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HomeMy WebLinkAboutSEOPW CRA 2010-09-27 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Di IN O9P 19 1i: 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. City of Miami Page 2 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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 City of Miami Page 3 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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. City of Miami Page 4 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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. City of Miami Page 5 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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? City of Miami Page 6 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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. City of Miami Page 7 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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 City of Miami Page 8 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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. City of Miami Page 9 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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. City of Miami Page 10 Printed on 1/11/2011 SEOPW Community Redevelopment Agencies Meeting Minutes September 27, 2010 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. City of Miami Page 11 Printed on 1/11/2011