Res. No. 015-05-11994RESOLUTION NO.
15-05-11994
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI,FLORIDA RELATING TO ACQUISITION OF THE
"HAMMOCK HOUSE";AUTHORIZING THE CITY MANAGER TO
NEGOTIATE A LOAN IN THE AMOUNT USED TO ACQUIRE THE
PROPERTY AND REIMBURSING VARIOUS BUDGET ACCOUNTS WITH
THE AMOUNT TRANSFERRED FROM THEM FOR THE TRANSACTION.
WHEREAS,theCity Commission approvedresolutionnumber 190-04-11969 on December 7,
2004toauthorizethepurchase of remainderofthepropertyknownasthe"HammockHouse";and
WHEREAS,paymentforacquisition of thispropertywasmadeout of variousbudgetaccounts
in order to expedite theclosingfortaxpurposesbeforetheend of theyear;and
WHEREAS,theCity Administration wishes tonegotiatealoantoreplenishthevariousbudget
accounts with the amount of $567,366.50 used to close the transaction.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI,FLORIDA THAT:
Section 1.Theabovewhereasclausesareincorporatedbyreference.
Section 2.The City Manager is authorized to negotiate aloan with any lending institution
thatoffersthebestrateintheamount of $567,366.50plusrelatedloanchargestoreplenishthe city's
budgetaccountsandpayfortheloantransactionfeesassociatedwiththepurchase of the"Hammock
House."
Section 3.TheCityManageristonegotiatealoanwithalending institution andshallbring
theloandocumentsbytotheCityCommissionfor final authorizationandapproval.
Section 4.Thisresolutionshalltakeeffectimmediatelyuponapproval.
PASSED AND ADOPTED this /&/"day of February,2005.
ATTEST:APPROVED:
ITY CLERK
COMMISSION VOTE:
READ AND APPROVED AS TO FORM:
COMMISSION VOTE:4-0
Mayor Russell:Yea
Vice Mayor Palmer:Yea
Commissioner Wiscombe:Yea
Commissioner Birts-Cooper:Yea
Commissioner Sherar:absent
CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
****************************************************************
To:Mayor andCity Commission Date:February 1,2005
4rFrom:Maria V.Davis /Jfr\vkO.i^AGENDA ITEM #
City Manager f/^\'I^mA*I J Re:Commission meeting February 1,2005
Negotiation of loan onthe
Van Smith Property (Hammock House)
*****************************lie**************************************
RESOLUTION
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH
MIAMI,FLORIDA RELATING TO ACQUISITION OF THE "HAMMOCK HOUSE";
AUTHORIZING THE CITY MANAGER TO NEGOTIATE A LOAN IN THE AMOUNT
USEDTO ACQUIRE THE PROPERTY AND REIMBURSING VARIOUS BUDGET
ACCOUNTS WITH THE AMOUNT TRANSFERRED FROM THEM FOR THE
TRANSACTION.
BACKGROUND
On December 7,2004,theCity Commission approved resolution number 190-04-11969 to
authorizepurchase of thepropertyknownasthe"HammocksHouse".Inordertoexpedite
closing of thepurchasebeforetheend of theyearfortaxpurposes,funds forthetransactionwere
temporarily transferredfromvariousbudget accounts pendingnegotiation of aloanbythe
Finance Director after returning from vacation.
Theattachedresolutionisrequestingyourauthorizationtonegotiatealoanintheamount of
$567,366.50 plusloantransactionfeeswithanyqualifiedlendinginstitutionthatoffersthebest
rate,to reimburse various budget accountsusedtopayforthe acquisition.
Attheconclusion of theloan negotiation,Iwillforwardthefullloan documents foryourreview
andapprovalto complete thetransaction.
RECOMMENDATION
Approval is recommended.
CITY OF SOUTH MIAMI 2004-05 PROPOSED EXPENDITURES BUDGET
FUND GENERAL
NON-DEPARTMENTAL EXPENSESDEPARTMENT
NON-DEPARTMENTAL EXPENSES
OTHER GENERAL GOVT SERVICES
DIVISION
FUNCTION
2184
2135
2186
2137
2138
2139
2190
2191
2192
2193
2194
2195
2196
2197
2198
2199
2200
2201
2202
2203
2204
2205
2206
2207
2208
2209
2210
2211
2212
2213
221-
2215
221*
2217
2218
2219
2220
2221
2222
2223
2224
ACCT ACCOUNT CLASSIFICATION
NO
1210
SALARIES &FRINGE BENEFITS
SALARIES &WAGES -REGULAR
TOTAL SALARIES &WAGES
2110
2210
2220
F.l.CA.
PENSION PLAN CONTRIBUTIONS
DEFERRED COMPENSATION CONTRE
23101GROUP HEALTH INSURANCE
TOTAL PERSONNEL SERVICES
SERVICES &SUPPLIES
3160 PRE-EMPLOYMENT PHYSICALS
3210 AUDITOR'S FEE
3440
3450
CONSULTANT-LABOR ATTORNEY
CONTRACTUAL SERVICES
4070 TRAVEL &CONFERENCE
4080
4120
4425
4440
4630
4720
EMPLOYEE EDUCATION
COMMUNICATIONS-TELEPHONE SER
LEASE PURCHASE-POLICE 800 MHZ
LEASE PURCHASE-TELEPHONE
MAINTENANCE &REP-COMM EQPT
PRINTING &PHOTOCOPYING
5210 SUPPLIES
5550 AFTER SCHOOL PROGRAM
5590 LONG RANGE PLANNING
8310
9210
9230
9240
SEED FUNDS
CONTRIBUTION TO INS.FUND
CONTR1BUTN TOSMARTIN TRUST
CONTRIBUTION TOCRATRUST FUNDI
9910!CONTRIBUTION-SPECIAL EVENTS
9915 CONTRIBUTION-RED SUNSET MERCH!
9920
^9925
GENERAL CONTINGENCY
SETTLEMENTS Q*—U Qc~
PARKS GRANT MATCHING FUND ^^
9926'DEBT SERVICE-REAL PROPERTY ACCj
ijrv^9931
9932
ECONOMIC DEVELOPMENT
STREET BEAUTIFICATION
9950 RESERVE FOR REENCUMBRANCES
TOTAL SERVICES &SUPPLIES
TOTAL OPERATING EXPENSES
[THIS PAGE IS PRINTED ON RECYCLED PAPER
01
21
00
519
ACTUAL
EXPENDITURES
2002-2003
31,690
$31,690
2,938
625,799
34,530
4,588
$699,545
SO
64,956
1,784
7,230
77,660
0
64,017
25,739
2,500
$243,886
$943,431
065
ADOPTED
BUDGET
2003-2004
SO
SO
SO
772,840
42,040
$814,880
$0
47,500
17,500
78,000
25,000
11,500
7,500
500
0
25,000
49,520
114,110
0
5,000
$381,130
$1,196,010
DEPARTMENT'S
REQUESTS
2004-2005
SO
so
so
780,000
50,000
$830,000
so
50,000
50,000
78,000
25,000
3,000
500
25,000
50,000
115,000
5,000
$401,500
$1,231,500
CITY
MANAGER'S
RECOMMENDATIONS
2004-2005
a u«_
so
SO
so
780,000
50,000
$830,000
SO
50,000
50,000
0
78,000
25,000
3,000
20,000
500
25,000
50,000
37,000
245,000
/75.000
(50,000/
5,006
$944,000
$1,774,000
mitigate the burden,we told them to break it down into two
different cycles,$25/$25.Mr.Oshikoya said that he believes
that the people that have paid are the ones that the City bills
because they are on well water.Ms.Davis said that the
residents have been billed because the Mayor has gotten hers,
adding that evidently the County has billed the residents before
we finalized the Interlocal Agreement.
Vice Mayor Palmer then asked as to how long it will take
for the refunds to be made.Ms.Davis said that we need to
identify those residents that have been billed and then work it
out with WASA to see who they have billed to date and refund
those residents.She then referred again to her decision to
support the purchase of the YMCA.Ms.Davis said that we need
park space,we need green space for concurrency,and that she
believes that this is going to be a catalyst for economic
development in our business district.She added that we are
getting the ten-acre property at a great price and that she does
not see a downside.Vice Mayor Palmer concurred saying that
there is no place in the whole County where we can buy ten acres
of land for that price,needless to say in South Miami.
Mayor Russell then asked Mr.Oshikoya as to whether we are
clear on the WY."
CommissionerSherarthenreferredtotheissueofimpact
feesandMr.0'Donniley explained theconcept.
Mr.Oshikoya then explained that because of the lower
appraisal received on the "Y,"instead of $245,000 originally
projected we will only need $143,000 for both the UY"and the
Van Smith properties,and out of those $143,000,approximately
$39,00 will be for the Van Smith property,based on a 30-year
loan as per the index received from the League;therefore,the
remainder $102,000 canbe placed inthe reserve,raisingthe
reserve from $1.3 to $1.4.
Moved by Commissioner Sherar,seconded by .Mayor Russell,
the motion tosetaside$143,000andputit under a "Park-
Purchase Account,"passed byunanimousacclamation.
Hakeem then verified with the Commission that we are
banking the $102,000 towards the .114 reduction.
Moved by Commissioner Sherar to eliminate the amount of
$107,000 on page 67,line 2277.The motion died for lack of
second.
SPECIALCITYCOMMISSION ]_2
MINUTES-September 28,2004
i City of South Miami
2 Special City Commission Minutes
3 September 28,2004
4
5 CALL TO ORDER:
6
7 The City Commission ofthe City of South Miami,Florida met
8in special session on Tuesday,September 28,2004,beginning at
9 6:00 p.m.,in the City Commission Chambers,6130 Sunset Drive.
10
11 A.Roll Call:
12 The following members ofthe City Commission were present:
13 Mayor Mary Scott Russell,Vice Mayor Velma Palmer,and,
14 Commissioners Randy G.Wiscombe,Marie Birts-Cooper and Craig Z.
15 Sherar.
16
17 Also in attendance were:City Manager Maria V.Davis,City
18 Attorney Luis Figueredo,Finance Director Hakeem Oshikoya and
19 City Clerk Maria M.Menendez.
20
21 B.Invocation:The invocation was delivered by former Mayor Dr.
22 Anna Price.
23
24 C.Pledge of Allegiance:
25 The Pledge of Allegiance was recited in unison.
26
27 D.Presentation(s)6:00 p.m.
28
29 a)Budget and Finance Committee
30
31Mr.Sellars,one ofthefive members ofthe Budget and
32 Finance Committee,indicated that the Committee had not have
33 enough timeto review allthe information concerning the budget
34andwasnot prepared to vote onanything.He said that they could
35 answer any questions the Commission may have and reiterated that
36 they werenot ready tomakeany recommendations.
37
38 b)Acquisition of YMCA property
39
40Ms.Davis presented anoverviewofthe proposed acquisition
41ofthe YMCA property,consisting ofthe following discussion
42 items:Park Overview;Park Operations;Benefitstothe Community;
43 Proposed Purchase;and,Concurrency Issues.
44
45 Beforeshewentintothe presentation she explained tothe
46 Commission that even though she had met with the "Y"
SPECIAL CITY COMMISSION
MINUTES -September 28,2004
1 representatives as she had announced,she did not have further
2 information in terms ofa dollar amount since they were more
3 interested in parameters of the deal.Then Mr.O'Donniley
4 explained the importance of meeting concurrency which is four
5 acres per 1,000 from the City's current population of 10,891 as
6 of August 2004 per the "Bureau of Economic and Business Research"
7 (BEBR).
8
9 Vice Mayor Palmer expressed some concern in terms of the
10 importance of having some type ofa back up plan in the event
11 that the "Y"would not going along with the lease plan.Ms.Davis
12 explained that all of that will be stipulated in the contract to
13 enable the City to enforce any thing that we agree upon.
14
15 With no further comments or discussion,the presentation
16 concluded.
17
is ITEMS (S)FOR THE COMMISSION'S CONSIDERATION:
19 2nd Reading of Ordinance/Public Hearing(s)
20
21 1.AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
22 CITY OF SOUTH MIAMI,FLORIDA,LEVYING THE MILLAGE OF
23 7.373 WHICH EXCEEDS THE ROLLBACK RATE BY 13.0%AND
24 RESULTING IN 0%INCREASE IN PROPERTY TAX RATE IN THE
25 CITY OF SOUTH MIAMI,FLORIDA,FOR THE FISCAL YEAR
26 2004/2005;PROVIDING FOR SEVERABILITY;ORDINANCES IN
27 CONFLICT AND AN EFFECTIVE DATE.3/5
28 (City Manager)
29
30 Moved by Vice Mayor Palmer,seconded by Commissioners
31 Wiscombe and Birts-Cooper to approve this item.
32
33 Moved by Commissioner Wiscombe,seconded by Commissioners
34 Sherar,the motion to table this item passed by a 5-0 vote:
35
36 •Commissioner Wiscombe:Yea
37 Commissioner Sherar:Yea
38 Vice Mayor Palmer:Yea
39 Commissioner Birts-Cooper:Yea
40 Mayor Russell:Yea
41
42
43 2.AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
44 CITY OF SOUTH MIAMI,FLORIDA,ADOPTING A BUDGET OF
45 $14,242,617 AND PAY PLAN FOR THE 2004/2005 FISCAL YEAR;
46 PROVIDING FOR SEVERABILITY;ORDINANCES IN CONFLICT;AND
47 AN EFFECTIVE DATE.3/5
48 (City Manager)
SPECIAL CITY COMMISSION
MINUTES -September 28,2004
1
2 Moved by Commissioner Sherar,seconded by Commissioner
3 Wiscombe to approve this item.
4
5At this time Mayor Russell opened the floor for public
6 hearing.
7
8 Yvonne Beckman said that she feels that since the beginning
9of the budget process she has done her civic duty to ensure that
10the citizens'view points are addressed.In recapping,she said
11 that their taxes are up from the assessments;they also pay
12 half-penny salestax,andifthis budget passes they will pay a
136%tax increase over last year.She said that shehas presented
14 her recommendation to reduce each department by a percentage to
15 allow up to one mill reduction.She said that shehas also
16 provided information about the Consumer Price Index which in
17 South Miami supercedes by 150%.She then said that the
18 composition ofthe Budget and Finance Committee did not
19 represent anyone east ofUS1;said tobein favor of purchasing
20 the Van Smith property;said that the pension payment for former
21 City Manager Scurr should go into the contingency fund and not
22inthe regular budget;she asked asto where arethe Christmas
23 lights that were purchased several years ago for about $40,000.
24 Finally,she indicated that she would like to debate the
25 rebuttal made by Ms.Davis about the Pinecrest comparison issue.
26
27 Mayor Russell explained that the $40,000 that Ms.Beckman
28 mentioned were not to purchase the Christmas light,but rather,
29 it was a rental fee which included the installation and removal
30of the lights.She explained that for that reason they cut this
31 expenditures last year and now the City is going to start buying
32 the lights in order to safe money.The Mayor then thanked Ms.
33 Beckman for expressing her support of the completion of the Van
34 Smith property purchase.Ms.Beckman indicated that she would
35 like to discuss the problems related to that property in
36 private.
37
38 Sharon McCain referred to the September 9th Neighbors where
39Ms.Davis wrote indicating that the City had just come out ofa
40 difficult financial situation and did not recommend lowering the
41 taxes this year.She then questioned asto whether the budget is
42 really balanced.She also referred to what the new elected
43 officials had answered in February 2004to questions posed by
44 the South Miami Homeowners.She then referred to the budget ad
45 published on Sunday's Neighbors,noting that it shows "0"debt
46 services.The Mayor explained thatthe reason is because we do
47 not have any debt service millage in addition to the ad valorem
48 taxes.About the parking garage obligation,Ms.Davis explained
49 thatthis is not inthe budget because itis not part ofthe
50 general fund.That expenditure is coming out of revenue that the
SPECIAL CITY COMMISSION 3
MINUTES -September 28,2004
1residentsarenotresponsible for.Withreferencetothe$50,000
2forthe merchants,Ms.McCain asked asto why the residents have
3toberesponsibleforpromotingthemerchants.Shethen
4 expressed concernabouttheproposedclosingofSunseton
5Sundaysanditsimpactonthedowntownparking situation.She
6referredtotheissueofgarbagepick up,suggesting that
7perhapsonepickupaweekwouldbe sufficient.Aboutthe
8CommunityCentershesaidthattheCityisnotdoing anything
9aboutpromotingindoor basketball.Shethenquestionedtheissue
10 of concurrency.Commissioner Sherar clarified this issue,saying
11thatunfortunately,pastadministrationsdidnot pay much
12attentiontotheimportanceofmeeting concurrency.Hesaidthat
13 thereasonheisgoingtovoteforthe "Y"isbecauseofthe
14City'sprojectsrelatingtofuture annexations.Also,thisisa
15waytopreventadeveloperfrombuyingthetenacresoflandand
16 consequently overpopulatethe City.Ms.McCain alsohada
17questionaboutthephaseoutofthepolice cars.Shethen
18 referred tothe "hiring freeze"that Commissioner Wiscombe
19 mentioned ataprevious meeting.AbouttheBudgetandFinance
20Committeeshesaidthatitwasputtogether very late;adding
21thatoneofthe members isamerchant,suggesting that this
22 constitutes a conflict of interest.
23
24MayorRussellexplainedthatthemerchantthatsitsonthe
25Budgetand Finance Committee,ontheissuethat affected the
26 downtown merchants,he stated his conflict and did not offer an
27opinion,and thathedidmakethat statement ontherecord.The
28MayorthenaskedtheCityManagertotalkaboutthe "hiring
29freeze"and the comments madeon employment advertising during
30 the freeze.Ms.Davis said thatthe way she understands the
31 "hiring freeze"comments from Commissioner Wiscombe at the last
32 meeting isnot creating any "new"positions,butshe said she
33 was unaware of that.She also said that she imposed her own
34 "hiring freeze"a couple ofmonthsagoandthatno new positions
35 have been added.
36
37 About the basketball promotion,Mr.Ricke explained that we
38do have an adult league and a youth league starting on Saturday
39 and that we are promoting both leagues.
40
41On the reimbursement ofthe garbage feeto the residents
42Ms.Davis explained that it would represent $150,000 from the
43 reserves.
44
45 With regard to the police cars,Ms.Davis explained that 17
46 cars were eliminated.As for the rest,she said that itis being
47 discussed as part of collective bargaining and cannot be
48 discussed at the present time.
49
SPECIAL CITY COMMISSION
MINUTES -September 28,2004
1 About the $50,000 tothe merchants the Mayor explained that
2thisisnotpaiddirectlyto them.Thisisforeconomic
3 development.Shesaidthattheideaistopromotetheuniqueness
4ofourdowntown,boosttheindependentmerchants'revenuesand
5helpmakeitmoreprofitableforthemtostayandcontinuetobe
6 located on Sunset Drive;and allofthisisinan effort to keep
7ourdowntownthespecialand wonderful placethatweenjoyso
8 much.Themoneyisgoing into the Manager's budget andshe will
9 be dictating how itis spent.
10
11 Commissioner Wiscombe asked as to what has been the
12responsefromthemerchantswithregardstoopeningon Sundays.
13
14Ms.Davis said that she had her first meeting with the
15 merchants about threeweeksagoandthatshedidnothave any
16resistance.Onthecontrary,shesaidthat from the comments
17•thatshegotfromthe merchants during thatmeetingtheyareall
18veryexcitedabout it.Commissioner Wiscombe saidthatheand
19Juliotriedtodothatseveralyearsagoandwerenotsuccessful
20 on that endeavor.Ms.Davis said that it could be that we have
21 some new merchants who seem much more excited about promoting
22 the downtown.
23
24 Commissioner Sherar referred tothe parking garage and said
25thathedoesnotagreethewayweare accounting for it.
26 However,he said that itisan accurate assessment that the
27garageloanisnotgoingtobecomingoutofthemillagerate.
28He said that unfortunately things arenot moving asfastaswe
29 would like with thenegotiations,buthe believes thatweare
30 heading inthe direction toresolveit.He also indicated that
31 this Commission has inherited the mistakes made in the past but
32 that they are doing the best they can.
33
34 Mayor Russell indicated thatthe only consistent "no"
35 against that parking garage for five years was her.
36
37 Dick Ward said that even though he does not live inthe
38Cityhehasasonwho does.Hethenurgedthe Commission to
39 purchase the"Y."He also saidthatthe"Y"should pay forstaff
40 and also that the current staff should stay inthe"Y."He also
41 recommended thatthe City should approve every program,and that
42the money should besetasideina special fund until the
43 Commission is able to review a complete and well detailed report
44 and negotiates an agreement.With regard to the Community Center
45 and the recreation program he said that it takes time for that
46to take off.He then urged the Commission not to reduce the
47 budget in any way with respect to the Community Center.
48
SPECIAL CITY COMMISSION
MINUTES -September 28,2004
1 David Tucker Sr.asusualspokewordsofwisdom.Hesaid
2thatwe exist because of something called trust and thathe
3 wanted to express his trust in government.
4
5GeorgeGarcia,aSouthMiamibusinessowner,spokeinfavor
6ofthespecialeventsandurgedthe Commission tokeep
7 supporting them.
8
9 John Portuondo,a South Miami commercial property owner,
10spokeabouttheincreasein property taxes which hesaidtohave
11 increased from 33%last year to 46%this year.
12
13 Mayor Russell explained thatthereisan administrative 3%
14 cap every year where the assessment ofa home cannot go up more
15 than 3%of the total property value ofthe property.The reason
16 for which Mr.Portuondo's assessment and taxes have gone up so
17highisnotsomethingthatwearecapableofdealingwithitat
18thislevel,itisa legislative issue,there is no homestead
19 exemption on investment properties and neither thereisacapon
20theassessmentonaninvestmentproperty.Shesaidthatthisis
21 something thatthe Commission willhaveto tackle,butitwill
22 have to be in Tallahassee.
23
24 Lydia White,aSouthMiamimerchant,urged the Commission
25to continue supporting funding for special events.She said that
26 the South Miami Arts and Crafts Festival is twenty-one years old
27 this year.She then mentioned some of the events that the
28 merchants have sponsored this year such as donating to the
29 holiday food baskets;awarding the police officers of the month;
30 giving away American flags for the 4th ofJuly celebration,and
31 also working there;donating a total of $3,000 to Charrettes
32 which led to the beautification of the downtown of South Miami;
33 they also have donated for holiday decorations and have
34 continued to sponsor "Safe Streets Halloween."
35
36 David Fry said that he would like to see a long-range
37 planning for the City.He then referred to the "Y"deal saying
38 that it sounds too good to be true.
39
40 Donna Mason spoke on behalf of Chamber South urging the
41 Commission to continue to support the special events.She also
42 urged to approve the proposed budget towards economic
43 deve1 opment.
44
45 Shantee Wells started to address the Commission by asking
46 how many directors there are in the City and how many of them
47 are part-time.She asked this to make the point that an
48 educational full-time director is needed.
49
SPECIAL CITY COMMISSION
MINUTES -September 28,2004
1Ms.Davis offered to sit down with Ms.Wells to explain as
2to why that position does not require a full-time director.Ms.
3 Davis also explained thatshehasmet with the Education
4 Director for the After-School Program.They discussed the
5 Director's concerns and by the end of the meeting she was happy
6 and feels that the changes thatthe City is making will resolve
7 her issues.
8
9 Ms.Wells continued to outline a number of her own concerns
10 with regard tothe After-School Program which in her opinion
11 have not been addressed.
12
13 Mayor Russell said that she will personally arrange a
14 meeting with her (Ms.Wells),the Parks and Recreation Director
15 and the City Manager to sit down and discuss the items that Ms.
16 Wells is concerned about.
17
18 Dan McCrea,former Commissioner and president of the Rotary
19Clubof South Miami,urged the Commission to continue supporting
20 the Arts and Crafts Festival as well as the economic development
21 effort.
22
23 Commissioner Sherar then exchanged some ideas with former
24 Commissioner McCrea astothe possibility of having a variety of
25 special events as opposed to having the same ones every year.
26
27 Al Elias said that he is in favor of all the festivals but
28 that he does not want to pay for it.He said that heisa
29 successful business person because he works hard and nobody
30 gives him money to keep him in business.With regard to the
31 millage he said that the solution is not to lower or raise it
32 but rather to control business growth.Mr.Elias then referred
33to the parking variance request by Dr.Colsky which failed to
34 pass ata previous meeting and urged the Commission to revisit
35 that issue.Commissioner Sherar said that he will be putting a
36 motion at the next meeting for reconsideration on that.
37
38 Lew Sellars said he would be addressing the Commission asa
39 resident of the City.He said that it will be up to the
40 Commission to weigh all pros and cons and make a decision based
41 on what they consider what will be best for the City asa whole.
42 He said that obviously keeping a low millage rate through the
43 years was one of the driving forces behind the financial
44 hardships the City went through last year.For this reason,he
45said,he has been inclined to allow the Manager to make the
46 necessary decisions to bring the City back on track and sound
47 financial grounds.He said that by next year's budget cycle he
48 will be able to assess the management approach over the period
49of two years.About the "Y"property,he said although he was
50 skeptic in the beginning,that through the process of the last
SPECIAL CITY COMMISSION 7
MINUTES -September 28,2004
1coupleofweekshehasseenthatthereare probably more
2 benefits associated with it and that in his opinion asa
3 taxpayer oftheCitytheyshouldgoforward with it.Aboutthe
4 Van Smith property,he said thathe voted against itinthepast
5 and still is not quite sure about the benefits of that purchase.
6 On the economic development he said thathe heard both arguments
7 and that he believes that itis too late in the game and that we
8 should put them on notice now;next year they will need tocome
9in and explain tothe Budget and Finance Committee how the money
10wasspent.Hesaidthatthemillageshould stay where it is,and
11thatthe$50 removal ofthe garbage feeis going toget offset
12bythesavingswearegoingtohaveonthedebtservice.
13
14 Commissioner Wiscombe said that he concurs with the idea of
15havingthemerchantscomeinandexplainafterthefestivals
16whattheyhavedoneandhowthemoneyhasbeenspent.Hesaid
17 that he would like toseethat process revisited and restarted.
18
19 Mayor Russell atthis point read a letter from Subrata Basu
20in support of the Arts and Crafts Festival.
21
22 After no further comments or discussion,the public hearing
23 was closed.Mayor Russell announced a 5-minute recess.
24
25 After therecess,the meeting reconvened and the Commission
26 discussion started.
27
28 Mayor Russell indicated thatthe Budget and Finance
29 Committee points toan additional $23,500 in contingency this
30year,and that isa good point,she added.She started by
31 referring tothe request from the Seniors.She said that the
32 proposed budget is $2,000 forthe Seniors;$2,000 for CRB;and,
33 $2,000 for theCommission for Women.The CRB held a retreat
34 which Commissioner Sherar and she attended;they have some great
35 plans and some great ideas.When we first funded them,the
36 funding was over $5,000 and thatwasoneofthe things wecut
37 last year in order to bring the special events expenses down.
38 About the Commission forWomen,the Mayor said that they will be
39 hosting the National Association of Commission for Women in Dade
40 County this year;they also sponsor theJr.Commission for Women
41 who are also very active and doing alotof good things.She
42 also asked for the Commission's support towards the Royal
43 Poinciana Fiesta which was a real success this year and it does
44 not block the streets.She also recommended that we create a
45 separate account for the "Y"funding.
46
47 Commissioner Wiscombe also recommended that not only the
48 money for the "Y"but also Mr.Scurr's pension be set aside.
49
SPECIAL CITY COMMISSION
MINUTES -September 28,2004
1 About the Farmer's Market Commissioner Wiscombe said that
2the Manager willbe meeting with Levy and Penny to discuss the
3 future of this event;therefore,the Manager recommended that
4the money should stay inthebudget.Commissioner Sherar isof
5the opinion that the right place forthe Farmer's Market isat
6 Madison Square.Commissioner Wiscombe does not think that the
7placeisrightduetolackof participation andvisibility.The
8 main problem of 'Madison SquareSaturdays'isthelocation,
9 Commissioner Wiscombe added.
10
11 Mayor Russell said that she is satisfied and confident with
12the majority ofthis year's budget.Forthe last several years I
13 have been the only person who have suggested that we might be
14 pinning ourselves intoacorner by keeping the millage rate
15 where itwas and deferring all these capital expenses.Forthe
16 first time I have agreed,shesaid,taking care of some of these
17 deferred expenses,because wehave been deferring expenses to
18 keep our millage rate low,and we had a battle between us this
19 year over spending outofthe reserve which is unacceptable to
20allof us in principle and philosophy because this items were
21 not budgeted and we had a need for them.Therefore,what we have
22 done isto present a real budget with allof our real needs met
23 so that there will be no need for those long late night
24 discussions that require 4/5 votes to spend money out of cash
25 reserves to buy items that we really need,because somebody
26 deferred it to keep the millage rate low to make everybody look
27 good politically.
28
29 Commissioner Wiscombe said that the reason why he has
30 pushed to keep the millage rate down or to reduce it,rather
31 than to increase it,is because the City Manager at the time was
32 over spending.
33
34 Mayor Russell said that her point in saying that was not
35 meant to be critical of anybody.She said that Commissioner
36 Wiscombe had a good point and itwas well taken atthe time and
37 understood.
38
39 Mayor Russell then proceeded to make a motion.
40
41 Moved by Mayor Russell to take $4,000 from the $23,500 that
42is excess in contingency this year and place $3,000 in the Mayor
43 and City Commission's budget:$1,000 for the Commission for
44 Women;$1,000 additional for the Seniors;$1,000 additional for
45 CRB;and,$1,000 to the Non-Departmental budget for the Royal
46 Poinciana Fiesta.To take $19,500 and place it towards the
47 reduction of the millage rate.The motion,seconded by
48 Commission Wiscombe,passed by a 5-0 vote.
49
SPECIAL CITY COMMISSION
MINUTES -September 28,2004
1 Commissioner Wiscombe:Yea
2 Commissioner Sherar:Yea
3 Vice Mayor Palmer:Yea
4 Commissioner Birts-Cooper:Yea
5 Mayor Russell:Yea
6
7 Mr.Oshikoya explained that the total amount of proposed
8 "one time"expenditures,$357,370tobe funded through cash
9 reserves shown on page XIofthe Proposed Budget,will be
10 disbursed through different accounts,for instance,the
11 settlement for $107,000 is under Non-Departmental,page 65,
12 line 2213.
13
14Mr.Oshikoya also explained about the amount of $245,000
15 shown also on page 65,line 2215,which $143,000 isfor both
16the "Y"and the Van Smith property;the remainder $102,000
17 constitute the savings mentioned bythe Manager inher
18 presentation ofthe "Y"earlier tonight,based onthe lower
19 appraisal received.
20
21 Commissioner Sherar recommended that the amount of $245,000
22 or portion thereof,be set aside for the purchase of the YMCA,
23 shown on page 65,line2215ofthe Proposed Budget,beput back
24 in the reserve until is needed to purchase the property.Ms.
25 Davis said that the reason she recommends to have it as proposed
26is because once the YMCA is purchased,it will become a
27 recurring expense.Thiswillbe representing an artificial
28 increase ofthe reserve and subsequently an artificial reduction
29 in the mill since we will need to raise it back the following
30year.Commissioner Sherarsaidthathefeels better by keeping
31that money inthe reserve because otherwise itis like asking
32 the residents to finance the Commission's decision.Ms.Davis
33 said that she is recommending what she believes is best but that
34itis really up to the Commission to decide.
35
36 Commissioner Sherar said that he wants to see the Van Smith
37 purchase happen and Mayor Russell said to concur with that.He
38 said that maybe wecangetMr.Van Smith to write usa three-
39 year mortgage.He said that he sees the Van Smith deal asa
40 reality;however,there are many contingencies with the YMCA.He
41said,put itin the reserve and ifwe need todo anything,pull
42it out of the reserve and that he will explain it to the
43 residents that the reason for raising the mill is because he
44 reduced it the year before.
45
46 Mayor Russell saidthatby putting itinthe reserve it
47 will still be encumbered.The request was to put itasa
48 separate line item,separate from the Van Smith property,so
49 that we can all look at it and know that it does not fluctuate
50 or change.If we just move itto the reserve now and put itina
SPECIALCITYCOMMISSION ^0
MINUTES -September 28,2004
1 separate line item isnot going to affect the bottom lineofthe
2 millage rate.
3
4 Commissioner Sherar recommended to takethat $143,000 out
5ofthe budget;ifwego through with the deal knowing that we
6are going totakeitoutofthereserve,thatisa1.5millthat
7wecan give back tothe taxpayers this year andif next year it
8 becomes a true recurring expense then we raise back the 1.5
9 mill.
10
11Mr.Oshikoya explained thatright now we have $245,000 for
12the purchase ofboththeVanSmithandthe YMCA properties.
13 Because ofthe low appraisal thatthe City Manager was able to
14 get,which is much lower thatthe original appraisal thatwehad
15 when we prepared thebudget,wenowhavea savings of$102,000.
16 That $102,000 savings can be used to reduce the millage by .114
17 mill.Out of the $143,000 left,$39,000 of that is going to be
18fortheVan Smith property,leaving a balance of $104,000 for
19theYMCA.This is based ona3 0-year loan using the information
20receivedfromtheLeague.Wearenotgoingtobeabletodothis
21throughtheLeaguebecausetheyrequirea minimum of$1 million
22loan,but we will look for another loan.We can put the $104,000
23in the reserve,raising the reserve from 1.3 to 1.4.When we get
24 all the information on the YMCA and we are ready to purchase
25 that property,we then take that money from the reserve.
26
27 Commissioner Sherar said that heis looking at putting the
28 $143,000 into the Van Smith property purchase.Mayor Russell
29 said to concur with that idea,however,this year we are not
30 prepared to make that decision.
31
32 Vice Mayor Palmer with regard tothe YMCA purchase said
33 that atthe beginning shewas concerned with the impact that it
34 would have on the taxpayer,and also,she did not have enough
35 information and too many questions unanswered.She was also
36 concerned about the financial situation the City had gone
37 through and did not want toget into further debt.She was also
38 looking forward to reducing the millage somehow.However,based
39 on the information she has now after meeting with the City
40Manager,she now agrees with the reasoning behind this
41 acquisition.Shethen recommended thatthe money be placed ina
42 separate account.She also said to agree with finalizing the
43 purchase oftheVan Smith property.TheVice Mayor then again
44 referred tothe garbage canfee reimbursement tothe residents.
45Ms.Davis said that the money will have to come out of the
46 reserves and it will be about $150,000.
47
48 Commissioner Sherar asked if the residents have paid for
49 the garbage cans.Ms.Davis explained that some people have paid
50 and some have not because WASA bills in cycles and in order to
SPECIAL CITY COMMISSION j.1
MINUTES -September 28,2004
1mitigatethe burden,wetoldthemtobreakitdownintotwo
2 different cycles,$25/$25.Mr.Oshikoya saidthathebelieves
3thatthepeoplethathavepaidaretheonesthattheCitybills
4becausetheyareonwell water.Ms.Davissaidthatthe
5 residents have been billed because the Mayor has gotten hers,
6addingthat evidently theCountyhas billed theresidentsbefore
7 we finalized the Interlocal Agreement.
8
9ViceMayorPalmerthenaskedastohowlongitwilltake
10 for the refunds to be made.Ms.Davis said that we need to
11 identify those residents that have beenbilledandthenworkit
12out with WASA toseewhotheyhave billed todateandrefund
13 those residents.She then referred again to her decision to
14supportthepurchaseofthe YMCA.Ms.Davissaidthatweneed
15park space,weneedgreenspacefor concurrency,andthatshe
16believesthatthisisgoingtobeacatalystforeconomic
17 development inour business district.She added thatweare
18gettingtheten-acrepropertyatagreatpriceandthatshedoes
19notseea downside.Vice Mayor Palmer concurred saying that
20 there isno place inthe whole County where we can buy ten acres
21oflandforthatprice,needlesstosayin South Miami.
22
23 Mayor Russell then asked Mr.Oshikoya asto whether weare
24 clear on the WY."
25
26 Commissioner Sherar then referred to the issue of impact
27 fees and Mr.O'Donniley explained the concept.
28
29Mr.Oshikoya then explained that because ofthe lower
30 appraisal received onthe WY,"insteadof$245,000 originally
31 projected wewill only need $143,000for both the WY"andthe
32VanSmithproperties,andoutofthose$143,000,approximately
33 $39,00 will be for the Van Smith property,based on a 30-year
34 loan as per the index received fromtheLeague;therefore,the
35 remainder $102,000 canbe placed inthereserve,raising the
36 reserve from $1.3 to $1.4.
37
38 Moved by Commissioner Sherar,seconded by Mayor Russell,
39 the motion to set aside $143,000 and put it under a "Park-
40 Purchase Account,"passed by unanimous acclamation.
41
42 Hakeem then verified with the Commission that we are
43 banking the $102,000 towards the .114 reduction.
44
45 Moved by Commissioner Sherar to eliminate the amount of
46 $107,000 on page 67,line 2277.The motion died for lack of
47 second.
48
SPECIAL CITY COMMISSION 12
MINUTES -September 28,2004
1Movedby Commissioner Sherar,seconded by Commissioner
2 Wiscombe,on "Contribution-Special Events:"to reduce S.Miami
3 Arts Festival by $840;Art Expo by $840;S.Miami Arts &Crafts
4 by $840;and Footworks Fun Run by $480.
5
6MayorRussellsaidthatFootworksputalotofeffortinto
7theireventthisyearin conjunction with the Japanese Festival
8and they brought alotofpeople,itwasagreatevent.Shesaid
9 that she does not know what they can dofor $1,000.
10
11 Commissioner Sherar said that he understands that the event
12is pure commercial.
13
14Vice Mayor Palmersaidthatthey should deferthese
15 reductions until the next time around so that they may be
16 notified ahead of time.
17
18 Commissioner Wiscombe said that they are looking ata
19 minimum reduction compared toothertimes where they have been
20 cut in half.
21
22 With no further comments or discussion,the motion to reduce
23 $2,920 from line 2273 on page 67,Account No.210-519-9910 passed
24 by a 5-0 vote:
25
26 Commissioner Wiscombe:Yea
27 Commissioner Sherar:Yea
28 Vice Mayor Palmer:Yea
29 Commissioner Birts-Cooper:Yea
30 Mayor Russell:Yea
31
32 Ms.Davis made the clarification that Footworks had donated
33 $3,000 to the After-School Program this year.
34
35 Moved by Commissioner Sherar,seconded by Commissioner
36 Wiscombe to put back $480plus$20tothe Footworks line item.
37 The motion passed by a 5-0 vote:
38
39 Commissioner Wiscombe:Yea
40 Commissioner Sherar:Yea
41 Vice Mayor Palmer:Yea
42 Commissioner Birts-Cooper:Yea
43 Mayor Russell:Yea
44
45 Commissioner Wiscombe asked about the conditions of the two
46 Cushmans.He said that they use tobe around downtown but he does
47 not see them any more since they gotthe new car,and that is not
48 good because that means that they are not rotating the vehicles.
49
SPECIAL CITY COMMISSION I3
MINUTES -September 28,2004
1 Ms.Davis said that the Cushmans were down a lot and that
2 she was amazed to see the time that we lost last year because of
3 that.
4
5 Commissioner Wiscombe asked Ms.Davis that he would like to
6see that accounting,to please provide ittohim.Ms.Davis said
7 that she will be happy todoso.
8
9 Commissioner Sherar said that he had seen them and that he
10 was surprised that they run atall.
11
12 Commissioner Wiscombe inquired about the Proposed Revenues
13 under General Fund,page 002,on the dropped of $20,000 for
14 parking revenues.Ms.Davis explained thatthe amount was reduced
15 because of possible construction next year,in the event that we
16 construct a parking garage,therewillbea down time.Then,he
17 referred again topage 002,underGeneral Fund,line98(Tennis
18 Membership-Non-Residents"with '0'amount onthat line item.Ms.
19 Davis said that we are under a contract now,but she said that
20 she did not know about the membership.She said that also the
21 expenditure ofthe Tennis Court instructor wascut by $17,000.
22
23 Commissioner Wiscombe then inquired about the contract on
24the old inspection station asking when itwillexpire.Ms.Davis
25 indicated that it already didandis now ona month-to-month and
26thatsheis working on putting it back outtobid.She said that
27theyarelookingattwodifferentmodels:one,torotatewith
28 several different vendors;and the other one is to rent to the
29vendor with thehighest bid.Shesaidthatsheisnot happy with
30 the revenue we are getting now.
31
32 Commissioner Wiscombe then referred to page 004,line 34,
33 under Departmental,and inquired aboutthe increased amount of
34 $33,000 from 03-04.Ms.Davis said that the raise that she
35 requested isin there and any merit increase for the two
36 individuals in her office.He also referred to the increase on
37 line 45of the same page.
38
39 Moved by Mayor Russell,seconded by Commissioner Sherar the
40 motion to extend the meeting beyond 11:00 p.m.passed by
41 unanimous acclamation.
42
43 Staff continued to explain to Commissioner Wiscombe the
44 revenues from solid waste on page 002.
45
46 Moved by Commission Sherar,seconded by Vice Mayor Palmer
47 and Commissioner Wiscombe,the motion to strike $4,000 from line
48 item 170,page 009 under xCity Clerk'passed by a 5-0 vote:
49
50 Commissioner Wiscombe:Yea
SPECIALCITYCOMMISSION 14
MINUTES -September 28,2004
1 Commissioner Sherar:Yea
2 Vice Mayor Palmer:Yea
3 Commissioner Birts-Cooper:Yea
4 Mayor Russell:Yea
5
6 Moved by Commission Wiscombe,seconded by Commissioner
7 Sherar,the motion to strike $800 from line item 752,page 028
8 under xCity Attorney'passed by a 5-0 vote:
9
10 Commissioner Wiscombe:Yea
11 Commissioner Sherar:Yea
12 Vice Mayor Palmer:Yea
13 Commissioner Birts-Cooper:Yea
14 Mayor Russell:Yea
15
16 The line item for xTravel and Conference'under 'City
17Attorney'intheamountof$1,200was discussed and explained by
18the City Attorney astothetypeof conferences that they attend
19 which are mainly about municipal law.The item was left as
20 proposed.
21
22 Moved by Commissioner Wiscombe,seconded by Commissioner
23 Sherar,the motion to strike line item 2281 on page 67 in the
24 amount of $3,000 for xRed Sunset Holiday Events'passed by a5-0
25 vote:
26
27 Commissioner Wiscombe:Yea
28 Commissioner Sherar:Yea
29 Vice Mayor Palmer:Yea
30 Commissioner Birts-Cooper:Yea
31 Mayor Russell:Yea
32
33AtthispointMs.Davis explained to Commissioner Sherar
34 that the reason for moving line item *Consultant-Labor Attorney'
35to Non-Departmental isbecausethatisanexpensethatsheincurs
36 rather than the City Attorney.Commissioner Sherar said thathe
37 would like to see that item under *City Attorney.'
38
39 Moved by Commissioner Wiscombe,seconded by Sherar the
40 motion to take off $10,000 from line item 2217 on page 65 *Street
41 Beautification'passed by 5-0 vote:
42
43 Commissioner Wiscombe:Yea
44 Commissioner Sherar:Yea
45 Vice Mayor Palmer:Yea
46 Commissioner Birts-Cooper:Yea
47 Mayor Russell:Yea
48
SPECIALCITYCOMMISSION ^5
MINUTES -September 28,2004
1 Commissioner Wiscombe then inquired about the "Economic
2Development'item.Ms.Davisexplainedthatoneofthe
3 expenditures there would beforthesixmarquees.Shesaidthat
4theywillbeleasedandwearewaitingfor estimates;printing
5brochures;hiringmusiciansandother entertainment.Shesaid
6thatforthecostof blocking thestreets,sheis planning on
7 coming outofthePoliceandPublicWorksbudgets;thatisnot
8 coming outofthe $50,000 which isfor promoting downtown.Asfor
9 the brochures,they will be distributed atthe airport,hotels,
10etc.Ms.Davis said that she will keep the Commission informed
11 about all the expenditures incurred for Economic Development.
12
13 Commissioner Sherar then referred to the $200,000 in this
14 year's budget for deferred pension which should had been spent
15twoor three years ago.MayorRussell urged Commissioner Sherar
16to attend the next Pension Board meeting so that it can be
17 explained to himhow thatworks.Healso inquired about therent
18that Chamber South pays theCityfor using the facilities at
19 Fuchs Park;Ms.Davis said that she made a note of that.Mayor
20 Russell asked Ms.Davis to respond to Commissioner Sherar on that
21andcopytherestoftheCommissionfortheir information.
22 Commissioner Wiscombe also asked fora copy of the contract to be
23 placed in their mailboxes.
24
25MayorRussellrecappedtheaboveamendments:$102,000for
26the UY;"$19,500outofcontingency;$2,540for contributions to
27SpecialEvents;$4,000forelections;$800for City Attorney
28membership;$3,000forRedSunset Holiday Events;$10,000for
29 street beautification.For a total of $141,840 (Hakeem clarified
30thathehad$142,800)indicatingthat with allthese reductions
31 they will be able to reduce the millage by 1.60.
32
33 MovedbyCommissioner Sherar,secondedbyCommissioner
34 Wiscombe,the motion to table item no.2 passed by a 5-0 vote:
35
36 Commissioner Wiscombe:Yea
37 Commissioner Sherar:Yea
38 Vice Mayor Palmer:Yea
39 Commissioner Birts-Cooper:Yea
40 Mayor Russell:Yea
41
42 Moved by Commissioner Wiscombe,seconded by Vice Mayor
43 Palmer,the motion to bring item no.1 back on the table passed
44 by unanimous acclamation.
45
46 Ordinance No.09-04-1816
47 1.AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
48 CITY OF SOUTH MIAMI,FLORIDA,LEVYING THE MILLAGE OF
49 7.3737.213 WHICH EXCEEDS THE ROLLBACK RATE OF 6.524 BY
SPECIALCITYCOMMISSION 16
MINUTES -September 28,2004
1 13.0%10.56%AND RESULTING IN 4%2.17%INCREASE
2 DECREASE IN PROPERTY TAX RATE IN THE CITY OF SOUTH
3 MIAMI,FLORIDA,FOR THE FISCAL YEAR 2004/2005;
4 PROVIDING FOR SEVERABILITY;ORDINANCES IN CONFLICT AND
5 AN EFFECTIVE DATE.3/5
6 (City Manager)
7
8 Moved by Commissioner Sherar,seconded by Commissioner
9 Wiscombe to approve this item.
10
11 At thistime Mayor Russell opened the floor for public
12 hearing.
13
14 Yvonne Beckman referred tothe comparison chart that she had
15 presented for the Finance Department saying that allthe
16 departments at Pinecrest arelower.She also noted that the Risk
17 Management Department is included inthe Finance Department in
18 Pinecrest.
19
20 With no more speakers,the Mayor closed the public hearing.
21
22 Moved by Mayor Russell,seconded by Commissioner Wiscombe to
23 approve the amendment provided by the Finance Director:levying
24 the millage of 7.213 which exceeds the rollback rate of 6.524 by
25 13.0%10.56%and resulting in 4%2.17%increase decrease in
26 property tax rate in the City of South Miami.The motion to
27 approve this amendment,and this item as a whole,passed by a 5-0
28 vote:
29
30 Commissioner Wiscombe:Yea
31 Commissioner Sherar:Yea
32 Vice Mayor Palmer:Yea
33 Commissioner Birts-Cooper:Yea
34 Mayor Russell:Yea
35
36 Moved by Commissioner Sherar,seconded by Commissioner
37 Wiscombe the motion to bring item no.2 back on the table passed
38 by unanimous acclamation.
39
40
41 Ordinance No.10-04-1817
42 2.AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
43 CITY OF SOUTH MIAMI,FLORIDA,ADOPTING A BUDGET OF
44 $11,242,617 $14,099,817 AND PAY PLAN FOR THE 2004/2005
45 FISCAL YEAR;PROVIDING FOR SEVERABILITY;ORDINANCES IN
46 CONFLICT;AND AN EFFECTIVE DATE.3/5
47 (City Manager)
48
SPECIAL CITY COMMISSION 17
MINUTES -September 28,2004
1 Moved by Commission Sherar,seconded by Commissioner
2 Wiscombe to approve this item.
3
4 Moved by Commissioner Sherar,seconded by Commissioner
5 Wiscombe,the motion to amend this item and to adopt a budget of
6 $14/242,617 $14,099,817,and to approve this item as a whole,
7 passed by unanimous acclamation.
8
9
103.Adjournment
11
12
13 COMMISSION REMARKS
14 (None)
15
16
17 There being no further business to come before this Body,
18 the meeting adjourned at 11:52 P.M.
19
20 Approved
21 Attest
22
23
24 Maria M.Menendez Mary Scott Russell
25 City Clerk Mayor
SPECIAL CITY COMMISSION to
MINUTES -September 28,2004