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RES 2010-1301 - City council concerns Fire Department Audit � AHA,/vr +F tA 6 .Y0441.1.4`' Law Department LsatraV� Omaha/Douglas Civic Center c I ¢! ro 1819 Farnam Street,Suite 804 �, ry Omaha,Nebraska 68183-0804 O44'T FE9 OP (402)444-5115 zo w Telefax(402)444-5125 City of Omaha Paul D.Kratz Jim Suttle,Mayor City Attorney Honorable President and Members of the City Council, Transmitted herewith is a Resolution prepared at the request of the City Council of the City of Omaha. On October 28, 2010, the City of Omaha received a report from Mike Foley, Nebraska State Auditor. The Nebraska State Auditor performed an inquiry and evaluation of financial information pertaining to the Omaha Fire Department. The Auditor concluded that a full-scale audit could not be completed at this time due to the fact that payroll records were not in an auditable condition. As a result of his review, the Nebraska State Auditor recommended improvements to certain processes and procedures in the recordkeeping in the City of Omaha Fire Department. The State Auditor also recognized that the Administration had begun work to implement various recommendations of the Nebraska State Auditor. This Resolution makes clear that the City Council of the City of Omaha supports the findings of the Nebraska State Auditor and calls upon the Auditor and Administration to continue to work to implement all the recommendations submitted in the October 28, 2010, letter. Respectfully submitted, Bernard J. in den Bosch p:\law-city council documents\2010\10133d1m.doc r T y Council hereby authorizes and approves the Bond Purchase Agreement in substantially the form attached hereto and directs that it shall be executed by and on behalf of the City by the Mayor of the City, or if the Mayor is unavailable by the City Finance Director, with the official seal of the City impressed or imprinted thereon and attested by the City Clerk, subject to such changes, insertions and omissions and such filling-in of blanks therein as may be approved by the officers of the City executing the same pursuant to this Section. The execution and delivery of such Bond Purchase Agreement for and on behalf of the City Council by such officers is conclusive evidence of the approval of such officers of any such changes, insertions, omissions or filling-in of blanks. OVED AS T • rito CI A TORNEY Date P. 'V.• 042vq1 I. 17s► By Councilmember 7-- 0 Adopted.... . .Z..,,.. 010 City Clerk/X / Approv . 4830-1859-9431.1 ACTT Mayor BPA Resolution 819 Farnam Street, Omaha, Nebraska 68183, Facsimile Number (402)444-5125, Attention: Finance Director, and any notice or other communication to be given to the Underwriter under this Agreement may be given by delivering the same in writing to D.A. Davidson& Co., Suite 300, 1111 North 102nd Court, Omaha, Nebraska 68114, Attention: Daniel J. Smith. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 4846-4428-7751.1 9 or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. 4846-4428-7751.1 8 1.1 5 e. (b) The Underwriter represents and warrants to the City that the material in the Preliminary Official Statement under the caption "UNDERWRITING" is true and correct in all material respects and does not omit any information that is necessary to make the statements contained therein not misleading in any material respect. 6. At 10:00 a.m., Omaha time, on November _, 2010, or on such business day not later than December 31, 2010 as shall have been mutually agreed upon by the Finance Director of the City and the Underwriter(the"Closing Time"),the City will deliver to the Underwriter the 4846-4428-7751.1 4 equent state legislation. Bond Counsel has offered no opinion with respect to the state tax law treatment of interest on the Series 2010B Bonds. Purchasers of the Series 2010B Bonds should consult their own tax counsel as to the treatment of interest on the Series 2010B Bonds for purposes of determining state income tax consequences. 4826-9963-2135.1 21 nd transmit notices to Beneficial Owners. In the alternative,Beneficial Owners may wish to provide their names and addresses to the Paying Agent and request that copies of notices be provided directly to them. 4826-9963-2135.1 1 1 Investors must read the w° 1 g entire Official Statement to obtain information essential and material to the making of an informed investment decision. 5 b The Bonds are being offered when, as and if issued by the City and accepted by the Underwriter, subject to the approval of c•� 3 legality of the Bonds by Kutak Rock LLP, Bond Counsel, and to certain other conditions. It is expected that delivery of the Bonds will be c $ made on or about November 18,2010,at DTC in New York,New York against payment therefor. . g E 1• 2 70 c g. Dated:November_,2010 II; cn ) • > H Preliminary;subject to change H.4 3 4826-9963-2135.1 ,.....04.40 1,,,,1,.. ..`.. „\,...:1-:.it,,_:,,,,-7........_r,0 1.,: - lir t:11,?;:li.--- • ••_ , .• '.y :.- .. g ; �' Yrzr ..-"'� ; ( (�a�-t��r�r 521.93 Acres t:�x lath*bt 4 '-.4 a • ._ . . i • . •5.I. y , SPLI°• .c• ��� 1 4 tt 3:� ��� s`� Marinda Sl �r f';S i r ' �t ,�,I. u g` ,}j�••��1 I.•{' �• 1 ,.fPPP,r a�„ri},. i3�' ?,. 1_, ,_ + -i_ `J • 1 '�'q +„ � � •oss e. .�wllf:::AYX^ a .I / � tit :43%, ti T.C7 >6 ) 10„,,,,„,...1r . i, . . i. Cam.y �^ j• _-••'r+•..�,.�.'_"_ .. - ....i..,,,, . - _ 'R . M , is ix ,„,,, -,,,,, ii. `i`liamgi `�puoo f . • u �': '• i • M�' ..fat' i r (l, .• i r:;.;II . .1,..�, ! frd --?• i ;„;It-.1 T 4 01 'fib a 4 Per _� i '-: r- ri ;.....,;• .' ,It '[ 'lf.v ., it IP 'w • • 4 4 ., N r. . ' 'p ilkt , , ri1,885 Parcels t I , ; Fro ' 't 044.7179 Sq. MilesA " L,._ . • L � # '�} j ' i. : f # ; 1r °It' ;, ru 59.43Acres ir•:� fqkifp klt , • ;7 : ! �. • Is 4 •► MapC , • Qr ~ �rstr 0r IS • - i l,h ._,.. a • 1.. s = -. •i1'f_.0�. �jr •, . ,c 4A.Aan. e assisted by this activity. smaller and larger families. Page 3 of 4 form HUD-40095(02/2003) •i 4. MOTION BY COUNCILMEMBER I hereby move that Council Document No. 1.f()f , Current Series, be amended in the whole by deleting the existing Resolution and substituting in lieu thereof the attached Resolution: APPROVED AS TO FORM: j) zEly S4--CITY ATTORNEY A CD 0 rn CD o 0 o vo rt- Liquor License be granted. TFL, Inc., dba "Tobacco &Phones 4 Less", 333 South 72nd Street. That, the cost of publication of notice of the hearing was $26.00. November 9, 2010 Resolution No. 1299 - Motion to adopt. Carried 7-0. B 4--" ° y �1 r _ Councilmember NOV Adopted �`-'� r C. Clerk :- . _i �Z Approved{`..~. /4 / Mayor . ' Y Mayor C-25A CITY OF OMAHA ,• LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, on October 28, 2010, the City of Omaha received a report from Mike Foley at the Nebraska State Auditor's office; and, WHEREAS,the Nebraska State Auditor performed limited inquiries and evaluations of the financial information pertaining to the Omaha Fire Department; and, WHEREAS, the Nebraska State Auditor concluded that a full-scale audit would not be completed at this time due to the fact the payroll records are not in an"auditable condition"; and, WHEREAS, the Nebraska State Auditor recommends improvements to certain processes and procedures such as reconciling the Kloewer Fund with the City of Omaha's Finance Department on a monthly basis, accurately tracking leave time (including Union time) through the use of leave slips that are kept on file, accurately tracking trade time in each day book as well as filing trade time agreements,developing documentation to support employees working out of class and implementing a system to verify all time is adequately supported and paid according to the contract and that employees supervising should review the time worked has been accurately entered into the payroll system and that the system will give the City of Omaha more comfort they are only paying for actual time worked — especially in the Bureaus where time and pay is adequately documented and approved by another individual within the Department. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT,in reviewing this audit,the City Council is deeply concerned and disappointed in the serious lack of responsibility,accountability and transparency in the handling of public funds. Inept bookkeeping and misuse of public monies will not be tolerated and needs to be immediately • By Councilmember Adopted City Clerk Approved Mayor tor, with the official seal of the City impressed or imprinted thereon and attested by the City Clerk, subject to such changes, insertions and omissions and such filling-in of blanks therein as may be approved by the officers of the City executing the same pursuant to this Section. The execution and delivery of such Bond Purchase Agreement for and on behalf of the City Council by such officers is conclusive evidence of the approval of such officers of any such changes, insertions, omissions or filling-in of blanks. OVED AS T • rito CI A TORNEY Date P. 'V.• 042vq1 I. 17s► By Councilmember 7-- 0 Adopted.... . .Z..,,.. 010 City Clerk/X / Approv . 4830-1859-9431.1 ACTT Mayor BPA Resolution 819 Farnam Street, Omaha, Nebraska 68183, Facsimile Number (402)444-5125, Attention: Finance Director, and any notice or other communication to be given to the Underwriter under this Agreement may be given by delivering the same in writing to D.A. Davidson& Co., Suite 300, 1111 North 102nd Court, Omaha, Nebraska 68114, Attention: Daniel J. Smith. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 4846-4428-7751.1 9 or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. 4846-4428-7751.1 8 1.1 5 e. (b) The Underwriter represents and warrants to the City that the material in the Preliminary Official Statement under the caption "UNDERWRITING" is true and correct in all material respects and does not omit any information that is necessary to make the statements contained therein not misleading in any material respect. 6. At 10:00 a.m., Omaha time, on November _, 2010, or on such business day not later than December 31, 2010 as shall have been mutually agreed upon by the Finance Director of the City and the Underwriter(the"Closing Time"),the City will deliver to the Underwriter the 4846-4428-7751.1 4 equent state legislation. Bond Counsel has offered no opinion with respect to the state tax law treatment of interest on the Series 2010B Bonds. Purchasers of the Series 2010B Bonds should consult their own tax counsel as to the treatment of interest on the Series 2010B Bonds for purposes of determining state income tax consequences. 4826-9963-2135.1 21 nd transmit notices to Beneficial Owners. In the alternative,Beneficial Owners may wish to provide their names and addresses to the Paying Agent and request that copies of notices be provided directly to them. 4826-9963-2135.1 1 1 Investors must read the w° 1 g entire Official Statement to obtain information essential and material to the making of an informed investment decision. 5 b The Bonds are being offered when, as and if issued by the City and accepted by the Underwriter, subject to the approval of c•� 3 legality of the Bonds by Kutak Rock LLP, Bond Counsel, and to certain other conditions. It is expected that delivery of the Bonds will be c $ made on or about November 18,2010,at DTC in New York,New York against payment therefor. . g E 1• 2 70 c g. Dated:November_,2010 II; cn ) • > H Preliminary;subject to change H.4 3 4826-9963-2135.1 ,.....04.40 1,,,,1,.. ..`.. „\,...:1-:.it,,_:,,,,-7........_r,0 1.,: - lir t:11,?;:li.--- • ••_ , .• '.y :.- .. g ; �' Yrzr ..-"'� ; ( (�a�-t��r�r 521.93 Acres t:�x lath*bt 4 '-.4 a • ._ . . i • . •5.I. y , SPLI°• .c• ��� 1 4 tt 3:� ��� s`� Marinda Sl �r f';S i r ' �t ,�,I. u g` ,}j�••��1 I.•{' �• 1 ,.fPPP,r a�„ri},. i3�' ?,. 1_, ,_ + -i_ `J • 1 '�'q +„ � � •oss e. .�wllf:::AYX^ a .I / � tit :43%, ti T.C7 >6 ) 10„,,,,„,...1r . i, . . i. Cam.y �^ j• _-••'r+•..�,.�.'_"_ .. - ....i..,,,, . - _ 'R . M , is ix ,„,,, -,,,,, ii. `i`liamgi `�puoo f . • u �': '• i • M�' ..fat' i r (l, .• i r:;.;II . .1,..�, ! frd --?• i ;„;It-.1 T 4 01 'fib a 4 Per _� i '-: r- ri ;.....,;• .' ,It '[ 'lf.v ., it IP 'w • • 4 4 ., N r. . ' 'p ilkt , , ri1,885 Parcels t I , ; Fro ' 't 044.7179 Sq. MilesA " L,._ . • L � # '�} j ' i. : f # ; 1r °It' ;, ru 59.43Acres ir•:� fqkifp klt , • ;7 : ! �. • Is 4 •► MapC , • Qr ~ �rstr 0r IS • - i l,h ._,.. a • 1.. s = -. •i1'f_.0�. �jr •, . ,c 4A.Aan. e assisted by this activity. smaller and larger families. Page 3 of 4 form HUD-40095(02/2003) C-25A • CITY OF OMAHA LEGISLATIVE CHAMBER •• Omaha,Nebraska PAGE 2 addressed. Additionally,the lack of cooperation by City employees with the audit officials from the State of Nebraska is unacceptable. FURTHER, THAT,the Omaha City Council supports the Nebraska State Auditor's findings and calls upon the Administration to immediately comply and implement all of the recommendations submitted on October 28, 2010, and the Administration shall provide monthly written and verbal reports to the City Council on the implementation progress and a follow-up audit by the Nebraska State Auditor within a year. APPROVED AS TO FORM: • Asst:. CITY ATTORNEY DATE P\LAW-CITY COUNCIL DOCUMENTS\2010\30136d1m By Councilmember Adopted City Clerk Approved Mayor • / Mayor . ' Y Mayor 4 1 o • CD CD j�.1 �, Q. ka, 5 .T1 00 0) 0 4 ' mr, \ A 0 1. ; Per CP Ci F o n td c0 0 a CD cn CI. cr to d on October 28, 2010, and the Administration shall provide monthly written and verbal reports to the City Council on the implementation progress and a follow-up audit by the Nebraska State Auditor within a year. APPROVED AS TO FORM: • Asst:. CITY ATTORNEY DATE P\LAW-CITY COUNCIL DOCUMENTS\2010\30136d1m By Councilmember Adopted City Clerk Approved Mayor • / Mayor . ' Y Mayor C-25A Aannk d 0� V . I�0/ CITY OF OMAHA i/-Z-ifiggyp, LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, on October 28, 2010, the City of Omaha received a report from Mike Foley at the Nebraska State Auditor's office; and, WHEREAS,the Nebraska State Auditor performed limited inquiries and evaluations of the financial information pertaining to the Omaha Fire Department; and, WHEREAS,the Nebraska State Auditor concluded that a full-scale audit would not be completed at this time due to the fact the payroll records are not in an"auditable condition";and, WHEREAS, the Nebraska State Auditor recommends improvements to certain processes and procedures such as reconciling the Kloewer Fund with the City of Omaha's Finance Department on a monthly basis, accurately tracking leave time(including Union time)through the use of leave slips that are kept on file, accurately tracking trade time in each day book as well as filing trade time agreements,developing documentation to support employees working out of class and implementing a system to verify all time is adequately supported and paid according to the contract and that employees supervising should review the time worked has been accurately entered into the payroll system and that the system will give the City of Omaha more comfort they are only paying for actual time worked — especially in the Bureaus where time and pay is adequately documented and approved by another individual within the Department. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT,in reviewing this audit,the City Council is deeply concerned and disappointed in the serious lack of responsibility,accountability and transparency in the handling of public funds. Inept bookkeeping and misuse of public monies will not be tolerated and needs to be immediately By Councilmember Adopted City Clerk Approved Mayor imprinted thereon and attested by the City Clerk, subject to such changes, insertions and omissions and such filling-in of blanks therein as may be approved by the officers of the City executing the same pursuant to this Section. The execution and delivery of such Bond Purchase Agreement for and on behalf of the City Council by such officers is conclusive evidence of the approval of such officers of any such changes, insertions, omissions or filling-in of blanks. OVED AS T • rito CI A TORNEY Date P. 'V.• 042vq1 I. 17s► By Councilmember 7-- 0 Adopted.... . .Z..,,.. 010 City Clerk/X / Approv . 4830-1859-9431.1 ACTT Mayor BPA Resolution 819 Farnam Street, Omaha, Nebraska 68183, Facsimile Number (402)444-5125, Attention: Finance Director, and any notice or other communication to be given to the Underwriter under this Agreement may be given by delivering the same in writing to D.A. Davidson& Co., Suite 300, 1111 North 102nd Court, Omaha, Nebraska 68114, Attention: Daniel J. Smith. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 4846-4428-7751.1 9 or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. 4846-4428-7751.1 8 1.1 5 e. (b) The Underwriter represents and warrants to the City that the material in the Preliminary Official Statement under the caption "UNDERWRITING" is true and correct in all material respects and does not omit any information that is necessary to make the statements contained therein not misleading in any material respect. 6. At 10:00 a.m., Omaha time, on November _, 2010, or on such business day not later than December 31, 2010 as shall have been mutually agreed upon by the Finance Director of the City and the Underwriter(the"Closing Time"),the City will deliver to the Underwriter the 4846-4428-7751.1 4 equent state legislation. Bond Counsel has offered no opinion with respect to the state tax law treatment of interest on the Series 2010B Bonds. Purchasers of the Series 2010B Bonds should consult their own tax counsel as to the treatment of interest on the Series 2010B Bonds for purposes of determining state income tax consequences. 4826-9963-2135.1 21 nd transmit notices to Beneficial Owners. In the alternative,Beneficial Owners may wish to provide their names and addresses to the Paying Agent and request that copies of notices be provided directly to them. 4826-9963-2135.1 1 1 Investors must read the w° 1 g entire Official Statement to obtain information essential and material to the making of an informed investment decision. 5 b The Bonds are being offered when, as and if issued by the City and accepted by the Underwriter, subject to the approval of c•� 3 legality of the Bonds by Kutak Rock LLP, Bond Counsel, and to certain other conditions. It is expected that delivery of the Bonds will be c $ made on or about November 18,2010,at DTC in New York,New York against payment therefor. . g E 1• 2 70 c g. Dated:November_,2010 II; cn ) • > H Preliminary;subject to change H.4 3 4826-9963-2135.1 ,.....04.40 1,,,,1,.. ..`.. „\,...:1-:.it,,_:,,,,-7........_r,0 1.,: - lir t:11,?;:li.--- • ••_ , .• '.y :.- .. g ; �' Yrzr ..-"'� ; ( (�a�-t��r�r 521.93 Acres t:�x lath*bt 4 '-.4 a • ._ . . i • . •5.I. y , SPLI°• .c• ��� 1 4 tt 3:� ��� s`� Marinda Sl �r f';S i r ' �t ,�,I. u g` ,}j�••��1 I.•{' �• 1 ,.fPPP,r a�„ri},. i3�' ?,. 1_, ,_ + -i_ `J • 1 '�'q +„ � � •oss e. .�wllf:::AYX^ a .I / � tit :43%, ti T.C7 >6 ) 10„,,,,„,...1r . i, . . i. Cam.y �^ j• _-••'r+•..�,.�.'_"_ .. - ....i..,,,, . - _ 'R . M , is ix ,„,,, -,,,,, ii. `i`liamgi `�puoo f . • u �': '• i • M�' ..fat' i r (l, .• i r:;.;II . .1,..�, ! frd --?• i ;„;It-.1 T 4 01 'fib a 4 Per _� i '-: r- ri ;.....,;• .' ,It '[ 'lf.v ., it IP 'w • • 4 4 ., N r. . ' 'p ilkt , , ri1,885 Parcels t I , ; Fro ' 't 044.7179 Sq. MilesA " L,._ . • L � # '�} j ' i. : f # ; 1r °It' ;, ru 59.43Acres ir•:� fqkifp klt , • ;7 : ! �. • Is 4 •► MapC , • Qr ~ �rstr 0r IS • - i l,h ._,.. a • 1.. s = -. •i1'f_.0�. �jr •, . ,c 4A.Aan. e assisted by this activity. smaller and larger families. Page 3 of 4 form HUD-40095(02/2003) C-25A CITY OF OMAHA LEGISLATIVE CHAMBER i Omaha,Nebraska PAGE 2 addressed. Additionally,the lack of cooperation by City employees with the audit officials from the State of Nebraska is unacceptable. FURTHER, THAT,the Omaha City Council supports the Nebraska State Auditor's findings and calls upon the Administration to immediately comply and implement all of the recommendations submitted on October 28, 2010, and the Administration shall provide monthly written and verbal reports to the City Council on the implementation progress and a follow-up audit by the Nebraska State Auditor within a year. .APPROVED AS TO FORM: c---7..a.S2 ..• �.,, // 2 /O ,s$4. CITY ATTORNEY DATE P\LAW-CITY COUNCIL DOCUMENTS\2010\30136dIm BY....eleVC110441 g. 81A".1?"- Councilmember Adopted NOV - 2010 Q g /1G 7�-0 City Clerk ` 7 0 Approved. .. .... ACTIN ayor agreements,developing documentation to support employees working out of class and implementing a system to verify all time is adequately supported and paid according to the contract and that employees supervising should review the time worked has been accurately entered into the payroll system and that the system will give the City of Omaha more comfort they are only paying for actual time worked — especially in the Bureaus where time and pay is adequately documented and approved by another individual within the Department. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT,in reviewing this audit,the City Council is deeply concerned and disappointed in the serious lack of responsibility,accountability and transparency in the handling of public funds. Inept bookkeeping and misuse of public monies will not be tolerated and needs to be immediately By Councilmember Adopted City Clerk Approved Mayor imprinted thereon and attested by the City Clerk, subject to such changes, insertions and omissions and such filling-in of blanks therein as may be approved by the officers of the City executing the same pursuant to this Section. The execution and delivery of such Bond Purchase Agreement for and on behalf of the City Council by such officers is conclusive evidence of the approval of such officers of any such changes, insertions, omissions or filling-in of blanks. OVED AS T • rito CI A TORNEY Date P. 'V.• 042vq1 I. 17s► By Councilmember 7-- 0 Adopted.... . .Z..,,.. 010 City Clerk/X / Approv . 4830-1859-9431.1 ACTT Mayor BPA Resolution 819 Farnam Street, Omaha, Nebraska 68183, Facsimile Number (402)444-5125, Attention: Finance Director, and any notice or other communication to be given to the Underwriter under this Agreement may be given by delivering the same in writing to D.A. Davidson& Co., Suite 300, 1111 North 102nd Court, Omaha, Nebraska 68114, Attention: Daniel J. Smith. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 4846-4428-7751.1 9 or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. 4846-4428-7751.1 8 1.1 5 e. (b) The Underwriter represents and warrants to the City that the material in the Preliminary Official Statement under the caption "UNDERWRITING" is true and correct in all material respects and does not omit any information that is necessary to make the statements contained therein not misleading in any material respect. 6. At 10:00 a.m., Omaha time, on November _, 2010, or on such business day not later than December 31, 2010 as shall have been mutually agreed upon by the Finance Director of the City and the Underwriter(the"Closing Time"),the City will deliver to the Underwriter the 4846-4428-7751.1 4 equent state legislation. Bond Counsel has offered no opinion with respect to the state tax law treatment of interest on the Series 2010B Bonds. Purchasers of the Series 2010B Bonds should consult their own tax counsel as to the treatment of interest on the Series 2010B Bonds for purposes of determining state income tax consequences. 4826-9963-2135.1 21 nd transmit notices to Beneficial Owners. In the alternative,Beneficial Owners may wish to provide their names and addresses to the Paying Agent and request that copies of notices be provided directly to them. 4826-9963-2135.1 1 1 Investors must read the w° 1 g entire Official Statement to obtain information essential and material to the making of an informed investment decision. 5 b The Bonds are being offered when, as and if issued by the City and accepted by the Underwriter, subject to the approval of c•� 3 legality of the Bonds by Kutak Rock LLP, Bond Counsel, and to certain other conditions. It is expected that delivery of the Bonds will be c $ made on or about November 18,2010,at DTC in New York,New York against payment therefor. . g E 1• 2 70 c g. Dated:November_,2010 II; cn ) • > H Preliminary;subject to change H.4 3 4826-9963-2135.1 ,.....04.40 1,,,,1,.. ..`.. „\,...:1-:.it,,_:,,,,-7........_r,0 1.,: - lir t:11,?;:li.--- • ••_ , .• '.y :.- .. g ; �' Yrzr ..-"'� ; ( (�a�-t��r�r 521.93 Acres t:�x lath*bt 4 '-.4 a • ._ . . i • . •5.I. y , SPLI°• .c• ��� 1 4 tt 3:� ��� s`� Marinda Sl �r f';S i r ' �t ,�,I. u g` ,}j�••��1 I.•{' �• 1 ,.fPPP,r a�„ri},. i3�' ?,. 1_, ,_ + -i_ `J • 1 '�'q +„ � � •oss e. .�wllf:::AYX^ a .I / � tit :43%, ti T.C7 >6 ) 10„,,,,„,...1r . i, . . i. Cam.y �^ j• _-••'r+•..�,.�.'_"_ .. - ....i..,,,, . - _ 'R . M , is ix ,„,,, -,,,,, ii. `i`liamgi `�puoo f . • u �': '• i • M�' ..fat' i r (l, .• i r:;.;II . .1,..�, ! frd --?• i ;„;It-.1 T 4 01 'fib a 4 Per _� i '-: r- ri ;.....,;• .' ,It '[ 'lf.v ., it IP 'w • • 4 4 ., N r. . ' 'p ilkt , , ri1,885 Parcels t I , ; Fro ' 't 044.7179 Sq. MilesA " L,._ . • L � # '�} j ' i. : f # ; 1r °It' ;, ru 59.43Acres ir•:� fqkifp klt , • ;7 : ! �. • Is 4 •► MapC , • Qr ~ �rstr 0r IS • - i l,h ._,.. a • 1.. s = -. •i1'f_.0�. �jr •, . ,c 4A.Aan. e assisted by this activity. smaller and larger families. Page 3 of 4 form HUD-40095(02/2003) c„ e ° 2 o1C--Dh 2B• - 5 °- g ,,. a cD — p.) .T.P.• \. —Q1.11 ,k. - n Z "-1 = �' ai, " O . Uj C p+ C9 N fv O 'tS cD O cu z p, O O r fv CD �� �-• .- .� O C' cp ' \i (1h\ 4. ,,(�O z , P (-) .-• tN.) 0 ,.... '"1 ,--• Na <• D ,t 1.- fy aW 0.11 v 0 ... 1 CD r N a , C 0 (D OG. � 9 A) C \ L E. 'oh n p O O CA ° Mp O O h�' O G r+ Q * CD' "' al., A, m-'L7 v, < Qcn fv �G Iv u, pa p) 1b CDn y C p Cep CD N cn CD CD v' CD•CM Cl. C.: .. \ , - ..i • + 1 k .... ACTIN ayor agreements,developing documentation to support employees working out of class and implementing a system to verify all time is adequately supported and paid according to the contract and that employees supervising should review the time worked has been accurately entered into the payroll system and that the system will give the City of Omaha more comfort they are only paying for actual time worked — especially in the Bureaus where time and pay is adequately documented and approved by another individual within the Department. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT,in reviewing this audit,the City Council is deeply concerned and disappointed in the serious lack of responsibility,accountability and transparency in the handling of public funds. Inept bookkeeping and misuse of public monies will not be tolerated and needs to be immediately By Councilmember Adopted City Clerk Approved Mayor imprinted thereon and attested by the City Clerk, subject to such changes, insertions and omissions and such filling-in of blanks therein as may be approved by the officers of the City executing the same pursuant to this Section. The execution and delivery of such Bond Purchase Agreement for and on behalf of the City Council by such officers is conclusive evidence of the approval of such officers of any such changes, insertions, omissions or filling-in of blanks. OVED AS T • rito CI A TORNEY Date P. 'V.• 042vq1 I. 17s► By Councilmember 7-- 0 Adopted.... . .Z..,,.. 010 City Clerk/X / Approv . 4830-1859-9431.1 ACTT Mayor BPA Resolution 819 Farnam Street, Omaha, Nebraska 68183, Facsimile Number (402)444-5125, Attention: Finance Director, and any notice or other communication to be given to the Underwriter under this Agreement may be given by delivering the same in writing to D.A. Davidson& Co., Suite 300, 1111 North 102nd Court, Omaha, Nebraska 68114, Attention: Daniel J. Smith. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 4846-4428-7751.1 9 or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. 4846-4428-7751.1 8 1.1 5 e. (b) The Underwriter represents and warrants to the City that the material in the Preliminary Official Statement under the caption "UNDERWRITING" is true and correct in all material respects and does not omit any information that is necessary to make the statements contained therein not misleading in any material respect. 6. At 10:00 a.m., Omaha time, on November _, 2010, or on such business day not later than December 31, 2010 as shall have been mutually agreed upon by the Finance Director of the City and the Underwriter(the"Closing Time"),the City will deliver to the Underwriter the 4846-4428-7751.1 4 equent state legislation. Bond Counsel has offered no opinion with respect to the state tax law treatment of interest on the Series 2010B Bonds. Purchasers of the Series 2010B Bonds should consult their own tax counsel as to the treatment of interest on the Series 2010B Bonds for purposes of determining state income tax consequences. 4826-9963-2135.1 21 nd transmit notices to Beneficial Owners. In the alternative,Beneficial Owners may wish to provide their names and addresses to the Paying Agent and request that copies of notices be provided directly to them. 4826-9963-2135.1 1 1 Investors must read the w° 1 g entire Official Statement to obtain information essential and material to the making of an informed investment decision. 5 b The Bonds are being offered when, as and if issued by the City and accepted by the Underwriter, subject to the approval of c•� 3 legality of the Bonds by Kutak Rock LLP, Bond Counsel, and to certain other conditions. It is expected that delivery of the Bonds will be c $ made on or about November 18,2010,at DTC in New York,New York against payment therefor. . g E 1• 2 70 c g. Dated:November_,2010 II; cn ) • > H Preliminary;subject to change H.4 3 4826-9963-2135.1 ,.....04.40 1,,,,1,.. ..`.. „\,...:1-:.it,,_:,,,,-7........_r,0 1.,: - lir t:11,?;:li.--- • ••_ , .• '.y :.- .. g ; �' Yrzr ..-"'� ; ( (�a�-t��r�r 521.93 Acres t:�x lath*bt 4 '-.4 a • ._ . . i • . •5.I. y , SPLI°• .c• ��� 1 4 tt 3:� ��� s`� Marinda Sl �r f';S i r ' �t ,�,I. u g` ,}j�••��1 I.•{' �• 1 ,.fPPP,r a�„ri},. i3�' ?,. 1_, ,_ + -i_ `J • 1 '�'q +„ � � •oss e. .�wllf:::AYX^ a .I / � tit :43%, ti T.C7 >6 ) 10„,,,,„,...1r . i, . . i. Cam.y �^ j• _-••'r+•..�,.�.'_"_ .. - ....i..,,,, . - _ 'R . M , is ix ,„,,, -,,,,, ii. `i`liamgi `�puoo f . • u �': '• i • M�' ..fat' i r (l, .• i r:;.;II . .1,..�, ! frd --?• i ;„;It-.1 T 4 01 'fib a 4 Per _� i '-: r- ri ;.....,;• .' ,It '[ 'lf.v ., it IP 'w • • 4 4 ., N r. . ' 'p ilkt , , ri1,885 Parcels t I , ; Fro ' 't 044.7179 Sq. MilesA " L,._ . • L � # '�} j ' i. : f # ; 1r °It' ;, ru 59.43Acres ir•:� fqkifp klt , • ;7 : ! �. • Is 4 •► MapC , • Qr ~ �rstr 0r IS • - i l,h ._,.. a • 1.. s = -. •i1'f_.0�. �jr •, . ,c 4A.Aan. e assisted by this activity. smaller and larger families. Page 3 of 4 form HUD-40095(02/2003) News Conference Remarks "Mismanagement of the City of Omaha Fire and Rescue Department" Wednesday February 10th, 2010 Omaha Press Club • Presented by David Nabity, Treasurer Thank you all for being here today. As you know, the Omaha Alliance for the Private Sector has been working hard to analyze the fire and police union contracts. We recently reported some of the findings from our research that related to firefighter contracts and pensions. Today, we want to share additional concerns with the public about the way the City of Omaha Fire and Rescue Department is managed by its current leaders. As we mentioned previously, current department leaders are the same people who pushed for excessive pension benefits and contract excesses that are now bankrupting the city. When they were officers of the union, they put heavy pressure on our elected officials unfortunately for the taxpayers of Omaha, to approve a contract that was obviously not in the city's best interests. Since then, these individuals maneuvered themselves into leadership positions within the Fire Department. While in these positions, they have managed to lead the department to a deficit of $4.7 million dollars. Over the last three months, the Omaha Alliance has worked to secure as much information as we can about the Fire Department to determine what has really been going on to push the department so over budget. To accomplish this, we visited with numerous current and retired firefighters and civilians. Today, we will provide to the public a great deal of disturbing information that has come from this research. We know that the information we are releasing today will raise more questions and require further research and investigation. The Omaha Alliance for the Private Sector will continue to do just that. It is our hope that by exposing what we have already discovered will help the our city officials better understand why it is important to start over on the negotiation process for a new fire union contract, and that the public will be as outraged as we are at the mismanagement and waste in our fire department that is costing taxpayers millions of dollars and threatening the morale and perhaps the safety of citizens and firefighters themselves. Before we begin to share what we have gathered, we want to make it clear that some of this • information may requires further investigation from legal authorities of the city and even the State Auditor of the State of Nebraska. I want to be concise and to the point, so I will list each concern with a minimum of background. You can ask questions at the end of my our presentation, or call me to get more information. Now, allow me to turn to the Omaha Alliance's concerns regarding mismanagement of Fire Department operations. STAFFING DECISIONS: 1) The executive office of the department is severely over staffed costing taxpayers hundreds of thousands annually. The Fire Department is only supposed to have three assistant chiefs, and there are currently six. The department created special positions, titled"Operational Chiefs," for select members of the department without any apparent true need for those positions. These positions were created by the current administration. They did not exist in any annual budget of previous administrations. These positions have never been budgeted or approved by the unit of government required to do so, the City Council. 2) A year ago, 18 firefighters were hired to staff a new Elkhorn suburban firehouse that has not even been built. Ground hasn't been broken on this new facility yet, Fire Department management, during this difficult budget time, added 18 new positions with no facility to house them. This action is a direct cost to the city of$1,350,000 assuming that these new firefighters plus benefits cost the city$75,000 annually. 3) Since the current management team has been in charge, staffing has significantly increased to where 60 to 120 firefighters a day are being paid to stay home. And, the city is also paying overtime for 15-30 people a day while 29 are on"Detached Duty" and there whereabouts are difficult to indentify. This again shows that management is manipulating the payroll systems and employment of the fire department masking that the department is significantly over staffed. This mismanagement alone could account for $6,000,000 in unnecessary costs. nt and waste in our fire department that is costing taxpayers millions of dollars and threatening the morale and perhaps the safety of citizens and firefighters themselves. 4) Specific individual firefighters are receiving "out of class"pay above what they are entitled to in the Omaha Fire Union contract costing taxpayers countless dollars. These individuals were not receiving this inflated pay under the management practices of the previous administration. Actual unnecessary cost to the city cannot be determined without specific records of who today is getting out of class pay and compare those to the number under previous Fire Department administrations. The Union Secretary admitted he was getting this "out of class"pay at the December 2009 meeting to the dismay of many in attendance at that meeting. 5) The department allows a system that fosters poor accountability of a select group of firefighters' and their whereabouts at any given time, which causes confusion, overstaffing and bloated payroll costs. a. A "detached duty status"used by the management team takes firefighters off the recording books does not allow supervisors or the payroll department to keep track of the employees, which positions them to be out of the realm of accountability. It moves the firefighter off of a truck and onto a 40 hour work week somewhere in the Fire Bureau. b. When this occurs, it proves that you have more firefighters than you need to properly staff the department and it misuses the payroll of the city. Also, these individuals assigned to a"detached duty status" are receiving pay that does not exist in the union contract. During the month of January, emails were sent from Central Headquarters offering discretionary leave, due to excessive manning which allowed firefighters to burn "comp time" and"annual leave"time. During the previous Dahlquist administration, there was virtually no "detached duty" activity. 6) Various Fire Department employees are allowed to go on training trips while still being paid as if working. Recent example of Scott Alffs who was in Belize doing "scuba training" was not marked out as on Vacation. It wasn't until the training trip was exposed and that paperwork covering his whereabouts was submitted later. t for $6,000,000 in unnecessary costs. nt and waste in our fire department that is costing taxpayers millions of dollars and threatening the morale and perhaps the safety of citizens and firefighters themselves. 7) Recently,many lower-waged civilian staff members were fired and replaced by uniformed firefighters who are paid double the wages costing taxpayers hundreds of thousands of dollars. These firefighters are not trained as secretaries or administrative assistants, and yet these high-salaried personnel are being forced into those jobs. This is a good example of mismanaging the department. Why would you put the highest paid individuals you have into positions that warrant lower wages, at the same time losing the institutional intelligence of veteran civilian employees? This move is costing the city hundreds of thousands of dollars. The method of terminating these employees is also disturbing. Management"offered these employees up" for budget reductions to the City Council. Once the Council approved these staffing budget cuts, along with other cuts, Fire Management placed the blame on the Council and then filed a lawsuit saying the Council is forcing Firefighters to do civilian staffing activities. This is an example of how current Fire Management is setting the City up to fail by recommending action and once taken, sues the City for taking it. It makes for an impossible situation for the City to fiscally manage the department. 8) Today,there is one captain for every three firefighters, and those assigned to positions above the rank-and-file firefighter represent 40% of the department costing taxpayers hundreds of thousands of dollars. This organizational structure makes the department grossly top heavy, and is a key reason the department is over budget. This is far removed from the typical model of managing a public safety department. A recent CIR decision identified this as no appropriate and stated it was a management decision of the city. Yet, nine months later, the Mayors office has not moved to correct this gross mismanagement. • ENDORSMENT OF EXCESSIVE UNION ACTIVITY 9) The current Omaha Fire Union president allegedly does not show up for work and is receiving full compensation. This City employee is assigned to a fire truck and the Fire Department Bureau,but as far as we have been able to determine,he is not often seen except at political events. Many believe he is spending all of his time on Omaha Fire Union activities, and is doing no fire department work. Yet,he continues to be paid full wages and receive full benefits from the city. If this is true, the Chief is disregarding the CIR's ruling that allows only 1200 union hours. If he is doing union work, it should be documented as such, but Fire Management is apparently saving those hours for"other"union activities. It also shows he is making no attempt to run a financially efficient department. While in this position as union President, he has orchestrated numerous lawsuits against the city to try and extract more funds from the City. POSSIBLE LAW VIOLATIONS 10)The department applied for and was awarded a federal grant based on staffing requirements that weren't met, yet the city took monies from the grant reserve in violation of the federal laws governing that grant. We are referring to the Federal (SAFER) Grant totaling $1,950,000 over five years. It was designated to pay for 18 new firefighters. The grant specifically required staffing of the Omaha Fire Department to reach 684 in order to receive grant funds. The department never reached 684 employees, yet the city took$200,000 from the grant reserve. So the question we need to ask is this: Does this situation put the city in a position of misleading Federal Authorities? And could it put the entire city in a position of losing all other grants in the future? Even though these firefighters salaries are completely covered by the SAFER grant, the city is continuing to collect from the Elkhorn Suburban Rural Fire District for these new hires. 11)The department has used a special fund called the Kloewer Memorial fund, a fund developed to cover training expenses for firefighters to cover the costs of special trips., special dinners, non-training competitions and equipment purchases. Accounting records on fund activities are inconsistent. The following is what OAPS has assembled regarding this fund: a. We believe the City has been overcharged by$59,000 for equipment purchased from Zoll Medical Corporation. The total bill for these Heart Monitors is $423,117. The department raised $299,000 from donors for this equipment leaving a balance due of$124,117 and yet the city is being billed $183,117 in four annual installments to pay the balance due. The question needs to be asked where is the additional $59,000? The City has already paid two payments totaling $91,558.50. By omitting that they had raised far more than stated to City and City Council thereby causing the city to pay$59,000 more for the equipment than needed, they have mislead the donors, the City and the City Council. These potentially deceptive actions are "theft by deception" and if proven true are grounds for severe discipline and dismissal. b. The department has billed local businesses for rental of City property yet once collected, those funds have gone into the Kloewer Fund, when they should have gone into the General Fund for the City of Omaha. c. Checks for slightly under$10,000 have been filed away rather being deposited in this or any account. d. There has been $32,725 donated to the fund for a new Water Rescue project that was not approved and subsequently rejected by the City Council and $7,305 was spent for specialized training for Water Rescue before the program was approved by the City. Greg Adams was the recipient of these funds. e. A total of$13,344.98 was spent on non-training related activities such as the Firefighters Ball and the On Target Challenge competitions between various Fire Departments. These Union sponsored activities should not be paid for out of City funds. f. The Kloewer fund appears to be controlled by the fire chief, at his sole discretion with little to no oversight from the city. Oversight must be brought under strict City oversight now. 12)It appears that funds allocated for a fire suppression system within fire department headquarters were redirected to build an office for the fire chief which created an unbudgeted expense of over$400,000. To start with, the headquarters remodeling project was $170,000 over budget. When the current Chief diverted funds to build his executive offices, it did not leave enough funds to install the fire sprinkler system. Recently, the State Fire Marshal has mandated that a sprinkler system be installed at an additional cost of$250,000 to the taxpayers. Those two mistakes total $420,000 to fix. We all need to ask, why would the FD, after performing over 5,400 inspections on other properties throughout the city—making sure sprinkler systems were property installed in those locations—think it would not have to have a sprinkler system in its own city facilities, which houses officers sleeping arrangements? MISUSE OF CONTRACT AND CIR RULINGS 13)Over the past three years, the Fire Department management has continued to "call back" firefighters at a cost of$1.2 million in unnecessary wages. Fire Department management has brought back firefighters at time-and-a-half pay, even though the current contract states that once the department reaches 657 firefighters, callback is not required. This has cost the City$1.2 million in unnecessary wages, not to Council. These potentially deceptive actions are "theft by deception" and if proven true are grounds for severe discipline and dismissal. b. The department has billed local businesses for rental of City property yet once collected, those funds have gone into the Kloewer Fund, when they should have gone into the General Fund for the City of Omaha. mention benefits, and appears to be a clear violation of the current contract. (See page 145 of CBA) These actions can appear to be deceptive as well and could be considered "theft by deception" and if proven true be grounds for severe discipline and dismissal. 14)Lax rules and mis-accounting of the "comp time" system has resulted in many receiving unnecessary time-and-a-half pay and allowing some firefighters to increase their pensions more than 30%. It is common knowledge within the depaitiuent that the leadership team of the department has instructed firefighters on how to manipulate holiday and vacation time until their last year so their wages "spike"by 540 hours to boost their pension income. The total liability of these actions could reach more than $11 million annually after accounting for the pension liability associated with the excessive pay. This deceptive use of the contract to accumulate additional "comp"hours is another example of mismanagement and warrant severe discipline and dismissal. 15)There are now 45 captains on ambulances—even though the Commission for Industrial Relations (CIR) recently stated clearly that these captains are not needed on the ambulances—costing Omaha taxpayers up to $1 million annually. Fire Department management has unnecessarily kept captains on Fire Department medical units and continued to pay the higher wages of these captains, totaling almost $600,000 annually. By doing this, Fire Department management is willfully disregarding the CIR's ruling (See page 8, Final Order), and shows they are making little attempt to run a financially efficient department. This is another example of ignoring the authority of the CIR and ignoring the stewardship responsibility that department heads should have toward the citizens of Omaha. 16)The City of Omaha during the Fahey Administration unfortunately agreed to become a fund raising apparatus for the Fire Union,by collecting through payroll deduction (checkoff)monthly donations to the International Association of Fire Fighters. Such deductions were never approved in the Fire Union Contract and places the city in the position of raising political funds through an employees salary deductions. No other employee group in the City of Omaha has this arrangement. These funds are sent to the national organization to be returned back to Omaha to be used to fund candidate campaigns and provide a huge source of funds to finance union lawsuits against the City. It also provides the funds to finance specific candidates that will carry the union agenda. Such donations from a national organization funneled back to local elected officials, does not show up as donations from the local fire union. Transparency is lost. I think you can see why these issues and the others we have referred to previously have created an overall distrust of recent operations in the City of Omaha Fire and Rescue Department. In addition to the financial costs of these questionable activities, the toll taken on the average firefighter has been horrendous. Our firefighters have been subjected to public ridicule, and have been forced to watch their leaders destroy public trust in them. Furthermore, we believe many firemen who are determined to play by the rules have been overlooked, resulting in a significant decline in morale, department-wide. Because of these findings,the Omaha Alliance for the Private Sector—on behalf of the taxpayers of Omaha—calls on City leaders to launch an independent financial audit of fire department operations by inviting the Nebraska State Auditor to review all activity within the Fire Department. In addition,we call on City Leaders to ask for a legal investigation with the City Attorney and the U.S.Attorney to study all of the activity within the department that may be in violation of city, state and federal laws. Finally,we ask the citizens to engage in this process by calling the Mayor and the City Council and ask them to complete a thorough financial and legal investigation of the Fire Department and begin the process of making Fire Department management more responsible to the citizens of Omaha who pay for the bloated Fire Department budget. In addition, we believe most employees within the fire department would welcome the changes that could come from such an audit,because it would restore public trust. At this point, I would like to open it up to questions. ample of ignoring the authority of the CIR and ignoring the stewardship responsibility that department heads should have toward the citizens of Omaha. 16)The City of Omaha during the Fahey Administration unfortunately agreed to become a fund raising apparatus for the Fire Union,by collecting through payroll deduction (checkoff)monthly donations to the International Association of Fire Fighters. Such deductions were never approved in the Fire Union Contract and places the city in the position of raising political funds through an employees salary deductions. No other employee group in the City of Omaha has this arrangement. These funds are sent to the national organization to be returned back to Omaha to be used to fund candidate campaigns and provide a huge source of funds to finance union lawsuits against the City. It also provides the funds to finance specific candidates that will carry the union agenda. Such donations from a national organization funneled back to local elected officials, does not show up as donations from the local fire union. Transparency is lost. r o nCo 0 " 0- CD C i-I-) a CD R• tri '-* O N O d 0 ' 0 cn C ca, -,......_ \ 'TJ P a a• n N 0 O n c'T to '0ri o (D 9' 00 Cfg L FZa tte kF 1 it 1p • Omaha Needs to Assert its Authority Over Fire Department As Ernest Hemingway once said,"The best way to find out if you can trust somebody is to trust them." Taxpayers in Omaha have put a lot of trust and faith in the City of Omaha and the Omaha Fire Department over the years and, according to information released by Nebraska State Auditor Mike Foley,it has been unwarranted.A letter from Foley to Omaha Mayor Jim Suttle dated October 20,2010, is filled with evidence of mismanagement,blatant disregard for public funds,and loads of misplaced trust. This untenable situation is made even worse because the Omaha Fire Department has been essentially running itself independent of the mayor and City Council for years. There is a strong likelihood that none of these problems,which took place between January 1,2007 and June 30,2010,would have occurred if there had been greater transparency within Omaha's city government and the fire department. Clearly,management of the fire department acted in a deep,dark,black hole shielded from the public eye. Certainly,the current Omaha City Council,Mayor Suttle,former Mayor Mike Fahey,and the Omaha Fire Department need to be held accountable for this obvious lack of oversight and transparency. Omaha Mayor Suttle,in particular,had completely misjudged the situation within the Fire Department when he told the Lincoln Journal Star five months ago that he"didn't have any heartburn,"about what Foley's audit might show. How is it possible that accounting procedures within a government agency can be so bad that a complete audit cannot be performed? How long would this have continued if Foley had not followed an adage of former President Ronald Reagan:"trust,but verify?" Among the findings outlined in the letter from Foley to Mayor Suttle are: • Improper documentation of donations made to the Kloewer Fund(established as a charity for tax purposes in 1978 to honor former Paramedic Captain Robert J. Kloewer)made it impossible to determine whether disbursements from the Kloewer Fund were actually used as intended by the donor. • The Kloewer Fund was so poorly handled that Foley's office was unable to tell whether the fund has been used as originally intended. • In January of 2007,the Kloewer Fund received a donation of$9,355.This check was subsequently misplaced and not discovered until sometime between September 2009 and January 2010.The donor subsequently declined to replace the donation. • A lack of documentation for reimbursements issued through the Kloewer Fund for such things as airline tickets and hotels. • A woeful documentation and accountability procedure for tracking payroll and hours worked.This resulted in Foley's office finding multiple examples of undocumented firefighters' leaves. • Poor management of the 2008 SAFER Grant,which was ultimately cancelled and funds returned after Foley initiated his audit. There is plenty of blame to be spread among those responsible for allowing this lack of transparency and misplaced trust. One large factor,however,has to be the autonomy given to the Omaha Fire Department. The Foley audit highlighted the most recent accounting issues,but the amount of overtime in the department over the last few years is another blatant example of poor management. And another multi-million dollar unfunded pension liability plan will likely rear its ugly head and put Omaha residents in a financial bind. In Nebraska,public sector management's ability to control staffing levels and the option to subcontract services are two of the few tools available for beleaguered governments. Unfortunately,we've relinquished control of compensation to the Commission of Industrial Relations,which has proved repeatedly to not be a friend of the taxpayer.Omaha,through misguided negotiations,has given away multiple concessions in negotiations with the fire department.When the City of Omaha lacks control over both pay and staffing levels, it has bound itself to the limitless appetite of the union. Our preliminary findings indicate no other comparable Midwest city has surrendered its ability to control staffing levels in the manner that Omaha has. Omaha needs to eliminate the minimum staffing levels currently in place in the union contract and then work with the state legislature to eliminate or reform the Commission of Industrial Relations. It's high time for the city to assert its authority over the Fire Department in order to reestablish accountability,transparency,and trust. President Barack Obama said,"If the people cannot trust their government to do the job for which it exists-to protect them and to promote their common welfare-all else is lost."At this point,all hope is lost that the Omaha Fire Department deserves the trust of the citizens. ',7.h8 z � et 0 o p 0 cai dam o. 0 cr CD C p, N O d cn G N n .0 cam`,, O O W iri ( � 0 CD .� O+ O N O n a' n bd Pa �c A' n rr OCA p 'Cl' `�1 CCD C� 1 O O (a