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Agenda 05-15-031. Call to Order. COMMUNITY REDEVELOPMENT AGENCY Thursday, May 15, 2003 Commission Chambers Boynton Beach 6:30 P.M. II. Roll Call. III. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda. B, Adoption of Agenda. IV. Consent Agenda. (pg. 1434) V. Public Audience. VI. Public Hearing IX. New B,usiness ~- Moved up D. Consideration of Direct Incentive/~equest from (The Arches Project. (pg. 1683) / Boynton Ventures L.L.C. / VII. Director's Report: (pg. 160~/ A, Updates(pg. 1602) VIII. Old Business: (pg. 1608) Any person who decides to appeal any decision of the Community Redevelopment Advisory Board with respect to any matter considered at this meeting will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. The CRA shall furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits of a service, program, or activity conducted by the CRA. Please contact Douglas Hutchinson at 561-737-3256 at least twenty-four hours prior to the program or activity in order for the CRA to reasonably accommodate your request. A. Ocean District Plan Presentation from City Staff. (pg. 1609) B. Consideration of Adoption of Investment Policy. (pg, 1610) ~ Consideration of Human Reso~c. es Manual. (pg. 1611) / IX. ~New Business: (PO 1612) ,/ / /A> Consideration of Deprmit ~ha--~e of the Hall Property.--(pg.~ / B.' ~sid_.crCf~Burkhardt Construction for Des~°f ~ Beyrlto~ach aouleva,~/Extension, Promenade and Rive~-Wa!~.~18) ~. Consideration of Revisi,qh to Direct Incentive Program for Heart of B°ynton Projects. (pg. 1682)~// D. Consideration of RFQ for Feasibility Study for the Savage Creatures of Ancient Seas Project. (pg. 1701) E. Consider Recommendation to Limit "Payment in Lieu CBD. (pg 1728) ~,/ ~ .t~== E.._C_m.~id e rat io ~~~3~- G. Consideration of Core Grant Payment (pg. 1766) of Parking" Program in the XI. Other Items: A. Purchasing Manual (Moved from Consent Pg. 1485) Adjournment. Any person who decides to appeal any decision of the Community Redevelopment Advisory Board with respect to any matter considered at this meeting will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. The CRA shall furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits ora service, program, or activity conducted by the CRA. Please contact Douglas Hutchinson at 561-737-3256 at least twenty-four hours prior to the program or activity in order for the CRA to reasonably accommodate your request. COMMUNITY REDEVELOPMENT AGENCY PURCHASING MANUAL Revised 5/15/2003 TABLE OF CONTENTS TERMS AND DEFINITIONS ................................................................... 2 BIDDING & REQUISITIONS ................................................................... 8 BIDS & PROPOSALS ......................................................................... 10 CHANGE ORDERS ............................................................................. 17 REQUEST FOR PROPOSALS ............................................................... 19 PROFESSIONAL SERVICES ................................................................ 21 CONSTRUCTION CONTRACTS ............................................................. 24 PURCHASING / PETTY CASH ............................................................... 26 PURCHASING CREDIT CARD ............................................................... 27 ASSIGNMENT/CONTROL OF PURCHASING CREDIT CARD .................... 28 CRA PURCHASING POLICY MANUAL TERMS AND DEFINITIONS PURPOSE: As used throughout the Purchasing Policy Manual the words and terms defined in this section shall have the meanings set forth below unless the context in which they are used clearly requires a different meaning or a different definition as prescribed for a particular section or portion thereof. DEFINITIONS: Addendum means a written or graphic instrument issued prior to the opening of bids or proposals which clarifies, corrects or changes the bidding documents or contracts. 2. Award means the acceptance of a bid, offer, or proposal by the CRA. Bid Bond means a form of bid security executed by the bidder as principal and by a surety to guarantee that the bidder will enter into a contract within a specified time and furnish any required performance bond. Blanket Purchase Order is a purchase order that covers the purchase of supplies of a like nature for a stipulated period of time (i.e. 12 months). Brand Name or Equal Specification means a specification limited to one or more items by manufacturers' name or catalog number to describe the standard of quality, performance or other prominent characteristic needed to meet CRA requirements. Capital Purchases means all tangible personal property having an original acquisition cost of $1,000.00 or more per unit and a life expectancy of more than one year. This would include the capitalized purchase of software. Change Order is a written order amending a purchase order. Purchase orders may be amended to correct errors, omissions, discrepancies, acceptable overruns, freight costs or amendments to contracts which entail additional cost. Commodities include but are not limited to goods, equipment, materials and printing which is purchased, leased or otherwise contracted for by the CRA. Competitive Bids or Competitive Offers means the receipt of bids or offers submitted by responsive qualified bidders or offerors. 10. Competitive Selection and Negotiation is a method of purchasing whereby qualified professional firms are invited to submit "Letters of Interest", proposals or qualifications and are short listed by an appropriately appointed evaluation committee. 11. Construction means the process of building, altering, repairing, improving or demolishing any structures, buildings or improvements to real property. It does not include the routine operation, repair or maintenance on existing structures, buildings or real property. 12. Construction Change Order is a written order directing the contractor to make changes which the change clause of the construction contract authorizes. Construction Change Orders will require CRA Director approval. 13. Consultant's Competitive Negotiations Act (CCNA) is the common name for Section 287.055 of the Florida Statutes concerning the procurement of Architectural, Engineering (including testing), Landscape Architecture and Registered Land Surveying Services. 14. Contract means all types of binding agreements including purchase orders for the procurement of supplies and contractual services. 15. Contractor means any person or business having a contract with the CRA to perform a service or sell a product. 16. Contractual Services means the rendering of a contractor of their time and effort rather than the furnishing of specific commodities, materials, goods, equipment and other personal property. The term applies only to those services rendered by individuals and / or firms who are independent contractors. 17. Debarment or Suspension means a disqualification of a business or person from receiving invitations for bids, requests for proposals or the award of contracts by the CRA because of previous illegal or irresponsible action or the failure or the inadequacy of performance for a specific period of time commensurate with the gravity of the offense. 18. Designee means a duly authorized representative of a person holding a superior position. 19. 20. 21. 22. 23. 24. 25. 26. Fixed-Price Contract means a contract whereby the price is fixed for the entire life of the contract or until a set quantity of goods or services is delivered. General Services means support services performed by an independent contractor requiring specialized knowledge, experience or expertise. The service rendered does not consist primarily of acquisition of equipment or materials. Examples of general services are janitorial, pest control services and maintenance of equipment. General Services are not normally procured through Requests for Proposals or Invitations to Bid unless otherwise provided for herein. Procurement of general services may include subjective evaluation factors on the part of the CRA of the submitting firms. Governmental Agency means any agency of the Federal, State, or any local government or local governmental entity. Invitation to Bid means a written solicitation for competitive sealed bids with the title, date, and hour of the public bid opening designated and specifically defining the commodities or contractual services for which bids are sought. The invitation for bid will be used when the CRA is capable of specifically defining the scope of work for which a contractual service is required or when the CRA is capable of establishing precise specifications defining the actual commodities required. The invitation to bid will include instructions to bidders, plans, drawings and specifications, if any, a bid form and other required forms and documents to be submitted with the bid. Request for Letters of Interest is a method of selecting a vendor whereby all vendors are invited to submit a summary of their qualifications and state their interest in performing a specific job or service. Mandatory Bid Amount means the dollar threshold at which the formal bid process is required. The Mandatory Bid Amount is currently $10,000. The current known requirement of any commodity or service will not be divided to circumvent the requirement of the Mandatory Bid Amount. Minority Business Enterprises (MBE) is a business in which a recognized minority group owns more than 50% of the stock or a business owned by a person of minority status. Minority Businesses must be qualified through certification. Multiple-Award Contracts means contracts which provide awards to more than one vendor for the same item. The CRA Director may use these contracts when it is determined that the use of more than one vendor is in the best interest of the CRA. 4 27. 28. 29. 30. 31. 32. 33. 34. Negotiations for Professional Service means the act of determining terms, conditions and prices for the performance of professional services. A negotiation committee or CRA Board Designee will negotiate with the top ranked candidate from the competitive in an attempt to reach agreement on contract term for the services required or bid. Notice of Award means the written notice 'by the CRA to the apparent, successful bidder or offeror stating that upon compliance with the conditions precedent to contract within the time specified, the CRA will sign and deliver a contract. Open-end Contract means a contract whereby an indefinite quantity of supplies, services, or constructions are to be procured over an identified time span when needed. Performance/Construction Bond means a bond of a contractor/vendor in which a surety guarantees to the CRA that the work /services will be performed in accordance with the contract documents and may, at the discretion of the CRA, include an irrevocable letter of credit issued by a financial institution. Procurement is the buying, purchasing, renting, leasing or otherwise obtaining any supplies, services, construction or any other item(s) including description of requirements, selection and solicitation of sources, preparation and award of contracts and all phases of contract administration. Professional Services means any services where the CRA is obtaining advice, instruction or specialized work from an individual specifically qualified in a particular area. Professional services may include a report or written advice; however, the main thrust of the service is not considered labor, but the exercise of intellectual ability. These services may be procured by Letter of Interest or requests for proposals and selected through Competitive Selection and Negotiation. Purchase Order means a purchaser's document to formalize a purchase transaction with a vendor conveying acceptance of a vendor's proposal. The purchase order should contain statements as to quantity, description and price of the supplies, services or construction ordered and applicable terms as to payment, discounts, date of performance, transportation, insurance and other factors Quotation means an informal (verbal) or formal (written) notice by a vendor to the CRA stating the prices, terms and conditions under which they will furnish certain goods or services. 35. 36. 37. 38. 39. 40. 41. 42. 43. Request for Proposals means all documents whether attached or incorporated by reference for soliciting sealed proposals. Responsible Bidder or Responsible Offeror means the person who has the capability in all respects to perform fully the contract requirements and the tenacity, perseverance, integrity, experience, ability, reliability, capacity, facilities, equipment, financial resources and credit which will give reasonable expectation of good faith performance. Responsive Bidder or Responsive Offeror means a person who has submitted a bid that conforms in all material respects to the invitation to bid or request for proposals. Selection and Negotiation Committee is a group of persons appointed by the CRA Board to rank in preferential order those professional firms or individuals interested in providing services on a particular project and to negotiate a final contract with the highest ranked firm. Services means the furnishing of labor, time and effort by a contractor not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. This term shall not include employment agreements or collective bargaining agreements but shall include both professional and general services. SNAPS is the State Negotiated Agreement Price Schedule (SNAPS) which is a state program created to eliminate comparative pricing for purchases as long as they meet the requirements of: recycled content, conservation factors or environmentally desirable characteristics. Specification means any description of the physical or functional characteristics or of the nature of a supply, service or construction item. It may include a description of any requirement for inspecting, testing or preparing a supply, service or construction item for delivery. Specifications may also contain provisions for inclusion of factors which will lead to the ultimate calculation of the lowest total cost. All specifications shall seek to promote overall economy for the purpose intended and encourage competition in satisfying the CRA's needs and shall not be unduly restrictive. Sole Brand means the only known brand or only reasonable brand capable of fulfilling the needs of the CRA. Sole Source means the only known vendor or the only reasonable vendor capable of providing a service or commodity to the CRA. 44. State Contract is the State of Florida Purchasing Division's formal bidding process and award of various equipment and services contracts extended for use by all political subdivisions (entities). 45 Supplies mean all property, including but not limited to, equipment, material, printing and equipment leases but specifically excluding the acquisition of interests in real property by the CRA. 46. Surety means an organization which, for consideration, promises in writing to make good the debt or default of another. The surety must hold a certificate of authority as an acceptable surety on federal bonds published in the current Circular 570, United States Department for the Treasury and the Federal Register effective July 1 annually, as amended. 47. Surplus Property means any property belonging to the CRA, which is capable of being used, but is in excess of the normal operating requirements of the CRA. This property may be disposed of by auction or other means which proves to be the most beneficial to the CRA as determined by CRA Board. The CRA Board will approve the method of sale or disposal of the property. CRA PURCHASING POLICY MANUAL BIDDING AND REQUISITIONS PURPOSE: This policy is to establish unified purchasing procedures in determining the requirements for requisitions which will be processed into purchase orders and direct payment requisitions. POLICY: The purchase of all budgeted goods and services below the mandatory bid amount of ten thousand dollars ($10,000) must follow the quotation and approval guidelines stated below. Purchases shall not be artificially divided to circumvent the approval process. Purchase Amount Quotation Process Approval Level- Purchase Total Purchase Each Item Total Purchase Order Type Less than $500 No Quotation CRA Director* Direct Payment Requisition/P. O. $500 to $1,999 Three Verbal Quotes CRA Director* Direct Payment Requisition/P. O. $2,000 to $4,999 Three Written Quotes CRA Director* Direct Payment Requisition/P. O. $5,000 to $9,999 Three Written Quotes CRA Chairman or Direct designee & CRA Payment Director* Requisition/P. O. $10,000 or more Formal Bid Process CRA Board Formal Bid * or assigned Designee. 1. Direct Payment Requisition. All requisition forms must be submitted to CRA Director or designee providing the amount to be paid, the vendor name and vendor address. The supporting invoice must be attached to the requisition. 2. Purchase Requisition less than $500. All Purchase Requisitions totaling less than $500 per purchase may be processed with a Form 121 and the invoice attached to the Form 121. All Form 121's are forwarded directly to the CRA Director for approval and returned to the Controller. Price quotes are not required for purchases under this amount. 3. Purchase Requisition totalinq between $500 to $1,999. All Purchase Requisitions totaling between $500 and $1,999 will require three verbal quotes. The verbal quotes will be summarized and attached to a Form 121. All Form 121's are forwarded directly to the CRA Director for approval and returned to the Controller for payment or issuance of a purchase order. 4. Purchase Requisition totalinq 5etween $2,000 to $4,999. All Purchase Requisitions totaling between $2,000 and $4,999 will require three written quotes. The written quotes will be attached to a Form 121. Form 121's shall be forwarded directly to the CRA Director for approval and returned to the Controller for payment or issuance of purchase order. 5. Purchase Requisition totalinq between $5,000 to $9,999 All Purchase Requisitions totaling between $5,000 and $9,999 will require three written quotes. The written quotes will be attached to a Form 121 and forwarded directly to the CRA Director. The CRA Director and CRA Chairman or designee will review the quotes, approve one and return to the Controller for payment or issuance of a purchase order 6. Purchase Requisition over $10,000. All Purchase Requisitions over $10,000 will require a formal bid process and the approval of the bid by the CRA Board prior to the issuance of a purchase order. After all procedures have been met the ultimate responsibility for informing the Controller to issue a purchase order or check rests with the CRA Director. CRA PURCHASING POLICY MANUAL BIDS & PROPOSALS PURPOSE: Formal sealed bids and proposals are the most effective methods for soliciting competitive prices from vendors in government agency purchasing. This policy will establish procedures to use for sealed bids and proposals. POLICY: All contracts of the CRA shall be awarded by competitive sealed bidding except as otherwise provided in the purchasing policy manual. All Bids, Request for Proposals (RFP's), Request for Qualifications (RFQ's), Contracts, Agreements, Leases, etc., shall at a minimum meet the insurance requirements contained in all Bids, RFP's, RFQ's or negotiated documents. 1. Excluded from the Formal Bid Process are the following processes: A. Competitive Sealed Proposals: A comparison of the prices of responsive/responsible bidders to determine an award by evaluating the proposal on a cost and qualitative basis as well as the ability of proposers to meet the bid specifications. · A description of the item or service to be purchased (statement of work) shall be prepared. · The following are specific criteria that will be used to evaluate the proposal along with the stated relative order of importance: · Managerial capability. · Technical acceptability and performance requirements. · Reasonableness of price. approach in meeting · Experience in the line of work being considered including references, may be asked for. · Staff capabilities along with resumes of key individuals who will work on the project may be asked for. · A cost breakdown of the proposed price will be asked for. lO B. Multi-Step Competitive Sealed Bid is generally a two step process in which the award is based on price, but available specifications are inadequate or to general to permit full and free competition without technical evaluation and discussion: First Phase: Issue request for information or proposal to which interested, potential suppliers respond with either necessary information or unpriced technical offers. Second Phase: Potential suppliers who submitted technically acceptable offers are invited to submit competitive sealed prices based on their technical offers. Award is to the lowest responsive/responsible bidder. C. Designated Professional Services are services where the CRA is obtaining advice, instruction, or specialized work from an individUal specifically qualified in a particular area. The procurement of professional services does not lend itself to normal competitive bidding and price competition alone. D. Emergency Procurement allows the CRA Director to make procurement of commodities or contractual services where the cost does not exceed ten thousand ($10,000) when there exists a clear and present threat to public health, property, welfare, safety or other substantial loss to the CRA, provided however, that such emergency procurement shall be made with such competition as is practical under the circumstances. Sole Source Procurement may be awarded for a supply, service or construction item without competition when it is determined that there is only one source available such as repair~s or additions from the original equipment manufacturer, only supplier in the area, franchised or licensed distributor or service, patented or proprietary item, or by negotiation where the procurement by competitive procedures is not feasible nor practical. Any vendor identified by staff as a sole source vendor must be supported in writing. State Contract is the State of Florida Purchasing Division's formal bidding process and award of various equipment and services contracts extended for use to all political subdivisions (entities). l! "Piggy-backing" onto contracts by other governmental agencies (i.e., county, school board) is encouraged when it is determined that this method of procurement will provide the best product/service at the best price without compromising specifications or quality desired. This method of procurement should be considered prior to using any other method set forth regardless of quantity or monetary value of the procurement. Supporting documents will be submitted with requisition to the Controller as well as a tab sheet and/or letter of award that clearly specifies the product or service, prices, entity, and bid number and term of contract. The contract must be an open active contract. RESPECT of Florida is a registered service mark of The Florida Association of Rehabilitation Facilities, Inc. which is the central non- profit agency for purchasing from the blind or other severely handicapped. A catalog is available in the CRA Office for the procurement listings which include: computers, first aid and safety products, janitorial products, municipal products, office products, promotional products, and services. PRIDE of Florida is the Prison Rehabilitation Industries and Diversified Enterprises, (PRIDE) Inc. that is a non-profit, self-funded corporation chartered by the State of Florida in 1981 to provide meaningful training and work experience to inmates in Florida's correction institutions. A catalog is available in the CRA Office of all products, prices, and contact person. SNAPS is the State Negotiated Agreement Price Schedule (SNAPS) which is a State program created to eliminate keeping comparative pricing for purchases as long as they meet the requirements of: recycled content, conservation factors or environmentally desirable characteristics. K. Contracts with The City of Boynton Beach for direct services. When a Formal Sealed Bid Process is used for purchases of $10,000 or more the following process shall be used? A. Invitation for Bids. An Invitation for Bids shall be issued for each solicitation for offers equal to or exceeding the mandatory bid amount and shall include a purchase description and all terms and conditions applicable to the procurement. B. Bid Specifications. Specifications for all bids should be provided by hard copy and on a 3 ¼ or CD. 12 C. Insurance. Insurance is required to safeguard the CRA from all claims resulting from damage to property and/or injury to persons caused by the vendor or their actions. The successful bidder shall be required to obtain, at their own expense, all minimum insurance coverage required under the terms and conditions of all Bids, Request for Proposal (RFP), Request for Qualifications (RFQ), Contracts, Leases, and Agreements. Do Bonds. Bonds offer tangible protection in the form of monetary assurances that the bidder will meet their obligations. For bids of $25,000 or more, the successful bidder shall furnish a surety bond as a security for faithful performance of order(s) awarded as a result of the bid and for payment of all persons performing labor and on furnishing materials in connection therewith. Surety of such bond should be in the amount equal to the bid. Simultaneously with the delivery of the executed contract, the successful bidder shall deliver to the CRA an executed bond or a letter of credit in the amount of 100 percent of the accepted bid as security for faithful performance of the contract and for payment of all persons performing labor or furnishing materials in connection therewith. The attorney-in-fact that signs the bond must file a certificate and effective power of attorney with the bond. Bonds must be secured by the bidder at his own cost and generally may be classified as: Bid Bond or Bid Security. This is a document, usually in an amount of five percent of the bid, which guarantees that the bidder will enter into a contract with the CRA. Bid Bonds protect the CRA from erroneous or deliberate Iow bids which the vendor has no intention of honoring. Should the bidder fail to enter into a contract, the bid bond is forfeited. Bid security must be submitted with the bid and can be in the form of a certified check, cash or bond. The awarded vendor's Bid Security will be returned after receipt of a Performance Bond or a Letter of Credit in the amount of 100% of the bid, unless otherwise provided for in the Invitation to Bid. Performance/Construction Bond. This bond is a surety instrument guaranteeing that the vendor will perform according to the terms of the contract and is generally in an amount of 100% of the bid. This bond affords protection from non-performance in completion of major contracts. Should the vendor default, the bond is cashed and the CRA may then utilize the funds to complete the contract with another vendor. Performance bonds are submitted upon award of contract prior to the CRA signing agreements. · Cash Bond. In the amount of the bid or contract award. · Irrevocable Letter of Credit. Sometimes used in lieu of a bond in the case of some construction projects or multi-year contracts. E. Bid Conditions. In addition to the general conditions of most formal bids some bids require special conditions that pertain specifically to the bids in question. Conditions differ from specifications in that conditions refer to requirements which must be met by the bidder before specifications of his bid are even considered. Public Notice/Request to Advertise. Public notice shall be given a minimum of eight (8) calendar days prior to the date set forth therein for the opening of bids. Such notice shall include publication in a newspaper of general circulation no later than eight (8) calendar days prior to bid opening. The notice shall state the bid title, scope of services or reason for the bid, and place, date, and time of bid opening. G. Bid Opening. Time of Bid Receipt. The CRA Director must receive bids no later than the time and date identified in the Invitation for Bid. Bids received after this time shall be returned unopened to the bidder. The Secretary will stamp date and record the time received on all bids held for formal bid opening. The CRA reserves the right to consider bids that have been determined by the CRA to be received late due to mishandling by the CRA after receipt of the Bid and no award has been made. Public Bid Opening. All bids received shall be publicly opened in the presence of witnesses at the place designated in the Invitation for Bids All Bids Unopened. If all bids are not opened at the assigned receiving date and time of the bid, for any reason other than failure of the vendors to present their bids or cause their bid to be 14 presented at the appropriate time, the bid opening may occur the following workday at the same time as originally scheduled. H. Bid Acceptance and Bid Evaluation. Bids shall be unconditionally accepted without alteration or correction, except as authorized in purchasing policies. Bids shall be evaluated based on the requirements set forth in the Invitation for Bids, which may include criteria to determine suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award, excluding cash discounts, shall be objectively measurable, such as trade discounts, transportation costs, and total or life cycle costs. The Invitation for Bids shall set forth the evaluation criteria to be used. Corrections or Withdrawal of Bids. Corrections or withdrawal of inadvertently erroneous bids shall be permitted up to the time of bid opening. After bid opening, no changes in bid prices or other provisions shall be permitted; provided however, the CRA Director or his designee shall have the authority to waive minor irregularities as provided by law or correct obvious calculation errors. Bid Evaluation and Award. Bids should be evaluated based on the requirements set forth in the Invitation to Bid, which may include criteria to determine acceptability, such as inspection, testing, quality, workmanship, delivery, service, price and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs and total or life cycle cost, etc. The Invitation to Bid shall set forth the evaluation criteria to be used. The contract shall be awarded to the lowest responsible bidder whose bid meets the requirements and criteria set forth in the Invitation to Bid. In determining "lowest responsible bidder", in addition to the bid evaluation criteria above, the following may be considered: · The ability and skill of the bidder to perform the contract. Whether the bidder can perform the contract or provide the supplies/services as required without delay or interruption within the time specified. · The quality of performances of previous contracts or services with the CRA or other entities. Tie Bids. If two or more bidders are tied, the tie may be broken and the successful vendor selected by the following criteria presented in order of importance. · Quality of the items or services bid if such quality is ascertainable. · Delivery time if provided in the bid by the bidders. · Location of the vendor with the following award preferences: CRA Vendor City of Boynton Beach vendor Palm Beach County vendor Florida vendor If the above criteria are impossible to determine with any reasonableness or do not resolve the issue, the award will be given to that vendor whose bid was received first as indicated by the date stamp and time recorded on the envelope containing the bid. Lo Contract Extension. All invitations for bids for open-end contracts shall, when practical, provide for an extension of the contract for a time period up to the amount of the original time period, upon mutual consent of the buyer and seller and written analysis by the CRA Director that renewal is in the best interest of the CRA. Any contract extension of $10,000 or less will require the approval of the CRA Director, and contract extensions above $10,000 will require approval of the CRA Board. Cancellation of Requests. A request for proposals, invitation for bids or request for qualifications may be canceled and/or any or all responses may be rejected in whole or in part when it is in the best interest of the CRA. The reasons therefore shall be made part of the CRA file. CRA PURCHASING POLICY MANUAL CHANGE ORDERS PURPOSE: A change order is a written order amending a purchase order. Purchase orders may be amended to correct errors, omissions, discrepancies, acceptable overruns, freight costs or amendments to contracts that entail additional cost. Some project costs cannot be identified until the initial work has been completed. POLICY: A change order will be issued prior to invoice payment for the following purposes: Change orders for all construction and non-construction purchases, which were initially awarded by the CRA Board, will be approved as follows: (Based on cumulative change orders) Less than $5,000 requires CRA Director approval; $5,000 to $9,999 requires CRA Director and CRA Chairman or designee approval; $10,000 or more requires CRA Board approval. Change orders will only be presented to CRA Board for approval when Cumulative Change Orders for the awarded item have reached $10,000 or more. When presented to the CRA Board all cumulative changes that make up the cumulative change order amount of $10,000 or more will be presented as part of the approval. If after CRA Board approval additional change orders are required, the same process will be used for the next cumulative change orders. An original of the change order shall be remitted to the CRA Director attached to a purchase requisition requesting the change order. The CRA Director will make the necessary change(s) to the purchase order and return it to the Controller for the CRA records. Normal purchase orders over $500 will have a tolerance of 10 percent of the purchase order amount up to $50. The invoices for these purchase orders can be processed without preparing a change order. Invoices, which exceed the tolerance limit, will require the CRA Director to review and approve the discrepancy. The change order request shall justify the cause for variance. Professional Services Contracts are negotiated contracts entered into prior to services being rendered and, as such, change orders will require approval of the CRA Board. ]7 All change orders are to be reviewed and processed to change the purchase order amount. Change orders will be distributed to the holders of the original purchase order. If there are any questions as to the procedure for processing a particular change order contact should be made with the CRA Director CRA PURCHASING POLICY MANUAL REQUEST FOR PROPOSALS PURPOSE: When the CRA Director determines that the use of competitive sealed bidding is not practical or not advantageous to the CRA, a contract may be entered into through receipt of the competitive sealed proposals. POLICY: Request for Proposals. Proposals shall be solicited through a Request for Proposals (RFP). The RFP shall be developed by the CRA Staff with the approval of the CRA Director and review by the CRA Attorney. Requests will identify required specifications and determine the parameters for the solicitation of bids. Public Notice/Request to Advertise. Public notice of the RRP will be given in the same manner as provided for competitive sealed bidding. Notice will be provided in local media no later than eight (8) calendar days prior to the designated receiving date of the RFP. Receipt of Proposals. No proposal shall be opened until the time designated in the public notice of the RFP. A register of proposals in the form of a tabulation sheet shall be prepared containing the name of each offeror. Proposal Conditions and Specifications. Conditions and specifications tend to serve more as guidelines than strict standards. The object is to allow the vendor's own expertise to design a proposal which will fulfill the CRA's ultimate specified result. Conditions and specifications should not be so broad as to promote non specific proposals. By establishing boundaries within which to operate and guiding the vendor toward the direction of the CRA's goal, the RFP seeks to elicit the best talents in the market place to handle the task identified. Inquiries on RFP. All questions in regards to an RFP shall be addressed to the CRA Director or designated contact person. The CRA Director will coordinate the responses to the inquiry in the form of an addendum that alters or changes the end result of a RFP and forward copies to all known responders to the proposal. Evaluation Factors. The RFP shall state the relative importance of price, if appropriate, and other evaluation factors such as: quality, delivery and service, as well as past supplier performance and conformance to specification and/or quotation requirements. Only criteria disclosed in the RFP may be used to evaluate the items or services proposed. Discussion with Responsible Offerors and Revisions to Proposals. As provided in the RFP, discussions may be conducted with responsible offerors that submit proposals determined to have a reasonable possibility of being selected for award, for the purpose of clarification, to assure full understanding of, and conformance to, the solicitation requirements. Award. Award shall be made to the responsible/responsive offeror whose proposal is determined to be the most advantageous to or in the best interest of the CRA, taking into consideration the evaluation factors set forth in the request for proposal. The contract file shall contain the basis on which the award was made. 2O CRA PURSHASlNG POLICY MANUAL PROFESSIONAL SERVICES PURPOSE: To provide a policy that fully complies with the requirements of the Consultants Competitive Negotiation Act (CCNA), Section 287.055, Florida Statutes, when the combined amount for the services is $10,000 or more. DEFINITION: Professional services mean any services where the CRA is obtaining advice, instruction or specialized work from an individual specifically qualified in a particular area. This would include architectural, engineering and registered land surveying services. Professional services may include a report or written adviCe which may be lengthy; however, the main thrust of the service is not considered labor but the exercise of intellectual ability. The procurement of professional services does not lend itself to normal competitive bidding and pricing competition alone. These services may be procured by a Request for Letter of Interest, Request for Proposal or Request for Qualification and selected through competitive selection and negotiation. POLICY: The CRA requires a competitive bid process for professional services when the cost of the service exceeds: ]. $10,000 or more for planning or study activity. 2. $10,000 or more for basic construction costs. The processes to contract for professional services are: Public Announcement/Request to Advertise - At such time when professional services are deemed necessary by the CRA, the CRA Director shall provide and request a legal advertisement to be published in a newspaper of general circulation within Palm Beach County setting forth a general description of the project requiring professional services and providing instructions on how interested firms may apply for consideration by the CRA. In addition, a notification of the project will be sent to each certified firm which has expressed an interest in being notified, a mailing list created from the vendor file and a suggested list from the CRA Staff or Board. 2] Competitive Selection - There shall be a Competitive Selection Committee (CSC),which shall be appointed by the CRA Board and may be composed of the following representatives: A. Representative(s) of the CRA Board. B. Citizen appointed by the CRA Board based on their qualifications and experience in the area of discipline sought. C. Other representative(s) that may be deemed appropriate by the CRA Director or CRA Board. The responsibility of the CSC committee will be to: · Short-list the number of firms to a minimum of three firms. Hold discussions with all shod listed firms. Such discussion may encompass formal presentations by each firm. The requirements of presentations or discussion will be the same for each short-listed firm. · Rank the firms based on qualifications and discussions. After selection of the firm that will best serve the interest of the CRA, the selection committee will bring their recommendation before the CRA Board to authorize the priority of the firms for negotiation of a contract. Competitive Negotiation - The (CSC) committee or CRA Board Designee (s) will attempt to negotiate a contract with the highest ranked firm to perform the services at a compensation that the CSC determines to be fair and reasonable. If the CSC is unable to negotiate a satisfactory contract with the firm obtaining the highest ranking, negotiations with that firm shall be formally terminated. The CSC then shall undertake negotiations with the second ranked firm. If these negotiations also prove unsatisfactory, negotiations shall again be terminated and the CSC will negotiate, in turn, with each firm in accordance with their ranking by the committee, until an agreement is reached or the short list is exhausted. When Staff has reached an impasse in the negotiations, Staff will notify the CRA Board. The CRA Board may choose to have a CRA Board Member or designee try to negotiate a contract with the list of potential firms. When the short list is exhausted and all negotiations have failed a new solicitation for proposals must be initiated For any lump-sum or cost-plus-a-fixed-fee professional service contract over the threshold amount provided in Section 287.017 (5) (a), Florida 22 Statutes, for Category Four (currently $60,000) the CRA shall require the firm receiving the award to execute a truth-in-negotiation certificate stating that wage rates and other factual unit cost supporting the compensation are accurate, complete, and current at the time of contracting. Award of Contract - At the successful conclusion of negotiations, a contract award will be recommended to the CRA Board for approval. Less Than Three Firms - In the event less than three (3) firms express interest in a project or less than three (3) firms are deemed qualified by the CSC Committee, then the CRA Director shall make a determination as to whether to proceed with the lesser number of firms. If the decision is to readvertise and after subsequent advertisement, three (3) firms still cannot be qualified, then the CRA Director shall proceed hereunder with the firm most qualified. Prohibition Against Contingent Fees Each contract for professional services shall contain the prohibition against contingent fees required by and set forth in Section 287.055 (6) (a), Florida Statutes. 23 CRA PURCHASING POLICY MANUAL CONSTRUCTION CONTRACTS PURPOSE: Due to the complexity of construction projects and the cost involved these contracts warrant special conditions. POLICY: In general, contracts for construction of major CRA projects are obtained through the Formal (Sealed) Bid process. Construction projects under $10,000 in cost may be procured by written quotations. Sealed bids are .required for all construction projects over $10,000 in costs and the following special conditions will apply: Announcement of Bids. To assure the greatest degree of competition, all of the following shall be used to announce the bids: Newspaper Legal Ads. Legal ads are an excellent method of attracting interested bidders, while also dispelling any criticism of bids only going to favored contractors. For this reason, they are required to be posted in a newspaper of general circulation in Palm Beach County. Legal ads should briefly state the name of the project, location, nature of work required, contact person name and telephone number, bid receiving date and time, cost of plans and location where bid specifications may be obtained. The ads should be placed a minimum of eight (8) calendar days prior to the bid receiving date. Advertisements may also be listed in the Dodge Reports, and other construction journals. Mailing to Interested Contractors (Bidders List). The primary contacts for construction bids are those firms that have previously done work for the CRA or other governmental entities and have expressed a desire to bid. A list of these firms shall be assembled from the records of the CRA and other governmental entities. Additionally, the CRA Director and the CRA Board may contribute firms that are listed in various reference sources, including but not limited to: Thomas Register, Municipal Index, Yellow Pages, Contractor's Blue Book, Palm Beach County Minority Business Directory, etc or from personal experience. 24 Generally, only an "Invitation to Bid" letter, or a "Notice to Contractor" should be mailed to firms on the Contractors Bid list. Pre-Bid Conference. A pre-bid conference may be held for all construction projects. Attendance at this conference is not mandatory, but highly recommended for all bidders. Bid Opening. No bids will be accepted after the receiving date and time. However, the CRA reserves the right to consider any bids received late due to mishandling by the CRA. The CRA Director is in charge of the bid opening and shall fully record the various bids for the construction project. Anyone requesting to review bids will be requested to wait until all bids received are finally tabulated and a staff person is available to monitor the bid package review process. Bid Review and Award. Bid review is by the CRA approved selection committee and the CRA staff will make copies of the tabulation sheets and have all bids available for their review. In some cases, review of bids may be performed by a contracted Architectural/Engineering firm. The contract award should generally be made to the lowest most responsive/ responsible bidder meeting specifications. If this is not the case, a thorough explanation should accompany the formal evaluation. Bid award shall be made by the CRA Board. Formal Construction Contract (Agreement). Due to the complex nature and duration of construction projects, a formal construction contract is prepared and copies are issued to all parties. These contracts are prepared by either a hired Architectural/Engineering firm, or the CRA Attorney's Office. The formal construction contract is based on the bid document and plans. The contractor shall provide all required licensing, insurance, and bond documentation to the CRA along with the signed contracts. All contracts must be reviewed and approved by the CRA Attorney as to form and legality before the contract is signed. 25 CRA PURCHASING POLICY MANUAL PURCHASING/PETTY CASH PURPOSE: This policy will establish the procedures required for a petty cash fund in the amount of $500.00. POLICY: The CRA Staff has the authority to request petty cash for the petty cash fund to meet small incidental purchases for facilitating the transaction of CRA business such as: small purchases that must be made from vendors that do not offer the CRA credit, postage for special delivery, toll receipts, parking, etc. Petty cash requests will not be authorized for individual purchases that exceed $100.00. The Controller will be responsible for controlling the flow of cash in and out of the Petty Cash Fund, making sure proper receipts are obtained for each purchase, assuring that proper forms are obtained for each purchase, assuring the proper forms are filled out completely and authorizing signatures obtained. The Controller will also be responsible for reconciling the Fund as needed and applying for reimbursement. Procedures for a petty cash fund are as follows: Petty Cash Payments - When an employee requests reimbursement or receives an advance from petty cash, the Petty Cash Receipt must be used. This form provides for identification of: dollar amount of receipt, reason for purchase, expense code, signature of employee receiving petty cash and the signature of the Controller. Anytime a disbursement is made from petty cash it is required that this form be completed in full. Petty Cash Reimbursement - Petty cash funds should be reconciled on a weekly basis. Reimbursement request will be submitted by the Controller on a Form 121 with the description stating "Petty Cash Reimbursement". The account codes from the Petty Cash Receipts will be summarized on the Form 121. The Form 121, Petty Cash Receipts, and supporting invoices will be sent to the CRA Director for approval of the reimbursement of petty cash. Sales tax should not be paid. Discrepancies in Petty Cash - Any discrepancies in the petty cash fund maintained by the Controller should be brought to the immediate attention of the CRA Director. 26 CRA PURCHASING POLICY MANUAL PURCHASING CREDIT CARD PURPOSE: The CRA Purchasing Credit Card Program is designed to improve efficiency in processing Iow dollar value purchases from any vendor that accepts the Visa / MasterCard or American Express credit card. This program will allow the cardholder to purchase approved commodities and services directly from our vendors. Each purchasing credit card is issued to a named individual and the CRA's name is clearly shown on the card as well. The tax exempt number will be given to each card holder. The CRA Director will monitor the performance of the program. The purpose of these policies and procedures is to accomplish the following: To provide an efficient method of purchasing and paying for goods and services not exceeding $500 per purchase (total invoice). To replace manual hardcopy requisitions and purchase orders for Iow dollar value purchases. To ensure purchasing credit card purchases are in accordance with the CRA's policies and procedures. To ensure that the CRA bears no legal liability from the inappropriate use of the purchasing credit cards. 5. To provide for disciplinary action if the purchasing credit cards are misused. The policies and procedures provided herein are minimum standards for use. 27 ASSIGNMENT AND CONTROL OF THE PURCHASING CREDIT CARD CARDHOLDER USE ONLY: The purchasing credit card may be used only by the employee whose name is embossed on the card. The Cardholder is responsible and accountable for all transactions that occur on his/her card. o CRA PURCHASES ONLY: The purchasing credit card is to be used for CRA authorized purchases only. The purchasing credit card cannot be used for any personal use and any such use will require immediate reimbursement and will result 'in disciplinary action that may include dismissal and/or criminal cha~ges. DOLLAR LIMITATIONS: A purchasing credit card will have established limits for each Cardholder, a single purchase limit and a 30-day limit. The maximum limit for a single purchase shall be $250 and a total of $500 during any 30-day billing cycle. Bo A single purchase may be made of multiple items, but the total invoice cannot exceed $250. CHARGES FOR PURCHASES SHALL NOT BE SPLIT TO STAY WITHIN THE SINGLE PURCHASE LIMIT. PURCHASE LIMIT. Exceeding these limits will be considered abuse of the purchasing credit card program and can result in cancellation of card, disciplinary action, or both. PURCHASING CREDIT CARD SECURITY: A. STORAGE OF THE PURCHASING CREDIT CARD: Keep your purchasing credit card in an accessible but secure location. B. ACCOUNT NUMBER: Guard the purchasing credit card account number carefully! Do not post it at your desk or write it in your day planner. 28 C. SHARING OF CREDIT CARD: The only person entitled to use the purchasing credit card is the person whose name appears on the face of the card. Do not lend your purchasing credit card to another person for use. D. LOST OR STOLEN CARDS: If the purchasing credit card is lost or stolen, you must immediately notify the CRA Director and the Controller. E. RESPONSIBLE REPORTING The Cardholder will be responsible for reporting all information necessary to minimize the liability to the CRA for a lost or stolen card. MISSING DOCUMENTATION: If for some reason the Cardholder does not have documentation to support any transaction on the monthly statement, the Cardholder will be held responsible to pay for the charges. Continued incidents of missing documentation may result in the cancellation of the employee's purchasing credit card privileges. PAYMENT AND INVOICE PROCEDURES: The purchasing credit card companies will mail all individual and consolidated billing statements to the CRA. The individual and consolidated billing statement will list all transactions processed during the billing cycle. The Controller must review the individual and consolidated statement. Charge slips/receipts for all items listed on the statement shall be attached to the monthly statement. ATTACHMENT II CRA PURCHASING CARD PROGRAM EMPLOYEE AGREEMENT I, ,(name of employee), - - (employee social security number), hereby request a Purchasing Credit Card ("Card"). As a Cardholder, I agree to comply with the following terms and conditions regarding my use of the Card. I understand that I am being entrusted with a valuable purchasing tool and will be making financial commitments on behalf of the CRA and will strive to obtain the best value for the CRA by using "preferred suppliers". I understand that the CRA is liable to credit card companies for all charges made on the Card. I agree to use this Card for approved purchases only and agree not to charge personal purchases. I understand that the Card may not be utilized for cash advances. I will not permit another individual to utilize the Card issued to me. I understand that the CRA will review the use of this Card and take appropriate action on any discrepancies. I acknowledge that the Card may only be used for purchases that total less than Two Hundred Fifty ($250.00) Dollars per transaction. It is my responsibility to ensure that the supplier has the CRA's tax- exempt number. I agree to return the Card immediately upon request or upon termination of employment (including retirement). I understand that the CRA or Purchase Credit Card companies may suspend or cancel the Card at any time for any reason whatsoever and I shall return the Card immediately upon notification or cancellation. I understand, as a Cardholder, it will be my responsibility to assist in the reconciliation of my monthly statement. This includes: providing supporting charge slips/receipts listing the reason for purchase or job it pertains to for all transactions appearing on the statement. I agree with all of the terms and conditions of the Purchasing Manual on the assignment and control of the Purchasing Credit Card. 30 CRA Purchasing Card Program Employee Agreement Page 2 of 2 If the Card is lost or stolen, I agree to immediately notify the CRA Director and the Controller (1-561-737-3256) of the loss, verbally and in writing. Employee Signature and Date Witness Signature and Date Print Name - Employee Print Name - Witness Controller Date FOR OFFICIAL USE ONLY Issuance Date 31 ZX. - CTrY MANAGER'S REPORT CITY OF BOYNTON BEAC ITEM D AGENDA ITEM REQUEST FORM Requested City Commission Date FinaJ Form Must be Turned Requested City Commission Meeting, Dates in to City Clerk's Office Meeting Dates [] April 1, 2003 March 17, 2003 (Noon.)~ [] June 3, 2003 [] April 15, 2003 March 31, 2003 (Noon) [] June 17, 2003 [] May 6, 2003 April 14, 2003 (Noon) [] July 1, 2003 [] May 20, 2003 May 5, 2003 (Noon) [] July 15, 2003 Date Final Form Must be Turned in to City Clerk's Office May 19, 2003 (Noon) June 2, 2003 (Noon) ~ ,~. ~-~-~ June 16, 2003 (Noon) ~!' '. . -, 1 June 30, 2003(Noon) [] Administrative [] Legal NATURE OF [] Announcement [] New Business AGENDA ITEM [] City Manager's Report [] Presentation [] Consent Agenda [] Public Hearing [] Code Compliance/Legal Settlements [] Unfinished Business RECOMMENDATION: Discussion of Ordinance 01-30 Fee-in lieu Parking Ordinance for CBD Area an referral to CRA for possible amendment to Land Development Regulations. EXPLANATION: At the recent City Commission/CRA Workshop, the topic of the "fee in lieu" ordinance was discussed briefly. The consensus of the discussion was for staffto bring this item back to the City Commission for re-review. Staff is recommending that the fee structure in the ordinance be modified based on the assumption with the new development profile that additional parking spaces are more likely to be in a parking structure than an open lot: Fee until October 1, 2003: Fee until October 1, 2004: Fee until October 1, 2005: Fee until October l, 2006: $ 7,500/space $10,000/space $14,000/space $15,000/space The CRA may, as part of a financial incentive program for a developer, underwrite all or part of these fees. PROGRAM IMPACT: The ordinance adopted by the Commission differed from the staff recommendation in 2001. The current fee is $1,000 per space until September 30, 2003. After that date, the fee would rise to $2,000/space and increments of $1,000 a year to a cap of $7,000/space after October 1, 2008. The staff recommendation in 2001 was as follows: Year One $ 0; Year Two $3,000 Year Three $5,000 Year Four $7,000 Year Five $10,000 Year Six + $10,000 FISCAL IMPACT: The current construction cost &surface parking is about $2,500/space. In a surface parking lot with lighting, the construction cost is about $3,000/space. The construction cost ora parking space in a parking deck is about $12,000-$15,000. These are estimates exclusive of land cost and annual O&M costs. Annual O&M costs for a surface space is about $100/space that includes pavement maintenance, landscaping irrigation and lighting costs. Annual O&M costs for a space in a parking deck is about $50/space. With a manned controlled access system in place, the annual O&M costs are about $ ! 00/space in a parking deck. The revenues from the parking system serve to offset the annual O&M costs and should provide a repair and replacement reserve. Please note that these estimates of cost are based on advice of the City's engineering department and personal experience with surface parking lots. A parking consultant should be engaged to verify these costs. S:\BULLETIN\FORMSLAGENDA ITEM REQUEST FORM.DOC CITY OF BOYNTON BEACH AGENDA ITEM REQUEST FORM ALTERNATIVES: 1. Leave the fee structure as contained in the currem ordinance. 2. Leave the fee structure as contained in the current ordinance, engage services ora parking consultant to review CBD parking program in the CBD and surrounding area. This project is not budgeted, however and is estimated to cost $20,000. 3. Refer the ordinance changes as proposed to the CRA, engage services ora parking consultant to review CBD parking program in the CBD and surrounding area. This project is not budgeted, however and is estimated to cost $20,000. Attachments to Agenda Item include: 1. Original Staff report dated June 11, 2001 2. Ordinance 01-30 Adopted July 17, 2001 3. Minutes of June 19, 2001 City Commission meeting (review of CRA Recommendation of Ordinance) 4. Minutes of July 2, 2001 City Commission Meeting (first read of Ordinance) 5. Map of CBDarea. Department Head's Signature City Manager's Signa[ure Department Name City Attorney / Finance / Human Resources S2BULLETINLFORMS~AGENDA ITEM REQUEST FORM.DOC MEMORANDUM To: From: Date: Re: Kurt Bressner, City Manager Quintus Greene, Development Director June 11, 2001 Fee in lieu Parking Ordinance Please be advised that at its workshop on Saturday June 9, 2001 the Board of the Community Redevelopment Agency reviewed the proposed Fee in Lieu Parking Ordinance. Pursuant to this review it was the consensus of the board that the rate structure and its application needed to be formally discussed at its meeting on Tuesday, June 12. Among the areas the board generally agreed to needed further exploration was whether or not the fee in lieu principle should apply to all parking spaces or simply to a portion of the spaces a particular use was otherwise required to provide. In addition the board members were in general agreement that the rate structure in the proposed ordinance needed to be revised. This revised fee structure would provide for $ 0 fee the first year, $3,000 the second year, $5,000 the third year, $7,000 the fourth year, and top out at $10,000 in the fifth year. ouuI CZ so. SO AN ORDINANCE OF ~ CITY COMMISSION OF CITY OF BOYNTON BEACH, FLORIDA AMENDING THE LAND DEVELOPMENT RF~ULATIONS, CHAPTER 2. "ZONING", SECTION 6. E.7~g, "P~YMENT IN LIEU OF PARKING" AND .SECTION 11; I. ~LOCATION OF OFF~STRE. ET .PARKING SPACES", TO A.ME~ TI~: "PAYMENT'IN LIEU OI~-.P~G~ 'PROGRAM FOR ~ CE~ BUSINESs.... DISTRICT ZONING DISTRICT: .AND TO ALLOW. A "PAYMENT IN LIEU 'OF P~G" P 'ROG~ :FOR:~ AVENUE.E~I~...G W~ST FROM .TILE C]~~ BUSINESS insTruCT TO s ,Ac s nO VAlm; PROVm NG ] OR Co !c s. COn.AT[ON A~ EFA~.~3TIVE": D~TE. WHEREAS, the City's Land Development Regulations establish zoning districts within the City and among other things, regulations designed to lessen congestion in the streets and facilitate the adequate provision of parking spaces; and WHF. REAS, Chapter 2. "Zoning", Section 6.E.7.g. provides for the establishment of a payment in lien of parking option for developments within the Central Business District and the city now desires to establish a formula for determining a specfrfic fee when a property owner csnnot effectively, ~fficienfly, or economically provide for all onsite parking requirements; and WHEREAS, the City Attorney has recommi:xlded adoption of a payment in lien of ~arldng payment schedule by Ordinance rather than by Resolution; and WI:IRREAS, it is anticipated that future development within downtowIl Boynton will increase the demand upon an already limited supply of on-and off-street public resources which serves the downtown area; and WHEREAS, the City Commission heretofore authorized a Shared Parking Study for i1¢ downtowll, which contained recommendations for the revision to applicable paricing requirements including the establishment of a payment in lieu ofparidng option; and WRF~REAS, compliance with the City of Boynton Beach parking space and lot regulali°ns may not be feasible for older properties and therefore discourage desirable development and redevelopment of underutilized properties in the downtown area; NOW TI~I.~FO~, BE IT'ORDAINED BY ~ CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The foregoing whereas, clauses are true and correct and are now and confirmed by the City Commission. Chapter 2. "Zoning" of the Land Development RegulatiOns, subsection Section 2.. 6. E.7.g. (1) is:hereby amended to read'as follows: (1) When the community redevelopment agency finds that the property owner seeking an expansion cannot effectively, efficiently, or economically provide for t~c ........... ~-~:~,~-~ ^- ~:*~ parking required for the expansion, the community redevelopment agency niay recommend to the City Commissio~ a payment ill lieu of' parking. The payment shall be based on a formula ~:~ ~"' '~'~ ~:~' ~'~--:":~ .... ~ ~*~ ~"' · ~ . in ~]~bSectiOn 11. I. {4) of this Chapter. In approving or disapproving an? pagment in lieu of the City Commission shall use the ssrne criteria used by the Community Redevelopment agency as ~tated herein above. 2 Section 3. Chapter 2. "Zoning" of the Land Development Regulations, subsection 11. H. 16. is hereby amended to read as follows: 16. Except as provided for in Subsection I. (4) below, there shall be provided, atthe time of erection of any structure Section 4. Chapter 2. "Zoning" of the. Land Development Regulations, Section 11. I. is amended to create a new subsection (4) to read as follows: (4) The pagm~t in lieu of parking option is applicable within the Central Business Dis~ict 01er~inat~er CBD) or'subsequent zoning distriCts established to s~plemeut or r~-place the C]tD, an~d propefdes, and property assembled with properties as one site, that fro_nt on that se~.qment of Ocean Avenue exteading west frOm the CBD to Seacrest Boulevard. A. Within this area at th__e~ time of any building construction~ ~xpanslon or modificafi_'on that creat~ addjti_'onal floor area, or except where otherwise allowed in sn~secfion C. off'Sffeet parking spaces .qball be proVided as required by Chapter 2. "Zonln~' Section 11. H. and Section. 6. E. ~ B. The area me~nred for purposes of thi~ subsection shall only . include the floor area designed primarily for public use, and excluded floor. area for bathrooms, service and food pr~aration s~ outdoor waiting areas, space limited to storage, and are_.~s uninhabitable due to building code requimm_ ents or other limitations, C, Minor building expansiQns eqnal to or less than two Parking spaces shall b~ excluded from the requirements described in subsection A,. above, and for minor improvements that exceed th__e two-space limit but less than 5% of th__e_ total area of existing improv_~n__ents, only the increase in bnj!rling area .qhall be subject to the p~ridng space requirements of subsection A. above and subsection E. below. D. Existing parking spaces shall not be eliminated if elimination would result in fewer spaces beLng provid~ for the:existing or new floor area than required pursuant to subsection A. above. E, The paring req..~_~__ent set forth in. this subsection may be s_a_,_'sfied in whole or part by the Payment of a nonrefundab!e. p .m-~ing improvement fee in lieu of the provision of' all,. or a. portion of the required Off-street paricing spaces. Parking improvement' fees .qhall be assessed as follows: $0 per space $1,000 per ~e $2,000 per space '$3,000 ~er sp~¢ $4,000 per space $5,000 per space $6,000 per space $7,000 per space Up to September 30, 2002 between October 1,2002 and September 30, 2003 between October 1, 2003 and September 30, 2004 between October 1, 2004 and September 30, 2005, betweext October 1, 2005 and September.30, 2006 · between October 1, 2006 and September 30, 2007 between October 1, 2007 and September 30, 2008 after October 1, 2008 Tho parking irt,m, rovement fee shall bo _~e and payable in full at the time that the first building permit is issued for the construction,, expansion, or modi6ca._'on that cre~_tes the need for parking spaces or for additional parking spaces, an__d_ in no event lat~ than the t/me a certificate of occupancy or occupational license is issued for the building or use subject to this Section. parking improvement fees .qhall be paid into tho City of Boynton Beach parking Trust Fund, and are mbject to use by the City for parking related improvements in the ~eographic area tO which subsection (4/_a!~_ lies. Section 5. All ordinances and resolutiOns of the City of Boynton Beach in conflict with any provisions of this ordinance are hereby repealed. Section 6. Should any section or provision of this Ordinance or any portion thereof be declared by a court of competent jurisdiction to be invalid, such decision shall not 'he remainder of this Ordinance. 4 Section 7. Section 8. Authodty is hereby given to codify this Ordinance This Ordinance shall become effective immediately. READING this I~ ' dayofJune, 2001. SECOND, FnqAL READING AND PASSAGE this day of July, 2001. Clerk Co__..~..°mmlssl°ner m~$sion~ :\1990L000182.BB~ORD~ee in lb~,~,~,~,~,~,~,~,~-u.doo 5 Section 7. Section 8. Authority is hereby given to codify this Ordinance This Ordinance shall become effective immediately. ' READING this Iq , dayofJune, 2001. FINAL READING AND PASSAGE this d~y of July, 2001. _Com~mssloner Clerk :\1990k900182.BB~OP.D~ in ii~u.do~ 5 D. Existing parking spaces .~hall not be eliminated if elimination would result in fewer spaces being provided for the:existin~ or new floor area_ tban required pursuant to subsection A. above. The pnrldng requiremevt set forth in. thi.~ subsection may be satisfied in Whole or part by the payrnmt of a nonrefimdable parking improvement fee in lieu of the provision of all or a. portion of the required Off-street parking spaces. Parking improvement: fees shnll be assessed as follows: $0 per space $1.000 ~ space $2,000 per space $3.000 per space $4,000 per space $5,000 per $6,000 per space $7,000 per space Up to September 30, 2002 between Oetob~ 1,2002 and September 30, 2003 betw~a October 1, 2003 and September 30, 2004 between October 1, 2004 and Sepmmber 30, 200:~ between October 1, 2005 _and September.30, 200~. between October 1, 2006'and September 30. 200/ between October 1, 2007 and September 30, 2008. after October 1, 2008 The parking im~vement fee shall be ch~e and payable in full at the time that the ~st building permit is issued for the construction,, .expansion, or modi~cafion'that crew_res the need for parking spaces or for adtlifional parking spaces, and in no event lat~ than the time a certificate of occupancy or occupational license is issued for t_he building or use subject to this Section. parking i~.nwvement fees shall be paid into the City of Boynton Beach pa~kk, g Trust Fund, :md are subi_~t_, to use by the City for oarkin~ related ~?tovem~ts in the gcogr~p_~hic area to which subsection (4) apvlies. Section 5. All ordinances and resolutiOns of the City of Boynton Beach in conflict with any provisions of this ordinance are hereby repealed. Section 6. Should any section or prOvision of this Ordinance or any portion thereof be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the remainder of this Ordinance. Section 3. Chapter 2. "Zoning" of the Land Development Regulations, subsection 11. H. 16. is hereby amended to read as follows: 16. Except as provided for in Subsection I. (4) below, there shall be provided, atthe time of erection of any structure .... Section 4. Chapter 2. "Zoning" of the. Land Development Regulations, Section 11. I. is amended to create a new subsection (4) to read as follows: (4) The payment in lieu of parldng option is applicable within the Central Business District (h_ereinaf~er CBD) or' subseq~_ent zoning distriCts established to supplem~t or replace the CBD, an_d pwperties, and pwperiy assembled with properties as one site, that front on that se~.a~ent of Ocean Avenue extending west. from the CBD to Seaerest Boulevard. A. Within thi~ area at the time of any bu/lding construction~ expan.~ion or m~dific~__ti_on that cre~at_~ _additional floor are~ or except where otherwise allowed in subsection C. off'street parldng spaces shall be proVided as required by Chapter 2. "Zonln~' Section 11. H. and Section. 6. E.. B. The area measured for purposes of this subsection shall only . include the floor area designed primarily for public use~ and excluded floor area for bathrooms~ service and food preparation staff~ outdoor waiting areas, space limited to storage~ and are_.~s uninhabitable due to building code requirements or other limitations. C, Minor building ~xpan.~i0ns equal to or less than two Parldng spaces .~hall be exclud_ed_ from the requirements described in subsec~on A. above, and for minor im?rovements that exceed the two-space limit but less than 5% of the total area of existing irrrprovements¶ only the increase in building area .~hall be subject to the_ parking space requirements of subsection A. above and subsection E. below. WHEREAS' compliance with the City of Boynton Beach parking space and lot regulatiOns may not. be feasible for older properties and therefore discourage desirable development and redevelopment of underutilized properties in the downtown area; NOW TI~FO~, BE IT'ORDAINED BY THE CITY COMMISSION OF THE CITY OF BORON BEACH, FLORIDA, THAT: ~ The foregoing whereas..clauses ratified' and confirmed by the City Commission. are mxe and correct and are now Chapter 2. "Zoning" of the Land Development Regulations, subsection Section 2. 6, E.7.g. (1) is'hereby amended to read as follows: (1) When the commuuity redevelopment agency finds that the property owner seeking an expansion canuot effectively, efficiently, or economically provide for th~...--,...~.....~'~'~:""-~ ..--~- ~-~-~"' parking required for the expansion, the community redevelopment agency may r~commend to the City Commissiollaoo~ a payment in lieu of parking. The shall be based on a formula~,.-.-.~....~+n~'l:~"~ ....... in subsec, ti°n 11. L (4) of this Chapter. In approvln~ or disapproving any payment in lieu o_f shall use the .~mme criteria used by the Community .~edeVelopmeut agency as sltated herein above. 2 OP. OINASCE NO. SO AN ORDINANCE OF ~ CITY COMMISSION OF Tl~ CITY OF BOYNTON BEACH, FLORIDA AMENDING THE LAND DEVELOPMENT REGULATIONS, CHAPTER 2. "ZONING", SECTION 6. E.7.g, "P~YMENT /N LIEU OF PARKING" AND SECTION 1~: I. "LOCATION OF OFF~.STREET PARKING SPACES"; TO. AMEND Wi;Hr~~ ~PAYMENT'IN LIEU OI~-.PAIZKIN.'G~ PRO~ FOR ~ CE~ BUSINES~ S..~ DISTRICT ZONING DISTRI. CT: .AI~ TO ALLow.~I A "PAYMENT IN LIEU 'OF PARKING" PROG~FOR':~ AVENIJE.EXTEND~G WEST FROM~ TILE. CE~ BUSINESS ' DISTRICT TO SEACREST~. I~O~VAI~D; PR0~gI~ING FOR co !ca s, s mrrY, COV AaaOS AN Elr~E.~i DATE. WHEREAS, the. City's Land Development Regulations establi.sh zoning di,striets within the City and among other things, regulations designed to lessen congestion in the streets and facilitate the adequate provision ofpaflciug spaces; and WHF~REAS, Chapter 2. "Zoning", Section 6.E.7.g. provides for the establi.~hment of a payment in lien. of parking option for developments within the Central Business District and the city now desires to establish a formula for determining a specific fee when a property owner cannot effectively, efficiently, or economically provide for all onsite parldng requirements; and WHEREAS, the City Attorney has recommended adoption of a payment in lieu of parking payment schedule by Ordinance rather than by Resolution; and WHF~REAS, it is anticipated that future development within downtown Boynton Beach will increase the demand upon an already limited supply of on-and off-street public parking resources which serves the downtown area; and WI~lr~REAS, the City Commission heretofore authorized a Shared Parking Study for the downtown, which contained recommendations for the revision to applicable partcing requirements including the establishment of a payment in lieu of parking option; and MEMORANDUM To: From: Date: Re: Kurt Bressner, City Manager Quintus Greene, Development Director June 11, 2001 Fee in lieu Parking Ordinance Please be advised that at its workshop on Saturday June 9, 2001 the Board of the Community Redevelopment Agency reviewed the proposed Fee in Lieu Parking Ordinance. Pursuant to this review it was the consensus of the board that the rate structure and its application needed to be formally discussed at its meeting on Tuesday, June 12. Among the areas the board generally agreed to needed further exploration was whether or not the fee in lieu principle should apply to all parking spaces or simply to a portion of the spaces a particular use was otherwise required to provide. In addition the board members were in general agreement that the rate structure in the proposed ordinance needed to be revised. This revised fee structure would provide for $ 0 fee the first year, $3,000 the second year, $5,000 the third year, $7,000 the fourth year, and top out at $10,000 in the fifth year. CITY OF BOYNTON BEACH AGENDA ITEM REQUEST FORM ALTERNATIVES: 1. Leave the fee structure as contained in the current ordinance. 2. Leave the fee structure as contained in the current ordinance, engage services ora parking consultant to review CBD parking program in the CBD and surrounding area. This project is not budgeted, however and is estimated to cost $20,000. 3. Refer the ordinance changes as proposed to the CRA, engage services of a parking consultant to review CBD parking program in the CBD and surrounding area. This project is not budgeted, however and is estimated to cost $20,000. Attachments to Agenda Item include: 1. Original Staff report dated June 11,2001 2. Ordinance 01-30 Adopted July 17, 2001 3. Minutes of June 19, 2001 City Commission meeting (review of CRA Recommendation of Ordinance) ' 4. Minutes of July 2, 2001 City Commission Meeting (lb'st read of Ordinance) 5. Map ofCBD area. Department Head's Signature Department Name City Attorney / Finance / Human Resources S:~BULLETIN~FORMS~AGENDA ITEM REQUEST FORM.DOC [X. - CITY blANAGER'S REPORT CITY OF BOYNTON BEAC rrE 4 D AGENDA ITEM REQUEST FORM Requested City Commission Date Final Form Must be Turned Requested City Commission Date Final Form Must be Turned Meeting; Dates in to City Clerk's Office Meeting Dates in to City Clerk's Office [] April l, 2003 March 17, 2003 (Noon.) [] June 3, 2003 May 19, 2003 (Noon) [] April 15, 2003 March 31, 2003 (Noon) [] June 17, 2003 June 2, 2003 (Noon) -~ --~---~ [] May6,2003 April 14, 2003 (Noon) [] July 1,2003 June 16, 2003 (Noon) ~( '~ . [] May 20, 2003 May 5, 2003 (Noon) [] July 15, 2003 June 30, 2003 (Noon) [] Administrative [] Legal NATURE OF [] Announcement [] New Business AGENDA ITEM [] City Manager's Report [] Presentation [] Consent Agenda [] Public Hearing [] Code Compliance/Legal Settlements [] Unfinished Business RECOMMENDATION: Discussion of Ordinance 01-30 Fee-in lieu Parking Ordinance for CBD Area an referral to CRA for possible amendment to Land Development Regulations. EXPLANATION: At the recent City Commission/CRA Workshop, the topic of the "fee in lieu" ordinance was discussed briefly. The consensus of the discussion was for staffto bring this item back to the City Commission for re-review. Staff is recommending that the fee structure in the ordinance be modified based on the assumption with the new development profile that additional parking spaces are more likely to be in a parking structure than an open lot: Fee until October l, 2003: Fee until October 1, 2004: Fee until October I, 2005: Fee until October i, 2006: $ 7,500/space $10,000/space $14,000/space $15,000/space The CRA may, as part of a financial incentive program for a developer, underwrite all or part of these fees. PROGRAM IMPACT: The ordinance adopted by the Commission differed from the staff recommendation in 2001. The current fee is $1,000 per space until September 30, 2003. After that date, the fee would rise to $2,000/space and increments of $1,000 a year to a cap of $7,000/space after October l, 2008. The staff recommendation in 2001 was as follows: Year One $ 0; Year Two $3,000 Year Three $5,000 Year Four $7,000 Year Five $10,000 Year Six + $10,000 FISCAL IMPACT: The current construction cost of surface parking is about $2,500/space. In a surface parking lot with lighting, the construction cost is about $3,000/space. The construction cost of a parking space in a parking deck is about $12,000-$15,000. These are estimates exclusive of land cost and annual O&M costs. Annual O&M costs for a surface space is about $100/space that includes pavement maintenance, landscaping irrigation and lighting costs. Annual O&M costs for a space in a parking deck is about $50/space. With a manned controlled access system in place, the annual O&M costs are about $100/space in a parking deck. The revenues fi'om the parking system serve to offset the annual O&M costs and should provide a repair and replacement reserve. Please note that these estimates of cost are based on advice of the City's engineering department and personal experience with surface parking lots. A parking consultant should be engaged to verify these costs. S:\BULLETIN\FORMSXAGENDA ITEM REQUEST FORMDOC MEETING MINUTES REGULAR CITY COMMISSION BOYNTON BEACH, FLORIDA JUNE 19, 2001 Motion Commissioner Ferguson moved to approve Proposed Ordinance 01-29. Commissioner Fisher seconded the. motion. City Clerk Prainito polled the vote. The vote'was 5-0. 4. Proposed Ordinance No. 01-30 Re: Initiating Fee-In-Lieu- Of Parking Regulations Attomey Cherof read Proposed Ordinance No. 01-30 by title only. Commissioner Ferguson asked to amend the Ordinance, Section 4.E, which had a timetable. He wanted the fee to be "0" up through September 30, 2002 and have each level changed to September 30 since that was the .end of the fiscal year, making it easier at budget time. Vice Mayor Weiland thought fee-in-lieu was a good'idea and pointed out that several businesses in the Ocean Avenue area could benefit from such a program. Motion Vice Mayor Weiland made a motion to table the issue while the CRA looked at it before sending it to the commission. The motion failed for lack of a second. Quintus Greene, Development Director, said that the CRA had considered this topic at length in its recent workshop and at its regular formal meeting on June 12. commissioner Ferguson attended the meeting and said there had been varying opinions on the dollar amounts and lengthof time for the matrix. Commissioner Fisher was in favor of extending it to September but thought that the '0' should be extended to September 30, 2003 to serve as a greater incentive for development of the area. Mayor Broening was in favor of an interval of time and not specific dates and asked for the reason behind the dates. Mr. Greene said that developers did not like uncertainty and the earlier you got in the less you would pay. Commissioner Fisher wanted to increase the amounts from the third ~ .e.~..r onward to serve as additional encouragement to' act earlY. He was in favor of starting the 3. year with $2,000. Vice Mayor Weiland stated that the City already had a 10t of incentives, including the recant 50% reduction in parking requirements. He believed that the fee-in-lieu should be the last option after exhausting the other altematives. He also believed that further discussion was warranted and that the item should be tabled so the commissioners couid study the proposal. Commissioner McCray was at the CRA meeting and thoughtthey had done an excellent job of analyzing the. issue; he was. in ~favor of the Ordinance to include the fiscal year change. Motion commissioner Ferguson moved to approve Proposed Ordinance No. 01-30, changing Section 4..E to reflect September 30, 2002 for the first grid and keep the dollars the same. Each line on the grid would reflect the date change of September 30 to be in line with the fiscal year. Commissioner McCray seconded the motion, 18 MEETING MINUTES REGULAR CITY COMMISSION BOYNTON BEACH, FLORIDA JUNE 19, 2001 Commissioner FiSher repeated his request to extend the '0' for two years. Mr. Bressner said -it could be evaluated in six months and changed if the Commission deemed it necessary. City Clerk Prainit° polled the vote. The vote wes 4-1, Vice Mayor We#and dissenting. 6. Proposed Ordinance No. 01.31 Re: Economic Incentives - for community Redevelopment Ama Attomey Cherof read Proposed Ordinance No. 01-31 by title only. Motion commissioner Fisher moved to approved Proposed Ordinance No. 01-31. commissioner McCray seconded*the motion. City Clerk Prainito polled the vote. The vote was 5-0. 7~ Proposed Ordinance No. 01.32 Re: for Development in PID Economic Incentives Attomey Cherof read Proposed Ordinance No. 01-32 by title only. Motion Commissioner Ferguson moved to approve Proposed Ordinance No. 01-32. Commissioner Fisher seconded the motion. Mr. Bressner noted that Quantum Park had requested an opportunity to review this Ordinance in more detail but that the Commissioners could opt to go ahead with the motion and discuss any amendments before second reading. City Clerk Prainito polled the vote. The vote was 5-0. XlI. None XlII. None Resolutions: None D. Other:. None UNFINISHED BUSINESS: OTHER: A. Informational Items by members of the City Commission 19 HeeUng Hinutes Regular CILy CommissiOn Bovnton Beach, Florida. July3, 2001- Vice Mayor Weiland stated that he will vote "nay" on this, hoping to be on the prevailing side because he wants to have the Qb/election in November but. prefers to have the Commission mrms shortened six months rather than extended six'months, If this item is denied tonight; he will ask that it be put on a future agenda, and have the terms shortened six months rather than extended. Qb/Clerk Prainito polled:the Commission. The moUon failed 2 to 3 with Mayor Broening, Vice Mayor Weitand and commissioner Rsher dissenUng. e Propo~ad Ordinance No.'01-28 Re: Approving revisions ~o the Cross-Connection control· and Backflow' Prevention ordinance, modifying the types of baddlow preventiOn units that am acceptable in certain .drcumstance~. and requiring increased baddlOw protection in areas served by wastewater reuse systems ' Qb/Attorney Chemf read proposed Ordinance No; 01-28 by title only. There was..no one present who wished to speak on this item. Commissioner Ferguson moved to approve Proposed Ordinance No. 01-28. seconded by Commissioner McCray. Ob/Clerk Prainito polled the Commission. unanimous. Motion was The vote was 3. Proposed Ordinance No. 01-29 Re: public rights-of-way for communicaUons fadlrdes Ob/AttOmey Chemf read' Proposed Ordinance No. 01-29 by title only. Them was no'one present who wished to speak on this item. Regulating the use of CommisSloner Fergusoh moved tn approve Ordinance No. 01-29, vice Mayor Weiland seconded the motion. 'city ?erk Prainito polled the Commission. The vote was unanimous. · =~::~Ordinance NO, 01-30 ' Re: ~iflating- Fee-In-Ueu- Ob/Attorney Chemf read p. mposed Ordinance No, 01-30 by Otie only. vice Mayor Weiland stated that he is in' favor of Initiating a fee in lieu of parking regulations. He said that this. was bmuglit, to the Communib/Redevelopment Agency (CRA) for their review, not for their decision or adVice., vice: Mayor Weiland would like to review this ordinance further and postpone this for one month. HeeUng Hinutes Regular City Commission Bovnton Beach, florida July 3. 20Ol CommissiOner Ferguson would' like to have the CRA review the ordinance and get their recommendations but he thinks this can be amended later and thought the Commission could vote for this ordinance tonight. Bob Ensler agreed with Vice Mayor Weiland. He agrees with the ordinance but disagrees with the process. The CRA should have had' more derision on this ordinance. Quintus Greene,. CRA DireCtOr, stated that this ordinance was brought to the CRA on two different occasions - at the CRA Workshop on Saturday preceding, the CRA meeting and at the CRA meeUng the following Tuesday, ~ There was considerable discussion on this item. Vice Mayor Weiland said he spoke to CRA. members and they did not. think they had any input. Vice Mayor Weiland made a motion to table this item to the first meeUng in 'August in order to give the CRA time to look into this and advise the Commission of different ways to implement this plan. Motion died for lack of a second. Mayor Broening said he read the minutes of both CRA meetings and got no indication that them was a lack of due process. Qb/Manager Bressner said. the concept has been embraced by the CRA and the only question was the period of Implementation. Mr. Greene stated that the implementation and amounts charged, were the only items questioned. The concept was approved by the CRA. Vice Mayor Weiland said this item needs more diSCUssion on numbers and the time frame. Mayor Broening reminded the Commission that at the last Qb/Commission meeting, they had reached a consensus on this and he was in favor of moving forward. Commissioner Ferguson moved to approve Ordinance No. 01-30. Commissioner Fisher seconded the motion. Qty Clerk Prainito polled the commission. The vote was unanimous. 5. Proposed Ordinance No. 01-31 Re: Economic zncentive for CRA Oty Attomey Chemf mad Pml~osed Ordinance No. 01-31 by title only. There was no one present who wished to speak on this item. ~oUon, Commissioner. Rsher' moved to approve Ordinance No. 01-31. Commissioner Ferguson seconded the motion. Ob/Clerk Prainito polled the Commission. The vote was unanimous. 15 MEMO To: From: Re: Date: CRA Board Douglas Hutchinson Payment in Lieu of Parking Program Recommendations for City Commission May 2, 2003 As per the City/CRA Workshop conversation relating to the "Payment in Lieu of Parking Program" for the CBD, I would propose that the program be re-visited in light of the current development climate in the CBD. Several aspects come to mind. I understand that the program was developed as an incentive to help projects, in the CBD with parking issues. Currently, the program is open ended, does not reflect true costs and will not reflect true costs for over ten years, the program has been and is open to abuse by developers. CRA is currently working on single 600 car public parking facility in the CBD; however, if more spaces are required another site will be needed. The concern is that there has been no formula put to the public aspect of downtown. Buildings and projects have formulas for parking based on use and square footages. While this is viable to figure project impacts, it falls well short of the needs for a destination downtown. This has been demonstrated in several other downtowns. There is tremendous loading of parking in the downtown area which exceeds the building or project parking requirement due to the use of public areas, events peaking (including general entertainment in the area), site seeing, etc. Therefore, payment in lieu of parking becomes problematic if the public parking planned is consumed by developer short falls. I would ask that the program be reconsidered as soon as possible for adjustment of several aspects. First is to leave it "as is" for very small projects (site sizing from 10,000 to 43,560 sq. ft.). These still need support and encouragement to become a reality. Second is to limit the use per project; i.e., a maximum of 50 spaces per project. The use could be tied to a sliding scale for payment into the parking fund. This would discourage large scale usage of the program, but still leave opportunity for use by projects in critical need. Third is to change the lowest level of payment to better reflect the true cost to the public for the development of these spaces. This would be in the realm of $8,000 for surface and $15,000 for parking garage. The price would then rise from these "base fees" as the project usage percentage increases. These thresholds would be in the range of 0 to 5% at base fee, 5.1% to 10% at 110%, 10.1% to 20% at 150%, and above 20.1% at 200% the "base fee" cost. These are examples only and are open to discussion. We have already seen entire floors removed from parking decks due to the fact that it is cheaper to pay the fees rather than incorporate the required project spaces. Actually, there should be an incentive or reimbursement for developers to generate additional 1728 spaces in their projects for public use. This would save the tax payers money and place more of the responsibility of parking in the private sector's hands. If the parking ownership is held by the private sector for public use, we can offset certain operations/costs by contract with the developers, (i.e. maintenance, fee or free parking, security, etc.) for the public's interest. 1729 ORDINANCE 01- $1 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA, AMENDING ORDINANCE 96-46, WHICH PROVIDES FOR ECONOMIC DEVELOPMENT INCENTIVES IN THE COMMUNITY REDEVELOPMENT AREA IN ORDER TO MODERNIZE THE LANGUAGE AND TO PROVIDE FOR THE DEFERRAL OF PAYMENT OF CERTAIN FEES IN ADDITION TO WAIVER OF CERTAIN FEES; PROVIDING FOR SEVERANCE; PROVIDING AN EFFECTIVE DATE. WHEREAS, the .City Commission by Ordinance 96-46 created economic incentives stimulate economic growth within the Community Redevelopment Area; and WHEREAS, the City administration has recommended modification of the economic program to attract and sustain economic growth in the Community Redevelopment Area; and WHEREAS, such economic growth aids the City and is a benefit to the public because it provides jobs for the residents of the City, increases the ad valorem tax base of the City, and provides income for residents of the City that will be spent within the corporate limits of the City thus supporting and benefiting other businesses within the City; and WHEREAS, it is particularly appropriate that economic development be targeted for Community Redevelopment Area of the City to facilitate the Community Redevelopment Plan as revised; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA THAT: Section 1. The recitals set forth above are hereby adopted and incorporated by reference herein to the same extent as if set forth here in full. Section 2. Section 1. of Ordinance 96-46 is hereby amended to read as follows: Sect¥on 1. Findings. (b) The City Commission does hereby find that it is necessary and appropriate and in the public interest that certain incentives in the form of fee reductions or waivers be for new businesses locating within the Community Redevelopment Area in order to economic growth, to expand the ad valorem tax base, to increase job opportunities all citizens of the City, and to improve the economic condition of the City and its residents lao) cf_O_ The City Commission does hereby ftnd that the creation and use of such [ incentives and their application to certain 'business in the Community Redevelopment Area is the public interest and furthers a public purpose. (e-)(d) The City Commission does hereby find that the economic incentives Ordinance are consistent with the goals, objectives and principles ofthe Community Redevelopment .Plan for the Community Redevelopment Area, as adopted bY Ordinance 90-21 enacted on August 7, 19"90, and as expanded by Ordinance No. [3 00-59 C mmumty Redevelopment Plan"), and such incentives further the purposes of the Redevelopment Plan, and are intended to promote and encourage private enterprise within the .Community Redevelopment Area as contemplated and provided by Part Chapter 163, Florida Statutes. 3. Section 2. of Ordinance 96-46 is hereby amended to read as follows: Sect'on 2. Eligible Business. that the economic development Ordinance shall only-be granted to: The City Commission does hereby incentives created and established by this (a) a business now located in the Community Redevelopment Area which is improving or enlarging its place of business within the Community Redevelopment Area or~ (b) a business locating a new place of business within the Community business satisfying the conditions of this Section 2 is hereinafter referred to as an Business, which may, in its discretion, ftle an application with the City as provided requesting one or more of the economic incentives established by this Ordinance to the review, discretion and approval of the City Commission. Nothing in this Ordinance is intended or should be construed or applied as creating or granting any vested in any Eligible Business to be entitled to any or all of the economic incentives established by this Ordinance not that there is any obligation or duty on the part of the City City Commissmn to consider, approve, grant or provide any or all of the economic incentives established by this Ordinance to any person, including an Eligible Business. Section 3. of Ordinance 96-46 is hereby amended to read as follows: Section 3. Waiver orDeferral o_f City Impact Fees. Upon an application from Eligible. Business and recommendation of the City Manager as provided in Section 6 the City Commission may, in its discretion and subject to such conditions as it may waive or defer the payment of City impact fees by the Eligible Business and the City shah pay from !egaIly available funds the amount of such City impact fees by whatever ~wn that would have otherwise been paid by the Eligible Business in the absence of approval by the City Commission and cause that payment to be .deposited in the fund or account in which .the City impact fees are customarily deposited. For purposes of this 3, "City impact fees" means a land development regulatory fee charged to new creates a need for capital improvements. Section 5. Section 4 of Ordinance 96-46 is hereby amended to read as follows: Section 4. Waiver or Dqferral of Building Permit Fees. Upon an application from an Eligible Business and recommendation of the City Manager as provided in Section 6 below, the City Commission may, in its discretion and subject to such conditions as it may establish, waive or defer the payment of building permit fees for the construction or tmprovements being done by the Eligible Business in the Community Redevelopment Area the amo account in which City building permit fe~,. For purposes of this Section 4, "building permit fees" means fees charged by the City. for reviewing and inspecting structural; mechanical, gas and electricaliconstruction in the City. Section 6. If any part of this Ordinance is determined to be invalid or illegal, then the · ' portiOn of this Ordinance shall not be affected by such determination and shall in full force and effect. 7. This Ordinance shall become effective immediately upon its enactment by the Commission. FIRST READING this [ q day of June, 2001. SECOND, FINAL READING AND PASSAGE this ~ day of July, 2001. CITY OF BOYNTON BEACH, FLORIDA mmissioner Commissioner LAP/lmf H:\ 1990L000182.BB\ORD~Incentives Amended CRA061101.doc 6/14/01 Public Notice Request for Proposals ISSUING ENTITY: CITY OF BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (CRA) PROPOSAL SUBMISSION DATE: July 21st, 2003 by 4:00 PM (Eastern Day Light Savings Time) GENERAL PROJECT DESCRIPTION The intent of the City of Boynton Beach CRA (CRA) is to obtain a Comprehensive Feasibility Analysis Team that will assist the CRA in analyzing the Savage Creatures of Ancient Seas Project within the boundaries of the CRA. The selected Comprehensive Feasibility Analysis Team will be asked to analyze the feasibility of the proposed attraction including, but not limited to; planning, marketing, operations, design, permitting, and construction of the Savage Creatures of Ancient Seas Project. RFP AND QUALIFICATION SUBMITTAL This RFQ is the only step in the procurement process for the selection of the Proposer Team to analyze the Project. There will be a pre-submittal meeting for the RFQ on Thursday, June 26th, 2003 at 1:00 PM Eastern Day Light Savings Time at the CRA Office at 639 E. Ocean Ave, Suite 107, Boynton Beach, FI 33435. The SQO must be submitted no later than 4:00 PM Eastern Day Light Savings Time on Monday, July 21st, 2003 to: CITY OF Boynton BEACH COMMUNITY REDEVELOPMENT AGENCY Attn: Douglas C Hutchinson, Director 639 E. Ocean Avenue, Suite 107 Boynton Beach, FI 33435 For further information, RFQ DOcument and Attachments contact: Douglas C Hutchinson at the above address or 561-737-2356 between 8:00 AM and 5:00 PM. 1701 City of Boynton Beach Community Redevelopment Agency (CRA) Sava_ue Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 Request for Statement of Qualifications - Phase I TABLE OF CONTENTS 1.0 GENERAL PROJECT DESCRIPTION ................................................................................. 3 2.0 BACKGROUND ................................................................................................................... 3 3.0 PROJECT SPECIFIC INFORMATION ................................................................................. 3 3.1 3.2 3.3 3.4 General Requirements ................................................................................... ........... 3 Selected Site ............................................................................................................. 3 Environmental Review'and Permitting ...................................................................... 4 Overall Risk Posture ................................................................................................. 4 4.0 THE PROCUREMENT PROCESS ...................................................................................... 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 Procurement Objectives ............................................................................................ 4 CRA Rights Regarding Procurement ........................................................................ 4 RFQ and Qualifications Submittal ............................................................................. 5 Oral Instructions and Communications ..................................................................... 5 Preliminary Procurement Schedule ........................................................................... 6 Expenses of the Proposer Teams ............................................................................. 6 Information Disclosure to Third Parties ..................................................................... 6 5.0 SUBMITTAL OF QUALIFICATIONS .................................................................................... 7 5.1 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 General Instructions ........................................................... ' ....................................... 7 Information Requirements of Qualifications Submittal ............................................... 7 Cover Letter .............................................................................................................. 8 Table of Contents.. Proposer Team Composition and Background ......................................................... 8 Technical Qualifications ............................................................................................ 9 Project Experience/Referent3 ............................................................................ 11 Request for Qualifications May 13th, 2003 Page i of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Sava_ae Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysi; CRA Project No. SCAS 2003-1 Request for Qualifications ISSUING ENTITY: CITY OF BOYNTON BEACH CRA CONTACT PERSON: DOUGLAS HUTCHINSON TELEPHONE NO. (561) 737-3256 FAX NO. (561) 737-3258 May 13, 2003 ADDRESS FOR PROPOSAL SUBMITTAL: CITY OF BOYNTON BEACH CRA ATTN: MR. DOUGLAS HUTCHINSON EXECUTIVE CRA DIRECTOR 639 E. OCEAN AVENUE, SUITE 107 BOYNTON BEACH, FLORIDA 33435 QUALIFICATIONS SUBMISSION DATE: July 21st, 2003 THE RESPONSIBILITY FOR SUBMITTING A RESPONSE TO THIS RFQ TO THE CITY OF BOYNTON BEACH CRA ON OR BEFORE THE STATED DATE AND TIME WILL BE SOLELY AND STRICTLY THE RESPONSIBILITY OF THE RESPONDENT. THE CITY OF BOYNTON BEACH CRA WILL IN NO MANNER BE RESPONSIBLE FOR DELAYS CAUSED BY THE UNITED STATES MAIL OR ANY OTHER DELIVERY SERVICE, OR CAUSED BY ANY OTHER OCCURRENCE. 1702 Request for Qualifications May 13th, 2003 Page 1 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Sava_~e Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 Request for Qualifications 1.0 2.0 3.0 GENERAL PROJECT. DESCRIPTION The intent of the City of Boynton Beach CRA (CRA) is to obtain a Comprehensive Feasibility Analysis Team that will assist the CRA in analyzing the Savage Creatures of Ancient Seas Project within the boundaries of the CRA. The selected Comprehensive Feasibility Analysis Team will be asked to analyze the feasibility of the proposed attraction including, but not limited to; planning, marketing, operations, design, permitting, and construction of the Savage Creatures of Ancient Seas Project. The Project has been identified as an attraction as more fully described in the-Staff's Feasibility Study Exhibit "A". The Project elements include: Boynton Commons Area, Iwerks 4D Theater, museum exhibit areas, offices, class rooms, store, food court, storage, etc; as defined in Exhibit "A". BACKGROUND The City of Boynton Beach CRA has completed a Staff Feasibility and Project Concepts Study and is now in the position to begin outside feasibility analysis. In order to facilitate implementation of this Project, the CRA has decided to utilize the Comprehensive Feasibility Analysis Team approach. PROJECT SPECIFIC INFORMATION 3.1 General Requirements The proposed elements that will be included in the Project are defined in the Staff's Feasibility Study (Exhibit A). This Project is located at the termination of the Boynton Beach Boulevard Extension and Promenade with components integrated into the RiverWalk feature along the Intracoastal Waterway. 3.2 Selected Site The site is located both on land and submerged lands at the Intracoastal Waterway. Note, it is proposed that the museum has at least part of its area in or over the Intracoastal Waters. The site is surrounded by environmental sensitive lands, vegetation and wildlife. The Project's analysis of design and construction must directly address these issues. 1705 Request for Qualifications May 13th, 2003 Page 3 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis 5.2.6 5.2.7 6.0 6.1 6.2 6.3 6.4 6.5 City of Boynton Beach Community Redevelopment Agency (CRA) Savacm Creatures of Ancient-Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 Financial Information ............................................................................................... 11 Project Guarantor .................................................................................................... 12 EVALUATION CRITERIA AND RANKING OF SUBMISSIONS .............................. 13 Qualifications ........................................................................................................... 13 Feasibility Qualifications .......................... References ............................................................................................................ 14 Project Team Qualifications Change Order History ............................................................................ 14 Appendix A- Required Forms Anti-Kickback Affidavit Non-collusion Affidavit of Prime Qualifier Minodty Owned Business Statement Confirmation of a Drug Free Workplace List of Exhibits' Exhibit A - Staff Feasibility Study Exhibit B - Insurance Requirements Request for Qualifications May 13th, 2003 1704 Page ii of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 5. Request clarification of the information submitted as part of the SOQ. 6. Extended the date for receipt of RFQ. 4.3 RFQ and Qualifications Submittal This RFQ is the only step in the procurement process for the selection of a Proposer Team to analyze the Project. There will be a pre-submittal meeting for this RFQ. That date is Thursday, June 25th, 2003 at 1:00 PM Eastern Day Light Savings Time at the CRA Offices at 639 E Ocean Ave, Suite 107, Boynton Beach, FI 33435 The SOQ must be submitted no later than 4:00 p.m. (Eastern Day Light Savings Time) on Monday, July 21st, 2003. City of Boynton Beach CRA Attn: Mr. Douglas Hutchinson, Director 639 E. Ocean Avenue, Suite 107 Boynton Beach, Florida 33435 In order to be eligible to receive consideration for this Project, a SOQ must be received in response to this RFQ. Proposer Teams must respond in accordance with Section 5 of this RFQ. Responses will be evaluated using the criteria set forth in Section 6 of this RFQ. During the evaluation of the SOQ, the CRA may seek additional clarification and information from Proposer Teams. 4.4 Oral Instructions and Communications The CRA is committed to a fair, open process for interested parties to receive information about procurement of the Project and the competitive solicitation process, which the CRA is proposing to utilize for selection of a Proposer Team. After distribution of this RFQ, all questions concerning this procurement process shall be directed to: City of Boynton Beach CRA Attn: Mr. Douglas Hutchinson, Director 639 E. Ocean Avenue, Suite 107 Boynton Beach, Florida 33435 (561) 737-3256 [phone] (561) 737-3258 [fax] No negotiations, decisions or actions shall be initiated or executed by a Proposer as a result of any oral discussions with the CRA. Only those communications which are in writing from the CRA shall be considered as a duly authorized expression on behalf of the 1707 Request for Qualifications May 13th, 2003 Page 5 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis 4.0 City of Boynton Beach Community Redevelopment Agency (CRA) Savaae Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysi-- CRA Project No. SCAS 2003.1 3.3 Environmental Review and Permitting The CRA anticipates that environmental review and permitting analysis responsibilities will be with the Proposer Team. 3.4 Overall Risk Posture The selected Proposer Team will enter into a Comprehensive Feasibility Analysis Agreement with the CRA for the comprehensive analysis of the Project. As the CRA proceeds through the RFQ procurement process, it will define and revise, as necessary, the overall process. THE PROCUREMENT PROCESS 4.1 Procurement Objectives The CRA is developing the Project using the Comprehensive Feasibility Analysis approach, with the intention of benefiting from the Proposer Teams' industry knowledge and experience in minimizing costs and maximizing performance. The analysis objectives of this Project are: 1. Optimization of Project Feasibility, Sizing, Capacities, Support Elements and Contents. 2. Optimization of the Project Schedule, 3. Minimization of Design and Construction Costs, 4. Optimization of Operating and Maintenance Costs, 5. Determine Concepts for Sound Design and Quality Construction for Long-term Operational Reliability. 4.2 CRA Rights Re.qardinR Procurement The CRA is not bound to accept any Statement of Qualifications (SOQ's) if the Proposer Teams do not meet CRA requirements and standards. Further, the CRA reserves the right, at its sole discretion to: 1. Accept or reject any and all submittals, in whole or in part. 2. Discuss different or additional terms to those included in this RFQ or received in any response. 3. Amend or modify any terms of this RFQ. 4. Invalidate this RFQ and issue a second RFQ. ].706 Request for Qualifications May 13th, 2003 Page 4 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis 5.0 City of Boynton Beach Community Redevelopment Agency (CRA) Sava¢ie Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 information or materials to third parties. Subject to Public Records Law, Proposer Teams may request that certain sensitive information is treated with discretion and that it be returned after completion of the evaluation process. SUBMITTAL OF QUALIFICATIONS 5.1 General Instructions One (1) unbound and fourteen (14) bound copies of the Proposer Team's SOQ must be received at the address below on or before 4 p.m. Eastern Day Light Savings Time Monday, July 21st, 2003 Facsimile copies, or electronic file copies of the SOQ will not be considered under any circumstances. SOQ must be addressed and submitted to: City of Boynton Beach CRA Attn: Mr. Douglas Hutchinson, Director 639 E. Ocean Avenue, Suite 107 Boynton Beach, Florida 33435 The following should be written on the outside of the sealed envelope or box: "Statement of Qualifications for Comprehensive Feasibility Analysis Contract for Savage Creatures of Ancient Seas Attraction, CRA Project No. SCAS 2003-1". The SOQ's will be opened publicly. The CRA will notify firms upon ranking. Proposer Teams are urged to be complete, but concise, in their responses. Sales brochures are not desired unless directly related to the response and referenced in the text. No interpretation or clarification of the meaning of any part of the RFQ will be made orally by the CRA to any potential Proposer Team. Requests for interpretation or clarification by any Proposer Team prior to the time and date of submittal must be made in writing to Mr. Douglas Hutchinson, as described eadier in this document, no later than 10 business days before the submittal is due. Responses to requests for information will be provided to all recipients of the RFQ. Any and all such interpretations and supplemental instructions will be made in the form of written addenda that will be sent to all recipients of the RFQ, and will become part of the RFQ. Proposer Teams shall acknowledge receipt of all addenda by completing a form that will be provided if an Exhibit is issued. 5.2 Information Requirements of Qualifications Submittal The SOQ must be separated into twelve sections as follows: 1. Cover Letter 2. Table of Contents 3. Proposer Team Composition and Background 4. Technical Qualifications (Specifically related to this RFQ's Scope of Work.) 1709 Request for Qualifications May 13th, 2003 Page 7 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Savaae Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 CRA. The CRA will forward to all Proposers in receipt of the Request for Qualifications, written responses of the CRA to a Proposers' question. Also, only written communications from Proposers, which are signed by persons who are authorized to contractually bind the Proposers, will be recognized by the CRA as duly authorized expressions on behalf of the Proposers. All communications to the CRA Director must be submitted in writing and are subject to distribution to all Proposer Teams. Communications sent via electronic mail will be printed and made available to all Proposer Teams. No questions shall be directed to any other parties involved in this procurement process, which include representatives of CRA management, City management, CRA's financial and legal advisors, CRA's Board of Directors and CRA's design and procurement consultants. Violation of this protocol is grounds for immediate and permanent disqualification of the Proposer Team from the procurement process. The only exceptions to this requirement are: (1) written requests regarding information or clarification made to Mr. Douglas Hutchinson, CRA Director, or (2) any communications at a pre-proposal conference or a publicly noticed meeting of the CRA. 4.5 Preliminary Procurement Schedule After submission of the Proposer's SOQ Package, the Selection Committee shall review each submitted RFQ package and rank the proposers based on the evaluation criteria noted within this RFQ. The Selection Committee can include CRA staff, board, and advisors. There will be no additional requirements. Final selection of the Proposer Team will be August 12th, 2003 at 6:30 PM at the CRA Board Meeting in City Chambers. Contract approval is targeted for October 9~, 2003 at 6:30 PM at the CRA Board Meeting at Boynton Beach City Chambers. 4.6 Expenses of the Proposer Teams The CRA accepts no liability for the costs and expenses incurred by the Proposer Teams in responding to this RFQ, responses to clarification requests and resubmittals, and subsequent negotiations. Each Proposer Team that enters into the procurement process shall prepare the required materials and submittals at its own expense and with the express understanding that Proposer Teams cannot make any claims whatsoever for reimbursement from the CRA for the costs and expenses associated with the process. Request for Qualifications May 13th, 2003 4.7 Information Disclosure to Third Parties All SOQ and subsequent information received in response to the procurement documents will become the property of the CRA and will not be returned. Notwithstanding the foregoing, Proposer Teams recognize and agree that the CRA will not be responsible or liable in any way for any losses th~t?(~l~e Proposer Team may suffer from the disclosure of Page 6 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Savaae Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003.1 Additionally, the SOQ shall identify the parties that will undertake the roles for various analysis elements. The history, ownership, organization and background of the Proposer Team shall be provided. If the respondent is a joint venture, the required information shall be submitted for each member of the joint venture firm. Details of the organizational structure of the joint venture shall be given. Proposer Teams must recognize that its key assigned employees, along with subcontractors and their key employees included in the SOQ, will be used as part of the basis for selecting Proposer Teams. Therefore, changes to Proposer Teams, including major subcontractors and key employees, will not be allowed except for extenuating circumstances, such as corporate takeovers, buyouts and other unforeseen changes. 5.2.4 Technical Qualifications (Specifically Related to Museum and Attraction Analysis of Feasibility, Design and Construction) Proposer Teams responding to the RFQ shall demonstrate their ability to undertake the Project by providing the technical qualifications of the Proposer Team, principal sub- contractors, equipment suppliers, and individual Team members. The CRA will give utmost consideration to experience related to the feasibility analysis, design and construction of facilities within a similar scope and budget. Proposer Teams shall provide evidence of their experience in the form of feasibility analysis, design, construction budgets and schedules of similar Projects. Of critical importance is the evidence of on-going involvement with project creation, design, construction, opening and actual operations. CRA and the Selection Committee reserve the right to conduct an independent investigation of the Proposer Team's and its subcontractors' technical qualifications by contacting Project references, accessing public information, or contacting independent parties. Additional information may be requested during the evaluation of technical qualifications. As a minimum, the Proposer Team shall provide the following information to demonstrate their technical qualifications: 1. Feasibility Study and Analysis Experience - Proposer Teams shall provide its study analysis experience of similar facility feasibilities, Collective Comprehensive Feasibility Analysis experience and operating project experience. 2. Specifically, the Proposer Team shall outline the work activities performed by the proposers own work force. 3. Paleontology Interfacing, Educational Linkages and Exhibits Development - Proposer Teams shall provide its experience of similar facilities and contacts with Paleontologists, Educators (local, regional and national) and related exhibit development. Specifically, the Proposer Team shall outline the work activities performed by the proposers own work force. 1711 Request for Qualifications Page 9 of 26 Savage Creatures of Ancient Seas Attraction May 13th, 2003 Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Savaae Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003.1 5. Project Experience / References. 6. Financial, Project Guarantor, and Performance Bond Information. 7. Resumes. 8. Technical Experience in Preparing Budgeting, Operating and Cost Analysis. 9. Outline of Change Order Requests from Past 5 Projects. 10. Standard Forms 254 and 255. 11. Copies of Required Licenses. 12. Appendix A must be completed and submitted with any RFQ response in order to have a valid submittal. They are: · Anti-Kickback Affidavit · Non-collusion Affidavit of Prime Qualifier · Minority Owned Business Statement · Confirmation of a Drug Free Workplace The format of the SOQ must be as outlined above. Narrative pages are to be 8-1/2 inches by 11 inches, and shall be bound into the volume. A clear and concise presentation of information is :encouraged with an approximate page guideline not to exceed 25 pages, not including resumes of key staff, brochures (only if directly applicable to response), and financial information. The CRA will appreciate brevity and clarity. Non-written audiovisual materials will not be accepted. Below is additional information about the submission requirements to this RFQ. 5.2.1 Cover Letter The SOQ must include a cover letter containing the name, title, address, telephone number, fax number, and e-mail address of the Proposer Team and the principal contact person. The cover letter shall also include a complete listing of all companies that form the Proposer Team. 5.2.2 Table of Contents A table of contents shall be included in the SOQ, itemizing the contents of the Proposer Team's submission. 5.2.3 Proposer Team Composition and Background The SOQ shall indicate the name and type of firm or organization (corporation, partnership, joint venture, etc.) that will serve as the contracting party, and provide the name of the single-entity responsibility for the Project. A Project organization chart is required, with the individuals assigned to key Project positions identified by name. 1710 Request for Qualifications May 13th, 2003 Page 8 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Savaae Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 5.2.5 Proiect Experience/References In addition to providing technical qualifications and experience, the Proposer Team shall provide a list of directly relevant Project the Proposer Team has completed within the past five (5) years. A brief description of these selected Projects shall be provided, including current status, photograph and a description of the Proposer Team's specific involvement in each of these Projects. Additionally, the Proposer Team shall describe the history of the relationships among the Team members, including a description of past working relationships. Presentation format is at the discretion, of the Proposer Team, as long as all requested information is provided. For each of the Project identified, provide the following information: Name and location of Project, · Customer and owner, · Current status (design, construction, or operations phase), · Description of facilities, including size and location, · Key Project contact of Proposer Team for the given Project, · Key Project contact of the customer, · Key personnel involved with each major phase; if joint partnership, indicate participating firms, · Project Budget Adherence, · Change Order History, · Project Schedule Adherence, · Photograph of Project. venture or 5.2.6 Financial Information The Proposer Team shall provide full disclosure of its financial position and, if applicable, the financial position of the corporation guaranteeing the Proposer Team's obligations under a contract eventually executed. Financial information that must be included as part of the SOQ includes the following: Financial Statements - The SOQ must include copies of the most recent annual report filed with the Securities and Exchange Commission (SEC) on Form lO-K, and supporting documents, and all quarterly reports filed with the SEC on Form IO-Q since the last IO-K was filed. If IO-K or IO-Q reports reference other reports that describe the respondent's financial condition, copies of such reports shall be provided. If the Proposer Team is not required to make periodic filings with the SEC, the Proposer Team shall submit (a) audited financial statements for the past three fiscal years, including income statements, balance sheets, and statements of changes in financial positi~l;3(b) copies of the latest quarterly financial reports Request for Qualifications May 13th, 2003 Page 11 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Sava¢m Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003.1 4. Design Experience -The Proposer Team shall provide its engineering and design experience for the feasibility analysis of the Project Facilities. The information submitted should demonstrate experience with exhibit design, architectural design, large format 4D theaters, construction and engineering as required on the Project. Further consideration will be given for familiarity with the permitting unit processes, and an understanding of the interrelationship between design, construction, and phasing of future improvements. 5. Construction Experience -The Proposer Team shall provide its experience with construction of project improvements including "in-water" or "under-water" construction projects. 6. Regulatory Compliance and Permitting Experience -The Proposer Team shall submit its experience with regulatory compliance and pe.rmitting feasibilities. This shall include submission of its experience with understanding permit conditions and complying with local, state, environmental and other regulatory requirements for a similar facility. 7. Key ProjeCt Staff - The Proposer Team shall provide the qualifications of all key staff assigned to the Project. This submission shall include the key Project staff of the contracting firm, its parent (if applicable), partner firms, and major subcontractors. Information shall include length of time practicing in profession, familiarity with feasibility, design and construction and proposed Project leadership. Full resumes of key personnel for each containing experience for above items 1 through 7, shall be provided.. 8. Additional Technical Services Capabilities -Unless provided in response to items 1 through 7 above, the Proposer Team should provide a one to two page summary of the Proposer Team's experience and capabilities in the following areas: · Concept Analysis, · Feasibility Analysis, · Market and Competition, · Attendance Capture and Demographic Analysis, · Cash FIowAnalysis, · Operating, Staffing, and Organizational Structure Analysis · Marine Boardwalk Design, · Large Format Interactive Theater Design, · Relationships with Paleontologists and Educators, · Construction and Project Safety Engineering, · Environmental Permitting. Proposer Teams should note that the inability to provide eVidence for each category using internal Team resources does not necessarily constitute a lack of qualifications. Proposer Teams should address this issue in th~,J/l~ritten proposal, explaining their approach. Request for Qualifications May 13th, 2003 Page 10 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis 6.0 City of Boynton Beach Community Redevelopment Agency (CRA) Savaae Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 as the contracting party. If a subsidiary has been formed solely to respond to this RFQ, the reasons for this action must be fully disclosed. EVALUATION CRITERIA AND RANKING OF SUBMISSIONS PURSUANT TO THE PROVISIONS OF F.S. 287.055, KNOWN AS THE "CONSULTANTS COMPETITIVE NEGOTIATIONS ACT" The CRA will provide an interview panel which will review all RFQ responses, formally interview eligible and top ranking qualifiers and recommend the top firms. These recommended finalists will be presented to the CRA Board who may, at their option, request formal presentations prior to the final selection of a consultant for this project. Staff and Company reviews will be conducted pursuant to the provisions of the Sunshine Law and F.S. 287.055, known as the "Consultants Competitive Negotiations Act". The evaluation of the SOQ will be a one-stage process, consisting of the f~valuation of Qualifications and then the selection and negotiations, as described below. 6.1 Qualifications Proposer Teams will be evaluated for Qualifications based on the evaluation scoring criteria presented in Table 1. The numbers adjacent to the criteda represent the maximum value awarded for the level of demonstrated experience or documentation provided by each Proposer Team in their Statement of Qualifications. Based on the combined evaluations, the CRA will prepare a ranking of Proposer Teams. The three highest ranked Proposer Team may be invited make a presentation to the CRA. TABLE 1 Evaluation Rating Project Project Qualifications 45 Change Order History TOTAL References 10 Project Team Qualifications 40 5 100 6.2 Project Qualifications Team's experience in the business of feasibility analysis with comprehensive knowledge of the proposed content, paleontology, educational facilities, large format 4D theaters, 1715 Request for Qualifications May 13th, 2003 Page 13 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Savai3e Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 for the prior three years; and (c) a statement regarding any material changes in the mode of conducting business, bankruptcy proceedings, and mergers or acquisitions for the past three years, as well as any disclosure of any potential mergers or acquisitions. 2. Direct and Indirect Fixed or Contingent Obligations - Proposer Teams must also provide detailed information concerning all direct and indirect fixed or contingent liabilities undertaken by the Proposer Team respondent(s), its parents, affiliates, and subsidiaries in connection with other Project, whether by way of financial or performance commitments, open letters of credit, guarantees, or otherwise that may limit its financial exposure for the Project. 3. Credit Ratings - If the Proposer Team or proposed Project Guarantor has short-term or long-term obligations rated by Moody's Investor's Service, Standard & Poor's Corporation, Fitch IBCA, or Duff & Phelps, such ratings shall be provided. 4. Litigation - The Proposer Team shall disclose any outstanding litigation that could potentially impact its financial condition if judgment is brought against the Proposer Team. 5. Insurance - The Proposer Team shall be required to provide insurance coverage as indicated in Attachment A. 6. Financial Information Requirements Relating to Responses Submitted by Consorfiums, Joint Ventures Or Partnerships- If a consortium, a joint venture, or a partnership is submitting the SOQ, the SOQ shall identify all parties and relationships. Each member of such consortium, joint venture, or partnership shall provide full disclosure information regarding their financial strength as specified in this section for individual respondents. 5.2.7 Project Guarantor Proposer Teams responding to this RFQ must have a single Project Guarantor to fulfill all the financial obligations required for analysis of the Project. Within the SOQ, the Proposer Team shall clearly identify the Project Guarantor. This identification shall also include a statement that the Project Guarantor will fully guarantee all obligations of the contracting party for the feasibility analysis of the Project. The Project Guarantor may be the contracting party, its parent company, or a sufficiently capitalized general partner that is an integral part of the respondent's Team. Proposer Teams must demonstrate to CRA that their Project Guarantor has the capability and legal commitment to guarantee the financial obligation of the Proposer Team for the Project. If a sole purpose subsidiary (e.g. joint venture) is created as the contracting party, the parent company or one or more of the partner firms, shall be the Project Guarantor to guarantee performance of the subsidiary's obligations. A subsidiary with limited capitalization and without the full parent company or partner.guarantee will not be allowed 1714 Request for Qualifications May 13th, 2003 Page 12 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis Community I~edevel-opment Agency (CRA) Sava_~e Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 APPENDIX "A" · Anti-Kickback Affidavit · Non-collusion Affidavit of Prime Qualifier · Confirmation of Minority Owned Businesses · Confirmation of Drug Free Workplace 1717 THIS PAGE TO BE SUBMITTED ALONG WITH RESPONSE IN ORDER FOR PACKAGE TO BE CONSIDERED COMPLETE AND ACCEPTABLE. City of Boynton Beach Community Redevelopment Agency (CRA) Sava_~e Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 exhibit and architectural design, construction, environmental permitting and actual operational linkages for the Project. 6.3 References Team's references as it relates to the ability of the Team to perform within schedule and on budget for similar Project. 6.4 Proiect Team Qualifications Team's experience in various relevant technical disciplines: · Operational Analysis, · Content Analysis, · Market and Capture Analysis, · Network Linkages To Paleontologists And Educators, · Support Elements Analysis (food concessions, stores, rentals, development), · Local, State And Federal Permitting Processes And Compliance, · Architectural Design, · Exhibit Design, · Large Format 4D Theater design · Civil/Engineering Design, · Marine Boardwalk Design, · Structural Design, · Landscaping Design. · Local, State And Federal Permitting Processes And Compliance, · Environmental Engineering product 6.5 Chanqe Order History Team's past history of change orders. Specifically, this task is related to the change orders that were NOT requested by the Owner of the Project. This element of the proposal Will be verified with the references or other contacts that the CRA conducts. 1716 Request for Qualifications May 13th, 2003 Page 14 of 26 Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis City of Boynton Beach Community Redevelopment Agency (CRA) Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 NONCOLLUSION AFFIDAVIT OF PRIME QUALIFIER State of ) County of .) , being first duly sworn, deposes and says that: l) He is of , the (Title) (Name of Corporation or Firm) qualifier that has submitted the attached RFQ: 2) He is fully informed respecting the. preparation and contents of the attached submittal and of all pertinent circumstances respecting such submittal; 3) Said RFQ is genuine and is not a collusive or sham RFQ; 4) Further, the said qualifier nor any of its officers, partners, owners, agents, representatives, employees or parties in interest, including this affiant, has in any way colluded, conspired, connived or agreed, directly or indirectly with any other qualifier, firm or person to submit a collusive or sham RFQ in connection with the Contract for which the attached RFP has been submitted or to refrain from bidding in connection with such Contract, or has in any manner, directly or indirectly, sought by agreement or collusion or communications or conference with any other qualifier, firm or person to fix the price or prices in the attached RFP or of any other qualifier, or to fix any overhead, profit or cost element of the RFQ price or the RFQ pdce of any other qualifier, or to secure through any collusion, conspiracy, connivance or unlawful agreement any advantage against the (Local Public Agency) or any person interested in the proposed Contract; and 5) The price or prices quoted in the attached bid are fair and proper and are not tainted by any collusion, conspiracy, connivance or unlawful agreement on the part of the qualifier or any of its agents, representatives, owners, employees, or parties in interest, including this affiant. 1719 THIS PAGE TO BE SUBMITTED ALONG WITH RESPONSE IN ORDER FOR PACKAGE TO BE CONSIDERED COMPLETE AND ACCEPTABLE Community Redevelopment Agency (CRA) Sava.qe Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 ANTI-KICKBACK AFFIDAVIT STATE OF FLORIDA COUNTY OF PALM BEACH SS I, the undersigned hereby duly sworn, depose and say that no portion of the sum herein submitted will be paid to any employees of the City of Boynton Beach CRA as a commission, kickback, reward of gift, directly or indirectly by me or any member of my firm or by an officer of the corporation. By: NAME - SIGNATURE Sworn and subscribed before me this day of ,20 Printed Information: NAME TITLE NOTARY PUBLIC, State of Florida at Large COMPANY "OFFICIAL NOTARY SEAL" STAMP 1718 THIS PAGE TO BE SUBMITTED ALONG WITH RESPONSE IN ORDER FOR'PACKAGE TO BE CONSIDERED COMPLETE AND ACCEPTABLE. Community I~edevel-opment Agency (CRA) Sava_cle Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 CONFIRMATION OF MINORITY OWNED BUSINESS This requested form will be made a part of our files for future use and information. Please fill out and indicate in the appropriate spaces provided which category best describes your company. Return this form with your submittal sheet making it an official part of your RFQ response. ( ) AMERICAN INDIAN ( ) ASIAN ( ) BLACK () HISPANIC ( ) WOMEN ( ) OTHER (Specify) Do you possess a Certification qualifying your business as a "Minority Business"? YES NO Owned If YES, name the Organization from which this certification was obtained and date: Issuing Organization for Certification Date of Certification 1721 THIS PAGE TO BE SUBMITTED ALONG WITH RESPONSE IN ORDER FOR PACKAGE TO BE CONSIDERED COMPLETE AND ACCEPTABLE City of Boynton Beach Community Redevelopment Agency (CRA) Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 Subscribed and sworn to before me This day of My commission expires (Signed). (Title) ,20~ 1720 THIS PAGE TO BE SUBMri-rED ALONG WITH RESPONSE IN ORDER FOR PACKAGE TO BE CONSIDERED COMPLETE AND ACCEPTABLE City of Boynton Beach Community Redevelopment Agency (CRA) Savacle Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 EXHIBIT A- Feasibility Study 1723 Community I~edevel-opment Agency (CRA) Sava_oe Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 CONFIRMATION OF DRUG-FREE WORKPLACE IDENTICAL TIE SUBMITTALS Preference shall be given to businesses with drug-free workplace programs. Whenever two or more submittals which are equal with respect to price, quality, and service are received by the City of Boynton Beach CRA or by any political subdivision for the procurement of commodities or contractual services, a submittal received from a business that certifies that it has implemented a drug-free workplace program shall be given preference in the award process. Established procedures for processing tie submittals will be followed if none of the tied vendors have a drug-free workplace program. In order to have a drug-free workplace program, a business shall: 1) Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the actions that will be taken against employees for violations of such prohibition. 2) Inform employees about the dangers of drug abuse in the workplace, the business's policy of maintaining a drug-free workplace, any available drug counseling, rehabilitation, and employee assistance programs, and the penalties that may be imposed upon employees for drug abuse violations. 3) Give each employee engaged in providing the commodities or contractual services that are under submittal a copy of the statement specified in subsection (1). 4) In the statement specified in subsection (1), notify the employee that, as a condition of working on the commodities or contractual services that are under submittal, the employee will abide by the terms of the statement and will notify the employer of any conviction of, or plea of guilty or nolo contendere to, any violation of Chapter 893 or of any controlled substance law of the United States or any state, for a violation occurring in the workplace no later than 5 days after such conviction. 5) Impose a sanction on, or require the satisfactory participation in a drug abuse assistance or rehabilitation program if such is available in the employee's community by, any employee who is so convicted. 6) Make a good faith effort to continue to maintain a drug-free workplace through implementation of this section. As the person authorized to sign the statement, I certify that this firm complies fully with the above requirements. 1722 Vendor's Signature City of Boynton Beach Community Redevelopment Agency (CRA) Sava_oe Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 III IV INSURANCE REQUIREMENTS For FIRM: GENERAL LIABILITY PROPOSER TEAM agrees to provide comprehensive general liability Insurance for the benefit of CRA with combined single limits of $1,000,000 per occurrence combined single limit for Bodily Injury and Property Damage liability. Coverage must be afforded on a form no more restrictive than the latest edition of the Comprehensive General Liability Policy, without restrictive endorsements, as follows and shall include: Premises or Operations; Independent Contractors; Broad Form Property Damage; Broad Form Contractual Coverage applicable to this specific Agreement, including any hold harmless or indemnification agreement; and Personal Injury Coverage with Employee and Contractual Exclusions removed with minimum limits of coverage equal to those required for Bodily Injury Liability and Property Damage Liability. The CRA and the City of Boynton Beach are to be included as "Additional Insured" with respect to liability arising out of services performed for CRA by or on behalf of PROPOSER TEAM or acts or omissions of PROPOSER TEAM in connection with such services. PROFESSIONAL LIABILITY PROPOSER TEAM agrees to provide professional liability insurance for the benefit of CRA with combined single limits of $1,000,000 per claim and which insures against errors and omissions by PROPOSER TEAM, its sub consultants and design professionals. WORKER'S COMPENSATION PROPOSER TEAM agrees to provide Worker's Compensation and Employer's Liability Insurance for the benefit of PROPOSER Team's employees, if required by law. INDEMNIFICATION In performing its services hereunder, the PROPOSER TEAM will use that degree of care and skill ordinarily exercised, under similar circumstances, by reputable members of its profession practicing in the same or similar locality at the time the services are provided. It is agreed that the PROPOSER TEAM is not a fiduciary of the CRA. The PROPOSER TEAM and the PROPOSER TEAM's officers, directors, employees, agents, and the PROPOSER TEAM'S consultants, sub consultants, and any of them, shall indemnify and hold harmless the CRA or to anyone claiming by, through or under the CRA or third parties, for any and all claims, losses, costs or damages whatsoever arising out of, resulting from or in any way related to the services under this 1725 City of B°ynton Beach Community Redevelopment Agency (CRA) Savage Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 EXHIBIT B- Insurance Requirements 1724 Xl XII XIII City of Boynton Beach Community Redevelopment Agency (CRA) Savaae Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003.1 must be afforded on a form no more restrictive than the latest edition of the Comprehensive General Liability Policy, without restrictive endorsements, as followed by CPA'S Insurance Services Office and shall include: Premises and/or Operations; Independent Contractors; Broad Form Property Damage; Broad Form Contractual Coverage applicable to this specific Agreement, including any hold harmless or indemnification agreement; and Personal Injury Coverage with Employee and Contractual Exclusions removed with minimum limits of coverage equal to those required for Bodily Injury Liability and Property Damage Liability. The CPA and the City of Boynton Beach are to be included as "Additional Insured" with respect to liability arising out of services performed for CPA by or on behalf of PRIME DESIGN PROFESSIONAL or acts or omissions of PRIME DESIGN PROFESSIONAL in conneCtion with such services. WORKER'S COMPENSATION PRIME PROFESSIONAL shall provide worker's compensation insurance to apply for all employees in compliance with the "Workers Compensation Law" of the State of Florida and all applicable Federal laws for the benefit of PRIME PROFESSIONAL'S employees. In addition, such insurance must include employer's liability coverage with a limit of no less than One Hundred Thousand Dollars ($100,000.00) for each accident. , AUTOMOBILE LIABILITY PRIME PROFESSIONAL shall provide automobile liability insurance covering all owned, hired and non-owned automobile equipment. Limits: Bodily Injury Property Damage $100,000 each person $300,000 each occurrence $ 50,000 each occurrence CERTIFICATES OF INSUPANCF Before commencing work pursuant to this contract, PRIME PROFESSIONAL shall furnish CPA a duplicate policy of Certificate of Insurance for the required insurance as specified above, which shall contain the following: A) Name of insurance carrier(s). B) Effective and expiration dates of policies. C) 30 days written notice by carrier of any cancellation or material change in any policy. D) Duplicate Policy or Certificates of Insurance stating that the interests of CRA are included as an additional named insured, and specifying the Project/location. Such insurance shall apply despite any insurance which CPA or the City of Boynton Beach may carry in its own name. 1727 'V VI VIII IX X City of Boynton Beach Community Redevelopment Agency (CRA) Sava_ee Creatures of Ancient Seas Attraction Comprehensive Feasibility Analysis CRA Project No. SCAS 2003-1 Agreement from any cause or causes, including but not limited to, the negligence, professional errors or omissions, strict liability or breach of contract or any warranty, express or implied. AUTOMOBILE LIABILITY PROPOSER TEAM agrees to provide automobile liability insurance covering all owned, hired and non-owned automobile equipment. Limits: Bodily Injury - $100,000 each person $300,000 each occurrence Property Damage - $ 50,000 each occurrence CERTIFICATES OF INSURANCE Before commencing performance of this contract, PROPOSER TEAM shall furnish CRA with a duplicate policy of Certificate of Insurance for the required insurance as specified above, which shall contain the following: A) B) c) D) Name of insurance carrier(s). Effective and expiration dates of policies. 30 days written notice by carrier of any cancellation or material change in any policy. Duplicate Policy or Certificates of Insurance stating that the interests of CRA are included as an additional named insured, and specifying the Project. Such insurance shall apply despite any insurance which CRA or the City of Boynton Beach may carry in its own name. SUBCONTRACTO~ SUBCONSULTANTINSURANCE PROPOSER TEAM is advised to require all of its subcontractors and sub consultants to provide the aforementioned coverage as well as any other coverages that PROPOSER TEAM may consider necessary, and any deficiency in the coverages or policy limits of any subcontractors and sub consultants will be the sole responsibility of PROPOSER TEAM. For PRIME PROFESSIONAL: PROPOSER TEAM agrees that the PRIME PROFESSIONAL for the Project shall meet the following requirements and PROPOSER TEAM is responsible for PRIME PROFESSIONAL'S compliance with same. PROFESSIONAL LIABILITY PRIME PROFESSIONAL shall provide professional liability insurance with minimum limits of liability of One Million Dollars ($1,000,000.00). GENERAL LIABILITY PRIME PROFESSIONAL shall provide comprehensive general liability including contractual coverage applicable to this Agreement with minimum limits of One Million Dollars ($1,000,000.00) per occurrence combined single limit for Bodily Injury and Property Damage Liability. Coverage 1726 DEPARTM. ENT OF DEVELO.PM. E. NT Community Improvement Dw $ on Memorandum DD 03-060 TO: FROM: THROUGH: DATE: RE: Douglas Hutchinson, CRA Director Octavia Sherrod, Community Improvement Manager Quintus L. Greene, Development Director~ 5/7/03 Palm Beach County Core Regions Grant The Development Department of the City of Boynton Beach is requesting that the Community Redevelopment Agency assume full responsibility for administering the Palm Beach County Core Regions Grant, and provide $35,000 to fund two applications that are pending. The Palm Beach County Board of County Commissioners through it's Office of Economic' Development currently administers a Development Regions Grant Program designed to stimulate economic growth and increase business opportunities in or adjacent to designated blighted areas of palm Beach County. The goal of this program is to encourage economic investment and diversification within these communities, increase job growth and entrepreneurial opportunities, revitalize commercial districts and focus on positive human resource development in an effort to improve the quality of life. The following is a list of previous participants and the amounts of funded: County Funds Local Funds Private Funds Caf~ Barista $25,000 $4,178 $9,631 Fisherman's Catch $25,000 $6,250 $200,000 $cully's Market $25,000 $6,250 $88,000 Dolphin Plaza $83,000 $41,500 $61,302 The Shipwreck Restaurant $65,000 $16,250 $67,302 My Emotions $65,000 $16,250 $268;750 United Forward $50,000 :$25,000 $125,000 Total $338,000 $115,678 $819,985 The following is a list of applicants who have been approved by the county and are awaiting final contract executions and required match funding: Innovative Window Concepts Boynton Seafood *United Forward, Inc. Total County Funds Local Funds Private Funds $48,000 $25,000 $ 289,216 $18,000 $10,000 $ 46,000 $50,000 $50,000 $1,384,146 $116,000 $85,000 $1,719,362 *United Forward, Inc. was awarded an additional grant from Palm Beach County through the Housing and Community Development Office (HCD), which required a 50% match and counts additional jobs over the amount required for the Office of Economic Development. ! 766 One of the requirements of the application is that the business be located "within or adjacent to the core area", the City recognized that this applicant was not located directly in the targeted or distressed area, however they have made a firm commitment to the City and it's partners to make sure that jobs are marketed to Iow income DD Memorandum 01~XXX Subject 05/08/03 Pg. 2 of 2 residents of our redevelopment area. They are currently housed in an approximately 26,000 sq. ft. facility which was not available within the CRA area, and have future plans to expand, which will require additional space as well as provide additional jobs. 1767 S:\DEVELOPMENT~CID\MEMO - CORE GRANT TRANSFER TO CRA - 5-7-03.DOC UIVXTffD FORH/RRDt Inc. & UF Fluid System~ Xnc. HOUSING AND COHHUNI"rY DEVELOPHEHT COMMUNZTY DEVELOPMENT BLOCK GRANT (CDBG) PROGR,a;,' APPI. ZCATION FOR ECONOMZC DEVELOPHENT A ..C1TgT~~ "APPI TCATXON MUST BE TYPED" Phone: (561) 233-3616 J'or assistance APPLICANT INFORNATZON. Name of Business/OrganizaUon/Municipality: Federal Tax I.D. Number (if applicable): Type of Ownership (Businesses Only): Name of Contact Person: Title: Address: City; State; Zip Code: Area Code and Telephone: Print Name and Title of Person Signing: Due: 5:00 p.m. United Forward Inc. & UF Ruid Systems, Inc.' '- City of eoynton Beach 65-0711988 United Forward, Inc. 65-1137979 UF Ruid Systems~ Inc. C Corpora~n Kevin Mushlin OperaUons Manager 301 Yamato Rd., Ste. 2121 Boca RaLon, FL 33431 561-99~9441 / 561-994-8331 fax Pavel Rodnevsld, President Signature: Oate: % II. A~ AND PROJECT ZNFORMA'I'ZON In this application, the word activity denotes the action(s)'for which you are requesting CDBG funds. The four eligible addvftles are listed- below. The word ~ denotes the expansion in your bus/ness or other significant change that you are seeking to accomplish with various sources of funding. ACTIVl'TY LOCAI'JOri -" (The activity must be located in or adjacent to a Development Region. Maps depicting these regions may be viewed at HCD.) Activity Address: 4020 Thor Drive, Boynton Beach; FL.33426LS407 Property Control Number(s): 08-43-46-05-00-000-7110 Owner of Property: Un,ted Forward, Inc. 1768 UNTTED FOR~ARD~ Znc. & I. IF Fluid Sy~tem~ Xnc, 4. Owner's Address: 30! Yamato Rd., Ste. 212!, Boca Raton, FL 33431 5. Owner's Telephone Number: 56!-994-944:i./56!-994-833! fax ' (PleaSe attach two mans showing_ the location of your ~__dLMt, v. One should be a street mar) and the'ob'-,er a mad showino block and lot numl;~rs). A survey is also provided in Exhibit 6 because of the poor quality of the plat map. PRO3ECT/ACTZVTTY DESCR~PTZON Proposed activity start date: O September - December 2002 (Depending on when the BCC reviews projects. Please see Exhibit 8: Project Schedule.) Estimated activity completion date: @ March 2003 (Please see Exhibit 8: Project Schedule) Activity Type Acquisition of real property ];mprovements to sb'uc~ures X AcquisiUon of equipment (excluding vehides) New construction Please describe in detail the activity for which you are requesting CDBG funds.' United Forward Inc. and UF Fluid Systems Znc. are requesting CDBG assistance for Phase V of a V~ phase project. Phase V specifically Involves purcl~ase of n~ry extrusion equipment crucial to UF's expansion Into manufacturing of automotive rubber hoses. Please describe the overall project in detail and explain how this activity described above fits into it, United Forward, [nc. ("UF'3 Is a Rorida C incorporated In :[996 by Pavel Rodnevski. The Company was established to promote international trade and export innovative products and services to Eastern European Countries. UF sells automotive, oil/gas, manufacturing and processing goods and service~. Zn 200:[.UF initiated an expansion into manufacturing automotive fuel hoses in the United States. UF's subsidiary company, UF Fluid Systems, [nc. will manufaCtUre hoses at the new Bo~nton Beach Nanufacturing fadlity it purchased in October 200:1. UF is currently in for permits to renovate the facility and hopes to install its first Extrusion Une in fall of 2002 (Phase IV). This grant request is for assistance in purchasing manufacturing equipment (Extrusion line #2/ Phase V). This respective phases of this project are deacrihad In greater detail In Exhibit 8: Site Znformation and Project Schedule, and in Exhibit 3: Busines~ Plan and 5 Year Projections. Please describe your existing operation as it relates to this project. :~ndude the total number of employees and the number of employees by function, e~g. management, production, sales, support staff. At the present time, United Forward, Znc. and UF Fluid Systems [nc. employ 12 FTE employees in Boca Raton and Boynton Beach. The majority of'these positions are administrative (support), management and technical jobs while newer positions are production-related. UF and related companies have pledged to create an additional 10 FIE Jobs in their May :tO, 2002 application (to the Qb/of Boynton Beach and the Palm Beach County Office of Economic Development) for Round 6 Development Regions funds. The Development Regions application encompasses only Phases ! thru Phase 1V in terms of budget and financial commitment. These Job schedules are provided in Exhibit 7: HaintenancelEqulpmentl3ob Certification and Existing & Development Regions :lob Schedules. The :tO FTE Jobs proposed under this CDBG Economic Development Program Application are in addition to the existing and Development Regions jobs and will be defined as Phase V and are described in greater detail on page 6 of this application. UF is committed to creating Jobs for Iow-and-moderate-income persons. Of the 10 projected, 70% will go to LM! individuals. ]n addition, more than 30% of the new positions will go to Individuals in the unincorporated parts of Palm Beach County or those residing In communities that participate In the HCD Urban County Program. All positions will be advertised with the Worldorce Development Board and targeted to the Development Regions Area of the City of Boynton Beach. The project:meets CDBG National Objectives in terms of benefiting Iow-and moderate-income persons, eliminating slum and blight (improving property and subsequently the tax base) and meeting urgent needs (employment In a sluggish and uncertain economy). PRO3ECT/ACI'lrVl'FY COST SUMMARY AND FUND~Nn ! 769 2002 CZ)BE Economic Development Program Application 2 LIIV-rTffD FORWARD~ .mc, & IJF Fluid Systems~ .mc Exhibit ~l ; CDB~ Applicat/on Please state the overall project cost: $5,639,146 Please indicate the munidpaflty's matching contribution (if applicable): $50,000 (For activities located in an Entitlement Municipality (he. West Palm Beach, Boynton Beach, Delray Beach, and Boca Raton) the municipality or its CRA must provide dollar for dollar cash match to the amount of CDBG funding awarded. Documentation is required from the municipality committing to the provision of the required match.) Please indicate the sources and uses of funds for the project on the following table. The sources, other than CDBG, are your leveraging contribution. Source and Type Est. Date Available Amount CDBG Request (Phase V) 1~ Quarter 2003 $50,000 City of Boy~on ~ch funds - Ma~ch for CDBG Approved 7/2/02 Application (Phase V) $50,000 Company's fluid cash - Owner Equity (Phase I) Spent dudng Phase ! - $555,0.00 Contfibut~l at time of Company's bank loan(s) for-building, purchase and . bu!lding purch-_-._~ Phase I, ff and III- · $2,qO0,000 renovation - Advantage Bank (1=$1,300,000 and Loans Closed on 6/20/02 2=$1,100,000 .- Phases Ir II and III) Otfler (spe~y) - Development Regions Hatch - City of Approved 5/21/02 $25,000 Boynt~n Beach (Phase Ob~er County funds - Round 6 Development Regions Highly ranked by Staff $50,000 Application (Palm Beach County Office of Economic and OEDP, BCC ~o vote Development) PENDING (Phase IV) on 9/10/02 Two Loans for Equ;p~ent Purchase (1=$1,125,000 - #1 - 4t~ Quarter 2002 $2,509,146 Phase ZV~ 2=~;1~38~146~ Phase V) #2 - 1'~ C~uarter 2003 Total Sources $5,639,146 U~ of Funds (Project Budget) Sources of Funds Amount .... Acquisition of real property (Phase I) Company Equity and $1,500,000 Advantage Bank Loan Construction of n~w s~ructure Renovation of existing structure {Phase III) Advantage Bank Loans $1,382,591 · "Other soft costs/contingenW (Phase ~rlI) Advantage Bank Loans $72,409 Machinery and equipment 1't F-xt~sion Une (Phase 1%0 Fisher Enterprises, LLC & $1,200,000 '- Development Regions 2nd Extrusion Line (Phase V) BC Leasing Associates & $1,~84,146 CDBG 3r~ Extrusion Une (Phase VI) TO BE DETERHINED TBD To~ai U=ec~ $5~639~146 NOTE: All applicants must leverage requested CDBG funds through cash, equity~ or real property. Proof of the availability of the leveracflnc~ r=gourcc-~_ must be nrovided - 1770 2002 CDBE Economic Development Program ApplJcab'on 3 IJtVITED FORIqARD~ Inc. & UF Fl#i# b~/$tem~ Inc. Bxl~ibit 1: CDB~ Applicat/on Please state the total activity cost: (Phase V) ~ Please state the amount of CDBG funds you are requesting: $50.000 Please orovide a detailed budget of the orooosed use 'of CDBG funds. Please see Exhibit 2: Budget Information. ACT'WI'TY COST EFFECTIYENESS AND REASONABL~NESn Calculate the amount of CDBG funds to be used per job that will be $5,000 created/retained: Wilithe activity cause temporary or permanent displacement of persons or existing businesses7 Yes No X N/A (NOTE 1: An activity will cause displacement if the property is occupied by owners or tenants at the time this application is submitted.) (NOTE 2: Any activity which may cause displacement of residents and/or businesses shall provide the following prior to the award of any contract: a) a relocation plan meeting all requirements of 2'[ CFR 570.606, as amended. This plan shall be certified by a consultant cer'dfled by HUD, 'or an agency of HUD as meeting all legal requirements; b) a document legally binding the grant awardee to place in the project budget sufficient funds to fully implement the relocation plan; c) an executed indemnification and hold harmless agreement to protect the County against any and all costs incurred for the displacement and relocation of persons or businesses affected by the activity.) Zf ~yes", please specify the nature of the displacement and describe plans for relocation, if any: This item is not applicable. Em OB3ECTI~ES TO BE ACHZEVE~ Please list reasonable objectives to be a~omolished bv the activity (e.g. souare feet of s_na_ce, number and tvoe of eouioment, linear feet of water main. etc). Prormsed Oblecl:lves Purchase and .renovate 26,235 square foo~ building (Phase !, ]:! & m) Unit of M~e,Jremerll; Bank notes, deeds, paid invoices !ns'tall Ext~sion Une #1 (Phase Create 10 jobs !ns~all F_x~rusion Line #2 (Phase V) Create 10 jobs Ongoing Training * = Worldorce Development Board Canceled Checks, paid Invoices Payroll reports~ WDB* Notifications Canceled Checks, Paid !nvoices Payroll reports~ WDB* Notifications Written test results, Certificates of Completion, number enrolled 1771 2002 CDBG Economic Development Program Application LIN~=F£D ~ORWARD. Jnc. & OF Fluid Sy$tems~ Jnc. ExhJbi~ ~ : CDBG Application 3OB CREATZON/RETENTZON AND TRAZNZNC Total number of FTE jobs to be ~ from funding of this activity: (NOTE ];: 3obs must be permanent and created by you the applicant. to complete the addvtty.) 10 Do not count construction jol~ (NOTE 2:]7 activity is funded via other County or HUD programs which also require Job creation/retention, the Jobs created/retained for those programs must be addlUonal to the ones required under this program.) Total number of FTE Jobs to be ~ from funding of this actJvfty: 0 (NOTE: .]ob retention means that permanent Jobs would actually be lost if CDBG funds were not awarded. DocumentaUon must be provided.) Number of. low- and rrxxJerate-income jobs to be creal~d[retained: 7 For actJviUes located within an entitlement munidpality (West Palm.Beach, Boca Raton, Delray Beach and Boynton Beach), please indicate what percentage of the Jobs creat~l will be made_ a~railable to Wl~,,r~? fr?.m..the Pal.m..B~ach. County entltiernent Jurisdiction: · 3~. % · , me ncav~ty pmv~ae Jobs pmdominnnlJyfor Iow-skilled, Iow/~l~_income persons, where ~ business ncjn~s 'to provid~ d~r Opporbmities roi' pmmo~on? yes X No Pl~s~ complete ~ table 'below for Jobs to be cr~~i~. Zndic~l~ (C)' for crent~ nnd (R) for retained. (USe edditionni sheel:s if nec~s.~ry.) 1772 2002 CDB~ Eco.n. omic Development Program Application ~z~Jbj~ ~ ~ CDBG A#pIJc~Uo# Please describe the trainir~ OD~ortunities that are available or will be available to emDlovc-~, an~l indi~Le the positions to be filled by Demons undemoino such training_. UF and UFFS have an intensive and comprehensive training program for all ex~Sting and new manufacturing-related employees. The training curriculum Includes training, testing and required certification in the following 'areas: 1. Basics of Rubber, 2. Basics of Rubber Hose Extrusion, 3. Product Packaging, ~t. Safety and 5. Quality Assurar~e. Each section is mandatory and taught by the relevant staff member over a. 6-10 month .period. Zn addition .to the~mand~tory training-referenced above, appropriate staff members are required to be certified in Q$9000, a :[5-step process with a total project time of ~-5 months. The Training Outline for the initial training curriculum and QS90OO are provided in Exhibit 9: Organizational Chart and Training Outline. LAND ACOU%STI'ZON. NEW CONSTRUC1TON. REHAB%LlI'AT~Qfl This item is not applicable because Phases %-ZV precede the Phase V Project Activity - however, documentation of previous phases is provided in Exhibit 8: Site %nformation & Schedule/Documentation of Previous Phases. ADD!icants whose activities indude, land acouisition, with or without demolition. cor,.~uction must comal_,~;e__ this s,-~or~: ]:s the parcel of land vacant? Yes __ No If "no'~, indicate existing use of the site: Does the parcel of land require purchase of fill material? If''yes'; please explain: ._ Pro]oct and/or new N/A X Yes No N/A X Are engineedng/archit~:tural drawings and development permits Yes No N/A X (other than building permits) in place? Has an appraisal been conducted? Yes .. No .. N/A X Tf"yes", please insert figure and attach the report: 1774 Activities involvina ao3uisiMon, mhabllit3Mon, or demolition of 5buctum(s3. please comDlete; This activity is a previous phase of the overall project, no CDBG funds will be requested or used for this purpose. ZnformaUOn provided for better understanding of overall project. 2002 CDB~ Economic Development Program Application bf LIN~TED FORffIARD~ J#¢. & LIF Fluid Sy$~m~ Jnc, ~xhJbJt l: CDB~ ApplJcatJo# Is the ~='~re vacant? Cur~enUy occupied by UF Fluid Yes No X N[^_ Sys~ems~ If"no'; indicate e~i~ng ~e of ~re: Building was pm~hased on Octobe~ 31, 2001. Zt was vacant a~ the Ume o~ purchase and was designed ~o~ rnanu~a~c~ring and/or warehouse/office uses. Year structure was built: 1998 Describe the condition of the building (strucb~m, materials, appliances, air conditioning, well/septic tanks, and other relevant information): The buildin9 was in 9ood condition bUt needed to be modified to accommodaba the manufacturin9 and office requirements of United Forward for their automotive hose manufacturing use. Has an appraisal been conducted? Yes X No N/A Zf'`yes'; please Insert figure and attach the report: $2~000~000 Available upon request. e. Am engineerlng/architectural drawings and development permits Yes No X N/A (other than building permit~) in place? Drawings yes, permlt~ are currently under review by the City of 3. Activities defined in ~1" and "2" above, ol~a~e a. Has site control been obtained? Yes X No N/A If "yes", docurnentaUon (e.g., sales contract, deed, etc.) showing site control must be attached. (See Exhibit 8) b. Is them a lien on ~he property? Yes X No N/A c. Are public water and sewer available? Water yes~ Sewer no Yes No N/A d. Am taxes on the property current? Yes ~( No N/A e. Is your agency exempt from paying real estate taxes? Yes No X N/A f. Is the property currently mortgaged? Advantage Bank Yes X No N/A g. Does the activity comply with zonlng/land use Yes X No N/A designations? NOTE: Activities located in munidpalities must attach a letter from the Planning/Zoning Department of the munidpallty documenting compliance with zoning and land use designations. L[CENCES AND t4A~NTENANCE Zs a license (other than an occupational license) required to operate your business? Yes No X If yes, existing businesses should attach a copy of the current license; new businesses should indicate the timetable to acquire a license. Copies of occupational ~icenses are provided in Exhibit 10: Licenses & Corporate Znformation. Please explain the steps to be taken to ensure the maintenance of plant and equipment funded with CDBG funds. (A letter cerfifyin0 the o~anization's commitment to maintenance must be attached3. Please see' Exhibit 7: I~laintenance/Equlpment/]ob CertiflcaUon Letter and ExisUng & Development Regions 3ob Schedules. 1775 2002 CD~ Econom/c Development Program Application ONXTBD FORfffARD~ Xn¢.& UF Fluid System~ Xnc, ExhJbj~ ~ : COBG Application zzz. The followina __dooJmentaUon must be submi _fred_ with Re applicon/on as it aDDIies to your aoency, iden~i"y the type oF agency requesting funding. Please County DeDartment~: Explain how the activity(s) will assist in meeting Palm Beach County Comprehensive Plan and local economic development plans: firm Ob~r Aoendes or O~anization.~ Sole Proprietorship Pari~ership Incorporated Business Florida C Corporations Community Redevelopment Agency (CRA) The above listed enUties must submit the following, where applicable: a. b. C. d. By-Laws and Arfldes of Incorporation. Exhibit 10: Licenses & Corp. ];nfo Copy of Iic~nse(s) needed to operate. Exhibit 10: Licenses & Corp. Info FlcflUous name registration. N/A Business tax returns for two latest years (if a new business, personal tax returns for ~hree years). SEPARATE ENVELOPE Copy of resolution or minutes of ~he meeting ~om the goveming body, authorizing submission .of applicaUon and showing compliance wi~h local plans (CRAs and non-profits only). Please see the cover letter (in the very front of this application booklet) from the City of Boynl~n Beach- that explains that the project was approved on 3uly 2, 2002 and that minutes will be forwarded Ix) HCD Jmmedlabaly upon receiPt. REOUZRED ATTACHMENTS See the following page for a list of attschments. 1776 2002 CDBG Economic Development Program Application 9 Exldbit .1: CDBG Application CHECKLIST OF REOUIRED DOCUMENTATION (Please check which documents have been included with the application. [f not applicable to your request, write N/A). .~. All Aoolicants 1 An itemized overall project budget. 2 2 An itemized budget for use of CDBG funds. 2 3 A business plan with five-year projecUons (see attached guidelines). 3 4 Firm evidence of leveraging. 4 5 Evidence of availability of funds to cover project costs. See also Exhibit 8: 4 Documentation of Previous Phases, 6 Resume(s) of key personnel to substanUate capability to operate the business. 5 7 A street map showing location of activity. 6' 8 A plat map (showing block and lot numbers) showing IocaUon of activity. A copy of 6 the site survey is also provided in this exhibit. ' 9 A letter certifying your commitment to maintenance, of plant and/or equipment and 7 the job creation/retention requirement. Activities located within the Cities of West Palm Beach. Boca Raton, Delrav Beach. Or A letter certifying that more than 30% of the jobs created or retained will be held by, or available to, persons residing outside these municipalities. 1! A letter from the municipality committing to its provision of cash matching funds equal to the CDBG funds requested. Evidence of site control, e.g., sales contract, deed, etc. (activities that include land accluisition, new construction, rehabilitation or demolition of structures). 13 Appraisal report, if available (activities that involve acquisition of real property). 14 A letter documenting compliance with zoning and land use (start-up businesses). Copy of license(s) needed to operate other than an occupational license. Oocupational Licenses are provided here. By-laws and Articles of Incorporation under state or local law. [7 Evidence of non-profit status (non-profits). 18 Partnership Agreement(s) ,_ A copy of resolution, minutes of meeting of governing body, or other documentation authorizing submission of application (municipalities and CRAs). 20 Business tax returns for past two years or audit report and/or audited financial statement from last year of operation (existing businesses). 2~. Personal tax returns for past three years (start-up businesses) S:~0O2..03\Cl:)6GVq:~p/icaflon~-conomlc Developrnent~ppllcaflon02-O3WORD.wpd 1777 N/A N/A N/A ~0 10 N/A N/A See cover letter SEPARATE ENVELOPE N/A 2002 CDBE Econom/c Development Program ~Oplicab'on 10 Unfte~ ~orward, !n& & IJ~ FluJcf ~),stems. B~I~il;i~ 2: Bu#get !n~ormaUon PRO3ECT BUDGET PHASE ! Sources Equity- United Forward Palm Beach National Bank Mortgage To~al Sources PHASE Z Uses Purchase Building Total Uses EXPENDI'I'URES Sss5,ooo $~5,000 $1,500,000 EXPENDITURES $i,500,000 DOCUHENTAI'J:ON PERCENTAGE Deed 9.84 Hortgage refinanced by AdVantage Bank on June 20, 2002 DOCUMENTA'I~ON PHASE m Hortgage Loan Total Sources Phase ZZ.t Uses Renovation Utility Unes - Gas Autoclaves - High Temperature vulcanisers to cure products Soft Costs/ConUngency Total Uses ESTI~TED COST' $i,455,000 $1,455,000 ESTJ;MATED COST $1,080,000 $8%591 $218,000 $72,409 ZNFORMATION . Advantage Bank Note ZNFORMA1TON Armstrong Service, Znc. Florida Public Uflflties CorporaUon WSF ~ndustries, ~nc. PHASE 1¥ So. urces Loan for purchase Development Regions Grant Request = city $25,000 + County $50,000 Total Sources PHASE I'V Uses Purchase first extrusion line Total Uses ESTZMATED COST $1,125,000 $75,000 $1,200,000 ESTIMATED COST 1,200,000 $1,200,000 ZNFORNAT'ZON Flsher Enterprises, LLC Pending, well ranked and recommended to the OEDP on June 21, 2002. To be presented to the BCC on 9-10-02. ZNFORMATZON Davis Sl~ndard Purchase Order UF 020304 1778 16.76 26.60 26.60 PERCENTAGE- 25.80 25.80 19.15 1.50 3.87 1.28 25.80 PERCENTAGE 19.95 1.33 21.28 21.28' 21.28 2002 C~B<; Econom/c ,Development Program ApplicaUon Unit~l ~rw~r~, Jn~ & IJF Fluid ~ems, Jn~ ~ibit 2: Buo~et.rnfarmnUon PHASE V Sources City $50,000 + County $50,000 Loan for Purchase Total Source~ PHA~E V Use~ Purchase second extrusion line Total Uses ESTIMATED COST $100,000 $1,384,146 $1~184,146 $1,484,1q6 ZNFORMAI'ZON Final ApplicaUon due to Ob/of Boynton Beach 7/15/02 and to Palm Beach County HCD 7/26/02 Pending - in process Davis Standard Proposal #02-0ar-221 PERCE~AGE 1.~ 24.55 26.32 26.32 26.32 TOTAL PRCUECT BUDGET (Phases $5,639,146 100 1779 .. 20~2 c'*'DB~ Economic Development Pro~ram Appilcetto# Page 10 Proposal # 02-04-221 PRICE SUMMARy .... !TEM DESCRIPTION I Core Tubing Extruder Delete 2 Ta~,e.off Conveyor 3 Core Tubing Die 4 TffV Extruder Delete DIT $ Pellet Dryer and Vacuum Loader $ THV Croeahead 7 A Jr Table 8 Tie I~yar Extruder Delete DIT 9 Tie Layer Croseheed t 0 T/e L~yer L~sor Gauge 1 t Cooling Tank RefrigeralJon t2 B~lt Puller t 3 IR t4 Dancer wi~h U-shaped p~oduGt roller eupport 15 Knitter and Belt Puller Delete 8m$ff Head Add Large Head Add,/ib Cranee and Tracera ...... . . 15 Cover Extruder Oelote DIT 17 Cover Cro~$haad 18 Belt Puller 19 Prfrr~r 20 IR Heater 21 X.Ray Gauge 2;2 Cooling Tank RafrigeratJon 1780 · Wednesday, June 26, 2002.max April 16. 20O2 DISC, $4,g43 ($~2~) ~S,421 $20,322 $148,65~ ($t,238) $20.448 $~5,823 $21,387 $~24~ $~e~3 $~,as4 ($12~oa) $4,~0 $145,361 $J4,268 ~27,8G~ ~,439 $21,~7 sr, r~3 Page Proposal # 02-04-221 April 16, 2002 23 Belt Puller 24 Cutter/Conveyor 25 Pre-Cure Oven Extend Length by 8 feet Expand belt width to 3~1 I~tches Cooling Tank Chiller 2; ~/stem Drive Control Motor, Drive, Controls for Puller before Cutter 27 $¥$ Engineering, Installation, and Start-up Add Installation pullerlcutt~r, oven, cbollng Add starf-up pulJerlcutter, oven 28 Vacuum Pumps for F. xtrudara 29 8trip Guides with Produ_~ Loss Ala..rms . TOTAL. PRICE ITEMS ¶ - 29: $14,247 $47,773 $$,475 $33,245 $8,687 $$,887 $6,980 8t2,67~ $1,484,446 20% with Purchase Order. 40% on expiry of half- the delivery time 30% Prior to Shipment Balance after successful Start-Up, not to exceed 60 Days 5e,43 't'h~r.J,~ar I:)aby Rd.n. Wl'dtsett, Id~ 2737?' TM: {3-~8) egl.el.4( · Fax (336) IGS434,(. t-.m~il=- grl~.dlVll-I tindard. ~om 1781 Wednesday, June 26, 2002 {2).max DEVELOPMENT REGIONS GRANT PROGRAN[ PALM BEACH COUN'TY, FLORIDA APPLICATION FORM Important Instructions: Before deciding to fill ou: this Application Form, thoroagkly read th: ELIQIBrLIT¥ ~ APPLICATION REOUIREM]ENT$ document for th/s program. Please refer to the appropriate Application Requ/rement Checklist when cornplet/ng this form. . · Only one .application .can b.¢ utilized for omc business .or public improvement pro~eCt: · . Type or pnnt the reqmred information. Do not leave spaces blank. Put N/A if appropriate. In the event that the Palm Beach County Economic Development Office (EDO) requests add/tionaI/nformat/on, it must be submitted in a timely menner. The processing and approval of projects may take up to 12+ we~ks'f' I. APPLICATION DATE: 01/30/03 II..PRO .J'~CT IDE,~FrIF!~ Bus/ness Project: Innovative Window Concepts L.L.C. or Publ/c Improvement Project: (name of business or property om,r) (name of project for parking,.inf~-as~cture, lighting, beautification, facade imCmvements etc.) APPLICANT IN'FORMATION (local government or nonprofit; not business or owner) Contact Person: Mailing Address: Applicant Name: Innovative Window Concepts Gary Orman / Doni/I Kenney 507 Industrial Way Suite A Boynton Bch., Florida 33426 (561) 737-4337 OR Telephone: Tide: Managing Members Fax: (561) 736-1973 BUSIArESS LOCATED ~-N UNINCO~ORATED PALM BEACH COUNTY. 1782 K~v. 4-02-2002 Page 1 of 7 TV'. BUSINESS PROJECT INFORMATION ONLY' A. Business Name: Innovative Window Concepts L.L.C. Business Federal ID #: 36-4518690 FOR EDO use ONLY Project loca~on is/n an area cla~si/ied as: ]~[ Core [~[ Transitional /~ Marginal C~ Out~ide the Dev. Region Business or Project Location Address: 507 Industrial Way Suite A Boynton Beach, Florida 33426 B. Business Owner Name: Gary Orman, Donill Kenney and Pablo Ruiz Contact Person: Donill Kenney Title: Mailing Address: 1736 N Lakeside Drive Lake Worth, Florida 33460 Telephone: (561) 655-3344 C. IfLeasin_~: Property Owner Name: Managing Member/C.F.O. Fax: (561)736-1973 North Lakeside Realty Nazne: Kristine Brown Ma/ling Address: 1237 Roebuck Court West Palm Beach, Florida 33401 Telephone: (561) 820-0090 Fax: (561) 659-6222 Copy of L~ase Required: Proposed or Lease Enclosed Executed Kev. 4-02-2002 1783 Page 2 of 7 D. JOB INFORMAT/0N (full time & equivalent) Jobs on Current Payroll Identify below the exis~ng payroll employees with their respect/ye job aries, # hours schedu/ed per week, and hourly wage. Do not include the business owner and property owner in th/s list. Extra pages may be used if necessary or attach a payroll document to the application· FOR: BDO USE ONLY requ/r~nent: ~ Y~s ~ No ExCeeds minimum job requ/rernent: ~ Yes O No No. of Employees lob Title · Hours (per week) _Hourly Wag~ 1 President \ CEO 40 $35.00 1 V~ce President \ CO0 40 $30.00 Sobs to be Created and/or Retained ' The Development R.eg/ons Grant Program requ/res the creation/retention of one (I) full-time equivalent job pm' $10,000 in county funds received, which is equivalent to 2,080 hours per year. Therefore, the calculation will be as follows: Tota/number of hours scheduled per week x 52 week~ = No. of ful]-t/medequi~/alentjob.q 2,080 hours Full T/me Hours 1qo. of Employec~ or Equiv. ~ob TitAe (per week) ~ 1 Full Time Secretary 40 ,$8:50 1 Full Time Saw Man 40 $8.50 3 Full Time Team Leader 40 $7.50' 7 Fuji Time Assemblers 40 $6.50 'l Sul :Ume jobs total: 12 Equ/valent jobs total: Full-t/me & Equi~,alent total: 12 Rev. 4-02-2002 1784 Page 3 of 7 V. PUBLIC IMPROVEMENT PROJECT 0~LY: Project Location: N/A Contact Person: Title: Mailing Address: Telephone: Fax: Identify businesses and/or adjacent property owners to benefit fi.om improvements: 1.." Identify nUmber ofbusinesses/Properiy owner 2. Name of business/property owner 3. Business owner/property owner 4. Addr=ss -.. 5. County funds to be used 6. City/CRA funds to be used 7. Business .funds to be u~cd 8. # of full-time equivalent jobs existing/retaining 9. # of full time equivalent jobs to be created 10. Inclividusd improvements to be made 1785 Kev. 4-02-2002 Page 4 of 7 VI. DESCRIPTION OFPROJ'EC~_ /ncl.ude.a project=d t/me-flame of the entire project, includ/ng phases (fl any). NeTM Business Start Up innovative Window Concepts was started on January 10, 2003. We will be in production with our Single Hung and Pfcture Window by June 1, 2003 followed by the Horizontal Roller on July 1, 2003. We are currently procurring all of the Machinery and Equipment necessary for the start date and will be purchasing additional Machinery as we roll out our other product lines. January 10 thru February 28 Research and Development of Single Hung, Picture Window and Horizontal Roller. Procure Machinery and Equipment f~r SH & PW · March 1 thru Apdl' 30 · .. · Prod'u~t .'TeSting and cert~catfon~ Purchase inventory matrerial~'* " interview and hire Employees. Set up Policies and Procedures May 1 thru May 31 Factory set up and Assembly Line implementation inc'iuding all electrical work and Office build out June 1 Start of production Proposed StarliaE Date: January 10, 2003 · Proposed Ending Date:.· December 2004 ... Full line of products Single Hung, Picture Window, Horizontal Roller French Door and CaSement Window 1786 l~v. 4-024002 Page 5 of 7 VII. ~ROPOSED PRO3]iiCT BUDGET Itemize anticipated expenses For this project. Complete the items that apply to your project. Attach details o£each ftem and supportive information. Include labor and material costs in th/s estirnar~. Funding Usc Cost Funding Source #1 County #2 City/CRAJ #3 Grantee Non-Profit Land Acquisition Infrastructure (Water/Sewer) Consiruct of New Build Expand of Existing Building Facade Changes / Renovation EnsinC¢iing" '"'-."'. " " .'- '. .... Architectural Design Property Survey/rig - Soil Test L-npact Fees Landscaping / Lighting Public hrrprov~ments ~r [~pemzYl~tedo~ Renovation $364,218.00 $S0,000,00 $28,000.00 $289.21'6.00 TOTA-L $364~218.00 $~0~000.00 $28~000.00 ~289~216.00 PRO~ECT ANTICIPATED ]~rND]2qG (refer to last three columns in above table) County funds $5o,0oo.oo #2 City/CRA/CDC ftmds $25,000.00 #3 Grantee's liquid cash bank loan other ~rant other source Clas~ column in table) TOTAL $289,216.00 $364,216.00 FOR EDO USE ONLY M/n/mum cash match requirement status: Met or Hot. l~let County Grant Local Grantee ]~equ~st Entity Amount Ma~ch S0% Status ATTACH QUALI'FLED ESTIMATES TO APPLICATION. Rev. 4-02-2002 1787 Page 6 of 7 . _~Bffsine~ i~~ssP~anownerignaturesignature For additional information conta¢~t: PALM BEACH COUNTY ECONOMIC DEVELOPMENT OFFICE 301 N. OLive Avenue, 10~ Floor, West Palm Beach, FL 33401 P.O. Box 1989, West Palm Beach, FL 33402-1989 (561) 355-3524 Fax: (56I) 355-/5017 Pamela Nolan, Economic Development Specialist pnolan~co.palm-beach.fi:us (561) 3-55-6835 Fax: (561) 355-6017 FoREDO USE ONLY Application reviewed by: Name and Title Name and Title Date Date Applicat/on accepted: Yes /~ No Lfnot accepted, explain reasons: H:\WPDATAXDRo'~DR6applic_rev0~_02..02.wpd Rev. 4-02-2002 1788 Page 7 of 7 DEYELOPMENT REGIONS GR~T ?ROGI~M PALM BEACH CoUNTy, FLORIDA APPLICATION FORM Important Instructions: Before deciding to fill out this Application Form, thoroughly read the ELIGIBILITY & APPLICATION tLEQUIREMENTS document for this program. Please refer to the appropriate Application Requirement Checklist when completing this form. Only one' application can be utilized for one business or public impro.vement project.' . Type or print the required information. Do not leave spaces blank. Put N/A ifappropr/ate. In the event that the Palm Beach County Economic Development Office (EDO) requests additional information, it must be submitted in a timely manner. The processing and approval of projects may take up to 12+ weeks. I. APPLICATION DATE: February 3, II. PROJECT IDENTIFICATION Business Project: Boynton Seafood 2003 or Public Improvement Project: (name of business or property oWner) (name of project for parking, infrastructure, lighting, beautification, facade improvements, etc.) III. APPLICANT INFORMATION Applicant Name: Contact Person: Mailing Address: (local government or nonprofit; not business or owner) Title: Telephone: Fax: OR 1789 BUSINESS LOCATED IN UNINCORPORATED PALM BEACH COUNTY. Rev. 4-02-2002 Page 1 of 7 /'V. BUSIN SS PROJECT INFORMATION O LY A. Business Name: Boynton Seafood Business Federal [D #: 65-0572486 FOR EDO UsE ONLY Project location ~s in an area classified as: ~l Core ~ Transitional ~.I Marginal ~d Outside the Dev. Region Busifless or Project Location Address: B. Business OwnerName: 1022 N. Federal Highway Boynton Beach, Florida 33435 Scott and Mary Jo Bills Contact Person: Mary Jo Bills NlaiIing Address: 720 N. E. 8th Title: General Manager Avenue, Boynton Beach, 33435 Telephone: 561-735-4775 Fax: 561-735' 4460 C. If Leasin,,: Name: Property Owner Name: n/a Mai/lng Address: Telephone: Copy of Lease Required: Proposed or Lease Enclosed Executed 4-02-2002 1790 Page 2 of 7 · D. ,/OB IINFOR1VIATION (full time & equivalent) Jobs on Current Payroll rdentify below the existing payroll employees with their respect/ye job titles, # hours scheduled per week, and hourly wage. Do not inClude the business owner and property owner in this list. Extra pages may be used if necessary or attach a payroll document to the application. Fo. EDO use ONLY Meets m/n/mum job requirement: ~ Yes C! No Exceeds m/nimum job requirement: ~! Yes ~ No No. of Employees Job Title ' Hours (per week) Hourly W'aze 4 fish cutters 40 12'.00 I fish cutter 25 10.00 1 cashier 40 1 0.00 1 cashier 25 10.00 1 retail manager 40 12.00 Jfbs to be Created and/or Retained The Development Regions Grant Program. requires the creation/retention--of one (1)' full-time equivalentjob per $I0,000 in county funds received, which is equivalent to 2,080 hours per year. Therefore, the c'alculation ,,vill be as follows: ~ .TotaI number &hours scheduled per week x 52 wee~ = No. of full-time/equivalent jobs 2,080 hours . Full Time Hours No. of Employees ~ /ob Title ef~ 1 E Wholesale Sal~s 40 ~ 1 F Secretary 40 1 0.00 1 E Wholesale Labor 40 10.00 1 F Cook 40 1 2.00 I F Prep 40 8.0 0 '1 .......... F ...... Ga ~hi-er _._ 40 1 0.00 . 1 F Counter help 40 8~q70 · FulI-tLmejobs total: 5 _ Equivalent jobs total: 2 Full-time & Equivalent total: 7_/_. · o° i791 Rev. 44)2-2002 Page 3 of 7 V. PUBLIC IMPROVEMENT PROJECT ONLY. Project Location: Contact Person: 7022 N. Federal Highway Boynton Beach, Florida 33435 Mary Jo Bills Title: Manager Marling Address: Telephone: 720 N. E. 8th Avenue Boynton Beach, Florida 33435 561 -735-4775 Fax: 561 -735-4460 Identify businesses and/or adjacent property owners to ben,fit from improvements: '.. 1. Identify number of businesses/Property Owher 2. Name of business/property owner 3. Business owner/property owner 4. Address 5.. County funds to be used 6. City/CRA funds to be used 7. Business 'funds to be used 8. # of full-time equivalent jobs existin~retaining 9. # of full t/me equivalent jobs to be created 10. Indiv~duaI improvements to be'made 1792 Rev. 4=02-2002 Page 4 of 7 VI. DE$CI:UpTION OF PROJECT ~clude a pr~ected t/me-flame of the entire pr~ect, including ph~es (ifan~. Boynton Seafood is applying for a Development Regions Grant to expand the existing business. It is currently a full line seafood market. Boynton Seafood is unique in that it is a Multi-cultural fish market. By incorporating a complete kitchen in the existing first floor, Boynton Seafood expects to produce approximately 75 plates per day. The menu would include many of the local,fish that are caught daily, steamed Blue Crabs and a Seafood Chowder or soup. The s.gcond part of the expansion plan involves remodeling the second floor space into an office to accomodate a growing Wholesale fish business. This aspect of.the seafood industry involes the packing and shipping of larger quantities of fish to the.Fulton Fish Market in New York City, requiring the. need for a location to employ people-to mQnitor and service the flucuation of the daily price and product changes involved · in the worldwide seafood market. · By accomplishing the goals stated above, Boynt0~=n Seafood expects to create five full time jobs and two equivalent positions.~ The estimated cost of this project is $75,000. and construction is expected to take approximately 90 days from the date the necessary Permits are issued. Proposed Starting Date: June 1, 2003 Proposed Ending Date: September 1, 2003 1793 Rev. 4-02-2002 Page 5 of 7 PROPOSED PROJECT BUDGET Itemize anticipated expenses for th/s project. Complete the items that apply to your project. Attach details of each item and supportive informat/on./n¢lude labor and material costs in th/s estimate. Ezpense Type Cost '----'-- Fund Source #1 County #2 City~CPA~ #3 Grantee Non-Profit Land Acquisit/on Construct/on of N'ew Buildin~ Expansion of Ex/stint Build/ng 60.000 15,000 45,000 .. Fa~de Changes / Renovation Eng/needn~ Arch/t~i-~a/Design 1,000 1.000 Progeny Su-,~y/ng Soil Test Impact Fees Mach/ner,/and Equipment i$.000 $,000 i0,000 _ Other (Spec/fy) TOTAL $76,000 $20.000 $I0,000 $46,000 PROJECT ANTICIPATED FUNDINC (re/er to last three columns in above table) #I County funds #2 City/C, RA/CDC tads #3 Grantee's liquid cash bank loan other grant other source (last column in table) TOTAL $20,000 $10,000 $46,000 $76,000 For EDO use only' Minimum cash match requ/~ment status: Met or Not Met County Grant [Local Grantee Request Entity Amount Match 50% ,Status ' "t ATTACH UALIFIED ESTIi~ATES TO APPLICATION 1794 Rev 4-02-2002 Page 6 of'7 Avvhcant $~gnature B usines~,.j~fuer Signature Date ~-' For additional information contact: PALM BEACH COUNTY ECONOMIC DEVELOPMENT OFFICE 301 N. Olive Avenue, l0ch Floor, West Palm Beach, FL 33401 P.O. Box 1989, West Palm Beach, FL 33402-1989 (561) 355-3624 Fax: (561) 355-6017 Attn: Pamela Nolan, Economic Develt~pment Specialist pnolan~co.palm-beach.fl.us (561) 355-6835 Fax: (561) 355-6017 Fo~ EDO us£ ONLY Application reviewed by: Name and Title Name and Title Date D at e Application accepted: Yes ~ No If not accepted, explain reasons: H:\WPD ATA~DR6kDR6applic_rev04_02_02.wpd 1795 Kev. 4-02-2002 Page 7 of 7 CITY OF B 0 YN TON BEA CH GRANT AGREEMENT 1796 THIS AGREEMENT is made this ~ day of , by and between the CITY OF BOYNTON BEACH, a public body corporate 'and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, hereinafter referred to as "CITY OF BOYNTON BEACH," and , hereinafter referred to as "GRANTEE." WITNESSETH: WHEREAS, it is the policy of the CITY OF BOYNTON BEACH to stimulate and encourage economic growth within the CITY OF BOYNTON BEACH's redevelopment area, pursuant to carrying out its purposes as provided for under Chapter 163, Florida Statutes; and WHEREAS, the CITY OF BOYNTON BEACH has been awarded a grant known as the Palm Beach County Development Regions Core Grant Agreement dated September 10, 2002; and WHEREAS, pursuant to the administration of said Palm Beach County Development Regions Competitive Grant Agreement, the CITY OF BOYNTON BEACH wishes to provide assistance and support for the development and revitalization of the GRANTEE's business and properties within the CITY OF BOYNTON BEACH's redevelopment area; and WHEREAS, the CITY OF BOYNTON BEACH has determined that it is in the public's best interest and pursuant to carrying out its purposes, pursuant to the CITY OF BOYNTON BEACH's Community Redevelo. pment Plan to award a grant to the GRANTEE pursuant to the terms of this Agreement. WHEREAS, in order to secure the public's interest in the grantee's fulfillment of its obligationS, it is the intent of the grantor to obtain a security interest in the real property of the grantee. NOW, THEREFORE, in consideration of the premises and mutual covenants hereinafter contained, the parties hereby agree as follows: I. GRANTEE'S PERFORMANCE OBLIGATIONS GRANTEE agrees that it will carry out the redevelopment *project and activities as more specifically set forth in Exhibit "A" to this Agreement, attached hereto and incorporated herein by reference. GRANTEE agrees that the redevelopment activities contemplated by this Agreement will be completed in accordance with the terms of this Agreement. GRANTEE agrees that it is solely liable to the CITY OF BOYNTON BEACH for performance under this Agreement, and that, in the event of default, GRANTEE will, as more specifically set forth herein, refund to the CITY OF BOYNTON BEACH monies paid pursuant to this Agreement. GRANTEE hereby certifies that it is authorized by law to be so bound. GRANTEE hereby certifies that it has or will retain adequate staff to oversee execution Of its performance obligations under this Agreement, and that execution of each of these performance obligations is consistent with GRANTEE's mission. As a condition to retaining the maximum of Twenty Five thousand dollars ($25,000) from the CITY OF BOYNTON BEACH, the GRANTEE shall cause, as a direct result of the activities set forth in Exhibit "A" to this Agreement, the creation of at least Ten (10) full time equivalent jobs (1 FTE = 2,080 hours per year) in Palm Beach County within twelve months (12) of completion of the project as set forth in Exhibit "A". GRANTEE shall be entitled to retain such lesser amounts as may be equal to the grant award per job, multiplied by the number of positions created pursuant to this Agreement. In accordance with the provisions of paragraph I. E. hereinbelow, the number, dates and salaries of all hires in Palm Beach County must be substantiated by GRANTEE, to the CITY OF BOYNTON BEACH's satisfaction, within fourteen (14) months of completion of the project as set forth in Exhibit "A". For the purposes of this Agreement, the term salary means wages, gratuities, salaries, commissions, bonuses, drawing accounts (against future earnings), prizes and awards (if given by an employer for the status of employment), vacation pay, sick pay, and other payments consistent with the Florida Department of Labor and Employment Security definitions, paid to employees. As a further condition to retaining all grant amounts received from the CITY OF BOYNTON BEACH, GRANTEE shall cause to be paid an average salary equal to or greater than the minimum wage as established by the Department of Labor. As a further condition to retaining any Grant funds from the CITY OF BOYNTON BEACH, the GRANTEE shall provide to the CITY OF BOYNTON BEACH written verification, satisfactory to the CITY OF BOYNTON BEACH in its sole discretion, of compliance by GRANTEE with all agreed upon performance standards as set forth in paragraphs I. C. and I. D. hereinabove. GRANTEE may provide to the CITY OF BOYNTON BEACH this verification once all applicable portions of the performance standards set forth in paragraphs I. C. and I. D. of this Agreement have been met; provided, however, that GRANTEE shall provide this verification on or before the expiration of the fourteenth (14) calendar month following completion of the project as set forth in Exhibit "A". Within ninety (90) days from the date this verification is submitted to the CITY OF BOYNTON BEACH, GRANTEE agrees to refund to the CITY OF BOYNTON BEACH Two Thousand nine hundred eighty-five and no/dollars ($2,985.00) for each position not created until the expiration of the twelfth (12) month following completion of the project as set forth in Exhibit "A". As a further condition of this grant, the Grantee hereby agrees to execute a note in favor of the City of Boynton Beach in an amount equal to the grant (County plus CITY OF BOYNTON BEACH match) and additionally secure such obligations under the note by executing and delivering to the CITY OF BOYNTON BEACH a mortgage encumbering Grantee's real property as described in Exhibit C. Such mortgage shall be junior only to those permitted senior encumbrances listed in Exhibit C. The terms of the note shall only be due and payable in the event of a default of the Grantee's obligation under the Grant agreement and in the event no default shall have occurred, the Grantee shall have fully performed under the grant conditions, the note and mortgage shall be extinguished and satisfied. 1797 Il. PAYMENT PROCEDURES, CONDITIONS The Grant funds available under this Agreement will be provided only for reimbursement of expenses related directly to the Scope of Work as set forth on Exhibit "A", which is attached hereto and made a part hereof. To be eligible for reimbursement, such expenses must be: 1798 Co Do 1. Incurred on or after July 27, 1999 Aeneid (Retro date) 2. Incurred no later than November 2, 2001. (2 years from contract date). CITY OF BOYNTON BEACH agrees, pursuant to the terms of this Agreement, to make payments to the GRANTEE for all eligible types of expenditures as set forth in Exhibit "B" to this Agreement, attached hereto and made a part hereof. Requests by GRANTEE for payment shall be accompanied by proper documentation. For the purposes ofthis paragraph, originals of invoices, receipts, or other evidence of indebtedness shall be considered proper documentation. When odginal documentation cannot be presented, the GRANTEE must adequately justify their absence, in wdting, and furnish copies thereof. In the case of invoices that have not first been paid by GRANTEE, GRANTEE shall certify to the CITY OF BOYNTON BEACH that each invoice presented for payment relates directly to work satisfactorily completed as contemplated by this Agreement. Requests for payment for costs incurred after the effective date of this Agreement shall be submitted to the CITY OF BOYNTON BEACH no later than forty-five (45) days after the date the indebtedness was incurred. Requests for payment for costs incurred prior to the effective 'db. te of this Agreement shall be submitted to the CITY OF BOYNTON BEACH no later than fifteen (15) days after the effective date of this Agreement. Requests for payment shall not be honored if received by the CITY OF BOYNTON BEACH later than the expiration of the twenty fifth (25) calendar month following the effective date of this Agreement. If GRANTEE fails to submit any requests for payment by the expiration of the twenty fifth (25) calendar month following the effective date of this Agreement, then this Agreement shall automatically terminate, thereby relieving the parties hereto of any obligations hereunder. If the GRANTEE fails to comply with any of the provisions of this Agreement, the CITY OF BOYNTON BEACH may withhold, temporarily or permanently, all, or any, unpaid portion of the funds upon giving written notice to the GRANTEE, and/or terminate this Agreement and the CITY OF BOYNTON BEACH shall have no further funding obligation to the GRANTEE under this Agreement. The GRANTEE shall repay the CITY OF BOYNTON BEACH for all unauthorized, illegal or unlawful expenditures of funds, including unlawful and/or unauthorized expenditures discovered after the expiration of this Agreement. The GRANTEE shall also be liable to reimburse the CITY OF BOYNTON BEACH for any lost or stolen funds. In the event the GRANTEE ceases to exist, or ceases or suspends its operation for any reason, any remaining unpaid portion of this Agreement shall be retained by the CITY OF BOYNTON BEACH and the CITY OF BOYNTON BEACH shall have no further funding obligation to GRANTEE with regard to those unpaid funds. The determination that the GRANTEE has ceased or suspended its operation shall be made solely by the CITY OF BOYNTON BEACH and GRANTEE, its successors or assigns in interest, agrees to be bound by the CITY OF BOYNTON BEACH's determination. Funds which are to be repaid the CITY OF BOYNTON BEACH pursuant to this Agreement, are to be repaid by delivering to the CITY OF BOYNTON BEACH a cashier's check for the total amount due payable to the CITY OF BOYNTON BEACH within seventy-five (75) days of the CITY OF BOYNTON BEACH's demand. III. IV. The above provisions do not waive any rights of the CITY OF BOYNTON BEACH or preclude the CITY OF BOYNTON BEACH from pursuing any other remedy which may be available to it under law. Nothing contained herein shall act as a limitation of the CITY OF BOYNTON BEACH's right to be repaid in the event the GRANTEE fails to comply with the terms of this Agreement. DEFAU LT/TERMINATION In the event that a party fails to comply with the terms of this Contract, other than payment of funds, then the non-defaulting party shall provide to the defaulting party notice of the default and the defaulting party shall have thirty (30) days within which to initiate action to correct the default and ninety (90) days within which to cure the default to the satisfaction of the non-defaulting party. Bo In the event that the defaulting party falls to cure the default, the non- defaulting party shall have the dght to terminate this Contract. The effective date of the termination shall be the date of the notice of termination. REPORTING REQUIREMENTS GRANTEE agrees to submit semi-annual (2) reports pursuant to the format set forth in Exhibit "D", attached hereto and made a part hereof. Beginning with the end of the sixth month following the effective date of this Agreement, these reports shall be submitted in a manner satisfactory to the CITY OF BOYNTON BEACH in its sole discretion no later than twenty (20) days following completion of each reporting period. The final semi-annual report shall be submitted to the CITY OF BOYNTON BEACH no later than the forty-seventh (47) month following the effective date of this Agreement. All grant payments made pursuant to this Agreement shall be contingent on the receipt and appro.val of the semi-annual reports required by this paragraph. Vo 'VI. MAXIMUM GRANT AMOUNT In no event shall the reimbursements made to GRANTEE pursuant to this Agreement exceed the maximum total grant of Seventy-five thousand dollars ($75,000). FINANCIAL ACCOUNTABILITY, REPORTS AND AUDITS The CITY OF BOYNTON BEACH may have a financial system analysis and an internal fiscal control evaluation of the GRANTEE performed by an independent auditing firm employed by the CITY OF BOYNTON BEACH at any time the CITY OF BOYNTON BEACH deems necessary to determine the capability of the GRANTEE to fiscally manage the grant award. Upon completion of all tasks contemplated under this Agreement, copies of all documents and records relating to this Agreement shall be submitted to the CITY OF BOYNTON BEACH if requested. 1799 VII. PERFORMANCE The parties expressly agree that time is of the essence with regard to performance as set forth in this Agreement and failure by GRANTEE to complete performance within the times specified, or within a reasonable time if no time is specified herein, shall, at the option of the CiTY OF BOYNTON BEACH without liability, in addition to any of the CITY OF BOYNTON BEACH's rights or remedies, relieve the CITY OF BOYNTON BEACH of any obligation under this Agreement. IX. VIII. INDEMNIFICATION The GRANTEE agrees to protect, defend, reimburse, indemnify and hold the CITY OF BOYNTON BEACH, its agents, its employees and elected officer and each of them, free and harmless at all times from and against any and all claims, liability, expenses, losses, costs, fines and damages, including attorney's fees, and causes of action of every kind and character against and from CITY OF BOYNTON BEACH which may arise out of this Agreement. The GRANTEE recognizes the broad nature of this indemnification and hold harmless clause, and voluntarily makes this covenant and expressly acknowledges the receipt of good and valuable consideration provided by the CITY OF BOYNTON BEACH in support of this obligation in accordance with the laws of the State of Florida. GRANTEE's aforesaid indemnity and hold harmless obligations, or portions or applications thereof, shall apply to the fullest extent permitted by law but in no event shall they apply to liability caused by the negligence or willful misconduct of the CITY OF BOYNTON BEACH, its respective agents, servants employees or officers, nor shall the liability limits set forth in section 768.25, .Flodda StatUtes, be waived. This paragraph shall survive the termination of the Agreement. INSURANCE GRANTEE must provide the CITY OF BOYNTON BEACH with evidence of insurance, worker's compensation insurance, general liability, and auto liability insurance pursuant to the scheduled required insurances attached in Exhibit "B". AVAILABILITY OF FUNDS The CITY OF BOYNTON BEACH's obligation to pay under this Agreement is contingent upon having received payment from Palm Beach County, pursuant to the terms of that certain Palm Beach County Development Regions Competitive Grant Agreement, November 2, 1999, which said Agreement is hereby incorporated herein by reference and made a part hereof. XI. REMEDIES This Agreement shall be governed by the laws of the State of Flodda. Any and all legal action necessary to enforce the Agreement will be held in Palm Beach County. No remedy herein conferred upon any party is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. No single or partial exercise by any party of any right, power, or remedy hereunder shall preclude any other or further exercise thereof. XII. CIVIL RIGHTS COMPLIANCE The GRANTEE warrants and represents that all of its employees are treated equally during employment without regard to race, color, religion, disability, sex, age, national origin, ancestry, marital status, or sexual orientation. XIII. FEES, COSTS 1800 if any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys' fees, court costs and all expenses (including taxes) even if not taxable as court costs (including, without limitation, all such fees, costs and expenses incident to appeals), incurred in that action or proceeding, in addition to any other relief to which such party or parties may be entitled, provided, however, that this clause pertains only to the parties to this Agreement. XlV. SEVERABILITY If any term or provision of this Agreement, or the application thereof to any person or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such terms or provision, to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected, and every other term and provision of this Agreement shall be deemed valid and enforceable to the extent permitted by law. ENTIRE AGREEMENT The CITY OF BOYNTON BEACH and the GRANTEE agree that this Agreement sets forth the entire Agreement between the parties, and that there are no promises or understandings other than those stated herein. None of the provisions, terms and conditions contained in this Agreement may be added to, modified, superseded or otherwise altered, except by written instrument executed by the parties hereto. XVI. NOTICE All notice required in this Agreement shall be sent by certified mail, retum receipt requested, to: with a copy to: CITY OF BOYNTON BEACH 100 E, Boynton Beach Blvd. Boynton Beach, FL 33435 Jim Cherof, Esq. Goren, Gherof, Doody, Ezrol, P.A. 3099 East Commercial Boulevard Suite 200 Ft. Lauderdale, FL 33308 and if sent to the GRANTEE shall be mailed to (current official address): IN WITNESS WHEREOF, the Chairman of the City of Boynton Beach has made and executed this Agreement and the GRANTEE has hereunto set its hand the day and year above, wdtten. 1801 ATTEST: CITY OF BOYNTON BEACH By: ATTEST: Company Name By: 1802 EXHIBIT A SCOPE OF SERVICES 1. PROJECT DESCRIPTION: Fa(~ade improvements made to a 17,000 sf retail shopping center in the Boynton Beach CITY OF BOYNTON BEACH. This is a 1971 vintage building. Upgrading of property will include redesigning property with new fa(;ade, landscaping, repaving, lighting, roofline, etc. Building at this time is 57% vacant. County Core Grant to City of Boynton Beach Boynton Beach funding In equity Total Project Cost PROJECT LOCATION High Ridge Properties LLC 640 East Ocean Ave. Boynton Beach, FL 33435 Jobs to Create: Jobs Existing: 10 (Business Tenants) 15 (8 Business Tenants) $ 50,000 25,000 198,000 $273,000 Contact Maro Fender 561-752-4553 The grant would be given to the Grantee upon completion of a financing and construction plan for the project satisfactory to the Grantor. The Grantee has until March 10, 2004 to incur the expenses related to the grant and must complete the project by no later than November 1,2004 including job growth requirements. 1803 EXHIBIT B LIST OF ELIGIBLE ACTIVITIES 1. Acquisition of real property. 2. Expansion of existing property. 3. Providing payment of impact fees. 4. Facade improvement programs. 5, Construction of new buildings. 6. Renovation of existing buildings. 7. Site development assistance. (Reimbursements will not pay: architectural or attomey's fees/retainers or deposits on goods not received.) 1804 Permitted Encumbrances 1st Mortgage Institution Book and Page Number NationsBank OR. Book 11030, Page 101 through Page 116 1805 EXHIBIT D SEMI-ANNUAL REPORT FORM Please Circle: ROUND Name of Applicant: Name of Project: Start Date: Completion Date: Please Circle Reporting Period: 1998 1 2 1999 1 2 2000 1 2 Funding Spent by Source for this 6 months: Cumulative Funds Spent fOr Round I County Participants Only: Municipality/CITY OF BOYNTON BEACH/CDC Business Other Describe Status of Project in Relation to: 1. Land Acquisition: 2. Construction: What will be accomplished by the next Semi-Annual Report? Employment Status at Project: Jobs Retained Start Date Title/Position Hours/Week Wage/Hour 1806 .New Jobs Created Start Date Title/Position Hours/Week Wage/Hour X. Other Items: XI. Adjournment. 1807 Any person who decides to appeal any decision of the Community Redevelopment Board with respect to any matter considered at this meeting will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. The CRA shall furnish appropriate auxiliary aids and services where necessary to afford an in~vidual with a disability an equal opportunity to participate in and enjoy the benefits ora service, program~ or activity conducted by the CRA. Please contact Douglas Hutchin.qon at 561-737-3256 at least twenty-four hours prior to the program or activity in order for the CRA to reasonably accommodate your request. TO: FROM THROUGH: DATE: SUB.1ECT: DEVELOPMENT DEPARTMENT PLANNING AND ZONING DIVZSION MEMORANDUM NO. PZ 03-ZZ0 Chairman and Members Community R,~ed, e~,gpment Agency Board ' h4'Vl Dick H udso n,~/)~ Senior Pla n ~?r Michael W. Rumpf Director of Planning and Zoning May 7, 2003 Transportation Concurrency Exemption Area NATURE OF REOUE~T Staff is requesting authorization to move forward through the City's Procurement Services process to select consultant services to conduct a Transportation Concurrency Exemption Area (TCEA) Traffic Study for the Community Redevelopment Area. The study and resulting TCEA would ultimately be adopted into the City's Comprehensive Plan. Tn effect, the adoption of a TCEA will almost assure that future development and redevelopment projects within the study area meet traffic concurrency. BACKGROUND In reviewing the Objections, Recommendations and Comments (ORC) Reports from the Department of Community Affairs (DCA) staff has determined that most of the objections and comments are related to concurrency issues, and the majority of those are related to traffic concurrency and generated by FDOT. The Florida legislature realized several years ago that often the unintended result of the concurrency requirement for transportation faciliUes is the discouragement of urban infill development and redevelopment. ]:n response, specific language was added to Chapter 163 F.S. (see Exhibit A) to address this problem by allowing several types of exemptions to the requirement for transportation concurrency; among these is the TCEA. Rules for development of a TCEA are found in Rule 9.1-5, Florida Administrative Code. (see Exhibit B). The Cities of Delray Beach and-Lake Worth have established TCEAs for their redevelopment areas, and Boca Raton has established one for the T-Rex Center south of Yamato Road. The Delray TCEA was one of the first completed in South Florida, and required approximately 8-10 months to complete. FDOT assisted with some parts of the study and used the results as a case study. Other local governments and DCA have given shorter time estimates and stress the importance of FDOT's involvement early and continuously in the process PROCESS The Procurement Services, handled through the City's Finance Department, will assist in development of the Request for Proposals, advertising, selection of consulting firm and 1761 Page 2 TCEA Memo May 7, 2002 development of contracts. Once a consultant is under contract, and the boundaries of the TCEA are determined, there would be a series of analyses of the area to determine existing conditions, and projected short- range and long-range conditions followed by development of strategies to offset TCEA impacts. These strategies could include: timing and staging plans, parking control and pricing policies, transportation demand management programs, transportation system management programs, availability of public transportation, and utilization of creative financing tools for the provision of transportation services and facilities. The final step is development of amendments to the City's Comprehensive Plan and DCA approval. It may be possible to have the amendments ready for transmittal with the October 1, 2003 round of amendments. Throughout the process, the consultant will be expected to work very closely with the District 4 office of the Florida Department of Transportation since FDOT approval of the TCEA will ultimately determine DCA's approval of the resulting Comprehensive Plan amendments. Staff has canvassed transportation consulting firms in the area to determine a general estimate of the cost of a TCEA Study as described, and has determined that an amount for consultant services "not to exceed $35,000" would be sufficient. Staff will specifically be looking for consultants with a proven track record conducting similar studies and successfully developing Comprehensive Plan amendments. RECOI~II~IENDA'rXON Staff is requesting authorization to move forward through the City's Procurement Services process to assist staff and you select consultant services to conduct a Transportation Concurrency Exemption Area O'CEA) Traffic Study for the Community Redevelopment Area at an amount not to exceed $35,000 in consulting fees. Exhibits ~ :\SHRDATA\PLAN NING\HUDSON\TCEA\TCEA MEMO. DOC 1762 Exhibit A 163.3180 Concurrency.-- (5)(a) The Legislature finds that under limited circumstances dealing with transportation facilities, countervailing planning and public policy goals may come into conflict with the requirement that adequate public facilities and services be available concurrent with the impacts of such development. The Legislature further finds that o~cen the unintended result of the concurrency requirement for transportation facilities is the discouragement of urban infill development and redevelopment. Such unintended results directly conflict with the goals and policies of the state comprehensive plan and the intent of this part. Therefore, exceptions from the concurrency requirement for transportation facilities may be granted as provided by this subsection. (b) A local government may grant an exception from the concurrency requirement for transportation facilities if the proposed development is otherwise consistent with the adopted local government comprehensive plan and is a project that promotes public transportation or is located within an area designated in the comprehensive plan for: 1. Urban infill development, 2. Urban redevelopment, 3. Downtown revitalization, or 4. Urban infill and redevelopment under s. 163.2517. (c) The Legislature also finds that developments located within urban infill, urban redevelopment, existing urban service, or downtown revitalizaUon areas or areas designated as urban infill and redevelopment areas under s. 163.2517 which pose only special part-time demands on the transportation system should be excepted from the concurrency requirement for transportation facilities. A special part-time demand is one that does not have more than 200 scheduled events during any calendar year and does not affect the 100 highest traffic volume hours. (d) A local government shall establish guidelines for granting the exceptions authorized in paragraphs (b) and (c) in the comprehensive plan. These guidelines must include consideration of the impacts on the Florida Intrastate Highway System, as defined in s. 338.001. The exceptions may be available only within the specific geographic area of the jurisdiction designated in the plan. Pursuant to s. 163.3184., any affected person may challenge a plan amendment establishing these guidelines and the areas within which an exception could be granted. 1763 Exhibit B 9]-5.0055 Concurrency Management System. (6) TRANSPORTA'I-~ON CONCURRENCY F_XCEPT~ON AREAS. The purpose of this flexible transportation concurrency option approach is to reduce the adverse impact transportation concurrency may have on urban infill development and redevelopment and the achievement of other goals and policies of the state comprehensive plan, such as promoting the development of public transportation. Under limited circumstances, it allows exceptions to the transportation concurrency requirement in specifically defined urban areas of a jurisdiction. The exceptions provide flexibility for concurrency management in order to encourage the application of a wide range of planning strategies that correspond with local circumstances of a specific geographic area. The exceptions apply to all land uses and development and types of facilities within expressly excepted areas. Local governments must specifically consider the impacts of the exception areas on the Florida Intrastate Highway System. (a) Tn order to exercise the option of establishing a transportation concurrency exception area, a local government must designate in its comprehensive plan a specific.geographic area, or areas, of transportation concurrency exception, consistent with the purpose of this subsection. A proposed development located in a designated exception area shall not be subject to the requirements of subparagraphs 9.1-5.0055(3)(c):!..-4., F.A.C., of this chapter. The designation of a transportation ~ concurrency exception area may include: :[. A specific geographic area, or areas, delineated in the local government comprehensive plan for urban infill development pursuant to Section 163.3164(27), F.S. The local comprehensive plan shall contain objectives and policies which specify actions and programs to promote urban infill development. An area delineated for urban infill development shall meet the following requirements. a. The area contains not more than 10 percent developable vacant land. The developable vacant land shall not include water bodies and land designated for conservation use, natural reservations, public road rights of way, public recreation sites, or related activities or Uses designated in the local government's comprehensive plan as unavailable for development. b. For areas where residential use is the predominant type of use comprising greater than 60 percent of the developed land, the average residential density shall be at least five dwelling units per gross residentially developed acre of land use. For areas where nonresidential use is the predominate type of use comprising greater than 60 percent of the developed land, the average nonresidential density shall be at least a floor area ratio of 1.0 per gross nonresidentially developed acre of land use. If neither residential nor nonresidential uses comprise greater than 60 percent of the developed land, then both the existing residential use and nonresidential use shall meet the appropriate density and intensity criteria prescribed above. The term "gross developed acre" shall include all uses associated with the predominant land use including parking, drainage, open space, landscaping and other support facilities. 2. A specific geographic area, or areas, delineated in the local government comprehensive plan for urban redevelopment pursuant to Section 163.3:~64(26), F.S. The plan must show that the urban redevelopment area is within an urban infill area which meets the criteda of sub-subparagraphs 9.]- 5.0055(6)(a):L.a. and b., F.A.C., which is established as a specific geographic area in the plan, or within an existing urban service area pursuant to Section 163.3164(29), F.S., established in the plan as a specific geographic area which does not contain more than 40 percent developable vacant land. The local comprehensive plan shall contain objectives and policies which specify actions and programs to promote urban redevelopment. A designated urban redevelopment area may include a Community Redevelopment Area established pursuant to the Community Redevelopment Act of 1969 when these areas exist within an urban infill area or an Existing Urban Service Area as designated in the local comprehensive plan. 1764 3. A specific geographic area delineated in the local government comprehensive plan for downtown revitalization within the designated central business district pursuant to Section :~63.3164(25), F.S. The comprehensive plan shall contain objectives and policies which specify actions and programs to promote downtown revitalization. (b) To implement the transportation concurrency exception areas, the following requirements must be met: ~.. The transportation concurrency exception areas, as designated, must be compatible with and further the various portions and elements of the local comprehensive plan. 2. The size and boundaries of each transportation concurrency excepUon area must be supported by data and analysis in the local government's plan support document which demonstrate consistency with the requirements of this subsection. A local government should coordinate with the Department of Transportation and the local metropolitan planning organization when designating transportaUon concurrency exception area boundaries. 3. Transportation concurrency exception areas may transcend jurisdictional boundaries when appropriate and must be designated in each applicable comprehensive plan consistent with the provisions of this subsection. (c) To implement the transportation concurrency exceptions, a local government should adopt as an amendment to its comprehensive plan, guidelines and/or policies which specify programs to address transportation needs of such areas. The guidelines may incorporate a wide range of strategies including, timing and staging plans, parking control and pricing policies, transportation dema. nd management programs, transportation system management programs availability of public transportation, and utilizaUon of creative financing tools for the provision of transportation services and facilities. (d) The guidelines and/or policies and programs implementing a transportation concurrency exception area as required in the above paragraph (c), if applicable, must demonstrate by supporting data and analysis, including short and long range traffic analysis, that consideration has been given to the impact of proposed development within the concurrency exception area on the Florida Intrastate Highway System. 1765 PROUD SPONSOR OF THE ANNUAL FPPA COI~IPENSATION HR Management Partners, Inc. Corporate Office, Central Division 1938 Westpointe Circle, Suite 350 Orlando, Florida 32835 Phone/Fax: (407) 765-4979 Website: http://hrmp.net Emaih Solutions@hrmp.net Classification, Compensation & Benefits Study Report Boynton Beach CRA May 2003 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report Approach & Methodology ................................................ 3 A. Salary Survey ................................................. 3 B. Classification & Compensation Detail Reports ......................... 4 C. CRA Market Study Survey Results ................................. 6 D. Policies & Procedures Manual ..................................... 7 Market Report Attachments CRA Classification & Compensation Detail CRA Independent Agency Response Data CRA Statewide Director Response Detail CRA Market Study Survey Detail CRA Pay Plan (which shall include job descriptions) CRA Survey Utility CRA Policy & Procedures Manual © HR Management Partners, Inc., 2003 2 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report This report provides an overview of Boynton Beach CRA's (BBCRA) external market survey for a Classification, Compensation & Benefits Study. This narrative details objectives, observations, and recommendations regarding proposed use of the market information in structuring a proposed compensation system for the BBCRA. The remaining body of this report details approach, methodology, and market data reports. Salary Survey HR Management Partners (HRMP) has conducted a second quarter 2003 market survey for BBCRA. The market study was conducted in the regional labor market of Palm Beach and Broward Counties, the area in which the BBCRA competes for skilled and qualified staff. Approach, study tasks, and project milestones are detailed in the following: · HRMP contacted the Florida Redevelopment Association (FRA) and requested their statewide membership roster to identify CRA's in the Palm Beach and Broward County markets. HRMP identified seventeen (17) agencies listed as CRA's within the region and contacted each agency to solicit participation for the BBCRA's market study. HRMP developed work descriptions for six (6) job classifications using job criteria provided by the BBCRA and the existing job descriptions for the work. The work descriptions were placed in spreadsheet format to solicit pay range data (see attached CRA Survey Utility). · HRMP then developed a series of survey questions to assist in identifying the comparability of the responding CRA's. The survey questions included a benefits survey to identify the benefits the various CRA's provide their staff. · Survey targets were contacted via telephone and electronic communication. Several survey targets were contact no less than three (3) times throughout the course of study in an effort to solicit the greatest participation response. · HRMP allowed approximately three (3) weeks for participants to respond to the survey. HRMP then extracted all raw data from the survey and initiated analysis. · Of the seventeen (17) survey targets, thirteen (13) CRA's provided response and/or meaningful feedback regarding the survey. Those that did not participate indicated "no response" or that, though currently registered with the Florida Redevelopment Association, their CRA was not active at this time. © HR Management Partners, Inc., 2003 3 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report Respondents consisted of the following agencies: CRA Contact Boca Rat:on Hollywood~ Downtown District Coral Springs Lauderdale Lakes Deerfield Beach Plantation Delray Beach Pompano Beach Fort Lauderdale (NPF) Riviera Beach Hallandale West Palm Beach Hollywood, Beach District From the survey results, HRMP found that only four (4) of the respondents are active and independent CPA's. These agencies are Delray Beach, the two (2) Hollywood districts and Riviera Beach. All others are municipally administered. Because nearly 70% of the BBCPA's competing labor market is municipal, HRMP has provided both the independent agency data and public sector market data to assist the Board in evaluating the current competitive stance of the BBCPA. CRA Classification & Compensation Detail Report The attached CRA Classification & Compensation Detail Report is an overall analysis report and outlines five (5) job classifications. For each listed job, pay range minimums, midpoints and maximums were solicited from the survey participants. These pay range criteria were solicited because this is the prevailing type of plan structure found in the BBCPA's current competing labor market. The values represented in these columns are the actual range data reported by the market participants. Participants were instructed to not match job titles. Rather, they were provided work descriptions and minimum qualification data and instructed to provide HRMP with range data for their jobs that matched the work descriptions. For each job, the current pay range data for the BBCPA was entered into the analysis. HRMP recognizes that these current pay ranges may not necessarily be the established rates for the BBCPA's jobs at this time. To conduct meaningful analyses, however, HRMP used the minimums and maximums of the previously published ranges (found in the original Policy & Procedure Manual). Because there was some question as to the structuring of midpoints within the ranges, HRMP calculated and entered true midpoints for the BBCPA midpoint analysis. Next, for each job, the BBCPA's difference to the overall market averages and medians was calculated. These values, expressed as percentage, indicate the BBCPA's current competitive stance in the labor market at either above, below or equal to the reported market values. Of the minimums, midpoints, and maximums, it is the midpoint values that provide the most significant and useful data as these values typically represented the going "market rate" for the jobs. © HR Management Partners, Inc., 2003 4 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report Because the majority of the respondents were municipalities, HRMP supplemented the data with our recently completed annual statewide survey, conducted by HRMP on behalf of the Florida League of Cities (FLC) and the Florida Public Personnel Association (FPPA). For this reason, the Board will note in the attached market report that there are two (2) analyses for each job, one (1) for public sector comparability and one (1) for independent CRA comparability. For public sector comparison to the Executive Director classification, HRMP selected the "Development Director" benchmark. This is the classification in municipalities responsible for directing CRA functions when the CRA is part of the municipality. Development Directors typically oversee planning, community redevelopment and economic development. For the public sector comparison to the Controller class, HRMP selected the "Senior Accountant" benchmark. Senior Accountants typically supervise staff in the payables, receivables, and general ledger accounting functions. Senior Accountants in the public sector are also typically responsible for budget management, asset management and/or capital funds accounting. In HRMP's estimation, supplementing the survey results was necessary. As the Board will note in the attached reports, even those agencies that are independent do not have the same job classifications and staffing levels as the BBCRA. Had HRMP not chosen to supplement the BBCRA's data, the response from the CRA survey targets would have considerably weak. Additionally, HRMP found that responses that were provided by the CRA's showed limited consistency from one agency to the next. Because the CRA is a public entity and competes for staff with other public entities, HRMP deemed it appropriate to compare each job to current public sector market data from the Palm Beach and Broward County marketplace. HRMP recognizes that the Executive Director classification is one for which the Board would expand the regional market to the statewide market. HRMP's annual statewide salary survey solicits data for the "CRA Director" classification. Therefore, HRMP has provided a supplemental report outlining the responses provided for this job classification throughout the state. The Board will note that, as with the custom survey results, the responses vary widely. Through the course of this study, HRMP learned that this is because the CRA function in this region as well as throughout the state is funded and administered with significant variation from one municipality to the next - even when the municipalities are in close proximity to each other. The attached CRA Classification & Compensation Detail Report shows the following in comparison to the public sector: The Secretary classification has competitive midpoints and maximums; however, the minimum is considerably lower than the overall market averages (22%). The Administrative Assistant classification is highly competitive (within 6% of the overall average in the market). · The Controller, when compared to a municipal Senior Accountant, is also highly competitive (within 6% of the overall average). · The data provided for the Executive Director classification will be useful to the Board in determining compensation for this administrative level job. · The data provided for the Events Coordinator classification will assist the Board in establishing compensation for this job if and when the need arises. © HR Management Partners, Inc., 2003 5 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report CRA Market Study Survey Results At the Board's direction, HRMP also included a survey section for identifying characteristics of the various agencies. The survey also solicited data regarding the employee benefits provided to CRA staff. The attached CRA Market Survey Results outlines in detail the responses received from the thirteen (13) respondents. HRMP drew the following summary conclusions regarding CRA comparability: · Approximately seventy percent (70%) of the CRA's in the Palm Beach and Broward County labor market are administered and staffed by their municipality. · Pompano, with two (2) CRA's, is the only municipally administered CRA that is comparable to the independent CRA's. The operating budgets of the CRA's vary significantly from one agency to the next, ranging from as Iow as $110,000 in Coral Springs to as high as $7.4 million in Delray Beach, which operates three (3) CRA districts. · The number of staff dedicated to the CRA function showed (for the most part) increase that was proportionate to higher funding, with the highest reported staff level of six (6). · The BBCRA has the third largest service area (1600 acres) and the second largest operating budget ($3.7 million). The two (2) Hollywood CRA districts are the only agencies that have employment contracts for all job classifications. Riviera Beach provides an employment contract to the Executive Director. Delray Beach no longer uses employment contracts. All other CRA's are municipal and do not utilize employment contracts. The two (2) Hollywood CRA districts only provide severance (150 days) to the Executive Director classification in the event of dismissal without cause. Only two (2) other agencies provide severance, indicating this would only occur in the event of lay-off due to lack of work. HRMP drew the following summary conclusions regarding employee benefits: Three (3) of the independent CRA's have their group health benefits administered by their municipality or have modeled their benefits to be the same. Riviera Beach has a small group HMO (for groups with less than 10 employees). The overwhelming majority of the market still pays at or near 100% of the single premium for group health coverage. Contributions to family premiums vary from as Iow as 0% employer contribution to as high as 100% of the family premium. (HRMP finds these same results in all market studies, as organizations are increasingly responding to rising health care costs by reducing contributions to dependent premiums.) © HR Management Partners, Inc., 2003 6 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report The majority of the market provides employer paid long term disability to employees as part of the group health coverage plan. A few agencies offer this benefit and other cafeteria type benefits to employees on an employee-paid (voluntary) basis. The majority of the competing market provides 12 to 13 days annual leave the first year of employment, accrued on a monthly basis, typically at 8 hours per month. Most have a progression schedule that reaches at least 20 days annual leave after the 15th year of employment. BBCRA's 1't year benefit is lesser, yet the progression schedule is more aggressive in that 4 weeks leave is provided by completion of year 10. The BBCRA's paid holidays policy is competitive with the market place, as the majority of respondents provide between 10 and 12 paid days (holiday, personal, float) per year. Because the majority of CRA's are municipally administered, staff assigned to their CRA functions have retirement benefits provided by their city. These benefits include pension in most cases, 401(A) money purchase plans, 457 deferred compensation, and (in a few instances) deferred retirement option plans (DROP). For those with pension, most require employee contributions ranging from 5% to 8% of employee salary. Three (3) of the independent CRA's provide a 457 deferred compensation plan, and provide an annual match that is linked to the employee's salary (up to allowable limits). Hollywood's Downtown District provides a higher match (16%) to the Executive Director classification. The fourth independent agency (Riviera Beach) provides a 403(b) plan, with an annual 6% contribution to the plan by the CRA. Policies & Procedures Manual HRMP has performed two (2) revisions to the original Policy & Procedure Manual provided by the BBCRA. The first revision incorporated significant addition to the content of the manual. At the Board meeting on February 27th, however, it was determined that the Board preferred a more streamlined version of the proposed draft. This request was due to the size and nature of the BBCRA current and projected staffing requirements. HRMP therefore further revised the proposed draft by removing sections that were not necessarily applicable to the BBCRA. Other sections were modified. The Board will note that the proposed changes are highlighted in red font in the attached manual. The following summarizes areas that have been proposed for change: The Section groupings, as outlined in the Table of Contents, have been re-ordered to allow for better categorization of the policy and procedure elements. The meeting minutes from the February 27th workshop were provided HRMP, and requested changes were incorporated, the most significant of which was modification to the Vacation Leave policy. Section 100 definitions were modified and expanded. An initial and promotional probationary period was established at ninety (90) calendar days and replaced all references to the previous one (1) year probationary period. © HR Management Partners, Inc., 2003 7 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report Section 2-4 references that applicants under consideration for employment may be required to undergo pre-employment drug screening. HRMP understands from the February 27th workshop that the Board's Attorney had concerns regarding pre- employment drug screening for public sector employees. HRMP inserted the word "may" in response to this concern (see revised draft). HRMP, however, will remove all pre- employment drug screening reference from the final document if directed by the Board or Attorney to do so. The original manual provided HRMP referenced the performance evaluation process, yet did not provide any policies or procedures for conducting performance appraisals. HRMP has incorporated proposed draft policies under Section 300. HRMP understands the BBCRA does not use a performance evaluation system at this time. When a system is implemented, however, the Board may then determine if HRMP's proposed performance evaluation policies and procedures are appropriate for the CRA's needs. Section 3-6 includes code of conduct and disciplinary provisions. The provisions, examples of misconduct, procedures and types of action sections have been incorporated from the original document provided to HRMP. Changes that occurred include: a) Modifying the original 1,2,3 progressive discipline structure. b) Incorporating a "Record of Discussion" form to facilitate and document counseling actions. c) Incorporating an "Inefficiency or Incompetence" section that is linked to performance appraisal. Section 5-6 states the BBCRA's Drug Free Workplace Policy. HRMP has removed reference to drug testing policy, which is typically only applicable to positions that are DOT regulated. Any sections outlined in blue are important for the Board to: 1. Consider the question HRMP is asking in relationship to the attached market information, or 2. Determine a policy decision that is in the best interest of the CRA. HRMP appreciates the opportunity to provide these services to the BBCRA. We look forward to comments and feedback regarding survey results and proposed draft documents. © HR Management Partners, Inc., 2003 8 PROUD SPONSOR OF THE ANNUAL FPPA COMI'EN,~IIOlV HR Management Partners, Inc. Corporate Office, Central Division 1938 Westpointe Circle, Suite 350 Orlando, Florida 32835 Phone/Fax: (407) 765-4979 Website: http://hrmp.net Email: Solutions@hrmp. net Classification, Compensation & Benefits Study Report Boynton Beach CRA May 2003 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report Approach & Methodology ................................................ 3 A. Salary Survey ................................................. 3 B. Classification & Compensation Detail Reports ......................... 4 C. CRA Market Study Survey Results ................................. 6 D. Policies & Procedures Manual ..................................... 7 Market Report Attachments CRA Classification & Compensation Detail CRA Independent Agency Response Data CRA Statewide Director Response Detail CRA Market Study Survey Detail CRA Pay Plan (which shall include job descriptions) CRA Survey Utility CRA Policy & Procedures Manual © HR Management Partners, Inc., 2003 2 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report This report provides an overview of Boynton Beach CRA's (BBCRA) external market survey for a Classification, Compensation & Benefits Study. This narrative details objectives, observations, and recommendations regarding proposed use of the market information in structuring a proposed compensation system for the BBCRA. The remaining body of this report details approach, methodology, and market data reports. Salary Survey HR Management Partners (HRMP) has conducted a second quarter 2003 market survey for BBCRA. The market study was conducted in the regional labor market of Palm Beach and Broward Counties, the area in which the BBCRA competes for skilled and qualified staff. Approach, study tasks, and project milestones are detailed in the following: HRMP contacted the Florida Redevelopment Association (FPA) and requested their statewide membership roster to identify CPA's in the Palm Beach and Broward County markets. HRMP identified seventeen (17) agencies listed as CPA's within the region and contacted each agency to solicit participation for the BBCRA's market study. HRMP developed work descriptions for six (6) job classifications using job criteria provided by the BBCRA and the existing job descriptions for the work. The work descriptions were placed in spreadsheet format to solicit pay range data (see attached CRA Survey Utility). HRMP then developed a series of survey questions to assist in identifying the comparability of the responding CRA's. The survey questions included a benefits survey to identify the benefits the various CPA's provide their staff. Survey targets were contacted via telephone and electronic communication. Several survey targets were contact no less than three (3) times throughout the course of study in an effort to solicit the greatest participation response. HRMP allowed approximately three (3) weeks for participants to respond to the survey. HRMP then extracted all raw data from the survey and initiated analysis. Of the seventeen (17) survey targets, thirteen (13) CPA's provided response and/or meaningful feedback regarding the survey. Those that did not participate indicated "no response" or that, though currently registered with the Florida Redevelopment Association, their CPA was not active at this time. © HR Management Partners, Inc., 2003 3 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report Respondents consisted of the following agencies: CRA Contact Boca Rat:on Hollywood~ Downt:own Dist:rid' Coral Springs Lauderdale Lakes Deen=ield Beach Planl:at:ion Delray Beach Pompano Beach Fort Lauderdale (NPF) Riviera Beach Hallandale West: Palm Beach Hollywood, Beach Dist:rict: From the survey results, HRMP found that only four (4) of the respondents are active and independent CPA's. These agencies are Delray Beach, the two (2) Hollywood districts and Riviera Beach. All others are municipally administered. Because nearly 70% of the BBCPA's competing labor market is municipal, HRMP has provided both the independent agency data and public sector market data to assist the Board in evaluating the current competitive stance of the BBCRA. CRA Classification & Compensation Detail Report The attached CRA Classification & Compensation Detail Report is an overall analysis report and outlines five (5) job classifications. For each listed job, pay range minimums, midpoints and maximums were solicited from the survey participants. These pay range criteria were solicited because this is the prevailing type of plan structure found in the BBCRA's current competing labor market. The values represented in these columns are the actual range data reported by the market participants. Participants were instructed to not match job titles. Rather, they were provided work descriptions and minimum qualification data and instructed to provide HRMP with range data for their jobs that matched the work descriptions. For each job, the current pay range data for the BBCPA was entered into the analysis. HRMP recognizes that these current pay ranges may not necessarily be the established rates for the BBCPA's jobs at this time. To conduct meaningful analyses, however, HRMP used the minimums and maximums of the previously published ranges (found in the original Policy & Procedure Manual). Because there was some question as to the structuring of midpoints within the ranges, HRMP calculated and entered true midpoints for the BBCPA midpoint analysis. Next, for each job, the BBCPA's difference to the overall market averages and medians was calculated. These values, expressed as percentage, indicate the BBCPA's current competitive stance in the labor market at either above, below or equal to the reported market values. Of the minimums, midpoints, and maximums, it is the midpoint values that provide the most significant and useful data as these values typically represented the going "market rate" for the jobs. © HR Management Partners, Inc., 2003 4 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report Because the majority of the respondents were municipalities, HRMP supplemented the data with our recently completed annual statewide survey, conducted by HRMP on behalf of the Florida League of Cities (FLC) and the Florida Public Personnel Association (FPPA). For this reason, the Board will note in the attached market report that there are two (2) analyses for each job, one (1) for public sector comparability and one (1) for independent CRA comparability. For public sector comparison to the Executive Director classification, HRMP selected the "Development Director" benchmark. This is the classification in municipalities responsible for directing CRA functions when the CRA is part of the municipality. Development Directors typically oversee planning, community redevelopment and economic development. For the public sector comparison to the Controller class, HRMP selected the "Senior Accountant" benchmark. Senior Accountants typically supervise staff in the payables, receivables, and general ledger accounting functions. Senior Accountants in the public sector are also typically responsible for budget management, asset management and/or capital funds accounting. In HRMP's estimation, supplementing the survey results was necessary. As the Board will note in the attached reports, even those agencies that are independent do not have the same job classifications and staffing levels as the BBCRA. Had HRMP not chosen to supplement the BBCRA's data, the response from the CRA survey targets would have considerably weak. Additionally, HRMP found that responses that were provided by the CRA's showed limited consistency from one agency to the next. Because the CRA is a public entity and competes for staff with other public entities, HRMP deemed it appropriate to compare each job to current public sector market data from the Palm Beach and Broward County marketplace. HRMP recognizes that the Executive Director classification is one for which the Board would expand the regional market to the statewide market. HRMP's annual statewide salary survey solicits data for the "CRA Director" classification. Therefore, HRMP has provided a supplemental report outlining the responses provided for this job classification throughout the state. The Board will note that, as with the custom survey results, the responses vary widely. Through the course of this study, HRMP learned that this is because the CRA function in this region as well as throughout the state is funded and administered with significant variation from one municipality to the next - even when the municipalities are in close proximity to each other. The attached CRA Classification & Compensation Detail Report shows the following in comparison to the public sector: The Secretary classification has competitive midpoints and maximums; however, the minimum is considerably lower than the overall market averages (22%). The Administrative Assistant classification is highly competitive (within 6% of the overall average in the market). · The Controller, when compared to a municipal Senior Accountant, is also highly competitive (within 6% of the overall average). · The data provided for the Executive Director classification will be useful to the Board in determining compensation for this administrative level job. · The data provided for the Events Coordinator classification will assist the Board in establishing compensation for this job if and when the need arises. © HR Management Partners, Inc., 2003 5 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report CRA Market Study Survey Results At the Board's direction, HRMP also included a survey section for identifying characteristics of the various agencies. The survey also solicited data regarding the employee benefits provided to CRA staff. The attached CRA Market Survey Results outlines in detail the responses received from the thirteen (13) respondents. HRMP drew the following summary conclusions regarding CRA comparability: Approximately seventy percent (70%) of the CRA's in the Palm Beach and Broward County labor market are administered and staffed by their municipality. Pompano, with two (2) CRA's, is the only municipally administered CRA that is comparable to the independent CRA's. The operating budgets of the CRA's vary significantly from one agency to the next, ranging from as Iow as $110,000 in Coral Springs to as high as $7.4 million in Delray Beach, which operates three (3) CRA districts. · The number of staff dedicated to the CRA function showed (for the most part) increase that was proportionate to higher funding, with the highest reported staff level of six (6). · The BBCRA has the third largest service area (1600 acres) and the second largest operating budget ($3.7 million). The two (2) Hollywood CRA districts are the only agencies that have employment contracts for all job classifications. Riviera Beach provides an employment contract to the Executive Director. Delray Beach no longer uses employment contracts. All other CRA's are municipal and do not utilize employment contracts. The two (2) Hollywood CRA districts only provide severance (150 days) to the Executive Director classification in the event of dismissal without cause. Only two (2) other agencies provide severance, indicating this would only occur in the event of lay-off due to lack of work. HRMP drew the following summary conclusions regarding employee benefits: Three (3) of the independent CRA's have their group health benefits administered by their municipality or have modeled their benefits to be the same. Riviera Beach has a small group HMO (for groups with less than 10 employees). The overwhelming majority of the market still pays at or near 100% of the single premium for group health coverage. Contributions to family premiums vary from as Iow as 0% employer contribution to as high as 100% of the family premium. (HRMP finds these same results in all market studies, as organizations are increasingly responding to rising health care costs by reducing contributions to dependent premiums.) © HR Management Partners, Inc., 2003 6 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report · The majority of the market provides employer paid long term disability to employees as part of the group health coverage plan. A few agencies offer this benefit and other cafeteria type benefits to employees on an employee-paid (voluntary) basis. · The majority of the competing market provides 12 to 13 days annual leave the first year of employment, accrued on a monthly basis, typically at 8 hours per month. Most have a progression schedule that reaches at least 20 days annual leave after the 15th year of employment. BBCRA's 1st year benefit is lesser, yet the progression schedule is more aggressive in that 4 weeks leave is provided by completion of year 10. · The BBCRA's paid holidays policy is competitive with the market place, as the majority of respondents provide between 10 and 12 paid days (holiday, personal, float) per year. · Because the majority of CRA's are municipally administered, staff assigned to their CRA functions have retirement benefits provided by their city. These benefits include pension in most cases, 401(A) money purchase plans, 457 deferred compensation, and (in a few instances) deferred retirement option plans (DROP). For those with pension, most require employee contributions ranging from 5% to 8% of employee salary. · Three (3) of the independent CRA's provide a 457 deferred compensation plan, and provide an annual match that is linked to the employee's salary (up to allowable limits). Hollywood's Downtown District provides a higher match (16%) to the Executive Director classification. The fourth independent agency (Riviera Beach) provides a 403(b) plan, with an annual 6% contribution to the plan by the CRA. Policies & Procedures Manual HRMP has performed two (2) revisions to the original Policy & Procedure Manual provided by the BBCRA. The first revision incorporated significant addition to the content of the manual. At the Board meeting on February 27th, however, it was determined that the Board preferred a more streamlined version of the proposed draft. This request was due to the size and nature of the BBCRA current and projected staffing requirements. HRMP therefore further revised the proposed draft by removing sections that were not necessarily applicable to the BBCRA. Other sections were modified. The Board will note that the proposed changes are highlighted in red font in the attached manual. The following summarizes areas that have been proposed for change: The Section groupings, as outlined in the Table of Contents, have been to-ordered to allow for better categorization of the policy and procedure elements. The meeting minutes from the February 27th workshop were provided HRMP, and requested changes were incorporated, the most significant of which was modification to the Vacation Leave policy. Section 100 definitions were modified and expanded. An initial and promotional probationary period was established at ninety (90) calendar days and replaced all references to the previous one (1) year probationary period. © HR Management Partners, Inc., 2003 7 Boynton Beach Community Redevelopment Agency Classification, Compensation & Benefits Study Report Section 2-4 references that applicants under consideration for employment may be required to undergo pre-employment drug screening. HRMP understands from the February 27th workshop that the Board's Attorney had concerns regarding pre- employment drug screening for public sector employees. HRMP inserted the word "may" in response to this concern (see revised draft). HRMP, however, will remove all pre- employment drug screening reference from the final document if directed by the Board or Attorney to do so. The original manual provided HRMP referenced the performance evaluation process, yet did not provide any policies or procedures for conducting performance appraisals. HRMP has incorporated proposed draft policies under Section 300. HRMP understands the BBCRA does not use a performance evaluation system at this time. When a system is implemented, however, the Board may then determine if HRMP's proposed performance evaluation policies and procedures are appropriate for the CRA's needs. Section 3-6 includes code of conduct and disciplinary provisions. The provisions, examples of misconduct, procedures and types of action sections have been incorporated from the original document provided to HRMP. Changes that occurred include: a) Modifying the original 1,2,3 progressive discipline structure. b) Incorporating a "Record of Discussion" form to facilitate and document counseling actions. c) Incorporating an "Inefficiency or Incompetence" section that is linked to performance appraisal. Section 5-6 states the BBCRA's Drug Free Workplace Policy. HRMP has removed reference to drug testing policy, which is typically only applicable to positions that are DOT regulated. Any sections outlined in blue are important for the Board to: 1. Consider the question HRMP is asking in relationship to the attached market information, or 2. Determine a policy decision that is in the best interest of the CRA. HRMP appreciates the opportunity to provide these services to the BBCRA. We look forward to comments and feedback regarding survey results and proposed draft documents. © HR Management Partners, Inc., 2003 8 POLICY & PROCEDURE MANUAL COMMUNITY REDEVELOPMENT AGENCY 639 E. Ocean Avenue, Suite/4107 Boynton Beach, FL. 33435 (561) 737-3256 FAX (561) 737-3258 Community Redevelopment Agency Table of Contents 100 GENERAL PROVISIONS 1-1 1-2 1-3 1-4 1-5 Purpose Positions Covered by these Policies Approval and Amendment of Policies Definitions Organization for Human Resource Administration 3 3 3 3 5 200 EMPLOYMENT/RECRUITMENT & SELECTION 2-1 2-2 2-3 2--4 2-5 2-6 2-7 2-8 2-9 EEO Statement Recruitment Employment Applications Selection Procedures Type of Employees Employment of Relatives (Nepotism) Recommendation for Employment Employment Acceptance Disqualification for Employment 5 6 6 6 6 7 7 7 7 300 EMPLOYMENT PROVISIONS 3-1 3-2 3-3 3-4 3-5 3-6 Probationary Period Performance Evaluations Harassment Formal Grievances Personnel Actions Code of Conduct and Disciplinary Provisions 8 8 9 10 11 11 4OO CLASSIFICATION & PAY PROVISIONS 4-1 4-2 4-3 Classification Provisions Pay Provisions Hours of Work / Overtime / Compensatory Time 18 18 18 500 EMPLOYMENT CONDITIONS 5-1 Outside Employment 5-2 CRA Equipment 5-3 Address & Telephone Numbers 5-4 Political Activity 5-5 Resignation 5-6 Drug Free Workplace 19 19 19 19 2O 2O 600 EMPLOYEE BENEFIT PROGRAMS 6-1 6-2 6-3 6-4 6-5 6-6 6-7 6-8 6-9 6-10 6-11 V-a6at. k~ Annual Leave Sick Leave Holidays Compassionate Leave Jury Leave Military Leave Short Term Disability Long Term Disability Leave Without Pay Medical & Dental Insurance Retirement 22 23 24 24 24 25 25 25 25 26 26 2 Section 1: GENERAL PROVISIONS 1-1 Purpose These policies are to provide guidance to the CRA Board in the administration of the CRA's employees. It is the intent of these policies to ensure that CRA employees will be dealt with on an equitable basis, so that the citizens of the CRA area may derive benefits and advantages as a result of a competent CRA staff. It is the responsibility of all CRA employees to read and abide by all provisions of all policies even as amended from time to time. 1-2 Positions Covered by These Policies The policies shall apply to all non-contract employees. These policies shall also apply to employees with individual employment contracts if incorporated by reference into the employment contract. 1-3 Approval and Amendment of Policies These policies shall be in force and in effect when approved by the CRA Board and replace existing policies and procedures, The CRA Board whose decision shall be final shall decide interpretations of any conflicting or ambiguous language. The CRA Board may amend these policies from time to time. 1-4 Definitions Administrative Review - Review and approval of a personnel action by the CRA Executive Director. Appeal - A request by a regular employee for consideration by the CRA Board. Continuous Service - Employment that is uninterrupted by separations of employment, layoffs, etc. Contract Employee - An employee under an individual employment contract with the CRA Board. Contract employees do not have any dghts or benefits other than what is specifically stated in their individual employment contract. Demotion -Assignment of an employee to a position in a lower class having a lower maximum salary than the position from which the assignment is made. Dismissal - The discharge of an employee from his/her position with the CRA. The terms termination and dismissal are interchangeable. Employment Contract - An individual contract that provides a non-regular employee with a written agreement of employment terms. Exempt Employee - Any employee whose position is ineligible for overtime as determined by the Fair Labor Standards Act. Full-time Employee - A budgeted regular employee who is scheduled to work a minimum of forty (40) hours per week. Grievance - Formal notice of dissatisfaction by a regular employee who feels they have been unjustly treated in cases regarding their employment. Hire Date - An employee's date of hire or re-hire, whichever is later. Immediate Family - Spouse, mother, father, son, daughter, sibling, stepfather, stepmother, stepchild. ~r~n~l~hilN Initial Probationary Period - A ninety (90) day calendar period of time beginning with the employee's hire date. Leaves or breaks in service without pay for more than fifteen (15) working days may cause this date to be extended by the actual number of work days missed. During the Initial Probationary Period, an employee may be terminated without notice and without cause. Job Anniversary/Classification Date - the effective date of a promotion or demotion action. Layoff - Dismissal from employment because of shortage of work or funds, or because of changes in the organization. Non-Exempt Employee - Any hourly employee whose position is eligible for overtime after forty (40) hours of work per week as determined by the Fair Labor Standards Act. Overtime Pay - Pay for overtime worked in excess of a non-exempt employee's forty (40) hour workweek. Part-time - Appointment to a position that usually requires a working schedule less than thirty (30) work hours per week. Pay Plan - A formal schedule of pay ranges for all classification of work. The schedule shall set fodh for each classification the minimum, mid/control point and maximum to provide values of work among classes within the appropriate labor market. Pay Ranae -The minimum and maximum pay established by the CRA Board for budgeted positions. Performance Appraisal - Assessment of how well an employee has performed during a period of time. Position Probationary Period - A ninety (90) day calendar period of time beginning with the effective date of a promotion or demotion of a regular employee. Leaves or breaks in service without pay for more than fifteen (15) working days may cause this date to be extended by the actual number of work days missed. During the Position Probationary Period, an employee may be returned or demoted to their former position without notice and without cause. Probationary Employees - Any employee who is serving in a new position either by appointment, promotion or demotion. Promotions or demotions occurring within the established initial probationary pedod shall cause an employee to begin a new initial probationary pedod. Promotion - The assignment of an employee to a position in a higher class having a higher maximum salary than the position from which assignment is made. Reclassification - The change of a job classification due to a change in or an increase or decrease in the assigned duties and responsibilities of the position. Re.qular Employee - An employee who has achieved regular status after completing the established or applicable probationary period. Relative - Aunt, uncle, nephew, niece, grandparent, grandchild, cousin. Suspension -The separation with or without pay of an employee for a pedod of time. Exempt employees shall be subject to no less than one week suspensions without pay. Temporary Employee - An employee in a position other than regular full-time or part-time for a specified pedod of time. Temporary Position - All positions that are not designated regular budgeted positions. Vacancy - An existing or newly created position, which is not occupied. Workweek - The established forty (40) hour period of time that constitutes the workweek for FLSA purposes. Non- exempt employees are not eligible for overtime compensation until after completion of forty (40) hours in the workweek. 4 1-5 Human Resources Administration The CRA Board: A. Considers and adopts the recommended Policy & Procedure Manual upon receiving recommendation from CRA staff. B. Approves recommended pay plan(s) as needed. C. Approves appointments and removals of individuals regardless of contract status. D. Authorizes all new CRA positions, assigns funding for pay ranges and authorizes recruitments. The CRA Executive Director or designee: A. Is responsible to the CRA Board for the administration of the Policy and Procedure Manual and other Board directives. B. Recruits, appoints, promotes, transfers or removes, demotes, suspends, dismisses or disciplines all subordinate employees. C. Performs or delegates all duties and exemises all powers in personnel. D. Administers the recommended and approved pay plan. E. Administers an effective payroll system. F. Develops and implements effective training programs for employees G. Recommends such policies or revisions in compliance with prevailing legislation. H. Administers the employee benefits programs. I. Administers an effective disciplinary program. J. Administers an effective performance appraisal program. Section 2: RECRUITMENT, SELECTION & EMPLOYMENT 2-1 Equal Opportunity Statement The CRA is an Equal Opportunity Employer and prohibits discrimination because of race, color, creed, religion, national odgin, sex, age, political affiliation, handicap (except where such factor is a bona fide occupational qualification or is required by State and/or Federal law), or marital status in all aspects of its personnel policies, programs, practices, recruitment, examination, appointment, training, promotion, retention or any other actions and operations. PURPOSE: The purpose of this Policy is to reaffirm the CRA's position regarding non-discrimination in all matters. PROVISIONS: All recruitment activities, hiring, training, employment decisions, and personnel actions will be based on valid qualifications without regard to race, color, religion, sex. national odgin, age, handicap, or madtal status. 2-2 Recruitment The CRA Executive Director shall implement effective EEO hidng procedures. The CRA Board shall authorize all new CRA positions, assign funding for pay ranges and direct the CRA Executive Director to start the recruitment and selection procedures. Job announcements shall then be publicized internally and/or externally for ten (10) working days. All employment discussions are to be considered non-obligatory, exploratory, and tentative in nature and indicated as such to applicants. Only authorized offers of employment made to individuals are binding on the CRA. 2-3 Employment Applications 2-4 2-5 2-6 Individuals desidng consideration for employment may submit a letter of interest, or a resume to the CRA Executive Director or designee. All applicants submitting a resume or letter of interest and granted further consideration shall complete an application for employment prior to any job offer. Applications will only be accepted when a vacancy occurs. Applications will be maintained for a pedod of two (2) years and then properly destroyed in accordance with Public Records laws. Applications must be signed and certified by the applicant. Incomplete applications will not be accepted. When a vacancy occurs, previously submitted applications on file may be updated for consideration in addition to all new applications and resumes received until the established closing date or until the vacancy is filled. Selection Procedures Selection processes may consist of one or more of the following: 1. Background Investigations including motor vehicle driving record and criminal history check. 2. Reference checks. 3. Performance examination. 4. Review and evaluation of education, training, and experience. 5. Any other applicable criteda which will fairly assess the abilities of individuals to perform the duties required for the position. Applicants considered for employment may be subject to pre-employment controlled substances screening. Applicants testing positive for any of the specified drugs will not be eligible for employment. Such applicants may not be considered for employment for a period of two (2) years following a positive drug test. Type of Employee CRA employees are divided into two groups, contract and non-contract. Contract employees are individuals hired by a direct employment contract for a specified duration of time that may or may not be budgeted by the CRA Board. Non-contract employees fill regular budgeted positions as authorized by the CRA Board and are not otherwise designated as contract employees. Employment of Relatives (Nepotism) The CRA will comply with Florida Statue 112.3135 regarding nepotism rules in an effort to eliminate hidng practices which result in conflicts of interest, favontism or the appearance of impropriety. Further, approval will not be granted for the employment, promotion, or transfer of a member of the immediate family of an employee or other relative by marriage (father, mother, spouse, son, daughter, brother, sister, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepparent, stepchild, grandparents, grandchildren or other persons living in the same household of the employee's household.) 2-7 Recommendation For Employment Once the interview process has revealed a suitable applicant and the reference checks and screening steps appear satisfactory, the CRA Executive Director is authorized to then hire that applicant for employment, and ,,,~,,-,~ .~, ....... ~,..,,,,~ .^ .~,~ r-~ .-.,,o..,~ If the CRA Executive Director proposes a salary exceeding the minimum of the position's pay range, wdtten justification must be included for consideration. 2-8 Employment Acceptance Upon receiving an offer for employment, the applicant must make employment acceptance within three (3) working days of the employment offer, unless otherwise extended by the CRA Executive Director (maximum of 5 working days). If employment acceptance is declined, the CRA Executive Director may consider another applicant from the recruitment's applicant pool, or may choose to begin a new recruitment process. All new CRA employees attend an orientation program after starling employment. At that time the new employee must provide proof of work eligibility and verification of identity to the CRA in accordance with prevailing IRCA laws. Employees are responsible for reading, undemtanding, and abiding by all CRA policies and procedures as amended from time to time. 2-9 Disqualification For Employment The CRA may reject an applicant who does not possess the minimum qualifications required for the position. Failure to meet the physical requirements necessary to perform the essential functions for a particular job as determined by the CRA will also result in disqualification if a reasonable accommodation for an otherwise qualified individual with a disability cannot be reached, or would create an undue hardship. Fraudulent conduct, false statements, or omissions by an applicant or by others on behalf of the applicant with the applicant's knowledge, in any application or examination, may be cause for the disqualification of such applicant, or termination from the CRA employment. Immediate relatives or persons living in the residence of CRA Board members, the CRA Executive Director, or designee are not eligible for employment. Section 3: EMPLOYMENT PROVISIONS 3-1 Probationary Pedod All entrance appointments shall be in a probationary status for a pedod of ninety (90) calendar days unless extended by the CRA Executive Director. Probationary statuses may be extended upon written notification to the employee up to six (6) months at the discretion of the CRA Executive Director. This tdal working pealed shall be utilized to observe an employee's performance. All promotion or demotion appointments effected within the initial probationary pedod shall cause the employee to begin serving a new ninety (90) day initial probationary pedod. All promotional appointments occurring after the ninety (90) day initial probationary pedod has occurred shall be deemed as position probationary pededs; employees not successfully completing this position probationary pedod shall be returned to their previous classification status without appeal benefits. If either initial or position probationary pedods are extended, no wage or salary increases shall be affected dudng the extension periods. Awards granted after the extensions shall not be retroactive. A probationary employee who has not successfully passed the established initial probationary pedod in any classification may be terminated by the CRA Executive Director. 3-2 Performance Evaluations 3-3 A. General Provisions The employee's performance evaluation is designed to examine, review and document work performance. The ratings shall be set forth on the applicable performance evaluation form. Each employee shall be given a copy of the evaluation prepared and shall have the opportunity to discuss it with the employee's supervisor. Employees may appeal their evaluation to the CRA Executive Director within five (5) working days of receiving their performance evaluation. Such appeals must state the reason for the appeal, the facts supporting the employee's case, and any other pertinent information relevant to the matters at hand. The CRA Executive Director shall schedule an appeals meeting within fifteen (15) working days of receipt of the appeal, preside over the appeals meeting, and render a decision on the matter within fifteen (15) working days of the appeals meeting. All decisions of the CRA Executive Director are final. B. Frequency of Performance Evaluations Performance evaluations are completed annually with the first coinciding with the successful passing of the initial probationary pedod and/or position probationary period, and annually thereafter coinciding with employees' hire or job anniversary date, whichever is applicable. Special evaluations may be conducted at any time with the approval of the CRA Executive Director. C. Performance Evaluation Ratinq Procedure The direct supervisor of the employee shall be responsible for obtaining the appropriate evaluation form and completing the evaluation. An employee must sign and date the completed evaluation form indicating that he/she has discussed and received a copy The signature does not mean he/she agrees with the evaluation. If the employee refuses to sign the form, it should be so indicated by the CRA Executive Director in the space provided for the employee's signature. Harassment The CRA is committed to a professional work environment in which all individuals are treated with respect and dignity. Each individual has the dght to work in an atmosphere that promotes equal opportunities and prohibits discriminatory practices, including sexual and other forms of harassment. Therefore, the CRA expects that all relationships among persons in the office be businesslike and free of bias, prejudice and harassment. In keeping with this commitment, the CRA maintains a stdct policy prohibiting harassment of staff members in any form in the workplace from other staff members, vendors, contractors, or guests. Violators shall be subject to termination. Sexual harassment constitutes discrimination and is illegal under federal and state laws. For the purposes of this policy, sexual harassment is defined as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of sexual nature when, for example: (1) submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment; (2) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual; (3) such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment. Sexual harassment may include a range of subtle and not so subtle behaviors and may involve individuals of the same or different gender. Depending on the circumstances these behaviors may include, but are not limited to: unwanted sexual advances; subtle or overt pressure for sexual favors; sexual jokes; innuendoes; advances or propositions; verbal abuse of a sexual nature; graphic commentary about an individual's body, sexual prowess or sexual deficiencies; leering, whistling, touching, pinching, assault, coerced sexual acts, or suggestive, insulting or obscene comments or gestures; display in the workplace of sexual suggestive objects or pictures; and other physical, verbal, or visual conduct of a sexual nature. The CRA's policy equally prohibits any other type of harassment involving a protected category under federal, state, or local law (for example, on the basis of race, color, religion, national origin, age and/or disability.) This policy applies to all applicants and staff members whether related to conduct engaged in by fellow staff members, managers, or someone not directly connected to the CRA (e.g., an outside vendor, consultant, the public.) Reporting an Incident of Harassment The CRA encourages reporting all perceived incidents of harassment, regardless of the offender's identity or position. Individuals who believe they have been the victims of harassment should discuss their concerns with their CRA Executive Director or designee. Administrative investigations shall then be conducted to ascertain necessary facts. Decisions on the involved parties' status will then be rendered. Individuals who believe they have been the victim of harassment or believe they have witnessed harassment should discuss their concerns with the CRA Executive Director or designee. If you receive information regarding sexual harassment you are obligated to report it immediately to the CRA Executive Director. We encourage the prompt reporting of complaints or concerns so that rapid and constructive action can be taken. Therefore, while no fixed reporting period had been established, early reporting and intervention has proven to be the most effective method of resolving actual or perceived incidents of harassment. Harassment Policy Complaint Procedure A. Informal Complaint Procedure Informal Complaints are defined as verbal notifications to the alleged offender and/or to the CRA Executive Director or designee regarding an alleged instance of harassment. The CRA encourages individuals who believe they are being harassed to promptly notify the offender that his or her behavior is unwelcome. If, for any reason, individuals do not wish to confront the offender directly or such a confrontation does not successfully end the harassment, individuals shall notify the CRA Executive Director or designee. The CRA Executive Director must be notified in all instances. Failure to do so may result in disciplinary action up to and including termination. B. Formal Complaint Procedure Formal complaints are defined as written complaints submitted to the CRA Executive Director regarding an alleged instance of harassment. The CRA encourages individuals who believe they are being harassed to promptly notify the CRA Executive Director of the unwelcome behavior. The CRA Executive Director must be notified in all instances. Failure to do so may result in disciplinary action up to and including termination. Administrative Investiqations Any repoded allegations of harassment will be investigated promptly. The investigation may include individual interviews with the parties involved and, where necessary, with individuals who may have observed the alleged conduct or may have relevant knowledge. The complaint and investigation will be handled with sensitivity, and confidentiality will be maintained throughout the investigation process to the extent allowed by law and to the extent practical and appropriate under the circumstances. Only those individuals with a "need to know" shall be informed of the findings or the extent of the investigation. All employees shall not discuss any circumstances involving the parties or matters at hand unless it is with the CRA Executive Director throughout the investigational processes. Retaliation against an individual for reporting alleged harassment or assisting in providing information relevant to a claim of sexual harassment is a serious violation of this policy and will be treated with the same strict discipline, as would the harassment itself. Acts of retaliation should be reported immediately and will be promptly investigated. In order to protect the welfare of all employees, findings of false or malicious statements intended to 3-4 3-5 harm another individual shall result in immediate disciplinary action, up to and including termination. Violations of this policy may result in disciplinary action up to and including termination. Failure to act upon gaining knowledge of violations of this policy may result in disciplinary action up to and including termination. Training shall be conducted on a periodic basis to raise awareness of harassment issues and remedies of same. Failure to truthfully cooperate with an investigation of this nature may result in disciplinary action up to and including termination. Formal Grievances It is the policy of the CRA to anticipate and avoid occurrences of formal grievances and to deal promptly with formal grievances that may arise. All formal grievances must be in writing and must include the nature of the grievance and all the facts supporting the grievance. This written document must be submitted to the CRA Executive Director. If a formal grievance is denied by the CRA Executive Director, it will be forwarded to the CRA Board for a final decision. Here the Board may want to determine if this authority is better placed in the hands of an appointed Hearing Officer that is a rnernber of a recognized national registry for arbitration/mediation (Attorney). And, if so. then the Board would want to indicate whether or not the decision of the Hearing Officer is binding on the Board. The primary purpose of this grievance procedure is to determine what is right, not who is right. Free discussion between employees and the CRA Executive Director will lead to better understanding of practices, policies and procedures, which affect employees. Discussion will serve to identify and help eliminate conditions, which may cause misunderstandings prior to the filing of written formal grievances. The CRA Executive Director shall establish rules for the processing of formal grievances. Rules may be amended from time to time, but should have as their objective the prompt and efficient disposition of a formal grievance. Formal grievances are to be initiated by employee within ten (10) working days of the event giving rise to the grievance or the grievance is waived. Once initiated the time sequence for review and response to the employee should not exceed twenty (20) working days. -r~,,, ,~,,,,i~i,,., ,,~ t~,., n-'r~,,,~,,, rc,~,_,4..,,g ~ .... ;t.-,,., ,,~ t~,,, . ..................................... r .............. Personnel Actions A. Promotion Upon promotion, an employee shall receive an increase to the minimum pay rate of the new position, or up to 10%, whichever is higher. In no case shall the new salary exceed the maximum pay established for the position. Promoted employees shall serve a ninety (90) day position probationary period and may be demoted without notice and without cause during the position probationary period. B. Demotion Upon demotion, an employee shall receive a decrease in pay of a minimum of 5%, or up to 10% if previously promoted to the higher level classification and awarded that amount for the promotion action, or greater if a higher amount of decrease is necessary in order not to exceed the maximum rate of pay for the lower level position. In no case shall the new lower pay rate exceed maximum of the pay range established for the lower level position. C. Demotion Approvals and Appeal All demotions and resulting adjustments in an employee's pay rate shall receive the prior review and approval of the CRA Executive Director. Demoted employees not serving within an established probationary period may appeal the demotion action in writing within two (2) working days of written notification of the demotion. The CRA Executive Director or designee shall schedule an appeals meeting within ten working (10) working days of receipt of the employee appeal. The written appeal must state the reason for the appeal and all facts supporting the appeal. The CRA Executive Director shall preside over the appeals meeting and render a final decision within twenty (20) working days of the ]0 appeals meeting. The demotion action shall be effected regardless of any appeal request. The demotion may then be overturned by the CRA Executive Director when a final decision has been made. 3-6 Code of Conduct & Disciplinary Provisions Purpose The CRA anticipates that its employees will conduct themselves appropriately, both on and off the job. As a service entity, we must treat our customers in a courteous and respectful manner at all times and our conduct must be consistent with the CRA's mission statement and values. We recognize, however, that there will be instances when employees may act in a manner that is not consistent with the CRA's and the CRA Board's expectations. To address these situations, a disciplinary process has been developed to enable the CRA Executive Director to resolve issues related to unacceptable performance and misconduct. The CRA's goals in establishing such a process are both to ensure that employees understand the potential consequences of inappropriate behavior and to assist them in recognizing the sevedty of such consequences, with the hope that disciplinary sanctions, if required, will encourage the individual to personally resolve whatever concerns exist with respect to either inadequate performance or personal misconduct. Provisions 1. Conduct unbecoming a CRA employee is defined as employee behavior or actions on the part of the employee which hinders or jeopardizes the successful operation of the CRA, undermines teamwork and cooperation among CRA employees, or undermines the public confidence in the CRA or its employees. Counseling and written reprimands should be utilized as an element to motivate employees to choose behavior conducive to an individual's growth, development and most importantly, to insure the successful operation of the CRA and its services. However, in certain circumstances, punitive discipline actions will be necessary. There is no "r~(ed formula" for discipline, management reserves the right and prerogative to make disciplinary decisions based on repeated occurrences of varying incidents, past performance, or sevedty of the incident. Although progressive disciplinary actions are encouraged when circumstances support such use, the severity of misconduct and the circumstances shall determine the nature of the discipline. A number of factors should be considered in determining the appropriate level of discipline to be taken at each successive step. Such factors may include time intervals between offenses, effectiveness of pdor disciplinary actions, insubordination, employee willingness to improve, overall work performance and teamwork. Certain misconduct is so contrary to the public interest that dismissal shall be the only appropriate disciplinary measure. The level of misconduct may differ in individual cases from apparently similar incidents. The CRA retains the right to treat each occurrence on an individual basis without creating a precedent for situations which may arise in the future. This case-by-case method is designed to take individual circumstances and/or mitigating factors into account. These provisions are not to be construed as a limitation upon the retained dghts of the CRA, but are to be used as a guide. The failure of immediate supervisors to document and/or take disciplinary actions for misconduct, or the failure to forward the completed disciplinary documents to CRA Executive Director or designee, shall serve as grounds for disciplinary action. After a period of one year for a Record of Discussion, two years for a Wdtten Reprimand, and five years for a Suspension, discipline will not be considered for purposes of future disciplinary actions or promotions. ]! However, these items will remain in the employee's personnel file. Verbal warnings or verbal reprimands are not considered as disciplinary action. EXAMPLES OF MISCONDUCT The following types of infractions, offenses, or misconduct shall represent employee noncompliance with rules, regulations, policies, practices or procedures of the CRA, or employee wrongs or offenses which violate permissible behaviors or are specifically prohibited by law. The listed reasons are for informational purposes only and are not meant to be exhaustive. Each disciplinary action shall be considered on a case-by-case basis. The following are examples of violations which shall result in disciplinary action: 1. Conduct unbecoming of a CRA employee, as specified in the Definitions section. Abuse of CRA policies including, but not limited to: · abuse of sick leave privileges, sick leave policy or excessive absenteeism · failure to notify CRA of current address and telephone number within ten (10) calendar days of change · failure to report any outside employment · possession of a firearm or concealed weapon on CRA property or while performing official CRA duties · suspension or revocation of any required job-related licenses or certifications · use of abusive language to or about an employee, co-worker, supervisor, or the public · insubordination, meaning the failure to recognize or accept the authority of a supervisor · threatening a co-worker or supervisor 3. Abuse of departmental procedures and work rules including, but not limited to: · failure to provide name and official title to any person requesting same when performing work related duties · habitual extension of lunch periods or break period · habitually late for work without valid reason · smoking in prohibited areas · unauthorized solicitation, posting of material, or non-productive behavior · disrupting or hindering departmental operations · outside employment which conflicts, interferes or otherwise hampers the performance of the employee in their CRA job · unauthorized personal use of CRA equipment or funds · improper use of CRA time for conducting personal or private business · other department rules as communicated by director/supervisor 4. Documented failure of a supervisor to perform duties required of supervisory employees including recommending and/or taking disciplinary actions when necessary. 5. Violation or disregard of CRA's Safety policy and procedures including: · unauthorized use or unsafe operation of CRA property, equipment or vehicles. · failure to report an on-the-job injury or accident within 24 hours to immediate supervisor · supervisor's failure to report an employee's on the job injury to the CRA Executive Director within 24 hours and/or completion of necessary documentation 6. Illegal, unethical or improper acts including: · theft or removal of CRA property without proper authorization · falsifying employment application or concealing information during pre-employment screening or processing · soliciting or accepting an unauthorized fee or gift · giving false information, or failure or refusal to fully cooperate or provide full, truthful information in CRA initiated investigations · possession, use or sale of illegal drugs, alcohol or prescription medication which alters the employee's performance on the job; or any confirmed positive drug test · possession or use of alcohol while on duty; or reporting to work under the influence of alcohol · refusal to participate, if offered, in a drug/alcohol rehabilitation program, and to sign and abide by a return to work agreement when the CRA receives positive confirmed results on any CRA ordered drug test such as workers' compensation, accident or reasonable suspicion drug or alcohol testing · refusal to submit to a CRA sponsored drug or alcohol testing such as workers' compensation, reasonable suspicion, follow up, or applicant processes · violating the CRA's Sexual Harassment policy through interaction with another employee or a member of the public PROCEDURE When an immediate supervisor becomes aware of conclusive evidence of the need for employee discipline, he/she becomes responsible and shall investigate the circumstances of the misconduct, or lack of performance, prior to deciding upon the type of disciplinary action to be recommended or taken. Documentation of the discipline investigation or of the conduct shall be required on the part of the immediate supervisor in order to establish appropriate records. The CRA Executive Director or designee will be available to assist in such investigations. In cases where investigations of a more substantial nature are required, the following types of administrative review shall be administered. Administrative Review: Investigations of non-criminal violations conducted in the absence of immediate or conclusive evidence involving any CRA employee. These investigations shall be conducted by the CRA Executive Director or designee, who shall obtain all sufficient information, including documentation and/or sworn statements, in order to determine the necessity or level of disciplinary action. The CRA Executive Director or designee shall assume responsibility for acquiring any necessary sworn statements. Administrative investigations shall be conducted expeditiously. Criminal Investigations: Investigations conducted when criminal violations are reportedly committed by any employee of the CRA. These investigations shall be conducted by the local Police Department, in collaboration with the CRA Executive Director. 2. In instances where an investigation of serious, unlawful or other extreme misconduct is necessary, administrative and/or criminal investigations shall be conducted. The immediate supervisor, with the approval of the CRA Executive Director, may initiate a three (3) working day or less suspension with pay to afford a supervisor the opportunity to investigate an alleged incident of misconduct in the absence of the employee. Suspensions with pay of more than three (3) working days require the approval of the CRA Board. This practice may also be used in the event that alleged misconduct is severe but unproven. The immediate supervisor shall immediately notify the CRA Executive Director of the choice for suspension so that the suspension may be issued and the matter may be immediately investigated. A recommendation for disciplinary action may result from the findings of an investigation. If disciplinary measures are not recommended after the investigation, the suspension with pay peded shall not be construed as disciplinary in nature. A document confirming a favorable determination as to the matter should be made a part of the employee's record. TYPES OF ACTION A. Counseling Consists of the immediate supervisor warning the employee to correct or improve performance, work habits, or behavior, and counseling the employee on improvements expected. Counseling serves as a warning against further repetition of employee behavior. Future violations will result in further discipline up to and including termination. 13 A Record of Discussion form should be completed by the immediate supervisor. The employee shall be required to sign the form signifying that he/she has read and discussed the contents with the supervisor. The Record of Discussion form shall be forwarded to The CRA Executive Director or designee for retention in the employee's records, with a copy provided to the employee. The supervisor may request that the employee complete a written action plan to correct the behavior. Employees may submit comments on a separate sheet for inclusion in the record. B. Written Reprimand Co Consists of an immediate supervisor issuing a wdtten notice of reprimand to improve performance, work habits, or behavior. A written reprimand may include a complete description of the incident(s) of misconduct, inappropriate behavior, work habits, or performance which require improvement; previous records of discussion; a time frame within which the employee must correct or improve his/her behavior; and a warning that future violations will result in further disciplinary actions up to and including termination. Written reprimands shall be signed by the employee to acknowledge receipt and forwarded to The CRA Executive Director or designees for retention in the employee's records, with a copy provided to the employee. Employees may submit comments on a separate sheet for inclusion in the record. The employee may be required to complete a wdtten plan for correction of the behavior. When the written reprimand contains a time frame for employee improvement, a follow-up discussion at the end of the designated time pedod should be conducted. This follow-up discussion will provide a specific opportunity to review the employee's improvement relative to the discipline. Written reprimands should be reflected on the employee's performance evaluation along with any noted improvements. Suspension Consists of an employee being prohibited from returning to work until the specified period of suspension has passed. If the suspension is greater than one (1) working day, it shall be issued on a consecutive working day basis. Unless provided for otherwise in this policy or disallowed by the Fair Labor Standards Act, all suspensions shall be without pay. Suspensions shall be used when an employee is removed from the job due to extreme misconduct or unlawful behavior, or when instances of previous discipline suppod a suspension for a specified pedod of time. Employees shall be suspended pending the outcome of a recommendation to terminate and shall remain under suspension until the CRA Executive Director has made a final determination in a pre- termination headng, if elected by the employee. 1. With the written authorization of the CRA Executive Director, immediate supervisors have the authority to issue a suspension for three (3) working days or less. 2. Suspensions beyond three (3) working days require prior authorization by the CRA Executive Director. Suspensions due to a recommendation to terminate only require the CRA Executive Director's approval. 3. Employees being suspended shall be notified in writing by the immediate supervisor. The written notification shall consist of the reason for the action and the duration of the suspension. It shall also include a statement that future violations will result in further disciplinary actions up to and including termination. 4. It shall be the employee's responsibility to pay for insurance benefits and/or any other payments previously paid through payroll deductions during any suspensions without pay in order to maintain such benefits during these periods. Lapses in payments may result in forfeiture of such benefits. 5. Employees may submit comments on a separate sheet for inclusion in the record. Written notification of a suspension shall be signed by the suspended employee acknowledging receipt of the ]4 written notification, and forwarded to The CRA Executive Director or designee for inclusion in the employee's records, with a copy provided to the employee. D. Demotion In the context of this policy, demotion consists of an employee being involuntarily removed from higher level classification to a lower level classification, with a resulting decrease in annual salary. Although not limited to such instances, demotions may occur in some cases because of an inability to fulfill the duties of the higher level job in a satisfactory manner; or a failure to comply with employment conditions, such as licensure or certification. In addition, dudng position probation an employee shall be subject to demotion without the CRA being required to state a reason. The employee shall not have access to any appeal process with regard to the demotion. A demotion will involve a decrease in salary of not less than 5%, commensurate with the decrease in responsibilities. Immediate supervisors should discuss the potential demotion of an employee with the CRA Executive Director or designee prior to a written recommendation for demotion. The supervisor shall then submit the written recommendation to the CRA Executive Director. Demotions require authorization from the CRA Executive Director prior to being effected. Written notification of demotions shall be provided to the employee by the CRA Executive Director. Such notices shall include the final decision, the reason(s) for the decision, the employee's new classification title, the new pay range and pay rate, and the effective date of the demotion. Written notifications shall also include that future violations will result in further disciplinary actions up to and including termination of employment. All documentation of a demotion shall be retained in the employee's file by the CRA Executive Director or designee. Employees may submit comments on a separate sheet for inclusion in their personnel file. Employees may voluntarily request a demotion to a lower level classification. Such demotion shall not be punitive. Employees may submit comments on a separate sheet for inclusion in the record. Written notification of a demotion shall be signed by the employee acknowledging receipt of the written notification, and forwarded to the CRA Executive Director or designee for inclusion in the employee's records. E. Dismissal Dismissal is a result of an employee's involuntary termination which severs the employment relationship. At such time all employee benefits cease, except as otherwise provided by law. Immediate supervisors shall supply thorough documentation and discuss recommendations for an employee's dismissal with the CRA Executive Director. Dismissals of regular employees shall be effected only with the authorization of the CRA Executive Director and review by the CRA Attorney, and ,-,otific3tio,q by the CRA Bo3rd. A written notice of the recommendation to terminate shall be given to the employee in person. However, after two unsuccessful attempts to deliver the notification, the notice shall be sent via U.S. mail to the most recent address on record in the personnel file. The recommendation shall include the following information: 1. The underlying reasons for the recommended termination. 2. Documentation upon which the supervisor relied in formulating said recommendation. An explanation of his/her dghts to request a pre-determination headng pdor to the recommendation to terminate being decided upon by the CRA Executive Director and the fact that the decision of the CRA Executive Director shall be final. If an employee does not exercise their dght to a pre- determination hearing, the termination will become effective after the expiration of the two (2) working day pre-termination election pedod. ]5 If the employee elects a pre-determination hearing, the CRA Executive Director shall schedule such hearing within ten (10) working days to occur within thirty (30) of the employee's election for such hearing. It the employee does not elect the pre-determination hearing within two (2) working days, the CRA Director will render a decision on the recommendation for termination. If the CRA Executive Director authorizes the termination, a notification letter shall be delivered to inform the employee of the decision and to provide notice of the employee's right to a post- termination Formal Hearing. The terminated employee must elect the Formal Hearing within two (2) working days of the date of the notification letter. Whether the CRA Board's final determination is dismissal or a lesser form of discipline with reinstatement at the same or lower level position, the recommendation to terminate and the CRA Executive Director's notification letter shall be placed in the employee's personnel file, and a copy shall be forwarded to the employee. Employees may submit comments on a separate sheet of paper for inclusion in their personnel file. Here the Board may want to determine if this authority is better placed in the hands of an appointed Hearing Officer that is a member of a recognized national registry for arbitration/mediation (Attorney). And if so, then the Board would want to indicate whether or not the decision of the Hearing Officer is binding on the Board. Initial probationary employees who have not successfully completed the established probationary pedod shall be subject to dismissal without cause and it shall be effective after authorization by the CRA Executive Director. At the time of dismissal, employees are required to surrender to their supervisor or designee all CRA property which may be in their possession or custody and all other conditions for termination must be complied with pdor to issuance of final wages. INEFFICIENCY OR INCOMPETENCE The inefficiency or incompetence in the performance of assigned duties may result in demotion or disciplinary action up to and including termination. Examples of poor performance shall include failure to provide responsive, courteous, high quality customer service or repeated failure to support team goals and contribute to team Success Employees who receive an OVERALL "Below Expectations" evaluation shall be given a follow-up evaluation within sixty (60) calendar days of the initial "Below Expectations" evaluation. More than one overall rating of "Below Expectations" may subject the employee to demotion or disciplinary action up to and including termination. It is the responsibility of every employee to perform at a minimum level of "Meets Expectations". ]6 CRA RECORD OF DISCUSSION FORM EMPLOYEE TITLE SUPERVISOR NAME REASON FOR INTERVIEW: COMMENTS: EMPLOYEE'S SIGNATURE DATE SUPERVISOR'S SIGNATURE SUPERVISOR'S NAME, TITLE DATE 17 Section 4: CLASSIFICATION & PAY PROVISIONS 4-1 Classification Provisions Purpose of the Classification Plan The classification plan provides for a systematic arrangement of positions. The plan groups related positions into classifications with a similar range of duties, level of responsibility, and nature of work performed. Two or more classifications that are similar in type of work, but differ significantly as to the level of responsibility and difficulty, may be grouped as a classification series. 4-2 Pay Provisions Purpose of the Pay Plan The pay plan shall provide the basis of compensation for all employees and shall be administered and recommended for revision as appropriate by the CRA Executive Director. The Pay Plan shall include: 1) Tables of basic pay rates 2) Schedules of pay grades for each title in the classification plan consisting of the minimum and the maximum hourly rate, and/or annual salary. 3) Identification of non-exempt and exempt classifications. 4-3 Hours of Work/Overtime/Compensatory Time A. Hours of Work Hours of work will be determined by the CRA Executive Director, subject to the approval of the CRA Board and shall be uniform for all employees and be determined in accordance with the needs of the services and operational needs of the CRA. As a public employer, situations may adse that may require employees to work overtime without notice. All employees are required to work overtime when notified by the CRA Executive Director of the need to work. The initial office hours of operation shall be from 8:00 a.m. to 5:00 p.m., Monday through Fdday except for approved holidays. Overtime Overtime hours are hours actually worked by non-exempt employees in excess of a forty (40) hours per workweek and must be authorized in advance by the CRA Executive Director before such overtime is permitted. The established workweek is Friday 12 a.m. through Fdday 11:59 p.m. for FLSA purposes. Non-exempt employees are given compensatory time for overtime hours worked at the rate of time and one-half hours for all authorized time actually worked in excess of forty (40) hours a week. Hours that shall count towards overtime calculations only include those hours "actually" worked. Annual leave, sick leave, holiday pay, suspensions with pay, workers compensation leave, family medical leave, funeral leave, jury duty, annual military leave and other absences from work while in active pay status will not be counted as time actually worked for purposes of determining whether ovedime has been worked in excess of forty (40) hours per week. Compensatory Time as Payment for Overtime Hours Worked 1. Compensatory time shall be awarded and earned at 1.5 hours for every hour of overtime worked above 40 hours in lieu of cash compensation in accordance with FLSA. Cash payments for overtime compensation may be authorized at the discretion of the CRA Executive Director. Accruals of compensatory time may be accrued up to 80 hours and may be used by the employee provided reasonable notice has been given to the CRA. Exempt employees are expected to work the necessary hours to complete their assignments and are ineligible for overtime. Special leave time may be granted to exempt employees up to 40 hours annually in recognition of their dedicated services to the CRA. Section 5: EMPLOYMENT CONDITIONS 5-1 5-2 Outside Employment Employees may engage in outside employment dudng off-duty hours when such employment does not in any way interfere or create a potential conflict of interest with their CRA employment. An employee, who wishes to engage in any outside employment including self-employment, shall provide information concerning the proposed employment to the CRA Executive Director for approval pdor to engaging in outside employment. CRA Equipment The personal use of any CRA equipment, such as computers, tape recorders, cameras, tools, vehicles, etC., shall be prohibited unless otherwise approved in advance by the CRA Executive Director. In addition, employees are not to use any CRA e-mail addresses for receipt of personal mail. 5-3 Address and Telephone Number Employees are required to report any change in address or telephone number to the CRA Executive Director within ten (10) working days of the change. Failure to comply with this requirement may result in disciplinary actions up to and including termination. The employee shall also maintain on a current basis the name. address and telephone number of the person(s) to contact in case of emergency. Political Activity No CRA employee shall take any active part in political campaigns or other political activities during duty hours. In accordance with Flodda Statutes, as amended, employees are prohibited from engaging in certain types of political activities while either on or off duty. Employees, in their pdvate capacities, may express their opinions on any political candidate or issue and/or participate in campaigns dudng their off-duty hours; however, they are prohibited from using their official authority or influence or appearance of doing so through the wearing of CRA uniforms or official attire, or in CRA vehicles while participating in political campaigns, for the purpose of aiding or interfering with an election or nomination, or coercing or influencing another person's vote or affecting the result thereof. No buttons, bumper stickers, pins, or any political signage shall be adhered to CRA vehicles, or wom during the workday while on the job, or worn on CRA official attire, or posted on or about CSA premises. Nothing herein shall be construed to prohibit an employee's dght to engage in casual workplace discussions on social or political topics, so long as such discussions do not, in the judgment of management of the CRA, interfere with the orderly, peaceful, and efficient performance of assigned duties or with the valid exercise of authority of management. ]9 5-5 Resignation Resignation is the voluntary separation of an employee from employment accomplished by serving a wdtten notice expressing a decision to end employment with the CRA. Such written notice shall be deemed to be accepted immediately. An employee who wishes to leave in good standing shall provide at least two (2) weeks notice, before leaving. Resignations may be rescinded only with the written approval of the CRA Executive Director. Employees that fail to report to work or fail to call in absent to their supervisor for three (3) consecutive working days shall be deemed as having voluntarily resigned from employment. 5-6 Drug Free Workplace POLICY As part of our commitment to safeguard the health of our employees, to provide a safe place for our employees to work, and to promote a drug free community, the CRA has established a Drug Free Workplace prohibiting the use or abuse of alcohol and drugs by employees. In the spidt of safety, employees are expected to support our drug free workplace. Substance abuse, while at work or otherwise, seriously endangers the safety of employees, the general public, and creates a vadety of workplace problems including a decline in the quality of products and services provided. Employees injured in the course and scope of employment that test positive on drug or alcohol tests may forfeit medical and indemnity benefits under Florida's Workers Compensation. Refusal to take drug or alcohol tests also results in forfeiture of medical and indemnity benefits under Florida's Workers Compensation and automatic termination of employment. Reasonable assistance is offered to employees who voluntarily recognize a substance abuse problem. However, performance standards are upheld even if 'Below Expected' performance is related to drug or alcohol use; such instances result in disciplinary actions. Violations of the Drug Free Workplace policy are not tolerated and result in disciplinary actions up to and including termination. Section 6: EMPLOYEE BENEFIT PROGRAMS 6-1 Veeafie Annual Leave Purpose of Vasatie~ Annual Leave The purpose of annual leave is to provide regular full-time exempt and non-exempt employees with an opportunity to be absent from work for approved reasons without loss of pay or benefits. Accrual Rate and Maximum Accrual Annual leave is accrued based on the employee's length of service with the CRA. New employees accrue annual leave days retroactive to their hire date and may begin to use such annual leave accrual upon completion of the ninety (90) day probationary period initiated with the employee's first day of employment. Accrual rate, as outlined in the following table shall occur from the date of initial employment and accrue per completion of the established pay period cycle. All references to "years of service" are defined as "continuous" years of service for the purposes of this policy. 20 Years of Service Annual Accrual 1 year 1.85 Greater than 1 year, less than 5 years 3.08 Greater than 5 years, less than 10 years 4.62 Greater than 10 years 6.15 Annual Hours 48 8O 120 160 For purposes of consistency, HRMP recommends the Board consider one of the following schedules. Sick accrual is "monthly", yet annual leave accrual is based on the payroll cycle. We recommend all accrual systems be linked to the payroll cycle for this reason. The following recommendations are based on the results of the market survey, all of which are app~tCpriate and will provide for consistency. Compare to the above schedule provided HRMp at the February 27 workshop. The last option outlined below is most closely aligned with the competing labor market in the public sector. HRMP developed this last option because currently the sick leave accumulation in year 1 is at a greater rate than annual leave. 6-2 Years of Service Annual Annual Annual Accrual Hours Days 0 up to completion of 1 year 1 54 40 5 Greater than 1 year, less than 5 years 3.08 80 10 Greater than 5 years, less than 10 years 4.62 120 15 Greater than 10 years 6 15 160 20 Years of Service Annual Annual Annual Accrual Hours Days 0 up to completion of 1 year 1.85 48 6 Greater and 1 year, less than 5 years 3.69 96 12 Greater than 5 years, less than 10 years 523 136 17 Greater than 10 years 6 46 t68 21 Years of Service Annual Annual Annual Accrual Hours Days Upon hire up to tess than 5 years 3.69 96 12 Greater than 5 years, less than 10 years 4.62 120 15 Greater than10 years, less than 15 years 5.54 144 18 Greater than 15 years 6.46 168 21 Employees may accrue annual leave to a maximum of the leave earned in the most recent two (2) employment years not to exceed 240 accrued and unused hours. Annual leave accrued during January 1 - December 31 may exceed this stated policy, however, any amount over the accrued amount of the two (2) most recent employment years maximum that has not been used dudng that term (January I - December 31) will be forfeited as of the beginning of the first full payroll period of the new payroll year. Sick Leave As each payroll cycle passes, a regular full time exempt or non-exempt employee accumulates 3.69 hour of sick leave constituting a maximum of ninety-six (96) hours of sick leave accrual possible per year. Sick leave with pay shall be computed from the hire date of the employee with unlimited accumulation of sick leave. Here the Board should consider no longer allowing for "unlimited accumulation". The majority of the public sector market limits sick leave accumulation to 480 hours (60 working days). 2] This is the typical elimination (waiting) period for employees to transition to a long-term disability policy in the event that the employee has a serious illness or disability. Unlimited accumulation of sick leave creates a potential liability pool of "unused yet allocated time" which serves no viable purpose for the employer's operations. This is especially important because, from HRMP's understanding, the Board intends to institute a long-term disability policy for staff. .An employee will be granted sick leave if the employee's absence from work is necessitated by one (1) of the following reasons: 1) Employee's health or the health of an immediate member of the employee's family. (For purposed of this section, "immediate family" is defined under Definitions, Section 1-4). 2) Medical, dental or optical treatment, which is necessary during working hours. 3) Quarantine due to exposure to a contagious disease. 6-3 All requests for more than three (3) consecutive days of sick leave must be accompanied by a doctor's certificate explaining the absence and/or unfitness for duty. If excessive sick leave is taken in such a way as to indicate a pattern, random or otherwise, the employee will be placed on restricted sick leave and a doctor's certificate will be required for a one-day absence. Holidays The following holidays will be observed each year: New Years Day (January 1) Martin Luther King's Birthday (as designated) President's Day Memodal Day Independence Day Labor Day (First Monday in September) Veterans Day (as designated) Thanksgiving Day (Fourth Thursday in November) Thanksgiving Fdday One-half (1/2) day on Christmas Eve Christmas Day (December 25) One-half (1/2) day on New Years Eve The CRA Board reserves the dght to declare these and any other holidays on a date designated by the CRA board; such dates do not necessarily have to be on the specified traditional date, but on the date that meets the best interest of the CRA. Regular full time Employees shall be paid for the legal holidays at their current pay rate. Regular full time Non-exempt employees who work on a holiday shall also be paid for their holiday plus the time worked at straight time. Regular full-time employees must be in pay status during regular workdays immediately before the holiday and after the holiday in order to receive pay for the holiday. Part-time, temporary, and emergency appointed employees are not entitled to holidays with pay. 22 6-4 6-5 Compassionate Leave Employees may be granted by the CRA Executive Director, upon request, five (5) working days of compassionate leave with pay due to a death in an employee's immediate family. Employees may be granted by the CRA Executive Director upon request, three (3) working days of compassionate leave with pay due to a death of an employee's relative, (For purposes of this section, "immediate family" and "relative" are defined under Definitions, Section 1-4). Under extreme circumstances and with the agreement of CRA Executive Director, the leave may be extended. Jury Duty Any employee summoned for jury duty or to be a witness related to CRA business shall comply with such summons without loss of pay. Any compensation received as a result of compliance with such summons shall be returned to the CRA, less any amount attributable to an allowance for mileage. If an employee is summoned to appear for jury duty or as a witness, the employee must notify the CRA Executive Director immediately. An employee receiving a witness summons for non-CRA business must use accrued vacation pay to cover the work hours missed. 6-6 Military Leave The CRA recognizes an employee's responsibility to fulfill U.S. Military Armed Forces obligations or annual training sessions or active duty call-up and provides this benefit to eligible employees. All actions regarding military leave shall be governed by Florida Statute 115 as amended. 6-7 Short Term Disability Regular full time Exempt and Non-exempt employees may experience illness or disability requiring that an employee is not able to work for a duration of time that may or may not be defined at the onset of the illness or disability. Employees under a physician's care that require an extended duration of time away from work due to such illness or disability will have their positions (or a position of equal compensation and comparative duties/responsibilities) held for a maximum of sixty (60) working days, constituting a total of 480 hours. This allowable number of days/hours coincides with the rnaximum accumulation for unused sick leave as established in Section 6-2. Employees exercising provisions of this section may continue their regular compensation through use of the employee's accrued sick, annual, and/or any otherwise authorized accumulated/credited leave time that has been earned/accrued by the employee and recorded by the CRA, Employees that do not return to work at or prior to the expiration of the allowable 480 hours will be deemed to have abandoned their position with the CRA. 6-8 Long Term Disability ']-he CRA provides a Long Term Disability policy to regular full time Exempt and Non-exempt employees. All provisions as set forth in the insurance carrier's written policy shall prevail over any other policy, written or verbal. 6-9 Leave Without Pay 23 A regular full time exempt or regular non-exempt employee may be granted leave of absence without pay for a period not to exceed sixty (60) working days (480 hours) ene-(4-)-year for illness, disability or other reasons. Such reasons, other than physician attended illness or disability, must be outlined in writing and submitted to the CRA Executive Director for review and approval or denial. Employees may not be employed elsewhere during an authorized Leave Without Pay period of time. Such leave shall require the prior approval of the CRA Executive Director and the CRA Board. Employees that are on approved leave of absence without pay will be responsible for paying the prerniunqs and/or other established payroll deduction requirements for continuation of benefits. Employees will not continue to receive time accrual for any benefits during the duration of the Leave Without Pay Period, except as may be provided for under State and/or Federal Law, 6-10 Medical and Dental Insurance The CRA will .....~, v.~'~'~,~ offer regular full time employees ,-,~*~'...... medical and dental insurance coverage ~ comparable to those programs offered by the City of Boynton Beach to their regular full time budgeted employees. The 6erktmller CRA Executive Director or designee will perform a review for the medical and dental insurance coverage every year and provide the CRA '"._x=c,..~.iv= Di:~cr Board with the information to make an informed decision on the selection of medical and dental insurance coverage for the CRA staff. The CRA will cover the cost for exempt and non-exempt full time employee medical and dental insurances. The CRA employee will cover any additional cost for any additional coverage selected for spouse and/or children of the employee. Employees on approved leaves of absence must pay the non-subsidized rate for all insurances in effect during their leaves of absence. 6-11 Retirement All regular full time exempt and non-exempt employees will be eligible to participate in a retirement beneffis plan after one (1) year of continuous employment. Each employee will set up his/her own IRA account and then provide that information to the Controller. The CRA will match up to 5% of the employee contribution. The employee will be considered 100% vested after five (5) years. HRMP is not in a position to advise the Board on proper retirement vehicles for CRA staff. The attached market survey shows what other independent agencies provide as well as what the municipally administered CRA's provide. HRMP recommends, however, that the Board explore the possibility of allowing the City of Boynton Beach to set up an ICMA 401a (money purchase) for CRA staff. Finally, HRMP recommends that a vest schedule be structured for whatever retirement vehicle ~s considered. The vest schedule, which is typically between 5 and 7 years, allows an employer to recover a portion of the employer's contributions in the event that an employee separates from the employer prior to completion of the vest schedule. In HRMP's experience, we have found that executive vesting occurs on a accelerated basis in these plan types. Other plan types often show a greater contribution rate for executive classifications as well. Depending on the plan type(s) selected, the Board will want to consider such provisions for the Executive Director classification (and any potential Assistant Director classification), 24 ~._> E E :,,- o o'~ o o o~ t..- -r-.o ~r~o ~ o ~ 0 ~ o(~ n 2: 0 Community Redevelopment Agency Pay Plan 2002-2003 Job Title Annual Minimum Annual Midpoint Annual Maximum CRA Director $80,000 $87,500 $95,000 Controller $40,000 $47,500 $55,000 Administrative Assistant $35,000 $42,500 $50,000 Secretary $20,000 $27,500 $35,000 Non-exempt positions will be defined by the CRA Executive Director as needed and approved according to the hiring process of the CRA. BBCRA Market Survey Comparable Public Sector Market Data Palm Beach County Min Mid Max Min Mid Max Boca Raton, City of Boynton Beach, City of 23,86Q 28,632 35,79C Delray Beach 20,42§ 25,656 30,886 16,640 20,800 31,200 Greenacres 26,776 27,446 28,115 Highland Beach Juno Beach Jupiter 24,658 30,823 36,988 Lake Park 20,132 24,229 28,326 Ocean Ridge Palm Beach County 23,657 29,769 35,882 Palm Beach County Sheriff 24,876 30,924 36,972 Palm Beach Gardens Palm Beach, Town of PB County Tax Collector Riviera Beach 22,426 28,593 34,760 21,000 25,000 33,000 Royal Palm Beach Wellington, Village of 22,838 26,572 34,258 West Palm Beach Broward County Broward Community College Broward County Sheriff 25,188 31,201 37,214 Coconut Creek, City of Coral Springs, City of 25,000 30,000 35,000 Davie 26,104 30,543 34,982 Deerfild 25,987 32,484 38,981 Fort Lauderdale 27,186 31,876 36,566 Hallandale Beach, City of 25,501 28,122 31,824 Hollywood, Beach District Hollywood, Downtown District Hollywood 24,31.~ 28,99.~ 33,67~ Lauderhill Margate Miramar, City of North Lauderdale 24,808 28,269 34,198 Pembroke Pines Plantation 25,735 30,06(~ 34,397 Pompano 26,413 31,789 37,164 Sunrise 22,826 26,763 30,699 Tamarac, City of 22,073 26,944 31,815 Wilton Manors, City of Min Mid Max Min Mid Max AVERAGES 24,323 29,033 34,214 18,820 22,900 32,100 MEDIAN 24,808 28,995 34,760 18,820 22,900 32,100 BBCRA Pay Range 20,000 27500 35,000 20,000 27500 35,000 % difference vs Average -22% -6% 2% 6% 17% 8% % difference vs Hedian -24% -5% 1% 6% 17% 8% HR Management Partners, 5/2003 1 BBCRA Market Survey Comparable Public Sector Market Data Palm Beach County Min Mid Max Min Hid Max Boca Raton, City of 27,009 35,957 44,906 Boynton Beach, City of 29,579 35,49~ 44,36~c Delray Beach 27,144 34,112 41,08C 31,200 41,600 49,920 Greenacres Highland Beach 34,78(] 44,131 53,481 Juno Beach Jupiter 30,28(] 37,85(] 45,421 Lake Park Ocean Ridge 34,563 39,338 44,113 Palm Beach County 31,809 40,026 48,243 Palm Beach County Sheriff Palm Beach Gardens Palm Beach, Town of 35,992 46,743 55,157 PB County Tax Collector 31,657 38,780 45,904 Riviera Beach 34,067 43,436 52,804 35,000 38,000 45,800 Royal Palm Beach Wellington, Village of 30,085 35,356 45,568 West Palm Beach 30,358 37,948 45,537 Broward County Broward Community College 27,200 35,700 44,200 Broward County Sheriff 31,365 40,011 48,657 Coconut Creek, City of 32,157 40,280 48,402 Coral Springs, City of 30,000 36,500 43,000 Davie 39,982 46,780 53,579 Deedild Fort Lauderdale 41,413 49,244 57,075 Hallandale Beach, City of 33,4261 36,920 41,746 Hollywood, Beach District 32,000 41,000 50,000 Hollywood, Downtown District 35,000' 40,000 45,000 Hollywood 32,032 38,16~ 44,30zl Lauderhill Margate Miramar, City of 32,909 41,79~ 50,68(; North Lauderdale Pembroke Pines 34,944 43,087 51,23(] Plantation 37,475 44,562 51,65(] Pompano Sunrise Tamarac, City of 30,886 39,766 48,645 Wilton Manors, City of 31,653 37,984 44,314 Min Hid Max Min Mid Hax AVERAGES 32,511 39,999 47,763 33,300 40,150 47,680 MEDIAN 31,809 39,338 45,904 33,500 40,500 47,860 BBCRA Pay Range 35,000 42500 50,000 35,000 42500 50,000 % difference vs Average 7% 6% 4% 5% 6% 5% % difference vs Median 9% 7% 8% 4% 5% 4% HR Management Partners, 5/2003 2 BBCRA Market Survey Comparable Pub#c Sector Market Data Palm Beach County Hin Mid Max Min Mid Max Boca Raton, City of 35,32c~ 47,102! 58,874 Boynton Beach, City of Delray Beach Greenacres Highland Beach Juno Beach Jupiter Lake Park Ocean Ridge Palm Beach County Palm Beach County Sheriff Palm Beach Gardens 36,504 47,26~ 58,032 Palm Beach, Town of PB County Tax Collector Riviera Beach Royal Palm Beach Wellington, Village of West Palm Beach 38,861 48,576 58,291 Broward County Broward Community College Broward County Sheriff Coconut Creek, City of Coral Springs, City of Davie 43,237 50,590 57,942 Deedild 39,618 49,522 59,426 I Fort Lauderdale 'Hallandale Beach, City of 34,278 37,835 42,786 Hollywood, Beach District 40,000 50,000 60,000 Hollywood, Downtown District 28,000 32,000 36,000 Hollywood 33,675 40,134 46,592 Lauderhill 35,498 41,888 50,761 Margate Miramar, City of 34,532 43,856 53,179 North Lauderdale Pembroke Pines Plantation Pompano Sunrise Tamarac, City of 33,26(; 42,822 52,38~ Wilton Manors, City of Min Mid Max Min Mid Max AVERAGES 36,479 44,959 53,827 34,000 41,000 48,000 MEDIAN 35,414 45,479 55,561 34,000 41,000 48,000 BBCEA Pay Range % difference vs Average ~OIV/01 #DIV/01 #DIV/0! #DIV/0! #DIV/0! #DIV/01 % difference vs Median #DIV/0! #DIV/01 #DIV/0! #DIV/01 ~DIV/0! #DIV/01 HR Management Partners, 5/2003 3 BBCRA Market Survey Comparable Public Sector Market Data ,Palm Beach County Min Mid Max Hin Mid Max Boca Raton, City of Boynton Beach, City of Delray Beach 45,000, 55,000 65,000 Greenacres Highland Beach Juno Beach 42,991 54,312 65,632 Jupiter 43,40¢ 44,87~c 53,854 Lake Park Ocean Ridge Palm Beach County Palm Beach County Sheriff Palm Beach Gardens Palm Beach, Town of 38,66~ 50,22{] 59,25~ PB County Tax Collector Riviera Beach 38,165 48,66{] 59,156 35,000 40,000 47,500 Royal Palm Beach Wellington, Village of 39,968 46,995 60,61(] West Palm Beach 42,895 53,61§ 64,343 Broward County Broward Community College Broward County Sheriff 36,278 46,279 56,280 Coconut Creek, City of 41,350 49,992 58,635 Coral Springs, City of Davie Deerfild Fort Lauderdale 43,514 51,740 59,966 Ha llandale Beach, City of 44,970 49,670 56,160 Hollywood, Beach District Hollywood, Downtown District Hollywood Lauderhill Margate Miramar, City of North Lauderdale Pembroke Pines 41,62¢ 51,39(~ 61,172 Plantation Pompano Sunrise 45,33~ 53,92C 62,501 Tamarac, City of Wilton Manors, City of Min Hid Max Mlin Mid Mlax AVERAGES 4~.,597 50,140 59,797 40,000 47,500 56,250 MEDIAN 42,258 50,~.06 59,613 40,000 47,500 56,250 BBCRA Pay Range 40,000 47500 55,000 40,000 47500 55,000 % difference vs Average -4% -6% -9% 0% 0% -2% % difference vs Median -6% -5% -8% 0% 0% -2% HR Management Partners, 5/2003 4 BBCRA Market Survey Comparable Public Sector Market Data palm Beach County Min Mid Max Min Mid Max Boca Raton, City of 83,672 97,648 111,623 Boynton Beach, City of Delray Beach 70,000 95,000 120,000 Greenacres Highland Beach Juno Beach Jupiter 69,638 87,048 104,458 Lake Park Ocean Ridge Palm Beach County 69,145 87,006 104,867 Palm Beach County Sheriff Palm Beach Gardens Palm Beach, Town of PB County Tax Collector Riviera Beach 100,000 125,000 150,000 Royal Palm Beach Wellington, Village of West Palm Beach 72,406 90,057 108,069~ Broward County Broward Community College Broward County Sheriff Coconut Creek, City of 72,351 94,69.; 117,03c. Coral Springs, City of 69,00(; 86,00(; 103,00(; Davie 70,917 82,97~ 95,03~ Deerfild Fort Lauderdale Hallandale Beach, City of Hollywood, Beach District 62,000 87,000 112,000 Hollywood, Downtown District 90,000 100,000 110,000 Hollywood Lauderhill Margate Miramar, City of 76,712 97,425 118,137 !North Lauderdale Pembroke Pines Plantation Pompano Sunrise 76,152 90,564 104,976 Tamarac, City of 64,000 82,400 100,800 Wilton Manors, City of Hin Mid Max Min Mid Hax AVERAGES 72,399 89,582 106,800 80,500 101,750 123,000 MEDIAN 71,634 88,553 ~04,922 80,000 97,500 116,000 BBCRA Pay Range 80,000 87500 95,000 80,000 87500 95,000 % difference vs Average 10% -2% -12% -1% -16% -29% % difference vs Median 10% -1% -10% 0% -11% -22% HR Management Partners, 5/2003 5 (J MEMO TO: CRA Board FROM: Susan Vielhauer SUBJECT: Human Resources Manual DATE: May 5, 2003 Staff has distributed the Human Resources Material from Lori Barefoot of HRMP to the CRA Board. Staff has several concerns with the materials presented. Staff is requesting that the CRA Board does not accept this as policy without further analysis and input. 1611 85/8§/2083 14:31 5616591482 BURKHARDT CONST INC PAGE 82 BURKHARDT CONSTRUCTION, INC. Boynton Beach Communfly Redevelopmerxt Agency 639 East Ocean Avenue Boyn~n Beach, FL 33435 Attn: Douglas Hutchinson, Director Re: BBB 2003-1 100% Desi/n-Bu/ld Services April 14, 2003 Mr. Huichinson: Attached please find the "Standard Form of Agreement between Owner and Design/Builder for Preliminary Services" for thc above referenced project, This agreement is the first in a series of contractual steps which will ultimately comprise the entirety of the 100% design-build services to be delivered by. Burkhardt Construction, [nc, This initial phase proposal takes us through the 30% design package. Once completed and signed offby Owner, we will then prepare a Phase II proposal to complete the design package. Once ,,the 100% design package has been completed and signed off by Owner, we will then prepare a Phase III proposal to implement the construction portion of the project. Each phase builds on the discoveries and Owner requirements of the previous phase, This pwcess provides for an increased level of Owner input throughout the design-build project. The intent of these documents is to provide a 100% design-build services package in segments which enable the Owner to provide input, exercise control and be aware of' developments throughout the project. Should you have any questions please contact us. 1619 Dennis E. Haynes, Vice President 1400 Alabama Avenue · West Palm Beaoh, Florida 33401 · (561) 659-1400 * Fax (561) 659-1402 Memo To: From: Subject: ~oP~u g~a~a rHdutch inson(~ Consideration of contract with Kimley -Horn/Burkhardt Construction for Design Build of Boynton Beach Boulevard Extension, romenade and River Walk. Date: May 8, 2003 Please find attached the contract for your consideration of approval. enclosed draft has been reviewed by Staff and the CRA's legal staff. The 1618 85/85/2883 I4:31 5616591402 BURKHARDT CONST INC PAGE 63 CRy of Boynton Beach Commun/ty Redevelopment Agency Project BBB 2003-1 00% Design/Build Services Conu'act Analysis We have executed and present two different des/gn/bu/ld contract agreements for your review. First it should be known that Burkhardt Construction, Inc. is willing to enter into either of these agreements as des/red by thc board, Both agreements get us to the same end result, they just go about it in different ways. The E/CDC-D-5 ! O_agreement is a prelim/nary services contract proposal to carry. design to 30%. This is the first in a complete family of contract documents which progress through segmented steps, each build/ng on the results ofthe previous, to ultimately deliver the 100% design/build services program which we have been selected to prov/de. Thc F--~CDC-D_-.5,10 agreement does not initially address the total desi!,m/build cost. Due to the Fact that schemaiic or conceiX drawings render the total cost virtually undefineable, As Design/Builder client meetings progress and permitting issues are resolved, the scope and definition of the work ga/ns clarity and pricing can begin. The final price for construction is established based on completed drawings which have been signed offby the Owner and reflect the features desired by the Owner, The sta. ndard .desi_~a/buiid conWact.do~um_~l, defines the work scope from initial design through finished construction in one document. The standard desi_mVbuild ~ntract document establishes the total lump sum pr/ce /'or the entire design/build contract prior to schematic design cr/teria package. It should be noted that many items from Owner desired features, to new and existing utilities, to permitting requirements are at this point unknown, Each of these items can wildly affect the cost of the project. The S__mndard desi_~u~ouild contract docunl, ent speaks less to the Owner's involvement and oversight during the design process. The standard design/build, contract document puts a greater project management and oversight requirement on the Owner. This is certainly attainable within the City of Boynton Beach's project management structure. However, it is a staffing requirement which the C.R.A. does not currently have in place, 1620 05/05/2003 i4:31 5616591402 BURKHARDT CONST INC PAGE 04 Again, either conmtct is pcrfcctly suitable to achieving the goal of 100% design/build services. Wc simply wish to point out the strengths and wcakncsses of each so you as a governing board can make an informed decision. 1621 DESIGN-BUILD AGREEMENT BETWEEN BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY BOYNTON BEACH, FLORIDA BURKHARDT CONSTRUCTION, INC. FOR PROMENADE AND SIDEWALK PROJECT 1622 TABLE OF CONTENTS Sec. 1 Sec. 2 Sec. 3 Sec. 4 Sec. 5 Sec. 6 Sec. 7 Sec. 8 Sec. 9 Sec. 10 Sec. 11 Sec. 12 Sec. 13 Contract Documents Scope of Work Contract Amount Bonds Contract Time and Liquidated Damages Exhibits Incorporated Notices Modification Successors and Assigns Governing Law and Venue No Waiver Entire Agreement Severability PAGE 1 1 4 4 4 5 5 6 6 6 6 6 6 1623 Exhibits Exhibit A/General Terms and Conditions 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Intent of Contract Documents Investigation and Utilities Progress Payments Payments Withheld Final Payment Submittals and Substitutions Daily Reports, As-Builts and Meetings Contract Time and Time Extensions Changes in the Work Claims and Disputes Other Work Indemnification and Insurance Compliance with Laws Cleanup and Protections Assignment Permits, Licenses and Taxes Termination for Default Termination for Convenience and Right of Suspension PAGE 8 8 8 9 10 10 11 12 13 14 15 15 16 18 18 18 18 19 20 1624 Exhibits 19. Completion 20. Warranty 21. Tests and Inspections 22. Defective Work 23. Supervision and Superintendents 24. Protection of Work 25. Emergencies 26. Use of Premises 27. Safety 28. Project Meetings Exhibit B/Performance and Payment Bond Performance Bond Payment Bond Exhibit C/Insurance and Safety Exhibit D/Release and Affidavit Exhibit E/Form of Contract Application for Payment Exhibit F/Change Order PAGE 20 21 22 22 24 24 24 24 25 25 27 27 30 33 40 42 43 1625 b. PHASE 2 - DESIGN DEVELOPMENT (100% DESIGN) Upon approval of Schematic Designs and authorization fi:om the BBCRA to proceed, the Contractors Architect/Engineer shall prepare Design Development documents to fix the size and character of the Project as to structural, mechanical and electrical systems, materials and other appropriate essential items in the Project. These Development Documents are the basis for the design and construction of the Project. C. PHASE 3 - WORKING DRAWINGS AND SPECIFICATIONS From approved Design Development Documents the Contractor's Architect/Engineer will prepare working Drawings and Specifications setting forth in detail the requirements for the construction of the Project, and based upon codes, laws or regulations which have been enacted at the time of their preparation. 3) The Contractor, its Architect/Engineer and the BBCRA will work closely together to monitor the design in accordance with prior approvals so as to ensure that the Project can be constructed within the [ ] Sum as defined in Section 3. As these working Drawings and Specifications are being completed, the Contractor will keep the BBCRA advised of the effects of any BBCRA requested changes on the Contract Time Schedule and/or the Lump Sum. Construction of the Project shall be in accordance with these Drawings and Specifications as approved by the BBCRA. The Drawings and Specifications shall remain the property of the BBCRA however, said plans are not to be used by the BBCRA on other projects without the prior written consent of the Contractor. 4) After the completion of any Phase as set forth above in Section 2. B., paragraphs 2) a., b., and c., if the Project is no longer feasible fi:om the standpoint of the BBCRA, the BBCRA may terminate this Agreement and pay the Contractor pursuant to Section 19.1 of the General Conditions. C. Responsibilities of Contractor With Respect to Construction. a. PHASE 4 - CONSTRUCTION 1) The Contractor will provide all construction supervision, inspection, labor, materials, tools, construction equipment and subcontracted items necessary for the execution and completion of the Project. 2) The Contractor will pay all sales, use, gross receipts and similar taxes related to the Work provided by the Contractor which have been legally enacted at the time of execution of this Agreement and for which the Contractor is liable. 3) The Contractor will prepare and submit for the BBCRA's approval an estimated 1627 2 AGREEMENT BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA, ("BBCRA"), hereby contracts with BURK_,x-IARDT CONSTRUCTION, INC. ("Contractor"), a Florida corporation for profit, to perform all work ("Work") in connection with Promenade and Riverwalk Project ("Project"). SECTION 1. CONTRACT DOCUMENTS. A. The Contract Documents consist of this Agreement, the Exhibits described in Section 6 hereof, Change Orders, Work Directive Changes, Field Orders and amendments relating thereto. All of the foregoing Contract Documents are incorporated by reference and made a part of this Agreement (all of said documents including this Agreement sometimes being referred to herein as the "Contract Documents" and sometimes as the "Agreement"). A copy of the Contract Documents shall be maintained by Contractor at the Project site at all times during the performance of the Work. B. BBCRA shall furnish to the Contractor up to one (1) set of the Contract Documents for execution of the Work. Additional copies of the Contract Documents shall be famished, upon request, at the cost of reproduction. SECTION 2. SCOPE OF WORK. A. Generally, Contractor will provide all planning design and architectural/engineering services required for the proper design and construction of the Project. B. Contractor's Responsibility with respect to Design. 1) In fulfilling its obligations under this Section, Contractor or Contractor's Engineer shall employ Engineers of the appropriate specialties for proper preparation of the project drawings and specifications, including structural, mechanical, electrical, soils (excepting existing environmental contamination and based upon soil boring reports furnished to Contractor by BBCRA), civil and such other specialties as are reasonably required. All such services shall be performed by appropriately licensed personnel. Contractor takes responsibility for the p roper performance of all architectural and engineering services. The Contractor shall develop a design phase schedule and submit it to the BBCRA for approval. 2) follows: The Contractor shall prepare and the BBCRA approve a design phase schedule as a. PHASE I - SCHEMATIC DESIGN PHASE (30% DESIGN) Based upon the BBCRA's Project requirements, as set forth in the ., Schematic Design Studies will be prepared by the Contractor's Architect/Engineer. These Schematics are for the purpose of assisting the BBCRA in determining the feasibility of the Project. These services are specifically outlined xhi~2~G . progress schedule for the Project. This schedule shall indicate the dates for the starting and completion of the various stages of the construction. It shall be reVised as required by the conditions of the Work and those conditions and events which are beyond the Contractor's control. 4) The Contractor shall keep such full and detailed accounts as may be necessary for proper financial management under this Agreement. The system shall be satisfactory to the BBCRA who shall be afforded access to all of the Contractor's records, books, correspondence, instructions, drawings, receipts, vouchers, memoranda and similar data relating to this Agreement. The Contractor shall preserve all such records for a period of three years after the final payment or longer where required by law. C. Royalties and Patents. 1) The Contractor shall pay all royalties and license fees for materials, methods and systems incorporated in the work. He shall defend all suits or claims for infringement ofanypatent rights and shall save the BBCRA harmless from loss on account thereof except when a particular design process or product is specified by the BBCRA. In such case the Contractor shall be responsible for such loss only if he has reason to believe that the design, process or product so specified is an infringement ora patent, and fails to give such information promptly to the BBCRA. D. Warranties and Completion. In addition to the warranty set forth in Section 20., General Conditions: 1) The Contractor will secure required certificates of inspection, testing or approval and deliver them to the BBCRA. 2) The Contractor will collect all written warranties and equipment manuals and deliver them to the BBCRA. 3) The Contractor, with the assistance of the BBCRA's maintenance personnel, will direct the checkout of utilities and operations of systems and equipment for readiness, and will assist in their initial start-up and testing. E. Construction Management. The Contractor shall proVide the BBCRA with the names and qualifications of three (3) construction management companies for selection by the BBCRA Board. The BBCRA Board shall then select a company. If the BBCRA does not want to select a construction manager from the first three (3) companies proVided by Contractor, Contractor shall then supply three (3) more management company names and qualifications until BBCRA is satisfied with a company. If at any time during the construction, the BBCRA becomes dissatisfied with the construction manager company for cause, then Contractor shall agree to terminate the services of said construction management company and again provide the names of construction management companies until one satisfies the BBCRA Board. The construction management company shall be responsible for all of the inspection 1628 and review responsibilities outlined in Exhibit "A" attached hereto. BBCRA and Contractor shall discuss and agree on the method and manner of compensation of the construction management company. Contractor shall be responsible for all payments to the construction management company, and Contractor may bill the BBCRA for reimbursement once each month on a cost basis only. Upon proper documentation of payment and cost provided by Contractor to BBCRA, BBCRA shall reimburse Contractor in said amounts. SECTION 3. CONTRACT AMOUNT. In consideration of the faithful performance by Contractor of the covenants in this Agreement to the full satisfaction and acceptance of BBCRA, BBCRA agrees to pay, or cause to be paid, to Contractor the following amount (herein "Contract Amount"), in accordance with the terms of this Agreement: See Exhibit "H". SECTION 4. BONDS A. Contractor shall provide Performance and Payment Bonds, in the form prescribed in Exhibit B, in the amount of 100% of the Contract Amount, the costs of which to be paid by Contractor. The Performance and Payment Bonds shall be underwritten by a surety authorized to do business in the State of Florida and otherwise acceptable to BBCRA; provided; however, the surety shall be rated as "A-" (excellent) or better and Class "V" or higher rating as to financial size category and the amount required shall not exceed 2% of the reported policy holders surplus, all as reported in the most current Best Key Rating Guide, published by A.M. Best Company, Inc. of 75 Fulton Street, New York, New York 10038. B. If the surety for any bond furnished by Contractor is declared bankrupt, becomes insolvent, its right to do business is terminated in the State of Florida, or it ceases to meet the requirements imposed by the Contract Document, the Contractor shall, within five (5) calendar days thereafter, substitute another bond and surety, both of which shall be subject to the BBCRA's approval. C. As per Florida Statutes, Section 255.05, the Contractor shall be required to execute and record the Performance and Payment bonds. The bonds must state the name and principal business address of both the Principal and the Surety and a description of the Project sufficient to identify it. SECTION 5. CONTRACT TIME AND LIQUIDATED DAMAGES A. Time is of the essence in the performance of the Work under this Agreement. The "Commencement Date" shall be established in the Notice to Proceed to be issued by the BBCRA. Contractor shall commence the Work within five (5) calendar days from the Commencement Date. No Work shall be performed at the Project site prior to the Commencement Date. Any Work performed by Contractor prior to the Commencement Date shall be at the sole risk of Contractor. The Work shall be completed as outlined in the schedule in Exhibit "H". No work under this 1629 contract shall commence until certificates of insurance (see paragraph 13.2) have been received and acknowledged by Susan Vielhauer, CRA Controller. 1630 5 B. BBCKA and Contractor recognize that, since time is of the essence for this Agreement, BBCRA will suffer financial loss if the Work is not substantially completed within the time specified above, as said time may be adjusted as provided for herein. Should Contractor fail to substantially complete the Work witkin the time period noted above, BBCRA shall be entitled to assess, as liquidated damages, but not as a penalty, $ for each calendar day thereafter until substantial completion is achieved. The Project shall be deemed to be substantially completed on the date the BBCRA issues a Substantial Completion Certificate pursuant to the terms hereof. Contractor hereby expressly waives and relinquishes any right which it may have to seek to characterize the above noted liquidated damages as a penalty, which the parties agree represents a fair and reasonable estimate of the BBCRA's actual damages at the time of contracting if Contractor fails to substantially complete the Work in a timely manner. C. When any period of time is referenced by days herein, it shall be computed to exclude the first day and include the last day of such period. If the last day of any such period falls on a Saturday or Sunday or on a day made a legal holiday by the law of the applicable jurisdiction, such day shall be omitted from the computation, and the last day shall become the next succeeding day which is not a Saturday, Sunday or legal holiday. SECTION 6. EXHIBITS INCORPORATED. The following documents are expressly agreed to be incorporated by reference and made a part of this Agreement. Exhibit A: Exhibit B: Exhibit C: Exhibit D: Exhibit E: Exhibit F: Exhibit G: General Terms and Conditions Form of Performance and Payment Bonds Insurance Requirements Form of Release and Affidavit Form of Contractor Application for Payment Form of Change Order Design Criteria Package SECTION 7. NOTICES A. All notices required or made pursuant to this Agreement by the Contractor to the BBCKA shall be in writing and delivered by hand or by United States Postal Service Department, first class mail, postage pre-paid, return receipt requested, addressed to the following: BOYNTON BEACH COMMUNITY DEVELOPMENT AGENCY 639 East Ocean Avenue, Suite 107 Boynton Beach, Florida 33435 Attention: Susan Vielhauer, CRA Controller B. All notices required or made pursuant to this Agreement by BBCRA to Contractor shall be made in writing and shall be delivered by hand or by United States Postal Service Department, first class mail, postage pre-paid, remm receipt requested, addressed to the following: 1631 6 B~T CONSTRUCTION, INC. Attention: Dennis Haynes 1400 Alabama Avenue West Palm Beach, Florida 33401 C. Either party may change its above noted address by giving written notice to the other party in accordance with the requirements of this Section. SECTION 8. MODIFICATION. No modification or change to the Agreement shall be valid or binding upon the parties unless in writing and executed by the party or parties intended to be bound by it. SECTION 9. SUCCESSORS AND ASSIGNS, Subject to other provisions hereof, the Agreement shall be binding upon and shall inure to the benefit of the succeSsors and assigns of the parties to the Agreement. SECTION 10. GOVERNING LAW AND VENUE. The Agreement shall be interpreted under and its performance governed by the laws of the State of Florida. Any lawsuit brought pertaining to this Agreement shall be brought in the 15th Judicial Circuit in and for Palm Beach County, Florida. SECTION 11. NO WAIVER. The failure of the BBCRA to enforce at any time or for any period of time any one or more of the provisions of the Agreement shall not be construed to be and shall not be a waiver of any such provision or provisions or of its fight thereafter to enforce each and every such provision. SECTION 12. ENTIRE AGREEMENT. Each of the parties hereto agrees and represents that the Agreement comprises the full and entire agreement between the parties affecting the Work contemplated, and no other agreement or understanding of any nature concerning the same has been entered into or will be recognized, and that all negotiations, acts, work performed, or payments made prior to the execution hereof shall be deemed merged in, integrated and superseded by the Agreement. SECTION 13. SEVERABILITY. Should anyprovision of the Agreement be determined by a court to be unenforceable, such a determination shall not affect the validity or enforceability of any other section or part thereof. IN WITNESS WHEREOF, the parties have executed this Agreement on the date(s) indicated below. 1632 CONTRACTOR: ATTEST: Corporate Secretary BY: BLYRICHARDT CONSTRUCTION, INC. By: Secretary Its: President Date: Name [CORPORATE SEAL] BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLOR/DA, a political subdivision of the State of Florida acting by and through its duly authorized Board of BBCRA Commissioners. By: Date: Chairman BCCRA Approved Date 1633 EXHIBIT A GENERAL TERMS AND CONDITIONS 1. INTENT OF CONTRACT DOCUMENTS. 1.1. It is the intent of the Contract Documents to describe a functionally complete project (or portion thereof) to be constructed in accordance with the Contract Documents. Any work, materials or equipment that may reasonably be inferred fi.om the Contract Documents as being required to produce the intended result shall be supplied whether or not specifically called for. When words which have a well known technical or trade meaning are used to describe work, materials or equipment, such words shall be interpreted in accordance with that meaning. Reference to standard specifications, manuals or codes of any technical society, organization or association or to the laws or regulations of any governmental authority having jurisdiction over the Project, whether such reference be specific or by implication, shall mean the latest standard specification, manual, code, law or regulation in affect at the time the Work is performed, except as maybe otherwise specifically stated herein. 1.2. If during the performance of the Work Contractor discovers a conflict, error or discrepancy in the Contract Document, Contractor immediately shall report same to BBCRA in writing and before proceeding with the Work affected thereby shall obtain a written interpretation or clarification fi.om the BBCRA. Contractor shall take field measurements and verify field conditions and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract Documents before commencing any portion of the Work. 1.3. Drawings are intended to show general arrangements, design and extent of Work and are not intended to serve as shop drawings. Specifications are separated into divisions for convenience of reference only and shall not be interpreted as establishing divisions for the Work, trades, subcontracts, or extent of any part of the Work. In the event of a discrepancy between or among the drawings, specifications of other Contract Document provisions, Contractor shall be required to comply with the provision which is the more restrictive or stringent requirement upon the Contractor, as determined by the BBCRA. Unless otherwise specifically mentioned, all anchors, bolts, screws, fittings, fillers, hardware, accessories, trim and other parts required in connection with any portion of the Work to make a complete, serviceable, finished and first quality installation shall be furnished and installed as part of the Work, whether or not called for by the Contract Documents. 2. INVESTIGATION AND UTILITIES 2.1 Contractor shall have the sole responsibility of satisfying itself concerning the nature and location of the Work and the general and local conditions, and particularly, but without limitation, with respect to the following: those affecting transportation, access, disposal, handling and storage of materials; availability and quality of labor; water and electric power; availability and condition of roads; work area; living facilities; climatic conditions and seasons; physical conditions at the work-site and the Project area as a whole; topography and ground surface conditions; nature and quality of the surface materials to be encountered; equipment and facilities needed preliminary to 1634 and during performance of the Work; and ail other costs associated with such performance. The failure of Contractor to acquaint itself with any applicable conditions shall not relieve Contractor fi:om any of its responsibilities to perform under the Contract Documents, nor shall it be considered the basis for any claim for additional time or compensation. 2.2. Contractor shall locate all existing roadways, railways, drainage facilities and utility services above, upon, or under the Project site, said roadways, railways, drainage facilities and utilities being referred to in this Section 2 as the "Utilities". Contractor shall contact the owners of all Utilities to determine the necessity for relocating or temporarily interrupting any Utilities during the construction of the Project. Contractor shall schedule and coordinate its Work around any such relocation or temporary service interruption. Contractor shail be responsible for properly shoring, supporting and protecting all Utilities at all times during the course of the Work. 3. PROGRESS PAYMENTS. 3.1. Prior to submitting its first Application for Payment, Contractor shall submit to BBCRA, for its review and approval, a schedule ofvaiues based upon the Contract Price, listing the major elements of the Work and the dollar value for each element. After its approval by the BBCRA, this schedule of values shall be used as the basis for the Contractor's Applications for Payment. This schedule shall be updated and submitted along with a completed and notarized copy of the Application for Payment form attached to the Agreement as Exhibit E. 3.2. Prior to submitting its first Monthly Application for Payment, Contractor shall submit to BBCRA a complete list of ail its proposed subcontractors and materialmen, showing the work and materials involved and the dollar amount of each proposed subcontract and purchase order. The first Application for Payment shall be submitted no earlier than thirty (30) days after Commencement Date. 3.3. If payment is requested on the basis ofmateriais and equipment not incorporated into the Project, but delivered and suitably stored at the site or at another location agreed to by the BBCRA in writing, the Application for Payment shail aiso be accompanied by a bill of sale, invoice or other documentation warranting that upon payment by BBCRA, the BBCRA shall receive the materials and equipment free and clear of all liens, charges, security interests and encumbrances, together with evidence t hat t he materials and equipment are covered by appropriate property insurance and other arrangements to protect BBCRA's interest therein, all of which shall be subject to the BBCRA's prior written approval. 3.4. Contractor shall submit ( ) copies of each of its Applications for Payment to the BBCRA on or before the 25th day of each month for work performed during the previous month. Invoices received after the 25th day of each month shall be considered for payment as part of the next month's application. Within ten (10) calendar days after receipt of each Application for Payment, the BBCRA shall either: (1) indicate approval of the requested payment; (2) indicate approval of only a portion of the requested payment, stating in writing the reasons therefor; or (3) return the Application for Payment to the Contractor indicating, in writing, the reason for refusing to approve payment. In the event of a total denial and return of the Application for Payment by the 1635 10 BBCRA, the Contractor may make the necessary corrections and resubmit the Application for Payment. The BBCRA shall, within thirty (30) calendar days after BBCRA approval of an Application for Payment, pay the Contractor the amounts so approved. Provided, however, in no event shall the BBCRA be obligated to pay an amount greater than that portion of the Application for Payment approved by the BBCRA. 3.5. Except for applications for payment for work performed pursuant to Section 2.A. of the Agreement, relating to the Design Phase, BBCRA shall retain ten percent (10%) of the gross amount of each monthly payment request or ten percent (10%) of the portion thereof approved by the BBCRA for payment, whichever is less, up to fifty percent (50%) completion. Thereafter, if on schedule, the BBCRA shall retain five percent (5%) of the gross amount of each monthly payment request. Such sum shall be accumulated and not released to Contractor until final payment is due. Any interim interest on such sums shall accrue to BBCRA. 3.6. Monthly payments to Contractor shall in no way imply approval or acceptance of Contractor's work. ._ 3.7. Each Application for Payment shall be accompanied by Release and Affidavit, in the form attached as Exhibit D, showing that all materials, labor, equipment and other bills associated with that portion of the Work payment is being requested or have been paid in full. The BBCRA shall not be required to make payment until and unless these affidavits are furnished by Contractor. 4. PAYMENTS WITHHELD. 4.1. The B BCRA m ay decline t o approve a ny Application for Payment, o r portions thereof, because of subsequently discovered evidence or subsequent inspections. The BBCRA may nullify the whole or any part of any approval for payment previously issued and BBCRA may withhold any payments otherwise due Contractor under this Agreement or any other agreement between BBCRA and Contractor, to such extent as may be necessary in the BBCRA's opinion to protect it from loss because off (a) defective Work not remedied; (b) third party claims filed or reasonable evidence indicating probable filing of such claims; (c) failure of Contractor to make payment properly to subcontractors or for labor, materials or equipment; (d) reasonable doubt that the Work can be completed for the unpaid balance of the Contract Amount; (e) reasonable indication that the Work will not be completed within the Contract Time; (f) unsatisfactory prosecution of the Work by the Contractor; or (g) any other material breach of the Contract Documents. If these conditions are not remedied or removed, BBCRA may, after three (3) days written notice, rectify the same at Contractor's expense. BBCRA also may offset against any sums due Contractor the amount of any liquidated or unliquidated obligations of Contractor to BBCRA, whether relating to or arising out of this Agreement or any other agreement between Contractor and BBCRA. 5. FINAL PAYMENT. 5.1. BBCRA shall make final payment to Contractor within thirty (30) calendar days after the Work is finally inspected and accepted by BBCRA in accordance with Section 19.1 herein, provided that Contractor first, and as an explicit condition precedent to the accrual of Contractor's 1636 11 right to final payment, shall have furnished BBCRA with a properly executed and notarized copy of the Release and Affidavit attached as Exhibit D, as well as, a duly executed copy of the Surety's consent t o final payment a nd such other documentation t hat m ay b e required b y t he Contract Documents or the BBCRA. 5.2. Contractor's acceptance of final payment shall constitute a full waiver of any and all claims by Contractor against BBCRA arising out of this Agreement or otherwise relating to the Project, except those previously made in writing and identified by Contractor as unsettled at the time of the final Application for Payment. Neither the acceptance of the Work nor payment by BBCRA shall be deemed to be a waiver of BBCRA's right to enforce any obligations of Contractor hereunder or to the recovery of damages for defective Work not discovered by the BBCRA at the time of final inspection. 6. SUBMITTALS AND SUBSTITUTIONS. 6.1. Contractor shall carefully examine the Contract Documents for all requirements for approval of materials to be submitted such as shop drawings, data, test results, schedules and samples. Contractor shall submit all such materials at its own expense and in such form as required by the Contract Documents in sufficient time to prevent any delay in the delivery of such materials and the installation thereof. 6.2. Whenever materials or equipment are specified or described in the Contract Documents by using the name of a proprietary item or the name of a particular supplier, the naming of the item is intended to establish the type, fimction and quality required. Unless the name is followed by words indicating that no substitution is permitted, materials or equipment of other suppliers may be accepted by BBCRA if sufficient information is submitted by Contractor to allow the BBCRA to determine that the material or equipment proposed is equivalent or equal to that named. Requests for review of substitute items of material and equipment will not be accepted by BBCRA fi:om anyone other than Contractor and all such requests must be submitted by Contractor to BBCRA within thirty (30) calendar days after Notice of Award is received by Contractor. 6.3. If Contractor wishes to famish or use a substitute item of material or equipment, Contractor shall make application to the BBCRA for acceptance thereof, certifying that the proposed substitute shall perform adequately the functions and achieve the results called for by the general design, be similar and of equal substance to that specified and be suited to the same use as that specified. The application shall state that the evaluation and acceptance of the proposed substitute will not prejudice Contractor's achievement of substantial completion on time, whether or not acceptance of the substitute for use in the Work will require a change in any of the Contract Documents (or in the provisions of any other direct contract with BBCRA for the Project) to adapt the design to the proposed substitute and whether or not incorporation or use by the substitute in connection with the Work is subject to payment of any license fee or royalty. All variations of the proposed substitute fi:om that specified will be identified in the application and available maintenance, repair and replacement service shall be indicated. The application also shall contain an itemized estimate of all costs that will result directly or indirectly fi:om acceptance of such substitute, including costs for redesign and claims of other contractors affected by the resulting change, all of 1637 12 which shall be considered by the BBCRA in evaluating the proposed substitute. The BBCRA may require Contractor to furnish at Contractor's expense additional data about the proposed substitute. 6.4. If a specific means, method, technique, sequence or procedure of construction is indicated in or required by the Contract Documents, Contractor may furnish or utilize a substitute means, method, sequence, technique or procedure of construction acceptable to the BBCRA, if Contractor submits sufficient information to allow the BBCRA to determine that the substitute proposed is equivalent to that indicated or required by the Contract Documents. The procedures for submission to and review by the BBCRA shall be the same as those provided herein for substitute materials and equipment. 6.5. The BBCRA shall be allowed a reasonable time within which to evaluate each proposed substitute. The BBCRA shall be the sole judge ofacceptabihty, and no substitute will be ordered, installed or utilized without the BBCRA's prior written acceptance which shall be evidenced by either a Change Order or an approved Shop Drawing. The BBCRA may require Contractor to furnish at Contractor's expense a special performance guarantee or other surety with respect to any substitute. 7. DAILY REPORTS, AS-BLIILTS AND MEETINGS. 7.1. Unless waived in writing by BBCRA, during the Construction Phase, Contractor shall maintain on file on the site, a daily log of the Contractor's work for the preceding week in a format approved by the BBCRA. The daily log shall document all activities of Contractor at the Project site including, but not limited to, the following: 7.1.1. Weather conditions showing the high and low temperatures during work hours, the amount of precipitation received on the Project site, and any other weather conditions which adversely affect the Work; 7.1.2. Soil conditions which adversely affect the Work; 7.1.3. The hours of operation by Contractor's and subcontractor's personnel; 7.1.4. The number of Contractor's and subcontractor's personnel present and working at the Project site, by subcontract and trade; 7.1.5. All equipment present at the Project site, description of equipment use and designation of time equipment was used (specifically indicating any down time); 7.1.6. Description of Work being performed at the Project site; 7.1.7. Any unusual or special occurrences at the Project site; 7.1.8. Materials received at the Project site; and 7.1.9. A list of all visitors to the Project site. The daily log shall not constitute nor take the place of any notice required to be given by Contractor 1638 13 to BBCRA pursuant to the Contract Documents. 7.2. Contractor shall maintain in a safe place at the Project site one record copy of the Contract Documents, as well as all shop drawings and other Contractor submittals and all written interpretations and clarifications issued by the BBCRA, in good order and annotated to show all changes made during construction. The annotated drawings shall be continuously updated by the Contractor throughout the prosecution of the Work to accurately reflect all field changes that are made to adapt the Work to field conditions, changes resulting fi:om Change Orders, Work Directive Changes and Field Orders, and all concealed and buffed installations of piping, conduit and utility services. All buffed and concealed items, both inside and outside the Project site, shall be accurately located on the annotated drawings as to depth and in relationship to not less than two (2) permanent features (e.g. interior or exterior wall faces). The annotated drawings shall be clean and all changes, corrections and dimensions shall be given in a neat and legible manner in a contrasting color. The "As-Built" record documents, together with all approved samples and a counterpart of all approved shop drawings shall be available to BBCRA for reference. Upon completion of the Work, and as a condition precedent to Contractor's entitlement to final payment, these "As-Built" record documents, samples and shop drawings shall be delivered to BBCRA by Contractor for BBCRA. 7.3. Contractor shall keep all records and supporting documentation which concern or relate to the Work hereunder for a minimum of five (5) years fi:om the date of termination of this Agreement or the date the Project is completed, whichever is later. BBCKA, or any duly authorized agents or representatives of BBCRA, shall have the right to audit, inspect and copy all such records and documentation as often as they deem necessary during the period of this Agreement and during the five (5) year period noted above; provided, however, such activity shall be conducted only during normal business hours. 8. CONTRACT TIME AND TIME EXTENSIONS. 8.1. Contractor shall diligently pursue the completion of the Work and coordinate the Work being done on the Project by its Architect/Engineer, subcontractors and materialmen, as well as coordinating its Work with all work of others at the Project Site, so that its Work or the work of others shall not be delayed or impaired by any act or omission of Contractor. Contractor shall be solely responsible for all construction means, methods, techniques, sequences, and procedures, as well as coordination of all portions of the Work under the Contract Documents. 8.2. Should Contractor be obstructed or delayed in the prosecution of or completion of the Work as a result of unforeseeable causes beyond the control of Contractor, and not due to its fault or neglect, including but not restricted to acts of God or of the public enemy, acts of government, fires, floods, epidemics, quarantine regulations, strikes or lockouts, Contractor shall notify the BBCRA in writing within forty-eight (48) hours after the commencement of such delay, stating the cause or causes thereof, or be deemed to have waived any fight which Contractor may have had to request a t/me extension. 8.3. No interruption, interference, inefficiency, suspension or delay in the commencement or progress of the Work fi:om any cause whatever, including those for which BBCKA may be 1639 14 responsible, in whole or in part, shall relieve Contractor of his duty to perform or give rise to any right to damages or additional compensation bom BBCRA. Contractor expressly acknowledges and agrees that it shall receive no damages for delay. Contractor's sole remedy, if any, against BBCRA will be the right to seek an extension to the Contract Time; provided, however, the granting of any such time extension shall not be a condition precedent to the aforementioned "No Damage For Delay" provision. This paragraph shall expressly apply to claims for early completion, as well as to claims based on late completion. 9. CHANGES IN THE WORK. 9.1. BBCRA shall have the right at any time during the progress of the Work to increase or decrease the Work. Promptly after being notified of a change, Contractor shall submit an itemized estimate of any cost or time increases or savings it foresees as a result of the change. Except in an emergency endangering life or property, or as expressly set forth herein, no addition or changes to the Work shall be made except upon written order of BBCRA, and BBCRA shall not be liable to the Contractor for any increased compensation without such written order. No officer, employee or agent of BBCRA is authorized to direct any extra or changed work orally. 9.2. A Change Order, in the form attached as Exhibit F to this Agreement, shall be issued and executed promptly after an agreement is reached between Contractor and BBCRA concerning the requested changes. Contractor shall promptly perform changes authorized by duly executed Change Orders. The Contract Amount and Contract Time shall be adjusted in the Change Order in the manner as BBCRA and Contractor shall mutually agree. 9.3. IfBBCRA and Contractor are unable to agree on a Change Order for the requested change, Contractor shall, nevertheless, promptly perform the change as directed by BBCRA in a written Work Directive Change. In that event, the Contract Amount and Contract Time shall be adjusted as directed by BBCRA. If Contractor disagrees with' the BBCRA's adjustment determination, Contractor must make a claim pursuant to Section 10 of these General Conditions or else be deemed to have waived any claim on this matter it might otherwise have had. 9.4. In the event a requested change results in an increase to the Contract Amount, as to design the amount of the increase shall be based upon the standard hourly billing rates, according to classification of the Contractor's Architect/Engineer plus expenses to be charged at actual cost. As to the construction, the amount of the increase shall be an amount agreed to by BBCRA and Contractor or the Contractor's reasonable direct labor and material costs and reasonable actual equipment costs as a result of the change (including allowance for labor burden costs) plus a maximum ten percent (10%) markup for all overhead and profit. In the event such change Work is performed by a Subcontractor, a maximum ten percent (10%) markup for all overhead and profit for all Subcontractors' and sub-subcontractors' direct labor and material costs and actual equipment costs shall be permitted, with a maximum five percent (5%) markup thereon by the Contractor for all of its overhead and profit, for a total maximum markup of fifteen percent (15%). All compensation due Contractor and any Subcontractor or sub-subcontractor for field and home office overhead is included in the markups noted above. 1640 9.5. BBCRA shall have the fight to conduct an audit of Contractor's books and records to verify the accuracy of the Contractor's claim with respect to Contractor's costs associated with any Change Order. 9.6. The BBCRA shall have authority to order minor changes in the Work not involving an adjustment to the Contract Amount or an extension to the Contract Time and not inconsistent with the intent of the Contract Documents. Such changes may be affected by Field Order or by other written order. Such changes shall be binding on the Contractor. 10. CLAIMS AND DISPUTES. 10.1. A Claim is a demand or assertion by one of the parties seeking an adjustment or interpretation of the terms of the Contract Documents, payment of money, extension of time or other relief with respect to the terms of the Contract Documents. The term "Claim" also includes other disputes and matters in question between BBCRA and Contractor arising out of or relating to the Contract Documents. The responsibility to substantiate a Claim shall rest with the party making the Claim. 10.2. Claims by the Contractor shall be made in writing to the BBCRA within seven (7) Calendar days after the first day of the event giving rise to such Claim or else the Contractor shall be deemed to have waived the Claim. Written supporting data shall be submitted to the BBCKA within fifteen (15) calendar days after the occurrence of the event, unless the BBCRA grants additional time in writing, or else the Contractor shall be deemed to have waived the Claim. All claims shall be priced in accordance with the provisions of Subsection 9.4. 10.3. The Contractor shall proceed diligently with its performance as directed by the BBCRA, regardless of any pending Claim, action, suit or administrative proceeding, unless otherwise a greed t o b y t he B BCRA i n writing. B BCRA s hall continue t o make payments in accordance with the Contract Documents during the pendency of any Claim. 11. OTHER WORK. 11.1. BBCRA may perform other work related to the Project at the site by BBCRA's own forces, have other work performed by utility owners or let other direct contracts. If the fact that such other work is to be performed is not noted in the Contract Documents, notice thereof will be given to Contractor; If Contractor believes that such performance will involve additional expense to Contractor or require additional time, Contractor shall send written notice of that fact to BBCRA within seven (7) calendar days of being notified of the other work. If the Contractor fails to send the above required seven (7) calendar days notice, the Contractor will be deemed to have waived any rights it otherwise may have had to seek an extension to the Contract Time or adjustment to the Contract Amount. 11.2. Contractor shall afford each utility owner and other contractor (or BBCRA, if BBCRA is performing the.additional work with BBCRA's employees) proper and safe access to the site and a reasonable oppommity for the introduction and storage of materials and equipment and the 1641 16 execution of such work and shall properly connect and coordinate its Work with theirs. Contractor shall do all cutting, fitting and patching of the Work that may be required to make its several parts come together properly and integrate with such other work. Contractor shall not endanger any work of others by cutting, excavating or otherwise altering their work and will only cut or alter their work with the written consent of the BBCRA and the others whose work will be affected. 11.3. If any part of Contractor's Work depends for proper execution or results upon the work of any contractor or utility owner (or BBCRA), Contractor shall promptly report to BBCRA in writing any delays, defects or deficiencies in such work that render it unavailable or unsuitable for such proper execution and results. 12. INDEMNIFICATION AND INSURANCE. 12.1. Contractor agrees to save harmless, indemnify, and defend BBCRA and its, agents, officers and employees from any and all claims, losses, penalties, interest, demands, judgments, and costs of suit, including attorneys' fees and paralegals' fees, for any expense, damage or liability incurred by any of them, whether for personal injury, death, property damage, direct or consequential damages, or economic loss, including environmental impairment, arising directly or indirectly on account of or in connection with the Work done by Contractor under this Agreement or by any person, firm or corporation (including but not limited to the Architect/Engineer) to whom any portion of the Work is subcontracted by Contractor or resulting from the use by Contractor, or by any one for whom Contractor is legally liable, of any materials, tools, machinery or other property of BBCRA. BBCRA and Contractor agree the first $100.00 of the Contract Amount paid by BBCRA to Contractor shall be given as separate consideration for this indemnification, and any other indemnification of BBCRA by Contractor provided for within the Contract Documents, the sufficiency of such separate consideration being acknowledged by Contractor by Contractor's acceptance and execution of the Agreement. The Contractor's obligation shall not be limited by, or in any way to, any insurance coverage or by any provision in or exclusion or omission from any policy of insurance. The Contractor agrees to pay on behalf of BBCRA, as well as provide a legal defense for the BBCRA, both of which will be done only if and when requested by the BBCRA, for all claims made. Such payment on the behalf of the BBCRA shall be in addition to any and all other legal remedies available to the BBCRA and shall not be considered to be the BBCRA's exclusive remedy. 12.2. Contractor shall obtain and carry, at all times during its performance under the Contract Documents, insurance of the types and in the amounts set forth in Exhibit C to the Agreement. All insurance policies shall be from responsible companies duly authorized to do business in the State of Florida and/or responsible risk retention group insurance companies or trusts which are registered with the State of Florida. Foreign or off-shore insurance carriers are not acceptable for work under this contract unless admitted to the State of Florida. All commercial insurance carriers providing the Contractor with required insurance shall be rated with a minimum financial size category of VllI according to the AM Best Rating Guide, latest edition. An A or better Best Rating is "preferred"; however, other ratings if "Secure Best Ratings" may be considered. Within ten (10) calendar days after Notice of Award is received by Contractor and prior to the commencement of work, Contractor shall provide BBCRA with properly executed Certificates of Insurance to evidence Contractor's compliance with the insurance requirements of the Contract 1642 17 Documents. Said Certificates of Insurance shall be on forms approved by BBCRA, such as "Acord Form 25". The Certificates of Insurance shall be personally, manually signed by the authorized representatives of the insurance company/companies shown on the Certificates of Insurance, with proof that they are authorized representatives thereof. Certificates of Insurance shall be mailed to BBCRA in care of: Susan Vielhauer, CRA Controller. In addition, certified, tree and exact copies of all insurance policies required hereunder shall be provided to BBCRA, on a timely basis, when requested by BBCRA. 12.3. The Certificates of Insurance and required insurance policies shall contain provisions that thirty (30) days prior written notice by registered or certified mail shall be given BBCRA of any cancellation, intent not to renew, or reduction in the policies or coverages, except in the application of the aggregate limits provisions. In the event of a reduction in the aggregate limit of any policy, Contractor shall immediately take steps to have the aggregate limit reinstated to the full extent permitted under such policy. 12.4. All insurance coverages of the Contractor shall be primary to any insurance or self insurance program carried by the BBCRA applicable to this Project. The acceptance byBBCRA of any Certificate of Insurance does not constitute approval or agreement by the BBCRA that the insurance requirements have been satisfied or that the insurance policy shown on the Certificate of Insurance is in compliance with the requirements of the Contract Documents. No work shall commence at the Project site unless and until the required Certificates of Insurance are received by the BBCRA. 12.5. Contractor shall require each of its subcontractors to procure and maintain, until the completion of the subcontractor's work, insurance of the types and to the limits specified in Exhibit C, unless such insurance requirements for the subcontractor is expressly waived in writing by the BBCRA. All liability insurance policies, other than professional liability, worker's compensation and employer's liability policies, obtained by Contractor to meet the requirements of the Contract Documents shall name BBCRA as an additional insured and shall contain severability of interest provisions. BBCRA shall also be designated as certificate holder with the address of 639 East Ocean Avenue, Suite 1 07, B oynton B each, Florida 3 3435. I f any insurance provided pursuant t o t he Contract Documents expires prior to the completion of the Work, renewal Certificates of Insurance and, if requested by BBCRA, certified, tree copies of the renewal policies, shall be furnished by Contractor within thirty (30) days prior to the date of expiration. Upon expiration of an insurance policy term during the course of work under the contract, succeeding insurance policies shall be consecutive to the expiring policy. 12.6 All liability policies shall be underwritten on the "occurrence" basis. 12.7. Should at any time the Contractor not maintain the insurance coverages required herein, the BBCRA may terminate the Agreement or at its sole discretion shall be authorized to purchase such coverages and charge the Contractor for such coverages purchased. The BBCRA shall be under no obligation to purchase such insurance, nor shall it be responsible for the coverages purchased or the insurance company or companies used. The decision of the BBCRA to purchase such insurance coverages shall in no way be construed to be a waiver of any of its fights under the Contract Documents. 1643 18 12.8. Contractor shall submit to BBCRA a copy of all accident reports arising out of any personal injuries or property damages arising or alleged to have arisen on account of any work by Contractor or sub-Contractor under the contract documents. 12.9 Duty to Provide Legal Defense. The Contractor agrees to pay, to BBCRA, as well as provide a legal defense for the BBCRA, which shall include attorneys' fees and costs, both of which will be done only if and when requested by the BBCRA, for all claims as described in paragraph 13.1. Such payment on the behalf of the BBCRA shall be in addition to any and all other legal remedies available to the BBCRA and shall not be considered to be the BBCRA's exclusive remedy. 13. COMPLIANCE WITH LAWS. 13.1. Contractor agrees to comply, at its own expense, with all federal, state and local laws, codes, statutes, ordinances, rules, regulations and requirements applicable to the Project, including but not limited to those dealing with taxation, worker's compensation, equal employment and safety. If Contractor observes that the Contract Documents are at variance therewith, it shall promptly notify BBCRA in writing. Compliance with the above laws shall include but is not limited to: (1) the Occupational Safety and Health Act, 29 CFR 1910 and 1926, respectively, General Industry Standards and Construction Industry Standards, including regulations regarding Trenching and Shoring; (2) the Florida Workers' Compensation Law, Chapter 440, Florida Statutes; (3) Rules 38F and 38I, Florida Administrative Code; and (4) Florida Department of Transportation Manual of Traffic Control and Safe Practices. Failure to adhere to the requirements of the above named laws and regulations regarding safety and traffic control shall be grounds for an mediate work stoppage, either by BBCRA staff or the Contractor, until the deficiency is corrected. 14. CLEANUP AND PROTECTIONS. 14.1. Contractor agrees to keep the Project site clean at all times of debris, rubbish and waste materials arising out of the Work. At the completion of the Work, Contractor shall remove all debris, rubbish and waste materials from and about the Project site, as well as all tools, appliances, construction equipment and machinery and surface materials, and shall leave the Project site clean and ready for occupancy by BBCRA. 14.2. Any existing surface or subsurface improvements, including, but not limited to, pavements, curbs, sidewalks, pipes, utilities, footings, structures, trees and shrubbery, not indicated in the Contract Documents to be removed or altered, shall be protected by Contractor fi'om damage during the prosecution of the Work. Any such improvements so damaged shall be restored by Contractor to the condition equal to that existing at the time of Contractor's commencement of the Work. 15. ASSIGN3,IENT. 15.1. Contractor shall not assign this Agreement or any part thereof, without the prior consent in writing ofBBCRA. If Contractor does, with approval, assign this Agreement or any part 1644 19 thereof, it shall require that its assignee be bound to it and to assume toward Contractor all of the obligations and responsibilities that Contractor has assumed toward BBCRA. 16. PERMITS, LICENSES AND TAXES. 16.1. All permits and licenses and all governmental charges and inspection fees necessary for the prosecution of the Work shall be procured and paid for by Contractor. If Contractor performs any Work without obtaining, or contrary to, such permits or licenses, Contractor shall bear all costs arising therefi:om. BBCRA upon proper documentation of amounts p aid b y Contractor, s hall reimburse Contractor on a cost only basis for said permits, licenses, and charges excluding those incurred due to work performed without a permit or contrary to any permit issued. 16.2. Contractor shall pay all sales, consumer, use and other similar taxes associated with the Work or portions thereof, which are applicable during the performance of the Work. 17. TERMINATION FOR DEFAULT. 17.1. Contractor shall be considered in material default of the Agreement and such default shall be considered cause for BBCRA to terminate the Agreement, in whole or in part, as further set forth in this Section, if Contractor: (1) fails to begin the Work under the Contract Documents within the time specified herein; or (2) fails to properly and timely perform the Work as directed by the BBCRA or as provided for in the approved Progress Schedule; or (3) performs the Work unsuitably or neglects or refuses to remove materials or to correct or replace such Work as may be rejected as unacceptable or unsuitable; or (4) discontinues the prosecution of the Work; or (5) fails to resume Work which has been suspended within a reasonable time after being notified to do so; or (6) becomes insolvent or is declared bankrupt, or commits any act of bankruptcy; or (7) allows any final judgment to stand against it unsatisfied for more than ten (10) days; or (8) makes an assignment for the benefit of creditors; or (9) fails to obey any applicable codes, laws, ordinances, rules or regulations with respect to the Work; or (10) materially breaches any other provision of the Contract Documents. 17.2. BBCRA shall notify Contractor in writing of Contractor's default(s). If BBCRA determines that Contractor has not remedied and cured the default(s) within seven (7) calendar days following receipt by Contractor of said written notice, then BBCRA, at its option, without releasing or waiving its rights and remedies against the Contractor's sureties and without prejudice to any other right or remedy it may be entitled to hereunder or by law, may tenrdnate Contractor's right to proceed under the Agreement, in whole or in part, and take possession of all or any portion of the Work and any materials, tools, equipment, and appliances of Contractor, take assignments of any of Contractor's subcontracts and purchase orders, and complete all or any portion of Contractor's Work by whatever means, method or agency which BBCRA, in its sole discretion, may choose. 17.3. IfBBCRA deems any of the foregoing remedies necessary, Contractor agrees that is shall not be entitled to receive any further payments hereunder until after the Project is completed. All monies expended and all of the costs, losses, damages and extra expenses, including all management, administrative and other overhead and other direct and indirect expenses (including attorneys' fees) or damages incurred by BBCRA incident to such completion, shall be deducted from the Contract Amount, and if such expenditures exceed the unpaid balance of the Contract Amount, 1645 20 Contractor agrees to pay promptly to BBCRA on demand the full amount of such excess, including costs of collection, attorney's fees (including appeals) and interest thereon at the maximum legal rate of interest until paid. If the unpaid balance of the Contrhct Amount exceeds all such costs, expenditures and damages incurred by the BBCRA to complete the Work, such excess shall be paid to the Contractor. The amount to be paid to the Contractor or BBCRA, as the case maybe, and this obligation for payment shall survive termination of the Agreement. 17.4. The liability of Contractor hereunder shall extend to and include the full amount of any and all sums paid, expenses and losses incurred, damages sustained, and obligations assumed by BBCRA in good faith under the belief that such payments or assumptions were necessary or required, in completing the Work and providing labor, materials, equipment, supplies, and other items therefor or re-letting the Work, in settlement, discharge or compromise of any claims, demands, suits, and judgments pertaining to or arising out of the Work hereunder. 17.5. If, after notice of termination of Contractor's fight to proceed pursuant to this Section, it is determined for any reason that Contractor was not in default, or that its default was excusable, or that BBCRA is not entitled to the remedies against Contractor provided herein, then Contractor's remedies against BBCRA shall be the same as and limited to those afforded Contractor below under Subsection 18.1, Termination for Convenience. 17.6 If the Contractor refuses to allow public access to all documents, papers, letters, or other material subject to the provisions of Chapter 119, Florida Statutes, and made or received by the Contractor in conjunction with this Agreement then the BBCRA may, without prejudice to any right or remedy and after giving the Contractor and his surety, if any, seven (7) days written notice, during which period Contractor still fails to allow access, terminate the employment of the Contractor and take possession o f t he s itc a nd o f a 11 materials, equipment, tools, construction equipment and machinery thereon, owned by the Contractor, and may finish the project by whatever method it may deem expedient. In such case, the Contractor shall not be entitled to receive any further payment until the Project is finished. Reasonable terminal expenses incurred by the BBCRA may be deducted from any payments left owing the Contractor (excluding monies owed the Contractor for subcontract work). 18. TERMINATION FOR CONVENIENCE AND RIGHT OF SUSPENSION. 18.1. BBCRA shall have the right to terminate this Agreement without cause upon seven (7) calendar days written notice to Contractor. In the event of such termination for convenience, Contractor's recovery against BBCRA shall be limited to that portion of the Contract Amount earned through the date of termination, together with any retainage withheld and reasonable termination expenses incurred, but Contractor shall not be entitled to any other or further recovery against BBCRA, including, but not limited to, damages or any anticipated profit on portions of the Work not performed. 18.2. BBCRA shall have the right to suspend all or any portions of the Work upon giving Contractor two (2) calendar days' prior written notice of such suspension. I_fall or any portion of the Work is so suspended, Contractor's sole and exclusive remedy shall be to seek an extension of time 1646 21 to its schedule in accordance with the procedures set forth in the Contract Documents. In no event shall the Contractor be entitled to any additional compensation or damages. Provided, however, if the ordered suspension exceeds three (3) months, the Contractor shall have the fight to terminate the Agreement with respect to that portion of the Work which is subject to the ordered suspension. 19. COMPLETION. 19.1. Upon receipt of written notice that the Work is ready for final inspection and acceptance and upon receipt of a final Application for Payment, the BBCRA shall promptly make such inspection and, if it finds the work acceptable and fully performed under the Contract Documents, shall promptly issue a final Certificate for Payment, stating that, on the basis of observations and inspections, the Work has been completed in accordance with the terms and conditions of the Contract Documents and that the entire balance found to be due the Contractor is due and payable. The final payment shall not become due and payable until Contractor submits: (1) the Release and Affidavit in the form attached as Exhibit D, (2) consent of surety to final payment, (3) if required by BBCRA, other data establishing payment or satisfaction of all obligations, such as receipts, releases and waivers of liens, arising out of the Contract Documents, to the extent and in such form as may be designated by BBCRA, and (4) a published copy of the Notice of Completion as provided for in section 19.2. BBCRA reserves the right to inspect the Work and make an independent determination as to the Work's acceptability. Unless and until the BBCRA is completely satisfied, the final payment shall not become due and payable. 19.2 After the Work is ready for final inspection and acceptance by the BBCRA, a legal advertisement must be published by BBCRA in a local newspaper of a general BBCRA wide circulation at least thirty (30) days before final payment shall be made. Example of such publication is as follows: Legal Notice of Completion Notice is hereby given that BURKHARDT CONSTRUCTION, INC., has completed and has ready for acceptance by the Board of the BBCRA, Florida, the following construction project: PROMENADE AND RIVERWALK PROJECT Boynton Beach, Florida BLrRKHARDT CONSTRUCTION, INC. 1400 Alabama Avenue West Palm Beach, Florida 33401 Subcontractors, materialmen, and other persons having payment claims against the Contractor relating to this project should govern themselves accordingly. 1647 22 20.1. Contractor shall obtain and assign to BBCRA all express warranties given to Contractor or any subcontractors by any materialmen supplying materials, equipment or fixtures to be incorporated into the Project. Contractor warrants to BBCRA that any materials and equipment furnished under the Contract Documents shall be new unless otherwise specified, and that all Work shall be of good quality, free from all defects and in conformance with the Contract Documents. Contractor further warrants to BBCRA that all materials and equipment furnished under the Contract Documents shall be apphed, installed, connected, erected, used, cleaned and conditioned in accordance with the instructions of the applicable manufacturers, fabricators, supphers or processors except as otherwise provided for in the Contract Documents. If, within one (1) year(s) after final completion, any Work is found to be defective or not in conformance with the Contract Documents, Contractor shall correct it promptly after receipt of written notice fi.om BBCRA. Contractor shall also be responsible for and pay for replacement or repair of adjacent materials or Work which may be damaged as a result of such replacement or repair. These warranties are in addition to those implied warranties to which BBCRA is entitled as a matter of law. 21. TESTS AND INSPECTIONS. 21.1. BBCRA, its respective representatives, agents and employees, and any governmental agencies with jurisdiction over the Project shall have access at all times to the Work, whether the Work is being performed on or offofthe Project site, for their observation, inspection and testing. Contractor shall provide proper, safe conditions for such access. Contractor shall provide BBCRA with timely notice of readiness of the Work for all required inspections, tests or approvals. 21.2. If the Contract Documents or any codes, laws, ordinances, rules or regulations of any public authority having jurisdiction over the Project requires any portion of the Work to be specifically inspected, tested or approved, Contractor shall assume full responsibility therefore, pay all costs in connection therewith and furnish BBCRA the required certificates of inspection, testing or approval. All inspections, tests or approvals shall be performed in a manner and bY organizations acceptable to the BBCRA. 21.3. If any Work that is to be inspected, tested or approved is covered without written concurrence from the BBCRA, such work must, if requested by BBCRA, be uncovered for observation. Such uncovering shall be at Contractor's expense unless Contractor has given BBCRA timely notice of Contractor's intention to cover the same and BBCRA has not acted with reasonable promptness to respond to such notice. If any Work is covered contrary to written directions from BBCRA, sUCh Work must, if requested by BBCRA, be uncovered for BBCRA's observation and be replaced at Contractor's sole expense. 21.4. The BBCRA shall charge to Contractor and may deduct fi.om any payments due Contractor all engineering and inspection expenses incurred by BBCRA in connection with any overtime work. Such overtime work consisting of any work during the construction period beyond the regular eight (8) hour day and for any work performed on Saturday, Sunday or holidays. 21.5. Neither observations by the BBCRA nor inspections, tests or approvals by others shall relieve Contractor from Contractor's obligations to perform the Work in accordance with the 1648 23 Contract Documents. 22. DEFECTIVE WORK. 22.1. Work not conforming to the requirements of the Contract Documents shall be deemed defective Work. If required by BBCRA, Contractor shall as directed, either correct all defective Work, whether or not fabricated, installed or completed, or, if the defective Work has been rejected by BBCRA, remove it from the site and replace it with undefective Work. Contractor shall bear all direct, indirect and consequential costs of such correction or removal (including, but not limited to fees and charges of engineers, architects, attorneys and other professionals) made necessary thereby, and shall hold BBCRA harmless for same. 22.2. If the BBCRA considers it necessary or advisable that covered Work be observed by BBCRA or inspected or tested by others, Contractor, at BBCRA's request, shall uncover, expose or otherwise make available for observation, inspection or tests as BBCRA may require, that portion of the Work in question, furnishing all necessary labor, material and equipment. If it is found that such Work is defective, Contractor shall bear all direct, indirect and consequential costs of such uncovering, exposure, observation, inspection and testing and of satisfactory reconstruction. (including, but not limited to, fees and charges of engineers, architects, attorneys and other professionals), and BBCRA shall be entitled to an appropriate decrease in the Contract Amount. If, however, such Work is not found to be defective, Contractor shall be allowed an increase in the Contract Amount and/or an extension of the Contract Time, directly attributable to such uncovering, exposure, observation, inspection, testing and reconstruction. 22.3. If any portion of the Work is defective, or Contractor fails to supply sufficient skilled workers with suitable materials or equipment, or fails to finish or perform the Work in such a way that the completed Work will conform to the Contract Documents, BBCRA may order Contractor to stop the Work, or any portion thereof, until the cause for such order has been eliminated; however, this right of BBCRA to stop the Work shall not give rise to any duty on the part of BBCRA to exercise this right for the benefit of Contractor or any other party. 22.4. Should the BBCRA determine, at its sole opinion, it is in the BBCRA's best interest to accept defective Work, t he B BCRA m ay d o s o. Contractor s hall b ear a 11 direct, indirect and consequential costs attributable to the BBCRA's evaluation of and determination to accept defective Work. If such determination is rendered prior to final payment, a Change Order shall be executed evidencing such acceptance of such defective Work, incorporating the necessary revisions in the Contract Documents and reflecting an appropriate decrease in the Contract Amount. If the BBCRA accepts such defective Work after final payment, Contractor shall promptly pay BBCRA an appropriate amount to adequately compensate BBCRA for its acceptance of the defective Work. 22.5. If Contractor fails, within a reasonable time after the written notice from BBCRA, to correct defective Work or to remove and replace rejected defective Work as required by BBCRA, or if Contractor fails to perform the Work in accordance with the Contract Documents, or if Contractor fails to comply with any of the provisions of the Contract Documents, BBCRA may, after seven (7) days' written notice to Contractor, correct and remedy any such deficiency. To the extent necessary to complete corrective and remedial action, BBCRA may exclude Contractor from any or all of the Project site, take possession of all or any part of the Work, and suspend Contractor's services related thereto, take possessions of Contractor's tools, appliances, construction equipment and machinery at 1649 24 the Project site and incorporate in the Work all materials and equipment stored at the Project site or for which BBCRA has paid Contractor but which are stored elsewhere. Contractor shall allow BBCRA, and their respective representatives, agents, and employees such access to the Project site as may be necessary to enable BBCRA to exercise the rights and remedies under this Subsection. Ail direct, indirect and consequential costs of BBCRA in exercising such rights and remedies shall be charged against Contractor, and a Change Order shall be issued, incorporating the necessary revisions to the Contract Documents, including an appropriate decrease to the Contract Amount. Such direct, indirect and consequential costs shall include, but not be limited to, fees and charges of engineers, architects, attorneys and other professionals, all court and arbitration costs and all costs of repair and replacement of work or others destroyed or damaged by correction, removal or replacement of contractor's defective Work. Contractor shall not be allowed an extension of the Contract Time because of any delay in performance of the Work attributable to the exercise by BBCRA of BBCRA's rights and remedies hereunder. 23. SUPERVISION AND SUPERINTENDENTS. 23.1. Contractor shall supervise and direct the Work competently and efficiently, de~oting such attention thereto and applying such skills and expertise as may be necessary to perform the Work in accordance with the Contract Documents. Contractor shall be responsible to see that the finished Work complies accurately with the Contract Documents. Contractor shall keep on the Work at all times during its progress a competent resident superintendent, who shall not be replaced without prior written notice to BBCRA except under extraordinary circumstances. The superintendent shall be Contractor's representative at the.Project site and shall have authority to act on behalf of Contractor. All communications given to the superintendent shall be as binding as if given to the Contractor. BBCRA shall have the right to direct Contractor to remove and replace its Project superintendent, with cause. 24. PROTECTION OF WORK. 24.1. Contractor shall fully protect the Work from loss or damage and shall bear the cost of any such loss or damage until final payment has been made. If Contractor, or any one for whom Contractor is legally liable, is responsible for any loss or damage to the Work, or other work or materials of BBCRA or BBCRA's separate contractors, Contractor shall be charged with the same, and any monies necessary to replace such loss or damage shall be deducted from any amounts due Contractor. 24.2. Contractor shall not load nor permit any part of any structure to be loaded in any manner that will endanger the structure, nor shall Contractor subject anypart of the Work or adjacent property to stresses or pressures that will endanger it. 25. EMERGENCIES. 25.1. In the event of an emergency affecting the safety or protection of persons or the Work or property at the Project site or adjacent thereto, Contractor, without special instruction or authorization from BBCRA is obligated to act to prevent threatened damage, injury or loss. 1650 25 Contractor shall give BBCRA written notice within forty-eight (48) hours after the occurrence of the emergency, if Contractor believes that any significant changes in the Work or variations from the Contract Document have been caused thereby. If the BBCRA determines that a change in the Contract Documents is required because of the action taken in response to an emergency, a Change Order shall be issued to document the consequences of the changes or variations. If Contractor fails to provide the forty-eight (48) hour written notice noted above, the Contractor shall be deemed to have waived any fight it otherwise may have had to seek an adjustment to the Contract Amount or an extension to the Contract Time. 26. USE OF PREMISES. 26.1. Contractor shall confine all construction equipment, the storage of materials and equipment and the operations of workers to the Project site and land and areas identified in and permitted by the Contract Documents and other lands and areas permitted by law, rights of way, permits and easements, and shall not unreasonably encumber the Project site with construction equipment or other material or equipment. Contractor shall assume full responsibility for any damage to any such land or area, or to the owner or occupant thereof, or any land or areas contiguous thereto, resulting from the performance of the Work. 27. SAFETY. 27.1. The Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the Work. The Contractor shall take all necessary precautions for the safety of, and shall provide the necessaryprotection to prevent damage, injury or loss to: 27.1.1. All employees of the Work and other persons and/or organizations who may be affected thereby; 27.1.2. All the Work and materials and equipment to be incorporated therein, whether in storage on or off the Project site; and 27.1.3. Other property on Project site or adjacent thereto, including trees, shrubs, lawns, walks, pavements, roadways, structures, utilities and any underground structures or improvements not designated for removal, relocation or replacement in the contract documents. 27.2. The Contractor shall comply with all applicable codes, laws, ordinances, rules and regulations of any public body having jurisdiction for the safety of persons or property or to protect them from damage, injury or loss. The Contractor shall erect and maintain all necessary safeguards for such safety and protection. The Contractor shall notify owners of adjacent property and of underground structures and improvements and utility owners when prosecution of the Work may affect them, and shall cooperate with them in the protection, removal, relocation or replacement of their property. Contractor's duties and responsibilities for the safety and protection of the Work shall continue until such time as the Work is completed and final acceptance of same by BBCRA has 1651 26 occurred. 27.3. The Contractor shall designate a responsible representative at the Project site whose duty shall be the prevention of accidents. This person shall be Contractor's superintendent unless otherwise designated in writing by the Contractor to the BBCRA. 27.4. The Contractor shall adhere at all times to the minimum safety guidelines for construction and renovation projects as set out in Exhibit C of this Agreement. 28. PROJECT MEETINGS. Prior to the commencement of Work, the Contractor shall attend a pre, construction conference with the BBCRA to discuss the Progress Schedule, procedures for handling shop drawings and other submittals, and for processing Applications for Payment, and to establish a working understanding among the parties as to the Work. During the prosecution of the Work, the Contractor shall attend any and all meetings convened by the BBCRA with respect to the Project, when directed to do so by BBCRA. Contractor shall have its subcontractors and suppliers attend all such meetings (including the preconstruction conference) as may be directed by the BBCRA. 1652 27 EXHIBIT B PERFORMANCE AND PAYMENT BOND PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That BOND NO. (Insert name, address, and phone number of contractor) , as Principal, and (Insert full name, home office address and phone number of surety) as Surety, are held and firmly bound unto the Board of BBCRA, Boynton Beach, Florida, as Obligee in the sum of Dollars ($ ), for the payment whereof we bind ourselves, our heirs, executors, personal representatives, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, Principal has entered into a contract dated as of the __ day of ,20 , with Obligee for Contract No. , (Insert name of project, including legal description, street address of property and general description of improvement) m accordance with drawings and specifications, which contract is by reference made a part hereof, and is hereinafter referred to as the Contract. THE CONDITION OF THIS BOND is that if Principal: 1. Performs the Contract at the times and in the manner prescribed in the Contract; and 2. Pays Obligee any and all losses, damages, costs and attorneys' fees that Obligee sustains because of any default by Principal under the Contract; and 3. Performs the guarantee of all work and materials furnished under the Contract applicable to the work and materials, then this bond is void; otherwise it remains in full force. 1653 28 The Surety, for value received, hereby stipulates and agrees that no changes, extensions of time, alterations or additions to the terms of the Contract or other work to be performed hereunder, or the specifications referred to therein shall in anywise affect its obligation under this bond, and it does hereby waive. notice of any such changes, extensions of time, alterations or additions to the terms of the Contract or to work or to the specifications. This instrument shall be construed in all respects as a common law bond. In no event will the Surety be liable in the aggregate to Obligee for more than the penalty sum of this Performance Bond, regardless of the number of suits that may be filed by Obligee. IN WITNESS WHEREOF, the above parties have executed this instrument this ~ day of ,20 , the name and corporate seal of each corporate party being hereto affixed and these premises duly signed by its undersigned representative, pursuant to authority of its governing body. Signed, sealed md delivered in the presence off PRINCIPAL: W/messes as to Principal STATE OF COUNTY OF By:, Name: Its: The foregoing insmu'nent was acknowledged before me this ,as ,of on behalf of the corporation. He/she is personally known to me OR has produced not) take an oath. day of ,a , 20 , by cmporafion, as identification and did (did My Commission Expires: (AFFIX OFFICIAL SEAL) ATTEST: (Sig~mture) Name: (Legibly Printed) Notary Public, State of Serial No., If Any: SURETY: (Printed Name) Wimess Witness 1654 (Business Address) (Authorized Signature) (Printed Name) OR 29 As Attorney In Fact (Attach Power) (Business Address) (Printed Name) (Telephone Number) Witnesses STATE OF COUNTY OF The foregoing instrument was acknowledged before me this ., as of of Surety. He/she is personally known to me OR has produced (did not) take an oath. My Commission Expires: (AFFIX OFFICIAL SEAL) __ day of , 20 , by as Surety, on behalf as identification and did (Signature) Name: (Legibly Printed) Notary Public, State of Serial No., If Any: 1655 30 BOND NO. PAYMENT BOND and BY THIS BOND, We, (Insert name, address and phone number of contractor) (hereinafter called the "Principal") ~.nsert name) located at (Insert address and phone number) chartered and existing under the laws of the State of (hereinafter called the "Surety"), , a surety insurer and authorized to do business in the State of Florida, are held and firmly bound unto the BBCRA, Boynton Beach, Florida, (hereinafter called ' the "BBCRA") in the sum of ($ ~ ) for payment o f which w e bind ourselves, o ur heirs, o ur personal representatives, o ur successors a nd o ur assignees, jointly and severally. NO. WHEREAS, Principal and BBCRA have reached a mutual agreement relating to Contract (hereinafter referred to as the "Contract") as of (the bid award date for projects thereto) for the purpose of (Insert name of project, including legal description, street address of property and general description of improvement.) said Contract being made a part of this Bond by this reference. NOW', THEREFORE, THE CONDITION OF THIS BOND IS THAT IF THE PRINCIPAL: Shall promptly make payments to all claimants as defined in Section 255.05(1)(a), Florida Statutes, supplying the Principal with labor, materials or supplies, as used directly or indirectly by the Principal in the prosecution of the work provided for in the Contract; and Shall pay the BBCRA for all losses, damages, expenses, costs and attorneys' fees, including those resulting from appellate proceedings, that the BBCRA sustains because of a default by the Principal in contravention to the Contract in regard to payment for such labor, materials, or supplies furnished to the Principal; then this Bond is void; otherwise this Bond remains in full force and effect. 1656 31 BE IT FURTHER KNOWN: Any changes in or under the Contract and compliance or noncompliance with any formalities connected with the said Contract or alterations which may be made in the terms of the said Contract, or in the work to be done under it, or the giving by the BBCRA of any extension of time for the performance of the said Contract, or any other forbearance on the part of the BBCRA or Principal to the other, shall not in any way release the Principal and the Surety, or either of them, their heirs, personal representatives, successors or assigns from liability hereunder, notice to the Surety of any such changes, alterations, extensions or forbearance being hereby waived. Certain claimants seeking the protection of this Bond must timely comply with the strict requirements set forth in Section 255.05, Florida Statutes, and as otherwise provided by law. As concerns payment for labor, materials and supplies, as affects certain claimants, no legal action shall be instituted against the Principal or Surety on this Bond after one (1) year from the performance of labor or the completion of delivery-of the materials or supplies as is specifically mandated pursuant to Section 255.05, Florida Statutes. THIS BOND DATED THE __ DAY OF ~ 20 issue by the Surety or by the Surety's agent and the date of such agents power-of-attorney). Signed, sealed and delivered in the presence of: Witnesses as to Principal PK1NCIPAL: By:. Name: Its: (the date of STATE OF COUNTY OF The foregoing instrument was acknowledged before me this , of on behalf of the corporation. HeYshe is personally known to me OR has produced not) take an oath. day of ,a , 20 , by corporation, as identification and did (did My Commission Expires: (Signature) Name: (Legibly Printed) (AFFIX OFFICIAL SEAL) Notary Public, State of Serial No., If Any:. 1657 32 ATTEST: SURETY: (Printed Name) (Bu~ine~ Address) (Authorized Signature) (Printed Name) OR As Attorney In Fact (Attach Power) (Business Addl'ess) (Printed Name) (Telephone Number) Witness Witness Witnesses STATE OF COUNTY OF The foregoing instrument was acknowledged He/she is personally known to me OR has produced My Commission Expires: (hi'FIX O~FICIAL SEAL) before me this of day of , 20 , by as Surety, on behalf of Surety. as identification and did (did not) take an oath. (Signature) Name: (Legibly Printed) Notary Public, State of Serial No., If Any: 1658 33 EXHIBIT C INSURANCE AND SAFETY INSURANCE - BASIC COVERAGES REQUIRED The Contractor shall procure and maintain the following described insurance, except for coverages specifically waived by the BBCRA. Such policies shall be from insurers with a minimum financial size ofvm according to the latest edition of the AM Best Rating Guide. An A or better Best Rating is "preferred"; however, other ratings if "Secure Best Ratings" may be considered. Such policies shall provide coverages for any or all claims which may arise out of, or result from, the services, work and operations carded out pursuant to and under the requirements of the Contract Documents, whether such services, work and operations be by the Contractor, its employees, or by subcontractor(s), or anyone employed by or under the supervision of any of them, or for whose acts any of them may be legally liable. The Contractor shall require, and shall be responsible for assuring throughout the time the Agreement is in effect, that any and all of its subcontractors obtain and maintain until the completion of that subcontractor's work, such of the insurance coverages described herein as are required by law to be provided on behalf of their employees and others. The required insurance shall be obtained and written for not less than the limits of liability specified hereinafter, or as required by law, whichever is greater. These insurance requirements shall not limit the liability of the Contractor. The BBCRA does not represent these types or amounts of insurance to be sufficient or adequate to protect the Contractor's interests or liabilities, but are merely minimums. Except for workers compensation and professional liability, the Contractor's insurance policies shall be endorsed to name BBCRA as an additional insured to the extent of its interests arising from this agreement, contract or lease. The Contractor waives its right of recovery against the BBCRA, to the extent permitted by its insurance policies. The Contractor's deductibles/self-insured retentions shall be disclosed to the BBCRA and may be disapproved by the BBCRA. They shall be reduced or eliminated at the option of the BBCRA. The Contractor is responsible for the amount of any deductible or self-insured retention. Insurance required of the Contractor or any other insurance of the Contractor shall be considered primary, and insurance of the BBCRA, if any, shall be considered excess, as may be applicable to claims obligations which arise out of this agreement, contract or lease. 1659 34 Workers Compensation Coverage The Contractor shall purchase and maintain workers compensation insurance for all workers compensation obhgations imposed by state law and with employers liability limits o fat least $100,000 each accident and $100,000 each employee/S500,000 policy limit for disease, or a valid certificate of exemption issued by the state of Florida, or an affidavit in accordance with section 440.02(13)(d) and 440.10(1)(g) Florida Statutes. ContractOr shall also purchase any other coverages required by law for the benefit of employees. General, Automobile And Excess Or Umbrella Liability Coverage The Contractor shall purchase and maintain coverage on forms no more restrictive than the latest editions of the Commercial General Liability and Business Auto policies of the Insurance Services Office. Minimum limits of $1,000,000 per occurrence for all liability must be provided, with excess or umbrella insurance making up the difference, if any, between the policy limits of underlying policies (including employers liability required in the Workers Compensation Coverage section) and the total amount of coverage required. General Liability Coverage - Occurrence Form Required Coverage A shall include bodily injury and property damage liability for premises, operations, products and completed operations, independent contractors, contractual liability covering this agreement, contract or lease, broad form property damage coverages, and property damage resulting from explosion, collapse or underground (x,c,u) exposures. Coverage B shall include personal injury. Coverage C, medical payments, is not required. The Contractor is required to continue to purchase products and completed operations coverage, at least to satisfy this agreement, contract or lease, for a minimum of three years beyond the BBCRA=s acceptance Of renovation or construction projects. Business Auto Liability Coverage Business Auto Liability coverage is to include bodily injury and property damage arising out of ownership, maintenance or use of any auto, including owned, nonowned and hired automobiles and employee nonownership use. 1660 35 Excess or Umbrella Liability Coverage Umbrella Liability insurance is preferred, but a n Excess L iabihty equivalent m ay b e allowed. Whichever type of coverage is provided, it shall not be more restrictive than the underlying insurance policy coverages. Umbrella coverage shall drop down to provide coverage where the underlying limits are exhausted. Evidence/Certificates of Insurance Required insurance shall be documented in Certificates of Insurance. If and when required by the BBCRA, Certificates of Insurance shall be accompanied by documentation that is acceptable to the BBCRA establishing that the insurance agent and/or agency issuing the Certificate of Insurance has been duly authorized, in writing, to do so by and on behalf of each insurance company underwriting the insurance coverages(s) indicated on each Certificate of Insurance. New Certificates of Insurance are to be provided to the BBCRA at least 30 days prior to coverage renewals. Failure of the Contractor to provide the BBCRA with such renewal certificates may be considered justification for the BBCRA to terminate this agreement, contract or lease. Certificates should contain the following additional information. 2. 3. 4. Indicate that BBCRA is an additional insured on the general liability policy. Include a reference to the project. Disclose any self-insured retentions in excess of $1,000. Designate BBCRA as the certificate holder as follows: BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Attention:Susan Vielhauer, CRA Controller 639 East Ocean Avenue, Suite 107 Boynton beach, Florida 133435 5. Indicate that the BBCRA shall be notified at least 30 days in advance of cancellation. Receipt of certificates or other documentation of insurance or policies or copies of policies by the BBCRA, or by any of its representatives, which indicate less coverage than required does not constitute a waiver of the Contractor's obligation to fulfill the insurance requirements herein. If requested by the BBCRA, the Contractor shall furnish complete copies of the Contractor's insurance policies, forms and endorsements, and/or such additional information with respect to its insurance as may be requested. For Commercial General Liability coverage the Contractor shall, at the option of the BBCRA, provide an indication of the mount of claims payments or reserves chargeable to the aggregate amount of liability coverage. 1661 36 G PROFESSIONAL LIABILITY/MALPRACTICE/ERRORS OR OMISSIONS INSURANCE The Contractor shall assure that all design professionals, a~chitccts, and engineers used on the Project will purchase and maintain professional liability or malpractice or errors or omissions insurance with minimum limits of $1,000,000 per occurrence. If a claims made form of coverage is provided, the retroactive date of coverage shall be no later than the inception date of claims made coverage, unless the prior policy was extended indefinitely to cover prior acts. Coverage shall be extended beyond the policy year either by a supplemental extended reporting period (ERP) of as great duration as available, and with no less coverage and with reinstated aggregate limits, or by requiring that any new policy provide a retroactive date no later than the inception date of claims made coverage. ~ MINIMUM PROJECT SAFETY REQUIREMENTS The following safety requirements represent the minimum conditions which shall be met by all Contractors and subcontractors performing work for BBCRA. The Contractor shall be responsible to ensure his compliance with all State and Federal safety regulations as specified in BBCRA contract documents. Reported or observed violations of OSHA (29 CFR 1910 or 1926) and other regulations shall be brought to the attention of the BBCRA project manager and BBCRA Safety Office and shall be immediately corrected bythe Contractor. Failure to comply with required safetyprocedures shall result in the suspension of the Work of the Contractor until such time as his operations are brought into compliance. Items which are not corrected or that are disputed by the Contractor may be referred by the BBCRA to either the project insurance coordinator or the Department of Labor and Employment Security, Division of Safety, for inspection or interpretation. The Contractor shall take reasonable precautions for work place safety and shall provide reasonable protection to prevent damage, injury, or loss to employees on the work site and to other persons who may be affected by the Work. (1) (2) The Contractor shall provide all necessary safety equipment for BBCRA staff, employees, and Visitors to enter the work site. This equipment mayinclude hard hats, hearing protection, safety glasses, or any other safety items deemed necessary by the Contractor or required by State or Federal safety regulations. Construction vehicles on the work site shall always be operated in a safe manner. The Contractor shall take appropriate action to ensure the safety of BBCRA staff, visitors, and the general public while operating work. v chicles a t a controlled construction s itc. W here conditions warrant, or at the request of the BBCRA, temporary barriers shall also be established for these traffic areas. 1662 37 (3) The Contractor shall prominently mark the work site and ensure its security. Site security shall include appropriate fencing, barricades, warning tape, covered walkways and warning signs. In no instance shall a work site be accessible, without obvious warning, to BBCRA staff, visitors, or the general public. At a minimum, the project site shall be posted with the appropriate trespass warning signs as specified in Section 810.09(2)(d), Florida Statutes: THIS AREA IS A DESIGNATED CONSTRUCTION SITE; ANYONE TRESPASSING ON THIS PROPERTY SHALL, UPON CONVICTION, BE GUII,~ OF A FELONY; DANGER, CONSTRUCTION SITE. AUTHORIZED PERSONNEL ONLY, and other general safety warning signs, i.e., HARD HAT AREA, as are deemed necessary by the Contractor and project manager. (4) In the event barricading of a work site is not feasible, alternative measures maybe used upon prior approval by the BBCRA. Alternative measures may include, but are not limited to, working during off hours such as nights, weekends, or holidays, or the providing of temporary accommodations for building occupants (to be prearranged, if necessary, at the discretion of the BBCRA). (5) The Contractor shall ensure compliance with all fire safety codes at the work site, especially as to egress, during the construction phase of an occupied facility. In no instance, (except where impractical and with the prior approval of the BBCKA and the appropriate life safety code inspector), shall the life safety code components of an occupied facility be reduced or otherwise compromised. A set of these construction plans, with a signature of approval by the appropriate life safety code inspector, shall be kept at each construction site and available for routine inspection. The Contractor shall communicate with each subcontractor as to scheduling of events that may pose hazards or inconveniences to building occupants. The Contractor shall also ensure that appropriate scheduling information is also conveyed to the project manager. (6) Noise, dust, and the use of chemical products may create inside health hazards at the work site to building occupants requiring that the Contractor to adhere to the following guidelines at a minimum: (a) The Contractor shall initiate construction and en~neering safety controls to minimize exposure of dusts, noise, and chemical odors to building occupants. These controls may involve the construction or use of temporary walls, plastic barriers, mechanical ventilation, elimination of make-up air returns from work areas, pressurizing occupied areas, or a combination of several methods. The Contractor shall coordinate all such engineering efforts with the project manager, and these control measures shall require prior approval by the BBCRA. In cases where these efforts may not be feasible, alternative work schedules on evenings and weekends may be instituted as a part of this process. Co) Material Safety Data Sheets (MSDS) shall be provided for all hazardous substances 1663 38 used on the project or brought on the job site. These products include, but are not limited to, paints, solvents, roofing compounds, and cleaning compounds. (c) Appropriate precautions shall be taken to prevent occupant exposure to hazardous respirable dusts, contaminants, and fumes from welding, cutting, or drilling of concrete and masonry, or the operation of internal combustion engines. The Contractor shall also determine whether respirable crystalhne silica, which i s a potential carcinogen contained in many building products, is present at the work site. Control of dusts from these types of products and operations shall be an essential safety requirement for the Contractor. (7) (d) The ContraCtor should be aware of other buildings adjacent to his work areas and shall be prepared to take necessary actions to prevent the spread of dusts and fumes to those facilities. The Contractor shall ensure that all emergency notifications, including those for fires and medical needs, shall be promptly made by dialing 911 dispatchers. The Caller should state the exact location of the work site emergency, the nature of the emergency, and specifically indicate if medical or fire services are needed. (8) (9) (10) (i1) (12) The Contractor agrees and understands that all BBCRA construction/renovation sites shall be subject to periodic inspection by life safety code inspectors, Florida Department of Labor and Employment Security, Division of Safety, Occupational Safety and Health Administration, Florida Department of Environmental Protection, Environmental Protection Agency, and other Federal, State, or County regulatory agencies. The Contractor shall provide adequate refuse containers for the disposal of construction debris. Refuse shall not be allowed to accumulate on the project site grounds, and the Contractor shall ensure that these containers are subsequently emptied on a regular basis. Water runoff and soil erosion from the project site shall be controlled by the Contractor pursuant to the regulations of the Florida Department of Environmental Protection. Water-based paint and stain products shall be used by the Contractor in the place of solvent- based products where the application so permits. Use of organic solvent-based products shall be used only where absolutely necessary and with the prior approval of the project manager. Lead-containing paints shall not be normally used or specified for any application. If the use of lead-containing paint is essential for a specific application, prior approval from the project manager or BBCRA shall be obtained before their use. The use of any products containing toxic metals, especially those regulated by Resource 1664 39 Conservation and Recovery Act (RCRA), (i.e. lead, chromium, barium, silver, arsenic, cadmium, mercury, selenium), on the work site shall be avoided. Prior approval for use of these metals shall be obtained by the Contractor from the project manager. (13) The use of any radioactive materials by the Contractor on project sites shall require pre- approval. Copies of appropriate certifications, licenses, testing, and inspection records shall be provided by the Contractor to BBCRA for review. (14) The County maintains programs for the identification and abatement of asbestos containing building materials. Asbestos abatement can only be performed by state licensed asbestos abatement contractors. General contractors, therefore, shall not be authorized to remove or disturb any asbestos containing materials. Although efforts are made to identify or remove such asbestos containing materials prior to renovations, the possibility exists that asbestos materials may be encountered at a work site. If so, Contractors who encounter such materials shall immediately stop work and notify BBCRA. (15) The above-cited guidelines represent minimum expectations and actions which shall be taken by Contractors while under contract for. BBCRA construction and renovation projects. These guidelines are not all inclusive and will be revised as necessary. In the event these guidelines conflict with other contract documents, the most stringent application shall apply. Any questions or disputes should be brought to the immediate attention of BBCRA. 1665 40 EXHIBIT D BBCRA OF FLOPJI)A STATE OF FLORIDA RELEASE AND AFFIDAVIT Before me, the undersigned authority, personally appeared , who after being duly sworn, deposes and says: (1) In accordance with the Contract Documents and $ paid, and waives for itself and its subcontractors, materialmen, successors and assigns, all claims demands, costs and expenses, whether in contract or in tort, against the Board of BBCRA, Florida, ("BBCRA") relating in any way to the performance of the Agreement between Contractor and BBCRA dated , 20 , for the period from to in consideration of ("Contractor") releases (2) Contractor certifies for itself and its subcontractors, materialmen, successors and assigns, that all charges for labor, materials, supplies, lands, licenses and other expenses for which BBCRA might be sued or for which a lien or a demand against any payment bond might be filed, have been fully satisfied and paid. (3) Contractor agrees to indemnify, defend and save harmless BBCRA from all demands or suits, actions, claims of liens or other charges filed or asserted against the BBCRA arising out of the performance by Contractor of the Work covered by this Release and Affidavit. (4) This Release and Affidavit is given in connection with Contractor's (monthly/final) 1666 41 Application for Payment No. ~ CONTRACTOR: Wimesses By: Its: Date: President [Corporate Seal] STATE OF FLORIDA BOYNTON BEACH, FLORIDA The foregoing instrument was acknowledged before ., 20.__, by .,a corporation. He/she is personally known to me OR has produced identification and did (did not) take an oath. me this day of , as of corporation, on behalf of the as My CommissionExpires: (AFFIX OFFICIAL SEAL) (Signature) Name: (Legibly Printed) Notary Public, State of Serial No., If Any:. 1667 42 EXHIBIT E FORM OF CONTRACT APPLICATION FOR PAYMENT - AIA DOCUMENT #G702, 1992 EDITION - AIA DOCUMENT #G703, 1992 EDITION 1668 43 EXHIBIT F CHANGE ORDER CHANGE ORDER NO. CONTRACT NO. TO: DATE: PROJECT NAME PROJECT NO. Under our AGREEMENT dated ,20~ ****************************************************************************** You hereby are authorized and directed to make the following change(s) in accordance with terms and conditions of the Agreement: FOR ($ THE (Additive) (Deductive) ). Original Agreement Amount Sum of Previous Changes This Change Order (Add) (Deduct) Present Agreement Amount Sum of: The time for completion shall be (increased/decreased) by ( ) calendar days due to this Change Order. Accordingly, the Contract Time is now ( ) calendar days and the final completion date is . Your acceptance of this Change Order shall 1669 44 constitute a modification to our Agreement and will be performed subject to all the same terms and conditions in our Agreement indicated above, as fully as if the same were repeated in this acceptance. The adjustment, if any, to this Agreement shall constitute a full and final settlement of any and all claims arising out of or related to the change set forth herein, including claims for impact and delay costs. The Contract Administrator has directed the Contractor to increase the penal sum of the existing Performance and Payment Bonds or to obtain additional bonds on the basis of a $25,000_.00 or greater value Change Order. Check if applicable and provide written confirmation from the bonding company/agent (attorney-in- fact) that the amount of the Performance and Payment bonds have been adjusted to 100% of the new contract amount. Accepted: ,20~ By: Contractor By: Architect/Engineer By: Owner \UGCDE_FSkLIBRARY~1998k980465kAGMTxBurkhardt Construction, In¢ Agrecmentdoc 1670 45 MA¥-08-03 1S:11 ~RO~,Co~en Chero£ Ooo~ ~zrol ID:9~47714823 PA~E 2/12 ~ag~ 2 The proposed improvements have been identifi~l in the RFQ. Numerous schematic designs have been completed for these improvements. It is the of the CRA to have the D~i~uildzr utilize thezz schematic designs as tho unde~amding of the d~ired "look" of the fmizhed improvements. Additionally, ther~ has b~m a new development approved adjacent W ~e pm~ ~n ~ ~ul~ ~si~ ~d i~i~ly w~ of~e n~ ~a ~e ~ of ~is pwj~ ~ ~ ~e ~ el~ of~ d~elopm~t will ~ c~sid~ wh~ ~ ~e p~s for ~e C~. We have ~ ~low ~me of~e ~~ im~~ ~t ~1 ~ ~i~ ~ ~e ~i~. I. ~o ~sion ofBo~Wn ~h B~I~ ~il ~d due ~ ~m U~l W ~e h~! W~y ~d ~ll ~ ~si~ ~ sup~ ~m~ vehicl~ ~d ~ibly shoe ~icl~ ~ well. ~t of~e vehicul~ ~ w ~ n~ d~el~m~t ~ e~im will ~me a ~~ ~m~o. 2. ~= impwv~en~ W B~n ~h Boul~ ~ll ~cl~e ~e ~~on ofU~l ~d ~li ~d am~ of20~ w 3. ~em ~ll ~ si~i m~ifi~o~ ~ ~ ~z ~~on of U~I only. Drainage 1. Tho anticipated improvements will address water quality for thc road rights-of*way whereas water quantity will be bssed upon the dedicat~l road right-of-way and adjacent properties. 2. ~ on existing elevations, initial recommended design solutions will bz determined following the completion of the hydraulic analysis as identified within the attached scope of work. Utilities 1. Place fire hydrants as necessary to maintain spacing as required by the City. 2. There are no pwposecl improvements to the sanitary seaver 3. Provide coordination to have thc existing minor overhead utilities replaced underground. COnderground/ng of utilities by o~ers) 1671 MA¥-08-83 IS:12 ~ROM:Goee~ CheeoF Dood~ ~zeol ID:8~47714823 PAG~ 3~1~ Pnge 3 of 12 I, Pedestrian Poles will be the recommended lighting sy~em for the entire project_ 2. The recommended lighting system design should reflect the current light poles placed within the CRA. Landscaping I. I. ands~ape themes will be consistent az to unify the entire project area and allow for some flex~ility within the overall ~oncepts. 2- Landscape improvements assum~ tho installation of major street trees within the project area along with a significant entry feature into &e proj~'t area. I, The boardwalk will incorporate an en/ry feature az it connects into the extension of Boynton Beach Boulevard. 2. The boardwalk shall incorporate a themo as identified by the CRA. 3, The boardwalk will incorporate open-air pavilion(s) as identified by the CRA, 4, The board~ will meander along the limits of the existing m~mgrov~, within the limits of the CRA lxivat~ly owned submerged l~nd, and tie into the existing boardwalk north of the proposed extension ofB~ynton Beaah l~ulevard. 5. The boardwalk will be lighted for pedestrian use and provide area for entertainment with water, sc~vcr, con~ntmication end ele~ical utilities. Additionally, empty conduits will be included in the design for future use by the Owner. 1672 MA¥-08-03 15,12 PRON,Goeen Chero£ Doody Ezrol ID,8547714823 PAGE 4/12 l~age 4 of 12 $COI~E OF SERVICES Task 1 -lqnnl Snrvey Coordination/Dam Collection This task will consist of coordinating improvements made within the area sin~ the completion of the latest survey and r, oordinating the additional survey requi~e~nents. The coordination activities will be limit~ to an initio. I windshield" survey by the Design/Builder and survey c~v chief to identify significant changes in the physical environment sin .~e the eomple~d survey., Based on these findings, the survey will be updated to reflect the existing conditions. The D~gn/Build~r will ~olio~t readily availablo information including information provided by the Client such as the ~xisting tn~hym~ay and natural resourees within the project vl. eintty ~md conduct field reconnaissance to clutrncteriz~ theae resources. The DesilpdB~i~ will provide a survey for the engineering design. This will inolude the location of surfa~ features, inverts and 'locations of storm/sanitary stmotures, cross-se~ions at 50-foot intervals, ~md providing a bas, line of surv~. Upon completion of the 30% eff~rt, additional survey will be requir~l along the Inm~al Waterway. Task 2 -Design Development 2.1 Design Development Plans A base map of the existing c°~ditions will be p~par~l, ~ a ~e of 1' - 40' (1 l'x 1 ~, ~l~ng &e u~ ~ ~d info~afion ~hg obm~ ~ T~ I, W~in ~is T~k ~ will ~ply ~e ~t~ ~ ~o~ M a~mv~ ~ ~e C~ to &e pm~ ~y in p~ vi~. ~e ~n~ of~e ~ will ~ sho~ to cl~ly d~o~ ~e oha~ct~ of ~e ~~ ~d will incl~e: 2. I.1 2,I .2 2. I3 2.1.4 2.1.5 2.1.6 2.I.7 2. I.8 2.1.9 Layout of travel lanes ~md curbing options Layo~ and material selection for sidewalk Preliminary siz~ and selection of planting material Layout and selection for irrigation system Layout and selection of pedestrian lighting system Lsyout and selection ofentry features Layout, siz~ and m~e~rial of shade stru~res and open air pavilions Development oftheming and arts program unique to Boynton Beach Layout, size, and material of' boardwalk 1673 Page 5 of 12 After the base mapping is ~ a field walk through will be condu~i to verify existing conditions with the CRA. Design considerat/ons listed above Will be addressed and reviewed to remefinn CRA con~nsus prior to the final preparation of the design development plan ~ During the design development tnsk, the Design/Builder will recommend a final pedestrian lighting system based on CRA input. During this task, tbe street lighting illumination level(s) will be established based on tho City's standat:ds for this area. The Design/Builder will provide a layout of lighting based on the recommended illumination levels and approved pedestrian pole and luminaries. The final system will identify'pole and lumina/re manuf'actvrer, lamp type and wattag~ and mounting height. Final determination on flhmhation level(s) will be critical to the overall strcetsi~po theme, as the required spacing of light poles ' will drive other beautification elemngs. Also during this task, the Design/Builder will present and discuss with the CRA, our recommendations that will be presented in the Teclmical Memorandum . prepared upon the complegon of Task 4. This memorandum will summarize issues related to tho pmje~-t that require consid~a-a'don, our discussions ~ the various jurisdictional agencies, and our recommended ~Unt~gy for proceeding. 2.2 Meetings The Design/Builder shall a~end two (2) coordination meetings to discu.~ other factors that may determine how the. construction document set is prepared, such as phasing and location of areas to accommodat~ future d~v'elopment. In addition to the coordination meetings~ a project kick-offmeeting will be held to coordinate the elements of the project end outline the project schedule and obtain copies of mnterials that the CRA currently bas that will be needed by the Design/Builder for this assignment. After coordination w/th thc peam/tting aEen¢ies and before the completion of the 30% dooumentg ~he eon.mltant will attend a project walk-thru with the contractor and the CRA representatives to review the/mplementat/or~ of the project. This meeting/s intended to obta/n consensus o£tho subrn/ttnl as it relates ~o connectivity with the surround/ng arc, ts prior to completion of the del/retable. 2.3 Estimate of Probable Design/Build Cost A preliminary estimate of Probable Design/Build Cost will be provided at the completion of the 30% Design Package. 1674 Fage 6 of 12 Task 3 - Construction Documentation 3.1 30% Construetion Documents The DesigrdBuildcr will develop e 30% plan sot basod upon the approved plans developed during &e design dovelopmont process. This ~0% plan set will show the geometric layout over top of the survey. The basis for the construction documem set will be the approved design development from Task 2, City of Boymon Beach Design Standards and FDOT's design standards as found in The Roadway and Traffic Design Standards dated 1994'. Approximately nine (9) copies of the 30% plans will b~ submitted to the CRA for distribution to the appropria~ dqa~rUn~fls for their review. After sufficient ~view time, a mooting will be scheduled with CRA staff to review the ~0% plan set. Tho purpose of the meeting will be to review the 30°,4 plan set comments, discuss r~isions and design decisions, solicit additional comments from CRA staffcon¢luding the meeting with an approved Plan. Two copies ofth~ approved 30% phm s~t will be forwarded to each utility ~ompany known to otmat~ in the vicinity of the projeot F. ach utility company will l~ requested to return one set of redlined plans, identtfyin$ the horizontal and. vortical location oftheir faoilitie.% to the ~!lineer. The eagtfle~r will log in each set of plans when returned by the util/ty companies. This information will be added to the plans. We will attend up to two meetings with CRA staffand the utility companies to review the project and potential impacts to the mility ovdlors. In general, the set orS0% plans may contain the following information: $.1.1 Cowr b'7~et A cover sheet utilizing ~he standard Boynton Beach CRA cover sheet will be provided. 3.1.2 lI'yptcal Roadway Sections Typical s dons will be pr ar , dm/ling the propos work for mainline and ~ross str~ construction. It is anticipat~l that two typical sections will b¢ r~quired, one typical d~r/bing ¢oaslzu~ion on · Boymon Beach Boulevard and one for cross streets. The Consultant will retain a geotechnical-engineering finn. The geoteohnieal sub-consultant will obtain exiting soil p~rcolation rates, pavement cores; evaluate the existing per,neat and subgrade conditions; and prepare a r~port summarizin$ their findings as well as providing a pavement design recommendation. 1675 MA¥-~8-03 lS,13 ~OM,Go~en Che~o£ Dood~ Hz~ol 1D=9S~??14923 PAG~ ?/1E r $,L$ $.I.# $.1.6 $.1.7 HorttontH and C~ornttrie Roadway lrnprov~ Horizontal alignm~ and geometric imgrovem~mta will b~ dc'~alled on the survey plan ah~ta. Proposal mainline and ~rosa stre.~t vortical profile gradca will not bo dovoloped during tiffs pha~. C,~neral Note~ {3en~,al nom$ defining the basia of design and constnmtion r~/uiremeat$ will be provided F_~risting Utilities Utility !nformation, as obtained during $urv~t data e, oll~'tion and. the information provided by the mspoXtivo utility own~-ra, will Im added to Drainage Im~rov~rnent~ 3.1.7. I We will attend up to five (5) coordination m~-ti~ga with various ttmm m~anb~ra and the CRA during the ¢our~ oftbe dcaig~ and pmmittin$ proofs. Tho m~dng$ will oon$ist ora proje~ ktok- offmo~dng, a m~ting to r~vi~v the cotm~ptual $totmwat~ to submittal to the South Florida Wa~r Management Diatriot (8FWMD), a me, ting with the CRA ~o mvi~w the Final D~ign Pae, kag~, and oho discretionary m~ting to be 3.1.7.2 A hydraulio analysis will be conducted on tim proj~t area. During th~ analyai$, tho volumo of stormwatar runoffwill e. aleulated from tl~ dcaign storm, the oapaolty of tho Misting quality l~lUionta from the initial mnoffofstormwamr will' be calculated. Following the calculation of~cca$ $tormwat~r volume and wamr quality a$$~amant, an analyaia ofwamr quality improwmeat$ techniques will bo conducted to a oombination ofmothod$ to ptovido watar quality goala. Various m~hod$ inoluding on-ait~ diagoaal, oil-wator $¢paratora, aodimentation sumps, dise, harg¢ mmhod~ will · va!uated to provide w~tcr quality t~atment goala within the projtmt area. Methods pr~vio~t$1y dovelopM for the City and SFWMD will b~ used to m~-t th~ wat~ quality requirmnent~. 1676 Page 8 of 12 3.1.8 $.1.9 $.1. I0 $.I. II $.1.12 3. 1.7.3 Following the hydraulic analys~ tho Design/Build~ will prepar~ acone, e~,*l design for improvearmats totho stonn~ eolleotion and disposal syst~ns within the projoc~ area. The conceptual design will include locations and capac~ of camh basitts and io~ized disposal systems (e.g., French drnln-n a~d drainage wells), and a listing of details to include into clm~Rge features. Landscape, ttarclscape trod Irrigation Improvements Landscape and irrigation layouts will be provided az outlined within the approved design d~velopment plans ~ in Task 2. Included will b~ ' the mainlin= layout of the irrigation ~ for ~h~ proje~. Gateway~Entry Features and Boardwolk Pavilions Plans, sections and preliminary details for the projeot gateway/entry featm~ and the boardwalk open air pavilions will be provided es outlined within the approved design development plans created in 27~mtng and Comamntty art~ program Baaed on the theming oonoept~ approved in the design development plans, we will work with the local arts conununity to prepare an arts program integrated into the overall planned improvements. The Design/Builder will coordinate plan preparation of arts and theming elemema for pricing by the DesillnrBuilder. P~destrlan Ltgl, t~g Improwment~ $cbemati¢ pedtna~ lightin~ layont~ will be provided based on a teoomm~d~ foot caadle illumioation level developed by the CRA and the Desi~utlder team within Task 2. ~oardwalk Impravernent~ Horizontal alignments along with the layout of the vertical aesthetic elements of the boardwalk will be provided based upon th~ approved design development plans. 1677 ~.X~mIT ~0 ' Page 9 of 1~ Sd. IS Intersection Improvements There are two large inm~cttons ~md two smaller int~s~ions that will b¢ improv~i aa part of this project. TI~ mo~ significant ~ona ar~ at the intersection ofU$-I ~nd Boynton Beach Boul~vmxi and NE 6th Street and Boynton Beach Boulovard. The $~om~ry oft]~ intersections will be evaluated and recommendations for e~h*~cement$ to the goom~y as woll as aoath~tic improvzrnents will be dovolopod. Additionally, initial signal modificationa/additiona will b~ r~vizw~d and dzvelol~l as part of this t~k for the US- 1 ~om The two mailer intetaections ~r~ both along Boynton Bzach Bouizvard and ar~ a~ the entrances into the new development at the nmrJlla. Thee interlam~on$ will be coordinat~ wihh the d~velopment plan to b~ consistent mid will also bz consistent with the owrall th~me ofth~ stmztsca~ project. Plan set summary of estimated sheets: Cover Sheet 1 Typical Sections 1 Centerlin¢ Control Sheet 1 Plan and PrOfile Shezt~ (Ro~w~y) 6 Misc~llaneou$ Construction DotaiIs 2 Miscellaneous Drainage Details 2 Utility Plan~ and Details 3 Signing and Pavement Marking Plans 3 Lan~ Horizontal Control Phns 6 Typiead Sections and Ar~ Enlargements 7 Irrigation Plans and D~udls 6 Electrical Plans and Details 6 HaM/Sofmcaqm Dvtails 6 Theming and Arta Plans and Details 4 Gateway a~d Entry Feature Plans and Sections 2 Pavilion Plans and Se~tiona 2 Boardwalk Horizontal Control Plans 6 Boardwalk Detail Sheets $ Boardwalk Structural Detail Sheets not in this submittal Total Numi~r of Sheets 1678 Page 10 of 12 The Design/Builder will provide approximately I0 copies of the 30°,4 construction document plan set to the CRA for distribution to the appropriate depadments for their review. Afl~ sufficient r~view time, a meeting will be scheduled with CRA to review the 30°,4 design plans. Task 4 - Initial Permit Coordination and Data Collection It i$ anticipated that numcrou~ permits wiII bo required for the improvements ' associated with this project from regulatory agencies. Additionally, thoro will bo significant coordination and data collection efforts to obtahl the exiaGug information for the site. Such data collection will include utility Ioc~ons, as- built information, and coordination with the mm'ina developer. Listed below are the a~cJes that we may be coordinating, obtaining ex/~ting data, and conducting pre-application me~Lngs with in r~laflonshtp to the propo~! imp~vements: 4.1 4.2 4.3 4.4 4.$ 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 ~outh Florida Water Management District United State~ Army Corp of Engineers (USACE) National Matin, ?~i$1wry S~rvie~s OV3~S) United 5tate~ Fish and Wildlife ~rvice~ United Stat~s Coast Ouard (USCO) Florida Fish and WildlO% Conservation Commission (FWC) ~7orida Det~trtrrt~nt of Transportation (FDO~ Palm Beach County Tra.~c Englrte~ing Palm Beach County Utilities Florida Power and Light (FPL) ~outhern Bell Gas Company Cable Company Boymon l~each Engineering Boynton 2~each CRA Marina Developer and Profe~ional Services Team The Design/Buiid~ will prepare a Technical Memorandum that summarizes the findings and discussions with tho mgnlatory agencies. The m~norandum will also include the consultant's rexommendafions and a strategy for proceeding for the Client's consideration. 1679 Page II ofi2 Tnsk S - Pablic Meetings and Presentations Our proposal includes attendance at one Public meetin~ (CRA Board Meeting) in add/lion to the meetings that ar~ desc~'bed within the above tasks. The D~ign/Builder shall prepare ~raphios for and pr~mt the phuls to thc CRA board at the ~omlbl~tion of the 30% documents. The jnl~nt of this meeting is ~o publicly r~view the proposed improvements and approved 30% Des/~n Paoksge. Tssk 6- Utility Conversion Coordinniion If the CRA desires to place the existing overhead utility system bdow gwund, the Design/Builder will coordinate with the various utility ~ompanies the relocating of the systems underground. The ne~v underground facilities Will need to be located on our construction documenls to minimize c~ofli~s With roadway, utilities, drainage and beautification improvements. Therefo~ the coordination of th, overhead conversions to underground will iniiinted during this phase of the project. ADDmONAL SERVICES Upon your authorization, the Dosign/Build6r will provide any additiooal services that may be required beyond those described itl Task 1 through 6. The~e services may inolude bu~ are not limited to such items as the following: · Pr~mmion of additional Plans, Specie. ion% and Contract Docmnents for the improv~nmts. * Preparalion of permit applications. * Preparation of right of way acquisition sk_,~hes or descriptions. · Significant redesigns of the drainage systmn to meet additional SFWMD requiruments ~aused by changing agency criteria after our initial design is reviewed with each appropriate agency and similar factors outsid~ the consultant's control. Making traffic counts or undertaking o~ber Irai~c related analysis. Traffic signal plans. Cross-sections. Design of habitable structures including museum and theater facilities. Mitigation Plans. 1650 M~¥-~8-~3 1S~14 ~ROM,Go~n Cho~O£ Dood~ ~z~ol I0,9S47714~3 PAG~ 12/1~ Page 12 of 12 COI~FJ~NSATION We will provide the scope of services as d~ribed as outlined below. Bas/c ,Ve~/ce~ Lwnp Sum Amoun~ Uigla~/Coordtnstiou ...................... --= ......... g 24,650.0 0 Task 1- Surwy Pla~ .......................... --'------ ..... S 65,100.00 Task 2 - Design DeveiopmenL,~o~. ~ . ___$ 231, ? 50.00 Task3- Construction Plum ~au ~oj .............. - ..... - ............ 44 000 00 Task 4 - IMtlal Permit Coordination and Data Collection .... $ ' ' Task $ - Pablfe Meetings and Prmm~ons .................. $ 1 !, 000.00 Task 6 * utmty Conversion Coordination ................. $ 9 ~ $ 00.00 Subtotal $ $87,100.00 R~imbursabl~ ~es (estbnated budgets) Expense ............................................................................ $ 24,200.00 ............................. $ 10,900.00. G~otcclm~cm .................................................. Subtotal ...... $ 35,100. O0 Total $ 422,200.00 The Design/Builder wiU provide the services o~tlined in task I ~ough 6 in accordance with the time frame outlined below: Deliverable Survey Update/Coordination Design I)~v~lopm~nt Plans Construction Plans (30%) Public Mee~gs and Presen~tions U61ity Conversion Coordin~ion 1681 Schedule 6 weeks ~ Notice to .Proc~t 6 weeks at~ receipt of survey 12-16 weeks af~ design developmen~ comm~n~s are A0zr approval of 30% Plans Development Task REQUEST FOR FUNDS TO: City of Boynton Beach 100 E. Boynton Beach Blvd Boynton Beach, FI 33435 FROM: CRA City of Boynton Beach 639 E. Ocean Ave. Suite 107 Boynton Beach, FI 33436 FOR: $385,000.00 for the Janet Hall Property to be placed in escrow for purchase as per attached documents. 1616 Kurt, Just got the word from Kerry Ezrot that the Hall property is ready to have the escrow purchase amount placed with the court. This is timely in that we are signing the design/build contract for the development work on part of the property at the May 13, 2003 Board meeting. We have put the funding of the escrow amount on the agenda also. We will be sending over the request for the City's portion of the purchase, $385,000. The purchase escrow total is for $640,000; ltwill be nice to finally have the property and have the project become a reality. Doug 1615 MAY-08-03 i~,4~ FROM~Oormn ChmroF DooSy ~z~ol ID,9S47714~3 NOT A PUBLIC RECORD. THIS DOCUM~.NT PREPARED IN ANTICIPATION OF LITIGATIONAND IS INTEND~ TO BE EXEMPT FROM INSPECTION AND EXAMINATION AS A PUBLIC RECORO. THIS DO~ .REPRF~ENTS MENTAL IMPRESSIONS, ANALYSIS, LITIGATION STRATEGIES AND LEGAL THEOI~r~$. 1/1 CITY OF BOYNTON BEACH MEMORANDUM TO: CC: FROM: RE: Doug Hutchinson, Director of the CRA (via facs~il¢ 561-742-6054) Kurt Bressner, City Manager (via fazslmile 564-742-6054)/' James A. Cherof, City Attorney Kerry L. Bzrol, Assistant City Attorney ~/ Cie/of Boynton B~,_ch v. Janet Hall, Trustee (Parcels 1 - 3) Eminent Domain DATI~: May 8, 2003 This shall serve to confirm our telephone conversation of yesterday. Today I received thc final revised appraisal from Mr. Banting. The final revised valuation of the property is $640,000.00. I have had discussions with H. Adams Weaver, Esquire, counsel for Mrs. Hall. Mr. Weaver advises that they will not challenge the City's right to take thc property. Accordingly, I anticipate filing the Eminent Domain Petition wi~ the week. Simultaneously with filing the Eminent Domain Petition, Mx. Weaver; on behalf of his client, along with myself, will execute a Stipulation to be approved by the court. The Stipulation, among other things, will authorize the City to acquire the property and require the City to deposit the good faith estima~ of $640,000.00 into the court registry. Once the money is deposited into the court registry, the City will have title to the property. ]'hereafter, the matter will proceed in court in the ordinary course. Ultimately, in thc event that we cannot reach an agreement on the fidl amount of compensation m be paid to Mm. Hall for the acquisition of the property, a 12-person jury will be impaneled for purposes of conducting a trial which will establish compensation. I hereby request that you pwvide me with the City's check in the amount of $640,000.00 payable to Clerk of Court. Shoul4 you require any additional information, please contact mc. ~c~.r~ob 1614 H:~2002~020017~Hu~hi~wn (¢k rcque~t),doe Memo To: From: Subject: Date: CRA Board Douglas Hutchinson ~ Consideration of Deposit of Funds for Purchase of the Hall Property May 8, 2003 Per Kerry Ezrol the City Attorney, Staff is asking the Board to consider a requested to place the funds for the acquisition of the Hall Property in an escrow account. Attached you will find a request to City for a transfer of funds for their portion for the purchase. - i613 MEMO TO: CRA Board FROM: Susan Vielhauer ~ SUBJECT: Consideration of Deposit of Funds for Purchase of the Hall Property DATE: May 15, 2003 The City Manager and CRA had agreed to jointly fund the Hall Property purchase. At the time of discussion the City Manager had thought that $385,000.00 was identified for the acquisition by the City. This figure was accurate, however some city expenses related to the acquisition had been expended. The request to the City Manager for $385,000.00 was forwarded onto Diane Reese, Finance Director for the City of Boynton Beach. The response back from Diane Reese was that there was $ 373,149.81 remaining of the $385,000.00. The final revised appraisal valuation of the property is $640,000.00. The CRA's portion will be $266,850.19. CRA Staff is seeking approval to wire transfer $266,850.19 into Goren, Cherof, Doody & Ezrol Trust for the balance of the escrow need for the Hall Property. IX. New Business: Any person who decides to appeal any decision of the Community Redevelopment Board with respect to any matter considered at this meeting will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. 1612 The CRA shall furnish appropriate auxih'ary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits of a service, program, or activity conducted by the CRA. Please contact Douglas Hutchinson at 561-737-3256 at least twenty-four hours prior to the program or activity in order for the CRA to reasonably accommodate your request. MEMO TO' CRA Board FROM: Susan Vielhauer SUBJECT: Investment Policy and SBA DATE: May 5, 2003 Staff has revised the Investment Policy and the State Board of Administration Local Government Investment Pool Resolution according to the Direction of the CRA Board. Staff has included the suggested changes from Chairman Finkelstein in green insert wording and letter boxes on the side and Don Fenton in blue wording and blue letter boxes on the side for your consideration. Staff is in agreement with all changes proposed. Staff is seeking the approval for: The Investment Policy for the CRA. The approval to join the State Board of Administration by approving the SBA Resolution. Developing a RFQ for a Financial Advisory Firm to develop a Comprehensive Financial Plan which will look at a projected five year CRA budget and analyze the CRA needs. The Advisory Firm would be asked to provide services for investing surplus reserve funds as well as direction on financial structure for funding CRA programs and projects, this would include, but not be limited to Securing Bonds, Loans, etc. The RFQ will be brought before the CRA Board for review and approval on the June 10th Meeting. 1610 Memo To: From: Subject: Date: CRA Board Douglas Hutchinson ~ Consideration of Deposit of Funds for Purchase of the Hall Property May 8, 2003 Per Kerry Ezrol the City Attorney, Staff is asking the Board to consider a requested to place the funds for the acquisition of the Hall Property in an escrow account. Attached you will find a request to City for a transfer of funds for their portion for the purchase. _ i613 HA¥-0B-03 16:42 1/1 NOT A PUBLIC RECO~. TI~ DOCUMENT PREP~ IN ANTICIPATION OF LITIGATION AND IS INTENDED TO BE EXEMPT FROM INSPECTION AND EXAMINATION AS A PUBLIC RECORD. THIS DO~ .REPRF_~ENTS MENTAL IMPRESSIONS, ANALYSIS, LITIGATION STRATEGIES AND LEGAL CITY OF BOYNTON BEACH MEMORANDUM TO: CC: FROM: RE: Doug Hutchinson, Director of the CRA (via facsimile 561-742-6054) Kurt Bressner, City Mamger (via facsimile 564-742-6054)`/ James A. Cl~of, City Attorney Y,~ry L. Ezrol, Assistant City Attom~ City of Boynton Beach v. Janet Hall, Trustee (Parcels 1 - 3) Eminant Domain DATE: May 8, 2003 This shall serve to confirm our telephone conversation of yesterday. Today I received the final revised appraisal from Mr. Banting. The final revised valuation of the property is $640,000.00. I have had discussions with H. Adams Weaver, Esquire, counsel for Mrs. Hall. Mr. Weaver advises that they w/Il not challenge the City's right to take thc property. Accordingly, I anticipate ill/rig the Eminent Domain Pet/tion withiu the week. Simultaneously with filing thc Eminent Domain Petition, Mr. Weaver, on behalf of his cL/ent, along w/th myself, will execute a St/pulation to be approved by the court, The Stipulation, among other things, will authorize the City to acquire the property and require thc City to deposit thc good faith cst/mate of $640,000.00 into the court registry. Once the money is deposited into the court regisWy, the City will have title to the property, Thereatler, the matter vdll proceed in court in the ordinary eo~se. Ult~raately, in thc event fi/at we caanot reach an agreement on the ftfll mount of compensation to be paid to Maz. Hall for the acquisition of the property, a 12-person jury will be impaneled for purposes of conducting a trial which will establish compensation. I hereby request that you provide me with the City's cheek in the amount of $640,000.00 payable to Clerk of Court. Shoulc~ you require any additional information, please contact me. ~r~0b 1614 H:V2002\020017~Hut~hinson (ok requcat),do~ Kurt, Just got the word from Kerry Ezrol that the Hall property is ready to have the escrow purchase amount placed with the court. This is timely in that we are signing the design/build contract for the development work on part of the property at the May 13, 2003 Board meeting. We have put the funding of the escrow amount on the agenda also. We will be sending over the request for the City's portion of the purchase, $385,000. The purchase escrow total is for $640,000; Itwill be nice to finally have the property and have the project become a reality. Doug 1615 REQUEST FOR FUNDS TO: City of Boynton Beach 100 E. Boynton Beach Blvd Boynton Beach, FI 33435 FROM: FOR: CRA City of Boynton Beach 639 E. Ocean Ave. Suite 107 Boynton Beach, FI 33436 $385,000.00 for the Janet Hall Property to be placed in escrow for purchase as per attached documents. 1616 Community Redevelopment Agency Investment Policy Scope This investment policy applies to all financial assets held or controlled by the Community Redevelopment Agency in excess of those required to meet the current budgeted needs expenses other than funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds. Definitions Current Budgeted Needs shall mean, funds budgeted for the current quarter,. Current Quarter shall mean October-December. January-March. April-June, and July-August, Excess available funds shall mean all funds other than current budgeted needs~ Liquid Investment Account shall mean an account in which funds can be moved immediately to another account. Maximum length to maturity shall mean ,the maturity ,as defined in the specific instrument's investment j~olic¥. Maximum amount of excess available funds that can be invested within a specific investment instrument shall be given as a percentage. Primary liquidity shall mean the funds budgeted for current quarter needs, which are to be retained in an operating account and/o._z a liquid investment account. Investment Obiectives The following investment objectives will be applied in the management of the CRA's funds. A. Safety 1. Preservation of Capital The pdmary objective of ,CRA investment ,activities is to preserve capital and protect the pdncipal invested by leduc~ credit,and interest rate risk. [ Deleted: s ¢ Deleted: needs [Comm~l~t: Add titan or rework Don I Deleted: for the current quarter Deleted: that will be available for investment t' Deleted: that iDeleted: can not exceed the number of years (* Fomtatl~d: Underline Deleted: the Dele, red: in the overall investment Portfolio. The objective will be to Deleted: e I Deleted: risk 1610 - A nn ineliwld,,ol e~-~r~i~- eh,~ll nnf ~vn~el fh~ in~,nm~ n~n~r~fd frnrn 2. Credit Risk The CRA will maintain the Investment Portfolio, in such a manner that funds are available to meet current budgeted needs, but will minimize credit risk by: · Limiting Investment to the safest types of securities. · Pre-Qualifying the financial institution, broker,/,dealers,_,and advisers with which the CRA does business. · Diversifying the Investment Portfolio so that potential losses will be minimized. B. Interest Rate Risk - The CRA will minimize the risk that the market value of investments in the Investment Portfolio will fall due to changes in general interest rates by: · Structuring the Investment Portfolio so that securities mature to meet cash requirements for current budgeted needs, thereby avoiding the need to sell securities on the open market prior to maturity. · __MaintainincL current budgeted needs into an operating account and a liquid investment account such as a Money Market Account. (not an investment?) Liquidity - Periodically a flow analysjp will be completed in order to ensure that the Investment Portfolio is positioned to provide sufficient liquidity for current budgeted needs.(funds necessary for current budqeted needs are not to be used for investing, see scope) Yield - The CRA shall diversify its Investment Portfolio to maximize the return on the Investments while attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment dsk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. ~ ;n,,A,.4~,.~r~l'e ;e lim;f~d tn rnlof;~,,~l,; I,~,., del,, e,~,,-~.ir~l'i~e in enfi,'qn,'~finn nf ~r.~i,~,'. a fair return rela~J,:e to dsk beving assumed. ' (C~t: Staff is recommending this be taken C~t: Which ~all be defined as all securgies above ~ "~" mtmg by Stm~ md Poor or '~Aa" by Moody's ~vestor Services. - Don Fenton DeLeted: ( ( Imoerted: (Maintaining?) ( Deleted: 9) Investing f Fo~: Strlkethrough . } Deleted by Don Fenton 1610-B Investment Performance and Reportin,q In order to assist in the evaluation of the investment portfolio's performance, the CRA staff will use the performance benchmarks for short-term portfolios. The use of benchmarks will allow the Staff to measure its retums against other investors in the same markets. The State Board of Administration's Local Government Surplus Funds Trust Fund (SBA Pool) will be used as the benchmark to compare our to-the investment portfolios' yield. '-"~ ~,..,.u ,,~, ..... ~,. ,.~ .~,,.., ~ ......... ~ .... ~.,.. Prudence and Ethical Standards The standards of prudence to be used by the CRA Staff shall be the "Prudent ~ ...... ~'~ ,~ ~ ~ .V .... ~"~"'~ ~"V .V~ , "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived form the investment.'_ Employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment portfolios' program, or which could impair their ability to make impartial investment decisions. Employee will follow the State Code of Ethics located at Chapter 112 of the Flodda Statues. (Comment: Rule. Formatted: Strikethmugh [COfllfll~lt: ~rikethrough by Don Fenton 1610- C I LisUnfq of Authorized Investments -(Investment Guide Attachment I) A. (SBA) The Florida Local Government Surplus Trust Funds The CRA Staff may purchase / sell investment securities at prevailing market rates and in appropriate amoun~ thereof in: (SBA) The Flodda Local Government Surplus Funds Trust Fund at a maximum of 100% of excess available funds. The maximum length to matudty of any direct investment in the (SBA) is frae (5) years from date of investment. B. United States Government Securities The CRA Staff may invest in direct Securities or Securities in which the principal and interest are unconditionally guaranteed by the United States Government Securities including, but not limited to the following at a maximum of 100 % of excess available funds: Cash Management Bills Treasury Securities - State and Local Government Sedes (SGLS) Treasury Bills Treasury Notes Treasury Bonds Treasury Strips The maximum length to maturity of any direct investment in the United States Government Securities is five (5) years from date of purchase. C. United States Government Agencies The CRA Staff may invest in bonds, debentures, notes or callable securities issued or guaranteed by ,United States Government ~gencies, provided such obligation_s are backed by the full faith and credit of the United States Government. Such securities will include, but not be limited to the following with a maximum investment of 50% of excess available funds~and no more than 10% in any individual issue: United Stated Export - Import Bank with direct obligation or fully guaranteed certificates of beneficial ownership Farmer Home Administration certificates of beneficial ownership Federal Housing Administration debentures General Serviced Administration United States Maritime Administration Guaranteed -Title XI Financing New Communities Debentures that the United States Government Guarantees Debentures I~eleted: the f Deleted: a /D ele~e~: for investing 1610- D United States Public Housing Notes and Bonds that are guaranteed by the United States Government United States Department of Housing and Urban Development Project notes and local authority bonds The maximum length to maturity of any direct investment in the United States Government Agencies is five (5) years from date of purchase. D. Federal Instrumentalities (United States Government sponsored agencies) The CRA Staff may invest in bonds, debentures, notes or callable securities issued or guaranteed by United States Govemment sponsored agencies (Federal Instrumentalities) which are non-full faith and credit agencies limited to the following with a maximum of 50% of excess available funds ,and no more than 10% in any individual Instrumentalities: Tennessee Valley Authority Federal Farm Credit Bank (FFCB) Federal Home Loan Bank or its Board Banks (FHLB) Federal National Mort. gage Association (FNMA) Federal Home Loan Mortgage Corporation (Freddie-Macs) Including ,Federal Home Loan Mortgage Corporation participation certificates Federal student loan Marketing Association (Sallie-Mae) The maximum length to maturity of any direct investment in the Federal Instruments is five (5) years from date of purchase. E. Interest Beadng Time Deposit or Saving Accounts The CRA Staff may invest in non-negotiable interest beadng time certificates of deposit or savings accounts in banks organized under the laws of this state and / or in national banks organized under the laws of the United States and doing business and situated in the State of Flodda, provided that any such deposits are secured by the Flodda Secudty for the Public deposits Act, Chapter 280, Flodda Statues. Additionally, the bank shall not be listed with any recognized credit watch information service. Investment in time deposits or savings accounts shall be but are not limited to the,following? at a maximum of 100 % of available funds. The maximum length to maturity of Interest Bearing Time Deposit is five (5) years from date of purchase. iDeleted: for investing in Federal Instrumentalities C. omlll~lt: Staff is suggesting deletu~g t ~e fo owing at f Formatted: Highlight 1610-E F. Commercial Paper (Short Term Paper- Corporation) The CRA Staff may invest in commercial paper of any United States company that is rated, at the time o[ purchase, "Prime-l" by Moody's and/or? "A-l" by Standard & Poor's (Pdme commercial paper). If the commercial paper is backed by a letter of credit (LOC), the long-term debt of the LOC provider must be rated "A" or better by at least two nationally recognized rating agencies. The maximum of 15% of excess available funds may be directly invested in pdme commercial paper with a maximum of 10% of available funds with any one issuer. The maximum length to maturity for pdme commercial paper shall be 180 days from the date of purchase. G. Bankers' Acceptances (Short Term Paper - Banks) The CRA Staff may invest in Bankers' Acceptances issued by a domestic bank or a federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System. At the time of purchase, the short- term paper must be ,rated, at a minimum, "P-1" by Moody's Investors Services and/o.__r ~A-2" by Standard & Poor's. The maximum of 15% of available funds may be directly invested in Bankers' Acceptances with a maximum of 10% of excess available funds with any one issuer. The maximum length to maturity for Bankers' Acceptance shall be 180 days from the date of purchase. H. State and / or Local Government Taxable Debt The CRA Staff may invest in State and / or Local Government Taxable general obligation and / or revenue bonds rated at least ~Aa~ by Moody's and/o__[r ",~J~" by Standard & Poor's for short-term debt. The maximum of 15% of excess available funds may be directly invested in State and / or Local Government Taxable. The maximum length to maturity for the State and / or Local Government debt security is three (3) years form the date of purchase. Deleted: r Deleted: is 1610-F I. Registered Investment Companies (Mutual Funds) The CRA Staff may invest in shares o[ open-end and no-load money market funds provided such funds are registered under the Federal Investment Company Act of 1940 and operated in accordance with 17 C.F.R. 270 2a-7, which stipulates that money market funds must have an average weighted maturity of 90 days or less. In addition, the share value of the money market funds must be equal to $1.00. The maximum of 100% of excess available funds may be invested in money market funds. The maximum of 75% of available funds may be invested with any one money market fund. The mutual funds shall be rated "AAm' or "AAm-G' or better by Standard & Poor's or the equivalent by another rating agency. A thorough review of any investment mutual fund by staff is required pdor to investing, and on a continual basis and a prospectus must be provided, to the CRA Staff and retained on premises for investment records. J. Repurchase Agreements The CRA Staff may invest in Repurchase Agreements composed of only those investments based on the requirements set forth by the CRA Master Repurchase Agreement. All firms are required to sign the Master Repurchase Agreement prior to the execution of a repurchase agreement transaction. (See Attachment II) A third party custodian that has a current Master Repurchase Agreement shall hold the collateral for all repurchase agreements with a term no longer than one business day. A clearly marked receipt that shows evidence of ownership must be supplied to the CRA Staff and retained on premise for investment records. Securities authorized for collateral are negotiable direct obligations of the United States Government, Government agencies, and Federal Instrumentalities with Maturities under five (5) years and must have a market value for the principal and accrued interest of 100 percent of the value and for the term of the repurchase agreement. "~-'o*"'~o' o~'-'* *,-,~, ,~,,,,~,*~,-,,~ ~--,-,, ') ...... * r.~u!reme.-.t aro A maximum of 50% of excess available funds may be invested in repurchase agreements including one O)_,business day agreements and overnight sweep agreements. A maximum of 25% of available funds may be invested with any one institution. The maximum length to maturity of any repurchase agreement is 60 days form the date of purchase. Deleted: in ~ Deleted:, Deleted: .¶ 1610- G Maturity and Liquidity Requirements To the extent possible, all attempts will be made to match investment maturities with known CRA fund needs and anticipated fund flow requirement. Investment of current budgeted needs ~ shall be maintained in an operating account and/or a liquid investment ~' ..... *','~'-" account:_. .... Investment of bond reserves, construction funds, and other non-operating funds ,shall have a term appropriate to the need for funds and in accordance with debt covenants, but in no event shall exceed five (5) years. Portfolio Composition The investment portfolio shall be assembled to meet the liquidity needs for the CRA through a balance of short-term and medium-term maturities. In addition, the investment portfolio shall be diversified with respect to investment instruments and issuers. A listing of authorized investment instruments includes portfolio composition, dsk and diversification. Risk and Diversification The investment portfolio shall be assembled to meet the liquidity needs for the CRA through a balance of short-term and medium-term maturities. In order to reduce the dsk of loss from over-concentration of assets in a specific maturity, issuer, instrument, dealer or bank, the investment portfolio shall be managed to minimize the potential risk from default and changes in market conditions through diversification specified in the listing of ~uthodzad .Investment ~struments section. Authorized Investment Institutions and Dealers The ,CRA Controller =t-,?,ff and Investment Advisors, after CRA Board approval. shall only purchase securities from financial institutions,which are qualified as public depositories by the Treasurer of the State of Florida, institutions designated as "Pdman/Securities Dealers" by the Federal Reserve Bank of New York, or fro~direct issuers of commercial paper and bankers' acceptances. Investments in savings accounts, certificates of deposit or other deposit accounts in a bank or savings association, may be made only in qualified public depositories as defined by Flodda State StatUtes section 280.02. All aUthorized institutions and dealers conducting business with the CRA shall be given a copy of the CRA's Investment Policy and be required to abide by. same. Deleted: (core funds) Delel~d: a Deleted: i Delel~qi: i Deleted: Authorized Deleted: after CRA Board approval, Deleted: r I Deleted: s 1610- H ,The broker shall execute a certification acknowledging receipt of the Investment Policy and agreeing to follow ils terms and conditions. Third-Party Custodial agreements All securities purchased by the CRA, with the exception of certificates of deposits, shall be properly designated as an asset of the CRA and held in safekeeping by a third party custodial bank or other third party custodial institution chartered by the United States Government or any other state or territory of the United States which has a branch or principal place of business in the State of Florida as defined in Section 658.12, Florida statues, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is authorized to do business in the State of Flodda. Master Repurchase A.qreement The investment portfolio policy shall require all approved institutions and dealers transacting repurchase agreements to execute and perform as stated in the master repurchase agreement. (See Attachment II for an example) Competitive Biddinfl A minimum of throe qualified banks or approved broker/dealers will be contacted to supply bids for required services. In all cases where competitive bidding is not feasible, the apprcpdateness and return of the investment shall be comparod to other investments with similar maturities available in the financial markets as well as ,a comparison to current market pdce (method~ to determine the feasibility of the investment. Competitive bids will not be required when the secudty involved is a new issue and can be purchased at auction or at a present, initial offedng pdce or if the secudty is available only through a single dealer. Overnight sweep ropurchase agreements will not be bid, but may be placed with the CRA's depository bank relating to the demand account for which the repurchase agreement was purchased. Internal Controls The CRA staff shall establish a system of internal controls and operational procedures that are in writing to protect the CRA's assets and ensuro proper accounting and roporting of the transactions rolated thereto. The internal controls are designed to prevent loss of funds, which might arise from fraud, employee error, and misrepresentation by third parties imprudent actions by employees. The written procedures should include referonces to safekeeping, repurchase { Deleted: the Investment Policy. Deleted: .1 Deleted: and also 1610-I agreements, separation of transaction authority from accounting and record keeping, wire transfer agreements, banking service contracts and collateral / depository agreements. No person may engage in an investment transaction except as authorized under the terms of this policy. Independent auditors as a normal part of the annual financial audit to the CRA Board shall conduct a review of the system of internal controls to ensure compliance with policies and procedures. ContinuinR Education The,CRA Controller Staff shall annually complete 8 hours of continuing education in subjects or courses of study related to investment practices and products. Reportin.q The CRA Controller St=ff shall provide for the CRA Board a quarterly investment report. The report shall include the following: A listing of individual securities held at the end of the reporting period Percentage of available funds represented by each investment type Coupon, discount or earning rate Average life or duration and final maturity of all investments Par value, and market value The CRA Staff shall prepare and submit to the CRA board a written report on all invested funds. The annual report shall provide all, but not limited to the following: a complete list of all invested funds, name or type of security in which the funds are invested, the amount invested, the maturity date, earned income, the book value, the market value and the yield on each investment. All investments shall be reported at fair value per GASB standards. Investment portfolio reports shall be available to the public. Derivatives and Reverse Repurchase A.qreements Investments in any derivative products or the use of reverse repurchase agreements are specifically prohibited by this investment [portfolio) policy. A ~derivative" is defined as a financial instrument the value of which depends on, or is derived from the value of one or more underlying assets or indices or asset values. Responsibility The establishment of the investment (portfolio)_ policy is the responsibility of the CRA Staff and CRA Board. The CRA staff, under the direction of the CRA Board t De~e~ed: appropriate ~ 10 1610-J shall be responsible for implementing the policy and managing the CRA investment portfolio within these guidelines. Cash Mana.qement The CRA Staff, except where otherwise provided by the CRA Board or State law, is authorized to pool the cash of vadous funds to maximize investment earnings where it is advantageous and prudent to do so. Investment income will be allocated to the various expenses and projects based upon need. APROVED AND ADOPTED BY THE CRA BOARD Of BOYNTON BEACH ON __ day of 2003 Chairman of the Board Vice-Chairperson of the Board Executive Director 11 1610-K RESOLUTION NO 03-01 A RESOLUTION OF THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE CONTROLLER IN ACCORDANCE WITH POLICY TO INVEST EXCESS FUNDS IN THE STATE BOARD OF ADMINISTRATION INVESTMENT POOL, PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, The Community Redevelopment Agency of the City of Boynton Beach from time to time has funds on hand in excess of current needs; and WHEREAS, it is in the best interest of the Community Redevelopment Agency of the City of Boynton Beach and its inhabitants that funds be invested to return the highest yield consistent with proper safeguards; NOW THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. That the Controller or desiqnee, as legal representative of the Community Redevelopment Agency of the City of Boynton Beach, is hereby authorized to act as the administrator (s) for funds held at the State Board of Administration. Administrator (s) shall have the authority to establish an account(s) on behalf of The Community Redevelopment Agency of the City of Boynton Beach, withdraw funds from or transmit funds to said account(s) at the State Board of Administration, establish funds transfer instruction, name designee(s), and initiate changes to this information via the Investment Pool Input Document. 3. That this authorization shall be continuing in nature until revoked by the Community Redevelopment Agency of the City of Boynton Beach. THIS RESOLUTION INTRODUCED and ADOPTED by the Community Redevelopment Agency Board at its regular meeting on 16[0- L SEAL By: Chairperson Vice-Chairperson Attest: Director 1610-M DEPARTMENT OF DEVELOPMENT Memorandum DD 03-013 TO: FROM: DATE: RE: CRA Board ~,,,, Quintus L. Greene, Development Directo~ 5/7/03 Transmission of the Ocean District Community Redevelopment Plan We are pleased to submit the Ocean District Redevelopment Plan for your review and approval. This plan follows the Federal Highway Corridor Community Redevelopment Plan and the Heart of Boynton Community Redevelopment Plan to become the third component of the Community Redevelopment Area Plan update. We are requesting that the Board recommend the plan to be adopted by the City CommiSsion. 1609 VIII. Old Business: Any person who decides to appeal any decision of the Community Redevelopment Board with respect to any matter considered at this meeting wifl need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. 1608 The CRA shall furnish appropriate auxil/ary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits of a service, program, or activity conducted by the CRA. Please contact Douglas Hutchln~on at 561-737-3256 at least twenty-four hours prior to the program or activity in order for the CRA to reasonably accommodate your request. VII. Director's Report: Any person who decides to appeal any decision of the Community Redevelopment Board with respect to any matter considered at this meeting will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. 1601 The CRA shall furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits ora se~-ice, program, or activity conducted by the CRA. Please contact Douglas Hutchinson at 561-737-3256 at least twenty-four hours prior to the program or activity in order for the CRA to reasonably accommodate your request. 5/2/2003 2:12 PM MEMO To: CRA Board From: Douglas Hutchinson Date: 5/2/03 Subject: CRA Activities The CRA works on multiple tasks as a matter of daily business. Priority items get attention first, but when these reach a waiting period in their process for various reasons, other items are worked on until the priority item can be once again moved forwarded. Activities that the staff is engaged in are defined below. This is a Priority Grouping Listing to show a logistical working task list, which means that new priority items start as items for development then move to implementation. As time goes on some lesser Group items move up for dead lines; i.e., the Budget Work. Activity Definitions: On-Going Items are Continuing Agency Activities, Projects and Programs. Development Items are Projects and Programs in progress or being developed for further consideration or work, with a defined conclusion, end product or termination date. 1602 On-Going Items: Developer Inquiries and Coordination -Work with potential developers, real estate agents/brokers and landowners to disseminate related information on CRA plans and opportunities. Agency Operations - This encompasses internal work such as accounting, insurances, contract administration, City coordination of overlapping issues (zoning, development planning, etc.), and external networking, building alliances, macro CRA issues. Community interfacing with individuals, groups and entities. Grant requests, review and administration (Facade Grant and Direct Incentive Program). Events coordination, HR issues, Grant Source Tracking/Application, Revision and Up-Dating of Operational Manuals of various types, Board meeting preparations, etc. Development Items: Group A Boynton Beach Blvd/Promanade/Riverwalk Design / Build RFQ - Contract negotiations and final contract options have been developed with Legal Staff at this time. May 13th target. Way-Finding Signage Program - Next work review meeting will be on sign placement, phasing, type locations and content. The City will be brought into the project for their needs, input and discussion of a possible City "Piggy Back" contract for their items beyond the CRA project. Bob Trescott from Guidance Pathways system has conducted a walk of the area through. Presentation and meeting targeted for June 2003. Ocean District Redevelopment Plan Update - City Planning Department is drafting the plan study. Presentation to the CRA for review and comment scheduled for May 13th. MLK Property Acquisition Phase I - Staff has begun meetings with the area property owners about redevelopment. Developers and owners are being assembled for creation of development strategies to begin projects. Target June for public announcements. CBD Parking Acquisitions - Negotiations have been underway to acquire future public parking spaces. Project scope includes several existing owners in the targeted Block. Comprehensive Redevelopment Master Plan for the Block is being completed by 1603 the private sector. Target June or July for "letter of understanding" between the various parties. Contract for Real Estate Services - Individual Work Tasks are being defined by Staff and TUG. Focus will be on the first priority properties, three key properties for acquisition and/or condemnation as identified by the City Planning Department. Work task approval in June. · RFQ for Boynton Beach Blvd District Redevelopment Plan Up- date - This is proposed to be part of the RMPK contract which would also cover Design Guidelines. Target June meeting. · Design Guideline Overlay - Staff held an initial meeting with RMPK Group who is currently under contract to re-write the City's LDR. RMPK Group was asked to present a concept scope of work for Design Guidelines for the CRA area. They were very positive about having the work so that it fits into the City's LDR. We will seek legal direction after the scope is determined as to the possible "Piggy Back" or change order to the current City contract for the new CRA work. Target June meeting for consideration. Financial Investment Strategies - Developing a financial investment strategies including best investment instruments, enabling documents and CRA operating cash-flow requirements. Completed, in legal review. Will be on the May 2003 meeting agenda for consideration and approval. SV Human Resources Manual - Lori Barefoot of HRMP sent a copy of the updated HR Manual for the CRA Board's review. The Survey for the Salaries, Positions, Job Descriptions, Pension Plans and other items the Board had requested will be completed on the 24th of April and the results sent to the CRA in May. The HR manual and survey results will be on the May 2003 meeting agenda for consideration and approval. SV RFQ for Outside Audit - The RFQ was given to CRA Board members at the April 17th meeting for their review and comments. This item will be on the May 13th Agenda for approval. SV · Museum Feasibility Study - Savage Creatures of Ancient Seas Museum staff feasibility study has been completed. CRA Board has give direction to prepare a RFQ for Feasibility, Design Construction Analysis. RFQ will be reviewed in May. 1604 CRA Revenue Forecasting - Develop in-house forecasting program to better estimate CRA revenue streams. Target information on Forecasting should be to the CRA Board in June. SV · CRA Budgets - Developing 2003/2004 CRA Budget and forecasting a five (5) year budget model. Will get TIF projections for 2003 from Palm Beach Tax Collectors Office in June. Target five year budgets should be to the CRA Board for review and comment by Mid June. SV CRA Brochure and Web Site Development - A letter for seeking graphic designer and web services has been drafted. The letter is in distribution at this time. If the project costs exceed $10,000, the CRA will have to go through the traditional public bid process. Target information back to the Board in June. Events - The overall event strategy is being formally formatted for each event with goals, projections and time schedules. Alliances, Resources and sponsors are been developed. Targeted for July. Group B High School Adaptive Re-Use Task Force - The RFP for Environmental and Structural analysis have been completed and approved for advertising. The due date is June 27th, 2003. · Land Development Regulation (LDR) - LDR re-write by the City of Boynton Beach over the next several months. CRA asked to submit concerns, ideas, etc. Staff is interfacing on re-write language and reviewing the first draft concept. Affordable Spaces Incentive - Program to reward projects for inclusion of below market Retail, Commercial and Residential spaces. Developing incentives and possible criteria guidelines for program. · Heart of Boynton District Development Book - Developing a book of HOB Projects with information on Location, Owner Information, Type of Project, Project Elements and Color Renderings. June. Federal Highway Corridor Development Book - Developing a book of HOB Projects with information on Location, Owner Information, Type of Project, Project Elements and Color Renderings. July. 1605 Board Member Qualifications - Staff has begun drafting experience of existing Board members and polling other entities for their qualification criteria. Group C · GISMO Mapping System - Bdnging in-house the mapping system for developer support and develop a "scaled" map book. Completed April 2003. Additional features are under development at this time Infrastructure Size and Availability - Working with the City of Boynton Beach on project planning to assess the growth impact on utilities in the CRA area. Awards Program - Staff has scheduled meetings to collect existing program materials to use as a starting point for the CRA program. · CRA Loan Program · Possible Office Options 1606 Community Redevelopment Agency Investment Policy Manual Scope This ,Investment ~olicy Manual applies to all financial assets held or controlled by the Community Redevelopment Agency in excess of those required to meet the current budgeted needs ~ other than funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds. Definitions Current Budgeted Needs shall mean, funds budgeted for the current quarter,, Current Quarter shall mean either October-December, January-March, April- June, .or July-August. Excess available funds shall mean all funds other than current budgeted needs~ Liquid Investment Account shall mean an account in which funds can be moved immediately to another account. Maximum length to maturity shall mean ,the maturity ,as defined in the specific instrument's investment,policy. Maximum amount of excess available funds that can be invested within a specific investment instrument shall be given as a percentage. Primary liquidity shall mean the funds budgeted for current quarter needs, which are to be retained in an operating account and/o__r a liquid investment account. Investment Objectives The following investment objectives will be applied in the management of the CRA's funds. A. Safety 1. Preservation of Capital The pdmary objective of,C~ investment ,activities is to Preserve capital. and protect the principal invested b¥,reduc~ credit ~and interest rate risk., Delebad: irrvest ment Deleted: policy I Deleted: s (Deleted: needs Deleted: and Com~- ,XcM tt~-m or rework Don ~ Fenton ~ for th~ curren~ quade~  : that will be available for nvestment ~4: that ~d: can not exce~ the number of years Fo~: Unde~e fDeleted:the f Deleted: activities IDek.,~ed: in the overall Investment Portfolio. The objectrve wilt be to Deleted: e fDeleted: risk ^n indi~i~i~ol ~rifin~ ~holl nnf nw-nnel fhn in~-nrnn nnnnrof~el frnrn fhn 2. Credit Risk The CRA will maintain the Investment Portfolio, in such a manner that funds are available to meet current budgeted needs, but will minimize credit risk by: · Limiting investment to the safest types of securities. · Pre-Qualifying the financial institution, broker,/,dealers,_,and advisers with which the CRA does business. · Diversifying the Investment Portfolio so that potential losses will be minimized. B. Interest Rate Risk - The CRA will minimize the risk that the market value of investments in the Investment Portfolio will fall due to changes in general interest rates by: · Structuring the Investment Portfolio so that securities mature to meet cash requirements for current budgeted needs, thereby avoiding the need to sell securities on the open market prior to maturity· · _.MaintainincLcurrent budgeted needs ir~an operating account* and / or a liquid investment account such as a Money Market Account.. 'C. Liquidity - Periodically a flow analys~ will be completed in order to ensure that the Investment Portfolio is positioned to provide sufficient liquidity for ,budgeted needs, 'D· Yield - The CRA shall diversify its Investment Portfolio to maximize the return on the Investments while attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment dsk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. ~ (Comment: Staff is r¢conunending dfis 1 be taken out [CoRmt~R= V~3fich shall be defined as all secm~ties above m~ "AA" rating by Standmd mid Poor or "Aa" by Moody's blvestor Selvices - DOll Fenton ] ' Inserted: (Mainta~ningg) 'Formatted: Indent: Left: 1.75', Bulleted + Level: 2 + Aligned at: 1' + Tab after: 1.25' + Indent at: 1.25', Tabs: 2', List tab + Not at 1.25" - Deleted: ?) Investing Dek~ed: to ' Deleted: (not an investmenV~)¶ ' Iu~erted: (not an investment~,) ' Fonttatted: Font color: Auto Formatb~: Indent: Le~t: O.5" · Deleted: e · Deleted: current ~Deleted: .(funds necessary for current budgeted needs are not to be used for investing, see scope~ Inserted: (funds necessa~ for current budgeted needs are not to be used for investing, see scope) Fon~atted: Font color: Auto, Strikethrough · Formatted: Indent: Left: 0.5" Formatted: Striknthreugh ~ Commellt: Deleted by Don Fenton Investment Performance and Reportin.q In order to assist in the evaluation of the investment portfolio's performance, the CRA staff will use the performance benchmarks for short-term portfolios. The use of benchmarks will allow the Staff to measure ils returns against other investors in the same markets. The State Board of Administration's Local Government Surplus Funds Trust Fund (SBA Pool) will be used as the benchmark to compare our !o the investment portfolios' yield. '-"~ h,.,,~, ,,.,[ ..... *,, ,,f .~* .... f ......... * .... ~,~ Prudence and Ethical Standards The standards of prudence to be used by the CRA Staff shall be the "Prudent Person" ~Rule . ~..-~, ~.. ~.~ ~.. .................... ~..~...~ ........... in~snefmf~n+ nhlih'*, rJn~l ' ' ,.Mb *~,,~ * .... ' "~:~' """"" The ~Prudent person' rule states the following. "Investments shall be made wi~ judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived form the investment."_ Employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment portfolios' program, or which could impair their ability to make impartial investment decisions. Employee will follow the State Code of Ethics located at Chapter 112 of the Flodda Statues. (Commeltt: Rule ! FoW: Strikethrough CoW: { Fenlon. Str~kethrough by Don I Listin.q of Authorized Investments -(Investment Guide Attachment I) A. (SBA) The Flbdda Local Government Surplus Trust Funds The CRA Staff may purchase / sell investment securities at prevailing market rates and in__appropdate amoun~ thereof in_,The Florida Local Government Surplus Funds Trust Fund (SBA) at a maximum of 100% of excess available funds. (SBA) The maximum length to maturity of any direct investment in the (SBA) is rwe (5) years from date of investment, B. United States Government Securities The CRA Staff may invest in direct Securities or Securities in which the principal and interest are unconditionally guaranteed by the United States Government ,including, but not limited to the following at a maximum of 100 % of excess available funds: Deleted: Securities Cash Management Bills Treasury Securities - State and Local Government Series (SGLS) Treasury Bills Treasury Notes Treasury Bonds Treasury Strips The maximum length to maturity of any direct investment in ,United States Government Securities is five (5) years from date of purchase. DeJel~d: the C. United States Government Agencies The CRA Staff may invest in bonds, debentures, notes or callable securities issued or guaranteed by ,United States Government _~gencies, provided such IDeSeted:the obligations are backed by the full faith and credit of the United States Deleted:a Government. Such securities will include, but not be limited to the following with a maximum investment of 50% of excess available funds.and n__9o mor~ tha~ 10% in OeJe~ed: for investing any individual issue: United Stated Export - Import Bank with direct obligation or fully guaranteed certificates of beneficial ownership Farmer Home Administration certificates of beneficial ownership Federal Housing Administration debentures General Serviced Administration United States Maritime Administration Guaranteed -Title ×1 Financing New Communities Debentures that the United States Government Guarantees Debentures United States Public Housing Notes and Bonds that are guaranteed by the United States Government United States Department of Housing and Urban Development Project notes and local authority bonds The maximum length to maturity of any direct investment in the United States Government Agencies is five (5) years from date of purchase. D. Federal Instrumentalities (United States Government sponsored agencies) The CRA Staff may invest in bonds, debentures, notes or callable securities issued or guaranteed by United States Govemment sponsored agencies (Federal Instrumentalities) which are non-full faith and credit agencies limited to the following with a maximum of 50% of excess available funds ,and no more than 10% in any individual Instrumentalities: Tennessee Valley Authority Federal Farm Credit Bank (FFCB) Federal Home Loan Bank or its Board Banks (FHLB) Federal National Mortgage Association (FNMA) Federal Home Loan Mortgage Corporation (Freddie-Macs) Including J=ederal Home Loan Mortgage Corporation participation certificates Federal student loan Marketing Association (Sallie-Mae) The maximum length to maturity of any direct investment in ,any Federal Instrumentalities is five (5) years from date of purchase. E. Interest Beadng Time Deposit or Saving Accounts The CRA Staff may invest in non-negotiable interest beadng time certificates of deposit or savings accounts in banks organized under the laws of this state and / or in national banks organized under the laws of the United States and doing business and situated in the State of Flodda, provided that any such deposits are secured by the Flodda Security for the Public deposits Act, Chapter 280, Florida Statues. Additionally, the bank shall not be listed with any recognized credit watch information service. Investment in time deposits or savings accounts may be at,100 % of available funds. The maximum length to maturity of Interest Beating Time Deposit is five (5) years from date of purchase. Deleted: for investing in Federal Instrumentalities Deleted: the Col~#l~a~t: Staff is suggestm~ deleting, the following al j Deleted: shall be but are not limited to the following? at a maxim um of IFormatted: Highlight / Ice.ted: ? _~ F. Commercial Paper (Short Term Paper- Corporation) The CRA Staff may invest in commercial paper of any United States company that is rated, at the time o~, purchase, "Pdme-l~ by Moody's and/or? "A-1' by Standard & Poor's (Pdme commercial paper). If the commercial paper is backed by a letter of credit (LOC), the long-term debt of the LOC provider must be rated ~A" or better by at least two nationally recognized rating agencies. The maximum of 15% of excess available funds may be directly invested in pdme commercial paper with a maximum of 10% of available funds with any one issuer. The maximum length to maturity for pdme commercial paper shall be 180 days from the date of purchase. G. Bankers' Acceptances (Short Term Paper - Banks) The CRA Staff may invest in Bankers' Acceptances issued by a domestic bank or a federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System. At the time of purchase, the short- term paper must be ,rated, at a minimum, "P-I' by Moody's Investors Services and/o__r ~A-2" by Standard & Poor's. The maximum of 15% of available funds may be directly invested in Bankers' Acceptances with a maximum of 10% of excess available funds with any one issuer. The maximum length to maturity for Bankers' Acceptance shall be 180 days from the date of purchase. H. State and / or Local Government Taxable Debt The CRA Staff may invest in State and / or Local Govemment Taxable general obligation and / or revenue bonds rated at least "Aa" by Moody's and/o__[r "AA' by Standard & Poor's for short-term debt. The maximum of 15% of excess available funds may be directly invested in State and / or Local Government Taxable. The maximum length to maturity for the State and / or Local Government debt security is three (3) years form the date of purchase. Delete4: is Registered Investment Companies (Mutual Funds) The CRA Staff may invest in shares 9_[ 0Pemend and no-load ~nutual funds provided such funds are registered under the Federal Investment Company Act of 1940 and operated in accordance with 17 C.F.R. 270 2a-7, which stipulates that money market funds must have an average weighted maturity of 90 days or less. In addition, the share value of the money market funds must be equal to o__[r .qreater than $1.00. The maximum of 100% of excess available funds may be invested in money market funds. The maximum of 75% of available funds may be invested with any one ~nutual, fund. The mutual funds shall be rated "AAm" or "AAm-G" or better by Standard & Poor's or the equivalent by another rating agency. A thorough review of any investment mutual fund by staff is required pdor to investing, and on a continual basis and a prospectus must be provided to the CRA Staff and retained on premises for investment records. J. Repurchase Agreements The CRA Staff may invest in Repurchase Agreements composed of only those investments based on the requirements set forth by the CRA Master Repurchase Agreement. All firms are required to sign the Master Repurchase A~lreement pdor to the execution of a repurchase agreement transaction. (See Attachment II) A third party custodian that has a current Master Repurchase Agreement shall hold the collateral for all repurchase agreements with a term no longer than one business day. A clearly marked receipt that shows evidence of ownership must be supplied to the CRA Staff and retained on premise for investment records. Securities authorized for collateral are negotiable direct obligations of the United States Government, Government agencies, and Federal Instrumentalities with Maturities under five (5) years and must have a market value for the principal and accrued interest of 100 percent of the value and for the term of the repurchase agreement. A maximum of 50% of excess available funds may be invested in repurchase agreements including one (1)_,business day agreements and overnight sweep agreements. A maximum of 25% of available funds may be invested with any one institution. The maximum length to maturity of any repurchase agreement is 60 days ,from the date of purchase. fDeleted: in IDeleted: money markc~ i Deleted: money Deleted: market Deleted: form Maturity and Liquid~ Requirements To the extent possible, all attempts will be made to match investment maturities with known CRA fund needs and anticipated fund flow requirement. Investment of current budgeted needs efMl~fieJ~fl~ shall be maintained in an operating account and/or a liquid investment ~, .... account:_,,..... -"'-*' ,"~"'--' Investment of bond reserves, construction funds, and other non-operating funds ,shall have a term appropriate to the need for funds and in accordance with debt covenants, but in no event shall exceed five (5) years. Portfolio Composition The investment portfolio shall be assembled to meet the liquidity needs for the CRA through a balance of short-term and medium-term maturities. In addition, the investment portfolio shall be diversified with respect to investment instruments and issuers. A listing of authorized investment instruments includes portfolio composition, risk and diversification. Risk and Diversification The investment portfolio shall be assembled to meet the liquidity needs for the CRA through a balance of short-term and medium-term maturities. In order to reduce the dsk of loss from over-concentration of assets in a specific maturity, issuer, instrument, dealer or bank, the investment portfolio shall be managed to minimize the potential dsk from default and changes in market conditions through diversification specified in the,section entitled ~,uthodzed Investment Jpstruments section. Authorized Investment Institutions and Dealers The ,CRA Controller :t:ff and Investment Advisors, after CRA Board approval, shall only purchase securities from financial institUtions,which are qualified as public depositories by the Treasurer of the State of Florida, institutions designated as "Pdmary Securities Dealers" by the Federal Reserve Bank of New York, or f_ro_n3, direct issuers of commercial paper and bankers' acceptances. Investments in savings accounts, certificates of deposit or other deposit accounts in a bank or savings association, may be made only in qualified public depositories as defined by Flodda State Statutes section 280.02. All authorized institutions and dealers conducting business with the CRA shall be given a copy of the CRA's Investment Policy and be required to abide by. same. Deleted: (co~e funds) Deleted: listing of Deleted: a I~leted: i Deleted: i Deleted: Authorized after CRA Board approval, fDeleted: r j ,The broker shall execute a certification acknowledging receipt of the Investment Policy and agreeing to follow its terms and conditions. Third-Party Custodial agreements All securities purchased by the CRA, with the exception of certificates of deposits, shall be properly designated as an asset of the CRA and held in safekeeping by a third party custodial bank or other third party custodial institution chartered by the United States Government or any other state or territory of the United States which has a branch or principal place of business in the State of Flodda as defined in Section 658.12, Flodda statues, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is authorized to do business in the State of Flodda. Master Repurchase ~qreement The investment portfolio policy shall require all approved institutions and dealers transacting repurchase agreements to execute and perform as stated in the master repurchase agreement. (See Attachment II for an example) Competitive Bidding A minimum of three qualified banks or approved broker/dealers will be contacted to supply bids for required sen/ices. In all cases where competitive bidding is not feasible, the appropriateness and return of the investment shall be compared to other investments with similar maturities,compare__d, to current market price~,Compefitive bids wi!! not be required when the security involved is a new issue and can be purchased at auction or at ,the initial offedng prlce~ However, initial offering purchases must conform to the guidelines set for[h in the Investment Policy Manual., Overnight sweep repurchase agreements will not be bid, but may be placed with the CRA's depository bank relating to the demand account for which the repurchase agreement was purchased. IntemalControls The CRA staff shall establish a system of internal controls and operational procedures that are in writing to protect the CRA's assets and ensure proper accounting and reporting of the transactions related thereto. The internal controls are designed to prevent loss of funds, which might adse from fraud, employee error, and misrepresentation by third parties imprudent actions by employees. The written procedures should include references to safekeeping, repurchase agreements, separation of transaction authority from accounting and record t Deleted: the Investment Policy. Deleted: available in the financial markets as well as Ia~rted: as well as } Deleted: and also Deleted: (method)? to determine the ~ feasibility of the investment, Deleted: ison Inserted: Inserte~: )? } · Deleted: a present, Deleted: or if the security is available only through a single dealer.q] keeping, wire transfer agreements, banking service contracts and collateral / depository agreements. No person may engage in an investment transaction except as authorized under the terms of this policy. Independent auditors as a normal part of the annual financial audit to the CRA Board shall conduct a review of the system of internal controls to ensure compliance with policies and procedures. ContinuinR Education The,CRA Cont[011er ~=ff shall annually complete 8 hours of continuing education in subjects or courses of study related to investment practices and products. ReDortina The CRA Controller St=ff shall provide ~t_g._the CRA Board a quarterly investment report. The report shall include the following: A listing of individual securities held at the end of the reporting peded Percentage of available funds represented by each investment type Coupon, discount or earning rate Average life or duration and final maturity of all investments Par value, and market value The CRA ,Controller shall prepare and submit to the CRA board a written report on all invested funds. The annual report shall provide all, but will not be limited to the following: a complete list of all invested funds, name or type of security in which the funds are invested, the amount invested, the maturity date, earned income, the book value, the market value and the yield on each investment. All investments shall be reported at fair value per GASB standards. Investment portfolio reports shall be available to the public. Derivatives and Reverse Repurchase A.qreements Investments in any derivative products or the use of reverse repurchase agreements are specifically prohibited by this Jnvestment ~Policy` Manual. A "derivative" is defined as a financial instrument the value of which depends on, or is dedved from the value of one or more underlying assets or indices or asset values. Responsibility The establishment of the Jnvestment,Policy, Manual is the responsibility of the CRA Staff and CRA Board. The CRA staff, under the direction of the CRA Board shall be responsible for implementing the policy and managing the CRA investment portfolio within these guidelines. Deleted: appropriate Deleted: for I Delete~: investment Deleted: (portfolio) p Inserted: ( fInserted: ) _~ Deleted: investment fDeleted: (portfolio) p } IInsured: ( ) Inserted: ]o Cash Mana~lement The CRA Staff, except where otherwise provided by the CRA Board or State law, is authorized to pool the cash of vadous funds to maximize investment earnings where it is advantageous and prudent to do so. Investment income will be allocated to the various expenses and projects based upon need. APROVED AND ADOPTED BY THE CRA BOARD OF BOYNTON BEACH ON __ day of 2003 Chairman of the Board Vice -Chairperson of the Board Executive Director 1! City of Boynton Beach Community Redevelopment Agency Investment Policy Manual Scope This Investment Policy Manual applies to all financial assets held or controlled by the City of Boynton Beach Community Redevelopment Agency (CRA) in excess of those required to meet the current budgeted needs other than funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds. Definitions Current Budgeted Needs shall mean funds budgeted for the current quarter. Current Quarter shall mean either October-December, January-March, April-June or July-August. Excess available funds shall mean all funds other than current budgeted needs. Liquid Investment Account shall mean an account in which funds can be moved immediately to another account. Maximum length to maturity shall mean the maturity as defined in the specific instrument's investment policy. Maximum amount of excess available funds that can be invested within a specific investment instrument shall be given as a percentage. Primary liquidity shall mean the funds budgeted for current quarter needs, which are to be retained in an operating account and / or a liquid investment account such as a Money Market Account. Investment Obiectives The following investment objectives will be applied in the management of the CRA's funds. A. Safety 1. Preservation of Capital The primary objective of the CRA investment activities is to preserve capital and protect the principal invested by reducing credit and interest rate risk. 2. Credit Risk The CRA will maintain the Investment Portfolios in such a manner that funds are available to meet current budgeted needs, but will minimize credit risk by: · Limiting Investment to the safest types of securities which shall be defined as all securities above an "AA" rating by Standard and Poor or "Aa" by Moody's Investor services. · Pre-Qualifying the financial institution, broker / dealers and advisers with which the CRA does business. · Diversifying the Investment Portfolio so that potential losses will be minimized. B. Interest Rate Risk - The CRA will minimize the risk that the market value of investments in the Investment Portfolio will fall due to changes in general interest rates by: · Structuring the Investment Portfolio so that securities mature to meet cash requirements for current budgeted needs, thereby avoiding the need to sell securities on the open market prior to maturity. · Maintaining current budgeted needs in an operating account and / or a liquid investment account such as a Money Market Account. C. Liquidity - Periodically a flow analyses will be completed in order to ensure that the Investment Portfolio is positioned to provide sufficient liquidity for current budgeted needs. D. Yield - The CRA shall diversify its Investment Portfolio to maximize the return on the Investments while attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. Investment Performance and Reportin.q In order to assist in the evaluation of the investment portfolio's performance, the CRA Controller will use the performance benchmarks for short-term portfolios. The use of benchmarks will allow the CRA Controller to measure its returns against other investors in the same markets. The State Board of Administration's Local Government Surplus Funds Trust Fund (SBA) will be used as the benchmark to compare our investment portfolios' yield. Prudence and Ethical Standards The standards of prudence to be used by the CRA Controller shall be the "Prudent Person" Rule. The "Prudent person" rule states the following. Investments shall be made with judgment and care, under circumstances - then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived form the investment. Employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment portfolios' program, or which could impair their ability to make impartial investment decisions. Employee will follow the State Code of Ethics located at Chapter 112 of the Florida Statues. Listinq of Authorized Investments -(Investment Guide Attachment I) A. (SBA) The Florida Local Government Surplus Trust Funds The CRA Controller may purchase / sell investment securities at prevailing market rates and in appropriate amounts thereof in The Florida Local Government Surplus Funds Trust Fund (SBA) at a maximum of 100% of excess available funds. The maximum length to maturity of any direct investment in the (SBA) is five (5) years from date of investment. B. United States Government Securities The CRA Controller may invest in direct Securities or Securities in which the principal and interest are unconditionally guaranteed by the United States Government including, but not limited to the following at a maximum of 100 % of excess available funds: Cash Management Bills Treasury Securities - State and Local Government Series (SGLS) Treasury Bills Treasury Notes Treasury Bonds Treasury Strips The maximum length to maturity of any direct investment in United States Government Securities is five (5) years from date of purchase. C. United States Government Agencies The CRA Controller may invest in bonds, debentures, notes or callable securities issued or guaranteed by United States Government Agencies, provided such obligations are backed by the full faith and credit of the United States Government. Such securities will include, but not be limited to the following with a maximum investment of 50% of excess available funds and no more than 10% in any individual issue: United Stated Export - Import Bank with direct obligation guaranteed certificates of beneficial ownership Farmer Home Administration certificates of beneficial ownership Federal Housing Administration debentures General Serviced Administration or fully United States Maritime Administration Guaranteed -Title XI Financing New Communities Debentures that the United States Government Guarantees Debentures United States Public Housing Notes and Bonds that are guaranteed by the United States Government United States Department of Housing and Urban Development Project notes and local authority bonds The maximum length to maturity of any direct investment in the United States Government Agencies is five (5) years from date of purchase. D. Federal Instrumentalities (United States Government sponsored agencies) The CRA Controller may invest in bonds, debentures, notes or callable securities issued or guaranteed by United States Government sponsored agencies (Federal Instrumentalities) which are not full faith and credit agencies limited to the following with a maximum of 50% of excess available funds and no more than 10% in any individual Instrumentalities: Tennessee Valley Authority Federal Farm Credit Bank (FFCB) Federal Home Loan Bank or its Board Banks (FHLB) Federal National Mortgage Association (FNMA) Federal Home Loan Mortgage Corporation (Freddie-Macs) Including Federal Home Loan Mortgage Corporation participation certificates Federal student loan Marketing Association (Sallie-Mae) The maximum length to maturity of any direct investment in any Federal Instrumentalities is five (5) years from date of purchase. E. Interest Bearing Time Deposit or Saving Accounts The CRA Controller may invest in non-negotiable interest bearing Time Certificates of Deposit or savings accounts in banks organized under the laws of this state and / or in national banks organized under the laws of the United States and doing business and situated in the State of Florida, provided that any such deposits are secured by the Florida Security for the Public Deposits Act, Chapter 280, Florida Statues. Additionally, the bank shall not be listed with any recognized credit watch information service. Investment in time deposits or savings accounts may be at 100 % of available funds. The maximum length to maturity of Interest Bearing Time Deposit is five (5) years from date of purchase. F. Commercial Paper (Short Term Paper- Corporation) The CRA Controller may invest in commercial paper of any United States company that is rated, at the time of purchase, "Prime-l" by Moody's and / or "A-I" by Standard & Poor's (Prime commercial paper). If the commercial paper is backed by a letter of credit (LOC), the long-term debt of the LOC provider must be rated "A" or better by at least two nationally recognized rating agencies. The maximum of 15% of excess available funds may be directly invested in prime commercial paper with a maximum of 10% of available funds with any one issuer. The maximum length to maturity for prime commercial paper shall be 180 days from the date of purchase. G. Bankers' Acceptances (Short Term Paper- Banks) The CRA Controller may invest in Bankers' Acceptances issued by a domestic bank or a federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System. At the time of purchase, the short-term paper must be rated, at a minimum, "P-I" by Moody's Investors Services and / or "A-2" by Standard & Poor's. The maximum of 15% of available funds may be directly invested in Bankers' Acceptances with a maximum of 10% of excess available funds with any one issuer. The maximum length to maturity for Bankers' Acceptance shall be 180 days from the date of purchase. H. State and / or Local Government Taxable Debt The CRA Controller may invest in State and / or Local Government Taxable general obligation and / or revenue bonds rated at least "Aa" by Moody's and / or "AA" by Standard & Poor's for short-term debt. The maximum of 15% of excess available funds may be directly invested in State and / or Local Government Taxable. The maximum length to maturity for the State and / or Local Government debt security is three (3) years from the date of purchase. I. Registered Investment Companies (Mutual Funds) The CRA Controller may invest in shares of open-end and no-load Mutual Funds provided such funds are registered under the Federal Investment Company Act of 1940 and operated in accordance with 17 C.F.R. 270 2a-7, which stipulates that Mutual Funds must have an average weighted maturity of 90 days or less. In addition, the share value of the Mutual Funds must be equal to or greater than $1.00. The maximum of 100% of excess available funds may be invested in Mutual Funds. The maximum of 75% of available funds may be invested with any one Mutual Fund. The mutual funds shall be rated "AAm" or "AAm-G" or better by Standard & Poor's or the equivalent by another rating agency. A thorough review of any investment Mutual Fund by the CRA Controller is required prior to investing and on a continual basis thereafter and a prospectus must be provided to the CRA Controller and retained on premises for investment records. J. Repurchase Agreements The CRA Controller may invest in Repurchase Agreements composed of only those investments based on the requirements set forth by the CRA Master Repurchase Agreement. All firms are required to sign the Master Repurchase Agreement prior to the execution of a repurchase agreement transaction.(See Attachment II) A third party custodian that has a current Master Repurchase Agreement shall hold the collateral for all repurchase agreements with a term no longer than one business day. A clearly marked receipt that shows evidence of ownership must be supplied to the CRA Staff and retained on premise for investment records. Securities authorized for collateral are negotiable direct obligations of the United States Government, Government agencies, and Federal Instrumentalities with Maturities under five (5) years and must have a market value for the principal and accrued interest of 100 percent of the value and for the term of the repurchase agreement. A maximum of 50% of excess available funds may be invested in repurchase agreements including one (1) business day agreements and overnight sweep agreements. A maximum of 25% of available funds may be invested with any one institution. The maximum length to maturity of any repurchase agreement is 60 days from the date of purchase. Maturity and Liquidity Requirement~ To the extent possible, all attempts will be made to match investment maturities with known CRA fund needs and anticipated fund flow requirement. Investment of current budgeted needs shall be maintained in an operating account and / or a liquid investment account. Investment of bond reserves, construction funds, and other non-operating funds shall have a term appropriate to the need for funds and in accordance with debt covenants, but in no event shall exceed five (5) years. Portfolio Composition The investment portfolio shall be assembled to meet the liquidity needs for the CRA through a balance of short-term and medium-term maturities. In addition, the investment portfolio shall be diversified with respect to investment instruments and issuers. A listing of Authorized Investments includes portfolio composition, risk and diversification. Risk and Diversification The investment portfolio shall be assembled to meet the liquidity needs for the CRA through a balance of short-term and medium-term maturities. In order to reduce the risk of loss from over-concentration of assets in a specific maturity, issuer, instrument, dealer or bank, the investment portfolio shall be managed to minimize the potential risk from default and changes in market conditions through diversification specified in the section entitled Listing of Authorized Investments. Authorized Investment Institutions and Dealers The CRA Controller and Investment Advisors, after CRA Board approval shall only purchase securities from financial institutions which are qualified as public depositories by the Treasurer of the State of Florida, institutions designated as "Primary Securities Dealers" by the Federal Reserve Bank of New York, or from direct issuers of commercial paper and bankers' acceptances. Investments in savings accounts, certificates of deposit or other deposit accounts in a bank or savings association may be made only in qualified public depositories as defined by Florida State Statutes section 280.02. All authorized institutions and dealers conducting business with the CRA shall be given a copy of the CRA's Investment Policy Manual and be required to abide by same. The broker shall execute a certification acknowledging receipt of the Investment Policy Manual and agreeing to follow its terms and conditions. Third-Party Custodial agreements All securities purchased by the CRA, with the exception of Certificates of Deposits, shall be properly designated as an asset of the CRA and held in safekeeping by a third party custodial bank or other third party custodial institution chartered by the United States Government or any other state or territory of the United States which has a branch or principal place of business in the State of Florida as defined in Section 658.12, Florida statues, or by a national the State of Florida as defined in Section 658.12, Florida statues, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is authorized to do business in the State of Florida. Master Repurchase Agreement The Investment Policy Manual shall require all approved institutions and dealers transacting repurchase agreements to execute and perform as stated in a master repurchase agreement. (See attachment II) Competitive Biddin_q A minimum of three qualified banks or approved broker/dealers will be contacted to supply bids for required services. In all cases where competitive bidding is not feasible, the appropriateness and return of the investment shall be compared to other investments with similar maturities as well as a comparison to current market price. Competitive bids will not be required when the security involved is a new issue and can be purchased at auction or at the initial offering price. However, purchases of initial offerings must conform to the guidelines set forth in the Investment Policy Manual. Overnight sweep repurchase agreements will not be bid, but may be placed with the CRA's depository bank relating to the demand account for which the repurchase agreement was purchased. Internal Controls The CRA Controller shall establish a system of internal controls and operational procedures that are in writing to protect the CRA's assets and ensure proper accounting and reporting of the transactions related thereto. The internal controls are designed to prevent loss of funds, which might arise from fraud, employee error, and misrepresentation by third parties imprudent actions by employees. The written procedures should include references to safekeeping, repurchase agreements, separation of transaction authority from accounting and record keeping, wire transfer agreements, banking service contracts and collateral / depository agreements. No person may engage in an investment transaction except as authorized under the terms of this Investment Policy Manual. Independent auditors as a normal part of the annual financial audit to the CRA Board shall conduct a review of the system of internal controls to ensure compliance with policies and procedures. Continuin.q Education The appropriate CRA Controller shall annually complete 8 hours of continuing education in subjects or courses of study related to investment practices and products. Reportin~l The CRA Controller shall provide to the CRA Board a quarterly investment report. The report shall include the following: A listing of individual securities held at the end of the reporting period Percentage of available funds represented by each investment type Coupon, discount or earning rate Average life or duration and final maturity of all investments Par value, and market value The CRA Controller shall prepare and submit to the CRA board a written report on all invested funds. The annual report shall provide all, but will not be limited to the following: a complete list of all invested funds, name or type of security in which the funds are invested, the amount invested the maturity date, earned income, the book value, the market value and the yield on each investment. All investments shall be reported at fair value per GASB standards. Investment portfolio reports shall be available to the public. Derivatives and Reverse Repurchase Agreements Investments in any derivative products or the use of reverse repurchase agreements are specifically prohibited by this Investment Policy Manual. A "derivative" is defined as a financial instrument the value of which depends on, or is derived from the value of one or more underlying assets or indices or asset values. Responsibility The establishment of the Investment Policy Manual is the responsibility of the CRA Controller and CRA Board. The CRA Controller, under the direction of the CRA Board, shall be responsible for implementing the Investment Policy Manual and managing the CRA investment portfolio within these guidelines. Cash Manaaement The CRA Controller except where otherwise provided by the CRA Board or State law is authorized to pool the cash of various funds to maximize investment ]0 earnings where it is advantageous and prudent to do so. Investment income will be allocated to the various expenses and projects based upon need. APROVED AND ADOPTED BY THE CRA BOARD OF BOYNTON BEACH ON day of 2003 Chairman of the Board Vice-Chairperson of the Board Executive Director MEMO To: From: Re: Date: CRA Board of Directors Douglas Hutchinson Direct Incentive Program Revisions for Heart of Boynton Projects 5/2/03 I have looked at the current Direct Incentive Program for projects in the CRA area and would like to have the Board consider revisions to better respond to projects in the Heart of Boynton area. The current program would be not altered except for the following aspects. Which would only be applicable to Heart of Boynton Projects. The Minimum project size in the heart of Boynton to qualify for the program would be set at $500,000 in new assessed taxable value upon completion 1. $500,00 to $999,000 (5 pts) 2. $1,000,000 to $1,999,999 (10 pts) 3. $2,000,000 to $2,999,999 (15 pts) 4. $3,000,000 plus (20 pts) · Points for "Project Location" in the Heart of Boynton (20 pts) · Under "Type of Project", add points for projects that only contain fee simple residential unit ownership, · Include under "Project Quality" points for projects such items as assisted living, community needs space, etc., · Include under "Project Quality" points for live / work units, · Under "Economic Impact Requirements" waive criteria and award an automatic · score of (20 pts). These scoring adjustments will encourage the development of key aspects in the community and address project size, scale and content more appropriately. 1682 MEMO To: From: Subject: Date: CRA Board Douglas Hutchinson Direct Incentive Request from the Arches of Boynton Beach Project May 5, 2003 The CRA has received its first request for Direct Incentives under the approved Direct Incentive Program from the Arches of Boynton Beach project. This project is being developed by Boynton Ventures, LLC, Kevin Lawler, project contact. The project is located on two blocks on Federal Highway in the CBD. The northem most extent of the project is Ocean Ave. and Federal Highway. The project occupies approximately 75% of this block. The project extends one block to the south on Federal Highway and occupies 100% of this block. The land area is approximately 3.51 acres. The project is proposed to be comprised of 276 fee simple residential units, 40,500 sq.ft, of retail space, 12,100 sq.ft, of office and 669 parking spaces. The project has been submitted for site plan approval consideration at the May CRA Board meeting. Current assessed value of the property is $2,634,375 with a projected appraised value of $104,700,000 upon completion. Taxable value is projected at $74,000,000 after adjustments and exemptions. The project is projected to generate $820,000 in annual property tax increment to the CRA or $9,400,000 when adjusted over the incentive period of 10 years. At the maximum incentive scoring, the project could qualify for $4,700,000 over a ten year pedod. The project has requested program incentives which include a $2,000,000 up front draw for infrastructure and public area development. The project application is attached for your review. Staff has reviewed the application for incentive consideration and has the following analysis. Program Guidelines Compliance: The project meets all Program Guidelines. However, as a conditional item, the applicant will be required to provide tax office certificates verifying current 'tax payment status and current assessed value on all properties within the project. Application Completeness: The applicant has supplied the required project description as defined in item #1 which includes; location, size, uses, square footages, amenities, and features. 1683 Page 1 0/'4 The applicant is scheduled for site plan review by the CRA Board on the May Board meeting. This package will include all plans required by item #2 of the application. The applicant has supplied project status and project time line in the application, items #3 & #4. Item #5 is a requirement for third party feasibility. The feasibility study included in the application is completed by the applicant and related firms. The study is comprehensive and quotes several independent sources. Further, the applicant's professional experience is in project feasibility analysis for downtown infill projects. The applicant fully complies with third party documents for the project appraisal and economic impacts (items #6 & #7); therefore staff would suggest that the feasibility of the project is in the applicant's hands to secure project financing and that the analysis supplied be accepted. Program Scoring Criteria: The project qualifies for the following scoring criteria. · Project Size: For the purpose of application scoring, the new assessed value projection shall equal the projects projected appraised value times 90%, minus current assessed value of the project site. The project scoring formula is: $104,700,000 MAI projected appraised value X .90% = $94,230,000 - $2,634,375 current assessed value = $91,595,625 total new assessed value. However, because the project is fee simple, the residential units will enjoy a homestead exemption for part of the assessed values, therefore, the adjusted taxable value is $74,032,200. Scoring is 20 points for projects over $25,000,000. · Type of the Project: The project contains major elements sought after by the CRA for the program. The project's commitment to public area, step backs for heights, mix of uses and inclusion of commercial space would make this project eligible for maximum points of 20. · Project Location: The project location is at one of the defining intersections in the Boynton CBD. The relation to the new downtown on Federal would make the project eligible for maximum points of 20. · Economic Impact: The third party economic impact analysis has used the direct incentive program criteda for inflation escalators and projections. The projected annual throughput of the project as defined by third party analysis is $24,822,788. The annual projected incentive is $410,359. The annual throughput is 60.5 times the annual incentive. The scoring requires a 50 times incentive or greater for annual throughput to receive maximum points. The project would be eligible for maximum of 20 points. Project Quality: The project's architecture, public spaces, variety of elements and overall relation to the CBD set a benchmark of quality for projects to come. Substantial work has been done by the applicant to 1684 Page 2 of 4 meet or exceed city requirements and standards. The applicant's eagerness to work with staff has facilitated a quality project both from a private and public point of view. This category of point scoring is subjective and therefore staff has no fixed recommendation. Maximum possible points are 40. Conditional Items: As a conditional item, the applicant will be required to provide tax office certificates verifying current tax payment status and current assessed value on all properties within the project. The project incentive request contains a special element in the form of a up front lump sum amount for project infrastructure and public spaces development. While this request would not follow a straight forward incentive distribution, the program does have latitude to address the project's request; i.e., under "Establishing Incentive Percentage:" "...However, the percentage may be adjusted by the CRA Board after consideration of whether the incentive is requested prior to project completion and in light of other incentives given to an applicant by other sources such as infrastructure improvements provided by the City of Boynton Beach." Further, under "Establishing Annual Incentive Disbursements for the Incentive Period:" "Unless incentive funds are to be paid prior to project completion..." The program gives the Board ultimate approval of incentives and the flexibility to review each based on their needs, if the Board so chooses to grant the upfront draw on incentives, staff would suggest that the developer guarantees the total amount that is being provided up front. The guarantee could take the form required to satisfy the lending source and the CRA Board. The guarantee could be required to secure CRA bonds, a bank loan or a CRA loan. The developer would be responsible for all placement costs, interest payments dudng the life of the loan and principle pay-back regardless of project completion or not. It is suggested by staff that the developer be required to pledge 100% of the eligible increment incentive from the project until the debt is retired. Debt retirement in no case would exceed 10 years per existing program guidelines. If the Principle remained unpaid at the end of the 10 year period, staff would recommend that any remaining balance be repaid as a balloon payment by the developer. The current program guidelines limit the amount of the incentive to 50% of the total amount of the projected increment revenue the CRA is to receive, thereby again insuring the CRA with a source of increment funds for repayment from the project. 1685 Page 3 of 4 A conditional item for the release of any front loaded funds would be to have a written irrevocable funding confirmation for project funding from a source compatible of underwriting the project, financials as required by CRA funding sources and copies of project building permits issued by the City. Conclusion: Staff feels that the project sets a positive standard in many aspects for development in the CBD. The front funding request is unusual; however because of the issue with city infrastructure improvements required for the downtown area and the amount of public areas / improvements included in the project, staff would recommend that a process be developed to secure such upfront funding guarantees from developers and grant the incentive request. The City has no incentives for projects to address the sizable infrastructure aspects in the CRA area. The CRA Direct Incentive Program stands as the only program to address any development cost impact or incentive issue. The concept of a developer underwriting any front-end funding has been used in other cities, more specifically Jacksonville, Florida with great success in their bond program. The one issue of critical importance is that the underwriting developers h ave to have substantial capabilities for repayment. The incentive award would be contingent on final documentation that is mutually acceptable. This document would be brought before the CRA Board for final approval. The incentive approval, in regards to this part of the request would therefore be conditional. Staff seeks the Board's Project Scoring and if approved, consideration of the approval for the applicant's request for an up front draws on incentives. If the CRA Board approves both aspects of the requested direct incentive, the Staff would work with legal to develop two sets of documents. One set of documents for the direct incentive program and a second set of documents for the up front funding guarantee aspect of the incentive. 1686 Page 4 of 4 Mr. Doug Hutchinson, Executive Director N-K Ventures LC Developing Unique Urban Places Community Redevelopment Agency of Boynton Beach Suite 109 639 E. Ocean Avenue Boynton Beach, FL 33405 April 30, 2003 RE: Supplemental Information, The Arches- Application for Direct Incentive Program Dear Mr. Hutchinson: In response to our telephone conversation, this letter contains an amended presentation of the Tax Increment Revenue attributable to the Arches project based on the Economic Impact Study prepared by PMG Associates that is contained in the application submitted by Boynton Ventures 1 LLC on April 14, 2003. All forecasted data presented immediately below is directly from the report prepared by PMG Associates; the only difference in the presentation of information is the time frame - 10 years as shown below versus 14 years presented in the PMG Associates' report. Tax Increment Revenue -- The Arches Year Amount I $ 820,718 2 $ 845,340 3 $ 870,700 4 $ 896,821 5 $ 923,725 6 $ 951,437 7 $ 979,980 8 $ 1,009,380 9 $ 1,039,661 10 $ I ,070,851 Total $ 9,408,613 Cumlative $ 820 718 $ 1,666,058 $ 2,536 758 $ 3,433 579 $ 4,357 304 $ 5,308 741 $ 6,288 721 $ 7,298 101 $ 8,337 762 $ 9,408 613 I trust the revis,~ presentation of this information is responsive to your needs. Sincerely, //' ,,,~ J. Kevin Lawlor On behalf of Boynton Ventures 1LLC cc. Nancy C. Graham Ryan Weisfisch 1687 319 Clematis Street · Suite 512 · West Palm Beach, FI 33401 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program The Boynton Beach CRA seeks to encourage large-scale projects, which define new markets, quality, innovation and character in the CRA area. It is recognized that many times these benchmark projects require new and untested market assumptions, which have no local comparable. This condition often requires market support to make the projects feasible in the eady years. Accordingly, this program is focused on support for qualified, benchmark projects during their initial stages. As defined by the focus of this program, projects which directly compete with existing projects, or that do not open new markets may not receive maximum consideration. Projects will be scored by program criteria, which are defined in Program Guidelines. The project's score will determine how much, if any, of the eligible incentive the project may receive. Application to this Program is no guarantee of funding. Funding is at the sole discretion of the CRA Board. 1688 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 1 of 13 TABLE OF CONTENTS PROGRAM GUIDELINES Page 3 II. PROGRAM SCORING CRITERIA Page 4 III. PROGRAM ADMINISTRATION Page 7 IV. INCENTIVE PROGRAM APPLICATION: Page 9 V. STREET LISTING Page VI. MAP AND BOUNDRIES Page 12 VII. CONTACT INFORMATION Page 13 1689 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 2 of 13 PROGRAM GUIDELINES: · The project must be in the City of Boynton Beach CRA Area as defined at the time of application and at the time of the approval of the application by the CRA Board. · The applicant must be the majority owner (the owner having the greatest percentage of ownership) or authorized agent of the majority owner in the project. · All property taxes, fees, city/county liens owed by the applicant must be paid and current. · The project is required to be over $2,000,000 in projected new assessed taxable value upon completion. · The project's projected total annual economic impact to the City (after completion) as projected by using RMS Economic modeling standards, shall be a minimum of 20 times the corresponding year's incentive during the incentive period. · The duration of the incentive shall be no longer than 10 years. · The incentive will generally not exceed 50% of the CRA TIF revenue generated by the project during the incentive period. · No incentive (in any one year) shall exceed 75% of the new annual TIF revenue generated directly from the project for that year. · Projects may be phased; however each phase must meet program thresholds. · Projects must score at least 50% on this application to qualify for incentives. 1690 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 3 of 13 PROGRAM SCORING CRITERIA: · Project Size (total new assessed value) (up to 20 pts). For the purpose of application scoring, the new assessed value projection shall equal the project's projected appraised value times 90% minus current assessed value of the project site. 1. $2,000,000 to $4,999,999 (5 pts) 2. $5,000,000 to $9,999,999 (10 pts) 3. $10,000,000 to $24,999,999 (15 pts) 4. $25,000,000 + (20 pts) (/~_~,~ Type of Project (up to 20 pts)- Preferred use criteria. Evaluation of the project is based on its consistency with redevelopment plans and its appropriateness within the overall economic context. Depending on location, additional consideration will be given to the following commercial uses. 1. Mixed uses with residential component. 2. Mixed uses with office component. 3. Hotels/Conference Centers. 4. Multi-story professional-retail buildings (business and financial services) 5. Medical & Health care services 6. Multi-story office-retail only buildings with the following type of retail tenants: a. Restaurant/Specialty Foods, b. Entertainment, c. Art galleries, d. Apparel, e. Gift Shops/Decorative Arts/Specialty Stores/Boutiques. 7. Retail only buildings with a minimum of four tenants (from the above.liSt). Project Location (up to 20 pts) - Must be within the CRA area (/~ ~/// 1. In CRA Area only- (10 pts). 2. In CRA Area and in the CBD District, Federal Highway, Boynton Beach Blvd. Ocean Ave., and MLK - (20 pts). (Projects in these areas are high impact and have the highest visibility.) City of Boynton Beach 1 (~) 1 Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 4 of 13 · Economic Impact- (up to 20 pts) ~" 1. Projected economic impact over the incentive period of 20 to 49 times the incentive - (15 pts) 2. Projected economic impact of 50 times the incentive or more - (20 pts) · Project Quality - (up to 40 pts) Point allocation based on project architecture, landscape features, public amenities, innovation, quality, overall contribution to the Community, etc. ,, ~ ~")~ Establishing Incentive Percentage: ~ Point scores from each of the five criteria elements will be added together and the total taken as a percentage times the eligible maximum incentive (up to 50% of the new assessed tax amount) to establish the incentive formula percentage. For example, a score of 100 pts or more equals 100% of 50% (maximum program capture of assessed TIF) is the project's incentive capture formula. A 70 pts scored equals 70% of the 50%. Note that incentives are defined as percentages of the new assessed TIF increment as it appears on the official tax rolls, therefore, any actual dollar figures prior to project completion and listing on the tax roll, are only estimates. However, the percentage may be adjusted by the CRA Board after consideration of whether the incentive is requested prior to project completion and in light of other incentives given to an applicant by other sources such as infrastructure improvements provided by the City of Boynton Beach. Establishing Annual Incentive Disbursements for the Incentive Period: Unless incentive funds are to be paid prior to project completion, the incentive shall be normally disbursed in ten (10) annual installments after required actions have been completed by applicant. Although annual percentages of the incentive may vary to respond to early project needs, they shall not exceed 75% of the new increment tax for any single year. The cumulative incentive shall not exceed 50% of the new assessed increment's taxes for the total incentive period. The project applicant may request that the incentive be "front loaded" in the following formula: 75% first year, 75% second year, 60% third and forth years, 50% fifth and sixth year, 40% seventh and eighth years, and 25% ninth and tenth years. The method of calculating "front loading" would be to City of Boynton Beach ]. (~)2 Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 5 of 13 project the ten year TIF based on the first year's taxable values times the project's incentive percentage formula (based on the project's score received from the CRA) and then the annual incentive is adjusted to follow the "front loading" percentage schedule above. The taxable value is monitored annually prior to incentive award to assure that any movement in value will be reflected in the calculation. 1693 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 6 of 13 PROGRAM ADMINISTRATION: · Project applications shall be screened and reviewed by staff for completeness and scored. · Staff or a selected review committee shall provide pertinent comments on the project. · The review period shall not exceed forty-five (45) days from the date of the submittal of a completed application. On or before the end of the 45-day period staff shall either forward the application, their findings and recommendations to the CRA Board for consideration at the next regularly scheduled meeting or request, in writing, that the applicant provide additional information (A copy of the staff or review committee recommendation will be forwarded to the CRA Board.). · Upon consideration by the CRA Board, the Board shall take one of the following actions: Approve, table, modify or reject the application. The applicant shall be notified in writing as to the Boards decision with in 5 days. If the application is denied, the applicant may resubmit a revised application for reconsideration. Note that any direct or indirect lobbying of the CRA Board will result in disqualification of the applicant from the program. · "Request for Incentive Funds" - If the project is approved, a "Request for Release of Approved Incentive Funds" for the initiation of incentive fund payments is required to be sent to the CRA unless incentive funds are to be paid prior to project completion, a request from the applicant is due no later than January 1st of the year after the project (or a phase) appears on the official property tax rolls and every year of the incentive period thereafter. If the project's property taxes are paid in full and the project fully complies with the program, the Earned Incentives will be dispersed no later than March 1st of that same year and will be based on the prior year's collected taxes. · In the "Request for Incentive Funds" the applicant shall supply evidence of program performance; (1) Tax Statement identifying the project or phase on the Tax Assessor/Collector's property Tax Roll and (2) receipt of payment in full of the levied property tax. 1694 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 7 of 13 INCENTIVE PROGRAM APPLICATION: The following information shall be compiled in a loose-leaf binder, tabbed and labeled to correspond with the following section headings. This information package is the program application. The application shall be forwarded to the CRA Office with a formal letter of request containing a narrative of the project, reason for request, justification and a summarizing the highlights of each of the following sections. The letter should be signed by the applicant or authorized agent and be accompanied by 12 sets of the completed project information. Project Information: · Applicant Information 1. Applicant (Majority Owner) Name. 2. Listing of Owners by Ownership Percentage. 3. Applicant Address, Phone Number(s), Fax, Email Address. 4. Contract Person's Name, Title, and Contact Information. 5. Attach a Brief Resume on the Applicant and Principals. (Exhibit "A") · Project Information 1. Project Description (One Page Narrative) · Project Location, · Size- area and appraised value, · Zoning, · Uses (commercial, residential, mixed use, etc.), · Square Footages of Uses, · Amenities, · Features - construction finishes & materials, colors, etc. 2. Plans (if not previously CRA approved) - site, floor, elevations, landscape, colored renderings, etc. (Exhibit "B") 3. Project Status (for example, has the project been submitted for Initial Site Review, Site Plan Approved, Permitted, etc.) 4. Project Timetable with Projected Dates. 5. Feasibility Study Summary - (A copy of the study's summary conclusions dated within the last 6 months prior to the date the application is filed with the City of Boynton Beach Community Redevelopment Agency Dlract Incentive Program 1/14/03 Page 9 of 13 Requesting for Incentive "Front Loading". The project applicant may request that the incentive be "front loaded" in the following formula: 75% first year, 75% second year, 60% third and fourth year, 50% fifth year and sixth year, 40% seventh year and eighth year, 25% ninth year and tenth year. The method of calculating "front loading" would be to project the ten year TIF based on the first year's taxable value times the project's incentive formula (based on the project's score received from CRA Board) and then the annual incentive is adjusted to follow the "front loaded" percentage schedule above. The taxable value is monitored annually prior to incentive award to assure that any movement in value will be reflected in the calculation. 1695 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1 / 14/0 3 Page 8 of 13 · COMMUNITY REDEVELOPMENT AREA STREET LISTING EAST-WEST AVENUES · Boynton Canal C-16 North Boundary · NW&NE13thAve. · NW & NE 12th Ave. · NW&NE11thAve · Martin Luther King Ave (NW & NE 10th Ave) · NW & NE 9th Ave, NW 9th CT · NW & NE 8th Ave · NW&NE7th.Ave, NW7thCT · NW & NE 6th Ave · NW & NE 5th Ave, NW 5th CT · NW & NE4th Ave · NW & NE 3rd Ave, NW 3rd CT · W Boynton Beach Blvd (NW & NE 2nd Ave). · NW&NElstAve. · Casa Loma Blvd · W & E Ocean Ave to the Intracoastal Waterway · SE 1st Ave from SE 3rd Street to US Highway No 1 (Federal Hwy) · SE 2nd Ave from Florida East Coast Railway to US Highway No I (Federal Hwy). · SE 3rd Ave from Flodda East Coast Railway to US Highway No I (Federal Hwy). · SE 4th Ave from Florida East Coast Railway to US Highway No 1 (Federal Hwy). · SE 5th Ave from Florida East Coast Railway to US Highway No I (Federal Hwy). · SE 6th Ave from Florida East Coast Railway to US Highway No 1 (Federal Hwy) · NORTH-SOUTH STREETS NW 5th St from Ocean Ave to Boynton Canal C-16 NW 4th St from Ocean Ave to Boynton Canal C-16 NW 3rd St from Ocean Ave to Boynton Canal C-16 · NW 2nd St from Ocean Ave to Boynton Canal C-16 · NW 1st St from Ocean Ave to Boynton Canal O-16 · Seacrest Blvd from Ocean Ave to Boynton Canal C-16 · NE 1st St. NE2nd St · S E & N E 3rd St from E Ocean Ave to Boynton Canal C-16. · SE&NE4thSt · US Highway No 1 (Federal Hwy) from SE 6th Ave to Boynton Canal C-16 · NE 5th CT 1698 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 11 of 13 o o CRA office.) The study must be completed by an experienced third party firm. The Study shall be based on appraisal, market conditions, comparable projects, financing and all factors affecting the development of a stand-alone project, without the inclusion of incentives. Property value and inflation increases shall be no greater than 3% annually. MAI Appraisal Summary - (A copy of the appraisal's summary conclusions dated within the last 6 months prior to the date the application is filed with the CRA office.) MAI Appraisal of the current land and any improvements as is and the project's projected value upon completion. Economic Impact Study - (A copy of the study's summary conclusions dated within the last 6 months prior to the date the application is filed with the CRA office.) The study must be completed by an experienced third party firm. The analysis shall forecast CRA and City economic impacts, specifically including CRA TIF revenue forecasting using RMS standardized economic models. The request for incentives and application, if and when approved by the CRA Board, becomes an integral component of the Incentive Agreement, including but not limited to other requested information from the CRA, therefore great care should be taken to seek the most accurate projections possible for the project. The approved Incentive Agreement may be assigned with the formal, prior written approval from the CRA Board of Directions. 1697 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 10 of 13 MAP AND BOUNDRIES CRA ~ea in. = 1 ~00; miles 1699 City of Boynton Beach Community Redevelopment Agency Direct IncenlJve Program 1/14/03 Page 12 of 13 CRA DIRECTOR: Address: Office: Fax: E-Mail Hours: CONTACT INFORMATION Douglas Hutchinson 639 E Ocean Ave, Suite 107 B°ynton Beach, FI 33435 561.737-3256 561-737-3258 hutchinsond(~).ci.boynton-beach.fl.us 8:00 AM - 5:00 PM Monday - Friday 1700 City of Boynton Beach Community Redevelopment Agency Direct Incentive Program 1/14/03 Page 13 of 13 TH E ARCH ES BOYNTON BEACH FL Application for Direct Incentive Program Boynton Beach CRA April 14, 2003 By: Boynton Ventures I LLC BOYNTON VENTURES ! LLC April 14, 2003 Mr. Doug Hutchinson Executive Director Community Redevelopment Agency of Boynton Beach Suite 109 639 E. Ocean Avenue Boynton Beach, FL 33405 RE: Application for Direct Incentive Program Fundinq Dear Mr. Hutchinson: We are please to submit for the consideration of the Boynton Beach Community Redevelopment Agency ("CRA") this application under the Direct Incentive Program adopted by the CRA on January 23, 2003. We believe this application and our project - The Arches - represents a significant landmark for the CRA. The Arches has been designed to incorporate significant superior public features and blend a major mixed-use development project into the existing fabric of the downtown area and, at the same time, create a substantial anchor to what we believe will be the center of downtown Boynton Beach - the intersection of Ocean Avenue and Federal Highway. The design of the Arches has been crafted as a landmark to downtown Boynton Beach for the decades ahead. This application is also a landmark in that it represents the first, formal project application for the CRA's recently adopted Direct Incentive Program. We have carefully reviewed the application requirements and believe we materially meet or exceed the requirements of this innovative program. Included within this application is all requested information. Organization of Our Application Our application has been prepared to fully and completely comply with the submission requirements of the guidelines of the Direct Incentive Program. For ease of review by the CRA, we have organized our response as follows in relation to the guidelines: AS SPECIFIED PER GUIDELINES, AS PROVIDED IN THE PAGES ? AND 8 ACCOMPANYING APPLICATION · Applicant Information See Sections A and F · Project Information 319 CLEMATIS STREET, SUITE 512 · WEST PALM BEACH, FL · 33401 PHONE: (561 ) 832-4177 · FAX: (561 ) 832-2864 Mr. Doug Hutchinson, CRA of Boynton Beach RE-' Application for Direct Incentive Program April 14 2003 Page 2 1. Project Description See Section B, Pages land 2 2. Plans See Section B, Pages 3-22 3. Project Status See Section A, Pages 1 and 2 4. Project Timetable See Section A, Page 2 5. Feasibility Study See Section C 6. MAI Appraisal See Section D 7. Economic Impact Study See Section E The preceding reference table is lieu of a table of contents. Each of the sections which accompany this letter has been prepared to be freestanding. Rationale for Our Request Though not required by the application guidelines for the CRA's Direct Incentive Program (pages 7 and 8) the partners of Boynton Ventures 1 LLC ("the applicant") would like to share with the CRA a number of crucial considerations which underpin the rationale for our request for funding. For over two years, we have been following the visioning and planning of the City and CRA to create a well defined "downtown" in Boynton Beach. In keeping with that vision and the CRA plan, during the past year as we have assembled land, we have prepared 5 different development concepts as we examined the "right" scale, density, and project composition. As our development plans were tested, refined, and retested for viability (including numerous meetings with the Mayor, City Manager, and staff), we emphasized our development philosophy -- that at the heart of creating a great urban place is public space -- an essential focal and gathering point. In the Arches, we have accomplished this by the introduction of a major public plaza in the northern block, directly at the intersection of Ocean Avenue and Federal Highway. This public gathering place is also responsive to and consistent with the public vision for "downtown" Boynton Beach. Yet public space without access and animation is essentially a spatial void. To provide public access throughout this tight urban site, we have artfully incorporated a series of distinctive "arches" to connect the two block area comprising the project's footprint. We have further introduced a strong retail component to surround the plaza as well as connect the ground floor plain between the two major block areas. In addition to these core "public" design features, we have designed the Arches to honor the retail edge of Ocean Avenue and placed a signature architectural design element directly at the intersection of Ocean Avenue and Federal Highway. We strongly believe the project's "connectivity" BOYNTON VENTURES 1 LLC Mr. Doug Hutchinson, CRA of Boynton Beach RE: Application for Direct Incentive Program April 14 2003 Page 3 - physical space and design treatments -- will create a quintessential, anchor to the emerging downtown area of Boynton Beach. In formulating the development plan for the Arches we have endeavored to balance the financial risks of introducing a major new mixed use project on a non- waterfront location, with incorporating the stated objectives of the City and CRA of creating a vibrant "downtown" area for Boynton Beach. The Arches is the first of several planned new developments in the downtown area. While we are confident that our project is well conceived, and highly responsive to stated public objectives, we are equally mindful that the Arches will be a pioneering development of substantial scale, in a yet to be established local market area. To manage the higher than average risk of developing in market area with no recent track record of the development of a new major mixed use project and on a non-waterfront site, we considered and could have designed the project to be more "insular", and self contained. However, we consciously chose not to design the two block area as a stand alone project, with a public "edge". Our decision to be responsive to the stated public objectives for the downtown area has a significant cost implication - costs well above those we would have otherwise had to incur for the project. In order to incorporate significant, high quality public space into the project as well as develop retail use at a scale greater than we would have customarily chosen, the project development budget for the Arches is-approximately $4.5 million greater than if we had elected to pursue project which did not emphasize high quality public space. Through this application we are requesting the CRA via its adopted Direct Incentive Program, to assist in defraying theses added costs. Funding Request We believe the design and development program for the Arches will, when fully evaluated pursuant to the criteria adopted by the CRA, result in the maximum rating. As the first truly "downtown" development project to be constructed within the Boynton Beach CRA, we believe the Arches will be the standard for other projects to follow and that the participation by the CRA in the project will set the standard of quality for other projects which may follow. The success of the Arches -- in terms of the physical quality of execution and fundamental financial performance - is as important to the CRA, as the applicant, in our opinion. As the first truly "downtown" project, the public be will be receiving an exception physical "place" which will endure for decades. At the same time, meaningful market acceptance and performance of the Arches will serve to reinforce the delivery of other projects currently proposed for the downtown, as well as signal to the investment community the attractiveness of further investment in "downtown" Boynton Beach. BOYNTON VENTURES ! LLC Mr. Doug Hutchinson, CRA of Boynton Beach RE'- Application for Direct Incentive Program April 14 2003 Page 4 We are requesting the maximum funding permissible under the CRA's adopted guidelines - namely 50 percent of the Tax Increment Revenue -to be generated by the Arches during its first 10 years. We are requesting CRA funding to be provided in the following form: An initial $2.0 million in direct funding during the construction; this funding will be used to reduce, in part, the upfront costs of the public areas, streetscape and the portion of the garage which supports free parking to the public for the commercial component of the project. The balance of the Direct Incentive to be provided over a 10 year period after completion and on a "front loaded" schedule; this funding will be used to amortize the balance of the public area improvement costs of the project. We look forward to the opportunity to meet with the staff and Board of the CRA to further present the Arches and our application for funding under the Direct Incentive Program. We trust that the CRA will reach deem the Arches to be of substantial merit to wart. ant of this e~ -'~~ a ppr oval a pplic at ion. R esp J. Kevin Lawler Member Manger cc. Nancy C. Graham Ryan Weisfisch BOYNTON VENTURES 1 LLC Section A- Summary of Applicant Information 1. Project Name: 2. Current Status 1. Project Profile 4. Project Sponsor: Project Ownership 6. Project Contact 7. Project Schedule 8. Assessed Value (2003) The Arches of Boynton Beach · 2/28/2003 Formal Site Plan Application submitted · 3/3/2003 Alley Abandonment application filed. a. Land Area 3.51 acres b. Development Residential 276 for sale units Uses: Retail 40,500 sf, net Office 12,100 sf, net Parking Spaces 669 c. Project Amenities Public: Plaza and pedestrian access throughout; free on-site parking for commercial and retail uses (structured parking and open space at grade); public art work and water featu res. Private: Roof top pools and cabanas; full interior project amenities and valet parking. Boynton Ventures 1 LLC 31 9 Clematis Street, Ste 51 2 West Palm Beach, FI 33401 50% N-K Ventures LC (Nancy C. Graham and J. Kevin Lawler co- owners) 50% Maxwelle Real Estate Group LLC (Ryan Weisfisch, sole owner) J. Kevin Lawler Member Manger Boynton Ventures 1 LLC (561) 832-4177 See schedule on the following page. $2,634,375 A-1 Section B- Project Development Plan Development Plan Summary The applicant filed with the City of Boynton Beach, Department of Planning and Zoning, all required sets of the complete site plan and related civil engineering drawings for the Arches on February 28, 2003. The applicant has a scheduled meeting with The City of Boynton Beach's Technical Review Committee ("TRC") on April I 5, 2003. As CRA staff is an integral part of the TRC process, we have not reproduced or restated in entirety drawings or information which is contained in applicant's filings to date for the purpose of the project Site Plan Review and Approval process. Section A- Summary of Applicant information provides a programmatic description of the Arches project. The narrative summary presented in this section is submitted to supplement information which may not be available in other sections of this application or information in Site Plan Review documents the applicant has on file with the City. Site Plan/Density. The site plan of the Arches has been design to visually flow and connect -- at all levels, will retaining the existing street grid of the downtown. The ground floor plain of the Arches introduces a core design element -- the" arches" -- to create pedestrian connections and a strong visual flow within both of the two blocks comprising the 3.51 acre site as well as between them. The "arches" are 27 feet in height and as a design element have been incorporated to other fa(;ade elements of the project, including the mid block motor court on the southern block and the entrances to the parking garage. The project as a whole has been design to gradate the flow of density, starting from the northerly edge on Ocean Avenue and Federal Hwy at 3 stories (approximately 40 feet) westerly to five stories (approximately 57 feet) and then stepping up to 10 stories on the southern edge of block (approximately 139 feet). Density is then stepped downward to 8 stories (approximately 87 feet) and 4 stories (approximately 47 feet) on the southerly block of the project. Overall the project's residential program at 276 units is slightly less than 80 units per acres (as permitted under the Mix-Use High density zoning). The project site plan -- ground floor and upper levels has been design as a series of interlocking spaces, unified by architectural elements, while preserving the exiting street grid. The project's 4 main arches form one of these key elements. Other design elements which unify the project included the extensive high quality treatment of public space on the ground floor of the two block project site area, high quality building materials such as brick facades, the discrete separation private residential spaces to the rear and upper levels of the project site plan. Articulated building bases with store fronts, pilasters, cornices and arcades convey a scale and friendliness of a main street. Public Spaces. At the heart of the Arches is superior public space -- accessible and open year round. Internal public space in the form a "grand" plaza organizes and unifies the northern block and provides the essential public connection to Ocean Avenue. The public plaza is 12,500 square feet in area (a quarter of an acre) and contains both large open gathering areas as well as more intimate "rooms" created by the placement of high quality landscaping. A central feature of the public plaza is a major fountain -- a design element common to most civic spaces of prominence. The purpose of the fountain is to provide relief and balance to the hardscape and landscape elements of the plaza as well as a visual focal point. The "public space" of the Arches is carried through to the southern block areas as well as the external edges of the project on Ocean, Federal, First and Second Streets. The use of a well conceived pallet of plant materials (50% native species) and high quality exterior materials proved a unified appeal. Public pedestrian access has been created though the entire project areas to permit free flowing circulation. Adjacent to ground floor public B-1 Section B- Project Development Plan spaces of the Arches will be an attractive complement of retail and commercial tenants to provide local and community serving market appeal. The lined street edges of the Arches create a sense of a pedestrian friendly place. Architecture. The Arches is a composition of scale, architectural styles and materials, designed in a transitional architectural vernacular, to comfortably introduce a major contemporary project into the existing grid fabric of the downtown Boynton Beach. It is classic "main street" architecture which reflects a composition of styles - traditional in form - in a single, unified project resting on a two block area. Unlike many stand alone projects which elect a single architectural style and resulting uniformity, the Arches strives to create texture, consistent with the differing fabric of a downtown. In contrast to projects which seek their identify with an architectural "cap", the Arches has been designed with the streetscape and pedestrian as the primary focus. The use of articulate storefronts with awnings, together with projected lighting and signage activate the base of all buildings. The use of articulated facades with differing building materials creates a rich texture, similar to that of an urban core over time. The use of height in the case of the 10 story residence tower creates definition to the public plaza as well as definition for the southern residential block. The placement of height and its undulating form through the project varies - in part to create the interplay of light and space as well as reinforce the "main street" feel throughout the project, not just the Ocean Avenue frontage. The building materials of the project - a combination of brick, stucco, glass and ironwork have been selected to reinforce the diversity of texture common at a "main street". At the corner of Ocean Avenue and Federal highway, the Arches includes a signature design element at three stores. This design feature has been created as a clear demarcation of the importance of this intersection and to serve as an "arrival" statement to the center of downtown. B-2 Section B - Project Development Plan B-3 Section B - Project Development Plan B-4 Section B- Project Development Plan B-5 Section B - ProJect Development Plan ltl [1-t5 Section B- Project Development Plan B-7 Section B - Project Development Plan B-8 Section B - Project Development Plan Section B- Project Development Plan B-lO Section B- Project Development Plan :i B-11 Section B- Project Development Plan B-12 Section B- Project Development Plan B-13 Section B - ProJect Development Plan B-14 Section B - Project Development Plan B-15 Section B- ProJect Development Plan B-16 Section B- Project Development Plan B-17 Section B - Project Development Plan B-18 Section B - ProJect Development Plan B-19 Section B- Project Development Plan B-20 Section B - Project Development Plan B-21 Section B - Project Development Plan B-22 Section C - Project Feasibility Project Feasibility The development program and framework for the Arches has been market and financially driven from the outset of the project's inception. Presented in this section are the key: "feasibility" considerations the applicant has made during the project planning for the Arches. These considerations are presented in market and financial terms. Market Potential The Arches has been designed and will be positioned to capitalize on two dominant, overarching market forces. Both of these market dynamics support a fundamental, increasing demand for multifamily condominiums in Palm Beach County throughout this decade. The first market dynamic is the nation-wide increase in demand for condominium product thought this decade. In the previous decade (1 990-2000) demand for condominium units rose from 1.6 % of total US housing demand (1991) to 4.4% (2000) and is projected to increase to 6.3% of total housing demand in the nation by 2010. Total Households Change Owner Households Owner % Owner Change Owner % Change Owners in Building of 5 Units or More % of All Households % of Ail Owner Households Change Average Annual Demand (units) % of all Households % of Owner 8o,i3 0Oo Occupied HH 1 990 91,990,000 11,600,000 59,070,000 64% 7,720,000 62.7*/. 1,522,000 1.7% 2.6% 118,000 11,800 1.0% 1.6% 2010 117,480,000 12,000,000 79,350,000 68% 9,530,000 79.4% 2,490,000 2..1% 3.1% 500,000 50,000 4.2% 6.3% Source: US Bureau of the Census 1980, 1990 and 2000 Census of Hosing; Clarion Partners 2003. C-1 Section C - Project Feasibility The underpinnings of demand for condominium units nation-wide and in Palm Beach County is an aging population - households of 45 years of age or more. Through this decade, the most significant increase in housing demand is by households in the age brackets (e.g. cohorts) of 45-54 years of age and 55-64 years of age. These are "graying" baby boomers. Age of Household Head Under 25 23-34 35-44 45-54 55-64 65-74 75 & Over Total 920 8,200 15,790 15,940 9, 80. 8i080 69~820 2010 1,100 8,320 13,600 19,030 19,910 11,180 9,200 79,340 18o 120 2,190 1,700 9,520 Annual % Increase 19.6% 1.5% -13.9% 17.9% 13.9% 13.6% Source: US Bureau of the Census, 2000 Census of Housing, STF-3, Table H14; Clarion Partners 2003 Palm Beach County has been one of the nations "Top 10" housing markets for condominiums units. Of the nations 248 major housing markets, Palm Beach County ranks as the sixth (6th) largest in existing condominium inventory. Rank i 2 3 4 5 6 7 8 9 i0 Source: US Bureau of the Census, 2000 Census of Housing, STF-3, Table H Occupied Units ! 46,428 14 ! ,074 ! 20,064 92,180 80. O 67, 55,860 40,860 38,869 33,450 C-2 Section C - Project Feasibility During the shifting housing market of the 1 990's, Palm Beach County remained in the Top 10 US housing markets in terms of condominium absorption. Rank 1 2 3 4 5 6 7 8 9 10 CoOk, IL Annual Absorption 4,4 ! 0 2,096 2,052 1,492 !,216 1,097 948 755 665 Source: US Bureau of the Census, 1990 and 2000 Census of Housing, STF-3, Tables H022 and H32 On average, condominiums in Palm Beach County accounted for approximately 2 percent of the national housing demand throughout the 1990's - an average of 937 units absorbed per year. During the 1990's significant shift in regional housing markets were underway, yet traditionally strong SE Florida County - Miami-Dade, Broward, and Palm Beach - remained a dominate force in the nations housing market for condominium units. In recent years, the Palm Beach County housing market has shown a marked indifference to year to year changes in local employment growth. As depicted in the chart immediately below, Palm Beach County housing market has had a relatively flat trend line, while substantial year to year gains and losses in employment have characterized the county's labor market. 50000 40000 30000 20000 10000 0 -10000 -20000 Employment and Housing Trends Palm Beach County I"e''Employment Increase ~Housing PermitsI C-3 Section C - Project Feasibility During the past 5 years, the Palm Beach County housing market has steadily increased production to over 10,000 units per year, reaching 1 2,1 20 units in 2002. During this time period, there has been no correlation between annual housing production in the county and year to year gains in local employment. In most, but not all, housing markets, there is a direct correlation between annual housing demand and changes in the local employment base. Most notable for Palm Beach County, is the gain of nearly 40,000 new jobs in 2000, followed by a decline of 10,000 jobs in 2001 and a recovery of all prior year job losses in 2002. During this time interval, housing production in the county remained essentially stable at an average annual permit level of I 1,120 units per year. This statistical market indicator, coupled with market "street knowledge" of the declining inventory of traditional western suburban land in Palm Beach County -leads to the second market dynamic which directly affects the outlook for the residential units planned at the Arches - a constrained county-wide housing market with increasing emphasis on higher density product along the coastal communities such as Boynton Beach. A core market feature of this decade will be (i) a local housing market which is constrained in production due the declining base of developable land at the western and northern edges of the county, and (ii) an increasing share of housing production along the coastal communities in "infill" sites. Location 1 2 3 4 5 6 7 8 9 10 Total Name of Project The Slade 6] 0 Clematis Esplanade Grande City Plaza The Moorings moscana Palmetto Place Boca Grande Townsend Place Ocean Plaza # of units 200 259 66 350 376 421 244 164 195 2,331 % Sold 80% 42% 94% 44% 62% 81% 87% 61% 82% 84% 68% DeveloPer Related Group of Florida BAP Development Royal Palm Communities Kolter Lennar Homes/Related/N-K Omega Developers South Coast Partners Related Group of Florida Boca Developers S. Florida Beach Properties C-4 Section C - Project Feasibility The housing 'infill" phenomena in Palm Beach County has been well underway over the past 5 years. Palm Bach County's coastal communities such as Boca Raton and Delray Beach have few sites remaining for infill housing. West Palm Beach has experienced the absorption of over 900 new housing units (for sale and rental) in the past 4 years. The market acceptance of "infill" condominium development in central and lower Palm County's coastal communities is now well established. At present, there are 10 projects currently being marketed for sale - with a total of 2,331 units. Of these, 68 percent or 1,585 units have been sold to date. Our experience with the Moorings located in Lantana is directly relevant to Boynton Beach and the prospective market acceptance of the Arches. Units at the Moorings have been priced in range of $190,000 - $540,000 and have received exceptional market acceptance for the non-waterfront product offered to date. Units at the Arches are being priced (in today's dollars) in a similar price range. The average unit price at the Arches, in today's dollars, has been initially set at $305,000. Unit pricing will continue to be refined as unit floor plans are finalized and as market conditions dictate at the time the project's presale program is initiated. The unit sizes and mix of the 276 unit residential program at the Arches is presented immediately below': Unit Types 1 BDRM 1 BDRM + 2 BDRM 2 BDRM + 3 BDRM Total Average Unit Size (sf) 13.4 31.1 31.9 21.1 2.5 100.0 4.5 21.6 14.6 56.8 2.5 100.0 8.3 25.7 22.1 41.3 2.5 100.0 The ultimate market acceptance of the Arches residential program will be established during the project's pre-sales program. Based on our current development schedule, we anticipate a "soft" opening of the presales program during Thanksgiving of 2003 and the full scale pre-sales marketing program to commence during the second week of January 2004. ' Unit sizes, mix and pricing is the subject on on-going refinement through proprietary research and analysis performed by N-K Ventures LC, Maxwelle Real Estate Group LLC, and our market research provider Metro/Study of Boca Raton, FL. C-5 Section C - Project Feasibility Once presales of 50 percent or more of the units is reached, construction will commence. The Arches will not commence construction until a threshold of presales of the residential units, preset with the project's construction lender, has been achieved. The Arches commercial competent - 41,000 sf of retail space and 12,100 sf of office space have been designed to serve local and community level demand. Our market research strongly indicates a steady demand of professional services office space - either for lease or for sale. Market support for the project's retail space, on the other hand, is expected to be generated from tenant's expanding and relocating within the broader "downtown area, as well as new tenant attracted to the downtown in response to the increase in areas households (the Arches and other project in the in development "pipeline"). Presented below is a target retail mix for the Arches. The final retail mix will be subject to tenant availability and lease terms, as well as tenant credit quality during the lease-up period. Bank/Financial Services Restaurants Convenience Food Convenience Services Apparel & Accessories Jewelry Arts & Related Books, Cards, etc. Household Furnishings Total 11,000 5,000 3,500 4,500 2,500 4,500 2,500 3,500 41,000 9.8% 26.8% 12.2% 8.5% 11.0% 6.1% 11.0% 6.1% 8.5% ! 00.0% The retail program and mix for the Arches has been established based on the applicant's assessment of local market area needs which include a balanced array of local shopping, convenience and dining opportunities. At 41,000 square feet, the retail program at the Arches is not "destination" or comparison shopping retail. Yet our research and prospective tenant contacts to date indicate local market area which may well be substantially undeserved. Accordingly, it is our going in market judgment that the critical challenges will be acceptable rent levels and managing the lease-up for the target tenant type mix We expected lease-up of the retail space to be completed within 9 months after the project completion. Competitive market area rental rate are currently estimated at $19-24 per square foot, nnn. Financing and Cost of Capital The real estate capital markets are highly liquid at present and most major institutional capital providers for major real estate projects are in search of attractive investment opportunities. The final capitalization of the Arches will reflect, at the time of development, the most competitive capital structure then available. The sponsors have organized the capital structure into two parts. The first is the selection of an appropriate "vertical" development C-6 Section C - Project Feasibility partner. The second is the selection of the most attractive institutional equity package for the project. Both parts of this selection process are underway and are expected to be completed in early to mid summer of 2003, once all entitlements and approvals for the Arches are in place. The development budget for the Arches is currently priced at $74.9 million. This includes all hard and soft costs, purchase of the land, demolition, permits and all associated fees. The applicant expects an overall project capitalization structure which will include a conventional construction loan, institutional equity capital, co-investment equity capital provided by the applicant and its "vertical" development partner and construction completion guarantee by the applicant and the vertical development partner. Construction Loan Institutional Equity Co investment Equity Completion Guarantee Total $:i 50:Oo,eo0 $ 3;975,000 $ 925,000 $ 74,900,000 73.4 % 20.0% 5.3% 1.2% ! 00.0% Currently the cost of construction debt capital is at a historic Iow. Major money center banks are typically pricing construction loans pegged to LIBOR, plus 180-200 basis points. Lock-ins are presently priced at an additional 60 to 100 basis points, bringing the effective rate on a construction loan to a range of 4.4 to 4.6 percent. How long construction loan rates will remain Iow (or are priced with a limited risk premium) is judged to be speculative. For the purpose of our internal analysis, the sponsors forecast construction loan rates to migrate upwards over the course of the next 6 month, either due to interest rate changes from the Federal Reserve or "risk premium" pricing by major lenders. Construction loans in excess of $40 million are generally syndicated by most major lenders and which currently have an additional pricing premium based on our recent discussion with possible lenders for the construction loan on the Arches. The non debt capital for the project - equity -- will come from an institutional capital partner as well the applicant and its vertical partner. Institutional equity capital is readily available for well designed projects with experienced development sponsors3 Financial Feasibility Boynton Ventures 1 LLC has made the determination that Arches, as presently designed, is financially feasible, subject to the outcome of this request for CRA funding under the Direct Incentive Program. Financially feasible, as defined by the applicant means: (i) an attractive, marketable development program with adequate density to offset land costs; (ii) the availability of third party capital - construction debt and institutional equity - in an amount and at a price sufficient to provide institutional equity partners with required rates of return on capital deployed, and (ii) a risk adjusted return on the sponsors capital reflective of the risks inherent in large scale mixed use development project such as the Arches. 2 See ULI Real Estate Capital Markets Update, Volume 5, Number 1-3 for a current composite of the US real estate capital markets. C-7 Section C - Project Feasibility The Arches will be the pioneering and defining downtown project for Boynton Beach. While national and county wide trends are expected to provide broad market support for the project, site location and product specific characteristics will determine the ultimate market acceptance of the project. "Downtown" Boynton Beach is yet to be established location for new "in town" living. While Palm Beach County coastal communities such as Delray Beach to the south and West Palm Beach to the north have gone through their initial "pioneering' phase and are now well established, Boynton Beach has not. The two block area of the project at Ocean Avenue and Federal Highway is not a waterfront location which limits, by definition, the price points at which residential units can be sold, thereby placing a challenge on controlling the overall development budget for the project. The Arches also includes approximately 40,00 square feet of ground floor retail space. While we believe that this retail space can enhance the downtown and the project as well, this magnitude of space under current market conditions has a higher than average risk profile. The retail industry in retail is suffering a nation-wide malaise from overbuilding space and under performing sales levels. The "trade area" dynamics of the downtown further do not readily support today, a new retail complement. Accordingly, we believe that the retail space will need to be aggressively leased at rental levels which are consistent with local and community serving tenants, not higher paying national "chain" tenants. This of course places added pressure on controlling the project's development budget. Purpose of Request - Offset Public Area Costs The Arches has been designed and will be developed as the preeminent landmark for "downtown" Boynton Beach. The project plan emphasizes superior public space, together with distinctive architectural and design features that are not customarily incorporated into stand alone project of a similar scale. The project's design stresses open, public accessibility with high quality materials and landscaping in order to achieve a place of significant for downtown Boynton Beach. We are requesting a CRA Direct Investment to directly offset additional development cost to incorporate "public elements" into the Arches that would not otherwise be financially justifiable. Specifically, the design and development program for the Arches incorporates several essential public elements which have a highly beneficial affect for the "downtown" area of Boynton Beach, but which generate no return on capital to the project as a whole. In total, the Arches as currently designed, has an additional $4,500,000 in additive costs. (These additional costs do not account for an equivalent cost "saving" the applicant could realize by designing the project in conformance with applicable zoning requirements, with the "public" elements incorporated into the project.) A central feature of the Arches is the public plaza - designed as an inviting year round public gathering space. The north edge of the Arches has been designed in a manner to enhanced downtown Boynton Beach by honoring the traditional retail frontage on Ocean Avenue and to bring focus to Ocean Avenue as a public gathering place via the introduction of a major public plaza on the north block of the project This public gathering place will be maintained by a permanent easement to provide a the public focal point for the "downtown". In order to "connect" Ocean Avenue with the public plaza, the project introduces a signature design element - a series of distinctive arches. These arches, each detailed with a distinctive character and high quality materials, provide the means for pedestrian access from the north off of Ocean and the south, of First Street and the project's public parking area on the south block. C-8 Section C - Project Feasibility We have also included in the Arches a substantial complement of retail space - at a level above which would be warranted in light of on-site and existing area demand. This retail space is supported by 151 packing spaces which are to be provided free of charge to the general public. Further enhancing the pedestrian and community friendly design of the Arches is the careful attention to high quality external streetscape and landscaping. We feel strongly that the introduction of the public space is a long term "value-added" investment for the City and the CRA. We could have mitigated these costs by substantially reducing the amount of retail space in the project, adding additional units, and enclosing the public plaza and locating traditional project amenities in these areas rather than the more costly solution which is an integral part of the high quality presentation and character of the Arches. We believe that the "public spaces significantly enhances the purpose of creating a viable "downtown" area in Boynton Beach which will inure to the benefit of the community at large as well as other development projects which are currently planned to follow the Arches. C-9 BOYNTON VENTURES I, LLC The Arches on Ocean Avenue A Proposed Mixed Usc Development With 276 Condominiums, 43,630 Sq. Ft. of Retail and 12,870 Sq. Ft. of Office Located at the Southwest Comer of Ocean Avenue and Federal Highway, Boynton Beach, Florida APPRAISAL #3041 Roe~Minor REALTY CONSULTANTS April 14, 2003 Mr. J. Kevin Lawler Boynton Ventures I, LLC 319 Clematis Street, Suite 512 West Palm Beach, Florida 33401 It o e Illll M in o r REALTY CONSULTANTS Bruce C. Roe, CRE, MAI St. Certo Gen. REA No. 0000073 Charles E. Minor, MAI St. Cert. Gen. REA No. 0002?52 Zillah L. Tarkoe, MAI S1. Cert. Gen. IlEA No, 0001800 Re: Appraisal//3041 The Arches on Ocean Avenue A Proposed Mixed Use Project with 276 Condos, 43,630 Sq. Ft. of Retail and 12,870 Sq.Ft. of Office Located at the Southwest Comer of Ocean Avenue and Federal Highway Boynton Beach, Florida 33435 Dear Mr. Lawler: At your request, we have completed an inspection and analysis to appraise the property referenced above. Our analyses have been prepared in conformance to the Uniform Standards of Professional Appraisal Practice (USPAP). The essential data and analytical process used in estimating our final value estimate are included within the attached report. This is a complete appraisal presented in a summary format. The purpose of this report is to estimate 1) the market value "as if vacant" of the property under the current zoning, and 2) the prospective market value to a single purchaser at completion of the planned improvemen/s. We also calculated the gross retail sales (which is .total expected revenue) from the residential, office, and retail components of the proposed development. The values are of the fee simple interest as of March 15, 2003. The intended use of this report is for asset evaluation by the intended user, Boynton Ventures I, LLC, who is also our client. Other intended users include the City of Boynton Beach Community Redevelopment Agency's Direct Incentive Program for CRA qualification. Our value opinion is qualified by general assumptions, limiting conditions and definitions, which are set forth in this report. Please review these on pages 67 through 69. Based on our analysis, the market value(s) and other figures requested of the subject property, as set forth, documented and qualified in the attached report are: MARKET VALUE "AS IF VACANT" OF SUBJECT PROPERTY WITH CURRENT ZONING AND LAND USE: AS OF MARCH 15, 2003 THREE MILLION DOLLARS - ($3,000,000) (At a reasonable marketing period estimated to be 6 to 12 months) 1131 S.E. Third Avenue · Fort Lauderdale, FL 33316-1109 · (954) 763-8033 · Fax: (954) 763-8157 · www. roeminor, com APPRAISALS · CONSULTATIONS · STUDIES PROSPECTIVE MARKET VALUE UPON PHYSICAL COMPLETION OF PROPOSED DEVELOPMENT PLAN INCLUDING 276 UNITS, 43,630 SQ.FT. OF RETAIL, AND 12,870 SQ.FT. OF OFFICE: EXPECTED 1st QUARTER 2006 NINETY-THREE MII.LION TWO HUNDRED THOUSAND DOLLARS - ($93,200,000) (~It a reasonable marketing period estimated to be 6 to 12 months) TOTAL GROSS RETAH~ SALES, WHICH IS TOTAL REVENUE EXPECTED FROM SALES OF THE. RESIDENTIAL, OFFICE, AND RETAH. COMPONENTS OF ~ PROPOSED DEVELOPMENT PLAN OF 276 CONDOS, 43,630 SQ.FT. OF RETAH,, AND 12,870 SQ.FY. OF OFFICE: YEAR 2006 ONE ~RED FOUR MILLION SEVEN HUNDRED THOUSAND DOLLARS - ($104,700,000) The above values are at a reasonable exposure and marketing period estimated to be from 6-12 months for the site, as well as for the property at completion with most units already sold. As requested, the market value "as is" is for vacant land; if we had considered the current improvements, the value could be different. Prospective value is based on the presumption of good quality construction and Floor plans/building plans, competent management, professional marketing, and economic stability. Additionally, it is predicated on the hypothetical assumption that the improvements exists, when in fact, at present, the property does not have proper zoning and land use for the proposed use. This value estimate is subject to unforeseeable events that could alter market conditions prior to the prospective date of market value. In accordance with Standards Rule 1-2, we have identified some personal property, fixtures, and/or intangible items that are not real property, but are included in the appraisal and the value estimate. In our opinion, the personal property included in this appraisal in the prospective valuation of the completed improvements has a contributory value of $275,000, based on calculations supported in the following report. To be consistent with market perceptions, we have not valued the personal property separately. Following is the narrative appraisal report that details our valuation process. Sincerely, Charles E. Minor, MAI State-Certified General Real Estate Appraiser No. 0000073 sZ]Jlea.hceL~tiTfiao~ ;ee~eMralAIReal Estate Appraiser NO. 000180~ Associates, Inc. Deerfield Beach Attamonte Springs Economic, Marketing and Management Consultants DETERMINATION OF ECONOMIC IMPACT OCEAN AVENUE CITY OF BOYNTON BEACH MARCH, 2003 3880 NW 2nd Court ~ Deerfield Beach, Florida 33442 ~ (954) 427-5010 ~ Fax (954) 480-8836 DETERMINATION OF ECONOMIC IMPACT OCEAN AVENUE CITY OF BOYNTON BEACH The determination of the economic impact of any project is an identification and measurement of the total fiscal activity that results from the business endeavor. This activity includes the revenues derived from the project, as well as any ancillary spending. For the City of Boynton Beach, the impact analysis is concerned with the taxes and fees that are generated from the project. For the mixed use project considered by Boynton Ventures, this analysis will consider the total economic impact, or throughput, for both the construction phase and the permanent operation of the facility. In addition, a measurement of the annual revenues generated from the facility that accrue to the local government agencies is conducted along with population, employment and spin-off development estimates. 1. THROUGHPUT Throughput is defined as the measurement of the impacts of the aggregate business operations of the project. The revenues from the project supply this annual throughput figure as they provide the economic impact. In addition to the direct impacts from the project, indirect impacts are also generated. Indirect impacts are determined through use of an economic multiplier which identifies the additional spending achieved by suppliers and employees. For this project, the RIMS II Economic Impact Model was chosen to determine the appropriate multiplier. The following tables identify the economic impact of the project for both the permanent stage and the construction period. The permanent impact analysis generates the effects of the project on an annual basis. The construction period analysis measures the impact for the single construction time frame. TABLE 1 ANNUAL THROUGHPUT Retail Rental $ 914,760 1.8786 $ 803,708 $ 1,718,468 Retail $12,300,000 1.8784 $10,804,320 $23,104,320 -1- TABLE 2 CONSTRUCTION THROUGHPUT Category [ Direct Impact Construction ]$46,694,000 Multiplier 2.0513 Indirect Impact $49,089,400 Total Impact $95,783,400 1.1 Calculation of Throughput TABLE 3 RETAIL RENTAL REVENUES Retail Rental Revenue At 90% Occupancy $1,016,400 $ 914,760 TABLE 4 RETAIL REVENUES Square Feet 41,000 Revenues/Square Foot $300 Total Revenues $12,300,000 2. IMPACT TO THE CITY The City of Boynton Beach will generate revenues from this project based on the total taxes and fees that will be collected from the residential units, commercial tenants or in additional State funds receivable. Among the fees generated from the project are Property Taxes, Utility Taxes, Franchise Fees, Communications Service Tax, Fire Fees and State Shared Revenues. A listing of the taxes and fees generated are followed by the calculations of each of the items. The Ocean Avenue project will generate local tax and fee revenues in excess of$1 million annually. TABLE 5 TAX AND FEE REVENUES GENERATED FOR THE CITY OF BOYNTON BEACH (at build-out) CATEGORY AMOUNT TIF Revenues $ 820,718 Utility Taxes 38,370 Franchise Fees 19,185 Communications Service Tax 30,324 Fire/EMS Fee 17,887 Solid Waste Fee 21,240 State Shared Revenues 119,280 TOTAL $1,067,004 -2- 2.1 Property Taxes Based on the estimated sales prices and construction costs of this project, an Assessed Value of $74.0 million dollars is assumed. This value was derived by estimating the sales prices of the residential units and adjusting for Assessed Value. The typical ratio is that residential units as assessed at 80% of the sales prices. An assumption was made that Homestead Exemption of $25,000 would apply to 75% of the total number of units. For non-residential property, the Taxable Value is assumed to be 70% of the construction cost. The calculation of the Taxable Value is as follows: Residential: Sales Assessed Value ~ 80% Less Homestead Exemption ($25,000 for 207 units) Taxable Value $92,184,000 $73,747,200 $ 5,175,000 $68,572,200 Commercial: Construction Cost: Taxable Value ~ 70% $7,800,000 $5,460,000 TOTAL TAXABLE VALUE $74,032,200 Since the TIF analysis examines the incremental value of the project (future value less current value), it was necessary to determine the existing Assessed Value of the subject property. Using current records from the Property Appraiser's Office, it was determined that the current Assessed Value of all parcels is $2,634,375. The incremental value of the project used to base TIF calculations is then $71.4 million. The total current ad valorem millage rate for the property is 24.0706 mills which is applied to the Assessed Value of all properties. However, this amount includes all taxing entities for the subject property. When considering only the tax rate that applies for the Tax Increment Financing program (TIF), the millage rate is 12.1000 mills. Additionally, each taxing agency retains 5% of the increment taxes for administrative purposes. The result is that the project will generate an estimated $777,034 in TIF revenues. Estimated Assessed Value of Project Current Assessed value of Property Incremental Value TIF ad valorem rate Incremental Tax amount Less 5% Administrative Costs Annual estimated TIF generation $74,032,200 $ 2,634,375 $71,397,825 12.1000mills $863,914 $ 43,196 $820,718 -3- 2.2 Utili_ty Taxes Utility Taxes are levies imposed by municipalities based on the consumption of certain utilities. The City of Boynton Beach imposes a Utility Tax on electric (10% of bill) and gas (10% of bill) services. Calculations showing the amount used and the typical monthly bills for the project follow. These calculations result in an annual estimate of Utility Taxes in the amount of $38,370. 2.3 Franchise Fees Franchise Fees are similar to Utility Taxes in that the fee is imposed on utility bills. However, this fee is charged to the service providers for the right to operate within the City limits. This fee is passed on to the consumers. The City of Boynton Beach imposes a Franchise Fee on electric service at 5% of the monthly usage charges Calculations showing the amount used and the typical monthly bills for the project follow. These calculations result in an annual estimate of Franchise Fees in the amount of $19,185. 2.4 Communications Service Tax The State of Florida recently imposed a Communications Service Tax, that is applied to all telephone (including long distance) and cable TV usage in the state. Each municipality establishes a rate with certain upper limit restrictions. The current rate in the City of Boynton Beach is 5.22% of the monthly usage. Calculations showing the amount used and the typical monthly bills for the project follow. These calculations result in an annual estimate of Communication Service Taxes in the amount of $30,324. 2.5 Utility Usage Calculations Electric Usage The estimate of electric usage varies depending on the type of use. There will be a total of 276 apartments and 65,500 square feet of retail, restaurant and office uses. The following table outlines the monthly figures for each type of use. -4- TABLE 6 ELECTRIC USE CALCULATIONS Type of Use Number of Units Monthly Bill Monthly Revenues Retail 8 $350 $ 2,800 Restaurant 1 $575 $ 575 Office 10 $300 $ 3,000 1 Bedroom 94 $ 75 $ 7,050 2 Bedroom 175 $100 $ 17,500 3 Bedroom 7 $150 $ 1,050 Total Monthly Revenues $ 31,975 Annual Revenues $383,700 The total use of all facilities, per month would total $31,975. This figure on an annual basis would total $383,700. Telephone Usage There will be two distinct types of telephone bills generated, one for commercial and the remainder for residential usage. A table illustrating the generation of revenues follows. TABLE 7 TELEPHONE USE CALCULATIONS Type of Use Number of Units Monthly Bill Monthly Revenues Retail 8 $400 $ 3,200 Restaurant 1 $400 $ 400 Office 10 $400 $ 4,000 Residential 276 $ 75 $ 20,700 Total Monthly Revenues $ 28,300 Annual Revenues $339,600 Cable/DSL Usage: Cable TV use is estimated for the average bill for the tenants. It is estimated that 80% of the tenants will have cable TV service, and 50% will have DSL service. Of the businesses, it is estimated that 1/3 of the retail establishments and all of the offices will have DSL service. -5- TABLE 8 CABLE/DSL USE CALCULATIONS Type of Use Number of Units Monthly Bill Monthly Revenues Commercial DSL 13 $60 $ 780 Residential Cable 221 $50 $ 11,050 Residential DSL 138 $60 $ 8,280 Total Monthly Revenues $ 20,110 Annual Revenues $241,320 2.6 Fire/EMS Assessment The City of Boynton Beach imposes an assessment for the costs associated with providing Fire and EMS service to the residents. Based on a Fire assessment fee of $42.00 per year per multi-family unit the project generates $11,592 in fire fees from the residential component. Additionally, commercial properties are assessed a fee based on the square footage of the building. For this project, the 65,500 of commercial space would generate an annual fire fee of $6,295. The annual revenue generated from this assessment would be $17,887. 2.7 Solid Waste Solid Waste collection is performed by the City of Boynton Beach. There is a tipping fee of $6 per unit for multi-family units as well as for commercial property. Actual collection fees will be based on the size of the container. The 276 residential units and 19 businesses will generate at total of $21,240 in solid waste fees annually. 2.7 State Shared Revenues The State of Florida contributes funds to local municipalities based primarily on population. These revenues to Boynton Beach will increase due to the additional population generated from the residential housing in this project. The funds received from State Shared Revenues have been estimated based on financial reports from several municipalities in Broward County. The figure used in this analysis is $240 per capita. With an estimated population of 497, this project is estimated to generate annual revenue to the City of Boynton Beach of $119,280. 3. POPULATION Population estimates for this project is based on use ora typical multi-family household size of 1.8. With a total number of housing units of 276, the total population estimate equals 497. -6- 4. SALES TAXES Any measurement of Sales Taxes generated from this project must examine two specific sources; Sales Taxes generated by the retail segment of the project, and Sales Taxes generated by retail spending of the residents of the project. Sales Taxes from the retail segment are generated from the estimate of total sales of $12,300,000. Using the Sales Tax rate of 6%, the retail segment will generate a total of $738,000 annually in Sales Taxes. Sales Tax generation by the residents is a function of the Disposable Income available and the propensity to spend on retail items. The following table illustrates the calculation of the retail spending of the residents and the resulting Sales Tax collections. Income per household is estimated based on the rental rates and the appropriate income level to support these housing costs. Disposable income removes taxes and housing costs from the gross income. The Propensity to Spend for retail is based on spending patterns for the community as identified by the Survey of Buying Power published annually. The result is that the residents of the housing project will generate over $804,800 annually in Sales Taxes. TABLE 10 RETAIL SALES CALCULATIONS Income per household $135,000 Households 276 Total Income $37,260,000 Disposable Income ~ 45% $16,767,000 Propensity to Spend for retail 80% Total Retail Spending $13,413,600 Sales Tax ~ 6% $ 804,816 5. EMPLOYMENT Employment generated by the project includes the construction activity that exists for the time flame that the facility is being built. The permanent employment reflects Full-Time Equivalent (FTE)jobs which begins after the facility is in operation. -7- TABLEI1 CONSTRUCTION EMPLOYMENT Construction Cost $46,694,000 Labor Costs ~ 45% $21,012,300 Salary Cost * $46,322 Total Employment FTE 454 Direct Annual Employment 303 (18 month construction) Indirect Employment ~2.0513 319 TOTAL EMPLOYMENT I 622 I * Salary Costs include wages plus fringes. TABLE 12 PERMANENT EMPLOYMENT Category Direct Multiplier Indirect Total Employment Employment Employment Restaurant 12 1.9125 11 23 Retail 73 1.8784 64 137 Office 62 1.9646 60 122 7. CASH FLOW ANALYSIS The table found on the following page illustrates the benefits to the City of Boynton Beach from the completion of the Ocean Avenue project. This table identifies the revenues to be collected by the City from the Tax Increment Financing (TIF) for the CRA as well as other General Fund Revenues from Utility Taxes, Franchise Fees, Communications Service Tax, Solid Waste Fees and State Shared Revenues. The data included in the table also assumes a phasing of the project based on absorption of the residential units. -8- ~ ~ o o o_ Section F: Applicant Information Company Information N-K VENTURES LC The Company. N-K Ventures LC is principally engaged in the development of urban residential "infill" and mixed-use projects in SE Florida. Founded in 2001, the company's development activities reflect the philosophy of its founding principals - the creation of high value urban places. The company specializes in identifying unique urban properties that offer the potential to create one-of-a-kind urban living environments through the application of thoughtful, contemporary urban design approaches. Each property undergoes a rigorous pre- acquisition analysis. Once a decision is made to proceed, a team of outside design and engineering professionals is retained; each project team is specifically selected in order to insure the correct match of design requirements with the property or project. The company's principals focus extensively on "relationships" with landowners, investor-builder partners and local governments. As a result of its relationship approach to development, the company has been able to secure development opportunities that generally have not been on the market and to expedite the approval process with local jurisdictions. The company started two projects in 2001, both of which are in preconstruction and pre-sales. In 2002, the company started a multi-phase urban mixed use project which is in planning and permitting. Project Location Size/Year started Development Status Flagler N. Flagler Drive, Waterfront Development Preconstruction and Landing West Palm Beach, of 42 high end pres dales started FL townhouse on 3.5 acres- 1/2003; Sold Started 9/2001 interest to Greystar Atlantic. The Moorings US 1 and Lake Worth, Lantana FL Waterfront development of 374 for sale units and 25,000 sf of retail space and 78 slip marina. Started Aug 2001, Under construction; initial presale of 234 units in 3 days. Construction to commence May 2003; project placed in financial joint venture with Lennar Corp. and the Related Group of FL. F-1 SECTION F: APPLICANT INFORMATION "Incentive Funding". Under contract for purchase and in preliminary site plan evaluation phase. The Arches SW corner pf US 1 and Ocean Avenue, Boynton Beach, FL - 3.42 acre property on two blocks Bank of NE Corner of US America 1 and Ocean Property Ave nue Water view mixed use development of 270 units, 40,000 sf of retail space and 12,000 sf of commercial office space. Started October 2002. Mixed use residential and commercial development on 3 acres Site Plan approval process underway; concurrently in application for CRA The company is also evaluating the purchase of addition property for development is SE Florida and other locations throughout the State. The Principals. N-K Ventures LC is co-owned by Nancy C. Graham and J. Kevin Lawler. Nancy Graham. Nancy is a nationally recognized leader in urban development and city building. Nancy is responsible for the planning, design and entitlement process of the company's projects. Nancy's commitment to superior design and place making, together with her keen attention to intergovernmental relationships enables the Company to expedite the entitlement process for its projects. Immediately prior to starting N-K Ventures, Nancy was President of the Palm Beach Division of Watermark Communities, Inc ("WCI"). During her two years at WCI, Nancy was responsible for the planning and entitlement of several large- scale communities and the sale of 11,000 acres of surplus properties from WCI's purchase of the 15,000-acre McArthur Foundation holdings in Palm Beach and Martin Counties. Through Nancy's leadership, WCI embarked on several new innovative communities, including Evergrene and the Jupiter Yacht Club. While at WCI, Nancy also served on the Florida Growth Management Study Commission and chaired the urban redevelopment subcommittee. As the City of West Palm Beach's first "strong" mayor from 1991 through 1999, Nancy gained national recognition for her visionary and dynamic leadership. Ranked in the "Top 25 US Mayors" by Newsweek in 1997, Nancy was responsible for taking a fiscally impoverished city and transforming it to national prominence through innovative fiscal measures, careful attention to customer service and sponsorship of major new development projects, including CityPlace, a 2.3 million square foot urban mixed use project that has received wide acclaim since opening in the fall of 2000. Nancy was the co-recipient of ULI's annual Award of Excellence in 2002 for CityPlace. Her cornerstone vision for West Palm Beach was enterprise investment in the downtown and adjacent older neighborhoods, with detailed attention to human scale design and the creation of bold inviting public spaces, such as Centennial Plaza with its dancing interactive fountain (renamed by the City as "Nancy Graham Centennial Plaza", the Meyer Amphitheater and other waterfront improvements. Combined, these investments resulted in the vibrant rebirth of Clematis Street (the City's historic "main street"), and established West Palm F-2 SECTION F: APPLICANT INFORMATION Beach as a leading cultural and entertainment venue. Started under her direction, West Palm Beach sponsors and manages several nationally recognized award-winning events including Clematis by Night and the Green Market. Prior to her career in public service, Nancy maintained an active and successful law practice, concentrating in the areas of land use and environmental law for private clients. Nancy is a graduate of The University of Central Florida (1979, with high honors) and The University of Florida College of Law (1981, No. 2 in Class). Nancy's vision and leadership have been recognized through numerous national, state and local awards, including the U. S. Conference of Mayors' City Livability Award and the 1000 Friends of Florida Community Steward Award. Nancy has been the subject of feature stories in Working Woman Magazine and The New York Times. Governing Magazine honored her in November 1998 as one of ten "Public Officials of the Year." She is also active in a number of civic organizations and in 2002 served as chair of the American Heart Association annual campaign and "Heart Walk" for Palm Beach County. She has served as a Board member of Palm Beach National Bank and is an active member of the Urban Land Institute, serving on the Mixed Use Council (Red Flight). J. Kevin Lawler. Kevin is the Member Manger of the company and has over 25 years of national experience as a real estate financial and deal advisor. For N-K Ventures, Kevin is responsible for initial underwriting of all new development projects, investor and capital relationships and all transactional aspects of the company's ventures and investments. Kevin also manages subcontractor relationships, and together with Nancy is involved in the identification and qualification of new business opportunities. Kevin's career in real estate has involved over $4.5 billion of development, financing and investment transactions throughout the United States. Kevin was a Partner in the Real Estate Advisory Services practice of a major financial services firm in their Washington, DC and Miami offices. Kevin's national practice involved advising developers, corporations, non-profit organizations and public entities on financing and large-scale development transactions. His experience includes: large-scale commercial development projects, owners and tenant lease transactions REIT formations, commercial property portfolio structuring and recapitalization, corporate real estate ventures, public-private development and financing transactions. Kevin has assisted a number of Florida cities in the creation, evaluation and negotiations of public-private transactions, including the cities of West Palm Beach, Daytona Beach, Miami Beach, Miramar and Temple Terrace. Kevin is currently a member of the Urban Land institute's ("ULI") "leadership group" and serves on the Policy and Practice Committee and is a member of the Multi-family Council. He has served on numerous Panel Advisory Services and ULI project analysis teams, and served as a Vice Chair of the SE Florida Council. In October 2000, ULI recognized his service with the Robert O'Donnell Award. Kevin has also lectured extensively on real estate development and financing, including Harvard Business School, the Wharton School, Georgetown University Business School, George Washington University Business School, the University of Maryland and Miami Law School. Prior to relocating to south Florida, Kevin served on the Economic Development Committee of the Washington Board of F-3 SECTION F: APPLICANT INFORMATION Trade for several years. He is a graduate of Michigan State University and received a MCP from the Kennedy School of Government at Harvard University, where he was also a Mellon and Ford Foundation Fellow. MAXWELLE REAL ESTATE GROUP LLC Maxwelle Real Estate Group LLC was incorporated in early 2002 for the purposes of perusing development opportunities in South East Florida and the NY City vicinity. Maxwelle identifies properties that in today's markets are not optimizing their highest and best use. In 2002, Maxwelle formed several partnerships to undertake 3 separate projects: Harrington Commons, Jupiter Point, and The Arches. Harrington Commons was a single family home situated on 2.2 acres in Northern NJ. After a successful land use change, the approved 18-unit luxury town home project has now been appraised at 55% above our purchase price. The partnership is scheduled to GC this project through completion, with ground breaking scheduled for May of 2003. Jupiter Point is an eleven acre waterfront marina and boat dealership located along the Hobe Sound waterway. The property boasts unobstructed views of the intercostals waterways along with, along with 38 marina slips. The partnership awaits site plan approval of the ultra luxury 96-unit residential condo building. The Arches encompasses almost 2 complete city blocks in downtown Boynton Beach. The roughly 3.5 acre site is located on the city's prime intersection of Ocean Avenue and US 1. The property will house 276 condo units, +/- 40,000 square feet of retail, along with 12,000 square feet of office space. The site offers downtown living with many of the units allowing views of the Atlantic Ocean. The company's sole shareholder is Ryan Weisfisch. Prior to starting Maxwelle, Ryan successfully transformed a single-family New York City Brownstone into a mixed-use multifamily dwelling with both professional space and residential living. Through a series of variances and by maximizing the property's FAR, Ryan was able to double the property's appraised value, and increase cash flow 220%. Ryan started in the real estate industry by way of the hospitality business. Through a family partnership, he entered into his first venture with the acquisition of a full-service 193-room Holiday Inn located in Austin, Texas. Over the next seven years, through successful partnerships, Ryan's role in accumulating a portfolio of approximately 2,500 hotel rooms included: pre-acquisition due diligence, franchise agreement negotiations, securing both equity and intuitional capital, and a variety of management responsibilities. Ryan's undergraduate studies were at the American University in Washington DC, with his degree awarded in Finance. Ryan has also completed the short program at Conrad N. Hilton College of Hotel & Restaurant Management at The University of Houston. F-4