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Minutes 06-12-18 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH FLORIDA ON JUNE 12, 2018, AT 6:30 P.M. PRESENT: Steven Grant, Chair Mike Simon, Executive Director Christina Romelus, Vice Chair Tara Duhy, Board Counsel Joe Casello, Board Member Justin Katz, Board Member Mack McCray, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:31 p.m. 2. Invocation Board Member McCray gave the invocation. 3. Roll Call Roll was called. All present 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda None. B. Adoption of Agenda Motion Board Member McCray moved to approve the agenda. Board Member Casello seconded the motion that unanimously passed. 5. Legal None. 6. Informational Items and Disclosures by Board Members and CRA Staff:. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Chair Grant disclosed he spoke with David Katz, a lobbyist for Shovel Ready, Item 13. C, and that he (Chair Grant) also represents Scott Maslin on items in West Palm Beach for Items 10 H. and I. Board Members Casello and Katz had no disclosures. Vice Chair Romelus spoke with David Katz and Attorney Tom Carney regarding Item 13.C. Board Member McCray spoke with David Katz. 7. Announcements and Awards A. Movies in the Park Mercedes Coppin, Special Event Coordinator, announced the last event of 2017 was June 1St featuring Jumanji: Welcome to the Jungle. About 115 people attended and during the pre-show, staff showcased four local CRA businesses including Shearology Salon, Imperial Maid Service, Two Georges and Miller Time Fishing Charters. B. Music on the Rocks Ms. Coppin announced the last 2017 Music on the Rocks event was on Friday, May 18tH Due to rainy weather, they moved the event to the Historic Woman's Club of Boynton Beach. About 325 people attended the concert featuring Completely Unchained, a Van Haien Tribute Band. The event survey reflected 51% of attendees were residents and 19% came to the City specifically for the event. The final Music on the Rocks event will be on Friday, June 15th featuring Wonderama, a top 40's pop band performing at the amphitheater from 6 to 9 p.m. The Food Truck Invasion, cocktails and beverages will be available. Parking is free. Board Member McCray questioned what would happen to these events during the Town Square construction and learned it will be discussed with the budget proposal staff prepared. It is the Board's decision how to move forward with the event. 8. Information Only A. Marketing and Business Development Campaign B. Public Comment Log C. Public Relations Articles Associated with the BBCRA 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 9. Public Comments Reverend Bernard Wright, CEO Bernard Wright Ministries, 713 NE 2nd Street, commented some residents had recently passed away and he requested a moment to ask God to comfort them. Rev. Wright explained there was a great Robert E. Wells Love Fest this year, he, his ministry and supporters held and he thanked the Board and City staff for their support. He noted the event has been held for the last four years. He requested funding for the Robert E. Wells Love Fest be included in the budget, as the event has to do with crime prevention, redevelopment, information and education dealing with his people from a historical point of view. The event is historical and the accomplishments of Robert Wells are acknowledged each year on February 7 t Rev. Wright commented they are protesting the Recreation and Parks Department. He commented he does not want to sue the City as he is a taxpayer, but asserted for eight years, black children were being deprived from attending a taxpayer funded recreational center. He explained he has an attorney who is prepared to litigate and he will continue to protest. He expected litigation would be on a judge's desk and in Federal Court by Friday. Sherry Johnson, Community Caring Center, 145 NE 4th Avenue, announced they are holding the 2nd Annual Culinary Job Fair, which many of the Board members had previously attended and several of them pledged some type of assistance to drive attendance at the Institute. She dropped off cut cards and would be working with the CRA. They have a great marketing plan that includes working with Career Source and Michael Corbet. Anything the Board could do to promote and market the Institute would be appreciated. She noted job recruiters want to return to the event, which is on August 7th, from 2 to 6 pm at Benvenuto. Susan Oyer, 14 SE 27th Way, suggested the CRA improve and add funding to advertise CRA events as she thought it was lacking. There are outstanding movies and concerts at the beginning of the season that no one knows about and then events lag throughout the rest of the year. She also commented the City needs more garbage cans and cigarette dispensers as the Downtown is getting dirty. Dwayne Smith, 10163 44th Avenue, commented he is on the kids' side. He requested the Board contemplate how youth are feeling this summer who could not attend some of the summer camps. He questioned if the Board was doing all they could to help kids of all classes. In District II, kids whose parents cannot afford the camp see other kids enjoy themselves at the camps. Non-camp youth cannot use the restrooms or get a drink of water. He commented residents pay taxes to keep the buildings open. He thought, as human beings, they are better than this and they should care about underprivileged youth. He urged the Board try to find a way to allow underprivileged youth to participate in summer programs. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 A man named Tory, residing at 407 NE 17th Avenue, was concerned about the Carolyn Sims Center. He was at the Center protesting yesterday with 20 kids and 5 parents. The kids want to go and play with schoolmates and they have to tell them they do not have enough money to attend. He questioned why they could not interact with the summer camp like they once did when it was hosted at the Carolyn Sims Center. He commented Amy Blackman, Recreation Superintendent, advised a 17-year old with her child could not go into the Center to change the child's diaper. He questioned what youth should do from 7 a.m. to 4 p.m. There is also summer camp at the Hester Center so the youth cannot go there. Youth had no access to free lunch in District II unless they walk way over by Poinciana. The youth see the free lunch workers pull up and give the meals to camp youth and wonder why they cannot get free lunch. He reiterated he was very upset about the Carolyn Sims Center which is only open to the public for one hour. He commented he would try to vote to remove the members who approve of this policy and bring other voters to do the same. Board Member Katz noted this issue was raised several times and he questioned whether the solution to the camp issue was to sue the City to prohibit children who could afford to go to the camp from going. He thought a better solution was to hold a fundraiser or solicit contributions to create a scholarship program. He recommended trying to set up a fundraiser and he pledged $1,000 of his personal funds if they go about finding a solution in a constructive manner. Rev. Wright's lawsuit, which would prohibit paying children from attending a children's summer camp, produces losers. The City wants a win-win situation, which is those who can pay go, and for those who cannot, through charitable donations, are afforded the opportunity to go. It would not kick children out of a summer camp. He did not understand how kicking kids out of a summer camp to allow other kids in is a win-win solution. He implored Rev. Wright not to sue the City or CRA as it would waste taxpayer resources defending against a meritless lawsuit, and to pursue charitable contributions. He reiterated again his pledge of $1,000 from his personal funds. He has heard threats for weeks and weeks, and if Rev. Wright wants to exercise his right to sue, it is not a good solution. He suggested finding people to help underprivileged children instead of attacking and punishing youth that are attending the camp. He understood the cost was $578 for the entire summer, which was 40 to 50 days of daycare at approximately $15 a day. Rev. Wright responded he was trying to find a solution and appreciated Board Member Katz's offer to contribute funds. He asserted the discussion was about 20 regular children from the neighborhood that, with taxpayer money, are showing up at the pool and the Center throughout the school months. They are the ones who were left out, not the youth who should not have the potential right to go freely and access it. Earlier in the day Rev. Wright counted 29 white faces and 5 black faces. Another group had 18 white faces and 3 black faces, and another group had 18 white faces and 2 black faces. He assumed they were from Hypoluxo and West Boynton Beach, not the Heart of Boynton and the doors are closed to the community's youth. He asserted this was ongoing for 8 years. Rev. Wright questioned how many youth were now in juvenile hall or slinging dope in the streets because they had nowhere to go and contended this will continue to occur. He 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 requested the City open something at another complex so the community can attend or having more staff so they do not have to interact with the children that are able to pay the $578. There are still game rooms and places for youth. He further contended when children finished playing basketball, they used to be able to go into an air-conditioned room and use the rest rooms. He explained this is a community, not a part recreation or private daycare center run under an account. The regulations mean youth cannot interact with the public. He commented it is the taxpayers who maintain the programs; not the $578 fee that the 80 people pay to use the camps during the summer and spring break weeks. Rev. Wright explained his child walked across the street as a west walker and throughout the year, he would go to the Center and Rev. Wright would get to the Center on time. He noted there are parents who cannot get to the Center on time and the Center has great supervisors that watch the children until parents arrive. During the spring and summer breaks, they cannot do that. There is an officer program that does great with the children and there is a gardener. The children who go to the Center during the school year are in the street during the summer. He thought the amount should be reconsidered, but he stated this year, for some reason because he is an advocate, there was a mix up and his child could not go. He wanted to leave a door for the public, even if they have to hire more staff. He complained Amy Blackman, Recreation Superintendent, suggested using outside port-o-lets. He did not understand why a child could not use the building for the restrooms and for a drink of cold water. He pointed out the building was in the name of Carolyn Sims who raised many people and repeated he was not threatening the City, but a lawsuit was on the way. Board Member Katz commented it sounds like a threat and he suggested, as a member of the clergy, he work with the Coalition of Clergy. Rev. Wright responded he does not work with them and he is not a part of them. Board Member Katz explained the solution to the problem is finding people willing to contribute funds and donate for these children. Vice Chair Romelus thought a discussion about extending summer hours may be helpful and since the facility is open to the public from 4 to 5, it stay open to the public perhaps from 4 to 7 or 8 p.m. As a mother, she has concerns about the public accessing a facility while the camp is open. As far as the price tag, $500 for summer camp is minimal. She agreed with Board Member Katz to try to seek out individuals to have a scholarship fund to help parents with the tuition and as a policy directive, extend some of the summer hours. Board Member Casello inquired how many youth participate. Mr. Simon did not know as it is a city-run facility and a city-run program. The CRA has no decision-making power to extend the hours or pay for those hours. There are 80 youth in the program. Board Member Casello asked if they could review the item during the budget to create a scholarship. Sherry Johnson, Community Caring Center, explained the City has a scholarship program for summer camp. Each year when the City Commission reviews the CDBG 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 application, there is at least$10K for the program. There is a comprehensive CDBG Plan and a meeting Octavia Sherrod, Community Improvement Manager, calls each year to discuss the community's needs. She suggested reviewing the CDBG plan or adding more funds for more opportunities. Lori LaVerriere, City Manager, explained the City stopped funding the $10,000 in CDBG funds for summer camps and moved it to other social programs. She advised they have a program for summer camp administered through Palm Beach County. Rev. Wright is in the middle of the County application process. They assisted him in applying for his grandson as he came in late during the process. The money is spent within the first week as the programs fill immediately. She agreed $500 for the entire summer program was unusual. Board Member Casello asked if the applicants were first come, first served and learned they were and they fill with a mixture of residents and non-residents. She advised Mr. Majors would provide information the next day. Chair Grant requested at the next City Commission meeting, they announce where youth could access free lunches. He also suggested checking with the Children Services Council and Literacy Coalition about children's programs. There needs to be other organizations to help because the City cannot fully subsidize the program, and there are youth organizations they can work with including the Coalition of Clergy. Ms. LaVerriere thought it is a great opportunity for churches to help. Board Member McCray requested Wally Majors, Director Recreation and Parks, and Amy Blackman, Recreation Superintendent, be present at the City Commission meeting for the item. Board Member Katz agreed to research what schools in Boynton provide free lunch and breakfast. Most schools in the County will provide a free lunch or breakfast to anyone under the age of 18 every day all summer. All the individual has to do is show up. It is a federally subsidized program to assist those in need to receive the meals for free. Board Member Romelus agreed, but was unsure if the lunch was provided. She requested Ms. LaVerriere investigate opening up the Center for a few more hours each evening after camp and provide the cost. She favored obtaining proposals and prices. No one coming forward, Public Comment was closed. 10. Consent Agenda A. Financial Report Period Ending May 31, 2018 B. Finance Department Purchase Orders for amounts exceeding $10,000 for the month of May 2018 C. Approval of the Interlocal Agreement between the Boynton Beach CRA and the City of Boynton Beach for Funding Associated with the FDOT US1 Intersection Enhancement Project 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 D. Approval of Commercial Rent Reimbursement Grant Program in the amount of $10,800 for Tabre Enterprises, LLC d/b/a The King's Learning Center located at 101 NE 5th Avenue This item was pulled by Board Member McCray. E. Approval of Commercial Interior Build-Out Grant Program in the amount of $12,424 for Tabre Enterprises, LLC d/b/a The King's Learning Center located at 101 NE 5th Avenue This item was pulled by Board Member McCray. F. Approval of Commercial Facade Improvement Grant Program in the amount of $10,800 for Tabre Enterprises, LLC d/b/a The King's Learning Center located at 101 NE 5th Avenue This item was pulled by Board Member McCray. G. Approval of Commercial Construction Permit Grant Program in the amount of $1,150 for Tabre Enterprises, LLC d/b/a The King's Learning Center located at 101 NE 5th Avenue This item was pulled by Board Member McCray. H. Approval of Commercial Rent Reimbursement Grant Program in the amount of $15,000 for Grandma's Manufacture, LLC d/b/a Grandma's Treasures located at 1550 N. Federal Highway, Suite 1 This item was pulled by Board Member McCray. I. Approval of Commercial Interior Build-Out Grant Program in the amount of $45,000 for Grandma's Manufacture, LLC d/b/a Grandma's Treasures located at 1550 N. Federal Highway, Suite 1 This item was pulled by Board Member McCray. 11. Pulled Consent Agenda Items Board Member McCray asked if the applicants were present for the items he pulled. Items D, E, F and G, all pertained to the King's Learning Academy. Board Member McCray visited the address and saw the Treasure Chest. He asked if Ms. Girtman still owned it. Octavia Bell explained the daughter, Claire Girtman Gail is operating the Treasure Chest. She is turning ownership over to them and the Center will have a new name. Board Member McCray applauded them for allowing the Center to continue and 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 for installing the playground equipment and the fence. He wished them well and was pleased they were partnering with the community. Bruce Louis, business manager for the Academy, commented he has been working with them for a year and a half to develop a carefully thought out program and operation for the location. He thanked the City for their assistance with their small business and announced they plan to be a good corporate citizen. He pointed out one program he is fond of is a program that engages the parents as a prerequisite. The parents will be engaged in some of the program elements and they look forward to being part of the business community. Ambry King explained the Kings Learning Center will provide infant, toddler, and school aged services. They will pick up from two elementary schools for after care and will have summer camp as well. She had heard concerns voiced earlier in the meeting about a summer program. She would like to partner with the City to allow youth to come to their Center for breakfast and lunch and was receptive to all kinds of ideas. She has been in the child care field for some time and is passionate about it. She felt no child should be left behind and would use different tools to get parents more involved with their children to create an environment where all will have a chance. She was raised in Boynton Beach and attends the Bible Church of God. Board Member McCray was concerned and wanted to meet whoever signed the application. Motion Board Member McCray moved to approve Consent Agenda Items D, E, F, and G. Board Member Katz seconded the motion that unanimously passed. Board Member McCray requested the applicants for Items H and I come forward. Nadine Haseidl, CEO of Grandmas Treasure, an authentic German Bakery, advised she appreciated the two CRA programs. The bakery will be a 50 to 79 seat restaurant fronting on Federal Highway. They will serve brunch, lunch, breakfast and dinner. She hoped to be a strong community partner and advised she participates in Thanksgiving Food runs. As she had heard about summer camps and youth, they would love to give something back to the community and participate however they could. They plan to be open by fall at the latest, and she hoped all would attend the Boynton Beach Octoberfest. She hoped all would seek assistance to spread the word. She is currently working out of the Community Caring Center, with two employees and anticipated between 10 and 15 people would be hired ranging from dishwashers to servers. She thanked Sherry Johnson for her assistance. Board Member Casello wished her the best of luck. Board Member McCray thanked her for explaining what Grandma's Treasures was. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 Motion Board Member McCray moved to approve items H and 1. Board Member Katz seconded the motion. Mr. Simon announced the bakery was making the bread and other items for the Farmers Table in Boca. She started with them two and a half years ago and they have been a big supporter of her business. Vote The motion unanimously passed. Motion Board Member McCray moved to approve the remaining Consent Agenda Items, Vice Chair Romelus seconded the motion that unanimously passed. 12. Public Hearing 13. Old Business A. Consideration of the Rental Agreement with the Boynton Woman's Club for FY 2018/19 Meeting Dates at the Historic Woman's Club of Boynton Beach Mr. Simon explained the Board purchased the building and the Woman's Club was given permission to continue using the building for their monthly meetings. They were present so they could continue to hold the meetings, which would not exceed 60 people at meetings that would be held between 8:30 a.m. and 5:30 p.m. with no alcohol service. They also did not hold the gala event the Board approved free of charge and were requesting to move the event forward into the 2018/2019 fiscal year. Motion Vice Chair Romelus moved to approve. Board Member McCray seconded the motion that unanimously passed. Board Member Casello inquired if there is a marketing plan for the Woman's Club and learned staff has discussed the item. Now that the Library will not be using the building, major roof repairs will take place during the summer and staff will heavily market the building as a rental venue at summer's end so fall, spring and summer weddings could occur next year. B. Consideration of Boynton Village, LLC Compliance Audit (Tabled 5/8/18) 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 Motion Board Member McCray moved to remove from the table. Vice Chair Romelus seconded the motion that unanimously passed. Attorney Duhy explained Legal reviewed the issue raised at the last meeting, as there was an ambiguity. Between Legal and Ms. Hill's analysis, they arrived at an amount of $73,611. Cornerstone agreed to the amount. A motion was needed to release the funds. Motion Board Member McCray moved to approve. Board Member Katz seconded the motion that unanimously passed. E. Project Update 211 E. Ocean Avenue, a/k/a Magnuson House David Katz advised the attorney was delayed. Attorney Duhy explained at the last meeting, Attorney Duhy notified the Board Legal issued a Notice of Default and a demand for the return of the property under the reverter clause of the Purchase and Sale agreement for 211 E. Ocean Avenue. Pursuant to the addendum that was agreed on, they did not obtain a building permit as required on May 14th. The CRA issued the Notice letter on May 15th, which requires them to provide the deed to the CRA by June 14th. After issuance of the CRA letter, staff received communication from counsel for Shovel Ready requesting a meeting. The meeting was held, which Mr. Simon and Attorney Duhy attended. They explained they are in default of the agreement and neither she nor Mr. Simon could change the legal direction the Board authorized. The members had been provided a determination how to move forward and an email communication from Attorney Tom Carney, for Shovel Ready, which proposed settlement to the issue. Under the terms of the reverter, the CRA would return the purchase price originally paid. Shovel Ready was requesting other alternatives. Attorney Duhy was comfortable with the CRA's legal right to demand the reverter, and that they are not in compliance with the agreement. They had issued a letter challenging the assessment, which Attorney Duhy disagreed with. The issue to determine is if the Board wanted to direct Attorney Duhy to institute legal proceedings to obtain ownership of the property pursuant to the agreement or waive the default and work with Shovel Ready in the manner they proposed or some other way. David Katz explained he had only attempted to delay the item until the attorney arrived. Board Member Katz wanted to proceed and noted no one from the team showed up. A month ago, the team appeared and signed a document indicating Shovel Ready would not pursue or force legal action as a result of a potential default, which they subsequently entered into days later by not filling out permits they said would be done within days. He objected to receiving the series of emails and a meeting request with the CRA and that 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 they are indicating they spent $50,000 on plans although they had not complied with any provisions of the contract, but have asked for numerous amendments, and they swore they would not force legal ramifications if they did not comply. He did not need to hear from Attorney Tom Carney. They signed an agreement, asked for numerous amendments and the most recent amendment indicated they would not force the issue into a lawsuit. The Board is faced with the exact situation he did not want to engage in and he felt it was litigation extortion. He did not support paying them a cent as they failed to comply with a contract. If the CRA did the same thing, they would be laughed at. It was offensive to him to have the conversation. He announced the Board does not have to make a motion as the contract is in default. The CRA sent them papers and is in a good position. The CRA has a sworn document in a contract they agreed to, that they would not do what they are doing, and the CRA should move on. Attorney Tom Carney, Shovel Ready, advised they entered the contract in good faith and were still trying to proceed in good faith. There were many issues along the way and issues with staff reviewers. They were ready, willing and able to pay the permit fee, but there was a delay by a day because someone was out of the country. The permit fee is non-refundable and meanwhile Shovel Ready received a letter from the CRA. If Attorney Carney paid the permit fee the next day, and the Board decided too bad, then not only is the deal gone, but so is the permit fee. The CRA does not work in sync with the City. Shovel Ready said fine and they would appear before the Board. They sent to CRA counsel and Mr. Simon what they could do going forward, which he understood the Board had issues with it, but it was not as though they had not spent money on the project. They had to shore up the floor and there were delays. He advised they are trying to move forward. He objected to the assertions they did not act in good faith. The goal is to get the project done. Mr. Carney provided several proposals and if the Board did not want them to develop the project, they will leave, but they wanted reimbursement for money spent on the floors and work on the floor and others, or go forward and instead of the eight-month completion period, it be extended to 12 months. He pointed out the night Shovel Ready was awarded the contract, another project was also awarded on the 500 block, which is still vacant. Board Member Katz commented, if they had the money to get that property back, they would as it was embarrassing because it is still vacant. Attorney Carney pointed out Shovel Ready was still appearing before the Board in good faith. Board Member Katz commented the developer of 500 Ocean spent hundreds of thousands of dollars and it is clear they made renovations. The building is ready to open, but he understood the timing and proximity of the two projects was coincidental, but the difference was like night and day as to what was done and what was not done. Mr. Carney explained the issue is to get the building up and running that will be a success and a credit to the neighborhood and the City. Suggesting they had not spent money or time on the project is incorrect. Attorney Carney explained they spent $70,000, but he was only asking for $50,000 and if the Board would like to refund the $70,000, it would be great. Board Member Katz hoped in the spirit of not engaging in combat, they would simply return the property in accordance with the agreement that was signed. Attorney Carney explained whoever 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 takes the project over will be the beneficiary of their work. His clients are good people and they do good work. Board Member McCray had reviewed the issue to understand the delays and reviewed the record. He asked if they were willing to pay the fee and learned they were if they could get 12 months to finish, which would be a four-month extension. Board Member McCray asked if they paid the fees and granted the extension and did not meet the deadline within the 12 months if they would walk away from the table. Attorney Carney responded they would have very few bargaining chips left if they did not complete the project. He commented if there was a hurricane that caused a delay, he hoped they would be granted a stay of the totaling of the time, provided they genuinely could not continue the progress of the construction. Board Member McCray asked if granted, when work would begin. Attorney Carney advised they submitted the paperwork, but the permit was not issued because it is non-refundable and Attorney Carney thought it would be ill advised to pay a non-refundable fee because he was unsure whether they would move forward or not. Attorney Carney commented he could pay the fee in a day or two. As soon as the permit is issued, work could begin. Mike Rumpf, Interim Development Director, explained staff assigned a person to be the liaison for the project. He believes it was ready to be permitted. All the permit conditions have been met as they were on May grn Board Member Casello commented two years ago the CRA turned the building over in good faith to Attorney Carney's client. It was supposed to be a catalyst and anchor for the area. It has been an eye sore. There have been two hurricanes and the building was not secured. The client had to be told to cut the grass. He commented it was not that the CRA did not want the client, it appeared the client did not want the CRA. He thought the client treated the process in a deplorable manner for the last two years. There were always delays. Board Member Casello favored cutting ties and moving on. Motion Vice Chair Romelus moved to approve the second offer by Attorney Tom Carney to move forward, but rather than the $50,000, she would like to have the hard costs up to, but not exceeding $50,000 with language crafted by the attorney and to enact the reverter clause. Chair Grant commented the project was approved prior to his election. The site plan was approved in 2016. Moving forward, things have changed since 2016. The parking lot that would be used for the building, will no longer be a parking lot. A parking garage would have to be built. Even if the building was constructed within 12 months, there may not be a place for patrons to park as the area would be under construction for the next three to five years. He agreed with Vice Chair Romelus regarding the costs associated with the building. He thought providing the CRA with that information would be an equal exchange. The CRA would get the information and the client gets $50,000. He thought it was sad they are in this position after this amount of time. He feels the CRA is not in 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 the same position because they could do something more because the future land use is mixed-use medium whereas before it was commercial. There would be equity out of the argument and all could move forward. Board Member Katz did not support the proposal and had lost faith. They are discussing one option to extend more time. The discussions are the same, and it was more of the same at the last meeting. He thought it was absurd. With regard to costs that may come from litigation, if the CRA prevailed, Shovel Ready would have to cover the CRA's legal costs as there are attorney fee privileges. He commented staff dedicated an employee to ensure the plans would be reviewed and the approval would be made and it was done, and Mr. Rumpf had indicated the department did all that was humanly possible to move it. He did not believe a $50,000 taxpayer participation trophy for a team that failed to win was acceptable. The contract says have to give the property back at cost. The CRA is in the right and they are negotiating against themselves on behalf of the taxpayers. It said if the permits are not paid for, the property would revert back to the CRA. It was absurd to him that the Board, which voted 5-0 to approve the amended contract, was negotiating against themselves to give away upwards of $50,000. The property belongs to the CRA and they are legally entitled to take it back at the cost they sold it to them, which was much lower than the market value since they instituted the Consolidated Flan. It was a great buy for the owner. He noted $50,000 could pay for many children to attend summer camp and could keep the facility open as discussed earlier. The owner signed it and the Board is voting to throw away $50,000 they do not have to which he did not understand. Board Member Casello explained they developed plans and shored up a floor. He asked about the other costs. Attorney Carney did not have the information with him, but advised building plans are expensive. Board Member Casello commented the building will either be demolished or moved and the plans for the building will be moot. Vice Chair Romelus reiterated her motion was to pay for hard costs. Even if they do move the building after redeveloping the area, she agreed with Board Member Katz's comments. The current owner had lots of opportunities to get things done, but this is the best time to make good with what they have. Even if the CRA is in the right with language in the reverter clause, the focus of the CRA should be the Downtown Town Square, which is a $250 million project. She did not favor a drawn out scenario and supported paying the hard costs and moving on. Board Member McCray noted Board Member Katz mentioned using the $50,000 for summer camp, but pointed out CRA funds cannot be used for summer camp and he did not want to mislead the public into thinking that they could. Mr. Simon agreed to provide the Board with information at the next meeting. Mr. Rumpf dedicated a plans reviewer as a liaison for the project. Discussion followed the liaison was responsible for seeking out each person with comments and linking them to the applicant when meetings were held in the department to interpret and address the comments and amend the plans making it a priority. Normally, plans go through a sequence of review. The liaison expedited the 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 process. That was done during the month of April and first week in May. As soon as the plans came in, they were reviewed. Board Member Katz read the provision inserted into the last amendment of the contract as: "The purchaser shall waive its right to contest reversion of the property if it does not obtain a building permit on or before May 14, 2018, and shall execute the deed as described as above." He thought there may be a difference in opinion of the legal interpretation "of the purchaser shall waive the right" but he thought the language was very clear. It was an extended deadline. He pointed out there may be other uses for the $50,000 which could include moving the building, or the Robert E. Wells Day, or other business economic development grants to create jobs than to buy out an organization that fails to adhere to the contract. It is a waste and it projects weakness on the part of the Board. The contract was violated on its face. He was baffled the Board was negotiating how much money to waste. The firm failed to comply. Attorney Duhy explained under the worst case scenario, the CRA would need to institute the appropriate legal actions and seek an expeditious resolve through motion practice or before it went to hearing or deep discovery, as the CRA's argument would be the matter was clear on its face. If Shovel Ready contested it vigorously with discovery, the CRA's cost would rise commensurately with how much they were contesting the issue. She advised she could not say the CRA would win because she is not the judge, but she is confident in the CRA's legal position and in her advice to the Board. She estimated the initial complaint filing would take two to five hours or less. If the case was resolved quickly, her estimate was $5,000 to $10,000. If the case was drawn out, costs would rise, but there is an attorney fee provision for the prevailing party. Vice Chair Romelus requested Attorney Duhy clarify what hard costs would be verified by her. Attorney Duhy would propose Shovel Ready provide staff and her a list of costs. They would work and negotiate with them and bring the verifiable costs back to the Board so there is no confusion. She noted hard costs of transacting and printing the documents and improvements to the structure and there are professional fees, which she was unsure would be included. She advised it should be articulated clearly and they provide evidence of it prior to moving forward. She explained entertaining the motion does not waive the CRA's right to enforce the agreement until they amend the agreement which she did not recommend doing at the meeting. There is a no waiver provision, which means if the CRA tries to work it out, and is unsuccessful, the CRA can still pursue action with the default and the failure to provide the deed to the CRA as required on June 14th Vice Chair Romelus commented her motion stands and she would like the information to return to the Board so they can decide what to offer. Board Member Katz offered a friendly amendment to include in the latest offer, language that if it prevails and they are given time to establish costs, that if they disagree with the outcome of the Board, they need to waive their right to proceed to litigation. Vice Chair Romelus agreed to the friendly amendment. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 They are in default and the CRA gave them 30 days to provide the deed, which ends June 14t". The motion is not to continue the process of them returning the deed back: the deed is coming back. The only thing under discussion is about paying the $50,000. They get the property back as of June14t" and the verifiable costs would come to the Board in July. Attorney Duhy summarized the motion would be Shovel Ready will provide the deed to the CRA By June 14t", with a copy of their verifiable costs up to$50,000 with proof thereof. The CRA will have the deed at that time executed to the CRA and at the July meeting, the Board will verify the costs and if the Board believes they are verifiable costs. Board Member Romelus announced that was her motion. Board Member Casello asked Attorney Carney why the owner was not present if the project is so important and learned he was out of the country. Attorney Carney apologized for arriving late and commented he was also at the Delray Beach City Commission. He would not want his client to be negatively affected by his tardiness. He did not anticipate this item would be heard at 7:05 p.m. the item was further down in the agenda. As to the language read by Board Member Katz, he commented he read the language as well. There was a substantial amount of work getting to the point of getting to the permit and there is no time is of the essence in that provision. When someone invests a lot of time and effort to do something and misses it by a day without a time of the essence clause, he suggested it is not so cut and dry. The City is ready to issue the permit. and Shovel Ready is ready to buy the permit. If the Board decides not to proceed with them, they should at least get whole in the project and the property is now more valuable than when it was given to the developer. There are alot of reasons to understand why they are being put in this time crunch. Shove Ready wants to move forward. Attorney Duhy noted section 22.2 of the agreement deals with the computation of time and it states that time is of the essence in the performance of all obligations included in the agreement. Board Member Katz pointed out Shovel Ready missed the deadline by 61 days, as they had an extension. Not one day.. The motion died for lack of a second. Board Member Katz requested clarification no motion was needed to proceed with the reversion. Attorney Duhy suggested a motion be made to direct her to initiate necessary legal proceedings to enforce the agreement. Motion Board Member Katz moved to ask the property owner one final time tomorrow, to abide by the contract to return the property in exchange for the $255,000 purchase price that was paid by June 14t", to avoid potential litigation as per the agreement signed two 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 months ago, and in accordance with the Vice Chair, to truly wash the CRA's hands of it and move forward and direct Attorney Duhy to initiate legal proceedings. Board Member Casello seconded the motion that failed 2-3, (Board Member McCray, Vice Chair Romelus and Chair Grant dissenting). Board Member Katz understood in two days if Shovel Ready did not return the property Attorney Duhy would proceed to initiate proceedings. Attorney Duhy commented she needed Board direction to initiate proceedings. The vote not to proceed does not preclude them from a vote in July to initiate proceedings then. Attorney Carney heard the Board and it is up to Attorney Carney and his client how they wish to respond. This item will be before the Board and they can choose to enforce the request at that time. Chair Grant requested a listing of hard costs noting the next meeting is July 10tH Board Member Casello asked why only some of the Board members were lobbied. Attorney Carney responded they were unfamiliar with the process and wanted to ensure all the right departments were contacted. The lobbyist was brought in late in the process because they had a short time to meet the deadline and they wanted to expedite the matter. D. Consideration of Termination of Lease for Neighborhood Officer Policing Program Office Located at 404 E. Martin Luther King, Jr. Blvd. Mr. Simon explained the Board has the authority to pursue terminating the existing lease for the above property. Staff began to send certified letters and hold back rent payments due to defective plumbing and the ceiling making the office unusable since March. Staff sent letters for each month since March notifying the landlord they would not pay the rent due to the conditions as contained in the lease because the office was not habitable. The lease ends on September 30th and they have not received any objection to the CRA's position from the landlord. Staff was asking the Board to decide whether to terminate the lease effective immediately or continue with the lease until the end of the term. He noted the CRA did not pay rent for June. Motion Vice Chair Romelus moved to approve terminating the lease. Board Member McCray seconded the motion. Board Member McCray commented the officers are working in the Carolyn Sims Center and they may be moved to 9th Avenue. He objected to the move and thought the officers needed to be accessible and visible. He favored keeping the officers at the Carolyn Sims Center. Mr. Simon explained the item is on the agenda because with the summer, there are some restrictions with adults being in the building due to the youth being in the building. Mr. Simon supported the Board's position to remain at the Sims Center as long as it could be supported by the City. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 Chair Grant asked for Sgt. Henry Diehl's opinion being at the Sims Center as opposed to the location on NE 9th Avenue and his opinion about how to increase its effectiveness. Sgt. Diehl agreed the high visibility at the Sims Center is very productive. The Sims Center has summer camp so in the morning and afternoon children and families are checking in and out. The Officers usually sit at the front desk, but because they use that desk for checking in and out, they move their materials aside during those time periods. He did not yet go to the building on 9th Avenue, but had planned to do so. It was noted the building on NE 9th Avenue is off the beaten path. Mr. Simon asked about a mobile mini container office that was used for the Harbor Master, which was basically a work trailer and pointed out an office for the program was discussed with the Ocean Breeze East project. There would be a more permanent location for the program, but the project would not be constructed in the next year. Work trailers can run $800 to $2,000 a month, but one could be placed in the Sims Center parking lot. When the summer programs are over, they can resume working out of the Sims Center. Sgt. Diehl explained currently they are adapting and overcoming. When they are not at the Sims Center they are in their cars. They are not doing without and they are well received at the Sims Center. Pick up and drop off during the summer is about an hour in the morning or afternoon although there are some others. Board Member McCray did not favor a temporary work trailer and felt the Officers should remain at the Center. Sgt. Diehl expressed a concern about where to house the segways they use when the Police Department is moved. Chair Grant suggested Public Works. It was noted the segways are used three times a week. Vote The motion unanimously passed. E. Consideration of Community Caring Center of Greater Boynton Beach Inc.'s Grant Agreement for the Boynton Beach CRP. Nonprofit Organization Grant Program (Vice Chair Romelus left the dais at 8:17 p.m.) Motion Board Member McCray moved to approve. Board Member Casello seconded the motion that unanimously passed. Vice Chair Romelus was not present for the vote. F. Consideration of Habitat for Humanity International (d/b/a Habitat for Humanity South Palm Beach County) Grant Agreement for the Boynton Beach CRA Nonprofit Organization Grant Program 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 Board Member McCray moved to approve. Board Member Casello seconded the motion that unanimously passed. (Vice Chair Romelus was not present for the vote.) G. Consideration of an RFP/RFQ for Redevelopment for CRA Owned Parcels within the MILK, Jr Boulevard Corridor Mr. Simon explained this item was a discussion of the terms, conditions and qualifications proposals for the above in the eastern and western portions of the corridor near Seacrest Boulevard and Federal Highway. The terms and conditions were discussed at the last meeting, and reviewed by the CRA Advisory Board. Their recommendations were included. Chair Grant commented on the economic conditions. He noted there are facts listed which should be substantiated via footnotes and the most recent Census says the City has a population of 78,000, not 71,000. He favored, regarding item 2, where it reads retail is not required in each building or structure, that it read they are requiring retail in commercially zoned areas and not all is mixed-use. He inquired if the CRA normally asks for all lease agreements or ownership of applicants in Section 8 of the proposed submission requirements. Mr. Simon responded they did for the Cottage District and the Town Square RFP. Staff only asks for the documents to verify the entities exist where they say. Chair Grant asked what the Board would think about waiving the minimums for the Town Square. If someone in the community wants to make a change and has not done anything before, the CRA is prohibiting them from sharing their ideas of what MLK would look like on CRA properties. The CRA only has half the properties on MILK unlike Town Square. (Vice Chair Romelus returned to the dais at 8:23 p.m.) The Board was asking for a lot of vision with half the land available. Chair Grant was not necessarily happy with the Board's commitment about the land and money without strict community benefits agreements besides hiring people to help build it. It is up to the Board regarding a community benefit agreement. Board Member Katz requested clarification Chair Grant was dropping the standards to allow people without development experience to have input in the process or submit a response to the RFP/RFQ. Chair Grant was and wanted to look for the top three developers, but he did not want to prohibit the community from providing their ideas for what to develop. Board Member Casello thought it would be vetted at the time a developer is chosen. Chair Grant pointed out the developer already submitted their ideas. It would be in addition to what a developer would already do. Board Member Casello commented the Town Square had a concept with a community meeting. It was thought holding a community charrette would be helpful. Board Member Katz noted the CRA Advisory Board made a recommendation to seek out tax credits, similar to what was done for Ocean Breeze East. He asked Mr. Simon, since 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 the property was not contiguous, if it would be beneficial to include their tax credit plans. Mr. Simon commented there was other language the Board could consider. He attempted to write bullet points under the Board's commitments that the Board would consider requests for certain portions of the project if they had to utilize the credits, but it is not a requirement. The tax credit process is long. Mr. Simon hoped the incentives in the current economic conditions, as well as development along Seacrest and in the Town Square area north, would provide enough incentives for the private and non-profit development communities to be able to find financing or create a joint venture so that they would not need that type of a funding source for some or all of the development. He was receptive to excluding consideration of that type of a funding option. Board Member Katz thought it would be nice if the responses included tax credit provisions, and thought language could be included that if they respond seeking tax credits, it be submitted at the same,time with a plan that would not use tax credits. Discussion followed about the CRA Advisory Board reviewing the responses. Mr. Simon advised he would move the response date from the 20th to the week before so the Advisory Board would review the proposals first. Board Member McCray favored the CRA Board review the proposals before the Advisory Board. Board Member Katz agreed with Board Member McCray. Chair Grant asked if the Board wanted the CRA Advisory Board's recommendations in the RFP/RFQ. Board Member McCray commented the CRA Advisory Board could review what the Board decides. Chair Grant also supported Respondents submit a development plan with and without the use of tax credits. Motion Board Member Katz moved to approve. Member McCray seconded the motion that unanimously passed. 14. New Business A. Consideration of Terms for Lease Agreements with the City of Boynton Beach and the Boynton Beach Congregational United Church of Christ, Inc. for the CRA Owned Property located at 115 N. Federal Highway for Temporary Use as the Public Library Annex Motion Vice Chair Romelus moved to approve. Board Member Katz seconded the motion.. (Board Member Casello left the dais at 8:32 p.m.) 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 Board Member McCray asked how much rent the Church would pay per month and learned it was $10 a month under the post occupancy agreement. Under the current post occupancy agreement, the Church is responsible to maintain the building. Once renovations are made to the interior and the Church is provided a designated space, Mr. Simon suggested the CRA make the Church responsible for maintaining anything inside their designated area. Board Member McCray asked if the Board could request the Church leave at the end of December so the Library can have a full expansion. Mr. Simon responded the Board could, but the Church was requesting they be allowed to stay past the post occupancy agreement. Board Member McCray queried if the Library needed more space after December, if they could break the lease. Chair Grant explained under the current terms, they do not have to move until December. Mr. Simon commented as a landlord, the Board would have access to the Church space with proper notice. He thought it was not worth jeopardizing the current deal to do anything past six months as the money the City saves by staying there was significant. (Board Member Casello returned to the dais at 8:37 p.m.) Mr. Simon explained the post occupancy agreement would end and the two new leases would apply: one with the Church and one with the City. There were so many changes that would apply that a new lease agreement was recommended by Legal and the Church. In order for the Church to agree to the new lease, the Church would stay until December and the Library would temporarily move into the Church. The only negotiable item besides the build-out costs was the ability to stay there afterwards. Board Member McCray commented with the new lease in December the Board could only approve allowing the Church to remain another six months. Mr. Simon responded if the Board motions to submit that as a term they could. Board Member Katz agreed as it is better to leave options open. The Board could always renegotiate terms and he did not favor being locked into an extended lease agreement. Chair Grant noted if the Board made a counter offer, they may lose the use of the space for the next six months. They can negotiate to extend a date certain to vacate. He was opposed to jeopardizing the current agreement. Board Member McCray suggesting leaving the agreement the way it is now. Attorney Duhy suggested having a term. The term could be automatically renewable unless provided with a 30 to 60-day written notice. Chair Grant suggested seeing if they would accept a one-year extension to December 2019, with a 60-day written notice. Mr. Simon could just add six months to the December date with an option to renew after that. Time is of the essence to the City. Chair Grant did not favor new terms. Vote The motion unanimously passed. 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 Later in the meeting Mr. Simon requested clarification of the motion and discussion followed. Chair Grant wanted to reconsider the matter and explained if the Board did not agree to their terms, the City cannot occupy the space until the CRA has an agreement with them. It would postpone the Library moving in. Board Member McCray explained the Board would leave the agreement the status quo and the Library would move in and the Church use a designated space for six months until December. Chair Grant understood the Board's offer was anything past the six months is was a counter. Their request is for the full duration the Library is in the building. The Board would have to make a motion to approve their counter offer to allow the City to move in. Attorney Duhy clarified there is a current post occupancy agreement that gives the Church the entirety of the building until December. The negotiation has been the City moves into a portion of the building for the Library. The request was the Church would rent a small area inside the building, but wanted a time extension to occupy the same smaller space. To accomplish that, there needs to be two leases. The post occupancy agreement would cease and there would be a lease negotiated with the Church for a term and a lease negotiated with the City for a term for separate spaces. The motion on the floor was to make the Church lease for a term of six months and at the end of the term, the Board could reconsider renewing the lease thereafter. (Board Member Casello left the dais at 8:55 p.m.) Board Member Katz suggested the Board make it clear to the Church it is not the Board's intent not to renew as he would support a renewal. He favored the opportunity to evaluate the situation as more Library space may be needed. He favored flexibility. (Board member McCray returned to the dais at 8:57 p.m.) Mr. Simon inquired if the Board would consider the option of allowing a portion of the first floor of the Woman's Club to be used for additional storage or usable space for the temporary Library as an option with this building in the event it was needed. Vice Chair Romelus would be amenable to the use of the Woman's Club so long as it does not interfere with regular activities. Mr. Simon would bring a formal request back to the Board. The leases would include a 30-day notice provision of intent not to renew. Chair Grant summarized the Board approved the CRA going back to the Church and City for two leases Tim Howard, Assistant City Manager, explained the Library is the first to move after the bonds are issued at the end of July. If the City does not have a location for the Library to move with certainty, the City will have difficulty securing a mover, it will delay the Town Square project, or the City will need to find another space for the Library. Mr. Howard explained if the Church denies the six months and wants to exercise their post occupancy of the complete building, then the City has no library space and the City would not know 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 that until the next CRA meeting. The City released space they had secured for the Library, and the City would be back to square one. Motion Chair Grant put out a motion for reconsideration. Board Member Katz so moved. Attorney Duhy recommended giving Mr. Simon the flexibility to negotiate a term of not to exceed a certain period of time. After that, it could go to six months or be a shorter term. She recommended giving Mr. Simon some flexibility so it would not require them having to come to the Board. Chair Grant passed the gavel and moved for the following: Motion The motion for the Executive Director to discuss terms with the Church to consider more of a date certain than just the remaining amount of how long the Library will be is at the church with the caveat to ensure the Library is able to move forward on the time schedule. Board Member Katz seconded the motion. The motion passed 4-1, (Board Member McCray dissenting.) Attorney Duhy understood the Board did not want to lose the ability to move the Library as there is no time certain that Mr. Simon was restricted by. Vice Chair Romelus passed the gavel back to Chair Grant. B. Consideration of Roof Replacement Contract with Advanced Roofing, Inc. for the Historic Woman's Club of Boynton Beach Thuy Shutt, Assistant Director, presented this item. There was a visual roof inspection conducted during the due diligence pre-purchase period and the cost to replace the roof was $223,728. Staff applied for and received a $50,000 grant in addition to the budgeted $200,000 to repair the roof. They want to ensure that all previously contracted events take place. Staff was seeking approval of a piggy-back contract to Advance Roofing, Inc. Piggy back contracts are permissible as long as they honor the unit pricing and the commitments listed. The alternative is the fastest way to repair the roof. She noted with all the recent rains they have had, there is a leak. The building is also historic and staff wishes to maintain the character of the building. There are two types of roofing systems and there are a few outstanding items. Ben Bradley of Advanced Roofing was present to answer any questions. Ms. Shutt explained the company is a reputable company. They have two warranties. There is a two-year warranty on the labor, but the materials warranty would depend on the manufacturer and was being worked on. The contractor also wanted to ensure for 22 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 inclement weather, they would not be penalized, or be penalized if there is a backlog for the building permit. Staff committed to expedite the building permit and also needed to confer with the CRA insurance agent to ensure the CRA can purchase builders risk insurance. This type of insurance is usually purchased by the owner or general contractor. Advanced Roofing is not a general contractor. A proposal was included in the meeting material and staff would like to work with them to get the best warranty period possible. Staff would want a 20-year warranty, and the CRA would have to ensure the manufacturer has the proper inspection for the performance and repair work. The contract amount for Advanced Roofing to do the work would not to exceed $384,934 including a 10% contingency fee for unanticipated costs. She noted there was some termite damage identified, and staff does not know how much damage exists. The cost also includes designs for a structural engineer to design the repair of the trusses. It included the cost of the performance and payment bond equal in cost of the repair work as well as the allowance for the inspection, design costs and structural engineering. Staff was requesting the Board authorized chair to execute agreement after repair by legal counsel and staff would like to expedite the matter and issue a Notice to Proceed so all will be completed by October 1st. Attorney Duhy recommended the motion be for the Executive Director to have the ability to negotiate the final terms as proposed by Ms. Shutt. There are some issues being finalized. The Executive Director could be given the discretion to negotiate the rest of those consistent with the legal requirements for piggy backing which would be subject to legal review. Chair Grant noted the building was an Addison Mizner building. He asked if the company could make all the needed improvements. Ben Bradley, Advanced Roofing, advised he was confident they could make the repairs. Motion Board Member McCray moved to approve. Board Member Casello asked if the roof would match the original roof. Mr. Bradley explained the roof is made from a handmade clay tile. It will look identical. Board Member Casello seconded the motion that unanimously passed. C. Consideration of Additional Grant Funding for the Economic Development Grant Program Mr. Simon explained at the May meeting, the CRA Board requested staff look at the existing budget to make recommendations to supplement the funds in the economic development grant line item. Staff identified $50,000 from the Project Funds, business marketing program line that were unused that could be transferred to the grants. Including the items approved at this meeting, there was $18,250 in the current economic 23 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 development grant program line, unless the Board approves further funding for the remainder of the fiscal year. Vice Chair Romelus supported the program. She noted this is what a CRA is expected to do and the program is being noticed. Motion Vice Chair Romelus moved to allocate the additional funds to continue the program to throughout the fiscal year. Board Member McCray seconded the motion for discussion. He asked if there are funding requests pending and learned there were. Vote The motion unanimously passed. Vice Chair Romelus requested hearing item E before D. There were no objections. E. Consideration of Award and Contract for Responses to the Invitation to Bid to Perform Landscape Maintenance Services on Properties Owned by the CRA (Heard out of Order) Ms. Shutt explained this item was the result of an invitation to bid for landscape maintenance services. There are 47 properties and the CRA contracts with five entities to maintain them and spread the work around. To control costs, they issued the Invitation to Bid and conducted a sufficiency and compliance review. The lowest, most responsive bidder for the category 1 properties, which were improved properties such as the Woman's Club, the Marina and the parking lot, was Green Industry Landscaping for $27,610 annually. The second category was for vacant CRA properties and the lowest bidder was $22,680, however, there was a letter from Vincent and Son, indicating that unless they have both contracts, they would withdraw their bid. In that event, the next lowest bidder was LV Superior Landscaping at a cost of $25,800 annually. LV Superior did not make it onto the staff's review list as the lowest bidder because there was a material item missing from category one. She noted in totality, the Invitation to Bid allows the Board to make a combination of awards that are in the CRA's best interest. If the Board choses to waive material requirements, or give LV Landscaping more time to provide the documents, their cost for both categories would be $48,570. If the Board wants Vincent and Sons to also have both contracts, their total amount was $59,160. Vincent and Sons is the only local business that qualified out of the respondents as a local preference contractor. Ms. Shutt commented the CRA has already spent$89,570 in landscape maintenance this year. This contract will be a cost savings to the CRA because it will be a two-year contract with an option to renew for one year. Staff's recommendation was to award the contract to the two most responsive bidders for the two categories, but the Board has the ability to deviate from the recommendations. The 24 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 work was split between the groupings of lots. Green was the lowest bidder for category one and Vincent was the lowest for category two. Vincent and Son submitted a bid of $59,000 a year for both categories. Board Member Romelus asked if Vincent submitted the highest bid for both categories and learned they were the lowest for the vacant properties, and the highest for both categories, but satisfied the CRA local preference, which is 5% or $5,000. Chair Grant commented staff received the letter today about the category one and two properties. He noted some landscaping companies run over the trash on site and asked if they pick it up before cutting the yard as the Heart of Boynton has decades of trash. Nicholas Petrino from Vincent and Son explained they are currently the primary and local contractors and they service CRA properties including the sign on Federal Highway and trash removal at various locations including MLK Jr. Boulevard. Board Member Casello inquired what made Mr. Petrino decide not to service the category two properties and learned when they responded, they bid it as a whole contract and submitted lower numbers on the lots thinking they would bid the entire contract. When they found out they would be awarded only the one lot, it was not financially feasible and they would lose about $800 a month. Vincent and Sons was about $5,700 more than the other respondent responding to both lots. The 5% or $5,000 local preference which ever was less was $1,380.50. The 5% on the bid category would not apply, but if looking at the cost benefit of having a- local business for the price difference of $5,750, the company would be in the area and available and it could be considered a public benefit because it builds wealth in the community and they are paying taxes. Board Member Casello liked hiring locally. There was discussion about combined offers. Staff has to stick with requirements, but the Board has to weigh the public benefit and waive minor inconsistencies. Board Member McCray inquired if Vincent and Sons handled the medians and learned they maintain and handle trash along the Federal Highway median, the parks along Federal Highway, Gateway Boulevard, Boynton Beach Boulevard, and Congress Avenue from Gateway to Delray Beach, Board Member McCray asked how high the hedges had to grow in the medians before they are cut. Mr. Petrino explained it is in the contract and they are discussing it with Glenda Hall, Forestry and Grounds, and she has been meeting with them about specifications about how she wants the hedges shaped and about the height moving forward. Motion Vice Chair Romelus received confirmation Green bid for both categories at $110,000, Vincent and Sons at $59,160 and LV Superior at $48,570. Vice Chair Romelus favored Vincent as the local preference for both categories as the CRA has paid $89,000 this fiscal year and so moved.. 25 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 Yeddi Season, Green industry Landscaping, was the lowest bidder for the category one, but was much higher for the combined category two. The company has over 20 years of agricultural experience and five years of landscaping experience handling commercial landscaping in addition to residential. They visited the subject site and took into consideration the size of the tree. All workers are tree trimming licensed as well as licenses in fertilizing. They have commercial pest control operators, and are specialists . She explained if bidding low, corners will be cut and they will not do what they are required. The company gives a true estimate. They are not from Boynton Beach and were notified at 2 p.m. to attend and they did. She advised they are motivated and would do the job well or not bid at all. Board Member McCray asked Mr. Petrino if they handle the medians on Seacrest and learned they do not. Vincent and Sons has been in the City for five years. Vote Board Member Katz seconded the motion that unanimously passed. Both bids were awarded to Vincent and Sons. D. Consideration and Discussion of Fiscal Year 2018/2019 Budget Mr. Simon explained the Board will review the Debt Service Fund and the Project Fund including the CRA's obligations under the Board's current Tax Increment Financing (TIF) agreements. There are three funds in the current Operations including the General Fund, which contains the Administrative, General Operation, Insurance, Property Maintenance, CRA Board and CRA Advisory Board Expenses and Marina related items. The Project Fund contains all the Capital Projects, Development Projects, Initiatives, Property Acquisition Funds, Local Business Grants, Promotional Events and Innovative Policing Program. The third Fund within Operations is the Debt Service fund, which contains the CRA's Financial Debt Obligations for Bonds and Encumbrances and the TIF Agreements the Board has. A snapshot of the CRA TIF was viewed. The balance of funding after TIF obligations reflected there was available project funding in the amount of $6,170,803. The Town Square Project would use $3,700,000 and was encumbered as an obligation to the City. Staff took two categories of project funds and placed an amount for the Special Events. Neighborhood Policing and Marketing assistance programs for local business. The Board could eliminate all three of those items or leave as is. The MLK Corridor Redevelopment line item had $1,200,000, and there was no money spent to date. The Board could roll it over or leave the amount. Staff has been working with the City on the Sara Sims project. This year $600,000 was dedicated to the project to match the City's $700,000 to complete the project for $1.3 million. Mr. Simon anticipated the project cost would increase due to the cost of materials and other factors and worked with Kimley Horn and the City on ways to adjust the scope. Staff would make 26 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 a presentation at the July meeting on the final design. He anticipated it would be more like $1.5 or $1.7 million. It was also noted any of the line items could be changed before adoption of the budget in September. Mr. Simon explained there was no need to add more funding for the Ocean Breeze East project. As to the funding for Sara Sims, all agreed the $600,000 CRA commitment and $700,000 from the City was done. Discussion followed if they commit to a certain amount of money, they should stick with it as they have a budget. Vice Chair Romelus agreed that over time, prices change. She favored keeping the $600,000 and having a later conversation. Board Member McCray agreed with rolling the $600,000 over. Board Member Katz wanted to see the next year's budget projections assuming they rolled everything over so he could see what was available and what he would endorse. He wanted to see the commitments already made and roll over all unused funds into the same categories next year and then adjust. Vice Chair Romelus agreed and asked what the balance would be. Some of the line items had funds encumbered, but not yet spent. Vicki Hill, Finance Director, explained there is $6.1 million and after all the funding commitments such as the Ocean Breeze East, Town Square, Neighborhood Officer Program and the marketing programs, there is $1.4 million left to allocate. Staff will advise what can be rolled over, and what is extra next month. Vice Chair Romelus favored reallocating at least$500,000 for the Economic Development Grants. Board Member McCray noted staff recommended decreasing the community policing by$2,000. Ms. Hill explained the reduction was in the miscellaneous office supply and miscellaneous promotional line items. The Neighborhood Officer Program will also save rent now that they are working out of the Carolyn Sims Center. Professional services had $325,000 and of that, $185,000 could be rolled over. Mr. Simon asked if the Board wanted to continue special events, the Neighborhood Police Units and economic development grants. Chair Grant commented the Board was not looking at all the programs and the budget. Board Member Katz requested adjusting the budget from 17/18 and strike through if funds were spent reflecting the remaining available funds. Ms. Hill agreed to do so. Chair Grant went to the Boynton Beach Dive Center and spoke to them and Mr. Simon about a line fish tournament. There are multiple diving businesses and the closest line fish tournaments are in Jupiter or Ft. Lauderdale. He would like to promote the City's diving industry. Vice Chair Romelus noted Boynton Beach is closest to the Gulfstream and has the best reefs behind Key West or possibly Australia. 15. CRA Advisory Board A. CRA Advisory Board Agenda - June 7, 2018 27 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 12, 2018 B. Approval of CRA Advisory Board Meeting Minutes - May 03, 2018 Board Member McCray asked if the Board had to approve the CRA Advisory Board meeting minutes and learned they approve their own minutes. It was suggested the item read meeting minutes. C. Pending Assignments 1. None D. Reports on Pending Assignments 1. None E. New Assignments 1. None 16. Future Agenda Items A. Consideration of an RFP/RFQ for the CRA Owned Property Located at NE 4th and NE 5th Avenues, a/k/a the Cottage District B. Boynton Beach Boulevard Streetscape Improvement Project Update C. Sara Sims Park Project Update D. Consideration and Discussion of the Letter Submitted by the Community Caring Center Boynton Beach, Inc. (CCC), for their property located at 145 NE 4th Ave, Boynton Beach, Florida 17. Adjournment Motion Vice Chair Romelus moved to adjourn. Board Member Casello seconded the motion that unanimously passed. The meeting was adjourned at 9:47 p.m. ddt�v� &)Of Catherine Cherry Minutes Specialist 28