HomeMy WebLinkAboutSEOPW CRA 2010-09-27 MinutesCity of Miami
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Meeting Minutes
Monday, September 27, 2010
3:00 PM
or thereafter
Miami City Hall
3500 Pan American Drive
Miami, Florida
SEOPW Community Redevelopment Agencies
Richard P. Dunn II, 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 Agencies
Meeting Minutes September 27, 2010
RESOLUTIONS
1.
10-01149
Present: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Vice Chair Suarez and
Commissioner Carollo
On the 27th day of September 2010, the Board of Commissioners of the Southeast
Overtown/Park West Community Redevelopment Agency of the City of Miami met in special
session at Miami City Hall, 3500 Pan Amerian Drive, Miami, Florida. The meeting was called
to order by Chair Sarnoff at 3: 59 p.m. and was adjourned at 4: 20 p.m.
ALSO PRESENT:
Pieter Bockweg, Executive Director, CRA
Clarence Woods, Assistant Executive Director, CRA
Julie O. Bru, General Counsel, CRA
William R. Bloom, Special Counsel, CRA
Priscilla A. Thompson, Clerk of the Board
CRA RESOLUTION
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE
SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT
AGENCY ("CRA"), WITH ATTACHMENTS, APPROVING AND ADOPTING THE
CRA'S AMENDED TAX INCREMENT FUND AND GENERAL OPERATING
BUDGETS FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2009 AND
ENDING SEPTEMBER 30, 2010; DIRECTING THE EXECUTIVE DIRECTOR
TO TRANSMITA COPY OF THE AMENDED BUDGETS TO THE CITY OF
MIAMI AND MIAMI-DADE COUNTY.
File 10-01149 Cover Memo 9-27-2010.pdf
File 10-01149 Legislation 09-27-2010.pdf
Motion by Board Member Sarnoff, seconded by Board Member Gort, that this matter be
ADOPTED WITH MODIFICATIONS PASSED by the following vote.
Votes: Ayes: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and
Vice Chair Suarez
CRA-R-10-0081
Chair Dunn: Madam Clerk, what am I to do now? I'm a little --
Commissioner Sarnoff. I think you can do --
Priscilla A. Thompson (Clerk of the Board): Yeah.
Commissioner Sarnoff. -- CRA (Community Redevelopment Agency) 1.
Chair Dunn: Okay. All right.
Ms. Thompson: So we're going to continue now with Southeast Over --
Chair Sarnoff No. I think he can do CRA 1 on his South --
Ms. Thompson: Right, item 1.
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Chair Dunn: Okay.
Chair Sarnoff Right, and then we'll come back to mine.
Ms. Thompson: Yes.
Chair Dunn: Okay.
Miguel Valentin (Financial Officer, Community Redevelopment Agency): A resolution of the
Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment
Agency, with attachments, approving and adopting the CRA's amended tax increment fund and
general operating budgets for the fiscal year commencing October 1, 2009 and ending
September 30, 2010; directing the executive director to transmit a copy of the amended budgets
to the City of Miami and Miami -Dade County. The City of Miami has now requested the
reimbursement for advances made to the CRA to assist with the CRA's general operating
expenses during the period beginning October 1999 and ending September 2005. The budget for
fiscal year 2010 requires an amendment to account for the requested reimbursement. Also, I
need to make some modifications to the budget that you have in front of you. For the general
operating budget, we need to modift the -- under revenues, other interfund transfers. Instead of
saying 4, 409, 000, it should say 5,271, 317. Under the expenditure category, interfund transfer,
City of Miami, instead of saying 4,409,000, it should say 5,271,317. Then for the Southeast
Overtown/Park West special revenue budget, under the expenditure category, instead -- under
interfund transfer, CRA general fund, instead of saying 4, 409, 000, it should say 5,271, 317.
Chair Dunn: Is there a motion? Okay.
Commissioner Sarnoff.- Can I just take a look at your document?
Chair Dunn: Okay.
Mr. Valentin: Yes, sir.
Commissioner Sarnoff.- Your change. I just want to see something.
Chair Dunn: And Miguel, if you may give all of the Commissioners the opportunity to see --
Commissioner Gort: Make a copy too.
Chair Dunn: Yeah. I know you're seething over there, Mr. Vice Chairman.
Commissioner Carollo: No. Actually, let me not even comment.
Chair Dunn: Okay, is there a motion?
Commissioner Sarnoff. I'll so move, as modified. But I think you might want to wait --
Chair Dunn: Yeah, until they get it for everybody. Oh, here we are. Take a few minutes.
Commissioner Carollo: Mr. Chairman.
Chair Dunn: Yes.
Commissioner Carollo: I have a question. I'm not sure who to ask, either the executive director
or the financial person for the CRA. I -- again, I just received this, you know, an hour and a half
ago or so, and I tried to look over some of this. I haven't, you know -- I have to admit, I find it
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quite confusing, and at the same time, I'm not able to tie your general operating to your
individual CRA revenue expense accounts.
Mr. Valentin: Yeah.
Commissioner Carollo: Why is that?
Mr. Valentin: What happened is in the past, in order to carry out the CRA administration, we are
commingling the funding that we're receiving from both CRAs into one fund. Remember that our
administration is being split out between Omni and Southeast Overtown. The general operating
fund applies to both CRAs. If you go to the revenue section --
Commissioner Carollo: Yeah. Okay.
Mr. Valentin: -- you will see that the last other interfund transfers derived from monies coming
from Midtown, from Overtown, and from Omni. And --
Commissioner Carollo: Okay.
Mr. Valentin: -- well, we have a carryover fund balance from previous years, and there is a
single other interfund transfers. This is the portion that is coming out of Midtown CRA.
Commissioner Carollo: What about the expenditures?
Mr. Valentin: The expenditures -- everything is being commingled, salaries, FICA (Federal
Insurance Contributions Act), health insurance, retirement contribution, everything.
Commissioner Carollo: Listen, it is just very confusing. I -- again, I received this, you know, an
hour and a half ago. I would want to actually, you know, recess and go over some of these
numbers to see what's going on, but at the same time, I understand we have a very long meeting.
I don't want to, you know, jeopardize all the other things that are going on, and I don't know how
my colleagues feel. But you know, again, I -- you know, should I vote for this, I am, once again,
100 percent, you know, counting on management, on your recommendation, your due diligence,
because, like I said, it is confusing. This -- you know, these numbers, the way they're shown, I'm
not tying them.
Chair Dunn: Yes, Commissioner Suarez.
Vice Chair Suarez: Mr. Chairman, I have to echo the Vice Chairman's sentiments completely.
Again, I would like to know in this budget, what is the individualized salary of each employee of
the agency. I don't have that information so --
Mr. Valentin: I'm able to generate that information. Not today, but tomorrow. I'm able to give
you a full disclosure of everything.
Vice Chair Suarez: Right, but we're voting on it now so --
Mr. Valentin: Well --
Vice Chair Suarez: -- that's the problem.
Commissioner Gort: Mr. Chairman.
Chair Dunn: Go ahead, Commissioner Gort.
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Commissioner Gort: The problem that I see is this is the first time this is being done this way.
Before, it used to be divided all the time where you had the line item also, andl think it's kind of
difficult for us to just receive this. And my understanding is what you're doing is all the
administration is coming to one. Before, it used to be two different funds balance or two
different funds to deal with each one of them.
Mr. Valentin: Yeah, exactly. Because --
Mr. Bockweg: IfI may, Miguel. Commissioners, I just wanted to make you aware that the
budget that's before you today is last year's budget.
Mr. Valentin: It was already approved.
Mr. Bockweg: It's not going to the future -- this is not 2010-11 budget. This is '09-2010 budget.
And we were reflecting the amendment due to the items that we just voted on to make sure that
that was what we reflected in our amended budget.
Vice Chair Suarez: I stand corrected. I stand corrected on that, and thank you for explaining
that.
Chair Dunn: Commissioner Gort.
Commissioner Gort: I realize that, but at the same time, you know, many of us were not here last
year, so we want to make sure that we get all the documentation at the same time. I would like to
see a line item budget of all the expenditures, if possible.
Mr. Bockweg: I will make sure to provide --
Commissioner Gort: And I want to make sure that if we pass this today, we're not passing the
line item budgets or contracts and so on. That would have to come back to us, my
understanding.
Mr. Bockweg: I'm sorry. When you say contracts -- the item -- the budget that's before you
today is our operations and what we've done this past year.
Commissioner Gort: Your operational budget, I understand. But in the line item, like you have
the expenses for the -- what do you call them? You got your -- all your regular salary bulked into
one, all the benefits and so on. We don't have a line item of those.
Mr. Bockweg: Well, if -- as far as the salaries are concerned, Commissioner, that our salary as
an operating budget, it states that -- it's regulated under state statute. So what I'm assuming here
is what Miguel has provided you is our actual percentage of operating for each individual CRA,
which is obviously, as you know, capped at 20 percent of the overall budget, and we are well
below at 3 and 2 percent. So I can have Miguel provide you a line item budget as far as each in
particular salary and every -- and all the expenses. That is not a problem.
Vice Chair Suarez: Mr. Chairman --
Commissioner Sarnoff. When --
Vice Chair Suarez: -- ifI may.
Chair Dunn: Commissioner --
Vice Chair Suarez: Thank you.
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Chair Dunn: -- Suarez.
Vice Chair Suarez: I think what we're looking for is -- in this -- this is a budget amendment,
correct?
Mr. Valentin: Yes, sir.
Vice Chair Suarez: Okay. So I think what we're looking for is to have a statement that says since
we haven't had time to review it, that nothing has changed other than this number.
Mr. Bockweg: Commissioner, what is before you, the only numbers that are changed are the
numbers that Miguel put on the record to reflect the actions that you took in item number 2 and
number 3. Everything else is exactly the way it was prior.
Mr. Valentin: If you check -- if you have an opportunity to check the second column, you will see
fiscal year 2010 approved amended budget. That took place, if Pm not mistaken, in July 2010.
And if you see -- if you compare, the only item that has changed is the reimbursement that we're
talking about today.
Chair Dunn: Which is $800, 000 -- to be capped at 800, 000. Am I correct?
Mr. Valentin: Well, the reimbursement to the City from Overtown, it will be 5.2 million.
Chair Dunn: Okay.
Mr. Bockweg: Commissioner, the total being refunded to the City is 5,271,317.
Chair Dunn: Okay, it's been -- Any other questions or comments? It's been motioned by
Chairman Sarnoff, seconded by Commissioner Gort.
Ms. Thompson: I'm sorry.
Chair Dunn: All in favor --
Ms. Thompson: I'm sorry.
Chair Dunn: -- let us hear by --
Ms. Thompson: I just wanted to clarify 'cause I did not hear or register the second. So it is
Commissioner Gort?
Chair Dunn: It is Commissioner --
Commissioner Gort: Yeah, go ahead.
Ms. Thompson: Thank you.
Chair Dunn: That's correct, right? All in favor, let us hear by saying aye."
The Commissioners (Collectively): Aye.
Ms. Thompson: And the record will show that it is adopted as modified.
Chair Dunn: Is there a motion to adjourn the Southeast Overtown/Park West CRA meeting?
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Commissioner Sarnoff. So move.
Commissioner Carollo: So move.
Vice Chair Suarez: Second.
Chair Dunn: Properly motioned and second. All in favor, let us hear by saying aye."
The Commissioners (Collectively): Aye.
Chair Dunn: So moved.
2. CRA RESOLUTION
10-01083
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE
SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT
AGENCY, WITH ATTACHMENT(S), DE -ALLOCATING $6,658,577 IN UNUSED
FUNDS ASSOCIATED WITH PREVIOUSLY AUTHORIZED PROJECTS, AS
MORE SPECIFICALLY SET FORTH IN ATTACHMENT "A."
File # 10-01083 Cover Memo 09-20-2010.pdf
File # 10-01083 Legislation 09-20-2010.pdf
File # 10-01083 Attachment A 09-20-2010.pdf
File # 10-01083 Legislation (2) 09-20-2010.pdf
File 10-01083 Cover Memo 09-27-2010.pdf
Motion by Board Member Sarnoff, seconded by Board Member Suarez, that this matter be
ADOPTED PASSED by the following vote.
Votes: Ayes: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and
Vice Chair Suarez
CRA-R-10-0079
Chair Dunn: Going to officially call the Southeast Overtown/Park West CRA (Community
Redevelopment Agency) meeting to order. And as we did with the Omni CRA, we will follow suit
in terms of resolutions 2 and 3, and then we will deal with the procedure that we've selected for
resolution 1. Mr. Bockweg.
Pieter Bockweg (Executive Director, Community Redevelopment Agency): Commissioner,
resolution number 2 is a resolution of the Board of Commissioners of the Southeast
Overtown/Park West Community Redevelopment Agency, with attachments, de -allocating the
total of $6,658,577 in unused funds associated with previously authorized projects as more
specifically set forth in Attachment A.
Chair Dunn: Is there a motion?
Commissioner Sarnoff. So move.
Chair Dunn: There's a motion by --
Vice Chair Suarez: Second for discussion.
Chair Dunn: -- Commissioner -- Chairman Sarnoff, seconded by Commissioner Suarez.
Commissioner Suarez.
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Vice Chair Suarez: Thank you, Chairman Dunn. Again, I just want to reiterate I got a memo
here in front of me right now at this very moment referencing the legality of the action that we're
taking right now. I haven't had a chance to review it, so I would request that the City Attorney
make a statement on the record regarding the legality of the action that we're about to take.
Julie O. Bru (General Counsel): Commissioner, the memo that was distributed -- and I
apologize. That has to do with the Omni --
Vice Chair Suarez: Okay.
Ms. Bru: -- item that was taken up previously with the reimbursement of Museum Park expenses.
Vice Chair Suarez: Fair enough.
Ms. Bru: I'm sorry. It doesn't have to do with --
Vice Chair Suarez: I haven't had a chance to read it so --
Ms. Bru: It's a little confusing. I'm sorry.
Vice Chair Suarez: Okay. But still, nevertheless, I'd like for you to make an affirmative
statement on the record regarding this resolution and its legality.
Ms. Bru: Right. The one that's currently before this body is a resolution simply just
de -allocating a certain amount of funds that was previously allocated to a project that is not
being pursued right now. It's my understanding that -- and the Chair of this board can speak to
that, but at this time, that project is not being funded. That doesn't mean that it's not going to be
funded at some future point in time.
Mr. Bockweg: Mr. Chair, ifI may.
Chair Dunn: Yes, Mr. Bockweg.
Mr. Bockweg: The item before you, Commissioner, is not only a de -allocation of a specific
project, which we are looking into finding other resources to fund this project by way of hopefully
the bond proceeds which we are expecting to go out to sale. The other items that are here being
de -allocated are from projects that are already completed and finished but are on the books with
these monies earmarked still for those projects. And I wanted to free up those monies for other
uses. The project that's being defunded is a project that was on the books for a while now, I
believe since 2008. The people that wanted to build this project wanted -- were unable to get the
tax credits that they needed to build it. The CRA is committed in moving forward because the
project was scheduled to be elderly housing and affordable housing. We're committed to moving
that project forward. However, at this time, that allocation is not necessary.
Vice Chair Suarez: Thank you.
Chair Dunn: Is there anyone else? Discussion? Let me just raise another question just for the
record, Mr. Bockweg. So this means that this will have no impact whatsoever on upcoming
projects for this coming year?
Mr. Bockweg: This de -allocation will have absolutely zero impact on any of the projects that are
scheduled for completion.
Chair Dunn: Okay. It's been motioned by Chairman Sarnoff, seconded by Commissioner
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Suarez. All in favor, let us hear by saying aye."
The Commissioners (Collectively): Aye.
3. CRA RESOLUTION
10-01163
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE
SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT
AGENCY AUTHORIZING A TRANSFER, IN AN AMOUNT NOT TO EXCEED
$5,271,317, TO THE CITY OF MIAMI, FOR THE REPAYMENT OF
ADMINISTRATIVE OPERATING SUBSIDIES GIVEN TO THE CRA DURING
THE PERIOD BEGINNING FISCAL YEAR 2000 AND ENDING FISCAL YEAR
2005; ALLOCATING FUNDING FROM SEOPW TAX INCREMENT FUND,
"GENERAL OPERATING," ACCOUNT CODE NO.
10050.920101.891000.0000.00000.
File 10-01163 Cover Memo 9-27-2010.pdf
File 10-01163 Financial Form 09-27-2010.pdf
File 10-01163 Backup 9-27-2010.pdf
File 10-01163 Legislation 9-27-2010.pdf
File 10-01163 Cover Memo SUB 09-27-2010.pdf
File 10-01163 Legislation SUB 09-27-2010.pdf
Motion by Board Member Sarnoff, seconded by Board Member Gort, that this matter be
ADOPTED WITH MODIFICATIONS PASSED by the following vote.
Votes: Ayes: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and
Vice Chair Suarez
CRA-R-1 0-0080
Chair Dunn: Resolution 3.
Pieter Bockweg (Executive Director, Community Redevelopment Agency): Resolution number 3,
Commissioners, a resolution of the Board of Commissioners of the Southeast Overtown/Park
West redevelopment agency authorizing a transfer, in an amount not to exceed 5, 271, 317, to the
City of Miami for the repayment of administrative operating subsidies given to the CRA
(Community Redevelopment Agency) during the period beginning fiscal year 2000 and ending
year -- fiscal year 2005; allocating funds from Southeast Overtown/Park West increment fitnd
Commissioner Sarnoff: I'm going to make the motion with the proviso that the City understand
that it's going to cap any (UNINTELLIGIBLE) from either CRA in the collective amount of
$800, 000 in the future for this fiscal year.
Chair Dunn: Okay, there's a motion by Chairman Sarnoff. Is there a second?
Commissioner Gort: Second.
Vice Chair Suarez: Second for discussion.
Chair Dunn: Okay, second by Commissioner Gort. Commissioner Suarez, you --
Vice Chair Suarez: Thank you, Chairman. I just want to, again, reiterate the same statement on
the record by the City Attorney regarding the transfer of these funds. This is a substituted item,
and if you could also explain on the record the substitution and the difference between the one on
-- that we have in our packet and the one that we were just given a second ago.
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Julie O. Bru (General Counsel): Commissioner Suarez, with respect to the substitute, I deferred
to the executive director to explain that 'cause that's just from the perspective of the amount
that's being reimbursed. But generally speaking, under Florida law, and specifically 163.387
subsection 6(b), it is very clear that a redevelopment agency can reimburse the governing body
for any expenses incurred. And the statute is very broad. It lists several items specifically, but it
uses the phrase lhcluding, but not limited to, rule of statutory construction is that it's a broad
grant of power, not limited, and these are the kinds of things for which redevelopment trust funds
are obtained for. And the items that were submitted to the agency for reimbursement have been
looked at by their financial person, and they have been deemed to have been eligible with respect
to redevelopment type of activities. So, yes, it is legally before you.
Chair Dunn: Is there anyone else?
Grady Muhammad: Mr. Chair.
Chair Dunn: Mr. Chairman.
Commissioner Sarnoff.- Yeah. I mean, I want to reiterate and sort of go a little further than what
Commissioner Suarez is saying. And that is that we're all acting in good faith and in reliance
upon the CRA staff in telling us what these reimbursements are and that they're appropriate
reimbursements to the City 'cause we've not done an independent audit.
Chair Dunn: Yes. Thank you. And I just want to again, for the record, reiterate what I stated in
the Omni portion. As we know, the City is in trouble; and other organizations, either directly or
indirectly, are being asked to, for lack of better word, have some skin in the game -- put some
skin in the game. We've been advised legally and professionally and administratively by our staff
that we are on solid foundation. But I also want to make sure, as Pieter said earlier, no project
in Overtown/Park West area will be deprived as a result of this reimbursement. And this also
means, if Pm not mistaken, that Park -- Town Park will also be -- there'll be some availability to
assist them in whatever way that we can. This will not have an impact on any of the projects in
Overtown/Park West.
Mr. Bockweg: That's correct, Mr. Chairman.
Chair Dunn: And I want to state for the record Town Park because we know what's happening
with them.
Mr. Muhammad.- Mr. Chair.
Chair Dunn: We're not opening up on this.
Mr. Muhammad: No problem, Mr. Chair.
Mr. Bockweg: Mr. Chair, I would like to give Miguel an opportunity to address Commissioner
Sarnoffs comment.
Chair Dunn: Yes.
Miguel Valentin (Financial Officer, Community Redevelopment Agency): Commissioner Sarnoff
and Commissioner Dunn, I just -- I wanted to put on record that the 5,271,317 that the City's
asking us to be reimbursed, that was taken out of a summation that derived from the audited
financial statements issued since 2000 until 2005. And I just -- I wanted to put this on record.
And I know, since I've been in the City -- in the CRA since 2003, that the City has given the CRA
general fund monies to carry out our CRA administration.
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MOTION TO ADJOURN
Commissioner Sarnoff Thank you.
Chair Dunn: Is there anyone else? Vice Chair Carollo.
Commissioner Carollo: Thank you, Mr. Chairman. I don't want to be redundant. I just want to
put on the record also that, you know, we received this -- at least I received this at 2 p.m. this
afternoon, an hour and a half ago. And I mean, I am just depending on management and their,
you know, guidance, their due diligence and so forth. I think -- I don't want to say that all of us
are showing the same concern, but I think we're all saying the same issue. And again, I don't
want to be redundant. I just want to put that for the record. Thank you.
Chair Dunn: Okay. If there's no other discussion, there's been a motion by Chairman Sarnoff,
seconded by Commissioner Gort. All in favor, let us hear by saying tiye. "
The Commissioners (Collectively): Aye.
Priscilla A. Thompson (Clerk of the Board): Understanding the record will show that it has been
adopted with modifications.
Chair Dunn: Thank you.
Ms. Thompson: Thank you.
A motion was made by Commissioner Sarnoff, seconded by Vice Chair Suarez, and was passed
unanimously, to adjourn today's meeting.
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