MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF FEBRUARY 19, 2013 PRESENT: Chair Suzanne Atwell, presiding, Vice Chair Willie Shaw, Members Paul Caragiulo, Shannon Snyder and Terry Turner, City Attorney Robert Fournier, Deputy Secretary Karen McGowan and Deputy Executive Director Marlon Brown ABSENT: Executive Director Thomas Barwin and Secretary Pamela Nadalini The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Atwell at 2:55 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF NOVEMBER 5, 2012 (AGENDA ITEM CRA-1) Chair Atwell noted CRA consensus to approve the minutes of the Special CRA meeting of November 5, 2012. 2. APPOINTMENT RE: NEWTOWN COMMUNITY REDEVELOPMENT (CRA) ADVISORY BOARD (AGENDA ITEM CRA2) Deputy Secretary McGowan stated that the term of Margaret Esaw-Christmas expired in December 2012; that Ms. Esaw-Christmas holds the seat designated for a retailer or merchant in the redevelopment area; that Ms. Esaw-Christmas is eligible for re-appointment and has expressed an interest In being reappointed by filing a new application with the Office of City Auditor and Clerk; that a vacancy exist due the term of Teresa Richardson expiring in January 2013; that Ms. Richardson held the seat designated for an owner of land in the redevelopment area; that another vacancy exist due to the resignation of Wade Harvin; that Mr. Harvin held the seat designated for an individual involved in finance and banking; that Victor Johnson has submitted an application and would qualify as a land owner in the redevelopment area; that Harvey Ruiz, Peter Karabatsos, Troy Bellamy and Joseph Bessard, III, all submitted applications and would qualify for the one seat designated for someone with finance and banking background. Vice Chair Shaw nominated Margaret Esaw-Christmas for re-appointment to the seat designated for a retailer or merchant, Victor Johnson for appointment to the seat designated for a land-owner in the redevelopment area and Harvey Ruiz for appointment to the seat designated for an individual in finance and banking. Ms. Esaw-Christmas received five votes: Atwell, yes; Caragiulo yes; Shaw, yes; Snyder, yes; Turner, yes. Mr. Johnson received five votes: Atwell, yes; Caragiulo yes; Shaw, yes; Snyder, yes; Turner, yes. Mr. Ruiz received five votes: Atwell, yes; Caragiulo yes; Shaw, yes; Snyder, yes; Turner, yes. Chair Atwell congratulated and announced the re-appointment of Ms. Esaw-Christmas and appointments of Mr. Johnson and Mr. Ruiz to the Newtown Community Redevelopment Agency Advisory Board (CRAAB). 3. REPORT RE: DOWNTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD (CRAAB) REPORT OF JANUARY 31, 2013 (AGENDA ITEM CRA 3) Chief Planner Steve Stancel, Neighborhood and Development Services (NDS) Department and Board Member Tony Souza, Downtown Community Development Agency Advisory Board (CRAAB), came before the Sarasota Community Redevelopment Agency (CRA) Board. Mr. Souza stated that the Downtown Community Development Agency Advisory Board (CRAAB), met on January 31, 2013, for the purpose of discussing and approving: 1) Election of Officers, 2) Quarterly Financial Report and 3) Recommendations to be presented to the Sarasota Community Redevelopment Agency Book 3 Page 31768 02/19/13 2:30 P.M. Book 3 Page 31769 02/19/13 2:30 P.M. (CRA) Board for proposed Phase Agreement of the State Street Garage Mixed-Use project; that the terms of agreement and scope of services to be rendered by A.D. Morgan Corporation, carried by a 4 to 2 vote; that he voted no due to concerns of the process used to award the contract to A. D. Morgan Corporation; that the CRAAB is recommending the CRA Board accept the January 31, 2013, CRAAB report. A motion was by Member Snyder, seconded by Vice Chair Shaw, and carried by a 5-0 vote to accept the Downtown Community Development Agency Advisory Board (CRAAB) Report of January 31, 2013. 4. PRESENTATION AND DISCUSSION RE: PHASE I AGREEMENT BETWEEN THE CITY OF SARASOTA AND A.D. MORGAN CORPORATION (RFP 512-62DB) CONCERNING STATE STREET PARKING GARAGE IN AN AMOUNT NOT TO EXCEED $462.633 FOR PHASE I (AGENDA ITEM CRA-4) Chief Planner Steve Stancel, Neighborhood and Development Services (NDS) Department and Purchasing Manager Mary Tucker, Purchasing Division, Financial Administration Department, came before the Commission. Mr. Stancel gave a power-point presentation and stated that the City solicited a Request for Proposal (RFP); that Phase I of the contract was awarded to A.D. Morgan (A.D. Morgan) Corporation for design and build services of a municipal parking garage and mixed-use project; that the project is located at 1538 State Street; that the project involves constructing 300 to 500 parking spaces, with the exploration of added mixed- use space such as retail, commercial and residential; that the estimated cost of $7.2 million was established two-years ago for the proposed project, which came from utilization and actual costs associated with the Palm Avenue parking garage comparison with national and medium construction costs and anticipated increase in building costs for the future; that during discussions with various proposers of the RFP, determination was made of the pricing, which is considered to be good for 400 parking spaces and 10,000 to 14,000 square feet of retail box facilities; that if the City ultimately ends up with a higher number of parking spaces, the number will potentially go up or down, as well as the potential uses; that the $7.2 million is for an estimated maximum of 400 parking spaces and 10,000 to 14,000 square feet of mixed-use space; that the City has a contractual agreement with IGH, 1400 State LLC., formerly known as Pineapple Square to build a parking structures with a minimum of 300 parking spaces by February 11, 2015; that the proposed site is on State Street between Lemon and Orange Avenues and is approximately 44,000 square feet; that the site currently acts as a surface parking area for 139 parking spaces, which is accessed directly off of State Street and Ringling Boulevard; that Lemon Avenue will have retail on the two bottom floors and State Street could be utilized for office or other uses; that a bottom floor height of 14 feet or higher is considered two-stories; that the building is 105 feet by 350 feet, and with the inclusion of an adjacent 20 foot alleyway, the maximum width would be about 125 feet, if the assumption is to discontinue the alleyway; that to-date the process has taken approximately 11 years; that on October 1, 2012, Staff presented an update of all the Downtown projects to the Commission and asked for clarification as to whether the space in the garage had to be presold; that the Commission did not want the garage space to be presold and gave Staff direction to focus on the market to determine use for the garage; that Staff recommended a Phase I process; that Phase I, would consist of public involvement, geotechnical site research, engineering, conceptual site plans, and development of elevation with detail to create a guaranteed maximum prize, which would then evolve into Phase Il; that Phase II, would include the final engineering documents, permitting site work construction, landscape and streetscape. Ms. Tucker stated that the request RFP was issued on September 26, 2012, in accordance with the Florida State Statute 287.055; that the City received eight proposals on October 25, 2012, and began to establish a evaluation selection committee to review and score the proposals based on the criteria set forth in the RFP; that Staff contacted several citizens to serve on the evaluation selection committee; that everyone contacted had conflicts, except one who had a conflict of interest; that the evaluation selection committee consisted of five City employees; that 95 percent of all members of the evaluation committee are City employees and each one has either experience in construction, parking, or knowledge of the Downtown area; that on November 27, 2012, the evaluation selection committee was tasked to score and short-list the written proposals; that the following five semi-finalists were chosen: 1) A.D. Morgan Corporation 2) Halfacre Construction Company 3) Manhattan Construction 4) Core Construction Services Incorporated and Gilbane Building Company (tied) Ms. Tucker continued by stating that the evaluation selection committee chose two of the five semi-finalist on November 30, 2012, followed by a second interview of the two finalist; that A.D. Morgan, was chosen as the preferred design and build team on December 13, 2012; that on December 14, 2012, a notice of RFP action was posted, which opened the three-day protest period and no protests were filed. Mr. Stancel stated that if the Commission were to approve the Phase - Agreement between the City and A.D. Morgan; that A.D. Morgan would immediately begin to scheduled a listening meeting with Stakeholders on March 11, 2013 or March 18, 2013; that the results of the meeting would be brought before the Commission at the April 15, 2013, Regular Sarasota City Commission meeting; that completion of the detailed engineering design plan is anticipated by December 30, 2013, City permitting and approval by February 11, 2014, followed by immediate construction and a proposed completion date of December 31, 2014. In response to a question from Commissioner Caragiulo asking if the project would require hiring additional manpower, Mr. Stancel stated that City's contract employees would oversee the project. Deputy City Manager Brown stated that Staff salaries are generally charged-back to the assigned projects. Commissioner Caragiulo stated that someone overseeing the project is understood, but in light of a conversation regarding CRA and the concern of CRA money being extracted, could clearly be illustrated from those not in favor of the procedure being utilized. In response to question from Commissioner Caragiulo asking where did the $35,000 amount come from, Finance Director Christopher Lyons, Financial Administration Department, came before the Commission and stated that he could not reference where the amount came from for this particular project. Discussion ensued about money budgeted for CRA, total budgeted for the Palm Avenue parking garage project, and cost saving if a third public hearing is not necessary. The following people spoke: Darrell McLain, President, DCM Architects, former President of BMK Architects and currently the architect for A.D. Morgan Corporation, indicating has practiced architecture for 25 years and is familiar with the City and County and for the record was the architect for Riverview High School, Sarasota Memorial Hospital, Hillview parking garage, Sarasota County Jail Annex, bookings and housing buildings, and Sarasota County Courthouse restoration,. Phillip Smith, Principal, David Johnson and Associates, 30-year resident in the City, indicating the firm has been involved with many streetscape projects for the City including Whole Foods and 1350 Main Street, excited to be part of the A.D. Morgan Corporation team and for the record was the architect for Pineapple Square project. Kurt Jensen, President, Jensen and Group (JAG), indicating partnering on the Phase II project is exciting and recently completed a project for A.D. Morgan Corporation. Tony Souza, indicating the Phase II project vote was regarding the process not the contractors, hard to believe and was appalling to hear no could be found to sit on the evaluation selection committee, since partnerships exist with many Downtown organizations, this is the first time seeing the list of contractors, five City employees who do not necessarily understand and are not architects, planners or environmentalist is disturbing and reason for the no vote. Paul Thorpe, Member, Community Redevelopment Agency (CRA) Advisory Board, indicating he voted in Book 3 Page 31770 02/19/13 2:30 P.M. Book 3 Page 31771 02/19/13 2:30 P.M. favor of the project and process, everyone who voted in favor of the project feels the same way as Mr. Souza, proper information was not given and no one from the committee was in attendance, the CRA was given the opportunity to voice input and feels the process was flawed. Rebecca Smith, Founder and President, A.D. Morgan Corporation, indicating she owns a home and rentals on Anna Maria Island, just wanted to highlight the firm's work experience, let the partners make introductions and say hello. John Kauaf, Vice President, A.D. Morgan Corporation, indicating the firm has a very successful relationship for developing excellent service for over the past three-years and looks forward to working with the City to deliver a successful project. Mr. Stancel stated that the process took two-years; that Staff brought the process before the CRA and CRAAB to explain the selection process; that the information was openly available and no one participated; that the process is not for CRAAB or other community boards members to become involved in the selection process. Discussion ensued about possible conflict issues from utilizing outside participants, potential problems of incorporating mixed-use in the project, the difference between an Invitation to Negotiate (ITN) and Request for Proposal (RFP), which actually uses the same process. In response to a question from Commissioner Turner asking if members of the evaluation selection committee going before the CRA for input was legal under State bidding laws, City Attorney Fournier stated that a certain amount of points taken out of the 100 point could have been assigned for CRAAB or CRA review. Ms. Tucker stated that this process was used to establish three separate committees for the Palm Avenue parking garage, which was a nightmare. Discussion ensued about concerns of the non-parking usage on the second floor, the continuance of the proposal coming back with 400 parking spaces, the $7.2 million cost and how much of the incremental capital is associated with workforce housing and how much of incremental cost is associated with 350 to 400 parking spaces. In response to a question from Commissioner Turner asking about the annual cost the City pays for maintenance for the Palm Avenue parking garage, Parking Manager Mark Lyons, Parking Violations, City Manager's (CM) Offiçe, came before the Commission and stated the City's cost is approximately $245,000 annually. 4 Discussion ensued about concerns of outside citizens participating on the evaluation selection committee. In response to question from Mayor Atwell asking about the consequences, if the recommendation is not accepted by the CRA, City Attorney stated that the CRA must have legal basis for rejecting the recommendation or risk being sued. A motion was by Member Turner, seconded by Vice Chair Shaw, to approve proposed Phase I Agreement between the City and A.D. Morgan Corporation for an amount not to exceed $462,633. Member Turner stated that the selection process was followed and done according to the State law; that no one voiced concerns which would cause the CRA to not accept, or move forward with the recommendations. Vice Chair Shaw stated that he is glad minority participation has received for the project. Member Snyder stated that two dedicated professional people living in the community voiced concerns with the process; that their belief is the process was rubber-stamped, contains legal issues and pushed through by Staff. Chair Atwell stated that the project has been on-going for 11 years and should move forward; that everyone should be mindful of what occurred with the Palm Avenue garage parking project; that the Phase I project has an anticipated completion deadline of 2015; that the difficulty of some of the processes are understood. Chair Atwell asked for a vote on the motion to approve proposed Phase I Agreement between the City and A.D. Morgan Corporation for an amount not to exceed $462,633, which carried by a 3-2 vote, with Commissioners Caragiulo and Snyder voting no. 4. ADJOURN ChairAtwell: adjourned the Special Community Redevelopment Agency (CRA) meeting at 4:05 p.m. S ATTEST: Abv SUZANNE ATWELL, CHAIR u a KAREN D. MCGOWAN, DEPUTY SECRETARY Book 3 Page 31772 02/19/13 2:30 P.M.