Barfield scrutinizes DID spending

A feud between a merchant and a legal consultant has spilled over to a new arena, leading to questions concerning the spending powers of the city’s Downtown Improvement District.

Ron Soto, owner of Soto’s Optical and president of the Sarasota Downtown Merchants Association, was embroiled in a battle last month with Florida ACLU Vice President Michael Barfield. The two were contesting the city’s regulation of signs — and objecting to signs the other had posted on downtown streets.

The City Commission addressed the signs issue in November, moving to restrict all signs from the public right of way, but the fight has continued. On Nov. 25, Barfield appeared at a meeting of the Downtown Improvement District, on which Soto serves as a board member. There, Barfield listed a series of allegations regarding improper spending by the group.

The issue, Barfield said, pertains to the city’s procurement procedures. When spending more than $5,000 on a project, the city requires the solicitation of at least three bids before that money can be spent. If the total for the project tops $50,000, a competitive bidding process is required.

The DID has funded a number of projects that top the $5,000 mark over the past year. The board has put more than $36,000 toward new lights at Five Points Park, another $14,000 to light trees along Main Street, and spent $15,000 on downtown marketing.

The rub, DID officials and city staff say, is that none of those projects was ultimately the responsibility of the Downtown Improvement District. Because the money was given to an outside organization, which then spearheaded the project itself, the spending is classified as a grant, rather than a contracted purchase.

“The distinction is a grant, that becomes a project of some party other than the city, and their purchasing rules apply,” said John Moran, operations manager of the DID. “That’s differentiated from a project the DID or city directly contracts.”

Mary Tucker, the city’s purchasing manager, confirmed that the city views the two forms of spending differently. Furthermore, Tucker added, there were no specific regulations outlining the process by which an outside organization could seek a grant — it just has to be done and approved at a public meeting, she said.

City Attorney Robert Fournier said there was some gray area, in that the city does not clearly delineate the DID’s spending power. He plans to meet with city staff to clarify the existing regulations and procedures, but does not believe anything would restrict the DID from issuing grants.

Fournier said procurement was just one of several issues Barfield raised concerning the DID, and indicated he believed the personal relationship between Soto and Barfield likely inspired the complaint.

“That doesn’t mean that, if it has some merit, we won’t look at it,” Fournier said.

Barfield suggested there were other factors — including earlier Sunshine law violations by the DID board — but he didn’t deny that the conflict with Soto played some role in his allegations. He said he believed Soto was acting as though he had an authority to speak for the entirety of downtown, and sought more information regarding Soto’s role in the community.

“In searching for some authority to support his assertion that he had that power, I did begin looking into what the sources of his authority were,” Barfield said. “What’s the relationship between the various entities — the merchants group, the DID board and Ron Soto?”

Barfield alleged the group was intentionally skirting the city’s procurement rules. Matters are made murkier by Soto’s dual role on the DID board and as president of the Sarasota Downtown Merchants Association. The DID has voted several times to grant money to the merchants group — votes from which Soto has not been required to recuse himself.

Most notably, the Sarasota Downtown Merchants Association has received more than $50,000 to install lights along Main Street and in Five Points Park, the majority of which was given while Soto sat on the board. The money covered the installation and a year of maintenance, but, going forward, the merchants group will be responsible for the projects, Moran said.

Moran said the deciding factor in this case — and other issues that appear to present a potential conflict of interest — is whether a board member would directly financially benefit as a result of the vote. Although Soto’s store is a short walk from Five Points Park, the city deemed it not to be a conflict of interest.

Fournier said that, while the voting conflict of interest did not seem to be invoked, another potential issue must be addressed. The Florida Statutes prevent a public officer from doing business with one’s agency, though the specific provision addresses the purchase, rent or lease of any goods or services. At this point, Fournier said, he was uncertain about whether or not the grant to the Sarasota Downtown Merchants Association would pose any problems.

“I just want to look and familiarize myself better,” Fournier said. “I need to study the allegations.”

The topic will be revisited at the DID’s Dec. 9 meeting. When Barfield detailed his concerns at the group’s last meeting, the DID board expressed an interest in correcting any missteps it had potentially taken.

“This is obviously an important item,” DID Chairman Mark Kauffman said. “None of us here are professionals, and if we’re doing something in error, we should correct it.”

OUTSIDE FUNDS
Over the past year, the DID has given grants to several outside organizations to help fund downtown improvement projects. Some of that spending includes:

• $36,380 to the Sarasota Downtown Merchants Association, given to install and maintain new tree lights in Five Points Park while removing the previous system.

• $15,000 to the Downtown Marketing Co-op, given as part of a larger fundraising campaign to promote the district.

• $14,080 to the Sarasota Downtown Merchants Association, given to cover the expenses of installing lights in trees within the DID along Main Street.

DID’S BIDS
The city’s procurement process requires its boards to adhere to the following spending guidelines:
• For purchases exceeding $5,000, three independent bids must be solicited.
• For purchases exceeding $50,000, the city’s purchasing department must issue a public invitation to bid.