Loading...
HomeMy WebLinkAboutCC 2010-09-27 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Monday, September 27, 2010 5:05 PM SECOND BUDGET HEARING City Hall Commission Chambers City Commission Tomas Regalado, Mayor Marc David Sarnoff, Chairman Frank Carollo, Vice -Chairman Wifredo (Willy) Gort, Commissioner District One Francis Suarez, Commissioner District Four Richard P. Dunn 11, Commissioner District Five Carlos A. Migoya, City Manager Julie O. Bru, City Attorney Priscilla A. Thompson, City Clerk City Commission Meeting Minutes September 27, 2010 CONTENTS BH - SECOND BUDGET HEARING TO DISCUSS FISCAL YEAR 2010-2011 TENTATIVE BUDGET BEGINNING AT 5:05 P.M. BH.1 THROUGH BH.17 SECOND 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 27th 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 second budget hearing session. The meeting was called to order by Chair Sarnoff at 7:16 p.m., recessed at 11:29 p.m., reconvened at 12: 07 a.m., recessed at 1: 08 a.m., reconvened at 1:45 a.m., and adjourned on Tuesday, September 28th, 2010 at 2: 27 a.m. Note for the record: Commissioner Dunn entered the chambers at 7:17 p.m., and Commissioner Carollo entered the chambers at 7: 25 p.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 Sarnofff. Do we need to open up a meeting, Madam Clerk? Priscilla A. Thompson (City Clerk): Yes, we do. I don't know if you want to go through an order of the day, but I'd like your permission to make an announcement once you finish that. Chair Sarnofff. All right. Would you -- I don't have anything to read in, so you want to maybe guide me a little bit? Ms. Thompson: Okay. Before we start, ifI can make one announcement? Chair Sarnofff. Go ahead, I know the announcement you want to make. Ms. Thompson: Ladies and gentlemen, we're trying to find out if anyone in the audience would need to have a Spanish or Creole interpreter for the budget hearing this evening, and we'll make the announcement in those languages. Note for the Record: The City Clerk's comments were translated by Spanish interpreter Paul Seligman and Creole interpreter Carol Wilson. Ms. Thompson: Okay, Chair. Chair Sarnofff. Yes, ma'am. City ofMiami Page 2 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.1 10-00932 Office of Strategic Planning, Budgeting, and Performance Ms. Thompson: We've gotten that cleared up. We finished with the interpreters. Chair Sarnoff All right, so we can release the interpreters? Ms. Thompson: Yes. Chair Sarnoff Correct? Ms. Thompson: That's correct. Now it is my understanding -- and our City Attorney can help us out -- I think the order of business is listed right there in the agenda. Chair Sarnoff Okay. Ms. Thompson: Is that correct, Ms. Bru? Julie O. Bru (City Attorney): I'm sorry, Madam Clerk, what did you say? Ms. Thompson: If I'm not mistaken, the order of business is listed in the agenda as printed. Ms. Bru: Yes, it is. Now the Chairman may want to modin, that based on what we know will be developing but -- Chair Sarnoff Right. Ms. Thompson: Thank you. Chair Sarnoff All right. Let me welcome everybody to the September 27, 2010 second budget hearing of the City ofMiami. Most of you have been here before, so I'm not going to read to you who's been on the dais. For purposes of our hearing today, we're going to go through what is known as the BHs, the budget hearings. We're going to take up all the budget hearing items, open the public record up, so if you want to speak on any item, feel free to do so. We will vote on each item individually, but if you want to speak on any item, you know, if it's BH.1 or if it's BH.6, feel free to speak on it, and we will commence that way. DISCUSSION ITEM FINAL 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 ADOPTED TENTATIVE BUDGET, IF NECESSARY 2. RECOMPUTE THE FINAL MILLAGE RATE, IF NECESSARY 3. ADOPT THE FINAL MILLAGE RATE 4. ADOPT THE FINAL BUDGET OR AMENDED FINAL BUDGET AS NECESSARY City ofMiami Page 3 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 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 So why don't we commence the meeting, Mr. Manager, if you would, with BH.1. Carlos A. Migoya (City Manager): Yes, sir, we will. IfI may ask, though, can we use the same methodology that we did last week -- Chair Sarnoff I thought that's -- Mr. Migoya: -- and leave the City budget to the end after the agencies? Chair Sarnoff That's what I'm going to do; I'm going to delay BH.3 -- Mr. Migoya: Right. Chair Sarnoff -- and we'll come back to BH.3 last for a vote. But I'm -- what I'm saying is anyone wishing to speak on any item, let them speak on any item they wish. Mr. Migoya: That works for me. Chair Sarnoff So let's open up BH.1, if we can. Julie O. Bru (City Attorney): Well, I suggest that the Budget director put the statement on the record about the rate. Mirtha Dziedzic (Interim Director, Strategic Planning, Budgeting & Performance): Mirtha Dziedzic, Budget Department. This is the final public hearing to discuss the proposed millage rate and tentative budget for fiscal year 2010-2011. The proposed general operating millage rate of 7.6740 for the City ofMiami for the fiscal year beginning October 1, 2010 and ending September 30, 2011 is 11.95 percent lower than the rollback rate of 8.7154. The City Commission listens and responds to citizens' comments regarding the proposed millage rate; and then the actions by the City Commission are to amend the adopted tentative budget, if necessary, recompute the final millage rate, if necessary, adopt the final millage rate, and adopt the final budget or the amended final budget as necessary. Commissioners, since the first budget hearing on the 14th, certain assumptions have been modified on the changes to the proposed fees and the fiscal strategies. As a recap, the proposed fiscal year 2011 budget is structurally balanced, maintains the millage rate at the current year's level, sustains overall service levels, and reinstitutes funding for capital needs. The total recommended revenue appropriations for fiscal year 2011 is $499 million. This is a reduction of approximately $668, 000 from the originally proposed budget. The changes are in the areas of licenses and permits and charges for services. Charges for services were affected by the reduction to the proposed solid waste fee from the original increase of $30 per residential unit to a preliminarily approved $15 per residential unit. This change translates into a reduction of revenue of $1 million. In the category of licenses and permits, the anticipated increase to building permits was reduced by 150,000 due to the elimination of the single-family and duplex units from the proposed rate change. Conversely, an increase of $500, 000 was added in anticipation of the revenue to be generated from the City ofMiami Page 4 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 coin -operated machines. The total recommended expenditure appropriations for fiscal year 2011 is $499 million. This is a decrease of approximately 668, 000 from the originally proposed fiscal year '11 budget. We achieved the necessary reductions in expenditures by reducing the allocations to the City Manager's office, Employee Relations Department, and GSA (General Services Administration). Additionally, increases were provided to the Law Department for the transfer of the labor functions from the ER (Employee Relations) Department and the Department of Planning and NDA (NondepartmentalAccounts). As a note, a contribution of $100, 000 for the Gusman Center was added back to NDA, for a total expenditure reduction of $297, 000. To reach the total of $668, 000, transfers out were adjusted as follows. Reductions were made to the allocations for the Solid Waste capital and the contribution to Community Development for the final installment of the HUD (Housing and Urban Development) repayment plan. With this we were able to add back allocations for police vehicles -- additional allocations for police vehicles, citywide building maintenance, and fire apparatus. The total transfer out changes was a reduction of $370, 000. In summary, the proposed budget addresses the City's fiscal constraints and priorities without a tax increase and it affirms the City's commitment to maintain the current service levels. We continue to focus our attention on improving business processes to reduce redundancies and increase efficiencies. And this concludes the fiscal year '11 budget presentation. Chair Sarnoff All right. Commissioners have any questions on BH.1 ? Is there anyone from the general public wishing to be heard with regard to BH.1, please step up. Mr. Cruz, you're recognized for the record. Mariano Cruz: Sure. Mariano Cruz, 1227 Northwest 26th Street. Even ifI am not a taxpayer in a way because I get the deductions, you know, Save Florida [sic] Homes -- I got a hundred and some thousand dollars on deduction and only fifty -some thousand assessed value, butt still pay taxes because I pay the storm sewer. I pay the 1 percent sales tax that goes to the City. What -- I -- the other day I mentioned a good thing. I forgot to mention the lawyers from the Law Department. They (UNINTELLIGIBLE) -- Barnaby, Vicky, (UNINTET,TIGIBT,F). Good workers there. I been -- I know we've been getting our money worth on the Law Department. But what I worry is service like 19 Terrace in Allapattah. It's like a wash board. I complain to the Miami Water and Sewer and tell me no. That's the City problem. It's a (UNINTET,TIGIBT,F). You want it from here, from here. I complain to like the Public Works, 14 Avenue, in front of Commissioner Gort's, flooded. It's flood at all times. And you go to 15 Avenue and 31 and 32 Street, it's flood. That doesn't happen -- I don't see that in Coconut Grove or other places, on Upper East Side. I see it in Allapattah in front of your house, 266014 Avenue, flooding. The other day, you got to get out your house in a boat, I bet. Commissioner Gort: I went fishing. Mr. Cruz: You -- Commissioner Gort: Right across the street from my house. Mr. Cruz: I know. And that's you -- that -- the Commission. What happened to (UNINTELLIGIBLE) there that don't know anybody (UNINTELLIGIBLE)? And that's what worry about, the way the monies are spent. Another thing that bothers me, the Code Enforcement 'cause they asked the other day from Community Development $400, 000. And you know what the inspectors do? They come and they give a ticket to somebody that drop a sofa in front of my house or anything. Do they penalize Burger King because I get Burger King wrappers in front of my house? No. Not only that, what they do -- Chair Sarnoff And in conclusion. Mr. Cruz: -- does -- City ofMiami Page 5 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff In conclusion. Mr. Cruz: The Code Enforcement Board -- Chair Sarnoff In conclusion. Mr. Cruz: In conclusion, yeah. The mitigation board -- I got afriend of mine that spend a lot of money fixing. They come here -- because he's a poor guy, a working guy, he don't get mitigate. Somebody come with a -- Chair Sarnoff Thank you. Mr. Cruz: -- big lawyer and he get mitigated. Chair Sarnoff Thank you. Mr. Cruz: And that's all. So you know what I told my friend, Chapter 13. Chair Sarnoff Thank you. Mr. Cruz: That way you won't have to pay nothing. Chair Sarnoff Thank you. Anyone else wishing to be heard, please step up. You're recognized for the record. Albio Castillo: It shouldn't take me that long, what have to say. I do a pretty good job of it. My name is Albio Castillo. I live at 2345 Southwest 16th Street, Apartment 3. Referring to what the other gentleman says, you know that Code Enforcement, the board doing a terrific job, but the City never has bothered to correct [sic] all that money that is available right now since you're going broke, to a degree? I also like to know, as my Commissioner, with the Baker Acts [sic] that I have between -- and the residents are complaining and commercial people are complaining about -- between Southwest 16th Street and 22ndAvenue, all the way up to 10th. That is a Baker Act. And the Commissioner (UNINTELLIGIBLE) trying to do the best I can, and I'd like to know is the City going to do something about that? And for -- and you know, changing the code or enforcing when we do these Baker Act houses in the neighborhoods, 'cause they do panhandle andl have seen them in my neighborhood. I also like to know is if the City going to collect the -- all the money that's available in the City properties that we have, like Monkey Jungle and others. How is the City collecting those money from those things? Any questions from the Administration? Any questions from the Commission? Chair Sarnoff I don't know that there are, but I thank you for your thoughts. Mr. Castillo: Thank you. Chair Sarnoff Yes, sir. Applause. Angel Urquiola: You know my name. Angel Urquiola. I live in 25 Southwest 30 Avenue. The only -- I want -- I have a question for the Commission and the Mayor. What happen when somebody make a building, they put a bond, a special bond where they wreck the street, everything, they have to pay for it. What happen -- I know a lot of places they build it up and they don't fix the street. They break -- they cut (UNINTET,T IGIBT ,F) the way and they never fix it. It's possible we can get this bond to fix it up the street? I think this bond is in deposit in the City ofMiami Page 6 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 City ofMiami. It's possible, there is -- and (UNINTELLIGIBLE) live in 11 Street and 32 or 33 Avenue, somebody building over there. They wreck all the street and they don't want to fix it. I thinking we can (UNINTET,T IGIBT ,F) the bond to fix the street. We don't have to use the City money. Including where I live, 37 Avenue, Southwest 1st Street, they break the street with the big truck and everything and they don't fix (UNINTELLIGIBLE). What happened with this money? So one of you can give me some information where I have to go to see what happened with that bonds? Nobody can give this information? And you, Mr. Mayor, Mr. Manager, please. I'm sorry. I needed to know where is this bond. Chair Sarnoff. We can get back to you on it. Before the end of this meeting today, we will have an answer for you. Mr. Urquiola: Oh, okay. Thankyou very much. Chair Sarnoff. Thank you -- Mr. Urquiola: You are very nice. Chair Sarnoff. -- very much for coming. Mr. Urquiola: Thankyou. Chair Sarnoff. You're recognized for the record. Javier Ortiz: Thank you, Commissioner. Sergeant Javier Ortiz, 710 Southwest 12 Avenue, Fraternal Order of Police, vice president. I just have a quick question, if anyone could answer this, 'cause I've been going to these CRA (Community Redevelopment Agency) meetings and -- Is there any money that's going to be coming out of this next budget, the one that we're talking about today -- is there any money out of the general fund that's going to go towards the CRA director's salary? And if yes, why? Is there anyone that can tell me? There isn't? Chair Sarnoff. There is none. Mr. Ortiz: None? All right, thank you. Robert Suarez: Robert Suarez, Miami Association of Firefighters. Commissioners, I have to remind you again that you're voting on the budget today, not funding the obligations that you're legally obligated to fund, contractual obligations that this institution has signed and delivered that this Administration has committed to, no different than any other contractual obligation. The City hasn't shown any exigent circumstances. You haven't shown, as required by law, that there is no other way to appropriate the funds to fund this contractual obligation. The decisions you're making today to not appropriate the money for those contractual obligations will come back before you again very soon. And if the Manager doesn't have a plan B right now, and if the only plan B is to lay off employees, maybe it's the Commission's responsibility to now start coming up with your own plan B because this will come back to you. I brought to you ideas, many of which have not been looked at. Your own revenue estimating conference made recommendations for a fire -rescue assessment that I've never heard come back to this Commission again. Just within the past two months, they made that recommendation. I brought to you ideas on collecting ad valorem for buildings that are not currently TCO 'd (Temporary Certificate of Occupancy) and purposely drag the process out. The Miami Today news just wrote about it on the front page, lower half, just last week about buildings that circumvent ad valorem by purposely getting their TCOs after the cut-off date. Your own compensation -- I think leading by example is by looking at your own compensation. I know the Mayor made a statement last week about your compensation being governed by the Charter. Well, about $58, 000 of your compensation is governed by the Charter, about another $47, 000 of your compensation is not. If City ofMiami Page 7 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 you're asking for the employees to do the right thing, to take one for the team, to do like the Miami Heat, I think you have to look at yourself in the mirror and ask yourself what sacrifices are you all taking. Chair Sarnoff Thank you. Mr. Suarez: Thank you. Chair Sarnoff. You're recognized for the record. David Duenas: David Duenas, 1901 North Miami Avenue. I'm a captain with the Miami Fire Department, and l just want to expand on some -- a point that was brought up relative to the CRA, which, as you know, Chairman Sarnoff, you chair. These are rhetorical questions. I would ask that you bear with me until the end of this. But how much is the director of the CRA getting paid and where is his salary being paid from? How did two of Chairman's Sarnoffs office staffers end up working for the agency that he chairs and given a 100 percent raises overnight? Who officially hired them and with whose approval? Was this because the Chairman was over his budget and that's why he gave up a month's salary as well? We sit up here and we talk about fiscal responsibility, yet, you yourself Chairman Sarnoff, cannot balance your own office budget; you sought to acquire CRA funds to do so. And when that didn't happen, two members of your staff were hired by the CRA, which you chair. You deny any knowledge of this transfer and subsequent increases in pay. So as I see it, that makes you one of two things, either an inept manager or a liar. Which one is it? Chair Sarnoff. I don't manage it. Mr. Duenas: As I stated before, I'm a captain at Station 2, located on 1901 North Miami Avenue. That's in the heart of District 5. I'm there serving your constituents, Commissioner Dunn. This area of Overtown is the poorest of the poor. As I see it, you need to be a more vocal advocate for your constituents as it relates to the use of these funds. We give this money away to a crony of Sarnoff and in exchange for what? I wonder. What I caution you is be careful. Don't sell your soul to the devil; you're a man of God. Andl equate Commissioner Sarnoff to that analogy. Unfortunately, District 5 seat, since its inception, has an unfortunate perfect record where each of the Commissioners have either been -- Chair Sarnoff. And in conclusion. Mr. Suarez: -- indicted, arrested -- Chair Sarnoff. And in conclusion. Mr. Duenas: -- or in prison. Chair Sarnoff. And in conclusion. Mr. Duenas: In conclusion, please do me a favor, don't get caught up in that conspiracy and be a better advocate for the CRA dollars for the constituents that you represent. Thank you. Applause. Commissioner Dunn: Mr. Chairman, may I, before we continue? Chair Sarnoff. Go ahead, your floor. Commissioner Dunn: I just hope that we don't allow this to be personal. That's all -- you can City ofMiami Page 8 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 make your point and you're entitled to that. Please don't -- I've not personally attacked anyone. We've done this, what we thought, for what we believe is for the good of the entire City, and I'm just asking you don't make it personal, please. Chair Sarnofff. You're recognized for the record. FrankMainade: FrankMainade, City ofMiami Fire -Rescue lieutenant for 28 years. Mr. Commissioner, Commissioner Dunn, I would like to address your comment. We didn't start making this personal. Making it personal started here. It started at your seat, your seat, Commissioner Sarnoff, next seat, next seat over. And this is the reasons why. What's conveniently been left out of the paper by the Miami Herald is the 10 percent that we already gave back. We gave that 10 percent back with an agreement that we would have a contract for another year. That didn't happen. Water under the bridge, right? Just move on to the next year. Let's declare urgency. So what do we do with this urgency? We get a pony of attorneys that aren't even our City attorneys to come in here, union busters, attorneys that are using ideas, simply ideas that haven't been proven and we give -- and we feed to the Miami Herald numbers, numbers such as 5 percent for those making less than 40, 9 percent between 40 and 100, and 12 percent for over 120. Yet, I wrote a e-mail (electronic) to all the Commissioners. I got an invite by Commissioner Suarez. I spoke with Commissioner Sarnoff andl spoke briefly with Commissioner Carollo and today, I had the fortunate opportunity to speak to the Mayor. What I went to speak to him about is what are the real numbers. The real numbers, sir, is that mine is 30 percent; other members, 39 percent. In my fire station -- Miami Herald, maybe you'll get this right this time -- the pay cuts are between 18 and 28 percent. Mr. Manager, where's the fairness there, I ask you? Because you know what, I can't take a 30 percent pay cut. I -- all did and all I do is come to work every day, get on the fire truck, do my job, save lives, and every once in a while enjoy myself with my friends at the station. That's what we do. Chair Sarnofff. And in con -- Mr. Mainade: We come here to work. Chair Sarnofff. In conclusion. Mr. Mainade: In conclusion, whatl say to you, Mr. Commissioner, all the Commissioners and the Manager, stop any and all pay cuts until a full disclosure of the total effects of the pay cuts are clearly understood by the Mayor, the Commissioners, and the residents because what you're doing is irreversible to those individuals that are going to get hit in a matter of days. Chair Sarnofff. Thank you. Applause. Chair Sarnofff. You're recognized for the record. Timothy Gleason: Timothy Gleason, City ofMiami Fire Department, ten years, fire station 6A. Today we're here discussing the City of Miami's proposed budget and the significant impact it will have on the dedicated employees of this City. Simultaneously to these proposals, you, the Commissioners, are proposing salary increases to some of your favorite employees. Quite frankly, this is an insult to every employee standing behind me. The proposal of the new executive salaries covered by the CRA serves frankly are an insult to the employees who are scheduled to take drastic pay cuts, huge, unprecedented, life -changing pay cuts within the next couple days. You sit up there with the audacity to propose an executive package containing a pay plan worth $210, 000, cashing in an -- of unused vacation, sick and holiday time, a $27, 000 a year in deferred compensation deposit package when most of the City employees standing behind you shortly will be dipping into their deferred compensations to make ends meet. You're City ofMiami Page 9 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 offering an $800 a month vehicle allowance and all of his medical benefits covered by the CRA. But the most offensive, a 9 percent a year for three years, totaling 27 percent in raises. When asked about it, these were the proposed director's comments, and he made these comments through spokesman David Karsh. He made it clear that he is being paid through the CRA and not the City's general fund. And he said the CRA is not facing the same financial challenges as the City is addressing. Apparently, this new director is so qualified, he doesn't even know that his budget comes from taxpayers' dollars as well. When union president Robert Suarez proposed a freeze of contributions to the CRA to help offset deficits, none of you listened. In fact, Commissioner Sarnoff opposed it, even though the CRA can obviously absorb it. So where are these candidates comingfrom? Is it a coincidence they're comingfrom Commissioner Sarnoffs office? Chair Sarnoff In conclusion. Mr. Gleason: I'm wrapping up, sir. Give me one second. It is a coincidence that they come when the Commissioner's overspending his budget? I think not. Commissioner Sarnoff, you were once quoted as saying, 1' could have killed my guidance counselor when he told me to go to school and work hard. I should have just become a firefighter." Chair Sarnoff That's not what I said. Unidentified Speaker: Yes, you did. Mr. Gleason: Aside from the substantial amount of -- Chair Sarnoff Not what I said. Mr. Gleason: -- education we undergo -- Let me finish. I'm almost done. Chair Sarnoff You finish up now. Mr. Gleason: Aside from the substantial amount of education we undergo in the pursuit of this career, there are some things that cannot be taught. Chair Sarnoff In conclusion. Mr. Gleason: I'm concluding. Just give me one second. Chair Sarnoff You're done. Thank you. Note for the Record: Chairman Sarnoff turned off microphone; therefore, speaker's comments were not transcribed. Chair Sarnoff Next speaker, please. Next speaker, please. Applause. Chair Sarnoff You're recognized for the record. Scott Dean: Scott Dean, lieutenant, 11 years of service, City of Miami Fire -Rescue. Count me as one also. When people think of firefighters, typically they think about fires and car accidents. I would like to speak briefly on a level of skills beyond that of the entry-level firefighter. The recent actions of this Commission will directly impact our future's ability to provide and maintain these services to our community. Our emergency medical technicians, paramedics, hazardous materials, dive rescue, technical rescue, instructors, fire boat, special weapons and tactics, City ofMiami Page 10 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 SWAT, medics. What do all these teams have in common? Two things: training and risk. Training, it takes hundreds of hours of training to begin a career of one of these teams and thousands of hours to maintain throughout one's career. Firefighters are consistently learning about the newest threats facing community and the best technology available to mitigate them. Risk, being a firefighter holds a level of risk in and of itself, but a career in each of these specialty teams increases our risk exponentially. So how can we ensure that these individuals will be willing to accept a greater level of risk beyond that of an entry firefighter? Two things: one, ensure the employee behind me is taken care of two, ensure their family is taken care of. The concept is a fact so well known that for a form of this idea is quoted in our firefighter's prayer that is recited throughout this world. The last statement of the prayer says, andl quote, And if according to my fate, I am to lose my life, please bless with your protecting hands my children and my wife. "Only then can an employee be at peace with the fact that this call to service could be their last call. We have historically been such an aggressive department in part because of the known of our City has always taken to care for us as well as our family. To us this is common sense. As a matter of fact, this is part of your required reading for promotional exams. Leadership books that help you to understand the needs of your employees. We are taught this as part of our professional development. It is only when you truly understand the needs of your employees can you be a great leader. It is required reading for us. It should be a required reading for all of you. Maybe then you'll recognize that the City's greatest assets are not dollars. The greatest assets are its employees behind me. Chair Sarnoff In conclusion. Mr. Dean: At a time when you should be focused on your employees on how to make a better place to live and work, supporting events such as new and exciting seasons, like the Miami Heat, your employees are focused on self-preservation. Chair Sarnoff Thank you. Mr. Dean: I'm finishing now. Chair Sarnoff Thank you. Mr. Dean: Give me one minute, please. Chair Sarnoff Thank you. Mr. Dean: And determine the publicity protest the City ofMiami at every major event. Andl end with this, City Manager. No plan B? Are you kidding me? You know what happens if we don't have a plan B? Chair Sarnoff Thank you. Mr. Dean: Citizens die. Applaus. e Chair Sarnoff Next speaker. Craig Radelman: Chairman Sarnoff, before I start speaking, with all due respect, I'd like to request, on behalf of the members standing behind me, they have offered to defer their time to me to save on repetition and just speak our minds. We were all going to speak on the same subject. Chair Sarnoff Go ahead, speak. City ofMiami Page 11 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Radelman: Is their time deferred? Chair Sarnoff. I don't know. Just start speaking. Mr. Radelman: Chaplin Craig Radelman, City ofMiami, 24 years and counting. You can count me as one also. Over the last 18 months, we've talked about the slander campaign that you've had against us. It talked about the pension costs being too high. Actually, I believe the numbers are close to $86 million this year. I have to agree with you, $86 million out of one year's budget is unacceptable. But the fact of the matter is over the last 20 years, the average has been $21.6 million. That's a far cry from the $86 million number we continually hear. In fact, that comes out to 4.32 percent of this year's actual budget. What caused this? Was it the employee standing behind me? I don't believe so. I believe it was each and every one of you and, in all fairness, those that sat in the seats before you that ignored the advice of the financial experts that said you need to put away for a rainy day. On the years that were good, you need to put some money away 'cause they're not always going to be good. And ifI don't put away for a rainy day and my roof leaks, I guess it's going to keep on leaking. That, to me, is fiduciarily irresponsible. And the other thought might be that those before you just deferred it to the next guy and that concept cannot be tolerated. By itself the difference between the $86 million approximate number I heard and the $21.6I just spoke of is a $65 million difference. If you add that to the tax cut that the citizens are enjoying right now, that comes very close to actually balancing your budget. What a novel concept. The fact is that balancing the budget is really not the point here. The point here is malicious intent against the firefighters and other employees of the City ofMiami to try and hurt us, because what is being thought about and what is being done is not fair and it's not equitable. We're talking about massive insurance changes, those of which we do not recognize at this time because for one, as has been mentioned, the insurance doesn't go into effect till January -- Chair Sarnoff. All right, you're over your time. Who's going to sit down? Okay, go ahead. Mr. Radelman: Thank you, sir. The massive insurance changes we really don't know about at this point. The pension changes, as we know they are significant, were unclear about how significant they are because we believe there has been a lack of transparency, as you've heard from the lawyers and the union presidents before me, and we're not even sure if they're legal. Now let's talk about the salaries. The salary statements that the media has been given have made everybody believe, including the citizens we see in the street everyday when we converse with them, they're led to believe they're between 5 and 12 percent. Well, the fact of the matter is that that is just not true, andl think that's been brought to all of your attentions at this point. The actual numbers, according to our union president when he spoke to you last time, he believed they were between 18 and 28 percent. 171 use those numbers for right now, and that would give us an average of 23 percent. That's a far cry from the 5 to 12 percent we've spoken about or you've spoken about. It's actually two to four times that actual number. Now let's take a real good look at these numbers. The Budget director or the young lady that was filling in on -- I'm sorry if I don't recognize her title -- said in the last presentation that the salary savings to our budget from the Fire Department alone will be $12.1 million. Well, the Fire Department budget is approximately $88 million, and it's been well spoken of that 93 percent of that goes to salaries. It's a salary, you know -- it's the salaries that run the Fire Department. We work very well with very little when it comes to the other parts. That would leave about $81.84 million of that budget going towards salaries. Well, if 12.1 million is what the savings is, that actually equals 14.78 percent. If we're talking about 23 percent average, that's $18.82 million. My question is where's that money going to? And those numbers I just spoke of were numbers that we knew weeks ago. Now we're hearing, as of last Friday, that approximately 100 employees are taking an additional 5 percent on top of that and another 17 to 20, including myself, are taking another 10 percent on top of that. Chair Sarnoff. All right, your time's up. Who's next? Okay. City ofMiami Page 12 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Radelman: Okay. So these cuts for myself are 38 and a half percent approximately 'cause I haven't physically seen them on my check yet. For you to compare your moving money around from CRA projects, which I like to call your pet projects, as your way of giving in some of the skin, Commissioner Dunn, that is an insult. That is an insult to my integrity and to my honor. This is why, from the beginning, I said this was malicious. Now let's talk about the citizens' cuts. You said many times, okay, this budget will have no cuts to the citizens. Mr. Sarnoff, in the last meeting you spoke about brown outs in other cities and how that would be unacceptable in our City, when just last year yourself and the Mayor who sits behind me voted on a $15 million plan to save money in the Fire Department that included brown outs that went into effect last October 1 and have been in effect for a full year as of now. Andl want to make one thing perfectly clear. For the record, however you want to call it, no service declined to the citizens will be the fault of any single City ofMiami firefighter, and I'm confident) speak for the police officers. We will do 110 percent of our job 'cause that's what we do. And those facts, I believe, are not completely important to you. Because we believe our Fire Department's the best in the nation. The police officers spoke that they believe that their service is the best in the nation. And the fact is we don't run a fire department. You had an expert from FDNY, Fire Department New York. That's all they do is fire. We are an all -hazards public safety department that provides fire, rescue, and as one of my brothers just spoke about, all types of special ops (Operations) services to our citizens for the same low price. Those special services that he spoke about you have decided to either eliminate or significantly reduce when it comes to salaries incentives or extra plus items, as I think you guys call them. I think that's what the City Manager calls them. That is not just for the current employees. That's for the current and future employees. That is nothing short of malicious. And the process you're putting into play is just going to make it harder to reverse when you ultimately lose that lawsuit. But this is where the problem really arises when we talk about the service cuts to the citizens. In approximately four and a half years, roughly 40 percent of our senior top staff captains, lieutenants, and firefighters, will be retiring. Chair Sarnoff. All right, stop. You're over. Okay. Mr. Radelman: Much of these retirements were premature in nature. They were premature because they needed to protect their families. Actually, the Mayor sat with one of our members who's sitting in this room right now and suggested to him, I think to protect your family, you should drop. Unidentified Speaker: That's me. Mr. Radelman: That was the impression we've been given. That was the fear factor we were told. Now we're talking about -- and this number is as of Friday -- approximately between 200 and 240 people are currently in the DROP (Deferred Retirement Option Plans). Within a one-year to year -and -a -half period, they're going to leave. Replacement of that, I would not want to be in my fire chiefs shoes. That will be almost impossible. And the big problem comes in that the only people we're going to get to work for the City at that time are going to be the bottom of the barrel 'cause all the quality employees will go to work for other departments in other cities. Why? We will have the worst pay package in South Florida, the worst benefit package in South Florida, and because of the way you found it necessary to go about these proceedings, we'll have an employer that just can't be trusted. Our contracts are not being honored. And when somebody decides to become a firefighter, they're not going to apply for a job. They are starting a career, a career that starts with the first day they enter the fire academy and doesn't end until after approximately 30 years when they finally get to enjoy their retirement. But the process that takes place in the middle is the most important part. That's where there's a mentor, an internship that goes on from day one to the day you leave. It never ends. It is a constant educational experience. And unfortunately, what I'm concerned about is that we will become a donor department, similar to what the police department talked about four and five years ago, when every time they'd hire somebody, they'd pay them, get them trained and they'd City ofMiami Page 13 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 leave to go to another department. That cost us. You could also equate that years ago back to the Miami River Cops. Look where that put us. And the saddest reality of all is the fact that at the end of the day, there is a potential for a firefighter and/or a citizen to die because of these cuts, and it kills me to even think of that thought. All because of -- Chair Sarnoff Stop, stop, stop, stop. Next. Mr. Radelman: -- the changes that you had to make and you had to make those changes -- and I'll quote the City Manager when I say because of a lack of political will, a lack of political will to do the right thing, to do a rollback rate, to talk about small fees, not hurt our citizens. That's not what any of us want. But to put the burden completely on us is completely unacceptable. And none of us have spoken yet about the effects on the local economy. The 3,500 approximate employees in the City ofMiami are not going to be able to support the little cafeterias on the corner. They're not going to be able to spend any money in the local economy. And what's that end result going to be? And that doesn't even talk about the homes that are going to be foreclosed on that the employees are going to lose, their cars, the local businesses that are going to hurt. That is unacceptable. There's four words I can think of very quickly: pride, dignity, honor, and courage. Those are things that police officers and firefighters live by. That's what make us different than most people. That's what make us special and why you should think that we are special. And in conclusion, I want to advise you that it is not too late to do the right thing and do things right. You can vote no tonight. You can reschedule a meeting for September 30 and you can sit down with the City Manager and your high -dollar legal people and figure out a fair and equitable way to come away with these cuts. I can sit down with you in 15 minutes and get you your $12.1 million and I'm just a fireman. I'm not a rocket scientist. Let's be fair and equitable. Do the right thing. Thank you. Applause. Chair Sarnoff You're recognized for the record. Anyone else wishing to be heard on BH.1 through BH.17, please step up. Mr. Castillo: I just have one minute after (UNINTELLIGIBLE). Chair Sarnoff No, no, no. You've spoken. Mr. Castillo: Can take just one minute? Chair Sarnoff You've spoken. Mr. Castillo: Just one minute. Chair Sarnoff No. Mr. Castillo: My name is -- Note for the Record: Chairman Sarnoff turned off microphone; therefore, speaker's comments were not transcribed. Chair Sarnoff Sit down. You're going to be removed and you don't want to be removed. All right. Ms. Thompson: Chair, ifI might ask you just for clarification, because I have a number of speaker sheets that have been completed for items other than BH.1, 2, or 3, can we make sure that individuals understand if they want to speak now on those items -- you did say BH.1 through BH.17. City ofMiami Page 14 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.2 10-00933 Office of Strategic Planning, Budgeting, and Performance Chair Sarnoff Well, you're right. And what I'll do is I'll just take this on BH.1 through BH.3. Ms. Thompson: Thank you. Chair Sarnoff And we'll have public hearings on BH.4 through BH.17. ORDINANCE Second Reading AN ORDINANCE OF THE MIAMI CITY COMMISSION DEFINING AND DESIGNATING THE TERRITORIAL LIMITS FOR THE CITY OF MIAMI FOR THE PURPOSE OF TAXATION; FIXING THE MILLAGE AND LEVYING TAXES IN THE CITY OF MIAMI, FLORIDA, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 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 Commissioner Dunn II, seconded by Vice Chairman Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II 13204 Chair Sarnoff All right, BH.2, I believe is -- has that been presented, Mr. Manager? Carlos A. Migoya (City Manager): (UNINTET,T IGIBT ,F) correction. Chair Sarnoff All right. So BH. 2 -- Priscilla A. Thompson (City Clerk): Before you go on Chair, because I want you to make sure it's all clear, we're closing the public -- Chair Sarnoff Sorry. You're right. Let me close the public hearing. I apologize. BH.2, is there a motion? Commissioner Dunn: So moved. Chair Sarnoff Motion by Commissioner Dunn. Is there a second? Commissioner Gort: This is the trim. Vice Chair Carollo: Yeah, Mr. Chairman. Commissioner Gort: Second. Vice Chair Carollo: I want to verf, is this for the millage or --? Commissioner Gort: Millage. Chair Sarnoff Yeah, BH. 2. Vice Chair Carollo: Second. City ofMiami Page 15 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.3 10-00934 Office of Strategic Planning, Budgeting, and Performance Chair Sarnoff Sony? Vice Chair Carollo: Second. Chair Sarnoff Second by the Vice Chair. Any discussion, gentlemen? Commissioner Dunn: Mr. Chair. Chair Sarnoff You're recognized, Commissioner Dunn. Commissioner Dunn: I just wanted to put on the record, I was absent at the first reading of this, and) wanted to first apologize to my colleagues as well as to the citizens. I had something) had to take care of. But for this particular item, which is a second reading, which is the one that counts, I wanted to make the motion because this is the one that counts. Chair Sarnoff Okay. Commissioner Suarez: Mr. Chairman. Chair Sarnoff Commissioner Suarez is recognized. Commissioner Suarez: Thank you. On BH.2, my understanding is the only thing that we can do is lower the millage rate. Is that -- isn't that correct? We cannot raise the millage rate, so we're capped -- Julie O. Bru (City Attorney): That's correct. Commissioner Suarez: -- today? Ms. Bru: You had advertised this when the trim bill went out, so this is -- the only options that you have at this point is to adopt this or lower it. Commissioner Suarez: Okay. I just wanted to clarify that for the record. Thank you. Chair Sarnoff All right. Anyone else wishing to be heard on BH.2? Hearing none, Madam City Attorney, it is an ordinance. The Ordinance was read by title into the public record by the City Attorney. Ms. Thompson: Your roll call. A roll call was taken, the result of which is stated above. Ms. Thompson: The ordinance has been adopted on second reading, 5-0. Chair Sarnoff All right. We're going to pass BH.3; we'll do it at the end. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION MAKING APPROPRIATIONS RELATING TO OPERATIONAL AND BUDGETARY REQUIREMENTS FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011. City ofMiami Page 16 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 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 Motion by Commissioner Gort, 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-10-0434 Chair Sarnoff. For all of you that stayed, this is it, BH.3. This is where the rubber meets the road. How much sleep did you get last night? Mirtha Dziedzic (Interim Director, Strategic Planning, Budgeting, and Performance): A bit. Chair Sarnoff. Okay, just checking. Carlos A. Migoya (City Manager): What we're discussing is as we've gone through all the -- which is part of the reason for doing this at the end, through the entire set of meetings, we have two changes since -- in addition to the ones that previously discussed. Those are the zoning fee changes that were turned down, and Mirtha will go through the dollars here in a second, and the other was that $160,000 difference on the GESE (General Employees' and Sanitation Employees) retirement fund budget that will also come into play, so that's one negative and one positive that we will have. And then those changes, what I propose is that the net, we will use it going back to the capital expenditures. Ms. Dziedzic: Okay. Chair Sarnoff. You're recognized for the record. Ms. Dziedzic: Mirtha Dziedzic, Budget Department. There were a couple of modifications done to the original budget. The first was allocating $100, 000 contribution to the Gusman in NDA (Nondepartmental Account). We reduced the contribution to the BID, the Business Improvement District, by $30, 000, and then the remaining allocation -- the remaining $70, 000 was taken out of transfers out for police vehicle purchases so that the bottom line wouldn't change. Now, the new changes were the $15, 000 that were not approved in the zoning fee structure change, so that's a reduction to charges for services, in addition to transfers out we're taking out of the capital contributions at this point. Vice Chair Carollo: And what was that amount? Ms. Dziedzic: Fifteen thousand three hundred and forty-eight dollars. Now, additionally -- Vice Chair Carollo: And that's under transfers out? Ms. Dziedzic: Correct. Now with the new change from GESE where we're reducing $160, 000 from the pension allocation or the advances in the pensions area, that I would suggest we put it back into the transfers out to make up some of these shortfalls that we've taken for other areas, so it would go to police vehicles at this moment. Vice Chair Carollo: I'm sorry. Restate that again. Ms. Dziedzic: The 160 that we're taking out of pensions, I would suggest to move it out of the pensions area and put it in the transfers out for the police vehicles. City ofMiami Page 17 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff Isn't -- doesn't all your accordion occur at your capital expenditure level? Ms. Dziedzic: I'm sorry? Chair Sarnoff Doesn't the accordion in the way you do business here occur at your -- Ms. Dziedzic: Correct. Chair Sarnoff -- capital level? Ms. Dziedzic: Correct. Chair Sarnoff So it's either five more police cars or -- Ms. Dziedzic: Or five less. Chair Sarnoff -- four less police cars? Mr. Migoya: Basically, that's what we've done. The need is higher -- the need for capital is higher than what we've got. The shortage has really been used to balance on the capital expenditure so as we find dollars in the future, all the revenues and expense and whatever, if we have any surpluses, what we will have to do is make adjustments during the year to get at the capital. Chair Sarnoff Right. To fund what you don't expect to be able to fund in total? Commissioner Gort: Right. Mr. Migoya: That's correct. Chair Sarnoff Okay. Ms. Dziedzic: So those are the changes, the four changes to the resolution. Chair Sarnoff All right. Why don'tI do this? Why don'tI open up a public hearing on BH.3? Does anybody wish to be heard on BH.3? Julie O. Bru (City Attorney): Chairman, I believe you opened up the public hearing already on Chair Sarnoff Oh, onBH.3-- Ms. Bru: Yes, you did. Chair Sarnoff -- there was. I apologize. Okay. So we've already heard from the public on BH.3. Mariano Cruz: (UNINTET,T IGIBT ,F) finish, okay? Chair Sarnoff What's that? Mr. Cruz: The public hearing was already conducted -- Chair Sarnoff On PH.3 [sicg? City ofMiami Page 18 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Cruz: -- before? Okay. Yeah. Okay. Then that's -- no. It was -- (UNINTET,TIGIBT,F) long time ago. Chair Sarnofff. Seems like it, doesn't it? All right, is there a motion as modified? Commissioner Gort: Move it. Commissioner Dunn: Second. Chair Sarnofff. All right, motion by Commissioner Gort, second by Commissioner Dunn. Discussion, gentlemen. Vice Chair Carollo: Yes. I'm going to have discussion, but can we take a brief recess? I think if we take a brief recess, it'll go a lot faster once we come back. Chair Sarnofff. Let's take ten minutes. Vice Chair Carollo: Thank you. [Later... Chair Sarnofff. Vice Chair is recognized for the record. Vice Chair Carollo: Thank you, Mr. Chairman. One of the things that I addressed in the last meeting that I want to address again now is the lobbying expense. I think we had $200, 000 allocated or budgeted for lobbyist expense. I requested to see what that make-up is. I have seen the make-up of all the different lobbyists that we want to hire on a monthly basis and the actual amount is $222, 000, not 200, 000. So I don't know if you all have received the same information. The bottom line is that I think that amount is high. I think it should be reduced. I could say the names -- if you don't have the amounts, I can say the names of the firms or the person and the amounts they're receiving on a monthly basis, but I think that amount should be reduced. I've also asked as far as what have we received per lobbyist. I saw some items, but then again, I don't know if you could really -- or at least, I don't see them being the success of any one of these lobbyists. So I don't know how you all feel about it. I -- right off the top, I see that the back-up information is $222, 000 and we're showing in our budget 200, 000. There's one lobbyist that supposedly hasn't worked with us in the past or this was the first year and he's at $2,000 a month. I don't know if you want to reduce that. And that will take us to -- within our budget of 200, 000, or if you want to reduce the 200,000 even more. Chair Sarnofff. Let's discuss that. Does any Commissioner want to weigh in on the lobbyist issue? Commissioner Dunn: Yes. Mr. -- Commissioner Gort: Yeah. Chair Sarnofff. Commissioner Dunn, you're recognized. Commissioner Dunn: I guess what I would probably need to hear is what are their roles in terms of -- and some type of way, measure, if we could, their effectiveness in terms of how they've been able to assist the City and what their duties are, I guess. I guess it's kind of a -- but I hear -- I see where the money is identified, but I just need to hear that. And then if they could also be -- how many lobbyists do we have, four, five, six? I remember we looked at it last week. City ofMiami Page 19 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: Six. Commissioner Dunn: Six, yeah. Commissioner Gort: Six. Commissioner Dunn: Okay. And then I would like to know -- I would like them to be identified, and so that would help me. Vice Chair Carollo: Well, I could identify them. Commissioner Dunn: Okay. Vice Chair Carollo: For federal lobbyists, we have Akerman & Senterfitt at $3, 000 a month. For state lobbyists, we have once again Akerman & Senterfitt at $3, 000 a month; state lobbyist -- well, the remainder will be state lobbyists -- Corcoran and Johnston at $3,500 a month, Ronald Book at $4, 000 a month, Wren Group at $3, 000 a month, and Gomez Parker at 2,000 a month. Total monthly is 18,500; annually will be 222, 000. Commissioner Dunn: I'm sorry. Mr. Chairman. Chair Sarnoff. You're recognized. Commissioner Dunn: So I guess the first question, why do we need all of those vary [sic] lobbyists? I kind of will yield to you, but I just want to -- if the Mayor -- I think he -- I don't -- somebody. Mayor Tomas Regalado: No. I -- we brought down the proposal after the first budget hearing. I think we brought it down to -- from 300,000 or something to 220,000 or -- Vice Chair Carollo: It's showing 222. However, our budgeted amount is 200, 000. Mayor Regalado: Two hundred thousand. I think that we could bring it down even little more to 200,000 or -- my concern is that if we don't have this lobbying team -- now this coming session we will have a totally new cabinet, plus like old -- a third of all the state senators, especially from South Florida, plus several new state representatives, so we don't know the make-up of the new state Legislatures. We do have some very important issues. We have the halfway houses and adult living facilities that we must do something about it. This is -- it's very important. Actually, in a few minutes, Commissioner Suarez and myself will have a conference call with Tallahassee about some issues that are really urgent in District 4 because of out -of -control adult living facilities. We will have also the storm sewer issue for the City, and of course, we have the issue of Flagstone before the Cabinet; plus, we may need legislation on the Playhouse, if that is the will of this Commission. We may need also -- and this is very important -- the support of the lobbying team in the Marine Stadium. If we meet the deadline, we do something before the 31st, we may be able to access like $8 million in stimulus money for the Marine Stadium, but we will need the support of the state Legislature and the state Cabinet. So there are some issues. But yes, we can bring it down to 200, 000, reduce the monthly payment or reduce a firm, whatever is the will of this Commission. I think we could bring it down to 200, 000, if that is the will of the Commission. Chair Sarnoff. Well, can I just say a few things? I mean, the lobbyists ordinarily can tell you what they brought -- pay them 5,000 or ten 10 or 15, $20,000, they'll tell you what they brought back for you. You know, they like to say that's your return on your investment. I -- before we cut lobbyists, I'd like to know what was our return on the investment. How have we done? City ofMiami Page 20 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Kirk Menendez: Well, Commissioner, Kirk Menendez -- Chair Sarnoff There you go. Mr. Menendez: -- with the office -- Chair Sarnoff. There's our lobbyist. Mr. Menendez: Yeah -- of the Office of City Manager, Kirk Menendez. Over the last three years on the federal side, we've received easily more than $2 million monies for storm water, road improvements. That's on the federal front. And we're in the process of submitting our priorities for the FY-2012 fiscal year. We've received input from the departments on that. I'm sorry. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. Go ahead. Vice Chair Carollo: I'm sorry. Where are we with regards to the 25 percent, from 15 percent to 25 percent, which I think is more important to many of the residents in the City ofMiami? Mr. Menendez: I spoke to our lobbyist just Friday of last week. We are working on presenting an amendment to the omnibus bill, which will be voted on by Congress. It's expected in November. It'll be drafted in October, but because of the elections, Congress' schedule is slightly off from past years. In that amendment, which Senator Lemieux has already drafted, and we're getting the support of Senator Nelson; and on the House side, Ileana Ros, Debbie Wasserman -Schultz and Kendrick Meek. If we're able to get it in the omnibus bill, there's a good probability that it will pass and the City will allow -- will be given a three-year waiver, moving the 15 percent cap up to 25 percent. It's a matter of getting it on the bill, but we're working with the Senate and the House Committees and Appropriations on that matter. But we have the full support of our local delegation in the House and the Senate. Chair Sarnoff How have we done -- I'm sorry -- on the other ones? Mr. Menendez: Well, on the state side, we had 75 percent success rate this past state legislative session. Some of the successes were, as you know, the red-light cameras, they approved the home buyer assistance program, some of our priorities. Also the transportation surtax funds were on demand transit service. Our team was part of the push to get that approved. Green corridors also -- there are several programs. The ones that have economic impact are job creation, the tax credits for the film industry, which I know is very important for the City of Miami and South Florida in general; red-light cameras is a line item in your budget, estimated at $8 million annually. On the federal side is where you see lately the actual dollars, but a lot of the bills that are passed in Tallahassee that we push do have a financial impact if not directly, indirectly. Commissioner Suarez: Mr. Chairman. Chair Sarnoff. You're recognized, Commissioner Suarez. Commissioner Suarez: Mr. Menendez, can you explain on page 2 of the packet that you gave us the 7,015,811 statewide for the Department of Elder Affairs and Local Services Program, LSP, elderly meals program, andAlzheimer's services programs of particular importance to local governments were kept whole. Can you explain --? Mr. Menendez: Last -- yes, Commissioner. City ofMiami Page 21 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Suarez: 'Cause I think that's something that's important to all of us. It's very important for me, I could tell you that much. Mr. Menendez: I understand. Last legislative session Tallahassee, the Senate, on their budget, had zero dollars going to LSP; mostly elderly meals. The House did have budgeted $7 million. There was an impasse. We immediately sent all our lobbyists, full team, to push to make sure that the Senate, their budget mirrored the House side, $7 million. Without those dollars, the Department of Elder Affairs basically would not have had enough funds to provide meals to our elderly, those the most vulnerable in our community, do we rallied our team to push for that. I know other cities did, but because of our population being so great, seniors in our community, we sent out the entire team, and we were successful in getting the seven -- more than $7 million budgeted for elder affairs and a large number of those dollars are for senior meals. Commissioner Suarez: Mr. Chairman. Chair Sarnoff Go ahead. Commissioner Suarez: I mean, I think that's significant because those are not general fund dollars, but they go directly to the most needy -- Mr. Menendez: Right. Commissioner Suarez: -- members of our community and they flow from the state. Mr. Menendez: Yeah. And a great many of the agencies that serve our seniors depend on those dollars. Commissioner Suarez: Right. I have to tell you that when I went up there and met with the team on the ALF (Adult Living Facility) issue, we got it past the House with your help and almost got it past the Senate. And this is something that the Mayor's been championing for many, many years andl was trying to give it that last push. But I found them to be very receptive. You know, we had a meeting. Everyone got -- came to the table. Everyone gave ideas and everyone had their little bit to contribute. So hopefully, this legislative session will hopefully finally get it done. Mr. Menendez: We're in the process of working also on our state legislative priorities for the next session, so I'll be approaching each one of your offices with regards to your priorities. I'd like to make a comment, if you don't mind, in terms of the contractual compensations for our lobbyists. In the last 12 months, their contract -- the compensation per contract has been slashed approximately 70 percent. The numbers that they received in 2009 -- 2008-2009 are approximately 70 percent -- 60, 70 percent more than what we're asking for with the upcoming year, so I understand the concerns and the issues involved with the dollars that we provide the lobbyists, but for the work they've done and for the amount of dollars that their contracts have already been slashed, I think they -- they're doing a good job. Chair Sarnoff Commissioner Gort. Commissioner Gort: Andl read the document that you left in my office. My question is, you said we had six lobbyists. Mr. Menendez: Currently we have two federal and four state, and what's being proposed in order to get down from 279 to 222 is, I would say put on the inactive list, one of the federal lobbyists and reduce the compensation of the sub in the list of the state lobbyists. Commissioner Gort: Do we need four at the state level? City ofMiami Page 22 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Menendez: Well, as Mayor Regalado alluded to with the elections and the turnover in the Cabinet, there are 160 members of the Florida Legislature, 40 Senate and 120 House. It's nearly impossible for any one or two lobbyists to have relationships with all members. And as Commissioner Suarez knows with his issue, to get any piece of legislation through and passed, you need consensus and you need to reach out to senators and representatives from parts of the state of Florida that you would think have nothing to do with our issues, but in fact their vote has a great impact on what we trying to do. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Vice Chair is recognized. Vice Chair Carollo: Thank you, Mr. Chairman. I mean, that makes perfect sense, what you're saying. However, it seems like our lobbyists are all local. I don't see any lobbyists here from Central Florida or North Florida. Mr. Menendez: Corcoran and Johnston is based on the west coast. They're based out of Tampa, with offices in Tallahassee. All the lobbyists, I agree, have offices in Miami, but a lot of these firms, like Akerman Senterfitt, have offices throughout the state. Vice Chair Carollo: And you said that there was currently two federal lobbyists? Mr. Menendez: Yes, Alcalde and Fay and Akerman Senterfitt. Vice Chair Carollo: And that there was four -- there is how many state and we increased? Mr. Menendez: Currently we have four primary lobbyists at state and one sub, sub being the Wren Group. The four primary are Akerman Senterfitt, Corcoran and Johnston, Ronald Book, and Gomez Barker. Those are the four primary state lobbyists. Vice Chair Carollo: And can you define the difference between a primary lobbyist and a sub? Mr. Menendez: The sub is brought in when they specialize in an area, unique, sort of an expert in a particular area. Wren Group is very strong in all types of water management, storm water. And in the past, they've been very successful in guiding the City, advising them on those types of issues; and in past, prior to the economic crisis, were able to help bring in certain dollars for the City for water projects. Vice Chair Carollo: Do we still pay them 3,000 a month or is it as an as -need basis? Mr. Menendez: It's -- currently, it's 3,750. But in order to get down to 222, it's being reduced down to 3,000. Vice Chair Carollo: However in our budget we're showing 200, so in reality, we still need to come down another 22,000. If we reduce the $2, 000 per month, then we come -- then we will be within budget, correct? Mr. Menendez: I don't have the numbers exactly to be able to comment on that -- Commissioner Gort: That'll be 24,000. Mr. Menendez: -- but I trust your -- Commissioner Dunn: Twenty-four thousand. City ofMiami Page 23 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: Right? Mr. Menendez: -- judgment. Commissioner Gort: Yeah. Commissioner Dunn: It'll be more than that, 24,000. Vice Chair Carollo: Yeah, 24,000. So be -- we'll be at 198, 000, well within our budget, if that's what the will of the Commission is to, you know, maintain lobbyists at 200, 000. Chair Sarnoff Commissioner Gort. Commissioner Gort: These individuals already been selected through a process, I imagine. Mr. Menendez: There was an RFP (Request for Proposals) in 2007. Through that RFP, a pool of lobbyists were selected. From that pool, I would say the equivalent of the NFL (National Football League), you have the 53-man roster and then you have the inactive. There's a pool of lobbyists. The City can select among that pool which lobbyists they're going to use on a year-to-year basis. Currently we have active contracts with the lobbyists you see on the list. There're additional firms that we aren't currently using, but we, under the RFP, are allowed to use them at any given time. But currently the active lobbyists from the pool are the ones that we mentioned. Commissioner Gort: And this pool, according to the RFP, is for how long? Mr. Menendez: Two thousand and twelve is the expiration for the state, I believe, and 2013 for federal. So we're approximately two to three years away for having to send out a new RFP and go through the process all over again. Vice Chair Carollo: However, we could still reduce -- Commissioner Gort: Yes. Vice Chair Carollo: -- their amount, right? They could -- Mr. Menendez: You absolutely have the authority to reduce their amount or you could simply ask the management team to reduce the numbers and we'd go back and look at each lobbyist one by one. Mayor Regalado: Mr. Vice Chair, if you want us to look at the whole list and then have a budget of 200, 000, we can reduce the monthly on several of them. Is that it? Vice Chair Carollo: We have the whole list in front of us -- Mayor Regalado: Okay. Vice Chair Carollo: -- and I see how much, you know, each is getting paid, so I'd rather just, you know, see if we can decide and move on with this. I mean -- if that's the will of the Commission. But we have the list in front of us; it's not that difficult, and we're seeing how much they're getting paid per month. And I just suggested hey, $200, 000 -- Commissioner Gort: Can I get a copy of that list? City ofMiami Page 24 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: -- that'll get us to 198,000 -- Commissioner Gort: Can get a copy? Vice Chair Carollo: -- which will get us within our budget. That's why I mentioned that. But you know, if there's other suggestions. Commissioner Dunn: Mr. Chair. Chair Sarnoff. You're recognized. Commissioner Dunn: Mr. Mayor, I believe I just kind of did the math in my head. If we're talking about -- if it's six lobbyists or five -- I'm just -- you're talking about maybe a little bit more than $300 a month from each one. That would come out to $1,800 if you did three times -- I'm sorry -- six times three hundred, that's eighteen hundred. So maybe 350 or something -- which doesn't sound -- I mean, I know people will bark at anything, but that's not a substantial -- so maybe like 350 -- I don't know. Somebody can do the math -- a month might give us that number. Mayor Regalado: You can do that. Vice Chair Carollo: The only thing I'm seeing is that some -- for instance, Akerman Senterfitt, from 2008-2009 to present, they have reduced more than double, so -- you know, and they're a big law firm, which you could be getting, you know, more bang for your buck because I don't know if they actual lobby as one attorney or if they go in a team of two or three, since this is the firm that we're hiring not just the individual lobby or lobbyist. Where there's some that in 2008 and 2009 weren't even part of our group. They weren't even funded. So I'm just wondering if we really need them. Mayor Regalado: You can do a percentage across-the-board, if you wish to, and result on the savings for $200, 000. So that's -- I mean, it will be easier across-the-board or -- Chair Sarnoff. We just need to do a 10 percent reduction -- Mayor Regalado: Yeah, 10 percent. Chair Sarnoff. -- on 220 and boom, we're there. Mayor Regalado: A 10 percent reduction of all the lobbyist team and that's it. You can -- Vice Chair Carollo: That would take calculations. Chair Sarnoff What's that? Vice Chair Carollo: Ten percent of three, ten percent of three, ten percent of three point five, four, and we would have to do the calculations to see what we'd come up with. Chair Sarnoff. Well, if it's -- if we're at 220 and we take 10 percent of that, we got to be within spitting distance. Let's -- can we do something else other than -- and we'll come up with a calculation that would come into your 200,000? Mayor Regalado: Ten percent is 22,000 -- Chair Sarnoff. Right. City ofMiami Page 25 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mayor Regalado: -- so it's -- 100 will take us to 198. You can do that. So you can do that by resolution right now. Vice Chair Carollo: What's the will? Mr. Migoya: Chair? Vice Chair Carollo: I thought it was much easier to take the 2,000 out, but what's the will of this Commission? Mr. Migoya: I was just -- can I propose something? Can you not allow the Mayor to figure out which way is most effective for all the lobbyists? He's kind of been working with these guys the longest, if it's okay with all of you. Mayor Regalado: No. But it's okay. I mean, we can take the 10 percent across-the-board and -- of all the firms. I don't think that there will be a big deal for anybody and nor anybody will -- Chair Sarnoff Tell them we're treating them like a Miami board, you know; everybody had to take -- Mayor Regalado: Right. Chair Sarnoff -- a 10 percent cut. Mayor Regalado: And they should know. Vice Chair Carollo: Mr. Chairman, one more thing. Chair Sarnoff Yes, sir. Vice Chair Carollo: Some of the highlights of the success, if you will, that Mr. Kirk Menendez have provided, can this success be tied to any one of these lobbyists? In other words, if someone going for the ride and just getting paid and others are working more? Mr. Menendez: Fortunately, in my opinion, we have not had that situation. In the past, when firms do not perform, we know it. But for the upcoming session, I'll do my best to provide specific individual reports per firm. However, I'd like to mention in terms of the state lobbyists, sometimes they block legislation that, if it passed it would cost the City ofMiami millions of dollars. So there may not be an exact dollar figure, but in terms of success and failure, I'll do my best to provide a clearer report to each one of you following the next session so that you can have a better picture of what each one does. Chair Sarnoff Commissioner Gort. Commissioner Gort: Yeah. I'd like to get a copy of the performance because some of those firms are very large firms andl think what we pay them in a month is $3, 000, which is very little for some of those firms. How much dedication do they really have for the City ofMiami? This is one thing that I would like to know. And the second question is the Wren Group, sub, we paying them $3, 000 and we don't use them all the time. Do we? Mr. Menendez: We use them basically as we use the other firms; in preparation for a session, during the session, and post session till the governor signs the bill. In preparation, the priorities for the City putting the package together and getting them out trying to get sponsors, that's prior to the session starting. So though there may be a month or two that there's a down time, I would say the majority of the year there is activity, not as much as during the session, but there is City ofMiami Page 26 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 activity in terms of preparation. Chair Sarnoff All right. Commissioner Gort: Okeydoke. Thank you. Chair Sarnoff Let's move on. What's your next issue? Vice Chair Carollo: Well, let's resolve this first. What are we going to do, 10 percent? Are we doing -- Mayor Regalado: So -- Vice Chair Carollo: -- get rid of the 2,000? Mayor Regalado: -- do you want to do the 10 percent so we know? Vice Chair Carollo: My preference is just to remove the one with 2,000 and just keep the rest. That's my preference. Now, if the Commissioners, you know, prefer to do, you know, percentages or so forth -- Chair Sarnoff Who's the 2,000? Commissioner Gort: Let's do a percentage. You need them all. Commissioner Dunn: Yeah. That way we -- 'cause -- Mr. Chair. Mayor Regalado: I would suggest to do the 10 percent and it would -- we get to keep everybody. Chair Sarnoff Let's just get a consensus. Who's in favor of the 10 percent? All right. Vice Chair Carollo: That's fine then. Chair Sarnoff All right. Vice Chair Carollo: So we'll do the 10 percent and then come up to 200, 000, but it'll still be 198, but it will be within the 200,000 budget. Okay, good. I want to mention one of the items again that mentioned in the last budget meeting under the NDA. I asked with regards to promotional activities, the Manager said that he would take it from the budget that we didn't need the 25,000 from promotional activities. However, it's still in our budget. So I want to make sure that that is amendment -- that is amended. And a friendly suggestion, something that I've been thinking now, especially with hurricane season. We don't have a generator in City Hall so when the power goes out and so forth, we are without power. Now I know we're going to have a command center and so forth. However, I know for a fact when the residents and my constituents need help, they call my office here. So I don't know if we don't have power, if we'll be able to operate from here. Andl think, in all fairness that, at the very least, you know, considering the safety, well being of our citizens, I think City Hall should have a generator. So instead of promotional activities and leaving it in promotional activities, I think this is something that will be, you know, very useful. Carlos A. Migoya (City Manager): I have -- Mr. Chair, I have checked with our auxiliaries -- with Jose Camero from GSA (General Services Administration). He thinks that we can get a generator into City Hall for approximately that price. Chair Sarnoff How much are the promotional activities? City ofMiami Page 27 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: Twenty five thousand. Mr. Migoya: The issue that they've had in the past has been location, but we will look at the ability to do so. Vice Chair Carollo: And all I'm saying is in the past -- well in the past meeting, I mentioned 25,000 of promotional activity and we decided that, you know, we didn't need it. However, when I saw the budget, I see it still there and that's something that I thought could definitely be useful in City Hall, especially -- I think recently the lights went out or so forth and our computers were out for quite a while or so forth, so I thought, you know, that that could be useful. Not only that, I mean, I envision, you know, working out of the office here when a hurricane comes, especially fielding the calls and so forth and having the staff fielding the calls. So you know, again, I just think that it's something that we should have. Chair Sarnoff All right. I think -- everybody in consensus with that? Vice Chair Carollo: Okay. Chair Sarnoff Commissioner Dunn? Commissioner Dunn: Yes. Chair Sarnoff Commissioner Gort? Commissioner Gort: Yes. Chair Sarnoff All right. Let's -- Vice Chair Carollo: So we'll do it as a transfer out? Ms. Dziedzic: Yes. I'll move it from NDA and put it in the transfers out for capital purchases. Vice Chair Carollo: Question, can I modify within line items my budget -- a Commissioner's budget as long as I stay within my budget? Ms. Dziedzic: Of course. Vice Chair Carollo: So I don't have to do any adjustments now, correct? Ms. Dziedzic: No. You can modify -- Vice Chair Carollo: As long as I stay within my budget -- Ms. Dziedzic: Absolutely. Vice Chair Carollo: -- I can modn5, the line items? Ms. Dziedzic: Yes, sir. Vice Chair Carollo: Okay. You know, I want to say that over the last few days all the questions that had from the different departments heads and so forth, I saw a concerted effort to be answered. And at the same time, I want to say that they're going to have a tough job ahead of them and that is because -- I mean, the -- and we saw it today. We saw all the employees coming before us. There is going to be some tough cuts coming ahead, and the truth of the matter is, City ofMiami Page 28 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 morale is going to be down. I know a lot of people don't understand morale, but I can tell you that morale will be down, it's going to be harder, and the department heads have their work cut out for them. So you know, I appreciate all the department heads, all the questions that I ask for them answering, and so forth because, you know, it shows that they were concerned, and not only that, they were part of the -- part of answering what thought were legit questions, andl truly appreciate that. There is another one item that keep mentioning andl want to bring up now for your consideration. We saw once again our employees coming before us and as I mentioned before, I've seen so many non -for -profit agencies coming before us and so forth and we helping out andl think now with the cuts that are happening, is also time that we step up for our employees, andl think the ones -- like I heard someone say today that he may lose his home, I think we should establish a fund for any employees -- and we'll work with the requirements and so forth -- but any employee that is going to lose their home, I think we should help out; that does have a severe medical problem for him or his family, him or -- he or her. I think we should up and help out, andl think we should establish a fund or at least a special revenue fund so we could help out. I believe that we -- in the next few weeks, we should look at the -- what's going to be requirements. Are we going to set up a committee and so forth? However, I think that we should start that fund with $500, 000, and I think it should come from the one-time pays. Commissioner Gort: I understand the Manager's -- come up with the trust fund with the larger amount than that. Mr. Migoya: We could do what the Commission pleases. What the Vice Chair andl were discussing obviously, we have the money set aside on the one-time pays and we kind of looked at that as a way to available -- make that available to -- once we know what the one-time pays are paying and so forth, so we can make that available from a vacation standpoint. But we also -- we had talked to both the Vice Chair as well as Commissioner Gort about trying to use some of those funds for these kind of emergencies. So what the Vice Chair was proposing is that we could start with half a million dollars. We see how that goes. The biggest challenge is going to be -- and we probably need to come up with a committee on what would be the parameters under which we grant these monies. So it's two o'clock in the morning and the brain doesn't work as well as it normally does at 9: 30 in the morning. But the idea was to possibly create a committee of different key employees throughout the City and perhaps one of you that we can kind of figure out what that looks like, put it out there, start seeing what that looks like, and then we -- from there, we figure out where we go, and you know, we'll assess it on a regular basis with the Commission, if it's okay with you. Chair Sarnoff. How much are you --? Commissioner Suarez: Mr. Chairman. Chair Sarnoff. Go ahead. Commissioner Suarez: No. I completely in support of the fund, andl was -- when he first -- when the Vice Chairman first thought of it and brought it to our attention. I really believe we can get another 500,000 for that fund from the MPA (Miami Parking Authority), and we're bringing them back here to talk to them about their budget. The way it was explained to me in haste, of course, as we received the documents, was that we could get another 500. So we could double the size of the fund and have a million dollars available to deal with these very, very specific cases. Andl leave it to the Vice Chairman to -- and, you know, in conjunction with the Manager, to figure out specifically how we will implement the program. But I will be calling on the MPA to try to make up the other 500 -- you know, make another 500, double the size of the fund. Commissioner Dunn: Mr. Chairman. City ofMiami Page 29 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnofff. Commissioner Dunn. Commissioner Dunn: I, too, believe this would be at least a human side to what we have been doing. Andl want to commend you again for showing sensitivity. Andl know that tempers have flared, and probably understandably so, but as we have stated over continuously that this is not easy. It's not fun being here. I just say it real quick 'cause it is late. Many people who are being effective [sic] close to us, some even parishioners in my church andl have to look at them and it's not a good feeling. But at the same time, we had a job to do and our hands were, for lack of a better word, was tied. But I wanted to find out from the Manager -- I believe you previously mentioned something about a vacation drawdown. Is that something that could be an avenue that we could look at for the employees as well? Mr. Migoya: One of the things that we have thought -- remember, right now we're probably going to be in the eight and a half to nine million dollar range in one-time payouts for this year, which is substantially over the budget that we had for this year, which was $2 million. So for that reason, we actually estimated that we would have a similar number. Well, it's actually -- it's budgeted at $10 million for one-time payouts for next year. We will know more about that in the next 90 days. And typically, a lot of the retirements happen usually January 1 because that's the time that they can get the lump -sum payments without having the income from the future year. So definitely by January 1 we would know how many of the one-time pays are paid, maybe some earlier than that so we can -- might be able to make some of that money available, if we have room, to be able to allow the employees unusual time in which they can be paid back some of their earned vacations and/or sick days, depending on how we choose to do it from that perspective. So that's something that we could look at, and that would be a way to allow them to be paid some of the -- something they've already earned and at the same time, it's perhaps give them some disposable income to make up for the reductions that we have done. Commissioner Dunn: Okay. Chair Sarnofff. Is there anything else? All right. Mr. Migoya: May I -- I'm going to make a quick statement, ifI may. This budget -- I know that in the past, you've all -- (UNINTELLIGIBLE) not been in the past -- as part of you -- but this budget is not -- by today, if we pass it, is not the end of the budget but it's the beginning of the budget. Matter of fact, one of the conversations that I've heard rumored from time to time well, if we pass this budget, how quickly can we go over budget, and that is not the point. We have spent exhaustive hours not only -- many of you -- and obviously, I think you know championed by the Vice Chair Carollo spending as many hours as he has, but many of our people, andMirtha Dziedzic has really spent a lot of time with Jennifer and her entire budget team Saturday, Sundays, and very late into the night working through this entire time, as well as myself, but we've gone over and over with directors, two, three, four and five times with each director the budget, so we feel very comfortable with where we are with the budget. In addition to that, one of the things that we've agreed to do, which we're going to put even more teeth to the updates that you receive on a monthly basis -- remember, you receive on a monthly basis the projections of the actual financial expenses, as well as projected for the following fiscal year. We will also, as part of that, be reporting to you, which is already there, any surplus or deficits by department, from which each department head will have to report as to what -- why the deficit and how will they give back into balance and not really create any deficits. So we will able to report to you not only the projections as to how we're doing from a budget overall, but on a department -by -department basis, if we have any deficits, how we're going to cure this so that we don't allow these -- this budget to get out of hand and we're going to be able to maintain this budget. At the end of the day, we don't -- we can't afford to -- you know, we don't have the reserves we're used to, number one; and number two, the idea behind this is to have a balanced budget that we live with for the entire year. Andl think with the efforts that every one of us have done, I think we're going to be able to produce just that. City ofMiami Page 30 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff. Okay. Gentlemen, we had a motion and we had a second, as modified. Ms. Thompson: And ifI might request, Chair, wanting to make sure of the modifications because I have before me a draft resolution from this morning, but this will be further modified. Ms. Dziedzic: Correct. Ms. Thompson: Thank you. Chair Sarnoff. All right. All in favor, please say aye." The Commission (Collectively): Aye. Chair Sarnoff. All right, ifI could just do one point of privilege as the Chair. I want to say to the Mayor, you set a vision and you set a steady hand and you gave us what you thought was the right thing to do for the taxpayers, the citizens ofMiami andl think we just about did it. To the City Manager, I've never seen a man with more steady resolve, more steel in his eye, and more even-handed equally resolved, andl don't think this could have happened without you. And to my fellow Commissioners, I've been now -- this is going to be my fourth year on this Commission. I have never seen men with more integrity, men with better resolve and fortitude. I think what you went through was the most difficult budget cycle I've ever been through, and yet, it was not, to your credit, Mr. Manager, chaotic by any stretch of the imagination. I think the Mayor will remember last year's and that was very, very chaotic, and that's a tribute to you. Commissioner Dunn, there were two moments that I will always remember when I thought only it was a preacher that would get us through it. Commissioner Gort, you could find consensus in anything. Commissioner Suarez, you're like a rock; you're always there and you always know where you want to go. And Commissioner Carollo, I've never seen a man work so hard in all my life. Andl want to just say it's been my honor and pleasure to have served you this year, so thank you, gentlemen, very much. We have a motion to adjourn? Commissioner Suarez: So move. Commissioner Gort: So move. Vice Chair Carollo: Second. Chair Sarnoff. All right. All in favor, please say aye." The Commission (Collectively): Aye. BH.4 DISCUSSION ITEM 10-00935 Downtown DISCUSSION OF THE PROPOSED MILLAGE RATE AND FINAL BUDGET Development 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. City ofMiami Page 31 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 ACTIONS BY THE CITY COMMISSION: 1. AMEND THE BUDGET, IF NECESSARY 2. RECOMPUTE THE PROPOSED MILLAGE RATE, IF NECESSARY 3. ADOPT THE FINAL MILLAGE RATE 4. ADOPT THE AMENDED FINAL 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 We'll go to BH.4. You're recognized for the record. Alyce Robertson: Alyce Robertson, executive director of the Miami Downtown Development Authority. The items before you is a discussion of the proposed millage rate and the tentative budget for the Miami Downtown Development Authority. There's a decrease over the rollback rate of 9.42 percent. The City Commission at this time listens and responds to citizens' comment regarding the proposed millage rate decrease and explains the reasons for the decrease over the rollback rate. The actions by the City Commission are to amend the budget, if necessary, recompute the proposed millage rate, if necessary, adopt a tentative millage rate, and adopt a tentative budget. The budget that's before you represents a decrease in the overall property, the taxable value of property in the downtown district of 11 percent. We also -- as of -- have been working with our board to get ready for the decrease in taxable value as well as possible decreases in future years. So the budget that's before you represents a budgeting rather than at the 95 percent that is allowed under state law but at 80 percent. That means that there'll be 3.9 million available for fiscal year '10/'11. The operating budget of 6.5 million represents a decrease from last year's budget coincidentally of also 11 percent. In the meantime, we are actually looking at the core street projects, the Downtown Ambassadors, the Downtown Enhancement Team, and our -- have actually put $800, 000 into public realm improvements, 570,000 for Ambassadors and 405,000 for the Downtown Enhancement Team. We've increased our contingencies, putting in a contingency for property valuation of $700, 000 so that in the event that there are refunds that come and people challenge their taxes, that we would have an additional cushion for that reduction. We have -- also in addition, we have cut our administrative positions by 52 percent by moving those into street services and direct services to the stakeholders of the DDA (Downtown Development Authority) area. We also have a 21 percent decrease in our salary dollars since 2008. So with that, I would turn it over to Neisen Kasdin, vice chair. Neisen Kasdin: Good evening, Mr. Chair, members of the Commission. Neisen Kasdin, vice chair of the Downtown Development Authority, with offices at 1 Southwest 3rd Street, andl would also let you know I am a property owner downtown as well. I would just like to briefly add to what Alyce has said. And first, I would also like to thank you for your hard work on behalf of this City. You're making some very tough decisions. The press focuses more on the City ofMiami than any city in South Florida because you're the largest city. But I'm a student of local government andl think that you are tackling these issues in a more serious way than -- fundamentally than any city that I have observed in South Florida. You're to be commended for that. With respect to the DDA, I would point out that since in the last few years -- and you'll see the statistics -- that the DDA has reduced salary and fringe benefits and put in a significantly larger percentage of its actual dollars in programs on the street. I would tell you from the point and time that I got on the board a little less than four years ago, among the changes we made is our current executive director, who's now been with us for two and a half years or so, came in at a package of over 20 percent less in salary and in benefits than her predecessor. So before the financial crisis struck, the DDA board took very seriously its role to reign in administrative City ofMiami Page 32 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 expenses and salaries and to put that money out into programs in the street that would benefit this community. I would tell you that our board views the DDA as almost -- as it would a private business. And although we think that Alyce and her staff many of whom are new, have done an outstanding job with great energy and total dedication, we still treat this as a private business and make sure that their benefits, their pay is commensurate with what people in the private sector would get and are not inflated. And so as a result, we have actually decreased those costs across-the-board and at the highest level. So we would request that you -- and put much more money on the street. There is of course more that we can do and will do. Our board has been, I think, ever vigilant at constantly looking at ways to increase efficiency and productivity. That is one of the mandates as well that constantly comes from our chair. We would request that you approve the millage and then, at the next item, the budget as well. We think we have been conservative. We have been prudent in keeping the costs down as much as possible. We have not of course increased the millage rate and, of course, that it results in a 14 percent reduction in taxes district -wide because of the reduction in property values. Thank you so much. Thank you for your interest and support of the DDA over the past year. Chair Sarnofff. Thank you, Mr. Mayor [sic]. You're recognized for the record. Alvin West: My name is Alvin West. I'm the treasurer of the DDA. Andl come in support of the budget that we have before you today. I would like to tell you that the budget that you have here today is to make downtown more productive, to promote downtown to be the world -class city that we're all wanting it to be. The DDA is managed by a professional staff. The board of the DDA, which is made up of business owners, property owners of downtown, have elected to give us a vision where we want to grow the downtown so that downtown will contribute more to the City of Miami. The board is a 15-member board. Andl can tell you, to a person, each member of the board voted to approve this budget to recommend it to you, the Commission. To look back over the last several years, we see the residences of downtown as a result of the work that the DDA has done. The residents' numbers have grown some 20,000 to now 70,000. We anticipate by 2014 that number to be around 85,000 people. Likewise, we've seen the voter rolls increase 52 percent just in the last seven -- not seven, but in the last three years, since 2007 to 2010, so downtown is growing. And we ask you to approve this budget to help us with making downtown the world -class city that it is supposed to be. We submitted to you a document sometime ago which has in it some key statistics that I would like to take you through. One is the employee count. As Neisen just mentioned to you, the vision of the DDA back in 2008 was to make the organization lean and mean and put money on the street, not in administration. We reduced our employee count 14.6 percent. Likewise, you've also heard that we wanted to take people out of the office and put them -- put those dollars to work on the street. We've shifted 52 percent of the administrative costs of the organization out of the office and onto the street. Our salary and fringe benefit expenditures has gone down 21 percent since 2008. I can tell you that besides the salary cuts that Mr. Kasdin mentioned a minute ago, we have also had each employee to pick up a larger share of their health costs, so this is the result of the organization, staff board working together, salaries andfringe benefits down 21 percent. There's another slide that think you will find quite interesting. Chair Sarnofff. You know, I'm going to -- I think the -- we're going to cut this a little short, if you don't mind -- Mr. West: Okay. Chair Sarnofff. -- Mr. West? And I'd like to hear from Mr. Alonso and then we'll bring -- Mr. West: That's fine. Thank you. Chair Sarnofff. Do you have a watch on? You're recognized for the record, Mr. Alonso. City ofMiami Page 33 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Tony Alonso: My name is Tony Alonso. I'm president of La Epoca Department store. I'm also a member of the board and I'm also a member of the finance committee of Downtown Development Authority board. But I'm here both mainly as a business owner, andl've been downtown for 45 years, andl've been a property owner for about 35 years, so I have paid this half -mill tax from this budget for many, many years. Andl have to tell you that, in the last two, three years, four years -- less than four years that I've been around, in my opinion this is one of the best DDAs that have seen. I support this budget and as a property owner, I'm very happy to see all the dollars go on the street and the services and how we're setting the basis to continue to make downtown grow to its potential so that it can continue to contribute to the City ofMiami, andl urge you to support the passage of the budget. So thank you. Chair Sarnofff. Thank you, Mr. Alonso. Anybody know La Epoca by the way? It's a great department store. He doesn't like that when we say this on the air, but Channel 77, y'all have to go down to La Epoca. It's a great store. Unidentified Speaker: Especially on Tuesday. Chair Sarnofff. Especially on Tuesday, Mojito Tuesday. Commissioner Gort: Mr. Chairman. Chair Sarnofff. Yes, sir. Commissioner Gort: I think it's important for the general public to understand that this is an additional tax that property owner voted to impose on yourself. I think it's very important for people to understand that. This is not the general funds tax. This is -- does not have anything to do with our tax (UNINTELLIGIBLE). This is an additional tax that the property owner within that district, Brickell, Central Business District, and (UNINTELLIGIBLE) imposed on themself. Thank you. Chair Sarnofff. Thank you. You're recognized. Randy Olen: My name is Randy Olen, andl have an office at 1395 Brickell Avenue. I am the 2009 and 2010 president of Brickell Area Association. Andl am here merely to support the DDA and speak in favor of their budget. They've done an outstanding job. And as Mr. Alonso mentioned, for the time that I've been involved, which is about seven years, I've never seen the energy and enthusiasm at DDA and -- at a time when there are less employees. So thank you, andl speak for the Brickell Area Association in support. Chair Sarnofff. Thank you for coming. You're recognized for the record. Barbara Miller Bowdry: Thank you. I am Barbara Miller Bowdry, andl am here this evening to ask you to support the proposed budget of the Downtown Development Authority. I have been a resident of downtown Miami for 25 years. Commissioner Gort, it's been my privilege to have worked with you for at least a decade on issues concerning achieving a vital downtown. During the last four years, as has been alluded to, we have at last seen a sustained momentum in developing downtown Miami and this is due, in large measure, to the outstanding work that is being performed by the 17-member staff of the DDA. This talented group of 17 people is providing a great assistance to the City ofMiami at a time when we're facing great budget challenges. Let me share three. First of all, the Downtown Miami Ambassador program, which has put individuals on the street to be the eyes and ears for the merchants and our visitors is of utmost help to the City ofMiami Police Department, which we all know is not adequately funded. They are a great asset. Secondly, they have established the Downtown Miami Enhancement program, which, as you know, enables the formerly homeless to become productive members of the society and maintain their dignity. This is a great assistance to the Public Works City ofMiami Page 34 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Department, which is not able to do this work at that level. Lastly, they have assisted the Parks and Recreation Department through the development of I believe, three pocket parks which add a wonderful, wonderful, visible attribute to our City. And of course, there is much work that remains to be done. They continue to do the main work of a development authority, which is to attract businesses and residents. They are doing that. But that branding needs to continue. I think perhaps all of you, like me, I was quite astounded to hear LeBron James when he made his announcement of where he was going to play basketball. And he said, I've made my decision; I'm going South Beach. No. Mr. James isn't going South Beach. He's going to the City of Miami, and that's why we need the Development Authority to be able to have all the resources it needs to continue that important branding. Thank you very much for hearing me. Chair Sarnoff Thank you. Thank you. All right, so BH.4 was a discussion item. I would take it that BH.5 and BH.6, that public hearing would suffice? You all would not need to come back up. So let me see ifI can get a motion for -- BH.5 ORDINANCE Second 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. 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 Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II 13205 Chair Sarnoff Well, let's open up BH.5. Who want -- would you read that into the record? City ofMiami Page 35 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 The Ordinance was read by title into the public record by Assistant City Attorney Veronica Xiques. Chair Sarnoff All right. Anybody that feels the need to speak on BH.5, please step up. Hearing none, seeing none, the public hearing is closed. Can I get a motion? Vice Chair Carollo: So move. Chair Sarnoff Motion by the Vice Chair. Commissioner Gort: Second. Chair Sarnoff Second by Commissioner Gort. Any discussion, gentlemen? Madam City Attorney, I hate to do it to you again, butt guess it's an ordinance. The Ordinance was read by title into the public record by Assistant City Attorney Veronica Xiques. Chair Sarnoff Madam Clerk. Priscilla A. Thompson (City Clerk): Your roll call. A roll call was taken, the result of which is stated above. Ms. Thompson: Your ordinance has been adopted on second reading, 5-0. BH.6 RESOLUTION 10-00937 Downtown A RESOLUTION OF THE MIAMI CITY COMMISSION MAKING Development APPROPRIATIONS FROM THE DOWNTOWN DEVELOPMENT DISTRICT AD Authority VALOREM TAX LEVY AND OTHER MISCELLANEOUS INCOME, FOR THE DOWNTOWN DEVELOPMENT AUTHORITY ("DDA") OF THE CITY OF MIAMI, FLORIDA ("CITY"), FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 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. 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 Motion by Commissioner Gort, seconded by Vice Chairman Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Sarnoff, Carollo and Dunn II Absent: 2 - Commissioner(s) Gort and Suarez R-10-0424 Chair Sarnoff All right, BH.6. I just need something put on the record. City ofMiami Page 36 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Alyce Robertson: This is a resolution -- an appropriations resolution for the Miami DDA (Downtown Development Authority) establishing the budget for the fiscal year 2010-2011. Chair Sarnofff. All right. Let me open up a public hearing. Anyone from the public wishing to be heard on BH. 6, please step up. Hearing none, seeing none, coming back to the Commission. Is there a motion? Commissioner Gort: Move it. Chair Sarnofff. Motion by Commissioner Gort -- Vice Chair Carollo: Second for discussion. Chair Sarnofff. -- second by Commissioner -- by the Vice Chair. Vice Chair is recognized. Vice Chair Carollo: Thank you, Mr. Chairman. First of all, I'd like to begin by saying that, you know, much has been mentioned about LeBron James. And actually, when he made his announcement, I actually was in downtown Miami with a good friend of mine who happens to be a DDA board member. So when I started asking questions now, I'm actually just doing my due diligence and more than anything, it's because I actually want more fundings [sic] to go to the programs, more funding to go to downtown Miami to make it an even better downtown Miami. With all due respect to the Chairman and the other 14 members that approved this budget, I'm just going to say a few things and maybe have some questions because ifI wouldn't, I wouldn't have done my due diligence. And maybe not even for this budget but for the future, they could look at some of this and maybe next year when they're approving their budget, some changes may happen or maybe even this time. I don't know. I truly do believe the salaries are still too high. I don't even know if all these positions that you have are necessary or even needed, you know, so I ask that for next year or even before next year that the board actually request all the salaries and all the positions that you have in the DDA. I'm not going to go off and name them all because I would think that it's somewhat embarrassing, so I'm not going to name them all. But I would ask that the board members do go through that list of all the positions and are they really necessary, not to mention what they make. The majority of the people, almost all of them, make a very, very good salary. I'll leave it at that. Second thing want to mention, really caught my eye, $263,000 a year in rent. That's $22,000 a month. I mean, I think that's outrageous. I don't know what you can do about it. I'm just telling you, I wouldn't be doing my due diligence if I wouldn't say that. Chair Sarnofff. Mr. Vice Chair, maybe I can let the Manager respond. Carlos A. Migoya (City Manager): We -- Mr. Chair, Mr. Vice Chair, we actually looked at the rent and there's nothing we can do about it right now. The one thing that we have discussed is the possibility of having some of the other agencies of the City find a way to maybe share some of the space so that we can basically reduce the allocation by a different institution, but at the end of the day, this is actually a rent that we actually had attorneys look at this and rule it and basically there's -- we can't really get out of that. That's a lease that's got several years to go at this point, so the only way to do it is to have other agencies and basically absorb -- Chair Sarnofff. Could you -- Mr. Migoya: -- some of rental -- Chair Sarnofff. -- maybe explain to the Vice Chair how that rent came about? Remember how there was a renewal? Mr. Migoya: There was a renewal. I was around when the first one was done, which was City ofMiami Page 37 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 substantially less and it was much smaller space. The renewal was done and it was done at a time in which it was the heyday of the downtown commercial property and there was -- it did include a lot of the lease home improvements or tenant improvements at the time, so this was done with the square footage -- and it included TI with an escalating cost, but of course, things have -- are not looking the same now as they did when this thing was done several years ago, so that's why -- that's how we got stuck with that long-term rent. Vice Chair Carollo: Thank you, Mr. Chairman. And again, you know, I'm just -- my intention is really for us to be able to put more monies out there in program services. It's not to point out anything. I'm actually not going to nitpick the budget, but something like this has to be pointed out. Another thing that I saw that is really a concern to me is that you're drawing down on your fund balance. In other words, you're actually running on a deficit. Looking at your estimated revenue, you're going to carry funds from prior years $2.1 million, so that's a concern that -- I mean, you're going to balance your budget, but it definitely needs to be looked at. Mr. Robertson: HI may, Mr. Commissioner? Vice Chair Carollo: Sure. Mr. Robertson: When I came to the DDA in 2008, I came; there was a $4 million fund balance at the time. The direction I got from the board was to spend down that fund balance and get it out onto the street. And so what you will see is significant input into street -level types of things, urban design, infrastructure improvements, way finding, other kinds of things that are one-time capital expenditures and not into the operating funds of the DDA. So it's to basically get out there and do our own mini stimulus to get the dollars out onto the street and make it look better. Vice Chair Carollo: I understand that, but -- Alvin West: This -- Mr. Commissioner -- Alvin West again -- some years ago we undertook a program where we budgeted to fund a reserve so that we could put monies out on the street and the dollars -- all of the dollars that we have, whether they're in reserve or whether they're operating dollars, we have major plans for spending those dollars. As an example, we have worked with the City, the County, FDOT (Florida Department of Transportation) to help to beautin, the Brickell area. That was, I think, a $1.4 million project. That was planned over two to three years. And so those dollars that we had in reserve were set aside to be drawn down to help with projects like that, so all of the dollars that we have -- and by the way, even after this budget that we're going -- we hope that you will approve, we will have, if we don't spend the $700,000 contingency -- Vice Chair Carollo: One point seven. Mr. West: Yeah. Well, we would have the 1.7, plus the 700 if we don't spend the 700, the contingency. Vice Chair Carollo: Right. Mr. West: So we'll have funds available. And again, we're budgeting at 80 percent, and our tradition has been -- even though I think the state law says budget at 95, we've always budgeted at 88 to ensure that we would have dollars to put on the street. Vice Chair Carollo: However, this year you actually did to 80 percent and -- right. Mr. West: That's -- Vice Chair Carollo: That was a direction of your board to do 80 percent. City ofMiami Page 38 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. West: The board thought it was best that we -- because there are a lot of unknowns. Vice Chair Carollo: I understand. Mr. West: And so to be conservative and to be prudent, the board worked with the finance committee and we all agreed that it was best to budget 80 percent. Vice Chair Carollo: I'm just -- listen, I'm just pointing it out because you are running this year as a deficit, andl guess it as a deficit, it sounds, you know, like a bad word. But the bottom line is you are going to expense [sic] much more than the monies that you're bringing in. You're going to use monies from prior years, andl understand. But at the same time, you start off with a fund balance of 4.1 or so and you're going to bring it down potentially to like 1.7 in one year, so -- Neisen Kasdin: Commissioner, may I also --? Neisen Kasdin Vice Chair Carollo: Sure. Mr. Kasdin: -- address that point? Because the board and the staff has always viewed -- has viewed the budgeting as we must disregard the fund balance and budget only based on what our ad valorem revenues are each year. Vice Chair Carollo: Okay. Mr. Kasdin: A policy decision was made a few years ago that the fund balance, the jumbo fund as it's called, which was four million or so dollars, that we wanted to deploy that in physical improvements to downtown now when it would have maximum impact. So we have always -- we do not view that as subsidizing our budget. In fact, what has happened in the last two to -- two years as you've seen by the information presented by Al, we've reduced administrative expenses by 20 percent, so we do not at all consider that fund balance as a subsidy of operating. In fact, notwithstanding the existence of the fund balance, we've greatly slashed operating expenses and administrative expenses 'cause we don't view our budget really as including that fund balance. We view our budget as being determined by the annual ad valorem revenues and some other, perhaps, small additional revenues we receive. So be assured that -- and -- but by the same token, the policy decision was made; Brickell Avenue needed improvements, the expressway ramps needed improvements. There were a myriad of projects that were needed to perk up downtown now or when the tensions being focused on downtown, and that's where that money's going. Vice Chair Carollo: Thank you. I think you understand what I'm saying when -- as far as using carry-over monies. I understand it was a policy decision. You know, I just -- I have to bring it to your attention. Mr. Kasdin: Might make one more point, Commissioner? Vice Chair Carollo: Chairman. Chair Sarnoff. Yeah, go ahead. This is it, though. Mr. Kasdin: One of the things we also undertook to begin doing a couple of years ago was to start leveraging dollars and that is, we wanted to work with our partners downtown to generate additional dollars. Andl can tell you that over the last 16 to 18 months anyway, we have generated approximately $23 million to help with the funding of downtown and that's a leverage ratio of 12 to 1. So for every dollar that the DDA puts in a project and put on the street City ofMiami Page 39 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 downtown, we have partners who are working with us and see the vision and the mission that we have and have embraced that and also have put dollars into those projects. Vice Chair Carollo: Since you mentioned that, when you say have put monies into those projects, you mean they've actually paid for some of those projects or are they contributing to the DDA? Ms. Robertson: IfI could give you an example. For example, the Brickell Avenue project is a Florida Department of Transportation Roadway, and they're going to be paying for the stormwater improvements and other improvements to Brickell Avenue. What we're paying for are crosswalks, decorative crosswalks that'll give Brickell Avenue a distinct flavor and identity. And so we designed those and we put that money forward to FDOT. When that comes forward, we'll have those crosswalks in place. We also did the landscaping. So even though we're not doing the main project, we are enhancing -- doing enhancements that are associated with that. We have a proposal also at the County for South Miami Avenue in which the County would do their work that they're supposed to do on South Miami Avenue and we would do the decorative lighting and other kinds of things that go along with that. So that's the kind of leverage dollars that we're talking about. Vice Chair Carollo: Question, who maintains those crosswalks? Ms. Robertson: We would. Vice Chair Carollo: So DDA actually maintains those crosswalks? Ms. Robertson: Right. Vice Chair Carollo: Okay. The last thing that I wanted to mention -- andl see the Mayor stepped out 'cause he's the one who mentioned it to me -- something about $100, 000 to Gusman Center. Do you know anything about that? Ms. Robertson: Yeah. We spoke last week with the Mayor, and he asked us if there were any money available. We have budgeted money for historic landmarks that includes the Freedom Tower and Gusman. And as far as how that would be used or whatever, we still have to work that out with Gusman. I would see it as a direct programmatic kind of a thing where we would be looking for programming dollars to make sure that the Gusman is lit up for more nights and so not into a capital account but more like a programmatic kind of a thing. Vice Chair Carollo: And question, that will come out of what, public realm improvements? Ms. Robertson: Yes. Vice Chair Carollo: You're budgeted for 800, 000. So out of those 800, 000, you're saying that at least 100,000 will go to the Gusman? Ms. Robertson: That's the intention, yes. But, you know, still, this has not gotten an approval on the individual projects because there's no agreement with Gusman or anything as of yet. Vice Chair Carollo: But it will come out of the public realm improvements, which you've budgeted 800, 000 for? Ms. Robertson: Right. Vice Chair Carollo: Okay. Again, I -- you know, I'm not going to have any more questions. Again, the salaries are one that, you know -- I said it so many times already -- are real high. I'll City ofMiami Page 40 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 yield to the Chairman. I know he's the Chairman of this board, the 14 members that voted for this budget, you know. I would approve it this year; just, you know, for the next year, I'm going to look at it a little bit more and study it somewhat. And you know, if -- you know, like you said, your board members have been looking at this budget. If -- take a look at the salaries a little bit more and just -- you know, if you go down and fund balance the 1.7, just, you know, be careful next year because I don't know where ad valorems are going to be, but you know, if your expenses stay the same or so forth, we could get into trouble. So that's it. Thank you. Unidentified Speaker: Thankyou. Chair Sarnoff And Mr. Vice Chair, your observations on the rent are very -- right on target and, unfortunately, I was, I think, way before a lot of our time. Ms. Robertson: But the view is nice. Chair Sarnoff But the view is nice, that's true. Andl think you're there till '014 [sic], if I'm not mistaken? Ms. Robertson: Right. Chair Sarnoff So -- all right, we have -- it's an ordinance, Madam City Attorney. Veronica Xiques (Assistant City Attorney): This is actually a resolution. Chair Sarnoff A resolution, I apologize. You're right. All in favor, please say aye." The Commission (Collectively): Aye. Chair Sarnoff All right, that's BH.6. Unidentified Speaker: Thankyou. Chair Sarnoff Now we're up to BH (Budget Hearing) -- Ms. Robertson: Thankyou: Chair Sarnoff Thank you. Thank you for coming. By the way, thank you for coming from the DDA because -- and everybody from downtown. I know it's -- I mean, not late yet, but it'll get there. BH.7 RESOLUTION 10-01025 Civilian Investigative A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Panel ATTACHMENT(S), APPROVING THE TOTAL ANNUAL BUDGET FOR THE CIVILIAN INVESTIGATIVE PANEL, IN THE AMOUNT OF $464,000, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011. City ofMiami Page 41 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 10-01025 CIP Budget Proposal Memos.pdf 10-01025 CIP Pre Legislation.pdf 10-01025 CIP Table of Organization.pdf 10-01025 CIP Legislation.pdf 10-01025-CIP Exhibit-SUB.pdf 10-01025-Submittal-Memo-CIP-Revised City of Miami Civilian Investigative Panel 2010-2011 Budc 10-01025-Submittal-CIP Table of Organization.pdf 10-01025-Submittal-Civilian Inv. Panel (CIP) Proposed FY 2011 Detailed Salaries & Operating.pdf 10-01025-Submittal-CIP Pre Legislation.pdf Motion by Commissioner Dunn II, seconded by Vice Chairman Carollo, 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-10-0425 Chair Sarnoft BH.7, Civilian Investigative Panel. You're recognized for the record. Janet McAliley: Janet McAliley, 3 Grove Isle Drive, City ofMiami. I am a member of the Civilian Investigative Panel and speaking for the Panel. And with me tonight is Carol Abia, our investigator/acting director of the CIP (Civilian Investigative Panel) and a unbelievably competent and dedicated employee. This substitute item for BH.7 is a resolution of the Miami City Commission, with attachments, approving the total annual budget for the Civilian Investigative Panel in the amount $464, 000 for the fiscal year commencing October 1, 2010 and ending September 30, 2011. Chair Sarnoff What -- we have listed some other number. We have a 440, 000. Ms. McAliley: I -- Commissioner Dunn: They just -- we were just given -- Ms. McAliley: Yes. And -- Commissioner Dunn: -- an amendment. Ms. McAliley: -- Ms. Abia will explain that too. Carol Abia: This is a substituted item. We're requesting $464,000, which is no change from fiscal year 2010. Carlos A. Migoya (City Manager): We had -- well, ifI may, Mr. Chair. We -- last year we had budgeted them at 464. As part of our 5 percent reduction initiative, we had looked at going to 440. Because they are a charter office and everything else is it impacting, the decision and recommendation from Administration was to leave them at the 464. Chair Sarnoff And you budgeted for that? Mr. Migoya: Yes, sir, we did. Vice Chair Carollo: In the NDA (NondepartmentalAccount). Mr. Migoya: Correct. Vice Chair Carollo: In the NDA. City ofMiami Page 42 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff All right. Let me open up a public hearing. Anyone from the public wishing to be heard on BH.7, please step up. BH.7. Hearing none, seeing none, coming back to the Commission. Commissioner Dunn: Mr. Chairman. Chair Sarnoff Yes, sir. Commissioner Dunn: I'd like to move this item. Chair Sarnoff Commissioner Dunn's made a motion. 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: Thank you. Yes. Actually, it shows in the NDA for 464, so I was going to bring that -- we will have to amend and I'm glad that this was passed out. I know I have the floor, but in a way, it's a point of privilege with my next question. Why were your audited financial statements not issued on time and presented to the City? Ms. Abia: Our auditors started their audit on a timely basis. They were, before the end of the fiscal year, through with the audit as far as information that was required of the CIP. It was my understanding from the auditors that there was some delay in getting information from the Finance Department. They are hoping that they can, in this coming year, meet with the Finance Department so that it can coordinate the activities and coordinate the exchange of information so as to avoid the delay that occurred. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Yeah, you're recognized. Keep going. Vice Chair Carollo: Mr. Manager, do you think we could have someone from the Finance Department come and address this 'cause this is something that I have mentioned and mentioned and mentioned? And for the first time, we have CIP in front of us in order to address this issue. And l just -- and my intention, once again, is that it doesn't be a recurring event and that we get our audited financial statements on time -- issued on time this year. Diana Gomez: Diana Gomez, Finance director. I guess I'm not sure what exact information was not coordinated. We had sent information to all the component units early in the year requesting that all the information be received by February 1. There were some journal entries, I believe, that were identified as part of the audit. It was identified during the course of the audit, so I'm not sure if that's what is being referenced. Ms. Abia: I think that was among the issues. At some point the auditors advised that they needed the closeout information. They did not receive notification of the readiness of that information again. It is my understanding that the auditors met with the Commissioners or some Commissioners to explain the full extent of what caused that delay, but certainly, the CIP did everything possible to get the auditors in on time. They were there on time. They started our audit on mid October. Vice Chair Carollo: By any chance, did you hear the cries from this Commission asking for CIP to come before us and the auditors to come before us and give us some type of explanation? City ofMiami Page 43 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Ms. Abia: We were advised that a report was required and a report was submitted. We were not aware that we were expected to appear before the Commission, but we did appear on the second -- I think there was another date that was assigned for us to appear. The auditor did appear. Staff was here. And I'm not sure how the issue was resolved then. I don't recall. But certainly, we were in appearance to respond. Vice Chair Carollo: I'm not here to embarrass anyone or to point fingers. However, in order to correct the problem, we need to know what the problem was, so that's why I'm asking these problems. I mean, I'm sorry, that's why I'm asking these questions because I want to make sure that your audited financial statements are issued on time, that the City of Miami's auditors have that so they could incorporate it into our audit, and we don't have exactly what happened this year. Ms. Abia: We have also notified our auditors at the end of August that we do expect that the -- whatever information is needed to initiate that audit in October be done and we're in communication with the auditors so that that will be done on a timely basis. Vice Chair Carollo: Thank you. And Ms. Gomez. Ms. Gomez: The City is not planning to close its book until early November, so if their auditors start in November, that may lead to some of the confusion if they start with a trial balance that's not officially closed out and then we book our entries for yearend and then if something affects their books, then they're going to be working from two different places and then that reconciliation after the fact may actually cause a problem. So we're not planning to close our books per the notices that I've been sending out till think it's November 12, I want to say. I'm not sure that exact date off the top of my head right now. Vice Chair Carollo: Why so long? Ms. Gomez: It takes us -- because we need to get the information from all the departments. As you understand, we are very decentralized and all the departments need to submit all their journal entries, all their accruals. Everything needs to be -- Vice Chair Carollo: A month and a half, though? Ms. Gomez: Yes. It takes time. I would love to do it quicker than that, but I can't get that information from all the departments. Vice Chair Carollo: That was one of the findings, correct, as far as the accruals from the departments? Ms. Gomez: Right, that I'm not getting them all timely, so I allow until October 14 to get that information, and then we have to go through our closing process in booking everything. We have to also send back reports to the departments, which we plan to do on the end of October in order for them to review to make sure there's nothing that's missing, and then give them another chance to review it before we actually physically close. So we do a soft close. It's scheduled for October 29 or 30 and then the final close two weeks after that in early November. So if they start with a trial balance too soon, it will jeopardize because they will work -- their auditors will work towards a number that may not be the correct ending number of the City's books. So I don't know if that's some of the coordination, but we need to know that -- they need to know that they should start with a closed set of books as opposed to one set of books that will then may change and then their auditors may not know about it or -- Vice Chair Carollo: Is it possible that after this meeting and obviously not -- because I have a feeling it's going to be in the wee morning hours, so I don't mean right after this meeting, but City ofMiami Page 44 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 some time tomorrow or the next date you could get together with them to make sure that we're all on the same page and all the financial statements are issued on time? Ms. Gomez: We can -- yes. We always do reach out to our component units. I have no problem doing that and making sure that they understand the closing schedule and when everything's going to be available. But until we close, there's not much more that can be done. Vice Chair Carollo: Well, all know is that this year we were late. There is speculations why. There is whether this, the SEC (Securities and Exchange Commission), so forth and so on, and then all we had to do was wait for our audited financial statements and there it is. They exactly said why they were late. And there wasn't a rebuttal by the City, so obviously, that had to be correct. And all I'm saying is that I'm not here to embarrass anyone. I'm not here to point fingers. All I'm saying is that at least this Commissioner is not going to put up with our financial statements not being issued on time. Okay. Ms. Abia: I'd just like to say that this is the reason the auditors have asked for the meeting, and I'm sure that Ms. Gomez and myself can coordinate that so that we can have the auditors in on whatever meetings are being set up. Vice Chair Carollo: Thank you, ma'am. Ms. Gomez: Absolutely. Vice Chair Carollo: Thank you, Ms. Gomez. Commissioner Gort: Mr. Chairman. Chair Sarnoff You're recognized, Commissioner Gort. Commissioner Gort: Let me ask a question. My understanding is all the financial transactions of this is done through the -- through our central office, am I correct? I mean, they don't have their own banking account or checking account. Ms. Gomez: We do do the bookkeeping or accounting for them, so all the transactions that are incurred by them, they submit to us and we process it. Commissioner Gort: So this whole process and our -- Ms. Gomez: Right. They -- Commissioner Gort: -- own Finance Department, the auditors of -- do the auditors of the Finance Department also do theirs, right? They don't have an independent auditors -- Ms. Gomez: They do -- Commissioner Gort: -- (UNINTET,TIGIBT,F) they do -- Ms. Gomez: -- have a separate set of auditors. Commissioner Gort: -- they have a separate -- Ms. Gomez: That's correct. Commissioner Gort: Okay. City ofMiami Page 45 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Ms. Gomez: Because they are a separate entity. They are -- we just do the bookkeeping for them. We are their fiduciaries, so we do their bookkeeping for them, but they do -- they are a separate entity and we provide them those trial balances for them to be able to start the work. And when their auditors require copies of checks and supporting documentation, we can provide that information. It's provided through the Finance Department. Commissioner Gort: Okay. Thank you. Ms. Abia: May I add. We maintain our records so if we're doing a comparison with the information that we're getting -from Finance. Chair Sarnoff Commissioner -- Vice Chair. Sorry. Vice Chair Carollo: Thank you. To continue, but on a separate subject -- and thank you for your answers with regard to the audits, andl expect that they will be on time this year. With that said, the other thing thatl wanted to mention was if you could please keep us abreast of your rent expense. I know you're trying to negotiate, but as you know, it's through the roof and that's another one that -- I mean, the money that you're paying for three or four employees and maybe a conference room is through the roof. So if you could keep us abreast of the negotiations that it appears to me that you're doing and see where we're at. Ms. McAliley: Commissioner Carollo, we have moved to the Artime Center, but we are still being charged the rent for the offices we previously had at 155 South Miami Avenue. It is my understanding that our Legal Department is trying to negotiate this issue with the landlord of the building, but we are not in that building any longer. We're at the Artime Center. Vice Chair Carollo: Okay, so you're not in the building, but you're still paying the rent? Ms. McAliley: That is correct. That is true. Vice Chair Carollo: That -- is this --? Ms. McAliley: Through the Legal Department of the City of Miami. Vice Chair Carollo: That's even worse now. Ms. McAliley: We think so too. Vice Chair Carollo: That's even worse now. So you're not even obtaining [sic] the space. Ms. McAliley: That's right. Vice Chair Carollo: That's even worse. I mean, again, keep us abreast of it because I see you here, you know, budgeted for $108,900 for the year. That's actually an increase of 19 percent from last year, so keep us abreast. I read, you know, that you're trying to negotiate or so forth, but -- I mean -- Ms. Abia: That is correct. The $109,000 there is for the -- any funds that will go towards the settlements, so we're not actually making the payments to the landlord. What we're doing -- Commissioner Gort: They created a reserve. Ms. Abia: -- is budgeting for the settlement. Vice Chair Carollo: Well, I just -- you know, reading your budget, I just -- again, I just read the City ofMiami Page 46 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 budget. I just read what is there. I don't know if, you know -- Mr. Migoya: Mr. Vice Chair. Vice Chair Carollo: They say how you bury things and so forth. I see -- Mr. Migoya: We have a landlord there that is -- we've had issues with in the past. I'd rather, if you don't mind -- the fact that, yes, we are blackout of the space and we're trying to negotiate with him, I'd rather not go into those details now, if you don't mind? Vice Chair Carollo: That's fair enough. Mr. Migoya: Thank you. Vice Chair Carollo: That's all I have, Mr. Chairman. Commissioner Dunn: Mr. Chairman. Chair Sarnoff. You're recognized, Commissioner Dunn. Commissioner Dunn: I do want to again thank my colleague for bringing up the issues relative to fiscal affairs. That is one of the things I -- if I could quickly give -- we know that you, as Chair and Commissioner Sarnoff bring in the legal aspects and, of course, we have the fiscal Commissioner Gort and, of course, one and only Vice Chairman Carollo. I want to bring in some social and historical aspects to this particular issue. From a historical standpoint, I served on the CIP. And, of course, without trying to be biased in this situation, this was a referendum. As the Mayor would point out, he was a part of it, as well as Commissioner Willy Gort. Because there was issues not just germane -- that were affecting District 5, but in fact all of the City of Miami. We had the issue in terms of the Elian Gonzalez situation and there was a issue affecting the Hispanic community and the City of Miami as well. And one of the things I think from a historical standpoint, the CIP has been cut approximately 64 percent the past three years. I believe those -- are those figures -- which is -- Ms. McAliley: Sixty-two percent. Commissioner Dunn: Sixty-two. Well, close enough, for government work. It certainly has operated on skin and bones. Andl believe, in light of some of the issues that our City is confronting right now, any further cuts -- andl don't want to beat a horse too much, you know, or snatch defeat out of the mouth of victory -- out of the jaws of victory, but -- or what appears to be victory, but I believe that we should support the budget as been amended by the handout of the $464, 000 so that -- andl do believe that the Mayor is leading in this endeavor, andl certainly, wholeheartedly support it in District 5 in light of some of the issues that we have confronting the City right now as it relates to police and City -- police and civilians. So I think it's an opportunity to show continued transparency as well as an openness to the citizens. So that's my piece on it. So that's why I support it. Chair Sarnoff. Commissioner Gort, you wanted to -- no. I'd like to say a few things. We have had a pretty tortured history, myself and you guys. When you wanted to expand your lease and you wanted to increase your lease, I warned you that this day was going to come. I voted against that, and you said this day would not come, but the day did come, and now the citizens are responsible, possibly, for the lease payment. And I'm going to support you on this, but think well -intended citizens need to be well intended with their finances and their budgetary requests as well. It wasn't like you didn't have a Commissioner warning you not to go into the new lease premises, not to expand your offices. I don't -- I think you thought I was a three -headed dragon when I said that and how unfair it was for me or from me, and I guess I saw this coming a lot City ofMiami Page 47 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.8 10-01029 Coconut Grove Business Improvement District (BID) Board sooner than others did, andl thought you would be one of the first people hit and you were. Some other boards were hit as well. Andl think your mission is good, butl think you have to be fiscally responsible. I know you're at your wits' end right now 'cause I now you're -- as you would say, there's not much paint left on the vehicle any longer. But I think you have to do a little bit of soul searching because you were warned that this was coming and you really disregarded a Commissioner that said it's not going to happen, Commissioner. We need this space. They'll never cut us. And now we're kind of left with the mess, not that you didn't do good work in what you're doing, but we're left with the fiscal mess. So you know, it's something that I thinkl can support you, andl hope the Manager's very successful in dealing with his lease negotiations. But I think part of being in the office that you're in is also a fiscal responsibility 'cause anybody could do any good work with any amount of money, but can a person do good work with a tightly restrained budget? That's the talent. That's the art that I think this City's going to have to run on for the next three to five years. So I just wanted to put that on the record. I know we've had a tortured -- sort of tortured relationship. I respect what you do, but I just caution you on your fiscal responsibility. All right, we have a motion and it is as modified. The mover understands that, correct? Commissioner Dunn: Yes, yes, Mr. -- Chair Sarnoff All right. And we have a second? Vice Chair Carollo: Yes. Chair Sarnoff Any further discussion? All in favor, please say aye." The Commission (Collectively): Aye. Chair Sarnoff Okay: RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE COCONUT GROVE BUSINESS IMPROVEMENT DISTRICT ("BID"), TO PROVIDE FOR THE OPERATIONS AND MAINTENANCE OF THE BID, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010, AND ENDING SEPTEMBER 30, 2011. 10-01029 BID Memos.pdf 10-01029 Legislation. pdf 10-01029 Exhibit.pdf 10-01029-Submittal-Coconut Grove BID Budget, Estimated Actual & Preliminary 2011 Budget.pdf Motion by Commissioner Suarez, seconded by Commissioner Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-10-0426 Chair Sarnoff BH.8. CarolAbia: Thank you. Janet McAliley: Thank you very much. City ofMiami Page 48 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff Thank you. Commissioner Gort: Thank you. David Collins: Commissioners, David Collins, executive director of the Coconut Grove Business Improvement District. I stand for BH.8. Shall I read it? Chair Sarnoff. Just put it on the record, David. Mr. Collins: Resolution. A resolution of the Miami City Commission, with attachments, approving and adopting the annual budget of the Coconut Grove Business Improvement District (BID), to provide for the operations and the maintenance of the BID, for the fiscal year commencing October 1, 2010 and ending September 30, 2011. Chair Sarnoff And if you would just put on the --? Well, let me put on the record for the Commissioners. This is a tax increment district, which means this is a group of people taxing themselves above what the taxable rate is to the City ofMiami. Mr. Collins: Indeed. And we receive no general funds from the City ofMiami. Chair Sarnoff. Okay. Can get a motion on --? Well, let me ask public hearing. Anybody wishing to be heard on BH.8, please step up. You want your four minutes, I'll give you your four minutes. Mariano Cruz: I am grateful. Chair Sarnoff. All right, all -- coming back to the Commission, the public hearing is now closed. Can I get a motion on BH.8? Commissioner Suarez: So moved. Commissioner Dunn: Second. Chair Sarnoff. Okay, we have a motion by Commissioner Suarez, second by Commissioner Dunn. Any discussion, gentlemen? Vice Chair Carollo: Yes, Mr. Chairman. Chair Sarnoff. You're recognized for the record. Vice Chair Carollo: Thank you, Mr. Chairman. I have a question. Mr. Collins: Sure. Vice Chair Carollo: In the NDA (NondepartmentalAccount), I specifically remember 250,000. However, when I see total income parking surcharge, I see 220, 000. Where's the difference of 30,000? Carlos A. Migoya (City Manager): It has not been taken out of NDA. Vice Chair Carollo: It has not been taken out of NDA. Mr. Migoya: It has now, N-O-W. We caught it when you -- when we discussed it over the weekend and now has been deducted, so it's -- City ofMiami Page 49 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: Okay. Mr. Migoya: -- NDA is now showing 220. Thank you very much for the $30, 000. Vice Chair Carollo: We're a team, right? Mr. Migoya: Exactly. We're all in there to try and figure it out. Vice Chair Carollo: Okay, so we have that. What else? General administrative. It seems to be like 27 percent of all your operating expenses is general administrative. What makes up general administrative 'cause it -- 27 percent -- Mr. Collins: Sure. Vice Chair Carollo: -- I think, is very high. Mr. Collins: I would agree with you, except that I think salaries (UNINTET,TIGIBT,F) 19 percent of the total budget so that general administrative includes such items as Web site development and various insurances. We do a lot of work in the public right-of-way; for example, when the City doesn't trim trees. We just finished trimming 550 trees that hadn't been trimmed for 20 years. Vice Chair Carollo: The City doesn't trim trees? Mr. Collins: Not where we are. They haven't completely trimmed the trees in something like -- Vice Chair Carollo: Really? Mr. Collins: -- 30 years actually, so that the purpose of the BID is to enhance the work that the City does. We also hire extra police, extra sanitation. Vice Chair Carollo: I understand, but general administrative doesn't mean -- Mr. Collins: Sure. Vice Chair Carollo: -- going out there and trim trees. Mr. Collins: No, it doesn't. Vice Chair Carollo: General administrative means -- well, I'm not going to get into all the details -- Mr. Collins: Well, actually -- Vice Chair Carollo: -- but it's not going out there and trimming trees. Mr. Collins: No. IfI may answer your question, it includes such things as Web site and related ongoing management of the Web site -- that's very important because we're improving business -- Grove leasing/branding project, which is done by a branding agency, in this case Turkel, which is designing a way for us to address empty storefronts and -- Vice Chair Carollo: Before you continue -- Mr. Collins: These are GNA, though. City ofMiami Page 50 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: Chairman, you're also the Chairman in this --? Okay. Andl would imagine this got approved by the board, by your -- Chair Sarnoff. Oh, yeah. Vice Chair Carollo: -- board and so forth? Chair Sarnoff. Oh, yeah. Vice Chair Carollo: Okay. When you mentioned Web site, I also see marketing and advertising which is -- I mean, marketing advertisement and general administrative combined is almost 50 percent of your total operating expense, so -- I mean, I don't know if the BID is -- Chair Sarnoff. That's the intent. The intent -- Vice Chair Carollo: If that's the intent -- Chair Sarnoff. Right. Mr. Collins: Right. Vice Chair Carollo: -- but, you know, I -- again, I'm just doing my due diligence. Andl would still -- you know, doesn't have to be, you know, after this meeting and so forth, but in the next day or two, I would like to see, you know, itemized the general administration. I want to see administrative -- Mr. Collins: Sure. Vice Chair Carollo: -- everything that's in there -- Mr. Collins: Right. Vice Chair Carollo: -- with the amounts. Mr. Collins: Sure. Vice Chair Carollo: And one other thing. I see here in your total income contribution general BID fund. Mr. Collins: Yes. Vice Chair Carollo: Does that mean you have a shortfall and you're using -- Mr. Collins: It's similar to what you were saying to DDA, except that we've reduced our draw on the assets, the trust fund, this -- Vice Chair Carollo: So in other words -- Mr. Collins: -- year over last year. Vice Chair Carollo: -- so this is a balance from previous years that you're using this year to -- Mr. Collins: Yes. City ofMiami Page 51 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: -- balance your budget? Mr. Collins: We have -- the second page of our budget -- I don't know if they gave it to you -- is a whole list of allowable uses for our trust fund, our streams of revenue -- Vice Chair Carollo: No. Mr. Collins: -- so that -- Vice Chair Carollo: I actually don't have it. Mr. Collins: Yes. I can provide that to you, Commissioner. I can bring it around this week. Vice Chair Carollo: Yes, definitely. I will need that. And again, you know, out of courtesy to the Chairman of this board and so forth, I would, you know, approve, but you know, these are items that I feel that do need to bring up and -- Mr. Collins: Sure. Vice Chair Carollo: -- again. Mr. Collins: We do have a pretty good office rent, ifI may mention that. Vice Chair Carollo: I'm sorry? Mr. Collins: We have a pretty good office rent at 22,500 a month. Chair Sarnoff. I think if he knew what your office rent was and I think if he knew what your salaries were, he would be very impressed. Mr. Collins: Okay, good. Vice Chair Carollo: But it's not broken in -- it's not broken up, itemized, so I can't tell. It's buried somewhere in there. Mr. Collins: Yes. Vice Chair Carollo: If it wasn't buried somewhere -- Mr. Collins: Right. Vice Chair Carollo: -- in there, maybe I could tell. I mean, I'm trying to be nice, but -- Chair Sarnoff. David, can you mention the salaries of the employees so that --? Mr. Collins: Yeah. I think the top salary is 84 and others -- another employee is 45 and another is 52, and we work seven days a week, and we have no pension at all. Chair Sarnoff. Okay. And your rent is 2,500 a month. Mr. Collins: Yeah, it's 2,500 a month. It's pretty modest stuff. We're talking about putting stuff on the street. Our offices are almost on the street. We're out there every day. And can provide you this now, if you'd like. Vice Chair Carollo: Sure. I mean, whenever. But I definitely want to look into it a little bit City ofMiami Page 52 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.9 10-01010 Community Redevelopment Agency (CRA) more. Okay. Thank you. Chair Sarnofff. And if you could, David, the next budget cycle -- Mr. Collins: Yes. Chair Sarnofff. -- would you please give as much a breakdown, just like you gave him, from now on? Mr. Collins: Sure. I actually turned that in. I don't know how the City -- Chair Sarnofff. Okay. Vice Chair Carollo: I don't have it. Mr. Collins: -- decided not distribute it. Yes, sir. Chair Sarnofff. All right. So we had a motion and we had a second. Public hearing's closed? All right, all in favor, please say aye." The Commission (Collectively): Aye. Mr. Collins: Thank you very much. Vice Chair Carollo: Thank you. Mr. Collins: Sure. Chair Sarnofff. Thank you, David. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ACCEPTING AND ADOPTING THE BUDGETS OF THE SOUTHEAST OVERTOWN/PARK WEST, OMNI REDEVELOPMENT DISTRICT, AND MIDTOWN COMMUNITY REDEVELOPMENT AGENCIES, ATTACHED AND INCORPORATED, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011, AS APPROVED BY THEIR RESPECTIVE BOARDS OF COMMISSIONERS. 10-01010 CRA Memos 10-14-10.pdf 10-01010 Legislation 10-14-10.pdf 10-01010 Exhibit 10-14-10.pdf Motion by Vice Chairman Carollo, 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 Note for the record: Item BH.9 was deferred to the Commission meeting currently scheduled for October 14, 2010. Chair Sarnofff. BH.9. Anybody going to present BH.9? Mariano Cruz: CRA (Community Redevelopment Agency). City ofMiami Page 53 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff. No. It's CRA. Vice Chair Carollo: Yeah. Maybe we should take a recess. Carlos A. Migoya (City Manager): The CRA -- Chair Sarnoff. Is that already done? Are we -- is that done by the special -- Vice Chair Carollo: No. Chair Sarnoff. -- session --? Mr. Cruz: No, no, no. Vice Chair Carollo: No, no, no, no, no. Mr. Cruz: No, no. It's a different animal now. Chair Sarnoff. 'Cause it's what -- it's this year's, right? Mr. Cruz: Yeah. This is the hearing. This is the official hearing for the budget '10 to '11. Chair Sarnoff. So why isn't somebody presenting on BH.9? Mr. Cruz: I read the papers andl know how to read English pretty good. Vice Chair Carollo: You all voted for the new executive director. I wasn't at that meeting. I -- Mr. Cruz: Unless he only work till 5, maybe. I don't know. Chair Sarnoff. Is he not back there? Is he --? Mr. Migoya: Let us find out. Can we take --? Chair Sarnoff. You want to do something -- Mr. Migoya: Yeah, let's -- Chair Sarnoff. Well, the next three are pretty tough. You want to do BH.13? Vice Chair Carollo: Maybe we should take a quick recess? Chair Sarnoff. Want to take a break? Mr. Migoya: Well, we should take a recess anyway. We have to -- Chair Sarnoff. All right, let's take ten minutes. Vice Chair Carollo: Ten minutes. Thank you. [Later... Chair Sarnoff. All right, we're back on the record. We were first addressing BH.9, which is the Community Redevelopment Agency. Mr. Bockweg, would you approach the podium? City ofMiami Page 54 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Pieter Bockweg (Executive Director, Community Redevelopment Agency): Good evening, Mr. Chair, Commissioners. Before you is the budget -- the acceptance of the budget which was approved by the CRA board in July of 2010, and this is simply accepting what you have already approved in that CRA board meeting. Chair Sarnoff. All right. Let me open it up to a public hearing. Is there anybody from the general public who wishes to be heard on BH.9? Mr. Cruz, you are recognized for the record. Mr. Cruz: Yeah. Mariano Cruz, 1227 Northwest 26th Street, Miami neighborhood, Allapattah, Miami -Dade County. I am also a member of the one of the boards of Camillus House about (UNINTELLIGIBLE) and all that. And my only question is the City Commission approves some money, a million, five million, then five million, ten million for Camillus House and they're supposed to be -- and one other question the people ask me because I send them to apply for the jobs that supposed to be for Overtown and Allapattah from the construction of Camillus House there. And I called Dr. Ahr and he told me, no, we don't have the money yet. I don't know what's happening, but they haven't given all the money. He say we use it. Yeah, what about the customer. We use the money. We got money from previous other accounts and we using that money. They got money (UNINTELLIGIBLE) different things, whatever, donation, whatever. But (UNINTELLIGIBLE) -- people need the jobs there. And then they tell me we don't have jobs till they nor the contractors or the subcontractors, they got to (UNINTELLIGIBLE) to employee there, local people, and that's the question they ask me. That's why I want to know an answer when they ask me there drinking coffee on 17th Avenue, what happened to the Camillus House. We support Camillus House the last time, to Camillus House, and looked, they're not calling anybody from here. Andl talk to people that specifically they sent the resumes there, but they were asking or doing the things by the book and it looks that the book is falling in their (UNINTELLIGIBLE). Chair Sarnoff. All right. Can you explain how the CRA is funding the Camillus House? I don't think it's (UNINTELLIGIBLE) $10 million. Mr. Bockweg: It's a total of $10 million. The agreement -- Chair Sarnoff. I don't think they're handing it to them in one year. Mr. Bockweg: No. It's $2 million a year, over five years. At last -- and the CRA just recently signed that obligation a few weeks ago. There has been an influx of jobs within that development. At first it was 14; now there's an additional 25. And then remember, it's important to point out that the actual Camillus House part of it hasn't actually started construction. They first got to do the garage. The other building, which is ultimately part of the Commission -- Camillus House as far as the property is concerned is continued to do construction. Last count, there were 97 employees on site, 39 of which were from local Overtown residents, last count. Mr. Cruz: (UNINTET,T IGIBT ,F) Allapattah. Mr. Bockweg: Well, if -- Chair Sarnoff. All right. You've gotten your answers pretty much. Anyone else from the general public wishing to be heard on BH.9? All right, coming back to the Commission, the public hearing is now closed. Is there a motion? Commissioner Dunn: So moved. Chair Sarnoff. Motion by Commissioner Dunn -- Commissioner Gort: Seconded. City ofMiami Page 55 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff. -- second by Commissioner Gort. Discussion, gentlemen? Vice Chair Carollo: Yes. Chair Sarnoff. Vice Chair is recognized. Vice Chair Carollo: Thank you. Regular salaries, I want to start with that because I requested, dating back to the Monday where we had a CRA meeting, the breakdown of all your employees and the salaries. I know you mentioned when you were sitting there, oh, I have it, butt never received it andl still don't have it. I don't know what's the breakdown of the employees and the salaries in the all the CRAs. Plus, when I see here you're budgeted for 2010 as compared to what you're requesting for 2011, I see an increase of 8 percent. Is that correct? Mr. Bockweg: Commissioner, just to start from (UNINTELLIGIBLE). The actual budget for 2010-2011 has already been approved by the CRA board in July. Vice Chair Carollo: But you're before us now, right? Mr. Bockweg: I'm sorry? Yes, I am. Vice Chair Carollo: But you're before us? Mr. Bockweg: Yes, I am. Vice Chair Carollo: And now this City Commission needs to approve it. Mr. Bockweg: Well, technically, Commissioner, you do have to approve it, but it's, in essence, an acceptance of what the board had approved. It's my understanding, talking to my staff that the City Commission cannot change the light [sic] items in the CRA budget; only the board can. That is my understanding, talking from my staff. I'll be more than happy to address any questions as far as budgets and salaries within the CRA, but my understanding is that the -- only the board can change the light [sic] items in the budget. Vice Chair Carollo: All can tell you is that have requested all the members, all the positions, all the names, and all the salaries for the CRA andl still don't have it. And now when I see the 2011 proposed budget, I see an increase of 8 percent from the budgeted amount from 2010. I actually also wanted the actual amounts for 2010, which I haven't seen. What's been provided in the last meeting, this last CRA meeting, I see general government andl don't really see -- I see the budgeted amount, but don't see the actual. So the bottom line is I don't know what we spent in salaries for 2010. Mr. Bockweg: The operational budget for the CRA in the Omni is at 3 percent and in Overtown is at 2 percent of the overall budget of the CRA. State statute, under Chapter 163, allows the operating budget to go as high as 20 percent. So as far as specifically the operating budget for each individual CRA, it is far, far below what is actually allowed by state statute. Again, at 3 percent for the Omni and at 2 percent for Overtown. Vice Chair Carollo: Three percent, two percent, percentages here, but I want to see the actual numbers. I want to be able to tie these numbers. I want to be able to see the positions. I want to be able to see what it is. I'm seeing an 8 percent increase in regular salaries from the budgeted amount last year to this year andl want to know what's that increase about, who's getting increased. Mr. Bockweg: Well -- City ofMiami Page 56 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: Andl don't have that information. Mr. Bockweg: -- the -- it's my understanding is that the staff at the CRA has not had an increase in salary, with the exception of two people, over the last four years. That's my understanding coming into the position. Vice Chair Carollo: That's your understanding. However, I want to be able to see if your understanding is correct or not by actual [sic] seeing the positions and actually seeing the salaries because the budgeted -- what's being presented to me -- in front of me shows an increase of 8 percent. Mr. Bockweg: The increase of 8 percent that is before you is the anticipation of the additional hires, is my understanding from talking to my Finance director, and the -- and other -- and the compensation packages might be mine in the future. But the additional hires, I think, is the part of that 8 percent. Commissioner Dunn: Mr. Chairman, I want to kind of piggyback. Mr. Bockweg, one of the things that we've been trying to do in this -- especially important because some things were purported earlier by the Fire Department, and I'll take this opportunity to respond to that real quick and then deal with this right now. First of all, I think all of us are trying here to show an appearance of fairness and I think some of the things about fairness have been misrepresented, especially with the CRA. Andl need to say this because I -- we work together very good on this dais. We've tried not to grand stand. We've tried to work together. It's been a very painful process. But I will say to the gentleman that -- yes. No, not you, not you. The one that -- yeah. I don't need a white man trying to tell me how to be black. I just want to say that for the record. You put that on the record. I've been a black man -- let me say this for the record. I want to say that I've been a black man for 49 years. And until you have walked in my shoes and in my skin and dealt with what I've had to deal with, what my parents have had to deal with, my grandparents have had to deal with, what my great grandparents have had to deal with in this City -- I lived in Overtown. I live right now in Liberty City. And you don't see a whole lot of people from the community because for the most part, they have been pleased with the efforts of me trying to represent them in the most fairest way that I could. I never have, I never will sell my soul. So I just want to put that on the record. Andl just want to address that because you put it out there -- Unidentified Speaker: No. I did not -- Unidentified Speaker: No. That was me. Commissioner Dunn: That was -- well, whoever put it out -- that goes to you, sir. I want that to go to you. Okay, now let me say this. Mr. Bockweg, we're going to do -- we're going to be fair. We're going to show everybody in this community that -- and in this City that we're going to go across-the-board, so what miss -- what Vice Chairman Carollo is simply asking for, we need the items or the salaries of each individual. That's -- I think that's a simple request. We need to get that. I know this is not technically the forum, but because this issue is before us -- we're dealing with a lot of sensitivities in this community, andl think even though the CRA operates from a separate budget, it is not taking from the general budget, we want to show that we're doing our very best to be fair. And I've said many times, everyone -- and I'm saying it again, sir -- everyone's going to have to give some skin in this game. But for the record, I don't need a white man trying to tell me how to be black. Commissioner Suarez: Mr. Chairman. Commissioner Gort: Mr. Chairman. City ofMiami Page 57 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff. All right. Commissioner Gort. Commissioner Gort: I understand what you're saying -- Commissioner Dunn: You understand. Commissioner Gort: -- but whatever the CRA -- Chair Sarnoff. All right. You don't want to be removed. You don't want to be removed. Unidentified Speaker: He's addressing me. Commissioner Gort: Whatever the CRA -- Chair Sarnoff. He's not addressing you. Everything from this forth goes through the Chair. Commissioner Gort is recognized. Commissioner Gort: I understand what you're saying. The CRA board approves and then the Commission has to rubber-stamp whatever the board approves, but at the same time, the board has not approved a lot of the contracts or -- for example, one of the things we talked about is your contract itself. It's not been approved by the board. Mr. Bockweg: That's correct. Commissioner Gort: So that has to go back to the board. And the board can request what the Commissioners -- the Vice Chairman's requesting at this time. So I want you to understand that. At the board level, we can request all that information. Mr. Bockweg: Without a doubt. Commissioner Gort: Okay. Mr. Bockweg: Absolutely, Commissioner. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. Vice Chair is recognized, then I'm going to go to Commissioner Suarez. Vice Chair Carollo: Thank you, and I'll make this quick. I have to admit, I really resent the fact that you thinkl am going to rubber-stamp this. I can tell you right now, ifI don't get the information that (UNINTELLIGIBLE) given me, I'm going to vote no on this budget, whether it was approved by CRA or not or this and that. I will vote no. And maybe you'll get three votes up here. You know, maybe you're right; maybe you could count. But I could tell you right now, I will not rubber-stamp anything. Thank you. Chair Sarnoff. Commissioner Suarez. Commissioner Suarez: Thank you, Mr. Chairman. Thank you, Vice Chairman and my colleagues. I'm going to vote no on this very simply. Without not only a detailed explanation on the salaries, but without my agreement on what the salaries are, I'm not going to vote in favor of it. So I told you this in private when you met with me. I told you that this was going to happen when you brought it before our board. And this is exactly what is happening. It's -- in addition to -- we've approved a lot of budgets up here in a very short period of time and our requirements for those budgets have been uniform. Every single time the Vice Chairman or someone else has City ofMiami Page 58 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 asked for a detailed budget with every single person's salary in that budget, okay. This is no different, you know. And we're not even getting into the substance of whether, you know, we're going to approve these salaries or not. I mean, I think it's pretty clear where the votes are lining up. I can tell you, I'm not going to approve them, and I told you that privately, and I told you that this was a mistake, so -- Commissioner Dunn: Mr. Chair, I also -- Chair Sarnoff. Commissioner Dunn. Commissioner Dunn: -- will join my colleagues because I want to show fairness. We are working together. Andl would ask that maybe we look at deferring this item until you get the information. If not, then we go ahead and -- 'cause I cannot vote on it as well. Chair Sarnoff. Well, we -- do we need to do this today or is this something we table till the end of the night? Julie O. Bru (City Attorney): Well, you could table it till the end of the night. I -- you know, like all the other agencies, you should have a budget, you know, by October 1. If it doesn't happen, you continue to operate under your prior year's budget, prior -- Chair Sarnoff Well, that's not a problem then. Ms. Bru: -- fiscal year budget, but maybe we can -- Chair Sarnoff. So then why don't we defer this until the next Commission meeting? Is there a motion to that effect? Vice Chair Carollo: So moved. Commissioner Suarez: Second Commissioner Dunn: Second. Chair Sarnoff. All right, we have a motion by the Vice Chair, second by Commissioner Suarez. Any discussion, gentlemen? Hearing no discussion -- Commissioner Suarez. Commissioner Suarez: Just for purposes of clarification, what we'll do is -- 'cause we're going to have a CRA hearing, a budget -- I mean -- Commissioner Gort: Right. Commissioner Suarez: -- I'm sorry, a CRA meeting that day, and so we're going to have -- Chair Sarnoff. Open them -- Commissioner Suarez: -- both of these things. Okay. Chair Sarnoff. Why don't we open them simul -- sort of -- well, not simul -- we'll do them -- we'll take them up at the end of the Commission meeting and the beginning of the CRA. Commissioner Suarez: You know, ifI may one more time, Mr. Chairman. I think, Mr. Vice Chairman, take a look at the budget and let's tell them everything that we need between now and that day in terms of itemization and break down, if there's anything other than the salaries that you want to take a look at. City ofMiami Page 59 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff Why don't you give us the check register? Mr. Bockweg: Okay. Chair Sarnoff The checkbook register. That gives you as much detail -- that's where everything is paid, by check, I take it, right? Mr. Bockweg: Yes, that's correct. Vice Chair Carollo: In all fairness, Commissioner Suarez, the thing is, I think need to get into a lot more detail than that. I'm not able to tie some of the numbers. I want to see where actually it ties from the -- I'll give you a perfect example, the carry fund balance. I don't know where those 900,000 are coming from from the revenue, which itemized CRA. I -- the list is going to be very long and extensive, so I'd rather just -- instead of start saying all these things -- and I didn't make a list. I just -- when I started really digging into this, I said whoa, what's this, what's that? Andl do have a lot of questions. I think that, in all fairness, I should get together with their finance person and really start looking through this. As a matter of fact, your itemized revenue and expenditures, I see for Omni, your total -- your expenditures -- looking at your CAFR (Comprehensive Annual Financial Report) from 2009, your CAFR in a special revenue fund shows general government expenses andl don't see it here in these expenditures, so I want to be able to tie it back to your general and -- budget general operation fund. So the bottom line is thatl think the best scenario will be for me to get with -- Mr. Bockweg: Miguel. Vice Chair Carollo: -- your finance director and so forth and really, you know, go through all the details. Chair Sarnoff What -- Madam Clerk, what's the next Commission meeting and when is the next CRA meeting? Priscilla A. Thompson (City Clerk): According to my schedule, the next Commission meeting is on October 14. I have not been given a date for the next CRA meeting. Chair Sarnoff Would you call a CRA meeting at the same time? Mr. Bockweg: It's already scheduled for the 14th of October. Chair Sarnoff Okay. All right, so we have a motion and we have a second. Commissioner Suarez: I just want to make sure that, you know, the Vice Chairman, if that's enough time, you know, 'cause he -- you know, what he's talking about is something extremely detailed andl want to make sure he has enough time to feel comfortable. Vice Chair Carollo: We -- thank you. I mean, we could start. Let's see how it goes. I mean, our time has been -- our time frame has been constrained many times, like receiving information this morning when we're voting on it, you know -- or this afternoon when we're going to vote on it. So you know, let me work with the time frame and so forth. And ifI need more time, I'll definitely, you know, mention it in the next CRA or Commission meeting. Chair Sarnoff Okay. Mr. Bockweg: Thank you. City ofMiami Page 60 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.10 10-00941 Fire Fighters and Police Officers Retirement Trust Chair Sarnoff All right. So we have a motion, we have a second. All in favor, please say aye." 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 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 Commissioner Gort, seconded by Commissioner Dunn II, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Carollo and Dunn II Noes: 1 - Commissioner(s) Suarez R-10-0427 Chair Sarnoff All right, BH.10, Firefighters' and Police Officers' Retirement Trust. Robert Nagle: I'm Robert Nagle, the administrator of the Miami FIFO (Fire Fighters' and Police Officers) Retirement Trust, 1895 Southwest 3rdAvenue. A resolution of the Miami City Commission, with attachments, approving and adopting the annual budget of the City ofMiami 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, 200, 000 as part of normal costs, to provide for the administration of the retirement trust fund. Chair Sarnoff All right. Let me open up a public hearing. Anybody wishing to be heard on BH.10, please step up to the podium. Hearing none, seeing none, coming back to the Commission. Is there a motion? Commissioner Gort: So move. Commissioner Dunn: Second. Commissioner Gort: Question. Chair Sarnoff Motion by Commissioner Gort, second by Commissioner Dunn. Any discussion? Commissioner Gort: Yes. I have a question. Chair Sarnoff You're recognized for the record. Commissioner Gort: You stated the budget's two million two hundred -- Mr. Nagle: Two million two hundred thousand even. City ofMiami Page 61 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Gort: In other words, you -- according to your projections, you dropping 181,000? Mr. Nagle: Correct. Carlos A. Migoya (City Manager): Mr. Chair, this is in conversation with Tom Gabriel, which is Mr. Nagle: Right. Mr. Migoya: -- the chair, I guess -- Mr. Nagle: Yes. Mr. Migoya: -- of FIPO. And after the conversations that we had -- that you all had at his direction, he walked out from here last week. He came back with -- they came back with a proposal of reducing it $181, 000 to $2.2 million. Chair Sarnoff So if the record -- I'm sorry. Vice Chair Carollo: No. Go ahead. Chair Sarnoff Well, the last -- the '09 was $2, 057, 000. The request was 2, 381, 000. You're saying this is now being modified to $2, 200, 000 ? Mr. Migoya: Which is 8 percent lower than what they previously were proposing for 2010-'11. Chair Sarnoff Okay. Go ahead, you're rec -- Commissioner Suarez. Commissioner Suarez: Thank you, Mr. Chairman. My emphasis -- I don't know if the Mayor -- you want to chime in first? Mayor Tomas Regalado: I just want to make sure that, number one, the reduction that they made was on the record; and number two, to understand that we are not recommending the half a million dollars that they both requested for the actuarial. We're not recommending the half a million dollar additional request, other than the budget for this year. Mr. Migoya: No. That's -- Vice Chair Carollo: I think that was GESE (General Employees' and Sanitation Employees'). Mr. Nagle: Yeah. Mr. Migoya: Correct. Mayor Regalado: Yes. Vice Chair Carollo: That was the GESE fund. This is FIPO. Mayor Regalado: I know, I know. And I just want to put on the record that they did reduce the budget. And on the other pension that we're not recommending the whole half a million dollars, so this is for FIPO and they have reduced, as requested by the Commission, their operations. Commissioner Suarez: What's -- Mr. Chairman, ifI may ask, what's the final number? City ofMiami Page 62 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnofff. What is the final number? Commissioner Gort: Two million two hundred thousand. Mr. Nagle: Two million two hundred thousand even. Commissioner Suarez: How many? Chair Sarnofff. Two million two hundred thousand? Commissioner Suarez: Okay. May I, Mr. Chairman? Chair Sarnofff. Yeah. Colloquy, please. Commissioner Suarez: Thank you. The -- are you aware that the auditor general issued a report, number 010-002? Mr. Nagle: Yes. Commissioner Suarez: Okay. And in that report, which you know, we've had a lot of discussions back and forth with -- you know, the issue that have is not as much on the actual amount of the expenditures for the management of the fund as it is on the actual management of the fund itself and the track record andl think it needs to come to light because I think a lot of people don't understand the impact and the influence that a mismanaged fund has on all the employees and on all of the residents of the City of Miami, and I'm quoting from the audit findings which talk about material investment losses. And this is for a three-year period beginning October 1 and ending September 30, 2009, that indicates that the Fire Fighters' and Police Officers' Retirement Trust fund, FIPO, lost approximately $214,551,906 in that period. The City's total contributions also were increasing in that period. I believe you sent a written response after this audit -- Mr. Nagle: Yes. Commissioner Suarez: -- explaining what your -- but at the time that this audit was given, you did not -- you had not yet written a response regarding the preventative or mitigation efforts that your fund took to prevent those losses. Andl -- the reason why I think it's important is because if there's a loss in the pension fund, it has to be paid out of the general liability. I mean, out of the general fund, and that's over a five-year period. There's smoothing and there's other factors that are considered. But that puts pressure on our ability to hire. That puts pressure on what we can pay our employees. That puts pressure on a lot of things related to our budget. So I just want everyone to know that it's very important that our funds are managed appropriately and if they're not being managed appropriately, that remedial actions are being taken because ultimately, that hurts our employees not only in the sense that it's hurting them in the fund aspect, but it's also hurting them on the operational side where we have to fund that liability, that unfunded liability. Did you have any of your fund managers -- were any of your fund managers on the probation list? Mr. Nagle: Yes. Commissioner Suarez: Did you remove any of those managers? Mr. Nagle: Yes. Commissioner Suarez: Let me -- before you answer that, let me just explain what the probation list is for those who are listening. The probation list is a manager is placed on probation if he or she remains on the watch list, which is the list prior, for six months. A manager will return to City ofMiami Page 63 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 good standing, which is the best category, if he or she achieves returns equal to or better than 90 percent of the median manager's return and has exceeded its benchmark. If a manager remains on probation for one year, he or she is subject to termination. Did you terminate any managers who were on the probation list for more than one year? Mr. Nagle: Yes. We terminated two or three right offhand. Commissioner Suarez: Are there any that are on the probation list that were not terminated after one year? Mr. Nagle: There are three people still on our watch list that we're currently still -- Commissioner Suarez: So you're saying that there were people -- Mr. Nagle: -- reviewing. I can't recall right off the top of my head exactly when they went on the watch list. We don't necessarily fire someone after one year. We tend to watch -- if they've started to improve or relay to us that their method has retaken positive returns, then we may ride with them a little longer. We're not quick to fire someone if we're confident that our original decision to hire them may have gone a little astray but is returning to good returns. Just to give perspective -- bear with me for one second. Commissioner Suarez: Let -- while you're saying that, let me put some budgetary perspective to this. And Mr. Manager, if I'm wrong, please interrupt me and correct me. This year alone we are contributing to the FIPO fund twice as much than we are for the normal cost. In other words, the legacy cost, what's known as the unfunded liability. Mr. Nagle: Right. Commissioner Suarez: Twice of that amount of the normal cost is going to fund the FIPO deficiencies, correct? Mr. Nagle: Correct. Commissioner Suarez: Right. Mr. Nagle: But funding -- Commissioner Suarez: Wait, wait, wait. Wait, wait, wait. Mr. Nagle: All right. Commissioner Suarez: Wait. And that is -- what's that number exactly? Or give me a ballpark of what that number is. Mr. Nagle: I didn't quite hear everything you said. Will you repeat --? Commissioner Suarez: Okay. You have the normal costs. Mr. Nagle: Right. Commissioner Suarez: And then you have what I call the legacy costs, which is the amortization of the unfunded liability, okay, the payment that the City has to make out of its general fund to sustain the pension system, right? Mr. Nagle: Right. City ofMiami Page 64 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Suarez: How much money is that portion? Mr. Nagle: For this current fiscal year? Commissioner Suarez: For this current fiscal year. Mr. Nagle: The original number was around $65 million. Commissioner Suarez: Okay. So that $65 million that could have gone to salaries, that $65 million that could have gone to our pension system, that $65 million that could have gone to health care, and instead it was squandered by -- Mr. Nagle: No. Commissioner Suarez: -- investment managers that are on the probation list that were not terminated. Mr. Nagle: No. First of all, losses that were incurred during this two-year period were at the severe market downturn. There is not a market sector, an investment style, or any other description you can apply to investment managers that did not suffer losses then. There was -- Commissioner Suarez: But here's what I have a problem with that, and -- Mr. Nagle: There's no -- Commissioner Suarez: -- I'm sorry for interrupting you. Mr. Nagle: -- place to hide. There's a recommendation that came across to us from the audit that was we should have exercised a big sale of securities that went down a large amount. The problem with that is you book a loss at that point and then you've removed those securities from your holdings and you never have a chance to regain them and recover from them. Commissioner Suarez: But here's my issue -- Mr. Nagle: We have recovered. Commissioner Suarez: Mr. Chairman, ifI may? Here's my issue with that, with what you're saying, okay. The probation list takes into effect the fact that everyone -- it's a bad market year. This is not a comparison -- this is a comparison against your peers. In other words, everyone is dealing in the same bad market year. If you're in good standing, it's because your returns during the most recent three-year period are equal to or better than 90 percent of the median manager's return in the same period, so everyone's going through the same issue. It's just are you picking someone that's making good decisions or are you picking someone that, when you judge them against their peers, is not making good decisions? And that has a consequence. Andl want the members who are here today and who are watching today to understand what the consequence of that bad decision is. It's $65 million, which could have gone to salaries, which could have gone to our healthcare system. It has a real cost. It has a real consequence. Mr. Nagle: Well, there are other factors than just the loss that go into that 65 million. The 65 million funds assets that may have gone down, but it also funds liabilities of the fund, which are the benefits that we're paying to retirees and future benefits that we will pay to future retirees. There are other factors involved than just the loss. Commissioner Suarez: But it's basically the unfunded liability portion. City ofMiami Page 65 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Nagle: Right. Commissioner Suarez: Right. So what I'm saying is if this fund were managed well -- Mr. Nagle: Well, it was managed well. We are not behind median or average funds. We are doing better than median aver -- than average funds and our long-term record reflects that. Commissioner Suarez: So -- okay, but we're not talking about a long-term record. We're talking about the last three years which is in the audit finding. You're saying that the loss of -- for a pension fund, $214 million was better than average? Mr. Nagle: Yes. Calpers -- we lost around 21 -- 23 and a half percent for the worst year. Calpers lost 25 percent for that term. A lot of funds lost in the mid 30s. We were above the median and the average for other funds during that one year. We suffered -- when you encounter gains and losses -- the 250 million is -- doesn't take into account gains that we had incurred because of our fixed income investments, changes we had made to take advantage of the changes in the market with the freezing of the fixed income market. We went into TIPS, Treasury Inflation Protected Securities, and we also went into a mortgage opportunity fund to take advantage of the disaster of the mortgage market to gain -- regain the losses that we had. Commissioner Suarez: So you're invested in the mortgage market? Mr. Nagle: We were always in the mortgage market. Commissioner Suarez: Okay. Mr. Nagle: Our fixed income and managers invested in mortgages. Commissioner Suarez: Okay. Mr. Nagle: It's a common fixed income investment for pension funds. Commissioner Suarez: What would have been the yield of your fund had you been invested in T (Treasury) bonds? Mr. Nagle: T bonds or -- Commissioner Suarez: T bonds, treasury bonds. Would it -- Mr. Nagle: If only that (UNINTELLIGIBLE) -- Commissioner Suarez: -- have been positive or would it have been negative? Mr. Nagle: It would -- Commissioner Suarez: Would it have been positive or would it have been negative? Mr. Nagle: -- if all the fund was in that, it would -- probably would have been a single -digit inflation -- return around 3, 4, maybe 5 percent at best. Commissioner Suarez: Five percent. So -- Mr. Nagle: But -- City ofMiami Page 66 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Suarez: -- we would have -- so wait, wait, wait, wait. Let's stick to that, 5 percent. So you wouldn't have lost $214 million, so let's wipe that off -- Mr. Nagle: No. Commissioner Suarez: -- which -- of which we're paying for today, of which our employees are paying for today to the tune of $65 million. Mr. Nagle: But we don't invest -- Commissioner Suarez: Okay. Mr. Nagle: -- on one-year or even three-year horizons. Commissioner Suarez: In the last three years. Mr. Nagle: We invest on a 40- to 50-year horizon. Commissioner Suarez: Okay. In the last three years, though. Mr. Nagle: And if over 40 or 50 years -- Commissioner Suarez: And I'm -- and what I'm looking at is a snapshot of the last three years of this audit report -- Mr. Nagle: I know, but that -- Commissioner Suarez: Okay. Mr. Nagle: -- that's a bad snapshot. But that report targets the worst years our fund has ever suffered since -- in its original existence. It was a matter of fact of what happened in the markets in general. We invest on 40- to 50-year horizon. If you invested all the funds in treasuries over 40, 50 years, you would not be able to fund any of the benefits -- Commissioner Suarez: I agree. Mr. Nagle: -- that people are getting now. Commissioner Suarez: I agree. Mr. Nagle: We need diversify among different securities classes and assets. Commissioner Suarez: I agree. Mr. Nagle: And that's what we've always done. And we've taken a conservative approach. We're not what you would call an aggressive investor. We don't engage in timing. We don't invest in hedge funds. We don't do market timing. We're not short-term investors. Commissioner Suarez: Wait a second. Wait a second. You said you're not aggressive? You lost how much as a percentage over those three years period? Mr. Nagle: That was above -average return, even though it was a loss. Commissioner Suarez: Okay. What was the return, percentage wise? You said it was negative City ofMiami Page 67 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 23 percent? Mr. Nagle: Right. Commissioner Suarez: Okay. Mr. Nagle: But the next -- Commissioner Suarez: You don't think that's aggressive? Mr. Nagle: No. Commissioner Suarez: You don't think taking a risk of over 20 percent is an aggressive -- Mr. Nagle: No. Commissioner Suarez: -- risk position? Mr. Nagle: No. When you look at the whole profile, the whole portfolio, no, it is not. It was above -- an outstandingly above -average down year because of what went on in the markets. Commissioner Suarez: How many ofyour -- Mr. Nagle: That is something that no one -- Commissioner Suarez: -- fund managers were on the probation as a total of the whole? Mr. Nagle: At that time when we suffered the great loss? Commissioner Suarez: Over this period, over this three-year period. Mr. Nagle: We've never really had more than two or three managers on watch -- Commissioner Suarez: Out of how many? Mr. Nagle: -- at any time. We have 21 managers managing 27 portfolios. Commissioner Suarez: Okay. So 10 percent ofyour managers were on the probation list, basically -- Mr. Nagle: Right. Commissioner Suarez: -- and you did not fire any of them, not one? Mr. Nagle: Yes. After the fact, we made changes. I told you we added two classes, the TIPS and the mortgage opportunity fund, which both doubled over their time period. The minus 23 turned around to a plus 20 the following year, and this current year-to-date we're up over 6 percent, so we've recovered back that 23 and a half percent loss of that year. It took a couple of years, but that's why we're a long-term investor. Commissioner Suarez: Right. Mr. Nagle: We smooth out those returns over a long period rather than try to engage and find the peaks and the valleys of the market that are obviously occurring whether you're in real estate, stocks, bonds, or anything. City ofMiami Page 68 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Suarez: So at what point are we going to -- we, the residents, the employees, are we going to realize the benefits of your investment decision this year, the 6 percent? In other words -- Mr. Nagle: You'll start -- Commissioner Suarez: -- next year we're going to be contributing how much of the general fund money to sustain the pension system? Mr. Nagle: Next year? Commissioner Suarez: Yeah. Mr. Nagle: That's not computed until -- Commissioner Suarez: What's your guess, your best guess? Mr. Nagle: Well, we've already reduced it -- Commissioner Suarez: 'Cause we got a five-year guestimate from the Manager before. Mr. Nagle: Because of the implementation of this new ordinance, we've already seen a reduction in that 65 million to about 42 million because -- Commissioner Suarez: So what you're saying is the ordinance that the Manager proposed reduced that unfunded liability? Mr. Nagle: Right. Commissioner Suarez: So we have more money to pay for other things? Mr. Nagle: Right. Commissioner Suarez: Like salaries? Mr. Nagle: Or to balance the budget, however it's used. Commissioner Suarez: Okay. Got it. Mr. Nagle: And would expect with a positive return this year, that we'll see something in that range hopefully in the -- a guestimate at best in the 30 to 40 range. Commissioner Suarez: You know, the only thing hope -- and know I'm being tough on you. Mr. Nagle: I know. Commissioner Suarez: The only thing -- and there's a reason. The reason why is because I want everyone to know the consequences of these actions. And so I'm not as concerned about the budget per se -- Mr. Nagle: Right. City ofMiami Page 69 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Suarez: -- as I am concerned because that's -- whether it's two million or two million two, that's a drop in the bucket compared to $65 million. Mr. Nagle: I know. Commissioner Suarez: Okay, so -- andl want your members and your employees to know the consequences of that because there is a wage pressure. There is a pressure on the budget when investments don't go well, so -- and they should know that. Mr. Nagle: Yes. And we are fully aware of it too, and we're taking all efforts. We've made changes. We did a new asset allocation also in 2009 that reduced our risk profile as much as we could to meet our actuarial interest rate assumptions and those are also like changing as part of the new implementation of the code changes that were implemented earlier this evening. Chair Sarnofff. Commissioner Gort. Commissioner Gort: I have a question. This must have been a long time ago, but at one time my understanding was that if you did not perform in two quarters within 90 percent of the median, automatically -- and that was part of your contract -- you're out. Mr. Nagle: Yeah. That was eliminated, I would say, ten years ago. Commissioner Gort: Okay. Chair Sarnofff. Vice Chair. Commissioner Suarez: It's important for the employees to understand that. It's important for the employees to understand that. Because if we're keeping on managers beyond their useful tenure and that's costing the City ofMiami money, that's ultimately putting pressure on them. Mr. Nagle: I understand that. But we're also giving them the opportunity to recover, and by them recovering, then the fund recovers. Commissioner Suarez: What if they don't recover? And what if they do worse? Mr. Nagle: Then they would have been -- Commissioner Suarez: If they're on probation, that means that they've shown a track record of underperforming. Mr. Nagle: If they don't show recovery, then we would eliminate them. Commissioner Suarez: When? Mr. Nagle: During this period thatl mentioned that we give them extensions beyond that year. We look at them on a -- Commissioner Suarez: How much more is it going to cost us? Mr. Nagle: -- quarterly basis. Commissioner Suarez: How much more is it going to cost us? Mr. Nagle: Well, you have to remember when we look at the fund, we look at one day, one day of City ofMiami Page 70 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 the year. It's a picture. Commissioner Suarez: This is a three-year snapshot. This is not one day. Mr. Nagle: No. It's a picture taken on the last day of each fiscal year: Commissioner Suarez: Of the last three years. Mr. Nagle: On the last -- but it's a three-day picture. If you look at the fund over the three-year period with daily charts, you're going to see all this up and downfluctu -- Commissioner Suarez: Was the 214 million that was lost, was that on three individual days or was that over a three-year period? Mr. Nagle: Yes. It was -- it's two days. Commissioner Suarez: You lost $214 million in two days? Mr. Nagle: On -- by taking the value of the fund on those two days and comparing it with a day, probably the last fiscal year day of the prior year. Commissioner Suarez: You're not getting it. Mr. Nagle: Well, that's how that picture is taken. That's one difficulty. You have to realize that everything keeps moving everyday and -- Commissioner Suarez: No. I understand that. Mr. Nagle: That's what we look at. That's why we meet quarterly and if it's necessary, we would meet more often just to look at investments. Chair Sarnoff All right. Gentlemen, any further discussion on this item? Hearing no further discussion, it is a resolution andl think it is as modified, the 2.2 million. All in favor, please say aye." Commissioner Dunn: Aye. Commissioner Gort: Aye. Vice Chair Carollo: Aye. Chair Sarnoff Aye. Commissioner Suarez: No. [Later..] Commissioner Suarez: Mr. Chairman, first, I'd ask you for a little bit of latitude, ifI can make a statement on the prior item? Chair Sarnoff Sure. Commissioner Suarez: I had a firefighter in my office today for a very long period of time. Andl had to look at him in the eyes andl had to justify why certain decisions were made and it wasn 't easy because the person was being very genuine and was asking some very good and tough City ofMiami Page 71 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.11 10-00942 General Employees and Sanitation Employees Retirement Trust questions. And so going back to the last item, the FIPO administrator admitted on the record that the legacy loss for this year was $65 million. That's 65 percent of our deficit, 65 percent of our deficit. That would have funded all of our salary cuts. In other words, we wouldn't have had to make any salary cuts. Or that would have funded all of our pension cuts and half of our salary cuts or all of our -- 'cause it was $80 million. So that's 75 percent of the pension and the salary cuts are right there. Seventh five percent of those cuts are right there. And so I'm sorry that I'm a little adamant about it, butt had to talk to somebody for two hours today that had a lot of good points and good issues. And so I wanted to clam the record for that. 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' 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 10-00942-Submittal-GESE. pdf Motion by Commissioner Dunn II, seconded by Commissioner Gort, 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-10-0430 Chair Sarnoff BH.11 Ron Silver: Mr. Chairman. Chair Sarnoff Mr. Silver, you're recognized for the record. Mr. Silver: Thank you. Ron Silver, general counsel for the City ofMiami General Employees' and Sanitation Employees' Retirement Trust. This is a resolution of the Miami City Commission, with attachments, approving and adopting the annual budget of the City ofMiami General Employees' and Sanitation Employees' Retirement Trust for the fiscal year commencing October 1, 2010 and ending September 30, 2011, in the amount not to exceed $3, 342.263 million, excluding normal costs, to provide for the administration of the GESE (General Employees' and Sanitation Employees) Retirement Trust fund. Chair Sarnoff All right. Let me open up a public hearing. Does anybody from the public wishing to be heard on BH.11, please step up. Hearing none, seeing none, coming back to this Commission. Can you point me to the direction of what was your 2009-2010 budget? Mr. Silver: I believe it was 2.8 million. Chair Sarnoff And what are you asking for now? City ofMiami Page 72 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Silver: Three point three. Chair Sarnoff Three point three? Mr. Silver: Yes. Chair Sarnoff And this is the one where the Mayor has said that he does not recommend the additional 500,000? Mr. Silver: And ifI could a moment to explain why we requested the additional 500,000? Chair Sarnoff Go ahead. Mr. Silver: Okay. We prepared our budget in May as a determination of what was necessary to properly administer the fund. I guess two weeks ago, you passed an ordinance which required changes to be made to how much benefits -- how much benefits? -- yeah, how much benefits each individual would get when they retire. We asked our actuary what it would cost to do the necessary actuarial analysis to bring us up-to-date and that was subsequent to when we presented our budget of 2.8. Our actuary gave us an estimate as to that. In addition to that, our PensionGold system, which is our software system, needs to be modified so that when individuals do retire, we can adjust those figures pursuant to the software requirements. I don't understand all that, butt know it has to be modified. And we asked them for an amount that they thought would be necessary to modin, the system, and they gave us that amount. So those both totals came to pretty much to $500,000. That's what's necessary to properly administer the fund if the ordinance is going to stay in existence, which you approved earlier, so it is in existence. And we have to do that. Otherwise, we can't serve the members of our retirement fund with the proper analysis and the proper actuarial figures that are needed, so that's the explanation of that. And if you don't want to give us that, then we'll just fight it out. Chair Sarnoff I'm not -- I'm a little curious because I've heard members of this Commission when they're asking about staff salary and wages and they get a general line item. They want to know what that line item is. I don't see any breakdowns here yet. I see a $1,166,152 in total personal services andl don't see a breakdown. Mr. Silver: Okay. Chair Sarnoff And you know, I'm curious now why there's no breakdown. I didn't ask for one? Oh, I'm sorry. I thought when all the Commissioners asked for total breakdowns, they meant total breakdowns, so I apologize ifI wasn't clear. Mr. Silver: Well, I don't think that's the case, but let me just indicate what I think it is, all right. I think your budget people go over what we submit to them, okay. Chair Sarnoff Yeah, but correct me if I'm wrong, Mr. Manager, you are recommending us to reduce this by a half a million dollars? Mayor Tomas Regalado: What we are saying is that this agency has not taken the cut requested to every department and agency in the City ofMiami. And what we're saying is that not even the Administration knows if this half -a -million -dollar number is the right number because it was given like a few days ago, so this is why I think it's important. And you know, you guys have been struggling all day here with the issues of money, andl really think that we should do the right thing for the people that are getting pension and they need to know their benefit. But we just cannot happily approve any request and they have even taken a cut. They have not even satisfied the request of the legislative body by giving line item and expenses and all that, so -- City ofMiami Page 73 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Silver: May I respond? Mayor Regalado: So -- Mr. Silver: May I respond to that? Chair Sarnofff. Sure. Mr. Silver: Okay. Mr. Mayor, I appreciate what you said and somewhat you did. But you know, my point on the $500, 000 item is -- you just took this up on first reading two weeks ago, all right. You just approved it today, okay. So we asked our professional people -- andl specifically requested the administrator to send that amended budget in so you'd have it to deal with so we wouldn't, you know, be a surprise to you that we're asking for another 500, 000. But as soon as we found out that you passed that and then we asked our professional people what it would cost to amend the system, you know, the software system and all that -- and that stuffs expensive, and usually PensionGold comes in at a low price when we ask for an estimate. And by the way, let me just say this, at our meeting this Thursday, we're going to review that whole PensionGold system to see if we could start anew and it might be cheaper to do it rather than just amend this thing. We're going to take this up Thursday. I don't know what the board's going to do, but would assume 'cause I can't speak on what they're going to do. Chair Sarnofff. Mr. Silver, I can tell you thatl think the DDA (Downtown Development Authority) board is a professional board. I could think of a couple of boards that I consider to be professional boards. I consider the Bayfront Trust board to be one of the most professional boards. Yet, I've watched the Vice Chair go line item through line item and demand specificity that -- Mr. Silver: Well, Mr. -- Chair Sarnofff. Let me finish. Mr. Silver: Okay. Chair Sarnofff. -- he can understand. Now I got to tell you, the budget I'm looking at right here smacks of -- well, in one respect, you're going down in personal services from last year. On the other respect, you're going up in terms of professional services. This is not really understandable. I mean, I could see how the Mayor and the Man -- I don't know if the Manager shares his thoughts, but I could see how the Mayor -- it doesn't even justify or demonstrate the $500,000. Mr. Silver: Well, no. And we have back-up material to do that. Chair Sarnofff. Well, it -- Mr. Silver: My point to you, Mr. Chairman, is this. We submit the budget to the City, all right. If the City wants more detailed information, okay, they can ask us for it and we'll be happy to give it to them. We've been doing this this way all these particular years. Even when you voted on it the last couple of years, all right, nobody brought this issue up. If you wanted more detailed information or we weren't giving you what you thought you needed, then let the City ask for it and we'll be happy to give it in more detail. Chair Sarnofff. Well, I apologize. I apologize for not being clear andl apologize for not being as explicit as the Vice Chair. I can't vote on this until see the line item budgets. City ofMiami Page 74 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Suarez: Mr. Chairman. Mayor Regalado: Andl can say, Senator, that throughout the years, yes, this is the way. You come in and the Commission approves, but this is a different year. This is a bad year. This is a bad year for employees. This is a bad year for the City. This is a bad year for the residents. So it has to be a bad year for you too. And -- Mr. Silver: Well -- Mayor Regalado: -- it is very simple. Mr. Silver: -- andl don't mind that. But if it's going to be a change in policy, somebody ought to tell us about it. And if you want to get more information, you ought to advise us that you need more information. I don't have a problem with giving you anything you want, but why -- you change the rules in the middle of the game? We submitted the budget back in May and nobody asked us for more detailed information 'til this very minute. So you can't blame us for not giving you more detailed information if you didn't ask for it. It's readily available to you. Chair Sarnoff. Andl do feel duly admonished. Thank you. Commissioner Suarez: Mr. Chairman, please. Mayor Regalado: No. But what I'm -- Mr. Silver: I'm not trying to admonish you, but I'm -- Mayor Regalado: No. Mr. Silver: -- just trying to tell you the facts. Mayor Regalado: But the half a million dollars came just recently, and you may say it's because the changes made by the City. I don't know why the Administration did not request that you will reduce your budget by 5 percent, which was the same thing requested to every agency, even the Parking Authority, even the Trust, the DDA (Downtown Development Authority), every -- CRA (Community Redevelopment Agency). Every agency that received general fund money was requested to reduce by 5 percent, as every department. And the $500, 000 is, I know, because of the new situation, but we don't know if that is what is necessary. So this is why I had concerns because I'm -- I sat where they sit now andl know how difficult this is to face the people that we see every day and work with them and hope that they work with us as a Commission district representative and it's very painful. And so we have to request from everyone not only the information, but also the cuts. Chair Sarnoff. Let me go to Commissioner Suarez and then the City Manager. Commissioner Suarez: Thank you, Mr. Chairman. Thank you, Mayor. Thank you, Senator. [Later..] Commissioner Suarez: Now ifI may now address the senator. Chair Sarnoff. Go ahead. Commissioner Suarez: Senator, I want to thank you. You came to -- you came to my office this morning and we talked about the same issues that I had with the administration of the FIPO fund. City ofMiami Page 75 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Silver: Yes, we did. Commissioner Suarez: And the audit -- the same audit that referred to before taking it a three-year snapshot of the fund management, the loss for that fund was $111, 800, 000 approximately. Mr. Silver: Right. Commissioner Suarez: Okay. The audit found that there was an inadequate monitoring of the investment managers, okay? Our audit indicated -- andl'm reading from the audit verbatim -- that six investment managers appeared on the watch and probation list in the period October 1, 2007 to September 30, 2009. Two of the six were not properly monitored. And it says here that two of the ones that were on the probation list were not removed, one of them being Atlantic Capital and the other one being Blackrock. Mr. Silver: Yeah. Commissioner Suarez: Okay. And Blackrock, ifI -- andl may have misspoken when I said Atlantic Capital because I think Atlantic Capital was terminated in 2008, April 2008. But Blackrock, which we both expressed -- Mr. Silver: Right. Commissioner Suarez: -- a major concern about -- Mr. Silver: Yep. Commissioner Suarez: -- okay, is an underperforming asset manager -- and this is going to freak people out when they hear this -- that has literally lost just on this -- just this asset manager has lost $3.8 million this -- I'm sorry -- in the three quarters following June 2009, September 2009, December 2009, and March 2010, this company alone has lost $3.8 million. We've tried to fire them. And they're holding the money, our money hostage, okay. So at the very minimum -- and the -- and by the way, the GESE fund -- andl'm not trying to pick on one fund versus the other fund, but you guys did respond to this audit and explained that, okay. So you know, these have real consequences for our employees. They have real consequences for our residents. Andl want to make everyone aware of what those consequences are so that they can understand why it is that we don't have any money. Mr. Silver: Let me -- ifI may respond, Mr. Chairman, to that. On the Blackrock situation, which I expressed to you that I had concerns about too 'cause I didn't like -- that's our real estate that we're investing in. They take the real estate and they invest it. It's a small portion of the fund but nevertheless, it's significant money. MetLife was our original investment advisor. Blackrock took over MetLife. In MetLife, I believe -- and Hilda, if I'm wrong on this -- in the MetLife, they didn't have a queue, what they call a queue. I'm not sure exactly about that. But they didn't have a queue. When Blackrock took over, they had a queue. And I'll tell you, I take the blame when -- I may have not read that, you know, properly when I reviewed the contracts, so I take the blame for that aspect of it, if there's blame to be asserted; that ifI didn't catch it, that's my fault 'cause I'm the one that's supposed to catch those things. So I -- you know, I don't know. But in the Blackrock situation, they have a queue, and the queue says they can't disperse any of the money until they reach a certain amount and the board has to, you know, approve that. The board of Blackrock has to approve them dispersing the dollars. So they're not dispersing any dollars to us. But in relationship to our discussion today, I am reviewing the legal aspects of that. And if we can't sue them -- I'm going to report back to our board on Thursday, pursuant to our conversations, and advise them on whether we think we could sue to do something about that. City ofMiami Page 76 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 I'm not very (UNINTELLIGIBLE). Commissioner Suarez: Mr. Chairman. Chair Sarnoff Go ahead. Commissioner Suarez: Charlie, I have a question for you, Mr. Cox. Charlie Cox: Yes. Commissioner Suarez: Andl don't know if you're the appropriate person to answer this question; if you have your actuary or however. What is the legacy payment that the City is making this year? In other words, aside from the -- Mr. Cox: Seventeen point two million. Commissioner Suarez: Seventeen point two million. No, no. You don't -- he doesn't have to get up; I take your word for it. Mr. Cox, I take your word for it. I just want to illustrate when you add the 17 million and the 65 million, guess what you have? Eighty million. Guess what we cut this year? Eighty million, okay. So the losses that we're paying for as a city from our general fund had we not had those losses, okay, we could have not reduced salaries and we could have not reduced pension. Mr. Cox: Can answer that? Commissioner Suarez: Of course. Mr. Cox: Okay. Well, number one is there are a lot of things that we could have done or should have done or didn't do. And you know what; I've always been honest to everybody that sits up here. I may have a bad temper, but I'm honest. I've never lied. But you know what you're forgetting about too? If we would have never saved $200 million in the Gates settlement with the City ofMiami, we'd have $200 million more. And to sit here -- Commissioner Suarez: Can I just on that issue? Mr. Cox: Absolutely. Commissioner Suarez: Just on the issue of Gates, just one question. In the year 2003, was our pension fund fully funded? Mr. Cox: Was it fully funded? Commissioner Suarez: Yes. In the year 2003. Mr. Cox: It was probably overfunded. Commissioner Suarez: It was overfunded. Mr. Cox: Andl have, which I'd love to put on the record, what our returns have been for the years. But I mean, all of these numbers we would make ready available to you. Carlos knew about all of these things, and I've never lied to him, and now I'm wondering what have you been told. Because you know what, every single thing we've done has been in the open. You get -- the City gets these books, guys. If he's not providing them or whoever's sitting up there at whatever time aren't providing them to you, then that's not our fault. They're giving them to them. We have every one of our experts every time here to answer any questions you want to. Listen, I City ofMiami Page 77 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 wish -- and you know what, I'll do a comparison any day of the week with our money managers against a benchmark, and that's how you're supposed to base it, against a benchmark. Do we have some bad years? Yes, we do. But that's worldwide. All of you, look in your own pockets; see how much you all have lost in the market. Commissioner Suarez: I don't have a lot of money, so I don't have much of it in the market. Mr. Cox: Well, I don't either, other than my pension. Commissioner Suarez: Okay. But my issue is -- andl think there's a distinction between the two funds. There -- you took action or tried to take action on removing your managers that were underperforming. Mr. Cox: Play -- I'm sorry, Commissioner. I won't play that game (UNINTET,T IGIBT,F). I won't. I never have. Commissioner Suarez: It's not about playing the game. It's not about -- Mr. Cox: But -- Commissioner Suarez: -- it's a fact. It's either -- you either did or you didn't. Mr. Cox: But you know what (UNINTELLIGIBLE) -- Commissioner Suarez: It's not about playing a game. I'm not playing a game. Mr. Cox: (UNINTET,T IGIBT,F) find out -- Commissioner Suarez: Nobody here is playing games. Mr. Cox: (UNINTET,TIGIBT,F) returned, but there are years their refunders outreturned [sic] ours. Andl used to go with Shorty (UNINTELLIGIBLE). Commissioner Suarez: I'm talking about -- all I'm talking about is you -- Mr. Cox: (UNINTET,T IGIBT,F) -- Commissioner Suarez: -- had an underperforming manager -- Mr. Cox: (UNINTET,TIGIBT,F). Commissioner Suarez: -- and you tried to get rid of that person. And the consequence of not doing that is they continue to underperform, which continues to cost the City money, which continues to hurt them. Mr. Cox: Yes. Andl understand that. But if we could have done it and as soon as we can do it and as soon as we can come back, we will do it. I mean, we want the City to pay zero dollars, just like you're asking for. We absolutely do. And there have been plenty of years the City has paid zero dollars or we've given you credit back. Mr. Silver: IfI might just amplin, on that, Mr. Chairman? I --it's really a judgment call, okay, 'cause we've been in that situation where a manager has not performed and we thought we ought to fire him, and we waited another three months, and they made the money back. See, once you fire a manager, then they have to sell usually not all of it, but you know, some of it. Sometimes the new manager will take over what they have. But once you realize that loss, that's a realized City ofMiami Page 78 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 loss, okay. So you know, it's nice andl appreciate what you're saying, but sometimes you've got to use a judgment call. And Mr. Chairman, I apologize ifI thought -- if you thoughtl was admonishing you because that's not my style, andl know I raise my voice, but -- you know, I was in charge of an $18 billion budget on healthcare appropriations in the Legislature. Andl appreciate what you're doing, andl know your need for information. Andl e-mailed (electronic) everybody last week asking for a meeting to explain what the $500, 000 was all about. Mr. Mayor, I even sent you one, but the e-mail came back. I don't know; maybe you got a different e-mail address, but every -- you're the only one that the e-mail came back on. Commissioner Suarez was the only one that responded to me about, you know, having a meeting, and that was last week. So I wanted to explain all this to you. It wasn'tI was trying to hide something, 'cause I know andl appreciate so much -- I mean, you want to talk about tough decisions, you -- we were required to cut 5 percent. We went through this thing at the healthcare budget. We need a cut of the healthcare budget, okay, when you talk about preferring one disease over other. We're going to fund Leukemia this year, but we're not going to fund Parkinson's disease and all that stuff so that's -- I appreciate what you're doing. Chair Sarnoff. So what did you do? Mr. Silver: I refused to cut and went back up to the president of the Senate and she voluntarily gave me back all the money that we were supposed to cut. Carlos A. Migoya (City Manager): Mr. Chair, ifI can -- Chair Sarnoff. Yes, sir. Mr. Migoya: -- make a point of clarification. Chair Sarnoff. Yeah. I know you wanted to be recognized. I apologize. Mr. Migoya: No problem. The reason why I asked the Mayor because it's -- as I understand it -- andl clamed this with the City Attorney -- the budgets for the retirement funds do not come through the City Administration. They go directly to you. My conversation that -- as I heard it -- I think it was Friday or Monday, I can't remember, of last week. You know, we met for the budget meeting a week ago Thursday, which is ten days ago. By Friday or Monday, I heard that GESE was asking for the extra half a million dollars, to which I called Charlie and confirmed it. And I told Charlie at the time, listen, you've gone -- the City Commission has gone and asked you guys to reduce. If you're looking for an additional half a million dollars, which, you know, he explained everything that you're hearing right now, that there's nothing said, you guys need to get in front of the Commission meeting. Following that, Senator Silver was here last Thursday, right -- Mr. Silver: Yeah, right. Mr. Migoya: -- at the Commission meeting. To which I said to Ron the same thing said to Charlie: it's not for me to tell you what you need to do or to make any recommendations as to -- for you to discuss that directly with the City Commission. However, this is where they were. This is where you are. If nothing else, you need to get in front of them, which is how Senator Silver says he sent the e-mail out to everybody. So I just want you to understand that it's not like we reviewed this and didn't make -- we did not review these budgets. It is not our position to review these budgets, nor to make any recommendations. All we -- alll did with them is, at the direction of the Mayor, communicate with them the direction that you walked out -- we walked out of here whatever that day was, the first budget meeting, of saying we're looking to get a 5 percent reduction, and that's all we did in the reaction to their -- that's -- so I just wanted to give you an update on that. City ofMiami Page 79 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Silver: And just to clam, he's right, exactlywhat he said to me. But I sent out the request, the e-mail the Friday before the Thursday -- last Thursday's meeting, all right, knowing that you'd probably want to get some explanation about it, so I don't know what else I can do. Chair Sarnoff All right. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Vice Chair is recognized. Vice Chair Carollo: Thank you. I have various things. First of all, I didn't receive the e-mail. I'm not saying that you didn't send it. I just -- I can tell you, I did not receive the e-mail. Keep in mind that from the last budget hearing, we've had two full Commission meetings and a CRA (Community Redevelopment Agency) meeting. However, in the last Commission meeting, I remember that in the break you came up -- Mr. Silver: Yeah. Vice Chair Carollo: -- to see me. Mr. Silver: Right. Vice Chair Carollo: Andl said give my office a call and let's set up a meeting so we could get together. I specifically has asked my staff every day if you have called, and they have told me no. Mr. Silver: Well, I couldn't -- that was Thursday. The Commission meeting -- Vice Chair Carollo: That was Thursday's Commission meeting. Mr. Silver: -- was Thursday, all right. I couldn't meet Fri -- Vice Chair Carollo: Wasn't that long ago. Mr. Silver: -- Friday, so I -- you know, I didn't call. But you did say that. I -- Vice Chair Carollo: I did say that. So I think, you know, it's a little deceiving that you sent e-mails and we didn't meet with you and so forth 'cause I -- well, on Thursday when you came here, on the break -- and as a matter of fact, I'm sure it's only video 'cause it was still running -- you came up andl say, give my staff a call and let's get together. Mr. Silver: That's not an issue. Vice Chair Carollo: And you said sure. Mr. Silver: I admit that. I admit that you did that. Vice Chair Carollo: Okay. Mr. Silver: That's not a problem. I just couldn't meet on Friday; I have other, you know, other appointments, I mean. Vice Chair Carollo: Question. You mentioned as far as us approving this on first reading -- Mr. Silver: Un-huh. City ofMiami Page 80 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: -- and it's not the first time that I approved something on first reading and vote against it on second reading. Mr. Silver: Yeah. Vice Chair Carollo: As a matter of fact, I remember asking the City Attorney not too long ago that just because I approved it on first reading, does that means that I'm going to rubberstamp second reading. The answer was no. When we approved it at first reading, I believe we approved a budget of 2.8 million. You're coming before us now for a budget of 3.3 million so it's a different budget from what we originally approved. Mr. Silver: Well, that's the extra 500, 000. Vice Chair Carollo: Exactly. Mr. Silver: Yeah. Vice Chair Carollo: So you're coming -- so -- and the reason why I'm saying that is because it's a totally different budget. I mean, from 2.8 -- Mr. Silver: Only because of what you did at that meeting. Vice Chair Carollo: Of what we did in that meeting. Meaning? Mr. Silver: You approved the ordinance at that meeting. I'm not going to ask for something before you approve an ordinance. I mean, I don't know what you're going to approve. So you approved the ordinance at that meeting. Right after that we asked our professional people what it would cost in order to comply with all the requirements that we have to comply with. Vice Chair Carollo: So you're saying that the imposition meeting meant nothing, until we actually passed the ordinance? Mr. Silver: Well, I could ask -- I hope you understand this. Vice Chair Carollo: Well, let me ask -- Mr. Silver: I can't ask them to give me a figure on something that you haven't at least passed on first reading. I mean, what am I supposed to do? Assume and read your minds on what you're going to pass? I don't think so. Vice Chair Carollo: No. I just -- I mean, what -- it seems to me -- andl could be dead wrong. You know, it's just speculation on my part -- that where you're asking for the 500, 000, a large majority, or at least 300,000 of that is for machinery and equipment. Mr. Silver: That's software. Vice Chair Carollo: Software. And it seems to me that we had an issue with the FIPO (Firefighters and Police Officers) plan 'cause I asked why was the big increase, and they say software. Now I could be dead wrong, but I think that may have been a, you know, little light bulb that went off and say, hey, you know what, maybe we could ask for it too, you know, and that's when you ask for it. I could be dead wrong, but -- Mr. Silver: You are. City ofMiami Page 81 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: -- that's what -- that's the perception that I'm seeing, and you're asking for more money. Mr. Silver: You are wrong. You're wrong. Vice Chair Carollo: You know, as -- so I don't think it really has to do anything with when we passed the ordinance or not or on first reading or so forth. I think, more than anything, you were just looking at what FIPO was doing and guess copying. So you know, I have a problem with that because I'm really thinking do you really need this money. I mean, is it because hey, if they're doing, we might as well do it? Or do you really need this new software? Mr. Silver: Well, you're dead wrong. You asked me if you're dead wrong. You're dead wrong. Vice Chair Carollo: I didn't ask -- Mr. Silver: It had nothing to do with the FIPO asking for whatever money they asked for. We don't pay attention to what they ask for, all right. I can tell you that right now, okay. What we did was we reviewed what you passed at that meeting, and we said okay, if this ordinance goes into effect now, now we have to find out how much it's going to cost us to comply with the actuarial reports and the software requirements. That's all we did. I don't even know -- and this is the first time I'm even hearing about FIPO. I don't pay attention to what they do. Maybe they don't like that, butl don't pay attention to what they do. We're independent of FIPO. Vice Chair Carollo: Well, I didn't askyou ifI was dead wrong. I made a statement that may be dead wrong. I didn't askyou whether was or not. Mr. Silver: I was just confirming that you were. Vice Chair Carollo: Well -- Mr. Silver: Well, I don't know what else to do, I mean, when you make a statement like that. Vice Chair Carollo: -- you know, again, maybe I am, but then again, maybe I'm not, and -- Mr. Silver: That's true. Vice Chair Carollo: -- I just, again, see how it took place, and it just seemed skeptical to me that as soon as we finished speaking with FIPO, that's when you bring up that -- actually, it wasn't even at the meeting. It was after we requested the deduction that you came up and said, oh, no. Actually, we want an additional 500, 000. So it was even at that meeting. Now with that said, I have a question. Going to the City ofMiami CAFRs (Comprehensive Annual Financial Reports) for 2009, I'm seeing that the benefits from FIPO is about 85 million and for GESE (General Employees & Sanitation Employees), 54 million; yet, your administration is requesting or working with a million dollar more in funding. Why is that? Mr. Cox: The administration is a million dollars more. Vice Chair Carollo: Why? Mr. Cox: Because we have a lot more members. Vice Chair Carollo: But -- Mr. Cox: And you know what? And how many people have ran down to the pension board and asked for numbers? We did the 64 points. These people have been working around the clock. City ofMiami Page 82 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 We have had a hundred people -- even in a board meeting that we didn't end up finishing, there were 110 people. I've worked -- I went down there that weekend with everybody. This -- the staff is working around the clock because of nervousness. I mean, there's -- Vice Chair Carollo: I under -- Mr. Cox: -- nothing -- Commissioner Carollo, there's nothing we're hiding. We'll give you any information you want, but even the agenda item was deferred. It wasn't turned down; it was deferred -- Vice Chair Carollo: As a matter offact -- hold on. Mr. Cox: --from the last meeting. I mean, everybody's been going through a lot, andl understand that, but our cuts are astronomical from what we got put through. Vice Chair Carollo: Give me a second, Charlie, please. Mr. Cox: Sure. Vice Chair Carollo: Let me -- Mr. Cox: Am I wrong? Vice Chair Carollo: No, you are not wrong. However -- andl understand they're working around the clock and so forth -- I still have the question: why does it take you all a million dollar more? And as a matter offact, now when we're going to start leveling it off a little bit, well, you increased it $500, 000 to make sure that you're, again, within a million dollar level, you know, higher than FIPO, andl don't understand why it should take you all, you know, that much more. The last thingl want to say is the Mayor said that this was a bad year -- it's a bad year for all of us. I agree. However, I do disagree that in the good years, we're going to be any less thorough. When I ran, one of the things that I mentioned -- can't say I promised because I don't make much promises. However, I did say that was going to bring accountability to this Commission, andl think this is the first steps where people are starting to see it. And it's not just on the bad years; it's going to be every year. And yes, you're right, this may be the first year that we go to these details. We're not going to rubber-stamp all these budgets. And again, it's starting to bring accountability to the City ofMiami and that's what we're doing. Mr. Silver: Mr. Chairman, may respond? Chair Sarnofff. I don't know if he asked a question. Mr. Silver: Okay, then I won't respond. Whatever you want me to do. I'm easy. Chair Sarnofff. I think he just made a statement as to what he's going to do and -- Mr. Silver: Well, I was going to pledge to him -- I'll tell you what was going to do and then you can tell me whether I can say it. Chair Sarnofff. You want to make a proffer and then -- Mr. Silver: Yeah, right. Chair Sarnofff. -- we'll listen to your proffer? Mr. Silver: Yeah, right. I pledge to you, Commissioner Carollo, and every one of you up there, City ofMiami Page 83 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 all right -- I'll meet with you personally, okay. You tell me what detail you need, what you want, and I'll make sure you get it. Now we talked today about maybe starting the process earlier, maybe starting in January or whatever. I pledge to you, personally, all right, that I will sit down with you. I'll find out what you want andl will hand -deliver the stuff to you -- andl could say the same thing for the Mayor -- whatever you want. And if it's not satisfactory, you tell me and I'll go back again and get the information. Commissioner Suarez: Mr. Chairman. Chair Sarnoff Commissioner Suarez is recognized. Commissioner Suarez: And what pledge didl make to you? Mr. Silver: What's that? Commissioner Suarez: What pledge didl make to you? Mr. Silver: I'm -- Commissioner Suarez: The same thing. Mr. Silver: I met -- yeah. Oh, absolutely, yeah, yeah. Commissioner Suarez: So -- Chair Sarnoff All right. Mr. Silver: I'll be happy -- Chair Sarnoff I think we had a motion andl think we had a second. Did we not? We did not. Pamela L. Latimore (Assistant City Clerk): No. Chair Sarnoff There's no motion. Ms. Latimore: No motion. Chair Sarnoff Okay. Does anybody wish to make a motion on BH.11 ? All right, then it dies through no action. Mr. Silver: Okay. [Later..] Mr. Migoya: Mr. Chair. If we may, can we readdress -- what's the number? -- the GESE trust? Chair Sarnoff You had no action on BH.11. Mr. Migoya: I know we did. Can we --? Mr. Mayor. Chair Sarnoff Why would you get action now? Mayor Regalado: I think that they're willing to come before you with a reduced budget, you know, the 5 percent that was requested to every department. And they're willing to present to you a reduced budget, still with the half a million dollars, though. City ofMiami Page 84 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff Wait a minute. With the half million? Mayor Regalado: Huh? Mr. Migoya: The idea here is -- first of all, administratively, we need those agencies, especially with the fact that it's fully funded by us and Gates and so forth -- to have it done by September 30. The -- they will quantifi, what these numbers are from an actuarial and software, which we believe is accurate. But they've --from the 3.3 million -- whatever the number is. Chair Sarnoff It was 3.3 million. Last year it was 2.8 million. So you're taking 5 percent of 3.3 million, and what is that reduction? Mr. Migoya: The idea would be -- for the 3.3, it would reduce $150, 000, so you'll be talking about $3,192, 000, I believe. Chair Sarnoff And you've seen some documentation that satisfies you? Mr. Migoya: They are willing to come -- to live with that $150, 000 number reduction. Chair Sarnoff That's not my question. My question -- Mr. Migoya: No. You mean on the software? No, I have not. But I'm saying -- Chair Sarnoff So -- Mr. Migoya: -- they're willing to document that and be able to show us in the fu -- in the next several days. But at least to get this passed subject to the documentation on -- which they will go back and verify what the software is and the actuarial information. Chair Sarnoff So if I'm understanding -from you, you're asking us to do this because there is a Gates issue? Mr. Migoya: We do have to --from a Gates standpoint and everything, we do have to approve a budget for them. The idea -- they are saying that the $500, 000 is an accurate number that they could show us. They're going to go review it again. They will show us what those -- the documentation to that and what the best that we could do. And we -- andl -- Chair Sarnoff And you, as the City Manager, are recommending us to go from 2.8 million to $3,192, 000? I need to hear that. Mr. Migoya: Yes, I am, subject to the -- which is $150, 000 reduction. Chair Sarnoff I can't vote subject to anything. Mr. Migoya: And sub -- well, yes, and subject to them providing the information on the software and the actuarials. Mr. Silver: I can do that tonight, if you want. We have it here. Chair Sarnoff No. I want to hear from my Manager's mouth, a guy that I trust, that he is recommending -- Commissioner Gort: He doesn't trust you. City ofMiami Page 85 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Silver: Yeah, right. Chair Sarnoff. No, no, no. It is different. The senator is a little different. I mean, this is the guy that, theoretically, this board can hire and fire. So I want to hear from him that he is recommending $3,192, 000. I can't vote subject to anything. You have to come to your own satisfaction. I need to hear from you an unqualified 'Please do this." Mr. Migoya: I think we should andl recommend that we come up with the 3,192, 000 as a budget for GESE. Chair Sarnoff. All right. Commissioner Dunn: Mr. Chairman. Chair Sarnoff. I almost called you a senator. Is there anything in your future I should know? Commissioner Dunn: No, sir, not after tonight. Let me -- Chair Sarnoff. Not after tonight. Commissioner Dunn: -- just clarify something, andl think you said -- and I'm not the great accountant here. But you said it was 3.2. It'll be more like 160, 000, if I'm not mistaken. Five percent of that would be more like 160 and some change. Am I correct? Mr. Migoya: Instead of 150, you mean? Commissioner Dunn: Yes, sir. Mr. Silver: We'll agree to that. Commissioner Dunn: No. Mr. Migoya: I guess it's 160, 000. Commissioner Dunn: That's what it'll be. Chair Sarnoff. You know, I -- you know what, we wouldn't be -- we'd be impressed when the Vice Chair would do that, so -- Commissioner Dunn: I'm learning from him. Chair Sarnoff What's the number you want --? Mr. Migoya: This is actually the scary thought when everybody's learning from the -- Commissioner Dunn: That's a compliment. Chair Sarnoff. No, no. Don't take the bait. It'll be a longer -- Commissioner Dunn: But 3 -- 5 percent of -- Chair Sarnoff. -- night than it needs to be. Commissioner Dunn: -- of 3.2 million is about 160, 000. City ofMiami Page 86 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoft What's the number you want us to approve? Mr. Migoya: If we're talking about an extra ten, we're talking about three million one eighty-two. Mr. Silver: That's fine. Chair Sarnoff So your number is still firm at three million one ninety-two? Mr. Migoya: One eighty-two. Chair Sarnoff One eighty-two. I'm sorry; three million one hundred eighty-two thousand. Mr. Silver: Yeah. That's fine. Chair Sarnoff All right. So BH.11, you're now getting an administration recommendation endorsed by the Mayor? Mayor Regalado: Well, I'm -- you know, it's -- I think it's important to show to the people watching and to the people here that the work that you're doing here is work. And what I mean is that you stood your ground, and they went out for a Coke and right there, we save $160,000. And the fact that some departments and some agencies can reduce their budget on a heartbeat by 5 percent tells you that there's still room to cut in the City ofMiami. And that's just my -- now, do I recommend? The City Attorney says that Gates is in the middle of this situation, and yes, I have to agree with the City Manager and the City Attorney that we need to provide this funding. I rather not, but it's something that we have to do. Chair Sarnoff So Madam City Attorney, just so I can go on the record with this Commission, I think we have nine lawsuits now filed against us. You're not looking for ten? Ms. Bru: No, I'm not looking for the tenth. Chair Sarnoff Okay. So you're recommending to us that based on Gates, that we approve $3,182, 000, and that will keep us from going to our tenth lawsuit? Ms. Bru: Gates does put an affirmative obligation on the part of the City to approve their budget in the same manner that you approved the MPA (Miami Parking Authority) and the DDA's (Downtown Development Authority) budget, which means that it comes directly to you, not through the Manager, but you have a obligation to fund their administrative costs. Chair Sarnoff All right. Let me see ifI can get a motion. Does anybody --? Commissioner Dunn: So move. Chair Sarnoff You got a -- Commissioner Gort: Second. Chair Sarnoff -- motion by Commissioner Dunn on BH.11. Is there a second? Commissioner Gort: Second. Chair Sarnoff Second by Commissioner Gort. Let me open up to a public hearing. Anybody from the public wishing to be heard on BH.11, as modified now, please step up. Hearing none, seeing none, the public hearing is now closed; coming back to the Commission. Discussion, City ofMiami Page 87 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.12 10-00943 gentlemen? Commissioner Dunn: Mr. -- Vice Chair Carollo: I just -- Commissioner Dunn: Go ahead. You go first. Vice Chair Carollo: Thank you. Chair Sarnoff. Vice Chair. Vice Chair Carollo: Thank you, Mr. Chairman. I just want to say that, you know, ifI vote for this, I'm voting under, you know, management's advice, especially with regards to the Gates lawsuit. Thank you. Chair Sarnoff. Commissioner Suarez? All right. Commissioner Dunn. Commissioner Dunn: Pretty much ditto, but I will say it cost us, what, about 200,000 -- 200 million, pardon me, before. Andl think the -- thanks to our colleagues, I think the message that is going out that pretty much there are no sacred cows. Chair Sarnoff. All right. Any further discussion, gentlemen? All in favor, please say aye." The Commission (Collectively): Aye. Chair Sarnoff. Unanimous. Nice, Mr. Manager. There are people that trust you. All right, we Mr. Silver: He trusts me. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. Senator, I'd just take it and walk away, as they'd say. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. Yes, sir. You're recognized. Vice Chair Carollo: I'm going to step out for about two or three minutes to -- Chair Sarnoff. You want to take a break, guys? Vice Chair Carollo: Yeah, five minutes or so. Just -- Chair Sarnoff We're not five-minute guys. Fifteen -minute recess, but a really 15? If say five, it'll be fifteen? All right, five-minute break. Vice Chair Carollo: Thank you. RESOLUTION City ofMiami Page 88 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 General Employees and Sanitation Employees Retirement Trust BH.13 10-01028 Miami Parking Authority 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 THE FISCAL YEAR BEGINNING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011, IN THE AMOUNT NOT TO EXCEED $138,216, AS STATED HEREIN. 10-00943 MEMOS.pdf 10-00943 LEGISLATION. pdf 10-00943 EXHIBIT.pdf 10-00943 Legislation 9-27-10.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-10-0428 Chair Sarnoff BH.12. Ronald Silver: BH.12, a resolution of the Miami City Commission, with attachments, approving and adopting the annual budget of the City ofMiami General Employees' and Sanitation Employee's Excess Benefit Plan for the fiscal year beginning October 1, 2010 and ending September 20, 2011, in the amount not to exceed $138, 216, as stated herein. Vice Chair Carollo: So move. Chair Sarnoff All right, there's a motion by the Vice Chair, second by Commissioner Dunn. Let me open up a public hearing. Anybody wishing to be heard on BH.12, please step up. Hearing none, seeing none, coming back to the Commission. Discussion. Hearing no discussion, all in favor then, please say aye." The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE AMENDED ANNUAL BUDGET OF THE DEPARTMENT OF OFF-STREET PARKING, IN THE AMOUNT OF $1,954,120, EXCLUDING DEPRECIATION, ATTACHED AND INCORPORATED, TO PROVIDE FOR THE OPERATION OF THE GUSMAN CENTER FOR THE PERFORMING ARTS AND THE OLYMPIA BUILDING, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30, 2010. 10-01028 Parking Authority Budget Amendment Memos.pdf 10-01028 Legislation. pdf 10-01028 Exhibit.pdf Motion by Commissioner Gort, seconded by Vice Chairman Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Carollo and Dunn II Absent: 1 - Commissioner(s) Suarez R-10-0429 City ofMiami Page 89 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnoff BH.13, Miami Parking Authority. Scott Simpson: Scott Simpson, Department of Off -Street Parking. Before you is a resolution amending the 2010 operating budget for the Gusman. It's changing their operating expenses from 1.2 million to 1.9 million. This is an appropriation of grant dollars received and expended during the current year. Chair Sarnoff And putting it in a little simplisticer [sic] terms, can you tell us what that is? Mr. Simpson: We're not changing the bottom -line investment, but during the course of the year when they received grant dollars, the beginning of the adoption of the budget, those dollars are unknown; they're not budgeted. So at the end of the year we do a final reconciliation of the grant dollars received and expended and bring that back for (UNINTELLIGIBLE). Chair Sarnoff I'll be honest with you, Ms. [sic] Simpson, I haven't looked carefully at this. How many grant -- how much in grant dollars did you receive in fiscal year 2010? Mr. Simpson: I'm sorry; I didn't hear the question. Chair Sarnoff I thought we were talking about grant dollars. So how much have you received in grant dollars this fiscal year? Mr. Simpson: A little over a million -- or right at a million dollars. Chair Sarnoff In grant dollars? Mr. Simpson: That is correct. Chair Sarnoff Could you tell us where those -- can you name two or three of the grantors? Mr. Simpson: The City ofMiami and Miami -Dade County. Vice Chair Carollo: I'm sorry; could you repeat that? Mr. Simpson: City ofMiami and Miami -Dade County. Vice Chair Carollo: And the amounts for each? Mr. Simpson: The City two years ago gave the Gusman approximately $1 million for the window restoration project. Under GASB (Government Accounting Standard Board) the money is recognized as expended. And in the current year, the window project expended approximately $503, 000 of that money. Chair Sarnoff Let me see ifI understood what you told me. You're saying that they received -- if I remember, that came from the Homeland Security Bond issue. Well, that's where I know the money came from. Mr. Simpson: I believe it came from the Florida Sunshine Pool. It was a half a million dollars in the Homeland Defense Bond that went to another project. Chair Sarnoff For the Gusman? Mr. Simpson: Correct. Chair Sarnoff Well, how much has the Gusman received in the past three years? City ofMiami Page 90 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Simpson: From operating subsidy or in grants? Chair Sarnoff You know, I'll take it either way. Mr. Simpson: They received approximately a little over $400, 000 in operating subsidy each year for the past three years. Chair Sarnoff Okay. Mr. Simpson: And then approximately $1.5 million in grants -- Chair Sarnoff All right. Mr. Simpson: -- from the City. Chair Sarnoff And what was the 1.5 million? What were the -- where did it come from and what were the uses? Mr. Simpson: One million of it is for the window restoration project of the Olympia residential tower that came from the Florida Sunshine Pool, and then approximately a half a million dollars came from the Homeland Defense Bond. Chair Sarnoff And again, for the window restoration? Mr. Simpson: That was for interior repairs, the water intrusion, and the finishing of the seats in the mezzanine. Mayor Tomas Regalado: Mr. Chairman. Chair Sarnoff Mr. Mayor, you're recognized. I apologize; I didn't see you. Mayor Regalado: No. Just a reminder, that you and Commissioner Carollo and Commissioner Suarez, we are all board members ofMiami Sports & Exhibition Authority. Andl think it was like three months ago that Miami Sports & Exhibition Authority gave a loan/grant to the Gusman and the Olympia for $300, 000. I don't think that this is reflected in this. This is the -- this year's budget, so this is to amend this year budget. I don't know whether that $300, 000 is included. Mr. Simpson: Two hundred -- approximately 220,000 of the $300, 000 is recognized in this budget amendment. Mayor Regalado: Okay. And the other 80,000 -- Mr. Simpson: Will be recognized as -- when it expends -- is expended. Mayor Regalado: Okay. Vice Chair Carollo: See, that -- Mr. Simpson: Right now it's brought in as deferred revenue. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Go ahead. City ofMiami Page 91 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: See, that's where I was confused. 'Cause I asked where was this coming from, and you said the City ofMiami and Dade County. Mr. Simpson: You asked -- Vice Chair Carollo: MSEA (Miami Sports & Exhibition Authority) is separate from City of Miami. It's -- Mr. Simpson: I misunderstood the question. The question I thought was being asked was where did some of the grant money come from. Mayor Regalado: Yeah. MSEA -- Vice Chair Carollo: Okay. Mr. Simpson: And that is (UNINTELLIGIBLE) -- Mayor Regalado: -- is not the City ofMiami. Vice Chair Carollo: Right. It was part of that 300, 000. Now let me ask you something. I'll -- let's go a step further. Can we break down the $503, 000 and the $222, 625 and tell me from those 503, itemize it, who's giving what? Mr. Simpson: City ofMiami. Vice Chair Carollo: MSEA. Mr. Simpson: Is the 220, 000. Vice Chair Carollo: Okay, so MSEA's giving the 222,000 and the -- Mayor Regalado: No. Vice Chair Carollo: -- City of Miami's giving the 503,000? Mr. Simpson: That is correct. Vice Chair Carollo: And the 222,000 -- is there going to be a debt service payments next year in your budget? Mr. Simpson: I'm sorry? Vice Chair Carollo: I -- it's my understanding that it was a loan for $300, 000. Mr. Simpson: The loan is predicated on the winning of a lawsuit. Vice Chair Carollo: It's my under -- Mr. Simpson: The repayment of the loan is predicated that if there is -- if we prevail in the lawsuit and any money comes back in, it would repay the loan then. Vice Chair Carollo: And I'm sorry, but I'm not understanding. Mayor Regalado: Yes. City ofMiami Page 92 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: It was my understanding that MSEA gave you a loan for $300, 000. And when I looked at your budget, which is -- it's item BH.14, I didn't see any debt service payments, so it made me wonder why and -- Mayor Regalado: No. The loan is predicated on the City Attorney's finalizing the legal case for the Olympia building. If and when that -- there is a settlement, MSEA needs to get the -- Vice Chair Carollo: Reimbursed. Mayor Regalado: -- $300, 000 back. I don't know what is the -- Vice Chair Carollo: Is MSEA showing it as a loan receivable? I mean, do they expect to get it back? I'm -- Mayor Regalado: Yes. Art Noriega: I think the way MSEA treated it, for purposes of the discussion we had, was specifically that it was intended to be a grant. But if the litigation was successful, it would turn into a loan. It's as simple as that. How they're recording it in terms of their books, I have no idea. Vice Chair Carollo: Because -- Mr. Noriega: But that was simply how it was resolved in terms of the language, and that was an issue that was proffered by them at the time. Because we originally approached MSEA, it was offered as a grant, but we explained that we were in litigation to recoup that money. And because we were, we transitioned the language to account for that. That's -- that was how it went down. How MSEA's accounting for it, I have no idea. Vice Chair Carollo: I just -- you -- and remember, I was at that meeting. I had to step out for I don't know what. I had an event or so forth. I came back and that item was already voted on, and it was my understanding that it was voted on as a loan. Mayor Regalado: It was. If -- it was supposed to be a grant, but then board members amended the motion and it became a loan predicated on -- Vice Chair Carollo: Winning the lawsuit. Mayor Regalado: -- the settlement for the Olympia building. So yes, you're right; it ended as a loan. Vice Chair Carollo: And -- Chair Sarnoff. Go ahead. Vice Chair Carollo: -- predicated on the lawsuit, where's the law -- is there a lawsuit? What's going on with the lawsuit? Julie O. Bru (City Attorney): I believe we're scheduled for trial. I mean, I'm sure -- Mr. Noriega: Well -- Ms. Bru: -- that before trial, there'll be -- Mr. Noriega: Yeah. City ofMiami Page 93 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Ms. Bru: -- some sort of mediation settlement negotiations, but it's set for trial. Mr. Noriega: Yeah. We've already been through mediation and were unsuccessful. Trial's set for January. Chair Sarnoff. New judge, I think, right? Mr. Noriega: Huh? Chair Sarnoff. I think you have a new judge, don't you? Mr. Noriega: I'm not sure that we have a new judge. In fact, the judge continued -- originally we were set for trial this week and continued it because her docket got a little confused and so she pushed it back to January, so that's where we are with that. Chair Sarnoff. You mind ifI jump in for a second? Art, I certainly support the Gusman. I think the Mayor's done a fantastic job of attracting an angel -- I don't know. What do you call 'em? It's been called the White Knight'by the Herald or an angel or whatever you want to call 'em. But you know, I have some questions with regard to just the capital expenditures 'cause we had a report done by the PAC (Performing Arts Center) and I'm hearing that $1.5 million was spent on window restoration and $503, 000 was on -- spent for window -- water intrusion. Yet, one of the reports I got back from the PAC was you're suffering -from significant water intrusion. And I'm just curious, what -- did you not get enough money? Did -- is there that much more water intrusion to go or --? Mr. Noriega: The problem now as it exist -- and we just got an engineering report which is going to lead us to modify our claim against Cornerstone, against the Olympia building partners, the litigation -- is that the problem in the water intrusion is significantly more advanced than we originally had anticipated. I mean, to the extent that the brick facade is delaminating from the structure of the building. It's that severe. Chair Sarnoff. Well, the brick facade is -- MSEA gave you $300, 000 to pin that -- Mr. Noriega: Correct. Chair Sarnoff. -- to make sure it doesn't go any further, but -- and you're suing the guys upstairs and you may prevail and you might get a judgment and that judgment might not be worth the paper it's written on and all that -- Mr. Noriega: Correct. Chair Sarnoff. -- good stuff. But you've thrown at this building, that I think I'm reporting, $2 million in capital expenditures? Mr. Noriega: Correct. Chair Sarnoff. And of that $2 million, a million went toward window restoration, 500,000 went towards water intrusion, 300,000 to pin the, you know, brick facade up, and I don't know what the other 200,000 was for, and yet, you still need significant dollars. Mr. Noriega: It's an 86-year-old building. You know, there's not much you can get past that. The water intrusion issue was a means to make the issue or the problem significantly worse, as with anything else. If you don't stop the water penetration at some point, don't seal the building, that delamination problem gets worse and worse, and then it becomes a structural problem. So City ofMiami Page 94 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 it's a means of trying to stop a bigger problem, and that's really where we're at with that. But it's a much bigger -- Chair Sarnoff. So -- Mr. Noriega: -- problem. It's a -- Chair Sarnoff. And I'll -- Mr. Noriega: -- historic building. Chair Sarnoff. -- leave it after this. But you spend $503, 000 on water intrusion. What did that get you? Margaret Lake: I can -- I've been there for three and a half years -- tell you that in the building, we have four phases for restoration, so that plan was, I don't know, created around 1994/'95 and it was, you know, four phases, so you look at it -- and we're what, 15, 16 years later. The stucco on the outside of the building has to be, you know, completely stripped resealed. We did two sides of that building. And it's not exactly square since it's attached to other buildings, so we did two sides already. We still have to do the interior walls where we have fire escapes that are cored into the side of the building and they, you know, create a hole for the intrusion to come in. So -- I mean -- Chair Sarnoff. Answer me like this. The five hundred -- Priscilla A. Thompson (City Clerk): Excuse me, Chair. Chair Sarnoff Yes. Ms. Thompson: I apologize. I need a name for the -- Chair Sarnoff. State your name for the record. Ms. Lake: Sorry. Margaret Lake, director of the Gusman Theater. Thank you. Ms. Thompson: Thank you. Chair Sarnoff. Ms. Lake, tell me that the 503,000 that was expended whether it was planned in '94 and expended in 2004 for all know. Tell me that that $503, 000 was worthwhile and that is holding, so to speak, and you just have one more wall or two more walls. Ms. Lake: I believe so. Andl also have two grants from the County to address both those issues to a tune of about 80,000 that I'm trying to match with a couple other grants right now . So I -- being a part of the board of League of Historic American Theaters, I asked the other day for 20 theaters outstanding capital needs. Not one was less than five or six million dollars, just as a note. Chair Sarnoff. I'm not sure I follow what you just said. Ms. Lake: I asked other historic theaters nationally for their list of capital needs and their funding. Not one was less than $5 million. Chair Sarnoff. Okay. And one last question for you. With regard to where you keep your office space, what are you paying on an annual basis? City ofMiami Page 95 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Ms. Lake: I believe it's about 29,000. Chair Sarnoff Per year? Ms. Lake: Per year. Chair Sarnoff And Mr. Noriega, there's no opportunity to put them in your new office building so that they don't have to incur that? Mr. Noriega: We certainly could explore that. The original intent was once we got the litigation resolved, to look at an opportunity to move them back into the building again. Obviously, to move them in our office in terms of proximity to the theater is a little bit of a problem. It doesn't give them direct access to the theater. I mean, quickly, it's kind of a little out of the way, so we've tried to avoid that particular scenario to try to see if we can get the issue resolved and get basically possession of the building back 'cause that's, I think, one of the intended resolutions. Chair Sarnoff. But sometimes when you plan on litigation, judges are always continuing things, especially today. I mean, they're back to like what I call '02/'03 rates, which means four or five years in litigation is not unheard of. Wouldn't -- you know, this Commission, to my -- somewhat my surprise, approved $100, 000 toward you for the Gusman, and it would seem like you could do away $30, 000 if you could give them some space; andl understand it's not as convenience, as you maybe would like it, but nonetheless, everybody is having to work that much harder and, you know, you could see what this Commission is facing. Mr. Noriega: Sure. Chair Sarnoff. And you know, if I just look at a couple of your line items here, you get rid of the office space, you get rid of approximately $40, 000, so -- Mr. Noriega: But we'll certainly explore it. Chair Sarnoff. Okay. Commissioner Gort: I have a question. Chair Sarnoff. Go ahead. Commissioner Gort. Commissioner Gort: IfI recall, Corner -- the contract with the Cornerstone, whatever the name of the -- that was in 1990 something. Mr. Noriega: 1994. Commissioner Gort: '94. And they received funding from the City, from the State, and from the County. Mr. Noriega: Correct. Commissioner Gort: It was -- Mr. Noriega: Tax credits and also as well as CDBG (Community Development Block Grant) funding. Commissioner Gort: Right. It was a total -- a large amount of funds that was to restore the whole building. City ofMiami Page 96 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Noriega: It was originally an office building and it was -- Commissioner Gort: Right. Mr. Noriega: -- basically retrofitted into apartments. Commissioner Gort: To be converted to condominiums because we needed housing in downtown Miami. Mr. Noriega: Correct. Commissioner Gort: They didn't do the work. Mr. Noriega: No. They did the work. They just -- they're just not paying the rent they should be paying. That's the dispute. Commissioner Gort: Okay. Chair Sarnoff. All right, any further discussion on BH.13? The Vice Chair is recognized. Vice Chair Carollo: No, not on BH.13. I just want to verifi, we were on BH.13 and then we'll -- Chair Sarnoff. Right. Vice Chair Carollo: -- move to BH.14. Chair Sarnoff. We have closed the public hearing on BH.13 or have it opened it, Madam --? I have not. Anybody wishing to be heard on BH.13, please step up to the podium. Seeing none, coming back to the -- closing the public hearing; coming back to the Commission. Is there a motion on BH.13? Commissioner Gort: Move it. Vice Chair Carollo: Second. Chair Sarnoff. Motion by Commissioner Gort, second by the Vice Chair. Any further discussion, gentlemen? Hearing no discussion, all in favor, please say aye." The Commission (Collectively): Aye. BH.14 RESOLUTION 10-01027 Miami Parking A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Authority ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE DEPARTMENT OF OFF-STREET PARKING, IN THE AMOUNT OF $1,393,360 EXCLUDING DEPRECIATION, TO PROVIDE FOR THE OPERATION OF THE GUSMAN CENTER FOR THE PERFORMING ARTS AND THE OLYMPIA BUILDING, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011. 10-01027 Parking Authority Budget Memos.pdf 10-01027 Legislation. pdf 10-01027 Exhibit.pdf City ofMiami Page 97 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Motion by Vice Chairman Carollo, seconded by Commissioner Suarez, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Carollo and Suarez Absent: 1 - Commissioner(s) Dunn II Note for the record: Item BH.14 was deferred to the Commission meeting currently scheduled for October 14, 2010. Chair Sarnoff: BH.14. Art Noriega: BH.14 is a resolution approving the budget for this year, for this upcoming fiscal year for Gusman. The resolution indicates it's a 1, 393, 360, but that's subject to a reduction based on the elimination of the City's contribution. Subsequent to that original elimination of that contribution, there has been some funding both from the City and potentially the DDA (Downtown Development Authority), which will basically subsidize that number to the tune of another $200, 000. So the reduction is really along the lines of 260 as opposed to 460, which was the original budget of City subsidy. So that number of 1,393,360 will be reduced by 260, 000. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. You're recognized for the record. Vice Chair Carollo: And the line item is City operating contribution for 465, 360. You're saying instead of 465, it will be 200,000? Mr. Noriega: City's contribution -- well, City's contribution will be 100. Vice Chair Carollo: Right. Now -- Mr. Noriega: The other 100 would come from the DDA. Vice Chair Carollo: First of all, I know the Mayor mentioned this to me, you know, but I don't think we've approved our budget and show it there for 100, 000, so -- I mean, it might be a little premature. And second of all, I asked the DDA about it and they say that, you know, even though, yes, they -- andl don't want to put words into her mouth. But the bottom line is that they had to either speak with you all or negotiate or so forth. In other words, it wasn't a done deal. Mr. Noriega: Yeah, the details certainly haven't been worked out 'cause this really just came to light in the last couple of days, so -- Vice Chair Carollo: Well, the reason why -- you know, and I'm going to be asking a lot of questions with this budget. I don't know if a lot of questions, but I am going to be asking questions, and the reason for it is because I just want to let everybody know or at least my colleagues -- I guess everybody out of the Miami Parking Authority CAFR (Comprehensive Annual Financial Report), in one of the notes it specifically states "In addition to manage garage facilities under City ordinance number 8435, the City authorize the board" -- meaning the Miami Parking Authority board -- "to administer the operations of the Gusman Center for the Performing Arts in the Olympia building properties owned by the City. Such operations are separately accounted for by the board" -- once again, it's Miami Parking Authority board -- "and reported by the City under the title of the G&O (Gusman & Olympia) special revenue fund. All operating budgets of the G&O special revenue fund must be approved by the Commission.' And this is the important part or what I think is the most important part. "In the event the operating revenue of the G&O special revenue fund is not sufficient to cover its operating expenditures, the Authority or the City will fund the cash shortage." The next sentence says "Cash needs funded by the Authority are reimbursed by the City." The bottom line is we are City ofMiami Page 98 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 ultimately responsible. And the reason why I say that is because it is important to note that, again, if some of these expenses can be either eliminated or reduced, then the truth of the matter is we might be in a much better situation where -- 'cause in all fairness, those 200,000 or those four hundred and some thousands that in the past the City has contributed, it's only part of the amount, and there's actually a lot more. So -- I mean, in all fairness, maybe you don't need that much, maybe you don't need the whole four hundred some thousand. And understand there's, you know, private fundings that may be stepping up. But you know, there's items here that -- and I'll just mention one real quick, telephones. I mean, it's an increase of 125 percent, from $9, 000 to this year $20,300. Why the big increase in expense and why do we need $20, 000 on telephone expense? I mean, that's only one. We'll start going into the details, but you know -- Margaret Lake: I've actually -- coming from not the Parking and the government world -- have taken the Gusman budget and allocated the things where they need to be. We used to have telephones in maintenance and put telephones back in. We have web, computers, telephone services all in one line item. I wanted to streamline it and just put the web services and the telephone services in the correct place, so it really wasn't an increase. And we do have, you know, three floors of dressing rooms with phones. We have phones in the ticket booth. We have DSL (Direct Satellite Link) lines in the cash registers. We have office phones. I mean, we actually have, you know, quite a large operation for phones. But ultimately, it wasn't that the line item increased; instead, it was properly placed. Vice Chair Carollo: Well, the line item for telephone did increase from 9,000 to 20,300. And if you're saying that maybe it was reported somewhere else in past years, then show me where was it reported before so I can see the reduction then in that line item. Ms. Lake: Well, the maintenance line item has increased, so you wouldn't see in that line item. But I'd be happy to sit down with you and go through the budget detail. Vice Chair Carollo: But when are we going to do this? Ms. Lake: If you have some other questions, I can actually pull it out of my bag. Vice Chair Carollo: Yeah. I mean, I'm going to have quite a few other questions. Consultants, $95,820. What type of consultants? Ms. Lake: That's actually an all -in number. We have marketing consultants that are $48, 000. I also pay the house manager in that line item on a 1099 who comes in on an as -show, as -needed basis instead of having a full-time staff member, so it's actually a cost reduction in salaries. I know that we have a couple other -- what else do we have in there, (UNINTET,TIGIBT,F)? Vice Chair Carollo: But -- yeah, but hold on. Did you pay these consultants last year 'cause you're showing last year -- and actually, I don't have --I have 2009 actuals, but don't have 2010 actuals. And yes, I know for those last month you may have to project. But the truth of the matter is, for 2009 actuals you paid consultants 58,000; now you're paying 95,000. Ms. Lake: We had the house manager on the salary before -- the year before, so we had -- in order to save money, we're not paying that person's benefits. Vice Chair Carollo: Gotcha. However, salaries has also increased. Ms. Lake: We got a County grant to increase a staff member that we had lost the previous year as a technical coordinator. We got $15, 000 from the County this year to partially fund that person as a technical coordinator. Vice Chair Carollo: But you understand what my problem is. You're telling me that you actually City ofMiami Page 99 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 reduced an employee, so salary should have gone down and that's why your consultants went up. However, when I look at your line item for salaries, it actually increased. Ms. Lake: It did. Andl can tell you that when you're trying to build a business and grow an operation, you have to increase staff. And my earned income this year over last year is 40 percent ahead of where it was last year. So ifI want to grow the revenue, I've had to increase the staff and l found grant monies to do that. I mean, I would love to spend time with you to show you what we've done. Vice Chair Carollo: Well, I don't have 2010 actuals so I don't know if you've actually grown the revenues or not. I have 2009 actuals, but I can't compare it to 2010 actuals, so I don't know if you really are growing the revenues or not. I could see that you are budgeting and guess you're looking at making additional revenues. However, I don't know -- I really don't even know how feasible that is, if these estimates are out of whack or not. I'm seeing that in ticket charges commission, the adopted for last year was 4,000; you've increased it now to 60,000. That's a big increase, andl don't know how realistic that is. Ms. Lake: Well, if you were in the feeder business -- I'm actually renegotiating my ticketing contract right now with Ticketmaster, and we're renegotiating with a new company so that those fees actually go to us. Ticketmaster probably makes about $150,000 a year on the venue. If we take those fees in-house, which I'm working on right now, that increases our revenue by about 75,000 based on the status quo. So there are things that I'm doing as a director to, you know, bring those additional funds in. I mean, I could show you studies that theaters of our size and our capacities in metropolitan cities have at least ten employees. We have five full-time employees -- six. Vice Chair Carollo: Six full-time employees are making $389, 000 in salaries? Ms. Lake: We actually pay a partial salary to an MPA (Miami Parking Authority) accountant. Vice Chair Carollo: I'm sorry? Ms. Lake: We pay a partial salary for our accounting at the Parking Authority. Vice Chair Carollo: Okay. But you're saying that you have six employees, correct? Ms. Lake: I can count from now. Vice Chair Carollo: And I'm seeing salaries and wages, here you're budgeting $389,982. So for six employees, you have $389, 000? Again, I'm just going by your -- Ms. Lake: It's six, plus a part-time partial. Vice Chair Carollo: I'm just going by your budget. I'm just going by what's -- Ms. Lake: Yeah. I can give you the detail. Like I said, it's in my bag. Vice Chair Carollo: I think would like to see the detail, Mr. Chairman. Either we could table this or -- Chair Sarnoff. Let's do that. Why don't we table it? We're going to have a break between the major item, so why don't we table -- Vice Chair Carollo: What was that about a break? City ofMiami Page 100 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.15 10-01026 Miami Parking Authority Chair Sarnoff Let me see what else we could do. Let's see if we can do the Virginia Key Trust. We could leave the last two -- I don't think we can go to BH.15 without taking care ofB -- Vice Chair Carollo: No. [Later..] Chair Sarnoff All right, back on the record. My understanding is thatBH.14 can be deferred. Can get a motion to defer? Vice Chair Carollo: So move. Commissioner Suarez: So move. Chair Sarnoff Got the Vice Chair moving to defer, second by Commissioner Suarez. Any discussion, gentlemen? All in favor, please say aye." The Commission (Collectively): Aye. Chair Sarnoff I know you're going to ask -- Priscilla A. Thompson (City Clerk): Do you have a date? Chair Sarnoff Yes. You're going to do it to the October 14 meeting. Ms. Thompson: Thank you. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AND ADOPTING THE ANNUAL BUDGET OF THE DEPARTMENT OF OFF-STREET PARKING, IN THE AMOUNT OF $13,963,157, EXCLUDING DEPRECIATION, AND OTHER NON -OPERATING EXPENSES OF $6,914,367, ATTACHED AND INCORPORATED, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011. 10-01026 Parking Authority Memos.pdf 10-01026 Parking Authority Memos 1.pdf 10-01026 Legislation. pdf 10-01026 Exhibit SUB.pdf 10-01026-Submittal-Email-Revised Proposed FY 2011 Budget -Miami Department of Off -Street Pal Motion by Commissioner Suarez, seconded by Commissioner Dunn II, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Dunn II Noes: 1 - Commissioner(s) Carollo R-10-0431 A motion was made by Vice Chair Carollo, seconded by Commissioner Suarez, and was passed unanimously, to bring this item back for the October 14, 2010 Commission meeting for further review of the Department of Off-street Parking's operating budget. City ofMiami Page 101 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 ChairSarnoff BH.15. BH.15 -- Vce Chair Carollo: Fifteen. Chair Sarnoff -- page 10. Vice Chair Carollo: Off -Street Parking. Art Noriega: Before you have a -- this is really an amendment to the original budget that was submitted a few months ago at the behest of the Mayor and the Manager in a meeting we had the very tail end of last week. We requested, as were all the other City agencies and departments, to reduce the budget an additional 5 percent. We've done that. The original requested amount was 14, 707, 743; the reduced dollar amount is $13, 963,157, for a total of $744,586 as the combined reduction. The lion's share of that reduction is really evident in salary and wages. The overall salary and wage reduction from the approved budget to the revised is somewhere roughly in the range of about 9 percent. Where we bought back some additional expense for this year was primarily -- the lion's share is in two line items. One is we had to renegotiate this past year all of our leases with the Florida Department of Transportation for all of the right-of-way. We have 14 properties. That amounts -- that amounted to about a $400, 000 increase. In addition to that, we also had an increase which is, in our business, a good thing. In credit card utilization, in the past years we've seen our credit card utilization increase dramatically as a function of the change in our business and our move to automation. And as a result of that, it's a good thing because we -- we're really processing a little less cash; less opportunity for theft. But the charges that go along with that and the cost for processing those credit cards increased. So the combination of those two was roughly about a $700,000 number. So the net effect outside of those two items in terms of cost reductions have -- really, really were significant. Chair Sarnoff. All right. Let me open a public hearing. Anyone wishing to be heard on BH.15, please step up. Mr. Cruz, you're recognized for the record. Mariano Cruz: Yeah. Mariano Cruz, 1227 Northwest 26th. I also happen to be the chairman of the Allapattah Business Development Authority. For many years I've been here at the hearings of the Miami Parking Authority or Off -Street Parking Authority, I always call. I never said anything because they were behaving real good. But lately, lately, in the last year, they've been ignoring the neighborhood, ignoring Allapattah business. They would never do nothing in downtown without consulting the DDA (Downtown Development Authority), nothing in downtown. And they go to Allapattah and they put in industrial area parking meters all over the place, all over the place there. Andl have horror story. I'm going to mention a horror story. Mr. Vicente (UNINTELLIGIBLE) owns AP Contractors, 1941 Northwest 21 Terrace. He got to put a meter right at his gate there. He going to load the truck outside because he don't put inside because (UNINTELLIGIBLE) all car parking. A meter maid came and say you got to put money in that meter. How come? I'm loading. No, no. Put money or I'm giving you a ticket. He say I pay -- Mr. (UNINTET,TIGIBT,F) pay over $12,000 in ad valorem taxes on his business, his building, and all that. That was one case. Then the next day (UNINTELLIGIBLE) AP contractor go to do -- go to work at 2084 Northwest 21 Avenue across from I Am Latin restaurant. The same meter maid come. He put his truck there to load. He using the -- one of those meters, one here and two here. You got to put money in both meters. He say, but I am working. I am paying taxes to the City. Oh, you put money in your meter or I give you a ticket and have your truck towed away. Do you teach your employees to treat the people, the business people that pay taxes there in Allapattah --? Allapattah is the second (UNINTELLIGIBLE) neighborhood paying taxes in the City ofMiami and then they get -- Chair Sarnoff. In conclusion. Mr. Cruz: -- parking meters all over the place. But then you go -- City ofMiami Page 102 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnofff. In conclusion. Mr. Cruz: -- past 37th Street and there is no -- any more parking -- Chair Sarnofff. In conclusion. Mr. Cruz: -- meters into Liberty City or Overtown, whatever. How come -- Chair Sarnofff. Thank you. Mr. Cruz: -- in the industrial area, they put all these parking meters? Chair Sarnofff. Thank you. Mr. Cruz: Okay. But I don't care, you're going to approve it, but I got to say that as a matter of record. Chair Sarnofff. And you are on the record. Mr. Cruz: Okay. And remember, November 2 election, and we -- Chair Sarnofff. Thank you. Mr. Cruz: -- I help it. Chair Sarnofff. Thank you. Note for the Record: Chairman Sarnoff turned off microphone; therefore, speaker's comments were not transcribed. Chair Sarnofff. Yes, sir. You're recognized for the record. Angel Urquiola: Yeah. My name is Angel Urquiola, 25 Southwest 38th Avenue. I know I hear the Parking Authority for so many year. And let me tell you something, Commissioners. This is the worst business in the City ofMiami does when they making this Authority. They will give nothing to the City ofMiami. Everything is for them. And now they inventing the parking with the telephone. You go to the park with $5 bill and 11 at night and you put the $5 and it supposed to give you $4 change, right, because this is Saturday. They only working this until 12 at night. Then they give you a paper -- a little paper. It said you have four more hour. You come at 12: 30. You (UNINTELLIGIBLE). No. It's closed. You coming another day. Well, I have paper over here for four hours. I put more last night. I know this was last night. You had to put money again. You see, this is -- it's a business -- this is monkey business. And we have to take over the Parking Authority. We don't need it. We make a -- not you, we, the citizens, we make a big mistake when we talk to the other Commissioner and Mayor (UNINTELLIGIBLE) the Parking Authority. Bringing back to the City -- we needed the money they making. We don't have nobody in this Authority to check how much money they make. Chair Sarnofff. Thank you. Mr. Urquiola: Okay. Thank you. Chair Sarnofff. Anyone else in the public wishing to be heard on BH.15, please step up. Seeing none, hearing none, coming back to the Commission. Do we have a motion? City ofMiami Page 103 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Suarez: I'll move it for discussion. Chair Sarnoff. Motion by Commissioner Suarez -- Commissioner Dunn: Second. Chair Sarnoff. -- second by Commissioner Dunn. Commissioner Suarez, you're recognized for the record. Commissioner Suarez: Thankyou, Mr. Chairman. Thankyou, Mr. Noriega. When we met and we went over your budget line by line, I had asked for a lot of information. And we spoke today and you basically said that, in essence, you were able to give it to me today because you were actually doing a further 5 percent cut on a lot of the items that identified as troublesome to me when I looked at them, and this is what it is here. Your contribution to the City from last year has gone up from like 3 million to 7.5 million. What was it last year? Mr. Noriega: Seven point five -- oh, last year was two million. Commissioner Suarez: Two million to seven point five million? Mr. Noriega: Correct. Commissioner Suarez: And if we -- if you cut an extra 700, 000, why isn't that reflected in the, you know, additional contribution to the City? In other words, you're at 7.5 million when you back out the depreciation and the other categories. Why -- when you cut an extra 700, 000, why isn't it now 8.2 that the City's getting? 'Cause I think the Vice Chair had an issue regarding setting up a trust and there was -- we were looking for some funds to set up that trust and here's $702, 000 that could start funding that trust. Mr. Simpson: Scott Simpson, Department of Off -Street Parking. The original proposal that was sent to the City back in July contemplated only a $5.5 million contribution of excess revenue to the City. We went from five and a half to seven and a half for the current year; consequence of revenue enhancements as well as the additional cuts that we just implemented last week. Commissioner Suarez: But what you explained to me earlier when you gave me this information was that you had gotten the extra 702,000 and that your budget -- that you were going to be giving back to the City 7.5 million. So the reason why there was a -- wasn't a discrepancy was because it was a capital expenditure that you had, in essence, backed out. Mr. Noriega: Let -- I'll make it -- Commissioner Suarez: That's what he explained to me. I didn't talk to you about it. Mr. Noriega: I'll make it a lot easier for you. The actual contribution this year short of subsidy -- 'cause we're basically subsidizing the contribution this year -- would be where, about 4.5 million? Right, okay. So we're subsidizing the contribution to get it to 7.5 million because we made that commitment for budget purposes. When we anticipated originally the budgeted item in terms of revenues at 7, $7.5 million, we did so under the anticipation we were going to go full 12 months of a rate increase, which was passed by the City Commission late, almost right at the deadline of the budget cycle; and then we were also hoping that that would amount in terms of a steady economy as well. What's happened is for us is that a rate increase wasn't implemented a full 12 months, and in addition to that, the occupancy in downtown, specifically the office occupancy, has decreased. So our revenue numbers in our core business areas, which are really downtown and Coconut Grove, have actually declined. The net effects, that's utilization. The City ofMiami Page 104 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 actual numbers will still stay high because we implemented a rate increase, but the actual revenue numbers for this past fiscal year, the one we're in right now that's going to end in three years, the revenue numbers from our projections are down and that's entirely due to just utilization and occupancy in downtown. Commissioner Suarez: But the way he explained it to me when I spoke to him before was that the 7.5 was before the cuts, the $700,000 in cuts. And then the reason why it stayed at 7.5 was because he had backed out a capital expenditure that he had put in there. And my -- and then I asked him specifically, couldn't we put that back in and that would give us 8 million? And he said sure, you could. You remember when we talked about that when you gave me the information? Mr. Simpson: That's correct. Basically, what we were going to end up doing in the current year was also offering an additional subsidy to get the number the City needed, was the 7.5 million. Commissioner Suarez: Right. But we talked about 8 million. Mr. Simpson: And you mentioned like could it be 8 million. Commissioner Suarez: And you said that it was -- you guys had backed out of capital expenditure and that when you -- Mr. Noriega: The -- this current year -- Commissioner Suarez: Am I explaining it wrong? Mr. Noriega: No. It's -- what needs to be understood is that this current fiscal year has a subsidy already incorporated in the 7.5 million. So if you carry that forward to next year, right, there's still inherently going to be a subsidy to get to the $7.5 million because we're -- from a strict revenue standpoint and with the attrition that we've had in terms of just utilization in our core business areas, we're -- more than likely, getting to that $7.5 million is going to be a difficult number anyway. So the reduction in expenses just from -- for purposes of this upcoming fiscal year, just lowers -- reduces that subsidy amount in terms of the gap. You understand? We were going to have to subsidize it roughly about a million two. This means the subsidy will really -- in other words, take money out of reserves. That's really what I'm talking about. And the intent on our end is really not to dip into the reserves too much more because we 're going to be at, by the end of next fiscal year, roughly about 5, $5.5 million. And from a bond indenture, that's really where we need to be in terms of replacement of reserves. Chair Sarnoff All right. Vice Chair. Vice Chair Carollo: Thank you, Mr. Chairman. I'm going to have quite a few questions, and one of the reasons is, as everybody knows, this is an important budget because in November and what -- in a little bit over a month, there's going to be an election with regards to the Parking Authority, andl know for a fact that there's going to be a lot of residents that are going to look at me for guidance on what to do and how to vote on this issue. So knowing that, I spend over the weekends some time reviewing the budget for the Parking Authority. However, at the same time, I was reviewing what you had originally presented. And this morning at 8:13 in the morning, I received the e-mail (electronic) with the amended budget. I just received some additional information, which, in all fairness, yes, it's something that I was going to request and, you know, I guess you anticipated it, butt received it a few minutes ago, andl understand, I understand. But with that said, you know, I went back to my office and ate a quick sandwich, andl was going to review some of my notes and, you know, it's just too many and too many budgets, so I'm just going to, you know, go with it and, you know, start asking some of the questions, if that's okay with you? City ofMiami Page 105 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Noriega: Absolutely. Vice Chair Carollo: Okay. First thing) want to ask is any excess -- is there a minimum requirement or any requirement of any excess funding that you have to give to the City ofMiami ? Mr. Noriega: No. Vice Chair Carollo: There is not? Mr. Noriega: It's budgeted on a year-to-year basis. Vice Chair Carollo: Right. But the bottom line is, even if you have excess revenues, technically you don't have to give anything to the City ofMiami. Mr. Noriega: Absolutely, we do. If we have -- Vice Chair Carollo: You do? Mr. Noriega: -- excess revenue, it all flows to the City. Vice Chair Carollo: Now -- okay then. And again, this is a learning process, so -- Mr. Noriega: Sure. Vice Chair Carollo: -- you know, I'm asking the questions. I have here from your CAFR (Comprehensive Annual Financial Report), from your audited financial statements, note 9, towards the bottom it stipulates Ordinance 11693, the ordinance, authorized the issuance of Series 1998 bonds. Okay, next sentence. The ordinance allows the Authority, at its option, at its option, to transfer excess revenues as noted above, except that no minimum transfer requirements are stipulated. So it seems to me like there's no minimum required transfer stipulated on what you need to give to the City ofMiami. Is that correct? Mr. Noriega: No. There was a subsequent bond issue after the '98s. That created a closed indenture that opened the indenture back up. The City in -- I don't -- right after 2000, 2001 -- I don't remember the exact year -- came before the City Commission, asked for the ability to issue bonds; we did. As part of the discussion, what was raised was when we want to open up the indenture again, which was that language that was in the original -- the old bonds. And we said -- 'cause it left it at my board's discretion. And the City Commission at the time said we want to open that backup again because it closed the system. We did. We acquiesced to it. And inherently, there is -- there's no further language in any of our existing bonds that restrict us from giving all of our revenue at the end of the year to the City. Vice Chair Carollo: There's no language that restricts you, but there's no language that says you have to either, correct? Mr. Noriega: Yeah. It's in the Charter. Absolutely. It's in the Charter. Vice Chair Carollo: Okay. And obviously, that's something) want to follow up with you, so -- Mr. Noriega: Sure. Vice Chair Carollo: -- we could -- As far as cuts, I'm going to get right into it, you've personally witnessed what some of our employees are going through -- City ofMiami Page 106 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Noriega: Correct. Vice Chair Carollo: -- today when they came before us, not only salaries but health care and pensions costs. Do you have a defined benefit plan? Mr. Noriega: We do. Vice Chair Carollo: Have you modified that to be equal to the employees of the City ofMiami? Mr. Noriega: It's actually a lot less than the City's, the employees. You describe it. Mr. Simpson: Scott Simpson, Department of Off -Street Parking. Two years ago we saw what was coming down the road. We went in and actually changed the plan. At that time we went in and changed the retirement age from age 55 to age 60. We went in and we also removed the 25-years in out clause. The multiplier for Off -Street Parking for the first ten years of services is a 3 percent multiplier and after ten years, it is reduced to 2 percent. Vice Chair Carollo: Do you know that the multiplier for general employees is for the first 15 years, 2.25; for the next five years, from 16 to 20 years is 2.5; and then over 20 years is 2.75, while you're at three? Mr. Simpson: Correct. Vice Chair Carollo: Shouldn't then in order to have more savings, change the multipliers? And I'll go a step further. As far as your average final compensation, do you all have what three years, two years, what's that? They just went to a five-year average. Mr. Simpson: Ours is currently a two-year average as of October 1. Vice Chair Carollo: Two-year. I mean, if we're talking fairness, shouldn't we -- shouldn't you all maybe look at that and change as everybody City employee here has, you know, given up? Mr. Simpson: That's something we can take under consideration. Vice Chair Carollo: For this budget year? Mr. Noriega: We certainly can. I mean, that's something I'd have to go to my board -- back to my board for. I mean, I'll -- what I'll commit to doing is taking an analysis of ours versus the general service employees. I'll take it back to my board, present it to them, discuss your concerns; and based on how that analysis compares, I'll be happy to present it to them. Without looking at the numbers in terms of you know, the actuarial impact, I mean -- Vice Chair Carollo: I understand. And the reason why I say this is because, first of all, fairness; second of all, I mean, if we save more money, that means you give back to the City ofMiami more money, correct? If the City ofMiami has more money, then we could pay our employees, or provide services to our constituents, our residents, and that's why I think it's important to start really looking at this budget. Mr. Noriega: Sure. Vice Chair Carollo: I want to talk about the $2 million from 2009. That was $2 million in excess revenue. But how much did you pay the City ofMiami? Mr. Simpson: In excess, $2, 010, 000, I believe. City ofMiami Page 107 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: But how much did you actually pay the City ofMiami? Mr. Simpson: Well, if you go in, you take into account the amount of money that we generate from citations. Vice Chair Carollo: No, no, no, no, no, no. We're not -- Mr. Noriega: No. That was -- Vice Chair Carollo: Unless you're telling me that that amount includes the amount of -- that you generate from citations? Mr. Noriega: No, it doesn't. Mr. Simpson: No, it does not. Vice Chair Carollo: I didn't think so. Mr. Simpson: No. Vice Chair Carollo: So why would you commingle the things? Don't commingle it. Mr. Simpson: Well -- Vice Chair Carollo: Let's just keep with -- Mr. Simpson: -- $2 million was the number we paid the City in excess revenues. Vice Chair Carollo: That's not what the CAFR's showing. It's showing that's your excess, but the CAFR's showing that you actually paid the City $800, 000, plus $263, 000 from previous carry forwards. Mr. Noriega: That can't be right. Vice Chair Carollo: No? I'm looking at your cash flows from the 2009 CAFR and I am seeing here excess revenues distributed to the City ofMiami $800, 000, and then cash paid to primary government, 283,111. You add that up, it equals $1, 083, 000. The other went to ihue to the City ofMiami." Mr. Simpson: I don't have the reconciliation, but I can tell you emphatically that we did cut a check in excess revenue of $2 million to the City. Vice Chair Carollo: I'm not seeing it in the cash flows then for the audited financial statements of 2009. Mr. Simpson: If you -- Vice Chair Carollo: You will have to compare and see where it is 'cause I'm not seeing it. Mr. Simpson: If you -- Vice Chair Carollo: I'm actually seeing it going to i7ue to the City ofMiami." Mr. Simpson: -- go to the income statement, there's a line item called Excess to the City'and it'll show $2 million. City ofMiami Page 108 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: Excess to the City. But when I see your cashflows, I'm seeing that only a thousand eighty -- a million eighty-three went to the City. Mr. Simpson: I do not have the reconciliation. It goes into account for the change in the cash -- on the cash flow statement presently. I'llbe happy to forward that to you. But I can tell you the number is $2 million. Vice Chair Carollo: I mean, the excess -- I believe the excess was $2 million. I just don't believe you actually paid the $2 million to the City. Mr. Noriega: Trust me, the Finance Department wouldn't have let us get away with not paying the $2 million. Vice Chair Carollo: It's not in the due to? Mr. Noriega: No. There's no open AR (Accounts Receivable) from us to the City for the balance. We paid the $2 million. Vice Chair Carollo: Why did the due to the City ofMiami increase then? Mr. Simpson: The excess -- 80 percent of the excess calculations paid to the City in June 1. The remaining balance of the excess revenue was paid once the audit is complete. But for the fiscal year, there was a distribution $2 million for fiscal year 2009 to the City. Vice Chair Carollo: Again, you have to show me. I don't see it. Mr. Simpson: I'll be happy to. Vice Chair Carollo: I don't see it in the 2009 CAFRs, so we're going to have to get together and show me 'cause I don't see it -- Mr. Simpson: Certainly. Vice Chair Carollo: -- which comes to my next question. As far as five million or seven point five million, I'm not going to get into too much detail about that, but even if that money is generated -- that revenue is generated over the expenses, I mean, when are we really going to see it? When would you pay it? Mr. Simpson: We've already paid the City $4 million for this fiscal year. And again, the remaining balance will be remitted to the City once the external audit is completed. Vice Chair Carollo: And this year, I can't see it. I mean, I have some of the actuals that l just realized that had. However, I don't have the same information as the audited financial statements, so I would have to, you know, defer and see what information you have. With regards to something you mentioned with regards to fines, where is that reported, 'cause I couldn't find it? Mr. Noriega: That money doesn't flow through us. We issue citations; the money goes directly to the City ofMiami. Vice Chair Carollo: Or the Clerk of the Courts? Mr. Noriega: Correct, correct. What happens is -- City ofMiami Page 109 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Vice Chair Carollo: Not just -- Mr. Noriega: -- that money's collected by the County, and then the County distributes it to the City; they take their share. The County's percentage is, I think, 55 percent, the City gets 45, which has been an issue and a discussion point amongst a lot of municipalities over the last three years in terms of taking back that process and handling the processing of parking citations as an independent function outside of the County. Vice Chair Carollo: In your MD&A (Management's Discussion and Analysis), in your audited financial statements, it actually stipulates that the amounts are allocated 67 percent to the City of Miami and 33 percent to Dade County. And again, I'm going by your MD&A and your audited financial statements. Mr. Noriega: Yeah. That's just the wrong number. I mean, they can account for it. The County over the years has increased their fees from -- you know, the safety patrol fee and -- they've increased their fees. 'Cause what happens is those dollar amounts are collected and then there are a number of fees that are attached to them, that the County has, by ordinance, attached to those. Vice Chair Carollo: Are any -- Mr. Noriega: And so they take a big chunk of it and then they remit their balance to the City. Vice Chair Carollo: -- of those fees from the MPA (Miami Parking Authority)? Mr. Noriega: No. We don't -- the issuance of citations to us is entirely a direct cost. We get no financial benefit from it. Vice Chair Carollo: That's another thing that I think we need -- Mr. Noriega: We have a report that the County issues, which we'll be happy to send to you. Vice Chair Carollo: Yeah, 'cause again, going from your MD&A, I see 67 percent, City of Miami; 33 percent, Dade County. Mr. Noriega: And that used to be the number a few years back. That information is just probably not updated. Over the years, the County has sort of been creeping back and getting more and more of those fees. Vice Chair Carollo: But this is coming from your September 30 -- Mr. Noriega: I know, but -- Vice Chair Carollo: -- 2009 CAFR. Mr. Noriega: I know. The auditors, obviously, they don't have updated information in terms of the percentages. Because that money doesn't flow directly through us, that information is just incorrect. We'll be happy to get you the correct information because that -- it is absolutely not a two-thirds to one-third split. The County gets the lion's share of the citation revenue. Vice Chair Carollo: Okay. But you understand that I and I'm sure a lot of people that are going to be voting are relying on this audited information that you're saying is incorrect? Mr. Noriega: I know, but it's -- what's happened is because that income or that citation revenue doesn't flow through us, it hasn't been an issue to update it in terms of the auditors. It's just an City ofMiami Page 110 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 oversight. It's made as a reference, but that money doesn't -- we don't in any way, shape, or form collect. We don't handle that money. It goes directly to the County and then the County distributes it to the City. Vice Chair Carollo: Okay. I think you met with the Manager and the Mayor late last week. The Manager had given me some updated numbers maybe you had provided to him or so forth, something that I was looking at. Andl guess today at 8:13 in the morning when I received your e-mail with the updated budget, I looked to see what the Manager had gave me and so forth, and it seem like you wanted to do a 5 percent. But what I realize is that that was attributed to increasing your revenues, and I'm cautious on how reasonable your estimates and increase in revenues are. And you know, like -- particularly, I see on -street here, you're proposing 13 million -- 13.8 million, yet -- and last year's budget was 10.8, so I'm just -- I don't know if that's realistic or not. Mr. Noriega: Yeah. The budget that we submitted and has been reviewed by the City is on the expense side not necessarily the revenue side. On the revenue side, from an on -street standpoint, our hope is because we finalized and upgraded the automation of the machines on -street and we have a full year of the rate increase implemented that we're going to -- those are very aggressive projections on the revenue side. The hope is that we get there. I -- you know, we're making projections based on the fact that we've improved the technology, as well as we have a full year of a rate increase in place. Vice Chair Carollo: But you understand exactly what I'm saying? I mean, in all fairness, if you increase your revenue projections but they don't come in, you know, you actually -- I mean, for a budget point of view, it looks better when you present a budget because you have more revenues, less -- you know, same expense. However, I just don't see in on -street an increase of 28 percent. I don't know if that's really reasonable. Mr. Noriega: But remember, the 5 percent adjustment is not predicated on any of the revenue. It's a 5 percent expense reduction. It's not predicated on us getting any additional revenues. So the 5 percent cut, which is what we were asked to go back and address, is an expense reduction. It has nothing to do with increasing the revenues. In other words, we're not cutting $400,000 worth of expenses and then adding $300, 000 of revenue to get to 700, 000. It is a $705, 000 cost reduction. Vice Chair Carollo: Well, I could tell you thatl definitely saw the increases in the revenue. Mr. Noriega: Correct. Vice Chair Carollo: And that's why -- and from -- Mr. Noriega: And the purpose of that, by the way, is to get to the $7.5 million -- Vice Chair Carollo: Right, but -- Mr. Noriega: -- projection from the City side. Vice Chair Carollo: Projection from the City side. But let's -- if it's not reasonable -- if you're not going to get that revenue, then that 7.5 is reduced. Mr. Noriega: It is. You're absolutely correct. Vice Chair Carollo: So -- I mean -- so that's why it's important to ask whether these revenues are reasonable. City ofMiami Page 111 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Noriega: They're aggressive. Vice Chair Carollo: They're aggressive. Mr. Noriega: They're aggressive. I mean, I'm not going to tell you they're not. They're aggressive. Vice Chair Carollo: Which means that it's a high probability that you do not get to these numbers? Mr. Noriega: I don't know if it's a high probability. But there's an order of magnitude in that as well. I mean, we may not get to 13 million. Maybe we'll get to 12.5 million. It's a function of order of magnitude. We're going to beat this year's numbers, absolutely. It's a function of how well we bridge that gap. They're aggressive numbers. They are. Vice Chair Carollo: And being aggressive numbers, obviously you see why I'm cautious. Mr. Noriega: I am absolutely -- I'm crystal clear on why you have concern. Commissioner Gort: Commissioner -- Chair Sarnoff Commissioner Gort. Commissioner Gort: -- may I ask a question? How long has the automatics [sic] machines have been established? Mr. Noriega: They've been in place as -- in terms of -- we implemented -- first implemented them about five years ago. Commissioner Gort: Five years ago? Mr. Noriega: Yeah, the first phase of it. Commissioner Gort: So you -- well, you almost finished with the whole implementation right now. Mr. Noriega: We are. And what we rolled out this year was the final phase of the sort of regular P&Ds (Pay and Display), and then we purchase from the city of Chicago a number of meters which we basically used to sort of replace some single-space meters where before the costs wouldn't just because we got those meters at really ten cents on the dollar to justify the expense. Commissioner Gort: The reason I ask the question 'cause then you should have some statistics of if it's going up or down. Mr. Noriega: Oh, it is. It's -- it goes up -- every time we implement a P&D and replace a single space, the revenue jumps 25 percent. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff Continue. Vice Chair Carollo: Thank you. Why are your bank charges gone up so much or at least budgeted? City ofMiami Page 112 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Mr. Noriega: Credit card utilization. It's what -- when I explained before that we had taken kind of a $700, 000 hit in two primary line items, which is one was the FDOT leases, the other was bank charges, because credit card utilization is now just become an increasing -- we're collecting less cash. Vice Chair Carollo: Rental building land. I'm seeing you're going from 258 to 729. Mr. Noriega: That's FDOT The lion [sic] share of that is the FDOT leases. Vice Chair Carollo: That's where you were mentioning the -- Mr. Noriega: Yeah. We have -- Vice Chair Carollo: -- leases went up? Mr. Noriega: -- 14 leases that were originally all 30-year leases at $1 a year and FDOT obviously got smart and decided they want to earn income on their right-of-way and now they charge us a flat per -square -foot rate on all of those facilities. Vice Chair Carollo: I made some of the notes here, Art, and at the same time, I'm try -- there were so many things that, you know -- so I'm trying to find it again in the budget because some of these were from the one that was submitted before, but -- and the insurance went up quite a bit. Is it increasing number of employees or why did that occur? Mr. Noriega: Which insurance are you talking about, health or --? Vice Chair Carollo: Hold on, 'cause I -- like I said, I wrote down the notes and that was probably from Sunday, and now I'm trying to (UNINTELLIGIBLE) -- Mr. Noriega: They both decreased. Health and property and casual both went down, and they stayed constant in the new numbers. Vice Chair Carollo: Mr. Chairman. Chair Sarnoff. Go ahead. Vice Chair Carollo: I need a second or two just to retook -- I don't know if any other Commissioners have any questions. Chair Sarnoff. Does anybody else have any questions of the MPA? No. Okay. Vice Chair Carollo: And Mr. Chairman. Chair Sarnoff. You're recognized. Vice Chair Carollo: I guess the question's not to you. The question will probably be to our City Attorney. What are our options? I mean, there's a lot of things that I've asked for, andl guess the best thing would be to meet with the executive director and, I'm sorry, his finance person -- Mr. Noriega: Scott. Vice Chair Carollo: -- Scott in order to get some of the answers. But what are our options? I don't feel comfortable approving this at this present time. Julie O. Bru (City Attorney): Well, the timing of the approval of the budget is something that I City ofMiami Page 113 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 would defer to your chieffinancial officer and to their financial officer to address. But clearly, under the Charter, this Commission does have the authority to approve their budget. And by virtue of that phrase used in the Charter, you have the authority to effect their budget, which is probably what you need to do during, you know, the days leading up to this hearing. Chair Sarnoff Does it have to be passed today? Ms. Bru: That's -- the timing question, I would defer to your chieffinancial officer and theirs. Chair Sarnoff Where's Larry? Ms. Bru: You know, under your financial integrity ordinance, an agency cannot spend any monies that have not been appropriated under a validly adopted budget. So if they have money in their budget that has been appropriated, they can continue to spend, but if they don't, then they wouldn't be able to spend money. Chair Sarnoff Larry, does -- do we have to --? Larry, step up. Larry Spring: Larry Spring, chieffinancial officer. Chair Sarnoff Oh, you're the backstop (UNINTELLIGIBLE), and you -- Mr. Spring: Yeah, I'm the backstop, but -- Chair Sarnoff Do we have to approve the MPA budget tonight? Mr. Spring: What does your Charter say? I would assume you need to appropriate something so they can operate, but -- Chair Sarnoff And if we don't approve -- so in other words, October 1 -- Commissioner Gort: Have to close down. Mayor Regalado: Right -- they would -- they cannot operate? Mr. Spring: Again, I think that's a legal question, Mr. Chair. Chair Sarnoff Okay. I have a -- Mr. Noriega: Can make a suggestion? Commissioner Gort: Legal said it's a Finance question. Mr. Noriega: Can make a suggestion? Chair Sarnoff Sure. Mr. Noriega: In order to expedite the Vice Chair's concerns, could we approve the budget as presented now and then meet with him; if he has any concerns, we can certainly bring those back and amend the budget subsequent to that? Chair Sarnoff I always thought we could amend budgets. I always thought -- Mr. Noriega: Yeah. City ofMiami Page 114 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Commissioner Gort: Yeah. Chair Sarnoff -- that that was -- Mr. Noriega: That we amend the budget whenever you want. Chair Sarnoff Correct. Commissioner Gort: Even after it's been passed -- Mr. Noriega: Yeah. Commissioner Gort: -- you could always bring it back and amend it. Mr. Noriega: And so I'll offer that as a suggestion. Commissioner Gort: Even the total City budget. Mr. Noriega: And it'll facilitate a decision today and then I can certainly meet with him, go over his concerns and whatever questions he may have. And then -- and subsequent to that, if we realize that there's some opportunities to modifi, the budget, you know, additionally, we certainly can bring it back. Chair Sarnoff Well, let's -- Mr. Migoya: Mr. Chair. Chair Sarnoff -- first of all, he's a colleague andl want to see if that's all right with him. Mr. Migoya: Can I -- point of clarification. You were questioning the amount that the MPA gave us in 2009. We did research it. We did receive $2 million. We got $800, 000 on the front end and a million two eighty -- a million two at the end of the year. Vice Chair Carollo: At the end of year. Was that the end of the year? When at the end of the year? Commissioner Gort: Total was? Ms. Gomez: Diana Gomez, Finance director. The 1.2 was posted to September 30. When we actually got it, I don't have the exact date, but it was at September 30 amount. Vice Chair Carollo: 'Cause the CAFR shows the 800, 000, but don't see the -- Ms. Gomez: I'm not sure which -- you're looking at their CAFR? Vice Chair Carollo: Two thousand -- yes, their 2009 CAFR. Ms. Gomez: Yeah. I would have to defer. I would have -- Vice Chair Carollo: It shows the 800, 000. Ms. Gomez: Right. Vice Chair Carollo: That clearly -- City ofMiami Page 115 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Ms. Gomez: We received -- we also received $1.2 million that was posted to our fiscal year 2009. Commissioner Gort: So the total was two point -- Ms. Gomez: Two million, a little over two million. Two million ten thousand. Vice Chair Carollo: The only thing is if it's posted to our 2009 CAFR andl don't see it in their 2009 CAFR, it means maybe they paid us in 2000 -- after the September 30 -- Ms. Gomez: I would have to defer that to their -- Vice Chair Carollo: Is that what happened? Mr. Simpson: Yes. Again, the first installment is paid in June of the current year. The remaining installment isn't [sic] paid typically in January of the following year when our audit is completed. So when they close their books as of September 30, they would put on a receivable for the remaining balance to be paid in January once our audit is completed. Vice Chair Carollo: That's what you're showing in your cash flow is the 800, 000, but not the rest. Mr. Simpson: Correct. Chair Sarnoff Why don't we do this? Why don't we -- let's see if we can entertain a motion, as modified, and see if it passes, and then there's an opportunity to have it reheard on October 14. Vice Chair Carollo: How will I even bring it back? Do I just put it --? Chair Sarnoff If you're -- actually, by the rules of procedures, if you're actually -- if you vote for this, then you have the right to have it reheard. Vice Chair Carollo: And ifI vote against it, then I do not? Chair Sarnoff I don't know if you have that right. Vice Chair Carollo: In the County, I think you don't have the right. However, I'm going vaguely on memory, I think in the City, we've discussed this in the past; and regardless, whether you vote in favor or against, you can bring it back. Chair Sarnoff Mason's requires what, Madam City Attorney? I think Mason's requires you to be a voting member. Ms. Bru: Let me check that. Perhaps the City Clerk knows. Ms. Thompson: An affirmative voting member. Chair Sarnoff Let's see, it's 1 o'clock. Ms. Bru: Okay. Chair Sarnoff Top of your head. Commissioner Gort: Question. City ofMiami Page 116 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Ms. Bru: Mr. Chairman, under Mason's, a motion for reconsideration has to come from the prevailing party. Chair Sarnoff Correct. That's what I thought. You would have to -- I mean, if you want to protect yourself you'd have to vote for it. And then, if you wanted to bring it back on October 14, you can bring it back. Or we could all agree to have it reheard. Commissioner Gort: Can you make it part of the motion to bring it back at --? Chair Sarnoff See, a motion to approve and bring it back -- Commissioner Gort: And bring it back, yes. Chair Sarnoff Can that be done? Ms. Thompson: Chair, may I ask you something? Chair Sarnoff Yes. Ms. Thompson: Okay. What are we trying to do here? Chair Sarnoff We want to -- Ms. Thompson: Just -- let me just -- ifI could walk you through it. Are we trying to go ahead and approve this motion that's on the floor with the mover and the seconder as modified, okay, approve that tonight; and at some other point in time, bring this back, okay, for a review which is, more or less, looking at it for an amendment but not a reconsideration? Chair Sarnoff Okay. I like that. And that's part -- that could be done as a motion. Ms. Thompson: Well, I think what could happen -- and the City Attorney can correct me. I thought heard her say that you all can amend the budget, okay. If you adopt this budget, you can amend it. Is that not what heard? Commissioner Gort: Yes. You could always amend any budget. Ms. Thompson: So if you adopt what you have right here, right now, it -- there appears to be an opportunity for you to bring back another consideration, another looking at the budget, something like that, at some other point in time. Am I correct? Chair Sarnoff What you're saying goes in any motion then can always be brought back -- Commissioner Gort: Sure. Chair Sarnoff -- for reconsideration or rethought. I want to give him some comfort that -- I want to let them operate, but I want him to have -- perform whatever due diligence he thinks he needs to do and, you know, bring back any monies to the City that he thinks he can recapture. And I'm speaking to the Vice Chair. Ms. Thompson: And wouldn't the Commission have the ability to call for that entity to come back, let us review your budget and then we --? Chair Sarnoff Why don't we do this? Why don't we do a motion ratifying this and then somebody tender a second motion to bring them back to the October 14 hearing -- meeting for a full review of their operating budget? City ofMiami Page 117 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 BH.16 10-00944 Virginia Key Beach Park Trust Ms. Thompson: Full review or further? Chair Sarnofff. Further review. Thank you. Further review of their operating budget. So can somebody tender the first motion? Ms. Thompson: Well, right -- you have a motion -- Chair Sarnofff. We already have the motion. All right, we have a motion. We have a second. Any further -- Ms. Thompson: As modified. Chair Sarnofff. As modified. Any further discussion? All in favor, please say aye." Commissioner Gort: Aye. Commissioner Dunn: Aye. Commissioner Suarez: Aye. Chair Sarnofff. Aye. Vice Chair Carollo: No. Chair Sarnofff. All right. Now can somebody tender a motion that they come back to the October 14 Commission meeting for further review? Commissioner Gort: So move. Vice Chair Carollo: So move. Commissioner Dunn: Second. Chair Sarnofff. We have a motion by the Vice Chair, second by Commissioner Suarez. Any further discussion, gentlemen? All in favor, please say aye." The Commission (Collectively): Aye. Okay. Mr. Simpson: Thank you very much. Chair Sarnofff. Okay. Thank you, Madam Clerk. It's much tougher at 1 o'clock in the morning. I just want you to know. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION REQUESTING THE 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 10-00944-Submittal-Packet Submitted by VKBPT During the 9-27-10 Budget Hearing.pdf City ofMiami Page 118 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Motion by Vice Chairman Carollo, seconded by Commissioner Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-10-0432 Chair Sarnoff All right, we are on BH.16. Gene Tinnier Good evening, Mr. Chair and Commissioners. Mr. Forchion will read this. Guy Forchion: Guy Forchion, executive director for the Virginia Key Beach Park Trust. BH.16 is a resolution of the City ofMiami Commission requesting the appropriation of the amount of $106,307 to the Virginia Key Beach Park Trust fiscal year 2009-2010 fund balance. This is the item that came before you on September 14 and was deferred to this meeting to coincide along with our next item, BH.17, which is the total budget. And so I ask for your approval of these funds to the Trust. Vice Chair Carollo: So move. Commissioner Dunn: Second. Chair Sarnoff I have a motion by the Vice Chair, second by Commissioner Dunn. Anyone wishing from the public to be heard on BH.16, please step up. Hearing none, seeing none, coming back to the Commission. Any further discussion, gentlemen? Commissioner Suarez: I just want to note for the record that every time Mr. Range comes, things happen to go more smoothly. I don't know if that's coincidental or what. Vice Chair Carollo: I wish he would have come at the last meeting then. Patrick Range: That's -- Commissioner Suarez: Yeah. Mr. Range: -- very kind of you, Commissioner. I wish that that was true. I can't believe it, though. Commissioner Suarez: No. That's it. Commissioner Dunn: Mr. Chairman. Chair Sarnoff Yes, sir. Commissioner Dunn: I say maybe the latter, that they met with Vice Chair Carollo. Vice Chair Carollo: What's that? I'm sorry. Commissioner Dunn: I say maybe the latter, that they met with you. Chair Sarnoff All right. All in favor, gentlemen, please say aye." The Commission (Collectively): Aye. BH.17 RESOLUTION City ofMiami Page 119 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 10-01101 Virginia Key Beach Park Trust A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE OPERATING FUNDS FOR THE VIRGINIA KEY BEACH PARK TRUSTS FISCAL YEAR 2010-2011 BUDGET, IN THE AMOUNT OF $391,307, AS STATED HEREIN. 10-01101 VK Memos.pdf 10-01101 Legislation.pdf 10-01101-Exhibit-SUB. pdf 10-01101-Submittal-Historic Virginia Key Beach Park 2009-2010 Monthly Revenue Report. pdf 10-01101-Submittal-Packet Submitted by VKBPT During the 9-27-10 Budget Hearing.pdf Motion by Commissioner Dunn II, seconded by Vice Chairman Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-10-0433 Chair Sarnoff: Okay. BH.17. Guy Forchion: BH.17 is a resolution of the City Miami -- Miami City Commission, with attachments, and those are before you now, approving the operating funds for the Virginia Key Beach Park Trust fiscal year 2010-2011 budget in the amount of 391, 307. That amount is the carryover funds of 106, 307, which was just approved, and our projected revenues for this coming fiscal year of 285, 000, for a total of 391, 307. Do you have any questions? Chair Sarnoff. I have a question. What -- predominantly, where do you expect to get the revenues from? Commissioner Gort: Amusement. Chair Sarnoff. I mean, I know there's gate revenues, there's events -- Mr. Forchion: Gate revenues, rentals of pavilions, and larger events that take place: fundraising, golf tournament, renaissance festival, and different concerts that come to the property. Chair Sarnoff. What did you do last year in terms of that very similar activity? Mr. Forchion: We -- Nancy'll hand out a revenue sheet, but 251, 000. And again, there are some funds again that are still take -- still being collected today as of this past weekend, and so we're looking at about a 10 percent increase going into next year. Chair Sarnoff. And how do you factor the 10 percent? I mean, why do you think this will be a 10 percent better year? Mr. Forchion: Well, we're having a much greater success right now with the revenues we're gaining in the Larry Little Legends Golf Tournament, and also the renaissance festival as it comes back. If you remember, when that began last year, it opened during the coldest -- Chair Sarnoff. Oh, yeah. Mr. Forchion: -- weekend and we literally did not operate the first day, and so we anticipate greater funds there. And we've continued to see greater use in the park; public visitors coming in and events wanting to use the property. City ofMiami Page 120 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 Chair Sarnofff. Okay. Thank you. Patrick Range: And Mr. Chair, I'd just like to add that, you know, we've done that. You know, last year we received zero contribution from the City as well. We've done that with two staff members. You know, we manage to, you know, increase the amount of funds we raise, so -- andl really feel like, you know, I mean, if we're not the model department or agency of the City, you know, I mean, I think we -- you know, our staff deserves a really, you know, round of applause or something for what we were asked to do last year. Every -- you know, the cuts that people are being asked to make this year, you know, 5 percent, you know, we went to zero, you know, last year from, you know, over a million dollar contribution from the City annually. And you know, it's really been very, very, very difficult, you know. I cannot express to you, you know, the pains that we've gone through to accommodate, you know, this City in trying to be the partners that we have been, you know. So I think we've really done an outstanding job and, you know, have received, you know, zero recognition of that. But we continue to -- you know, we will do the same again this year and continue to have, you know, the most outstanding park in the City for you. I just want to encourage each of you, if you have not been out and seen the park, you know, please go out; take your nephews, your kids. We really have a fantastic park out there with a number of amenities that are to be enjoyed and really, again, the jewel of the City. I thank you. Chair Sarnofff. Thank you. All right, any other Commissioners have any questions or comments? Vice Chair Carollo: Mr. Chairman. Chair Sarnofff. Vice Chair is recognized. Vice Chair Carollo: I mean, my question was the reasonableness of the revenue. I think you asked a question andl guess it provided this, that -- is the revenue from the current year, so I could see where it seems reasonable. Andl ask 'cause in the past, I think one of the issues was the 109,000 that you estimated and I guess didn't come through. So these are actual revenues that you've received, you've collected? That's what it stipulates. Mr. Forchion: Yes. Vice Chair Carollo: Okay. So that's, more or less, in line with what you're budgeting for, so -- okay, I'm all right with it. Chair Sarnofff. All right. Commissioner Suarez: Mr. Chairman. Chair Sarnofff. Commissioner Suarez, you're recognized. Commissioner Suarez: If for some reason, the revenues are coming in less than expected, we can come back and have a budget amendment at some point in the middle of the year to make an adjustment for that, I would imagine, correct? Commissioner Gort: Yes. Mr. Forchion: Yes. That's my understanding. Mid year adjustments are done often. Commissioner Suarez: Mr. Chairman, I'd like to commend the Vice Chairman because these are the kinds of budgets and the detail of the budgets that we should be expecting from every single de -- and we are getting now, thanks in very, very large part to the Vice Chairman's insistence on this. So I want to just take this opportunity to recognize that and to tell you that l feel much more City ofMiami Page 121 Printed on 10/25/2010 City Commission Meeting Minutes September 27, 2010 educated in the decisions that I'm making as a result of the information that I'm getting. You deserve the credit for that. Commissioner Gort: I knew we were getting two for the price of one. We're getting the Commissioner and an auditor, so that's great. I agree with you. Chair Sarnofff. All right. Any further discussion, gentlemen? All right, we have a motion. We have a second. Am I correct? Priscilla A. Thompson (City Clerk): No. Chair Sarnofff. We do not. We need a -- is there a mover? Commissioner Dunn: So move. Vice Chair Carollo: Second. Chair Sarnofff. Motion by Commissioner Dunn, second by the Vice Chair. Have I opened and closed the public hearing? Ms. Thompson: No, sir. Chair Sarnofff. All right. The public hearing on BH.17, anyone wishing to speak, please step up. Hearing none, seeing none, coming back to the Commission. Any further discussion? Hearing no further discussion, all in favor, please say aye." The Commission (Collectively): Aye. Chair Sarnofff. Okay. Mr. Forchion: Thank you, Commissioners. ADJOURNMENT A motion was made by Commissioner Suarez, seconded by Commissioner Gort, and was passed unanimously, to adjourn today's meeting. City ofMiami Page 122 Printed on 10/25/2010