The URL can be used to link to this page

Minutes 05-09-06 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, ON TUESDAY, MAY 9,2006 AT 6:30 P.M. REVISED MINUTES Present: Henderson Tillman, Chairman Stormet Norem, Vice Chair Alexander DeMarco Marie Horenburger Steve Myott Guam Sims Ken Spillias, Board Attorney Lisa Bright, CRA Director Absent: Jeanne Heavilin I. Call to Order Chair Tillman called the meeting to order at 6:30 p.m. II. Roll Call The Recording Secretary called the roll and declared a quorum present. It was also noted Mayor Taylor, Commissioner Ensler and City Manager Bressner were present. III. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Item E, League of Cities Gala Dinner Dance & Installation, was added to the agenda for discussion. There were no objections to adding the item under Item IX, New Business. This was reflected in the revised agenda that was distributed. B. Adoption of Agenda Motion A motion was made by Vice Chair Norem to approve the revised agenda as presented. Ms. Horenburger seconded the motion that passed unanimously. IV. Consent Agenda: A. Approval of Minutes - Retail Demand Analysis Workshop - March 23, 2006 B. Approval of the Minutes - CRA Meeting - April 11 , 2006 C. Approval of Financial Results - April 30, 2006 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 E. Approval of Increase in CRA Per Diem Travel Rate Ms. Horenburger pulled Item IV. E. for discussion. F. Rescind Resolution 05-08 for "As Needed" Contract for Former Director G. Approval of Job Task Analysis Work Product & Recommendations Vice Chair Norem pulled Item IV. G. for discussion. H. Approval of Contract with LJ Craig & Associates for CRA Strategic Plan Implementation I. Approval of Fa~ade Grant - Main Street Car Wash - $15,000 Mr. Sims pulled Item IV. I. for discussion. J. Review of Cost Analysis of Outside Consultants Employed by CRA Ms. Horenburger pulled Item IV. J. for discussion. Motion A motion was made by Vice Chair Norem to approve the Consent Agenda less the items that were pulled. Ms. Horenburger seconded the motion that passed unanimously. V. Public Comments: Chair Tillman opened the public audience for comments on issues not on the agenda. The following individuals spoke: Herb Suss, spoke about the Heart of Boynton (HOB) project, the Liberti issue and recommended Phase II of the HOB project be put on hold. He indicated the CRA is advisory to the City Commission and suggested bringing the issue to the City Commission for a moratorium on Phase II. He explained traffic will be an issue, changes with eminent domain may make the issue invalid, and the citizens and taxpayers should have input on the regentrification. David Zimet, representing the Boynton Beach Faith Based Community Development Corporation supported the sentiments of Mr. Suss. He expressed the importance of moving forward, and explained there are issues such as inclusionary zoning, gap financing, and other positive measures that should be addressed. There were no further comments. Chair Tillman closed the public audience. VI. Public Hearing There were no items for public hearing. VII. Pulled Consent Agenda Items: 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 E. Approval of Increase in CRA Per Diem Travel Rate Ms. Horenburger asked whether there was any enabling legislation containing a standard for per diem travel expenses. Mr. Reardon responded the existing level of per diem rate is above the standard. Motion A motion was made by Ms. Horenburger to approve the increase in the CRA per diem travel rate. Vice Chair Norem seconded the motion that unanimously passed. G. Approval of Job Task Analysis Work Product & Recommendations Vice Chair Norem asked what the basis of arriving at the salary figures in the product was. Lisa Bright, Executive Director, explained Dr. Lindsey Willis, who conducted the analysis, included the recommendations, which was not part of the scope of services. Ms. Bright indicated she would prefer to handle salaries in a different manner and had no objections to approving the item less the salary recommendations contained in Section C, Proposed Orqanizational Chart and Other Recommendations of the report. Ms. Horenburger questioned the likelihood of a staff reduction as it pertained to the new eminent domain changes. Ms. Bright anticipated staffing would remain at the current level. Motion A motion was made by Ms. Horenburger to approve Item G, with the exception of Section C as previously discussed. Vice Chair Norem seconded the motion, which unanimously passed. I. Approval of Fa~ade Grant - Main Street Car Wash - $15,000 Mr. Sims questioned the amount of this item, which was listed in previous minutes as $5,000. Additionally he requested clarification on the amount of match required for the program. Mr. Vince Johnson, Planning and Development Manager for the CRA, responded the first request for $5,000 was withdrawn by the owner who was still in the process of submitting invoices for payment. Mr. Johnson explained the owner spent $34,000 on the improvements. As a policy matter, the program will allow for a match of up to 50% and the recipient was entitled to the maximum allowable match of $15,000. Motion A motion was made by Vice Chair Norem to approve Item I, the grant award for Main Street Car Wash. Ms. Horenburger seconded the motion. Ms. Horenburger suggested putting the Fal;ade Grant Program to workshop. She expressed with so much redevelopment occurring, she would not want to see money spent on improving buildings that may be demolished or sold. Vote A vote was taken to approve the Fal;ade Grant for Main Street Car Wash and the motion unanimously carried. 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 J. Review of Cost Analysis of Outside Consultants Employed by CRA Ms. Horenburger requested clarification of this item. Ms. Bright explained Mr. Jonathan Ricketts was overseeing the services of Kimley Horn as part of the Burkhart contract for services. She explained that project is nearly complete. The Way Finding Signs was a Public Works project that the CRA became involved in. It has been over a year and seven out of ten signs will be erected this month. The signs not scheduled to be erected are on private property and are being worked on. Securing permission to install the signs, some of which are located in the Department of Transportation (DOT) Right-of-Way is still underway. Ms. Horenburger indicated the CRA paid $300,000 for a professional to oversee professional engineers. She hoped this would not become common practice. Ms. Horenburger also discussed The Urban Group (TUG). Ms. Bright explained TUG is in place for relocation services and that service is the only reason the contract still exists. The board further discussed consultants overseeing contractors. Mr. Sims questioned the necessity of it, whether it was common practice and the bottom line justification. Ms. Bright explained the Burkhart contract was structured that way by the former director so she could not answer with any degree of accuracy. She expressed Mr. Ricketts was basically put in place as a project manager. Mr. Reardon explained the Promenade project needed an overseer to gather the specifications, which is common practice if a staff person cannot serve in that capacity. He explained if the project is a major project, using a consultant may occur, but as a general practice, he clarified using a consultant for this purpose would not be likely. Chair Tillman recommended when entering into a major project, requiring a design-build contract would be beneficial. It would allow maintaining the specifications to be built right into the contract services to be provided. It was noted there was a lot of overlapping. The contract requirement Chair Tillman suggested would alleviate the overlap. Motion A motion was made by Ms. Horenburger to receive and file the item. Vice Chair Norem seconded the motion, which unanimously carried. VIII. Old Business A. TCRPC Presentation of HOB Plan Feasibility Analysis Results Dr. Kim Delaney from the Treasure Coast Regional Planning Council was present, along with Mr. Robert Hamilton, Market Analyst with Metrostudy to present this item. Vivian Brooks, CRA Planner explained this was the culmination of a study to review the Heart of Boynton (HOB) Redevelopment Plan to determine whether the current land prices and construction costs in the HOB plan could be implemented by the private sector. Dr. Delaney reported the analysis had become more complex than initially thought due to some unusual conditions that are taking place within the CRA area in this neighborhood, which may be the likely causes of the stagnation of redevelopment activity. Her presentation would review the findings of their work on the project, and contain preliminary recommendations. The report would be finalized in approximately one week. 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 Dr. Delaney advised the report encompassed a review of the history of the CRA area and the five CRA districts. The current development activity was noted as being strong and Dr. Delaney indicated the CRA financial future was robust. She indicated by the year 2009/2010, another bond opportunity may exist. Dr. Delaney explained she analyzed different density scenarios to determine what type of a Tax Increment Fund (TIF) yield may become available. Dr. Delaney explained public participation and the desired outcomes (taken from the website i.e., maintaining the character of the neighborhood, encouraging home ownership, repopulating the neighborhood, minimizing gentrification were guiding principles) were reviewed. She expressed these were important elements they used in their analysis to determine the appropriate balance of financial feasibility. The densities needed to support financially feasible projects. She detailed the findings of the socioeconomic analysis, which showed there were about 3,200 residents affected having a median income of about $27,000 per year. The residents were predominantly African-American within the low median income category. There were 15 separate neighborhoods having existing land uses that were mostly residential with somewhat low densities. They were identified as having a good amount of vacant land, parks and schools within the districts. Dr. Delaney reported this was similar in the geography with the West Atlantic portion of Delray. The land use and zoning map in the plan indicates the densities were somewhat low at the time the plan was drafted. The densities are five units per acre west of Seacrest Boulevard. The existing densities are appropriate for the conditions that still exist today, which is low to very moderate densities. The analysis showed the parcels by size as having a significant amount of fragmentation, and a significant amount of individual owners. There were approximately 400 owner-occupied parcels out of about 1,100, which revealed there was not a high degree of home ownership. Overall, Dr. Delaney indicated she was impressed with the plan. She elaborated it revealed a thorough job of embracing the community with sound planning recommendations as contained in the body of the document. She expressed a strong feature and good recommendation in the plan was reorganizing the neighborhoods from 15 neighborhoods down to seven, which provided an opportunity for creating a neighborhood identity. The land use recommendations were to convert two land use categories from lower density uses, to multi-family residential, with about 11 units per acre and a 45' height limit. The mixed-use light category would have up to 40 units per acres (with some areas restricted to 20, based on roadway frontage) and a height range of 45' to 75'. This was the baseline for their testing. Dr. Delaney explained the zoning recommendations were consistent with the land use recommendations. These were to increase the density around the Martin Luther King, Jr. (MLK) corridor to about 11 units per acre and 45' height limitation, and the mixed-use light category (mixed-use not mixed-use light in the zoning plan) with 20- 40 units per acre and 40' - 75' in height. Dr. Delaney explained the three key programs recognized in the original HOB plan were the Cherry Hills neighborhood, the MLK, Jr., corridor and the SE quadrant. The land acquisition efforts have focused on the MLK, Jr., neighborhood as the premier opportunity to kick start redevelopment in the area. The design perspective revealed very appropriate scales for the neighborhood. The density and building heights along the MLK, Jr., and SE quadrant were appropriate based on the roadway and urban frame network. She explained the density is not so much an issue as the design. She explained density, designed properly, would bring a better product, often because there is more margin to improve the appearance of the building. She 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 noted the height limits adopted in the plan are appropriate for buildings on either side of the roadway network. Dr. Delaney then reviewed more specific areas. She reported the intersection of MLK and Seacrest showed appropriate design. Phase II of the plan, she confirmed was also appropriate in height for the roadway network. Phase III was represented as having more mass, and cautioned the roadways cannot handle the density. The area may need to be a four to six story profile, but no higher or it may be out of scale at that location and deteriorate the condition of the street. She indicated the west side of Seacrest has a lot of opportunity for continued implementation and the east side of Seacrest shows the initial comprehensive plan amendment and rezoning suggestions were not entirely implemented. She explained the CRA has set the stage for allowing increased densities in the plan but parcels need to come in on a parcel-by- parcel basis for zoning changes. She cautioned municipalities not give density away because it is the means government has to craft development. Dr. Delaney explained individual owners can request up zoning on a case-by-case basis. The CRA has initiated condo conversions along Seacrest and moderately scaled town home projects, that straddle Seacrest Boulevard with units east and west. Dr. Delaney explained this project revealed why development is not taking place at the pace the CRA would like to see. She explained there are some economic challenges to overcome in the neighborhood, which revealed the price points versus construction costs, left very little margin for developer profit. She further elaborated the CRA land assembly has compelled some speculation to take place which has driven property values up past the point where the deals are financially feasible. In comparisons with other CRA neighborhoods, she reported the appropriate land value is $500K to $650K per acre. The CRA's acquisitions averaged about $1.1 M per acre causing the private sector to acquire land at that rate, and not allowing the project to have enough margin to have a profit. The CRA will need to provide a subsidy and pay down the land to overcome market imbalances. The available land also provides the opportunity to have a pilot project. To obtain the price points, the CRA has to buy that down and will gain it back with future TIF revenues. Mr. Robert Hamilton, Senior Market Analyst of Metrostudy, provided a market analysis of the Heart of Boynton areas. He explained his findings in the analysis showed the factors for the South Florida market revealed over-speculation and over-supply in the housing market. He anticipated the market would need 12 - 24 months of correction time before the market returns to equilibrium and would most likely not return to the 2004 and early 2005 levels. He explained individuals accelerated their buying decisions and purchased homes in 2005 instead of 2006, meaning some 2006 demand had already occurred. He explained investors who bought homes in 2005 and are trying to flip the homes are not having much success. He reported there is a substantial amount of supply, and housing prices are coming down a bit. After the 12 to 24 month slowdown, Mr. Hamilton explained the market should pick up to historic conditions. Presently, he noted, more and more speculator homes are being listed. This will continue over the next six months. The resale market is starting to show weakness, as had been forecast and with the advent of the hurricane season, he reported if the hurricane trend continues, the housing market may not recover. The current development climate in Boynton Beach showed slower absorption and price reductions. Mr. Hamilton explained mixed-use projects are working better than single-use projects. The larger projects have generally weathered the slowdown well. Boynton Beach, as 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 a whole, should weather the downturn well, and in one to two years, the normal conditions will return. He explained the area has advantages such s roadway network proximity, i.., close to 1-95, main north/south roadways, close to Boynton Beach Mall and near major employment centers in West Palm Beach and Boca Raton, and is close to retail jobs along Congress Avenue. He explained the market challenges for the HOB and within the CRA' showed a lack of successful seed projects. The Arches and the Promenade have been started which could be construed as the seed projects, and there is a small non-cohesive downtown area without any core commercial and retail areas from which to expand. Mr. Hamilton explained there are little to no development incentives being offered, such as subsidized land costs, increased density, or flexible development regulations that would allow for innovative design features. He also noted there is also a lack of demand for market rate housing in this area. Mr. Hamilton explained they modeled the HOB under different density scenarios and developed three alternatives with four specific densities. The scenarios were based on proposed CRA zoning thresholds and housing densities from other CRAs in South Florida. Each model, was analyzed using 10.8, 20, 30 and 40 dwelling units per acre (du/acre). Other assumptions used in analyzing the models were using $1.1 M per acre on the assembled land prices. This price, is higher than the assumption of about $650,000 for the land. The construction costs would range $130 per square foot (sf) for the 10.8 du's per acre to $175 per square foot for the 40 du's per acre. The prices proposed for construction were comparable to other CRAs and were geared towards families, retirees and non-professionals. These groups were more price sensitive than other groups and the unit size tends to be smaller than what is seen along the Intracoastal Waterway or other areas of Palm Beach County. Profit from these developments averages about 15%. Mr. Hamilton explained the minimum a developer would consider for profit is 8%, which is very low. Developer profit margins have increased to about 25% over the last few years. Proposed sales would be about $215,000 for a 950 sf multi-family unit and would increase to $265,000 for the 1,350 sf townhome unit. Mr. Hamilton explained the CRA recommended density at 10.8 du/acre for the UR3 Districts, 20 du/acre MU-Low 1 Districts, and 7.26 du/acre for the R 1 Districts. Maximum units allowed would be close to 895. Assuming 15% of the project would be workforce housing, Mr. Hamilton indicated 134 units would be designated as such. Additionally, development by unit size, development cost by land cost, development potential by unit size, average sales price, and development potential at different densities were reviewed. Buyer profiles revealed townhomes tend to be dominated by families having both heads of households working (OINKS = double income, no kids). Low-rise condos, 20/du per acre are dominated (1,150 sf on average) by single head-of-households, OINKS, single professionals and some retirees. Low/mid rise condos at 30 du/acres 1050 sf, were dominated by OINKS, single professionals, retirees, empty nesters, and single parent families and roommates and for mid-rise condos, single professionals, retirees, roommates and a few OINKS were the major inhabitants. Dr. Delaney indicated the board needs to make a policy decision and decide whom it wants to build housing for. The CRA can correct market problems and explained the mechanisms to use with the private sector are density, land ownership and Tax Increment Funds (TIF), which affords the ability to buy down land today, receive the desired products, and get paid back in 10 to 20 years. Dr. Delaney reviewed TIF revenues at the different densities and concluded the 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 plan is economically feasible, but cautioned the importance that scale and neighborhood cohesion plays in the success of the plan. Dr. Delaney provided some preliminary recommendations, which were to not give density away. Increased value results in more speculation, she advised, and if the property is up-zoned, the product is not going to be absorbed any faster. Dr. Delaney recommended if property is upzoned, to make it time limited and require developers to have full construction plans within 12 months and be under construction within 12 to 24 months. If this doesn't occur, density goes back down again. This will control speculation. If considering density increases, Dr. Delaney cautioned to be very specific where they are considered. The analysis showed MLK could handle 30 du/acre and 40 du/acre at the corner of MLK and Railroad Avenue. In that area, the density should only be about one block deep. It was suggested when increasing density, to use the value gap and make demands on the developer, indicating what density, architecture, workforce housing units, and whether infrastructure needs, parks, etc., are acceptable. The densities proposed by staff were reasonable but Dr. Delaney cautioned not going above 30 du per acres and no taller than three to four stories. She also recommended maintaining an appropriate scale based on roadway width and building height. A 1 - 3 ratio was suggested because the eye should see more street. Dr. Delaney stressed using the appropriate scale would enhance the neighborhood, as opposed to detracting from nearby neighborhoods. CityPlace has about a 1-1.5 ratio. All other surrounding development will hinge on getting the scale right. When developing a pilot project, Dr. Delaney suggested there are opportunities to do this by using TIF to get a pilot project going to house the target market, and make it financially feasible. The HOB needs a success story to attract quality desired development and suggested the CRA carefully locate, price and size the project for immediate absorption. The project should have good visibility (Seacrest Boulevard or MLK, Jr.) and have enough units to be noticeable. Dr. Delaney acknowledged there is a market imbalance. The appropriate scale of the HOB district is low and has lower densities than other products coming online. She explained CRAs exist, in part, to correct market imbalances that will not be delivered solely by market force and market demand alone. Tax Increment Funds can be used to buy down land, streetscapes, homeowner assistance and other costs. Dr. Delaney recommended using sophisticated developers interested in partnering with the public to make the project work. To develop a project quickly, a developer that is well funded and able to fund the infrastructure costs and then be paid back would be ideal. The last recommendation was to have a form based Code. She expressed the Boynton Beach Code is extremely difficult to navigate and moving to a form based Code would eliminate some confusion. In response to board questions, Dr. Delaney indicated the CRA has overspent on land and would need to buy down the land to make it financially feasible to develop. Dr. Delaney suggested selling the land at discount and clarified only raw numbers were used in her analysis regarding public spaces or other facilities. The TIF monies, in the presentation, did not include current projects, and were developed conservatively just for the HOB district. The figures represented 3% appreciation and all units were calculated as being owner occupied with a homestead exemption, which Dr. Delaney expressed they don't believe the market will bring. She indicated her thoughts were the market would bring rentals that would not have the exemption and would appreciate at a faster rate. They used very low quantities of retail (50,000 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 sf for the 10 and 20 du/acre areas, and 100,000 sf for the 30 and 40 du/acre) and very long absorption timeframes because there is not a strong market for retail. Dr. Delaney advised using a two-story minimum profile on MLK would act as a better gateway because it needs greater density to hold the street. The retail market was reviewed to determine what type of retail would be appropriate. Fifty thousand square feet of retail would take four to eight years to absorb on MLK at 10/20 du/acre. There is not a strong market for new retail but neighborhood retail makes sense. The CRA must participate as an agency to get development to take place. The CRA should assemble the land and discount it back to the developer so the community can be redeveloped back to the community and it will take a lot of money besides what has already been spent. Dr. Delaney explained some portions of the CRA may not require as much assistance as other areas of the CRA. There are TIF generators and TIF absorbers. There was not enough data to analyze infrastructure, although she did speak with the Utilities Department. Ideally there will be a 20 to 40 year generator, so the CRA would make strategic investments to act as catalysts to generate good development occurring around the downtown areas. There was discussion among the board members that the CRA received the tools and now is the time to take action. It was further discussed this was a major first step to put together something the entire community can embrace. Both sides of the community would need to give and take, and partnerships need to be put together. This is a great opportunity for Boynton Beach to shine. It was noted infrastructure needs to fit in and what type of infrastructure is needed will influence development. As the CRA moves forward, it was recommended a focus group from the community needs to step forward. The focus group would need to consistently and earnestly come before the CRA and indicate what they want to happen which would be forwarded to the City Commission. All parties would need to be on the same page and there are measures that can be undertaken that will make the job a realization. Chair Tillman thanked the Treasure Coast and Metrostudy for their presentation. B. Consideration of Amending the Homebuyers Assistance Program to include a Shared Equity Component Ms. Brooks reported the board approved the Homebuyers Assistance Program for prospective homebuyers within the CRA area, which provides gap financing. She explained the board had made inquiry about equity sharing. Ms. Brooks reported she met with Octavia Sherrod, Community Improvement Director, and developed a proposal where individuals could share in equity. The program would have lower equity during the first five years and increase as the homeowner remained in the home. In some instances, depending on the income of the family, the public subsidy could be quite high, up to $125,000. This would permit wealth building, assist with neighborhood sustainability and encourage longer-term home ownership. It would also protect against the homeowner receiving large windfalls upon sale. Ms. Brooks recommended approval. She explained the last bond that was passed contained a line item of $3M for the program. There is $1 M designated as a pilot program. The program already approved allows for up to $50,000 in assistance. The amount of the difference between the housing prices in the CRA area and the recipient's income, constitutes the gap that needs to be filled. Up to $75,000 has not been enough to close that gap, and these individuals qualify for a market mortgage. 9 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 Mr. Reardon explained the bond taken out has an 18-month sunset. If the funds are not expended, they must be returned to debt service or to another project. A marketing program will be prepared for the CRA program. Motion A motion was made by Vice Chair Norem to approve the program. Mr. Myott seconded the motion that unanimously passed. C. Discussion and Recommendations for Approval - Direct Incentive Funding Agreement Ms. Bright reviewed the item and explained she was looking for additional comments and direction from the board. The important issue is the incentive now is not guaranteed and each project must stand-alone and receive board approval. The Direct Incentive Program was separated into the affordable housing incentive and the public annuities program. The scoring portion was removed to allow for board flexibility to determine projects being more or less desirable, depending upon the area in the districts. The program also eliminates the developer being forced to back into the program to secure the incentive. The reporting requirement in the previous incentive package was not pro forma and the agreement would require greater accountability from the developer as it moves forward with the project. The TIF flexibility is changed by not capping it at 45%, and allows the board more flexibility. Affordable housing developers were given the option of either developing units within their projects, or donating monies to the community land trust. Attorney Spillias clarified the numbers in the draft were put in place for discussion purposes only and would be adjusted as the CRA's policies are promulgated. The board expressed the documents can establish some standards and could be reviewed on a case-by-case basis. The board liked the flexibility of the agreement and it was suggested having standards and guidelines in place would avoid the appearance of unfairness. Motion Vice Chair Norem moved to authorize staff to finalize the document to be brought back to the board next month. Ms. Horenburger seconded the motion that unanimously passed. D. Parking Discussion Mr. Myott declared a Conflict of Interest and filed Form 8B, which is attached to the original minutes on file at the Office of the City Clerk. Ms. Brooks indicated staff was directed to review parking concepts used with different projects. Staff is looking for direction in identifying an area for public parking containing about 400 spaces. Parking construction costs, exclusive of land, would be about $35,000. The board discussed taking a broad approach on the issue and suggested determining how many spaces are actually needed in the corridor area. The parking plan needs to be a broad comprehensive plan, which may need an authority. It was recommended looking at the cost and what revenues would be yielded by building the spaces. It was noted the possibility of a $2 fee on rental cars passed the legislature last week with indications being the Governor will sign the bill into law. The Regional Transportation Authority (RT A) board was looking at a local 10 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 government match to assist passenger service on the Florida East Coast Railway corridor in three counties. It was suggested the board look at identifying parcels in the Ocean Avenue/Boynton Beach Boulevard area to determine what properties are available, where, and what the costs were since parking is needed and the rail may increase that need. Continuing the process, and investigating a parking authority was suggested. Staff will come back with information on this item. It was noted it would take about two months to collect the information and staff was directed to look between Seacrest Boulevard and the Intracoastal, to the south of Ocean Avenue within a reasonable walking distance of the railway. Ms. Bright explained most members agreed that approximately 400 parking spaces would be sufficient. She requested confirmation that 400 spaces is the approximate number of spaces needed. There was consensus 400 spaces would be appropriate IX. New Business: A. Consideration of MLK Self-Assembly added to the ILA and Resolution for HOB Phase I Eminent Domain Process Ms. Brooks explained this item is being presented to the board due to legislative changes taking place regarding eminent domain. Staff was speaking with the self-assembly members to ensure the properties were in the eminent domain areas. The five properties are in the center of the Phase 1 HOB Plan, and it was necessary to make certain there would not be holes in the plan, the plan not be delayed and that the project will move forward. It would be difficult to move forward without the properties, however staff did not want to lose the potential to use eminent domain. The time frame for the properties will be to move from the board, then to the City Commission next Tuesday night, and the Offer Letter will be sent the next morning. The process can be withdrawn at any time up to the Order of Taking. The board discussed the process and timeline involved in eminent domain. The Letter of Intent was executed by the various property owners. There has been no concept project or feasibility analysis conducted. Mr. Finkelstein has indicated via letter, their group is ready to move forward. The Letter of Intent was signed post the date it was supposed to be submitted to the City Commission. The letter, signed by all parties in the self-assembly group is ready for CRA Board signatures to be forwarded to the City Commission. The eminent domain action needs to remain separate. The properties in question are non-contiguous properties and if a participant pulled out, it would be a serious problem. There was discussion on why other property owners whose properties were classified as eminent domain or owned by the CRA, did not have an opportunity to join the self-assembly group. Ms. Bright explained Mr. Finkelstein can provide letters of documentation that all property owners, at least on the south side, about two years ago were asked to join the self- assembly group. It was clarified the Letter of Intent discussed at the February 14th meeting, has been executed but missed the City Commission deadline. However, the eminent domain, or Requests for Proposals (RFP's) will still move forward. There is a 50% chance the self-assembly group will come before the board with a concept. There are no sales contracts, and not all Letters of Intent materialize; however, there would be the backup of using the eminent domain. 11 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 Kurt Bressner, City Manager, was present and indicated the City Commission supported the notion of moving forward with the project. He indicated the City is a party to the transactions, and the properties are not contiguous. There would need to be land swaps or reconfiguration of property ownerships that the City is part of. He clarified the aforementioned was the basis for having the Letter of Intent go before the City Commission. He recommended moving forward with the letter. Motion A motion was made by Vice Chair Norem, seconded by Mr. DeMarco to move forward with the resolution as discussed. A vote was taken and unanimously carried. B. Consideration of Draft RFP Solicitation for HOB Phase I Ms. Brooks explained this item was drafted with the idea of not losing time and having information ready, if this avenue needed to be utilized. It requests proposals be submitted to develop the site on the east side of Seacrest, which is approximately six acres. The proposal will request the developers give them an appropriate cost for the property, and when the pro forma is complete, they will know what subsidy or land write-down would be needed. It was noted the Request For Proposals (RFPs) may not need to be released if good things happen fast with the self-assembly group. Attorney Spillias explained there is a proVISion that needs to be added which is the CRA disclaimer which indicates the CRA has the right to reject all proposals, in the event the proposals are not satisfactory. This provision adds flexibility and protects the board. At the moment, the self-assembly group is at the 90-day mark and there has been no formal financial appropriation for the CRA to bear the cost of drafting the Development Partnership Agreement. The self-assembly group has not identified their finances; however, Mr. Finkelstein indicated they could front the funds. The board discussed its previous action where the CRA authorized staff to enter into an agreement after the self-assembly group had conducted a feasibility study, not more than 90 days later, determining the financial viability of the CRA and City working with the self-assembly group to provide a redevelopment proposal for the HOB Phase I Plan. Ms. Bright explained the Treasure Coast feasibility study was the document that was going to be the feasibility analysis. That cost was borne by the CRA. Ms. Carolyn Young, a member of the self-assembly group was present and indicated the group is ready, willing and able to develop Phase I. The group has been in a holding pattern waiting for CRA staff to develop a Joint Development Agreement. In February, it was discussed the project was going to be a joint venture to produce housing. and be a multi-use project in the HOB. From her perspective, she wants to proceed but was not certain what that next step would be. She requested direction, so the group can continue to make the project happen. Motion Vice Chair Norem moved that: 1. To continue working with the self-assembly group as they did with the letter of intent and go forward with that, 2. To go ahead and develop the proposed RFP in case things fall apart and 12 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 3. For the CRA and/or the City's attorney to work together to do the first draft of the Joint Development Agreement, with both sides to take care of their legal fees. Mr. DeMarco seconded the motion. The need to include the incentives going to the self-assembly group in the RFP was discussed. Ms. Brooks explained the RFP instead offers a price for land to make their project profitable and the developer will have to explain their rationale for the number. Ms. Brooks indicated it would be significantly less than what they paid for the land and that incentive is built in to the RFP process. Attorney Spillias explained, if the RFP process was used, specific incentives would not need to be included in the RFP, rather what is negotiated would be contained in the Joint Development Agreement. It was noted that the self-assembly group may have paid little for the land because they may have owned it for a long time and could offer a feasible development. It appeared it was an unfair playing field. Attorney Spillias received clarification that for the RFP, staff would add in any additional boilerplate or deadline type language in the document. Commissioner Ensler explained prior to this item, the CRA agreed to go forward with eminent domain of all remaining properties in Phase I. That would allow the CRA and the Commission, where approvals are needed, to go forward with the entire project with one developer without interference from someone who did not own property. He questioned why, since there is total control over Phase I, would the CRA not want to have competition. Other board members supported Commissioner Ensler's thoughts in order to receive the best quality product. It was noted Phase II was done the same way and the CRA voted to work with the self-assembly group. Having the additional protection of the RFP was agreed upon. Tom Balf, representing Intown Development Group, Inc. indicated his group is very interested in developing Phase I and is the only entity to come forward with a specific proposal. He indicated they are prepared to come forward with $4M to fund the acquisition of Phase I,. and expressed his belief this entity is the only one that can pull off this project and would like to be included on the playing field. Vote The Secretary repeated the motion and called the roll. Motion passed 5-1 with Mr. Sims dissenting. C. Consideration of Contract with Culpepper & Turpening, Inc. for CRA TIF Analysis and Forecasting Robert Reardon, CRA Assistant Director explained the need for the analysis was determined during a discussion between Julie Turner, from RBC Dain Rauscher, their financial advisor, and Ms. Bright to concretely forecast what the TIF revenues would look like for the next ten years. He suggested, in view of the emphasis on the TIF revenues, obtaining a professional to make the forecast. The board discussed having an accounting firm conduct the analysis, and inquired why the proposal names the service being provided as providing redevelopment consultation. Mr. Reardon explained the service is to forecast the current projects from an engineering point of 13 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 view as far as a timeline for construction. The job would be to gather all the information on all the projects and the ones coming up in the future. The board inquired whether CRA staff could conduct the analysis. Mr. Reardon expressed he is not a TIF expert and he did not feel comfortable guaranteeing revenues. It was also noted the term of the data is good for approximately three years. Ms. Bright explained on a prior project TIF revenues were estimated to be about $770M. Motion A motion was made by Vice Chair Norem to approve the contract with Culpepper and Turpening. Mr. Myott seconded the motion that unanimously passed. D. Six-month CRA Plan Last week, the City Commission gave the CRA direction to bring back a six month CRA Remedial Plan. Ms. Bright explained a draft was included in the board packets and Dr. Willis was present to review the item, a copy of which is attached to the original minutes. The document contained her findings and recommendations based on her analysis of the CRA and was to improve Understanding and Implementation of the CRA Policy and Directives, and Governance and communication between the CRA Board and staff. There were several recommendations made. Vice Chair Norem left the dias at 9:47 p.m. Vice Chair Norem returned to the dias at 9:52 p.m. Ms. Bright explained the purpose of the document is to realign staff for a first line of communication. Attorney Spillias recommended a motion be made to receive and file the report. The suggestions regarding the Rules of Governance will be further incorporated. Any specific actions staff should take will be placed on next month's agenda. Motion A motion was made by Vice Chair Norem to receive and file the report. Ms. Horenburger seconded the motion that unanimously passed. E. League of Cities Gala Dinner Dance & Installation Ms. Bright announced Vice Mayor McKoy is being installed as President of the Florida League of Cities. The CRA was asked to sponsor a table of 10 for this event. Motion A motion was made by Ms. Horenburger to sponsor a table for the event. Mr. Myott seconded the motion that unanimously passed. X. Future Project Preview Town Center at Waterfront Park and Ocean Point Tower Ms. Bright indicated she asked this developer to reschedule their presentation. XI. Comments by Board Members 14 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 Ms. Horenburger announced she was in Tallahassee and learned the CRA does not have a registered lobbyist. The City Manager indicated Mr. Ballard's firm is the City's lobbyist and is being charged with working with the eminent domain issue. Years ago, the CRA was asked to share in the cost of a lobbyist, but it appeared that did not take place this year. Ms. Horenburger suggested if the CRA is paying for a lobbyist, they should be registered as the eRA's lobbyist, or have a small separate add-on contract. Ms. Horenburger gave an update on eminent domain amendments and indicated it appears the end of eminent domain is near. Mr. Sims commented in reading the CRA materials, he found it refreshing the CRA is taking measures to establish rules and increase accountability. He noted training is continuous and encouraged training components be continuous. He indicated it would be beneficial to gain a perspective of what staff does on a day to day basis and elaborated it would assist him in his behavior when interfacing with the director and staff. XII. Comments by Board Attorney Attorney Spillias reported he has met with the City's HR Director and the City Attorney regarding an initial draft of an interlocal agreement to provide HR Services to the CRA. Also the Rules of Governance were discussed and it was noted, no matter what rules are in place, the rules are only as good as people's willingness to follow them or have enforcement mechanisms for someone to follow them. Enforcement comes from the City. The City Attorney is cognizant of the CRA issues and is moving forward and they are being addressed. He reported a board member notebook will be delivered to members in approximately a week. He requested the members review the information and if there is anything else that would be helpful to members, the notebook could be supplemented accordingly. This could be addressed in a workshop that was previously discussed and should be held. XIII. Comments by Executive Director Ms. Bright requested clear direction from the board on the mechanism she should use when her authority is overridden and she receives staff complaints about board members dropping in and giving direction to staff. She explained she is taking back the authority given to her from board members who are unwilling to give her that authority. Attorney Spillias explained there is no enforcement mechanism in terms of board member discipline. The only mechanism available now is to direct the Executive Director to notify the board when she feels those types of activities are occurring. The notification can be verbal, memo, e-mails, or listed on the agenda under reports. The board discussed having a report go to the City Commission; however, it was noted the discussions are public record. Ms. Bright advised she and the Chairman met last week regarding a recommendation that had been preliminarily approved to be brought back to the board regarding Mr. Reardon, who is in a contract position. The Chairman explained he desired to focus on the management plan objectives and initiatives, and she explained to him that was part of the strategic plan. She was still unclear about the issue and pulled the item off the agenda. Mr. Reardon had been serving in an interim Assistant Director capacity for thirty days. Ms. Bright indicated Mr. Reardon wanted to be compensated. 15 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 Ms. Bright explained that because she was accused of micro-managing, Ms. Bright agreed the Chairman could speak with Mr. Reardon about the issue. She was out of the office when the discussion between Mr. Reardon and Chairman Tillman occurred, but it did not go well, and has created a divide in the office. She expressed she would have preferred the item stay on the agenda and let the Chairman explain why the item should be pulled. Ms. Bright elaborated she wants to be able to agree to disagree with the Chairman and that all members of the board have equal authority. She explained it was within her authority to bring the issue before the board at that time. Chairman Tillman explained the board was trying to establish governance procedures and there was a volatile climate. In terms of the salary increase, he indicated he thought it would not be fair or that it would be done correctly. He elaborated one individual's salary would go extraordinarily high and would have a negative impact on staff. Because of the Rules of Governance, and Management Based Objective (MBO) plan that would be tied to performance, he explained he believed those items should be presented first and could be made a model. He reported he had previously agreed the interim director should be made permanent assistant director, but the issue was, if an MBO was in place at the time the increase was given, it could be used as a model. He clarified that was his only contention. He offered an apology if he approached the matter inappropriately. Ms. Bright explained there is already was a pay plan in place, and because Mr. Reardon is a contract employee, the issue needed to be approved by the board. Attorney Spillias explained Ms. Bright could contact the board members individually if things are occurring that interfere with her ability to conduct her job, and there are mechanisms about having the conversations and/or having special meetings. Since the time the Rules of Governance were implemented, they specifically stated that she is responsible for hiring and firing staff. In that context, she had already appointed Mr. Reardon as assistant director and the board does not need to vote on the issue. With the compensation, when an individual moves into an interim position, after 30 days they receive the pay scale. Ms. Bright indicated she has the authority to promote and demote. The board discussed that staff falls under Ms. Bright's purview so long as she does not exceed the budget. Ms. Bright advised, going forward, she will issue a memo when instances arise where the delineation of duties has been breached. Ms. Bright announced a volunteer is needed from the CRA to serve as a representative on the Arts Commission. Ms. Horenburger volunteered. Ms. Bright reported she had been approached by some board members regarding enacting a resolution against a former director. Attorney Spillias indicated the board cannot issue a resolution retroactively. If the resolution was already in place, this could occur. The board discussed other governments have measures in place restricting former officials from working within the next two years. This item will be brought back to the board. On May 16th, Jeanne Heavilin, former CRA Chair will be receiving an award from the City Commission. It was further announced the downtown Visioning Workshop is moving forward. The City Commission is considering a late September/early October workshop. Ms. Bright will notify the City Commission of a possible scheduling conflict with the FRA (Florida Redevelopment Agency) event. 16 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 XIV. Comments by Staff XV. Future CRA Workshops: A. Savage Creatures Discussion - June 22,2006 at 6:00pm Holiday Inn Catalina, 1601 N. Congress Avenue, Boynton Beach Attorney Spillias explained the CRA has spent a great deal of time reviewing permitting issues for the Savage Creatures concept. The CRA will be making a presentation on the legal and practical issues that would be involved, possible costs and a strategy which can be implemented should the CRA choose to move forward. He noted it was important to have all the information presented before any decision is made. This is a major project on the Intracoastal and there are significant environmental challenges involved. XVI. Adjournment Motion There being no further business, a motion was made by Mr. Myott and seconded by Mr. DeMarco to adjourn the meeting. The motion unanimously passed. Meeting adjourned at 10:40 p.m. Respectfully submitted, ~ ChMfle- fY.l~tm/l1 Catherine C rry-Guberman Recording Secretary (051006) 17 Summary Report for Project To Improve Understanding and Implementation of CRA Policy and Directives, Governance and Communication Between CRA Board and CRA Staff Submitted by L.J. CRAIG & Associates, Inc. Management & Organizational Consultants May 9th, 2006 TABLE OF CONTENTS TOPIC PAGE # I. Cover Letter 3-4 II. Executive Summarv 5-8 9-35 III. Findinqs and Recommendations A. Norms, Attitudes and Motivations of Organization Members 9-13 Recommendations B. Affects of the Distribution of Power and Status with CRA and 14-17 Positive and Negative Effects Recommendations C. Vision, Mission and Goals of Organization 1 8-19 Recommendations Prooosed New Oraanizational Chart D. Biggest Macro Concerns About the Operation and 20-24 Administration of the CRA, Board Meetings and Staff Interaction with Board Recommendations E. Communication Process Between CRA Board and Staff 25-28 Recommendations F. Rules of Governance 29-30 Recommendations G. Suggestions for Improving Governance of CRA Board 31-33 and Communication between CRA Board and Staff Recommendations Additional Comments 34-35 IV. Appendix 36-37 A. Interview Questions B. Bovnton CRA Aqenda Item Request Form - Mav 4. 2006 No oaqe # 2 L.J. CRAIG & ASSOCIATES, INC. Management and Organizational Consultants Designers of "People Management" Systems May 9th, 2006 Lisa Bright, Executive Director CRA of Boynton Beach 639 E. Ocean Avenue, Ste. 103 Boynton Beach, FL 33435 Dear Ms. Bright, Board Members and Mr. Spillias: The completed report is submitted for your review and information. It includes an Executive Summary, Findings, Comments and Recommendations and, the Interview Questions. A formal presentation will be made to you and other individuals, on Tuesday, May 9th. Thank you for the opportunity to provide consulting services to the CRA Board and CRA. It is very admirable that you have all been so willing to open yourself up and your organization to feedback from the Board members, your employees and the Legal Counsel to the Board. It is obvious that you want to make positive changes in the organization. Overall, everyone was very happy that this process was occurring and are looking forward to moving ahead in a positive way. I want you to understand that my role is not to cover up or hide problems that have been presented by the CRA staff and stakeholders during their one-on-one interviews with me. My role is to identify problems and issues that have had either a positive or negative effect on the efficient and effective operation of the CRA. I anticipate that if you resolve the internal strife and prevent any further scandals (recent newspaper articles) that the City of Boynton Beach Commission will not dissolve the organization. Although some of the comments are critical, you need to understand that the Board members, employees and Legal Counsel were using the interview process as an opportunity to vent and be heard. This is very common in all organizations. Obtaining stakeholders' opinions about issues that affecttheirwork place is a common Organizational Development intervention strategy. Also, the questions were very specific so I was able to obtain very specific data. I know that you all really appreciated being interviewed by an outside consultant concerning the eRA Board and CRA staff, and I believe changes and improvements can be made. However, change will not be successful if there continues to be dissension. " -' Phone: (561) 750-8669 www.ljcraig.comlcwillis@ljcraig.com P.O. Box # 1628 Boca Raton, FL 33429-1628 Fax (561) 391-5077 The many dangers of leading organizations are addressed in detail in Ronald A. Heifetz and Marty Linsky's book, Leadership on the Line: Staying Alive through the Dangers of Leading. Heifetz discusses dealing with management and human resource problems which include discourse and dissension in an organization. So the leaders, which includes the Executive Director of the CRA, all Board Members and the Legal Counsel, must be willing to listen to what each other has to say and then have the personal courage and strength to make positive changes. Doing this can also be dangerous as it is so eloquently stated in the book. You are all leaders, so this is highly recommended book which you should all read. Please review and consider all of this feedback, and my recommendations as a developmental opportunity the CRA. On Saturday, May, 6, 2006 an editorial was written about the CRA. I agree whole heartedly with the final statements: " The CRA is on notice that it cannot afford any more internal strife. Its mission is too important and the obstacles ahead are big enough on their own." "Bottom line: The CRA must use its second chance and keep its act together." (Sun Sentinel, p. 16A, Saturday, May 6, 2006). Sin,elY, ... i , J . J ; ~Cl VV~ Dr. Linsey C. Willis, SPHR President 4 EXECUTIVE SUMMARY An organizational audit of the Community Redevelopment Agency (CRA) of Boynton Beach Florida was conducted by Dr. Linsey C. Willis, SPHR, President of L.J. Craig & Associates, Inc., a management and organizational consulting firm. Interviews were conducted during the weeks of April 24 and the first two weeks of May 2006. Nine (9) employees, seven (7) stakeholders (i.e., Board Members) and the Board Attorney were interviewed in small group meetings or private meetings by Dr. Willis, each for up to one (1) hours. The following individuals (employees, Board members and Legal Counsel) were interviewed: 1. Henderson Tillman, Chairman, CRA Board 2 Stormen Normet, Co-Chairman, CRA Board 3. Marie Horenburger, Board Member 4. Alex DeMarco, Board Member 5. Steve Myott, Board Member 6. Jean Heavilin, Board Member 7. Lisa Bright, Executive Director, CRA 8. Robert Reardon, Interim Assistant Director CRA 9. Phyllis Zitcer, Executive Assistant 10. Susan Harris, Finance Assistant 11. Vivian Brooks, Planning Director 12. Vince Johnson, Planning and Development Manager 13. Rosalind Murray, Economic Development Director 14. Margee Apelsperger, Marketing and Communications Manager 15. Stacy Gallup, Administrative Assistant 16. Ken Spillias, Legal Counsel Each individual was provided with the newly drafted Boynton Beach Community RedevelopmentAgency (CRA) Rules of Governance and the eRA Office Policy Directives, and were asked to read the information prior to the interview. All responded to a standardized questionnaire (see the appendix) The interviews took less than twenty (20) hours to complete. The interview data was reviewed and included comments made by the interviewees. The data was categorized in terms on general themes; i.e., board interference, communication, board training etc. The general themes formed the basis for the 5 recommendations. This report outlines the issues raised by staff and the other stakeholders many of which were repeated by more than one person. The report also outlines specific recommendations for resolving the problems and improving the operation of the CRA, particularly in terms of Board Governance and communication between the Board of Directors and CRA staff. Many voiced the same opinions in certain areas, so in order to shorten the report and not be repetitious, some of the opinion statements were consolidated into one global statement about a particular issue. Based on the interviews several issues emerged and are listed below as either problems or areas in need of improvement. Further detail on the following is outlined in the Findings and Recommendations section of this report. Problems . Continuation of Board interference in eRA operations; e.g., undermining of Executive Director's authority and dictating to her how to manage and run the eRA . Amount of time Executive Director has to spend responding to some Board members regarding internal management of staff . Private discussions/conversations some Board members have had with staff regarding CRA issues brought to her attention after the fact . Political aspirations of one Board member . Board member role clarification . Some Board members appear to lack the experience and knowledge necessary to make meaningful, valid and relevant contributions to the operation of the CRA . Behavior of some Board members at monthly meetings . Disrespectful treatment of CRA staff by some Board members . Some Board members are already violating Rules of Governance . Continuance of staff intimidation by some Board members Areas in Need of Improvement . Length of monthly Board meetings . Written goals and objectives are needed; i.e., a Strategic Plan is needed . A performance appraisal system is needed which is linked to each employee's goals and objectives . Communication process between Board members and staff; i.e., communication not cleared through the Executive Director or inappropriate communication . Team building for eRA staff 6 . Role clarification for some CRA staff; e.g., role conflict . Board training . Trust between internal CRA staff and Board . Mission and vision of CRA needs further clarification . Further revisions needed to Rules of Governance In an Agenda Item dated May 4, 2006, at the City Commission meeting (see appendix), the CRA reported items in various stages of implementation. This reinforces that the administrative staff are working hard to make improvements. However, it should be noted that no change happens overnight, particularly culture change. Also, although a Strategic Plan can be prepared in less than six (6) months, all of the other improvements cannot happen overnight. Based on research, organizational change can take several years before measurable improvement is evident. Furthermore, it took many years of poor management, weak leadership, no internal controls, no strategic planning and inappropriate behavior on the part of some personnel and Board members to cause the CRA to become dysfunctional. No one should expect the recommended improvements to happen in six (6) months or less. Change and improvement starts at the top of any organization. As members of the Board of Directors, you are the top of the organization, so whatever you decide to do about the problems needs to unequivocal, and you all need to have a shared mission. In other words, you must be truly committed to change, and your decisions must be based on a majority vote, given that each Board member has one vote, and no Board Member has more power or authority than another Board member. Moreover, in order for change to take place people must be able to "check their egos" at the door, so to speak, and remember that the overall goal is to improve the City of Boynton Beach and not to further their careers or undermine what other people are doing. If Board members and some staff continue to undermine the Executive Director, and CRA staff do not work as a team, other scandals may occur which the media could identify. Then staff turnover will continue and completion of the work will stall. Then the City Commission may have no choice but to dissolve the CRA Board. This could set the City of Boynton Beach's development plans back and be a great embarrassment for the City and its citizens. Based on the work I have already completed for the CRA, my knowledge of its mission, some of the projects, and that it was created to be an independent governmental agency, to dissolve it would be a mistake. Furthermore, it would be a sad commentary on management and leadership if elected officials, who do are not the subject matter experts within a government agency, and do not perform the hard work, voted to dissolve another government agency because of power struggles, internal strife and ineffective leadership on the part of the Board of Directors. 7 In summary, the recommended changes need to take place so that the eRA remains an independent agency that will work toward the revitalization, beautification and economic viability of the City of Boynton Beach. 8 FINDINGS, COMMENTS AND RECOMMENDA liONS 1. What are the norms, attitudes and motivations of organization members based on your role with the CRA? This includes Board members, and staff. Are any of the above problematic and why? The following is a summary of the comments made by the staff, and stakeholders. "Some of the Board members is that they do not understand the issue of conflict and separation of power. They are go govern staff and are not to profit based on their position on board. Board members should state their conflict at every meeting up front so as not to sully the organization's character. The norms have been like the wild west, people were desperate to catch up with the development boom in south Florida. Board members do not ask enough of the tough questions; How will it impact our budget, does it compare to other CRAs, in the area and throughout south florida? Some have not done their due diligence." "Board members are not permitted to communicate outside of Board members with other Board members. Some board members have sent emails to other Board members." "It is important for staff to have a positive attitude with respect to the objectives. We want to get the most and best out of the staff that we can get. I am sure salary has a lot to do with it. If they want to increase their income, they should increase their effort. Anyone with a negative attitude has no place on the Board or the staff." "It is important that board members feel that they are free - there should not be a need for board members to criticize each other if they are doing their job - to improve the organization." "What is a problem is when the bearer of the news is criticized." "The problem is even with rules of governance there is no enforcement mechanism, there is no discipline mechanism. Only way to do this is to amend the enabling ordinance for the CRA. The ordinance the way it exists now, if City determines a Board member is inefficient they can start process to remove the Board member and they will have a hearing." "Our attorney is not strong, he is weak. He does not seem sure of what needs to be done. Board should reconsider his tenure. He is unclear. Attorney needs to ask people to step down from the dias whenever there is a conflict of interest." 9 "You need a means of enforcing them. What will ultimately happen is that if staff members continue to feel intimidated, abused and under appreciated, the high rate of turnover will continue. If city commission decides it has become a dysfunctional organization, they will decide to take the powers back." "On the part of the Board there are members who have a self interest for being on Board and using it to enhance careers. All members and staff agree that we want to see a better Boynton Beach and better development." "Some Board members are still not following the rules that were just drafted." "Board members not following new rules makes executive director's job very difficult. We have comments made to staff both publicly and behind their back. Board members are still giving orders to staff publicly and privately - still a problem. The Board clearly knows what they are not supposed to be doing and they are still doing it. Two Board members are still doing this. Others are scared and are trying to do everything by the book." "I'm not going to dwell on attitudes, but will discuss motivations. Motivation is what culture of the Board was founded on. CRA Board was premised on a professional person's in the development arena. Original Board was linked to real estate and architecture and the culture of Board was put in place. Actions should be seen as toward development. Were operating and there were no written rules of governance." "Lisa's style is very complementary to the staff's need and is very approachable and able to work out differences. With some new staff there is an adjustment period. It was very chaotic and is much better." "New staff members have to understand is that their job is to be part of a team and to not have their own agenda. This is what starts the trouble." "The norms of the staff seem pretty well motivated toward success. It was baptism by fire, all struggled under old administration. We feel a greater bond than with newer members. Some feel there is a two tiered status here." "One staff person has gone over Lisa's head several times and is not a team player." "Sunshine law requires Board members to communicate only at meetings. Some were sending memos to each other about memos. This is not allowed." "Some staff are still confused about their roles." 10 "A lot of complaining and nitpicking and do not like the workload or how office looks - all a real pity. We are here to get a job done. It is not about getting you to feel good about your cubicle. Like there, is a huge gulf between new staff and old staff." "Motivation does not appear to be focused on serving public or making the CRA - it is about what does it do for me and how does it further my career." "We do not have a real cognizant and clear plan we are working off of. We are pulled off in so many directions. Board still has not figured out the focus of their work. Could be related to prior director and his initiatives. A lot were in mid stream and you cannot drop them. Our resources are pulled. We really need to have a workshop where we set priorities." "We do not have a strategic plan that we work off of so we can allocate resources and personnel too. That is the climate of the city, reactionary, no planning ahead." "The attitude here among personnel, very intelligent people who have done this kind of work in similar fields, a lot of energy and they want to jump on in and there is not the focus and here is what you are going to do. A strategic plan for the next five years does not exist." "Board members should not just go in and talk to staff anytime without approval with Director. Board members should not meet with staff separately. Have worked with Board members and have been on Boards and Board members never went to staff directly. Communication should go through executive director first." "We need to have Board members who have skills that are pertinent to the goals of the organization Purpose of Board is listed under 163 State statutes." Recommendations for Improvement 1. All Board members must comply with the rules of Governance. If they are unable to do this, then action needs to be taken that will result in them complying or resigning from the Board. An example of not being in compliance is "No member of the CRA Board shall dictate the appointment to the office or employment by the Executive Director or in any manner interfere with the Executive Director or prevent him/her from exercising his/her own judgment in the appointment of employees in the administrative service." 2. Office visits made by Board members need to be scheduled in advance, or the Board member needs to inform staff why they need to meet with them prior to the 11 meeting. The Executive Director must be informed about the purpose of the meeting. If she chooses to attend, she may. However, in the meetings only business issues should be discussed. 3. A Diversity Trainer should be contracted with to provide training to all staff and Board members. This could be accomplished in one a one (1) day workshop. Dr. Willis can recommend a trainer with extensive experience and credentials in this area. This should prevent and derail the current perception that a racial divide has been created in the office and incited by the Board Chair and other individuals. 4. Design and implement a performance management system that is linked to the Strategic Plan. 5. Write and implement an enforcement mechanism in the Rules of Governance to deal with disciplining Board members who stray from their role. 6. Write a job description for the Board Chair which outlines his/her role and general duties and responsibilities. 7. Write job descriptions for all Board members. 8. Conduct Team Building training for all CRA staff and Board Members. Two separate sessions should be conducted (one for staff and one for Board Members) and then the entire group could be brought together and trained on other related issues. 9. Discipline staff who continue to go over the Executive Director's head to the Board or other City officials. This includes conversations conducted outside the office and relayed back to the Director, email messages forwarded to her and phone calls. This behavior is insubordinate and staff who undermine the Director are not team players and if they cannot work as a team, perhaps they should find work elsewhere. Even though the majority of staff are classified as professionals, and have years of experience and expertise, does not mean they can operate totally independent and without supervision and monitoring by the Executive Director. Empowering staff to do their jobs is important for productivity, morale and job satisfaction, but empowerment does not mean that staff are totally free to operate as they see fit without being held accountable for their actions and decisions. Keeping your boss informed is one of the basic principles of management. 10. Finalize and approve the job descriptions for eRA staff and clarify roles of all 12 staff. This pertains specifically to the Planning Director, Planning and Development Manager, and Economic Development Director. There is still confusion as to what the three positions are supposed to be doing. 11. All CRA Board members and staff need to focus on the overall broad goals of the CRA and the City versus furthering their own careers or misrepresenting their agendas. Working for any organization should not be about "what's in it for me" but how each organizational member can contribute and help the organization accomplish its mission. 12. All future Board members should be appointed based on their qualifications and experience; Le., they will be able to truly contribute to the mission of the CRA versus being on the Board for political or financial gain. 13. The City Commission should consider diversity in its selections to ensure all groups are represented, but an appointment should not be made solely on race, ethnic background or gender. 14. Provide a one (1) day Leadership Development program for all Board Members and staff. This training could be provided by Dr. Willis or she could recommend another consultant. This program will include teaching all CRA personnel what is, based on the research effective and ineffective leadership. 15. The Board Attorney must ask any and all Board members to recuse themselves at the meeting if they are involved in any item on the agenda. This will prevent a conflict of interest. He should also try to be more assertive during meetings when the situation warrants his input. 13 FINDINGS, COMMENTS AND RECOMMENDATIONS 2. What are the effects of the distribution of power and status within the eRA system (internal staff, Board Members, City administration etc.)? If you feel there are negative effects please provide specific examples to support your opinion. The following is a summary of the comments made by the staff, and stakeholders. "The Executive Director is in charge of supervising, hiring and firing staff. Board is a policy making Board." "Seven Board members - no one Board member has more power than others. All have one vote. Deference to chairman in context that something that occurs before meetings. Executive Director can get with the Chairman first." "Lack of accountability. Another problem when Board members interfere is asking staff to implement Board policy or their personal agenda or what they want the Board policy to be." "Structure is set up in such way that shouting matches should not occur between a staff person and Chairman and staff. One thing that Board members need to keep in mind and respect is that the people who have been hired have a certain level of expertise in those areas." "Certain people are not happy with what they are doing and are not getting projects assigned to them by Director on time. Internal power struggles going on." "Has heard staff say they feel they are being underutilized out in the open." "Biggest thing I see is the Board members not being clear as to what our role is. We need a workshop on governance. How are we supposed to relate to staff? Tendency that Board members can demand anything from staff. We do not manage, we hire staff to do the work. We have a great staff, hopefully none of us have time to manage the staff. Let staff do the job. Their job is to provide us with information so we make policy decisions." "Each one of us is one of seven. Board interference is the biggest problem. We approved the initial policy. I do not know how we can enforce it. Yet, the same interference is still occurring. Legally, it does not appear that we can do something to a Board member - discipline that person. Do we need a procedure so we can take steps to discipline the person?" 14 "People are trying to position themselves. We need to move toward a team based organization. How can people be so concerned with power if they do not even know the scope of work or what the priorities are?" "Since he has become chair his involvement has increased. He could almost turn into another Barretta. Inappropriate comments made by Board members to staff after the fact- when a vendor already has a contract. Directed staff person to fire the consultant because the rate of pay was not fair. The comment made was, "The band is being under paid. "to pay the vendor more money. This is outside his authority. Wants to look good in front of other people." "The political power would be corrected if Board members had skills that related directly to the CRA. Stay away from political appointments. The leadership should have input regarding who gets on the Board. They need to have skills that relate to the overall mission of the Board." "We have a closed door policy, like you cannot intrude, you do not come together to plan and problem solve but to put out fires and criticize." "Impacts of work is 5 years or more down road. There is a pervasive feeling that if you know more than I know, I may not look good. The word on the street is that there are people here who are over their heads. I am not saying who they are referring to. But this is the word on the street." "Anyone on the Board should be involved in problem solving and directly address the issues brought before the Board. We each have monthly one-on-one meetings with the Director. We should be able to give input to her to make things work. Not just an appointment where you go through the motions. Chairman needs to provide better ideas and more ideas to work on problem solving." "Most staff are task oriented. The two that are inconsistent - Planning Director - and Economic Development Director." "We have to work at creating one cohesive team of people and stop blaming the past Director." "It behooved staff to line up behind executive director after a problem with former Board member. Not all people did that. Some of staff members from day one, have built into their schedules, family obligations. You make yourself so difficult to deal with than no one will deal with you." 15 "I just want to be here and help where I can help. Other then sometimes a general feeling of - that some people are here to further their career and work their way up ladder and - I do not trust some people - they say one thing and do something else." "We are not all on the same page." "Some staff make fun of rules - hear snide comments about the CRA" "It will be now clear that the Chair of the Board is really the leader of the Board and that is the person who will set the tone for all interaction and policy directives and Board. Members will either work within those directives or they will have to leave the Board. Do not see any issues or problems regarding distribution on power in organization." Recommendations for Improvement 1. Include Board Members in the Strategic Management training that is expected to Qe approved at the next meeting or conduct a separate training program for them. 2. The Executive Director needs to meet with each staff person and ensure that she/he fully understands his/her job duties. 3. Conduct a workshop for Board Members on Board governance, CRA internal policies, the Sunshine Law, FL statute 163, Parliamentary procedures and other topics. Before the workshop, the Legal Counsel and staff should prepare a Board Manual which will be part of the workshop material. 4. Staff who do not like that the Executive Director is "micro managing" them need to reread the Rules of Governance, and internal policies, and support her leadership style (which is for their own protection based on past and current problems) or find work elsewhere. 5. Board Members must stop berating staff in public and usurping their decisions in public. They must all try hard to treat staff with respect. Just because the past Director treated the staff as "glorified secretaries" does not mean this behavior can continue. They must also stop expecting staff to serve as their personal staff. 6. Staff must adjust to the changes in the organization and if they cannot adjust they need to find work elsewhere. Change is an ongoing process in public and private organizations all over the world. Employees that cannot handle or deal with change 16 and make their feelings known in a negative way, and do not work cooperatively to implement the change, cause the organization to be more dysfunctional. 7. The Board must also make a strong and concerted effort to work together to make the changes recommended and support the Executive Director. 8. The Executive Director should consider keeping her office door open at times. Having her door closed most of the time (even though she is on the phone much of the time and needs privacy) sends a signal to staff that she is unavailable. She should ensure staff that they are always welcome to meet with her and the door is closed only when she is engaged in conversations that all staff do not need to know about. In terms of her availability to staff, if she weren't spending so much time trying to get the Board problems under control she would be more available to them. 17 FINDINGS, COMMENTS AND RECOMMENDATIONS 3. What is the degree to which the vision, mission, and the goals of the organization are shared and understood by you, other Board members and CRA staff? Please explain. The following is a summary of the comments made by the staff, and stakeholders. "I think the vision and mission are shared, the ultimate goal of the organization - there is pretty much consensus regarding what they want to create. There is generally a common vision. " "Job is developing as we speak. Gradually the job is evolving and doing more work. Will have to work out something more definitive. Everybody is certainly aware of the goals of the CRA and hopefully we can get everyone on track with fixing the problems." "I am very clear on the mission, vision and goals of the organization. The Board allowed the former director to create the vision for them. It is the Board's mission. They serve on as a volunteer Board." "To professionalize the CRA and toward administrative policies and procedures and performance evaluations - so everyone would be treated fairly and equitably. In order to do this you need to put SOPS in place. The mission and goals will come in clear view. This situation (Beretta) has put the Board more in focus with protecting the employee. One of the major issues here is the commission - some members are talking about dissolving the Board - if not just to protect staff - iffor their own motivation. No one wants to be dissolved. Wants to see the linkages. Need serious MBOs." "Vision and mission statement is understood by me and everyone else. Director continually reiterates the vision and mission." "Do not know what our vision, mission and goals are. Do not really know. Not part of the macro issues. Deal with day to day. Will say that I think that the new people, we would like to have an orientation day or movie or some type of training on what the eRA does. The CRA for dummies - it would help us." "There is no strategic plan which would formalize the vision and mission. It would help the Board so they can respond to press questions. If the Board had a better handle of where 18 the agency is going, then they would let up on staff. Some times people are doing stuff that has nothing to do with their department and other times are doing things that are related to what they should be doing." "How can the Board measure staff and Lisa and point to successes when we do not have a strategic plan? We need to track what we do and measure what we do." "We need to do a lot of work in this area - focus, what the market's wants are and what the needs are. We need to run the CRA like a business. We have a market and a public that wants things done. Get away from the past Director and move on with a clean slate. Measurable goals and objectives and they are tied to the performance evaluation process. Run it like a business." Recommendations for Improvement 1. The Board should approve the contract that provides Strategic Management training and the development of a Strategic Planning document for the CRA. 2. Conduct another downtown visioning workshop with all important stakeholders. This should probably be done after the CRA Strategic Plan is complete or at least in draft form. 3. Each Board members should meet with the Executive Director and all CRA staff once a month in a group meeting to receive an update on their goals and objectives and to discuss other issues. 19 FINDINGS. COMMENTS AND RECOMMENDATIONS 4. What are your biggest (macro) concerns about the operation and administration of the CRA, Board meetings and staff interaction with the Board? The following is a summary of the comments made by the staff, and stakeholders. "My biggest concern is interference and Board members not being clear on how they are to relate to staff and how do we get that to happen? We need to be behind policy but then ignore it? This is a problem. In terms of meetings, I would like to see more respect between Board members, basic common courtesy, should apply to everyone. Not interrupt people in the meetings. When one or two constantly interrupt or override what you suggest." "I resent that Board members believe that what the public is saying is true. Our ultimate employer is the public. The Board should have confidence that the current staff would not try to screw someone over. People call up the Board and complain so when someone calls up a Board member, they assume it is true." "Problem when Board members tell executive director she or he cannot talk to someone from public that they do not like. I am concerned that one Board Member is bringing us race and creating confusion by speaking privately with staff." "A racial divide is being created in the office. Both new staff are being manipulated by Board Chairman and this causes confusion and undermines the Director." "Board members are not to give staff directions at public meetings and then have private conversations with staff and directing staff to do stuff where the Executive Director does not know what the direction was. Staff should not be expected to do bidding for a Board member." "Staff interpretation is that new staff person is tied closely to Board member." "I am concerned that we now have either 8 people on the payroll and am also concerned that almost everyone should be getting a raise. I want to feel comfortable enough that staff are doing what they are supposed to be doing." 20 The Assistant Director position needs to be advertised. Some skills are transferable but you never know if you are getting the best person who is experienced with CRAs of Florida." "My concern is the micro management. Staff are professional - but there is this feeling that staff are not trusted by the administration. For what reason. We should be working as a team and there are a lot of secrets. A lot of flaws could be dealt with in a team process." "Problem is that administration is worried that board members may be talking to staff. We should not be worried about Board member's communication styles." "We need to have an atmosphere of trust and collegial support." "No board member should criticize a staff person and no staff person should criticize a staff person. We need to extend courtesy to each other." "Also concerned about the financial reporting - that Board members are provided with all of the accurate information in order to make their decisions." "Executive Director cannot effectively supervise staff and hold them accountable when new staff members are given things to do by Board member - giving directions in private and then taking one assignment from one person and giving it to another. The Board member must have conversation with Executive Director." "Board member's job frole is not to direct flow of work or assign staff but this is still occurring." "Having policy in place and following - followed. Board meetings - staff interaction with Board, the connections change at meetings. Staff become your resident experts and have to speak on specific items that come up on agenda on behest of the chairman or executive director. Should not be filtered through the Executive Director in full public view." "I think that the administration of the eRA is doing a good job and Lisa is a strong manager and I feel good about Robert as her team mate. We always felt that we needed to have an Assistant Director. I think the planning staff, Vivian and Vince. They 21 need to know their job is." "We have to know their (staffs) solutions and recommendations. They are not there to satisfy what the Board wants. They need to recommend what is best for the city. They might work for the Board but they are still the planning experts." "Staff need authority and respect but also need to have the facts and expertise to back up their recommendations. They need to be more assertive. Board meetings are okay with me. I let my feelings be known. Board knows where Board members stand as this is the only time we can all be together. We need to air our concerns at the end of the meeting. So we do not talk about what we should talk about as it is late. I need to do better job of knowing Roberts Rules." "New policy covers the problem issues - cannot use resources of eRA to do private deals on the side. SOPs need to be followed and adhered to. Getting the Board to work together and work in the same direction. If there are conflicts of interest or conflicts, resolve them or resign from the Board." "The biggest concern I have is that as an all voluntary Board, the CRA Board does not give enough time to the matters presented at the monthly meetings. Some do not even read the reports." "I wish the Board was more on our side. Seems like it is us against them. Always thought that your manager or boss encouraged you and helped you to do your job to the best of your ability. How do they help us do our job to the best of our ability? They should be our champions vs. criticizing us for a typo or a problem with airfare. More time spent babysitting then working with them. Seems like they are more concerned with the title of the Board member then serving the public." "It concerns all of us that Lisa has to be so stressed in dealing with the Board. She is spending more time putting out Board member fires than working for the CRA and spending time with staff. There is only so much we can do that does not require her approval. Phyllis needs to be able to spend more time with Lisa. I want training on what our projects are," "Since the other Board member resigned, the Board members have backed Lisa up." 22 "People not being clear on what the Board expects us to be doing. We are working in a reactionary environment. Not being able to point to our successes and not being able to clearly define our goals and objectives and even from a marketing perspective. It is a little, there is a level of insecurity of where their future place is in the agency because we do not have a plan and you do not have concrete goals and objectives, you cannot really prove yourself, that is documentable." "If staff were meeting the goals, staff would feel better." "Having an in-service and an orientation session for Board members. If a Board member needs to have something, they need to go through the Board Chair and then on through the chain. If they want to add something, this needs to go through the Chair and to CRA - must all go back to the Strategic Planning Document." "Biggest concern is the Board needs to get back on track publicly and that any ethical issues and conflict of interest issues are eliminated and we get on track. Second that we get support from the City Commission. You read conflicting statements in the newspaper regarding whether or not we are doing a good job. I think the staff interaction with the Board has been clarified and it is very clear that everything has to funnel through the executive director and appropriately so." "We should not be spending so much money on the public trolley. Also concerned about all the consultants we use here. We have too much consulting work. We have consultants to the consultants. We have to stop this and I have asked for a report and want to know what we have spent on the consultants." "We should have a meeting just for the budget - we need to meet quarterly to go over and review the budget and have a real discussion until we can get a handle around it." "We need to set two standard meetings a month. This must be done. This would improve the communication processes and would allow for a more efficient flow of work." "We are so overly wrapped up with Board member problems that the mission and work of CRA will not be able to operate smoothly. Board Chairman's job is not to direct and appoint staff. I hope nothing happens to override making Boynton Beach better." 23 Recommendations for Improvement 1. eonduct annual In-Service training for all Board Members on FL statute 163, Ethics, and other related topics. 2. Develop a Board Orientation handbook. 3. Board members must not give staff directions that the Executive Director is not not aware of and has previously approved. 4. Board members need to address their concerns at the end of the monthly meeting. 5. Conduct two (2) separate Board meetings a month. The meeting dates should be standard. One should be to address development issues and the other to address internal issues etc. This will shorten the meeting times and then members will be more alert and focused. This will improve the communication processes and allow for a more efficient flow of work. Moreover, meeting twice a month will enable the Board and CRA staff to spend more time on certain issues. 6. Conduct quarterly budget review workshops for all Board members and staff so all may become more familiar with how and why the money is spent. 7. Consider paying Board members an annual salary of $10,000. The City Commissioners are paid $17,000 about. Unless there are legal reasons as to why they should not be paid, this should be considered. A salary will serve as a motivator and a way to ensure that Board members are more prepared at the meetings. 8. Conduct a half day or full day training session for all CRA Board members and staff on employment law which would include all related topics (e.g., Title VII of the 1964 Civil Rights Act, the CRA of 1991, sexual and other work place harassment and other related topics etc.). This should occur after the inter-local agreement with the City of Boynton Beach Human Resources Department is completed. Management staff and employees are legally entitled to know what their rights are under the state and federal laws. 9. Take a closer look at the amount of money that is spent on consultants. There is some concern that some of the eonsulting firms are hiring consultants. 24 FINDINGS. COMMENTS AND RECOMMENDATIONS 5. How do you perceive how efficient and effective the communication process is between CRA Board members and CRA staff? What improvements do you think can be made and why? The following is a summary of the comments made by the staff, and stakeholders. "Ultimate improvement is to enforce rules, Board members should not be interacting with staff to give orders, to tell them how to do their job - but only to get information. The executive director should deal with that and not have the Board member meet with staff. Can't hold executive director accountable if she is not given the authority to do her job." "If Board members continue to not follow rules, those Board members who are following the rules, they will eventually bring their concerns to the public, like happened before." "Sees something ugly in terms of race going on - is race a problem, is it a problem that a woman is the Director and two blacks are not the Director and Assistant Director? eomments were made to both of them about what job they should have or that they should not be in their position." "I think the communication process is pretty good, others will disagree with me." "Do not see real problems accept, and put in governance policy - the whole issue with memos, anything coming from a Board member needs to go through executive director, a couple incidences where Board member sent the memo to the entire Board. Under Sunshine law we cannot respond. The memo needs to go through the Executive Director, and then she would let everyone know and then bring it to the Board in a meeting. It seems that most of it should come through her. Board members should not send emails out except through the Executive Director. Most communication in general needs to go through the Executive Director." "It is not efficient because the Board is not talking with one voice because individual Board members are putting individual demands on staff. Commissioners think that the quality of their Boards is adversely affecting their city. There is the intent and will to do good." 25 "We should try to utilize some of our events for the Board to interact with staff. One Board member meets with us every month all together. He gets to see us work as team and sees shared leadership. The Board member gets to ask questions etc." "When directives are clearly carried out in a clear link with Board policy. Continual updates of what policies are being laid out by executive director - those that have been successfully expedited by executive director as well as those that may need some adjustment." "When an email is sent out someone needs to check the language and spelling." 'The communication process among staff could be better. There is a lot of fear and intimidation used to communicate. There is a new directive - if you have a meeting and conversation - you have to let Lisa know. The micro managing, borders on paranoia." "The Board is over managing us - too much oversight on the part of one or more Board members. They need to step back and trust us. We provide monthly updates separate from the packets and provide them with daily or weekly press clips. Statement was true in the past that they did not know what was going on - but this is no longer true." "The monthly CRA Board meetings need to be reformatted - not a very efficient process for some meetings to last 5-6 hours. Board needs to be more cognizant of printed material they receive which will cut down on time spent at meetings. Board packet is way too big - compared to other CRAs." "Put Board member comments at end of the agenda. Material should come to Lisa and then she coordinates with Vivian or whomever. All information needs to be coordinated through her but it needs to be done quickly so it does not eat up Lisa's time coordinating communications between Board and staff." "All communication between staff and Board should be funneled through the Board. Do not copy all Board members. All should go through her and then she forwards it on to someone else. Board. Members by law are prohibited from speaking to each other except at a meeting. If request or information is funneled through Executive Director, then she can copy all Board members and then assign to appropriate staff." "Are they reading what we have prepared for them? They may be skimming over but I 26 do not believe they really comprehend what we are doing." "We inundate them with information so they do not get on their case. We are almost trying to win approval as there is not a lot of approval from them. If we show them how busy we are, they will approve us. A lot of quantity but how much quality? Are we getting anything done well?" "Many Board members do not know what a CRA actually does per state law. Biannual retreats - one major with Board only and then one with staff. Update meeting for progress on a strategic plan." "They need to read what we write." "I am uncomfortable that I cannot trust people from week to week here. We need to own up to what we feel, say and do - tell them to their face." "Do not put out directives if issue is with one person." Recommendations for Improvement 1. Board Members must not communicate with each other outside meetings or send all other members e-mail messages. Some Board members are still violating the FL government in the Sunshine law. 2. Board members must not communicate with CRA staff without the prior knowledge of the Executive Director. 3. Board members must not set up conflicts with office staff and Executive Director This is interference and violates the Rules of Governance. 4. The Executive Director should continue to meet with each Board member on a monthly or weekly basis. However, all other meetings should be scheduled in advance and Board members should not monopolize her time outside these meetings. 5. Board members must read the reports before the monthly meetings. If they cannot make the commitment to read the reports before the meeting in order to cast a valid vote, then they should consider resigning from the Board. It has been 27 apparent to many staff and other Board members that some Board members have no idea or understanding of what the issues are. 6. All email and other communication needs to be spell and grammar checked before sending it out. 28 FINDINGS. COMMENTS AND RECOMMENDATIONS 6. Are there any Rules of Governance for the CRA Board that you feel are: a. unclear and why? b. need further clarification and why? c. not being followed and why? d. problematic and why? The following is a summary of the comments made by the staff, and stakeholders. "Made pretty clear in there that Board members should not tell director who to hire and fire. Meetings and interaction is to be arranged by Director. You need to have line of authority - you do not want to shut Board members off from getting information. You don't want staff from being so afraid to speak to anyone due to Board members or the directOr." "Board member should be able to get the answer from the source. Let Director know and then be able to talk to a staff. To gather information only - not to tell staff person what to do and how to do it. If they do not like what the person does, they need to tell the executive director. And decide if it is something that needs Board member direction - if it is a policy issue." "Would like to see further clarification on the behavior of Board members. We need to remember that we represent the city. We are a very open city in that context. Not one Board member should have authority to represent or speak on behalf of the Board. Staff should represent the city, or Executive Director, not the Board. PR person should be the spokesperson." "Rules of governance should not get too specific. Still feel a governance workshop should be held for both Board and staff. We need 100% participation. Also if you have individuals that do not follow the governance rules, what do you do? How do you enforce the rules? Other biggest issue - is the interference of staff work." "City commission is finger pointing and blameful." "The fact that we are putting rules of governance in place is a huge step forward and 29 only time will tell whether or not it has been effective." "One section of 163 still not clear to me. Conflicts of interest (112) - he mentioned two words regarding behavior implications. I think the Rules of Governance needs an executive summary. We are just starting to follow. If there are problems we need a vehicle to make adjustments." Recommendations for Improvement 1. Conduct an Ethics training workshop for Board members and staff. 2. Have Ms. Apelsperger or the Public Relations vendor conduct Media training for the Board so they can all speak with one voice. They may also want to consider having a PR person speak to the media. In the past the media has received conflicting information about the CRA. 3. Regarding the internal CRA Office Policy Directives regarding staff reports and appointments, although the directives are viewed by some as micro management of staff, the staff need to understand that they were put place to protect them against Board interference and monopolization of their time, as well as to help them document their activities. On the other hand, if staff are completing their work, they should not view "keeping their boss informed" as micro management on her part. Moreover, if staff have nothing to hide regarding their conversations with Board members and the public then there should be no reason why they should feel intimidated or that the Executive Directior does not trust them. It is a common and accepted management practice to review staff work and to be kept informed by staff. Communication is a two- way process. 4. Conduct Time Management and Communication skills training for all staff and Communication Skills training for all Board members. 30 FINDINGS. COMMENTS AND RECOMMENDATIONS 7. Do you have any suggestions for improving the governance of the CRA Board, communications between the CRA staff, and the general management and operation of the CRA Board in terms of the member's duties and responsibilities? The following is a summary of the comments made by the staff, and stakeholders. "Have a workshop or retreat on these various issues. These workshops are public meetings. Have an open discussion at a theoretical level- to put members on notice regarding what they should or should not do. Putting together manual for all the rules and laws they must adhere to etc. Conflict of interest - so they will all have a personal resource to refer to. Staff need to deal with these issues in a formal way particularly if they are feeling intimidated." "Working out an inter-local agreement with the City HR department (regarding rights as an employee under state and federal law)." "Consistently remind people of what the proper process is. These are new rules - and if they are being violated right away - shows a lack of sincerity. Something so new - it will take time to remind people - role of the attorney." "One question is what politics might be at play in community for Board members to be over zealous to push agency in one direction etc. Could be a problem." "We can't end the politics but Board members must know that if their politics drive CRA toward one direction, political position may be weakened." "They don't get paid (the Board) and I believe it is power for some and if there is something behind it, they are doing their bid to help Boynton Beach. Staff are paid fairly and some are paid very well and need to focus on what they are being paid for." "Training and workshops. No interference. A good orientation for Board members should be provided as well as a refresher for Roberts Rules of Order. Parliamentary procedures." 31 "What are the duties of the Chairman between meetings and his relationship with Executive Director and CRA staff. Is the Chairman the chief spokesman for the CRA for media relations, clarifying in terms of the CRA. Role of chairman needs to be clarified. Having a common theme is true and needed but there will be some - who just disagree to disagree. What the chairman does in the interim between meetings in terms of how he addresses or responds to issues in public needs to be clarified. Does he just refer it back to the Executive Director. Does he respond to it for Board or does he refer it to the Executive Director to respond to for the Board?" "Board members should have skills directly related to the agency's work and that they should be well informed of what the agency is doing on a regular basis and provide regular input to agency problem solving and also, give input on how to look into future and keep the mission going and keep it going and look down the road and how we are to accomplish our mission even in tough times." "Two way communication. It all needs to stop at executive director - so she has a handle on the throttle of staff productivity. In the past, when a Board member intervened with a staff member, that staff member did not get other work done." "It would be nice if Board members treated us with respect that they treat any business or any people. We are so pressed for time, it would be nice if they showed us the courtesy and respect by calling advance and not have us take care of their personal travel. It kind of evolves into their personal travel at times." "Concern that former Board member is not really gone - only two blocks away. Fear that he may be involved in a project with the CRA and it starts all over again." Recommendations for Improvement 1. Finalize inter-local agreement with the City of Boynton Beach Human Resources Department which will provide CRA employees legal protection under the state and federal employment laws (i.e., Title VII of the Civil Rights Act of 1964, the CRA of 1991, the FMLA, the Age Discrimination in Employment Act etc.). 2. Put all Board members on notice that they will be dealt with accordingly if they do not comply with the Rules of Governance. 32 3. Further clarify all points in the Rules of Governance. 4. Create a performance appraisal document for the Executive Director to ensure that the CRA Board annually appraises his/her performance. 5. Change the wording under 9.C to reflect "employment" instead of appointment. 6. Change the wording under 9 D. It infers that the Board of Directors can closely supervise the Executive Director. Perhaps this wording is why the Chair is so involved with day to day activities, he may be confused by the wording. He may also be confused as to what his real role is. 7. Remove the words "closely scrutinizing" (9. D. line eleven) and revise to reflect overseeing all aspects of the CRA....." This word may be interpreted by some Board members that they can micro manage the Executive Director. Examples of micro management are: 1) taking job tasks away from one person and assigning to another; 2) directing staff to do something outside the knowledge of the Executive Director; and 3) questioning the qualifications and skills of staff who have already been hired. 8. Change the wording under 9. F. to include putting all notification "in writing whenever possible." 9. Follow Roberts Rules of Order at all Board meetings. Assign the Executive Director or Legal Counsel to be the Parliamentarian. 33 FINDINGS. COMMENTS AND RECOMMENDATIONS 8. Do you have any additional comments, and if so outline. The following is a summary of the comments made by the staff, and stakeholders. "Let's focus more on our statutory responsibilities - focus on five main projects. We have been very scattered and I do not think we have a shared vision. I am hopeful that the Board is taking the initiative to do the hard work." 'There are too many special events where we do not have something to celebrate. We should not spend money on stuff where we do not have the attendance. Board cannot pretend that they are like W.P.B. or Delray Beach. This will happen when we get the TIFF." "Looking forward to the report." "Other than what I said before, people need to focus why they are working here and why they are on the Board and stop veering off the path." "I am glad that we are doing this to make improvements and move forward." "We do not really have any teeth in terms of how to enforce if sops are broken. Investigate, document and deal with." "It should not be so formal and structured such that we are afraid to talk to one another as we are in such a small community. There should be no fear that we have said or done the wrong thing. There should be a level of trust in staff." "The agency is headed in a positive direction and am happy about the changes and the spirit of the staff is very strong and that is a very good sign. Ultimately, our community will benefit from it." " I feel very strongly about media training for the Board. An outside firm could provide the training. If momentarily it is out of the question, then the ehair, Executive Director and eo-ehair should be trained." 34 "We have a great team of people and a great Board. We are over the major hump of change. We are doing so good considering all of the adversity, challenges, questioning, etc." "We have done so much in the past six months and we need to be able to focus on the work." There no recommendations for improvement for this question. 35 APPENDIX 36 INTERVIEW QUESTIONS 1 . What are the norms, attitudes and motivations of organization members based on your role with the CRA? This includes Board members and staff. Are any of the above problematic and why? 2. What are the effects of the distribution of power and status within the CRA system (internal staff, Board Members, City administration etc.)? If you feel there are negative effects please provide specific examples to support your opinion. 3. What is the degree to which the vision, mission, and the goals of the organization are shared and understood by you, other Board members and CRA staff? Please explain. 4. What are your biggest (macro) concerns about the operation and administration of the CRA, Board meetings and staff interaction with the Board? 5. How do you perceive how efficient and effective the communication process is between CRA Board members and CRA staff? What improvements do you think can be made and why? 6. Are there any Rules of Governance for the CRA Board that you feel are: a. unclear and why? b. need further clarification and why? c. not being followed and why? d. problematic and why? 7. Do you have any suggestions for improving the governance of the CRA Board, communications between the CRA staff, and the general management and operation of the CRA Board in terms of the member's duties and responsibilities? 8. Do you have any additional comments and, if so, outline. 37 BOYNTON BEACH eRA AGENDA ITEM REQUEST FORM BOYNTON BEAcH Requested CRA Date Final Materials Must be Requested eRA Date Final Materials Must be Turned into Meetine. Dates Turned into CRA Office Meetine. Dates CRA Office 0 January 10, 2006 December 27, 2005 (Noon.) 0 July II, 2006 June 27, 2006 (Noon) 0 February 14,2006 January 31, 2006 (Noon) 0 August 8, 2006 July 25, 2006 (Noon) 0 March 14, 2006 February 28, 2006 (Noon) 0 September 12,2006 August 29, 2006 (Noon) UJ April I I, 2006 March 28, 2006 (Noon) 0 October 10, 2006 September 26, 2006(Noon) "' . May 9, 2006 April 25, 2006 (Noon) ill November 14,2006 October 31,2006 (Noon) 0 June 13,2006 May 25, 2006 (Noon) 0 December 12, 2006 November 28, 2006 (Noon) NATURE OF AGENDA ITEM . Consent Agenda o Director's Report o Old Business o New Business o Legal o Future Agenda Items o Other Item DATE: May 4,2006 SUBJECT SUMMARY PARAGRAPH: CRA Board 6-month Continuous Improvement Plan At the May 2, 2006 City Commission Meeting, the results of the "Discussion of the CRA" require the CRA Board to establish a strategic plan for the next six months governing performance standards of the agency. As a result of the last month's board direction to staff, the following items are in various stages of implementation: 1.) Conduct an HR Organizational Audit to evaluate board/staff interaction and communications. Interviews are complete and the executive summary should be ready for board review at the CRA Board meeting. The goal is to strengthen the Board's Rules of Governance as it relates to human resource practices of the agency. 2.) Attorney Spillias and Usa Bright met with Attorney Cherof and Sharyn Goebelt, City of Boynton Beach Human Resources Director to create an Interlocal Agreement to provide consulting HR services to the Agency. This document is in the development stages and brought to the board at a later date. 3.) As a result of the meeting with the City's representatives, it was recommended that the CRA create HR accountability through the staff work program. Ms. Bright met with Dr. Willis and will be realigning the scope of work under the Finance Assistant position to handle the grievance and/or formal complaint process under the direction of the Executive Director. 4.) The organization audit revealed the need for closer communication with City to apprise them of the work of the CRA. In order to restore confidence in the agency, a spokesperson should be designated to provide regular updates to the City Commission on the activities of the agency. RECOMMENDATION: Discuss and outline the 6-month strategic plan for the CRA Board. FISCAL IMPACTIFUNDING SOURCE: Negligible to none. AL TERNATIVE~: N~t ?evelop a strategy,'! CRASTAFF:" \~._;< \.. tA, l+ isa Bright, Executive Dire r T:\AGENDAS. CONSENT AGENDAS. MINUTES & MONTHLY REPORTS\Comple1ed Agenda Item Request Forms by Meeting\06 05 09 CRA Board Meeting\CRA Board 6-month ContinuOus Improvement Plan.doc