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Minutes 08-10-09 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD BUDGET MEETING HELD ON AUGUST 10, 2009, AT 6:00 P.M., IN THE PROGRAM ROOM, BOYNTON BEACH CITY LIBRARY, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Lisa Bright, Executive Director Woodrow Hay, Vice Chair Jim Cherof, City Attorney Jose Rodriguez Marlene Ross (arrived 6:33 p.m.) Ron Weiland I. Call to Order - Chairman Jerry Taylor The meeting was called to order at 6:00 p.m. II. Pledge to the Flag and Invocation Vice Chair Hay offered the invocation followed by the Pledge of Allegiance to the Flag. III. Budget Workshop Goals Lisa Bright , Executive Director, announced Community Redevelopment Agency staff met with each Board member prior to the meeting in order to have a positive discussion. She reported one item of great import was the fact that staff would not know the millage rate for the City and the County until after September 22, 2009. Due to the timing for the budget, if they did not receive policy direction and consensus on existing programs or new programs and projects, they could not finalize the budget. Chair Taylor emphasized it was important for the Board to have all concerns addressed. The Board would have to wait until after the City’s budget, which would not be final until after September 22nd. 1. Review of Budget Detail and Scenarios Susan Harris , Finance Director, explained the budget was designed to depict the General Fund, the Project Fund, Debt Service, and their associated details. There were also budget projections included with the different millage rates and their associated scenarios under the rates. Staff would also discuss Optional Projects. Ms. Harris explained the charts were formatted the same way for each department. The proposed budgets were based on the 7.3 millage rate. Any increase or decrease in the line items was indicated by amount and percent. A General Fund Overview was made. This budget had an overall reduction of 22%. Staff approached vendors apprising them of the substantial reduction of revenues regardless of the 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 millage rate and renegotiated the contracts. Rent for the current office was renegotiated down. Property and cleaning vendors reduced their rates. The marina rates were not reduced. The management company, along with Mike Simon, Property Manager, was assisting in the marina development by overseeing the marina construction. Further decreases were realized in travel, membership and dues; and equipment and costs. The marina operations reflected a reduction in the budget from last year. This was due to a decrease in sales volume in terms of both dollars and gallons of gas sold. Gasoline prices were very high last spring until late fall. Boating enthusiasts stopped using their boats as much or reduced their fuel consumption. Accordingly, staff did not purchase as much gas. Ms. Harris preferred to be conservative in their budget and indicated staff may have to return to the Board with a budget amendment in the event they need to purchase more fuel. It was noted a change in millage rate would not affect the marina budget and, in effect, the revenues equals the expense, so there was no real savings. Ms. Harris explained if the marina were factored out of the Community Redevelopment Agency budget, there would be a 13% savings. Discussion also turned to an increase of 194% for the Community Redevelopment Agency Board. Ms. Harris explained that increase was because the Board would be creating a new Board with seven members. Chair Taylor requested discussing this item later in the meeting as he felt a five-member Board would be better than a seven-member Board. The increase encompassed contractual expenses. Nothing was budgeted for the electronic agenda or computers in the current year. Only $15,000 was budgeted for next year. Staff had an interlocal agreement with the City regarding the item and would have to pay the amount to the City regardless of whether they had a new Board or not. They would also need to purchase computers for the new Board members. It was noted a larger percentage of the expense would still apply if there were a five-member Board. Internet connection fees for the laptops were not included. In total, there was about a $5,000 to $6,000 difference in the budget from a five- member Board to a seven-member Board. Funds were budgeted for the members as miscellaneous costs for community support items. The amount was about $1,000 per member; however, any monies given had to be voted on by the full Board and the funds were not split amongst the Board members. The funds were not discretionary funds. In the past, there was a $15,000 pool of monies for the Board to use collectively. This year, the amount was reduced to $7,000. The members discussed the delivery of board meeting materials and a suggestion was made members should pick up their meeting materials. Some members preferred to do so at City Hall, or pick them up on the weekend due to work schedules; however, keys would be needed if the members picked up the materials at the Community Redevelopment Agency office. It was noted the delivery of the materials may be able to be discontinued due to the advent of the electronic agenda and the delivery services could be used on an as-needed basis. It was anticipated many of the new Board members would work full time. The total for delivery services in the entire budget was $10,600, which was less than the $11,100. Ms. Harris clarified delivery services encompassed delivery of items to elected officials, for auditing services and auditing requirements the use of FedEx, registered letters and the like. Other items requiring delivery services had to do with contracts and recording various items. If needed, the amount could be adjusted during the year. It was mentioned if the budget were not changed, behaviors would not change. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 The Executive Department budget had an overall reduction of 3% and encompassed the Executive Director and the Administrative Services Manager. Vacant positions were omitted from the budget and only nine positions were included. Equipment costs were $1,000 and were for items like computers, if a projector broke and similar type items. The Finance Department budget had a reduction of 1%. Each budget would be less this year because they would not be travelling to conferences. In order to get the continuing education credits staff needs for certification, they budgeted career development by department. There was discussion about cell phones. Staff was on the same plan. Last year all staff members had cell phones through the IT Department. This year, the expenses were broken down by department. Overall, cell phone expenses dropped by 9% in all departments. The difference this year was one staff member did not want to take advantage of the $60 for the cell phone and some staff members had their plans through the government-preferred plan. That change resulted in a savings of about $100 per month. The Planning budget increased overall by 1% due to career development items. Staff was asked if there was any opportunity for reductions in membership dues, subscriptions or anything else. Ms. Harris explained they cut back last year and had an overall reduction in the general fund budget of 17% and the department budgets were already lean. Last year, salary increases were not budgeted as well. The Marketing and Business Development budgets were reviewed. The Marketing and Special Events positions share an assistant to help them with their duties. The funds for videoing downtown businesses were taken from the Professional Services budget. It was a staff driven event performed by staff using Community Redevelopment Agency paid for equipment. The photography and video amount in this department budget was for Twitter; video for You Tube, social media, podcasts and a new Community Redevelopment Agency updated marketing video. The Website videos were paid for under the Professional Services Budget. Ms. Bright noted the Community Redevelopment Agency follows best practices. While there was an increase in the budget, it was pointed out that due to staff’s marketing efforts they were considered one of the three top-rated agencies in the state. It was important they be current with information in electronic form. The Special Events budget increased by 1%. There was discussion about the fireworks display. After brief discussion, it was agreed that event would be addressed later in the budget. The budget for Insurances reflected a decrease of 12%. The reduction was due to the Community Redevelopment Agency no longer having to insure the Old High School. The Professional Services budget was reduced by 22%. The Professional Services Legal Fees were split between the General Fund for general administrative matters and the Project Fund for items that were project specific. The amount for legal services was reduced from $200,000 to $100,000 in the General Fund for next year. In total there was $100,000 from the General Fund and $75,000 in the Legal Fund. The City Staff Services line item was increased to $15,000 due to Interlocal Agreements with the City for Human Resource services. Personnel Services was for temporary help and that line item was reduced. There was discussion if an employee was out on leave, the employee was out due to a policy and there would be a salary savings. Ms. Harris responded there was no maternity policy. The 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 employee uses their accrued vacation, sick and comp time. Once that time is used, the leave is unpaid. Discussion ensued that unpaid salary monies could be used for temporary purposes and there could be a savings realized, but it was also argued it was double dipping. Ms. Harris explained staff budgets the funds because there are times when they need temporary help. There was no short-term disability benefit for staff and sometimes staff cannot wait until an employee returned to work. A person was needed in the office that would need to be paid. If staff reduced the amount, they could always return to the Board for additional funding. The amount was decreased $15,000. Attorney Cherof pointed out Legal expenses were reduced last year and this year. In a recession, the Community Redevelopment Agency was doing less and would have fewer projects underway with fewer legal tasks to correspond with those activities. Additionally, staff stepped up and assumed some tasks, thereby reducing the reliance on legal. Attorney Cherof also had the benefit of access to documentation for research, which an independent attorney would not have. He pointed out the Board should be cognizant of that. Comments were received it was hoped the firm would stay on and that on the City Commission level, fees were kept to a minimum. Comments were also received the Board should not review the budget only on its decrease in dollars from the prior year. It should be reviewed according to its merits in the current year, as budgets from prior years may not have been correct. Personnel budgets have headcounts and items shift. If action was needed the issue could be brought to the Board. It was suggested if staff wanted a tight budget, then they should not have contingencies built in, as the contingencies would be used. There was consensus that personnel services should remain as was proposed at $25,000. The Community Redevelopment Agency marketing website services line item was discussed. The amount budgeted included the videotaping of the meetings, website upgrades, the annual report which was used as a marketing tool, and the downtown marketing video was included in the line item, which is done largely by CRA staff. The website should be launched by August and the entire item should not exceed $10,000 to $12,000. The videographer was included in the line item. The breakdown was about $28,000 for the 2009 Annual Report, $16,200 for the Community Redevelopment Agency website, $3,600 for the website maintenance and the trolley website was $1,800. The purpose of videotaping the meetings was a best practice and many citizens liked it. Citizens could download the meetings and obtain the minutes there. The website receives about 2,500 hits. It was suggested tracking how many individuals watch the videos to determine whether the service added any value. Staff agreed to request the webmaster track the information. Funds were not appropriated for Property Owner Assistance for the Brownfield Designation Programs. The funds for the Economic Development Plan were expended. Funds for the Small Business Development Assistance were used to create a database for 500 businesses, and unused funds could roll over into unencumbered funds once the audit was complete. The bulk of the money; however, was used for the creation of the database. It was not standard practice to budget monies they did not know they had. It was pointed out funds could not be allocated from the General Fund for next fiscal year for General Fund items; rather, the unused funds must be used for redevelopment projects. There would be discussion that funding for Small Business Development Assistance would be addressed in the Project Fund Professional Services budget. It was also noted the Small Business Development Assistance was a recommendation of the Economic Development Plan. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 The Buildings and Grounds Budget had a slight decrease. The equipment line item encompassed copier leases. There was much in-house promotional material being promulgated and the amount covered the color copy excess charges. It was questioned whether the equipment line item should be in the marketing budget. Ms. Harris did not have the copy expenses broken down by department. There was $30,000 budgeted and there was a copy machine coming off lease in June. Staff anticipated using the City’s vendor as a bid and realizing a savings. Discussion also included paying the Marina Village Association Dues because the agency owned the fuel station and various easements. The dues were paid in order to be included in the master association. They were also paying property taxes for structures that were not yet demolished. Staff formally requested a hearing on the property tax valuation for the property in an effort to save money and felt it was probably the only property in Palm Beach County that increased. The Boynton Beach Boulevard Extension did not exist. In order for the Promenade and Marina Village to be constructed, staff had to create another ingress and egress to accommodate the density needed there. The Community Redevelopment Agency floated a bond (Bond #1) and constructed the Extension and the Promenade Walkway for $9 million dollars. Although the improvements were on City property, the Community Redevelopment Agency paid to do it and paid for the maintenance of the hardscape. The Community Redevelopment Agency also maintains the improvements and the softscape, which included landscaping and irrigation. The Marina budget decreased by 40% due to the decline in the economy and sales. If the marina were not included in the budget, the entire budget would be reduced by 13%. The Information Technology budget decreased by 7%. A new server would be needed next year at an estimated cost of $8,000. The Contingency Account Budget was reviewed which showed a reduction of 68%. A comment was received that the additional personnel costs should be part of the contingency fund and there should not be multiple contingency funds. Ms. Harris explained last year there was a main break in the street at the marina the Community Redevelopment Agency had to repair. A special meeting was held to authorize the repair at a cost of $30,000. Those repairs were not in the marina budget. Another example of expenses taken from contingency funds were with the Adult Entertainment and Liquor Licenses. Staff did not have all the money needed in the development line item, so the extra was taken from the contingency fund. It is always prudent to have funds available for unforeseen events. Ms. Bright explained once the audit was finished, remaining funds would come back to the Board for reprogramming. The Personnel Services budget was reviewed. The car allowance for the Director and Assistant Director were commensurate with the car allowances for the City Manager and Assistant City Manager. There was discussion the City Manager’s car allowance was $450 per month. Ms. Harris would verify the amount of car allowance he receives. The Operating Expense budget was reduced by 53%. Funds for design, engineering and professional services were contained in this budget. Legal expenses associated with projects were also discussed as there were a number of contracts pending. The amount was estimated to the end of the year. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 Ms. Harris explained fund accounting for governments to the Board. Previously, all funds were rolled into the General Fund and at the end of the year, the financial statements never reflected monies were taken out of the General Fund, put into specific funds, capital projects, debt service, etc., and then rolled back up. When Ms. Harris assumed her position, the auditor indicated the prior way of operating was incorrect and a separate project fund needed to be created. That was why the members saw a difference in the budget from three years ago. General Fund expenses were kept separate and items belonging in the Capital Project Fund were kept in the Capital Project Fund. There were questions about the Small Business Development Assistance and Ocean Avenue – Main Street Designation items; however, there were no changes made to the budget. The Capital Outlay budget had a reduction of 27%. There was $100,000 rolled over from a few years ago for the Community Caring Center, that was put in the budget as a placemaker. Those monies could be reallocated. Demolition fees were reduced by $25,000. The $1 million for the Heart of Boynton would not be used this fiscal year and was contained in the new budget. The original amount was $1.6 million and it was now at $1.2. It was noted the figure could change depending on what occurred during the year. The Affordable Housing budget increased 10%. The Residential Improvement Program had $100,000 budgeted. Of the $850,000 budgeted for the Homeowners Assistance Program, $150,000 was anticipated to be left over from Bond #2 proceeds. There was discussion the Homeowners Assistance program offered $50,000 down payment assistance. The budget also encompassed the Affordable Access, (RTG) program. This current year $400,000 was budgeted for the RTG lots, but all the money would not be used. The Ocean Breeze Homeowner’s Assistance Program, handled by American Realty, would purchase lots at $20,000 each. The money would be recycled in escrow and distributed as down payment closing cost assistance. Since the Agency was under contract with the developer, they were obligated to reflect the monies as the agreement stood and show the funds as both revenue and an outgoing expense. In actuality, there was a zero impact on the budget. The source of the $600,000 was American Realty paying the agency $20,000 per lot and the agency then expending the funds via down payment closing cost assistance. The Economic Development Programs budget was reduced by 24%. The reduction had to do with the trolley operation, leaving funding for the north route only, running Monday through Fridays only. There was a $100,000 budget from the TIF funds for the Preserve Cornerstone should the developer request his allocation. The allocation was based on the amount of affordable housing units. The Projects and Programs budget was reduced 1%. The budget for the Police still included a 5% merit increase. If there was no increase for Police personnel costs, it was possible by the time the budget was brought back for final approval, that the amount may be decreased. The proposed Special Events budget was reviewed. Ms. Bright explained these were proposals based on ongoing events and they were trying to maintain the current level of service. Developer sponsor dollars for events were scarce. This year the City could not help support the Christmas Tree event. The Agency could no longer hold concerts at OceanFront Park because it was not within the Community Redevelopment Agency District. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 Movie Night at the Intracoastal was held in conjunction with the Palm Beach International Film Festival. Mama Mia was shown and the event was a sing-along. This was an event staff was handling themselves and could expand. There was conversation Movie Night at the Intracoastal was missing an opportunity to attract individuals to the downtown. It was suggested the Agency consider moving the event to the Library. Staff agreed to consider other locations. Moving the Oceanfront Concert Series was also discussed. Chair Taylor explained the location at the beach attracted many people and if moved, some patrons may be lost. It was thought the only area that could accommodate a concert would be by Hurricane Alley, Two Georges or Banana Boat, as it made no sense to assemble individuals in an area that was not downtown. Ms. Bright was not adverse to trying another location but pointed out they had moved the event once before and it was not successful. Staff agreed to consider other locations for the OceanFront Concert Series. The Fourth of July event would remain as it was. The Community Redevelopment Agency contributed to Family Day at the Sims Center. The event had music, church groups, vendors and the eye being on the historical focus. The Community Redevelopment Agency contribution also included books for schools. The community’s perception of the City at the event was very positive, as the City was supporting the community. Mr. Rodriguez suggested a similar event be held at the south end of town. Discussion followed the Boynton Gala had been held in the past but was discontinued. The southwest quadrant of the City did not host any special functions and the southeast quadrant had the Medieval Faire at Jaycee Park. Staff was urged to set funds aside for a potential event on the south side of town, although it was mentioned Pence Park had limited parking. Ms. Bright agreed to set aside $5,000 for an event. She would consult with Ms. Biscuiti about the matter. The Debt Service Fund was reviewed. Ms. Harris explained staff had a concern that with the reduction in the fund balance that they may not have enough operating funds from October through December due to TIF funds being received in January. She clarified the fund balance was fine this year but it may not be the case in the next fiscal year. The information was a placeholder. When the City was complete with their audit, Ms. Harris will obtain a term sheet and then seek both the Board’s and City Commission approval. The Board recessed for a break at 7:51 p.m. The Board reconvened at 7:58 p.m. Chair Taylor opened the floor to public comments. Sister Lorraine , 145 NE 4th Avenue, discussed the increase in audit services. Ms. Harris responded the increase was in the event they were subject to a single audit. If they received a grant of $500,000 or more, they were required to have the audit, which would be an additional expense. At the moment, they did not have any grants but they hoped to obtain such grants. Ms. Harris explained there were checks and balances and staff was stringent. The purpose of the audit was not to detect fraud, it was to indicate the financial statements were 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 fairly represented, or whether there was a misallocation or misappropriation. She pointed out that occurred in the County years ago, and by the time the County realized the situation, it was too late. There was another instance in West Palm Beach that revealed there was $3.5 million in parking funds that should have been collected that were not. An audit revealed there were monies past due and the records were so poorly recognized it was impossible to calculate how much money was due. That was the purpose of an internal auditor. An independent financial consultant comes in and randomly tests at a certain level, once or twice a month. The individual reviews every contract and transaction. Victor Norfus , 261 N. Palm Drive, spoke about the Capital Outlay Project Funds and the Infrastructure and Streetscape line item. He inquired about the 4th Street project in the Heart of Boynton and Economic Stimulus funds. Ms. Bright explained the stimulus funds did not belong in the Community Redevelopment Agency budget. Staff partnered with the City for the 4th Street project, which was currently underway. The Heart of Boynton Project had monies encumbered by the Board for the alleyway abandonment, the Business Incubator program, land acquisition, trash pickup and development assistance and programs. The funds must be reflected in the budget, and they were obligated for the Heart of Boynton. Mark Karageorge , 240A Main Boulevard, put it on record he was impressed with this year’s budget. He commended Ms. Harris and staff. Charles Ness , 1902 SW 13th Way, requested the trolley be restored even if patrons were charged. He indicated the trolley should go to the beach, which presently was not available via mass transit. It was noted the beach was not in the Community Redevelopment Agency district and at one time they tried it, but it was unsuccessful. He also explained his experience on the trolley was terrific. The trolleys were always on time. Mr. Rodriguez explained they never had a south trolley, as ridership was minimal. They also considered a pay per ride, but would not break even. It was also noted some of the riders could not walk to the stops. Alan Hendricks , 122 SE 4th Avenue, thanked the Board for their service. He spoke about the Old High School and advised he organized an effort to keep the school from being torn down. He commented economic development could be spurred by preservation efforts. He requested the Board find monies for it and explained it appeared the Board was waiting on someone else to make a move. The Community Redevelopment Agency, the citizens and the City needed to work in concert. He advised he could obtain grants but he needed seed money and the Community Redevelopment Agency and City had to act as if they want it. Mr. Hendricks advised they started a Face Book page and 200 individuals signed up to work with fundraising individuals. He had experience in this area and his firm expended time and effort on these types of projects in the past. Mr. Rodriguez requested discussion regarding some of the monies being rolled over from other projects. He thought if they provided seed monies, the school could be stabilized until the structure could be saved, and more specifically, this would involve stabilizing the roof and painting the structure so it would not be an eyesore. He viewed the structure as an opportunity to redevelop the downtown. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 Ms. Ross agreed. She worked with the Florida Trust for Historic Preservation, who was also concerned about the school. She explained the building was on the 10 most endangered buildings lists. Ms. Bright explained the Community Redevelopment Agency does not own the Old High School; rather the building was conveyed to the City in January. The City was also entertaining an outstanding RFP that included bonus points for saving the structure. The core of the issue was the use and no one has been able to identify one. The City had budgeted $650,000 last year for the school and she was unaware if the funds were still available. Chair Taylor advised those funds were taken out of the budget. Further discussion followed that only certain types of organizations could obtain funds. Mr. Rodriguez explained the Community Redevelopment Agency does not own the building, but they could still preserve it. He expressed unless they allocated funds, as a contingency, they could not save it. It was noted the RFPs were due after September and it was anticipated the responses would not come in. Mr. Rodriguez thought the monies should be allocated now as a backup for the RFPs not coming in. Ms. Brooks explained it is difficult to fundraise without a use for the structure. If there was no use for the budget, there is no budget; if there is no funding source, there is no source of grant. She explained the community galvanized to save the High School, but not what its use would be and that was the real issue. Further discussion ensued that the downtown master plan brought people together. Ms. Bright noted there was dissatisfaction the Community Redevelopment Agency did not aggressively try to put a user in there and did not go to RFP a second time. The ownership would have to transfer to an independent entity in order to fundraise. She explained you could not fundraise unless there was legal title to the property. Mr. Rodriguez inquired if they could do a façade grant. Attorney Cherof explained staff could spend money related to the High School if it fell within one of its development or redevelopment plans. Any expenditure would have to fall within the parameters of the Community Redevelopment Agency programs. Ms. Brooks explained fundraising was difficult because there was no tax benefit to give money to the City to save the building for a donor. If they had that kind of money, it would have to be given to a 501(c)(3). It was suggested the matter be tabled and discuss it at another meeting. Mr. Weiland explained he originally was in favor of saving the building, and changed his mind because no one has done anything with it. He was open to saving it if individuals came forward. Mr. Hendricks explained they were working on a three-year proposal that would define some of the uses but not pigeonhole them into a use. The 501(c)(3) was part of their first-year action plan. Mr. Oyer, Jr. was committed to assisting them. The initiative started and stopped. He pointed out that was where the City, Community Redevelopment Agency and individuals interested in the project came in. There was agreement the Board would discuss the matter at the next regular meeting, and as long as it was discussed within the budget, it would be fine, otherwise it was a moot point. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 Herb Suss, 1711 Woodfern Drive, inquired what the Community Redevelopment Agency was owed. Ms. Bright explained Mr. Cherof was working on a possible foreclosure action regarding the Delray Boynton Academy where the Community Redevelopment Agency and the County lent $100,000 to the Delray Boynton Charter School The Board was trying to collect some of those funds. Other than that, there were no other outstanding collectibles. Barbara Ready , 329 SW 13th Avenue, reminded the Board of the EDAW report and that several charrettes indicated the use of the Old High School was entwined with the goals and mission statement of the Community Redevelopment Agency. The mission statement indicated the Community Redevelopment Agency would provide a cultural/civic campus along Ocean Avenue and the usage of the Old School was identified as a civic/cultural use. She felt the City should own the facility and the community would assist them. She thought the structure should be a public facility. Ms. Bright put on record the Old School Square cost the City and Community Redevelopment Agency each $350,000 because of the labor to run a large facility. Herbert Macintosh , 7549 Colony Palm Drive, explained last year there was $2 million budgeted for land acquisition and infrastructure. A challenge in developing the Heart of Boynton area was acquiring the properties as many owners wanted too much for their property. He anticipated property values would drop over the next year and land could be acquired at a much lower rate. Development would therefore not be constrained by owners who would not sell. It was noted the 4th Street line item was for streetscape and infrastructure. The Heart of Boynton Project and Land and Other Capital Expenditures totaled $2 million. In the proposed budget, the amount was reduced to $1 million. Vice Chair Hay explained if there were monies obtained, they could be used for acquisition. Ms. Bright explained the trolley operator was present to discuss the southern route and the possible scenarios and fare collection for the routes. Molly Stahlman , Proprietor of Molly’s Trolley’s reviewed a PowerPoint presentation. The presentation is included with the meeting materials and addressed the demographics of the Green Line Route and the Red Line. Information such as riders per day on each line, caveats for passengers of the red line, such as the ability to get to the bus stop and destination preferences were reviewed. Four options were presented with the associated cost information presented on a yearly basis and a seasonal basis. Information on a Saturday northern route, ridership and capacity were presented. The trolley cost variables were presented which included the elimination of Saturday service on the North Route, charging for the trolley ride on both routes, and offering a South Route a few days per week. A matrix with all the options was presented for the Board’s consideration. If the riders were charged 50 cents for the Saturday route, they would lose 15% of their riders. Ms. Bright explained the trolley was her first project once she joined staff and it takes a long time to build a route. It was thought the Board could not make a determination of how to proceed because they did not have the total budget figures and they should keep the item as a placeholder. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 Discussion followed about the length of the trolley operator’s contract and the number of hours. Contracts were generally eight or 12 months. Mr. Rodriguez wanted to confirm other funding sources that may have monies left over. The Heart of Boynton project had monies left over from acquisition that would roll over into the HOB budget this year. The Ocean Breeze lots budget was a wash because the project may not get off the ground. The Constrained Roadway at Lower Level of Service (CRALLS) transfer monies was a wash. The unencumbered proceeds from Bond #2 were $150,000 but those monies may not be available because some of the funds were designated for RTG lots. There was a deadline for RTG to request the funds. There was a Capital Acquisition rollover from 2006/2007. Mr. Rodriguez suggested this item be a placeholder. The project fund balance of $400,000 was not designated for any specific project. It was embedded in the project itself. Mr. Rodriguez noted with the $400,000 and the $150,000 from RTG there was potentially $550,000 available. He recommended the Board allocate and encumber the funds to stabilize the high school. It was great seed money and was an opportunity to support the historic high school, as the money was unused and unencumbered. Discussion followed the site was not a historic site and there was no use planned for it. It made no sense to put funds into a project in which the City and the Community Redevelopment Agency would not invest $8 million. The members discussed authorizing seed money only if the City would match the funds and have unity between the agencies. Mr. Weiland thought a use for the building should be identified and that the building was a piece of Boynton’s history. It was thought there was room to dig in the City to find money. He advised he could only support it if the City and Community Redevelopment Agency were in favor of it. Discussion turned to how the high school was part of Boynton’s history. Vice Chair Hay advised he was in favor of saving the Old High School, but questioned at what cost. He recalled in the past individuals informed the City Commission they had a plan which never materialized. Now there was another individual indicating the same thing. While he was willing to wait and see what could happen in a reasonable amount of time, he did not want to support a project that would continue to drain the City coffers. Until the organization presented something, he was not in favor of seed money or any other funding. Ms. Ross indicated the time was now to make a commitment. The roof needed to be stabilized and the City needed to support it at the Commission level. It is on the Florida Historic Preservation List of 10 Most Endangered Buildings. Mr. Weiland agreed they had to be united and say they are willing to move forward with it. Motion Mr. Rodriguez moved to allocate $500,000 to restoring and stabilizing the Old High School. He clarified since the budget was not complete, that the motion was meant to be a placeholder. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 There were questions whether a motion could be made in a workshop. Attorney Cherof explained it was only to set the funds aside in the budget workshop discussion. Ultimately, the budget would be approved in September and the matter would have to be voted on then. Mr. Weiland seconded the motion. Chair Taylor advised the Board had not wanted to make a decision on the trolley and set it aside as a placeholder and now the Board wanted to put more money aside for the Old High School. Mr. Rodriguez explained he allocated $500,000 and there was $550,000 that was available. Potentially there was enough room to operate the trolley. Ms. Bright cautioned the millage was still unknown and there were other options. Ms. Harris clarified this was an important discussion because if the millage rate stayed the same they were looking at a budget deficit of $340,531. If they added another $500,000 to it, staff would have to cut over $800,000. Mr. Weiland also noted if there was no commitment from the City to be involved in the endeavor he might not support the project. Motion Ms. Ross made a substitute motion to set aside $500,000 with the condition this is a comparable matched by the City Commission level. Mr. Rodriguez seconded the motion. A vote was taken and the motion passed 3-2. (Chair Taylor and Vice Chair Hay dissenting.) Attorney Cherof clarified the above was not an appropriation – it was a priority as the Board moved forward in the budget process. The funds were not locked in. It was noted further staff instruction should be given in the event the funding did not occur. Direction on other programs was needed. Ms. Harris explained the trolley needed to be addressed as the contract trigger was August 15, 2009. If the Board opted to move forward with the contract, the trolley could not be touched when everything else was realigned. Ms. Brooks explained the figures were for discussion and they had no way to know what the millage rate would be. Staff was not married to any particular item; rather they were only looking for ways to activate the downtown area. The public market was discussed. It was noted infrastructure or some type of covering for the market would be needed for the project, which was located on vacant property at 500 Ocean Avenue. Discussions were held with the property owner but funds for research to develop a public market were needed. It was anticipated the market would cost about $250,000. Ms. Bright had attended a session about the market but the cost to bring the people to the market was too high, so the market was going to the people. The initiative was more like an event or an attraction and grant monies were available to help develop it. Parking was also discussed. In other areas, public markets were routinely scheduled for a certain day - rain or shine. There was a main street area that could be used and the merchants selling their products would have to be registered vendors. Discussion also followed about why it would cost $250,000. It was noted staff was trying to focus on the loss of economic development dollars. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 The location was anticipated to be in the area across from Hurricane Alley; however, the Code currently did not allow for such a function. Staff agreed to forward links to the members for their review of the concept and there was Board consensus for staff to research the matter further. Mr. Rodriguez noted there were proposals to sell land, which could bring in revenues through the budget cycle. As to the Old High School, Ms. Bright explained the challenge was how soon they could deliver the $500,000 investment money to increase TIF without renovating it. Ms. Bright was unsure even $1 million could change the building, making it active space, and increase the tax revenue. Mr. Weiland suggested $1 million be designated between the Community Redevelopment Agency and the City and put in an escrow account to let the community work on their proposal. If community funding was not received, the set aside could be voted on to be abandoned and the funds released for other projects. Ms. Bright responded the issue was if the agency was going to make that commitment, the best interest would be to sell 211 Ocean to try to fund that. No matter if $1 million or $2 million were spent on the Old High School, it would not be active space in the near term. She pointed out then it would make sense to sell 211 Ocean and receive income, which could allow them to move forward other projects such as Ocean Breeze. Spending money on the Old High School would not increase TIF revenues. As director, Ms. Bright felt she had a responsibility to advise the Board of that. Chair Taylor preferred to see 211 Ocean renovated and staff office moved. Mr. Rodriguez was not in support of moving the Community Redevelopment Agency. He felt renovating the Old High School, as a long-term investment would be ten-fold of an office space on Ocean. The Old High School was likened to the Children’s Schoolhouse Museum. It was noted the City subsidizes the Museum. Ms. Bright explained the Old High School was purchased by the prior Board to activate Ocean Avenue. She expressed frustration they would spend $500,000 on a building they do not own. Mr. Weiland explained there were uses for the building at 211 Ocean Avenue, and he liked the idea of having the Community Redevelopment Agency office on Ocean Avenue. As to the Old High School, each entity had to be a partner. Mr. Rodriguez explained every citizen who pays taxes owns the building. Vice Chair Hay liked the idea of the Community Redevelopment Agency having office space at 211 Ocean and he liked the idea of generating TIF. Mr. Weiland left the meeting at 9:27 p.m. He inquired if it would be cost effective if they were to renovate the structure for residential. The structure was currently zoned residential. Ms. Brooks explained the rent they get on any properties does not cover the tax they pay. If, however, the Community Redevelopment Agency renovated the office space, it would still have a historical feeling to it. Ms. Brooks responded it would. She noted there were ways to have the carrying costs close to what they are paying in rent, but it was a Board decision. The building was sitting vacant. Anytime there is a vacancy whether in lot or building, it does not add to the ambience of the street. Mr. Weiland returned to the meeting at 9:29 p.m. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 10, 2009 Chair Taylor requested the Board give direction to staff as to how many members the new Board would be. He suggested five members. It was noted two additional members could be added later. It was further discussed that if the Board had seven members and they wanted to reduce the number of members, that it was difficult to accomplish as the Statute has provisions for removal of Board members. It was not the same as changing the Board from an Independent Board to a Commission, as there was a requirement for having a statement of cause. It was decided the number of members would be discussed on the City Commission level. Vice Chair Hay inquired if it would be easier, if a five-member Board were in place, to add another two members later. Attorney Cherof explained if the Board members opted for a five- member Community Redevelopment Agency Board, a revision to the Ordinance would be needed and it would require three votes. Ms. Bright summarized the direction to staff as any leftover monies in the budget would be put towards the Old High School and the Public Market. As to the building at 211 Ocean, she indicated there was no clear consensus regarding the building. Ms. Harris explained the mortgage on $900,000 would be approximately $5,400 per month. It would take approximately 18 months to construct. The sculpture garden was an idea put forth by the community to change the land use and zoning to commercial, to create art and allow public entities to use the building. She inquired if there was any interest in the proposition. Mr. Weiland was under the impression the zoning was commercial. Ms. Bright explained the goal was to change the designation to commercial and activate the space. Mr. Rodriguez expressed the structure should be left alone this year as it would take $2 million to fix it. Ms. Bright explained that was an inconsistency. Mr. Rodriguez thought the Old High School would be a civic center. Ms. Bright clarified the issues were downtown issues. In Delray Beach, their Community Redevelopment Agency renovated the Old School Square Building, which stands as an active civic use, totally supported by the City and Community Redevelopment Agency. The Community Redevelopment Agency purchased a historic building for $1.4 million from the City, invested another $900,000 into it, which stands as their office today and for historic preservation. Historic preservation is costly and it did not matter what the structure was. The Community Redevelopment Agency was not trying to save the building, and on a staff level, there was ongoing dialogue that nothing was being done in the downtown. She emphasized the building was an asset on the books for two years that remained stagnant. Staff felt it was critical to activate the area especially in light of the fact that they were going to push for concerts at the library and in front of the Children’s Schoolhouse Museum. Ms. Brooks explained her issue with the High School was if it would be a performing arts center, the building was not set up as one. If the community desired a type of performing arts amphitheater, the high school in its current form would have to be changed significantly. She clarified that was why she inquired what the use would be when it came to fundraising. There was a huge difference in repairing the structure and making it whole. Mr. Rodriguez explained there was an advisory Board being set up to advise what the use was. He indicated the current discussion, and by allocating funds, worked in tandem with their recommendations. If the Board did not like the recommendations, they could use the funds for another use. Ms. Brooks explained restoring the High School was not necessarily consistent with having it as active space. If the Art and Civic Centers were relocated there, nothing would be added to 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Fl August 10, 2009 Ocean Avenue; rather it would just be replacing the use and activity and saving the building. If the Board wanted more activity on Ocean Avenue, then they were discussing some type of performing arts, which the building was not designed for. She emphasized those were the type of discussions that needed to occur. She explained the community needed to determine the use, and it could not be from a handful of individuals. Ms. Bright explained the Community Redevelopment Agency Board regular meeting was September 8, 2009. Since they would not be able to vote on the budget at that time, she inquired if the Board wanted to hold one meeting on September 8 and a special meeting to approve the budget after September 22, 2009, or whether one meeting should be held in September. After discussion, there was consensus to hold a regular meeting on September 8, 2009 and a special meeting on September 29, 2009 to approve the budget. There being no further business to discuss, the meeting properly adjourned at 9:41 p.m. (jilUv~ {Jlu~U( Catherine Cherry . I Recording Secretary 082409 15