City of Miami. City Hall 3500 Pan American Drive Miami, FL Meeting Minutes. Thursday, October 14, :00 PM or thereafter

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1 City of Miami City Hall 3500 Pan American Drive Miami, FL Meeting Minutes Thursday, October 14, :00 PM or thereafter Miami City Hall 3500 Pan American Drive Miami, Florida SEOPW Community Redevelopment Agencies Richard P. Dunn II, Chairman Francis Suarez, Vice-Chairman Marc David Sarnoff, Commissioner Wifredo (Willy) Gort, Commissioner Frank Carollo, Commissioner ************************** CRA OFFICE ADDRESS: 49 NW 5th ST, SUITE 100, Miami, FL Phone: (305) , Fax: (305)

2 INVOCATION AND PLEDGE Present: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Vice Chair Suarez and Commissioner Carollo On the 14th day of October 2010, the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency of the City of Miami met in regular session at Miami City Hall, 3500 Pan Amerian Drive, Miami, Florida. The meeting was called to order by Chair Dunn at 6:33 p.m. and was adjourned at 9:45 p.m. ORDER OF THE DAY FINANCIALS ALSO PRESENT: Pieter Bockweg, Executive Director, CRA Clarence Woods, Assistant Executive Director, CRA Julie O. Bru, General Counsel, CRA Veronica Xiques, Assistant General Counsel, CRA Priscilla A. Thompson, Clerk of the Board Chair Dunn: Good evening. I want to apologize for the delay. We're going to call this portion of the CRA (Community Redevelopment Agency) Southeast Overtown/Park West meeting to order. I'm going to ask my colleague, Commissioner Gort, if he would lead us in a word of prayer. Invocation delivered. Commissioner Dunn: Followed by the pledge of allegiance by Vice Chairman Carollo. Pledge of allegiance delivered. Chair Dunn: All right. We're going to go to Item 2 or resolution 2, and then we'll come to the financial summary because there are issues such as the wage modification and budget review, which we'll actually take 7 before 6, and then we'll have the financial summary last because it will have an impact on the decisions that we make. 1. CRA REPORT FINANCIAL SUMMARY THROUGH SEPTEMBER 30, File Financial Summary pdf PRESENTED Pieter Bockweg (Executive Director, Community Redevelopment Agency): Well, the financial summary we've already discussed. Chair Dunn: Yeah. We need -- Priscilla A. Thompson (Clerk of the Board): No, no. Mr. Bockweg: No, we haven't? Chair Dunn: No. We need to -- financial summary and then -- City of Miami Page 2

3 Miguel Valentin (Financial Officer, Community Redevelopment Agency): Yes, sir. Ms. Thompson: Okay. If I might -- Mr. Bockweg: Oh, I'm sorry. Item 1. Chair Dunn: One second. Ms. Thompson: I'm sorry, Chair. Chair Dunn: Go ahead, Madam Clerk. Ms. Thompson: I just want to make sure. You have gone ahead and deferred item 8. You're now on item 1. Mr. Bockweg: That's correct. Commissioner Sarnoff: What happened to 9? Commissioner Carollo: Yeah. Ms. Thompson: I don't think they've -- you've brought that up yet. Mr. Bockweg: It's coming, Commissioner, 'cause we -- Commissioner Sarnoff: Okay. Mr. Bockweg: -- skipped over item 1 on the agenda, the financial summary. Chair Dunn: So that will be 9, okay. Do we need to make a motion to defer that, Madam Clerk? No? Okay. Mr. Valentin: Miguel Valentin, CRA financial officer. I'm going to be presenting the combined statement of financial position for the Southeast Overtown/Park West as of September 30, The total cash balance is 24,689,169. Aside from that, I wanted to put on record that in light of the fact that you ratified Pieter Bockweg salary since he was appointed up until today, then there is nothing else to report to the board. Commissioner Carollo: Mr. Chairman. Chair Dunn: Go right ahead, Commissioner Carollo. Commissioner Carollo: Thank you. Something that I want to point out. For 2010, we've budgeted what amount for community redevelopment expenses? Mr. Valentin: The carryover fund balance? Commissioner Carollo: No. What did we actually approve? And what I'm getting at is what we're approving and what we're actually using for projects and you now -- Mr. Valentin: You're looking at page number 2? Commissioner Carollo: Yes. City of Miami Page 3

4 Mr. Valentin: Well, every -- this is the lump-sum amount, but the entire budget for fiscal year 2010 was for 27,321,927 in total. Commissioner Carollo: For projects. Mr. Valentin: For projects and everything. Commissioner Carollo: And how -- and out of those 27 million, how many was used, actually used for projects? Mr. Valentin: I will say at this point -- well, as you see here -- and this is -- those -- this number right here is not being audited yet. It's going to be 3.5 million. However, let me stress this out, most of that amount is being allocated toward projects either through resolution or through projects that still they are pending to obtain a resolution from the board. I'm able to provide you a breakdown as to how I've been allocating that amount of money. I think if you make reference to the budget that we attach at the very end, you will see -- Commissioner Carollo: I don't have it. Mr. Valentin: I think you do, sir. Let me -- Commissioner Carollo: Where? At the end of 1? Commissioner Gort: These are restricted funds. Am I correct? Mr. Valentin: Yes, sir. Commissioner Gort: They've been allocated to different projects -- Mr. Valentin: Exactly. Commissioner Gort: -- that are still to be done. Mr. Valentin: Exactly. And if you want me, I'm able to come up with the entire list as to how I've been allocating those funds. As you know, CIP (Capital Improvements Program) Department is managing our projects. Still, they haven't exhausted all the funding that we have allocated. But if you make reference to the list that I just mentioned, you will see as to how I've been allocating the funding according to the resolutions that the CRA Board had approved. Commissioner Carollo: I'll review it. Mr. Valentin: Okay. Commissioner Carollo: You know, I'm not going to hold up, you know, this board or -- I think we still have other items that we need to go over, not necessarily with this CRA Board but with the Omni and Midtown, so I'm not going to hold you over. But the bottom line is that, you know, we're approving a lot more for the projects than we're actually, you know, expensing [sic] or doing. And I guess with this additional information, I need to look at it, to be honest with you, but it's somewhat deceiving because I'm seeing the 27 million budgeted and I'm seeing actually expense 3 million or so forth. Mr. Valentin: Yeah. But the 27 million has been allocated accordingly. I will meet with you and I will show you everything -- Commissioner Carollo: Please do. City of Miami Page 4

5 Mr. Valentin: -- that you want. Commissioner Gort: Now make sure you send copy to all the Commissioners. Mr. Valentin: Will do, sir. Chair Dunn: That does -- Commissioner Gort: Need a motion. Chair Dunn: Yeah. Is there a motion? Go ahead, Commissioner Carollo. Commissioner Gort: Move it. RESOLUTIONS 2. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE RENEWAL OF THE CRA'S COMMERCIAL GENERAL LIABILITY, PROPERTY, AND WORKERS' COMPENSATION INSURANCE COVERAGE, FOR AN ADDITIONAL ONE-YEAR PERIOD, THROUGH BROWN & BROWN OF FLORIDA, INC., IN AN AMOUNT NOT TO EXCEED $10,723; ALLOCATING FUNDING FROM SEOPW GENERAL OPERATING FUND, ACCOUNT CODE NO File Cover Memo pdf File Financial Form pdf File Backup pdf File Legislation pdf File Legislation (2) 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, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and Vice Chair Suarez CRA-R Commissioner Gort: Item 2. Chair Dunn: All right, resolution 2, reviewing insurance coverage. Unidentified Speaker: I'm sorry. Chair Dunn: Wait a minute. Did we do the --? We can do the financial summary, right? Pieter Bockweg (Executive Director, Community Redevelopment Agency): No, we didn't. Chair Dunn: We need to do -- Mr. Bockweg: We need to do that as well. City of Miami Page 5

6 Miguel Valentin (Financial Officer, Community Redevelopment Agency): I will do it at the very end. Chair Dunn: Okay, okay. Mr. Valentin: Okay. A resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency authorizing the renewal of the CRA's (Community Redevelopment Agency's) commercial general liability property and worker's compensation insurance coverage for an additional one-year period through Brown & Brown of Florida, Inc., in an amount not to exceed 10,723. Historically, we have been using Brown & Brown as our brokers in order to obtain our commercial liability insurance. And those -- this is one of the examples that I was referring to you previously that everything over 4,500, it requires board approval. Commissioner Carollo: So move. Chair Dunn: There's a motion by -- Vice Chair Suarez: Second. Chair Dunn: -- Commissioner Carollo. Is there a second? Commissioner Gort: Second. Commissioner Suarez: Second. Chair Dunn: Second by -- seconded by Commissioner Gort. Any discussion? All in favor, let us hear by saying "aye." The Commissioners (Collectively): Aye. 3. CRA RESOLUTION a A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY APPROVING THE ISSUANCE OF A WORK ORDER, IN AN AMOUNT NOT TO EXCEED $5,285.50, TO ROYAL FENCE & EQUIPMENT COMPANY, FOR THE INSTALLATION OF NEW FENCING AT THE 9TH STREET PEDESTRIAN MALL; ALLOCATING FUNDING FROM SEOPW TAX INCREMENT FUND, "OTHER CONTRACTUAL SERVICES," ACCOUNT CODE NO File a Cover Memo pdf File Financial Form pdf File a Backup pdf File a Legislation pdf File a Legislation (2).pdf Motion by Board Member Sarnoff, seconded by Board Member Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and Vice Chair Suarez CRA-R City of Miami Page 6

7 Chair Dunn: Resolution 3. Mark Spanioli (Director of Engineering and Construction, Community Redevelopment Agency): Good evening, Commissioners. Mark Spanioli. Item number 3 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West CRA (Community Redevelopment Agency) approving an issuance of a work order in an amount not to exceed $5, to Royal Fence and Equipment Company for the installation of new fencing at the 9th Street Pedestrian Mall. As you may recall, this is a continuation of the funds that were transferred to us by the Public Works Department for maintenance activities related to the 9th Street Pedestrian Mall. This is another item that we needed to include, which is replacement of the dilapidated gates on the north and south side with new wrought iron fences. Commissioner Sarnoff: Mr. Chair. Chair Dunn: Is there a motion? Commissioner Sarnoff: I'll make a motion. Chair Dunn: Oh, yes. Commissioner Sarnoff: I'll make a motion for discussion. Chair Dunn: Yes. Commissioner Carollo: Second. Chair Dunn: Motion by Commissioner Sarnoff, seconded by Commissioner Carollo. Commissioner Sarnoff. Commissioner Sarnoff: How old is this fence and what is the disrepair to it? Is it just age? Is it --? Mr. Spanioli: This is the gate -- the entry gates at the north and the south side. I'm not familiar with how old they are. I would guess they're at least 15 years old. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Commissioner, if I may. The fence on the north and the south side of the pedestrian mall are chain-link fences that was the same as was on the west side of the mall that we had replaced in anticipation for Folk Life Friday and the renewed modification -- not modification, but cleanup work we did, the painting, the lighting and all that. This is just to come back to you so that we can finalize the fences on the north side and the south side of that pedestrian mall to match that one of the west. Commissioner Sarnoff: Are we -- so we're not voting for chain-link? Mr. Bockweg: No, no, no. This is actually the exact same fence that's on the west side of -- Commissioner Sarnoff: 'Cause I'm pretty much hell-bent never on voting for a chain-link fence in the City of Miami. Mr. Bockweg: I agree with you, Commissioner. This is just to match what's on the west side of the pedestrian mall. Commissioner Sarnoff: And that will be a wrought iron -- Mr. Bockweg: Black. City of Miami Page 7

8 Commissioner Sarnoff: -- picket fence. Mr. Spanioli: Correct. Mr. Bockweg: Correct. Commissioner Sarnoff: Okay. Thank you. Chair Dunn: Any other questions? There's a motion by Commissioner Sarnoff, seconded by Commissioner Carollo. All in favor, let us hear by saying "aye." The Commissioners (Collectively): Aye. Mr. Spanioli: Thank you. 4. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING EXPENDITURES, IN A TOTAL AMOUNT NOT TO EXCEED $250,000, FOR THE OVERALL BEAUTIFICATION OF THE PUBLIC RIGHT-OF-WAY OF THE PARK WEST AREA WITHIN THE VICINITY OF THE AMERICAN AIRLINES ARENA; PROVIDING THAT ANY EXPENDITURE IN EXCESS OF $4,500 BE BROUGHT TO THE BOARD FOR APPROVAL OR RATIFICATION; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS, OR DIRECTLY TO CONTRACTORS AND VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; FURTHER AUTHORIZING THE EXECUTION OF ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL; ALLOCATING FUNDS FROM SEOPW TAX INCREMENT FUND, "OTHER CONTRACTUAL SERVICES," ACCOUNT CODE NO File # Cover Memo pdf File # Financials pdf File # Legislation pdf File # Legislation (2) pdf File Cover Memo pdf File Financial Form pdf File Backup pdf File Legislation v pdf File Legislation v2 (2) pdf Motion by Board Member Gort, seconded by Board Member Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and Vice Chair Suarez CRA-R Chair Dunn: Resolution 4. City of Miami Page 8

9 Clarence Woods: Commissioners, Clarence Woods, the assistant director of the Southeast Overtown/Park West CRA (Community Redevelopment Agency). This is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency authorizing expenditures, in an amount not to exceed $250,000, for the overall beautification of the public right-of-way of the Park West area; providing that any expenditures in excess of $4,500 be brought back to the board for approval or ratification; authorizing the executive director to disburse funds at his discretion on a reimbursement basis or directly to contractors and vendors upon presentation of invoices and satisfactory documentation. As you recall, this is the particular item that was deferred from our last board meeting regarding the beautification of the Park West area. Commissioner Gort had some concerns that we were looking at maybe doing improvements within the parking lots of the area right around that -- right around the American Airlines Arena. We're not doing it in the right-of-way -- I mean, we're not doing it on private property. We're doing all the improvements in the right-of-way. Those improvements would consist of sidewalk replacement, streetscape guidelines implementation to include street frontage, landscaping, and the like, lighting replacement, and it would go to expand the DET (Downtown Enhancement Team) team, the neat team, and the ambassador programs to better cover the area. Commissioner Carollo: Mr. Chairman. Chair Dunn: Commissioner Carollo. Commissioner Carollo: Listen, it's late and I'm just going to put it right out there. Okay, you know, there was rumor this is for the party for the Heat when, you know, their opening night and so forth. And you know what, it's late. I'm just going to put it out there. Is this for a party for the Miami Heat or --? Mr. Woods: No. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Commissioner, if I may. This item was before you on September 20, as Clarence was stating. There were some concerns brought up by Commissioner Gort and others as far as that money going to improvements on private property. This item is now before you in assuring you that the money used for the beautification of Park West will only be going into the right-of-way. What we're doing is we're contacting with DDA (Downtown Development Authority), who has a master plan of doing the modifi -- beautifications within the Park West area. In essence, what we're going to be doing is we're just going to take some of the items that they want to beautify in their master plan and have the CRA do it. We're going to do it ourselves. It gives us more flexibility on what to do. It gives us more control, more efficiency to make sure it gets done right. In essence, that's why this item is back, and it will only -- money will only be placed in the right-of-way. It will not be used for private property whatsoever or a party. Commissioner Carollo: Question. The 4, anything in excess of 4,500 needs to come before this board. However, if it's 2,000 here, 3,000 there, 4,000 there, 5 -- well, not 5 -- another 3, so forth -- in other words, if you structure it where the sum of it is way over 4,500. Let's say -- I don't know, 20, 30, 40, 50, 60, 70,000, 100,000. Is that possible? In other words, 2,000 here, 1,000 there. You pay an individual or individual company 3,000 for this job, 2,000 for that job, and you exceed the 4,500 when you structure it and you put it all together. Is that possible -- Mr. Bockweg: If you take a -- Commissioner Carollo: -- up to 250,000? Mr. Woods: The intent of this particular restriction, the 4,500, is to not circumvent, you know, paying more than $4,500 for any one particular item. If they're small items that are less than City of Miami Page 9

10 $4,500, it would probably go to one vendor for one particular area of this list here. For instance, if it's sidewalk replacement, it's just for that particular vendor to do sidewalk replacement. It's not for the vendor to do sidewalk replacement on North Miami Avenue and then because he's not -- because it's not over $4,500 on North Miami Avenue, then he can go over on Northeast 2nd Avenue and then do 4, less than $4,500. It's for one particular vendor for one particular item, for a specific expenditure, like sidewalk replacements. And then if we deal with lighting replacement, that's something totally separate. If it's over $4,500, then we would have to come back to you. We wouldn't separate it just so we can circumvent getting around coming back before you. Commissioner Carollo: Right, and that's my question. I'm not going to be seeing in the future $250,000 worth of a whole bunch of items under 4, Mr. Woods: No, no. Commissioner Carollo: -- correct? Mr. Woods: No. We don't want to get in trouble that way. Mr. Bockweg: No, Commissioner. You have my assurance that will not happen. Commissioner Sarnoff: Mr. Chair. Chair Dunn: Yes. Go ahead, Commissioner Sarnoff. Commissioner Sarnoff: The genesis, Mr. Vice Chair, of this was actually a little bit of Commissioner Suarez and a lot of the Mayor. Right after the Heat announcement, we formed a committee and the Mayor actually walked the streets with the CRA and the DDA and FDOT (Florida Department of Transportation) and the County. And of course, in that walk, we all heard what the County couldn't do and then we heard what FDOT couldn't do. And the City was like, well, we need to do these things. And the Mayor has taken a personal interest in almost the entire Biscayne Boulevard and a little bit west of there issue. And there is an extensive list that the DDA has created that, you know, we're trying to relegate ourselves to City streets and not do FDOT streets and not do County streets. But the impetus of this was really this Commission when you said this is a big chance for the City of Miami to -- and I'm using -- I know it's 41 games, but hopefully we'll get in the playoffs Super Bowls. So this money is supposed to be geared towards the specialist walking up and down that boulevard trying to figure out what improvement can be put in. Really, it was supposed to be before opening day, and I know we're getting very close. Mr. Woods: That list that the Commissioner spoke of is in your packet. Commissioner Carollo: Commissioner Suarez, I heard you went walking with the Mayor. Commissioner Sarnoff: No, no, no. He was one of the ones that said we need to get this right, we need to get it looking good. Commissioner Carollo: Oh. Commissioner Sarnoff: But the Mayor actually did walk -- the Mayor was there, right? He walked up and down the streets. Mr. Bockweg: Yes, he did. Commissioner Gort: Anybody make the motion? City of Miami Page 10

11 Chair Dunn: I was -- Commissioner Gort: I'll make the motion. I'll move it. Commissioner Sarnoff: And I'll second. Chair Dunn: All right. The motion by -- Commissioner Gort: And the reason I move this is because you see a lot of the new buildings that are taking place within that area. Pretty soon Camillus House will be closing and knocking down the building and Camillus House, and you're going to see some additional buildings going in that area. That area is going to be developing quite a bit. And I understand what you're saying. You don't want to see multiples of 4,000 to go to 250,000. Commissioner Carollo: Exactly. Commissioner Gort: I understand that and I agree with you on that. Commissioner Carollo: Look, I guess what -- listen, I guess what I'm saying is I'm up here, you know, listening to my colleagues, listening to the Administration, and out of good faith, you know, I'm listening and just want to make sure that, you know, if I do vote to approve this, that everyone's working in good faith in a list for something that we need and so forth and it's not some hidden agenda where, you know, it's -- you know, I don't even know where I heard it, but, you know, some party for the Heat or some -- you understand what I'm saying? So the bottom line is, listen, I'm up here, you know, showing good faith and I hope everyone is and there is no hidden agenda because still, it is a lot of money. Mr. Bockweg: Commissioner, this money will not be going to a party. It will be for beautification within the Park West area in the right-of-way. Mr. Woods: And Commissioner, while that may have been part of the impetus for establishing this fund for a streetscape beautification project, we do that pretty much throughout the Southeast Overtown/Park West area. I mean, our mission is to eliminate slum and blight. We get complaints all the time from residents within the Park West area about roads, streets, areas within the right-of-way that need cutting or dressing up. I mean, one of the members of the Park West area was here earlier today talking about the same issue. It's not just for the American Airlines Arena or a party for the Heat. It's for the area. Commissioner Carollo: Thank you for that, and thank you for the clarification. And I just needed to put that, you know, in the record -- on the record because, in all fairness, I mean, there's only so much that we could actually research and so forth before all these meetings. And therefore, I think there needs to be a little good faith from, you know, all parties and so forth because, again, there's only so much that I could research before a meeting, so thank you. Chair Dunn: All right, there's a motion by Commissioner Gort, seconded by Commissioner Sarnoff. All in favor of this motion, would you signify by saying "aye?" The Commissioners (Collectively): Aye. Chair Dunn: So moved. 5. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE City of Miami Page 11

12 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF A REQUEST FOR QUALIFICATIONS FOR THE OPERATION OF THE WARD ROOMING HOUSE AS AN ART GALLERY. File Cover Memo pdf File Legislation pdf File Legislation (2) pdf Motion by Board Member Gort, seconded by Board Member Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and Vice Chair Suarez CRA-R Chair Dunn: Resolution 5. Clarence Woods (Assistant Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Commissioners, resolution -- this is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency, authorizing the issuance of a request for qualifications for the operation of Ward Rooming House as an art gallery. As you know, Commissioners, we did a ribbon-cutting for the Ward Rooming House, which is a project that we've been undertaking for some time now. It has been completed and it is a wonderful building. And we are now looking for operators to actually program and operate this particular facility. Any time we have an -- any time we plan to convey an interest in property, we have to put out some sort of solicitation, and we're going to put out a -- or we're asking or seeking to put out a request for qualifications for proven art gallery operators. Commissioner Gort: Move it. Chair Dunn: Moved by Commissioner Gort -- Commissioner Sarnoff: Second. Chair Dunn: -- seconded by Commissioner Sarnoff. Any discussion? Commissioner Gort: In discussion, let me tell you. One of the reasons I moved this, I think art is one way to bring this community together and we established that in Little Havana with the Cultural Friday [sic], where now we have about 13 galleries in there and we have -- bring in visitors into that area. So I think that if we can get that to perform, it'd be great. Chair Dunn: Okay. All in favor, let us hear by saying -- The Commissioners (Collectively): Aye. 6. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY MODIFYING SEOPW CRA STAFF WAGES FOR FISCAL YEAR 2011, AS STATED HEREIN. File Cover Memo pdf File Legislation pdf File Legislation (2) pdf City of Miami Page 12

13 WITHDRAWN Chair Dunn: We did 6 already, so we need to look at -- Commissioner Gort: We did? Chair Dunn: -- Item 2. Priscilla A. Thompson (Clerk of the Board): No, sir. Chair Dunn: We did not do -- Commissioner Gort: We haven't done any. Chair Dunn: We haven't? Commissioner Gort: No. Ms. Thompson: According to my notes here -- Chair Dunn: Okay. Commissioner Gort: No. Ms. Thompson: -- we discussed Item 7, which resulted in two resolutions. That's what we have completed of the agenda right now. Chair Dunn: So let me ask this question, Madam Clerk. So with the modifications that were made relative to the wages which we -- which was a part of the overall budget, then we would be in order now to accept, if there's a motion, those modifications as it related to the wages. Am I correct? Ms. Thompson: I'm sorry. Are -- I want to be clear. When we originally discussed the modifications to the salaries -- Chair Dunn: Yes. Ms. Thompson: -- that was your -- the original motion that Commissioner Sarnoff made and then Commissioner Carollo seconded. He withdrew that motion, okay, and we now have a full resolution, title, that encompasses everything that you discussed. Chair Dunn: Okay. Ms. Thompson: Okay. So that completes item number -- Chair Dunn: 7. Ms. Thompson: Chair Dunn: Clear. Ms. Thompson: Okay. That's all we've done on this agenda. Chair Dunn: Okay, I'm clear on that. Ms. Thompson: Okay. City of Miami Page 13

14 Chair Dunn: But I'm saying at this time, we need to -- I'm asking you -- accept a motion for the wage modifica -- No? We don't have to do it. Ms. Thompson: No. Commissioner Gort: They got to come back to us. Ms. Thompson: Just let me make sure. Chair Dunn: Okay. Ms. Thompson: Are you speaking --? Commissioner Sarnoff: We're covered. Chair Dunn: Okay. Commissioner Gort: We're covered. They got to come back to us -- Chair Dunn: Okay. Commissioner Gort: -- with all the changes -- Chair Dunn: Okay. Commissioner Gort: -- that we added tonight. Chair Dunn: All right. Commissioner Gort: Yeah. Commissioner Sarnoff: You just go through your agenda. Ms. Thompson: Now -- but I think I know what Chair is getting at. I think he is talking about Item 6. Chair Dunn: That's what I'm talking about. Ms. Thompson: Yes. He's talking about Item 6 that was listed as a resolution that did, in fact, modify the staff wages. Chair Dunn: Absolutely. Ms. Thompson: He is absolutely correct. And I would defer to the City Attorney as to whether or not that's necessary or that -- because you've already addressed it, I think, here. Pieter Bockweg (Executive Director, Community Redevelopment Agency): That item is not necessary 'cause we already addressed the salary reductions in the budget -- the amended budget that we just approved. Commissioner Gort: You don't have to move on that one. Chair Dunn: Okay. City of Miami Page 14

15 Ms. Thompson: So then what you'll be doing, I think, is just withdrawing that one? Commissioner Sarnoff: Do you need that? Do you need a motion to with --? Ms. Thompson: No. No, no. Commissioner Gort: No, no. Ms. Thompson: No. Just -- so we'll take no action on it. We'll show that in your notes. DISCUSSION ITEMS 7. CRA DISCUSSION DISCUSSION ITEM REGARDING THE FISCAL YEAR 2011 GENERAL OPERATING AND TAX INCREMENT FUND BUDGETS. File Cover Memo pdf File Backup pdf DISCUSSED Discussion on the item resulted in the resolutions below: (7.) CRA RESOLUTION a A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY (subject matter: compensation package for the executive director.) Motion by Board Member Sarnoff, seconded by Board Member Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and Vice Chair Suarez CRA-R (7.) CRA RESOLUTION b A RESOLUTION OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENTS, ACCEPTING AND ADOPTING THE AMENDED BUDGET OF THE SEOPW CRA, ATTACHED AND INCORPORATED, FOR FISCAL YEAR COMMENCING OCTOBER 1, 2010 AND ENDING SEPTEMBER 30, 2011 AS APPROVED BY THE SEOPW CRA BOARD OF COMMISSIONERS. Motion by Board Member Sarnoff, seconded by Board Member Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Chair Dunn II, Commissioner Sarnoff, Commissioner Carollo and Vice Chair Suarez City of Miami Page 15

16 CRA-R Direction by Commissioner Sarnoff to the Executive Director to provide the Board with a comparison of the City of Miami's health insurance plan benefits and the Community Redevelopment Agency's (CRA) health insurance plan benefits at the CRA meeting currently scheduled for November 10, Chair Dunn: So I'm going to ask now for the executive director. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Commissioners, the -- item number 7, a discussion item related to the budget, was put on this agenda, of course, from the deferral that was done on September 27. I have taken a look at the budget that was presented to you by my predecessor, Jim Villacorta, and looked at the concerns that all of you had presented to me, not only during the actual board hearing, but also in my individual briefings with you. I know there was a lot of concern from all of you related to the 8 percent increase in salaries from year 2010 to So I would like this opportunity to at least clarify, which was misrepresented by me on September 27, what that increase actually is. The 8 percent increase from the budget from 2010 to 2011 are related to anticipated hires from my predecessor -- that the -- my predecessor was anticipating two new hires. It also had included -- included in the 8 percent was the reserve. I misrepresented during the budget hearing, of course, you know, that they were hires and implied that certain packages were in there, which is not true. It was solely anticipated hires by my predecessor that he was anticipating to do in the year I have heeded to the concerns of all of you, again, not only in the budget hearing, but also in the briefings, and I have revisited the budget that was presented to you in July. I have a proposal to show an 8 -- to recoup that 8 percent increase by providing salary cuts for the top five earners of the CRA (Community Redevelopment Agency), as well as the newly-hired staff members. And that -- with reducing their salaries, using the City's wage tier, we recoup that 8 percent. If you'd like, I can go specifically as far as the reductions of those five people that I'm proposing to show how I recoup that 8 percent.. Chair Dunn: What is the plea --? Yes, Mr. -- Commissioner Carollo. Commissioner Carollo: Yes. I would like to know what exactly would be the -- each individual salary and the reduction -- or the proposed salary and reduction. Mr. Bockweg: Correct. The executive director, myself, will take a 12 percent reduction in salary. The capital projects manager will also take a 12 percent reduction in salary. Commissioner Carollo: And 12 percent reduction from -- where's the starting point? Mr. Bockweg: One twenty -- Commissioner Carollo: From what salary? Mr. Bockweg: One twenty-three for the executive director and one twenty-two for the capital projects manager. The assistant director for Southeast Overtown/Park West will have a 9 percent reduction. The assistant director for Omni will also have a 9 percent reduction, and the media director will also have a 9 percent reduction. I think it's the responsibility of the -- not only the leaders but also the higher-paid personnel of the CRA to take the responsibility and the brunt of recouping that 8 percent. And not necessarily doing it over the entire -- not necessarily doing it through the entire employees of -- the staff of the CRA. So I took it upon -- we took it upon ourselves to take these cuts to recoup that 8 percent in salary that was presented to you in in July. Chair Dunn: Commissioner Carollo, yes. City of Miami Page 16

17 Commissioner Carollo: What about cell phone allowance, car allowance, vacation days, sick days, holidays, pension? Mr. Bockweg: The cell phone allowance, car allowance, and all the other things you mentioned remains the same. They don't affect the 8 percent increase that was presented to you in the 2011 budget. The 8 percent increase that was presented to you was solely based on salaries, not on fringe benefits. And Commissioners, the budget now with this recoup of the 8 percent, the salary budget is identical to that of Commissioner Gort: What you're saying, your package is the same package they had -- the previous director? Mr. Bockweg: My package -- my salary right now is at Commissioner Gort: Okay. Mr. Bockweg: -- and my cell phone is $150. Commissioner Gort: Vacations? Mr. Bockweg: Right now I'm not using -- I don't have any vacations 'cause I'm still on loan -- currently, I'm on loan from the City, so I'm using the hours that I accumulated from working at the City. Commissioner Gort: My understanding, once the -- you completely out of the City, the CRA will reimburse the City for your salary paid as a loan. Am I correct? Mr. Bockweg: The CRA will not -- in the past, my predecessor, as well as one of the staff members at the CRA, was on loan, and one is still currently on loan with the City. The CRA reimburses the City for all expenses related to those salaries. Currently, I -- we, the CRA, will also be reimbursing the City for my salary that I'm receiving from the City. Chair Dunn: Could you repeat that again because there was a great deal of misunderstanding about where money was coming from? And so I would appreciate that. Mr. Bockweg: Currently, Commissioners, I am still receiving the same salary in the City that I was receiving before. The only difference is that I am taking the incremental increase from my salary at the City and what the previous executive director was being paid. My salary at the City that I am receiving from the City will be reimbursed by the CRA back to the City. In essence, it's the same as what had happened with the previous executive director and the current staff member that is on loan who we all -- the CRA reimburses the City for that expense. Chair Dunn: So there is a president [sic]? Mr. Bockweg: Yes, there is, sir. Chair Dunn: Okay. Is there a motion or any other questions? Commissioner Carollo: Hold on. What --? We are on which item? Discussion item? Chair Dunn: We -- he's on 7. Mr. Bockweg: This is discussion item number 7, Commissioner, related to -- The reason why this is a discussion item is because, technically, the budget was already approved in July, so we wanted to have a discussion item. I have a resolution ready to amend the budget that was City of Miami Page 17

18 approved in July to show these changes in the recouping of that 8 percent, but that's why it's on the agenda as a discussion item. Commissioner Carollo: Now at the same time, I know we're discussing salaries, but there's other factors that we need to discuss, like I mentioned, automobile and phone and so forth. So I don't know if you want to do that separately. At the same time, I'm weary [sic] into moving forward just with this because of -- let's say, what was presented to us before was -- for the executive director was a whole package with future increases and so forth. And I want to know exactly if there's a motion, what the motion is for. Is it just for salary? Is it just this year's salary? So I'm a little skeptical. So, you know, excuse me if I'm going a little slow and at the same time, I'm going to be asking, you know, questions and even more questions. Mr. Bockweg: Commissioner, let me just explain to you and clarify why my compensation package was presented in September. The reason why my compensation was presented in September, which I was fully anticipating for it not to be what was presented. I was anticipating for it to be -- come down significantly, but the main reason why I had presented that compensation package in September was because I was being asked by the Administration to resign from the City so that I can be off the City's books. And I have no problem doing that and I am willing to do that now. The reason why I put the compensation package on the agenda is because if I don't have a contract with the CRA and I resign for the City, I don't have health insurance. Now I cannot have health insurance for myself and I'm okay with that for a couple months or however long it takes to accept my compensation package, but I do have a 3-year-old son, who I do have to think about, and I did not want to put him in jeopardy, God forbid anything happen, that he would not be covered with insurance. I understand the concerns, the anger about what was presented. I can tell you that it was not with any ill will or malice intent. It was simply, number one, to make sure that if I was resigning from the City, that I would still have coverage for my son, health insurance, and I was fully anticipated to have that package that was presented come down. Chair Dunn: Mr. Bockweg, I think what my colleague, Commissioner Carollo, wants, I guess, to know what would your proposal be for your -- because --? So for clarification purposes, there was one number that was presented at the September meeting, and he needs to know in terms of -- and my colleagues need to know what is the exact amount that you will -- Mr. Bockweg: Okay. Commissioner Dunn: -- be presenting to be approved. Mr. Bockweg: What I was considering, Commissioners, was obviously right now I'm getting paid the same salary as the previous executive director. I will take a 10 percent cut, which is equal to that of the sorry, 12 percent cut. My mistake. -- which was equal to the tier that was approved by the City Commission for the City employees. I was proposing $150 phone allowance, a -- Commissioner Carollo: Per month. Mr. Bockweg: That's correct, sir. -- $400 car allowance. Commissioner Carollo: Per month. Mr. Bockweg: Per month. That's correct, sir. I was -- as far as the vacation hours, I am willing to use the use it or lose it, which is the same policy that the City employees have, and also an 8 percent deferred compensation contribution. As far as the sick time, I leave that up to you, the Commissioners. I think what was proposed and what I had mentioned, there was 180 hours vacation, use it or lose it, and 180 hours vacation -- sick time, I'm sorry, ill time. City of Miami Page 18

19 Commissioner Carollo: If I may, Mr. Chairman. Chair Dunn: Commissioner Carollo. Commissioner Carollo: What was your vacation time when you were with the City -- or I guess you still are with the City? Mr. Bockweg: I had accumulated 240 hours, Commissioner. Commissioner Carollo: Right, but I'm saying what was your yearly vacation time? Mr. Bockweg: I honestly don't recall what that exact -- Commissioner Carollo: More power to you, man, 'cause -- Mr. Bockweg: I -- to tell you the truth, Commissioner, I had not gone on vacation for well over a year, so I honestly don't know what's -- I might have taken days off, but as far as an extended vacation, I have not. That's why I had accumulated those hours of vacation time. Commissioner Carollo: I mean, unless you want me to do the calculation and see how many years have you been on and calc -- you know, divide it by 240 and so forth. I mean, 'cause I want to get a feeling of -- if you've accumulated, what, 240 hours and now you want 240 per year? Mr. Bockweg: No, no, no, Commissioner. That was what was proposed. Again, what I'm -- which was initially put on the agenda, which I was anticipating to come down. I'm willing -- remember that the benefits and -- the fringe benefits for the CRA is very different than of the City's. The -- I -- we don't have in the CRA the use it or lose it policy currently. I'm willing to do that in conjunction with what the City has approved and is using for their employees. And whether it's 240, whether it's 160, whether it's 100, I leave that up to you, Commissioners. Commissioner Carollo: I'd like to hear from my colleagues. However, 240, that's 30 days. I mean -- and if it's use it or lose it, you might be gone for, you know, a quarter of the time and so forth, and I don't think that's just either. Mr. Bockweg: I agree with you. Commissioner Carollo: So I'd like to hear from my colleagues. And sick time is another 240 hours, so that's 60 days. Mr. Bockweg: But remember, Commissioner, that was the proposed. That is not what I -- that is not what I'm putting on out here now, and it could be fluctuated however you deem fit. Vice Chair Carollo: Not to mention 11 days of holidays, which make it 71 days. So I understand that was before. What are you proposing now or what do my colleagues want to do? And by the way, I know we're getting off track because we're dealing with your salary and your package because it's part of the salary here. So that's why -- I know some of this is getting comingled, but the bottom line is I don't want to make a motion and vote on, you know, the salary component and have things lingering with regards to the executive director. So that's why, you know, I'm asking questions. As far as -- so you know, I mean, I don't know how my colleagues want to do this. As long as we're thorough with it, you know, I'm open for suggestions. Chair Dunn: Commissioner Suarez. City of Miami Page 19

20 Vice Chair Suarez: Thank you, Mr. Chairman. I have several concerns. I'm not sure what to do about the vacation or the sick in terms of how much time or days, certainly nowhere near what is -- was initially proposed. One concern that I do have -- and I'm not sure it was addressed and I'm not sure if it was clarified -- and I think the Chairman actually mentioned it, was this was originally presented to us as a three-year contract, so I just want to make sure that that's not what we're seeing here today. This is not a three-year contract, correct? Mr. Bockweg: No, it's not, Commissioner. Vice Chair Suarez: Okay. The other thing was that contract had 9 percent salary escalators every year. That is not what's being presented here today, correct? Mr. Bockweg: No, it's not, Commissioner. Vice Chair Suarez: Okay. What did the prior executive director have in terms of a car allowance? Mr. Bockweg: He did not have a car allowance. Vice Chair Suarez: Okay. That's what I suggest that you do. Okay. As far -- what was the prior executive director's sick time and vacation time? Mr. Bockweg: He had, I believe, the same as the City's policy. Vice Chair Suarez: What is that? Miguel Valentin (Financial Officer, Community Redevelopment Agency): To be honest with you, he -- Chair Dunn: State your name for the record now. Mr. Valentin: Miguel Valentin, CRA financial officer. He was acting as the City of Miami loan employee placed in the CRA. Basically, he was following whatever City's policy in that regard. Vice Chair Suarez: Well, what was it? Mr. Valentin: To be honest with you, he's been working for the City ten years. I don't know what is the rate that they have been applying to him. Commissioner Carollo: To him. And I don't think -- I'm sorry. Vice Chair Suarez: No, no. Go ahead. Commissioner Carollo: Mr. Chairman. Commissioner Gort: Somebody from the City can -- Commissioner Carollo: And I don't think -- Commissioner Gort: -- what the policy is. Chair Dunn: Go ahead, Commissioner Gort, then Commissioner -- Commissioner Carollo: And I don't think Mr. Bockweg's been with us for ten years, so it would have to be less. City of Miami Page 20

21 Mr. Valentin: No. He has -- yeah, he's been working seven years, I think. Mr. Bockweg: I've been with the City for five years. Mr. Valentin: Five years? Mr. Bockweg: Five years. Commissioner Carollo: So based on the City then, what does a five-year employee get in vacation? Mr. Valentin: To be honest, Commissioners, I don't know about that because as I was telling the Commissioners privately, the City is processing his payroll check as we speak. Then at the very end of the fiscal year, the CRA is reimbursing everything, all his entitlements, except for the pension contribution and the health insurance contribution made by the City. Commissioner Carollo: Mr. Chairman, is there someone from Employee Relations here that could help us, the director of Employee Relations or interim or someone that could help us? Julie O. Bru (General Counsel: Vice Chair, I know that there's a schedule that the City follows and HR (Human Resources) has it. And it depends on what your category is, whether you're an executive, whether you're -- you know, depending. And then you start to accrue -- I know that, for example, I think the executives, they accrue 15 days per year until you reach seven years, and then you start to accrue an additional day, and it all depends on your -- if somebody's here from HR, there's a schedule. Commissioner Carollo: Well, that's why I'm asking. And you're saying 15 days? Chair Dunn: We have -- Carlos A. Migoya (City Manager): May I? Chair Dunn: Excuse me. We have the Manager. Mr. Migoya: I just called the ER (Employee Relations) Department. A five-year director would get 256 hours of vacation, and then he'd get 8 hours per month on sick days. It would be 96 hours of sick days. Chair Dunn: Commissioner Gort. Commissioner Gort: And you are? Mr. Migoya: Carlos Migoya, City Manager. Commissioner Gort: Thank you. Commissioner Sarnoff: Mr. Chair? Chair Dunn: Yes, Mr. Chairman. Commissioner Sarnoff: I don't know that we should do business as we've done in the past, and I don't know that we should be tying anyone's salary to what was done in the past. So why don't we do this with regard to -- we already heard from Commissioner Suarez, what he thinks about the car allowance. What about two weeks use it or lose it vacation and seven days sick time? City of Miami Page 21

22 That's -- does it have to be tied to anyone else's or any other things? At some point, are we not going to break from tradition? I mean, the director that preceded Jim Villacorta, in 37 months, accrued $88,000 in 37 months of sick time and vacation time. So why are we even discussing what happened in the past? Why don't you just create a new slate today and just say it's a use it or lose it policy, it's two weeks, and I don't know if seven days is reasonable, but I don't know that it's not reasonable either. Chair Dunn: I'll follow the pleasure of this body. Commissioner Carollo: With regards to vacation, sick, and holidays, I'd be in favor of that, 14 days for vacation, 7 days for sick, and 11 days for holidays. That will make it 31 days, so it's over a month, so okay. I'd be in favor of that section, yes. Chair Dunn: Mr. Bockweg. Mr. Bockweg: That's fine with me, Commissioners. Chair Dunn: Are there any other questions? Commissioner Gort: My understanding is today our action is amending the budget that was passed previously with a reductions of 8 percent. At the same time, we're now also approving -- we have put together a package for the executive director as part of this budget, right? Mr. Bockweg: Those will be two separate items, Commissioner, that would have to be approved. The amendment to the budget -- Commissioner Gort: Okay. Mr. Bockweg: -- and then the compensation. Commissioner Gort: But the amendment to the budget will not affect the decision that we make on the -- on your package? Mr. Bockweg: It would affect it based on your salary -- on my salary -- what you're proposing on my salary. Commissioner Gort: I mean, what could happen, it could lower it. Mr. Bockweg: Exactly. Commissioner Gort: Okay. Chair Dunn: Yes, Commissioner Suarez. Vice Chair Suarez: Thank you, Mr. Chairman. I just want to clarify for the record 'cause there hasn't been any talk of it, but there is no -- not going to be any severance either, whether for cause or for -- without cause or anything like that. Mr. Bockweg: No, Commissioner, there will not be. Chair Dunn: Is there a motion? Commissioner Gort: We are voting on the amendment to the budget which shows a reduction of 8 percent. Am I correct? City of Miami Page 22