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220-95 RDA RESOLUTION NO. 220-95 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY ESTABLISHING THE MANAGEMENT FEE BETWEEN THE CITY OF MIAMI BEACH (CITY) AND THE MIAMI BEACH REDEVELOPMENT AGENCY (AGENCY) FOR THE PROVISION OF MANAGERIAL AND ADMINISTRATIVE SERVICES BY THE CITY TO THE AGENCY AND RATIFYING THE METHOD FOR PAYMENTS FROM THE AGENCY TO THE CITY FOR SUCH SERVICES RETROACTIVELY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1994 AND ENDING SEPTEMBER 30, 1995 AND ESTABLISHING THE MANAGEMENT FEE AND AUTHORIZING THE METHOD FOR PAYMENT FOR THE CURRENT FISCAL YEAR WHICH BEGAN OCTOBER 1, 1995 AND WILL END SEPTEMBER 30, 1996. WHEREAS, each year, the Office of Management and Budget of the City establishes the management fee for each redevelopment area and that amount is incorporated in the budget prepared by the Agency for each area and identified as management fee; and WHEREAS, these budgets are subsequently approved and adopted by the Agency Board on an annual basis; and WHEREAS, for fiscal Year 1995, the amounts approved in the budget were deducted form the tax increment proceeds the Agency received from the City in December, 1994; and WHEREAS, the Agency Board is requested to retroactively approve the management fee and method of payment for the Fiscal Year beginning October I, 1994 and ending September 30, 1995; and WHEREAS, for Fiscal Year 1996, which began on October I, 1995 and will end on September 30, 1996, the Agency Board approved budgets for each area at its meeting of September 27, 1995; and WHEREAS, the Administration recommends that the method of payment for FY 96 management fee be a deduction from the tax increment proceeds the Agency will receive from the City in December, 1995, concurrent with a review of the financial position of the Agency. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that for the provision of managerial and administrative services by the City of Miami Beach to the Miami Beach Redevelopment Agency take the follwing actions: Section 1. Establishes the management fee between the City and the Agency and ratifies the method of payment from the Agency to the City for such services retroactively for the Fiscal Year beginning October 1, 1994 and ending September 30, 1995 i and Section 2. Establishes the management fee and authorizes the method of payment for the current Fiscal Year which began October 1, 1995 and will end September 30,1996. PASSED AND ADOPTED THIS 11 th DAY OF ATTEST: ~~, SECRETARY JGP:LMW FORM APPROVED REDEVElOPMENT AGENCY GENElW. COU"l" By 11f Irfi jL Date ~. J. I 9 'is . --- Miami Beach Redevelopment Agency 1700 Convention Center Drive Miami Beach, Florida 33139 Telephone: (305) 673-7193 Fax: (305) 673-7772 REDEVELOPMENT AGENCY MEMORANDUM NO. 95-63 October 11, 1995 TO: FROM: SUBJECT: Chairman and Members of the Board of the Miami Beach Redevelopment Agency Jose GarCia-pedrosa/! Executive Director A RESOLUTION OF TH MIAMI BEACH REDEVELOPMENT AGENCY ESTABLISHING THE MANAGEMENT FEE BETWEEN THE CITY OF MIAMI BEACH (CITY) AND THE MIAMI BEACH REDEVELOPMENT AGENCY (AGENCY) FOR THE PROVISION OF MANAGERIAL AND ADMINISTRATIVE SERVICES BY THE CITY TO THE AGENCY AND RATIFYING THE METHOD FOR PAYMENT FROM THE AGENCY TO THE CITY FOR SUCH SERVICES RETROACTIVELY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1994 AND ENDING SEPTEMBER 30, 1995 AND ESTABLISHING THE MANAGEMENT FEE AND AUTHORIZING THE METHOD FOR PAYMENT FOR THE CURRENT FISCAL YEAR WHICH BEGAN OCTOBER 1, 1995 AND WILL END SEPTEMBER 30, 1996. RECOMMENDATION: It is recommended that the Agency Board approve the attached Resolution which establishes the management fee to be paid to the City of Miami Beach (City) by the Miami Beach Redevelopment Agency (Agency) for the provision of managerial and administrative services by the City to the Agency and ratifying the method for payment from the Agency to the City for such services retroactively for FY 95 and authorizing the method of payment for FY 96. S()UTti f)()I~~ l?edevel()pment ()Istrict CIIT C~~~l? l?edevel()Dment.l)istrict AGEM)A. ITEM l'-D October 11, 1995 BACKGROUND: Each year, in the preparation of the budget, the Office of Management and Budget of the City establishes the management fee for each redevelopment area. That amount is incorporated in the budget prepared by the Agency for each area and identified as management fee. These budgets are subsequently approved and adopted by the Agency Board on an annual basis. For Fiscal Year 95, the amounts approved in the budgets were as follows: South Pointe City Center TOTAL $465,000 $230,000 $695,000 These approved amounts were proceeds the Agency received December, 1994. deducted from the from the tax City of Miami increment Beach in The Agency management October I, Board lS requested to retroactively approve the fee and method of payment for the Fiscal Year beginning 1994 and ending September 30, 1995. For Fiscal Year 96, which began on October I, 1995 and will end on September 30, 1996, the Agency Board has approved management fees for each area as follows: --South pointe --City Center TOTAL $414,000 $414,000 $828,000 The Administration recommends that the method of payment for the FY 96 management fee be a deduction from the tax increment proceeds the Agency will receive from the City in December, 1995. Concurrent with this payment, a review of the Agency's financial position will be undertaken. Should payment of this fee pose a financial burden to the Agency, the City will work with the Agency to develop alternate terms of payment. The Agency Board is being requested to approve the management fee as adopted in the budget for FY 96 at their meeting of September 27, 1996 and to authorize the method of payment as presented for consideration above. ANALYSIS: In the audit of the Redevelopment Agency for Fiscal Year 1994, it was noted that although the management fee is included in the budgets for both the South Pointe and City Center redevelopment areas, the methodology for calculating the fees was not formally approved by Resolution of the Agency. It was recommended that the Agency document the manner in which the management fee lS calculated and the proposed method for payment. Attached are breakdowns of the management fees for Fiscal Years 95 and 96 as prepared by the Office of Management and Budget, In concert with the Agency, for your information. CONCLUSION: The Agency Board should adopt the attached Resolution retroactively establishing the management fee and approving method of payment for Fiscal Year 1995 and establishing the management fee and authorizing the method of payment for Fiscal Year 1996. Attachments JGP:LMW RDA Management Fee FY 94/95 Salary + Fringes Reimbursement to General Fund Property Mgt., Computer/Comm Support. Risk Managment $602,291 $92,709 TOTAL $695,000 Dept Code Position Salary @ % Fringes TOTAL DIRECT CHARGES 530 Asst City Manager/DDHPS Director @ 50% $45,840 $6,876 $52,716 530 Special Projects Coordinator @ 100% $51,610 $7,742 $59,352 530 Administrative Secretary @ 100% $27,418 $4,113 $31,531 530 Community Development Coordinator @ 100% $54,107 $8,116 $62,223 530 Real Estate Economist @ 15% $8,154 $1,223 $9,337 530 Redevelopment Specialist @ 100% $39,503 $5,925 $45,428 520 DDHPS Deputy Director @ 50% $42,258 $6,338 $48,594 310 City Manager @ 20% $26,149 $3,922 $30,072 210 City Clerk @ 20% $14,411 $2,162 $16,572 1410 City Attorney @ 20% $23,012 $3,452 $26,463 1410 Chief Deputy City Attorney @ 30% $34,129 $5,119 $39,248 1410 1st Asst City Attorney @ 70% $51,800 $7,770 $59,570 360 Finance Director @ 40% $38,528 $5,779 $44,307 360 Asst Finance Director @ 25% $17,035 $2,555 $19,591 340 OMB Director + Budget Officer $5,000 370 Human Resources Department $2,500 Merits Not Shown @ 8% $49,309 $7,936 $57,245 TOTAL $523,263 $79,028 $602,291 INDIRECT CHARGES: 502 Property Management $50,000 504 Computer/Communications Support $17,709 505 Risk Managment $25,000 TOTAL $92,709 $92,709 TOTAL $695,000 MANAGEMENT FEE: South Pointe $465,000 City Center $230,000 RDA Management Fee FY 95/96 Salary + Fringes ReimbursemJ ent to General Fund Property Mgt., Computer/Comm Support/Risk Management $718,000 $110,000 TOTAL $828,000 Dept Code Position Salary @ % Fringes TOTAL DIRECT CHARGES 530 Asst City Manager/DDHPS Director @ 50% $45,840 $6,876 $52,716 530 Special Projects Coordinator @ 100% $51,610 $7,742 $59,352 530 Special Projects Coordinator @ 100% $50,000 $7,500 $57,500 530 Administrative Secretary @ 100% $27,418 $4,113 $31,531 530 Community Development Coordinator @ 30% $16,232 $2,435 $18,667 530 Real Estate Economist @ 40% $21,744 $3,261 $25,005 530 Redevelopment Specialist @ 100% $39,503 $5,925 $45,428 520 DDHPS Deputy Director @ 50% $42,256 $6,338 $48,594 310 City Manager @ 20% $26,149 $3,922 $30,072 640 Environmental Specialist @ 50% $31 ,11 9 $5,491 $36,610 210 City Clerk @ 20% $14,411 $2,162 $16,572 1410 City Attorney @ 20% $23,012 $3,452 $26,463 1410 Chief Deputy City Attorney @ 40% $45,505 $6,825 $52,331 1410 1st Asst City Attorney @ 100% $74,000 $11,100 $85,100 360 Finance Director @ 40% $38,528 $5,779 $44,307 360 Asst Finance Director @ 30% $20,442 $3,066 $23,508 340 OMB Director + Budget Officer $0 $0 $5,000 370 Human Resources Department $0 $0 $2,500 Merits Not Shown @ 8% $49,339 $7,405 $56,744 TOTAL $617,108 $93,393 $718,000 INDIRECT CHARGES: 502 Property Management $60,000 $0 $60,000 504 Computer/Communications Support $25,000 $0 $25,000 505 Risk Management $25,000 $0 $25,000 TOTAL $110,000 $0 $110,000 TOTAL $828,000 MANAGEMENT FEE: South Pointe $414,000 City Center $414,000 TOTAL $828,000