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Minutes 08-07-14 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BUDGET BOARD BUDGET MEETING HELD AT INTRACOASTAL PARK CLUBHOUSE 2240 N. FEDERAL HIGHWAY, BOYNTON BEACH, FLORIDA ON THURSDAY, AUGUST 7, 2014, AT 6:00 P.M. PRESENT: Jerry Taylor, Chair Vivian Brooks, Executive Director Joe Casello, Vice Chair Tara Duhey, Board Counsel Buck Buchanan Michael Fitzpatrick Woodrow Hay Mack McCray David Merker 1. Welcome by Board Chair Jerry Taylor Chair Taylor welcomed all to the meeting at 6:12 p.m. 2. Invocation and Pledge to the Flag Mr. Hay gave the invocation followed by the members reciting the Pledge of Allegiance to the Flag. 3. Work Plan — FY 2014 -2015 Vivian Brooks, CRA Executive Director, distributed a handout of the Marina Master Plan from six years ago. She commented the Marina is the City's crown jewel and Boynton Beach was the only City to have such a large, varied marina in the downtown. The CRA was completing the final phase and would then embark on the Town Square. Mike Simon, Assistant Director, commented staff has been ambitious. Many plans were coming to fruition and many accomplishments had been achieved. The CRA budgeted $700,000 for the Marina Open Space Construction project for 2014/2015. In 2006, the CRA purchased 24 slips at the west end of the Marina. In 2007, they purchased the fuel dock. In 2008, the CRA approved the Marina Master Redevelopment Plan. The Harbor Master Building was almost finished and the open space portion of the Marina had been deferred to a later date. The budgeted amount would complete that portion, the traffic realignment from NE 6 1 to Casa Loma, and install a tropical landscaped area for the public and customers of Two Georges, shaded seating and the Marina tower. The plans were construction ready and Ms. Brooks commented only a small portion of the permit fees were paid. The full amount would be paid when the contractor was obtained. MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 2014 Chair Taylor noted the Board had voted to move forward with the project. (Vice Chair Casello arrived at 6:20 p.m.) The NE 4th Street Enhancement and Parking Lot project had a budget of $211,617; however, only $75,000 was proposed to come from the 201412015 budget year. The balance was rollover funds from 2013/2014. These improvements would enhance the area for visitors and restaurant patrons and was land the Florida East Coast railway gave the City which has bollards around it. It was not for parking. The CRA would improve the area and would make improvements for on- street parking. The Dewey Park Stage and Lighting Enhancement project had a proposed budget of $25,000. Mr. Simon explained this was a great feature to attract people to the eastern portion of the downtown. It is dark at night and artistic lanterns were added to the trees, but more were needed. A small stage was proposed for future park activities. Mr. Fitzpatrick inquired about the nearby dumpster and Mr. Simon responded the dumpster was on City property and Public Works would fence it in. The proposed budget for the North Federal Highway /FEC Corridor landscaping improvements was $132,775. Staff wanted to enhance this corridor by replacing dead plant materials from the edge of the CRA boundary near the Peninsula project. Acquisition of key parcels for Ocean Avenue and the Heart of Boynton was reviewed. The proposed budget was $882,024 and an image of the updated Heart of Boynton Plan for the Cottage District was viewed. The CRA had additional property on NE 4th and 5 th Avenues to the north and east and Seacrest Boulevard to the west. The Cottage District would be a focus. The CRA had approved funds in the 2013/2014 budget for lighting on Ocean Avenue from Seacrest to Dewey Park. There are dark spots along the Avenue which staff would address by adding up /in- lighting, twinkle lights and additional light poles on the western end. It would create a holiday feeling. The proposed photometric plan was included in the meeting materials. The total amount to be budgeted was $200,000. Combined with rollover funds from last year, the total amount was anticipated to be $256,393. Ms. Brooks explained the Arts District was seeking a formal designation from the City and the CRA was carrying over the funds from last year for a sign, if the District was approved. The funds would not be released until approved. It was noted that area had experienced some flooding, which Ms. Brooks believed was being addressed. Chair Taylor commented the Utility Department indicated the system was designed to handle the flooding, but did not and Mr. McCray commented he would look into the matter. Ms. Brooks advised the recommendation for the Town Square Project was $500,000. The Treasure Coast Regional Planning Council would issue a formal report on the area and there were preliminary steps that can be undertaken to develop the RFP. They would also submit plans to the CRA without the Old High School and some pro -forma 2 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 2014 costs. She anticipated the plans would return to the Board in about two months and the uses from other nearby buildings that would no longer be there would have to be accommodated on the site where the Old High School is presently located. Mr. McCray pointed out he was present when the Strategic Plan was developed prior to the Treasure Coast Regional Planning Council plan and the items discussed then were not included in what they presented. He requested the Planning Council incorporate those uses. Ms. Brooks explained the direction given to the Treasure Coast Regional Planning Council was to offset the cost of a new City Hall and Police Station by using the current City Hall site and the prior plan did not include those items. Mr. Hay inquired if there would be another community meeting. Ms. Brooks explained what the Planning Council provided was based on community input. Mr. Merker expressed concern if the CRA lost the lawsuit regarding development of the Old High School and Ms. Brook clarified Attorney Cherof had previously indicated there was nothing to preclude the Board from planning to construct something at that site. Mr. Hay pointed out the Planning Council should incorporate the citizen's comments and the CRA would vote on it. Mr. Buchanan also inquired if the Planning Council took into account what was discussed and voted on by the City Commission to move City Hall and the Police Station. Ms. Brooks replied the plan presented was the direct result of the Strategic Plan and decisions made by the CRA Board and the City Commission to move City Hall and the Police Station. The area would be the western anchor for the downtown and would be a catalyst for development. There was no funding for the Ocean Breeze East development because it will be constructed by a private developer. Ms. Brooks commented the CRA already issued an RFP for the project. The proposed budget for Plan Updates for the Federal Highway Corridor, Ocean Avenue, Downtown Master Plan and Boynton Beach Boulevard was $160,000. Staff sought to consolidate the plans into one for easy reading for the development community. This would be done in concert with City and CRA staff and an outside consultant. The Sara Sims Park Playground equipment had a proposed budget of $25,000. The City had allocated $75,000 in Community Development Block Grant funding, but did not have enough funds for rubber mulch. Ms. Brooks set aside the funds so youth at the playground would not be hurt if they fell. The Woman's Club Renovation had a proposed budget of $50,000. The building was one of two properties on the National Historic Register. The Woman's Club was applying for a grant to cover severe damage to the windows and doors. The grant was for $100,000 and required a 50% match. Ms. Brooks emphasized the importance of the property, which is located on Federal Highway. She did not want to lose another historic property, 3 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 2014 The Woman's Club had a five -year capital campaign to raise $500,000 to repair the entire building, including floors, doors and improvements to meet the Americans With Disabilities requirements, and more. Chair Taylor agreed on the significance of the building and commended the Woman's Club for trying to fundraise on their own. Ms. Brooks responded the CRA provided a small Fagade Grant and the Woman's Club was repairing a few windows. Mr. McCray favored the request and inquired when the Woman's Club would find out if the grant was approved. Barbara Wineberg, Treasurer, Boynton Woman's Club and Co -Chair of the Historic Preservation Committee, confirmed they were trying to spearhead a five -year plan to restore the building to its full potential. She explained work on the windows was ongoing, but it was an expensive undertaking. The grant would allow them to finish the project and make the building structurally sound as the building has over 20 doors and 16 wood -frame windows, most dating back to 1925 when the building was constructed. The roof was replaced in 2008. In the five -year plan, they sought to incorporate a maintenance fund and Ms. Wineberg anticipated it would be another 100 years before they would request more funds. Plan B was to continue with the fundraising initiative and continue to repair as many windows and doors as possible with the funds they raised. If the grant was awarded, they could start the project in July 2015. Vice Chair Casello inquired if the CRA could match funds up to $50,000 if they did not get the grant. Ms. Brooks explained it could be accomplished via motion. Staff could keep the money in the budget, and if they do not obtain the grant, the money was still there. Mr. Fitzpatrick expressed concern this would be a recurring expense. He did not object to the request, but was concerned there may not be funds each year to subsidize the repairs. Ms. Wineberg explained that was why there was a five -year plan and the repairs were an urgent need. The CRA would not be a funding source. Mr. Merker understood if all went well and they had the funds, the main repairs would be addressed and they could make repairs as needed thereafter. The proposed budget for the Business Incubator Support was $20,000. Ms. Brooks explained the Community Caring Center requested $100,000. They operate the Secret Garden Caf6 which is a restaurant incubator, but the CRA has not really worked with them and thought they should fund a smaller amount, review the quarterly reports and see how it goes. She also recommended making the grant a reimbursable grant. Mr. McCray inquired if the incubator does well, whether they could request more funds and Ms. Brook replied it was up to the Board. The incubator was for individuals who want to learn the restaurant trade. It has a commercial kitchen, helps food trucks, caterers and it teaches users about licensing, business plans and how to operate a restaurant. Mr. Merker explained they also use the restaurant to feed the poor and the theme and purpose was meaningful. The restaurant was not open regular hours. It is operated by the Community Caring Center which the City funds through Community Redevelopment Block Grant funds. They had 4 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 20 14 received $65,000. It was the economic development component of the Community Caring Center. The budget proposed for the design of Boynton Beach Boulevard was $226,610; however, Ms. Brooks explained the funds were rolled over from last year. This was a project that would remain visible and funds for it should remain in the line item. The project was funded last year for $365,000 and not all the funds were spent. The $226,610 was enough to get the project started. Mr. Merker noted the Treasure Coast Regional Planning Council recommended narrowing the street which would include widening the sidewalk and increasing the landscaped area. Staff also sought to install the power lines underground. Mr. Hay inquired if staff spoke to the owner of the property on the northeast corner of Boynton Beach and Seacrest Boulevards. Ms. Brooks responded they had and the owner was not interested in selling. If she was being held to a percentage over appraised value, the CRA could not acquire the property. Ms. Brooks explained the 211 Renovation Grant was proposed for $200,000. She considered having the developer of the Cottage District move the home there to save it, but rethought the matter and decided to leave the home at the location. It is an old home and she proposed to do some maintenance work on it and additional work during the period they connect Town Square. They could attract an active user. It was not likely the investor would make the upgrades given the current situation, so staff would. Ms. Brooks saw the building having a five -year use, and they needed to activate the space. She suggested issuing a RFP and thought the budget would be adequate to make the home structurally sound, including landscaping. The land was valuable for a developer but it was important that home remain. After five years, if the Town Square flourished, there were two individuals who would combine the land and create a development and the house would be moved. Vice Chair Casello inquired why the CRA makes purchases, but does not maintain them. Ms. Brooks explained they maintain the yard and painted the house. It was actively marketed in alternative lifestyle, high -end, expensive magazines. Ms. Brooks explained the proposal was to rent the building, but not collect rent in order to avoid a tax liability to the Agency. All that would be required is to cover the liability insurance. Staff sought to make the improvements so the home could be rented. This would include a handicapped restroom and ramp. Mr. Merker and Vice Chair Casello thought if the purpose was to develop the area, and the property would be moved, it was a waste of money. Vice Chair Casello suggested using the home as a CRA office and subleasing the current office. The members further discussed it was important to create activity on the Avenue. The parking lot and walkway was being installed and they were adding street lighting. The home, when used, would act as a catalyst for development and give a feel to the Avenue. Ms. Brooks did not want to demolish the building and recognized an infusion of money was needed to create activity. 5 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 2014 Mr. Fitzpatrick commented every art gallery he has seen did not have anyone in it and he did not understand how art galleries generate traffic. Ms. Brooks explained the building could be for any use and currently, art bars were popular. Mr. McCray explained the current CRA office was in the Heart of Boynton. He suggested leaving the funds in the budget and addressing the use at a later time or in a workshop. Chair Taylor agreed with Mr. Fitzpatrick and pointed out $200,000 was a lot of money, but the City paid that kind of money to eliminate crack houses. He favored leaving the funds in the budget. Ms. Brooks explained it would be expensive to create an office to Code. Staff was not proposing to add any square footage, only address the air conditioning and restroom. The Economic Development Grants were a continuation from last year. This encompassed the Commercial Facade Rent Reimbursement, Commercial Interior Build - Out Assistance, Commercial Rent Reimbursement, and Commercial Construction Project Incentive Programs. The budget proposed was $150,000. The Marketing Budget Work Plan had a proposed budget of $120,000. Vice Chair Casello suggested when giving grants to developers for apartments or homes, they work a deal with the golf course to help promote it. Individuals could receive a discount. Special Events had a proposed budget of $321,000 and the CRA was adding 11 new events, some of which were St. Patrick's Day, Earth Day, and Ocean Avenue Eats events. It was noted the CRA no longer handles the Fourth of July festivities. Ms. Brooks commented the St. Patrick's Day event would actually be held the day before as many people go to Delray Beach for St. Patrick's Day. 4. FY 2014 -2015 Budget Overview Susan Harris, Finance Director, reviewed the Summary of Assessed Property Values & Tax Increment Finance (TIF) Revenues and explained the chart shows the values from 1989 to present. This year the assessed property values were at $1 billion. There were three geographic expansions of the CRA which added to the assessed values and TIF revenue. The TIF estimates are based on the CRA property values, less the base year value, and were contingent on the City and County millage rates. Ms. Harris anticipated receiving $3.1 million from the County and $5.2 million from the City. She backs funds out because when the tax rolls are certified, the values decrease and the certified difference must be returned to the City and County. The TIF revenue this year increased 15% from last year. Due to the Marina and General Fund, the CRA revenue for 2014/2015 would be $9.1 million. The funding available for projects reflected the debt service, operating, Marina expenses, and other payments that must be made. In the new budget year, the CRA would have $2.7 million for new projects. 6 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 2014 A detailed Project Fund Revenue and Potential Projects chart was reviewed. There were project rollovers and multi -year projects for which funds had to be carried over to complete. The Marina Open Space project did not have rollover funds, so the $700,000 would come from the $2.7 million allotted for New Project revenues. There was $175,000 in rollover funds from the Old High School demolition that did not occur. As part of the Town Square project line item, the recommendation was to reallocate those funds and add $325,000 for a total project budget of $500,000. The Plan Update project budget encompassed new projects, plan updates for the Federal Highway Corridor and Downtown Master Plan. Ms. Harris explained the 211 Renovation project had $186,000 in rollover funds and more would be added to it for a total of $200,000. The North Federal Highway /FEC Corridor had $50,000 in rollover funds and $82,775 would be added for a total of $132,775. The Planning and Community Workshop had $30,000 and would cover all the community, Town Square, and public charettes. Mr. Buchanan inquired if there was a plan for developers to follow along the North Federal Highway /FEC Corridor and Ms. Brooks responded there was. Ms. Harris explained the budget for the Business Incubator was $20,000 and the Woman's Club had $25,000 in roll -over funds and $25,000 would be added totaling the $50,000. Ms. Harris explained the $882,024 for acquisition of new parcels on Ocean Avenue and the Heart of Boynton was comprised entirely from rollover funds. Funding for Phase II of the Marina was also from $326,000 in rollover funds and would address the Harbor Master Building when completed. The Economic Development Grants budget was $300,000 this year and included $150,000 in rollover funds. Site Work and Demolition was budgeted for $100,000 which was a standard operating expense. The Contingency line item had a proposed budget of $75,000 in case projects ran over budget. The entry signage at North and South Federal Highway had a proposed budget of $165,850 of which $65,850 were rollover funds. Staff recommended a budget of $150,000 for Legal work on projects. The Tree Lighting line item had a proposed budget of $256,393 of which $56,393 were rollover funds. The Wayfinding sign for the Arts District had a proposed budget of $25,000, all of which were rollover funds. Design and Engineering was proposed for $75,000 and Surveys and Appraisals were proposed for $50,000. The proposed budget used all of the new revenue available for new projects. Vice Chair Casello inquired about the parking on NE 4 th Street and did not see a need for so much parking. Mr. Simon explained they have an event once a month, and events like the Pirate Event. The area was an entrance to the downtown and it languished. The lot would be resurfaced and greened. There was lots of traffic due to Hurricane Alley and the locksmith nearby. The project was as much for parking as it 7 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 2014 was for beautification. There were no plans for the commuter rail train station by The Little House Restaurant at this time. The Capital Improvement Plan was reviewed showing the expenditures year -to -date, balance rollovers, and staff recommendations for next year's budget. It was noted the Food Truck Invasion would not be shut down due to the City's regulations. 5. Review of General Fund, Project Fund Debt Service A General Fund Balance Analysis reflected how staff allocates the unassigned general funds. Ms. Harris did not anticipate there would be any unassigned funds this year and would have to wait until the audit was done in January. If there were any unassigned funds, the Board would make a recommendation how to allocate them. An organizational chart was reviewed. Ms. Brooks was proposing less staff. The administrative assistant and development director were vacant and unfunded positions. Ms. Brooks clarified there were staff title changes. The Finance Assistant was changed to Finance Specialist. The Development Services Specialist was formerly the Administrative Services Manager and the title change was to reflect the duties they perform. The Marketing and Business Development Specialist was formerly a Business Development Specialist, and the Special Events Coordinator was formerly a Special Events Director. The Agency was Director heavy. The full -time position Marketing, Event and Business Special Assistant was made part time and she reviewed the salary classifications. All the employees were at the mid -point except the Special Events Coordinator who would increase from $40,000 to $55,000 because she was performing the duties of the Special Events Director position. Ms. Biscuiti's salary was $70,000 and that position would revert to the mid -point of $55,000. More details on the salaries, positions, taxes, and benefits were reviewed. The CRA employees were under the City's benefit and retirement benefits. The part-time position had no benefits. A three percent merit pool was added and personnel costs as a percent of the General Fund, was at nine percent, was very low and was the same as last year. The CRA has two retirement programs: one was an employer match of five percent of the employee's salary, and the second was non - contributory of 15 %. Chair Taylor commented the City Manager decided how much each employee received. The City had performance management reviews which went by the wayside. Lori LaVerriere, City Manager, explained City employees had not received performance evaluations for the last six or seven years. They are common, but the City cannot afford them. The three percent the employees received was a cost of living increase. The General Fund Summary Sheet showed there was $9.1 million in revenue. The TIF increased 15% so overall, revenues increased three percent. The administrative departmental expenses increased two percent. Some special event items were moved to department level administrative costs so that line item had a two percent increase. Other items the Agency had to pay included insurance, professional services, building MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 2014 and grounds, Marina operations, Information Technology and Contingencies which increased five percent. The insurance rates increased because the Agency had to pay insurance on the new Marina buildings, and the parking lot. Professional Liability increased $10,000 for a document management system. There was $10,000 for a leased vehicle to be used to move special event equipment because it was damaging the CRA employees' cars. A magnetic sign would be used and the vehicle would be a mini -van type vehicle. Overall, the General Fund had a 4% increase. Ms. Harris explained the Board's operating expenses increased and there was an increase of $600 for cell phones for the non - Commission Board members. The Executive Department had an increase of $31,000, or 12% mainly due to the potential merit and retirement increases. The part -time position was shared by Ms. Brook's department, Marketing and Special Events. Mr. McCray inquired if there were enough funds to cover seminars. Ms. Harris explained the line item was increased by $320 and about $8,300 was budgeted last year. The Finance Department had an increase of $22,000 or a 10% increase. The Planning budget was reduced $8,600 due to community meetings being moved into the project fund. The Marketing and Business Development Department decreased $11,651. Special Events was reduced by $16,967, the insurance budget increased by $9,800 or 8 %. Professional Services increased by $10,000 or 5 %. Buildings and Grounds increased by $77,673 or 20 %, the Marina budget was flat, and Information Technology increased by $1,610 or 3 %. It was noted the Agency saved money by using the City's ITS Department. The Contingency Account, based on last year, remained unchanged. Ms. Harris has to track rollover funds each year and the total project fund was $6.2 million and she reviewed the operating expenses for the project fund. Mr. Hay inquired why there was an increase in legal services. Ms. Harris explained she recommended increasing the budget because they had to pull extra money from other sources. They pay $40,000 for counsel to attend the CRA meetings. They review projects and the bulk was billed at an hourly rate of $225, sometimes less, depending on who was working on the project. Mr. Merker thought it could be less. Staff commented human resource issues were labor intensive and Counsel had also reviewed the West litigation, property purchases, and there are projects that require their review. The Capital Outlay budget reflected a rollover of $182,000 and Ms. Harris reviewed the projects. The Economic Development programs had $150,000 in rollover funds comprising the total budget. The marketing incentive program had a 19% increase and the Direct Incentive Funding Agreement increased by 26 %. The Project and Programs total budget was $421,000, having an increase of 24 %. It was noted the Heritage Trail Creation and Online Map was completed. 9 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA AUGUST 7, 2014 Vice Chair Casello inquired when the CRA would sunset. Attorney Duhey was reviewing that information. The statutory language was not clear and she would have it for the next meeting. The Debt Service Fund did not increase. The Aggregate Debt Service for the remaining bond and loan payments was $2.3 million and would be paid down by 2025/2026. M otion Mr. Hay moved to approve the budget. Mr. McCray seconded the motion that unanimously passed. The Board commended staff on an excellent job. 6. A(Ijour There being no further business to discuss, Chair Taylor adjourned the meeting at 8:16 p.m. &LU1AJ, &�d Catherine Cherry Minutes Specialist 081814 10