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HomeMy WebLinkAboutSEOPW CRA 2010-05-13 Supplemental MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com • IN O9▪ IEP 19 1i? Meeting Minutes Thursday, May 13, 2010 5:00 PM Supplemental Agenda Miami City Hall 3500 Pan American Drive Miami, Florida 33133 SEOPW Community Redevelopment Agency Richard P. Dunn 11, Chairman Francis Suarez, Vice -Chairman Marc David Sarnoff, Commissioner Wifredo (Willy) Gort, Commissioner Frank Carollo, Commissioner CRA OFFICE ADDRESS: 49 NW 5th ST, SUITE 100, Miami, FL 33128 Phone: (305) 679-6800, Fax: (305) 679-6835 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 INVOCATION AND PLEDGE 1. 10-00608 Present: Chair Dunn II, Commissioner Sarnoff, Vice Chair Suarez, Commissioner Carollo and Commissioner Gort On the 13th day of May 2010, the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency of the City of Miami met in regular session at Miami City Hall, 3500 Pan Amerian Drive, Miami, Florida. The meeting was called to order by Chair Dunn at 7: 32 p.m. and was adjourned at 8: 34 p.m. Note for the record: Vice Chair Suarez entered the SEOPW CRA Meeting at 7:35 p.m. and Commission Carollo entered the SEOPW CRA Meeting at 8:01 p.m. ALSO PRESENT: James H. Villacorta, Interim Executive Director, CRA Clarence Woods, Assistant Executive Director, CRA Gail A. Dotson, Assistant General Counsel, CRA William R. Bloom, Special Counsel, CRA Pamela L. Latimore, Assistant Clerk of the Board CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, WITH ATTACHMENT(S), AUTHORIZING EXECUTION OF A GRANT AGREEMENT, IN AN AMOUNT NOT TO EXCEED $10,000,000, PAYABLE AT THE RATE OF $2,000,000 PER YEAR FOR A PERIOD OF FIVE (5) YEARS, BEGINNING FISCAL YEAR 2011 AND ENDING FISCAL YEAR2015, IN SUBSTANTIALLY THE ATTACHED FORM, WITH CAMILLUS HOUSE, INC., TO ASSIST WITH ITS CONSTRUCTION OF A NEW FACILITY AT 1603 N.W. 7TH AVENUE, MIAMI, FLORIDA; ALLOCATING FUNDS FROM SEOPW TAX INCREMENT FUND, "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File # 10-00608 Cover Memo 5-13-2010.pdf File # 10-00608 Financial Form 5-13-2010.pdf File # 10-00608 Backup 5-13-2010.pdf File # 10-00608 Legislation 5-13-2010.pdf File # 10-00608 Attachment to Legislation 5-13-2010.pdf Motion by Board Member Sarnoff, seconded by Board Member Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Chair Dunn II, Commissioner Sarnoff, Commissioner Gort and Vice Chair Suarez Absent: Commissioner Carollo CRA-R-10-0040 Chair Dunn: Next item. James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Item number one on the supplemental Overtown agenda is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency, with attachments, authorizing the execution of a grant agreement, in an amount not to exceed $10 City of Miami Page 2 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 million, payable at the rate of $2 million per year for a period of five years, beginning fiscal year 2011 and ending fiscal year 2015, in substantially the attached form, with Camillus House, Inc. to assist with the construction of a new facility at 1603 Northwest 7th Avenue, Miami, Florida; allocating funds from SEOPW (Southeast Overtown/Park West) Tax Increment Fund, Other Grants and Aids. This is in accordance with the interlocal agreement we entered into between the City, the County, and the CRA (Community Redevelopment Agency) regarding the CRA's commitment to funding in accordance with the board's direction to -- two meetings ago to bring back an agreement for its approval. Chair Dunn: Is there a motion? Commissioner Sarnoff. I'll move this for discussion. Commissioner Gort: Second. Vice Chair Suarez: Second. Chair Dunn: All right, been motion and second for discussion. Mr. -- Commissioner Sarnoff. Thank you, Mr. Chair. Chair Dunn: -- Commissioner Sarnoff. Commissioner Sarnoff- Jim, what are the safeguards in this? Mr. Valentin: We have an extensive list of safeguards. Perhaps our special counsel would be better to -- Commissioner Sarnoff Mr. Bloom. Mr. Villacorta: -- enumerate them for you. Commissioner Sarnoff I haven't had the chance to read this in total. Tell me the safeguards you put into this. William R. Bloom (Special Counsel, Community Redevelopment Agency): The concept is that until Camillus House has been able to establish that it's either finished the facility or up to $2 million can be disbursed from the grant to finish the facility, provided that there are sufficient funds available, there'll be an agreement entered into with Camillus House's lead lender so that the funds will be disbursed as the construction loan would be so that the CRA is secured that no more than $2 million will be disbursed before the completion of the facility. And that as the $2 million is being disbursed, if there is -- the loan is imbalanced, Camillus House will have to raise additional funds before the balance of the CRA's $2 million would be disbursed. Commissioner Sarnoff What protections does this board or body have if they fall short in their needs? In other words, if they need more money and they don't get it. Mr. Bloom: Before any of the CRA's money can be disbursed, Camillus House has to establish that it has provided sources and uses of funds. There's a third -party inspector verifying the cost to complete the facility, and there are -- from all the sources, there is sufficient money being funded pro rata to complete the facility. So as you do -- Commissioner Sarnoff And who makes that determination? City of Miami Page 3 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Mr. Bloom: The third -party inspector and the lead lender for Camillus House so that if there's not sufficient funds to be disbursed -- to complete, it -- just like a construction loan, the borrower has to come up with more money to keep the transaction in balance before further money from the CRA can be disbursed. Commissioner Sarnoff But who regulates that for the CRA? Mr. Bloom: The executive director has approval of the funding agreement, which will set up the mechanism. Commissioner Sarnoff.- So the executive director, who's sitting there, would make a determination that they are abiding by the agreement and have the ability to complete the project? Mr. Bloom: The executive director is going to be really signing off on the funding agreement itself. Again, just like, you know, a loan -- Commissioner Sarnoff Right. Mr. Bloom: -- there'll be a third -party inspector. There'll be -- an architect will be signing off on -- Commissioner Sarnoff.- So it's just like a construction loan. Mr. Bloom: Just like a construction loan. And if the loan is out of balance, Camillus House doesn't have the funds to complete, at that point no further grant funds get disbursed until it's brought in balance. And again, only $2 million of the CRA's $10 million grant can be expended until the facility is completed. Commissioner Sarnoff Only two million of the ten -- Mr. Bloom: They only get two million of the ten 'cause they're using the grant -- Commissioner Sarnoff They're using this as leverage to get a loan. Mr. Bloom: -- primarily to pay back their -- Commissioner Sarnoff Right, okay. Mr. Bloom: Right. Commissioner Sarnoff So in theory, the most we could ever be out would be two million -- Mr. Bloom: Correct. Commissioner Sarnoff -- because the building would be built. Mr. Bloom: Correct. Commissioner Sarnoff Do we take a mortgage of any kind? Mr. Bloom: No, and neither are the lenders in this case. The money is coming from the grants -- you know, from other state and federal grants, from pledges, from the new market tax credits. City of Miami Page 4 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Commissioner Sarnoff Okay. Mr. Bloom: And so really no one's taking a mortgage on the facility itself. Again, the agreement is really designed, you know, to achieve the goals of the community, to help Camillus House relocate to a new state-of-the-art facility and to help the CRA reduce the slum and blight in the redevelopment area by closing the existing facility, which has been an impediment to growth in that area for the last 30 years. Commissioner Sarnoff Is that part of this agreement, that the facility will close? Mr. Bloom: Yes. They can't get the last $8 million until the facility is completed and the existing facility closed. Commissioner Sarnoff What's the word you used, closed? Mr. Bloom: It's got to be permanently closed. There's a deed restriction, and it has to be demolished within 120 days of completion of the new facility. Now half the property is owned by Charities Unlimited. The other half of the property is leased by Brothers of the Good Shepherd. Brothers of the Good Shepherd need their consent of their landlord. It's under a 99-year lease. It's got maybe 40 years left. They'll ask their landlord to demolish. If the landlord won't approve, at least the -- one half of the facility will be demolished. But Camillus House is committed and as long as that leasehold interest is in place that it cannot be operated as a food distribution facility or a shelter. Commissioner Sarnoff All right. Maybe I kind of lost your last two sentences, 'cause I thought it had to be demolished -- Mr. Bloom: It has to be -- Commissioner Sarnoff -- and then I heard you say or it cannot -- Mr. Bloom: The reason -- again, half of it is owned in fee simple. They're going to demolish that. The other half is subject to a 99-year lease. As the tenant under a 99-year lease, they can't demolish the improvements without the -- Commissioner Sarnoff.- What half is on the 99-year lease? Mr. Bloom: It's the -- Mr. Villacorta: South half. Commissioner Sarnoff South half? Mr. Bloom: -- half that borders on 8th Street. Paul Ahr: It's the office building portion. All the food preparation and the residential (UNINTELLIGIBLE). Commissioner Sarnoff Okay, so those are capable of being demolished. Okay. Mr. Bloom: And again, there is a covenant by Camillus House and all its affiliated companies not to -- once the new facility is completed, not to operate a homeless shelter or a food distribution service within the redevelopment area, other than at the new facility. City of Miami Page 5 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Commissioner Sarnoff Other than -- Mr. Bloom: At the new facility they're constructing. Commissioner Sarnoff Okay. Mr. Bloom: I mean, Camillus House has worked very hard to live with the requirements of the CRA so that in the end they achieve our goal of getting the new facility built and closing the old facility and not replacing the old facility with another facility in the immediate area. Commissioner Sarnoff: Okay. Do you have any idea when they break ground if this gets approved? Mr. Bloom: They're pretty much ready to break ground now. I think they're starting some -- Commissioner Gort: They're ready to go. Mr. Ahr: (UNINTELLIGIBLE) waiting on a construction loan, probably in the middle of (UNINTELLIGIBLE). Mr. Villacorta: And state your name. Chair Dunn: State your name and -- Mr. Ahr: Paul Ahr, president of Camillus, doing business at 336 Northwest 5th Street. We're just waiting on the construction loan. As you all know, this is a critical component to that. We have already begun on the tax credit portion. And depending on the availability of the construction loan, we can start as soon as that's authorized Commissioner Sarnoff Okay. And when do you anticipate that? Mr. Ahr: It's up to the banks. We're shooting still August or September depending on -- we have a hurdle we have to get past. The County has to basically sign off on this, which probably pushes it to -- try to get that done before they go on recess, so that we would be available in August and September. Commissioner Sarnoff How can you tell when they're in recess? Mr. Bloom: The hurdle that Dr. Ahr is referring to is that the banks require the commitment for the entire $10 million, and right now the grant would be subject to the County's approval on an annual basis of that fund, and the idea would be to go to the County to not only approve this grant so we don't have to come back every year to have it approved, but also the money for Gibson Park. That's not their issue. That's your issue. Commissioner Sarnoff.- They have to approve each one of those -- Mr. Bloom: Each -- Commissioner Sarnoff -- annually? Mr. Bloom: -- it's part of the -- exactly. And so, you know, the CRA and the City need that for Gibson Park and to sort of accomplish both at the same time. Commissioner Sarnoff I guess they're going to have to hire good lobbyists. City of Miami Page 6 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 2. 10-00622 Mr. Ahr: I just want to make one other point. Not only are we going to terminate the food distribution at that location, but one of the -- what are called the HAC (Homeless Assistance Center) rules that we have agreed to long before this process got started was there would be no feeding of people who reside on the street when we move to the new location. So the people that we will feed are basically going to be people who are residing with us either in a courtyard type arrangement and treatment or in the permanent housing. Chair Dunn: Commissioner Gort. Thank you. Commissioner Gort. Commissioner Gort: Commissioner -- Chairman Sarnoff, I know you been dealing with this for a while. I've been dealing with this I think for the last 15 years, and we're finally going to get it approved. And although it's within your district, it benefits my district. It benefits the whole City of Miami. I think you're going to see a corridor with the University of Miami with this new building and this -- if you look at the plans that they have put together, the architecture, it's going to be beautiful. That is going to create the development that needs to be taking place within Overtown and I'm all for it. Vice Chair Suarez: Mr. Chairman, ifI may. Chair Dunn: Vice Chairman Suarez. Vice Chair Suarez: First of all, not only do I like the contract, I like the executive summary. Congratulations. I wish we could have executive summaries like this with some of our contracts because this was very elegantly put together and summarizing a 17 page document and hitting all the high points. And I think the contract is excellent. I think it balances obviously the, you know, large grant that we're giving and the large expenditure with a lot of additional conditions that are important to the CRA and obviously to the City of Miami. I'm -- I've always been completely in favor of this project so that's all I have to say about that. Chair Dunn: Okay. Any other questions or comments? Commissioner Gort: Nope. Chair Dunn: We're going to close this portion. We have a motion by Commissioner Sarnoff, seconded by Vice Chair Suarez. All in favor, let us hear by saying bye." The Commissioners (Collectively): Aye. Chair Dunn: Ayes have it. So moved. I believe the last -- Commissioner Gort: Get going. Applause. Mr. Villacorta: I'd just like to take a minute, ifI may, to thank the CRA staff that I know put in a lot of long hours working with special counsel and Camillus House as well as their staff to get this agreement drafted and get it out on a very expeditious basis. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF A GRANT, IN AN AMOUNT NOT City of Miami Page 7 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 TO EXCEED $50,000, TO THE PEPPER SHAKER COMPANY, INC., FOR ITS CINE LAB YOUNG FILMMAKERS WORKSHOP; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL; ALLOCATING FUNDING FROM SEOPW TAX INCREMENT FUND, "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File # 10-00622 Cover Memo 05-13-2010.pdf File # 10-00622 Financials 05-13-2010.pdf File # 10-00622 Backup 05-13-2010.pdf File # 10-00622 Backup (2) 05-13-2010.pdf File # 10-00622 Backup (3) 05-13-2010.pdf File # 10-00622 Legislation 05-13-2010.pdf Motion by Board Member Suarez, seconded by Board Member Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Chair Dunn II, Commissioner Sarnoff, Commissioner Gort, Commissioner Carollo and Vice Chair Suarez CRA-R-1 0-0041 James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Item number 2 on the supplemental agenda is a resolution of the Southeast Overtown/Park West Community Redevelopment Agency authorizing the issuance of a grant, in an amount not to exceed $50, 000, to the Pepper Shaker Company, Inc. for its Cine Lab Young Filmmaker's Workshop; authorizing the executive director to disburse funds at his discretion on a reimbursement basis or directly to vendors upon presentation of invoices and satisfactory documentation; further authorizing the director to execute all documents necessary for said purpose. This is a summer program that'll take 25 young people and teach them filmmaking at the hands of participants in the American Black Film Festival. While they won't be paid, at the end of the month -long course, they will produce a film that will be shown at the American Black Film Festival, and they will receive a computer with filmmaking software. Vice Chair Suarez: So moved. Commissioner Gort: Second. Chair Dunn: Motion -- okay, motion by Vice Chairman Suarez, seconded by Commissioner Gort. Any comments? Commissioner Gort: (UNINTELLIGIBLE) I appreciate that you're going into the film industry. The state of Florida just approved a -- I think it was $280 million of tax credit to -- Commissioner Sarnoff. Fifty-two -- two fifty-two, you're right. Commissioner Gort: -- 252 to help the film industry to establish themself [sic] in here. So this will be a great opportunity for anyone that wants to establish the film industry within the certain areas in the City of Miami. There's funds in there to be applied for, and that's an industry which I think we need to go into. Mr. Villacorta: Yes. Doug Bruce, our -- we have a consultant. He's assisted us with trying to City of Miami Page 8 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 NON -AGENDA ITEMS NA.1 10-00644 obtain state funds, and he assisted in getting that measure passed as well. Commissioner Gort: Okay. Chair Dunn: We had a motion by Vice Chairman Suarez, seconded by Commissioner Gort. All in favor, let us hear by saying aye." The Commissioners (Collectively): Aye. CRA DISCUSSION DISCUSSION REGARDING PAYMENT OF $11,701.25 TO CREATIVE IDEAS ADVERTISING FOR SERVICES RENDERED. DISCUSSED Direction by Commissioner Carollo to the Executive Director of the CRA to make a payment in the amount of $11, 701.25 to Creative Ideas Advertising for services rendered and to bring back a report on this matter by the next SEOPW CRA Meeting to address the remaining balance. Chair Dunn: Before we adjourn, we're going to open up the floor for public hearing. Maritza Gutierrez: Good evening, Commissioners. My name is Maritza Gutierrez, and I am a businesswoman, owner of Creative Ideas Advertising. And my business address is right here in Miami, Florida, 3175 Southwest 8th Street. I also represent the interest of my partner, Ed O'Dell, who won this award with us back in 2007. I'm here before you because there is no other recourse other than to come before you, the board of the CRA (Community Redevelopment Agency). This is a very sad day for small businesses, for minority businesses when the only way that they can get paid is to come before the policymaker, the board because there's issues with the executive director. I'm not going to say that since this contract was awarded to us in April of 2007, okay, dated May 14, 2007, this has been a walk in the park. It has never been a walk in the park dealing with the executive director. It has been tenuous and at some time very strenuous. We have a situation where we have over $46,000 in outstanding invoices from the CRA. We're a small business. We conducted -- we did the work and we have not been paid. We appeal before you 'cause all we want is to get paid for the work we did. That's all we're asking. I'm going to take you back in time and show you and demonstrate what the scenario is and the situation that we have. Once we were awarded the contract, we were immediately asked to take part in an event, a major undertaking event that's called "This Joint is Jumping," for Overtown. It took over 200 hours of our team to work at this event. It was a press conference. It was a public concert and a private evening event. George Duke was invited, Kirk Wayland, Melton (UNINTELLIGIBLE), jazz legends. It was a major event, a major undertaking and over 200 hours work. At no such time were we told during the process of our work that we would not get paid, that we were working for free. We were not told anything, and we did have a contract. We had been awarded the contract. We did the work. The work was done for the CRA of Miami, for the Parks Department, and also Blue Cross and Blue Shield was involved. Parks Department paid for all the media time that was expended. That was their end of the proposal. Blue Cross and Blue Shield paid for all the out-of-pocket expenses of the event for the evening. Mr. Villacorta would say that CRA had nothing to do with it and he doesn't recall and he didn't approve it, but he knew how to pose for the newspaper. He's here having cocktails -- Commissioner Sarnof Can I see that? Ms. Gutierrez: -- with the former mayor of the City of Miami. There's over 200 hours City of Miami Page 9 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 expended here. That's $19, 000 and change that we are still waiting to get paid, and he's shutting the door. We have a contract. We were awarded the contract. We submitted a proposal. He never declined it. The proposal was clear as to the work that was going to be done and was clear on who was paying for what. It said as clear as day that the CRA would pay for our services, the public relations services for doing the work, the undertaking. Only after the fact when we did the work did he then appear before us and told us that he was not going to pay, that that was our problem with the Commissioner, our problem with the Commissioner. Why did we send him a proposal? Why did he not decline it? Why did he not tell us in writing that, no, he was not going to pay? But after the fact, after the services were performed then we're not going to pay. We've been trying -- Commissioner Sarnoff Wait, wait, wait. You didn't -- Ms. Gutierrez: -- since 2007 -- Commissioner Sarnoff. -- you did not have that proposal signed? Ms. Gutierrez: He did not return anything back to us. Commissioner Sarnoff And you put a proposal, you then show up to do this work. I heard something about a Commissioner. What Commissioner? Ms. Gutierrez: Michelle Spence -Jones was part -- Commissioner Sarnoff What did she tell you? Ms. Gutierrez: -- of this -- Excuse me? Commissioner Sarnoff I'm not aware of a Commissioner having any authority -- Ms. Gutierrez: I never said anything that the authority -- Commissioner Sarnoff Well, I need to know -- Ms. Gutierrez: -- that the Commissioner -- Commissioner Sarnoff -- why you reacted to a Commissioner doing something. Ms. Gutierrez: No. I didn't react to a Commissioner. This was something that Michelle Spence -Jones was totally involved with the CRA. I just pointed out all the three parties, all the three entities that were involved. We were called to the table by Villacorta, and the meetings were held at the press conference in the 10,000 square feet offices over at the CRA. All meetings were held there with all the parties, and we were fully engaged with the people of the CRA and assigned people that we were working at the CRA. Commissioner Sarnoff But -- Ms. Gutierrez: Evelyn, Hilda -- Commissioner Sarnoff -- so let -- but let me under -- Ms. Gutierrez: -- many CRA staff members. Commissioner Sarnoff -- but let me just understand something, Ms. Gutierrez. You send a City of Miami Page 10 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 proposal, it is not signed, it is not returned to you, but you commence doing the work? Ms. Gutierrez: Right. We were called -- Commissioner Sarnoff.- By whom? Ms. Gutierrez: -- to the table by Villacorta to come to a meeting to handle this job, and everybody was there at the meeting, everybody from CRA to Michelle Spence staff, to the people of BET (Black Entertainment Television). We showed up to the table not because we just miraculously appeared; because we were called to task to do this job. Given that we had won the award, we didn't see this to be a problem, so we showed up to take charge of the event and we did all the work. We got a call in June -- the event was in June -- by Mr. Villacorta -- Ed O'Dell, myself and Villacorta on the phone -- and he asked us, I need to know exactly everything that's going on. I need a proposal. Please send it to us. And we did at that time send it. Nowhere did at that moment in time did he even say or did not know, because we had already been called to task to do the work, that there was going to be no signature, that there was going to be no work. We didn't know that this situation was going to run amuck and that he had intention of never paying us. Remember, here we won an award, have a contract, and we were called to the table to do the work. We've now done the work, now we have this problem. Knowing now the situation that we have and it is August of 2007, the work continues. We continue to provide proposals. At which time proposals are not being signed, but this time we know better. We know better that a call, a conversation is not good enough because if you don't have a signature, you may never get paid. We now obtain signatures. Mind you, let me tell you how difficult it was to obtain signatures. Lots of proposals e-mailed (electronic), sent, meetings, ongoing working, no proposal was ever signed until April of 2008. Yet, we were providing proposals since August of 2007. Commissioner Sarnoff.- So are we talking about two separate RFPs (Requests for Proposals)? Ms. Gutierrez: So now we're talking about -- no. We're talking about one RFP. Commissioner Sarnoff.- Well -- Ms. Gutierrez: We're now talking about the scenario of everything that has transpired through the course of the contract because -- Commissioner Sarnoff.- So you win something in June of '07, right? Ms. Gutierrez: We've been -- we performed services for an event of June of 2007. Commissioner Sarnoff.- I take it -- but I take it there was an RFP issued and a number of people responded -- Ms. Gutierrez: That was way before. The RFP was way before. That's why we won an award. Commissioner Sarnoff.- Just give me the date of the RFP. Ms. Gutierrez: Who knows the date of the RFP, but we were awarded in April and May of 2007. Who knows the date that it was responded and then came back? Commissioner Sarnoff.- Well, help me with this because I'm not getting something. I take it the Southeast Overtown/Park West issues an RFP and you respond to it. Ms. Gutierrez: Correct. City of Miami Page 11 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Commissioner Sarnof And you're the winner of that. Ms. Gutierrez: Correct. Commissioner Sarnof But you don't remember what year that was? Ms. Gutierrez: That was the year of 2007, sir. Commissioner Sarnof Right. And you know approximately when that --? Ms. Gutierrez: We were awarded the contract in 2007 -- of April of 2007. Commissioner Sarnof All right, so April of 2007, and you do work, I think you said, June through August of 2007. Ms. Gutierrez: Correct. Commissioner Sarnoff. Okay. Yet -- Ms. Gutierrez: We have a contract. Let me walk back -- if you want some timetable as to this. We didn't receive the contract to sign -- and I will tell you when. We received the first memorandum to sign the contract on June 18. We then resubmitted that and got it back -- Commissioner Sarnofff Of '07, right? Ms. Gutierrez: Of 2007. Commissioner Sarnofff Okay. Ms. Gutierrez: We got it back again from the CRA, Villacorta -- have originals right here with me, on July 18, 2007. Commissioner Sarnofff Okay. Ms. Gutierrez: We were working under a contract. We knew we had won the award. If we're called to task by the executive director and all parties engaged, why should we think that there is a problem? It is understood -- Commissioner Sarnoff. Did you win an RFP or an RFQ (Request for Qualifications)? Ms. Gutierrez: The executive director is here. Why don't you ask him? Commissioner Sarnoff. Did you win an RFP or an RFQ? James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): There was an RFP. There were two -- Commissioner Sarnofff Okay. That's -- Mr. Villacorta: -- respondents. Commissioner Sarnofff Right. The RFP is going to mean that there were -- City of Miami Page 12 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Mr. Villacorta: The other one was nonresponsive, yes. Commissioner Sarnoff.- -- that -- correct me, Jim, but the RFP is going to have her hourly rates and things like that, right? Mr. Villacorta: Yeah. The contract provides hourly rates, yes. Commissioner Sarnoff. Okay. Mr. Villacorta: The con -- Chair Dunn: I wanted to just kind of hear from Mr. Villacorta -- Mr. Villacorta: Sure. Chair Dunn: -- and then kind of follow -- Mr. Villacorta: One of the delays in signing the contract was that Creative Ideas refused to provide the insurance requirements that were required under the RFP, particularly nonhired autos. There was months of going back and forth. An exact quote is "why should I have to provide this insurance?" I said because on the particular page of the RFP requiring this insurance, you were required to initial and you did initial. This is a material part of the RFP. That was a large delay in getting the contract. This has been a very dcult contract from start to finish. The owner of Creative Ideas was repeatedly advised, do not get out in front of this contract. Do not do work before you have a contract. The prior District 5 Commissioner worked very closely with the owner of Creative Ideas, but she was made aware that that Commissioner is not authorized to have you incur expenses under this contract. The contract specifically states that prior to performing work under the agreement, you'll submit a proposal detailing the work, and the executive director will sign off on the proposal prior to your commencing work. You are not authorized just to run out at the will of the District 5 Commissioner or someone else who says I need a press release, I need whatever. You have to do a proposal, we approve the proposal, we sign off on it. It's been a tremendously difficult contract. The contract provides a maximum of $50, 000. We have received mysterious invoices, is what I would have to say, for huge amounts of money not authorized by this contract -- Ms. Gutierrez: If I may -- Mr. Villacorta: -- as recently as May 4. We just got the Web site up and working that has been since 2007 a task to be undertaken under this contract. We'll be happy to repair -- rather than hash this out for hours, we'll be happy to repair -- prepare a report on this contract documenting the e-mails, documenting the correspondence going back and forth for the Commissioners and let you decide. Ms. Gutierrez: If I may, Commissioners, and my -- Chair Dunn: And then well hear a comment -- Ms. Gutierrez: -- finish my presentation. Chair Dunn: -- yes, and then we'll hear comments from -- Ms. Gutierrez: The key of the situation is even after we got proposals signed, there are still invoices that are pending. Even after proposals are signed, and there's an estimated amount -- invoices amounting to over $20, 000 are still outstanding. So it's very easy to say today to you City of Miami Page 13 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 all here, yeah, it was a terrible relationship. It was, from day one. Commissioner Sarnoff.- Have you been paid anything on this? Ms. Gutierrez: I've been paid some, but not all, and there's -- Commissioner Sarnoff.- What have you been paid? Ms. Gutierrez: -- over $46, 000 that is pending -- Commissioner Sarnoff.- What have you been --? Ms. Gutierrez: -- of which 19,000 is separated and has to do with Joint is Jumping. The difference has to do with Web site, public relations initiatives, media tour that was done in 2008, and we're still waiting to get paid. Commissioner Sarnoff All right. Could I just ask a couple questions? Chair Dunn: Sure. Commissioner Sarnoff What have you been paid? Ms. Gutierrez: We've been paid for a newsletter. We've been paid for the logo. We've been paid for some banner designs. We were paid for a press kit that was done and then everything else we're waiting. Commissioner Sarnoff.- What amount of money have you been paid? Ms. Gutierrez: Very little compared to everything that was done because we worked based on proposals -- Commissioner Sarnoff- I'm going to ask one more time. Ms. Gutierrez: I think the question is we worked based on proposals and I -- Commissioner Sarnoff- Ms. Gutierrez. Ms. Gutierrez: -- could tell you -- Commissioner Sarnoff- I'm going to ask you -- Ms. Gutierrez: Let me -- ifI may, Commissioner. Maybe I can address this a little easier. Each job that we did for the CRA was based on a proposal based on an estimated amount. I can tell you we did a proposal for a series of branding issues that was 25,000. There's 11,000 waiting to get paid on that. There's another issue for the newsletter. A total of 6,000 was paid on that. Press releases and banners -- Commissioner Sarnoff- What's pending on that? Ms. Gutierrez: On the newsletters -- Commissioner Sarnoff- Six thou -- in other words, the newsletter, what's pending? Ms. Gutierrez: -- nothing is pending on -- City of Miami Page 14 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Commissioner Sarnof Okay. Ms. Gutierrez: -- that. That was paid; 6,000 was paid on that. Press releases and banner, a total of 3,000 -- $2,900 was paid on that. Commissioner Sarnoff.- What's pending on that? Ms. Gutierrez: That's been satisfied. Commissioner Sarnoff.- Satisfied. Ms. Gutierrez: That's been satisfied. Commissioner Sarnoff.- Okay. Ms. Gutierrez: Public relations initiatives, we did several jobs, one of 1, 700. That's been paid. Another job of 3,000; that's still waiting to get paid. We did another job of a media tour in 2008 with a signed proposal. We're still waiting to get paid. That's $8,500. And everything else that I was addressing at the beginning that has to do with The Joint is Jumping, that's a total of 19, 000. It's easy to say not to get ahead of someone, but when you have a contract, then you don't think you're getting ahead. It's easy to say now, hey, we had issues. I know we had issues, but it's not easy to work with someone that knows how to meander, and we've -- it's very difficult to work with someone like that when all information is not given to you to be able to address the information, okay. We have been trying to resolve the issues. We want to get paid. We don't want to be working for the CRA of Miami. We want what is just and due to us for the work that we did, and that is the only fair and just thing. We have had five meetings set, even at one time with my attorney. Mr. Villacorta has never shown up. It has been a very difficult situation. Chair Dunn: Okay. I'm going to ask you -- Ms. Gutierrez: And in closing -- Chair Dunn: Yeah, I'm going to ask you to wrap -- Thank you. Ms. Gutierrez: -- the insurance. I had insurance. Didn't think I had to change it from Geico to AllState, but I did. It didn't matter because we have a contract and we're still owed money. I really appreciate your time, your patience. All we're trying to do is trying to get this resolved in an easy, auricle [sic] way. We need to get paid. We're a small business. We're minorities, and we've been abused. Thank you. Chair Dunn: Thank you, Ms. Gutierrez. To my fellow Commissioners, what is your pleasure in trying to resolve this amicably and fairly? I'm open. Vice Chair Suarez: Mr. Chairman, ifI may. Chair Dunn: Yes, Vice Chairman Suarez. Vice Chair Suarez: I think, you know, this was a discussion item that you requested some information on and Ms. Gutierrez came, briefly met with me and gave me some invoices, and I asked her if she could send me a copy of the contract. So I think there -- obviously, there's a lot going on here. This has been going on for multiple years, so I think we need to get more information from all sides and see what -- you know, where everything stands and see if maybe City of Miami Page 15 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 there's some way that this can be worked out. Chair Dunn: Yes, Commissioner Gort. Commissioner Gort: I'm not a lawyer, but I took business law, and I remember some of this. Now my understanding the staff is saying that they didn't agree but payments were made. And I think if payment was made, it's the recognition that service have been provided. Commissioner Carollo: Mr. Chairman. Chair Dunn: Yes, Commissioner Carollo. Commissioner Carollo: I think that it appears that services have been provided. I have not seen a contract, but apparently there was a contract. Services have been provided, and you know, it is a small business. So I mean, I don't see why she shouldn't be paid, unless something -- you know, the executive director could show something, you know, otherwise, you know, a strong argument why she shouldn't be paid. I mean, ser -- it appears like services were provided. And ifI recall correctly, not too long ago, a contract that was over -- and I'm going on memory -- a million dollars that was not approved by us and so forth. However, the furniture was already given, delivered, and the argument that was used there was, hey, listen, you know, we don't want to be unfairly, you know, enriched. Therefore, we should, you know, pay the money. And it seems like here we may have something similar. I'm not saying it's the same, but it's similar. I mean, it seems like we were unfairly enriched because, you know, maybe it's not something that's tangible, but it was public relations and so forth. So maybe unless the executive director could, you know, show us something, you know, very solid why not to pay -- and at the same time, what is the purpose of the CRA? It seems to me that it is -- and this argument has been, you know, made many, many times to a Commissioner that does not have a CRA in his district. Listen, the purpose of the CRA is to help the small business, to help, you know, the blighted area and so forth. So I mean, once again, unless, you know, the executive director shows, you know, some strong arguments against, I don't see why, you know, we shouldn't go ahead and pay the amount. Mr. Villacorta: IfI might. Since the Web site was finished on May 4, we can agree that there is a small amount owed on the Web site and the money for the media tour, which is $11, 701.25. We can move to cut that check immediately. And let us prepare a report for the Commissioners so that you can be fully informed on this matter. We have banker's boxes full of correspondence on this. We can have that check cut, and we can present to you a letter report. Vice Chair Suarez: Mr. Chairman, ifI may. Just to -- Chair Dunn: Vice Chair. Vice Chair Suarez: -- clam, Mr. Villacorta, what you're saying is we'll immediately pay her $11, 700 -- Mr. Villacorta: Seven hundred one dollars and twenty-four cents. Vice Chair Suarez: So that will -- we'll get that out of the equation -- Mr. Villacorta: Yes. Vice Chair Suarez: -- and then -- you know, and then -- Mr. Villacorta: Right. Currently -- City of Miami Page 16 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Vice Chair Suarez: Okay. Mr. Villacorta: -- she's received $30, 700 -- Vice Chair Suarez: Okay. Mr. Villacorta: -- $30,873.75 under this contract. We can immediately cut the check for the balance now that the Web site has been done and prepare a report to you. And if you desire to pay additional funds, that would be up to the board. Vice Chair Suarez: And just for clarity, I don't think -- and I think you would want to know this, Ms. Gutierrez -- this is a settlement in any way, shape, or form of -- Mr. Villacorta: No, no. Vice Chair Suarez: -- the amounts that you claim are owed. This is just a recognition by the CRA that you're owed this and they're going to pay you this immediately, and then the rest I guess will remain in dispute. Mr. Villacorta: Yes. Ms. Gutierrez: Right. That's the point of clarification that I wanted to make -- Vice Chair Suarez: Okay. Ms. Gutierrez: -- accepting the 11,000 is not a waiver of any time -- Vice Chair Suarez: Right. Ms. Gutierrez: -- of all that -- Mr. Villacorta: Yeah. No, we would not -- Ms. Gutierrez: -- has been done. Mr. Villacorta: -- expect that to be a waiver. Ms. Gutierrez: And also, the 11,000 is not even covering everything that is pending on the Web site -- Chair Dunn: Understood. Ms. Gutierrez: -- because -- Chair Dunn: Understood. Ms. Gutierrez: Okay. Chair Dunn: Is there a motion to that effect? Mr. Villacorta: Or just direction. Commissioner Carollo: I have a question. What -- you said the Web site has been completed City of Miami Page 17 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 and if I hear Ms. Gutierrez correctly, it's -- the 11,000 does not cover the whole Web site. What does cover -- what amount does cover the Web site, out of curiosity? Ms. Gutierrez: Apparently, the 11,000, Commissioner, the way he's coming up with that tally is 8,500 of a media tour of 2008, and then he's picking up some invoices to make up the difference for the Web site. But the Web site outstanding invoices is currently $11,000. And the reason why it's $11,000 is because more work was done with the Web site that was not anticipated, but was required. When we were showing the Web site to the CRA staff, additional items were requested so that occurred [sic] additional invoices, so that tally is 11,000. He's only adding about 4,000 of that. He's not picking up the entire tally for it. Vice Chair Suarez: Ms. Gutierrez -- Mr. Chairman, may I? Chair Dunn: You certainly may, Vice Chairman Suarez. Vice Chair Suarez: So -- because I think there may be a little confusion here. Didn't you just say you were going to cut her a check for 11,700 -- Mr. Villacorta: Yeah. Vice Chair Suarez: -- something? Mr. Villacorta: Yes. In the proposal that was given, it was for corporate brand, a Web site, a logo, and brand materials. The Web site was bundled into that -- Vice Chair Suarez: But -- Mr. Villacorta: -- proposal. That proposal totaled $25, 000; 12,500 has been -- between each CRA, a large portion of that has been paid already. You have to go item by item through these to -- Vice Chair Suarez: Well -- Mr. Villacorta: -- allocate them against the specific proposal that came in. The -- her problems with the Web site -- I mean, this is legion -- this is quite a bit of information. It was written in the wrong language. We have the e-mails saying you need to get with IT (Information Technology) before you even start on this. It was written in PL/P (Programming Language for Prime). It should have been HTML (HyperText Markup Language). They submitted something Ms. Gutierrez: I'm so happy that today he has chosen not to have amnesia. It's very important not to have selected amnesia of convenience. Mr. Villacorta: We keep all documents and e-mails -- Ms. Gutierrez: That happened in 2007 -- Chair Dunn: Can we --? Ms. Gutierrez: -- and today we don't have amnesia. Chair Dunn: Can we agree --? Vice Chair Suarez: But -- City of Miami Page 18 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Ms. Gutierrez: The Web site has been running since Good Friday and yet, there's been -- it's been in the hands of IT, and the Web site has actually been ready since August of 2009, but was never given to IT or any efforts were actually made to make sure that it got to IT so they could actually install. We were not commissioned to install the Web site. We cannot install your Web site. You have an IT Department has worked vigorously to get it up and running -- Vice Chair Suarez: But -- Chair Dunn: Ms. Gutierrez -- Ms. Gutierrez: -- which is out of our way. Chair Dunn: -- let me kind of yield 'cause I think we have a -- may have a possible solution, at least for today -- Vice Chair Suarez: Yeah. Chair Dunn: -- or this evening and then we can proceed with the rest of the dispute. Vice Chair Suarez: Ms. Gutierrez, you gave me before the meeting a schedule, and it indicates on the schedule that you gave me that just for Web site, just from what I can see -- and maybe I'm misinterpreting the schedule -- Mr. Villacorta: Yes. Vice Chair Suarez: -- but it makes it seem like just for Web site, there's three outstanding invoices. Ms. Gutierrez: Correct. Vice Chair Suarez: One of them is for 2,700 and another one is for 6,725 and another one is for 2,100. That totals 11,525. Ms. Gutierrez: Correct. Vice Chair Suarez: And I think the executive director is saying -- I just want to make sure that we're not confusing it because maybe we're getting a little confused here. Mr. Executive Director, Ms. Gutierrez handed me a schedule that said there was three outstanding invoices for Web site -related work. One of them was for 2,700, another one for 6,725, and another one's for 2,100, a total of 11,525. You're saying that -- basically, you're willing to cut her a check for $11,700? Mr. Villacorta: Yeah. You have to remember that the proposal was not for the Web site alone. It included corporate branding, logos, brand materials. Some of those items were paid; some were withheld This is a long, complicated, convoluted series of issues involved here. We'll be happy to put this -- I can cut her a check today for $11, 701.25 without her agreeing that's the final amount owed. We will prepare a report for you. We will document what we are telling you with e-mails, with written communications, with letters. There is no way this contract should go over 50 -- Vice Chair Suarez: Okay. Mr. Villacorta: -- and not all of the 50 to our mind is earned. City of Miami Page 19 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Vice Chair Suarez: I don't mean to sound like a judge in the People's Court, but -- Mr. Villacorta: Yeah, I understand. Vice Chair Suarez: -- it seems to me that where we could go from here today is cutting the check for 11,700. She's not waiving any rights to dispute -- Mr. Villacorta: Exactly. Vice Chair Suarez: -- any additional monies that you may be owed. You're not disputing -- you know, you're not waiving any of your rights to dispute any additional monies, but at least I think we get somewhere. Mr. Villacorta: Exactly. Vice Chair Suarez: You know, and -- Mr. Villacorta: I think that would move us forward. We'd be happy to meet with her again. Vice Chair Suarez: It's nice to get somewhere. Chair Dunn: Is there a --? Ms. Gutierrez: If we can get some type of a timeframe of when we can expect that money because we're always told that we're going to get it and we've been waiting. Chair Dunn: Can we ask that by the -- Ms. Gutierrez: Is there any sort of a timeframe --? Chair Dunn: -- next meeting, we come up with some type of resolution --? Mr. Villacorta: We will contact the City's Finance Department who handles CRA funds and ask them to expedite the check. If -- do we have wire transfer information? Chair Dunn: I'm not talking about -- we -- I think we're clear on the check. Mr. Villacorta: Oh, the -- Chair Dunn: I'm talking about -- Mr. Villacorta: -- report by the next meeting, of course. Chair Dunn: Okay, okay. Can we have a motion that we'll address that --? Vice Chair Suarez: Do we have to move that? Mr. Villacorta: No. Just direct -- Vice Chair Suarez: Okay. Mr. Villacorta: -- me to -- City of Miami Page 20 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Vice Chair Suarez: Okay. Chair Dunn: You understand what I'm saying? Vice Chair Suarez: Yeah, yeah. Chair Dunn: Okay, okay. Commissioner Sarnoff. I have a question. Vice Chair Suarez: Does that --? I was just going to ask is that -- Chair Dunn: By the next -- Vice Chair Suarez: I mean, obviously, it doesn't satisfy you because -- Ms. Gutierrez: That means, what -- Chair Dunn: -- CRA -- Ms. Gutierrez: -- in the next 10 days, in the next 15 days --? Vice Chair Suarez: Right. Chair Dunn: It'll be in the next -- about what, another 30 days from now? The next CR -- when is the next CRA? Ms. Gutierrez: And then we'll come back and address it. Mr. Villacorta: By the end of June -- the last Monday in June. Ms. Gutierrez: What I would like and I don't appreciate, I did say working with Villacorta was a weave, a web that he rehashes things that are totally irrelevant at this moment in time because he wants to cast a spell and a case on something that currently is irrelevant. There is monies outstanding and those need to be paid, and things have been said and still the work was done and invoices are still outstanding. We did not work for Michelle Spence -Jones. Michelle Spence -Jones was part of The Joint is Jumping. We worked for the CRA, and we were extremely mindful that the CRA was completely in the loop of everything. We have everything signed, but payments are still pending, so thank you. Chair Dunn: Okay. Is there a motion to --? Commissioner Sarnoff: That's it. You don't need a vote. Commissioner Carollo: You don't need a motion. Just if we -- Mr. Villacorta: A direction to the executive director to bring back a report and make the payment of -- Commissioner Sarnoff. Jim, I have a question. It's $11,000. Do you concede that that's owed? Mr. Villacorta: Yes. Commissioner Sarnoff. Okay. City of Miami Page 21 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 Mr. Villacorta: As of May 4 when we got the frame for the Web site completed. Commissioner Sarnoff Okay. Mr. Villacorta: And IT signed off. Commissioner Sarnoff Okay. Commissioner Carollo: Right, so let's direct -- and again, Mr. Chair, I'm -- you know, I'll yield to you, but I think then we should direct the executive director to pay the 11,700 whatever, whatever -- Mr. Villacorta: One dollars and twenty-five cents. Vice Chair Suarez: I agree. Commissioner Carollo: Exactly, and then come back to us at the next meeting with a full report, and we could address it then -- Mr. Villacorta: Thank you. Commissioner Carollo: -- the remainder. Chair Dunn: And also give Ms. Gutierrez an opportunity to bring her -- Vice Chair Suarez: Of course. Mr. Villacorta: We will -- Chair Dunn: -- evidence. Mr. Villacorta: -- meet with her again -- Chair Dunn: Yeah. Mr. Villacorta: -- as we have in the past. Chair Dunn: Is there a motion? Commissioner Sarnoff.- You shouldn't do that by motion. Commissioner Gort: You don't need a motion. Commissioner Sarnoff- You don't need a motion and -- Commissioner Carollo: You don't need a motion. Commissioner Sarnoff- -- you shouldn't do a motion. Chair Dunn: Oh, don't need a motion? Okay. Mr. Villacorta: Just the direction. City of Miami Page 22 Printed on 3/28/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 13, 2010 ADJOURNMENT Chair Dunn: Okay, all right. Mr. Villacorta: Thank you. Chair Dunn: It's done. Is there a motion for adjournment of the Southeast Overtown/Park West Commissioner Carollo: So move. Vice Chair Suarez: Second. Chair Dunn: -- to the Omni? It's been properly motioned. Meeting adjourned. A motion was made by Commissioner Carollo, seconded by Vice Chair Suarez, and was passed unanimously, to adjourn today's SEOPW CRA Meeting. City of Miami Page 23 Printed on 3/28/2011