Town's budget planning may require contingencies for Pizzi's legal fees

Government Wednesday, June 17, 2015

 

As Miami Lakes is preparing the town’s budget for the 2015-2016 fiscal year, town officials were put on notice that Mayor Michael Pizzi’s attorneys have requested payment for their court costs for four cases, three of which that ultimately returned him to political office following his arrest on public corruption charges.

According to Town Attorney Raul Gastesi, the mayor’s team of lawyers filed motions for Miami Lakes to pay their legal fees for their services during his criminal trial, Supreme Court and Circuit Court lawsuits and the Third Circuit Court of Appeals case, which ruled he’s the town’s rightful mayor.

The problem for the town, however, is that his attorneys have yet to disclose the amount at a time when council members are set to approve a property tax rate in July for next year’s budget.

Gastesi said Pizzi’s attorneys, including Ed Shohat and Ben Kuehne, filed an affidavit in March indicating the town is entitled to pay his legal bills for the Supreme Court lawsuit, which forced Governor Rick Scott to lift his suspension, the Circuit Court trial and the Appeals Court.

In late May, the attorneys filed another motion asking Miami Lakes for reimbursement for Pizzi's criminal trial, which lasted for three months in 2014.

But Gastesi said the lawyers never submitted the figures to determine the estimated costs for the court cases after he requested the total amount.

“I don’t know when they will submit the fees,” Gastesi said at the June 2 regular Town Council meeting, where he presented the latest report on the attorney’s fees.

Pizzi left the dais during the report citing a conflict of interest, which left council members puzzled over the amount of the court fees during budget season.

“I respectfully ask the mayor to tell his attorneys as soon as possible what the amount is,” said Councilmember Frank Mingo. “I am not saying we are going to be giving him this money but at least we will know what the amount is especially since budget season is coming along so we can plan for any contingencies.”

Gastesi said he had to be terse with his answers and comments because the issue needs to be discussed in private during an executive session.

“It’s not an admission that we are liable for these fees,” Gastesi said.

He said it’s common for attorneys seeking reimbursement for court fees to not to reveal the amount “at the time.”

Gastesi said the motion for the court fees was accompanied by an affidavit with facts and figures based on invoices Gastesi’s firm and the Ackerman firm, which represented the town and former Mayor Wayne Slaton, billed Miami Lakes for their services for three of the lawsuit cases.

Without any figures for the attorney’s fees, Miami Lakes’ proposed budget for next year hangs in the balance.

Town Manager Alex Rey said lawmakers will tentatively adopt a rate for property taxes next month, and his staff is working on the general fund to craft out a budget.

“If we are liable to pay for attorney’s fees, then we have to figure out what to assume for that,” Rey said.

If Miami Lakes is forced to pay the mayor's legal bills, it could impact the town's budget, conceivably placing some projects on hold for next year.