By SUE FINKAM
Carmel City Council Vice President
Finkam
Thank you to the Carmel City Council for supporting the resolution that calls for a thorough review of the Carmel Redevelopment Commission (CRC) actions as they relate to the Hotel Carmichael.
With this resolution, I am proposing that the Carmel Finance Committee take on the responsibility for thoroughly reviewing the expanded cost of the new Carmichael Hotel.
As heard, various members of the public have asked for an external, independent authority perform a comprehensive audit of the CRC. The good news is that this happens annually.
The Carmel Redevelopment Commission, Redevelopment Authority and City of Carmel are all part of this independent, professional audit. During this, all aspects of the CRCs financials and records are subject to audit. This includes cash, receipts, disbursements, bonds, capital assets, minutes, resolutions, ordinances, appropriate approvals and reports prepared for City Council. There is no area regarding the CRC that would not be included. We go a step further in preparing the CAFR, which is the Comprehensive Annual Financial Report. The Carmel City Council authorized paying a few hundred thousand extra dollars to prepare our accounting and financial records, such as asset inventory, to ensure that our departments can go under a more rigorous audit. The audit will begin the first week of April.
The CRC is audited annually by the independent body called the Indiana State Board of Accounts. For 2019, the SBOA will be the auditor of the Redevelopment Authority and the CRC. Their mission statement is to provide “the citizens of the State of Indiana with complete confidence in the integrity and financial accountability of state and local government.”
In whole, the City pays approximately $75,000 each year for the SBOA audit.
To further strengthen the review of the hotel project, this resolution proposes that the Carmel Finance Committee undertake an additional review of actions taken by the CRC which resulted in the hotel coming in at $18.5 million higher than originally estimated.
The finance committee’s purpose is to review ordinances, resolutions and projects involving finance and governance. Given the main questions the public has are around project finances and the supporting statutory authority, this seems like a best, first step.
By having the review done with the finance committee, the entire review is done publicly, differing from the private process used by consultants. In fact, during the hotel review process done by this committee in 2017, 40 to 50 members of the public participated by attending. We spent hours of review, in public, which included project consultants and CRC members.
I am suggesting this review start March 18, and continue on March 25 and April 1. It is also my hope that these meetings can be held in chambers and recorded for members of the public to view online or at home if they desire.
The review would focus on the actions taken by the CRC since receiving approval in September 2017, the statutory authority that allows them to do each step and the impact on the budget resulting from each decision. It is my intent to have the finance committee joined by an outside attorney, hence the dollars included in the resolution. I will also ask the CRC to make its consultants available to the council at CRC expense. I expect to have included the CRC attorney, the City controller, the bond consultant, the hotel consultant engaged throughout the process, the construction partner and, if needed, Marriott Hotels.
The review will end by the Clerk’s office compiling a summary report for finance committee to approved, and to be released publicly. Should there be items of concern or dispute, we can vote to have those items looked at more carefully by consultants at the conclusion of this review.
Regardless of the outcome of this review, I believe that it’s in the best interest of the CRC and City Council to determine a better way in which to collaborate regarding communication, financial management and project leadership. Following the conclusion of this review, I will work with legal council to draft a proposed interlocal agreement for a better working relationship between the CRC and the Council. To this end, together, we can create a mechanism for better insight into CRC actions by all council members and the public.
In summary, I am confident the finance committee can do a comprehensive, public review of this project, that will complement the State Board of Account’s annual comprehensive audit. I move we approve this resolution.