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HomeMy WebLinkAboutCC 2011-07-14 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com 1 r V drCuRe 4RATtI ! L Meeting Minutes Thursday, July 14, 2011 9:00 AM REGULAR OCity Hall Commission Chambers City Commission Tomas Regalado, Mayor Wifredo (Willy) Gort, Chairman Frank Carollo, Vice -Chairman Marc David Sarnoff, Commissioner District Two Francis Suarez, Commissioner District Four Richard P. Dunn 11, Commissioner District Five Johnny Martinez, City Manager Julie O. Bru, City Attorney Priscilla A. Thompson, City Clerk City Commission Meeting Minutes July 14, 2011 CONTENTS PR - PRESENTATIONS AND PROCLAMATIONS MV - MAYORAL VETOES AM -APPROVING MINUTES CA - CONSENT AGENDA PH - PUBLIC HEARINGS SR - SECOND READING ORDINANCES FR - FIRST READING ORDINANCES RE - RESOLUTIONS BC - BOARDS AND COMMITTEES DI - DISCUSSION ITEMS PART B MAYOR AND COMMISSIONERS' ITEMS M - MAYOR'S ITEMS D1 - DISTRICT 1 ITEMS D2 - DISTRICT 2 ITEMS D3 - DISTRICT 3 ITEMS D4 - DISTRICT 4 ITEMS D5 - DISTRICT 5 ITEMS Minutes are transcribed verbatim. Periodically, agenda items are revisited during a meeting. [Later...J'fefers to discussions that were interrupted and later continued. City ofMiami Page 2 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 9:00 A.M. PRESENTATIONS AND PROCLAMATIONS PR.1 11-00609 PRESENTATION Honoree Presenter Protocol Item Gary Reshefsky Mayor Regalado Certificate of Appreciation Risk Management Kareem Lodge Commissioner Suarez Certificate of Appreciation Special Awards - Four Small Business Association (SBA) National Award Winners are Honored by the City of Miami 11-00609 Protocol Item.pdf PRESENTED 1. Mayor Regalado presented a Certificate of Appreciation to Gary Reshefsky in recognition of his service and dedication as a member of the professional administrative team of the City of Miami; further applauding Mr. Reshefsky role as a catalyst for innovative approaches to insurance programs and claims management. Chair Gort: At this time, I believe we have one proclamation by the Mayor. Presentation made. INVOCATION AND PLEDGE OF ALLEGIANCE Present: Chairman Gort, Commissioner Sarnoff, Vice Chairman Carollo, Commissioner Suarez and Commissioner Dunn II On the 14th day of July 2011, the City Commission of the City ofMiami, Florida, met at its regular meeting place in City Hall, 3500 Pan American Drive, Miami, Florida, in regular session. The meeting was called to order by Chair Gort at 9: 37 a.m., recessed at 12: 27 p.m., reconvened at 2: 53 p. m., recessed at 6: 04 p.m., reconvened at 6: 42 p. m., recessed at 8:10 p.m., reconvened at 8:35 p.m., and adjourned at 9:16p.m. Note for the record: Commissioner Dunn entered the chambers at 9: 42 a.m., and Vice Chair Carollo entered the chambers at 9: 45 a.m. Chair Gort: (INAUDIBLE) Suarez, and myself W fredo "Willy" Gort. At this time, I would like to have Commissioner Suarez -- With us also we have City Manager Johnny Martinez, Julie Bru, the City Attorney, and we have Tom [sic] Hannon, standing for Priscilla Thompson. At this time, we're going to have the invocation by Commissioner Suarez and the pledge of allegiance by Commissioner Sarnoff. Invocation and pledge of allegiance delivered. MAYORAL VETOES City ofMiami Page 3 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 NO MAYORAL VETOES Johnny Martinez (City Manager): Excuse me. Chair Gort: Now withdrawals. Mr. Martinez: Commissioner -- Chair Gort: No. Wait a minute. Mr. Martinez: Mr. Chair. I need to clar -- Chair Gort: You were going to request to -- Todd Hannon (Assistant City Clerk): If you'd like, we could do those now. There are -- Chair Gort: Yes. Mr. Hannon: -- no mayoral vetoes. Chair Gort: Right. Mr. Hannon: And if you would like to take a vote on the June 9 minutes, we can do so. Chair Gort: Okay. Commissioner Sarnoff. So -- Chair Gort: Let's wait for that when we get a full Commission. Now my understanding is you also want to defer the board -- Mr. Hannon: We can get to that as we start to do the withdrawals, the continuances and deferrals. Chair Gort: Okay. Mr. Hannon: Yes, sir. APPROVING THE MINUTES OF THE FOLLOWING MEETING: Motion by Commissioner Sarnoff, seconded by Commissioner Dunn II, to APPROVED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II Chair Gort: The minutes. Do I have a motion for the minute -- approval of the minutes? Commissioner Sarnoff. So move. Commissioner Dunn: Second. Commissioner Suarez: Second. Chair Gort: Been moved and second. Any further discussion? Being none, all in favor, state it saying "aye." The Commission (Collectively): Aye. City ofMiami Page 4 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 ORDER OF THE DAY Vice Chair Carollo: June 9 minutes? Chair Gort: Beg your pardon? Vice Chair Carollo: The June 9 minutes. Chair Gort: Yes. Vice Chair Carollo: Okay. Chair Gort: Okay, we have Vice Chairman Carollo and Commissioner Dunn on board. Thank you. END OF APPROVING MINUTES Chair Gort: We'll now begin the regular meeting. Madam City Attorney will state the procedure to be followed Maria J. Chiaro (Deputy City Attorney): Any person who is a lobbyist must register with the City Clerk before appearing before the City Commission. A copy of the Code section concerning lobbyists is available in the City Clerk's office. The material for each item on the agenda is available during business hours at the City Clerk's office and online at the City's web site. Anyone wishing to appeal any decision made by the City Commission for any matter considered at this meeting may need a verbatim record of the item. No cell phones or other noise -making devices are permitted in the Commission chambers. Please silence those devices now. Any person making offensive comments and who becomes unruly in the Commission chambers will be barred from further attending City Commission meetings. Any person with a disability requiring auxiliary aids and services for this meeting may notifi, the City Clerk. The lunch recess will begin at the conclusion of the deliberation of the item being considered at noon. The meeting will end either at the conclusion of the deliberation of the agenda item being considered at 10 p.m. or at the conclusion of the regularly scheduled agenda, whichever occurs first. Mr. Chairman, you may announce the items that are either being withdrawn, deferred, or substituted. Chair Gort: Thank you, Ma'am. [Later..] Chair Gort: Let me ask a question. Is anyone like to pull any item from the consent agenda so we can take care of the consent agenda? Vice Chair Carollo: Is it possible to do this first or do we have --? Chair Gort: We have some people waiting. Todd Hannon (Assistant City Clerk): It's the will of the Commission. Vice Chair Carollo: There's -- Chair Gort: Is there any items you would like to pull out of the consent agenda? Vice Chair Carollo: There is one item that want to pull. Chair Gort: Okay, what's the item? City ofMiami Page 5 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: CA.1. Chair Gort: CA.1. Vice Chair Carollo: And I'm sure I'm going to have Commissioner Sarnoff a little upset at me later on. Commissioner Sarnoff. I don't mind. Chair Gort: Okay. Johnny Martinez (City Manager): Mr. Chair, I have some deferrals from the regular agenda. Chair Gort: CA.1? Mr. Martinez: No, regular agenda. Vice Chair Carollo: Yeah, but this is -- we're -- I think we're pulling -- Mr. Martinez: Oh, okay. Got it. Chair Gort: We're pulling. Vice Chair Carollo: -- so we can vote and get the CA (Consent Agenda) agenda. Chair Gort: So you're pulling CA.1? Vice Chair Carollo: Yes. Chair Gort: Okay. Do I have anyone else like to pull any --? Commissioner Dunn: Yes. Chair Gort: Yes, sir. Commissioner Dunn: I want to defer the RE. 17 item 'til the June -- I mean, sorry, to the 28th meeting of this month, July 28. Chair Gort: RE (Resolution)? Commissioner Dunn: RE. 17. Chair Gort: Seventeen. Anyone else? Anyone else? Yes, sir. Mr. Martinez: From the regular agenda, I'd like to -- RE. 5, defer to July 28; PH. 5, defer to July 28; RE.7, defer to July 28; RE.8, defer to September 15; RE.10, to July 28; RE.9, to October 13. RE.17 was just deferred. And then BC. 1 through BC.21, defer to July 28. Mr. Hannon: We'll just continue those items, Mr. City Manager. We'll continue the BC (Boards and Committees) items to the first meeting -- Chair Gort: The BCs will continue to -- Mr. Hannon: -- in September. City ofMiami Page 6 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Yes. Mr. Martinez: Okay, that's it. Chair Gort: Okay. Do I have a motion to -- first of all, for the consent agenda, with exception -- Commissioner Sarnoff.. You want to pull 1, right? Chair Gort: One. Vice Chair Carollo: Right. I want to pull 1, and think Commissioner Dunn pulled another. Commissioner Dunn: RE.17. Commissioner Sarnoff.. No, no, on the CAs. Commissioner Dunn: No, on the CA. Chair Gort: No, on consent agenda. Commissioner Dunn: Okay. Vice Chair Carollo: Consent agenda. Okay, I make -- Commissioner Sarnoff.. I'll make -- Vice Chair Carollo: -- a motion. Mr. Hannon: Excuse me, gentlemen. Can we first -- let's just vote on the continuances and all that first? If you'd like, I can -- Commissioner Sarnoff.. So moved. Mr. Hannon: -- go over the list again. Commissioner Sarnoff.. So moved as stated. Chair Gort: Been moved by -- Vice Chair Carollo: Second. Chair Gort: -- Commissioner Sarnoff, second by Vice Chairman Carollo. Vice Chair Carollo: The only thing is I want to confirm what are the items, if we can say it one more time, or if the -- Mr. City Clerk, if you could just go over them and make sure what are the items. Mr. Hannon: Yes, sir. Let me go through my list here real quick. I have for RE.17, we're deferring to 7/28. RE.5, we're deferring to 7/28. PH.5, we're deferring to 7/28. RE.7, we're deferring to 7/28. RE.8, we are continuing to the first meeting in September, which is September 15. RE.10, we are deferring to 7/28. RE.9, we are deferring to October 13. And we are continuing all of the BC items to the first meeting in September, which is 9/15. And we are going to -- City ofMiami Page 7 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. Second the motion. Chair Gort: It's been moved -- Vice Chair Carollo: Yeah. I thought -- okay. Chair Gort: -- Vice Chairman Carollo, second by Commissioner Sarnoff. Any further discussion? Being none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. City ofMiami Page 8 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 CONSENT AGENDA CA.1 RESOLUTION 11-00496 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NUMBER 6 TO THE USE AGREEMENT WITH TVM PRODUCTIONS, INC. ("TVM"), IN SUBSTANTIALLY THE ATTACHED FORM, ALLOWING TVM TO CONTINUE FILMING THE TELEVISION SHOW "BURN NOTICE" AT THE COCONUT GROVE EXPOSITION CENTER THROUGH OCTOBER 31, 2012, AS STATED HEREIN. 11-00496 Summary Form.pdf 11-00496 Letter - TVM Productions, Inc.pdf 11-00496 Pre-Legislation.pdf 11-00496 Legislation.pdf 11-00496 Exhibit 1 SUB.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, 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-11-0285 Chair Gort: Let me ask a question. Can we bring up CA.1? One of the reasons I think Miami has become so famous throughout the world is the -- we're seen in all the different TV (Television) programs and films and so on, and I think that sells Miami quite a bit. And CA.1 has got to do with Burn Notice. Vice Chair Carollo: Yes. Chair Gort: CA.1. Vice Chair Carollo: Yeah, I asked to pull it. I don't know if someone's going to present it or -- I don't really need someone to present it. I'll say my issue. But if someone presents -- and I'll say -- And Commissioner Sarnoff, I know you're going to be upset at me, but -- Commissioner Sarnoff. I'm never mad at you. Vice Chair Carollo: I know you're going to be upset at me but -- Commissioner Sarnoff. I'm never mad at you. Sometimes I get upset, but I'm never mad at you. Daniel Newhoff (Assistant Director): Morning. Daniel Newhoff Department of Public Facilities. Commissioner Suarez: What bucket is that in? Commissioner Sarnoff. That's in the reserve bucket. Chair Gort: CA.1. Vice Chair Carollo: That's where -- City ofMiami Page 9 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Newhoff. CA.1 's a resolution of the Commission, with attachments, authorizing the Manager to execute amendment number six to the use agreement for the filming of the TV show Burn Notice at the Expo Center. They are currently using -- Chair Gort: Bring the mike up, please. Mr. Newhoff. I'm sorry. Can you hear me? Chair Gort: No. You can turn it up. Mr. Newhoff. I apologize. Chair Gort: No, no problem. Mr. Newhoff. CA.1 is a resolution of the Commission authorizing amendment number six to the use agreement with TVM Productions. They're currently at the Expo Center utilizing about 100,000 square feet for their successful TV show. We're presenting this item to keep the rent still at $20, 000 a month and have them continue to cover all expenses associated with the building. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes. Vice Chair Carollo: I have no problem with keeping the same rent amount and continuing with Burn Notice there. This is going to generate approximately $240, 000 in the year. Mr. Newhoff. Right. Vice Chair Carollo: Andl know it's for a 13-month, so it's actually 260, but for next year, it will be 240, 000. Now -- and again, Commissioner Sarnoff, I know you're going to be upset, but at the same time, you just listened to, you know, 22 days of furloughs and so forth. These $240, 000 right now, as is stated, is for Coconut Grove master plan for waterfront improvements. I would ask that this $240, 000 actually go to the general fund, at least for this year, to start covering some of the hole that we have. And $240, 000 is a lot of money. And you know, when we're forgoing police vehicles, when we're forgoing, you know, equipment for fire safety, I mean, you have to take priority and, you know -- and know this is important to you and it's important to your district. That's why, you know, like I said, I know you're going to be upset with me, but realistically, I need to start putting priorities into place. And yes, I'm already not just saying tackling different money pots that I'm seeing. So I don't have a problem, you know, voting for this. I truly feel that, at least for this year, that money should go to the general fund. And by the way, I just want to point this out. When I spoke about the retail at the Marlins stadium, I said that money will go to the general fund. I never tried to do a special district or anything for that money to stay in District 3. So, you know, with that, I think that here we need to look a little bit more as a whole city because we're going to tackle -- and you know because we've already been through it. It's going to be a very difficult situation pretty soon, so I'm seeing here $240, 000 that could definitely be a good amount to the general fund. Chair Gort: Thank you. Commissioner Sarnoff. And Commissioner, I certainly laud you for bringing that up because it's something that should be addressed and should be publicly discussed amongst the Commission. You know, I could bring up the fact that that is a plan that has been approved for a number of years and it has, and we brought Burn Notice in fully well intending and knowing that that was going to help pay for that. What I'd also like you to do, because I know you're not penny-wise and pound foolish, is to let you know that that money's been leveraged. That money's been City ofMiami Page 10 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 leveraged with FIND (Florida Inland Navigation District) money. So for every one dollar, you get two dollars in return. So what we've been doing with that money is when we go to start to implement the plan, we put down a dollar and the Florida Inland Navigation District puts down a dollar, and that has been how we've been able to start the implementation of the plan. I think you also know that it has been my interest to get a facility that is -- certainly doesn't belong on the waterfront in its use taken out of that facility, and) think you know I have done everything I can do to create a movie studio or hopeful movie studio in what we call the -- they call it the MIC, but I happen to call it the Skills Center. And the Skills Center, as you know, will come before us I think July 25, so it's my intention hopefully that Burn Notice will inevitably go into that facility or will at least have the ability to put other movie production studios in that facility. You know, I -- we always start with a position always trying to get to consensus, and) want to get to consensus. You would say I want to put 240,000 in. I would, of course, say I'd like to put none. What) would offer to you is a compromise and that compromise would be why don't we put half of the money into it because we still have dollars that we can leverage to keep, in theory, that same 240 by using FIND money to backfill it. But ifI don't -- if we don't have that money -- you know, and I've always kind of marveled because City Hall is for all of us. And by the way, the Coconut Grove master plan is for all of us. I mean, when I did the work to Kennedy Park, when it was -- forgive me, I don't remember your aunt's name, but -- What is it? Commissioner Suarez: (UNINTET,T IGIBT ,F) Commissioner Sarnoff.. (UNINTET,T IGIBT,F). When I did the work for Kennedy Park -- you know, Kennedy Park is not for Coconut Grovites. It's for every Miamian. It's -- the gym facilities, the rubber running surface, you know. I guess you don't even have to live in Miami. Andl inevitably want to get the Coconut Grove master plan started and underway, butt readily acknowledge that -- you know, I know I shouldn't say this in public and) know I shouldn't make this comparison, but if the City ofMiami in 2009 were an overweight person, we trimmed a lot of fat. And in 2011, she might have two or three pounds on her, but we're going to be trimming ten pounds off of her. We're going to cut muscle, and) think we know that. I think instinctively you guys have been up here long enough to know it's no longer about programs that don't work. It's no longer about moving things around. It's about maintaining a service level that we're trying to keep. So I readily agree with you and acknowledge it, and what I would propose to you is let us use 120,000 of that money so we can leverage 120,000 of that money, continue on in the Coconut Grove master plan, and it would be, I think, a good compromise and hopefully a consensus of the board. Vice Chair Carollo: Mr. Chairman. Chair Gort: Thank you. Yes, sir. Vice Chair Carollo: Obviously, my preference would be the 240. However, I take anything that I can get, you know; 120, definitely. Because the truth of the matter is, you know, we're all going to be facing a difficult vote, I mean, and we need to find real dollars to see how much of those furloughs we could take away and how much, you know -- realistically, how we could balance this budget not on the backs of the employees, not on the backs of the taxpayers, and realistically make the prudent decisions when it comes to priorities. So, you know, again, I'll take the 120. Expect me to be doing a lot more of this. And again, you know how -- I guess what I'm trying to say, this isn't a district thing right now. This is realistically now as a whole, we need to look everywhere, and that's why. Don't think that it didn't pass my mind when I'm looking at the retail and I'm saying, hey, this could generate quite a bit of revenues. Hey, you know, ifI could get 25 percent or a percentage for my district since it's generating it and so forth -- but I didn't. You saw that I said 100 percent to the general fund because the truth of the matter is, right now that's where we need it. As a matter -- Commissioner Sarnoff.. And -- City ofMiami Page 11 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: -- I'll go a step further. Commissioner Sarnoff.. -- don't hesitate in two years, should the financial urgency wane, because the one thing you've said, and you're right, you talk about a community that could use a CRA (Community Redevelopment Agency), right there. Vice Chair Carollo: Right. However -- and believe me, I've spoken with the County Commissioner about it and he's outright told me, Frank, go. I mean, 100 percent, I'll be behind you. However, what may be great for my district may not necessarily be great for the City of Miami as a whole, andl'm saying doing a CRA in that area because again, the money will -- you know, will not go to fire, will not go to police, will not go to solid waste. So I'm using the excuse of the stadium going there and the retail to try to revitalize that area, and that's when I made the comparison as far as that sort of our -- you know, my CRA, andl'm trying to do as much as I can with, you know, what have. So again, I accept the compromise and, you know, I'm going to be looking at everywhere that can, you know, in departments and so forth to actually bring real dollars into this budget. And from those $500, 000 that we were off now, you know, we're a little less. We have an additional 120,000 that can go to the general fund. So thank you, Commissioner. Chair Gort: Gentlemen, let me tell you. One of the things that -- although we have election by districts, the one thing l feel very comfortable about this Commission is we look at the City as a whole. When you look at the public facility, most of the funds from the public facilities do come into the general funds. Now the Coconut Grove, since I've been here a long time ago, has been going through studies and studies. Andl think we spend --I don't know how many millions of dollars we have spent andl think we have about 20 different studies (UNINTELLIGIBLE) to do with this one area. So hopefully now with these funds we'll be able to accomplish something. Any idea when -- because I know Burn Notice would like to get some information on that. Commissioner Sarnoff.. Well -- and this is -- I didn't want to -- you know, I didn't want to be the Commissioner that said let's kick Burn Notice out of the City ofMiami. I wanted to be the Commissioner that said the CRA has created a state-of-the-art movie production studio that has available to it space for rent for Burn Notice, and whatever that market rent would generate. And maybe it's 20,000, and maybe it's a lot more than 20,000, but you know what? We don't have that expertise, but we'll get it. Andl wanted to be the Commissioner to make the offer and invitation to Burn Notice, if it's still in syndication -- I shouldn't say syndication -- if it's still in production to go over there and maybe there'll be something else after Burn Notice called Burn Notice II or It Got Burnt or how to read -- no -- you know, the non -charcoal version, whatever. There will always be something coming to Miami. So, you know, I want to create a movie production studio. I mean, I will say this clearly on the record and maybe you all could agree or disagree with me. I don't think the City of Miami's film production studio belongs on the waterfront. When I come into City Hall andl look at seven or eight burned -out hulks of vehicles, I just don't see that as something that attracts people. Now I've been in my Commission chambers and people have said, I see a ton of people taking pictures there, and maybe I'm wrong, but for my own sake, I see Coconut Grove having -- you know, I'm not saying no buildings here, but a bigger, greener space that would afford us the opportunity to allow people to come congregate, have concerts, things like that, that is really more of a green space type thing. Chair Gort: I have a motion by Vice Chairman -- Commissioner Dunn: Second. Chair Gort: -- Carollo. City ofMiami Page 12 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Hold on, hold on. Before -- I'll make the motion in a second. And Mr. Chairman, ifI may? Chair Gort: Yes. Vice Chair Carollo: I just want to point out that, you know, again, I'm proud of this Commission, how we again discuss and come together and you know, find consensus, and yes, we look at the City ofMiami as a whole, but at the same time, we respect each other's district. Commissioner Dunn: Yeah. Vice Chair Carollo: Andl think that's important. I remember the studio in the CRA. As a matter of fact, I voted for it. And yielded to your wisdom in that, and you know I was a little skeptical, butt yielded to you, you know, and guess that's working as a team. That's the -- Commissioner Sarnoff.. And it's going to be a leap offaith because -- You want to know something. I listen to Commissioner Dunn. Vice Chair Carollo: I could even tell you the amount that we approved for it. I'll go that far. That's how well I know that vote. And yes, it was a leap offaith. Commissioner Sarnoff.. It is. And Commissioner Dunn made a speech at -- I guess it was the beginning of Rock of Ages. Can you tell us what you said again? Commissioner Dunn: Oh, God. I believe -- was it my definition of vision? Commissioner Sarnoff.. No, no, no, no, where you talked about Disney. Remember, you said Disney came to the -- Commissioner Dunn: Oh, absolutely, absolutely. My father told me the story, and it's an accurate story, that the principals and founders of Disney actually, in fact, came to the City of Miami, Miami -Dade County, to make the offer to us and for some reason we lacked the vision, the faith, and as a result, they went to Orlando. Well, you know what happened after that. Orlando is the number -one vacation capital of the world, so we missed out on an opportunity. And so I wanted to say that I commend you, Commissioner Sarnoff, for your vision, and in my definition of vision is being able to see what others can't see. And it is -- sometimes on the front end you can't see it, but down the road you can appreciate the efforts that have been made. And it is placing the City ofMiami -- watch this -- not from a -- just a CRA perspective, not just from a district perspective, but it is placing the City ofMiami in a very enviable position because now we are able to lure or attract, you know, people like Rock ofAges and others that may be down the road. And like you said, this may be for Burn Notice today, but who will it be tomorrow? But if we're not prepared to receive or be in place -- there's a term that I use. When God is blessing, you want to be in the right place, you want to be where he's blessing. You don't want to be out -of -place because you could miss the blessing. Chair Gort: Thank you. Mr. Mayor. Mayor Tomas Regalado: I just want to say something. First of all, I support the item that you all are going to vote for and understand the conversation. I think that people should not be misled by the debate of how to use the funds in terms of looking that the City is sort of adversarial to this filming. And you know, last night at midnight and this morning at 5 a.m. Rock ofAges was filming in Miami Avenue. Burn Notice is at full speed filming right now, and Charlie's Angels is going to start filming in late July here in the City ofMiami, you know. Of course, we are not in the business of marketing the City because that's the Greater Miami Convention and Visitors Bureau. But if we were to pay just one -tenth of I percent of the image of City ofMiami Page 13 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 the City ofMiami throughout the world -- Burn Notice is now in 53 countries and then Rock of Ages and Charlie's Angels. I think we have a phenomenal item that we can support to send the message that we are friendly to the film industry. Andl think that the conversation should not be mistaken -- Chair Gort: Right. Mayor Regalado: -- in terms of how to use the funds and not wanting that -- just want to say -- Commissioner Sarnoff.. And just so that Commissioner Carollo understands this, I think it was completely appropriate for you to do. I think it's completely -- I think it's a debate that's a fair debate. I'm actually sort of glad you had the debate because I can't talk to you about what's going to go on in the CRA. I can't tell you about what our intentions are for the Skill Center. You know, I can obviously let the director of the CRA do that, but I think for some reason you want to look deep in my eyes and think to yourself, did you do your due diligence? Do you know what you're doing? Am I going to take this leap offaith with you because this will fall on me 'cause I'm the same vote as you. Andl completely get it. And by the way, July 25, some ofyou will take a leap offaith and we will either be right, and to some people in this audience, we will be wrong no matter what we do and that's even if it's successful because it's the nature of people, you know. And part of being a visionary and -- you know, that's a nice word. I think it's a cool word, visionary. Part of moving this City along is being the windshield, and you're going to get hit with a lot of bugs, but you have to be that windshield. And you're good at it financially andl expect you to pick it apart every which way, and you're right to do so. But be that as it may, I think your discussion was appropriate, I think your intentions are pure, and you are looking out for the entire City ofMiami. And say what we want, when this board gets together as five and we become a Commission versus being Commissioners, I have ever once not been proud of this Commission since this Commission has sat. Chair Gort: Thank you. Vice Chair Carollo: Thank you. Mr. Chairman. Chair Gort: Yes. Vice Chair Carollo: Before I make the motion, I want to say two things. First, I agree 100 percent with what the Mayor's saying. He is truly correct. And the second thing want to say before I make the motion is that, you know, I appreciate my colleague knowing that I'm just acting in good faith and doing my due diligence. This was nothing personal. This is just about, listen, we're in a financial crisis and we need to realistically now come together and look every which way for dollars. And with that said, I will make a motion to approve CA.1 with an amendment that $10, 000 per month of the revenues go to the general fund and the other $10, 000 a month of the revenue go to support the Coconut Grove master plan for waterfront improvements. Commissioner Sarnoff.. 171 second the motion. Chair Gort: There's a motion by Vice Chairman Carollo, a second by Commissioner Sarnoff. Is there any further discussion? Being none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. Todd Hannon (Assistant City Clerk): And that's as amended. Vice Chair Carollo: Mr. Chairman. City ofMiami Page 14 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Johnny Martinez (City Manager): Mirtha's feeling better. Chair Gort: Can we go into --? Vice Chair Carollo: I got you down to 380, Johnny. From the 500, I got you down to 380 so -- Chair Gort: We keep working at it. Vice Chair Carollo: -- we're getting there. We're getting there. CA.2 RESOLUTION 11-00497 Department of A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING THE BID Fire -Rescue RECEIVED APRIL 6, 2011, PURSUANT TO INVITATION FOR BID NO. 245245, FROM HENRY SCHEIN, INC., THE SOLE RESPONSIVE AND RESPONSIBLE BIDDER FOR THE PROCUREMENT OF STRETCHERS AND ACCESSORIES FOR THE DEPARTMENT OF FIRE -RESCUE, ON AN AS -NEEDED CONTRACTUAL BASIS, FOR AN INITIAL PERIOD OF ONE (1) YEAR, WITH OPTIONS TO RENEW FOR THREE (3) ADDITIONAL ONE (1) YEAR PERIODS; ALLOCATING FUNDS FROM THE VARIOUS SOURCES OF FUNDS OF THE USER DEPARTMENT, SUBJECT TO THE AVAILABILITY OF FUNDS AND BUDGETARY APPROVAL AT THE TIME OF NEED. 11-00497 Summary Form.pdf 11-00497 Tabulation.pdf 11-00497 Letter - Response to Invitation Bid.pdf 11-00497 Email from Ferno.pdf 11-00497 Letter - Best and Final Offer.pdf 11-00497 Invitation for Bid.pdf 11-00497 Legislation.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0276 CA.3 RESOLUTION 11-00498 Department of NET A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Administration ATTACHMENT(S), ESTABLISHING A SPECIAL REVENUE PROJECT ENTITLED: "2011 MIAMI-METRO HOMELESS ASSISTANCE PROGRAM -SOUTH" AND ACCEPTING AND APPROPRIATING FUNDS, IN AN AMOUNT NOT TO EXCEED $138,789, CONSISTING OF A GRANT FROM THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, THROUGH THE MIAMI-DA DE COUNTY HOMELESS TRUST; FURTHER APPROPRIATING THE CITY OF MIAMI'S REQUIRED MATCHING FUNDS, IN AN AMOUNT NOT TO EXCEED $33,047, FOR A TWELVE-MONTH PERIOD, TO PROVIDE OUTREACH, INFORMATION, REFERRAL, ASSESSMENT AND PLACEMENT SERVICES TO HOMELESS INDIVIDUALS IN MIAMI-DADE COUNTY; AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, IN ORDER TO IMPLEMENT THE ACCEPTANCE OF City ofMiami Page 15 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 SAID GRANTAWARD. 11-00498 Summary Form.pdf 11-00498 Letter from Miami -Dade County - Homeless Trust.pdf 11-00498 Legislation.pdf 11-00498 Exhibit 1.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0277 CA.4 RESOLUTION 11-00499 Department of NET A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Administration ATTACHMENT(S), ESTABLISHING A SPECIAL REVENUE PROJECT ENTITLED: "2011 MIAMI-METRO HOMELESS ASSISTANCE PROGRAM -NORTH" AND ACCEPTING AND APPROPRIATING FUNDS, IN AN AMOUNT NOT TO EXCEED $292,660, CONSISTING OF A GRANT FROM THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, THROUGH THE MIAMI-DADE COUNTY HOMELESS TRUST; FURTHER APPROPRIATING THE CITY OF MIAMI'S REQUIRED MATCHING FUNDS, IN AN AMOUNT NOT TO EXCEED $69,681, FOR A TWELVE-MONTH PERIOD, TO PROVIDE OUTREACH, INFORMATION, REFERRAL, ASSESSMENT AND PLACEMENT SERVICES TO HOMELESS INDIVIDUALS IN MIAMI-DADE COUNTY; AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, IN ORDER TO IMPLEMENT THE ACCEPTANCE OF SAID GRANTAWARD. 11-00499 Summary Form.pdf 11-00499 Legislation.pdf 11-00499 Exhibit 1.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0278 CA.5 RESOLUTION 11-00527 Department of Police A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING THE BID RECEIVED MAY 27, 2011, PURSUANT TO INVITATION FOR BID NO. 269276, FROM ROTORTECH SERVICES, INC., FOR THE PROVISION OF HELICOPTER MAINTENANCE AND REPAIR SERVICES, FOR THE DEPARTMENT OF POLICE, FOR AN INITIAL CONTRACT PERIOD OF ONE (1) YEAR, WITH THE OPTION TO RENEW FOR FOUR (4) ADDITIONAL ONE (1) YEAR PERIODS, IN AN ANNUAL AMOUNT NOT TO EXCEED $31,593; ALLOCATING FUNDS FROM THE VARIOUS SOURCES OF FUNDS FROM THE USER DEPARTMENT, SUBJECT TO THE AVAILABILITY OF FUNDS AND BUDGETARY APPROVAL AT THE TIME OF NEED. City ofMiami Page 16 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00527 Summary Form.pdf 11-00527 Award Recommendation Form.pdf 11-00527 Tabulation of Bid.pdf 11-00527 Email from City of Miami.pdf 11-00527 Invitation for Bid.pdf 11-00527 Legislation.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0279 CA.6 RESOLUTION 11-00572 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT ("LEASE"), IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI AND GROVITES UNITED TO SURVIVE, INC., A FLORIDA CORPORATION, FOR THE LEASE OF REAL PROPERTY LOCATED AT 3686 GRAND AVENUE, MIAMI, FLORIDA, FOR THE PURPOSE OF ESTABLISHING A RECREATIONAL FACILITY FOR THE MIAMI POLICE ATHLETIC LEAGUE PROGRAM, FORA ONE (1) YEAR PERIOD, WITH FIVE (5) OPTIONS TO RENEW FOR ADDITIONAL TERMS OF ONE (1) YEAR EACH; ALLOCATING FUNDS FROM THE MIAMI POLICE ATHLETIC LEAGUE ACCOUNT, WITH ADDITIONAL TERMS AND CONDITIONS AS MORE PARTICULARLY SET FORTH IN THE LEASE; FURTHER AUTHORIZING THE CITY MANAGER TO APPROVE AND EXECUTE ALL NECESSARY, NON -SUBSTANTIVE AMENDMENTS TO SAID LEASE, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. 11-00572 Summary Form.pdf 11-00572 Comparables.pdf 11-00572 Legislation.pdf 11-00572 Exhibit 1.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0280 CA.7 RESOLUTION 11-00610 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE A REVOCABLE LICENSE AGREEMENT ("AGREEMENT"), IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI ("CITY") AND BOUYGUES CIVIL WORKS FLORIDA, INC., A FLORIDA FOR PROFIT CORPORATION ("LICENSEE"), FOR THE USE OF FOUR AND ONE-HALF (4.5) ACRES OF THE CITY -OWNED PROPERTY LOCATED ON A PORTION OF WATSON ISLAND AT 888 MACARTHUR CAUSEWAY, MIAMI, FLORIDA, City ofMiami Page 17 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 COMMENCING ON THE EFFECTIVE DATE OF MAY 9, 2011, FOR USE OF CONSTRUCTION STAGING, STORAGE OF MATERIALS, EXCLUDING FILL CLASSIFIED AS COMMERCIAL OR HAZARDOUS MATERIALS, AND VEHICULAR PARKING IN CONNECTION TO THE PORT TUNNEL PROJECT, ON A MONTH TO MONTH TERM; PROVIDING FORA MONTHLY USE FEE OF TEN THOUSAND AND NO/100 DOLLARS ($10,000), AS ADJUSTED BY FIVE PERCENT (5%) EVERY SUBSEQUENT TWELVE (12) MONTH TERM; PROVIDING FOR LICENSEE'S PAYMENT OF ANY ANNUAL STATE FEES IMPOSED BY THE STATE FOR THE USE OF THE STATE RESTRICTED UPLAND PARCEL, IF APPLICABLE; FURTHER AUTHORIZING THE CITY MANAGER TO MAKE NON -SUBSTANTIVE AMENDMENTS TO SUCH AGREEMENT AS NEEDED, WITH TERMS AND CONDITIONS MORE PARTICULARLY SET FORTH IN THE AGREEMENT, SUBJECT TO CITY ATTORNEY APPROVAL. 11-00610 Summary Form.pdf 11-00610 Legislation.pdf 11-00610 Exhibit 1.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0281 CA.8 RESOLUTION 11-00615 District3- A RESOLUTION OF THE MIAMI CITY COMMISSION NAMING THE FACILITY Commissioner Frank AND TENNIS COURTS AT HENDERSON PARKAS THE "GARDNAR MULLOY Carollo FACILITY AND TENNIS COURTS" IN HONOR OF GARDNAR MULLOY FOR HIS DEDICATION AND ACHIEVEMENTS IN THE GAME OF TENNIS; DIRECTING THE CITY MANAGER TO TAKE ALL ADMINISTRATIVE ACTIONS NECESSARY TO EFFECTUATE THE NAMING OF SAID FACILITY. 11-00615 Cross & Crescent - Gardner Mulloy.pdf 11-00615 Legislation.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0282 Adopted the Consent Agenda Motion by Commissioner Sarnoff, seconded by Commissioner Suarez, including all the preceding items marked as having been adopted on the Consent Agenda. The motion carried by the following vote: Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II END OF CONSENT AGENDA Todd Hannon (Assistant City Clerk): Now if you -- Chair Gort: Consent agenda. City ofMiami Page 18 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 9:00 A.M. PH.1 11-00528 Department of Community Development Mr. Hannon: -- would like to take a vote on the CA (Consent Agenda) items. You've already pulled CA.1, so we can now vote on the consent agenda items. Commissioner Sarnoff. I'll make a motion for CA.2 through -- Commissioner Dunn: Second. Commissioner Sarnoff. -- 5. Chair Gort: Okay. There's a motion by Commissioner Sarnoff, second by Commissioner Suarez. All in favor, state it by saying "aye." The Commission (Collectively): Aye. PUBLIC HEARINGS RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NUMBER 3 TO THE AGREEMENT BETWEEN THE CITY OF MIAMI AND CAMARA DE COMERCIO LATINA DE LOS ESTADOS UNIDOS, INC., IN SUBSTANTIALLY THE ATTACHED FORM, EXTENDING THE AGREEMENT END DATE FROM DECEMBER 31, 2010 TO MARCH 30, 2012, FOR ECONOMIC DEVELOPMENT ACTIVITIES ASSOCIATED WITH COMMERCIAL FA?ADE PROJECTS IN DISTRICT 3. 11-00528 Summary Form.pdf 11-00528 Notice to the Public.pdf 11-00528 Pre-Legislations.pdf 11-00528 Detail by Entity .pdf 11-00528 Legislation.pdf 11-00528 Exhibit 1.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Suarez, 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-11-0286 Chair Gort: Okay, can we go to the regular agenda? PH.1. Vice Chair Carollo: Public hearing -- yeah, I was going to move it. George Mensah: Good afternoon. George Mensah, director of Community Development. PH.1 is authorizing the City Manager to extend agreement to CAMACOL (Latin Chamber of Commerce) from December 31, 2010 to March 30, 2012 for Community Development activities associated with commercial facade projects in District 3. Andl want you to know that there is a scrivener's error on the fourth whereas clause and the fifth whereas clause where two districts were interchanged. Vice Chair Carollo: Public hearing. City ofMiami Page 19 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Okay, this is a public hearing; open. Anyone would like to address PH.1. Grady Muhammad: Good morning. Chair Gort: Yes, sir, you're recognized. Mr. Muhammad: Good afternoon, Mr. Chairman, Commissioners. Grady Muhammad. Is this the CAMACOL -- it's a great program. I think -- because like the District 5 and the District 2, microenterprise is five or ten thousand. Established businesses need a little more like the WDNA 89.7, they got 45,000. We need to be able to ensure these loans are expedited out in the community, and more importantly, we definitely need to look at bringing it again in-house to District 5 because when you got established businesses ten, fifteen, twenty years, $5, 000 is an insult. Thank you, Mr. Chairman, Commissioners. Chair Gort: Thank you. Is anyone else would like to address this? Hearing none, close the public hearings [sic]. Do I have a motion? Vice Chair Carollo: So moved. Commissioner Suarez: Second. Chair Gort: It's been moved by Vice Chairman -- Todd Hannon (Assistant City Clerk): Excuse me, Chair. Chair Gort: -- Carollo. Mr. Hannon: Excuse me, Chair. Mr. Mensah, is there a scrivener's error associated with this item? Vice Chair Carollo: Yes, sir. Mr. Mensah: Yes, there is. Mr. Hannon: Okay, I'm sorry. I missed that. Commissioner Suarez: As amended. Mr. Hannon: That does mean that we will be amending the legislation. Mr. Mensah: As amended, yes. Mr. Hannon: Okay. Thank you. Commissioner Suarez: As amended. Mr. Mensah: Thank you. Chair Gort: There's a motion, as amended, and second by Commissioner Suarez. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. Vice Chair Carollo: As amended. City ofMiami Page 20 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 PH.2 11-00529 Department of Community Development Chair Gort: As amended. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE TRANSFER OF COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") FUNDS FROM THE CAPITAL IMPROVEMENTS PROGRAM OFFICE, LITTLE HAVANA COMMUNITY CENTER PROJECT, IN THE AMOUNT OF $100,000, TO THE DEPARTMENT OF PUBLIC FACILITIES, FOR THE PURCHASE AND DEVELOPMENT OF THE SITE LOCATED AT 1320 SOUTHWEST 12TH AVENUE, MIAMI, FLORIDA, IN ACCORDANCE WITH CDBG REGULATIONS; AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. 11-00529 Summary Form.pdf 11-00529 Notice to the Public.pdf 11-00529 Pre-Legislation.pdf 11-00529 Legislation.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0287 Chair Gort: PH.2. George Mensah (Director, Community Development): PH.2 is a resolution authorizing the transfer of CDBG (Community Development Block Grant) funds from the Capital Improvements Program office associated with Little Havana Community Center project, in the amount of $100, 000 to the Department of Public Facilities, for the purchase and development of the site located at 1320 Southwest 12th Avenue, Miami, Florida. Chair Gort: Thankyou. It's a public hearing. Is anyone would like to address this issue? Grady Muhammad: Mr. Chairman, Grady Muhammad again. This is a good program again. And we need to start to making sure any and all of the monies are done. But one of the things that -- ifI wanted to digress -- with the millions that we have outstanding, especially in grants, with the, you know, Parrot Jungle, I think we have to get our money back, and the only way we're going to get our money back if we don't snatch the birds in that Bengal tiger, if we start to (UNINTELLIGIBLE) a failed business model, we should tie our repayment to the Rooftop Garden, as I discussed with the City Manager before. The Rooftop Garden itself is very profitable. Parrot Jungle, as a whole, is a failed business model 'cause it was -- tourists or whatever didn't work out. But we have $25 million of poor people's money at stake and we do not and cannot afford to have HUD (Department of Housing and Urban Development) to cut anymore expenditures of Community Development Block Grant. So in the future, City Manager, Mr. Chairman, Commissioners, to be able to definitely look at trying to get that $25 million that the City is respon -- 80 percent responsible for, to try to get that money and that debt paid down by getting the Rooftop Garden. Outside of that, Mr. Chair, we put a life -- a $50 million life insurance policy on Mr. (UNINTET,T IGIBT ,F) like executives do. Thankyou, Mr. Chairman. Chair Gort: So you're in favor of item 2, right? City ofMiami Page 21 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Muhammad: Oh, yes, sir, Mr. Chairman. Chair Gort: Okay. Thank you. Any further -- anyone from the public? Close the public hearings [sic]. Do I have a motion? Vice Chair Carollo: So moved -- Commissioner Suarez: Second. Chair Gort: It's been moved by -- Vice Chair Carollo: -- for discussion. I'll be quick. Chair Gort: -- Vice Chairman Carollo and second by Commissioner Suarez. You're recognized. Commissioner Suarez: On the condition that he's quick. No, I'm just kidding. Vice Chair Carollo: It will be quick. Thank you, Mr. Chairman. I just want to explain real quick. This is monies from CDBG economic development that we were -- I -- we had -- I had requested earlier when I first got elected and this Commission allowed this. This is -- this money is now going -- well, a portion of it, $100, 000 -- Mr. Mensah: Yes, yes. Vice Chair Carollo: -- is going to now be diverted. IfI get your votes to the Department of Public Facilities to buy a property right next door -- Mr. Mensah: Right next door. Vice Chair Carollo: And that will be coming up in RE.1, I believe. And the truth of the matter is, this property that we're going to buy in 2006 sold for $535, 000. Mr. Mensah: Yep. Vice Chair Carollo: We are going to obtain this property for $32, 000. Mr. Mensah: Yes. Vice Chair Carollo: And we need the $100, 000 to obtain this property, demolish it and so forth, and make it into somewhat of a park or parking area or both and have it in combination with this community center. So once again, it's, you know, a very good thing. So thank you. Chair Gort: Any further discussion? Being none, all in favor, state it by saying aye." The Commission (Collectively): Aye. Chair Gort: PH.3. Vice Chair Carollo: And as Madeline Valdes is coming up, I want to -- I do want to point out that thank her and her team because the truth of the matter is that, you know, this is something we've been working on for, I don't know, maybe over a year or so forth. And to be able to obtain that property for $32, 000 that was in foreclosure, something that sold a few years ago in the height of the market, but still, at 535 is just outrageous, so thank you, Madeline. Madeline Valdes (Director, Public Facilities): Thank you, Commissioner. City ofMiami Page 22 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 PH.3 RESOLUTION 11-00500 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT OF EASEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, TO MIAMI-DADE COUNTY WATER AND SEWER DEPARTMENT, A POLITICAL SUBDIVISION OF THE STATE OF FLORIDA, OF AN APPROXIMATELY SIXTEEN THOUSAND TWO HUNDRED SIXTY (16,260) FOOT WIDE PERPETUAL NON-EXCLUSIVE EASEMENT ON CITY OF MIAMI OWNED PROPERTY LOCATED AT APPROXIMATELY 1501 NORTHWEST 3RD STREET, MIAMI, FLORIDA (KNOWN AS MARLINS STADIUM), AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A", ATTACHED AND INCORPORATED, FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF WATER FACILITIES, WITH THE RIGHT TO RECONSTRUCT, IMPROVE, CHANGE AND REMOVE ALL OR ANY OF THE FACILITIES WITHIN THE EASEMENT. 11-00500 Summary Form.pdf 11-00500 Notice to the Public.pdf 11-00500 Legislation.pdf 11-00500 Exhibit 1.pdf PH.4 Motion by Vice Chairman Carollo, seconded by Commissioner Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Carollo and Suarez Absent: 1 - Commissioner(s) Dunn II R-11-0288 Madeline Valdes: Madeline Valdes, Department of Public Facility [sic]. PH.3 is a resolution authorizing the Manager to sign a grant of easement to Miami -Dade Water and Sewer for the Marlins stadium site. This easement is approximately 16,260 square feet. And this is in conjunction with the construction of the stadium. Chair Gort: Okay. A public hearing. Is anyone would like to address this issue? Is anyone in the public would like to address this one? Being none, we close the public hearings [sic]. Do I have a motion? Vice Chair Carollo: So moved. Chair Gort: It's been moved by Vice Chairman Carollo -- Commissioner Suarez: Second. Chair Gort: -- second by Commissioner Suarez. Any further discussion in being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. Vice Chair Carollo: Madeline, thank you. Ms. Valdes: Thank you. RESOLUTION City ofMiami Page 23 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00568 District 2- Commissioner Marc David Sarnoff PH.5 11-00530 Office of Grants Administration A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE RESTRICTION OF VEHICULAR AND PEDESTRIAN ACCESS TO THE ALLEY LOCATED IN THE AREA BOUNDED BY NORTH MIAMI AVENUE, NORTHWEST 34TH TERRACE, NORTHWEST 35TH STREET, APPROXIMATELY 275 FEET WEST OF NORTH MIAMI AVENUE, MIAMI FLORIDA, AS DESCRIBED IN "EXHIBIT A", ATTACHED AND INCORPORATED, SUBJECT TO CERTAIN CONDITIONS AS MORE PARTICULARLY SET FORTH HEREIN. 11-00568 Notice to the Public.pdf 11-00568 Legislation.pdf 11-00568 Exhibit 1.pdf Motion by Commissioner Sarnoff, 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-11-0289 Chair Gort: PH.4. Commissioner Sarnoff.. Well, I'll put it on. A resolution of the City ofMiami Commission, with attachments, authorizing the restriction of vehicular and pedestrian access to the alleyway located in the area bounded by North Miami Avenue, Northwest 34th Terrace, Northwest 35th Street, approximately 275 feet west of North Miami Avenue, Miami, Florida, as described in Exhibit A. This is an alleyway which runs east -west. It's right by Midtown. This needs to be closed for safety reasons. Mr. Chair, I would move this item. Vice Chair Carollo: Second. Chair Gort: Okay. It's a public hearing. Is anyone -- there's been a motion by Commissioner Sarnoff, second by Vice Chairman Carollo. Is anyone in the public would like to address this issue? Is anyone in the public? None shown. Close the public hearings [sic]. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. Chair Gort: PH.5? Vice Chair Carollo: Deferred, I think. Commissioner Sarnoff.. Deferred. Chair Gort: Right. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING AND CONFIRMING THE CITY MANAGERS RECOMMENDATIONS AND FINDINGS THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS PURSUANT TO SECTION 18-85 City ofMiami Page 24 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 (A) OF THE CODE OF THE CITY OF MIAMI, FLORIDAAS AMENDED; WAIVING THE REQUIREMENTS FOR SAID PROCEDURES; APPROVING THE RECOMMENDATIONS AND FINDINGS OF THE CITY OF MIAMI'S DEPARTMENT OF GRANTS ADMINISTRATION, EDUCATION INITIATIVES THAT ARTS FOR LEARNING/MIAMI, INC., AND STRONG WOMEN, STRONG GIRLS, INC., FLORIDA NOT -FOR PROFIT CORPORATIONS, AND MAD SCIENCE SOUTH FLORIDA, INC., AND ON TARGET MATHEMATICS EDUCATIONAL PRODUCTS AND SERVICES, INC., FLORIDA FOR -PROFIT CORPORATIONS, ARE THE MOST QUALIFIED FIRMS TO PROVIDE INSTRUCTION, FAMILY ACTIVITIES, MENTORING, COMMUNITY WORKSHOPS AND OTHER SUCH ACTIVITIES IN CONJUNCTION WITH EDUCATIONAL SERVICES AT HOLMES ELEMENTARY SCHOOL FOR THE MIAMI LEARNING ZONE OUT OF SCHOOL PROGRAM; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND TO EXECUTE, AFTER CONSULTATION WITH THE CITY ATTORNEY, SERVICE AUTHORIZATION LETTERS, PROFESSIONAL SERVICES AGREEMENTS, AND AMENDMENTS, EXTENSIONS AND MODIFICATIONS IN COMPLIANCE WITH THE RELATED FORM OF THE CHILDREN'S TRUST CONTRACT, RESPECTIVELY, WITH: ARTS FOR LEARNING/MIAMI, INC., IN AN AMOUNT NOT TO EXCEED $14,000, MAD SCIENCE SOUTH FLORIDA, INC., IN AN AMOUNT NOT TO EXCEED $27,000, AND ON TARGET MATHEMATICS EDUCATIONAL PRODUCTS AND SERVICES, INC. IN AN AMOUNT NOT TO EXCEED $14,200, AND STRONG WOMEN, STRONG GIRLS, INC. (WHICH IS DONATING SERVICES), EACH FORA PERIOD COMMENCING AUGUST 1, 2011 THROUGH JULY 31, 2012, WITH THE OPTIONS TO RENEW FOR UP TO TWO (2) ADDITIONAL SIMILAR PERIODS AT THE SAME NOT TO EXCEED AMOUNTS, UNDER THE SAME TERMS AND CONDITIONS. 11-00530 Summary Form.pdf 11-00530 Memo - Target Mathematics Edu.pdf 11-00530 Memo -Arts for Learning -Miami, Inc.pdf 11-00530 Memo - Mad Science South Florida, Inc.pdf 11-00530 Memo - Strong Women, Strong Girls, Inc.pdf 11-00530 Legislation.pdf 11-00530 Exhibit 1.pdf 11-00530 Notice to the Public 07-28-11.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, 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 PH. 5 was deferred to the Commission Meeting scheduled for July 28, 2011. END OF PUBLIC HEARINGS ORDINANCE - SECOND READING SR.1 ORDINANCE Second Reading 11-00434 Department of AN ORDINANCE OF THE MIAMI COMMISSION AMENDING CHAPTER Purchasing 18/ARTICLE III OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "FINANCE/ CITY OF MIAMI PROCUREMENT City ofMiami Page 25 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 ORDINANCE", MORE PARTICULARLY BY AMENDING SECTION 18-85(A), TO INCREASE THE LOCAL PREFERENCE FOR SEALED BIDS FROM 10% TO 15% AND TO DEFINE A SECONDARY BEST AND FINAL OFFER PROCEDURE FOR ALL BIDDERS WITHIN THIS 15% LOCAL PREFERENCE THRESHOLD; AMENDING SECTION 18-86(C)(1), TO PROVIDE THAT, FOR CERTAIN PERSONAL AND PROFESSIONAL SERVICES, A REQUEST FOR PROPOSALS, REQUEST FOR LETTERS OF INTEREST ORA REQUEST FOR QUALIFICATIONS MAY SPECIFY A 5% LOCAL PREFERENCE AS AN EVALUATION CRITERION; AND AMENDING SECTION 18-89(B), TO INCREASE THE LOCAL PREFERENCE IN CERTAIN PUBLIC WORKS CONTRACTS FROM 10% to 15% AND TO DEFINE A SECONDARY BEST AND FINAL OFFER PROCEDURE FOR ALL BIDDERS WITHIN THE 15% LOCAL PREFERENCE THRESHOLD; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. 11-00434 Summary Form SR.pdf 11-00434 Legislation (Verison 2) 07-14-11.pdf Motion by Commissioner Suarez, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II 13275 Commissioner Sarnoff. SR.1. Chair Gort: Okay. Wait a minute. FR.1. First Reading 1. Vice Chair Carollo: Second Reading 1. Kenneth Robertson (Director, Purchasing): SR.1? Vice Chair Carollo: SR.1. Chair Gort: SR.1. Mr. Robertson: Good afternoon. Kenneth Robertson, Purchasing Department. SR.1 is an ordinance of the Miami Commission amending Chapter 18, Article 3 of the code of the City of Miami; more particularly by amending Section 18-85A to increase the local preference for sealed bids from 10 to 15 percent and to define a secondary best and final offer procedure for all bidders within this 15 percent local preference threshold; amending Section 18-86C(1) to provide that for certain personal and professional services, a request for proposals, requests for letters of interest, or a request for qualifications may specift, a 5 percent local preference as an evaluation criteria; and amending Section 18-89B to increase the local preference in certain Public Works contracts from 10 to 15 percent, and to define a secondary best and final offer procedure for all bidders within this 15 percent local preference threshold. Chair Gort: Thank you. Second reading. Commissioner Suarez: Move it. Chair Gort: Open to the public. Is anyone in the public would like to address this second reading? Being shown none, there's a motion by Commissioner -- Commissioner Dunn: Second. City ofMiami Page 26 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: -- Suarez, second by -- Vice Chair Carollo: Second. Chair Gort: -- Commissioner Sarnoff. Any further discussion? It's a ordinance. Maria J. Chiaro (Deputy City Attorney): It is an ordinance as read by your Purchasing Director. It contains a repealer provision and a severability clause. Todd Hannon (Assistant City Clerk): Your roll call on SR.1. A roll call was taken, the result of which is stated above. Mr. Hannon: The item passes on second reading, 5-0. Chair Gort: Okay. Vice Chair Carollo: Very good. This is an ordinance that we all participated in and so forth, and we all came to some consensus and agreement, so it's another one of those -- Commissioner Sarnoff. I had to save you from yourself. Vice Chair Carollo: Yeah. Yep. END OF ORDINANCE - SECOND READING ORDINANCES - FIRST READING FR.1 ORDINANCE First Reading 11-00531 Department of Public AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER Works 54/ARTICLE I/SECTION 54-3 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "STREETS AND SIDEWALKS/IN GENERAL/PERMIT REQUIRED FOR WORK THAT OBSTRUCTS OR CLOSES A STREET, OR SIDEWALK OR IMPEDES TRAFFIC; FEES; WAIVER OF FEES", BY MODIFYING THE DURATION OF TIME SUBJECT TO A NON-REFUNDABLE FEE FOR A PERMIT TO PARTIALLY OR FULLY OBSTRUCTA STREET OR SIDEWALK BY CONSTRUCTION RELATED ACTIVITIES; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. 11-00531 Summary Form FR-SR.pdf 11-00531 Legislation FR-SR.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Dunn II, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Dunn II Absent: 1 - Commissioner(s) Carollo Chair Gort: FR.1. Nzeribe Ihekwaba (Director): Good afternoon. Zerry Ihekwaba, Public Works. FR.1 is an ordinance to amend Section 54-3 for -- entitled `Payment Required for Work" that obstructs or City ofMiami Page 27 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 closes a street or a sidewalk or impedes traffic; fees -- waiver of fees by modifying the duration of time that one can partially or fully obstructs a sidewalk or a street by construction -related activities. Currently the City code allows a free period of up to 30 days. The intent of this ordinance is to reduce that closure from 30 days to 5 days only without penalty of paying any fees. Chair Gort: Okay. Mr. Ihekwaba: Any questions? Commissioner Sarnoff.. I would -- Chair Gort: First reading. Is anyone in the public would like to address this issue? Anyone in the public? Being shown none, close the public hearings [sic]. Commissioner Sarnoff.. I'd like to move this and let this Commission know that this was an ordinance that was worked on with myself and then then -director of Public Works, Stephanie Grindell. This ordinance has generated -- the idea behind this ordinance is that nobody should obstruct the public right-of-way, nobody should be able to close a sidewalk, and should be encouraged to do what they do in New York, Chicago, and other large cities, which is create barriers and let people work above and maintain the sidewalk. In Miami, however, people ordinarily choose not to do that. What they ordinarily choose to do is now pay a fee instead of creating the gateway, if you will, around the sidewalk. This has generated the City ofMiami more than $1.8 million in fees when, before I came in office, it generated the City ofMiami zero. And they did it as a matter of right. Chair Gort: Good work. Vice Chair Carollo: Second. Chair Gort: It's moved by Commissioner Sarnoff, seconded by Commissioner Dunn. It's a ordinance. Maria J. Chiaro (Deputy City Attorney): It is an ordinance as read by your director of Public Works. Containing a severability clause and providing for an effective date. Todd Hannon (Assistant City Clerk): Your roll call on FR.1. A roll call was taken, the result of which is stated above. Mr. Hannon: The item passes on first reading, 4-0. FR.2 ORDINANCE First Reading 11-00532 Department of Public AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER Works 55/SECTION 55-10 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), ENTITLED "SUBDIVISION REGULATIONS/BUILDING PERMITS; ISSUANCE; RESTRICTIONS; EXCEPTIONS", TO INCLUDE AN EXCEPTION TO ALLOW A PERMIT TO BE ISSUED FOR THE CONSTRUCTION, RENOVATION OR REPAIR OF NON -HABITABLE ON -SITE IMPROVEMENTS ON UNPLATTED LAND WHEN SAID IMPROVEMENTS ARE MANDATED BY THE CHARTER OF THE CITY OF MIAMI, CITY CODE OR CITY COMMISSION; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. City ofMiami Page 28 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00532 Summary Form FR-SR.pdf 11-00532 Legislation FR-SR.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Dunn II, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II Chair Gort: FR.2. Nzeribe Ihekwaba (Director, Public Works): FR.2 is an ordinance to amend the Miami City code, Chapter 55-10, entitled "Subdivision Regulations and Building Permits; Issuance; Restrictions, and Exceptions" in order to create a new exception that will allow a permits to be issued for construction, renovation or repair of nonhabitable onsite improvements on unplatted pieces of land where said improvements are mandated by the City charter, City code or City Commission. What this ordinance does is that it's going to allow property owners that have not completed the process of platting their properties to construct fences, security or perimeter fences on vacant land in order to secure the land against vagrants or homeless people. Also would allow them to construct waterfront improvements or seawall that will also minimize any failure of the piece of property. And more importantly, for developers that are still in the platting process, where the City Commission has mandated construction of river work, such as the ten locations in the Miami Greenway area to be able to proceed and do the onsite improvements. Public Works consider this a very critical piece of legislation that is necessary to enhance infrastructure improvement in the City. Chair Gort: Thank you. It's a public hearings [sic]. Anyone would like to comment on this one? Ashley Chase: Hi. Good afternoon, Commissioners. Ashley Chase, assistant director of the Miami River Commission, with offices at 1407 Northwest 7th Street. Very briefly, the Miami River Commission recommends approval of this item as it will help implement your adopted Miami River Greenway Action plan. Thank you. Chair Gort: Thank you. Anyone else? Anyone else? Close the public hearings [sic]. Do I have a motion? Commissioner Sarnoff. So moved. Commissioner Dunn: Second. Chair Gort: It's been moved by Commissioner Sarnoff, second by Commissioner Dunn. Any further discussion? Being none, it's an ordinance. Maria J. Chiaro (Deputy City Attorney): An ordinance as read by your director of Public Works, providing for a severability clause and an effective date. Todd Hannon (Assistant City Clerk): Your roll call on FR.2. A roll call was taken, the result of which is stated above. Mr. Hannon: The ordinance passes on first reading, 5-0. FR.3 ORDINANCE First Reading 11-00567 City Manager's Office AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 39/ARTICLE II OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS City ofMiami Page 29 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 AMENDED, ENTITLED "PEDDLERS AND ITINERANT VENDORS/SIDEWALK AND STREET VENDORS", TO ELIMINATE SIDEWALK AND STREET VENDING WITHIN THE MIAMI ARENA; PROHIBITING VENDING IN THE BISCAYNE BOULEVARD SPECIAL VENDING DISTRICTS AND TO ABOLISH THE LOTTERY SYSTEM AS A MEANS OF ASSIGNING VENDORS TO SPECIFIC VENDING ZONES; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING AN EFFECTIVE DATE. 11-00567 Summary Form.pdf 11-00567 Letter - Miami DDA.pdf 11-00567 Letter - Downtown Miami Partnership, Inc.pdf 11-00567 Legislation.pdf Motion by Commissioner Sarnoff, seconded by Vice Chairman Carollo, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Carollo and Dunn II Absent: 1 - Commissioner(s) Suarez Note for the record: Item FR.3 was deferred to the Commission Meeting scheduled for October 13, 2011. Commissioner Sarnoff. Mr. Chair. Chair Gort: FR.3. Commissioner Sarnoff. With regard to FR.3, I'm going to ask the indulgence of the Commissioners and ask that this be deferred possibly to September. I don't think this is very understood. I think the media is not quite understanding what it's all about. Andl think if we had some sort of an education drive out there, I think everybody would agree it's a necessary ordinance, butt don't want to force this on anyone. And want people to understand the ordinance. It's -- this is not to take away anyone's jobs. This is merely a safety issue. If you were at any of the Heat games and you saw the arepa stand that fell down and people who were injured, this is about having a right-of-way and having the necessary spacing for right-of-ways [sic]. Vice Chair Carollo: Make the motion. Commissioner Sarnoff. So I'm going to make -- Vice Chair Carollo: Second. Commissioner Sarnoff. -- a motion to defer it. Chair Gort: It's been -- Vice Chair Carollo: Second. Chair Gort: -- moved to defer, second. Any further discussion? Vice Chair Carollo: To -- I'm sorry. Todd Hannon (Assistant City Clerk): Excuse me. Vice Chair Carollo: -- to what date, September -- Commissioner Sarnoff. Let's put it to the second meeting in Sep -- well, that's just for budget. City ofMiami Page 30 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Let's bring it to the October meeting. Vice Chair Carollo: October -- Mr. Hannon: October 13, sir? Commissioner Sarnoff.. Yes, sir. Vice Chair Carollo: Yes. Mr. Hannon: Okay. Thank you, Commissioner. Vice Chair Carollo: The seconder agrees. Chair Gort: Okay. All in favor, state it by saying aye." The Commission (Collectively): Aye. FR.4 ORDINANCE First Reading 11-00622 City Commission AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 2/ARTICLE III/DIVISION 2 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "ADMINISTRATION/OFFICERS/CITY MANAGER", MORE PARTICULARLY BY CREATING A NEW SECTION ESTABLISHING CONDITIONS UNDER WHICH SEVERANCE PAY OR LEAVE MAY BE GRANTED TO UNCLASSIFIED SERVICE PERSONNEL APPOINTED BY THE CITY MANAGER TO POSITIONS HOLDING EXECUTIVE STATUS; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. 11-00622 Legislation.pdf Motion by Commissioner Sarnoff, seconded by Vice Chairman Carollo, that this matter be PASSED ON FIRST READING WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II Chair Gort: FR.4. Vice Chair Carollo: Severance package. Julie O. Bru (City Attorney): Mr. Chair, members of the Commission, FR.4 was the directive that you gave to the City Attorney to come back and codifi, what was formally an APM (Administrative Policy Manual) of the City Manager with respect to severance. You have some -- you have an ordinance in your agenda that followed closely what the prior APM was, but upon further review of the recent law that went into effect on July 1, I am recommending that we make some modifications to what was in the printed agenda. I can explain to you what the new state law provides and how it is that we incorporate it into the code provision that you're suggesting that the Commission consider for adoption. That is under the new amendments to the state law. That's Florida Statute 215.425. There's really only two circumstances wherein a municipality can pay severance. One of them has to do with a situation where there is an agreement, an employment agreement or a contract. And since this policy would really be only to govern the executive staff of the City Manager, and his staff does not -- and none of his executive employees have contracts. They're all at will, so that first circumstances [sic] would not apply to the City Manager's executive staff. We did not incorporate it into the ordinance. City ofMiami Page 31 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. Can you stop right there? Does the City Manager have the authority without Commission approval to enter into an employment contract with someone? Ms. Bru: All his employees are unclassified. They are at will. Commissioner Sarnoff. I'm going to ask -- Ms. Bru: He does not have the authority to enter into an employment contract. The only contracts that he enters into with respect to professional services or the expert consultants that the code provides for, but those are not employees. Commissioner Sarnoff. Well, then let me ask the question. Can he enter into a contract for a consultant to give him advice on budget, and in that contract can there be a provision of three months' severance in the event the Manager decides to let him go? Ms. Bru: The -- that's an independent contractor. And the terms of the agreement would be whatever the consulting agreement is. Commissioner Sarnoff. So he has that ability? Ms. Bru: I'm sorry. Maria knows this as well as I do, so she can take over. Commissioner Sarnoff. And she's so much more fun to kind of berate. So much more fun to berate. It's all professional. Chair Gort: Uh-oh. Commissioner Sarnoff. All right. Does the -- can the Manager enter into an agreement with a person without this Commission's approval wherein that agreement would be for a specified length of time and that agreement would have a severance provision? Maria J. Chiaro (Deputy City Attorney): The -- if that agreement were an expert consultant agreement, there are specific limitations. So no, the severance provisions are not provided for in the expert consultant agreements. That's only allowed by code. Any other employees are at will and they would not provide for a severance. Commissioner Sarnoff. All right. So having said -- Ms. Chiaro: The Manager cannot enter into such agreement. Commissioner Sarnoff. Understanding what you're saying, this Manager or any other Manager in the future does not have the inherent power to employ anyone for a specified period of time; and in that employment, in the event that he breaches that contract, then owe any kind of severance to that person? Ms. Chiaro: No. There is no authority to provide for the severance. Chair Gort: Thank you. Okay. Do I have a motion? Ms. Chiaro: So we need to finish explaining what the statutory provisions are that we would like to add to this ordinance. Chair Gort: Go right ahead. City ofMiami Page 32 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Chiaro: The language in the statute allows for the payment of severance in limited circumstances, if there -- it is due to the settlement of an employment dispute. It's not defined under the statute, so we'd like to add that language to this ordinance. And we would also like to add the language that the agreement that the employee who is leaving enter into is reviewed for form and legality by the City Attorney. So we'd like to add those two elements to the ordinance. Chair Gort: And how about approval by the City Commissioners? Ms. Chiaro: Well, you're -- you are giving the City Manager limited authority under the terms of this ordinance. Chair Gort: Right. Ms. Chiaro: That's what -- the way the ordinance is set out. So it -- if you wish -- if the City Commission wishes to approve each individual agreement, you can add that here. But what you've done with this ordinance is you've asked that -- Chair Gort: Okay. Ms. Chiaro: -- the policy be codified, the previous policy be codified. Chair Gort: No. I understand what you're saying. And the policy, I agree with it. But my understanding is when it comes to payment, it would have to be approved by the City Commission like we've done before when you have any settlement. Any time you all have any settlements, it's got to be approved by us. Ms. Chiaro: Well, this ordinance does not provide for that. This ordinance delegates the authority to the Manager for a limited time -- a limited period under state law. Chair Gort: Okay. Commissioner Sarnoff. Let me -- Can I --? I'm sorry. Chair Gort: Sure, go ahead. Commissioner Sarnoff. Because I just spoke to the City Attorney and she clamed something she said, and I'm going to try and articulate this. The Manager could enter into a professional service agreement with a person up to $125, 000. I believe that that agreement -- I will refrain from using the word employment. I will refrain from using the word severance. -- could have a provision -- correct me if I'm wrong -- in the event the Manager wishes to terminate the agreement that would prospectively pay that person for the full 125, 000. Johnny Martinez (City Attorney): Would that be an expert consultant agreement? Commissioner Sarnoff. Yes. Mr. Martinez: I've never seen any severance clauses in any expert -- Commissioner Sarnoff. I'm not using the word severance. I think lawyers are -- I think lawyers can read our statutes andl think that they can carefully draft around that. Mr. Martinez: Okay. Commissioner Sarnoff. I think what this Commission does not want to find itself -- look, this exercise is all about thinking we got everything locked down, the controls are all in automatic, City ofMiami Page 33 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 and the next thing we hear about is severance from somebody that we have no idea. I'm not even getting into the merits or lack of merits into it. But that budgetary bomb shell falls where? Squarely on top of our heads. I'm not getting into whether you should have done it, whether you shouldn't have done it. Andl'm the guy up here that says in certain circumstances, you do pay somebody something for full and complete release. I really do believe in that. Mr. Martinez: I mean, the ones I've been around usually have a clause that you can terminate them for convenience with work done to date and that's it. Nothing -- Commissioner Sarnoff. Okay. Mr. Martinez: -- extra after it. Commissioner Sarnoff. Then may -- see, I'm not trying to tie your hands, but on the other hand, I think this Commission feels -- I don't want to use the word put upon, but I don't know another word to put it -- a way to say it. I think -- and I think if Commissioner Carollo -- or the Vice Chair were here, he would be expressing it maybe a little differently than I am. But I think this is something you might want to hear because we're trying to do the severance ordinance, if you will. And think the ire of this Commission -- you're speaking as Commissioner, butt think speak -- I think know my colleagues. The ire of this Commission is -- look, we sit through the Vice Chair -- I mean this respectfully, not disrespectfully -- sometimes counting pencils because he wishes to do so and prove his point. And then you get hit with a $200, 000 bomb shell and it blows away his pencils real quick. I mean, it becomes a budgetary problem -- Vice Chair Carollo: That's why I said discussion item. Commissioner Sarnoff. Right. It becomes a budgetary problem that is inflicted upon this Commission, and we simply really thought -- I know I did -- that this couldn't go on in the City of Miami, and now we're actually prescribing this action from going on in the City ofMiami. And I'm the guy that likes to give Managers discretion because if you're not the right guy for the job, you shouldn't be sitting there. And so on the other hand, it's been proven to us that people who we have approved have done some things that we would like to have seen. I'm not going to tell you that you couldn't say to me at some point, Commissioner, I absolutely recommend this person get $100, 000 because he's also giving us a release in doing this and this, but it's a public hearing, and we could at least hear publicly why you think you need to do X, Y and Z. And then the citizens can come up here and say, are you kidding me? Are you sure? And it may be explained plausible or implausible. Andl think all anybody wants is if you -- if you're going to be granting severance, if you're going to be giving out any kind of budgetary issue from the City ofMiami, that we be involved in that process, that we be a part of that process, not because we want to get our hands dirty 'cause, you know, maybe we don't even like the issue, but at least there's a public hearing. Andl'm not the guy that uses the word the most, but at least there is transparency in the process so that people can say how can you give this guy this money? How would you give that lady this amount of money? Why are you doing this? Chair Gort: Right. Commissioner Sarnoff. And -- Chair Gort: That's why I want Commission approval. Commissioner Sarnoff. Sorry? Chair Gort: That's why I want to add Commission approval to it. Commissioner Sarnoff. Okay. City ofMiami Page 34 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: By the way, does this ordinance -- is this ordinance much different than that APM that think we will see that was violated? Commissioner Sarnoff. It patterns itself off of Florida Statute -- Chair Gort: Yes. Commissioner Sarnoff. -- 213. Vice Chair Carollo: Right, right, right, now with the new Florida Statute. But besides that, we're making the change because of the new state statute, realistically, realistically. Andl guess what I'm getting at with this ordinance, is it really going to prevent what occurred? What -- it appears what we're doing is codifying what the APM was. Mr. Martinez: I believe it does. Vice Chair Carollo: Why is that? Mr. Martinez: Because it outlines exactly what the -- Chair Gort: What procedure. Mr. Martinez: -- allowable severance packages should be based on time. It takes away the discretion of the City Manager to go above this where I can certainly go below, and it's very clear on how to follow it. So I don't think there's any wiggle room to do what -- to create what happened before. Commissioner Suarez: Mr. Chairman. Chair Gort: And what we're adding to it -- what I suggest that we add is Commissioner confirm. Yes, Commissioner Suarez. Commissioner Suarez: Quick -- no. 'Cause it says here on -- unless I have the wrong one -- on E, 'fhe City Manager's prohibited from granting severance that exceeds severance as set forth herein or that which is set forth in any other applicable law which captures the Florida statute. So he cannot depart from this law. This is a law -- this would be a law. He would not be able to depart from the law. Whereas before it was a memorandum, a memo, and that he could depart from it because he's the one that wrote the memo. This is legislation. So he is prohibited from deviating from this, whereas clearly before he was not. Mr. Martinez: And there's even another item that makes the Manager justify any deviation from the existing APM by sayingl made these changes for these reasons, so it's pretty tight. Between the ordinance that you have here and the reso that's appearing later in the package, it's pretty tight. Vice Chair Carollo: I see it a little bit different, and I'm not necessarily sure, even though, believe me, I would love to say yes, this is going to solve the issue. I'm not necessarily sure that this ordinance will solve the issue. And again, you know, that's a discussion item we'll have, you know, later on. I'll say the reasons why and so forth. I'll --from physical evidence what has been, you know, given to me and so forth. I will show, listen, this is what I'm seeing. This is what went wrong and so forth. And really see if this ordinance -- by the way, this by no means means that this is not a good ordinance and that we should actually not do this 'cause I think we do. As a matter of fact, this is first reading. On second reading, I'm even trying to make it stronger. But anyways, the bottom line is, I'll leave that for the discussion later on, you know. City ofMiami Page 35 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 But again, I'm -- Commissioner Suarez: Mr. Chairman. Vice Chair Carollo: -- we'll discuss it like we always do. Commissioner Dunn: Mr. Chair. Chair Gort: Yes. Commissioner Dunn: I was -- and you kind of reined it in a little bit andl understand. Because one thing for sure, it brings us closer to more transparency, more full disclosure, and at least we wouldn't be -- I'll use the word -- sucker punched by these kind of things that have transpired in the past. And it -- as -- and ifI could use the Manager's term, it cuts down the wiggle room that might have been ambiguous and vague in the initial -- because it was just an ARM, so now with it being an ordinance, we'll get closer -- we can get closer. Commissioner Suarez: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Suarez: Is -- maybe this might be your concern, andl think Commissioner Sarnoff alluded to it maybe, which was that it can be called something differently than a severance and in that respect, potentially, it could happen again. In other words, if it's named differently or if it's categorized in a different way, you know -- 'cause maybe they won't use the word severance but they can use something else. Vice Chair Carollo: My thing is this. If we really start -- ifI really start getting into detail, then we might as well just do the discussion item on the 200,000 and so forth, which, by the way, I want to discuss that and something that I keep hearing. That's just like all the other severance pays that we did, and it's not. And those were improper too. At least l feel they were improper too, andl will show this is why I feel they were improper too. Commissioner Sarnoff. Let's discuss that now because here's why. If you're going to draft an ordinance, let's get into the factual basis under which we found see whether the ordinance covers it. Vice Chair Carollo: You're going to need to give me a few minutes in order to actually get my notes. And at the same time -- Commissioner Sarnoff. Let's -- Vice Chair Carollo: -- I -- Commissioner Sarnoff. -- then we'll table it. Vice Chair Carollo: Yeah, let's table it. But definitely -- Commissioner Suarez: Or we could table it for, you know, whenever you want to do the discussion. Vice Chair Carollo: Right. And we'll discuss it with this one. But the truth of the matter is -- and let me tell you something. You know, I actually, once again -- you know, I want to thank you all because, you know, listen, everything that I bring up here as a discussion item, I do it in good faith. Everything that I bring up, you know, I do this in good faith. And you know, one thing City ofMiami Page 36 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 thatl wanted to say before I started this discussion item and any of them, if anyone feels that any of these discussion items that I'm bringing up is not reasonable, is not something that we all want to know about, then I want that person to come up and speak so we could debate it because everything that I have done is, you know, being done in good faith because I really do believe there are issues that need to be discussed and we need to solve so we don't have this so-called, you know, bad image of the City ofMiami. And one -- then let me tell you something. I, for one -- andl believe the majority, if not every member of this Commission -- did not know about it. This is nothing thatl had a say in. I was dragged into this because the truth of the matter is that, you know, all of a sudden, it blows up in the media, and realistically, we had no say in the matter. So whoever thinks that I'm not going to discuss this and we shouldn't discuss this is dead wrong because the truth of the matter is, I got dragged into this because I am one of the leaders of this City. And whoever thinks that I'm not going to discuss this, that we're not going to really see, you know, with good faith, with good faith what occurred and how can we fix it, you know, it's dead wrong; andl would, you know, invite any person like that to come before us so we could debate it, so we could discuss it and see if we really need to debate all the issues that I put on the table for this meeting. Chair Gort: We agree. Okay, we'll table this one for now. [Later...] Commissioner Sarnoff. And with that said, I'm going to make a suggestion to you for RE -- for FR. 4, and listen to it carefully, Commissioner Suarez, 'cause -- I'm on Section A and I'm changing -- it should be in blue. I think we all had it in blue. Commissioner Suarez: Yeah. What's the section? Commissioner Sarnoff. We're on 2-89, Subsection A, and I'm not going to read the first line because it stays the same. And we move on to the second line where it says the City Attorney grants severance considerations if the severance, settlement or administrative leave, including any other payment which purpose is to receive compensation for work not yet performed, represents the settlement of an employee dispute, and goes on like that. Now I -- you may need to massage this, Madam City Attorney, with a little better grammar, but I think Commissioner Suarez found two circumstances that, my fear as a lawyer, is going to create a different name for severance, and we'll never settle everything. But I think when you get the catch-all, which is any other payment which purpose is to receive compensation for work not yet performed, and that's the essence of what severance is. You're giving somebody compensation for work that he'll never perform. Ms. Bru: Let me -- Vice Chair Carollo: And it's also on first reading, so -- Commissioner Sarnoff. Yeah, yeah, yeah. Vice Chair Carollo: It's also on first reading -- Chair Gort: First reading. Vice Chair Carollo: -- so we could always come back and -- right. Commissioner Sarnoff. And you may not be satisfied. You might say six weeks is too -- you know -- Vice Chair Carollo: Right, right. So just keep in mind it's first reading. City ofMiami Page 37 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Suarez: Right. Commissioner Sarnoff. So I'll make a motion to approve FR.4 -- Vice Chair Carollo: Andl will second. Commissioner Sarnoff. -- as amended. Chair Gort: It's been moved and second -- Commissioner Suarez: I'll third it. Chair Gort: -- as amended. Commissioner Suarez: Yeah. I think that language tracks the language in the state statute as well. Commissioner Sarnoff. It does. Commissioner Suarez: Yeah. Chair Gort: First reading. Public reading. Anyone would like to address FR.1 ? FR.2, I mean. Commissioner Sarnoff. FR.4. Chair Gort: FR.4. Grace Solares: Good afternoon. Grace Solares, 60 Southwest 30th Road. Yes, the mechanics were in place, Commissioner Carollo, but as you well know, they were violated, and no one is paying for the violation. Vice Chair Carollo: Yet. Ms. Solares: I think -- Vice Chair Carollo: Yet. We don't know that yet. Ms. Solares: Well, no one is paying for the violation. Larry Spring is not, and he took money; Tony Crapp is not, and he took some money on severance. I believe in order to make this -- Vice Chair Carollo: I'm sorry. I don't think Tony Crapp took severance. Ms. Solares: No, but Larry Springs [sic] did. Commissioner Suarez: Yeah. Ms. Solares: I think in order to make this a little bit better, you have to put certain -- how would I say -- Commissioner Sarnoff. Penalties? Ms. Solares: -- reimbursement by the person who actually violates. If it's Diana Gomez, who issues a check without seeing in front of her an order from this Commission, she should pay for whatever she issues. If it's Larry Spring, if it's the Manager, whoever it is, because it's my City ofMiami Page 38 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 money, it's my money, my taxes that are being used for that. So I request that you make this a little bit stronger so that in the event anyone issues a check and they do not have an order from this Commission in front of them authorizing that check, that person is going to have to pay whatever that check is -- for the amount that it is. Thank you, Commissioners. Chair Gort: Thank you. Commissioner Suarez: Mr. Chairman, ifI may? Vice Chair Carollo: And again, that -- it's on first reading. Chair Gort: It's first reading. Vice Chair Carollo: I do think -- as a matter of fact, I asked the City Attorney a few days ago with regards to penalty and how much penalty. What she mentioned was with regards to firing the person and so forth. But there -- and again, there's different issues because one is override of controls and issuing the check when they know they're not supposed to or so forth, and then you have to see whether they know or not or they should know because you should know the policies. And the other thing is when this person already leaves and receives this type of check, so -- and again, by the way, believe me, I have bounced this off numerous CPAs to see their thoughts and so forth. And realistically, I do think it should end up being investigated by some outside agency. Andl really believe it will end up being investigated by some outside agency, if it isn't already. Chair Gort: Okay. Yes, sir. Miguel Gabela: May I? Chair Gort: Yes, sir. Mr. Gabela: Miguel Gabela, 1701 Northwest South River Drive, Miami, Florida 33125. Some of you know me and some of you don't. But as a taxpayer, I feel insulted that this goes on and then -- for example, last year before 2009 you tell us there's no property increases and there's a $395 charge for a tax collection charge that wasn't there before 2009 and back and the letter came saying that you were collecting that tax for -- to make up 23 million to buy equipment for Solid Waste, okay. I don't think that's fair. I got a duplex. That means I got to pay 395 two times, plus my house; that's $1, 200 increase. And then we sit up here and this goes on, check for $200, 000, and it's like nothing, you know. If this would have been a corporation -- I own a corporation -- somebody would have been fired 'cause somebody has to take responsibility. Because the problem is if nobody -- if everybody knows that you can do this sort of thing and nobody takes responsibility, then where are we going to be? You can't set an example because everybody basically doing what they're doing. And you know with all due respect to the Mayor and to you all, Commissioners, you've been here for two years. It should be your job to know what's going on in every department, you know, because that's what we elected you for to do, you know, to watch our money, you know. And I'll make it brief butt feel that these -- this needs to be gotten to the bottom of you know, and give us an explanation, not just going away and have a little, you know, talk over here. Oh, we know what's happened already and it's clear what's happened, you know. But we need the resolution and then I can -- you can have -- you, as a board, can have my trust. Right now you don't have my trust because I feel this is going on and nobody's in charge of the ship, you know. Andl didn't come here to make a -- you know, I care about the neighborhood. Well, Mr. Gort knows me andl know him. You know, I didn't come here for political gain or advantage. But I feel that at some point you have to talk out, you know. Andl think -- you know, somebody here needs to be responsible at the end of the day, like the lady correctly said. You know, because if this keeps going on, we continue to lose faith in our government. That's all. Thank you. City ofMiami Page 39 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Thank you. Anyone else? Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Let me close the public hearings [sic]. Vice Chair Carollo: Thank you. Chair Gort: Yes, sir. Vice Chair Carollo: I just want to state that this is just what I foresee the beginning. I brought it to this Commission so we could discuss it, see where we want to head, see the facts that we have before us. Again, this was all just physical evidence that we had. I did not do any inquiries of anybody, nor -- because I think that would have crossed the line in actually beginning an investigation and so forth. And like I said, I never envisioned me acting as an investigator here. I am a Commissioner. Andl think that should be a third party outside of the City. However, I have a strong feeling this is not going to go away. I have a strong feeling this will be investigated. Commissioner Suarez: Mr. Chairman, ifI may? Chair Gort: Yes, sir. Commissioner Suarez: Please. Thank you. I just want to thank the two members of the community that came to express their feelings on this issue because we've talked today about a lot of things having to do with cost-cutting measures and about how that's going to affect the morale of our employees, and you know, how employees are going to feel who are making, you know, less money about these type of payments, but don't think today we've mentioned the fact that our residents, who are the taxpayers of this community, are the ones that are paying for this. Andl think it's good that you come and express that because the fact of matter is, we work and we are constituted for you. Not to perpetuate ourself not to exist -- only to exist to provide services to the residents of the City ofMiami and do no more. So I appreciate you coming. And I think it's important to get that perspective because sometimes it gets lost in the discussion. Like you said, we're an organization. We have a lot of group think. We're thinking about how to make ends meet, how does it affect this person or that person or whatever. And sometimes we lose sight of the fact that we represent the citizens of the City ofMiami. Actually Commissioner Gort mentioned earlier today the median income when he was talking about the garbage fee, the median income. Andl was looking at our bond rating the other day where it said that we have twice the level of poverty -- the national level of poverty in the City ofMiami. So you know, this is our tax base. It's a 30, you know, billion dollar tax base, but that's our tax base. Commissioner Dunn: Mr. Chair. Oh. Before -- Chair Gort: Yes, ma'am. Commissioner Dunn: Let me echo the sentiments of all the Commissioners, but particularly Commissioner Suarez. And that is basically what I try to do when you see me bring something to this Commission. It is based on what I'm hearing in the community, and one of the things -- and I want to state this for the record -- is that when you have outsiders who don't really know the community, who don't live in the community, trying to claim that they know the community and I'm in it every day. I live there in the community. I've lived there for over 50 -- 45 years in this community, then I understand the pain so that's why I can relate to what's being said. And everything that I've tried to do as is related to whether it was an issue in policing, whether it was an issue with trying to be more efficient, it was dazed on what I'm getting in the community. And when I see that sometimes being misrepresented by anyone in leadership -- because they can get City ofMiami Page 40 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 one or two people out of the community because perhaps they got some kind of deal on the side, I don't know. I don't know. I don't know. But that's when I really get infuriated because I have to respond andl have to answer to the people who elected me in that district. And l just want to state for the record, I -- as you can see, I feel the pain, andl feel the pain but it goes both ways. District 5 is just as important as any -- and this Commission has demonstrated that for the most part -- other district in this -- in the City ofMiami. As a matter of fact, you're talking about the median income. Whenever -- it's like that in the other districts as a whole. We're under 25,000. Overtown -- there was report just given the other day, Anglos, somewhere 8 percent unemployment; Hispanics, 11 percent; and African American in South Florida, 16-plus percent unemployment. So you think that's not tough to deal with, that type of -- and it's the highest in the country right now, the unemployment in South Florida, so -- among blacks. So I feel it. I agree with you. I have -- you are the taxpayers; we respect that. And that's why I said appreciate what you've done and what you've been doing, Vice Chair, in terms of bringing these issues to the forefront. But I am the elected Commissioner for District 5. No director -- nobody else, until they become that Commissioner, will speak for District 5. Until the electorate decides otherwise or the courts or whoever deseed otherwise, I will be the voice -- I will be the representative for District 5, and that's what I want to put on the record because I -- you know, this kind of thing -- and that's what push me. When I had those issues coming every week, every -- you know, every month coming up, it brought me -- and that's why I brought these kind of things that were offensive and disrespectful to my district. That's what that was about. It was nothing personal and it never will be nothing personal. I can move beyond that. But I do want to make one slight correction. I think you said 395. Last year it was 380, so that -- I think that -- that was brought up today. Not -- I'm not in -- not in a debate. I just wanted to say -- Mr. Gabela: All I'm saying is this, okay. Apparently, the way I calculate what happened -- andl have a business background. I'm pretty good with numbers -- is that the millage might have been lowered, okay, but there might have been money left -- like you said, that you know, when there's money left over, you know -- Commissioner Dunn: Give it back to the residents, the people. Mr. Gabela: Well, that's what -- you know, instead of taking that money that was left over, somebody found a way how to implement it to collect a total of $23 million because -- I have the letter at home, okay -- to buy new equipment. And my question is, you know, we're in the middle of a recession here. I don't know if anybody's noticed, you know. Commissioner Dunn: Oh, I know it. We aware. Mr. Gabela: But it could have been better spent, okay, than that. If you're going to -- in my opinion -- and this is my opinion -- as a taxpayer, okay, I do not appreciate the 395 because it's three times for me, andl cannot pass it on to my tenant because everybody is scraped to the hilt, you understand. And then you make it impossible. And you know, if you don't have good use for the money, give it back to the taxpayer, you know. That's all I'm saying. Commissioner Dunn: And I agree -- I respect your -- Mr. Gabela: And you know -- and the check with the $200, 000, look, I wasn't there. Like you guys, I don't know. But all I'm saying is it's my tax money. Whatever I contribute, my half cent and her half cent and so forth -- Commissioner Dunn: understood. Mr. Gabela: -- you know what I mean. This is not right. You know what I mean? This is -- Commissioner Dunn: Understood. City ofMiami Page 41 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Gabela: -- not right that you just brush it off and it happens, oh, wait a minute. We'll put a little slap on your wrist -- Commissioner Dunn: No, no. Mr. Gabela: -- and then it goes away, because it's not correct. That's all I'm saying. And by the way, I didn't speak about -- I know your -- I know your district, but I didn't mean any -- I didn't go into details of any district. What I mean as a whole. Commissioner Dunn: No. I understand. But I wanted to -- I wasn't really -- your part, I was just making a point that my colleague made when he talked about the residents, how we need to respect the residents. And so I saw that as an opportunity to again bring up why I -- I'm elected by the residents of District 5, so things that may be different in all of the other districts -- 'cause we are somewhat different in some social economic terms. Mr. Gabela: But when you own a business -- Commissioner Dunn: Okay. Mr. Gabela: -- this sort of thing up here cannot happen. Commissioner Dunn: I -- we're in agreement. Mr. Gabela: Okay. This sort of thing doesn't happen because somebody will be responsible at the end of the day, and that's my point. Andl leave it -- Commissioner Dunn: We're there. We agree. So I just wanted to say that. I'm not -- I'm just agreeing with what you said, Commissioner Suarez. Andl respect all of the residents of the entire City ofMiami, but as you know, when it's -- politics is local. When it's really close to home and you hear the people scream in your ear -- and what was saying, not particularly to you, sir, but when other folk try to misrepresent that they got all this support in my district and I'm the one getting the phone calls, hundreds of calls, letters every day, that's what angers me. Don't play games in here. Chair Gort: Yes, ma'am. You want to -- Luis Cabrera (Acting Chief of Operations, City Manager's Office): Mr. Chairman, I just want to clam a couple of facts that were asked. We were discussing outside agency involvement. Under the authority of the chief he has the ability to request an investigation if he feels a crime occurred and involve any outside agencies to do so. Discussing the facts, I think one of the issues that were brought up by the Commissioner is that because we don't have all the parties involved, we're unable to determine what occurred and what didn't occur. I wanted to give the opportunity for Diana, who wanted to clam some things to the Commissioners, if you allow that. Chair Gort: Yes, ma'am. Diana Gomez: Diana Gomez, Finance director. The payment in question was requested by the City Manager through the CFO (Chief Financial Officer). The City Manager was not available that day in the City building in order to sign off on the documentation. However, the CFO, when he came to speak with me, was speaking with the City Manager andl was privy to that conversation, so it's very clear that the City Manager knew what was happening and that the check was going to be issued. Additionally, I was told by the CFO that they had already spoken with the City Attorney's office and a representative of HR (Human Resources) and was told that City ofMiami Page 42 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 they did have -- that the City Manager did have the authority, since this was a severance -type settlement, to execute this payment without further Commission action. The idea was that they were going to negotiate that evening and wanted the check issued in order to be able to take the settlement and show good faith to the chief that they were in fact going to negotiate his departure is what I was told. The settlement agreement would have been signed that evening and then executed by the City Manager that evening had the negotiations been successful. This is the information that I have. I was not privy to the negotiations, nor some of the other meetings, but this is the information that was portrayed to me is which -- what gave me the comfort to issue the check on the City Manager's authority. Vice Chair Carollo: Mr. Chairman Chair Gort: Yes. Vice Chair Carollo: Two things, two separate, and the first thing, the City Manager, assistant City Manager or deputy City Manager -- I'm not sure of your title right now. Mr. Cabrera mentioned was with regards to the police chief being allowed to request for an investigation. So I would like -- I see Major Alvarez. If it's okay with my colleagues -- andl don't want to turn this into a circus. I would like to, at the very least, know if there's an investi -- ongoing investigation or not. That's number one. Number two, with what Ms. Gomez is stating, we are now border line in starting this investigation ourselves. So I kind of -- I'm reframing [sic] from asking her additional questions, asking the City Attorney who in the City Attorney's office and all that because, you know, it's one of those -- they're putting the bait andl kind of want to go for it because I truly believe that an outside agency is going to investigate this. And like you said, all the parties are not present and, you know, there's a lot of hearsay back and forth right now, so I really am not going to ask Ms. Gomez any follow-up questions and so forth because I really believe that an outside agency should do the investigation and should really determine what's going on, who they should question, who they should subpoena, should it get to that point and so forth. With that said -- Commissioner Suarez: I have to say something. Chair Gort: Commissioner -- Vice Chair Carollo: -- I want to know how my colleagues feel about asking either Chief Plum (phonetic), Major Alvarez, or anyone from the Police Department that could answer the question with regards to if an investigation is actually occurring or not. Commissioner Suarez: Mr. Chairman, ifI may before we get to that? Chair Gort: Yes. Commissioner Suarez: I think there's two separate things going on here. I think what we're trying -- at lease what I was trying to identifi, was from a control -- financial controls perspective, how does a check get issued without it fitting the construct of what is allowable under the law, under the statutes? How does a check that's supposed to be a settlement check or a severance check -- and you know, you're getting into these -- so what I'm -- I think what I'm getting at is -- and this kind of taking it a couple of steps back when we talked about another issue -- is that we got to do things formally in the City ofMiami, and that goes back to the resolution that we have on the Manager putting in writing any departures from the -- Vice Chair Carollo: Exactly. Commissioner Suarez: -- APM, you know. Things have to be done formally here, okay. They cannot be done on a whim because then what happens is it becomes a he said, he said contest. I City ofMiami Page 43 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 was in the bathroom; I didn't know what was going on, you know. He said this. Oh, that's not what I heard. I heard something else. Things have to be done formally, particularly when you're talking about this kind of money. This is a lot of money, you know. Vice Chair Carollo: I agree with you 100 percent, and that's why I don't want to do the follow-up questions now and so forth because we get into that he said, she said; you know, the City Attorney's office said this. And realistically, that's why when I started speaking about this, realistically, what I presented was all the physical evidence, what we have. We have a request that is written or the name of the City Manager is there or the former City Manager, Tony Crapp. However, it is signed all by the same person. Yes, Commissioner Sarnoff, you're very -- you're exactly correct about segregation of duties. And here, realistically, as far as physical evidence, no, we don't have, you know -- the City Manager actually -- you know, with any physical evidence, you know, as far as written signature. And to be honest with you, even if we did, it's not his purview. It's actually the City Attorney's office. So even if we did -- but like we're saying, we're going to this hearsay now, where I spoke to him and the City Attorney said okay and so forth. And l just -- you know what, I really think that it should be investigated from an outside agency. I think that we should ask, since they're present, if it's being investigated and go from there. Because once again, I'm a Commissioner; I'm not an investigator anymore. Mr. Cabrera: Mr. Vice Chairman, may I ask that we don't proceed in that manner -- Chair Gort: Excuse me. Mr. Cabrera: -- because -- Chair Gort: The only question was asked -- that the Vice Chairman wants to ask is to an investigation taking place. That's all. Alfredo Alvarez (Major, Police): Good afternoon, Commissioners. I cannot answer if there is an investigation or not, but -- Chair Gort: Please, your title. Mr. Alvarez: Oh, Alfredo Alvarez. I'm a major with City ofMiami Police Department, commander of Internal Affairs/Public Corruption Unit. I cannot answer if there is an ongoing investigation or not. I cannot talk about any agency that would or would not be doing an investigation. What I can clearly say is as soon as the chief was contacted about the meetings and the offer, we went to an investigative authority because the chief never had intention of taking the offer. We were working with -- under the protocol of that investigative authority, and we cannot discuss anything else beyond that. Chair Gort: Okay. Mr. Alvarez: But yes, we did reach out to an investigative authority prior to the meetings. They -- we participated in the meetings, following their protocol, and that's all can say at this time. Thank you. Chair Gort: Thank you. Okey-doke. Commissioner Suarez: Mr. Chairman, please. Chair Gort: Yes, sir. Commissioner Suarez: I want to get back to what we were doing, which was trying to create a system so this doesn't happen again -- City ofMiami Page 44 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Right. Commissioner Suarez: -- from the perspective of the finances doing things in a documented fashion, doing things -- not doing things, like Hispanics say, (UNINTET,T IGIBT ,F); you know, not doing things, you know -- I just don't understand that. I mean, if I'm going to rely on something that the City Attorney says, you better believe I'm going to get it in writing. It's not that I don't trust her or it's not that I don't trust anyone in her office or her staff. It's just that I don't want there to be a misinterpretation later. You know, did she say this. Did she say that, you know. There just can't be any room for that. Commissioner Dunn: IfI may, Mr. Chairman? Chair Gort: My understanding -- Commissioner Dunn: Please, please. Chair Gort: Yes. Commissioner Dunn: And that's precisely what we voted on the last item at the last meeting, that whatever -- if there -- Commissioner Suarez: Exactly. Commissioner Dunn: Yes. So that's -- Vice Chair Carollo: The APM. Commissioner Suarez: Exactly. Commissioner Dunn: We're trying now to put mechanisms in place to prevent this kind of thing because -- Commissioner Suarez: But this -- Commissioner Dunn: -- we were basing it on verbal changes. Commissioner Suarez: -- goes to, I think, Mr. Gabela's point, which is we have been here for a little while. I've been here for a year and a half, andl think we've made some significant changes as a body in terms of what we tolerate and what we do not tolerate. Andl could tell you, for example, before we arrived -- and the Mayor talked about it earlier -- we had declining deficits year after year after year from the year 2003 to the present. This year we balanced our budget. Why? Because we were conservative, we took a lot of additional time, everyone got involved, and we spent the time and the energy and effort to do that. We didn't have any margin for error. So we are -- I think we have set a completely different tone from the way things were here before. I think staff would say that they don't come up here thinking that they're just going to present an item and we're going to rubber stamp it. I think that's pretty clear, that -- and it's an ongoing process because it's a cultural change and something that has been -- a practice that has been engaged in for several years, for a decade is not unfortunately changed overnight. And as you said, it's hard to discover something that you don't know what's happening. How do you discover something that you don't know what's happening? You have to make public records requests about things that you don't know are happening. I mean, there's no way to discover it until someone, you know, tells someone who tells someone who tells someone and it gets out to the public. City ofMiami Page 45 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Okay. Commissioner Suarez: And so what we're doing is we are immediately addressing it. No, no, no, I don't want to get into a back and forth because this has taken forever. You know, I just wanted to say that because I wanted to address a very legitimate point that you made about what are we doing as a body that's different than before. Mr. Gabela: Thank you. Chair Gort: Okay. We have a motion. We made the motion or --? Vice Chair Carollo: Yes. Commissioner Sarnoff. I did. Vice Chair Carollo: Andl second it. Chair Gort: Yes. And it was second. Vice Chair Carollo: Yes. Chair Gort: And -- Vice Chair Carollo: Yes, first reading. Chair Gort: -- public hearing's closed. Andl do believe that on the second reading, this should be penalty so that way people would know this -- they have to follow the procedures. If they don't follow the procedure, they're going to have a problem, and that's the only way they'll make sure they'll follow the procedure. Yes, ma'am. Ms. Bru: So we're going to be now adopting this on first reading. Chair Gort: Right. Ms. Bru: And I'll read the title, but before I do, I just want to make sure that recap what I've heard the discussion here to be. We're going to prepare this ordinance pretty much in the way that had suggested it. We're going to incorporate a definition, as expressed by Commissioner Sarnoff, and tracking the state statute, which is basically what he was doing, but -- and we'll just make sure that it's very tight so that it includes any description of a payment that could be considered a severance. You want me also to put in here that any severance payment that is a settlement of an employment dispute -- because that's all we're going to be authorizing now -- has to be approved by the City Commission. Correct? Chair Gort: Correct. Ms. Bru: You want to include that there. So I'm going to be taking out of this ordinance a lot of the Manager's discretion because basically, really, it's not his discretion anymore. It'll be pursuant to this policy; my review for legal sufficiency, your approval. Andl guess the only other thing thatl will do also that is to make sure that the use of administrative leave would be in lieu of the severance, so if there was going to be a recommendation by the Manager of a severance payment, the employee doesn't have to take the lump -sum if the employee wants to be carried on administrative leave. That's the purpose of administrative leave. It means that your Commissioner Sarnoff. Well, administrative leave should be part of this ordinance. City ofMiami Page 46 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Bru: It is. Commissioner Sarnoff. Okay. Ms. Bru: It will be, but it will be in lieu of the lump -sum severance payment so it's not going to be in addition to. Chair Gort: Right. Ms. Bru: That's what I'm hearing, correct? Chair Gort: That's correct. Ms. Bru: Okay. All right. And then I just want to -- before I read the title, I just want to clam because I know the Commissioner was also concerned about the expert consultants and whether or not there could be, by way of a contract with an expert consultant, a payment of extra compensation, severance -- Commissioner Sarnoff. I'd like you to see if you could work that into this because -- Ms. Bru: Right. Well, the truth of the matter is that if we are careful about how we pay expert consultants, they would never be entitled to that because in your ordinance, they can only be paid on a per diem basis. Chair Gort: Right. Ms. Bru: So we have to make sure -- this is just a function of making sure that when consultants are paid they're paid pursuant to the ordinance on a per diem basis, which means they get paid only if they actually produce work -- Chair Gort: Their work. Ms. Bru: -- that day. So whether they bill it on a monthly basis or whatever, there should be a statement of a bill showing a per diem amount attached to a day worth of work. Commissioner Sarnoff. I think what you're saying is that every expert consultant contract entered into by the City ofMiami is uniform and, uniformly so, it is severable at any time by the Manager's will, and there is then no subjectivity or no wiggle room for any theory of future payments. Ms. Bru: Because the ordinance says that it cannot exceed 125,000 in any one year and shall be payable on a per diem basis. Commissioner Sarnoff. But he -- okay. Ms. Bru: I mean, we can -- if you want to, we can -- Commissioner Sarnoff. Here's my issue. And I'm going to give you the example; you tell me whether it fits it. He's not here, so let's talk about him. Johnny Martinez turns around, hires himself his own CPA (Certified Public Accountant); gives him a contract for up to $125, 000. I don't have to come in front of this Commission. And he gets advice from him for 35 days, and he goes wow, is this a bone head. I don't like this guy. And somewhere in that contract there's a provision that says if I'm terminated for any reason, I get the rest of my contractual term. You're saying that could never happen in the City ofMiami? City ofMiami Page 47 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Bru: Well, what will do is I will look at our form expert consultant contract andl will make sure -- and if this is something that concerns the Commission -- and with everything that's happening, you probably should be concerned about everything -- let's bring back an amendment to your procurement code where the expert consultant agreements are addressed that will make sure that it's codified; that there will be no circumstances under which an expert consultant will be paid any money for early termination or for work not rendered -- for services not rendered. Commissioner Sarnoff. I like that. Ms. Bru: We'll do that. Chair Gort: They're not employed, so they're not entitled to. Vice Chair Carollo: And by the way -- Commissioner Sarnoff. Well, no. She -- Chair Gort: It's by contract. Commissioner Sarnoff. But she's saying she's going to amend the procurement code and -- it's like Commissioner Suarez says, just 'cause you don't call it severance doesn't mean it's not going to be called a future payment. Chair Gort: Right. Vice Chair Carollo: And by the way, in your scenario, if that occurs, I guess that CPA really isn't a bone head. Chair Gort: Will you read the ordinance. The Ordinance was read by title into the public record by the City Attorney. Todd Hannon (Assistant City Clerk): Your roll call on FR.4. A roll call was taken, the result of which is stated above. Mr. Hannon: The ordinance passes on first reading, 5-0, as amended. Chair Gort: By the way, Commissioner Suarez, you brought a good point because I think it's important people know that most of us have been here only a year and a half. We have inherit a lot of things that we are changes [sic] and we improving a lot. Thank you. END OF FIRST READING ORDINANCES RESOLUTIONS RE.1 RESOLUTION 11-00533 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE A PURCHASE AND SALE AGREEMENT ("AGREEMENT"), IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI AND CONSUMER City ofMiami Page 48 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 SOLUTIONS REO LLC, A FLORIDA LIMITED LIABILITY COMPANY, FOR THE ACQUISITION OF THE PROPERTY LOCATED AT 1320 SOUTHWEST 12TH AVENUE, MIAMI, FLORIDA ("PROPERTY") AS LEGALLY DESCRIBED IN THE AGREEMENT, IN CONNECTION WITH THE RECONSTRUCTION OF THE LITTLE HAVANA COMMUNITY CENTER, FOR A TOTAL PURCHASE PRICE NOT TO EXCEED THIRTY-TWO THOUSAND DOLLARS ($32,000), AND TO CONSUMMATE THE TRANSACTION IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT; FURTHER AUTHORIZING THE ALLOCATION OF FUNDS, IN A TOTAL AMOUNT NOT TO EXCEED ONE HUNDRED THOUSAND DOLLARS ($100,000), FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT PREVIOUS YEARS CLOSE OUT FUNDS, APPROPRIATED TO COVER THE COSTS ASSOCIATED WITH THE ACQUISITION AND DEVELOPMENT OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO SURVEYS, ENVIRONMENTAL REPORTS, AND TITLE INSURANCE; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ANY NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO ACCOMPLISH THE ACQUISITION OF THE PROPERTY. 11-00533 Summary Form.pdf 11-00533 Legislation.pdf 11-00533 Exhibit 1.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II R-11-0291 Chair Gort: RE.1. Madeline Valdes (Director): Madeline Valdes, Department of Public Facilities. RE.1 is a resolution authorizing the City Manager to execute a purchase and sale agreement with Consumer Solutions, REO, LLC (Limited Liability Company), for the purchase of the property at 1320 Southwest 12th Avenue in connection with the reconstruction of the adjacent community center. This resolution also authorizes that $100, 000 from the Community Development Block Grant be applied towards the acquisition, closing costs and predevelopment of the site. Chair Gort: Okay. Vice Chair Carollo: I make a motion to approve this. Commissioner Dunn: Second. Vice Chair Carollo: This is exactly what -- Chair Gort: It's moved Vice Chairman Carollo, second by Commissioner Sarnoff. Vice Chair Carollo: -- I was talking about, how we're maximizing our resources. We're actually obtaining a piece of property right next to a community center that we're refurbishing. We're going to make it into computer labs, possibly the future home of the NET (Neighborhood Enhancement Team) office that was formerly there and due to a fire had to move and now we're paying lease payments, which I think it's time that we stopped paying those lease payments and we bring them back home. At the same time, this would give space for parking -- Chair Gort: It's a great location. City ofMiami Page 49 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 RE.2 11-00534 Department of Capital Improvements Program Vice Chair Carollo: -- for maybe a playground, maybe both. And the truth of the matter is, we're obtaining this property for $32, 000 when in 2006 it was sold for $535, 000. Thank you. So I make the motion to approve. Chair Gort: It's been moved and second already. Any further discussion? Being none, all in favor, state it -- discussion? Commissioner Sarnoff. No, no. I was going to say I wish he would have bought the Skills Center 'cause -- Chair Gort: All in favor, state it by saying aye." The Commission (Collectively): Aye. Chair Gort: Okay. Ms. Valdes: Thank you. Vice Chair Carollo: And I'm going to go back for a second and speak with the auditors. Thank you. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING AN INCREASE TO THE PROFESSIONAL SERVICES AGREEMENTS WITH HNTB CORPORATION, INC. ("HNTB") AND URS CORPORATION SOUTHERN ("URS"), FOR THE PROVISION OF TRANSPORTATION PROGRAM SUPPORT SERVICES, IN AN AMOUNT NOT TO EXCEED $300,000 FOR EACH FIRM, THEREBY INCREASING THE TOTAL CONTRACT AMOUNT FROM $850,000 TO AN AMOUNT NOT TO EXCEED $1,150,000 FOR HNTB AND FROM $200,000 TO AN AMOUNT NOT TO EXCEED $500,000 FOR URS; ALLOCATING FUNDS FOR SAID INCREASES, FROM THE APPROPRIATE CAPITAL IMPROVEMENT PROJECTS; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NUMBER 1 TO THE AGREEMENTS, IN SUBSTANTIALLY THE ATTACHED FORM, FOR SAID PURPOSE. 11-00534 Summary Form.pdf 11-00534 Pre-Legislation.pdf 11-00534 Legislation.pdf 11-00534 Exhibit 1.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Dunn II Absent: 1 - Commissioner(s) Carollo R-11-0292 Chair Gort: RE.2. Albert Sosa: Albert Sosa, director of Capital Improvements. RE.2 is an item to increase the contract capacity of our existing -- of two of our existing miscellaneous consultants that we use City ofMiami Page 50 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 RE.3 11-00535 Department of Capital Improvements Program to support our staff and our programs as they relate to transportation and traffic programs within the City and there are capital needs associated with them. These contracts are in support of for example, the ongoing trolley program that we have, as well as citywide traffic studies. Development agreements, when they're submitted they need to be evaluated for the traffic impacts and how that relates to the overall City's transportation plan. The requested amount is to increase each of the two existing contracts by $300, 000. In the case of HNTB (Howard, Needles, Tammen & Bergendoffi, the increase would be from 850,000 to 1.15 million. In the case of URS (United Research Services), it would be from 200,000 to 300, 000. Chair Gort: Could you explain the reason why we extending this rather than going to an RFP (Request for Proposals)? Mr. Sosa: Yes. These existing contracts have a term of four years. We're halfway through that term. And these consultants are working on ongoing programs and they're working on ongoing studies. For example, the trolley study that we referred to earlier. And they do have the history and the knowledge associated with the program to date, and they are the most efficient firms to continue working to support those programs that's here at the City. Chair Gort: My understanding also, we requested additional study because we wanted to extend the program. Original, it was going to be the Health District only and now we expanded it to the stadium and to the Allapattah area. Mr. Sosa: That's correct. The original scope of these services, as they were envisioned when the contracts were procured several years ago, have grown and we are performing additional studies and expanding the existing studies to cover these types of items. Yes. Chair Gort: Okay, thank you. Discussion. Commissioner Sarnoff.. Move RE.2. Chair Gort: It's been moved by Commissioner Sarnoff -- Commissioner Dunn: Second. Chair Gort: -- second by Commissioner Dunn. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING AN INCREASE TO THE PROFESSIONAL SERVICES AGREEMENT WITH COASTAL SYSTEMS INTERNATIONAL, INC., FOR THE PROVISION OF MISCELLANEOUS MARINE AND COASTAL ENGINEERING SERVICES, IN AN AMOUNT NOT TO EXCEED $200,000, THEREBY INCREASING THE TOTAL CONTRACT AMOUNT FROM $750,000, TO AN AMOUNT NOT TO EXCEED $950,000; ALLOCATING FUNDS FOR SAID INCREASE FROM THE APPROPRIATE CAPITAL IMPROVEMENT PROJECT; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NUMBER 2 TO THE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, FOR SAID PURPOSE. City ofMiami Page 51 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00535 Summary Form.pdf 11-00535 Pre-Legislation.pdf 11-00535 Legislation.pdf 11-00535 Exhibit 1.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Dunn II Absent: 1 - Commissioner(s) Carollo RE.4 11-00536 Department of Capital Improvements Program R-11-0293 Chair Gort: RE.3. Albert Sosa (Director, Capital Improvements Program): RE.3 is a similar item to the one previously presented for our miscellaneous marine and coastal engineering services. I do want to bring to the attention of the Commission a scrivener's error on the agenda item form only. The legislation is correct. The background information, the body of the agenda summary form is correct. There was a scrivener's error on the agenda item summary form under "Purpose of Item." This item is in fact increasing the capacity by $200, 000, not the 250,000 listed there, to a total contract amount of $950, 000. Again, it's a scrivener's error that occurred on the -- only on the agenda item summary form. Commissioner Sarnoff.. Move -- Mr. Sosa: This item, similar to the previous one, is to increase the existing capacity of one of our existing consultants who is currently working on our numerous FIND (Florida Inland Navigation District) grants that we have currently in process. We have a very robust FIND grant program that I'm happy to report that today we have preliminary word that it looks like we 're going to get in this cycle $3.3 million worth of grants from the FIND organization. This consultant works to support those grants to develop them, develop the designs and ultimately implementation in the field. Similar to our previous discussion, this consultant has the history and the knowledge associated with those ongoing projects, and it would be very efficient and beneficial for the City to continue to utilize them in support of these grant efforts. Chair Gort: Thank you. Commissioner Sarnoff.. Move RE.3. Commissioner Suarez: Second. Chair Gort: Moved by Commissioner Sarnoff, second by Commissioner Suarez. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE A JOINT PARTICIPATION AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH THE BAYFRONT PARK MANAGEMENT TRUST (TRUST), FOR THE BAYFRONT PARK ELECTRICAL REPAIRS PROJECT ("PROJECT"); ACCEPTING THE CONTRIBUTION OF FUNDS FROM THE TRUST, IN THE AMOUNT NOT TO EXCEED $309,000, FOR SAID PROJECT. City ofMiami Page 52 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00536 Summary Form.pdf 11-00536 Legislation.pdf 11-00536 Exhibit 1.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Dunn II Absent: 1 - Commissioner(s) Carollo R-11-0294 Chair Gort: RE.4. Albert Sosa (Director, Capital Improvements Program): RE.4 is a resolution authorizing the City Manager to enter into a joint participation agreement with the Bayfront Park Management Trust. The Trust wishes to fund the project, which is in the amount of $309, 000. Specifically what they're looking for is support from the City in the design, permitting, construction, and management of all those processes as it relates to their existing lighting and electrical systems at their facility. They would be funding the project and funding our services associated with that. So we would -- the City's CIP (Capital Improvement Programs) staff would be acting in support of the Bayfront Trust as it relates to these items. Chair Gort: Thank you. Commissioner Sarnoff. I'll -- on behalf of the chairman of the Bayfront Trust and being the past chairman, I move RE.4. Commissioner Suarez: Second. Chair Gort: Okay, it's been moved by Commissioner Sarnoff, seconded by Commissioner Suarez. Any further discussion? Being none, all in favor, state it by saying aye." The Commission (Collectively): Aye. Commissioner Sarnoff. Like to recognize that Tim Schmand is in the back and so is Nathan Kurland who's on more boards than I care to count, but he is also on the Bayfront Trust. Gentlemen, you did a great job today. Chair Gort: Thank you. RE.5 RESOLUTION 11-00538 Downtown A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE Development MIAMI DOWNTOWN DEVELOPMENT AUTHORITY, OF THE CITY OF MIAMI Authority OF MIAMI-DADE COUNTY, FLORIDA, TO ESTABLISH A PROPOSED MILLAGE RATE; ADOPTING THE TENTATIVE LEVYING OF AD VALOREM TAXES FOR THE DOWNTOWN DEVELOPMENT DISTRICT OF THE CITY OF MIAMI, MIAMI-DADE COUNTY, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2011 AND ENDING SEPTEMBER 30, 2012. 11-00538 Pre -Legislation - Board of DDA.pdf 11-00538 Memo - Proposed DDA Millage Rate 07-28-11.pdf 11-00538 Legislation (Version 2) 07-28-11.pdf 11-00538-Submittal-Memo-Substitution For Item RE.19 Change In Legislation.pdf City ofMiami Page 53 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, 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 RE.5 was deferred to the Commission Meeting scheduled for July 28, 2011. RE.6 RESOLUTION 11-00539 Department of Solid A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Waste ATTACHMENT(S), RELATING TO THE PROVISION OF SOLID WASTE SERVICES, FACILITIES AND PROGRAMS IN THE CITY OF MIAMI, FLORIDA; DESCRIBING THE METHOD OF ASSESSING SOLID WASTE COSTS AGAINST PROPERTY LOCATED WITHIN THE CITY OF MIAMI; DIRECTING THE PREPARATION OF AN ASSESSMENT ROLL; AUTHORIZING A PUBLIC HEARING FOR SEPTEMBER , 2011; AND DIRECTING THE PROVISION OF NOTICE THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. 11-00539 Summary Form.pdf 11-00539 Legislation.pdf 11-00539 Exhibit SUB.pdf 11-00539-Submittal-Current Recycling vs. Conversion to Single Stream.pdf 11-00539-Submittal-Solid Waste.pdf Motion by Commissioner Dunn II, seconded by Commissioner Sarnoff, that this matter be ADOPTED FAILED by the following vote. Votes: Ayes: 2 - Commissioner(s) Sarnoff and Dunn II Noes: 3 - Commissioner(s) Gort, Carollo and Suarez R-11-0300 (RE.6) RESOLUTION 11-00539 Department of Solid A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Waste ATTACHMENT(S), RELATING TO THE PROVISION OF SOLID WASTE SERVICES, FACILITIES AND PROGRAMS IN THE CITY OF MIAMI, FLORIDA; DESCRIBING THE METHOD OF ASSESSING SOLID WASTE COSTS AGAINST PROPERTY LOCATED WITHIN THE CITY OF MIAMI; DIRECTING THE PREPARATION OF AN ASSESSMENT ROLL; AUTHORIZING A PUBLIC HEARING FOR SEPTEMBER 15, 2011; AND DIRECTING THE PROVISION OF NOTICE THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. 11-00539 Summary Form.pdf 11-00539 Legislation.pdf 11-00539 Exhibit SUB.pdf 11-00539-Submittal-Current Recycling vs. Conversion to Single Stream.pdf 11-00539-Submittal-Solid Waste.pdf Motion by Chairman 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-11-0300 City ofMiami Page 54 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: RE. 6. Keith Carswell (Assistant Director, Solid Waste): Good afternoon, Commissioners. RE (Resolution) -- we have a survey that was completed by the Department and -- that we're giving you a hardcopy. Commissioner Dunn: Could you state your name for the record. Mr. Carswell: Oh. Keith Carswell, assistant director, Department of Solid Waste. And we also have it on the screen. RE.6 is a proposed resolution to, I would say, modestly adjust the solid waste fee to $15 to -- bringing it to $395. What you have before you is a comparison. Oftentimes when we talk about the solid waste fee, we oftentimes talk about it in isolation, meaning that we know what the fee's been as a resident of the City ofMiami and we may know by comparison what other municipalities charge. What we try to do here is look at it relative to the level of service that's being provided. So by level of service, we looked at the garbage pick-up, we looked at the recycling pick-up, trash pick-up, as well as if there were any limitations associated with that, and a mini dump, which is a luxury. So based on the level of service, basically, how oftentimes -- how often we go to a unit. The cost per trip for the City ofMiami is the lowest -- relative to the municipalities that we surveyed is $1.90 per trip, which is being proposed. Now, as you look at this, by comparison, you will see that the City of Hialeah is $2.31; Miami -Dade County itself is $3.33. Now what's also very interesting to note is that when you take a look at trash pick-up, we provide trash pick-up on a weekly basis. Andl think where that old commercial where it talks about ` priceless, " the amount of pick-up that we provide and the number of times, there's no limit. If you take a look by comparison at the County, it is twice a year, and after that you have to pay for the additional pick-up. If you take a look at, for example, the City ofMiami Beach, you're limited by the number of pounds and how many bags you provide. So, in essence, I think if you take a look by comparison, relative to other municipalities, you'll see that the cost per trip for the solid waste services that are being provided to the City ofMiami residents is the most inexpensive service that's being provided. In other words, we're getting Cadillac service at a Pinto price. And so with that, we would ask that you would consider the proposed and modest adjustment to the solid waste fee, which will provide an additional $1 million from prior year. Commissioner Sarnoff. Mr. Manager. Johnny Martinez (City Manager): Yes. Commissioner Sarnoff. Sorry, Mr. Chair. Mr. Martinez: I agree with everything that Keith said. And the approach this year -- because I remember what the discussion last year is to put it in terms of a cost benefit analysis. And for six more cents per activity or pick-up, we generate a very much needed $1 million, and we'll still be the cheapest of all the municipalities. Commissioner Sarnoff. Mr. Manager -- I apologize. Commissioner Dunn: Go ahead. Commissioner Sarnoff. Every year I do this. I intend on doing it this year, andl intend on doing it until it occurs or my term up here runs out. I would like to know how much would it cost for the City ofMiami to go single -stream recycling and then to demonstrate to this Commission how if you pay a dollar today, you save three dollars later in tipping fees. Mr. Carswell: It would cost us $3.5 million. City ofMiami Page 55 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff.. And how much -- Mr. Carswell: And we have an analysis that we can provide to you. Commissioner Sarnoff.. -- would it cost in terms of raising the garbage fee today? And just for the record -- and let me just -- Commissioner Suarez: Forty five dollars. Commissioner Sarnoff.. -- let me put a little color on this because by going single stream -- some people may not know what that means. The County in Miami -Dade has for the past, I think, eight or nine years had single -stream recycling. Those are the big green cans that you see -- that you actually don't break out your recycling; they do it in a single stream for you. That has saved the County countless dollars in tipping fees. And so what I'm proposing is that the City of Miami go to the same system that the County does, which is that we would equally have a single -stream recycling scenario which would save us -- because people would do a more effective job of recycling, lessening the amount of times we have to bring our garbage, which is non -recyclable, to the garbage dump, which causes us to have what's known as tipping fees. Mr. Carswell: I couldn't agree with you more. If you take a look at it -- andl can walk you through the analysis. But the bottom line is that if you look at our current operation for just recycling alone, we're losing $281, 000. That's in actual hard loss. That's a loss. Versus if we were to convert to single -stream recycling with an investment of 3.5 million for containers, we would actually between -- through a combination of revenue and cost -savings, realize $779, 000, and the payback on that investment is a little under five years, four point four years. And that's based on 69,300 homes, but we would also want to purchase additional containers for replacements and those that are stolen. Now just to kind of chime in a little bit -- and the Commission, you may not be aware -- through our curbside recycling program, we have a contract with WSI (Waste Services of Florida, Inc.). We actually get paid for the materials that are taken to WSI for processing. Currently they're paying us 11.69 a ton, minus 5 percent. They recent proposed paying us $19. That's a ton. That is their initial offer. Hopefully they can do a little better as we move forward. But by comparison, that 11.69 minus 5 percent per ton is currently what the County's getting. So if we do additional research, we'll find that we're getting more than what other municipalities and other counties are providing. So that alone, we thought -- conservatively, we thought that we would see an additional increase in recycling by about 9,000 tons per year. Just to give you a ballpark, we were projected to do about 2,878 tons this current year. With the recycling conversion to single stream with Miami -Dade County, they saw a 71 percent increase in recycling. With Hialeah, which recently converted to single stream about four months ago, they saw over 300 percent increase in recycling, and they saw, I believe, about 50,000 in savings so far just from recycling alone. So we think, in talking with the Manager, that it is a good investment for the City. We think that it's something to consider. And again, if you take a look at the recycling operation, which makes it so -- almost a no -brainier, currently we have five recycling routes and we have two persons per vehicle, per truck. You have one person that's the driver. You have another person that goes out and pick up the container and put it in the vehicle. With the recycling, we're projected to use three routes, three drivers because it's a one -harm bandit. In the hybrid vehicles that we're looking at using, we've already purchased. Either we have them this week or next week. We'll be getting them from GSA (General Services Administration). So from an economical standpoint, from a long-term investment standpoint, we think that it's a good investment on the City's part, even given these tough economic times. And one of the things too, as we develop the program, what saves us money is that everything that goes into recycling is not -- we're not paying tipping fees to the County on. And on average, we're paying about $61 a ton in tipping fees to the County. So everything that goes to recycling where we get $11 -- what's being proposed is $19 a ton, minus 5 percent, we're making money off that. We're making money off what gets taken, plus we're making money off the avoidance of the tipping fees. So again, I think if you look through the City ofMiami Page 56 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 numbers -- and I'm sure Commissioner Carollo will look through -- and sometimes the numbers speak for themselves. Andl think the numbers in this case not only tell the story, butl think that they tell a -- they provide a novel of what we -- of why we should move forward in this direction. Commissioner Dunn: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Dunn: Were you finished? Commissioner Sarnoff.. Go ahead. Commissioner Dunn: No. I was -- wanted to chime in and reiterate the question that was raised earlier by my colleague, Commissioner Suarez, in regards to efficiency. This is one example. And in the words of the biblical character -- well, when queen of Sheba met Solomon and she heard all the fanfare about how powerful and wise he was, this not even half of it, and that's what she said. The half has not been told. So I want to chime in -- with that, I would like to make a motion that we -- with discussion. Commissioner Suarez: Thank you. Mr. Chairman. Chair Gort: There's a motion. Is there a second? Commissioner Sarnoff.. Second the motion. Chair Gort: Second. Commissioner Dunn: The motion's for what, though? Vice Chair Carollo: What's the motion? Chair Gort: For what? Commissioner Dunn: That we amend -- Mr. Martinez: The item was to increase the solid waste fee. Commissioner Dunn: From 380 to 395, but it be amended to reflect September 15, 2011 at 5: 05 p.m. Chair Gort: What? Commissioner Dunn: We have to do that for budget purposes. Todd Hannon (Assistant City Clerk): Chair, excuse me. The way that the legislation is -- the current version of the legislation does not have a date and time for the hearing, so we -- somebody need to put on the record when the special assessment is going to be heard and at what time. Commissioner Sarnoff.. I want to second your motion. However, I also want to bargain for and try to finally get single -stream recycling in the City ofMiami. This is the city -- this is the biggest city in all of Florida. This is a city that's supposed to be a leader and was a leader in all T,FD [sic] concepts, you know, LEED (Leadership in Energy and Environmental Design) certification. This is something that is so overdue. And if you pay a dollar today, you get back three dollars tomorrow. Okay, we went through that analysis. What about the impact we're having to our City ofMiami Page 57 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 environment? What about the fact that we could be recycling, not spending so much in oil, not creating all these plastic bottles. If you look at what Public Works has to do to get the bottles out of our sewer system, the amount of time and effort. I've put this on the screen when I first became Commissioner here. My first year, my second year, my third year, and finally they say to me, is this that same "the bottle" demonstration you're giving us. I could tell you about the plastic swirl out in the Pacific Ocean that is three times the size of Texas that has golf balls and plastic bottles swirling in a figure eight. It's been doing it for the past 11 years. You know, I don't have children, and I guess there'll be plenty of resources for me before I die, but I don't know that they'll be plenty of resources in America when your grandkids grow up. And unless somebody starts taking a stand right here, right now and says tough economic times, no two ways about it. Citizens are going to see a slight decrease in their taxes on the average. Let's invest that money in our children's future because that's what we should be doing. Let's invest and make sure that we take less oil. Let's invest and make sure that we don't keep these plastic bottles perpetually in our sewer system, perpetually going out into the ocean. And let's make this a better, cleaner America, a better, cleaner Florida, and a better, cleaner Miami. We will arrive at savings not only in tipping fees. We will arrive at savings not only in Public Work fees. We will arrive at savings not only in the fact that the streets won't flood. It is just the right thing to do for Mother Nature. It is the right thing to do. And more -- I said it before. Let's not kick the can down the road. Let's not kick the can down the road. Let's pick up the can. Let's recycle the can. Vice Chair Carollo: Can we afford it? Commissioner Suarez: Mr. Chairman. Chair Gort: Excuse me. Commissioner Sarnoff.. And you know what the beauty is? And I'll finish with -- Vice Chair Carollo: Let's talk about that. Commissioner Sarnoff.. Let me just say it. Vice Chair Carollo: Can we afford that can? Commissioner Sarnoff.. We can afford it if you take a look at this and you think it's right. Commissioner Suarez: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Suarez: Please. Thank you. I am a huge proponent of recycling and I'm a huge proponent of efficiency, as Commissioner Dunn stated, and it totally makes sense from what I'm looking at here. This is the first time that I see this. I mean literally. And so when I was briefed on this item, I was not briefed on this, so I'd like to discuss it. I'd like to think about it. I'd like to talk about it because I agree with your general concept. Andl think -- not only do I agree with it, but I know several members of the community have come to me and have said why aren't we recycling more. So I think the public will is out there. I think you're right, that there will be huge demand once we get something -- a system that works 'cause the system that we currently have right now doesn't work. Now, I think, as Commissioner Carollo -- and we're both very similar in that sense; we want to know the details and we want to see how it plays into everything else. And so what I'm saying is I think it's a great idea. It looks like a great concept. Andl need to know a lot more about it, you know, before deciding on it. But it looks good in principle to me. Vice Chair Carollo: Mr. Chairman. City ofMiami Page 58 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Yes, sir. Vice Chair Carollo: And I came in in the middle of this discussion, and yes, I also -- this is the firstl see of this. I mean, in just real quick, it appears like we have to do an initial investment of $3.4 million, and the break even will be in four -- almost four and a half years. Mr. Carswell: And -- Mr. Martinez: Keith -- Mr. Carswell: -- what I would -- Mr. Martinez: -- can I ask -- Vice Chair Carollo: Break even. In other words -- Mr. Carswell: Right. Vice Chair Carollo: -- in order to see some savings, it'll be after four and half years since that's when we actually start seeing the savings of our investment. And I'm just going by your estimates. Mr. Carswell: Right. Mr. Martinez: Yeah. Is that an all -in cost or can we break it up in phases, recoup some money -- Mr. Carswell: Well -- Mr. Martinez: -- and then use that money to go into the next phase? Mr. Carswell: -- one of the things that we've talked about is that I would venture to guess -- and without going into details -- that we don't -- even hopefully with the modest adjustment that we're proposing, that we wouldn't write a check for $3.5 million just for the containers. The vehicles have already been purchased. They were purchased. And a portion of that was done with some grant monies that we received. Andl would also like to give Jose Davila, who's with GSA, the credit. He's the project manager on that and has really been the person spearheading that. What we've been -- we have been in discussions with a leasing company and we've looked at lease purchase options. We've met with the treasurer. We've met with the Finance Department. We have a pending meeting next week with the City Manager. If we were to look at a lease purchase arrangement, that would not impact any financing covenants that we may have. And so what we would like to do, hopefully with your permission, is that we can come back to you at the next -- most -- next available date to talk about how we would finance this. And what we propose is a combination where we may look at some type of lease purchasing arrangement, which is what Hialeah did, and there's a contract also -- Procurement has looked at it as well. We can piggyback off of a contract with the City of Clear Wat -- St. Pete. And actually Coral Gables has piggybacked off the same contract. So there could be a combination hopefully with this modest adjustment to the fee with maybe some lease purchasing where we can afford this. I don't see it as a luxury, but maybe a necessity in a long-term investment as we move forward. Also what is very key to this is that if you take a look, we're talking about 214,000 in revenues. Now the key to this payback being over a shorter period of time is that we need to educate the public. And so what we would want to do through that project process is maybe reserve some of that money, set aside in a special revenue account to provide marketing, promotions, work through the schools so that we can educate the public about this recycling opportunity. City ofMiami Page 59 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Let me tell you what my problem is. I really like to get more information and I'd like to go back and you put your thinking hat on. And I don't want the same thing to happen in the Virginia Key. I mean, there was a -- you came up. We voted on the program. You were going to establish where we're going to make, I think it was about half a million dollars. We had to purchase equipment. My understanding, we not even 50 percent of that goal. I'd like to see, yes, accomplish this. Go back, sit down, and see how you can find the fundings. And what you can do, what changes you can make so you can get the fundings to do so. At the same time, the franchise fees, at one time -- and we have been discussing this with you all -- were at $12 million and they came down to $9 million. Andl think that we need to really look into those franchise fee because I think instead of having this (UNINTELLIGIBLE) -- this fee that you want to establish, you might be able to get the funding from those franchise fee that not being collected. And that's how I feel about this. Vice Chair Carollo: Question. I came in in mid discussion. I understand we're discussing now the recycling and this schedule presentation or so forth that you gave to us, but your -- am I understanding correctly, if we increase the garbage fee, then we could do some type of recycling or --? How did the two get mixed up? And what's the motion on the floor also? Commissioner Dunn: HI may? Vice Chair Carollo: Those are the two questions. What -- Commissioner Dunn: Okay. The actual -- Vice Chair Carollo: -- how did they get mix --? Commissioner Dunn: -- motion -- Vice Chair Carollo: Right. Commissioner Dunn: -- I believe on the floor, correct me, Mr. Clerk, is that we go with the motion to increase the fees from 380 to 395, and my colleague, in all due respect, talked about single streaming. The actual motion is for the increase of $15, which we dealt with. We have not -- I was prepared to amend that to -- to modifi, that motion, but if that's something -- I don't know if we can question -- I don't know if we can vote on the fee increase now or do we need to just do it all together. Mr. Carswell: IfI may, Commissioner. Commissioner Dunn: Yes. Mr. Carswell: What the Administration would propose is that hopefully you would approve the modest adjustment to the fee that we're proposing, allow us then at the next meeting to come back to you with a financing mechanism or plan in order for us to go single -stream recycling, so it's two separate things. Andl think as -- we were talking about the proposed modest adjustment to the fee. Commissioner Sarnoff had expressed at the last Commission meeting, I believe, the desire to go single stream. So again, if we were to look at this proposed adjustment -- and one of the reasons thatl believe we could -- I guess in terms of a value to the residents is say hey, look, a portion of this increase is going to go towards us being able to go single stream, so they're getting a little value that they can see immediately for the modest adjustment that we're talking about. Commissioner Dunn: Mr. Chairman. Commissioner Sarnoff.. And -- can I just -- City ofMiami Page 60 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Dunn: Go ahead. Commissioner Sarnoff.. -- pipe in. And Mr. Carswell, this is something) brought up every year since I've been here. However, that's the best presentation I've ever been privy to is the one you've just done. And just by doing a few calculations -- and if what the Mayor says is accurate -- if the average citizen in Miami will recoup $30 this year from the City of Miami's reduction and if they will recoup, I believe it's something in the neighborhood of 45 to $50 per year from the County's reduction, if you lived in the City ofMiami -- and this is if you just threw it at us all at once, no lease option, purchase, this is your hard cost -upfront capital investure [sic], it would cost $52. And you would, in four years, start doing reductions because you'd have the ability to start giving back money. I'm saying this is the time, this is the opportunity. We're the only major city in Florida that doesn't do this. Commissioner Dunn: Mr. Chairman, I just want to -- Chair Gort: Yes. Commissioner Dunn: -- just for a -- thank you -- just want to -- just refresh our memory. I'm sure we already remember. Last year there was a similar proposal to increase it by $30, but what we did we compromised with 15 so it wouldn't be so difficult and hard on the residents of the City all at one time. This is really a portion or the second portion -- well, we gave a gauge between 380 and 395 -- we gave ourselves up to 395, and as a compromise, we split it in half. I think this would be the second part of that this year. And given the comparative analysis that we've been presented with, I have to honestly say, to me it's a no -brainier. Chair Gort: Okay, there's a motion and a second. Any further discussion? Mr. Hannon: Chair, the seconder was? Commissioner Sarnoff.. I'll second. Chair Gort: Okay. All in favor, state it by saying aye." Mr. Hannon: Chair, one more moment. The motion is to increase from 380 to 395. In addition, you're authorizing a public hearing for September 15, 2011 at 5: 05 p.m. Just make sure the record is clear. Chair Gort: Okay. All in favor, state it by saying aye." Vice Chair Carollo: No. Julie O. Bru (City Attorney): No. Mr. -- Chair Gort: It's an ordinance? Ms. Bru: -- Mr. Chair, just for the record, there's a couple of things that have to be corrected in this resolution since the -- you said the budget hearing -- the first budget hearing for September 15. We just need to correct on page 5 -- out of 5 that it has to be noticed no later than August 26. So we have to fill in that date instead of the date that was here. And then also there's an error in the Exhibit C-1, and this is your initial assessment for the fiscal year commencing October 1, 2011. Just wanted to put those corrections on the record. Mr. Hannon: Thank you. City ofMiami Page 61 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Now can I call the question? All in favor, state it by saying aye." Commissioner Dunn: Aye. Commissioner Sarnoff.. Aye. Vice Chair Carollo: No. Chair Gort: Nos? Commissioner Suarez: No. Chair Gort: Three nos. Commissioner Dunn: Three nos. Chair Gort: Now, you can come back next board meetings [sic] and bring the idea, the finance and so on. Mr. Carswell: We have a time constraint. Because this is non ad valorem, it has to go out on the County's tax rolls. Andl think that the deadline for us to submit this is July 21, so -- which is beyond the next meeting date. Ms. Bru: You have to adopt your initial assessment -- Chair Gort: I understand. Ms. Bru: -- and this -- yeah. If you don't adopt it -- Chair Gort: Right. Ms. Bru: -- I think it falls back by default and then you cannot increase it. When you come back to adopt the final assessment in September, you will not be able to increase it. Commissioner Dunn: Mr. Chair. Chair Gort: Yes, sir. Commissioner Dunn: Here we go again. Can we look at possibly compromising the $15? Chair Gort: Look, last year I compromise. Things are not any better in some of our neighborhoods. The one thing we discussed in the past, people don't realize, the average income within the City ofMiami is $25, 000. This is your average income for the whole City. Unfortunate, we have a lot of our neighborhood where you have a lot of senior citizens that might not even get next month -- my understanding, they might not even get their Social Security check if they don't work it up on Washington. What I'm saying is, let them go back, look at all the options they have. Our -- my staff has been working with them in looking at some solutions that can be provided. Commissioner Dunn: Well, the only thingl think we're dealing with a time constraint. That's the only issue that think we're (UNINTELLIGIBLE). Let me just say this, andl think-- it's okay. We'll take whatever -- the will of the Commission. Chair Gort: You got to make the motion to approve the existing cost right now, this same one. We have to move on that one. City ofMiami Page 62 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Bru: Mr. Chair, my understanding of this process -- this is -- you're trying to put a non ad valorem assessment in the trim notice so that it can be collected along with your ad valorem taxes. Chair Gort: So we need a -- Ms. Bru: If you don't give something to the property appraiser by July -- Mr. Carswell: Twenty first. Ms. Bru: -- 21, then you run the risk -- this is not going to be on the trim notice, and you're going to have to send out a bill to each property owner to collect the solid waste fee, which then reduces your collection rate. So you have to establish something now. Chair Gort: I understand. The -- so we need a motion right now to maintain the same fee that we've been collecting last year. Vice Chair Carollo: No. We do not -- I don't think we need a motion for that. It stays the same. Chair Gort: Yes, you do. Unidentified Speaker: It's existing. Chair Gort: It stays the same or do you need a motion? Vice Chair Carollo: It stays the same. If no action, it stays the same, I believe. Ms. Bru: You have to establish an assessment -- an initial assessment roll. If we don't send -- Chair Gort: You have to. Ms. Bru: -- to the property appraiser an initial assessment roll, he doesn't put it in your tax bill. And we're going to have to send a separate bill to the property owners. Vice Chair Carollo: So what you're saying is that no action does not stay the same? Chair Gort: No. Vice Chair Carollo: It was my understanding that it did, but -- Commissioner Dunn: We have to establish it, right? Ms. Bru: It doesn't go in the trim bill. Commissioner Sarnoff. Right. Chair Gort: So you have to make -- Ms. Bru: Eventually you'll establish whatever rate it is, but then you'll have to send a bill in the mail to each property owner and you have the expenses of sending it out and also the collection rate is impaired. Chair Gort: Need a motion to maintain the price on the present fee, the existing fee that we have today. City ofMiami Page 63 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Why don't we table this item? I want -- Commissioner Dunn: Later on today? Vice Chair Carollo: Yeah, let's table this item. I want to make sure we have clarity and realistically -- 'cause it was my understanding that if we took no action, it just stayed the same. No action meant stay the same. Ms. Bru: Well, if you take no action -- you have to set the rate. You have to set the rate. Vice Chair Carollo: Hasn't the rate been set already? Ms. Bru: It has been set. Chair Gort: You have to reset it again. Vice Chair Carollo: You have to reset it every year. Chair Gort: Every year. Ms. Bru: You have to establish an assessment roll in order for the tax -- the property appraiser to send it along with the taxes, along with the ad valorem taxes. If you do not act now, it will not be on the tax bill. The City will have to bill the property owners. Commissioner Sarnoff.. We went through this once before, remember? Ms. Bru: Yes. Commissioner Sarnoff.. And you and I had a huge -- Ms. Bru: Yes. Commissioner Sarnoff.. It was our first fight. Ms. Bru: Yes. Commissioner Sarnoff.. We've done this before. Mr. Carswell: And that occurred about two years ago, actually, ifI may. Commissioner Sarnoff.. Yeah. And -- Mr. Carswell: We had to incur the cost of the mail out. Commissioner Sarnoff.. And our collection rate was substantially less than what it should have been. Chair Gort: We need a motion. Vice Chair Carollo: Let's table it for a few minutes. Chair Gort: That's fine with me. [Later..] City ofMiami Page 64 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Okay, next items. You're recognized. By the way, before we go on, there is a need for us to establish a fee for solid waste, and the fee last year was $380. I need a motion. No motion? Madam Attorney, will you explain that again? Vice Chair Carollo: Should we continue and table it again? Chair Gort: Fine with me. Go ahead. Ms. Bru: I'm sorry. You want me to talk about the procedure? This -- Chair Gort: Please. Ms. Bru: -- is a non ad valorem assessment. Last year when you adopted your assessment, the rate, you did it for only one year so you have to act this year in order to continue to collect a fee for your solid waste services. You have two ways of doing it. You can bill it along with the ad valorem taxes in the uniform tax bill and in order to do that, you would have to act today to set the initial rate and then it would be published in a newspaper 20 days before you finally adopt it on September 15. But in order for it to go on that trim notice, you have to act today because the property appraiser or the tax assessor has to have it by the 20th of July. Chair Gort: Okay. Thank you. [Later..] Chair Gort: Okey-doke. What's next? What's left? Ms. Bravo: I believe we tabled the solid waste fee discussion for RE.6. Chair Gort: Okay. My understanding, according to the discussion that we received of the -- by the City Attorney, we need to set the rate for the solid waste fee. My understanding, we want to leave it at the same fee that we had last year; no increase. Do I have a motion? Okay, it dies for lack of motion. What's next? Ms. Bravo: Other than that, I believe we just have the discussion items. Chair Gort: Discussion item. Vice Chair Carollo: Question. I just saw dies for lack of motion. Does that mean that then we have no solid waste fee or what --? Ms. Bru: You have to act today in order for it to appear in the tax bill. You can act today and adopt the same rate that you had last year. You can adopt a new rate. But you have to act today. Otherwise, you're going to incur the extra expense of having to mail the solid waste bill out come October 1 or whenever it is that it goes out. Vice Chair Carollo: Question. And -- I know Mirtha is not here. Can anyone give me concrete numbers of what is the amount that we will increase the shortfall if we do not pass anything, even if it's the rate that was the same as last year's? In other words, it'll be 380 times X'humber of homes and so forth. Can anyone -- Mr. Carswell: The -- Ms. Bru: We'll -- Vice Chair Carollo: -- in Finance, in Budget --? City ofMiami Page 65 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Bravo: We'll have Jennifer Ramirez come out and explain what's currently assumed in the fiscal year '12 budget. Mr. Carswell: What I can tell you for budgeting purposes in the resolution -- Chair Gort: And you are? Commissioner Dunn: State your name. Mr. Carswell: Keith Carswell, assistant director, Department of Solid Waste. We're budgeting in this 69,300 units. We don't say homes because we service single-family homes and up to triplexes, so 69,300 units. And the $15 adjustment represents additional for this year -- Vice Chair Carollo: Mr. Chairman. Chair Gort: Yeah. Vice Chair Carollo: Forget the $15 adjustment. Mr. Carswell: Okay. Well -- Vice Chair Carollo: Believe me -- Mr. Carswell: Okay. Vice Chair Carollo: -- we're not there. Mr. Carswell: Okay. Vice Chair Carollo: It was voted down. You're not going to get it unless something outrageous -- and anything is possible up here. But I strongly believe that you're not going to get that, so -- Mr. Carswell: Well -- Vice Chair Carollo: -- just -- let's stop talking about that. Mr. Carswell: Okay. Well, if -- Vice Chair Carollo: We're talking about last year's rate. Chair Gort: Sixty-nine thousand -- Mr. Carswell: -- rate was held constant? Vice Chair Carollo: Yes. Commissioner Dunn: Yes. Vice Chair Carollo: Because we're not even -- Mr. Carswell: And based on the number of units -- Vice Chair Carollo: -- at last year's rate. City ofMiami Page 66 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Carswell: -- which are 69,300 units, you're looking at $26, 334, 000. Vice Chair Carollo: Twenty-six million -- Mr. Carswell: Three hundred and thirty-four dollars. Sony; 26, 334, 000. Vice Chair Carollo: And that's with the same rate as last year? Chair Gort: Same rate as last year. Mr. Carswell: That's at $380 per unit. Chair Gort: Now what's the rate on mail? If it's to mailed out, what would be the cost? Commissioner Sarnoff.. Eighty-six thousand dollars. Mr. Carswell: I couldn't tell you off -- Chair Gort: Eighty-six thousand dollars. Commissioner Dunn: Eighty-six thousand. Chair Gort: Eighty-six thousand dollars. In other words, if we don't make a motion today, we're going to have to pay $86, 000. Commissioner Dunn: Mr. Chairman, I'll just put it on the record. We need to be fiscally prudent. Vice Chair Carollo: Go ahead, Mr. Chairman. Chair Gort: I'll make the motion to -- the solid waste, to leave it as the same as last year, $380. Vice Chair Carollo: There is a motion by Commissioner -- or Chairman Gort to leave the solid waste fee the same as last year, at the rate of $380 per unit. Chair Gort: That's correct. Vice Chair Carollo: Is there a second? Commissioner Dunn: I'll second that motion. Vice Chair Carollo: Seconded by Commissioner Dunn. Mr. Hannon: Excuse me. Vice Chair, before we vote. Madam City Attorney, do you need to state the modifications again for the legislation, and do we also need to put on "authorizing a public hearing for September 15, 2011 at 5: 05 p.m.?" Ms. Bru: Right. And then the notice no later than August 26, and then we would have to modify the appendix to provide for the new rate that's being discussed. Chair Gort: Okay. Vice Chair Carollo: Any discussion? Hearing no discussion, all in favor, say "aye. " The Commission (Collectively): Aye. City ofMiami Page 67 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Motion carries unanimously. Mr. Hannon: I will record that as 5-0. Vice Chair Carollo: And -- yes, 5-0. Mr. Hannon: Okay. As amended. Vice Chair Carollo: Hold on. Anyone in opposition has the same right to say "nay. " Motion carries unanimously at the same rate as last year. Chair Gort: Thank you all. Mr. Carswell: Thank you. Chair Gort: We just save -- Vice Chair Carollo: Twenty-six million dollars. Any other -- Chair Gort: Mistakes -- RE.7 RESOLUTION 11-00540 Office of Grants A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Administration ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO ACCEPT A TOTAL AMOUNT OF $86,722.19 IN THE FORM OF A REIMBURSEMENT GRANT ("GRANT") FROM THE CHILDREN'S TRUST ("TRUST') TO THE CITY OF MIAMI'S ("CITY'S") DEPARTMENT OF GRANTS ADMINISTRATION'S EDUCATION INITIATIVES (DEPARTMENT), FOR THE MIAMI LEARNING ZONE OUT OF SCHOOL PROGRAM ("PROGRAM"), AND AUTHORIZING THE CITY'S IN -KIND SERVICES MATCH IN THE TOTAL AMOUNT OF $7,883.84 TO FUND THE PROGRAM ADMINISTERED BY THE DEPARTMENT AT HOLMES ELEMENTARY SCHOOL; ESTABLISHING A NEW SPECIAL REVENUE PROJECT ENTITLED: "THE CHILDREN'S TRUST GRANT FOR EDUCATION INITIATIVES 2011-2012", TO ACCEPT THE GRANT, APPROPRIATING THE GRANT FUNDING IN THE AMOUNT OF $86,722.19, WITH IN -KIND SERVICES TO BE APPROPRIATED BY THE CITY VALUED AT $7,883.84; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND TO EXECUTE A CONTRACT WITH THE CHILDREN'S TRUST AND TO NEGOTIATE AND EXECUTE ALL OTHER NECESSARY AMENDMENTS, EXTENSIONS, AND MODIFICATIONS, AFTER CONSULTATION WITH THE CITY ATTORNEY, TO IMPLEMENT THE ACCEPTANCE OF AND COMPLIANCE WITH THE GRANTAWARD FOR SAID PURPOSES, FOR THE PERIOD COMMENCING AUGUST 1, 2011 THROUGH JULY 31, 2012, WITH THE OPTIONS TO RENEW FOR UP TO TWO (2) ADDITIONAL SIMILAR PERIODS AT THE SAME NOT -TO -EXCEED AMOUNTS UNDER THE SAME TERMS AND CONDITIONS FOR THE PROGRAM AT HOLMES ELEMENTARY SCHOOL,SUBJECT TO BUDGETARY APPROVAL AT TIME OF NEED. 11-00540 Summary Form.pdf 11-00540 Legislation (Version 2) 07-28-11.pdf 11-00540 Exhibit 1 07-28-11.pdf City ofMiami Page 68 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RE.8 11-00203 Department of Capital Improvements Program RE.9 11-00301 Note for the record: Item RE.7 was deferred to the Commission Meeting scheduled for July 28, 2011. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE CITY OF MIAMI'S ("CITY'S") AMENDED 2010-2011 MULTI -YEAR CAPITAL PLAN ("PLAN"), WHICH INCLUDES THE PROJECTS IN DISTRICT3, ATTACHED AND INCORPORATED, AS REQUIRED BY SECTION 163.3177, FLORIDA STATUTES (2010), AND PURSUANT TO CHAPTER 18/ ARTICLE IX/DIVISIONS 1 AND 2 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "FINANCE/FINANCIAL POLICIES/ANTI-DEFICIENCY ACT/FINANCIAL INTEGRITY PRINCIPLES," TO SET FORTH THE CITY'S FISCAL NEEDS FOR CAPITAL IMPROVEMENTS, SUBJECT TO AN ANNUAL PLAN REVIEW, TO DETERMINE PROJECT PRIORITIES AND TO MODIFY FUNDING ALLOCATIONS AS NECESSARY. 11-00203 Summary Form.pdf 11-00203 Legislation.pdf 11-00203 Exhibit 1.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II Department of Capital Improvements Program RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING AN INCREASE TO THE CONTRACT WITH GIANNETTI CONTRACTING CORP., FOR THE NORTH BAYSHORE DRIVE DRAINAGE IMPROVEMENTS PROJECT, B-50658, FOR PAYMENT OF THE FINANCIAL INCENTIVE AS PER THE CONTRACT, IN AN AMOUNT NOT TO EXCEED $76,968.26, THEREBY INCREASING THE AWARD VALUE FROM $1,539,365.24, TO AN AMOUNT NOT TO EXCEED $1,616,333.50; ALLOCATING FUNDS FOR SAID INCREASE FROM CAPITAL IMPROVEMENT PROJECT NO. B-50658; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE CONTRACT, IN SUBSTANTIALLY THE ATTACHED FORM, FOR SAID PURPOSE. 11-00301 Summary Form.pdf 11-00301 Letter - Drainage Project CIP B#50658.pdf 11-00301 Pre - Legislation.pdf 11-00301 Legislation.pdf 11-00301 Exhibit 1.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be DEFERRED PASSED by the following vote. City ofMiami Page 69 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RE.10 11-00421 Office of Strategic Planning, Budgeting, and Performance RE.11 11-00602 Note for the record: Item RE.9 was deferred to the Commission Meeting scheduled for October 13, 2011. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION MAKING AMENDMENTS TO APPROPRIATIONS RELATING TO OPERATIONAL AND BUDGETARY REQUIREMENTS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2011. 11-00421 Summary Form.pdf 11-00421 FY'11 Amending Budget 07-28-11.pdf 11-00421 Legislation.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II Office of Strategic Planning, Budgeting, and Performance Note for the record: Item RE.10 was deferred to the Commission Meeting scheduled for July 28, 2011. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ADDING CAPITAL PROJECTS APPROPRIATIONS TO THOSE LISTED IN RESOLUTION NO. 11-0183, ADOPTEDAPRIL28, 2011, AND REVISING CURRENT APPROPRIATIONS AMONG APPROVED PROJECTS; FURTHER APPROPRIATING FUNDING FOR THE ADDED PROJECTS. 11-00602 Summary Form.pdf 11-00602 Legislation.pdf 11-00602 Exhibit 1.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Dunn II Absent: 2 - Commissioner(s) Carollo and Suarez R-11-0295 Chair Gort: RE.11. Albert Sosa: Albert Sosa, director of CIP (Capital Improvement Programs). Good afternoon. RE.11 is a resolution to appropriate new funding sources and to amend the capital improvements appropriation resolution to reflect the addition of these new funding sources as well as the reprogramming of existing funds, specifically the new funds that are coming in are grants from Miami -Dade County as well as the Florida Department of Transportation in support of various programs that we have. For example, the FEC (Florida East Coast) Quiet Zone Study in the case of the Miami -Dade County grant, and in the case ofFDOT (Florida Department of Transportation) in support of our Miami River Greenway projects. And these appropriations in addition to those new grants that are specific to the projects that they're funding, we're also reprogramming funding internally to support the ongoing capital needs of the City. City ofMiami Page 70 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 RE.12 11-00595 Department of Fire -Rescue Chair Gort: Do I have a motion? Commissioner Sarnoff.. So moved. Commissioner Dunn: Second. Chair Gort: It's been moved and second. Moved by Commissioner Sarnoff, second by Commissioner Dunn. Any further discussion? Being none, all in favor, state it by saying aye." The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND TO EXECUTE, SUBJECT TO APPROVAL OF LEGAL FORM AND CORRECTNESS BY THE CITY ATTORNEY, A PROFESSIONAL SERVICES AGREEMENT ("PSA") BETWEEN THE CITY OF MIAMI ("CITY"), THROUGH ITS DEPARTMENT OF FIRE RESCUE (DEPARTMENT), AS THE SPONSORING AGENCY OF FLORIDA TASK FORCE 2 UNDER THE UNITED STATES DEPARTMENT OF HOMELAND SECURITY'S NATIONAL URBAN SEARCH & RESCUE RESPONSE SYSTEM, ACTING THROUGH THE FEDERAL EMERGENCY MANAGEMENT AGENCY, THE STATE OF FLORIDA, WITH EACH OF THE CURRENT AND ANTICIPATED STRATEGIC INDIVIDUALS ON "EXHIBIT A", ATTACHED AND INCORPORATED; AUTHORIZING THE CITY MANAGER, SUBJECT TO CONSULTATION WITH THE DEPARTMENT, TO NEGOTIATE AND TO EXECUTE ANY FUTURE AMENDMENTS, EXTENSIONS, AND/OR SUPPLEMENTS TO THE FORM OF PSA, SUBJECT TO THE APPROVAL OF LEGAL FORM AND CORRECTNESS BY THE CITY ATTORNEY AND SUBJECT TO BUDGETARY APPROVAL AT THE TIME OF NEED. 11-00595 Summary Form.pdf 11-00595 Legislation.pdf 11-00595 Exhibit 1.pdf Motion by Commissioner Dunn II, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Dunn II Absent: 2 - Commissioner(s) Carollo and Suarez R-11-0296 Chair Gort: RE.12. Deputy Fire Chief Reginald Duren (Fire -Rescue): Reggie Duran, deputy fire chief. RE.12 is a resolution authorizing the City Manager to negotiate and execute a professional services agreement between current and anticipated individuals of the City ofMiami South Florida Task Force 2 and FEMA (Federal Emergency Management Agency). This agreement will allow members of nonaffiliated -- members nonaffiliated with a government agency to participate as members of the Urban Search and Rescue Team. Chair Gort: Okay. City ofMiami Page 71 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 RE.13 11-00596 Department of Fire -Rescue Commissioner Dunn: Move. Chair Gort: It's been moved by Commissioner Dunn -- Commissioner Sarnoff.. We're on -- I'm sorry -- RE.12? Deputy Fire Chief Duren: Yes. Commissioner Sarnoff.. Okay. I second it. Chair Gort: -- second by Commissioner Sarnoff. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND TO EXECUTE, SUBJECT TO APPROVAL OF LEGAL FORM AND CORRECTNESS BY THE CITY ATTORNEY, A MEMORANDUM OF AGREEMENT ("MOA"), BETWEEN THE CITY OF MIAMI ("CITY") THROUGH ITS DEPARTMENT OF FIRE -RESCUE (DEPARTMENT), AS THE SPONSORING AGENCY OF FLORIDA TASK FORCE 2 UNDER THE UNITED STATES DEPARTMENT OF HOMELAND SECURITY'S NATIONAL URBAN SEARCH & RESCUE RESPONSE SYSTEM, ACTING THROUGH THE FEDERAL EMERGENCY MANAGEMENT AGENCY, THE STATE OF FLORIDA, WITH EACH OF THE CURRENT AND ANTICIPATED PARTICIPATING AGENCIES ON "EXHIBIT A", ATTACHED AND INCORPORATED; AUTHORIZING THE CITY MANAGER, SUBJECT TO CONSULTATION WITH THE DEPARTMENT, TO NEGOTIATE AND EXECUTE ANY FUTURE AMENDMENTS, EXTENSIONS, AND/OR SUPPLEMENTS TO THE MOA, SUBJECT TO THE APPROVAL OF LEGAL FORM AND CORRECTNESS BY THE CITY ATTORNEY, AND SUBJECT TO BUDGETARY APPROVAL AT THE TIME OF NEED. 11-00596 Summary Form.pdf 11-00596 Legislation.pdf 11-00596 Exhibit 1.pdf Motion by Commissioner Dunn II, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Dunn II Absent: 2 - Commissioner(s) Carollo and Suarez R-11-0297 Chair Gort: RE.13. Deputy Fire Chief Reginald Duren (Fire -Rescue): RE.13 is a resolution authorizing the City Manager to negotiate and execute a memorandum of agreement between current and anticipated agencies, the City of Miami, South Florida Task Force II, and FEMA (Federal Emergency Management Agency). This agreement will allow members affiliated with a government agency to participate as members of the Urban Search and Rescue Team. City ofMiami Page 72 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 RE.14 11-00617 District 5 - Commissioner Richard Dunn II Commissioner Dunn: Move it. Chair Gort: Thank you. Been moved by Commissioner Dunn -- Commissioner Sarnoff.. Oh, I'm sorry. Second. Chair Gort: -- second by Commissioner Sarnoff. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. Deputy Fire Chief Duren: Thank you. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ACKNOWLEDGING AND CONFIRMING THAT IN THE EVENT TITLE TO THE PARCELS MORE FULLY DESCRIBED IN EXHIBIT "A" ("PROPERTY"), ATTACHED AND INCORPORATED, REVERTS TO THE CITY OF MIAMI ("CITY") AS A RESULT OF AN OCCURRENCE OF ANY OF THE EVENTS, TRIGGERING SUCH REVERSION, SPECIFIED IN THE DEED DATED DECEMBER 23, 2010 AND RECORDED IN OFFICIAL RECORDS BOOK 27537, PAGE 2972 OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY CONVEYING THE PROPERTY FROM THE CITY TO PARKVIEW GARDENS, LTD., THAT THE CITY'S TITLE TO THE PROPERTY WILL BE SUBJECT TO THE MORTGAGES THEN OUTSTANDING BY JP MORGAN CHASE BANK, N.A., FIRST HOUSING DEVELOPMENT CORPORATION OF FLORIDA AND MIAMI-DADE COUNTY; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE ACKNOWLEDGEMENTAND CONFIRMATION AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, FOR SAID PURPOSE. 11-00617 Summary Memo.pdf 11-00617 Pre-Legislation.pdf 11-00617 Legislation.pdf 11-00617 Exhibit 1.pdf 11-00617-Exhibit-Acknowledgement Agreement and Confirmation.pdf Motion by Commissioner Dunn II, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Dunn II Absent: 2 - Commissioner(s) Carollo and Suarez R-11-0290 Commissioner Dunn: Mr. -- Chair Gort: Yes, sir. Commissioner Dunn: I wanted to know if -- there are several people here who have been waiting for it -- we could take at some point, before we break for lunch, RE.14, please, sir. Chair Gort: RE.14? City ofMiami Page 73 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Dunn: Yes, sir. Should be a very simple item. Chair Gort: RE.14. We got a couple of public hearings that could be very fast. George Mensah: Good morning. George Mensah, director of Community Development. RE.14 is a resolution of the Miami City Commission, with attachments, acknowledging and confirming that in the event title to the parcels more fully described in Exhibit A, attached and incorporated, reverts to the City ofMiami as a result of an occurrence of any of the events of -- triggering -- any of the events, triggering such reversion, specified in deed dated October -- December 23, 2010 and recorded in official records book, that the public records -- that the City's title to the subject property be subject to the mortgages then outstanding by JP Morgan Chase Bank, First Housing Development Corporation of Florida, and Miami -Dade County. Commissioner Dunn: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Dunn: I would like to move this item. Commissioner Sarnoff.. Second. Chair Gort: It's been moved by Commissioner Dunn, seconded by Commissioner Sarnoff. Todd Hannon (Assistant City Clerk): Excuse me, Chair? Chair Gort: Any discussion? Do we --? Mr. Hannon: Excuse me, Chair. Mr. Mensah, I do have an agreement here, but I believe the legislation's going to be modified. Unidentified Speaker: Yes. Mr. Mensah: I believe that was distributed, so it's as modified. Unidentified Speaker: It was distributed in agenda briefings, so it would be with modifications. Mr. Hannon: Okay. Thank you. Chair Gort: What happened to the Commissioners? Commissioner Sarnoff.. Hopefully they're in the bathroom. Chair Gort: In other words, the motion is with the modification. Am I correct? Commissioner Dunn: That's correct. Chair Gort: Okay, it's been moved and been second. Any discussion? Being none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. Chair Gort: Okay. You want to take any of the public hearings or you want to break? Commissioner Sarnoff.. You want to do public hearings? City ofMiami Page 74 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 RE.15 11-00620 District 2- Commissioner Marc David Sarnoff Commissioner Dunn: I don't mind. I mean, it's up to you all. Follow the will of the Commission. Chair Gort: Well, P.1 [sic], it's Commissioner Carollo's item. Commissioner Sarnoff. Where's PH (Public Hearing) --? Mr. Mensah: Yeah, he's not here. Commissioner Dunn: PH -- Chair Gort: District 3. Mr. Mensah: PH.1. Chair Gort: Let's come back after lunch. Come back at 2: 30. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION STRONGLY OPPOSES ANY ACTIONS OR DISCUSSIONS BY MIAMI-DADE COUNTY RELATED TO THE FILLING OF THE FLORIDA EAST COAST RAILWAY DEEP WATER SLIP LOCATED IN BISCAYNE BAY ADJACENT TO THE AMERICAN AIRLINES ARENA; FURTHER DIRECTING THE CITY MANAGER TO TRANSMITA COPY OF THIS RESOLUTION TO THE HEREIN STATED OFFICIALS. 11-00620 Legislation.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Dunn II Absent: 2 - Commissioner(s) Carollo and Suarez R-11-0298 Chair Gort: RE.15. Commissioner Sarnoff. Mr. Chair, this is a resolution asking that the County cease and desist from attempting to fill in the Florida East Coast Railway deepwater slip, located on Biscayne Boulevard adjacent to the American Airlines Arena. My understanding -- and I'll defer to the City Attorney -- is that we own the bay bottom of that. Chair Gort: Yes. Commissioner Sarnoff. We have put in over $25 million in seawall improvements. We have put in bollards so that we could have, in addition to large ships -- but as you know, every two years, the great ship Eagle comes here and visits for about a week. Chair Gort: Yes. Commissioner Sarnoff. It's just a great opportunity. It's a great place to have a deepwater ship. A great opportunity. As you know, the Volvo series will be here, or I should say the Volvo race will be here. And this is just asking them to stop considering our property as their dumping ground. City ofMiami Page 75 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 RE.16 11-00621 City Commission Chair Gort: Okay. It's a motion by Commissioner Sarnoff. Commissioner Dunn: Second. Chair Gort: It's a second by Commissioner Dunn. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION RELATED TO ADMINISTRATIVE POLICY MANUAL POLICIES, AS MAY BE CREATED BY THE CITY MANAGER, DIRECTING THAT ANY ACTIONS OR DIRECTIONS DEVIATING FROM THE PUBLISHED ADMINISTRATIVE MANUAL POLICIES BY THE CITY MANAGER OR DESIGNEE(S) ARE REQUIRED TO BE IN WRITING, WITH NOTICE TO THE CITY COMMISSION, CLEARLY STATING THE DEVIATION. 11-00621 Legislation.pdf Motion by Commissioner Sarnoff, 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-11-0299 Chair Gort: Sixteen. RE.16, Administrative Policy Manual. Julie O. Bru (City Attorney): Mr. Chair, RE.16 was the direction that the Commission gave, that this -- there be a resolution that any deviation from an administrative policy, any APM (Administrative Policy Manual) that the Manager has published and if he's going to deviate from the text of the APM and its applicability, he would have to do so in writing, clearly stating why. That was just a direction that we had. Chair Gort: So people will understand, can you clarify what APM stands for? Ms. Bru: Administrative Policy -- Commissioner Sarnoff.. Manual. Ms. Bru: -- Manual. Chair Gort: Okay. Do we have an administrative policy manual that you have created, Mr. Manager? Johnny Martinez (City Manager): What was that? Chair Gort: Do you have an administrative -- APM that you have established or is there one established? Mr. Martinez: I just established two yesterday. Chair Gort: Okay. City ofMiami Page 76 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff.. Maybe -- and I'm not trying to defer things, Mr. Chair, but maybe we take this up at the same time as FR.4 and during Commissioner Carollo's discussion item so -- Chair Gort: No problem. Commissioner Sarnoff.. -- 'cause we could do all three things at one time. Chair Gort: Sure. Commissioner Sarnoff.. So let's table it 'til we get to that. [Later..] Chair Gort: Next is the internal audit. Commissioner Sarnoff.. Should we take up -- there was a resolution. Do we need to do the resolution as well? Remember there was a resolution that was patterned off of this. Do we still need to do that? Ms. Bru: It -- the resolution is really directing your Manager; that the Manager deviates from a published administrative policy. The deviation has to be clearly expressed in writing. Commissioner Sarnoff.. And the Commission -- does the Commission get noticed of the change? Ms. Bru: Well, then I guess we can add to it that with notice to the Commission. Commissioner Sarnoff.. So that takes away any verbal deviations from APMs? Chair Gort: Right. Commissioner Sarnoff.. And this creates your documentary trail, if you will, and that gets away with `I never said that in the bathroom; yes, you did; no, you didn't. " Commissioner Suarez: Yeah. Chair Gort: Okay. Is there a motion? Commissioner Suarez: You know -- Vice Chair Carollo: Didn't take the bait, though. Todd Hannon (Assistant City Clerk): Excuse me, Chair. Then we are currently discussing RE.16, correct? And you're asking for a motion on RE.16? Vice Chair Carollo: Correct. Mr. Hannon: Okay. Just for clarification. Thank you. Vice Chair Carollo: RE.16 and -- you know what? Let me verify just to make sure, but -- Commissioner Sarnoff.. It is RE.16. Chair Gort: Yes, it is RE.16. Commissioner Sarnoff.. I had written a note -- City ofMiami Page 77 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Yes, yes. Commissioner Sarnoff.. -- read this with FR.4. Vice Chair Carollo: Yes. Commissioner Sarnoff.. So I'm going to move -- I'm going to make a motion to approve RE -- Vice Chair Carollo: Second. Commissioner Sarnoff.. -- 16. Chair Gort: Moved by Commissioner -- Commissioner Sarnoff.. As amended. Chair Gort: -- Sarnoff, second by Vice Chairman Carollo -- Vice Chair Carollo: As amended. Chair Gort: -- as amended. It's been moved and second. Is any further discussion? Being none, all in favor, state it by saying aye." The Commission (Collectively): Aye. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: Five-minute recess? Chair Gort: Five minutes really? Vice Chair Carollo: Yeah, more like ten minutes. But yeah, five, ten minutes. Chair Gort: Okay. Vice Chair Carollo: It'll be -- thank you. Commissioner Dunn: I told you, I bought my dinner. RE.17 RESOLUTION 11-00623 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Attorney ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO ENTER INTO A SETTLEMENT WITH MIAMI-DADE COUNTY, IN THE CASE STYLED CITY OF MIAMI VS. MIAMI-DADE COUNTY, PENDING IN MIAMI-DADE COUNTY CIRCUIT COURT, CASE NO. 07-46851 CA 31; FURTHER AUTHORIZING THE CITY ATTORNEY AND THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE THE SETTLEMENT. 11-00623 Memo - Office of the City Attorney.pdf 11-00623 Legislation.pdf 11-00623 Exhibit 1.pdf City ofMiami Page 78 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, 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 RE.17 was deferred to the Commission Meeting scheduled for July 28, 2011. Chair Gort: RE.17. Commissioner Dunn: You deferred that one. Julie O. Bru (City Attorney): Yeah, this was deferred. Chair Gort: We deferred that. Yes. Eighteen. Commissioner Sarnoff. Mr. Chair, this is a resolution modifying and authorizing the City Manager to execute an amendment to the license agreement in substantially the form that has been attached to our agenda between the City ofMiami as a licensee and Brickell Flatiron, T,T C (Limited Liability Company), as the owner/developer. What this does is at the Brickell Flatiron site, which I think you know is South Miami Avenue and 10th -- this is -- finally, we're getting the Raymond Jungles Park. This is an approximate one acre -- I might be pushing it, but about a one -acre park that we're getting, in addition to the previous park that was on the -- I guess it would be the northeast quadrant on that very same triangular piece of property. This is -- this same group of people is equally the group of people that are giving us park space on 31st and 32ndAvenue on Biscayne Boulevard. That will probably not be designed by Raymond Jungles, but may be designed actually by Aniya (phonetic), which is the designer that's doing 1814 Brickell. So the City is about to get approximately three acres of extremely well-done, well-preserved parks, and that one will come back to us. Unfortunately, this has taken us almost two years of negotiation. Andl say unfortunately -- andl'm not going to blame the City andl'm not going to blame certainly Mr. Carter or -- maybe it's because it's one of its first. Maybe firsts take a long time. I apologize to your employer on behalf of the City, and hope that this is a template for everybody to move forward. When somebody wants to donate a park to the City of Miami, we should have a pretty good understanding that we should not have to charge them every fee attendant with putting up a large building when we 're not putting up a large building, and the deferral of those fees is the appropriate thing to do until and unless they put that large building up. So I would move RE.18. Commissioner Suarez: Second. Chair Gort: Okay, it's been moved and -- Commissioner Sarnoff, second by Commissioner Suarez. Any further discussion? Being none, all in favor, state it by saying aye." The Commission (Collectively): Aye. Chair Gort: Thank you. Sorry you had to wait so long. Iris Escarra: Thank you very much. Chair Gort: Great speech. Great presentation. Commissioner Sarnoff. Go back and tell your client what a job. Chair Gort: That's the best presentation you've done. Ms. Escarra: Thank you. City ofMiami Page 79 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Very good. Want to take five? Commissioner Sarnoff. Want to take five? Chair Gort: Yeah. Commissioner Sarnoff. Okay. Frank, you want to take five? Chair Gort: That's it. Commissioner Sarnoff. Are you ready? You want to take five? Vice Chair Carollo: Yeah. Commissioner Sarnoff. Okay. Vice Chair Carollo: Thank you. Yeah, we'll take five. Chair Gort: Yeah. Commissioner Sarnoff. Are we taking a real five or are we taking a --? Chair Gort: Five, five. Vice Chair Carollo: Yeah, five. RE.18 RESOLUTION 11-00581 District2- A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Commissioner Marc ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE AN David Sarnoff AMENDMENT TO THE LICENSE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI ("CITY" AS LICENSEE) AND BRICKELL FLATIRON LLC ("OWNER/DEVELOPER" AS LICENSOR), CLARIFYING TERMS IN THE ORIGINAL LICENSE AGREEMENT; AND DEFERRING SOLID WASTE AND IMPACT FEES. BC.1 11-00511 11-00581 Legislation.pdf 11-00581 Exhibit 1.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Suarez Absent: 2 - Commissioner(s) Carollo and Dunn II R-11-0283 RESOLUTION END OF RESOLUTIONS BOARDS AND COMMITTEES City ofMiami Page 80 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE ARTS AND ENTERTAINMENT COUNCIL FOR TERMS DESIGNATED HEREIN. APPOINTEES: 11-00511 Arts CCMemo.pdf 11-00511 Arts Current_Board_Members.pdf NOMINATED BY: Vice Chairman Frank Carollo Commissioner Francis Suarez Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.2 RESOLUTION 11-00228 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING A Clerk CERTAIN INDIVIDUAL AS A MEMBER OF THE AUDIT ADVISORY COMMITTEE FOR ATERM AS DESIGNATED HEREIN. BC.3 11-00229 Office of the City Clerk APPOINTEE: NOMINATED BY: Commissioner Francis Suarez 11-00228 Audit CCMemo.pdf 11-00228 Audit Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING CERTAIN INDIVIDUALS AS MEMBERS OF THE BAYFRONT PARK MANAGEMENT TRUST FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Commissioner Francis Suarez Commission -At -Large 11-00229 Bayfront CCMemo.pdf 11-00229 Bayfront Current_Board_Members.pdf City ofMiami Page 81 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.4 RESOLUTION 11-00557 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION CONFIRMING THE Clerk APPOINTMENT OF CERTAIN INDIVIDUALS AS MEMBERS OF THE CIVILIAN INVESTIGATIVE PANEL FOR TERMS AS DESIGNATED HEREIN. BC.5 11-00512 APPOINTEES: 11-00557 CIP CCMemo.pdf 11-00557 CIP Current_Board_Members.pdf 11-00557-Nominations. pdf NOMINATED BY: Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RESOLUTION Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE CODE ENFORCEMENT BOARD FOR TERMS AS DESIGNATED HEREIN. APPOI NTEES: (Alternate Member) (Alternate Member) NOMINATED BY: Commission -At -Large Commission -At -Large City ofMiami Page 82 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00512 CEB CCMemo.pdf 11-00512 CEB Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.6 RESOLUTION 11-00513 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE COMMISSION ON THE STATUS OF WOMEN FOR TERMS AS DESIGNATED HEREIN. BC.7 11-00514 APPOINTEES: 11-00513 CSW CCMemo.pdf 11-00513 CSW Current_Board_Members.pdf NOMINATED BY: Chairman Wifredo (Willy) Gort Vice Chairman Frank Carollo Vice Chairman Frank Carollo Commissioner Francis Suarez Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RESOLUTION Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE COMMUNITY RELATIONS BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Chairman Wifredo (Willy) Gort Vice Chairman Frank Carollo Vice Chairman Frank Carollo Commissioner Marc David Sarnoff Commissioner Francis Suarez Commissioner Francis Suarez City ofMiami Page 83 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00514 CRB CCMemo.pdf 11-00514 CRB Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.8 RESOLUTION 11-00545 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION WAIVING THE Clerk ATTENDANCE BY A FOUR -FIFTHS AFFIRMATIVE VOTE, AS IT RELATES TO CARLOS MORALES AS A MEMBER OF THE COMMUNITY RELATIONS BOARD. 11-00545 CRB Attendance Waiver CCMemo.pdf 11-00545 CRB waiver Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.9 RESOLUTION 11-00516 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE COMMUNITY TECHNOLOGY ADVISORY BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Mayor Tomas Regalado Vice Chairman Frank Carollo Commissioner Francis Suarez 11-00516 CTAB CCMemo.pdf 11-00516 CTAB Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.10 RESOLUTION 11-00517 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING CERTAIN Clerk INDIVIDUALS AS MEMBERS OF THE EQUAL OPPORTUNITY ADVISORY BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: City ofMiami Page 84 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 BC.11 11-00232 Office of the City Clerk Chairman Wifredo (Willy) Gort Vice Chairman Frank Carollo Vice Chairman Frank Carollo Commissioner Marc David Sarnoff AFSCME 1907 IAFF FOP 11-00517 EOA CCMemo.pdf 11-00517 EOACurrent_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION WAIVING THE TERM LIMIT BY A FIVE -FIVE UNANIMOUS AFFIRMATIVE VOTE, AS IT RELATES TO MIRIAM URRAAS A MEMBER OF THE EQUAL OPPORTUNITY ADVISORY BOARD. 11-00232 EOA Term Waiver CCMemo.pdf 11-00232 EOA Term Waiver Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.12 RESOLUTION 11-00448 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING A Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE FINANCE COMMITTEE FOR ATERM AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Chairman Wifredo (Willy) Gort Commissioner Francis Suarez City ofMiami Page 85 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00448 Finance CCMemo.pdf 11-00448 Finance Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.13 RESOLUTION 10-00766 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE HEALTH FACILITIES AUTHORITY BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Vice Chairman Frank Carollo Commissioner Francis Suarez Commissioner Richard Dunn II 10-00766 Health CCMemo.pdf 10-00766 Health Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.14 RESOLUTION 11-00233 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE HISTORIC AND ENVIRONMENTAL PRESERVATION BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES/CATEGORIES: NOMINATED BY: Vice Chairman Frank Carollo (Business/Finance/law - Category 6) Vice Chairman Frank Carollo (Architectural Historian - Category 3) Commissioner Francis Suarez (Architect - Category1) 11-00233 HEP CCMemo.pdf 11-00233 HEP Current_Board_Members.pdf 11-00233 List HEP applicants.pdf 11-00233 HEP Applications.pdf City ofMiami Page 86 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 BC.15 11-00518 Office of the City Clerk BC.16 11-00519 Office of the City Clerk BC.17 11-00520 Office of the City Clerk Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING CERTAIN INDIVIDUALS AS MEMBERS OF THE HOMELAND DEFENSE/NEIGHBORHOOD IMPROVEMENT BOND PROGRAM OVERSIGHT BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Vice Chairman Frank Carollo Commissioner Francis Suarez 11-00518 Homeland CCMemo.pdf 11-00518 Homeland Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING CERTAIN INDIVIDUALS AS MEMBERS OF THE MIAMI SPORTS AND EXHIBITION AUTHORITY FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Vice Chairman Frank Carollo Vice Chairman Frank Carollo 11-00519 MSEACCMemo.pdf 11-00519 MSEACurrent_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING A CERTAIN INDIVIDUAL AS A MEMBER OF THE NUISANCE ABATEMENT BOARD FOR ATERM AS DESIGNATED HEREIN. City ofMiami Page 87 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 APPOINTEE: NOMINATED BY: Vice Chairman Frank Carollo 11-00520 NAB CCMemo.pdf 11-00520 NAB Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.18 RESOLUTION 11-00368 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING A Clerk CERTAIN INDIVIDUAL AS MEMBER OF THE PARKS AND RECREATION ADVISORY BOARD FORATERM AS DESIGNATED HEREIN. APPOINTEE: NOMINATED BY: Vice Chairman Frank Carollo 11-00368 PRAB CCMemo.pdf 11-00368 PRAB Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.19 RESOLUTION 11-00250 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE URBAN DEVELOPMENT REVIEW BOARD (UDRB) FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Chairman Wifredo (Willy) Gort Vice Chairman Frank Carollo Vice Chairman Frank Carollo Commissioner Francis Suarez Commissioner Francis Suarez Commissioner Richard Dunn II City ofMiami Page 88 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00250 UDRB CCMemo.pdf 11-00250 UDRB Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II BC.20 RESOLUTION 10-00919 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE VIRGINIA KEY BEACH PARK TRUST FOR TERMS AS DESIGNATED HEREIN. BC.21 11-00521 Office of the City Clerk APPOINTEES: NOMINATED BY: Commissioner Francis Suarez Commission -At -Large 10-00919 Virginia Key CCMemo.pdf 10-00919 VKBPT Current_Board_Members.pdf Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING CERTAIN INDIVIDUALS AS MEMBERS OF THE WATERFRONT ADVISORY BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: 11-00521 WAB CCMemo.pdf 11-00521 WAB Current_Board_Members.pdf NOMINATED BY: Mayor Tomas Regalado Commissioner Francis Suarez Commissioner Francis Suarez Motion by Vice Chairman Carollo, seconded by Commissioner Sarnoff, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Dunn II END OF BOARDS AND COMMITTEES City ofMiami Page 89 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 DISCUSSION ITEMS DI.1 DISCUSSION ITEM 11-00502 Department of QUARTERLY UPDATE OF NON -REIMBURSABLE GRANT Finance EXPENDITURES FOR 3RD QUARTER FY 11. 11-00502 Summary Form.pdf DISCUSSED Diana Gomez (Director, Finance): Mr. Chair. Vice Chair Carollo: Thank you. Chair Gort: Yes. Ms. Gomez: IfI may do Discussion Item 1, which is nonreimbursable grant expenditures? Chair Gort: Go ahead. Ms. Gomez: Diana Gomez, Finance director. The -- this discussion item is the non -- the quarterly update of nonreimbursable grant expenditures for the third quarter of fiscal year 2011, which covers a period of April 1, 2011 through June 30, 2011. For this period there were two amount -- two grants that were deemed to have nonreimbursable grant expenditures. The first -- they were both from the NET (Neighborhood Enhancement Team) office. Both -- the first grant was Roots in the City grant in which $80, 000 was deemed to be nonreimbursable. This is for some landscaping work that was done in the Overtown area for which an agreement with the Miami -Dade County was never fully executed and, therefore, they are not going to reimburse us for those expenditures. Since meeting with your office, we have reached out to the CRA (Community Redevelopment Agency) and they have discussed with us that they will be willing to look at giving the City a grant in order to fund this $80, 000 in order to -- for not -- so that the City doesn't have to pay for it out of its general fund dollars. That item, I think, will have to be brought forth in front of the CRA board -- Chair Gort: Right. Ms. Gomez: -- in order to be fully executed. Chair Gort: Yes, sir. Commissioner Dunn: I think we can cut right through the chase on that item. Certainly, if this is something that was committed to and this is the wish of the County, who kind of governs, you know, our budget at the end of the day, I have no problems with taking that from the CRA. Chair Gort: Thank you, sir. Okay. Unidentified Speaker: Thank you. Chair Gort: Next one. Ms. Gomez: The other grant is the ACES (American Community Emergency Support) or AmeriCorps grant. This grant was a grant that provided funding for individual volunteers . The program that was being administered, there were three volunteers that were not -- did not actually do the work but yet, they were paid for a total of about $31, 000. This amount -- this City ofMiami Page 90 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 item is under prosecution by -- Haydee Wheeler (Director, NET): The United States of America. Ms. Gomez: Yeah. The FBI (Federal Bureau oflnvestigations). Ms. Wheeler: It's federal dollars. Ms. Gomez: Haydee Wheeler. Chair Gort: Excuse me. You are? Ms. Wheeler: Yes. Chair Gort: Excuse me. You are? Ms. Wheeler: I am Haydee Wheeler, director of the NET offices. I'm sorry that we have to report to this today. The ACES, which is the American Community Emergency Support grant, was awarded to NET for three years. It's a federal grant. It is administered by Volunteer Florida. Therefore, the case is a legal case and the case is United States versus the person that allegedly might have not used the funds correctly. Chair Gort: So we are trying to collect those funds? Ms. Wheeler: Thirty-one thousand dollars, correct. Chair Gort: Okay. Ms. Gomez: In the event that restitution is not granted to the City with this case, the NET's office general fund dollars will absorb the $32, 000. Chair Gort: So what do you need from us? Ms. Gomez: Nothing. Chair Gort: Okay. Ms. Wheeler: Thankyou. Chair Gort: Go to work. Go after them. Ms. Wheeler: Thankyou. Ms. Gomez: Thank you. Chair Gort: Thank you. DI.2 DISCUSSION ITEM 11-00583 Department of UPDATE ON UPCOMING BOND TRANSACTIONS. Finance 11-00583 Summary Form.pdf 11-00583-Submittal-Restructuring of Series 1987, 1995, 2002A, 2002C and 2009 Bonds.pdf City ofMiami Page 91 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 DISCUSSED Chair Gort: Yes, ma'am. I understand you -- Diana Gomez (Director, Finance): Discussion items 2 and 3, if that's okay. Discussion items 2 and 3 -- Chair Gort: Okay. Ms. Gomez: -- because we have outside individuals here. Chair Gort: All right. Ms. Gomez: DI I -- I'm sorry, DI2. Diana Gomez, Finance director. DI2 is a -- is an upcoming -- it's a discussion about upcoming bond transactions. In order to generate monies that can start to replenish the City's general fund diminished fund balances, the Administration recommends that the Series 1987, Series 1995, Series 2002A, and Series 2002C and Series 2009 bonds, which are backed by the City's covenant to budget and appropriate non ad -valorem revenues, be reconstructed. The restructuring of these bonds will provide cashflow savings totaling approximately $31.5 million over fiscal years 2012 through 2015. However, the restructuring will increase debt service costs from 2016 to 2026. Total additional debt service will be approximately $40.3 million over the life of the bonds. Final maturities, with the exception of the 1987 series bonds, will not be extended beyond their existing maturities with this restructuring. In the packet that had handed out to you, Exhibit shows the estimated cash flows for the restructuring transaction based on the interest rate market of 6/30/2011. The transaction would be done on a taxable and tax-exempt basis as the original bonds were issued both taxable and nontaxable. Exhibit B summarizes the various series of debt that will accomplish the restructuring. The Administration believes that the City Commission should accept this recommendation as this restructuring will provide cash flow improvements in the near term to replenish the general fund reserves. Should the will of the Commission be to move forward with this transaction, the item will be brought in front of the Finance Committee on July 25 and an authorizing resolution will be brought in front of the Commission for approval on the 28th agenda. Chair Gort: Okay, questions? Commissioner Sarnoff. I'll take it first, if you'd like. Chair Gort: Go ahead. Commissioner Sarnoff. Well, I appreciate you coming before this Commission and I'm sure giving us all briefings, and don't think I'm about to say anything to you today that didn't say to you in the briefing. To me this is exactly how the City ofMiami and the County has gotten itself into trouble. It is repackaging its debt. It is creating more financing. And all you're doing -- Does anybody remember Ronald Reagan? Sure, you do. Remember when he used to say Jimmy Carter created a window of vulnerability. I always thought that was a very visual depiction, so much so he won overwhelmingly. The City ofMiami today is suggesting that it create a window, and that window is an opportunity for us to get into a cashflow situation that will get us into an advantageous position through 2015. And then the window closes. And when that window closes, in theory, we will be in great economic times. Why? Because we better be because we're projecting that that happen. Andl don't know anyone here that doesn't think we've just lived through historic times. The only people that can ever say that they lived through anything like this is the Great Depression, and we came painfully close to getting there. I have no idea what 2015 will look like. Like the Mayor, I share in his vision that I think it's going to look great. I think there's going to be two major players here that's probably going to bring three more major players, but what if I'm wrong? What if we're all wrong? What if an event City ofMiami Page 92 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 occurs that was very similar to October 2008 where the stock market went from 14, 000 points to 6,000 points in six weeks? What if that happens again? Haven't we as Commissioners spent the money today and said to Commissioner Suarez's hopeful children and Commissioner Carollo's daughter, please pay for the mistake of this Commission? Isn't that what politicians do? Isn't that what bonding is? I mean, let me talk to some people here that are a little older than me 'cause my generation financed but my parents waited to buy the car, waited to have a down payment, never extended themselves too far, and yeah, they maybe didn't have exactly what my generation had, but you could compress, push on them, take away a lot of their salary, hurt them in compensation, but they were rock solid because they didn't owe very much money. Now my generation changed that, candidly, andl suspect Commissioner Suarez's generation equally enjoys that -- what is called leverage. Andl just question whether there's any wisdom for this Commission to create this window, this window of opportunity for five years and push the can down the road to another Commission. Now I know this is profound. I know this is principled andl know this is not getting into the minutia, andl will leave getting into the minutia to somebody better able than me, which is the Vice Chair. Andl could tell you that $163 million becomes $203 million, so there's 40 million extra dollars you're going to pay. Okay, time value use of money, in theory you're supposed to be able to take that money and develop it and make it into -- you're supposed to make more than $40 million with that money. I have yet to find an investment vehicle since 2008 that does that. I'd be hard-pressed to have an investment vehicle before that. But I -- the reason I'm told that we're doing this, when I really pushed Diana and she was very candid with me, is that we really need to do it for a cash flow basis. And I'm going to say something to this Commission, andl know it may upset Commissioner Suarez a little bit, but I'm not that interested in putting back the reserve account. My interest is this Commission needs to start operating this City on a cash flow basis. When we get back to what the financial integrity ordinance says we should be is when a number of things happen. When we get back to revenues that have residuals that continue to flow again, which is most likely ad valorems, a couple of other things as well, but equally it is, in time, returning money back to City employees that have been cash strapped for a number of years now. And my interest in putting the reserve back is not today and it's not tomorrow. And some people say, well, Commissioner, that's really going to harm your bonding ability. It didn't just harm our bonding ability very recently. Whether you bought insurance or not -- andl listened very candidly and very carefully when this Commission boasted about how we could have sold $200 million worth of debt, but we sold $70 million worth of debt. So obviously, whatever condition we're in right now with whatever reserve we have right now, there is an appetite for our debt. So I -- I'm not going to speak any longer on this 'cause I've taken up enough time and space. But I think it's this philosophy that really got -- I think that's the can that was kicked to us. And if we kick the can to somebody else, I just wonder if we're doing our fiduciary obligations by simply opening up a window and saying, hey, for the next five years, I can figure out this budget, but five years beyond there, you guys are on your own again. And then it looks like in the years -- in ten years, look out because here comes the big money. Thank you. Chair Gort: Thank you. Commissioner Suarez. Commissioner Suarez: Thank you, Mr. Chairman. I have a couple of questions 'cause I think this is a very good and healthy debate about something that we should talk about and struggle with like we have with a lot of other things and then finally, you know, make a decision that we all think is in the best interest of the residents. I am very concerned about the reserve account. I am. Because not so much -- well, first of all, we have a legal obligation to reestablish it. So I'm concerned about -- and we've talked before here about the fact that we ignore our own obligations, our own legal obligations. So I think I'm concerned that, number one, we don't take our own ordinance seriously, our own financial integrity ordinance seriously. That's the first reason why I'm concerned with it. The second reason why I'm concerned, probably more importantly is because I think we're in a very precarious financial position. Andl think you kind of alluded to it earlier, Commissioner Sarnoff, when you said that if we had a hurricane or something, a major event that was unpredictable, this City could be bankrupt, not saying it will City ofMiami Page 93 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 be. I'm saying it could be. It's a possibility. Andl'm not sure that I'm ready to turn over the government of the City ofMiami to the governor of the state of Florida. Andl'm not sure if there's anybody else here that is prepared to do that. When I analyzed this, you know, there are a million ways that you can get the reserves up. It takes very difficult decisions to get there. This isn't the only way. This may be one of the ways. There could be a variety of different ways, and I'm willing to do what it takes to get there. I've always been. One of the things I wanted to ask about this specific transaction, maybe you can shed some light on it, Diana. I think you mentioned, Ms. Gomez, that we were not expanding the maturity of the debt as currently -- as it currently stands? Ms. Gomez: The final maturities are not being extended, with the exception of the 1987 -- Commissioner Suarez: One series, yeah. Ms. Gomez: -- series, which is the James L. Knight Convention Center. Commissioner Suarez: Oh. So are we saving money because we are back loading it or are we saving money because we're getting a better rate -- we would be getting presumably a better rate Ms. Gomez: We're taking the -- Commissioner Suarez: -- than the other series? Ms. Gomez: -- principle payments that are due -- Commissioner Suarez: Right. Ms. Gomez: -- in the next couple of years and moving them to the back. Commissioner Suarez: So we're back loading it? Ms. Gomez: Yes. Commissioner Suarez: Exactly. Ms. Gomez: So that will -- Commissioner Suarez: Right. Ms. Gomez: -- provide savings in the first few years. Commissioner Suarez: Right. Ms. Gomez: But over the long term, you end up paying more. Commissioner Suarez: Right. We end up paying think, $3.6 million more according to your -- Ms. Gomez: That's present -- Commissioner Suarez: -- schedule. Ms. Gomez: -- value, but it's really $40 million over the life. Commissioner Suarez: Over the life. City ofMiami Page 94 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Gomez: It's $40 million. Commissioner Suarez: Yeah. I mean, look, at the end of the day, I mean -- you know, I wasn't here when we talked about the Marlins stadium and the discussion of the Marlins stadium, but I always kind of find it interesting that one of the things that was talked about at that time was the basis for the financing of the Marlins stadium, which was the convention and development tax revenue, and there was a lot of discussion -- I remember as a candidate watching the Commission meetings at that time -- as to whether there would be sufficient income to pay the debt from those --from that issuance, the debt service, and that that may fall back on the general fund, and there was a concern about that at the County level, at the City level. And you know, again, this is just a year or two into that process. But one of the things that's never been talked about, that's never been said is that actually the revenue stream, the income stream has far outpaced what was originally projected and so -- and from that perspective the income stream has far outperformed the debt service that was required to pay those bonds. And it's just a little thing that just never gets talked about. Later on other things get focused on having to do with that deal versus the financial component, the financing, the underpinning of the deal. I do believe that the City will get better and is already getting better. If you look at the trend, last year when you consider the Value Adjustment Board's adjustments, we lost 20 percent of value, 21 percent of value. This year we're up, you know, 1 percent, essentially .7 percent. So I think -- andl think, like the Mayor said, we have other big projects coming online. I think from what I've seen and read, there's other projects in the pipeline, so I do think that the City is improving, but I do think we need to get our reserves up. I think that's just financially prudent. And don't want to be here if we lose control of this government. I mean, I think that would be a very -- to me, that would be a tragedy. Chair Gort: Yes, sir. Vice Chair Carollo: Thank you, Mr. Chairman. I agree with Commissioner Suarez, that we need to address our reserves. As a matter offact, that's one of my discussion items today. However, I don't know if this is the right vehicle. I will admit, I haven't had sufficient time to go over this. As a matter offact, we didn't even meet. I actually thought this discussion on the bonds -- because I didn't receive any backup. All received was, you know, D3.4 or whatever bond -- I thought we were going to be discussing the bond offering -from yesterday or the day before. Ms. Gomez: I had sent this same package to your office last week so -- through your -- Vice Chair Carollo: I didn't see it. If it doesn't come in the backup with this, then realistically, it's a substitution or so forth and, you know, the five-day rule and all that good stuff. The bottom line is I do know enough about this where I'm comfortable saying that right now I'm not sure if this is the right vehicle. That kicking the can down the road is a concern to me. However, I do think that in the near future we do have to see how to make sure that our reserves come back to where they need to be. Thank you. Chair Gort: Yes, sir. Commissioner Dunn: Basically, I'm in agreement with Commissioner Suarez. I believe we need to be concerned about the reserves. Andl think the question for me is basically do we really have an option based on what they've already told us in the bond market, that we need to replenish our reserves. So I'm pretty much -- if we have an option. If we don't, then it's, for me, pretty academic. Ms. Gomez: In terms of the financial integrity ordinance, it does say that by September 30, 2011, we need to replenish our reserves up to an amount of $94 million. It's not going to happen by that -- from that -- this is not going to get us there. This was a step in the right direction. It is City ofMiami Page 95 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 why I'm making the recommendation to move in this direction. One recommendation that will also be coming forward to this Commission is to relook at the financial integrity ordinance and perhaps look at extending the amount of time that is given to the Administration to get that replenishment of fund balance up, extending it from the current two years to maybe five or seven years in order to give us more time so that we are in compliance with our own ordinance. A lot of governments, a lot of municipalities are doing that because they have found themselves in the same position where they cannot make it in this economy. So that's something that's going to be coming up in September. If we do not do this transaction, it's fine. We -- there's no real need for the transaction. This transaction, again, was a step to start replenishing fund balance with the idea that all the savings generated from this transaction will be placed in fund balance and not used for anything else. Commissioner Suarez: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Suarez: I just have a quick question. Our -- based on how we just went to market, what last week? Ms. Gomez: This week. Commissioner Suarez: I'm sorry, this week. Based on that performance, would this be an interest rate savings overall or would you -- I mean, are you paying a little more interest, a little less interest? What's the interest rate difference -- differential? Ms. Gomez: In this -- to do this transaction would not affect, per se, the rates of upcoming transactions. Commissioner Suarez: No, no. That's not what I meant. Ms. Gomez: I'm sorry. Commissioner Suarez: What I meant was based on the last transaction, where we got a sense for what our risk rate is -- Ms. Gomez: Right, right. Commissioner Suarez: -- are we lowering our interest rate from, you know, when -- if you were to combine and blend all the interest rates of the prior -- I think you guys understand the question that I'm asking. Ms. Gomez: Yes. Commissioner Suarez: You guys are kind of going to the podium. If we were to blend in all the rates from all the other debt into this -- 'cause I know we're obviously -- we're back loading some principle. Ms. Gomez: Right. Commissioner Suarez: But are we actually saving money on the interest rate or not at all? Ms. Gomez: It's -- we don't know what the interest rates would be at the day that we go to market. We can only assume it based on what we just finished going to market in. This -- these deals -- this deal -- this restructuring is both taxable and nontaxable. Taxable deals are more expensive. They have a higher interest rate. City ofMiami Page 96 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Suarez: Right. Ms. Gomez: Nontaxable have a lower interest rate. I can assume, based on our performance yesterday, that we'd get -- if everything stays the same and we get insurance again, that the nontaxable piece will sell around the same rate that we sold yes -- two days ago. The taxable deal will sell at about a 7.2 percent blended rate. So it's not -- you know, it's very hard to tell. Commissioner Suarez: Could you get that informa --? Just -- I'm just -- I'm curious to know whether -- or maybe Mr. Marquez knows whether when you take into account -- Ms. Gomez: No. Again, I can only run it as of today. Commissioner Suarez: Right. Ms. Gomez: So -- Commissioner Suarez: I think the assumption being, you know, whatever the market bore on the nontaxable side and then on the taxable side, your estimate, and then that in comparison to what we're paying right now in interest. Is it a savings? Is it not a savings? Ms. Gomez: A savings against what? I'm not clear on -- Commissioner Suarez: You're refinancing. Okay -- Ms. Gomez: Yes. Commissioner Suarez: -- for example, in your house, when you're refinancing, you either are paying more interest or you're paying less interest in your refinancing. Ms. Gomez: We're going to end up paying more over the life of the transaction. Commissioner Suarez: That's not the question. Chair Gort: Forty million dollars. Commissioner Suarez: You always pay more over the life of the transaction. If you -- Ms. Gomez: I'm sorry. Commissioner Suarez: -- refinance -- if you've paid ten years and you refinance and it's a 30-year -- Commissioner Sarnoff. I think his question is this. If he were to combine -- Commissioner Suarez: With the interest rate. Commissioner Sarnoff. -- all of the interest rates together and he was -- and his house mortgage rate was 5.5 percent, is he going -from a 5.5 percent rate to a 4 percent rate? Edward Marquez: Generally speaking, your interest rates are going up with the -- Chair Gort: Excuse me. Mr. Marquez: -- transaction because -- City ofMiami Page 97 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Excuse me, sir. You are? Mr. Marquez: I'm sorry. I'm Edward Marquez. I'm a financial advisor. I'm with the -- Chair Gort: Thank you. Mr. Marquez: -- firm of First Southwest Company. Generally speaking, the refunding transaction has higher interest rates because of the fact that we 're now extending it out in time. We're refunding items that are coming due within the next couple of years and they, by nature will have smaller -- you know, lower interest rates. All told, it's a composite -- the composite interest rates that we're looking at right now on a tax -- the tax-exempt piece is 5.82 percent. We just did the transaction recently at 5.65 percent, so there's a -- it's a little bit higher. The taxable piece of this is 7.58 percent. Commissioner Suarez: Right. Mr. Marquez: And blended together, you're looking at a composite blended rate of 7.12 percent. Commissioner Suarez: And what's the blended rate of the debt that we're refinancing? Mr. Marquez: That I don't have here. Commissioner Suarez: That's what I'd like to know because -- Mr. Marquez: But it's really not -- Commissioner Suarez: -- there's two ways -- I'm sorry for interrupting you. There's two ways. There's extending maturities, of which I think we're extending one of our maturity dates of one of the series of bonds, so we're obviously going to be paying more interest on that extended maturity -- Mr. Marquez: Right. Commissioner Suarez: -- overall in the aggregate. And then you have the actual rate of interest, which is a risk rate. So is our risk rate going -- you understand what I'm saying? I'm trying to compare apples to apples. Mr. Marquez: The problem with that type of analysis is that these bonds were issued at different points in time so it -- Commissioner Suarez: I got you. So it's hard to just compare -- Mr. Marquez: It's really not an apple to apple comparison. Commissioner Suarez: I got you. I got it. Chair Gort: Okay. My understanding is for those numbers to work, it has to be all of them. Ms. Gomez: For it to be this amount of -- Chair Gort: You cannot select -- Ms. Gomez: -- savings, yes. All five transact -- all five bond deals would be done. City ofMiami Page 98 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: They have to be done. Ms. Gomez: Right. Chair Gort: Okay. Any further discussion? Ms. Gomez: If may -- Chair Gort: Yes. Ms. Gomez: -- request the will of the Commission. Shouldl continue to move forward on this transaction and have Legal work on a resolution, meeting with the Finance Committee, having the financial advisor, you know, work on more or -- ? 'Cause I'm getting the indication that it's not something that is supported. Chair Gort: My understanding, the feedback that I'm getting -- correct me if I'm wrong -- the Commission at this time, they're not in support of -- Ms. Gomez: Okay. Chair Gort: -- expanding the debt to other years and -- Ms. Gomez: Okay. Chair Gort: That's my perception. Commissioner Suarez: I mean, my perception is this is a discussion item, just like we had a discussion item -- and we've actually talked about this refinancing even before -- Chair Gort: Right. Commissioner Suarez: -- we discussed the transaction that we approved -- Ms. Gomez: Right. Commissioner Suarez: -- and refinanced. We talked about it. And that was the famous Larry Springs [sic] $18 million savings where we combined all these supposed savings to get to $18 million. But you know, again, I can go either way on this. As, you know, long as we have to get to a point at some point and address our reserves. I -- whether we do it this way or another way, it makes no difference to me. But I don't know if the Commission wants to even entertain this anymore or not? It doesn't -- Chair Gort: Is there any cost in you continuing to look at it? Ms. Gomez: There is. There's costs of the attorney's time. There's cost of the financial advisors, staff time to prepare the resolution. Okay. Chair Gort: Okey-doke. Thank you. Vice Chair Carollo: That's DI.2. DI.3 DISCUSSION ITEM 11-00396 Department of FINANCIAL STATEMENT PRESENTATION BY THE EXTERNAL AUDITORS Finance FOR THE YEAR ENDED SEPTEMBER 30, 2010. City ofMiami Page 99 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00396 Summary Form.pdf 11-00396-Submittal-Post Closing Entries by Fund-Septermber 30, 2010.pdf 11-00396-Submittal-Financial Statement Presentation. pdf DISCUSSED Direction by Vice Chair Carollo to the Administration to perfrom an analysis of the cost savings associated with the creation of the Department ofAudio/Visual Broadcasting Operations, further directing that these cost savings be explained to the City Commission. Direction by Chair Gort to the Administration for the City Manager to examine the process that allowed for the Department ofAudio/Visual Broadcasting Operations to be created without City Commission approval, further directing that all future changes to departments identified within the City ofMiami Organizational Chart include an analysis explaining the economic benefit/impact upon the City of Miami's budget. Chair Gort: You have the -- Vice Chair Carollo: And DLL Chair Gort: Yes. We're going to talk about the audit, the auditor's schedule. Vice Chair Carollo: That's DI (Discussion) -- Are you going to speak about DI.1 or DL 3? Diana Gomez (Director, Finance): DL 3. Vice Chair Carollo: The audit -- Ms. Gomez: And then DL 1, if it's okay. DL 3. Diana Gomez, Finance director. DI 3 is a financial statement presentation for the fiscal year ended September 30, 2010. The City has issued its Comprehensive Annual Financial Report for the yearend 2010. We received an unqualified opinion on that report. We did issue it on time on March 31, 2011, and we have submitted it to the GFOA's (Government Finance Officers Association's) Excellence in Reporting Certificate program. We anticipate to get that certificate this year. We have received it over the past several years, and we anticipate to get it again. The comprehensive annual financial statements included a section called Management's Discussion Analysis. This summarizes the financial information contained within the CAFR (Comprehensive Annual Financial Report). If you look at page 15 of the CAFR, it talks about the balance sheet of the City. It is focused on the general fund, which are the fund level financials. Some highlights of the financial statements of the balance sheet are assets for the year total $74.2 million, liabilities for the year total $60.7 million, and fund balance which we spoke about a little bit earlier totaled $13.4 million. Of that fund balance we have separate categories offund balance. Reserved, which means the amounts are restricted for or reserved for certain purposes, and unreserved, unreserved designated and unreserved undesignated. The reserve fund balance includes prepaids of $2.8 million and long-term due from other funds, $6.4 million. IfI may, I'll -- we can talk about the fund balance, the question that Commissioner Sarnoff asked earlier to compare prior year long-term due from other funds to current year's. In fiscal year 2009, the long-term due from other funds was $12.6 million. That $12.6 million was made up of $7.8 million of FEMA-related amounts and $4.8 million of UASI (Urban Areas Security Initiative). In the current year, that amount has reduced to $6.4 million. Of the $6.4 million, 4.6 relates to FEMA and 1.7 relates to UASI Of the 4.6 of FEMA, we have collected $3 million since 9/30. So the -- that amount is only 1.6 roughly, close to $2 million that is still outstand -- that is still related to that balance. As we receive the $3 million, it does release the reserved amount from the reserved category and it can move down to the unreserved category. City ofMiami Page 100 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff.. So briefly, summarize your FEMA issue. Ms. Gomez: Summarize the FEMA issue. We still have amounts from FEMA outstanding. The total deficit of FEMA at 9/30/2010 was $8.1 million. We have collected $3 million of that, so we have $5.1 million still outstanding with FEMA. Those amounts have been requested for reimbursement and at this point we anticipate we will eventually get it. We have not received notice that we will not receive it. Commissioner Sarnoff.. Is everything --? Has the City done everything in its power, has it dotted every i, crossed every t, has it submitted every aspect of every document that FEMA requires? Ms. Gomez: I cannot answer that question. I was told earlier today that we have submitted all the packages, but it is not my office that does so, so I cannot speak for that. But I have been told that, yes, they have submitted what they need to submit in order to receive the reimbursement. Commissioner Sarnoff.. And how long is --? Well, that's fair enough. Okay. Ms. Gomez: Okay. Chair Gort: Let me ask a question. My understanding is in one of the efficiencies that the audit showed up, it was the need to centralize the refunding of the grants. Do we have anyone where the different grants can report to and they can make sure they're complying with the requirements? Ms. Gomez: We're going to get to the findings in a minute. That's what the auditors are going to present. However, we do not currently have such a person. We did in the past, but that person is not -- Chair Gort: Okay. Ms. Gomez: -- there's no such position now. But we're going to get there. I'm going to finish with the financial statement highlights, ifI may. Again, financial -- so that's the fund balance. The remainder of the fund balance is unreserved fund balance, the $4 million roughly, which is unreserved. We did not meet our financial integrity ordinance fund balance requirements for fiscal year 2010. That requirements is $95.6 million. The requirement as of 2011, sorry, will be $93.4 million, and so, you know, we do anticipate to be out of compliance with that ordinance. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes. Vice Chair Carollo: Real quick. Can -- Ms. Gomez, can you explain what are the strategic initiatives and the management initiatives? Ms. Gomez: These are categories that have been on the City's books for many years since the financial -- the Oversight Board was here, the Blue Ribbon initiatives that assigned these dollars. They haven't been taken off so to speak, or hasn't been un-appropriated as such, so it's continued to be carried on. This year because of the changes coming along with GASB (Governmental Accounting Standards Board) 54, we're going to recommend releasing them from those older categories. It's just an administrative step that has not been done at this point. Vice Chair Carollo: And that's why I'm asking 'cause, you know -- and I know with GASB 54, it's going to change now and -- City ofMiami Page 101 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Gomez: Yes. Vice Chair Carollo: -- we're going to have to go to the point of committed and so forth and -- Ms. Gomez: Yes. Vice Chair Carollo: -- the highest level in, you know, the government and so forth so -- Okay, thank you. Ms. Gomez: Statement of revenues, expenditures and changes in fund balance on page 17 is pretty much the operating statement of the City. It showed revenues for fiscal year totaled 452 million, which was down approximately 20 million from the prior year. Expenditures totaled 518 million, up approximately 8 million from the prior year. Other financing sources, transfers in and out netted out to $40 million. Fund balance decreased by $26.5 million. Decrease in fund balance is due primarily to shortfall in budgeted revenues and expenditures in excess of original budgets. Ending fund balance for the general fund totaled $13.442 million. Statement of net assets of the government -wide financial statements presented in accordance with GASB 34, it presents the financials in full accrual basis of accounting. It includes all fixed assets of the City, includes significant long-term obligations, such as claims payable, compensated absence, and it reflects all liabilities of the City. Net assets total $534.7 million. The statement of activities again is on the government -wide basis. It's GASB 34. If you look at the revenues and expenditures, it's a look at the -- as the operating on a government -wide status. Charges for service totaled 139.4 million. Operating grants totaled 73.1 million. Capital grants totaled 27 million. Investment earnings totaled 3.2 million. And primary government expenditures totaled $759.2 million. Looking ahead to fiscal year 2011, as of May 2011, projections are currently reporting fiscal year 2011 deficit of $4.9 million due primarily to revenue shortfalls in the areas of property tax, fines and forfeitures, and other revenues. Management's initiatives are currently underway to reduce the deficit by cutting expenditures for the remainder of the fiscal year. And as Mirtha, the Budget director, has told you, you know, the goal is to end the fiscal year with a zero use offund balance. Looking forward to 2011, we are going to have to report our fund balance in accordance with GASB 54. This statement enhances the usefulness offund balance information by providing clear fund balance classifications that can be more consistently applied in clarifying the existing governmental fund type definitions. The City is reviewing its current fund balance classifications as well as existing fund types to ensure compliance with the standard, and we expect to be fully in compliance with the standard for our 2011 financial statements. And I'm going to turn it over to Donnovan Maginley. He's a partner with McGladrey & Pullen, our external auditors, to talk a little bit more about the findings and recommendations. Donnovan Maginley: Thank you, Diana. Mr. Chair, Commissioners. My name is Donnovan Maginley. I'm with McGladrey & Pullen. I'm here with my colleague, (UNINTET,TIGIBT,F) Harris. First, indulge me. Let me just say a few things in terms of what our professional standards require us to say. We were engaged to and have performed an audit of the City's financial statements for the year ended September 30, 2011. We have issued our report, as Diana indicated. It's an unqualified report. It is the cleanest level and the highest level of assurance that we can provide as an external auditor. During the course of the audit, we have full access to management. I want to let you know that we had no limitations in terms of our discussions with management, their staff and to the records that were requested. We had no disagreements with management as to the application offinancial information or the application of accounting pronouncements. We were -- All adjustments that were significant to be reflected in the financial statements were recorded, in our opinion. We have evaluated management's estimates and judgments. As you may know, the compilation of a financial statement of this magnitude requires a great degree of estimates and judgment. We have maker evaluations as relates to those things and have concurred that they're reasonable and, in most cases, consistently applied. There are no accounting transactions that we were aware of that there is City ofMiami Page 102 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 not professional literature to support. So there's no -- there are no accounting issues that are out there that (UNINTELLIGIBLE) does not support. In addition to the audit of the financial statements, we also perform an audit -- what we call a single audit, which is the audit of the grants, both state and federal, and have issued that report, which should be in your package. That report based on the findings that we noted resulted in a qualified opinion. I've had the privilege to meet with all the Commissioners and the staff and basically we have issued, as I mentioned, a qualified opinion. In that report, we also have findings that are being categorized as both material weaknesses and what we consider to be significant deficiencies. In addition to this report, we've also issued a management letter which is in accordance with the rules of the Auditor General of the state of Florida, which requires us to attest to certain factors as it relates to the City. On page -- starting on page 14 off your -- of what we call the single audit report, there's a synopsis of the findings that we noted and the categories in terms of what the severity of the findings as it relates to the results of the audit. I won't go into each of these findings. And what I would like to do is obviously turn it over to you for any questions that you may have and we can address each of these findings. Thank you. Chair Gort: Okay. Thank you. Yes, sir. Vice Chair Carollo: Mr. Chairman. Chair Gort: Go ahead. Vice Chair Carollo: Thank you. Mr. Maginley, I want to start off by pointing out to page 83 in the CAFR. Mr. Maginley: Eighty-three? Vice Chair Carollo: Yes. And want to start off by -- you know, as accountant, we pay attention to details and so forth. And something that I'm seeing that -- well, we'll start -- we'll continue with discussion then. Mr. Maginley: Okay. Vice Chair Carollo: I think everyone will see. It clearly says here, I think towards the bottom, the paragraph before the last one, budgets are monitored at varying levels of classification detail. However, budgetary control is legally maintained at the fund level, except for the general fund, which is maintained at the department level. Mr. Maginley: Okay. Vice Chair Carollo: Okay. If you go to page 81 and we look at the department level, I see the Office of Communications, correct? Mr. Maginley: Correct, okay. Vice Chair Carollo: Okay. Where it was budgeted at 873,000; actual was 820, 000, correct? Mr. Maginley: That's correct. Yep. Vice Chair Carollo: Can we go to Roman numeral, I believe is either 6 or 11. Roman numeral 11, the table of organization. Mr. Maginley: Yep. Vice Chair Carollo: If you look at the, you could call it a chain, all the way to your right. It's City ofMiami Page 103 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 actually broken up into two departments. But by the way, I would imagine this was the representation of management to you, correct? Mr. Maginley: That's correct. Vice Chair Carollo: If you look at that chain, you actually see two departments, not one. You see the Department of Communications and the Department ofAudiovisual Broadcasting and Operations. Mr. Maginley: Correct, okay. Vice Chair Carollo: When did the City Commission approve these two departments 'cause the only one that can approve these department is the City Commission? So when did the City -- and by the way, I know this is the representation of management to you. It's not like you audited each one of these categories or so forth. Mr. Maginley: Correct. Vice Chair Carollo: But I guess my question is actually not directed to you. It's directed to the management or to the Manager. Why, if in the table of organization, we've broken up Communications and Audiovisual/Broadcasting, it's not reflected in page 81 where it's only one department? And when did the City Commission approve that? Chair Gort: Yes, ma'am. Ms. Gomez: The organizational chart that's included in the financial statements is part of the transmittal letter. The transmittal letters as ofMarch 31 -- this was the organizational chart, the latest organizational chart of the City as ofMarch 31, 2011. It was not necessarily the departments that existed as of 9/30/2010 as why it's not budgeted as such in that schedule on page 81. Vice Chair Carollo: Well, it's just not consistent with departmental because if you look at page 81, it clearly stipulates one department, and in the table of organization it shows two departments, so -- Ms. Gomez: Again, it's -- Vice Chair Carollo: -- you know. Ms. Gomez: -- as ofMarch 31, the time that we're writing the transmittal letter and presenting the financial statements, that is the organizational chart that is in effect at that point in time, not necessarily the organizational chart as of 9/30. Vice Chair Carollo: Do the auditors agree with that? Ms. Gomez: I don't -- Mr. Maginley: Well, to answer your question, this is one of the -- probably the few errors in the document that we don't even audit, to be honest with you, and that's part of our -- in our report, we actually indicate that this is not subject to our audit, which is the introductory section here. So I can't attest as to the validity of this organizational chart. Vice Chair Carollo: Madam City Attorney, the only one who can approve a new department is the City Commission, correct? City ofMiami Page 104 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Julie O. Bru (City Attorney): Departments can be established only by the City Commission and by ordinance of the City Commission. Andl believe that this Commission did adopt an ordinance establishing the Department of Audiovisual. Vice Chair Carollo: I actually -- my memory is different from what you're saying, and I know because I requested certain information. And as a matter offact, I have the history on how it was continued, deferred, continued, and if you give me a second -- andl don't remember when this Commission approved that department. As a matter offact, 11/18/2010, it was continued. On 12/16/2010, it was passed on first reading. Andl remember thatl made the statement -- and I have the minutes -- that I joked with ex -manager Migoya that will pass it on first reading and then have further discussion on second reading. On 1/13, it was deferred. On 1/27, it was continued. On 2/24, it was deferred. On 3/10, it was continued. On 4/14 of this year, it was withdrawn. So when did the -- when did this Commission approve the new department? Ms. Bru: Commissioner, I'm asking someone to get that ordinance for me. So if it exists, I'll have it for you in a second. Vice Chair Carollo: Thank you. Alice Bravo (Assistant City Manager/Chief of Infrastructure): I'd like to have Jennifer Ramirez from the Budget Department address that as well. Jennifer Ramirez (Budget Coordinator): Jennifer Ramirez, Budget Department. When we passed budget last year, when we adopted it, in the resolution we did present the two departments separately. But you are correct, the ordinance was presented to Commission, but it was deferred and it has not been passed. Vice Chair Carollo: Right. So in essence, this Commission has never created a new department. Ms. Ramirez: Right. It was done via the resolution, but it has not been ratified via ordinance, sir. Correct. Vice Chair Carollo: And in the original budget, it was one department. It was not two departments, the September whatever. Andl have it here, too. I could bring it out so -- Ms. Ramirez: You're correct. Vice Chair Carollo: Again, I'm seeing a pattern of bypassing the Commission andl guess the Administration or someone doing whatever they want and we're bypassing the Commission, so -- I mean, this has to stop. And I'm pointing it out because, you know, sometimes it's monies, sometimes it's checks, sometimes it's departments, but the bottom line is somewhere in the controls it's either being overridden or -- the bottom line is something that should have come to Commission has not. Chair Gort: Okay, any answer? Vice Chair Carollo: And by the way, the reason why I'm so certain is because I'm still waiting for the response because what was always said was that the reason for breaking up one department into two is because it was going to be more efficient and we were going to save money. Andl saidl want to see how we're saving money. As we know, for the most part -- as a matter offact, our new County mayor says we're going to go from 45 departments to 25 departments. We're the only municipality that thinks that creating more departments will be more efficient and will save money. So I'm still waiting to see how that savings is going to happen, and therefore we have never approved this. It has never passed as an ordinance. City ofMiami Page 105 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Johnny Martinez (City Manager): Yeah. I'll look into the justification of why two departments is cheaper than one department or the explanation. Vice Chair Carollo: You know, and we're already presenting it to our auditors like it's a done deal. We have two separate departments and the truth of the matter is, no, it's never been approved by this Commission. I'll go a step further. I remember so vividly because I also requested as far as other agencies, what was the criteria for other agencies. Andl asked why the Liberty City Trust wasn't another agency, the Virginia Key Park Trust, the Coconut Grove BID (Business Improvement District), and I'm still waiting for an answer. Chair Gort: When were those questions presented? Vice Chair Carollo: I will have to see 'cause I have the history and I have to look in the minutes, but believe me, they were presented. Chair Gort: No, I understand that, and I'm sure you did. I don't know if it was presented when Manager Martinez was there or was it somebody else as Manager. Vice Chair Carollo: Well, let me give you a history. November 18, 2010, it was continued. December 16, 2010, it was passed on first reading, like I said. That was a -- sort of like a gift to Migoya. I said, listen, I'll get it on second reading, don't worry, you can leave quietly. And as a matter of fact, if you read the minutes, it's there. January 13, it was deferred. January 13, 2011, it was deferred. January 27, 2011, it was continued. February 24, 2011, it was deferred. March 10, 2011, it was continued. April 14, 2011, it was withdrawn. Chair Gort: Okay. Mr. Manager, as you can see, these are items that are taking place before you taken it over. I think you need to look into this and really look into all the issues that we 're bringing up and make sure you -- I understand you're trying to bring the organization chart and change it a little bit, andl want you to look into this. Also, whenever you do any of the department changes, show the economic benefit and economic impact. Okay? Vice Chair Carollo: With that said, if we can move on. Chair Gort: Go ahead. Vice Chair Carollo: I want to touch upon some of the findings. Mr. Maginley: Sure. Vice Chair Carollo: Especially some of the same ones that were findings in the last year's report. Mr. Maginley: Okay. Vice Chair Carollo: And to start off with the bank reconciliation. You know, I'm concerned -- one thing that caught my eye is that, as stated here, once the auditor indicated that the amount should be reclassified to FY (Fiscal Year) '10, we concurred, reclassified the amount to year-end. Why does that worry me? Because I think our Finance Department should be more qualified to know what are reconciliations. And you had to wait for the auditor. I -- you know, I understand some of this is year-end cutoffs, but the truth of the matter is I don't think we should have -- I truly believe we should not have a finding in bank reconciliation. We should not have any findings. And you know, maybe I'm overly optimistic, but we definitely shouldn't have this finding, especially one that we had in the previous year. Chair Gort: Yes, ma'am. City ofMiami Page 106 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Gomez: This particular item is not a repeat from the prior year. Yes, in the prior year there was a bank reconciliation finding, but it was not the same type of finding. It was a different circumstance. In this current year in this finding, yes, the auditors had recommended that we reclassify those amounts to the previous fiscal year, but in the year before we had always done the process the same way every year. It was this year that it was noted as a finding. It hadn't been noted in the past. We felt that the way that we were doing it was satisfactory. Vice Chair Carollo: The problem I have with that is that the same auditors audited it last year, and you're saying they didn't have a finding on it last year and they have it this year? I mean, could you -- could there be some explanation? Because I could see if, you know, we actually did change auditors and maybe they -- they're looking at it from a different point of view and that's why -- you know, later we'll talk about afresh set of eyes and so forth, but the bottom line is it was the same auditor so -- Ms. Gomez: Perhaps there were not as many or as material in the previous years so they did not -- it was not something that it was noteworthy, could have been. I don't have that information in front of me, but I know that we do record some of the adjusting entries after the month, just in terms of timing in reconciling items. Maybe in this year the amount was considered significant enough to rise to a level of a finding. Mr. Maginley: That's correct. That -- I don't have the facts in terms of -- but I think Diana may be right. In terms of the prior year, the extent of what the finding was did not rise to a material amount. This year it did. Obviously, the practice is not one that we condone and we obviously -- which resulted in a recommendation. This year clearly it must have risen to a material amount for us to put it to this -- Vice Chair Carollo: Material. Mr. Maginley: -- level. Vice Chair Carollo: Moving on to the second one, recording of accruals and accounts payable. Okay, this is another one that we had last year. Do you remember what I asked you last year when this came about? Ms. Gomez: Yes. Vice Chair Carollo: And if you do, then you're going to know why I'm going there. What did I ask you last year with this, Ms. Gomez? Not to put you in the spot, but just -- Ms. Gomez: From what I can recall is to advise you of which departments had given us journal entry requests past the year-end closing deadline. Vice Chair Carollo: Exactly, because -- And do you remember what you told me? Ms. Gomez: I don't. Vice Chair Carollo: You didn't have the answer. Ms. Gomez: At that time. Vice Chair Carollo: At that time, andl never received the answer. And the problem with that is -- andl -- and I'm going on memory, but I'm pretty sure that lstated, listen, this is not to point the finger at anyone. This is not to embarrass anyone. But the bottom line is in order to fix the problem, we need to identify where the problem is. Since we never received the departments that were late, once again, we have the same finding. Ms. Gomez, do you know who the departments City ofMiami Page 107 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 are? And again, this is not to embarrass anyone. This is to know that this is serious. We shouldn't have this finding again. We should have known from the last audit report who were those departments and this year really been on top of them to make sure that they get the information in time. Ms. Gomez: In the current year -- what I just handed out to you is a listing of all the journal entries that we call post closing journal entries. Post closing entries are entries that are received by Finance after we close the books. Not all of them are the accruals. These are just all the journal entries that are needed at the end of the year. The -- as you can see, there's different departments on the list. The first summary sheet is the -- by fund, but the fund pretty much tells you what department is involved. And the back -- the second package is a detail of all the actual journal entries. So it's various departments that have post closing entries. The -- a lot of the entries -- or some of the entries, to be fair, cannot be done until we get into the audit, so to say that they're late I think is not a correct statement because some information we do not have until much later as the audit gets started. Some of the entries are for financial statement presentation only. For example, you'll see a very large item on there for general long-term debt account group. It's an account group journal entry that has to be done, but it's not done until all the test work is done on the capital assets of the City before we can actually -- I'm sorry, on all the bond test work and all the investment -- debt investments of the City so -- in order for us to make -- be able to book that entry. So that wouldn't be considered a late journal entry, per se. It's just we cannot do it until later in the audit period. For the most part, the -- any of the journal entries that have a description, for instance, to -- hold on, I'm sorry. For instance, journal entries that are there to reclass expenditures or to record expenditures, things like that, are ones that are necessary, are post closing entries. Vice Chair Carollo: And Ms. Gomez, again, first of all, it's a material weakness, so it's an issue. Second of all, I'm not looking at pointing the finger and embarrassing anybody, but we need to know the departments. I'm seeing here fund description. I could see departments and so forth, and I'm looking at solving this issue. I think it should have been solved last year and I don't want to see this next year, so -- Are you telling me that we are always going to have a finding in this? Is that what you're telling me? Ms. Gomez: No. I don't know that we're always going have a finding in it. However, I know that we're always going to have post closing entries after we have closed the books by nature of the way the audit is conducted. I think that the finding stems from the fact that there are numerous amounts of accruals, expenditures that should have been recorded as of 9/30 but had not been because they just had not been turned over to the Finance Department for payment, and that is my understanding of what the finding really relates -- Mr. Maginley: That's correct. Ms. Gomez: -- as opposed to just in general journal entries. What -- Vice Chair Carollo: Right, and the department should have -- Ms. Gomez: Right. Vice Chair Carollo: -- turned them over -- Ms. Gomez: Right. Vice Chair Carollo: -- to Finance. Ms. Gomez: Right. And the issue is -- City ofMiami Page 108 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Right. Ms. Gomez: -- that it's very decentralized and departments do have their operations and in order to get it to us on time. Sometimes we don't get them on time and that is the issue, and so when -- sometimes when the auditors find it during their search for unrecorded liabilities is why it becomes an issue. Chair Gort: Let me ask a question. I recall you sent out notice to the departments and to ourself [sic] telling us when you're closing the books and you need to have all the information by certain date. Now my understanding, ifI recall correct and I'm not -- have as good memory as the Vice Chairman, but I recall that we made a statement that if any one department did not come in on time, there should be some kind of penalty to it. Andl recall there was two individuals that had money coming from the City ofMiami and we held them for two months before they got the funds. In other words, the -- what we want to hear is -- I understand there's a lot of recommendations that they're going to be doing on these deficiencies and my understanding is you respond to all deficiencies, that you will implement them. And -- Ms. Gomez: The City's response is that, you know, we are obviously working towards making sure that we get the information timely in order to not have this happen again. Again, the Finance Department does put that notice out every year. It comes out in July -- you'll be seeing it very soon -- in order to prepare for each year-end. We do request it of the departments. We put it out two and three times, if not more, as we get closer to that deadline, and if we don't get the information, I don't know that it exists so I can't possibly record it. What in terms of the penalty will happen? I don't know what -- I don't have -- I don't know. Vice Chair Carollo: Mr. Chairman, ifI may. Chair Gort: Yes. Vice Chair Carollo: Andl am not trying to blame the Finance Department 'cause I know you put your notices out and so forth, but that's why I want to know what departments did not turn them in on time so that we could fix this problem for next year because I know you're doing your due diligence, you're getting the notices out. I think we've all seen them, and that's why last year at this time I asked which were those departments, and that's why this year again I'm asking which are those departments because I have a feeling if we knew which were those departments last year, it would not occur this year again or at least we'd be a lot more vigilant and remind them, listen, I don't think we want another finding, and that's my point with that. Ms. Gomez: Right. And again, if you look at the list that I gave you -- Vice Chair Carollo: It's -- Ms. Gomez: -- the items that say -- Vice Chair Carollo: Right. Ms. Gomez: -- you know, to record a transaction, an invoice, to record an invoice, those are the ones that are late. I can scrub it a little bit cleaner to try to just leave only those -- Vice Chair Carollo: I understand. Ms. Gomez: -- transactions and not all post closing entries. Vice Chair Carollo: I understand. City ofMiami Page 109 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Gomez: In that way we can move forward with it for this year. Vice Chair Carollo: Thank you, Ms. Gomez. Moving on to the payroll process -- processing, I'm sorry. Mr. Maginley: Yes. Vice Chair Carollo: I mean, clearly, someone should be reviewing the exception report. We need to ensure that any employee that's compensated is compensated only when, you know, it's money that's earned. I don't know if the department head needs to follow up more or what's going on, but you know, this is a finding that shouldn't have happened. Could you explain any procedures that's going to implemented so this doesn't occur again? Ms. Gomez: Payroll is entered by each department. The departmental liaisons enter the time and attendance of each of their respective employees. That time and attendance record goes to the department director for review and approval or the department director's designee. The department director is responsible for reviewing and approving those transactions. If it gets approved, it goes over to Payroll. The issue is is that we have certain deadlines. We have to pay our employees by a certain time and we have to start processing the payroll at a certain time in order to make the pay date, the scheduled pay date. So at a certain time, andl believe it's Monday of the pay week at 5 p.m., if the department director has not -- or designee has not gone in to review and approve the time of those individuals, the payroll system will automatically pull in the hours that were submitted by the time clerk, and those -- and it will go -- and it will be automatically approved. Vice Chair Carollo: Right. Ms. Gomez: And then the individ -- in this way the individual employee will get paid regardless of whether or not -- Vice Chair Carollo: Understood. Ms. Gomez: -- something was done. So the idea is -- sometimes it happens because of timing and a lot of directors do go back in after the fact and review -- Vice Chair Carollo: And that's -- Ms. Gomez: -- and make sure it gets done. Vice Chair Carollo: -- my point. Ms. Gomez: Yes. Vice Chair Carollo: The exception report. Ms. Gomez: But the idea is that it should happen before that deadline of 5 p.m. Monday or -- I'm not sure exactly -- I don't know if it's noon Monday or 5 p.m. I think it's 5 p.m. Monday of the pay week. It should happen at the time that it's happening so that everything comes across as approved. Vice Chair Carollo: And that was my point, you know, that the department heads should be looking at the exception report and so forth to be more vigilant. That was my point. Moving on to the filing of grant reimbursements. Okay, let me go to -- give me a second. Mr. Maginley: Sure. City ofMiami Page 110 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: My understanding, one of the recommendations from your -- in reading your report, it was to try to centralize the reimbursement of grants. You have different departments that set it up, but somehow there should be a central point where all that come together. Mr. Maginley: That's a best practice that I would definitely recommend. It puts it more on the arms of someone who can oversee the process much clearer and be more on top of it, to use your words. Chair Gort: In other words, each one of the -- the grantor or the grantees have their own process what they doing, but we need someone to make sure that they work with them -- Mr. Maginley: That's correct. Chair Gort: -- and try to help them to make sure they get on line. That's the only way we can be reimbursed on time. Mr. Maginley: That's the sim -- in the simplest terms, that's correct. Chair Gort: Now I know some of the departments have done quite a lot of work on it. I know Fire Department has been able to get some of the funds grant back and we need that to be expedite. Sorry about that. Vice Chair Carollo: No problem, Mr. Chairman. This is one thatl think has been touched upon a little bit today already, and once again, I want to state the importance of this finding. It's quite a lot of millions of dollars. As a matter of fact, so much so that this is one that I would even like the Fire Department to come up and state how they are going to -- and not to pick on anyone, but if you look at -- you know, on page 15th [sic], they have a negative fund balance and they have 9.1 million in (UNINTELLIGIBLE) revenue, so the majority is from Fire. So not to pick on any one person, but I would like Fire to come before us and let us know what they're doing in order to make sure that this not -- does not continue. This is a finding -from last year also. And my intention is to make sure that we are en route to fixing the problem so this, you know, does not continue. And by the way, when I met with the auditors, we spoke about this. I think we both were in agreement that Fire is the majority of it. And you know, I ask you if you actually had spoken to Fire and so forth to see -- and what I'm trying to do is I want to gauge what you believe is what they're doing and so forth and would that fix the problem. And want to really start tackling this. I think Commissioner Sarnoff was actually seeking the same thing. And again, it's not to put anyone on the spot or anything. I just want to make sure that what you all are envisioning to fixing the problem is what they're seeing that, yes, this is how we're going to fix the problem and make sure that we come to some consensus. Fire Chief Maurice Kemp: Okay. Maurice Kemp, Fire chief. We have made significant progress in the management of UASI (Urban Areas Security Initiative) grant as it has matured, and the federal regulations have changed over the years. Speaking to the item specifically, as of 9/30/2010, the outstanding balance of 9.6 million. Vice Chair Carollo: Right. Fire Chief Kemp: Since then we brought in 5.1 million. And as of 6/30/2011, the balance is 4.4 million so that shows significant progress. And I'm going to ask Chief Joyce, who is the emergency manager who -- whose division manager this is to give you a overview of what we've done with more specifics, and then I'll welcome input from the auditor. Vice Chair Carollo: Thank you, chief. Allen Joyce: Allen Joyce, emergency manager, assistant fire chief. With regards to the backlog, City ofMiami Page 111 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 and that's what caused a lot of these issues with these findings. UASI started in 2003. We had an additional funding in '04/'05 and consecutive years since then. What did not take place when the funding started coming down from the federal government to address our risk and to buy the equipment and provide the training to reduce the risk to the City ofMiami, a financial structure for this was not put into place to properly manage and reconcile these grant awards so that we could close them out and get reimbursements back in a timely manner. Approximately, about 18 months ago we came to City Administration and said we really need to address these issues, and City Administration agreed with us and worked with us to provide additional bodies that were funded by the grant to help clear out this backlog. But if you go back and look at the backlog, it was significant. It involved numerous grant years of UASI. And so it took a while to put in process these -- put in place these processes. And the snapshot is what they looked at -- what the auditors looked at is last year's fiscal year snapshot, which we agree was behind. What we also agree is that over the past three months we brought in 2.7 million in UASI dollars. In the past six months, $5 million from UASI in reimbursements. So we're making significant headway. We still have a backlog we're clearing out. Our initial push was the 2005 UASI grant year was closing as of September of 2010. We gave significant push to close out that grant. It was a $15.8 million grant. We gave significant reconciliation push to that. So at the end of the day, we collected 99.99 percent of what we could from that grant. We left $500 on the table out of $15.8 million, so -- but we had that backlog. In addition to that, we had retro requirements that the state of Florida, who is monitored by DHS, Department of Homeland Security, for the FEMA (Federal Emergency and Management Agency) grant. They put on retro requirements onto us to go back and comply with. Also, we had a backlog of doing environmental historical protection forms that were needed for this grant. And we had a backlog of adequately documenting all the inventory, all the equipment that we had purchased, and being able to inventory that. With all those backlogs, we made a major effort in clearing that up so we could close out the '05. We're right now at the end -- at this end of this month, we will have closed out the '06. We anticipate within the next -- by the October 1, to get in another $3 million from the UASI close-out of the fiscal year of the UASI grant 2006. So looking at the snapshot that goes back to last year, we agree there was a backlog. We've made significant progress. And our goal is to get out of that backlog. We haven't arrived a hundred percent, but we have the additional staffing, we have put in the additional processes to address that, and we made significant headway. Andl think just by looking at the outstanding reimbursement amounts, you can see how they've come down significantly. So we're heading in the right direction. And we do agree with the timeliness issue, and that the outstanding reimbursement and to bring it down. But we would also say we left $500 on the table out of a $5.8 million 2005 UASI grant, so -- and that's our goal, is to leave zero to minimal on the table for that. Chair Gort: Okay. Commissioner Sarnoff. Chief. Chair Gort: Yes. Commissioner Sarnoff. I apologize, Mr. Chair. Chief my understanding the way UASI first work was the City ofMiami was a recipient for it and we were fronting money for the other cities, correct? Mr. Joyce: Yes, sir. Well, initially, we were not. However, it's my understanding that after a couple years into the program, an audit finding suggested and recommended that we start fronting the money to the sub -grantees that we deal with. Commissioner Sarnoff. When did we stop the process of granting money to other cities? Mr. Joyce: Last year we began the discussion on it, and approximately, right around September of last year is when we came to a total halt of fronting the money to the sub -grantees. Our City ofMiami Page 112 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 understanding of it -- and we dealt with the Finance Department and the City Manager's office at the time -- was we have memos of understanding in place with our sub -grantees. Our sub -grantees agreed to abide by the FEMA regulations. And with that in place, they make their purchases; they pass on their reimbursement packages to us. We then review those reimbursement packages, but it's a far better financial stake to send those financial packages to the State and allow them to approve them and send us the reimbursement because the purchase has already been taken place. Money has been committed -- money has been paid out by the sub -grantees. So there is money on the table. And they have signed the MOAs (Memorandum of Agreement) with the City ofMiami. So basically, we've had the money spent. Once the State sends us back the money, then we reimburse the sub -grantee. But we did not want to have jeopardy where we pay the sub -grantee first before the State pays us because what if a retro requirement came down from DHS? What if there were something that was missed? And then the State says, no, we're not going to give you that money. That burden should be on the sub -grantee who has signed the MOA that says they will abide by those FEMA guidelines. Commissioner Sarnoff.. And that occurred September 30, 2010? Mr. Joyce: That's when we stopped it all. This fiscal year we no longer practice fronting the money to the sub -grantees. Commissioner Sarnoff.. Okay. So you said a moment ago that you're up to '06, right? Mr. Joyce: Excuse me? Commissioner Sarnoff.. I think you said you're up to '06 grants. Mr. Joyce: We're closing out the '06. Commissioner Sarnoff.. Closing out '06. Mr. Joyce: We're spending on the '06. The '07, the '08, and the '09 grants are open, but -- Commissioner Sarnoff.. So those are -- Mr. Joyce: -- we've closed them out. Commissioner Sarnoff.. -- the grants then that we fronted the money for other municipalities? Mr. Joyce: For the '06, plus before. It was the previous grant years. But for the '06 and maybe a little of the '07. The '08s and the '09s are much more newer grants and so their packages hadn't come into us yet, so we did not front the money to them. Commissioner Sarnoff.. All right. So you're left with '06 and '07 of other municipalities' money that you fronted? Mr. Joyce: Some of '07, not -- Commissioner Sarnoff.. Some of '07. Mr. Joyce: Yes, sir. Commissioner Sarnoff.. Okay. Mr. Joyce: Minimal of '07. City ofMiami Page 113 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. And do you have the requisite manpower now to get those done? Mr. Joyce: Yes, sir, we do. Commissioner Sarnoff. Okay. Chair Gort: My question is, I bet you, now that they have to wait to get their money, you get your reports from them a lot faster now. Mr. Joyce: Excuse me; say that again. Chair Gort: That now that you have that regulation that they don't get paid until they submit their reports, I'm sure they get it to you a lot faster now. Mr. Joyce: What happens is that it does put the obligation on them to have the package complete correctly and submitted to us in a proper manner. And if there's any delays, they are in a position of being much more eager to resolve the -- Chair Gort: Right. Mr. Joyce: -- whatever the situation is. Chair Gort: That's the incentive. Thank you. Commissioner Dunn: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Dunn: Speaking along those lines -- andl want to thank both my colleagues, Vice Chairman Carollo and Commissioner Sarnoff -- I'm a little bit confused because in the recommendation from the auditor, I think it's about the third paragraph from the bottom of page 26, basically says we recommend that personnel administering the grant program comply with the City's established process whereby qualfing expenditures are incurred and paid for prior to requesting reimbursement from the grantor. Andl remember that last year we directed the -- not you, Mr. Manager -- the Manager -- the City Manager to stop doing the very thing that is now being recommended by the auditor because it will put us in a quagmire, as we stated, trying to chase money down. And this exposes the City to the financial risk of the State rejecting, as you've already articulated. So I just wanted to find out, you know, where are we on that? Because I know we had directed the previous Manager, and just want to make sure that we're consistent with that and not end up doing the same thing or repeating the same practices. I know this is a -- one of the recommendations, but I just want a little clarity on that, not on your -- from the auditor. Mr. Maginley: The page that you alluded to, this is a different program. This is not the Fire program. Commissioner Dunn: Pardon me. Mr. Maginley: This -- Commissioner Dunn: Well, it's Home -- Mr. Maginley: Oh, okay. Commissioner Dunn: -- Land Security grant. City ofMiami Page 114 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Maginley: I got you. Commissioner Dunn: Page 26, about the third paragraph from the bottom, where it says -- Mr. Maginley: This recommendation, obviously, it's -- unfortunately, it's per the federal regulation. This is the compliance requirement that's mandated in order for the operation of the program. So this is not something that we subjected ourselves into or saying that this is what should be done. This is per the compliance requirement as per the agreement between the City and the program. So this -- Commissioner Dunn: So we're governed by that. That's what -- Mr. Maginley: Your -- exactly. Commissioner Dunn: -- but -- okay, but now just -- my question, though -- it almost, to me, chases us -- puts us, meaning the City, in a financial risk. Mr. Maginley: It potentially does. And I think -- I can't speak in terms of the grantor as to why they -- the motivation is one could speculate that they want to make sure that the sub -grantee -- Commissioner Dunn: I'm sorry; I can't hear. Mr. Maginley: I can't speak to what the motivation is, the grantor as to why they mandated this governance, but -- except for the fact that we can speculate that they didn't want the sub -grantee to be out there -- I mean, I guess they want it to be funded much quicker from a -- I guess a larger unit, which would be the City ofMiami. Commissioner Dunn: Yes. Chair Gort: Chief. Chief Kemp: It is our contention that we are following the City's process. And we also contend that money has been expended; that the sub -grantee is an extension of us because of the memorandum of agreement that we have with that individual. And furthermore, a policy decision has been made by the City, so that became the City's process, and the auditor recommended we follow our process, so I feel we are following our process. Chair Gort: Okay. Vice Chair Carollo: You're good? Chair Gort: Yes, sir. Vice Chair Carollo: You're good? Commissioner Dunn: Thank you. Vice Chair Carollo: Let's move on to -- thank you, chief -- the capital asset. I think if -- it's somewhat self-explanatory, andl want to direct this to the Manager. Mr. Manager, do you think it's possible that in this current year we could set up a team and start doing inventory of all the City assets? The last thing that I want is someone to start walking out with assets and we don't even know about it. So is it possible that, you know, we could start doing inventory? I don't want to read it in a blog or in the newspaper that, you know, people are walking out; they have a warehouse full of our assets and we don't even know about it. City ofMiami Page 115 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Martinez: Yeah. Andl don't know what the process that we have. I know other places that I've worked, they have bar codes and they scan them and that type of thing, and we do an annual inventory of all our assets with the bar codes and we reconcile and that type of stuff. What's the process we have? Diana Gomez (Director, Finance): On an annual basis, the Finance Department does submit to every single department a listing of all the assets that have been recorded as being as part of their department, and we do do these counts every year. We send a listing to all the departments and we say please verify the assets that you have on file. If you -- or in your location. We have liaisons in each department that assist with this process. We have not had an actual company come in and do a physical inventory of everything. It's very costly and very time-consuming, so we just haven't done one of those in quite some time, I would say, at least five years. If I'm -- yeah, about five years that we haven't done one of those. It costs to do a -- to have a company come in and do it, so that's why we haven't -- you know, the budget has not allowed for -- had much room for such an expenditure. So what we are doing is on an annual basis, we do do internal inventory counts of all the City's fixed assets, asking departments to veri, to add, delete any assets that are not there. And we do tag each asset that meets the requirements with a bar code -type sticker. So we are -- we do do that on an annual basis. The finding is more having to do with getting the schedules done timely and not -- and having adjustments to the schedules. Capital assets is one of those areas that is not of greatest importance in terms of putting the financial statements together and so it's something that is left towards the end of the audit process and, therefore, sometimes it does take some -- take a little bit longer time to get it done. Mr. Martinez: Diana. Chair Gort: My question is any time we do any purchasing, it's recorded by the Finance Department and it's recorded to the department where that purchase was made. Ms. Gomez: That is correct. If it is an asset that it meets the requirements, we will record it at that time in the fixed assets system. Chair Gort: Right. And that assets is being tagged. Do you have a centralized system where all those tags go? Ms. Gomez: We do have -- yes, we have the fixed asset module where -- again, as we purchase the item, we do put it into the financial -- to the fixed asset system, and then we do send tags out to the department at some point. I think it's monthly, maybe quarterly that we actually send the tags out for the newly purchased items. Chair Gort: So the responsibility of the director of the department -- Ms. Gomez: Departmental lia -- Chair Gort: -- to make sure that he has the -- all the assets that belong to his department. Ms. Gomez: That the actual asset gets tagged. Yes, we do send them out to the departmental liaisons for them to tag the actual physical asset. We do not have the manpower to go out and tag all the assets. Chair Gort: Gotcha. Okay. Mayor Tomas Regalado: Chairman. Chair Gort: Yes. City ofMiami Page 116 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mayor Regalado: Just a note on that. Through the Finance Department and through the Arts and Entertainment Council volunteers, for the first time ever in the City ofMiami we're doing an art pieces inventory. Andl know that the Finance Department has given support to all the volunteers of the Arts and Entertainment Council that have gone out to every place in the City where the City keeps like, you know, paintings and sculptures and all that, and that has been tagged. Andl think, Diana, the inventory will be done --I don't know. But it's been done with volunteers from the Arts and Entertainment Council. And we're surprised to find so many art pieces throughout the City. I think that Diana can -- Vice Chair Carollo: That was my point, Mr. Mayor, that if that hasn't been done. And it's not just -- Mayor Regalado: It has never been done before. Vice Chair Carollo: -- and not just art pieces; just assets altogether. Mayor Regalado: No. I understand. Vice Chair Carollo: You know, people are going to be walking out with our assets or they have been, and you know, next thing you know -- the last thingl want is some warehouse to be found in a blog or so forth full of our assets and no one knows about it. Mayor Regalado: Andl know that Diana's office is keeping the information because it have never been done before. People would have a painting in their office and it's not theirs; it's the City. And so we're -- if you see over there in City Hall, you see a little tag in every painting or thing and sculptures. Andl think -- I don't know when we'll be finished with that, but think it's almost done, I think. Ms. Gomez: That is correct. We did underway that -- get that project underway at the end of May, and with the help of the volunteers we were able to identify all the works of art in the City. A lot of them do not meet the threshold to be capitalized as a fixed asset and recorded as a fixed asset. Vice Chair Carollo: What's our threshold, a thousand? Ms. Gomez: A thousand dollars and more than one year of useful life. Sometimes the problem with works of art is that they are donated so they are not purchased so we won't know about it through the accounts payable system, and there's no way for us to know about it unless we were told that that item has actually part -- is now been given to the City. So this process that we did with these volunteers did actually help us in get that information, and we should be finalize that for this physical year and for sure and get all those assets on the books if they actually meet the threshold. Chair Gort: Okay. Thank you. Vice Chair Carollo: Thank you. Moving on to excessive expenditures over appropriations. I'm just going to read the cause. The City did not amend the individual fund budgets to avoid exceeding budgetary authorizations. What caught my eye with this is the fund names. Two of those fund names were two of the component units out of the three last year that turned in their audit reports late and, you know, I don't -- and once again, there's just another issue -- Chair Gort: The same -- Vice Chair Carollo: -- so you know, there's another issue. So again -- and, you know, I don't City ofMiami Page 117 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 have to tell you. You read here, you know, the City agrees with the finding. And see the correction [sic] actions that you're going to take. Just -- you know, let's make sure that, you know, this gets solved so next year we don't have a finding. Chair Gort: May I. I'd like to give you a suggestion. After this meeting, I think all those people that were late, a letter should be written by the Manager letting them know that next year we don't want to see that. Vice Chair Carollo: Moving on to the -- a management letter comment, which is slightly different, with regards to the pension plans. Now the issue with the pension plans, as I believe the City noted, that the City's ability to make meaningful changes to the plans are controlled by long-standing court order known as the Gates settlement which resulted from a lawsuit filed by employees against the City in the late 1970s. So I think we've dealt with this a little bit last year. Again, you know, we do have somewhat of a obstacle with the Gates settlement. And you know, like I said, it's a management letter comment. I don't know how much to actually add or not or so forth, so -- Chair Gort: Well, I can tell you from past experience that this is something that we -- in sitting down and talking to the unions, we've been able to amend that Gate [sic] case and we've been able to -- been very favorable to the City, and that's why we need to continue to work together as a team. Vice Chair Carollo: The actuary reports. Actually, this is one that we had never seen. It's a management letter comment, but it's one that we had never seen. I actually consulted with a few CPAs and they had never seen something like this either. I'll read the condition. The actuary report obtained by the City did not refer to and include the assumptions, methodologies, procedures, and other relevant data and analysis that were relied upon to determine the estimates of loss and loss adjustments, expense, reserves for the City's self-insurance coverages. For example, workmen's comp, automobile liability, police/professional liability, and other liability. In order to evaluate the reasonableness and consistency of the actuarial estimates, we had to obtain supplemental information from the actuary and perform independent analysis. This is a concern to me because Risk Management has one of the largest expenses, budgets. It's not the largest, but it's one of the largest. At the same time, I know when we first start talking about budgets, there were issues with regards to the estimates that they had and so forth. And when we're seeing that, you know, in their estimates, they didn't have the assumptions, methodologies, procedures. You know, it's troubling. It really is. That's actually why I have it as a discussion item because the truth of the matter is, it's a lot of money and we need to make sure that we know exactly what we have and we can rely, you know, on their numbers. I'm not saying we're not relying right now. But you know, some of the stuff that the auditors did not have before them, I think should have definitely have been there and not had to go after to, you know, request and receive. At the same time, you know -- and you all remember. We were in the executive sessions, and the last piece of the puzzle was the insurance. There's a lot of employees that are very unhappy with the insurance. I know it was the last minute where there was really not much for us to do. And if we would try to tackle it, it would just set everything off and go into chaos. But that's one area that I said, you know, we're going to look at it a lot more this year. We're going to make sure that before it's too late, we start looking at it, and that's why I have it as a discussion item so the director of Risk Management could, you know, address that issue, especially when -- hey, listen, there's no secret. I think you all have seen me long enough and you know that I'm about accountability. A Commission meeting ago or two, you know, that director came before us and asked us for up to $150, 000 for a consulting fee. Well, I want to make sure that I'm getting my money's worth. So we'll discuss that, you know, as a discussion item. But again, it's something thatl wanted to point out that, you know, it was a concern. Chair Gort: Well, I think it's going to be a concern for all of us. We make our decision based on the information we get from the actuary, so -- City ofMiami Page 118 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Exactly. And that's my -- Chair Gort: -- we got to make sure we got the right information. Vice Chair Carollo: Exactly, exactly, exactly, and that's exactly my point. We've -- Chair Gort: Okay. Vice Chair Carollo: -- spoken about the reserves already; I don't think we need -- Chair Gort: Yes. Vice Chair Carollo: -- to continue with that, password settings and so forth. That's pretty much for the management letter. I do want -- I do have a couple of questions, something that we spoke about. (UNINTET,TIGIBT,F), I was asking you the questions, even though I knew the answers, but I'll ask them for the record. Mr. Maginley: Sure. Vice Chair Carollo: With regards to turnover, especially executive level, is it a concern, the instability? Mr. Maginley: I guess, yeah. I mean, I think, intuitively, anything -- when you have a brain drain from an organization or from anything, there is institutional knowledge that leaves the institution and then that does -- there's risk associated with that, and so the answer, really, precisely, yes. Vice Chair Carollo: Yes. And -- I mean, it's obvious. And you know I'm asking the question, even though I know the answer. So there has been instability with turnover ratio and so forth? Mr. Maginley: Yeah. I mean, that's something that we don't necessarily comment specifically on, but clearly -- Vice Chair Carollo: I understand. Mr. Maginley: -- when we assess our risk, we look to see and I'm sure other outside entities that look to the City looks -- look at what the turnover is as it relates to upper management and stuff like that as to assess how risky of an organization this is. Vice Chair Carollo: Thank you. My last question is going to be this Commission approved and agreed upon procedures for CIP. Do you know when that is going to happen? Is that with these same auditors, which I believe it is? You know what, it's something) didn't ask at that time and I'm going to ask now. What were the agreed upon procedures that the City asked for? Could you elaborate on that? When should we expect to get that report? Mr. Maginley: We had some discussions with management about this. We have not fine-tuned the procedures specifically as how it would meet the objective. We're still trying to assess what the real objective is. And instead of -- Vice Chair Carollo: Exactly. Mr. Maginley: -- trying to go in and spend a lot of time and bill the City, we have not articulated precisely what procedures would meet those objectives. It's a bit -- what we were told or what we were asked of was really not orthodox. And we have not yet been able to articulate what City ofMiami Page 119 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 specifically is needed or what should be done. Usually within an agreed upon procedures management has to define the procedures for us. Vice Chair Carollo: Exactly. Mr. Maginley: And we can't -- unfortunately, we can't define them and do it ourselves. So with - - and with consultation with management, we were still unable to even give them some guidance because very honest with you, I don't know how you would craft certain procedures to meet what - - I think what this board would need. Vice Chair Carollo: And that's exactly why I'm asking, and I'm actually following up 'cause I know this Commission actually approved an amount for that. Andl would think, at least am, andl would think every Commissioner here is expecting some type of result or report sooner rather than later, at least was -- I actually thought it was going to be presented, you know, at the same time as the auditor, you know, with a few weeks of difference. But then, you know, as -- and as I looked it, I saw, hey, it's an agreed upon procedures, andl was thinking what were the agreed upon procedures. What exactly have we asked for 'cause I'm interested, you know. So, again, I'm following up on that because, you know, I've made it no secret. The financial state of the City is of you know, great importance to me andl think it should be for all. Mr. Maginley: Yeah. Chair Gort: Thank you. Yes, sir. Ms. Gomez: In terms of the agreed upon procedures, I think that -- something that went back several months ago, even with former City Manager Carlos Migoya and the former CFO (Chief Financial Officer). I don't think that those procedures were ever clearly identified, andl, to be honest, don't know exactly what this Commission would want of that process. I have not been able to articulate anything to the auditors as to what exactly we want to do. We have not really engaged for that. I know that the CIP Department, as well as my department, has been looking at the capital project balances and looking at reconciling those balances on an ongoing basis. We have to do such for GASB 54 and things like that. I don't know what exactly is wanted so it's very difficult for me to even have them start something. Vice Chair Carollo: I understand. But then here's another point that I'm bringing up. If you're not really sure, why was it brought to this Commission and we allocated funding for it? Ms. Gomez: Because -- Vice Chair Carollo: And you're saying, you know -- back to Mr. Migoya, that's six, seven months ago, so it's like is anybody following up? I know I am because I'm -- Ms. Gomez: Right. Vice Chair Carollo: -- extremely concerned. I think I've demonstrated it. But think the Administration should be following up also. Ms. Gomez: Again, we had the need to come in front of the Commission to request funding for the audit, I believe it was. So in -- that's -- and -- as well as other audits, audits of the Children's Trust, audit of some other programs, so it -- Vice Chair Carollo: I was --I remember. Ms. Gomez: -- was a matter of getting that administrative step done, having the authorization there. Whether or not we actually do the engagement or what the result of the engagement is, City ofMiami Page 120 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 we're not going to spend the money if we don't do anything. There has been some talk and some high-level discussions with the auditors. Andl know the CFO did have some high-level discussions with the auditors before he left, but I don't know that it was ever fully pinned down. And honestly, I have not had the opportunity to work on it. I've been working on a bunch of other things andl have not been able to get to that. Vice Chair Carollo: Okay. Let's just follow up in the next few weeks and see exactly what are we going to do or not or -- you know, at least we need to discuss it -- Ms. Gomez: Right. Vice Chair Carollo: -- because it's there. And at least was under the impression that would be receiving a report soon. And now that I'm digging into it a little bit more, I'm saying, well, wait a second; what did the City even ask because I don't -- I'm not sure what the City asked. And that's where we're at. And at the very least, I think someone from the Administration should have followed up with this Commission and stated where we 're at. Ms. Gomez: From my recollection, it was a recommendation of that former City Manager, and he wanted detailed testing of the capital projects balances, but -- it's easy -- that's a theory. But as the auditor said, it's -- what -- how can you test it? You have to get to a point to test something. What do you want the end result to be? What are you looking to perform procedures on; that we are following our process and procedures; that we are properly appropriating things? There are so many different things and that -- it could go in so many different directions, andl think that's why the auditors said they could never really pin down what exactly was needed. And so I don't know which way to go with this, I'll be honest with you, so I do need direction. Vice Chair Carollo: Maybe in the next few weeks -- maybe in August when we don't have Commission meetings, the three of us could get together and so forth and maybe discuss it and see, you know, where we're at, what we can and cannot do, and go from there. Ms. Gomez: Okay. Vice Chair Carollo: And, you know, maybe I'll reach out to Mr. Migoya and, you know, discuss it with him, see what his vision was and so forth, and you know, coordinate between all of us so we could, you know, move forward, if we're going to move forward, and identify exactly what it is that, you know, we're looking for. Mr. Maginley: That's reasonable. Ms. Gomez: Okay. Vice Chair Carollo: Just -- sounds good? Chair Gort: We're addressing CIP, right? Vice Chair Carollo: It was for -- yeah, it was agreed upon procedures to test -- work on capital improvement projects. Chair Gort: Right. Vice Chair Carollo: I think it came before the February 10 Commission meeting. Chair Gort: All right. Thank you. Anyone else? Are you through? City ofMiami Page 121 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 DI.4 11-00598 Office of Strategic Planning, Budgeting, and Performance Vice Chair Carollo: No. The only thing is I want to thank my colleagues because they've put up with me. I know it's taken quite some time. But if you think this has taken quite some time, you should see actually going through all this before being here. So when I said that I've been swamped these last two weeks, it has taken its toll. But thank you. I appreciate, you know, you having patience with me. Chair Gort: Well, let me tell you, in the last two weeks we received so much paperwork, it really mean something. Anyone else has any questions? Anyone else? Thank you. Mr. Maginley: Thank you very much. DISCUSSION ITEM DISCUSSION RELATED TO THE PROPOSED FY' 12 BUDGET AS PER THE CITY COMMISSION DIRECTIVE ON THE MEETING OF JUNE 23, 2011. 11-00598 Summary Form.pdf 11-00598-Submittal-FY '12 Budget Forecast Summary.pdf DISCUSSED Chair Gort: Now my understanding is -- Mayor Tomas Regalado: If we can do -- Chair Gort: The budget. Mayor Regalado: -- our budget concept, Mr. Chairman. Chair Gort: It's very important to notfij, this is a draft that's being presented to us. Mayor Regalado: It is a draft. It is a concept, you know, but it's important that we present it in public because all of you have been briefed extensively, but it's important that we do come out in public. [Later...] Chair Gort: Okey-doke. Yes, sir. Mayor Regalado: Thank you. Thank you, Mr. Chairman. It is important what we are going to do today. The City Manager, the Budget director, the Finance director, the assistant City Managers, they all been working very hard to bring something today that we can understand will be the roadmap to the budget that we will be presenting to you. By charter, I have to come before you and present the budget. This is not a whole budget because we don't have to do it just yet, but it's important to come out in public to talk about the budget because the County just came out with a concept. Mayor Gimenez last night talked about a concept. He's just offering some ideas, and this is what we propose do. The main component of the budget of the City of Miami, as we all know, is property taxes. In the City ofMiami, there have been thousands and thousands and thousands of foreclosures. There was an inventory that was over there, more than 20,000 units of condos that weren't sold. There was overbuilding in the City ofMiami. This is what we found when we came in, when most of you came in, and we wanted to do something for the people and for the future. So last year we kept the millage flat. We did not do any rollover. We did not raise the millage, meaning raising taxes, and it worked. It really worked. Not only we did the right thing, but we did the intelligent thing. Not only we did the right thing -- you did the right thing for the people ofMiami, but you did the right thing for the future and the present City ofMiami Page 122 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 ofMiami. This is why we are proposing this year to reduce the millage in the City ofMiami. As you know, now we are at 7.6740. We are proposing in the upcoming budget to reduce the millage to 7.5710. Why are we proposing this? Well, because if we were to keep the millage flat, it would have been a slight increase of taxes, a very slight increase of taxes for the residents of the City ofMiami because of an anomaly in the Value Adjustment Board and the way that properties were assessed in certain areas of the City ofMiami. So what we are proposing is to reduce the millage in the City ofMiami from 7.6740 to 7.5710. This will mean a saving like on a house of $300, 000, of an additional savings of $30 for the resident. Of course, the commercial property also will benefit. Now to confirm that what we do today and this year, and what we did last year that we're doing the right thing for the future of the employees, of the residents, by keeping property taxes down, I would like to quote a Bloomberg news report published last Tuesday, July 12, about the City ofMiami. In that report, which was worldwide on the Bloomberg system, they talk about Miami. Experts are comparing Miami to Manhattan and San Francisco today for this reason. They say, andl quote, "Commercial property is showing signs of life in Miami as overseas buyers purchase $447.9 million worth in the first six months of 2011, according to Real Capital Analyst, Inc., a New York -based researcher. That is almost 10 times the 48.1 million in all 2010, but in the City ofMiami. " What this is saying, that the message that we send to investors is that Miami is the place to invest. And this is investing for the future, for the employees, for the residents. I would like to reiterate, 447.9 million worth bought by overseas buyers in the City ofMiami in the first six months of 2011. And Bloomberg News goes on, "Sales ofMiami homes and condos climbed 61 percent this year through May to 10,439 units according to Florida Associations of Realtors data." By having these numbers in Bloomberg News, which is the specialized agency in terms of economic, I think that this is important and very positive for the City ofMiami. They did mention in that report the (UNINTELLIGIBLE) investment, the Swire investment, and they went on and on and on. So this is the main component of this budget. Do we need to make adjustments? Yes, we do, but this shows that we are looking long-term, that we are investing long-term for the employees that want to be part of the City ofMiami now and in the future, for the residents, for the investors. The tax base of the City ofMiami is growing, will be growing. The City is not bankrupt. The City is sound. We propose on this budget to keep the services, and the Manager and his team will give you more details. I just wanted to give you this 30, 000 feet view of the budget, but think it's important that we do send the message that this -- and this is not about politics. This is not about, you know, the people. This is sound policy for the future. We are investing in the future of the City of Miami. So I will defer to the City Manager to continue this conversation with you. Mirtha Dziedzic: Good morning. Mirtha Dziedzic, Budget Department. The proposed budget that you have before you is a balanced budget with the information that we have so far. This balanced budget, what it takes into consideration is the removal of funding for all vacancies with the exception of police officers, which will be budgeted at 50 percent. It also removes capital funding from general fund unrestricted dollars, such as police vehicles, fire apparatus, ERP (Enterprise Resource Planning) funding, and miscellaneous capital improvements to citywide buildings. There was an anomaly this year when calcu -- Go ahead. Vice Chair Carollo: I'm sorry. Could you give me the amounts? Removal of all vacancies -- Ms. Dziedzic: Sure. Vice Chair Carollo: -- can you give me the amounts? Ms. Dziedzic: Um -hum. Vice Chair Carollo: And then the amounts for not funding police vehicles, fire apparatus and -- Ms. Dziedzic: Sure. City ofMiami Page 123 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: -- so forth so we could start seeing -- Ms. Dziedzic: The removal of vacancies generates $7.5 million in savings. Budgeting police officers at 50 percent -- vacant police officer positions at 50 percent generates $2.4 million. Vice Chair Carollo: For a total of 9, 8 -- what, 8, 9 -- 9.9. Ms. Dziedzic: Nine point nine million. Vice Chair Carollo: So approximately 10 million? Ms. Dziedzic: Right. Vice Chair Carollo: Approximately 10 million. Thank you. And for the police vehicles and so forth? Ms. Dziedzic: One second. The police vehicles are $3.7 million, approximately. The ERP funding would have been $3.3 million; Fire -Rescue apparatus, 1 million, and citywide capital improvements, 1 million, for a total of approximately $10 million as well. Vice Chair Carollo: Yeah, even that -- as long as we get the totals. I can get the detail later. Ten million dollars, thank you. Ms. Dziedzic: Additionally, when calculating the millage rate for this exercise, when we received the certified taxable value from the County, we realized that our rollback rate was lower than the current millage rate of 7.674. That is because in the current fiscal year our taxable value changed from a preliminary number of $31.5 billion to $29.6 billion, a change of approximately $1.9 billion. Commissioner Suarez: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Suarez: Can I just kind of put that in laymen's terms? Chair Gort: Beg your pardon? Commissioner Suarez: Can I put that in laymen's terms? Chair Gort: Yes. Commissioner Suarez: Basically, last year we were told that the values were reduced by 15 percent after the Value Adjustment Board made their adjustments based on appeals from the prior, I think, three years that were condensed into one. Our reduction in value was actually closer to 21 percent -- Ms. Dziedzic: Correct. Commissioner Suarez: -- versus 15 percent. That makes up the discrepancy between the 3.5 or 3.8 percent loss that we were told as of the last Commission meeting and the slight gain that we're being told in this Commission meeting. Ms. Dziedzic: Right. So from the anticipated final taxable value to the certified net taxable value, which is what the rollback rate is calculated on, there was a slight increase of approximately $300 million in value. That forces the rollback rate to be less than our current City ofMiami Page 124 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 millage rate to that 7.571. Vice Chair Carollo: Could you say that again and explain it again? I definitely understand the concept. We went over it and so forth. I have to admit, I'm still not 100 percent sold. I'm still doing my due diligence. Ms. Dziedzic: And we've contacted the property appraiser's office to review those numbers and make sure that they are correct. Vice Chair Carollo: Right. They're aware of it, you know. I've spoken with them and so forth. So, again, I don't think anyone here questions my work ethics. But I -- the time hasn't been there, so I'm still doing my due diligence in that. But I just want to confirm what you're saying. If we do the rollback rate this year, we are actually lowering our millage rate and lowering our taxes for this year, correct? Ms. Dziedzic: That's correct. Vice Chair Carollo: If we keep aflat millage rate, what you're saying is that a flat millage rate will actually be a tax increase? Ms. Dziedzic: That is correct -- Vice Chair Carollo: Okay. Ms. Dziedzic: -- and would generate approximately $3 million more than the rollback rate. Vice Chair Carollo: Okay. Ms. Dziedzic: So in order to bridge the gap of our projected shortfall, which began months ago at the $54 million mark, we had some other changes to our estimates, some additional revenue items, such as state estimates for state -shared revenues that came in. This is better information, later information, more accurate, more up-to-date information. And with all of those changes, we reached a point where we got to a shortfall of approximately $24 million. Yes, sir. Commissioner Suarez: Mr. Chairman, ifI may? Chair Gort: Yes. Commissioner Suarez: I have a quick question. This is obviously one scenario. In other words, this is not definitive, obviously. Ms. Dziedzic: Correct. Commissioner Suarez: This is the beginning of a discussion on this issue. One of the things I wanted to clarify is you set forth a variety of different categories under which we could reduce, one of them being vacancies, the other one being capital. A lot of these things are going to be dealt with by and through our contract negotiations with our labor unions, correct? Ms. Dziedzic: The police vehicles are part of the collective bargaining agreement for the FOP (Fraternal Order ofPolice), so that is something that we may have to address in that. Commissioner Suarez: We will have to address. Vice Chair Carollo: In other words, they will be imposing again. City ofMiami Page 125 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Dziedzic: I would defer that to the attorneys, but it's something we have to consider. Mayor Regalado: Commissioner -- Vice Chair Carollo: Is the attorney here? Mayor Regalado: -- ifI may. What you're saying is right, but want to be sure that what we are going to propose is the lower millage. I mean, that -- the other things are to be discussed, but what we officially are going to propose coming -- Commissioner Suarez: Before us. Mayor Regalado: -- next budget season -- Vice Chair Carollo: Well, what you're -- Mayor Regalado: -- is the lower millage. Vice Chair Carollo: -- proposing. You're proposing that now. Mayor Regalado: Right. That's -- Vice Chair Carollo: Right. Mayor Regalado: -- what I'm saying. But since, you know -- so there will be no misunderstanding. The other issues are to be discussed, but we are proposing lower millage. Vice Chair Carollo: And the reason they're doing it now and they're proposing is so next Commission meeting we set the cap on the millage rate and we have sufficient time, at least two weeks, to analyze some of these numbers, the rollback rate and so forth that was mentioned and verifi, that a rollback rate is not like last year, that a rollback rate is actually a tax decrease this year, and that aflat millage this year, from what you're saying, is actually a tax increase. Chair Gort: Increase. Vice Chair Carollo: So -- Ms. Dziedzic: By trim law we would be required to advertise a notice of tax increase if we kept the millage flat. Vice Chair Carollo: Now going back just so that we don't keep going and leave anything unanswered, you mentioned as far as deferring to the attorney. From your proposal of not funding the police vehicles, the fire apparatuses and so forth, will we have to impose this? Ms. Dziedzic: I'm not sure. Vice Chair Carollo: No. If we go with their recommendation is what I'm saying. Commissioner Suarez: Well, I think that's subject to collective bargaining. So the point is that -- Vice Chair Carollo: They can negotiate. Commissioner Suarez: Right. It's -- Ms. Dziedzic: It is -- City ofMiami Page 126 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: My under -- Commissioner Suarez: I think my question had to do with claming whether or not that particular component was subject to collective bargaining, andl think -- Chair Gort: That's it. Commissioner Suarez: -- the answer is that it is. Unidentified Speaker: Correct. Commissioner Suarez: That's it. Chair Gort: Now -- Commissioner Suarez: I mean, I think there's nothing else to say other than that. Chair Gort: My understanding is the unions are talking to the -- and they're coming up with ideas and they're coming with ideas and meeting with them; and I'm sure whatever ideas, they'll bring it to us too. So when we make a final decision, we'll be able to have some more idea prior to taking a decision. Ms. Dziedzic: And the reason -- Chair Gort: Yes. Ms. Dziedzic: -- that that particular item was selected is because it is funded from unrestricted general fund dollars, so these are free dollars. These are not storm water utility funds. These are not parking surcharge funds. These are unrestricted general fund dollars, so that's why that particular item was selected. Additionally, we've identified some items, once we get to the $24 million gap, that we believe can help us bridge this gap even further. One of those items is changing the retiree con -- Sure. Vice Chair Carollo: I should just let you go. I just want to make sure we could see the $54 million deficit, how we're reducing it, and reducing it how, and then ending up with a balanced budget. So you can continue and -- however. You know, again, I always abide by the will of this Commission, but somehow I want to be able to -- Ms. Dziedzic: Sure. Andl could -- Vice Chair Carollo: -- for you to show -- Ms. Dziedzic: -- I can break you -- I can break that down. Vice Chair Carollo: -- the -- Chair Gort: Yeah. Ms. Dziedzic: We started off with the $54 million. Vice Chair Carollo: Right. Ms. Dziedzic: We got -- with the change in the taxable value, we generated leaving the millage flat about half a million dollars. City ofMiami Page 127 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: But that's not what you're recommending. Ms. Dziedzic: I'm sorry. Going to rollback, it's about a half million dollars more because of new construction. Vice Chair Carollo: So pretty much, you're saying a $55 million deficit? Ms. Dziedzic: No. It was 54 million. We gained about a half million dollars in revenue -- Vice Chair Carollo: Of new construction. Ms. Dziedzic: -- from the taxable value changes. It's about 8 -- between 5 and $800, 000. Vice Chair Carollo: Not -- Ms. Dziedzic: Then -- Vice Chair Carollo: -- hold on. Not if we go to this rollback rate, though, correct? Ms. Dziedzic: At the rollback rate. Chair Gort: At the rollback rate. Ms. Dziedzic: Because -- yes. The rollback rate is based on the same number of properties since Vice Chair Carollo: So what -- Ms. Dziedzic: -- we had some new constructions, that difference on the new construction -- Vice Chair Carollo: Right. Ms. Dziedzic: -- does give us additional -- Vice Chair Carollo: I understand. So when the scenario for the roll -- for the reduction is properties over there compared to properties that were there before -- Ms. Dziedzic: Correct. Vice Chair Carollo: -- minus -- Commissioner Suarez: Apples and apples. Vice Chair Carollo: -- the VAB (Value Adjustment Board) and now the new construction -- Ms. Dziedzic: Correct. Vice Chair Carollo: -- brings it up. Ms. Dziedzic: Correct. Additionally, we received estimates from the state in the month ofPune that improved our outlook on certain option -- on certain activities, such as local option gas tax, state revenue sharing, half -cent sales tax. That combination of items generated about $1.9 million additional revenue. And that's how we get to the origin -- the -- you know, bringing it down from 54 to $48 million. From there -- City ofMiami Page 128 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Hold on, Mirtha, please. Chair Gort: You're saying five and one, right? Ms. Dziedzic: I'm sorry? Chair Gort: Five and one. Ms. Dziedzic: Um -hum. Chair Gort: Okay. Vice Chair Carollo: Go ahead. Ms. Dziedzic: Then to get to the $24 million deficit, we, aside from the vacancies and from the capital items that we removed, also changed our assumptions on certain revenue items that are performing a little bit better. Those items are our building permit fees. We increased our estimate by an approximate $1.4 million. Commissioner Sarnoff. How much? Ms. Dziedzic: One point four, based on current year performance. Other licenses and permits, where the mural revenue is housed, is performing also better than the current fiscal year by approximately $1.3 million. Commissioner Sarnoff. Say again. Ms. Dziedzic: The other licenses and permits, which is where mural revenues are housed, is performing because of the murals about 1.3 million better the current fiscal year, so we changed our assumption there. So between those items and removal of the transfers out for the capital project -- the capital improvements and the vacancies is how we get to the $24 million gap. Vice Chair Carollo: I don't have that yet. That's -- I don't have it yet, but you know, continue. We'll get back. Ms. Dziedzic: Absolutely. So from the $24 million gap, we've identified some items that can help us bridge some of the shortfall without changes to wages or furloughs. Those are changing the retiree contributions for group insurance from their current rate of 50 percent to 75 percent, effective January 2012, and that would generate $1.1 million. We also have in our current assumptions no revenues for the red-light cameras. The red-light cameras are starting to produce some revenues. We're expecting approximately 1.8 for the current fiscal year, so we've put in an assumption of $2 million for next fiscal year. Commissioner Suarez: Okay, but your run rate for that is like 2.4, right, 2.5? Ms. Dziedzic: It's a little bit higher. We stayed on the conservative side. Commissioner Suarez: Okay. Yeah, I know. That's what I wanted to get out there, that we're being very conservative because -- Ms. Dziedzic: We're being ultra conservative in all these assumptions. Commissioner Suarez: -- I think we kind of learned our lesson. Last year we were very liberal or whatever. We thought we were being conservative last year but -- City ofMiami Page 129 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Dziedzic: We were -- we -- Commissioner Suarez: -- it turned out not to be that way. Ms. Dziedzic: Right. Vice Chair Carollo: Some of us thought. Some of us did not. Commissioner Suarez: Well, I don't know who thought, but the point is that it got incorporated into our budget as such -- Chair Gort: Yeah. Commissioner Suarez: -- and obviously it was an overly optimistic -- Chair Gort: Very optimistic. Commissioner Suarez: -- budgetary projection. Ms. Dziedzic: Correct. Commissioner Suarez: I mean, we all voted for the budget. Ms. Dziedzic: I mean, it is what it is. We're just trying to get -- right now there's a good run rate and we feel comfortable with this number. For solid waste residential fee, there's a proposed increase of $15 per residential unit. Vice Chair Carollo: Are you proposing the increase? Chair Gort: Yeah -- Ms. Dziedzic: I think so. Chair Gort: -- they propose an increase. Unidentified Speaker: Yes. Ms. Dziedzic: And that's approximately a million dollars of additional revenue. Commissioner Sarnoff.. How much? Ms. Dziedzic: One million. And then we're also proposing a marinas fee increase for certain fees that should generate around 500 -- additional $500, 000 in revenues. Vice Chair Carollo: I'm sorry. Can you repeat that, please? Ms. Dziedzic: Marinas fees, that should generate approximately -- the latest numbers is about $500,000. Commissioner Suarez: That's down also another 500? Ms. Dziedzic: Yes. Johnny Martinez (City Manager): Yes. Because we analyzed the data of the boats or the ships City ofMiami Page 130 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 that are out there and some have a waiting list and some aren't, so we're refining our estimate based on the ones that we have a backlog on that we can raise the dockage fee. And it seems to be in the area of 55 or 50 feet and up. There's room there to increase the fee. At first we were just looking at the entire dockage and it won't work. Ms. Dziedzic: So with those items, now our shortfall is approximately $19 million. Commissioner Sarnoff.. I'm sorry, the shortfall what? Chair Gort: Nineteen. Ms. Dziedzic: Nineteen million dollars. And in order to bridge that gap without changes to service or without imposing layoffs, the alternative use for this analysis was furlough days for all City employees, and 22 furlough days would generate approximately $18.6 million. Vice Chair Carollo: Twenty -- Mr. Martinez: Back to the -- Commissioner, please. Back to the marinas, we were also -- that number contemplates at the beginning taking over the Grove Key Marina operation ourselves. Instead of leasing it out to somebody and getting a percentage, we're looking at manning it and doing it all for us. Vice Chair Carollo: I have a question. Ms. Dziedzic: Yes. Vice Chair Carollo: In the solid waste fees, I know your original projection was 1.5. I know why it went down. We spoke about that and after the discussion, we, you know, lowered it. Marinas fee, though, also lowered by a half a million. You had originally a million. Ms. Dziedzic: Correct. In speaking with -- Vice Chair Carollo: Why? Ms. Dziedzic: -- the Public Facilities director and looking at the fee structure, not all of the fees were recommended for increases because of demand, so changing our focus onto those items that can be increased because of the demand factor, we felt that 500,000 -- and the Grove Key factor -- was more reasonable. Vice Chair Carollo: And don't misunderstand me. I want you to be conservative with any revenue projections. However, we just re -- we just --from what we spoke and what you've given to me, we reduced it a million dollars. So where do we make up that million dollars to -- Ms. Dziedzic: Right. Vice Chair Carollo: -- have a balanced budget? Ms. Dziedzic: And there are other items that are being considered. The Manager is working on some reorganizations and restructuring of certain City departments and activities that already have generated about $500, 000 in savings that are not included in this analysis. So, yes, we've lost about a million, and we've gained about half a million back from those restructurings, andl think the management team is still working on some of those. Vice Chair Carollo: So, question. What we have before us is not a balanced budget; we're off by 500,000? City ofMiami Page 131 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Dziedzic: Approximately. Vice Chair Carollo: So it is not a balanced budget what you're presenting to us? Ms. Dziedzic: It can be a balanced budget. There's some other assumptions that we can take into consideration. This is a moving target, and as we get better information, we are updating our figures, so that's why we're off a little bit here, off a little bit there, but it is the best information we have thus far. Chair Gort: Let me ask you a question. Last year budget we approved a $5 million contingency fund. Ms. Dziedzic: Correct. Chair Gort: My understanding is we will not be tapping in that. We have four month, three month left in this budget, so you're very optimistic that we'll not tap into that $5 million? Am I correct? Ms. Dziedzic: Correct. Chair Gort: Okay. Thank you. Ms. Dziedzic: That's also included in this budget assumption as well. Chair Gort: You have it inside -- you have it in this budget already? Commissioner Suarez: Yeah. Ms. Dziedzic: Yes. Chair Gort: Where do you have it at? Ms. Dziedzic: In non -departmental accounts, there is $5 million for contingency as re -- Chair Gort: So it's part of this already? Vice Chair Carollo: Yeah. Ms. Dziedzic: Yes. -- required by our financial integrity ordinance. And there's an additional $11.5 million for uncollectible revenue because of the requirement from the state for us to budget taxes at 95 percent collection rate and really be more around the 90 percent collection rate, so those stop -gaps that have aided us this fiscal year to get to the end without a deficit have already been included in this figure. Chair Gort: Okay. Just want to make sure. Commissioner Sarnoff. So for the interpretation of the general public, the state allows you or the state requires you to budget at 95 percent collection. Historically, especially the past two or three years, you've been historically collecting at 90, 91, 92 percent, so we're factoring in a collection rate of 90 percent? Ms. Dziedzic: Correct. Commissioner Sarnoff. Okay. City ofMiami Page 132 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: And -- Commissioner Sarnoff. So we're very conservative, right? Ms. Dziedzic: Very conservative. Vice Chair Carollo: And by the way, that's what, once again, saved us this year and that's why we have a balanced budget. Andl think that's something that, you know -- andl applaud the Administration with, you know, our former City Manager Migoya that had that vision and said, wait a second. In all fairness, the trim notice allows us 95 percent, but realistically, we're at that 90, 91 and that's what they had the vision and actually did an additional, you know -- Ms. Dziedzic: Reserve. Vice Chair Carollo: -- reserve for that amount and made sure that no one touched it. Because like I always say, whenever there's a fund somewhere with money, it gets raided left and right, but -- Ms. Dziedzic: It's very well protected And -- Vice Chair Carollo: Right. Ms. Dziedzic: -- additionally, we also have that $10 million in one-time payouts also included in this 12 number, so those are all items that we instituted the current fiscal year that have made us arrive at a balanced budget at the end of the year. Commissioner Suarez: Mr. Chairman, ifI may. I have a question. Chair Gort: Yes. Commissioner Suarez: We had budgeted this year the $10 million for one-time payouts. I know we're nowhere near exhausting that amount. Ms. Dziedzic: Through May we had expended approximately 5.6 million of Commissioner Suarez: Right. So we're half, more or less. Ms. Dziedzic: A little bit more. We do expect at the end of the fiscal year, there is this wave of comp time payouts -- Commissioner Suarez: Yes. Ms. Dziedzic: -- approximately 1.5 to $2 million. Commissioner Suarez: Yes. I think my question has to do with -- andl think this goes back to the APM (Administrative Policy Manual) and -- that the Manager issued yesterday. It -- Are we actually reducing our liability because you said today that we -- that our liability was still somewhere in the $80 million range? If we budgeted $10 million last year and we're going to spend somewhere between 5 and 7, we should be in the $70 million range. And we need to -- in other words, is there -- is the idea to amortize that out of our liability? I mean, I think that's where we're headed. Vice Chair Carollo: You know, I know the Mayor mentioned that we were going to save $20 million. I don't know. I can tell you, I haven't figured out the numbers yet. I haven't done my City ofMiami Page 133 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 due diligence. The APM, I think, came out, Mr. Manager, yesterday? Mr. Martinez: Yesterday. Vice Chair Carollo: So -- Commissioner Suarez: Last night, yeah. Vice Chair Carollo: Yeah. So, again, I haven't been able to do the numbers and so forth. The Mayor said $20 million. I don't know; maybe he would like to elaborate. Chair Gort: Yes. Ms. Dziedzic: The APM is for nonunion members so those that are unionized, their liabil -- their compensated absences -- accrued compensated absences and their restrictions or allowances have not been changed. That's something for collective bargaining as well. So although it's a step in the right direction, it's for a limited population. It's a smaller population. Vice Chair Carollo: So do you foresee lowering our liability by $20 million? Ms. Dziedzic: I can't answer that. Vice Chair Carollo: Okay, that's fair. Chair Gort: Okay. Go ahead, continue. Ms. Dziedzic: Okay. So, in a nutshell, we did put in all of the same stop -gaps that we included in fiscal year '11; severance, the one-time payouts, the reserve for uncollectible revenue, the contingency reserves. We eliminated all the vacancies, with the exception of the police officers, and we eliminated the capital contributions from unrestricted general fund dollars, and the balancing factor, if you will, is the furlough days for all employees. This is very preliminary. We still have a lot of information that we still have to gather and quanti There's still other initiatives that management is putting together and trying to implement before the beginning of the fiscal year that can and should change these estimates or these requirements. Vice Chair Carollo: Mr. Chairman. Chair Gort: One of the things that I'd like to add -- excuse -- is we're looking at the office, we're looking at the fees that are paid by the haulers. And at one time, two years ago, we were collecting about close to -- or three years ago, $12 million. It came down to 9, and we can see -- I think we can improve that. Andl believe we can get some additional revenues in there. We really have to look into it. Ms. Dziedzic: Sure. Commissioner Suarez: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Suarez: Quick question. Is it fair to say that our -- I'm sure the general public will love this one -- unreserved reserved fund balance is $4 million? Diana Gomez: Diana Gomez, Finance director. That is correct. Commissioner Suarez: I just want to put the general financial condition of the City into some sort of perspective when we talk about these things. City ofMiami Page 134 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Ms. Gomez: Our total fund balance is -- Commissioner Suarez: Hard to believe that you can call a reserve an unreserved reserve, but the unreserved part of our reserves is $4 million. Ms. Gomez: That is correct. Vice Chair Carollo: And -- Mr. Chairman. Commissioner Sarnoff. Well, you're -- I'm sorry. Chair Gort: Go ahead. Commissioner Sarnoff. But what you're saying is there's $4 million cash in the bank, but there is $13 million in receivables that you consider to be good collectibles? Ms. Gomez: No. What I'm saying is there are -- there is 14 -- approximately 13.4I think is the fund balance as of year-end. That fund balance has several different components of it. Some of that fund balance is reserved, reserved for prepaid items, reserved for -- hold on one second -- long-term due from other funds of $6 million. So there are about 8 million or so is reserved, has some kind of reservation on it, so it is not available -- readily available -- unreserved, to be used for whatever you wish to use it for. The only amount that is unreserved, completely up restricted is about $4 million. Commissioner Sarnoff. Let me try the question differently because Commissioner Gonzalez used to ask the question this way. How much of that money is money that is owed from the federal government for FEMA (Federal Emergency Management Agency)? Ms. Gomez: For what? Commissioner Sarnoff. FEMA. Ms. Gomez: Of the general fund fund balance, there is an amount of $6 million that is reserved for long-term due from other funds. The general fund does not -- okay. So the FEMA funds are recorded in a special revenue fund, the emergency services fund, and those funds -- those receivables are outstanding in a different fund, not in the general fund. However, the general fund at year-end has to give cash to these other funds because those other funds are in a negative cash position, so we have to reserve some of the fund balance because -- and it's a financial statement reservation because those dollars are so long-term. They've been outstanding for such a long time that we need to reserve for it in the general fund because the general fund already fronted that money and we may not -- well, we plan to get it back. There's no indication that we're not going to get reimbursement back, but because it's so long-term we do have to reserve for it. Chair Gort: Let me ask -- Commissioner Sarnoff. So -- Chair Gort: -- you this way. I'm sorry. Commissioner Sarnoff. So indulge me for a moment. When was the last time we had a hurricane? Ms. Gomez: That can recall, was in 2005. City ofMiami Page 135 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. Right. So let's just theorize. Some of that money is FEMA money and some of that money was from Hurricane -- I forget -- Katrina or -- Ms. Gomez: Katrina, Wilma -- Commissioner Sarnoff. -- Wilma. Ms. Gomez: -- for the majority of it. Commissioner Sarnoff. All right. What actions have you taken in the past six years to get that money reimbursed? Ms. Gomez: The City has been submitting -- putting in packages and gathering all the information. I'm going to give you an example. In -- as of 9/30 when the audited financial statements were -- there were -- bear with me -- approximately $5 million outstanding receivables for hurricane receivables. As of 6/30/2011, there's only 2 million outstanding. In general, you know, when we talk about a lot of the receivables, the -- when we look at all the receivables as of 9/30, it was about $26 million of grant -related receivables at 9/30. As of 6/30, there's only $7.8 million still outstanding on those same 26 million, so we are making progress in collecting the receivables. It is unfortunate -- especially the hurricane receivables are a very time-consuming process and it takes time to get the packages together, to get them up to the state, which needs to be reviewed before FEMA looks at it. Andl don't know the entire process, butfrom -- that is my understanding of it. And so it takes time to get those receivables in, but we are collecting on our receivables. As I can -- as I showed you 26 million that we had at 9/30, and we only have 7.8 outstanding of those same receivables. Now grants are ongoing so there's -- we're spending more, getting -- it's a moving balance. This is the balance of that 9/30. Commissioner Sarnoff. I am merely asking you about hurricane -related FEMA money that has been dedicated to the federal -- to the reserve. Ms. Gomez: Right. And -- Commissioner Sarnoff. What -- Ms. Gomez: I'm sorry. Commissioner Sarnoff. That's all right. What person or team member or team are dedicated to collecting the last $2 million for FEMA money from '05? Ms. Gomez: There is a team in the Fire Department that is working on putting together all the required packages and getting all of the information they need in order to submit successful packages to the state for reimbursement. Commissioner Sarnoff. What is that team called? Ms. Gomez: One second. Commissioner Sarnoff. Morning. Chief Maurice Kemp: Good morning. Maurice Kemp, Fire chief. It is our -- it's under our Emergency Management Division within the Fire Department. Commissioner Sarnoff. So the Emergency Management team is the one that's been assembling all hurricane -related reimbursements from FEMA? City ofMiami Page 136 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chief Kemp: We coordinate the effort and we interface with all the City departments that have a part in it. Commissioner Sarnoff.. What City -- Chief Kemp: The operational departments that are involved are the ones that we interface with. Commissioner Sarnoff. -- department in your opinion has been lax in getting you information? Chief Kemp: I don't think there's a particular department that we can point at. As the Finance director indicated, it's a very complex process and we're working to get better as a city at that process. I met with the former City Manager and he agreed that we should put some additional resources into that effort and those resources are being assembled. Commissioner Sarnoff.. So let me see ifI get what you said. Former Manager Migoya, correct? No? Chief Kemp: We started with former Manager Migoya. We continued to have conversations with former Manager Crapp, and I intend to bring the current City Manager up to date with the status of this process. So it has bridged -- Commissioner Sarnoff.. So he's not currently up to date? Chief Kemp: -- two -- No. My point is I have not had the conversation with the most recent appointment as to bringing him up to status. Commissioner Sarnoff.. Okay. So I can take away from this conversation that we had $6 million in FEMA-related money that should have gone to the reserve that has now been brought down to $2 million? Ms. Gomez: No. The $6 million on face of the financial statements as reserved is not -- I don't want to say it's all FEMA. I'm not sure to say that it's all FEMA-related It is granted -related. Most of it, which is FEMA and UASI (Urban Areas Security Initiative), but I can't say with certainty right now that it's all FEMA, so that's why the slight correction. It is grant reimbursements. Of that 6 million, I would have to go do some more thorough analysis to know how much of that relates to the -- you know, of the 26 total that now we are at 8 point -- at $7.8 million in receivable. Commissioner Sarnoff.. Okay. What -- you know what I'd like to know by the end of today, how much money was owed this time last year to the reserve related to FEMA, how much money is owed today, 365 days later, that is dedicated to the reserve to come up with that defined number of 13 point something million dollars and where you stand with that point zero today. Ms. Gomez: Make sure that understand what it is you're asking for. Commissioner Sarnoff.. Well, here's how I understand accountants work. You guys inevitably create funds, balances, balance sheets, and inevitably you're going to have to show the City of Miami reflecting a reserve account by ordinance, correct? Ms. Gomez: A fund balance. Commissioner Sarnoff.. Let's call it the fund balance. Ms. Gomez: Okay. City ofMiami Page 137 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. Let's call it the fund balance, if you will. That fund balance is going to be dedicated to certain accounts that you have dedicated to put into that cup, that bucket. Fair enough? Ms. Gomez: Okay. Commissioner Sarnoff. Like a water -- it's like water. You decided to go take water from the pool and this is a bucket, and this is the bucket -- Ms. Gomez: There's a reserve bucket and another reserve bucket, so on and so forth -- Commissioner Sarnoff. Right. Ms Gomez: -- yes. Commissioner Sarnoff. We're all going to have a great, big swimming pool, and we're going to make sure that we have enough water in the pool, and you're going to keep a bucket next to the pool to make sure that you can always pour money into the big pool, right? Ms. Gomez: Okay. Commissioner Sarnoff. Isn't that a fair way of looking at this? Ms. Gomez: You can look at it as different buckets of funds, yes. Commissioner Sarnoff. It is as simple as that; is it not? Ms. Gomez: Yes. Commissioner Sarnoff. And the water looks to be fungible, meaning the water looks like water. You just have to have enough money -- enough water in the bucket, correct? Ms. Gomez: Um -hum. Commissioner Sarnoff. I want to know what amount of the bucket that's sitting right outside the pool is FEMA-related money. Ms. Gomez: Okay. Commissioner Sarnoff. What I -- and the reason I bring this up is you sat and you had to answer questions --I think he was in this chair, Commissioner Gonzalez, andl think you remember this -- and you had to explain how much of that was FEMA-related money. I want to know today how much is FFJvLA-related money, andl want to see on a look back -- andl think that's what you guys call it in the accounting industry -- so on a look back 365 days ago when the City was in a fiscal urgency, how much money of the fund balance -- oh, sorry, fund reserve you want to call it -- Ms. Gomez: Fun -- Commissioner Sarnoff. -- how much of that was FEMA-related money? Ms. Gomez: Okay, so I -- the financial statements -- and we calculate fund balance as of year-end so I can do it as of year-end '010 [sic] -- City ofMiami Page 138 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. Either one. Ms. Gomez: -- and as of year-end 2009. Commissioner Sarnoff. That's fine. I don't want to make your life more difficult. I want to see the progress it's made. Ms. Gomez: Okay. Commissioner Sarnoff. Okay. Chair Gort: Let's see ifI can make it simpler. Account receivables a year ago, account receivables today. Ms. Gomez: Um -hum. Chair Gort: That's it. Okay. Ms. Gomez: But I believe that the Commission wants to see of the fund balance the reserved for long-term debt -- I mean, not -- I'm sorry, long-term receivables, how much of that -- Chair Gort: From FEMA. Ms. Gomez: -- specific balance relates to FEMA. Chair Gort: FEMA. Commissioner Sarnoff. Correct. Chair Gort: Right. Ms. Gomez: Do my best. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: We got off a little bit. If we could get back to the budget. I think some of these items will be in our audit -- Chair Gort: (UNINTET,TIGIBT,F) discussions. Vice Chair Carollo: -- report that there was a finding once again for this -- Chair Gort: Right. Vice Chair Carollo: -- so I'm sure we'll discuss it. If we could get back into the budget so we can continue. Chair Gort: Yes, sir. Ms. Dziedzic: Well, that's the presentation. So, if you have any questions -- Commissioner Dunn: Yes. Mr. Chair. City ofMiami Page 139 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Yes, sir. Commissioner Dunn: Not a question. I really want to direct this at the Manager and to the financial team, the management team. Let's assume that the rollback budget that you proposed, for simplicity sake -- as you very well know, I'm not so much technical on a lot of the information, butt would like to ask the staff to consider about seven points that I've somewhat come up with that believe could increase efficiencies to generate more savings. Andl know oftentimes we've talked about the hits that the employees have been taking, andl believe this could be a way thatl believe could be a win -win situation because if we can generate costs through efficiencies that would drop to the bottom line, it would go directly to the employees so that they don't have to suffer so many furlough days. In other words, I would like to try to increase the savings that could go directly to the employees so that that money can be put back into their pockets. Number one, efficiencies by consolidating payroll, the payroll of the Police and Fire into one with the City's civilian payroll. These are just suggestions to you. Two, increase efficiencies in Solid Waste. Three, increase efficiencies in fuel savings. Andl -- you know we have a lot -- that's been a hot topic issue throughout. Commissioner Suarez: Mr. Chairman, can I just ask a question about number two? Chair Gort: Yes. Commissioner Dunn: Yes. Commissioner Suarez: Increased efficiency in Solid Waste. What -- is there anything specific or you're just kind of generally speaking? Commissioner Dunn: No. Well, I've been speaking with some of the personnel over at the Solid Waste and they have some ideas that they believe can bring back some -- that they can improve the efficiencies that will put money back into the budget, and I'm sure that'll come -- that we'll be hearing from that shortly. Commissioner Suarez: Right. Commissioner Dunn: All right, good question. Four, increase efficiencies in fuel savings. Increase efficiencies through improvements in IT (Information Technology). Six, we need to figure out how we can gain some flexibility with the DROP (Deferred Retirement Option Plan) employees. I know that's been a big issue here lately. I want to say that one again. We need to figure out how we can gain some flexibility with the DROP employees. Commissioner Suarez: Mr. Chairman. Commissioner Dunn: Yes. Chair Gort: Yes. Commissioner Suarez: What was number five? Commissioner Dunn: Number five was increase efficiencies through improvements in IT. Commissioner Suarez: What was number four then? Vice Chair Carollo: Four. Commissioner Dunn: Four was increase efficiencies in fuel saving. City ofMiami Page 140 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Three. Commissioner Suarez: What was three then? Chair Gort: We need 'em all. Commissioner Dunn: Gas. Commissioner Suarez: I'm missing one is what I'm saying. Commissioner Dunn: Yeah. Commissioner Suarez: I'm missing one. We got consolidation of payroll, solid waste, fuel savings, improvements in IT and DROP employees. Commissioner Dunn: Okay, you're right. You're right. Commissioner Suarez: I'm missing one. Commissioner Sarnoff. Yeah, you have one, two, three, four, five so far. Commissioner Dunn: Okay, five. Number -- wait a minute. Commissioner Suarez: By the way, so far you and are on board 100 percent so -- Commissioner Dunn: As they say, my bad. It's six, okay. We have five so far. Let me just go over the first five. Efficiencies in consolidating payroll of Police and Fire into one with City civilian payroll. That's one. Two, increase efficiencies in Solid Waste. Three, increase efficiencies in fuel saving. Four, increase efficiencies through improvement in IT. Five, figure out how we can gain some flexibility with the DROP employees. And then number six, and you've already talked about doing this in your APM, and that is to codnY the APM which the Manager has already -- andl believe if we do this, we can find ways to find savings, then we can, for a change perhaps, give something back to the employees of the City ofMiami. Commissioner Suarez: Mr. Chairman. Commissioner Dunn: Let's look at it and see what we can do. Chair Gort: Yes, sir. Commissioner Suarez: I want to commend Commissioner Dunn for taking the time and the energy to put forth potential solutions and potential, you know -- instead of -- we have a tendency up here sometimes to be very critical, and at the very minimum he is making proposals and taking affirmative and positive steps. I want to hear more and I'm inclined to agree with your general points. I want to hear obviously what the specifics are. But I want to commend you for taking the time and the energy to propose positive changes that, you know, hopefully will get us to a point where we don't have to do the kinds of things that we've had to do to some of our employees who are very, very, very hardworking in the City ofMiami. Commissioner Dunn: Thank you. Chair Gort: Thank you. Commissioner Dunn: Thank you. City ofMiami Page 141 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: I think that's something that we all have to do. Our office has been working all year round and coming out with the suggestions. And we have to work as a team. I mean, we're talking to everyone. We've got to be -- realize where we're at, and we all have to work together because it's the only way we can be able to get things done. Yes, sir. Vice Chair Carollo: Mr. Chairman. Exactly. And you know, next Commission meeting we have the cap on the millage, and this is why I think it's important for the Mayor, the management to give us their recommendation, but ultimately we're the ones who vote, andl can ensure [sic] you, Commissioner Dunn, you will not be alone, you know. I'm sure we're all working, you know, in a manner that will show in the next few weeks and so forth to come up with some solutions and see where we're at. And again, ultimately, this Commission is the one who votes on the budget and, you know, you will not be alone. And again, I, you know, commend you for bringing that, you know, before us. And you know, I think as we've demonstrated over the past year and a half that I've been here, we always have very good dialogue, very good discussions and then ultimately come to a consensus. So thank you. Chair Gort: Thank you. Commissioner Dunn: Mr. Chairman, one last -- Chair Gort: Any other questions? Commissioner Dunn: I just -- you know, because -- and I'll just wrap up my part about it. You know, I believe in trying to maintain high morale because at the end of the day it will result in efficiency because if there's low morale in the City with the employees, with the department heads, it creates nothing but chaos. Andl do want to say publicly that it -- you know, this is not my last will and testament here, but it has been a pleasure working and sometimes we disagree, but we've always -- are striven to be agreeable. Chair Gort: Discussions are good. Yes, sir. Mayor Regalado: Just -- I just want to thank you for the input, Commissioner Dunn. The office of the Chairman has been very active in giving ideas, especially on the Solid Waste, the commercial solid waste, and you know, the accrued time and all that. And this is what this exercise is. This is not a real budget, you know. We probably are $500, 000 there to have a balanced budget. However, the Manager has been in very serious conversations regarding the health care and we believe that we can make some savings there, andl guess that he will do that late next week when he has this meeting. We also are proposing to look at some of the expenditures to see if we can trim, so this numbers of furloughs cannot be taken as something that is solid. We will be working with all your office so we can construct a budget, create a budget that, number one, keep the services of the City ofMiami. Number two, and very important, have a -- something for the future for the employees and for the residents in terms of inviting more people to invest in Miami. You just heardMirtha, you know. All of the sudden it balanced and we made more. Well, because the news spread throughout the world. And let me tell you again, and you all know this. After the Swire announcement and the (UNINTELLIGIBLE) announcement, all the financial press in the United States and in the world, it's on us. There was a mention of the fund balance and the reserve, and you know, it was part of the campaign for mayor of Dade County. Because the current mayor said, when I left the City, I left $140 million in the reserve. He's right. After he left in fiscal year 203 [sic], there were $141 million; fiscal year 204 [sic] with Manager Arriola, 136;; fiscal year 205 [sic], also Arriola, $117 million. Then went down 207 [sic], 100 million; 208 [sic], 93 million; 209 [sic], 39 million. And this is why we have what we have now. Andl know that the Manager has ideas too. Maybe in the future we can start building the reserves. So I am very pleased that we can work with all of you in this budget. I am very happy that we can incorporate all these ideas. And hopefully I will be presenting your budget when I stand before you in September in this City ofMiami Page 142 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 hearing. Thank you. Chair Gort: Mr. Mayor, let's -- (UNINTET,TIGIBT,F) one good news and congratulate our Finance Department; went up to New York to do the bond issue, which everybody was worried about, that the bond was going to be hard to sell and so on. The bond was a $70 million bond. They had orders for 222 million, and they had $13 million sold in retail, retail to people in the state of Florida, so that shows that Wall Street and people have confidence in the City ofMiami. Thank you, the team. You guys did a good job. You did a good sell. Thank you. Applause. Chair Gort: Now, if you don't mind, I'd like to bring CA (Consent Agenda) -- Go ahead. Yes, sir. Vice Chair Carollo: Mr. Chairman, if we -- can we -- before we get off the budget topic, I have one more question. Chair Gort: Yes, sir. Vice Chair Carollo: With the proposal of 22 days of furlough for the employees, that's an equivalent to what percentage of a pay cut? Ms. Dziedzic: Six point nine percent. Vice Chair Carollo: It's -- that's 18 days. Twenty-two days is what? Ms. Dziedzic: Oh, I'm sorry. Eight and a half, you're correct. Eight and a half. Vice Chair Carollo: Eight and a half percent pay cut is -- Ms. Dziedzic: Twenty-two furlough days. Vice Chair Carollo: -- the equivalent of 22 furloughs. Ms. Dziedzic: Correct. Commissioner Suarez: Mr. Chairman. Vice Chair Carollo: Thank you. Chair Gort: Go ahead. Commissioner Suarez: I just want to --I want to thank you for bringing up that point on the bond sale. I think it's important. I was going to bring it up when we talked about it -- I think it was a discussion item. Vice Chair Carollo: Actually, I think Diana has a discussion item. Commissioner Suarez: But -- andl think that may be future bond trans -- Butl think what people don't understand about what you just said is that had we been able to sell $200 million of debt, we would have sold $200 million of debt. So the faith -- the good faith and credit of the City ofMiami is so good and the demand for our debt is so high that we were able to sell -- we could have been able to sell far more debt than what we actually did, and of course that drives down our interest rate tremendously. And so one of the fears about having a negative credit rating is that it drives up your interest rate, but the demand is so great for the City ofMiami and for the product that we're selling that, you know, exactly the opposite occurred in reality. City ofMiami Page 143 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Martinez: Mr. Chair. Chair Gort: Okay. Yes. Mr. Martinez: Before we go too far from the previous statement regarding the furloughs, the furlough -- 'cause I don't want the employee population to panic and lower morale. That's just to put things in perspective in terms of furlough days. We are in no way proposing, you know, 22 furlough days. As a matter of fact, due to this exercise, for every $873, 000 in savings, I equate it to one furlough day. And this is just to put things in order of magnitude, but we're working toward hopefully having no furlough days. Chair Gort: We've got a lot of work -- Mr. Martinez: I just want -- Chair Gort: -- ahead of us. Mr. Martinez: We have a lot of work -- Chair Gort: (UNINTET,T IGIBT ,F), yes. Mr. Martinez: -- but this is just to put things in perspective. Chair Gort: Yes. We got a lot of talk and a lot of dealing to do with and a lot of work to do. Mr. Martinez: Right. Chair Gort: Yes, ma'am. You're recognized. Ms. Gomez: Diana Gomez, Finance director. I just wanted to make a clarification because, yes, we were able to put in orders for 222 million and we were able to sell them extremely well. But the -- we did have to buy insurance, so remember -- so our underlying bond rating was low in this case. The insurance did assist us in having such great results, so I just wanted to make sure that was clear. Chair Gort: So our total IT -- Well, you're going to make a presentation? Ms. Gomez: Well, the presentation is on an upcoming deal. Chair Gort: Okay. Ms. Gomez: It's not on this one. I was going to talk about it or mention it, but since you did already, that's fine. Chair Gort: Okay, and the ITC was -- interest total cost was what, 5.6? Ms. Gomez: Five point six five was the all -in interest cost, including all -- Chair Gort: Thank -- Ms. Gomez: -- costs. Commissioner Suarez: And it was -- City ofMiami Page 144 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Yes, sir. Commissioner Dunn: Go ahead, go ahead. He -- go ahead. I yield Go ahead. Commissioner Suarez: I was going to say it was $9 million under the cap that we set for the borrowing cap. Ms. Gomez: That's correct, yes. Chair Gort: Yes, sir. Commissioner Dunn: I just want to reiterate what my colleagues have said and certainly to each and every one of you on the finance and bond team. I want to congratulate you, Mr. Mayor, and the Manager as well. We've had so much negative press, and you have to be very careful when negativity is in the atmosphere because if you're not careful, you can start believing it and it can cause a shadow of doubt. So I do hope -- I did see my good friend, Al Crespo; he stepped out. Now somebody let him know that we're doing fine in the City ofMiami. END OF DISCUSSION ITEMS PART B: PLANNING AND ZONING ITEMS PZ.1 ORDINANCE 11-00584zt First Reading AN ORDINANCE OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AMENDING ORDINANCE NO. 13114, THE ZONING ORDINANCE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ARTICLE 6, TABLE 13, ENTITLED "SUPPLEMENTAL REGULATIONS," BY ADDING DRIVE -THROUGH AND DRIVE-IN REGULATIONS FOR T4-O; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. 11-00584zt CC SR 07-28-11 Fact Sheet.pdf 11-00584zt PZAB Resolution.pdf 11-00584zt CC Legislation (Version 3).pdf 11-00584zt ExhibitA- NEWpdf LOCATION: Citywide APPLICANT(S): Johnny Martinez, P.E., City Manager, on behalf of the City of Miami FINDING(S): PLANNING DEPARTMENT: Recommended approval. PURPOSE: This will introduce regulations for drive -through and drive-in regulations for the T4-O Transect in Article 6 of the Miami 21 Code. Motion by Commissioner Suarez, seconded by Commissioner Dunn II, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Dunn II Absent: 1 - Commissioner(s) Carollo City ofMiami Page 145 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: PZ.1. Vice Chair Carollo: PZ.1 and 2. Chair Gort: PZ.1 and 2. Commissioner Sarnoff. We definitely have those. Luis Cabrera (Acting Chief of Operations/Assistant City Manager): We need to pass the solid waste -- Vice Chair Carollo: We still got a few more items. Mr. Cabrera: -- fee. Chair Gort: PZ.1 and 2. Vice Chair Carollo: I'll go easy with the rest of my discussion items. I think there's only probably two that, you know, I really want to discuss. It'll be briefly, and then I'll defer some of them, but let's get some of the other stuff out of the way. Chair Gort: There's one that we really need to discuss and go -- Vice Chair Carollo: Exactly. Chair Gort: -- into in detail. Vice Chair Carollo: Exactly. Chair Gort: Okay. Vice Chair Carollo: There's two actually. Chair Gort: Planning and Zoning. Maria J. Chiaro (Deputy City Attorney): The PZ (Planning & Zoning) items are both legislative items. They therefore don't need to have the speakers sworn in. Chair Gort: Okay. Ms. Chiaro: They're both items that are proposed by the Administration. Chair Gort: Okay, Administration. Francisco Garcia (Director, Planning): My apologies -- Chair Gort: Yes, sir. Mr. Garcia: -- Mr. Chairman and gentlemen of the City Commission. PZ.1 is an amendment to the -- Chair Gort: And you are? Mr. Garcia: My apologies. Francisco Garcia, Planning director. PZ.1 is an amendment to the zoning ordinance, Miami 21, and it seeks to provide additional regulations for T4-O. In City ofMiami Page 146 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 particular, these regulations will allow for drive-throughs and drive-ins to be located in T4-O zoned parcels, but only those which are actually abutting principal arterials as designated by Miami -Dade County. This particular proposal was reviewed by the PZAB (Planning, Zoning andAppeals Board). They actually recommended denial by a vote of 4-3. It was generally considered favorably. However, there are some aspects of it thatl wanted to mention to you today that might consider some revisiting by you at this time. In particular, what we are proposing is that these uses be allowed through a warrant process, which is actually an Administrative review by the Planning Department, and it is of course appealable to the PZAB, Planning, Zoning andAppeals Board. It was felt by some at the board and some of the members of the public that these uses should only be allowed if the access can be provided solely through the primary arterial. We agree with that. However, in some instances, it was said FDOT (Florida Department of Transportation), or whatever other jurisdiction actually governs that right-of-way, may preclude, through distancing requirements, the ability for these sites to actually have access through the primary arterial; and only in those cases are we then recommending that through the warrant process, we might allow access through perpendicular side streets. Commissioner Suarez: Move it. Chair Gort: Okay, it's been moved -- Commissioner Dunn: Second. Chair Gort: -- second. Any discussion? Being none, all in favor, state it by saying -- Ms. Chiaro: It is an ordinance -- Commissioner Suarez: PZ -- Chair Gort: An ordinance. I'm sorry. Ms. Chiaro: -- of the Miami City Commission. And you need to open the public hearing. Chair Gort: Public hearing. Is anybody who would like to address PZ.1 ? None. Read it. The Ordinance was read by title into the public record by Deputy City Attorney Maria J. Chiaro. Todd Hannon (Assistant City Clerk): Your roll call on PZ.1. Commissioner Sarnoff? Commissioner Sarnoff. Francisco, this provides for a waiver process, which, if need be, could get to the Commission? Mr. Garcia: A warrant process, sir, it is administratively approved by the Planning Department, but can be appealed to the PZAB and ultimately to the City Commission. Commissioner Sarnoff. Yes. Mr. Hannon: Commissioner Dunn? Commissioner Dunn: Yes. Mr. Hannon: Commissioner Suarez? Commissioner Suarez: Yes. City ofMiami Page 147 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Hannon: Chair Gort? Chair Gort: Yes. Mr. Hannon: The item passes on first reading, 4-0. PZ.2 ORDINANCE 11-00588zt First Reading AN ORDINANCE OF THE MIAMI CITY COMMISSON AMENDING ORDINANCE NO. 13114, THE MIAMI 21 CODE, THE ZONING ORDINANCE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, BY AMENDING ARTICLE 1, SECTION 1.1, ENTITLED "DEFINITIONS OF BUILDING FUNCTION: USES", TO ADDA DEFINITION FOR REGIONAL ACTIVITY COMPLEX, ARTICLE 4, TABLE 3, ENTITLED "BUILDING FUNCTION: USES", TO PROVIDE PERMISSIBILITY FOR SAID USES, ARTICLE 6, TABLE 13, ENTITLED "SUPPLEMENTAL REGULATIONS", AND SECTION 6.5, ENTITLED "SIGN STANDARDS", BY ADDING SIGNAGE PROVISIONS FOR SAME; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. 11-00588zt CC SR 07-28-11 Fact Sheet.pdf 11-00588zt PZAB Resolution.pdf 11-00588zt CC Legislation (Version 3).pdf LOCATION: Citywide APPLICANT(S): Johnny Martinez, City Manager, on behalf of the City of Miami FINDING(S): PLANNING DEPARTMENT: Recommended approval. PLANNING, ZONING AND APPEALS BOARD: Pending recommendation on July 6, 2011. PURPOSE: This will establish provisions and regulations for large assembly facilities, including definition, permissibility of uses, supplemental regulations, and signage provisions for such facilities. Motion by Commissioner Sarnoff, seconded by Commissioner Dunn II, that this matter be PASSED ON FIRST READING PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Dunn II Absent: 1 - Commissioner(s) Carollo Chair Gort: PZ.2. Francisco Garcia (Director, Planning): PZ.2 is also a proposed amendment to Miami 21, the zoning ordinance of the City ofMiami. In this instance what we are proposing is that a new use be introduced in the City ofMiami known as `Regional Activity Complexes." Briefly, the reason why we are proposing this is the following. At present very large venues which serve as regional attractions along the lines of the American Airlines Arena, the Marlins stadium, venues of that size and caliber are essentially no different than places of assembly. We think that because these uses, both the ones that are present now and the ones that may be developed in the future, need a special review and need to be studied carefully for potential adverse impacts. We are setting up a different category for these uses. We are also setting up a different process to review and City ofMiami Page 148 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 M.1 11-00597 Honorable Mayor Tomas Regalado ultimately have them approved. And we are proposing that they be allowed only in CI, or civic institutional districts, CIHD (Civic Institutional Hospital District), or civic institutional hospital district, and the upper ranges of the T6s, so from T6-24 0 and up. These are areas of high density that actually can withstand these uses where they are appropriate. In addition to that, we are proposing that they be approved only through the exception process which requires a public hearing. And while we were defining these uses, we also gave some thought to the signage possibilities for these large venues. And because the signage packages for these large venues are likely to be larger than typical, we are providing for criteria to review the signage packages, and we are also requiring that the signage for these venues be processed through an exception process which, once again, requires a public hearing process. Chair Gort: Okay. Mr. Garcia: I should also add -- I'm sorry -- that the PZAB (Planning, Zoning and Appeals Board) recommended approval unanimously, 7-0. Chair Gort: Okay. It's a ordinance, right? Commissioner Sarnoff. Move it. Commissioner Dunn: Second. Chair Gort: It's been moved by Commissioner Sarnoff, second by Commissioner Dunn. Anyone in the public would like to address PZ.2? Showing none. The Ordinance was read by title into the public record by Deputy City Attorney Maria J. Chiaro. Todd Hannon (Assistant City Clerk): Your roll call on PZ.2. A roll call was taken, the result of which is stated above. Mr. Garcia: Thank you. Mr. Hannon: The ordinance passes on first reading, 4-0. END OF PLANNING AND ZONING ITEMS MAYOR AND COMMISSIONERS' ITEMS CITYWIDE HONORABLE MAYOR TOMAS REGALADO RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE SALARY AND BENEFITS FOR CITY MANAGER JOHNNY MARTINEZ, P.E., EFFECTIVE JUNE 23, 2011. 11-00597 Legislation.pdf 11-00597 Exhibit 1 SUB.pdf Motion by Vice Chairman Carollo, 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 City ofMiami Page 149 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 R-11-0284 Chair Gort: At this time, my understanding is I have several requests from the Finance Department. My understandingMirtha would like to present the budget at this time because she was kind of ill yesterday since we putting a lot of pressure on the Finance people. And if you don't mind I'd like to get Mirtha aboard. Mayor Tomas Regalado: Mr. Chairman. Chair Gort: Yes. Mayor Regalado: You want to do the Manager's compensation package now, if possible? It's on my page. It's a city-wide page, and as you know, all of you have been brief. And then if we can -- this will be quick, but if we can then do the budget. As you said, the budget director has to go to the doctor and -- Chair Gort: Go right ahead, sir. I don't have a problem. Mayor Regalado: Thank you. Commissioners, I am before you to bring you a resolution of the Miami City Commission, with attachment, approving the salary and benefits for City Manager Johnny Martinez, effective June 23, 2011. As you know, the Commission approved my appointment of Johnny Martinez as City Manager of the City ofMiami, and we -- at that day we said that we will be back with a compensation package to present it to you. Manager Martinez is leading by example and as you can see, the salary is less than $200, 000 then you have all the other items that are on your package. So I respectfully ask that you vote and support this compensation package for Manager Martinez. Chair Gort: Okay, sir. Any board members? Commissioner. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: Thank you, Mr. Chairman. Mr. Mayor, thank you for your recommendation on the salary package for Mr. Martinez. Since appointed City Manager I have worked closely with Mr. Martinez, as I saidl would. I think he andl have both have shown good faith and worked together, andl could tell you, I truly believe that we've made great strides. So what I'm about to say has nothing to do with Mr. Martinez. However, it has a lot to do with the financial situation that we are in. And remember, just a few weeks ago there were even some that didn't even think that we were in a deficit. With that said, I think the contract recommendation is much too rich, much too luxurious, especially with the financial situation that we're facing. It's my understanding that pretty soon you're going to hear next year's budget recommendation from either the Mayor, the Manager, the budget director and from what I've seen, it's going to recommend that employees take anywhere from 18 to 22 days of furlough. It is going to recommend that we forego buying police cars and fire/paramedic equipment. With that said, as I look at this package, the first thing that jumped out at me is this statement. Upon honorable separation, City Manager shall receive payment of all unused vacation and sick leave. Mr. Mayor, do you know what the compensation liability is as of September 30, 2010? Mayor Regalado: Eighty-two million for the next year -- Vice Chair Carollo: Right. Mayor Regalado: -- but as you know, the Manager sent last night an APM (Administrative Policy Manual) that would reduce that liability by $20 million in the next years and he can City ofMiami Page 150 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 explain. I'm sure that we all got it. Andl was -- andl understand what you're saying, and you know, the last Manager was making similar as he was making. His contract was approved, andl do understand your concern. The Manager has decided to get only a slight increase of what was offered to him by the former Manager Carlos Migoya on his salary, on the benefits. Here's the whole package that it mirrors what you approved for the City Attorney and the City Clerk and of course when we have an auditor general. But I believe that the City Manager has taken action in terms of executive to reduce the liability. Vice Chair Carollo: Thank you, Mr. Mayor. The amount is $84.2 million as of September 30, 2010. Mayor Regalado: Right. Vice Chair Carollo: I can tell you that with my vote, we will not add to that liability. I cannot support, you know, upon separation the City Manager receiving payment of all unused sick and vacation. As a matter offact, I think when we were here months ago, we made sure that the City Clerk and the City Attorney would not have -- it would be a use it or lose it policy andl think that's what we have been striving for. Yes, I saw the APM yesterday and, you know, I applaud you. It's a very good start. However, that does not make this correct, so that's the first thing that really caught my attention. I mean, I think -- and again, I feel somewhat uncomfortable because I've had a very good relationship with Mr. Martinez. I mean, like I said, we've both shown very good faith and we've made great strides, but the bottom line is I'm seeing this -- I'm seeing the financial situation that we're in, I'm seeing the proposal for next year's budget and the truth of the matter is, there's going to be a lot of sacrifice and, realistically, I think this is way too rich. That's the first thing that really caught my eye. Second thing, I'm looking at vacation time and I'm looking at 27 days per year of vacation time. That's more than a month. That's more than a month. With the issues we have in the City ofMiami, I don't think the City Manager should be gone more than a month and that's not even counting sick days, earned personal leave and holidays. I would recommend that that vacation at least goes from 27 days to at least 20. That will give him a month vacation andl think a month is more than enough andl think we 're being very generous. Earned personal leave, two days. I don't see why someone should receive the earned personal leave. I think that that should be gone, too. Let's talk about severance. I think severance has been a hot topic. It appears to me from this severance package that the Manager will be allowed to receive approximately $65, 000 in salary and benefits -- I don't know the benefits part, how much it would be. But again, I think, realistically, it's time that we set an example and we stop any severance payment whatsoever. I think we've had a lot of sour tastes in our mouth -- at least I have -- when we start adding up all the improper severance payments that have been given, and we can discuss that now or later. I think, realistically, it's not fair to now ask, once again, our employees to take pay cuts, furloughs and so forth. It's just not right. Not to mention that, once again, five of us are here with some real tough decisions and if you don't think they're tough decisions, stick around for the next few months. Chair Gort: Vice Chair, my understanding is we have a resolution taking care of the -- (UNINTELLIGIBLE) discussing right now, doing away with it. Vice Chair Carollo: Well, not in total but, yes, we've made strides. Yes, definitely. Chair Gort: We're going to make it. Vice Chair Carollo: I agree. We're making strides. However, when you start looking at our financial -- and as a matter offact, the State Legislature also passed a statute -- Chair Gort: Right. Vice Chair Carollo: -- addressing that, so I think we're seeing it from all angles. But still, this City ofMiami Page 151 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 severance package I think is too rich andl don't even know what the amount is because when you consider his benefits, I really don't have the amount -- what dollar amount is the benefits. So we're looking at -- potentially at the low end, 65,000, higher, I don't know. Another thing I'm seeing, why deferred compensation and a pension retirement? Why both? I know in the past I asked this. The answer was because other executives have this; and if other executives have this and the City Manager is the top executive, then how could he have something less than, you know, a director or so forth? I'm not against him having one, either/or, but both, I think, once again, is way too rich, way too luxurious. Insurance. Let me ask you something. What's the executive benefit plan? How much does it cost? Is it decent from the employees? Because ifI remember when we talked about the health care, it seemed to me like everything was the same. Okay, so I just want to vernj, that. It's the same health care that every employee receives in the City ofMiami. And could get someone to verin, that? Calvin Ellis: Calvin Ellis, director of Risk Management. Yes, it's the same benefits. I mean, the compensation structure is a little bit different, but it's the same benefit. Vice Chair Carollo: Okay, so the executive is just a word. So every City employee gets an executive benefit package or plan? Mr. Ellis: Well, no. In terms of the cost allocations, they pay the same deductibles. They're subject to the same, you know, copayments, coinsurance. Vice Chair Carollo: Two minor -- two other minor things that I will mention and then, you know, if my colleagues would like to chime in or speak about it so we could, you know, have an open discussion about this. You see where I'm standing. Life insurance, accidental death, you know, insurance and so forth. I don't know about that. Again, we're in difficult financial times. And the last thing will mention, I saw that the previous Manager had a salary of 185. How come we're increasing it to 195? And that's the last item that I'll touch. Chair Gort: Thank you. Commissioner Suarez. Commissioner Suarez: Thank you, Mr. Chairman. Unfortunately, I didn't have an opportunity to discuss this with the Manager. I had wanted to. And I think the Vice Chairman made a lot of good points. I have here in front of me the City Attorney's compensation package that I help negotiate with the Commission's approval, the former City Manager, et cetera. There are a variety of different issues that the Vice Chairman brought up that I have to say I completely agree with. One of them being -- well, several of them. First being the vacation and sick banking. We had changed that for the City Clerk and we had changed that for the City Attorney, so I think it would be fair that it would be a use it or lose it policy. I think that is more in line with the way it works in the private sector, and you know, we are scaling back on that with reference to the rest of our employees. I don't know at what point we're going to -- if we will ever go to a strict use it or lose it policy -- that's my personal preference -- city-wide. But certainly, I think we have to, you know, set the example at the top. So that's my preference on that issue. The vacation days, we had for the City Attorney 21 days. It was use it or lose it. And I think we had for the prior City Manager 21 days, so I don't see why it would be more than 21 days. That's three weeks. Andl think that's 21 actual working days so that's actually closer to a month. I hope we're not going to have a City Manager -- I don't think he would take a month off. Seriously doubt it. And I feel bad every so often that I call the City Attorney and she's actually on vacation andl tell her, you know, we did make it use it or lose it, so the fact you're on vacation, I can't give you too much of a hard time about that. But she's very gracious to answer the phone and still essentially do her job while she's on vacation so I very much appreciate that when she does that. Again, I brought up the issue of deferred compensation when we talked about the, you know, City Attorney's salary. I don't agree with deferred compensation. I think that's totally excessive. We had put into her contract that if we eliminated that for all the other executives, that it would be eliminated for her as well so, you know, that may be something that we want to decide as a City ofMiami Page 152 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 policy matter going into this budget, that we want to eliminate all deferred compensation for all employees. I think there was 20-something executives in the City at the time or somewhere between 10 and 20 that were receiving deferred compensation, which, as you correctly stated, is in addition to whatever pension benefits or 401k -- I'm not sure where it says pension and retirement, whether that's a defined benefits or a defined contribution plan. It's not really clear. It says that it is a 20 percent contribution on the basis -- on the side of the City. I don't know if that includes -- you know, 'cause I know that we have a -- you know, we have an annual contribution and then we have to amortize the losses in our fund when it loses money so that increases the contribution from the City. I don't know, you know, whether that 20 percent includes that or not so that's a little confusing to me. What else? I think we got clar -- I think we got -- Vice Chair Carollo: Earned personal leave. Commissioner Suarez: -- well, I think we got some clarity on the executive benefit plan. Yeah, earned personal leave. What is it? Vice Chair Carollo: Severance. Chair Gort: No severance. Commissioner Suarez: Well, earned personal leave is in there for -- was in there for the former City Manager and is also in there for the City Attorney, so you know, I think we -- again, a lot of this has to do with whether we make a policy decision, I think we should apply it to everyone. That's my personal opinion. Vice Chair Carollo: When? When do we make a change? Commissioner Dunn: Mr. Chair. Commissioner Suarez: Whenever you want. Chair Gort: We can make the change today. Commissioner Dunn: Mr. Chairman. Chair Gort: That's no problem. Commissioner Suarez: Remember, these are contracts now too, so we have to take that into account. The other thing wanted to -- that didn't understand and was going to ask the City Attorney was if we passed this ordinance -- well, if we do vacation use it or lose it, then that solves that issue. That's not an issue anymore. I think severance, again, it's -- I have to agree with the Vice Chairman on this. It's something -- in the City Attorney's compensation package, in all honesty, we do have a severance component and it's part of her compensation. If she is terminated without cause, then she's entitled to severance. If she were to resign, as was the case in these other situations -- Vice Chair Carollo: Exactly. Commissioner Suarez: -- or if she was terminated for rightful cause, she would not be entitled to severance. Personally, I don't think anybody should be entitled to severance 'cause I think what you get for working here is your salary plus whatever benefits you accrue and that's it. I know that's not historically the way things have been done in the City ofMiami, but that's my personal opinion, particularly given some of the things that you brought up in terms of what our employees are going to have to go through potentially this year. So I'm not a fan of that. It was City ofMiami Page 153 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 a tense item of negotiation when we went back and forth on it. I tried to get that negotiated out and I think we compromised on our contract but, you know, if this is the board's will to eliminate the severance, I'm fine with that. The -- what I would just say is that there are other executives that have it, and so how do you, you know, do it for one and not do it for the other ones? You can't break the other one's contracts so, you know, we would have to figure that out. It's supposed to be fair. In terms of the salary, you know, I mean, we can talk about that all day long. We can do analysis, comparative analysis of the salaries. There's a lot of people that think that, you know, all top level governmental officials are overpaid and, you know, certainly, this is a reduction in salary from what I believe -- Commissioner Dunn: Pete Hernandez. Commissioner Suarez: -- Mr. Hernandez was making. It's probably a substantial reduction from what Mr. Hernandez was making, but -- Mayor Regalado: It's about 30 percent. Commissioner Suarez: Yeah. So it's -- Chair Gort: Can we compare with the -- Commissioner Sarnoff.. Two hundred and twenty five thousand. Mayor Regalado: Huh? Commissioner Sarnoff.. I think he was earning -- Chair Gort: -- Carlos Migoya salary? Commissioner Sarnoff.. -- 225, 000. Commissioner Suarez: No. You can't compare it with Carlos clearly. Chair Gort: Can we compare with Carlos Migoya salary and benefits? Commissioner Sarnoff.. There's no comparison. Commissioner Suarez: So, you know, I -- Mayor Regalado: Well, if you compare now what he's getting in Jackson. Commissioner Suarez: Yeah. Commissioner Sarnoff.. Then it is a fair comparison. Commissioner Suarez: I mean -- Vice Chair Carollo: It was an investment. Commissioner Suarez: I'm not sure -- Vice Chair Carollo: He had to prove himself here. It was an investment. Commissioner Suarez: By the way, I'm not sure that anything we did with the last City Manager should be used as a basis for making any decisions. I'm not sure how well that worked out. So City ofMiami Page 154 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 you know, as a standalone issue without really putting it in the context of the last one or the prior one, it's not -- to me it's not a completely offensive amount. I think the -- Commissioner Dunn: No. Commissioner Suarez: -- Mayor of Dade County just named a chief of staff at $225, 000 -- Commissioner Dunn: Wow. Commissioner Suarez: -- so you know, not saying that that's something that -- Commissioner Sarnoff.. Vice Mayor. You call him a Vice Mayor. Commissioner Suarez: Whatever. I suppose he can do whatever he wants 'cause that's his -- he has -- he's a strong Mayor, so he can name -- make whatever he wants to name so -- But definitely, I think the other issues that the Vice Chairman brought up are very legitimate issues and, you know, it's up to this board what -- where do we go from here? You know, what kind of a tone do we want to set? I think one of the things that we have all harped on is whatever we do, it should be fair and that -- those two issues were incorporated into the City Attorney's contract with reference to deferred compensation and COLA (Cost of Living Allowance). So, you know, if it weren't given to others, then it would be taken out of her contract. Vice Chair Carollo: Mr. Chairman. Commissioner Dunn: Mr. Chair. Vice Chair Carollo: Just -- Chair Gort: Yes. I have Commissioner Dunn. Vice Chair Carollo: Okay. I just -- Chair Gort: Commissioner Dunn. Vice Chair Carollo: -- wanted to follow up with something he said. Commissioner Dunn: Let me somewhat follow the sentiments of both the Vice Chair and Commissioner Suarez and I'll harp on two things; fairness and consistency. Andl believe if we do that, we won't get ourselves in any trouble in terms of morale in the City ranks. I have to say, though, $195, 000, Mr. Martinez, you've already, at least to me, demonstrated in the last couple of weeks your leadership qualities, andl want to commend you publicly for that. I was wondering for a long time who was, in fact, running the City. Yes. And it's embarrassing when a subordinate can just do what he pleases and say what he pleases and that's a distraction to all of what we're trying to do. And l just want to thank you for setting the tone because I was getting ready to just tell every director y'all say whatever the hell you want to say, do whatever you want to do because, you know, anything goes. But I want to thank you for setting the tone that you are the supervisor, you are the chief executive officer. And for me, that means a whole lot because it has to start at the top. And so I want to personally thank you for doing that not because of -- just to set a tone. We have to be consistent. We have to be fair. And so the 195, that's fine. You've earned it already in my eyesight. You're doing some things that you're trying to do. That's not a lot of money. And we must remember in this line of business, you get what you pay for. So if we're going to be a world -class city and we're going to be -- I know given our conditions that we're facing, fiscally, but we are the largest city in the state of Florida, municipality. Now we've got some issues that are pressing us financially so we have to be prudent about it, but we can also find ourselves, if we're not careful, being penny-wise and pound foolish. So I will support City ofMiami Page 155 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 what this board supports in terms of consistency and fairness, but $195, 000 is not a whole lot. You can't put Mr. Migoya in the equation because, you know, you won't find another one of those, but of course he did get a major increase. Commissioner Sarnoff.. Mr. Chair. Chair Gort: Commissioner Sarnoff. Commissioner Sarnoff.. You now, I guess I start with the analysis at a hundred thousand square feet, which is is Mr. Martinez the right man for the job. You know, four out of the five of us agree he is, and I've always kind of marveled at government. I've always marveled at the fact that you don't pay people for the job they do when they're there. What you do is you pay them ad infinitum later. So why not give him the correct salary and not give him any incentives other than to work while he's here? Why disincentivize the man to not be here? Having said that, ever since I got on this Commission -- andl believe then Mayor Regalado agreed -- I was trying to create a use it or lose it scenario. Chair Gort: We discussed it. Commissioner Sarnoff.. Nobody -- right -- would ever agree with me. It was -- there was actually a formula shown to us why use it or lose it doesn't work, andl thought it was very interesting to look at this formula andl'm thinking to myself if only we had the Vice Chair on there, we would have had a CPA (Certified Public Accountant) saying that ain't no formula. And having said all that -- I'm not going to reiterate a lot of what was said, but I do have some hard, I think, good ideas. Just by the conversation this Commission's had here -- and by my calculation, we have taken $125,000 out of this particular package. Perfectly appropriate. Here's what I suggest we do andl'm going to give you the Sarnoff (UNINTELLIGIBLE) plan. You get 14 days a year in vacation time. You don't take it, sorry. You get five sick days. You should never be sick. I don't know what earned personal leave is 'cause we don't have that andl don't know what that is. Holidays. If the City ofMiami is not open for business, I guess you don't theoretically have to be here but I suspect you might be here to catch up on some work, but that would be your choice. Severance. I am against severance except -- andl want to caution everybody. I like to give people severance and get a full release in return. So I propose we give him one month's severance to incentivize him to give us a full and complete release from the City ofMiami from any and all liabilities he might consider that we might have ever been done to him or ad infinitum. And as I do in the private sector when somebody says to me I'm about to terminate or an employee's about to leave and he says what can you do for me andl said let's get a release. I don't know if you've been watching this since you've been here, but since you gentlemen have been here, I think we've had intended lawsuits or lawsuits from six employees that I know of. So I don't want to tie our hands and say never severance ever. Would you like a month's salary? Give us a full and utter complete release of any claims you may have. With that all being said, I agree 100 percent if there is a retirement section that you earn here, then so be it, but you don't get two; you simply get one. Now, having scrubbed all this out, what I would propose is the following. Because you took so much away from him, I would propose he has a salary -- straight salary $200, 000 a year. The car allowance, I was prepared to lower that, but I'll leave it where it is. The cell allowance, he probably should have two cell phones, maybe three, and he's probably one of the few guys that maybe should have that. Vacation, 14 days a year; sick days, five days a year, use it or lose it. I don't know what earned personal time is so what I do is remove it. Holidays -- forgive me, gentlemen; I thought we had eight holidays, City ofMiami, but if we have eleven, so be it. Obviously there should be nothing in regards to honorable separation. You shall receive payment of all unused vacation and sick leave. That is the use it or lose it policy. Vice Chair Carollo: Policy. City ofMiami Page 156 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff.. I think you should consider one month's severance upon full release to the City ofMiami of a full and complete release. And he should only be able to receive either -- I thought it was called a 401a, could be wrong, or a pension, depending upon what he opts to, but he does not get two retirement plans. That's what I would propose to this Commission. Chair Gort: Okay. The -- it's kind of difficult. I would like to see the 20 days vacation, take it or leave it. Andl would like to leave it myself, personally, at 195. It's -- the severance, I always talked about a severance. And if you remember when we were discussing last year, we discussed quite a bit take it or leave it. I wanted to have it implemented last year on unclassified so we can give an example. My understanding at that time the Manager didn't want to do it, so I feel that it's up to you all, what you all like to do. Vice Chair Carollo: Mr. Chairman. Chair Gort: Mr. CPA. Vice Chair Carollo: This is where, you know, we deliberate now and -- Chair Gort: Right. Vice Chair Carollo: -- come up with a consensus. The difference between 200 and 195 is not that big of a deal so I think, you know, we can leave that until the end. I don't think we'll have any big argument with that. Car allowance, cell phone allowance, you know, that could be viewed as part of his salary. Chair Gort: He needs that. Vice Chair Carollo: So, you know, we could consider that. So I mean, you could even say the 195 plus the car allowance and salary [sic] will get you to your point, Commissioner Sarnoff, but again, we can move that aside. It appears to me from what the Risk Manager -- the Risk Management director said, that the health, vision, dental, health insurance is the same as all other City employees. I don't know if all City employees have life insurance. I don't think so, but you know, we could discuss that. I think now when we get into the more detail is vacation days. It was proposed 27 days. I think we are all in agreement that it should not be 27 days. It appears like we have between 14 and 20. IfI want to just go right down the middle, I say we add them both, divide by two and -- Unidentified Speaker: Seventeen. Vice Chair Carollo: -- give him, you know, somewhere in that area of 17. Somewhere around there. That's what I suggest. Sick days, I suggested 12. Commissioner Sarnoff suggested 5. I can go either way. We can go somewhere in the middle. I could tell you this. Where I will not bend -- Chair Gort: You can't get sick. Vice Chair Carollo: -- is in the use it or lose it. I will not bend with that. I really believe that it should be use it or lose it. I don't think we should add to our compensation liability andl think we all agree on that. Earned personal leave, I think we all agree. You know, what is that? We don't even know what it is. We don't have it. That should be gone. Severance. Severance is one thatl think we will have a little, you know, discussion on. I didn't want to see it at all. You do bring up a good point, Commissioner Sarnoff, so it's something thatl want to discuss a little further, see what my colleague to the right of me, Commissioner Suarez, and all of you think about it because I think what Commissioner Sarnoff proposed is reasonable. It's something that we could definitely discuss. So we could be -- I at least could be flexible with that. I definitely City ofMiami Page 157 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 don't want four months, but one month, you know, with a sign of release could definitely be something that I may go for. Now, let's get into pension, deferred compensation. Do we even know what would it cost for deferred compensation on the City part and from the pension retirement? 'Cause I see here for deferred compensation, City will contribute maximum allowed by law. I'm not exactly sure what that is. I don't know if it's under 55 years old, it's a 13 percent or an "X" amount, and over that is 16. I'm not exactly sure. But would like to know what's the dollar amount cost to the City so maybe we could, you know, determine which retirement or compensation -- deferred compensation or pension package we may want to, you know, offer. Do we have any numbers on this? Mayor Regalado: Mr. Chairman, ifI may. Commissioner Suarez: I think we should just eliminate it. Chair Gort: Yes. Commissioner Suarez: I think we should just eliminate it. Vice Chair Carollo: Huh? Mayor Regalado: Commissioner, just -- Commissioner Suarez: I think we should just eliminate it. Vice Chair Carollo: Or -- hold on, hold on. There's another -- I think there should be one or the other. Commissioner Sarnoff. Right. Commissioner Suarez: Look, the way it was structured with the City Attorneys -- let me -- 'cause I think -- Chair Gort: You structured that deal. Commissioner Suarez: -- this can be -- I think we can handle this right now, actually. The way it was structured with the City Attorney was that if the City Manager decided to eliminate deferred compensation, then it would be eliminated for her. That's the way it was structured in her contract andl have it here. Chair Gort: What was that again? Commissioner Suarez: It says employer contributes maximum allowed. In the event that the City discontinues or otherwise modes the deferred compensation plan offered to City executives or similar employees, then the City Attorneys deferred compensation shall be adjusted to be consistent with such discontinuance or modification. So if we were to discontinue it for the Manager, I presume he would discontinue it for people that are under him and -- or we could -- I suppose we could do that by some sort of -- some other kind of legislation, but it would also discontinue it for -- and don't know. I think maybe the City Clerk has the same provision so -- Mayor Regalado: Mr. Chairman, ifI may. Since we have many things in the agenda and since now we have like seven plans to discuss -- and of course the one that needs to be consulted is the City Manager because he needs to opine on that -- I would ask you to defer this and we can come back with the ideas of everybody and have a conversation, you know, more precise. But it seems to me that, you know, there is a difference in days and all that and different plans. And of course, it's about parity with what you approved for the City Attorney and it's a little City ofMiami Page 158 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 complicated. So if you allow us to talk to the Manager and then come back to you, maybe we can come back with some ideas knowing what you already say and that simplify things. Chair Gort: And with some of the questions been asked with the numbers -- of the affect on numbers. Mayor Regalado: Right, right, everything -- Chair Gort: How much would each one will cost. Mayor Regalado: -- that you have said will be looked at it in terms of numbers to be more precise so that's -- Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes. Mayor Regalado: -- if that is okay. Vice Chair Carollo: I will do what the will of this Commission is. You know, I would prefer to table it and let's start knocking this out because remember, in August we have no Commission meeting. I think -- I have a feeling that the next Commission meeting, one way or another, is going to get filled up again. I would like to get as many things done as possible, so I would prefer to table it and, you know, maybe later on today deal with it because I think this -- you know, this wasn't contentious. This wasn't -- Commissioner Dunn: No. Vice Chair Carollo: -- you know. I think we kind of -- Commissioner Dunn: We're close. Vice Chair Carollo: -- have a feel for where everyone is going, and I think right from the start this Commission has sort of like, you know, a consensus with just a few points. Chair Gort: We'll discuss. We come with a consensus -- Vice Chair Carollo: Right, right. Chair Gort: -- all the time so -- Vice Chair Carollo: So I think we should table it and maybe -- and I think Commissioner Dunn wants -- Commissioner Sarnoff.. I don't want -- Commissioner Dunn: No. I just -- Chair Gort: Commissioner Dunn. Commissioner Dunn: I just want -- Thank you, Mr. Chair. I think -- basically, I think we on the Commission are pretty close. So once we come up -- and this probably can be done today, Mr. Mayor. Vice Chair Carollo: Right. City ofMiami Page 159 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Dunn: Once we come up with our proposal or our offer, then it will be up to the City Manager whether he wants to table it or not, but think we're pretty close. Commissioner Sarnoff. You know, this -- Chair Gort: Commissioner Sarnoff. Commissioner Sarnoff. -- reminds me of you know, sitting in your dentist chair and you pass a bad comment to your dentist and you're thinking to yourself he's got a drill in my mouth. I mean, or pissing off your waiter before you get served. He's sitting right there, and don't want to prolong this -- Vice Chair Carollo: Exactly. Commissioner Sarnoff -- for very long. Vice Chair Carollo: Exactly. Commissioner Sarnoff. And you know, this is the man that when we're all done is going to make some of the hardest decisions that we're going to ask him to implement and make, andl want him -- I want to get this over with. I mean -- Commissioner Suarez: Mr. Chair. Vice Chair Carollo: Absolutely. Commissioner Sarnoff. -- I just don't think we're that far away. Vice Chair Carollo: Absolutely. Commissioner Sarnoff. Now if you want to table it 'til before the lunch break -- 'cause I really don't want this going on for very long. Vice Chair Carollo: Absolutely. Chair Gort: Right, I know. Commissioner Suarez: Mr. Chairman. Chair Gort: Yes. Commissioner Suarez: Yeah. I was just going to say that it's never pleasant when you're doing this. I mean, I -- Commissioner Sarnoff. It's negotiating in public. Commissioner Suarez: -- had to unfortunately negotiate with the City Attorney and it wasn't fun, but you do have to keep a lot of things in mind, such as we have, you know, pending contract negotiations and that has to be all put into the, you know, perspective. I don't think we're that far apart. I mean, I really could go either way. If it's, you know, the desire of the Commission to defer it, that'll be fine with me, but I think we can knock it out. I really do. Mayor Regalado: Okay, so we'll discuss with the Manager and bring it later on. City ofMiami Page 160 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. Can you bring it back, Mr. Mayor, before the lunch break 'cause I really --? I just don't want him -- if I'm the Manager, I don't want this guy consternating, fretting, whatever you want to call it, over lunch. I want to get this done. Vice Chair Carollo: And Mr. Chairman. Chair Gort: Yes. Vice Chair Carollo: I just -- and I just want to point something out that already said, butt want to say it again just for clarity. This isn't about Mr. Martinez. This is about, you know, the direction of the City, fairness, and making sure that, you know, we -- this Commission makes a correct financial decision so, you know. Andl do, I feel in an awkward position, as I think we all do, andl think that's why Commissioner Sarnoff said, yes, I think we want to take care of it as soon as possible. We're not that far away. Because I think we're all building that relationship with the new Manager and we're working closely with him and, you know, it's a little awkward but -- so thank you. Chair Gort: Thank you. We'll table it and come back just before lunch and bring it back. Mayor Regalado: Okay. [Later..] Chair Gort: Okay. We got about ten more minutes. Can we get some of the --? Commissioner Sarnoff. Can we knock out the Mana --? Is anybody up for knocking out the Manager's -- Commissioner Dunn: Mr. Chair. Commissioner Sarnoff. -- terms and conditions? Mayor Regalado: Do you want to do the Manager's benefit package now or later? Commissioner Sarnoff. That's what I would suggest. Commissioner Dunn: Yes, yes. Mayor Regalado: Okay. Commissioner Sarnoff. I don't want to give him indigestion over lunch. Mayor Regalado: I have talked to the Manager and there's several things that he's requesting and several things that the City Attorney will say to you. And number one, under deferred compensation, what he has is what the City Attorney has and the City Clerk. And if the Commission were to eliminate this in November in the new contracts that you all have to do with the City Attorney, the City Clerk, and hopefully when you hire an auditor general and you decided to take it away, his will go away. That's one issue. And the second issue is my -- well, the second -- the vacation -- the earned personal leave, the Manager will just don't use it. I mean, holidays, he has to work on holidays or not work on holidays, who knows. So -- and every employee in the City -- well, except us, we go to activities on holidays. And sick time is the same that every employee, and correct me if I'm wrong, gets. It's the -- that's the same number. We -- I don't get -- I don't know. I never -- in my check it says 00 vacation or -- so I don't get anything. And in terms of vacation, it's four weeks a year, which is 20 days, so he will accept going down from 27 to 20 days a year. And in terms of severance, well, that's a discussion that we asked the City ofMiami Page 161 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 City Attorney what is Florida law says about the severance. Julie O. Bru (City Attorney): I know we're going to deal with it when it comes to the APM that you had asked me to prepare for you as a ordinance, but just to let you know, the state of Florida authorizes you when you're entering into an employment agreement or a contract to pay up to 20 weeks of severance, and it also authorizes you to give 6 weeks of severance for settling an employment dispute, so the Manager's going to have a suggestion for you on that. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: Follow-up question to the City Attorney. Does the state statute anywhere says that we have to give a severance? Ms. Bru: It gives you the authority. Vice Chair Carollo: Right. And gives us the authority not to give a severance? Ms. Bru: You have that authority. Mayor Regalado: You want -- Mr. Manager, you want --? Johnny Martinez (City Manager): I thought Commissioner Sarnoff brought up a fair suggestion regarding the severance, you know, to sign the -- Chair Gort: Release. Mayor Regalado: It's one month. The Manager will say just one -- Mr. Martinez: I will sign anything like that. Mayor Regalado: One month and he'll sign anything, so he'll eliminate the four -month severance. Commissioner Suarez: Mr. Chairman, can I --? Chair Gort: Yes. Wait a minute. Mayor Regalado: And the vacation is 20 and -- well, that's it. Those are the changes. Vice Chair Carollo: You got your negotiator there. Commissioner Suarez: Mr. Chairman, may I? I think the actual number -- I'm okay with everything basically that the Mayor has said. I'm okay with the days, the sick. Really, when you make it a use it or lose it, which is, I think, what we're saying, right, use it or lose it? Vice Chair Carollo: Yeah, definitely. Commissioner Suarez: Then those numbers are not as -- Mayor Regalado: Right. Commissioner Suarez: -- you know, whether it's 20, 21, or 19, as long as there's no value to it. So I'm okay with that, the 20 and the 12. On the severance issue, I just wanted a little bit of City ofMiami Page 162 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 clarity because Commissioner Sarnoff had said one month but there's severances in all kinds of different categories. Is that with -- if it's for cause, for no cause. You know, what are we talking about exactly? Or just -- that's the only severance that's allowed regardless of what the separation is. Mayor Regalado: Well, if he -- if you ask me, I would put an amendment that says he cannot resign. He cannot be fired. He has to stay here so people won't say we got many Manager. But -- no I'm say -- what I'm saying is -- go ahead. Ms. Bru: His term sheet already provides that the severance is only if he leaves under honorable conditions. And let me suggest that we clarify that to track the state language and prohibit severance in the case of misconduct because that's what the state law requires us to do, and also clam it to not say a month because a month can have different numbers of days. So let's just go with what the state says of six weeks. I would suggest that. And also already in the term sheet it says he does not get severance if he resigns, so it would be only if you wanted to terminate him without cause and under honorable conditions, which would exclude any malfeasance, misfeasance, or misconduct. Commissioner Dunn: Mr. Chair. Chair Gort: Okay. Commissioner Dunn: Mr. Chairman. Chair Gort: Yes. Commissioner Suarez: I mean -- Commissioner Dunn: Go ahead, go ahead. Commissioner Suarez: I'm sorry. This was a big issue when we negotiated the City Attorney's -- I don't believe in severance. I don't. So, I mean, I think you have to convince me of that position. I may be willing to bend to the one month. I just don't -- I know it's been a past practice of the City. I don't think it's been a good practice of the City and particularly for high paying employees when it's -- Mayor Regalado: And Commissioner, the Manager will say it, but he has told me he's totally okay with one month and a release, so he's totally okay. He's not even asking for six week, so he's totally okay -- Commissioner Suarez: Right. Mayor Regalado: -- with one month. Commissioner Suarez: And that's what I'm saying. I think would have to yield to what would not be my preferred situation, but I think we're heading tremendously in the right direction in terms of going from something where we're talking about six months or forget about the stuff that happened that we were not privy to. But to this, I think it's a huge improvement. My preference is that there not be any severance in the future. And maybe as we look at and renegotiate those contracts, as the Mayor, said in the next few months, in November, maybe we can address that as well as the deferred compensation. The deferred compensation is something we have to address. I mean, it's just -- it's -- I said it before and I'm going to keep saying it. I agree with the Vice Chairman. It's just -- I don't know; when times were good, maybe that was something that they came up with, but the times are obviously not good and that's just -- City ofMiami Page 163 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mayor Regalado: Right. Commissioner Suarez: -- a supplemental payment. Mayor Regalado: And you have to by -- come November, you all have to negotiate three contracts, the City Attorney, the City Clerk, and the auditor general. And I'm the one that are bringing the only one that I can, which is the City Manager. And in case -- and it's right here. In case that this is eliminated by you all, then his is gone. But now you have the other one. Commissioner Sarnoff. But think, Mr. Mayor, what they want to do -- and correct me if I'm reading the board correctly -- want to set policy now. Commissioner Suarez: Well -- Vice Chair Carollo: Exactly. Commissioner Sarnoff. And what we do -- Vice Chair Carollo: I mean -- exactly. Commissioner Suarez: But I think the Mayor's making a good point and it was an issue that I had, which was whatever we change here, we're not going to be able to change in the other contracts, and that goes to the issue that Commissioner Dunn often brings up, which is fairness. We can't do it right now for all of them, so he's talking about what's going to -- Mayor Regalado: When -- Commissioner Sarnoff. But in November we can -- Mayor Regalado: -- it happens it goes for everybody. Commissioner Suarez: Right. Mayor Regalado: But what if you guys don't -- decided not to do it for the other people? Then there is no parity. Commissioner Suarez: And what I'm saying, ifI may, Mr. Chairman, just to finish my thought, is that think we're going in the right direction here. I don't think we're all the way there, from my perspective, and maybe that point we reach when we negotiate with all four people at the same time. But I'm willing to yield to this board if they want to -- Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: Thank you. You know, Commissioner -- andl mean, Commissioner Suarez -- you heard when I first started speaking. Severance, we were on the same page. I was against it. And in light of all that we have recently seen and -- at least this Commissioner andl have a great belief that the Commission had no idea or at least had -- were not privy to what was going on. So I was against it. However, in order to reach consensus, we need to have some flexibility. I think Commissioner Sarnoff, in light of finding consensus, proposed something reasonable, which was a month. My preference, I said it from the start before anyone said anything, I prefer no severance. However, you know, we're here as a team. I think that you all have seen my tenure here. I have always tried to reach consensus and work as a team. And although I side with you that I do not want to see any severance, I think in order to reach consensus, I would be City ofMiami Page 164 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 flexible and give him a month of severance. Commissioner Suarez: Would the board be willing to entertain this issue again in the November Commissioner Dunn: Yes. Chair Gort: Yes. Commissioner Suarez: -- which is what I think the Mayor --? Commissioner Dunn: Mr. Chairman. Chair Gort: My understanding is that -- excuse me a minute. My understanding is the severance, the reason it was created at one time is to make sure that someone gets out of here, first of all, they have to sign a release, which is very important. When you sign a release, you might be saving money in lawyers and lawsuits later on 'cause once you sign that release, you release the City of any liability. Andl understand that was the reason why the severance was created way back. Now it is going beyond what it should be. I believe one month is not a problem, but we have to make sure that before anything is done, they sign that release, which I don't know if it's been done in the past with the other severance that have taken place with all the officials that left the City, if they signed the release. That release is very important. Yes, sir. Commissioner Dunn: Go ahead. I'll yield. Commissioner Sarnoff.. Well, you know, we are facing four lawsuits from four very well-known previous employees. I'm not saying they're right, and I'm not even saying they're wrong, but the resources we're going to take necessary to defend those cases is a distraction to the business of this Commission. It will be a resource that the City Attorney has got to dedicate. When you can give her a tool and that tool is -- and Commissioner Suarez, I look at you on this because lawyers never get invited to weddings, but they go to all funerals. That means you never call your lawyer to say I'm having a great day, but you do call your lawyer when you say I'm having a bad day. When somebody is leaving the City ofMiami, you leave one of two ways. One, it's your happiest day of your life, you're retiring. The second is you're leaving the City ofMiami. Maybe it's for a better job. Maybe you're just leaving 'cause you're not satisfied. You're trying to give somebody a little incentive as opposed to when all the lawyers, Commissioner Suarez, start coming up to them and saying, hey, did you know something and did you get fired for that reason, and they start doubting themselves and they're going, yeah, I might have been fired for that reason. I'll represent you for free, but I'll take a contingency on whatever it is I can get, and I get attorneys' fees on top of that if I prove that. And this person, man or woman, is actually considering, well, you know what? It's not going to cost me anything. City ofMiami, you know who they are. Those guys are a bunch of you know, whatever, and now all of a sudden she's got number six, seven, and eight. All I'm suggesting is we keep the flexibility. They say -- at that very moment of separation, here is "X" dollars. It'll come out to whatever dollars it comes to. In his case it would be, I don't know, 10, $15,000. To get the 10 or $15,000 check which is right here, you have to sign this release that absolves the City ofMiami of all future issues with you, and we're done. It's over. Commissioner Suarez: Mr. Chairman, ifI may? Chair Gort: Yes. Commissioner Suarez: I think it's a good point, and it's one that I didn't have much time to think it through. This was just suggested right now. So I think, again, in going with what the Vice Chairman said, my initial inclination was not to be supportive of any severance. That's City ofMiami Page 165 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 something that's a position that I've taken since the beginning. I get what you're saying because, for example, with our former City Attorney we spent a quarter of a million dollars defending a lawsuit that we ultimately won, you know, but we spent a quarter of a million dollars. If we would have had $15, 000 at that point, I think from a business judgment perspective -- I'm not sure morally it was the right thing to do. I think we did the right thing because there were some other issues andl think we had to take a stand on certain kinds of activity. So I -- andl would like to think about it more, potentially readdress it when we do something that's in unanimity with all the other actors, and I think we should -- and I think this is something that --this is kind of an informal promise that I made to the City Attorney when I negotiated with her. I said, look, I promise you that whatever I negotiate with you, I will always advocate to fairly apply that to others. And we kind of agreed with that andl feel like I've, you know, followed through on that. So I do get it. I need to think about it more, but I do get it andl agree with you. I don't know about the deferred comp, whether we'll address that now or whether we'll address that in November. Commissioner Sarnoff. Well, I -- and let me -- 'cause I'm (UNINTELLIGIBLE) -- Commissioner Suarez: I'm willing to yield. Commissioner Sarnoff. I think what we should do -- look, he gets -- deferred compensation can be a significant part of his compensation package. It could be -- on this number, it could be $40,000. It could be more than that. And yet, he can also get pension. You've got to choose. Vice Chair Carollo: Right. Commissioner Sarnoff. It's one or the other. You cannot get both. Andl don't know what is -- and you know what's sad is, I'd like any Joe Citizen to be able to pick this up and say, okay, he makes $195, 000 a year. I can compute in my head, just by doing addition and subtractions, what he gets. Now all of the sudden, I've got percentages, did he take it, didn't he take it. It should be that simple. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: You threw a new wrench in there 'cause if you really want to be able to do that, we need to know what's the cost of two times his annual salary for accidental death. We need to know what's the cost of two times his annual salary for life insurance. We need to know what's the cost of the health, vision and dental, so you threw a wrench in there. You know, again, andl hate to be the bearer of bad news, you know. I started this discussion, you know, saying that this contract was way too rich and too luxurious, but I mean, if you want to get to those points, I would love to. I would love to be able to just sum it all up, get a calculator and say, okay, here's his total package. We really don't have this, you know, but we're working with what we have. Now was some of this given to other employees? The City Attorney, City Clerk? Yeah, they were similar. So do we want to go that route or not? That's up for discussion. I think we were pretty close. It's up to the will of this Commission. I could already start making a motion. I could see where a lot of this is going and, you know, if you so wish, I will make a motion and we'll go down each -- Commissioner Suarez: Category. Vice Chair Carollo: -- category and -- Chair Gort: Make it. City ofMiami Page 166 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Dunn: Second. Vice Chair Carollo: I make a motion -- Commissioner Dunn: Second. Vice Chair Carollo: -- to approve a benefit package for Mr. Johnny Martinez, our City Manager. The salary be an annual salary, payable biweekly, of $195, 000. The car allowance will stay the same at 800 per month. The cell phone allowance will stay the same at 200 per month. The insurance will be as stated on the document in front of us, an executive physical. Here's where we really start changing. Leave time. Vacation, I think we stated before we were going to take the middle but, you know, we could do 20. Commissioner Suarez: Twenty. Chair Gort: Twenty. Commissioner Dunn: Yes. Vice Chair Carollo: Twenty? Okay, 20 vacation -- Chair Gort: Wait a minute. Twenty days and cannot take more than two weeks at one time. Not all 20 days at -- Vice Chair Carollo: Madam City Attorney, can we put that -- Commissioner Suarez: Condition. Vice Chair Carollo: -- stipulation? Johnny, careful. This Commission is kind of -- we're going in the right direction, but -- Commissioner Suarez: Don't go to Europe. Vice Chair Carollo: Careful, don't try us. Chair Gort: Remember, when we were talking about your nomination, I told your wife to forget about you because that position, you can't afford to be away four weeks. At least that's my -- Vice Chair Carollo: So in other words, what you're saying, Commissioner -- Chair Gort: You'll be bored. Vice Chair Carollo: Commissioner Gort, what you're saying is total vacation day is 20 per year but cannot take more than two weeks in a row -- Mr. Martinez: Can we make that three? Vice Chair Carollo: -- ten days in a row. Mr. Martinez: I mean, there's four. I mean, I probably won't do it, but just in case I go to Europe or something, you know. Commissioner Dunn: Give him three. Vice Chair Carollo: Commissioner -- City ofMiami Page 167 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Europe's too expensive now. Vice Chair Carollo: Commissioner Gort. Chair Gort: Make it three. Mayor Regalado: I don't think that -- Vice Chair Carollo: Okay. Chair Gort: Three. Mr. Martinez: Three. Mayor Regalado: I mean, you trust his judgment, come on. Chair Gort: Three. Mayor Regalado: It's -- this is -- Chair Gort: Three. Commissioner Dunn: Three. Mayor Regalado: It's a little -- Vice Chair Carollo: Okay, and just to confirm and reiterate, vacation will be a maximum of 20 days per year and cannot take more than 15 -- Commissioner Suarez: Consecutive. Vice Chair Carollo: -- consecutive days. Chair Gort: Right. Vice Chair Carollo: Sick time, 12 days per year I think has been the norm for every employee in the City ofMiami. Earned personal leave, none. Holidays, 11 days per year I think is the norm for every employee. Now -- and this is one of those where I will stay firm and there is no flexibility in this one. Upon honorable separation, it will be a use it or lose it policy and the City Manager shall receive no payment for any unused vacation or sick leave. Severance, I think ifI read my colleagues, the one month with -- how -- I will yield to -- Commissioner Suarez: The waiver. Commissioner Sarnoff. Full releases. Vice Chair Carollo: -- with full releases. Chair Gort: With full releases. Commissioner Sarnoff. In favor of the City ofMiami. Vice Chair Carollo: Say it one more time, Commissioner Sarnoff. City ofMiami Page 168 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. Full releases in favor of the City ofMiami. Vice Chair Carollo: Okay, it will be a one -month severance with full releases to the City of Miami. And then we either have deferred compensation or a pension retirement plan. We could either give him an option to choose or we could choose for him. What's the will of this Commission? Commissioner Sarnoff. Let him choose. Vice Chair Carollo: Okay. Hold on, hold on. There's a second step now. If we let him choose, do we stipulate what's in this schedule before us? In other words, in the pension retirement plan the City shall contribute at the rate of 20 percent to the City Manager's annual salary. Do we keep it here or do we reduce it? And in the deferred compensation, we have the City will contribute maximum allowed by law. Mayor Regalado: I suggest that you leave that to the Manager so he can choose either one. It's too premature to -- for him -- I don't know. Vice Chair Carollo: Right. I understand, Mr. Mayor. Mayor Regalado: No. I understand what you're trying to do in terms of 20 percent, but -- Chair Gort: The 20 percent contribution. Mayor Regalado: -- I think that you give that -- you gave that to the City Attorney, right? Vice Chair Carollo: No, we did not. Commissioner Suarez: What we did with the City Attorney was we said that if it's eliminated, then it's eliminated for her as well. Mayor Regalado: Right. Commissioner Suarez: And so, you know, again, I didn't want it in there. I think it should be eliminated. Vice Chair Carollo: Both the City Attorney and the City Clerk receive a deferred compensation. Commissioner Suarez: Right. Vice Chair Carollo: Employer contributes maximum allowed by law -- Commissioner Suarez: Right. Vice Chair Carollo: -- similar to what is there. So my question is, if we give him the option, that's not the option of how much we're going to contribute. It's either -- Commissioner Sarnoff. I think the reason the option exists is because City Managers historically don't last long enough to vest in the pension system. So I think that's why the option -- well, no. That's why they got both. Let me put it to you like that. And he would make history if he were to actually make the pension, so if we leave him the option but not both, we can anticipate an approximate 20 percent of his salary would go towards, let's call it retirement. It'll either be a pension or it will be a 401 a. Mr. Martinez: I can choose now, if you want. The latter -- City ofMiami Page 169 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Go ahead. Mr. Martinez: -- the 20 percent contributing. Commissioner Suarez: Yeah, the pension. Commissioner Sarnoff. Okay. Commissioner Suarez: What happened was -- Vice Chair Carollo: He wants the pension. Commissioner Suarez: -- historically -- my understanding on investigating this issue is historically to beef up salaries, they did this deferred compensation. This was what my chief of staff would call an on -the -side, so it was kind of a bump up and then they would take that and it was just extra money. It was just put away in an account -- Commissioner Sarnoff. Right. Commissioner Suarez: -- tax -deferred and that's it. Commissioner Sarnoff. And that's the 401 a, right. Vice Chair Carollo: So what he chooses is the pension retirement plan, so we'll say the pension retirement plan as stated in this schedule. Chair Gort: Correct. Vice Chair Carollo: I do want to mention the COLA (Cost of Living Allowance). I want no COLA. I don't know what's the will of this Commission. Mr. Martinez: Commissioner. Vice Chair Carollo: My preference is no COLA. Chair Gort: No COLA. Vice Chair Carollo: You'll waive -- you don't want -- Chair Gort: No COLA. Vice Chair Carollo: No COLA. Chair Gort: That's right. Vice Chair Carollo: Mr. Manager, will you accept the no COLA? Mr. Martinez: I think should be treated like the rest of the population that if other executives are going to be getting the COLA and things like that, I don't think should be excluded. Chair Gort: Nobody's going to get it. Vice Chair Carollo: What's the will of this Commission? City ofMiami Page 170 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Suarez: I -- look, I think the bottom line is here we have negotiations that we have to engage in, andl think that it could go either way. You could either try to set the example or you can say whatever you negotiate for them -- or you could say whatever you negotiate for them is what you get, or you could say I'm going to set the example and I'm going to do this and then puts us in a, you know -- I don't know. It's up to you. I leave it to you. Vice Chair Carollo: I would rather set the example. And again, you know, there are different times, you know. We're in a time now that, you know, realistically, you know, the City isn't as well -endowed with money as it used to be. So I say we set the example now. Commissioner Suarez: I don't have a problem with that. I'm not a big fan of the COLA, but if -- I hope you mean that you're going to be consistent. I'm assuming that you mean you're going to be consistent not only with the City Manager but in your position as it relates to all employees. Vice Chair Carollo: And again, it's not just me. It's the will of this Commission. The one -- you saw where my main firmness was with the lose it or -- use it or lose it, and at the same time that this contract was way too rich andl will not vote for it. So I think we're already setting a good example that whatever is presented to us, we are not going to rubberstamp. We are actually going to debate it, and just because it's presented to us doesn't mean that we will agree with it. As far as the COLA, the will of this Commission. Commissioner -- Commissioner Dunn: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Dunn: I will make a second on that motion with the exception I would like to give the Manager the option of the COLA. That's where I differ. Vice Chair Carollo: He's going to take it. Commissioner Suarez: Wait, wait, wait, wait, wait. Time out. What -- I think we should just leave it as is. Commissioner Dunn: Okay. Commissioner Suarez: How it is is if it's given to classed or unclassified employees, then he's entitled to it. If it's not -- if we decide at some future date that the COLA is not something that we should be giving, then it is kind of the same thing as the deferred. Commissioner Dunn: That's fine. That's consistent. Vice Chair Carollo: Could we take a little straw --? Commissioner Sarnoff, you okay? Commissioner Sarnoff. I'm actually -- I agree with you. I don't think COLA should be a part of it. I was hoping he would voluntarily agree to that. Vice Chair Carollo: So did I. Commissioner Gort. Commissioner Suarez: Andl have no problem -- Chair Gort: He's -- I think he's -- Commissioner Suarez: -- with that. Chair Gort: -- agreeing not to have the COLA. City ofMiami Page 171 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Suarez: I have no problem with that, with the exception that that should be a consistently applied policy 'cause that's -- Chair Gort: Yeah. Commissioner Suarez: -- my position. Chair Gort: That's going to be the policy. Commissioner Sarnoff. Agreed. Commissioner Suarez: Okay. Commissioner Sarnoff. This is the first time this -- any other Commissioners have ever listened to me with use it or lose it, COLA. I mean, this is -- Commissioner Suarez: I just want to make sure that everybody's on -- Commissioner Sarnoff. -- how you start saving money. Commissioner Suarez: I want to make sure everybody's on board and clear that we are setting the policy, that we do not favor COLAs. That's it. Everybody's on board. What we -- what's good for the goose is good for the gander, like -- Commissioner Dunn: True. Commissioner Suarez: -- Commissioner Dunn says. Commissioner Sarnoff. Across the board. Chair Gort: Right. Commissioner Dunn: Consistent. Chair Gort: Okay. Commissioner Suarez: Sure. Vice Chair Carollo: So -- Commissioner Suarez: I'm good with that. Vice Chair Carollo: -- there will be no COLA -- Chair Gort: No COLA. Vice Chair Carollo: -- in your contract. Commissioner Suarez: I'm good with that. Mr. Martinez: That's fine, consistent with other executives that won't be receiving COLA. Commissioner Suarez: No, and other employees, not just executives. City ofMiami Page 172 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Martinez: Employees. Yeah, that's fine. Commissioner Suarez: All right. Mr. Martinez: But if they do? Commissioner Sarnoff.. Then this Commission wasn't acting -- Vice Chair Carollo: Johnny -- Commissioner Sarnoff.. -- consistently. Commissioner Suarez: Exactly. Then -- Commissioner Sarnoff.. Andl can tell you, this Commission's going to -- Commissioner Suarez: -- we're not acting consistently. Commissioner Sarnoff.. -- act consistent. Commissioner Suarez: Then we're saying one thing today and we're saying something different tomorrow. Chair Gort: Okay. Commissioner Suarez: That's on our conscience. Chair Gort: There's a motion and there's a second. Further discussion? All in favor, state it by saying "aye." The Commission (Collectively): Aye. Mr. Hannon: And that is as amended. Vice Chair Carollo: As amended. Chair Gort: As amended. Commissioner Dunn: As amended. Mayor Regalado: Yeah. Andl want to -- Commissioner Sarnoff.. As amended, as modified, as discussed. Chair Gort: The whole works. Mayor Regalado: Andl want to thank you guys because this gives continuity to the City of Miami. Remember, the City Commission sets the salary of the Mayor, andl remember when Joe Arriola was Manager and Johnny Winton was a Commissioner. It was at almost midnight and they say, well, it's time for the Christmas gift, and they propose a $53, 000 raise to then Mayor Manny Diaz, and you know, it was okay. No one questioned that. That made his pension went up forever. So this is why I took a cut. I took the biggest cut of any employee in the City of Miami, $53,000, and resigned the $800 a month car allowance. And this is what we want, leading by example. The former Manager, Pete Hernandez, made more money -- and actually, I think Johnny, as an engineer, has 30 years experience in the public sector so this is a sign of the City ofMiami Page 173 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 D2.1 11-00618 times, andl guess that it's important that we send the message because now when we have to take hard decisions, you know, employees won't say, hey, these bosses, they make a lot of money. They don't. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: One last question and it's to the City Attorney. Madam City Attorney -- and I just want clarification and certainty. The Commissioners are the ones that approve the whole compensation package for the City Manager, correct? Ms. Bru: That's correct. Vice Chair Carollo: Okay. Any other person that would try to negotiate any other type of compensation, admin leave, all that is, one, improper, and two, non -enforceable, correct? Ms. Bru: There is a provision in the charter that talks about the City Commission being the entity -- Vice Chair Carollo: The sole -- Ms. Bru: -- that -- Vice Chair Carollo: Okay, so this is his compensation package so he should not expect or believe that any other person in the City could provide any other type of compensation or administrative leave or health insurance or any of that sort, correct? Ms. Bru: This is the full and complete terms of the benefit and compensations being afforded to him. Vice Chair Carollo: Thank you. END OF CITYWIDE ITEMS DISTRICT 1 CHAIRMAN WIFREDO (WILLY) GORT END OF DISTRICT 1 DISTRICT 2 COMMISSIONER MARC DAVID SARNOFF DISCUSSION ITEM DISCUSSION ON WHY PROPERTIES DEMOLISHED AND EMPTY LOTS SHOULD BE MAINTAINED IN A"PARK LIKE" MANNER. 11-00618 Email - Properties Demolished.pdf NO ACTION TAKEN D2.2 DISCUSSION ITEM City ofMiami Page 174 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 11-00619 DISCUSSION REGARDING AN OVERVIEW OF ALL THE CURRENT IT PROJECTS. 11-00619 Email - Current IT Projects.pdf NO ACTION TAKEN END OF DISTRICT 2 DISTRICT 3 VICE-CHAIRMAN FRANK CAROLLO D3.1 DISCUSSION ITEM 11-00624 D3.2 11-00625 D3.3 11-00627 UPDATE ON THE HIRING FREEZE AND EMPLOYEES HIRED AFTER THE FREEZE. 11-00624 Email - Update on Hiring Freeze 07-28-11.pdf 11-00624-Submittal-New Hires According To Local 1907 From May 7, 2009-June 8, 2011.pdf 11-00624-Submittal-City Manager Report Of New Hires FRom May 7, 2009 Through July 11, 2011 DEFERRED Note for the record: D3.1 was deferred to the Commission Meeting scheduled for July 28, 2011. DISCUSSION ITEM UPDATE ON INSURANCE COSTS, SAVINGS SINCE APPROVING CONSULTANT, AND BENEFITS TO CITY EMPLOYEES. 11-00625 Email - Update Insurance Costs 07-28-11.pdf DEFERRED Note for the record: Item D3.2 was deferred to the Commission Meeting scheduled for July 28, 2011. DISCUSSION ITEM DISCUSSION ON THE AUDITOR GENERAL. 11-00627 Email -Auditor General.pdf DISCUSSED Direction by Vice Chair Carollo, with the consent of the City Commission, for the Administration to authorize the Employee Relations Director to post an RFQ for the position ofAuditor General. City ofMiami Page 175 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Direction by Vice Chair Carollo, with the consent of the City Commission, for the Administration to authorize the Employee Relations Director to assign the most Senior Staff Auditor within the Office of Auditor General to serve as interim supervisor while a search is conducted for a new Auditor General, further directing that the City Commission be informed of the interim supervisor's name once assigned. Vice Chair Carollo: Any other? I have a long list of discussion items. However, I am going to defer all my discussion items, for the exception of two that need to bring up, and give me a second so I can get the folder where I have them. The first discussion item I want to bring up is discussion item D3.3, which is discussion on the auditor general. As you all know -- and remember, the contract was not renewed. Time was very scarce. Our auditor general came to us at a last minute and, realistically, like I said, time was very scarce. I periodically informed this Commission of where I was with it, but the bottom line is that the 60 days ran out and his contract was not renewed. I do feel, after 12 or numerous years, that we should have afresh set of eyes looking at our financials, you know, control issues, and give added value. With that said, I want to see if our Employee Relations director can come before us. There's a few questions that I have. Name for the record, ma'am. Beverly Pruitt: Beverly Pruitt, director of Human Resources. Vice Chair Carollo: Thankyou. The question thatl have, what's happening currently with the staff of the former auditor general? Ms. Pruitt: The staff is still in place. They have given a list of projects that they're currently working on and that list has been passed on to the City Manager's office. Vice Chair Carollo: All right. So they are still working at the present time? Ms. Pruitt: Yes, sir. Vice Chair Carollo: What is the will of this Commission? I definitely think we need to move in an expeditious matter [sic]. But at the same time, careful because, remember, the contract is a four-year contract. So I have had one person already reach out to me that is interested with wide range of experience. But at the same time, this isn't, as you all know, a Commissioner thing; this is a Commission, so I wanted to hear from all of you, if you want a national search or not, or what you all thought. Commissioner Dunn: Mr. Chair. Vice Chair Carollo: Commissioner Dunn. Chair Gort: Yes, sir. Commissioner Dunn: Thankyou. Couple of points that wanted to make that would like for us to consider as a possible course of action. I just want to -- and you stated that -- make sure that all the Commissioners would have full participation in the process of selecting an auditor general. But then one of the things I believe -- and you talked about moving expeditiously. I don't know what the will of this Commission is, but I would proffer the idea or thought of us possibly moving expeditiously to appoint or getting a supervising auditor general that should possibly be selected from the three senior auditors that we have until a permanent auditor general can be selected. In other words, we won't be bound by the four-year contract, but at least we can keep moving. Just a recommendation. Vice Chair Carollo: Thank you, Commissioner Dunn. And Madam City Attorney, is that possible without the perception that he is entering into a four-year contract or --? What's your City ofMiami Page 176 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 interpretation about that? Can we do what Commissioner Dunn is saying? Please give us your input. Julie O. Bru (City Attorney): Yeah. I think that right now you are in the process of filling a vacancy in an office, but you find yourselves with a staff that is left over from the prior auditor general. Now the charter speaks about the staff being a staff that is selected by that person, by the auditor general. But nonetheless, they have projects that they're working on. They're getting paid. Andl think that there needs to be some control, some supervision, some accountability so that we don't have any situation of employees just, you know, not showing up for work and getting a pay check. So I think what -- Vice Chair Carollo: Of course. Ms. Bru: -- Commissioner Dunn suggest that there be some kind of delegation of additional responsibilities to one of those individuals in the role of a senior auditor or supervisor of that staff without any kind of designation of that person as an interim or anything like that. They're just supervising the current staff. Vice Chair Carollo: So what you're saying, the most senior person there and -- Ms. Bru: Well -- Vice Chair Carollo: I don't know any of these auditors, to be honest with you. Ms. Bru: No. Vice Chair Carollo: The most senior person there maybe act as supervisor, not necessarily the auditor general, but -- Ms. Bru: I think that would be something that would be available to you. Vice Chair Carollo: And that's definitely reasonable. Commissioner Gort. Chair Gort: I think it's very important to understand, especially for the public, that the internal auditor -- the Office of Inspector General reports to the City Commission. Discussion and assigning someone to temporary charge of the office I think is very important to do so. Now how are we going to review the application for the new individualI think is very important too. We can set up a committee that can -- people that are knowledgeable in the industry and a CPA (Certified Public Accountant) is even better. I think we have an audit committee. I don't know how function they are. I got to ask the Finance Department. We do have an audit committee, and I don't know if you want to do the process through the audit committee. But I think it's very important that the person that comes in -- when you look at the City charter -- and I want people to understand that. This internal [sic] audit [sic] works for the City Commissioners. He works for us. The AIG [sic] shall be responsible to provide independent oversight of audit functions and for performance of such other duty as may be assigned by the City Commissioner or any member of the City Commission. I think it's very important to understand that, that it only has the fiscal responsibility of the different departments within the City ofMiami, but also the performance of those departments. That's something that needs to be -- whoever we hire, we got to make sure he understand what his duties are and what his performance have to be. Because a lot of the duties supposed to have been done by the internal [sic] audits [sic], it was being done by my office. So I think this is something that we really have to make it very important, that the person we bring understand the procedure. He also needs to understands [sic] that he works for the City Commissioner [sic] and he reports to the City Commissioner [sic]. Vice Chair Carollo: Thank you, Commissioner Gort. Commissioner Suarez. Commissioner City ofMiami Page 177 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Sarnoff. No? Commissioner Sarnoff.. I think we should just do -- you know, candidly, I think we should do a national search. I mean, we've refrained on all of the -- we just haven't done a national search. I'd like to see what's out there. I'd like to see the guy you know apply. If -- every one of us, I'm sure, know a CPA; we could form a committee. Five, that's a good number. And they can vet the applications. Vice Chair Carollo: And I'll tell you what. Let's -- if Ms. Pruitt could come up again. Andl think the direction is to start either some type of posting or an RFP (Request for Proposals) or -- I don't know what's the right terminology. Commissioner Sarnoff.. Isn't it an RFLI (Request for Letters oflnterest), request for -- Vice Chair Carollo: Whatever the -- Commissioner Sarnoff.. -- RFQ (Request For Qualifications) or something. Yeah. Vice Chair Carollo: -- terminology is. We'll discuss it now. We'll figure it out now. And get that started because we definitely want to move, you know, as rapidly as possible. But at the same time, I think we want to be cautious because it is a four-year contract. And let me tell you something. I mean, in all fairness, you know, one of the things that was taking time and so forth is looking at the contract and some of the items there. And that special -- that $10 million one-time special pay account is going to get hit pretty hard now that Mr. Igwe is gone. And by the way, you know, I invited Mr. Igwe to also apply to this. But the truth of the matter is, you know, at least I'm looking for at a set of fresh eyes, but I do ask him to apply. I didn't have much contact with him, except, you know, every once in a while he would call me and tell me, hey, you're doing a good job, you're asking the right questions, and so forth. And had a good relationship with him. So I think the direction from this Commission is to move on expeditiously. I don't know what's the right terminology, RFP, IR -- whatever, but the bottom line -- Commissioner Sarnoff.. RF -- Ms. Bru: To request -- RFQ, right? Commissioner Sarnoff.. RFQ, right. Ms. Bru: Request for qualifications. Commissioner Sarnoff.. Right. Chair Gort: Yes. Ms. Pruitt: We would just do it as a posting, as a job posting for the City, and it would be posted in the industry, magazines and publications and newspaper, at the will of the Manager, how he wants to direct that. Vice Chair Carollo: And now that I'm seeing the will of this Commission, the way we're going, you know, maybe next Commission meeting, unless you want to do it right now, you know, we could come back with some names for a committee or maybe even look at the audit committee and include them in it, or maybe I will visit the audit committee and get their suggestions and so forth and see where we're at so we could form the selection committee process. Ms. Pruitt: Okay. City ofMiami Page 178 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: And somehow also make sure that all of us have some type of participation and so forth since they will be working for us. And -- Chair Gort: At this time, I don't have the chart with me, but there was a chart that tells the seniors accountant or the senior individual -- 'cause I think we should go ahead and name someone today for the interim position. Vice Chair Carollo: Exactly. And the second part will be as far as the most senior person, andl don't know who that person is. Maybe they can take somewhat of a supervision role over the other auditors. It seems like they all have certain cases that they're working on, andl think that's the will of this Commission, and that's the direction that think we want to ask you to take. Ms. Pruitt: IfI may clarify. Your use of the word senior, are you referring to the person who has the highest classification within the department and also the number of years in that classification -- Vice Chair Carollo: Good point. Ms. Pruitt: -- as a senior member of the staff? Vice Chair Carollo: Good point. Is it a possibility -- Chair Gort: The highest -- Vice Chair Carollo: -- that it's one in the same? Is it a possibility that it's one in the same? Ms. Pruitt: It is possible. I'm not looking at the list currently, but there could be someone in a lower classification with more years in the department; however, they're not at a senior level analyst position. I would need to look at the list of people who have the most senior classification within that department and then how -- which of those has number of years. Chair Gort: My apologies. I thought I had that in here, but I don't. But -- Vice Chair Carollo: To move most prudently, I would think it would be the most senior in classification. And if there's two in the same classification, then you take it the next step -- Chair Gort: The years. Vice Chair Carollo: -- as the most time on -- Ms. Pruitt: Yes, sir. Vice Chair Carollo: -- you know, seniority as far as time in the department. Luis Cabrera (Acting Chief of Operations, City Manager's Office): That's correct, sir, exactly. Vice Chair Carollo: And that's how I would do it. Chair Gort: And will you let us know what the person is and -- Ms. Pruitt: Yes, sir. Chair Gort: -- inform us, please. Ms. Pruitt: I will. City ofMiami Page 179 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Okay. Vice Chair Carollo: And just keep us abreast of what's going on. Worst -case scenario, I'm going to have a discussion item next Commission meeting again. Ms. Pruitt: Okay. Vice Chair Carollo: So worst -case scenario -- Ms. Pruitt: We'll have an update. Vice Chair Carollo: -- it will be two weeks, but before that, you know, let's have some communication with that. Andl will see as far as the schedule for the audit committee andl would reach out to them and get their opinion and so forth and maybe come up with some type of selection committee and we will bring it back -- I will bring it back as a discussion item at the next meeting. Ms. Pruitt: Okay. Vice Chair Carollo: Sounds good? Chair Gort: Okay. D3.4 DISCUSSION ITEM 11-00628 D3.5 11-00629 POSSIBLE FOLLOW UP REGARDING NEXT YEARS BUDGET (2011-2012). 11-00628 Email -Budget FY (2011-2012).pdf DEFERRED Note for the record: Item D3.4 was deferred to the Commission Meeting scheduled for July 28, 2011. DISCUSSION ITEM UPDATE ON THE NEGOTIATIONS WITH THE FOUR UNIONS. • LOCAL 871 • LOCAL 1907 • FOP • IAFF 11-00629 Email - Update Negotiations Four Unions.pdf DISCUSSED Chair Gort: Welcome to the afternoon session of the City ofMiami meeting. At this time, I have a couple of requests. One is from the -- Mr. Mattimore. I think he's going to make a presentation on the status of the negotiation. City ofMiami Page 180 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff. Which item is this? Vice Chair Carollo: And that's part of D3.5, correct? Chair Gort: Right. Vice Chair Carollo: D3.5. Yeah, it's a discussion item that I had, so I just want to make sure we mark it off so we could take it out of the list. Commissioner Sarnoff. What page is that? Does anybody have a page? Vice Chair Carollo: It's my -- Commissioner Sarnoff. I got it, I got it. Vice Chair Carollo: -- discussion items. Chair Gort: D3.5. Commissioner Sarnoff. Page 43. Michael Mattimore: Thank you, Mr. Chairman, members of the Commission. It's nice to be here this afternoon. We -- I'd like to start by giving you some status on how we're doing in collective bargaining. As the budget picture has firmed up over the last couple of weeks, we've been provided with some targeted goals as to what we think we can go to the table and obtain some kind of agreement that would address the budget hole, for want of a better word, that we heard about earlier today, and avoid some of the things that were in the proposed exercise budget, like furloughs. We went to the table about a week ago with the representatives of the IAFF (International Association of Firefighters), and we met with them a second time. We were able to reach agreement on 25 articles -- that whole contract is open. That leaves about 15 to 20 articles left. We have another bargaining session scheduled for next Saturday. We believe that we're going to be able to close out all but a few of the articles that -- economic articles with the IAFF. The two meetings we've had have were very productive, very cordial. What we went into the meeting and asked the IAFF to do is to think of ways in which they could propose that there could be some cost savings. Andl anticipate through the next week and at our Saturday session, they're going to identify some of those cost savings and we're going to analyze those. At the same time as this figure firmed up, we met with the representatives of the Fraternal Order of Police. We've met with them on two occasions in the past two weeks. We went into those negotiations with all of the contract articles agreed upon except for eight articles. Yesterday we transmitted to the FOP (Fraternal Order of Police) four additional articles that we believe will be closed out. So we're looking at only four articles left for the police, that being vacation, wages and pension. We also asked the Fraternal Order of Police if they would come up with some ideas as to how they -- we could realize cost savings. And they have already come up with two, and they have promised me that tomorrow or on Monday they're going to give me some additional ideas. We've brought these ideas back and they're in the process of being analyzing now, but we're ready to respond and to analyze them. So in -- with both Fire and Police, we've had productive, cooperative conversations over the last couple of weeks. We're on the path, I think, to reaching some kind of manageable resolution and hopefully an agreement. And through that, we're able to avoid the furloughs and avoid some of the other cost -saving operational issues that we've heard earlier today. Technically, with AFSCME (American Federal of State, County and Municipal Employees) 1907, we are at impasse. We have been at impasse with them for a couple of months. Vice Chair Carollo: Months? City ofMiami Page 181 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Mr. Mattimore: Months. Several months actually. We had a session with the ASCME 1907 about six weeks ago. We were hopeful that at that session we were going to have a contract. An issue came up on that -- at that -- on that session. And ifI can characterize it for you as kind of a change in course for 1907, which they're certainly legally able to do. Up until that point, we had negotiated with them a no -layoff clause for their contract. And they came to that session and they said that they were no longer valuing or interested in that particular clause, but instead they would like for us to consider a wage increase. And -- Chair Gort: To consider -- I'm sorry? Mr. Mattimore: A wage increase. What they would like to have restored is one of the wage matters that were frozen on August 31, 2010, like the longevity or the step increases. We've taken that back. We're still on track on -- at impasse for 1907. We've been in conversation with their attorney and it looks as if we're -- might have an impasse hearing for 1907 on August 8, 2011. I contacted counsel for 1907 yesterday, and talked with Mr. Hatten today. We're going to attempt to schedule a bargaining session for next Friday afternoon and possibly get back on track and maybe resolve that impasse and resolve that contract. With 871, which is the Solid Waste employees, we TA'd a contract with 871 in December of 2010. By that I mean we actually reached agreement at the table on all of the issues. We brought that back. When there was a change of manager, the new manager expressed concern about the fact that the 871 contract had a no -layoff clause for 2010/2011 and decided that he did not want to proceed with the contract with the no -layoff clause contained in the contract. We contacted 871 and told them that our position on no layoff had changed and that we were no longer interested in that contract and that we had to return to the bargaining table and continue negotiations. Instead, 871 held a ratification vote and ratified the contract, and then asked us to ratify the contract. What we have -- how we responded over the past four or five months is to ask 871 to come back to the bargaining table so we could talk about the status of the contract and the ratification. We probably have authored in writing four or five letters to 871 asking for this meeting, but 871 has not responded to give us a date to come back to the table, but instead their response is just to continue to request that we ratify the agreement as it currently -- as it previously existed before the Manager decided to rethink the no -layoff language. So that's the status of 871. Chair Gort: Okay. Todd Hannon (Assistant City Clerk): Chair. Excuse me, Chair. Can I get the speaker's name for the record? Mr. Mattimore: Yes. It's Michael Mattimore, with the law firm of Allen Norton & Blue. Mr. Hannon: Thank you. Chair Gort: Thank you. Sorry, I forgot about that. Questions? Vice Chair Carollo: I guess I'm just a little surprised with the impasse with Local 1907. I was under the impression -- andl don't know if it was on the radio that heard it or what, that we were two or three days away from signing a contract with them. So I guess this is the purpose of bringing it up as a discussion item here so we get all the facts out and we know exactly what's going on and not be in the dark. The only other question that I have is do you feel comfortable now with the numbers that you've been provided as far as from the Administration, the City, as far as where we're heading with the unions? Mr. Mattimore: Yes, Commissioner. I'm comfortable with the numbers. I'm comfortable with what we need to target as our goals. Let me go back to 1907 for just a second. The impasse with 1907 is 1907's impasse. They declared it; the City did not. City ofMiami Page 182 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: When was this, though? Two months ago? Mr. Mattimore: No. They declared the impasse probably back in -- it's probably been six or seven months ago. But after they declared impasse, instead of going through the impasse process, we went back to the table, and then I thought we had reached a point where we, with the no -layoff clause, had a contract. But as I said, they're legally able to do it. They rethought their position, which is their right. And -- so we're technically on track for an impasse. But hopefully, if we can schedule a meeting in the next week or two, we can get back on track for a contract instead of an impasse. Commissioner Suarez: Mr. Chairman, ifI may. Chair Gort: Yes, Commissioner Suarez. Commissioner Suarez: I just have one question. How do you feel about the timeline of how things are progressing? Mr. Mattimore: Considering the goal that we have and the response that I feel we're receiving from the unions, I'm very comfortable that this is a manageable course, that we're doing well. I mean, it's getting tight, but you know, there's a time for negotiating and resolving and you need to have all the numbers and you need to be close enough to be really shooting for an accurate budget before you really can make the deal and now's the time. So if we focus on it in the next couple of weeks, I think we're in good shape. Vice Chair Carollo: And just follow up, that's why I wanted to make sure about the numbers. I think last time we spoke, you know, there were issues with regards to the numbers and did you actually have them or not or, you know, how could you negotiate if we don't know what the number is and so forth. So do you feel comfortable now with the number? I think you've already answered. Mr. Mattimore: Yes, Commissioner, I feel comfortable now. Vice Chair Carollo: Okay. And again, the purpose of this is, you know, to have all the facts out, make sure they are facts so there's no misinformation, and at the same time, for the Commissioners to know exactly what's going on. Mr. Mattimore: Yes, yes, absolutely. Chair Gort: Thank you. Commissioner Dunn. Commissioner Dunn: Yes. In one of the briefings with the Manager, it was indicated that Mr. Martinez would -- the Manager would preferably not have to purchase new cars for the police. Had that been a part of the discussion in the negotiations because I understand that it could possibly save the City somewhere in the neighborhood of $6 million. Mr. Mattimore: You know, what we have done is we have asked the Fraternal Order of Police to identift, for us how we can save money in the context of the -- of what we need. And they have not identified the vehicles as an area that should be a cost saving. So no, they have not come to the table. They have come to the table up until now with some ideas on pension and some ideas on overtime, which I think are both valid suggestions, valid ideas that could potentially save us many millions of dollars, so that's in the process of being considered and costed out. But they have not talked about vehicles. Commissioner Dunn: So the discussions have not progressed to that point yet. And let me just say this, not at -- if this is something that could be a part of the discussion. Not at the expense of City ofMiami Page 183 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 D3.6 11-00630 D3.7 11-00631 having our wonderful policemen and policewomen riding around in dilapidated cars. That's not the idea, but looking at the possibility that there may not be a total need for, you know, your normal replacement. Mr. Mattimore: And Commissioner Dunn, it's a good point. I think l feel obligated to advise the Commission of this. Actually, there is language in the contract requiring us to purchase a certain number of vehicles, and that particular article was agreed upon by the parties during the course of negotiations months ago. So if vehicles becomes an issue, it's actually going to be something we'll have to revisit 'cause we've already reached agreement on that. Commissioner Dunn: Okay. Chair Gort: Okay. Any other questions? Thank you, sir. Mr. Mattimore: Thank you all very much. Chair Gort: Keep up the good working and talking to -- my suggestion, anyone that has any ideas of saving monies and creating revenues for the City, please bring them up. It's very important. Thank you. DISCUSSION ITEM DISCUSSION REGARDING THE CITY OF MIAMI'S FINANCIAL TEAM, INCLUDING NEW INTERIM -CFO, SCOTT SIMPSON. 11-00630 Email - City of Miami's Financial Team 07-28-11.pdf DEFERRED Note for the record: Item D3.6 was deferred to the Commission Meeting scheduled for July 28, 2011. DISCUSSION ITEM DISCUSSION, EXPLANATION AND ANSWERS REGARDING THE PURPOSE, AUTHORIZATION AND OCCURENCE REGARDING THE POSSIBLE PAYMENT OF $200,000 TO CHIEF MIGUEL EXPOSITO. 11-00631 Email - Explanation Payment to Chief Exposito.pdf DISCUSSED Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: Couldl bring up D3.7, which is my discussion item? Chair Gort: Yes, sir. Vice Chair Carollo: Okay. I placed a discussion item on the agenda, and as stated, Discussion, explanation and answers regarding the purpose, authorization and occurrence regarding the possible payment of $200, 000 to ChiefMiguel Exposito. "And first of all, I see that the City Manager is not with us. Is there a reason for that? City ofMiami Page 184 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Luis Cabrera (Acting Chief of Operations, City Manager's Office): The City Manager stepped out, sir. Chair Gort: He had an emergency, I understand. Vice Chair Carollo: Is he going to be returning? I don't know the specifics, but you know, this is something that I've mentioned. I think this is a financial issue that should definitely be discussed, andl -- you know, I'm building a good report [sic] with him. You know, I think we're acting both in good faith, but you know, one of the things that mentioned during the ratification procedure was with regards to finance and judgment and so forth, and now I don't see him here. I think this is an important issue. Is there any specific reason he's not here? I wasn't told ahead of time that he wouldn't be here -- Mr. Cabrera: The -- Vice Chair Carollo: -- so I'm just a little surprised. Mr. Cabrera: -- City Manager stepped out due to a family issue that he need to -- needed to deal with. Vice Chair Carollo: Okay. I actually have wished for the Mayor to also be present too because I think, again, this is an issue that we need to discuss. And by the way, as I mentioned before, this is something that I feel needs to be done, that was definitely not started by me; did not know knowledge [sic]; anyone from these Commissioners. And realistically, I think, more than anything, we need answers and we need to see how to move forward so this doesn't occur again. I personally feel that there should be some type of investigation. I don't know if there is one right now or not. But you know, I will begin by saying some of the physical evidence that, you know, we have before us explain exactly what we have so we can, you know, discuss and see how it moves forward. Realistically, this could go in many different ways, so I'm just going to start and we'll see how we end up. I'm going to start with an e-mail (electronic) from our former chief financial officer to our Finance director, dated Wednesday, January 12, that states, Per City Manager, please prepare a check in the amount of $200, 000, payable to Miguel Exposito. "Now, as far as something, a paper trail, physical evidence, this is what I have and this is what it appears how it originated. He sends a second e-mail that stipulates this is a settlement -type check. In the back it has a request for direct payment. It is requested -- at least the name written is Tony Crapp, City Manager. However, it's not signed by Mr. Crapp. It's signed by Larry Springs [sic], our former CFO (Chief Financial Officer), as per the City Manager. And this is, once again, an e-mail from our former CFO, Larry Springs [sic], to Diana Gomez. So it appears that, at least from a paper trail, he initiated this check to Miguel Exposito. It appears the purpose from what is stated here, it's a settlement -type check. I've discussed with several people, and it seems like everyone is under the impression or the belief that a settlement is some type of legal settlement or at least some type of settlement. Now, I first -- I -- my first question was do we have controls in place for something like this? And ironically enough, it appears like we do have controls because for any type of settlement, it appears that -- Chair Gort: It have to come through us. Vice Chair Carollo: Well, hold on. It appears that for any type of settlement -- and I'm reading here now Section 18-232 Responsibility of the City Attorneys. It stipulates here the City Attorney and such of his assistants and claims adjusters, as he may designate, may compromise, settle and pay all claims which may be discharged by payment of an amount not to exceed $25, 000 for each individual claim. Such settlements or compromises shall be for all damages claimed, personal injury, property damage, or both. So it seems like from what I -- I've been able to see, the only one that could authorize this up to an amount not to exceed $25, 000 is our City Attorney. It continues by stating that proposed settlements in excess of $25, 000 shall be City ofMiami Page 185 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 submitted to the City Commission for its approval prior to acceptance. The City Commission shall waive its attorney/client privilege of confidentiality for said settlements for purposes of review by the Financial Emergency Oversight Board. So there are controls in place. And l just want to vern5, with our attorneys, am I correct in what I'm saying, Madam City Attorney? Julie O. Bru (City Attorney): That section that you're reading -from is found in our finance section in the code, and it does -- the Commission has delegated to the City Attorney the authority to settle claims up to $25, 000. Vice Chair Carollo: And as a matter offact, I think recently there was a claim less than $25, 000 that you actually chose to bring it to this Commission, andl remember Commissioner Suarez commending you. Commissioner Suarez: It was an expenditure -- Ms. Bru: Yeah. Commissioner Suarez: -- which was -- I think it was the expenditure for the representation. Ms. Bru: It was an expenditure for outside counsel -- Commissioner Suarez: For outside counsel repre -- yeah. Ms. Bru: -- for the chief. Vice Chair Carollo: For outside counsel. Ms. Bru: For the chief. Yeah. Vice Chair Carollo: Gotcha. But the bottom line is there are controls. Whenever there should be any type of settlement, it's either the City Attorney who can authorize that payment or the City Commission that can authorize that payment. Going back to what occurred. The check was processed, signed by Diana Gomez, andl can't read the assistant director of Finance, but those are electronic signatures. But the bottom line is the check was processed. And first of all, I'm seeing that there was an override in controls because the CFO was the one who initiated this check and authorized it, overriding the controls because he does not have that ability. At the same time -- andl know it's a little uncomfortable because we have our Finance director here. But at the same time, we need to put to light to what occurred, and if there was -- if there were irregularities, I don't know, I guess they could be said in many different ways, then I think we need to be -- it needs to be addressed. And again, this is not to embarrass anyone. This is not to, you know, try to point the finger at anybody. This is just seeking the facts in order to prevent this from happening again. Because as we see right now, there was an override of control. In other words, this should not have happened. It should have either been the City Attorney, which it couldn't have because it was over $25, 000; it should have come to City Commission for approval. Now when that is -- when that e-mail was written to our Finance director -- first of all, she's put in a very, very tough situation because her immediate boss is the one who's authorizing this, and like I said, she's put in a very tough situation. But at the same time, we all have to act as professionals, especially when there is insufficient documentation. In other words, there was no settlement attached, there was nothing really substantiating what the request was. It was an unusual payment, unless we normally write $200, 000 checks to employees of ours. So again, I -- you know, I believe that, you know, there was fault there. Where do we go from here? And at the same time, I am now going to -- or in a few minutes, I'm going to speak about the severance pays that we, you know, have mentioned so much. So you see that there's a clear difference from one and the other. I definitely, definitely -- andl don't know if this is being investigated. As a matter offact, I have heard, you know, from the, you know, media reports the chief saying that he City ofMiami Page 186 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 cannot confirm or deny that it's being investigated. I think somehow we need to know if it really is being investigated, whether a crime has been committed, and now we're going a little -- you know, we're going further -- whether a crime has been committed. Definitely, policy has been broken. I definitely believe that if it's not being investigated, I request that an evaluation or investigation of the circumstances surrounding this transaction so that we can see if there 's any violations. With that said, a lot has been said that this is no big deal. It has -- it was done in the past. It was done with Chief Timoney and others. Let's go to that. Andl will show you that -- or at least I will show you what I've seen and what I have and let you know why, again, I believe it was wrong, but this is a whole different scenario. I have here a list, which ironically enough, I think in the last Commission meeting we stated that -- and we directed the City Attorney to see everyone that has received a severance payment that was not supposed to obtain that severance payment and use every vehicle possible to see if we could be reimbursed. Why was the severance payment not appropriate and it broke policy? I have an APM (Administrative Policy Manual), APM 1-86, Severance Policy. And l just want to point to one sentence of the policy. Severance consideration shall not -- severance considerations shall not be given in the following circumstances. The employee exercises voluntary resignation. Deputy Police Chief Frank Fernandez, resignation. He received a severance -- and I've obtained this from the Administrative staff -- $64, 807, and I'm not going to get into the cents; director of Code Enforcement, Mariano Molet [sic] de Mola, resignation once again, $25, 073; Hector Mirabile, director of Human Resources, resignation once again, $58,163. These amounts that I'm giving are the severance that they received or at least that was provided to me by staff. David Rosemond, director of NET, resignation once again, $25,307; RobertRuano, director of Grants Stainable Initiatives, resignation, $27, 674 in severance; John Timoney, police chief resignation, 68,021; more recently, Peter Korinis, CIO (Chief Information Officer), $56, 080, and Larry Spring, resignation, $61,824. These were all payments that should not have been made because it clearly stipulates severance considerations shall not be given in the following circumstances. Number one, the employee exercises voluntary resignation. It's clear-cut. There is no coming to City Commission. It's just clear-cut. So all this was improper. I did not know these payments were being done. I don't know if any of the Commissioners knew that any of these payments were being done. But we've already seen, and even today, how the Administration does things and, realistically, with or without the Commissioners' approval. The difference with this and with the $200,000 of the police chief is, number one, all these people separated. And when they separate, yes, they have accrued vacation, they have accrued sick leave, some have DROP (Deferred Retirement Option Plans) and so forth, so, yes, they get either a lump -sum payment or they get some type of payment. I had no idea that in that payment was also these severance payments that were improper and should have never been given. Coming back to the police chief the police chief never separated from the City ofMiami and a check was processed. By the way, there was one more piece of document that I did receive. I received it from our City Attorney, and she mentioned to me that she received it from the CFO, which is an acknowledgment, waiver, and release agreement. Now this is something similar and it's some type of settlement, more or less like what Commissioner Sarnoff said today, that, you know, with a one -month severance they -- the person -- the Manager must sign a waiver not suing the City and so forth. By the way, in some of these it was done and some it wasn't even done. Back to this, what caught my eye on this is that it clearly stipulates here, I have agreed to accept discretionary compensation from the City. As far as what discretionary compensation is, I don't know. I can just tell you this is not proper. As a matter of fact, I see notes from the City Attorney. She was wondering what discretionary compensation was. And realistically, it was null and void because apparently the police chief did not take the $200, 000. Now there's one thing that would admit it's speculation on my part, and that's why I definitely do wish that some outside authority thoroughly investigates this because I just don't see the motive for Larry Springs [sic] in authorizing and initiating this check. I mean, I don't see his motive. Why do this. And again, if it's not -- andl don't want to make this into a circus, you know. I definitely want to know if it's being investigated or not. I'm not going to ask the police chief to come here, but the bottom line is, I really want to know if it's being investigated or not. And if it's not, I stand what I said -- by what I said before, you know. I request an evaluation and/or investigation of the circumstances City ofMiami Page 187 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 surrounding this transaction so that the proceed violations can be corrected. Mr. Cabrera: Mr. Chair. Chair Gort: Yes. Mr. Cabrera: I'd like the opportunity to be able to answer the Vice Chair. Commissioner Dunn: Before -- Chair Gort: Wait a minute. Let's listen from the Commissioners before. Commissioner Dunn: Yeah, before. Please. Chair Gort: Commissioner Suarez. Commissioner Dunn. Commissioner Dunn: Please. Mr. Chair, let me kind of address some things. First of all, I am -- I was disturbed -- I am disturbed about procedurally what happened. I don't know what happened. I wasn't there. I believe, moving forward, we need to put some things in place. I think that's part of the reason for the -- to codify the APM. I think that's what we're talking about, in terms of severability and that kind of thing so that this -- these kind of things will not ever occur again in the City ofMiami under our watch. However, one part of itI have to disagree -- respectfully disagree with you, Vice Chairman, as far as an investigation. If the investigators -- that's their job. I'm not going to act in -- that's me. I can't speak for my colleagues. But will not act in a role of investigator. Andl think we're at a -- no. I know we're at a grave -- a great disadvantage to discuss this item if some of the primary people who alleged to be involved are not present. You don't have Mr. Larry Spring here. You don't have Mr. Tony Crapp here. You don't have the police chief here. And when you start dealing with -- we know we have some physical evidence, so I'm not disputing that. Andl -- and that's -- I won't try to dispute it. I won't try to defend it. Let it fall where it may. But if you want to just go on allegations and hearsay after the fact, I can tell you some things that I've heard after the fact that perhaps the chief was a willing negotiator in this process. Now that's what I heard. I don't know that to be true. I heard -- don't know if it's true -- that his attorney might have been present. So let the investigators -- my position is let the investigators do what they do. I'm not going to play the role of an investigator. I think it's a horrific thing that occurred. It's not good. It was embarrassing for the City. But I do know there was a -- in the midst of a lot of controversy -- and I have to state this. Andl wasn't going to state it, butt have to state it. -- my name was thrown out like I knew, andl responded vehemently. Remember, I was on, as a blue page item, to discuss the -- my position on the chiefs performance the next day, andl would never be party to a deal like that if -- you know, especially after I had been talking for weeks. If you check the media, I was announcing that this was going to be. We -- if the media's here, they can pull back their tapes where we actually were talking about my being upset with the Miami Finest video. So I would not be trying to negotiate anything, but that's neither here nor there. I don't have to demonstrate that. But I just want to clear the record. I didn't have a darn thing to do with any of that. I was on board to deal with my issue the next day, andl don't play games up here. IfI say something, that means -- ifI put on my blue page, I'm going to discuss it. I'm pretty much like you, Mr. Vice Chair. If it brings -- if it comes up -- I'm not playing no politics. I only decided at the will of this Commission because of -- that it might be a try -- judicial -- a triunal [sic] body -- what is it? Commissioner Sarnoff. Quasi judicial matter. Commissioner Dunn: -- quasi judicial matter that -- and you said, okay -- then I refrained, I pulled my item because -- but my position -- and I'm -- has never changed, soI respect what you're doing, but now in terms of all of that investigation stuff let them -- if it reaches to that City ofMiami Page 188 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 level, I'm sure they going to do it, andl -- but in terms of me being party to something like that, I will not support that. I will support moving forward. I will support even, you know, making sure we don't make those same kind of mistakes, and maybe to some extent, we need to know something, but in terms -- unless you have all of the parties present or alleged parties present, then you -- you know, you create a big issue. So that's pretty much my position. But I support you bringing this to -- I want to compliment you because you're not ducking the issue, not sweeping it under the desk; you're bringing it to the forefront. It's transparent. It's open. But there's certain lines that I don't want to try to cross. Just like you all said to me on July -- on January 13, we don't want to say anything because this may come back. That's my position today. There -- I want to move forward on a lot of this because we want to make sure that this never happens again, particularly with us being denied the right to have the last say so or the rat. I stand firmly with you on that. Vice Chair Carollo: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Carollo: I appreciate your words, Commissioner Dunn, and as most of you know, I was an investigator. I was a fraud investigator. And -- and an auditor and so forth. But first of all, I'm not here to be an investigator. As a matter of fact, when I first became a Commissioner and there was issues that occurred and so forth, I actually was asked, Frank, you know, you have the power to investigate certain issues and so forth? Andl stated, listen, my investigative skills, my accounting skills as an auditor and so forth, I want to use it to become a better Commissioner, not necessarily do I seek to be an investigator here or so forth. But I'm bringing this to light first of all because if you all haven't noticed by now -- and I think you have -- whenever there's any rumors, any issues, I bring it here to the Commission so we can discuss it openly and, you know, vet it out, and that's what I'm doing again. There was a lot of hearsay, and I think -- I think you cannot say that I have mentioned anything that's hearsay. Everything that have said, I said, hey, I have this document, that document. The only thing said was the chief has said that there may or may not be an investigation. And the bottom line is -- the point to that is that don't know if there is an investigation. But the bottom line is everything that have said here has been facts. And my point with that is that it has been said numerous times that nothing improper occurred. It was just what happened with, you know, Timoney's and others. And no, I disagree with that. Improper things did occur. With that said, although this Commission has the power to investigate, I strongly feel that no, we should not investigate this because all the parties involved. I feel there's too many parties involved and -- I mean, yes. Is it a little awkward that our Finance director is standing before us and so forth? Yes. I will admit it. I don't like the situation. But the bottom line is do I feel it should be investigated by an outside party? Absolutely, absolutely. And that's what am saying. By the way -- and I'm going to sidetrack just a little bit -- garbage fee. Let's talk about the garbage fee. Look at me, Commissioner Sarnoff. Talk about the garbage fee. Let's start with this garbage fee and how I was a solid no vote now, and I'll tell you why. You were right; our budget said $1.5 million it would generate. However, if you look at the resolution, it stipulates $1 million, more or less, something that I brought up to -- something that I brought up -- yeah, if you look at our -- the budget that was presented to us today, 1.5 million. Remember how I said wait a second; there's a $500 shortfall, so it's not a balanced budget. That was part of it. So, first of all, if you ever, ever, ever, ever think that you will get my vote on raising a fee or taxes, you better be clear as can be, crystal clear. And when I see a thousand five -- I mean, I'm sorry, a million five hundred and one and then a million in another, right away, you just turned me off. I discussed this with the Manager. I actually pointed it out to him. It was an error. Second of all, have you added all those severance payments that were improper? They add up to $386,951. If you add the $200, 000 of the processed check, that's approximately $586, 000. If you add the 120 that should have been 240 today, realistically, you're talking well over $700,000. I cannot vote for a fee increase when you're seeing this type of spending. I just can't. We need to make sure that this is not happening before you could gain my support on something like that. Not to mention, yes, the City ofMiami Page 189 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 elderly and so forth that we very well know the people that can afford it and so forth. So I want to point that out because I think it's extremely important. Because I'm sorry; as one of the leaders of this City, I will not be made a joke of how we're throwing money around like it's no big deal. Not to mention the morale of our employees that, once again, are facing furloughs, which, the reason why I asked, the equivalent of an 8.5 salary reduction, when the previous year and the year before that they took a salary reduction. So what am saying and the purpose of this is to make sure we get as many facts as possible out, we see what controls or how we could remedy this issue, and at the same time, yes, I believe an outside agency should definitely investigate this thoroughly and they be the ones that determine whether they question someone, whether they subpoena someone, whether -- and not us. Because the truth of the matter is, you know, we're too involved with one another. Andl think it will put us all in an uncomfortable situation. And the truth of the matter is that is not the job of a Commissioner. Chair Gort: Commissioner Suarez. Commissioner Suarez: Thank you, Mr. Chairman. First of all, I mean, I think we have investigated this matter insofar as we have requested documentation. We have authorities that go beyond, you know, just making a public records request. We could subpoena people if we wanted to, but I don't think it's appropriate for us to go beyond that. I agree that we definitely should not turn this into a circus, and we should definitely not speculate as to what did or didn't occur at meetings that we were not present and -- on either side because the fact of the matter is that's not appropriate. Secondly, what I don't understand is we don't -- and this is kind of frustrating -- have a budget category that's severance. We budget a million dollars or severance, we budgeted $750, 000. So how is it possible that we can spend in money spent not including -- you know, monies that were not spent -- but in monies spent, somewhere in the vicinity of 380 -- almost $400, 000 without their being a budget category that says we're going to have -- as we have, for example, for settlements, legal settlements. I mean, is -- where did that money come from? What account did that money come from? Mr. Cabrera: Commissioner, I've been informed that settlements are paid out of the special NDA (Non Departmental Account) account, and that's how we've -- special pays accounts. Commissioner Suarez: But is that the same account that pays for lawsuit settlements? Mr. Cabrera: No. Chair Gort: No? Yes, it is. Commissioner Sarnoff.. NDA. It's the NDA account. Commissioner Suarez: But it's the same one that pays lawsuit settlements? Commissioner Sarnoff.. Yes. Vice Chair Carollo: NDA -- in the NDA we budgeted last year $2 million for settlements and $10 million for the one-time pay. The problem with that, which is the only reason why -- although I agree with you 100 percent about our reserve, the truth of the matter is, I worry because as I said, whenever -- point blank, government cannot hold money. Whenever we put money in an account, everyone's always trying to find a way to raid it. So your answer is in the NDA, we budgeted last year $2 million for settlements and $10 million for one-time pays. Chair Gort: For one-time payment. Commissioner. Commissioner Suarez: Yeah. My -- the reason why I'm mentioning it is because when we were looking at our ordinance, which we're supposed to dovetail into this discussion -- City ofMiami Page 190 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Right. Commissioner Suarez: -- we were worried that the ordinance was not all encompassing because it only used the word severance. So what I'm saying is that it should be expanded to use words like settlement, administrative leave, anything that could be considered a -- money given upon departure, you know, so that we can make this -- get something positive come out of this whole ordeal; you know, some positive control, a positive development where a law is enacted that prevents these kinds of payments from being made. Because the fact of the matter is -- I agree with the point that you made, which is that we cut our employees' salaries tremendously last year. I don't know what we're going to do this year. We got a taste for what it may be. Andl hope andl'm pretty sure and I've received some assurance from the Manager that that is not what -- that that is just a preliminary estimate of where we 're at. But the fact of the matter is, it's got to be demoralizing to somebody who makes 55 or $70, 000 or $65, 000 in the City ofMiami to see people who are leaving, who are departing the City with enormous pensions, with DROP amounts, with supplementary funds. And then on top of all of that, they're getting these severances, or whatever you want to call them, whether they're severances, settlements, you know, whatever. And so I think we need to, you know -- maybe between first and second reading we need to expand the definition and expand our ordinance to include anything -- you know, as attorneys, we like to categorize things in different ways -- "including but not limited to the following," you know, settlements, severance, et cetera, or things of that nature. Commissioner Sarnoff. I got the words, I think. Commissioner Suarez: What's that? Commissioner Sarnoff. You stimulated me. You got me going, so I think got the words. Don't worry; it wasn't like that. Chair Gort: He's working on it. He's working on it. Go ahead. Commissioner Sarnoff. That's what I'm saying. If the severance, administrative leave or any other payment which purpose is to receive compensation for work not yet performed. Commissioner Suarez: I think you could put settlement in there too. Commissioner Sarnoff. Okay, settlement. Vice Chair Carollo: Now, although I agree with you -- Commissioner Suarez: You don't like the word settlement because you think it's being misused in the other context? Vice Chair Carollo: Now, one thingl do want to point out, although I agree andl think it's a positive move that we codify this, the truth of the matter is the controls were there. I mean, there's an APM that clearly stipulates severance considerations shall not be given in the following circumstances. The employee exercises voluntary resignation. So the controls were there. We're coding it. So I'm -- you know, and again, listen, just so you see that it's not a dog -and -pony show andl'm not just trying to do a political move and so forth because it'll be great to say, hey, listen, we're doing this, and this is going to solve the problem and the whole nine yards. You know, I'm looking at a little bit further than that andl'm concerned that this may not be enough and we need to see what it is enough. Because the truth of the matter is the controls were there already. You understand what I'm saying? Commissioner Suarez: Let me -- City ofMiami Page 191 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Now we're coding it, which makes it better, but -- Commissioner Suarez: But let me just -- it's clear that the policy was violated. Vice Chair Carollo: Right. Chair Gort: Yes. Commissioner Suarez: I think that is clear. Chair Gort: Definitely. Vice Chair Carollo: Yes. Commissioner Suarez: I think the problem is that we aren't realizing that the policy was not a sufficient control; that it needs to be codified because a policy can be departed from by a City Manager verbally. He gets up in the morning and decides -- he's the one that implemented the policy. He's the one that creates the policy. That's why we're making it into an ordinance. Because we're saying we want to take away the discretion from the Manager who may get up one day and say, you know what; today I don't feel like following the policy. So the policy was clearly violated. That is not a sufficient control because it's clearly not enough to stop the action or to mandate that the person has to act in accordance with a certain requirement. Vice Chair Carollo: Or it was an override of controls that were already there. And by the way -- Commissioner Suarez: I thought it was semantical. Vice Chair Carollo: And by the way, two separate issue. One was an override of controls with regards to the severance because everyone that I mentioned resigned and they weren't entitled to severance. Chair Gort: Right. Vice Chair Carollo: The second was with regards to the police chief that never resigned and actually a check was authorized and processed, which should have never been authorized because, as we saw, the only two people that can authorize a settlement is the City Attorney up to $25, 000 and the City Commission. So once again, the policy is there. It was an override of controls. Commissioner Suarez: Quick question, Mr. Chairman. When he says processes, he means issued or does he mean process? Because that's what -- I'm a little confused. Vice Chair Carollo: Well -- Chair Gort: (UNINTET,TIGIBT,F). Vice Chair Carollo: Okay. Commissioner Suarez: Huh? Vice Chair Carollo: Process means the check was processed and it was made out and -- Commissioner Suarez: It was issued then, like it was made into a check. City ofMiami Page 192 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Vice Chair Carollo: Well, I don't know if it was ever given to the chief and he grabbed it and it was issued. You understand what I'm saying? But the check was actually -- Commissioner Suarez: It was made? Vice Chair Carollo: Yes. Chair Gort: Okay. Let me tell you -- andl'm glad you bring this up, and the reason being when I heard about this, I asked for documentation, which I have here immediately. I also talked to City Attorney. Andl'm a great believer in procedures in everywhere. The problem is we do have a procedures, like we do enforcements and sometimes we don't comply with those procedures and we don't comply with the enforcement. We have enough regulation, enough rules to govern. The problem is there's been a lack of enforcement. I think the message that we have to send in here is a message -- andl'm glad you bring it up because that's very important. Once this came up, there was all kinds of innuendos that -- Vice Chair Carollo: Exactly. Chair Gort: -- things that happen and all that, and we want to be clear what's taking place here in the City ofMiami. That's why ask people if they have a chance, watch the meetings because it's a lot easier -- if you watch the meetings, you see what's going on. Procedures were violated, that's for sure. We have to make sure it doesn't happen again. And that's why when we started talking about this motion and this ordinance, I said, it's got to have Commissioners' approval, everything, because we're responsible. Anything that happens in here, we're the one that get blamed for it. So I want to make sure that something happens that I voted for it and I looked at it andl study it. So I'm glad you brought it up because I think it needs to be cleared up. I think it's very important. Ready for the ordinance? Commissioner Sarnoff. Yeah. I've made some changes to it. I'd like to make maybe a brief comment. One thing I've learned being up here all these years, and that is that in our form of government, we don't invest -- maybe unlike the County -- any one person with power. The idea behind it is that we're not a very trusting society and maybe we have not earned the trust, and that's why we require ordinarily three Commissioners, sometimes four and sometimes five for certain actions to take certain duties on. And the reason behind that is you don't invest in one man or in one administrator power to really harm the electorate in terms of dollars and cents. Andl actually believe, as the Vice Chair does, the policy and procedures were in place. And today we're taking a further step by making it a violation of an ordinance, okay. There's -- you know, it's -- Commissioner Suarez, I know you've probably heard this. There's no law I can write to keep a dishonest man from stealing from me. There's no lock, Commissioner Carollo, that I can lock -- thatl can create that a thief can't get through. And that's the end part of the electorate. You have to elect people that you trust and you have to invest your time and ability in making sure you make the right choices. And that's why the City ofMiami acts as a Commission because we simply don't have that trust yet. We simply haven't grown as a society. And we, as the Vice Chair has said before, have to act as a Commission, and it's really interesting to see us act as a Commission versus a Commissioner. And we have pretty much done it -- I mean, he did something today he was apologizing for to me before he was doing it. Andl know how he felt about it. Andl think he made the right decision. Andl think we compromised. And as a Commission, we acted. Andl'm sure he didn't know what the reaction would be 'cause it's tough. We're in tough times. So look, going forward, it's clear what we need to do. I mean, that's clear. No one's going to stick with APMs that a Manager gets up in the morning and says, I cut myself shaving; APM 1-73 is now out, you know. So we know what we're going to do going forward. What we also need to do going forward is really bring the best that we have out in ourselves because regardless of how we move forward, it is the population of the City ofMiami, known as our employees, that really make us shine. And we're going to, once again, impose upon them further restrictions and further cuts, however you want to put it, furloughs, whatever you want to City ofMiami Page 193 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 D3.8 11-00632 D3.9 11-00633 call them; it diminishes their pay. Andl think they need to feel good about us as Commissioners and as a Commission; that we, number one, we're not privy to this, which I think you've made plainly clear, andl actually listened to your radio a little bit; number two -- andl thank you for including all of us in that -- that when we did learn of it, you put it on your pages and we all knew it was going to be discussed; number three, we did discuss it; number four, you've suggested a course of action, and that course of action is a prophylactic one but not an investigatory one, andl happen to agree with you. I mean, the only body thatl know and that investigates itself is the Florida Bar. It's the only regulatory body thatl know investigates itself. Everybody else relies upon outside persons. And if this is the course of conduct that has to occur in the City ofMiami, it should not be us, andl completely agree with you because I need to be able to look at you, I need to be able to look at Commissioner Suarez, I need to be able to look at the Mayor, and I need to be able to look at Diana Gomez and know that none of us are doing anything but setting an agenda for budget and setting an agenda to move forward. So you know, number one, healthy discussion, a fair discussion. Andl agree with you and -- you know, everybody's dancing on the head of a pin because nobody wants to offend anyone, andl think you did a great job in, you know -- knowing that I'm going to trial in a couple days, I'm thinking I could use you as a witness 'cause you did a great job of no hearsay; I agree with that. And let's just move forward. We have FR.4 that we wanted to pass. We have an RE (Resolution) that we thought was important. And let's just -- first reading, let's come up with some new wording. Second reading, we can continue to work it. The resolution I think -- I think there was an emergency resolution put in place, which I thought was great of us, that should be a stopgap measure until we're all satisfied that this ordinance does exactly what everyone up here wants. DISCUSSION ITEM DISCUSSION ADDRESSING THE CITY OF MIAMI BOND RATINGS AND FUTURE PLANS. 11-00632 Email - City of Miami Bond Ratings 07-28-11.pdf DEFERRED Note for the record: Item D3.8 was deferred to the Commission Meeting scheduled for July 28, 2011. DISCUSSION ITEM UPDATE ON MARLINS STADIUM PARKING GARAGE RETAIL. 11-00633 Update Marlins Stadium Garage.pdf DISCUSSED Vice Chair Carollo: There's one more item, discussion item thatl do want to take up. I'll defer all the rest. The last discussion item that I want to bring up is the update on the Marlins stadium parking garage, the parking garage retail. Last time that we discussed this, this Commission gave the direction that you would like for us to give you an update by the end of July, andl said time is of the essence; I will probably be back beforehand. Since then the City has continued and has formed -- continued the committee that we had with obviously new members -- the City Manager, assistant City Manager, the City Attorney's office, Procurement -- and we have had some very good and healthy discussions that has taken hours and, again, very, I would say, successful. And we have come to a determination, in consensus, that we would like to see what leasing agents are out there to give us the best ability to get the best retail in there. With that, time has been of the essence and we have proceeded to -- I don't know what's the terminology, and maybe Mr. Roberts could say. I know it's not an RFP (Request for Proposals). We have put out a -- City ofMiami Page 194 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Kenneth Robertson (Director): Kenneth Robertson, Purchasing Department. Last Thursday we published a request for letters of interest for real estate leasing and/or property management services for the Marlins stadium parking garage retail. Vice Chair Carollo: Exactly. We are moving expeditiously with this. We have a committee that believe will meet next week. Various people are involved, including MPA (Miami Parking Authority), and -- or at least he's been offered the opportunity to be involved. And by the way, MPA has stated to me, personally, that he is in the best position to help us any way that we feel he or MPA could help us. So everything's been cordial. And, realistically, we are moving really quickly with this and so much that we will probably, at the next Commission meeting, bring back numeration of who we believe the committee selected as the best leasing agent for us. We will probably need a four fifth vote so I'm letting you know because of the timeliness. At the same time, we have been in contact with MPA and we are looking to do a memo of understanding by the next Commission meeting. That's our goal. And then later on we will do an interlocal agreement which will get into a lot more detail. Andl don't know if there's any questions? Chair Gort: Nope. Commissioner Suarez: Not right now. Commissioner Dunn: Just a comment. No. I just want to commend you, Mr. Vice Chairman, on -- I know how diligent you've been on this issue with the Marlins stadium, and l feel very comfortable with your recommendations in terms of leading us and not just because it's in your district, butt know, basic, your work ethic. And I just want to say that for the record, that do appreciate it. Vice Chair Carollo: Thank you, Commissioner Dunn. Chair Gort: (UNINTET,T IGIBT,F) the -- Vice Chairman, I'd like to let you know that this is one of the things we're looking at, reoccurring revenue, which is very important -- Vice Chair Carollo: Exactly. Chair Gort: -- for our budget that we get reoccurring revenues -- Vice Chair Carollo: Exactly. Chair Gort: -- and we get -- need to create more of this type of revenues to really balance our budget. Vice Chair Carollo: Exactly, Commissioner Gort. And believe me, my goal is to maximize our revenues and to have, you know, quality retail in there that would spring that revitalization in that area. So I have to say, though, we have been working very closely as a team, the Administration and myself, Johnny Martinez; you know, everybody, from Madeline Valdes, we have really been working very closely. Every decision we have made, I can honestly say has been well vetted, debated, and there has been a consensus reached. So I feel very good about this, and let's move forward, and we'll bring this backup in the next Commission meeting. Chair Gort: Great. Thank you. Do I have a motion to adjourn? Todd Hannon (Assistant City Clerk): Excuse me. Vice Chair, did you have a particular date you wanted to defer the remaining discussions item to? Vice Chair Carollo: Next Commission meeting. Mr. Hannon: Yes, sir. City ofMiami Page 195 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 D3.10 11-00634 D4.1 11-00589 DISCUSSION ITEM DISCUSSION AND UPDATE ON MIAMI PARKING AUTHORITY'S CURRENT YEAR'S BUDGET AND NEXT YEAR'S BUDGET. 11-00634 Email - Update Miami Parking Authority's 07-28-11.pdf DEFERRED Note for the record: Item D3.10 was deferred to the Commission Meeting scheduled for July 28, 2011. END OF DISTRICT 3 DISTRICT 4 COMMISSIONER FRANCIS SUAREZ DISCUSSION ITEM DISCUSSION REGARDING VACANT PROPERTY SECURITY STRUCTURES. 11-00589 Email - Vacant Property Security Structures.pdf DISCUSSED Commissioner Suarez: I have a discussion item. Chair Gort: Yes, sir, Commissioner Suarez. Commissioner Suarez: You finished? Vice Chair Carollo: I'm done. Commissioner Suarez: Okay. Let me -- one of the gentlemen from the company, who's here, has been here all day long. The -- I'm going to defer my two other discussion items, but one of the discussion items that I did want to talk about was in the Skill Center -- and unfortunately, Commissioner -- well, he's still there -- in the Skill Center -- Chair Gort: Skill Center. Commissioner Suarez: Skill Center. Vice Chair Carollo: Skill Center. Commissioner Sarnoff. Is this on the agenda? Commissioner Suarez: Yes. Chair Gort: Yes. Commissioner Suarez: Yes. Commissioner Sarnoff. Sorry. Commissioner Suarez: The Skill Center right now has been covered with a vacant property City ofMiami Page 196 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 security system. Commissioner Sarnoff. Right. Commissioner Suarez: And my discussion item today talks about trying to incorporate that into our neighborhoods and how we secure our vacant properties in our neighborhoods. It's something that I've been interested in from the minute that I saw it at the Skill Center. I think it has some very, very unique features because it not only -- first of all, it's much better protectant than wood. Wood, as we all know in our districts, is constantly being taken down. I'm constantly getting calls and complaints from my residents about the fact that we have to keep funding the wood -- that's the other problem, is that it's funded through our general fund. So another thing that think is important to note is that approximately 90 percent of all our fire calls, 90 percent in the City approximately, are on vacant properties. So you know, we have situations across the country where firefighters have lost their lives fighting fires in vacant properties, and this could be avoided if we could secure these properties appropriately. You know, as with everything, you know, funding always -- it always comes down to funding. One of the things -- I spoke to Community Development and to -- to talk about NSP (Neighborhood Stabilization Program) funding and to talk about Community Development Block funding. They're investigating the possibility of doing a pilot program. I would love if all my Commissioners would join me in that program, if it's legal. Commissioner Sarnoff. Do we -- are we going to get NSP -- isn't NSP over? I mean, haven't we --? That was part of the -- Commissioner Suarez: I'm not sure if we're going to get anymore NSP, but we get CD (Community Development) money every year. Commissioner Sarnoff. Correct. Commissioner Suarez: So Community Development -- you know, economic development money we get on an annual basis. So -- Commissioner Sarnoff. CDBG, right. Commissioner Suarez: Yeah. So, you know, to the extent that the neighborhoods qualify and to the extent that the expenditure qualifies, it's another -- the way we dedicated the $800, 000 to demolishing the buildings was from Community Development Block Grant money. So I'd ask the, you know, head of Community Development to look into the possibility of having a pilot program to secure our homes with these structures. That's pretty much it. I mean, I don't know if any -- the other beautiful thingl liked about it when it was shown to it is that it had a coating. Commissioner Sarnoff. Right. Commissioner Suarez: So it -- not only does it secure the property better, but it looks a lot nicer than wood. You know, you can put a window so it looks like the property's actually being occupied. So you know, one of the major kind of byproducts and victims of the abandoned homes are the neighbors who not only have to deal with people getting into the houses, but they have to deal with the -- Chair Gort: Crime. Commissioner Suarez: -- blight, the kind of blighted condition that the home looks like. So you can have one vacant property on a block and it makes the block look terrible. Commissioner Sarnoff. I was up on 84th Street on Shorecrest this past weekend, and I'm going City ofMiami Page 197 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 to be doing a cleanup drive and anybody's welcome to come out on Saturday morning. And it's going to be right there as well. And there are -- this is in a reasonable -- this is an expensive neighborhood. This is a neighborhood that, at one time, you could not procure a moment, I'd say, for less than $700, 000. Now that number's changed. There are -- in one block there are only two people living in a block. The rest of the homes are abandoned. And this is -- if you think about it, 84th Street is on the water. That is one of those inlets. Two people living on one block. Commissioner Suarez: Mr. Chairman, ifI may? Chair Gort: It's amazing. I was unaware. Yes, sir. Commissioner Suarez: Basically what I want to do is bring this back in a month or I guess -- we can't bring it back in the next meeting; I guess we would have to bring it back in September. Thing is, it'd be tough -- Vice Chair Carollo: Budget. Commissioner Suarez: -- to bring it back in September. Maybe, if we can, bring it back in the next Commission meeting with -- if the Legal can work with CD to see if it's a legal expense to start potentially a pilot program. Commissioner Dunn: Go ahead, go ahead. I was going -- Commissioner Suarez: And also to get an idea of how much we spent from our general fund on wood because we do spend it -- from my understanding, we use general fund money to secure our properties currently with wood and that may be a recurring expense just to get a handle on what the alternative expenditure would be because if we could save money -- because I know -- that's the other thing. You can replicate this. You can use this on another house, on the next house. With wood -- it's the opposite of wood. Wood, you're constantly replacing it. This, you can constantly reuse it. So you know, the analysis has to be done as to whether or not it's more expensive or less expensive to go with a product like this. Commissioner Dunn: Mr. Chair. Chair Gort: Okay. Thank you. Commissioner Dunn: IfI may? Chair Gort: Yes, sir. Commissioner Dunn: I see we have Mr. Pieter Bockweg here, andl wanted to ask if -- with this board's permission, that he speak from the CRA's (Community Redevelopment Agency) experience in dealing with the Skill Center. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Good evening. Pieter Bockweg, executive director of the CRA. As you all know, we have the VPS (Vacant Property Security) system on the Skill Center. And to date, we have had no break-ins, no issues since we've had those up. And obviously, VPS was kind enough to put it on there for free, at no expense to the taxpayers, as a pilot. But I can say from the Skill Center, it works very well. Chair Gort: Thank you. Okay. Alice Bravo (Assistant City Manager/Chief of Infrastructure): We'll collect that -- City ofMiami Page 198 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Chair Gort: Any other -- Ms. Bravo: -- information and come back next meeting with some type of order of magnitude analysis. Commissioner Suarez: Thank you. Julie O. Bru (City Attorney): Let me just pipe in for a second. My attorney tells me that -- she's already been looking at this with CD. Commissioner Suarez: Right. Ms. Bru: So it seems like what you're -- the funding that you have in mind can be utilized. The only thing is is that we would have to actually structure a program and tomorrow we 're printing the agenda for next meeting, so I doubt that we can rush something and have it to you on the 28th. But we can bring back on the 28th, the concept, discuss it, and then proceed to structure it in a legislative item and bring it back in September already done. Commissioner Suarez: That's fine. Ms. Bru: Okay. Chair Gort: Okay. D4.2 DISCUSSION ITEM 11-00590 D4.3 11-00612 DISCUSSION REGARDING POSSIBLE IMPLEMENTATION OF AN "ADOPT -A -TRAFFIC CIRCLE" PROGRAM, SIMILAR TO THAT OF AN "ADOPT -A -HIGHWAY" PROGRAM. PERHAPS THE RESIDENTS WHOSE NEIGHBORHOODS INCLUDE THE TRAFFIC CIRCLES CAN CONTRIBUTE TO FACILITATE MAINTENANCE OF THE TRAFFIC CIRCLES AS WELL AS TO PREVENT THEM FROM FALLING INTO DISREPAIR. 11-00590 Email -Adopt-a-Traffic Circle Program.pdf DEFERRED Note for the record: Item D4.2 was deferred to the Commission Meeting scheduled for July 28, 2011. DISCUSSION ITEM DISCUSSION REGARDING RECENTLY PASSED LEGISLATION (HB 281) REGARDING CHALLENGED PROPERTY ASSESSMENTS. 11-00612 Email Challenged Property Assessments.pdf DEFERRED Note for the record: Item D4.3 was deferred to the Commission Meeting scheduled for July 28, 2011. END OF DISTRICT 4 City ofMiami Page 199 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 NA.1 11-00684 DISTRICT 5 COMMISSIONER RICHARD P. DUNN, II END OF DISTRICT 5 NON AGENDA ITEMS RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION RESCHEDULING THE SEPTEMBER 8, 2011, REGULAR CITY COMMISSION MEETING TO SEPTEMBER 15, 2011, AT 9:00 AM; FURTHER RESCHEDULING THE SEPTEMBER 22, 2011, PLANNING AND ZONING CITY COMMISSION MEETING TO SEPTEMBER 29, 2011, AT 9:00 AM. Motion by Commissioner Sarnoff, seconded by Commissioner Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Dunn II Absent: 1 - Commissioner(s) Carollo R-11-0301 Chair Gort: Before we go into that, my understanding is the City Clerk requested the -- certain Todd Hannon (Assistant City Clerk): Yes, Chair. Mr. City Manager, Chair, I've been informed that we have two dates for our budget hearings in September. They are September 15 and September 29, to begin at 5: 05 p.m. I've also been informed that we are looking at rescheduling our Commission meetings that are currently planned for the 8th and the 22nd to the 15th and the 29th. Is that correct? Johnny Martinez (City Manager): Yes. Chair Gort: That was my understanding that was requested at the -- I asked to ask all the Commissioner to bring it here today if it's all right with everyone. Commissioner Sarnoff. Yes, sir. Mr. Hannon: Okay. Then the only thingl need the Commission to do is to pass a resolution rescheduling the Commission meeting dates currently scheduled for the 8th and the 22nd to the 15th and the 29th to begin at 9 a.m. Commissioner Sarnoff. Move in accordance with the Clerk's request. Commissioner Dunn: Second. Chair Gort: It's been moved by Commissioner Sarnoff, second by Commissioner Dunn. Any further discussion? Being none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. Mr. Hannon: Thank you. City ofMiami Page 200 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 NA.2 11-00685 NA.3 11-00686 NA.4 11-00687 [Later..] Mr. Martinez: Mr. Chair, I need a clarification. Chair Gort: Yes. Mr. Martinez: The two dates that were set for No -- for September are September 15 and September 29. They will be dual meetings. There will be a Commission meeting followed by the budget meetings. But the September 29 meeting, there was already a Commission meeting set on that date already. I think you said -- Okay, I take it back. Chair Gort: Okay. Thank you. DISCUSSION ITEM COMMISSIONER SUAREZ RECOGNIZED CITY OF AVENTURA COMMISSIONER LUZ WEINBERG IN COMMISSION CHAMBERS. DISCUSSED Chair Gort: At this time, I'd like to recognize Councilwoman Luz Weinberger, who's visiting us from Aventura. Welcome. DISCUSSION ITEM DISCUSSION BY CHAIR GORT REGARDING THE "CITY PARKS ALLIANCE" RECOGNITION OF GRAPELAND WATER PARKAS A "FRONTLINE PARK", HIGHLIGHTING THE PARK AS AN INSPIRING EXAMPLE OF URBAN PARK EXCELLENCE, INNOVATION, AND STEWARDSHIP. DISCUSSED Chair Gort: By the way, I'd like to bring notice of the Grapeland Water Park selected as a frontier -- Frontline Park by the City Parks Alliance. The Washington DC Grapeland Water Park in Miami, Florida has been named as Frontline Park by the National Urban Park Advisory Organization City Park Alliance. My congratulations. I hope you all got a copy of that. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO IDENTIFY ALL LEGAL MECHANISMS THAT WILL ALLOW THE CITY OF MIAMI TO CREATE ITS OWN UNSAFE STRUCTURES BOARD OR PANEL. Motion by Chairman Gort, 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-11-0302 Vice Chair Carollo: I'm sorry. Mr. City Clerk, is there any other item in the agenda that we need to address? City ofMiami Page 201 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Todd Hannon (Assistant City Clerk): No, sir. The only items left on the agenda are discussion items. Chair Gort: Okay. Discussion item. Vice Chair Carollo: Discussion item. Commissioner Sarnoff, do you want to -- Commissioner Sarnoff. Yeah. I -- Vice Chair Carollo: -- discuss your item? Commissioner Sarnoff. -- will waive my discussion item. However, I do have a pocket item and I think it would interest all of us. Very quick. Apparently, as you know, we've been taking down unsafe structures, and I have to thank the right side of the dais over there, Commissioner Suarez. However, having said that, I didn't know this 'til a moment ago, andl have to take down a home that is in such bad shape that -- it's on 33rd, anybody wants to go see it, and Biscayne. It's in horrible condition. But apparently, it's been declared historic. I don't think there's anything left historic in it that's not collapsing. So I'm going to have to end up using my own office account because I cannot use NSP (Neighborhood Stabilization Program) funds on this structure so, of course, I am now concerned because I don't have that much office funds and I'm trying to, of course, figure out the cheapest way to do this. I learned that every time we go to the Unsafe Structure Board at the County, they take a fee of -- from us of $1, 400 for the application, $1, 400. My first instinct then was to do a resolution asking the County waive those fees. But what I was told by Mariano Fernandez or Mr. -- I call him Mr. Building. He tells me that we actually have the authority to have our own board; that we could actually be a municipal unsafe structure board. So what I'm proposing is that we ask the City Attorney for all the legal mechanism necessary for us to install our own unsafe structure board, save the $1, 400, have the hearing done here. Go ahead, sir. I'm probably getting it wrong and it's late and don't think -- Mariano Fernandez (Assistant Director/Building Official): No, no. I just wanted to clarify something. Mariano Fernandez, Building Department. The County change the Miami -Dade County code allowing now every municipality to put their own panel or a board. We recommend to go to the panel, which it can be accommodated through the City Attorney's office. We already have all the legislation and we can present it to you. Commissioner Sarnoff. And that's my suggestion to this board. Commissioner Dunn: Mr. Chair. Commissioner Suarez: I would just say -- Chair Gort: Yes. Who's chairing? Commissioner Dunn: Go ahead. Go -- it doesn't matter. I wanted to ask a question. Mr. Fernandez: Yes. Commissioner Dunn: Roughly, what is the mean, average? What does that come out to that we have been leaving on the to -- well -- yeah, leaving on the table to the County, roughly? Just give me an estimation. Mr. Fernandez: At least $1, 400 that is the application fee to go in front of the -- Commissioner Dunn: No. I understand that. Times -- City ofMiami Page 202 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 NA.5 11-00688 Mr. Fernandez: -- to the board. Commissioner Dunn: What are we averaging a year, roughly, just roughly? Mr. Fernandez: The last two years we have not too many cases because we didn't have funds in place so we didn't prosecute the cases. Because even if we get the demolition order, if we don't have the money to demolish, it's not worth it, so we didn't wanted to spend the money going. Commissioner Dunn: I see. I gotcha. But that's what stalled the process with us. Mr. Fernandez: Correct. Commissioner Dunn: Okay. Alice Bravo (Director, Capital Improvement Program): And this is a cost we would save on every case, not just the ones where NSP is not eligible. Mr. Fernandez: That's correct. Commissioner Dunn: Got it. Commissioner Sarnoff.. I mean, this is some good stuff here. And this fulfills your idea. Chair Gort: Move it. Commissioner Dunn: Second. Vice Chair Carollo: I have a motion by Commissioner Gort, seconded by Commissioner Dunn. Any discussion? Hearing no discussion, all in favor, say aye." The Commission (Collectively): Aye. Vice Chair Carollo: Anyone in opposition have the same right to say flay. "Motion carries unanimously. Mr. Fernandez: Thank you, Commissioner. DISCUSSION ITEM CHAIR GORT AND THE MIAMI CITY COMMISSION COMMENDED ASSISTANT CITY CLERK TODD B. HANNON FOR HIS EFFORTS AND ASSISTANCE AS "ACTING CITY CLERK" DURING THE JULY 14, 2011, MIAMI CITY COMMISSION MEETING. DISCUSSED Chair Gort: Before we adjourn, Todd, I just want to thank you. I think the City Clerk's Office should be very proud of the work they've done with you. You all have done a great job. Commissioner Sarnoff.. Great job. Commissioner Dunn: Absolutely. Chair Gort: Thank you. City ofMiami Page 203 Printed on 8/8/2011 City Commission Meeting Minutes July 14, 2011 Commissioner Sarnoff.. Great job, really. Commissioner Dunn: Absolutely. Todd Hannon (Assistant City Clerk): You all make my job easier. Commissioner Dunn: Could you please speak into the mike, please? Commissioner Sarnoff.. Well, that's a crock and you know why, but great job. Chair Gort: Do I have a motion to adjourn? Commissioner Dunn: So moved. Commissioner Sarnoff.. So moved. Vice Chair Carollo: Second. Chair Gort: Thank you. ADJOURNMENT The meeting was adjourned at 9:17 p.m. City ofMiami Page 204 Printed on 8/8/2011