle and every three years or so members from a firm go to another firm and they test to make sure that the accounting policies and all the procedures and so forth are followed correctly. Mr. Migoya: My understanding that it's not his peer review, but peer reviews of others in the state; that he has to provide some of his people to travel to other places to provide peer reviews. Vice Chair Carollo: Is this mandatory? I mean -- Ms. Dziedzic: According to the auditor's submission, the Miami City Commission has mandated that the Office of the Independent Auditor General implements a peer review program. This program has specific training, tuition, travel, hotel, and other cost requirements. This budget line item pays for all peer review related cost expenditures, including training and other costs. Apparently it was mandated. Vice Chair Carollo: Mandated by, I'm sorry? Ms. Dziedzic: The City Commission. Chair Sarnoff The City Commission mandated that? Ms. Dziedzic: According to -- Mr. Migoya: According -- Ms. Dziedzic: -- the auditor's submission. Mr. Migoya: -- to the last contract that you provided him, you asked him to be part of a peer review program. Commissioner Gort: When was this? Mr. Migoya: I think -- Vice Chair Carollo: That was before our time, Commissioner Gort. City of Miami Page 70 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: -- there was only one ofyou on that -- Chair Sarnoff. No. I don't recall this at all. Whose got his emoluments? 'Cause the only thing we approved was his emoluments. While you're looking for this, correct me if I'm wrong, didn't you give him two or three more auditors -- Ms. Dziedzic: Two. Chair Sarnoff. -- from last year? Two. Commissioner Gort: Two. Mr. Spring: I don't -- Mr. Chair, I don't need to look. Doing that -- when you approved his last contract, you directed him to get into a peer review process and it was actually, I believe, a recommendation of District 5 at the time. Immediately after that, I think he passed out so you probably don't remember the discussion so -- Chair Sarnoff. The auditor general passed out at the podium. He's done it a couple times. He gets nervous. He did, he passed out. Commissioner Gort: Who passed out? Chair Sarnoff. Yeah, he did. He just -- Commissioner Gort: Who? Chair Sarnoff. -- blacked out. Commissioner Gort: The auditor? Chair Sarnoff. Yeah. He gets nervous. Vice Chair Carollo: Okay, okay, okay. Let's move on. Let's move on. So the bottom line is, it's mandated by a previous City Commission andl guess the amount -- who came up with the amount? I mean, 18,250? Ms. Dziedzic: The auditor general. Vice Chair Carollo: Eighteen thousand two fifty, I mean -- I -- you know. Okay, maybe before the 27th I could speak to him and see if we could cut that somewhat. The only -- the other thing I saw was, you know, postage from ninety-one bucks to a hundred bucks to four hundred. I mean, it's minor, it's immaterial, but still, I mean, we're looking at everything. Office of Communications. Okay. Office of Employee Relations. One thing I see is professional services, medical. Is that group benefits? Ms. Dziedzic: No. This -- the medical exams provided upon hiring. Vice Chair Carollo: Medical exams provided upon hiring. Why is it going from 45,000 to 72,000? Are we --? It doesn't seem like we're hiring anybody any time soon. Mr. Migoya: Because it was eliminated last year to do all the -- no medical exams for any new hires, which is actually an issue that we have from an ER (Employee Relations) perspective. So maybe we can get Larry to address this. City of Miami Page 71 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Spring: Larry Spring, interim ER director. Less than 24 hours now. Oh, for -- it's the -- these are the medical exams that establish pre-existing medical conditions for workman comp purposes. This also -- as I see here, pursuant to City Code Chapter 40, Section 40-248, as a condition of entry into the pension plan as well. Vice Chair Carollo: I'm sorry, Larry, could you restate that again? Mr. Spring: It is a condition -- or a, I guess, requirement to establish pre-existing conditions for the purposes of workman's comp. Also for pre -employment physical exams, the code requires that we do it as a precondition for allowing someone in the pension plan. And that code section I cited, Chapter 40, Section 40-248. Mr. Migoya: And this was estimated based on the number of police officers and firefighters that we're going to be having to hire during the year and a few nominal general employees as well. That's how the number came about. Mr. Spring: Yeah. And in there you have return -to -work physical exams, they're approximating about 400 for the year; random drug testing per CBAs; CDL, also random drug testing, and then the pre -employment medical and drug screenings. Chair Sarnoff. So the answer to the Vice Chair's question as to why it was 45,000 last year versus 72,000 projected is because you didn't do physicals last year? Mr. Spring: You -- well, I know there was -- Chair Sarnoff. You didn't do pre -employment physicals or --? Mr. Spring: I think in the budget that was approved by the Commission last year, there was an expectation that we wouldn't be hiring anyone, so that number was significantly low. This is all new. This is all new stuff. Mr. Migoya: Yeah. The budget was 20,000 and we actually -- Mr. Spring: Right. Mr. Migoya: -- spent 45,000. Mr. Spring: Right. Chair Sarnoff. So -- Mr. Spring: Because in that category, it's not only pre -employment. It's also -- Chair Sarnoff. Is it fair to say that the reason it's going up $27, 000 is because you anticipate a number of people retiring, taking up the rule of 64 or the rule of 70, and you're going to need to replace a number of people with new hires? Mr. Migoya: That and we're going to be doing -- they did not do a complete physical -- Chair Sarnoff. Last year. Mr. Migoya: -- for the new hires last year, so it's not just the extra number of people, but a complete physical. Mr. Spring: Yeah. This is looking -- City of Miami Page 72 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Gort: Let me ask a question. Chair Sarnoff Commissioner Gort. Mr. Spring: -- approximately an expectation of -- and this could be turnover, again, Police, Fire Chair Sarnoff I gotcha. Mr. Spring: -- (UNINTET,TIGIBT,F) 125 complete pre -employment exams, 50 chest X-rays if required, 100 Hepatitis screenings, 100 HIV (Human Immunodeficiency Virus) screenings. Chair Sarnoff All right. Mr. Spring: You know -- Chair Sarnoff I get you. Mr. Spring: Yeah. Commissioner Gort: What's considered special pay? Ms. Dziedzic: Special pays for Fire and Police are the supplemental pays, so those are the plus Commissioner Gort: No. I'm talking about -- Vice Chair Carollo: Yeah. Commissioner Gort: -- Employee Relations. I've seen it -- Vice Chair Carollo: Right. Commissioner Gort: -- through a lot of the departments. Vice Chair Carollo: There's a lot more special pay than just Fire and Police. Commissioner Gort: Yeah. Ms. Dziedzic: Right. In the adopted 2010 budget we attempted to allocate funding for those one-time payouts, vacations and sick payouts upon separation and vacation purchases that happen periodically throughout the years. During the midyear we removed those special pay budgets out of each of the departmental budgets, moved it to NDA and that totaled approximately $2.2 million, and we've experienced so far about seven and a half million dollars in one-time payouts in the current fiscal year. So aside from the supplemental pays for Fire and Police, those also include the one-time vacation, sick payouts upon separation and vacation purchases. Commissioner Gort: Thank you. Chair Sarnoff Can I ask a follow up on that? Then how are we budgeting this year? In the NDA, are you budgeting how much money for vacation and sick payouts? Ms. Dziedzic: Ten million -- City of Miami Page 73 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: Ten. Ms. Dziedzic: -- dollars. Chair Sarnoft Ten million. Mr. Migoya: Right. And the estimate of where we are for this year is at eight and a half million dollars of the -- Ms. Dziedzic: We're projecting eight and a half million by the end of the year. Chair Sarnoff Do you think ten's adequate? Vice Chair Carollo: It's probably lower. Mr. Migoya: Well, the -- Chair Sarnoff Lower? I think it's higher. Vice Chair Carollo: No. Mr. Migoya: You know, the thing is, once you're -- because we're going to be at eight and a half million dollars, it's very difficult to predict anything lower in that range, so that's why we're having to predict the projected ten million dollars. However, after -- Ms. Dziedzic: After January. Mr. Migoya: -- January -- the first couple of months and then January, when you actually have people that --from the DROP (Deferred Retirement Option Plan) that actually retire -- because they usually retire in January -- we will know better what that one-time payout will be, and that's where the -- that's the category that if we have a manageable number, we should be able to loosen up some money to allow some of the employees that actually got reduction in salary -- major reduction in salaries to be able to draw against their vacation pay. That's something that would be unusual. That's -- so when we talked about last Tuesday about doing this, this is where the money would come from. So that's why we're kind of hoping to be able to keep that $10 million, not necessarily because we're going to -- we're hoping we're not going to have to need it from turnover. We're -- hopefully, we're going to have to need it from ability to help out employees. Chair Sarnoff When do you anticipate, from a policy standpoint, you're going to make a policy on that? Mr. Migoya: I'd say we will probably -- we probably should know by December because if people are going to retire in January, we should know 30 days in advance. Is that about right? Ms. Dziedzic: Not necessarily if they've dropped. Mr. Migoya: But if not December, certainly by January we should be able to determine that. Chair Sarnoff Are you going to craft a policy? Mr. Migoya: The -- it won't be so much a policy. What I've been thinking about, from ability to do vacation, is to announce to the employees that we will make it available and have -- and then probably the easiest and most consistent way to do it is let's say we make available $3 million, as City of Miami Page 74 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 an example, and we get $6 million worth of applications, then we just say 50 percent of it gets paid and we just divvy up that $3 million proportionately to those applicants so that everybody gets a share of it. Chair Sarnoff Are you going to restrict it to public safety? Mr. Migoya: I don't know at this point. The challenge will be how to deal with it 'cause obviously, they're the ones that are impacted the highest. So we probably should -- we shouldn't really restrict it to public safety. We should probably try to skew it towards public safety. So I -- andl haven't given that a whole lot of thought yet, but that's something that we need to figure out how to deal with. You know, I know I've had conversation with each and every one of you about that, and this is probably the best way -- rather than try to determine needs and things of that nature, this is money that's owed to them. It's to our advantage to reduce our potential liabilities that we have anyway, so if -- as much as this money's available by January, then we can give out to the employees. First, it serves a great need for them. We pay them what they owe -- what they're owed anyhow, and in addition to that, we lower our liabilities. It's a win on all sides. Chair Sarnoff Well, I think every Commissioner here wants to see a hedge on the human factor, which this would serve some purpose of a hedge. And that's something I'd like to see you move forward on as quickly as possible. Mr. Migoya: So that's why -- Chair Sarnoff And I'd also like to see it restricted to public safety. Mr. Migoya: You would like to see it restrict --? Chair Sarnoff I would, yes, 'cause they took the biggest decreases. Mr. Migoya: We'll have 90 days and we can discuss it over that period of time as to how to do it, but obviously they're the ones that are impacted the most, but you know, the general employees have some impact as well so -- Vice Chair Carollo: And Mr. Chairman? Chair Sarnoff Yeah. Vice Chair Carollo: In addition to that, something that I discussed in the last special Commission meeting -- I don't think the impact (UNINTELLIGIBLE) when we imposed and that we spoke about on Saturday, which I would like to see possibly establishing some type of trust fund. However, I want to know what the parameter, restrictions are going to be and so forth 'cause I think there are some employees that are going to go through some hardships with medical and so forth. They have special needs, andl think we need to establish something of the sort. You just saw that, you know, we had aid to -- Ms. Dziedzic: Private organizations. Vice Chair Carollo: -- private organization. You know, that was $8,000. I'm sure we'll -- I'm sure I saw some others in the budget and maybe, you know, we could set some type of trust fund, and you know, see how we fund it. And at the same time, you know, I'm letting you know of my intentions. I'm letting you know that I want to see this happen because, again, you know, I see all these non -for -profit organizations coming to us and all these great organizations coming to us and we support and help out, but I think at this time we need to help our employees too that are really going through some rough times so -- City of Miami Page 75 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: Yeah. The challenge here is what -- since we talked on Saturday -- Vice Chair Carollo: Right. Mr. Migoya: -- I've been struggling about, you know, ever since is how to determine -- andl know you were going through the same thing. How do -- Vice Chair Carollo: Yes. Mr. Migoya: -- you define hardship and how do you make it consistent so that everybody has an equal way of looking at it 'cause that will be the most difficult part of it, I think. Commissioner Gort: You have to set up the criterias [sic]. Mr. Migoya: Yeah. Vice Chair Carollo: Exactly. So I guess at this point I want to let my colleagues know of my intention. I want to know -- I want to let everybody know that, you know, I'm thinking about it, see how do we do it, but again, you know, there's areas that, you know, we need to set, you know, some sort of limits and see where the parameters are and so forth but -- Chair Sarnoff But I just caution that -- There's going to be a lot of reasons why people are going to come to -- are going to need a hedge, if you will. It could be mortgage, it could be a sick child, it could be many different reasons, and that's why I don't know that we don't do anything other than make available a certain res of money. Andl liked your idea, you know, if we have 3 million, if -- whatever we have, I would restrict it to public safety, andl don't know what criterias [sic] you would set because I'd want to make sure that it goes on an across-the-board basis as best it can, but that's a hedge on the human factor of people living where their last paycheck said. Mr. Migoya: Yeah. And you know, I would be okay with even releasing maybe some small piece of that money even before January, and we could have a discussion, you know, 30 days from now as to what that would look like. Chair Sarnoff Well, the impact would be felt by them October -- Mr. Migoya: Immediately. Chair Sarnoff Right --1. Commissioner Dunn: Right, immediately. Chair Sarnoff I'm sure for some, you know, they have a certain amount of money. I just -- I think what the Vice Chair is saying -- I think most of us are saying is we really want you to work on this. Commissioner Gort: Sure. Mr. Migoya: We will. Believe me that -- Commissioner Gort: I think we all agree on that. Mr. Migoya: The biggest impact -- and we've said this all along -- what we did last Tuesday, even though we had the issues with the City and everything else, at the end of the day, you've all said it andl agree with you, is the fact that people are going to have less disposable cash and City of Miami Page 76 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 how that's going to affect their debts and their -- everything else that goes along with it, so the quicker we make some monies available to some of these people, the better they will be and so forth, so that's as high a priority as anything else we got right now, I believe. Chair Sarnoff Okay. Commissioner Dunn: Mr. Chairman. Chair Sarnoff. You're recognized. Commissioner Dunn: Mr. Manager, to anyone on the dais, is there a model of sort that we -- that you may know of? I mean, I'm just trying to -- because you -- the Chair raises a great question about -- andl know we set the parameters and conditions, but based on what, I guess -- I support it wholeheartedly. I think it's a wonderful, wonderful idea, but you got to be careful to -- that you don't open up the entire floodgates because everyone is going to deem their situation dire, andl run into this from a micro chasm perspective all the time with my parish, you know, how do you -- but I'm just saying, is there a model of -- governmental model of some sort, a union model? Vice Chair Carollo: I think that's why at this point, you know, I'm letting you all, you know, know my intentions -- Commissioner Dunn: It's good. It's noble. Vice Chair Carollo: -- but at the same time, I'm proceeding cautiously, working with the Administration so we set the parameters and so forth, taking into account everything that's been mentioned. So that's why we don't have anything set yet. I think it's premature, but I just wanted to let you all know my intentions and that I'm working with this. And you know, obviously, all of your suggestions and advice is more than welcome. Commissioner Gort: I think Employee Relations should take care of that, the interim director. Chair Sarnoff. The model we had in the past and what happened in the past was the City Manager had a discretion -- help me with this, Madam City Attorney, 'cause you remember this. There was a -- he had the discretion to allow people to use their vacation and sick time, andl think we called it for -- I guess it was emergent situations. However, what was used a couple of times, and we learned it, I think, in the last budget -- matter of fact, probably a year ago today, was that a couple of people bought some larger homes and that was what they considered to be an emergent situation. I think we're not going to face anything like that this time. I think we're going to look at people trying to hold on to their homes -- Commissioner Dunn: Sure, sure. Chair Sarnoff. -- and people dealing with different issues -- Commissioner Dunn: Real life situations. Chair Sarnoff. -- so, you know, I don't think you -- we're dealing with the same set of circumstances. But historically, the City Manager did have that ability to grant people the right to use this vacation. Mr. Migoya: And for you to know, in the last 30 days, I did do about three or four of these to people that were going through extreme issues with sicknesses and things of that nature. So I have been doing -- Chair Sarnoff. So you have some experience? City of Miami Page 77 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: -- that so -- but it's -- and I'm talking about extreme issues so -- Chair Sarnoff. Okay. Commissioner Gort: It's quite a few hard cases that we have. Mr. Migoya: But we will come up with something by the middle of October -- Chair Sarnoff. Okay. Mr. Migoya: -- that we can come with as far as the vacation policies and how we can deal with this, and let's give us a little bit of time to deal with -- but I think we all share the same common concerns, so if we can work on that and you allow us to work with the Vice Chair on that other one. I don't know -- that's the piece that I'm least comfortable with, but I'm very comfortable with how we can deal with the vacation and sick days. Chair Sarnoff. All right. Vice Chair Carollo: Can we move on? Chair Sarnoff Yep. Vice Chair Carollo: ER, travel and per diem, Larry, I see that nothing was budgeted for this year and nothing was used, yet you're budgeting 12,500. And again, you know, I'm not saying you; I'm just saying the Office of ER 'cause I know you just got -- I don't even know how to say it, but you know what I mean. Unidentified Speaker: He just inherited it. Vice Chair Carollo: Yeah, you inherited it. Congrats. Mr. Spring: Mr. Vice Chair -- Vice Chair Carollo: I think -- Mr. Spring: -- actually -- Vice Chair Carollo: -- I actually think that's how Tim Schmand felt when they told him, hey, you're the new executive director for MSEA (Miami Sports & Exhibition Authority). Mr. Spring: MSEA, yeah. Vice Chair Carollo: So -- Mr. Migoya: Actually, he got a decrease in pay and an additional responsibility. Mr. Spring: I'm seeing here -- and actually, I would actually like to do this, Commissioner, if at all possible, since I literally just got this yesterday. Vice Chair Carollo: Gotcha. Mr. Spring: I haven't gone through any of the detail on the budget. Vice Chair Carollo: Okay. City of Miami Page 78 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Spring: And ifyou would give me -- maybe we can meet and I'd be prepared for the next meeting -- Vice Chair Carollo: You got it. Mr. Spring: -- 'cause I haven't gone through a very thorough review of the budget yet. Vice Chair Carollo: You got it. And I'll give you some -- Mr. Spring: You can give me some of the things that you want me to take a look at specifically. Vice Chair Carollo: Yeah, I'll give you -- well, that'll prepare you for coming back with -- come back with good justifications. Mr. Migoya: IffI may give you all an explanation. One of the things that -- when we talked about trying to keep tallies and everything else, I've been trying to keep the capital expenditure account as basically our reserve, and as we identify either revenues growing better than we thought they would with some expenses being lower, that we'd be able to use some of that money towards the capital expenditures. It's a lot easier to replenish capital expenditure than it is to predict or change operating expenditures. So that's -- as we do all these work and we can go right through into the 27th meeting, we can use that as a way to replenish some of the capital funds as we need it 'cause right now we are short $6 million of the capital funds. Vice Chair Carollo: For -- when you say you're short 6 million -- Mr. Migoya: Citywide. We're short a million and a half in police cars. We're short a million and a half in Fire. We're short a million in property maintenance. And I'm assuming we're short $2 million in the garbage fee. Vice Chair Carollo: Gotcha. Commissioner Dunn: Could you repeat that? Vice Chair Carollo: Okay. Mr. Migoya: I'm happy to do that. It's -- if you look at the capital expenditures, we have to -- as far as the police cars, we're looking at 200 police cars have to be replaced for two reasons. One is they're over seven years. There are some that are seven and eight years because we didn't replenish any last year. And there's -- I think there's about 60 that are total -- the Mayor was around here. It's close to that number. Vice Chair Carollo: Are we outright -- andl know I mentioned this before -- purchasing, financing, leasing? Mr. Migoya: The assumption is that we would buy them. We will do the exercise with you. I'm very comfortable to say that you will find that it doesn't make sense to lease them, but we will have that discussion later. Vice Chair Carollo: Good. Mr. Migoya: So that's based on the assumption that we're buying them. In addition to that, we're talking about -- 67 total? Oh, I'm sorry. I was wrong. It's not 60 cars that are total; it's 57. But anyway, it's 200 cars. That's $4.7 million. At this point we're at 3.2 million, so we're short a million and a half on that one. We had an allocation of $3 million for fire trucks, of City of Miami Page 79 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 which 1 million is CDBG (Community Development Block Grant) -- Vice Chair Carollo: CDBG. Mr. Migoya: -- so we're down to 2 million, but only half a million is in the number so that's a shortage of a million and a half. And we were looking for a million dollars in property maintenance for maintenance of buildings that we haven't done any in the last couple of years so that's the other -- well, million and a half -- million and a half on one is four million dollars. In addition to that, it's $2 million for the -- on the capital for Solid Waste. So depending on what you guys do by 4 o'clock this morning, we'll find out whether -- and I'm -- maybe I'm being conservative when I say 4 o'clock, but we will know whether -- Vice Chair Carollo: I was going to say -- Mr. Migoya: -- we're short -- we will be short 4 or $6 million at that point in time. And depending -- and then besides that, the other thing that's still up in the air is the $5.4 million on the ruling on -- Commissioner Dunn: Still up in the air. Mr. Migoya: -- Omni -- I mean, not the Omni, the Overtown CRA. Vice Chair Carollo: CRA. Mr. Migoya: So those are the pending items. So at this -- Vice Chair Carollo: Larry is ready to write. Mr. Migoya: -- point, we've identified $401,000 -- oh, and $8,000. Vice Chair Carollo: Larry's ready to write. Mr. Migoya: And $250,000, so we're about $650,000 that we've identified towards that. Vice Chair Carollo: Continue. Mr. Migoya: So we're working. Commissioner Gort: (UNINTET,TIGIBT,F) a million already. Vice Chair Carollo: Continue. Larry, advertising -related costs, 20 grand. None's been used before. I don't know what we're going to advertise if -- and it doesn't seem like we're really hiring so -- I don't know what other occurring charges and obligations are. You've got 25,000. This year you've only spent $8 on it, so I don't know what's been allocated 25,000 for that. Mr. Migoya: Hang on. But we need to hire some -- for -- an example of that is in the police -- police recruiting is one. Firefighter recruiting is another one. The 911 is a high turnover and we need to make sure that we continue to recruit for that, and that's something that we've had a hiring -freeze and we need to change that hiring -freeze to a hiring level of -- you know, a freeze level, so we need to work on that as well. So there are some recruiting that we need to advertise for. Vice Chair Carollo: All I'm saying is $20,000, so look at it. We'll speak about it. Subscriptions, memberships. I mean, it seems kind of high. Andl guess that's about it. We'll talk about the salaries, even though I think a lot of the salaries went to Finance. Okay. Equal Employment City of Miami Page 80 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Opportunity. Equal Employment Opportunity seems to me like it's a new department. I don't see anything budgeted for last year. I don't think any -- I don't see anything expended for this year, yet I see a proposed budget of 261, 000. Mr. Migoya: These were people that were in different departments andMirtha can tell you where they were. Ms. Dziedzic: They were housed originally in Employee Relations. They were moved this fiscal year, fiscal year '10, to the City Manager's office. But they were -- Vice Chair Carollo: City Manager's office again. Ms. Dziedzic: -- but now they were -- and it's -- in the last two amendments, they have been -- a department has been created for them -- or an office has been created for them. Vice Chair Carollo: I need -- Ms. Dziedzic: For segregation of -- Vice Chair Carollo: -- to be able to tie that. I need to see, you know, from Employee Relations to this new department to the City Manager, see how this all ties because, I mean, I'm seeing a department that did not exist last year and now we're budgeting 260,000 -- Mr. Migoya: But to give you the historical - Vice Chair Carollo: -- so I just -- Mr. Migoya: -- what happened was the EOC group, what used to be under Employee Relations, I believe it was mandated to be reporting directly to the City Manager. And what they previously did, rather than creating it as a separate department, they put -- some of these employees -- I think only Jessica was in the City Manager. The other two may not have been in the City Manager -- Ms. Dziedzic: Not for the full year. Mr. Migoya: Not for the entire year. So -- but the bottom line is that was just basically being created, and the best way to deal with this is have it as a separate department. So rather than being a part of the City Manager -- this is part of the cleanup that we were talking about -- was to have it identified, which is what it is, a department. Therefore, have it as a separate department, and that's how it got moved from all those numbers into a separate department. Jessica Pacheco: Just to clam. Jessica Pacheco, the administrator for Equal Opportunity. About two years ago, the City Commission passed an ordinance wherein it separated the Equal Opportunity Division from ER and it created it as its own separate entity, directly responsible to the City Manager's office. The purpose of that was because there was a fundamental conflict in the operation of the E -- we call it EODP, but it's Equal Opportunity Diversity Programs Office. That office is responsible for City's compliance on EEO matters, Equal Opportunity Employment matters. Essentially, we oversee the City's adherence to federal, state, and local laws concerning employment discrimination, sexual harassment, those types of compliance issues. We also provide technical assistance to all the departments to avoid or mitigate any potential EEO liability -- to avoid litigation and an additional cost to the City Attorney's Office. So it's a very complex, hybrid office, but it needed to be removed out of ER. Andl think at the time, the City Commission recognized that it was a conflict of interest to have a division responsible for investigating EEO matters be beholden to another department and not the chief executive officer of the City. So that's why you have it there as -- it looks like a new department, but it's actually City of Miami Page 81 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 been in existence since 1977, '78 as a division or function of the City. Vice Chair Carollo: If this continues, Mr. Spring is going to have two people under him in ER. It seems like everyone's moving out of there. Yeah, really. I mean, some of them went to Legal. Some of them is going here. I mean, the bottom line is I need to reconcile all of the positions and so forth, see what's in the City Manager, (UNINTELLIGIBLE) went to -- I think it's called what, EEO? Ms. Pacheco: Equal Opportunity Diversity Programs. Vice Chair Carollo: So I just -- we just need to get together and take a look at all this and reconcile because in all fairness, I'm seeing people going here, there, and I'm not really sure what's where. So you know, we just need to get together and reconcile this. Ms. Pacheco: Okay. Thank you. Vice Chair Carollo: Oh. Never mind. I was going to ask how come I don't see the breakdown of the reduced salaries that was imposed. Andl -- 'cause it's the wrong screen andl have to go to this one, so let me just -- hold on. The Law Department. One thing that I saw as far as professional services, I know that we allocated $2 million for outside counsel, yet I still see professional services of $21, 000, so I was just wanting to inquire about that. Ms. Bru: There's two professional services. The 21,250 is actually for our storage charges. That's for storing our files off premises. Then you've got professional services, legal, and they -- at least the version that I'm looking at -- I think you're looking at something else -- they've not loaded the $2 million that -- Vice Chair Carollo: That's -- Ms. Bru: -- you know, right now it was in NDA, but -- Vice Chair Carollo: Yes. Ms. Bru: -- eventually, whatever that number turns out to be will be included in that line item. Vice Chair Carollo: And Julie, I'm just seeing travel and per diem from 3 -- almost $4, 000 this year to 17 next year. Ms. Bru: Right. We budgeted 17 or requesting 17 to kind of stay consistent with what we have attempted to do in the past, which is pay the registra -- at least the registration fee. We have 24 attorneys and some of our professional staff members to go to trainings. This year, as you can very well see because of the situation, the only thing that I authorized was just purely registration fee for some very, very critical seminars, like the civil rights seminar. I'm hoping that next year we can be a little bit, you know, better about that 'cause it's so important to be able to continue the legal education and participate in some of the seminars and conferences that we participate in. I'm not approving any travel. This is for registration and certifications, not for the travel. The travel, the attorneys have been paying out of pocket. Vice Chair Carollo: Thank you. Andl mean, office supplies did go up, you know, somewhat, at least proposed, so I'm just, you know, inquiring about that. It seems like you have a lot of office supplies. I know you deal with legal, but -- Do you see it or --? Ms. Bru: Yes. Office supplies, you know, we -- Vice Chair Carollo: It's 25,500, so that's why I'm -- City of Miami Page 82 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Bru: Right, and -- you know, I mean, that's -- Vice Chair Carollo: That's part of the job? Ms. Bru: That's the tool of our trade. Vice Chair Carollo: Okay. Thank you. Ms. Bru: Now, you know that our budget is going to change because of the labor. That hasn't been -- Vice Chair Carollo: Right. Ms. Bru: -- reflected here yet. Vice Chair Carollo: And when would that happen? Ms. Dziedzic: For the 27th. Vice Chair Carollo: For the 27th. Ms. Dziedzic: Yes, sir. Mr. Migoya: We are -- we haven't even officially announced it, but we have discussed it -- Vice Chair Carollo: Well, we've -- right, we -- Mr. Migoya: -- with every one of you, and we're in the process of working all the details between the City Attorney and myself and the idea would be not only that we would have -- this is the perfect time from both -- we actually are going to defer for Thursday the TO (Table of Organization) so we won't -- table of organization. We're going to bring it back on the 23rd so that we include all that details, but also, from a budget perspective on the 27th, it will be addressed as well, and the idea is to have it all effective 10/1. Vice Chair Carollo: Thank you, Madam City Attorney. Mirtha, I'm seeing professional services, 27,191. What constitutes professional services? Ms. Dziedzic: We have to do a cost allocation plan, andl think this year is the year that we have to reimplement that plan where we get approved indirect cost that we can use with HUD (Department of Housing and Urban Development) for negotiating indirect costs. Vice Chair Carollo: And travel and per diem? It seems like everyone has travel and per diem in this budget. Travel and per diem, 5,000. Ms. Dziedzic: We go to some training to keep up with the latest and greatest legislative changes that affect budgeting and financial issues. Vice Chair Carollo: Minor again, but postage from $89, $100; this time to 1,100? Ms. Dziedzic: This year we did not submit our budget book for the GFOA (Government Finance Officers Association) award. We're anticipated to do that. Vice Chair Carollo: I gotcha. Printing, binding, that's why -- that's -- I would imagine that -- City of Miami Page 83 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Dziedzic: Correct. Vice Chair Carollo: Okay. Ended up in Purchasing. For Purchasing -- How are you? Kenneth Robertson: Good evening. Kenneth Robertson, interim Purchasing director. Vice Chair Carollo: Purchasing, I see other salaries and wages, andl wasn't really going to touch on salaries and wages, but just that 43,600 -- let me look at the other one and make sure it's the same. Yeah, what's that other salaries and wages, the $43, 600? Mr. Robertson: That's to fund a new procurement supervisor position in my office. Vice Chair Carollo: Why wouldn't that go under regular salaries and wages? Mr. Robertson: It's a newly created position. Vice Chair Carollo: And even though it's a newly created position, can't it just be incorporated in salaries and wages? What would be other salaries? Mr. Robertson: I don't know why it's split out, other than it's new. Vice Chair Carollo: Okay. Something we may want to incorporate under salaries and wages. Mr. Migoya: Mr. Vice Chair, we're in the process of consolidating all procurement for -- 'cause in the past, we have procurement for CIP (Capital Improvements Program) separated from Purchasing. Vice Chair Carollo: Right. Mr. Migoya: And we're in the process of consolidating procurement. Vice Chair Carollo: Great. Mr. Migoya: And I wanted to make sure with Alice Bravo that -- and they've already identified who the people are. Obviously, Kenneth came from there so his salary is not being allocated on this side, but the idea here is to -- this actually will all be incorporated on the Purchasing side, although some of those people already (UNINTELLIGIBLE) 1: 31: 50 their salaries are being paid by all the different funding accounts, so not 100 percent of that money will be part of the general fund, but it'll all be done. So that'll be also straightened out for September 27. Vice Chair Carollo: I think it's a good idea. It's actually something that I mentioned a while back just in passing when we had some issues in the past. Andl said, you know what -- I -- actually, I asked our former Purchasing director if it was out in left field, you know, just consolidating it, so I'm glad to see that -- Mr. Migoya: I think that it got separated originally because there were some issues, some personalities, but that's -- Vice Chair Carollo: Right. Mr. Migoya: -- not the reason why you should do that. Vice Chair Carollo: Right. Mr. Migoya: But the -- if there's any good news, it's ever since Kenneth has been in this City of Miami Page 84 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 procurement. I haven't heard any complaints, so that must be good news. Vice Chair Carollo: I've heard one but -- anyways, so -- you know, I would think that it's a good idea. Like I said, I mentioned it in the past to our former Purchasing director and -- Other contractual services. What are other contractual services? Mr. Robertson: Those funds are to fund our annual purchasing information exchange workshop where we used to reach out to vendors and suppliers. This event was not held last fiscal year due to budgetary constraints. Vice Chair Carollo: It was not held last year due to budgetary constraints. Does it have to be held this year? 'Cause I mean, I think we have budgetary constraints again. Mr. Robertson: At your discretion, we will not hold it if you so deem appropriate. Commissioner Gort: What's the function of that again? Mr. Robertson: I'm sorry. What was the question? Commissioner Gort: What is the function of that? Mr. Robertson: The function is to reach out to our suppliers and vendors by communicating to them how to do business with the City ofMiami. Vice Chair Carollo: Can we do that by e-mail? Commissioner Gort: Don't you -- we have that on the Web site, no? Mr. Robertson: Correct, but not all of our vendors read that information electronically. Face-to-face interaction is more effective. Commissioner Gort: Okay. Let me ask you a question, ifI may. I'm going to have -- on the 24th, I'm going to have a special shop at -- works -- work -- yeah. Mr. Spring: IffI could, Mr. Chair. With regards to the PIE (Purchasing Information Exchange), the PIE is an event that not only we reach out to our existing vendor community -- I mean, pool, but we also reach out to other small businesses and other new vendors to help stimulate economic development. It's something that we've been able to do at a lower cost in this, something that I requested that be in there because of all of the unemployment and the fact that we're supposed to be leveraging our dollars to a maximum of vendors. So that's why the PIE is there. We can -- I would still like to hold the event and perhaps we can do it at a lesser cost, you know, get some sponsorships or things of that nature, but it is something that has been effective in the past of helping us get a wider pool of suppliers, things of that nature. So that's why I'm -- I'm just putting that on the record. So it's not just an annual update to the existing vendor pool. It's really -- it's truly an outreach for small businesses and new businesses that are in the City. Commissioner Gort: I'm bringing a pocket item on Thursday to deal with that. Mr. Spring: Okay. Vice Chair Carollo: That's all I have for Purchasing. Thank you. Office of Hearing Boards. Can -- I actually wanted to speak to you about this before the meeting. Can you explain a little bit about the Office of Hearing Boards? Ms. Dziedzic: Actually, it's now combined with Planning. City ofMiami Page 85 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: I mean, we're budgeting $762,000 so -- Commissioner Gort: My understanding, that deals with zoning and planning hearing. Vice Chair Carollo: I don't know, but it's $762,000 so I mean -- Ms. Dziedzic: I'm sorry, Commissioner. I didn't get your question. Vice Chair Carollo: My question is can you explain a little bit about the Hearing Boards. We're budgeting $756, 000 andl want to know, you know, your functions. Carmen Sanchez (Assistant Director): Carmen Sanchez, with the Planning Department. Hearing Boards has just recently been placed under Planning, so you'll forgive me ifI don't quite answer your questions to your full satisfaction. But the function of the Hearing Board [sic] is actually they take care of boards, such as PZAB (Planning, Zoning and Appeals Board), Waterfront Advisory Board, Code Enforcement Board, so they manage a lot of these processes. When people come in to file variances, exceptions, Major Use Special Permits in the past, now special area plans, those documents, those processes are filed with the Hearing Boards. They hear -- they manage Code Enforcement cases as far as if they are heard before special magistrates, so they -- those are the functions that they actually carry out for the City. Vice Chair Carollo: Question. Some of these boards, it's my understanding that we pay their insurance? Ms. Sanchez: I couldn't answer that for you. Perhaps -- Commissioner Gort: That was eliminated. Chair Sarnoff We used -- Mr. Migoya: We eliminated every one of -- Commissioner Gort: Under Miami 21 -- Mr. Migoya: -- their insurances. Commissioner Gort: -- it was eliminated. Mr. Migoya: Are you talking about the board members themselves? Commissioner Gort: Yeah. Vice Chair Carollo: Yeah. Mr. Migoya: All of those were eliminated, sir. Vice Chair Carollo: For all the boards? Mr. Migoya: Yes, sir. Vice Chair Carollo: Okay. I don't have any further questions. Commissioner Gort: Now my understanding is that every applicant have to pay a fee. Do we have the income that's being produced by that department? City of Miami Page 86 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Sanchez: They have paid. They -- I'm sorry. Commissioner Gort: I believe that was part of the increases that we -- the fee increases that we approved. Ms. Dziedzic: Not for Hearing Boards. Barnaby Min (Zoning Administrator): Actually, Hearing Boards, some of their fees are included in the zoning and planning amendment that came this morning that was approved -- Commissioner Gort: Right. Mr. Min: -- by the Commission on first reading. Commissioner Gort: So in other words, this is one office that produces income? Ms. Dziedzic: Yes. In application fees alone -- Commissioner Gort: The applications fees that -- Ms. Dziedzic: -- they -- it's about -- Commissioner Gort: Okay. Ms. Dziedzic: -- 750,000 a year. Ms. Sanchez: They were -- Commissioner, they were increased by 5 percent this morning, some of the fees that they actually do collect. Vice Chair Carollo: And just as a FYI (For Your Information), this is something I'm going to ask before the next meeting. I'm just going to ask more details as far as the overall, I guess, department or -- yeah, Department of Hearing Boards. So I'll be asking more detail about it and so forth, but -- Ms. Sanchez: Absolutely. Vice Chair Carollo: -- let me get more acquainted with this. Ms. Sanchez: Okay. Vice Chair Carollo: Okay. Thank you. In the NET (Neighborhood Enhancement Team) offices, I see again other salaries and wages. It actually has gone down from this year. But why is other salaries and wages different from regular salaries and wages? Ms. Dziedzic: Those are the Litter Busters. Those are the temporary salaries for Litter Busters. Commissioner Dunn: Pardon me? What kind of -- what did you say? Ms. Dziedzic: The Litter Busters. Commissioner Dunn: Litter -- oh, like -- Ms. Dziedzic: The ones that go out into the streets and clean -- City of Miami Page 87 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Dunn: Okay. Ms. Dziedzic: -- the thoroughfares. Vice Chair Carollo: Question. I see for this year -- or for next year's budget at zero, but I need to ask. I see the NET office, $20, 000 aid to private organizations. What was those $20,000 spent on this year? Haydee Wheeler (Acting NET Director): That was actually a grant that we actually have paid and are waiting for the reimbursement. It's called Roots in the City. And when you go to the Overtown area under the 395, the landscape that was done by Dr. Dunn, that was the $20,000. Vice Chair Carollo: And it was a grant, so we should get reimbursed for it? Ms. Wheeler: We are in the process -- Miami -Dade County will be reimbursing. Vice Chair Carollo: Okay. Thank you. Ms. Wheeler: Okay. Thank you. Vice Chair Carollo: Okay, Code Enforcement. And -- in Code Enforcement, the first thing I wanted to ask, if salaries are going down, why are FICA (Federal Insurance Contributions Act) taxes going up? Sergio Guadix (Director, Code Enforcement): Well, that's a question for budget, I believe. Ms. Dziedzic: The overall reductions to Code Enforcement salaries beyond the imposition of the salary cuts is that they receive a reimbursement from CD to the tune this fiscal year of about $850,000. Vice Chair Carollo: Right. That's -- I was going to ask about that because I don't see it here. I need to see -- Ms. Dziedzic: Correct. Vice Chair Carollo: Right. Ms. Dziedzic: It's applied as a credit to their salary costs, so it's being applied only at the regular salaries and wages line item, not distributed amongst the FICA. Vice Chair Carollo: Answered two questions of mine with that. Professional services, I see it going up, 140, 800. What does that constitute? What professional services are you using for 140,000? Mr. Guadix: That includes the -- mainly the lot clearing that we do. Vice Chair Carollo: I'm sorry? Mr. Guadix: The lot clearing service that we do, which is actually -- we do the process. We lien the property and the money gets -- we get the money back when, you know, we go after the lien. Vice Chair Carollo: Andl see it's gone up from this year. Do you expect additional lot clearings or --? Yes? Mr. Guadix: Yeah, 'cause -- City of Miami Page 88 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: I see my colleagues -- Mr. Guadix: -- unfortunately, we're having a lot more properties -- Vice Chair Carollo: -- tell me yes. Mr. Guadix: -- become vacant and problematic. Commissioner Gort: You have a lot of abandoned homes. Mr. Guadix: Yes, sir. Vice Chair Carollo: Thank you. Mr. Guadix: Thank you. Vice Chair Carollo: I think CIP is next and -- Alice Bravo (Director, Capital Improvements Program): Good morning. Vice Chair Carollo: I guess you're right. Commissioner Dunn: Good morning, Miami. Vice Chair Carollo: I guess you're right. Okay. The only thing that caught my eye was just office supplies, $15,000 in office supplies. It went up, almost doubled. Ms. Bravo: And yes, that's the result of the situation I encountered when I joined CIP. We have numerous contracts with both professional design firms and contractors and there was no real established filing system for the contract documents that we need to have on hand. So we're trying to establish a proper system to control our documents. Vice Chair Carollo: Thank you. There's a lot of other little minor stuff that, you know, I'm sure when we meet before the 16th Commission meeting, you know, we could address, 'cause it really is a lot of little minor stuff. Mr. Migoya: Let me tell you that CIP has been impacted with some key losses through the Rule of 64, and they're going to work really diligently in not replacing those people, so that's a lot of credit to Alice and her staff. Ms. Bravo: Thanks. Thank you. Vice Chair Carollo: And Finance. Hey, Ms. Gomez. We know the salaries going up -- andl know you inquired [sic] some employees from Employee Relations and so forth. However, it didn't -- it wasn't like a wash. It seems like you increased your salaries and so forth, and because we switched to the one that had -- that reflected the reductions and so forth. I haven't really looked at it, but I know looking at it before, it seems like your salaries, you know, actually went up quite a bit and it wasn't a wash from other depart -- other --It was a little piece ofM&M (Mars & Murrie). Anyways -- Commissioner Gort: Have some carrot. Vice Chair Carollo: What's that? City of Miami Page 89 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Gort: Have some carrot. Vice Chair Carollo: Carrot. Don't make any jokes 'cause people think that we're having fun. Commissioner Gort: We are, yeah. Vice Chair Carollo: Anyways, it seems like it wasn't a wash. It seems like you actually, you know, increased your department, so I wanted to inquire about that, even though I don't have the exact numbers because of -- Ms. Gomez: Sure. Vice Chair Carollo: -- you know, the change. Ms. Gomez: Diana Gomez, Finance director. That is correct. We did receive the positions over from Employee Relations, as well as this Commission approved five positions, additional positions for the Payroll section because of the amount of work and effort that goes into satisfying the payroll every two weeks for the entire City. It was understaffed in the past. We had some termination as well as an employee went off to another department, so there was five additional positions that were approved in the midyear. So those five positions -- the salaries for those five positions is what's increasing. Vice Chair Carollo: And professional services, I see 670,000 -- 671, 000. Ms. Gomez: Professional services, the main component of professional services is the parking surcharge administration. Vice Chair Carollo: I'm sorry? Ms. Gomez: Parking surcharge administration is the main component of professional services. Under the current contract -- and it's the only thing that we could have gone by -- is about 4.14 percent of collections. We anticipate about 13.5 or $14 million of collections, and that comes out to about -- well, I budgeted for $580,000 of collections -- of payments based on collection of whatever the math is there. I don't have -- I think it was $14 million. As well -- other things in my professional services line item are collection services, fees where we pay 15 percent of anything -- of the bad debt that's collected. We have investment services, financial advising services for all the bond deals, and then we have actuary services for the Elected Officials Retirement Trust plan, so those are the items that make up the 671,000 of professional services. Vice Chair Carollo: Can I get a journal of that account, professional services? Ms. Gomez: For what was charged in 2010? Vice Chair Carollo: Yeah. Ms. Gomez: The detail of what was charged there? Sure. Commissioner Gort: The 671. Vice Chair Carollo: Just so I could get, you know, a feel for exactly what's in there and, you know, what are the normal costs. Ms. Gomez: Right. The five items that I read off to you is what is charged to professional services. City of Miami Page 90 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: Well, I'd like to see it. Ms. Gomez: That's fine. Vice Chair Carollo: And the accounting and auditing, I think, is self-explanatory. Travel and per diem, I see that, you know, you've increased to $19,000. It seems like everyone this budget year has travel and per diem. Nineteen thousand, why so much? Ms. Gomez: We have several CPAs (Certified Public Accountants) in our office that we would like to keep their certifications as well as traveling to the annual conferences of the GFOA and/or FGFOA (Florida Government Finance Officers Association). So between the CPAs in our office, for the CPE (Continuing Professional Education), the required 40 hours a year of CPE that we are required to get, as well as attending the conferences to represent the City and get into the latest -- what, you know, the latest GASBs (Governmental Accounting Standards Board) and GAAP (Generally Accepted Accounting Principles) and everything that's going on. Vice Chair Carollo: That was in Orlando earlier this month. Ms. Gomez: That's correct. Well, there's a national and there's -- Vice Chair Carollo: Which I missed because we had a Saturday meeting. Hint. It wasn't this Saturday. It was during the executive sessions. Ms. Gomez: So we do have -- Mr. Migoya: That I bought lunch. Vice Chair Carollo: You know I was going to bring it up again. Commissioner Gort: That was lunch? Vice Chair Carollo: Anyways -- Ms. Gomez: We do have several professionals in our office that we like to maintain the certifications as well as going to the trainings and then being part of the GFOA community and attending these, as well as we also have a project management professional that requires CPE as well. Vice Chair Carollo: How many professionals do you have that require CPEs? Ms. Gomez: I have five CPAs, four CGFOs (Certified Government Finance Officers), and one PMP (Project Management Professional), so the five CPAs, plus the four CGFOs require 40 hours. CGFOs are certified government finance officers. Andl have the -- one project manager who is my systems manager. Vice Chair Carollo: I'm sorry. Five CPAs and GFOs [sicg? Ms. Gomez: Four CGFOs, certified government finance officers. We try to get as much CPE as we can, local events as well as free events that sometimes are offered. But last year we did not attend any of the annual conferences. This year I did budget for them in order to attend the conferences for a couple of staff members. Vice Chair Carollo: Well, on this one, you know, I need CPEs, but I don't spend that type of money for travel and so forth. I think it's quite high, you know, and it's a little unfair because with the other people, I really don't know. As a CPA, I do know and would know how much it City of Miami Page 91 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 would be to obtain CPEs and actually where the courses are and so forth. So there -- you know, I guess, you know, I'm -- I guess, in all fairness, I'm being unfair to you because I actually do know and I think it's high. Ms. Gomez: The amounts listed here are to attend the national and the annual -- the national and Florida -- the state and national conferences for the GFOA. Vice Chair Carollo: We'll discuss it further prior to the 27th. Ms. Gomez: Okay. Vice Chair Carollo: Okay. Commissioner Gort: My understanding is the surcharge, we paid 15 percent? Ms. Gomez: No. For the parking surcharge? Commissioner Gort: For the parking surcharge to collection. Ms. Gomez: The users pay the 15 percent. We pay 4.14 percent of what is collected. Commissioner Gort: Okay. And we pay that to whom? Ms. Gomez: To -- currently, we are paying that to the parking network, which is the administrator of our parking surcharge. That contract is set to expire at the end of this month. We have an item coming in front of you on the 23rd to award a new contract to a new company who won the bid through RFP (Request for Proposals) process. Commissioner Gort: Okay. Ms. Gomez: Their proposed fee is 3.95 percent, after negotiating. Commissioner Gort: Okay. Thank you. Vice Chair Carollo: Okay. Ms. Gomez, in postage, it's, you know -- you have proposed 66,000. I guess you mail most of the bills and so forth? Ms. Gomez: Right. Sixty-six thousand I do not believe is going to be enough for the current year. We tend to be somewhere upwards of 80 to 95,000. This is for all the dunning notices, all the reminders, all the CUs (Certificates of Use), all the BTRs, as well as AP checks that get mailed out, CAFRs that we have to mail out for -- to the grantors and agencies. Historically, we're about somewhere between 75 to $95, 000. I think there's some other savings within my line items that I should be able to make that up. Vice Chair Carollo: Thank you. If for Department of Planning -- Commissioner Gort: Where are we going? Vice Chair Carollo: Department of Planning. They have professional services of 123, 000. I just wanted to see what constitutes professional services. Ms. Sanchez: Carmen Sanchez, Department of Planning. Commissioner, I don't know if you're aware of the EAR (Evaluation and Appraisal Report) based amendment cycle. I know that Commissioner -- City of Miami Page 92 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: I'm sorry? Ms. Sanchez: -- Gort and Commissioner Sarnoff is aware of that process. It's basically a state mandate whereby the comprehensive plan is evaluated every seven years. A large portion of that 123,000 will go towards that process. This is something that's state mandated. It's Chapter 163 out of state statute. Vice Chair Carollo: It's a yearly thing? Ms. Sanchez: No, sir. It's every seven years and -- Vice Chair Carollo: Every seven years. Ms. Sanchez: -- we are -- the last time that we had went through the process was 2005. We have to adopt again by 2012, and we have to start at this point in time to be able to have everything in place to adopt by 2012. Mr. Migoya: This is the department that we actually dropped -- if you look at their salaries, we dropped about -- Vice Chair Carollo: I see it. Mr. Migoya: -- 20 percent. Ms. Sanchez: Right. Vice Chair Carollo: I see it. I'd like to see the detail for this year of what you spent in professional services. I see that you spent about 82,000, so I would like to get a detail -- Ms. Sanchez: Sure. Vice Chair Carollo: -- of that account. Ms. Sanchez: You have -- right. Be glad to provide that for you, but just keep in mind that this is every seven years, so -- Vice Chair Carollo: Well, that's exactly -- Ms. Sanchez: -- it's -- we can't really compare what we're going to be facing to this year because we would not have had that expenditure during the -- this year's budget. Vice Chair Carollo: Exactly, which leads me to believe that the whole 123,000 isn't because of that, so I want to see what else is -- Ms. Sanchez: We'll -- Vice Chair Carollo: -- you're spending on professional services. Ms. Sanchez: You'll see. We'll get you that detail. Vice Chair Carollo: So that's the reason for the detail. Ms. Sanchez: Yeah. We'll get you that detail. Mr. Migoya: Is Planning scheduled right now to meet with Commissioner Carollo and all the City of Miami Page 93 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioners to -- Ms. Sanchez: Yes. Mr. Migoya: -- update on (UNINTELLIGIBLE)? Ms. Sanchez: I'm sorry. We have meetings scheduled and your office is actually helping us in scheduling those meeting with everyone so we can brief them. Mr. Migoya: Okay. Just make sure that in the case of Commissioner Carollo, that you give him the update on the actual costs of these things and it's done well before the 27th. Ms. Sanchez: Absolutely. Vice Chair Carollo: Thank you. Thank you, Mr. Manager. In the Office of Solid Waste -- or the Department of Solid Waste, I'm sorry. Welcome back. Keith Carswell (Assistant Director, Solid Waste): Good morning. Vice Chair Carollo: Hey, on overtime, I see that even though you've reduced it -- you know, your budget is reduced from this year, why the 250 on overtime? Mr. Carswell: Well, the overtime is really -- because of the equipment that we discussed when we have equipment that breaks down -- Vice Chair Carollo: Right. Mr. Carswell: -- drivers can't complete routes so we incur overtime because the routes get taken care of later in the afternoon and so that's something that is systematic -- or symptomatic of our equipment challenges. Vice Chair Carollo: Is there any way to cut some of that overtime? Mr. Carswell: I think we've been managing it pretty well, pretty aggressively. What would help is that if we were able to get the additional equipment needed so that when -- we can replace the obsolete equipment and therefore not have vehicles go out of service. Vice Chair Carollo: Other contractual services. Mr. Carswell: Oh, and also, I'd like to add, in the last couple of months, we've actually cut overtime by about 30 percent. Vice Chair Carollo: How did you do that? Mr. Carswell: Again, very aggressive in managing the whole process when vehicles break down. We try to make sure that we pull people who finish their routes early. We've had some luck with some equipment being available, so it's just -- it's a daily challenge that we go through. Vice Chair Carollo: Okay. All I ask is, you know, try to curb it for next year. I see you budgeted 250. See if you can continue to curb it down. Other contractual services. What constitutes other contractual services? Mr. Carswell: Those are when we -- the tipping fees that we pay. Those would go to the Miami -Dade County and they also include Waste Management. And I'd like to add also that because we are changing the mix in terms of shifting more of our clean yard trash out to Virginia City of Miami Page 94 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Key, we will actually see about a half a million dollar savings in the tipping fees, which is projected. Vice Chair Carollo: Thank you. Mr. Carswell: Thank you. Vice Chair Carollo: And GSA (General Services Administration). Jose Camero (Director, General Services Administration): Good morning. Vice Chair Carollo: Good morning. Hey, overtime, again, I dealt with the last department. GSA overtime, 129, 000. Why? Explain to me. Mr. Camero: We service Solid Waste on the holidays. That's part of the overtime, so we do keep a crew there with the mechanics to service the trucks for Solid Waste. We also incur overtime -- Vice Chair Carollo: Hold on. And you know, excuse my ignorance, but you service them over the holidays -- Mr. Camero: There's -- Vice Chair Carollo: -- but Solid Waste doesn't work on the holidays, correct? Mr. Camero: Yes, they do. Commissioner Gort: They do. Mr. Camero: There's only two holidays they don't work. I believe it's Christmas -- Commissioner Gort: (UNINTET,TIGIBT,F). Mr. Camero: -- and Martin Luther King. Vice Chair Carollo: Really? I wasn't aware of that. Commissioner Gort: Yeah. Vice Chair Carollo: So Solid Waste -- no, but I thought we have no trash pick-ups on holidays. No? Am I wrong? I thought we had no trash pick-ups on holidays. Mr. Carswell: Keith Carswell, Department of Solid Waste. There are only two days out of the whole year that the Solid Waste Department doesn't work in terms ofMonday through Friday, and those are Martin Luther King holiday and Christmas. That's it. Vice Chair Carollo: So every other holiday you all work? Mr. Carswell: Correct. Vice Chair Carollo: Then rental and leases, I see it's more than double the amount from this year. So what was causing that to double or more than double? Mr. Camero: Give me a second. Vice Chair Carollo: Sure. City of Miami Page 95 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Camero: The motorcycles, the police motorcycle. Vice Chair Carollo: When you say the police motorcycles, could you elaborate a little bit more? Mr. Camero: The lease for the police motorcycles that we inherit, that we just obtained about a month -- Commissioner Gort: Right. Mr. Camero: -- ago, two months ago. Commissioner Gort: Yeah, we approved it. So it's charged to GSA and not to Police? Mr. Camero: Right, 142, 000. Vice Chair Carollo: Gotcha. That's right. Thank you. Mr. Camero: You're welcome. Chair Sarnoff Wait, wait. Stay there because you have an increase in repair and maintenance. What's the reason for going up repair and maintenance? Is that as a result of the fleet getting older? Mr. Camero: I'm sorry, deferred maintenance? Vice Chair Carollo: Repair -- Chair Sarnoff Repair and maintenance. You started out at two million three and you're ending up at three point two. Mr. Camero: The NAPA (National Automotive Parts Association) parts, there's an increase on that. It's about 2.4. You also have -- in repair and maintenance, you have all of the body shops. We get a car a day for body shops. Vice Chair Carollo: And Mr. Chairman, the 2.3 is what was budgeted. Their actual amount -- their actual expenditure is 3.1, and that's why I made that statement at the beginning with the Manager as far as what he thought about the budgeted amount and so forth. So if you look at the 3.1, which is what they've actually spent this year, and you see there is an increase. But I mean realistically -- Chair Sarnoff I gotcha. Vice Chair Carollo: It's in line. Commissioner Suarez: And -- Mr. Migoya: There were many times in which they budgeted things that were just not going to happen and this -- Commissioner Suarez: -- they -- Mr. Migoya: -- is one of those. Commissioner Suarez: -- spent 3.8 the year before so -- City of Miami Page 96 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff Is there a name for that in budgeting? Mr. Migoya: It's called low -balling. Chair Sarnoff Lowball? Commissioner Gort: My understanding also, you're changing your procedure for procurements. You're changing vendors so you can save money, is my understanding. Mr. Camero: Yes, sir. We're looking into establishing an in-house parts department for the cars. And we'll be going out with an RFP to buy cars. We're also going to tap into a tire contract with the State and that will be a savings. You're going to get that on the 16th, on Thursday. Commissioner Gort: Okay. Mr. Migoya: That's one we need to pass because that will save us money, so -- on September 16, so write that one down. Vice Chair Carollo: You're done? Chair Sarnoff Oh, yeah. I'm sorry. Yeah. Vice Chair Carollo: Thank you. Mr. Camero: Thank you. Vice Chair Carollo: Public -- Mr. Migoya: Not to blow his horn, but really, ever since Jose Camero and Rick Falero have gone in there, they took the number of vehicles that were in the body shop or for body shop and basically took it from the ridiculous number we had to basically nothing. The turnover on the maintenance for police vehicles is to the point that the union leaders on FOP (Fraternal Order of Police) congratulated them, and they said they couldn't remember the last time they ever congratulated GSA. So it tells you that -- and you walk in there and the place is actually clean, so I think Jose and Rick have done a great job and he needs to be congratulated for that. So thank you. Vice Chair Carollo: And for Public Works, I think I have a few questions. Nzeribe Ihekwaba (Director, Public Works): Yes. Vice Chair Carollo: How are you? Mr. Ihekwaba: I'm fine. Good morning. Vice Chair Carollo: Good morning. Hey, other salaries and wages, again, I'm seeing other salaries and I'm wondering why do we have a separate line item and not in regular salaries and wages? What makes this --? Ms. Dziedzic: Other salary and wages is for temporary salaries, part times and temps. Vice Chair Carollo: And other contractual services. What constitute other contractual services? It's getting late. Mr. Ihekwaba: There are a number of right-of-way maintenance services that Public Works is City of Miami Page 97 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 currently handling along Biscayne Boulevard, US 1, Martin Luther King Boulevard, as well as some additional areas that we routinely maintain as a result of agreements with FDOT (Florida Department of Transportation). The only ones that we rescinded last year, even though it was part of the last year's budget -- or current year's budget, was Coral Way. Vice Chair Carollo: That's a big increase though. I mean, you're going from 1.7 million to 2.5. Mr. Ihekwaba: No. Commissioner Gort: We acquired new responsibility with additional DOT constructions or --? Mr. Ihekwaba: Most of the additional constructions are being handled by Public Works staff in-house. Newly completed construction work typically goes through a one-year maintenance period before we inherit them. So currently, what we have are those ones that I've explained, US 1, Biscayne Boulevard, Brickell Avenue, Martin Luther King Boulevard, and some other minor arterial roadways within the City, which obviously will include areas with fountains and circles, traffic circles. Vice Chair Carollo: Okay, so 68 percent increase. But you know what, before the 27th, let's just get together and let's go over that. Mr. Ihekwaba: Okay. Vice Chair Carollo: Look at the details and look at why you really think it's going up so much and maybe we -- Mr. Ihekwaba: I'm not sure if -- perhaps you are combining some of the stormwater utility funds that are mandated for cleaning of canals citywide. Vice Chair Carollo: I don't know, but we need to get together to see why -- Mr. Ihekwaba: Okay. Vice Chair Carollo: -- you know, it's such a big increase, and maybe with the Budget director -- Mr. Ihekwaba: Okay. Vice Chair Carollo: -- you know. Mr. Migoya: One of the challenges -- we've met with Public Works on three different occasions -- is that every -- remember the projects (UNINTELLIGIBLE) that these do on a year -by -year basis to get it completed by the end of the year (UNINTELLIGIBLE) move on. So if you look at it, historically they've had a higher number of expectations than what they've done and they haven't completed it so we asked them to go back to the drawing board a couple of times and these are the number of projects that they feel comfortable that they'd be able to complete. So Mirtha, you want to add to that? Ms. Dziedzic: Additionally, Public Works is divided into two categories. There's the stormwater part, which are restricted funds and there's general fund dollars. They also have local option gas tax, but we don't have that breakdown isolated. These other contractual services is a combination of the stormwater contractual services and the general fund contractual services. Vice Chair Carollo: And that's something that I wanted to speak more to you about and so forth to get -- to under -- to have a better understanding, so I see why the funding and possible fluctuation and so forth. City of Miami Page 98 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Ihekwaba: We can provide you a breakdown of all the areas and contracts. Vice Chair Carollo: (UNINTET,TIGIBT,F) office supplies. Why $30,000 in office supplies? Mr. Ihekwaba: As you may well know, Public Works is responsible for the issuance of permits citywide for right-of-way improvements, so we handle all plans productions for our own contracts as well as for issuance of permits and subdivision improvements. I think the -- and also for stormwater utility improvements as well, which is in compliance with the NPDES (National Pollutant Discharge Elimination System) permits. I think the change is minimal. I think we had like a minor change from current fiscal year. Vice Chair Carollo: Current is 11,000. Mr. Ihekwaba: Yeah. Vice Chair Carollo: And a change to 30,000. Mr. Ihekwaba: No. Thirty thousand is a combination of both the stormwater utility funds as well as the general fund. Vice Chair Carollo: Well, I have office supplies here for $30,000. And you know, maybe whatl need to do with your department is get a breakdown of every account to see what's actually there or not. 'Cause I mean, if you're starting to break it up, no, this is that (UNINTELLIGIBLE), then, you know, I'm going to request the detail of each account to see what's in there. Mr. Ihekwaba: Yeah. I do have -- Vice Chair Carollo: I mean, that's the only way to really see what makes it up. Mr. Ihekwaba: Yeah. I do have the breakdown. Vice Chair Carollo: However, if I ask for the current year, it's going to show me the breakdown for $11,332 and you're requesting $30,000. You see where I'm looking at? Mr. Ihekwaba: Yeah, but I do have a breakdown for both stormwater utility funds, which is a trust fund, as well as for the general funds, and the total is about 30. Vice Chair Carollo: Okay. Like I said, we'll get together and we'll -- Mr. Ihekwaba: Okay. Vice Chair Carollo: -- run through it. Subscriptions. Why are subscriptions and memberships so high at 45? Mr. Ihekwaba: Subscriptions and memberships. Why is it high? Vice Chair Carollo: Yeah. It seems -- 45,000. Why? I mean, what --? Okay, let me rephrase the question. What constitutes 45,000 in subscription and memberships? Is itX'humber of employees that have some type of license? Is it --? Mr. Ihekwaba: Yes. We do have a number of employees that require licensure in order to perform their regular -- Vice Chair Carollo: I'm sorry? Repeat -- City of Miami Page 99 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Ihekwaba: We have quite a number of employees that require certification and licensure in order to practice their task. And, also, inclusive in that, I think there are also licenses as well as permits that we pay to FDEP (Florida Department of Environmental Protection), the NPDES permits. I think that's a substantial amount of money, about thirty something thousand every year, which is for the municipal separate storm sewer system. Vice Chair Carollo: I think, especially with you, I have a lot of questions on the different amounts and so forth. I think it's better just to get together and maybe with the Budget director and, you know, we go -- run through all of them. Sounds good? Mr. Ihekwaba: Okay. Vice Chair Carollo: Okay. Thank you. Mr. Ihekwaba: Thanks. Vice Chair Carollo: Public safety, Fire. Hey, Chief. How are you? Chief Maurice Kemp: Good morning. Maurice Kemp, Fire chief. Vice Chair Carollo: I mean, my big issue -- I mean, it's going to be overtime. Chief Kemp: Okay. Vice Chair Carollo: You know, how can we curb the overtime? Chief Kemp: Well, I can tell you what we did this year. As a part of the $14 million in concessions, we -- I was charged with saving 5 million from a $6.5 million line item, and we're coming in well under that. We're going to spend about 4.5 million. So we've curtailed the overtime. The biggest one is staffing overtime, and that's the one that we saved the most from. But you know, with 670 employees, there will always be some overtime, not just for putting people on trucks but for mechanics working, for inspectors working afterhours, part of which is reimbursed that goes into a different account. So we have overtime. Communications operators. Vice Chair Carollo: I mean, just keep -- overtime is pretty high. Again, I know you're working on it. It's just when I see, you know, $3.8 million going to overtime, you know, it jumps out at you. But I know you're working hard, as are the cops, as a matter of fact. The other thing was the FICA, which I discussed with the Manager previously, and it's not showing it on the line item. It's actually combined in the total amount of reductions in salaries, so that's why there was an issue with the FICA, which I will discuss with the Manager and Budget director to itemize it into a separate line item. And that's all I have, Chief. Chief Kemp: Thank you. Vice Chair Carollo: Thank you. Chair Sarnoff. I have a couple, Chief. Chief Kemp: Yes. Chair Sarnoff. Why are you -- why is it going up $800,000 this year in overtime? Chief Kemp: Well, to make it this year with the mandate that I had, we took extraordinary measures, which included up to two trucks out of service per day and that was with our City of Miami Page 100 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 bargaining unit working with us to do that; and other measures, such as visiting people at home when they called in sick and giving out certificates, so we had the carrot and the stick approach to curtailing overtime. So I don't know if we will be able to hold it to that level next year, but we plan to. I mean, we have -- we're having substantial retirements and that'll affect staffing, so you know, it's a very dynamic number. It's lower than it has been in recent history, but it's still a very dynamic number. Chair Sarnoff But you're anticipating 800,000 -- Ms. Thompson: Excuse me, Chair. I'm sorry. Chair Sarnoff -- but you're anticipating an -- Ms. Thompson: Thank you. Chair Sarnoff -- $800,000 increase? Chief Kemp: That's what we're budgeting. Chair Sarnoff Okay. And special pay, is that accurate? Chief Kemp: What part of it? Mr. Migoya: No, it is not because you have -- Chair Sarnoff I just wanted to make sure that it's not -- Mr. Migoya: It's the decreases that are impacted on that -- in that credit that you have, $11 million -- Chair Sarnoff Okay. Mr. Migoya: -- is salaries, steps and special pays. Chair Sarnoff It's all right. Just want to make sure. Okay. Thanks. Mr. Migoya: Did you -- Mr. Vice Chair, did you want to deal with -- ask him about -- over the next week or so be able to talk to you about the assignments of stations? Vice Chair Carollo: Yes. Mr. Migoya: Would you tell him? Chief Kemp: Yeah, please. Vice Chair Carollo: Yes. I don't have the whole breakdown, but as a matter of fact, I want to see ifI can get all the names, civilian and sworn, of everyone in your department and the present rank and classification and where they're assigned to, the number of sworn personnel who have marked emergency vehicles. I want to get the total number of sworn personnel who are assigned to emergency response field operations. Chief Kemp: Okay. Vice Chair Carollo: I want to get the total number of sworn emergency response field operation personnel who are on a shift at any one time of the day. City of Miami Page 101 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chief Kemp: Okay. Vice Chair Carollo: And if the number varies by shift, please provide info for each shift. I think you have shift and -- Chief Kemp: Yeah. We have three shifts and we try and keep them balanced, and the minimum staffing is the same on all three shifts. Vice Chair Carollo: If you could also provide the list of fire stations and how many personnel are on duty at any given time. You know what, also -- no. We'll leave it at that. Number of sworn personnel assigned to a shift schedule and number of sworn personnel assigned to regular work weeks. Chief Kemp: Okay. Vice Chair Carollo: Okay. Chief Kemp: Do you want me to meet with you personally or how do you want to do it? Vice Chair Carollo: Either way. Chief Kemp: Okay. I'll schedule a meeting with you. Vice Chair Carollo: Thank you. Chief Kemp: All right. Chief Miguel Exposito (Police): Good morning. Miguel Exposito. Vice Chair Carollo: Morning, Chief. Chief just like the Fire Department, I mean, the only issue I have is, you know, with the overtime, but I know from this past year, you cut it quite a bit. Chief Exposito: Yeah. We saved about $4 million -- Vice Chair Carollo: Yes. Chief Exposito: -- on overtime. Vice Chair Carollo: So that's commended [sic]. I mean, it goes without saying that's really commended [sic]. And you know, still, overtime is high so all I ask is, you know, work on it, but you know, it's commended [sic]. I mean, you did a very good job. By the way, just so everybody knows, for the fiscal year 2010 adopted budget, their overtime was 7.5. What they actually have expense in overtime is 2.6 million. So from 7.5 budgeted to 2.6, it's -- you know, it's really, you know, to be commended. Commissioner Suarez: It's about 66 percent -- Chief Exposito: Thank you. Commissioner Suarez: -- decrease. Vice Chair Carollo: Yeah. Commissioner Suarez: It's incredible. City of Miami Page 102 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: It's really -- Chief Exposito: Thank you. Vice Chair Carollo: -- to be commended. Commissioner Suarez: It's incredible. Mr. Migoya: Just -- Vice Chair Carollo: And then the only -- Mr. Migoya: Here's another thing is both Fire and Police, if you look at the actual expenses for that -- those departments in '09 versus '10, they each dropped $16 million, a $32 million drop for the entire public safety. Vice Chair Carollo: And that needs to be commended. I mean, you know, in all fairness, I know both chiefs have done a great job, you know. At the same time, you know, we -- at least I keep striving for excellence so that's why I want to say -- Chief Exposito: So do we. Vice Chair Carollo: -- keep cutting it and so forth. Chief Exposito: So do we. Vice Chair Carollo: You know, I truly mean it, but that doesn't -- that does not mean that your work so far has gone unnoticed because, in all fairness, it has not been unnoticed. And you know -- Chief Exposito: Well, I thank you. Vice Chair Carollo: -- both chiefs, I mean, in all fairness, need to be commended. As far as personnel, just like I mentioned to chief -- I actually spoke to Major Caceres and he already knows what I need and so forth. Chief Exposito: We do have a printout here that we can give you. It has a breakdown and an organizational chart -- Vice Chair Carollo: Perfect. Chief Exposito: -- and it'll tell you exactly where everyone is assigned. Vice Chair Carollo: Perfect. Thank you, Chief. Chief Exposito: Okay. Thank you. If you need any further explanation, we're certainly available to assist you with that. Vice Chair Carollo: Thank you. Appreciate that. Mr. Migoya: Mike, why don't you just set up a meeting with him and (UNINTELLIGIBLE) just like Moe's going to do to make sure that he's covered. Chief Exposito: Sure. Okay, we'll set up a meeting and have any other information that you may City of Miami Page 103 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 need. Vice Chair Carollo: Perfect. Thank you, Chief. Chief Exposito: Thank you. Vice Chair Carollo: Public Facilities. Madeline. Ms. Valdes: Good afternoon. Oh, not yet. We're getting there. Vice Chair Carollo: We're getting there. Hopefully, it won't be much longer. Real quick, Madeline. I got like two or three things, which are not necessarily out of line with previous years or this year butt need to inquire what they are. Professional services. Ms. Valdes: I knew you were going to inquire that. Madeline Valdes, Department of Public Facilities. Last year we had estimated a large number due to the fact that we were negotiating with the State for the state submerged lands issues that we had. Since then we've received notification from the State that they're willing to work with us and not establish any fees or any past -due fees so that's why this year we did not provide for those state fees. Vice Chair Carollo: Gotcha. Ms. Valdes: Also, we've been negotiating with our tenants to ensure that any future agreements, they're required for the -- they're required to pay the bulk of the state fee. Vice Chair Carollo: Good. Other contractual services, what do you have in there? It seems like a large amount so -- Ms. Valdes: Yeah. Every year -- Vice Chair Carollo: -- 400,000 -- 416,000 so -- Ms. Valdes: -- we have other contractual services in every one of our facilities, pest control. We have maintenance costs with respect to the elevators and so forth, the Manuel Artime. So that's those fees. It's all the contractual obligations we have with other companies for our facilities. Vice Chair Carollo: Thank you. And by the way, this is my first year so a lot of the questions is actually getting to know your department and seeing why it's such -- I don't want to say a high expense but why, you know, there's so much money going to this, like other contractual services, what is it and so forth. Ms. Valdes: I understand. Vice Chair Carollo: And repair and maintenance. I saw that. I mean, it's in line with previous year with what you spent this year and so forth, but I guess my question is -- well, I'll just ask it. Repair and maintenance, what does that constitute? I mean, why, more or less, 100,000 for repair and maintenance? Ms. Valdes: I got to tell you, our facilities are deteriorating a lot and we haven't been receiving funds for capital improvements, so we are doing minor repairs wherever we can, and we use that account for those type of repairs, and the proof is in what we just recently went through with Manuel Artime so -- Mr. Migoya: This is part of the reason why we need that million dollars. City of Miami Page 104 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: See, he throws his jab in there every time he gets a shot. Thank you. Ms. Valdes: You're welcome. Mr. Migoya: I just want to prove to you I'm awake. That's all. In another 30 minutes, we'll have to go drinking somewhere outside of Coconut Grove. Chair Sarnoff. But the good news is there's other places in District 2 to drink. Vice Chair Carollo: And for Parks, I mean, other than advertising costs, nothing jumped out at me. Oh, well, never mind. Something did. Advertising costs. I think it's pretty self-explanatory. It's just $20,000 so -- it went back to -- I saw a lot of advertising costs in different departments so that's when I inquired as far as NDA, the 25,000, where I was saying, hey, wait a second, if all the departments are advertising, why the NDA --? And l forgot what you titled it. More importantly, budget reserve, I see here that you have a budget reserve for next year of $200,000. Ernest Burkeen: That's for Virginia Key -- Ernest Burkeen, director of Parks and Rec. -- Trust. Vice Chair Carollo: When you say that's for Virginia Key Trust -- Mr. Burkeen: I provide the maintenance, cutting the grass, picking up trash, cleaning the bathrooms. Chair Sarnoff. What do they do? Mr. Burkeen: They operate their facilities. The -- they take care of the maintenance of the carousel, of the train, and they do the tolling that comes in the park. I cut the grass and pick up the trash. Chair Sarnoff. How many employees do they have? Mr. Burkeen: Pardon? Chair Sarnoff. How many employees do they have? Mr. Burkeen: I'm not sure. I can't answer that question. Chair Sarnoff. Who operates the park? Mr. Burkeen: Virginia Key Trust operates the park. Chair Sarnoff. But what -- who --? Mr. Migoya: What the plan, just so you understand, has been and we want to do as far as sunsetting the actual Trust itself is -- and this is what we discussed -- to allow the Virginia Key Trust to continue to have its own 501 (c)3 in which they run their own personnel to run whatever programs and things they're doing at the beach themselves. Ernest and the Parks people will continue to run the beach as far as the maintenance and everything else is concerned. We'll try to make sure that there's safety. There's actually some rip currents and issues around that area -- that part of the beach because it's so close to the Cut that we want to make sure that there's no swimming because it's a safety issue around that beach. So we would allow the Trust to be able to generate its own money so they can pay for their own people and will not be funded by the City in any way, shape, or form. And the only commitment from the City will be what the Parks is supporting. So then the current board of the Trust will become an advisory board to the Parks Department as it relates to Virginia Key. So that's what we're planning on doing and having it City of Miami Page 105 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 sunset, and we want to do it by September 30 so that we don't have -- so this will be the last year of reporting for Virginia Key Trust. Chair Sarnoff. I don't know. Maybe you might have piped that in a little earlier when their issue came up because -- I don't mean to be trite with you; it's just late -- but we're being asked to fund them for next year, so if you're sunsetting them, what are we doing? Mr. Migoya: The only funding we're asking you to do for next year is $106, 000 that's in the account. Chair Sarnoff. Well -- Mr. Migoya: And because it's money that they generated themselves. Chair Sarnoff. Well, I mean, he's over there looking for $8,000 and $10,000 and now he has maybe 106 -- I'm just curious. Mr. Migoya: The $106,000 is money that they've generated out of their own proceeds from the projects that they have. It's not money that the actual City has funded them. So the idea here is to allow them to take the $106, 000 to fund whatever they have, which is not going to be enough for what they've done in the past. Historically, the City has given up to a million dollars a year to the Virginia Key Trust. So in a sense, what we're doing this year is providing zero dollars; allowing them to take their money and moving it into the 501(c)3 and funding whatever they have to do for themselves. Mr. Burkeen: And they still have to operate that carousel and that train. I mean, those are two things that you have to pay attention to and take care of or it's going to cost you down the line. Chair Sarnoff. Okay. I guess the dollar is not a dollar is not a dollar. Commissioner Gort: Question -- wait a minute. This is the -- do you know the salaries $4 million? That's -- Ms. Dziedzic: Those are the dollars allocated for temporaries' position -- part-time and temporary positions for summer programs, after -school programs, pools and -- Commissioner Gort: Right. Ms. Dziedzic: -- et cetera. Commissioner Gort: And hopefully, with the -- we're trying to get our own funds from the Workforce. If we do get allocation from there, that should be able to alleviate this four million, right? Mr. Burkeen: If that happens. Commissioner Gort: If it happens, okay. Mr. Burkeen: We -- I mean, we've gone through this before and it never took place. Commissioner Gort: No. I understand. Mr. Burkeen: Because, I mean, summer camp starts at a specific time. I mean, we do a registration and we have to have people on board at that time. City of Miami Page 106 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Gort: No. I understand. But we're working on it, okay. Thank you. Mr. Burkeen: Okay. Mr. Migoya: Hang on, Ernest. One thing -- Vice Chair Carollo: Yeah. No, no. Hang on. Mr. Migoya: -- 'cause the question was asked previously -- 'cause your department was one that was underfunded last year from the summer programs. Do you feel with the budget you have right now, you've got funding for all the programs that you've got going on? Mr. Burkeen: We can run our summer program, but there in fact are going to be some changes. Mr. Migoya: Right. Vice Chair Carollo: Mr. Burket -- Mr. Burkeen: Burkeen. Vice Chair Carollo: -- Burkeen, I'm sorry. Mr. Burkeen: It's all right. Vice Chair Carollo: Aid to private organizations, you have $181,000. Could you elaborate on what's aid to private organization? Mr. Burkeen: I'm sorry? Ms. Dziedzic: Those are the contributions for Belafonte Tacolcy Center and for FOCAL (Foundation of Community Assistance & Leadership). Mr. Burkeen: Belafonte Tacolcy has operated a parks and rec program for twenty -some years and it's been a part of -- in and out of the department's budget. FOCAL has -- does a computer program at Moore Park, and they are both in the second year of a three-year contract. Chair Sarnoff So you fund them? Mr. Burkeen: Yes. Commissioner Dunn: So -- Mr. Chair. Chair Sarnoff Go ahead. You're recognized. Commissioner Dunn: So now, the park is actually owned by -- Belafonte is actually owned by the City. Mr. Burkeen: Owned by the City, but they do the programming. Commissioner Dunn: So describe the -- but it's a separate entity? Do they have like a lease agreement or how does that operate? Mr. Burkeen: We have a management -- Commissioner Dunn: Management. City of Miami Page 107 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Burkeen: -- agreement through Asset Management, and they operate the programs, recreation program, the football program, basketball, whatever that is -- Commissioner Dunn: So I just -- it almost seems as if there's a tie to the City in terms of -- now how much money do we -- what's that, 181? Mr. Burkeen: No. I think it's like 80 -- Vice Chair Carollo: A hundred and eighty-one thousand. Mr. Burkeen: -- 86,000 for one and -- Vice Chair Carollo: Well, the expenditure for this year is 234, 000, but he is budgeting 181,000 for next year. Commissioner Dunn: How much for FOCAL and how much for Belafonte do you --? Mr. Burkeen: Belafonte is $86, 675 and FOCAL is 94,452. Commissioner Dunn: Say that again. I'm sorry. I missed it. Eighty-six for FOCAL and ninety-two -- Mr. Burkeen: Ninety-four for -- I'm sorry. Ninety-four for FOCAL; eighty-six for Belafonte. Chair Sarnofff. Mr. Burkeen, are these 501(c)3's? Mr. Burkeen: Yes. Chair Sarnofff. And do you know what the top three employees make at FOCAL or Belafonte? Mr. Burkeen: We did have that. I don't have that with me, but they have been very responsive and they have conducted a great program. I mean, they fulfill their responsibilities. Chair Sarnofff. Are you satisfied with them? Mr. Burkeen: Absolutely. Chair Sarnofff. And you couldn't do it cheaper? Mr. Burkeen: Not cheaper. I'd have to add more staff and we've been -- I've lost 76 positions so I certainly can't do it. Okay? Commissioner Dunn: One last question. In reference to the South Florida Workforce, what was the discrepancy amount? Was it last year? Mr. Burkeen: The year before. They actually could not deliver the workers on time. By the time they delivered the workers, the summer was over with, and we really -- that's not something that we can really fool around with. We've got to have them -- the workers got to be ready to go that Monday. Commissioner Dunn: So we would actually on -- Commissioner Gort: You got to start working now. City of Miami Page 108 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Dunn: Yeah, we were on the limb, though, for how much? Mr. Burkeen: I don't remember the dollar figure. Commissioner Dunn: It was a large amount, though. Mr. Burkeen: Yes. Commissioner Dunn: About a million or something like that? Mr. Burkeen: It was a lot. I don't know what the number was. Commissioner Dunn: Okay. Mr. Migoya: Would you like to discuss Risk? Vice Chair Carollo: I think so. The only other department is Risk and -- Mr. Migoya: Right. Vice Chair Carollo: Risk is going to be salaries and workers comp. In workers' compensation, I'm seeing we're in line with 2009 this year, and next year you're budgeting for a slight increase in workers' comp. Why is that? Gary Reshefsky: Good evening, Commissioner -- good morning. Gary Reshefsky, interim director of Risk Management. Our workers' comp medical costs continue to escalate and -- which is why we budgeted a higher number. Vice Chair Carollo: All right. Commissioner Suarez: No. I think -- Vice Chair Carollo: (UNINTET,TIGIBT,F). Commissioner Suarez: Yeah. I was going to say -- no. I was just going to say is that it seems to be more in line with like -- again, this was under -budgeted last year and -- by $4 million, and that's very close to what the '09 number was and -- I mean, it's still a million dollars off. Why the extra million? That's a million and a half dollars, actually. Mr. Reshefsky: The increase for next year? Commissioner Suarez: Yeah. Mr. Reshefsky: There's continuing escalation in our costs, prescription drug costs, our larger claims as the claims develop. As an individual claim is not closed out and more claims come on, that number continues to grow, talking about lifetime claims. The heart claims are the biggest drivers on those. Commissioner Suarez: Right. But from last year -- it's actually gone down from last year. Your actual from last year has gone down slightly. Mr. Reshefsky: They're projections. Commissioner Suarez: For this year. City of Miami Page 109 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Reshefsky: Correct. Commissioner Suarez: For this upcoming year, 'cause that's $1.5 million right there. That's a big deal. The difference between your actual and your budgeted for next year is about one point -- a little less than one point four. I mean, if you just did -- if we just had the same expense next year that we have this year, we'd have an extra $1.4 million. That's our garbage fee. Mr. Reshefsky: Commissioner, these are typically very severe claims that are developing, and they will continue to develop next year's budget, and they're typically heart claims which are severe. Commissioner Suarez: But I don't know how you can anticipate a heart claim like for next year. Mr. Reshefshy: We have actuarial studies that provide that information for us. So there's backup materials which requires us to project those numbers, and I could get you that backup and share that with you, if you'd like. Commissioner Suarez: So it's a risk calculation is basically what you're telling me. Mr. Reshefsky: Yes, sir. Commissioner Suarez: And so if we're lucky, in essence, and it comes in at the same or similar to what we had this year, we could have an extra $1.4 million? Mr. Spring: Mr. Chair. Chair Sarnoff You're recognized. Mr. Spring: Larry Spring, chief financial officer. Commissioner, I think one of the things you need -- the full Commission needs to understand about workman's comp claims, state statutes with regards to this is particularly as it relates to health, heart bill claims, we have a state statute that basically says a public safety officer has anything cardiovascular -related, it is assumed to be work related and thus, I now have an individual who the City may be paying for the rest of their life for their high blood pressure pills, they may have a heart issue that develops later in life and it's not really about -- and you heard us discuss about having the pre -employment medicals and all those things to try to establish their medical history. Not to point fingers at cops but, you know, say you -- or a firefighter, but you may have an officer who smokes two packs a day and it's the stress of the job. But that's the assumption. That's the legal assumption that's made. So that's been a number historically that's been a little hard for us to hit. The other thing is you have claims. You have slip and falls. Last year we had a couple of Solid Waste workers get hit by a drunk driver out early in the morning. I think one of them -- one or two died. So, you know, you have these incidents. I know you're like, well, if it's the same as last year, it would be good, but I just want you to have the context that -- Commissioner Suarez: And I understand -- Mr. Spring: -- it is not -- and we're self -insured also, so we're paying -- Commissioner Suarez: Andl get all that. And I'm not -- and obviously, this is a very small snapshot. Mr. Spring: Right. Commissioner Suarez: You know, this is basically two years. I don't know if you went back three or four or five more years whether that would show a better -- City of Miami Page 110 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: The biggest impact is the heart bill which is a fairly new -- a recent phenomena [sic] of which that's the one that's really growing and that's where the biggest impact's going to be. We've sat down with Risk several times drilling through all these numbers and trying to bring these numbers -- I mean, this is actually the biggest runaway that we have right now as far as all the expenses within Risk. And there's another issue here which is around insurance, but we'll get to that in a minute, which Gary will get to explain. That's also an increase as well. Mr. Spring: The last thing that I probably want to put on the record on there is that we 're -- you know, department, Gary, is working very closely with the City Attorney's office to try to settle some of these claims. You know, we're going to have to make a payment but that will settle them for life, so it's a process that's an ongoing process, and we'll try to fine-tune over the next year. Commissioner Suarez: Mr. Manager, I just want to bring a couple -- I'm sorry, but -- 'cause this is actually -- this is a lot of money that we're talking about here. Mr. Migoya: Yes, it is. Commissioner Suarez: On the life insurance part right above it, I know that we changed our insurance plan, and that's part of the 6.9 savings, but we adopted a budget in 2010 of 39, and the actual cost under the old plan that is supposed to be $7 million more expensive, our actual costs were 33, so there could potentially be there another savings of 6 or $7 million. Mr. Migoya: No. Here's where the -- the $39 million would have been the same plan if we hadn't done anything to it. The 6.9 next to it is the fiscal strategy impact of the new health plan, bringing it down to 32 million. The difference -- the problem is that the 6.9 is a nine -month impact and the $39 million number is a twelve-month number. Commissioner Suarez: But that's not what I'm saying. What I'm saying -- Vice Chair Carollo: Right. Mr. Migoya: Okay. Commissioner Suarez: -- is our actual for 2009 under the old plan was 32 million. Our budgeted under the old plan was 39 million, but our actual was 33.6 million. So what I'm getting at is if we reduced another $7 million from our plan, then we should have potentially another $7 million of savings and -- Mr. Spring: Yeah. Commissioner Suarez: -- we should -- we may come in -- Mr. Reshefsky: Commissioner -- Commissioner Suarez: -- $7 million less. Mr. Reshefsky: -- Suarez, the number I think that you might be looking at doesn't have the employee contributions for premiums in there, which is an approximate $6 million number. So, for example, the reduction of our number to 32 million is actually -- will be 6 million less when we add back in the employee contributions to premiums for their health premiums and retirees. Commissioner Suarez: I'm not sure I follow. Well, what I'm looking at is just a straight line across. Your actual expenses, your department's actual expenses were 32 million for '09. For '10, under the old plan, you adopted a budget that said we're going to spend 39 million. You City of Miami Page 111 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 actually spent 33 million, so that was a difference -- Mr. Spring: That number that -- Commissioner Suarez: -- of 6 -- Mr. Spring: -- you're looking -- that you're comparing to has retiree health care payments offsetting it, so the current year number is actually lower than the -- it's been offset by retiree receipts. Those retiree receipts in the '11 budgeted are budgeted in other revenue, I believe -- Ms. Dziedzic: Miscellaneous. Mr. Spring: -- miscellaneous revenues on the revenue side, so they're not -- it's not offsetting it. It's in the -- on the revenue side of the income saving, if you will. Commissioner Suarez: I'm lost. Mr. Spring: You're not following? In the revenues -- Chair Sarnoff. They're accounting for the differential in a different section. Commissioner Gort: Yeah, the revenue. Commissioner Suarez: We can talk about it afterwards. Mr. Spring: Okay. Commissioner Suarez: It's not something that -- Mr. Spring: It's -- what you're -- the $6 million or a good portion of it that you're seeing that should be more savings -- Commissioner Suarez: Right. Mr. Spring: -- it's really not savings but rather an accounting entry that was done in the current year. And we can -- we'll provide you with that detail so you can see it. Commissioner Suarez: Yeah. I need -- Mr. Migoya: Just so you know, what -- exactly what you're doing is exactly what I did three weeks ago thinking I had another $6 million worth of savings and we went through this and didn't get it. We're happy to explain it to you, but -- Commissioner Suarez: I appreciate it. Mr. Migoya: -- it is (UNINTELLIGIBLE). Commissioner Suarez: I mean, it's just -- I'm doing what you did, you know. Mr. Migoya: I get it. Commissioner Suarez: I'm going through it and I'm going wow, this -- Mr. Migoya: I get it. That's the same -- City of Miami Page 112 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Suarez: Right. Mr. Migoya: I did the same analysis you're doing right now. Commissioner Suarez: I got you. In terms of -- Mr. Migoya: There's no comparables -- the retiree revenues is included here and it -- for the '09 and it isn't in the '10 -- Commissioner Suarez: But we could potentially save 1.4 million on the workers' comp claims. Mr. Migoya: Assuming that the -- Commissioner Suarez: I just want to know what I got to be pulling for 'cause I'm already pulling for my colleagues not to have a runoff so -- Mr. Migoya: No. The problem with the 1.4 is the fact that you have the heart bill, which is actually starting to skyrocket, and that's where the expectation from an actuarial standpoint of what's going to happen in workman's comp because of the heart bill going to have additional expenses and the amount of claims that we currently have under the heart bill that have yet to be resolved and then the escalation to that. So that's the other one. And it's not that I'm defending what they're doing. I'm actually telling you what I went through with these guys over the last two to three weeks of exactly the same issues. And then there's another one -- I don't want to take you off of these two because these two are very important. The other one is the insurance, which is an extra million dollar increase, but you're going to want to have an explanation and you need to get an explanation on that one as well. Mr. Spring: As well as the litigated claims. Commissioner Gort: Question. The additional professional services -- the additional contract for professional services, 2.6, what is that? Mr. Reshefsky: Commissioner, the professional services are the line item for our outside TPA (Third Party Administrator) consultants and brokers combined for all types of services that are in the Risk Management Department from employee benefits to TPAs to property and casualty brokerage. The biggest driver there is the TPA costs for workers comp and liability. Commissioner Gort: Is this part of the Gallagher Bassett contract? Mr. Reshefsky: Gallagher Bassett is included in that line item. Commissioner Gort: And I understand we pay about $1.2 million and at one time we used to do that ourself [sic] in-house. Mr. Reshefsky: Correct. And we outsourced the claims handling for our workers comp and general liability claims, and we're in the process of evaluating that entire procedure and how it's done. And my expectation is that we'll be able to scale back the services that we're outsourcing in those certain areas. I don't want to get into too much detail 'cause there's -- I think there's a cone of silence on -- Commissioner Gort: Okay. Mr. Reshefsky: -- there's a solicitation out so I can't get into much details -- Commissioner Gort: All right. (UNINTET,T IGIBT ,F) detail -- City of Miami Page 113 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Reshefsky: -- of the plans but -- Commissioner Gort: -- but I remember in the past, we used to do that in-house and we had 24-hour services. My understanding right now, they have services from 9 to 5 and on weekends they can't -- they have to go through a recording. You have to leave a message and somebody (UNINTELLIGIBLE) something. I think if we could save money, we should bring it back -- Mr. Reshefsky: We're looking at -- Commissioner Gort: -- and do it ourself [sic]. Mr. Reshefsky: -- some options that -- Commissioner Gort: We were very efficient when we were doing it. Mr. Reshefsky: -- allow us to handle some claims, but there are certain claims that we don't want to handle within the City because of -- you know, certain things we want to have separated and handled by a third party. Commissioner Gort: I'd like to get a breakdown of that. Mr. Reshefsky: I'm happy to work with you on it. Chair Sarnoff All right. I have a question for you just real quick. And it's actually the insurance. You went from -- somebody had adopted a budget of $45 million for insurance. I guess that was us, me, and then you only spent 10 million? Unidentified Speaker: That's not -- Chair Sarnoff Am I reading it wrong? Ms. Dziedzic: No. That's the correct -- Chair Sarnoff It says insurance, 45, 269, 000. Ms. Dziedzic: Originally group insurance costs and the liability insurances were combined in the same line item. That's incorrect and you will have a correct breakdown. The original budget -- the original adopted budget for liability insurances for the current fiscal year was $5.6 million and the life and health insurance was $39.6 million. Chair Sarnoff So the 45 million is just an incorrect entry? Ms. Dziedzic: It was recorded incorrectly. It was budgeted incorrectly -- in the incorrect line item. Chair Sarnoff Did you -- are you projected to spend 10, 631, 000 -- Ms. Dziedzic: That's -- yes. Chair Sarnoff -- this year? And you're anticipating insurance to go up by --? Ms. Dziedzic: A million dollars. Chair Sarnoff A million dollars. And -- oh, 'cause you found yourself to be underinsured? City of Miami Page 114 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Dziedzic: Urn -hum. Mr. Reshefsky: Commissioner Sarnoff, I can tell you that there's a lot of things lumped into a line item that says insurance that may not actually be what I call insurance, which is risk transferred to an insurance company. Claims are also -- some of our self -insured claims are bundled into that number. There is a -- there are some areas of risk transfer that were -- that we can -- that we need to do a better job of and one of those is excess insurance for our workers comp and our liability. The City is not currently insuring that. They have in the past, but this past year they didn't buy that insurance. So that's the biggest need there for another million dollars is to purchase excess insurance for our workers comp and our liability. Chair Sarnofff. What do you excess insure at? What is -- what's your ha --? Mr. Reshefsky: The current retention in the past has been $500,000. Chair Sarnofff. So we stay self -insured for 500; anything over 500, we have an excess carrier? Mr. Reshefsky: Not this year, except for police professional. But in the past, that was the retention that we had. Chair Sarnofff. And that is your recommendation for moving forward? Mr. Reshefsky: We're going to go out into market and look at different retention levels going forward, but we're budgeting a premium number so that we'll be able to go into the market and get options for the City. Chair Sarnofff. Have you ever considered a quota share agreement? Mr. Reshefsky: In what way? Chair Sarnofff. With an excess -- Mr. Reshefsky: Oh, to share as we go up? Absolutely. That's an option that we would look at. We -- it just depends what the market wants to entertain and for what price. And there were issues last year where the market was not favorable andl think the City made a decision not to carry the insurance because the terms they got back from insurance companies just weren't favorable. Chair Sarnofff. Are you only insuring in the American market or are you looking overseas? Mr. Reshefsky: We would go out to the global market so reinsurers in Bermuda, the London market, you know, anybody that is in the municipalities base, and we're working on that renewal now. That's in October, so we're -- we have a long list of markets and we're actually going to be meeting with underwriters in the next couple weeks and introducing our new staff to them as well as the City Manager. Chair Sarnofff. Okay. Thank you. Mr. Reshefsky: Okay. Thanks. Chair Sarnofff. All right, gentlemen, are we done? Mr. Migoya: The question is we still have the revenue. I don't know if anybody has any questions around the revenues. I was just asking the Commissioner if he had -- because we spent City of Miami Page 115 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 a lot of time on the revenues on Saturday. I don't know where you guys are all at on revenues. Chair Sarnoff We figured revenues were about four hours, right? Well, we did the expenses, now we got to do the revenues, right? Mr. Migoya: We did the expenses is what we -- Chair Sarnoff So it's a two-sided equation, is it not? Mr. Migoya: I certainly hope there is. Otherwise, it's pretty ugly. Chair Sarnoff Does anybody want to go through any further line items on the expense side? Mr. Migoya: And we have to do the waste fee too. Chair Sarnoff I gotcha. This was just a discussion item, right? Mr. Migoya: Right. Vice Chair Carollo: Right. Chair Sarnoff So has everybody felt like they have discussed the actual budget sufficiently? I see the City Clerk shaking her head. I think she thinks we did an adequate job. I could see the Manager wanting a little more. All right. So that's a discussion item. We're done with that correct? Fair enough, everybody? Vice Chair Carollo: With the expense side? Chair Sarnoff Are we going to do revenue? No, I don't mind, but let's do it. Vice Chair Carollo: I mean, look -- Mr. Migoya: Frankly, revenue should not take that long, I don't think. Vice Chair Carollo: -- in all fairness, you know, on Saturday I went through the revenues with the Manager. The main thing that I was looking for was, you know, reasonable in the estimates. You know, we could have him go through it, you know, but that's what I was looking for, are his revenue reasonable and so forth. But -- Mr. Migoya: Would you like --? If you'd like, we can go through the levels of the revenues. Mirtha can go through it and tell you what they are. Obviously, in this includes the fiscal strategy increases, some of which you approved earlier today when you did the fee. So if we can go through that and if you have any questions as we're going through it, you're welcome -- maybe that's the way to deal with it, if it's okay with you. Vice Chair Carollo: I mean, some of the things that -- I'll just highlight some of the things that we touched upon when I went through revenues with the Manager. The transfers in -- actually, the fines and forfeiture. I saw there was a big, you know, $10 million from fiscal strategies andl asked what that was about. It was actually from the red-light cameras -- Mr. Migoya: Correct. Vice Chair Carollo: -- $8 million. I asked reasonableness of $8 million. They provided some figures, I think, provided by ATS (American Traffic Solutions) -- is that the company? City of Miami Page 116 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Migoya: They were ATS -- Can we talk about it now? I mean, if -- we're going through this on the 16th. Vice Chair Carollo: I -- Mr. Migoya: I guess I granted it, right, so that means -- no? It can't be -- Vice Chair Carollo: No. Chair Sarnoff. Yeah. The cone of silence is over. Commissioner Gort: Cone of silence. Chair Sarnoff. The cone of silence is over. Commissioner Gort: No, it's not. Mr. Migoya: The cone of silence is off. Chair Sarnoff. Yeah. Mr. Migoya: We're coming to you on Thursday -- Commissioner Gort: Wait until it come in front of the Commission. Vice Chair Carollo: On Thursday. Mr. Migoya: -- we're coming to you tomorrow with a recommendation as to who the winner will be on the contract. That -- we have at this point their recommendations and also tested by our own as to what they look like. We're looking at 32 cameras. As part of that, I will tell you that the number that we're looking at is to implement 40 on January 1 and another 20 on March 1 for the same 19 intersections. So we believe that that $8 million number that we have is a conservative number. Chair Sarnoff. What are you going to do if it's declared unconstitutional? 'Cause I got to tell you -- and I'll make this bet with you right now --I'll bet you dinner at your restaurant of choice, it's declared unconstitutional within the next three months. Ms. Dziedzic: Then no capital. Mr. Migoya: You may know -- obviously, you may know more about the legal side than I do, but it's -- I'll take that bet. Why not? Chair Sarnoff Okay. Mr. Migoya: We'll have dinner anyway. Chair Sarnoff. So what fiscal strategy are you going to come up with alternate to a $8 million loss? Mr. Migoya: If we have that issue, obviously, even more reason for us to beg you to consider the solid waste fee, among other things. Chair Sarnoff. All right. Anything else you want to go through on revenue side? City of Miami Page 117 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: No. I actually went through it with him on Saturday and we have another crack at the apple. So on the 27th, if, you know, we should have any further questions, so forth Chair Sarnoff All right. So -- Vice Chair Carollo: -- you could ask -- Chair Sarnoff -- everybody is okay with leaving this issue right now? Vice Chair Carollo: Leaving this issue right now, yeah. I mean, I think we had a good start. Mr. Migoya: Okay, so -- Chair Sarnoff Good start. Mr. Migoya: -- again, you understand -- you -- we discussed the capital expenditures and how we balanced the budget right now based on where we are with these numbers. [Later..] Priscilla A. Thompson (City Clerk): No, no, don't move. Chair Sarnoff We have a motion -- Ms. Thompson: Don't move. Julie. Julie O. Bru (City Attorney): Before you adjourn, on the budget that you discussed today, we do need a motion adopting a tentative budget so we can advertise that tentative budget for final consideration on the 27th, so if could have a motion on that tentative budget. Chair Sarnoff Do we have a motion? Vice Chair Carollo: On the budget as what we have? Chair Sarnoff Yeah, the tentative one that we just saw. Vice Chair Carollo: Sure. Commissioner Suarez: So move. Commissioner Dunn: Second. Chair Sarnoff We had a motion by Commissioner Suarez, second by the Vice Chair. Any discussion, gentlemen? Hearing no discussion, all in favor, please say "aye." The Commission (Collectively): Aye. Chair Sarnoff Do we have a motion to adjourn? Commissioner Suarez: Motion to adjourn. Chair Sarnoff We have a motion by -- Vice Chair Carollo: Second. City of Miami Page 118 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff -- Suarez, second by the Vice Chair. All in favor, please say aye. The Commission (Collectively): Aye. BH.4 DISCUSSION ITEM 10-00935 Downtown DISCUSSION OF THE PROPOSED MILLAGE RATE AND TENTATIVE Development BUDGET FOR THE MIAMI DOWNTOWN DEVELOPMENT AUTHORITY. Authority PERCENTAGE DECREASE IN MILLAGE OVER ROLLED BACK RATE RESPONSE: NINE POINT FORTY TWO PERCENT (9.42%) 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 10-00935 DDA Millage and Tentative Budget.pdf 10-00935-Submittal-Downtown Development Authority. pdf 10-00935 Millage and Final Buget 9-27-10.pdf 10-00935-Submittal-Employee Count Document.pdf DISCUSSED Chair Sarnoff Let's move over then to BH.4. BH.4 is the DDA (Downtown Development Authority). Priscilla A. Thompson (City Clerk): Chair, ifI might ask a question, please, so I can save some money. May I ask if anyone else in the ordinance [sic] will require interpreters? Is there anyone else in the audience who would require a Spanish or Creole interpreter? The City Clerk's comments were translated by Spanish interpreter Paul Seligman and Creole interpreter Paul Archer. Ms. Thompson: Thank you, sir. Chair Sarnoff Thank you. Ms. Thompson: Thank you. Chair Sarnoff Then we can release them then? Ms. Thompson: Yes. Chair Sarnoff All right. Saving the taxpayers some money? City of Miami Page 119 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Thompson: Yes, sir. Chair Sarnofff. Okay. All right, you're recognized for the record, Alyce Robertson. Alyce Robertson: Alyce Robertson, executive director of the Miami Downtown Development Authority. I'm here to present the public hearing item on our millage, which is a decrease over our rollback rate of 9.42 percent. The DDA has collected .5 mills for -- since 1965, since its inception. The actions by the City Commission here today are amend the budget, if necessary; recompute the proposed millage rate, if necessary; adopt a tentative millage rate; and adopt the amended tentative budget. This year the property taxable value fell from 11 billion in the DDA district to 9.8 billion. This means that we will be generating 4.9 million in ad valorem revenue. Our board started meeting about our budget back in March to discuss the implications of what they saw going on in the real estate market and all of the appeals that were being done. And so our finance committee directed the DDA staff to budget our revenue; instead of at the historical level of 88 percent of the budget of the revenue, that we were going to be budgeting at 80 percent of the revenue. In order to anticipate that there might be what would be refunds to people 's taxes and since we're self-supporting and we have to operate within our own budget, we wanted to be able to anticipate any kind of decrease in those values as they came forward. That means that 3.9 million is available for the fiscal year '10/'11 budget. In addition, the DDA finance committee directed staff to propose a -- an additional $700,000 in a contingency reserve for that property tax issue alone. We have been working to cut back on DDA staff and salaries. And in fact, in the last two years, we have reduced staff and salaries by 21 percent in actual cash. We also -- at the direction of the board, one of the things that was -- when I came to the DDA, one of the things that they wanted us to do was to get the money that was in the cash reserve out into the street to be making immediate improvements to what's the DDA district, and so we have been putting more money in the streets. Our estimated fund balance here at the end of the year is 4.1 million. We anticipate that we're going to be putting money towards historical landmarks, which includes not only the freedom tower but also we'll be entering into a program with Gusman to help support programming at Gusman, parks in open space, street furniture, signage and weigh finding, and transportation projects. We also have an expansion of the downtown enhancement team and the Ambassador program. So I believe Al West is going -- from our board -- the treasurer of our board that would like to present some additional points. Chair Sarnofff. You're recognized for the record, Mr. West. Commissioner Gort: Mr. Chairman. Chair Sarnofff. Yes, sir. Commissioner Gort: Point of clarification. I think it be important that you explain how you arrive to your taxes and who pay for your taxes. Alvin West: Yes. Commissioner Gort: I think it's important for people to know. Mr. West: Right. My name is Alvin West. I'm treasurer of the DDA. Commissioners, Mr. Manager, the Mayor, the most important thing here is that to understand that the DDA is an independent taxing district and it represents all of the business owners in the taxing -- in the district, Downtown Development Authority District. We have approximately 15 members on our board who represents all of the stakeholders in downtown Miami. The taxes that we collect based on a millage that is levied to the stakeholders in downtown Miami. I can tell you that of all of the taxes in Miami, $31 billion, approximately 31 percent, or 11 billion, are collected in downtown, and this is from the stakeholders who represent Downtown Development Authority. The other thing that has happened in downtown is since 2001, we have approximately an City of Miami Page 120 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 increase of 20 -- from 20,000 residents up to 70,000 residents as of 2009. We have also increased our voters by 52 percent from 2007 to 2010. Relative to the number of residences [sic] moving into downtown, we expect that number to go to 85,000 by 2014. As we look at the issues before us today, the budget that the DDA has put together is based on one of productivity. The dollars that we take in, we put into use, we put on the street. We, the stakeholders and the board, reviewed back in 2008 the strategic initiatives of the Downtown Development Authority. What we saw was that we needed to have a new order. In that, we brought in Alyce Robinson [sic], who essentially turned the DDA around. We are now putting more people on the street. We passed out to you a handout which will outline some of the activities that we have incurred over the last two years. Since 2008 we had -- we have reduced our employee count from 21 to 18, down 14.6 percent. We have shifted resources from administration to projects out on the street. That represents a 52 percent shift of resources from administration out to the street. Our salaries and fringe benefits, those have gone down 21 percent since 2008. And more importantly, as we look at -- for every dollar that the DDA gets, 77 cents is going out to the street and only 23 cents are being spent on benefits and salaries. That's on page 4 of the handout that we just provided you. The last page of the document also shows what an all -in representation of salaries and benefits would be. If we look at a salary of $40, 000 for a person at the DDA, the all -in for that particular person would be $50,800. That's against, if we use a comparison with the City, 56,800. So what we have done is try to manage and be good stewards of our stakeholders' dollars. We are a partnership. We work very closely with the City, with the County, with our stakeholders downtown. The board is very prudent in the dollars that -- in the way that they spend those dollars. I would also like to share with you another document, which is on the last page of the booklet that you received from us. One of the things that's very important for us is to leverage the dollars. That is, if we get a dollar, we need to make sure that that dollar goes as far as it possibly can. Andl can tell you that over the last year and a half, for every dollar that the DDA has received, it has leveraged that 12 times. In other words, for every dollar we put into a project or projects in downtown Miami, our partners have put in 12. So we're making sure that we get the best bang for the buck, that the downtown is moving forward. Andl can tell you that it is a testament to the Commissioners, the Mayor, and more importantly, the person who's on the street every day, Alyce Robinson [sic], who has made a big difference in downtown. And with that, I have to ask you that -- to pass the budget that we have brought in to you today, and we ask that you continue to work and support the DDA and your downtown. And I'll leave with this one thought. A rising tide lifts all ships, and every dollar that we put into downtown means that the whole City ofMiami is going to be that much better off. So we ask you to partner with us moving forward to make a difference not only for downtown but for the citizens ofMiami. Thank you. Chair Sarnoff Thank you. Commissioner Gort: Mr. Chairman. Chair Sarnoff Yes, sir. Commissioner Gort: What I really wanted you to explain to the -- Mr. West: Yes. Commissioner Gort: -- people is that this is a tax that the property owners in that district imposed themselves. Mr. West: Right. Commissioner Gort: Okay. I want to make sure everybody understands that. Mr. West: It is. It is. It is a -- in other words, every dollar that comes into the DDA is from the DDA stakeholders, taxpayers within the DDA district. City ofMiami Page 121 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Gort: That they voted themselves to establish that and pay for it themselves. Okay. Mr. West: That's exactly right. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Yes, sir. Vice Chair Carollo: It's my understanding that the one thing we have to vote on today is their millage. Chair Sarnoff Correct. Vice Chair Carollo: And then as far as their actual budget, the expenses and so forth, we can do it today or it could be deferred to next meeting, just like, in essence, what we're doing with the City's budget. And you know, with all due respect -- I know you are the Chairman of Bayfront, so it's definitely done with your -- Chair Sarnoff No. You're the Chairman of Bayfront. I'm the Chairman of DDA. Vice Chair Carollo: Yeah, I'm sorry. Chair Sarnoff But I really like the -- I like the Bayfront. Vice Chair Carollo: I had Bayfront on my mind. You're the Chairman of the DDA. I will even move -- and l know we have to take it -- you know, I don't know if -- it's actually BH S, but I will even move for the millage, but you know, I respectfully request that as far as the expenses and so forth, we move it to next meeting. I asked Ms. Robertson some questions and -- which I know she sent today, but I haven't had a chance to actually really look through it and so forth. Chair Sarnoff Dr. Montoya, I know you came -- Rolando Montoya: Yes. Chair Sarnoff -- and you may not be able to come again, so why don't you address the Board. Mr. Montoya: Yes. I'm Rolando Montoya, the provost ofMiami-Dade College and a member of the board of Downtown Development Authority. I'm here basically to support the millage for DDA and also to support the budget that was approved by the board. I want you to be assured that the board was very careful. The finance committee was very careful and the board too. We were very conservative in our analysis at making sure that what we were presenting to you was the best quality budget. Traditionally, DDA has been budgeting, estimating collection of 88 percent of the assessed taxes, but this year we wanted to be more conservative, and we are doing it with an estimation of only 80 percent of collections. In addition, we have reduced the budget by 11 percent in comparison to what we were budgeting in the prior year. And we have been extremely careful in making sure that we minimize administrative expenses and we put on the streets ofMiami -- downtown Miami as much resources as we can. We believe that it is very useful for this City to protect what DDA is doing. The structures that have been created, we are really contributing to attract business and residents to downtown Miami, and that is going to have significant effect on the prices of property in downtown Miami that will increase the tax base for this City, which will make your budgetary decisions a lot easier in the future years. Therefore, I encourage you to approve what we have submitted to you, hopefully today, but if you have to postpone it to the next meeting, whenever this board -- this Commission is ready to act. City ofMiami Page 122 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 But I want you to know that I'm endorsing this and I feel very comfortable with that budget in the same way that all the members of the board are. Thank you so much. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. You're recognized. Vice Chair Carollo: Thank you. And the reason why Bayfront Park was on my mind is because I have to admit, when you see what I'm looking for from a budget, refer to Bayfront Management Trust, and I'll give you an example of what I'm looking for. You asked -- I actually requested additional information, which you have provided, andl don't even know if the other Commissioners have provided. But even in additional information, when I look at office and admin (administrative) expense, I see an expense of 127, 000. I would like to see the breakup of that. When I see rent and parking, $306, 000, I would like to see the breakup of that; professional services, what is the breakup of that. And I'm -- and like I said, I'm not trying to be difficult; just -- if you look at what Bayfront Park Management Trust has done, you will see they broke up every one of their items and we could itemize and see exactly what's grouped into these -- so that's why -- I apologize, but that's why I had Bayfront Park Management Trust on my mind and Chair Sarnoff. No, not a problem. Vice Chair Carollo: It's a Freudian slip. Chair Sarnoff. Not a problem. I -- like I said, I think that may have been my favorite board that I ever got to be on. BH.5 ORDINANCE First Reading 10-00936 Downtown AN ORDINANCE OF THE MIAMI CITY COMMISSION, WITH Development ATTACHMENT(S), RELATED TO TAXATION, DEFINING AND DESIGNATING Authority THE TERRITORIAL LIMITS OF THE DOWNTOWN DEVELOPMENT DISTRICT OF THE CITY OF MIAMI, FLORIDA; FIXING THE MILLAGE AND LEVYING TAXES IN SAID DOWNTOWN DEVELOPMENT DISTRICT FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011, 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 of Miami Page 123 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 10-00936 FR/SR MEMO DDA.pdf 10-00936 FR/SR CERTIFIED COPY.pdf 10-00936 FR/SR PRE LEGISLATION MASTER REPORT.pdf 10-00936 FR/SR PRE LEGISLATION.pdf 10-00936 FR/SR CERTIFICATION TAXABLE VALUE.pdf 10-00936 FR/SR MILLAGE LEVY CALCULATION.pdf 10-00936 FR/SR LEGISLATION.pdf 10-00936 FR/SR EXHIBIT.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Suarez, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II Chair Sarnofff. Why don't we do this, we -- we'll see if we can get a motion then for BH.5. Commissioner Suarez: So moved. Vice Chair Carollo: So moved. Commissioner Suarez: Second. Chair Sarnofff. We got a motion by the Vice Chair, second by Commissioner Suarez. Any further discussion, gentlemen? Commissioner Suarez: Mr. Chairman. Chair Sarnofff. It's a public hearing. Commissioner Suarez: Mr. Chairman. Chair Sarnofff. Oh, I'm sorry. I didn't see you. Commissioner Suarez: It's okay. Chair Sarnofff. Go ahead. Commissioner Suarez: I have to scream out here on this side. Chair Sarnofff. I -- you're right, on my right corner. Commissioner Suarez: I just want to say that I really commend the DDA's (Downtown Development Authority) efforts on its renaissance of downtown. I know it's an ongoing process. It's not something that's going to happen overnight, but they have my support in helping them continue on that renaissance process. I'd like to commend the Chairman, as also the Chairman at the Bayfront Park Management Trust; have both been very active boards in trying to reshape the City and do exactly what you said, which is revitalize the City in an area where everyone benefits, and it's a trickle -down effect from Brickell, you know, to Mary Brickell, downtown, and hopefully it's going to continue to extend northward and it is extending northward. So I just wanted to put that on the record. Chair Sarnofff. And just so you know, I mean, I heard my colleagues loud and clear when they had the excitement of LeBron James and Chris Bosch and Dwyane Wade, and we formed a committee within a week of that announcement, and they have walked the streets twice, and they have identified 30 or 40 issues. Alyce Robertson: More than that. City of Miami Page 124 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff. More than that? That they are actually trying to get -- everybody was there. The County was there, the -- FDOT (Florida Department of Transportation) was there, City was there. Ms. Robertson: The Mayor was there. Chair Sarnoff. The Mayor was there. And we didn't just take it as, you know, I hear you guys, and yeah, you know, it's going to be, I think you said, 52 or 42 Super Bowls. Forgive me; I don't remember how many games they play, but I'm trying to factor in the playoffs. Vice Chair Carollo: Eighty-two, plus the playoffs. Chair Sarnoff. No, no, no, but home games. Forty-one, I think, plus the playoffs, brings it to 52. Fair enough. The point being there are a lot of a lot of games. I could tell you that one of the things they're planning is a -- what do you guys call that? -- tailgate party -- Carlos A. Migoya (City Manager): Tailgate party. Chair Sarnoff. Yeah. -- on the first game of the year, and we're going to try to get a big expanse out there and have a tailgate party, andl bet you, you'll have more people at the tailgate than you probably will have in the game, although I am working on your tickets. I'm just kidding. But you know, I just want you to know that they -- right, right. I'm just teasing you, too. But I want you to know that there was work in place right away. We didn't just say, well, you know, what can we do, and we said let's get some achievable results that can happen by October/November of this year. So with that said, I just want you to know that we are not -- we're not that slow -moving. We try to be as agile as we can. Commissioner Gort: Mr. Chairman. Chair Sarnoff Yes, sir. Commissioner Gort: IffI may, I think it's important for the general public to understand that DDA, my understanding, it was created about 30 years ago? Ms. Robertson: 1965. Commissioner Gort: 1965, when it was only maybe two buildings within downtown. And the reason DDA was created, it was created by the property owners within downtown within that geographical area to do something to bring people to downtown, to bring school, to bring residents, and they've been able to accomplish that through the years, 'cause a lot of people have worked very hard to accomplish all the plans that we have been able to do in DDA. And the second thing is whatever benefits DDA, the downtown area, Brickell, I mean, it's going to benefit the residents of the City ofMiami. 'Cause my understanding is, and correct me if I'm wrong, downtown and the DDA district pays at least about 35 to 40 percent of the taxes for the City of Miami, ad valorem taxes. So I think that's what -- this support for DDA, I'll always be there. Chair Sarnoff. All right. So let's move on with BH.5. BH.5, we have a motion, we have a second, Madam City (UNINTELLIGIBLE) Madam City Attorney -- Priscilla A. Thompson (City Clerk): Are you -- Chair Sarnoff. -- I'm looking over -- Vice Chair Carollo: And Mr. Chairman, before we vote, I just want to -- for the record, this is City ofMiami Page 125 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 the same millage as last year, correct? Ms. Robertson: Correct. Vice Chair Carollo: There is not a millage increase? Chair Sarnoff No. Ms. Robertson: Correct. Vice Chair Carollo: The same millage. Mrs. Robertson: There's -- the same it's been in the history of the DDA. Vice Chair Carollo: Thank you. Chair Sarnoff Madam City Attorney, it is an ordinance. Ms. Thompson: Excuse me, Chair. Chair Sarnoff Yes, ma'am. Veronica Xiques (Assistant City Attorney): Just to -- Ms. Thompson: I'm sorry. Are you opening up your public hearing? Chair Sarnoff Oh, I apologize. You're right. This is BH.5. The public hearing on BH.5, which is the ad valorem rate for the DDA, is now open. Anyone from the public wishing to be heard? Seeing none, hearing none, the public hearing is now closed, coming back to the City. Madam City Attorney, it is an ordinance. The Ordinance was read by title into the public record by Assistant City Attorney Veronica Xiques. Ms. Thompson: Roll -- 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, 5-0: BH.6 RESOLUTION 10-00937 Downtown A DISCUSSION OF THE MIAMI CITY COMMISSION REGARDING A Development RESOLUTION OF THE MIAMI CITY COMMISSION MAKING Authority 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, 2010 AND ENDING SEPTEMBER 30, 2011; 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, 2010 AND ENDING SEPTEMBER 30, 2011, FOR THE OPERATION OF THE CITY. City of Miami Page 126 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 10-00937 MEMO DDA.pdf 10-00937 DDA PRE LEGISLATION.pdf 10-00937 CERTIFICATION TAXABLE VALUE.pdf 10-00937 MAXIMUM MILLAGE LEVY CALCULATION.pdf 10-00937 LEGISLATION. pdf NO ACTION TAKEN Chair Sarnoff All right, BH.6, we will bring -- Alyce Robertson: Thank you so much. Chair Sarnoff -- we'll bring back BH.6 at the next Commission meeting. Vice Chair Carollo: And Mr. Chairman. Chair Sarnoff Yes, sir. Vice Chair Carollo: One thing that I left out andl guess it was a little important. When I met with the Mayor and the Manager and the CFO (Chief Financial Officer) and so forth on Saturday, I was discussing the different items on the agenda. Andl know the Mayor had mentioned that he would have like to see an additional 5 percent reduction on this budget, even though the millage is the same. I don't know where he went. I don't know if he's here. But I don't know if he still, you know, believes that or so, but that's something that we had discussed. I mean, you know me, I would always like to find areas to cut, but at the same time, I also, you know, respect you being the Chairman, but I just put that for the record. Andl don't know if the Manager could speak to that effect 'cause he was present at the meeting also. Chair Sarnoff Did he hear you? Priscilla A. Thompson (City Clerk): Chair, excuse me. While they're conversing, may I ask a question? On BH.6, you said that that would be carried over to the next Commission meeting or are we saying at the second -- Commissioner Gort: Second -- Ms. Thompson: -- budget hearing? Chair Sarnoff Second budget. Commissioner Gort: -- budget. Ms. Thompson: Second budget hearing. Carlos A. Migoya (City Manager): Basically, what we've been discussing was the ability for these agencies to be at the same target. What we've been trying to do of coming up with last year's budget and reducing it five -- having a 5 percent reduction. I'm not privileged to the DDA budget 'cause I don't have it in front of me, but that was the goal that we've been trying to do is looking at all the different agency budgets that we have and showing a 5 percent reduction, so -- Chair Sarnoff And you're looking for a 5 percent reduction on -- I mean, I would love to reduce my rent; I would love to reduce my liability insurance. I don't think that that -- Mr. Migoya: I mean, that -- we were just saying that that was -- it would be the goal based on the things that we were looking at, so -- Chair Sarnoff Okay. City of Miami Page 127 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Alvin West: Mr. Chair. Chair Sarnoff Yes, sir. Mr. West: I understand the concept, but getting back to the point that we are an independent district, that independent taxing district. Those taxes that come into the DDA cannot be used by the City and it's -- it goes back to an issue of productivity. If the DDA is not productive in putting those dollars on the street, they sit there and they do not benefit the City or the stakeholders of downtown. And I think the thing that we have been trying very desperately to do over the last several years is to become as productive as possible, putting those dollars on the street instead of letting them sit there. And so reducing a budget 5 percent will have no impact on downtown or the City. So I plead with you -- Mr. Migoya: Al, ifI may. I think the idea behind that was the 5 percent reduction on administrative costs, not necessarily on the overall -- I understand that with the DDA, what you wanted to try and do is be able to have some of those funds available to do different programs for downtown. But I think what we've been discussing is not necessarily the overall budgets of any agency, but the administrative costs of actually running any agency. We were not specifically talking about DDA. We were talking about -- in concept, about all the different agencies is what we were discussing. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Yes, sir. You're recognized. Vice Chair Carollo: And yes, I agree with the Manager. And believe me, we're trying to partner up with you and we want to put more money on the streets 'cause that's exactly what the Manager was saying. And that's why, you know, when I spoke a few minutes ago, I was requesting, I was mentioning what I would like to see as far as, you know, what is incurred in professional services, in office and administrative expense. I mean, I see an amount that is quite high. I don't know the breakup of it, so maybe salaries. I mean, salaries, I think, is quite high, in all fairness. So I don't know if any of your employees have taken a 5 percent pay reduction or not. I don't know. I could tell you that all City employees have -- all City employees making 39,000 or above have taken a pay reduction, so that's one way of you know, actually putting more money on the streets. So what we're trying to do is actually put more money on the streets. And again, you know, we could discuss further. Mr. West: I look forward to discussing that further with you, but I can tell you, as we speak today, the salaries and benefits of the staff was cut just last year 15 -- just almost 15 percent. Besides the salaries, health insurance benefits were cut; the amount that the DDA pays for employees' health, all of that was cut. Yes. Chair Sarnoff. Commissioner Suarez. Commissioner Suarez: Was that a self-imposed cut or was that a cut that was mandated upon you? Mr. West: That was a self-imposed cut. Commissioner Gort: Yeah. Mr. West: Mr. Commissioner, when the DDA, the stakeholders, the board hired a new staff and looked at the strategic need of downtown, the objective there was to run as lean and mean as we possibly could in order to get people on the streets, projects done. And there are a lot of needs, City of Miami Page 128 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 as you know, but the only way to do that was to cut our administrative costs and we went about doing that. Commissioner Suarez: Mr. Chairman, one more question. Chair Sarnoff Yes, sir. Commissioner Suarez: Is there anyone here that is in the DDA taxing district that is complaining about the millage or the salaries? Is somebody back there? Was that Richard? Commissioner Gort: Richard pays for it, but he's not here to speak against it. Commissioner Suarez: Oh, okay. But I don't know. I -- Commissioner Gort: But he pays those taxes. Commissioner Suarez: -- 'cause I -- we did see residents here come up and speak on the issue of our millage, and I'm just wondering if maybe anyone that's being taxed, self-imposed tax, you know, 45 year -old self-imposed tax, if anyone's coming up here and saying that they feel that there's -- they're not -- there's not -- what's not being well administered or they're money's not being well administered or -- because it -- as you mention, there is a multiplication issue here -- Mr. West: Right. Commissioner Suarez: -- so -- to the extent that the money's not managed well, it has a deleterious impact to the extent that it's managed well, it has a trickle -down impact into our tax base. So I just want to know if there's anyone here that -- Mr. West: I can tell you, Mr. Commissioner, that the board is made up of stakeholders, business people, property owners within the DDA district. And ifI may call a couple of names, Mr. Tony Alonso, who owns Epoka clothing store on Flagler; Mr. Jose Goyanes, who owns several businesses downtown; all are a member of the budget committee or the finance committee that oversees the spending of dollars in the DDA. And can tell you, to a person they approved the budget, so that -- I think that's a good representation of the stakeholders. And I think all of you know Jose Goyanes, andl think he has a pretty good reputation about if there 's something wrong, he's going to let you know about it. And so they are very favorably disposed to this budget, and they look forward to us putting this budget and putting the money to work in downtown, and it sorely needs it. I mean, I can't say anything else. But I think we're doing a very good job for the citizens ofMiami and, more importantly, we're doing what the stakeholders have charged us to do. Andl implore you, please, let us move on with this budget and get about the job of doing what we were assigned to do. Chair Sarnoff All right. Let's -- we -- have we -- Rolando Montoya: Mr. Chairman, can I make one --? Chair Sarnoff Dr. Montoya, you're certainly recognized. It's not easy. Mr. Montoya: One more comment. The City administrator commented that the goal was to reduce the budget by 5 percent versus the budget from last year. I want you to know that the budget that we are presented to you already has a reduction of 11 percent versus the budget of last year. Therefore, if you would be asking for 5 more points, that would really cause tremendous negative effect on the operations. Therefore, I want you to know that it is already 11 percent reduced versus what we approve last year or you approve last year. City ofMiami Page 129 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 BH.7 10-00938 Chair Sarnoff. I think, candidly, what maybe the Vice Chair and possibly the Mayor are suggesting is that the employees take a 5 percent reduction. Andl think what they're actually saying is that money then get put to the street. Andl think what you need to do is have a conversation with both of them to demonstrate your point of view, their point of view, and come to some resolution. In terms of the other operating expenses, Mr. Vice Chair, I wish -- andl have badgered the Manager -- I really badgered you -- to come up with a way of getting out of the lease. Have I not? Mr. Migoya: Actually, the only thing we did discuss was possibly -- we can't get out of the lease. Chair Sarnoff. Right. Mr. Migoya: So the only way to deal with it is to try to figure out how to share some other agencies or something so that everybody can benefit, if there's any other agencies whose leases are coming up earlier so that we'd be able to at least benefit from that perspective, if at all possible. Chair Sarnoff. I just -- I want this Commission to know that I had three lawyers, not the one that we usually have, look at the lease for any way -- it's not a good lease. I won't tell you by any way, shape, or form that it's a good lease. It's a lease that's too much money. But I had him look at it from a banker's perspective. I had two lawyers look at it, and that is -- that makes up a great deal of the expense and administrative costs. And we know we'd be sued if we walked out. We know that -- we know the folks that run the building. Andl don't want to belabor this any more than I have to, but that area is pretty much a dead end to us unless you guys want to consider moving some other agencies into there to have some shared opportunities and shared expenses, and we've explored that. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Yes, sir. Vice Chair Carollo: And first of all, I -- again, I'll say, you know, I respect you as the Chairman of DDA. You know, our goal is just to put more money out on the street. Yes, if the -- by the way, rent and parking, you know, if it would be itemized, then I could see how much you're paying for rent, how many you're paying for parking. Chair Sarnoff. A lot. Vice Chair Carollo: So that's -- you know, that's my point. And as far as other areas, you know, I don't know. I see a contingency of $250, 000. I don't know what that contingency is for. You know, I'm -- and listen -- look, I respect you as the Chairman. I'm not going to get into details. I'm not going to get into the details of salaries. I actually have it. I would ask that, you know, you send this to all the members of the Commission, all the salaries of everybody that is employed by the DDA and so forth so you could see what they make and so forth. I don't have the breakdown of their benefits, so I don't know, you know, what health insurance they have or not or so forth. But the bottom line is, you know, it's a suggestion, something I spoke with the Mayor, the Manager. And again, we want to work together. What we want to actually do is put more money on the streets. Andl could tell you, about 90 percent of all your employees make more than everybody in my staff. So I'll leave it at that. Chair Sarnoff. All right. So BH.6 we will put to the next budget hearing. RESOLUTION City of Miami Page 130 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Bayfront Park A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Management Trust ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE BAYFRONT PARK MANAGEMENT TRUST, IN THE AMOUNT OF $3,650,000, TO PROVIDE FOR THE OPERATIONS, MAINTENANCE AND CAPITAL IMPROVEMENTS OF MILDRED AND CLAUDE PEPPER BAYFRONT PARK, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011. 10-00938 MEMO. pdf 10-00938 LEGISLATION. pdf 10-00938-Exhi bit -SUB. pdf Motion by Commissioner Suarez, seconded by Commissioner Dunn II, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-10-0352 Chair Sarnoff. BH.7 is the Bayfront Trust. Tim Schmand: Good evening, Commissioners. Tim Schmand, Bayfront Park Management Trust, 301 North Biscayne Boulevard, Miami, Florida. I'm here today to ask you to approve the Bayfront Park Management Trust operating and capital improvement budget for the next fiscal year, in the amount of $3,650,000. And if you have any questions for me, I'd be interested to hear them. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. You're recognized for the record, the Vice Chair. Vice Chair Carollo: Thank you. I don't know if you want to entertain a motion or if you want to open up to a public -- it's a public hearing. Chair Sarnoff. I'm sorry. You're right. Commissioner Suarez: So move. Commissioner Dunn: Second. Chair Sarnoff. We have a motion by the -- by Commissioner Suarez, second by Commissioner Dunn. Let me open up a public hearing. Anyone from the public wishing to be heard on the Bayfront Trust annual budget, please step up. You're recognized for the record, Mr. Kurland. Nathan Kurland: Nathan Kurland, 3132 Day Avenue, Coconut Grove. Ladies and gentlemen, those of you who are still here -- and I hope I don't embarrass Rudy and Tim too much, nor our chairman -- what you have here at the other podium is a city treasure. What I mean by that is that one of the great institutions for the -- of the City of Miami is Bayfront Park. This is a park that will have an anniversary of sorts this week when the 50,000th person doing yoga for free will come to Bayfront Park and enjoy that free service. Bayfront Park, as many of you know, receives absolutely no money from the City ofMiami. Bayfront Park supports itself. As Commissioner Carollo and the Chairman of Bayfront Park pointed out, there's almost no questions regarding the budget put together so ably by Rudy and Tim because they answer all questions before you even have a chance to ask them. In conclusion, and very proudly as a member of the Bayfront Park Management Trust, I say to you that this is an organization that deserves your support. This is an organization that deserves an absolute approval of their budget request. Thank you. City ofMiami Page 131 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoft All right. Vice Chair Carollo: Mr. Chairman. Chair Sarnoft You're recognized for the record, Vice Chair. Vice Chair Carollo: I don't know ifI should -- if Tim -- the executive director, Tim Schmand, speak first, but there's only one issue with this budget that you know I'm going to point out, which I already have. Mr. Schmand: Andl encourage you to. Vice Chair Carollo: As far as the maintenance expense, I want to verin, the number and -- Mr. Schmand: Yes. There's a scrivener's error in the budget that our chair identified for us and for that, we thank you. I believe it's on page 20. Vice Chair Carollo: I just want to make sure that, you know, the amount is correct. Mr. Schmand: And the amount in the budgets that were distributed to the Commission showed $1, 026, 770, and the correct amount is $1, 023, 776. So it's a $3, 000 error. Commissioner Gort: That's what I got. Chair Sarnoff We may need to bring that back then. Mr. Schmand: I encourage you to. Commissioner Gort: That's what I have. Commissioner Suarez: I need the detail on that. Vice Chair Carollo: You have the detail on it. That's the problem. That's how I caught it. You have the detail. Commissioner Suarez: Just giving you a hard time. Chair Sarnoff All right. Well, we -- it's a motion. Priscilla A. Thompson (City Clerk): Excuse me, Chair. Chair Sarnoff Yes. Ms. Thompson: Are you going to close your public hearing? Chair Sarnoff I'm sorry. Anyone else -- public hearing on the Bayfront operating trust budget. Anyone wishing to -- I've already asked that. Anyone else wishing to be heard on that? No. I'm closing the public hearing. I just want to make a comment. Nathan, you understated Tim's ability. You've understated the Bayfront Trust's ability. It was absolutely my favorite board to be a part of. I'm actually jealous of the Vice Chair because Tim Schmand makes everyone look good every day. And Tim and your team, my hat's off to you because I don't even have the nerve to ask a question about your budget. Commissioner Gort: You don't have to. I'm sure -- City of Miami Page 132 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Schmand: Thank you, Commissioner. Commissioner Gort: -- they've been asked already a thousand times. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Yes, sir. You're recognized. Vice Chair Carollo: I have to echo that. I have to say, in all fairness, Tim, you make my work a lot easier. You really do. Between you and Rudy, it's really a pleasure working with you all. I think you know it. And you know, all I could say is thank you. You know, I'm really proud to be able to say, you know what? You want to see what I'm looking for? Look at Bayfront Park Management Trust's budget. That's what I'm looking for. So thank you for that, and I really look forward to continuing to work with you and Rudy. Thank you. Mr. Schmand: Thank you. Chair Sarnoff All right. So it is a resolution. Any further discussion, gentlemen? Hearing none, all in favor, please -- Ms. Thompson: Excuse me, Chair. Chair Sarnoff Yes, ma'am. Ms. Thompson: Wanting to make sure. You made a modification on the record for the amount. Is that correct? Vice Chair Carollo: Mr. Chairman, the amount is correct on the actual budget. Commissioner Gort: Right. Vice Chair Carollo: Just on the details, on -- yeah. There's a scrivener's error. Mr. Schmand: Scrivener's error, correct. Vice Chair Carollo: Exactly. But the amount on the budget is actually correct. Chair Sarnoff It is not as amended. Mr. Schmand: It is. Chair Sarnoff It is not as amended. There is no modification. Ms. Thompson: May I ask one question, please, because the resolution says with attachments. So Ijust want to make sure that the details are not a part of the attachment. Mr. Schmand: They are. Vice Chair Carollo: I think they are. Mr. Schmand: I think the details are a part of the attachment -- Ms. Thompson: Thank you. City of Miami Page 133 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 BH.8 10-00939 Miami Sports & Exhibition Authority Mr. Schmand: -- so that will have -- Vice Chair Carollo: Exactly. Mr. Schmand: -- to be amended. And Rodolfo will deliver an amended copy to you as soon as this conversation ends. Ms. Thompson: Thank you. Mr. Schmand: Thank you. Chair Sarnoff All right. So we have a motion, as amended; a seconder, as amended. Commissioner Suarez: I accept. Chair Sarnoff All in favor, please say aye." The Commission (Collectively): Aye. Mr. Schmand: Thank you all. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE MIAMI SPORTS & EXHIBITION AUTHORITY, IN THE AMOUNT OF $107,000, TO PROVIDE FOR THE OPERATIONS AND MAINTENANCE OF THE AUTHORITY, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010, AND ENDING SEPTEMBER 30, 2011. 10-00939 MEMO.pdf 10-00939 LEGISLATION. pdf 10-00939 EXHIBIT. pdf Motion by Commissioner Suarez, seconded by Commissioner Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-10-0353 Tim Schmand: Tim Schmand, Miami Sports and Exhibition Authority, 301 North Biscayne Boulevard, Miami, Florida. Chair Sarnoff You got problems with this one, buddy. Commissioner Gort: Yeah. Commissioner Suarez: I got some problems with the salary on this one. Big problems, big problems. Mr. Schmand: I'm asking you to approve the Miami Sports and Exhibition Authority operating budget for '10/'11 in the amount of $107, 000, and if you have any questions. Commissioner Suarez: So moved. City of Miami Page 134 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Gort: Second. Vice Chair Carollo: Second. Chair Sarnoff We have a motion. We have a second. Let me open up to a public hearing. Anybody wishing to be heard on the MSEA (Miami Sports & Exhibition Authority) annual operating budget -- you sit down, Nathan. We couldn't say anything more about Tim. I feel like I got to go blow my nose now. Commissioner Suarez: I think to just say that it's late -- Chair Sarnoff Right. Commissioner Suarez: -- but his -- just for those who are watching, his salary for MSEA is zero. Just in case anybody didn't get the joke. Chair Sarnoff Yeah. We give him an extra board to handle. All right, any discussion, gentlemen, on the MSEA budget? Hearing no dis -- public hearing. Public hearing is opened. Public hearing is now closed. Any discussion? Seeing [sic] no discussion -- we do have the Vice Chair. Vice Chair Carollo: I do, I do, I do. Chair Sarnoff Hey, you're recognized. Vice Chair Carollo: Just 'cause I like Tim doesn't mean that I'm not going to look at every -- Chair Sarnoff Did you find a typo? No. I'm just -- Vice Chair Carollo: No, no, no. I wanted to just put it for the record. I see City contribution of 107, 000. Where is those revenues coming from? Mr. Schmand: It's -- the revenues come from money that MSEA has in the bank, and it doesn't mean City contribution. Vice Chair Carollo: It's actually the reserves? Mr. Schmand: It's actually the reserves, correct. Vice Chair Carollo: Okay. So realistically, MSEA's not making any revenues, whatsoever? Mr. Schmand: No. There is no current revenue stream coming into MSEA. Vice Chair Carollo: Okay. And that's something that I have mentioned in the past that I'm concerned. You know, we have an agency that is not incurring any revenues and has expenses. So, you know, for the future, we need to see how we come up with some revenue streams for MSEA. So again, you know, I'm just bringing it up, you know, as a discussion. Once again, my concern that there is no revenue streams. Mr. Chairman, can I continue? Chair Sarnoff Oh, absolutely, please. Vice Chair Carollo: Now the Mayor and I know that back in the days, MSEA used to host some good lunches. Now, with that said, I see business meeting expenses of 1,500. I know it's somewhat petty, but for an agency that's not receiving any revenues, I'm -- City of Miami Page 135 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Schmand: The MSEA budget that's being presented to you right now was approved by the MSEA board of directors, some of whom -- some of you who sit on that board, so if, in the future, you would like to direct staff to retreat on the lunches provided for those meetings, staff would follow that direction, I can assure you. Vice Chair Carollo: Touche, tuche. Commissioner Gort: Brown -bag meetings. Chair Sarnofff. It didn't work well by the way. I think my first motion at the Bayfront Trust was to do away with lunches. Nathan, I think you were there. I don't think it got a second andl don't think -- Nathan Kurland: You didn't get a second. Chair Sarnofff. Right. Vice Chair Carollo: This is MSEA; there's no revenue streams. Mr. Schmand: And the chair of MSEA just pointed out to me that there is a potential for revenue streams in the future, so all is not lost. Chair Sarnofff. All right. You ready? Commissioner Gort: Recreating revenues. Chair Sarnofff. All right, so we have a motion. We have a second. Public hearing's been opened. Public hearing's been closed. Ready, gentlemen? Any further discussion? Seeing none, all in favor, let's say aye." The Commission (Collectively): Aye. Chair Sarnofff. Okay. Mr. Schmand: Thank you very much. Chair Sarnofff. Wait, Tim. We want you to keep presenting. Just kidding. BH.9 RESOLUTION 10-00940 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, 2010; APPROVING THE RATE OF ASSESSMENT; APPROVING THE ASSESSMENT ROLL; AND PROVIDING FOR AN EFFECTIVE DATE. City of Miami Page 136 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 10-00940 SUMMARY FORM.pdf 10-00940 PRE LEGISLATION.pdf 10-00940 LEGISLATION. pdf 10-00940 EXHIBIT .pdf 10-00940 EXHIBIT 1.pdf Motion by Commissioner Dunn II, seconded by Vice Chairman Carollo, that this matter be ADOPTED FAILED by the following vote. Votes: Ayes: 2 - Commissioner(s) Sarnoff and Dunn II Noes: 3 - Commissioner(s) Gort, Carollo and Suarez R-10-0354 (BH.9) RESOLUTION 10-00940 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, 2010; APPROVING THE RATE OF ASSESSMENT; APPROVING THE ASSESSMENT ROLL; AND PROVIDING FOR AN EFFECTIVE DATE. 10-00940 SUMMARY FORM.pdf 10-00940 PRE LEGISLATION.pdf 10-00940 LEGISLATION. pdf 10-00940 EXHIBIT .pdf 10-00940 EXHIBIT 1.pdf Motion by Commissioner Gort, seconded by Vice Chairman Carollo, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Dunn II Noes: 2 - Commissioner(s) Carollo and Suarez R-10-0354 Chair Sarnoff All right, BH.9. Keith Carswell (Assistant Director, Solid Waste): Good evening, Mr. Chair, Commissioners. The proposed resolution is establishing the solid waste assessment for the fiscal year beginning October 1, 2010. What is being proposed is a $30 increase of $395 per single-family household, which would generate for fiscal year 2000 -- beginning 2010/'11, 27, 306, 745 in terms of gross receipts. Chair Sarnoff All right. Let's open up a public hearing on BH.9. It is the imposition of a solid waste fee. Anyone from the public wishing to be heard, please step up. Mr. Cruz, you are recognized for the record. Mariano Cruz: Yeah. Mariano Cruz, 1227 Northwest 26 Street. Last year you could have gained a $50 increase of anything -- you put a cap up to $50 more, right? Remember that? Oh, I was here. I was here. See, I don't mind paying -- City of Miami Page 137 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnofff. No, no, not last year. No, no, no. This year we did a -- I think we allowed it. Mr. Cruz: Yeah. The Mayor say $30, right. Up to 30. You go anything over $400, he would veto that. Okay. But remember, I don't mind paying the fee. I still -- it's less money that my children pay in Kendall, North Miami, Miami Lakes for that, and we got the better service of trash pickup. And the only thing bad is when the garbage used to be included in the ad valorem tax; was the tax you could deduct it and you would itemize it. But since I don't itemize anymore, I don't have to worry about that thing. I don't mind paying that fee, so I am a fee payer. You know, I don't mind. That's good. Thirty dollars, that comes to about two fifty a month. No. I can afford that, right? Right, Mayor? Thank you. Chair Sarnofff. All right. You want to respond to Mr. Cruz? Mr. Carswell: And Mr. Chair, just for a point of clarification, for the last two fiscal years, the fee has been 365. Chair Sarnofff. Andl believe -- right. And you're proposing a fee of what? Mr. Carswell: Three ninety five -- Chair Sarnofff. Three ninety five. Mr. Carswell: -- which would represent a $30 increase -- Chair Sarnofff. That's what I thought. Mr. Carswell: -- for the upcoming fiscal year. Chair Sarnofff. All right. Any -- oh, I'm sorry. There you are, Joe. Go ahead. Joe Simmons: Joe Simmons, Jr., president of the Sanitation workers union. We ask for your support on this item. We have a very aging fleet. We have equipment as far back as -- as far as -- as old as 1993 and some of that equipment can't go over 30 miles an hour. So we ask for your support in order to continue our fleet replacement plan. Thank you. Chair Sarnofff. Thank you. Anyone else from the general public wishing to be heard, please step up. Hearing none, seeing none, the public hearing is now closed. Do I have a motion? Commissioner Dunn: Mr. Chair, I make a motion. Chair Sarnofff. Motion by Commissioner Dunn. Is there a second? Vice Chair Carollo: I will second for discussion. Chair Sarnofff. All right, we have a second by the Vice Chair. Who wishes to be recognized first? Mr. Vice Chair. Vice Chair Carollo: I'll go first. Thank you, Mr. Chairman. As I said when we first placed the cap on this fee increase, that I was not ready to vote for a garbage fee increase. I continue to maintain that. No, I am not going to vote for a garbage fee increase. I think right now the residents that it's going to affect are the ones that need tax relief the most, andl do not want to put this burden on them. Thank you. ChairSarnofff Thank you. Anyone else? City of Miami Page 138 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Dunn: Mr. Chair. Chair Sarnoff. You're recognized, Commissioner Dunn. Commissioner Dunn: Now, I'm -- you know, I understand probably the votes are not here for the increase in fees, but let me ask a -- without increasing the fees, the general fund will be subsidizing our solid waste collection. Is that correct? Mr. Carswell: The -- based on information that was prepared by the Budget Department, the break even for the Solid Waste Department is $458 per household; so based on that, it would be a subsidy based on those numbers. Commissioner Dunn: So we're about -- if we were to pass the 395 -- Mr. Carswell: It would still not average -- Commissioner Dunn: Still not. Mr. Carswell: -- out to $458 -- Commissioner Dunn: You're about -- Mr. Carswell: -- per household. Commissioner Dunn: -- 60-something dollars short, right, 60 -- 63 -- Mr. Carswell: The difference -- Commissioner Dunn: -- 65, something like that. Chair Sarnoff Sixty-three. Mr. Carswell: Yes. Commissioner Dunn: Sixty-three, yeah. Carlos A. Migoya (City Manager): Mr. Chair. Chair Sarnoff Yes, sir. Mr. Migoya: Also, if we were not to pass this, what our proposal would be is that we would get -- take the capital expenditures that would be scheduled to be done for this year and take the million seven fifty that was meant to be for the general fund from the capital expenditures so we would have to reduce capital expenditures and solid waste by that amount. Mr. Carswell: Right. You were looking at generally 2.1 million would go towards capital expenditures for the upcoming fiscal year. I think, as Mr. Simmons mentioned, we have an aging fleet. The average -- well, we would ideally like to replace 41 pieces of equipment. The average life beyond the standard service for each equipment is about 4.2 years beyond the recommended service. So in essence, if a piece of equipment has a five-year life span, we have it in service for nine years, so that would impact us from that capital standpoint. Mr. Migoya: In addition, we have to make some additional purchases this year -- Vice Chair Carollo: Exactly. City of Miami Page 139 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Carswell: Correct. Mr. Migoya: -- as it relates to -- not just -- you know, not just trucks, but talk, Keith, if you don't mind, about the Virginia Key (UNINTELLIGIBLE). Mr. Carswell: Well, one of the things we -- I look at it as -- in terms of a good problem. We've been able to negotiate some agreements with City of Coral Gables, North Miami, which is expected to generate in excess of $500,000 per year. The good problem is that we have a grinder out there, and in terms of providing customer service, we're in need of a -- purchasing an additional grinder. I'd also like to mention that we are in conversations with the Village of Biscayne Park as well as North Miami Beach to provide also their clean yard service. A grinder, you think of it as a small piece of equipment. But a commercial grinder cost in excess of $250,000. So one of the challenges we have when we're processing upwards of about 80,000 tons of -- 80 tons of clean yard trash per day is that we want to have back-up equipment in place in case something happens to our existing equipment, so therefore, we are in need of purchasing an additional grinder for next fiscal year. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff You're recognized. Vice Chair Carollo: Question. Do you know when was the last time that the Solid Waste -- or the City purchased a grinder for Solid Waste Department? Mr. Carswell: The grinder that we currently have in service is about three years old. Vice Chair Carollo: And what's the life of the grinder? Mr. Carswell: It's not so much the question of having -- the grinder is in fairly good shape . The question becomes since we're bringing on additional clients or customers, if you will, plus we're going to divert more of our clean yard trash to the facility which will provide a savings of about a half a million dollars to the City in tipping fees that we would otherwise pay the County, we want to at least have back-up equipment in case that through normal wear and tear and through normal usage -- and we have great people that are operating and servicing the equipment, but just in case that piece of equipment breaks down, we're still going to be getting those truckloads on a daily basis and we want to be able to process that clean yard trash. So it would be ideal if we were able to purchase an additional grinder to just have it as backup for the operations. Mr. Migoya: The point is that we currently have in the capital expenditures, after allocated items, $300,000. Mr. Carswell: Correct. Mr. Migoya: Of the 2.1 that we'll receive next year, if we take out a million seven, we'll have 400, so it leaves a total of 700, 000. After we take out the projects that we have for Virginia Key, which is probably going to be between 3 and $400,000, including the grinder, we will basically have no money left to buy any trucks or anything else for Solid Waste, which, in everyone's opinion -- you know, we've been spending over the last four years an average of $2 million a year, and that hasn't been enough as it is. That's part of the reason why we're asking that extra five -- of the $30, five of it was going to go towards additional capital, so -- and then to bring it up to $2.4 million so that we at least would be able to help that. So that's -- I'm just letting you know what we would have to do from a standpoint of our trucks and other equipment that we will have to wait another year before we can buy anything else. City of Miami Page 140 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. You're recognized. Vice Chair Carollo: Do you think, through cuts of -- I don't know ifI want to open this Pandora's box yet. But when we start going department by department, do you think we'll find $2 million of excess money going to departments where we could possibly not raise this fee and find the money to buy the equipment that's needed? Mr. Migoya: Well, then, we also have to find about another $4 million because we don't have enough in there for police cars, we don't have enough there for fire vehicles, we don't have enough in there for maintenance for properties of the City, so we have a shortage in those areas as well. Vice Chair Carollo: Well, it's my understanding that in the police vehicles, you allocate -- I forgot what was the amount, but it seems like it was a hefty amount. Andl know when we spoke about it on Saturday, I mentioned -- and actually, the CFO (Chief Financial Officer) was going to get back to me and he hasn't -- whether we could actually lease the vehicles where it'll be actually cheaper, at least the cash upfront will be a lot less, and he never got back to me 'cause apparently -- I was told -- I asked and I was told that, you know, there's other counties that have been able to lease their police cars and so forth, so that might be one way of you know, putting less money upfront. I mean, we will have to do the math and so forth, but you know -- Mr. Migoya: Yeah. We -- first of all, I don't know if there's feasibility, but even if there is -- Vice Chair Carollo: Right. Mr. Migoya: -- you're basically mortgaging on the future, but you'll be able to do that, but it would be a more expensive way of doing it. Chair Sarnoff. Commissioner Gort. Commissioner Gort: If you all recall, one of the reasons we change the fiscal year of the CDBG (Community Development Block Grant) funds, it was to be able to maximize on the use and the allocation was made -- it was made for nine month, and the new year of CDBG funds will be coming up in April of 2011. We were able to find funds to buy some of the equipment needed by the Fire Department from CDBG funds. So I think we should -- we could be looking in that. Right now we made a commitment that we're going to raise taxes. We're not going to raise taxes to the residents. People, let me tell you, I had a presentation the other day. Only in my district alone, we had over 200 foreclosure. We -- every day we getting calls from people that have abandoned their homes. They're opened, abandoned homes; that we got to get GSA (General Services Administration) to go there and close them because people are moving in there and delinquents are moving in there. We having major problems in our neighborhoods. Chair Sarnoff. You're recognized, Commissioner Dunn. Commissioner Dunn: Again, what is the average -- mean average for the truck -- the fleet of trucks that we have? What -- (UNINTELLIGIBLE) year. Mr. Carswell: The average vehicle that we have in service is at least 4.2 years beyond the recommended service. So generally, pieces of -- the trucks are a five-year service span. Well, we're in nine year -- we're in the ninth year for operating that particular vehicle. Commissioner Dunn: So -- City of Miami Page 141 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Carswell: So if it's in service -- if it's -- Commissioner Dunn: -- it's already four years beyond the recommended -- Mr. Carswell: It's four years beyond the recommended service, which in this case would be nine years if it's -- Commissioner Dunn: Let -- have we ever been this far behind in terms of purchasing equipment for Solid Waste? Mr. Carswell: We have historically. Historically -- and again, I haven't been around for the history, but in talking with people that have been with the Department, the Department has not received necessarily its fair share historically. I think over the last four years, there's been about eight million in capital expenditures, but that has not been enough to catch up for what has transpired in the past. Also, to address Commissioner Gort's question, one of the biodiesels that we just purchased recently, we received a grant from the federal government to pay for 25 percent of that, which was a match. So we are identfing, under the vision of the Mayor, other sources of revenue that don't entail increasing the fees but identfing other revenue opportunities. And we're also looking at grant opportunities for our equipment needs, and we're trying to be a little more frugal as we move forward. So we're looking at all aspects of trying to, I think, effectively manage the operations of the Department. Chair Sarnoff Commissioner Suarez. Commissioner Suarez: Thank you, Mr. Chairman. Keith, I will one day vote jfes'bn one of your items. I promise. It's nothing personal. I think you're a great guy and I think you're doing a great job running the Department or helping run the Department. I think -- and we all know how I feel about this issue, and I'm not going to pour anymore salt on the wounds, so --I mean, everyone knows where I stand. Vice Chair Carollo: Thank you, Mr. Chairman. The only other thing I want to say is -- actually, I want to thank you, Keith. I mean, you came up. You were prepared. You answered the questions. I actually had some of the answers of some of the questions the Commissioners had andl was ready for you not to answer them correctly. Andl said, hey, he's on the ball. He -- you know, he's telling us, you know -- and that's actually what -- that's all we askfor. You know, just give us accurate information so we can make an educated, you know, decision. So I actually appreciate that. Mr. Carswell: Thank you. Vice Chair Carollo: So thank you. Commissioner Dunn: Mr. Chair. Chair Sarnoff Go ahead, Commissioner Dunn. Commissioner Dunn: On a note of humor, he's a Silver Knight honoree so that has something to do with it. Mr. Carswell: That's a inside joke. Commissioner Dunn: That's true. He is. Chair Sarnoff You know, if -- City of Miami Page 142 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Carswell: So -- Chair Sarnoff. -- I could make a comment on this, and I'm going to ask the Commissioners for one moment that have a closed mind on this issue, just for one moment to open up their minds. For $2.50 more to the taxpayer, no two ways about it, you can maintain what we all have to acknowledge is probably the best garbage service probably in all ofMiami-Dade County. I know some of you think we can still make that happen. We can squeeze some more money from the orange and, you know, somehow we're going to find some more juice. The one thing I've been pretty confident of is that this Manager is looking everywhere for every line item he can. I suspect, if we were talking about police cars, we would not really pause in our deliberations very long for that extra $2.50. For those of you that don't know, we purchased Lodal trucks. I think it goes back seven to ten years ago. Each and every one of the Lodal trucks that we purchased is no longer in service and is no longer serviceable. We have a lawsuit against them. We're not doing very well in the lawsuit. We're not going to achieve the kind of results we hope we were going to get. I don't think it was through anyone's fault that we got Lodal trucks that simply are not good use trucks. I could think of no item -- and I'm from New York City. I remember the eight -story garbages that then Mayor Regalado [sic] got to report on. There's no item that touches and affects a citizen's life more than having a clean city and having their garbage picked up. I remember when I was just a citizen, andl thought the only thing the City ofMiami gave me in all the times and years I paid taxes was what they call those little green soldiers. And you know those little green soldiers, those one-armed bandits that pick up those things, I -- and forgive me, Commissioner Suarez. I know you had to give away your green soldier because a next -door neighbor needed a garbage can and we didn't have any garbage cans. And for $2.50 for any house that's being foreclosed upon, think of the garbage that that emits that you're going to have to go pick up, the burden that puts on CDBG, the burden that puts on the Sanitation Department simply to go out and clean up what the people -- when you get your house foreclosed upon, what you do is you walk away and you leave it in a condition that probably you're not proud of but then you've been foreclosed upon by a bank. This is really not a hard issue. This is an issue that your principals should bend ever so slightly to. This is a really important issue to the City ofMiami. This is something that everyone here today, in one shape or another, has voted for an increase of fee of some kind. There's no two ways about it. Nobody up here wants to increase a fee. Nobody up here wants to be called a tax -and -spend guy. Those days are over. But you're being asked to simply put in a $2.50 per month increase. We all trust this City Manager. We all trust that this man has looked everywhere. And what's going to happen is we're going to create temporal pressure on our budget so that he's going to make a choice between a police car and a garbage truck, and it's going to come down to that. And it's not right for us to sit here and stand on some moral or ethical or political reason to say I had no part in increasing anything. We've been called everything in the book today by unions, by others. We've been called good. We've been called bad. People often are unreasonable, illogical, and self-centered and in the words of a great poet, they said forgive them anyway. I'm asking each and every one of you to find it in your heart and find it in your soul to make this compromise and allow this $30 to go to a department that each one of us knows it's a -- it is a tough department. It is the lowest paid employees of the City ofMiami. I think I could tell you, Human Resource officers will tell you, you can increase somebody's wages and that's forgotten in ten minutes. If you give them better equipment, it's remembered for years. And give these guys the ability to go to work with better equipment. IffI thought this City Manager could scour his books and find the money, I'd vote against this. And the last issue I want to talk to you about, andl want to get political with some of you, is there are about 70,000 people who don't even use our Sanitation Department, period, and they live in high-rise buildings, and yet, they're being asked to pay for sanitation, a service they don't even use. It's called taxation without representation 'cause essentially, they're being taxed but they don't even get the service. I know you could say, well, you know what? How many people in my district might go to Little Haiti and Little Haiti Park? But you know what? It's there for them; they can. They can go if they choose to. This is a service that cannot be used by them; yet, you will tax them for it. Andl know the Mayor said it's only going to be $30, andl -- my hat's off to him, butl ask each one of you just for one moment City ofMiami Page 143 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 to pause in your deliberations and just consider whether $2.50 and allowing us to have new, what they call, green soldiers and at least six more garbage trucks is really not a well -reasoned, well -thought out position as a Commissioner that you want to take. You want to respond? Commissioner Suarez: Yes, I do. I wasn't -- Chair Sarnoff Wasn't directed to you. Commissioner Suarez: -- going to put -- pour salt on the wounds, but I feel compelled to express what my philosophical reservations are once again with this fee to begin with. First of all, it's regressive in nature, which means that the fee, in its existence, is paid the very same by the poorest people of our community as it is by the very richest people of our community. So that's the first philosophical problem I have with it. Secondly, and increasing it is also regressive in nature so that the increase is going to affect the poorest people of our community the same as it's going to affect the richest people of our community. Secondly [sic], I have a very big problem with the concept that we're subsidizing our Solid Waste Department with a solid waste fee. We pay taxes to pay for our Solid Waste Department. Some people pay a lot of taxes to pay for our Solid Waste Department. Maybe people who aren't getting the benefit of that department shouldn't have to pay that portion of it and maybe they should receive a discount for services that they don't receive that they pay for. I think the Mayor once made the argument that he pays for the School Board. I pay for the School Board as well. I don't receive any services from the School Board and it's unfortunate that I have to do it as someone who doesn't have children yet that can benefit, but the entire community benefits from my School Board payments, so I do it gladly. You know, those were my sentiments then. I expressed them very vociferously at that point. I wasn't going to express them very vociferously today, but -- 'cause I didn't want to pour salt on the wounds, but you know, I feel compelled to make my arguments known again because they're very near and dear to my heart and it's part of the philosophy that I live by. Commissioner Dunn: Mr. Chair. Chair Sarnoff Yes, sir. Commissioner Dunn: I want -- on a very serious note, again, when you start talking about raising any fees, it's a real sensitive issue with the City, with its Commission. However, when you look at the basic services, the breakdown, it is possible -- besides those 70,000 residents -- but it is possible that a resident in the course of a year may never have to call the City ofMiami police. It is possible. That is very much possible. It is also possible that one of those residents may never have to call fire -rescue in the course of a year. It's very possible. And not just in the course of a year, but possibly a course of a lifetime. But every Monday and Thursday, God forbid if our trash is not picked up. Now that is something that we really have to look at. And one of the things that I'm looking at in District 5 and it's basic. It sounds simple. It sounds -- but having a clean community -- there's an old adage Cleanliness is next to godliness. "And you can count on the solid waste every Monday and Thursday. And I'll say this, come hell or high water, even on holidays, they're there and they're there picking up that trash. And there have been times when I missed putting out that green one -arm truck or the can, and you know, I can't wait until the next go round because your trash starts to stack up. So it is something that I want to commend -- it is challenging, and we are working together as a unit andl respect everyone's position. But I will go on record with the Chairman for us to really look at it because I believe we'll either pay now or pay later. Chair Sarnoff All right. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff You're recognized for the record, the Vice Chair. City ofMiami Page 144 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Vice Chair Carollo: Thank you. Andl really don't know when was the appropriate time to start speaking, you know, department by department and so forth. However, you said that this is either going to be a garbage truck or a police car. I don't think that's necessarily so. Andl could start naming things in, you know, the budget that I think could be reduced or at least we need answers to. You know, one of the things is that we're going to -- well, it's going to be requested of us to make a 3.3 million capital expenditure to IT (Information Technology) for EPR [sic] or -- I don't know the acronym. But the bottom line is if we're making such an expenditure, why is their repair and maintenance going up by such a large amount? Their repair and maintenance this year is 1.7 million; yet, proposed for 2011 is 2.3. I didn't do the percentage to see what a percentage increase that is, but if we're buying new equipment, why are we spending so much more on repair and maintenance in IT. Andl think there we could obtain some funds. I got a couple of others that I just wrote down. You know, Fire -Rescue. Fire -Rescue, they're -- due to the imposed cuts, their salaries have gone down; yet, the FICA (Federal Insurance Contribution Act) taxes don't reflect that. The FICA taxes are way up. And actually, I think they've increased when they actually should have decreased, so it's not in line with what the actual is, andl think there you could get probably a few hundred thousand dollars. There's one more that are high amounts. I mean, there's a whole bunch of these, but you know, I'm touching upon some of the higher ones. Public Works -- give me a second. Mr. Migoya: Would you like an on the FICA now or would you like to wait till later? Vice Chair Carollo: Sure. I could hear it now. Mr. Migoya: That's because -- as you might remember on Saturday, we discussed about talking about the allocation of reduction of expenses. Vice Chair Carollo: Right. Mr. Migoya: That was done at a departmental level but not individually. There is a certain reduction of FICA that will part of that overall, so the FICA number will be lower when you actually input the reduction on a per person basis into FICA. Vice Chair Carollo: So you're not -- okay. But how come you did it correctly for the Police? Mr. Migoya: We didn't do it correctly for the -- they're all allocated on a departmental basis, sir. Vice Chair Carollo: I don't know. My numbers show that it's correct for Police, not the Fire. I mean, and we can reconcile. I mean, we're here to work together and that's what -- Mr. Migoya: Absolutely. Vice Chair Carollo: -- I'm trying to do. Mr. Migoya: And that's what we will. But I mean, if you want to go into the details of all the individual departments now, we can. I mean -- or we can do it when we're doing with the individual departments. Vice Chair Carollo: Well, the only thing that I'm saying is that, you know, one of my colleagues mentioned that this might pin a police car against a solid waste truck. And what I'm saying is that I'm seeing stuff in the budget that I would really, you know, either want an answer to or see if we could obtain the money from there, andl think we can. Mr. Migoya: I think the issue is not just a police car or a garbage truck. I think at this point it's neither a police car nor a garbage truck because what we need is going to be substantially more City of Miami Page 145 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 than the $2 million, but we will discuss that further, I guess. Vice Chair Carollo: Okay. Mr. Migoya: Let's see, right now I can identf, it's four plus the two is six, and there's possibly another five, so it could be up to $11 million that we would need to be able to satisfy all the capital expenditures that we need for the City. Vice Chair Carollo: And that's reflected in our budget? Mr. Migoya: Not at this point, but we will discuss it when we get to individual areas. Vice Chair Carollo: Well, again, you're saying not at this point. Well, what have we been given then all these days? What have we been studying? I mean, if it's changed overnight, then, you know, we need to know about it because -- Mr. Migoya: No. The $4 million, sir, we did -- I discussed with each one of you, including you, on Saturday for, I believe, about seven hours in which we talked about the $4 million deficit on the capital expenditure. The other two million, it happens right now with the garbage fee. And there's a potential difference of $5 million in those reimbursements from CRA (Community Redevelopment Agency), which we may not be able to do, so that's how the $11 million happened. So the only thing you are not privy to at this point, which we will discuss, is potentially -- and we'll know tomorrow -- about whether or not we can get reimbursed on the full amount of the CRA fees or only about half of them. Vice Chair Carollo: Well, again, I'm trying to work with the Administration. This isn't trying to be an adversary position. I'm just trying to work with the Administration. However, you know -- Mr. Migoya: It's -- Vice Chair Carollo: -- I'm working with what I've been given. Mr. Migoya: Right. Vice Chair Carollo: You know, now, you know, I'm not going to get into he said, she said, this and that. Yeah, we spent seven hours on Saturday, seven maybe plus hours, you know. So be it. But you know what? That's our job andl think that's what -- Mr. Migoya: I agree. Vice Chair Carollo: -- we should do. And again, I'm not doing this as an adversary position. I'm doing this, you know, to work with you so -- and I'm working with what I've been given. As a matter of fact, the reason why I have two computers is because this is what I've been working with; this what I received at 10 p.m. last night, so -- instead of merging both of them, I figure I spend more time actually looking at the budget, and that's why I brought both, so I could compare what was the differences and so forth. Mr. Migoya: And Commissioner, we welcome working with you because the details that you're providing us has helped us put a better budget process together. Chair Sarnoff. I'm tempted to table this so that in the event there are not savings -- I think there's a need. I think we all know there's a need, but what if we don't satisfy that need through either CDBG or we don't satisfy that need through cutting departments by going line items through budgets. I'm tempted to table this so that at the end of the day, we don't cut -- I mean, I'd hate to see these guys continue without the ability to pick up the garbage. I mean, I've seen City of Miami Page 146 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 these trucks go 30 miles per hour. They can barely operate, some of them. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Yes, sir. Vice Chair Carollo: In all fairness, table it till when? Chair Sarnoff. Well, until -- you wanted to talk about, I think it was BH.4? Commissioner Gort: Mr. Chairman. Chair Sarnoff 3? Vice Chair Carollo: 3. Chair Sarnoff Yes, sir. Commissioner Gort: My understanding, this is first reading. Anything can be changed in the second reading. I'm willing to vote for it at this time in the first reading. Ms. Thompson: It's a resolution. Ms. Bru: This has to be adopted tonight -- Vice Chair Carollo: Commissioner. Ms. Bru: -- if you want to get it on the tax bill. This is a resolution. Commissioner Gort: It's a resolution. I know that. Ms. Bru: And it has to be adopted today ifyou want to get it on the tax bill. Commissioner Gort: Better table then. Mr. Migoya: Some time tonight. Before tomorrow is what we're saying, before tomorrow morning. Chair Sarnoff. So that was -- Mr. Migoya: I have ordered pizza, guy, by the way. They should be out there pretty soon. Chair Sarnoff. So my thinking was -- Vice Chair Carollo: I know the feeling. Chair Sarnoff. -- in the event this Commission doesn't make changes to your budget and we now have a need for capital expenditure -- I'm just going to put a round number out there -- ten million bucks. So many of that's going to go to Fire. So many of that's going to go to Police. And so many of that's going to go to Sanitation. If in fact, we can't close that gap, I want to be able to at least leave a Commissioner up here or two or three that would be willing to think about a $2.50 increase in their garbage fee so that at least we've taken care of one capital expenditure. Mr. Migoya: Yeah. Total capital expenditures necessary, including the Solid Waste trucks, will City of Miami Page 147 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 be $14 million total. Chair Sarnoff All right, so -- Mr. Migoya: At this point we're at eight million. Commissioner Gort: Let's table it until later. Chair Sarnoff All right. So let's -- we're going to table this one. We'll bring this one up after we take up the actual line item budget. All right, so that leaves BH (Budget Hearing) -- yes. Commissioner Dunn: I just -- I know we're going to table it. Just -- for those who might be considering among our colleagues possibly looking at if they see no other way, what are we going to do in the interim of that? Is the Administration going to provide some -- what are we --? Go item by item? Okay, okay. All right. Chair Sarnoff My guess is once we go through the budget item by item and -- I -- you know what, we're going to slog through this. Commissioner Dunn: Okay. Chair Sarnoff We're going to have pizza. We're going to slog through this. Mr. Migoya: This makes sense. I mean, absolutely. Chair Sarnoff Right. Mr. Migoya: And Commissioner Carollo's absolutely right; we need to go through all the departments to understand exactly where we are. And then at the end, we can figure out where everything is. Chair Sarnoff Okay. All right, so table it -- go ahead. Commissioner Dunn: No. Mr. -- Chair Sarnoff I'm sorry. I'm sorry. Commissioner Suarez: Can we take a two -minute break before we start that? Chair Sarnoff Oh. Commissioner Suarez: You know, two minutes. Chair Sarnoff Before BH.10, sure? Commissioner Suarez: No. I think we were going to -- you said you were going to table that -- Chair Sarnoff Table that. Take up BH -- Commissioner Suarez: -- and then we're going to go to the budget, right? Or -- oh, we're not? Okay. I'm sorry. Chair Sarnoff We have what -- we have three -- one, two, three, three more things to get through. I think we can get through those pretty -- City of Miami Page 148 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Suarez: I agree. Chair Sarnoff Well, maybe not. Let's see. [Later..] Chair Sarnoff All right. That leaves us to go back to -- Vice Chair Carollo: The tabled item, which I believe was -- Chair Sarnoff I'm just trying to (UNINTET,TIGIBT,F). Commissioner Dunn: BH (Budget Hearing) -- Vice Chair Carollo: -- the 9 -- Commissioner Dunn: -- 9. Vice Chair Carollo: BH.9. Priscilla A. Thompson (City Clerk): BH.9. Mr. Migoya: Yep. Chair Sarnoff BH.9. All right, BH.9 was tabled with a motion and a second, right, Madam Clerk? Ms. Thompson: I'm sorry. Just one second. No, it was not. It was just tabled. We didn't have a motion -- Chair Sarnoff Just tabled? Ms. Thompson: -- or a second. Commissioner Dunn: I thought we did. Chair Sarnoff I thought there -- Commissioner Dunn: Didn't we have --? Yeah, we -- Chair Sarnoff -- was a motion and a second. Ms. Thompson: No, I'm sorry. There was an original motion -- Commissioner Dunn: Right. Ms. Thompson: -- in order to bring it to the floor for discussion, but you never took a vote on that. You went -- Commissioner Dunn: Right, right. Chair Sarnoff But you don't need to do another motion and another second. Ms. Thompson: On -- City of Miami Page 149 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff If it's been motioned, if there's been a second and it's been tabled, am I not correct under Mason's Rules --? Ms. Thompson: Your motion that you made still stands. Ms. Dziedzic: Okay. Ms. Thompson: That's what you're asking me, right? Chair Sarnoff Yes. Ms. Thompson: Thank you. Chair Sarnoff I like the way you do that. Ms. Thompson: So the motion that's on the floor that was not acted upon but still on the floor, was made by Commissioner Dunn and seconded by Vice Chair Carollo on BH.9. Commissioner Dunn: Yeah. Chair Sarnoff All right. Gentlemen, any further discussion on BH. 9? Commissioner Dunn: Mr. Chair. Chair Sarnoff You're recognized for the record, Commissioner Dunn. Commissioner Dunn: First, I want to sincerely and genuinely commend my colleagues, but especially Vice Chairman Carollo, in looking at, with a fine-toothed comb, the budgeting department's -- and really, that exercise helped confirm some of my feelings about the solid waste fee even more so. That's what it did for me because it still leaves a lot hanging in the balance, and -- I mean, with the fact that we're about 1.5 million, according to the Manager's numbers, short in the Police Department, about 1.5 million short in the Fire, maybe another million -- I think it was about 2.5 million and another 2 million shy in the Solid Waste. It really, for me -- as tough as it is to assess the $30, but when you look at it as you broke it down in its lowest terms, about $2.50 a month, I think it really convinces me more how this is a necessity. Andl stated earlier that we will pay now or pay later, and I'm more convinced of that now, andl know we had all of our speeches, but I just -- I -- that -- just from an observant standpoint, from a listening standpoint, from examination standpoint, from a check -and -balance standpoint, we are - - we're dealing with a bare -bones budget, andl hope that even those in the public and even those who might view this later will even be more convinced that we really do have a crisis, andl think this will be, really, the only -- one of the only ways that we can assist with our Solid Waste, our aging and ailing department when it comes down to equipment. So that even convinces me more of the need for this fee increase. Chair Sarnoff All right. Anyone else wish to speak? I'm going to just say one last thing on this. Sorry. It's not always easy to do the right thing up here. You all went through it very recently. It takes sometimes a lot of courage. Sometimes it challenges your convictions. I don't think there's any right-minded person that couldn't say this City needs a garbage fleet that operates. It doesn't have a garbage fleet that operates right now. For $2.50 a month you can have a garbage fleet that operates. But one exercise I learned in this drama today is that after spending - - we'll be out of here around 3:30 -- we were able to find, possibly, $600,000 of what the Manager perceives to be upwards of a $10 million need, and we're hoping there's no run-offs, but in a uniquely Miami way, something always happens in the City ofMiami, and there's always - - you can expect the unexpected here. Andl think the one thing I'd urge anyone to do who's about to vote right now is really ask yourself it's probably the one service we do well. It's the one City ofMiami Page 150 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 service we're on the verge of not doing well because we can't continue to do it with the fleet that we have right now. There may have been some mistakes made earlier with Lodal and that's sort of as I say, water under the bridge, but for $2.50 we can maintain what we've always said -- I think everybody refers to it up here as the Cadillac service, andl think it's imperative that this City maintain -- andl was here when we got an award for being the cleanest city in America. I wasn't sure we deserved it, but they judged it on the amount of garbage that we picked up. That was how I believe Forbes magazine rated us the cleanest city in America. It was based on the volume of trash we picked up. Andl don't know if you all are aware of this, the following year we didn't pick up the same volume of trash 'cause we didn't have the fleet that we had the previous year. This year's fleet will be worse than last year's fleet. And I know politically people want to stay and want to be able to say things andl know running for office we all do it and we all feel like we need to say something to our respective constituents, but sometimes you just need to do the right thing, you know. What do they say? Damn the torpedoes and full steam ahead. We did it once before on Tuesday. We did the right thing. We need to do the right thing today. So it is a resolution. All in favor, please say "aye. Commissioner Suarez: No. Commissioner Dunn: Aye. Chair Sarnoff. Aye. Vice Chair Carollo: No. Commissioner Gort: No. Ms. Thompson: So that I'm very clear on this, I'm recording your no votes as Vice Chair Carollo and Commissioner Suarez. Is that correct? Oh, and Commissioner -- Chair Sarnoff. I think Commissioner Gort -- Ms. Thompson: -- Gort. Then that means that the motion failed, 2-3. Mr. Migoya: Then we have to make another one with another rate 'cause we have to set the rate, no? Chair Sarnoff. It goes back to last year's rate is my under -- Does not? Julie O. Bru (City Attorney): This is the resolution fixing the rate. You have to adopt the rate. This is not the millage. This is a special assessment. You have to adopt a rate for the garbage. Chair Sarnoff. Okay. Ms. Bru: This is not -- Vice Chair Carollo: So -- Ms. Bru: -- a millage. Vice Chair Carollo: -- in other words, this was to cap -- Chair Sarnoff. This was the rate. This was picking the rate. Vice Chair Carollo: So was -- City of Miami Page 151 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Bru: You had previously notified the residents in the trim bill that the garbage fee was going to be 395 -- Vice Chair Carollo: Right. Ms. Bru: -- what you had before you here. You couldn't have gone any higher -- Vice Chair Carollo: Right. Ms. Bru: -- today, but you do have to adopt a rate today. You have to adopt the garbage rate so that the assessment can then be imposed utilizing the uniform tax method. Mr. Carswell: Tax method through the County. Other than that, then the City would have to provide notice to all the homes that would be impacted. Ms. Bru: In order to bill your garbage fee with your tax bill, you have to adopt your rate today. Chair Sarnoff Gotcha. I got you. Commissioner Gort: Make a motion to establish the rate at 365 as last year. Vice Chair Carollo: Which is the current rate, same as -- same -- is the current rate, correct? Commissioner Gort: Right. Chair Sarnoff Three sixtyfive is this year's rate, correct? Commissioner Gort: Right. Commissioner Dunn: Right. Mr. Carswell: Yes. Chair Sarnoff All right. So we have a motion by Commissioner Gort. Is there a second? Vice Chair Carollo: Second for discussion. Chair Sarnoff Second by the Vice Chair. The Vice Chair is recognized. Vice Chair Carollo: And are there any options? I mean, we have to establish this today, correct? Mr. Carswell: Yes. Vice Chair Carollo: Okay. Commissioner Dunn: What -- Mr. Chair? Chair Sarnoff You're recognized. Commissioner Dunn: Mr. Vice Chairman, did you have the floor? I didn't want to -- Vice Chair Carollo: No. Commissioner Dunn: Okay. I'm moving a little slow. What is a --? I mean, if we lowered it City of Miami Page 152 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 under the 395 to a number -- my mind is moving a little slow; it's 3 o'clock, but I'm trying to get it -- would that help any? I mean, maybe not the 395 -- Mr. Migoya: Well, no. The 365, it goes back to what we previously said, which is I will ask you to allow me to take a million seven fifty from the capital account of Solid Waste so we can make up the difference in the general fund. Commissioner Dunn: Let me ask this question, 'cause I thought when we voted on the first reading that we could go up to 395. Mr. Migoya: That's correct. Commissioner Dunn: So can't we go somewhere in between there or no? Mr. Migoya: You just did. The motion is at 365. Commissioner Dunn: Right. There's a second for discussion and that's what -- I'm asking -- Mr. Migoya: Oh, I see. Commissioner Dunn: -- that question now. You understand what I'm saying? It doesn't have to be 365, but maybe a little bit higher between 395 and 365 as a friendly amendment. You're not in support of any -- Will it help? Joe Simmons: Is this is a public hearing? Chair Sarnoff Go ahead, Joe. You know what -- Commissioner Dunn: Yeah, but he's already -- Chair Sarnoff -- you stayed here 'til 3:15, I think you get to say two minutes. Mr. Simmons: Joe Simmons, Jr., president of the sanitation workers union. Last year the City Commission did the very exact same thing. Like Commissioner Dunn said, you could either pay me now or pay me later. If our mission of our department is to provide -- to be self-sufficient, then we have to have the resources. Number one, the way you all do your budgeting, Solid Waste is a department that does two things. One, it receives the solid waste fee for the residents to provide that service. They also manage the franchise hauler agreements. So from a budgetary standpoint, you are setting us up for failure. There's always speculation every year comes around budget time that we have certain people on the dais that basically are setting us up for failure for privatization. That's always been a topic that's been dealt with at least the last 40 years. Doing this now is going to have a definite effect on the services. You imposed a purchasing freeze, which some of our equipment can't be serviced by GSA (General Services Administration); have to be sent to outside dealers. So we have a number of pieces of equipment that's out at the dealership and it's not being repaired because the City has a freeze on purchasing. That along with all the aging fleet that we have, we don't have much to operate on. One truck down every given Monday, every given Tuesday, every given day of the week, there are problems with equipment because we don't have it. We have to have equipment to operate. If we're going to be a department that provides services to our residents, we have to have the stuff that we need and by doing this is like tying our hands. You are saying you -- on one hand, you want us to provide the service, but we need to be empowered with the proper tools to do the job. If you're -- let's say if you're an attorney and if you don't have the proper tools, then that makes you inefficient. By doing this action -- I was hoping that the Commission would support this, 14 cents per week. That's what -- 14 cents a pick up, four pickups; two residential garbage, one trash, one recycling. We provide street cleaning service -- a number of services we provide for City of Miami Page 153 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 that amount of money. And apparently, it's not the political will to do the right thing up here. I can see that. I'm hoping that you reconsider this because at the end of the day, the people want their garbage picked up. They want their trash picked up. I get calls every day from residents. When is my garbage going to be picked up? I can promise you, ma'am or sir, today -- it'll be picked up today. And by doing this, we don't have money for equipment. The last major fleet replacement plan they had was in 1995 when they bought all new equipment, but what has happened, the City thought that they were going to save money. They got rid of the backyard collection system and went to this auto -- went curbside, then they went to this automated collection system. We went to a five -man crew to a one-man crew. So I just ask that -- urge you guys in your wisdom, reconsider this. Not just look at it from a political standpoint because there's an election coming up this year. This is really a decision that you guys have to make. At the end of the day, you got to be responsible for your constituents, but I just ask you in that wisdom, really, really think about this long and hard. Commissioner Dunn: Mr. Chairman. Mr. Simmons: Thank you. Chair Sarnoff All right. Yes, sir. You're recognized. Commissioner Dunn: Would the maker of the motion consider maybe raising it a little bit? I'm just throwing it out there. I guess I can do that 'cause -- Commissioner Gort: I'm open for any suggestions. Commissioner Dunn: Maybe to -- Commissioner Gort: Let me tell you something. In your neighborhood and my neighborhood, we have the amount of foreclosures. We got 13 percent unemployment. And know 2.50 a week or whatever you want to call it, a month, $30, you'll be surprised how many people on fixed income, they have the homes. They're going to increase the taxes that's being increased by the school. It's being increased by South Florida Water Management. It's being increased by Miami -Dade County. Those things keep adding up. So let me tell you, I know we going through a crisis but our people in the town are going through tremendous crisis too. I mean, to you $30 is nothing. A lot of these people, $30 would mean do I pay, do I eat, or do I -- or what payments do I make this month? Commissioner Dunn: So -- ifI may, Mr. Chairman. Chair Sarnoff Go ahead. Commissioner Dunn: And concur with you. I mean, probably, we understand that, andl definitely understand the foreclosures, the -- but when I think about the other day, and there was a dead animal in the street and it was swollen, andl realized that we could even call on Solid Waste -- and I'm going to be graphic --flies swarming, maggots, everything, andl was able to call Solid Waste and get that picked up. I just think if we could consider -- I understand that maybe not the 30, but if we go up maybe $15 so now we're -- that's half of the 30. I don't think -- I know it's tough, but I don't think $15 is going to make or break more someone who's going through a bankruptcy, I don't think, or a foreclosure. It usually is a greater problem than that. And $15 -- I know if you keep adding, it does add up, but I just think $15 would not be tremendously consequential. So I would ask you to think about it and maybe consider at least raising it some because if we remain the same, we're headed down a path that I don't know if we're going to be able to come out of it. Because the worse thing -- the worst situation is to have a dirty, nasty, smelly city, and that's one of the things that I want to change in District 5, the lot clearings, the -- no, but that's one of the -- with the Code Enforcement, the cleanup, all of that. City of Miami Page 154 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 So I -- it's a challenge, it's tough, and we both have a similar situation, but if you could consider something maybe going up, I think it would do the City -- I don't know. Commissioner Gort: Are you bringing a friendly amendment? Commissioner Dunn: I'm sorry; I didn't hear you. Commissioner Gort: Are you bringing up a friendly amendment? Commissioner Dunn: Okay. I'll make a motion that we -- Ms. Thompson: Excuse me. Chair Sarnoff He's making a friendly amendment. He's not making a motion. Commissioner Dunn: Okay, a friendly amendment to $380. Ms. Thompson: Procedurally, I just want to make sure we're all on the same page. Chair Sarnoff He's asking the maker -- Ms. Thompson: IffI might, Chair. I just want to make sure. You originally had a resolution calling for an amount; that failed. Now what I'm recording is that originally Commissioner Gort has now made a modification to the resolution of $365 that was seconded by Vice Chair Gort -- I'm sorry, Vice Chair Carollo. It's early in the morning. So I just want to make sure we stay on track now. We have a modified resolution coming before us. So now next, we're going to do what? Commissioner Dunn: I'm asking would the maker of the motion consider maybe making the motion to be 380 instead of 365, as a friendly amendment. Commissioner Gort: The maker of the motion accepts. Chair Sarnoff Does the seconder accept? Vice Chair Carollo: I accept. That doesn't mean that I'm going to vote yes for it, but I will accept. Chair Sarnoff Understood. Any further discussion, gentlemen? Commissioner Dunn: No, sir. Chair Sarnoff All in favor, please say "aye. Commissioner Suarez: No. Vice Chair Carollo: No. Chair Sarnoff Aye. Commissioner Gort: Aye. Commissioner Dunn: Aye. Ms. Thompson: Once again, I'm recording the no votes as Vice Chair Carollo and City of Miami Page 155 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 BH.10 10-00941 Fire Fighters and Police Officers Retirement Trust Commissioner Suarez. Is that correct? Commissioner Suarez: Correct. Ms. Thompson: Then your resolution that is modified is adopted, 3-2, for $380. Mr. Simmons: Yes. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF MIAMI FIRE FIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST FUND FOR FISCAL YEAR COMMENCING OCTOBER 1, 2010, AND ENDING SEPTEMBER 30, 2011, IN THE AMOUNT OF $2,228,155, EXCLUDING NORMAL COST, TO PROVIDE FOR THE ADMINISTRATION OF THE RETIREMENT TRUST FUND. 10-00941 MEMOS.pdf 10-00941 LEGISLATION.pdf 10-00941 Exhibit SUB.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Gort, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II Note for the Record: Item BH.10 was discussed and deferred to the Second Budget Hearing scheduled for September 27, 2010. Chair Sarnoff All right, let's go back on the record. We have BH.10, BH.11, BH.12, in sequence if we choose to. We also have two items that we're holding on. Is there a pleasure of this Commission how they want to proceed? Vice Chair Carollo: Suggestion, let's just go down the -- Chair Sarnoff All right. Vice Chair Carollo: -- line, BH.10. Chair Sarnoff Let's take up BH.10 then. Vice Chair Carollo: BH.10. Tom Gabriel: Good evening, Mr. Chair, Commissioners, Mr. Manager. Tom Gabriel, 1895 Southwest 3rdAvenue, representing the FIFO (Firefighters and Police Officers) budget. A resolution of the Miami City Commission, with attachments, approving and adopting the annual budget of the City of Miami Firefighters Police Officers Retirement Trust fund for fiscal year commencing October 1, 2010 and ending September 30, 2011, in the amount of $2, 381, 355, excluding normal costs to provide for the administration of the retirement trust fund. Chair Sarnoff All right. Let me open up a public hearing. Is there anyone from the public wishing to be heard on BH.10? Tom Deresz: Right here, sir. City of Miami Page 156 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnofff. Yes, sir, you're recognized for the record. Mr. Deresz: Thank you very much. Tom Deresz, 1852 Southwest 24th Street. I probably have two minutes. But Mayor Regalado and Commissioners, thank you for your efforts to balance the budget. Thank you very much. To finish what I was saying earlier, I don't -- the City, before you spend any money on the red-light cameras, I think there's an issue to supplement the retirement funds and the City budget. Please be aware that the cameras don't prove who was driving -- who the driver was that was committing the moving violation, and thus, these offenses can probably be thrown out of court. I'm not an attorney, but I mean, that's a no-brainer. For example, I have several cars in the family and any member of my family could be driving that car when that picture is taken, so I think that's going to go up to the Supreme Court, the whole concept. Again, as I did in 2007, I urged not only the Fire Department, but all the City employees that these retirement programs would be encumbered under the Florida Retirement System and quit wasting the time and money that the City spends on this. Thank you very much for your time. Chair Sarnofff. Thank you. Anyone else from the general public wishing to be heard on BH.10? Hearing none, seeing none, comes back to the Commission. Do we have a motion? Vice Chair Carollo: So moved for discussion. Commissioner Gort: Second. Chair Sarnofff. Motion by the Vice Chair, second by Commissioner Gort. Who wishes to be recognized? Vice Chair, you're recognized. Vice Chair Carollo: Mr. Gabriel, the first thing that jumped out at me was the last line item. I see that you had an increase of almost double from 150,000 to 320,000 for equipment and programs. I don't have a break up of that. Can you explain a little bit what that is and why such a big increase? Mr. Gabriel: Yes, Mr. Commissioner. What that is is a new system for tracking -- it's a system we already have, but an upgrade to a system called Pension Gold. It is the equivalent of what the City has with Oracle. It takes in all the information. It processes retirements, pulls all the information that we need to do it. Last year in front of this Commission, we appeared; the Commission asked us to take a 15 percent cut. We had a signed agreement with these individuals, with Pension Gold, of which we had to then go back and renegotiate between the first and second. We renegotiated for higher payments this year, and so that is part of that payment for replacing and upgrading our system that's equivalent, if you would like at it to Oracle. And part of the cost is unlike Oracle, we've done the full conversion with a full conversion protocol. We're going to run it in parallel so that we don't have the problems that we ran into on the general Oracle pay system. You know, obviously, with the retirees out there, they're expecting their checks on the 15th, and we can't afford them to be calling and saying it didn't come in, didn't come out. So when we go live sometime in May of next year, I believe it is, we're going to have that system up and running, had been already run parallel. So yes, it's a big increase. Some of that was taken out of last year's budget, which was cut. Vice Chair Carollo: Additional question. Mr. Gabriel: Yes, sir. Vice Chair Carollo: In the retirement contributions, I see an increase of what appears to be 94,000. What's this all about? Mr. Gabriel: I do believe that that's going to be corrected almost in half between this meeting and the next meeting if -- or adopted knowing that we will look at that. I think we have an issue City of Miami Page 157 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 here. I asked about it myself as far as -- potentially, that's a carryover from the payment from last year that hasn't been paid yet. So part of that's going to be paid from this year's budget, which the money's there for last year's cost. Vice Chair Carollo: The problem with that is that this is a resolution, so we don't get two bites at the apple, so to speak. Once this is passed -- and I'm assuming, you know, that it passes -- I would probably -- Mr. Gabriel: I've been told -- Vice Chair Carollo: -- suspect there's some other -- Mr. Gabriel: And let me just double check what the amount is and -- although, I can't make a decision for the Board, obviously the Commission can pass what they need to pass, but give me one second. I've been told that the amount that's carried over here that should not have been is 83,000. Vice Chair Carollo: Instead of 196, 83,000? Mr. Gabriel: No. Eighty-three thousand dollar reduction, so one thirteen. Vice Chair Carollo: So instead of 196, it's actually 113? Mr. Gabriel: Correct. Vice Chair Carollo: Okay. One of the things that I had discussed with -- and mentioned this before with the Mayor and the Manager, which was present on Saturday, which the Manager so much enjoyed for seven hours, was -- Mr. Migoya: That's okay; I didn't get to see Miami lose. Vice Chair Carollo: -- the actually -- the actual reduction of all agencies, trusts, and so forth of 5 percent, so that is something that, you know, we had discussed. However, I'm seeing that you actually -- your budget actually increased. So I would suspect that -- what the Manager and the Mayor andl spoke about was actually reducing to last year's amount and then a 5 percent decrease. And Mr. Mayor, chime in if you like, and Mr. Manager, if I'm correct in what we spoke about. Mayor Tomas Regalado: Sure. There is -- they're asking for actually an increase to last year's operational budget for the three pension board. And last Monday Budget called them to tell them that what the Administration would consider would be last year, not this year. This year the proposal is for a large increase, and this is what you have here. And the proposal came from the pension boards, but the Administration advise them last Monday that they needed to, number one, understand that the Administration will not propose an increase in operation, and number two, that the Commission will most likely ask for them for a 5 percent reduction on last year's budget because you're asking that to every department of the City. So this number, I don't think that is the right number, nor I think that you should vote on it if we don't know exactly if they are capable of going the 5 percent down and using last year's budget, not their proposal. Mr. Gabriel: May I respond? Vice Chair Carollo: I'm not chairing the meeting. The Chairman is. Mr. Gabriel: Mr. Chair. City of Miami Page 158 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff. Go ahead, you can respond. Mr. Gabriel: The notice that was given to our board, I can't speak for any of the other boards, was a phone call last night at 8 o'clock. And I've heard from our administration that they received word at 8 o'clock. There was a call from one of the staff members from Budget yesterday afternoon or morning, I'm not sure; did not speak to anybody. But we found out about those numbers that the Mayor's talking about not last month, not prior to. This was when we found out about what the concerns of the City. Prior to that, we received nothing. It's not a organization that comes here and ask for a lot of stuff. Our individuals are under a different pay salary than everybody else. They're under a smaller retirement than what everybody else had. We have less people with more retirees. The City is now asking for changes in their pension. Our actuary costs are here. So you know, it's all fine and good to talk about these 5 percent cuts, but when it comes time to pay for the actuary to do the calculations, then we have to have the money to do that. So the only increases that seem to be unusual or out of the ordinary, I've explained the first one, which was the equipment and the retirement. The salaries are a little bit different. Like I said, they're under the 2007 pay scale, not what current employees get today. Our retirement benefits, we have 25-year employees; they get the same as about a 8- or 9-year City employee. So -- andl do believe that you're going to want the actuaries to meet. There was a hearing this morning that talked about changes and that the actuarial process has to be followed andl don't believe that it's, you know, something that is attainable to go to last year's budget where you cut 15 percent to last year's budget minus 5. So you know, obviously, that's how I see it with this budget. And certainly, any more questions, I'll gladly answer. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. Go ahead. Vice Chair Carollo: I have a question. Do we need to pass this resolution at this meeting or can it be deferred until the 27th meeting? Ms. Bru: You have to pass it before the end of the fiscal year, unless they're going to continue to operate under last year's budget. But the specific answer is you don't have to pass it today. Vice Chair Carollo: Right. So we -- thank you, Madam City Attorney. So in other words, we could have time for them to review their numbers and so forth and see what the City is asking for and compare --? Mr. Gabriel: Absolutely. We have no problem with that. Again, we only heard about it yesterday, last night, depending on who you listen to. And so we're more than willing to go back and look at these. However, I -- knowing from last year, finding the cut for 15 percent was tough, but we did it by delaying a payment. As Capital Improvements and everything else, a system that works to pay your retirees, we have 283 people that will be leaving between now and when you set that budget based on policy. They're going to leave and so we're going to need even more actuarial work done to that. So we would be more than happy to go back and look at this. Vice Chair Carollo: I would make a motion to defer then -- Chair Sarnoff. All right. Vice Chair Carollo: -- to the September 27 budget meeting. Chair Sarnoff. There's a motion by the Vice Chair to defer to the September 27 -- Commissioner Suarez: Second. City of Miami Page 159 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff -- second by Commissioner Gort. Commissioner Suarez: I have a quick question, ifI can -- ifI may, now that he's here. Chair Sarnoff Sure. Go ahead. Mr. Gabriel: Anything that you can ask now makes it easier. Commissioner Suarez: Yeah. Mr. Gabriel, you said -- you just said that -- I think you just said it, and maybe I didn't understand that correctly 'cause it's late -- 263 people were going to be retiring. What was thatthat you just said at the end? Mr. Gabriel: Between now and the second of -- I think it's the October 2 -- no. For the last -- we've had 243 that we approved on Friday last to retire; not all of them may actually retire. But we have had a total of 283 people put in that will either retire on that -- that's dropping, going into the DROP (Deferred Retirement Option Plan). I'm sorry, and that -- Commissioner Suarez: Yeah. Mr. Gabriel: -- under pension laws, that's what it is. Commissioner Suarez: Yeah. Mr. Gabriel: That pretty much doubles what's in the DROP now. Commissioner Suarez: I just wanted to -- from a planning perspective, my concern was obviously that we were going to lose 263 people in a month. Were we prepared for that, you know? Mr. Gabriel: Right. I gotcha. No. It's -- Commissioner Suarez: So -- Mr. Gabriel: -- for pension purposes, it's retired when you go into the DROP. Commissioner Suarez: I understand. Mr. Gabriel: They're not -- Commissioner Suarez: Yeah. Mr. Gabriel: -- severing service from the Department. Commissioner Suarez: Okay. Mr. Gabriel: Is there anything else I can -- other concerns that I can look at while we go back and meet with Administration? Chair Sarnoff All right. So we have a motion. We have a second. All in favor, please say aye." The Commission (Collectively): Aye. BH.11 RESOLUTION 10-00942 City of Miami Page 160 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 General Employees and Sanitation Employees Retirement Trust A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF MIAMI GENERAL EMPLOYEES' & SANITATION EMPLOYEES' RETIREMENT TRUST ("GESE RETIREMENT TRUST FUND") FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011, IN THE AMOUNT NOT TO EXCEED $3,182,263, EXCLUDING NORMAL COST, TO PROVIDE FOR THE ADMINISTRATION OF THE GESE RETIREMENT TRUST FUND. 10-00942 MEMOS.pdf 10-00942 LEGISLATION. pdf 10-00942 EXHIBIT. pdf 10-00942 GESE Memo 9-27-10. pdf 10-00942 Legislation 9-27-10.pdf 10-00942 Exhibit 9-27-10 SUB. pdf Motion by Vice Chairman Carollo, seconded by Commissioner Gort, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II Note for the Record: Item BH.11 was discussed and deferred to the Second Budget Hearing scheduled for September 27, 2010. Chair Sarnoff Are we going to want to do this with the other two? If we are, I'd just as soon do it. BH.11, which is the sanitation -- General Employees and Sanitation's Retirement Trust, GESE. Are we -- you going to want to -- do you know? Vice Chair Carollo: We're going to probably be saying the same thing -- Commissioner Suarez: Yeah, so let's do the same thing. Vice Chair Carollo: -- that we're looking for 5 percent, but you know, let Charlie come up and -- Chair Sarnoff All right. BH.11. Vice Chair Carollo: Or at least acknowledge that, you know, we're thinking of deferring it for, you know, 5 percent. Chair Sarnoff Let them present and we'll see what -- Vice Chair Carollo: Yeah. Ron Silver: Yes. Ron Silver, attorney for the General Employees' and Sanitation Employees' Retirement Trust, 407 Lincoln Road, Miami Beach. We're asking you to approve and adopt the annual budget of the City of Miami General Employees' and Sanitation Employees' Retirement Trust for the fiscal year commencing October 1, 2010 and ending September 30, 2011, in an amount not to exceed $2, 842, 263, excluding normal costs to provide for the administration of the GESE retirement fund. Chair Sarnoff All right. Is there anyone from the public wishing to be heard on BH.11, which is the GESE retirement fund? You're recognized for the record, sir. Don Deresz: Don Deresz, 1852 Southwest 24th Street. Through the Chair, listening to this and from the television at home in between, from the dais, the Commissioner's speaking about some meeting that took place Saturday and it sounded like a party, you know. I was mentioning it to Mr. Silver there. It's not right when people are losing salaries, retirement, and jobs. So I wish City of Miami Page 161 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 the (UNINTELLIGIBLE) -- Chair Sarnoff Let me clam. The Vice Chair and the Manager met on a Saturday -- Mr. Deresz: Thank you, sir. Chair Sarnoff -- which I think sort of is a credit to both of them. They worked for more than seven hours, and I'm not -- yeah, on budget -- aware of any -- I think they had a good rapport. I think they had a good interplay. I think they spent a good amount of their time on revenues. I'm not trying to tell what happened. But I don't see any partying going on. As a matter of fact, I see a man who is an accountant, who is probably giving up a Saturday to his wife, I'm just guessing, or to his business, and he is working hard on the City ofMiami budget, andl don't know how anybody could infer or suggest that he or the City Manager were partying. I don't think these guys see each other on Saturdays necessarily to party. If you've ever seen the Vice Chair, he comes with more papers and computers than you can shake a stick at. Mr. Manager, I think you would acknowledge that he is extremely engaging on numbers and challenge you on numbers. And one thing I can say in my observation for the Vice Chair, he has improved this process immeasurably and -- Mr. Deresz: I'm sure, sir. Watch the tape. Chair Sarnoff Okay. Well, sometimes you're right. The camera may be less kind to him than it should be, but the man did an honorable day's work away from his family and away from his practice. Mr. Deresz: I'm sure. Chair Sarnoff And I'm -- I hear what you're saying and I'm not going to take it offensively and I hope he doesn't either, but -- Mr. Deresz: Thank you. Chair Sarnoff -- I want to clam the record. Mr. Deresz: Not my plan to -- Chair Sarnoff Both these men were working. Mr. Deresz: -- not my point to be offensive. Thank you. Commissioner Suarez: Mr. Chairman. Chair Sarnoff Yes, sir. Commissioner Suarez: Andl think maybe we were all kind of being facetious about the fact that they got together on a Saturday, but the fact of the matter is that he was working for seven hours on a Saturday. Mr. Deresz: I'm sure he was. Okay, watch. Take a look at the tape, guys. Commissioner Dunn: I might as well chime in, Mr. Chairman. Chair Sarnoff Go ahead. Commissioner Dunn: I don't think there's probably -- well, all of us, but when it comes down to City ofMiami Page 162 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 numbers, I have the utmost respect for my colleague and Vice Chairman Carollo in his efforts to try to make this budget work. Andl know it may have come across that way because after long hours of trying to go through this arduous process, it can become very monotonous. And so sometimes it's not a joke to anybody whose livelihood is at stake. But we are really -- we meaning all of us -- between a rock and a hard place. We don't want to make some of these decisions, but in some cases, we have no other alternative, and it's very excruciatingly painful. It is. It's not a joke. But sometimes in the midst of that, trying to see where we can find a dollar here and a dollar there where we won't have to make cuts that -- but we're down to the bone, though. So I can appreciate -- Mr. Deresz: Thank you very much. Commissioner Dunn: -- you from the outside looking in, but trust me -- Mr. Deresz: Yes, sir. Commissioner Dunn: -- this man and all of us, but especially Vice Chairman Carollo, has gone over and beyond the call -- Mr. Deresz: Yes, sir. Thank you -- Commissioner Dunn: -- of duty as it relates -- Mr. Deresz: -- for informing me that Saturday was a working engagement. Thank you very much. Vice Chair Carollo: Mr. Chairman. Chair Sarnofff. Sometimes it's better for others to say it before you. Many Deresz: That's fine, Commissioner. Vice Chair Carollo: More than anything, I want to thank my colleagues because what you've shown me right now is that I have gained your respect, so you know, that really does mean a lot to me. And if there was only -- if there was any joking around, it's that we can't believe that we're on a Saturday here and the only thing that we were not doing was playing. I can assure you. Mr. Deresz: I'm sure. Just -- thank you, sir. Commissioner Gort: Let's face it, the whole month of August, we were meeting on Saturdays. Commissioner Dunn: Saturday. Commissioner Gort: And although we had all those Saturday meetings, he was willing to meet on other Saturdays -- Commissioner Dunn: Eight o'clock meetings. Commissioner Gort: -- to work on it. Mr. Deresz: Right. Thank you, gentlemen. And I'll finish by saying, I mentioned earlier as far as billboards, illegal billboards, who's responsible for collecting the fines? And also with the new billboards, with the LCD (Liquid Crystal Display) billboards, have their permit fees increased? Are we collecting those fees to help with our City budget? Thank you, gentlemen City of Miami Page 163 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 and ladies. Chair Sarnoff. I'm tempted to answer that, but we haven't answered it so far, so I think I'll leave it at that. But I could say one thing, the City of Miami has the most robust mural billboard fees in the nation. I could say that. I probably just did. All right. You've presented. We had the gen -- I'm sorry. Public hearing. Anybody else in the public? Charlie, you want to speak? Charlie Cox: Please don't take this wrong. I know how long you've been here and everything else, but I'm going to tell you, just to go back to what happened in negotiations. You're asking for us to take a 5 percent reduction in the pension when it is impossible. I can tell you that you asked for $9.8 million -- that was his number -- from pension cuts. I offered at negotiations $12.6 million. And you can go to your actuaries; they can give you these numbers. And now what they've done to our pension plan has saved $16.4 million, okay. Now every time you make these changes -- You know what? You have an Oracle system. Just think how much you've spent on it, and it still can't get it right. And now you're going to tell people not to get their pension checks right when the cost of the pension is going to go through this roof for all the actuary studies that our actuary has to do, for all the computer changes that's going to be done, and you're going to sit here -- you know, everything can end up in court. I really don't care. But to sit here and humiliate one group to begin with and now you're going to go to us and try and humiliate us and tell us let's postpone it. It's inevitable, guys. You guys passed all of these. You put all of these changes on us. You're the ones that did that. We didn't volunteer to do that. And now you're going to say, well, we're not going to pay for them. So you know what? I'll be the first one here when my pension check doesn't come through. I spent 35 years for my pension check to come through, and how many other retirees out there depend on that check because they spend a lifetime here? Now we're going to nickel and dime. You know what? You're costs are going up. Believe it or not, there is no way for it not to go up. And when you say this kind of money when you started out, your own numbers, your own professionals -- Let me ask you something. How many of your professionals you hire, all those attorneys, all your actuaries, all of that garbage, how many of them did you come back to them and say we're changing the rules. We ain't paying you this now. How many of them? None of them, I guarantee it. Now I swore I wouldn't lose my temper again, but I'm sorry. You know, you can defer this till next week. You can defer it till the week after, and then it's going to end up in court. Is that what you want? Because Gates is there. And he had a hearing today in court about Gates. But you're going to have to pay it. Because when the pension checks don't go out, you're going to have a bigger problem because you're going to have more Charlie Coxes coming up here and you're going to have more firefighters and you're going to have more police officers. But you guys made the changes. We -- I volunteered to do more than you asked for and now you've cut it even more. But those changes are going to cost big dollars. Because I can tell you, why do you think Gates is there? Because they didn't trust your actuaries. Well, you know what? I'm not either. I'm going to trust Jose. I'm not trusting yours. And now you're asking for cuts after you get all of this money back? It ain't going to happen. How much have you spent on Oracle? Just on consultants alone, I gave you that information. It's not -- it's double this. And now we're going to play games and say come back next week. Chair Sarnoff. Thank you, Charlie. Anyone else wishing to be heard on BH.11 ? Hearing none, seeing none, the public hearing is closed. Mr. Silver, you want to add something? Mr. Silver: Yes, I do. I thought I clamed a couple of points for you. You know, we submitted this budget in May. I believe it was -- I think it was May of this year. And I think what Mr. Cox was talking about is this, in one aspect anyway, that as a result of the changes that you passed today at your earlier meeting regarding the pension, that is going to require additional actuarial dollars that are going to have to be spent, which is not included in this because obviously, you just did this today and we submitted this budget at that time. And changes to the software, as was mentioned by our counterparts at FIPO, that -- all that stuffs going to be changed and that cost significant amount of money unfortunately, but it has to be done because we have to do the City of Miami Page 164 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 calculations in the appropriate manner for our retirees. So this 2.8 figure is not even adequate based upon what you all did this morning, so we need more money there. Plus, I have to tell you that the two funds, the FIPO fund and our GESE fund, have not been treated as departments of the City in the past, all right, and we have stated that we don't believe we're departments of the City under the Gates case. So when you talk about doing the 5 percent across-the-board for departments and agencies, we do not -- we never have fallen into that category andl don't think we should fall into that category. The way I read the Gates case is that you have to pay for the administration. The proper administration has to be a reasonable cost. And you know, that's what we feel we've submitted to you is a reasonable budget. And l just wanted to clam those two particular points so you know where we are. And by the way, Commissioner Carollo, I just got this over the weekend. I don't know what the heck I'm doing with it, but maybe I can come and you can help me out a little bit with it. Chair Sarnoff All right. Commissioner Gort. Commissioner Gort: Mr. Chairman, I understand there's going to be a lot of questions coming up that needs to be answered about the pension, the new plan, how it's going to work. My understanding is I don't believe there's really an understanding with the -- the impact that's going to make on this pension and the -- I think, in looking at it, I think we should -- they should come up with all the questions that they have on the pensions. We, ourselves -- I personally have questions. They made the statement today, do anybody that is -- accrued the certain rights, certain benefits, that those benefits will continue to go on. I think that's something that we need to be clamed. And if this is going to be additional expenditure, we got to look at it. I mean, I think we should defer for the reason -- wait a minute. Charlie, don't start getting all upset about it. I'm still with you, okay, so bear with me. I'm trying to help you. Bear with me. You promised you weren't going to be yelling today. Come on. You need to relax. My understanding is a lot of the employees have a lot of questions about our health system. I have a lot of people coming to me; they still don't understand how the pension's going to work, what is going to be done, so I think it's important. And the reason I'm asking to defer, maybe it's not to cut, but maybe you guys can come up with the questions so we can answer and we can have the answers for you for the next week. That's my personal thinking. Vice Chair Carollo: Do it as a motion. Do it as -- Chair Sarnoff Okay. Vice Chair Carollo: -- a motion to defer or I'll make the motion. Chair Sarnoff Okay. Commissioner Gort: Go ahead. Vice Chair Carollo: I make a motion to defer this item to the -- Mr. Cox: That's the problem. When you defer this, they're going to have one day then to make that choice. Do you see what I'm saying? There are people leaving. Vice Chair Carollo: Yeah, but this doesn't have anything to do with that, Charlie. It's my -- this is just the trust. Commissioner Dunn: Yeah. Chair Sarnoff This is just the administration of the trust. Vice Chair Carollo: Yeah, the administration -- City of Miami Page 165 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Gort: No, no. Vice Chair Carollo: -- of the trust. Chair Sarnoff. Right. Not this year. Vice Chair Carollo: Right. Commissioner Gort: No, no. But I see his point. Vice Chair Carollo: Right. Commissioner Gort: His point is there's a lot of people are looking for answer to see if they're going to stay on or they're going to retire. Vice Chair Carollo: But this has nothing to do with it. Chair Sarnoff. Right. I -- Commissioner Gort: But what Charlie is saying is the Administration need to answer this as soon as possible so the employees can understand what are their options. When can we have answers? I mean, I don't know if you've all asked your questions already, or if you can e-mail (electronic) your questions about the pensions. Ms. Bru: Commissioner, I've met with both of the pension board representatives andl told them to please send us questions. Between Larry, myself, my attorney, Diana Vizcaino, and Mike Tierney and James Linn, we're going to take all the questions an prepare a Q andA that will be issued through the Manager, and that will be done hopefully by the end of this week. If we get the questions, you know -- give us the questions as soon as possible and we'll try to get you something by the end of this week. Chair Sarnoff. I thought we talked about this this morning. Did we not? Ms. Bru: And you also asked for examples. Chair Sarnoff Right. Ms. Bru: Yes. Chair Sarnoff. Andl thought this was addressed. But I thought what we were addressing right here is their next year's administration budget. Commissioner Gort: Right. I understand that. Yes. Vice Chair Carollo: Exactly, for the trust. Mr. Silver: Right. Vice Chair Carollo: So -- I mean, in all fairness, I think it's two separate issues. Andl don't think that anyone is really going to go through any hardship by deferring this and taking a look at it. I mean, in all fairness, at least my point of view, Charlie made a very powerful argument with that Oracle. I mean, we all know the City's have -- we all know the City has had its problems with Oracle. But with that said, I don't see anyone going through any hardship by just deferring this, you know, andl think it'll give us all an opportunity to, you know, rethink this and City of Miami Page 166 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 BH.12 10-00943 General Employees and Sanitation Employees Retirement Trust see what's reasonable and so forth. Chair Sarnoff All right, so we have a motion by the Vice Chair, seconded by Commissioner Gort, and that is to defer this to the 27th. Vice Chair Carollo: Correct. Chair Sarnoff Any further discussion, gentlemen? Hearing no further discussion, all in favor, please say iiye. " The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF MIAMI GENERAL EMPLOYEES' & SANITATION EMPLOYEES' EXCESS BENEFIT PLAN ("GESE EXCESS BENEFIT PLAN") FOR FISCAL YEAR 2010-2011. 10-00943 MEMOS.pdf 10-00943 LEGISLATION. pdf 10-00943 EXHIBIT. pdf 10-00943 Legislation 9-27-10.pdf NO ACTION TAKEN Chair Sarnoff BH.12. Ron Silver: Okay, this is 12. Chair Sarnoff I'll tell you, I won't even make you present. I think the Vice Chair is going to make a motion. Mr. Silver: State your name and address. Sandra Ellenberg: Sandra Ellenberg, pension administrator, for the GESE (General Employees' and Sanitation Employees) retirement trust fund, 2901 Bridgeport Avenue, Miami, Florida. This is for $138, 000 for the Excess Benefit Plan. Are you going to also defer that one? Commissioner Gort: What? I'm sorry. I didn't -- Ms. Ellenberg: It's for $138,000. That's what we're asking for for the administrative budget for the Excess Benefit Plan for retirees. There's just 25 retirees in that plan. It's the next item. Chair Sarnoff I'm looking at your numbers. And you said the number's for how much? Ms. Ellenberg: It's 138, 000. I don't know what numbers -- there's no -- what numbers do you have? Mr. Silver: You said 25 people, right? Ms. Ellenberg: Oh, no. Twenty five people, yeah. Chair Sarnoff Total administrative cost, 138,316; total budget 438, 316. You're asking for $538,216, same administrative fee budget. City of Miami Page 167 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Ms. Ellenberg: Right. Administrative is 138, 000. The $400,000 is the actuarial required funding. Chair Sarnoff I understand. Ms. Ellenberg: And we're here for the administrative. Chair Sarnoff The reason I think everybody may have a little struggle is it's not listed in our resolution as to the amount. Ms. Ellenberg: I don't know why -- I'm sorry. I don't know why; it was given to them. Chair Sarnoff It's on BH.12. Go ahead and present. Let's see what -- that's it? That's your presentation, right -- Ms. Ellenberg: Well, no. Chair Sarnoff -- 138,000? Ms. Ellenberg: This proposed GESE excess budget was approved by the GESE board on May 26, 2010. This is essentially a flatline budget with a small decrease from last year. The excess budget was intended to pay the GESE trust participants, whose benefits exceed the amounts permitted by Section 415 and 401(a) (17) of the Internal Revenue Code. For the calendar year 2010, there are 25 retirees in this fund. The City's -- well, I'm not sure what the City staff gave you, since there is no number on your agenda. Mr. Silver: Mr. Chairman, the attorney tells me it's in the body of the resolution, if that's any help. Chair Sarnoff Well, I mean -- no. We're going through our BH.12. It is in the body of BH. 12. It's not clearly stated as maybe the others had been, so -- Mr. Silver: Can you amend the title to include that? Chair Sarnoff No. I think we're all on the same page now. I think it is on page, probably -- in the body of the resolution, it is on page, looks like, 2 -- 4, excuse me, on the backside. I see it. Well, let me open up a public hearing and then we'll see where it goes. Anybody wish to speak on BH. 12? Hearing none, seeing none, the public hearing is closed. Is there a motion on BH.12? Commissioner Gort: Am I reading correctly, my understanding is your total budget is 538,216? Ms. Ellenberg: Yes, you're reading correct. And out of that, $400,000 is -- Commissioner Gort: No. Wait. Ms. Ellenberg: I'm sorry. Go ahead. Commissioner Gort: I'll ask the questions -- Ms. Ellenberg: Okay. Commissioner Gort: -- so just relax. You've been around Charlie too long. Charlie, see what you do? City of Miami Page 168 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Silver: Charlie's watching it on TV (Television). Commissioner Gort: My question is the increase from last year is because the actuarial funding requirement. Am I correct? Ms. Ellenberg: Yes. Chair Sarnoff Let me ask her a very basic question. Who is covered by the Excess Benefit Plan? You said there were 25 employees. Ms. Ellenberg: Right. At City -- do you want a list of their names? Chair Sarnoff No, no, no. Category. Mr. Silver: What qualifies them to be? Chair Sarnoff Thank you. Ms. Ellenberg: Okay. If -- depending on the age that they retired and how much they're receiving, if they're over a certain limit, then they go into the Excess Benefit Plan. Mr. Silver: IffI may, I think this was done -- maybe Mr. Thompkins (phonetic) can help me out here. But that was because of an IRS (Internal Revenue Service) ruling at the time; was 450 or whatever it was that said that they couldn't receive more dollars than a certain amount, so that's why we had to adopt this Excess Benefit Plan at Section 415. Can you explain to the Chairman what -- why we did this? Jose Fernandez: The Internal Revenue Code -- Mr. Silver: Got to state your name and address. Mr. Fernandez: Jose Fernandez, from Cavanaugh Macdonald, the actuary for the GESE Retirement Trust. The Internal Revenue Code, Section 415, has a maximum benefit limit which is applied to all qualified pension plans, and that limit depends on the age at retirement of the members of the plan. So in the case of the GESE plan, there are some members who are entitled to receive benefits based on the 3 percent multiplier and service and final average pay, which is in excess of that limit. That's why it's called an Excess Benefit Plan. So the benefit that's in excess over that limit that the Internal Revenue Code provides, that excess benefit is paid through this plan. Chair Sarnoff Okay. Let me ask the City Manager that question. Sometimes he answers them a little easier for my rudimentary mind. What is the excess plan? What's the purpose of it, in your words, not -- your understanding of it? Carlos A. Migoya (City Manager): I really can't answer that. I would have to get one of our professionals to do it. Mr. Fernandez: Can I try again? Chair Sarnoff Sure. Mr. Fernandez: Okay. Let's say 3 percent times 30 years of service times $150,000 pay. That gives me a certain benefit amount, right? City of Miami Page 169 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff Right. Mr. Fernandez: That's what the member earned. Chair Sarnoff Right. Mr. Fernandez: And let's say that ends up being $130,000, so that's what I owe the member. The Internal Revenue Code tells me I can only pay that member $100,000, okay, 'cause there's a cap -- the Internal Revenue Code has a cap on the maximum benefit I can pay from a qualified plan. So the plan formula tells me I owe the member 130, 000. The Internal Revenue Code says I have to cap it at 100. The difference, the excess between 130 and 100 is paid from this excess plan. A 100,000 is paid from GESE Retirement Trust, 30,000 is paid from the excess plan. In total, the member gets the total benefit he earned. Chair Sarnoff. This is news to me. Has anybody heard this one before? Okay, so -- I thought I spent a lot of Saturdays with the Manager. Now this is now a late night that I don't quite understand. So you're saying the IRS has a reg (regulation) or a rule that caps out a person's --? Mr. Fernandez: Maximum benefit -- maximum annual benefit payable from a qualified retirement plan. Chair Sarnoff. And does that apply to safety officers as well? Mr. Fernandez: It is, but except the rules are different for public safety. The -- for public safety, generally the maximum under -- for nonpublic safety, the maximum benefit gets reduced from Social Security to normal retirement age down to the age the member actually retires. So the younger the member, the lower the maximum benefit allowed. For public safety, there is no reduction in that benefit. So if the maximum at full retirement age, Social Security retirement age is $195,000 a year, that's the maximum at every age. For nonpublic safety, that $195,000 is reduced depending on the member's age at retirement. So at age 50, for example, it could be $70,000. So that's where it applies because you might have members retiring under Rule of 70 who might be over that -- Chair Sarnoff. What is the IRS reg 'cause I want to look this up? Mr. Fernandez: It's an Internal Revenue Code, Section 415. Chair Sarnoff. 415. There's no subsection, sub --? Mr. Fernandez: If you go to Internal Revenue Code, Section 415, and then there are regulations, IRS regulations that deal with that, but -- and I'm sure Mike Tierney can help you with that also. Chair Sarnoff. And -- Commissioner Suarez: Mr. Chairman, can I ask him a question? Chair Sarnoff Please. Commissioner Suarez: Is that a limitation that the IRS places on what can be paid by the employer or is that --? I mean, 'cause that doesn't sound right to me. Mr. Fernandez: No. Commissioner Suarez: Or is that a limitation on what wouldn't be taxed or something like that? City of Miami Page 170 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mr. Fernandez: Yeah. The -- it really was a rule put in place to apply to private sector plans. It -- you know, really, it has no place in public sector. The reason it was put in private sector plan is because if -- in the example I gave, for example, if the maximum benefit payable under the rule is 100, 000, then the employer, the private company paying for that benefit, can only fund the benefit up to $100,000 and get a tax deduction only for the amount that they're funding up to 100, 000. Commissioner Suarez: So the for profit corporation would get a tax benefit --? Mr. Fernandez: Only up to the 100, 000, so the -- Commissioner Suarez: That's why the IRS gets involved. Mr. Fernandez: Right. Commissioner Suarez: 'Cause that's where I think it was confusing to me. I don't know. Mr. Fernandez: In the public sector, it doesn't matter because the City ofMiami doesn't -- does not receive a tax deduction, whether the benefit is 100 or 130. So it's a -- but since -- Commissioner Suarez: But why is there -- why is this excess benefit --? Mr. Fernandez: Because the Internal Revenue Code applies it to all qualified plans, regardless of whether you're governmental, for -profit. And a few years ago, Internal Revenue Code, Section 415(m), I believe, said it was okay to set up one of these excess plans for governmental retirement plans. And this plan has been in place for several years now. I'm not sure exactly how many years, but it has been in place. And it's only, as Sandra mentioned, a hand -- well, 25 retirees for 2010 because not many of the retirees are affected by -- have benefits -- have earned benefits in excess of the limits, but -- Chair Sarnoff Twenty five have. Mr. Fernandez: Yes. Chair Sarnoff So -- I don't mean to -- you done? So the IRS only allows a private employer to pay up to $100,000 for non -safety per -- well, there are no such thing as safety, so let me say it right. The IRS only allows a for -profit corporation, which is about I guess 80 percent of America, to pay up to $100, 000 for an employee to get a tax bene -- and get a tax benefit to their Mr. Fernandez: That's correct. And that's really the reason why it was put in there, to limit the tax deduction that those corporations would get. Chair Sarnoff Also to limit benefits -- Mr. Fernandez: Well, what -- Chair Sarnoff -- because that would be -- Mr. Fernandez: -- corporations then do is they establish an excess plan, okay. So then out-of-pocket, outside the retirement trust, they will pay. Many do. Not all do. Commissioner Suarez: They just don't get a tax benefit the excess -- Mr. Silver: That's exactly right. City ofMiami Page 171 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Suarez: -- portion. Mr. Fernandez: And for many years there's been a -- Chair Sarnofff. Never seen a corporation do anything without a tax benefit. Mr. Fernandez: -- lobbying effort in Congress to have this Internal Revenue Code section not apply to governmentals because the tax reason is -- exactly. Chair Sarnofff. Okay. All right. Mr. Fernandez: Yeah. Chair Sarnofff. We -- Mr. Fernandez: I was being told that the -- what I gave was just an example with the 130,000 and the 100, 000. I was just giving an example to illustrate -- Chair Sarnofff. I'm not taking it as gospel on any of your employees. All I know is they're over $100,000. That's all I know. I don't know how much they're over. Mr. Fernandez: Right. Well, there is a table we provide every year that -- Chair Sarnofff. That's okay. Mr. Fernandez: -- you know, depends on the retirees' age, what they -- the maximum benefit payable is. Chair Sarnofff. Right now you do not have a motion to approve. Right now there is no one that's moving to that, correct? So without a motion, there's no action taken. I would suggest that this come back to the Board -- sorry, to our Commission on the 27th. Can that be done by direction or does that need a motion? Ms. Thompson: With no action being taken and it is a resolution, it will automatically roll over to your next like meeting. Chair Sarnofff. Okay. See you then. Mr. Fernandez: Thank you. BH.13 RESOLUTION 10-00944 Virginia Key Beach A RESOLUTION OF THE MIAMI CITY COMMISSION REQUESTING THE Park Trust APPROPRIATION OF THE AMOUNT OF $106,307 TO THE VIRGINIA KEY BEACH PARK TRUST'S FISCAL YEAR 2009-2010 FUND BALANCE . 10-00944 SUMMARY FORM.pdf 10-00944 PROJECTED REVENUE FY 10.pdf 10-00944 LEGISLATION. pdf 10-00944 Legislation 9-27-10.pdf Motion by Commissioner Dunn II, seconded by Commissioner Suarez, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II City of Miami Page 172 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 scheduled for September 27, 2010. Direction by Vice Chair Carollo to the Director of Operations for Virginia Key Beach Park Trust, to contact his office to discuss this item before the Second Budget Hearing scheduled for September 27, 2010. Chair Sarnofff. You know what, let's do BH.13. I don't think that's a tough one. Is everybody okay with BH (Budget Hearing) --? Let's do BH.13. Vice Chair Carollo: I have questions. Chair Sarnofff. I have questions, and we have answers. All right, BH.13. Guy Forchion: Good evening, Mr. Chairman, Commissioners. Guy Forchion, executive director of the Virginia Key Beach Park Trust. This is a resolution requesting that this body appropriate $106,307 to the Virginia Key Beach Park Trust to this current fiscal year fund balance. These are dollars that are carryover funds that were held in reserve and as a result of a meeting convened by yourself, Mr. Chairman, back in July and other discussions and some that I've had with the City Manager, this releases trust funds that are currently held in the City ofMiami accounts. These are the final carryover dollars of the Virginia Key Beach Park Trust. And I ask for your support and to move this item forward. Chair Sarnofff. All right. Let me open up a public hearing on BH.13. Is there anyone from the general public wishing to be heard on BH.13? Hearing none, seeing none, coming back to this Commission. Is there a motion? Commissioner Dunn: Mr. Chairman. Chair Sarnofff. You're recognized. Commissioner Dunn: I'd like to make a motion with discussion. Chair Sarnofff. A motion by Commissioner Dunn. Is there a second? Commissioner Gort: Second for discussion. Chair Sarnofff. Second by Commissioner Gort. Who would like to be recognized first? Commissioner Dunn: Yes, I will. Chair Sarnofff. Commissioner Dunn. Commissioner Dunn: Now, to Mr. Forchion, these dollars now that you're referring to are pretty much inconsequential. It has nothing to do with the budget 2010/2011. Am I correct? Mr. Forchion: Correct. And again, these are dollars that were not captured during this recent fiscal year. These do not impact the upcoming budget. Commissioner Dunn: Now, back during the early August, if you could, because all of our colleagues were not present, kind of reiterate what, in a nutshell, was the basis for the delay? I think there was a great deal of discussion about that. Just kind of in a nutshell. I think that would be helpful for all of us. Mr. Forchion: And I'll move through this as simply as possible and then, possibly, if some of the Administration staff can chime in where I may be incorrect, I would appreciate that. But this City ofMiami Page 173 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 goes back to the '08/'09 budget process where when the Trust moved into this current fiscal year, these dollars were not captured and approved when our budget was approved. And there were delays -- for those of you that were on this Commission and those that were not, there were delays in the approval of the Trust budget. It did not take place October 1. It was suspended actually until January before our budget was loaded. And when it was, these dollars were not captured in that number. Commissioner Dunn: So now some of the issues that we -- you're -- Virginia Key Trust was confronted with, you said to some extent at the last -- in the August meeting, some of it was misrepresented in terms of you like not being responsible and that kind of thing. Could you reiterate that? Mr. Forchion: That -- I'm not sure that I know exactly which item you're talking about relative to this budget number or they -- we did have an issue that dealt with auditing. Commissioner Dunn: That's what I'm trying to -- Mr. Forchion: Now the audit again did not have any influence on these dollars being approved for use. Again, the Trust received no contribution from the City in the past year, but we do use the City's fiscal system, purchasing and whatnot. And so when we present a budget, our dollars need to be approved so that they can be used. These dollars were held in the account but were not approved for usage. If you remember in the August meeting, we came forward for the approval and use and loading of $166, 000, which were revenues collected by the Trust. Again, it goes into City coffers, City accounts, but we still need approvals to actually touch the dollars. These are dollars that carried over from a year earlier. Commissioner Dunn: Last question. So technically, these are dollars that are generated by the Virginia Key Beach Park Trust? Mr. Forchion: These dollars really are carryover dollars from the '08/'09 carryover revenue. These are not like the revenue dollars that were approved in August. Commissioner Dunn: Okay. Chair Sarnoff All right. Any other Commissioners? Commissioner -- I'm sorry. Vice Chair. Vice Chair Carollo: Thank you, Mr. Chairman. I have a few questions, and I'm not going to rehash the audit and so forth. I think we all know that I was quite concerned, quite disappointed and so on as far as the audit not being given to the City's auditors on time. The bottom line is -- ands spoke to, you know, Mr. Tinnie about this. You know, I'm not going to get into why or not. The bottom line is the City ofMiami auditors had a finding that was not rebutted by the City. They accepted that finding. And it is what it is. Now moving forward, I want to make sure that, you know, the audit is presented on time so we don't have that issue again. So I'm not going to rehash the audit issue. Now with that said, as far as these allocation, I looked at this a little bit, and what I'm seeing is that you had an ending balance or loaded a beginning balance for the 2010 year of $324,000, correct? Mr. Forchion: Correct. Vice Chair Carollo: Approximately. Mr. Forchion: Correct. Vice Chair Carollo: It seems to me at the end of the year when the auditors actually audited your books, they found hey, you really don't have 324,000; you have 539, 000. So you actually City ofMiami Page 174 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 have an additional 215, 000. Mr. Forchion: Well, we had an additional $106,000. When -- Vice Chair Carollo: Now -- and sorry to cut you off -- the 106 is reducing it by a 109, and that's something that I asked our CFO (Chief Financial Officer), Larry Springs [sic], about either yesterday or the day before, what makes up that 109? What is it and so forth? I know you were supposed to get back to me, but I know we've all been busy, andl guess you didn't have a chance. But what is that 109? Larry Spring (Chief Financial Officer): Mr. Chair. Larry Spring, chieffinancial officer. What that is is when you looked at their fund balance rollover from the last year and we had a shortage, included in what was loaded in their budget last year was an expectation of a receipt of revenue of $109,000. That revenue has not been received, so the 109 was taken out of the 215 in order for them not to overspend going forward, until that revenue was actually received. Vice Chair Carollo: So it's actually revenue that was --? Mr. Spring: Expected but not received. Vice Chair Carollo: But not received. Mr. Spring: Right. Vice Chair Carollo: So that's what makes up their 106? Mr. Spring: Correct. Vice Chair Carollo: And what you're asking is in order to appropriate the remainder, which is 106? Mr. Spring: Which is received. It is collected. Vice Chair Carollo: Which is received. Now my question is do you have a budget for this $106,000? Mr. Forchion: We do. And we presented a budget that includes the 106 and our expectations for next year of 285, 000 in projected revenues. Vice Chair Carollo: Now it's not part of the package for this. Mr. Forchion: Correct. And we were instructed by Finance that this needs to be placed as a resolution so that it is part of this budget, this current budget so that it can be rolled over as part of our future budget. Vice Chair Carollo: Well, hold on. But we're appropriating now for you to expend $106, 000. I want to know what, you know, budget or -- do you have a budget, how are you going to spend it, these amounts or --? Mr. Forchion: These dollars would be spent in the next fiscal year, not this year. Commissioner Gort: Yeah, but it's -- Vice Chair Carollo: Now you lost me, 'cause it appear to me like -- it appeared to me that -- City of Miami Page 175 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Mirtha Dziedzic (Interim Director, Strategic Planning, Budgeting & Performance): My -- Mirtha Dziedzic, Budget Department -- understanding is that these funds are being allocated for expenditures in the fiscal year '10 budget process. Vice Chair Carollo: Now -- Ms. Dziedzic: There is another resolution coming -- Vice Chair Carollo: Right. Ms. Dziedzic: -- before us. I don't know if it's the 23rd or the 27th -- Mr. Spring: Second meeting. Ms. Dziedzic: -- where they will be appropriating their expected revenue and any remaining fund balances for fiscal year '11. So this is for fiscal year '10. Vice Chair Carollo: Right. But again, the only thing I'm asking is this $106, 000 for this fiscal year, how is it going to be spent? Mr. Forchion: It will not be spent this fiscal year. It will rollover to next and be used with our projected revenues. Vice Chair Carollo: So what you're saying is that you have enough money, I guess generated from revenues and so forth, to operate for this fiscal year; and this money would just be carried over to the next fiscal year? Mr. Forchion: Correct. Commissioner Gort: Wait a minute. Vice Chair Carollo: Okay. I mean, I guess I don't have any assurances of that, but okay, if you say that. Commissioner Gort: No. I'm lost now. Chair Sarnoff I'm a little bit lost too. Commissioner Gort: No. Wait a minute. This fiscal year will be over in two weeks. Chair Sarnoff Right. Mr. Forchion: Correct. Commissioner Gort: So you're going to spend 106 -- no. That's going to go -- Mr. Forchion: No, we are not, Commissioner. Commissioner Gort: -- to the next year. Vice Chair Carollo: He's going to carry it over to next year. Commissioner Gort: Carry it over to next year. Chair Sarnoff What -- I don't mean to interrupt you, but what have you spent in the past City of Miami Page 176 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 month? What have you spent money on? Mr. Forchion: Essentially -- and again, we've had purchase orders in place to handle our lease and staffing costs, some operational costs because, again, we provide the operational staff for all of the historic elements on the property, entry toll, our mini train, our carousel, and then we work together with City staff on cleaning up the park during the season. September 30 -- we're very seasonally operated at this point now. In September 30 we have a couple of staff who will no longer be on board. Chair Sarnofff. So -- Mr. Forchion: Again, this -- and maybe I can make this clear to you -- $106,000 was never part of our fiscal budget for this year. And so with the layoffs that had to take place at the Trust, we operated without these dollars. In order for them to rollover, I've been instructed by Administration that it must be added to this year's budget to be part of our fiscal makeup in order to rollover; otherwise, it is uncaptured [sic]. And if there's someone from Administration who can maybe better explain that to you, that is as it was put to us. Commissioner Suarez: Mr. Chairman. Chair Sarnofff. Let me -- yeah. Commissioner Gort: What -- Chair Sarnofff. Let me just -- Commissioner Gort: -- just --? Yeah, go ahead. Chair Sarnofff. -- ask one more qu -- What was your $109,000 bad debt? Who owes you that money? Mr. Forchion: That was a budget projection between events, rentals, and entryway collections. That's revenues coming into the Trust. Chair Sarnofff. But it -- Mr. Forchion: And we exceeded that. Chair Sarnofff. Whoa. Then now I'm lost because -- I need Larry. Ms. Dziedzic: That revenue was not recognized. They had other revenues that was just recently received by the Trust to the -- Chair Sarnofff. All right. Ms. Dziedzic: -- tune of about fifty thou -- Chair Sarnofff. I'm going to do this a little bit like the Vice Chair would do it. Hundred and nine thousand dollars was supposed to come in as projection, real money, a bill? Ms. Dziedzic: That was an estimate by the Trust -- Chair Sarnofff. Of what? Ms. Dziedzic: -- at the beginning of last fiscal year for -- City of Miami Page 177 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff. An estimate of what? Ms. Dziedzic: Of revenues for -- Mr. Forchion: Revenues. Chair Sarnoff. Okay. That did not realize? Ms. Dziedzic: Were not realized. Chair Sarnoff. And so now we're being asked to roll this over to the '011 [sic] budget and they're giving us what they project to be new revenues to include in that. Yet, we know -- let me finish -- they have made $109, 000 mistake this past year. Ms. Dziedzic: Correct. What is being appropriated now is the difference in the fund balance that was allocated for the current fiscal year. The current fiscal year fund balance allocation was a portion of what was available. We did not have those final numbers until the CAFR (Comprehensive Annual Financial Report), until the audit was completed. So this is the difference that was -- that's the difference that was not allocated at that time. Chair Sarnoff. Wait. How could you miss that? Ms. Dziedzic: Well, no. We don't know what those final numbers are until the CAFR comes in because there may be expenditures that aren't recorded or adjusting entries that are -- Chair Sarnoff. Wait, wait, wait, wait. You don't depend upon the CAFR to get an actual spending on any -- I know you don't. You can't operate that way as a city. There's no way. And if we do, we should hand the keys to somebody. Ms. Dziedzic: When the fiscal year closes on September 30, we don't have the final audited figures. Chair Sarnoff. I know you don't have the final audited figures, but you're going to be within 2 to 3 percent. Mr. Spring: Let me clam this. When we -- whenever we close the year, you appropriate a budget for the next year. Any of the agencies' special revenue funds that have an estimated fund balance, we typically do not allow them to appropriate the hundred percent of what we think they have until after the audited financial statement is done. You usually do 50 percent, 60 percent of that number until we get the final audited number. Then we come back to the City Commission and appropriate the remaining balance. That has happened before this Commission a number of times that I'm sure you recall. Chair Sarnoff. I think I recall your -- Mr. Spring: So this is a similar situation. The only difference is in their new budget appropriation there was an estimate -- an additional estimate of more revenue to be collected and received. It did not come in. So what we're saying is we're not going to give that -- we're not coming to you to appropriate more fund balance. We're shorting what we're asking you to appropriate for '10 by that number. Chair Sarnoff. But -- Mr. Spring: What I want to recommend is that perhaps, so that you can see the expenses that City of Miami Page 178 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 they're going to have associated with this revenue, that they defer this item until they bring their FY (Fiscal Year) '11 budget appropriation, which is scheduled for the 27th. Commissioner Suarez: Mr. Chairman, ifI may? Chair Sarnoff Yeah. Please, Commissioner. Commissioner Suarez: I think I'm starting to understand this, believe it or not. I think. Commissioner Gort: Good. Commissioner Suarez: I think. You have a budget for fiscal year 2011. It's going to start on October 1, okay. It estimates that you have monies being generated throughout the year and you're going to have expenses. But you're putting -- by putting this in -- by "loading this," you're putting cash in the bank, in essence. Mr. Spring: Correct. Commissioner Suarez: So you're saying even though you have this budget, you may not on October I have any money coming in. So -- whereas before, last year we had the problem that there was no actual cash to pay the audit -- Mr. Spring: Right. Commissioner Suarez: -- which is the reason why you guys specin, that the audit wasn't done. What you're saying here is even though they have a budget for money, it's not like for us with our tax revenues that are -- Mr. Spring: We know that it's coming in. Commissioner Suarez: -- money starts to come in in November -- Mr. Spring: Right. Commissioner Suarez: -- Oct -- you know -- Mr. Spring: Right, right. Exactly. Commissioner Suarez: -- November, December. We have to load cash into the account. Mr. Spring: You do that on every single budget. Commissioner Suarez: And then we can back it up -- Mr. Spring: Right. Commissioner Suarez: -- on the other side. Mr. Spring: If we see that -- Commissioner Suarez: I think I kind of understand it now. Mr. Spring: -- it's not going to come in, we'll make an adjustment in order to prevent a department from overspending, so -- City of Miami Page 179 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Commissioner Gort: We're lending him 106, 000. Commissioner Suarez: Sorry? Mr. Spring: -- again, I think -- Commissioner Gort: We're lending him 106, 000. Commissioner Suarez: It's like a credit line. Commissioner Gort: Yeah. Commissioner Suarez: Is what it is. That's what it amounts to be. Mr. Spring: The 106 is not a credit line. That's actually received revenue. It's the 109 -- Commissioner Suarez: I know. Mr. Spring: -- that is -- Commissioner Suarez: But you're saying it's done this way for cash flow purposes. Mr. Spring: Right. Correct. So -- Commissioner Suarez: It's done this way for cash -- so they're going to -- this money's going to come out of their budget when we approve their budget. Mr. Spring: Correct. It's going to be included. Mr. Forchion: Be included. Mr. Spring: It'll be included in the appropriation for fiscal year 2011, so -- Commissioner Suarez: I think we should bring it back at the same time. Mr. Spring: Right, right. Exactly. Commissioner Suarez: I think we should -- Mr. Spring: So whatl would say is if that's the case, so that you can see the expenditure side, that we bring this appropriation for FY '10 back with the fiscal year '11 so you can see the detail on the expenditure side. Chair Sarnoff. All right. So you want to bring this back? Commissioner Gort: Yes. They have to. Chair Sarnoff. All right. So is there a motion to bring this back for the September --? Commissioner Dunn: Mr. Chairman, I move to -- Commissioner Gort: Second. Commissioner Dunn: -- bring it back. City of Miami Page 180 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 Chair Sarnoff Well, I want to get the date. What's the date? Vice Chair Carollo: What's the date? Chair Sarnoff Madam Clerk. Ms. Thompson: If it's the second budget hearing -- Chair Sarnoff Yes, ma'am. Ms. Thompson: -- it will be September 27. Chair Sarnoff All right, September 27. That's your motion, correct? Commissioner Dunn: Yes, sir. Chair Sarnoff All right, we have a motion by Commissioner Dunn. Commissioner Gort: Second. Vice Chair Carollo: Second. Chair Sarnoff Second by Commissioner Suarez. Any discussion, gentlemen? Being no -- Vice Chair Carollo: Mr. Chairman, the only discussion is, you know, Mr. Forchion, before the 27th, you know, contact my office. Let's get together and, you know, see if we get this straightened out, okay? Mr. Forchion: Okay. Vice Chair Carollo: I mean, I understand. I actually understand what's happening. I understand the -- but the bottom line is, you know, contact my office. Let's see if we can get this straightened out, okay? Mr. Forchion: I will. I'll contact each of you. This is a unique situation for the Trust also because we've never been in a situation where whatever rolled over we didn't actually have the dollars to move into cash in the next year. So I will be in touch with all of you. Thank you. Commissioner Suarez: Thank you. Chair Sarnoff Thank you. Do we go -- did we do the motion? Did we get a --? All in favor, please say iiye. " The Commission (Collectively): Aye. Vice Chair Carollo: And that's deferred to the 27th, correct? Chair Sarnoff Correct. Commissioner Dunn: That's correct. Chair Sarnoff All right. Now -- Commissioner Gort: You have FIFO (Firefighters and Police Officers) and the -- City of Miami Page 181 Printed on 10/8/2010 City Commission Meeting Minutes September 14, 2010 ADJOURNMENT Chair Sarnoff We got BH.10, BH.11, and BH.12. Anybody want to take in any particular order? Vice Chair Carollo: No, but -- Chair Sarnoff Did you want to take a break? You want to take a bathroom break? Vice Chair Carollo: Yeah. Chair Sarnoff Let's take a five-minute recess. A motion was made by Commissioner Suarez, seconded by Commissioner Carollo, and was passed unanimously, to adjourn the First Budget Hearing. City of Miami Page 182 Printed on 10/8/2010