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. .
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H.4 3 4826-9963-2135.1
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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
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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. .
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70 c g. Dated:November_,2010
II;
cn
)
• > H Preliminary;subject to change
H.4 3 4826-9963-2135.1
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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
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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
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.• '.y :.- .. g ; �' Yrzr ..-"'� ; ( (�a�-t��r�r 521.93 Acres t:�x lath*bt
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. .
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'�'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
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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
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Page 3 of 4 form HUD-40095(02/2003)
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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;
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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.
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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.
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