Loading...
Minutes 08-23-11 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD WORKSHOP HELD ON TUESDAY, AUGUST 23,2011 AT 6:00 PM IN CITY COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BLVD., BOYNTON BEACH, FLORIDA PRESENT: Jose Rodriguez, Chair Bill Orlove, Vice Chair James "Buck" Buchanan Woodrow Hay Steve Holzman Mark Karageorge Marlene Ross Vivian Brooks, Executive Director James Cherof, Board Attorney 1. Welcome by Board Chair Rodriguez Chair Rodriguez called the meeting to order at 6:00 p.m. 2. Invocation None given. 3. Budget Overview Vivian Brooks, Executive Director, explained if the budget were approved, there would be a resolution forthcoming. Ms. Brooks reminded the Board the meeting was a workshop and staff was looking for two policy issues. One was, if the Board wanted to proceed with the budget as proposed by staff and discussed in June. The second issue was the proposed budget was set at the current millage rate because experience has shown that typically the millage may change. Accordingly, staff will need direction from the Board, if the millage stayed at what was set by the City Commission, what the additional funds would be used for. Chair Rodriguez commented public comments would be heard after the budget review. Susan Harris, Finance Director, reviewed the budget as follows: Revenues The 2011-2012 estimated revenues of $5,510,000 remained the same. 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 23, 2011 Marina revenues remained the same, but were budgeted for a $2 per square foot increase. This would amount to $16,000. Any new marina leases would be brought to the Board, and there had been discussion the leases were the lowest of municipal marinas in Palm Beach County. Chair Rodriguez recommended this item be added to the September agenda. Ms. Harris sought clarification about the budget process. The City Commission would be holding its first budget meeting on September 6th. Ms. Harris was comfortable with using whatever millage would be set then. There was agreement Ms. Harris could adjust the millage rate in the budget based on the first meeting. The County's final budget meeting was September 27th. The CRA budget resolution could be adopted at the CRA's September 13th meeting, in conjunction with the City Commission meeting on the 6th, or at a special meeting. The Fund Balance Rollover Appropriations remained the same and had two components. One was the rollover from fiscal year 2008/2009 of $200,000, which the Board had not yet allocated, and $100,000 from this year's current budget that staff did not anticipate using in the General Fund. There was an additional $380,000 General Fund Balance Allocation, which arose as the result of discussions held by Ms. Harris and Ms. Brooks, who anticipated the assessed valuations in TIF for the next few years to be stable. Thus, the working capital needed for the Community Redevelopment Agency to operate with from October through January would be stable and there would be $2 million in the fund balance. Staff had to budget $2,381,000. The funds would be put in next year's budget and the Board could discuss how to allocate them. Ms. Brooks had created some pre-allocations increasing budgets for some of the projects the Board had already given direction on. The Total Estimated Revenue Sources amounted to $7.3 million. General Fund Operatinq Expenses The amended budget and estimated expenditures in the proposed budget were provided. Ms. Harris included the amended budget because during the year, the Board decided to take monies from the General Fund and use it for various purposes. A proposed column was included to reflect those decisions. The proposed budget versus the original budget was reduced by 9%. The amended budget versus the proposed budget was flat. (Mr. Holzman left the meeting at 6:06 p.m.) Fundinq Available for Proiects The total revenues of $7.3 million less the projects and expenses reflected there would be $1,468,693 available for new projects. Included in the expenses was a $100,000 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 23,2011 refund to Palm Beach County for the Regions Grant Program for failed Boynton Beach businesses, Village Ice Cream and Delray Boynton Academy, for $50K each. Ms. Harris noted the County had sent a demand letter. Project Fund Revenue & Potential Projects Ms. Harris reviewed the following: ~ Special projects remained the same. ~ Legal expenses increased slightly for the project fund based on the current year's experience. ~ Design and engineering expenses increased slightly. ~ Site work and demolition increased due to the marina and other projects Ms. Brooks had discussed with the Board. ~ Commercial Fagade Grants were increased from $45K to $90K. ~ Economic Development Grants remained the same. ~ Sea Life Illumination was $50,000. ~ The entryway signage at the Marina at Boynton Beach Boulevard and Federal increased. ~ Development of Phase I Marina also increased. ~ Banners increased from $15,000 to $20,000. ~ The marketing incentive remained the same. ~ Expenses for Ruth Jones Cottage increased $27,169 for the interior design. ~ A project fund contingency of $100,000 was based on construction experiences for the projects this year. Proposed Special Events The total budget was $257,990. There were no comments received. Tax Increment Fundinq (TIF) 2011 - 2012 The TIF calculations provided were based on three scenarios. One was at the current County and City millage rate; one was at the mid range; and one would yield extra money if the County and City approved the July millage rates. Ms. Harris commented if the millage rates increased, the payments to the developers increased. (Mr. Holzman returned at 6:09 p.m.) Ms. Harris clarified this was the extra money being discussed which was not in the budget and was for the Board to decide. The July approved calculations were very close to the roll back millage rate. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 23, 2011 General Fund Balance Analvsis This analysis reflected that, after working capital and obligations were paid through the end of September, $1,000 would be available. The Agency wanted to use all the money and by State Statute, it had to be spent on redevelopment projects. The General Fund - Budoet Summary Ms. Harris reviewed this budget contained the projects, rollover funds, and department summaries. Personnel costs accounted for 10% of the General Fund and the City's personnel costs were at 80% or 81 %. Debt service and transfers were included. The budget document reflected the amended budget, the estimate, and proposed budget. The Board's budget decreased 51 %. Additionally, $5,000 for community support items for the Board was included, and it was up to the members if they wanted more funds allocated. The $2,500 donated to the cleanup came from HOB funds and normally would have come from this fund. Expenses for conferences and workshops were included. Office supplies decreased and the City paid for everyone's cell phones except for Messrs. Karageorge and Buchanan. General Fund - Executive Department This year, Ms. Brooks' expenses were kept in the Planning Department budget because that was where she was originally budgeted. Next year, her salary would be in the Executive Department budget. Last year, retirement funding was removed, and this year it was reinstated. It amounted to $59,000 spread over the departments. Even with adding in that benefit, the budget was flat. Conferences and travel were for local conferences. Ms. Brooks' new contract included the State and National Conference and mileage for both her and the Administrative Services Manager. Ms. Brooks did not receive an automobile allowance but was entitled to mileage. Membership dues increased slightly. Chair Rodriguez requested confirmation that the Board had approved all items in the budget, with the exception of the increase in the price of the Marina slips. Ms. Harris confirmed that everything discussed at the June meeting was incorporated in the budget, with the exception of departmental details. Ms. Brooks explained they made the recommendation as part of the budget to increase the rent, but there were no other items that were not contingent on a Board decision. The Marina slips and potential for a $2 increase had been discussed in June, but there was no vote. Discussion followed about the Marina. Vice Chair Orlove had thought there was consensus to increase the rental rates. Mike Simon, Development Director, recalled there was no specific discussion, but it was part of the backup materials for the May meeting. The members were going to email Ms. Brooks and a decision was to be made at the workshop. The $16,000 was not a significant impact on the budget. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 23,2011 Chair Rodriguez inquired if the Board was in agreement with the increases. Chair Rodriguez, Ms. Ross, and Messrs. Holzman and Buchanan did not favor the increase at this time and preferred to consider them next year, while Vice Chair Orlove and Messrs. Hay and Karageorge favored an increase this year. The rationale for not allowing the rate increase was the Agency was still working at the Marina. A building would be demolished, and there were obstacles to development. Commercial fishermen would be affected, and there may be some displacement. Additionally, restroom facilities were still not available and arrangements had been made to use Two George's restroom facilities. Chair Rodriguez thought the Marina was a draw to the downtown and he preferred to wait another year before increasing rates. The Community Redevelopment Agency invested about $8.3 million in the Marina, including acquisitions, slip reconstruction, docks, pylons, fuel dock, website, insurance and payment for restroom facilities. With the entrance feature, a total of $10 million would be spent upgrading it. The last time the rates were increased was in 2006 when the Community Redevelopment Agency purchased the property. The current leases were made uniform which resulted in some patrons receiving a decrease while others received an increase. After brief discussion, consensus was reached to forgo the increased rent on the boat slips. Ms. Brooks would remove the funding from Project Fund Revenue and Potential Projects Project Fund Contingency line item reducing the $100,000 by $16,000. Chair Rodriguez also noted the Ruth Jones Cottage Interior had a contingency of $27,169. Ms. Brooks explained staff does not have an interior design or a bid. Chair Rodriguez expressed concern every time the project was discussed, it cost more. Mr. Simon clarified there was discussion of the three options for the interior at the June or July meeting. REG priced Option 2 and the design came in, without bid, at up to $255K. Since then, staff met with City planning staff, and they had concerns about enclosing the cooler, the roof and site issues. The items the City wanted would increase the cost and staff wanted to ensure they could cover the items. If the Board wanted the tenant to pay 100% of the interior build out, they could. At this point, the Board directed staff to find the $254K for the interior build out, and the contingency funds of $27,169 would be in addition to it. Ms. Brooks would remove the money from project fund contingency. Further discussion followed the changes were aesthetic and not health and safety related. The original amount allocated met the Code and development guidelines. Mr. Simon responded the original $254K was allocated for the inside of the building becoming a restaurant. There were items that protruded through the building that were not contemplated in the current design and scope. The building had to have a grease trap; FP&L wants a transformer; and a gas line was needed. There was agreement to add the $27K for the Ruth Jones Cottage. The Executive Department membership dues increased due to the Urban Land Institute fee being moved from the Planning Department budget to the Executive Department. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 23, 2011 Career development expenses increased due to moving certifications to the Executive Department. Delivery services and office supplies were reduced. Postage remained the same, and all of the postage costs were consolidated into two components. One was marketing and the other was under the Executive Director. Machine rentals for the postage was included. Cell phones were for Ms. Brooks only. Subscriptions, book and publications were the same, and equipment costs were $1,000 in case Ms. Brook's computer needed to be replaced. The Finance Budget had an overall increase of 23% because retirement costs were added back in. It included the Finance Director and assistant's salary. Bank fees increased slightly and were slightly offset by interest income. Conferences and travel remained the same. The Budget Workshop was higher because Ms. Harris thought the Agency would be charged for the facility for the meeting, but they were not. She could deduct $250 from the budget item. Membership dues, delivery services, office supplies and career development, which had the certifications, had no changes. Ms. Harris had a need for a cellular phone and there was no objections to her receiving a phone. The Planning Budget reflected a reduction because Ms. Brooks' items were moved to the Executive Department budget. Accordingly, all the line items in the budget were reduced, except for office printing costs, which were planning related. Mr. Simon is FRA certified and will maintain the certification. The Marketing and Business Development Budget increased slightly due to the retirement benefits being restored. This budget included salaries for the Marketing Director, and half of the Events Marketing Director and Economic Development Assistant. Those salaries were split, as were benefits. Marketing collateral, membership dues, office supplies and postage was reduced; however, cell phones, subscriptions, conferences, meetings and seminars increased because the FRA conference was added for Ms. Walsh and Ms. Biscuiti. The Indian Market was separate from this Budget. Ms. Biscuiti explained the event was paid from the Economic Development Budget. Going forward, if successful, they would be included in the Marketing Budget effective January 2012. It would be covered under project funds. There were no comments regarding the Special Events Budget and no changes in the Insurance Budget. The Professional Services Budget reflected a reduction of 8%. The Buildings and Grounds Budget had a 3% reduction. The contracts and agreements for maintenance come up for renewal. These were for maintenance costs of vacant lots. In addition, the new marina site was situated on City property and the City asked the Agency to pay for the maintenance of the tower feature site. Glenda Hall was working on figures. Ms. Brooks explained staff created a contract database when the contracts were coming due. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 23, 2011 The Marina budget increased 20% based on this year's experience regarding fuel sales. The ITS budget increased 3% each year. The Contingency Account had a 67% reduction. There were no questions on the Salary Schedule. The Project Fund Operating Expenses was reduced by $16,000 in the contingency line item. Professional services decreased and legal expenses increased. The design assistance funds were used for the continuing contract with REG. Other firms would also have the opportunity to work. It was noted REG was not specific to architecture. They could provide engineering and survey services. Capital Outlay had been discussed earlier. The HUD grant was for the Schoolhouse Children's Museum windows and the City recently requested the Agency provide the first draw down. The next request would be made the beginning of the next fiscal year. The Economic Development Programs were reviewed and there were no questions on the budget. The Project and Programs Project Fund Summary reflected no funds were budgeted for Community Redevelopment Agency Police in the next fiscal year. Police support was included in the budget for special events. Vice Chair Orlove noted there was a concern some events, such as the Heritage Fest, were not funded. It was his understanding Ms. Brooks and Ms. Biscuiti would be working with some of the groups who were funded in the past to incorporate those activities into programs slated for the next fiscal year. Ms. Biscuiti explained the Ocean Avenue Concert Series would commence in January, and the February concert would be in honor of the Heritage Fest. Libby Stroud, an advocate for the event, was amenable to the idea and agreed to work with Ms. Biscuiti on the project. There would be a rhythm and blues group, and vendors would be present. Mr. Hay commented normally the City Commission does not go back on the millage rate, but if they did, there would be almost $300,000 left over. He would like to see the Heritage activity always occur. It has been a historical event for a number of years. Ms. Biscuiti and Ms. Stroud had the opportunity to continue the event. Plan B, depending on if the Commission decided to use the 7.4 millage rate, would also provide the opportunity to continue the event at the amphitheater. He thought the Heritage Fest had a stigma of being a private event. By calling the concert the Heritage Fest, it could help change that perception. He attended the event in the past and wanted it to be a community event. Ms. Biscuiti commented the Community Redevelopment Agency events are multi-cultural, and hoped it would continue. Chair Rodriguez commented bringing the event to the amphitheater would create excitement on Ocean Avenue. He noted the City Commission, last year, lowered the millage rate at its second hearing. Mr. Hay thought even a 7.2 millage rate could free up monies. Ms. Brooks had two projects they would discuss and the Board could 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 23, 2011 allocate funds for events on Ocean Avenue. The event appeared to be a good compromise. Ms. Harris reviewed the Debt Service Fund. The debt service for the year was $2.5 million. Although some loans would drop off, the financial advisor structured the debt at a flat rate through to the end of the bond. Ms. Harris also revisited the General Fund Other Insurances item. There were some leave payouts this year. If two individuals left, they would have to payout about $20,000. The unemployment that would have to be paid expired at the end of the fiscal year and it was contained in insurance because it was unknown which individuals would be leaving. Ms. Brooks explained some direction had been given to staff in June about projects the Board wanted. She explained the activities needed to be focused on the downtown. The CRA does not have a lot of money and events have to be in the downtown as capital projects to obtain the best result. Discussion followed about the Ocean Avenue Pirate Event funding of $45,000. Ms. Brooks explained it was a two-day event on Ocean Avenue from Seacrest Boulevard to the Marina. Ms. Biscuiti explained the event was held in 2006, but they were unable to continue it. The event was well attended. Attendees paid admission and individuals stayed the entire day. The Board had wanted a signature event and staff was proposing this be the signature event. The event was proposed to start at the Amphitheater and in time, expand to the Marina. The event was formerly held at Intracoastal Park. The Boynton Beach High School shop teacher had his students build and install the sets. They took much pride in the sets and watching individuals use them. Staff would encourage the businesses along Ocean Avenue to have specials and have some type of pirate theme and they would also seek sponsors. If the event went beyond the $45K, it would be brought to the Board's attention. The High School would also be involved with the event, which was proposed for October 2012. Most of the monies would be paid before October. The same would occur with the Downtown Open Market. The Sunday Family Fun Day was an event at the Marina. It would involve the merchants and boats. Two George's Restaurant committed to the event and other restaurants will be incorporated. It would be a great energy builder for the downtown. The Mayor's Walk had $1,000 allocated but normally was completely sponsored. It was possible the funds would roll over if they were not used. Ms. Biscuiti explained they were continuing to build on the event and Ginny Shea, from the City was also working on the event. The $1,000 may be needed as staff had to pay for police services at all special events. Chair Rodriguez opened the public comment. Captain Karen Stroshein-Pratt, 128 Neptune Drive, Hypoluxo, explained she was a lifelong resident and had a 51-foot charter boat. She wanted the Marina to be beautiful and thanked the Board for not raising the dock rates because they are struggling. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL August 23,2011 Business was down and many businesses were going out of business. She loved the entrance and pointed out there was nowhere to place recyclable materials. Chair Rodriguez explained staff would address the recyclable issues. Libby Stroud, 132 NE 13th Avenue, advocated for having the Heritage Fest on a Saturday. She agreed with holding the event on Friday and collaborating with the Community Redevelopment Agency, but hoped to have something additional on Saturday. It was a free event for everyone to celebrate their heritage. She explained if the Mayor's Walk did not use their allocation of $1,000, they could use the monies. She has been attempting to obtain sponsors and requested putting the Heritage Event back in the budget. Heart of Boynton Matriarch, Gertrude Sullivan also supported the event. Chair Rodriguez closed public comment. Ms. Brooks would present two projects for consideration to the Board at the September meeting. Mr. Hay commended Ms. Stroud for advocating for the Heritage Event and soliciting donations. He had heard good things about Ms. Stroud and suggested she be the liaison to work with the Community Redevelopment Agency and City on the project. Chair Rodriguez agreed. There being no further business to discuss, the meeting was properly adjourned at 7:20 p.m. &W~~/Llrvu-~r. Catherine Cherry Recording Secretary 082411 9