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HomeMy Public PortalAbout03-March 30, 2015 Regular Commission Meeting Minutes CITY OF OPA-LOCKA "The Great City" CLERK'S ACTION SUMMARY MINUTES SPECIAL COMMISSION MEETING March 30, 2015 3:00 P.M. Sherbondy Village Auditorium 215 President Barack Obama (Perviz) Avenue Opa-locka,FL 33054 1. CALL TO ORDER: Mayor Myra L. Taylor called the meeting to order at 3:00 p.m. on Monday, March 30, 2015 in the Auditorium at Sherbondy Village, 215 President Barack Obama (Perviz) Avenue, Opa-locka, Florida. 2. ROLL CALL: The following members of the City Commission were present: Vice Mayor Timothy Holmes, Commissioner Joseph L. Kelley, Commissioner Terence K. Pinder, and Mayor Myra L. Taylor. Also in attendance were: City Manager Kelvin L. Baker, Sr., City Attorney Vincent T. Brown, and City Clerk Joanna Flores. Commissioner Luis B. Santiago arrived at 3:06 p.m. 3. INVOCATION: The Invocation was delivered by Commissioner Joseph L. Kelley. 4. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited in unison. Mayor Taylor recognized Thomas Montgomery of DEP. 5. CITIZENS' INPUT: Agenda Items Only 1. Steven Barrett of 633 Sharar Avenue, Opa-locka, Florida, appeared before the City Commission and said agenda item 6.3 is a good idea, but he would like to know where they are considering moving the new transfer station. He further said he knows the importance of a City Hall, but the city had the opportunity to purchase a City Hall for $6.5 Million Dollars and the City Commission did not take the opportunity. After reading the report he has concerns because the parking is not mentioned. It would have been a good idea to get citizens input before purchasing the building. Special Commission Meeting Minutes—03/30/2015 1 6. RESOLUTIONS: 1. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PURCHASE AGREEMENT FOR TOWN CENTER 1, LOCATED AT 780 FISHERMAN STREET; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. Sponsored by M.T. The above resolution was read by title by Attorney Brown. It was moved by Vice Mayor Holmes, seconded by Commissioner Pinder to pass the resolution. Mayor Taylor said the city tried to purchase Town Center before and the price was too expensive. They negotiated the price to where they can live with it. She does not care for the temporary space they are currently occupying. Commissioner Pinder said buying the building is a big deal because it's going to impact the city's finances for what they are trying to do, but he does not want something being done without it being thought out, such as how much revenue will the city get from the tenants in the building, how much will the mortgage be, how will it affect the revenue of the city's daily operation. He would like those things explained so the residents will understand the investment. Government has to be transparent about everything they are doing. They have to be vigilant in the fiscal impact, what they are expecting and what they have to put out. Commissioner Kelley said he likes the idea of them having their own City Hall. After looking at the exhibit attached to the resolution parking is a concern. He made reference to exhibit B1 that says 195 offsite parking spaces will come with the agreement. He shared the same concern as Commissioner Pinder with regards to the rent roll. He is concerned because when the city got the loan it was with the idea of them building a City Hall. He asked, has the bank approved the purchase of Town Center? Manager Baker replied, yes. Commissioner Kelley said he has concerns that the city has an $8.5 Million Dollar loan for acquisition and construction, if the city purchases the building then they will have funds left over. He is concerned that some of the funds will be used to retrofit the building and make it compatible. He will come back with future legislation because he does not want to see $600,000 being used on the 2nd floor chambers. His other concern is with the exhibits that are laid out. He would like to see them because it's not available to the citizens. The concerns that all of them have with regards to the financials and the payments will be addressed prior to any financial execution of agreement with the proposed owners. Special Commission Meeting Minutes—03/30/2015 2 Attorney Brown said paragraph 26 of the agreement specifically lays out the exhibits that are part of the agreement. The substituted version includes the changes that were made to the language. Commissioner Pinder asked, are the attorneys present who reviewed the agreement? Attorney Brown replied, no. Commissioner Pinder asked, what will it mean if the above legislation is passed today? Attorney Brown said if the legislation is passed today, it will give the City Manager authorization to execute the agreement and move forward with the purchase of Town Center One. Commissioner Pinder said basically they have to have confidence that the City Manager will do due diligence. He wants to make sure they do due diligence with the tenants that is currently occupying the building. Look at their lease and make sure the city does not get caught up fiscally in the upcoming years. Manager Baker said the building is a multi story facility, approximately 80,000 square footage of space. The parking lots to the east and west are under easement agreements, which are binding agreements. The agreements were entered into with the property owner and the city upon the property being developed. The building could not be developed with the absence of the easement agreements. The two lots are part of the property, however they will not be owned by the new owner, because they are owned by separate investors, however the easement agreements clearly states should the properties be developed adequate or similar parking has to be replaced. He pointed out that any development projects must come to the Commission for approval. The building will require renovations; one will be a Commission Chambers. In addition, closing costs are associated with the process as well as moving expenses. The building is considered as an enterprise for the city, meaning it is a revenue producing facility. If the above legislation is approved, they will be bringing forth an ordinance for first and second reading because any enterprise efforts are taxable and based on their calculations they will be occupying roughly 40% of the building and the remaining 60% is enterprise. The goal in moving in the facility is to maximize revenues and to rent out all of the available space, in doing so it will give the city a good opportunity to fund the debt service on the loan. Commissioner Pinder said that is what he is talking about, innovative ways to help balance the budget. He asked, when they were discussing building a city hall, how were they going to pay for the building? Manager Baker said they were going to pay through the general fund and enterprise fund. Commissioner Pinder asked, is it his understanding that they don't have to touch the general fund and enterprise fund, because they will have the rent from the tenants which will pay the $8.5 Million Dollars? Special Commission Meeting Minutes—03/30/2015 3 Manager Baker said that is their goal. Commissioner Pinder said now they will be able to use the $8.5 Million Dollars over the years to improve roads, services, and give employees raises? Manager Baker replied, yes. Commissioner Santiago said he would like to move to the building and he thinks that building is one of the best facilities in the city. He asked will the building have parking space? Manager Baker replied, yes. Commissioner Santiago asked, is the parking included in the purchase price? Manager Baker said they are not purchasing the parking lots. They are under an easement agreement. Commissioner Santiago said that does not convince him. If he purchases a car then he want it with four tires, not two. The city can purchase the building, then the owners may decide to build something on the property, then what will the city do in terms of parking? He asked, who will manage the building? Manager Baker said they will be in a position to make recommendations after going through the due diligence process. Commissioner Santiago said before recommendations are made, he wants them to go out for search to hire a company to manage the building. He requested to amend the legislation to include "the City Commission has to choose the company that will manage the building". Vice Mayor Holmes said as he hear his colleagues express their concerns, he have some reservations. He thanked the Mayor for taking the lead for the city to purchase the building. He thanked Commissioner Pinder for getting on board and doing what he felt was necessary to move the process forward. He said Commissioner Kelley plays a major role in trying to get Sherbondy Village. He hope they can all come together to do what's right for the city and the people that voted for them. Commissioner Kelley said he agree with his colleague with regards to going for bid to select a manage company; however he suggested that his colleagues bring that back at a separate meeting. Mayor Taylor said she agrees with Commissioner Kelley. There being no further discussion, the resolution passed by a 5-0 vote. Commissioner Kelley Yes Commissioner Pinder Yes Special Commission Meeting Minutes—03/30/2015 4 Commissioner Santiago Yes Vice Mayor Holmes Yes Mayor Taylor Yes 2. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA, APPROVING CONTRACT FOR LEGAL SERVICES WITH THE BROWN LAW GROUP, LLC.; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. Sponsored by T.P. The above resolution was read by title by Attorney Brown. It was moved by Commissioner Santiago, seconded by Commissioner Pinder to pass the resolution. Commissioner Santiago said the firm has only been with the city for a month and he would like to make an amendment to the legislation to give them a 90 day probationary period. Commissioner Kelley said it's not personal, but he does have some concerns about the experience and how many attorneys' are with the firm. He made reference to #2 of the agreement and said the CRA should not be included in their services because it is separate. A portion of the contract says they will provide legal advice expected and will handle litigation and special projects outside the scope typically expected and he interpreted that as them doing outside litigation, however #3 says exclusive of litigation and special projects. He said he cannot support the agreement for that amount, he thinks it is too expensive to pay any firm. He likes the idea of the probationary period, but he still has a challenge with the compensation. Vice Mayor Holmes said he concurs with Commissioner Kelley. The compensation is too expensive and he wants to know what position Mr. Pizzi has with the firm. Attorney Brown said Mr. Pizzi is an off counsel attorney with his firm, meaning he works in conjunction with the Brown Law Group on special projects. Vice Mayor Holmes asked, is that the reason his fee is $22,000 per month. Attorney Brown said he reached that figure based on the volume of work and the amount of time he spends at the city he came up with that number, which is $709 per day. His hourly rate is $350 per hour; the rate the city is given for two attorneys is significantly less than he normally charges his private clients. Vice Mayor Holmes asked Attorney Brown will he be willing to lower his fee until he gets to know the city? Attorney Brown said with all due respect he would like to get input from the Commissioner who sponsored the legislation. Commissioner Pinder said months ago former Vice Mayor Johnson made a request to the Commission for a request on outside counsel that Greenspoon Marder used even during Special Commission Meeting Minutes—03/30/2015 5 budget amendment time and in that discussion it was close to $180,000 that was billed out from Greenspoon Marder in addition to their base salary of $17,000 per month. The city was actually paying $34,000 per month for legal services minus the Florida League of Cities. Commissioner Kelley said the bottom line is he cannot support $22,000 per month at this time. Commissioner Santiago said he would like to make his amend starting from today to give the firm a 90 day probationary period. It was moved by Commissioner Santiago, seconded by Commissioner Pinder to amend the agreement to include a 90 days probationary period. Mayor Taylor made reference to section 2 of the agreement. Attorney Brown said he discussed the issue with the Mayor and he will amend the agreement to remove the hold harmless provision. Commissioner Kelley requested clarification on the 90 day probationary period. Commissioner Pinder said the spirit of the amendment is if there are any concerns they will be brought back to the Commission to no longer use the law firm or to adjust the pay. There being no further discussion, the amendment passed by a 4-1 vote. Commissioner Pinder Yes Commissioner Santiago Yes Vice Mayor Holmes Yes Commissioner Kelley No Mayor Taylor Yes There being no further discussion, the resolution passed by a 4-1 vote. Commissioner Santiago Yes Vice Mayor Holmes Yes Commissioner Kelley No Commissioner Pinder Yes Mayor Taylor Yes 3. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA, DIRECTING THE CITY MANAGER TO MOVE THE EXISTING CITY OF OPA-LOCKA TRANSFER STATION TO A NEW LOCATION; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. Sponsored by L.S. The above resolution was read by title by Attorney Brown. Special Commission Meeting Minutes—03/30/2015 It was moved by Commissioner Santiago, seconded by Commissioner Kelley to pass the resolution. Commissioner Kelley said he likes the idea of moving it, but he suggested that it is moved where there are no citizens. He offered an amendment to move it to a city owned property. Commissioner Santiago asked the City Manager, does the city have any property that they can utilize as a transfer station? Manager Baker said they have a list of surplus property and he is currently in the process of looking at it. It was moved by Commissioner Kelley, seconded by Commissioner Santiago to amend section 2 as follows: the City Commission hereby directs the Manager to find a new location for the transfer station out of the inventory of surplus property prior to moving the existing location and bring the recommended location back to the Commission for approval within 30 days. Vice Mayor Holmes asked, does the city have any property to move the transfer station to? Manager Baker replied, yes. There being no further discussion, the amendment passed by a 5-0 vote. Commissioner Kelley Yes Commissioner Pinder Yes Commissioner Santiago Yes Vice Mayor Holmes Yes Mayor Taylor Yes There being no further discussion, the resolution passed by a 5-0 vote. Vice Mayor Holmes Yes Commissioner Kelley Yes Commissioner Pinder Yes Commissioner Santiago Yes Mayor Taylor Yes 4. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO IMPLEMENT THE PROCUREMENT PROCESS FOR USAGE IN CAPITAL IMPROVEMENT PROJECTS FUNDED BY GRANTS AND/OR STATE OF FLORIDA REVOLVING LOANS; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. Sponsored by C.M. The above resolution was read by title by Attorney Brown. Special Commission Meeting Minutes—03/30/2015 7 It was moved by Commissioner Pinder, seconded by Commissioner Kelley to pass the resolution. Commissioner Kelley said under the information provided by the City Manager with regards of how it will work in terms of time lines, etc. He asked, is this the new process the City Manager came up with? Manager Baker replied, yes. Commissioner Kelley said based on the dialogue that took place at a previous meeting there was great concern about the evaluation committee and the recommendation coming forth from them. Based on a correspondence from the City Manager, the evaluation committee has not changed and if the recommendation given by the committee is not approved they have to notify the funding agency, redo the RFP, and resubmit. If it's revised it still has to be approved by DEP and re-advertised. If it's approved by the Commission then they have a list of things that has to occur including #2 which is what he has a concern about. He said he does not know if they should follow it as is because in his opinion it puts them back to where they are. Vice Mayor Holmes said his concern is that the city have the money for Infrastructure and it's been sitting for the longest. The city has a lot of bad roads and drainage issues. Commissioner Santiago said he wants the projects done, but he wants them done right. The Commission did not try to stop the project; they found something wrong and tried to fix it. Commissioner Kelley asked, will the process and committee be the same as it was in the past? Manager Baker replied, yes. Commissioner Kelley said he know the Manager followed the directive to come back with a process, but he cannot support this process. He is not an engineer, but his preference is always to have professionals look at it. He asked, if they go with the process before them does that mean they will have to start over? Commissioner Santiago said it is very clear that they are going to run into the same problem. He asked, why the City Manager did not choose another selection committee? Commissioner Kelley asked, is it laid out in the loan agreement that CIP has to look at the RFP? Manager Baker replied, yes. The committee includes two members from CIP and the other members are from other departments, in addition to one outside consultant. Commissioner Pinder said it was his understanding that the city hired EAC and they work with CIP then they bid out the work. After reviewing the bid documents it will then go to the State, then it goes to the Commission. Special Commission Meeting Minutes—03/30/2015 8 Commissioner Kelley said the Commission did not like the process so they asked the City Manager to come back with a process, but as it is laid out the evaluation committee will make a recommendation to the Commission, the Commission can approve or disapprove. Commissioner Pinder asked, why the terms of the loan cannot be amended? He requested to hear concerns from the representative of DEP. Commissioner Santiago asked, will the same committee select the company? Manager Baker said yes, based on the input received concerning this matter he was instructed to look at the process based on the input and he made those adjustments. The Commission will get the recommendation first and their approved recommendation will be submitted to Tallahassee. His preference is to have another set of eyes look at it before presenting it to the Commission. Mayor Taylor said this process is different. She asked, was the original process mandated by the State? Manager Baker replied, yes. Mayor Taylor asked, will the State be amenable to a change in the process? Manager Baker said they have been in communication with them and they said yes. Thomas Montgomery appeared before the City Commission and spoke on behalf of the Clean Water State Revolving Fund from Tallahassee, Florida. Mr. Montgomery said the original process was set up such as the selection committee would recommend a vendor; the State will make sure that vendor is selected following the rules of the approved process, then it will be submitted to the Commission for approval. The State does not approve, they assure that the rules were followed. Mayor Taylor asked, who made up the original rules? Mr. Montgomery said they are following the rules that are set forth by the State and the Federal Government. Mayor Taylor asked, what happens if all companies that submits an RFP are chosen by the State? Mr. Montgomery said the selection committee selects a vendor, rank them, and the number one company will be recommended to the Commission. Commissioner Santiago said the money is a loan that the city has to pay back. Mr. Montgomery said these are federal dollars and there are restrictions that have to be followed. Mayor Taylor asked, how many RFP's can the city put out at a time? Special Commission Meeting Minutes—03/30/2015 9 Mr. Montgomery said the way the RFP process have been submitted to the State, it has been split up into five separate RFP's Commissioner Kelley said his position was to leave the process the way it was. Commissioner Santiago said his recommendation is to defer this until the next Regular Commission Meeting. There being no further discussion, the resolution passed by a 4-1 vote. Commissioner Pinder Yes Commissioner Santiago Yes Vice Mayor Holmes Yes Commissioner Kelley No Mayor Taylor Yes 7. ADJOURNMENT: There being no further business to come before the Commission, it was moved by Vice Mayor Holmes, seconded by Commissioner Kelley to adjourn the meet'ng t 5:34 p.m. AYO" ATTEST: CITY CLERK Special Commission Meeting Minutes—03/30/2015 10