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Home My WebLink AboutOMNI-CRA-M-04-0024Sioard of Directors Meeting April 26, 2004 • • ITEM 12 SOUTHEAST OVERTOWN/PARK WEST AND OMNI COMMUNITY REDEVELOPMENT AGENCIES INTER -OFFICE MEMORANDUM To: Chairman Arthur E. Teele, Jr. and Members of the CRA Board From: Frank K. Rollason Executive Director RECOMMENDATION: Date: APR 16 2004 File: Subject: Authorization to Negotiate Miami - Dade County Imposed CRA Administration Fee References: Enclosures: Resolution It is recommended that the CRAs Board of Directors approve the attached Joint Resolution authorizing the Executive Director to enter into negotiations, for the purpose of amending existing Inter -Local Agreements, with Miami -Dade County concerning the imposition by the County on all CRAs, county -wide, a 1.5% Administrative Fee to recover costs for County staff time associated with overseeing the CRAs activities and processing CRA related items (see attached 3/25/04 County letters) at an estimated cost for FY'04 of $15,065.00 for the SEOPW CRA and $26,506.00 for the Omni CRA.; said proposed amendments to be brought back to the CRAs Board of Directors for approval. JUSTIFICATION: Miami -Dade County approved this revenue in their FY'04 Budget document as recommended by the Miami -Dade County Manager. As we go forward to have our current and past years' budgets approved by the County, we have been advised that we are not to appear before the County TIF Committee for the initial approval required in the process until this issue is settled (see attached April 7, 2004 e-mail from Mr. Jurgen Teintze, CRA Budget Analyst for Miami - Dade County). In that both existing Inter -Local Agreements with Miami -Dade County do not speak to, nor contemplate, such an administrative fee, it is necessary to negotiate such amendments and receive the CRAs Board of Directors approval before making any such payments. FISCAL IMPACT: TOTAL $41,571.00 ($15,065.00 from SEOPW / $26,506.00 from Omni) FUNDING SOURCE: General Operating- Salaries Temporary ACCOUNT CODE NO: 689004.550011.6.013 FKR/eh SEOPW/CIS ® /� 04- 31 04- 24 • AGENDA AM FINANCIAL INFORMATION FORM Cm OF M WMI COMMUNITY REDEVELOPMENT AGENCY EOPW C or MNI CRA f applicable) CRA Board Meeting Date: June 30, 2003 CRA Section: Finance & Administration Brief description of CRA Agenda Item: County Imposed CRA Administration Fee as amendment to Interlocal Agreement between Miami -Dade Countv and CRA Funding Source: General Operating — Salaries Temporary Project Number if applicable): 689004 YES, there are sufficient funds in Line Item: Index Code: 550011 Minor: 013 Amount: $41,571.00 ❑ NO (Complete the following source of funds information): Amount budgeted in the line item: $ Balance in the line item: $ Amount needed in the line item: $ Sufficient funds will be transferred from the following line items: ACTION ACCOUNT NUMBER TOTAL Project No./Index/Minor Object From $ To $ From $ To $ Comments: Approved by: l �:� '� �-�— Date: q 1� fl v CRA Executive. Director/Designee APPRf1VAT.0 101 r�Ap'_, �'� /�, CRA Accounting Section Date: 7�� 1 Ver d by Q. CRA Finan Section Date: V SEOPW/CRA ®4- 31 Rollason, Frank From: Teintze, Jurgen (OSBM) [JTEINTZ@miamidade.gov) Sent: Wednesday, April 07, 2004 10:52 AM To: Valentin, Miguel A.,- Rollason, Frank; Branker, Carlton; Villacorta, James H Cc: Heffernan, Gerald (CA); Crapp, Tony E. (CMO); Morris, David (OSBM) Subject: RE: cra budgets I will be happy to meet about the budget reconciliation schedules, but also, we need to pursue the differences between the CPA approved budget and the County's requirements. The 1.5% admin charge by the County, and the Children's Trust issue must be resolved. CRA action to address both issues should be taken (by either amending the CRA--budget, or otherwise settling this open transaction and issue) before submitting your budget to the County for approval. You have been advised that all other CRA's have complied with the inclusion in their budget of the 1.5% admin charge and resolved the Children's Trust exclusion issue prior to County prior to approval. While I stated to you before that the TIF Committee could review the budget presentation before these items were 100% resolved, I have reconsidered this. I was counseled that the more official process is the correct process. Jurgen • 1 SIEOI?WJsCRA 0MM/CRA 04-- 31 09- 24 • E • MIAMI-DADE COUNTY, FWIDA MIAMI-DADE®� ,UNI STEPHEN P. CLARK CENTER March 25, 2004 Mr. Frank Rollason Executive Director City of Miami Community Redevelopment Agency 49 N.W. 5 Street, Suite 100 Miami, FL 33128 OFFICE OF MANAGEMENT AND BUDGET 111 N.W. 1ST STREET SUITE 2710 MIAMI, FLORIDA 33128-1992 (305) 375-5143 RE: The 1.5% Administrative Reimbursement Fee to Miami -Dade County Community Redevelopment Agencies (CRAs) Dear Mr. Rollason: During the 2003-2004 budget hearing, the Miami -Dade Board of County Commissioners (BCC) approved the 1.5 percent administrative charge fee to all Miami -Dade County Community Redevelopment Agencies, payable by March 31 of each calendar year. This fee is referenced in the County Manger's Action Taken at Final Budget Hearing, September 17, 2003 memorandum to the BCC. As stated in the County Manager's Budget Message to the BCC, municipalities that utilize tax increments to redevelop disadvantaged communities usually charge their respective CRA for direct staffing and administrative support. Pursuant to Florida State Statute 2003 163.387 (6a) entitled Redevelopment Trust Fund, money in the CRA trust fund "may be expended for administrative and overhead expenses necessary or incidental to the implementation of a community redevelopment plan adopted by the agency. " The County Manager recommended the BCC establish an administrative reimbursement charge to recover costs for County staff time associated with overseeing CRA activities and processing CRA related items (i.e. TIF committee meetings and approval of CRA program funding). The BCC has granted the Manager authority to negotiate and execute interlocal agreements to ensure implementation of this charge, if necessary. During summer and fall of 2003, the County TIF Coordinator notified all Miami -Dade CRAB of the impending costs for services rendered by County staff and documented the concerns about the 1.5 percent administrative charge and cost allocation. This reimbursement compensates the County for hours spent by T1F Committee members hearing redevelopment activities of Miami -Dade County CRAs. The Committee 'serves as an advisory committee to the Manager, who recommends action to the BCC on each request. Primary duties of the TIF Committee include: A. Consideration of all CRA proposals (i.e. Finding Of Necessity, redevelopment plans and amendments, and interlocal agreements. B. Review and approval of budgets of CRA agencies C. Recommendation of policies and reviews of countywide needs relating to the formation of new CRAs. SE0F IJ 04- 31 OMM/CF.A 04- 24 • • Mr. Frank Rollason Page 2 • Eight County departments participate in the TIF Committee meetings. These departments include: ■ County Manager's Office ■ County Attorney's Office ■ Office of Strategic Business ■ Finance Management ■ Property Appraiser ■ Office of Community and ■ Planning & Zoning Economic Development ■ Housing Each participant must spend time reviewing CRA proposals, conceptual designs and follow-up information to ensure each component or plan strategy of Miami -Dade CRAB address both the concerns of the County and the CRA. All County TIF Committee participants and their direct support staff have submitted an estimated percentage of time spent dealing with CRA/TIF related matters. This estimate was done to demonstrate how much time was dedicated to overseeing CRA activities outside of their daily responsibilities to their respective County department. Attached to this document is an explanation of the cost allocation for this administrative charge. This payment calculator is the total reimbursement for all County staffing in management of CRA activities using the Committee members base salary and multiplying the percentage they have submitted to the Office of Strategic - Business Management. All Miami -Dade CRAB will be responsible for paying their portion of the administrative charge to the County as per the attached schedule and include it in their budgets henceforth. Payment for the Southeast Overtown/Park West 1.5 % percent administrative charge of $15,065 is due on March 31, 2004. In closing, we appreciate your awareness and cooperation regarding the above issue. If there are any questions, please do not hesitate to contact David Morris, or me at (305) 375-1537. Sincerely, Jur en H. Teintze TIF Coordinator and Senior Budget Analyst c: Joe Arriola, City Manager, City of Miami George M. Burgess, County Manager Tony. E. Crapp, Sr., Assistant County Manger Bryan Finnie, Director, OCED David Morris, Director, OSBM Gerald Heffernan, -Assistant County Attorney Gary Hartfield, CMO Nicolette Grenell, OSBM • SEOFW/CRA ®DTI/CRA 0 � - 31. 04- 24 MIAMI-DADE COUNTY, FOIDA MIAMI DADE March 25, 2004 Mr. Frank Rollason Executive Director City of Miami Community Redevelopment Agency 49 N.W. 5 Street, Suite 100 Miami, FL 33128 .a II\® STEPHEN P. CLARK CENTER OFFICE OF MANAGEMENT AND BUDGET 111 N.W. 1ST STREET SUITE 2710 MIAMI, FLORIDA 33128-1992 (305) 375-5143 RE: The 1.5% Administrative Reimbursement Fee to Miami -Dade County Community Redevelopment Agencies (CRAB) Dear Mr. Rollason: During the 2003-2004 budget hearing, the Miami -Dade Board of County Commissioners (BCC) approved the 1.5 percent administrative charge fee to all Miami -Dade County Community Redevelopment Agencies, payable by March 31 of each calendar year. This fee is referenced in the County Manger's Action Taken at Final Budget Hearing, September 17, 2003 memorandum to the BCC. As stated in the County Manager's Budget Message to the BCC, municipalities that utilize tax increments to redevelop disadvantaged communities usually charge their respective CRA for direct staffing and administrative support. Pursuant to Florida State Statute 2003 163.387 (6a) entitled Redevelopment Trust Fund, money in the CRA trust fund "may be expended for administrative and overhead expenses necessary or incidental to the implementation of a community redevelopment plan adopted by the agency. " The County Manager recommended the BCC establish an administrative reimbursement charge to recover costs for County staff time associated with overseeing CRA activities and processing CRA related items (i.e. TIF committee meetings and approval of CRA program funding). The BCC has granted the Manager authority to negotiate and execute interlocal agreements to ensure implementation of this charge, if necessary. During summer and fall of 2003, the County TIF Coordinator notified all Miami -Dade CRAs of the impending costs for services rendered by County staff and documented the concerns about the 1.5 percent administrative charge and cost allocation. This reimbursement compensates the County for hours spent by TIF Committee members hearing redevelopment activities of Miami -Dade County CRAs. The Committee serves as an advisory committee to the Manager, who recommends action to the BCC on each request. Primary duties of the TIF Committee include - A. Consideration of all CRA proposals-(i:e. Finding Of Necessity, redevelopment plans and amendments, and interlocal agreements. B. Review and approval of budgets of CRA agencies C. Recommendation of policies and reviews of countywide needs relating to the formation of new CRAs. sE0.PW/L-M f OW/CRA 04- 31 04°- 4 • • • Mr. Frank Rollason Page 2 Eight County departments participate in the TIF Committee meetings. These departments include: ■ County Manager's Office ■ Office of Strategic Business Management ■ Office of Community and Economic Development ■ County Attorney's Office ■ Finance ■ Property Appraiser ■ Planning & Zoning ■ Housing Each participant must spend time reviewing CRA proposals, conceptual designs and follow-up information to ensure each component or plan strategy of Miami -Dade CRAB address both the concerns of the County and the CRA. All County TIF Committee participants and their direct support staff have submitted an estimated percentage of time spent dealing with CRA/TIF related matters. This estimate was done to demonstrate how much time was dedicated to overseeing CRA activities outside of their daily responsibilities to their respective County department. Attached to this document is an explanation of the cost allocation for this administrative charge. This payment calculator is the total reimbursement for all County staffing in management of CRA activities using the Committee members base salary and multiplying the percentage they have submitted to the Office of Strategic - Business Management. All Miami -Dade CRAs will be responsible for paying their portion of the. administrative charge to the County as per the attached schedule and include it in their budgets henceforth. Payment for the OMNI Tax Increment District 1.5 % percent administrative charge of $26,506 is due March 31, 2004. In closing, we appreciate your awareness and cooperation regarding the above issue. If there are any questions, please do not hesitate to contact David Morris, or me at (305) 375-1537. Sincerely, Zin H. Teintze TIF Coordinator and Senior Budget Analyst c: Joe Arriola, City Manager, City of Miami George M. Burgess, County Manager Tony E. Crapp, Sr., Assistant County Manger Bryan Finnie, Director, OCED David Morris, Director, OSBM Gerald Heffernan, Assistant County Attorney Gary Hartfield, CMO Nicolette Grenell, OSBM SE0P%r/',`,4' 11 OMW/CRA. ®4- 24 • Time scent on CRANIF related matters/meetings Percentage of time allocated to CRA/TIF related Department Position matters/meetings Allocated Amount Office of Strategic Director 5% xxxxxxx Business Management Coordinator 80 % xxxxxxx Secretary 5% xxxxxxx Other 25% xxxxxxx Office of Community & Director 5% xxxxxxx Economic Development Assistant to Director 40 % xxxxxxx Secretary 10 % xxxxxxx County Manager's Office Assistant County Manager 15 % xxxxxxx Assistant to Asst. County Manager 15% xxxxxxx Secretary 5% xxxxxxx County Attorney Assistant County Attorney 20% xxxxxxx Finance TIFCommittee Member 5% xxxxxxx Other position 2% xxxxxxx Property Appraiser. TIFCommittee Member 5% xxxxxxx Other position 2.5% xxxxxxx Planning & Zoning TIFCommittee Member 10% xxxxxxx Other position 5% xxxxxxx Housing TIFCommittee Member 5% xxxxxxx Other position 0% xxxxxxx Office of Legislative Affairs Other position 5% xxxxxxx Total $229,675 Including 25% benefits $287,094 1.5% Reimbursement Total $275,389 Unallocated Difference $11,705 Schedule of Administrative Reimbursement to Miami -Dade County CRA 2003-04 TIF Payments 1.5% adm fee Miami Beach: South Beach 7,076,954 106,154 Miami Beach City Center 6,838,997 102,585 Miami: SE Overtown/Park West 1,004,358 15,065 Omni 1,767,093 26,506 Homestead 792,877 . 11,893 Florida City 372,849 5,593 Soui.h Miami 381,609 5,724 Naranja Lakes 124,528 1,868 Total 18,359,265 $275,389 [7 S><+O'PW/CP.A (C)MM/CR4 04- 31 04- 24 • ITEM 12 4/26/04 RESOLUTION NO. SEOPW/CRA R- OMNI/CRA R- A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES ("CRAS") DIRECTING THE EXECUTIVE DIRECTOR TO NEGOTIATE AMENDMENTS TO THE CRAS' INTERLOCAL AGREEMENTS WITH MIAMI-DADE COUNTY RELATED TO MIAMI-DADE COUNTY'S LEVY OF A ONE AND A HALF PERCENT (1.5%) FEE ON THE BUDGETS OF ALL COMMUNITY REDEVELOPMENT AGENCIES IN THE COUNTY - AN AMOUNT ESTIMATED TO BE $15,965.00 FOR THE SEOPW CRA AND $26,506.00 FOR THE OMNI CRA - TO RECOVER ADMINISTRATIVE COSTS ASSOCIATED WITH OVERSEEING COMMUNITY REDEVELOPMENT AGENCY ACTIVITIES; FURTHER DIRECTING THE EXECUTIVE DIRECTOR TO PRESENT ANY PROPOSED AMENDMENTS TO THE BOARDS OF DIRECTORS FOR APPROVAL. WHEREAS, the Miami -Dade County Board of County Commissioners ("BCC") has approved the levy of a one and a half percent (1.5%) fee on the budgets of all community redevelopment agencies in Miami -Dade County to recover administrative costs associated with overseeing community redevelopment agency activities. WHEREAS, the CRAS have submitted their current and prior year budgets to the Miami -Dade County for approval, but have been notified that Miami -Dade County will not proceed with review of the budgets until such time as the current year SEOPW/CRA OMM/ORA 04- 31 04-- 24 0 . 0 budgets have been amended to reflect allocation of $15.,965.00 by the SEOPW CRA and $26, 506. 00 by the OMNI CRA for payment of the fee; and WHEREAS, the fee is not addressed in the existing Interlocal Agreements executed by the CRAS and Miami -Dade County, and the payment of the fee will have a negative impact on the CRAS, as the fee was not reserved in the approved budgets; and WHEREAS, the BCC has granted the County Manager authority to negotiate and execute interlocal agreements to assure the implementation of the fee; and WHEREAS the Boards of Directors wish to direct the Executive Director to negotiate amendments to the Interlocal Agreements to provide for payment of the fee; and WHEREAS the Boards of Directors wish that any proposed amendments to the Interlocal Agreements, be presented to the Boards of Directors for approval; NOW, THEREFORE, BE IT RESOLVED BY THE BOARDS OF DIRECTORS OF SOUTHEAST OVERTOWN/PARK WEST AND THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Page 2 of 3 ®�- 31 OMMICRA 04- 24 Section 2. The Executive Driver is directed to negotiate amendments to the CRAS' Interlocal Agreements with Miami -Dade County related to the County's levy of a one and a half percent (1.5%) fee on the budgets of community redevelopment agencies in Miami -Dade County to recover .administrative costs associated with overseeing community redevelopment agency activities. Section 3. The Executive Director is directed to present any proposed amendments to the Interlocal Agreements to the Boards of Directors for approval. Section 4. This Resolution shall become effective . immediately upon its adoption. PASSED AND ADOPTED this 26th day of April, 2004. ARTHUR E. TEELE, JR., CHAIRMAN ATTEST: PRISCILLA A. THOMPSON CLERK OF THE BOARD 07 APPROVEQo0$ RM AND CORRECTNESS: !J RO VIZAR GEN L COUNSEL 0 S:JHV Page 3 of 3 .PW/C I �D4= 3i OMW/CRA 04- 24