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Minutes 09-27-10 MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON MONDAY TUESDAY, SEPTEMBER 27,2010 AT 6:30 PM IN THE CITY COMMISSION CHAMBERS CITY HALL, BOYNTON BEACH, FL PRESENT: Jose Rodriguez, Chair Marlene Ross, Vice Chair Woodrow Hay Steve Holzman William Orlove Lisa Bright, Executive Director James Cherof, Board Attorney The meeting was called to order by Chair Rodriguez at 6:33 p.m. following the opening and recessing of the Regular City Commission meeting. I. Final Budget Meeting for Fiscal year 2010-2011 Mr. Orlove recalled the $15,000 for the electronic agenda had been removed from the budget pending the appointment of a new Board. He contended some funding should be inserted into the budget if the new board would want to purchase laptops. Chair Rodriguez noted there was $75,000 in contingency that could be moved back into the agenda. Mr. Orlove addressed the issue of the trolley and he understood the City was owed $436,680 for the 4th Street project. Ms. Harris added the monies were a fund balance allocation. The expense would be deferred until next fiscal year; however, if the monies were re-allocated there would be no monies to pay the amount the next year. Mr. Orlove reiterated his position that he was willing to keep one transportation system, but not both the trolley system and Shopper Hopper. He now proposed to keep the trolley system and phase out the Shopper Hopper. Mr. Holzman strongly asserted the purpose of the CRA was to develop the downtown. The trolley did not add to the downtown. All those interested in the issue have indicated they use the Trolley to leave the CRA district. The point of the Board was not to fund Congress Avenue, but rather to bring people to the downtown. The taxpayers of the CRA district were paying to keep and attract businesses to the downtown area. Mr. Orlove understood the concerns. He pointed out the routes serve many of the people who live in the CRA district and the Board should support that service to provide goods and services for the residents of the CRA district. He could not support two transportation systems within the City. Mr. Orlove did want the trolley to service the MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, SEPTEMBER 27, 2010 AT 6:30 PM IN THE CITY COMMISSION CHAMBERS CITY HALL, BOYNTON BEACH, FL PRESENT: Jose Rodriguez, Chair Marlene Ross, Vice Chair Woodrow Hay Steve Holzman William Orlove Lisa Bright, Executive Director James Cherof, Board Attorney The meeting was called to order by Chair Rodriguez at 6:33 p.m. following the opening and recessing of the Regular City Commission meeting. I. Final Budget Meeting for Fiscal year 2010-2011 Mr. Orlove recalled the $15,000 for the electronic agenda had been removed from the budget pending the appointment of a new Board. He contended some funding should be inserted into the budget if the new board would want to purchase laptops. Chair Rodriguez noted there was $75,000 in contingency that could be moved back into the agenda. Mr. Orlove addressed the issue of the trolley and he understood the City was owed $436,680 for the 4th Street project. Ms. Harris added the monies were a fund balance allocation. The expense would be deferred until next fiscal year; however, if the monies were re-allocated there would be no monies to pay the amount the next year. Mr. Orlove reiterated his position that he was willing to keep one transportation system, but not both the trolley system and Shopper Hopper. He now proposed to keep the trolley system and phase out the Shopper Hopper. Mr. Holzman strongly asserted the purpose of the CRA was to develop the downtown. The trolley did not add to the downtown. All those interested in the issue have indicated they use the Trolley to leave the CRA district. The point of the Board was not to fund Congress Avenue, but rather to bring people to the downtown. The taxpayers of the CRA district were paying to keep and attract businesses to the downtown area. Mr. Orlove understood the concerns. He pointed out the routes serve many of the people who live in the CRA district and the Board should support that service to provide goods and services for the residents of the CRA district. He could not support two transportation systems within the City. Mr. Orlove did want the trolley to service the Special Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 27,2010 southwestern section of the City. Both systems cannot be subsidized by the CRA or the City. His proposal included the trolley being subsidized through January with the funds and riders pay a fee. The service level may have to be reduced in the interim while the City and CRA budgets could be reviewed for funding. By January a decision could be made whether the trolley or Shopper Hopper should remain in service. Mr. Orlove supported the trolley as long as the route included the entire City. Ms. Harris cautioned the monies owed to the City are not in a reserve. The funds would have to come from new budget dollars next year which may necessitate the elimination of another program within the budget. Chair Rodriguez did not support maneuvering the monies. Ms. Harris added there was a termination fee of $20,000 if a 45-day notice was not given. The contract expires on October 1,2010 and notice had not been given. Chair Rodriguez surmised the contract would have to be renegotiated for a shorter term and the monies agreed upon. Ms. Brooks indicated the contract could be renewed for another year and then amended to change the route. It would involve changing all the collateral and all the signs. Chair Rodriguez researched the purpose of the trolley system when it was initiated and if the goals had been achieved. A justification report in 2004 outlined the purpose of the trolley was to encourage patrons to park once and use the internal transit services for internal trip chaining. The current intent of the trolley was never envisioned in the beginning. He stressed the Shopper Hopper has two stops at Boynton Bay with a nominal fee. Palm Tran and Shopper Hopper covered approximately 100% of the trolley's routes. Observation revealed many students ride the trolley to high school because they do not want to wait for the school bus. The citizens are then paying twice for the transportation service through the school district and the trolley. The focus should be on the downtown. The money could be used for other purposes. The Shopper Hopper is supported by the City and can be utilized throughout the City. Mr. Hay did not want to divide the City with dollars. It is one City and any money spent within the entire City benefits the City of Boynton Beach. The Trolley serves a great need. He supported saving the Trolley. Mr. Bressner had a plan that could save the trolley. Ms. LaVerriere reported the City had entered into an Interlocal Agreement with the CRA that had been amended to conduct the improvements on 4th Street and cost share the expense with the CRA. The proposal was to defer the payment of the money another year to fund the Trolley system. It would be a short-term remedy. Mr. Hay supported the proposal to defer the payment for a year and review the issue then. Mr. Holzman questioned where the money would be found based on the real estate market and the economy. No projects could be started along MLK or the downtown next year to save the money for the payment next year. Vice Chair Ross needed clarification on the possible expansion of the Shopper Hopper program for more residents. Chair Rodriguez stressed the Trolley is free while the 2 Special Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 27, 2010 Shopper Hopper has a minimal cost to the riders. It would be irresponsible to fund the Trolley with monies that are not available. The Shopper Hopper could be expanded and it currently services all districts. Mr. Orlove felt the public should pay for one of the systems and perhaps create a monthly pass at a reasonable rate. It would raise the ridership if Shopper Hopper was phased out. There is $150,000 in grant monies available. He suggested the Trolley be allowed to operate through December and in the interim work on establishing one alternate transit system in the City. Chair Rodriguez summarized the CRA staff should be directed to negotiate a four month contract with Molly's Trolley and use monies from the contingency fund. Ms. Harris interjected the contingency funds for the entire year had been budgeted at $75,000. The monies would have to come from the fund balance that is obligated to the City. Mr. Holzman strongly objected to the use of the funds owed to the City. Mr. Hay agreed to support the four month plan. Mr. Holzman stressed the funds to replenish the monies would not be available. Chair Rodriguez agreed the monies would have to be found elsewhere and that risk would have to be assumed. He pointed out the ridership figures submitted had never been justified by staff. Ms. Brooks explained ghost riders were sent out and the numbers did not jive. Mr. Holzman asserted the number submitted would indicate at least 100 round trip riders per day and he did not think that was possible. Vice Chair Ross commented there was an obvious need in the community and it was hard to ignore and not consider. Mr. Holzman contended the taxpayer dollars that would be spent on the trolley, rather than redeveloping the downtown, should also be considered. Motion Mr. Orlove moved to direct staff to work with Molly's Trolleys to extend the contract through January of 2011 and to work with staff to come back with a proposal seeking grant funds, a monthly pass - some sort of system to run the trolley system for less than it has been. Mr. Hay seconded the motion. Ms. Brooks' recommendation was the available monies should be spent on a capital project in the downtown. She noted the intent of the trolley in 2005 went way beyond a circulator in the downtown area. There is a traffic concurrency exception allowing a D- level service on the roads for the large developments downtown because parking can be an issue in downtown areas. Many routes have been attempted to increase ridership in other areas. There could be a time in the future when the circulator transportation system would be cost effective. At this time, Ms. Brooks felt creating more residences and businesses in downtown should be the priority to increase the tax base to fund a trolley system. The current routes are consistent with mass transit and overlap the Palm Tran and Shopper Hopper routes. Many elderly residents do not have cars. Leveraging the dollars to promote the vision for the downtown should be 3 Special Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 27,2010 paramount. The available grant would not allow a fee to be charged. She cautioned any change to the route would require all signs to change with the associated costs involved. The motion passed 4-1 (Mr. Holzman dissenting). Mr. Orlove reiterated the intent of his motion was for a four-month stay to allow more time to make informed decisions. II. Proposed Resolution CRA 10-01 Re: Adopting the Final CRA Budget for Fiscal Year 2010-2011 Ms. Harris pointed out approval of the budget should include the ability to amend the contingency fund based on any changes the County may make. Motion Mr. Hay so moved. Mr. Orlove seconded the motion. Chair Rodriguez opened the issue for public hearing. Mark Karageorge, 240A Main Boulevard, alleged the Statute relating to the CRA did not include direction on transportation and the CRA mission statement did not encompass transportation. The trolley system was initiated when real estate was artificially inflated and was never a necessity. Using funds that should be paid to the City for the 4th Street project would be against the Statute and the mission statement. Molly Stahlman, owner of Molly's Trolleys, thanked the Board for the extension. She asserted the rider numbers were accurate. Tomas Boiton, with Citizens for Improved Transit, thanked the Board for the four- month stay so the options could be fully investigated. He compared the ridership of the Shopper Hopper and the Trolley. He agreed the services could be improved or expanded. The possible grant monies would greatly reduce the cost. Staggering the times and a reduction in the contract amount were also possibilities to be pursued. He hoped over the next four months the system could become affordable for everyone. Chair Rodriguez responded the grant had not been applied for because it required a match to support and fund the entire system. Ramona Frederick, 1001 N. Railroad Avenue, commented the public would go to the downtown area if there were more businesses, especially a grocery store. 4 Special Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 27,2010 Estelle Goodell, a resident of the Boynton Beach Assisted Living Facility, needed the trolley to get out since she did not have a car. She agreed a monthly trolley pass may be appropriate or reduced rates for seniors or students. The Shopper Hopper limits the duration of the stop to one hour. Joelyn Svrcek, 625 Casa Loma Boulevard, Marina Village, suggested the budget be balanced by holding the $800,000 plus dollars slated for the Magnuson House. She reminded the Commission people vote, buildings do not. An unidentified individual contended it was not fair to cut the Trolley that many depended on for transportation. Something else could be cut to balance the budget. Chair Rodriguez closed the public hearing. Mr. Holzman apologized to the citizens of the CRA who contended the Board does nothing for them. The reason would be the funding of the Trolley would serve to delay any advancement of the MLK Corridor and the downtown area for another year. Mr. Hay countered the comment was not true. The motion passed 4-1 (Mr. Holzman dissenting). Chair Rodriguez recessed the CRA meeting at 7:23 p.m. Chair Rodriguez reconvened the CRA meeting at 7:45 p.m. III. Discussion and possible action regarding implementation of Board action to not renew Executive Director's Employment Agreement Mr. Holzman explained the CRA had decided to not renew the contract and the impact of that decision was not fully understood. It was assumed the better choice was to not renew rather than terminate resulting in not paying of severance. The City Attorney had subsequently explained the non-renewal of the contract would not eliminate the payment of a severance package. Transparency was important and Mr. Holzman requested clarification of the fiscal impact. Attorney Cherof advised, based on the calculation done by the CRA Finance Director, the 120-day severance amount would be $42,123.62. The contract ended on September 30,2010. The severance pay was an issue for Mr. Holzman because the contract would have expired on September 30, 2010 and the matter only came before the Board due to misconduct. He felt a precedent would be set of rewarding bad behavior that elicits a response from the Board when misconduct rises to termination. 5 Special Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 27,2010 Mr. Orlove read into the record a portion of the contract, paragraph "7.3 Rights and Obligations. Upon unilateral termination by the CRA, unilateral termination shall be in writing signed by the CRA and need not reflect performance related reasons. If this contract is terminated by unilateral action by the CRA, Lisa Bright shall be entitled only to the following, unless it is determined that Lisa Bright is guilty of misconduct or gross neglect of duty or is charged with a crime and in that case she shall be compensated only for actual time worked." The contract then delves into compensation. He felt it was clear she was not guilty of misconduct or gross neglect of duty and the severance package should be paid according to the contract. Attorney Cherof advised the contract does reflect an entitlement to severance pay unless it is determined that Lisa Bright was guilty of misconduct, gross negligence of duty or charged with a crime. A specific finding by the Board would be required. Chair Rodriguez inquired if the findings in the report would constitute misconduct. The report did not draw conclusions which would have been beyond the scope of the investigator's responsibilities. The acceptance of the report would not equate to a determination of guilt of misconduct or gross negligence. Vice Chair Ross understood when she had seconded the motion to not renew the contract, that Ms. Bright would receive severance. Vice Chair Ross recognized the Board was not a court of law and a State Attorney investigation was pending. She ultimately supported Ms. Bright receiving the severance per the contract. Motion Mr. Holzman moved to reconsider the finding of the Board in order to make a motion that the Executive Director was guilty of misconduct thereby not renewing her existing agreement. The motion died for lack of a second. IV. Discussion and possible action on severance pay provisions of Executive Director's Employment contract Attorney Cherof explained the process. The contract did provide for severance pay under the conditions outlined, absent the finding. The prior Executive Director would be entitled to written notice, signed by the Board, that had not occurred. She would also be entitled to 120 days of pay. The former Executive Director has been on administrative leave with pay and the contract would require regular pay until the contract expires. Attorney Cherof would compose a letter for signature by the Board Chair including a check for $42,123.62. V. Motion for reconsideration of September 21st action of Board not to renew Executive Director's Employment Agreement 6 Special Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 27,2010 Mr. Holzman indicated it was unfortunate the Board had failed to consider that every dollar spent is a citizen's dollar through property taxes paid to the CRA or City. Nothing was moving forward because the Board is misguided and misunderstood the Board's role as arbitrators for the dollars. The money has been utilized upon a whim rather than a clear understanding of the Board's role. VI. Adjournment There being no further business to come before the Board, Chair Rodriguez properly adjourned the meeting at 8:00 p.m. /'I 7