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HomeMy WebLinkAboutSEOPW OMNI CRA 2002-06-13 MinutesCITY OF MIAMI CRA MEETING MINUTES OF MEETING HELD ON JUNE 135 2002 PREPARED BY THE OFFICE OF THE CITY CLERKUTY HALL Priscilla A. Thompson/City Clerk am 34. (A) RECEIVE MONTHLY FINANCIAL STATEMENTS AS OF APRIL 30, 2002. (B) BRIEF COMMENTS ON PROPOSED AUTHORIZING OF PIGGY BACKING OFF CITY'S CONTRACT UNDERWRITING AND FINANCIAL ADVISORY FIRMS. Chairman Regalado: OK. We'll recess the City Commission meeting and start the CRA (Community Redevelopment Agency). Chairman Teele: Very briefly, Ms. Lewis. Board Member Regalado: Mr. Chairman? Chairman Teele: Come on, Ms. Lewis, please. Please, Ms. Lewis, come right on. All right. A resolution receiving the monthly financial statements is presented before us. Is there a motion just to receive it? Vice Chairman Winton: So moved. Chairman Teele: Is there a second? Board Member Gonzalez: Second. Chairman Teele: All those in favor, say "aye." The Board Members (Collectively): Aye. The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-106 OMNI 02-43 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY (CRA) RECEIVING THE MONTHLY FINANCIAL STATEMENTS AS OF APRIL 30, 2002, AS PRESENTED BY THE CHIEF FINANCIAL OFFICER OF THE CRA. 1 June 13, 2002 (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Gonzalez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Joe Sanchez NAYS: None ABSENT: Board Member Tomas Regalado Chairman Teele: Resolution authorizing the piggybacking for the underwriting and advisory firm services. Is there a motion? Board Member Sanchez: Which is -- item 2? Chairman Teele: 1-B. 1-B. Board Member Gonzalez: So moved. Chairman Teele: Moved by Commissioner Gonzalez. Is there a second? Vice Chairman Winton: Second. Chairman Teele: Is there objection? Commissioner Sanchez. Board Member Sanchez: What item is that, sir? Chairman Teele: 1-B. Board Member Sanchez: 1-B? Chairman Teele: Piggybacking. Vice Chairman Winton: I don't see a 1-B. Board Member Sanchez: I don't see a 1-B. Board Member Gonzalez: I don't see a 1-B. I see one. Board Member Sanchez: I see 1. Vice Chairman Winton: I don't see 1-B either, even though I moved it. 2 June 13, 2002 Chairman Teele: 1-B is to piggyback advisory services. I saw an email from the Manager on it. Vice Chairman Winton: We're just trying to find it. Annette Lewis (Executive Director, CRA): It's from -- Board Member Sanchez: All right. Chairman Teele: Ms. Lewis, where -- Ms. Lewis: It's under Item 1. Chairman Teele: 1-B. Ms. Lewis: It's a few pages -- Chairman Teele: Well, let's temporarily pass over it. Let's get the resolutions, et cetera. 3 June 13, 2002 75. AUTHORIZE EXECUTIVE DIRECTOR TO PIGGY PACK. OFF CITY'S FY '02-'04 CONTRACT WITH H.J. ROSS, $600,000, BETWEEN SEOPW & OMNI DISTRICTS. Chairman Teele: All right. Let's go to 2. There were questions about 2 from Commissioner Gonzalez -- Board Member Sanchez: Sanchez. Chairman Teele: Commissioner Sanchez, and we'd like to make sure those questions are clarified. Board Member Sanchez: Yes, sir. On number 2, there is a -- needed a breakdown of the three hundred and forty-three thousand dollars ($343,000). There wasn't a breakdown on that. And just going from the 200 to the 400 to the 600 was a four hundred dollar ($400) increase. What I would like to do -- and -- Vice Chairman Winton: Where are you? Board Member Sanchez: Number 2. Chairman Teele: We're on number 2. Board Member Sanchez: That's number 2, which is the H.J. Ross. Just want to make sure that we vote on -- listen. Writing the seven hundred thousand dollars ($700,000) a check -- a blank check is a great concern to me. I think accountability is important here. And I would like to be - - to feel comfortable. I would like to see a work order for us to, on an individual project, on each project, how much it's going to be, so I could vote on that. Because I certainly don't feel comfortable just handing you a seven hundred thousand dollar ($700,000) check, not knowing exactly what you're going to do with that money. That's how I feel about it. Chairman Teele: All right. The information should have been provided. Annette Lewis (Executive Director of CRA): Well, the breakdown of the existing contract is there. The increase -- Board Member Sanchez: Well, not the three hundred and forty-three thousand dollars ($343,000). Chairman Teele: Yes, it is. Ms. Lewis: Well, sir, the work orders are there. The request for service. Chairman Teele: Let me try to explain one thing. Unlike the City of Miami, the CRA (Community Redevelopment Agency) does not have a Public Works Department, nor do we seek to have one. H.J. Ross -- and this is the model that currently the Miami -Dade Expressway Authority, for example, uses. H.J. Ross is the "consulting engineer." The word "consulting 4 June 13, 2002 engineer" is a term of art. It's not just an engineer. It's the engineering firm that does the work. In other words, H.J. Ross is an extension of the staff, as long as there are projects. They hire -- for example, the technology person, who keeps the computers running, is an employee of H.J. Ross. They may be stationed in the CRA. The work authorizations, for example, for all of the other firms that go out, every architectural firm, every engineering firm, H.J. Ross drafts that, reviews it, and sends it up to the CRA for approval. As opposed to us hiring a Public Works Department, our Public Works Department is the consulting engineer. Our previous consulting engineer was Civil Cadd. Our current consulting engineer is H.J. Ross. And, so, that contract is a program contract, as opposed to hiring staff. So, many of the technical services -- the CRA staff, if you look at -- and with all due respect to Mr. Grant, who is an architect trained -- the CRA is largely financial administrative personnel. We've not gone out and hired three engineers and an architect and this. H.J. Ross is all of that in one. When their contract is over, we don't have any employment obligations and responsibilities, and that is, in effect, the annual cost of running a program such as this. They supervise our architects and engineers. Candidly, the thing that we learned about the Civil Cad contract, as consulting engineer, is that we don't allow our consulting engineer to do architect and engineering projects, at all. Civil Cadd, as consulting engineer -- one of the things that H.J. Ross came in and reviewed is, they recommended that the consulting engineer not do architectural and engineering projects, specifically -- unless specifically authorized by the Board. Margaret Pace Park, the firm that is out there inspecting the contractor everyday is H.J. Ross. They're doing the inspection services. So, everybody who's working for us is, technically, under the consulting engineer. And, so, don't look at the consulting engineer as doing projects, because they don't do projects. They do inspection services, and they do contract management of our architects, engineers, and other professionals, as well as providing the administrative support to the office. They have -- what do you have, a full-time -- two full-time people in the CRA office? Cesar Calas: That's correct, Commissioner. Chairman Teele: So, if there is a technical question, we have those questions answered and resolved by H.J. Ross. And that is the role of a consulting engineer. If you look at MDX, for example, the comparable contract for MDX, I believe, is eighteen million dollars ($18,000,000) a year. OK. Eighteen million dollars ($18,000,000) a year. And if you look at your Public Works Department, for example, and you look at capital projects -- if you look at the capital project of Public Works and the capital project budgets that we're trying to administer, they are relatively comparable at this point. And the reason for that is, we use a consulting engineer. Otherwise, we'd wind up spending all of our time hiring staff and -- Vice Chairman Winton: Managing. Chairman Teele: -- trying to manage them. And by the time they figure out where the bathrooms are, you know, you're in another box. So, H.J. Ross does not do projects. They do get work authorizations, specifically. But those work authorizations are to do specific tasks. For example, the 9th Street Mall. When that project is built, they have a specific line item to do inspections of that work. The Margaret Pace Park, right now they're doing the -- all of the interface with the Department of Transportation, which is enormous, is being done through H.J. Ross. They are an extension of your staff. And one of the issues that we've asked the Director 5 June 13, 2002 rss to do is make sure that the consulting engineer is there, because a lot of the technical questions need to be resolved by the consulting engineer. It's a reasonably normal process, if you don't hire staff to do things, and you can do one of two models. You can hire staff or you can contract with staff. H.J. Ross is contracted staff to the CRA. So, on the motion -- Board Member Sanchez: Well, just to clarify something. The reason why it's here before us today is because, in the last meeting, I didn't have the proper documentation. Chairman Teele: There was not back up. Board Member Sanchez: Exactly. Chairman Teele: Sufficient back up. Board Member Sanchez: Today we have it. But I just want to make sure it's six hundred thousand dollars ($600,000), not seven hundred thousand dollars ($700,000). Chairman Teele: Ms. Lewis. Ms. Lewis: Yes, it is 600,000. Board Member Sanchez: Because there was one for 700,000, too. Chairman Teele: What's the full piggyback? Board Member Sanchez: Six hundred. Ms. Lewis: Six hundred thousand. Board Member Sanchez: OK. Chairman Teele: All right. The base core staffing component, in administrative support, is probably at about 200 -- 250 -- three hundred thousand dollars ($300,000). If you go and you look at your County and City Public Works Departments, that would be about three or four full- time staff people, with staff. So, that's it. And I would say Mr. Calas is probably about 30, 40% with the CRA, including Saturdays and Sundays. Mr. Calas: That's correct, sir. Board Member Sanchez: And I don't doubt that. My concern is that I feel much, much comfortable seeing working orders, and putting the numbers on paper. Chairman Teele: All right. Mr. Calas: Well, Commissioner, I think -- if you see, I think you've got a copy of the work orders that we have had. But like Commissioner Teele said, it's very hard when -- you know, 6 June 13, 2002 consultant -- just see work orders that with us specifically, because we do support the CRA staff, and all of the projects are ongoing. So, we attend meetings with the CRA staff, we advise them, we -- well, I personally check all -- the work orders are other consultants, and I make sure I sign off on it before the other CRA staff do that. So, it's very hard to quantify those things for you. And let's say, you know, I'm going to spend so much time doing this, if it's not a specific project, per se, because we're looking globally at the whole CRA budget and projects. Chairman Teele: Motion. Board Member Gonzalez: Mr. Chairman? Commissioner Teele: Commissioner. Vice Chairman Winton: Did we not move it? Commissioner Teele: It was moved and second, but we're for discussion. Board Member Sanchez: Discussion. Chairman Teele: Commissioner Gonzalez. Board Member Gonzalez: Just for a point of clarification. I'm reading on the back-up document, that was just handed to me, we mentioned six hundred thousand dollars ($600,000) at one point. Now, is this here the approved contract for H.J. Ross, is in the amounts of seven hundred thousand. However, both work orders, today, are six hundred and forty-two thousand and twenty dollars ($642,020), leaving a balance of 57,980. So -- Board Member Sanchez: All different numbers. Board Member Gonzalez: So, is it 600 or -- Board Member Sanchez: It's six hundred thousand dollars ($600,000). That's on the record. Ms. Lewis: That's why we're increasing it by another six hundred thousand dollars ($600,000), sir. Board Member Gonzalez: OK. You're increasing it? Board Member Sanchez: What are you increasing by six hundred thousand dollars ($600,000)? Ms. Lewis: Because we're piggybacking off of the City contract. Board Member Gonzalez: Then we're talking a million, two hundred, right? Board Member Sanchez: But this approval says six hundred thousand dollars ($600,000). 7 June 13, 2002 Chairman Teele: Ms. Lewis, did you read the document? Did you see what he said? Did you read what he said? On the second page, he says the approved contract is in the amount of 700,000, however, work orders to date are 642, leaving a balance of fifty-seven nine. Board Member Gonzalez: Nine eighty. Chairman Teele: Now, is it -- is the contract -- what is the amount of the City contract? You cannot piggyback for more than the piggyback. Mr. Calas: Let me explain what I wrote there, because I wrote it myself. You previously approved, originally -- Board Member Sanchez: Two hundred thousand. Mr. Calas: -- two hundred thousand dollars ($200,000). Board Member Sanchez: Yes, sir. Mr. Calas: And that was -- Vice Chairman Winton: When was that? Mr. Calas: -- and that was increased later on to three hundred thousand dollars ($300,000). In March of 251", I think it was, if I'm not mistaken, it was increased to seven hundred thousand dollars ($700,000), which was our original contract with the City. Those are the seven hundred thousand dollars ($700,000) that you approved on March 25`h', and I gave you breakdown against those seven hundred thousand dollars ($700,000). I think, today, what we're doing is, we have a new contract with the City for fiscal year 02/04 for six hundred thousand dollars ($600,000), and Board Member Gonzalez: So, the total contract, then, is one point three million dollars ($1,300,000), right? Mr. Calas: If you amend it today, yes, sir. Board Member Sanchez: OK. Call the question. Chairman Teele: All those in favor -- Priscilla Thompson (City Clerk): I'm sorry, Commissioner. I'm sorry. I missed the maker and the seconder of the motion. I'm sorry. Vice Chairman Winton: I'll move it. Board Member Gonzalez: I'll second. 8 June 13, 2002 Ms. Thompson: Thank you. Chairman Teele: All those in favor, say "aye." Board Member Sanchez: One "no." Chairman Teele: One "no." The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-107 OMNI 02-44 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO PIGGY PACK OFF THE CITY OF MIAMI'S FY '02-'04 CONTRACT WITH H.J. ROSS FOR THE FULL CONTRACT AMOUNT OF $600,000 BETWEEN THE SEOPW & OMNI DISTRICTS SUBJECT TO THE AVAILABILITY OF SEOPW TIF AND GENERAL FUNDS FROM ACCOUNT NUMBERS 689001.550108, AND 689004.550011. AND A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO PIGGY PACK OFF THE CITY OF MIAMI'S FY '02-'04 CONTRACT WITH H.J. ROSS FOR THE FULL CONTRACT AMOUNT OF $600,000 BETWEEN THE SEOPW & OMNI DISTRICTS SUBJECT TO THE AVAILABILITY OF OMNI TIF AND GENERAL FUNDS FROM ACCOUNT NUMBER 686001.590320.6.860. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Gonzalez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez NAYS: Board Member Joe Sanchez ABSENT: Board Member Tomas Regalado Chairman Teele: OK. Now, on number 3, ATC is the engineering firm. 9 June 13, 2002 Alejandro Vilarello (City Attorney): Mr. Chairman, just one issue. Because the Clerk has picked up these items, and the Omni CRA gets picked up in the same motion. It was not the intent of the Board to also adopt a Omni resolution to this effect, was it? Chairman Teele: We always adopt companion resolutions, so that the work can be in either one. Mr. Vilarello: OK. So, then, the motion was intended to adopt both, the Southeast Overtown/Park West -- Chairman Teele: And the Omni. Mr. Vilarello: -- and the Omni? Chairman Teele: Exactly. Mr. Vilarello: For six hundred thousand dollars ($600,000) each? Chairman Teele: No. Ms. Lewis: No. Chairman Teele: For a total of 600,000. Mr. Vilarello: For the total. Vice Chairman Winton: For a total of six hundred thousand. Chairman Teele: Exactly. Mr. Vilarello: All right. Then the only one other issue, if H.J. Ross' agreement with the City is - - the one that the CRA is piggybacking off of is of a total of the six hundred thousand dollars ($600,000), that uses up that entire allotment of six hundred thousand dollars ($600,000). Vice Chairman Winton: Use up whose entire -- is the allotment only -- Mr. Vilarello: The allotment of the contract. It's up to that maximum amount. Chairman Teele: Let me tell you what's confusing. And I -- I mean, nobody wants to get into the problem. But one of the problems is this: the contract that was piggybacked, initially -- when does that contract expire? Mr. Calas: September, this year, sir. Chairman Teele: September, this year. 10 June 13, 2002 Mr. Calas: Yes, sir. Chairman Teele: Which you have a contract -- do you have a written contract, yet? Mr. Calas: Correct, sir. Chairman Teele: When did you get it? Mr. Calas: The new one? Chairman Teele: The old one. I'm talking about from the CRA. Mr. Calas: The old one, we got it -- Chairman Teele: From the CRA. Mr. Calas: From the CRA? No, I haven't gotten it, sir. Chairman Teele: OK. So, the problem is, this work has been going on -- it's been done, it's been executed, but the contracts have not been issued, OK? We're moving past the first contract to the second contract, which the City has issued, and that's what we're piggybacking now. Mr. Vilarello: And that was what I was talking about. Chairman Teele: Exactly, the 600,000. All right. Vice Chairman Winton: Well, now, I'm -- Mr. City, I'm not sure I understand what you're saying. Mr. Vilarello: The -- Vice Chairman Winton: And maybe I don't even understand "piggyback." Mr. Vilarello: Well, this is -- Vice Chairman Winton: I thought I did, until tonight. Mr. Vilarello: The consulting contract -- what the City has done is, the City has issued a list of qualified vendors in a particular area, and each of those, on the rotation, have a maximum of up to six hundred thousand dollars ($600,000). Chairman Teele: Each one has its own individual amount. Mr. Vilarello: Correct. Vice Chairman Winton: Oh. And the maximum amount -- 11 June 13, 2002 Mr. Vilarello: And when you piggyback -- Vice Chairman Winton: -- on the City's contract is 600,000. Mr. Vilarello: As I understand it, it's six hundred thousand dollars ($600,000). Vice Chairman Winton: And, so, what we've just done is, the CRA has taken the City's entire allocation of six hundred thousand dollars ($600,000)? Chairman Teele: No, no, no, no, you're not taking allocation. Vice Chairman Winton: No. Well -- Mr. Vilarello: You're -- Vice Chairman Winton: It's the City's -- Mr. Villarello: -- you're exhausting -- Vice Chairman Winton: We're exhausting what the City has approval for. Mr. Vilarello: -- H.J. Ross' potential -- Chairman Teele: No. Mr. Vilarello: -- contract. Chairman Teele: Don't use the term "exhausted." Vice Chairman Winton: Well, it's the only term I could -- Chairman Teele: The City contract remains as is unexhausted -- unexpended. Mr. Vilarello: Correct. Chairman Teele: The City contract remains just like it is for six hundred thousand dollars ($600,000). A piggyback is the same thing we do if we go over to Jackson and buy cups or medical gloves from Jackson. We don't expend any of the cups that they award in the contract. We're just buying off of that contract. So, the piggyback -- Vice Chairman Winton: So, it doesn't take any allocation? Chairman Teele: Absolutely not. And to use the term "exhausting" is a little bit -- Vice Chairman Winton: Well -- because, see, I thought that's what he was saying. 12 June 13, 2002 M Mr. Vilarello: That's exactly what I'm saying. Vice Chairman Winton: That's why I'm raising this question. Chairman Teele: That's not what a piggyback does. Mr. Vilarello: Well, it does when you're dealing with the Competitive Negotiations Act. That's the difference between the example that you gave and architects, engineers, and professional consultants. It doesn't impact H.J. Ross, at all, except that H.J. Ross would not be able to do work for the City under that contract. Vice Chairman Winton: Until we -- Chairman Teele: That is not what the personnel -- that is not what the Purchasing Director has opined in writing. That's not what the County Attorney has opined in writing. In fact -- Mr. Vilarello: I'd be happy to take a look at that, Commissioner. Chairman Teele: Well, in fact, I gave you a copy of that, where the Performing Arts Center piggybacked off of the airport miscellaneous contract for all of the work that's going on now. It's a piggyback. Mr. Vilarello: The Competitive Negotiation Act specifically requires that, but I'll be happy to take a look at it. In fact, I'm reexamining it on another issue. Vice Chairman Winton: So, you'll look at it. We vote and we'll figure out -- Mr. Vilarello: And if it's a problem, I'll bring it back to the Board's attention. Vice Chairman Winton: Right. Ms. Lewis: And just to clarify, the resolution does read that the contract, in the amount of 600,000 between the SEOPW (Southeast Overtown/Park West) and Omni districts. So, that was already clarified. [COMMENTS OFF THE RECORD.] 13 June 13, 2002 76. AUTHORIZE CRA TO PIGGYBACK. OFF CITY'S FY '02-'04 CONTRACT WITH ATC GROUP SERVICES, INC., $600,000, BETWEEN SEOPW AND OMNI DISTRICTS. Vice Chairman Winton: OK. What's the next item? Chairman Teele: The next item is resolution 3, piggybacking for environmental services. And, as you know and as you've read, there has got to be an environmental on everything you do today. There is absolutely -- Vice Chairman Winton: Absolutely. No question. Chairman Teele: -- no way you can do anything without environmental. And our environmental firm is the City selected firm. And, again, one of the things that the CRA (Community Redevelopment Agency) is not doing is going out buying -- issuing procurements, except for construction activities. Vice Chairman Winton: So moved. Item 3. Chairman Teele: Commissioner Gonzalez, would you second the item? Board Member Gonzalez: Second. Chairman Teele: All those in favor, say "aye." The Board Members (Collectively): Aye. Chairman Teele: Opposed? The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-108 OMNI 02-45 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO PIGGYBACK OFF THE CITY OF MIAMI'S FY '02-'04 CONTRACT WITH ATC GROUP SERVICES, INC., FOR THE FULL CONTRACT AMOUNT OF $600,000 BETWEEN THE SEOPW AND OMNI DISTRICTS AND FURTHER AUTHORIZING THE CRA EXECUTIVE DIRECTOR TO EXECUTE A CONTRACT IN A FORM ACCEPTABLE TO THE CRA GENERAL COUNSEL, SUBJECT TO THE AVAILABILITY OF SEOPW TIF AND GENERAL FUNDS FROM ACCOUNT NUMBERS 689001.550108 AND 689004.550011. 14 June 13, 2002 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO PIGGYBACK OFF THE CITY OF MIAMI'S FY '02-'04 CONTRACT WITH ATC GROUP SERVICES, INC., FOR THE FULL CONTRACT AMOUNT OF $600,000 BETWEEN THE SEOPW AND OMNI DISTRICTS AND FURTHER AUTHORIZING THE CRA EXECUTIVE DIRECTOR TO EXECUTE A CONTRACT IN A FORM ACCEPTABLE TO THE CRA GENERAL COUNSEL, SUBJECT TO THE AVAILABILITY OF OMNI TIF AND GENERAL FUNDS FROM ACCOUNT NUMBER 686001.590320.6.860. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Gonzalez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Joe Sanchez NAYS: None ABSENT: Board Member Tomas Regalado 15 June 13, 2002 77. AUTHORIZE CRA TO PIGGYBACK OFF CITY'S FY '02-'04 CONTRACT WITH ZYSCOVICH FOR ARCHITECTURAL SERVICES, $600,000, Chairman Teele: The next one is the contract relating to -- I never pronounce the name correctly. Would you read the resolution, Ms. Lewis, correctly, into the record? Annette Lewis (Executive Director, CRA): A resolution of the Board of Directors of the Southeast Overtown/Park West Community Redevelopment Agency authorizing the CRA (Community Redevelopment Agency) to piggy back off the City of Miami's fiscal year '02 and '04 contract with Zyscovich for architectural services -- Unidentified speaker: Zyscovich. Ms. Lewis: Zyscovich, beg your pardon. For architectural services -- Chairman Teele: At least I know I can't say it. Ms. Lewis: -- as detailed in "Exhibit A," for the full contract amount of 600,000; and authorizing the Executive Director to issue the work orders, as detailed in "Exhibit B," subject to the availability of Southeast Overtown/Park West TIF (Tax Increment Fund) funds from account number 689001.550108; further authorizing general counsel to expedite the execution of said contracts. Vice Chairman Winton: So moved, with a question. Board Member Gonzalez: Second for discussion. Board Member Sanchez: Discussion. Chairman Teele: Second for discussion: Commissioner Sanchez, Commissioner Winton. Board Member Sanchez: Mr. Chairman, on the request for service for the Mason Lodge convention project, this is a -- Commissioner Teele: Masonic Lodge. Board Member Sanchez: -- a long-term lease agreement? Is this a short-term or long-term lease agreement? Chairman Teele: The agreement that we have right now is a year-to-year agreement, with a condition -- it's a nominal amount for us to do the feasibility and the design, with the understanding, from the Lodge, that has appeared before us several times, that if we decide to go into this, they will turn this into a 30-year lease agreement with us. Board Member Sanchez: So, there is a -- there is an agreement for a long-term lease agreement. If we're going to put two hundred and twenty-eight thousand dollars ($228,000) into it -- 16 June 13, 2002 Chairman Teele: We're not going to put a dollar into it, until we have a plan and we see if it works. What we've got to do first is make sure that we can fit, and it makes sense to the Manager and to the Police Chief. Board Member Sanchez: That's fine, Commissioner, but there's three work orders here that are allocating money to that project. Chairman Teele: It's actually two, but go ahead. One of them references the project, but it's actually a separate thing. Board Member Sanchez: OK. Chairman Teele: All right. Next question. Commissioner Winton. Vice Chairman Winton: Well, it probably -- speaking of piggy backing, it probably piggybacks a bit on Commissioner Sanchez', because I wasn't clear here. What I was originally going to ask is, with this contract and the one we approved before, which was the environmental one, I was assuming that these are maximum amounts we would spend, but that the expenditures for both this one and the prior one, we would figure out what they might be over time -- Chairman Teele: What they really are. But these are not to exceed -- and this gives what Commissioner Sanchez was asking for is, "I want to see the task that they're going to be working on." All that Ms. Lewis and Mr. Calas have done is gone into the budget document, of the approved budget that we have, picked up the projects that are next up on the list, made an estimate. It's real easy to figure out that these numbers represent 7 to 12% of the capital costs of the project. So, it's seventy-five thousand dollar ($75,000) work authorization. It's a seven hundred and fifty thousand dollar ($750,000) project. Vice Chairman Winton: OK. That's what I was trying to understand. Thank you. Board Member Sanchez: I have another question. With the grant program for 75,000, what is that going to do? Chairman Teele: Which grant are you talking about? Board Member Sanchez: The Revitalization Supplement Grant. Chairman Teele: There are four grants. Two Guys Restaurant, the barbershop -- Ms. Lewis: That's the next item. Wilfred Alvarez, not (inaudible). Chairman Teele: No. The Supplemental Grant Program, under which one are you talking about? Ms. Lewis: It's under the next item. 17 June 13, 2002 N Vice Chairman Winton: Yeah. That's not in four, is it? Board Member Sanchez: Is it? Yeah, it is. Ms. Lewis: No, it's item 5. Vice Chairman Winton: I think you -- did you graduate to 5? Board Member Sanchez: Oh, I'm sorry. I apologize for that. We're ready. Chairman Teele: On the motion, all those in -- it's further discussion. All those in favor, say aye. Chairman Teele: Those opposed? Board Member Sanchez: One "no." Chairman Teele: One "no." The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-109 OMNI 02-46 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO PIGGYBACK OFF THE CITY OF MIAMI'S FY 02-04 CONTRACT WITH ZYSCOVICH FOR ARCHITECTURAL SERVICES AS DETAILED IN EXHIBIT "A", FOR THE FULL CONTRACT AMOUNT OF $600,000 AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ISSUE THE WORK ORDERS AS DETAILED IN EXHIBIT "B' ; SUBJECT TO THE AVAILABILITY OF SEOPW TIF FUNDS FROM ACCOUNT NUMBER 689001.550108; FURTHER AUTHORIZING GENERAL COUNSEL TO EXPEDITE THE EXECUTION OF SAID CONTRACTS. 18 June 13, 2002 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO PIGGY BACK OFF THE CITY OF MIAMI'S FY 02-04 CONTRACT WITH ZYSCOVICH FOR ARCHITECTURAL SERVICES AS DETAILED IN EXHIBIT "A", FOR THE FULL CONTRACT AMOUNT OF $600,000 AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ISSUE THE WORK ORDERS AS DETAILED IN EXHIBIT "B' ; SUBJECT TO THE AVAILABILITY OF OMNI TIF FUNDS FROM ACCOUNT NUMBER 686001.590320; FURTHER AUTHORIZING GENERAL COUNSEL TO EXPEDITE THE EXECUTION OF SAID CONTRACTS. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Gonzalez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado NAYS: Board Member Joe Sanchez ABSENT: None. 19 June 13, 2002 78. AUTHORIZE CRA TO PIGGY BACK OFF CITY'S FY 02-04 CONTRACT WITH WOLFBERG, ALVAREZ AND PARTNERS FOR ARCHITECTURAL SERVICES, $500,000. Chairman Teele: The next one is number 5. Board Member Sanchez: Yeah, the grant program. Seventy-five thousand, what is that going to do? Chairman Teele: Could we just get a motion and a second -- Board Member Sanchez: So moved. Chairman Teele: -- for discussion? Moved for discussion -- Vice Chairman Winton: Second. Board Member Sanchez: For the purpose of discussion. Vice Chairman Winton: Second. Chairman Teele: And second. Moved by Commissioner Sanchez for discussion. Second by Commissioner Winton. Annette Lewis (Executive Director of CRA): Those are the grants that have been given to Jackson Soul Food, Two Guys Restaurant, and Just Right Barbershop. Chairman Teele: As well as Mr.Yuken, as well as -- there's five of those grant programs, Ms. Lewis. The Revitalization Grant Programs are the programs that have already been awarded, that need more technical assistance, particularly, in the area of meeting Code compliance. The five projects are -- that have been designated thus far are the Solomon Yuken Commercial corridor on the first floor, for which there's a breakdown in communication. Mr. Yuken is not communicating. We've given him the four hundred thousand dollars ($400,000) for the fagade -- Board Member Sanchez: What do you mean? Chairman Teele: The seven hundred thousand dollars -- just what I said. The seven hundred thousand dollars ($700,000) to build out the commercial corridor. He's decided that it's not enough money. He's decided that he doesn't want to work through the CRA (Community Redevelopment Agency) process. What he would like us to do is just give him the grant for the money and -- I mean, without getting into it. So, that project is one of the cornerstones of the redevelopment effort on 3`a Avenue. That's one full block of street -- of sidewalk commercial space. He's proceeding -- I mean, we have no communication with him, but there is a seven hundred thousand dollar ($700,000) allocation, as a part of the Fannie Mae, that we need to be able to respond to. In addition, we approved, previously, the Two Guys Restaurant, the Jackson Soul Food, and the Just Right Barbershop, that have some challenges related to the zoning and setback, based upon the historic designation of the buildings. And, then, the final and fifth one is 20 June 13, 2002 the lend/lease program, where we've got the other businesses across from Mr. Yuken, the barbershop -- I mean, the shoe shop, the barbershop, ADA (Americans with Disabilities Act) issues, and those issues. Board Member Sanchez: Mr. Chairman, how much money have we spent on Jackson, Two Guys, Just Right -- how much money have we spent on technical assistance? Ms. Lewis: In technical assistance, approximately 122,000. Board Member Sanchez: Just technical assistance. Ms. Lewis: Just technical. Board Member Sanchez: There hasn't been a nail in the wall? Ms. Lewis: No, sir. They have not expended any of their grant funds. Vice Chairman Winton: Why? Board Member Sanchez: Why? Is there a reason why? Ms. Lewis: Because they -- we have not -- or they have not gotten permits for the plans, as drawn. Vice Chairman Winton: Why? I mean, we've been -- this has been -- I mean, why? It's been a year, I mean, longer. Chairman Teele: I'll tell you why. First of all, Jackson Soul Food building, 60 years ago, was built two inches or two -tenths of an inch over a line. Secondly, the setback requirements in the new Code prevents Jackson Soul Food, without some variation, from being able to retrofit the bathrooms to meet ADA requirements. So, what you're dealing with is this old separate, but equal, quagmire. You can't meet the ADA. You can't build in the back because of our Codes. The bathrooms, if you've been in there, can never -- you know, without shutting down the restaurant and taking the restaurant space to make the bathrooms ADA compliant, the only way to do it is to build on the back. And to build on the back requires that you've got to tear down the front to meet the setback requirements. So, we're trying to make a surgical change in the Code that, somehow, provides for facilities that are in Overtown, and this is a problem of redevelopment. Board Member Sanchez: Has somebody provided plans? Chairman Teele: Yeah, we've got plans. We have plans, but the plans don't meet the Code. Board Member Sanchez: Why? 21 June 13, 2002 Chairman Teele: Because the Code has got to be changed. Because you can't put -- you can't -- you cannot -- Board Member Sanchez: Who did this part of this? Chairman Teele: The plans were done by -- what was the name of the architect? It was an architect done under Civil Cadd's supervision. What was the name of the architect? Cesar Calas: I think it was Martinez, or something like that, sir. I don't know. I don't recall exactly what it was. Ms. Lewis: Somebody out of Coral Gables. Mr. Calas: Out of Coral Gables. Chairman Teele: But, this is the problem that you have, the problem is whether is the plan -- probably no plan should have been done. Probably, no plan should have been done and, probably, we shouldn't even be doing the project. And, probably, we should leave Overtown like it is, because as long as the code says you've got to have a setback -- and part of what we're trying to do is move to say a historic exemption. And this is the same problem we reached down in Goulds with Reverend Wise's church. You could not do anything to rebuild the church, if you didn't pass a special rule. And, so, the problem is the setback against 3rd Avenue. If you noticed, Jackson's right there. There's no setback. There's plenty of room behind it. But the problem is, the Code says you can't use that, because that makes a substantial modification. And, so, you've got to, basically, deal with changing the Code in a historically designated area, which is what it is we're looking at doing. Vice Chairman Winton: I understand the answer. That's a clear answer, and it -- Chairman Teele: But you've got the same problem all down 3rd Avenue. Vice Chairman Winton: All over the place. Chairman Teele: Everything is zero lot line, right on the street. Vice Chairman Winton: But, you know -- Board Member Sanchez: So, what are you going to do, tear everything down? Chairman Teele: You can't tear it down. I mean, you know, that's -- Vice Chairman Winton: No, because -- you know, you've got zero lot line right on the street in downtown. I mean, there's something a little haywire that I don't yet get. I don't understand why this is a problem. Board Member Sanchez: Johnny, this -- 22 June 13, 2002 Vice Chairman Winton: I mean, we've got properties built right up against the street -- Commissioner Teele: I -- Vice Chairman Winton: -- all over this City, and they're able to do rehab and solve these problems. Chairman Teele: You know, can I tell you something? Because we're the CRA, and we can't do it. I've had three consultants, -- Vice Chairman Winton: No, I believe you. I believe you. Chairman Teele: -- including a highly ranking staff person, who I won't finger, who said, "If you all had just gone ahead and gotten a..." -- what's the term, David? David Hernandez: Remodeling. Chairman Teele: -- a remodeling permit, and then got into it -- and that's the way everybody does it. But that's -- we're not remodeling. We were making modifications. And I have said -- Board Member Sanchez: See, the high ranking -- Chairman Teele: No. He -- Board Member Sanchez: You just gave him up. Chairman Teele: He'll remain nameless. Board Member Sanchez: You just gave him up. Chairman Teele: And that's what everybody does. Vice Chairman Winton: So, let's quit doing that, and let's go back and remodel it. Chairman Teele: I mean, you know, we're facing this thing right now with a building. You know, we may go in for a remodeling, but it's -- to me, it's just not the way you should do things. If you're not remodeling, if you're revamping, you should go in for a -- the appropriate permit. But the Codes, it doesn't acknowledge the historic areas. That's part of the problem. Vice Chairman Winton: You've answered my question. It's frustrating. Chairman Teele: It's frustrating. But I think the Board is entitled to a full explanation, in writing, of the Jackson Soul Food -- Vice Chairman Winton: No, you don't have to do that. 23 June 13, 2002 Chairman Teele: Well -- Vice Chairman Winton: I mean, I understand the answer. I mean, that's a very clear answer, and that's totally frustrating. So -- Chairman Teele: But I would like to get a written memorandum, Mr. Calas. On the question on number 5, all those in favor, say "aye." Board Member Sanchez: One "no." Chairman Teele: One "no." The following resolution was introduced by Board Member Sanchez, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-110 OMNI 02-47 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARKWEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO PIGGY BACK OFF MIAMI- DADE COUNTY'S CONTRACT WITH WOLFBERG, ALVAREZ AND PARTNERS FOR ARCHITECTURAL SERVICES AS DETAILED IN EXHIBIT "A", FOR THE FULL CONTRACT AMOUNT OF $500,000 AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ISSUE THE WORK ORDERS AS DETAILED IN EXHIBIT "B"; SUBJECT TO THE AVAILABILITY OF SEOPW TIF FUNDS FROM ACCOUNT NUMBER 689001.550108; FURTHER AUTHORIZING GENERAL COUNSEL TO EXPEDITE THE EXECUTION OF SAID CONTRACTS. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO PIGGY BACK OFF THE MIAMI-DADE COUNTY'S CONTRACT WITH WOLFBERG ALVAREZ AND PARTNERS FOR ARCHITECTURAL SERVICES AS DETAILED IN EXHIBIT "A", FOR THE FULL CONTRACT AMOUNT OF $500,000 AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ISSUE THE WORK ORDERS AS DETAILED IN EXHIBIT "B' ; SUBJECT TO THE AVAILABILITY OF OMNI TIF FUNDS FROM ACCOUNT NUMBER 686001.590320; FURTHER AUTHORIZING GENERAL COUNSEL TO EXPEDITE THE EXECUTION OF SAID CONTRACTS. 24 June 13, 2002 (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado NAYS: Board Member Joe Sanchez ABSENT: None. 25 June 13, 2002 79. AUTHORIZE CRA EXECUTIVE DIRECTOR AND CRA SPECIAL COUNSEL TO NEGOTIATE REACQUISITION AND RE-ESTABLISH OWNERSHIP OF REAL PROPERTY PREVIOUSLY OWNED BY SEOPW CRA AS IT RELATES TO PLANNING OF GRANDE PROMENADE. Chairman Teele: And on number 6, for discussion. This is to authorize the Executive Director to start talking and negotiating on the Grande Promenade. And, Commissioner Winton, I would hope that you would move it. This is the area where we sold the land -- Vice Chairman Winton: Yeah. Chairman Teele: -- and now we want to try to get it back, or maybe we want to get back another section of it. But the fact of the matter is, is that I think we're going to miss a big opportunity, if we don't have a clear path to Bicentennial. Vice Chairman Winton: Agreed. So moved. Board Member Sanchez: I'll second it. I'm saying that the property is high, but I know it's needed. Chairman Teele: But we're not buying it today. Board Member Sanchez: No, no. But I'm saying, the price, it's there -- I believe it's high, but I -- it's a partial land that we need and we want to complete that, and, I could support it. So, I second it. Chairman Teele: Moved and second. Objection? All those in favor say "aye." The Board Members (Collectively): Aye. The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-1 I 1 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA EXECUTIVE DIRECTOR AND CRA SPECIAL COUNSEL TO NEGOTIATE THE ACQUISITION OF THE REAL PROPERTIES AS DESCRIBED IN EXHIBIT "A", AS IT RELATES TO THE PLANNING OF THE GRANDE PROMENADE, SUBJECT TO THE AVAILABILITY OF SEOPW TIF FUNDS FROM ACCOUNT NO. 689001.550108. 26 June 13, 2002 (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None. ABSENT: None. 27 June 13, 2002 80. DEFER PROPOSED RESOLUTION AUTHORIZING CRA EXECUTIVE DIRECTOR TO ENTER INTO JOINT INTERLOCAL AGREEMENT WITH DDA AND CITY TO SPONSOR TRI-RAIL AUTHORITY. Chairman Teele: On item number 7, I would ask that we defer it. Item number 7 simply says, if they County won't act on Tri-rail, then maybe the DDA (Downtown Development Authority) and CRA (Community Redevelopment Agency) will. But the message has been received loud and clear. Mr. Harper and the Executive Director of Tri-rail have expressed an interest in communicating. One of our goals, Johnny, is if we can get Tri-rail service Downtown, it will change property values dramatically. And, you know, it's the kind of thing that the Heat should have been way out in front of a long time ago. And, item number 8, for discussion. Board Member Gonzalez: There wasn't -- you just move to defer. There was no vote on it. Chairman Teele: Motion to defer item 7. Board Member Gonzalez: Second. Second. Chairman Teele: Moved by Commissioner Sanchez -- I mean, Commissioner Gonzalez. Board Member Sanchez: To defer 8. Vice Chairman Winton: What's the harm in passing the resolution? Chairman Teele: There's nothing wrong with it, but I think Mr. Harper wants to make sure that the County doesn't feel -- he's the one that went to the Gold's conference and expressed all the frustration. But he's saying, give the County a chance. Now, they're taking another look at it. Vice Chairman Winton: Well, all right. But I'm not inclined to -- 28 June 13, 2002 81. AUTHORIZE EXECUTIVE DIRECTOR TO ENTER INTO PURCHASE AGREEMENT, $2,950,000, FOR ACQUISITION OF REAL PROPERTY, Chairman Teele: And on number 8, Commissioners, would you just move it for discussion? Board Member Sanchez: So moved. Vice Chairman Winton: So moved. Board Member Gonzalez: Second. Chairman Teele: Moved for discussion, and second. This is the piece that we've heard so much from Dover Kohl about. We have a commitment from the Feds to provide us with three million dollars ($3,000,000) for the improvements around this. The idea is to create a grand open space, and space that uses liner buildings to move the club activities a little bit over toward 10th. Let me just say this. The City of Miami's appraisals appear to be about 10 to 12%. The Southeast Overtown -- Joel, the County property appraiser, called me personally. He couldn't believe what's going on. It's up 125% in the area. I know, Commissioner Winton, you said the numbers are inflated some time ago. They continue to be moving well ahead. And what is really going on is this belief that the Performing Arts Center, coupled with the kinds of restaurants, that this is going to be a new South Beach area with nightlife and it's not going necessarily to be in the Omni. It's going to be in the funky part right -- buttressed by 95 -- 395, et cetera. And, so, the consultants have all recommended this item, and I strongly concur that we should move forward on it. Vice Chairman Winton: And this is -- this has a big parking component to it? This -- Chairman Teele: This has a parking component to it. But this is absolutely necessary for the environmental component. This is where it all -- if you go -- if you drive down the abandoned railroad right now, you'll see everything back there. Vice Chairman Winton: Right. Chairman Teele: Dumpsters, you'll see patios. All that stuff is illegal. I shouldn't say illegal. All that stuff is -- what's the -- it's a technical infringement across their property line. The property line is the wall of the building. If you don't provide a place for environmentals, et cetera, then you, essentially, shut down all the clubs. All of the clubs right now are operating with the dumpsters in the right-of-way. Eventually, that right-of-way is going to be what we saw in the spring. That's going to be just beautiful pedestrian area, with the environmentals are going to be off across -- on the other side. Vice Chairman Winton: What's an environmental? Board Member Sanchez: Trash. Vice Chairman Winton: Oh. Yes. 29 June 13, 2002 Chairman Teele: Trash. Clubs generate mountains and mountains and mountains of trash on a daily basis. Vice Chairman Winton: So, they're going to all put their dumpsters in one central location? Chairman Teele: Well, a series of locations there, yes. Vice Chairman Winton: OK. Chairman Teele: Each one will have their own. There will be a whole series of things. They've done this -- Dover Kohl has done this, I think, in South Carolina or somewhere, where they even have chilled place for garbage to be stored, ice making capabilities. And the kinds of back -room operations that you can't have in the Grande Promenade, in that space back there. So, this is absolutely critical to their development plan -- Board Member Sanchez: But the component of that property will be commercial on the bottom, then environmental and parking. Chairman Teele: It will be commercial on the bottom, that is, liner buildings with -- not deep buildings, but just restaurants, pizza places, environmental, and then parking on the top. Board Member Sanchez: OK. Chairman Teele: And, perhaps, some office mixed use, in accordance with what Commissioner Winton and others are promoting in that area. Vice Chairman Winton: So, what's the action we need to take here? Chairman Teele: The action is to authorize the Executive Director to acquire the property with the Attorney -- actually, the general -- special counsel and the Executive Director, if we can get it at the price not -- of the appraised price. Board Member Sanchez: And the property has -- and the price hasn't changed? Seventy-five dollars ($75) a square foot? Vice Chairman Winton: No, that's -- William R. Bloom (Special Counsel, CRA): The (inaudible) has been authorized (inaudible) purchase price of -- Priscilla Thompson (City Clerk): I'm sorry, Mr. Bloom. Could you turn on your mike? Mr. Bloom: -- two million, nine hundred and fifty thousand dollars ($2,900,050), based upon the price of seventy-five dollars ($75) per square foot. There's also a provision in the contract that has a hundred thousand dollar ($100,000) holdback for environmental issues, because our 30 June 13, 2002 consultants were not sure whether some waste oil tanks had been removed from the property. The estimated cost was forty thousand dollars ($40,000), and we were trying to protect ourselves. Board Member Sanchez: All right. Chairman Teele: The property has been listed for 125. Every -- all of the owners have told -- all of the owners of the abutting property have urged the seller to make a deal with the CRA, because the worst thing that could happen would be more development there; and further compound the existing business owners' problems. And, so, they're looking for a way to solve the problem. We don't want to fine them or be in a position where we -- we got them, essentially, because Miami Beach treated them like dirt, and that's the real big issue that's own everybody's mind. Further questions? All those in favor of the item, Commissioner Sanchez, all in favor, say "aye." The Board Members (Collectively): Aye. Chairman Teele: All opposed? The item is unanimous. The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-112 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A PURCHASE AGREEMENT AS DETAILED IN EXHIBIT "A", IN AN AMOUNT NOT TO EXCEED $75 PER SQUARE FOOT TOTALING $2,950,000 PLUS RELATED CLOSING COSTS, FOR THE ACQUISITION OF THE REAL PROPERTY AS DESCRIBED IN EXHIBIT `B" AND FURTHER AUTHORIZING SPECIAL COUNSEL TO PREPARE ANY NECESSARY NOTICES FOR THE EXECUTION OF THE PURCHASE AGREEMENT, SUBJECT TO THE AVAILABILITY OF SEOPW TIF FUNDS FROM ACCOUNT NUMBER 689001.550108. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 31 June 13, 2002 Om Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None. 32 June 13, 2002 82. APPROVE AMENDMENT TO FISCAL YEAR 2002 BUDGET. Chairman Teele: Is there -- are there further matters? Annette Lewis (Executive Director of CRA): Yes, sir. You missed the resolution authorizing the amendment of the fiscal '02 budget, which is a component of item 1, sir. Chairman Teele: The fiscal '02 budget? Ms. Lewis: That is correct, sir. Chairman Teele: OK. This is the budget update, based upon the transactions that have transpired, the sale of the property, the underlying property, et cetera? Ms. Lewis: Correct. And the completion of field work for the audit for fiscal '01, sir. Chairman Teele: All right. Is there a motion on that? Board Member Sanchez: Where is that? Vice Chairman Winton: I'm not sure I understand. Board Member Sanchez: Where is that at? Board Member Gonzalez: I don't understand what you're saying. Vice Chairman Winton: I'm slow right now. So, what's the issue again? Ms. Lewis: We're amending fiscal '02 budgets. Vice Chairman Winton: Where do I look at that? Ms. Lewis: The first item. Vice Chairman Winton: Oh, item 1. Board Member Sanchez: I thought we voted on it. Chairman Teele: No, we -- Ms. Lewis: No, not that portion. Board Member Sanchez: So, there's an amendment of 6,000,000? Vice Chairman Winton: Oh, this was the adjustment stuff. 33 June 13, 2002 Ms. Lewis: Correct, sir. Chairman Teele: The adjustments. Vice Chairman Winton: And these are -- Chairman Teele: I think, one of the things that we've got to figure out -- and I don't want to -- Mr. Nachlinger is not here, but the Manager is. I think, given the new environment that we're in, it is impossible for the CRA (Community Redevelopment Agency) and the City of Miami to have the same auditor, for a lot of reasons. It's bad, it gets into all the Enron issues of the consulting services, et cetera. I will tell you that the City has had practices for 15 years that have not changed, even though we passed at least four separate resolutions. The City doesn't make payments in accordance with the State law, nor in accordance with our resolutions, even the basic things, such as the TIF (Tax Increment Fund) payments. The County TIF payment is always received by check on January 30th or there -- Ms. Lewis: By December 31 st ChairmanTeele: I thought it was by January --well, by December 31St or January 30th. Oh, we have to pay it out by December 31St. You know, we have to chase around and find a journal entry, which may be in April or March. The last journal entry we could find is in March, but it's not what the County says we should be receiving. I think one of the things we need to do is change the fiduciary -- is change the external auditor, so that the CRA and the City have separate auditors. The embarrassing thing -- and I don't want to get into this -- is that the City closed out their books before the CRA's books were closed out, by the same financial auditor. And there were a series of, not errors, but adjustments that had to be made in the CRA books. They make adjustments in the City books, but the CRA adjustments weren't made. And, so, once the adjustments are made by the external auditor, it doesn't tie back in now with the City book's starting balances. And, so, you get into that kind of process. The external auditor only will do -- start on the CRA and other agencies, after they finish the City, which makes sense. But, then, the City is saying, "Close out the books." In this case, we were all trying to close out the books so we could get out from under the Oversight Board. So, the books got closed out before all adjustments were made. And I think one of the things that we need to really look at is just having a certain tension, at least, between the auditors, to ensure that the books are kept right, is that we should have our own external auditors. The City should have their own. And on those things that the City is maintaining the records for the CRA, then they need to be closing them out at the same time or relatively. There's another issue as to whether or not we should split and allow another fiduciary to keep some of the funds, especially since the City refuses to make the deposits in the manner prescribed by State law, such as a check. As long as they're making journal entries, then there's no way to actually -- you have to do research all the time, and the numbers -- according to the County staff, the numbers don't tie in for what the County -- the County says we're depositing "X," but why is the City depositing "X minus 2" Because those numbers are supposed to be identical dollars in percentages, that is, based upon the millage rate. So, there are just a series of issues. These are -- technically, there's nothing wrong. The CRA, unlike some other entities, does not write one check. All checks are written by fiduciaries. In this case, it's the City of Miami. But I do think there is a substantial interface issue that needs to 34 June 13, 2002 be addressed. This is the CRA's effort to tie the books back in where they should have been tied, as of October 1. Vice Chairman Winton: And on that same issue, Ms. Lewis told me today that we still don't have a management letter from KPMG (Klynweld, Peat, Marwick, Goerdeler) for 2000, nevermind a closed audit for 2001. And, I mean, that's just nuts. I mean, that's -- Chairman Teele: Johnny -- Vice Chairman Winton: We need to -- Chairman Teele: -- this is the problem. The City is the client. Vice Chairman Winton: The City's what? Chairman Teele: The City is the client. If you were KPMG, you'd take care of the City first. The problem is the CRA is a footnote. Vice Chairman Winton: So, it's to your point. I mean, it's inexcus -- Chairman Teele: The CRA is a footnote in the context of the City of Miami. Vice Chairman Winton: I mean, it's inexcusable that we don't have a management letter from them. And I'm mad at myself because I asked them, very specifically, when we went through the 2000 budget, I said I want to know where the management letter is. They said they're working on it. And I asked them two or three times after that, and then I forgot, until today, when we were talking about this whole audit business. So, I was so mad at myself, I wanted to go strangle someone, but -- I mean, we can't tolerate that. That's just absolutely inexcusable, not to have a management letter from them. Chairman Teele: Well, I think the request would be to place on the next regular agenda, the request for -- Board Member Sanchez: Report. Chairman Teele: -- qualifications or a competitive process for the external auditor. And, I think, we should ask that the City Manager chair that committee. I mean, I -- the idea here is not to have separate, you know, but to have interface, but not go separate and alone. But, at the same time, the auditors need to know that the books are maintained by the City, and they've got to look at what the City is entering -- the journal entries on this stuff. Vice Chairman Winton: I'd also like to have our auditors in front of us, at the next meeting, to find out why the hell they can't get the work done. Chairman Teele: It'll be done for the 24th 35 June 13, 2002 Vice Chairman Winton: Thank you. Board Member Sanchez: Mr. Chairman? Chairman Teele: Yes. Board Member Sanchez: On the budget, I only have one question. There's a big decrease in the insurance liability from 15,000 to 5,700, 70% -- there's a decrease there. I just want to make sure that, please, whatever you do, pay the Directors (inaudible) offers liability insurance. Ms. Lewis: We do, sir. Board Member Sanchez: Thank you. Ms. Lewis: We're already paid for the year. Board Member Sanchez: Thank you. Chairman Teele: On the motion -- Vice Chairman Winton: Now, we're just -- the only thing we're doing on this motion is making these internal adjustments; is that not correct? Ms. Lewis: That is correct. That is correct. Vice Chairman Winton: OK. So moved. Ms. Lewis: We're amending the budgets. Chairman Teele: No, no, no, no. You are amending the budget, and you're reflecting the funds that have been -- doesn't this reflect the funds that have been received for the sale of the building? Ms. Lewis: It reflects the sale of Park Place, and it removes the sale of the town homes, and then that different is 700,000. That's reflected in the cover memo. Chairman Teele: These are actions that have already been individually approved -- Vice Chairman Winton: Yes. Right. Chairman Teele: -- but, it does change the numbers. Vice Chairman Winton: Yeah. I -- Board Member Sanchez: Call the question. 36 June 13, 2002 Chairman Teele: Is there a motion and second? Vice Chairman Winton: Yes. So moved. Board Member Sanchez: Second. Board Member Gonzalez: Second. Chairman Teele: All those in favor, say "aye." The Board Members (Collectively): Aye. Chairman Teele: Those opposed have the same right. The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-113 OMNI 02-48 A RESOLUTION OF THE BOARD OF DIRECTORS OF COMMUNITY REDEVELOPMENT AGENCY (CRA) APPROVING AN AMENDMENT TO THE FISCAL YEAR 2002 BUDGET (AMENDED BUDGET) ATTACHED HERETO AS EXHIBIT "A," AND TRANSMIT TO MIAMI-DADE COUNTY. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Board Member Joe Sanchez Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. Board Member Angel Gonzalez Board Member Tomas Regalado NAYS: None. ABSENT: None. 37 June 13, 2002 83. REQUEST MANAGER ARRANGE MEETING INCLUDING MAYOR DIAZ BEFORE JUNE 24TH REGARDING CRA BOUNDARIES. Chairman Teele: And the meeting, the regular meeting, will be on the 241h and, hopefully, we can clarify all of the issues. I just wanted to make one point, before we close out the CRA (Community Redevelopment Agency) meeting. I received a call from the Manager regarding the boundaries issue. And, Mr. Manager, I'm going to ask, specifically, if I can meet with you and the Mayor on the boundaries issue before the 24th. I know you're going to be out of town some time. And what I'm going to do today, with your permission, is at least pass, on first reading, the boundaries, with the understanding that you will have the right, before a second reading on the 24th, to give your professional opinion. And I want to just state, for the record, I know that you've got some concerns about revenues that may or may not be diverted from the general fund to the redevelopment area. And as I've indicated, all of these dollars would be within the expanded boundary area. And I just want to state, for the record, the intent is, is that if the boundary goes to Watson Island, it would be used primarily, at least, for the purpose of the boundary change, for Bicentennial Park and Watson Island. In other words, that sub area -- that new sub area would receive all the benefit. And the only thing that I'm going to say to the Manager and I'm going to say to the Commission, district -- what district do you have, Johnny? Vice Chairman Winton: Two. Chairman Teele: -- two provides over 50% or 40%? Vice Chairman Winton: Fifty-five. Chairman Teele: Fifty-five percent of the ad valorem tax base of the entire City. The boundary and the sub area that we're proposing would be all of District 2, and I think that we need to think of this in the context of how we can make a destination within the downtown area. This is not about Overtown. The money doesn't go to Overtown. It doesn't even go to Park West. But the fact of the matter is, we're never going to get a four hundred million dollar ($400,000,000) museum in the park complex, if we don't figure out how to put some -- hold that money. And the same thing that I keep saying, as it relates to parking surcharges, the parking surcharge is money that is 80% collected in District 2 -- I don't represent District 2, but the money goes all over the County, and there's nothing wrong with that. But, at some point, we've go to harness enough of those dollars and keep them into that area for the purpose of the redevelopment of that area. We cannot continue to just spread money all out, especially when the money winds up going, not in capital projects, but in salary. And I, for one, am taking the very clear position that, if we cannot harness dollars to stay in the downtown area, then why keep raising taxes? I mean, you know, it's just -- you raise taxes to take care of the overall area. But downtown and Coconut Grove, we hear from them all the time. They have been shortchanged in the way dollars have been distributed. And, Commissioner Winton, I don't mean -- this is not my district, but as a redevelopment, I can tell you, you will never have what you've got the potential of building if we don't develop a revenue stream that doesn't raise the money from Overtown, and Liberty City, and Allapattah, and Wynwood. And as long as that money is being raised on Watson Island and staying in the Watson Island/Bicentennial Park, I've got to tell you, that's the only way it's going to happen, because -- don't ask me. And my district is being squeezed out of their 38 June 13, 2002 houses to help pay for a museum or a complex. Yet, but one thing, if you bring Guilliani to this City, tomorrow, the one thing Rudy Guilliani will tell you is that it has been the culture that has kept New York afloat before 9/11 and after 9/11. And, so, the only thing that I'm suggesting to the Commissioners is, don't think about your district. Think about our City, when we talk about the boundary extension. Because the sub area that we're proposing is a Bicentennial/Watson Island sub area, where new taxes raised, and not just City taxes, but County taxes would stay in that area for the purpose of the redevelopment. And I'm just putting it on the line as a policy matter, because I think you can argue either side of that coin. There's no right answer and there's no wrong answer, and everybody can take -- Board Member Sanchez: I'm glad you understand that. Chairman Teele: -- and take the position that everybody is most comfortable with. Board Member Regalado: Mr. Chairman, you're done with... Chairman Teele: I would -- Board Member Sanchez: Move to adjourn. Chairman Teele: -- move to adjourn the meeting. Board Member Sanchez: Second. Carlos Gimenez (City Manager): Mr. Chairman, you asked for a meeting with myself and the Mayor before the 24th. It's going to be difficult before the 24th. The Mayor will be leaving town tomorrow, and will not be back until the 24th. I leave town mid -week next week, but I'll be back. I'll have a couple days next week, and I'll be back before the 241h Chairman Teele: Then maybe we could have a sunshine meeting with you, and whatever Commissioners that would like to step in. Vice Chairman Winton: Didn't you want to move that for first reading? Chairman Teele: Not in the CRA board meeting. Vice Chairman Winton: Oh, OK. Board Member Sanchez: Madam Clerk, did we vote on the budget issue? Priscilla Thompson (City Clerk): Yes, you did. Chairman Teele: The motion to adjourn is in order. Board Member Sanchez: Second. 39 June 13, 2002 Chairman Teele: Meeting stands adjourned. The following resolution was introduced by Chairman Teele, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 02-114 OMNI 02-49 A MOTION TO ADJOURN TODAY'S COMMUNITY REDEVELOPMENT AGENCY MEETING. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Board Member Joe Sanchez Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. Board Member Angel Gonzalez Board Member Tomas Regalado NAYS: None. ABSENT: None. Chairman Teele: Thank you, Mr. Chairman. Board Member Regalado: Thank you. 40 June 13, 2002 on There being no further business to come before the Community Redevelopment Agency for the Southeast Overtown/Park West and Omni District, the meeting was adjourned at 9:55 p.m. ATTEST: PRISCILLA A. THOMPSON City Clerk SYLVIA SCHEIDER Assistant City Clerk (SEAL) ARTHUR E. TEELE, JR. Chairman 41 June 13, 2002 M RECEIPT DATE: September 25, 2002 SUBJECT: Minutes for the June 13, 2002 CRA Meeting MAYOR DIAZ VICE CHAIRMAN WINTON COMMISSIONER GONZALEZ COMMISSIONER SANCHEZ CHAIRMAN REGALADO COMMISSIONER TEELE Received 4 r- /2 r