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HomeMy WebLinkAboutSEOPW CRA 2011-05-31 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Di • IN O9▪ IEP 19 1i? Meeting Minutes Tuesday, May 31, 2011 5:00 PM Frederick Douglass Elementary 314 NW 12th Street Miami, FI. SEOPW Community Redevelopment Agency 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 Agency Meeting Minutes May 31, 2011 INVOCATION AND PLEDGE OF ALLEGIANCE FINANCIALS 1. 11-00449 Present: Chair Dunn II, Commissioner Sarnoff, Vice Chair Suarez, Commissioner Carollo and Commissioner Gort On the 31st day of May 2011, the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency of the City of Miami met in regular session at Frederick Douglass Elementary School, 314 NW 12th Street, Miami, Florida. The meeting was called to order by Chair Dunn at 5:15 p.m. and was adjourned at 7: 06 p.m. ALSO PRESENT: Pieter Bockweg, Executive Director, CRA Clarence Woods, Assistant Executive Director, CRA Veronica Xiques, Assistant General Counsel, CRA Priscilla A. Thompson, Clerk of the Board Chair Dunn: Want to say good afternoon. Want to welcome you to the Southeast Overtown/Park West CRA (Community Redevelopment Agency), as well as the Omni CRA and Midtown CRA meetings. We're going to ask that if you have pagers on or cell phones, if you would either cut the cell phones off or put them on vibration or vibrator where we -- it would not disturb or interrupt the meeting. We're going to also ask that if anyone comes to speak during the public hearing, that you would give us your name -- state your name for the record, as well as your address. We are hoping that this meeting can be a thorough meeting, but we don't have to be here all night. I think we all know what's happening tonight, so I'll just kind of leave it at that. But we welcome you to the CRA meeting here at Frederick Douglass Elementary. With that being said, I'm going to ask my colleague, Commissioner Carollo, if he would lead us in our invocation, followed by the pledge of allegiance by CRA Midtown Chairman and colleague, Commissioner Suarez. Invocation and pledge of allegiance delivered. Chair Dunn: I believe all of us know who this CRB -- CRA (Community Redevelopment Agency) Board is made up of. But just out of respect, we do want to acknowledge Commissioner Frank Carollo, who serves as Vice Chairman of our City of Miami Commission, followed by CRA Omni Chairman and Commissioner Marc Sarnoff; yours truly, Richard P. Dunn, II, also by the CRA Midtown Chairman, Commissioner Francis Suarez, and our Chairperson of our City Commission but also CRA board member, Chairman/Commissioner Willy Gort. CRA REPORT FINANCIAL SUMMARY THROUGH MONTH ENDING APRIL 30, 2011. File# 11-00449--05-31-2011 - Financial Summary.pdf PRESENTED Chair Dunn: At this time we're going to prepare now for the financial summary. [Later...] Miguel Valentin: Miguel Valentin, CRA (Community Redevelopment Agency) financial officer. As we're doing every month, we're going to be presenting the combined statement of financial position for Southeast Overtown/Park West. As of April 30, 2011, we are disclosing the amount City of Miami Paget Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 RESOLUTIONS 2. 11-00450 of 28, 893, 219 as cash. There is nothing else to inform to the Board. Chair Dunn: Are there any questions or comments? Commissioner Carollo: Mr. Chairman. Chair Dunn: Yes, Commissioner Carollo. Commissioner Carollo: The same comments that I've had on the previous meetings with regards to the finances, I -- you know, I have the same comments. So instead of repeating it, I'm just going to say refer to the previous financial summary. Thank you. Chair Dunn: Thank you very much. Any other comments? CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING A GRANT, IN AN AMOUNT NOT TO EXCEED $50,000 TO GC LOUNGE, INC. TO UNDERWRITE A PORTION OF THE COST ASSOCIATED WITH THE INTERIOR BUILD OUT OF THE COMMERCIAL SPACE LOCATED AT 697 NORTH MIAMI AVENUE; REQUIRING GRANTEE TO CREATE FIFTEEN (15) NEW PERMANENT JOBS; AUTHORIZING THE EXECUTIVE DIRECTOR, AT HIS DISCRETION, TO DISBURSE THE GRANT 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 FUNDS FROM SEOPW TAX INCREMENT FUND, "SEOPW OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File# 11-00450-05-31-2011-Cover Memo.pdf File# 11-00450- 05-31-2011-Financial Form.pdf File # 11-00450 -05-31-2011- Backup.pdf File# 11-00450-05-31-2011-Legislation.pdf Motion by Board Member Gort, seconded by Board Member Carollo, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II, Commissioner Sarnoff and Vice Chair Suarez Chelsa Arscott: Okay. Chelsa Arscott, program administrator for the Miami CRA (Community Redevelopment Agency). Item number 2 is a resolution approving -- I'm sorry. It's a resolution authorizing the issuance of a grant, in an amount not to exceed $50, 000, to GC Lounge, Inc., for the build out of commercial space located at 697 North Miami Avenue in Park West to -- as an adaptive reuse space in support of the film and media entertainment industries. As background, you may be aware that in 2010, the CRA had established a relocation and business expansion grant program as part of our job creation initiatives. We were looking to promote the media and entertainment districts within both CRAs. I had distributed a pamphlet which gives you more information on the entertainment districts that are designated in our areas. And in working with past entities, our collaboration with the Film Life, Inc. when we were working with them with American Black Film Festival, we realized, speaking to a number of these filmmakers, that what City of Miami Page 3 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 was needed in our area to promote this industry was to have a synergy. And in 2010, when the state of Florida passed its jobs program, they had established a program called the Local Government Distress Area Matching Grant program, and the CRA then established our grant program to complement the state's program. The state's program required that a minimum of 15 jobs be created for every grant it issues up to $50, 000 and that that monies be matched by a local government entity. So GC Lounge is the first entity that we have screened. We have received application from at least four other entities, and GC Lounge was the only one that qualified and documented that they, indeed can establish the 15 new jobs. And this is 15 full-time positions or -- for every one full-time position, two part-time positions. So that's going to be something that we will qualify funding in the grant agreement. And -- I'm sorry. And so this is the item that's before you requesting that you authorize the funding of this first applicant. Chair Dunn: Okay. Is there anyone from the public would like to speak on this item? Okay. Is there anything from the -- my colleagues? Commissioner Carollo: Mr. Chairman. Chair Dunn: Yes, Commissioner Carollo. Commissioner Carollo: Thank you. I have a couple of comments. The first one is I understand this is written as a grant. I would prefer -- however, I will follow the will of this Board -- a loan. So that's my first item, you know, and we could discuss it. But I would prefer a loan instead of actually a grant. And the second thing, which I will be a lot more adamant about, is that it not only create 15 jobs, but it creates and maintains 15 jobs for residents within the Overtown CRA boundaries. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Mr. -- I'm sorry, Commissioner. Chair Dunn: Commissioner Suarez and then -- Vice Chair Suarez: Thank you, Mr. Chairman. I wholeheartedly agree with the Vice Chairman. And what I find a little bit difficult when I was doing kind of the math on this is if it creates -- with $50,000 you create 15 jobs, that's a little more than $3, 000 per job. So I mean, that's -- I mean, what kind of a job is that. I mean, how long does that job last? There's really no specificity as to, you know -- since we don't have the grant in our backup program, we don't know exactly how long that job is supposed to last. And if it's a part-time job, then it would be, you know, $1,500 'cause it would be two part-time jobs for every full-time job so -- Ms. Arscott: Well, let me ask you -- answer the first question. The notion about the 15 jobs being created for the (UNINTELLIGIBLE) grant, that's really a requirement of the state's program, so all we're doing is just supporting that state initiative. And the understanding was not that the state would give you $50, 000 and that you would use that money to then employ. It's really -- we understand that in this downturn of the economy, a lot of our businesses that we meet on a daily basis, they have very simple needs. I mean, we had one business that just needed $5, 000. With that $5, 000 he turned around and established his new hot sauce and went through all the -- so we realize that a lot of the businesses have very minor needs that can be resolved with a couple of grant dollars that can then move them further in terms of their ability to retain and also to create new jobs. So the requirement of the 15 jobs for the 50,000 is a statement program, and all we're doing is just providing additional funding if the applicant is able to meet that requirement. What we also did in our program was we also created a lower tier, so up to $24,999 if the person -- if the entity is able to create one job that would qual. It wouldn't go to the state for a complementary match, but basically it also covers that other tier where we have seen the need from our local businesses. City of Miami Page 4 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Vice Chair Suarez: Okay. So what I think you're saying is that the $50,000 grant is not supposed to necessarily create all 15 of the jobs and sustain -- Ms. Arscott: Right. Vice Chair Suarez: -- all 15 of the jobs. Ms. Arscott: Right. Vice Chair Suarez: What can you show us as -- and maybe the Vice Chairman would want to know this as well -- kind of a guarantee that we can know that that business is capable of producing and creating 15 jobs? Have you looked at their financials? Do they have a financial history of creating jobs? Ms. Arscott: Sure. We have the representatives here from the applicant, and they can speak in more detail to that. But GC Lounge first came to the Park West area in 2010. And the moment they came in, they acquired access to that space. They made improvements. They have spent approximately $1.8 million on their current location. They have been very successful in booking events and promoting that site for uses in the media and entertainment. And we can have them come and speak. They have a list of the businesses and the functions that they have held at that facility, so we have seen where they have the financial wherewithal in terms of establishing that business and continuing to promote their business. And we understand that wherever we can help, particularly when we can create 15 new jobs, which is much needed in the Overtown/Park West area, we're willing to support. Chair Dunn: Yes. Commissioner -- Chairman Gort. Commissioner Gort: Let me ask a question. My understanding, the final decision has got to come in front of the Commissioners? Ms. Arscott: I'm sorry. The -- Mr. Bockweg: Mr. Chair, ifI may. Chair Dunn: Go ahead, Mr. Executive Director. Commissioner Gort: A couple of questions. One is, I'd like to have the backup material in the future. I'd like to see the contract. I'd like to see what the revenues is, and what's the total amount of monies they're going to receive? They're going to receive how much from the state? Ms. Arscott: That process is a competitive process. And so the way how we have set up our program, once funding is awarded by the entity, in this case the CRA, then an application will be made to the state. And the application has to be made by the municipal entity. So we've already spoken to the City's Grants Department who has advised that they're willing to submit the application to the state, but it can only be submitted once a resolution or some legislative document is there showing monies have been awarded to the entity. Commissioner Gort: What happens if the states [sic] do not grant the funds? Ms. Arscott: Then the entity would just receive the CRA monies because -- Commissioner Gort: They still receive CRA money. Ms. Arscott: Right. Because, essentially, we are trying to support that business, and we're saying we -- you can leverage this funding by also supplementing it with the matching program City of Miami Page 5 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 being offered by the state, but that's a competitive process. The monies are on a first -come, first -serve basis, and so basically we have to make application to the state, but we're still supporting the business with our funding. Chair Dunn: Mr. Bockweg. Mr. Bockweg: Commissioner, let me address some of your concerns by mentioning two things, which I think will help. As part of the grant agreement, which obviously still needs to be negotiated between the CRA and GC, as far as the jobs are concerned, I can make sure that as part of the grant -- in the grant agreement that the jobs need to be sustained for a minimum of 18 months by somebody from the Southeast Overtown/Park West CRA. And if not, then they would have to reimburse the portions of the monies that they have already spent. The other thing that I can do, Commissioner Gort, to address your concern is, as part of the grant agreements, that prior to any dollars being spent for GC Lounge, we need some sort of assurance that the project will still come to its fruition and be built and be operating whether or not they get the matching grant from the state, and we can put that language into the grant agreement; and before any dollars are spend supporting that business, we would need proof that they could still open up and do what they're planning to do with the $50, 000. Ms. Arscott: And Commissioner Gort, also, in order to submit the application to the state, the application would also need to show that the 15 jobs have already been created. That's a requirement of the state's program. Vice Chair Suarez: I have a couple questions. One is, is it possible for us, going forward, to have the grant agreement, you know, contemporaneous with the item that we're going to be approving? Mr. Bockweg: Well, that way -- if that's what you'd like, Commissioner, I would say to you that I would have to sit down and negotiate the grant agreement prior to the item coming before you and that would take a lot of time negotiating that not knowing if, ultimately, the item will be passed or not. Vice Chair Suarez: That makes sense. Mr. Bockweg: What would be more efficient, I believe, is if you would give me the conditions that you would like to have seen -- put into the grant agreement, and I will make sure that those will be put into the grant agreement. Commissioner Sarnoff Mr. Chair. Chair Dunn: Go ahead, Commissioner Sarnoff -- Chairman Sarnoff. Commissioner Sarnoff.- Mr. Bockweg, would the -- would a loan satisfy the state requirement for matching funds? Mr. Bockweg: Chelsa, does it work on a loan? Ms. Arscott: From my understanding, it needed to be a grant. Commissioner Sarnoff- Okay. So we would not be leveraging the $25,000 into 50 -- I should say the 50 into 100? Ms. Arscott: I'm so sorry. I didn't hear the question. Commissioner Sarnoff- It's not to exceed -- in an amount to $50, 000, which I surmise is the CRA City of Miami Page 6 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 portion, correct? Mr. Bockweg: That's correct. Ms. Arscott: Right. Commissioner Sarnoff.- So then you wouldn't be able to leverage the 50 into 100. Is it not a matching agreement from the state? Ms. Arscott: Right. It's (UNINTELLIGIBLE), Commissioner Sarnoff, this is a program that the CRA is funding regardless. Commissioner Sarnoff.- I understand that. Ms. Arscott: Right, okay, right. Commissioner Sarnoff.- But the -- I understand that $50, 000 they'll be able to spend theoretically to construct the bar, install shelving, acoustical sound dampening, furnishing and seating, install decorative framing, build out additional bath, paint and patch drywall, relocate and increase -- I can read all this stuff, okay. It seems that this Board is concerned about whether it's going to be jobs and whether it's going to be recompensable. If we make it recompensable, which just means a loan, then they will not be eligible for the $50, 000 for the state, and therein they may not be able to complete the laundry list of incendiaries that you put on the detailed scope of work, which appears just from my inexperienced eye to be more than $50, 000. Ms. Arscott: It's not specified, Commissioner, and that's something that I can confirm by calling the state. The way that they have the wording, it just says that the multiple [sic] is offering financial assistance, so that it doesn't spec whether it's in the form of a grant or in the form of a loan, so that's something that I can definitely confirm whether or not -- Mr. Bockweg: Commissioner, one of the things that I'd like to address as far as it relates to the loan process itself. Currently, the CRA is not set up to service a loan. We -- who would service ultimately that loan and on what conditions would that loan be repaid, at what percentage, and things like that? We are not set up. That's why we provide the grants. The best thing that we can do -- and that's not to say that I can't look into finding a way that we would create a loan program for the CRA. But the best -- as far as this is concerned -- Commissioner Sarnoff.- It'd take about ten minutes, Mr. Bockweg; I could explain it to you. Not hard. I don't know that a loan is going to satisfy the state. I suspect it will not. I've never known them to be -- when they say they want a matching amount, it means cash in hand. So I suspect what we're talking about is either we're going to loan them 50,000, in which case they're not going to be able to leverage, or we're going to give them a grant. But to come back and say you're not set up to do loans, I can get you some commercial paper, and I can show you how it works, as I think you probably have done so for your car, you probably have done so for your house. It's not hard to set up to be a loaner. Vice Chair Suarez: Mr. Chairman, ifI may. Chair Dunn: Go ahead, Commissioner Suarez. Vice Chair Suarez: Thank you, Mr. Chairman. I think my concern also goes back to the other concern that the Vice Chairman made having to do with the length of jobs that would be created from this program, and how do we have assurances that we're going to create those jobs. How do we have assurances that they're going to be -- I'm assuming we'll have assurances through the actual agreement itself, through the grant agreement regarding where the jobs have to come City of Miami Pagel Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 from. They have to come from the CRA, presumably. But what assurances that we have that after we give this $50,000, number one, we don't know if the state's going to match it. That's up in the air. And they may match it; they may not match it. I don't know to what extent funds are available. I don't know how easy they are to get. If the governor's vetoing prowess is any indication, I don't know how much is left in Tallahassee. But I think our concern is we give this money, it goes out, and how do we know that it's actually going to create those jobs, that they're going to be sustained jobs, that they're going to stay within the CRA boundaries. You know, we don't have anything in our backup that gives us a -- you know, at least I don't see anything in the backup. Ms. Arscott: The CRA has recently instituted a grant monitoring form. So on a quarterly basis, we have been sending out this document to all of our grantees, and one of the things we wanted to track is the long-term benefits of our funding, and we do this tracking for a period of two years after the issuance of the grant award. And basically, we have it in three categories in the same way we have our grant application so it's very easy to follow through with what you have checked off as your goal and what we're now checking to see that you have fulfilled. But in this particular case, we would have included that monitoring form as an exhibit to the grant agreement noting exactly when we required that applicant to submit this report. And it does ask for a copy of their payroll and documentation so that we can then ver the addresses of the residents that they're qualifying as -- for that position. And we have gotten that report already from some of our grantees. Vice Chair Suarez: But -- excuse me. May -- Chair Dunn: Go ahead. Vice Chair Suarez: -- I just kind of follow up. This $50,000 is going to go to infrastructure improvements. Ms. Arscott: Right. Vice Chair Suarez: But have you -- what have you seen on their balance sheet or on their, you know, pro formas, or whatever, that gives you an indication that they have the money to create 15 full-time jobs. A full-time job costs, you know, on the low end $25,000 a year, so that's -- times ten is 250, times another 5 is another 125, so you're talking about $375, 000 in cash or in a line of credit that gives you the impression that this establishment has the ability to create and fund 15 new jobs for at least a year? Ms. Arscott: I mean, I can definitely have the representative speak on that. I mean, this is an individual that has owned other businesses in Miami and have established employment. At GC Lounge specifically, the same site that we're talking about here, they have already established 15 or so jobs already on site, and we have those list of jobs so that when we are documenting the new jobs, we're documenting them as brand-new job. But I can definitely have the applicant who's here to speak on the financial wherewithal to maintain the number of jobs. Chair Dunn: Before they come forward, I believe my colleague, Commissioner Gort, had a -- you had a comment or question you --? No? I want to ask a question 'cause I'm feeling a little uneasy as well in some regards. Is this a time -sensitive item? Mr. Bockweg: No, it's not, Commissioner. Chair Dunn: Well, I -- Mr. Bockweg: Well, it's not for us. Let's go at it that way. City of Miami Page 8 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Chair Dunn: Okay. Well -- Ms. Arscott: Well, it's time -sensitive for the applicant because as you well know, when you have certain investors, you have that synergy; and again, the applicant can identify the list of activities that they have booked and activities that they're continuing to book. And definitely, there's a need to expand and grow so -- Chair Dunn: Well, let's hear from them, but I'm thinking maybe we need to come back and tighten it up a little bit. Mr. Bockweg: If I may, Mr. Chair, for one moment. Chair Dunn: Sure. Mr. Bockweg: As far as this grant is concerned to GC Lounge, I think it's comparable to the other grants that the CRA has submitted and have approved in the past when jobs are created. And one of the reasons why we created that grant monitoring form, which is given out quarterly, is for the exact purpose of the concern of the Board to make sure that these employers -- that these people are employing the people that they said they would. We could put parameters within the grant agreement telling them if you don't hire X'imount for X'amount of months or a year or whatnot, you owe us the money back. We can put those parameters in the grant agreement. Commissioner Sarnoff So, Mr. Bockweg -- I apologize. Is that all right, Mr. Chair? Chair Dunn: Go ahead. Commissioner Sarnoff So, Mr. Bockweg, let's just assume this is GC Lounge, LLC (Limited Liability Company) 1. So you'd enter into an agreement with GC Lounge, LLC 1 and then they would essentially stop operating. Who would your agreement be with? Mr. Bockweg: Well, that agreement would be with GC Lounge. Commissioner Sarnoff.- Right. So I think what Commissioner Suarez has been asking for is for him to exercise his fiduciary duty, what bona fides are these people presenting to us as a Board that demonstrates their financial ability from the legal entity which is getting the grant without benefit of either a personal guarantee or of some other documentation or pledges so that he knows that in exercising his fiduciary duty to this Board and to the citizens, he knows that this would be paid back. And I haven't seen or there has been no evidence or demonstration in our record here tonight what those bona fides are. Brian Basti: Good afternoon. Brian Basti, GC Lounge. Going back to your numbers of employees and all that stuff, at the two -- you say 350 a year, $25, 000. A lot of the employees there will be tip employees, so they will be doing 40 hours a week, but they'll be getting paid the four something an hour plus gratuities, which will end up being more than what you had stated as the -- I don't remember exactly. The 20 -- Vice Chair Suarez: The number I came up was $25, 000 -- Chair Dunn: Twenty thousand a year. Mr. Basti: Yeah. Vice Chair Suarez: -- a year, which is about $2,000 a month, so it's not a very high number. City of Miami Page Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Mr. Basti: Yeah. To run -- Vice Chair Suarez: Even at four dollars an hour -- I'm just trying to say -- Mr. Basti: Yeah. Vice Chair Suarez: -- I'm hitting like a floor of what a full-time job is. A full-time job is eight hours a day, a very -- you know, minimum of eight hours a day, forty hours a week. And I would say maybe under that construct, the price is a little bit less than 20 -- you know, than $25, 000 a year per job. But let's say it's 20,000 or even 15,000. That's still -- 150 plus another 75, that's still 225. So the question is, you know, what evidence has been presented to this Board that your entity has $225, 000 to essentially hire these people for the very minimum of a year. I mean, the Vice Chairman, one of his issues was the timeframe involved, and we don't want to just give $50, 000 and a job is created for a month -- a full-time job is created for a month and then that's it, you know. I mean, we want to invest our money wisely so that, hopefully, it's a permanent job that never goes away. But at the very minimum, you know, it's a job that stays with this community for at least a year, 18 months, whatever the Board feels comfortable with in terms of a time horizon for a return on our investment. Mr. Basti: What can we give you guys to --? Mr. Bockweg: Mr. Chair and the Board, what I propose, if it's okay with the Board, is that we'll defer the item to the next month, and I will make sure that as part of the backup, you will see that they have the capital to sustain and provide the jobs that's needed for that organization, as requested. Commissioner Carollo: Mr. Chairman. Chair Dunn: Commissioner Carollo. Commissioner Carollo: Thank you. And I think there's two parts. One is exactly what you said. The second is, on the fifth whereas in this resolution that we were going to vote on, it says in exchange for the $50,000 grant, GC Lounge has agreed to create 50 new jobs within 16 days of obtaining their certificate of use for its restaurant located at -- and the address. And to that, if you could add not just create and maintain the new -- the jobs with people that live within the -- Vice Chair Suarez: CRA boundaries. Commissioner Carollo: -- Overtown CRA district. Mr. Bockweg: Would 18 months be okay to the Board or --? Do you want to put a limit on how long they maintain it or not? Commissioner Carollo: Well, here's the thing. Let's say they hire 15 people. One of them has to let go or -- then that job should go to another resident -- Mr. Bockweg: Absolutely. Commissioner Carollo: -- in the Overtown district. Mr. Bockweg: Okay. Commissioner Carollo: So I don't know how you want to word it -- Mr. Bockweg: I understand. City of Miami Page 10 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Carollo: -- but I want those 15 jobs to maintain within the Overtown CRA district. Commissioner Gort: And you should have financial statements. Mr. Bockweg: Yeah, we'll include the financial statement as part of the backup. Commissioner Gort: It's very important to have the financial statements to see if they have the capability and what have they done in the past. Chair Dunn: Okay. Is there a motion to --? Was that everything for the deferral? Commissioner Carollo: I think so. Chair Dunn: It's a motion for -- Commissioner Gort: Move it. Commissioner Carollo: Second for deferral. Chair Dunn: Motion -- Mr. Bockweg: Well, you're not moving it. You're deferring it. Chair Dunn: Deferring it, yeah. Motion to defer, yeah. Commissioner Carollo: Motion to defer. Chair Dunn: Yes. Vice Chair Suarez: Second. Chair Dunn: Okay. Motion to defer was by Commissioner Gort, second by Commissioner Carollo. All in favor, let us hear by saying Eye." The Commissioners (Collectively): Aye. Commissioner Carollo: And Mr. -- Chair Dunn: Yes. Commissioner Carollo, yes. Commissioner Carollo: And Madam City Clerk, when we defer, do we need to specify a date in this deferral? Priscilla A. Thompson (Clerk of the Board): Your procedures and processes here at the CRA are not as strict as with your regular Commission meeting, so you've not put forth the procedure as stating a date. You usually give that kind of leeway to the director so he can do whatever it is he needs to do within whatever time is necessary. So you have not been that strict with that procedure. Commissioner Carollo: Thank you, ma'am. Chair Dunn: Thank you. City of Miami Page 11 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 3. 11-00451 Commissioner Carollo: And I failed to say the aye, "so -- Chair Dunn: Thank you, colleagues, Commissioners, for -- Board members, actually, in this forum. I think what this does -- and we'll move to the next item -- it shows consistency in terms of our position. We are really genuinely concerned about the creation of jobs in the truest sense because we have to be accountable to that, and so I appreciate the items that -- the issues that were brought up. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO ACCEPT THE TRANSFER OF TITLE FROM THE CITY OF MIAMI OF THE PROPERTY LOCATED AT 1490 NW 3RD AVENUE, MIAMI, FLORIDA, KNOWN AS THE OVERTOWN SHOPPING CENTER; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL File # 11-00451-05-31-2011-Cover Memo.pdf File # 11-00451-05-31-2011-Legislation.pdf File #11-00451 05-31-2011 Legislation (Signed).pdf Motion by Vice -Chair Suarez, seconded by Board Member Carollo, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II, Commissioner Sarnoff and Vice Chair Suarez Pieter Bockweg (Executive Director, Community Redevelopment Agency): Mr. Chair, if I may. Item number 3 on the Southeast Overtown/Park West agenda will be deferred to a later date. Chair Dunn: Okay. Do we have to take -- we need to take a motion for that? Priscilla A. Thompson (Clerk of the Board): Yes. Chair Dunn: Yes. Vice Chair Suarez: So move. Commissioner Carollo: Second. Chair Dunn: It's been properly motioned by Commissioner Suarez, second by Commissioner Carollo that item 3 of CRA Overtown -- Southeast Overtown/Park West agenda be deferred. All in favor, let us hear by saying aye." The Commissioners (Collectively): Aye. Chair Dunn: Nays have the same privilege. So moved. 4. CRA RESOLUTION 11-00452 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO City of Miami Page 12 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 IMPLEMENTA REVOCABLE LICENSE AGREEMENT PROGRAM WITH AN EFFECTIVE DATE OF APRIL 1, 2011; DELEGATING THE AUTHORITY TO THE EXECUTIVE DIRECTOR TO DEVELOP, MANAGE, AND ISSUE REVOCABLE LICENSES FOR THE USE OF ANY REAL PROPERTY OWNED BY THE CRA, AND TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL; DIRECTING THAT FINANCIAL REPORTS BE PREPARED AND PRESENTED TO THE CRA BOARD ON A QUARTERLY BASIS DOCUMENTING THE REVOCABLE LICENSES ISSUED DURING THE REPORTING PERIOD; DIRECTING THAT ANY PROPOSAL FOR THE TRANSFER OF REAL PROPERTY OR ANY INTEREST IN REAL PROPERTIES OWNED BY THE CRA BE REVIEWED IN ACCORDANCE TO THE STATUTORY DISPOSITION PROCESS IN 163.380, F.S. AND BE PRESENTED TO THE CRA BOARD FOR APPROVAL File # 11-00452-05-31-2011-Cover Memo.pdf File # 11-00452-05-31-2011-Legislation.pdf File # 11-00452 05-31-2011-Legislation(Signed).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 and Commissioner Sarnoff Noes: Commissioner Carollo and Vice Chair Suarez CRA-R-11 -0025 Chair Dunn: Item -- was it item 4. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Item number 4, Mr. Chair, this is an item that I had asked be put in front of the agenda. What this is referring to is giving me permission to negotiate the revocable licenses for CRA (Community Redevelopment Agency) owned property. In essence, what this reso does is it creates a form or a procedure to where I bring in front of the Board all the license agreements that I negotiate for the City -owned property -- CRA property. I apologize. There are particularly three or four properties that we get requests now and then and again to rent. One of them is the Ward Rooming House. I've been approached by FPL (Florida Power & Light) and other members to rent Block 25, which is that open parking lot next to the 9th Street Pedestrian Mall, and now, of course, the Skills Center. And the way it's worded here is that I would come back in front of the Board and that I have established -- by doing this, it's established a procedure where I would come to the Board and express to you and show you the monies that we have generated and et cetera out of those negotiations for revocable licenses, as well as it would expedite things that sometimes, from a timing issue, we do not have any control. And a perfect example of that is the Rock of Ages movie. They wanted to rent the Skills Center for storage of the cars and crew and whatnot. They were under a time crunch. They wanted to have it rented. They said we need to know right away because if not, we're going to have to go somewhere else and whatnot. We did have -- we did enter into a lease agreement with -- revocable license agreement with Rock of Ages. We are receiving $5, 000 a month plus utilities, as well as some improvements to the building once they leave. That is a perfect example of a facility that we can generate some revenue; cover the cost of the building that if I had to wait until the end of the month to present in front of the Board, they would have been somewhere else. And the same would go for the building that we are currently renovating, which is Ebenezer church, where we will have a lot of hopefully, events like weddings, parties, dances, et cetera, that people will then ask to rent out that space from us. So, in essence, this would just set a program in that I would present to the Board quarterly on that progress. Commissioner Carollo: Mr. Chairman. City of Miami Page 13 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Chair Dunn: Commissioner Carollo. Commissioner Carollo: Thank you. Mr. Executive Director, can you define long-term use in this resolution? Mr. Bockweg: I purposely, Commissioner, left that open, and it's worded like this on purpose so that the Board can decide whatever it feels is considered long-term or short-term. Commissioner Carollo: Well, here's the thing. You come back to this Board if it's a long-term use, but any short-term use -- and again, I don't see the definition here -- or anything that is not long-term use, you don't have to come back to this Board. At the very least, I need to know definitions. Second of all, it seems to me that every revocable lease has to come before the City Commission, so why should the CRA be different? I think it should come back to this Board. Mr. Bockweg: Yes, Commissioner, you're 100 percent correct that every revocable lease goes in front of the City Commission. Commissioner Carollo: Or revocable license. Mr. Bockweg: License, I'm sorry, goes in front of the City Commission. Traditionally -- and I have done so myself with the billboards. Commissioner Carollo: Right. Mr. Bockweg: And those are all very long-term leases or licenses. What does not, from my understanding, come before the City Commission are events such as a party, somebody renting out space at Jose Marti to throw a party for a day. Those items do not come before the City Commission for ultimate approval. Or if somebody wants to rent out a soccer field for an event, those things do not come in front of the City Commission. So that in itself, the long -- Commissioner Carollo: But I don't think that's within the definition revocable license agreement. Mr. Bockweg: The -- Commissioner Carollo: Those special events aren't a revocable license agreement. A revocable license agreement does have to come before the City Commission. Mr. Bockweg: The reason why I would have to do a revocable license, Commissioner, is specifically -- let's take the Skills Center, which is a perfect example. If I had to rent that out, for example, like we did to Rock of Ages, if it's not a revocable license, I would have to first bid it out, ask for responses, and then proceed to rent the space. The revocable license (UNINTELLIGIBLE) be withdrawn or ended at any time. That, in itself hinders the process of that space being occupied and used. So I understand what you're saying, but I look at the revocable license for the CRA similar to Jose Marti being rented out for a party, for example. Commissioner Carollo: Yeah, but we're mixing apples with oranges here. We're mixing apples with oranges. I'm not saying let's take away the revocable license agreement. All I'm saying is bring it back to this Board every time you want to do a revocable license agreement, just like we do in the City Commission. I'm not trying to take away the revocable license agreement part or tool that you may have. I'm just saying bring it back to this Board exactly like we do in the City Commission. Chair Dunn: Commissioner Suarez, and then I believe Commissioner Sarnoff. Vice Chair Suarez: Thank you, Mr. Chairman. I think we -- with these terms, legal terms, they City of Miami Page 14 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 can get a little tricky, and they can be used interchangeably. Revocable license, whether it's a lease here in the state statute that I'm looking at, which is 163.380, it talks about other transfers and disposition of property in the community redevelopment area. And it says that those can be made only after the approval of the community redevelopment plan by the governing body. So I think one of the things that I would like is a legal opinion, first and foremost, as to whether or not a revocable license is considered a transfer under the state statute. That's one issue. I think another one that goes to the Vice Chairman's position is that the City -- my understanding of the way the City does it is for revocable licenses, which are like short-term leases, there's a fee schedule, and there's a form contract. Mr. Bockweg: I -- Commissioner, I think -- and to Commissioner Carollo's point and to yours, Commissioner Suarez, the City has a permit process in place to allow for those events being held at Jose Marti or at a soccer field. They have a permit process in place that we at the CRA do not currently have. The only way for me to make sure -- to assure that, for example, the Skills Center and we get some use out of that building and again, also get improvements for that building is by -- currently under a revocable license. As it relates to that section, Commissioner -- and correct me if I'm wrong, 'cause I've read that section too when this item came up. It was my understanding that that refers to solely conveying interest of real property. As far as these revocable license are concerned, I'm not conveying any interest in that real property because -- well, that's my understanding. Veronica Xiques (Assistant General Counsel): And he is -- Vice Chair Suarez: I think a leasehold interest is an interest in real property. And then that's where you get into the semantics of whether that's a leasehold or whether that's a revocable license. Ms. Xiques: I think that the City Attorneys office has, on more than one occasion, opined on this. The City Attorneys office has opined that a revocable license does not convey any sort of interest in real estate, in real property in the person that has the license. Vice Chair Suarez: How do you --? Ms. Xiques: A revocable license, by its nature, is a nonexclusive right to simply enter upon a particular space of real property. It doesn't give any kind of exclusive use. It doesn't give any kind of -- Vice Chair Suarez: And it can be revoked at any time. Ms. Xiques: And it can be absolutely -- Vice Chair Suarez: So it doesn't have to go through -- Ms. Xiques: -- revoked at any time. Vice Chair Suarez: -- the eviction process or any of that other stuff that a lease would have -- Ms. Xiques: Right. Vice Chair Suarez: -- to go through. Ms. Xiques: It's absolutely -- it's not, by any means, a lease. It's not a way to couch a transaction that is a lease of something else. It is a revocable license and it -- Vice Chair Suarez: Is there a time -- I mean, usually -- I mean, I guess you could have a City of Miami Page 15 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 revocable license for an indefinite period of time. Ms. Xiques: Right. It's -- there is no term to a revocable license because it is revocable at the will of the CRA at any time. Vice Chair Suarez: So you don't think it would qualify under 163.83 -- 8 -- 380? Ms. Xiques: No. We -- Vice Chair Suarez: It wouldn't be a disposition under your -- Ms. Xiques: It would not be a disposition of real property. Vice Chair Suarez: Okay. My -- I guess my concern is -- and I think it goes back to the central issue here -- and I don't want to put words in anybody else's mouth -- is how do we have some sort of control over these licenses? Because if they're indefinite -- potentially indefinite -- Mr. Bockweg: Well -- but -- and that's why -- Mr. Chair, and that's -- I figured that's why you had a concern. 'Cause I don't think I should be -- I think the Board, if it becomes a long-term lease, should have a significant say as far as what goes and how long -- but that's why I left it open for you to say, you know what, any revocable license under six months, go ahead. Anything past six months or whatever, then it needs to come before the CRA. Chair Dunn: Commissioner Sarnoff and then Commissioner Gort. Commissioner Sarnoff.- You know, it seems like this Board likes to act, as does the City Commission, as a very functional business, and we demand a lot of our bureaucrats, I guess is the best way to put it. And we demand of them to be as nimble as they can be. And then we turn around and we say, oh, no, no, no, but we want to be able to approve everything. And there's simply no way that if you want to do business on the street, so to speak, that you're going to say, well, let me bring this to my board. We just met yesterday, so in 29 days, we'll have another meeting, and then we can decide whether -- And you know what they're going to say to you? Never mind. I'm going to go somewhere else. I'm going to go to Hallandale. I'm going to go to a place that I can do business right now. This Board can always revoke whatever the director has done. You want to set a parameter of three months, you want to set a parameter of six months, that's the policy we need to create. However, to turn around and say that we're going to approve every item, every event, we are hamstringing the CRA and, thus, the CRA will look and act nearly identical to the City, and it will not be nimble. It will not be able to compete. And a lot of the things that you have going, which is, you know, inevitably a movie entertainment center, you'll have it vacant most of the time simply because we won't be able to react. Chair Dunn: Commissioner Suarez and then Commissioner Gort. Vice Chair Suarez: I get, you know, Commissioner Sarnoffs point. I think obviously nimbleness is something that -- it's tough. Like you said, it's tough. It's hard to get both being nimble and at the same time having accountability and transparency in our decisions so that people are not questioning constantly the deals that are being made. And so I think it's hard to strike a balance. And I think what we're trying to do as a body is maybe set some parameters that guide and ensure that the public trust is upheld. I think that's what the Vice Chairman was kind of getting at, you know. How do we --? You know, aside from just allowing this to be -- you know, come back -- Chair Dunn: Open end. Vice Chair Suarez: -- yeah, open-ended. I mean, what can we do to try to set some parameters? City of Miami Page 16 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Sarnoff.- Well, I think one of the things; you could set between a three- to six-month parameter. You could even go lower if you wanted to so that we know that in three months, we would hit at least three meetings where you learn that Pieter Bockweg -- and I'm -- this is all just speculation. Don't anybody, you know -- turns around and leases something for a dollar a month, and you'd be like, that ain't happening. Vice Chair Suarez: What about a month? I mean, what about every --? Like he could enter into a revocable agreement for no more than a month. In other words, between one -- Commissioner Carollo: Remember, he's -- Vice Chair Suarez: -- meeting and the other. Commissioner Carollo: And I'm sorry. Remember, it stipulates in here that he comes back to us quarterly, so every three months so -- Commissioner Sarnoff But we can change that. Vice Chair Suarez: Right. Commissioner Sarnoff. I mean, what I'm saying is whether it's 90 days, whether it's 30 days, whether it's 45 days, I mean -- You're going to say something. Ms. Xiques: I just want to make it clear that a revocable license has no term -- Commissioner Gort: Yeah. You can recall any time. Ms. Xiques: -- so you can specifir that you wouldn't want him to continue anything longer than 60 days or 90 days, but you can't dictate that you will not enter into a revocable license with a term of longer than 90 days -- Vice Chair Suarez: Oh, of course. Ms. Xiques: -- because you're sort of then saying -- Vice Chair Suarez: Defeating the purpose of the instrument -- of the document. Mr. Bockweg: No. That's not what he's -- Commissioner Sarnoff.- But it would seem to me that the solution to this is thus. If in our financials we had a section called rents -- well, what do you want to call it, license fees -- I know you don't want to call it rent -- and you saw that, let's say, Skill Center, you got one dollar one month. Well, the first thing you're going to do is put on the CRA agenda, bring up the license agreement so I can review it and have it revoked 'cause you're going to say there's no way in the world I'm going to let the Skill Center go for one dollar a month. Vice Chair Suarez: I think maybe what we should do is we should require that the executive director notdy us within 24 hours of any revocable licenses issued, and in that way, at least it ensures that we're knowledgeable of what -- and we could call a special meeting, I mean, immediately if we want to cancel the revocable license. I mean, that's another thing that we could do. Chair Dunn: Commissioner Gort. City of Miami Page 17 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Gort: I'm not an attorney. That's why I got to ask these questions. My understanding is you can put in the contract where you can recall at any time with 30 days' notice. In other words, any contract that we can put out, you can give it -- and part of the contract will be within 30 day notice, we can call this back. William R. Bloom (Special Counsel, Community Redevelopment Agency): Commissioners, in the lease that was signed -- the license agreement signed for the Skill Center, I think they wanted a term of six months. The agreement is terminable at any time on 30 days' notice. Vice Chair Suarez: But that's not -- that doesn't strike me as a revocable license. That strikes me more as a lease. Mr. Bloom: It says it's a revocable license -- Vice Chair Suarez: I know what it says, but -- Mr. Bloom: -- which says it can be terminated at any time. Now what you may want to decide as a Board -- Vice Chair Suarez: But you just said with 30 days' notice. Mr. Bloom: -- is what the minimum term -- the cancellation should be. Vice Chair Suarez: But, Mr. Bloom, don't you agree that a judge would interpret what kind of a document is -- you can call a document whatever you want, but a judge will interpret what kind of a document it is, whether it's a lease, whether it's a revocable -- A revocable license, as you've explained it, is a document or is a right, better said, that can be revoked at any time. It can be revoked instantly. You can wake up in the middle of the night and say I don't want them in there anymore. So a document that gives them six months and then 30 days of notice to me doesn't smack of a revocable license. It smacks of a lease with a 30-day cancellation provision. That's what it sounds like to me. I don't know if you agree or disagree. Ms. Xiques: I haven't seen the actual Skill Center document, but I would say that -- I would recommend in this particular -- going forward, if you're going to enter into a revocable license agreement, that you do not have a term; that you make it revocable at any time. You can have a notice provision. You don't have to make it as onerous as 30 days. You could do a five-day notice provision -- Vice Chair Suarez: Twenty-four hours. Ms. Xiques: -- a 15-day -- whatever it is the policy, the will of this Board to do, but I don't believe that a term is an appropriate -- Commissioner Sarnoff.- Well, but bear in mind. He enters into an agreement with somebody, and they act in good faith, and they move in 30, 000 pounds of something -- Vice Chair Suarez: But it's a revocable license. That's the whole point. Commissioner Sarnoff. I get it. But on the other hand you wake up in the morning in a bad mood, you call for a special meeting, and you say I'm going to revoke their license. Vice Chair Suarez: But that's what it is. It's a revocable license. If it wasn't a revocable license, it would be a lease. If it were a lease, it would fall under the statute, and then it would require our approval. City of Miami Page 18 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Sarnoff. Well -- Vice Chair Suarez: It's a different kind of -- You understand what I'm saying? You're kind of trying to get the best of both worlds. Commissioner Sarnoff.- This has been a legal guise that the City has acted under for the better part of 30 years. Mr. Bockweg: Mr. Chairman -- Mr. Chair, ifI may. I would like to use the Skills Center as a great example of how I see that building being used in the future. And the reason why I say that is because when I was sitting down with Rock of Ages and discussing with Bill and Rock of Ages, you know, this had -- this issue did come up. You know what; it's revocable at any time. And they said exactly what Commissioner Sarnoff said, well, then how do we know -- we're going to throw all this investment in there, we're going to do these improvements, we're going to do that. How do we know that, you know, you're not going to do the next day -- and that's why we -- the only reason why (UNINTELLIGIBLE) stay in the Skill Center was because we put that provision in there, giving them the 30-day notice. And I think -- this is not -- this particular reso is not to circumvent any process, whatsoever. This particular reso, in my opinion, is to actually make it more effective so that I can then put the people in those places, which will then be presented to the Board on a quarterly basis. I can send an e-mail (electronic). I can call everybody within 24 hours. But there has to be -- Chair Dunn: I think, Mr. Executive Director, there are several things, but I want to -- let me touch on what the discussion is at hand is how do we give this Board a level of I guess two words I'd use, comfort and confidence that we still would have a final say-so on the decision. I think that's what I hear. But I also hear that it needs to be within a reasonable timeframe. And I have to slightly disagree with 24 hours. I think that's a little too fast. I mean, that's -- I mean, we need to at least give it a reasonable -- where our interests and our input will still be protected, I think. And then the other aspect that I would be remiss, I also want us to view this as -- in terms of Mr. -- and I think you brought it up earlier, Commissioner Sarnoff. He has to have some flexibility to be able to make some decisions, because what inadvertently will happen is a lot of opportunities may end up getting stalled and may be lost because of the timeframe. So I hear all of the -- and all of the arguments are valid. I support it. But I think what we need to do is find a way to try to bring a balance, strike a balance and be fair. But at the same time, protect the interest of this Board and what we represent and our fiduciary responsibilities, et cetera, but also give the prospective lessee or who -- I don't even -- shouldn't use the word lessee, but an opportunity -- Vice Chair Suarez: It's licensee. Commissioner Sarnoff.- Licensee. Chair Dunn: Licensee. Yeah, licensee an opportunity where they will feel comfortable that they will still go forth with the deal. So I don't -- you know, you -- Vice Chair Suarez: I think the other thing is -- Mr. Chairman, ifI may. Chair Dunn: Yes. Vice Chair Suarez: I think he has discretion to a certain amount of money, you know what I mean? Just like the City Manager in the City of Miami has discretion to a certain amount of money; and we say, look, within this amount, we feel that you have -- you should be given the right to make decisions within that amount. And so, you know, I know that the discretionary amount is a lot lower in the CRA than it is at the Commission level. City of Miami Page 19 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Sarnoff. Well, I'm just thinking because imagine if somebody came in for the Skills Center and said I want to pay 60,000 a month. And he goes, whoa. That's beyond my discretion. I have to lower it to 40 so I can -- it's almost counterintuitive to what you want. Vice Chair Suarez: No. I get it. I mean, but if someone wants to -- Commissioner Gort: Fair market value. Vice Chair Suarez: Yeah. I mean -- Commissioner Sarnoff What's that? Commissioner Gort: Fair market value or above. Vice Chair Suarez: I think it actually puts a lot of pressure on the CRA director, you know, and it makes him -- Commissioner Carollo: The Skill Center worked, right? Mr. Bloom: Isn't -- Commissioners, isn't the best thing to do -- Commissioner Carollo: The Skill Center worked, right? Mr. Bloom: It worked. It's signed. Commissioner Sarnoff.- It's working. Commissioner Carollo: So, obviously, why fix something that's not broken? Mr. Bloom: Well, I think the question you have to address is what's the cancellation notice. There should be a form of document and then whether it's quarterly or monthly at meetings to list all those licenses, and the Board can always act -- Commissioner Sarnoff.- Yeah. Can I make a suggestion? And then we can break it off from there. I think he should be allowed to enter into a license agreement that allows people 30 days' notice at a minimum. Vice Chair Suarez: To me that's not a license agreement. I can't vote for that. Commissioner Sarnoff.- I got you. And then what he should do is report to us within five days of all licenses that he's granted. And then he should be allowed to grant licenses for up to 60 days, which would give us, you know, at least one -- it would give us at least two -- theoretically, two meetings that you could bring up the revocation of that license. The person would be protected 'cause they'd have 30 days to get out if this Board said, you know, you need to leave. And the other thing no one's mentioning is if he goes errant, how much -- how long do you think he's going to survive as the CRA director? Vice Chair Suarez: No. I think it's a very unfair thing to put him in that predicament, you know, to put him in a predicament where he's got to be making these on -the -ball decisions and then they can be, you know, overturned by us, and then it's also unfair to the licensee, you know, who's going to move in, like you said, and then the Board will say, well, we didn't get enough, or we didn't want to rent it out to these people, or we didn't want to rent it out for this amount of money or for this timeframe, you know, or someone else comes with a better deal the next day and how did -- did you prefer one over the other, you know. I think it puts a lot of pressure on the executive director. City of Miami Page20 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Ralph M. Ross: Mr. Chairman, can (UNINTELLIGIBLE) speak to this issue? Chair Dunn: Well, let me just find out what the -- I will grant it to you, Pastor Ross, but we -- can you just hold? We're almost there, so just hold for one second. Yes, you -- the answer to that question is yes, but let us -- we're almost -- trying to come to some type of -- but the answer is yes, once -- Mr. Ross: Seems like you're not going to come to a conclusion. Chair Dunn: Well, that's why we're -- that's why we have this -- we have to have this discussion. Because of the sunshine law, we cannot have these discussions prior to the meeting, and that's why we have to do it here. Unfortunately, that is the laws that we're dealing with. But yes, to answer your question, just one second. We will allow you. What is the wish of this Commission in terms of where --? We're in discussion. I'm going to open it up -- I mean, you proffered something. Commissioner Sarnoff Well, I mean -- yeah, I would proffer a motion that the CRA director be allowed to enter into a revocable license agreement of not more than 60 days by his -- and I know you don't want a timeframe on this, Madam City Attorney, but -- Ms. Xiques: I think there's a difference, Commissioner, between a term and a termination notice, and that's what we're getting hung up on. The revocable license agreement shouldn't have a -- it obviously has a beginning date, but it shouldn't have an end date. But that doesn't -- Commissioner Sarnoff.- But what I can do -- Ms. Xiques: -- prevent us from setting -- Commissioner Sarnoff- Right -- Ms. Xiques: -- a termination notice. Commissioner Sarnoff- -- our own internal procedure. Ms. Xiques: Right. Commissioner Sarnoff- So I would give him discretion of up to 60 days, notification to the City -- to the CRA Board within 10 days of all licenses that he's granted, the ability of any Board member to place on any agenda the ability to revoke that license, and that will be my motion. Chair Dunn: There's a motion by Commissioner Sarnoff Commissioner Gort: Second. Chair Dunn: There's a second by Commissioner Gort. All in favor of -- Priscilla A. Thompson (Clerk of the Board): Chair. Chair Dunn: -- the motion -- Yes? Ms. Thompson: I am so sorry, but I need to be clear for your records. Chair Dunn: Okay. City of Miami Page21 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Ms. Thompson: I'm trying to make sure that what is stated on the record is actually going to be a modification -- Chair Dunn: Yes. Ms. Thompson: -- to the resolution that's put before you -- Chair Dunn: That's correct. Ms. Thompson: -- incorporating what Board Member Sarnoff stated, okay. Chair Dunn: That's correct. Ms. Thompson: So when you go and take your vote on this motion, it is for a modified resolution, okay. Chair Dunn: That's correct. Ms. Thompson: Thank you. Chair Dunn: As modified. Ms. Thompson: Thank you. Chair Dunn: That -- I need to state that, right, Madam Clerk? Ms. Thompson: Thank you. Chair Dunn: As modified. There's a motion, as modified, in the motion by Commissioner Sarnoff, seconded by Commissioner Gort. All in favor, let us hear by saying aye." Commissioner Carollo: No. Chair Dunn: Aye. Vice Chair Suarez: No. Chair Dunn: Okay, all -- I guess we do -- how do we do this, Madam Clerk? Just call it out? Ms. Thompson: No. I mean, I'm recording -- Chair Dunn: Just -- okay, you got -- Ms. Thompson: -- as your no votes, Board Member Carollo and Board Member Gort. Did I hear any --? Vice Chair Suarez: Board Member Suarez votes no. Ms. Thompson: Okay, then -- Chair Dunn: So the item passes three -- Ms. Thompson: No, no. You got three -- did I hear three nos? Chair Dunn: Yes, yes. City of Miami Page22 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Gort: I voted yes. Ms. Thompson: Then it fails. Commissioner Gort: I voted yes. Chair Dunn: No, pass. Ms. Thompson: Oh, I'm sorry. Okay, so let me be clear. Your nos are Suarez and Carollo. Chair Dunn: Yes. Ms. Thompson: Thank you. I appreciate it, 3-2. Chair Dunn: Okay. Pastor Ross. Mr. Ross: I don't know whether it has any value now. I'm sorry for me disturbing you all, but I was concerned about the people. It seemed to me that the discussion was mostly about protecting the CRA Board. And I feel that the people who are trying to access these revocable licenses need to be considered. And I think that's what the CRA is about, trying to make things happen for the community and for the people. And it seems to me that you already have an item in place that can serve that purpose. It is an open-ended item, and he has the kind of leeway that he needs to be able to function effectively and efficiently. It seems to me that if a person through the CRA enters into a revocable license, the authority or the power is there to revoke it at any time. And to me, that's almost nonsensical. I don't want to say it that way. I don't -- it's like we're just talking about something that we don't need to talk about. It's a done deal. Chair Dunn: Don't say that. Mr. Ross: I'm through. Chair Dunn: Don't say that. Mr. Ross: No. I'm saying -- Chair Dunn: Please, don't say that. Mr. Ross: -- I'm just saying that's the way it seems to me. Chair Dunn: No, no. I'm just -- no pun intended. Don't say that done deal, though. Mr. Ross: No. I said it seems -- I'm not saying it -- I'm saying -- what I'm saying is that -- Chair Dunn: I'm just teasing you, pastor. Mr. Ross: -- it seems to me like you have something in place and you're tearing it apart. That's what it seems like to me, and I'm through. I don't -- I mean, I'm not so smart. Chair Dunn: Well, I think, to answer your question, we did come up with a amended version or resolution that was -- so I believe we're trying to move forward. Mr. Ross: I understand. Chair Dunn: And we were trying -- that was our purpose of -- City of Miami Page23 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Mr. Ross: I was -- Chair Dunn: No, I understand. But that was the purpose of trying to find a balance for the people but yet, at the same time, we have a fiduciary responsibility to protect the Board and the interest of the Board, so that's always our struggle. Commissioner Gort: Mr. Chairman. Mr. Ross: I understand that, but all I was saying -- and I'm -- this is my last statement. I did not see where the Board was in jeopardy. That's all I'm saying. Chair Dunn: Oh, okay. Well taken. Commissioner Gort. Commissioner Gort: I think mainly you need to understand we cannot argue or discuss any of these item outside of a public hearing. And the reason we do this in the public hearing is because a lot of times we don't get all the information. And mainly, we -- our discussion is not to protect the Board. Our discussion is to make sure that whatever funding comes here is used to maximize the benefit to the people in the CRA area. Chair Dunn: Good point. Mr. Ross: I understand that -- Commissioner Gort: Okay. Mr. Ross: -- perfectly well. And I think you should do that. I was just talking about this particular item. Chair Dunn: Got it. Mr. Ross: As I understood it as you discussed it, I came to my conclusion that it was unnecessary. That's all I'm saying. Chair Dunn: Mr. Cole, and this will be the last person on this item. Derek Cole: Yes. Derek Cole, 1010 Northwest 11 th Street. It was my understanding a year or so ago they opened a restaurant at 900 Biscayne, a Brazilian restaurant, and they were given, through the CRA, 100 or $150,000, and they were going to employ people from Overtown. And there's been several of us that have gone through there and walked into the kitchen and places, and they haven't hired anybody from Overtown. Commissioner Sarnoff. That's not true. Mr. Cole: The -- they may have, but we're not aware of it. Commissioner Sarnoff: It's not true. Mr. Cole: And then the other question is I'm hearing in the community that Poinciana Village, Crosswinds, or the group that was doing Crosswinds in the past is offering to buy out Poinciana Village, and they're going to build Crosswinds again. Is this -- am I hearing a rumor and propaganda or do you know anything about this? Chair Dunn: I -- that's not on the item, but I don't know any of the particulars about that. City of Miami Page24 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Mr. Cole: Okay. Chair Dunn: Thank you. Mr. Cole: Thank you. 5. CRA RESOLUTION 11-00453 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW") AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A LEASE AGREEMENT, IN A FORM ACCEPTABLE TO GENERAL COUNSEL, WITH KONICA MINOLTA BUSINESS SOLUTIONS USA, INC. FOR THE LEASE OF A PHOTOCOPIER, INCLUDING MAINTENANCE AND SUPPLIES, FORA PERIOD OF THREE (3) YEARS, AT A BASE COST OF $8,424 PER YEAR, AND NOT TO EXCEED $25,272 IN TOTAL FOR THE NEXT THREE (3) YEARS; INCLUDING AN ALLOWANCE IN AN AMOUNT NOT TO EXCEED $495 PER MONTH, AS REQUIRED, FOR EXCESS COPIES; FUNDS TO BE ALLOCATED FROM SEOPW GENERAL OPERATING FUNDS, "RENTALS AND LEASES," ACCOUNT NO. 10030.920101.544000.0000.00000. File # 11-00453-05-31-2011-Cover Memo.pdf File # 11-00453-05-31-2011-Financial Form.pdf File # 11-00453-05-31-2011-Backup.pdf File # 11-00453-05-31-2011-Backup (2).pdf File # 11-00453-05-31-2011-Legislation.pdf File # 11-00453 05-31-2011-Legislation(Signed).pdf Motion by Board Member Sarnoff, seconded by Board Member Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II, Commissioner Sarnoff and Vice Chair Suarez CRA-R-11-0026 Chair Dunn: All right, next item, resolution 5. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Resolution 5 -- Commissioners, resolution 5 is the renewal of a con -- not a renewal -- a new contract for our copy machine, as you stated Commissioner Dunn. The new contract we're recommending is with Konica Minolta. There will be a 64 percent savings from the current contract that we have with Sharp. That contract is up in the next 30 days, I believe, and I recommend that we approve the Konica Minolta for the copy machine. Chair Dunn: Is there a motion? Commissioner Sarnoff: So move. Chair Dunn: Motion by Commissioner Sarnoff. Is there a second? Commissioner Gort: Second. Chair Dunn: Second by Commissioner Gort. City of Miami Page 25 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Carollo: Mr. -- Chair Dunn: Commissioner Carollo. Commissioner Carollo: Mr. Chairman, thank you. I just -- I see the backup to some of the numberings, and I just don't see how we're coming up with these numbers. It seems to me like for the first fiscal year, it's going to cost us 2,800 if we don't have any excess copies. And then it jumps from -- the first year it jumps from 2,800 to 8,400. Why is that jump? Mr. Bockweg: Well, these are -- these projections that you see here, Commissioner, are based on past copies that were made. I mean, there's no way that we know this for sure, but we, of course, pay a base amount, and on top of that, we pay per color copy and per black and white copy. Commissioner Carollo: Okay. So why the first year, it's going to cost us 2,800, and then it's going to jump the second year to 8,400? Clarence Woods: Because of the fiscal year -- I'm sorry. Clarence Woods, the assistant director of Southeast Overtown/Park West CRA. It's because we're approving it from now until the end of the fiscal year, which is in October. So it's prorated for the remainder of the year. Commissioner Carollo: I see what you're saying. This is from June -- from now to -- so it's for half the year -- Mr. Woods: Yes. Commissioner Carollo: -- more or less. Mr. Woods: Yes. Commissioner Carollo: Now, question. This is 2, 800 for the rest of this year, and then it jumps to 8,400 for year two. Year three is 8,400 again, and year four is 5,600. Now -- and here's my question. Is that for South -- is that for Overtown --? Mr. Woods: It's going to be for all -- Mr. Bockweg: All three. Commissioner Carollo: And now for Omni it's going to be, once again, an additional -- Mr. Woods: Same. Commissioner Carollo: -- 2,800, 8,400, 8,400. So it's really 4,000 whatever, 5,000 something, 16,000 something, 16,000 -- Mr. Woods: Yes. Commissioner Carollo: -- on a copier machine? Mr. Bockweg: Well -- Mr. Woods: Yes. Mr. Bockweg: -- we are basing these numbers, Mr. Chair, on the amount of copies that were made in the past. It is true that there is a cushion in there that is not required, and the reason why these numbers are so high from the past is because in the past, it's my understanding that a City of Miami Page26 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 lot of plans and a lot of copies were made as it was requested by the Board at that time. There is a cushion in here for -- at some point the Board might say to us, I need you to make copies and distribute. I need you to do all that stuff. This is a cushion that allows for that. That doesn't mean that this much money will be spent on copies. In fact, Miguel, if you can talk to how much money was left -- or saved last year. Miguel Valentin: Miguel Valentin, CRA financial officer. In fiscal year 2010, we expended roughly $10,000 roughly for all CRAs. I think he explained everything correctly. In the past, we have had set up an allowance for $1,000 monthly. This is a cushion. It doesn't mean that we're going to be using it. And it is -- Commissioner Carollo: Question: Unless it's per copy, I just heard that there was a 64 percent reduction. If for all CRAs it was $10, 000, how can we, without counting on Midtown, okay -- without counting Midtown, how can then it be $16,800? How did we get a 64 percent savings? Mr. Valentin: Sixty-four percent. What happened is the director, upon giving out the computation, he's taking into consideration the basic cost, which is $125. Mr. Bockweg: That's correct. Mr. Valentin: And the cost that we're paying as of last month, it was $355. Mr. Bockweg: Forty-seven. Mr. Valentin: Forty-seven. Mr. Bockweg: Three hundred and forty-seven dollars. Commissioner Carollo: Yeah, but I mean, it's all irrelevant 'cause, yeah, okay, let's say per copy it's cheaper or so forth, but then you jacked up the amount so much that we're actually paying more. Mr. Valentin: Not really. This is like a cushion that we're having there. It doesn't mean that we're going to be using it. But what happened is let's say that in a particular month we are going to be incurring some -- incurring in a lot of copies. That has happened in the past. Then we need to have that cushion in order to have the CRA not to exceed the threshold that we established on every month. Commissioner Carollo: Okay. So from what you're telling me, when we were paying 64 percent higher, through all CRAs it was $10,000. Mr. Bockweg: No. Commissioner -- Mr. Valentin: No. Mr. Bockweg: -- the 64 percent comes in the monthly charge that Sharp is charging us currently for $347 a month. That's a base amount. That is now $125. A black and white copy is now .005 cents compared to our .009 cents that we are currently paying. So overall there is a 64 percent savings. The cushion that Miguel is referring to is because of past experience when there was an exorbitant amount of copies being made. We are not reaching that now, but if -- but Miguel felt that it was prudent -- and I agree -- that we at least have a cushion in case the Board is requesting us to make additional copies, and then I would have to come back to the Board just to approve monies for additional copies. Commissioner Carollo: Right. But that cushion is at least five, six, seven thousand dollars then. City of Miami Page27 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Mr. Bockweg: But that cushion is the saute today as it was last year -- Mr. Valentin: Yes. Mr. Bockweg: -- and the year before. Mr. Valentin: It was three years ago. Mr. Bockweg: That cushion has never -- this cushion that's here has not changed, whatsoever, from last year or the year before. Commissioner Carollo: The way I see it is if all CRAs, it cost us $10,000, more or less -- I forgot what's the exact amount he says -- $10, 000, and now we're estimating 16,800, either that cushion is way too high -- and it has to be higher because the truth of the matter is that you're saying we're getting a reduction in cost. So that cushion has to be, from what I'm seeing, at least five, six, seven thousand dollars. Mr. Bockweg: It's -- but before it was -- before the cushion was higher because it was also -- well, no. Actually, the cushion was the same. It just didn't seem as high because of our overall monthly cost is now down, but the cushion has not changed forever. Commissioner, ultimately, I agree with you; that cushion is too high. I believe the cushion is $495 per month per CRA. I agree that's too high, but as far as a precaution, that is not money that is being used. It's only allocated for copiers and nothing else. That money is not going anywhere else other than for copy machines and for copies, so that is -- that money is solely allocated for that. Commissioner Gort: What was the total budget last year? Mr. Valentin: It was, more or less, the same amount that we are allocating right now. Chair Dunn: So it was about 24 -- what, 2,400 or a little more than that? Mr. Valentin: I don't understand your question. Chair Dunn: You don't have a number? Mr. Bockweg: What was it? Mr. Valentin: No. Mr. Bockweg: What was the line item budget? How much did we budget for the copy machine last year? Mr. Valentin: I will say close to the amount that we are budgeting right now, maybe higher, a little bit higher. Chair Dunn: Okay, so the budget -- 'cause I made a statement coming in -- the budget -- but we will save 64 percent? I just want to make sure. Mr. Bockweg: We are saving -- Mr. Valentin: Yes, sir. Chair Dunn: Okay. I just want to make sure we -- City of Miami Page28 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Gort: The problem that you have, you're talking about 8,000 and then now you're talking about 10,000. That's the question, right? Commissioner Carollo: Well, it was 10, 000 for all the CRAs. This is -- Mr. Valentin: The actual amount. Commissioner Carollo: -- 8,424 per CRA, so it's actually 16,800. Mr. Valentin: Yeah, because within that 16,000 -- Commissioner Carollo: You got 6,000 buffer. Mr. Valentin: -- we -- Exactly. Commissioner Carollo: Per CRA. So it's $12,000 buffer. Mr. Valentin: You know -- Commissioner Carollo: More buffer than what the actual cost for a whole year for all the CRAs. Mr. Valentin: But what happen is it's very difficult for us to estimate how many copies we're going to be making during a month. I don't know -- we're able to reduce that contingency. Mr. Bockweg: But, Commissioner, that money is not going anywhere. Mr. Valentin: Exactly. Mr. Bockweg: It's just sitting there for copies in case we need it. It's not money that would otherwise be going to a project or be going to a grant. This money is just part of our operational budget. Chair Dunn: Commissioner Suarez. Vice Chair Suarez: I mean, I think his issue has to do with the fact that we're overbudgeting, I guess, is what you're trying to say. So why can't we -- if we're saving money on our new copiers, why don't we also reduce our budget for copiers, and then we can use that money for other CRA-worthy -- Mr. Valentin: We might put it in the budget reserve like we're doing -- Commissioner Carollo: Exactly my point. Mr. Bockweg: But that budget -- that money would go into the operational budget reserve. Mr. Valentin: Yeah. Mr. Bockweg: It will not go into the special revenue budget to go towards projects or anything like that. Just -- Vice Chair Suarez: He's the accountant so -- Mr. Bockweg: I'm sorry? Vice Chair Suarez: I said he's the accountant so -- City of Miami Page29 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Carollo: That's exactly my point. I think we're, you know, allocating way too much, you know. And again, I said the numbers. I mean, I did quick math real quick. We're -- you know, we're having a buffer of $6, 000 per CRA, which is $12, 000, which is more than what we had in all the copiers for all the CRAs in a previous year. And that was -- Mr. Bockweg: Commissioner -- Commissioner Carollo: -- paying a higher price before. So I mean, it -- Mr. Bockweg: -- if you'd like -- Commissioner Carollo: -- this is budgeted wrong. Mr. Bockweg: -- we could split that in half and just have the buffer $6, 000 for all three, and then the remainder go into the operational budget reserve. Commissioner Carollo: I was once told by an attorney that also is a Commissioner that you should never negotiate from the dais, so I don't know what the will of this Board is, but -- Commissioner Sarnoff.- Well, can I ask a question. If the bottom line is you're going from .009 cents to .005 cents, whatever you use is what you use. The money's not going to be lost. It's not going to be stolen. It's not going to be changed. You're just going to a 64 percent cheaper copier. Mr. Bockweg: That's right. Commissioner Sarnoff.- And I could tell you, my experience this year in the private sector, copiers have gone down about 40, 50, 60 percent, anywhere between that number because there are fewer users. And you know, business slowed down, and they had to cut their margins, period Commissioner Carollo: So why are we budgeting so much more for it? Commissioner Sarnoff.- I'm not -- we don't need to. Commissioner Carollo: Exactly my point. We don't -- Commissioner Sarnoff We don't need to. Commissioner Carollo: -- need to. Commissioner Sarnoff.- But -- Commissioner Carollo: That's my point. Commissioner Sarnoff.- -- my point is, it's the per copy charge of this was costing us .09 [sic] a copy. Now it's costing us .05 [sic] a copy. Mr. Bockweg: Correct. Chair Dunn: I don't know if this is -- I just -- we did have a motion and a second. I just want to make sure that -- okay, but I want to make sure each Commissioner or Board members had an opportunity to give input. Commissioner Carollo, is it anything else? City of Miami Page 30 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Carollo: No. I think we need to rework this budget. I think we're budgeting way too much, as I stated. You know, what the right -- Chair Dunn: Okay. Commissioner Carollo: -- amount is and so forth, I'm sorry, I didn't bring my calculator, and I haven't, you know, figured it out. But I could tell you what; we're budgeting way too much for this. William R. Bloom (Special Counsel, Community Redevelopment Agency): Commissioners, without changing your budget, why don't you just approve the leasing of the copier at the prices that the executive director is suggesting, and you don't have to worry today about what the line item budget is 'cause you're not approving the budget today if you amend the amendment -- the resolution. Chair Dunn: Commissioner Suarez. Vice Chair Suarez: I think -- yes. I agree. I think we will do that. I think the issue is -- Commissioner Carollo: Yes. Vice Chair Suarez: -- to him it's important to change the budget. I don't know if it's as important to do it today or the next meeting. I don't know how quickly he wants to do it, and I leave that to his prerogative on that. Chair Dunn: Well, I believe at the end of the day, I think that from the CRA's -- I know from my perspective -- I can't speak for Commissioner Sarnoff, but for Southeast Overtown/Park West, I'd like to go ahead and approve the savings, and then we could adjust the necessary budgets when it's time. Mr. Bockweg: This budget will come before you in July -- Commissioner Carollo: Mr. Chairman. Mr. Bockweg: -- with all the line items. Chair Dunn: Commissioner Carollo. Commissioner Carollo: Yes. I like the recommendation from Mr. Bloom. If we can approve the lower rate and the company, and then come budget time, we can approve exactly what -- Chair Dunn: Okay. Commissioner Carollo: -- the budget is. As a matter of fact, at the lower rate, we've already set a budget for this whole year for copiers, so it should actually come in lower. And if we approve this company at this rate, I think that should be sufficient. And then as far as budgeted amount, we could take that up during budget time. Vice Chair Suarez: I second the motion. Commissioner Sarnoff.- Mover accepts. Chair Dunn: Okay. All right, mover accepts and the second -- Commissioner Gort: No. Wait a minute. That's an amendment to the existing motion. City of Miami Page 31 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Commissioner Sarnoff. Right, mover accepts. Chair Dunn: Okay. Mover accepts. Will the seconder accepts? Commissioner Gort: Yes. Veronica Xiques (Assistant General Counsel): I don't -- Chair Dunn: Okay. Ms. Xiques: -- I wouldn't really say that it's an amendment. The resolution before you -- Chair Dunn: Is what it is. Ms. Xiques: -- is simply -- Chair Dunn: Is what it is, yeah. Ms. Xiques: -- authorizing the executive director to enter into a contract. Chair Dunn: Okay. All right. Ms. Xiques: The things that stem from the money spent are what will come to you later. Chair Dunn: There's a motion by Commissioner Sarnoff, seconded by Commissioner Gort. All in favor, let us hear by saying Eye." The Commissioners (Collectively): Aye. Chair Dunn: Okay. Commissioner Carollo: Hold on. Before I say 1:b2e,'7 just -- Could you repeat that again, Ms. Xiques? I want to make sure that we're not tied to these amounts that we have set here as far as funding. Ms. Xiques: Well, you're not tied into them at funding, no. This is -- he's going to enter into a contract for this amount. If he doesn't spend the amount, if you don't fund the amount, then it doesn't matter because the contract really is going to be for the amount that he spends on copies. That's what is going to come out of his budget at the end of the day. All you're authorizing him to do really right now is enter into a contract with this company. The numbers that are in the resolution are the absolute ceiling. It doesn't mean you're budgeting that. It's the absolute ceiling. When you come down and review the budget, you will look at whatever line item, and you will say, yes, I agree with this; no, I don't agree with this. Commissioner Carollo: And just to ver, we're not approving those absolute ceilings. Mr. Bockweg: Our budget has already been approved by the Board as far as the copies are concerned and all that. This is just entering into an agreement with the new copy machine vendor. Commissioner Carollo: Okay, aye. Chair Dunn: All right, resolution -- City of Miami Page 32 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Priscilla A. Thompson (Clerk of the Board): If yore can -- Chair Dunn: -- I believe -- Ms. Thompson: I'm sorry. Chair Dunn: I'm sorry. Madam Clerk. Ms. Thompson: Do you want to register your vote? Commissioner Carollo: Hmm? Commissioner Sarnoff. He did Commissioner Carollo: I did Ms. Thompson: Oh, I'm sorry. So that's a 5-0. Commissioner Sarnoff. Correct. Ms. Thompson: Thank you. 6. CRA RESOLUTION 11-00455 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 TO EXCEED $322,317, TO URGENT INC. FOR THE SUMMER YOUTH EMPLOYMENT PROGRAM IN COLLABORATION WITH MIAMI DADE COUNTY PUBLIC SCHOOLS NATIONAL ACADEMY FOUNDATION; 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 # 11-00455-05-31-2011- Cover Memo.pdf File # 11-00455-05-31-2011-Financial Form.pdf File # 11-00455-05-31-2011-Backup.pdf File# 11-00455-05-31-2011-Legislation .pdf File # 11-00455 05-31-2011-Legislation(Signed).pdf Motion by Board Member Carollo, seconded by Board Member Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo and Chair Dunn II Absent: Commissioner Sarnoff and Vice Chair Suarez CRA-R-11-0027 Chair Dunn: Resolution 6. Clarence Woods (Assistant Director, Community Redevelopment Agency): Good morning -- I City of Miami Page 33 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 mean, good evening, Board members. Resolution 6 is 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 to exceed $322,317, to Urgent, Inc. for the summer youth employment program in collaboration with Miami -Dade County Public Schools National Academy Foundation; 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. Some history on this particular program: We -- this program started three years ago. This would be the third year of the program where the CRA basically sponsored jobs for youth in both CRAs, Southeast Overtown/Park West as well as Omni. The first year we only had 80 participants. Last year, due to the overwhelming nature of the responses that we got from the advertisement, we had over 600 kids come out to -- come out for 80 slots. The Chair thought it wise and prudent to increase that, so we went from 80 to 160 kids getting opportunities for jobs during the summer of last year. This year we're looking to do the same exact thing. We've formed -- along with the grantee, or who we're looking to grant the funds this year, they formed a collaboration with Miami -Dade County Public Schools, and we look to utilize them in putting on this grant program for the summer. If you have any questions, we can answer those. Chair Dunn: Before you -- let's allow, I guess, the public hearing first and then -- Are the grantees here? If they would come and speak. And then this is a public hearing. It's open to the public. Please state your name and your address as you come to the podium. Saliha Nelson: Hi. Saliha Nelson, 1600 Northwest 3rdAvenue, Building D, 33136, also known as the Culmer Service Center. Hi. I'm here on behalf of Urgent, Inc. We are a community -based organization here with offices in the Overtown community. We were established in 1994 and have been operating here for the last 15 years. We are a staple provider of youth programming, and our mission -- which I'm very proud as we just went through a strategic planning process and so I'm unveiling our new mission to you -- our new mission is to empower youth, empower young minds to transform their communities. And we do this by promoting shared leadership. And by shared leadership, we mean all of you in this room, as well as our kids, through education, empowerment, engagement to create collective well-being because it is the collective well-being that makes our communities prosper and grow, and we need your help with that. And as you make your decision tonight to fund this program, I would like for you, as you count dollars and cents and even pennies, I would like you to put a face to those pennies, and it is the face of our youth that we need to invest in. And I'm from the understanding that no amount is too much. No amount is too much to invest in the youth in this community. They deserve a significant investment, more than what's happening here tonight. They not only invest dollars and cents, but time. And through this program, through time and investment, we are asking the community to invest their time to mentor these young men and women. They are providing an invaluable in -kind service to not only Urgent, Inc., not only the kids, not only the City of Miami, not only the Community Redevelopment Agent [sic], but the whole community. Because when we invest in our youth, we win. There is no loss in investment. There is no loss when counting pennies. Because when you have the youth here who can contribute back to their community, we all win. And so as you count pennies, know that no investment is too small when we take the youth into account of our decisions. And so as they are prepared to speak to you tonight, I hope that you heed the call to make this investment and not only for the youth -- 'cause I know you're going to talk about salaries and everything like this too -- but what I would also like for you to take into account that it's not only the investment that's going directly to the youth and their families in this community, but those that we employ through Urgent, Inc. You are employing City of Miami residents. You are employing residents of this community. So when you say, cut them a dollar, you're cutting their family. When you say, cut 50 cents, maybe they can't afford the gas. So when you think of the high gas prices and you want me to cut salaries, think of the gas prices. Think of how much it costs to buy food for our families now. We need to not only invest in our kids, but we need to invest in the families, and we need to invest in the adults in this City of Miami Page 34 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 community to support their own families as well. And -- 'cause I know there are some issues with indirect costs -- you have to support the organization because it is the organization that is the vehicle for jobs and economic growth in this community. We are an economic product in the Overtown community. And so when you invest in our organization, you are also investing in the community, kids, youth, and families. So I'd like for you to take all of that into account as I turn it over to our kids. Tanisha Fleming: Yes. Good evening. My name is Tanisha Fleming. My address is 423 Northwest 7th Street. I'm here to speak of the benefits on the youth behalf. As with the summer employment for the youth, it allows us to experience different fields of careers. Maybe as a kid, when you guys were kids, you all wanted to be probably an astronaut, a president, something. As you grow up, ideas changes -- ideas always change. But when you really get down into the process of what you really want to be, sometimes you don't agree with it at times. With this program, it allows us to experience different types of careers to the point that we have more than one option. It allows us to like be open-minded to the point that the children are the future. And if we are the future, we need to know whether or not -- if we're going to be doctors, lawyers, commun -- excuse me. I'm kind of nervous. Chair Dunn: That's okay. You're all right. You're doing fine. Ms. Fleming: -- to the point of either lawyers -- Chair Dunn: Say accountants. That might help you. Commissioner Carollo: CPAs (Certified Public Accountants). Ms. Fleming: -- accountants -- it does. Chair Dunn: Add that -- throw that in there. Ms. Fleming: -- attorneys, entrepreneurs, artists, anything of some sort. The children are the future, and we don't fund our future where -- we don't know where that will lead us, our future. Our future -- letting us having our future allows us to be either doctors, lawyers, teachers, or whatever. This summer internship allows us -- will give us a guarantee that we learn and experience those careers and their fields hands on and experience on. And the support of our community, youth need -- that the youth need to know is that our future is being supported, and we can explore careers and have options to establish a career. Chair Dunn: Very good. Ms. Fleming: Thank you. Chair Dunn: I want to -- Give her a hand. Applause. Chair Dunn: I want to say to all of our speakers, one of my colleagues says oftentimes that sometimes be careful. Don't snatch victory out of the jaws of defeat. So if you just kind of state your name, tell us, you know, the impact. But thank you very much. Come right along. Yelena Stewart Revere: Good afternoon. My name is Dr. Yelena Stewart Revere, from Booker T. Washington Senior High, smaller learning community coordinator. This summer internship program would mean a lot to the students at Booker T. Washington Senior High that live in your areas, because it will give them the opportunity to take what they're learning from the classroom and take it to the boardroom. They need to have an internship in order to be program City of Miami Page 35 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 completers, which I don't think any of you know what that means. You have to complete a series of classes and do a practical experience, and that would allow them to apply for the Florida Vocational Gold Seal. They cannot do that without having completed the internship. So every kid needs to complete an internship in order to move on to the second level of their life. And without the funding, it would kind of hurt the process of what we need to do. And I have two students here that could tell you what the internship mean to them. Jamesha Hall: Hi. My name is Jamesha Hall. I'm from Booker T. Washington. I live on 1091 Northwest 7th Court. And the internship means to me a learning experience out of school to the job, and it teaches us of hands-on experience and what we need to better our future and further our careers and whatever we decide to be. Chair Dunn: Thank you. Okay. Applause. Tanisha Bennett: Hello. My name is Tanisha Bennett. I'm from Booker T. Washington Senior High school also. And my address is 268 Northwest 11 th Street. And to me this internship means a way to become more wise and more mature and to know what to expect after high school and that's about it -- and a way to help out my single mom. Applause. Linda Jones: Hello. My name is Linda Jones, address, 529 Northwest 19th Street. I'm a part of Urgent, Inc. My program is grandparents and parents raising grandchildren. And under the umbrella of Urgent, Inc., the grandparents that's raising those grandkids get an opportunity to further their internship that the young ladies were talking about, and those jobs are very much needed because they're on such a limited income. And I work with that, and I help get the girls placed in the different job sites that they are on, and they have learned such a lot, and they will learn even more if we can continue this program. Thank you very much. And I do sit on the Board of Legal Services of Greater Miami, and I have kids that work there too. Thank you very much. Chair Dunn: Okay. Leroy Jones: Leroy Jones, Neighbors and Neighbors Association, 180 -- Commissioner Gort: You're not one of the students, are you? Mr. Jones: What did you say, Commissioner? Commissioner Gort: You're not one of the students, are you? Mr. Jones: I don't want to be that young no more. It's too tough for them. It's too tough for kids nowadays. It's tough for kids. I don't want to be that age no more. It's too tough for 'em. Leroy Jones, Neighbors and Neighbors, 180 Northwest 62nd Street. I'm here of support of Urgent, Inc. and the summer job program. One, because I know that Urgent, Inc. is going to do a wonderful job. They have experience. That's the first thing. The second thing is that, you know, now with the kids that they're going to be dealing with, I'm sure a lot of the parents is probably not working or don't have the financial wherewithal to support these kids in going back to school. So this summer program not only going to affect that kid that enter into the program, but the overall household. The overall household is going to benefit froin it. You know, I had a summer job when I lived in Overtown for Team Clean, cleaning up the streets. And let me tell you, if it wasn't for that summer job, I know my mom couldn't afford our summer school clothes that year, so that program really helped us. You know, I want to say, when you look at the cost of what City of Miami Page 36 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 they're asking for this program, that's like one administrator for 30 kids. That's a lot of kids to be supervising. And going to the fact of not just having the kids there, but you want the kids supervised. You want that administrative person to be able to go there at least three times, maybe two or three times a week to that job site to make sure that the kids is doing what they supposed to be doing. You know, it's a lot of work that go into this. You got to make sure that the business that they being place have insurance, you know. You got to make sure -- you know, all those grounds got to be covered, so it's not just having money and applying a kid to a summer job. It's a whole lot got -- I'm sure they're going to do some research after the end and make sure they do a follow up to make sure how the kids benefited. So it's a lot that's going into this, so I think that's a small sacrifice. That's a very small price to pay based on all the work that's going to have to go into this, because you're talking about young adults in most cases that don't have no job experience that has to get it. Chair Dunn: We got it. Trust me, we got it. Mr. Jones: Okay? Thank you. Chair Dunn: We got it. Trust me, we got it. Should kind of wrap it up. We got it. We got it. Al Hardemon: Good evening. My name is Al Hardemon. My business that I'm associated with is 1141 Northwest 1st Place. Hopefully, with the help of Mr. Woods and the Commission, we going to build our own development of apartments, our own development at 1141. But I want to turn this around because the week that those kids take that check home with y'all name on it, woo woo. School clothes going to be paid. Mama ain't going to be mad. Daddy ain't going to be mad. Girlfriend going to love it. Them kids going to remember you for the next 25 years. Keon Hardemon, he's an attorney with the Public Defender's Office. Same program we talk about here, same style. Xavier Suarez -- you was a shorty then. You were hanging out. He's an attorney right now off that same summer school money. So when you have an opportunity -- and I want y'all to really understand this. Commissioner Sarnoff, when they get mad at you talking about what you won't do for the community -- Commissioner Sarnoff Who gets mad at me? Mr. Hardemon: Well, you understand. I mean, what I'm saying -- Commissioner Sarnoff Oh. I didn't know people got mad at me. Wait a minute. I thought I was loved out there. Mr. Hardemon: Well, you are. You get hugs sometimes. But here is the big fight that you're actually starting here. You're saying you're not going to have to be a watch out on that corner. You not going to have to go put a ski mask on. This summer, you got a job. Now those who needed those 120 kids to be watch out, to go boost out a store, ruin their lives, now you -- they're mad at you. That's the ones that are mad at you, but the community actually thank you. You took 120 jobs away from someone else who probably see life in prison if they would have accepted that job. So I want you to think of it that way. Chair Dunn: Thank you very much. Last -- this is the last -- oh, one more. The -- let the young man go before you, and then we'll wrap this up. Santana Tooks: Hello. Santana Tooks, 1027 Northwest 1st Court. I think this program is essential simply because it allows for work experience, number one. And then it helps us transition into benevolent leaders. We are more than just children, but I believe to transition from a child into an adult, you know, you need to start somewhere and what better way to start with a job. You know, it's a sad reality that a lot of us are living in poverty, so this would, you know, release some of the financial burdens of the single parents, the mothers, the fathers, the -- City of Miami Page 37 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 like my sister, you know, so that relieves the burden of, you know, her. She don't have to worry about me, you know, what I'm going to wear to school the next year or something to eat because, you know, I have my own. Andl think this is just an essential program for us to grow as individuals, as children into adulthood and, you know, young teenagers and things of that sort, so I think it's essential, and it's very important to me and a lot of others. Chair Dunn: Thank you. Give him a hand. Applause. Chair Dunn: What school do you attend? Mr. Tooks: Well, actually, I just recently moved down. I stay with my sister, well, across the street now, but I graduated already. Chair Dunn: Okay. How old are you? Mr. Tooks: I'm 17. Chair Dunn: Oh, wow. Give him another hand. Sharp young man. Applause. Chair Dunn: Okay, Mr. Washington. Thank you. Emanuel Washington: Gentlemen, Emanuel Washington, 155 Northwest loth Street, property owner. I'm also the executive director for the Overtown Community Optimist Club, and I also run the chief operating office of South Florida Veterans Services. But I just wanted to come today -- first of all, I just want to say, Commissioners and CRA, that I applaud you. I applaud you, first of all, for having the vision to understand that job development and especially job development in the area of youth is very important. So that I just want to first say -- I want to applaud you for it. And just to lay out a fact that the cost of incarceration these days -- and of course, you heard it allude to in some of the speeches prior to me -- the cost for incarceration for a child or a person is about $50,000. And the monies that you're spending here, this 322, 000, is priceless. I mean, because we'll either spend it this way or well spend it another way. Because Lord knows that if those children don't have an opportunity to work, they will do something to get money, and the alternative will end up them in prison, which will cost us even more. Also, the -- I'd like to applaud Urgent, Inc. for their collaboration with the School Board, andspecifically the National Academy Foundation, because that academy, just like you have different strands in law -- we have the academy downtown doing the law. Carol City does a law program. Northwestern have a medical magnet. -- they have a finance academy. And financing is something that most children don't get an opportunity to understand. And I know that a part of this program is to give them a better understanding of money. They're going to get that check and go buy school clothes. But at the same time, they'll get a chance to understanding budgeting and some basic principles that most of us don't understand even as adults. And for the children to get that now I think is important. And last, but not least, this is a grand opportunity for a career path. It'll give kids an opportunity not only to learn what they want to do but what they may not want to do. Thank you. Chair Dunn: Thank you very much. This closes our public hearing. Commissioner Sarnoff. I mean, Commissioner Suarez. Commissioner Sarnof That was cool. I like that mistake. Chair Dunn: That was nice. City of Miami Page 38 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Vice Chair Suarez: Thank you, Mr. Chairman. First of all, I want to thank the executive director for meeting with me on this program and making some changes on the basis of some concerns that I had in reducing the total amount. And I also want to thank Urgent, Inc. for voluntarily making some reductions in some of their administrative costs, and that's really the only concern that I have. I think obviously employing 160 youth in our community is a wonderful thing, you know. I agree with all the statements that were made in reference to that. I think it's a very small amount of money, you know, to put these children or young adults in a productive use of their time. But I do have some concerns, and I wanted to express some of them. You know, how do we, as a Board, feel comfortable or confident that we are getting the best bang for our buck in terms of you know, reducing the administrative cost versus costs that are actually going, you know, to the students themselves? We could have -- you know, and the Vice Chairman has made this issue -- has brought up this point on other issues specifically relating to Community Development Block Grant. Sometimes when you are able to squeeze the cost of a program as much as possible, you're able to increase the benefit, so that's one issue that I had. The second issue is are the people who are involved in this who are working, not -- obviously, we know the youth are going to be from the -- I'm assuming they're going to be from the Omni CRA -- I'm sorry, from the Overtown CRA area. That's a condition. But are the people who are working also going to be from the Overtown CRA area? In other words, the ones who are going to be administering this program, because I think that would be another worthy condition that you're -- you know, when you talk about getting jobs to people who are then mentoring our youth in this area, we want those people to hopefully come from this area as well and enjoy the benefits of that. Andl think that's what job creation under, you know, the CRA guidelines envisions. Mr. Woods: Anything else? Chair Dunn: I know I heard -- it was two -- let me apologize to you, Commissioner Suarez. I know you -- those were concerns I know you said that you had. Now what are the ones that you still -- are there any that -- (UNINTELLIGIBLE) been resolved? Vice Chair Suarez: No. I still have those concerns. Mr. Woods: Which ones? Chair Dunn: Okay. Vice Chair Suarez: My question -- my first question is, are the people who are going to be employed by this program, are they going to be Overtown -- within the Overtown CRA boundary, the employees of the program? Mr. Woods: The actual employees themselves, that actually was not a stipulation of the grant, although there are some employees that are from within Overtown, but then there are -- there will be an opportunity for others to apply for some of the -- well, I think it's 11 positions that you guys have. They will have an opportunity to apply. But that was not a stipulation or a condition of the grant, that the administers of the program be from Overtown. We were strictly concerned with the kids. Chair Dunn: But if I may -- 'cause I think -- but Urgent, Inc. is located -- Mr. Woods: Is located in -- yeah. Chair Dunn: -- is in Overtown -- Mr. Woods: It is. City of Miami Page 39 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Chair Dunn: -- and has been for how many years now? Ms. Nelson: Fifteen. Chair Dunn: Fifteen years, so they have -- they're what we will consider stakeholders, 15 years. Vice Chair Suarez: I guess my second question is -- so that's the answer to my first question. My second question is, you know, how do we get a sense of comfort --? When we first brought up the issue of the administrative costs being a little bit excessive, immediately -- and to their credit, Urgent, Inc. came back with a much more detailed, by the way, analysis of the cost and a reduction in their cost. And so how do we -- you know, wanting to do the most beneficial program for the youth in our community, how do we know that we're getting, you know, the best mixture of beneficial -- you know, money that's going actually to benefit the youth versus money that's being spent on this program? Mr. Woods: Well, when you look at the value for the administrative expenses -- I think Leroy kind of alluded to some of the different areas where we're trying to compensate those that are working on this program. You're talking about 160 kids, 11 workers. They have to find 160 jobs for these kids. The workers are going to have to find 160 jobs for these kids. In some cases, they may be in the same location, but by and large, for the most part, they have to -- I mean, it's going to be a real labor intensive program. And after running it for the last two years, we found -- I mean, even on the CRA staff, there is a lot that goes into this program with the whole aspect of monitoring, compliance, in order for us to go ahead and cut checks, all of the eligibility requirements. It's truly labor intensive. I don't know if that -- when you talk about the actual amounts that's been allocated to the administrative expense, if you're talking about the per hour cost, you know, that might be up for debate. You do have a professional staff that -- Vice Chair Suarez: Well, I can give you one idea here. The internship coordinator, I was told, was going to be on for eight weeks at -- there's two of them -- 16,800, which means that -- it says here ten weeks, but I was told it was eight weeks 'cause the first two weeks had to be the process eligibility -- I'm sorry, the program eligibility process takes two weeks, so it would be eight additional weeks or eight remaining weeks for the internship coordinator who will be making about $4,200 for -- per month for the two months. Mr. Woods: Well, let me address the issue relative to the kids. I mean, I know you're talking about trying to strike a balance between how much you're giving administration and how much you give the kids. The kids' salaries are basically set -- I think the kids that are in school are receiving minimum wage, which is 7.24 -- 7.31 an hour. The college students are receiving $9.40. So basically, that's set. With respect to the actual administrators, as I mentioned before, there is -- they have a professional staff that I think is commiserate with some of the other programs when you're talking about hiring staff for programs like these. So their time as well as their rate is -- okay. Saliha just wanted me to make mention that all of the rates are less than what we paid last year. There's a savings there. But the rate, as well as the time that they're going to be spending with these kids, we believe that it is commiserate with what is paid out for programs like this for professional staff. Vice Chair Suarez: I think everyone knows that this Board and the City has been paying less than what they paid last year. I mean, that's something that we have been doing universally. I don't know if anyone else has any issues. Chair Dunn: Anyone else? I think if -- no. The public hearing is closed. I think any -- the public hearing is actually closed, unless the Board chooses to call someone up to -- and this issue is directly involving Ms. Nelson, so that's why she's being called up to respond. I believe this program was sort of borne out of the problem that we had with South Florida Workforce, just to give a little historicity to it prior to my coming on this Board. But there was a tremendous bag City of Miami Page 40 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 -- and I shouldn't use that term -- bill that the City got stuck with because there was an agreement -- I don't know, agreement, alleged agreement, that was supposed to take place between the City and the South Florida Workforce and it did not happen. And so as a result, there was a void left for summer youth -- Mr. Woods: Yes. Chair Dunn: Am I correct? Mr. Woods: Yes. Chair Dunn: -- employment. This was prior to my coming on board. However, the program was already in existence the year prior to me coming on. Last year was the first year. And I just - - I mean, I believe the nuances and the -- some of the issues can be worked out. But I think in terms of the relevancy and the necessity of it -- I just did a little research on a couple of things, the ICF (Inner City Fund) International presidential transition gave a report that basically stated - - and this is documented -- that more recently the Center for Labor Market Studies found that the benefits of early employment are considerable and lasting, particularly for young men who do not plan to attend college immediately. These benefits include a smoother transition to the labor market and higher weekly and yearly earnings for up to 15 years after graduating from high school. Listen to this. There's even some evidence to suggest that young people who work are less likely to drop out of high school than those who don't have jobs. So I believe that it's important to bring that out. Also, King County, in Seattle, Washington, had a program that also showed how this -- the summer youth program, particularly in low-income areas, had a tremendous benefit. So I guess -- Are there any other questions from my colleagues? Is there a motion? Commissioner Carollo: So move. Chair Dunn: Moved by Commissioner Carollo. Is there a second? Commissioner Gort: Second. Chair Dunn: Second by Commissioner Gort. All in favor, let us hear by saying aye." The Commissioners (Collectively): Aye. Chair Dunn: So move. Now we're going to take a break. What do we call this, Madam Clerk? Not a break, but -- what do we call it, technical? Commissioner Gort: Move to adjourn. Pieter Bockweg (Executive Director, Community Redevelopment Agency): I think -- Priscilla A. Thompson (Clerk of the Board): If you are finished with the SEOPW (Southeast Overtown/Park West) meeting, you can adjourn the SEOPW meeting, and we'll roll over to your next meeting, whichever one you're going to call. Chair Dunn: Is there a motion to adjourn this meeting? Vice Chair Suarez: So move. Chair Dunn: Moved by Commissioner Carollo. Commissioner Gort: Second. City of Miami Page 41 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 NON -AGENDA ITEMS NA.1 11-00501 Chair Dunn: Second by Commissioner Gort. Mr. Bockweg: Madam Clerk, before -- may I -- Madam Clerk, before you cancel the -- I believe it's the wish of the Chairman of the Omni CRA to move the Omni CRA meeting to the June 9 Commission meeting. Ms. Thompson: Wait, wait, wait. Commissioner Carollo: So move. Ms. Thompson: Wait, wait. Wait, please. Please, okay. Are -- you are now in your Southeast Overtown/Park West meeting. You have made a motion, a second to adjourn that meeting. CRA DISCUSSION BRIEF DISCUSSION BY CHAIR DUNN SHARING FAVORABLE MEDIA COVERAGE OF THE COMMUNITY REDEVELOPMENT AGENCY IN THE EDITORIAL BOARD COLUMN OF THE MAY 30, 2011 EDITION OF THE MIAMI HERALD. File#11-00501-05-31-2011-Editorial Submittal.pdf DISCUSSED Chair Dunn: Before we move on, I think it would be -- I would be remiss ifI did not share a very encouraging editorial that is not oftentimes that we get favorable news coverage. But I do believe any time we do, particularly when it's done by the editorial board of the Miami Herald, it's newsworthy. So I would just like to -- I don't know if I need to submit this to you, Clerk. I want to share this with my colleagues. It's entitled by the Miami Herald editorial on yesterday -- today, actually, Tuesday, May 31, A Promising Lesson Plan. "And amazingly, it deals with our opinion -- school district, CRA take innovative approach to reenergizing -- or to reenergize Overtown. And it's talking specifically to -- in reference to the Frederick Douglass Elementary school. And I think that in your own time, if you would read it, it certainly sort of says that we're on the right track, and it spells out some of the things that we've already talked about in our last meeting. I guess we need one for the record here, Madam Clerk. But it does spell out in detail some of the things that we are in the process of looking at. And we have authorized our executive director, Mr. Bockweg, to move forward in terms of trying to reach some type of an agreement or settlement and then bring it back to this respective board. But it kind of outlays and outlines some of the key areas and how there is, in fact, connectivity to this as it relates to blight and poverty because, you know, in many ways it serves as a preventative measure. And before you go, Chelsa, one other point. I do want to commend our executive director for taking some painstaking efforts to save dollars. I want to commend you. It may seem small, but it does add up. Was able to save approximately 64 percent for our copier. We're now using another copier and will save the CRA 64 percent. I know that's music to your ears, Commissioner Carollo. Commissioner Carollo: We're not there yet, though. Chair Dunn: Also, street lighting maintenance, we're saving approximately 54 percent. And when you tally all of this up, it can add up to a few dollars, in the thousands. But I think what's most significant about this whole effort is that, for the most part, the CRA has been operating at about 2 percent of our budget when, in fact, we're allowed up to 20 percent. So I just wanted to highlight that and commend you publicly, Mr. Bockweg, for being frugal because this is the task City of Miami Page 42 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 Motion to Adjourn that this Board has said, unequivocally, that we want to see not just in the CRA but in all areas of the City. But certainly, we thank God; any time we can have some good news, it's good news, especially for Overtown. And then we are in a position now to hopefully, when done properly and done correctly, make good on the promises that this area has been made throughout the years. And so this is a -- if you have not had a chance to read it today, it's in the Miami Herald editorial. Editorials from the Miami Herald are not easy to come by, so we want to say thank you for them looking at it objectively. Chelsa. Commissioner Gort: You have to frame it. Chair Dunn: Yes, Commissioner Carollo. Commissioner Carollo: I yield to Commissioner Gort. Chair Dunn: Commissioner Gort. Commissioner Gort: No, that's all right. Chair Dunn: No, go ahead. Commissioner Gort: No. I just said you got to frame it. Chair Dunn: Listen, guys, I didn't say that. That was the Chairman. No, I'm just kidding. Commissioner Carollo: Thank you, Mr. Chairman. Chair Dunn: Thank you, Commissioner. Commissioner Carollo: I did -- I actually did read the article, and I'm happy to have been part of that vote. It was a unanimous vote by all the members I think were present at that time. The one thing that I do want to point out is that they mentioned that it should be with regards to a loan -- Chair Dunn: Yes. Commissioner Carollo: -- okay. So I just want to point that out that they recommend that it should be a loan, and I'm in agreement with that. So -- Chair Dunn: Yeah. Commissioner Carollo: -- just for future references. Thank you. Chair Dunn: Absolutely. Yeah, absolutely. I think -- I know in our last discussion that was one of the points that Commissioner Gort brought out that this was -- we wanted to be clear on it so Commissioner Carollo: Good. Chair Dunn: -- thank you. Anyone else? Okay. A motion was made by Commissioner Carollo, seconded by Commissioner Gort, and was passed unanimously, with Vice Chair Suarez and Commissioner Sarnoff absent, to adjourn today's meeting. City of Miami Page 43 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes May 31, 2011 City of Miami Page.I.i Printed on 11/22,2011