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03-15-12 Special Workshop MeetingCITY COMMISSION CITY OF DELRAY BEACH, FLORIDA SPECIAL/WORKSHOP MEETING -THURSDAY, MARCH 15, 2012 4:00 P.M. DELRAY BEACH CITY HALL FIRST FLOOR CONFERENCE ROOM The City will furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits of a service, program, or activity conducted by the City. Contact Doug Smith at 243-7010, 24 hours prior to the program or activity in order for the City to reasonably accommodate your request. Adaptive listening devices are available for meetings in the Commission Chambers. SPECIAL MEETING AGENDA Pursuant to Section 3.12 of the Charter of the City of Delray Beach, Mayor Nelson S. McDuffie has instructed me to announce a Special Meeting of the City Commission to be held for the following purposes: 1. MUNICIPAL ELECTION RESULTS/RESOLUTION NO. 17-12: Canvass the returns, and declare the results of the March 13, 2012 First Nonpartisan and Special (Referendum) Election; approve Resolution No. 17-12. 2. RESOLUTION NO. 15-12/JOINT PARTICIPATION AGREEMENT (JPA)/FLORIDA DEPARTMENT OF TRANSPORTATION (FDOT): Adopt Resolution No. 15-12 approving a Joint Participation Agreement (JPA) with the Florida Department of Transportation (FDOT) for 50% reimbursement of operational and capital costs associated with the Downtown Roundabout Shuttle System. 3. SETTLEMENT CONTRIBUTION/PALM BEACH COUNTY/INSPECTOR GENERAL: Approve a settlement contribution regarding the lawsuit filed by fifteen municipalities, including the City, against Palm Beach County related to the funding for the Inspector General. WORKSHOP AGENDA 1. Congress Avenue Corridor Strategic Marketing Plan and Citywide Economic Development Incentives 2. Discussion of Possible Charter Review Committee 3. Discuss Changes to Special Event Policies and Procedures 4. Provide Direction on Valet Parking Program Options 5. Discussion of On Street Parking Regulation 6. Draft Proposals for Drainage Design Requirements 7. Commission Comments Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting, such person will need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is based. The City neither provides nor prepares such record. MEMORANDUM TO: Mayor and City Commissioners FROM: Chevelle D. Nubin, City Clerk THROUGH: David T. Harden, City Manager DATE: March 5, 2012 SUBJECT: AGENDA ITEM SP.1 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 MUNICIPAL ELECTION 2012 RESULTS/RESOLUTION NO. 17-12 ITEM BEFORE COMMISSION Presented for your review are the unofficial cumulative totals for the regular, absentee, and provisional ballots as provided by the Supervisor of Elections for Palm Beach County, indicating the results of the First Nonpartisan Election and Special Election (Referendum) held on Tuesday, March 13, 2012. BACKGROUND FIRST NONPARTISAN ELECTION COMMISSION MEMBER – SEAT #2 -TWO YEAR TERM PAT ARCHER 1,156 DAVID JOHN ARMSTRONG 135 _ AL JACQUET 1,955 CHRISTINA MORRISON 723 COMMISSION MEMBER – SEAT #4 -TWO YEAR TERM ANGIE GRAY 2,261__ VICTOR KIRSON 1,371 REFERENDUM QUESTION 1 Charter Revision relating to the length of terms and term limits for the Commission Members and Mayor Currently, the Commission Members (including the Mayor) serve two-year terms, limited to three consecutive terms. The Charter Amendment proposes three-year terms, limited to three consecutive terms as well as clarifying the applicability of such change as provided in Ordinance No. 44-11. If passed this amendment shall apply to the Commissioners and Mayor elected in March 2013 and thereafter. Should the above-described Charter Amendment be adopted? 1,236___ _ YES ("For Approval") 2,080___ _ NO ("Against Approval") I have prepared a resolution to be used after the vote on the referendum which certifies and declares the results of the election held on March 13, 2012. Exhibit A to the resolution is a certification provided pursuant to Florida Statute Section 100.351, which requires that the "election officials" of the City certify the results to the Department of State, which shall enter the results in the official records to be held on file in the Office of the Department of State. In addition, Exhibit A should also include the voting information obtained by the City from the Supervisor of Elections and the affidavit and advertisements as to the publications required by law. RECOMMENDATION To Approve the Unofficial cumulative totals for each candidate for Commission Member/Seat #2 and Commission Member/Seat #4, including all of the regular, absentee, and provisional votes as presented, and that it is hereby declared, based upon the above and foregoing unofficial results, that AL JACQUET is elected as Commission Member/Seat #2, for a two year term commencing on the 29th day of March, 2012, and that ANGIE GRAY is elected as Commission Member/Seat #4, for a two year term commencing on the 29th day of March, 2012 ending in accordance with the City Charter. In addition, approve the total votes for Ballot Question One including all of the regular, absentee, and provisional votes as presented, and that it is hereby declared, based upon the above and foregoing results, that Ballot Question One is NOT APPROVED. 1 RESOLUTION NO. 17-12 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, WITH RESPECT TO THE RESULTS OF THE REFERENDUM OF THE QUALIFIED ELECTORS OF THE CITY HELD IN THE CITY OF DELRAY BEACH, FLORIDA, ON MARCH 13, 2012, ON THE QUESTION OF AMENDING ARTICLE V, “ELECTIONS”, SECTION 5.02, “TYPES OF ELECTIONS”; TO PROVIDE FOR A CHANGE IN THE LENGTH OF A TERM FROM A TWO YEAR TERM TO A THREE YEAR TERM AND CLARIFYING THE APPLICABILITY OF SUCH CHANGE; CANVASSING THE RETURNS OF SAID REFERENDUM AND DECLARING AND CERTIFYING THE RESULTS THEREOF; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Delray Beach, Florida, (the “Commission”), by Resolution No. 01-12, duly adopted on January 3, 2012 (the “Resolution”) and Ordinance No. 44-11, duly adopted on January 17, 2012 (the “Ordinance”), did propose to amend the Charter of the City to provide: (i) that the terms of office for the Mayor and other City Commission Members be extended from two years to three years, said Ordinance and Resolution having further provided and directed that notice of said Referendum is given by publication in accordance with state law, City Charter and City ordinance; and WHEREAS, due and regular notice of said Referendum has been published in the Palm Beach Post and El Latino Semanal Inc. newspapers of general circulation within the City and said publications having been made in English and in Spanish respectively, each once in the fifth week prior to the week in which the Referendum was held, at least 30 days prior to March 13, 2012 and in the third week and seven days prior to the date the Referendum was held, to wit March 13, 2012; and WHEREAS, the Supervisor of Elections of Palm Beach County has provided the Commission with the results of the Referendum for the purpose of canvassing the returns and declaring and certifying the results thereof; and WHEREAS, said Referendum has been duly and properly held in accordance with law and that a copy of the certificate certifying the results of the Referendum to the Florida Department of State (in substantially the form attached hereto as Exhibit “A”), has been delivered to this Commission for the purpose of declaring and certifying the results thereof; and 2 RES. NO. 17-12 WHEREAS, the official returns of said Referendum delivered to this Commission by the Supervisor of Elections reflect that the total numbers of votes cast in the Referendum by the qualified electors residing in the City ___DISAPPROVED____ amending the Charter of the City to provide: (i) that the terms of office for the Mayor and other City Commission Members be extended from two years to three years. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the Commission at this meeting duly held, having received the results from the Supervisor of Elections, hereby canvasses the returns of said Referendum and determines, finds, declares and certifies the results thereof with respect to the Question as follows: QUESTION 1 Charter Revision relating to the length of terms and term limits for the Commission Members and Mayor Currently, the Commission Members (including the Mayor) serve two-year terms, limited to three consecutive terms. The Charter Amendment proposes three-year terms, limited to three consecutive terms as well as clarifying the applicability of such change as provided in Ordinance No. 44-11. If passed this amendment shall apply to the Commissioners and Mayor elected in March 2013 and thereafter. Should the above-described Charter Amendment be adopted? (a) The total number of votes cast in such Referendum by said qualified electors residing in the City that voted “For Approval” was 1,236. (b) The total number of votes cast in such Referendum by said qualified electors residing in the City that voted “Against Approval” was 2,080. (c) A majority of the votes cast in such Referendum by such qualified electors in the City _DISAPPROVED___ amending the Charter of the City to provide: (i) that the terms of office for the Mayor and other City Commission Members be extended from two years to three years. Section 2. That said Referendum was in all respects conducted in accordance with law, and that all steps in connection with and preceding such Referendum have been duly, regularly, lawfully taken and that the statutes and constitution of the State of 3 RES. NO. 17-12 Florida, the City Charter and City ordinances have been duly complied with in accordance with all their provisions. Section 3. That a true and correct copy of the certified results shall be filed by the Commission with the Florida Department of State in substantially the form attained hereto as Exhibit “A” (the “Certificate”) and that the Commission shall secure an affidavit of publication from the publishers of the Palm Beach Post, and El Latino Semanal Inc. attesting to the publications of the notice of the Referendum (the “Affidavit”). Section 4. That said returns shall be entered and recorded in the minutes of the Commission; and this Resolution, the Affidavit and Certificate shall be recorded in the minutes of the Commission. Section 5. All resolutions or parts thereof in conflict or inconsistent herewith are hereby repealed insofar as any conflict or any inconsistencies exists. Section 6. That this Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED in special session on this 15th day of March, 2012. CITY OF DELRAY BEACH, FLORIDA ________________________________ M A Y O R ATTEST: ________________________________ City Clerk EXHIBIT “A” CERTIFICATE OF CITY CANVASSING BOARD CITY OF DELRAY BEACH, FLORIDA REFERENDUM MARCH 13, 2012 STATE OF FLORIDA PALM BEACH COUNTY Pursuant to the requirements of Section 100.351 of the Florida Statutes, we, the undersigned, Nelson S. McDuffie, Mayor of the City of Delray Beach, Angeleta E. Gray, Vice-Mayor, Thomas F. Carney, Jr., City Commissioner, Jay Alperin, City Commissioner, and Adam Frankel, City Commissioner do hereby certify that on the 15th day of March 2012 A.D., we canvassed the votes as shown by the records on file in the Office of the Supervisor of Elections. WE do hereby certify from said returns as follows: That for the City of Delray Beach, Florida, Referendum, the whole number of votes cast was _________ votes of which number the City electors voted in the following manner in connection with the referendum listed below. QUESTION ONE “For Approval” received _______ Votes “Against Approval” received _______ Votes Witness our hands and seal this the 15TH day of March, 2012. ________________________________ Nelson S. McDuffie, Mayor ________________________________ Angeleta E. Gray, Vice-Mayor ________________________________ Thomas F. Carney, Jr., City Commissioner ________________________________ Jay Alperin, City Commissioner ________________________________ Adam Frankel, City Commissioner MEMORANDUM TO: Mayor and City Commissioners FROM: Randal L. Krejcarek, PE, LEED AP, GISP, City Engineer Richard C. Hasko, PE, Environmental Services Director THROUGH: David T. Harden, City Manager DATE: March 5, 2012 SUBJECT: AGENDA ITEM SP.2 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 RESOLUTION NO. 15-12/JPA/FDOT/DOWNTOWN ROUNDABOUT SHUTTLE ITEM BEFORE COMMISSION Request adoption and authorization for the Mayor to execute Resolution No. 15-12 approving a Joint Participation Agreement (JPA) with the Florida Department of Transportation (FDOT) for 50% reimbursement of operational and capital costs associated with Delray's free shuttle service. Total project cost is estimated at $600,000. Project #12-064. BACKGROUND At the January 17, 2012 Commission meeting approval was sought, and granted, to enter into a JPA with FDOT to fund the City's free shuttle. The City was awarded a 50% matching grant from the FDOT. This grant will fund both operational and capital costs of the Delray Beach shuttle for approximately one year. Total cost of the JPA is $600,000, with $400,000 earmarked for operational expenses (drivers and vehicle maintenance) and $200,000 earmarked for capital expenses. The capital expenses will be to purchase trolley type vehicles. The Community Redevelopment Agency has committed $300,000 to fund the required match of this grant. FDOT also requires adoption of the attached resolution which was inadvertently not included with the January 17th agenda item. RECOMMENDATION Staff recommends approval. RESOLUTION NO. 15-12 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA APPROVING A JOINT PARTICIPATION AGREEMENT WITH THE STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION TO PROVIDE SERVICE DEVELOPMENT FUNDING TO THE CITY OF DELRAY BEACH TO ENHANCE AND/OR EXPAND THE DOWNTOWN TROLLEY SERVICES LOCATED WITHIN THE CITY OF DELRAY BEACH; PROVIDING FOR CONFLICTS; PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Delray Beach Florida desires to approve the Joint Participation Agreement with the State of Florida Department of Transportation to provide service development funding to the City of Delray Beach to enhance and/or expand the downtown trolley services located within the City of Delray Beach. WHEREAS, the City Commission authorizes the execution of the Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA: Section 1. That the recitals set forth are incorporated as if fully set forth herein. Section 2. The City Commission of the City of Delray Beach authorizes the entry in the Joint Participation Agreement, related to Financial Project No. 431947-1-84/94-01, between the City and the Florida Department of Transportation and authorizes the execution thereof. PASSED AND ADOPTED in special session on this the ____ day of ______________, 2012. ___________________________________ M A Y O R ATTEST: ________________________ City Clerk MEMORANDUM TO: Mayor and City Commissioners FROM: R. Brian Shutt, City Attorney DATE: March 8, 2012 SUBJECT: AGENDA ITEM SP.3 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 SETTLEMENT CONTRIBUTION/PALM BEACH COUNTY/INSPECTOR GENERAL ITEM BEFORE COMMISSION Settlement contribution regarding the lawsuit filed by fifteen municipalities, including the City, against Palm Beach County related to the funding for the Inspector General. BACKGROUND In November 2011 the City, along with fourteen other municipalities, filed suit against Palm Beach County regarding a ballot question and adoption of an ordinance related to the funding for the Inspector General. Both sides, through their attorneys, have met several times regarding the lawsuit in an effort to come to a resolution. At this time it appears that the County Commission will be discussing a possible revision to the ordinance that provides for a different funding mechanism than what was presented to the municipalities by the County. The revision would provide that a charge of .25% will be placed on certain contracts entered into between the City and its vendors where the fee would be paid by the vender. If the ordinance is adopted by the County it would apply to contracts entered into by the municipalities after the adoption of the ordinance. In furtherance of settlement negotiations it was suggested that the municipalities may want to offer some amount of funding to the County in order to help offset the cost of the IG to date. Although the City was billed by the County, under the current ordinance, the City has not remitted payment due to the ongoing lawsuit. RECOMMENDATION Commission discretion. MEMORANDUM TO: Mayor and City Commissioners FROM: Vincent Nolan, Economic Development Director Richard J. Reade, Sustainability Officer/PIO THROUGH: David T. Harden, City Manager DATE: March 8, 2012 SUBJECT: AGENDA ITEM WS.1 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 CONGRESS AVENUE CORRIDOR STRATEGIC MARKETING PLAN & CITYWIDE ECONOMIC DEVELOPMENT INCENTIVES ITEM BEFORE COMMISSION David J. Wilk, from Sperry Van Ness, and City staff will provide the City Commission with a presentation and recommendations for creating a Congress Avenue Corridor Strategic Marketing Plan & Citywide economic development incentives to promote growth within the City. BACKGROUND David J. Wilk, National Director of Corporate Real Estate and Advisory Services for Sperry Van Ness Commercial Real Estate Advisors and Corporate Valuation Advisors, will provide the City Commission with a report on the development of a Congress Avenue Corridor Strategic Marketing Plan. Following Mr. Wilk’s presentation, Vin Nolan, Economic Development Director, and Rich Reade, Sustainability Officer/PIO, will provide the City Commission with a presentation and recommendations on proposed Citywide economic development incentives to be utilized to spur development activity along Congress Avenue and throughout the City of Delray Beach. Mr. Wilk was hired by the City in December 2011 to develop an economic development strategy for the Congress Avenue Corridor through repositioning key properties and marketing/branding strategies that optimize challenging real estate assets within this area of the City, in particular the former Office Depot property. Further, Mr. Wilk will provide the City with the types of industries and businesses that would most likely fit within the Congress Corridor, including the former Office Depot property, and will recommend a marketing/branding plan to attract these companies to our community. In an effort to position Congress Avenue and the City of Delray Beach as an attractive location for new and/or expanding businesses, it is important to identify and develop incentive opportunities (i.e., financial and non-financial) that can be utilized in partnership with the Marketing Plan that is being developed by Mr. Wilk. As a result, staff will present information on the types of incentives that are offered by other local and state communities that are considered to be aggressive in targeting economic development opportunities. Further, a comprehensive incentive program will be recommended for implementation. **Please note that both presentations will be provided to the City Commission prior to the Workshop meeting. CREATING A STRATEGIC MARKETING PLAN CONGRESS AVENUE CORRIDOR Delray Beach, FL March, 2012  Scope and Objectives – Mission Statement  Current Situation Analysis  Activities to Date and In Process  Initial Focus Areas  Market Observations  SWOT Analysis – Delray Beach and Congress Avenue  Initial Branding Direction  Corridor Maps & Conceptual Plans  Critical Ingredients for Success  Implementation Framework and Phasing  Funding Recommendations  Next Steps CONTENTS  Create a strategic marketing and branding plan that brings new economic development, jobs, and demand for real estate along Congress Avenue in Delray Beach.  A real estate branding strategy that repositions key underutilized properties along Congress Avenue will transform this Corridor into a catalyst for new private investment. SCOPE & OBJECTIVES – MISSION STATEMENT  The Congress Avenue Corridor in Delray Beach, although right off I-95, is currently comprised of multiple vacant parcels, vacant offices, and a disjointed mix of uses.  The office real estate segment in the Corridor has not been strong for years because of current aesthetics, a lack of “sense of place”, and lackluster market conditions.  The 550K SF vacant, former Office Depot property (“IWA”) is a major “eyesore” and stands in the way of the Corridor realizing its upside potential.  IWA, the Arbors and Levenger complexes represent about 80% of the Delray office market with vacancy rates of between 60% and 100%.  There are limited services for office users in this corridor, such as restaurants, coffee shops, retail, or other offerings.  The Corridor contains various aesthetically challenged non-office properties presenting challenges in attracting office users, especially compared to Boca.  New businesses interested in locating in southern Palm Beach County are not currently being brought to the Corridor due to a lack of financial incentives and desirability. CURRENT SITUATION – CONGRESS CORRIDOR IN DELRAY  Market reconnaissance on vacant and available properties in Delray and Boca, including the most recent transactions along Congress.  Meetings with property owners, businesses, brokers, BDB, and other key stakeholders to gain insights and invite them into our strategic marketing process.  Gained market perspectives on supply & demand for commercial, industrial, healthcare, lifestyle, institutional, and residential uses.  Developed a SWOT analysis with recommendations on the best targeted uses for redeveloping Congress Avenue and IWA.  Made general recommendations to City Staff to build an economic development and incentive package to facilitate bringing new deals to Delray Beach.  Formulating a new brand and market identity that will rejuvenate Congress Avenue in Delray Beach.  Working to transform the IWA property into a demand generator for new office users and a new hub of innovation and lifestyle connected uses for the community. ACTIVITIES TO DATE AND IN PROCESS  Existing Conditions along the Congress Avenue Corridor  What realistic options exist in Delray’s market to transform Congress Ave. Corridor?  How critical is the redevelopment of the IWA site in reinventing the Corridor and bringing new businesses to Delray?  How can aesthetics along Congress be improved to elevate the feel of the area.  Market Observations and Unlocking Future Corridor Potential  What types of retail, office, lifestyle, educational, medical, and other uses would work along the Congress Avenue Corridor between Boca and Atlantic Ave?  What branding strategy for Congress Avenue Corridor in Delray will capture market attention and generate short-term and permanent demand?  Community Participation and Teaming Success  What processes and tools are critical to building a new market identity for Congress Avenue Corridor in Delray with BDB, Enterprise Florida, and potential users?  Infrastructure and Funding Needs  CRA District, Special Development District, Enterprise Zone, & Foreign Trade Zone Designations.  Economic Development & Incentives to support recruitment, retention, & expansion, and encourage private investment. INITIAL FOCUS AREAS  The south Florida office market is still trying to recover from the last few years of downturn and although trends are turning positive, the pace of recovery will be gradual.  The Boca/Delray Beach office market comprises 12,825,000 SF and currently has a vacancy rate of about 30%, and negative, net absorption of (309,000) SF for 2011.  The Delray Beach office market comprises 1,442,000 SF and has a current direct vacancy rate of 56.6%. The IWA property represents 550K SF or 38 % of the total space.  With an overall vacancy rate for Delray of over 50%, it could take five to ten years to absorb this space if left to market forces.  The Arbor’s new ownership is a great addition to Delray, and should add new energy to the market along Congress Avenue although their 250,000 SF is almost 20% of the Delray market.  There is current demand for office in downtown Delray, but there are no large blocks of space available, so repositioning Congress as a new destination connected to downtown is possible.  Challenges for Congress Avenue include the “white elephant” IWA site, limited appeal of Delray for office users, and the need for more than just Class A office in the future to reach the next level.  The key to capturing new demand along Congress Avenue in Delray is to create a new mix of uses that are branded and presented in a way that will lead to a visible market reaction. MARKET OBSERVATIONS – OFFICE POTENTIAL  Given the current glut of office space in Boca and Delray, and the projected pace of absorption, relying on the office sector alone to elevate Congress Ave going forward is not justifiable.  Other market segments are necessary to take Congress to the next level, including retail, institutional, healthcare, educational, multi-family, and restaurants/hospitality.  Green technology, sustainable and solar powered redevelopment can also be strong market differentiators for the Corridor to help “break out” of the current doldrums.  Delray’s connection with Boca at the southern border along Congress can be leveraged to generate more potential demand for both cities from I-95.  The first steps in the rejuvenation of the Corridor should include repositioning the IWA property into a sustainable mixed-use development, along with some key commercial parcels along the Boca, Delray border.  In conjunction with the potential new mix of uses coming into the Corridor, the overall aesthetics of Congress Avenue need to elevated.  Given the possibility of budget cuts, current market conditions, and a slow economic recovery, reinventing the Corridor will not be easy, but a strong new strategy and branding will work. MARKET OBSERVATIONS – CONGRESS CORRIDOR SWOT ANALYSIS – CONGRESS AVE. CORRIDOR -DELRAY Strengths Weaknesses Opportunities Threats • Connecting to downtown Delray’s success in a way that attracts new businesses to Congress • Strategic alliance with Boca for branding and demand uplift based on shared borders • Continuing the MedUTech concept north of Boca along Congress into Delray • Development of vacant commercial land now available right off I-95 on Congress • Working with Delray Medical Center and FAU to attract new healthcare users to Congress Ave • IWA continues to stay dormant and destabilizes the absorption of existing office space • Numerous vacant land parcels available for sale with limited buyers and feasibility for years • Boca and Palm Beaches markets have millions of SF of vacant space that competes with Delray • Public schools are not well perceived and present challenges for attracting new residents • Congress Avenue in Delray is left to market forces and remains “stuck” with no clear vision •Excellent access to I-95, ports, rail, airports, universities, and hospitals •Real estate prices are generally lower than Boca and Palm Beach • Delray Beach has a track record of success in redevelopment •MROC zoning is perfect for the uses necessary to redevelop land on Congress and good utilities •Boca leadership and BDB are ready to support a new Congress Ave strategy • Vacancy and status of IWA and lack of any market energy or excitement • Certain properties diminish the potential uplift of the Corridor •Lack of nearby food and retail services for office occupancy • No competitive package of incentives and/or funding for users •No “sense of place” along Congress Avenue that would help to draw new business  “Delray Innovation Corridor”  Technology, Research, Education, Aspiration, Talent (“TREAT”)  Corporate Headquarters and Regional Offices  Tourist and Destination Demand From I-95  New Food, Lifestyle, Retail & Leisure Uses  Solar-Power & Green Technology Powering the New Mix of Uses INITIAL BRANDING DIRECTION  Reposition the IWA property into the “Delray Innovation Park”.  Main Street Entrance with Specialty Retail Uses/Restaurants  Corporate/Regional Headquarters Office (Germantown Bldg.?)  Technology/Educational Campuses -Adult, STEM, and Children  Multi-Family Units -FAU Med, Young Families & Professionals  Park and Open Space for Community Use (Gazebo, Concerts)  Model of Sustainability and Innovative Land Uses INITIAL BRANDING DIRECTION “DELRAY INNOVATION CORRIDOR” – I-95 TO ATLANTIC “DELRAY INNOVATION CORRIDOR” – I-95 TO LINTON CONCEPTUAL PLANS – “DELRAY INNOVATION PARK” Scenario 1 Scenario 2  The “Delray Innovation Corridor” needs a competitive financial incentive and economic development package for BDB.  Aesthetic improvements, infrastructure, CRA District, FTZ formation, and accelerated entitlements for new users.  IWA owners working with the City on the new strategic marketing and branding plan for redeveloping their property into the “Delray Innovation Park”.  A “green” trolley link and/or transit connection between Congress, the rail stations, and Downtown Delray to shuttle people between the destinations.  Creating a “PR” story and branding/marketing collaterals about the transformation of IWA property into “Delray Innovation Park”.  Partnering with Boca and Boynton along the Congress Avenue corridor to accelerate everyone’s success. CRITICAL INGREDIENTS FOR SUCCESS  Form Public/Private Partnership with City as Lead  Gain control of the IWA site or execute a development agreement with current owners and/or new developers.  Develop and entitle a new master plan for the IWA property under MROC code.  Target Users for Various Economic Units – South to North  Parcels along Boca/Delray border -restaurant/hospitality cluster right off I-95.  Corporate office on 7.99 acres cadi-corner to IWA.  Corporate Headquarters site on IWA property as part of mixed-uses.  Innovation Park at IWA (powered by a solar farm)  Science and technology innovation  Medical & Healthcare  Community college, or University consortium  Multi-Family Units – Part of IWA Village Plan and geared to FAU Med.  Cultural and Recreational – Open Public Space and Walking Trails.  Landscape Buffers along industrial frontage and other key stretches on Congress.  Build initial momentum by repositioning IWA and southern I-95 parcels IMPLEMENTATION FRAMEWORK & PHASING  Aesthetics and Infrastructure – Public Improvements  Design a landscaping and beautification plan for the Corridor.  Create landscape buffers for industrial and “tired” residential areas.  Transform the Corridor with great aesthetics & lifestyle connectivity.  Types of Non-Traditional Funding  TIF District, FTZ, Enterprise Zone Designations  Solar Farm and other green technologies to generate special tax credits  Create a Corporate Headquarters Strategic Fund  Pioneer an “Innovation and Technology Company Development Act” for FL  Science and Technology Innovation tax credits  Medical & Healthcare research & development credits  Educational and IT Vocational Degree Programs with Training Credits for Companies  USDA Funding for Agri-Technology, Logistics, and Innovation Companies  EB-5 Regional Center Funding – Foreign Direct Investment Capital FUNDING RECOMMENDATIONS  Refine and polish the conceptual corridor plan and branding collaterals that capture the new mix of uses comprising the “Delray Innovation Corridor”.  Finalize the economic development incentive package and branding refinements to make the “Delray Innovation Corridor” credible.  Present the strategy and new brand to the City Commission, BDB, Chamber of Commerce, and key stakeholders to build excitement and support for the concept.  Fast-track the process for the IWA property redevelopment to be entitled for new uses and become the “Delray Innovation Park”.  Facilitate new deals in process along the Delray/Boca border up to Linton with local brokers to build immediate momentum and stimulate more demand.  Finalize the market awareness package for BDB including the Economic Development and Financial Incentives Plan for the “Delray Innovation Corridor”. NEXT STEPS QUALIFICATIONS – DAVID J. WILK, CRE, MAI Mr. Wilk is National Director of Corporate Real Estate and Advisory Services for Sperry Van Ness (“SVN”) and Corporate Valuation Advisors (“CVA”). David creates value in today’s market for corporations, private equity firms, developers/investors, and institutions (universities, hospitals, governmental entities) by focusing on real estate strategies that generate new earnings, cost savings and bottom line impact. Within these types of value propositions, Mr. Wilk also provides valuations and market studies, economic development strategies for municipalities through repositioning key properties, and marketing/branding strategies that optimize challenging real estate assets. Mr. Wilk was formerly National Managing Director of Duff & Phelps Corporate Real Estate Advisory Group from 2008 through 2009 after they acquired Greystone Realty Advisors, a boutique advisory firm he founded in 1997. From 1995 to 1997 Mr. Wilk was Regional Director of Corporate Real Estate Services for Ernst & Young LLP in the Middle Atlantic. From 1993 to 1995, Mr. Wilk was Managing Director of the Real Estate Valuation Group for Arthur Andersen in Philadelphia after Andersen acquired Wilk & Associates, Inc., a real estate consulting company founded in 1987. From 1977 to 1987, Mr. Wilk held senior management positions with Valuation Research Corporation, Arthur D. Little, and was National Director of Valuation Services for Kenneth Leventhal & Co in California. Mr. Wilk is an Adjunct Professor and Co-Founder of the Real Estate program at the University of Delaware Lerner Business School. Courses taught since 1988 include Real Estate Finance (FINC 417), Real Estate Development & Investment (FINC 467), and MBA Real Estate Finance (FINC 854). He earned a Bachelor’s Degree in Finance from the University of Delaware and is completing a sequenced Masters and Doctoral Program in Corporate Real Estate Studies through Johns Hopkins University. Mr. Wilk is a Counselor of Real Estate (CRE) and a Member of the Appraisal Institute (MAI) since 1985. He is a Licensed Real Estate Broker and Certified General Appraiser in the State of Delaware. He has also qualified as an expert witness in numerous State and Federal court jurisdictions on a national level. Mr. Wilk has 35 years of real estate experience on commercial, industrial, residential, agricultural, governmental, and institutional real estate projects including having worked in 48 states in the U.S., Canada, Mexico, Europe, South America, the Caribbean, Asia, and the South Pacific. Fortune 500 clients served have included; Johnson & Johnson, Chevron, GE, Berkshire Hathaway, Agilent Technologies, MBNA America Bank, Hercules (Ashland), DuPont, Comcast, AT&T, Exelon Energy, Bristol Myers Squibb, PNC Financial, Bank of America, AstraZeneca, Sun Company, and J.P. Morgan Chase. Real estate consulting highlights from Mr. Wilk’s career include; Pebble Beach, Aspen Ski Resorts, 20th Century Fox Film Studios, Irvine Ranch, Madison Square Garden, Santa Anita Racetrack, Dover Downs, Elvis Presley Enterprises, Hyatt Regency & Four Seasons Resorts in Hawaii, Chevron’s Huntington Beach Company, Marriott’s Great America Theme Parks, Power Plant in Baltimore, Art Deco Hotels in South Beach, Pennsylvania Convention Center and Philadelphia Marriott Hotel, Comcast Cable Systems, Bikini Atoll in Micronesia (South Pacific) and Fort DeRussy in Waikiki, Hawaii. City of Delray Beach Citywide Economic Development Incentives Recommendations Presentation by Vincent Nolan, Economic Development Director Richard J. Reade, Sustainability Officer/Public Information Officer March 15, 2012 Overview Existing Economic Conditions Congress Avenue Corridor Statistics – Assessed valuations have decreased more than $106 million over past 5 years: – No substantial corporate development over past 3 to 5 years – Alta Congress Residential Project ~ only recent major development • 369 apartments (including 74 workforce units) under construction • Included within the Congress Park Office Park • Close proximity to Tri-Rail Station CONGRESS AVENUE ASSESSED VALUE ‐2006 CONGRESS AVENUE ASSESSED VALUE ‐2011 $376,770,522 $269,892,630 Overview Existing Economic Conditions CRA Economic Development Incentives (Available only within CRA District) – 6 new incentive programs established in 2010 & 2011 – $2 million allocated towards economic development projects – Nearly $1 million in incentives awarded: • Large Projects: Approved -2 new hotels & relocated law office Planned -several office buildings & 3rd hotel • Small Projects: Approved -various property renovations as well as new & expanding employers – 175 new jobs created (projected) – Over $20 million in new assessed valuations (projected) Overview Existing Economic Conditions Operating Without Citywide Economic Development Program – Promote job creation – Preserve existing jobs – Increase property valuation ~ long term, tax base – Improve business image and visibility of Delray Beach Need Direction on Economic Development Activities to Target – Recruitment & Relocation ~ new businesses to Delray Beach – Retention ~ keeping our long-standing companies from looking elsewhere – Expansion ~ assisting businesses with growth & market expansion – Support Start-Up & Second-Stage Companies ~ higher risk/reward – Renovation & Redevelopment ~ improve aesthetic appeal of City business districts State & County Financial Incentives – Limited availability due to lack of funds to support required local match – Not fully utilizing available state & county incentives (i.e., State Urban Job Tax Credit Program) Overview Existing Economic Conditions Urban Job Tax Credit Program – Up to $1,500 in state funding per job created within targeted areas and for specific industries (other qualifications also apply) Economic Development Programs Review of Other Communities – Delray Beach is not just competing with neighboring municipalities and surrounding counties, we are up against other parts of the state and the country in trying to attract/retain target industries and businesses. – We reviewed (and should continuously review) what other successful communities are offering to attract/retain their targets (i.e., jobs, businesses, etc.) – Conversations & meetings with municipalities considered to be aggressive in targeting economic development opportunities. Some of the “best practices” discovered include: Economic Development Programs Review of Other Communities City of Palm Beach Gardens, Florida – Corporate team approach utilizing key development staff & City leadership – Dedicated reserve allocated ($1 Million) -“Job Fund” -to meet financial incentive needs – Flexible grant & loan programs – Dedicated funding to support marketing and promotional materials City of Boca Raton, Florida – Offer wide-ranging incentive programs – Utilize unrestricted reserve funding (not a dedicated amount) to meet financial incentive needs • Since 2010 -$680,000 committed over a defined period of time to 12 companies that created/retained approx. 3,400 jobs (avg. $200 per job in City incentive funding) • Since 2010 – City Incentives committed were leveraged to bring in $2.9 million in state economic funding and $440,000 from Palm Beach County (avg. $982 per job in state and/or county funding) Economic Development Programs Review of Other Communities City of North Port, Florida – 25 member Economic Development Advisory Board – Dedicated reserve ($3 Million) allocated to meet financial incentive needs – Recurring annual budget ($495,000) allocation to support staff, marketing & financial incentives • $100,000 is dedicated to economic development marketing/promotion • Multiple economic development staff members City of Boulder, Colorado – Flexible rebate program (Rebate City development fees) – Micro-lending program City of Sunrise, Florida – Direct financial incentive grant programs to fulfill state & county match requirements ~ ranging from $50,000 to $1 million City of Wellington, Florida – Streamlined (expedited) permitting – Development incentives (i.e., increased density) Economic Development Programs Review of Other Communities Other Economic Development Tools Used By Municipalities – Land donation for specific types of use – Ad-Valorem (property) tax exemptions/rebates – Waiving of various City fees – Enterprise zones – Amend Comprehensive Plan & Zoning Code Citywide Economic Development Goals & Strategies Goals – Continue to improve the perception that Delray Beach is business friendly and a viable corporate destination – “Level the playing field” by matching economic development tools offered by locally & regionally competitive communities – Grow sustainable & livable wage jobs – Encourage new & retain existing entrepreneurs (i.e., start-ups) – Increase Delray Beach tax base Citywide Economic Development Goals & Strategies Strategies: Non-Fiscal – Ongoing review of overall development & permitting processes (i.e., MROC zoning & expedited permitting) – Create new Delray Beach Economic Development Action Team to work with corporate prospects – Create new business visitation program for effective retention/expansion of local businesses – Continuous improvement of www.BusinessDelray.org web site and other related web sites in Delray Beach (City/Chamber/CRA/DDA) for consistent messaging – Constructive & continued engagement with strategic partners • Enterprise Florida & Florida Office of Economic Opportunity • Business Development Board (BDB), Palm Beach County Economic Development Office & Economic Council of Palm Beach County • Delray Beach CRA, DDA, DBMC & Chamber of Commerce • South County neighboring municipalities Citywide Economic Development Goals & Strategies Strategies -Fiscal – Implement economic development financial incentives – Step-up branding & marketing/promotion activity – Create sustainable economic development systems • Create CRA District along the Congress Avenue Corridor to improve the aesthetics and infrastructure necessary for a true corporate environment, support financial incentives and to fund marketing/promotion efforts • Collaborate with state legislative delegation to create an Enterprise Zone to support the Delray Innovation Corridor Recommendations 1. Adopt City Resolution to provide local match for state and county incentive programs: • Qualified Target Industry Refund Program (QTI) • Governor’s Quick Action Closing Fund • Economic Development Transportation Fund Road Fund 2. Commit City’s unrestricted reserve funds ($1 to $2 million) to support City incentives & local match for county and state incentives 3. Establish annual budget allocation for economic development activities: • Grants & incentives – smaller projects • Citywide branding • Citywide marketing/promotion Recommendations 4. Develop grant/loan incentive programs to encourage good economic development. Program examples may include: • Job Growth (business development) incentive grants/loans • Extraordinary Opportunity/Alternative incentive program • Ad-Valorem (property) Tax Exemptions and rebates • Economic gardening (technical assistance) grants • Workforce Development Assistance and Training grants • Green grants/loans (PACE – Property Assessed Clean Energy Program) • Rent Subsidies 5. Request state legislative delegation to support City’s effort to establish Enterprise Zone for Congress Avenue area 6. Authorize development of CRA district along Congress Avenue to support the “Delray Innovation Corridor” Citywide Economic Development Incentives Recommendations MEMORANDUM TO: Mayor and City Commissioners FROM: David T. Harden, City Manager DATE: March 7, 2012 SUBJECT: AGENDA ITEM WS.2 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 DISCUSSION OF POSSIBLE CHARTER REVIEW COMMITTEE ITEM BEFORE COMMISSION The item before Commission is a discussion regarding a possible charter review committee. BACKGROUND The possibility of conducting a charter review has been raised by the Commission. The last charter review was in 2001. This item is on the agenda for discussion by the Commission. Two questions need to be addressed: (1) Should the City have a Charter Review Committee to review the City Charter at this time? (2) If the answer to the first question is yes, then should the Committee be given direction to review certain sections of the Charter, or should they be asked to review the entire charter? The previous committee appointed in 2001 (which was named the "Charter Revision Committee") consisted of eleven members appointed by the Mayor and Commissioners. Each member of the Commission nominated five individuals for apointment to the Committee (except the Mayor actually only nominated three) and then each Commissioner appointed two (2) members. In addition the Mayor also appointed an additional member to serve as the Chairperson. Each appointment was approved by the full Commission. If the Commission decides to set up a Charter Review Committee, then the size of the Committee and how its members are to be selected should also be discussed. Do Commissioners wish to recruit members to appoint to the Committee, or do you wish to solicit applications and appoint members in the same manner as other boards? MEMORANDUM TO: Mayor and City Commissioners FROM: Robert A. Barcinski, Assistant City Manager THROUGH: David T. Harden, City Manager DATE: March 8, 2012 SUBJECT: AGENDA ITEM WS.3 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 DISCUSS CHANGES TO SPECIAL EVENT POLICIES AND PROCEDURES ITEM BEFORE COMMISSION Commission is requested to discuss possible changes to the Special Event Policies and Procedures and to provide direction to staff. BACKGROUND Over the last couple of months, Commissioners have discussed and proposed possible changes to the Special Event Policies and Procedures to increase revenues and recoup costs and to possibly limit the number of events. Based on these discussions, staff is proposing options for Commission’s consideration to meet these goals. Attached as back up information are: (1) a copy of the Special Event Policies and Procedures, (last changes were made April 29, 2011); (2) a spreadsheet listing events and costs for FY10-11; (3) a spreadsheet listing events and costs starting October 1, 2011 through February 29, 2012; (4) a list of events from March 1, 2012 through September 30, 2012 with last year’s costs; and (5) Old School Square grounds/Park rentals. I will try to get this information in calendar format prior to the workshop meeting. Options for consideration: 1. Increase the charge for overtime costs for the Delray Beach Marketing Cooperative and Old School Square to 50% versus 35%, and eliminate the grandfather clause and charge all other events 100% of overtime costs. All events are charged 100% for equipment rentals, such as barricades, light towers, stage use, trash boxes and towing fees. They are not charged for regular time, use of City generator or use of City barricades. There are six (6) events that were grandfathered in at the 75% rate. These are: St. Patrick’s Day Parade, Garlic Fest, Delray Affair, Cinco de Mayo, AVDA 5K run and the Asian Food Festival. Changing the above percentage charges would increase revenues by approximately $24,500 per year. At past meetings, it was the consensus of Commission to make this change. 2. Charge all events an administrative charge for staff time spent on an event which is not now being charged. This would include staff time spent at event planning and recap meetings, time spent during regular work hours and any supervisory time that is not compensated for working during the event. Currently police supervisors, (lieutenants and above) are paid a stipend at sergeants top out rate for time worked over 40 hours and we charge the event producer for this time. The Fire Department staffs all events with personnel at the rank of captain and below who are paid overtime. For the 4th of July and Delray Affair, a Chief Officer is assigned and they receive comp time. Parks Maintenance supervisors are not paid overtime for events, but receive comp time for working an event. Public Works supervisors are neither paid nor do they get comp time for working an event. My time and my assistant’s time is somewhat offset by the permit fees. Other staff members that perform tasks which are not recouped are the Purchasing Manager and Finance Accounting Clerk. We also do not charge an event producer for staff time spent on the event during regular work hours. City Commission is requested to consider that a percentage of between 10% -15% of total City costs (excluding rentals) be charged as an Administrative fee to help in cost recovery. This would be fairly easy to implement without putting additional administrative burden on staff. Consider 12.5%. 3. Deposits for New Events: Based on Commission action requiring a deposit for the Delray Rocks Music event, it appears Commission wants to require deposits as a policy for all new events. Items to consider are as follows: · Rate: What percentage of total cost would be charged? 50% seems reasonable. · Do you want to charge all new events a deposit, not just large ones? Some smaller events might have a difficult time in meeting this requirement. · How far in advance of the event would the deposit be required? Need to consider our existing policy, Section IV, A, which requires major event applications to be submitted 120 days prior to the event, intermediate events 90 days and minor events 45 days. If Commission decides to charge a deposit for all events, they might consider the following for payment of the deposit: Ø Major Event 8 weeks prior to event Ø Intermediate Event 4 weeks prior to event Ø Minor Event 2 weeks prior to event A deposit would not be recommended for existing events, only new events. 4. Limit Number of New Events: There has been some interest expressed by some of the Commissioners to limit new events and/or the number of events in a given week or month. Some options to consider are as follows: a. As policy, do not allow any new event at all. Our busiest months are now September through April. We do have some room on the calendar for events from May through August. b. Strictly enforce the event permit submittal times per Section IV, A of the policies for all events. In practice, I follow this policy for new events but give some latitude to our long time event producers. I would like to continue this practice. c. Strictly enforce the provisions of Section III of the policies. In the past waivers have been granted by Commission for the number of major events allowed in a given month. d. Add a provision to Section III of the policies that states “Events will only be allowed during three (3) weekends in any given month. 5. Eliminate co-sponsorships of events. We currently co-sponsor the following events: Holiday Parade, Boat Parade and Easter Sunrise Service. By co-sponsoring the event, we receive no revenue from the co-sponsor partner. Estimated additional revenue $14,500. RECOMMENDATION Consideration of changes to Special Event Policies and Procedures and provide staff direction and an implementation date for changes. MEMORANDUM TO: Mayor and City Commissioners FROM: Scott Aronson, Parking Management Specialist Richard C. Hasko, PE, Director of Environmental Services THROUGH: David T. Harden, City Manager DATE: March 5, 2012 SUBJECT: AGENDA ITEM WS.4 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 PROVIDE DIRECTION ON VALET PARKING PROGRAM OPTIONS ITEM BEFORE COMMISSION The item before the City Commission is to provide staff direction regarding valet parking program options. BACKGROUND The City Commission, at its meeting of December 6, 2011, discussed the current valet parking program. The Commission requested a review of the valet parking agreements and for multiple options to be presented to the Commission including the possibility of the City contracting directly with valet companies. Staff intended to address changes to the valet agreements once a decision was made concerning the Parking Study recommendations to go to a fee based program. It is noted that a fee based program throughout downtown creates a financial value per parking space which cannot be ignored when assessing valet queue fees, especially in the evenings where parking occupancy will likely exceed the 85th percentile. However, since the valet agreements are coming up for renewal at the end of this month, it is important that we have this discussion at this time. Since the mid 1990’s the City has had a valet parking program which allows the use of on-street public parking spaces to provide valet parking service to downtown patrons by entering into individual licensing agreements with participating establishments. The most successful component of this program is the requirement for licensees to lease private parking lots that are not already serving a required parking need when utilized. This provision increases the available parking in the area by several hundred parking spaces. When the program was implemented, Commission did discuss the possibility of the City running the program or contracting it out. The Commission, at that time, did not want to have to go out and lease lots from the private sector or assume the cost of liability insurance; and they did not feel we had the staff capabilities to operate the program ourselves. Also, they did not want one company to have a monopoly. The valet program currently utilizes 50 on-street parking spaces throughout the Central Business District. With current fees ranging from $125 per space, per month east of the Intracoastal Waterway (ICW) to $100 per space west of the ICW, the program generates $52,200 per year. An additional $19,200 per year is generated from the lease of 40 spaces, in the Federspiel Garage, at $40 per space, per month, to the Prime Steakhouse queue on SE 2nd Avenue. To demonstrate the program's potential, assume 500 spaces are collectively leased by valets. Applying a 1.75 turnover ratio results in the accommodation of 875 vehicles, with no additional impact to the available pool of public parking spaces. The resulting 16.2 vehicle per space turnover ratio far exceeds that of publicly used spaces during the same time period. Chapter 9 of the Parking Study suggested an independent study of valet parking. Other observations were included which could be implemented without incurring the cost of additional study. A. Reevaluation of the valet queue locations to meet current and potential future needs of the City. B. Consistency between locations portraying a unified system, making it apparent queues are public facilities. C. Maintaining consistently high levels of service. These improvements may be achieved by the following: 1. Maintaining the current program and increasing the monthly fee per space, with additional modifications to the agreements addressing items above. 2. Hourly Management Agreement: Advertise a Request For Proposal (RFP) for the management of the valet parking system. Criteria would include the ability to provide parking lot leases, insurance, past history, etc. The City, at its option, would enter into an agreement with the service provider. The City would pay an hourly fee for the services provided and receive all revenue generated by the vehicles parked. 3. Flat Fee Management: Issue a RFP for a flat fee management program, similar to above, however the service provider would propose a flat fee to the City, paid, weekly, monthly, or annually. In this scenario, the service provider would pay the City a fee for operating the valet queues. The service provider would keep revenue generated from performing the service. 4. In House Operation: Expand the Parking Division and take the program in-house, thereby controlling all aspects of service. This could be an opportunity to continually improve service while creating local jobs for Delray citizens. 5. RFQ: Advertise the opportunity for the licensing of each queue separately, or as a system. The City would then negotiate fees with the qualified vendors. It is noted, suggestions 2 and 3 would be directed toward Parking Service Providers. Of immediate concern is the impending automatic renewal of the existing Parking License Agreements on March 31, 2012. Modifications in 2011 included the automatic renewal of valet queues, subject to meeting certain criteria. During deliberations of subsequent requests to establish valet queues City Commission has reconsidered that provision. Consequently, it is recommended that all current agreements expire on March 31, 2012. Outside of option 1 above, time will be needed to properly implement the selected option. If an option other that option 1 is selected, staff recommends one-year renewal of all valet parking license agreements including a 20% fee increase; the agreements would then expire on March 31, 2013, or at such time notification is given by the City of earlier termination for the implementation of a revised program. REVIEW BY OTHERS The Parking Management Advisory Board, at their meeting of February 28, 2012, unanimously recommended retaining the existing program with no increase to fees. The Community Redevelopment Agency, at their meeting of March 8, 2012, supported the current valet program methodology, and they suggested working on fees with the licensees. They also recommended a six-month extension with no increase if another option is selected. RECOMMENDATION Staff is seeking Commission direction. DELRAY BEACH VALET PARKING PRESENTATION OBJECTIVES: VALET PARKING • EVALUATE CURRENT PROGRAM Review Parking Study Recommendations Assure Equity To City Provide Optional Valet Parking Programs Evaluate Current Program Secure City Commission Direction To Proceed CURRENT PROGRAM: VALET PARKING Reviewed case by case Since 2001 no new queues On Atlantic Avenue between Swinton Avenue & the ICW Valets use various designs for queue elements such as signage, uniforms, valet stands, etc. Private Lot Lease Requirement Significantly Increases Parking Inventory CURRENT PROGRAM: VALET PARKING Valet Queue Fees Are Currently $125/Space/Month East Of The ICW And $100/Space/Month, West Of The ICW A perception exists that revenue from valet parking operations are inequitable compared to the volume of valet queue traffic Recent modifications to the agreements caps fees for valet parking at $10, included requirements for price lettering size for better visibility and provided for validation programs for neighboring businesses PARKING STUDY RECOMMENDATIONS: VALET PARKING Reevaluate queue locations Create uniformity among queues Improve public access awareness Explore other program options CURRENT PROGRAM OPTIONS: VALET PARKING Modify current agreements to require consistent signage, uniforms, valet stands, etc., to provide public awareness Increase fees commensurate with volume of vehicles in the area Reevaluate queue locations for possible modification to meet current needs OTHER PROGRAM OPTIONS: VALET PARKING Advertise Fixed-Price Management RFP Provide Valet Services In-house Advertise Flat Fee Management RFP Advertise Request For Qualifications Options may require the City to provide spaces for the storage of vehicles FLAT-FEE MANAGEMENT PROGRAM: VALET PARKING Select most qualified bidder offering the best value for the management of the valet system Operator retains revenue, covers all expenses and assumes all liabilities Advertise a RFP identifying fee schedules, staffing, etc. City is paid a flat fee for the management of the valet system VALET PARKING Select most qualified bidder offering the best value for the management of the valet system City is charged an hourly fee for the all inclusive management of the valet system City retains all revenue generated FIXED-FEE MANAGEMENT PROGRAM: Advertise a RFP identifying scope of services including fee schedules, staffing, etc. Negotiated Services: VALET PARKING Shortlist respondents deemed most qualified to manage the program Negotiate best terms for City and Stakeholders Advertise Request For Qualifications Request proposals from 3 top rated respondents IN-HOUSE OPERATION: The City would manage valet parking queues. VALET PARKING The use of public parking spaces to store vehicles would reduce current parking supply Reevaluate queue locations, establish staffing levels, conduct hiring program Damage Claims, real or fabricated, require careful oversight and can be extremely costly There are substantial costs including significant expansion of Parking Services Division Closing comments: VALET PARKING Benefit of current private lot lease requirement is substantial The use of public parking spaces to store vehicles would reduce current parking supply Reevaluation of valet queue locations should be performed regardless of program selected Damage Claims, real or fabricated, require careful oversight and can be extremely costly STAFF RECOMMENDATION: VALET PARKING Require all signage to state PUBLIC VALET Consider licensees’ suggestion for longer agreement terms, (3 -5 years) Reevaluate valet queue locations Increase valet queue monthly fees Maintain current program It is noted, implementation of a fee based program may require additional examination of rates charged VALET PARKING MEMORANDUM TO: Mayor and City Commissioners FROM: Randal L. Krejcarek, P.E., LEED AP, GISP, City Engineer Richard C. Hasko, PE, Environmental Services Director THROUGH: David T. Harden, City Manager DATE: March 7, 2012 SUBJECT: AGENDA ITEM WS.5 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 DISCUSSION OF ON STREET PARKING REGULATION ITEM BEFORE COMMISSION This item is before the Commission for discussion of current on-street parking enforcement hours along Atlantic Ave and SR A1A. BACKGROUND The City currently regulates and enforces on-street parking limits along A1A and along East Atlantic Avenue, east and west of the Intracoastal Waterway (ICW), as follows: Street Location Enforcement Hours Metered Limit E Atlantic Ave West of ICW 8 am – 8 pm No 2 hr E Atlantic Ave East of ICW 8 am – 8 pm Yes 2 hr SR A1A Public beach 8 am -8 pm Yes 2 & 4 hr This information is presented for discussion by the Commission regarding the current parking enforcement hours. Commissioner Carney has suggested that paid parking (meters) should not be enforced until later in the morning at least on Atlantic Avenue, and perhaps not on A1A as well. Several questions need to be discussed. Does the Commission majority wish to change the hours for enforcing metered parking on Atlantic Avenue and/or A1A, either seven days a week or for certain days? If the meters are not enforced, then should the two hour time limit be enforced? Keep in mind that if the hours of enforcement are reduced we will lose revenue from both parking meters and parking tickets. MEMORANDUM TO: Mayor and City Commissioners FROM: Richard C. Hasko, P.E., Environmental Services Director THROUGH: David T. Harden, City Manager DATE: February 27, 2012 SUBJECT: AGENDA ITEM WS.6 -SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 DRAFT PROPOSALS FOR DRAINAGE DESIGN REQUIREMENTS ITEM BEFORE COMMISSION This is a presentation of draft proposals for the revision of LDR Sections 2.4.3, Submission Requirements and 6.1.9, Drainage Systems, addressing design requirements for storm drainage and surface water management systems, and mitigation of flood plain encroachment by new structures which could result in negative impacts to existing neighborhoods. BACKGROUND As infill development and redevelopment of properties occurs throughout the city, new development projects are required to conform to current regulations as they relate to drainage system design, minimum floor elevations, etc. This can result in a condition where new housing must be constructed at higher elevations than the existing surrounding structures, particularly in high hazard flood zones such as the barrier island neighborhoods. While our Land Development Regulations (LDR) mandate compliance with the requirements of the South Florida Water Management District (SFWMD) for drainage and surface water management designs and flood protection, those requirements generally apply to larger scale development than what typically occurs in Delray Beach and, in fact, typically exempt projects less than ten acres in area. In the past, we have had complaints from residents about flooding occurring in areas that have not historically been flood prone. This typically is the result of new buildings being required to set floor elevations significantly higher than existing structures in older neighborhoods. In order to build slab on grade structures, much of the development area must be filled to meet the current criteria. While allowable runoff from such parcels can usually be accommodated in the surrounding drainage system, the fill material necessary to construct at the required elevations displaces what was formerly available storage in the watershed or drainage basin. As a result, flood stages will increase in the surrounding neighborhood from rainfall events that historically caused no flooding. This is due to the reduction in available basin storage. The proposed LDR revisions attached are intended to address the issue of flood plain encroachment as well as establish specific minimum drainage design criteria that are not subject to exemption from SFWMD regulations based on project size. SECTION 2.4.3 (D) (D) Preliminary Engineering Plans (1) Preliminary engineering plans shall provide information and be in a format as required by Section 2.4.3 (B), Standard Plan Items. (2) Said plans shall be drawn on a topographic base (unless the use of spot elevations are previously approved by the City Engineer) with topographic features extended to a minimum of ten feet (10’) beyond the site including finished floor elevations of the nearest adjacent habitable structure abutting all site boundaries. All plans shall be drawn on a sheet which is 24” by 36”. (3) Said plans shall show the approximate location, dimensions and size, as shown in records of Delray Beach and/or field observations of all existing water, sewer, and drainage facilities along with streets, sidewalks and above ground improvements which provide service to and on the site. Notes shall state the disposition of all existing facilities including service lines, meters, etc. (4) Said plan shall show the proposed location, sizing, and design basis of water, sewer, fire suppression, and drainage facilities which are to serve the site, including pertinent calculations, and the method of providing service to the proposed structures. (5) Said plans shall show the method of providing service to proposed structures. (6)(5) Said plans shall show the location of proposed street lights and shall address the responsibility for installation. (7)(6) Surface water management calculation indicating the proposed system’s ability to meet storm water quality and quantity requirements in accordance with Section 6.1.9 and SFWMD (South Florida Water Management District) regulations. (8)(7) Said plans may include a plan sheet which includes all proposed improvements on one plan sheet at a scale other than what is required in Section 2.4.3 (B) (1). This additional submittal is in addition to plans submitted meeting the scale requirement in Section 2.4.3 (B) (1). SECTION 2.4.3 (F) (F) Final Engineering Plans: Final Engineering Plans are construction drawings which have been prepared by a Registered Engineer in a manner format acceptable to permitting agencies. (1) Water and sewer plans must be prepared pursuant to requirements of the City Engineering Department and the Department of Health and Rehabilitative Services (HRS). (2) Drainage plans must be prepared pursuant to requirements of the City Engineering Department and the South Florida Water Management District. (3) Street improvement plans must be prepared pursuant to specifications as set forth by the City Engineer for local streets; and, per Palm Beach County or FDOT requirements for streets which are under the jurisdiction of those agencies. (4) Composite utility plans shall show the proposed locations of all existing and proposed utilities (water, sewer, power, telephone, gas, cable, drainage devices) and shall be signed by a representative of each utility provider attesting to the fact that services can be accommodated as shown on the composite utility plan. The composite plan shall address the responsibility for relocation of existing services and installation of new services. SECTION 6.1.9 Section 6.1.9 Drainage Systems (A) The dDrainage and surface water management systems shall be designed and constructed for long life, low maintenance cost and ease of maintenance. (B) An adequate The drainage system shall be designed to include all including necessary open swales ditches, pipes, culverts, intersectional drains, inlets, bridges and the like other system appurtenances required to shall be provided adequate capacity for the proper drainage of all surface storm water for the specified design storm event. Cross drains shall be provided to accommodate all natural water flow and shall be of sufficient length to permit full width roadway and required slopes. (C) Developers of subdivisions whose storm drainage system discharges into the Lake Worth Drainage District shall contract with the Lake Worth Drainage District for maintenance of drainage facilities prior to annexation to the city. (D)(C) Lots shall be laid out configured and graded to provide positive drainage and route runoff away from all existing or proposed buildings. (D) Finished floor elevations shall be a minimum of eighteen inches (18”) above the highest centerline or crown elevation of adjacent roadways or as established by the Federal Emergency Management Agency (FEMA) for flood zone designations where base flood elevations are determined. (E) No net floodplain encroachment above the average wet season water table which will adversely affect the existing rights of others will be permitted. (F) Provision must be made to replace or otherwise mitigate the loss of historic basin storage provided by the project site. (E)(G) The drainage Surface water management systems shall be designed using accepted engineering principles for rainstorms of maximum intensity based on a ten year interval for the South Florida area. in accordance with the requirements of the South Florida Water Management District Basis of Review for Environmental Resource Permits (SFWMD BOR)(latest revision) regardless of development area. The system Systems shall provide for positive drainage of lots, streets, roads, and other public areas. The design shall provide capacity for the maintenance of any and all historical offsite watershed runoff flowing to or through the development site as well as handling any runoff from adjacent areas that naturally flows onto the subject area. Runoff coefficients shall be based on completed projects. At a minimum, The the following standards shall apply to all drainage projects system designs: (1) Storm sewers, culverts and related installations shall be provided. Where necessary, according to the City Engineer: (a) To permit unimpeded flow of natural water courses. SECTION 6.1.9 (b) To insure adequate drainage of all low points. (c) To intercept storm water runoff along streets at intervals reasonably related to the extent and grade of the area drained. (1) Design storm shall be a 10 year return frequency of 24 hour duration. (2) Minimum site retention for water quality: (a) The greater of the first 1” of runoff and 2.5” x % site impervious area for water quality. Sample calculation: First 1” of runoff 1”/12 x site area(sf)=Vol. (cf) 2.5”x % impervious area (2.5”/12)x % imperv area(sf)=Vol. (cf) (3) Minimum site retention for water quantity: (a) The difference between pre-development and post development site runoff for the 10 yr./24 hr. design storm. Runoff shall be calculated using methodology as set forth in the SFWMD BOR considering rainfall distribution to establish peak stage and runoff values over the duration of the design storm. (F) In the design of storm sewerage installations, special consideration shall be given to avoidance of problems which may arise from concentration of storm water runoff over adjacent properties. (G) The subdivider may be required to carry away by pipe or open ditch any spring or surface water that may exist previous to or as a result of the subdivision. Such drainage facilities shall be located in the street right-of-way where feasible, or in perpetual unobstructed easements of appropriate width. (H) A cCulverts or and other drainage facilityies shall, in each case, be large enough have adequate capacity to accommodate potential runoff from it’s the entire upstream drainage area for which they are designed , whether inside or outside the subdivision. The City Engineer shall approve the design and size of the facility based on anticipated runoff from a ten year storm 10 yr./24 hr. design storm under conditions of total potential development permitted by the zoning code in the watershed. (I) The subdivider’s engineer system design shall also study consider the effect impact of such subdivision site development on the capacity of existing downstream drainage facilities outside the area of the subdivision; this study shall be reviewed by the City Engineer. Where it is anticipated calculations as prepared by the development engineer and approved by the City Engineer indicate that the additional of runoff incident to the development of the subdivision to downstream drainage facilities will overload result in the exceedance of the capacity of an existing downstream drainage facility any such facilities during a ten year for the 10 yr./24 hr. design storm, the subdivision shall not be approved until provision has been made for the improvement of the condition. a design for an adequate increase in capacity for the affected facilities has been submitted SECTION 6.1.9 by the development engineer and approved by the City Engineer. The new drainage system will not be approved for connection to the downstream facilities until the capacity improvements are constructed. (J) The owner or responsible entity of any land development or redevelopment that discharges directly or indirectly to a Municipal Separate Storm Sewer System is required to provide for annual inspections, and operation and maintenance of its storm water management system, to ensure that the system functions as designed and permitted. 1 RESOLUTION NO. 17-12 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, WITH RESPECT TO THE RESULTS OF THE REFERENDUM OF THE QUALIFIED ELECTORS OF THE CITY HELD IN THE CITY OF DELRAY BEACH, FLORIDA, ON MARCH 13, 2012, ON THE QUESTION OF AMENDING ARTICLE V, “ELECTIONS”, SECTION 5.02, “TYPES OF ELECTIONS”; TO PROVIDE FOR A CHANGE IN THE LENGTH OF A TERM FROM A TWO YEAR TERM TO A THREE YEAR TERM AND CLARIFYING THE APPLICABILITY OF SUCH CHANGE; CANVASSING THE RETURNS OF SAID REFERENDUM AND DECLARING AND CERTIFYING THE RESULTS THEREOF; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Delray Beach, Florida, (the “Commission”), by Resolution No. 01-12, duly adopted on January 3, 2012 (the “Resolution”) and Ordinance No. 44-11, duly adopted on January 17, 2012 (the “Ordinance”), did propose to amend the Charter of the City to provide: (i) that the ter ms of office for the Mayor and other City Commission Members be extended from two years to thr ee years, said Ordinance and Resolution having further provided and directed that notice of said Referendum is given by publication in accordance with state law, City Charter and City ordinance; and WHEREAS, due and regular notice of said Referendum has been published in the Palm Beach Post and El Latino Semanal Inc. newspapers of general circulation within the City and said publications having been made in English and in Spani sh respectively, each once in the fifth week prior to the week in which the Referendum was held, a t least 30 days prior to March 13, 2012 and in the third week and seven days prior to the date the Ref erendum was held, to wit March 13, 2012; and WHEREAS, the Supervisor of Elections of Palm Beach County has provided the Commission with the results of the Referendum for th e purpose of canvassing the returns and declaring and certifying the results thereof; and WHEREAS, said Referendum has been duly and properly he ld in accordance with law and that a copy of the certificate certifying the resul ts of the Referendum to the Florida Department of State (in substantially the form attached hereto as Exhibit “A”), has been delivered to this Commission for the purpose of declaring and certifying the res ults thereof; and 2 RES. NO. 17-12 WHEREAS, the official returns of said Referendum deli vered to this Commission by the Supervisor of Elections reflect that the total numb ers of votes cast in the Referendum by the qualified electors residing in the City ___DISAPPROVED____ amending the Charter of the City to provide: (i) that the terms of office for the May or and other City Commission Members be extended from two years to three years. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISS ION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1 . That the Commission at this meeting duly held, hav ing received the results from the Supervisor of Elections, hereby canvasses the r eturns of said Referendum and determines, finds, declares and certifies the results thereof with respect to th e Question as follows: QUESTION 1 Charter Revision relating to the length of terms an d term limits for the Commission Members and Mayor Currently, the Commission Members (including the May or) serve two-year terms, limited to three consecutive terms. The Charter Ame ndment proposes three-year terms, limited to three consecutive terms as well as clarifying the applicability of such change as provided in Ordinance No. 44-11. If passed th is amendment shall apply to the Commissioners and Mayor elected in March 2013 and thereafte r. Should the above-described Charter Amendment be adopted? (a) The total number of votes cast in such Refere ndum by said qualified electors residing in the City that voted “For A pproval” was 1,236 . (b) The total number of votes cast in such Refere ndum by said qualified electors residing in the City that vote d “Against Approval” was 2,080. (c) A majority of the votes cast in such Referendu m by such qualified electors in the City _DISAPPROVED___ amending the Charter of the City to provide: (i) that the terms of office for th e Mayor and other City Commission Members be extended from two years to three years. Section 2 . That said Referendum was in all respects conducted in accordance with law, and that all steps in connection with and prece ding such Referendum have been duly, regularly, lawfully taken and that the statutes and constitution of the State of 3 RES. NO. 17-12 Florida, the City Charter and City ordinances have bee n duly complied with in accordance with all their provisions. Section 3 . That a true and correct copy of the certified resul ts shall be filed by the Commission with the Florida Department of Sta te in substantially the form attained hereto as Exhibit “A” (the “Certificate”) a nd that the Commission shall secure an affidavit of publication from the publishers of t he Palm Beach Post, and El Latino Semanal Inc. attesting to the publications of the n otice of the Referendum (the “Affidavit”). Section 4 . That said returns shall be entered and recorded in the minutes of the Commission; and this Resolution, the Affidavit an d Certificate shall be recorded in the minutes of the Commission. Section 5 . All resolutions or parts thereof in conflict or i nconsistent herewith are hereby repealed insofar as any conflict or any inconsiste ncies exists. Section 6 . That this Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED in special session on this 15 th day of March, 2012. CITY OF DELRAY BEACH, FLORIDA ________________________________ M A Y O R ATTEST: ________________________________ City Clerk EXHIBIT “A” CERTIFICATE OF CITY CANVASSING BOARD CITY OF DELRAY BEACH, FLORIDA REFERENDUM MARCH 13, 2012 STATE OF FLORIDA PALM BEACH COUNTY Pursuant to the requirements of Section 100.351 of the Florida Statutes, we, the undersigned, Nelson S. McDuffie, Mayor of the City of Delray Beach, Angeleta E. Gray, Vice- Mayor, Thomas F. Carney, Jr., City Commissioner, Ja y Alperin, City Commissioner, and Adam Frankel, City Commissioner do hereby certify that on the 15 th day of March 2012 A.D., we canvassed the votes as shown by the records on file i n the Office of the Supervisor of Elections. WE do hereby certify from said returns as follows: That for the City of Delray Beach, Florida, Referendu m, the whole number of votes cast was _________ votes of which number the City electors voted in th e following manner in connection with the referendum listed below. QUESTION ONE “For Approval” received _______ Votes “Against Approval” received _______ Votes Witness our hands and seal this the 15 TH day of March, 2012. ________________________________ Nelson S. McDuffie, Mayor ________________________________ Angeleta E. Gray, Vice-Mayor ________________________________ Thomas F. Carney, Jr., City Commissioner ________________________________ Jay Alperin, City Commissioner ________________________________ Adam Frankel, City Commissioner MEMORANDUM TO:Mayor and City Commissioners FROM:Randal L. Krejcarek, PE, LEED AP, GISP, City E ngineer Richard C. Hasko, PE, Environmental Services Direct or THROUGH:David T. Harden, City Manager DATE:March 5, 2012 SUBJECT:AGENDA ITEM SP.2 - SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 RESOLUTION NO. 15 -12/JPA/FDOT/ DOWNTOWN ROUNDABOUT SHUTTLE ITEM BEFORE COMMISSION Request adoption and authorization for the Mayor to execute Resolution No. 15-12 approving a Joint Participation Agreement (JPA) with the Florida Depa rtment of Transportation (FDOT) for 50% reimbursement of operational and capital costs asso ciated with Delray's free shuttle service. Total project cost is estimated at $600,000. Project #12-064. BACKGROUND At the January 17, 2012 Commission meeting approval was sought, and granted, to enter into a JPA with FDOT to fund the City's free shuttle. The Cit y was awarded a 50% matching grant from the FDOT. This grant will fund both operational and ca pital costs of the Delray Beach shuttle for approximately one year. Total cost of the JPA is $600,000, with $400,000 earmarked for operational expenses (drivers and vehicle maintenance) and $200 ,000 earmarked for capital expenses. The capital expenses will be to purchase trolley type vehicles. The Community Redevelopment Agency has committed $300,000 to fund the required match of th is grant. FDOT also requires adoption of the attached resolut ion which was inadvertently not included with the January 17th agenda item. RECOMMENDATION Staff recommends approval. RESOLUTION NO. 15-12 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA APPROVING A JOINT PARTICIPATION AGREEMENT WITH THE STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION TO PROVIDE SERVICE DEVELOPMENT FUNDING TO THE CITY OF DELRAY BEACH TO ENHANCE AND/OR EXPAND THE DOWNTOWN TROLLEY SERVICES LOCATED WITHIN THE CITY OF DELRAY BEACH; PROVIDING FOR CONFLICTS; PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Delray Beach Florida desires to approve the Joint Participation Agreement with the State of Florida De partment of Transportation to provide service development funding to the City of Delray Bea ch to enhance and/or expand the downtown trolley services located within the City of Delray Beach. WHEREAS, the City Commission authorizes the execution o f the Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA: Section 1 . That the recitals set forth are incorporated as if fully set fo rth herein. Section 2. The City Commission of the City of Delray Beach au thorizes the entry in the Joint Participation Agreement, related to Financ ial Project No. 431947-1-84/94-01 , between the City and the Florida Department of Transp ortation and authorizes the execution thereof. PASSED AND ADOPTED in special session on this the ____ day of ______________, 2012. ___________________________________ M A Y O R ATTEST: ________________________ City Clerk MEMORANDUM TO:Mayor and City Commissioners FROM:R. Brian Shutt, City Attorney DATE:March 8, 2012 SUBJECT:AGENDA ITEM SP.3 - SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 SETTLEMENT CONTRIBUTION/PALM BEACH COUNTY/INSPECTOR GENERAL ITEM BEFORE COMMISSION Settlement contribution regarding the lawsuit filed by fifteen municipalities, including the City, aga inst Palm Beach County related to the funding for the In spector General. BACKGROUND In November 2011 the City, along with fourteen othe r municipalities, filed suit against Palm Beach County regarding a ballot question and adoption of an ordinance related to the funding for the Inspect or General. Both sides, through their attorneys, have met several times regarding the lawsuit in an effor t to come to a resolution. At this time it appears that the County Commission will be discussing a possible revision to the ordinance that provides for a diffe rent funding mechanism than what was presented to the municipalities by the County. The revision woul d provide that a charge of .25% will be placed on certain contracts entered into between the City and its vendors where the fee would be paid by the vender. If the ordinance is adopted by the County i t would apply to contracts entered into by the municipalities after the adoption of the ordinance. In furtherance of settlement negotiations it was suggested that the municipalities may want to offer some amount of funding to the County in order to help offset the cost of the IG to date. Although th e City was billed by the County, under the current ordinance, the City has not remitted payment due to the ongoing lawsuit. RECOMMENDATION Commission discretion. MEMORANDUM TO:Mayor and City Commissioners FROM:Vincent Nolan, Economic Development Director Richard J. Reade, Sustainability Officer/PIO THROUGH:David T. Harden, City Manager DATE:March 8, 2012 SUBJECT:AGENDA ITEM WS.1 - SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 CONGRESS AVENUE CORRIDOR STRATEGIC MARKETING PLAN & CITYWIDE ECONOMIC DEVELOPMENT INCENTIVES ITEM BEFORE COMMISSION David J. Wilk, from Sperry Van Ness, and City staff will provide the City Commission with a presentation and recommendations for creating a Con gress Avenue Corridor Strategic Marketing Plan & Citywide economic development incentives to promote growth within the City. BACKGROUND David J. Wilk, National Director of Corporate Real Estate and Advisory Services for Sperry Van Ness Commercial Real Estate Advisors and Corporate Valua tion Advisors, will provide the City Commission with a report on the development of a Congress Aven ue Corridor Strategic Marketing Plan. Following Mr. Wilk’s presentation, Vin Nolan, Economic Development Dir ector, and Rich Reade, Sustainability Officer/PIO, will provide the City Commission with a presentation and recommendations on proposed Citywide economic development incentives to be util ized to spur development activity along Congress Avenue and throughout the City of Delray Beach. Mr. Wilk was hired by the City in December 2011 to develop an economic development strategy for the Congress Avenue Corridor through repositioning key properties and marketing/branding strategies that optimize challenging real estate assets within this area of the City, in particular the former Office Depot property. Further, Mr. Wilk will provide the City with the types of industries and businesses that wo uld most likely fit within the Congress Corridor, inclu ding the former Office Depot property, and will recommend a marketing/branding plan to attract thes e companies to our community. In an effort to position Congress Avenue and the Ci ty of Delray Beach as an attractive location for ne w and/or expanding businesses, it is important to ide ntify and develop incentive opportunities (i.e., financial and non-financial) that can be utilized in partnership with the Marketing Plan that is being developed by Mr. Wilk. As a result, staff will pre sent information on the types of incentives that ar e offered by other local and state communities that a re considered to be aggressive in targeting economi c development opportunities. Further, a comprehensiv e incentive program will be recommended for implementation. **Please note that both presentations will be provi ded to the City Commission prior to the Workshop meeting. CREATING A STRATEGIC MARKETING PLAN CONGRESS AVENUE CORRIDOR Delray Beach, FL March, 2012 Scope and Objectives – Mission Statement Current Situation Analysis Activities to Date and In Process Initial Focus Areas Market Observations SWOT Analysis – Delray Beach and Congress Avenue Initial Branding Direction Corridor Maps & Conceptual Plans Critical Ingredients for Success Implementation Framework and Phasing Funding Recommendations Next Steps CONTENTS Create a strategic marketing and branding plan that brings new economic development, jobs, and demand for real estate along Congress Avenue in Delray Beach . A real estate branding strategy that repositions key underutilized properties along Congress Avenue will transform this Corridor into a catalyst for new private investment . SCOPE & OBJECTIVES – MISSION STATEMENT The Congress Avenue Corridor in Delray Beach, although right off I -95, is currently comprised of multiple vacant parcels, vacant offices, and a disjointed mix of uses. The office real estate segment in the Corridor has not been strong for years because of currentAaesthetics,AaAlackAofA“senseAofAplace”,AandAlacklusterAmarketAconditions. TheA550KASFAvacant,AformerAOfficeADepotApropertyA(“IW ”)AisAaAmajorA“eyesore”AandAstandsA in the way of the Corridor realizing its upside potential. IWA, the Arbors and Levenger complexes represent about 80 % of the Delray office market with vacancy rates of between 60% and 100%. There are limited services for office users in this corridor, such as restaurants, coffee shops, retail, or other offerings. The Corridor contains various aesthetically challenged non -office properties presenting challenges in attracting office users, especially compared to Boca. New businesses interested in locating in southern Palm Beach County are not currently being brought to the Corridor due to a lack of financial incentives and desirability. CURRENT SITUATION – CONGRESS CORRIDOR IN DELRAY Market reconnaissance on vacant and available properties in Delray and Boca, including the most recent transactions along Congress. Meetings with property owners, businesses, brokers, BDB, and other key stakeholders to gain insights and invite them into our strategic marketing process. Gained market perspectives on supply & demand for commercial, industrial, healthcare, lifestyle, institutional, and residential uses. Developed a SWOT analysis with recommendations on the best targeted uses for redeveloping Congress Avenue and IWA. Made general recommendations to City Staff to build an economic development and incentive package to facilitate bringing new deals to Delray Beach. Formulating a new brand and market identity that will rejuvenate Congress Avenue in Delray Beach. Working to transform the IWA property into a demand generator for new office users and a new hub of innovation and lifestyle connected uses for the community. ACTIVITIES TO DATE AND IN PROCESS Existing Conditions along the Congress Avenue Corridor WhatArealisticAoptionsAexistAinADelray’sAmarketAtoAtransformACongressA ve.ACorridor? How critical is the redevelopment of the IWA site in reinventing the Corridor and bringing new businesses to Delray? How can aesthetics along Congress be improved to elevate the feel of the area. Market Observations and Unlocking Future Corridor Potential What types of retail, office, lifestyle, educational, medical, and other uses would work along the Congress Avenue Corridor between Boca and Atlantic Ave? What branding strategy for Congress Avenue Corridor in Delray will capture market attention and generate short -term and permanent demand? Community Participation and Teaming Success What processes and tools are critical to building a new market identity for Congress Avenue Corridor in Delray with BDB, Enterprise Florida, and potential users? Infrastructure and Funding Needs CRA District, Special Development District, Enterprise Zone, & Foreign Trade Zone Designations. Economic Development & Incentives to support recruitment, retention, & expansion, and encourage private investment. INITIAL FOCUS AREAS The south Florida office market is still trying to recover from the last few years of downturn and although trends are turning positive, the pace of recovery will be gradual. The Boca/Delray Beach office market comprises 12,825,000 SF and currently has a vacancy rate of about 30%, and negative, net absorption of (309,000) SF for 2011. The Delray Beach office market comprises 1,442,000 SF and has a current direct vacancy rate of 56.6%. The IWA property represents 550K SF or 38 % of the total space. With an overall vacancy rate for Delray of over 50%, it could take five to ten years to absorb this space if left to market forces. TheA rbor’sAnewAownershipAisAaAgreatAadditionAtoADelray,A and should add new energy to the market along Congress Avenue although their 250,000 SF is almost 20% of the Delray market. There is current demand for office in downtown Delray, but there are no large blocks of space available, so repositioning Congress as a new destination connected to downtown is possible. ChallengesAforACongressA venueAincludeAtheA“whiteAelephant”AIW Asite,AlimitedAappealAofADelrayAforA office users, and the need for more than just Class A office in the future to reach the next level. The key to capturing new demand along Congress Avenue in Delray is to create a new mix of uses that are branded and presented in a way that will lead to a visible market reaction. MARKET OBSERVATIONS – OFFICE POTENTIAL Given the current glut of office space in Boca and Delray, and the projected pace of absorption, relying on the office sector alone to elevate Congress Ave going forward is not justifiable. Other market segments are necessary to take Congress to the next level, including retail , institutional, healthcare, educational, multi -family, and restaurants/hospitality. Green technology, sustainable and solar powered redevelopment can also be strong market differentiatorsAforAtheACorridorAtoAhelpA“breakAout”AofAtheAcurrentAdoldrums. Delray’sAconnectionAwithABocaAatAtheAsouthernAborderAalongACongressAcanAbeAleveragedAtoA generate more potential demand for both cities from I -95. The first steps in the rejuvenation of the Corridor should include repositioning the IWA property into a sustainable mixed -use development, along with some key commercial parcels along the Boca, Delray border. In conjunction with the potential new mix of uses coming into the Corridor, the overall aesthetics of Congress Avenue need to elevated. Given the possibility of budget cuts, current market conditions, and a slow economic recovery, reinventing the Corridor will not be easy, but a strong new strategy and branding will work. MARKET OBSERVATIONS – CONGRESS CORRIDOR SWOT ANALYSIS – CONGRESS AVE. CORRIDOR - DELRAY Strengths Weaknesses Opportunities Threats • Connecting to downtown Delray’s success in a way that attracts new businesses to Congress • Strategic alliance with Boca for branding and demand uplift based on shared borders • Continuing the MedUTech concept north of Boca along Congress into Delray • Development of vacant commercial land now available right off I -95 on Congress • Working with Delray Medical Center and FAU to attract new healthcare users to Congress Ave • IWA continues to stay dormant and de - stabilizes the absorption of existing office space • Numerous vacant land parcels available for sale with limited buyers and feasibility for years • Boca and Palm Beaches markets have millions of SF of vacant space that competes with Delray • Public schools are not well perceived and present challenges for attracting new residents • Congress Avenue in Delray is left to market forces and remains “stuck” with no clear vision •Excellent access to I -95, ports, rail, airports, universities, and hospitals •Real estate prices are generally lower than Boca and Palm Beach • Delray Beach has a track record of success in redevelopment •MROC zoning is perfect for the uses necessary to redevelop land on Congress and good utilities •Boca leadership and BDB are ready to support a new Congress Ave strategy • Vacancy and status of IWA and lack of any market energy or excitement • Certain properties diminish the potential uplift of the Corridor •Lack of nearby food and retail services for office occupancy • No competitive package of incentives and/or funding for users •No “sense of place” along Congress Avenue that would help to draw new business “DelrayAInnovationACorridor” Technology,AResearch,AEducation,A spiration,ATalentA(“TRE T”)AA Corporate Headquarters and Regional Offices Tourist and Destination Demand From I -95 New Food, Lifestyle, Retail & Leisure U ses Solar -Power & Green Technology P owering the N ew M ix of Uses INITIAL BRANDING DIRECTION RepositionAtheAIW ApropertyAintoAtheA“DelrayAInnovationA Park”. Main Street Entrance with Specialty Retail Uses/Restaurants Corporate/Regional Headquarters Office (Germantown Bldg.?) Technology/Educational Campuses - Adult, STEM, and Children Multi -Family Units - FAU Med, Young F amilies & Professionals Park and Open Space for Community Use (Gazebo, Concerts) Model of Sustainability and Innovative Land Uses INITIAL BRANDING DIRECTION “DELRAY INNOVATION CORRIDOR” – I -95 TO ATLANTIC “DELRAY INNOVATION CORRIDOR” – I -95 TO LINTON CONCEPTUAL PLANS – “DELRAY INNOVATION PARK” Scenario 1 Scenario 2 TheA“Delray Innovation Corridor”A needs a competitive financial incentive and economic development package for BDB. Aesthetic improvements, infrastructure, CRA District, FTZ formation, and accelerated entitlements for new users. IWA owners working with the City on the new strategic marketing and branding planAforAredevelopingAtheirApropertyAintoAtheA“DelrayAInnovationAPark”.  A“green”AtrolleyAlinkAand/orAtransitAconnectionAbetweenACongress,AtheArailA stations, and Downtown Delray to shuttle people between the destinations. CreatingAaA“PR”AstoryAandAbranding/marketingAcollateralsAaboutAtheA transformationAofAIW ApropertyAintoA“DelrayAInnovationAPark”. Partnering with Boca and Boynton along the Congress Avenue corridor to accelerateAeveryone’sAsuccess. CRITICAL INGREDIENTS FOR SUCCESS Form Public/Private Partnership with City as Lead Gain control of the IWA site or execute a development agreement with current owners and/or new developers. Develop and entitle a new master plan for the IWA property under MROC code. Target Users for Various Economic Units – South to North Parcels along Boca/Delray border - restaurant/hospitality cluster right off I -95. Corporate office on 7.99 acres cadi -corner to IWA. Corporate Headquarters site on IWA property as part of mixed -uses. Innovation Park at IWA (powered by a solar farm) Science and technology innovation Medical & Healthcare Community college, or University consortium Multi -Family Units – Part of IWA Village Plan and geared to FAU Med. Cultural and Recreational – Open Public Space and Walking Trails. Landscape Buffers along industrial f rontage and other key stretches on Congress. Build initial momentum by repositioning IWA and southern I -95 parcels IMPLEMENTATION FRAMEWORK & PHASING Aesthetics and Infrastructure – Public Improvements Design a landscaping and beautification plan for the Corridor. CreateAlandscapeAbuffersAforAindustrialAandA“tired”AresidentialAareas. T ransform the Corridor with great aesthetics & lifestyle connectivity. Types of Non -Traditional Funding TIF District, FTZ, Enterprise Zone Designations Solar F arm and other green technologies to generate special tax credits Create a Corporate Headquarters Strategic Fund PioneerAanA“InnovationAandATechnologyACompanyADevelopmentA ct”AforAFL Science and Technology Innovation tax credits Medical & Healthcare research & development credits Educational and IT Vocational Degree Programs with Training Credits for Companies USDA Funding for Agri -Technology, Logistics, and Innovation Companies EB -5 Regional Center Funding – Foreign Direct Investment Capital FUNDING RECOMMENDATIONS Refine and polish the conceptual corridor plan and branding collaterals that captureAtheAnewAmixAofAusesAcomprisingAtheA“DelrayAInnovationACorridor”. Finalize the economic development incentive package and branding refinements to make theA“DelrayAInnovationACorridor”A credible. Present the strategy and new brand to the City Commission, BDB, Chamber of Commerce, and key stakeholders to build excitement and support for the concept. Fast -track the process for the IWA property redevelopment to be entitled for new uses and becomeAtheA“DelrayAInnovationAPark”. Facilitate new deals in process along the Delray/Boca border up to Linton with local brokers to build immediate momentum and stimulate more demand. Finalize the market awareness package for BDB including the Economic DevelopmentAandAFinancialAIncentivesAPlanAforAtheA“DelrayAInnovationACorridor”. NEXT STEPS QUALIFICATIONS – DAVID J. WILK, CRE, MAI Mr . Wilk is National Director of Corporate Real Estate and Advisory Services for Sperry Van Ness (“SVN”) and Corporate Valuation Advisors (“CVA”). David creates value in today’s market for corporations, private equity firms, developers/investors, and institutions (universities, hospitals, governmental entities) by focusing on real estate strategies that generate new earnings, cost savings and bottom line impact . Within these types of value propositions, Mr . Wilk also provides valuations and market studies, economic development strategies for municipalities through repositioning key properties, and marketing/branding strategies that optimize challenging real estate assets . Mr . Wilk was formerly National Managing Director of Duff & Phelps Corporate Real Estate Advisory Group from 2008 through 2009 after they acquired Greystone Realty Advisors, a boutique advisory firm he founded in 1997 . From 1995 to 1997 Mr . Wilk was Regional Director of Corporate Real Estate Services for Ernst & Young LLP in the Middle Atlantic . From 1993 to 1995 , Mr . Wilk was Managing Director of the Real Estate Valuation Group for Arthur Andersen in Philadelphia after Andersen acquired Wilk & Associates, Inc ., a real estate consulting company founded in 1987 . From 1977 to 1987 , Mr . Wilk held senior management positions with Valuation Research Corporation, Arthur D . Little, and was National Director of Valuation Services for Kenneth Leventhal & Co in California . Mr . Wilk is an Adjunct Professor and Co -Founder of the Real Estate program at the University of Delaware Lerner Business School . Courses taught since 1988 include Real Estate Finance (FINC 417 ), Real Estate Development & Investment (FINC 467 ), and MBA Real Estate Finance (FINC 854 ). He earned a Bachelor’s Degree in Finance from the University of Delaware and is completing a sequenced Masters and Doctoral Program in Corporate Real Estate Studies through Johns Hopkins University . Mr . Wilk is a Counselor of Real Estate (CRE) and a Member of the Appraisal Institute (MAI) since 1985 . He is a Licensed Real Estate Broker and Certified General Appraiser in the State of Delaware . He has also qualified as an expert witness in numerous State and Federal court jurisdictions on a national level . Mr . Wilk has 35 years of real estate experience on commercial, industrial, residential, agricultural, governmental, and institutional real estate projects including having worked in 48 states in the U .S ., Canada, Mexico, Europe, South America, the Caribbean, Asia, and the South Pacific . Fortune 500 clients served have included ; Johnson & Johnson, Chevron, GE, Berkshire Hathaway, Agilent Technologies, MBNA America Bank, Hercules (Ashland), DuPont, Comcast, AT&T, Exelon Energy, Bristol Myers Squibb, PNC Financial, Bank of America, AstraZeneca, Sun Company, and J .P . Morgan Chase . Real estate consulting highlights from Mr . Wilk’s career include ; Pebble Beach, Aspen Ski Resorts, 20 th Century Fox Film Studios, Irvine Ranch, Madison Square Garden, Santa Anita Racetrack, Dover Downs, Elvis Presley Enterprises, Hyatt Regency & Four Seasons Resorts in Hawaii, Chevron’s Huntington Beach Company, Marriott’s Great America Theme Parks, Power Plant in Baltimore, Art Deco Hotels in South Beach, Pennsylvania Convention Center and Philadelphia Marriott Hotel, Comcast Cable Systems, Bikini Atoll in Micronesia (South Pacific) and Fort DeRussy in Waikiki, Hawaii . Ci t y o f D e l r a y B e a c h Ci t y w i d e E c o n o m i c D e v e l o p m e n t In c e n t i v e s R e c o m m e n d a t i o n s Pr e s e n t a t i o n b y Vi n c e n t N o l a n , E c o n o m i c D e v e l o p m e n t D i r e c t o r Ri c h a r d J . R e a d e , S u s t a i n a b i l i t y O f f i c e r / P u b l i c I n f o r m a t i o n O f f i c e r Ma r c h 1 5 , 2 0 1 2 Ov e r v i e w Ex i s t i n g E c o n o m i c C o n d i t i o n s Co n g r e s s A v e n u e C o r r i d o r S t a t i s t i c s – A s s e s s e d v a l u a t i o n s h a v e d e c r e a s e d m o r e t h a n $ 1 0 6 m i l l i o n o v e r pa s t 5 y e a r s : – N o s u b s t a n t i a l c o r p o r a t e d e v e l o p m e n t o v e r p a s t 3 t o 5 y e a r s – A l t a C o n g r e s s R e s i d e n t i a l P r o j e c t ~ o n l y r e c e n t m a j o r d e v e l o p m e n t • 3 6 9 a p a r t m e n t s ( i n c l u d i n g 7 4 w o r k f o r c e u n i t s ) u n d e r c o n s t r u c t i o n • I n c l u d e d w i t h i n t h e C o n g r e s s P a r k O f f i c e P a r k • C l o s e p r o x i m i t y t o T r i - R a i l S t a t i o n CO N G R E S S  AV E N U E                                                AS S E S S E D  VA L U E  ‐ 20 0 6 CO N G R E S S  AV E N U E                          AS S E S S E D  VA L U E  ‐2011 $3 7 6 , 7 7 0 , 5 2 2 $ 2 6 9 , 8 9 2 , 6 3 0 Ov e r v i e w Ex i s t i n g E c o n o m i c C o n d i t i o n s CR A E c o n o m i c D e v e l o p m e n t I n c e n t i v e s (A v a i l a b l e o n l y w i t h i n C R A D i s t r i c t ) – 6 n e w i n c e n t i v e p r o g r a m s e s t a b l i s h e d i n 2 0 1 0 & 2 0 1 1 – $ 2 m i l l i o n a l l o c a t e d t o w a r d s e c o n o m i c d e v e l o p m e n t p r o j e c t s – N e a r l y $ 1 m i l l i o n i n i n c e n t i v e s a w a r d e d : • L a r g e P r o j e c t s : Ap p r o v e d - 2 n e w h o t e l s & r e l o c a t e d l a w o f f i c e Pl a n n e d - s e v e r a l o f f i c e b u i l d i n g s & 3 rd ho t e l •S m a l l P r o j e c t s : Ap p r o v e d - v a r i o u s p r o p e r t y r e n o v a t i o n s a s w e l l a s ne w & e x p a n d i n g e m p l o y e r s – 1 7 5 n e w j o b s c r e a t e d (p r o j e c t e d ) – O v e r $ 2 0 m i l l i o n i n n e w a s s e s s e d v a l u a t i o n s (p r o j e c t e d ) Ov e r v i e w Ex i s t i n g E c o n o m i c C o n d i t i o n s Op e r a t i n g W i t h o u t C i t y w i d e E c o n o m i c D e v e l o p m e n t P r o g r a m – P r o m o t e j o b c r e a t i o n – P r e s e r v e e x i s t i n g j o b s – I n c r e a s e p r o p e r t y v a l u a t i o n ~ l o n g t e r m , t a x b a s e – I m p r o v e b u s i n e s s i m a g e a n d v i s i b i l i t y o f D e l r a y B e a c h Ne e d D i r e c t i o n o n E c o n o m i c D e v e l o p m e n t A c t i v i t i e s t o T a r g e t – R e c r u i t m e n t & R e l o c a t i o n ~ n e w b u s i n e s s e s t o D e l r a y B e a c h – R e t e n t i o n ~ k e e p i n g o u r l o n g - s t a n d i n g c o m p a n i e s f r o m l o o k i n g e l s e w h e r e – E x p a n s i o n ~ a s s i s t i n g b u s i n e s s e s w i t h g r o w t h & m a r k e t e x p a n s i o n – S u p p o r t S t a r t - U p & S e c o n d - S t a g e C o m p a n i e s ~ h i g h e r r i s k / r e w a r d – R e n o v a t i o n & R e d e v e l o p m e n t ~ i m p r o v e a e s t h e t i c a p p e a l o f C i t y b u s i n e s s di s t r i c t s St a t e & C o u n t y F i n a n c i a l I n c e n t i v e s – L i m i t e d a v a i l a b i l i t y d u e t o l a c k o f f u n d s t o s u p p o r t r e q u i r e d l o c a l m a t c h – N o t f u l l y u t i l i z i n g a v a i l a b l e s t a t e & c o u n t y i n c e n t i v e s ( i . e . , S t a t e U r b a n J o b Ta x C r e d i t P r o g r a m ) Ov e r v i e w Ex i s t i n g E c o n o m i c C o n d i t i o n s Ur b a n J o b T a x C r e d i t P r o g r a m – U p t o $ 1 , 5 0 0 i n s t a t e f u n d i n g p e r j o b c r e a t e d w i t h i n t a r g e t e d a r e a s an d f o r s p e c i f i c i n d u s t r i e s ( o t h e r q u a l i f i c a t i o n s a l s o a p p l y ) Ec o n o m i c D e v e l o p m e n t P r o g r a m s Re v i e w o f O t h e r C o m m u n i t i e s – D e l r a y B e a c h i s n o t j u s t c o m p e t i n g w i t h n e i g h b o r i n g mu n i c i p a l i t i e s a n d s u r r o u n d i n g c o u n t i e s , w e a r e u p a g a i n s t o t h e r pa r t s o f t h e s t a t e a n d t h e c o u n t r y i n t r y i n g t o a t t r a c t / r e t a i n t a r g e t in d u s t r i e s a n d b u s i n e s s e s . – W e r e v i e w e d ( a n d s h o u l d c o n t i n u o u s l y r e v i e w ) w h a t o t h e r su c c e s s f u l c o m m u n i t i e s a r e o f f e r i n g t o a t t r a c t / r e t a i n t h e i r t a r g e t s (i . e . , j o b s , b u s i n e s s e s , e t c . ) – C o n v e r s a t i o n s & m e e t i n g s w i t h m u n i c i p a l i t i e s c o n s i d e r e d t o b e ag g r e s s i v e i n t a r g e t i n g e c o n o m i c d e v e l o p m e n t o p p o r t u n i t i e s . So m e o f t h e “ b e s t p r a c t i c e s ” d i s c o v e r e d i n c l u d e : Ec o n o m i c D e v e l o p m e n t P r o g r a m s Re v i e w o f O t h e r C o m m u n i t i e s Ci t y o f P a l m B e a c h G a r d e n s , F l o r i d a – C o r p o r a t e t e a m a p p r o a c h u t i l i z i n g k e y d e v e l o p m e n t s t a f f & C i t y l e a d e r s h i p – D e d i c a t e d r e s e r v e a l l o c a t e d ( $ 1 M i l l i o n ) - “ J o b F u n d ” - t o m e e t f i n a n c i a l in c e n t i v e n e e d s – F l e x i b l e g r a n t & l o a n p r o g r a m s – D e d i c a t e d f u n d i n g t o s u p p o r t m a r k e t i n g a n d p r o m o t i o n a l m a t e r i a l s Ci t y o f B o c a R a t o n , F l o r i d a – O f f e r w i d e - r a n g i n g i n c e n t i v e p r o g r a m s – U t i l i z e u n r e s t r i c t e d r e s e r v e f u n d i ng ( n o t a d e d i c a t e d a m o u n t ) t o m e e t fi n a n c i a l i n c e n t i v e n e e d s • S i n c e 2 0 1 0 - $ 6 8 0 , 0 0 0 c o m m i t t e d o v e r a d e f i n e d p e r i o d o f t i m e t o 1 2 co m p a n i e s t h a t c r e a t e d / r e t a i n e d a p p r o x . 3 , 4 0 0 j o b s ( a v g . $ 2 0 0 p e r j o b i n Ci t y i n c e n t i v e f u n d i n g ) • S i n c e 2 0 1 0 – C i t y I n c e n t i v e s c o m m i t t e d w e r e l e v e r a g e d t o b r i n g i n $ 2 . 9 mi l l i o n i n s t a t e e c o n o m i c f u n d i n g a n d $ 4 4 0 , 0 0 0 f r o m P a l m B e a c h C o u n t y (a v g . $ 9 8 2 p e r j o b i n s t a t e a n d / o r c o u n t y f u n d i n g ) Ec o n o m i c D e v e l o p m e n t P r o g r a m s Re v i e w o f O t h e r C o m m u n i t i e s Ci t y o f N o r t h P o r t , F l o r i d a – 2 5 m e m b e r E c o n o m i c D e v e l o p m e n t A d v i s o r y B o a r d – D e d i c a t e d r e s e r v e ( $ 3 M i l l i o n ) a l l o c a t e d t o m e e t f i n a n c i a l i n c e n t i v e n e e d s – R e c u r r i n g a n n u a l b u d g e t ( $ 4 9 5 , 0 0 0 ) a l l o c a t i o n t o s u p p o r t s t a f f , m a r k e t i n g & fi n a n c i a l i n c e n t i v e s • $ 1 0 0 , 0 0 0 i s d e d i c a t e d t o e c o n o m i c d e v e l o p m e n t m a r k e t i n g / p r o m o t i o n • M u l t i p l e e c o n o m i c d e v e l o p m e n t st a f f m e m b e r s Ci t y o f B o u l d e r , C o l o r a d o – F l e x i b l e r e b a t e p r o g r a m ( R e b a t e C i t y d e v e l o p m e n t f e e s ) – M i c r o - l e n d i n g p r o g r a m Ci t y o f S u n r i s e , F l o r i d a – D i r e c t f i n a n c i a l i n c e n t i v e g r a n t p r o g r a m s t o f u l f i l l s t a t e & c o u n t y m a t c h re q u i r e m e n t s ~ r a n g i n g f r o m $ 5 0 , 0 0 0 t o $ 1 m i l l i o n Ci t y o f W e l l i n g t o n , F l o r i d a – S t r e a m l i n e d ( e x p e d i t e d ) p e r m i t t i n g – D e v e l o p m e n t i n c e n t i v e s ( i . e . , i n c r e a s e d d e n s i t y ) Ec o n o m i c D e v e l o p m e n t P r o g r a m s Re v i e w o f O t h e r C o m m u n i t i e s Ot h e r E c o n o m i c D e v e l o p m e n t T o o l s U s e d B y M u n i c i p a l i t i e s – L a n d d o n a t i o n f o r s p e c i f i c t y p e s o f u s e – A d - V a l o r e m ( p r o p e r t y ) t a x e x e m p t i o n s / r e b a t e s – W a i v i n g o f v a r i o u s C i t y f e e s – E n t e r p r i s e z o n e s – A m e n d C o m p r e h e n s i v e P l a n & Z o n i n g C o d e Ci t y w i d e E c o n o m i c D e v e l o p m e n t Go a l s & S t r a t e g i e s Go a l s – C o n t i n u e t o i m p r o v e t h e p e r c e p t i o n t h a t D e l r a y B e a c h i s b u s i n e s s fr i e n d l y a n d a v i a b l e c o r p o r a t e d e s t i n a t i o n – “ L e v e l t h e p l a y i n g f i e l d ” b y m a t c h i n g e c o n o m i c d e v e l o p m e n t t o o l s of f e r e d b y l o c a l l y & r e g i o n a l l y c o m p e t i t i v e c o m m u n i t i e s – G r o w s u s t a i n a b l e & l i v a b l e w a g e j o b s – E n c o u r a g e n e w & r e t a i n e x i s t i n g e n t r e p r e n e u r s ( i . e . , s t a r t - u p s ) – I n c r e a s e D e l r a y B e a c h t a x b a s e Ci t y w i d e E c o n o m i c D e v e l o p m e n t Go a l s & S t r a t e g i e s St r a t e g i e s : N o n - F i s c a l – O n g o i n g r e v i e w o f o v e r a l l d e v e l o p m e n t & p e r m i t t i n g p r o c e s s e s ( i . e . , MR O C z o n i n g & e x p e d i t e d p e r m i t t i n g ) – C r e a t e ne w De l r a y B e a c h E c o n o m i c D e v e l o p m e n t A c t i o n T e a m t o w o r k wi t h c o r p o r a t e p r o s p e c t s – C r e a t e ne w bu s i n e s s v i s i t a t i o n p r o g r a m f o r e f f e c t i v e r e t e n t i o n / e x p a n s i o n of l o c a l b u s i n e s s e s – C o n t i n u o u s i m p r o v e m e n t o f ww w . B u s i n e s s D e l r a y . o r g we b s i t e a n d o t h e r re l a t e d w e b s i t e s i n D e l r a y B e a c h ( C i t y / C h a m b e r / C R A / D D A ) f o r co n s i s t e n t m e s s a g i n g – C o n s t r u c t i v e & c o n t i n u e d e n g a g e m e n t w i t h s t r a t e g i c p a r t n e r s • E n t e r p r i s e F l o r i d a & F l o r i d a O f f i c e o f E c o n o m i c O p p o r t u n i t y • B u s i n e s s D e v e l o p m e n t B o a r d ( B D B ) , P a l m B e a c h C o u n t y E c o n o m i c De v e l o p m e n t O f f i c e & E c o n o m i c C o u n c i l o f P a l m B e a c h C o u n t y • D e l r a y B e a c h C R A , D D A , D B M C & C h a m b e r o f C o m m e r c e • S o u t h C o u n t y n e i g h b o r i n g m u n i c i p a li t i e s Ci t y w i d e E c o n o m i c D e v e l o p m e n t Go a l s & S t r a t e g i e s St r a t e g i e s - F i s c a l – I m p l e m e n t e c o n o m i c d e v e l o p m e n t f i n a n c i a l i n c e n t i v e s – S t e p - u p b r a n d i n g & m a r k e t i n g / p r o m o t i o n a c t i v i t y – C r e a t e s u s t a i n a b l e e c o n o m i c d e v e l o p m e n t s y s t e m s • C r e a t e C R A D i s t r i c t a l o n g t h e C o n g r e s s A v e n u e C o r r i d o r t o i m p r o v e th e a e s t h e t i c s a n d i n f r a s t r u c t u r e n e c e s s a r y f o r a t r u e c o r p o r a t e en v i r o n m e n t , s u p p o r t f i n a n c i a l i n c e n t i v e s a n d t o f u n d ma r k e t i n g / p r o m o t i o n e f f o r t s • C o l l a b o r a t e w i t h s t a t e l e g i s l a t i v e d e l e g a t i o n t o c r e a t e a n E n t e r p r i s e Zo n e t o s u p p o r t t h e D e l r a y I n n o v a t i o n C o r r i d o r Re c o m m e n d a t i o n s 1 . Ad o p t C i t y R e s o l u t i o n t o p r o v i d e l o c a l m a t c h f o r s t a t e an d c o u n t y i n c e n t i v e p r o g r a m s : • Q u a l i f i e d T a r g e t I n d u s t r y R e f u n d P r o g r a m ( Q T I ) • G o v e r n o r ’ s Q u i c k A c t i o n C l o s i n g F u n d • E c o n o m i c D e v e l o p m e n t T r a n s p o r t a t i o n F u n d R o a d F u n d 2. Co m m i t C i t y ’ s u n r e s t r i c t e d r e s e r v e f u n d s ( $ 1 t o $ 2 mi l l i o n ) t o s u p p o r t C i t y i n c e n t i v e s & l o c a l m a t c h f o r co u n t y a n d s t a t e i n c e n t i v e s 3. Es t a b l i s h a n n u a l b u d g e t a l l o c a t i o n f o r e c o n o m i c de v e l o p m e n t a c t i v i t i e s : • G r a n t s & i n c e n t i v e s – s m a l l e r p r o j e c t s • C i t y w i d e b r a n d i n g • C i t y w i d e m a r k e t i n g / p r o m o t i o n Re c o m m e n d a t i o n s 4. De v e l o p g r a n t / l o a n i n c e n t i v e p r o g r a m s t o e n c o u r a g e go o d e c o n o m i c d e v e l o p m e n t . P r o g r a m e x a m p l e s m a y in c l u d e : • J o b G r o w t h ( b u s i n e s s d e v e l o p m e n t ) i n c e n t i v e g r a n t s / l o a n s • E x t r a o r d i n a r y O p p o r t u n i t y / A l t e r n a t i v e i n c e n t i v e p r o g r a m • A d - V a l o r e m ( p r o p e r t y ) T a x E x e m p t i o n s a n d r e b a t e s • E c o n o m i c g a r d e n i n g ( t e c h n i c a l a s s i s t a n c e ) g r a n t s • W o r k f o r c e D e v e l o p m e n t A s s i s t a n c e a n d T r a i n i n g g r a n t s • G r e e n g r a n t s / l o a n s ( P A C E – P r o p e r t y A s s e s s e d C l e a n En e r g y P r o g r a m ) • R e n t S u b s i d i e s 5. Re q u e s t s t a t e l e g i s l a t i v e d e l e g a t i o n t o s u p p o r t C i t y ’ s ef f o r t t o e s t a b l i s h E n t e r p r i s e Z o n e f o r C o n g r e s s A v e n u e ar e a 6. Au t h o r i z e d e v e l o p m e n t o f C R A d i s t r i c t a l o n g C o n g r e s s Av e n u e t o s u p p o r t t h e “ D e l r a y I n n o v a t i o n C o r r i d o r ” Ci t y w i d e E c o n o m i c D e v e l o p m e n t I n c e n t i v e s Re c o m m e n d a t i o n s MEMORANDUM TO:Mayor and City Commissioners FROM:David T. Harden, City Manager DATE:March 7, 2012 SUBJECT:AGENDA ITEM WS.2 - SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 DISCUSSION OF POSSIBLE CHARTER REVIEW COMMITTEE ITEM BEFORE COMMISSION The item before Commission is a discussion regardin g a possible charter review committee. BACKGROUND The possibility of conducting a charter review has been raised by the Commission. The last charter review was in 2001. This item is on the agenda for discussion by the Commission. Two questions need to be addressed: (1) Should the City have a Charter Review Committee to review the City Charter at thi s time? (2) If the answer to the first question is y es, then should the Committee be given direction to review certain sections of the Charter, or should t hey be asked to review the entire charter? The previous committee appointed in 2001 (which was named the "Charter Revision Committee") consisted of eleven members appointed by the Mayor and Commissioners. Each member of the Commission nominated five individuals for apointmen t to the Committee (except the Mayor actually only nominated three) and then each Commissioner ap pointed two (2) members. In addition the Mayor also appointed an additional member to serve as the Chairperson. Each appointment was approved by the full Commission. If the Commission decides to set up a Charter Revie w Committee, then the size of the Committee and how its members are to be selected should also be d iscussed. Do Commissioners wish to recruit members to appoint to the Committee, or do you wish to solicit applications and appoint members in the same manner as other boards? MEMORANDUM TO:Mayor and City Commissioners FROM:Robert A. Barcinski, Assistant City Manager THROUGH:David T. Harden, City Manager DATE:March 8, 2012 SUBJECT:AGENDA ITEM WS.3 - SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 DISCUSS CHANGES TO SPECIAL EVENT POLICIES AND PROCE DURES ITEM BEFORE COMMISSION Commission is requested to discuss possible changes to the Special Event Policies and Procedures and to provide direction to staff. BACKGROUND Over the last couple of months, Commissioners have discussed and proposed possible changes to the Special Event Policies and Procedures to increase r evenues and recoup costs and to possibly limit the number of events. Based on these discussions, staff is proposing options for Commission’s consideration to meet these goals. Attached as back up information are: (1) a copy of the Special Even t Policies and Procedures, (last changes were made Ap ril 29, 2011); (2) a spreadsheet listing events and costs for FY10-11; (3) a spreadsheet listing events and costs star ting October 1, 2011 through February 29, 2012; (4) a list of events from March 1, 2012 t hrough September 30, 2012 with last year’s costs; and (5) Old School Square grounds/Park rentals. I will try to get this information in calendar format prio r to the workshop meeting. Options for consideration: 1.Increase the charge for overtime costs for the Delr ay Beach Marketing Cooperative and Old School Square to 50% versus 35%, and eliminate the grandfather clause and charge all other events 100% of overtime costs. All events are charged 100% for equipment rentals, such as barricades, light towers, stage use, trash boxes and towing fees. They are not charged f or regular time, use of City generator or use of City barricades. There are six (6) events that were grandfathered in at the 75% rate. These are: St. Patrick’s Day Parade, Garlic Fest, Delray Affair, Cinco de Mayo, AVDA 5K run and the Asian Food Festival. Changing the above percentage charges would increas e revenues by approximately $24,500 per year. At past meetings, it was the consensus of Com mission to make this change. 2.Charge all events an administrative charge for staf f time spent on an event which is not now being charged. This would include staff time spent at eve nt planning and recap meetings, time spent during regular work hours and any supervisory time that is not compensated for working during the event. Currently police supervisors, (lieutenan ts and above) are paid a stipend at sergeants top out rate for time worked over 40 hours and we charg e the event producer for this time. The Fire Department staffs all events with personnel at the rank of captain and below who are paid overtime. For the 4 th of July and Delray Affair, a Chief Officer is assi gned and they receive comp time. Parks Maintenance supervisors are not paid ov ertime for events, but receive comp time for working an event. Public Works supervisors are nei ther paid nor do they get comp time for working an event. My time and my assistant’s time is somewhat offset by the permit fees. Other staff members that perform tasks which are not recouped are the Purcha sing Manager and Finance Accounting Clerk. We also do not charge an event producer for staff time spent on the event during regular work hours. City Commission is requested to consider that a per centage of between 10% - 15% of total City costs (excluding rentals) be charged as an Administ rative fee to help in cost recovery. This would be fairly easy to implement without putting additio nal administrative burden on staff. Consider 12.5%. 3.Deposits for New Events: Based on Commission action requiring a deposit for the Delray Rocks Music event, it appears Commission wants to require deposits as a policy for all new events. Items to consider are as follows: · Rate: What percentage of total cost would be charge d? 50% seems reasonable. · Do you want to charge all new events a deposit, not ju st large ones? Some smaller events might have a difficult time in meeti ng this requirement. · How far in advance of the event would the deposit b e required? Need to consider our existing policy, Section IV, A, which requires major event applications to be submitted 120 days prior to the event, intermediate events 90 days and minor events 45 days. If Commission decides to charge a d eposit for all events, they might consider the following for payment of the dep osit: Major Event 8 weeks prior to event Intermediate Event 4 weeks prior to event Minor Event 2 weeks prior to event A deposit would not be recommended for existing eve nts, only new events. 4.Limit Number of New Events: There has been some int erest expressed by some of the Commissioners to limit new events and/or the number of events in a given week or month. Some options to consider are as follows: a. As policy, do not allow any new event at all. Our b usiest months are now September through April. We do have some room on th e calendar for events from May through August. b. Strictly enforce the event permit submittal times p er Section IV, A of the policies for all events. In practice, I follow this policy f or new events but give some latitude to our long time event producers. I would like to continue this practice. c. Strictly enforce the provisions of Section III of t he policies. In the past waivers have been granted by Commission for the number of m ajor events allowed in a given month. d. Add a provision to Section III of the policies that states “Events will only be allowed during three (3) weekends in any given mont h. 5. Eliminate co-sponsorships of events. We currently co-sponsor the following events: Holiday Parade, Boat Parade and Easter Sunrise Service. By co-sponsoring the event, we receive no revenue from the co-sponsor partner. Estimated additional r evenue $14,500. RECOMMENDATION Consideration of changes to Special Event Policies and Procedures and provide staff direction and an implementation date for changes. MEMORANDUM TO:Mayor and City Commissioners FROM:Scott Aronson, Parking Management Specialist Richard C. Hasko, PE, Director of Environmental Ser vices THROUGH:David T. Harden, City Manager DATE:March 5, 2012 SUBJECT:AGENDA ITEM WS.4 - SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 PROVIDE DIRECTION ON VALET PARKING PROGRAM OPTIONS ITEM BEFORE COMMISSION The item before the City Commission is to provide s taff direction regarding valet parking program options. BACKGROUND The City Commission, at its meeting of December 6, 2011, discussed the current valet parking program. The Commission requested a review of the valet parking agreements and for multiple options to be presented to the Commission including the pos sibility of the City contracting directly with vale t companies. Staff intended to address changes to the valet agre ements once a decision was made concerning the Parking Study recommendations to go to a fee based program. It is noted that a fee based program throughout downtown creates a financial value per p arking space which cannot be ignored when assessing valet queue fees, especially in the eveni ngs where parking occupancy will likely exceed the 85 th percentile. However, since the valet agreements a re coming up for renewal at the end of this month, it is important that we have this discussion at this time. Since the mid 1990’s the City has had a valet parki ng program which allows the use of on-street public parking spaces to provide valet parking service to downtown patrons by entering into individual licensing agreements with participating establishme nts. The most successful component of this program is the requirement for licensees to lease private p arking lots that are not already serving a required parking need when utilized. This provision increase s the available parking in the area by several hundred parking spaces. When the program was imple mented, Commission did discuss the possibility of the City running the program or contracting it o ut. The Commission, at that time, did not want to have to go out and lease lots from the private sect or or assume the cost of liability insurance; and t hey did not feel we had the staff capabilities to opera te the program ourselves. Also, they did not want one company to have a monopoly. The valet program currently utilizes 50 on-street parking spaces throughout the Central Busine ss District. With current fees ranging from $125 per s pace, per month east of the Intracoastal Waterway (ICW) to $100 per space west of the ICW, the progr am generates $52,200 per year. An additional $19,200 per year is generated from the lease of 40 spaces, in the Federspiel Garage, at $40 per space, per month, to the Prime Steakhouse queue on SE 2nd Avenue. To demonstrate the program's potential, assume 500 spaces are collectively leased by valets . Applying a 1.75 turnover ratio results in the accommodation of 875 vehicles, with no additional i mpact to the available pool of public parking spaces. The resulting 16.2 vehicle per space turnov er ratio far exceeds that of publicly used spaces during the same time period. Chapter 9 of the Parking Study suggested an indepen dent study of valet parking. Other observations were included which could be implemented without in curring the cost of additional study. A. Reevaluation of the valet queue locations to mee t current and potential future needs of the City. B. Consistency between locations portraying a unifi ed system, making it apparent queues are public facilities. C. Maintaining consistently high levels of service. These improvements may be achieved by the following : 1. Maintaining the current program and increasing t he monthly fee per space, with additional modifications to the agreements addressing items ab ove. 2. Hourly Management Agreement: Advertise a Request For Proposal (RFP) for the man agement of the valet parking system. Criteria would include the ab ility to provide parking lot leases, insurance, past history, etc. The City, at its option, would enter into an agreem ent with the service provider. The City would pay an hourly fee for the services provided a nd receive all revenue generated by the vehicles parked. 3. Flat Fee Management: Issue a RFP for a flat fee management program, sim ilar to above, however the service provider would propose a flat fee to the Ci ty, paid, weekly, monthly, or annually. In this scenario, the service provider would pay the City a fee for operating the valet queues. The service provider would keep revenue generated from performi ng the service. 4. In House Operation: Expand the Parking Division and take the program i n-house, thereby controlling all aspects of service. This could be an opportunit y to continually improve service while creating loc al jobs for Delray citizens. 5. RFQ: Advertise the opportunity for the licensing of eac h queue separately, or as a system. The City would then negotiate fees with the qualified vendor s. It is noted, suggestions 2 and 3 would be directed toward Parking Service Providers. Of immediate concern is the impending automatic ren ewal of the existing Parking License Agreements on March 31, 2012. Modifications in 2011 included the automatic renewal of valet queues, subject to meeting certain criteria. During deliber ations of subsequent requests to establish valet qu eues City Commission has reconsidered that provision. Co nsequently, it is recommended that all current agreements expire on March 31, 2012. Outside of opt ion 1 above, time will be needed to properly implement the selected option. If an option other t hat option 1 is selected, staff recommends one-year renewal of all valet parking license agreements inc luding a 20% fee increase; the agreements would then expire on March 31, 2013, or at such time noti fication is given by the City of earlier terminatio n for the implementation of a revised program. REVIEW BY OTHERS The Parking Management Advisory Board, at their mee ting of February 28, 2012, unanimously recommended retaining the existing program with no increase to fees. The Community Redevelopment Agency, at their meetin g of March 8, 2012, supported the current valet program methodology, and they suggested working on fees with the licensees. The y also recommended a six-month extension with no increase if another o ption is selected. RECOMMENDATION Staff is seeking Commission direction. DE L R A Y B E A C H VA L E T P A R K I N G PR E S E N T A T I O N OB J E C T I V E S : VA L E T P A R K I N G • EV A L U A T E C U R R E N T P R O G R A M Re v i e w P a r k i n g S t u d y R e c o m m e n d a t i o n s • EV A L U A T E C U R R E N T P R O G R A M As s u r e E q u i t y T o C i t y Pr o v i d e O p t i o n a l V a l e t P a r k i n g P r o g r a m s Ev a l u a t e C u r r e n t P r o g r a m Se c u r e C i t y C o m m i s s i o n D i r e c t i o n T o P r o c e e d CU R R E N T P R O G R A M : VA L E T P A R K I N G Re v i e w e d c a s e b y c a s e Si n c e 2 0 0 1 n o n e w q u e u e s O n A t l a n t i c A v e n u e be t w e e n S w i n t o n A v e n u e & t h e I C W Va l e t s u s e v a r i o u s d e s i g n s f o r q u e u e e l e m e n t s su c h a s s i g n a g e , u n i f o r m s , v a l e t s t a n d s , e t c . Pr i v a t e L o t L e a s e R e q u i r e m e n t S i g n i f i c a n t l y In c r e a s e s P a r k i n g I n v e n t o r y CU R R E N T P R O G R A M : VA L E T P A R K I N G Va l e t Q u e u e F e e s A r e C u r r e n t l y $ 1 2 5 / S p a c e / M o n t h Ea s t O f T h e I C W A n d $ 1 0 0 / S p a c e / M o n t h , W e s t O f T h e IC W A p e r c e p t i o n e x i s t s t h a t r e v e n u e f r o m v a l e t p a r k i n g op e r a t i o n s a r e i n e q u i t a b l e c o m p a r e d t o t h e v o l u m e o f va l e t q u e u e t r a f f i c Re c e n t m o d i f i c a t i o n s t o t h e a g r e e m e n t s c a p s f e e s f o r va l e t p a r k i n g a t $ 1 0 , i n c l u d e d r e q u i r e m e n t s f o r p r i c e le t t e r i n g s i z e f o r b e t t e r v i s i b i l i t y a n d p r o v i d e d f o r va l i d a t i o n p r o g r a m s f o r n e i g h b o r i n g b u s i n e s s e s PA R K I N G S T U D Y R E C O M M E N D A T I O N S : VA L E T P A R K I N G Re e v a l u a t e q u e u e l o c a t i o n s Cr e a t e u n i f o r m i t y a m o n g q u e u e s Im p r o v e p u b l i c a c c e s s a w a r e n e s s Ex p l o r e o t h e r p r o g r a m o p t i o n s CU R R E N T P R O G R A M O P T I O N S : VA L E T P A R K I N G Mo d i f y c u r r e n t a g r e e m e n t s t o r e q u i r e c o n s i s t e n t si g n a g e , u n i f o r m s , v a l e t s t a n d s , e t c . , t o p r o v i d e pu b l i c a w a r e n e s s In c r e a s e f e e s c o m m e n s u r a t e w i t h v o l u m e o f ve h i c l e s i n t h e a r e a Re e v a l u a t e q u e u e l o c a t i o n s f o r p o s s i b l e mo d i f i c a t i o n t o m e e t c u r r e n t n e e d s OT H E R P R O G R A M O P T I O N S : VA L E T P A R K I N G Ad v e r t i s e F i x e d - P r i c e M a n a g e m e n t R F P Pr o v i d e V a l e t S e r v i c e s I n - h o u s e Ad v e r t i s e F l a t F e e M a n a g e m e n t R F P Ad v e r t i s e R e q u e s t F o r Q u a l i f i c a t i o n s Op t i o n s m a y r e q u i r e t h e C i t y t o p r o v id e s p a c e s f o r t h e s t o r a g e o f v e h i c l e s FL A T - F E E M A N A G E M E N T P R O G R A M : VA L E T P A R K I N G Se l e c t m o s t q u a l i f i e d b i d d e r o f f e r i n g t h e b e s t va l u e f o r t h e m a n a g e m e n t o f t h e v a l e t s y s t e m Op e r a t o r r e t a i n s r e v e n u e , c o v e r s a l l e x p e n s e s an d a s s u m e s a l l l i a b i l i t i e s Ad v e r t i s e a R F P i d e n t i f y i n g f e e s c h e d u l e s , st a f f i n g , e t c . Ci t y i s p a i d a f l a t f e e f o r t h e m a n a g e m e n t o f t h e va l e t s y s t e m VA L E T P A R K I N G Se l e c t m o s t q u a l i f i e d b i d d e r o f f e r i n g t h e b e s t va l u e f o r t h e m a n a g e m e n t o f t h e v a l e t s y s t e m Ci t y i s c h a r g e d a n h o u r l y f e e f o r t h e a l l in c l u s i v e m a n a g e m e n t o f t h e v a l e t s y s t e m Ci t y r e t a i n s a l l r e v e n u e g e n e r a t e d FI X E D - F E E M A N A G E M E N T P R O G R A M : Ad v e r t i s e a R F P i d e n t i f y i n g s c o p e o f s e r v i c e s in c l u d i n g f e e s c h e d u l e s , s t a f f i n g , e t c . Ne g o t i a t e d S e r v i c e s : VA L E T P A R K I N G Sh o r t l i s t r e s p o n d e n t s d e e m e d m o s t q u a l i f i e d t o ma n a g e t h e p r o g r a m Ne g o t i a t e b e s t t e r m s f o r C i t y a n d S t a k e h o l d e r s Ad v e r t i s e R e q u e s t F o r Q u a l i f i c a t i o n s Re q u e s t p r o p o s a l s f r o m 3 t o p r a t e d re s p o n d e n t s IN - H O U S E O P E R A T I O N : Th e C i t y w o u l d m a n a g e v a l e t p a r k i n g q u e u e s . VA L E T P A R K I N G Th e u s e o f p u b l i c p a r k i n g s p a c e s t o s t o r e ve h i c l e s w o u l d r e d u c e c u r r e n t p a r k i n g s u p p l y Re e v a l u a t e q u e u e l o c a t i o n s , e s t a b l i s h s t a f f i n g le v e l s , c o n d u c t h i r i n g p r o g r a m Da m a g e C l a i m s , r e a l o r f a b r i c a t e d , r e q u i r e ca r e f u l o v e r s i g h t a n d c a n b e e x t r e m e l y c o s t l y Th e r e a r e s u b s t a n t i a l c o s t s i n c l u d i n g s i g n i f i c a n t ex p a n s i o n o f P a r k i n g S e r v i c e s D i v i s i o n Cl o s i n g c o m m e n t s : VA L E T P A R K I N G Be n e f i t o f c u r r e n t p r i v a t e l o t l e a s e r e q u i r e m e n t is s u b s t a n t i a l Th e u s e o f p u b l i c p a r k i n g s p a c e s t o s t o r e ve h i c l e s w o u l d r e d u c e c u r r e n t p a r k i n g s u p p l y Re e v a l u a t i o n o f v a l e t q u e u e l o c a t i o n s s h o u l d b e pe r f o r m e d r e g a r d l e s s o f p r o g r a m s e l e c t e d Da m a g e C l a i m s , r e a l o r f a b r i c a t e d , r e q u i r e ca r e f u l o v e r s i g h t a n d c a n b e e x t r e m e l y c o s t l y ST A F F R E C O M M E N D A T I O N : VA L E T P A R K I N G Re q u i r e a l l s i g n a g e t o s t a t e PU B L I C V A L E T Co n s i d e r l i c e n s e e s ’ s u g g e s t i o n f o r l o n g e r ag r e e m e n t t e r m s , ( 3 - 5 y e a r s ) Re e v a l u a t e v a l e t q u e u e l o c a t i o n s In c r e a s e v a l e t q u e u e m o n t h l y f e e s Ma i n t a i n c u r r e n t p r o g r a m It i s n o t e d , i m p l e m e n t a t i o n o f a f e e b a s e d p r o g r a m ma y r e q u i r e a d d i t i o n a l e x a m i n a t i o n o f r a t e s c h a r g e d VA L E T P A R K I N G MEMORANDUM TO:Mayor and City Commissioners FROM:Randal L. Krejcarek, P.E., LEED AP, GISP, City Engineer Richard C. Hasko, PE, Environmental Services Direct or THROUGH:David T. Harden, City Manager DATE:March 7, 2012 SUBJECT:AGENDA ITEM WS.5 - SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 DISCUSSION OF ON STREET PARKING REGULATION ITEM BEFORE COMMISSION This item is before the Commission for discussion o f current on-street parking enforcement hours along Atlantic Ave and SR A1A. BACKGROUND The City currently regulates and enforces on-street parking limits along A1A and along East Atla ntic Avenue, east and west of the Intracoastal Waterway (ICW), as follows: Street Location Enforcement Hours Metered Limit E Atlantic Ave West of ICW 8 am – 8 pm No 2 hr E Atlantic Ave East of ICW 8 a m – 8 pm Yes 2 hr SR A1A Public beach 8 am - 8 pm Yes 2 & 4 hr This information is presented for discussion by the Commission regarding the current parking enforcement hours. Commissioner Carney has suggested that paid parking (meters) should not be enforced until later in the morning at least on Atlantic Avenue, and perhaps no t on A1A as well. Several questions need to be discussed. Does the Commission majority wish to ch ange the hours for enforcing metered parking on Atlantic Avenue and/or A1A, either seven days a wee k or for certain days? If the meters are not enforced, then should the two hour time limit be en forced? Keep in mind that if the hours of enforcement are reduced we will lose revenue from b oth parking meters and parking tickets. MEMORANDUM TO:Mayor and City Commissioners FROM:Richard C. Hasko, P.E., Environmental Services Director THROUGH:David T. Harden, City Manager DATE:February 27, 2012 SUBJECT:AGENDA ITEM WS.6 - SPECIAL/WORKSHOP MEETING OF MARCH 15, 2012 DRAFT PROPOSALS FOR DRAINAGE DESIGN REQUIREMENTS ITEM BEFORE COMMISSION This is a presentation of draft proposals for the r evision of LDR Sections 2.4.3, Submission Requirements and 6.1.9, Drainage Systems, addressin g design requirements for storm drainage and surface water management systems, and mitigation of flood plain encroachment by new structures which could result in negative impacts to existing neighborhoods. BACKGROUND As infill development and redevelopment of properti es occurs throughout the city, new development projects are required to conform to current regulat ions as they relate to drainage system design, minimum floor elevations, etc. This can result in a condition where new housing must be constructed a t higher elevations than the existing surrounding str uctures, particularly in high hazard flood zones su ch as the barrier island neighborhoods. While our Land Development Regulations (LDR) mandat e compliance with the requirements of the South Florida Water Management District (SFWMD) for drainage and surface water management designs and flood protection, those requirements ge nerally apply to larger scale development than wha t typically occurs in Delray Beach and, in fact, typi cally exempt projects less than ten acres in area. In the past, we have had complaints from residents about flooding occurring in areas that have not historically been flood prone. This typically is t he result of new buildings being required to set fl oor elevations significantly higher than existing struc tures in older neighborhoods. In order to build sl ab on grade structures, much of the development area must be filled to meet the current criteria. While allowable runoff from such parcels can usually be a ccommodated in the surrounding drainage system, the fill material necessary to construct at the req uired elevations displaces what was formerly availa ble storage in the watershed or drainage basin. As a r esult, flood stages will increase in the surroundin g neighborhood from rainfall events that historically caused no flooding. This is due to the reduction in available basin storage. The proposed LDR revisions attached are intended to address the issue of flood plain encroachment as well as establish specific minimum drainage design criteria that are not subject to exemption from SFWMD regulations based on project size. SECTION 2.4.3 (D) (D) Preliminary Engineering Plans (1) Preliminary engineering plans shall provide in formation and be in a format as required by Section 2.4.3 (B), Standard Plan Items. (2) Said plans shall be drawn on a topographic base (unless the use of spot elevations are previously approved by the City Engineer) with topo graphic features extended to a minimum of ten feet (10’) beyond the site including finished floor elevations of the nearest adjacent habitable structure abutting all site boundaries . All plans shall be drawn on a sheet which is 24” by 36”. (3) Said plans shall show the approximate location , dimensions and size, as shown in records of Delray Beach and/or field observations of all ex isting water, sewer, and drainage facilities along with streets, sidewalks and above ground impr ovements which provide service to and on the site. Notes shall state the disposition of all existing facilities including service lines, meter s, etc. (4) Said plan shall show the proposed location, siz ing, and design basis of water, sewer, fire suppression, and drainage facilities which are to s erve the site, including pertinent calculations, and the method of providing service to the proposed structures. (5) Said plans shall show the method of providing servi ce to proposed structures. (6)(5) Said plans shall show the location of proposed street lights and shall address the responsibility for installation. (7)(6) Surface water management calculation indicating the proposed system’s ability to meet storm water quality and quantity requirements in ac cordance with Section 6.1.9 and SFWMD (South Florida Water Management District) regulatio ns. (8)(7) Said plans may include a plan sheet which inclu des all proposed improvements on one plan sheet at a scale other than what is required i n Section 2.4.3 (B) (1). This additional submittal is in addition to plans submitted meeting the scale requirement in Section 2.4.3 (B) (1). SECTION 2.4.3 (F) (F) Final Engineering Plans: Final Engineering Plans are construction drawings which have been prepared by a Registered Engineer in a manner format acceptable to permitting agencies. (1) Water and sewer plans must be prepared pursuan t to requirements of the City Engineering Department and the Department of Health and Rehabilitative Servic es (HRS). (2) Drainage plans must be prepared pursuant to re quirements of the City Engineering Department and the South Florida Water Management District. (3) Street improvement plans must be prepared purs uant to specifications as set forth by the City Engineer for local streets; and, per Palm Beac h County or FDOT requirements for streets which are under the jurisdiction of those agencies. (4) Composite utility plans shall show the propose d locations of all existing and proposed utilities (water, sewer, power, telephone, gas, cab le, drainage devices) and shall be signed by a representative of each utility provider attesting t o the fact that services can be accommodated as shown on the composite utility plan. The compos ite plan shall address the responsibility for relocation of existing services and installation of new services. SECTION 6.1.9 Section 6.1.9 Drainage Systems (A) The d Drainage and surface water management system s shall be designed and constructed for long life, low maintenance cost and ease of maintenance. (B) A n adequate The drainage system shall be designed to include all including necessary open swales ditches, pipes , culverts, intersectional drains, inlets, bridges and the like other system appurtenances required to shall be provided adequate capacity for the proper drainage of all surface storm water for the specified design storm event . Cross drains shall be provided to accommodate al l natural water flow and shall be of sufficient lengt h to permit full width roadway and required slopes. (C) Develop ers of subdivisions whose storm drainage system dis charges into the Lake Worth Drainage District shall contract with the Lak e Worth Drainage District for maintenance of drainage facilities prior to annexation to the city . (D)(C) Lots shall be laid out configured and graded to provide positive drainage and route runoff away from all existing or proposed buildings. (D) Finished floor elevations shall be a minimum o f eighteen inches (18”) above the highest centerline or crown elevation of adjacent roadways or as established by the Federal Emergency Management Agency (FEMA) for flood zone designation s where base flood elevations are determined. (E) No net floodplain encroachment above the avera ge wet season water table which will adversely affect the existing rights of others will be permitted. (F) Provision must be made to replace or otherwise mitigate the loss of historic basin storage provided by the project site. (E)(G) The drainage Surface water management system s shall be designed using accepted engineering principles for rainstorms of maximum in tensity based on a ten year interval for the South Florida area. in accordance with the requirements of the South Fl orida Water Management District Basis of Review for Environmental Resource Permits (SFWMD BOR)(latest revision) regardless of development area. The system Systems shall provide for positive drainage of lots, streets, roads, and other public areas. The design shall provide capacity for the maintenan ce of any and all historical offsite watershed runoff flowing to or through the development site as well as handling any runoff from adjacent areas that natura lly flows onto the subject area . Runoff coefficients shall be based on completed projects. At a minimum, The the following standards shall apply to all drainage projects system designs: (1) Storm sewers, cul verts and related installations shall be provided. Where necessary, according to the City Engineer: (a) To permit unimpeded flow of natural water courses. SECTION 6.1.9 (b) To insure adequate drainage of all low points. (c) To intercept storm water runoff along streets at in tervals reasonably related to the extent and grade of the area drained. (1) Design storm shall be a 10 year return frequency of 24 hour duration. (2) Minimum site retention for water quality: (a) The greater of the first 1” of runoff and 2.5” x % site impervious area for water quality. Sample calculation: First 1” of runoff 1”/12 x site area(sf)=Vol. (c f) 2.5”x % impervious area (2.5”/12)x % imperv area(sf)=Vol. (cf) (3) Minimum site retention for water quantity: (a) The difference between pre-development and post de velopment site runoff for the 10 yr./24 hr. design storm. Runoff shall be calcul ated using methodology as set forth in the SFWMD BOR considering rainfall distrib ution to establish peak stage and runoff values over the duration of the design s torm. (F) In the design of storm sewerage installations, spec ial consideration shall be given to avoidance of problems which may arise from concentr ation of storm water runoff over adjac ent properties. (G) The subdivider may be required to carry away by pip e or open ditch any spring or surface water that may exist previous to or as a result of the subdivision. Such drainage facilities shall be located in the street right -of - way where f easible, or in perpetual unobstructed easements of appropriate width. (H) A c C ulvert s or and other drainage facility ies shall, in each case, be large enough have adequate capacity to accommodate potential runoff from it’s the entire upstream drainage area for which they are designed , whether inside or outside the subdivision. The C ity Engineer shall approve the design and size of the facility based on antici pated runoff from a ten year storm 10 yr./24 hr. design storm under conditions of total potential development pe rmitted by the zoning code in the watershed. (I) The subdivider’s engineer system design shall also study consider the effect impact of such subdivision site development on the capacity of existing downstream drainage facilities outside the area of the subdivision; this study shall be r eviewed by the City Engineer . Where it is anticipated calculations as prepared by the development enginee r and approved by the City Engineer indicate that the additional of runoff incident to the development of the subdivis ion to downstream drainage facilities will overload result in the exceedance of the capacity of an existing downstream drainage facility any such facilities during a ten year for the 10 yr./24 hr. design storm, the subdivision shall not be approved until provision h as been made for the improvement of the condition. a design for an adequate increase in capacity for the affected facilities has been submitted SECTION 6.1.9 by the development engineer and approved by the Cit y Engineer. The new drainage system will not be approved for connection to the downstream facili ties until the capacity improvements are constructed. (J) The owner or responsible entity of any land dev elopment or redevelopment that discharges directly or indirectly to a Municipal Se parate Storm Sewer System is required to provide for annual inspections, and operation and maintenan ce of its storm water management system, to ensure that the system functions as designed and pe rmitted.