MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF SEPTEMBER 19, 2011 PRESENT: Chair Suzanne Atwell, Vice Chair Terry Turner, Members Paul Caragiulo, Willie Shaw, and Shannon Snyder, Executive Director Robert Bartolotta, Attorney Robert Fournier, and Secretary Pamela M. Nadalini ABSENT: None The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Atwell at 2:39 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF AUGUST 15, 2011 (AGENDA ITEM CRA-1) Chair Atwell noted CRA consensus to approve the minutes of the Special CRA meeting of August 15, 2011. 2. ADOPTION RE: UPDATE TO THE COMMUNITY REDEVELOPMENT AGENCY (CRA) GRANT GUIDELINES AND POLICIES (AGENDA ITEM CRA-2) Neighborhood and Development Services (NDS) Director Timothy Litchet and Chief Planner Steve Stancel, NDS Department, came before the CRA. Mr. Stancel gave a presentation concerning the history of the modifications to the approval criteria for the CRA grant guidelines and polices; and stated that all 14 organizations have existed for more than one year; that four of the 14 organizations submitted the required documentation; that Staff was directed to return with recommended changes to the CRA grant guidelines and policies; that Staff has been researching the guidelines used by Sarasota County and the Sarasota County Arts Council. Mr. Stancel gave a presentation concerning the 14 recommended changes to the CRA grant guidelines and policies included in the Agenda backup material; and stated that The Players Theater, Boys and Girls Club, Sarasota YMCA, and Friends of Newtown Estates should meet the requirements once required documentation is submitted, Children's First and the Sarasota Ballet will likely meet approval criteria, Westcoast Black Theatre Troupe, Brotherhood of Men, Greater Hurst Chapel, and Trinity Youth and Family Services may meet approval criteria, the Sarasota Chalk Festival and the HOPE Program would not meet approval criteria; that Staff is recommending the CRA not award a grant to the Sarasota Gators as their circumstances have changed since the original application was submitted. Mr. Litchet stated that the following five points should be stressed: The CRA should determine if utilizing a host or community partner agency for the two years of financial information is acceptable, Checks will be issued to the host or community partner agency rather than the agency seeking the grant, Neither an audit nor a review will ensure all non-City monies are expended appropriately by non- profit organizations, Staff recommends the CRA not fund the Sarasota Gators due to significant changes in their Circumstances since the submission of the original application, and Staff suggests NDS Staff work with the Office of the City Auditor and Clerk in advance ensure all necessary documentation is included in the file prior to the issuance of the funds. Book 3 Page 31740 09/19/11 2:30 P.M. Book 3 Page 31741 09/19/11 2:30 P.M. The following people spoke: Denise Kowal indicating artists who participate in the Sarasota Chalk Festival stay up to 2 weeks in the City attracting many visitors, the Sarasota Chalk Festival submitted the grant application timely, the Sarasota Chalk Festival was ranked number one by the CRA Advisory Board, notification of the 11 new criteria was received on September 14, 2011, and requesting the CRA consider a financial review as acceptable for organizations which have a budget of less than $100,000. Tom Aposporos indicating Jaywood Realty has committed $10,000 in cash to the Sarasota Chalk Festival with an additional $5,000 of in-kind services, the private sector is contributing approximately $130,000 to $150,000, and requesting the CRA not require agencies to meet the proposed 11 criteria which were not in effect when the process began seven months. Barbara Langston indicating she is conçerned with the recent activity over the past two weeks, and requesting the Commission direct the City Manager to provide requested information regarding funds allocated to the Newtown Community Redevelopment Area which has not yet been provided. Valerie Buchand indicating guidelines are in place for monies granted to organizations, the approval of organizations to be awarded grants for the Downtown Community Redevelopment Area should be scrutinized as are the organizations in the Newtown Community Redevelopment Area, small programs do not have the necessary funds to pay for an independent financial audit, and requesting an audit be conducted of all organizations located in the Downtown and Newtown Community Redevelopment Areas which are applying for grant funds. Mr. Litchet stated that the 11 new criteria recommended for approval will apply to the 14 organizations seeking grant funds and not just organizations located in the Newtown Community Redevelopment Area. Mr. Stancel stated that Staff contacted various accounting agencies to determine the cost of an audit; that the cost of an audit ranges from $1,000 to $5,000. In response to a comment by Vice Chair Turner indicating considerations should be given to either deleting Item 2 under the initial program requirements or requiring a lower match and deleting the requirement, Mr. Litchet stated that Staff is trying to embrace social infrastructure and build capacity; that he believes some in-kind services can be recorded accurately without providing specifics such as time records to reflect the hours a teacher has worked. Vice Chair Turner stated that Item 4 under proposed Staff changes recommends organizations provide two years of certified financial statements; that an exception reflected in the first year which has not been corrected in the second year as well as the same exception reflected in both years should be reason for rejection; that an item which focuses on children and young adult education and development as well as an objective with the focus to build strong families should be added to Item 5 under the initial program requirements; that he believes art organizations should be excluded from the grant programs offered through the City as art organizations have other avenues to seek grant funds. A discussion ensued concerning capacity building for a new organization and who determines the sustainability. Executive Director Bartolotta stated that other organizations have measured capacity building by a dependency and non-dependency criteria; that organizations which seek less in grant funds from the City each year demonstrates other sources of revenue are being generated; that some funders reduce the amount of grant funds an organization is eligible to receive in the second or third year; that an organization which becomes dependent on City grant funds is not building capacity. Member Shaw stated that he would like to see child development programs included in Item 5 under the initial program requirements. Chair Atwell stated that art organizations should not be excluded from seeking grant funds from the City. Member Snyder stated that allowing new organizations to partner with an Internal Revenue Service (IRS) 501(c)(6) non-profit organization is good as the partnership provides an opportunity for new organizations to become established. A discussion ensued concerning the deletion of physical appearance and transportation in Newtown and the Downtown as a project focus for Item 5 under the initial program requirements to save resources. Member Snyder stated that the application, information guides, pamphlets, or any other source of information should include verbiage in bold letters indicating grant funds should not be incorporated into the organization's budget until approved by the CRA and the Commission. In response to a request by Chair Atwell for Staff to indicate its recommendation, Mr. Litchet stated that the Staff recommendation is the same as recommended on the Agenda request form which is for the CRA to adopt the proposed Staff changes to the CRA grant guidelines and policies with any other changes recommended by the CRA. In response to a question by Chair Atwell asking the Staff recommendation pertaining to the two organizations which do not meet the program requirements, Mr. Litchet stated that the belief is the Sarasota Chalk Festival still does not meet the criteria; that the previous Sarasota Chalk Festival was held under the name of Burns Square although the Sarasota Chalk Festival partnered with 501(c)(6); that the proposed language must be revised if the CRA wishes to award a grant to the Sarasota Chalk Festival. Mr. Bartolotta stated that one issue is Staff was not certain if the Commission direction was to develop policy statements for future years or the current year; that two organizations will be impacted if the proposed changes are imposed in the current year. In response to a question by Member Caragiulo asking who can prepare the IRS 990 Form, Finance Director Chris Lyons, Financial Administration Department, came before the CRA and stated that the IRS 990 Form can be prepared by an independent entity or a staff member of the organization. Vice Chair Turner stated that he recommends the following changes: Item 2 under initial program requirements: add language indicating in-kind contributions shall be subject to reporting requirements but not an audit review Chair Atwell noted CRA consensus to add language indicating in-kind contributions shall be subject to reporting requirements but not an audit review. Item 4 under initial program requirements: add language concerning capacity building to provide a two-year period to build capacity Member Shaw stated that some areas will be difficult as not all start-up organizations may be able to pursue host organizations Item 5 under initial program requirements: add two additional items indicating a focus on child and young adult education and development and building strong families Item 4 under proposed Staff changes: add language to indicate any exception noted in the first of two years or in both years of the financial statements which have not been corrected will be reason for rejection A motion was made by Member Shaw, seconded by Vice Chair Turner, and carried by a 5-0 to move forward with the initial program requirements, the proposed Staff changes to the program requirements, and the four changes to the program requirements previously mentioned by the CRA for future CRA grants. Book 3 Page 31742 09/19/11 2:30 P.M. Book 3 Page 31743 09/19/11 2:30 P.M. In response to a question by Vice Chair Turner asking if the Staff recommendations for the 14 organizations have changed based on the current discussion, Mr. Litchet stated no; that Staff is comfortable with the Staff recommendations included in the Agenda request form. A motion was made by Vice Chair Turner, seconded by Member Shaw, and carried by a 4-1 with Chair Atwell voting no to approve the Staff recommendations as pertaining to the 14 organizations seeking a CRA grant. Vice Chair Turner stated that a possibility for the Sarasota Chalk Festival to receive a grant still exists if the necessary documentation is submitted. 3. ADJOURN Chair Atwell adjourned the meeting at 3:47p:m: SUZANNE ATWELL, CHAIR ATTEST: Vd U NoCa - PAMELA M. NADALINI, SECRETARY