The Miami Lakes Town Council narrowly approved an agreement to pay Mayor Michael Pizzi’s attorney fees generated from his reinstatement court cases, settling one of his two lawsuits against the town in a legal dispute that has dragged on for eight months.
The next step is for both sides to resolve Pizzi’s legal fees from his criminal trial, as his lawyers are seeking $2.5 million in court costs.
At a special meeting two weeks ago at Town Hall, lawmakers who voted to pay his legal team $460,000 for his reinstatement settlement to avoid additional legal expenses were Councilmembers Nelson Rodriguez, Ceasar Mestre, Tony Lama and Pizzi, who was the swing vote.
Vice Mayor Tim Daubert and Councilmembers Frank Mingo and Manny Cid were the opposing voices, saying taxpayers shouldn’t be held responsible for the mayor’s action that led to his indictment on public corruption charges in 2013.
Pizzi was allowed to vote on his settlement despite some suggestions it was a conflict of interest and he should have recused himself from the dais.
But one of this attorneys, Ben Kuehene, said based on state law and Miami-Dade's Commission on ethics, his legal opinion indicated otherwise.
“In full compliance with Florida law and having researched Florida law, including the Florida Ethics on Opinion, and having communicated with Miami-Dade Commission on Ethics and Public Trust, there is not a conflict that exists affecting your ability to vote,” Kuehne told Pizzi. “And Florida law mandates that you must vote unless there is a clear conflict. Your failure to vote constitutes under Florida law an abandonment of your obligation.”
The settlement agreement was approved but not without one council member directly scolding Pizzi for putting the town in a difficult position.
Daubert blasted the mayor for allowing council members to vote on bogus contracts that were part of the FBI sting that nabbed him in 2013.
Two FBI agents posing as sleazy businessmen allegedly offered Pizzi kickbacks in exchange for contracts to do business with the town.
“One of the reasons I am so upset is that the night this whole thing started, we voted on the grants and you knew the companies were bogus,” Daubert told Pizzi. “You put us in a position to vote on something that was illegal, and you said not a word! That’s why it’s so hard for me to okay the town spending the money when it was all your fault!”
Mingo said the residents should not have to bear the costs for Pizzi's legal problems he brought upon himself.
“I don’t believe the taxpayers are responsible,” he said. “I have to stand with them and I have to vote no on this.”
Regardless that the settlement was reduced from the original $750,000 Pizzi’s lawyers had requested, Cid said he’s still torn on the issue.
“My position from the beginning was to bring both lawsuit cases together and come to a solution,” he said.
Other council members said they were reluctant to pay for the mayor’s court cases but wanted to put an end to the financial bleeding.
Mestre, a lawyer, said a recent judge’s decision rejecting the town’s request to dismiss the lawsuit was a sign of things to come.
“This is a tough pill to swallow but I have to put my emotions aside if the attorneys tell you this is the right thing to do,” said Mestre, who is running for mayor in 2016. “If it was my pay check paying for it, I would probably say fight it and fight it to the end. But I can’t tell residents that we must write a check for twice the amount. We do need to stop the bleeding.”
Pizzi echoed similar sentiments.
“It’s time to stop the bleeding and do the best we can to move forward,” he said. “It’s a bitter pill for everybody but we must do what’s best for the overall financial health of the town.”
Rodriguez said he wants to eschew spending more legal fees at taxpayers’ expense.
"I am reluctant to pay for it," he said. "But my decision is strictly a cost-saving measure."
Lama said he’s not happy about his decision but must do what’s in the best interest of the town. “I’m inclined to vote for the settlement but it wasn’t without a significant amount of thought, prayer and consideration for residents who were put in this position,” Lama said.
Kuehne told council members negotiating a settlement was an example of both parties working diligently and not cause taxpayers more court courts.
“This is a settlement of a civil lawsuit without any further public expenses,” he said. “Negotiating the settlement is an example of the success that results from excellent lawyers, including those representing the town led by Town Attorney Raul Gastesi and Pizzi’s legal team discussing the mayor’s cases in good faith.”
According to Town Manager, Alex Rey, a portion of the $460,000 was taken from the town's surplus that was carried over from last year's budget, and the $250,000 Miami Lakes put aside to pay his court fees after Pizzi filed his lawsuits.
He said the town’s municipal services will not be impacted by the budget loss. “They would not interrupt the current delivery of services,” Rey said.
In addition to the settlement agreement, lawmakers tapped the law firm of Trujillo Vargas Ortiz and Gonzalez to represent Miami Lakes in its lawsuit against the insurance carrier, which refused to cover any of Pizzi’s legal expenses, to recover the reinstatement costs and pay his criminal trial fees.
The firm will bill the town at a rate of $350 an hour but has agreed to handle the case on a contingency basis – no recovery, no fees – except for required expenses.