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HomeMy WebLinkAbout2011-0809 City Commission Workshop Draft Summary Minutes City Commission Workshop 4th Floor Conference Room Tuesday, August 9, 2011, 12:00 p.m. City of Sunny Isles Beach, Florida ATTENTION ALL LOBBYISTS: CITY LAW REQUIRES YOUR REGISTRATION PRIOR TO ENGAGING IN LOBBYING ACTIVITIES BEFORE CITY STAFF, BOARDS,COMMITTEES OR THE CITY COMMISSION. PLEASE CONTACT THE CITY CLERK FOR FORMS AND ADDITIONAL INFORMATION. AGENDA 1. Call to Order/Roll Call of Members The meeting was called to order by Mayor Edelcup at 12:09 p.m.,with the following officials present: Mayor Norman S. Edelcup Assistant City Manager/Services Jorge Vera Vice Mayor Lewis J. Thaler City Attorney Hans Ottinot Commissioner Isaac Aelion Assistant City Manager/Finance Minal Shah Commissioner Jeanette Gatto City Clerk Jane A. Hines, CMC Commissioner George `Bud' Scholl Mayor Edelcup gave opening remarks, and welcomed representatives of the Miami-Dade County School Board: Paul Greenfeld, Ana Rijo-Conde, AICP, Jamie Torres. and Jerold of Dr. Martin Karp's Office. 2. Discussion on Overcrowding at the Norman S. Edelcup/Sunny Isles Beach K-8. Action: Mayor Edelcup said that the K-8 School has been a resounding success, so much so that they are over capacity and we now need to address that particular problem knowing that there will be more and more children going to this School and we need to provide the facility for them. Vice Mayor Thaler has been ramroding this project from our side, and he knows that Ana and everyone has been working to come to a solution. Vice Mayor Thaler said that the registration is already over where we actually ended last year, and so we will have a big increase of students] to start 2011/2012. The Commission has received a copy of the information the School Board provided him, and they did have some objections to just handing over the money for the building. The biggest problem that occurred is the fact that the City has been promised over and over again that illegals would be gotten out of that school and that the County would be proactive in getting them out and we really have not seen it. We believe there is a substantial amount of people who should not be in that school,and that is part of the reason why we need these 12 rooms to grow, and just to put up the building without having them gone, we feel is not right. Before we discuss the dollars and cents and where it is coming and when it is needed, we would really like to hear from you what is being done,and what will be done to get the enrollment down to just the legals within the system. That is one of the major sticking points in this whole program. Paul Greenfeld gave some background on the school system,there are four(4)administrative regions, there is a regional center, and they cover 68 schools which cover all the Miami Beach Summary Minutes:City Commission Workshop August 9.201 I City of Sunny Isles Beach.Florida Schools from South Point to Sunny Isles Beach,Aventura,North Miami,North Miami Beach, and part of Miami Gardens. When all the schools that have its own reputations, virtually every one of them has an issue with out of area students that find ways,sometimes legal ways, and many times illegal ways, of getting their children into the schools. It is very difficult for the schools themselves because they don't have the personnel to knock at every door of every student that registers at the school. Now, Sunny Isles Beach has some resources available that some other schools do not. The City is providing Police Officers, and he knows that they have gone out and conducted home visits to the extent they can within the City of Sunny Isles Beach because they don't have jurisdiction to go into Hallandale or other areas outside their jurisdiction. It is a problem and he knows that Dr. Annette Weissman has been very vigilant about doing everything within the bounds that the School Board allows, to be able to verify addresses that are provided in the information that is authentic, people that come in actually do live within the boundaries of the school. We have been adamant about denying student transfers even for siblings because what we did a couple of years ago was a very gradual kind of implementation of a boundary change which started with students that had not been at the school, and directing them to another one of our excellent schools. We are still in the early stages of that, and so you haven't seen the proof of that. Mr. Greenfeld said there is a Task Force that was started by our Superintendent to look at strategies to amending the School Board rule to allow other types of verifications that are not currently allowed by Home Rule. A study has been done of every other district virtually every major district in the State of Florida, tools they utilize to verify parents addresses, that the child is actually living with the parent, we don't accept things like they are living with Grandma or cousins, etc., and we verify if the parent has turned over legal custody of their child. We get into the legal issues, we get into many issues that are very problematic at such schools as this, Aventura Waterways,Alonzo and Tracy Mourning Senior High School. Just to give you a hypothetical at how far a parent will go, we had a parent that applied for a transfer to Alonzo and Tracy Mourning Senior High School and was denied due to overcrowding, the parent rented an apartment in the area, and somebody went out from the school to verify that they were living there. There were clothes in the closet but do we really believe the child is living there, no, but based on those rules that we are currently governed by, so people with financial means may be renting places and doing things that, and as there are vacancies in some of these high rises that are open to rentals, people will do that just to get their child into that school, they are committing fraud but it is very hard to enforce that. And so, do I believe that there are any children at Sunny Isles Beach that do not belong there,yes he does. How do we identify them, and how do we get them out is an ongoing issue. Vice Mayor Thaler said was there not a special meeting held where the rules were supposedly being changed,and Mr. Greenfeld said that there has been a series of those meetings,and Dr. Martin Karp our Board Member representing this area, has been very involved in that, in fact he actually brought forth the initiative to start that Task Force, and Mr. Greenfeld serves on that Task Force, we did have a meeting towards the end of last fiscal year, and some final things were going to be proffered to our Superintendent but another meeting has not been called and so he was not privy to what was determined or still underway to make some final recommendations that would go to the entire school. 2 Summary Minutes:City Commission Workshop August 9,2011 City of Sunny Isles Beach,Florida Commissioner Aelion said historically this has been a problem but what steps have been taken to improve this problem,when you enforce the rules and change the rules to accommodate the end result, and he doesn't know why they have only been looking at this recently when the problem has been ongoing. Mr..Greenfeld said he can't answer for district policy that has been established for a long time but it has been long standing as to what types of identification,what types of proof of residency can be requested by a school. Can the schools go out and verify that, yes but in many cases they are very short staffed and don't have the resources to be able to send somebody out. When something is reported to them where they do suspect that cars are coming over from the Broward line, that information is provided to the school administration and they do follow up when in some cases,those children are forced to withdraw immediately into their new schools. Mayor Edelcup said that he thinks one of the problems we have is a personal incentive to make sure there is adequate space for the children who live in our City to go to this school, unfortunately the School Board itself doesn't have that same impetus, they get per capita no matter where the kid comes from they are going to get paid by the State to have that kid educated there, and so it is not the same feeling and he is sure that it is not as high on their priority list because they are going somewhere within the Miami-Dade system whether it is in Sunny Isles Beach or a neighboring City and they are going to collect the same dollars either way and so why spend the extra dollars to weed them out when they are going to wind up costing money for themselves and not have those dollars available for education, and so the incentive is not quite the same unfortunately. Commissioner Scholl said the fact is Dr. Weissman has not been vigilant. He sat with her personally about 18 months ago and offered her IT support,offered her Police support,offered her whatever she needed, no follow-up, she gave him good lip service but no follow-up. My neighbors on many occasions their kids play with kids from Broward County who go to the same school with them. Again, there has not been an atmosphere of wanting to police this from day one. He appreciates their position and within the School Board, he can promise them that there has not been an atmosphere of wanting to deal with this issue, and the atmosphere hasn't been there from day one. On the contrary, he would say from day one it was a very open door policy, but we have gotten very little support. Now that you all need something, he feels like maybe we will get some attention. But you just sat here and told us all the reasons why you can't enforce, we need a plan, and Mr. Greenfeld said that they try to enforce it. Commissioner Scholl understands that but there is a disconnect between what is happening at that school and your state of mind, what you just described, it is a big disconnect. He said he went to the Commission and he said let's give him IT support, let's give them whatever they need because all he keeps hearing is that they are short staffed,they can't follow through. We offered it up, no follow-through, it could be they didn't want it to happen. The truth of the matter is, for whatever reason there is a mentality that this is not something that they really want to deal with on a vigilant matter. Now maybe with the overcrowding the tide is starting to turn but unfortunately once you open the flood gates, it is very hard to go back, and he knows now that it is very difficult. You have kids at the school and he feels terrible but he blames the parents,the parents shouldn't put kids in that situation where they have to live under the guise of not really being within a community that they go to school under. He said what he would like to see before we really took any agreement with the School Board seriously is a Plan of Action that says this is what we can do,this 3 Summary Minutes:City Commission Workshop August 9,2011 City of Sunny Isles Beach,Florida is how we are going to attack it, timelines, deliverables, and whatever is within their power because the fact of the matter is that they are asking us for a huge commitment, and dealing with this overcrowding issue with the school because of the district jumpers, the amount of resources you really have to put on there to do it effectively is a drop in the bucket compared to what you are asking us to do. He feels like all we are doing is throwing more money at the problem because you all aren't doing what you are supposed to do in terms of being vigilant about this. He agrees that it is a system-wide problem,and he understands why parents do it,and it is hard to get parents that care for their kids passionately and want the best education for them. He knows the School Board is up against something that is very permutable and he respects that,but he also does not feel that that school ever had the political will to deal with this issue. He feels it started off on a wrong foot and it just escalated from there, and it aggravates him given the amount of resources that we have put into the school in the first place for our own community that we are now in this situation because of a lack of vigilance. He is pretty convinced that the numbers are a lot bigger than anybody believes it is, and it is going to be hard to prove the size of the number. Vice Mayor Thaler said that we have offered over and over again to use our computers,to use our Police force,and nothing has been done. There has been no request for anything,and this has been every single year from day one,we have gone to the Principal,we have gone through with you that we would use whatever ability we had in our computer area, and in our Police force to get them out of here. As late as today he has spoken to Dr. Weissman and she said that people are still coming in and they are bringing in paperwork showing that they are living with their Grandparents. Are they really living with their Grandparents or is it just a piece of paper. We don't see anything being done and this is why we are here for this meeting. This is the principle of the meeting, to throw good money after bad for somebody who is living in Hollywood or Hallandale Beach or somewhere else in this area, we are not willing to do it. This is Sunny Isles Beach money, this is for the people of Sunny Isles Beach and Golden Beach the way it is set up, why give the money if we are not going to see the correction. Commissioner Scholl said that you are getting very creative about your financial problems by coming to municipalities and leveraging off their bonding capacities. We are not putting the same kind of creativity into these kinds of issues and that is where he is coming from. He is saying to show us the kind of vigilance and creativity that you are coming up to deal with your backflow issues because frankly this is the root of all your problems. The schools wouldn't be so crowded if you put the same kind of vigilance and creativity into dealing with these kinds of issues as well. Now our case is a special case because obviously now you are coming to us for something and the irony of it is that he knew the day of reckoning would come eventually because as he was frustrated over the years we knew it would eventually come back around, and so unfortunately this is an issue that we are absolutely going to need deliverables on. Before he puts any of the City's resources in, he will want to see a very clear plan. Mr. Greenfeld said he doesn't think he needs to come to the defense of Dr. Weissman whose life is that much more difficult because of overcrowding, and to say she doesn't have an interest in this, and Commissioner Scholl said she is a great principal however the spirit of that school from the day it opened has not been one of vigilance dealing with district jumping, that is a personal opinion and that is the opinion shared by a lot of parents. The parents feel it is a very loose environment for getting their kid in that school, so however we want to 4 Summary Minutes:City Commission Workshop August 9.2011 City of Sunny Isles Beach.Florida sugarcoat it at the administrative level or at the decision making level it is what it is, and unfortunately it is true because now we are dealing with the problem,now we are dealing with the aftermath of that, and it is very hard now to unseat that. He firmly believes that you all have resources and the ability to deal with this in a diligent manner if you want to. If there is a lot of money on the line,that usually incentivizes everyone in the right direction. That is the central issue from our perspective. • Commissioner Aelion said the creative part is finding a way to monitor this. Where are the parameters of the hours spent in a certain property to say that is actually where they live. Mr. Greenfeld said it is the resident's address of the parent that they go by, and just because the Grandma brings the child to school and picks up and goes to the Grandma's house within the City that by rule does not mean that that child should be attending this school because it should be the parent's address. Commissioner Scholl said all he is saying is that if somebody lives in the City and their kid is going to school, if it is a Grandma at least she is paying taxes, he could almost live with that. If that was the only issue we had there would be a couple hundred less students in that school. Commissioner Gatto said Grandma is equal to a day care center and that really is not fair. She asked if there was any kind of penalty that could be imposed if a kid gets caught, in other words, on the backend take a look at it and if they get caught they have to pay, like$500 or something that would scare people into not doing it. Mr. Greenfeld said that the State Attorney's Office would have to do that. Commissioner Scholl said we are stuck with the parameters to work with right now because anything else would have to be at a School Board and it is hard to get but the fact is that they do have parameters that they can work with. It is just a matter of resources from his perspective, if you put enough resources on it, we could deal with it. Vice Mayor Thaler said he has three children in different States and they harass the people far more than we do here, two or three times a year they have the parents come in and verify and re-verify the fact of where they live. We are not harassing the people enough and letting the public know that it is happening, these are things that are all covered up. Commissioner Gatto said the data base is a wealth of information which is the condo, there are so many of them here in Sunny Isles Beach. If you go there and talk to the board members or the property managers and go into the data base and you can find out who lives there. Mayor Edelcup said the most exasperating part of the whole thing is we really don't even know how many we are talking about, and because we don't know we hear numbers either ridiculously low or ridiculously high. It is just frustrating because as elected officials we are bombarded daily by our residents that want to see this resolved. We don't even have an idea the number and if we don't have an idea, than we suspect the School Board has no idea and then at that point there is a lack of confidence in whatever we are doing. Vice Mayor Thaler said we even have two numbers on the teachers,we permitted the teachers if they are working there to have their children there, and we have been told as high as 42 and as low as 9. Commissioner Scholl said there is nothing wrong with that, he is all for that, and we had hoped that City employees would be able to have their children in this school but we had to nix that because of the overcrowding issue. 5 Summay Minutes:City Commission Workshop August 9,2011 City of Sunny Isles Beach,Florida 3. Discussion with Representatives of the Miami-Dade County School Board on Expansion Plans for the Norman S. Edelcup/Sunny Isles Beach K-8. Action: Ana Rijo-Conde, AICP, handed out an updated description of Scope of Work and Cost Estimates along with a proposed site plan for the classroom addition. She said she hears their concerns and understands where they are coming from and she thinks she is speaking for everybody when she says that the School District and School Board are extremely thankful for the City's participation and cooperation in everything that we have done here, and they value that relationship. Ms. Rijo-Conde said she thinks the City,to a certain extent, is getting younger in that you are attracting some of the high powered younger families who want the quality of life that the City provides not just the school but the beautiful Parks. With that in mind and looking into the future, she thinks there will be an insurgent with younger families with children moving into the City. They were looking at this opportunity as a two-prong approach: on a short- term basis which may be linked to a Plan of Action to deal with maybe some out of area children, and we are looking at a larger picture. The short-term is the Executive Summary adding a third and fourth floor on top of the existing cafeteria because that is the highest structure. We think we can do it within the confines of the campus,and would be physically adding 12 classrooms all with individual bathrooms which would produce approximately 264 student stations. They foresee if they are able to execute the Interlocal Agreement between the City and the School Board, they would start the design which should take about 8 to 10 months to go through permitting,etc.,and then about a year for construction. They would try to cause as little disruption to the operations of the school as possible but there would be a period when some of the dining facility will not be entirely available to them. Ms. Rijo-Conde said it is doable,and is a doable plan, it is cost effective because they would be actually going into the existing part of the campus, and it would add some much needed classrooms with that which gives it some flexibility as well. They are estimating, based on their preliminary discussions with their Architect of Record,including the furniture, fixtures, everything we will be looking at about$4.5 Million for the total project,which is not,taking into consideration that we paid$25 Million(half and half)for the property,this seems to be a very cost effective way of adding both stations. Ms. Rijo-Conde said that they also looked at another option which is a longer term option, and we recognize a future projected need and is going to be in the unfunded schedule for the time being, but they would like to put a place holder in their five-year plan to address the possible need for future off-site relief. They were hoping for example as the property that is adjacent to the school which has a co-op building,and so that is one of the options and there are not too many options in Sunny Isles Beach in terms of property to acquire. But they are proposing to the School Board in September to again put that place holder in their five-year plan just to recognize that we foresee any in the future for additional relief. They are putting in about$10 Million in the unfunded category which accounts not just for the construction of the project but would account for the purchase of the property which would be about half of that cost. So it is unfunded,on an annual basis means we visit exactly where we are and she is sure the Commission would want to be a part of that process. If you want to follow through whatever Plan of Action has been recommended, as some of these children do not live in the City. They will take a look at the data again and try to see if in fact that the two- 6 Summary Minutes:City Commission Workshop August 9,2011 City of Sunny Isles Beach,Florida year need ahead of them, or three-year need, or five-years down the road doesn't mean conditional. Funding, we are trying to look at this in a more global light. We have had similar problems in other areas where we have very successful schools and people always seem to find a way to get in there,and she knows they have a problem with a couple of other cities, and a plan to try to attack all of these issues. Commissioner Scholl asked to talk School Board finances,and he heard the term the bonding capacity was maxed out, and so he asked for metrics now on your revenue versus your debt service versus if we get a credit enhancement,etc. How is it structured and how does it stack up against your existing capacity. Ms. Rijo-Conde said over the four years we have lost a considerable amount of revenue not just due to the decrease in qualified monies from the capital,but also as a result of the market, and Commissioner Scholl said right your shrinking assessment. She said most if not all of the revenues they receive presently goes toward either the payment of the debts that they issued or for maintenance expenses, and so there is basically nothing left to go out and issue additional debt. In fact this year we have made significant reduction to our work force to be able to balance the budget which was very painful because people are actually on the street but we took some significant drastic measures to be able to keep within that,that we have coming in. We do have a problem with short term, short to mid term, she thinks it is anywhere from seven to ten years before they can issue any additional debt. What they are trying to do is basically engage in a collaborative effort where if that particular local government has the ability to issue a debt, they would enter into an Interlocal Agreement with that City and the exact increments would have to be figured out but they could probably offer some security to secure the debt. They are dealing similarly with the City of Miami and Key Biscayne. What we are looking for is the debt issuance upfront and then a Interlocal Agreement that is binding with a promise to be paid from the School Board over a number of years and typically the debt would be issued for a 20-year term. This is a small amount in comparison. If their debt issuance capacity were to look significant more favorable in the next five years then they would have the option to pay this more quickly, which we did with the City of North Miami and they turned around two years later and paid it off and that was $124 Million worth of unsecured debt. The way they like to approach this is by you sharing in the cost of the program,the project. They spoke to their Treasurer and because of the amount,we think we will be able to start repaying once the debt is issued. And we had talked about a possible 50/50 collaborative effort. Vice Mayor Thaler said one of the questions that came up is when will you need the money to get this thing off the ground, and Ms. Rijo-Conde said we have tentatively included this project as funded assuming we can work out a collaboration. We would first need to do the design, etc. and have the funds available for FY 2011/2012, and then the balance available for the actual construction award because we can't award the project without having the dollars in place,which would be about$3.2 Million with the walkway connected,and so she would say probably if they had in the vicinity of$500,000 to $600,000 the first year, that would allow them to complete the design, engineering etc., with the money for the construction coming in the following year, and that could be worked into the Interlocal. Mayor Edelcup asked if we could create something like a line of credit that is collateralized by something, that would make some sense. In the financing structure because you can't issue"debt", there won't be a bond of evidences this loan,are you predicate in any way from 7 Summary Minutes:City Commission Workshop August 9.2011 City of Sunny Isles Beach,Florida structuring a line of credit if we were acting like a bank in effect that would advance funds against the job but collateralized with something of tangible value since we are putting up money. She said the finances for this school will most likely be done under a Certificate of Anticipation which is in essence a bond we would create the Ground Lease, we would not be able to collateralize any other piece of property, we can check on that in more detail with their Treasurer which she would have to be involved in these conversations, etc. Mayor Edelcup asked what kind of binding instrument she sees that she could issue that would make the thing happen. She said she never has seen the School Board renege on any of its obligations, even in hard times, our Treasurer and our finance people are extremely conservative and so they always make sure when we get into an arrangement that they can satisfy the obligation,and good faith and good will of the School Board goes a long ways and you can bank on that. Mayor Edelcup said for us to advance funds we have to advance it on some instrument, and some instrument has to be created. Commissioner Scholl said they are saying it is going to be an unsecured obligation. Mayor Edelcup said we need to know how we are going to do it before we can even commit to doing it,there has to be some mechanism set up. Commissioner Scholl said that it might be interesting to see what the deal with Miami was in terms of the legal instrument because clearly that wasn't collateralized. Vice Mayor Thaler said that you have stated that you are working with two other cities, where do they stand and what are they getting to collateralize it, and Ms. Rijo-Conde said that they are basically of their dealings with the CRA for the City of Miami and that entails the possibility of replacing a whole school with a different type of school,and they have their own debt issuance mechanism. The revenue stream for them is the tax increments that they are getting off from above and beyond their program. We are not at the point where we worked out all of the instruments, we are almost at the same level as all the municipalities. She is certain that their Treasurer and finance people could come up with something that would be acceptable to both parties by having some conversations and dialogue with your finance people. Mayor Edelcup said where he thinks we are at is that we would all like to see the expansion of the school take place, we set some preconditions that we already talked about at the beginning of our meeting. We are at a position now where we probably could do the financing in some form or fashion, but again like you we are dealing in public money and so we need to know what is the legal instrument that is going to get created that represents this transfer of money from us to you and how it is getting paid back. Ms. Rijo-Conde said that they were waiting for this confirmation from the Commission, and now that there is interest in going to the next level then the next step is to get their Treasurer and Finance people and the City's Finance people together. Commissioner Scholl said he thought all we were going to do was to provide debt,he has not come to grips to the fact that we are going to make another contribution based on the contribution we already made which was quite substantial to begin with. From his perspective, given the fact we deal with a lot of the other preconditions like the Mayor just mentioned, we would look to give you debt instrument for the total cost. As a Commission we will have to decide, now he understands that they are asking for us to forgive half the cost up front, and that is not where his head is at but it is something they will have to debate. 8 Summary Minutes:City Commission Workshop August 9,2011 City of Sunny Isles Beach,Florida Mayor Edelcup said he thinks we should look at it that we would provide the financing and that from time to time the Commission would always look at whether or not it wants to forgive some of that debt. A lot of it is going to depend on the economics of where we are at, but if it is a five-year, seven-year note payoff anywhere in that time period we can certainly be looking at either making annual small gifts to forgive it in part. Commissioner Scholl said contrary to popular belief, our pockets are not as deep as people think they are. We are in better shape than most cities but we are in better shape because we've approached our budget with all fiscal conservatism, we didn't bond up into future revenue we didn't have. Long before he was a Commissioner, he and the Mayor used to meet annually with the City Manager and dice up the budget and figure out how to deal with this from a prudent fiscal perspective, nonetheless we maintained our numbers but the decrease in assessment has effected us as well. Assistant City Manager/Finance Minal Shah said just like every other municipality or governmental agency our revenues are also declining which does make it more difficult to meet our debt covenant. So we too are nearing our debt capacity and so one of the questions she has is if we do come to an agreement with the School Board she is hoping that there is some language in there that is contingent upon the City being able to get the financing from a third party from banking, because we will be required to get waivers for our debt calculations. Jamie Torres said one thing that is different with the proposal for Sunny Isles Beach is that they spoke to their Treasurer and based on the amount we are talking about, she has already committed to begin repayment basically immediately. At this point it would show of their share to begin repayment immediately, and not wait the five to seven years. As far as revenue, he thinks that would help the City. Assistant City Manager Shah said if we had a commitment and the Interlocal Agreement executed, how much lead time does the City have to get the financing. Mayor Edelcup said if we can come up with the documents that it is going to take to make this thing happen,the repayment schedule,and that everything is predicated on the City being able to get the financing,and we fully expect to be able to get the financing, but it has to be part of the language, and for the purposes of these documents he wants to see the document he would assume for the moment that it is the full amount of the debt not half the debt but that the City would acknowledge annually looking at perhaps making a gift of forgiveness of some portion of that debt but in the event the City is unable to do it for economic reasons then the payoff period will definitely have to be for a longer period and we wouldn't expect you to pay it off in half the time if you are paying 100% of the debt. But likewise, if the economy improves hopefully the City is in the position to look at making that forgiveness. He would like the documents to reflect the opportunity of gift but the documents to reflect that it is really the full amount and a potential repayment of the full amount. Ms. Rijo-Conde said she would send that to their financial people. Commissioner Scholl said he doesn't think the length of the repayment is as important, it is what it is, but as the Mayor is saying, it would give us flexibility as well which is what is important. Mayor Edelcup said as much as we can he would like the legal instrument as close to being a form of debt as possible because it also gives us opportunities to be able to finance that deal by showing that there is that legal obligation there even if we are wrapping the City's credit on top of the School Board's credit 9 Summary Minutes:City Commission Workshop August 9,2011 City of Sunny Isles Beach.Florida and putting the City's credit there first but somebody who is going to align to us is going to look to the fact not just the other lending to the City of Sunny Isles Beach but the City of Sunny Isles Beach expects to pay this back from monies that are coming from the School Board. Commissioner Scholl said that you are going to have that with even'municipality and that is something you may want to get with Legal now and try to figure out because you know,Key Biscayne is going to want the same thing because they are all going to want as much flexibility as they can have with the instrument understanding that they are not going to get a piece of collateral but whatever teeth goes into that instrument the full faith and credit of the School Board is what is going to,and Ms. Rijo-Conde said she will check the Ground Lease, typically what they do is that they don't go beyond the footprint of the building and they will look for the Certificate of Anticipation and so there may be some other way to secure the contribution. They will look at all of those and the City's financial records. Mayor Edelcup thinks we can move faster than any other municipality and so he thinks their finance people will have to get with ours in able to create whatever it is that we are able to create because he thinks in concept the Commission is in favor of seeing this expansion,now it is how do we make it all happen and how do we tie the knot and make the documents all flow. Commissioner Scholl said the other thing that we would like to see just for the sake of our own underwriting is if you can give Assistant City Manager Shah some metrics on the School Board,your financial metrics, how much your free cash flow is going to service your debt, all of that that you would have to give for your bond, and Ms. Rijo-Conde said they have to give the same exact thing for the CRA. She said the reason why they are safe with this debt capacity issuance is because of class size, we had to our construction tremendously, and Commissioner Scholl said you had a $2 Billion Capital Budget the last time he looked, it was way up there and he remembers the numbers were huge. Ms. Rijo- Conde said it was well over$1 Billion however there is no new money coming in,when you look at the entire State we have over 15% of the State's population in students and we see less than 5%of qualified money and so there was a huge disparity between what we needed to do to comply with the mandate, and the actual dollars we got from the State. Commissioner Scholl said it is a terrible situation, we all have empathy for the position you are in, what you and the Superintendent is doing is very formidable, there is no doubt because it has been as tough of a situation that any of us will see in our lifetime as far as the School system is concerned. The Commission thanked the representatives of the School Board. 4. Adjournment. Mayor Edelcup adjourned the Workshop at 1:09 p.m. 10